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Discover opportunities in a transforming world, B of A.M.com. slash VR. Merrill Lynch, M.L.com slash VR, Merrill Lynch, Pierce, Fenner, and Smith, Incorporated. Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene with David Gura. Daily we bring you insight from the best of economics.

Finance investment and international relations.

Find Bloomberg surveillance on Apple Podcasts, SoundCloud, Bloomberg.com, and of course on the Bloomberg.

Joining us now in our Bloomberg 1130 studios is William Lee

Bill is the chief economist at the Milken Institute. It's great to have you with us here

Great to be here David. Let me start with these two Italian banks. I will not

torture the audience but trying to pronounce them, but I want to talk to you about

regulation here in the

U.S but let's let's start broader let's start with the message this sends this

Italian bailout sends about how the regulatory landscape looks at looks in

Europe in the regulators are trying to fix the European banking system by saying,

you look, we got to get bail in.

We got to get the stakeholders who really care about the banks.

And so they want the management to say, we're going to do better banking,

we're to get better loans, and the stakeholders have got to make sure that management does that.

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