proposed by and named after former federal reserve chairman paul volcker who served as chair of then president barack obama's economic recovery advisory board from two thousand and nine to two thousand and eleven the rule was meant to prevent banks from making certain types of risky speculative investments that volcker believes contributed to the two thousand and eight financial crisis specifically it disallows banks for making certain investments with their own accounts to increase profits which do not benefit its customers and it limits bank ownership of hedge funds and private equity firms the volcker rule is part of the much larger two thousand and two thousand and ten dawn frank financial reform law on which president donald trump has promised to do a big number the five agencies that set the original limits of the volcker rule are reportedly headed back to the drawing board while the rule is meant to make markets safer keeping insured lenders from making big market bets that could go bust critics argue it's made banks too conservative resulting in lost profits and in fact globa

rule was first proposed by and named after former federal reserve chairman paul volcker who served as chair of then president barack obama's economic recovery advisory board from two thousand and nine to two thousand and eleven the rule was meant to prevent banks from making certain types of risky speculative investments that volcker believes contributed to the two thousand and eight financial crisis specifically it disallows banks from making certain investments with their own accounts to increase profits which do not benefit its customers and it limits bank ownership of hedge funds and private equity firms the volcker rule is part of the much larger two thousand and two thousand and ten dogs . financial reform law on which president donald trump has promised to do a big number the five agencies that set the original limits of the volcker rule are reportedly headed back to the drawing board while the rule is meant to make markets safer keeping insured lenders from making big market bets that could go bust critics argue it's made banks too conservative resulting in lost profits and in

in a closed door meeting last week wall street regulators reportedly agreed to rewrite the volcker rule a remnant of the great recession the move plays to the trumpet ministrations efforts to roll back financial regulations without having to consult congress since the white house has faced an uphill battle getting lawmakers to push through other parts of its agenda the volcker rule was first proposed by and named after former federal reserve chairman paul volcker who served as chair of then president barack obama's economic recovery advisory board from two thousand and nine to two thousand and eleven the rule was meant to prevent banks from making certain types of risky speculative investments that volcker believes contributed to the two thousand and eight financial crisis specifically it disallows banks from making certain investments with their own accounts to increase profits with you not benefit its customers and it limits bank ownership of hedge funds and private equity firms the volcker rule is part of the much larger two thousand and two thousand and ten dogs . financial reform l

can you help quantify what the volcker rule did?ce, you would like to roll back? lloyd when going through : financial regulation, you could regulate the amount of capital, you could regulate prophecies, leverage, you can regulate activities. you can do this transaction, you cannot do that kind of a transaction. what the volcker rule did was it imposed a state of mind test. you could take positions, but they wanted to damp down speculation. but the line between speculation, which as a word seems very easily that we should all back off of, and market making, facilitating other people's trading, taking the other side of what your client wants to do, is also a risk-taking principal activity. the line between the two is very blurry and indistinct. the volcker rule says in effect, if you are taking positions, points of view, in anticipation, or in connection with a specific client operation, that is good, and if you are doing it, away from that specific, it is not good. but if you are a market maker sitting at a desk, it is hard to know w

the volcker rule and post a little bit of a state of my test. take positions, but they wanted to damp down speculation. the line between speculation, which is a word that seems easily we should back off of, and market making, facilitating other people's trading, taking the other side of what your client wants to do, is also a risk-taking principal activity. the line between the two is very blurry and indistinct. with the volcker rule, it basically says in effect if you're taking position points of view in anticipation or in connection with a specific client operation, that should. if you're doing it away from that specific, it's not good. if you are a market maker sitting at a desk, it's very hard to know where that distinction is. what really makes a market is a million people all at the same time buying and selling because someone thinks it's going to go down, someone thinks it's going to go up, and clients joining that walk that's called a market. in practice it's been very cumbersome, very hard to do, makes people who sit on trading desks ve

