>> guest: there wouldn't have been the dodd-frank. when you blame the private sector for what happened and when you say, well just insufficient regulation we could have stopped this all from happening, but the regulators didn't have enough power things like that then you get dodd-frank and from my perspective, dodd frank is the reason why we have had such a slow recovery from financial crisis and the recession that followed. this has been the slowest recovery since the mid-1960s by a wide margin. why is that? what happened that made such a sniffs normally you have a big drop, you then have a fast recovery v-shaped kind of recovery. didn't happen this time and the reason i think is dodd frank. we have spent a lot of time trying to blame the private sector for what happened here trying to impose new regular layings on them creating a lot of uncertainty for them forcing them to reduce their risk-taking, all of those things have caused our economy to grow much more slowly than it normal lay would after a recession. and the problem is that

>> there wouldn't have been a dodd frank. because when you blame the private sector for whatever and when you say well it was just insufficient regulation and we could have stopped it from happening but the regulators didn't have enough power. then you get dodd frank and it is the reason we have had such a slow recovery in my opinion from the financial crisis and recession. this has been the slowest recovery since the mid-1960s by a wide margin. why is that? what happened to make such a difference? normally you have a big drop and then you have a fast recovery from it. a v-shape recovery. didn't happen this time and the reason i think is dodd frank and we have spent a lot of time trying to blame the private sector for what happened here. trying to impose new regulations on them and creating uncertainty for them. forcing them to reduce risk taking and all of those things caused or economy to grow a much more slower rate than it normally would after a recession and the problem is that if we had actually understood what happened

made of dodd frank rules. that govern the largest financial institutions in this country and i'm just asking, do his criticisms reflect your criticisms or the criticisms of the federal board? >> i think i personally and the board considered dodd frank to be a very important piece of legislation that has provided a road map for us to put in place regulations. >> i appreciate that, madam chairman, but i just need a yes or no. do his criticisms reflect your criticisms? >> i'm certainly not seeking in any way to alter dodd frank at this time. it is -- >> then let me ask the question differently. do you think it's appropriate that mr. alvarez took public positions that do not evidently reflect the public position of the fed's board, especially before an audience that has a direct financial interest in how the fed enforces its rules? >> well, i think the fed's position and my position is that we're able to work very constructively within the framework of dodd frank. to tailor rules that are appropriate for the insti

do we not include dodd-frank? >> i would say at the occ as part of our ongoing process, we look on a regular basis whether rules are appropriate in terms of still relevant and we will make changes if we need to without making for the next agrippa process. >> thank you very much for being here. senator thank you. >> thank you, mr. chairman. i think you're giving a theme here. that this is not a partisan issue. this is not something that there is a lot of disagreement on this committee about. we're deeply concerned about the status of community banks in this country. deeply concerned about the what we hear back home in terms of overregulation, compliance burden extra paperwork. what needs to happen, and i look at this in kind of two different ways. first, you've got the obligation to make sure that your rules make sense, to make sure that you're doing the look back when you're enacting these rules, are' actual lay sensitive to some of the issues like appraisals, some of the issues like extra compliance and burden. t

i heard you say dodd-frank and other statutes would be durable. i'm not sure that's good enough for some of us. you said it's not meant to undermine our regulatory structure. i'm hoping you can paint a slightly more granular picture of that. we would be quite concerned if all of a sudden you know after the work of this body -- >> i agree. >> we find ourselves, dodd-frank being amended because -- >> i totally agree. i don't think we face the risk. i mean if you look at you know one of the issues foreign banks being subject to dodd-frank, that's well based in u.s. law. there's not -- that's not at risk of being, you know reversed in an investor state dispute. it's really meant to deal with kinds of policies that are not based in the kind of legal foundation that a law like dodd-frank is. >> so you don't regard this based on what you know, and you probably know more than most of us about the negotiations around tpp in particular you don't believe that there is a meaningful risk that a trade agreement would essentially undo the work of this body? >> n

