you can look at dodd frank and say, i don't think it will work. i don't believe it is the default mechanism. they won't bail them out with some extraordinary subsidies in the future. it depends on what you choose to believe. there is not a dispute about what the law says about bailouts in the future. the law says there is not going to be public funding other than the possibility of temporary liquidity being made available. is there a misconception about the effectiveness of the orderly resolution plan? -- it misconception depends on who you are asking. the fact of the matter is, if organizationking and the creditors know they are going to get paid, they are going to act differently. that is what a major point of it is. it is temporary liquidity. the fact of the matter is, it will take government cash to come in. that will give others time to escape the losses that would otherwise, in a normal bankruptcy, where they would be , they wouldsolution take a haircut and lose and move on. you have got this concept of too big to fail from the perspective o

of course, the response to that at the time was the dodd frank legislation. you just heard from the authors of that legislation. the best policy thinkers of the time, or at least those charged with the responsibility of responding to the crisis -- that was not dispositional inclined to be generous to the industry came up with the dodd frank approach. the paint is not your drive on that framework. it is not even fully implemented, so we can certainly have a debate about what it six -- about what it six facts might be, but the matter of fact is that is not yet complete. any deliberations at this point are partially speculative in nature. i think it is premature in some cases to be making final declarations about what might or might not work or what does or doesn't work under dodd frank. regulatorssaid, the have looked at this issue many times and has essentially said, we believe we are making good progress in addressing these issues of concern area before needs to be done we will do more. do? does dodd frank it provides first of all more capital, more oversight

implications of rule makings mandated by dodd-frank.hat are you able to do to mitigate what is always described as unintended consequences? you and i have been in touch in regard to realtime reporting rule which may unintentionally identify swap participants in transactions. you indicated this is something you are looking into. would you bring me up to date and maybe can put on the record the nature of the of conversation we had yesterday and where you are headed. >> thank you, senator. we did pass a rule making that puts in place a ruletime reporting obligation of swaps activity. and depending on the entity or the counterparty in the trade, there is a timeline by which the party has to report their trade to the public. and the matter you and i discussed, as you know, relates to certain instruments that are not terribly liquid, meaning there is not a lot of trading activity in some of these products. and because of that fact, it becomes easier to identify the identity of one of the counterparties. and so this is a problem and a challeng

implications of rule makings mandated by dodd-frank. what are you able to do to mitigate what is always described as unintended consequences? you and i have been in touch in regard to realtime reporting rule which may unintentionally identify swap participants in transactions. you indicated this is something you are looking into. would you bring me up to date and maybe can put on the record the nature of the of conversation we had yesterday and where you are headed. >> thank you, senator. we did pass a rule making that puts in place a ruletime reporting obligation of swaps activity. and depending on the entity or the counterparty in the trade, there is a timeline by which the party has to report their trade to the public. and the matter you and i discussed, as you know, relates to certain instruments that are not terribly liquid, meaning there is not a lot of trading activity in some of these products. and because of that fact, it becomes easier to identify the identity of one of the counterparties. and so this is a problem and a challe

to enforce regulations under the dodd-frank financial law. the sec is requesting $1.7 billion for nick steers budget and the cftc is asking for $280 million. this is an hour and a half. >> good afternoon. the subcommittee will come to order. i am pleased to convene this hearing of the financial services general government subcommittee to consider the fiscal year 2015 funding request of two key federal regulatory agencies, the securities and exchange commission and the commodity futures trading commission. i welcome my distinguished ranking member senator mike johanns and some of our other colleagues that will join us here throughout the day. joining us today are also the honorable mary jo white chairman of the securities and exchange commission and the honorable mark wetjen acting chairman of the commodities future trading commission. they will discuss the critical work of their agencies can't, their use of resources provided over the past couple of years and their budget needs for fiscal year 2015. the work load for these agencies has grown

so today we have dodd-frank on dodd-frank which is a real treat i think for me in particular, having worked so closely with both senator dodd and congressman frank in enacting this legislation which is truly historic. chris dodd is a former senator from the neighboring state of connecticut and he was the chairman of the senate committee on banking, housing and urban affairs, all through the crisis. the year leading up to the crisis and then through the passage of dodd-frank. and barney frank is the former congressman from this great state of massachusetts and the chairman -- former chairman of the house financial services committee so you know them well for dodd-frank. but also as chairman of the banking committees and house financial services committee. they were responsible for tarp, for the credit card act, which overhauled the credit card industry, the regulation of the credit card industry. they also worked on and passed the housing and economic recovery act which created the federal housing finance agency, actually provided the authority to put fannie and freddie into conservato

