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Former FDIC chairman Sheila Bair on when the government should get involved with company mergers and acquisitions.
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Lauren -- Lawrence and -- as an exchange today to follow up on this up possible merger of office Max Office Depot.
It comes less than a week after Berkshire Hathaway and three G capital spend twenty billion dollars acquiring Hynes.
Which is a big story at the time in those deals adding to a month.
That -- over a 140 billion dollars in any activity.
So with that market heating up over side.
-- to follow that's where Sheila -- comes in the former FDIC chair.
Author of the book bull by the horns fighting to save main street from Wall Street Wall Street from itself she joins us from our.
Up here in Washington DC and well behind steel in particular.
-- got a lot of attention because of the allegations maybe somebody was out ahead of it and what about that idea that people are trading before.
These emanate deals or these mergers are announced not exactly new but are we doing enough about.
Right hello this -- insider information it's illegal given day it should be prosecuted very vigorously.
Its latest product around that's that's kind of a sideshow to what's going on there about carry out other ports are problematic healthy for the government -- -- -- the -- problem.
On the idea of anti trust which more and.
Brought up.
Are we did is it -- is our balance now in terms of regulation.
And how we enforce that regulation vs our concerns about people have been too much power and -- -- industry -- we -- at the right point now in terms of that balance or.
Are we -- outside or the other too much.
Well but that's a good question -- let me step back -- just say that I think a lot of this MNA activities being driven by a lot of liquidity in the system which obviously is serious about growth of government policies.
To push a lot of that money into the system to try to get this type of more economic activity going so.
After abusing the system both liquidity for the government kind of try to commit a micro -- has been deployed.
Wedding guests so problematic.
But obviously sheriff there antitrust issues the government should be involved -- -- their bank.
Murdered in NA activity there's stability issues if you -- issues community service issues.
The need to be look at carefully.
Episode we have traditional mechanisms in place for -- view this activity but I think.
Again a lot of this is what the government is want is set -- come in and try to give -- all the back now would make much sense I hadn't.
A lot of evidence of early interest it puts you should the government essentially creates I guess they're low interest rates -- one of the big -- -- government creates this environment.
In west companies wanna get together one emerge and as you say the system is flooded with liquidity so that they should just stand back and what had -- I mean that's affecting.
He had to -- -- let me get this violence some regulation what do we have so every day there -- systems in place and that they should be fully use and they haven't always been in the past and I must say it's not just the government is shareholders and boards that need to be.
Careful -- carefully analyzing this activity ending.
Corporations are sitting ought to catch is burning -- -- in their pocket know some of them are -- fence you're anxious to get out there and deploy it.
But make sure the economics makes sense you're not the spending money because you have it right I think that's really the issue and that the boards and end the billboards in the shareholders -- themselves have a big stake and that should be looking Canada does the governor.
Let -- ask -- one -- -- general question before -- let you go and that you're obviously not at the FTSE.
Any more so maybe give us an outsider's view or somebody just what are what where do you see regulation generally speaking going in Obama term number two will there be more.
Of -- focus stood back off a little bit compared to the first term are brought.
Quite severe financial reform we -- -- to get it done there you know adolescent half of the Dodd-Frank rules we've been finished yet some of them haven't even proposed and I think.
The uncertainty DA regulatory uncertainty hurt the financial sectors so the rules need to get finalized and it be simple -- be effective.
I think -- a lot of these rules -- into complicated bureaucratic and not only getting incremental benefit of that so.
I hope that's a priority for this -- get them done.
Let me know what the rules aren't in the system will -- -- -- that's my hope no one will actually happen I can't say are out of -- that's always the case to disclaimer at the end of it doesn't bear.
Formally the chair of the FDIC thanks as always for coming on sure.
