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Unidentified Speaker, -
JOURNAL" CONTINUES. HOST: DAY FOUR
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Unidentified Speaker, -
OF LOOKING AT FINANCIAL AGENCIES. WE BEGAN ON MONDAY WITH A LOOK AT THE SECURITIES AND EXCHANGE COMMISSION.
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| 00:00:16 |
Echevarria, Pedro - Host
HOST: TODAY, A LOOK AT THE FEDERAL DEPOSIT INSURANCE CORPORATION BECAUSE OUR GUEST IS THE FORMER CHAIRMAN OF THE FDIC,
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| 00:00:33 |
Echevarria, Pedro - Host
SHEILA BAIR. WELCOME. GUEST: THANK YOU. HAPPY TO BE HERE. HOST: THERE
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| 00:00:45 |
Bair, Sheila C. - Chair
IS SOMETHING NEW YOU'RE DOING, SYSTEMIC RISK COUNCIL. GUEST:
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Echevarria, Pedro - Host
ANOTHER NONPROFIT ENTITY THAT IS DEDICATED TO INTEGRITY AND FINANCIAL SERVICES. WE
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Bair, Sheila C. - Chair
HAVE A GREAT CAST OF WISE MEN AND WOMEN. IT IS GETTING BOGGED DOWN. NOT A LOT HAS BEEN ACCOMPLISHED. WE WANT TO BE AN INDEPENDENT VOICE AND EXPLAIN WHAT...
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| 00:02:30 |
Echevarria, Pedro - Host
THERE ARE SIX ISSUES THAT WE NEED TO FOCUS
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Bair, Sheila C. - Chair
ON. THERE WILL BE AT HIGH LEVEL PRONOUNCEMENT AND WE WILL FOLLOW THAT WITH COMMENTARY AND IDENTIFY ADDITIONAL PRIORITIES LATER ON. OUR FOCUS WILL BE...
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| 00:03:13 |
Echevarria, Pedro - Host
WOULD THAT HAVE HAPPENED? GUEST: THAT IS A GOOD QUESTION. I HAVE A QUESTION ABOUT WHETHER THIS WAS
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Bair, Sheila C. - Chair
SAFE AND SOUND. I THINK IT VIOLATES THE INTENT OF THE THE VOLCKER RULE. IT WOULD ADDRESS THIS KIND OF ACTIVITY. THEY TO PROVIDE MORE CLARIFY THAT ONLY...
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| 00:04:06 |
Echevarria, Pedro - Host
202-737-0001 FOR REPUBLICANS. 202-737-0002 FOR DEMOCRATS. 202-628-0205 FOR INDEPENDEN TS. YOU CAN SEND US AN E-MAIL OR TWITTER. THERE WERE ASKING MR....
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Unidentified Speaker, -
HAS IT MADE OUR SYSTEM SAFER? >> I DO NOT KNOW. GUEST: A LOT OF THESE RULES HAVE NOT
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Unidentified Speaker, -
BEEN COMPLETED YET. I HAVE
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Bair, Sheila C. - Chair
DISAGREED WITH HIM. NO, I THINK BANKS TO HAVE MORE CAPITAL NOW. THE RULES ARE NOT IN PLACE TO MAKE THE SYSTEM MORE SOUNDER. HOST: SARASOTA, FLORIDA....
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| 00:05:39 |
Echevarria, Pedro - Host
A COMMENT AND QUESTION REGARDING
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CALLER, -
THE BANK CLOSURES THAT THE FDIC HAS BEEN OVERSEEING. I THINK A OVER400 400 HAVE BEEN FORECLOSED. THERE ARE THESE LOST SHARE AGREEMENTS. MY QUESTION HAS...
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Bair, Sheila C. - Chair
ACQUIRE THEY ARE REGULATED ENTITIES. I DO NOT KNOW IT WOULD BE IN THEIR ECONOMIC INTEREST TO CONVERT A PERFORMING LOAN INTO A NON-PERFORMING LOAN. THERE...
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Echevarria, Pedro - Host
CALLERR,,
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CALLER, -
YOU'RE ON. CALLER: THERE
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Echevarria, Pedro - Host
WAS A CONTRACT ON MY HOUSE WITHOUT TELLING ME. I WENT TO THE FBI.