dodd-frank dramatically expanded the sec's responsibilities. the sec was thrust into the driver's seat for issuing nearly 100 new rules, creating five new offices, issuing more than 20 studies and reports, overseeing the over the the the -- over the counter advisers and security-based swap market participants and setting up a new whistleblower program. the jump-start our business start-ups act of 2012 added more to sec's plate for further rules and studies on capital formation, disclosure and registration requirements. turning to the cftc now, the cftc carries out market surveillance, come license and enforcement programs -- compliance programs in the futures and swaps arena. it detects, deters and punishes abusive trading activity and manipulation of commodity prices helping to prevent negative impacts both on consumers and is on the economy. four years ago the cftc's mission was substantially expanded to include new oversight of the swaps marketplace, the vast, once in the shadows world of over-the-counter derivatives. it is a significantly t

today, we have dodd-frank on dodd-frank. it is a real treat. having worked so closely with both of them and enacting this legislation which is truly historic. senator from a connecticut and he was the chairman of the senate committee on housing and a ring affairs -- urban affairs all through the years of the crisis and through the passage of dodd-frank. barney frank is a former congressman from massachusetts and the former chairman of the house financial services committee. fromnow them well dodd-frank but also as the chairman of the banking committees in the house financial services committee. they were responsible for the tarp. for the credit card act which open-heart -- overhauled the credit card industry. passedso worked on and the housing and economic recovery act which created the federal housing financing agency. forrovided the authority government backstop but beyond that, they are rate legislators. on forsman frank worked housing, equal treatment and antidiscrimination issues. was the author of the family act and work on a number of ch

. >> dodd frank gave you new tools that will rias -- dodd frank took away some your firefighting abilities some of your bailout abilities. does that worry you? >> you can't -- i mix metaphors a lot and try to find this right one. you don't make fires less likely by depriving the fire stations of equipment. it is not just the way crises work. >> you are saying the dodd frank legislation did that to the administration? >> they gave us authority to have more capital against loss. as a systematic part of what we do going forward into provision, it is designed to make sure the system is running with the capacity to absorb a great depression like losses. that is a very important thing. not like in 2007 when it applied to 30% of the financial system. dodd frank gave us the ability to wind down a large competition institution without a taxpayer funding it and the risk of damage. we didn't have that authority. it is a very important thing. dodd frank, we were legislating in a deeply populist moment, it took away the authority to guarantee the liabilities of bank holders without congressional approv

that is why in 2010, during dodd frank, i teamed up with one of my favorite people i serve in the senate with -- served in the senate with -- the amendment on the floor got 33 votes. my math tells me that is well less than 51. 33 votes, which was a start. since then, times have changed. the federal reserve's top regulator endorsed this approach, so has george will. everything i agree with george will about his baseball. peggy noonan has endorsed it, tom huntsman, even the former chair of citibank's andy wyle supports this. second, i teamed up with a member of the senate was about as conservative as they come, david fitter from louisiana, to and too big to fail once and for all. -- two end too big to fail once and for all. even as the economist on this stage no, during the depression, banks had more capital, that is what helped so many of them survive. if you're back with $500 billion in assets, there are six of those in the united states. if you -- if your bank has five or 10% losses, you are not underwater, you don't need a bailout, you have that 15% reserves. it prevents excessive leve

so it does have the effect of favoring one group over another. >> so i think the intent of dodd-frank is to make sure that shareholders and creditors are at risk. >> some creditors. shareholders and some creditors are at risk. >> inso many conveniencey or a wind-down is the last result. we heard this morning that the banks still need more capital. they are still too over-leveraged. then we heard, no matter how many assets you put in these banks, it will never become not risky. i wonder if they are trying to meet benchmarks and finding it is crippling their businesses as they are funneling cash from certain business lines to the ed, just to have it sit there. i'm wondering if you could comment on how you view the effectiveness of the current capital regulations and how it really affects the balance sheet. >> sure. and in this discussion, of course, there are people that distinguish between capital levels and of course whether they should be risk-weighted or not. i think tom has a view on that and has spoken about it many times. we think if you look at the requirements for increased api

