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00:00OVERHAUL OF BANKING REGULATIONS AGAINST SMALLER BANKS RELEASED FROM RULES. ALTHOUGH THEY DID NOT GET AS MUCH AS THEY WANTED. GLOBAL NEWS 24 HOURS A DAY, POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN MORE THAN 120 COUNTRIES. I ' M KAILEY LEINZ. THIS IS BLOOMBERG. DAVID, MORE ON DODD-FRANK? DAVID: THINK YOU SO MUCH. KEVIN -- THANK YOU SO MUCH. KEVIN IS LIVE WITH JEB HENSARLING. KEVIN: THE MAN OF THE HOUR. BIG REFORM BILL YESTERDAY, FIXED IT, WHATEVER YOU WANT TO CALL IT. WHAT DOES IT MEAN FOR COMMUNITY BANKS AS THEY PLAN FOR THE REGULATORY STRUCTURE IN THE YEAR AHEAD? > > IT MEANS REVELATORY MEETINGS WILL STOP. WE HAVE BEEN LOSING A COMMUNITY BANK FOR A CREDIT UNION EVERY DAY SINCE DODD-FRANK WAS PASSED. IRONICALLY, SINCE IT WAS PASSED, THE BIG BANKS GOT BIGGER AND THE TAXPAYER GOT POORER. NOW, FINALLY UNDER PRESIDENT TRUMP ' S LEADERSHIP, THIS IS GOING TO CHANGE. I WISH IN THE BILL WAS BIGGER AND BOLDER, BUT IT IS TO DO WITH THE PRESIDENT SAID, IT IS DOING A NUMBER ON DODD-FRANK. TO SOME EXTENT, THE BIG DEBATE HAS NOT BEEN REGULATION AND DEREGULATION, IT IS SMART REGULATION AND DUMB REGULATION. KEVIN: HOW MANY DEMOCRATS SUPPORTED IT? > > WE HAD A GOOD NUMBER IN THE HOUSE. THEY HAD ALMOST TWO THIRDS OF THE SENATE TO SUPPORT THE SENATE PACKAGE BILLS. AND I AM HAPPY TO SAY, MODESTLY, THAT OVER HALF OF THE BILLS STARTED IN THE SENATE AND TWO THIRDS OF THE REGULATORY BILLS THAT PUSHED BACK ON THE BUREAUCRACY CAME FROM THE HOUSE. IT IS A PROGROWTH BILL. NUMBER ONE, FORTUNATELY WE NOW HAVE A 3% GROWTH TAX POLICY. WE NEED A 3% REGULATORY POLICY, ESPECIALLY WITH BANKING AND CAPITAL MARKETS. THIS IS THE BANKING PORTION. YOU DID PASS WITH A STRONG BIPARTISAN VOTE. WE EXPECT TO HAVE A ON THE PRESIDENT ' S DESK. THIS MEANS THAT PEOPLE THROUGHOUT AMERICA WILL HAVE BETTER OPTIONS TO BUY HOMES, BUY CARS AND PUT FOOD ON THE TABLE. KEVIN: COULD THERE BE ANOTHER PACKAGE BEFORE THE MIDTERMS, OR IS THAT NOT REALISTIC? > > IT IS VERY REALISTIC. I AM NOT READY TO SIGN A BLOOD OATH IT WILL HAPPEN, BUT WE HAVE A GUARANTEE FROM THE SENATE THAT THEY WILL VOTE ON A PACKAGE OF BILLS THAT WE HAVE WORKED ON, THAT IS ABOUT CAPITAL FORMATION. S-2155 IS MAINLY A REGULATORY RELIEF BILL FOR BANKS. WHAT WE DO NOT HAVE, AS YOU KNOW IN AMERICA 80% OF CORPORATE DEBT COMES FROM CAPITAL MARKETS, NOT FROM BANKS, SO WE HAVE A DIFFERENT SYSTEM FROM MUCH OF THE