the remaining sl were folded under fdic. there used to be a federal savings and loan insurance. and -- they didn't have certain advantages that the bank had. for instance they were not controlled regularly by the comp controlle or the fredz. -- feds. it is the largest failure but it seems like like a huge jury raysic park institution was in many ways playing the role of a bank. they had a trading desk. but they didn't have the advantages of a bank of america or city ba >> that's a good point. absolut they weren't actually a bank. if you will. they were a thrift. and also, it's important to point out under their charter i a thrift they had to make a percentage of mortgages. it wasn't that they just up one day decided to make mortgages. they were always making mortgages because they had to. it was just that went down a different road than think had been previously. >> very different. , i mean, you recall a nation's bank he hated two things with it a passion. he hated mortgage lending, and he hated investment bankers. take that for what it's worth. things started to change. kerry c

. >> you write it "the creature from jekyll island" fdic is not insurance? >> it is hard to answer. the problem when you over insurer something to the point* of no risk at all, then there is a tendency for what you insure against to have been. you have the store ensured $41 million and a burns down but i don't know. [laughter] it is called moral hazard. when a government agency guarantees the bank cannot fail and will take taxpayer money if they go belly up you are encouraging banks to make risky investments. what do they have to lose? they do not have to suffer the consequences. and fta see is not really insurance. risky banks do not pay a higher premium. it is the same rate of moral hazard. those more conservative are making less money and reckless banks are making more money so conservative says we should be reckless. and that is a shorthand way to explain what has happened, next year the fed will be a 100 years old. it has been going on 100 years. >> host: what should be done in your view? >> there is only one thing. it is a cartel with the monopoly power it needs to be abolishe

but with the savings and loan collapse, the remaining snl's were folded under the fdic. there used to be a federal savings and loan insurance. but they didn't have shirt and advantages the bank said. for instance, they were not regulated by the comptroller of the currency or the fat. they didn't have the political pull. so it is america's largest banking failure, but it also seems like this gargantuan jurassic park institution was in many ways played the role of the bank appeared to have a trading desk, but they didn't have the advantages of a bank of america or a walk over yet. >> that's an absolutely good point. absolutely. they weren't actually a bank if you will. and it's important to point out under their charter as a threat. wamu had to make a percentage of mortgages. it wasn't that they one day decided to make mortgages. they were always making mortgages because they had to. it was just that they went down a different road than they had been previously. >> very different. hugh mccall and nationsbank, bank of america hated two things with the passion. he hated mort

secondly, the fdic is not really insurance. it does not really rate the banks. in other words, more risky banks don't pay a higher premium than a more conservative banks. they all pay the same rate, so this is another form of moral hazard. those who were conservatives and doing the best for their stockholders and investors and making less money, and the reckless banks are out there making reckless loans, making more money, and so a conservative banks say, i guess we better be reckless. the whole industry tends to go away. that, by the way, is a sharp and way of explaining what has happened to our banking industry over the last, well, next to the federal reserve will be 100 years old, so this has been going on for 100 years. >> so, mr. griffin, what should be done in your view? >> there is only one thing to be done. if you remember what it really is, a cartel. a cartel that has the monopoly power of our nation's money. the fed needs to be abolished. there is no way around it. you cannot take the power to create money out of nothing and give it to men and expect t

maybe what you briefly tell us about that. >> said the fdic, the regulator to shut wamu down made thisempt to suit kerry killinger on the head of the mortgage division and they ended up -- they sued for a billion dollars, which was unheard of basically they ended up settling out of court for a fraction of that. i think he was 64 million or something ridiculous below. by the way, most of that was covered by the executive's insurance policy at the bank. so they have paid almost nothing either. >> they got away with it? >> -underscore and pic and you'll forgive me and i'll try to come back to you. for those who have shares of sound they been merged with wamu, is there any chance their shares are worth anything? >> probably not, no. >> how would one find out? my suspicion is don't waste the brain damage. >> i mean, you would have to look to the bankruptcy court filing of the holding company, which is on the file for the after wamu was seized. they have i believe reached a settlement earlier this year. shareholders did get a little bit back, but not a lot. hardly anything. >> you think jpmo