can you give me an awareness of what happened, and dodd-frank? >> i'll give you the list. first of all, we allowed -- people don't remember this, but we allowed a lot of failure to happen. in some ways, we let the market crush the weakest, the worst parts of the system. a lot of that has been washed away by the crisis or the actions we took in the crisis. second, we forced institutions to raise massive amounts of capital so they could withstand a much greater storm in the future. so what the stress test did was say you have to go out and get capital or we're going to put it in you so you can survive the great depression, not an average recession, but the great depression. it's now the law of the land and the law globally for financial institutions. we also supplied the constraints on risk taking much more broadly across the system. i told you the banks were 40% great, the safeguards were applied more broadly across the system and we have much better tools to manage messy failures, to -- jamie dimon called it bankruptcy for large sum banks. you want to design the system not

. >> clearly dodd-frank debut new tools, reassures you about the future but dodd-frank also took away of your firefighting abilities, some of her bailout abilities does that worry you? >> it does. you can't -- i'm going to mix metaphors because it's hard to find the right one. you don't make fires less likely by depriving the fire station of equipment. it's just not the way crises work. not the way finance works. >> using the dodd-frank legislation did that to the administration? >> they did some very important powerful things, that gives authority to have more capital against loss. as a systematic part of what we do going forward in supervision, again it's designed to make sure the system is running with the capacity to absorb a great depression like losses. that there are important things. not like in 2007 when they were applied to 30% of the financial system. they were applied much more broadly today. dodd-frank also gave us the ability to wind down a large lae institution without affected by it and without the risk of a lot of collateral damage. we didn't have that authority with

in dodd frank the idea was to eliminate that, that notion that some institutions were too big to fail. , in his book, put a bit of reality on that and said you can never really actually thatnate the possibility you might have to bail out a large institution. he just do the best you can to prevent that from happening. it is one of those contentious , youg with -- arguments bail out these bags can believe creates this moral hazard, and they feel like they can never go under. geisler has certainly -- with the book of and with his statements, has fed into that because he has supported the notion that you should not allow these huge institution to fail what you just want to set up a situation where you do not have to make that choice down the road. let me ask you about his own personal tax issue. he addresses it in his book, saying they were all honest mistakes, most noticeably when he worked at the imf. what happened? guest: there were some things report, and the if,on't know- he wast know if accused of deliberately try to taxes, but if the treasury secretary the artist is cannot do his t

i think we all had that challenge when we were putting together dodd-frank. i had that challenge on judiciary when i was put -- when i was working on intellectual property reform. these are very difficult issues. unless you do them every day you know i couldn't walk in and do your job. you know a lot more about cameras and camera angles and how you deal with things in the press. you don't really understand the depths of complexity until you get on the inside, which is why i never argued with the senate banking committee when they said you don't know everything about the center. you're absolutely right. i need to surround myself with people who know it. and i have done that. i think we're going to be successful running this agency. >> thank you for being here this week. when you're ready for your second television interview, come back. >> thank you. >> "newsmakers" is back with clea and nick after a conversation with mel watt, the new director of the federal housing finance agency after 20 years on capitol hill. let's start with the legislation. in your questi

frank gave you new tools, reassures you about dodd frank also took away some of your bailout ability. does that worry you? >> it does. , you know, you don't make fires less likely by fire station of equipment. it's just not the way crises work. >> and you're saying that the dodd frank legislation did that administration? >> the reforms did some thertant things, give us authority -- as a part ofsting what we do going forward in supervision again is designed to is runninghe system with the capacity to absorb losses.pression-like that's a fundamental thing. are much constraint more broadly, they are applied much more broadly today. dodd frank also gave us the largey to wind down a institution without the taxpayer funding it and without the risk damage. of federal we didn't -- that's a very important thing. but dodd frank, we were lent a --ng in in a deeply unless you can reduce the incentive for people to run, exits to rush for the protect themselves and that's what brings the risk of massive unemployment. everybody i know likes to discuss dodd frank, i want to talk about the point tore