dodd/frank is another with a regulation. but one piece of dodd/frank is about providing information whether consumer or banks providing a clear picture to provide that information is their value in that for the governor in knowing what is happening? and. >> guest: the government always knew that there is nothing that is completely do in terms of regulating the financial institutions. the only areas that are is that financial stability oversight council to designate institutions as systemically important to have them regulated by the fed the matter their regulator before that is one but then the regulators of the futures business of credit defaults swaps is another but they always had tremendous power about what was happening in the baking or financial system. >> can now housing sector of what was going on? >> if you looked you will find if we have a situation as we had the floor with a government agency in charge of the housing business as the one responsible with department of housing and urban development people said this

secretary lew: congressman, if you looked at dodd-frank and the implementation of dodd-frank, there has been a great deal of attention paid to treating community banks differently and appropriately so from the larger money centered banks. i think as you noted in your question, the trend of consolidation preceded the passage of dodd-frank and i haven't read the harvard study you're describing, but i'd be happy to give you a response after i looked at it. mr. lucas: please do. secretary lew: you would have to look at that trend and see if would accelerated because it was accelerating before. not just at the smaller level, it's happened for not necessarily good reasons. you had a lot of troubled institutions that had to be taken over. so i think the challenge we have is to always be mindful of the fact you can't treat main street bank, $5 billion bank, the same as a regional bank or the same as a money center bank. we tried not to. we're always attentive how we can do better and we have a lot of flexibility and the -- >> we will leave the treasury secretary's testimony here. you can contin

let's talk about dodd/frank is an important piece of legislation. would you kindly give some indications as to how well it is performing, and some indication as how dodd frank could have made a difference when we went through the 2000 a crisis. aig was styled an insurance company. could you police elaborate. >> we have made the enormous amount of progress. therefore, the economy is safer. we have taken action that raises the capital held by banks so that they are able to absorb the risks they are taking on. we have put in place consumer protections that did not exist before to prevent the kind of practices that have metastasized in the free financial crisis days. i think that if you look at the backend, when institutions hit a difficult time, we put into place practices through procedures like orderly liquidation authority to make sure that insured can manage without having to turn to taxpayers for a -- the kind of support required in 2008 and 2009. internationally, we worked to bring global standards up. i know that this committee asks a lot of que

so what could we pursue that you would not label as unraveling dodd-frank. for example in an appearance before the committee last july, it was labeled as arbitrary, the 50 billion-dollar threshold for automatically designated banks and systemic importance. will they consider this or no? >> as i said earlier we treat 50 billion-dollar institutions different than those in the law and regulations and it should be used to address the different circumstances and i'm not sure that we know that there is something that is inadequate. in the rules implementing this law were still being drafted. i don't disagree that complicated piece of law is not holy writ. on the other hand i think if we look back over the last years there have been serious efforts to appeal dodd-frank and undermanned some of it corporate situations. >> with those passages some of them were unanimous. so i think that that majority of people here on capitol hill disagree with you and i also think financial markets disagree with you that this is necessary. the same testimony, chairman frank talked ab

failure is the best regulation instead of all these dodd/franks, just margin products, okay? we can get rid of most of the red tape and maybe the biggest issue is listen they talk about climate change and trying to control mother nature and they can't balance a budget, they can't do corporate tax reform. come on. let's get down to the things that everybody needs to do. >> rick -- >> now, as far as the markets -- >> let's get back to the markets. >> you started this. >> i did. i had to. i couldn't resist. go ahead, rick. >> last segment jack brought up some great points last segment. the fact we're getting so close to quarter end given t3 in terms

some indication at this to how dodd/frank could have made a difference through the 2008 conference -- crisis? ag was styled to that. >> we have made the enormous amount of prospect. so are a day certificates of they can absorb the risk they take on? we have put in place consumer protections that did not exist before that metastasized through the sub prime lending problem. to put in a revolution in practices without liquidation authority to be sure the fdic can manage the taxpayers for the kind of support required in 2008 and 2009. it would work to bring global standards up. is a way for us to drive that conversation internationally with the high a global standards. we still have a lot more work to do. the idea that you never finishes not attainable because it doesn't stop dissolving it is why we ask questions about the money market fund and asset management not because there is a problem but we know it represents our risk issue to get our attention the need to ask those questions in the vans. the fact there is the f2 to bring together all the relevant regulators and authorities to as

