i want to end with a quote by paul volcker himself which, i presume, paul volcker knows more about the economy and the markets than most people in congress, maybe not. maybe some people are smarter than him. this is what he said about this bill. this constant -- this is a quote. this constant effort to get around the rule limiting banks' investment in hedge funds and on behalf of a few institutions who apparently want room to resume the financing practice that is got us into trouble in the past really should end. c.l.o.'s straightforward plain vanilla are a good and important investment tool for the american economy. they should and will be allowed under the current rules. there should and will be time for people to move slowly and thoughtfully without a fire sale out of the handful of risky investments that are there, a eneven those people who love those risky investments will be able to do it still just not through a subsidized bank. i know that i have not convinced anyone. i know i'm going to lose this vote on the floor and i respect it and i hope to god that my concerns are wrong a

the volcker rule caps banks' abilities to invest in risky funds.all under this rule. >>> now, it's the end of an era but is it also a security threat for the business of banking? from today, microsoft will stop providing security updates for windows xp, with 95% of bank atms using the operating system, it could make lenders more vulnerable to security laps. kayla tausche has this report. >> reporter: some 95% of all of the atms in the united states run using a 13-year-old piece of software, called windows xp. april 8th is the deadline for extended support. meaning the traditional software used in the atms will no longer be updated by microsoft. that has caused banks to rush to transition their systems. it costs about 3,500 bucks for each atm to be updated. they have to be programmed individual individually, meaning this say tedious process that doesn't come cheap, jpmorgan chase, bank of america, wells fargo and pnc have asked microsoft for extensions to get them to this point. microsoft did end that support several years ago and federal regulators

with the conversation between paul volcker and the senator kaufman that volcker says anything you propose that they say planting or growth will suffer then he would pause and say "is all bullshit. [laughter] not all regulation is good. i go to some events where i see the sauce age being made. i see the interactions between the lawyers of the regulators there were a lot involved a lot of legal stuff. it is the power play that has complicated with these interesting relationships to generate more jobs so they write a complicated regulation with lots of loopholes this is the full court ruled the way it came off the shelf was impossible to implement and it is 1,000 pages of legal rules. by the time it is done let me forget with the words that you know, . and injured said dodd/frank act that is supposed to save us but only to the it reid do that also has to cut the budget but the first title there is a requirement from the banks when you worry about your loved ones to make decisions about disconnecting. they want the banks to describe how they would go to the same baker see court that lehman br

paul volcker, i see him walking around manhattan, vibrant. where are the future paul volckers?> i hope so. very few by definition people who can fill those shoes because it is an unusual combination of brilliance, integrity, and a family deep commitment to the public well-being. >> but many of those people are choosing not to do what you do -- you did, which is public service, because you are a piÑata in the media today. dashwood paul volcker now the wood he did then? i am not sure. >> i suspect so. i don't think paul had any inclination to do anything except serve what he considered to be the public interest. >> how do you respond to the polarity of washington wanted to whether any given -- or any given city, boise, idaho, or new york, where it is a one-party city? is ourink what happens society made a lot of commitments that we can't currently afford to keep. and therefore the stress between those obligations and our resources is creating an enormous tension in our politics. because if you can't meet your obligations, whether two people who let you money or people who work fo

the volcker rule, which i discuss at some length -- not that i've read it and neither has anybody else -- is another example of how poorly of informed those who write our laws and regulations are about the inti ca says about the way in which markets and other aspects, other areas of our society operate. so two weeks after the volcker rule was issued, you may not have read this, it's not widely covered by the press except for "the wall street journal", i think, is that the banking authority regulatory authorities were obliged or felt obliged to cut back on the volcker rule insofar as it applied to local banks. why? because it affected local banks in a way that the rule makers had not anticipated. these effects were dire, dire, indeed. just one example. another feature of our policy making system its rigidity where adaptability and flexibility are needed. here i provide a number of examples again. the postal service has not adapted well to the new technological and market facts. not, again, not because they're stupid or indifferent to these changes. they actually have tried hard to convi