however under the dodd frank act, trading commission regulation we can not have discussions of any sort regarding hedging without having policies in place that allow us to sign a safe harbor letter for gold man sachs this was drafted with the assistance of council and we do have a representation written representation from our financial advisor it's not like the city's policy which is 24 pages long and goes into types of bonds and notes and that sort of thing so it's much more general in nature but includes what we need it to include to have the discussions that we have i'm happy to answer any questions you have we also have bond council as well. >> any questions or comments? seeing none. >> do we have a motion on this item. >> so moved. >> we have a motion, second. >> roll call on this item. >> director beall, metcalf aye director reiskin aye that's 5 ayes and item 10 is approved. >> number 11 other related services with ross and baruzzini. >> good afternoon i want to talk about the ross and baruzzini work on the concept of operations give you a little bit of background september 27th,

the bank is getting more focused as a result of dodd frank legislation.k that regulations are actually driving banks need people the most, out of the banks? clock people are leaving banks but i'm not sure it has to do with the regulation. in fact it is the other way around. that area love people in banks or other financial institutions that are hiring people for compliance. some of them are pretty complex. even though my former agent has done about 80% of the dodd frank rules, the rest of the other -- theyl regulators have only done about 55% total. if you are wondering what is going on, there is still more of a story to be told, how do you work all this out to? what is going to happen internationally? how did international global businesses work to make sure that they are complying but also looking around the corner so they can be nimble and quick and have a competitive advantage? >> you ran the cftc. what is wrong with barclays being in commodities? >> there's nothing wrong with them trading it. my issue has been if they owned the commodities and they t

and we think that we're just going to use those dodd-frank figures. they also take executive bonuses and stock options and factor those in. >> the problem though is the disnew england side. and california -- disincentive side. the vice president for policy gina rodriguez, says california is already the anti-business state, isn't there a danger that adding those disincentives that california will be contrary to big corporations? >> not at all. california is one of the nation's biggest markets. companies want to be here, and we have a very high quality of life in california. this is really an incentive program. it's voluntary. right now, the corporate tax rate is are 8.8%. our bill would say, if you voluntarily have a ceo pay ratio that is reasonable, 100 times more than the average worker, you can lower your tax rate to 8%. if -- and we have some corporations in california that actually have a 25-to-1 tax differential. their tax rates can go down to 7%. >> but california's unemployment rate is 7.8%. that's a point and a half above the national average.

you talked about the title 2 in dodd-frank. as i understand it, that is the bail-in mechanism for the u.s. is that correct? >> it is a form of it. the way it is being talked about is you would be required to issue debt instruments. so you would have your equity and on top of that, you would have your debt. your operating units would be underneath that. , perhaps had a failure caused by one of those operating --ts, you would take that you would be forcing that down into a subsidiary that would be converted to equity and recapitalize magically. that is the bail-in from that group. they know that when they buy that debt, its purpose is so that they can be priced accordingly and with knowledge. the problem of that is, for those operating units, they suddenly have a significant advantage over other operating units that are not thought to be too big to fail. so it is a form of bail-in, but certainly different than what you have described for europe. >> do you think we are heading for a systemic crisis? get aare going to question from

and what could come out of dodd-frank. and the volcker rule. they ended up in a good place.s messy. but at its core, very powerful, very important. they will endure for a long time. >> did you leave anything else out? anything too interesting to tell, looking like you had assassination in your eyes or something? i had to tell the story of our decisions. at i wanted to frame them in discussion of the substance of craft, pretty neglected craft, which is how to fight financial fires more effectively. try to write a comprehensive history of every conversation. i tried to write a story about this neglected, consequential craft of how to build better firefighting capacities for financial crisis. >> when you read this and other people who write memoirs of their time in government, how often it is a story of people. >> it is. there are some remarkable people making judgments. >> and not knowing -- >> i tell the story about how there is a central banker in india who gave me a book in 2007, i think, maybe early 2008, a book by a tool go one day -- a you know.e, who he said, this is th

we're not covered by dodd-frank. melissa: if you can't beat them, steal them. jpmorgan poaching top talent from silicon valley. there is example of wall street morphing to what is really working. >> if you're a business major you get left out. you have to be a tech major. melissa: we know that. we know that. training my kids on code. >> they lost one of their best people to private equity. making my point. what is his name, mike cavanagh, former cfo, allegedly heir apparent to jamie dimon went to the carlyle group. why did he go to the carlyle group? talk to anybody. he didn't have to put up with the nonsense of bank regulation. melissa: that is fabulous landing. incredible wealth and probably much less work. >> he is a good guy. melissa: that's great. >> a lot of these guys want to go to the tech side, want to go to silicon valley because that's where the real lonnie is. melissa: righ >> if you're a business school grad right out of school this is where the opportunity is at. melissa: why isn't jpmorgan stealing them back? will they open a wallet of their own?

