| 00:00:43 |
none, -
WORTHWHILE ENDEAVOR FOR THE COMMITTEE. ON THE BROADEST LEVEL, THE PERFORMANCE OF THE BANKING SYSTEM IS CRITICAL TO THE FUNCTION OF THE OVERALL ECONOMY....
|
| 00:03:47 |
Unidentified Speaker, -
HAVE TO SAY. >> I WOULD LIKE PERMISSION TO PUT MY -- >> WITHOUT OBJECTION, YOUR COMPLETE STATEMENT WILL BE MADE PART OF THE RECORD IN ITS ENTIRETY. SENATOR...
|
| 00:04:02 |
Unidentified Speaker, -
LOOK FORWARD TO WORKING ON
|
| 00:04:04 |
Unidentified Speaker, -
REG RELIEF BEFORE US TODAY. >> I DON'T KNOW IF YOU WERE HERE
|
| 00:04:08 |
Unidentified Speaker, -
A MINUTE AGO, I DID ACKNOWLEDGE YOUR WORK IN
|
| 00:04:11 |
Unidentified Speaker, -
THE REGULATORY RELIEF AREA. AS WE ALL KNOW, THERE ARE A LOT OF LAWS AND REGULATIONS
|
| 00:04:16 |
Unidentified Speaker, -
THAT HAVE NO -- HAVE NO MEANING IN TODAY'S FINANCIAL WORLD, EXCEPT TOED A BURDEN OF COST, YOU KNOW, TO PEOPLE. >> YOU'RE CORRECT, MR. CHAIRMAN.
|
| 00:04:27 |
Unidentified Speaker, -
I DID HAVE A STATEMENT ON THAT. I'M NOT GOING TO GIVE IT ALL BECAUSE I HAVE QUESTIONS FOR THE PANEL AND I'D LIKE TO GET INTO THOSE. BUT I APPRECIATE...
|
| 00:04:46 |
Unidentified Speaker, -
NEED TO MOVE ON TO THE PANEL. I WELCOME ALL OF THEM TO THIS HEARING. I WANT TO THANK YOU AND RANKING MEMBER SARBANES FOR HOLDING THIS HEARING. MY CONSTITUENTS...
|
| 00:05:00 |
Unidentified Speaker, -
AND SMALL FINANCIAL INSTITUTES. WE HAVE A HUNDRED SMALL BANKS
|
| 00:05:04 |
Unidentified Speaker, -
REACHING INTO THE MOST REMOTE OF OUR COMMUNITIES. SHE HAS SMALL BANKS AND CREDIT UNIONS PROVIDE SUPPORT TO THE COMMUNITIES THAT MIGHT BE UNDERSERVED....
|
| 00:08:05 |
Unidentified Speaker, -
UP, AND OTHERS I THINK INTEND TO AGREE WITH ME ON THAT. I DON'T KNOW IF IT'S A MAJORITY BUT I'LL BE GLAD TO SIT DOWN WITH YOU AND LOOK AND SEE IF WE...
|
| 00:09:44 |
Unidentified Speaker, -
TO DECLINE, BUT BANKS WERE WELL POSITIONED TO DEAL WITH EMERGING PROBLEMS. THEIR CAPITAL POSITION WAS STRONG, THE INDUSTRY'S OVERALL ASSET QUALITY...
|
| 00:17:52 |
Unidentified Speaker, -
IS IN EXCELLENT HELICOPTER. EARNINGS ARE AT HISTORICALLY
|
| 00:17:54 |
Unidentified Speaker, -
HIGH LEVELS FOR A DECADE. NATIONAL BANKS SET A RECORD FOR RETURN ON EQUITY AND ON ASSETS. LOAN GROWTH HAS BEEN STRONG OVERALL. IN 2002 AND 2003, TOTAL...
|
| 00:23:24 |
Unidentified Speaker, -
NEW SOURCES OF FEE INCOME AND COST CONTAINMENT EFFORTS HELPED TO BOOST THE NET OPERATING INCOME OF THE INDUSTRY. RECORD EARNINGS IN TWO YEARS IN A...