but we don't know if we're going to survive dodd frank. and that's the sort of impact this legislation is having on businesses throughout the country. so with that -- >> when it comes to our colleagues on the other side that the financial crisis of '08 was because of a lack of regulation. exactly the opposite is true. government regulation specifically the amendments to the redevelopment act compelled lenders to make loans to people who couldn't possibly pay them back, then we shifted the loss of these risky loans to taxpayers by fannie may and freddie mac. this created a "house of cards" that collapsed catastrophically. they said you reap the ploftsrofits and fannie and freddie will take care of it. it used to be if a bank made a bad loan they ate the loss and went away sadder but wiser. and if a homeowner took out a bad loan they lost the collateral but went away sadder but wiser but in any case they left the rest of us alone. the damage was limited to the responsible parties. rather than returning to a market system where lenders and bo

on top of that, screwing around with dodd-frank. using their influence to water down banking regulations. by the way, they should have been broken up by dodd-frank and call up for a break up of all banks. since that time, citigroup has launched an effort. it's being done at the marketing team. they look at everything she says and whether it's having traction on social media and having traction with democrats in washington and possibly even the democratic candidate for that -- the likely democratic candidate for president 2016, hillary clinton. we should point out one of the big issues, citi bank is worried about reputational damage. they're worried about a breakup, but does this hurt them with major clients? jury is still out whether that will happen. but they clearly are monitoring the situation very closely with an eye on everything senator warren says. we should point out, as we break this story, there are other published reports that banks are basically threatening other democrats that if elizabeth warren doesn't back down from

i agree with you, dodd/frank isn't perfect. it should have broken you into pieces. >> they want to ensure that wall street megabanks will never again monopolize our nation's wealth or gamble away the american dream. >> you cannot regulate wall street. wall street is regulating the congress. time to break up large wall street banks. >> these lawmakers are not letting wall street run wild. but they've got a tough fight ahead of them. u.s. banks are adding lobbyists to target the watchdog agency that protects regular folks. the consumer financial protection bureau. the banks are also pouring money into efforts to roll back dodd/frank financial reform. and the new house republican budget targets both. republicans are doing exactly what wall street wants. and progressives in the white house and in congress will have to stop them. joining me now is vermont independent senator, bernie sanders. thanks for being here, senator. >> my pleasure. >> senator, banks are now talking about withholding donations. are they scared of the work you

[laughter] >> we will call you dodd/frank -- dr. frank. [laughter] >> now barney frank will take questions from the audience. [applause] and margarita who has been sold eliot and. and tom allen is here. >> of course, it is dependent to read people's handwriting. but how do you bring that issue of voter suppression to the consciousness of the larger majority of american people? >> because it is concentrated against minorities this manipulate to the rules to make a harder. but african-american members of the house but they did that give a record of births to black people in the 20's or 30's. so you cut down it is us a terrible idea then facilitated them was made to me. in and but here they threw out passed congress because they didn't make the right judgment. it was a terrible thing. but what we have to do this environmentalist or defending medicare with you were legislators fighting climate change to protect medicare obese or supportive. but let me say this. could to be better intentioned i wish they would stop saying there is no point in v

[laughter] >> we will call you dodd/frank. >> and his wife's sister was married to christopher who became one of a great broadcast journalist of public radio. >> now barney frank will take questions from the audience. [applause] to of my distinguished colleagues in the government [applause] said gm from southern maine and tom allen is here. >> of course, it is dependent on me to read people's handwriting. mr. frank howard you have the issue of voter suppression to the consciousness of though larger majority of american people? >> it is very hard juju because it is republicans so that macy and but sosa said i've mother was born in mississippi and has no record of her birth. ceiling thin the alliance in and cut down on early voting days but then that was facilitated by the worst decision even worse than citizens united the was a last dash for conservatives that they don't like activism. because they thought congress did not make the right judgment and it was terrible enable things to be done better but we have to make it clear to the environmentalist in those defending medicare that if they

