i will say one other thing, changes to the volcker rule are minuscule.is really, i know the trump administration is trying to take, do victory laps they have rewrote this thing in major way. they really haven't. if you read the rule, yes, banks, certain small banks are exempted, thank god. they don't do any proprietary trading anyway. if you're a small bank that takes a lot of risk, the fed can still have authority over you. doesn't matter how many assets you have. it is the fed's determination. for example, if jon corzine came back and reinvented mf global which he helped blow up a couple years ago and was taking tremendous risk the fed could theoretically, not theoretically, according to this rule, even though it's a small entity, regulate it. trish: would that have prevented something like long-term capital? you look even today, right? >> long-term capital could come under the volcker rule and be restricted and come under fed guidance based on this law. trish: okay. >> so could blackstone. so could carlisle. it gives the fed tremendous leeway to do it

so the volcker rule, at least the core of the volcker rule says no more proprietary trading. we had a disaster back during the housing crisis. a lot of these banks were engaging in speculative activity, very, very highly speculative and risky activity in terms of credit default swaps and all that. a lot of these banks got in trouble. we had to bail them out. so we said no -- the volcker rule basically said no more proprietary trading. so my question is, how do you streamline no more proprietary trading? how does that actually work? >> well, again, without wanting to, you know, i don't want to directly front run proposals we're working on for other regulators and that aren't yet -- >> just conceptually then. don't go into their stuff. but if it's a stop sign, don't proprietary trade, don't put the american taxpayer at risk, how do you streamline that? >> so the key issues will be around the definition of proprietary trading and providing enough certainty that institutions, in fact, know what it is that we will consider to be proprietary trading. >> so you're going to change th

he put in place volcker but as the book describes, it is not just hiring volcker. there were a series of other decisions. reagan gets credit for sticking with volcker. someone haddi to put volcker in there in the first place. so i think one argument here that would be nice to win is that the fight against inflation started under jimmy carter. he put everything in place. and, the rest is history. history doesn't get written that way. >> before stu close this is, i put one other issue on the table because it has been a important part of my life since, it wasn't aa focus, i don't think of the carter press did not sy but the foreign intelligence surveillance act passed during carter's presidency, based on recommendations of the church commissions to correct abuses of nix on administration by using our intelligence assets improperly. not only set up a legal framework which survives, but it also set up the intelligence committees in the house and senate. one of the huge tragedies in the last month is the demise of the house intelligence committee where i spent eight year

let about the volcker rule you know we did a headline just a moment before you came on. with us about the meeting coming up next week at the fed does the changes in the law signed by the president today moot any read relaxation by fed and other financial regulators the law permits banks with less than ten billion to to gamble at will provided the gambling is for it is limited to five percent of assets although five percent is basically the capital they have they can blow through that. what the regulators are expected to announce on may thirtieth in a joint release presumably is a new proposal to relax the volcker rule generally under the existing statute of the two thousand and ten law we're not sure what it will be we worried that it will increase the latitude of banks to claim that hedging. the proprietary trading is actually hedging that's where banks in by one product or or or sell a particular security to hedge their position and yet another security we think this may be basically carte blanche especially if as an issue that you worked on they enable portfolio hedgi

jesse: there's many agencies involved in the volcker rule. it's an alphabet soup of d.c.ies, the securities and exchange commission, the office of the comptroller of currency, they all have to submit proposals for public comment and this is a particularly controversial rule that will likely give tanks and investor advocates, anti-wall street people like elizabeth warren months to weigh in on this. we might not see a final rule until the end of the year or potentially even into 2019. david: presuming that they cut back on some of these requirements, is this something that saves money for the banks because they won't be the documentation? or will they change their behavior? will they be venturing their own capital, which is what the volcker rule was supposed to discourage? on the margin i mention it will be a ramping up of risk for the same reason that, as it stands now, banks have huge compliance department were -- departments where they think there are these gray areas where they don't think it violates the volcker rule, but don't take the risk because while the trading o

