This week announced big decisions, the devalued evaluation of its currency and that it would start selling dollars. What are the possibilities for Global Markets impacts. And what are the geopolitical applications of this . Tim in terms of market has been unsettling. We have seen them react in the wake of this announcement. It will have applications for other american businesses that try to access and maintain market share is china. Beyond that, i dont feel it underscores the rig the currencywith mitigation that china has been guilty of for a number of years. This brings to the forefront the willingness of them to the newly manipulate their currency in a way that is advantageous to them. Host lets turn to you. A question about Cyber Security, something that congress is working on at the moment. Policyto ask about the of the issue. There is a bill that is under consideration that relates to cyber information sharing. The information that Companies Share with the government and some protections around and to facilitate it more. My understanding in talking to folks about this issue is that Financial ServiceCompanies Share a good amount of information with the government. Why do you newly why do you need legislation . A bill pending before Congress Passed by the house and under consideration by the senate. Why it is needed is this. Being targetedny by china, russia, north korea, iran, or a soviet bloc crime unit, it is not a fair fight for china to try to cyber fight one company. E need a team america approach we need to work as a team if we are going to identify and work against those threats. No one company, no matter how large they are, can do it by themselves. We need to communicate with governments and companies. Why that is helpful is that if you do it now for example, if i think you have attacked me and i turn that information over to the government, without be subject to the freedom of information act . If so, will the trailers get it and sue myrick company for negligence of data . Will regulators yet it and throw me in jail or find me or section me . With theon publics . Will my creditors have access to a . Will he give up a competitive advantage check . We are saying there should be a law that if you give the government cyber information in good faith, that should be subject to legal safe harbors so those problems are addressed ahead of time. That is the main reason for the bill to discourage to encourage teamwork. It is happening but it is not happening in a protected space . Tim it does not happen as robustly, quickly, or widely as it should. Dont like itthey because they think the government will share important information. That is important to the steelers. We are not talking about talking about sharing personal information. I wish it wasnt called information sharing. Cyber teamwork sharing would be a better word for it. It does seem to have is arted the moment and it question of when majority leaders and the senate bring it up. There are all sorts of curveballs that could come in. It does have the support to pass. What else does the industry need from the government beyond this bill to do the things you need to do to protect against hackers and work on this teamwork . When you hear Financial Services about how they dont know enough about what the government is doing. Once youour next step get protection around the information you share with the government . Tim there is a number of things they could do to improve cyber defenses. Number one, there should be a standard for Cyber Security defense against across all industries. Financial Services Industry has had such a standard since the 1990s. The pipe long is only as strong as its weakest connection. We are connected with other people in the retail space or they dont have a standard. Thehink our standards since 1990s should be extended across other sectors. Number two, you think about the capacity the government has at the department of defense, nsa, cia, department of the treasury, and more. And a numerous amount of expertise that if properly shared with the public and companies, our defenses could be more effective. Lastly, government could help by Funding Research that will go into future cyber defenses. This stuff changes every month. I want to ask you also about rule. Partment of labor they made this proposal. It is supposed to protect people who are getting advice on their investments. I know this is something your members care about a lot. Please tell us why you think labor ought to modify the proposal. Can you also comment on how likely it is that congress will get involved in this issue . We have seen democrats express concern over it, but do you think in an appropriations bill or some other form that congress would limit what the department of labor is trying to do or protrude precluded from doing . Tim newsmakers will know about this, the fiduciary rule, sounds like something from star trek. For certain retirement investing products, we should move to a better standard so that these advisers, brokers, investment firms can put the best interests of their clients first. Right now, the standards are suitable. If i am advising you, i can give you suitable advice. Im not obligated to give you the best advice. We agree that we should move to a best interest standard. It should be done simply and not with miles of red tape. We are trying to get the department of labor to say, do a best interest standard, but do it simply, commonsensical he, practically. Should not have different standards depending on what investments than arena youre in. Am giving you advice for retirement and nonenviron retirement, i should give you the same standard. We are saying take that same standard