and volcker knew how to do it. he was a banker, and he -- i'll give you a little story about that. >> host: please. >> guest: he called bob bartley and me over to the new york fed right after he was hired and gave us a nice lunch, and then he said, okay, when there's blood all over the floor, will you guys support me? and i held up my hand first. i didn't give bob a chance. [laughter] we both agreed, yes, we would. and there was blood all over floor. we had a sharp recession, the latin american countries had overborrowed, they were this trouble, the farmers were in trouble, they had overborrowed, and there was a lot of blood on the floor, but we stuck by him. and when it was all over after the sharp recession, we got economic growth again. >> host: well, that's a great story. speaking of blood on the floor, you spent a lot of your career overseas as a foreign columnist, reporter -- >> guest: right. >> host: give us some of the highlights. what was it like being a foreign correspondent back then, for starters? i'm a

what the volcker rule did, was it imposed a state of mind test.sitions, but they wanted to damp down speculation. but the line between speculation, which as a word, seems very easily that we should marketk off of, and making, facilitating other people's trading, taking the other side of what your client wants to do, is also a risk-taking principal activity. the line between the two is very blurry and indistinct. the volcker rule says in effect, taking positions, point of view, in anticipation, or in connection with a specific client operation, that is good, and if you are doing it, away from that specific, it is not good. but if you are a market maker sitting at a desk, it is hard to know where that distinction is. because what really makes a market is a million people, all at the same time, buying and selling because someone thinks it is going to go down, up, and clients joining that process, which is called a moving market. it is cumbersome, and mix people -- makes people who were sitting on trading desks very nervous, and i think what it has do

what did you learn about what they're planning in regard to the volcker rule?se: they are about to start rewriting what has been one of the major ones in the side of wall street banks ever since the enactment of the dodd-frank at the 2000 -- act in 2010. it bans banks basically from investing their own money and also investing in hedge funds and private equities. the five agencies that you mentioned will be sitting down and will be rewriting the text. this marks the beginning of the financial review regulation movement that the trump administration has long been promising. david: how much power do they have to do something here? this was something brought about because of legislation. the chair of the financials oversight now is treasury secretary steve mnuchin. report and lengthy chapters on banking regulation. how much power do these regulators have to make real change? jesse: they do have considerable power. the work will be based somewhat on the report that secretary mnuchin's treasury produced very recently. the fundamental existence of the rule can be thr

was the volcker rule did imposed a state of mind test.ould take positions, but they wanted to dampen down speculation. but the line between speculation, which as a word seems very easily that we should all back off of, and market making, facilitating other people's trading, helping your client do what he wants to do is also a risk taking activity. the line between the two is blurry. what the rule says in effect if you are taking positions, points of view, in anticipation or in connection with a specific client operation, that is good. if you are doing it away from that specific, it is not good. but if you are a market maker sitting at a desk, it is very hard to know where that distinction is. what really makes a market is a million people all at the same time buying and selling because someone thinks its going to go down and someone thinks it is going to go up, and clients join that kind of moving sidewalk that is called a mark. in practice it has been very coum better some, very hard to do. it makes people who sit on trading desks very,

administration but there will be some tweaks to the volcker rule and perhaps to some other areas and i think that's appropriate no worries with doing that again we never said we were going to get it right as long as those fundamental markets that were not overseen that got us into the big economic mess don't resurface i think we're ok and we spoke about the volcker rule and some changes that the treasury department wants to make this week on the show and i wanted to ask because he's clearly using the financial regulators to go about this as opposed to congress is that the way you see trump being able to kind of push forward some of his financial policy proposals. a little bit simone but there's only so much that he can do i mean the law is the law the law sets the broad parameters for what the regulators do and then the regulators you know put the meat on the bone to say exactly what it is that the laws usually are not very prescriptive and so there is some flexibility on the part of the regulators but they can't take the volcker rule and rip it up they can't take the reforms i was t

say what your profits would be if the volcker rule were not in place?financial regulation, you could ,egulate the amount of capital regulate leverage, and you can regulate activities. you can do this transaction, not that kind of transaction. was the volcker rule did you could take positions, but they wanted to camp down speculation. speculationween back off of, and taking the other side of what isr client wants to do, that risk taking principal activity, and the line between the two is blurry and indistinct, but with the volcker rule, it said if you are taking positions and points of view in anticipation of connection with the specific clients operations, that is good. if you are doing it away from good,pecific, it is not but if you are a market maker at a desk, it is hard to know where that distinction is. what makes a market is one million people all at the same time because someone thinks it will go down in some of the .ivil go up in practice, it has been cumbersome and hard to do. desks are on trading very nervous, and it has had a dampening effect

