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-- -- time for the interest rates Dixie scandalous today lawmakers here in the US are being briefed the government considering charging individuals.
For lying about rate fixing our next guest was.
A big time critic of our current banking model during his time in office in the former senator Ted Kaufman Democrat from Delaware joins us.
Now what shall talk a little bit about your time in the senate in a minute but -- there's been so much -- in the past week about.
Breaking up the big banks and actual separation of commercial and investment banking do you think we're really on track for that -- there's not enough support DC.
No I don't know whether the short term I'm not sure I think -- while coming down supporting it is a big help but.
No no we're not in the short term and I've been saying ever since the last three years when we didn't put.
They re imposition of Glass-Steagall into the Dodd-Frank bill and right -- you know Glass-Steagall separated the commercial banks from investment banks and I see nothing you -- last three years to manage through this I think back -- what I said then that is.
We're gonna pass Glass-Steagall.
Is just a matter how much damage we do before we get to it.
-- at some point it will come back as it is being your view -- now let me go back speaking out on back your time in the senate.
One of the reasons we had -- because you're -- -- who oversaw the -- program is a Specter.
For a special -- general was on what this to talk about his bail out book last week and as I was reading that I picked out this -- which.
-- mentioned you Kaufman Brodsky rights have been a leading critic of the big banks during the regulatory reform debate.
He'd been a vocal cosponsor of the brown Kaufman amendment to the Dodd-Frank bill which would put a hard cap on the size of the banks in order.
To address too big to fail would have put -- since -- didn't does that mean the big banks are still too big to fail today.
Bother much too big to fail I mean look they -- we had to bail amount last time and they're all much much bigger remember.
Right after when we are trying to stop the bail -- try and stop the whole system coming apart.
We did a whole bunch of mergers Merrill Lynch in the -- country Rhonda BankAmerica -- we did although so they are much much bigger and it's not because a natural growth.
It's because artificial fact we pump them up.
And and when you look at read the financial press outside the finance -- -- comes to lobbying stuff from Wall Street they almost everyone says the banks are too big to fail.
No one believes the banks are actually fail.
And in fact they get incredible interest right.
Long I'm Bruce because the fact -- the market the market is like and the -- is.
These -- -- fairness there are some that argue some that are on the side of the -- big banks that would argue hey we need to be.
We need to have this scale we need in a globalized.
-- economy we need to be bigger we need to scale up in order to compete globally so there are some people that say that.
Have had it.
Have you ever accuracy analysis beyond Andrew -- -- who -- great respect from the bank giving them.
Says and economies of scale break out of a hundred billion dollars and here's the other point but just say they do have to be so bay ya know Greenspan said to -- A lot of the other thing is point is that -- over the last three -- -- look at what's going on when these banks it's incredible.
Why not just been put in the Volcker Rule which bans them from proprietary trading trading with their -- and not not just because not.
Because we're not gonna get the Volcker Rule 93% of the people that can -- -- -- Professor with me at the duke law school -- the Saudi 93% of the people contacting the regulatory agencies -- from Wall Street.
Wall Street has the complete regulatory process comes up we're not gonna get a -- role.
And -- we had a Volcker Rule you got Jamie Dimon saying that this London whale thing which was clearly speculation.
He said that's not proprietary trading try to define proprietary trades like can dance on the head of a pin.
We've got to go back to Glass-Steagall.
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