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That -- Harbaugh next guest says bringing back -- depression era Glass-Steagall law could lead to serious problems -- for the banks that are effective but also.
For the public joining us now is -- SEC chairman -- Now CEO of -- on the -- -- -- thank you so much for being with us.
I saw -- luck -- we've heard the arguments Ford against -- -- Steagall.
What's your main contention -- this.
You know -- what's wrong with splitting up the banks from the commercial side to the investment side and ms.
Elizabeth Warren said.
Let go ahead and gamble but -- doesn't do it -- FDIC insured money.
The fact is that bags Ken gamble with the FDIC insured money so this is an incredibly bad idea.
You -- Keep changing the rules on businesses.
Because the costs to consumers.
Will be extraordinary.
The fact is that banks are ruled by safety and soundness standards and that's as it should be.
-- -- say that in the wake of what happened to to trigger the financial crisis which is the very basis.
But these proposals I mean they would -- they exercise sound banking practices.
They didn't exercise unsound practices in connection with securities activities they bought and how old on the sound investments.
And this bill wouldn't change any of that.
That's -- thinks he'll say -- has actually no relevance.
As to what precipitated the financial crisis so should there be any rules of old -- from your your side of this hobby I mean.
You know -- banks have gotten so much launch.
You could argue that by repealing Glass-Steagall in 1999 they.
They did -- as a consequence create -- banks that needed bigger bailouts.
Well they they only repealed the portion of Glass-Steagall that -- you couldn't affiliate with firms that did insurance.
Did securities but the fact of the matter is.
That whether an organization -- large or -- -- past the play by the rules and a pass to operate.
Safely and soundly that's where regulator should focus their attention.
So what about capital requirements are you a supporter of that raising the capital the banks need to hold on their books against the they would be you know the risky assets that they may have.
Absolutely I think higher reserve requirements.
Will provide the public with great security.
I wanted to get to this to hobby we just have time the SE.
SEC lifting the ban on allowing hedge funds to advertise for -- to the general public for the first time in eighty years -- -- so was that you know the public will be taken in by a -- what are your thoughts on not.
Hedge funds being allowed to advertise.
Think the congress passed the jobs -- they knew what they were doing and I think there may be some instances of fraud but if so.
I think the SEC will aggressively go after them this is a long needed change.
That brings modern technology.
Into play and securities transactions.
Hobby as far as regulations on banks how would you mentioned before Glass-Steagall could cut the consumer ultimately.
How does -- -- -- get -- by those regulations.
If you -- pulled the rug out from under all these institutions.
Than they have to read.
In -- are all sorts.
Well walls and separations.
The cost the financial services -- increase astronomically.
I kinda makes sense doesn't.
And I Harvey Pitt.
Former SEC chairman with -- -- the partners CEO now thank you so much for joining us.
Pleasure to be with you appreciate it.
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