the volcker rule imposed a state of mind test.could take positions they wanted to tamp down speculation. speculationween that we should all back off of and market making, facilitating other people's trading, taking the other side of what your client wants to do is also a risk-taking principal activity in the line between the two is very blurry and indistinct. volcker rule basically says in effect, if you are taking points of view in connection with a specific --ent operation, that's new good. if you are doing it away from that specific it's not good. if you are a market maker sitting at a desk it's very hard to know where that distinction is because what really makes a market is a million people all at the same time buying and selling because someone thinks it's going to go down someone thinks it's going to go up and clients join the moving sidewalk. that's called the market. practice it's been very cumbersome, very hard to do. makes people who sit on trading desks very nervous. it has really had a dampening effect on liquidity in

what people google did is -- what the volcker rule did -- they wanted to damped down speculation, butine between speculation, which seems very easily that we should back making,nd rocket facilitating other peoples trading, is also a risk-taking principle activity and the line between the two is very blurry and indistinct. with -- what the volcker rule basically says in effect is if you are taking points of view in anticipation or in connection with a specific client operation, that's good. if you are doing it away from that specific, it is not good. if you are a market maker sitting at a desk, it is hard to know where that distinction is. what makes a market is one million people at the same time buying and selling because someone thinks it is going to go up, someone thinks it is going to go down and clients move -- join that moving sidewalk. in practice, it is very cumbersome. it makes people on trading desks very nervous. it has had a dampening effect on liquidity in the marketplace. i think the regulators were filling in the regulations. that it has been in place for a while and we

do you agree with fsr that the volcker rule should be cut back to place restrictions on the banks? >> i agree with former governor tarullo that the complexity of the rule makes it difficult to apply and we should work to try to simplify. >> if you want to simplify you support glass-steagall, right? do you support glass-steagall? >> as you know, the key provisions of glass-steagall are still in force, 16, 21. >> the key provisions are not enforced anymore. they have been repealed. >> the ancillary provisions which were section 22 -- >> big banks to be able to engage in combined activities glass-steagall was supposed to separate. that is not permitted. >> the core provisions prevent the bank from engaging in fo section 16, 21. >> would it be purposely predicted? is that what you're saying? we got glass-steagall? >> i didn't get the first part. >> we are protected if we took away volcker and put glass-steagall in its place? that is why nothing was wrong in 2008? >> i don't think we in position of the ancillary provisions governing affiliates, section 21, 22 would make a difference in

. >> bloomberg has learned that wall street regulators will rewrite the volcker rule.inally set limits on banks from investing with their capital, what did you learn about what they're planning as part of the volcker rule #>> as i said, they are about to start rewriting what has been one of the major thorns on the side of wall street banks, ever since the enactment of the dodd frank act in 2010. banksole, which bans basically from investing with their own money, and investing in hedge funds, and private equities, this marks. the beginning of financial deregulation movement. that the trump administration has long been promising. to brexit,urn deutsche bank set to be considering a plan that would shift half of its uk's workforce to the european continent. most of the 4000 positions would move to frankfurt and berlin. this seems to be more dramatic than the other banks who are moving employees such as he and jpmorgan, why is that? >> and seems like it will be half of deutsche bank's workforce, in what is still is, the trading heart of deutsche bank. this is a huge change,

can you help quantify what the volcker rule did?ace, what would your profits be? rule, with the volcker when they were going through financial regulation, you can regulate the amount of capital. you can regulate prophecies and leverage. you could regulate activities. you can do this transaction. you can't do that kind of a transaction. what the volcker rule did is that imposed a little bit of a state of mind test. you could take positions, but they wanted to damp down speculation. the line between speculation, which as a word seems we should all back off of, and market , i.e. facilitating other peoples's trading and taking the other side of what your client wants to do, it's also risk taking printable activity. the line between the two is very blurry and and distinct. what the volcker rule says is that if you are taking positions or points of view and anticipation of a specific client operation, that's good. if you are doing it away from that specific, it is not good. if you are market maker sitting at a desk, it's very hard to know

