ELIZABETH WARREN JOINING US
FROM CAPITOL HILL. I WANT TO WELCOME YOU BACK TO
BLOOMBERG TV. IT IS A BIG DAY. WE HAVE THE CPI REPORT. YOU FAMOUSLY CALLED A JAY
POWELL A DANGEROUS MAN. NOW THAT WE ARE SEEING
INFLATION ACTUALLY BEGIN TO DROP, THE JOB MARKET HOLDS
STRONG WITH WAGES ACTUALLY RISING. >> IF HE STOPS THE
EXTRAORDINARY RATE INCREASES HE HAS BEEN DOING, WE WILL HAVE
MADE IT THROUGH THIS. WE HAVE GREAT NEWS.
INFLATION HAS BEEN CUT BY TWO THIRDS.
TAKE YES FOR AN ANSWER, CHAIR POWELL. KUENG'S MONETARY POLICY IS ONLY
ONE RESPONSIBILITY OF THE FEDERAL RESERVE. THE OTHER SUPERVISION, THE FED
VICE CHAIR OF SUPERVISION, MICHAEL BARR HAS RECENTLY MADE
A PROPOSAL TO STRENGTHEN CAPITAL REQUIREMENTS.
ARE YOU SATISFIED WITH THIS PROPOSAL?
DO YOU THINK HE HAS THE AUTHORITY WITHIN THE FEDERAL
RESERVE TO SEE IT THROUGH? >> THE ANSWER IS HE CLEARLY HAS
THE AUTHORITY TO BE ABLE TO PUT IT HIGHER STANDARDS AND TO BE
ABLE TO ENFORCE THOSE HIGHER STANDARDS. WE STILL HAVE A LOT OF
PROBLEMS, TOO MUCH CONCENTRATION IN THE BANKING
INDUSTRY, WE HAVE MORE TOO BIG TO FAIL BANKS THAT WE DID AND
IT SHOULD BE TO FAIL BANKS ARE BIGGER THAN THEY WERE BACK THEN.
SO WE ARE NOT OUT OF THE WOODS YET BUT I FEEL A LOT BETTER
WHEN I READ MICHAEL BARR TALKING ABOUT HOW WE NEED TO
TIGHTEN DOWN ON BANK REGULATION. GO MICHAEL. >> YOU HELD A HEARING ON
VACANCY RATE -- THANKS TODAY. WHAT ABOUT SMALL AND
MEDIUM-SIZED BANKS? SHOULD THEY BE ALLOWED TO GET
MARRIED SO THEY CAN BETTER COMPETE? >> THE PROBLEM WE HAVE FACED IS
MORE AND MORE CONCENTRATION AT THE TOP. ALWAYS KEEP IN MIND THAT ONE IS
OBVIOUSLY TOO BIG TO FAIL WITH OUR ENTIRE ECONOMY AT RISK THE
OTHER HALF IS TO REMEMBER IT IS THE SMALL BANKS THAT ARE THE
ONES THAT ACTUALLY DO THE SMALL BUSINESS LENDING AND THAT
DRIVES OUR ECONOMY AND ALSO DRIVES EMPLOYMENT.
THAT THE SMALL BUSINESSES ARE THE ENGINE OF OUR ECONOMY.
ANYTHING THAT WIPES THOSE BANKS OUT IS A BAD IDEA.
FINDING WAYS TO KEEP THOSE BANKS OPEN AS INDEPENDENT OR
ALLIED BANKS, I AM IN FAVOR OF THAT. THE PROBLEM IS THE BIG BANKS
COME IN AND SNAP UP THE LITTLE BANKS. THEY MAKE A HANDFUL OF PROMISES
ABOUT AND NOTHING WILL CHANGE AND THEN THOSE BANKS DISAPPEAR.