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CALLER, -
I TOLD ABOUT THE FRAUD. THEY SAID I HAD TO GO TO CIVIL COURT. THEY SAID, SORRY, YOU HAVE TO GO TO CIVIL COURT. I WENT TO THE IRS AND TELL THEM ABOUT THE...
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Bair, Sheila C. - Chair
GUEST: THE FDIC HAS THE
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Echevarria, Pedro - Host
AUTHORITY TO INVESTIGATE BANK FRAUD. THEY BROUGHT
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Bair, Sheila C. - Chair
A LOT FRAUD CASES AGAINST MORTGAGE BROKERS. WE DO NOT HAVE AUTHORITY TO GET COMPENSATION FOR PEOPLE THAT HAD BEEN VICTIMIZED. SOMETIMES A CELEBRANT CAN...
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Echevarria, Pedro - Host
OUR FED.
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CALLER, -
WHAT AFFECTED THE GOVERNMENT PRINTING ALL THIS MONEY - - DIDN'T THAT DEGRADE THE VALUE OF OUR DOLLAR? IS IT CONTROLLED DEFLATIONARY? GUEST: THAT IS A...
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| 00:10:47 |
Bair, Sheila C. - Chair
POLICY. THERE WAS JUSTIFICATION FOR POLICIES WHEN WE HAVE THE CRISIS. THE FED SHOULD STAND DOWN. THIS FAR OUTWEIGHS ANY STRUCTURE AND BENEFIT WE MIGHT...
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| 00:12:08 |
Echevarria, Pedro - Host
DODD-FRANK IS THE FDIC THE TOOLS TO END TOO BIG TO FAIL.
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Bair, Sheila C. - Chair
IT WILL BE GOING INTO THE FDIC RESOLUTION IF THEY GET INTO TROUBLE. BONDHOLDERS SHOULD NOTE. THE FDIC HAS DONE TREMENDOUS WORK EXPLAINING HOW THE RESOLUTION...
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| 00:12:56 |
Echevarria, Pedro - Host
THE FDIC DRAW UP A LIVING WILL AND SUBMITS TO .
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| 00:13:03 |
Bair, Sheila C. - Chair
THEY NEED TO SHOW IT CAN BE BROKEN UP AND RESULT IN AN ORDERLY WAY. I THINK THIS IS A TREMENDOUS TOOL. WE HAD INFORMATION ABOUT INSURED BANKS. ACTIVITY...
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| 00:14:02 |
Echevarria, Pedro - Host
THANK YOU FOR BRINGING THAT UP. JAMIE DIMON WAS TALKING ABOUT THE FDIC PROCESS.
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Bair, Sheila C. - Chair
HE SUPPORTED HAVING A ROBUST RESOLUTION PROCESS. HE WAS TALKING ABOUT THE FDIC PROCESS AS A BANKRUPTCY PROCESS. BANKRUPTCY DOES NOT WORK FOR LARGE FINANCIAL...
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| 00:15:58 |
Echevarria, Pedro - Host
TUCSON, HELLO. CALLER: GOOD MORNING. I AM ROB. IF YOU WOULD BEAR WITH ME.
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CALLER, -
I AM A GENIUS AND IF YOU WOULD BEAR WITH BIG YOU COULD PROBABLY SETTLE THIS WHOLE WORLD PRICES VERY SOON. LISTEN TO BE CAREFULLY. CONFISCATES -- THEY...
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| 00:17:27 |
Echevarria, Pedro - Host
THE GOVERNMENT CANNOT CONFISCATE AT WELL.
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Bair, Sheila C. - Chair
THERE ARE POLICIES THAT SHOULD BE TACKLED. ONE IS THE LOWER TAX RATE ON CAPITAL GAINS. THIS IS ONE REASON WHY THE WEALTHY PAY LOWER INCOME TAX RATE THAN...
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| 00:18:46 |
Echevarria, Pedro - Host
MR. DIMON.
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CALLER, -
HE CONTINUED TO APOLOGIZE. "I'M SORRY FOR IT. I TAKE RESPONSIBILITY." BLAH, BLAH, BLAH. IT AMAZES ME HOW THOUGHTFUL THEY WERE. WASTING TAXPAYER DOLLARS....