title two together with some of the other authorities for instance at the federal reserve and the fdic have you have the basic template for how it's going to happen. >> joe, what is your take on the amount of regulation about, basically what the government has done in a regulatory framework since the financial crisis? >> well, there's a certain fundamental things that happened to, to the world of finance and it sort of raises a question in my mind, and again i'm speaking personally, not for my firm, and that is whether or not the creativity and ingenuity and in some cases diabolical nature of certain kinds of individuals that exist in all walks of life can be kept up with by regulators? so, you know, impolice it in the word regulation is that somehow there's real regulation going on and that one's able to protect the society from the excesses of the events that happen on a regular basis and have happened throughout history on a regular basis in our industry. so if you look at the financial system it basically evolved from a very low-tech paper-based system to, and, i might add, private

i have the perspective of the fdic. of business and the effects will be greater competition, for example. greater accountability of the institutions and, very importantly, i think it will begin to rationalize the use of federal deposit insurance and the government's guarantee behind these institutions so that we can fine it to what it was originally intended for and that's protection of the safety net and the intermediation process that goes on in commercial banks. i think our proposal that i put out addresses issues of the shadow banking industry. the proposal is forward-looking and i think the effects will be beneficial. in an important sense, i think, spur new activity and wall street and in the united states. so i'm very strongly supportive of not cutting them by size. >> the first of which the fdic funds are paid from the banks and the big banks pay the lion's share of the fees. these aren't taxpayer dollars we are talking about with the fdic. >> there are two safety nets. the fdic is the first line. let's be candi

which i think is the model you all are filing with -- you are following with the fdic. the senior debt holders that wiped out and the companies are forced to sell assets. all with a view toward protecting taxpayers from coming in and telling the institution out. but i think to sit around and say, you know, you can make $500,000 a year, but you can't. or you can make $5 million a year, he makes 25 million a year. but you, lloyd bling find, cannot. lloyd blankflein. >> i think the financial sector is different from every other sector. i think a widget manufacturer is constrained by space and time. you can have a factory and you can have three shifts. but there are so many tractors or batteries or things you can make. but what i think about the financial sector is that it is a place where the rubber never meets the road. there is no rubber and there is no road. the fact is that you can move almost unlimited amounts of money in extremely short periods of time. i think we need to treat the financial sector differently than other sectors in the economy. how to treat it? i thi

. >>> the fdic says lending to consumers has increased and revenue rose 21% in the second quarter to 31 billion up from 28 billion a few years ago. >>> a small but noisy group of protests expressed anger at a bank opening in oakland. it's a chase of -- it's a branch of chase bank at 14th and broadway. the protesters were were -- it's not clear why they were protests. >>> a second visitor to yosemite park has died from the hantavirus. all four visitors stayed in the signature tent cabins at curry village over a one-week period in june. people who stay in the cabins this summer, are advised to seek medical treatment. >>> san francisco police stormed a homeless camp as people there expressed their frustration and anger. >> that money, always money. >> police evicted dozens of adults and some children from an encampment from the -- it's on both caltrans and city property. one officer told us that a notice was posted last week about the cleanup. she said it's been an ongoing bat toll keep people out of the area. >> we have several encampments we pattle -- we battle. this this requires mor

