President Trump, DOE, Congress discussed on Bloomberg Daybreak: Asia

Automatic TRANSCRIPT

The notion that may be congress and the president should not be too aggressive in trying to unwind some of the regulatory structures that have been put in place semi what do you think we can expect right now there had seemed to be some positive momentum word where regulation reform had been going are we don't know where that is right now but the mean whether or not it's a tweet to the volcker rule whether we're talking about banks holding less capital how does this play out over the next let's say six months two year it could play out so look positively dokan and here's why is it's basically two treasuries put out this report a couple of months ago outlining regulatory reforms some technicality in terms of regulatory requirement but by holding treasuries for example they make it actually even easier to to use leverage and it to use treasuries to leverage to balance sheets that's regularly that's regulation at a little volcker rule which will restrict us at a treasury can issue out legislation make that make that happen dabbled expense the the leverage capacity of banks balance sheet and that can be positive and it must receive very positive at markets now the other point is that the stress tests as we talked about earlier was know is a discussion about like today need to be debt stringent in can they relaxed things dare of course it's very easy to do it as we had a fed of course comes in eichner we will maintain these stress tests rigorous because we need to maintain a tight control of financial stability but at the same time if regulatory capital that these banks a holding is actually higher there was really they should be holdings for the single too much capital which is what the administration views on this point is about to which capital they can do more with a capital that probably will be some relaxation in the stretch to of allowing these banks to deploy some of their capital i would caution doe does the volcker rule self will not be that easily tone wound because that's old when all through congress in two thousand ten eleven as the.

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