my summary of the dodd-frank act, the dodd-frank act did encourage policies to make banks have more capital, really what it did is put regulations on the financial system so the authors of the dodd-frank act had thing to trade-off between mandating more capital and mandating more regulation and they chose to mandate more regulation but scott's book changed my view on that and as he points out if you have a capital problem or even if you don't have a capital problem you can have a panic which people are going to tell you if you do have a capital problem it keeps getting worse. before the financial institutions collapse or declare bankruptcy from lack of capital people are going to try to pull their money out and when that happens you are going to have a panic and the panic is not only going to hit the bank that was truly undercapitalized and on the verge of insolvency but all the other things in the system regardless whether they are well it will be indiscriminate and create a crisis and require immediate response and the immediate response that is necessary to fight this contagion or this p

is dodd-frank dead? do not take a hike. happy forelect is janet yellen to stay in the current role she has been occupying. will she get react, that is the big question. we will take a look at the functions and come back to the conversation surrounding dodd-frank. to untiedges restraints on u.s. banks that were put in place after the global financial crisis in 2008. are we heading back to some sort of glass-steagall? trump butratulates are they headed for a collision? all that still to come. this is bloomberg. ♪ guy: welcome back. you are watching the european open. we have 16 minutes to the market open. futures are positive pointing to a positive start in london trade. let's get caught up. te: siemens has predicted higher than estimated profit. revenue advanced most of it in the industrial business units. the announced plans to spin off its health care division. zurich insurance groups third-quarter profit has more than quadrupled, net income was $112 billion. a decline in major test of his help to reverse a loss in its gen

if we open up dodd frank, we are not going to dodd-frank saying of folks. it is 2017, a new day, nothing has ever happened before. we're going to open it up with the memory of what happened in 2008 and how a handful of people took down this economy. it is 2017, a new day, nothing then, the part we are going to remember is what happened in the next eight years as they got bailed out by the american taxpayers, got richer than ever, and left american families behind. that will be the context for reopening dodd frank. gerald: one of the things that did happen in the aftermath of that was the creation of the consumer financial protection bureau. does it survive? is it going to die in the next six months? sen. warren: who you think you are fighting for out there? let's be clear about the consumer financial protection bureau. it has forced the largest financial institutions in this country to return $11 billion directly to people they have cheated. it has now handled more than a million complaints. it is out there doing its job. it is leveling the playing field. i

congressman hannah: we talked about dodd-frank. prior to dodd-frank, the federal reserve examined responsibility for the safety and soundness of money and consumer protection oversight. dodd-frank move that over to c fpd, yet, in 2015, the l.a. times reported that wells fargo would cross selling pressures on consumer bankers and was encouraged and encouraging fraud. wells fargo paid $185 billion in fines, and i noticed this is a hypothetical, but i am curious, so dodd-frank in this instance miss this, and it is a profound it would have made any difference if it was left with the federal reserve? cooperatedn: we have historically with the regulatory agencies to engage in in this case,and the consumer financial protection bureau was involved. the controller, currency, most of the abuses that occurred when the national bank, where the comptroller of the currency also had some responsibilities that so been historically true, you know they did find these problems. they have significant fines to put in place enforcementect the. at the of

so we're going to look at what to do with it as we are with all of dodd/frank. the number one priority is going to be make sure that banks lend. >> steven, this is one of the first opportunities people are going get to know you publicly. you have not been as much of a public face as wilbur has historically. i talked to hank paulsen who you work frd last night on the phone. he said he is very talented, has a deep understanding of finance and markets, he knows how to bring people together to get things done. importantly he has a working relationship with and the confidence of the president-elect. this was a big gamble for you. a lot of your colleagues and peers raised questions about doing it. did you think of this as a true idea of getting into the administration early on? >> let me first say and i've heard a lot of people say this was a gamble. this was never a gamble from my perspective. i've known the president-elect for over 15 years. i believed in his policies. and i thought he would win. but i did this because i believed in it. despite the fact there were a

in connection to donald trump's plan to rip up the dodd-frank plan. other story we are watching is singles day. takings bybillion in the halfway mark. the company and listed celebrities -- enlisted celebrities to promote the blitz. anna: daybreak looks ahead to today's meeting on eu trade representatives in brussels. the transatlantic trade partnership will be in focus. yousef: emerging assets continue to tumble since donald trump's win. caroline hyde joins us. carolyn: what a selloff we are seeing. concerns that he might be dismantling some of the trade relationships and we are seeing concerns that may be the capital outflows could continue to ramp up. check out this 4% slump we have seen over the last four days and the fx market is being affected. it slumping about 2% over the course of four days. emerging market continuing to be rattled. we have also seen the selloff of u.s. treasuries. 1.875, we are seeing half a percentage point rise in yields on united states. germany has not moved nearly so significantly. a big difference between what is happen

