The Annual Senate hearing on US banking was different this year, turning most of the attention to a single topic—the proposed new banking regulations that would radically reshape the industry. In years past, the committee grilled the assembled CEOs of America’s top banks on a wide range of topics, from assisting underserved communities to community development. Not this year as the leaders of eight banks, among them Jamie Dimon, CEO of JP Morgan and Bryan Moynihan of Bank of America, gathered in DC.

As DICK BOVE recalls, there was widespread criticism of the new rules on both sides of the aisles and among the bankers. BOVE, chief financial strategist at ODEON CAPITAL GROUP, said the industry view is that the rules would reduce bank lending as well as hurt the US economy. “This raises the question as to why are these regulations being discussed when everyone is against them,” according to BOVE. “The reason is that the government cannot meet its obligations.” In an interesting twist, as banks' capital requirements increase, and as they scale back in a range of money making activities, US banks may become larger buyers of US Treasuries. The CONVERSATION assesses one strategy— stock buybacks — many US banks and other public companies have used to shore up their stock price. “I believe in the free markets but this is disgusting,” says MAT VAN ALSTYNE, ODEON co-founder and managing partner.

Meanwhile, BOVE is out with his latest measure of the US Money Supply. He explains the methodology and why this is substantially larger than the Fed's official count of the US Money Supply. The CONVERSATION also parses the latest data on inflation and labor as the Fed deliberates this week on the trajectory of US interest rates. While inflation continues to cool, there may be some evidence of “a little bit more heat” in the inflation numbers than is immediately evident, according to VAN ALSTYNE. BOVE reports on wage data based on college and non-college educated workers. JOHN AIDAN BYRNE, our host, quotes the opinion of one commentator: US universities are pursuing political agendas instead of excellence. Elsewhere, we look at significant global events.

Questions & Comments: Podcast@odeoncap.com

Surprising New Buyers for US Treasuries. Money Supply Much Bigger Than Fed Tally. Large Scale Write Offs As Bank Rules Reduce Activity, Hurt Stocks. Russia Doubles Income on Oil Exports

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