|
| 00:29:37 |
Unidentified Speaker, -
SYSTEM AND THE SYSTEM IS AT ITS
|
| 00:29:39 |
Unidentified Speaker, -
BEST PROFITABILITY LEVEL THAT IT'S EVER BEEN AT, LOAN LOSS RESERVES ARE WELL ADEQUATE TO COVER ALL EXPECTED LOSSES, CAPITAL IS THE HIGHEST THAT IT'S...
|
| 00:32:24 |
Unidentified Speaker, -
ALL INDICATORS PORTRAYING A SAFE AND
|
| 00:32:26 |
Unidentified Speaker, -
SOUND INDUSTRY SERVING OVER 82 MILLION AMERICANS. AND WELL POSITIONED FOR CONTINUED STRENGTH IN OUR FINANCIAL MARKETPLACE, BOTH NOW AND IN THE FUTURE....
|
| 00:37:07 |
Unidentified Speaker, -
OF THEM THAT
|
| 00:37:09 |
Unidentified Speaker, -
ARE CODED FOUR OR FIVE. WE'RE WATCHING THOSE CLOSELY. WHERE THE MARKET WILL LEAD, WHERE OUR CORRECTIVE ACTION WILL BE REQUIRED WILL BE TAKEN -- WE ...
|
| 00:37:24 |
Unidentified Speaker, -
THEM WILL NOT MAKE. THAT IS A PART OF THE DIFFICULT PART OF
|
| 00:37:27 |
Unidentified Speaker, -
OUR JOB. BUT THAT IS OUR JOB NONETHELESS. IN 2003 WE WERE CALLED UPON TOLY QI DADE OR PURCHASE 13 FEDERALLY INSURED CREDIT UNIONS. THIS IS TRENDING...
|
| 00:38:44 |
Unidentified Speaker, -
AS YOU HEARD FROM MY
|
| 00:38:46 |
Unidentified Speaker, -
COLLEAGUES, THE GENERAL HEALTH OF THE BANKING INDUSTRY IS EXCELLENT. STATE CHARTERED BANKS WHICH MAKE UP APPROXIMATELY 3/4 OF THE COMMERCIAL BANKS...
|
| 00:44:29 |
Unidentified Speaker, -
CHAIRMAN. >> THAT'S WHAT I WANTED TO HEAR FROM YOU, BUT ONLY -- THAT'S IN KEEPING WITH ABOUT DOZENS OF OTHER ECONOMISTS, YOU'RE AN ECONOMIST THAT FEEL...
|
| 00:44:51 |
Unidentified Speaker, -
THAT? >> I DON'T WANT TO GET INTO SPECIFIC
|
| 00:44:54 |
Unidentified Speaker, -
NUMBERS AND INDEED, I'M GOING TO BE GETTING INTO THESE DATA IN SOME DETAIL TOMORROW FOR THE JOINT ECONOMIC COMMITTEE. BUT THINGS ARE CHANGING. WE EVIDENCE...
|
| 00:45:13 |
Unidentified Speaker, -
SLOWING DOWN IN THE MIDDLE OF THE FIRST QUARTER, AND IT'S FAIRLY APPARENT FROM THE DATA SINCE THAT THINGS HAVE PICKED BACK UP AGAIN I.MARCH WAS A GOOD...
|
| 00:46:01 |
Unidentified Speaker, -
I'LL INDICATE
|
| 00:46:03 |
Unidentified Speaker, -
TOMORROW, THREATS OF DEFLATION WHICH WERE A SIGNIFICANT CONCERN LAST YEAR BY ALL INDICATIONS, ARE NO LONGER AN ISSUE BEFORE US. BUT CLEARLY IT IS...
|
| 00:46:53 |
Unidentified Speaker, -
CONSOLIDATED UNDERLYING DOMESTIC COSTS IN THE UNITED STATES ARE UNIT LABOR COSTS. AND CLEARLY, THE
|
| 00:47:02 |
Unidentified Speaker, -
PRODUCTIVITY PATTERNS THAT WE'VE OBSERVED IN RECENT MONTHS ARE STILL QUITE IMPRESSIVE AND STILL NOT FULLY UNDERSTOOD BY US. WE KNOW WHAT'S HAPPENING,...