long, on dodd frank. ms. long: the dodd frank he likes is the one that guarantees too big to fail.allows enormous risks in the biggest banks, and promises to transfer that risk to the taxpayers. that is what he likes, and that is what his big donors like. what i propose, and what i think is a much better bill, is the brown bitter bill which is pending in the senate. for those really really big institutions, $500 billion in assets or more, they need to increase their capital equity requirements so they can cover themselves. that prevents them -- they don't like that, because they would rather have more leverage -- and what the practical effect of that might be is to force them to downsize, which i think would be a good thing. it would be their decision. they can be responsible for themselves and not be on the hook for the taxpayers, or they can comply with increasing their capital requirements. sen. schumer: i am for capital requirements for all bank, not those that choose to have it. ms. long: you have punished the smaller and community banks, like first niagara. a wonderful, 150-y

thank you. >> congressman hanna. >> we talked about dodd-frank. prior to dodd-frank federal reserve examiners took responsibility for safety and soundness of money and consumer protection oversight. dodd-frank moved that to the cfp d and yet the 2015 la times reported wells fargo, cross-selling pressure, consumer bankers, encouraging fraud. wells fargo, $85 billion in fines, this is hypothetical but dodd-frank in this instance, whoever is doing this, missed this, a profound miss. do you think it would be any different had it been left to the federal reserve? >> we have cooperated historically with other regulatory agencies to engage in examinations. in this case, consumer financial protection bureau was involved, controlling the currency, most of the abuses that occurred were in the national banks where the controllers of the currency had responsibilities, has been historically true, so they did find these problems, lifted significant fines, put in place enforcement actions to correct them. we, in 2011, looked at a subsidiary we were then responsi

with less than a quarter of 1,000,000,000,000 dollars in assets. >> there's a lot of talk about dodd frank and made campaign there's now some presumption that the republican majority will go after in some fashion. what are your concerns about the possibility of something that resembles the mishandling of that frank and what are anticipation of that and your concerns. >> just like with fiscal policy don't want to speculate as to what may happen. if changes are made we will implement faithfully whatever changes the congress makes. i want to return to the theme i struck a moment ago. that is to remember why we started down this road in the first place. as you said right after we got to the fed in early 2009 when he started the the first stress testing process, it was because of a financial crisis which followed an extended period of unsustainable lending and other business practices. in which it is elicited a widespread, bipartisan call to do something precisely because neither party wanted a regime in which the government would be called again to inject capital into large financial instituti

trump on the trail talked about dodd frank. do you think dodd frank should be repealed? >> i think dodd frank has been a disaster. you know, it all started going after the big guys who caused the problem, and as it turned out, says it hit everybody in the financial services industry except the ten big guys who caused the problem. it's the craziest thing i've ever seen. so i don't know whether all of it goes, but there are going to be significant changes, and i believe a lot of that will have bipartisan support on the hill. >> what do you make of his comments already talking about president-elect trump that he is open to keeping parts of obama care? >> well, everybody is open to keeping parts of obama care. >> that didn't sound like candidate trump. >> the health industry basically have decided that covering people with preexisting conditions is what's appropriate in this era. the health insurance industry also pretty much have decided that covering kids staying at home until age 26 is an industry standard. those are things that have broad bipartisan support. listen, we t

so as we look at dodd/frank, the number one problem with dodd/frank is it's way too complicated.nd it cuts back lending. so we want to strip back parts of dodd/frank that prevent banks from lending. and that will be the number one priority on the regulatory side. >> wilbur's written entire white papers about this. >> right. >> as it relates to infrastructure at least. >> well, look, dodd/frank is not one for one, meaning if you got rid of it, you would not get a lot more lending. what dodd/frank has stood for is tighter enforcement, higher fico scores in order to be able to get loans. >> right. >> make it -- dodd/frank stands for make it tough to get loans. because we were too easy. so if you can make it easier, whether it means we're not going to have as many examiners -- maybe lend it. but it's a change in tone. the banks were scared. >> let's not forget bigger picture here, these are two gentlemen, ied logs -- of course our viewers know wilbur ross well, or at least should, he's been on our air so many times through the years. mr. mnuchin not so much. but that's what they are.

