i think it is an intended consequence of dodd-frank. when i see dodd-frank trying to achieve what i call the fannie mae style model of financial markets essentials what the model is is we are going to be so marked power, bestowed too big 2 sales status to certain entities and once we have essentially giving you those monopoly profits government will come back and demanded kickbacks the profits to favored constituencies. let's keep in mind a perfectly or near perfect competitive market does not offer rent, which government to redistribute. i should say as an aside, formalized this in the 70s and one of the better descriptions of how government works in practice. note is mentioned, jay richards talks about the center for responsible lending, a lot of detail, a lot of discussion of their activities. during my time on the banking committee and was lobbied regularly by cra, a my bill as far as to say i got along with them, disagree with them on a number of things but i do want to emphasize, jay richards makes this point, it is a symbol of a

>> i think definitely it has to do with the dodd-frank act which became law in 2010 and the dodd-franks an enormous, long, complex thing. they still haven't got all the, the regulations written that are stipulated in that act. so, that has a lot to do with it but, it's a very strange world we're living in, in financial terms these days. the fed is holding interest rates down at rock bottom. they're are all kinds ever strange things happening, and i think you also have to keep in mind that public interest theory suggests that, regulators do have their own career interests involved with what they do. if you don't have somebody to regulate, you don't have a job. david: so in other words, the more notches they have on their belt the better it is for their career as bureaucratic regulator? >> just more regulators and cfpb, the new consumer -- david: let's talk about that the liz warren creation, she was at least the brain behind it, consumer financial protection bureau, was part of dodd-frank. there is no congressional oversight. this is a body that answers to the federal reserve which of c

we have under dodd-frank systemically important financial institutions and that is your credit card--jargon for too big to be allowed to fail. certain institutions depending on size and assets are dumped important financial institutions. all the provisions aren't bad but simply doing that reinforces the idea of too big to fail. the other thing dodd-frank does is what i'm most concerned with, the consumer financial protection bureau, it sounds very nice. look at the logo, , what is not to like? it is about protecting consumers. just up here across the street from the old executive office building and i predict it will outgrow its space in a few years. consumer protection bureau is a sovereign entity unlike any bureaucracy that existed before. not under the control of congress but the fed chairman and board don't have a lot of

bill, even before it was known as dodd-frank. it is nicely told in the book. then senator dodd will comment followed by my distinguished colleague and bob is an associate editor of "the washington post." he has been there since 1963. he started right after the day of his birth, i think. [laughter] >> he serves as a foreign correspondent in saigon and in moscow. he is the author of seven books, including the news about the news, so much money, the triumph of lobbying and goshen and transgression of american government and most recently the act of congress. he also wrote a book about vegas and you should also check out. he is a graduate of the college and received this from the london school of economics. and chris dodd is part of the motion picture association of america. it not only guarantees that his book will be made into a movie, but that senator dodd is played by somebody really cool. [laughter] i hope so anyway. [laughter] >> senator dodd served in the united states congress representing connecticut for 36 years. thirty year

you talked about the top priority of dodd/frank. but what else is on this economic agenda that you just referred to? what's the most important thing that he has to get done. >> well, of course, the president's got fiscal standoffs heading up with congress on continuing to fund the government, figuring out what to do about the sequester, whether the burdens of the sequester get rearranged. and also to raise the debt limit so the government can continue to borrow money and keep operating. we had a crisis in the summer of 2011 when congress refused to raise the debt limit. that resulted in a downgrade. the administration believes that a debt crisis is the only thing that could really push this economy into recession. they've got to figure out a path to avoiding that. >> back to dodd/frank, why is the regulation writing taking so long? >> very complicated law. i was talking to a veteran. bush administration today, and they said the regulators are taking a lot of flack for this, and the mismatched parts to build a new car and do it fast,

