dodd. and from boston, former congressman from massachusetts, barney frank. gentlemen, thank you so much for joining me on this day, the third anniversary of landmark legislation dodd-frank. chris dodd, i'd like to go to you first. we heard that sound from jack lew saying that too big to fail is no longer a reality in america. at the same time, ben bernanke in march said, too big to fail is not solved and gone, it's still here. do you think the problem has been solved? >> well, we believe it has. and obviously only time will tell. you've got to test these things at some point, i presume. but that amendment, the shelby-dodd amendment passed with over 90 votes on the floor of the senate, it was man news consensus around it. senator barbara boxer added language there that made it against the law for the united states government to bail out a financial institution. and as you'll hear from barney, all the mechanisms that were allowed for the federal government to step in are now gone. so it is against the law to do what was done a couple of -- two or three years a

bank, and we're already at our run rate as it relates to dodd-frank. and we're quite satisfied with it. >> what's the biggest impact dodd-frank will have on your business? what can you point to that you've had to change as a result of dodd-frank? >> probably the most powerful thing would be the bulka rule as it relates to the trading activities and making sure we're doing business in a transparent way. we were doing that anyway, and we're not a huge trading company. but as it relates to some of the things that affect our bank the most, it would be that. after that, other than some of the new agencies and some of the new regulations that are coming forward, we've already that built in and substantially is not a big issue. >> let me rephrase bill's question here. is it going to be any negative impact, and can you quantify it from dodd-frank? >> no, no. no negative impact from this point forward. and what little there has been -- for instance, we can't hold equity in nonbank positions, and small things like that that have been measured and evaluated in th

we're talking dodd-frank.he things that have been implemented, the statute of limbations extended to six years from five. that will put steve cohen potentially in the cross hairs. but some things that haven't been done since washington vowed to fix wall street with the act. in the three years, regulators have written 14,000 pages, finalized 155 rules, 243 still set to be written or finalized. only 39% done so far. here's what that 39% has looked like. roughly 4,000 pains a year, steady progress from ground zero. in year one, consumer financial protection bureau was formed to coordinate against predatory lending practices as well as new rules to keep governing some banks there. in year two, banks submitted the first living wills to liquidate them instead of bailouts in the next crisis. in the next year, year three, strict capital rules, hope to keep banks more liquid, so there are a few tenets that happened. we know treasury secretary jack lew said last week that the core of dodd-frank will be done by year end

>> depending on how you count it under dodd-frank alone, 92 at about dodd-frank rule makings and there's a lot of volume some of them are done jointly with other regulators and some of them are -- i think that would be the factor that i would point to and it had been, you know, no question about it. some backlog and when i arrived there, i tried to make certain that we had parallel workspace working on both the dodd-frank rule making and the jobs act. so that we didn't have the same people working on different rulemaking. so i'm hoping to expedite that process. >> the chairman is consistent with the goals to limit regulatory arbitrage. the cftc allows swap trade between our customers and rely on substitute components. in comparison, how will the cftc tree swap trades between u.s. customers doing a swap deal? >> we were able to finalize guidance with a lot of public input and this was one of those where the overseas branches and guaranteed affiliates are of u.s. swap covered by reform. it is because so much of that did come back into u.s. for aid. particularly is a question of a branch, t

it's been up for two years since dodd/frank was passed.row he's going to go run the bureau again. what changes from yesterday to tomorrow in the fact that he is now officially confirmed to head this position? >> well, today, tomorrow, what we know for sure is now this agency is here to stay. no more clouds over what it is legally entitled to do, no more attacks that say maybe we're going to be able to undercut it in this way or weaken it in that way. we have a full-fledged watchdog. the one we fought for. he's going to be there to fight for us. i love it. >> well, i don't blame you for loving it. it is an amazing thing to see something -- >> it is. >> i remember reading, you wrote a piece in a very, very small policy journal called "democracy" which still exists and turns out great stuff. i remember reading that piece that proposed this idea. you basically said you have this great metaphor, look, if a toaster, if one in ten toasters blows up in a home, we take that off the market, have a consumer product safety commission. why can't we hav

who put the dog in dodd frank he got that a little bit wrong then he got that wrong jack reed would say today that he he regrets those words and mr schumer unfortunately because of this they have made singapore and london the financial capital of the world because with investment banks no no national borders and we talk about competitiveness what is it competitive that goldman sachs for example with its thirty two thousand employees has five thousand in london they are not american foreign exchange students they are london citizens paying the london payroll taxes this competitiveness is a feel good word that actually means exporting american jobs what it could also mean regulatory arbitrage and not only between different countries but even in the states that we have them right yes regulatory arbitrage is the same thing as when a teenager wants the car keys and mom won't say yes so they go to dad so if you don't like the rule in the united states go to where you like the rule and pretend that you're operating there i say pretend because this is all d

