Tenets of working make a lot of rules work. Let alone the super vision and the capacity to ensure they do. So what are the priorities . In my opinion, first theyre finalizing the orderly liquidization authors. And the thirty paper takes a hard look at this to see if it is a robust end too big to fail. To whatever piece is the right to the agency that it can be resolved. If it too complex, doddfrank tells the agencies can you go come you tell the same complex banks. No more crossborder bridges. Structures often subsidiaries that are more easy to resolve. We need to hold regulators accountable for acting on living wills said the big bang sorry so i requires make more resolvable, not step away if it wont happen, lets do Something Else from which no one agrees than few specifics are getting hand. Orderly resolution they think is important and vital. New capital rules, new liquidity rules and a keen eye to Operational Risk management, all of which can be best insured, not only by new rules, but by tough standard good hold corporate boards of directors at the top in Senior Management very accountable for ensuring institutions take no more risk than they can afford on their own. Thank you are a match. [applause] i promised each of the panelists a brief followup statement. So why dont we start perhaps in the same order the presentations were given. Scheherazade come if youd like to add anything. I think you got the general gist that we dont know when the next is coming from and we are not ready. I think id just like to emphasize that. Theres things we can do to understand risks because theres a nuance of risk that is shifted and the markets perception and reaction to that risk. Its more visceral, faster, the damage is much more than we know the next time this thing happens it happens for real, like simon said its been reiterated, is going to be much worse. Sorry. And. First topic that the papers put together a really wonderful and comprehensiveness and clarity and am really highlighting that there are so many unintended consequences and so many crosswinds come even within the rules that have been adopted in those that are yet to be finalized, that it does create a great deal of complexity risk, even if one accountable board wants to do the right thing. At this point can we find there so many boards struggling and spending so much time simply trying to understand the interplay of the rule. And lastly, on the operational difficulties, were introducing quite a number of new entries if you will into the system through doddfrank, whether its the clearing the central claim, and i think were all sort of understating the complexity thats involved in handling all of these and then being prepared to sort of flip the switch, even if its phasing to do away for real great confidence in. Simon. Through small followup points. Too many of us, and not coming to participate in these discussions coming up at a various radio tory hearings, the complexity of the current regulations looks very much like the outcome of an enormous amount of industry lobbying and assistance on the complexity and a lot of added rules. For example, around the vocal role. He said now is so im complex unworkable. If you say excuse me and several other americans for feeling, for feeling the industry is playing a deep, clever and wrong political strategy. Then prove me wrong. If this is the result of karens work, change his attitude and becomes cooperative with the ftc or the fdic or any other agency and really shifts away from this incredibly obstructive lobbying, that would be huge and terrific and id be happy to write about that offer. Two points for caring. I read your papers and i think theyre very clear and forthright and you should be commended. But two questions come to me. First of all, do you agree that under current circumstances and current Market Perceptions, that very Large Bank Holding Companies can borrow more cheaply than is the case for smaller and mediumsized things and this may well be due, according to people like Richard Fisher and sheila bair, may well be due to the continuing perception that theyre too big to fail. And the second question to you but they did as i understand your points about order of liquidation and he said very distinctly just now, please tell me how a global megabank that is inherently crossborder with 100 countries, jpmorgan chase, working around the world with a very complex crossborder jurisdictions that in a nicely summarized for derivatives transaction. How will order liquidation actually be implemented by the fdic presented by the treasury when these banks are so large and so complex and there is no crossborder global Resolution Authority . Great questions. First ill start off by again agreeing with you. The body of law and rule is incredibly complicated. Some of that does pertain to the evil banker hypothesis. Im amended hereby the corollary evil lobbyist hypothesis, but i would add my own cause, which is the cubicle regulator aided and abetted by the expert lawyer hypothesis. And maybe in my practice i spend a lot of time. And the bells of these rules. And when you say okay, i think i had it. Heres the definition of proprietary trading. Some lawyer will say well, actually there was lawler versus knickerbocker case in 1842 in which that definition was not upheld so for this to be really clear, with another 52 pages in the federal register. That may be good lawyering, but it is incoherent rulemaking. I dont know what to do about it. I just say this is one of my personally favored hypotheses is a big problem of complexity risk and why i go back to a few clear standards to which real institutions accountable, i written on