rooms, that s is what we re talking about. no one in congress set up ownership. this bill was there, this was added. has to be some do we know when it happened? we know it happened before the bill was released tuesday evening. speaker boehner and harry reid signed off on it, we don t know why or who put it in there. what s interesting to your point, what jared said, that is the banks have fought they clearly wanted this but expended so much political capital on this one provision when they have bigger fights they want to fight, like weakening cfpb or getting rid of the volcker rula jebreal, jared can speak to is, more burden some and they want to get rid of much more. that is maybe the bigger question coming out of this. when i said symbolic at the beginning, the symbolic angle, they took a piece out of dodd/frank, they took a piece of the signature wall street reform law passed in 2010. if they could do it now and get away with it, does this embolden i say them i
or down. or they can be very complex. so, for example, you and i might decide to bet different ways on some portion of a bunnen of mortgage-backed securities, a credit defauld swap we won t get into that what that is the key part that s a risky bet. when that bet blows up, it can mean lots of big losses for banks. that s one of the reasons that the financial bust that occurred back in 2007 was so severe. and that the problem that senator warren is trying to do something about, this was something we addressed in dodd/frank, that is when those risky derivatives blew up, they were held in the part of the bank that gets insured by the federal deposit insurance and back stopped by the federal reserve. so they have a government backstop. that puts taxpayers at risk. dodd frank took the risky derivatives out of the insured part of the bank and put them
definition of what triggers the financial bubble and bust syndrome, it s underpriced risk. i think this part of dodd/frank is a big deal, because by taking risky derivatives out of the insured part of the bank they took away this risk premium, took away this factor that was depressing the price of risk that was systemically undermining the system. putting them back in the uninsured part, again, threatens to underprice them and that s the problem. all right. so, explain based on what we re hearing from jared, the banks have a huge interest in getting this done, something they ve wanted for a long time. how did this happen this week? do we know where that language came from? who the person is, who put it in there, do we know that story? we know citi group originally wrote. but we don t know who in congress got the provision stuck in the spending bill. how that s a mystery? it s amazing. when people talk about back room deals made in smoke-filled
would be related to watering down one provision of the wall street reform law. the president does not support that provision, but on balance the president does believe that this compromised proposal is worthy of his support. yet the democratic congressional campaign committee remained opposed to know social media and appealed to supporters to stop the boehner bank bailout. just moments ago dennis mcdonough arrived on capitol hill to try and twist arms with house democrats. it s not clear if that will work. plan b at this point appears to be a short-term continuing resolution. the white house doesn t like that and feels like it would lose leverage with an all republican congress. this is a real test for the president and the administration. if it doesn t get across the finish line, that s an indication reporter: to see whether nancy pelosi and elizabeth warren have more input or power with house rank in file members or whether the president still has some power with them so a
relationship, don, as a lot of relationships are that revolve around politics and money. right now the president is in line with wall street because of that concern about default and, in fact, he s looking for wall street leaders, the bankers, the people that he s now in touch with and talking to a lot to help make the case for him about the catastrophic threat of default. but it goes back and forth, you know, when the president ran for re-election ran for election, i m sorry, the first time he did very well by wall street. they pumped a lot of money into his campaign and once he got elected and the recession hit in force, he went after wall street and talked a lot about how there needs to be reform passed, the wall street reform law, and the relationship soured, in fact, after the midterms, the president acknowledged i ve got a strained relationship with the business community, i need to do something about it, and, in fact, you know, that s been up and down. right now as this fight