part of that is dodd-frank. i don't know anyone who would agree with dodd-frank.d that some things put in there after the fact should not have been put in, but it is what it is. unfortunately because dodd-frank , it is what it is. i have to deal with it. that is the law of the lamb. land. it basically says make the system better, so the regulators have a huge amount of authority to interpret these rules. is better, dodd-frank is partially responsible, but dodd-frank was passed 100% democrat, 0% republicans. none of us can possibly say you can't make things better. rational people should sit down and say what ports work, what parts don't work, what should be changed. a lot of good work was done and a lot of flaws need to be fixed. david: you were quoted as saying you would have to move people out of london. jamie: brexit is what we expected. unknowns a vote for the that we thought would reduce the gdp of the duke. it is going to. going to withuch foreign direct investment, people opening factories, construction. it is not a disaster. we think .5% to 1%. the second,

carol: up next, if not dodd-frank, then what?e look at financial reform under a republican controlled congress. oliver: and why some republican lawmakers are backing away from repealing obamacare. carol: this is "bloomberg businessweek". ♪ carol: welcome back to "bloomberg businessweek". i am carol massar. oliver: i am oliver renick. in the markets and finance section, banking reform under a republican controlled congress. oliver: we look at what conservative banking regulation may or may not look like. will dodd-frank not be repealed and replaced this year. in might never be repealed and replaced. we might see some tweaks around the edges. i can't say for sure. there is a good chance he won't come close to getting rid of dodd-frank. oliver: how much of this will be a result of the surrounding him? mnuchin's testimony, they ask him about dodd-frank him and he did not seem like he wanted to tear the entire thing up. some of the language from some of trump's official seems to be not quite as extreme. gary cohn see some value in dod

dodd-frank was a huge piece of legislation. is a lot of stuff in there, 70% to 80% has been implemented by financial firms. whether or not they are willing to start rolling back is a question. >> that is a good point. one of the people i talked to was the head of the clearinghouse association. he told me, well, repeating dodd-frank is not the top of our list on things we want to do. what bothers them the most are the capital tests the fed reserve is putting on. dan tarullo, the vice chairman of the fed, is leaving now, and the hope of the clearinghouse and other groups is if trump manages to appoint 3 new fed governors, he might be able to twist the dial more towards easier capital regulation, which is even more important for the banks to get rid of dodd-frank. oliver: how planned parenthood is turning out to be a landmine for republicans looking to repeal obamacare. >> it is definitely proving harder than i think trump and republicans in congress expected. what is making it even harder is the insistence by some of the most con

dodd-frank.k talk to . >> not only will dodd-frank not be repealed and replaced this year, it might never be repealed and replaced. we might see instead some tweaks around the edges, but the general concept -- i can't say for sure, but there's a good chance he will come anywhere close to getting rid of dodd-frank. >> how much of this is going to be a result of those surrounding him? testimony, they asked him about dodd-frank. he did not seem like he wanted to tear the entire thing up. some of the light which from some of trump's officials seem to not be as extreme. is an important advisor at a goldman sachs. he sees value in at least some parts of dodd-frank, while criticizing others. these people are definitely wall street types it a like heavy regulation. i want to get into the general concept. there are two approaches the financial regulation. the democratic approach is basically you regulate. these firms screwed up. they brought the world into a financial crisis. now we need to supervise them

. >> yes but dodd-frank is a big thing.ting cutting dodd-frank. i'm telling you why they are going up. some parts of dodd-frank are necessary to be honest with you. that is why goldman sachs is going up if this guy gets in there, so you know, mr. allison, since it is a hot button name, this is a positive for bank stocks, just pointing that out. not saying go out and buy it. i'm trying to reduce this to investing decision here. primarily both of these guys are pretty idealogical against dodd-frank, which is another reason why bank stocks are going up. so this is what we hear. they're the last men standing as people dropped out. neither of them have any comment. the trump administration has no comment. we'll have to play along. i don't guarranty they don't reach outside for someone else but these are the two names, particularly allison that i'm hearing. allison would be a big, big name. liz: heard it here first, charlie gasparino reveals the two front-runners. thank you, charlie. the closing bell six minutes away. you could c