that's a piece of the volcker rule so banks will have a little bit more time here to get right with volckeroing to be a relieve for some of those people responsible for implementing that very complicated rule making process. kelly? >> eamon, thanks very much. a quick reaction from the panel. nomi, seems like the obvious place to go here. >> kind of exactly what we were saying in the last segment. things aren't that healthy. on the one hand banks using any power or any muscle that they have to extend any aspect of the volcker rule. on the other hand, you're talking about the area that's related to loans, that's related to mortgages which is still a hangover from what we experienced in 2008 and 2009 so this is just an indication that things aren't healthy as well as the muscle coming into extend that longer. >> i will just say it's been interesting to watch this space because all the while we're focused on what's happening in the stock market, on the credit side there's been a lot of activity lately, pes legs any collateralized loan obligation space. these are bundled loans. last week was the

governor doing a sort of paul volcker on inflation expectations in india. policy rates are high. notation is coming down but coming down enough for the r.b.i to declare victory and say that they have reduced inflation expectations. we know that that can be painful for the real economy. it turns the currency into a one-way bet. >> we have mark mobius now. beenext guest has investing in emerging markets for more than four decades. [indiscernible] 800 people going to the polls. it is going to take five weeks. -- 800 million people going to the polls. it is going to take five weeks. it is an amazing feat. what do you think of in india? they still had to see -- they still seem to have this hangover that comes from the nehruvian era. taking the shackles off of that is the biggest problem that this country faces. >> that's true but india has done it in various stages, taking the shackles off. that is why modi is a front runner. many have seen what he has done in his state and say they want that. the problem is not the center. not making reforms that have to be made. that is why they are

interestingly enough, the skeptic from that major league handle was the federal reserve and who, paul volcker and quoted in this john henry profile who set that is actually not true. if you look at the oakland a's and the teams like them, they seem to do ok with low payrolls, and smart financiers are buying these teams, which they would not do if they were a losing bet, and sure enough, you can see 12 years later that we have teams like the oakland a's and the tampa bay rays, who have managed to have quite a bit of success despite having small payrolls. what is interesting with henry and with the red sox going forward, not only do they have to that statistics approach, they also have an enormous payroll. they are kind of combining the best of both worlds, and they hope that will bring them more world titles. >> josh green, john henry, in addition to the boston red sox has also got the boston globe, right? >> he does, he does. butd a little bit on that, my focus really was the red sox, but i did some asking around about whether you can apply sabermetrics to a newspaper chain, and the answer i

well, their visiting and lending unit is kind of new and improved version of proprietary trade in a volckerwhether it will remain -- >> i'm also watching ibm. analysts on the street largely don't like the stock, but this is a stock masses moved up 8 percent or so in the past month, so it's taken people by surprise. it's one of those steady eddy growers, but we're watching for what they say about the pc business. seeing pockets of strength, and also this is the first time that the cfo is actually taking the reins. he took over the reins at the beginning of the year. so it will be interesting to see what the cfo actually has to say about it. >> i've been talking to long/short folks, they're looking at the sort of value names. ibm is kernel one of the older-line names are they in that pack, though? >> they were underperformers in the dow, so remember if euro at a timing out of the certain stocks maybe it's one of the once -- >> maybe an old-line growth story. >>> that's it for earnings squad. brian, back over to you. >>> right on deck, the double bacon cheeseburger edition of street talk. the

among the topics we discuss, credit card security, banks' capital structure and the volcker rule.newsmakers airs sunday at 10 a.m. and again at 6 p.m. eastern on c-span. >> whether it's an award for good journalism as a politician, i declare an interest in not wanting to make a judgment on that. [laughter] but an award for public service for possibly the greatest betrayal of our national secrets of all time strikes me as quite bizarre. and i do think that there's a real danger of a very cozy media without fully understanding the consequences for the dangers that we face in a very dangerous world. so i think there's a dangerous disconnect there. as for "the guardian" newspaper itself, my view was that if i as an individual gave the names of operatives outside a u.k. jurisdiction, that would be in breach of the 2000 terrorism act in the united kingdom. that would apply to me as an individual, why would that not apply to a newspaper? >> this weekend onç c-span, former british defense secretary liam fox on'd ward snowden -- edward snowden, government surveillance programs and privacy