the poker rules mav is hispanic . We have to make some clear decisions here. This current come in never never land thats largely constructed by people to do the job theyve been given a stalling Financial Markets place. And its importantly particular to your questions. We have a square peg come watch as the Market Perceptions of very big banks remain too big to fail in the round hole of the orderly liquidation authority, which is a flat statutory prohibition in the United States doing so. Some people tell me the answer to the contradiction would be that congress would intervene and fix this somehow. If you will find the congress that fixes anything anytime, you let me know. But the law is very clear. Could the fed somehow override that barrier and step in . Maybe. Title 11 and doddfrank doesnt get a lot of attention. It cars the fdic from doing what he did quite definitively. At the very least its hard if not impossible. You have this bad situation and more markets are engaging in ongoing moral hazard, accounting for some of this funding differential that simon rightly references. At the same time, they are plain and morally without the safety net that would save them from their sins, meaning that market shock in the case of either operational solvency or Liquidity Risk any Large Institution would be worse. It would be a limit on steroids. What a naco back to irenic liquidation authority. Could it work in crossborder situations . Definitive work in crossborder situations . Not well heard about 80 are held in the u. K. And is particularly true for institutions like jpmorgan. Fixerupper in 70 countries, but theyve got in bulgaria is not systemic. Maybe in bulgaria it is. Thats a different question. Those are afterthought operations. That is why the u. S. In the u. K. Are very far wrong and what they call a Crisis Management group, to resolve the aspect of crossborder banking. Is it done . No. Should they finish . Yes. Then i can see her question with a lot more confidence. One thing we had to think about really have a talk about is Monetary Policy has been so accommodative that is distorted risk, returns and its got to be unwound at some point. Thats a great market timing issue and concern, which might be the next crisis. The other thing is what weve all heard today from everybody is doddfrank is imperfect, but it also has useful elements. It has elements that you think about and how good the days. We need to continue to think about it. The orthodoxy of doddfrank is the only solution as a scary one because the world of markets in Everything Else evolve. If we think doddfrank is this going to save us from the next crisis, where lake the fridge behind the wine. People go around it. Simon company talked about monetary fiscal policy. Their new book deals with that. You want to give this a short observation . Was some interest in the United States on fiscal Monetary Policy . First of all, i would encourage everyone to read the work again on this issue. They have so won the papers if you dont have time, theres a great editorial opinion piece in the wall street journal in september 2009 called the blog that ate mandatory policy. They talk about how today to fill Financial Institution undercapitalized taking a risk, having big losses and operating and zombie formic Monetary Policy much more effective when you go into crisis. So while the mechanisms to work. Its a question of what will happen when undercover, assuming we do will recover. How that affect the ability of policy to control the economy and the ability or the impact of various changes in fiscal policy. On our fiscal cliff issues come i would say more like the distraction from the fiscal chaos will see after the election around these issues. What i would worry about is not so much the direct impact on ice, much more the stock markets, much more how it will affect other countries. To take europeans and throw an interest in risk premium globally as everyone got scared in the running running into u. S. Treasuries paradoxically because we stabilize expectations of the u. S. Fiscal policy. Whats that going to do to spread entrance or italy or spain . Its only going to go down. So our ability to damage the world is very important. I still worry how they come back to us through the Financial System and how the impacts is more affect this. I dont think anybody here is evil. Theyre just doing their job. [inaudible] [laughter] im not a lawyer and i hesitate to say this in a group of lawyers, but dont lawyers have responsibility to zealously advocate on behalf of their clients . Thats what we teach. Within the bounds of the law. That the people are doing. I dont know theyre evil because we havent been publicly prosecuted. So its an interesting question. However its not laptop essays. My hypothesis is people are doing their job in management was acting what they perceive to be the interest of shareholders, the fiduciary duty after all. Thats exactly what you can lead to huge disasters. People doing their jobs and thinking of risks in a certain way. Thats a problem. I dont think it is their job. What to do in their job due for the shareholder value of washington mutual, waconia . Little of any one of the biggest banks which are treating a very small fractions of their book value. Everyone of the boards of directors at one of those big banks and every one of the ceos, including some incumbents are not doing their jobs, nor were there regulators. I agree. I called for mr. Pander to step down two years ago. I read in sheila berry spoke as she felt in october 2008, the stock prices down 9092 during the tenure in that job. Where are the board of directors today . The best we do but it