from working at a fdic insured institutioo--like wells fargo home mortgage.the company didd a background check and found that eggers, who has worked in the call center for seven praak back in 1963."the situation showed that i had a criminal background that basee upon the federal statttes i was considered a risk in any banking or mortgages."a s background check showed eggers was convicted of fraud, even was convicted of operattng a coin changing machine by false means. a spokeswoman for ells fargo tells us the company has littte wiggle room under the new regulations. and that seems to be the case. "obviously companies are going to apply it fairly broadly to ssart with especiilly as they're developing their policies for it or as theyyre working their way through it. itts a pretty heftyyfine that the federal government is levying if they are not following through and nobody wants to et caught in that trap."comppnies violating the regulations can be ffned uu to 1-million dollars a day. a take. and while eggers understands the reasoning behind the regulations, he

the fdic's problem of banks fell from 772 to 732. cautiously optimistic about all of this. >> the industry continues to recover at a gradual but steady pace. this recover features rising profitability, attributable primarily to improving asset quality. more recently, we have also seen fewer bank failures and problem banks and signs of return to loan growth. >> one of the key numbers is that lending number, up $102 billion. that is an important number. in the last quarterly report, that number had been down, a good sign for the economy if lending is up and banks are injecting that capital back into the economic's bloodstream. >> thank you. from washington. >>> next on the program, analyzing the analysts, find out if today's wa ae's wall street and down grades are the right calls. harley davidson and sally beauty holdings. country was built by working people. the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more tha

including credit unions, asking them if they would be interested in receiving a deposit of up to the fdic-insured limit. at this time, we're still processing the responses we have got in. i think we have made three, four -- five deposits in financial institutions. a number of them at credit unions -- 1 credit union has responded. we're still in the process of receiving applications. i would be happy to update you as we get more. we have published those deposits monthly in our investment report. supervisor avalos: is there anything those deposits are hoping to leverage in terms of investments they're making locally that we can point to? >> we cannot put strings on those deposits. we encourage them in our invitations to use this money to be responsive to the community. i'm excited that the credit unions, that is really what they do. my hope is to get more of the credit unions to take advantage of it. four small credit union come a deposit of this size would help the more significantly than will help a major bank. it could make a bigger difference in the amount of funds they have available. i would

sheila bear, head of fdic, hank poulson. republicans who are have hands-on experience are supportive of what we're doing legislatively. it's only the abstract iran theorists who are just beyond--we'll take another historical phrase. they're invincebly ignorant. they have a theology that so encrusts them that no facts break there. >> eliot: and most of them have been in the private sector. the ones who are smart enough to learn from the record, including sandy wyle who was willing to acknowledge that his brainchild was fundamentally flawed. >> i annoyed jamie dimon when i said that his salary shut be on the chopping block, he said that he agrees. lloyd--these are people who yeah, left to their own they're going to be under the competitive pace. yes, it was the success certificate of wyle when i asked him why, you remember the sibs that were debts kept off the books. i said why don't you put them on your books? they are debt of the bank. he said, well, if i put them on my books i'll be at a competitive disadvantage to beat gol

title two together with some of the other authorities for instance at the federal reserve and the fdic have you have the basic template for how it's going to happen. >> joe, what is your take on the amount of regulation about, basically what the government has done in a regulatory framework since the financial crisis? >> well, there's a certain fundamental things that happened to, to the world of finance and it sort of raises a question in my mind, and again i'm speaking personally, not for my firm, and that is whether or not the creativity and ingenuity and in some cases diabolical nature of certain kinds of individuals that exist in all walks of life can be kept up with by regulators? so, you know, impolice it in the word regulation is that somehow there's real regulation going on and that one's able to protect the society from the excesses of the events that happen on a regular basis and have happened throughout history on a regular basis in our industry. so if you look at the financial system it basically evolved from a very low-tech paper-based system to, and, i might add, private

have consequences for the financial stability of the united states, the determination made by the fdic, the federal reserve, the secretary of the treasury, and the president, and -- so it is -- it's a very deliberative accountable process, and it has an entire mechanism allowing for a variety of different approaches to the firm. using both liquidity measures and other measures to try to contain the problem so it doesn't have the collateral effects we saw in the example of lehman brothers and even going back to ltcm. so that's the way the legislation tries to deal with this issue, and so i would respectfully disagree with joe and his assertion that dodd-frank doesn't address the too big to fail problem. >> well, let me phrase it this way. i want to start with ken this time. you know, one of the things about glass stiegel is that it changed the world. it stayed we're going to split these companies up, and if you're this kind of company, you below re protected but you can't do anything dangerous. changed the incentive structure and worked pretty well for 50 years or so. dodd-frank, seems