congress is poised to make changes from all of volcker.egree that to what banks that small are making speculative bets. there is obviously some problem here that congress is trying to fix. shery: this seems like the first that in a long process. where does it go from here? month, there are five agencies responsible for volcker. it is a total washington alphabet soup. they will come out with a proposal. they will seek public comment for days and or months. they will rewrite the rule to address issues that they think are valid. at some point we will get a new lcker rule, which wall street will almost certainly welcome. shery: thank you for that. coming up, a union representing at&t employees has filed a complaint accusing the company of illegally withholding information about how it plans to spend its windfall from the u.s. tax overhaul. we will give you details. this is bloomberg. ♪ shery: this is bloomberg markets balance of power. i am shery ahn. david: i am david westin. shery: we're seeing u.s. stocks near session those right now. inry

a number of dangerous provisions reduced supervision for some of the largest banks removal of the volcker rule for banks with less than ten billion dollars in assets and a host of anti consumer provisions that make consumers more exposed to predatory lending . bartlet now when you know when we worked on this and you and i both worked on this you thankfully are continuing to work on it but after we got done with the bill in two thousand and ten the one thing that i thought maybe they had a point on some of the smaller banks seem to have some concerns now that may not that may be the below ten thousand banks you're talking about but it seemed to me that you know as a result. the regulation that there were some there was a lot of consolidation in the smaller banks etc but other than that i didn't really see anything in the whole dodd frank wall three thousand plus pages that was really a problem and the banks have been making money hand over fist but are there any worthy provisions is what i'm talking about the smaller banks is there any sense to that or anything else of the bill that you th

federal reserve promised to plan to make life easier for the big banks by loosening the so-called volcker rule. live picture of the fed. put into place during the financial crisis to prevent banks from taking too much risk and speculating in the markets. in other words, trying to prevent the next bubble if it were to take place with banks trading their own money. fed proposed tailoring the compliance program for financial firms, meaning they won't be under such a watchful eye of the regulators, however, this won't allow them to go crazy and gambling a bunch of money. they will low are the cost of compliance and a bit more in the change. we're watching, the board of governors at the fed spearheaded by fed chair jerome powell to put the new proposal out for comment. once all the comments are received, the fed will then decide whether and how to finalize the new rules. the financial stocks are absolutely loving this, even though it's not their dream, not getting exactly what they want, total elimination of the volcker rule, but rising treasury yields, spyder financial up 2 percentage points.

but on wednesday the us federal reserve will hear arguments that the volcker rule went too far.f the federal reserve buys this argument, and of course they will be watching shares of bank companies that could be impacted by any relaxation of those regulations. these are banks, of course, like goldman sachs, jp morgan and citigroup. kim gittleson there. joining us is mike amey, managing director and portfolio manager at pimco. as we have seen, not a straightforward picture in europe, but overnight in asia, yesterday in europe, all reacting strongly to what is happening in italy, so let's look at the huge debt that italy has, alex pose—gil as the rest of the world? so the issue with italy, as you say, their total debt is 130% of annual output. the challenge with this is that italian interest rates we re very this is that italian interest rates were very low, which makes paying a large amount of debt relatively straightforward. the challenges, as interest rates go up, it becomes much harder to pay that debt. the last time italy got into serious trouble, the interest rate got up to

coming up, a rewrite of the volcker rule is set to loosen strengths on wall street.rsion of regulations could make it easier for banks to cash in on the exam juncker google talk about that next. this is bloomberg. ♪ ext. this is bloomberg. ♪ ♪ shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david westin. time for our stock of the hour. shares of the regional banks are plunging. the worst day since the brexit fell off in june of 2016 to that was after they announced a $4.7 billion acquisition of and be financial. abigail joins us. the street is not like this deal. why not? abigail: they don't like the deal. first, let's set it up. a big up -- it is one of the larger regional banks in the country. most of their deposits and ohio, 50% or check out illinois, florida. they are acquiring financial for their presence in chicago. this will make them the second biggest bank in chicago behind jpmorgan. as for why the stock is down, i should mention and the financials shares are scoring -- soaring. this stock getting hammered. harvey langi, bloom

