. >> i agree that i certainly wouldn't want to see control ceded to the fasbe as well as efforts to achieve conformity with gap and international standards because i don't think they're necessarily reflective of real economic lives. i think when you look at different industries and different classes of assets, the lives that we have a for tax purposes are much more consistent with reality than what you see from a gap reporting perspective. but i do believe that if we move towards greater reform and a low enough tax rate, that some of the differences, the large differences between book and tax would have to be eliminated in order to fund that. and that consistency probably would be beneficial overall. >> okay. >> this is a great question. i think one thing to notice is that book tax differences, when we talk about them in this arena, it's not that all of them cause problems, it's just that the permanent kind are better than a temporary kind because that allows you also to increase your accounting earnings. i've done a lot of research on book tax conformity, actually, and i think it's a bad i

concern about who would make the rules after the conformity would happen, if it would be congress, fasbe or the international accounting standards board. and i think that would be very hard for the u.s. to handle the international and accounting boards considering our tax base. thing is a lot of reasons why book tax conformity wholesale is a bad idea. i think there are different things we could look at. but wholesale book tax conformity is not a good idea. >> i guess i would agree with dr. hanlon's comments. just for example, the example of moving to ifrs has impacted in terms of some of the discussion about u.s. tax reform. because if you move to ifrs, then lifa would not be allowed. it would automatically eliminate the current ability of some firms to use last in-first out accounting. there clearly is different rules for the accounting rules. and as a tax committee, you have different goals including revenue that are your objectives. >> i'd agree with most of what was said before me. really, the accounting rules are there for something completely different than what our tax rules shoul

i agree that i certainly wouldn't want to see control ceded to the fasb and to achieve conformity withgap and international standards because i don't think they're necessarily reflective of real economic lives. i think when you look at different industries and different classes of assets, the lives we have for tax purposes is more consistent for reality than what you see from a gap reporting perspective but i do -- i do believe that if we move towards greater reform and low enough tax rate that some of the differences -- the large differences between book and tax would have to be eliminated in order to fund that. and that consistency probably would be beneficial overall. >> okay. this is a great question. i think one thing to notice is that book tax differences -- when we talk about them in this arena it's not that all of them cause problems. it's just that the permanent kind are better than the temporary kind because that allows you to also increase your accounting earnings. i've done a lot of research on book tax conformity actually and i think it's a bad idea. the first thing is acc

i don't know i have enough confidence in the sec or any of the fasb to really know.force that discipline on him, if not the government and isn't the market scouring positions of counterparties right now and enforcing that kind of discipline? >> reporter: except for things that are under a rock that we don't know. there are things we don't know >> we can't prevent the future mfs of the world being stupid and risky. as far as our market is concerned i don't think mf or a type of mf situation is a problem. i think we're now focusing on other issues it shall it >> famous last words. >> earnings for the s&p 500 names have been really good this cycle, 70% beat on eps, that is much more important than greece. >> rick, i want to get your position right here that you think that many players in the market here or significant number have been sitting around watching these greek headlines and essentially have not dialed back their greek positions here? and that major u.s. banks remain exposed? >> what i'm saying is in an honest world mark-to-market there are many institution, ma