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Cliff Notes: The Impact of Artificial Intelligence on Antitrust and Banking · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
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  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
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  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
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  Speaker 1: filming and selling child pornography in Michigan. These are just
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  Speaker 1: some of the heinous migrant criminals caught because of President
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  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
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  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
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  Speaker 1: crossings are at the lowest levels ever recorded, and over
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  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
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  Speaker 1: are here illegally, your next you will be fined nearly
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  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
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  Speaker 1: never return. But if you register using our CBP home
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  Speaker 1: app and leave now, you could be allowed to return legally.
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  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
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  Speaker 1: border and families will be protected.
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  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Artificial intelligence is obviously taking over the world, but very
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  Speaker 3: few people are in power to actually program these these
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  Speaker 3: these artificial intelligence programs right and consciously or subconsciously, the
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  Speaker 3: artificial intelligence is getting programmed in the likeness of the
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  Speaker 3: person that's actually programming it, right, with their ingrained biases,
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  Speaker 3: with their ingrained opinions. It's just human nature. Very very
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  Speaker 3: few black people, very few women, very few a variety
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  Speaker 3: of anybody other than a certain tech group of white
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  Speaker 3: men are actually in position to shape how artificial intelligence thinks,
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  Speaker 3: which could be extremely dangerous because if you have three
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  Speaker 3: percent of the popular one percent of the population that's
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  Speaker 3: programming one hundred percent of artificial intelligence, the artificial intelligence
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  Speaker 3: is going to think just like the one percent of
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  Speaker 3: the programmers, and they're going to have, like I said, biases.
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  Speaker 3: So now you have artific visual intelligence that's racist, that
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  Speaker 3: has biased based on the programming that has been done.
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  Speaker 3: So are you guys thinking about that, and if so,
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  Speaker 3: are you having any level of input or are you
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  Speaker 3: looking to enforce some regulation on the programming of artificial
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  Speaker 3: intelligence so that it has some level of more diversity
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  Speaker 3: as far as the computers the way that they're actually
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  Speaker 3: programmed to think.
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  Speaker 4: The great question. So the administration has issued an executive
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  Speaker 4: order on artificial intelligence. There's a lot of factors and
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  Speaker 4: a lot of planks, but to your point, one of
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  Speaker 4: the most important aspects of that executive order is that
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  Speaker 4: AI needs to be safe, and that there needs to
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  Speaker 4: be testing, and that it should be free of those
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  Speaker 4: kinds of biases. But I think that the problem that
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  Speaker 4: you've just tied up, I think goes back to why
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  Speaker 4: anti tryus is so important. Anti trust is about the
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  Speaker 4: dispersion of economic opportunity. It's about removing structural barriers to
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  Speaker 4: economic opportunity. And the very fact that a small number
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  Speaker 4: of people, whoever they are, can control the market experiences
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  Speaker 4: of potentially hundreds of millions of Americans and people globally
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  Speaker 4: is just like right on the nose about what anti
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  Speaker 4: trust is intended to enforce. And so to me, it
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  Speaker 4: sets up a choice between two paradigms. One is trying
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  Speaker 4: to fix flawed inputs, trying to make sure that you
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  Speaker 4: know data sets, and the objective function of some of
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  Speaker 4: these algorithms is you know, doesn't offend law and policy
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  Speaker 4: for good reason, And there's some people who favor that
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  Speaker 4: as an anti trust enforcer. I'm thinking about the entire
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  Speaker 4: power problem, and so to me, I would not want
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  Speaker 4: one company, a small number of companies to have such
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  Speaker 4: outsize power, and so I favor structural approaches, which is
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  Speaker 4: to say, making sure that there isn't that kind of
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  Speaker 4: power in the first instance over AI. And again that
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  Speaker 4: is consistent with the anti monopoly tradition in this country
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  Speaker 4: and the spirit of the anti trust laws. Right like,
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  Speaker 4: our first anti trust law is called the Sherman Act,
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  Speaker 4: and Senator John Sherman makes these impassion pleas on the
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  Speaker 4: floor of the Senate in eighteen ninety and he says
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  Speaker 4: that this stuff is antithetical to our form of government,
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  Speaker 4: that if we wouldn't endure an emperor, we shouldn't endure
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  Speaker 4: the autocrats of trade. And I think that that's really
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  Speaker 4: resonant now, right Like, we think about the dominance of
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  Speaker 4: these companies and how four men, you know, maybe a
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  Speaker 4: few others are again having outsized control of every aspect
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  Speaker 4: of American life, and I don't believe it can be
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  Speaker 4: justified on legal, any trust grounds, or just basic notions
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  Speaker 4: of the foundations for democracy.
