indeed, major american financial institutions, including the former wachovia bank have allegedly not been performing due diligence on their customers. congress should address these problems. senate bill 1483, the incorporation of transparency and law enforcement's assistance act is bipartisan legislation that will establish official ownership registries that can be -- the bill is hardly supported by the departments of justice, treasury and homeland security and many law enforcement organizations also endorsed the bill. by implementing s-1483, not only will the nation's security be stronger, the united states will secure the moral high ground needed to encourage it's allies and global fora like the global financial task force in paris, the g-8 and g-20 to consider ownership registries as a new international norm. primary point i want to make today is that the mechanisms in the global financial system, that permit the laundering of illegal ivory proceeds of the same mechanisms, used by victor boot, drug cartels and terrorist groups. shell companies, secret bank accounts and a host of o

would wachovia not have bought a lot of crappy loans? what does glass-steagall do that would change anything? >> remember, this is a 30-year process in the making. if you back to 1986 when banks were allowed to start getting bigger and getting into businesses that they were otherwise prohibited to get into? all of this happens over time. if anybody had been paying attention all the along the way, a lot of banks would not have failed and a lot of things would not have happened because they wouldn't have been possible. i think it was also the failure to supervise not just the elimination of glass-steagall that ultimately led to these problems. >> ron, one of the headlines that you're going to see is them playing with the depositor of money again. do we need to completely separate merchant and investment banking? >> what is the cio? they are running a bank and trying to offset their risk. so what is a chief investment office? what side is it? >> it depends on what they are doing. proprietary capital they are not supposed to be trading under

wells fargo bought wachovia and did everything to help. that should be recognized too. but i understand that frustration, and i understand the frustration in equity. therefor i'm in favor of progressive taxation. >> the buffett rule? >> i don't understand the buffett rule, exactly. >> more taxes on capital gain. >> i think most people on wall street would be happy to have the bush tax cut go away and pay higher capital gains if they thought it was part of a plan to fix everything. i do believe that. that's why, in effect, taxes is not the right thing. as a matter of fact, i think we should appeal to people's better nature and say, you're well paid, you benefitted from this great country, you feed to give a little bit more for now to help lift the country up. i do understand the anger, but we need solutions. finger-pointing, scapegoating, yelling and screaming, i've never seen -- >> what about accountability? there are stories about the bank fees, you know, atm fees being passed on to consumers. more regulation, well, it's going to be passed on to the consumer. you know,

wells fargo bought wachovia and did everything to help, financing cities, states, hospitals. that should be recognized too. i understand that frustration. i understand that frustration in equity. we've become a little more inequitable. i don't think it's a good long-term thing for society. i'm in favor of progressive taxation. >> the buffett rule, for instance. >> i don't understand the buffett rule exactly. >> more taxes on capital gains. >> i think most people on wall street would be happy to have the bush tax cut go away and pay higher capital gains if they thought it was a part of a plan to fix everything. i do believe that. that's why, in effect, attacking is not the right thing. they're willing to do their part. they should appeal to people's better nature. you're well paid. you benefitted from this great country. you need to give a little bit more for now to help lift the country up. anyway, i do understand the anger. but we need solutions. you know, finger pointing, scapegoating, yelling and screaming, never seems to help. >> how about accountability? stories about th

october 3, wachovia one of the five biggest banks in the united states, came under serious pressure. it was acquired by wells fargo, another mark -- large mortgage provider. this gives you some sense. all these firms i'm talking about were among the top 10 or 15 financial firms in the united states in a similar thing happened in europe so this was not a situation where only small banks were affected. that was a problem too of course but here we have the biggest largest most complex international financial institutions at the brink of failure. now, the lessons from the great depression going back, first remember the fed did not do enough to stabilize the banking system in the 1930s of a lesson there is in the financial panic, the central bank had to lend freely according to bagehot's rules to hault runs and try to stabilize the financial system. and a second the second lesson of the great depression the fed did not do enough to prevent inflation and the contraction of the money supplies of the second lesson of the great depression is you need to have accommodated monetary policy to he

stevens used to run equities at wachovia. he now runs the hedge fund.>> we both know you for years. let's talk about that tension between the cfo of the company, the company itself and the underwriter. should morgan stanley have more effectively pushed back or did they simply misjudge demand and that's why they may not have puched back. >> given the hiech hype that surrounded the deal going back 6 months to a year, the level of oversubscriptions and tranks actions have become essentially meanless. i meaningless, because everyone piles on in the deal. i don't envy the job morgan stanley had. it is a great firm that has done some good transactions in the past. in this particular case, they misjudged the real demand. >> how do they do that? they know their way around an ichlt po. >> the level of oversubscription gets to a point where it is ridiculous. to judge what people's real demand is going to be is difficult. raising the price and the size components on the transaction as aggressively as they did also created a problem that you have seen play out in t

all banks needed to be bailed out and a lot of things like bear-stearns, and wells fargo he bought wachovia >> clayton: is this a reason to bust up big banks? you argue in part that this issue that jamie dimon is dealing with is a product of big regulation. >> yes, nobody has been tougher on the bad guys than me. i wrote the definitive work on lehman brothers and i'm here to tell you if you can picture in your mind in 2007, picture like 18 people sitting at a table and now picture today maybe five or six at the same table. essentially, regulation, basel 2, 3, making the basics reduce leverage is good. but that means that less banks in the world have big balance sheets to do certain types of trades. so, essentially the players at the table are fewer and they're holding more chips than they were in '07. >> clayton: why is that a bad thing? you can hear americans waking up this morning and flipping on the tv i'm not the wall street type, but these are the guys that got us into the mess. right. >> sure. >> clayton: and largely were betting on the bad practices as related to the the mortgage-bac

major american financial's institutions including the former wachovia bank, citibank, a chess -- hsbc bank have not been doing adequate due diligence on their customers. congress should address these problems. senate bill 1483 incorporation transparency, law enforcement assistance act is bipartisan legislation that would establish beneficial ownership registry that could be accessed by law enforcement and tax authorities. the bill is hardly supported by the department of justice, treasury, a homeland security supported.heartily the nation's security will be stronger in the u.s. will secure the moral high ground needed to consider beneficial ownership president -- registries as the new international norm. a summary points by want to make today is that the mechanisms in the global financial system that permits the laundering of illegal ivory proceeds are the same used by drug cartels than terrorist groups. shell companies, secret bank accounts, and host of other opaque entities treating a structure that facilitates trafficking of all types and adversely impacts u.s. national security. a