he got it, and volcker is the guy. volcker's in the book, and some people say he's a hero. i'm not big on heros orville lains, but the reporting is the reporting, and volcker speaks with force in the book. we had many, many lunches, talked across almost two years, and volcker is the kind of avatar, the champion of tough love. after greenspan's demise, for the most part, having pushed forward the bubble across 20 years, one bubble to the next, people say, what about volcker? the previous fed chairman. volcker choked off money supply, forced a recession, but he killed inflation, and he set the predicate for so much of the expansion that reagan would take credit for. ultimately, reagan says volcker, you're out of here, not reuping you because volcker was not a believer in the deregulation that reagan was such a champion of. he said, no, no, that doesn't get us anywhere. they need rules of the road since roosevelt, and they still need them. unleashing wall street is not the answer, but he returns to stand behind obama, credibility. this team is sized up by the summer of 2008 as

volcker. the proposal ban's banks from trading for their own profit, and regulators are now asking the public for feedback on the best way to do that. washington bureau chief darren gersh reports. >> reporter: the volcker rule is supposed to keep banks from using taxpayer-insured deposits to place risky bets to boost profits. and in some ways, it has already accomplished its goal. >> many banks have already sold off their prop desk, have sold off their private equity desk. it's changed behavior-- before, it was even issued, it changed behavior. and banks are pouring over the proposals right now to see where are the lines-- what can we do for our clients, what risk management and asset management services can we still provide for our clients, and what can we no longer provide? >> reporter: one thing banks will have to do-- keep much better data on how they trade and why, so regulators can enforce the new rule. >> the metrics would provide a valuable source of information on trading activities i

. >> paul volcker, chris hedges and amy goodman when we continue. >> funding for charlie rose was provided by the following.

>> rose: welcome to our program, tonight paul volcker former chairman of the federal reserve offers his assessment of regulatory reform. >> we didn't deal with the banking crisis wall street would be lot worst off, no doubt about that case, you suld not have a system that is so conducive to the failure of big institutions and so institutions that are so complicated and so interconnected they demand some kind of government bailout, to use the word, true in the united states, true in the uk, true in europe, true in japan. so we have got sething seriously the matter with the system that is not easy to repair overnight. >> rose: we conclude this evening with amy goodman, host of democracy, and chris hedges author of the death of the liberal class and their assessment of the occupy wall street movement. >> this is why the democrats and the republicans are very concerned, you see the republicans changing too, at first they were not accepting this movement. you know, gandhi said it and i will paraphrase it, first they ignore you, then they ridicule you, then they fight you, then you win. and w

why didn't volcker that team get last. obama will reflect on this in his memoirs, but there's a lot of evidence at this point that the things that are natural have been. you know, here is a man that is not an expert in finance or economics. he of course is an extraordinarily brilliant man. but you know, he broke into the league and set tender divesting mccain on these very issues. he spent so much time at this wall street gang and advisors, mccain was no match for obama. even hank paulson republicans are like that guy kind of gets it. and this other fellow mccain is not even buzzword compliant on this staff. and when obama breaks into the leak, you know, the book is sympathetic. an outcome they are trying to feel with the feeling? if you feel at ease dealing as best as a writer can write area, you get a sense of what i call it a good enough reasons. i have abilities from a book that's what i call it good enough reasons rule. i learned it's dealing with leaders of my first book. you know, it was so easy to be judgmental. th

after all, chairman volcker was chaurm of the federal reserve. i look at his picture every day.y try to make sure that the spirit of the rule is enforced. >> thank you very much. >> thank you, representative hinchey. senator koets. >> thank you, mr. chairman. mr. chairman, thank you for your service. both sides of the financial houses here, the congress and the fed face significant challenge. we're both is sort of on the hot seat, don't think it's appropriate for one to blame the other for the problem and you haven't done that. seems to me sometimes too much attention is focused on what the fed should do, when it's not within the fed's purview of doing, it's in ours and we're deflecting the blame other to you. nevertheless, you indicate in your opening statement here that, and i quote, future course of federal fiscal policies remains quite uncertain. and that uncertainty is something we all hear as we go back to our states and talk to businesses an others, it is pervasive. throughout industries, throughout business, throughout households. i guess the question is, how can we, tog

paul volcker was worried about it. milkin was financing takeovers absurd prices. who benefited from those absurd prices? wall street. because they had a little piece of the action. any time the takeover price went up they got a bigger piece of the action. they made fortunes. leveraged-buyouts. some were from milkin who was financing. people turned into millionaires based on the takeover of existing companies that they claim they deserve because what did they do? cut expenses. these companies made the lean and mean and regenerated america. you see where we are today. i am a little sarcastic and a angry about this but it is just. i think i got away with too much. paul volcker was chairman of the federal reserve and probably went too far in trying to tame inflation was disturbed by these loans and so we should probably regulate them but got no hearing from ronald reagan and nobody else. the book talks a lot about this. let me jump to the 1990s. i am dwelling too long on this but i want to make the point clear there was crisis after crisis. before 2007-2008 two crises