perhaps, that is why the national association of homebuilders says dodd frank and grind the system to a halt. because of the dodd frank act, washington has more control over who can buy a home than your local banker. the path act addresses these devastating rules head-on, getting washington out of the way to allow banks to lend, builders to build, real close to sell, and home buyers to buy. the path act entirely eliminates the qualified residential mortgage issued by striking the dodd frank credit risk retention requirements in prohibiting federal agencies for requiring risk retention or premium catcher reserve accounts. it eliminates the troubling ability to pay liability exposure for lenders for the mortgages they are willing to hold in their own portfolio or securitized through the platform created by the path back. i know that some have claimed that somehow the path act is ideological. that is a word you hear more in washington. it seems to me that those who would defend a failed status quo of taxpayer bailouts, economic crisis and mediocre homeownership rates, perhaps these are t

is there a likelihood that as a result of this ross us -- of this process that we might see dodd frank reform? >> i am encourage. it is clear as a conservative republican, i have not been a fan of dodd frank although i certainly have a great amount of respect for its author, chairman frank, who is clearly one of the smarter people i have met which does not mean he is right or correct. you would have to ask my colleagues on the other side of the aisle -- i fear some have a more religious adherence to the brands then perhaps the named authors of the act have. when you look at what the regulators have done with qm, what is calm -- contemplated by qrm, i think that is unsustainable. i do not know how you could ultimately sustain a housing finance market if you cut the number of mortgages in half and doubled the price on the others. that clearly could be the outcome, perhaps the worst case scenario. i think there are a number of democrats in the house financial services committee although they are committed to the fundamentals of dodd frank, are certainly looking for room for improvement. i

i'm going to ask you bluntly, where are we, have banks stopped the practices that landed this dodd frank remains about half undone. this was the recasting of an entire u.s. industry, frankly global industry. the time has come to put an end to the uncer high is congress prioritizing these regulations in the which changes dodd frank. >> at what point, do you think major issues.nts can start to congressman, we thank you so much for your time. >> straight ahead, a story that is sure to bug you. we'll tell you why these big watches maybe nature's exterminators. >> over the last week, puig lost luster, but the shape was back. details coming up on aljazeera sports. >> it may sound like the title of a horror movie, but the attack of the killer wasps may be a good thing. they're larger than normal, but they can't hurt us. they kill those noisy a noisy c. right now, they are mating, so there's likely to be a lot more of them. now to sports. it's sports time. i was so shocked by the wasp story. >> i hated to break it up, because it seemed you were having a great time with that story. >> rookie sens

where do you think we are on implementation of dodd-frank.setback after setback. they could be confident enough to get back to business. >> it's been a very low tough slog to finish up dodd-frank implementation. look, in defense of the regulators, they were handed a huge task in implementing dodd-frank with 13 or 14 titles, hundreds of pages long like the health care bill referenced, and it takes a long time to get this done and get it done right. i think the president is trying to speed them along a little bit. he has to be very careful though because several of the agencies meeting with are independent agencies. white house is not supposed to be having an active role, but a-political independent of the white house. we can encourage them to speed up the process, but they have to be careful pushing too much on policy prescriptions. >> yeah, peter barnes, turn it over to the ben bernanke replacing ben. now, bloomberg did a survey of economists saying janet yellen is the political candidate, but political wonks have another guy in mind with lar

that was the whole intent of dodd-frank.t has slowed things down in an important part of our economy, and do you think that was the spirit of dodd-frank? >> no, i clearly -- it was not the intent of dodd-frank to put brakes on the economy. i think what's happened, though, is you have a bunch of very complicated topics. some of them will make the business of being a bank more expensive, and perhaps more cumbersome. but i think one of the key elements that -- at hightower, we built a business around solving for -- you have to have a business that's lined up both to make money for the business and its shareholders and at the same time not compromise doing what's in the right interests of the client. i think many institutions are still struggling with how do they generate earnings for shareholders and at the same time not compromise doing what's in their clients' interest. that continues to be a major -- a major challenge facing our industry. >> can they really implement volcker rule when you can't even -- they can't even write