during these potential changes to dodd frank, we are also dealing with brexit. how are you coordinating with the brits on regulatory environment and monetary policy that could impact us? >> obviously come in a purely financial stability sense, we are in a close consultation with our colleagues and other central banks, but as most of us expected, brexit did not turn out to be an event. most of us did not inc. it was a high risk and it turns out not to be. the broader question on regulation is a significant one. the discussions going on right now to complete the basel three negotiations, which are the ones that put into place the higher quantity and quality of capital, it's not going to be particularly significant given what is on the table now. in capital change requirements for u.s. banks would be negligible. for the biggest banks, they have capital that would recover the new requirements and encourage them to move in that direction. would favor applying any of this to the smaller banks. the conclusion is really about whether we need to have globally some minimu

[laughter] >> to talk about dodd/frank with the safety and soundness of oversight dodd/frank moves thatver to the cfpb but yet in 2015 reporting wells fargo pressed on consumers bankers and was encouraged wells fargo paid $185 million in fines and notices a hypothetical, but dodd frank in this instance missed this and is this profound. diaz think it would have been any different if left to the federal reserve? >> we have cooperated historic plea with other regulatory agencies to engage in the examinations. and in this case the cfpb was involved as comptroller of the currency most of those abuses were in the national bank where the controller of the currency also responsibilities. that has been historically true. so they did find the problems with significant finds to be put into place and in 2011, looking at the subsidiary that be were responsible for which was the independent mortgage company that we find wells fargo to put them place the enforcement actions in together we worked pretty constructively and i would say that we supervise our state member banks and looking to see if there

eliminate parts of dodd/frank that reduce lending. from a point of view here, not scrap dodd/frank but go in and try to do things that reduce lending. he called the volcker rule too complicated. going on a few screen out of this. can sustain 3% to 4% economic growth. he believes interest rates will stay low for the next couple of years. >> that's not consensus now. >> he said they're higher now. but depends what he means by low. >> that affects what happens to the dollar. >> all kinds of stuff. absolutely. >> that'd be totally different if we are in a low rate environment. >> and then this other comment, yellen has done a good job at the fed. >> just being nice. >> that's what you think. >> yeah. >> you saw that in the body language, the facial muscles, everything. >> he rolled it up with saying there are two open spots. >> yeah. they're goirng to fill them. and will increase the average maturity of the debt that has been going up slowly. the treasury likes to not play too many games with this. but the fact that interest rates have be

frank act -- with the dodd frank act.ks like laying sayingand slowing down, dodd-frank will be dismantled. a look at how financials are faring. we have julie hyman at the markets desk. julie: we are looking at the major averages and lease will see similar patterns where we were earlier. if you want to look at the breakdown, you can look at the various groups, financials included, but i'm not sure we have that at the moment -- banks have been holding steady with more all day long because having to do with the yield curve widening. it was expected a trump administration would attempt to do some sort of dismantling of dodd-frank. that's not a surprise and banks have been reacting more to the yield curve and what thatdoes to their perceived profitability. averages holding steady in the wake of these headlines. again, financials had been climbing today and we will see if that holds on the news that one of the first things the trump administration will do is dismantle dodd-frank. the open question is there has been a similar so

we expect the dodd-frank law to be changed.han: what do you think is going to happen with the local rule? >> proprietary trading was not the main cause of the crisis in 2007 and 2008. it was controversial when they announced they were going to implement this rule. there is a chance that that would be repealed as well. jonathan: everyone is getting excited about what this means for the big players. when you look at what his transition team is saying, the big banks got bigger. the community financial institutions have disappeared. he is talking about smaller players. campaign, he was very rough about the big banks. let's make the distinction between are these rollbacks to help community banks or the big guys? >> i think he is going to help people industry. when you look at his transition team reporting this morning that they are looking to dismantle dodd-frank. what they really want to drive is the economic growth of this country to the levels that they are aspiring to, they're going to need to ease the rules on the big banks and

charles: it is clear major issues with respect to obamacare and dodd-frank.hey are such behemoths. fetting them out of the way might be a waste of time. surgeally finding what is good and not is the right mix. >>> trump wants to create jobs in america. what is the formula? how will they do that? we will break it down for you when we come back. ♪ i'vepent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. hey, drop a beat.flix? ♪ show me orange is the new black ♪ ♪ wait, no, bloodline ♪ how about bojack, luke cage ♪ oh, dj tanner maybe show me lilyhammer ♪ ♪ stranger things, marseille, the fall ♪ ♪ in the same place as my basketball? ♪ ♪ narcos, fearless, c

let's start dodd/frank, wall street reforms that emerged from the financial crisis. what can we expect there? >> what we're looking at is not an entire rollback of dodd/frank but more rifle shots, individual provision that they would like to see rolled back, both newly ascend ant republicans on capitol hill, incoming trump administration and also a lot of banking lobbyists say fiduciary rules for one thing need to be fixed. they would like to fix the way financial services oversight council designates financial institutions, the so-called too big to fail rule, they don't feel that's fair to businesses considered as designees there. there's a lot there. we're also learning donald trump may be more flexible on regulation that we thought necessarily. "the wall street journal" had an interview with him this afternoon in which he said he might keep portions of obama care, the very politically popular measures that would allow parents to keep their children on their health care for an extended period of time. also this idea you couldn't block anybody with pre-existing cond

