shift i think we've got most of the rules and regulations in place or we're about to finish with dodd frank like i said we need some more rules and regs for cheetos we need insurance fund but you know another rule or another regulation isn't going to change the culture that think it's got to come and people need to walk with their wallets and only invest in good corporate citizens who don't pull off these crappy shenanigans so i would say don't trust regulators but look we're government we do the best we can with the resources we have i think we do a good job given that but there's going to be times where we're slower than most of us would like that's frustrating but that's just the way it is unfortunately. that's government so just one more reason for everybody to heed the old adage let the buyer beware it just seems ever more relevant after hearing regulators speak to all of these issues now we've got just so much more with bart chilton so go to into you tube channel you can see more on high frequency trading more on the issue between more regulation versus enforcement we had a sound bite from e

like dodd-frank or things like that? >> dodd-frank was passed largely by democrats alone. ilked to democrats embers of the house and senate who do agree that there needs to be some changes. 9000 pages to propose the final rules as we speak. it is under the gun. the average community bank has 35 employees. how do they respond to 9000 pages of regulation. dennis boswell three -- these are serious matters. fix it. grow the economy. connell: thank you, as always, sir. >> thank you, connell. connell: republicans still say they are shocked that betty romney did not come out on top last week. how did they go so wrong with the numbers? we will talk about that. one senator ready to go over the fiscal cliff if there are not higher taxes on the risk. plus, today's winners as they see them right now on the s&p 500. markets are down a little, but these stocks are not. they are in the green. ♪ tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#

i couldn't pronounce their names. that's not my idea of prudent finance. >> rose: doesn't dodd-frank speak to derivatives? >> it does, to some extent. but i'm likewarren, i haven't read the whole thing and i have not written about in the which case i really would have an opinion. but i could not express a strong -- the volcker rule appeals to me. >> rose: does it appeal to you? >> it appeals to me. >> rose: it's the right thing? >> in general. i think the more banks stick with just pure banking the better i like it. they have a franchise from the united states government in that people look at their deposits and as guaranteed by the u.s. government. that's not totally correct but that's what they -- and when you have the ability to take in money from people who feel that they have the u.s. government behind it, they're going to give you money whether you're credit worthy or not and therefore you need some real regulation to make sure that people don't go wild with that franchise and banks with those funds and with that trust can some do some pretty extreme things. particularly when they've got -- the upside belongs to management. i don't worry a

like dodd frank aren't even part of the fiscal live. those issues are going to remain. taxes most likely will be higher. i think the business community, investment community, leans a little more conservative. they are buying 30-year bonds. don't dismiss what that may mean. operation twist, probably when it ends, turns into a quantifiable treasury buyback program. that's what that rally is telling you on the long end as well. >> qe-4, maybe, at some point. joe, are you scooping anything up? are you just going to let this thing continue here? >> much to rick's point, you know, anything gold related is very similarly where investors are going right now. you can see the buoyancy it's had thus far. a little selloff yesterday was shrugged off. now it's been solidly green today. i think anything related there is going to continue to be the case. of course, you want to keep your eye on the hospitals and related services. also, keep your eye on the home builders and materials. the companies that provide those materials because that's going to be the next focus for the government if they're going to get the jobs to

pragmatist that i think he recognizes that and he's not going to punish the jamie dimons of the world or anything like that. he wants to enlist them. >> i wonder in terms of dodd/frankelizabeth warren is going to be in the u.s. senate and i'll read an excerpt from "new york" magazine. obama will probably not morph into a fierce anti-bank reformer who will set out to make wall street life's miserable. that duty will fall to senator elect elizabeth warren. when it comes to treating bank executives as wise statesmen whose council is sought on economic issues a second term obama will feel freer to tune those voices out. the retirement of tim geithner as treasury secretary and who he chooses next. tim geithner a creature of wall street. some names floated according to you, jack lou and ears kin bowles. i question whether he would do that because it would be such an affirmation of bowles-simpson which he turned his back on in the first time. >> bowles-simpson may well be the framework of the deal we get to get off the cliff anding? senator dick durbin has put out there as where we should go back to. once you get past the election, we've seen it before. something that didn

