Belts and suspenders internal compliance regime. The rule is 920 pages long. Naming the first female ceo in the Global Automotive industry. Exemptions several we believe with yang yang and that allow banks to continue proprietary trading in some late developments on a budget instances. Does that mean the rule will not completely limit excessive risk deal coming out of washington. Taking . The rule for good evening. Moments ago, Budget Conference Committee chairman paul ryan and proprietary trading is a difficult thing to do. Senator patty murray announced the reason is because it is difficult to distinguish proprietary trading from the their answer to avoiding another types of transacting that are Budget Shutdown with a budget good for the u. S. Financial deal, setting the spending cap markets like Market Making and underwriting. The rule allows for these at approximately 1 trillion a the, higher than the 96 exemptions to encourage these activities. 960 billion in the current. It does involve some judgment, but lets not forget that there is a backstop that prevents the difference will be made up Financial Institutions from through auctioning government incurring substantial financial airwaves and increasing pension loss or exposing themselves to premiums for federal workers. Risks that might give rise to a therell be no major changes to substantial loss. You believe that sixmonth taxes or entitlement programs at compliance marks for banks that this time. The outline is not the grand are sized at 50 billion or more bargain many had hoped for, but it should be enough to solve the , do you think that is going to be an issue . Spending battles that have months is the six defined congress, but still, it very quick time the bomb or the will take convincing of rank banks to change their systems and support the reporting. Andfile members. Paul ryan call this a step in the right direction and focus on for these large banks, they have the most stringent hurdles to republican selling point. The bill reduces the deficit, overcome. It does not risk raise taxes, the Smaller Banks have more breathing room and later reporting timelines. And cut spending in a smarter nothe volcker rule, it is way. We knew if we force each other to compromise corporate tables, going to be enforced by federal we would get nowhere, so that is regulators until 2015. What happens in the meantime . Why we decided to focus where wayhat time for some act or the Common Ground is. There may be Common Ground, but there is plenty of both to get around the rule . We have more than a year . Banks do have to continue to plenty of room for disagreement. Tax increases and entitlement conform to the role in good faith prior to the deadline. Form cannot be avoided forever, said patty murray. The biggest banks only have six we need to acknowledge our nation has serious longterm months in which to comply and in which to start reporting their metrics and in which to start fiscal and economic challenges this deal does not address, and the budget process has been implementing their compliance program. Broken. U. S. Chamber of commerce are not too happy with this. Main street that it will take convincing of members on both sides of the aisle. Businesses will be hurt because the rule is going to make it harder for them to raise republicans worry that eating the sequester now will mean more capital. Do you share the chambers concerns . Painful cuts to other programs the rule allows institutions later. To engage in the main street the house will be the first to take up the bill, work lending that they have always understood ryan expects to see engaged in. It pass where congressman what it prohibits is the proprietary trading which is the ryan expects to see it passed. Shortterm speculation. It is a different issue in the senate where many republicans i think that much of the activities around main street have said they will not vote for an agreement that increases that banks engage in today, they spending cuts they have fought can still do. How much reform can be done hard for. If the local rule volcker reaction continues to flow in, but for now we have a deal rule is not fully funded . Before the friday the 13th funding will be needed. Deadline. Quite a change of pace. It will certainly take a lot of yang yang, thank you. Effort for examiners to implement themselves. Also, this evening, the United States senate has confirmed i suspect that funding will be provided in order to enforce this rule. Commerce been mel watt as the sir, thanks so much. Next director of the federal Housing Finance agency with a 5741 vote. Pleasure to meet you. Coming up, gm names mary barra in october, the congressman failed to get the 60 supermajority votes needed to advance his nomination, but as its next chief executive. The progress of Senate Democrats change the a simplerequire women in top corporate leadership posts next. Majority of 50 votes to advance certain executive nominations. In south africa, tens of thousands of people turned out to pay respects to nelson mandela, the prisoner who became peacemaker. Mandelas life was celebrated with singing and dancing as well as emotional speeches as heavy rain fell at a stadium in johannesburg. Dozens of World Leaders attended the service for mandela who died last week at the age of 95. Prison but years in he promoted forgiveness and reconciliation when he was finally freed and later became south africas first black president , and president obama said the world should try to emulate mandela. Medina would emerge as the last great liberator of the 20th century. Like gandhi, he would lead a movement. Like dr. King, he would give voice to the claims of the oppressed, and the moral the sensitive racial justice, emerging from prison without the force of arms, he would, like