WEBVTT - US Senator Elizabeth Warren of Massachusetts Talks Big Banking, Debt Ceiling 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Elizabeth Warren, on the

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<v Speaker 1>other hand, is not as we told you. Will be

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<v Speaker 1>joined here by the Democratic Senator from Massachusetts, having issued

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<v Speaker 1>a blistering statement following this FED decision, Kaylee, saying the

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<v Speaker 1>entire Federal Reserve Board, including appointees of both parties, should

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<v Speaker 1>be embarrassed. She's with us now, the Democrat from Massachusetts,

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<v Speaker 1>live from Capitol Hill. Senator, it's great to see you

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<v Speaker 1>back on Bloomberg TV and radio. You are demanding five

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<v Speaker 1>years of exam reports from Wells Fargo, and I wonder

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<v Speaker 1>what leverage you have here how far you would go

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<v Speaker 1>to get them. Would you threaten to hold up the nomination,

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<v Speaker 1>for instance, of Michelle Bowman as the Fed's Vice Chair

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<v Speaker 1>of Supervision to get them.

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<v Speaker 2>Look, I'm already opposed to having Michelle Bowman as the

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<v Speaker 2>Vice chair for Supervision. This is someone who has never

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<v Speaker 2>seen a regulation for a giant bank that she wasn't

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<v Speaker 2>willing to cut or undermine. But understand this about Wells Fargo.

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<v Speaker 2>I think before you decide to lift this big penalty

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<v Speaker 2>that's been in place for Wells Fargo for seven years now,

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<v Speaker 2>you should ask for maybe one year in which they

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<v Speaker 2>aren't caught breaking the law. Remember that in January of

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<v Speaker 2>this year, the SEC tagged Wells Fargo for cheating investors.

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<v Speaker 2>In December, the CFPB tagged Wells Fargo for cheating American

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<v Speaker 2>consumers fight it with way to the tune of over

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<v Speaker 2>eight hundred million dollars. And in September the OCC tagged

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<v Speaker 2>Wells Fargo for money laundry. So we have the three

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<v Speaker 2>big banking regulators all saying Wells Fargo's out there, still

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<v Speaker 2>breaking the law. And then a report just a few

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<v Speaker 2>weeks ago by former and current Wells Fargo employees saying

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<v Speaker 2>that the very activities that Wells Fargo is engaged in

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<v Speaker 2>seven years ago, where they created fake accounts for people

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<v Speaker 2>and so on because they were pressing their employees to

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<v Speaker 2>get those numbers in to get more people signed up

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<v Speaker 2>for more accounts, that that same activity is occurring today.

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<v Speaker 2>And those are the circumstances under which the Fed unanimously says, hey,

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<v Speaker 2>Wells Fargo, get on out of here. You don't need

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<v Speaker 2>any extra regulation.

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<v Speaker 3>Now.

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<v Speaker 2>That just doesn't wash.

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<v Speaker 3>Do you see any potential benefit here, Senator though, of

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<v Speaker 3>Wells Fargo being able to better compete with other big

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<v Speaker 3>banks for the competitive landscape to change in that way.

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<v Speaker 2>Look, I'm all for competition, but I don't think that

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<v Speaker 2>cheaters ought to have a leg up in competing. And

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<v Speaker 2>that's really the part to remember here about Wells Fargo.

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<v Speaker 2>The reason we want to have good enforcement of all

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<v Speaker 2>of the banking laws is that the banks that actually

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<v Speaker 2>follow the law, the banks that aren't engaged in money laundering,

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<v Speaker 2>or the banks that are not cheating their investors, that

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<v Speaker 2>those banks ought to be able to play on a

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<v Speaker 2>level playing field. And Wells Fargo, we know starting seven

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<v Speaker 2>years ago that Wells Fargo was so boosting its profits

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<v Speaker 2>and by the way, it's CEO compensation based on cheating

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<v Speaker 2>American customers. And in fact, it was so awful what

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<v Speaker 2>they did that it wasn't just civil penalties. They were

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<v Speaker 2>in violation of criminal laws. So the idea that, boyd,

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<v Speaker 2>we want to get them right back out there competing

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<v Speaker 2>with the other banks at a time when their own

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<v Speaker 2>employees are saying, hey, they're back to doing the stuff

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<v Speaker 2>they were doing before. That's that's not the direction we

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<v Speaker 2>want to go.

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<v Speaker 1>Senator Elizabeth Warren Live with us on Bloomberg TV and

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<v Speaker 1>Radio I'm going to ask you to walk with me

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<v Speaker 1>here for a second, Senator, because I don't know if

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<v Speaker 1>Donald Trump is watching us right now, but the President

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<v Speaker 1>is posting about you right now, just on truth Social

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<v Speaker 1>Donald Trump writes, quote, I am very pleased to announce that,

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<v Speaker 1>after all these years, I agree with Senator Elizabeth Warren

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<v Speaker 1>on something. The debt limit should be entirely scrapped to

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<v Speaker 1>prevent an economic catastrophe. He's reposting you here where you

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<v Speaker 1>suggest as much. This is less than twenty four hours

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<v Speaker 1>after Elon Musk said shame on Republicans who passed the

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<v Speaker 1>reconciliation bill in the House. You're finding yourself within a

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<v Speaker 1>twenty four hour period, agreeing with Donald Trump and Elon Musk.