the same is true of dodd/frank. i think there are elements of dodd/frank that donald trump and other republicans have praised while being critical of it effect on community banks and its effect on lending. so how do you keep things that might have increased the safety and diminished the risk of financial bubble and insolvency at some major institutions without -- you know, how do you preserve the good without completely eliminating the entire thing. all that is a huge challenge and we don't know who's going to be bearing that responsibility for donald trump. >> yep. if you're just joining us this morning 11:00 a.m. on the east coast. you're watching "squawk alley" on cnbc. these are live pictures of washington, d.c., as president-elect donald trump makes his way to the white house for the first time. always a remarkable optical chapter, something that truly sets our country apart, the degree to which our transfers of power are peaceful. we do not expect to see trump before this meeting. we're told he's made his way

i think dodd/frank did address a lot of that.o be amended, because they don't have the capacity to be as profitable. but i wouldn't break apart securities and banking. >> so will regulation be rolled back enough for the sequel, for tp -- what is it? >> too big to fail. >> tbtf. but will the sequel be able to be written -- >> andrew's book? >> will we make fertile ground for the sequel to be written? >> i would be shocked -- i don't think anybody -- what's interesting is the republican platform at the convention aid, let's bring back glass/steagall. now, whether or not that actually happens, i don't know. president-elect trump hasn't said so. i would -- i think that you're still going to have heavier regulation on the biggest banks, which is appropriate. the question is, i think the whole attitude has to shift from one of, let's just keep stepping on the banks to now let's worry more about growth for the economy. >> so no sequel? >> sequel! >> george bush gave me a book. now, you know what -- >> what? >> see, you're still doing it

david: still ahead, the former minneapolis fed president talks about dodd-frank. s bloomberg hid ♪ vonnie: this is bloomberg markets. david: donald trump says he wants to reinstate the old glass-steagall rules and appeal. strike. dodd-frank.l why it may not make that big of a different. gary: if dodd-frank is on the table, some aspects of it have been effective, most people would concede even chairman comments that higher capital and major financial institutions is a good idea and has made those institutions sounder and safer. you do notr hand, want to treat all financial institutions that happened to be greater -- have balance sheet more than $50 billion identically because they do not all represent the same systemic risk to the system. there is room to improve dodd-frank, one might wonder whether the consumer financial protection bureau has been a net plus or not, the jury is still out on some aspects of dodd-frank. lots of room to improve it and if you repeal it, the question is -- what do you replace it with if anything? >> the word is dilute now, what areas wo

the dodd-frank economy does not work for working people. bureaucratic red tape and washington mandates are not the answer. mr. trump and republicans in congress are ready to move including one whose name is slated for treasury secretary. >> i have had a chance to brief president-elect trump on that months ago, and that is our legislation to effectively repeal and replace dodd-frank. i hope i can help the president as chairman of the house financial services committee, if they're interested in talking about something else, i will certain answer the telephone. >> reporter: trump critics are saying not so fast. >> if trump and the republican party try to turn loose the big banks and financial institutions so they can once again gamble with our economy and bring it all crashing down, then we will fight them every step of the way. [ applause ] >> reporter: but banks and wall street may not want to pop the champagne cork just yet, as you also recall, liz, donald trump said he supported, he was critical of bill clinton's repeal of the glass-steaga

we talked about dodd/frank.odd/frank, the federal reserve members took responsibility for the safeness and soundness of money and production oversight. dodd/frank moved that to the cfpd. and yet in 2015 the "l.a. times" reported that wells fargo with cross selling pressures on consumer bankers was encouraged and encouraging fraud. wells fargo paid $185 billion in fines. and i know this is somewhat of a hypothetical, but i'm curious. so dodd/frank in this instance with these -- whoever's doing this missed this and it's a profound miss. do you think it would have been any different had it been left with the federal reserve? well, we have cooperated hills or the al or theally with other regulatory agencies to engage in examinations. and in this case, the consumer financial protection bureau was involved. the comptroller of the currency. most of the abuses that occurred were in the national bank where the controller of the currency has responsibilities. that's been historically true. so, you know, they did find thes

