the none financial users are out of clearing. as chairman dodd put out of his letter, the margin requirement. we are taking the intent of congress that the financial system about 90% of the transactions are about financials and financials. >> i discussed the importance of dmroeb al standards to prevent form shopping. you have taken their approach. you are now going to lock at what we are doing. what kind of effort will it take to harmonize these things. what implications will kra have on our competitiveness. >> after three days overseas, i am very optimistic. aligning early. financial companies would have toous the clearing house. i encourage you to keep an eye out we are taking it to heart. congress has left us to discretion, we want to harmonizing where we think the europeans will end up with this we need to be realistic to that are you, are they moving sufficientish enterally. there is now a larger focus on the common equity as the source. there's a very rye stricted use of other assets. we limited some type of capital. we had made substantial process we all worked together in the agreement. >> chairman dodd with you as well. >> the fact that we moved

in 2008, the financial system failed. the perspective i bring as a result of the failures, many of the public is still suffering. i think it is an opportunity for us the financial system should be a play where investors and savers can get a return on their money the financial system should be a place where people can henl their risk. one of the challenges for this council and the american public is the number consequented. some people have come to believe taxpayers stand behind these institutions it's unlikely they we will never see a financial institution fail again. it's important that given that challenge that the taxpayers are not forced to stand behind these institutions i think the most important things we do is make sure the public doesn't bare risk and that investors and small businesses come to think the system works for them. >> the oversight council is tasked with identifying int intersystems. bringing together these regulators an important tool for addressing the problems of too big to fail new reporting by pri

to take back these bad mortgages may be at odds with its mission to ensure the stability of the financial system so they're basically saying that the the entire financial system has been rigged to explode at the least amount of accountability by the bankers and so therefore the fed and no politician for that matter can ever operate on behalf of the population because it is literally rigged to blow this financial system and the wall street bankers contain can manipulate anything now how is that different than suicide bombers i mean these are suicide bankers who say they're rigged to blow they say give us more money or we're going to blow up the system now how assange paulson jamie diamond lloyd blankfein how is it different than some guy in a cafe and tell of the strap of some c. four who's going to blow himself up for his ideological cause these guys are blowing themselves up their banks are suicide bankers and they're threatening the global economy in the u.s. economy therefore they qualify as terrorists and i say this not as a rhetorical device but as a statement of fact there are as time maga

the 1930s. and it makes a lot of fundamental changes in our financial system. o name just a few of them, it creates a financial stability oversight council which the first meeting is tomorrow by the way, which brings together the heads of all the regulatory agencies and says let's all work together to see if we can identify any risks that might be arising in our financial system. so one of the problems that happened before the recent crisis was that everybody has their own little responsibilities but there wasn't really anybody in charge of looking at the system as a whole and what the, what this legislation does is greatly strengthens the provisions to require regulators not just to look at their individual-- but to look at the whole financial system and try to identify risks that might be rising as the economy changes in the financial system changes so that i itself is a major change. in addition, the dodd-frank acts closes a lot of gaps that existed. we were just talking about the louts. aig, which took important steps today to begin to pay back the governmen

the tables against ordinary people in their financial dealings. it was a tough fight. the special interests poured millions into a lobbying campaign to prevent us from reforming the system, a system that worked a lot better for them than for middle class families. some in the financial industry were eager to protect a status quo that basically allowed them to play by their own rules. and these interests held common cause with republican leaders in washington who were looking to score a political victory in an election year. but their efforts failed. and we succeeded in passing reform in the hopes of ensuring that we never again face a crisis like the one we've been through -- a crisis that unleashed an economic downturn as deep as any since the great depression. even today, we are still digging out of the damage it unleashed on the economy. millions of people are still out of work. millions of families are still hurting. we're also seeing the reverberations of this crisis with the rise in foreclosures. and recently, we've seen problems in foreclosure proceedings -- mistakes that have led to disruptions in the housing markets. this is only one more piece of evidence as t