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  Speaker 5: Any thoughts on what could be done to help black
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  Speaker 5: owned banks close the gap between how many of us
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  Speaker 5: are doing business with them versus their counterparts like JP Morgan,
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  Speaker 5: Bank of America, et cetera.
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  Speaker 4: Sure, so banks are special financial institutions and there's actually
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  Speaker 4: a long history of how anti trust has been concerned
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  Speaker 4: about the financiers in consolidating important industries. At the Any
• 5:47
  Speaker 4: Trust Division, we are thinking about bank merger policy because
• 5:52
  Speaker 4: we know that forty nine percent of all black households
• 5:56
  Speaker 4: in America are actually under banked, compared to just fifen
• 6:00
  Speaker 4: percent of White America ernerds.
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  Speaker 6: This episode is brought to you by P and C Bank.
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• 7:53
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 7:57
  Speaker 1: in Massachusetts. An MS thirteen gang from Al Salvador accused
• 8:02
  Speaker 1: of murdering a Texas. Man of Venezuelan charged with filming
• 8:06
  Speaker 1: and selling child pornography in Michigan. These are just some
• 8:10
  Speaker 1: of the heinous migrant criminals caught because of President Donald J.
• 8:13
  Speaker 1: Trump's leadership. I'm Christy nom the United States Secretary of
• 8:17
  Speaker 1: Homeland Security. Under President Trump, attempted illegal border crossings are
• 8:22
  Speaker 1: at the lowest levels ever recorded, and over one hundred
• 8:26
  Speaker 1: thousand illegal aliens have been arrested. If you are here illegally,
• 8:30
  Speaker 1: your next you will be fine nearly one thousand dollars
• 8:33
  Speaker 1: a day, imprisoned and deported, you will never return. But
• 8:38
  Speaker 1: if you register using our CBP home app and leave now,
• 8:41
  Speaker 1: you could be allowed to return legally. Do what's right,
• 8:45
  Speaker 1: leave now. Under President Trump, America's laws border and families
• 8:50
  Speaker 1: will be protected.
• 8:51
  Speaker 2: Sponsored by the United States Department of Homeland.
• 8:53
  Speaker 4: Security, and those statistics are according to the Federal Reserve.
• 8:58
  Speaker 4: And black Americans are looking to cost are and offered
• 9:01
  Speaker 4: predatory alternatives to banking institutions. And so the other problem
• 9:07
  Speaker 4: is that when there's a lot of consolidation of banks,
• 9:11
  Speaker 4: they become less sensitive to the needs of communities, which
• 9:17
  Speaker 4: ultimately affects the wealth of communities. And so we are
• 9:21
  Speaker 4: rethinking our bank merger guidelines to be more lucid to
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  Speaker 4: all of the ways that bank merger consolidation can really
• 9:30
  Speaker 4: harm communities when they are further and further away from communities.
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  Speaker 4: I should also say that there's a huge role of
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  Speaker 4: other federal agencies, to include the Federal Reserve, the CFPB,
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  Speaker 4: the OCC and others who are tasked with thinking about
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  Speaker 4: all of the non antitrust and all of the non
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  Speaker 4: competition reasons to either permit bank mergers or not. And
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  Speaker 4: one of those important factors is convenience and need factors,
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  Speaker 4: And so I suspect that they will be more focused
• 10:08
  Speaker 4: on the needs of communities because the consequences can really
• 10:13
  Speaker 4: have awful knock on effects for black business formation, black
• 10:18
  Speaker 4: home ownership, you know, and it's not just black people, right.
• 10:21
  Speaker 4: There's you know, really harrowing account of how bank consolidation
• 10:27
  Speaker 4: has hurt folks all across the country, and how mergers
• 10:30
  Speaker 4: have really hollowed out the middle of the country, which
• 10:34
  Speaker 4: has a number of social, political, and economic consequences, you know,
• 10:39
  Speaker 4: for all of us and and for the health of
• 10:41
  Speaker 4: her democracy.