dodd frank is bad, it is limiting business. do you buy the political line of dodd frank on either side? bart: usually congress goes too far and it's up to the regulators to pull back somewhat and make some sense out of it. what happened with dodd frank was different. in order to pass something, it had to make a broad and it left a lot of ambiguity to the regulators. regulators may not have actually got it right. in the next couple of years, you will see as the rest of the rules are completed -- olivia: which of the new commodities regulations do anticipate will actually be performed if any? bart: deals with end-users. there are speculative positions -- the people who use the physical. in the middle space, the mining industry alcoa. in the ad space -- energy companies and crude oil. those guys were never supposed to be impacted in a negative way from speculative position limits. limits on how much of a commodity can hold. the agency can fix -- if they don't fix it, congress may come in and provide guidance. olivia:brendan: why i

positive information in dodd-frank. and we're going to see tax inversions. >> dod dodd-frank? >> no one has read the entire thing, not even dodd and frank. i asked them. 90 pages more valuable are minority shareholder rights that empower 15 billion air hedge fund activists, they are shaking them up. charles: your point these boards are blinking. they are not hanging around, now they are like, an active shows up, they have a cup of coffee and a press release goes out. jeff, you invest across the board. you are an active investor, where do you think this going with equities market. >> everyone is putting a positive spin on these, i agree with anthony. have you low barring cost you can fund the deals efficiently, but think about, there is a lot of cash, a lot of borrowed money not a lot of internal growth in the companies, they need to go out and find a buyer. charles: the buy --? whole economy. charles: one company, that not growing is buying another company? >> yeah. >> i see there is distortions across the board, because of the low interest rates. what i see, you see in silico

has dodd-frank impacted small businesses in the area of loan underwriting? guest: what the sba has done is whether you are a small medium, or alternative lending channel we want to be efficient and effective so we put up to technologies that we are hardened by and the results are proving to be very effective. the first is called link. some people go on the line to find a date in two match.com or some similar instrument. now you can go to -- go online and you can find your lender more quickly. mark: are we talking about hours or days? guest: the system is when you complete the 20 questions than all of the lender community can see what is taking place there, so we make a date within 48 hours is our guidance. we like the lender to respond to the borrower within 48 hours and so they can meet and find out if there is a match there. the point is small banks are not getting the foot traffic. they do not have the large advertising budget. through link they can go online and see all the traffic coming on to sba. we get 2 million hits a month for people looking for --

frank, but are you worried dodd frank will be diluted slowly? >> here's the deal, the norm is for the public not to pay attention and when they don't pay attention powerful economic interests have their way. what happened in the financial crisis -- kind of what rahm emanuel talked about, you don't let an opportunity pass that a crisis presents, the public got engaged. i've said big money makes a big impact but when the public gets involved votes will kick money's butt, and that's what happened hear. so we got the bill passed. the fear was, as things went forward people would forget and big interests would fill the vacuum. >> hunt: did that happen? no. i thought it would. the president signed a bill that had the beginnings of unraveling. the public was unhappy. nancy called me and asked me to jump in. hillary clinton sent out a tweet saying we'll protect the financial front. the public reaction was one weakening, the reaction was so strong that i don't believe it will happen again till the republicans win the election in 2016. we have one of the

so the system is corrupt, and dodd-frank has lots of problems. we obviously needed financial reform after the 2008 crisis, but, look many of the rules still haven't been implemented. and they're riddleed with loopholes. >> could >> as one of the founders of the heritage foundation -- i didn't know that until the introduction -- that do you think of what has happened to the heritage how long? >> let me just say that when my previous book came out before this one, did i mention i had a book -- maybe -- makes a fine holiday gift. >> right. i had a previous book called "reclaiming conservatism" about how the conservative movement has changed, and so i tried to get in front of the heritage foundation to give a talk about my book, and they didn't want to let me talk, but i said look, i one of your founders, you can't tell me i can't talk so i did. they said to the crowd at the beginning, because you may not know the heritage foundation, let us tell you who we are our mission statement, strong national defense, less regular legs and i said wait a minute