be with you. >> susie: so it looks like the fed is going to go ahead to add more money into the financial system come november. six to nine months after that, will we be saying that the at that time gee paid off? >> well, i think we will, susie, although the benefits to quantitative easing are probably going to be pretty limited. and that's because the transmission mechanism and monetary policy is not functioning as well as it should be. in your earlier piece you heard susan wachter talk about our housing finance system that's not functioning well. and that's one of the key reasons that the benefits are likely to be limited. there is one channel, there is one channel through which policy could have a boost though. and that is the global or international channel. as the dollar weakens in foreign exchange markets, and perhaps as other central banks decide also to adopt a more accomodative policy, that could be a boost forth u.s. economy. >> but going back to the fed, are you saying that this strategy then will accomplish little and if so, what are the alternatives it to get the economy, u.s. econo

has drawn a warning from the international monetary fund. >> the key message of this global financial stability report is -- the financial system remains the achilles' heel of the economic recovery. much work still needs to be done to ensure global financial stability. >> the imf has trimmed from $3.30 trillion to $3.20 trillion, making note that more bank debt needs to be rolled over to keep banks financed. the issue of debts was foremost on the line to ben bernanke. this week he told a group of students that something needs to be done to reduce the deficit. >> the threat to our economy is real and growing, which should be sufficient reason for fiscal policy makers to put in place a credible plan for bringing down deficits to sustainable levels. >> with america's top banker worried about the national debt, the international monetary fund has published its latest outlook. one of the things that we will be looking at is whether growth has been sacrificed as governments rushed to slash spending. >> let's talk about the big football, soccer story of the day. the liverpool team is set to be sold to the owner of the boston red sox.

i do not believe that's the standard to which we should hold our financial system. they were creating products that they were selling into the marketplace. they clearly turned out to be tragically deficient products. now we have uncovered information, not just by the way in the recent of racially put out, but information we found at citigroup where people were telling citigroup within citigroup that 50% of these loans did not meet the standards but lenders said they did. those were not exactly gold standards for lending. clearly there was involvement and people either knew and did not care or did not know and did not care to know. >> of all of the people and companies you have interviewed and inspected in the past year, does anyone or to stand out for more culpable to causing the crisis than the other? >> what i say we will let the facts speak for themselves, let me be clear -- i don't want to get ahead of the deliberations are members. we will have an assessment of what are wrong, culpability on the private sector side and among regulators and policy makers. i am no

reminded of and some new lessons and i think in terms of new lessons in the volatility of the financial system russia needs to invest much more in in addressing the keep on a bit of just a very large external to the lack of transparency in the financial system we knew that there was a problem but we were reminded on how big a problem. in terms of the the old lesson is about what levers are vying for building for activity the big problem in the russia is that there's not enough middle size for that's what i think mourning the patient of the problems is going to be a lack of competition the problems of the business environment and the very strong regional variation in business environment. all one company that spends strongly on in the vacation as russia's largest independent will produce a look well to its aims to triple the amount of oil that it produces using high technology morkel of what it would produce around twenty million tons of four with the help of new technology i would goes to produce fifty sixty million tonnes that means billions investment that we call on spends more innovation t

reminded of and some new there since i think that in terms of new lessons in the vulnerability of the financial system russia needs to invest much more in phoenix addressing the key vulnerabilities the very large issue on the left the lack of transparency in the financial system we knew that there was a problem but you're reminded on how big a problem. in terms of the the old messenger is about diversifying billing for t.v. the big big problem in russia is that there's not enough middle size for that's what it is mourning the patient all the problems and you call it the lack of competition the problems of the business environment and the very strong regional variation in business environment the russian government is offering subsidies to boost in the station but one technology investor told r.t. that what companies really neat is simply less regulation i think that the most important is in the burbs not to create the right incentives or moving to the burbs for example in everything which is connected with the globalization of the russian and i wish to cultural industry are more in. the customs drawn