want to get your thoughts on the volcker rule. bloomberg reporting relators are sitting down to rewrite the volcker rule. from where you sit, what's the single biggest priority in editing this rule? not repealing it, but in editing the rule? guest: what they should have done from the inning and that is if they are going to have a rule that will restrict banks from shouldtary trading, they make sure the derivatives of that market are allowed to proprietary trade also. prop are still able to trade in their market on the cash side. is on the visit futures side. the one concern i have is we need to have liquidity and we're going to get into a time of stress. the energy markets are fluctuating around. what if we have some serious volatility? we need more and more people to make sure we are providing deep of liquidity and why you would want to pull that out of the equation is a mystery to me. aboutt: we are talking bending the rules. there is the possibility of congress repealing the law. -- iu see that cap given don't want to say unpro

the fed whether it is janet or alan greenspan or paul volcker whenever good and have never been good at saying maybe we did not do this quite right. maybe we need to change course. they're not going to stand up and say maybe we got it wrong and we have to do something different. i think they should more often be willing to do that. that is not the nature of the beast. be so that's the fed should more willing to say we need to reconsider some things and the things she talked about like in , he talked about the same things janet mentioned tweaking regulatory reform and that is as close as you will get without them being forced to do something different by congress it will be an interesting dance over the next several isths about how far congress willing to go on making changes in dodd-frank versus what the fed is willing to accept and how much they will have to be forced into much they will do on their own. that is going to be a dance we will see play out over a while. we may have a new governor coming in in randy quarles. of al have some what different perspective. it will play out in

i know you've touched on a little bit, the volcker rule. i want to go in more on that. as you know, venture capital funds and start-up companies which they invest are the innovation and job creation engines of our nation. page 77 of the treasury department's june 12th report recommends changes to the volcker rule as covered fronts provisions to assist in the formation of venture and other capital that's critical to fund economic growth opportunities. wondered, mr. secretary, have you discussed the specific provision of the volcker rule with the agencies that have authority to make amendments? if so, what's the feedback you have received? follow up on that, how does the treasury department plan to pursue an amendment to the volcker rule that could conform to existing laws. in other words, how would you encourage the regulators with rule making authority to undertake this important work? >> again, there's a two-part process we're going through. one part is working with the regulators where we can clarify the regulatory issues make clear definitions so again, people can fo

is tooer -- volcker complex by everybody's admission. more straightforward execution? that is a good idea because right now you have five or six agencies working on different sets of principles and they know it is too complex. the question is how are we going to go about it and he has proposed to make it simpler. now we have to figure out what to mean by that. >> and keep the principles in place. we don't have proprietary trading and we are not doing that, the question is proving it. ones you probably know, side is beginning to freak out about new european financial rules. how big a deal is it for be a bad? >> it is a rule change like all rule changes. it costs us money to implement it. if you really think about it, we have the number one research platform in the world six years in a row. i am sure that people will pay us for that -- >> $80,000 a year? >> i assume they will because that is how they have to get it. i think what our customers that do tens of millions of dollars with volume, to me it is not the biggest issue i have been wor

when you go back to the volcker others, this is a way that basically big money management firms can spreadrade out so they don't hit these caps that are going to be prescribed. different people finding different ways initially to try to work around some of the stringent things. nejra: this is specifically to do with trading around dark pools? jason: that's right. they are trying to introduce transparency, but dark tools is the opposite. nejra: absolutely. thank you so much. ceo's leaving his manufacturing advisory council. every ceo that drops out of the manufacturing counsel, i have many to take their place." that is the president of the united states out with a new tweet. more next. this is bloomberg. ♪ got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. nejra: equities finishing up the day in european trading. let us take you to all of the market action. equitie