but you didn't need dodd-frank. dodd-frank goes beyond just capital. there are costs involved new york consumer agencies -- >> neil: already seen atm fees, no longer free checking. >> we reported today. neil: how much more? >> we reported this today. fox business reported that jp morgan is going to spend billions of the next year in regulatory sort of compliance costs. that comes out of somewhere. that is going to be -- the customer is going to pay for that. >> neil: in what i would? >> higher fees, you name it. no more free checking. that's a thing of the past. and i think the more simple way to do this -- the only thing i can think of why the president doesn't want to break up the banks, he likes regulating big banks. that's where the money is. he can go to the banks for campaign contributions, and when the federal government is focused on seven institutions, it's easier to basically extort what it wants from them. that's why i think he doesn't want to break it up. if you break up the banks it be easier to regulate. >> neil: we could still have anoth

no, that distinction belongs to the dodd-frank act, our current law.hief economist mark zandi of moody analytics recently testified before our committee that one single dodd-frank rule, qrm, currently in the pipeline, could increase mortgage interest rates one to four percentage points. so core logic, a company that you know, analyzes financial information has said a about half of the mortgage loans made today would not qualify with dodd-frank rules that go into be effect this january. in other words, sickle -- single handedly the dodd-frank act could cut the number of mortgages in half and double the cost of those that remain. it's that bad. perhaps that's why the national association of home builders has warned that dodd-frank, quote: could grind the housing finance system to a halt. right now because of the dodd-frank act, has more control over who can buy a home than your local banker. the path act greatses these devastating rules -- addresses these devastating rules head on, allowing bankers to lend, realtors to sell and home buyers to buy. the pa

as you know these kinds of well the whole purpose of dodd frank and bills like that is to restrict wall street regulation now but i regulate wall street or you. i certainly would the republicans are against that but that's the thing that can get us into a massive recession now a little more government spending on infrastructure and so your thoughts on the federal reserve is they're just keeping interest rates artificially low and they really don't have a hand in any of this i mean what happens if they decide to bail out wall street again isn't this setting another president we should not bailed out wall street and the federal reserve is keeping our artificially low interest rates but that's ok because in the inflation rate is artificially low if inflation starts kicking up to two three four percent i'll be against quantitative easing right now unemployment's water problem that into then inflation so that's why the federal service doing what they're doing mark levine thank you so much for joining me always a pleasure yes. joining me is a mirror from break in this lovely producer that. we

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

it's clear as conservative republican i've not been a fan of dodd-frank although i certainly have incredible great amount of respect for its author chairman frank. clearly one of the smarter people i have met. doesn't mean he's right or correct. i must admit, i believe -- you would have to ask my colleagues on the other side of the aisle it's said in washington. i fear some have a more religious adherence to the brand than perhaps the named authors of the act have. personally, when you look at weather the regulators have done with qm what is contemplated by qrm. i think that's unsustainable. i do not know how you could ultimately sustain a housing finance market. if you cut the number of mortgages in half, and double the price on the others, which could clearly be the outcome. i think there a number of democrats on the house financial service democratic national committee. they are committed to the -- are certainly looking for room for improvement. so, you know, i've been in congress for a few years, if you're not an optimist, it's not really the job for you. i prefer to remain optimistic ab

when you have 2,000, 3,000 pages of dodd-frank, there needs to be rule writing with that big law. that takes time to do. unfortunately, when you take that much time to write the rule, there's uncertainty in the marketplace, one of the reasons i think it's hurt volume, people don't know the rules that are written. but we're getting there. we'll have to get this behind us and move forward. it kind of reminds me of stoxle when they thought it was way off, it would cost them more, but now you don't hair them talking about it, because they are complying with it. whether you call it dodd-frank or something else, it was very important for the united states government and throughout europe to put in regulations to what i like to call adult supervision. there was a runaway going on in 2006, 2007, 2008. >> right. >> and if we didn't do something, we could have knocked ourselves back into the stone age, and that would not have been good for anybody. >> yeah. >> as much as you don't like dodd-frank or you do, we have to make sure there's no unintended consequences to make us anti-competitive