there's something known as dodd/frank. >> i want to address what adam said. if you think the government and the white house did it for the businesses, you are out of your tree. read the "wall street journal." they said it's because the rules had not been written by the government to give those very businesses guidances,s and the computer systems weren't even in place. it's because the government and the white house can't get its act together. has nothing to do with the businesses. >> you don't think they're >> w. >> ben -- >> you don't think they're listening? >> here's what i want to ask you. is this thing falling aapart, or is the president being too crafty for words and finding a way to have his cake and eat it, too? >> i think the whole administration is falling apt. the incompetence is unbelievable a. he's never yet submitted a fully comprehensive budget. he's been in office for 2009. never been able to complain benghazi, explain what happened with the irs. this administration is just falling apart. >> i asked you about the affordable care act. the two b

what it's about is gary gensler attempt to close the major gap in dodd frank which basically lets the american banks operate with out reform regulation provided that the e-mail account on the e-mails ends in dot u.k. or dot caymans that is to say they book their transactions in london and so he is playing a high stakes game with his fellow commissioners there's five to get i three to vote on the guidance. part of this complication of how a bill becomes law that will say no you have to obey the full suite of american laws even if you operate in london whereas we need a five person commission or it all boils down to one commissioner his name is mark wage and he's the third democrat he is undecided and he is not sure what he's going to do and gary gensler is so far kind of been losing this battle and he's. is going to be removed or he's actually going to be out as a completion or is his replacement going to do any better it is hard to imagine somebody bringing more zeal and experience and knowledge of where all the bad stuff happens then gary gensler remember many of us were very nervous

what it's about is gary gensler attempt to close the major gap in dodd frank which basically lets the american banks operate with out reform regulation provided that the e-mail account on the e-mails ends in dot u.k. or dot caymans that is to say they book their transactions in london and so he is playing a high stakes game with his fellow commissioners there's five to get i three to vote on the guidance. part of this complication of how a bill becomes law that will say no you have to obey the full suite of american laws even if you operate in london whereas we need a five person commission and it all boils down to one commissioner his name is mark wage and he's but there are democrats he is undecided and he is not sure what he's going to do and gary gensler is so far kind of been losing this battle and he's going to be removed or he's actually going to be out as a commissioner is his replacement going to do any better it is hard to imagine. body bringing more zeal and experience and knowledge of where all the bad stuff happens then gary gensler remember many of us were very nervous t

rules that deal with derivatives this is a seven hundred trillion dollar industry well dodd frank just celebrated its three year anniversary and many of its statutes have not been implemented and made into rules this friday an exemption to a key statute is expiring the big banks are pressuring pressing the head of the c.r.t.c. gary gensler to extend this exemption that has trillion dollar implications here to explain all of this is bart naylor a financial policy advocate a public citizen thank you for joining me thank you for having me let's jump into this july twelfth expert expiration to tell us what. what it's about is gary gensler attempt to close the major gap in dodd frank basically lets the american banks operate with out reform regulation provided that the e-mail account on the e-mails ends in dot u.k. or dot caymans that is to say they book their transactions in london and so he is playing a high stakes game with his fellow commissioners there's five to get i three to vote on the guidance. part of this complication of how a bill becomes law that will say no you have to obey th

guest: dodd frank is a huge sweeping piece of legislation.t is comparable to a obamacare in the financial world. it does ising that it tries to prevent an economic slowdown like we saw in 2008. the way it does this is a variety of different mechanisms but one of the biggest mechanisms as to the creation of the consumer financial protection bureau. this the brainchild of elizabeth boring -- elizabeth warren. it gives the authority to make sure that some of the laws in the housing market, as well as some of the banking laws are rewritten in a way -- ask you about the vocal rule. this gets complicated unless you are an expert in financial market. it involves banks and trade. is when youm line get to international markets and , really whatments happened as one of the biggest criticisms of 2008, the biggest , its that were bailed out was argued they did not have enough savings in their bank accounts. some of the provisions in dodd frank are requiring banks banks sohave additional savings they would not have to tap into government funds and taxpaye

