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tv   Lou Dobbs Tonight  FOX Business  September 2, 2017 10:00am-11:00am EDT

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i'm bob massi. i'll see you next week. [ woman vocalizing ] >> the new "wall street week" ." spirit welcome to "wall street week," the program analyzes the week that was and held position you for the week ahead. i am marie bartiromo. coming up in just a few moments, some of the biggest vos is in the start of will joint our round table talking about companies. and first dagan is standing by with headlines. dagan? >> maria, the u.s. economy putting on 100,000 jobs. with unemployment rate taking up to 4.4%. the strong jobs numbers pushes the markets higher. and the dow and nasdaq and s&p 500 closing in positive territory. they posted the fifth straight month of gain and nasdaq ending
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august at an all- time high. federal and local officials are trying to sort through the week of hurricane harvey. it dropped 50 inches of rain on the houston area and 39 people are dead and 39000 in shelters in texas. harvey making its presence known at the pump. one quarter of all refining is shut down. president trump making his case for tax reform in missouri on wednesday, calling it once in a generation opportunity. the president reiterating the call to slash corporate tax rate from 35 percent. to 15 percent and simplify the tax code. provide tax relieve to the middle-class in bric-a-brac profits from overseas. maria, back to you. >> maria: technology is the best
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since president trump's election victory up 25 percent. even with amazon and google contributing, some tech companies are opting to stay private longer. there are 160 properties valued $1 billion or more, including established unicorns like huber, airbnb, pinterest. and what is the next big company to join the unicorn ranks? joining my round-trip right now. brit moran is here. ryan williams is with us. and next door ceo and cheg, dan wright a veteran of technology. and thank you for joining us. dan, you and i talked about the start up roll. i want to get your take. give us the 30,000 feet. you've started companies.
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you ran yahoo and seed money from large companies go into some of these emerging names. what's going on today? >> yeah, it is an interesting change in silicon valley. faang as they call it. you have bigest companies in the world. but there are amazing start ups that take their time and thesis are three of them that are thinking much bringing hundred year companies and not flipping them. and building audience and brands and business models. that's not what we saw ten years ago. what is clear to me smart money is going deeper, and deeper in fewer companies that create mass evaluations and i have a chance to know the founders and amazed by the long- term view. you are seeing a shake out of the winners and the losers and that is a good thing. >> maria: you make a really
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good point. what we are saying is all these large companies, you see faang, facebook, amazon, netflix, google companies. they have their own investing funds. they are saying forget about private equity, we will invest directly in companies and you are a beneficiary of it because disney just invested in your country. how did that go down? >> the digital media and merchandiseizing company for young women. we have a business model, media and merchandise and real life events. but disney hasn't figured out how to tap in the young audience and we do that and they wanted to invest. >> is that a trend right now? you are seeing large companies say we can't do this on our own, we are going to put money behind the start of? >> it is hard to build these companies. it takes more than a day and 's hour. it's hard to take division of a
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company and go replicated. brit has 130 million visitors a month. where will you build that from inside of your own company? that is hard to do. we are seeing large companies ready to partner and invest as opposed to own or create something and you can see cadre. real estate companies participating in a marketplace that you didn't think would be open. i think it is a trend right now. >> maria: tell us about that. you just recently had a successful round. >> yes, we recently announced 65 million financing led by horrwitz and jeff jordan just joined our board. and i saw the session you did with jess and bryan and it was interesting to see that phase of companies becoming what it is today. we believe that cadre will be the transformation dimension.
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we are redefining investing and the same way amazon changed spending. ten years from now, we want cadre to be the catalyst of transformation in the investing world. and we are bottoming a exchange for real estate investing and transform who can how they participate. >> maria: you come with the experience and of the goods the real estate business having worked at blackstone. >> that was an incredible platform and experience and institution that built a great business. but at cadre, if i would ask you, what is the largest and profitable industry in the world? most people really wouldn't know the answer. it is real estate. it is 80 trillion industry. and you can see room sharing and car sharing with uber. but no one has done it with the biggest industry in the world. we are running an institution that is built on different principles.
