tv The Dylan Ratigan Show MSNBC June 13, 2012 4:00pm-5:00pm EDT
paragraph even, maybe two. instead of doing that, we have responded to this complex system with an even more complex regulatory response from a group of people who don even understand they are regulating and instead of giving them the one thing that everybody needs, don't gamble with other people's money, boys and girls. can you do that? they refuse to do that. once they put that rule in place the government is irrelevant. now i don't have any -- now i don't get to be in charge. i don't have to write anything. i'm like -- oh. and am i surprised i'm still talking about this in 2012? yes, i am. mike mayo is here. this place is chop a block. they forgot more about this than i know. let's get after the show starts right now.
i love it, june wednesday afternoon. i'm dylan ratigan. nice to see you. you have a preview, big dimon in the rough. >> i'm appearing to discuss recent loss necessary a portfolio held by jpmorgan. it created larger risks. we let a lot of people down. can't say we won't miss taste. we know we will make mistakes. we believe that this was isolated event. >> jpmorgan's ceo promising taking on excessive risk in the name of profits was an isolated event. you heard the sound. here's a sampling of our -- those that represent us. we pay them with our tax money. their response to mr. dimon. >> do you regret calling the efforts to require banks to hold more money, quote, un-american? >> bankers will always be ahead. you are giving them the
information they are using to regulate. >> this transaction that you said morphed, what did it morph into, russian roulette? >> jpmorgan would have gone down and you have been out after job. >> it appears regulators simply can't understand why what's happening in all of these offices at once. it demonstrates to me too big to fail banks are, frankly, too big to man age and too big to regulate. >> great fire and brimstone in front of the cameras. i was having this conversation as were we four years ago. when it is time to accept all those campaign donations, especially if you are on the old senate banking committee, you would be shocked just how much of the dough for both democrats and republicans pretty much the same you can see the numbers there, 256, 252, comes from jamie dimon and the bankers. you see, remember we talked about -- talk a big game. you are -- mean, you are -- then you just take the money and hope
nobody notices. there is the money and talk. let's see if these people take any action. joining us now to help us break down what those actions might be, dennis kellerer, ceo of better markets. mike mayo, one of the longest standing and most significant voices in financial research. certainly for 2 -- the span of my career and beyond. he's also the author of "exile on wall street." welcome. nice to see you guys. >> hi. how are you doing? >> great. how are you? >> great. >> let's talk about jamie dimon. what he represents, mike, on wall street in the sense of the culture of wall street which really -- provides great admiration, power, authority, and aspiration for really smart, really rich, really charismati really powerful individuals that many people on wall street would like to be more like that. >> well, jpmorgan --
>> jaime is that. >> jpmorgan is best of the breed. talking fannal supermarket, global wholesale bank. and jamie dimon is best the breed of the ceos, one of them, on top of these. so -- but what the recent train loss exposed is a crack in the model. the breed as a whole, as as category, it is a lot less than a -- lot of people thought even after the financial crisis if you have one crack in the model, there's certainly a chance that other cracks in the model at less well-run companies. >> basically you have one of, if not the number one financial services, ceo in the world. in jamie dimon. >> definitely one of the top. >> you have one of -- or the pre-eminent financial services firm in the world. >> among -- >> or top three. >> top three of both categories we could debate all night. >> among the big financial con glot rat. >> one of the top three ceos and top three firms, dennis, capable of seeing a -- twice the expected loss out of nowhere on a system that people still can't
really see or understand, what is the lesson not for jamie dimon, not for the congress, not for the regulation, but for all of us to understand about what is being shown to us, what is the flaw of that crack is revealing that if one of the best guys, one of the best banks is getting -- kickback from it, that sounds like you got yourself a problem. >> well, i mean, the truth is the wall street too big to fail bank model is to make as much money as humanly possible, quick as possible, and then in any particular way possible. and that's their goal. frankly, jamie dimon didn't even back away from that today. he likes to pretend and call it banking. it is trading and finance. and what this illustrated and reminded everybody is those big banks have surprises because they cannot manage a bank that's 270,000 global employees and trillions in assets and these things are going to keep happening without financial regulation. >> so let's talk about financial regulation, mike. we have -- had the complexity of