litigation risk is going to dissolve, and the regulatory headwinds that people have pointed out with the volckerre all in the rear-view mirror. i think it must be bought on valuation, improving consumers trends, look for good retail sales today. housing, this is definitely a group you want to own. this is probably the biggest weight in terms of the bets. >> i believe we just made a market. >> that's right. >> in the financials. carter and john -- i can't wait for your sequel to come out. john carter 2. check out the online -- thanks, guy, in partnership with yahoo! finance. >>> google swooping in to buy a drone company. what is goog's motive here? >>> later on, why this year's tax bill is giving america's wealthiest a serious case of sticker shock. does anybody besides america's wealthiest actually care? >> maybe they should. >> that was a segue. >> was that a question to us? >> that was not a segue to "closing bell's" tease, though i hear that kelly evans is starting campfires these days. >> shall we take it? >> yes, police. >> thank you so much. stocks make a comeback. is the rally back on. yo

on the other side, you have the regulation, we have the volcker rule, forcing a lot of basicsing to outthe past, so the result is that you're really getting it from both sides. of course, the compliance costs are either hurting the earnings for the big banks or making some just decide we have to merge, we've got to get out of this business. >> citi is coming up next week, kayla. they've had issues with the mexican basicing arm, so it will be interesting to see how their report comes in. the street does not have high expectations. >> the street does not have high expectations. the expectations have only gotten lower by the day. the mexican unit, but also the stress test, you imagine that at the beginning the march, once they figured out they would not be moving forward, that they hired a lot of people, took a lot of expenses into account there, so i think not only is citi going to have a bar that is high, and it probably won't clear it, but also there's going to be a lot of macro issues weighing on them, too, so that will be tough for a company like that. >> do you agree, kneale? >> i ag

sometimes you have to read between the lines to get there but is there too much -- people like paul volckere, never gave two cents how the market would react when he was looking to shore up the dollar or deal with employment. >> from a bond investor perspective, a market participant perspective maybe the fed is doing a little bit too much here. they're giving as you 900 word policy statement and they're giving us a set of dot plots about the future path of interest rates. i'm sure they're watching your show, david. so a little suggestion to them, drop the dot plot, please. david: you're going to have to tell us what the dot plots are, sorry. >> a dot plot is a collection of all the forecasts next couple years where interest rates will be and where the fed funds rate will ultimately end up and that is known, a series of dots literally. that is become known as the dot plot. the market obsessed over that a couple weeks ago and then today with the fomc minutes, it was, noted within the minutes that perhaps there was too much information in these dot plots and, i just think they maybe they shoul

clo is a way for banks -- the volcker rule part of dodd frank, ability to invest in risky funds such as hedge funds or private equity funds. financial regulators vote on tuesday to finalize tough requirements for u.s. banks. a lot of news in banking and federal reserve land this morning. joe? >>> andrew, in ukraine, a lost commentary and things happening. tensions rising. russia's foreign minister warning kiev, warning kiev, that any use of force against pro-russian activists could plunge the country into civil war. ukrainian officials are accusing russia of instigating the protests. that led to these guys seizing government buildings in three separate cities all in eastern ukraine. ukraine's president warned on monday antitrust measures would be taken against protesters who have seized arms. meanti meantime, secretary of state john kerry is attending a meeting to ease tensions. the flare-ups are being felt by the oil markets. th that's when it affects cnbc's news. take a look at the lead story in the "journal." the core, russian citizens, a lot of them look like special forces. theo

in volcker rule is still discussion and formation even though the legislation passed three years ago.re is a lot of regulatory development going on. the courts also play a large role in interpreting some of these. biggest think that the thing that might hold back a recovery in deals as regular touring. -- is regulatory. the number of situations you run ions where the regulator approve letter you can get something or not is very rare. >> the big ones are driving the volume. >> then maybe jetting volume on the $. -- they may be driving volume on the dollar side. it is often the revenue that drives. the correlation between size of deal and size of the fee is not that close. it is important to look at the number of transactions rather than the dollar volume. if you have one deal, it might distort the dollar volume figures. we look more at the number of transactions. >> we will get some final thoughts with roger altman. cristina, thank you for that on m&a. got much more coming up. new york giants' wide receiver telling us why dancing and singing are so important to his career. stay "in the