is to break up the banks. Again, this is what the Bank Investor is saying. Make them more efficient and get a better shareholder in return. If you want an issue to respond a larger scale, in this town they have to be some longterm economic plan of how were going to manage the debt of the next 10 years. If we dont convey that to the market, were setting ourselves up again. I will conclude by saying that someone was talking about the issue of why the u. S. Dollar was the strongest currency in why the treasury is the most sought after global currency. Experts said you have to realize that the u. S. May simply be the most attractive in the booth that jury. I think we should try our best to get out of the glue factory. You should be the resolution for the new year. Please join me in thanking the panel for a wonderful conversation. [applause] now, you look at speeches in the European Parliament and baking regulation. The Nobel Peace Prize in uks role in the e. U. The president s of the European Commission and European Council addressed members on tuesday of the day for banking supervision and a proposed european Banking Union. This is about an hour. [speaking in native tongue] transcode the statements by the European Council and Commission Concerning the European Council held on the 18th and 19th about over. And on this now, with words of welcome, i give the floor to the president of the European Council, mr. Herman van rompuy. Mr. President , dear colleagues, after a brief but heartfelt noble prize to the European Union, which was held by attribute to redouble efforts for the future, to focus of which the European Council was on the economic issues. So the compact on growth and job an interim report and Monetary Union. We also spent time on some Foreign Policy questions and touched on a matter, which i know is not the appointment on the board of the European Central bank, which was raised by a man by your president at the beginning of the meeting. The unions commitment to promote the equality of women and men is an objective they done in the treaty. Yesterdays to buy your Economic Committee on the appointment is an understandable expression of concern that a great deal remains to be achieved. Notably regarding the European Central bank. I note also the committees recognition that the candidates consequences are in no way disputes here for my part, last weeks European Council, i made a strong appeal to all heads of state of government identified and oppose female candidates at european level. The economic and financial sectors, with the other representation of women is placed. I underlined that we need to be active in encouraging this process. I hope that this such renewed commitment to gender balance, parliament would base its position on the current candidate on the sole criteria of professional qualification and experience. It is urgent to fill the figure. Dear colleagues, now let me move to the economic questions, which were at the core of our discussions. First, growth in jobs. We are still suffering from a lack of growth. 25 Million People around employed in the union, especially among young people. The overall growth projections for next year our best models. I am aware of the told this is ticking on our societies. In several countries, the adjustment is more severe than lengthy that many had object to. And budgetary deficits and competitiveness would have been necessary but even without the crisis in the euro zone. It is therefore all the more necessary to share the burden of this adjustment fairly and to have policies especially targeted at reducing unemployment. And here come in the e. U. Instruments should assist us. Creating jobs and boosting socially inclusive growth remains our utmost priority in ultimate goal. The commitments made under the compact for growth and jobs cannot wait. They must be followed by Decisive Action and translated into concrete results. Its particularly urgent for the implementation of the 120 billion package we agreed in june for progress on the Senior Market issues and on our e. U. 2020 goals. It is also urgent for supporting social inclusion, developments, developing competitiveness of our industries and harnessing the potential of international trade. In the meanwhile, we will discuss the november the most annual Financial Framework at the European Council. We need to grow the e. U. Budget although it represents only 1 of european gdp as an investment budget is a huge impact on growth. Of course, restoring confidence in the year is out as a key part of bringing back internal demand and growth. Unless we can now witness the first results of our cumulative actions. I may give a few examples. The socalled spreads are decreasing significantly, in almost all euro zone countries. Public deficits are lower in most countries. Competitiveness and expert performance are stronger in all countries. Upcoming commenting supervisor is a major breakthrough we launched two weeks ago the mechanism for the firewall now amounts to 700 euro. In this specific case of greece, significant progress has been made. The euro zone has a state issued a statement welcoming the determination of the greek government to deliver on its commitments and also commending the remarkable efforts of the greek people. The root group will examine this progress in the light of the forthcoming report can take any necessary decisions. Honorable members, our second major debate was on the interim report, which i drew up in collaboration with the presence of the European Commission, the euro group in the European Central bank group of four president s who also met with your president. My office has Member States of the European Pa