the hobbying effort going on around the voelker rule is one of the most intense efforts i have seen inss. >> and the president's signing is part and parcel of that. the transaction had been we'll bail you out, and now they are trying to undo the new regulatory machine. >> this set of rules and this bill really almost even transcend the current -- they are rolling back investor protections that are 10, 15 years old, they are rolling back one of the things you did as attorney general where you helped create a chinese wall between what the analysts can say and what the investment bankers are doing. now we're going back to the days where an list can pump the stock to investors legally, it's reason unconscionable. >> and what has been lacking throughout this period has been genuine mortgage reform and if you were -- one might have said at least we're going to bail the banks out, write down enough of the face value of the mortgages so people can pay their mortgages. why has that not happened? >> the -- the main reason it hasn't happened -- there are several reasons. first of all the obama ad

voelker, you said something to the effect that any financial innovation after atm doesn't do too much good for the economic growth. so my question is that in your perspective does financial innovation and the financial engineering contributed to the widening income gap in this country? and frequent -- >> great. >> let me -- we don't have time. we're'going to solve the income gap in this country as some of our budgetary problems and priority problems like financial innovation. we got in trouble by thinking financial innovation can solve real problems. financial innovation cannot solve real problems. it's not going to reduce the amount of consumption or savings. just forget about financial innovation. if there is anything we had enough of, it's financial innovation. [ applause ] on the federal reserve -- this is a very unusual situation. the federal reserve has done things unimaginable a few years ago. much bigger balance sheet. all sorts of run up. but they do not present a compatible problem. they reversed what otherwise was a money creation and so forth. the problem will be the ever

we have three to tell you, joe galloway, burt quinn, kurt voelker. would you guys come join us and tell us your story. >>> i'd like to welcome you to the war correspondent's sunrise service. there have been some tall tales told here tonight and none toll her, i must say, than that remarkable statement just a few minutes ago by ike pappas that something happened and his hair stood on end: in the early summer of 1969 at the denang marine press center, a former bodie house -- they didn't even bother to change the sheets -- a young man arrived out of pittsburgh, i believe, for the associated press named george esberg. i don't know what the bosses in new york told george on the way over, but he arrived a very serious, very nervous young man. we had all been there a few months and everybody gets to go on their first operation and hopefully you don't disgrace yourself or embarrass yourself in front of too many people. george's first operation was spectacular. it was, as i recall, about a two battalion, three battalion marine operation south of denang. we al

the voel kerr voelker rule is a great example. there's not a european country that seems to want to comply with the regulations placed on our companies. if they don't, what position does that put the american companies at a disadvantage to the european companies in the future? if we're ever going to get out of the situation we're in today

the voelker rule is a complicated issue and much debated. i think the big question is how is the distinction between proprietary trading and market making going to be defined. i noticed the other day the regularities deferred their decision on that and it is not surprising because it is a hard line to draw and immense importance in terms of how our markets work and what the structure of the financial system will be. >> thanks very much. all the time we have. really appreciate your time. >> thank you. >> this is c-span 3 with politics and public affairs programming throughout the week and every weekend 48 hours of people and events telling the american story on american history tv. get our schedules and see past programs at our websites and join in the conversation at social media sites. >> indiana senator richard lugar is running for a seventh term and being challenged by state treasurer richard murdock. you can see the debate live from indianapolis tomorrow on c-span starting at 7 p.m. eastern. the cato institute recently hosted a discussio