the greenspan era that brought us forward. now we are dealing with the uber complexity of dodd/frank. it is madness. and in the -- lost in all of it is the most simple foundational component of america, capitalism of our identity which is use your own money. and -- scratch through the capital requirements and retained risk. why can -- why are we having such a hard time with the simple regulation to annihilate the complexity that's being used to -- that's sort of rabbit hole we get lost in? >> we forget how large the largest banks are. we say trillions. 2.3 trillion. >> i don't know what that means. >> no one knows what it means. these are really big numbers. 20 times larger than the banks were a couple of decades ago. >> this is not his money. this is -- custodial of the global asset pool that's one of the biggest. >> that doesn't even talk about
custodial. that's their own balance sheet. >> house money. >> that's their own balance sheet. total asset. her getting very complex. i do think the ultimate hope, the goal here, we go back to 1950s-type banking when you didn't worry if the bank would be there from one day to the next, i think we get there with the higher capital, and others less leverage at the banks, and more stable earnings streams. and they are just -- return the money to investors once they get back on their feet. and then the investors win because the stocks go up under that scenario. have you confidence in those dividends being returned. the taxpayer wins because you have additional cushion against unforeseen loss >> isn't the barrier between those benefits you described and the -- the -- incumberence, between here and we get to the
lovely place you described, what is the -- how do you get there without creating a huge contraction in lending? >> you do have unintended consequences as a result of regulation, banks are incentive to have more securities than in loans. that's on top of some reduced demand for the loans. so this situation is going to happen again. having deposit in is exes of loans and excess money invested poorly, that's what happened to jpmorgan. that situation is as old as banking, becoming more prominent because banks have more money to invest. >> bigger. dennis, if you were to look at this from an apollo xiii standpoint, not fantasyland, not what we wished we had, not what we think it should be, what exists today? $700 trillion in swaps, big banks intact? we know what exists. central brangs supporting it. if you could go to d.c. with one piece of legislative proposal right now on the heat of the jamie dimon conflict much interest of federal reserve, all
the -- what was the one -- what would be the one bill you would put in front of our congress this summer that could move us closer to the direction mike mayo is talking about right now? >> i think -- put your finger on the first step of a multistep bill which is capital is important. we know from -- through history, the capital can easily be manipulateded. risk weighted capital. it is really not going to solve the problems. we know from history that this industry was regulated massively after the great depression. during the great depression. it created layers of protection from the industry which is why it took them about 20 years to break down all of those protections. we need to put those layers back up. the other thing that's interesting, dylan, when they were massively regulated, more regulated than any time in history, not only did the financial industry thrive but broad based prosperity in the united states was spread throughout the land. we grew the largest middle class in the history of the country. we did that with highly regulated banks. we can do it again if we don't let the banks kill regulation. >> nodding here. >> i would like to supplement
that with more actions by investors. talked about this before on your show. let's hold those who should be held accountable more accountable. either punish those or all would be punished. perennial underperformers and talked about citigroup before. since i was on your show several months back, the shareholders spoke up and said you are getting paid too much. citigroup still hasn't responded to that criticism. this saturday is their 200-year anniversary to the day. how about as -- >> a gift? good as a gift to everybody else saying we are listing to the owners of our and so going to react. the insiders, investors, don't take action on that your own, then -- the outsiders, regulars, everybody else has every right to. >> go ahead. >> as you can see, you still need strong, clear laws with layers of protection. the fact of the matter is that the profit maximumization model of the too big to fail banks on wall street, they get subsidies and compete unfairly against
everybody else, including all of the banks in this country. >> i was going to say the mall banks getting on the chin worse than anybody. >> that's right. i said before we 4erd a lot about the 99%, the other 9%% versus 1%, why aren't the 99% of the banks in this country who are really taking it on the chin from the subsidies to the too big to fail banks on wall street rising up and supporting financial reform to restrain these guys, level the playing field, get rid of the subsidies and when they fail throw them into bankruptcy and out of work. not into the comforting arms of the u.s. taxpayer. >> not a complicated problem. it helps if you are funding the senate banking committee ahead of time. gentlemen, a pleasure. thank you. from banks and the economy to the financial sector at large, it is our theme today. fresh off of dimon's testimony, we will ask another wall street ceo, john taft, how he thinks jamie dimon did and talk about the kind of leadership truly needed in the financial sector to restore a culture of