percent of the thirty year to five six seven eight percent remember in one thousand indy under paul volcker rates got to sixteen seventeen eighteen percent eighteen percent can you imagine that when we first started reporting on this the last financial crisis and here alan greenspan in our last episode we were basically warning about the next crisis coming from the fraud from c.l.i.'s collateralized loan obligations and now he's saying the bond market will collapse remember we did a show for the b.b.c. world at that time and it was this a ten part series and the b.b.c. the head of the b.b.c. paul gibbs who has passed away since then but he was concerned that the financial crisis wouldn't last for ten episodes here we are. one thousand one thousand one hundred eighty episodes and we still have content to talk about notice how much less drama there is in our new sovereign currencies without central banks and that is the crypto currency markets yes there's a lot of drama in there in terms of a few drama queens but there's no like outright fraud of this sort of magnitude that can occupy one tho

leaders say they want to push ahead with tax -- wall street regulators have begun to rewrite the volcker five agencies are moving to loosen restrictions that were central to the government's response to the financial crisis. changes probably would give big banks more flexibility for handling fine trades along with investments in private equity and hedge funds. the euro area economy steamed ahead in the second quarter, gdp rose 6/10 of 1%. spain had the fastest growth since 2015. france the strongest expansion since 2011. the u.k. proposed a national investment fund to close a technology gap with the usa. $5.3 billion fund would be used to provide money and other incentives to most promising british startups. europe hasn't produced any giant tech companies like google or facebook. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm courtney donohoe. this is bloomberg. mark? mark: coming up on the european close, ferrari known for its ultra far supercars. now the company is considering , is it the right way to drive sales? the strategy

she does admit there is room for improvement in the volcker rule, and other tweaks could be made to thed-frank legislation, but in general, this is a speech about federal reserve regulation and government success in regulating the financial system. it not at all was about the economy. >> mario draghi took this opportunity not to signal what the ecb does or does not do next. he took this more as an occasion to talk about what the big challenges are globally. he is especially concerned about openness. he is concerned about protectionism. makeconcerned about how to multilateral cooperation sustainable, fair, equitable. when it comes to the currency, you can take away that either mario draghi is not concerned about the euro because he did not explicitly single it out, but on the other hand, you could say, mario draghi is going to wait for the next ecb meeting, or mario draghi doesn't want to fire up the european bull. you know how currency markets are. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. loaurewo bank noble -- the weeks

>> the volcker rule is too complex.what was the principles you are trying to stop to make it a more straightforward execution? probably a good idea, five or six agencies now working on different sets of principles, and they all know it is too complex, the question is how to go about it. we have to figure out what we mean by that and keep the principles and praise. -- place -- in place. >> as you probably know, the buy side is beginning to freak out about these new european financial rules. how they a deal is it for bank of america -- big of a deal is it for bank of america? >> it costs us money to implement it. if you think about it, we have the number one resort platform in america -- research platform in a row for six years. $80,000 per year? >> i assume they will pay. for customers who do so much -- as, to me it is not is big a fish you need to worry about, i am worried about the hurricane. it will be fine. it is disruptive. i am not sure we agree with all of them but you go on with life and people will adjust. mark:

the volcker rule said you can't do that anymore. they are saying you have to separate that business and take it off. but one thing that's interesting when it comes to banks. one of the problems they have is the interest rate picture is so bad. net interest margin which is a total turn-on i'm sure you love talking about. but it's the difference between lending money versus what they get from the federal reserve. they are pinched by government regulation and the interest rates right now. scott martin, everybody. democratic lawmakers have long complained fast food workers don't make enough money. but it could be much worse. you could be interning for a democratic lawmaker. 95% of democrats who support raising the federal minimum wage do not pay their interns at all. the list includes senators chuck schumer, kamala harris, cory booker and 20 co-sponsors of the raise the wage act. maxine waters and other co-sponsors giving their interns the old shutout. the good news is the interns will appreciate a minimum wage job after this. bre, i wi

but the volcker rule that got needsred and dodd-frank to be streamlined. is a reasonable in between point where you can do both, have protections for consumers and taxpayers and not subjugate the economy. julia: tim pawlenty, former governor of minnesota, ceo of the financial services roundtable. he is staying with us. a change of heart on wall street. why some like lloyd blankfein supported cutting taxes now back president trump. this is bloomberg. ♪ julia: this is "bloomberg markets: the trump economy." i'm julia chatterley. trump'sresident election, ceos of the thighs biggest u.s. banks joined a campaign called fix the debt which supported higher taxes if necessary. now some of the same ceos are cheering for the president's proposed tax cuts. max abelson writes about it in the new issue of business week. max joins us here in new york. back with us in washington is tim pawlenty, former governor of minnesota, former presidential candidate. here -- swerve here. was we willebt, it raise taxes if necessary but as long as they are deficit neutral. max: it is

