street money that is a problem, volcker saw that. >> i never heard paul volcker saying we should reinstate glass-steagall that is what you are talking about. >> he was biggest enemy of getting rid of glass-steagall. >> this is what paul volcker wants. neil: he worked with him some so did i. >> and longer, and i am older and longer. neil: he is rubber you are glue. >> volcker wants banks to be regulated by utility. with 0% earnings, that is okay. but if -- >> is it a mistake if you break them up. >> no, here is how you do it you create a free market way of doing it you tell any bank if you want to be involved investment banks on the side, doing that crazy trading stuff guess what we're not going to ensure your deposit. >> the scary thing about what he is seems to be endorsing is a mega-regulator that would carry out the work that scc and other bank regulators do it reminds me of how homeland security would solve all problem after 9/11, we get fbi and cia all together under one roof, it did you did you not -- it did not solve all problem. neil: if bank of america were to be on the rocks righ

. >>> also former fed chairman paul volcker telling regulate, to wake up.have a huge financial problem yet addressed in our system. what is it and is he right? we'll debate that coming up. people ship all kinds of things. but what if that thing is a few hundred thousand doses of flu vaccine. that need to be kept at 41 degrees. while being shipped to a country where it's 90 degrees. in the shade. sound hard? yeah. does that mean people in laos shouldn't get their vaccine? we didn't think so. from figuring it out to getting it done, we're here to help. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. >> sanctions coming down, i don't want to get out ahead of john kerry and my negotiators in terms of how to craft this. i would just take a general observation. and that is, that, how sanctions are, lessened, how we snap back sanctions if there's a violation, there are a lot of different mechanis

that the point what you're seeing is because of the volcker rule, a rule named after paul volcker, themer presidential adviser, fed chairman, in the early 1980s. banks can't do that anymore, and other rules make it impossible for banks to hold onto inventory. this is what he's saying, if there is ever, ever a route in the bond markets, which essentially that was part of the financial crisis, people having to sell the prices of mortgage backed securities and other securities going down, wall street firms are prohibited because of new rules from jumping in and preventing a fire yard sale at holding inventory until things get better. that is what jamie dimon said, you have to read it three times. i covered the financial crisis, covered a lot of stories what was going on. i interviewed jamie dimeon. they're not going to hold onto the inventories. not only that, some other issues are going to go on here. firms will not be willing to step up to the plate like jpmorgan did and buy bear stearns. why is that? jamie, as he knows from firsthand experience assumed all of bear stearns liebt. he had

neil: paul volcker warning this regulators do not go far enough. >> in a way that reflect the changesn the market we're in trouble. big trouble. neil: volcker said, here is why we're in big trouble banks door big to fail, and problem for financial industry are too many to count. his big fear, big banks are way too

we had a two year recession. >> true. >> that is courage. >> and in middle -- >> what volcker did. >> in middle of a deep recession in mid elf 80s citigroup experienced first of 3 collapses. but bernanke was saying raising interest rates like taking a elephant gun to a mosquito. i am not sure he picked this title, this is an inept title. i understand their psychology, but, we're dealing with now is we tried everything. we tried triples of fed balance sleet attacks hikes and government spending what about tax cuts, we have yet to do that. >> simon and liz. one time all 3 of us were at "wall street journal." >> i am still there. >> thank you very much. >> so is the white house about to give thetic smek the economy some juice by squeezing the middle class some more. but first grover norquest is revved up, and he is here, that is next. the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions o

>> i want to ask you about the extraordinary group of pullers how did you get paul volcker so glowingly to embrace this book? >> he has enough is a few blocks away in their asking for a blurb with his time at the fed it was the test meeting. to have questions of my history and i was so surprised three months later nothing had happened then i got the endorsement but just with the very scope of it. >> also is in the future of money in there is the chapter of the future we can talk about. >> there will be a point with the on-line services that we will not in the coinage. is that possible? >> 85% of transactions which is surprising it is tough to find a credit-card reader or choose my pay credit-card with that germany over 80 million people the 10 billion with credit cards but so it means gilts sow their cultural reasons why they don't in tight end that the territory that has higher marriage rates that is when the marriage rates are higher. if you have more money in the bank there is an abundance of malone's of the economist rights the disease your id narrow began york and instantly to pay

