BNP Seems to Deserve the Punishment: Albertson

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July 1 (Bloomberg) -- Robert Albertson, principal and chief strategist at Sandler O’Neill, and Bloomberg’s Michael Regan discuss the aftermath of the guilty plea and record $8.9 billion fine paid by BNP Paribas for violating U.S. government sanctions. They speak on “Bloomberg Surveillance.”

What it means for their american operations.

It means what it means.

It is a modest restriction for a file, a narrow one, commodities only.

And the fine is presumably defendable based on the history of the action.

Maybe it is the first time regulators got in the act and said let's make these fines tied to something.

In that sense you sort of feel better that we are finally maybe at the top of this, chase the banks and punish them.

They seem to deserve the punishment.

What i take away from it, what bothers me most thomas is that the french authorities -- what bothers me most, is the french authorities wanted to defend them.

It tells me we have little international cooperation.

That kind of shocks me.

The finance minister himself said we have looked at this stuff and it is perfectly ok.

The word that comes up here is macro prudential regulation.

What is macro prudential, if you have internet seen work share?

What we are talking about here domestically is another look at dodd frank and coming up with observations and changes in both directions.

So i think the activist aggressive example would be governor trudeau who said we need to raise the thresholds of size and all that.

It sounds good.

We are making the regulatory burden -- overkill.

And then a month later he comes up with this new speech and i strongly recommend that you get a hold of the lipton letter that gets into this -- it says that banks and their boards, they have to care about customers, about investors.

They also have to care about the country, and macro policy, and they have to think about what they are doing and how it will affect that.

It is really going another layer out in terms of responsibility.

We all want to do the right thing for the country, but macro prudential in this case means whatever the fed is trying to do, whatever the politicians are trying to do.

Robert albertson will continue with us throughout the morning.

We also have mike reagan, a stocks editor from "bloomberg news." the angst over all the financial regulation does not seem to be affecting the stock market if you look at where the indexes are trading, but surely it is having some kind of sentiment-damping effect on investors.

Financials are one of the worst performers in the second quarter.

Really the second quarter is governed by energy companies.

When will investors know that it is all clear?

Is there something -- is there such a thing as cell in july and go away?

He puts on a flak jacket and a helmet.

You are down there and it is like a war zone, and the reality is it is a war zone.

How boring is it in the war zone right now?

I think it is 51 days without a move on the s&p 500 of more than 1%. that is almost 20 years, 1995, where we had a stretch of quiet for that long.

Everything is low.

Is your job in jeopardy?

All the traders at the big banks.

In your world -- rip it up.

Robert albertson, will there be trading debts on wall street?

There already have been.

The other big change in regulation is the re-focus on trading levels, and it has gone way past high-frequency trading.

Not all of it is bad.

It is not all bad.

Robert albertson is here.

He does not want to talk to michael.

He will talk to michael reagan.

We will be talking about mark fields, taking the reins today as the new head of ford.

This is bloomberg "surveillance ," on bloomberg television, also stream on your tablet, your

This text has been automatically generated. It may not be 100% accurate.

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