tracy: what is going on with dodd-frank?ial regulate to, you're right, they march up to capitol hill every six months or so for a periodic grilling on implementation of dodd-frank reform. one senator continued to hammer them on issue of too big to jail. why more financial executives did not get prosecuted for the financial crisis. >> i understand it's different when you have supervisory responsibilities but you have the responsibility to see to it that this law is going to be enforced. part of that is taking people to trial. that is one of the tools in the tool box. >> well it is, a tool, but actually we have, i think, a more, in some ways a more immediate and effective tool which is exercise of supervisory requirements and getting people to change what they have done. >> governor turillo of the fed says that includes fines an penalties which senator warren noted are often through settlements. ashley and tracy, back to you. tracy: that means not a whole heck of a lot. peter barnes, thank you very much. >> you bet. ashley: le

dodd-frank does not deal with criminal law.deals with regulation which are civil in nature, not criminal. i think that is a question you have to be asking the justice department. it is curious. there has not been much in the way of criminal prosecutions and accountability and even when civil cases are brought, they are brought against a bank or corporate entity, and not the individuals. you want your enforcement strategy to change behavior -- to make behavior better and create incentives for better behavior. if you are just going after the bank, it is the shareholders. has taken to trial one trader from goldman sachs. this from the is this day section of "the new york times pick of that trial is wrapping up and it says the case will come down to how the nine jurors tourre. the that you of limitations is running out. -- the statute of limitations is running out. you call it has run out in some cases -- guest: it has run out in some cases. there is a strong case. we will see. because these instruments are so complex, the vehicles

here is a story worth telling today happy birthday franz kafka and old dodd frank two years ago president obama's side into law a twenty three hundred page bill that was supposed to fix our financial woes. gary gensler was given regulatory control as head of the sea up to see over the lion's share of the seven hundred trillion dollar derivatives industry and he went to task on creating thousands of new regulations but he forgot something he was supposed to stay on top of the futures industry which is why this the up p.c. was created in the first place let's see it stands for a commodity so his old boss at goldman sachs that would be john who are going to profile today he blew up in the global and he threw the entire futures industry into disarray and mr gensler did nothing for four days then promptly recused himself from the entire matter we're going to talk about this with james cook tulis president of the commodity customer coalition in just a bit well gensler is on the way out ever had after having lost a major battle over to reduce regulation with his fellow commissioners in just nine

the dodd-frank act was sold as a way to rein in wall street.t's turned out to be the perfect excuse for big brother to worm his way into our lives and privacy. actually, big brother doesn't have to worm his way in. dodd-frank opened the door and invited him in. that's what this lack of oversight is signaling. go ahead and collect millions of consumers' information. don't tell whawrs a using it for. and don't feel the need to tell us much of anything else because this director and this bureau will not be accountable to congress. meanwhile, the message we're getting from the bureau and some of my colleagues is that congress needs to sit back and butt out of the bureau's business. we're hearing the message that asking for congressional oversight is akin to wanting consumers to be deceived and criminated against. let's get one thing straight. northern of my colleagues that protecting consumers is important. we all want consumers to get a fair share and be able to make informed financial decisions. i never envisioned the federal government making yo

not even half of dodd-frank has been implemented.t and there is a great deal of uncertainty. >> biggest risk that you guys think about. >> it's the risk that you don't see. the unknown risk that is the most challenging one. if you think about it from a policy making standpoint, we're in the midst of a deleveraging. and you see those different case studies playing out in the u.s., europe, japan. and the big risk is that policymakers get that one. and i think the highest risk of that being the case is in europe at the moment. >> okay. one final question for you. we had a guy on, mark leibovich, a book called "this town" and it's about the revolving door. you went from washington to wall street. how do you think about that issue? >> well, i think that you can see the different models when you're dealing with people from different countries. obviously there are pros an cons to each. i think there is a real vibrancy that was within our systemd cons to each. i think there is a real vibrancy that was within our system where you can draw tal

wants to soften dodd frank a top e.u. official handling the financial services talks so the e.u. is not seeking to weaken its own or the u.s. achievements in developing legislation that strengthens financial stability negotiations kicked off yesterday in washington d.c. but we're not without their own a drama last week a report was weeks that the u.s. had been spying on the e.u. negotiators edward snowden as the source of the believed to have leaked these reports france and germany were outraged in some parliamentarians called for suspension of the talks we've heard before that trade deals are done behind closed doors and largely secret which is a far cry from the standard of democracy and transparency expected from public policy only if you have access to what's going on behind those doors but least you know a little bit more about it. stay tuned because coming up geoffrey tucker no talk of the future of fed policy interest rates and an impossible gold standard then i are to correspondent margaret hold over the recent surge in consumer credit. i would rather ask questions for pe