. >> you would write in the creature that the fdic is not insurance. what is it? when you over ensure something or if you ensure something to the point there's no risk at all then there's the tendency for the thing you are insuring against to happen. the joke about the store losing money so you ensure for million dollars and it burns down. somebody left the match i guess that is called moral hazard. that is the name of the insurance industry. so, when you have a government agency guaranteeing the banks cannot fail and they are going to take tax payer money and make the banks whole again if they go belly up or something like that you are encouraging banks to make risky investments and risky loans because what have they got to lose they know they are not going to be allowed to suffer the consequences of their own. it doesn't really rate the banks and then a more risky banks don't pay a higher premium than the more conservative banks that pay the same rate. those are conservative and doing the best for their stockholders and investors making less money and reckless b

six megabanks collected $1.2 trillion in federal taxpayer funded support from the treasury, from the fdic, from the federal reserve. two years after we passed the dodd-frank wall street reform act, i supported it because it took important steps, i'm concerned we're not seeing reform nearly sufficient enough reform in the financial sector. as we uncover more and more risky, fraudulent, illegal activities, it seems far too clear and the american people absolutely see this and believe this, that wall street is back to business as usual. since 2010, we've learned about a number of things. i'm just going to rattle off seven or eight significant, serious problems, some illegal, some accusations, some alleging significant systemic problems, all troubling issues that have happened just in the last couple years. investor lawsuits and s.e.c. enforcement actions over mortgage backed securities. municipalities being sold overpriced credit derivatives, bankrupting some of those municipalities. think of the hardship that causes in those communities. the forging of foreclosure documents and mortgage sec

fdic with its 2 q earnings report for major banks. javers in dc for that. >> a fairly rosey picture coming out of the fdic this morning. look at the in your opinions nu see what i mean. earnings up 20.7% compared with the second quarter of 2011. banks earned $34.5 billion. 63% reported higher earnings in the second quarter. noncurrent loan balances declined for the ninth straight quarter. another piece of good news. total loans and leases grew by $102 billion. banks increasing their lending. that's good for the overall economy. the fdic's problem list of banks fell from 772 to 732. carl, some good news. at least on the margins there in a lot of different categories overall from the fdic. back to you. >> eamon, thanks a lot. eamon javers in washington. >>> simon's made his way to post nine. kelly's going to stick around for another hour as well. we should know, we're awaiting the president's remarks on tropical storm isaac at any moment. road map for this hour, rare tea party in the morning. we'll sit down with minnesota congresswoman

liz: we have the fdic and a bunch of regulators which some people around here hate because they make life more difficult to do business but do we need and hooverregulator? >> clear and concise regulation, as a business person, a clear set of rules. and let's be blunt. all the big banks have engaged in a rear guard action, we talk about money being spent. two years after dodd-frank was passed and two thirds of the rules are not in place. you saw and mentioned money market regulation after we bailed out the money markets has been beaten back. the derivatives market was in the shadows all across the market place. we have seen little progress and i think this is the key. in the wake -- most of us learn from consequences of our mistakes. if you are in business and take a big risk and fail you learn -- and in the future in terms of how you deal with risk but these big boys were bailed out and never felt compelled to change. on the economic front they bounced back and the rest of the country struggled. compensation hit record highs on wall street in 2010. on the legal front little in a way

