he appointed paul volcker to head fed knowing because volker told him that he was going to choke the economy, squeeze inflation out, raise interest rates, and a lead to higher unemployment but eventually lower inflation. the meeting that they had in oval office is really a classic. volker is full taller than carter 6'7" a giant man, bald, glasses scowl and carter describes vividly in the book how -- he was over a couch and in oval office carter said i felt like he was in a interviewing me for a job the not other way around but he did appoint him and let him do his job and supported that tough monetary policy without any complaint. even during an election year. he was not the ultimate beneficiary because the tough medicine only worked during the reagan administration. and for the nation thereafter and this is em l blemmatic of so much of what carter did, tough decisions which had payoffs only later. his foreign policy achievements were even more significant. camp david will stand as landmark of personal dloam city he poured over intelligence reports to understand. he took them to gett

he picked paul volcker to head the federal reserve.don't think he anticipated how aggressive he would be. he would raise interest rate as full points at a time. forget the quarter point. >> he did. and i think -- >> neil: did he anticipate that, knowing that would hurt him? >> yes. one of the great things -- we inherited high inflation. it got worse in our administration. with the iranian revolution and the cut off in oil, it went into the stratosphere. he said to it's point blank, neil, i've tried everything else, wage and price guidelines, anti-inflation. i'm going into an election to take the tough medicine that paul volcker has told me that he's going to do, which is tighten the money supply, squeeze inflation out, raise unemployment, raise interest rates and carter said, i know this may effect my re-election but i don't want my legacy to be this high inflation and i'm willing to lose if this is what it means. the ultimate beneficiary of that two years later was ronald reagan and the country. but carter was willing to take that and

major deregulation of transportation, communication and banking and most importantly appointed paul volcker one of the most committed anti-inflation fighters to chairmanshipg of the federal reserve. stu eisenstadt succeeds in offering a balanced view of the carter presidency. splendid read. david h ignatius said this and said this and i know this will come out. called carter a smart come indecent but unlucky man in the white house. i was deputy secretary of the cabinet and i had a second row seat the first half of the carter presidency appeared at the white house bid of 1978 but stayed in touch. my late husband, sidney and i met in the roosevelt room and president carter present so with over 30 years of marriage. sidney served for a time on the carter center which has played a big role in the carter post president he and i will just note the post-presidency is not covered in the book but it's lasted for decades and so when you read the book about the post-presidency comments got to to be minimum 8000 pages. this morning, stu will get 15 minutes of opening comments followed by her panel, whi

the rule is named after the former us federal reserve chairman paul volcker, and what it did was it andts to buy or trade risky securities. why? the idea is that in using customer deposits to buy things like credit defaults during the run—up to the financial crisis, the banks were making risky decisions that then necessitated a us government bailout. but on wednesday the us federal reserve will hear arguments that the volcker rule went too far. so investors will be keen to see if the federal reserve buys this argument, and of course they will be watching shares of bank companies that could be impacted by any relaxation of those regulations. these are banks, of course, like goldman sachs, jp morgan and citigroup. kim gittleson there. joining us is mike amey, managing director and portfolio manager at pimco. as we have seen, not a straightforward picture in europe, but overnight in asia, yesterday in europe, all reacting strongly to what is happening in italy, so let's look at the huge debt that italy has, alex pose—gil as the rest of the world? so the issue with italy, as you say, their

they're set to make changes to the volcker rule which was named after former federal reserve chair paul volcker, created by regulators, nearly 4 1/2 years ago, in essence to rein in banks' risky trading which many believe in part sparked the financial crisis. the new one is going to cut compliance costs, not handing the banks a full deck, but specifically the problem that banks had with the volcker rule is prohibited them from making certain investments with their own accounts, their own money and limited dealings with hedge funds and private equity funds. how ironic is it, then, that there may be a too big to fail situation possibly brewing right now? kristina partsinevelos in the newsroom. and kristina, the bank that is showing some real signs of stress at the moment. what is it? what's going on? >> deutsche bank, the european bank from germany, and there are a lot of warning signs regarding this bank. first off, you have a brand-new ceo christian sewing speaking to investors, how the company is going to organize, the fourth time they're organizing in three years. they are laying off 7,000 em

paul volcker. >> volcker came in and saved things, but created havoc in the markets. >> this is differente don't have jimmy carter in the white house, et cetera it's a different mode. right now it's not the 2% inflationary target, it's putting as many nuts in the tree as i can for when the winter comes. >> how does it work in the room? does everybody go around and say this is what i think >> you start out with the staff briefing you do the domestic economy. the international economy. markets. >> all by the staff? >> yeah. conglomeration of staff. >> you ask questions >> you start with the desk report first you instruct the new york fed desk as a committee what to do in the interim they give their report you have the other reports >> as they're reporting do you ask questions? >> sure. i did. >> then what happens >> then you have the go-around for the economy. the presidents go first. the governors go second with one exception. the second most powerful person -- >> are you reading a script? >> depends on the person i never did. matter of style. the second to last to go is the head of the ne

streetet reform and consumer protection act and was named after former federal reserve chairman paul volckertering down the rule would allow wall street's giant banks to again engage in a wide range of risky trading, using customers' own money. meanwhile, on monday, president trump nullified rules aimed at preventing discrimination in auto lending. and today, the house is slated to vote on legislation that would roll back parts of the dodd-frank act for thousands of smaller to mid-sized banks. the united states and china have agreed to hold further talks as the world's two largest economies step back from the brink of a global trade war. over the weekend, treasury secretary steven mnuchin said the threatened trade war would be put on hold, backing the u.s. away from opposing tariffs on $50 billion of china's exportss to thehe united states while cha appears to have committed to importing more energrgy and agricultural commodities from the united states. on hawaii's big island, the kilauea volcano is continuing to erupt, spewing plumes of ash and lava. workers are rushing to shut down a nearb

this is about, one the reasons that it was paul volcker, former legendary fed chair who believed that shouldn't be playing around with their cash on hand because if they do that, they can go under and that is what led to the financial crisis. now just so you know, the volcker rule, proprietary trading did not lead to the financial crisis. the financial crisis occurred because banks underwrote tens of gazillion dollars -- trish: for a whole host of reasons. >> but this is the main reason, they underwrote all this debt that became worthless during the housing crisis, okay? it was on their books. they couldn't sell it. when they marked it to market, they became insolvent. i will say one other thing, changes to the volcker rule are minuscule. this is really, i know the trump administration is trying to take, do victory laps they have rewrote this thing in major way. they really haven't. if you read the rule, yes, banks, certain small banks are exempted, thank god. they don't do any proprietary trading anyway. if you're a small bank that takes a lot of risk, the fed can still have authorit

steve, thank you paul volcker himself has put out a statement to say he thinks the principles will be upheld. >> i think some of these changes will lower the costs for the bigger investment banks not to have to define what each type of trade is it will be interesting to see precisely what mr. quarles has to say with steve. joining us now, michael santoli and kenny polcari. yesterday morning, we saw a big selloff, of course, at that time was that sort of predictable and talk us through kind of what we've seen since >> it is kind of predictable we woke up monday, we were close. tuesday morning after the european markets had a chance to kind of react to what had happened in italy over the weekend. we got hit with it yesterday morning. so there was this weakness certainly permeating across europe and the weakness in the futures here typically happens, you get that big headline everyone thought the italian thing wouldn't be a big deal after the news came out, it was a bigger deal than they thought. and wasn't to be greece relived. and what happens with that, in the very 21st century market