and apply across all platforms, matches retirement platforms. In terms of congressional action , they dont appear poised to take action on this issue. Some are writing letters and expressing their concern. Anddeal goes overboard congress will act. At the moment, there is watching. This is important because if the deal goes too far, we dont want people to be discouraged from giving advice or people giving advice to not provide that to modest income investors. I will ask you a question that would transition to the political side of things. What is your expectation for how the financial industry will handle what is likely to be a lot of fire coming at it during this election cycle . Particularly at the large Financial Firms . We have already seen candidates talk about this area how do you manage that . Tim i think it is expected, of course. Wall street can sometimes be a punching bag lately. The best thing we can do is try to understand that will be part of the political rhetoric. We need to make sure we address these issues substantively. Our mentors ask how we improve our reputation. You do that by earning the trust of customers, public, and regulators. Improving the industrys behaviors and compliance is important. It is doing better, still not perfect. A lot of the post. Frank regulations are starting to settle in. It is inevitable that during the political season, wall street is going to become a punching bag. It is the way it is. If i can followup on that a little bit, i have president ial politics questions for you. The industry has its own color questions. I would like to ask you about Scott Garrett, the chairman of the subcommittee in charge of Capital Markets has come under fire for antigate comments he has made to republicans. Goldman sachs says he will stop intervening to him. Others and the industry have considered whether to at further money back. Have you made any decisions whether you will contribute to chairman carrots or his group . Tim we have not made any decisions along those lines. Made were comments he concerning. In terms of any decision beyond that, we have not done that. Is that being discussed at all . Tim each company will have to decide for themselves how they want to approach that. Goldman sachs and others have in public he reported. And others have been publicly reported. That is not something we have done to decision about. Scott garrett was one of number of people who voted. Gainst Speaker BoehnerSpeaker Boehner is considered an ally of the industry. There has been a lot of talk about what to do about the very conservative Tea Party Movement type republicans who are attacking boehner as an example of some of the chaos that has come into the system. I know there has been talk over the last several cycles about trying to primary folks like Esther Garrett mr. Ga rrett. I think the industry anticipated a little bit. Ill was wondering if there would be any discussion in the next cycle about what you think about participating in the public primaries Going Forward . Tim i think the chamber of commerce got involved in those dynamics heavily in the last cycle. Our organization has a more modest local presence and footprint. Activelyot gotten involved in the primary process like you have described. I know other larger groups have. Jumping back to your question about the reputation of the industry, if you think about the black eye the industry has received leading up to the crisis, there was a lot of dumb behavior. Thatave to remind people almost every american needs a credit card, debit card, checking account, savings account, car insurance, home insurance, life insurance, a business loan, student loan, and more. It is an incredibly important industry for the economic plumbing and Financial Wellbeing of the country, not iras,tion 401 k s, ra disability insurance. It is an important industry that provides lots of Important Services and jobs for people across the country. We need to make sure there behavior and compliance is where everybody expects. That is what theyre trying to get to. That is a you improve the reputation. A shift to president ial politics. Youre from minnesota, i am from ohio. The republicans from iowa this. Eek game out of the race in iowa for me. I know you are a participant in the struggle last time around strawpoll. Lets talk about that. Of candidates said they would not participate, forcing republicans to cancel that paul. That poll. What is your feeling on the decision . Tim i think that is good riddance. Was not wellw poll run in terms of the methodology. History showed it was not a good predictor of anything. Not of the caucus, not of the nominee, not of the next president. It did not have any particular value other than to provide a distorted assessment early in the process. I am glad they got rid of it. Frankly, a week later, nobody cared about the results. There are so many struggles and flash bowls that anyone does not mean that much. And flasholls polls. How do you think the polls in iowa will shape out . Tim there is a long way to go between now and the Iowa Caucuses in early 2016. Forns are notorious deciding late. It is a more conservative state in term of the caucuses and and many other places. Not that many people show up. 5 Million People in iowa and only a few hundred thousand participate in the caucuses. It is a subgroup that tends to be conservative. Iowa favors more conservative and populist candidates. Donald trump is in the lead at 20 . That means that there are 80 of the vote that is out there not for trial. If someone can concede in consolidating that 80 , that is a winning formula. That may not happen in iowa. Levi percent could be the winner. 