who co-chaired last night's committee and the whole marathon session and i hope you have gotten a little bit of sleep. mr. chairman, thanks for joining us.
i did get a few hours, andrea, thank you for your concern.
well, it's called sisterly. give me a break here, barney. but in any case, let's talk about why bank stocks are up. if you have come out with the toughest
in generations, why are bank stocks rallying today?
well, one, because uncertainty is a big problem. as
who analyzes the market, expectations are built in. and very often reactions to events come before the events happen. i think you had some people in the
who underestimated the thoughtfulness with which we could approach this. secondly, many people in the
recognize that good rules are in everybody's interest. in the absence of rules, people are forces by competitive pressures to do things they don't want to do. a number of bank officials and financial officials in general have said that. so, having a good set of rules that allow them to function, i think people are encouraged by that. so, i would say those are the major factors. they do benefit from certainty. the notion that there would be continued uncertainty about the rules but which they conduct their businesses for many months for which some people have participated in and having knowledge of what is going to happen and being able to go forward is a positive.
now, you're the man who got
to back down somewhat on derivatives. is this the right mix of
yes. what i mostly work with modifying is not the part about moving the derivatives out of the banks, it was a second part of that and i know it didn't always get attention. part of the amendment would have applied a
to people to the customers. now, we did insist in, one, having a
to people who give investment advice to individuals and sell to individuals in retail, but we heard from all the
and many, many
and others that they wanted to be free to deal with people without have the other side having a fiduciary responsibility without dealing with it. we did get significant improvements and instead a
code of conduct
that is not a few fiduciary conduct and that was the major change made. again, here's the way this works. important reform ideas are floated. the initial response to the media, frankly s to be very kepticakept ic skeptical. we have in virtually every case whether it was the notion of a consumer agency,
on the volcker rule and senator lincoln on derivatives and our own efforts to stop bad subprime loans and to restrict the ability to make loans and every one of those ideas which people told me over a year ago would never happen has now happened. they have not happened 100% and in some cases 88% and in some cases 84% and in some cases close to 100. tends to focus on the 6%, 7%, 8% that didn't happen rather than the overwhelming number that didn't. i wish people would go back and look at these predictions and they were wrong in saying that the
thing was never going to go anywhere. yes, there were modifications but in every case the these will not be b come law.
do you think this will now having been blessed and sailing through final passage or could there be some problems on the senate side where things are never predictable?
they won't sail through, but i think we can go through with a lot of people. senator dodd who did a great job and who is, frankly, has been unfairly criticized in ways that i regretted, but he has constantly had in mind and i had to work with him the need to get 60 votes and that's why some people are saying why did you do this, why did you do that because we need to get 60 votes. there are people out there who, as i've said and one in particular i have said, they can sit there and talk about oh, wouldn't have have been perfect, wouldn't that have been perfect. i have to make sure that we have a majority in the house, that's easier, but it's not nothing. senator dodd and i have worked together and have made some compromises in this bill. don't achieve as much good as we might have liked, but in every case achieve some good.
, i'm not going to be carping at you, congratulations, you have been up all night and produced something and you have worked very hard at it.