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<v Speaker 1>What's going on around here?

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<v Speaker 2>Well, look, I think on the debt ceiling, I've been

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<v Speaker 2>on this for many, many years. The debt ceiling is

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<v Speaker 2>just something that's been used as leverage in negotiations. The

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<v Speaker 2>United States should never never threaten to default on its debt.

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<v Speaker 2>We should get rid of this debt ceiling altogether. When

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<v Speaker 2>we pass a bill saying that we're going to do

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<v Speaker 2>a certain thing, that is our saying, and we're going

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<v Speaker 2>to pay for it. That's what the United States government does.

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<v Speaker 2>So I think that Donald Trump and I, hey listen,

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<v Speaker 2>I'm ready to join up with him and make that happen.

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<v Speaker 2>We need to get rid of the debt ceiling altogether,

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<v Speaker 2>not extend it. Not say ooh, while this is going

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<v Speaker 2>on this budget negotiation, let's just roll out a few

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<v Speaker 2>trillion dollars more in the debt ceiling. Nope, that has

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<v Speaker 2>gotten us into trouble before, it continues to get us

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<v Speaker 2>into trouble. Donald Trump is right, let's get rid of

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<v Speaker 2>it all together.

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<v Speaker 3>Well, So, Senator, if we are to see if the

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<v Speaker 3>Senate and House cannot get this reconciliation bill through in

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<v Speaker 3>time for the mid July request the Treasury Secretary has

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<v Speaker 3>made to avoid bumping up against the X state, would

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<v Speaker 3>you support an initiative like that, separately, a legislative effort

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<v Speaker 3>to eliminate the debt ceiling before that X state comes.

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<v Speaker 2>Now, look, we should do it now. There's no reason

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<v Speaker 2>to delay. Donald Trump. That's exactly right on this. It's

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<v Speaker 2>what I've been arguing for literally for years, and that

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<v Speaker 2>is get rid of the debt ceiling. It's serving no

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<v Speaker 2>function except for holdout parties. To try to use in negotiations,

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<v Speaker 2>and that makes no sense, that doesn't serve our nation.

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<v Speaker 2>But we should do that now. It doesn't need to

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<v Speaker 2>be tied to anything, it doesn't need any special date

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<v Speaker 2>on it. Ask the Republicans, they're the ones in control

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<v Speaker 2>of the floor. Let's bring that to the floor right now.

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<v Speaker 2>It's a simple piece of legislation. I'm ready to go

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<v Speaker 2>on it. I think it's the right thing for us

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<v Speaker 2>to do.

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<v Speaker 1>Senator, I want to ask you, from your perch on

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<v Speaker 1>the Armed Services Committee about what else we heard from

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<v Speaker 1>Donald Trump today. He had an hour and fifteen minute

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<v Speaker 1>long call with Vladimir Putin. At the end of the call,

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<v Speaker 1>he wrote about it and said that peace is not

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<v Speaker 1>imminent in Ukraine. He did say, however, that Putin will

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<v Speaker 1>have to respond to the recent attack on the airfields

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<v Speaker 1>that Ukraine conducted over the weekend using this wild scheme

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<v Speaker 1>with drones that had been smuggled into the country. What

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<v Speaker 1>do you make of this assessment and what is Ukraine

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<v Speaker 1>in for in the days ahead?

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<v Speaker 2>Right? Look, Vladimir Putin has been playing Donald Trump, and

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<v Speaker 2>pretty much everybody in the world can see that's just

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<v Speaker 2>me seeing it, not just people in the United States

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<v Speaker 2>see it. Leaders around the world see it. And it

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<v Speaker 2>looks like Donald Trump is beginning to figure that out

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<v Speaker 2>and starting to push back against Putin. We owe it

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<v Speaker 2>to Ukraine to do everything we can to support them

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<v Speaker 2>in their fight. They are on the front lines fighting

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<v Speaker 2>for democracy, and they are in the front lines against

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<v Speaker 2>an expansionist Russia. Understand this. If Ukraine falls and Vladimir

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<v Speaker 2>Putin gets either a big chunk of it or all

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<v Speaker 2>of it, He's not stopping there. He's coming for more

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<v Speaker 2>and more and more, because that's who Vladimir Putin is.

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<v Speaker 2>It is important right now to help Ukraine push back.

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<v Speaker 2>They are on the front lines fighting the war for

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<v Speaker 2>democracy on behalf of all of Europe, on behalf of

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<v Speaker 2>the United States, on behalf of freedom loving countries everywhere

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<v Speaker 2>in the world, and we should give them all the

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<v Speaker 2>support we can.

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<v Speaker 3>All right, Senator, we appreciate you joining us on Bloomberg

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<v Speaker 3>TV and radio. The Democratic Senator from Massachusetts, also ranking

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<v Speaker 3>member of the Senate Banking Committee, Elizabeth Warren with us

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<v Speaker 3>here on balance of Power.