>> day fdic made in attempt to sue if kerry killinger and ahead of the mortgage division and steve portola for $1 billion and they settled out of court for a a fraction at 64 in million in most of that was covered by the end negative insurance paula c. hafts so they paid almost nothing. >> host: if they got away with it. store for those who has shares of sound savings which was merged or their shares worth anything? >> probably not my suspicion is to not waste the brain damage. you'll have to look through the bankruptcy filing. i believe they reached a settlement so shareholders got hardly anything back her carry it back. do think jpmorgan chase got an extraordinary deal? [laughter] with a the wamu assets and was a low-price justified from the associated problems? >> jpmorgan paid 1.9 billion dollars with $307 billion of assets. they got a screaming deal. they thought it was justified for the terrible mortgages. they have not kept jpmorgan from being profitable. the reason it wanted it anyway for the fast branch network especially on the west coast. jpmorgan was really on the east coast. t

you just saw the fdic data come out this morning and the industry saw 1.8% improvement in lending. think it is a, where you're finding it in c and i lending. my concern for the way lending is taking place because interest rates are so artificially low, banks are being forced to take risk they wouldn't be taking otherwise. our case, lending is up 12.5% in the period from this time a year ago. we're real pleased with our loan growth. we're mostly cni bank. we're getting more than our share of cni. david: let me push back, mariner. i thought the purpose of the whole new group of regulations on finances was supposed to prevent banks from taking undue risk. you're saying that is not holding here? >> i'm assuming you're referring to basel? david: talking about bassal? dodd-frank was supposed to prevent some of that from happening. you say it is happening anyway. >> history is any guide for the future we've had 30 plus recessions since the mid 1800s's. we'll have another one. we don't need more regulation. we need political will. tracy: right. >> i think that is the really the biggest iss

matt, the fdic today released a positive banking report for the second quarter citing a rise in theirr problem banks. can we assume, however, that ryan will completely ignore all of this and continue to claim that the country is in a trough? >> i think ryan's going to continue to adopt the attack dog position that he's kind of slipped into comfortably. remember, paul ryan is functioning as mitt romney's beard with conservatives. conservatives are still very distrustful of him. they view mitt as the manchurian candidate who's been the massachusetts moderate sent in to destroy conservatism from within. paul ryan is the real source of their reassurance. the more that he plays the traditional vp attack dog while also providing the conservative credentials to the ticket that excite the batse, he's doing wht they want. >> romney adviser eric fernstrom for what he's qualified to be vice president. >> he not only makes wisconsin achievable for mitt romney, pure politics, everything about him speaks to his middle class values. he went to public university. he had to be a leader in his family a

fdic has gone to $250,000. he talks about medical reform.e elected a governor down here that -- his company backed out been corrupted by the government because it was charging $1.5 billion fines for ripping off the medicaid system. all of these other republicans love to talk about waste and fraud. host: i will give you a chance to respond. you make no bones about your political viewpoints. guest: i am not sure what the question was. was there a question? i am not going to speak to governor scott. i think he has been a very good governor. i thought i heard something about the fdic guarantees being raised under sheila baier. i thought that was inappropriate move to increase the deposit. i do not like bailout. when you are in the middle of a financial crisis, i think small favors and large favors -- we needed to patch up the financial system. i do not see what the big problem is. ronald reagan lowered marginal tax rates from 70% to 28%. he watched one of the greatest economic booms in american history. bill clinton -- i have always felt he was

they are also the one that play -- they had to pay a couple of years ago there fdic insurance premiums. most people do not realize how that works. the little banks can overregulated. they had to pay three years worth the premium up front because fdic was running out of money, and they had to go and rob it. they also have to pay the same amount of money to follow the regulations. it cost my husband's bank a quarter million dollars a year to institute all the regulations that the cowboys in d.c. but thy require. host: let's get a response from cheyenne hopkins, however talk about what you are progressing. guest: she mentioned it was sold as a program for healthy banks. that is how paulson sold it. since we have seen some banks that did take chirrupy fail. however, at first, it was a good thing to take t.a.r.p. it was thought that if he did not take it, maybe you were not healthy. that changed once the restrictions were added on. she talked about the common theme of the divide between small and large banks. small banks feel like they are the cause of the larger banks. there is this consta