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| 00:19:44 |
Bair, Sheila C. - Chair
BEEN ON THE DEMOCRATIC AND REPUBLICAN SIDE, THIS IS BEEN A BIG PLAYER IN MAKING CONTRIBUTIONS TO FORMER MEMBERS. IT CREATES AN ENVIRONMENT WHERE PEOPLE...
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| 00:21:49 |
Echevarria, Pedro - Host
GUEST: I TESTIFIED QUITE A LOT AND I HAD A PRIVATE MEETINGS WITH MEMBERS OF CONGRESS. THE REGULATORS NEED TO BE THE
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| 00:22:02 |
Bair, Sheila C. - Chair
COUNTER. BANKS ARE THERE TO MAKE MONEY. WHEN BANKS GO UP THERE AND LOBBY, THEY ARE ARTICULATE POSITIONS THAT WILL HELP THEM MAKE MONEY. CONGRESS NEEDS...
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| 00:23:46 |
Echevarria, Pedro - Host
ONLY IN AMERICAN CAN SOMEONE LIKE ME BE ASKING SHEILA BAIR
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CALLER, -
A QUESTION. DOES ANYBODY MONITOR THE MAILINGS OF THE INSTITUTIONAL BANKING PEOPLE, THE OFFERS THEY MAKE AND HOW THEY ARE BEING MADE? I CAN REMEMBER RUNNING...
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| 00:24:37 |
Bair, Sheila C. - Chair
THEY DID HAVE AUTHORITY TO WRITE RULES AND THEY DID TIGHTEN UP ON THAT BUT TOO LATE. I WAS GETTING THE SAME KIND OF ADS. I WAS WITH THE FDIC, MY FAX MACHINE...
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| 00:25:46 |
Echevarria, Pedro - Host
ANDIN "USA TODAY." GUEST: RIGHT. I THINK -- MY PRIORITIES FOR
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| 00:25:59 |
Bair, Sheila C. - Chair
THE CONSUMER BUREAU IS TO FOCUS ON THE NON-BANK SECTOR. THAT IS A DIFFICULT TASK. THAT REQUIRES BUILDING A NEW INFRASTRUCTURE OF EXAMINERS AND GETTING...
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| 00:28:34 |
Echevarria, Pedro - Host
CALLER: WHAT HAPPENED TO THE OLD ANTITRUST LAWS THAT WERE THERE TO TRY TO CONTINUE COMPETITION BY NOT
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CALLER, -
ALLOWING BUSINESSES TO GET AS LARGE AS THESE BIG BANKS HAVE GOTTEN? WHY CAN WE BRING ANTITRUST LAWS BACK INTO THE SITUATION SO WE CAN HAVE MORE CONTROL...
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| 00:29:11 |
Bair, Sheila C. - Chair
LEGITIMATE QUESTION WITHOUT CONCENTRATED THE INDUSTRY HAS BECOME. YOU HAVE FOUR OR FIVE MEGA-BANKS IN THIS COUNTRY AND THEY DO COMPETE WITH EACH OTHER....
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| 00:30:05 |
Echevarria, Pedro - Host
BUT IT IS
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| 00:30:09 |
CALLER, -
RATHER LARGE. I DEALT WITH THE FDIC, THE FEDERAL RESERVE, ALWAYS UP TO SENATOR BARBARA MIKULSKI -- ALL THE WAY UP TO SENATOR BARBARA MIKULSKI. CORDIALLY...
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| 00:31:38 |
Bair, Sheila C. - Chair
YOU CAN ASK FOR AN INVESTIGATION. IF IT IS A BANK THEY REGULATE, THEY WILL INVESTIGATE FOR YOU. I'M SORRY YOU HAD A PROBLEM. BANK REGULATORS SHOULD BE...
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| 00:33:07 |
Echevarria, Pedro - Host
THE RISK FOR HIGH INFLATION IS SIGNIFICANT. I
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| 00:33:17 |
Bair, Sheila C. - Chair
THINK PENSION-FUND, BANKS ARE STARTING TO DO SOME STUPID THINGS, TRYING TO GET BETTER TERMS BECAUSE THE INTEREST RATES ARE SO LOW. WE SAW THIS LEADING...
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| 00:34:04 |
Echevarria, Pedro - Host
SUBJECT. WHEN
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CALLER, -
I GO BACK AND READ STUFF OF THE CODE OF REGULATIONS, WHAT I SEE IS A TREMENDOUS AMOUNT OF POWER THAT ESSENTIALLY SAID THERE ARE QUOTAS OF ALL OF THESE...
