our next guest is the cio of calpers. he's going to be testifying today before the senate.ors working group. that's the council that released the regulatory recommendations today. joe, thank you very much for joining us.. >> glad to be here. >> we're trying to figure out what it is you're going to say today to the senate. do you have big plans to turn over more regulation to the fed? >> listen, the testimony today is about the importance of hedge funds, private equity, and other private pool of capital to investors. but the larger message is about the necessity to improve the regulatory system in the united states. and the report that the investor working group came out with today is about this specific recommendations to make that our regulatory system work for investors and to assure robust capital markets. >> and what would you like to see done? what do you think actually needs to happen? >> we've got to do four things, we have to strengthen federal regulators and revitalize, give them independence and resources so they can do their job. we've got to close regulatory gap

calpers is ahead of us. they're the largest instituti institutional investor. >> calpers is ahead and then you. and there are seven total? >> no, there's quite a few others, but seven i think core institutional investors. >> so where are you going to be investing this money?? and how quickly are you going to put it to work? >> well, you know, ironically, in this market we're busier than ever. and we're finding companies that maybe don't necessarily want to sell 100% of their company right now, but we're willing -- they've seen kind of the bottom. there's been a capitulation by sellers, and they get into a place where you know, what i can sell a majority stake in my company and couple with a team like huntsman gay and we can kind of group together going forward for a tour of duty and see what they can do in the second bite of the apple. so the leveraged recap is a place where i think there's a lot of deals being done right now. >> can you get financing? >> you know, yes, you can. sellers are having to be kind

calpers reported a 23% drop of a $56 billion drop. if they can't fund that, the government has to up contributions. a 2/3 majority that gives the minority veto power. a siren goes by. we have a budget! a tax code that relies on income tax meaning california's revenues are tied to wall street in an estate of 38 million to 134,000 wealthy californians paying nearly half. finally a proposition system where frustrated voters force conflicting priorities on the legislature. they make their own decisions and end up cancelling out and getting the legislature in a corner. we will talk about that and this budget deal with no new taxes and there two radio guys who take credit for that. although the governor will point out they are not always right. we will look at how over the last 30 years it has come to this. why the enterprisial spirit of california does one thing and in sacramento they do something completely different. >> this is not the first time the state has been in crisis. we have these situations and my question is whether or not the

calpers is suing. what the heck, man? that is a -- you know, i can't say -- liable -- libe. l laws prevent me from saying what i think about the ratings agencies, but i don't want to be -- i know it's got a big cash position. but i do welcome moody's people on. we'll have a roundtable with you. we'll go out the dairy queen. the commercial mortgage bonds and the residential, i welcome them. we'll get the brassiere or whatever it is, the brazier, and we'll deal with it that way. invite everyone from moody's to my beach house this weekend. and "the lightning round" is over.ll ket or bear, ket or bear, traders are always hungry for ideas. they find them at td ameritrade. trading's all about strategy. and strategy's... all about information. so: i start my trading day... with td ameritrade's morning perspective. that's interesting... or, look at this... i can mine their weekly webcast for ideas. this is what i need. of course, ideas are just the start. so now i can drill down. heat mapping... heat mapping shows me where the money's moving. 2,500 stocks... one quick glance. cold..

the next thing in the newspaper i read a front page article for the calper's fund that just investedon dollars in the oil and gas industry. so i think we've got to be thoughtful about what we do here. we need to make sure we're providing the capital necessary to produce energy in this country. we're all for transparent markets. they should be transparent. they could be governed and guided, if you will, by supply and demand. but it's difficult to predict and understand, so we've got to be careful that we don't chase discussions surrounding speculation and fail to address the fundamental issues of supply and demand. >> do you think someone could manipulate prices, a large organization, someone, a trading group, a rogue trader? >> when you look at the oil markets, for example, it's a global marketplace. the price is set in a global environment. it's very difficult to take a market of that size and that quantity, it's difficult to understand how someone could manipulate that market. >> all right, jack, thank you very much for joining us. >> thank you for having me. good to talk to you. >