place back in the 1930s post the 29 crash, versus what we have seen here post the 2008 crash with dodd-frank. what's your take on that. >> the glass stiegel act passed in 1933 after fdr came to power was a very clear line between speculative things the banks could do and the deposits it took and services it provided to regular individuals and small businesses. a very, very clear distinction, one does not connect. and as i mentioned before, the key bankers of that time, two of them actually, winthrop aldridge and james perkinses, friends of fdr who came in to run national citibank after charles mitchell was so a crook, was also on the same pain as fdr. one fascinating thing i found in the fdr papers was that they had meetings, dave perkins was at the white house three day after the inauguration, talking to fdr about how he would split up his bank first. he would tell this shareholders, this us how it's going to go to. and he did. and so did aldridge, before the glass stiegel act was actually signed in the summer of 1933. so, that's what happened. there was a fine line between betting and trad

the dodd frank came along and did nothing remotely by dissecting the speculation from the depositorsinto the traditional banking activities. the deposits and loans, nothing. it's really, really long. it has lots of pages. and it is absolutely nothing significant. so, it is a huge difference. >> host: do we have the political will? to have the estimation to take on the battle? >> guest: president obama basically says it was a sweeping reform. so if you can look at something that wasn't sweeping reform and compare it to something that was a sweeping reform and say that with a straight face and have the treasury secretary say that with a straight face, then no we don't have the leadership that either would do anything or hasn't done anything to stabilize the situation can get is pretendinit is pretending ths purchased more dangerous than not doing anything. and i don't see anyone coming into play right now with the potential that we have that are being debated in terms of who might run for the president in 2016. so we do not have a leadership that is asking something of those relationsh

wherever you come out on dodd frank, the passion they bring to the debate is phenomenal. i hope you caught the senator dodd biblical reference. that was a subliminal message for you to go see noah this >> coming up on c-span, president obama announces the drawdown of troops in afghanistan. followed by the future of afghanistan. and the supreme court oral moss.nt in wood vs. washingtonext journal, a look at the role on the changes plane in the 2014 elections. coalitionducation discusses the obama administration's plan to train more teachers. later, the spotlight on magazines features a recent article on why gm keeps swerving from apology to aggression in the recall practice. -- washingtonwl journal is live every day at 7:00 a.m. eastern. presidentay morning, obama delivers the commencement address. he is expected to talk about the plan to reduce the number of troops in afghanistan. live coverage at 10:00 a.m. eastern. and you can join the conversation on facebook and twitter. >> you can now take c-span with you wherever you go. app for your radio smartphone or tablet. liste

there are things to do and they are not that complicated. >> the dodd frank act is the bullshit.it's true. you can drive through anything despite every complaint that's coming from the banking system and the millions of the lobbyists and lawyers and people that are expounding upon it. >> i read that and it is literally like six pages of exceptions. it's ridiculous. and of the living well. after world war ii and after the period before that when he went off the gold standard something the bankers wanted at the time because of the reform that divided the regulation from the deposits whenever it is easier to have money to speculate with either you don't have to connect a golto gold or have accountabiy to what you do with it the easier it is to speculate and that he will make money quickly and then if it falls apart and you come back and, so what. that actually went through the next ten period because he went up and talked about how it was his idea that in fact it was rockefeller's idea of running the national city bank because they pushed for this idea that america needed to expand

and dodd frank came along and did nothing remotely like dissecting the speculation from the depositors into the traditional banking activities. the deposits and loans. nothing. it has lots of pages and it does absolutely nothing significant. it is a huge difference. >> host: do we have the political will? do we have the leadership in your estimation in washington to take on that battle? >> guest: no. president obama basically said it was sweeping reform. so if you can look at something that isn't sweeping reform and compare to something fdr did that was and say that us with a straight face and have your treasury secretary say that with a straight face, then no. we don't have the leadership that either would do anything, hasn't done anything to stabilize the situation coming yet it is pretending that it has which is more dangerous than not doing anything. and i don't see anyone really coming into play right now in terms of the potential that we have for what is being debated and who might run for president in 2016 that would change that at all. so, we don't have a leadership that is ask