|
| 00:48:45 |
Unidentified Speaker, -
AGO I GUESS IT
|
| 00:48:46 |
Unidentified Speaker, -
WAS. AND THERE WAS SOME DIFFERENCE OF -- DIFFERENCES OF OPINION ON BOSSLE
|
| 00:48:52 |
Unidentified Speaker, -
|
| 00:48:53 |
Unidentified Speaker, -
2. SENATOR SARBANES AND I WERE IN EUROPE BACK IN AUGUST AND THAT WAS RAISED WHERE WE WENT. THOSE WERE THE ISSUES WE TALKED ABOUT. DO YOU FEEL REAL...
|
| 00:49:36 |
Unidentified Speaker, -
BEEN UNQUESTIONABLY TO THE BENEFIT OF THE UNITED STATES AND THE REST OF THE WORLD, AND IT'S IN OUR INTEREST TO SEE IF WE CAN CREATE A REGULATORY STRUCTURE...
|
| 00:51:42 |
Unidentified Speaker, -
HERE? >> I HAVE CONCERNS ABOUT BOSSLE BUT -- I WANT TO STATE EMPHATICALLY THAT WE WILL NOT DO ANYTHING THAT ERODES OR IMPAIRS THE VITALITY OF OUR EXISTING...
|
| 00:52:00 |
Unidentified Speaker, -
THAT'S ENORMOUSLY IMPORTANT AND ONE OF THE THINGS
|
| 00:52:02 |
Unidentified Speaker, -
THAT DISTINGUISHES OUR SYSTEM OF BANK SUPERVISION FROM OTHER
|
| 00:52:06 |
Unidentified Speaker, -
COUNTRIES. I THINK THAT'S ENORMOUSLY IMPORTANT FOR US TO MAINTAIN THAT. I THINK THE BIG UNKNOWN IN BOSSLE 2 RIGHT NOW IS EXACTLY WHAT THE IMPACT IS...
|
| 00:52:45 |
Unidentified Speaker, -
IN RISK-BASED
|
| 00:52:47 |
Unidentified Speaker, -
CAPITAL. I THINK THOUGH BOSSLE IS NOT A PROPER FIT FOR CREDIT UNIONS BECAUSE IT'S -- I DO THINK THE NEED TO GET AWAY FROM A
|
| 00:52:55 |
Unidentified Speaker, -
ONE
|
| 00:52:57 |
Unidentified Speaker, -
SIZE FITS ALL INTO A
|
| 00:53:00 |
Unidentified Speaker, -
RISK BASED SYSTEM IS GOOD POLICY. >> HAVE YOU STUDIED
|
| 00:53:03 |
Unidentified Speaker, -
THIS ISSUE? >> I
|
| 00:53:06 |
Unidentified Speaker, -
HAVE NOT. WE HAVE BEEN PLEASED TO BE AT THE TABLE TO DISCUSS WITH IT OUR FEDERAL COUNTERPARTS. >> SENATOR REID. >> THANK YOU VERY MUCH. CHAIRMAN
|
| 00:53:24 |
Unidentified Speaker, -
GREENSPAN, TAKING THE OPPORTUNITY TO ASK YOU A QUESTION ABOUT
|
| 00:53:28 |
Unidentified Speaker, -
THE OVERALL ECONOMY. IT SEEMS THAT PERSONAL WAGES INCREASED BY LESS THAN INFLATION IN 2003. AND THAT REAL WAGES FELL BY .3%. THIS IS IN CONTRAST TO...
|
| 00:53:41 |
Unidentified Speaker, -
STORIES WE ALL READ ABOUT
|
| 00:53:43 |
Unidentified Speaker, -
VERY HIGH COMPENSATION, NON-WAGE COMPENSATION FOR EXECUTIVES AND OTHER WEALTHIER INDIVIDUALS. ARE YOU SEEING AN ECONOMY THAT IS BECOMING BIFURCATED,...
|
| 00:54:36 |
Unidentified Speaker, -
SKILLS. I ADDRESSED THIS ISSUE IN AN EARLIER PRESENTATION. AND THE POINT I TRIED TO MAKE IS THAT WE SEEM TO BE EXHIBITING A MARKED CHANGE OVER THE...
