Congress Focused on 'Politics Not Fundamentals': CEO

Congress is focused on "all the wrong things," Jeff Lane, long-time money manager and current CEO of Modern Asset Management, told CNBC today.

Right now, according to Lane, the financial environment is all about "politics not fundamentals" because Washington is angry over the success of many Wall Street companies.

Take Goldman Sachs for example: “Goldman is suffering from success. They're a targetand it's very difficult to analyze targets,” said, the former CEO of Bear Stearns Asset Management.

For that reason, given the current economic climate, he prefers the investment firm Jeffries to Goldman because secondary banks have much more room to grow than the primary ones right now.

It's "virtually impossible," he said, to run a business while checking to see what Congress is doing every day.

However, Lane quickly added, in a "benign" governmental environment he would rather run Goldman strictly on the firm's fundamentals.

Lane believes in the universal bankingmodel—investment services in addition to saving and loans—practiced by the likes of JPMorgan Chase and HSBC.

The banks that failed during the financial crisis were due to poor management as "opposed to structure,” Lane added.

"Congress should be focused on "Fannie and Freddieand the "too-big-to-fail" concept, instead of the Volcker rule," he said.

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