[laughter] with a the greenspan underwear for all paul volcker underwear. [laughter] you are irrationally exuberant. >> but to all you young people who is the most offensive? brady? >> he is a gentleman. >> they just don't want to get into it. neil: is it back? neil: maybe he did catch a break. he is getting closer to the hall. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner brighter future. at boeing, that's what building something better is all about. ♪ ♪ neil: ready for the comeback? a new commission in says he will be allowed to participate in the all-star game in cincinnati. but former commissioner says that could be bad news for baseball in joins us on the phone. >> i am a fan of yours and i respect what you go through. bravo. neil: but what is mitt -- misleading is what they are allowing him to do since the event is in cincinnati that all of the all-star teams can

i want to go back to the point about the volcker provision under dodd-frank.saying is the bank puts on the treasury trade, they levered up to the moon and it's wonderful. i'm not sure about the ultimate liquidity, but what it means for investors -- and we traffic and credit -- we are getting a substantial liquidity rhenium to provide capital to the marketplace. as many things as it screws up, it creates opportunities as well. >> you buy things that are not traded as frequently and you get a better deal. guest: that's exactly right. given the credit cycle, we're not going to have much of a default cycle for the next couple of years therefore it's an opportunity to capture bigger liquidity. alix: walk me through the dollar strength we saw today. guest: i will argue the fed minutes were somewhat stale in light of new information, but it did show policymakers were seriously considering moving in june, so this puts us back into the scenario where maybe the fed is going to turn a blind eye to the dynamics from the dollar and charging higher interest-rate. that appea

[laughter] with a the greenspan underwear for all paul volcker underwear. [laughter] you are irrationally exuberant. >> but to all you young people who is the most offensive? brady? >> he is a gentleman. >> they just don't want to get into it. neil: is it back? neil: maybe he did catch a break. he is getting closer to the hall. the world is filled with air. but for people with copd sometimes breathing air can be difficult. if you have copd, ask your doctor about once-daily anoro ellipta. it helps people with copd breathe better for a full 24hours. anoro ellipta is the first fda-approved product containing two long-acting bronchodilators in one inhaler. anoro is not for asthma. anoro contains a type of medicine that increases risk of death in people with asthma. it is not known if this risk is increased in copd. anoro won't replace rescue inhalers for sudden copd symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, or high blood pressure. tell your doctor if you have glaucoma, prostate or bladder problems, or

[laughter] with a the greenspan underwear for all paul volcker underwear.laughter] you are irrationally exuberant. >> but to all you young people who is the most offensive? brady? >> he is a gentleman. >> they just don't want to get into it. neil: is it back? neil: maybe he did catch a break. he is getting closer to the hall. next. let's pin 'em to the wall. kick 'em around. kick 'em around, see what happens. because we're in the how-do-i-get-this-startup- off-the-ground business. the taking-your-business- global-business. we're in the problem-solving business. 400,000 people - ready to help you solve problems while they're still called opportunities. from figuring it out to getting it done we're here to help. ♪ ♪ ♪ (under loud music) this is the place. ♪ ♪ ♪ their beard salve is made from ♪ ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing you see what's coming next. you see opportunity. that's what a type e* does. and so it begins. with e*trade's investing insight

two things that happened to decrease the liquidity and the transparency could one is the volcker rulethe amount of corporate debt held on inventory on bank balance sheets is dramatically down relative to the size of the debt market -- corporate debt market. in the cash market, the upper spread is much wider. the other thing is that one of the enemies in the financial crisis work better derivatives, or synthetic credit. while the index credit indices or synthetic credits are growing, individual credit default swaps have declined dramatically relative to the cash market -- erik: if i wanted to buy protection for a default against ibm. jes: most of the individual names are around the top 25 names -- erik: no depth to the market at all. jes: after that it is increasingly challenging. erik: we're talking him up the disappearance of liquidity into parts of the bond market and derivative market. which is a bigger deal? the alarm bells people are bringing are the alarm bells of the cash market. you don't hear people talking about the disappearance of single name cbs as being an unintended con

. >> volcker is talking about a new way to regulate the markets. can you explain that a little bit?as a plan to rethink the regulatory structure. dodd-frank said it would think the regulatory structure. and alphabetize -- >> we should throw up a chart. of what banks -- how it's regulated. it looks like. if you see it. and i have it here. cheryl: we don't have the chart. charlie: if you look at this -- cheryl: look at charlie's notes. >> raw shock test. charlie: that's what they have to supply with it. >> i if you the put it on the sc website. cheryl: thank you so much for coming. really the voice -- i feel like i had the voice of reason in front of me. which balances out -- all right. thank you very much. great interview. >> all right, the closing bell, 26 minutes to go. we'll have the latest on the stock sell-offs. watching on wall street right now. investors have thrown in the a towel for jcpenney. one fund manager says it's the time to buy. get ready for weekend with warren. liz claman winging her way to omaha. interviews with insiders. and a prime time special. wrap up the entir

how did you get paul volcker to so glowingly embrace this book? >> it was certainly unexpected.he has an office actually, not -- across the street or two with blocks away from where i worked. i sent him a letter. not asking for a blub, just because i'd done some research, and i had some questions about his time at the fed. he invited me into his office and it was a tough meeting, you know? [laughter] he had a lot of questions about my history the history i'd worked on, and i said, well, i just want you to read it. and i was so surprised maybe three months later, nothing had happened. i got an e-mail from his assistant with an endorsement. but he appreciated i think, just the very scope of it because it wasn't it's not just a traditional history book. he was also fascinated in the future of money. we had a big conversation about the future of money and what that holds. and there's a chapter on the future, we can talk about that -- >> yeah. did you think -- some people say there'll come a point because of the online services that you won't need coinage and cash. do you foresee tha