will lower their taxes deregulate and repeal dodd frank legislation well i don't really get why they would be mad and tell you why because inequality gap is like the buzzword right now in the u.s. media there are estimates showing that in the last twenty years by the way with republicans and democrats equally the real income of the top one percent has been growing nine times faster than the real income of the lower ninety nine i mean the inequality gap which president obama does speak about partly because of occupy wall street and the ninety nine percent movement which pushed him to speak about the greed and the recklessness of wall street and the inequality but is it an overrated issue the inequality gap no is it really going to see it is it is a terrible issue when you're right that it has grown not just under republicans but under democrats it's a bipartisan issue over these last forty years workers' wages have stagnated and in the last two years ninety three percent of the income growth has gone to the. top one percent this is a scandal this is obscenity what's also important is not only the revival of a middle class which is under terribl

you know, in kind contributions but i mean all his body movement was like do whatever you can to elect mitt romney. this guy is bad for business based on dodd frank and some of the other things that the president has done. so jamie is not on the list. like i said the closest you've got is the gentleman from american express. this thing is going to occur wednesday. as we know, there's what, how many days left before the fiscal cliff hits, i thought i saw some graphic that said -- cheryl: there's a countdown, a calendar. >> why is the fiscal cliff a big thing? why does wall street, big business don't like it? they don't like it because probably if it happens, you are going to go into recession if all the cuts kick in. i will say this, this is the sort of negative about this meeting. it is all big business leaders, meeting with the unions first tomorrow. corporate america, like big-time corporate america the next day. when is he going to meet with small businesses? because remember the president's tax plan -- cheryl: 49 days. >> it calls for increasing on people making 250 and above. those are families. those are small businesses. they file as indiv

dodd-frank has been completed. i don't think the uncertainty, even after resolution of the cliff, is likely. i don't think it's going to end. >> look at what that does for 2013 then. it says that means we're going to have even slower growth. this is a one-time give back to the shareholder instead of investing in this something that can produce returns year over year. what does this mean for 2013? i say slow growth. >> maybe people are more likely to sell it next year. is that possible? >> potentially. i think you have to look at the specific company. obviously, some of the bigger companies that have a lot of cash on their balance sheet, if they're just using a small portion to give that dividend, maybe it's not so concerning. if they're wiping all their cash off their balance sheet, i'd be very concerned about that. >> and we're showing you a list of some of them. if you could go back to that previous list, my point is going to be you're not seeing any particular industry group. it's across sections there. las vegas sands and gaming. ethan allen in retail furniture. brown forman in the disti

dodd-frank reign in some of the excesses that you saw? >> guest: i'd say some of the excesses. there are good things in dodd-frank like the consumer financial protection bureau, which ia good addition. there's some improvements in dodd-frank to the way we approach the banks so that's on the good ledger. ultimately, though, i think dodd-frank failed of what it was supposed to do which was end the era of bank bailouts and of too big to fail. there was app opportunity, really, for it to be effective. there was a bill that was pending in the senate that had bipartisan support, and it seems crazy to say those words these days that there was bipartisan support to break up the banks, and it had -- it ultimately got 30-something votes, but it got killed by the treasury department and by the white house, and they lobbieded against it, campaigned against it, and afterwards, they told the media that, you know, this bill would have succeeded if they had been behind it, but they were not. as a result, we didn't break up the banks. the banks are now 20%-25% larger than they were before the crisis, and just as dangerous. i think by failing to take the steps, in many ways, dodd-fran

the democratic party had an opportunity and i feel like didn't take it in the last four years. >> scott, to that point, dodd-frankplete in reforming the financial system. >> yes. >> what do we need to do to prevent another collapse? >> well, my sense is that a lot of these panics are built around a stable institution that -- a stable bond, aaa, that is going to provide you something like 4% or 5% interest. that aaa bond is in trouble. right now what needs to happen, i think, the derivatives market finally has to -- there has to be some response to this incredible leverage. you've got the lcfos. the large and complicated financial organizations in a derivatives market whose nominal value is 600 trillion. and none of that -- none of those assets are really backed by collateral and has to come in. the leverage has to be eliminated and the last part of dod dodd-frank, the part that's not been worked out. i hope that a sort of both sides of congress will agree that something needs to be done there. to me, that's the danger. that's the thing that -- a reason of sovereign debt funds and reason firms are not back in the

