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-- market situation.
Because obviously that is front -- center for us from a market perspective and and you are chairing the committee that will be -- questioning mr.
diamond later this month.
What is your first question to him.
I guess -- would be when they get to -- -- I'm sorry you're the ranking member apparently you're the ranking member.
My first question will be.
Women not be a good idea to implement policies.
That make these kind of losses.
-- mystified and I want to be very could have.
I never thought it was my job to keep financial institution nor any of the division would -- money.
Our job primarily was to keep the launched by any institution.
From becoming a source of contagion and cycling down to others.
Particularly with regard to derivatives and I mean what it's like I do not think JPMorgan Chase would watch that much money in homes.
I don't think there would was that much money in underwriting IPOs.
It's not an accident that that loss came unexpectedly to -- well managed bank.
With good chief executive Jamie Dimon in derivatives derivatives are inherently.
A difficult thing so.
I I regret that so much of this guy can -- on whether or not it should have been done in the -- out of the banking go to the vocal rule even more important than that to me and because of these -- things being done in a risky fashion and people came gonna keep track of written.
It doesn't make me feel better -- done outside the bank AIG was in a bank and they caused that problem what we haven't bill that I'm hoping -- still be implemented.
Are set of procedures.
For that you have margin posted by the counterparty so that you -- -- exchange you do what you -- and I think that's the question I wanna ask.
Is it possible that JPMorgan -- would have had these kind of unexpected wasn't in any other line of their business they get to know.
Which -- this is not a JPMorgan Chase problem it's an argument for the kind of efforts to regular allies -- trading in derivatives that -- thought about bill.
You know you raise a really interesting point and of course regulators were questioned yesterday.
Do you think the trade was so big that somebody like hedge front trader Boaz Weinstein who apparently got on the other side -- -- -- could see it.
Could trade against it could make money -- it's obviously was visible somewhere.
But at this same time you know regulators in the industry didn't see it do you think that that's the fault of regulators.
It's probably the fact that they have a lot to do.
The trade you mentioned Boeing points the didn't have to keep track a lot of things in the economy he they could focus on this one thing I do think this.
We put some moves into the war off that a being implemented part of the problem -- been frankly.
That agencies like the Commodity Futures Trading Commission which is the main -- derivative.
Had been starved of inadequate budget.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And particularly in the derivative area I don't think they've been given the adequate resource.
But beyond that.
-- matter -- it's a matter of time.
I think once the moves are implemented that's what we did the -- the public derivative now -- they are traded in a very large group or faction.
One off deals.
Visited no tracking of them again I want to stress.
This couldn't have happened in any other line of business so we have in our legislation and we hope they will still be implemented.
Various forms of transparency going on McCain -- -- possible.
Publishing the fight I think to be honest to blog mover in place.
JPMorgan -- wouldn't of watched as much money because this wouldn't -- come as such a surprise to them as it did it by the way for AIG -- driving the vocal -- complete.
AIG after what was that certain precipitating cause of that crisis.
They lost weight more that they were a 180 billion dollars in the hole because they couldn't keep track of their derivatives.
It -- -- -- -- story that and that's making news here in New York it is a bank called emigrant bank.
Which was given an exception to your signature legislation which is of course the Dodd-Frank bill.
And they work given inception to the rule which is gonna save them about 300 million dollars in the same time the owner of the bank is Howard -- And he is an Obama bottlers and there are those were asking the question.
This bank is the only one that's been -- to the Dodd-Frank role they're trying to figure out why you know why well I don't.
Let me take exception to -- saying this.
Yes seasonal bomb Obama he's also was significant contributor to many repugnant I apologize if this about -- -- but this is fox biased.
In fact the administration is that it's against that bill.
Michael Graham a Republican from Staten Island on the committee was the main sponsor of the bill -- giving the impression that this is some favor go Obama.
It's just that great usually wrong and -- think that the Obama administration didn't like the bill.
I was approached by congressman Graham -- problems that island.
Instead -- I didn't read about this -- the -- to the floor without without hearing without any committee vote.
I said I don't think in substantive to bed bill but I think that's a bad procedure so which because frankly I insisted that we had a hearing and we had it done publicly.
It was a book Republican committee that -- the -- up the Republican chairman who move the bill forward.
The Obama administration said no to that linkage to Obama is really outrageous.
My question is do you know why they're the only ones that got the exceptional your question what he did Obama -- -- I don't know why they got the expansion yes.
Because the Republican from -- and Michael Graham and the Democrats.
From Long Island.
There was a problem because banks under a certain amount of assets was supposed to be exempt.
They were told by the FCC to increase -- capital.
And they temporarily protect capital and that put them over the level but you question what did when he got accepted it would -- a guy who -- -- Obama Obama got the question I think we'll be clear about that.
Congress Barney Frank we always appreciate your time.
It is always an enjoyable experience I thank you so much for coming on tonight we if you're located a lot of good information.
Thank you for.
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