Also in this playlist...
This transcript is automatically generated
AFL CIO president Richard Trumka is at it again now the union bosses pressuring congress to rush the appointment of Elizabeth Warren.
The head the Consumer Financial Protection Bureau.
A watchdog byproduct of the Dodd-Frank financial overhaul.
He wants this done while the senate is on recess.
Wow if unions have a stronger say -- the United States senate -- heads the new bureau back to regulate our economic activity.
Exactly whom will mrs.
-- protect consumers are the unions as -- a senate Skinner.
Here now our stocks business editor have my colleague Elizabeth MacDonald.
Radio host and freedom watch regular in the studio today Nancy Skinner an Independent Institute senior fellow.
And Suffolk University economics professor Benjamin Powell.
Bend it to you first are you surprised at all that the government is trying to get this micro manager of the economy.
Into her job while the senate is on recess because they know it will never happen if the senators who want to vote against -- can -- to the floor.
Nothing these guys do it ever surprises me.
But I really don't think that's the big issue it's not about the personality of who's going around it.
It's the fact that we have this agency in the first place we shouldn't have won.
The financial services sector is constantly making innovations coming up but new products we don't know in advance which ones are going to be successful which ones are going to be failures you need a market test for that.
Not -- are in Washington could approve new financial products just about agency regardless of who runs.
-- -- what is the Wall Street -- -- the -- think about this this is an agency funded by the Federal -- so that congress can't do anything with its budget.
It really will have no accountability whatsoever and now a professor Warren Harvard professor -- may actually show up as the head of this without even a senate confirmation vote or an FBI background check.
You know -- that they don't like it they never liked it they feel like consumer protections were already in there at the Federal Reserve the OCC and other banking regulators.
Wondering what -- a recess appoint by the way -- deficits are never see that -- Getting back to the point -- -- we may see another.
Person other individual Raj date.
Who's the McKinsey Deutsche Bank Capital One executive he may come in and -- Elizabeth warrant that that board by the way.
Does have to answer to the financial stability oversight board that Marvel Comics super justice -- for a number of financial regulators right so there will be some rule making oversight there but still Wall Street doesn't.
And what's he doesn't like anything.
Nancy you can't life as Democrats want the rule of law Democrats want accountability Democrats want the president's nominee confirmed by the senate right.
-- Richard Trumka girlfriend from the AFL CIO get his way.
You think I was gonna go easier you just because you're here.
Have to act well OK and you didn't think that would not have accomplished just because I'm here.
It's Saturday I shot 171.
Recess appointments -- take that off the table it is your guess was right.
The Republicans just don't want this consumer of protect.
The sport in place so it -- Elizabeth Warren now she is unlike bush who put a lot of foxes watching in penthouse she really will enforces it was her idea to begin with why shouldn't.
CB to have this isn't a lesson of history that is centrally planned economy is never as prosperous as a free one I mean we wanna turn into east Germany or Eastern Europe what -- Harvard trained bureaucrat telling bankers how to invest and merchants what this at all.
That's not what this is about this is about like if your house burns down.
When you rebuild it don't to put fire alarms and that this is about preventing.
Monitoring system to make sure that and this never happens again and the.
This is about the government telling people how to engage and what should be -- free choices to engage yes or no.
Yes this is voluntary capitalist -- acts between consenting adults they should all be legal the government does not know in advance.
Which ones are going to be successful and which ones are going to be failures they simply don't know therefore they should have put limits on what innovations that we can have aren't these things -- stifle the economy.
From a president who when he was with David.
I'm not Europe -- two weeks ago said the free -- produces more jobs said the government -- the unlimited.
And look at just rule making coming out of Washington -- staff for the economy I think Wall Street will ignore it I think the thankfully nor.
The consumer protection bureau and -- lobby to have changes made as they go along.
How much does the president -- Richard Trumka and the AFL CI EO and his Richard Trumka likely to get his wish the president would have to recess appoint her tomorrow before the senate comes back into session on Monday what do you predict.
You know I don't think that that's what his decision is this board is in place someone was gonna headed up.
Whether it's Elizabeth Warren are not I don't think the keys -- -- up at night worrying about that it's gonna happen he does not want another financial meltdown to ever had a really got really thinks that bureaucrats in Washington can prevent financial meltdowns that they -- the last time around because the regulators were in the pockets of the color of of it.
The big Wall Street banks -- I never got -- -- his job without this time.
All right -- Point good point jobless claims are up again this week with 427000.
People now seeking unemployment benefits.
How much of that is due to the endless new regulations passed and -- Dodd-Frank.
Yes another regulation survived as the senate failed to end the controversial swipe fee -- Which requires a cap and how much can be charged every time you swipe your debit card.
When will the senate wise up.
Professor and give the free market a chance to work and -- banks and merchants and consumers decide what these swipe fees are going to be and -- politicians.
I don't know when the senate would wise up and do that but hopefully the voters citizens start demanding more of it.
The problem with -- -- put a price control wants white -- you're gonna get less -- -- you limit what the bank and collect they're gonna have less incentive to -- to work this network and make it out there and easy for you to spend your money just like when you -- ATM -- you see fewer ATMs around for people -- same problems gonna come up here.
Nancy I think that you probably will agree with -- on this and obviously if I'm I'm from long he'll tell me.
The the folks who use swipe fees -- that the folks who use debit cards can least afford for their debit card to be taken away from them.
And if the swipe fees goes up -- number of people using debit cards will go down the reason we even have these white pieces because of regulations that take money from -- Right Skinner I'm not current for the banks OK look.
That there there are usery laws that we put in place -- the consumers that are going to be hurt that customize every let's face a judge this was a big lobbying battle between -- banks.
And the retailers and the retailers and a small businesses who are getting killed when it would it went from ten cents to 44 cents first wife.
I mean you know -- there has to be if not sought protection so that the.
I hear you saying there's aren't the no dancing it's important went for the for the question is who is in our consumers going to be helped I think -- -- -- -- likely pocket the difference and the banks will start to hit us.
With -- with a really obnoxious annual debit card fee just for accessing your own money so.
You know we don't like about this is Chris Dodd saying -- Dodd-Frank make an up close -- like statement.
Well we have to enact the bill just to see what it and how it's gonna work.
He said no one knows how it's going to work until it's put in place and so that's unintended consequence we're gonna have to possibly an annual -- -- -- debit cards all right then yeah.
And delayed the -- For two years so there are suggesting we hate uncertainty so what we're gonna put two more years of uncertainty -- Barney Frank didn't like it and abandon the original dot.
Frank then have we reached the point where we expect the government to decide what's fair and reasonable rather than things like supply and demand.
And the free choices of investors and consumers and bankers and merchants to decide what is fair and reasonable.
As for what's.
-- -- I have no idea what fair is except -- two people mutually agree upon and has an outside observer I've got to say.
That's fair but then there's a correction question what's the right price to make the market work.
And Nancy you say that has gone from ten cents to forty -- it's what Nancy what is the right price how do you figure it out and how is a bureaucrat gonna give.
The last word we got about thirty seconds how can you decide or the Democrats decide the rich trumka -- -- Elizabeth Warren decider Barney Frank decide what's fair.
Somebody cast aside and so let's let's take a -- The market the -- -- -- us okay because these are being that all the little things are exempt from this if you have -- thanks I would look inside and I'm not I'm not saying I'm not supporting the banks here and answer any retailers -- pocketed that the difference and the banks hit us anyway with another fee on debit card.
All right guys it's a pleasure Ben Powell Nancy Skinner here in the studio he Mac my friend and colleague thanks very much for joining us.
Back with the plain truth.
Filter by section