abraham lincoln, hold his country together when it threatened to break a card, and like americas founding fathers, he would erupt Constitutional Order to preserve freedom for future generations. On his way to the podium, he briefly shook hands with cuban president raul castro. Nelson mandelas body will lie in state for three days. He will be buried in his rural childhood village. The bottom line continues in a moment. General motors named mary barra as its new ceo. Once a factory floor worker, she will be the first female ceo in automotive history. Su keenan joins us with the story. The new ceo inherits the company that has emerged from near collapse after a fiveyear multibillion dollar government bailout. Her rise through the ranks is as unique as the companys position now. Mary barra is an engineer who first worked at gm as a college intern, became an assistant to ceo jack smith, was sent to stanford for her mba and rose to become head of product development. An honor for me to be able to lead this team. Crossovers with the highest quality and continue to drive value for our shareholders and all of our stakeholders. Lean andmpany is now light on debt and has one of the countrys newest and most acclaimed lineups. It faces big competition from rival toyota. As one industry observer notes, after years of ceos, gm finally chooses an engineer for its top role. We have been through a lot. We have learned a lot of lessons but we have never lost our spirit of wanting to win. As barra takes over the top spot in january, she says she knows the company backward and forward. At women in look top corporate leadership here in how the equityou the United States. In a Study Released tuesday, markets finished for todays catalyst an organization which session. Stocks fell after the s p 500 each a record. Focuses on women in the budgetrs weighed workplace found that in 2013, there has been little progress for women in top leadership in negotiations and Economic Data fortune 500 companies. To get a sense of the timing of i spoke with catalysts incoming any fed stimulus cuts. Lets look at the numbers. Ceo. I began by getting her reaction the Broader Market s p 500 was to mary barra becoming the next down by five points 21802. Ceo of gm. The Dow Jones Industrial average was off by 52 points. The nasdaq composite was down by womenighted to see eight points to 4060. Succeed in such an Important Role and to become the first woman to lead a car company. After the bell, mastercard raised the firms dividend 83 it is a great step forward. Time, we will be and approved a 10 for one stock split. The Company Raised its dividend more excited when we stopped to 1. 10 a share and authorize counting firsts. Repurchasing as much as 3. 5 billion of stock. It is a big bill because she is the first. At moreeet is looking we will make progress when we stopped counting them. There are situations where a intensive government scrutiny of trading in an effort to prevent financial catastrophe in the future. Is a step closer woman is qualified for a top level position but she does not to reality. Get it. Peter cook reports. His gender discrimination the reason . There are a number of factors at play in workplaces. Men tend to be promoted based on this ushers in a new era of their potential. Women need to prove themselves a oversight for wall street that stone their performance. Is already changing the way the banks do business with regard to there are a number of factors trading. That is why they have been fighting it for three years. That happen. Everything from women being wall street wont like this excluded from Important Networks final version of the rule where they can build approved by regulators. Relationships do not having access to what we would call the , itnced proprietary trading high potential critical jobs that are so important to limits their ability to invest investment. In hedge funds, private equity, barras hirings. But it is the late push by regulators to toughen the exemption in the rule that will mean for the culture of all mail trouble the banks the most. In the car industry . They wont like the final it is a really important message, not just in the auto hedging exaction mileage in particular. Industry but across the board thanks must show that a hedge demonstrably reduces or about womens leadership potential. She is sending a message that mitigates one or more specific says it is about talent. Identifiable risks. Bart chilton tells us that means she is succeeding in this no more london whales. Company in an industry that we might think of as maledominated and that really challenges banks are prohibited from stereotypes that say women can entering into speculative only succeed in certain sectors. Invest. What does it say that it took they can hedge legitimate Business Risk but they cant her 30 years . Speculate. What the rule requires now which she has been there since she was a teenager. Is different than it was 2. 5 she has come up through the ranks of that company. Weeks ago is there has to be a correlation analysis. It is interesting to see that in her most recent job, she was there has to be a correlation between the risk and the hedge. Responsible for product development. She was in a Critical Role and chilton says without those we need to see more women in those Critical Roles so they too changes, he is not sure he would have backed the final rule. Can advance. In some areas, the banks got it is not the norm as you more latitude from regulators. Just alluded to. 2013yst is out with its the language on Market Making, buying and selling securities for customers is still pretty loose. Census of fortune 500 Companies Trading foreign debt will be and the plans they have to exempted as well. Advance women to top positions going toay the role is in corporate suites. What were your findings . Our findings show that women hurt u. S. Bank competitiveness and drive risk elsewhere. Continue to be underrepresented somehow all these people are in leadership. Womens representation in going to go to New Hampshire to executive officer roles is raise cash you are kidding yourself. Theyre going to take the same risky bets as hedge funds with stalled and stands at 14. 