but now you basically know what the volcker rule is and a little bit of trivia it's named after paul volcker who is behind it he's a former federal reserve chairman he has championed this and incidentally he does need for an interview once on the grounds that he was too tall and i was too small which is a great story to leave you on before we go to break still ahead can you hear me now good no thanks to government regulations that will tell you why and first your closing market numbers. we just put a picture of me when i was like nine years old until she told the truth. i have a confession i am a total ghetto princess i love grabbing hip hop is excellent and pretty sure. i do it's kind of the gesture that. i'm very proud of the role that you just played. you know sometimes you see the story and. thank you understand it and then something else. and realize everything. i'm charged welcome is a big issue. what drives the world the fear mongering used by politicians who makes decisions to break through. who can you trust no one. with a global missionary zeal where we had a state controlled capit

[laughter] i have been 88 on the wrong side of that big dean paul volcker none of you remember him. [laughter] it was machine of the year. you can tell the first 10 you meet steve jobs that there is something compelling about him. >>host: flash for 20 years 2004. he gets in touch with us be maggie gives me a call. we talked a little while. do want to speak here he said no i want to take a walk. after while he says why don't you do a biography of me? i was just finishing albert einstein and i thought okay. franklin, einstein, as steve [laughter] but i said you are a great subject but let's wait 30 years until you retire. not until 2009 when he had his liver transplant on a medical leave that is on again he was fighting cancer and he transformed with his team, of a

. >> and even paul volcker, krystal, is saying the volcker rule is too complicated -- they turned a ruleawyers for the banks occupied for years. but krystal, ask your question. >> yeah. i want to thank you first, michael, for being out there and putting your voice out there, which i think is really powerful. and i wanted to ask you about something that is quite timely. congress established the consumer financial protection bureau and elizabeth warren spent a lot of time setting it up. and now republicans have blocked the president's nominee, richard cordray, to that agency, and there's some talk of potentially the president forcing a recess appointment in january. i just wanted to hear your perspective on how critical the work of that agency is. is that an important part of the picture when you're talking about things like simplifying credit card applications, mortgage applications, providing financial education, et cetera. >> i think it's important, but i think that, honestly, the threats to the system are much broader and in some ways, they're much more hidden. i think that right now t

years in we would have a meaningful change, you know, i heard -- i had the opportunity to hear paul volckerchairman of the federal reserve speak this morning and that was the line he was saying wch are three years in and some of it is taking time and not doing policies that retard the process and slow it down. >> good information. good information. thank you lex haris thing. we threw the occupy thing on you at the last minute since it was developing and you did a great job. we appreciate it. we will follow the developments at mcpherson square park. i'm just kind of listening to see what is going on. mcpherson square park where they put up a permanent struf. they have been ordered to take it down. they are defying police's orders and they are chanting, stay, stay, stay. we will stay with it. more after the break. re you go. driver's license. past five years' tax returns. high school report cards. and i'm gonna need to see a receipt for that watch you're wearing. you know, you really should provide us with a checklist of documents we're gonna need up front. who do you think i am? quicken loan

paul volcker clamping down on inflation. the do you was under 1200, unemployment was over 12%. if hi stood there that day and said well 120 years from now the do you will be over 10,000, unemployment will be low, we'll be having a great boom, everybody will have a home. the people would have yanked me off the camera. the fact is we never know what next positive uptrend will come. no one predicted that technology revolution that created so many new jobs. america has been through these cycles before. early in our history the frontier closed. oh my goodness t was the end of america. or the agrarian revolution, we didn't need farmers on the land, or the industrial revolution. we change. and the question now is not whether we should validate what's going on. obviously there's tremendous pain. the question is what is the way out and up? is it to create a stagnant economy? we've had years and years of both republican and democratic governments spending trillions of dollars and proving they could get us not very far or is there another way to create the growth and the opportunity that

paul volcker tightened down because he wanted to cure inflation. unemployment was in double digits for almost three years, but when we came out of that recession, we didn't have china just off our bow. we had oil at about $20 a barrel at that time. we didn't have india and brazil and russia and the emerging markets beginning compete with us. moreover, we had a manufacturing base in this country. because it had not yet completely shifted overseas. so there are objective differences now and we have to be aware of that as we go into in new century. that's what i talk about in "the time of our lives." i address a lot of it to my generation, i'm 71 years old, i'm not a boomer, i was born in 1940, but i've been the beneficiary of the greatest generation. i look at my grandchildren and i think, what are they going to say about us in 40 years or 50 years? i know what we say about our parents, what they did for us. what should we be doing now to make sure that they get an even crack at having some of the life that we've had. >> there's something that you re