the regulations in dodd-frank, we talked about this yesterday, a number of the regulations in dodd-frankere meant for the largest internationally active banks. not for the small 100 million dollar bank on main street america, but we have been laboring under those regulations and they are choking the life out of community banks and this president pledged that he was going to do something about it. i have to tell you, stuart, it was the most refreshing white house meeting i've been in for over ten years. this is a president that understands our business and he understands the pain we've been in for the last nearly a decade. stuart: now, last week at our production meeting early in the morning, we went around the table. we've got about ten people in our editorial production meeting in the morning and went round the table and said anybody here trying to get a mortgage? three hands went up. any of you guys had a problem with getting that mortgage? three hands went up. they've gone through a nightmare of getting paper work together, getting it in on time, having it questioned, coming up with t

they're all going to choose to live under dodd/frank. so i don't think you can give them the choice act. i think you have to give them the capital act, which is you're going to live with more capital or restructure yourself. >> great. and we have just a little time left, so maybe one more question. you have accomplished quite a lot, obviously,a anin a little r a year in your role. did you want to talk outside of monetary policy, what's next on the agenda. >> sure, before i started, i met with our research department and asked them, what do you think the biggest economic risks and challenges we face in the country? could be anything. go off and think about it. too big to fail is one of the topics they raised which i agreed with. another one issues of economic opportunity. and inclusive growth. like our lunchtime speaker, which was fantastic today. in late january, we announced a major research initiative at the minneapolis fed, working with all of our colleagues across the system where we announced the opportunity and inclusive growth ins

you asked about deregulation and dodd-frank.he president did sign an executive order on the core principles of the financial markets. it is actually much broader than dodd-frank. so, while we will be looking and dodd-frank, he has instructed me to come back and issue a report to him as to what we can do, now having had some time past since the financial crisis, to look at regulation across all the different areas, and this is something we are hard at work on. we are reaching out to all of our regulatory independent agencies in the united states. we are working with our international counterparts. we are reaching out to big banks, small banks, international banks, nonbanks, and we are going to look at what makes sense to do -- the primary focus is on the one hand, we want to make sure we stimulate lending and we grow the economy, and that where there are regulations that are hurting our companies and our banks from lending, that we deal with that. we by the same nature, that make sure that our financial institutions are safe and

hey're all going too choose to live under dodd-frank. so i think you have to give them live pital act which is with more capital or restructure yourself. >> right. and we have just a little bit of maybe one more question. lot e accomplished quite a obviously in your role. did you want to talk about maybe outside of monetary policy the agenda for fed?inneapolis >> i asked what do you think of economic risks and challenges we face as a country. it could be anything. go off and think about it. and hear your ideas. too big to fail is one of the raised which i agree with and another is issues opportunity. like lunchtime speaker which was fantastic today. in late january we announced a at theesearch initiative minneapolis fed working with all of our colleagues across the system. to nnounced the opportunity the growth institute. fed position he has been monetary policy is too blunt an instrument. they can't be targeted at communities or different demographics. anything about it. even if that's true, if we can o the research with all of our real

what is your opinion on dodd-frank? >> okay. well, so this is the law that was passed in the wake of the debacle that was the housing market crash and the idea was that you had to put big severe controls on the banks so they would never, never do this again, but what dodd frank ignores is that the federal government played a very big role in housing policy and it was the federal government making loans that actually put a lot of people underwater. what i saw personally and at a very microlevel is that dodd-frank discouraged a lot of small and medium sized banks from doing business and especially lending small business, they couldn't -- dodd-frank was too big for them to deal with, too many rules, too many regulations, we lost a lot of banks in that category and those are the banks that fueled middle market growth. so it had a lot of unintended consequences and it's one of the reasons we can't get past 2% gdp. banks aren't doing their jobs right now, they don't like dodd-frank, the federal reserve keeps rates at almost zero, doin

in particular dodd/frank gave the s.e.c. the authority to rein in the use of the arbitration clauses. unfortunately the s.e.c. never so much as studied the issue. so my question to you is if confirmed, will you commit to the reining in of the forced arbitration clauses? >> i'm not going to prejudge and commit to that issue. it's actually -- i will tell you it's an issue that i don't know a great deal about. but i will say that i'll commit to working with you and working with the staff to learn more about it. >> thank you. second question, number of my colleagues today covered how your substantial recusals may impede the work of the s.e.c. my specific interest, though, is in transparency. i believe that government doesn't do enough of being transparent enough to the taxpayer to understand what has taken place. in commission hearings and any type of process and procedure. and while i certainly don't want market moving information to be disclosed before it's right, i think the public should know when anyone recused yourself whe