rule n that is the rule named after joe volcker that limits proprietary trading by banks here is the new federal reserve vice chairman for bank supervision talking about this proposal a few minutes ago >> i view this proposal as an important milestone in comprehensive volcker rule reform but not the completion of this it takes place on a variety of fronts and eni courage all sides to weigh in how it can be approved and complying with requirements >> give you a look at the complicated changes. there will now be three categories created on the firm's trading activity and what happens is it gets harder and harder, there are more restrictions and requirements as the banks get bigger of trading that will be subject to the harshest requirements proprietary trading. no long assumed for short-term assets in fact, in a lot of places, compliance is more assumed than not. quick headlines from the beige book the fed says the economy is expanding moderately manufacturing in half of the districts shifted to a higher level and rising production led to something we've been talking a lot about. highe

the volcker rule is one piece of a much bigger picture. that bigger picture is very, very important. vonnie: professor, we had wti crude about $70 for several sessions, and it has been rising. how much is something like rising oil price going to play into inflation in the united states? where do you see inflation in the next quarter and the rest of the year? alan: well, i cannot give you a number to the decimal point, but it does add to inflation. blissfully -- by the way, the ecb does not do this, but they should -- blissfully, the fed makes its policies largely on core inflation. that is, inflation not counting energy prices. also, by the way, not counting food prices, but that hasn't been an issue for many years. energy has been an issue. when the price of oil goes up, you see headline inflation rise above core inflation. when the price of oil goes down, as it was for a while you see headline inflation fall below core inflation. a crucial thing for the central bank, i have always believed and the fed believes, is to keep the eyes focuse

the federal reserve board meets today to start rolling back the volcker rule. regulation is designed to keep banks from suffering outside losses because of speculative that's with their capital -- bets with their capital. the royal bankm of scotland, the ceo resigned to pursue another opportunity. stevenson was seen as a potential replacement for ceo ross mcgowan. more boeing 787's are likely to be grounded because of problems with its rolls-royce engine. it will happen before next month's deadline for mandated inspections for durability problems. the number of grounded 787's will rise to about 50. that is your bloomberg bigots to -- business flash. david: italy continues to go through its political turmoil as every day seems to bring a new twist to the president's attempt to form a government. we welcome bloomberg reporter ann-marie on the ground. coalitionpopulist disagreeing with itself. >> that is right. probably while you were sleeping, early in the morning, they were talking about possibly an 11th hour last-ditch effort to ask the former government, but t

is really a proposal to simplify the application of the volcker rule.the proposal says banks can engage in prohibited proprietary trading congress. -- proprietary trading. congress is the only one that can say that. rulemakingconvoluted that clearly had negative impacts on markets and things that congress said they wanted banks to be doing, and trying to simplify and make those rules more efficient. we believe it is a very positive proposal that will allow banks to get back into the business of market making, underwriting and that congressway clearly intended when they implemented the rule in the first place. david: let's get to the heart of what you said. these rulesthat if were to go forward and be adopted, it would save the banks a lot of compliance money. there's a lot of bureaucracy they have to have to comply with it. beyond that, how would they do things that they are not doing without engaging in speculation, which is exactly what the government did not want them to do. >> i wouldn't even necessarily say it is about money as much as it is about

. >> wall street has been waiting for congress to cut back on the volcker rule and now it looks likeoking to take the first step. doing away with the presumption that things health less than 60 days are speculative. >> so, they have long held this view at the volcker that --nsactions violate the van the ban on prop trading. wall street making trades for themselves rather than their clients. unless you could get authorization from regulators that a short-term trade was to hedge a position or to make a market for a client, the presumption was that those traits were banned. that is now being flipped. the presumption is most short term trades are in compliance with volcker and the only way you get in trouble if you are a bank is if a regulator comes and challenges you rate later on. >> confirmation hearing underway for richard carrin, vice chairman before the senate banking committee. michele bowman is also fielding russians from lawmakers. this is the flag and apple pie kind of hearings are a you don't want to take a controversial stance third on the fed agrees their balance sheets shou

republicans are also using relief for community banks, as their guise, as a way of undermining the volcker rule, threatening the stability of the financial system and the entire economy. republicans' willingness to abandon vulnerable americans and jeopardize our entire financial system to further enrich wealthy wall street banks is astounding. today the fdic reported that banks helped by a massive tax cut earned record profit notice first quarter of this year -- profits in the quarter of this year. they've done that over the past three years as well. time and time republicans put the wall street and rich first and families last. the american people deserve a congress that looks after them. not one that sells out and leaves them high and dry. this is a raw deal for the american people. americans deserve a better deal, better jobs, better wages and better future. democrats are fighting to put that economic power back. who has the leverage? put the leverage back in the hands of america's great middle class, america's working families. so just remember what they were willing to do leading up t

