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AFL CIO president Richard Trumka is -- 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 -- unions have a stronger say than the United States senate over who heads the new bureau -- to regulate our economic activity.
Exactly whom will mrs.
Marin protect consumers are the unions as -- 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 one.
The financial services sector is constantly making innovations coming up -- 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.
GMAC what is the Wall Street -- -- the banks think about this this is an agency funded by the Federal -- -- the congress can't do anything with its budget.
It really will have no accountability whatsoever and now a professor Warren Harvard professor wan they actually show up as the head of this without even a senate confirmation vote or an FBI background.
Which 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 and a recess appoint by the -- -- deficits are never see that but getting back to the point -- have.
We may see another.
Person other individual Raj date.
Who's -- McKinsey Deutsche Bank Capital One executive he may come men and set of Elizabeth warrant that that board by the way.
Does have to answer to the financial stability oversight board that Marvel Comics super -- -- for a number of financial regulators right so there will be some rule making oversight -- but still Wall Street doesn't.
And -- 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 against.
It was -- -- was gonna go easier you just because you're here.
Have to accept well okay and you didn't think that would not have accomplished just because -- here.
And I -- shattered I shot 171.
Recess appointments of that take that off the table it is your guess was right.
The Republicans just don't want this consumer of protect.
This board in place so it -- Elizabeth Warren now she is unlike bush who put a lot of foxes watching in the -- she really will -- forces it was her idea to begin with why shouldn't.
CB to have this isn't a lesson in history that a centrally planned economy is never as prosperous as a free one we do we wanna turn into east Germany or Eastern Europe what -- Harvard trained bureaucrat telling bankers how to invest and merchants what the cell.
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 Annette this is about preventing.
Monitoring system to make sure that -- this never happens again.
And this is about the government telling people how to engage and what should be there 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 put limits on what innovations that we can have.
Aren't these things -- stifle the economy from a president who he was with David.
I'm not Europe -- two weeks ago said the free market produces more jobs that the government yellen the unlimited.
And look at just rule making coming out of Washington Boe staff of the economy I think Wall Street will ignore -- I think the banks -- ignore.
The consumer protection bureau and the lobby -- changes made as they go along.
How much -- the president O 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 stand 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 -- -- -- prevent financial meltdown that they -- the last time around because the regulators were in the pockets of the -- -- of the it.
The big Wall Street banks laughs -- never -- -- his job at this time.
All right -- Point good point jobless claims are up again this week -- 427000.
People now seeking unemployment benefits.
How much of that is due to the endless new regulations passed and -- Dodd-Frank.
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 let 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 -- -- -- you're gonna get less swiping if you limit what the bank and collect they're gonna have less incentive to want to work this network and make it out there and easy for you to spend your money.
Just like when you cap ATM fees 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 yield Tellme.
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 a swipe fees goes up the number of people using debit cards will go down the reason we even have these white pieces because of regulations that take money from them.
Right Skinner I'm not current for the banks okay look.
That there there are usery laws that we put in place that consumers that are going to be hurt that customers and we -- let's face a judge this was a big lobbying battle between the banks.
And the retailers and the retailers and a small businesses who are getting killed when it -- it went from ten cents to 44 cents first wife.
I mean you know there there has to be if not sought protection so that the.
I hear you saying there's aren't you know dancing it's important went for the for the question is -- is in our consumers -- be helped I think retailers are 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 a -- -- make an up close -- 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 that's going to work until it's put in place and so that's unintended consequence we're gonna have to possibly an annual -- -- our debit cards all right then yeah.
And delayed the -- All 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 -- -- -- the original dot frank.
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 his.
Fair and reasonable.
As for what's fair I have no idea what fair is except what two people mutually agree upon and -- 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 45 it's well Nancy what is the right price how do you figure it out and how it's a bureaucrat -- The last word we got about thirty seconds how can you decide or the Democrats decide the -- -- -- decider Elizabeth Warren -- Barney Frank decide what's fair.
Somebody -- side and so let's let's take a look at.
The market that the debt -- gouge us okay because these are being that all the buildings are exempt from this if you look at -- I would look inside and I'm not I'm not saying I'm not supporting the banks here -- -- -- retail as a 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.
Back with the plain truth.