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million thus par. which is hard to believe when you consider what an incredible favor the president has done for them the past few years. with all the various money printings and subsidies, giving them an implicit guarantee. you heard from about from dennis. only the biggest banks get an implicit guarantee for future bailouts. an odd structure. i want to bring in the mega-panel. jonathan and rob. i like your green there. green, green, blue, blue. colorful. brown. burgundy. you can read a ton into this. right? you are like mitt romney -- obama, barack obama is a-- has allen eighted wall street. for me wall street guy is any guy who doesn't make them use their own money. it seems to me that both presidents -- we haven't had a president that wanted them to use their own money since clinton.
right? clinton 'twas last one that was -- you have the use your own money. everybody came and n and said we have computers. we don't need money. we can put tonight currencies. there hasn't been anyone since then -- remember when you had to have your own money, partnerships and like -- it meant something to become a partner to one of the firms. now no, nothing. >> let's step back. the money -- the business community, chamber of commerce, wall street, is, you know, big part of that. clearly putting all of its -- gone romney. >> betting red. >> the -- what i think -- i'm going to look the half full -- >> half full pundit. >> if he is going to do what he says he will do, reform the tax code, get -- fix the fiscal problem in the united states, he is going to have to do away with subsidies, loopholes, and bailouts, special distortions in the tax code. all those things. that's what -- in theory he will need to do if he will meet the
promises he is giving. i'm going to love to see what happens in the chamber of commerce. people who bet on romney red to find out they lost all their special tax incentives, gone. this will be exciting to watch. >> take us inside the -- take us -- channel the mind of a donor. all right. i know -- i gave obama money and now i have dodd/frank and complexity, making me crazy. you think it is stupid. i don't want any part of it. i'm not giving that guy any more money. i'm going to bet on the other guy, romney. he's not going to do all these silly things i didn't like. >> right. >> except for his first 100 days say he will do a bunch of silly things i'm not going to like. but i'm still giving him money. >> here's the thing. when they were giving barack obama money in 2008, it was pre-citizens united. there was a max they could give and then that was it. >> caps. >> now you can give the max to romney but then right -- write
a -- >> get that to the super pac. >> we -- i we know the money. >> motivation is to get whoever the -- get romney, get your guy in and hope that he -- hope for the best. hope he will do what you want him to do. that's why i bring in citizens united because now you literally can write a giant check to ensure romney listens to you. before you write a check and hope that the guy will listen to you. >> more reason to hope. >> if you were president romney i could go to you and wrote you a $50 million check. hey, i wrote you a check. >> keep the tax break. >> wall street obviously prefers the safe bet. certainty. that's why the donors moved over to romney. the end of the day romney will have a backlash if he doesn't do what he said in first 100 days. this is the worst election money
could buy. i read that today. >> it is a good one. that's my kind of statistic. size and scope from the good old day. >> backlash. >> yeah. >> backlash from america. >> yes. let us hope that -- well, it is not that bad. breaking news for you here concerning john edwards. nbc news senior investigative correspondent lisa myers with that. hi, lisa. >> with this order, a federal judge today ended john edwards' legal troubles. it dismisses the five remaining counts against john edwards on which a jury was unable to reach a verdict. prosecutors had asked the judge to dismiss these charges. the jury did find edwards not guilty on the only count on which it was able to reach a verdict. the justice department has put out a statement today saying that while it is -- it is his
duty to bring challenging cases and believe the prosecutora fine job in this case, that these dis -- dismissing these charges at this point is in the interest of justice. so that mean john edwards will not be retried on these five counts. and that his legal problems are over. this is not exactly a shock. when the jury was polled, the government had failed to get more than four guilty votes on any of the counts so it had been anticipated that the prosecutor was not retry the case. but this -- with this judge, with this order, judge eagle made it official today. >> all right. thank you so much. next up here, as americans struggle on main street, we ask has the culture that established the roots of the financial crisis on wall street changed at all? are you an opportunity seeker who bears your own risk or somebody that likes to gamble with other people's money?