like the dodd frank volcker rule.en in key markets like treasuries subjecting them to wild bouts of volatility on days like october 15th of last year, where you had a real lack of bank inventory in the market. and that created an unprecedented move. >> thank you so much, kate kelly with an update on that. joining us with his take on whether jp morgan is getting too big, the co-author of the wall street reform and consumer protection act, former representative from massachusetts, barney frank. representative, welcome back. what did you make here of this argument by jamie dimon? >> first, whether or not it's too big, that's not something on which i expressed an opinion. we did implicitly express that opinion, because in legislation we differed with those who said we had to reduce the size of the institutions. one of the problems i've had with people who tell me that we should reduce these is i don't know to what size they want us to get down. if the argument is that no institution should be big enough so that its failur

bill: the experience from the late 1930's to 1979 when paul volcker turned it around with real interestence through world war ii and into the 1950's and 1960's was that the real interest rate averaged about -2%. that is the historical example. ben bernanke in his blog this week he basically says no deal. if interest rates are that low surely someone in the rest of the world would want that money and use it for investment. larry summers thinks the opposite, that there are structural influences in terms of high debt and demographic aging populations, headwinds that reduce the real rate. i'm in that camp if only because we have high debt relative to gdp. everywhere in the world. high debt, you need lower real interest rates to keep the economy above water. olivia: what are you looking for? what is going to be your signal that rates have hit rock bottom? bill: well, in the u.s., the signal would not be clear. you have this huge spread between 15 basis points in germany but if we move closer the u.s. treasury can continue to rally. i think where it is now is basically pinned between 1.65% an

volcker came out saying that maybe the cftc and sec should merge so they can get a better view of thets. we live in a fragmented market with multiple asset classes trading that are linked together, they need to be regulated in a much better way. alix: thank you so much for joining us. really appreciate your insight on this. more than 28,007 security experts are in san francisco this week at one of the largest security events in the entire world. our own cory johnson is on the ground that the muscovy center -- moscone center with more. cory: it is something of a nerd fest, but this is a really big deal. the deputy undersecretary at homeland security joins me right now. you have a very interesting gig because it seems like the relationship between government and private industry is greatly strained over issues of data and cyber security, and yet, greatly interest -- intermeshed. your job is to fix that. how is it going? phyllis: it's going great. there has never been a harder time for many companies to work with the u.s. government, for all the reasons we hear about in the headlines, bu

financial markets and particularly in credit as a result of dodd-frank and evil or rule -- and the volcker rule. howard: larry is right, as on most things that she is a pretty good investor. historically, -- as on most things -- he is a pretty good investor. historically, if securities drop, the brokers would walk in and say i buy from my own account because why, because they thought they were getting bargains. they were not doing it to be mother teresa. they were doing it to score some bargains. but in the process, they brought liquidity back to the market. stephanie: what is more valuable to the buy side? the fact that they cannot take risk anymore and good times is great, they're no longer a competitor to you. a few years ago, goldman sachs was as much a competitor to oaktree as appaloosa was. howard: the answers that question stephanie, is yes. to both. we want them to be a buyer for the purposes of the overall market some overall liquidity the safety of the system. it helps to have the last resort. for oaktree's own purposes, yes, there were times that they competed against us to buy

the former secretary treasury volcker said it very well. in one week, through currency exchanges, you can undo years of benefits in terms of undoing tariffs. i would urge my colleagues to support it and i certainly support the minute that senator schumer offered. this is very targeted and focused and consistent with wto. it has to be consistent with imf and wto for it's a pulse. i would encourage my colleagues to support it but to do it in a way that enables our workers to compete. if they are given this level playing field, they can compete and they can win in the global trade war, but we have to be sure we give them the tools to succeed. >> i would love to have the administration's viewpoint on this. do we have somebody from the illustration here? did he just step out? >> he is there, he moved to the middle. >> you are and charge so we would like to hear the administration's position. >> thank you again. as i stated earlier, secretary lou and the administration have worked intensively to address currency practices through a number of bila

the former secretary treasury volcker said it very well. in one week, through currency exchanges, you can undo years of benefits in terms of undoing tariffs. i would urge my colleagues to support it and i certainly support the minute that senator schumer offered. this is very targeted and focused and consistent with wto. it has to be consistent with imf and wto for it's a pulse. i would encourage my colleagues to support it but to do it in a way that enables our workers to compete. if they are given this level playing field, they can compete and they can win in the global trade war, but we have to be sure we give them the tools to succeed. >> i would love to have the administration's viewpoint on this. do we have somebody from the illustration here? did he just step out? >> he is there, he moved to the middle. >> you are and charge so we would like to hear the administration's position. >> thank you again. as i stated earlier, secretary lou and the administration have worked intensively to address currency practices through a number of bila