ruled that a convicted steal year-old rapist known as the pillow case rapist can be released to: paul volckerthe fight whether or where this man will go. he's been set for release. >> : he was convicted to a set >> : 197172 also in the south bay from 1980 to '82. at that assembles a middle school in 1990. he was originally set to be released to a home in l.a.. but the landlord withdrew the offer after not cry. from the committee >> : there was an argument escalated between specialist lopez and other soldiers before the shooting happened at the military base earlier this week. and for could texas. >> : the gun but the store was used on the same day that he wrote a specialist is the page " a spiritual pieces of it has all gone away to a full page i now believe the devil is taking me. ". the base commander downplayed the alleged killers mental problems. align the underlying medical conditions we do not believe are the direct precipitating factor to the incident. >> : the motive may a dog with him. >> : we don't know exactly why he did what he did we may never know. >> : the time of father was >>

. >> maybe paul volcker?t those large banks to return to shareholders their citigroup stock at the same level it was in 1993. >> he will not get me to defend them. [laughter] flex is there an industry well suited for activism? >> a look, stephanie, not a great question, i love you dearly, but not a great question. every industry to a certain extent has candidates for what could be better run. >> is there an industry that is right for it? >> we could have activism 101 here. one of the things they look at? bad governance. bad management. misallocation of capital. misallocation of r&d. business models that are not focused. >> i don't think it is an industry question. my question is why they are going to those best run companies today? they should be doing their homework. that is perplexing to me. the quieter activists do go after poorly run companies. >> well, that is fine. on the corporate side we should get our act together and run well. ok? we have got to perform every. we have seen activists -- this is not a

it was named for paul volcker, preventing big banks from putting their own money at risk. the rule will be costly and ineffective. >> russia is increasing the price of natural gas by 40% to ukraine. russian producer says the increase is justified because ukraine owes $1.7 billion in unpaid bills. let's find out about your temperatures across the nation today. >> we have colder air behind the front through the midsection of the country that brought snow to north dakota. this morning, billings at 21. there's still gusty winds across the region. once you factor that in, feels like minus 11 in fargo. that does not feel like april, even by fargo standards. omaha where we had temperatures 60 close to 70 the last couple days feeling like single digits. >> across the country today, colder air has sunk into chicago at 51. east coast stays pretty mild and the west coast a little cooler, not particularly cool, but under some of the moisture that will be in that region. back to you. >> nicole, thank you very much. >> health officials racing to stop the spread of the ebola virus. are t

kurt volcker, i appreciate the perspective. kate?coming up next on "new day," the bluefin has just been deployed as an oil slick was spotted some the search area. was it from the plane? our experts weigh in. >>> and a white supremacist behind bars in kansas. a congressman from kansas joins us to talk about his personal 25 ties to the victims and also how it has impacted the entire community. we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going to have to rethink this thing. it's hard to imagine how much we'll need for a retirement that could last 30 years or more. so maybe we need to approach things differently, if we want to be ready for a longer retirement. ♪ if we want to be ready for a longer retirement. at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery r

. -- thee governor governor doing a paul volcker on inflation expectations in india.h. inflation is coming down, but it is not coming down, at least enough for the rbi to declare victory and say they have expectations.ion we know that can be painful for the real economy, but it turns the currency into a one-way bet. they are going to keep interest rates high until they feel that have reduced inflation expectations sufficiently. we don't know when that is, but until it happens, the rupee is a one-way appreciation that. t. be i think a lot of investors are putting money into the fixed-income market to take advantage of that. there is a close parallel with indonesia. the bank of indonesia has made its currency view of the rupiah a one-way precision that. they have a target of reducing their current account deficit. until they do, they are going to be very supportive of the dollar-rupiah, preventing much appreciation, because they want to keep that currency kind of supportive of exports and discouraging of imports. the top two currencies and india -- in asia, the indonesi