, what aspects of dodd-frank will you be attacking? >> i don't have any specific plans for attacks, senator. i do believe that dodd-frank should be looked at in particular rules that have been in place as to whether they are achieving their objectives affectively but i have no specific plans for attacking a particular provision of dodd-frank, senator. >> has anyone you met with talked to you, anyone from the transition or administration you have talked to made suggestions and questioned -- have they questioned the efficacy and fairness of dodd-frank and suggested to you that it needs reform or change? or repeal? >> as a general matter, the question of whether dodd-frank has been effective is a question that is on the minds of people in the administration based on my interaction with them, yes, i had discussions with them and a particular aspect of it. my interaction with the administration since i was nominated has been quite limited >> do you see your job to help the administration as they have said they want to deregulate wall street

to quote our president, we are going to do a number on dodd-frank. working people are going to go back to work. key part was education. what did you hear tonight? >> education is a civil right of the 21st century. i'm a father myself. education is the key to our future potential. we have got to break this monopoly we have with these teachers unions. everyone should have freedom of choice to choose the school that for their child. god bless him. >> we appreciate your time. back to year. >> our chief washington kevin, ask about the border tax adjustment, something noticeably absent from the speech tonight. were few areas in which he did provide specifics. one was on obacare. he ggested americans should use tax credits, a paul ryan idea. some are against that. he offered no new details on which side he would come down on on border taxes, how he would frame the tax debate. the $1 trillion is something he proposed in the campaign. if you were looking for guidance on how he is going to do he says he is going to do, you did not get it for the most part in t

dodd-frank gave the ability to reign in forced arbitration clauses. the sec never studied the issue. if confirmed, will you commit to reigning in the use of forced arbitration clauses? >> i'm not going to pre-judge and committee to that issue. it's actually -- i will tell you it's an issue that i don't know a great deal about. i will say that i will commit to working with you and working with the staff to learn more about it. >> thank you. second question, number of my colleagues today have covered how your substantial recusals may impede the work of the sec. my specific interest is in transparency. i believe that government doesn't do enough of being transparent enough to the taxpayer to understand what is taking place. in commission hearings, in any type of process or procedure. while i certainly don't want market moving information to be disclosed before it's ripe, i think the public should know when you or any commissioner has recused yourself once an enforcement matter is settled. will you commit to report to the public instances when you have re

they will choose to live under dodd frank. you will live with more capital or you will restructure yourself. >> maybe one more question. you have a compost quite a lot in a little over a year. did you want to talk a bit about outside of monetary policy, what is next on the agenda for the many annapolis -- minneapolis fed? neel: i met with my research department and asked them, what would be the biggest economic risks and challenges we face as a country? let's fear -- let's go back and hear your ideas. another one was issues of economic opportunity. and inclusive growth. the lunchtime speaker that was fantastic today. we announced a major research initiative, working with all of our colleagues across the system. or we and inclusive growth institute that is trying to encourage the federal reserve to do research on issues of economic opportunity. position has been monetary policy is to blunt of an instrument. be targeted at communities or demographics so these issues are purely distributional. , ite can do the research helps unra

that is probably dodd-frank and probably various regulations they came in place to implement dodd-frank. on the liquidity side, of a survey prepared making sure they have sufficient liquidity if there is a big shock. i think there are aspects of dodd-frank that been very beneficial. people have highlighted the concerns about the regulatory burden. i think we should take a look at all the regulations. i would not want to see the capital regulation change in a way that caused our banks not to be among the most well-capitalized banks in the world. kathleen: it doesn't directly plaintiff fed policy, it was a historic day. theresa may invoked article 50 of the lisbon treaty. what is it mean for the fed if anything, the u.s. economy, and for you looking at this? as someone who is benefiting supervisor or so many years, where do you think this is going to go? there has note been much of a collateral impact on the united states. i think many of the effects of a little bit more modest than people were anticipating initially. we will see. this will take time to rollout and in a lot depends what k