kicking off with a very special look at the state of financial reform three years after passage of dodd-frank speak with the lawmakers behind the legislation, former senator chris dodd and former congressman barney frank, about too big to fail, consumer protection and the pine line running between pennsylvania avenue and wall street. >>> plus, a conversation about the conversation on race in america. we'll discuss the president's historic remarks with harvard professor charles ogle tree, plus panelists bill burton, margaret carlson and luke russert. >>> and, get ready -- we are officially on royal baby watch. we will discuss the costs of maintaining a monarchy with our resident brit, martin bashir. >>> all that when "now" starts right after this. [ female announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200

i wouldn't want to -- >> that might be part of the problem with dodd/frank.ow, but i think there is that fear out there with the increase in mortgage interest rates, a lot of us, me coming out of the real estate background, a lot of us finally said maybe we should have been watching what your comments were going to be and maybe they clued in, but what i'm really concerned about is that, and this is at some risk to myself of maybe not having a very warm welcome next time i'm up in new york city visiting some of my friends up there, but i'm concerned that wall street is too dependent on the fed and sort of the signals that you are having while main street is really getting buffeted about whether it's interest rates, tax policy, certainly regulatory policy as well, and we need to make sure that we're moving beyond that. i'm sure, who knows, maybe the market just took an uptick based on my comments or maybe they took a down tick, who knows. we know they will be following your comments much more closely but we have to make sure this is about main street, not about

the third anniversary. >> we want to focus on the dodd frank bill. is,kevinthe phone cirilli let's take a step back. what are the main provisions of dodd frank and what impact has ahead on wall street and on banks? guest: it is a huge piece of legislation that really is comparable to obamacare in the financial world. what it really does is, the main think it does is try to prevent an economic showdown like we saw in 2008 from happening. through a variety of different mechanisms, one of the biggest mechanisms integration of the consumer financial protection brainchilds is the of elizabeth warren hole was a harvard professor and has since gone on to become a massachusetts democratic senator. lawlso rewrites some of the s and gives government authority to make sure that some of the housing market and the banking laws are rewritten to aim 2008 from happening. about theme ask you vockel rule. this gets more complicated. banks and traits. can you explain that? rule as you get to -- we get to international markets and trading agreements, what really happene

despite this, years after dodd-frank was passed, this unique situation remains. my concern is that if you have one inspector general trying to cover two different entities, the end result is that neither gets fully overseen. in other words, we don't have adequate checks within the bureaucracy to make sure that laws are abided by and that money is spent according to law. since the passage of the inspector generals act of 1978, congress has believed that each department and each agency needs its own independent inspector general. this has been a long-standing, bipartisan position. currently there are 73 inspectors general in every single cabinet-level department, and almost all independent agencies. even small independent agencies like the federal maritime commission and the national science foundation have their own inspectors general. in each of these agencies, if each of these agencies have their own independent inspector general, shouldn't the consumer finance protection board, particularly since this board doesn't have to come to congress for appropriations, y

dodd/frank lays out a strategy. basel three provides additional support through capital, et cetera, but if those things do not make us comfortable about the status of the largest firms, i think addition yam steps would be appropriate. >> then we need to look at other steps. as you know, i have introduced along with senator mccain, senator cantwell, senator king, a glass/steagall bill, another tool in the toolbox to deal with too big to fail. i think at least now we have some time. the secretary of the treasury says by the end of the year, you say maybe a year longer but we have to keep this one under examination. fair enough? >> yes, i think we obviously want to look at all tools. i think there's probably more scope for capital. >> yeah. >> if we're not comfortable with the stast of these firms. >> good. and fair enough on that. i want to ask you, as you know, the federal reserve and the o krsmth c announced last january that they were stopping their investigation into this systemic foreclosure fraud and that you'd

no question. >> we mentioned dodd-frank earlier. tougher for you knowing you've got different rules all around the world? i mean, you have seen constop dags in the exchange space. you have in dodd-frank lots of talk and speculation that perhaps europe will have a whole different set of rules than the united states. how difficult does that make your job in terms of oversight? >> you clearly have to recognize that reality. we've been facing that most recently and obviously in the derivative space, which is a peculiarly global market. lots of regulators in that space. s.e.c., since i arrived, has put out a cross-border proposal to let market participants around the world know how the rules will impact them in the very global markets. you have to deal with that. >> this is one issue that i think the bankers are very concerned about, derivatives on exchanges. are you worried about a negative impact on the industry as a result? >> i mean, you always look at the impacts of your rules. you look at investor protection. you look at making sur