for a dodd-frank pullback, what do you think they are?exactly what will transpire here with dodd-frank. however, as a bank analyst, the way i think through it is, let's look at what some of the suggestions are from the existing house blueprint. you have that from the house financial services committee. when i read through things like is that wei expect will likely see a continuation of a path that the fed started a few months back, which is reducing some of the restrictions on smaller banks. jonathan: on the back of the rally that we have seen, does it have legs going into 2017? the idea is we get a steeper curve, softer regulation. is there enough for the rally to continue? >> it's a great question. we are overweight large-cap thanks at morgan stanley, stocks in particular we like our monte centers -- money centers, credit card names, b of a, citi, wells fargo. the reason why we are overweight and not calling it done here is for several reasons. number 1, 10 look at the rally in the stocks since the election, between half to two thirds o

the dodd-frank economy does not work for working people. here craddick red tape in washington mandates are not the answer. the policy team will be working to remove dodd-frank and replace it. on that hope it appears people are buying into banks. david: sort through that, what does it mean to dismantle dodd-frank? michael: we do not know. one of the reasons that the people who voted were so upset was the outrageous profits that bank people make, and the little guy gets screwed. and yet we are talking about dismantling banks. i have another graphic, this is profits from commercial banks. we have dodd-frank but they are at wrecked of dutch record levels. -- record levels. it has changed the nature of banking. it is really hard to tell where they are going with this but the bat is that line will go even further up to the right. jonathan: the banks in europe are trading on the bottom paragraph of what is on this website. the big banks got bigger and the community financial institutions have disappeared as a rate of one per day. i wonder whether

he is not a great fan of dodd-frank. is dodd-frank dead, what would replace it? good morning. banks have had quite a week on the idea that maybe we are going to see the regulatory burden lifted, rolled back, and we have a steeper yield curve. how much further to the banks have to run? >> it depends on how much further we think the yield curve will move. looking at there valuation rally in the european banks, you are some sort of relief rally. they were trading at lowe's. it is important to distinguish between those that have u.s. abroad -- u.s. operations and those that are not affected by the dodd-frank. the is a big positive for european banks and banks like barclays that have business in america. wilbanksggregate, benefit generally -- will banks benefit generally? it feels like basel cannot go any further. the regulatory run which we have seen since 2008 has hit a high water mark. >> i would broadly agree with that. to be a bank investor at this point, you have reached peak regulation on both side of the the -- on both sides of pond. if you look at places like italy where t

as we look at dodd-frank, the number one problem with dodd-frank is it's way too complicated and it cutsso we want to strip back parts of dodd-frank that prevents banks from lending, and that will be the number one priority on the regulatory side. >> so is it too late to buy? jason, great to have you with us. you pare off what mr. mnuchin and what mr. trump has said, and i would suspect you're the most realistic on this space for many, many years. >> i'm a lot more popular, but it's a lot more fun when the stocks are going up rather than going down. prospects for higher fed funds rate, and even if you don't get that, up 25 basis points, prospects of lending on the back of infrastructure spend. taxes will aid the banks, particularly from those who get earnings from the u.s. we face every year more and more regulatory burdens. the prospect for that is to get better, at the very least, not getting worse. >> you unleashed buckets of optimism, and a year ago or even less there might not be a single bucket on the list there. in terms of rallying we've seen since election day, how much of that

the dodd-frank economy does not work for working people. bureaucratic red tape in washington mandates are not the answer. mr. trounced republican allies in congress are ready to move in that he won his name is floated for treasury secretary. >> legislation and i've had a chance to brief president electron bonds fell president electron funds filamentous and legislation to effectively repeal and replace dodd-frank and i hope i can help the president is chairman of the house financial services committee. if they're interested in talking about something else i will certainly answer. >> is trumped by the republican party try to turn those debates ensign financial institutions so they can want again gamble with our economy and bring it all crashing down, we will fight them every step of the way. >> and should not pull out the champagne yet in october the repeal of the glass-steagall? that forced big thanks to break up after the depression by spending off the investment banking operations. mr. trump said he supports the 21st century version of gla

trump's transition web site says dodd-frank contributed to slow economic growth, the dodd-frank economynot work for working people, it says in a new posting. bureaucratic red tape and washington mandates are not the answer. >> so, what is the response from congress? >> well, mr. trump's republican allies in congress are ready to move, including one whose name has been floated for treasury secretary. >> the legislation that i have had a chance to brief president-elect trump on that months ago, and that is our legislation to effect tischly repeal and -- effectively repeal and replace dodd frank. hope i can help the president as chairman of the house financial services committee. if they want to talk about something else, i will certainly answer the telephone. >> but trump critics say, not so fast. >> if trump and the run -- republican party try to turn loose the big banks and financial institutions so they can once again gamble of our economy and bring it crashing down, then we will fight them every step of the way. >> the banks shouldn't pull out the champagne just yet in october mr. tru