he picked paul volcker to head the federal reserve.don't think he anticipated how aggressive he would be. he would raise interest rate as full points at a time. forget the quarter point. >> he did. and i think -- >> neil: did he anticipate that, knowing that would hurt him? >> yes. one of the great things -- we inherited high inflation. it got worse in our administration. with the iranian revolution and the cut off in oil, it went into the stratosphere. he said to it's point blank, neil, i've tried everything else, wage and price guidelines, anti-inflation. i'm going into an election to take the tough medicine that paul volcker has told me that he's going to do, which is tighten the money supply, squeeze inflation out, raise unemployment, raise interest rates and carter said, i know this may effect my re-election but i don't want my legacy to be this high inflation and i'm willing to lose if this is what it means. the ultimate beneficiary of that two years later was ronald reagan and the country. but carter was willing to take that and

asy cannot hold it as much they could in the past because of the volcker rule's. -- role. -- rule. yields in really good the u.s., comparable to europe. as that yield has come a, up,sury -- has come treasuries have done well. david: it is short on the two-year. what is going on with the yield curve? gina: it is continuing to flatten. it is getting into the sub speak. officials are starting to notice . the curve is flattening. how much do we want to press limits on flattening? we know what an inversion means. i do think you will get to a point later this year where the fed has to make tough decisions. frankly, as long as the yield curve is just flattening, it is a great environment for stocks and equity markets with respect to the curve. it is the point where it inverts that we have to worry. there is sensitivity on the investor base toward these auctions. that is not something equity investors normally pay a lot of attention to. david: we will hear from jay powell on friday. bloomberg's gina martin adams and vince, thank you for being with us. coming up, u.s. china trade relationsh

. >> wall street has been waiting for congress to cut back on the volcker rule and now it seems they taking the first step. explain exactly what the regulators are going to propose. this viewve held that transactions violates of the ban on prop trading. mrs. wall street making trades for themselves rather than clients. get authorization from regulators that a short-term trade was to hedge a position or make a market for a client, the presumption was those trades were banned. now that is being flipped and the presumption is most short-term trades are in compliance with the volcker rule and the only way you get in trouble is if they come in challenge later on. >> confirmation hearing underway for richard. fed governor also fielding questions from lawmakers. this is the flag and apple pie kind of the year, you do not want to take a controversial stance. everyone on the fed agrees that their balance sheets should be made up of treasuries. and have mortgage bonds they had to restart the mortgage market and they agree, they want to get out of that business. the rest of richard clare's test

then we have curt volcker. united states special representative for ukraine negotiations at the state department and he is the executive director of the mccain institute for international leadership at anthony a state university. span ining to a member of the national security counsel and assistant secretary in the european bureau. we are deleichted that both of you could join us, so i thought we would just jump on in with some questions. what has been the impact op russian foreign policy? as a negotiator if the ukraine issues, the agreement. have you seen an impact sanctions have had because of the ukraine? >> yes and no. >> so if you're looking for well did russia change its mind, no. obviously. so it didn't have that kind of democrat make impact. on the other hand, i think it is a significant impact in the day-to-day way in which russia deals with the rest of the world. let me give you this example. we're all familiar with the nerve agent attack in the uchl k. >> yeah. >> and what happened there as i look at

. >> wall street has been waiting for congress to cut back on the volcker rule and now it seems they taking the first step. doing away with the presumption that -- explain exactly what the regulators are going to propose. >> yeah, they long-held this view that transactions violate the ban on private prop trading. this is wall street making trades for themselves, rather than the clients. unless you can get authorization from regulators that a short-term trade was to hedge a position or make a market for a client, the presumption was that those traits were banned. now, that is being flipped, and the presumption is most short-term trade are in compliance with volcker, and the only way you get in trouble if you are a bank is if a regulator comes in challenges you later on. >> the confirmation hearing underway. a nominee for fed governor also fielding questions from lawmakers. >> this is the flag and apple pie kind of year you do not want , to take a controversial stance. everyone on the fed agrees that their balance sheets should be made up of treasuries. they have mortgage bonds and the