dodd-frank gives regulators power to fine traders for such techniques. it was the first fine ever of its kind. as the cftc attempts to crack down on market manipulators, technology is allowing firms to get an edge on the trading market, but perhaps not as much as first thought. stephanie hammer, author of "architects of electronic trading," is on set with us this morning. good morning. - morning. - are most large trading firms using the technology that is available? - they certainly are using it. there are firms that are ahead in technology utilization and firms that are playing catch- up. i would say that the smaller, more nimble firms are enjoying an edge in the utilization of technology. paradoxically, the financial crisis acted as a brake on the adoption of new technology, because people were worried about overspending. but now they're reevaluating how they can apply technology and adopt it to solve their business challenges. - so why is it the smaller firms, then? - there's less bureaucracy in smaller firms. - so it's easier. - it is, and they also

this is the nugget in the dodd/frank bill. cheated by unskcrupulous actions and at the same time, while i voted for dodd/frank because it was better than not doing anything and if you have things in it like the consumer protection agency, it also failed to address some other significant issues. the big banks that are too big to fail are much, much bigger now than they were. nothing was done to get rid of what i called naked credit default swaps that was just flat out gambling by some of the largest financial institutions. that puts the american taxpayers at risk. there is a lot yet to be done and the administration is going through writing rules and some of these are delayed. i still think we're far short of the solution that is necessary. >> and a lot of people have told me that the cfpb was probably the best single thing that was in dodd/frank but the rest of dodd/frank we talk about the delays. it was 62% of the provisions have come in and been implemented behind schedule. one of the most talked about features is the so-cal

. >> we need to use all the tools in dodd/frank to make sure we end too big to fail. if we get to the end of this year and we cannot, with an honest straight face, say we've ended too big to fail, we'll have to look at other options. senator warren, also calling for revival asked ben bernanke whether he agreed with what jarks lrk ew was saying. >> i don't know about the timing. maybe i take another year from now, but i said to you in another hearing that there is a strategy. dodd-frank lays out a strategy. bosil 3 provides additional support through capital, et cetera. but if those things do not make us comfortable about the status of these largest firms, yes, i do think additional steps would be appropriate. >> you remember lew yesterday laying out an aggressive timetable for implementing remaining parts of dodd-frank including the vocal rule. so lew telling other senators, especially those from his own party which are advocating for tougher bank laws, to wait until year end when other laws will be implement implemented. >> but he's not saying now, right? >> warren w

morgan to skirt the dodd frank it will expire if the exemption is not renewed really ends and derivatives could be thrown into disarray meanwhile the latest jobs report beat expectations today good news right wrong at least for mr market because that means the fed might be getting out of the money printing business sooner than expected it's a topsy turvy world we're going to lay it all out for you today as we deliver what's in your run for us. almost two years after he tanked m.f. global john corazon returns to the spotlight in two thousand and eleven the former new jersey senator's firm dipped into customer accounts in attempts to cover losses on european sovereign debt trades a scheme with uncanny similarities to our favorite ok playing juvenile delinquent. if you had access to a car like this would you take it back right away. neither would i. well corazon had access to the m.f. global car borrowing customer money for short periods of time usually returning it by a day and that is until and until the car crash and dealer i mean corazon he got away scot free now earlier i spoke with jam

and response to the financial panic of two thousand and eight it was passed into law under the dodd frank. act and is currently being implemented by the f c c c f t c o c c and the federal reserve but this has turned into a bit of a drawn out process today the f.c.c. chair white said implementation of the volcker rule under extraordinary complex rule making quickly walk you through this process first before regulators publish their joint proposed rules all the way back and october two thousand and eleven there was a four month comment period after that which got extreme pushback from banking groups saying it would be way too costly and that it was just filled it with loopholes even paul volcker criticized the rules saying that they were too complicated and should be no more than just four pages then the c. f.t.c. who published their proposed rules which were over one hundred pages and during that comment period over seventeen thousand comments were made in july of last year the fed announced the banks have two years to conform with the rules but these rules have yet to be implemented occu