did you personally approve of the chief investment officer's trading strategy? >> no. i was aware of it but i did not approve. >> it did you personally monitor the chief investment officer? office? >> generally, yes. >> that, of course, jamie dimon today. his leadership, the culture of his leadership under a microscope today. i would say he is among probably the most highly regarded in recent wall street history for his leadership. there openly admitting oversights and maybe even hubris cost his firm, jpmorgan chase, between $2 billion to $4 billion. could it ultimately cost as much as $7 billion. of course, no wonder our specialist says investor confidence is shot when one of the best ceos and best and biggest banks is able to take a banana pie to the face like
this. so how do you get a legitimate history in the culture such that you have a little less wild reckless or wild risk taking and a little bit more aggressive opportunity seeking which really was what wall street was intended to do? joining us now is john taft himself, ceo. part of the royal bank of canada. also author of "stewardship." what's the lost culture? >> it is a culture where serving the needs of clients and furthering economic growth is the principle purpose of the financial institution. >> sit a prerequisite you must be using your own money? if i'm using other people's money, it is simply -- very hard to do what you are describing and i can make money, lot of other -- much easier way. >> i'm going to disagree with you right out of the chute. let's start with the whole concept of banking. you are taking money from
depositors, imogen, large deposits. she expects she can call the bank and get her money back dollar for dollar tomorrow if she wants. >> she is very demand. >> here. >> here would be fine. then the bank takes that money and puts it out in a form of loans to the most -- rob. for years. five years. and we also take the risk, no offense, rob, that you might not be able to pay back the loan on time. so -- we are arbitraging your desire for safe short-term deposits, long-term risky assets and that risk taking function is at the core of the banking system. exactly. >> it is a real valuable service. we need to have it. it is -- all these things. >> in both cases, the depositor and the borrower, you have real clients operating in the economy. what we lost was this primacy of client focus.
and every time you read about it and you read about a problem almost every week or month now, it really doesn't have to do with clients. it is a financial institution doing something that has nothing to do with clients. because the closer you stay to your clients, the less risky your business practice will be. >> because you are on -- >> that's right. they will keep us innocent. >> what about jonathan capehart? >> the regulator -- we are in the united states headed down what i think is almost a hopele hopelessly difficult task. that is to deal with literally hundreds of new laws, thousands of new regulations, and millions of new reduce. a problem that ought to be dealt with at the level of principles. okay. you can look across the border to canada where there are only six banks, too big to fail is part of the canadian banking culture. yet, no bank failed, no bank
even cut their dividend during the financial crisis and the regulators fear -- >> why? >> because they were properly regulated. regulators relied on principles rather than rules. here we just keep layering on new rules. >> what's the principle requirement? >> it is run the bank responsibly for the benefit of your constituents. that's the fundamental principle. >> like the hippocratic oath for a bank ceo. >> it is. yesterday i was here in new york at a roundtable of financial services industry leaders chaired by the cfa institute which is a gold standard in investor protection. now that was exactly the message we need to get back to some kind of principled oath literally, didn't use that word professionals in our industry sign up for before going in and doing -- >> client first. >> absolutely. client first is the oath. that's exactly right. >> what do you make of romney's corporation of people?
