Is the Government Over Regulating?

" In the house financial services committee is holding hearings this week on the administration's financial regulatory reform proposals. -- several financial planning consumer protection and state regulatory groups sent letters to house leaders expressing concern. About one suggested reform. That the Securities and Exchange Commission be granted authority to acquired fiduciary duty for any broker dealer or investment adviser who gives investment life. Legislation would also apparently SEC to examine and -- hand forms of compensation. That encourage financial experts to -- investors. Into products that may not be. And your best interest is is all part of the tangled web of mean regulation. Turning now to debate the merits or lack era. Jonathan Hoenig managing director of capitalist pig it's fun and merits not on there I Gary Coleman -- of the federal office director. At US target date of rehashing the formal white house Press Secretary and Fox News contributor good morning on you guys you diamonds are you laughing Dana because some I think I know where he feels about regulation."

" But let me know how do you tell the audience. I'm registered -- feel about that."

" John how well Alexis I. I am sorry I tell -- out if the free market didn't cause the crisis and how this proposed regulation. Won't prevent another one from occurring we all these troubled firm you've been talking about for weeks now AIG while I'm new Freddie Fannie Mae off. These were all highly regulated firms and if you really want to look to the cause look to the government in a -- involvement in the marketplace it's billion manipulating interest rates a subsidized housing markets to -- reinvestment act. That's where the government should be focusing not on regulating private productive business but -- the regulations that have already gone a strong all right but. You know the premise now the administration essentially that business is full of productive idiots who are self destructive. And that regulators know the right way to structure everything from mortgage rates. To interest rates how loans are made and how investments are made it won't work. Gary how do you feel about what -- I had to --"

" Well I think over the last 25 years we've seen is a hustler stepping back. Regulatory framework and so."

" We're calling for is not what we would consider over regulation but basic common sense proposals increased transparency making sure that."

" The risk in the market is reasonable. Warren Buffett famously said."

" That -- markets are great but they're prone to -- we're just trying to make sure there's some reasonable checks."

" On the access. Tina well I've always wanted to meet Jonathan's and out of step closer feel better about -- how. And I think -- to make a convincing case. I mean it's not the businesses don't think that there should be some sort of regulation but. Washington has a tendency to over react in a crisis. And that's what you're seeing now and they're trying to pull off any low hanging fruit. And I think that we should listen to people like Jonathan and other people in business. Because people who are making decisions in Washington really haven't run businesses and that's a serious problem that we have -- GAAP. And I would go back to something that the other -- which is that. And then there's been this 25 years of walking back from regulation I don't think that there are many business people would actually agree. You know it's interesting Gary because war debt word we're discussing right now particularly with the Federal Reserve Bank. Is actually giving them more power not less power. And yet a lot of people believe that the power they already have they have not used appropriately. So are we walking into perhaps very dangerous territory. By giving them what already seems like ending -- manpower."

" Well it take a look at it you know we talk about these things in generalizations but if you take some specific examples take for example the credit card."

" Reform bill that just passed. Many of the banks said that that was a very onerous bill. I was gonna stop profits credit card companies were going to you know go under -- not be able to do their money it make their profits."

" what we're talking about these things such as. Credit card companies changing -- due dates on your bills so that you would be forced to pay fees because he would Haley when you didn't know it."

" Things like that there are literally skimming consumers that don't know whether -- of them don't know that the rules are being changed so. Hate to say that we don't have some basic consumer protections in place I think is wrong I think the other thing that we're looking at on some of these larger issues."

" Is also that we need to make sure they were protecting taxpayers we've seen -- well liked what is happening the last few months last year."

" Where there's excessive bail out. Institutions that we deemed too big to fail. That you -- thing here is that Adaptec have a prayer."

" Acting but yet how about protecting business and then I mean our business -- on your long list of of people you want to protect. Because -- what regulation really does is punish not criminals but innocent businessman. Just like Dana and I hate to say it in -- sarbanes Oxley which of course is enacted under your former Boston -- or president. Is an enormous burden continues to be an enormous burden. I'm small businessman just the ones who were trying to provide jobs and and grow the economy so. This notion that somehow the economy will grow there won't be anywhere financial realities if just we just get the right regulation."

" It is sparks yeah I think John McCain in fairness. This is stem cell they -- His got to be some culpability which he'd come through one of the largest financial crisis in US history and say we're not going to do anything about it. I mean investors. Dot com one word in this -- it in what happened over the back I mean look at money market accounts. -- really money market accounts they aren't investing in the horrible sub prime related mortgages. And we got to do something about the awareness to legal."

" You know -- to be the ones that were given you know credit hi credit ratings by the monopoly of the credit rating agencies an asset if by the government. Are those and I mean you know it's it's suggest again that the market with some freewheeling you know free enterprise that -- fellow. Part. Is just not true the markets the financial markets have been highly regulated for four decades and of course the more the government is not -- control them the more erratic and volatile that the."