What Are the Seven Sins of Wall Street?

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March 13 (Bloomberg) -- Bloomberg’s Bob Ivry discusses his book, “The Seven Sins Of Wall Street” on Bloomberg Television's “Market Makers.” (Source: Bloomberg)

What are they?

I had to cut it off at seven because there needs to be something for the sequel.

Got it.

Or volume two.

"to my publisher next year.

What are they?

You're putting me on the spot.

You brought them up, sell it.

Let's start with lust.

These are the seven sins.

These have been around for a long time.

Basically, it is pride.

That is the big one.

Without excessive pride, all of the other sins are less likely to happen.

If you believe you are a master of the universe and believe all of your success is due to your genius and the government should do whatever you tell them to do and the customers should take second fiddle to your desires and you can trade against your customers, then everything else kind of falls into place.

Industries, institutions, only become these mammoth beast when their environment lets them.

They only become divas when they are serviced.


That is why the subtitle is "washington lackeys." the quattro biggest depository banks are 50% bigger than they were in 2007. that is a crucial point to make.

In your book and right here right now, what you're saying is, you're not putting ourselves in the elizabeth warren camp or the numerosity cap, or champion for regulation.

You're saying the whole system is bad and needs to be rethought.

What have the regulators done in the last eight years that has inspired her confidence?

Not that much.

Let's be honest about who the regulators are, who has those jobs, and how they're compensated.

We're talking about complex financial instruments.

The people are trafficked them.

The people who get paid millions of dollars a year.

We are expecting someone who lives in a claim, virginia who gets paid $95,000 a year to figure out how to rein in and regulate these people?

I will go one step further and say that guy that makes $23 million a year that is sitting on the top of the organizational chart doesn't know what is going on in his own organization and cannot police it properly.

Then who knows?


These banks are too big.

Nobody knows what goes on in them.

If dodd-frank and other regulatory action doesn't fix the problem, how do you fix it?

My idea is, your institute some form of glass-steagall or you have a bank -- you sound like elizabeth warren.


If you make the bank small enough, it can do within reason whatever it wants and its failure on impact anybody but the shareholders and the employees and the taxpayers don't have to worry about it.

It is a glass-steagall that would prevent things from getting too large.

While it was in place, there were some very large banks that did not do investment banking -- but nobody rushed cap week in meetings at the fed to save capitalism.

When con illinois went down, it was a big deal, but it wasn't like them bernanke and timothy geithner got all of the chieftains of wall street together -- hang on.

They are as smart as you can get.

To the people who are in these regulatory bodies actually understand what smart regulation is and how to implement it?

Do we have evidence they do?

I don't necessarily know.

I don't necessarily know what smart regulation is.

When you get these organizations are so mammoth, when their own bosses don't know what is going on, how can we expect the regulators to?

Lehman brothers.

You go girl.

Lehman brothers by definition wasn't too big to fail.

He said, you go, girl, tea.

I heard him.

This kind of thing happens every day.

Lehman brothers wasn't too big to fail, wasn't saved, but nearly brought down the financial system.

It wasn't a commercial bank dabbling in security underwriting.

How does that fit in?

That was the last financial crisis.

But what is to stop another lehman brothers?

Not so big as bank of america or citigroup -- lehman brothers was not gambling -- yes, yes, in another self, enough to threaten the money market industry and jaw must bring the financial system to its knees because of the interrelationship.


It was a nontransparent financial institution that was huge and too big.

Now you have an transparent financial institutions that are even bigger and take deposits from customers like our friends come as civilians out on the streets.

I do think inside these organizations, i think those who are the violators don't realize it.

Take the london whale.

Do you actually think he believed he was going to be putting the bank at the kind of risk he did?


he was doing well in his traits.

People liked it.

They said to double down and he did.

He did not realize the ramification of the kind of trades he was putting on.

I think bob is right.

I'm not saying bob is wrong.

I'm just asking, where do you draw the line?

That is the challenge.

If this becomes a regulatory issue, then we go back to trusting people in congress and trusting the regulators to figure out where to draw the boundaries.

One last time.

That doesn't inspire a great deal of confidence.

Let's put it on its head.

Bring it.

I'm more concerned about what to big to fail has done to our democracy and what it is really done to morality, which is not a word you hear on market makers that often.

These banks -- because we are immoral?

We don't have morality.

Is that what you mean?

Tom keene -- he is the reverend.


But i can't. when was this a comedy show?

Every day.

You have institutions that are above the law.

They are above the law.

The attorney general of the united states said that to congress.

He said, these organizations are too big to jail, too big to prosecute.

To me, that is -- are they weren't when they were doing so well.

Everybody loved them.

Remember how people felt about jamie dimon four years ago?

But what about now?

May be worn buffet is too big, because we love him.

He is not trying to rig the electricity market in california.

He is not being cited for money laundering for iran.

That we did not feel that about the banks five years ago.

After a crisis we can say, look at all of these horrible things.

If something happened that at berkshire hathaway, you might be writing a book in for your saying, warren buffett, he is just to damn big.

The point is to figure out what went wrong.

What is still going wrong.

Which is what my book is about.

It is not after the crisis.

And i thought it was about lust.

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


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