OTHER INDUSTRIALIZED WORLD. WE HAVE HAD IN THE PAST SOMETHING CALLED A JOBS SERIES OF BILLS TO JUMPSTART THE BUSINESS STARTUPS. THE FIRST SERIES OF BILLS WERE SIGNED INTO LAW BY PRESIDENT OBAMA. SO THIS IS ALL GEARED TOWARD VENTURE CAPITAL, TO STARTUPS, INVESTORS, STRONG M & A BROKERS. WE HAVE A PACKAGE LIKE THIS IN THE HOUSE AND MANY HAVE PASSED BY OVER TWO THIRDS MARGIN. I AM TRYING TO WORK WITH MY COUNTERPARTS TO SAY, WE HAVE BEEN THINKING PIECE DONE, BUT WE DO NOT THE CAPITAL MARKETS PIECE. THAT IS COMING NEXT. SEVEN: -- KEVIN: THERE WAS A BIPARTISAN AMENDMENT FROM CHRIS VAN HOLLEN, FROM MARYLAND, THAT WOULD MAKE A MORE DIFFICULT FOR THE PRESIDENT TO LIFT TRADE RESTRICTIONS. I DID NOTICE IN THE HOUSE YESTERDAY -- DO YOU HAVE CONCERNS ABOUT THE PRESIDENT ' S PROPOSAL TO LIFT A TRADE RESTRICTIONS? > > ONE, I RESERVE THE RIGHT TO SEE THE DETAILS OF WHAT THE PRESIDENT IS GOING TO END UP PROPOSING. I WANT TO SEE WHAT THE PRESIDENT IS PROPOSING. WHEN SANCTIONS ARE ANNOUNCED, WE WANT THEM TO BE IMPOSED. BUT THE PRESIDENT IS OUR CHIEF NEGOTIATOR, AND UNDERSTAND THIS IN THE CONTEXT OF OUR GREATER TRADING RELATIONSHIP WITH CHINA, AND OBVIOUSLY IT IS IN THE CONTEXT OF THE SECURITY AND PEACE ON THE KOREAN PENINSULA, BUT IF WE ARE GOING TO HAVE STATIONS, THEY SHOULD BE IMPOSED. SO I AM LOOKING FOR THAT EXPLANATION OF EXACTLY WHAT THE ADMINISTRATION HAS IN MIND AND MANY OF US ARE CONCERNED. BUT I WANT TO HAVE THE ADMINISTRATION UNVEILED THE ENTIRETY OF THE PACKAGE AND HEAR THEIR SIDE OF THE STORY. I DO NOT WANT TO JUMP THE GUN. KEVIN: IN TERMS OF WHAT WE ' RE SEEING IN THE MARKET WITH REGARDS TO THE BACK AND FORTH WITH CHINA, OBVIOUSLY THE DEVELOPMENT OF WHETHER OR NOT THE JUNE 12 SUMMIT IS GOING TO HAPPEN WITH NORTH KOREA LEADER KIM JONG-UN, WHAT DO YOU MAKE OF THAT, AS ALL OF THIS CONTINUES TO BE SO QUICKLY EVOLVING? > > I AM CONCERNED. TRADE IS IMPORTANT TO AMERICA AND I GIVE THE PRESIDENT CREDIT FOR HIS TAX POLICY. THEY PERCENT GROWTH TAX POLICY -- A THEY PERCENT GROWTH TAX POLICY. HE IS ON TRACK TO GIVE US THE BEST REGULAR TOUR POLICY SINCE RONALD REAGAN, BUT WE WILL LOSE IT ALL IF WE END UP IN A GLOBAL TRADE WAR. I HOPE THE PRESIDENT ' S NEGOTIATION STRATEGY PROVES BRILLIANT ON A BILATERAL BASIS AND WE END UP WITH BETTER TRADE DEALS. AT THE INNER THE DAY, TRADE IS -- BUT AT THE END OF THE DAY COME A TRADE IS IMPORTANT. I WAS A PREFACE WITH LARRY KUDLOW WITH A BUNCH OF MEMBERS OF CONGRESS, AND