they don't like dodd-frank. so they're going to -- [inaudible] but they said we'll work out a comprise with you. what we'll do is relegislate that issue. what we'll do is set it up so we can defund the agency. then we don't have to worry about richard cordray. nlrb these people are tainted. there's no a single word in any record any place that depose of the three in the nominee. not a single word. my friend senator mcconnell on the floor said it's big labor. big labor? 6% the private sector is represented by organized labor. do you think that organized labor should care a little bit having a secretary of labor. having someone who works with the "cosmo" poll motel in las vegas, caesar's palace, do you think those maids, valet parkers, janitors should have somebody to -- represent them when they fire them or there's a labor dispute? the nlrb goes out of business august 1st. so we're not interested in cutting a deal topaz one, two, or three nominees. the president deserves to have his team in place, and there are n

the advanced approach is talking about the credential requirements mandated by the dodd-frank act that multidimensional approach with one of our largest institutions. at the same time as i discussed in my opening remark, i think the capital global proved to be quite workable without unnecessary operational necessity. it will assess the changes to the proposal and will be responsive to the concerns, including the one that was proposed. we can confidently proceed with capital plans and business strategies and as i read through the notice, i realize this took hours of hard work and i want to again recognize the staff that went into achieving such a balanced result. i would also like to thank the governor for his leadership in this effort. he has been relentlessly determined to create a strong capital regime with sturdy safeguards against arbitrage. we have spent endless hours and negotiation within the international community here in the u.s. and i will admit it is occasionally messed. but it shows our financial system to come and it is a rule that i'm proud to support. >> thank you. >> t

isn't this -- we got dodd/frank.- we wouldn't need dodd/frank if we did glass stegeal, would we? >> probably not. but i don't think her bill is headed to become law. >> should i ask her why she's bothering? they all do this, just for -- what is it? >> well, look, you know, people disagree. there ray lot of things that get proposed in congress that don't go anywhere. i believe john mccain proposed this bill as well in the past, but no, look, there are people who think that there was a fundamental problem in -- during the clinton administration when they removed the barriers and they're going to try to push it back. but i think the world moved past that. >> that might be our next fed chairman, same guy. right? larry summer. >> could happen. would that make you happy? >> i like larry. i want my daughter to get into harvard. a friend of mine, so -- all about me. all about me. >> it comes back to you. >> anyway, thanks, john. >> thanks, john. coming up on the show, financial earnings, congressional testimony from ben bern

regulations but entrusting li anough the white house is insisting that dodd frank is not included in the transatlantic talks however wall street and european finance ministers do want these financial services regulations included senator sherrod brown have brought up the point that the industry will use any means necessary to rollback dodd frank which could be accomplished in trade talks that many corporations are largely involved in the u.s. trade representative assured during his senate confirmation that the negotiations would not watered down too big to fail regulations. there's nothing that we are going to do through trade agreement to weaken our financial regulation to rule back to frank or to roll back the efforts of the ministration congress worked on for the last four years to reform our financial regulatory system here and to work with the g twenty and other mechanisms to raise the standards around the world. rules surrounding derivatives trading are some of the most controversial provisions and died framed they fall into multiple jurisdictions and would work. why are intern

landing at the height of the financial panic thank you bloomberg and mark pittman for that that will dodd frank prevent a repeat of or rhyme of two thousand and eight justin underhill interviews x f.d.i.c had sheila bair on too big to fail in just a bit and here is the what and your prime interest. m.m.t. or modern monetary theory it emerged in part from the writings of warren mosley or in his book seven deadly fraud frauds of economic policy it's a model of the economy that relies on precise definitions of financial assets such as u.s. treasuries and it also incorporates national accounting identities such as the g.d.p. recently i spoke with mr mosley about the importance of these identities within the m.m.t. framework here's what he said. loans create bank deposits to the penny so if you borrow two hundred thousand dollars to buy a house you take out all for two hundred thousand the bank gives it two hundred thousand were sold the house the bank now has a two hundred thousand dollars loan and there's been a two hundred thousand dollar deposit that didn't exist before and it's a bank liability

the senate is talking about even ending the filibuster just as republicans are refusing to allow dodd frank to be implemented part of the problem with these reforms is they're not allowed to be implemented you've got a supreme court that allows corporations to buy our political system so we've definitely had regression in the last few years i don't deny that at all but there are certain things we still have in the thirty's we still are still security we still have medicare from the sixty's yes the republicans are trying to abolish it but they haven't succeeded as of yet so we do have some remnants and i do think reform can work i guess my question back to richard is are you saying that we should have referenda on whether exxon should purchase an oil plant we should have referenda on whether apple should build a new i phone surely you're not saying that people go to vote on every corporation's business are you richard go ahead. no i'm not saying that i'm saying that we can be just as creative and inventive in figuring out how to get democratic control of corporations not every decision not t