now, that is being flipped, and the presumption is most short-term trades are in compliance with volckere only way you get in trouble if you are a bank is if a regulator comes in challenges you later on. >> the confirmation hearing underway. president trump's pick for fed vice chairman before the senate and committee. a nominee for fed governor also fielding questions from lawmakers. he is saying he prefers the fed. >> this is the flag and apple pie kind of year, you do not want to take a controversial stance. everyone on the fed agrees that their balance sheets should be made up of treasuries. they have mortgage bonds and they had to restart the mortgage market and they agree, they want to get out of that business. the rest of richard clare's testimony has consisted of is looking at what he has said about the fed in the past. they should try to push unemployment as low as they can raising -- without raising inflation, and the fed has a duty to remain apolitical. all kind of a thing you would expect from any fed nominee. >> oil rising to $80 a barrel in london for the first time since 20

he appointed paul volcker to head fed knowing because volker told him that he was going to choke the economy, squeeze inflation out, raise interest rates, and a lead to higher unemployment but eventually lower inflation. the meeting that they had in oval office is really a classic. volker is full taller than carter 6'7" a giant man, bald, glasses scowl and carter describes vividly in the book how -- he was over a couch and in oval office carter said i felt like he was in a interviewing me for a job the not other way around but he did appoint him and let him do his job and supported that tough monetary policy without any complaint. even during an election year. he was not the ultimate beneficiary because the tough medicine only worked during the reagan administration. and for the nation thereafter and this is em l blemmatic of so much of what carter did, tough decisions which had payoffs only later. his foreign policy achievements were even more significant. camp david will stand as landmark of personal dloam city he poured over intelligence reports to understand. he took them to gett

banks that mike it easier, bringing us to the volcker rule and the potential changes we might see.w, potentially they are going to make some changes to make sure they are helping clients without doing prop trading. andibility with risk limits a presumption at a trading position for you within 60 days being proprietary. spoke about what the rule meant for the bank. it's not material. it's an efficiency benefit for the markets. the sack change morgan stanley's fortunes, but it's a small part in it should happen. joining us.ine mann how does the deregulation story help with lending? lending has been on the rise from the tier of banks that are below the threshold for some of these most significant regulations and the change in not the volcker rule, but the other regulation a couple of weeks ago altered the capital requirements and will further allow the smaller banks to continue on lending. the big banks, keep in mind, they have a different business model. it's not so dependent on lending. rule -- so, the volker will not have that impact on their. some, if they do cut back is a going t

is the current volcker rule good or does it stifle banks?le is a distraction. i don't think it does much to the big banks. i think it occupies a lot of our air time, a lot of our discussion it's very complicated to implement. the single best thing we could do, i'd be happy to get rid of the volcker rule -- that's a trade i'll take. >> is that going to happen >> well, not in the near future. but let's not give up. >> neel kashkari, minneapolis fed president in bismarck, north dakota i never thought of it, but i love it. thanks for having you. >> good to see you >> we'll take it great stuff, brian thank you very much. our brian sullivan steve leisman will be live from the dallas fed tomorrow. he'll be speaking with robert kaplan, rafael bostic, and patrick harker wow. got a big lineup there you can catch it all tomorrow morning. >>> there's still a whole lot more ahead right here on "the closing bell." >> much more on another day for the markets that left investors questioning their next move. plus why amazon suddenly finds itself facing criti

board has taken the most concrete step yet towards vlocker --k the volcker rule, governors voted to significantlyeduced compliance costs of financial firms. global news 24 hours a day, and at tic toc on twitter, powered by more than 2,700 journalists and analysts in over 120 countries. you can find more stories on the go.mberg at top the really coming through in european and u.s. markets boosting asia today. we do have every index moving higher today, except for the indonesian-jakarta index. we had bank indonesia raising rates for a second time in as many weeks. a 10th of is up by 1%. the large-cap stocks in china are leading the recovery. having a look at stocks we are watching. energy stocks is leading the rebound, along with financials. saying hong kong could be worth four dollars 20 per share, a little bit lower than where it is at the moment. reply answer is up by 9.4% -- 9.4%.ce is up by and goldman sachs has come through with a list of stocks they think you should be buying including a market, spirit maker. the demand from china and supply will boost this stock. there is a 20% target price