i think we're seeing the same thing with dodd/frank. dodd/frank, you can never vote out 2300 pages of legislation and have all the answers in a week, so it doesn't surprise me that we're going to go through some ebbs and flows as it relates to dodd/frank. >> terry, always good to see you. appreciate it. >> thank you, bill. thanks kelly. >> terry duffy, busy day for him. >> minus signs keep getting bigger. the dow is now down 261 points. decline of almost 1.5%. the nasdaq continues lower down more than 2.1% right now or 108 points. >> we've got much more on this special market sell-off coverage when we come right back. stay with us on "closing bell." hello. i am here to offer sophisticated investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it. all without charging advisory fees, account service fees or commissions. that may be hard to compute. but i'm a computer. so trust me. it computes. say hello at intelligent.schwab.com >>> welcome back. relentless selling pressure in

dodd-frank, sold to the american people as stopping too big to fail. the big banks have gotten bigger. mark: why is goldman sachs a negative force? sen. cruz: they seek out and get special favors from government. they are entitled to practice their business, but without subsidies. john: are you proud of what she did for goldman? sen. cruz: i did mention that. i have to say, a lot of times the caricatures of republicans they do not fit with the facts that i have an amazingly brilliant professional woman who was my best friend in the world and my partner in everything we do. john: a bunch of people compared you to the current president of the united states. what is your reaction to being called the republican obama? sen. cruz: if people are not throwing rocks at you, you are not doing anything. i have tried to lead on the great issues of the day. before i was in the senate, i was not a community organizer. i was the solicitor general of texas and represented texas, winning some of the biggest conservative fights in the country before the supreme court. j

charles: the you think something like dodd/frank has to get done? there is something to be said about understanding what the rules are. >> practically with the small size banks they are interesting lenders in the crow i will tell you all lot are concerned about a lack of due diligence and scrutiny. and some are relying on the process. it is like when they bought for the credit rating. they did not do their own due diligence. then the to the online marketing. >> paypal and square with capital division that is the future. if i am a small businessman need an extra $50,000 with my receipts coming in every day. that could help the business grow. charles: is there an investment opportunity? was the first earnings report to e as a huge potential with the business side is there any way you see this? >> glinting club is of a dangerous idea but as most ipos they have the splash deal with bank of america and it will take time to shake out in investors how they value earnings or the lack of earnings. and lending tree that has a tenfold run into a half years tha

al: there is dodd-frank, of course. in retrospect, could it be made less complex? representative frank: no. part of the problem is why is it so big? in the new deal, they passed two bills. one dealing with banking, one with housing. i thought we would have seven or eight separate bills and chris dodd says to me, pal, do you know what it is like to pass bills in the senate? 60 votes six times? they will hold me up. the other thing was the financial system had become more confident. there was no such thing as credit default swaps in the 1930's. part of the problem was there was too little interconnection. we added a few things. i don't think it could have been any smaller. al: you write that the powerful financial interest as illustrated by dodd-frank, but do you worry that it will be diluted slowly? representative frank: yes, i was. here is the deal. the norm is for the public to not pay attention. when the public is not paying attention, powerful economic interests have their way. what happen in the financial crisis, it is what romney talked about, but the opportun

but we don't know if we're going to survive dodd-frank. that's the sort of impact that this legislation is having on businesses throughout the country. so with that mr. garrett: i yield to mr. mcclintock. mr. mcclintock: we hear that the financial crisis of 2008 was because of a lack of regulation. exactly the opposite is true. government regulations specifically the act, compels lenders to make loans to people who couldn't possibly pay them back and then we shifted the losses of these risky loans to taxpayers by fannie mae and freddie mac. this created a financial house of cards that collapsed catastrophically. my colleagues talk about wall street agreed. of course it was wall street greed. government told wall street, you reap the profits and we'll get fannie mae and freddie mac to stick taxpayers with your losses. they took us up on that and then my colleagues are shocked that they did. it used to be that if a bank made a bad loan, they ate the loss. and they went away sadder but wiser. and if a homebuyer took out a bad loan, they lost

i agree that there is a too big to fail issue that has not been resolved under dodd-frank. but the commodity trading partner exercise is not the problem. it is not the elephant in the room. you can't represent that pushing these banks out of commodity training -- trading is going to have a significant impact. it's not. it's not a big enough part of their underlying activity. so, the fed is not going to have to come in and protect banks of from bad commodity traders. they will be absorbed by the banks. it hasn't happened. carl: if the fed regulates is sufficiently that they cannot place the kind of bets that would pull them under, as we saw the housing sector, that would certainly have a balance. alix: i have to point out -- mr. gregg: the commodity sector is completely different. the housing sector is completely different. there is no question that what happened in 2008 was -- carl: but in the commissioner's defense, he is preventing banks from getting into deep and needing a bailout. alix: but it is not just about the size of the best though. it is also that you have a tra

