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My next guests were asked by senate banking committee chairman Chris -- to work together to find a bipartisan solution to financial reform.
Now that senator -- pitched his own bill do they think it can be called bipartisan and what did they see ahead on the road to financial reform.
Will we all have our -- again another bail out one day that happens again for the big financials don't mean out of Fox Business exclusive joint interview.
Our Republican senator Bob Parker of Tennessee and democratic senator Mark Warner of Virginia welcome to you but thanks for being here.
-- senator -- advocate with you banking committee chairman Dodd unveiled its financial reform bill yesterday you know what in -- statement you said there are policies within the bill.
That you cannot support.
What are those policies and -- can't support them.
Well look where we're up to about seven battle amendments now that are constructive amendments to get -- place we'd like -- big -- the -- -- mark -- -- -- here to gather.
Senator Warner is that there are sections of the -- we spent probably.
There for months on to get ride and I think one of those as orderly liquidation the other systemic risk council.
There's -- technical changes that we both are working on but we do know that those two pieces of the bill.
Work done -- -- -- -- and I'm glad to be able to work with Mark Warner.
To make that happen.
Senator Warner let's talk about orderly liquidation and I and I believe senator co worker -- new senator Warner has had said you know what that's what we need to call it.
Because we need to let the big financials know that guess what you will be liquidated if you run into trouble through bad risks you -- but.
Do you not feel that there is anything in this bill the Dodd bill that really contains that idea.
Well actually I think in the question of orderly resolution trying to make sure that resolution would never be chosen by any rational management team now -- -- I think we threaded the -- fairly well let me tell you -- their -- this bill salute and a lot better -- -- because Bob corporate took the time and effort.
-- -- -- -- -- -- -- -- -- -- -- -- And I think to make this much more centrist -- there still areas where we need to make more improvements I agree with.
With -- quarter on that but what we've done is we've put in place requirements for large system it firms systemically potentially risky firms.
Have higher capital requirements to have convertible debt to happen.
Actually -- plan in place Michelle how they can go to resolution.
We put a strong preference they're forced bankruptcy.
So an -- and making sure that the taxpayers would not be exposed we've tried to put one area that's not a welcome back to the table.
In fact -- judicial check to make sure that.
This would not be pushed through for any kind of political reasons resolution so at the end of the day we've got a resolution process or dissolution process.
That again won't mean management will be toast shareholders will be toast and anybody again we're actually making -- business -- -- -- I they would prefer bankruptcy as a might be some white -- the other -- -- the bankruptcy when we're talking about the process that's.
That is if it was ever invoked in terms of resolution would mean literally the -- receivership not conservative -- But senator Parker -- YouTube are working together I'd love to see this two shot about the view because this is what I think Americans truly do want to see is bipartisanship.
-- contrary to what you here -- the echo chamber of a lot of news reports and things like that that everybody's beating down on anybody who voted for anything that was democratic but.
Senator -- can this be looked at as bipartisan if it was Chris Dodd who then went ahead and put this forth and now it's going to committee.
Wow look at that and I think it was a simple issue of math it was beginning to lose some some Democrats on the committee with the negotiations that.
That we were having I think he felt under the gun and and so look mark and I have had bipartisan meeting for a year literally bringing in people -- look at this.
I have a good sense of where he's willing to go -- this bill I think he has a sense of where I'm willing to go.
And I think what we'll do now on the committee as well offer constructive amendments we -- -- say a bill -- he wants a good bill passed.
And I think we have the opportunity now even though wasn't entered that is as they -- a real bipartisan bill we haven't we have an opportunity to make it that way and so that's what happens -- over the next.
Couple -- what let's bring lead analyst for the -- overall list that are lit -- just obvious that -- I mean you know.
We wouldn't be here Bob -- hadn't -- been willing to take some arrows.
Among them back in saying he still gonna try to work this part of this process and I actually think that we were.
Very close I think a lot of and you heard senator Shelby say 85 to 90% of the bill we've got some common agreement.
Ice just desperately want to make sure we end up with a bipartisan bill here because this is too important for the solutions have to be -- partisan.
One way or the other week we hope to put in place rules of the road for the next thirty years and I think that's going to be better than a bipartisan way and frankly we'll probably be a number amendments that that.
It's an up or -- put through that I'll support and that's kind of how the process works we've now got a workable item to work through the process.
Well one of that one of the rules that might go through is the Volcker Rule named after Paul Volcker the former Federal Reserve chief.
Talking about limiting or excluding proprietary trading at the big financials such as -- Goldman Sachs or.
Or some of the other names -- -- good look at Morgan Stanley where they can't use their capital port depositors capital to trade for their own books now.
Are you -- a proponent of this senator Parker and if not why not.
Actually what -- -- about language is something a little bit but he says this is that he asked that regulators.
To look at the components of the vocal role operating private equity hedge funds.
About candidate that's related to -- the bank -- -- What negative consequences that is having him and then put rules in place.
I would probably propose a slight change in that is to -- to look at it not pre supposing that it's negative.
But that's a slight change in my guest says that it's possible that senator Dodd the senator Warner that others on the other side -- may not accept that.
And then we actually look at best.
You know we always do best round I think we have our facts together and that's what basically this would do so my sense is even on that issue.
Which is giving regulators the opportunity to really -- -- -- this.
See if it's creating any kind of negative effect and then make rules on that basis that seemed like a -- -- and all of us today.
And let me just -- Somebody was in the private equity business in the venture capital business.
Before -- and politics a lot of this is.
-- easy to -- the macro level put a lot of this is tough to define where along the continuum from private equity tip.
Financing with -- you draw the line on private equity where do you draw the line between proprietary trading and making a market if you are taking companies public.
So I know I have to agree with Bob on this when we -- -- Save these areas ought to get special scrutiny but we shouldn't presuppose what the regulator should do and candidly finding the way to define this.
-- and we saw in the of the hearing that it was even those who advocate the -- it's tough to make a real definition out there and and that's what with the regulators really we got.
About very short time here you were both successful businessman in your pre congress -- that's why we like you hear you understand capitalism on both sides of the -- Are clearly Americans eight million are out of work because of the financial crisis where.
People polled their chairs up to the -- roulette table made bad bets and now we have to bail them out.
It's a huge problem when all -- said and done if this bill becomes law will Americans be better off in the end senator -- for you first.
Very much -- thanks so there are still things we need to do.
And we're going to be -- amendments -- senator Warner and I've been talking about numbers of things that we think need to be added to the bill tonight that the case but I think both of our.
Goal is to ensure that when the bell passes and it NASA's.
What you just said that what you just -- is yet.
And -- just that yes if we don't end too big to fail.
If we if we don't make sure that.
The American taxpayer will never be exposed again to financial mistakes and we haven't done our job.
-- and senators Mark Warner of Virginia Democrat and senator Bob cork or Republican of Tennessee.
Promised to work together continue on this because we're very interested in watching it happen thank you very.
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