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that is exciting. >> maria: your next door has become incredibly successful in the short period time. the buzz around next-door is huge. congratulations to you as well. what are you trying to do and talk to us what you need to do to get to scale? >> we believe we have a local social network. twitter to find people that are interesting and linkedin to connect to colleagues. there hasn't been a social network until next door that will connect us to people right outside that's the inspiration. our front door. 80 percent of the american neighborlieds use next door. the last round was billion dollars. and an interesting change, money is everywhere. you can get it from a venture capitalist or late stage investors or talk about a corporate partner.
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at the end of the day, what's important for us as we really try to fulfill these grant ambitions is to find the best partner. >> maria: we will take a quick break. stay with us, we will be right back. ♪ rethink what's possible. rethink your allergy pills. flonase sensimist allergy relief helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. flonase sensimist. ♪
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♪ >> maria: welcome back, president trump making it clear that the technology industry is now a central focus in this economy. with meetings with apple and google, we will see what they want in washington. we are back with our panel.
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and ryan, that is my question to you. you are a small start up relative to what we have on tax reform and the policies. what is the most important policy you would like to see coming out of the administration to help your business get to the next level? >> sure, the way we think about policy, we leave that to the experts. at a high level, the thing that is important is pervasive right now is innovation. innovation is good for our global economy, it's good for our domestic economy because it adds transformation, change, and opportunity. i cadre, we are innovating in real estate while more people have more access to build wealt wealth. the only way it was accessible because we innovated. the existing model does not work and we change would it from the better. the most important thing that needs to be pervasive in d.c. is
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innovation. >> maria: encouraging innovation is you want to roll back red tape, right? that's one of the things the president has talked about so far and office, eliminate the red tape. do you see that happening? is it easier to take the company forward? some people say that's why they don't go public. it is too much bureaucracy. >> there's a lot of friction in the bureaucracies and real estate. there are a lot of corollaries there also. if you really take a step back and think about the big industries of our time, they are deeply entrenched and real estate is an industry that's been built on some inefficiencies and bureaucracies for years. health care, infrastructure ,government. it is it a function much needing to take the marathon versus sprint to rebuild the companies that are very hesitant and resistant. the best companies are able to raise capital. in our case, we were oversubscribed in our last term
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and it was because our investors understand that this is a long game and transforming something that will not happen overnight. that's probably why more companies are staying private. they are not staying private or public. they don't exist. >> maria: do you agree with that in terms of the regulatory market? any changes you want to see? >> our industry is innovation and not regulation. we discussed that, we want things that help us move forward and faster and not slow us down. that's the general approach. next door stand part, we are at local community. we look less at what's happening nationally and more of what's happening locally. the mist of the national debate that's in everyone's mind today, their laws and regulations that happen on a local level and those are what we are focused on. in general, our sfrae is trying to create companies to do things faster and better instead of
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slowing down a little bit and being held back. >> maria: and then you can focus right on the business model, dan. >> exactly. and as regulation decrease can they be businesses. disney doesn't do this often. they saw something with brit. brit, what will you do with that capital and what is the business model? >> sure, when i was starting brit and co-i do so because i helped to launch google tv that is now chrome cast. i banged on every major television network to put the video content on the internet. about 95% of them told me no. they didn't do that. i was 24 and i graduated college early. i'm one of those people. and so it was shocking to me as a 24-year-old, that i couldn't
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watch television on the internet. that's what i wanted to do. i watched youtube on the internet. brit and co was a opportunity for that. most network are putting video content and breaking it away from things like netflix and disney just exited and making streaming bundles, making espn its own platform. i am excited about the opportunity to think about and dream what is the next entertainment platform for young women. this is an audience i know very well. digital is something i know very well. television and film is what they know very well, so together we believe there is a lot of synergy. >> maria: you can know everything well and have a tough time getting money. how tough was to start this company and get the necessary funds? >> to start the company is difficult out the gate. it is it a big idea. i put my name into it.
