Former Banker Sony Kapoor Discusses Banking Regulation

now other important matters in from
congress is banking regulation and for the person to help us talk about that
cycle poor he is the managing director redefine dot org is a former banker
sunny one million turks thank you very much so you are recommended that highly
by a lot of our listeners and they said we gotta get your own talk about this issue and having read some of the
subway listen live of but uh… telus o first off omg let’s start with the old bomber
proposals off are they strong enough are they
going to right direction whether it’s the consumer protection it exhibit they
want setup five percent of good well let’s see what they should attack
protection agency is a strong gate broadly speaking about the cause of are
all in the right direction that again if you look at rare we were
talking prom the situation that so back to the
regular region but so bad that it doesn’t it doesn’t take that much to
make things better but whether they go far enough days a
separate question altogether and the quick comes to that if they don’t quite and that you started with the computer
production again in fact it’s a great idea admits quite remarkable that you
haven’t act one-up up till now and that could have big lecture
vanderveer also up for that i would love to have payday loan that
two thousand four hundred but the interest you had fifty credit cards going to people who don’t need credit and you
have almost no credit available to people who actually do so if you have a system where facts have
been profiting massively end up unscrupulous lenders i’ve been propping
absolutely from upcoming unsuitable financial
products to those actually lift understood them extracting
massive margin and that society has paid caught so act some minimum per year to absolutely need to convene a
protection agency and if you look at the scale-up white odds that it out in the congress with
the likes of j_p_ morgan et cetera posing get but you can see why they’re pointing to
the committee to the profit margin fit people who are going to hold them
accountable toward the stuff that this trial which could be toxic to people all these surviving just
barely surviving at the parking lot was larger issue because the republics would
argue no this is tumor in fact cerebellum is are even today in hong kong in a speech
where she bash financial regulation any taxes at all ando bomber uvm they would
argue that uh… no the promise too much government interference in that we
should be regulated and more the financial industry well finances inherently unstable left itself rather than the hips black
so what do you have is if you go and buy a
car you’re going to pick it up for a test drive when you go and buy insurance for when
you go by your pension you cannot best right pension and
insurance in the first time that you relied at the insurance product you
bought doesn’t cover the house age when it’s
just burnt-out the foot fund if you’re a life of the pension product that you
have that you’ve been putting defendants it’s not the right product it’s going to
be cool if you’re retired and you’re going to be able to who put together a top of the money that
japanese so financial products that needs to be someone backing the product containing
yes these products are ok if they can be
trusted trust is right at the heart of the
financial predicament because you cannot grow effective products it’s far more important second did you
know if you buy a couple of yukon throat that nothing like that yukon bike not
blended say hey if i don’t like them not to buy it if you thought about upto you just don’t buy from the french up
another date right by me minimal impact on the right there financial products have a long-term
commitment pubi wrong insurance politics are by a drunk pension product it could
affect the rest of your life so the combination of not being able to
wrote this product and long-term period caught the concerned about being mean that that needs to be an external
body that was saying that ok buchanan i’ll fix your pride you need to trust
them attractive so offensive weapon trust in
finance breakdown that ever because that money closed that
trash people don’t spend people don’t invest
which is individually rational that directly don’t but you don’t trust but
he made up and you don’t put him in brother but technically the documents will be
spending nobody terrible death of the month up their cars lined up so that the
economy goes into attempt another tapped out for all these reasons having regulations
fine dont which provides quality control which
provide bloomer the confident that what that doing aggravate repeated that are
getting cheated it extremely critical predictability of the whole economy or jonah cycle for he is a former
investment banker in derivatives trader and that he’s not managing editor of
redefined out awards so dimension there of the products and whether we can trust
them in our financial products well today uh… there was a war and
movie stars testifying in front of congress saying always we would artificially pump
up the ratings because of the guys who are paying us and um… we would get you know ratings that was harder level security
than they actually worked on and that we did a for obvious financial
reasons so need to redo the entire ratings system
that that we have now and if we do how should we do it should we make a
non-profit should we make you did they get paid by the government because they
get paid by the corporations they’re reading obviously gonna fix a rating
system but let me go back to exploit the
different issue report come back to the correct it cold issue if i got to put the
compensation uh… temperatures listed below the
pictures they threw out the look at that particular raping a panther kept pace and against your finances different to
other parts of the economy not think you’re a really good bad text you know you make one thousand dollars
an hour or something and you work really hard you work
eighteen on today’s u_n_ eighteen thousand on the date that they are still
limits how much money you can gardens based on
the number of our review can work and find out i’m doing a trade for a hundred thousand
dollars and that i borrowed some money but from
leveraging and i’m going to camp chair tonight
suddenly starting to trade for ten million dollars suddenly find that my property shot of a
hundred phone except i’m not putting my money but i’m
betting your money export funny being messed up and coming out of twenty but suddenly i’m cable to report prophet
which are completely out of proportion to any effort i have put into the deep sofa that is why wouldn’t bank say that they ought to get bait of huge
amount of money for generating the huge amount of profit they are wrong because these huge
amounts of profit are actually coming up the cost of rift which are being taken
by taxpayers which are being taken by method it’s not their money and find out the link between input and property is much weaker than in
other professions where you actually got to put my head i put african so what happens is that the gunfight in
five hundred extremely limited get elected your picture that you pick
massive brick and point your credit rating if if you could play three things
that at the going about their picking massive
amounts of money they get paid on an annual basis and this money stick it out and that
didn’t happen the railroads and that trio down the line because of
the actions the infusion blows up brisket scenario if you do a good job uh… and if you go up in a spectacular
rate you go to britain but then you come out and write a book and become family and the uptight it ten million dollars
hundred million dollars so the gunfight being limited the
applied being potentially unlimited means that people are going to be
engaging behavior where they don’t have to pay the private got but to fight the
doubts at taxpayers do when they need to bail
out these institution connected to and if you want their money pensioners do
and if you don’t like fitting strikes those those points i think are
indisputable and i agree completely with you in terms of biggest address this
with other people’s money who has agreed that is such a system of sanity as much rest as possible to make as much
money as possible now how do we fix it though buck there are several greatest recommended
but one of the rate that need to be considered total republican but critics
six trickling in eight that update to be caps on both dates and it can come in one of two ways one
is either actual mandate capt up well actually that the third replicas so lightening created on site where you
think it’s corrupt we contribute to present that’s
unrealistic option so the only two options left our used
limit the up side that you failed to warriors you cannot have borne of took
more than three hundred button of your family or a hundred and fifty parking a
family could think of employees work for what you pay them more but the bonuses what student center and
production is rich is being considered by the g twenty and i hope they will do
something about it financially it to limit totaled bonuses paid as a
profit all at the front page off the property of the firm selected your bank and that the world
you cannot devoted to the boat you know fight for the pen tips and the gross
profit at the front tobacco also take care of some of these problems because that has
been limited voters los angeles of each other by nobody taking those risks and the
money goes to affirm it still comes back to them have in a fairly indirectly frilly direcway overall up
how about qua back so call backs realistic where you say hey you know
what but if the company says that we come back and they got money the we
thought you made we didn’t actually well but if you have called back advocates
many bank of the night no to that in their up spend a lot of money n bailey lavish life but it’s not like the
money that they have been bothered five years back is lying in the back breaking
for the bag to confiscate the pancake they have a lot and if you can put your clothes go back that they are actually have an incentive to keep cave
let let let me and to spend more and more enjoyed that off that’s a very good
point we have about a minute left saigon was on this one was recovered this has
grown we don’t let them gamble so i’m not
saying you did uh… don’t allow derivatives some on a property or or
finances while you actually have dilemmas your down side but you cannot bear on anything you do
not own there what they call the naked credit default swap you do not like the good goto reserve
solving a problem overall it’s a good idea particularly if
you were able to brett that detective it without bread salad and you
were able to buy the children from that that allot of people who actually trial
from federal around and somebody would care lifted from aspect and this is what
happened in bed with it but you’re instead backed on that you have no other
languages and then you have a strong incentive to
make that bad even happened which could be the collapse of or which could be
betting against they should be starting rumors in the
market so it’s a very dangerous with them and i
think this might be a all not allowing people to pay vets we had to do not have
an underlying interval interest uh… is a good wanted me to work dot in
some detail but overall it’s a good idea sunita four thanks so much as it was
really appreciates you’re most welcome i suddenly decided on the world