dodd-frank, impact on retail won't have much impact.ancial holding companies rules will have a bit of impact but buecause we are overcapitalized, we hold our position. >> bet are than half is retail banking. td reported it is closing branches and it has been closing and merge be u.s. and canadian branches to keep cost and expenses down. what are you doing in your business to address that issue? >> well we've had an ongoing cost reduction and efficiency program, which you know, is very focused on making sure we have positive operating leverage. so revenue is growing at a faster pace than expenses. and it is ongoing. we've got a target of getting our efficiency ratio down to the who 40s. we have steady progress. it is moving in the right direction. it is a bit of an ongoing -- yeah, sorry. >> i was going to ask, be bank branches an old-fashioned thing or are they still crucial? still critical in this mobile la banking era? >> they are absolutely ruscruci. when i took over as ceo 13 years ago now, technology is growing quickly and branches

, the consumer financial protection bureau which was part written on the dodd-frank. have clients in financial-services. i know that is making them very nervous. people are just not hiring companies because they just don't know. if they are going to be able to have the money on hand to deal with the compliance cost of all these regulations, especially small businesses. right now we're waiting to see if congress and the president can work out something on the bush tax cuts expiring in january. many people know that $250,000 is what a lot of small businesses are in. and they file their taxes as individuals. they're certainly not going to higher taxes will go out. when i hear things like that, i just don't think the solution is more money. the president threw money at this problem. unemployment is still have about a percentage. c-span: what do you think of the black caucus as an organization? >> it has become relevant in my opinion. because it -- the better question is, what has the black caucus done for blacks with respect to education, incarceration rates. we just talk

i do not think it is always in the news. >> that is something -- dodd frank was signed three years ago. tank you for breaking down the numbers. >> thanks for having me. >> a committee has been formed to make a bid for d.c. to host the games. they're claiming that d.c. would be the best lace to host the olympics because of the heightened security status meaning that there would be no need to worry about public safety. what hosting the olympics help the local economy? for more, liz wahl. >> the u.s. capital attracts millions of tourists each year. >> d.c. is known for its politics, monument, and museums but there is one thing one washington-based group says is missing. >> washington, d.c. is the only world cap below to never host the olympic games. of all the major capitals, we feel this is the right time for d.c. >> the district is among the cities busy -- bidding to host the 2024 olympic games. hosting the games has historically been a wonderful pride. the hope is that it will generate big bucks. >> it would entice people to come here. >> he would boost the economy. -- it would boost t

dodd-frank is designed to revamp the nation's financial system and the consumer protection act t. would implement the most comprehensive oversight and enforcement reform since the great depression. >>> "the butler" cleaned up at the box office. it stars forest whittaker and oprah winfrey. lee daniels "the butler" day bud in the top spot with $25 million in ticket sales. "the mill letters" hung on to second place and last week's number one, "elysium" dropped to third. >>> anne-marie, take a look at one very expensive car. this sold at auction for $27.5 million. it was one of justen built and owned by a man from north carolina. they want the owner to take it out of the garage, drive it, love it, share it with others. they are donating the money to charity. a very generous donation, i'd say, anne-marie. >> indeed, brought that family a lot of joy and speeding tickets. maybe one person more speeding tickets. marley hall in new york. thank you, marley. >>> straight ahead, your monday morning weather, and in sports the red sox/yankees rivalry reheats when a-rod gets plunked by a pitch.