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| 00:35:21 |
Bair, Sheila C. - Chair
MOST OF THE BAD SUBPRIME LOANS WERE MADE BY MORTGAGE BROKERS WHO WERE SELLING THEM ON TO WALL STREET SECURITIZATION VEHICLES. CRA APPLIES TO THE LOANS...
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| 00:36:21 |
Echevarria, Pedro - Host
REGULATIONS FOR THESE BANKS,
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| 00:36:24 |
CALLER, -
HE GAMBLED WITH HIS OWN MONEY, NOT TAXPAYER MONEY. THE FEDERAL GOVERNMENT GAMBLES WITH OUR MONEY ALL THE TIME. DO THE SAME RULES APPLY? THAT WOULD BE...
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| 00:37:21 |
Bair, Sheila C. - Chair
A DAY. YOU'RE COMPARING APPLES AND ORANGES. BANKS DO THE SAME THING. THEY USE A LOT LEVERAGE. THIS IS MADE WITH THE BOSSES THAT WERE INSURED BY THE FEDERAL...
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| 00:38:07 |
Echevarria, Pedro - Host
THE NINE
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CALLER, -
STATEUNITED STATES CURRENCY? GUEST: THAT IS DONE BY MARKETS. IT CAN BE INFLUENCED BY HOW MUCH CURRENCY IS BEING PUMPED IN BY THE CENTRAL BANK.
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| 00:38:28 |
Bair, Sheila C. - Chair
THE MARKET MECHANISMS DETERMINE CURRENCY RATES BUT IT IS INFLUENCED BY HOW MUCH IS BEING PROMPTED BY THE CENTRAL BANK. HOST: A QUESTION BY EMMA. GUEST:...
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| 00:38:51 |
Echevarria, Pedro - Host
THERE IS A LONG-TERM RECORD BY THE FDIC,
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| 00:38:57 |
Bair, Sheila C. - Chair
YOUR MONEY IS ALWAYS PROTECTED. YOUR MONEY IS SAFE NO MATTER WHERE YOU HAVE IT. HOST: ONE MORE CALL. JOHN FROM LONG ISLAND, NEW YORK.
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| 00:39:16 |
Echevarria, Pedro - Host
CALLER: I WONDER IF YOU COULD ANSWER A QUESTION ABOUT CITADEL BROADCASTING. IS THAT REGULATED BY EITHER OF
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| 00:39:26 |
CALLER, -
THESE AGENCIES? GUEST: NOT THAT I'M AWARE OF. THE LACK OF ACCOUNTABILITY HAS BEEN DISTURBING.
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| 00:39:37 |
Bair, Sheila C. - Chair
I AM GLAD THAT SHAREHOLDERS ARE BECOMING MORE ACTIVE. I OF DONE A COUPLE OF COLUMNS IN "FORTUNE." SHAREHOLDER VALUE FOR THE MEDIBANK IS MUCH WORSE THAN...
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| 00:40:38 |
Echevarria, Pedro - Host
HAVE BEEN MET WITH FINALIZED RULES. WE HAVE BEEN DOING THIS FOR SEVERAL YEARS. GUEST: SOME OF THE IMPORTANT RULES HAVE NOT BEEN FINALIZED. I
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| 00:41:00 |
Bair, Sheila C. - Chair
THINK GETTING BACK TO OUR DECISION AND THINGS THAT DROVE THE CRISIS, THEY NEED TO BE FIXED. HOST: HOW WOULD YOU KNOW IF THE SYSTEMIC RISK COUNCIL WILL...
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| 00:41:21 |
Echevarria, Pedro - Host
THE RULES DONE. HOST: SHEILA BAIR, THANK YOU FOR JOINING US.
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| 00:41:28 |
Bair, Sheila C. - Chair
THIS IS PART OF A LONG RANGE DISCUSSION THAT IS CONTINUALLY.
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| 00:41:33 |
Echevarria, Pedro - Host
THANK YOU. [CAPTIONING PERFORMED BY NATIONAL CAPTIONING INSTITUTE] [CAPTIONS COPYRIGHT NATIONAL CABLE SATELLITE CORP. 2012] . >> SO
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.