in financial news, the federal reserve and banking regulators are slated to roll back the volcker rulekey financial regulation enacted after the 2008 financial crisis. the rule bars banks from using customers' deposits to make their own risky bets. it was one of the key aspect of the dodd-frank wall streetet reform and consumer protection act and was named after former federal reserve chairman paul volcker. watering down the rule would allow wall street's giant banks to again engage in a wide range of risky trading, using customers' own money. meanwhile, on monday, president trump nullified rules aimed at preventing discrimination in auto lending. and today, the house is slated to vote on legislation that would roll back parts of the dodd-frank act for thousands of smaller to mid-sized banks. the united states and china have agreed to hold further talks as the world's two largest economies step back from the brink of a global trade war. over the weekend, treasury secretary steven mnuchin said the threatened trade war would be put on hold, backing the u.s. away from opposing tariffs on

the volcker rule is making sure that banks are there for hedge funds. market maker, not to take extraordinary risk with their depositor's money. >> banks, if they want to trade, should have a part of the bank that does that. should they be doing that with the deposits of average americans? that's the issue. and if they make mistakes so peril that threatens the institution. or if it's a threat to the economy, should banks be accountable for the losses. >> the answer to that should be no. >> especially when average homeowners are not getting bailed out of mortgages because of making bad choices and not getting bailed out for their bad choices, should banks be? there's a la jegitimate argumen that banks shouldn't be constrained needlessly for being creative and entering markets, lending the life blood of the united states economy. but trading is a very different activity in the markets. >> being creative and marketing, cdo-squared and triple wrapped with one side to dusseldorf is probably not what we should be doing. >>> we are not going to end the show on

the volcker rule was part of that. to back off now because things look ok is dangerous.r reasons. we still have central banks in extremely loose monetary policy setting. the bank of japan, the ecb, the fed is moving the direction but is still very loose. is something the fed could regret in a few years time. what i do like is that they have asked for a consultation and advice. that buys some time and i think the fed will use that time to get through some rate increases and see where we settle. i think the fed is probably going to be a little more cautious about loosening things too quickly than perhaps it would have been in the past. matt: there are a number of other regulatory bodies, five in total. theill talk more about financial industry. you will stick with us. bob janjuah, senior independent client advisor at nomura. morext, we will listen to of what james gorman has to say. the markets may have called, but questions still's w -- still swirl about italy and europe. we bring you more of our exclusive interview with the ceo of morgan stanley. this is bloomberg. ♪ mat

versus volcker and the list goes on and on and on. we were talking a lunch and he was arguing some cases. he said i think i've argued about every cause in the constitution except the bail cause any make it a chance to do that. he has argued more supreme court cases since 2000 a lawyer in or out of government. he's also argues significant cases that the lower courts including walker versus cheney come the u.s. versus miss alli, nfl versus greedy. but not to deflate things. [laughter] paul is a distinguished lecturer in law at the georgetown university law center for his taug in vario capacities since 1998. a distinguished lecturer at georgetown university and serves as senior fellow for the law center supreme court institute. ladies and gentlemen, probably for most solicitor before the supreme court in our lifetime, paul clement. [applause] >> thank you very much for that wonderful introduction. shows what an open-minded groupware that a cardinals fan can introduce a brewers fan. it is a wonderful thing. thank you for having me. i want

ambassador curt volcker joined other foreign policy experts to discuss how imposing sanctions impacts russia's foreign policy. it's part of a forum hosted by the center for strategic and international studies. it's about an hour and 15 minutes. >> good afternoon. am i on? >> what's new? >> well, good afternoon, everyone. i know we're pulling people back from a coffee break, but we are delighted to get started here. good afternoon. i'm heather conley. i'm senior vice president here at csis and matt has been my partner this crime in this to talk about four year of sanctions. you just heard a rich conversation, now we're going to turn to the impact of sanctions on