some old lessons that we need to be reminded of in some new system and i think that in terms of new lessons it's the volatility of the financial system russia needs to invest much more in in the addressing we keep on the bit of just a very large scale in the with the lack of transparency in the financial system we knew that there was a problem but we were reminded of a whole big problem here is that the terms of the the old testament is about to diversify and really for activity the big problem in the russia is that there's not enough middle size for that's what it is mourning the patient all the problems of the people of the lack of competition the problems of the business environment and the very strong regional variation in business environment the right. time to have a quick look at how the markets up fairing of the south high gold prices triggered a rally in mining shares in london driving the street to a second day of gains for the tanto and to anglo american off more than three percent and. is doing more than four percent per share whereas rose three and a half percent after pushing a one point three percent increase in

reminded of and some new lessons and i think that in terms of new lessons in the volatility of the financial system russia needs to invest much more in a new addressing the keep on the bit of used a very large internal to the lack of transparency in the financial system we knew that there was a problem but we were reminded on how big a problem here. in terms of the the oldest and it is about diversifying building for activity the big problem in the russia is that there's not enough middle size for that's what it's more an indication of the problems of the cold and the lack of competition the problems of the business environment and the very strong regional variation in business environment. now to find out what's the latest of the four are now joined by a correspondent shot at loma. so that's one of the ongoing discussions at the fire that there should be more money allocated to improving education so what other views on that issue. that's right created as well as education that's one of the key factors that has been put up for discussion here alongside other issues such as technology and also scie

so it was a grave moment of peril for the american economy, for the global financial system. and we came into that crisis without the basic arsenal of tools countries need to put out a financial fire to stabilize a run on a financial system. to make sure people, individuals, are comfortable keeping their money in banks. that banks can lend so businesses can borrow. you know, credit is the oxygen economies depend on. without it economies can't function. and we came into the crisis without those basic tools. in recognition of that and the severity of the crisis opinion-- and he did the necessary thing. he went to congress and asked them for authority to fix this problem. >> rose: this was secretary paulson. >> and paulson... >> rose: and bernanke and you then head of the new york fed. >> we did. and with that authority the government then went and did two very important things which is to put put a substantial amount of capital, financial resources, into the banking system to stabilize the run on the system. and provide a guaranty through the f.d.i.c. so that banks were able to

in our financial system, and to frankly how the profit will use the financial system. the government and the regulatory agencies. you know, i guess i would say, there are a lot of businesses as small banks and other types of businesses that could survive if the government backs them up until they get in their feet. if we embrace that as a policy, that's our market base system and that's a road i don't think we should go down >> there's a lot of anger. do you think wall street is to blame for this? do you think it's helpful to have it sort of antagonistic relationship between washington and the banks for better or worse really drive the financials? >> i think you should be careful of painting everybody with a broad brush. there are small banks that did high risk taking not smart things and other banks that manage well. painting with the same brush is not helpful. in terms of customers of financial institutions, they should decide for themselves. that's one of reasons why it's important to have a diverse banking sector with smaller institutions so people have a choice. an

why would the government allow our financial system to reverse the culture of investment and the hard work of investment and indulge the ongoing extraction that we're all living through? >> well, over the last couple of decades, particularly in the last ten years, the government de-supervised the financial sector and essentially turned it over to the perpetrators of one of the largest, the largest swindle in human history. which was the -- the mortgage originations and securitization that led to the collapse of the financial system in 2008. and so we do not have these days a financial system that serves the public purposes for which banks are chartered. that is to say, to support small business, to support the investment projects of larger businesses to provide jobs. and until we create for ourselves a functioning financial system that can take up this responsibility, we're not going to solve many other problems including the budget deficits that many people are worri worried. >> what do you think is the biggest lie or biggest misunderstanding that dominates leadership in the democrat

you are saying that he is just completely you know doesn't understand anything much about the financial system was the knowledge and know and denial of what's happening on the identity or are you even aware that it's a method by all the european leaders that in may two thousand and ten on that one weekend they had already they were about the the euro and was about to fall apart and i even aware that in two thousand and eight the whole financial system they have admitted in the u.k. and germany and then the us the banks were about to close ok what are you learning how to jump in here and as to how to do here and i'm sorry we didn't get your reply will do this again gentlemen many thanks to my guests today in new york here in moscow and in hong kong and thanks to our viewers for watching a few darkie see you next time and remember cross talk rules. if you. want to.