argue he accomplished quite a bit, whether you like it or not, health care, stimulus plan, dodd-frank-- there's all kinds of stuff. and now he wants to, ink, focus on a deficit plan and immigration reform. >> ifill: but isn't there danger for over-reach? >> there is, but if he wants to accomplish something he has to work with congress. the next few weeks will be aization situation if somebody overplays their hand, underplays their hand. it will be very interesting the next few weeks. >> i would say on that i think there is a danger for over-reach. but obama was careful last night. his remarks were fairly humble, and for the historic achievement that he made last night. and i think obama and boehner and rea reed all know that their legacies are tied together and they reside around one thing-- can they find common ground. >> stuart rothenberg, you can find more on the future of the affordable care act from our partners at kaiser health news. that's on our website. >> woodruff: and finally, here with us, where they have been during the campaign, the conventions and election night are syndicated columnist mark shields and "new york times" c

i expect an attempt to do that here. how about banks? most banks are down 2% right now. dodd-frank changes are less likelyt this point and concerns about more regulation here. high end retailers, i see weak. tiffany was weak. coach was weak to the extent that tax cuts on wealthy are coming into effect. finally, the one thing i would hope for, let's hope for more reproachment between wall street and obama. geithner is stepping down. there's a chance. on the downside, elizabeth warren won in massachusetts. she's going to be a gadfly for regulation. >> this call is something traders are talking about in terms of why we see lower prices here particularly in industrial commodities. the fact that we are liken to see status quo in congress and what that will mean for the fiscal cliff. there's concern about growth. the weakness in the euro is a factor. copper is lower. palladium is lower. precious metals are benefiting. there's the belief that we'll see fed chairman ben bernanke in there or more continuation of that and continuation of lower interest rates. that's something that traders liken and that's why they'

dodd/frank. but they're getting good numbers and banks do nothing but belly ache anyway. i think they're getting oversold. overall, i look at most stocks like this. for the moment they are too high. but the process of wrenching expectations down is under way now. and so therefore is the correction. and ultimately, the capitulation. when we can beat the new lower expectations starbucks-style and bridge the fiscal cliff, i'm confident that we can come back strong. so here's my bottom line. we have cons galore. but there are some pros out there, too. unfortunately, it's sequential just like the cart before the horse. push the cons down before the pros bring it up. only then can we return to a more hospitable market. let's go to austin in maryland to start. austin? >> how you doing? >> okay, austin, how about you? >> not too bad. i've never done stocks before. i want to look into getting into what you thought about getting into wal-mart stock. i know they have the early black friday coming out. >> no. no. stephanie link, co-director of my charitable trust and i both talked about wal-mart today. we agreed that this stock could go down, maybe eve

like the sustained growth that we want. i personally am worried about the credit availability so the combination of dodd-frank and the new international court battle are going to crimp the credit market. stuart: you know what we are talking about and appreciate you being with us. i got to take you up on something. you cannot tell me that if president obama gets a second term and raises taxes you cannot tell you will get 4% growth. you don't believe that. >> president obama can't raise taxes without republican support. [talking over each other] stuart: obamacare -- [talking over each other] >> forget about obamacare -- [talking over each other] stuart: can you get 4% growth of the raise taxes early in july? you don't think >> no. [talking over each other] >> what do you think the growth rate was in 1984 when ronald reagan ran for reelection? stuart: i don't know for sure. >> 39%. when george bush lost to bill clinton -- stuart: i'm not talking about this election but how to get the economy going. this is the united states of america. we are coming out of a robbery session. we should be growing like we were under ronald reagan. weenie e

sort of agreement, whether it is punting and freezing the current system -- i think the big ticket items like revisiting dodd frankr glass- steagall will probably be pushed off until a later time. host: it talked about the tip of the candidates vying for the fourth spot and republican leadership. will you get any indication of the direction of the congress based on to it is able to get that leadership post? will not get any sense at the republican caucus and what they plan to use as their direction in the next couple weeks and into the new congress? guest: i think so. rogers, even though she is, has been very much out there in front of a republican causes, she was a top surrogates for the romney-ryan campaign. she was regarded as more favorable towards leadership, she is a more reliable vote for the leadership. sense it should be a little less antagonistic than some of the more conservative elements of the republican conference. tom price again has a reputation for being a little more hard edge, a little bit more of a partisan lawyer, he has backed some of the more conservative elements of the republican conferenc

