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Our President Obama an hour or so away from meet with big CEO did -- address the fiscal -- Wall Street CEO sovereign not on the list not invited.
How Scott is the president of the committee on capital markets and regulation he joins us now.
Have an industry bipartisan.
Trade group type thing you know it looks like Obama's relations with the banks have improved he went from bashing them to really snubbing them today that he looked way to make peace.
Well one can be hopeful error I think Dennis the point -- peace has to be made it's sort of like the same situation of fiscal -- Both sides have to get together and figure out the best way to go forward us.
Do you think that the regulations and about to count as an onslaught of Dodd-Frank regulations.
The consumer financial protection board which is scared of the -- cut off thousands of small lenders.
How are these regulations aimed at fixing -- they aimed at punishing.
Well I think in large part they are trying to fix -- system that I think in some sense some cases they've gone overboard.
So they're trying to do good but there may be doing harm I think capital regulations an example Dodd-Frank capital requirements -- -- courthouse so.
Well we want to strengthen capital impacts would have been better of some of these banks have more capital I think everybody agrees with.
But the devil's in the detail hobby you do that and do you put on such onerous capital requirements that your.
Basically -- lending any kind how are they.
They cook were risking okay it and a lot of people are very concerned so I think we a lot of critics from both sides on capitol Sheila Bair -- People from the Bank of England who had a role in -- them.
I think people think we need a fresh look at Basel -- K we've been using this system that didn't work during the crisis.
I think before we rush to Basel III in Basel for.
Step back deserve better way to do the full imposition Dodd-Frank is gonna make -- recovery better or make our recovery worse.
But again I think it's mixed there's certain really good things -- -- I think Dodd-Frank -- -- for instance central clearing a kind of derivatives are very important reform.
I think -- -- it's good to strengthen capital you don't wanna go overboard.
About -- -- our problem yet the vocal role okay.
The vocal rule committee is imposing costs on the industry which says that according you can no longer trade -- on account you have to get rid of that business even though that business had nothing to do with the meltdown nothing to do and worse and that's the problem -- -- trying to.
Student you know sniff out proprietary trading.
You're hurting market making which is central to the economy and central global markets.
And they haven't figured out a way you have to us stop what they don't like him still permit that won't do we already know 100% of the details of Dodd-Frank and what it's gonna do or how what percentage is not known at all are -- our problem is that a large percent of just -- -- A large percentage -- -- other stole a substantial number of rules that have not been adopted majority of rules.
There are 300 some rules majority of not been -- but even more.
These rules are subject to attack in court okay for lack of cost benefit analysis to -- the rule gets promulgate and it can be tax assessed William court.
So we have a long period of uncertainty ahead of us -- My basic kind of a tough sweatshirts on one hand they're being told to to tighten down on everything and then -- being yelled at for not lending.
Are banks that continue to be bad guy from the a -- illustration.
I hope not -- because you know the fact of the -- -- we need Wall Street for economic recovery there's no way around -- -- the financial system is at the heart of our common were beaten up one of the engines -- the Philippines that is -- thank you so much for being with us Hal Scott.
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