6 . When we look at the board rooms less regulation. In the fortune 500, we see for who is going to be providing the loans to do that . The same banks that are now eight consecutive years, virtually no change in womens prohibited from having the sorts representation. Today it is at 16. 9 . Of operations in a more highly i think it any idea why . Regulated environment. The rule will only be as tough as the regulators enforcement which is why wall i think it goes back to where street may wait before challenging in court. Companies are looking for talent and whether they are being intentional about ensuring there is a level Playing Field so women can advance. What is the business and financial case for advancing women to leadership post . There is a number pieces of the business case. Women are half the population and half the talent force. They influence the majority of purchasing decisions. If you want to look like the market, serve the market, tap into top talent. Our Research Shows that on average, those companies with more women in leadership that was the incoming ceo of catalyst. G. M. Coming up. Jeffrey hayzlett heads to the l. A. Auto show to talk with gms Vice President of Global Design to find out how his team is trying to alter the perception that cadillac is a luxury car or your grandparents. We have a preview later on bottom line. Join us at 9 30 for the entire episode of season we only on bloomberg. Keep in mind, it was three years in the making. How much did all of the work set back taxpayers . How much did the tech surge cost . Megan hughes looks for the full price tag of obamacare. The frightening answer is we dont really know how much it cost. We have new numbers but they are not particularly illuminating. Hhs has confirmed it owes 630 million. It has spent 319 million through october. We also know that since october 1, they have wrought in dozens of computer engineers and programmers from google, oracle, red hat and that costs money. Lawmakers have been trying to get to the bottom of the total cost. How much has the Administration Spent on the exchanges in total . Sir how difficult is that figure to give me . I would like to get it to you in writing. No number has been supplied. Secretaries of alias will be testing again secretary said will be sebelius testifying again tomorrow. Databases arent clear. The contract are specifically labeled that the work is for health care. Gov. They also span several agencies. We know a lot of things that are piecemeal. Government Accountability Office is working on a review of the cost of fixing the site that no one will say how much the text search costs. Back to you. Continues,tom line we have headlines from asia. We will be right back. Welcome back to the second halfhour of bottom line on Bloomberg Television. Thanks for staying with us. Lets check where the markets finished this session as we had the bottom of the hour on tuesday, december 10, 2013. Stocks fell slightly. Investors took a breather from a market that hit another record high on monday. The Broader Market s p 500 was down about a third of a percent, finishing the day at 1802. The dow jones falling a third of a percent at 15,973. The nasdaq was off by about eight points today at 4060. Lets get a check of some of the top stories we are following at this hour. President obama called on the World Leaders to embrace Nelson Mandelas universal message of peace and justice. Tens of thousands of spectators sat in a heavy rain to attend the Memorial Service in a South African stadium including three former u. S. President s. To apply urged people the lessons of Nelson Mandelas life as the man who emerged in 27 years in prison under a racist regime embraced his enemies when he finally walked to freedom and promoted forgiveness and reconciliation. This years Nobel Laureates were honored at an awards ceremony in stockholm. Francoise englert and peter higgs shared the physics honor. Robert shiller and Lars Peter Hanson shared the nobel for economic sciences. At the organization for the prohibition of chemical weapons, won the peace prize. In the ukraine, police have stormed a protest cap in the center of the capital. Police tried to dismantle barricades surrounding the camp. Have taken up positions on the perimeter of the camp. This after president Viktor Yanukovych said some demonstrators arrested in the massive demonstrations will be released. President yanukovych also valid to renew talks with the European Union on a much awaited trade and political agreement. That is a look at the top stories in the news at this hour. Lets look at the top stories in asia where antigovernment protests have also been going on in bangkok for the past two months. Thailands Prime Minister has dissolved parliament and is calling for elections. Mia saini joins me from hong kong with those details. Hi there, mark. Here is the latest. The protesters had increased their involvement. Have seized government buildings and the are doing this without much police resistance. The Prime Minister has asked for calm and peace. They are upset with the current Prime Ministers view to grant amnesty to her brother. Yesterday, she can retreat no further. She offered only an emotional plea. The opposition is calling for an unelected peoples counsel and also her quick this is what voters are faced with. The third election in some six years after the Prime