• 10:43
  Speaker 7: Yeah, the banking numbers, the statistics are pretty alarming. The
• 10:46
  Speaker 7: six largest banks companies have it messed as many assets
• 10:51
  Speaker 7: as all other bank holding companies combined. I mean, these
• 10:54
  Speaker 7: these numbers are pretty startling. One lessons is that I
• 10:56
  Speaker 7: want to regiate the one United the largest black home
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  Speaker 7: bank in the US manages sixty six hundred and twenty
• 11:02
  Speaker 7: five million dollars in assets. In comparison, Bank of America
• 11:05
  Speaker 7: manage is nearly two point five trillion, And so those
• 11:09
  Speaker 7: numbers are pretty staggered.
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  Speaker 2: When we talk about monopoly.
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  Speaker 7: It feels right when we so what happened with regional banks,
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  Speaker 7: we saw what happened with minority old blanks as they
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  Speaker 7: see to continue to consolidate that gap wide and even further.
• 11:21
  Speaker 7: I want to go back to something that Shatty was
• 11:23
  Speaker 7: talking about when we talk about artificial intelligence. I wonder
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  Speaker 7: how you guys are approaching this in terms of the
• 11:28
  Speaker 7: job market. When we talk about working wage, when we
• 11:30
  Speaker 7: talk about workers, there's a fear from people that jobs
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  Speaker 7: will be replaced and automation will become at the forefront
• 11:38
  Speaker 7: of the new job movement. A lot of those jobs
• 11:40
  Speaker 7: will are probably be taken are manned by people that
• 11:44
  Speaker 7: look like us right now. And so how are we
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  Speaker 7: looking at this from an anti competitive standpoint?
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  Speaker 4: You know, there's an entire body of research on the
• 11:58
  Speaker 4: failures of competition in later markets that if we had
• 12:01
  Speaker 4: another five hours to talk about, I would love to
• 12:04
  Speaker 4: take you through all of it. On the AI example,
• 12:07
  Speaker 4: in particular, I think that there are already realized fears
• 12:13
  Speaker 4: of how artificial intelligence can make the conditions of work
• 12:18
  Speaker 4: or the availability of work more tenuous. You know, it
• 12:23
  Speaker 4: is a fact that technological innovation can wipe out a
• 12:27
  Speaker 4: number of jobs. Sometimes that's for reasons having nothing to
• 12:31
  Speaker 4: do with violations of law, to include the anti trust laws.
• 12:35
  Speaker 4: But other times, when they're really stark asymmetries of power
• 12:41
  Speaker 4: between employers and their workers, there's good reason to think
• 12:46
  Speaker 4: about whether there's a competition problem in the market. I
• 12:50
  Speaker 4: recently read, and I won't name the company, but I
• 12:53
  Speaker 4: recently read that one of the sharing economy companies is
• 13:00
  Speaker 4: thinking about using AI to figure out what wages or
• 13:07
  Speaker 4: fares to offer workers, and that struck me as remarkably concerning,
• 13:14
  Speaker 4: if not dystopian. It is worth thinking more about whether
• 13:20
  Speaker 4: there are failures of competition market structures that allow them
• 13:24
  Speaker 4: to do that. But the fact is, some people are
• 13:26
  Speaker 4: very desperate, and if your prior willingness to take extremely
• 13:31
  Speaker 4: low wages essentially means that companies are going to offer
• 13:35
  Speaker 4: you more of that. That is a reason to be concerned,
• 13:40
  Speaker 4: and so we are taking all of this information in
• 13:44
  Speaker 4: at the Justice Department. We're thinking deeply about it, and
• 13:48
  Speaker 4: if we believe that the facts and the law warrant
• 13:51
  Speaker 4: law enforcement on those issues, we will not hesitate to
• 13:55
  Speaker 4: do so.
• 13:55
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 13:59
  Speaker 1: in massachue An MS thirteen gang member from Al Salvador
• 14:03
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 14:07
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 14:11
  Speaker 1: some of the heinous migrant criminals caught because of President
• 14:15
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 14:19
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 14:23
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 14:27
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 14:30
  Speaker 1: are here illegally, your next you will be fined nearly
• 14:34
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 14:38
  Speaker 1: never return. But if you register using our CBP home
• 14:42
  Speaker 1: app and leave now, you could be allowed to return
• 14:45
  Speaker 1: legally do what's right. Leave now. Under President Trump, America's laws,
• 14:51
  Speaker 1: border and families will be protected.
• 14:53
  Speaker 2: Sponsored by the United States Department of Homeland Security,