WE KNOW AND UP IN A THIRD OF ALL RURAL COUNTIES IN AMERICA,
THERE IS NO SMALL, INDEPENDENT BANK. THERE IS NOBODY THERE WHO ACTUALLY UNDERSTANDS THE LOCAL
ECONOMY AND WHO IS WILLING TO GET ANOTHER BUSINESS THAT WANTS
TO BORROW THAT MONEY. AND SEES THAT AS THEIR JOB IN
BANKING. THAT IS NOT WHERE THE GIANTS
ARE. THEY DON'T DO THE SMALL BUSINESS LENDING.
THAT IS THE CONCERN I HAVE ABOUT CONCENTRATION. >> WE KNOW YOU HAVE CONCERNS
ABOUT CONCENTRATION AND OTHER THINGS THAT WE WANT TO GET WITH
YOU. BUT YOU HAVE SOME CONCERNS
ABOUT SENATOR TOMMY TURBERVILLE. GIVEN THE CONCERNS ABOUT HOW
THAT AFFECTS MILITARY READINESS, WHAT YOU THINK YOU
CAN DO TO BLUNT THAT IMPACT? WHAT WORKAROUNDS DO YOU SEE? >> THIS IS THE PROBLEM WE HAVE
RIGHT NOW. I AM THE CHAIR OF THE SUBCOMMITTEE ON PERSONNEL ON
THE SENATE ARMED SERVICES COMMITTEE.
I AM ON THE FRONT LINES HEARING FROM THE FAMILIES WHO ARE NOW
IN A POSITION SAYING WHERE DID WE REGISTER OUR KIDS FOR SCHOOL?
WE ALREADY SOLD OUR HOUSE BECAUSE WE THOUGHT WE WERE
MOVING THIS SUMMER SO THAT OUR ACTIVE DUTY SERVICE MEMBER WAS
GOING TO BE DEPLOYED SOMEWHERE ELSE AROUND THE COUNTRY OR
AROUND THE WORLD. PROFOUND IMPACT ON FAMILIES.
PROFOUND IMPACT ON OUR MILITARY READINESS. OUR FORMER SECRETARIES OF
DEFENSE ARE CURRENT SECRETARY OF DEFENSE, OUR FORMER
SECRETARY OF DEFENSE WHO ARE REPUBLICAN APPOINTEES HAVE ALL
SAID THIS UNDERMINES MILITARY READINESS. HERE'S THE PROBLEM. THE DEMOCRATS CAN'T STOP TOMMY
TABULA FROM WHAT HE IS DOING. THE REPUBLICANS DIDN'T SAY YOU
ARE A MEMBER OF OUR PARTY, YOU ARE PUTTING NATIONAL SECURITY
AT RISK, YOUR INSULTING UNDERMINING MILITARY FAMILIES
IN THIS COUNTRY, CUT IT OUT. THAT IS THE ONLY WAY WE CAN
UNLOCK THIS HOLD AND ACTUALLY MOVE THROUGH WHAT IS LITERALLY
HUNDREDS OF MILITARY PROMOTIONS AND ASSIGNMENTS THAT ARE JUST
DEAD IN THE WATER AT THIS POINT. >> WE WOULD LIKE TO STAY IN
TOUCH WITH YOU ON THAT STORY. IT IS IMPORTANT TO US AND OUR
VIEWERS AND LISTENERS, I WANTED TO ASK YOU ABOUT SOMETHING AND
SOME NEWS YOU AND YOUR COLLEAGUES ARE MAKING TODAY.
RELEASING A REPORT AND CALLING ON FEDERAL OFFICIALS TO
INVESTIGATE TECH GIANTS AND MAINLY META-, THE COMPANY
BEHIND FACEBOOK FOR SOMEHOW COLLUDING, MAYBE YOU CAN BE
MORE SPECIFIC THEN I WITH THE MAJOR TAX PREPARERS LIKE H&R
BLOCK TAKING MILLIONS OF PEOPLE'S PERSONAL AND PRIVATE
INFORMATION AND GIVING IT TO FACEBOOK PRESUMABLY TO SELL ADS.