dodd outline. number one. number two is most of the tech companies in northern california and across the country offered us. you may be aware of the recent issue around the supreme court heard around whether or not transgender children can use bathrooms appropriate to gender identity. i want to just suggest that if you look at the amicus briefs were not only offer by 59 cities across the country they were offered by every nondiscrimination group in the country. they were offered by 1500 religious and faith leaders across the country are offered by the pta. they were offered by school districts around the united states. the offer by a broad broad category of respondents and participants in support of gender identity in the property concern. in 2001, this board we had very spirited discussion, if you make, it about this issue and the board and most of the actuary said well if we adopt this everybody's point you want to do it. and this is going to bankrupt the city because with 20,000 employees and shirley a lot

it is not clear that they want to get rid of dodd frank., letting the banks loose is insane. i think we're going to get to where he's done with health care, i didn't realize it was so complicated. and maybe not much will happen. but it is, it's breath taking that we're not, the financial crisis is a living memory. and it was a story of a really horrible incentives baked into the system that led the big banks to do things they shouldn't have done and brought them to their knees. and now we're trying to let them loo loose. >> what would you say is the single biggest thing at risk in some of the biggest proposals you've heard about what they want to do to dodd frank? >> well, you know, there have been so many things said. if i was monitoring it from afar and not willing to read the dodd frank regulation, and a concerned citizen, i would watch first. they don't change leverage requirements on banks. the equity requirement should be even a greater than they are. at the very least, they would not be reduced. the vocal rule. some republican dozen

the industry is ramping up the fight to pick apart the rules in dodd-frank that have been implementedthe first two here, the volcker rule, which limits trading activities, and the durbin amendment carries huge costs for the banks and would bring huge windfalls if reversed. the second two, stress testing and holding high levels of capital, those could be relaxed without as big a fight. the reason why, those two issues are issues facing banks having below 5$500 billion in assets. the number of banks in this country that fall below that threshold are in the thousands. they drive main street business lending. analysts say banks between 10 billion and $50 billion in as -- assets will see the biggest improvement. president trump said he would work to improve lending and regulations. big banks have the lobbying, but the small and mid-sized banks seem poised to see the biggest benefits. and today news that the fred approved a merger between peoples united fi ed financial suffolk funneinancial which und the previous regime would have seen a highly scrutinized view of that merger. >> i saw that

. >> do you -- what is yourti opinion on dodd-frank? >> okay. well, not -- so this is the law that was pass held in the wake of the dedebachle of the housing market crash and the idea was you had to put big severe controls on the banks bao they what would never do this again. but the federal government play a big role in housing policy and the federal government making loans that actually put a lot of people underwater. what i saw personally and at an very microlevel is that dodd-frank discouraged a lot of small and medium size its banks from doing business and especially lending small business. they just couldn't -- dodd-frank was too big for. the, too, to deal with. too many rules and regulations women lost 0 lot of bank and those are the very banks that fuel middle market growth. so it had a lot of unintended cons o consequences that have been bad for the economy.co one rewe can't bet haas 2% gtb us base the banks don't like dodd flank and can may money because the federal reserving doing almost nothing and where do we sid? you want the loan

it's not clear that they want to get rid of dodd/frank.re are probably some regulations that could be fine-tuned. but trump, the noise they've made about, like letting the banks loose is insane. i don't think anybody is ever actually going to do that. i think we're going to get to a moment with financial regulation essentially what he has done with health care where he says oh, i didn't realize it was so complicated. and maybe not much will happen. but it is -- it's breath taking that we're not -- the financial crisis is a living memory. and it was a story of really horrible incentives that were baked into the system that led the big banks to do things they really shouldn't have done and brought us all to our niece. and we're now talking about trying to let them loose seems to me insane. but who knows what they're going to do. >> what would you say, michael, is the single biggest thing at risk in some of the proposals you've heard what republicans want to do to dodd/frank? >> you know, there have been so many things said. if i was monitori

be a long time before they get to dodd-frank.he problem for the trump notnistration is they are being quick staffing these agencies are people are dropping out four important jobs at the federal reserve, some of the most important jobs on financial regulation. people are saying they do not want to do them. there is a bit of an error with the trump administration. they could be moving faster on deregulation as regulatory agencies and it is not happening. having to matter of work through the details of how they will be repealing or changing dodd-frank and that type of stuff, or can gary: and steve mnuchin and president trump sit down to figure out the path they want to take and push it off? >> the most important job in all of this is the vice chair of supervision, at the federal reserve. one of the main at the job dropped out yesterday. steve mnuchin can advocate policy. that job at the federal reserve, that is the person who works on federal reserve rules for regulation. question aboutn why people don't want to do these jobs. on t

