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Speaker 1: Bloombo Business News twenty four hours a day, if Bloomberg

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Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow

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Speaker 1: and the Bloomberg Futures Report brought to you by Interactive

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Speaker 1: c n E Group U s Dock Index futures are lower,

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Speaker 1: with the SMP five hundred points to slip from a

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Speaker 1: ten month high and its speculation equities may have run

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Speaker 1: too far, too fast given the lackluster prospects for global growth.

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Speaker 1: Who checked the markets every fifteen minutes throughout the trading

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Speaker 1: day on Bloomberg SNP eveny futures down nine points down,

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Speaker 1: eveny futures down sixty three and naz documitty futures down

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Speaker 1: seventeen decks. In Germany's down one point four percent, ten

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Speaker 1: your treasury up ten thirty seconds, the yelt one point

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Speaker 1: six six percent. Nine X screude oil down one percent

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Speaker 1: or ninety one cents to fifty dollars thirty two cents

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Speaker 1: of Arrel coll Max School. That will changed up ten

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Speaker 1: cents to twelve sixty two. The euro and dollar thirteen seventeen.

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Speaker 1: Again when oh six point six one, that's a Bloomberg

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Speaker 1: business flash. Tom and Mike Carolaska, thank you very much. Well,

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Speaker 1: it is the talk of Wall Street these days. The

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Speaker 1: Financial Choice Act sponsored by Representative Jeff Penciling, who is

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Speaker 1: the chairman of the House Financial Services Committee. Basically he

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Speaker 1: would repeal Dodd Frank and replace it. Good morning to you,

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Speaker 1: Mr chairman. Can you can you help us elucidate this

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Speaker 1: for for listeners? Uh? What first? Is the biggest problem

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Speaker 1: with Dodd Frank that you want to address? Well, the

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Speaker 1: biggest problem is it has failed. We were told that

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Speaker 1: Dodd Frank would lift the economy, and instead we're limping

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Speaker 1: along and about economic Well can I stop you there?

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Speaker 1: That that one's a new one to me. I hadn't

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Speaker 1: ever heard it would lift the economy. I heard it

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Speaker 1: would uh make the make a safer from you should

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Speaker 1: read the legislative history. There were several promises that were made.

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Speaker 1: One would that it would lift the economy, which it

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Speaker 1: clearly has not. As paychecks have stagnated, savings have shrunk.

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Speaker 1: We were told it would help consumers, and instead free

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Speaker 1: checking at banks has been cut in half. We have

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Speaker 1: fift fewer credit card offerings that cost two hundred basis points,

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Speaker 1: more many auto loans or upsive hundred dollars of the

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Speaker 1: list goes on. We were told it would end too

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Speaker 1: big to fell, but instead what we've seen after Dodd

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Speaker 1: frank in the data is indisputable. The big banks have

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Speaker 1: gotten bigger, the small banks have gotten fewer. We're having

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Speaker 1: historic volatility in illiquidity in our corporate bond markets, one

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Speaker 1: of the most incredible capital channels we have for our economy.

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Speaker 1: So it hasn't ended too big to fell. It hasn't

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Speaker 1: made our economy more stable. It hasn't made us more prosperous.

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Speaker 1: So yes, what's wrong with it? Everything's wrong with it. UH.

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Speaker 1: It has failed. And so it's time for a new

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Speaker 1: paradigm UH in banking and in capital markets. And so

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Speaker 1: we are offering an alternative that says that we need

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Speaker 1: a banking system that has a whole lot more private

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Speaker 1: capital and a whole lot less federal regulation. It's about

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Speaker 1: economic growth for all bank bellouts for none and Dodd

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Speaker 1: Frank is economic growth for none and bank bailouts for all.

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Speaker 1: So it's a eighty degrees removed from the failed Dodd

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Speaker 1: France Act. Can I ask you what your vision of

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Speaker 1: the banking system is? What should banks be in this society? Well, clearly,

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Speaker 1: they are an incredible part of our free enterprise system,

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Speaker 1: which is the greatest channel for prosperity UH and material

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Speaker 1: happiness that the world has ever known. They have to

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Speaker 1: be a financial intermediary in order to UH channel vital

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Speaker 1: capital into innovation. And again, what we've seen since Frank

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Speaker 1: is that entrepreneurship and small business lending is practically at

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Speaker 1: a twenty year load due to the weight, the volume,

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Speaker 1: of the complexity, of the uncertainty of the regulatory load.

