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Financial Crisis Inquiry Chairman Phil Angelides on the need for banks that commit wrongdoing to pay the price.
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This for some pretty strong words for Wall Street.
Money laundering price fixing bid rigging securities fraud talking about the mob.
No unfortunately.
Talking about Wall Street.
That line caught our attention in the Huffington Post chairman of the Financial Crisis Inquiry Commission still Angeline -- wrote it in a recent op Ed.
Want you all to read it -- on the Huff -- but -- joining me now first in -- Fox Business exclusive from Sacramento California.
To talk about that well you're calling them -- throttles mobsters at this point or at least their behavior.
-- other behaviors been trouble -- at -- and look I mean those words money laundering yes HSBC ING direct standard chartered bank.
Bid rigging a whole set of banks who built cities and towns Wells Fargo UBS JPMorgan B a day.
Price fixing the Libor manipulation Barclays and -- set of other banks.
So it's pretty disturbing -- here we are four years after the financial crisis and we do seem to have a pervasive.
Ethical problems still coursing it's way through Wall Street.
At bottom wrong if we were to ask why because you look at the bailouts and by the way.
Why I think we could all agree that pay if these banks -- -- take risks.
God -- and that's fine.
Just don't put it on our shoulders because we ended up bailing a lot of these names out -- and some of them are still very much owned by the state dependent on what -- Royal Bank of Scotland you're talking about but.
Haven't we seen.
Any criminal things anybody led away in handcuffs none of this it's sort of everybody's been given a pass and I'm wondering if it isn't the lobbyists that these banks paid fill.
To worm their way inside the beltway and convince both Democrats and Republicans.
To keep it easy on the banks.
-- look this -- been a very disturbing from a look we're not a country that wants -- and justice we don't want heads on a stick.
And we don't want people just cost.
You know to satisfy the blood thirst for revenge -- but we want justice and we want -- thorough investigation I think people feel.
That there hasn't been the level of effort made to uncover the wrongdoing and to punish it and the damage here Liz I think is.
Is very fundamental because it erodes confidence our legal system it also erodes confidence in the financial markets.
When the business section reads like a rap sheet.
That shakes the economy it shakes investors' confidence in the market.
It's not good and you know as to the money issue I'll -- Wall Street has poured the money in the lobbying and -- political contributions.
In the last two years alone.
More than 300 million dollars in lobbying thousands of lobbyists -- regulatory agencies in the congress.
In the last two election cycles alone more than 200 million dollars so yeah.
You gotta be deeply concerned not only about the distorting the fact that this power has on the markets.
But our democracy and and -- -- tasting you know I'm in business I mean for two decades.
I'd been in the private sector and I find that whether my business colleagues are Republicans or Democrats.
They're very disturbed by the fact that Wall Street Louis seems to live by another set of rules because of its immense power.
And I think it's very disturbing politically and from an economic standpoint.
Well you just I want people to focus on what soldiers said 300 million dollars paid to lobbyists there's a reason that.
That property values inside the beltway are so high because lobbyists are doing extraordinarily well now word we have a problem with people doing well in this country are on this network we love the free market.
What we don't love.
Is allowing these banks to run roughshod over the little guy out there the rest of America frankly.
And then ask us to bail them out so so they would say -- out too big to fail us over but I I saw this stuff built -- of the biggest banks.
Hold 77%.
Of the assets of folks that means that some of them is they were to get in trouble.
Somebody would have to save them because your money in in your bank account might not be there and everybody would flip out of their minds but -- How are the top bankers really reacting to when it comes to the push for regulation we we had an interview Charlie Gasparino had an interview with Jamie Dimon I want you to listen to the sound -- Jamie Dimon talked a pretty good game about being open to an uber regulator here's what he -- listen.
There's been going charge.
There's no one person in charge and we set up when the regulation -- in favor as the financial services oversight committee and because one because we had is that we didn't have.
One place -- we -- a lot of things on regulator improperly -- becoming gaps in the system.
We've got the SEC we've got the FDIC we've got a bunch of regulators I'll let you know the syndrome which some people around here really because they -- all that does make their life more difficult to do business but.
-- windy and -- regulator.
Well look there's very strong argument for clear more concise regulation I feel that as a business person.
And you want a clear set of rules but -- -- Jamie Dimon fellow Greek American but let's also be -- here JPMorgan all the big banks have also hot engaged in a fierce rear guard action against any stronger controls on Wall Street we talked about the money being spent here we are two years after Dodd-Frank was passed.
And more than two thirds of the rules are still not in place.
You just saw you mention the fact that money market regulation after -- bailed out the money markets has been beaten back.
That 300 trillion dollar derivatives market is still in the shadows.
All across a marketplace we've seen very little progress and I think.
Liz here's the -- in the wake of the -- you know most of us learn.
From -- consequences of our mistakes if -- in business.
And you take a big -- -- you fail you Larkin going down at a -- well and and you act differently in the future in terms of how you deal with risk but these big boys.
Were bailed out and therefore they never really felt compelled to change on the economic front they bounce back while the rest of the country struggle.
Compensation hit record highs and Wall Street in 2010.
On the legal front.
Very little in the way of consequence.
Settlements that are -- guy Rabin.
But let me -- because we've only got a few more seconds but -- shares recently.
The new reforms to try and protect money markets.
That didn't work in fact it got shot down by some members of the SEC both Democrats and Republicans and chairwoman Mary Schapiro had to give up on the vote.
Yeah it's unfortunate because we know what's happened there's been.
Lots of bailouts by parent companies of mutual funds and the government had to step in.
To stop a run but -- and -- and what we need is criminal enforcement.
Where there's real wrongdoing and we need civil penalties with real teeth -- -- there's deterrents wouldn't -- reading stories like money laundering price fixing.
Bid rigging.
And that's pervasively bad for our economy.
-- markets everyone should read this on the bed in the Huffington Post by -- and to Levy as we said that first line.
Says quite a bit thank you so much we appreciate the commitment to be -- you have happy Friday any time actually is the chairman of the financial inquiry commission that crisis inquiry commission -- --