but what the volcker rule says in effect, if you're taking positions, points of view, in anticipationr in connection with a specific client operation, that's good. if you're doing it away from that specific, it's not good. if you're a market makers sitting in the desk, it's very hard to know where that distinction is. is areally makes a market million people all at the same time, buying and selling because someone thinks it's going to go down, someone thinks it's going to go up, and then clients enjoying that moving sidewalk that's called the market. in practice, it's been very cumbersome, very hard to do, makes people who sit on trading desks very nervous, and i think it's had a dampening effect on liquidity in the marketplace. and i think the regulators appreciate it. the regulators were filling in ie regulations statutes, but think now that it's been in place for a while and they see how it operates, i think there is a consensus it has to be re-examined. alix: the question after the quarter was your fixed business. how can something not be wrong after the last two quarters? >> we d

she cited the volcker rule.s some agreement that there is stuff that can be done and perhaps the rest is a gap any political rhetoric. vonnie: her conclusion was keep commentary on, she expects that some of these things, quitting regulation will result in the familiar risks of excessive optimism leverage and maturity transformation reemerging in ways that require policy responses. she was saying that is happening now. >> that is another reason why you saw the market reaction you did because the flipside of the debate about whether to use interest rates to tighten financial conditions is that do you necessarily need to, given the regulation you put in place, to make the system saver, to the extent that the system is now safer and will be more immune to some sort of market correction. it is not going to hurt as badly as it did when we had so much debt underlying the market valuations as we did in previous cycles. vonnie: interesting times, thank you. let's turn to politics. the flipside of the going and the trump

it can be the dodd-frank, the volcker rule, neal soss is the only one i know that read the document,how the market will move people -- ,ason, out of all of mifid what's the single thing that gets your attention? jason: i have to say the single thing that gets my attention is this idea that you were referencing before the break of the morning note. i love the visual of pdf -- the cart of pdf's rolling through greater this is the bread and butter of how we get to know wall street and wall street clients get to know what banks they want to do business with. obviously there will be lots of different rules that will play in lots of different ways in terms of the logistics of trading and research. when we talk about the thos, thos, this is a big deal. tom: will it lead to concentration in new york or london or in other european geographies? seems likeertainly there will be a marketshare battle and you have seen that with him of the pricing in tell has come out from our own reporting and others where you have jpmorgan coming out last week and saying they could have $10,000 for access to rea

ways in which regulation could be simplified for small and medium sized banks, ways in which the volckerbe streamlined. there wasn't a huge difference between the way she talked about it and the treasury white paper from a couple months ago. they're her tone is different than the tone the president took on the campaign trail when she talked about getting rid of dodd frank and isn't it more where the treasury has been more recently. michael: there was a jamie diamond pushback and argued regulation capped bank lending and that has hurt the economy. where do you come down on that issue? jason: well, i think the constraints in our economy have not been lending because businesses having something that they're excited about because they want to make the investments. businesses are sitting on a lot of cash domestically, a lot of cash internationally. have a lot of access to capital markets and don't think lending has been what -- lack of lending has been what's holding things up. michael: first paper dealt with creative destruction, old companies go by the board and new companies hire and innov

it's a big article in the "wall street journal" of course outlying how they're planning to ease the volcker part of dodd-frank, which regulates how probation trade one another. there is also a part of that article talks about how restrictions on wall street bonuses are likely to be scaled back. so that is good news if you work around here, right? so if you look at financials as really have to own, look at the other side of the coin to look at biotechs and pharmaceuticals, right? you had president tweeting at merck ceo for dropping off the committee. listen, worry about those sky-high drug prices, rip-off drug prices. so you don't want to own biotech pharmaceuticals the way you want to own in this market financials. trish: you know, when you think about financials, one of the things they benefit from, robert luna, is higher interest rate environment. by most accounts expectation we will at some point be in higher interest rate environment. the fed indicated it wants to move. but increasingly people are doubting that. explain how, how the fed and interest rates are going to affect the financi

