we work closely with the fsoc to look for new problems to see where there might be -- the next crisis might come from and take steps to provide a warning so we can collectively address those problems. that is the first part which is to have a macro approach which is looking at the system as a whole, try to identify gaps and weaknesses and fix those as much as possible. we know perfectly well that we will not be able to identify every problem that comes along. the issues are very complex. historically, it just happens that very often need the private or public sector identifies the problem until it is upon us. the second part of the strategy is to make the system itself as resilient as possible. whatever happens, even if we do not identify or prevent it, the system will be stronger and able to survive and continue to provide credit, even in the face of a shock. there are many aspects of that. one example would be the new capital standards that had been agreed upon by not just the united states but essentially all the major countries in the world. so-called basel 3 standard that would i

if, in fact, the fsoc, has you point out, has called for greater government involvement. i appreciate your response, but what has been the stumbling block to prevent dealing with the intraday-trading issue? mr. wolf has been quite specific that's still a huge problem. second it was pointed out that it's been moved back to 3:30, every day you're rolling the dice in some respects. >> i would absolutely reiterate what mr. eichner said we all need to work in concert, and i believe the fed has provided great leadership for this. our part of it that has provided a stumbling block is we really are responsible to get a technology platform to enable simultaneously -- a simultaneous settlement between new and expiring trades, and we are working on that right now. so we can provide a platform so that this all happens much more efficiently. >> would it be helpful if you were -- well, helpful at least to justify the funding, if you were sort of required at a certain time, certain to do it. is that an issue? >> we have actually reduced the time already. we were originally projecting to

we work closely with the fsoc to look for new problems to see where there might be -- the next crisis might come from and take steps to provide a warning so we can collectively address those problems. that is the first part which is to have a macro approach which is looking at the system as a whole, try to identify gaps and weaknesses and fix those as much as possible. we know perfectly well that we will not be able to identify every problem that comes along. the issues are very complex. historically, it just happens that very often need the private or public sector identifies the problem until it is upon us. the second part of the strategy is to make the system itself as resilient as possible. whatever happens, even if we do not identify or prevent it, the system will be stronger and able to survive and continue to provide credit, even in the face of a shock. there are many aspects of that. one example would be the new capital standards that had been agreed upon by not just the united states but essentially all the major countries in the world. so-called basel 3 standard that would i

we work closely with the fsoc look for new problems, to try to see where there might be a next crisis coming from and take steps to provide a warning so we can collectively address those problems. that is the first part, which is to have a macro credential approach, which is looking at the system as a whole, trying to identify gaps and weaknesses and fix those if possible. we know perfectly well that we will not be able to identify every problem that comes along. the issues are very complex, and historically, it happens that very often that either the private sector or the public sector does not identify the problem. the strategy is to make the system itself as a resilient as problem. so what ever happens, even if we did not identify its or prevent it, the system will be stronger and able to survive and continue to provide credits even in the face of a shock. there are many aspects of that. one example would be the new capital standards that have been agreed upon by not just the united states, but he essentially all the major countries in the world. the so-called basel 3 capital stand

i think it will be interesting to hear what's talked about at the next fsoc meeting.that but it will certainly be a subject of conversation because all of those regulate orz involved in that, many focused on money market fund reform. >> hard to believe we're talking about this so long after the fact. thanks a lot, mary, mary thompson at hq. hop over to the cme, rick santelli grave us a preview before the break what he will talk about. i had a feeling it might involve what bullard told squawk. hey, rick. >> hi, carl. here is the question. i am not sure anybody can answer it and it is couched in humor but just a bit. is the fed apolitical or is the fed a lot political? well, you know, in mid-july and remember, november 6th, november 6th is the election. most politicians on either side of the aisle and even the middle of the road aisle if you want to count that as a political position, they really don't want to give you too much because they want to hold back a bit. the more things you say, the more ways you can get penned in by the other side. it seems as though in mid-

known around here as fsoc which consistencies of ten major regulators as well as the federal reservevotes including state and local and state regulators. job is to look at the system as a whole, to try to identify problems to see if there are risks that may threaten the system, weaknds in the structure of the system, are there gaps in regulation that need to be addressed? the federal reserve has the own office of financial stability which we created since the crisis which has a similar function to try to monitor the whole system to identify problems that might be arising. and we work closely with the fsoc to look for new problems to try to see where there might be next crisis might be coming from. and take steps to at least to provide a warning so that we can collectively address those problems. so that's the first part, which is to have a macroapproach which is looking at the system as a whole trying to identify gaps and weaknesses and fix those, if possible. now, we know perfectly women that we won't be able to identify every problem that comes along. the issues are very complex, a

capitol hill and you have to talk to other policy makers and you're part of -- he is part of the new fsocial stability oversight council. by definition he is part of the inside the beltway political establishment even if he tries not to be directly political on being conservative or liberal in any given moment. he saw us interact with everyone and therefore he has to as both a bank regulator and a monetary policy maker discuss things with politicians and if politicians make decisions based on the good of the country or for a variety of other reasons where as the chairman, you know, he works on his dual mandate and i think they have been pretty consistent in discussing the dual mandate and how it works, and he has been very honest. look, monetary policy has its limits. he said it today in his speech. it can help housing. it can't help fiscal and it can't help financial risk taking. >> it is an important day for the markets and good to have you on the program. thank you for joining us from credit suisse. we should note the dow is now up 88 points. the losses that we incurred have been made

if, in fact, the fsoc, has you point out, has called for greater government involvement. i appreciate your response, but what has been the stumbling block to prevent dealing with the intraday-trading issue? mr. wolf has been quite specific that's still a huge problem. second, it was pointed out that it's been moved back to 3:30, every day you're rolling the dice in some respects. >> i would absolutely reiterate what mr. eichner said we all need to work in concert, and i believe the fed has provided great leadership for this. our part of it that has provided a stumbling block is we really are responsible to get a technology platform to enable simultaneously -- a simultaneous settlement between new and expiring trades, and we are working on that right now. so we can provide a platform so that this all happens much more efficiently. >> would it be helpful if you were -- well, helpful at least to justify the funding, if you were sort of required at a certain time, certain to do it. is that an issue? >> we have actually reduced the time already. we were originally projecting t