the"new normal" regulatory framework post crisis comes from passage in 2010 of the dodd- frank wall streetd consumer protection act and the jury is still out on its success. the legislation bears the name of former congressman barney frank, but he's not optimistic that any positive changes to banking regulation will come from congress. and theres nothing new or normal for his reason why. "the atmosphere in washington is so toxic right now that nothing can be improved because nobody trusts each other." frank added that his biggest regret fropm the bill that bears his name is the failure to 'Ñunify the commodities futures /Ñ/Ñtrading commission with the 'Ñsecurities exchange commissio. he believes there's no good /Ñ/Ñreason why the two regulatos /Ñ/Ñaren't working together as Ñ institution. oÑ'Ñ/Ñ freddie mac and fannie mae are on firmer footing since the financial crisis... combined fannie and freddie generated a blockbuster fs first quarter of $9.3 billion in net income. the mortgage related firms will pay back $10 billion to the u.s. treasury in june. bringing the total to $213 billion to

secretary he publicly said prior to dod frank being passed too big to fail would be eradicated by dodd-frank. in this class he said something very different. his view is that you will never really be able to take the fire department away and he would even argue it's misguided to take that fire department away because there will be another crisis in the future. >> andrew, terrific job. thank you so much for joining us tonight. andrew ross sorkin. >>> a new study says medicare spent $2 billion on patients back in 2009 for tests and medical procedures that had little or no health benefits. in the first large scale study to directly measure wasteful spending in medicare harvard researchers at the medical school there found at least one in four medicare recipients received one or more unnecessary or ineffective tests or procedures that year. the study results were published in today's journal of the american medical association. >> here's something you don't often series, federal budget surplus. washington ran a $107 billion surplus in april thanks to all of those individual and corporate tax rec

he's flip flopped on issues that are key to republican voters, common core, bailout, repealing dodd frank and now we found out just earlier this week that he seemed to be a little bit soft when it comes to not raising taxes. >> i use the word revenue and revenue is a code word for tax increase in politics. the point i've been making for over a year is we have to get the economy going that will increase the tax days and solve the debt crisis. >> voter turnout is expected to be below 20%. the winner will likely take on michelle nun in november. >>> then there's miss sip sippy. a local political blogger has been charged with a felony for photographing and posting a photo online of cochran's wife who is in a nursing home. the blogger is a mcdaniel supporter. mcdaniel has condemned the blogger's actions and personally called cochran. >>> a report from over the weekend suggesting that the veterans affairs scandal may be more widespread than thought. the v.a. settled 167 claims since 2001 that were apparently linked to delays in treatment. that financial payout stole more than $36 million. all o

most recently, the federal reserve finalized a rule implementing section 165 of the dodd-frank act toestablish enhanced prudential standards for large banking firms in the form of risk-based and leverage capital, liquidity and risk management requirements. in addition, the rule requires large foreign banking organizations to form a u.s. intermediate holding company, and it imposes enhanced prudential requirements for these intermediate holding companies. looking forward, the federal reserve is considering whether additional measures are needed to further reduce the risks associated with large, interconnected financial institutions. while we have seen substantial improvements in the labor market conditions and the overall economy since the financial crisis and severe recession, we recognize that more must be accomplished. many americans who want a job are still unemployed, inflation continues to run below the fomc's longer run objective, and work remains to further strengthen our financial system. i will continue to work closely with my colleagues and others to carry out the important

rules required under dodd frank have been written. have been promulgated, diluted the law's intent. has made it easy for banks to lobby against tougher settlements. >>. frank was a mismatch of everything thrown together. something that were good and are bad. deserves to be watered down. they failed on the regulatory mismatch. have put together a lot of the agencies and they did not. instead they created more. bank -- one of the small banks have four regulators in it at the same time. just think about that. one is more than enough. >> acquisition of thanks as well. >> meetings every day with the regulators. you can watch timothy geithner, the full interview with charlie rose on bloomberg television tonight at 8:00 and 10:00 eastern time. twitter question of the day, five years after the great recession, what is your new normal? new neutral? how do you define it? us.t us == -- tweet ♪ >> good morning, everyone. bloomberg "surveillance." nowhere else where you can get a standard shots of the boom boom room. the meatpacking district. scar