25 to be the winner. Is the talk about trumpeting the winner in these early primary states . Tim if you asked me a month ago i was a no. Seeing the surprising resilience of his appeal and his rawness and the ability to say anything and not affect his polling numbers, he may have more staying power than most people first realized. Im not thinking he will get the nomination, but i think he will be around longer at a more competitive level in this race than most people believed. I am from a state where Jesse Ventura got elected governor. In a world where the kardashians seem to be so popular for mysterious reasons. You never know. Especially in politics. Host while we are talking about politics, you mentioned your members are well aware there will be integrated topic on the campaign trail. One person doing that robustly is bernie sanders. He has been attracting huge crowds. He wants to rangers glasssteagall. Why the not a good idea . Tim if you look of the companies that triggered the crisis in 2008, the lehman thers, where stearns countrywide. These were not baked, integrated, large banking bothtutions that had robust firms and practices. If you read around the tape and reinstated glasssteagall, that would not have changed the footprint of the lehman brothers, a bear stern, of countrywide. Of aig that went belly up and causing problems. Arounds a revisionism avoiding the crisis and all of the awful aftermath if we had glasssteagall and place. That is not the cut line where the crisis started. How do you think republicans will handle this issue in the president ial race . We saw this issue be debated on the republican side four years ago. So far, republicans have not put out much of a policy plan. Rick perry has a detailed plan when it comes to the industry. Radiation of big banks, deregulation small banks. Regulation of big banks. Do you have any idea where this field will go in the field of republicans and the next couple months . Tim the democrats will be around too big to a great fail. I think we should all agree there should be no big to fail, and no too big to jail, no more says that. T. Frank on paper it says we will end that. A lot of people on both sides say i see that on a per but i dont believe it. I dont believe that is actually what will happen. There is too much discussion so they want to move to something tighter on too big to fail. To put winding down institutions into a modified bankruptcy approach echo i think the substance of of that will drift towards that. The substance will be no more bailouts, no more too big to fail. That is an of course. Of course we dont want more bailouts. Would it help to address cultural problems . If you are to divide commercial banking and investment banking. You talked about the crisis. We have also seen instant writ instant Interest Rate reagan, the Foreign Exchange randal Interest Rate igging, all of these things where it is attitude driven rather than by serving mom and pop. Tim there is this tension and i think you put your finger right on it between wanting these institutions to be like utilities in terms of their boring this, safety, and soundness. Those are good goals. On the other end of the continuum, you want them to be dynamic deployers of capital so that capital gets put into the economy in any form of lending. You get complete safety if you have all banks hold everything in cash. That is not a bank. That is a pile of cash. As you move around away from oft and say lending some that back into the economy is a good thing, you have to know where to draw the cut line so you dont make it too risky. Derisk bankssk and stifle the introduction of capital into the economy. Youre to balance this. In terms of your question, one thing to think about is the rest of the world. Our big banks we was but you up practically and you will compete against chinese banks and european banks that will stay with the hybrid model and be much bigger, we just put the American Companies at a global disadvantage. A lot of the business of those larger banks is global. That is one thing to consider. The other thing to consider is it is like jello. Those risky activities need to be regulated, but if you regulate too hard, they get pushed out into the unrelated space. I will suggest to you the big danger brewing right now is not so much in the regular did space. It is in the socalled shadow banking or shadow finance space that is unregulated. That is where you are seeing. Everage, risk, opaqueness i think there are signs of trouble brewing there. Host i wanted to ask you talking about new regulations the fcc reporting requirements on ceo salary . There are a lot of complaints of traded companies about how much extra it will cost. The county elections will help individual investors. What is your view of this and why is it a good thing for the people to know the difference or to the average worker tim it is fine. You wanted to be done quickly and fairly. If you have an organization with all american employees, your pay grade may look different than if you have a bunch of employees in india, or south america. The question becomes how do you factor that in in a way that reflects the Market Pricing in different parts of the world . That is one example of doing it in a way that makes reasonable adjustments. Companies are worried about the mechanics of it, to do it fairly and easily. It will onlythink have an impact in the investments people make . Tim i think it is good in terms of transparency, people being able to hold people accountable, putting in some context. It is one thing people may look at at a point of reference of interest. Host for a long time, we have been hearing that european credit card holders by the advantage because they had chips