before volcker, the high-risk trading had become huge for big banks. >> the trump administration is planning move forward with plans to um pose stiff tariffs on european steel and aluminum. barring last-minute deal, an announcement is expected sometime today. the president allowed the tariffs in march but allowed time for several countries and the eu to work out a deal. >>> the dow rose 306 points, the s&p 500 yum jumped 34 point, and the nasdaq added 5 points. >>> it's raising its first quarter profit forecasts. dick's online sales jumped 24%. its decision to stop selling assault rifles and guns under the age of 21 did not appear to hurt business. >>> consumer reports is now recommending tesla's model 3. initially they did not recommend buying the electric car because of poor braking, but tesla updated its anti-locking braking software. to address the problem. the magazine still has concerns about wind noise and touchscreen controls. >> and walmart is offering its employees a new perk. workers will have an opportunity to obtain a bachelor's degree or supply chain education. to attend the em

federal reserve is considering modifying it that code for relaxing by the way what is called the volcker rule which bans proprietary trading that's trading for your own book trading on behalf of the bank the proposal that expected to be considered next week on may thirtieth the role was created as a part of the two thousand and ten dodd frank financial reform law i worked on it and bars banks from using funds protected by deposit.

it is watering down the volcker rule. the rule was a landmark piece of dodd-fra dodd-frank. for years, the banks complained it was too complex. it eases oversight and keeps the strictest rules with the most trading. banks no longer have to prove they are making a trade. that burden shifts to regulators. the change will undo the uncertainty and complexity that make it difficult for banks to comply. how difficult really is it? critics call it a give away to big banks. they are making record amounts of money. is dodd-frank really holding them back? this is the latest move by the trump administration to ease financial regulations. last week, congress voted to roll back other parts of dodd-frank. look at that. profits soared to a record $56 billion in the first three months of 2018. >> you ask the key question. do they need more relief? >> they say they do. the fed chief appointed by the president says they do. they will roll back. >>> the white house briefing room and benji was a kid reporter for "time magazine." his question called sarah sanders to choke up. >> we recently had

it reduces the number of banks that are facing the tougher to has, smaller banks get relief from volckerrelief for custodial banks. >> the negative effects of the regulation in terms of cost, that has been a big one. especially bait for the smaller banks that do not have the leverage so that relief is important. it saves them some of the compliance cost, but the other aspect is, it makes it more beneficial for these banks to emerge. -- to merge.ge smaller banks will get relief under this bill but that does not hide the fact that what this bill does as an unnecessary gift to the larger banks. you are talking about to release up to $250 billion in assets. cutting import duties on cars from 25% to 15%. around the world rallying on the news. which automaker benefits the most? be theill probably makers of the high end, premium car manufacturers. rover, thed manufacturers that do not have a large production facility in place in china and rely more on importing vehicles into the market. one of the highest profile glass ceilings in finance has been smashed. the new york stock exchange promoted s

paul volcker. >> volcker came in and saved things, but created havoc in the markets. >> this is differente don't have jimmy carter in the white house, et cetera it's a different mode. right now it's not the 2% inflationary target, it's putting as many nuts in the tree as i can for when the winter comes. >> how does it work in the room? does everybody go around and say this is what i think >> you start out with the staff briefing you do the domestic economy. the international economy. markets. >> all by the staff? >> yeah. conglomeration of staff. >> you ask questions >> you start with the desk report first you instruct the new york fed desk as a committee what to do in the interim they give their report you have the other reports >> as they're reporting do you ask questions? >> sure. i did. >> then what happens >> then you have the go-around for the economy. the presidents go first. the governors go second with one exception. the second most powerful person -- >> are you reading a script? >> depends on the person i never did. matter of style. the second to last to go is the head of the ne

the federal reserve board meets today to start pulling back the volcker rule, designed to keep banksing outsize losses. renewings says it is ceo spoke at an investor conference. he says mcdonald's still needs to boost customer count in the u.s. the company will invest in new u.s. story models this year. and a surprise to pressure at the royal bank of scotland. the cfo has unexpectedly resigned to pursue another opportunity. according to people with knowledge of the matter, he was seen as a potential replacement for the ceo ross mcewan. and that is your "business flash." coming up in the european close, 35 minutes until the end of trading for the we are seeing a fate in the rally, but nonetheless, ftse holds onto a .4% gain. germany'swell after job data came in better than expected. we saw the first quarter gdp figures coming in weaker than anticipated. close eye on italian stocks as they continue to rally. we're seeing a bounce after the storm that was yesterday. banks-- italian higher. keep an eye on italian bonds, too. mark barton up next. this is bloomberg. ♪ mark: 11:00 a.m. in n