dodd frank didn't eliminate too big to fail. in fact, dodd frank codified "too big to fail." it restricts access to funds for main street. because of legal compliance is no overwhelming our community banks. those of you that come from small communities in no those banks may be the only institution in our rural areas to fund economic development there. they happen to provide half of all the small business loans in this country. this contributes that perception -- and i would argue the reality -- that the big institutions of big government can take care of their own while main street gets the grounds -- crumbs. we need to stop the excessive regulation that kills jobs. they harm small businesses, cost every american family -- these regulations come almost $15,000 every year. that is the cost of this overregulation. we need to repeal every perverse incentive that keeps the ball -- keeps people from looking to work. one of the many flaws of obamacare is that it causes employers to move people from full-time work two part-time work just to avoid this massive new insurance cost and

dodd frank did not eliminate too big to fail. in fact, it codified it. it limits funds on wall street while restricting access to funds for main street. the cost of legal compliance is now overwhelming our community banks. those of you that come from small communities know those banks may be the only institution in our rural areas to fund economic development there. they happen to provide half of all the small business loans in this country. this contributes that perception -- and i would argue the reality -- that the big institutions of big government can take care of their own while main street gets the crumbs. we need to stop the excessive regulation that comes out of washington that kills jobs. they harm small businesses, they cost every american family -- these regulations -- almost $15,000 every year. we need to repeal every perverse situation that keeps people from looking to work. one of the many flaws of obamacare is that it causes employers to move people from full-time work to part-time work just to avoid this massive new insurance cost, and t

and when you eliminate that risk that dodd-frank has done, not only will wall street stop doing good things, it'll stop making money, as much money, and people like ruth porat will leave. she's a casualty of dodd-frank -- cheryl: and she was supposedly in line to be the ceo before he came along. >> well, i think she was in there. now, i always think james had the inside track, but there are, essentially, three people before she left that were, that had a shot at his job if and when he leaves, frank fleming who runs wealth management, tom call her and ruth porat, the cfo. often that puts you in a really good position. a lot of people think fleming has got the inside shot. now, i mean, he really has the inside shot. cheryl: interesting. again, morgan stanley a bank you know very, very well. thank you, sir. >> okay. cheryl: all right. the closing bell's going to ring, 18 minutes to go. we're going to stay on silicon valley here for a moment. one powerful woman that's heading there to another involved in a very ugly lawsuit there. the final scene of a shakespearean dra playing out in a s

we already foe that poor households have been squeezed by dodd-frank. dodd-frank is squeezing community banks. community banks are getting dried up. so these poor families are going to payday lenders and other types of businesses targeted by operation choke point. what is going to happen, it will drive people into the black market even further. they will be even further detached from the official financial services market. that is unintended consequences. david: the fact, sabrina the sin stocks, casinos, tobacco companies, liquor stores, et cetera. maybe there is a role for government to be tougher on them than kmarts? >> first of all i want to know what's next, right? will it be sugar companies? chemical companies. the fact the administration when they can not pass things through proper legislative channels n this case, one of the things that they're after are gun manufacturers. when they can't pass certain changes to the legislative channels they use the regulatory state. these are legal, businesses, whether we're talking about gun manufacturers or to