frank are saying the dodd legislation did that to the administration?tothey gave us authority have more capital against loss. as a systematic part of what we do going forward into provision, it is designed to make sure the system is running with the capacity to absorb a great depression like losses. that is a very important thing. when it applied to 30% of the financial system. abilitynk gave us the to wind down a large competition institution without a taxpayer funding it and the risk of damage. we didn't have that authority. it is a very important thing. dodd frank, we were legislating in a deeply populist moment, it took away the authority to guarantee the liabilities of bank holders without congressional approval. verywas an unfortunate, consequential judgment. in theill be some time future, hopefully generations from now, when they will need that authority again because in a financial panic, that is a necessary part of the arsenal. reduce thecan incentive of the run, they will rush for the exits to protect themselves and that is what brings the ris

geithner says a problem with dodd-frank is that it still doesn't allow enough bailout authorities aswer as he would like the government to have. so now they're proceed to go name other banks as systsi syst cannily important. >> and they're also still banking on the pressurience of regulators to prepare us and prevent the next crisis when of course geithner being a knoll a couldn't predict the last one. >> that's the idea of the consumer protection bureau. but also he talks about how ending too big to fail is an impossibility. government's job is to stand by and always put up a fire using taxpayer money and all the discretion it can muster. and that seems like a very dangerous lesson considering the fact that, you know, if you look from 1971 to today, you have more and more financial crises, they're deeper and deeper and they come more frequently. >> all right. when we come back, new jersey governor chris christie raising fresh speculation about a presidential run. but with the garden state's budget in shambles, could bridgegate be the least of his problems in 2016. way to get your fi

individuals throughout and relative to the bailouts and subsidies that have been given since and dodd-frank came along and did nothing remotely like dissecting speculation from depositors and traditional banking activities. >> a look another the relationships between 1600 pennsylvania avenue and wall street tonight at 9:00 on "afterwards." part of book tv this weekend on c-span 2. and our book is "it calls you back." join other readers to discuss the book at booktv.org. >> florida senator marco rubio was in new hampshire this weekend, a state that traditionally holds the first presidential primary. the republican lawmaker spoke at a fundraising dinner hosted by the rocken -- rockingham county republican committee. it's 50 minutes. [applause] >> thank you very much. i know you had to stand up to get these circulation going. but sit down now and relax. if you look at your programs, the next thing on the program is the introduction of our keynote speaker, but for those of you who don't know, i am not kelly yotte. i actually feel like a utility infielder. every time there is a problem, i get a

geithner says that a problem with dodd-frank is it still does not allow enough bailout authority as muchs firepower as he would like the government to have. now they are proceeding to name other banks systemically important. this idea continues. >> they are also still banking on the -- regulators, prepare us and prevent the next crisis when, of course, geithner acknowledges that he couldn't predict the last one. >> right. that's the idea of the consumer financial protection bureau. but -- you know, also, he -- talks about how ending too big to fail is a possibility in his mind. government's job is to just stand by and always put out the fire. taxpayer money and a discretion it can muster. and seems to me like a very dangerous lesson considering the fact that, you know, if you look from 1971 to today, you have more and more financial crises. they are deeper and deeper and come more frequently. >> when we come back, new jersey governor chris christie raising fresh speculation about a presidential run. with the garden state's budge net shambles could bridgegate be the least of his problems

congress passed obamacare, dodd-frank, these are blatantly unconstitutional laws that confer power on the administrative state and do other things that are outrageous. so the notion that three-fifths of the state legislatures should be able to amend the constitution should hardly be radical when the supreme court is, in essence, a constitutional convention every time it meets, same with congress, same with the president and his cabinet. in order for that to happen, we'd have to amend the constitution in the first place to allow the states to do that, which is one of the things i propose in my book. >> host: in your fist book, "men in black," you write: the supreme court in particular now sits in final judgment of essentially all policy issues, disregarding the constitutional limitations, the legitimate roles of congress and the president and the broad authority conferred upon the states and the people. >> guest: yeah. the progressives have won. and i don't know why they're complaining or challenging what i'm writing, you know? since before woodrow wilson and franklin roosevelt and so