dodd frank which is where they're stuck right now. everything that trump is doing is being pushed out. it looks like deregulation is getting pushed out if it happens at all. if people were baking in that good news and now they won't get it, that limits the upside. >> the one outlier is that the ceos can go on the conference call and talk about all the animal spirits that are happening within businesses that are creating more businesses. >> i'm a bit skeptical of that. they don't look that way by their actions. if they can't get some policy instituted, they may start thinking twice about how they'll deploy their resources. let's to go a stock that has gone from worst to first. nike shares one of the best performing dows. it dropped nearly 20% this 2016 make go at this time worst in the dow last year. rerngs next week. there could be more gains ahead. what do you see? >> all this flip flopping. herring was so bad. energy so good. and now so bad. and often, there is something to see. there are definite strategies. nike sets up well to my

rise like you are a lot smarter about dodd-frank -- guys like you are a lot smarter about dodd-frank ago. >> i hope so. we have learned a lot. dodd-frank in many ways was a law that required regulators to create new rules, and they have created several hundred new rules. we have would a lot about the process. there is a way to sum it up. dodd-frank is a very inefficient in some ways, but the choice act, which is the proposed replacement for dodd-frank, would actually make the system less safe. so if i had to choose, even if i don't like the inefficiency, i prefer safety. tom: francine lacqua just spoke with jamie dimon. i was a justine knows to the penny what is additional -- i would suggest you knows to the penny what the cost is. it has been onerous to say the least. is the cost worth it or are we just for ourselves before the next crisis? >> there are definitely ways to reduce the cost. we would love to see reforms that would cut the cost. if you're going to do so, you can do it in a way that does that make the system less safe. you would not remove the strict supervision of the m

but we want to make sure it's an exciting experience and that people walk away inspired and motivate dodd something. >> a slight silver lining to the cloud these days is a lot of this seemed historical at one time but now they seem contemporary. how about the kind of filmmakers that you're getting? >> we have a mix. we're redefining who's a storyteller. at first it used to be you make a film and that's it. we wanted to break down the borders of who tells stories. even if you have home movies, you can be i storyteller by doing that. so at our festival it's an immersive experience and we want to make sure when you come you get to meet filmmakers but also performers, artists, culinary exper experts, we have all of that mixed together in an 11-day festival. >> it does make it an artistic and cultural event. >> right. >> you're going to come back later and talk about more of the exhibits. >> if you'll have me. >> again, cam fest is celebrating it's 35th year showcasing film, music, food from innovative asian and asian-american artists starting march 9th. check the website for more details. >>>

if you do not think dodd-frank is working in the capacity, you probably do not think highly of f-stopregulator. david: jesse westbrook, always great to speak with you. joining us for washington, d.c. the conference in new orleans, louisiana, talking exclusively with president and coo jack stark and that is coming up. this is bloomberg. ♪ . . david: "bloomberg markets," trump's first 100 days with a focus on policy under the new administration. mark crumpton has more. the next fight on capitol hill could lead to a government shutdown. conservative republicans say the party has yet to post its first big legislative victory. they may try to defund planned parenthood because it provides abortions. comesicans next chance april 28, when government funding runs out. democrats strongly support planned parenthood. the battle almost led to a government shutdown in 2015, and made with congress on a path to another one. the white house is leading the push to a united nations conference that seeks a leading -- legally binding ban on nuclear weapons. nikki haley led a group of envoys for u.s. allie

but i have no specific plans for attacking a particular provision of dodd frank. >> democrats raised concerns that mr. clayton's work as an attorney on behalf of wall street firms would be a conflict of interest. mr. clayton said his past experience would be a strength. >> meantime, president trump's choice to lead the department of agriculture was pressed about the proposed cuts to the agency. at sunny purdue's confirmation hearing, he told lawmakers he had concerns about the bluepr t blueprint, but was committed to the well being of the nation's i get a -- didn't like as well. i didn't like it. and we managed to it. >> and mr. purdue added it is possible to do more with less. >> ford is warning shareholders that profits in the first quarter will fall sharply and come in well below what wall street was expect iing and that sent shares lower in trading says rising costs are hurting its bottom line at a time when the company is trying to make big changes. phil lebeau has the details. >> ford is trying -- strong, but feel iing pressure while investments in future costs. ford's first qu