it's named after paul volcker, a former federal reserve chairman. the securities and exchange commission still must vote on the proposal. in the presidential race, republican mitt romney picked up a major endorsement from new jersey governor chris christie. christie ruled out running himself last week. in new hampshire today, he said romney, a former massachusetts governor, is the most qualified candidate to lead the country and defeat president obama. >> america cannot survive another four years of barack obama. mitt romney is the man we need to lead america. we need him now. his experience in the private sector, running businesses, turning them around, going in there, telling the people the truth about what needs to be done, and then coming up with a plan to get it done. and look at his experience as an elected official. we know that he brings the best of both to what we need for america right now. >> holman: also today, romney urged texas governor rick perry to repudiate accusations that romney is not a christian, and his mormon faith is just a c

is expected to vote on the so-called volcker rule banning banks from certain types of risky trades. also tomorrow, alcoa kicks off third-quarter earnings season. c.e.o. klaus kleinfeld joins us to discuss those results. contract negotiations between chrysler and the united auto workers will resume tomorrow after an around-the-clock bargaining session failed to secure a new national contract. neither side will discuss the progress on negotiations. chrysler is the last of the big three u.s. automakers to sit down with the union in this year's contract talks. general motors workers have already ratified a new contract and their counterparts at ford are voting on one now. >> tom: if you were expecting a message from a blackberry user in europe, the middle east or africa today, you may still be waiting. the service had a hard time sending texts and emails today from those locations. blackberry maker research in motion is investigating the problems. they apologized for the outage, but no reason for the problem was given. despite competition from apple's iphone, blackberry usage remains hi

he would've listened to paul volcker, he would've brought paul volcker close to him in early 2009 insteadf keeping him locked out of the door, instead of keeping the same wall street guys around him that caused -- caused the entire system to melt down. and you know the names. he took all of the wall street guys, made him his top advisers, and kept paul volcker, the one independent-minded guy outside of the room. ask paul volcker, he'll tell you how serious the president was about financial -- he was pn't. which is fine! if he wants to take all that cash in buckets. that's fine, i don't fault him, do what you want to do. but please, don't come here and be sanctimonious about it. >> you might want to add that to your politico column. write that down. >> is baker with one or two "ks?" >> any time you can use the bakers, use them. it still works. let's go into those polls. >> okay. well, this is actually very interesting, especially given this ad that was pulled last night. a recent poll shows that mitt romney leading the gop field with 30% support among likely republican voters. herman cain

options chicago board of options exchange were created you had a few years of high level inflation paul volcker came in he raised interest rates to sixty percent to prime preet to twenty one i remember that there and it peaked around one thousand nine hundred and then out then reagan came in now from one nine hundred eighty and soul bray recently you've had of the longest bond market rally in the history so people who for twenty thirty years who have become debt slaves but they did so on the back of all of of a rising bond market or lowering interest rates absolutely so they were unaware of the fact that even though they were spending lots of money and they were taking loans out against their house they were actually going broke then suddenly two or three years ago the party ended suddenly houses are underwater suddenly people are now find themselves as debt slaves but this was not something that just happens no no it's thirty forty years but the point you make is is interesting there's nothing wrong with debt per se debt assumes a couple of very important things firstly what you bought with it

clear that they will not follow the lead from the united states an number of things including the volcker rule and swaps 716. should this make you skeptical that they will not harmonize the rules with the united states on other important provisions as well? >> i'm a little worried about this but we would never expect the tworled match us on ore things so i think we have a good chance on the fundamental things with finance and other things around the world that we have a -- we're going to work hard to come to a common position >> i had some other questions with regard to the fsoc and derivatives. specific designation. which you are in the process of trying to take a look at those. about how many of those do you think would fall under that? >> i don't know yet. but i'll tell you what we're trying to do. we're trying to define the mix of size and risk that requires us to take a closer look -- that's the motivation for this. it's an important thing to do. because we have a huge risk doing basically what banks are doing and that was devastating and so we're trying to make sure the scope of tha

paul volcker and dodd-frank, all these to protect the consumer, to make sure if you're going to be a bank backed by the fdic you're not going to be putting taxpayer money at risk and that's fine and good, but the fear is that's going to eat into the revenues even more of the banks and at the end of the day, they are profit house, that's why they are stocks that are traded every day, martha. there's a lot of questions right now. martha: crerl, thank you very much -- thank you very much for answering some of them for us this morning. bill: opening bell in moment, meanwhile, there is breaking news on a wild police chase for dozens of exotic, mature and aggressive animalling -- animal, talking about tiger, bear, wolves, giraffes? the sheriff of that town joins us with brand new osmtion on the hunt this morning. there are four school districts closed as a result. martha: plus there's a man who says last night's republican presidential debate was a, quote, game show in his opinion. he says wanted no part of it. candidate jon huntsman on why he skipped vegas and if he still thinks this morn

i think what the president's paying for, paul volcker led a commission which delivered a report, erskinemission and delivered a report. both of those reports are collecting dust. they were specific plans with specific reforms that would have addressed these issues. the president has talked but had the opportunity for action and passed on it. i think that's what he's paying for. >> thanks very much to both of you. we appreciate it. thanks for coming back. next time, there is no need to be shy. >> we're pals. >> that's why i love it. you fight but with kind spirit. thank you, guys. >> out front next, gadhafi is dead and now buried. what was the reaction from the people in libya and what does it mean? >>> the latest in the baby lisa case. three weeks since the baby disappeared. we'll talk to a private investigator on that case tonight. >>> the sibling effect. what we can learn -- no. the burnetts, three girls. kardashians. never goes out ♪ ♪ and the sky is deep and blue ♪ ♪ won't you take me american flight 280 to miami is now ready for boarding. ♪ there with you fly without putting your li