Former Fed Chairman Bank Rule Ignored - YouTube

paul walker is kinda guy who surround the federal reserve and i remember back

then now that he was considered right way

uh... he had has held onto the savings acquisitions and is now considered

who look what happened today they gave up a walker

now absolutely not

what change was the political spectrum in washington where a guy who had free

market principles is not considered way too liberal

okay any still have those inside free-market principles i don't know why

consumers have abandoned him

why do you know why their leadership has

because they get paid by the banks of paul volcker

thinks are destroying the free market

now that might be putting too much was it is not because he never said

destroying let me tell you exactly what he did sit right he says look

uh... the vocal that was his idea which is

you have to separate

the proprietary trading that the banks do on their own for their own profit

away from the depositors' money

because she's in favor of the free market you want to do all the gambling

that you need to do because you've got enough money to back it up

they're not using the depositors' money

on anyone's other side of the bank protected where people putting their

money and they get it back

makes perfect sense

everybody in the country should be in favor of it that's what's called a vocal

of course the republican leadership

says oh absolutely not why because the big banks make seventy seven percent of

their money

from proprietary trading

soul remained almost all their money from that gambling may be on the other

side

and they want to use your money the deposit or money as collateral

that's what walker was a prayer prevent he's go terribly wrong money

so they

president mama tried to put this in the reform

they call the boca rolled well of course one of a new they watered it down

that night as the republicans but also the democrats

so well what do you mean now paul walker reasons quote

i don't like it but there it is

i don't have much simpler god loves us here for page bill that that is

proprietary trading and makes the board and chief executive responsible for

compliance and i'm strong regulators

at the base in comply with the spirit of the bill

they'd go after them

that is not what we have well we have is a bill

but as senator ted kaufman former senator from delaware explains

is riddled with what they call exemptions and uses exemptions are poor

pronounced loophole

so one giant lupo lives

if you want to do proprietary trading meaning your own trading your own

gambling

on car seats

that is exempt

but currency derailment is

are almost the largest market that there is a directs

scorpions and the largest market what do you have left

well you have a budget on the loopholes basic if they want to be a money make

him up market maker i should say

well look we're just trying to find another side to our clients are class

wanna make that that and there's nobody on the other side

so balaji workers or can we do we took the other side

so if you were just doing this as a as a market baker

that loophole is so large

they can do it every single trade

that they knew today under that exemption

analyst goes on and on

so that's why paul volcker says all these exemptions are rediculous and all

it does is allow them to do the same trading he's absolutely right second of

all but he says that he would do far more

capital requirements

he said give money market funds are gonna continue providing

funding for regulated banks ok meeting

banks that are backed up with taxpayer money

f_d_i_c_ insured he says they should be subject to capital requirements

deposit insurance protection and stronger oversight of their investments

unify with the positives money

well that i need to know that you have enough money i can tell you make a net a

hundred-dollar bad with a buck in the back

made ecologically a ten dollar bet with and only a dollar in the bank

but i saw it on her own bed preg

my right now the banks say no i don't want any of that regulation

and they basically don't have that regulation

because the problem has not been fixed paul volcker the heart of a satellite

and then finally says uh... yet the strain of the fannie and freddie

announcers okay

and began couldn't be more i think a summer school goal of the blame fannie

and freddie for all the problems

should totally agree

but of course they'll legislative leaders the republicans do not agree at

all because in reality they love

fannie and freddie they'll over the government guarantees by the scrapping

origins of the banks of made

and paul volcker makes the point that ninety-nine point nine percent of

america should agree with why should american taxpayers back up your mortgage

so bankamerica as an example makes a mortgage

and they said we think that this is good enough

to give this guy money so they can buy this house

wire they allowed to pass it off the fannie and freddie something goes wrong

the taxpayers the fact

and then they make money in the middle

if they're not even to take the rest of are they making any money

it doesn't make any sense that's not the free market

that's buying if politicians so you can make money for something you're not

actually do it

and this thing the taxpayers of the bell

paul volker is just as conservative

justice for free market is is ever met

than all liberals conservatives libertarians

showed anything on the facts probably wanted re with them

the voters

but the leadership in both parties

can stand paul volcker they like high shop shirish

shirish all-volunteer nominated him as a top adviser and then didn't talk to

inform

he almost left

his roles and budget is not even talking to me and finally they said all right

fine

but because i watch you on and we got em

pretend that we're not with the banks will do the vocal rule and look at what

they did to the vocal

they'd be audited

so special useless

and as loopholes

that encompasses

no doubt one hundred-percent of the cases who the banks want so and then

or mama and the republics of the banks exactly what they want

and they don't listen to liberals or conservatives

that's a stop using taxpayer money basically dekhti bailing out the back