and we are also challenging the dodd-frank law because we have seen the hbit that heis wrecking on the financial industry. we are also weighing in challenging the president's constitutional power. talking about hisappointment to the consumer financial protection bureau. the obama administration is challenging the constitution time after time. and they are pushing right back. lou: greg abbott, we are delighted to have you with us and we wish you success. thank you so much for being with us. lou: on that, senator mccain talks about the immigration debate. and the "chalk talk", we will show you how that might be a little uncomfortable for t lou: senator john mccain is making a lot of friends in the republican party. in this interview was a lot of rambling. there he slammed my colleags at fox news. calling their coverage of the immigration legislation debate so let's take a look at it the senate. you are part of president obama's new best friends forevr. just today. >> don't get me wrong, you have earned the applause. >> to joke it would be a tough choice is the candidates were senator ran

dodd-frank, i stand in line at the airport with senator dodd like you were talking to barney frank.re's been over correction to a serious problem and so we need to bring back to a balance. that's what this trade association banker association of america is trying do. we in the press are trying to get the word out. balance, balance, balance, don't over correct at this critical time where we need housing coming back strong. >> gentlemen, thank you very much. >> thank you. >>> president of nintendo joins us today. do you want to know who isn't a fan of what he does? colorado rockies first base coach. >> you play video games >> yeah. >> that's what the rest do, you come home from school you do your homework. >> that was so cute. >> we'll get reaction from nintendo's president and ask him what's behind a big price cut they announced. >>> up next, apple pay roll out a cheaper iphone at its highly-anticipated event next month. a smart move or a misstep. that sound bite was so cute at the baseball game. okay, keep it right here. i've been doing a few things for a while that i really love--

transparent right now i don't think it's necessarily always in the news and that's something that the dodd frank that was signed three years ago by president obama was promising but the f.c.c. has yet to actually offer that type of information in terms of employer see play eat c.e.o. disparities. reporter for the nation thank you so much for breaking down some of those numbers for us thanks for having me meanwhile here in the nation's capital a committee has been formed to make a bid for the d.c. region to host the two thousand and twenty four summer olympic games if d.c. were to win the bid it would be the first american location to host the summer olympics since atlanta in one thousand nine hundred six the group behind the push is called d.c. twenty twenty four and they are claiming that d.c. would be the best place to host the olympics because of its reputation for heightened security of course meaning that there would be no need to worry about public safety but economically speaking would hosting the olympics actually help the districts the economy or to correspondent liz wall has more. it's

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

transparent right now i don't think it's necessarily always in the news and something that the dodd frank that was signed three years ago by president obama was promising but the f.c.c. has yet to actually offer that type of information in terms of employer see play eat c.e.o. disparities. reporter for the nation thank you so much for breaking down some of those numbers for us thanks for having me well the more we know the more we realize we don't know what the american public just learning about the u.s. drone strikes concerns about potential abuses have increased these concerns include sheer lack of transparency about the strikes and also the innocent lives lost overseas and other issues with drone strikes we'll likely amass over time for more on that the residents lori her finest. the opposition to drones is pretty vocal and large but there is also a quieter smaller opposition to drones that exist turns out air force pilots are anti drone or at least they want to be the ones to fly them according to a new report by colonel bradley hoagland the air force can't get enough volunteers for

dodd/frank. joining us to talk about it, tony frato and jerod bernstein. hi, guys. >> hi, andrew. >> before we even go there, i have a joe question for jerod. i don't know if you heard us before. >> yeah. >> yes, i did. >> fed chief, treasury secretary. >> i wasn't going there. >> chief of staff. >> you're going minimum wage? >> i am going, who you are going to be in a biden administration? >> that's where we really need to go. >> have we talked about it? have you talked with the vice president about that? >> do you want to run the fed? >> i have not. >> do you know what you'd be in a biden administration? that's on the front age of the journal. >> i might be the guy who gets him his breakfast and maybe coffee. >> treasury secretary? >> you are going to spook the markets if you keep going like that. >> aim high, though. >> run the fed. run the fed. >> you sound like my mother. >> so modest. okay. go -- andrew wants to -- and i think minimum wage. >> a serious question on minimum wage and then wha