|
| 00:57:18 |
Unidentified Speaker, -
DAUGHTER GOT A DEGREE THEY WOULD BE ALL SET. THEN YOU READ MORE AND MORE TAX RETURNS ARE PREPARED IN INDIA AND OTHER PLACES. SO I THINK IN A CLOSED...
|
| 00:58:55 |
Unidentified Speaker, -
WHERE PROCESSING HAS BEEN OUTSOURCED TO FOREIGN SERVICERS. AND THIS IS AN ISSUE WE HAVE FOCUSED A FAIR AMOUNT OF ATTENTION ON. IT'S ALSO AN ISSUE THAT...
|
| 00:59:40 |
Unidentified Speaker, -
ANOTHER COUNTRY IS NO DIFFERENT IN A WAY THAN ANY OF THE OTHER OUTSOURCING THAT A FINANCIAL INSTITUTION OR REGULAR COMPANY IS DOING. WHEN YOU'RE DEALING...
|
| 00:59:51 |
Unidentified Speaker, -
THE PUBLIC THE WAY BANKS ARE, THE FINANCIAL INSTITUTIONS MUST SATISFY THEMSELVESES
|
| 00:59:55 |
Unidentified Speaker, -
THAT WHOEVER THEY OUTSOURCE TO HAS THE CONTROLS AND THE
|
| 00:59:59 |
Unidentified Speaker, -
PROCEDURES THAT ARE NECESSARY IN ORDER TO PROPERLY DEAL WITH THE CUSTOMER RELATIONSHIP. SO THEREFORE, REGULATORS ARE GOING TO BE EXPECTED IN THE FUTURE,...
|
| 01:00:48 |
Unidentified Speaker, -
FACING. AND IN YOUR TESTIMONY YOU TALKED ABOUT PRESSURES SMALL BANKS
|
| 01:00:52 |
Unidentified Speaker, -
ARE FACING. WHAT CAN BE DONE TO HELP SMALL BANKS, BOTH THROUGH REGULATION OR STATUTE WHICH ARE CRITICAL TO THE FINANCIAL INSTITUTIONS AND HEALTH OF...
|
| 01:01:29 |
Unidentified Speaker, -
THAT WE CONTINUE TO SUPPORT THAT SYSTEM AS IT GOES FORWARD. AND I AM CONCERNED AS ALL REGULATORS ARE, THAT WE MAKE CERTAIN THAT THESE INSTITUTIONS...
|
| 01:03:02 |
Unidentified Speaker, -
UNDER $1 BILLION IN SIZE. AND THESE THRIFTS HAVE BEEN ABLE TO ACHIEVE IN EXCESS
|
| 01:03:08 |
Unidentified Speaker, -
OF $1.50 IN ASSETS OVER A LONG PERIOD OF TIME. IN EXCESS OF 10 QUARTERS. THEY ALL HAVE VERY INTERESTING SIMILARITIES. ONE IS THEY ARE WELL DIVERSIFIED....
|
| 01:04:22 |
Unidentified Speaker, -
ONES IN KENTUCKY ARE UNDER $1 BILLION. >> WE FIND THE SAME CHARACTERISTICS HOLD TRUE. >> OK. LET ME ASK ALL OF THE
|
| 01:04:30 |
Unidentified Speaker, -
REGULATORS HERE, CAN ANY OF YOU GIVE ME AN UPDATE ON THE STEPS FINANCIAL INSTITUTIONS ARE TAKING TO GUARD AGAINST
|
| 01:04:39 |
Unidentified Speaker, -
TERRORIST THREATS? CYBER, WHATEVER. NOBODY
|
| 01:04:46 |
Unidentified Speaker, -
WANTS TO ANSWER. >> I'LL ATTEMPT
|
| 01:04:48 |
Unidentified Speaker, -
THAT. I THINK THERE IS A JOINT EFFORT, SENATOR, AMONG ALL THE REGULATORS, TO MAKE SURE THAT EVERY INSURED INSTITUTION HAS IN PLACE POLICIES AND PROCEDURES...
