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Eighteen months into his appearances and no change in the rules of what's.
Let's get peace -- through that are good -- that we can get changed and then -- can.
Demetrin Veal with whatever it is that happened on Wall Street last week and we must we must deal with Fannie and Freddie.
I am looking at weren't frustrated -- months after the meltdown congress is still fiddling around she says not a single on a single new rule or regulation.
To prevent a repeat of disasters he's he's coming and soon -- we don't act fast and now.
Outgoing senator Byron Dorgan the top Democrat from North Dakota -- in frustration.
Even criticizing his own party for financial reform Billy says.
Isn't tough enough senator daddy thanks -- So where does that stand right now on this reform can you update us.
Well it's on the floor of the senate been a long and tortured trail to get amendments and have some debate them my expectation is that the bill will finish -- sometime next week in the senate.
So a couple of things I want to get updated in our minds -- one is the that fifty billion dollar bank rescue fund that that would be paid -- buybacks.
We're not keen on that that they've succeeded in getting that removed.
On so what happens is that definitely out of there.
I guess I mean the Republicans won of that removed.
I wasn't a big fan of it but I wasn't opposed to either.
But to remove the fifty billion dollars to back through the banks would put up.
In the event you ever resolutions we have some funds to work it out it's into the banks putting it up.
Now without it the FDIC would put up the funny that's from the taxpayer to make much sense to me.
But what I would like to see.
As I'd like to see it too big to fail -- you're simply too big you got to pare back to the point where if you -- you're not gonna cause a moral hazard or.
-- an unacceptable risk to the economy for the entire country.
That's what I think we should do its interest you know -- it.
I always wonder senator if you're big and if they -- bag -- -- instrument we have on here SC guys say a couple of weeks ago.
There'd be no upside to consider downsized right and another words.
You want every bit too big and too cumbersome.
-- to deal with right because that saves your tiny from getting.
-- -- -- Yeah well you know if you're too big to fail I call that no fault capitalism.
-- how people describe these things as liberal or conservative I think the real conservative approach is to say you know what.
If we have allowed institutions to become too big to fail.
That means that they have the potential if failing to bring down the entire economy so we've got to come in and provide backstop for them.
It up the conservative position on that would be to say you got a pair of these things down so they are not causing.
A moral threat of great threat to the entire economy the same is true I think the conservative approach should be if you're trading naked credit default swaps.
Massive amounts of them speculating in -- that's not the kind of business that that represents.
Doing real business that's just gambling that's not investing.
Why should we allow that kind of speculative bubble to continue to build in our economy.
Toward the very least to make -- transparency and know that you are you all good points senator.
But what is it in my chains -- but why are Freddie and Fannie not going to be part of this.
Well the first of all they remember what that was offered the other night maybe last night it was.
Would simply have abolished Freddie and Fannie.
You you you can't do that without replacing -- right at the moment because I think something over 95% of the home mortgages are sold up through.
Freddie and Fannie they're not made by Freddie and Fannie -- sold up through them.
But look we've got to do financial reform and get this right to protect the country's economic future but we also have to deal with Freddie and Fannie there's no question about that.
Aren't you scenario a lot of these guys come in and out here is banking titans is rich guys -- -- And I get a sense from a lot of them that.
They don't want you to touch -- And which is probably no human nature and and and and to a man -- woman out of what they fear is that I have -- bad things are now whatever leads to problems now.
The cure is going to be more problematic than the disease is addressing.
And you're only gonna have to redress some of these various issues again and of course they're speaking quite so obviously -- -- would be understandable but.
What what do you say or can you -- to assure them that this is in the air and took -- to clean up around.
Well it's it should be and they should recognize it's in their interest I mean what -- what a reputation they have ever that the humorist Mark Russell you probably know Mark Russell.
In bad investment banking is to productive enterprise like mud wrestling is to the performing arts felt I had no.
Look we need investment banking in the country I think you just this march blood -- -- by the way but could -- I didn't mean that but.
But you know we need investment banks in this country they play a very important role but we've done some things I think in the last decade and a half and more to allow.
The creation of large pyramids with -- you know FDIC insured banks with investment banks and securities merged into one big operation and and then the creation of exotic to the naked credit default swaps among other things.
I think we -- you know we have -- say let's get back to real business here.
And I think a fair rules thoughtful rules of fixed some of these issues will be good for the investment banking community.
But they'll certainly be necessary to protect this country's future economic interest.
Senator you're one of the few adults of the room bear -- so of these departments logical some very good seeing you again.
Thanks a lot to senator Byron Dorgan of North Dakota.
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