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Our next -- -- -- a letter to the Securities and Exchange Commission calling for a more forward looking approach to financial regulation.
And the SEC responded joining us now from Capitol Hill the Delaware senator Ted Kaufmann senator Kaufman it's Brian Sullivan thank you for joining us.
Hey Brian thanks for having me I think there has been a great deal of frustration on part of the American public for a lot of reactionary movement body.
Two problems how do we get ahead of problems how to we solve them.
Before they become them.
Actually Brian that's really what my letters about.
My -- supposedly about dealing with.
Problems before they become problems and what's happened here in -- and -- that I some other concerns but the main thrust of this -- is the following and that is.
For years we've had -- based system.
And then in the last two or three years we moved to really a computer based system.
Where we have these incredible digital visual -- work trades go much faster and all kinds of new things are happening.
So what I asked the latter for the securities exchange commission -- take a look a basic look and market structure started we kind of -- zero based analysis.
This is not about regulation -- -- this is about doing -- review to find out where we -- what's going on because one of the real.
Driving forces behind the new high speed computers in the rest -- it is to increase liquidity and I think that's fine we should -- very.
But what we're in danger of doing this is replacing fairness of the ways is the average trader get a fair deal and I'm not prejudged him that I'm just saying the SEC should look into and check it out.
Yeah I you know I think we look at housing and during the housing boom you know there are some people that called it some people -- I'm not gonna say some people are smarter than others.
But the numbers were fairly staggering and now everybody's up in arms about how did we get here how did Wall Street securitized this -- mortgage lenders do that.
Why should we have faith in congress that that.
Senators and and representatives are going to be able to spot these problems when the biggest bubble right as we now know in American history happened right before our time.
Hey Brian I'm not call for that.
-- -- that's exactly what I'm saying that's why we have the Securities and Exchange Commission that's why CFTC.
I think what you're gonna see congress emphasizing going forward beyond what I'm talking about is getting the agencies in place and they look at the real problem here.
In my opinion and not this but the number of things go back the junk bond go back to -- TC go back for the rest -- -- the regulators were not on the -- And there's a number decisions were made in the last three or four years.
Bernie Madoff being the most dramatic but also the capital asset ratio what happened to the rating agencies with a regulatory agencies just didn't -- and -- was basically -- theory.
That we don't need -- regulators.
And the base of the regulars pulled off the field's -- I couldn't agree with you more I am not telling the SEC what the -- and I -- not telling us -- do I'm just saying SEC here's an area.
We should get your regulators to look -- -- this and come back and tell us what's really going on here as we move forward.
Because just like the other things you talked about there's an incredible monitoring 7000.
Trades a second going on now.
And and that in the -- and we and and unfortunately unfortunately have this bad experience with flash orders.
We know the SEC was approached by NASDAQ and bats and asked whether they can do flash -- the SEC said fine.
But -- came out in public that some people will get to see -- bit nasty for others all of a sudden that's NASDAQ turned around and -- -- turned around so.
That's exactly binding on -- same page.
I what I wanna do with how the regulatory agencies do this -- look into it and check these things in advance.
I want to switch gears completely the president along with Gordon Brown Nicholas Sarkozy.
Coming out grand denouncing Iran -- we have some headlines I -- you're on your way I don't know if you saw these.
But you're on the Senate Foreign Relations Committee suddenly get -- headlines senator.
-- first off.
Iranian leader Mahmoud Ahmadinejad shot has canceled a planned a press conference today.
But -- rain or Iran confirming second enrichment plant.
As a quote yeah absolutely right those headlines crossing for the Wall Street Journal moments ago.
What action do we need to take on Iran.
I think the president's apps are one of the most significant things about this in my mind what you did it with -- Gordon brown and Sarkozy.
This we're not gonna be -- ran one on one when Monica get them do we have to do one on one we need to bring in the international communities in fact the browns are they're number one.
A -- had hidden nuclear facilities.
But what a shocker.
Clearly you can have an -- -- nuclear facilities -- -- you know it I mean it.
Then after the smartest.
Group with pitchers aren't dumb enough to put on the facilities out where they can be attacked.
So the idea they have hidden facilities is nothing new about that and the fact -- -- minute job is saying you know we're not gonna back down everything I think the real secret here.
Is exactly what the president said in the beginning we've got to get a multilateral -- think we've got to get Russia.
In the in the box and -- is -- -- some good things and let me start and the other person got to get in the box crimes China.
China is playing this game -- -- -- and they're trying to maintain that oil resources -- all kinds of bad books that and what -- have to.
D'antoni called -- and that and the fact matter is the biggest probably haven't ran.
Is that is that -- have all nuclear weapons.
Then all the Arab countries Saudi Arabia Turkey not and target on our country that Saudi Arabia Turkey Syria I met with us here Asad.
I met with -- -- and and and -- -- these guys are not gonna sit by and -- -- country develop a nuclear weapon and then not have some protections that we -- and we -- an incredible nuclear arms race.
I think most sort of review on the issue of Russia.
And on the issue of China specifically some possible arms trading between Russia and Iran that's been a hot topic as of late has really been for the last few years.
But we look at our -- now we look at our oil needs senator right we look at our oil needs Russia.
Really was Saudi Arabia the world's biggest oil producer we were like sensibly not only -- Chinese imports but on China buying our debt.
What possible bargaining chips might we have around -- with China and Russia.
Well first thing is you know we didn't just arrive here is how we got here we got to stop the things that got us here so we still that's line.
Deal -- the deficits import and that's -- deal with climate change and -- that's by doing some energy.
We should have been doing these things last thirty years so we finally got to get around that number one number two is we're not gonna do it ourselves with China.
But what we're gonna do as a multilateral group will not expose the child is doing to what's going on so everyone realizes where they are what they're doing.
So I think going to China wanna wanna say hey we modify your behavior has never been a good price which time he got out multilateral approach and that's the work -- Russian.
And that's gonna work for China that's gonna work with -- neighbors in the area.
So you're you're the king of breaking news today senator because of the house just passed -- stopgap spending bill which will allow the US government to avoid a federal shut down October 1.
It now comes to you in the senate will you pass -- or vote for a passing of the stopgap spending measure.
-- yeah I mean I'm not that that that's a no brainer.
We got to ask got to do it got senator on why not -- and I don't on how to send a promise that alpha agreed to apply wasn't good question.
I just me that I think we'll get through by the way when -- -- it's a no brainer it's no brainer for me.
I'm sure that people are gonna try to use this for some kind of political gain always happens whoever's in charge -- say oh my god how did we get here.
So not hot it's a no brainer for me but it's not it it it is going to be a complex that is a good question I had -- -- I guess a lot of bad questions so far my career so you're not let anyone that's why did it get a rain over.
This weekend but I'm planning on going to the NASCAR race on Sunday -- -- -- so.
Pray for some good weather in Delaware I it doesn't matter because you're going to be -- a great facility -- -- a great race.
Having the time in life in general -- who cares I'll pick up some insurance and credit cards and I'm down I'm getting at editor thank you very much idea of getting over that that don't even get.
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