reducing the number of banks that are facing the tougher regulations, smaller banks get relief from volckerd also there is some relief for custodial banks. >> if you think about the negative effects of the regulation just in terms of cost, that has been a big one. it has been especially big for the smallest bank that don't have the big base to leverage the costs, so that relief is important. it does, you know, it does save them some of the compliance costs, but then the other aspect is, it makes it perhaps more beneficial for these banks to merge. >> it is a good thing, right, that some of the smaller banks, and we are talking about the smaller community banks, will get some relief under this bill, but that should not hide the fact that what this bill does it is an entirely, unnecessary gift to the larger banks. the smaller banks under $100 million in assets, you are talking about to relief up to $250 billion in assets. rishaad: china is cutting import duties on cars from 25% to 15%. auto stocks around the world are rallying on the news. which automakers are set to benefit the most from thi

about to get a reprieve from the volcker rule. u.s.reparing to presumptionrictive that most short-term trades violate the posts recession rule. italy, populists trying to form a new government are headed into overtime pay the leaders of the five-star movement are trying to nail down the final details of a coalition plan. the president agreed to give them more time. their plan is to cut taxes and rollback pensions, which could be destabilizing. global news 24 hours a day on air, and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. tom: thanks. equities, bonds, currencies, commodities. futures are negative. they are doing this through what is called a yield flip. we have been having curve flattening with churning yields. this morning, decisively, curve steepening, up one point. 46.30 basis points. we are waiting for a stronger dollar. screen, the vix, 13.15. the 10 year yield, that should be green. a higher yield by two basis points come up to 3.02.

fed reserve will water down the volc volcker rule. these are very profitable.e banks open to big losses. that is what caused the crisis. banks complained for years this is complecomplex. this change is easing oversight. banks no longer have to prove they are making a trade. that shifts to regulatoregulato. this will undue the complexity for the banks. critics call it a gave away to big banks. they are making record profits. how difficult is it to make profitable moves when you are highly profitable? this is the latest move by the trump administration to ease regulations. congress voted to roll back part of dodd-frank. let's talk about the profits. profits soared to $56 billion in the first three months. global stocks are fearing that radical parties could gain ground. u.s. stocks closed higher. dow and s&p both up 1.3%. microsoft shares rose. the third most valuable company in the world. edging out google for the top spot. >>> the nation's largest private employer is walmart. walmart has a new perk for workers. college tuition. employees pay $1 a day. it is wal

hill, the committee's majority whip, and the author of the amendment dealing with the volcker rule. the speaker pro tempore: the gentleman from arkansas is recognized. mr. hill: i thank the speaker. the i thank the chairman of the full committee for -- the speaker. i thank the chairman of the full committee for having us on the floor today to talk about s. 2155 i've heard that all cold water from the opposition today. but this is the definition of bipartisanship. 67 votes in the senate, in this environment in this town, is bipartisan. and so many of our bills emanated here in the house with strong bipartisan support. as a former commerce chairman banker, i ommunity have seen firsthand, mr. speaker, the negative effects of the dodd-frank act since its passage in 2010. i know we have had banker, i have seen firsthand, mr. speaker, 140 hearings how to make sense of improving dodd-frank. to right size the regular another system for small financial institutions. allowing our community banks and credit unions to actually serve our small businesses and consumers. rather, spending time on t

the federal reserve has s votedo loosen the volcker rule, a key financial regulation enacted after the 2008 financial crisis. the rule b bars banknks from usg customers' d deposits to m makee bank's s own ririsky bets. it was one of the key aspects of the dodd-frank wall street reform and consumer protection act. this comes as banks are taking in record profits. $56 billion during the first three months of this year. in news from afghanistan, u.s. forces reportedly killed dozens of taliban leaders while they were holding a meeting in helmand province last week. according to the u.s., the dead included the deputy taliban shadow governor of helmand. russian journalist arkadad babchenko showed up at a press conference on wednesday, just one day after he was reportedly murdered. he revealed he had worked with ukrainian security services to fake h his own death in an effot to catch those who were trying to kill him. he apologized to his friends and wife who were not informed of the plan. >> i have buried both friends and colleagues many times and i know this horrible feeling of having to bu