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which is very controversial. >> maria: what was the first most important break you got? >> seed ground 1.2 led by founders fund and general catalyst and top name investors. >> maria: i want to get your take on the growth stories in technology right now. they are consumer related companies. i wonder, what the runway is for growth through tech? we'll talk about that after the short break. "wall street week" comes right back. >> announcer: adversity in silicon valley is a hot-button issue. the tech roundtable weighs in on the challenges they face every day when "wall street week" returns. ♪ oh boy. looking for adventure this labor day? holy smokes. oh man, that's pretty intense.
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>> maria: welcome back, and employ memo criticizing google diversity initiated this month. we are back with our roundtable today. brit moran and ryan william and dan rosenhang. your thoughts on gender discrimination. let me start with you here. >> why would you start with me? do i believe in gender discrimination? yes. >> maria: do you believe it's happening in silicon valley? >> it is absolutely happening. i actually don't believe in 100 percent of the cases knowingly. there is a lot of unconscious bias in silicon valley. there are seven percent female venture capitalist and when you have an idea resonating with women it is difficult to get it across to a 50 or 60-year-old white man. not only are there gender
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issues, there are diversity issues across the board. >> maria: that is a good point. do you find the talent that you need in today's environment? we talk about the efforts that president trump has been making in terms of trade and immigration changes. can you find the people that you need to work? >> no. there are never enough great people for us to hire and that is either because of h1b problem and so many great companies that are looking to hire the same kinds of people and from a size stand point we haven't educated them. >> there are over 4000 people started in silicon. the thought that we could hire everybody out there is not possible. >> gender discrimination plays a role as well. for female oriented brand with a female ceo and 70% female workforce, it's hard to at engineers because 95% of them are male.
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and showing why it is a big business is it one thing. you can say it is it a great thing. it is an uphill battle for me as well. >> do you think there is a lack of understanding of the empathy? >> yeah. >> maria: or skill settings. >> and skill sets to understand what they are solving for the consumers. if they have 50- 50 male- female in silicon valley, we would have a much easier way to do that. >> in the u.s., 36-54 male- male-female for the whole company. we over index gender diversity and marketing and hr and finance but engineering still remains a very difficult thing. but there are other areas of diversity. it is it african-american and hispanics, because the u.s. population, we have to represent the u.s. population. younger students coming up and trying to get through college.
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but as it relates to regulations and visas those things, the fact of the matter, the more talented people we bring in this country and to build this economy is supposed to compete with this economy, i think the better off we will be. >> in terms of diversity, it gets brought up and triggers a lot of people. it happens at our country company as well. we have embraced it because we believe that diversity contributes to independence of thought and that contributes to creativity and creativity to innovation. and cadre, if i didn't step out of the traditional line of thinking. this is not how real estate investing should work. our team didn't do the same thing. i do think it's an existential need to have diversity so that we all can continue to innovate. there is a ton much talent here in the u.s. and we can find and bring in the fold. there needs to be awareness. >> brit makes a point. it is not just innovate it is
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relate. 50 percent of the college graduates are women and 30 percent of the population are hispanics. these are just facts. you can believe what you want to believe. if you can't innovate and relate and communicate to these folks, you will not have a successful business. >> maria: do you expect to be private or are you looking for a public offering sooner or later? >> i will say that we are planning to stay private. we have raised the lowest amount to date, 45 million total because we don't want to raise that much more. >> maria: why? >> we want to be owner destiny. one day we can go public we can. i want to be in control of my destiny and 1999. it took four years for a company to go public. and now the average time is 11 years. we are a five-year-old brand. >> and the average length of a public ceo is 24 months.
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[laughter] >> in our world, the way we think about the business, we are in the early phases literally and figureatively. and have maybe to conceptualize. we wanted to take off line experience real estate and make it on line. we still have multiple products to build. >> maria: great conversation, great to have you all here. don't go anywhere. more "wall street week" right after this. ♪ especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated. (con artists...)
