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We've mostly been bringing you news from Washington DC about health care but there's another bit of a battle brewing and that is.
Involving a regulation of over the counter derivatives right we're talking about these things that credit default swaps and some of the other derivative items.
I got some of these banks and so much trouble.
There -- some that say they should be mandated on the exchange others surprisingly little bit like Barney Frank -- we can leave them over the counter as long as a registered.
Joining us now from the White House is Gary Locke is secretary -- the US Department of Commerce we welcome secretary -- thank you very much.
My pleasure I gotta admit you know I'm a little bit surprised on the course last week I was at the CME group doing the show and I interviewed the vice chairman of the CME group Leo Melamed and he pointed out that when Lehman went bankrupt at one point one trillion.
In notional value derivatives.
On the CME and that all covered and all were paid you courses make indication the exchanges.
I'm a little bit surprised by some including.
Barney Frank who were saying.
That we shouldn't put these things over and exchange what's that position.
Y I I'm not familiar with the -- and Barney Frank's position and all the -- that goes into it all I know is that we need reform.
And does so much of what we have in place today -- really held over and really designed in the 1930s.
And so much of the financial markets have become so much -- -- sophisticated I mean things like credits to small a default swaps and derivatives.
Those were I mean hardly even known back in the 1933 from the forties and so we really need to look at.
Overhaul of all of these regulations there too many gaps.
And there are so many.
Areas that are completely non regulated right now and as a result that we have all suffered from this failure of oversight.
Of the regulatory system that has hurt.
Individuals hurt families and a lot of businesses who now can't even get credit even though we've been trying to shore a lot of these banks.
And I can -- -- so many business people are coming up to me and saying.
They've got great credit why can't they be able to get alone from their neighborhood bank acquires the government putting all this money to banks and stop filtering down to them.
So this whole.
Financial system has to be restored we have to have confidence and it.
We also have protect consumers and that's what the president is really focusing on as well as giving more regulatory authority for some of the existing organizations.
A little bit of consolidation.
And also making sure the lot of the loopholes in the gaps in in coverage are now address.
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