likes of morgan stanley and goldman sachs recently. the bigger question is can you get r.o.e. up 7%. it's the capital requirements and dodd-frank. >> when iee these acquisitions and stock goes up, banks have to start acquiring other banks again to have profit margins go higher. >> we're not talking about smaller guys who aren't public talking about commission dollars go down and capital makes it very difficult in the brokerage business. still to come, handicapping tomorrow's election effects on the market and front lines of the gas lines of the local station. get ready. another big day of trading ahead. the opening bell is up in three minutes. for over 60,000 california foster children, the holidays can be an especially difficult time. everything's different now. sometimes i feel all alone. christmas used to be my favorite. i just don't expect anything. what if santa can't find me? to help, sleep train is holding a secret santa toy drive. bring your gift to any sleep train, and help keep the spirit of the holidays alive. not everyone can be a foster parent, but anyone can help a foster child. he loves risk. but whether he's climbing evere

place, things like dodd-frank legislation in the volcker rule to make sure that banks are not in a situation to have a systemic impact on the overall markets. that is why we are cautious. io not have a horse in this game one way or another. my point in this discussion is that it is a healthy debate. yes, we of knowledge the idea that there were some financial improprieties, surreal improprieties that led up to the crisis. the flip side of the coin is whether or not we need wall street banks as conduits of capital, it means for us to conduct business. if that is still the case, it would be tough to regulate even more or guarantee even more to sacrifice the future just because of things that have happened in the past. hopefully as a country in the industry, we have learned our lessons from the past. host: breezes to the front page of "the wall street journal -- that brings us to the front page of a "the wall street journal." the stories about her leaving as the head of the sec. what you think wall street's reaction will be to this? guest: you can kind of tell right now, it is what it is. the house not then a massive sell-off because of it. you have not seen a massive rally

i think we've identified with the pitfalls are. now we just need to take the steps only necessary to fill the gaps and not try to do like we did in dodd-frank about his story whole blanket over the whole thing. >> sir, have you referred to report findings to the justice department? >> we will be distributing this to all the relevant agencies. some have been given an advance copy, but everybody will have one on the website. we hope that some of the people using these will go and look at the report as well. >> is there a formal process of referring the findings to the justice department? [inaudible] >> yeah, right. [inaudible] -- and this reelection of duty. first of all, how do you feel that mr. corzine's culpability, do you think he should be charged civilly, criminally, based on what you've learned? >> what we saw was mismanagement at its highest i believe. mr. corzine at a vendor said the business he had taken over as ceo. he was trying to transform into something it had not been in the past and when people disagreed with them he found other positions. he brought people and he felt like he could control sco, chief operating officer, so ba

place, things like dodd-frank legislation in the volcker rule to make sure that banks are not in a situation to have a systemic impact on the overall markets. that is why we are cautious. i do not have a horse in this game one way or another. my point in this discussion is that it is a healthy debate. yes, we of knowledge the idea that there were some financial improprieties, surreal improprieties that led up to the crisis. the flip side of the coin is whether or not we need wall street banks as conduits of capital, it means for us to conduct business. if that is still the case, it would be tough to regulate even more or guarantee even more to sacrifice the future just because of things that have happened in the past. hopefully as a country in the industry, we have learned our lessons from the past. host: that brings us to the front page of "the wall street journal." the story is about schapiro leaving as the head of the sec. what you think wall street's reaction will be to this? guest: you can kind of tell right now, it is what it is. the house not then a massive sell-off because of it. you have not seen a massive rally. there is a sense that when it comes to walter, in

i don't think we're going to be -- we know we're not going to be repealing obama care or dodd-frank. and so we know there are some other issues like immigration that were put front and center on the table. so members of congress by definition, most of them get there and want to do something and they also operate out of self-interest. and i think it will be in the self-interest of both parties in a non-presidential psych toll get some stuff done. so i'm a little more optimistic that things will happen. again, you got to use all your tools. i think the number one way to rise above on any particular issue, to rise above the partisanship is to figure out with your members of congress to make it about thire state, atheir dillstrict, that jobs, the jobs in their state or district. and their local economy. and in particular in this economic world right now that is very important. and i think is very important. members of congress sometimes act against what might be their core ideology if they see it that is particularly beneficial to the state or district therefrom. >> -- they are from. i think i am probably a little bit more cynical. i