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Louisiana Senator David Vitter weighs in on the Senate’s questioning of Fed Chairman Ben Bernanke, and whether his plan is moving in the right direc...
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He question the Fed Chairman earlier today joining me now Republican senator.
David data from Louisiana.
I was watching senator thank you so much for joining us.
Our -- with -- after the speech you didn't concentrate on the Fed's stimulus so ongoing stimulus program you wanted to focus on.
But Elizabeth Warren was talking about too big to fail you say is alive and well and the basically not a lot has changed since week.
First got into the financial crisis.
Yes I think it's noteworthy that both -- focused on that and Elizabeth Warren on the far left focus on that.
I think there is a growing bipartisan.
Consensus -- not sort of define the spectrum of the banking committee made to the senate.
I think there is a very growing bipartisan consensus.
That's too big to fail is alive and well -- a problem and it's giving the mega banks a big taxpayer funded subsidy.
Essentially and oh by the way not surprisingly.
-- growing significantly in our market share since the crisis.
Well you know the Fed Chairman in response said look we're moving in the right direction that he believes in time.
Some banks -- voluntarily reduce their size do you buy that.
I down I think the market has already digested everything he's talking about.
And there conclusion its conclusion is too big to fail still alive and well that's actually been -- defined.
By a number of different respected research houses in terms of essentially a subsidy to the mega banks so we have the mega banks but on the other side of this.
The smaller banks say they getting the short -- and all of this.
Yeah and are going under at an alarming right.
And as I've told the chairman you know even if you're right even -- were eventually.
Gonna get there that's three or five years from now.
The damage is gonna be done to a whole lot of community banks which means a lot across America particularly smaller and more rural communities.
So so that you think the Basel III which the fed chairman's seems to sign up to it doesn't go far enough what would you like to see.
The job actually reach that were quite a bit -- Sherrod Brown Democrat from Ohio on the senate.
Banking committee to talk about higher capital standards and basically we think two things number one they need to be higher for mega banks.
Higher than what -- Chairman Bernanke has done already and higher than Basel III and they need to be a lot simpler and more transparent.
And less easily game.
The Basel for it.
-- -- the banks.
Most notably JPMorgan CEO Jamie Dimon says you stop doing this we have already starting to lay off people but having to sell off assets to meet these requirements and in the end.
The whole thing back fires have you respond.
Well you know doesn't surprise me that Jamie Dimon is in support of a big taxpayer funded subsidy.
-- his institution that's what's going on so it doesn't surprise me of that but he favors.
But does he has certain elements of truth in there that.
Ultimately small businesses and consumers won't be able to get the loans they want from the banks because the banks are having to keep more money back.
Now I don't think so first of all.
A lot of small businesses and consumers have difficulty now.
In terms of dealing particularly with the mega banks secondly I think it's gonna change the mix of institutions.
And these signs mix of institutions not the overall level of activity.
Finally we have the automatic spending cuts due to kick him on Friday senate is it gonna be -- economic Armageddon that some of predicted.
I don't thanks you know in the real world.
This is not even a spending cut its -- decreased -- -- spending increases so once that really becomes.
Known I think all of these dire predictions prices.
Will pass now I do agree that it is not the best way.
To handle things with across the board cuts.
And we should replace these thoughts with other cots in the same level of -- same level deficit spending but give the Pentagon give others -- much more.
Flexibility.
To minimize impact.
Minimize.
Hurt vs maximizing which is basically the way -- man all right we're out of time thank you so much senator bidder for joining us for -- --