the last bit of the last paragraph and what it has to say on dodd-frank. we will be working to dismantle the dodd-frank act and replace it with new policies to encourage economic growth and job creation. the implications are massive for the financial sector. you could see this going horribly wrong. you could see a return to the difficult days when the financial sector had to separate investment banking and retail banking, all the things people are really fearful of that dodd-frank tried to deal with. the implications to the financial sector could be absolutely massive. i don't think we can underplay this. some saying it will be an absolute disaster were against happen. other saying they simply cannot see it happening because the implications are enormous. but it is here already in black and white. this could be one of the first areas the transition team tries to tackle. to be the financial services front and center for the new administration coming in. considering moves in markets that we've seen, the moves higher in yield also has some people interested i

so as we look at dodd/frank, the number one problem with dodd/frank is it's way too complicated, andcuts back lending. so we want to strip back parts of dodd/frank that prevent banks from lending, and that will be the number one priority on the regulatory side. >> joining us now is senate banking committee member jeff merkley, a democrat from oregon. senator, it's great to have you here. >> good to be with you. >> you tweeted "mnunchin for treasury. does donald trump really think voters wanted to put a wall street banker in charge of wall street?" how is this different than hank paulson in charge of treasury or secretary lew who came from citigroup? >> well, you heard him say he wants to deregulate wall street and allow predatory lending, something he is an expert in because his bank did it and they had quick, fast foreclosures on families. if you want somebody to dismantle the protections for consumers, he's just the guy to do it. but that is, in fact, the opposite of what trump campaigned on. >> but there are some banking executives who would acknowledge that regulation has been he

>> we still need to see devils in the details of holding bank dodd-frank. you cannot originate a marginal vallone today. you have to marge nature really pristine loans. if we open up the credit and if these poefld. i think these banks do look like a lot more room to run, mainly just because there were such tailwinds except the hank. >> i have six companies that you liked. are there any banks that wouldn't benefit from this? >> i don't -- well, certainly i have two, so i wouldn't quite call it throwing darts, but certainly that's how much it has to do. do higher rate mean higher profit for these guys, or is something else at work for you. >> the problem is, as we go further, who is going to turn the positive microvai rant, and therefore, bigger buy backs, bigg bigger. >> i know you like ciya zions something you enrichd. >> with higher short term rates, those will benefit the most out of the gate. those are the names that we say if you really want to take explosion now. if you get to the fed to start raising out of that group of names. >> well, as we mentione

the entire dodd frank reform regulation. and all of the regulations under it. mr. trump might try to do something there. it is very likely. also with the dodd-frank's rule, congress has been talking for a while about repealing the entire law and that would repeal all the regulations written under it. so that could help out the payday loan industry and bring back some of the industry that had been shut down. host: and we have a story from bloomberg news. , from his official website, it says big banks have gotten bigger and community institutions have disappeared at a rate of one per day. the taxpayers remain on the hook. the financial services implementation team will be working to dismantle the dodd frank act and replace it with new policies to encourage economic, economic growth. dolly from apple valley, california on the democratic line. good morning. caller: good morning. i was calling on another matter, but timothy is explaining this morning. host: go ahead. turn down the tv. was calling on another matter. you are doing what i wanted you to do, explaining in mo

. >> as we look at dodd/frank, the number one pblem is it's way too complicated and we want to strip back parts of dodd/frank and that's the number one priority on the regulatory side. >> one person who has not impressed senator elizabeth warren, he's the forest gump of the financial crisis. he's managed to participate in all of the worst practices on wall street. stephanie ruhle joins me. >> you're elizabeth warren. goldman sachs used to be lovingly known as government sacks because you would see the senior executives leave goldman to go on to government. why? because the beautiful little loophole that those massive amounts of goldman sachs stock that they own when they go to work for the government, they have to immediately sell it tax-free. that is a win-fall. now, steve mnuchin hasn't worked at goldman for a long time but remember, the subprime crisis crippled people in this country. >> and explain that for people. i was reading up on it. i didn't remember the history of this. he bought this little bank, not so little, in southern california that had all kinds of mortgages attach

notd dodd-frank is unnecessarily complex, going back to the dodd-frank situation, is just asking fornother big financial -- that, when youn look of the financial regulation that donald trump is talking about and changing the nature of financial regulation, how do you think that would actually happen? financials and stocks have been performing. i wonder if that is down to what is happening in the yield curve or what trump -- or of trump's chances looking little better? it has to dohink with candidate trump at all. thinkthe fact that people rates will grow up, maybe the says will raise rates. >> the idea of lower for longer. a lot of economists, academics on wall street, are taking out on the x axis, they are going out even in 2000.1. do you have a belief in that and what does that mean for wall street? are right to stay low for a long time. the biggest risks in the market is that the markets lose confidence in quantitative easing. the question i get all the time is when do i think that will happen. i am the last person in the world to ask that question to. being wayulations on .ut fro