Minister dissolved parliament. And her facing yingluck party or the Democrat Party which hasnt won a National Poll in two decades. The opposition could also boycott the poll. That is what they did in 2006. Many professors that we are speaking to say that is very likely. One professor of Southeast Asian this, thailands crisis will not be resolved unless there is a compromise or a civil war. Wax as we mentioned earlier, World Leaders were in south africa today to attend former president Nelson Mandelas memorial. Chinas xi jinping chose not to go. What was the reason . China did not send president xi jinping. Instead, it sent the Vice President. The spokesperson for Chinas Foreign Ministry said that it shows that china attaches great importance to south africas funeral arrangements. We understand that president xi did express his deepest condolences over mandelas passing. To give you a sense, some of the people we are talking to say that xi didnt go because he had highlevel economic meetings pertaining to these most recent financial reforms that he must attend to. Others they that it would send the wrong signal to the chinese people, that china would support a man who after he came out of prison was able to rally the troops around a message which is centered on freedom. All of this as he went those are two sides of the story. To memorialize mandela. Mia saini from hong kong, thank you. Plane may look a lot like the 737, but it is a military aircraft equipped to want submarines. It has employed several of the airplanes to japan to increase u. S. Military presence around the disputed islands which china claims. It is the firstever deployment for the aircraft which has been in development for nearly a decade. Here is a look at the Game Changing capabilities. Still ahead, we go inside ups. Bloombergs National Correspondent carol massar ticks assigned the scenes to focus on a system called override. All they we have been taking you inside ups. The worlds biggest package shipping company introduced orion, a system that crunches data to save a fraction of a mile on a drivers daily route. Carol massar has been reporting all day from the companies have in louisville. She tells us the big deal is those fractions of a mile and how they could potentially add up to savings of millions of dollars a year at ups. The company has been working on orion for a decade. The Software Engineers at ups came up with a mathematical model that looks into the physics of the driving route. This is orion, the algorithm that makes ups take. Algorithm is not a word you would expect a here from a ups driver. The new technology is changing the world of package delivery. We are a Trucking Company that has technology. Today we are a Technology Company that has trucks. Orion is a program 10 years in the making. Its objective, to find the fastest ways to get packages to your doorstep. With 120 deliveries a driver, there is more ways to serve the orion is looking at trillions. It is going to run 200,000 different alternatives and say, here is the best way to deliver. Track has over 200 sensors that monitor everything drivers do from turning on the vehicle to unloading boxes. All of that fed into the mathematical equations that prioritize such variables as distance, time, traffic and cost. Our goal wasnt to dramatically grow efficiency. It was trying to take a look at some small gains. Our scale, small turns out to be rather significant. Starting with the companys first to deliver, a model t ford in 1913. 11 years later, ups built the first Conveyor Belt system for handling packages. Year, it is orion. How is orion a game changer for ups . 2013, obrienof is going to save 1. 5 million gallons of fuel. Orion is going to adjust changes by 10 minutes. Here is the new plan. When we think ups, we dont think technology. I am sorry but google maps are not Accurate Enough for a ups driver. We have a worldclass i. T. Group that many people dont know about. Carol massar, bloomberg. Orion is being introduced this year to 10,000 of upss 55,000 drivers in the United States with a rollout to every driver by 2017. Coming up, Holiday Shopping is in full swing and lets face it, the number one category has to be toys. We will bring in the ceo of a company who is hoping something to ad crazy kart will lead green as in profitable christmas. Bottom line on Bloomberg Television continues in a moment. Consumer spending picked up after it thirdquarter slowdown and may continue to rise as a second wave of shoppers heads to toy stores for the christmas rush. But in an executive perspective. He is the president of a multimillion Dollar Company that makes toy scooters. Welcome to bottom line. We were talking during the commercial break. You and i havent met. I have to start by asking you to tell the story about how this product came about, this scooter that is all the rage now. It was one of my employees who came to me and said, this could be the greatest thing. It was seven years ago. I sent him to Business School he that you silly a ucla, used that as his thesis. How do you improve on a scooter . It seems like it has been around forever. This is motorized. It is like a bumper car but when you raise the magic bar on it [laughter] the overall Business Climate in the toymaking industry has industry. Has the sluggish economy has affected your bottom line . I know that in general, the toy business is somewhat tougher than it has been. That is because . I think that there is many theories. A lot of people think that kids are being drawn to technology, ipads and phones basically. Consumers have been very particular about how they use and how they spend their discretionary income. What might that mean for toy sales . That when then deals are sharp, the consumers come out in droves. They are very sensitive. Sensitive