Steve Syre talks Bank Regs

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Welcome back top -- and a warrant to hold on here. -- KO studio gonna be good weekend little chilly. Good NFL football coming up all sorts of things by the way speaking of good things we -- to do the Boston business report with the Boston Globe Steve sire. Every day here on WRKO so we welcome Steve's site is Steve good bought rerun the old warrants on the morning.

Good morning guys really do I gotta I gotta tell you I love the caller a few minutes ago was talking about getting all the political ads except in principle -- the newspaper recover yeah.

We thought thank you and I could ask -- his last name was scion that was. Does I think I wanna see that the call came in it was from the same number that you're calling -- Up. AIG and who we redid the globe that our president. Is proposing some new -- some very aggressive restrictions. On the big banks and it seems to indicate a big change in tone what's going on behind the scene -- Steve.

They're the big change in tone going on if you go back to last week when the Obama was out. Banging on the big banks and saying that the wanna -- B which is really attacks. Do purportedly. Get back any money that we lost in this car program and now -- into this week where he's come out with. I do plan which would. Prohibit banks who get deposit insurance essentially. From participating in riskier activities in these include things like. Owning hedge funds are private equity firms. That have -- definition. Riskier investment objectives and something called proprietary trading which means. That they buy and sell securities just for their own interest not for the sake of some sort of service to a client that they're just in the -- trading to make money for their own interest that these are riskier more speculative. Activities and they don't want. Organizations banks that get. Deposit insurance and essentially. Taxpayer backing in this I can't to a big to fail Europe. It would we -- a -- to say you can't do that this is the return of Paul -- more than anything else.

Steve it's no secret that the president of struggling. To get his footing politically and he's lost an awful lot in terms of public except in popularity. Is -- proposals in your mind are these legitimate. Regulatory proposals are there are a lot of politics. -- being played by the Obama administration.

That is -- out of -- I think that there aren't there is a some parts of this are are legitimate but that's politics is driving the box right now. Clearly Obama needs something to as many people have written dip buying took up place where he can appear. To be more populist and more in June -- who is popular sentiment and I think it feels that if he pushes against the banks. He has made a good book he meant to begin -- and hey opponent that is more difficult. Four Republicans still break on the other side and so I think that's the fundamental thing but when you look at. What's actually going is it. Is such a bad idea to to carve out. -- more speculative investing ideas from. Government backed banks. You know this really wasn't something that caused our crisis but. I can't say that it's necessarily -- bad or counterproductive. IDS the idea of limiting the size of giant banks that are. Now defined literally has too big to fail of the government has stepped in and it is something generally that I approve. But as you look and say well you know what caused all our problems I think. -- you have to say that there are two things that took place with one is that -- regulators and government in general. Who's in the ninety's and into this didn't -- further into this decade. You know we're. Hopefully didn't enforce. Or pay close attention and employ the rules and regulations that they already have in place. And secondly that there became this whole shadow banking system of investment banking. Financing mortgage company and that's sold securities -- God knows who around the world and let it get completely out of control these are the things that we're most damaging to lead us.

Steve we see and input you talk about a politician or go is the battle between Wall Street. In the main street -- two that the president wants us all to believe that he -- on the side of main street against Wall Street and and and taken on the big banks here. The question I have is I look at the globe and I -- guy derisive Barney Frank I see Paul Volcker I see the president. I don't see -- in the pitcher here any Republicans is there any notion that there's going to be some bipartisan support on this. Because at the end of the day as I looked down -- DC I think that's what the president needs to move some of his agenda forward.

Well I don't think that's good to appoint at the moment is to. It'd be bipartisan way I think the point is to position. The president in what they feel is. From a populist perspective the right place that's what's going on right look at themselves and you can recruit Republicans. You know there are a number of Republicans in the past like John McCain that has supported ideas like this whether or not. They all line up on the other side I don't know whether Obama does something or is it buried this substantive things in terms of compromise to. Attract Republicans I don't know either but I'm not sure that's the point at the moment I think it's. The point is to rebrand the president and his politics and what happens from here is. It is something else could you point out who was on the stage with the president. You know awhile ago you know Tim Geithner Larry Summers -- guys -- really. Driving the agenda our financial stop and I think many people view them as being too -- to Wall Street in general and the financial establishment overall and that. About more than anything else particularly the Larry Summers of the world the word is sort of too closely associated with the problem to begin with. Then you have somebody like Paul -- very famous former. Federal Reserve Chairman who is kind of a -- margin and you know was talking about things like best it was completely on the outside looking the end just six months ago and it was sort of alienated. And now he's the guy. Whose ideas are front and center and people like Geithner and Summers have to play along.

There we go well Steve Cyrus warranted to be continued to -- can interesting drama play out down there we appreciate as always you around story from. Behind the scenes the story behind the story you go and have a good weekend Steve's site look at John Monday. What are we gonna go to the news and then. But coach hottest story. BCI just gonna be a great topic for the next hour.

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