>> i'm so glad you ask that. i wrote a blog publish in the harvard business review that says yes, corporations are people. i think he is fundamentally right. not in the way he meant it. what is a corporation but a collection of people set up run by people for the benefit of other people. this motion you read in the neo-capitalist text that somehow we create these disembodied institutions with a pure obligation only to the shareholder, i don't understand that. that's not the way my business runs. we have employees, clients, communities in which clients and employees live and shareholders, all constituents, and they all need to be served by the corporation. that's what you do as a person in your daily life. why should i a corporation be any different? >> the point of concern where the decision in the corporation and an individual is that an individual does something that is -- anti-social in behavior,
there is some threshold to intervene and tell that person not to do it anymore. whereas a corporation or a group of people participate in anti-social behavior that's predatory for whatever it is, mining company, miners die, don't do the safety requirements. there seems to be -- lack of accountability that's afforded by the association of a corporation as a person. how do you reconcile that? >> i think i agree with what you are saying. but i would say that the principle is the same. okay. any time an individual actor engages in behavior and that behavior serves their self-interest, but creates negative consequences for others in society, then you have an issue. that is true whether the actor is an individual or it is a corporation. and, in fact, what we are learning -- the reason have you all this new regulation out there in the financial services industry in the modern economy,
where economy is global, financial institutions are interconnected, any action, anywhere in the world, almost of any kind, can spread quickly, deeply. the consequences of bad actors is greater than ever for thus the need for protections. >> the corollary of what you are saying is good actors would have a high impact factor as well. >> in other words, if i can spread a bad virus globally, bad actor at the exact same mechanism that spreads the vi s virus. >> i'm a little confused which is not surprising. but -- you were saying before that -- we need to go back to -- basic principles putting the client first. then also complained about the layer and lawyer and layer of regulations and -- regulate wrors. so then how do you -- how do you keep the banks and these financial institutions honest if
you don't have regulations and regulators who are keeping their eye on what's happening because -- you know, what we went through in 2008 wasn't because of -- there are too many regulations. it seems as though no one was paying attention at all. >> yeah. i would be the last person to say and -- nobody in the financial services industry that i deal with would say that the regulatory reform effort that we are in the middle of is a bad thing. okay. the rules that were written under which we operate were written at that time beginning of the last century when the world was a very different place than it is today. updating them, changing them, so we deal with contagion risk as it xsts in the modern economy is a good thing. in fact, the financial system is safer, sounder, more secure than it was in 2007 because of new rules. all i am saying is that it is overkill at this point. we literally have thousands of new regulations and millions of new rules where this is a case where less is more.
let's focus on a few core principles or core regulations and try to deal with most of the issues that way instead of trying to solve every problem that comes up. that's really sort of a fool as error and that's what we are trying to do now. >> okay. jpmorgan had this problem. jamie dimon was there. this is an -- bank with $80 billion of capital. it lost $2 billion. it is going to make $4 billion this quarter. i mean, aren't we doing -- ourself as disservice by turn thing into some sort of circus? i moon, it makes it seem like the government can prevent banks from losing money. >> i agree with everything you just said. yes. and -- what i think the story is around jpmorgan is not what happened. or the fact that regulators missed it. that may be good news because they were focused on more important things. it is the fact that there is so much public concern around it, that's an indication of how little trust and confidence the
public still has today and the financial system -- >> governing both. >> exactly. there is a fear that somewhere, somehow, a financial actor for good or bad reasons is doing something that will blow the system up. that's why jamie dimon was in front of congress today. >> that's the biggest inhibition, confidence, and the reason why people feel so aush us about the next five years because there is a rock in the candy bar somewhere. they haven't found it yet. they are like somewhere out there this is -- there is something out there. >> that's exactly right. that's not just a problem for the financial services industry. if investors stay on the sideline and you don't have patient capital for economic growth, and guess what, the other thing cash and bonds, they are encredibly risky and you will not be able to solve the retirement savings gap. we have an america if that's where investors hang out. >> it is a -- profound time to be alive. everybody best pay you a tension because it is on now. a pleasure. nice to see you. i will see thank you next time i see you. we have another week of this.