EVERY SINGLE ONE OF THEM, INCLUDING MYSELF, TALKED TO LARRY ABOUT OUR ALUMINUM PRODUCERS ARE USERS, USERS IN OUR DISTRICT THAT TAKE THE IMPORTS, IN MY CASE TURN THEM INTO SHELVING OR BUILDINGS, AND THEY WOULD BE HURT BY THE STEEL TARIFFS. WE SAID, SHARE THIS STORY WITH THE PRESIDENT. IT IS ABOUT AMERICAN JOBS. FRANKLY, IT IS ABOUT AMERICAN CONSUMERS AS WELL. KEVIN: DO YOU THINK HE WILL ULTIMATELY LIFTED THE RESTRICTIONS AGAINST CHINA, ARE YOU ADVOCATING HE LIFTED THE RESTRICTIONS ON THISE IMPORTS? > > I WANT TO MAKE SURE WE ARE FOCUSED ON THOSE WHO HAVE NOT LIVED BY THE RULES OF THE TWO WTO. THOSE WHO ARE TAKING OUR INTELLECTUAL PROPERTY AND TECHNOLOGY. SO IF THERE WAS A NATIONSTATE THAT WAS DESERVING OF SOME KIND BOTH NEW ARRANGEMENT, IT IS CERTAINLY CHINA, BUT I WANT TO MAKE SURE THAT AMERICA IS NOT HURT, THAT WE DO NOT CUT OFF OUR NOSE DESPITE HER FACE. WE HAVE TO ENSURE THAT THIS INVOLUNTARY TRANSFER OF INTELLECTUAL PROPERTY AND TECHNOLOGY STOPS, THAT IS WRONG AND THE PRESIDENT IS LEADING ON THAT. KEVIN: IN THE MINUTE WE HAVE LEFT, TALK ABOUT THE FARM BILL AND REPUBLICAN POCKETS AND WHETHER IT SHOULD BE TIED TO IMMIGRATION. WHERE IS THE STATUS OF THAT THIS MORNING? [LAUGHTER] IT IS MOVING FAST. > > AS ONE WHO GREW UP WORKING ON A FARM, I DO NOT BELIEVE IN THE FARM PROGRAM. I DO NOT LIKE IT AND I NEVER HAVE LIKED IT. OTHERS AGREE WITH IT. I THINK THAT WE LOSE OUR MORAL AUTHORITY TO DEAL WITH OTHER FORMS OF WELFARE WITH PEOPLE MAKING SIX-FIGURE INCOMES GETTING IT. I DO NOT WANT THE FARM BILL TIED TO THE WELFARE REFORM THE HELP OF PEOPLE OFF OF POVERTY INTO WORK, MUCH LESS DO I SEE ANY TIME NECESSARILY TO IMMIGRATION, WHICH IS ANOTHER BIG ISSUE THAT WE HAVE TO TANGLE WITH. I THINK THE QUOTE FROM MARK TWAIN IS, " I AM GRATEFUL I CAN SAY, I DO NOT KNOW THE ANSWER TO THE QUESTION. " KEVIN: QUOTING MARK TWAIN THE DAY AFTER THE DODD FRANK BILL. WE APPRECIATE THE TIME. DAVID: YOU SOMETIMES REMIND ME OF MARK TWAIN, ACTUALLY. KEVIN: HUGE COMPLEMENT. DAVID: THANK YOU SO MUCH.

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Rep. Hensarling Says More Deregulation by Midterms Is 'Very Realistic'

Financial Services Committee Chairman, Rep. Jeb Hensarling (R), discusses the rollback of Dodd-Frank and the outlook for financial regulation as a whole. He speaks with Kevin Cirilli on "Bloomberg Daybreak: Americas." (Source: Bloomberg)

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