. >> we have voted numerous times to weaken financial regulations, the dodd-frank bill, the federal consumer protection bureau has been the subject of many pieces of legislation this past year. i'm not able to get one single hearing on this issue. >> if you've got lobbying powers who lobby 24 hours a day 7 days a week 365 days a year on behalf of banks on behalf of issuers and no one protecting investors or the consumer, you got a problem. >> the lack of change will allow them to do it all over again when people's memories fade and the dust settles. >> watch more "faultlines" >> this is aljazeera america live from new york city. i'm tony harris. the email controversy. hilliary clinton defends her years of a private email system, while a secretary of state expelled in oklahoma. >>> the university of oklahoma takes quick action over that racist chant video. and fallout how iran's impact on u.s.-eastern international relations. , and the blurred lines verdict. a jury

and while i'm a strong supporter of the steps taken in dodd/frank to prevent future crises, i wonder if that's accurate or there's a series where you steadily ratchet up regulations in accordance with growing size. we would welcome your insights into that point as well. >> thank you, senator. cdfi i think has been an enormously effective program both because of what it does directly and because of the institution-building role that it plays in the communities that it serves. in just looking at the raw numbers, in 2014 we made $146 million in awards. and it produced 50,000 new jobs, almost 10,000 businesses financed. and in the communities where they're present, there is a financial institution that local businesses can go to. so in places where community banks weren't able to have a foothold, it's created access to the benefits of what community banks offer. the cdfi bond guarantee program you know addresses one of the fundamental challenges in revitalizing communities. in many low and underserved -- low-income and underserved communities, access to long-term fixed-rate financing is

immigration, when it comes to the need for continued reform on wall street and instead of offering up dodd-frank light so as not to offend any democratic party loyalists in manhattan. i think we need to continue this job and we need to do it on the principles that unite us as a people. windows refugee kids risked starvation and all sorts of suffering to arrive at our doorsteps we should stick to our principles and treat them as the generation and compassionate people that we are, people whose enduring symbol is not above our statue of liberty. that is what i mean when we say that the triangulation on not allow us to solve our problems. splitting the difference between the way things have always been done and some extremist view of the way things might be is not going to bring us forward. we have to be clear about our principles as a people. we have to have enough faith in the american people to speak the truth about the challenges we face and what needs to be done in order to overcome that. that is what i meant by that. >> thank you very much for that answer and for your appearance here at brook

. >> we have voted numerous times to weaken financial regulations, the dodd-frank bill, the federal consumer protection bureau has been the subject of many pieces of legislation this past year. i'm not able to get one single hearing on this issue. >> if you've got lobbying powers who lobby 24 hours a day 7 days a week 365 days a year on behalf of banks on behalf of issuers and no one protecting investors or the consumer, you got a problem. >> the lack of change will allow them to do it all over again when people's memories fade and the dust settles. >> watch more "faultlines" on demand or visit aljazeera.com/faultlines. >> heavily armed combat tactics >> every little podunk wants their tank and their bazooka... >> with s.w.a.t. raids on the rise... >> when it goes wrong, it goes extremely wrong... >> what's the price for militarizing our police >> they killed evan dead >> faul lines, al jazeera america's hard hitting... >> today they will be arrested... >> ground breaking... >> they're firing canisters of gas at us... >> emmy award winning investigative series... deadly force: arming america

our job is simply to do all we can to keep them that way. >> we are about five years out from dodd-frank and have put a lot of regulations in place. are you satisfied with where we are in the rules? >> yes, we have made a lot of progress to bring the over-the-counter market out of the shadows, create more transparency, create more reporting and emphasized central clearing that has been very important. >> how much of the trading should go on regulated exchanges? >> we set up a framework for that and a lot has moved on to those regulated platforms and i think we will continue to see it. people are still getting used to that and it is still working -- it is still getting worked out. it is more about which products are suited to that type of trading. i think we have major mende's progress in all these areas but the main thing is we are focused on making sure the markets still work for the businesses. betty: thank you for joining me. tim massad. we will be back in just two minutes. ♪ matt: you are watching "in the loop" live. i am matt miller in for betty liu. we are keeping a close eye on

and they are required -- and they are required by the dodd-frank asked. and british prime minister david cameron who is recap painting for reelection on may 7 ruled outstanding for a third term. london mayor boris johnson are possible successors. deep diving other ukrainian economy that now one with a slight more rosier picture, the irish economy. looking to sell off some assets of the two states owned lenders. looking to sell shares. simon harris, wonderful to have you here. thank you for stopping in. i wanted to focus in on what movements you are seeing by the european central bank? they are trying to boost lending into the real economy and injecting bond buying. simon: we are already seeing a benefit of quantitative easing. it is very much welcome. a confidence coming back into the eurozone and availability. it is also important to stay it is one of a number of things that european central bank needs to do. quantitative easing refers to the monetary policy side and is welcome and we are seeing a positive reflection about 0.25% of 10 years. we also need