IF THIS IS TRUE, THIS IS OUTRAGEOUS, WE WILL GO TO JAIL
FOR THIS? >> YOU ASKED EXACTLY THE RIGHT
QUESTION. PEOPLE WANT TO TAXPAYERS.
AND THEY PAY THEM TO PREPARE THEIR TAXES AND THEN IT TURNS
OUT THE TAX PREPARERS GAVE ACCESS TO ALL OF THIS PRIVATE
INFORMATION ABOUT NAMES AND DEPENDENCE AND WHETHER OR NOT
YOU HAD MEDICAL EXPENSES, ALL KINDS OF INFORMATION TO
COMPANIES LIKE META. WE DID THE INDEPENDENT
INVESTIGATION. I DID THIS WITH OTHER SENATORS
AND WE SENT THIS OVER TO THE DEPARTMENT OF JUSTICE.
THERE IS FEDERAL LAW THAT NO ONE IS PERMITTED TO SHARE TAX
INFORMATION WITHOUT THE PERMISSION OF THE TAXPAYER.
I FEEL PRETTY CLEAR THAT THESE TAX COMPANIES DID NOT GET THAT
PERMISSION BUT I WANT TO TAKE THIS ONE RETURN IF I CAN.
THESE ARE THE SAME TAX PREPARERS WHO RIGHT NOW ARE
LOBBYING FOR HERE IN WASHINGTON TRYING TO MAKE SURE THE IRS
-- IF YOU HAVE PRETTY SIMPLE TAXES, FILL IT OUT ON THE
WEBSITE AND INSTANTANEOUSLY, YOU ARE DONE.
LETTING PEOPLE DO THAT, THE TAX PREPARERS ARE TRYING TO BLOCK
THE IRS FROM DOING THAT. WHY? BECAUSE THEY RAKE IN THE MONEY
EVERY TIME SO HE HAS TO SPEND $200 OR $400 OR $600 TO GET ONE
OF THEM TO PREPARE THE TAXES. THIS REALLY IS BACK TO THAT
FUNDAMENTAL QUESTION, WHOSE SIDE IS GOVERNMENT ON AND THE
TAXPAYERS WANT GOVERNMENT ON THEIR SIDE? NO.
WE ARE TRYING TO GET THE GOVERNMENT ON THE SIDE OF THE
TAXPAYERS SO THEY CAN DO FREE FILING AND NOT HAVE TO WORRY
ABOUT THESE COMPANIES THAT ARE GIVING THEIR DATA AWAY TO
OUTFITS LIKE META. >> AS WE TALK ABOUT THESE LARGE
TECHNOLOGY COMPANIES, OTHER NEWS CAME THIS WEEK. ARE YOU CONCERNED THAT THE
COURT'S ARE GOING TO STYMIE THE EFFORTS OF COMPETITION
REGULATORS IN THE U.S.? >> I THINK THIS IS A BAD
DECISION. AT THE END OF THE DAY, THE
JUDGE BELIEVED META WHEN THEY SAID WE ARE GOING TO DO JUST
FINE AND MADE A BUNCH OF PROMISES DOWN THE LINE FOR WHAT
THEY ARE GOING TO DO. THAT DOES NOT CHANGE THE FACT
THAT THE MERGER ITSELF IS NOT LEGAL.
BUT WE HAVE AN OPINION FROM THE JUDGE.
I WANT TO COMMEND THE FTC FOR TAKING ON HARD CASES.
TAKING ON BIG COMPANIES, TAKING ON CASES THAT IN THE PAST OFTEN
JUST SLID THROUGH CLEAR VIOLATIONS OF THE LAW.
I APPLAUD WHAT THE FTC HAS DONE AND I SAY STAY AFTER IT.
THEIR JOB IS TO GET OUT THERE AND ENFORCE THE LAWS.
