Making Sense of a New Era of Financial Regulation

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Nov. 12 (Bloomberg) -- Judd Gregg, CEO at Securities Industry & Financial Markets Association, discusses the state of financial regulation in the United States and what he expects from Janet Yellen as Fed Chairman. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Is when do these fines get paid.

When do we get this regulatory excess behind us so we can move on and do business.

Why can't jamie dimon lean over and go "pay to the order of the u.s." the people work on main street through their pension plans, he has a responsibility to protect shareholders.

If they did something wrong and they need to settle the issues of how something -- and get it right through finding, then yes.

But make it a reasonable fine that does not put pressure on the shareholders.

What jpmorgan is being fined for his actions it took when it took over companies which it was asked to take over.

Why have may push back?

-- why haven't they pushed back?

It is very hard in this climate.

You have got this excess.

Speaking of climate, "the new yorker" had a profile on mary jo white.

Let's take a look.

The financial industry is trying to shape dodd frank.

Is this what you see?

No.

i don't think that is happening at all.

I do think mary jo white is very good.

She will be excellent at the sec.

Her background as a prosecutor it's a prosecutor it's very strong.

She has got people around her.

Is she making life miserable for your lobby group?

She is trying to do her job, as the sec is.

We are engaged in working with regulatory agencies to reach constructive regulation that addresses the issues.

We do not want too big to fail.

We do not want taxpayers at risk.

Isn't she addressing yesterday's issues and less about tomorrow?

She is looking for it.

There are some other regulars getting caught up in yesterday.

These fines from the doj are about things that happened five years ago as a result of tarp in the financial meltdown.

It would be nice to look forward.

In leslie get our economy going again with some steam, we are not going to get prosperity.

The essence -- main street is the engine of prosperity.

The field for that engine come from the capital markets.

That is where people take risk.

We think of images.

The image was not judd gregg screaming.

That would be senator shelby.

The banks came to the rescue at that time.

Why should they come to the rescue the next time, given what has happened?

Hopefully there will not be a next time.

Oh, stop.

But there will be a different structure and it will be a long way out, another bubble.

I don't think it will be a financial -- where will the banks be to salvage bear stearns?

Where will the fed be?

Those are legitimate questions.

The psyche of this has been -- has affected banks.

If hank paulson came forward and said to the top 10 banks, you must take the money.

Some of them had to take it.

Some of them did not have to, they were solvent.

But they took it because he said it was in the natural -- the national interest.

Could he do that today?

I am not sure.

A lot of those banks who are solvent will say we saw what happened.

I remember the sweat in this building.

I remember the sweat, one guy said, yes, jamie dimon to th e rescue.

What is the fine?

$4 billion.

That is true.

It is ironic.

There was obviously a business plan.

He thought it was good for the bank.

He also did it -- jpmorgan did it, trying to be helpful in a time of crisis.

People don't appreciate how close we were to the brink of a meltdown, that would have affected main street and the world in a dramatic way.

Folks stepped up and did things they would not have done in a business climate, they did it for the country.

D.c. banks stepping up now -- do you see banks do not now?

-- do you see banks stepping up now?

They are still committed to the american dream.

We are about to get another regulator.

Janet yellen, chairwoman alongside dan tarullo.

What about her record?

I helped her when i was in the senate.

I try to be supportive of her on our side of the aisle.

I like janet yellen, i think she'll be a good fed chairman.

She is soft money -- the fed chairman is going to have to be pragmatic.

They're not going to have a choice.

They cannot be soft money, hard money, they will have to get a couple trillion dollars out of the system in an orderly way that does not create disruption.

It will be very hard and require pragmatism.

She is the person for the job.

Your republican party needs to be pragmatic.

Can the governor of new jersey play in kentucky?

Absolutely.

We will have strong people contesting for the nomination, i assume chris christie will be one of them.

Some of them say he needs to climb that washington.

Are you coming out in support?

We have five or six people who are very strong.

Paul ryan, jeb bush -- can i bridge the divide in the party?

Yes, the party may have learned some lessons, you cannot go down that -- dead end streets.

You have to be committed to trying to govern.

The people want congress to govern, the president to govern, they want this country back on track.

That is optimistic, judd gregg.

Coming up on "bloomberg surveillance," see what companies are listing in the u.s. why our single best chart.

This is "bloomberg surveillance," streaming on your tablet, your phone, and bloomberg.com.

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

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