to recognize that an enormous amount of work went into the creation of dodd-frank and there were a lotreasons for it. we do not make sure have revisionist history and recognize the history we came from. but whenever you put a new regulation, there are unintended consequences that come with it. put a new regulation, there are unintended consequences that come with it. so how can we make sure that we are modifying the regulation to make sure it is in fact having the impact you wanted to have? you say that president-elect trump is good for the exchange and financial markets? >> from what we have seen so far, which is only a weekend, i would say republican administration that has a pro-business orientation would generally be good for the financial industry. cute is also pledged to back on corporate taxes. how big of an effect will that have on the exchange? speaking, if you have some of the tax policies they are considering in terms of changes, the repatriation tax, that really drive, make it so companies can optimize the cash they are generating and andvested appropriately reinvest in gro

i don't see a tearing up of dodd-frank.e a repeal and replace of dodd-frank or large portions of it. chairman hinterling has introduced the financial choice act, which is his replacement for dodd-frank, and it's anything but easy on the wall street banks. it doubles the penalties for wrongdoing, it requires higher capital accounts, leverage capital accounts, so i wouldn't say that the choice act goes easy on wall street. >> you've said in the past, cam, that trying to imagine what a trump administration would do depends on the people he surrounds himself with. we don't fully know that. in fact we really don't know that to a large extent yet. what are you watching for to sort of try and divine where things are going to go? >> well, he has not assembled his economic or financial team yet, so i think everybody needs to take a breath and wait for those individuals to be put in place. but certainly, for example, in the s.e.c., paul atkins might be a candidate. he's heavily involved in the trump transition. he could be a possibil

is dodd-frank doomed? what are the implications for the sec?department of labor fiduciary role? joining us, the head of rick maggiore intelligence at round brothers harriman. he joins us from london. thanks for joining us. obviously it's always tricky to assess what policies to expect out of this administration because at times it has been contradictory, but in your view, what is the most likely change the financial industry can expect under president trump? guest: yeah, as you say, joe, it's often difficult to predict because the details were not as fully fleshed out as in past elections. what we should not expect is a full-fledged repeal of dodd-frank. i think we should expect the house bill, the choice act, to gain traction early next year as republicans look to push through the reform bill for dodd-frank. scarlet: here's another way of asking the same question. for the republican party, the gop, what will they preserve? guest: when you talk about the republican party, we talk about it as a monolith, but it is made up of different groups of

if dodd-frank is on a table, as it apparently is, some aspect of dodd-frank have been effective. most people would consider, even chairman greenspan's comments, that higher capital at major financial institutions is a good idea and has made those institutions sounder and safer. think, your hand, i know, you do not want to treat all financial institutions that happened to be greater that have balance sheets more than $50 billion identically because they do not all represent the same systemic risk to the system. so certainly there is room to improve dodd-frank. one might wonder whether the consumer financial protection bureau has been a net plus or not. the jury is still out on some aspects of dodd-frank. i think there is a lot of room to improve it. i think if you repeal it, then the question is -- what do you replace it with, if anything? jon: the one thing you can repeal is dilute. it is a careful balancing act. you want them to have more capital, but at the same time, you are eroding risk-taking capital. as far as you are concerned, gary, how negative has that been? gary: we ha

that's another thing about dodd/frank.way, you don't shed a tear for the compliance officers that's going to lose their jobs? >> i think one of the -- >> unemployment is going to go up. >> that was a joke. >> i think one reason employment has gone up is we've had so many additional -- >> there's an argument for that. my friend wants to go. >> this is huge stuff. >> we'll have neel on tomorrow. we'll ask him. >> steve's leaving but sam is staying. >>> and at the top of the hour, the chair of the senate foreign relations committee bob corker, his name has been thrown into the ring of secretary of state when trump takes office. programming note neel kashkari will join us tomorrow in the 6:00 a.m. hour of "squawk box." we'll be right back. ♪ it's been over 100 years since the first stock index was created, as a benchmark for average. ♪ yet a lot of people still build portfolios with strategies that just track the benchmarks. ♪ but investing isn't about achieving average. it's about achieving goals. ♪ and invesco believes doing