14 comments on “Former Banker Sony Kapoor Discusses Banking Regulation”

  1. hawie55 says:

    Great interview!

  2. franz polak says:

    he's japanese or something (his name is sony). the dictionary of stereotypes says they're good at electronics, not the economy.

  3. ex yzee says:

    "Trust is right at the heart of the financial system." Nah, confidence is at the heart – that's why it's called a confidence game.

  4. ex yzee says:

    Franzpolak, that's racist slander. Maybe you should reconsider getting out of bed tomorrow.

  5. franz polak says:

    i thought it was quite clear that i was joking.

  6. lonelytrixter says:

    He's a good guest. I've seen this guy being interviewed on the Real News Network and he makes some excellent points and is very good at explaining the issues of the financial system.

    One idea I'd like to add to this is change the bonus system so that it rewards long term profit over a number of years rather than yearly or even quarterly profit. Have the bonuses paid over a period of say 3 to 5 years based on the total average performance over all of those years.

  7. lonelytrixter says:

    It would give people less incentive to take so many risks that get short term profits and reward them based on what actions they have taken to ensure the long term viability of the company.

  8. yamuboy says:

    Talking about stupid arguments….

  9. PhantasyGod says:

    So what if his name is sony. i have seen people name jesus.. that dosent me they are JESUS. man cant beleve [email protected] these days. UNLESS u are being funny and ur statement is ment as a joke. then forget my comment.

  10. PhantasyGod says:

    First of all do u know if he is an illegal immigrant? or did u get that fact right from ur @ss from where u get most of ur facts. u ignorant [email protected] THINK BEFORE U SPEAK [email protected]

  11. PhantasyGod says:

    the subject of matter that you mentioned sarcasm of is very sensitive and can be taking wrong direction by anyone. Clerify your statement and plz next time do not make fun of things that are of serious matter.

  12. franz polak says:

    i was joking.
    check the other comment out.

  13. eirefrance says:

    This is probably the most important interview on Youtube right now.

  14. SheStillRuns says:

    Sony Kapoor seems to know his stuff. I'd like to know if there are instances where Re-define's suggestions have led to clear benefits or have salvaged situations.

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