volcker, who will now meet with his counterpart to discuss ukraine, that's an important thing. there are things that can be moved forward on with regard to the russians. but you always have to keep in the back of your mind, why are the russians doing this. they are not unhappy with how things are going in the ukraine or the korean peninsula, but it's about keeping russia on the international stage. >> how much has the special counsel investigation coloring russia-u.s. relations right now? it's obviously big news here in the united states, but is it impacting the diplomatic world? >> i think it's the elephant in the room, anna. even though secretary tillerson and foreign minister lavrov are talking about north korea, there are certainly some irritants in terms of the u.s. beefing up its defenses in the region with that thaad missile system. they want to work together on syria. i think that these investigations and all of the rhetoric and all of the discussion about russia and its meddles in the u.s. election cannot color the relationship and interaction between these two leaders

wall street regulators have begun to rewrite the volcker rule.cies are moving to loosen restrictions essential to the government's response to the financial crisis. changes would give big banks more flexible the for handling trades and investments in private equity and hedge funds. the u.s. it has taken an unusual move against the head of state. they have sanctioned venezuelan president nicholas maduro, accusing him and his government of undermining democracy. that came a day after a vote with a step toward rewriting the country's constitution. the wife of a venezuelan opposition leader says he has been taken from his home by authorities and so has the mayor of caracas. alix: think you so much. for more on the story, we are joined by nathan crooks from miami. walk us through what happened the last one for hours in venezuela. hours. it was a busy 24 we saw the u.s. sanctions against president maduro. including specific targets on the oil sector that some people had been expecting. nonetheless maduro last night spoke and celebrated the sanctions an

volcker, no phd. snob lawno stop l-- that you have to be a doctor. an academic, gary's whole personality and career is built on being a very aggressive trader. speaking with his own friends from goldman sachs, he would be a bulldog leading a bunch of eggheads. like theal reserve, economist was just here who spoke so elegantly and calmly, the federal reserve ways their words carefully and decisions carefully. they take days and months and years to come up with consensus. it is slow, cooperative, rigorous -- it involves a lot of reading. personality is very much a guy, as we wrote in a profile five years ago -- he plants his thigh close to their face on a desk. the thing that is nice about gary is how he tells you he is going to kill you before he kills you. d. is not a quiet ner julia: what could be a bonus here, his understanding of the markets and what things move markets in particular, too. are we suggesting that he cannot calibrate and be more careful and cautious about the language that he uses? are because people suggesting he is brash doesn't n

joe: how much of the issue is that the wording of the volcker rule is complicated and how much is itthe underlying definition of proprietary trading is just a complicated thing to define? ben: i mean, banks would say it is both, i think. proprietary trading, business models have had two trains -- has had to change post-crisis. i don't think at this point anyone is calling for a wholesale scrapping of some of the restrictions in place. but it does seem most of the industry now has coalesced around the idea that the language has to be cleaned up. if it is clearer, how far they can go, then they will be able to execute more trades on behalf of their clients. and critics of wall street would say then they are going to be taking more aggressive positions. i think it is a wording thing and a lot of back-and-forth is going to happen over the next several months and years, because this could take a while, over what the ultimate new language could look like. so we will stay tuned, but this is kind of the beginning of a process and certainly something that could set up a big win for wall stree

paul volcker never once commented on federal reserve policy, and i will tell you, i thought that was-- a very much appreciated that. my version of the volcker rule is you don't give advice to the people who come to you >> i don't know if you're going to tell us about your investment f.a.n.g. stocks mr. chairman but i do want to ask you about this notion of the bond bubble. some out there will take a look back at the markets and point to, you know, what you say is a bond bubble. the last bubble that we saw, and say that these were created effectively by the fed injecting massive amounts of liquidity into the system. at this point would you say the fed has the power to ease this bond bubble off the ledge? or do you think it's more likely that the fed will do something that will cause this bond bubble to pop >> those are the types of questions i don't answer, because they are, in effect, commenting on current fed policy ask somebody else. >> i have a very different question one of the things that there's been a lot of speculation about is who should be the next fed chair. i won't ask yo