in terms of the price . That is right. When they perceive a really great deal, they will come out. What do your companys profits look like during non peak sales periods . I would say two thirds of our profits come at the end of the year. Really . This is the big season for us. What has this done in terms of your workforce . Has it enabled you to hire more workers because of the demand . I am hiring a whole team for social media. The social media on this product it has had to viral videos two viral videos. Was that something that before may have been in the background but then you realized when the word got out we saw some of that video just a moment ago, that it is just taking off . I could not have imagined the power of social media. The same guy made these amazing viral videos. That made changed the whole dynamic of the product. Your target customer is young people. Give us a sense. What have they been saying . You are checking out social media to see what they are saying about your product . It is not just young people. Is, shut up and take my money. That is one of my favorite comments. That is somebodys father right there who is having a good time on the scooter. The toy sales, are they indicative of americans comfort with the direction of the economy or our sales just a holiday trend . People always put their children first. We tend to see toy sales as being very resilient even import economies. Is that surprising to you . My kidsays want to put first too. It is not so surprising to me. Would have been would have parents been telling you . We see parents kicking their children off and using it for themselves. Your stiffest conversation, where is that coming from . We find competition from the xbox and ps4. This is an expensive item, so those would be the type of big purchases that would compete with our product. Did you see something there that other people didnt see when you mentioned social media and xbox, when you mention folks who are staying at home and staying inside and they are on their couch and they are doing this all day. Did you see this i got something here because this is a Good Alternative . At the very least, we are getting people outside. They are not tethered to a phone or xbox. Excellent point. , the bigee there advantage for the wheels business is that there is no substitute for motion. You can simulate a toy car. You can simulate a lot of things on a videogame. You cannot simulate that rush of speed. What is next for you . We are just trying to keep up right now. Social media is our big focus in the future, to help people understand. Is this just a u. S. Phenomenon . All over the world, people know about the crazy kart. Germany is like the home of motorsports. This appeals to people in germany it is a star in germany. This is such a good story. Mr. Calvin, it is a pleasure. Thank you for coming on. Up next, Jeffrey Hayzlett heads to the l. A. Auto show to talk cadillac and find out how designers are trying to make it the coolest car on the road. We previewed tonights edition f csuite when bottom line continues in just a moment. That is a look at the futures markets. Bloomberg brings you a market check at 26 and 56 after each hour of the trading day. Welcome back. On is bottom line Bloomberg Television, streaming on your tablet, phone and bloomberg. Com. Lead thetime cadillac luxury segment in the United States was 1976. Jeffrey hayzlett went to dla autoshow to talk with the Vice President of Global Design of general motors. Jeff wanted to find out how mr. Welborn and his team are trying to shed the perception that cadillac is a luxury car for grandma and grandpa. The l. A. Right here at car show. Is this like the prom for you . I wouldnt consider it the prom. It is kind of like a traveling circus. This doesnt look like my old mans cadillac. This cadillac behind me looks more like the kind of cadillac i would buy after my second or third divorce. [laughter] we are having a lot of fun with cadillac. We have more cadillacs underdevelopment today than at any other time in the 110 year history of the brand. Brand, i look at the bankrupt company, bankrupt city, doesnt reek of luxury brand anymore. What are the challenges for you . The challenges are many. One is time. We dont have time. The customers and the market are not going to wait for us to do the right wing. Have many years do you have . We need to move fast. Gaps that wetain have in our portfolio that we need to fill with the right product. Is is one of the gaps right here . Fact that is one of the gaps. I would love to see the car in production. It has or shape to it. It is a very different proportion. To move andinue evolve the brand. Cant stand still. What was it that caused you to say, we cant do it like we used to . We cant be our dad cadillac . We had to look in the mirror and see what the challenges were and get out of detroit and take a look at the whole industry. I think during the darkest days during bankruptcy, everyday you would hear the terrible headlines. I brought the team together, the design team and i talked about how we are going to get through this bankruptcy. Side,e out the other everyone is going to want to look at where we are from a design perspective. How do you measure success . It is a lot more than a pretty picture or a pretty car. We are not designing this to hang in the museum of modern art. We want people to purchase it. It has to be the kind of compelling design that connects with people on an emotional level, that they have got to have this vehicle. Csuite hayzlett, tonight at 9 30 on bloomberg. Get the latest headlines at the top of the hour. That does it for this edition of bottom line on Bloomberg Television. I am Mark Crumpton reporting from new york. Thank you so much for joining us. I will see you tomorrow