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that sounds awful but a lot better than last week ♪rock guitar music ♪we weren't born to follow >> maria: be sure to tune in next friday 8:00 p.m. eastern for another edition of "wall street week." and i will see you on fox news channel on sunday.
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catch the show at 10:00 a.m. eastern on fox news. have a great weekend. that will do it for us for now on "wall street week" ." bob matthews "property man" begins right now. ♪ >> announcer: from fox news headquarters, "wall street week week." helps you position for the week ahead. i'm dagen mcdowell. the u.s. economy adding 156,000 jobs in august with the unemployment rate ticking up to 4.4%. the strong jobs number of is pushing the markets higher. the dow and s & p posting their fifth straight months of gain. 39 nasdaq ending august at an
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all-time high. the storms dropped more than 50 inches of rain on the houston area. at least 39 people are dead. more than 30,000 will in shelters across the state of texas. harvey also making its presence known at the pump. gasoline prices spike as one quarter of all refining capacity is still shut down. president trump making his case for tax reform calling it a once in a generation opportunity. the president reiterating his call to slash the corporate tax rate from 35% to 15%. provide tax relief to the middle class and bring back overseas corporate profits. good to see both of you. dom, we are waiting for specific details on this. steve mnuchin promising details
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in the coming weeks. but that's 50-50 now that it gets done. dagen: in addition to raising the debt ceiling, keeping the government open, putting a budget in place and getting tax reform. they are going to have to deal with fixing the flood insurance program. >> they had a lot on their plate. they haven't gone the much done so far. the idea that they want to get all these things done and get agreement on a tax structure going forward is hard to believe believe. dagen: i wonder if this doesn't give congress a pass. if the economy is growing, they
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don't need to get to it. >> the six people who are going to hammer this out are meeting september 5. but that's just to establish a framework. it's where the starting point is. we know that president trump is talking about this simpler tax system and lower corporate rates but we don't know any of the details. something they all read about and heard about this idea of perhaps taxing the 401k, people's retirement incomes or taking away the mort gaining deductions. >> these are all floaters. floating thing out to see what the consumer will deal with and what we'll accept. i heard no one say 15% is doable. not one person. >> as you mention, 35% is where
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the u.s. stand and there are countries, ireland at 15%. so we have seen a lot of tech companies set up shop in dublin. it's an anglo society. there is a young workforce. gateway, or cal. all you do is go into that airport and you see them all there. there is a big push to get the jobs back here. >> i still want equitable treatment for small business owners. it's something donald trump talk about the president early this year. you tax those individual who are normally taxed at the personal. >> they get tacked on the personal level. they get tanked at 39%. so these are really significant issues that could add real value to the economic growth. we saw the job numbers today.
