Putting a stop to extravagant corporate perks

[0:00] ..." We're talking with professor Cornelius Hurley the director of the Boston University -- and center for banking and financial law and a former chief counsel to the Fed board of governors. We're talking about what's wrong with the banking system and fixes that the Obama administration might consider to make things better. As -- more banks take his bail out money and more. On well depend upon your point of -- abuses coming out how they're using the money. You keep hearing more and more talk about maybe it did the federal stake in the banks. Should be a larger one IE maybe the bank should -- national on as somebody with background in this cereal wondering what your thoughts are on."...

[0:40] ..." What a year -- national -- you mean nationalize the banking system and -- who weren't doing -- kind of -- way at the moment is live in -- promise safety -- under all of the large banks and then for many of the others hundreds of the -- who raised their hand -- from -- lifeline in the form"...

[1:51] ..." of the policy from the Obama administration as far as this bad bank. Issue goes and that -- may be the the event that throws at a over the Walt."...

[2:01] ..." When you get into this I know that people's immediate response is nationalizing banks oh my goodness that's socialism but is there like I guess I socialism light when it comes to hit. This area any"...

[2:24] ..." it took doesn't have to necessarily mean for example speak. The treasury the Fed decided that -- return for their investment. They wanted to have representation on the board just like in need normal shareholder. Interest"...

[3:47] ..." shameful episode taking eighteen billion dollars in bonuses -- de funding the Super Bowl. 400 million dollars for city park for the Mets and New York. All of these two kind of symbolic gestures -- in the public anger but want to do once we get that anger"...

[0:00]" We're talking with professor Cornelius Hurley the director of the Boston University -- and center for banking and financial law and a former chief counsel to the Fed board of governors. We're talking about what's wrong with the banking system and fixes that the Obama administration might consider to make things better. As -- more banks take his bail out money and more. On well depend upon your point of -- abuses coming out how they're using the money. You keep hearing more and more talk about maybe it did the federal stake in the banks. Should be a larger one IE maybe the bank should -- national on as somebody with background in this cereal wondering what your thoughts are on."

[0:40]" What a year -- national -- you mean nationalize the banking system and -- who weren't doing -- kind of -- way at the moment is live in -- promise safety -- under all of the large banks and then for many of the others hundreds of the -- who raised their hand -- from -- lifeline in the form two equity always -- however is stepped right into the courtroom ordered to the management suites and I think that's what -- to. And actually control those institutions. That's a much more problematic step but there is certainly the indicators are that we may be moving that direction. Problematic -- probable bet -- because it throws the federal government into the unenviable position of allocating credit of deciding who the winners and losers -- just didn't banking by the end the industries which is every industry that relies upon the banking system for credit and I'm not sure where. Ready to take that step up we may have to take it one way or the other. It appears that the next week is going to be very important one in terms of the an announcement of the policy from the Obama administration as far as this bad bank. Issue goes and that -- may be the the event that throws at a over the Walt."

[2:01]" When you get into this I know that people's immediate response is nationalizing banks oh my goodness that's socialism but is there like I guess I socialism light when it comes to hit. This area any people keep talking about the fact that well you know the taxpayers are in this for hundreds of billions of dollars. Don't they deserve something in return doesn't that smack about."

[2:23]" Well if it does this and it took doesn't have to necessarily mean for example speak. The treasury the Fed decided that -- return for their investment. They wanted to have representation on the board just like in need normal shareholder. Interest to what does seek. There are many examples of public interest directors representing the government on board to private corporations are at the door open and that capacity and a couple of companies. And the public interest director doesn't necessarily mean they. A person with a tie dyed T shirt and a scruffy beard and blonde hair sitting there. -- that we you know throwing hand grenades across the board table. A public interest directors and make a positive contribution. To an organization. And I think we may be we may be heading and in that direction not the type -- direction but the more positive direction."

[3:35]" This is all about confidence and you're right -- have two quell the anger and I think the Obama administration has kind of stoked of that anger in the last a week or so but pointing out people. The shameful episode taking eighteen billion dollars in bonuses -- de funding the Super Bowl. 400 million dollars for city park for the Mets and New York. All of these two kind of symbolic gestures -- in the public anger but want to do once we get that anger that's quelled -- that that's just the first step up. There is more or a significant step is restoring. Confidence in the could take. A more disciplined and the by the government to him directing these organizations to get to that level of confidence now and then Soviet."