in their cars. What is the rollout rate for chips in the United States and why has it taken longer . Munize so long cards ising chips in easy. The trick is getting people to use them. It is easy enough of walmart and target to do this. The resistance is coming from who aretailers reluctant to make a Technology Investment for the chip cards when they may have just a small momandpop operation. On the other side of that coin, Companies Say they can do it for 200. What is the holdup . There is a lot of anger pointing back and forth. And betting cards with embedding cards with chips is being done as we speak. Host i would like to talk to you about it coin bitcoin. What is your view of the challenges . Activitymuch of that will move from regular did space to unregulated space in part because of technology or in part because people are saying the regular did space is too partisan too burdensome . Bitcoin is interesting, provocative, it has gotten a bad rap because of the early stigma around it is are there bad behaviors it is hiding because of its ok to this, criminal activities, the silk road server got busted. I think it is a novelty at this point. There are a few interesting things underneath. One is called Block Chain Technology which supports bitcoin which has other applications and could really be disruptive or interesting, down the road. Bitcoin, are you going to put money into Something Worthy value fluctuates 30 a day . You may put 200 into it for fun, but i dont think youre putting 3 million into it. On bitcoins, im fascinated by this topic. Do you see implications for Cyber Security their . I know that is a lot of what the roundtable does. Payment using block chain would be more secure than a payment that doesnt . Tim Block Chain Technology is foundational and you can build on it including security features. There is a norm is interest around the potential a norm is interest around watching Block Chain Technology. Future payments will get interesting over the next 10 years. I will suggest to you that people exploring Block Chain Technology will be at the root of new payment applications that will be intriguing. Are we at a point where members will start to invest in them th . Tim our members are looking at all kinds of new payment options, biometrics, authentication, improvement to the card, noncardbased platforms, mobile payments, realtime payments. It will be an interesting space over the next 510 years. Host we are just about out of time. One more question on the president ial race. You talk about the resident to raise and we have to talk about donald trump. You talked about handling trump as compared to wrestling with a hurricane. After this debate, do you think are you impressed with how anyone is handling him so far . Tim i dont think he is being handled. I think the only one handling him is him. He is a force of political nature in the sense that he is like a tornado. It seems that the normal expectations and rules dont apply to him. He can say anything and it does not seem to damage his polling numbers. Anyone who tries to change or alter that will not succeed. We will see, like a tornado, if it burns itself out or runs its course. It may be more subtle than that or more nuanced than that. It may be that there is a fundamental message and shift in the political culture of the country where they are saying i know it is a little off, i know it is offensive, but i am so sick of the way the politicians talk and look. They all sound alike and dont say anything. Even with all of his warts, we like his rawness. The question is what they want to date him or marry him as a president . That fork in the road is coming. That is the big question here too. The party wrestles with his every four years and ends up going back to the establishment candidate. It may not be the case this year. And a lot only august can happen in 60 days, much less six months. This could look very different index giving. There will be 15 other developments in this race that we currently dont know that would change the dynamics. It could favor trump, a good disfavored trump. What is true now wont be true here. Host that is all the time we have. Thank you for being a guest this week. Tim happy to do it. Afternewsmakers is back our conversation with governor , the ceo of the Financial Services roundtable and himself a president ial hopeful in the 2012 race. Michael, i want to start with politics. You talked with the governor over his influence on the campaign this year, not just on the president ial election but on some of the congressional seats. What did you learn and what is the history of this . . F the sector and politics s group is a small player, player group is a major in politics. In president ial cycles, we have seen a shift from supporting Democratic Candidates in 2008 at the federal level. Since then, it has slowly moved toward the republican side. The interesting thing there where the governor and his group are involved is how they will handle these congressional races. Particularly guys like Scott Garrett who say things not politically correct, not supported by large swaths of voters, their clients, their customers. They have been talking for a while about trying to find more moderate republicans to replace these guys. We have not seen it happen yet. One race where they try to play that was in michigan. We will see if that expands at all in 2016. Host from a president ial politics standpoint, with senator sanders pulling Hillary Clinton to the left considering concerning industry, do they have a concern about the outcome of the president ial race this year h . Could impact the industry . Absolutely. I think it is especially true because the approach wve