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a lot of americans woke up this morning to yet another financial shocker. word of the biggest bank failure in u.s. history. washington mutual collapsed last night. it was seized by the federal government and bought by jpmorgan chase for almost $2 billion. >> we are breaking it down here looking at the collapse of what was washington mutual. ultimately sold to, yes, jamie dimon probably with a little bit of a thorn in his side, even this afternoon. during the height of the '08 crisis, our next guest says washington mutual's demise represents what the american banking sector had become and has become. an industry who had simply lost its way, lost its client focus, lost its opportunity seeking history and become nothing more than a gambling parlor with other people's money. this is no small undertaking to
do a ticktock. a lot of people write books including myself about the financial structure. you put together an audit almost. bank failure which is more -- and turned it into a story which is an incredible accomplishment. first of all, congratulations. >> thank you. >> thank you for putting the story together for us. what do you feel like you learned and we will learn by getting the intimacies of this particular culture and this particular time? >> i mean, i think i learned so much researching and writing this book. i think the biggest thing i took away from it is just how much our financial system has changed in the last 20 years. we moved so much from a system customer focused and friendly to one where five big banks are controlling a majority of the assets and they are so detached from their customers. >> i will ask you the same question i asked -- we have been talking about through the show today. and what do you believe is the critical shift? you agree with john taft here from rbc which is the -- client
first mentality. is the hippocratic oath of the bank's ceo ask that's lost is that fair? >> i absolutely agree with that. you can see in wamu's story they were known as the friend of the family. and then they grew into this huge fngal -- financial behemoth. they slowly became more distant from their customer as they grew bigger and gained more market share. >> when we were writing the banking chapter for greedy bastards here, narrativewise, the thing that struck me -- wrote it in the book was what's motivating all of this? why the change in the past 20 years? the answer seemed to be the -- traditional businesses where -- less profitable because of technology. then the desire to find new businesses as we came through the '90s decimalizing the exchange, all the things that were happening. is that a fair connection between the death of the old businesses at technologies' hands. >> absolutely. technology play as large role also regulation does. you know, banks used to not be
able to grow that much bigger. and that's change along the way. look, if you can grow bigger, why wouldn't you grow bigger? that's what every company wants. >> is it -- is being bigger the point? or is -- being the best the point? >> well -- >> i thought the point of america was to be really good at doing things. not to be really owe norm us en suck eight and take over the government and keep it. the american dream i thought was be good at it. not be really big and control it. >> i think you should be the best at it. just not sure that's what all these bankers thought. >> you are saying the bankers -- lost their motivation which is we need to be great at risk management. opportunity seeking. investment. things bankers used to be you a spired in their ego associated with. and now we just want to be he norm us absolutely. the ceo of wamu said we want to be the largest mortgage lender. he did not say we want to be the best at managing risk. i was often speaking to the risk
officers and -- they were just ignored basically. i mean, risk wasn't even a function in the bank at all at some stages. >> is it too simple to think, listen, trying to invest money, capital, or lend capital, i don't care what the mechanism is, in a way that's lined with the client to make money? is it really hard to do? it is just hard. i mean -- loaning other people's money to other people is easy. >> it is. >> is that too much of a simplification as to what's happened here. >> i mean, it is a simplification but i agree with you. that's what happened. that's what's happened. definitely. >> and the -- ability and -- isn't it the point -- as we want to say to tm, no, no, we will give you the status of the king of wall street or the bsd, right, the whole -- culture but
you actually have to do the job. >> right. >> you can't be a marine in the marine corps unless you are actually a marine in the marine corps. you can't freepd you are a marine in the marine corps. >> right. that's a good analogy. the trajectory of wamu is such that it was incredible how they transitioned from a bank and the -- in the span of 15 years, you would go into a branch, speak to someone, to this gee began particular clearing-house that was just sucking in mortgages and spitting them out. the customer was somewhere over there like trying to get someone on the phone and, you know, it was just a complete transition. >> again, congrats. again, special book of -- not just because of the tale but because it is rare you get a true peek with the intimacies here that are here from somebody with kristin's -- kirsten's credentials at "the journal." >> thank you so much. >> coming up on "hardball," elizabeth warren playing
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all right. a ri, what do you do? >> i will do what i do, dylan. i want to wish everyone a happy afternoon and do a different kind of rant today. dylan usually hands off the mike at this point of the show for people to talk about whatever they want. today i'm picking a new and different topic which is dylan ratigan himself. as many of you know dylan is ending the "d.r. show."