but another top bank ceo just came out against a repeal of dodd/frank. we have details on that coming up. >>> could google be on the hunt for acquisitions and expand its cloud business? we'll hear from the company's cloud chief later on "the closing bell." ♪ it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average? hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab

it's much bigger than dodd-frank. this is dodd-frank is one aspect of this.but we have a whole team of people reaching out. we had 150 people from banks. we have reached out to all the regulatory agencies, banks, nonbanks, processors. we are seeking input from everybody you can imagine is impacted and we'll tell the president our recommendations. certain things can be done by the regulators, by changing regulations, certain things can be done by him through executive orders and certain things will require legislation, and we're going to have a all-encompassing plan to make sure that we unlock the importance of making sure that banks can lend, making sure we have community banks. we have regional banks and our companies, get the proper access to capital and the financial markets have appropriate liquidity. >> how do you see the debt limit playing out? , yeah that's a fun part of my job. so, what i said when i went through my confirmation hearings, and said to everybody who asks -- thank you for asking. we spent the money. so the concept of the debt limit is so

foremost, especially as the new administration is bogged down with obamacare, is the potential for dodd-frankreally change meaningfully over the next few months, is not particularly great. i do think there may be some move towards mid-size and smaller banks to get things going again in that capacity. the month center banks, the big ones, jpmorgan, bank of america, citibank, they may have a lot of the good news in the near term. i want to look at citigroup. those are the year to date, citi is only up about 2%, jpmorgan up 12%. it's really lagging. that's the one i want to focus on. >> for this week, we can't ignore the fact that there was a real bid higher in bonds, sending rates lower. >> well, i mean, as dan was pointing out, one of the issues of course for a bank is how they make their money. what rate do you lend at, what rate do you borrow at? that's what the net interest margin basically is trying to figure out. the yield curve has flattened since december. from june to december of last year, the yield curve had steepened, that's good for banks. lately it has flattened, not so good for b

in the environment we find ourselves in with the potential for dodd-frank to go away, all those thingsy, i don't think 1.8 to tangible book is unreasonable which gets you $310 stock. the price action today didn't make me all that happy but i'm not walking away from it. kevin likes small caps and mid caps what can you still buy? >> if you want to go small caps i would go with that because you have this potential collar effect, potential border effect. i'm not really buying a lot of stuff. it's just not my nature to buy. >> are you selling a lot of stuff? >> yes, i have taken profits in financials. i'm completely out of those. i would look overseas. you can look to japan. the one thing i would say about the financials, though, which was different than the last couple weeks. we had rising interest rate today and a fourth governor say, march is on the table and financials went down. that concerns me. >> still ahead. president trump pushing for a big increase in defense spending today. we'll tell you who the big winners and losers could be. plus more on the trump trade. it's the one stock s

if you were around washington in 2008, 2009, dodd frank, while not perfect, was essential. go far enough. we needed to ban what are called naked credit default swaps and so on. but to have this administration come in to say we need to take apart that which we put in place after 2009, that's absurd and dangerous for the country. >> you mentioned naked credit default swap, not as exciting as they sound. not the kind of thing you want to see if you're worried about unnecessary risk in the markets. the two of you appreciate that kind of joke. i'll go to you, jared, one more comment from the senator. briefly, while i have you, your view on a letter grade on how the democratic congress is doing and standing up to trump. you sometimes have been more aggressive than your colleagues. >> too early to tell. it is hard. democrats are in the minority and both the house and the senate. but in the senate, especially, there are 48 senators on the democratic side, they have some very significant strength. i think we'll know more in the next couple of months about the fight they're willing t

they scored a big victory in 2010 when there was a provision added to the dodd frank act that cap todata card fee, specifically. now, here on the hill, as lawmakers in the house debate a broader overhaul, banks are lobbying very aggressively to durbanand get rid of the amendment, as it's called, the cap on debit fees. on the other side, retailers are lobbying very hard to keep the law as it is. stuck in the middle are lawmakers on both sides, democrats and republicans, who either oneto offend of these important constituencies and political donors. clearly -- scarlet: this is something that will be very contentious and both sides are making vigorous arguments to congress. what are the arguments? elizabeth: retailers think that the credit card industry and how they set the fees is not fair. they want to keep -- they say that this is the law and it should be kept as it is. banks argue that the durban itndment hasn't done what said it was going to do, which is reduced prices for consumers. they also argue that banks have seen less revenue, have had to make a lot of changes to their own b