of course, i believe that dodd frank fails on its merits. theeven that said, i think back story that is given in this book really does eliminate the campaign that we have seen to the campaignpb and to eliminate lending alternatives for borrowers. so i find us a back story to be again, if theen, approach should always be what is the argument and how do we address the argument on the merits. let me wrap up with a few minor criticisms of the book. that the dualr scholar listed nature of this book that i see is a plus, the downside is that the organization of it can be a little disruptive and your flipping pages as if you are reading a book on the beach and all there is a regression into philosophy. it is well done, but there is a sort of oh, i want to get back to see what this person is going to do next. toin, the flow of it trying achieve both of those things at the same time, i think it could have been done differently. but again, i will commend him with being the only book that has tried to achieve both of those things in one book. i like to

interference and artificially creates administrative rules that are court and i use the [inaudible] dodd-frank is another one. it poses the regulation on wall street and bank. we would be very much opposed to this. we would rather see maximum freedom in the financial market you go after the fraud pet leer. we believe in those but the problem with the f they often fail to catch the theive after that aare exposed. we are knee madoff is an camp of that. who exposed the fcc. and it they wouldn't listen. i mean, this is typical. what did congress do? they triple or double the budget for the fcc saying you missed it here. it's because we didn't have enough money. i think it's fundamentally flawed system. it creates an artificial sense of security. that investors say this guy bernie madeoff must be legitimate. it must be a deal i'm going put money with them. if we didn't have the fcc, then everyone would be much more skeptical, they would really check and investigate. it's kind of like banks when you have $100,000 insurance on cd, do you really check to the soundnd of the bank? what are you caring yo

the context was i think it was d doding -- dodd/frank, or it might have been in health care, there are these tiny little loopholes. they go on for thousands of pages. and if you can be a lobbyist or a lawyer at a firm who can understand this much and you're getting paid, you know, tens of millions of dollars, but you're probably saving your clients, you know, hundreds of millions of dollars, sometimes more. so it's very cost effective. i mean, the complete arcaneness of this world is again, very, very good for business. >> let's quickly run through some of the roll call of influence peddlers that you write about. billy tauzin. >> billy tauzin was a former democrat, became a republican congressman. went on to become the head of the -- one of the top pharmaceutical lobbies in the country. >> after, in the house, overseeing the drug industry, chairing the committee that oversaw the drug industry, and he was crucial in passing the medicare prescription bill, which has meant billions in profits for the drug companies. then he resigned, as you say, ran the pharmaceuticals lobbying arm in was

he said, that was the whole point of dodd-frank. what do you say?, that's not the point. the point is that it is impossible for any bank to make loans that -- where there will be zero foreclosures, right? >> right. >> because if you did, only 50% of the population would get a mortgage. so there's going to be some defaults. but if you're going to be blamed for, let's say, default rates of 2%, 3%, then instead of approving 80% of the loans, you're only -- you can only approve 60% of the loans to get rid of the 2%. and -- >> dick, you know -- yeah? >> and the point is that none of these financial institutions that are making mortgages today made the bad mortgages of the subprime debacle. >> okay. >> we know how to do this. we've been doing it for 50 years. >> that's a good point. yeah, that's a very good point. these are not the players -- >> there were ten investment banks and ten s & ls, so why are we punishing all of the people who know how to do right? >> we talk about this a lot, dick. it's this pressure on the banks. but isn't that the reality of

only about 40% of the regulations for dodd/frank have been written so far. one major one that has not been completed is, of course, the volcker rule. you have on the president's agenda this week a series of economic speeches designed to push his middle out economic agenda and also prepare the ground for the fall fiscal fights with republicans over continuing resolution, the sequester, and also the federal debt limit. finally, of course, the president has got back on his plate the selection of that new fed chairman to succeed ben bernanke. janet yellen and larry summers are considered the two leading contenders. all of that will play out once congress comes back in september. michael farr was just saying it's nice and peaceful in washington. it's about to get unpeaceful, guys. >> you bet it is, john. let me follow up with your reporting from, i believe, it was friday where an administration source, correct me if i'm wrong on that, told you it was probably a two in three chance that larry summers was going to be the next nominee for fed chief? >> that's right.