IF SOMETIMES A PORT JUST WANT TO HEAD IN A DIFFERENT
DIRECTION, HE DOES NOT CHANGE THE FACT THAT THE FTC IS RIGHT
TO PROMOTE COMPETITION AND TO ENFORCE THE LAW AS IT IS
WRITTEN. >> LASTLY THEN, MAYBE WE WILL
TAKE IT IN ANOTHER STEP EVEN FURTHER FROM THERE, AS WE TALK
ABOUT THE IDEA OF TECH COMPANIES WHETHER IT IS THE
DEFENSE BASED OR ANYTHING ELSE, IS ANYONE TALKING ABOUT
BREAKING UP BIG TECH? WHETHER IT IS GOOGLE OR ANY
OTHER COMPANY YOU MIGHT HAVE IN MIND? >> I THINK ABOUT TALKING ABOUT
BREAKING OF THESE COMPANIES IS RIGHT.
PARTICULARLY BREAKING UP PIECES OF THIS COMPANY.
MY FAVORITE EXAMPLE IS AMAZON. LOOK AT WHAT AMAZON DOES.
IT RUNS THE PLATFORM ON WHICH BUYERS AND SELLERS COME
TOGETHER. IT COULD >> ALL THAT INFORMATION AND THEN BECOMES A
COMPETITOR ON THE PLATFORM. THAT RUNS ITS OWN AMAZON
BUSINESSES. SOMETIMES UNDER THE M'S LABEL
AND SOMETIMES UNDER LABELS NOBODY WOULD EVER FIGURE OUT
THAT THAT IS AMAZON. TO ME, IT IS LIKE YOU COULD BE
AN EMPIRE IN BASEBALL OR YOU CAN HAVE A TEAM BUT YOU DON'T
GET TO DO BOTH AT THE SAME TIME. SO THERE IS AN EXAMPLE FOR ME.
THOSE TWO SHOULD BE BROKEN APART.
CONCENTRATION AND INDUSTRY AFTER INDUSTRY AFTER INDUSTRY
IS A THREAT TO OUR ECONOMY. I THREAT INNOVATION AND
ULTIMATELY, IT OFTEN LEADS TO PRICE GOUGING.
WHETHER IT IS CONSUMERS OR THE GOVERNMENT.
HE MENTIONED THE DEFENSE INDUSTRY.
OVER THE SPACE OF 20 YEARS IN AMERICA WE HAVE GONE FROM
HAVING 55 COMPETITORS FOR THE DEFENSE CONTRACT DOWN TO FIVE.
DO YOU KNOW WHAT THEY ARE LOOKING FOR?
EVEN MORE CONSOLIDATION. WHEN A LITTLE BUSINESS START
UP, THEY DO ONE OF TWO THINGS, THEY EITHER SMASH IT OR BUY IT
UP AND PUT IT THERE. THAT IS HOW IT IS AT THE UNIT
-- WHEN THE UNITED STATES GOVERNMENT ENDS UP PAYING 300
AND $85 FOR SOME INVOLVE -- SOME VALVE THAT COSTS $300 OFF
THE SHELF. WE PAY THROUGH THE NOSE FOR
CONCENTRATION IN THE DEFENSE INDUSTRY, IN BIG TECH, IN BIG
PHARMA, SEEING THE FTC, THE D.O.B.
ANTITRUST DIVISION AND WHAT WE SHOULD BE DOING IN CONGRESS IS
PROMOTING COMPETITION. I BELIEVE IN MARKETS, THE POWER
OF MARKETS BUT THEY ONLY WORK IF WE ENFORCE THE RULES THAT
KEEP COMPETITORS GOING RATHER THAN MONOPOLISTS. >> IS UNLIKE YOU MAY HAVE A
RINGSIDE SEAT TO THE ELON MUSK CZAR -- MARK ZUCKERBERG CAGE
MATCH. >> I AM READY. >> ELIZABETH WARREN, THANK YOU
FOR BEING SO GENEROUS AND SPENDING TIME WITH US HERE ON
BLOOMBERG RADIO. WE WILL BE JOINED BY YOUR