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they were okay, they weren't spectacular. dagen: don't go anywhere. more "wall street week" after the break. >> announcer: the biggest names, the most of influential mind. it's time to rethink what's possible. rethink the experience. rethink your allergy pills. flonase sensimist allergy relief uses unique mistpro technology and helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. rethink your allergy relief. flonase sensimist. ♪
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that's why i rent from national. where i get the control to choose any car in the aisle i want, not some car they choose for me. which makes me one smooth operator. ah! still a little tender. (vo) go national. go like a pro. dagen: maria bartiromo recently sat down with blackrock chairman and ceo larry financial. here is we had to say on the direction he thinks congress should take on tax reform. >> we are a country with the second or highest corporate thanks rate in the world. it does depress where people want to manufacture and be. if you extract all the abilities
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to deduct, we are not as bad. but we are still in the top third of the highest tax right countries in the world. if we had a tax rate that was competitive or even more competitive than most of countries, it would bring businesses back here. it would bring foreign companies that want to be here. we have an advantage most of companies don't have. we have the cheapest energy of any major economy in the world. natural gas is a third of what it costs in europe and japan. it's a third of what it costs in china. so people would love to be here. but when you translate the cost of taxation, and it was some manufactures i'm told, they can't come here because they can't find the labor. here we are, we talk about how we need to create jobs. there is also. >> the narrative is we can't
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find enough qualified workers. that's not being discussed enough. so what we need -- and i hope this administration focused on it. we have to have governmental policy for retraining. education has not been discussed enough. maria: we started this conversation talking about the anemic growth we saw in the first quarter. tax policies are something people agree on to move the needle on growth. what's most of important? the rate? is it the corporate rate that's most of important in terms of tax reform? >> i think it's a huge deal to take it to 15%. even 20% would be a big deal. it's hard to see how we get 15% unless we do huge deficit spending. maria: do you think we'll see
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tax reform in 2017? that's what i feel is holding up the markets. you said you had a wall of money. do you think that collapses if it doesn't happen in '17? >> i think the u.s. markets are vulnerable for a 10% correction. i don't think that's an issue. but thanks reform is really hard. we found out healthcare is really hard. i'm not sure to suggest whether it will ultimately come in 2017 or '18. what i want to see is a real path. if we could see a real path, if we see a real path having tax reform without massive deficit increases, if we see a path that can help the lower and middle class in their taxation. it can't just be corporate tax
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rate reduction. we have to find ways to help people in need. dagen: that was blackrock chairman and ceo, larry financial. allen greenspan was famous for his exuberance moment. he was asked if he saw any difference between today's market and what he saw 20 years ago. >> there is no irrational exuberance that i can see. it's the opposite at this particular stage. but we still have the situation in which risk premiums are not all that out of line. and i would not be surprised to see stock prices rising. but not any pace that could be turned irrationally exuberance
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driven. >> that's good to know. but at the same time you looked at so-called wealth effect and what it means for economic growth. in terms of the wealth effect today we were seeing the stock market up 1% since election day. we are seeing a number of technology names at their highs. has that impacted broader economic growth? people feeling richer so they are spending more money? >> interribly it will. whether they like the or not, that's the way they behave. people always behaved this way. when you get stock prices moving up or capital assets moving up, it impacts consumption expenditures. maria: so far the consumption has been weak. you have the retail sector that is totally bifurcated.
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malls going out of business. how do you characterize economic growth today and what are the chances we get to 3% in the near term? steven mnuchin is betting on it the next couple years. >> i think the second quarter will show a 3% change but it's a little deceptive because we are having a problem with the seasonal adjustment factors between the first and second quarter. as a general rule i tend to average them. and the average is 1.4 and say 3.0. that's not a terrific number as far as the gdp is concerned. but it in turn is exactly what you would expect at the levels of productivity growth which now have been experienced for a number of years. maria: don't go anywhere. more heavy
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dagen: the trump administration will take on the fall agenda with a few fresh faces in the white house. john kelly facing the task of bringing stability to the administration as it tries to get tax reform, infrastructure spending and a budget through congress. maria bartiromo went one-on-one with leon panetta. she asked him for his take on john kelly's role as chief of staff. >> i like john kelly a lot. the best thing to know about john kelly is he is first and foremost a marine. he dedicated his life to public