. >> i do believe that dodd/frank should be looked at, in particular, rules that have been in place as they are achieving their objectives effectively, but i have no specific plans for attacking a particular provision of dodd/frank, senator. >>> a suffocation risk has prompted the recall of more than 10,000 packages of children's water-proof bibs. the recall involves environment brands bibs with water-proof plastic backing. there have been 12 incidents of that plastic separating from the fabric. that's the "news update" this hour. back downtown to "squawk alley." carl, i'll send it back to you. >> sue, thank you very much. >>> obviously, big news out of disney this hour, bob iger extending his contract until 2019. joining us this morning with his always unique insight, pulitzer pri prize-winning "the new york times" columnist jim stewart, author of "disney war." jim, good to see you. >> thanks, good to be with you. >> going to be hard to run for president if you're running disney. were you surprised? >> well, no. the fact that he extended is not a surprise. there's been a certain amoun

there is a lot of enthusiasm that trump may roll back dodd-frank regulations.think there is a case to was too onerous and dodd-frank needs to be pulled back in some way? >> there is a huge case to be made. just more is not jus or less. banks need to be regulator, but an approach that favors and almost amounts of capital as opposed to an army of regulators that go into make sure the banks don't lose money again, i think that is the right, smart approach. i think we have discovered that banks can get by with lots and lots more capital. ,hey are betting their money not depositors money, not the government's money, so they can lose substantial money without imperiling the financial system. that is a robust structure that would get us away from financial crises, too big to fail, and this army of regulators out there. joe: great conversation. john cochrane, senior fellow at the hoover institution and stanford university. thank you very much. as the candidacy of french presidential candidates, could an old rival come back to claim the conservative nomination? this is

this is a result of the dodd frank act. the biggest banks do have more capital today. we've reduced the chance a bailout from 84% to 67%. there's some cost to that. 11%. this is a present value of a permanent effect of gdp. it's not a reduction of gdp by 11% per year. it's just a present value accounting. but the net benefit is 12%. so society is better off by avoigd the crisis or routesing the likelihood of a crisis, spending some up front in terms of higher capital for the banks. now, let's put that in context. this is i think from the b.i.s. number for the typical cost of a banking crisis, 158% of gdp. that's massive. think about it intuitively. how costly was the 2008 financial crisis for the u.s. economy and for advanced economies? massively costly in terms of reduced output, job losses, et cetera. so 158% of gdp. that's what we're trying to avoid. you're willing to spend a fair bit of money if you can avoid one of those outcomes. what do we do in the minneapolis plan? we have a multitep plan. i'll walk you through what one of those steps are. step one of our plan

it is much bigger than dodd frank. this,rank is one of the but you have this whole team of people reaching out. we had a group of 150 people from banks. we have reached out to all of the regulatory agencies. we are seeking input from just about everybody that you can imagine is impacted by these regulatory issues. when we come back we are going to tell the president here are our recommendations. certain things can be done by the regulators by changing regulations. certain things need to be done by executive order and certain things will require legislation. we are going to have an all-encompassing plan to make sure that we mock the importance of making sure banks can lend, making sure we have community banks. havingn't just about global banks, we have regional banks. our companies can get the proper access to capital. those are all higher on our agenda. really one of the fun parts of my job. what i said when i went through my confirmation hearings and asks, weverybody who spent the money. limit ispt of the debt somewha

i do believe that dodd frank should be looked at and in particular rules that have been in place as to whether they are achieving the objectives effectively that i have no specific plans for attacking a particular provision. >> it is your job is there anyone you mac swift vets talked with anyone from the transition or administration that you've talked to made suggestions and questioned the efficacy and fairness and suggested to you that it needs reform or change? or a repeal? >> as a general matter the question whether it's been effective is a question that is on the minds. my interaction in the administration since i was nominated has been limited to a. in individual that rises from the modest means to the pinnacle of his profession and then answers the call of public service i can assure you will not go unpunished. regrettably that did not happen. as a negotiator. i believe attorneys should never be judged by the parties they represent but rather by the quality of the representations that they provide. they understand corporate structure and capital markets information. they maintain