fdic has gone to $250,000. he talks about medical reform.d a governor down here that -- his company backed out -- his company got bankrupted by the government because it was charging $1.5 billion fines for ripping off the medicaid system. all of these other republicans love to talk about waste and fraud. host: i will give you a chance to respond. you make no bones about your political viewpoints. guest: i am not sure what the question was. was there a question? i am not going to speak to governor scott. i think he has been a very good governor. about the fdic guarantees being raised under sheila baier. i thought that was inappropriate move to increase the deposit. -- an appropriate move to increase the deposit. i do not like bailout. when you are in the middle of a financial crisis, i think small favors and large favors -- we needed to patch up the financial system. i do not see what the big problem is. ronald reagan lowered marginal tax rates from 70% to 28%. he watched one of the greatest economic booms in american history. bill clinton --

>> i think what you have joe, in the legislation and in the rules at the fdic a the d have put together are the basic outlines of what would happen in the instance of major financial institution whose failure would have financial stability implications. what that basic outline of action is going to be. so if you put title two together with some of the other authorities for instance at the federal reserve and the fdic have you have the basic template for how it's going to happen. >> joe what is your take on the amount of regulation about basically what the government has done in a regulatory framework since the financial crisis? >> well there's a certain fundamental things that happened to to the world of finance and it sort of raises a question in my mind and again i'm speaking personally not for my firm and that is whether or not the creativity and ingenuity and in some cases diabolical nature of certain kinds of individuals that exist in all walks of life can be kept up with by regulators? so, you know impolice it in the word regulation is that somehow there's real regulation going on

we'll speak with phenomenaler fdic undersecretary. >>> welcome back to the program. let's take a look at markets. it's a cautionary environment coming out of asia this morning. the hang seng had its worst day since late july, closing down 1.2% and that's followed through into futures action. the dow jones is implied to opener by six points and one or two for s&p. not a huge side to the downside but not a supportive risk environment overnight. >> european stocks meanwhile are weaker as well. just down about 0.3%. euro stocks up near four of my month highs. >>> moving on, the old gray leader has a new leader, "new york times" is turning to former bbc director mark thompson ening an eight-month search. he announced in march he was leaving bbc after the olympics. he'll start at the times in november. new york times in frankfurt up. i have to say, this a fascinating point. by and large -- i mean, the bbc starts have year, knows exactly what its revenue is. their job is to work out where they spend it. "the new york times" -- >> doesn't have that luxury. >> in a tough mark

the commodities customers for the protection provided to the security's customers and also by the fdic for the bank depositors most of the accounts, and as understand in many there were under $100,000 come so they are small farmers, ranchers and others, so that the amount of protection to provide $100,000 of that hadn't existed that would have permitted us to have paid i think and i'm talking up the top of my head somthing like 98% of all claimants almost immediately that would have been sufficient to cover costs. how feasible that would be and how funded that would be to the industry is a sject for study but that limited amount of coverage as i say in our case would have permitted us to quickly move and cover mot of the deficiencies in the case and a security customers because of the existence of sipa and the sipa protections. in terms of the collection of assets even the moneys and the banks and other depositories throughout he world it's a process of saying the segregated funds because these institutions in many cases all were reluctant to release funds and in some cases said we hav

at 10:00 the fdic releases its quarterly report on u.s. bank earnings. plenty of attention will be on ben bernanke at the end of the week with some expecting the fed chairman to announce a third round of quantitative easing when he speaks at the jackson hole symposium on friday. minutes from the last fed meeting showed policymakers are standing ready from vied new stimulus fairly soon. speak being after bernanke is adam posen who is stepping down from his position. he was with me exclusively ea y earlier. i asked him what steps the central bank should take in september? >> they should be acting in a targeted way. bank of england should be looking at small to medium enterprises. ecb should be looking at sovereign debt. we should be doing quantitative easing. >> our next guest says the markets won't be able to break out of the low volatility until we hear from bernanke and other central bankers at jackson hole. jim, thanks for joining us. of course we know who won't be there now, no mario draghi, none of the ecb governing council will thereabout. how disap

