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dave and we continue on through the day
and uh... through the weekend through the month and all the way up until the
presidential election shirt
trying to explain to people
that there's a difference between vulture capitalism a_k_a_ leveraged
buyouts a_k_a_ private equity in other words i'll be around he got rich
contributing anything to anything
and
venture capital fashion venture capitalism angel investor
the american cap of the difference between these two things
me back to mora back in just a few minutes but uh... there's
also the issue of
how do you play football
if nobody builds a football field
very simple question david are signing is with us is a team of n stud comp
universe online senior reporter
there are an actual acidic a comma stare at every one of the program
back this product
you are you were out of peace and j_p_ morgan proves we don't need more
regulations
so let me let me just ask you this question
hike how can you play a football game if you don't have referees goal posts and
rolls
your plans are often your preparatory
undeterred by point is
amak reported that we have to let
people who take on risky
ricky uh... investments we have to a computer prices there
for their risk not
either stopped and because receive a uh... i think you'd agree a lp part
capitalism occasionally we use and win
and uh...
if we digit moral hazard
into market in this way it we're going to
either of us pay all market
but more than that were gonna let banks get away with stuff more more because we
have to pay them everytime davilla is that sounds like gibberish might my
question was
well for the two questions actually the first again you know
we wrist abolition of marketplace we allow banks to exist we define the rules
by which banks exits the banking industry would exist of government
hadn't established number one
and number two
really want
your bank
taking your checkbook deposit
and gamble in with it
and may be losing and losing all your money because that's what happened
in nineteen twenty that one basically nineteen thirty three nineteen thirty
two
so that when franklin roosevelt came into office and within a week is coming
into office
virtually every bank in the united states had failed in the reason why
was nam not just because the great depression they failed because these
banks were making money on the side
using their their passbook savings and and checkbook deposits
from average depositors to gamble in the stock market that was made illegal in
nineteen thirty five
phil gramm blew that up lead with glide gramm leach bliley wink wink
blew out glass steagle in nineteen ninety nine
made it legal again
it had been made legal
that back in nineteen twenty when our team came into office
he he'd made that perfectly legal there have been laws against it up until that
point
going to win back to the great depression of the eighteen ninety seven
or ninety three f real we hear a was but they are the one that that that blood in
a timely presidency basically
and and uh... so
you know phil gramm makes it legal for your bank to gamble with your savings
account
and
guess what it you know just like when harding decriminalizing nineteen twenty
nine years later the market crashed
the banks crashed
bush or actually is like sugar clan istration it gets decriminalizing
largely by dole gramm in his republican bodies
and nine years later the economy crashes
and you still want the banks to use your checking account my checking account to
gamble i don't get it
but that's not their status absolutely the case
well that is what you do morgan chase was doing
barrister what color
bear stearns
with an investment that no commercial bank republics because i'm not talking
about their search talking about jpmorgan chase with black your articles
about how j p morgan chase proves we'd only regulations
acknowledge had nothing to do with blood vehicle so underpinning your you're
blaming the entire pineapple collapsed on
on glad he will be blown out by phil gramm however yes none of the banks and
financial
uh... meltdown into doubt tonight had anything to be black people would not
stop any of that correct
no that's wrong
plastic or stops a substantial amount of it
but the bigger part actually was the second piece legislation a phil dot
gramm got through on behalf of his wife when he was on the board of directors of
n ron this was at this at the explicit
and specific request of can lay and that was he wanted to be able to speculate in
energy futures as if he was a bank
anne wanted to do it in a way that was in regulated by the banking regulators
so the commodities futures modernization act quick took all whole variety of
types of
of gambling of of commodity gambling
out of the purview
of the commodity futures uh... they exchange border whatever it's called the
the the oversight agency
and bus you went from zero
zero
unregulated derivatives in nineteen ninety nine nine two thousand missus
past
u_n_ from zero
up to somewhere between seven hundred and nine hundred trillion dollars' worth
at the time of the great crash and we're down to around six hundred trillion
dollars' worth right now keeping keeping in mind that g_d_p_ of the entire planet
is sixty five trillion dollars a year this is still a disaster waiting to
happen
but that's not what we're talking about here we're joined j_p_ morgan chase
jpmorgan chase lost two billion dollars and much of that money was checkbook
deposits people came to open a checking account would j_p_ morgan chase people
democratic cartridge a p morgan chase in fact there were the largest cracker
issuers the country
do you want them to gamble lane
with your money
if i didn't i wouldn't
give my money j_p_ morgan i would j_p_ morgan does another gamble my money
that's what project whittier them but that's what asap dr equity right that's
what they're risk-taking wat
built by the way of getting again tourist supposedly any clearly they
didn't give her a job at it
but they were hedging his wrist there is a nightline
they were campbell ng camacho you and i both know debit uh... they were betting
it again when i i would like to peer to peer group of weather veteran
backtracking put my money i know what they're doing
and if they want to get what they can and commercial banks workable my money's
safely at the show you're talking about bringing back glass steagle as the exact
opposite what your article says
note not
glass table because i i don't get solid glass steagle said was you have to
declare yourself either a commercial bank
any dude checking and savings in and write mortgages
or an investment bank and you take people's money and you invested the
stock market and you could charge a fee for you to pass through whatever
uh... you know it and and it used to be the merrill lynch was an investment bank
and chase
was a commercial bank and our chase is doing boats and sos merrill lynch for
that i wanted to ask you a question
it apparently two billion dollars
how would you do about this lost but you can get my people to stop this kind of a
law firm in you think that that money is available in these large hotmail you're
missing my point early
if jpmorgan chase was purely an investment bank nother words if it was
only a place where rich people put their money and said hey trying to be a good
return on investment grade average
they're working people and take their
there ten thousand dollar life savings and and gave it to j_p_ morgan chase and
j_p_ morgan chase lost it all
that's one of the risks of investing everybody understands that that's
disclosed to everybody
two billion dollars obviously the bank that's got assets over a hundred and
fifty billion dollars in stock i take down the bank
with the that bank is sitting on the passbook savings of millions and
millions of americans in the checking accounts of tens of millions of american
tunic record accounts of tens of millions of americans
and if they had made instead of the two million dollar mistake
a twenty billion dollar mistake which is by the way what happened back in two
thousand seven
then yeah they could take down all financial system and therefore
they ship since vacant they have the ability destroy our economic commons we
have an obligation
to regulate them indian just just enough
but they can't destroy s
if you think you're going to know uh... regulation
dominated the justice department looking into a turkey morgan did i i'm not sure
what the other day of very very limited powers and republicans in congress doing
everything they can do not fund the first that the few powers that they have
under
dot frank so that they can't be implemented
took a banquet two billion dollars immediately we have to say
lafayette we need more regulatory control here because bank should lose to
delhi solid surface just a good example deputy olympic were created in the most
now we should insane this ever since nineteen ninety nine that was crazy but
we just went through all the major bank are the people who caused prices and i'm
sure there's a lot more to it all the freedom if you if you put in fannie
freddie or not
under black people either weekly it would be hell in a city
company on with the other david david david r suneetha human events dot com
you can read through the article over there and microphones in washington
intersected dated for being with us