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Speaker 1: So I'm not a banker, but I want bankers to

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Speaker 1: be able to be bankers. Most of America has never

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Speaker 1: wanted to occupy Wall Street. They just want to quit

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Speaker 1: bailing it out. So we know there's a safety net

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Speaker 1: with respect to access to the discount window. There's a

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Speaker 1: safety net with respect to deposit insurance. So what we're

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Speaker 1: saying is looking at historic um market based levels of capital,

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Speaker 1: we provide a very simple leverage ratio for banks, and

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Speaker 1: they have a choice. They can either stay in the

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Speaker 1: current system or with a whole lot more private investor capital,

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Speaker 1: they essentially have an equity financed Dodd frank Off ramp

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Speaker 1: so that they can go out and invest and lend

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Speaker 1: and help propel our economy. Now you met with the

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Speaker 1: perspective nominee of your party for President, Donald Trump. Is

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Speaker 1: he going to endorse your legislation? He's definitely no fan

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Speaker 1: of Dodd Frank. Well, I did not ask him to

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Speaker 1: endorse the legislation. I simply wanted to brief him on it.

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Speaker 1: Um Like a number of Republicans, I've had some disagreements

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Speaker 1: with our presumptive nominee on things that he has said

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Speaker 1: and done. But I can tell you this much. We

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Speaker 1: have a lot of common ground in believing that we've

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Speaker 1: got to end taxpayer funded bellouts, which Dodd frank codifies

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Speaker 1: in the law. We have to grow this economy in

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Speaker 1: One of the major impediments we have is Dodd frank.

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Speaker 1: So I don't care to give a blow by blow

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Speaker 1: description of the conversation, but I would say that that

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Speaker 1: Mr Trump was pleased with what he heard and should

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Speaker 1: he become president. I think we have a lot of

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Speaker 1: common ground to move forward on. Uh, to help lift

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Speaker 1: people out of poverty and reinvigorate middle income people by

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Speaker 1: getting rid of Dodd. Frank Sherman Answerling, I know, October

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Speaker 1: twenty two is an important day. That's you're fighting Aggies

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Speaker 1: play Alabama. You know it has been a little difficult,

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Speaker 1: to say the least. Have you had a difficult conversation

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Speaker 1: with one James Diamond about your legislation. Have you talked

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Speaker 1: to Jamie Diamond about how he would amend Dodd Frank Uh, Well,

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Speaker 1: I hadn't. I don't quite know what that has to

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Speaker 1: do with the Aggie Obama football game. It's just a

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Speaker 1: big day. I mean, when you sit down with Jamie Dimon,

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Speaker 1: it's a big deal. Like Alabama Aggie said. Uh, the

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Speaker 1: short answer is no. So we have just released the

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Speaker 1: outline forty eight hours ago. We expect to have legislative

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Speaker 1: texts that will circulate broadly throughout the nation here within

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Speaker 1: the next couple of weeks once we finalize it, and frankly,

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Speaker 1: we will look forward to receiving input from all quarters

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Speaker 1: of the economy and look for ways um that it

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Speaker 1: can obviously be refined and play with The short answer

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Speaker 1: is now down with him on this. I want you

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Speaker 1: on the show with Mr Diamond. If Jamie Diamond could

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Speaker 1: get on a stage in London with the Chancellor of

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Speaker 1: the Exchequer, he can get on a stage with you

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Speaker 1: in testimony. That's all I'm suggesting is that conversation I

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Speaker 1: think would be good for the entire nation, whatever their

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Speaker 1: political personally. Not enough time with the Chairman. We have

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Speaker 1: to have him back soon to continue to discustion about

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Speaker 1: his legislation, because obviously it's going to be important going

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Speaker 1: into the next session of Congress. Chairman Hunsterling is the

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Speaker 1: Republican from College Station in Texas. This has been great

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Speaker 1: Haley Barber and Jeff Hunsling, and of course we are balanced.

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Speaker 1: We will get others of a different persuasion on through

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Speaker 1: the coming days. Michael McKee and Tom Keane Bloomberg Surveillance

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