the number of things on the fdic problem list fell to 732 compared to 772 during the first quarter.t is the latest on the fox business network giving you the power to prosper tracy: good news on the housing front. home prices in 20 u.s. cities raised for the fifth straight month in june and showed a year-over-year gain in 2010. according to the case shiller price index, earlier today dagen mcdowell off one of the co-authors of the study if we have seen a bottom. >> i think it's too soon to call it a bottom. but it might as well be. i think some people will be kicking themselves that they didn't buy now. i just can't be sure. that is the problem. too many clouds on the horizon. tracy: are those clouds going to rain on the housing great? grade? joining us now is jeff rogers. integra realty resources. jeff, so glad you are here. there are other issues. for one, the shiller report is only 20 cities. it doesn't include connecticut, which is still struggling. >> that's right. tracy: we are not taking into account all the foreclosed properties that are out there. >> we are not yet. but if

like all types of insurance any such insurance would have to have coverage limits but if the fdic can in insure $4.3 trillion in bank deposits, surely we can insure $190 million in customer segregation cost. congress must also consider enacting new criminal -- why the pfg investigation will result in criminal conviction of probability for a criminal conviction in mf global case is less certain. the lesson of mf global should not be that there are no criminal consequences for swiping customer funds. commerce must consider measures to counteract the risks to customers resulting from the combination of broker-dealer in a single corporate entity perp or great percent of customer segregated property in the annie resides in 10 of these firms. broker-dealers and sickle entities have exposed over $35 billion in commodity cluster property involved in the financial crisis perkovich hungers commerce to consider forcing broker-dealers to split their operation to separate legal entities. at a minimum the unencumbered collateral should have specific insurance coverage. lastly congress must make mor

because i think if the fdic - query came rather than the soldiers and query it might break the deadlock that's created by this perception the soldiers have of asking questions that are politically incorrect will get you fired. you see where i am getting at? >> is you're point that they would be better if that interview hadn't been conducted been conducted by the fbi? >> either that or at least contact the dod and say we have a situation here that involves one of your officers that he's been promoting regularly and it looks like he is an officer in good standing. but an issue has come up in one of our agents - that we will give the ball to you to look at it or whatever because if -- what you hear from people in the dod is as we look back now hassan have all kind of indicators that to medical school that he took these positions and yet nobody said anything. and even you will hear from people over at walter reed that they said we were for getting him out of here and get him someplace else because he was asking all these questions. interviewing soldiers back at the front did you ever consid

he talks about big government except that fdic went from $40,000 to $250,000 over 30 years. he talks about medical reform. we elected governor scott here that his company he ran that got bankrupted by the government because it was charged a $1.5 billion fine for ripping off the medicaid system and kudlow and all of these other republicans that love to talk about waste, fraud, and abuse has nothing to say about him. >> host: giving you a chance to respond. you make no bones about your political view points. >> guest: i'm not sure what the question was. was there a question in there? i'm not going to speak to governor scott's business affairs. he's been a very good governor. i thought i heard about the fdic guarantees being raised under sheila in the financial crisis in 2008 and 2009. i thought that was an appropriate move to increase the deposit. in fact, i'm -- i doamplet like bailouts, but in the middle of crisis, signal savers and large savers, we need it to patch up the financial system if only temporarily. i don't see what the big problem was. ronald reagan lowered margi