i want to take my moment to talk about why i found dylan to be a strong and unique voice. number one, he never operates on a debate frame by other people. he always starts from first principles and that's why if you look at this thing show covered like the economy, it was always different than the roy you heard most tv cover the economy. dylan also uses that approach across the board. here's an example i picked that has stuck with me. two years ago you may remember all these people clamoring to band islamic center near ground zero. i remember listening to politicians talking about the government and banning religious freedom. right here in our city. and it felt like we were in another country or another century. here is how dylan exploded some of the premises of that debate. >> there is a small group of well-funded extremists. we are not at war with islam. we are not at war with muslims. the only people that have ever funded a terrorist attack out of that part of the world on us was this wahabi sect.
it is an extraordinary failure of our politicians and media and our -- anybody else who has an opportunity to communicate information to fail to make that distinction between to fail to make that distinction is to risk a scale of conflict and a scale of disenfranchisement and alienation on this planet that may be convenient for tv ratings and votes. an owe bomb nation for human beings that populate this planet. >> that, i think, was one of those moments the entire debate that people were having seemed ludicrous. once you could take that step back and see the big picture. you can see the whole speech on youtube, too. another thing i do admire about dylan is his obsession with solutions. the media follows power. we focus on who is winning and who is losing. we often cover how politicians use problems to get power. i think that if you watch the show you know dylan spends a lot more time on solutions. what should we try to get the politicians to do important the public good? if you read his book you
probably know about a key to reforming our financial system. >> the basic regulator of all capitalism vanished for some, shall we say, special bankers. by beginning to mandate capital requirements throughout the entire lending system and putting swaps on a public exchange, we can realign the interest of the financial institution was our country. >> it is hard to get people to care about a free-standing policy proposal like capital requirements. it is a lot easier to attack big government or your opponent's party. dim an, though, has been hammering on all of us to look at the core structure of the financial markets. if you don't want to bail out more banks, and if the banks would rather take risk than hold on to your money, we are going to have to make rules to make them hold the cash and avoid defaults. dylan was banging that drum before most heard of capital requirements and i don't think he will stop. there is that dylan ratigan energy.
>> people of the united states of america, your congress is bought! your congress is than capable of making legislation on health care, banking, trade or taxes because if they do it, they will lose their political funding and they won't do it! i won't have a country that's run by a bought congress! i'm not going to work with a bought congress to try to be mr. big guy! i'm going to abandon the bought congress like teddy roosevelt did! >> that was dylan get rely mad about how money can freeze our democracy. in closing, sometimes people ask me is dylan really like that, like is he passionate? or is he putting on a show? if you watch the show you already know. he is deeply committed and totally focused and he is genuinely energized about everything he tackles. that's what's made this a fun and worthwhile ride. >> i am humbled, truly. thank you for taking your time to offer that and as we -- one of those as i walk out building,
learn more about capital requirements while i'm gone than when i was here. what was that guy talking about? i'm dylan. thanks to ari. we are here through next week. "hardball" is up now. what's this fight all about? let's play "hardball." good evening. i'm chris math use. in washington, let me start tonight with this. what's the difference between a democrat and a republican? when it comes to economics, what do democrats want done? what do republicans want done? who wants to help our -- keep a handle on wall street? who wants to keep the big boys up there doing whatever they want? who wants a fair tax system in this country? who wants to top to get all the tax breaks so they will invest more? who wants a health care system for this country and who does not? let's start with the best fight in america rig