but can you fix dodd/frank?an work on collective together to make dodd/frank stronger and yet give us the same security? >> any examples? >> well, for example, some of the regulations are small and medium size banks. there are some of those just over regulations that we can work on together that would help speed the economy, put more money for small businesses, we can work on that together. and that would be good not only for new york and urban america, it would be good for rural america too where you have small businesses there. so those are the kinds of things that dodd/frank we can look at how we can fix dodd/frank so we don't have to have those unintended consequences effecting individuals. >> congressman, it's good to have you in. >> good to be with you. >> thanks for joining us. gregory meeks joining us at post nine. let's get to sue herera, half past the hour, get a news update. hey, sue. >> good morning, carl. good morning everyone. here's your news update at this hour. vice president mike pence under fi

dodd-frank's trickle-down impact of the small community banks while across the united states.e of the ways they are being examed would be the way they exam a larger institution. we did talk about some of the ngings that needed changi through legislation and having the regulatory officials at these entities. kevin: federal reserve vice chair supervision. we still have a name. a lot of moving parts. a representative was mentioned, other folks dropping out. where does that stand in terms of the timeline when we are going to get these appointees? . investors need to know this robert: there are several coming up. same with the fdic. at least three governors of the federal reserve, one of which will be involved in supervising and regulating all banks. another will be a community banker. there is lots of really important positions in addition to the ultimate cfpv director. kevin: where does he stand on the consumer financial protection bureau? robert: this president definitely understands the need to have people with real world common sense experience at these regulatory entities. we

has promised to review the strict regulations brought in after the financial crisis — known as the doddthe dow's index of bank shares has soared i7% (take gfx 4) the construction industry has also been doing well — thanks to president trump's promises of huge spending on infrastructure. shares in that sector are up 9% since the election. markets have been rattled this week though. some investors think they are now only going in one direction. the market really can't keep the gains that we had earlier today. it'sjust a no—win, because no matter what happens in the house, that bill, that healthcare billjust had to be too conservative for the house. the senate will never be able to pass that bill. there's just too many on the left, liberal senators, so it's a no—win, which means it's no support for trump which means that that trump trade is starting to unwind. russ mould is investment director at aj bell. nice to see you. what do you make of all of this? everybody predicted that this particular reform of the affordable healthcare act known as obamacare affordable healthcare act known as ob

stuart: the paperwork that you have to go through to ensure dodd-frank compliance simply daunting.small community banks since 2008 because of rules that have came down from dodd frank. stuart: gone out? >> yes. lend to the small businesses that create small and mid-size, 75% of the u.s. job growth in the country. dan called it a smothering pillow. stuart: dan, i'm not really sure i understand the process that well but i think some of the provisions of dodd-frank could be struck down by executive order or by the treasury department as opposed to going through congress for full-scale legislation. >> some of them could but some have to go through congress. that's a good point n. the resequencing here we have obamacare reform, then the tax reform bill and i believe dodd-frank reform is probably standing at the light at tend of that, big changes won't come until later in the area. >> i want to be clear, that's also why they went under, but steve mnuchin you noticed was sitting there, treasury secretary. the president said you come back to me by june with a report on how to dial back reg

sam: for dodd, her aunt says she was accepted in her neighborhood. but the men accused according to authorities were passing through, targeting transgender prostitutes for robbery. >> everybody in this world got somebody in their family that is gay. whether you accept it or because they are still human beings. sam: under d.c. law, if you -- the three men today, by the way, pleaded not guilty. under d.c. law, if you are found guilty of a crime with a bias or hate enhancement, that means that the maximum penalty goes up 50%. reporting live from northwest washington, sam ford, abc7 news. alison: thank you. the federal government is delaying the release of the plan for a new f.b.i. headquarters. three locations in greenbelt, landover are considered for site. they knead more money. the administration overseeing it said it would be complete before the end of 2016 and then pushed the deadline till today. this time the agency declined to set a new deadline. larry: the redskins kicked off the free agent s resounding thud. they made some moves that might ease