the commodities customers for the protection provided to the security's customers and also by the fdic for the bank depositors most of the accounts, and as understand in many there were under $100,000 come so they are small farmers, ranchers and others, so that the amount of protection to provide $100,000 of that hadn't existed that would have permitted us to have paid i think and i'm talking up the top of my head something like 98% of all claimants almost immediately that would have been sufficient to cover costs. how feasible that would be and how funded that would be to the industry is a subject for study but that limited amount of coverage as i say in our case would have permitted us to quickly move and cover most of the deficiencies in the case and a security customers because of the existence of sipa and the sipa protections. in terms of the collection of assets even the moneys and the banks and other depositories throughout the world it's a process of saying the segregated funds because these institutions in many cases all were reluctant to release funds and in some cases said w

women in collision at the various financial-services agency, my friend and colleague, mickey from the fdic, i think he is in the room, we are trying to get a diversity inclusion of both at the cfpb, and we are looking at ways to assess the entities we regulate. and that is going to be about progress. i would encourage you to visit our website, come to our events. we are here to serve the american public and the consumer. one last load, we are hiring at the cfpb. if your interested in during examination of banks, or interested in technology and innovation, there are jobs available now on our website. i would encourage you to check that out. the tech work fellowship program that we are doing actually closes this friday, friday 13. if you are a webbed designer, a graphic designer, i would encourage you to check out that program. you can work anywhere in the country to do this. there's a lot of flexibility. we are very excited about the system we are setting up. with that, i will turn it over to john that. -- to john. gues[applause] >> i will be a very brief. i will follow up with you offline

like all types of insurance any such insurance would have to have coverage limits but if the fdic can in insure $4.3 trillion in bank deposits, surely we can insure $190 million in customer segregation cost. congress must also consider enacting new criminal -- why the pfg investigation will result in criminal conviction of probability for a criminal conviction in mf global case is less certain. the lesson of mf global should not be that there are no criminal consequences for swiping customer funds. commerce must consider measures to counteract the risks to customers resulting from the combination of broker-dealer in a single corporate entity perp or great percent of customer segregated property in the annie resides in 10 of these firms. broker-dealers and sickle entities have exposed over $35 billion in commodity cluster property involved in the financial crisis perkovich hungers commerce to consider forcing broker-dealers to split their operation to separate legal entities. at a minimum the unencumbered collateral should have specific insurance coverage. lastly congress must make mor

to get -- >> think of every banking institution this this country basically being taken over by the fdicld dispute that. >> depositors unable to get their funds for years. it's not even -- it's interesting, but it's so far removed. >> i think in dick's case, not all the banks needed it. we took t.a.r.p. the money never left the the fed. we left $7.5 billion undeposited. the fed paid $460 million worth of dividends then a warrant. we all would have liked to have that investment, but many banks did need it. you look back at the time they put the t.a.r.p., from the day they put it in, the market stabilized from a liquidity point of view and got better. >> thank you. >> thank you. appreciate it. >>> coming up, we've got more from our guest host and ceo, jim roar. roar. i do that with my kids. this roaring. commercial. please. ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ male announcer ] even the planet has an olympic dream. dow is proud to support that dream by helping provide greener, more sustainable

argument and obviously we back our banking system probably more explicitly than anybody else through the fdic the question, those were stability measures that became permanent. >> correct. >> should they have been reversed? taking deposit insurance from 30,000, 100,000 to infinite, those were supposed to be temporary measures to stop bank runs that weren't supposed to become permanent. >> the larger question do we need banks of size and scale. does the competitive argument make any sense and if you were to reduce the size of banks what happens? do they become less competitive and by the way, do we care? what does it do to growth? >> correct. i think the argument that jamie would espouse, as you correctly summarized it, assuming we can put words in his mouth, does have some validity to it. the question is, does it have enough validity, given the cost at which it comes, and i think that's a valid debate that needs to be had. does the world need banks that have trillion-dollar balance sheet or in the case of jp, more than 2 trillion, is that actually something you can manage and therefore is it