you know doesn't understand anything much about the financial system was the norwegian no and deny what's happening on the identity or are you even aware that it's estimated by all the european leaders that in may two thousand and ten on that one weekend they had already they were about to bitch the euro was about to fall apart and i even aware that in two thousand a the whole financial system they have admitted in the u.k. and germany and then the us that the banks were about to close ok what are you learning how to jump in here on is about to happen to me here and i'm sorry you didn't get a reply i will do this again gentlemen many thanks to my guests today in new york here in moscow and in hong kong and thanks to our viewers for watching your community see you next time and remember cross talk rules. and. stick. to the. wealthy british style sun it's time to rise on. the. market and. find out what's really happening to the global economy for no holds barred look at the global financial headlines tune in to gaza reports on our team.

here are saying that he is just completely you know doesn't understand anything much about the financial system was the norwegian no and then i know what's happening on the identity or are you even aware that it's a method by all the european leaders that in may two thousand and ten on that one weekend they had already they were about to the euro was about to fall apart or are you even aware that in two thousand a the whole financial system they have admitted in the u.k. and germany and then the us that the banks were about to close ok they want to learn how to jump in here and there's very little to do here and i'm sorry you didn't get your reply we'll do this again gentlemen many thanks to my guests today in new york here in moscow and in hong kong and thanks to our viewers for watching your community so you next time and remember crosstalk rules. and. showbiz and sixteen it's absolutely spritzed teach high production success it's grass so. all of this is a way to try to solve these people's attention by using take.

the 1930s. and it makes a lot of fundamental changes in our financial system. to name just a few of them, it creates a financial stability oversight council which the first meeting is tomorrow by the way, which brings together the heads of all the regulatory agencies and says let's all work together to see if we can identify any risks that might be arising in our financial system. so one of the problems that happened before the recent crisis was that everybody has their own little responsibilities but there wasn't really anybody in charge of looking at the system as a whe and what the, what this legislation does is greatly strengthens the provisions to require regulators ot just to look at their individual-- but to look at the whole financial system and try to identify risks that might be rising as the economy changes in the financial system changes so that i itself is a major change. in addition, the dodd-frank acts closes a lot of gaps that existed. we were just talking about the louts. aig, which took important steps today to begin to pay back the government

collapse by keeping the financial system liquid. this involves actively using their balance sheet and in the lender of last resort. this will not work unless there are effective rules about capital and liquidity for all financial institutions, especially systemically important ones, ideally fairly uniform across borders. these may have to carry over the cycle in a way that liens against excessive risk-taking in a financial frenzy. moreover, nothing will work unless micro provincial regulators are enforcing the rule in ways that everyone can count on and procedures are in place to minimize the cost of the public is this is typically import institutions still has to be taken down. -- if the systemically importance institutions still has to be taken down. still get the effect of coronations among banks, the government and regulatory authorities. in the u.s., we just lived through a contentious process of drawing these lines of responsibility and coordination. i am not sure we got it right. i would have preferred to reduce the fragmentat

and this was the worst financial crisis where the regulatory system failed as well. it wasn't just the financial system that failed. you asked where there's been disagreements. i will say in the clearing area, one area that we're supposed to oversee, and it might be sort of selfish. we want to have clearing standards that are rigorous enough that the federal reserve and the bank regulators think they can withstand the test of time but also that international regulators will find our clearing houses equivalent and they'll stamp them that the international regulators will allow the u.s. clearing houses. so there's also a selfish goal in the sense for american commerce that these things have that. we did have a little bit of an arm's race on transparency. these four agencies and now maybe treasury, we all -- how we could be voluntarily, not do more than the law, on transparency and the rule writing, i think that was healthy. i do foresee some debates in the future on how the sec and cftc take on this swap thing because futures regulations and securities regulation is not