what does this mean post dodd-frank? guest: it's a transmission mechanism. the fed changes the fund rate. that is supposed to change all of the interest rates along the way, including the activity for banks. we know that banks don't act the same as they did in 2006. that process is quite different. we know that capital requirements look different. the important point is a lot of the balance sheets are concentrated in long-term treasuries and not at the short end of the curve. that tells me once again that that transition mechanism will impact long-term interest rates. we can talk about monetary policy getting back to normal. how that affects the economy will not be like the past. manus: we will catch up later. they have a heck of a balance sheet. do they use the fed funds right? is that still a holy grail? guest: from what i can understand the answer is yes. it is still the primary tool that they will work through. there's not much discussion on how you shrink the balance sheet , just an idea that will use the front rate and i think they will be cautious on

fortunately the dodd-frank at two key steps to address this problem with the creation of the financial protection bureau at the same time the cfpb has taken actions to tailor its rulemaking when it comes to small banks and credit unions and has the authority to amend regulations of access to credit especially for our most vulnerable population become too constrained. even though the cfpb has been exceptionally reasonable in their approach last year the house pass number bills to provide additional exemptions to consumer protection citing lack of credit for low-income borrowers. can you tell us what data the treasury has on credit availability since the crisis and whether you think congress needs to pursue legislation to create more exemptions from consumer-protection rules? we need some help. >> congresswoman waters i think if you look at the current experience in the mortgage market it's a little bit too hard actually for people to get credit in some -- if you look back to what we are trying to stop after the financial crisis it was to stop people from getting in over their heads with

. >> this is a question that refers to your work in the finance world, dodd frank. a very interested in your book. you have two appendices that specifically deal with the history of subprime lending. >> we are in a situation where the economic model for lending changes. to make loans gather loans world bank and pay back the bank. they watch very carefully who they landed to. immediately sold and packaged and the lender did not care. the incentive to switch and that led to this crises. the republicans were in power, the democrats bought into this and did not regulate. mortgages were made and packaged into new financial derivatives. the main regular of dermain regular of derivatives is called the chronologies future trading commission. then financial commodities came in. during the time when these laws were being made the knew democrats gave them terrible loans and protected fannie mae and freddie mac. by 1994 democrats worried about those loans telling the federal reserve to regulate them. that is an interference in the market. we tried on several occasions the state

they were mandated by the dodd-frank act of 2010. they look him in two stages. today passes results will be on the impact of the tests. joining me now is michael mckee of bloomberg news. and allison williams, bloomberg intelligence bank analyst. thank you so much. it is the start of a two-day process. what are we in for? >> the fed looks at what will happen at the capital of various ranks. you have to be bailed out to see whether or not your capital ratios are hire enough to withstand the area. we find those results today. we find out next week that might not just be the level of capital. it may also be the fed's comfort with internal control and how well banks prepared in the future. mark: do you mean worst-case scenario? >> the fed does several different levels of tests to see if they can hold on or whether losses will be such that they will be underwater if they went through the great recession again or even worse. mark: aside from a pass fail grade, what should banks be looking for today and tomorrow? allison: is when we have the possibility of getting big s

it is required by the dodd frank act. shareholders turn up the heat on tesco. plans to bring action against a u.k. grosser after it overstated profits. the lives of tesco's troubles. our bloomberg analyst joins us. what is the problem? is it reputational thing or the number? charles: i am sure it is the number. we have to put the number in context. it was 263 million pound overstatement. realistically, the consensus has fallen from somewhere over 3.5 billion to somewhere over 7.1 billion and so a comparative. to a certain extent symptom of what was a fellow the business. jonathan: look at the stop price gauge the news this morning, stock is down 0.4%. in terms of material impact on the business from this investigation, charles, june expected to be minimal? charles: it will not be a huge amount and that comes back to it. it was 250 million pounds which is a large amount of money but compared to its profitability. jonathan: let's talk about h&m and what is going on there. a beat for h&m. investors seemed to like it. stock is up more. what is the business doing? c