invest our money in really safe things. they invested it in risky, risky trades. there is a part of dodd-frank called the vocal rule that is about this exact same thing. saying that banks that enjoy fdic insurance, they are ton make risky bets and are not what to do proprietary trade. this rule has yet to be finalized. we have been waiting for a very long time. it is supposed to be done at the end of this quarter but it needs to be air tight. because if this rule is not strong and is not done in a complete way, we are going to see more things like this. where banks are taking our money and slapping us in the face in the wake of the bailouts and basically gambling with our deposits. so i want it reiterate. you deposit your paycheck, you get direct deposit, it goes into your bank account. there is some set of funds sitting there that are the deposits of americans in the bank, right? and that money is invested by this wing of the bank and it is supposed to be invested in safe things rat
and when they add call with investors in april, they did not report anything. so their cover gets blown. people start talking about it. i know, i have reported on this, that people in hedge funds are talking about who is this person with the massive bets accruing. they call them the london wlal. we know about this, right? people at j.p. morgan are saying, we re not sure about what is going on. now it turns out they knew more than they were admitting. my question to you is what is the question behind that kind of risk taking and policy on the table. are there things right now in dodd-frank or things down the line that would stop them from taking on those kind of risks? they are absolutely is. so i want it zoom out for a second and make everyone aware of where this is happening and where this risky trade was happening. please. it was happening in the chief investment office. this is where your money, your deposit or money, excess deposits wab technical term that means depositor m
because when he explained his father died tragically as a teenager his mom was able to keep the family afloat thanks to social security survivor benefits. new jersey republican chris christie was no federal tax spend liberal but when hurricane sandy devastatf devastated his states he became one of the most vocal advocate for the government to spend billions immediately to help out his and other states. for his republican governor rick squlot spent years and millions of dollars of his own money fighting obama care tooth and nail now says he supports that laws expansion of medicaid in his state. the governor said his change of heart came when his own elderly mother died last year. empathy, especially in elected officials, is a good thing. but there is also something frustratingly blinkered and limited about this form of persuasion. if it s going to take every anti-gay politician having a gay son to treat everyone like everyone else in the country
doing work in alabama. tremendous lawyer. tremendous lawyer. and i think what is interesting is the argument made in the states on fiscal lines. right, that there is some sort of way of using this kind of political judo to take the contours of the austerity boundaries, right? and people say, we got to cut and we don t have money and turn around and say, you know what, this death penalty is an incredibly, incredibly, incredibly waste full undertaking. is actually i think really hard to be conservative. and to defend the death penalty. you saw it today. people just get down and say, it is just retribution. typically what conservatives say is that a, the states shouldn t act like god, one. b, if something isn t working we shouldn t do it. and if it isn t working and it is really expensive, we shouldn t do that either. that is absolutely the argument that, you know, was made. and it s very compelling. but it is also in the context of having more and more innocent
happening in terms of the greek currency for instance, right? right. it is excess deposits is technical term. anything that isn t loaned out to mortgage or small business is an excess deposit meant to be invested in something safe. so right now, we have seen this and you and i have have talked about this on my show. we ve seen this remarkable battle happening underneath the kind of structure under dodd-frank in which lobbyists are trying to undermine the rules. what direction is the voccer rule, this crucial, crucial part of the reform, where is the status of that? the status is they are trying to complete the final rule. there are a lot of questions about what will and will not be permitted. there is a question about a london sized whale loophole that will go into the final rule. to get critical there is portfolio hedging. by the way, hedging means if i buy one thing, how i do offset in case i lose money. it makes a lot of sense to hedge