we would like to see the opportunity for dodd-frank to be modified to allow banks to take risk in the as they had to provide that liquidity. to recognize the fact that an enormous amount of work went into the creation of dodd-frank, and there were a lot of reasons for it, so we need to recognize the history we come from, but we also know that whenever you put in new alwaysion, there is unintended consequences that come with it, so how can we make sure we are more likely modifying regulation to make sure that it really is having the impact you wanted to have. >> would you say then that president-elect trump is good for the exchange? i would say a republican administration that has a pro-business orientation would generally be good for the financial industry. cute has also pledged to back on corporate taxes. how big of an effect will that have on the exchange? >> if you have some of the tax policies they are considering in terms of potential changes in corporate tax rates, the repatriation tax, holidays and other things like that that make it so companies can optimize the cash they are

we would like to see the opportunity for dodd-frank to be modified for banks to take responsible riskg to provide that really important liquidity. betty: modified or retracted? adena: we have to recognize an enormous amount of work went into the creation of dodd-frank, and there's a lot of reason for it. we have to be sure we do not have revisionist history. we also know that whenever you put in new regulation, there are unintended consequences that come with it. how can we make sure we are modifying the regulation to make sure it is having the impact you wanted to have? betty: would you say president-elect trump is good for the exchange? for the financial market? adena: from a we have seen so -- from what we have seen so far which is only one weekend, a , republican administration with a pro-business orientation is good for the financial industry. betty: he has pledged to cut back on corporate taxes. how big an effect is that going to have? adena: if you have some of the tax policies they are considering, in terms of potential changes in corporate taxes, the repatriation tax, holiday

that have been put in place coming from dodd-frank, there has been unintended consequences.otably banks are no longer in a position to offer much-needed liquidity in some of the markets where we operate. we would like to see the opportunity for dodd-frank to be modified for banks to take responsible risk taking to provide that really important liquidity. betty: modified or retracted? what would you prefer? adena: we have to recognize an enormous amount of work went into the creation of dodd-frank and there's a lot of reason for it. we recognize the history we come from but we know whenever you put in new regulation, there are unintended consequences that come with it. how can we make sure we are modifying the regulation to make sure it is having the impact you wanted to have? betty: would you say president-elect trump is good for the exchange? is good for the financial market? adena: from a we have seen so far, which is only one weekend, a republican administration with a pro-business orientation is good for the financial industry. betty: he has pledged to cut back on corpor

if you are telling dodd frank inside the tax package, i don't think so. you're going to have a lot of push and pull within congress on that one. this is something people are still scared of deregulating banks. i think we're way too optimistic. hey, listen, that's the way i'm playing it. i'm taking my prochts on financials, and i'm banking on another sector which i think has been beaten up even more. >> some of the preceps of that. you actually get to that. it might be six months. might be a year. might be a rollback and benefits those guys as far as regulation. is it the same true about obama care? >> you're absolutely right. meanwhile, i'm picking up north of 3% dividend waiting for these wonderful things to happen. you can't say that about any of the financials or at least the bulk of them because you have the risk of a turndown on your valuation. you've had a 16% move in some of these regional banks. they could break your heart by losing 5%, 6% next week. i think there's too much volatility. give me the diversification of medical supplies, of biotech,

dodd-frank was also bound to come up. sure enough, it did. janet yellen did support the efficacy of dodd-frank, saying that if it fosters a stronger banking system, it diminishes other crises. the big take away was that she would serve full-term before the 2018, crossing any speculation -- and it was, wasn't it -- that she could fall under criticism. vonnie: that she may the inclined to or that there may be pressure placed upon her from fiscal authority makers. speaking of fiscal authorities, donald trump is in trump tower meeting with people today are the next is nikki haley, governor of south carolina. the campaign manager saying they are eager to get nikki haley's advice at this point. we will get more up dates over the weekend, saturday and sunday, we are told. press briefings will occur. oh, one-time candidate -- you are watching "bloomberg markets. " ♪ mark: live from london and new york, i am mark barton. close onhe european bloomberg television. speculation surrounding president-elect donald trump's candidate continues. discussing tho

dodd-frank means a lot to people on main street and not wall street. i would be surprised today if there's not anything about the veterans administration. i think he -- i think he's hitting the right notes. look at the stock market. it was humorous on tuesday night when the futures tanked, i think at wasn't point 800 points but once people woke up on wednesday morning they said, this is not such a bad thing. maria: that's right. >> think repealing dodd-frank is going to send another good message to the market. maria: we know these are the rules that have been hampering small businesses. >> it's hard to get a loan unless you're a big guy. >> i think people have expectations that obamacare is gone and dodd-frank is gone. it takes a long time to transition out of policies. what can people expect there? >> i don't think anybody is expecting, you know, to get a new letter from their insurance company saying never mind, the premiums aren't going up so much. no one is expecting that. it's just that you've got to show -- show everybody, your voters that you ha