he gathers around him in the fall of '07 and the spring of '08 an ecumenical team led by paul volcker, democrats and republicans, bill donaldson, the sec chief under bush was there, robert rice who, of course, is one of your favorites here. their all together. robert wolf, the ubs wall street titan. they're together because they're afraid. people are feeling the shudders on the landscape, they're feeling it shake. and obama right from the start is saying the things that almost no one else is saying, we need to reform the financial capital, we need to reform the system of credit. we need to make it work for the american economy and the american people rather than in so many ways against it. to kill off the volatility that we feel even now as we run up and down these parables of fear just in the last few weeks. he got it. and volcker is really his guide. now, volcker is in the book, and some people say he's the hero of the book. i'm not big on heros or villains, you know? the reporting is the reporting. but volcker speaks with force in this book. we had many, many lunches, we talked acr

and it was only when paul volcker took responsibility for the federal reserve in 1979 that we got inflation under control. i say the other thing we learned is that there's a whole group of us who will stand at the barricades to prevent wage and price controls never happening again in peacetime in the united states. [applause] >> as ann pointed out, when george schultz came to the labor department, he had as a model for secretary of labor mitchell's performance under the eisenhower administration. and under the eisenhower administration, the building trade unions were sympathetic, almost overtly sympathetic to the republicans in many respects. and the afl-cio was not quite as determinedly part of the democratic party constituency as it became more and more, as time went on. so his model for labor secretary was less hostile to trade unions as was true of some, not all, not ann, but some who followed, under other republican presidents. so he had a balanced group of people in the department. one, bill usrey came from the machinist union. and the rest of us were -- none of us were perceived as h

i testified with paul volcker. the statute was the creation of this congress. from our perspective we wanted to make sure and industry was keen for us to make sure that we excluded certain things from the provisions. how that gets worked through in the rulemaking is not for the treasury to participate in. out of deference to governor tarullo not have a hard time imagining this will have a particularly important effect when all is said and done. overall debt markets and liquidity. >> with respect to liquidity for other instruments more generally, i think a lot of this will depend on the concept of trying to adjust metrics and oversight to the relative illiquidity of the markets with particular assets. so for example in the exceptions for underwriting and marketmaking, it will be appropriate to evaluate what a firm does differently if it is making a market in a relatively less liquid assets which for example to be a bond in a smaller firm, as opposed to making a market in a fortune 500 equity traded on the new york stock exchange. so we will try to minimize the e

. -- on behalf of paul volcker. we wanted to make sure we excluded certain things from the provisions. how that gives workers through is not for the treasury to participate in, but i have a hard time imagining this is going to have a particularly important affect. >> with respect to liquidity through other instruments, a lot of this will depend on the efficacy of one of the concepts, which is to try to adjust the oversight for overall liquidity of articular assets, so in an exception for underwriting and market making, it will be to evaluate what affirmed those we as what -- what a fir dom does opposed to making a market in 1400 -- fortune 500 equities, so we will try to minimize the effect on liquidity in markets by implementing market making and underwriting sections as sensibly as we can, taking into account. five or six years ago, how the nature may have changed. it may be that a bunch of them may migrate to different firms. >> senator hagen? >> in your opening testimony, he devoted much of your opening to dodd-

[laughter] i have been 88 on the wrong side of that big dean paul volcker none of you remember him. [laughter] it was machine of the year. you can tell the first 10 you meet steve jobs that there is something compelling about him. >>host: flash for 20 years 2004. he gets in touch with us be maggie gives me a call. we talked a little while. do want to speak here he said no i want to take a walk. after while he says why don't you do a biography of me? i was just finishing albert einstein and i thought okay. franklin, einstein, as steve [laughter] but i said you are a great subject but let's wait 30 years until you retire. not until 2009 when he had his liver transplant on a medical leave that is on again he was fighting cancer and he transformed with his team, of a wide variety of industries furthest home computing, personal computing, but by 2000 i had transformed the music industry, itunes, ipod, the religious and two music, a phone industry, a publishing, a tablet computing so then i said okay. this is too good to pass up. >> do you have a theory going into this? >> i had a theory

[laughter] i, of course, was an idiot on the wrong side of that voting for paul volcker, and none of you remember who he was -- [laughter] we 4 a machine of the -- had a machine of the year, but you could tell the first time you met steve jobs that there was something compelling about him. >> flash forward 24 years, and it's 2004, and he gets in touch with you. >> he calls me, i'm with the aspen institute, and he said i want to take a walk with you. he says why don't you do a biography of me? he sort of suggested it. i had done ben franklin, finishing up albert einstein so i thought, okay, franklin, einstein, steve -- >> i'm sure that was on his mind. >> i admit, i said, you know, you're a really, really great subject, but let's wait 30 years until you retire. it was not until 2009 when he had the liver transplant and had a medical leave that it sunk in he was fighting cancer, that he transformed with his team a wide variety of industries with first home and personal computing, but by 2009, transformed the music industry with itunes and the ipod, the way we listen to music, the phone