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service. committed to whoever is commander-in-chief. and he believes deeply in disprinciple and a chain of commands and a process for decision making and doesn't toll rate chaos very easily. i think he's the right guy to try to get the white house back in order. the real question is whether the president gives him the room to make it changes that will be necessary to improve the operations in the white house. >> when you were running the defense department and cia at omb, there was a very different relationship. and the republicans will say we don't have any participation from the democrats, not on healthcare, not on tax reform. how does the country move forward with such divisiveness. >> maria i think i just touched on one of the fundamental
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problems we are facing in our democracy. if you ask about national security. one of the big threats to national security is the dysfunction in washington. the inability of democrats and republicans to sit down and work together on issues. the inability of the president and the leadership of the congress to work together on issues. the result is we are operating by crisis. i often tell the students in a democracy you operate by leadership or by crisis. if leadership is there and willing to take the risks associated with leadership. it takes risks. i understand that. but it's leadership. that's what we elect to the congress and to the white house. we hopefully elect people who are leaders who are willing to take those risks. but if that doesn't happen, we
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operate by crisis. right now on almost every front we are dealing with things by crisis. the problem is when you do that you lose the trust of the american people and our system of governing and that's dangerous. maria: we are having a debate about healthcare. it's a fight that went on in washington. now they are talking about tax reform. you were president bill clinton's chief of staff. bill clinton was a moderate. he wanted to take the country forward and he wasn't afraid to move across the aisle and get ideas from the right. it feels like the democratic party has been hijacked by bernie sanders, and elizabeth warren. >> i think both parties have been hijacked by the extremes. that's bent problem concerning the parties' ability to work
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together. the extremes have taken over the party base. so they feel to survive they have to cater to their extremes as opposed to working to solve problems. dagen: regulatory reform another one of the trump administration's top priorities. maria bartiromo asked ben bernanke about the importance of reevaluating regulations that were put in place during the financial crisis. >> it's always a good idea to look at regulations. there are a lot of regulations out there. it's always a good idea to look at them and say are they accomplishing what they are supposed to accomplish? can we make them smarter? can we repeal those regulations that are not carrying their weight? and that being said, i think that it's very important that we not forget what a bad experience the financial crisis was and how
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much damage it did to our economy. so a lot of things in dodd flank have the purpose. making sure we don't have a situation like that. so if we try to reduce the regulatory burden on the small institutions that didn't contribute to the crisis so much. maria: one of the issues bankers say is the fact that dodd-frank, some of the rule making didn't hold as much capital. so they weren't learning. >> i don't see that. capital is the best way to make things safe. if they have enough capital they can absorb losses without coming close to failing.
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and incentives are better. if they have capital necessity are investing their own money. they will have incentives to do it bert and be safer. having an adequate level of capital is important. we had our banks get much better capitalized and they are safer and soundser than they were before the crisis. compare us to europe where they had difficulty getting the banks on astounded basis. in terms of lending i don't believe there is any evidence that higher capital impeded lending. lending has been solid. there are a few areas where it's taken some time. mortgage lending was slow to start. but the housing sector is coming back and mort gang lending is coming back. small business lending has always been a problem. large banks don't necessary lire want to take the effort to make
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a loan to a corner pizza store or other small business. but generally speaking overall lending has been 23569 forward in the economy. i don't see any signs high capital is choke off the economy. maria: what would you like to see change in dodd-frank? >> i would start with the small and medium-sized institutions. the goal of dodd-frank was to address the risks presented by the smallest institutions. the smallest institutions were hit by as collateral damage. so that's an area to look at. a number of regulators, including outgoing fed governor talked about the volcker rule which is intended to prevent banks from doing proprietary
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including those around new babies, should talk to their doctor or pharmacist about getting vaccinated. dagen: here is a look at some of the biggest market events coming up next week that could impact your wallet. the markets are closed for labor day. but later we'll get the beige book, jobless claims, wholesale trade and consumer credit. we are waiting on numbers from barnes & noble and kroger. on the political front congress back in session tuesday. tax reform expected to be the top agenda item. that will do it for "wall street
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week." thanks for watching us. maria bartiromo will be back next week. but first bob massi "property man" tarts right now. >> a notorious criminal. >> jesse james was never anything but an outlaw. >> an outlaw with a cult-like following. >> today, we'd call him a terrorist. >> that's a northern term. >> caught on a haunting image... >> this is a controversial photo. >> ...next to his killer? >> it's either jesse james and bob ford or it isn't. >> it's her strange inheritance, and it could bring in a bounty. >> people questioned it. they wanted to see proof. >> we've heard everything from $50,000 to a half-million dollars. $15,000. now $20,000. $20,000. thinking about $20,000. ♪

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