some of thatn did and paul volcker did some of that and ben bernanke did some of that.te has a dual mandate unemployment and inflation. there is nothing in the statute that says the federal reserve should only spend time with wealthy market investors. it's important the federal reserve spends time with real workers. >> this brings us to the larger issue of income inequality. this resonates with a lot of people. are you hearing people in d.c. talk about income inequality? >> it is and i feel guilty. this book is clearly a watercooler conversation it's a very complex issue. that's why it took objection to mr. singer's comments that it has to do with the federal reserve. i think the book has a point of view and some conservatives don't buy his point of view. it's a topic i think is terribly important for america to discuss. i have heard people make the point that paul singer is basically using this letter as a political soapbox. is to insultif it janet yellen the more to insult the president and congress in saying that they are not doing what they should do and their which

and new york is problematic because if you get rid of just maybe the volcker rule there still are so many other aspects in the way that washington d.c. supports new york that you don't really have a free market and it creates problems the s.l.s. that you well. yes from this right now people from very different ideological backgrounds look suspiciously at too big to fail banks yet when lehman brothers failed the markets nearly melted down they would have had people concept and what's your solution to the wall street to washington boom bust next this. well i think i mean just as a quick point should be careful about what it would mean to say that the markets what a meltdown if the government hadn't stepped in and lehman and whether or not that if you would have been a bad thing but i mean i think that actually kind of gets to the point of maybe the libertarian response to this and it is to look at the political reality and the reality is is that we will never be able to eliminate the sort of hand in hand situation that is between washington d.c. and new york the basel regulations the b

up next on the program, the fed is giving an extension to big banks for part of the volcker rule.analyst dix bove will weigh in when "squawk on the street" comes right back. [ hypnotist ] you are feeling satisfied without standard leather. you are feeling exhilarated with front-wheel drive. you are feeling powerful with a 4-cylinder engine. [ male announcer ] open your eyes... to the 6-cylinder, 8-speed lexus gs. with more standard horsepower than any of its german competitors. this is a wake-up call. ♪ >>> welcome back to "squawk on the street." check out shares of alkermess after the experimental drug to treat symptoms of schizophrenia met its goal. the company will submit the drug for fda approval in the third quarter of this year. you can see that stock currently off session highs up about 4% on the day. back over to you. >> thank you very much. the fed is giving banks an extra two years to conform with part of the volcker rule that would force them to sell riskier forms of debt. dick bove an analyst at rafferty capital where he joins us now. good morning to you. >> hey, simon

ambassador to nato, kurt volcker.t does russia need to do to show the international community that it's serious about the geneva pact, or are they? >> well, that's just it. i don't think they're serious about it at all. i think that they're playing two sides of a game here. on the one hand, they're saying, oh, we're russia, we have nothing to do with this. this is a domestic and indigenous uprising against ukraine, what can we do, and saying within our own territory, of course, we have the right to put troops wherever we want to put them. so they are doing that on the international side, trying to portray a helpful role, or a neutral role. in fact, russia's actually actively supporting these groups in ukraine. they, i'm sure, are being organized and led by russian special forces, as we saw in crimea. and putin is reserving the right to intervene in ukraine, as he said in an interview the other day, if, in fact, the violence escalates. the groups will hold their ground. the ukrainian government is hamstrng by this agre

ambassador to nato, kurt volcker, joining us live right now. what's your take on this?ad. what does this do to this crisis, an incident like that? >> well, i think it is intended by the russians who i believe committed this to try to provoke ukraine to respond in order for them to justify a more russian response. very similar to what we saw in georgia in 2008 where the russians were continually probing and poking, trying to get georgia to respond. and then when they did, they went in massively. i think the russians are poised to do the same thing in ukraine and trying to provoke these kinds of incidents. >> and the russians still control those parts of georgia to this very day. i assume putin simply thought, you know, if he could get away with it in georgia, why not get away with it in ukraine? >> well, exactly right. and crimea is one where he has always had a strong interest because of the russian naval presence. and even back in 2008 before he invaded georgia, he commented that ukraine was a put-together country, that these territories were only recently added. it wa

it seems of late one of the most highly concerning rules right now is the volcker rule, as you are aware. and we would have an interest, i guess, as a subcommittee here as to the response you gave them to their letter when they asked about the economic analysis and had it -- in the letter it referenced it had not been performed and yet you were moving forward with the rule which was in violation of the law and they asked for response to that. were you able to provide that response to them? if you had, could we get a copy of that? >> sure. we did respond to that. first, i would say we did and the agency is, again, did not have to do a joint rulemaking on this but did actually act jointly on this. and there was economic analysis done which is reflected actually throughout the rule on various issues and comments came in raising economic impact issues and the final rule is quite responsive to major issues. what we did not do, given the context of the joint dynamic of the rulemaking was apply our guidance and no other agency applied a specific agency procedure to the rulemaking. so i think th

that enabled us to maintain an increasing policy of growth thanks in part -- in large part, to paul volckerking at was both something good and something which made us a little nervous. we liked very much to see the economy moving forward in an extraordinarily long period of rapid growth, but we also knew because we talked about it at the time that very successful monetary policies inevitably lead to bubbles. fortunately not all bubbles are toxic. in fact, the dotcom boom, as you know, was an extraordinary major collapse in equity prices, and there were huge capital losses, but they were not leveraged, and as a consequence, if you look at the period immediately subsequent to that crash. the economy did reasonably well and had a very, very mild recession >> you know, chairman greenspan, i would like to have you look at tuesday's economy rather than back at the one of the past 25 years, but in light of what you just said, a long period of very, very nice growth and incredible job growth for much of that period through the late '80s and '90s and much of this century. why do you think we're havi

. >> the premise of your book, if you want to check out something we're all familiar with, the volckers 950 pages. compare that to the affordable care act, 2,700 pages. we started out in a simpler time which is ten pages. is progress part of the volume? >> it isn't progress. it is trying to avoid human choice. old laws, the new deal would be 10 pages, 20 pages law. 1950's, interstate highway act, we built interstate highways with a bill about 40 pages long. today it would be thousands of pages and would take two decades to begin building it. >> you write washington is a place where nobody is responsible for anything. on it and i'm responsible for turning a profit and i care. if not, i punch in to work and say i'm not going to get frustrated. going to do something else. >> who is responsible for the mess in washington. >> this is what you say we can do to change things. limit statutes, example? >> there is a good law, special ed law marked at being 25% of the total fee of budget. nothing for prepay education. that should be looked at and say is this the best balance for our kids. >> the

the past thirty years now do you think that we relied too heavily on monetary policy well as paul volcker told me the other day when i the former chairman of the fed of course when i interviewed him in london he was receiving a lifetime achievement award monetary policy has been you know often the only game in town is true of the united states is true of other countries governments have been unable paul didn't say this directly but i'm now interpreted what he said. governments just have not stepped up to the mark they have not supported monetary policy sufficiently. for instance in fiscal policy or in structural reforms and so on luckily the united states with its flexible economy much more flexible than other countries is as usual leading the world out of recession but who in america really has confidence that the underlying problems have been solved certainly they have they are not confident here or in euro zone or in the emerging markets. and you know what the answer then robert or is it just what the markets just desired fiscal stimulus white in your view i believe we have to go back

is co-chaired by the former lieutenant governor of the state of new york, richard ravage and paul volcker. they spent a great deal of time analyzing the impacts of what we do here on state and local governments and taxpayers. what did they find? they find that fiscal strength runs downhill and often local taxpayers are the recipients of that stress. everything we do here in congress or everything we don't do has significant implications for levels of government and local taxpayers. but no mechanism exists at all to assess the fiscal impact of federal actions on those taxpayers. i'm offering this amendment today because if we're going to analyze how our fiscal actions affect the economy, we need to make sure we're not just pushing off the hard decisions to local taxpayers. let me give you an example. the budget offered by mr. good friend, the gentleman from wisconsin, the republican budget, cuts over $50 billion from road repair and infrastructure investments. and so the implication of that budget is that the federal government does less but local taxpayers have to pay the bill to fill in