|
| 01:05:08 |
Unidentified Speaker, -
BREAKDOWN BY TERRORISTS. I KNOW THE FDIC SPONSORED SOME SYMPOSIUMS AS RECENTLY AS LAST WEEK THAT WAS WITH ALL OF THE REGULATORS WHERE WE BRING BANK...
|
| 01:06:06 |
Unidentified Speaker, -
GILLERON. I'M FOCUSED ON THE REGULATORY REFORM LEGISLATION WE'RE DEVELOPING. AND WHAN OF THE ISSUES THERE RELATES
|
| 01:06:13 |
Unidentified Speaker, -
TO INDUSTRIAL LOAN BANKS. AND THE QUESTION IS CONCERNS HAVE BEEN RAISED ABOUT
|
| 01:06:18 |
Unidentified Speaker, -
THE FACT THAT OWNERS OF INDUSTRIAL LOAN BANKS ARE NOT REGULATED AS BANK HOLDING COMPANIES. SOME CRITICS CHARGED THAT INDUSTRIAL BANKS, THE DPOS TERS...
|
| 01:07:12 |
Unidentified Speaker, -
THE FDIC AND THE WILLINGNESS TO MAKE SURE THAT WE EXAMINE THOSE INSTITUTIONS FROM THE SAFETY STANDPOINT AS ANY BANK. FURTHERMORE, WE'RE NOT RESTRICTED...
|
| 01:08:07 |
Unidentified Speaker, -
THRIFTS. WE EXAMINE THEM IN THE SAME FASHION
|
| 01:08:10 |
Unidentified Speaker, -
AND WE HAVE THE SAME AUTHORITIES OVER THEM AS WE WOULD HAVE UNDER ANY HOLDING COMPANY SITUATION. OUR AUTHORITIES ARE COMPLETE. >> MR. LAVENDER. THANK...
|
| 01:08:40 |
Unidentified Speaker, -
SAME STANDARDS OF SAFETY AND SOUNDNESS. >> THANK YOU. AND MR. GREENSPAN, FOR YEARS INDUSTRIAL LOAN BANKS HAD AUTHORITY TO BASICALLY OFFER NOW ACCOUNTS...
|
| 01:09:03 |
Unidentified Speaker, -
INJURY TO DEPOSITOR, COMPETITORS OR THE DEPOSIT INSURANCE SYSTEM AS A RESULT OF THE WAY THIS INDUSTRIAL LOAN BANK SYSTEM OPERATES? >> I DON'T THINK THAT'S...
|
| 01:09:32 |
Unidentified Speaker, -
SOMETHING THAT -- PART OF ACTUALLY THE TESTIMONY I GAVE BEFORE THIS COMMITTEE IN
|
| 01:09:40 |
Unidentified Speaker, -
1998. AND IT RELATED TO THE
|
| 01:09:42 |
Unidentified Speaker, -
ISSUE OF WHETHER OR NOT WE SHOULD OPEN UP BANKING, THE PROHIBITION BETWEEN COMMERCE AND BANKING. AND THE GENERAL VIEW THAT FEDERAL RESERVE HAD AT THAT...
|
| 01:12:26 |
Unidentified Speaker, -
PROCESS RIGHT NOW OF PUTTING TOGETHER A REGULATORY RELIEF PACKAGE. AND WE HAVE HERE IN FRONT OF US VIRTUALLY ALL THE REGULATORS. I WOULD LIKE TO ASK...
|
| 01:13:13 |
Unidentified Speaker, -
LOT OF LAWS WE WONDER WHAT THEY ARE STILL ON THE BOOKS BECAUSE CHAIRMAN
|
| 01:13:18 |
Unidentified Speaker, -
GREENSPAN TALKED ABOUT ALL OF THEM ABOUT HOW FAR THE
|
| 01:13:22 |
Unidentified Speaker, -
FINANCIAL SERVICE
|
| 01:13:23 |
Unidentified Speaker, -
INDUSTRY'S MOVED IN THE LAST 10,
|
| 01:13:25 |
Unidentified Speaker, -
12 YEARS. OR THE LAST FIVE YEARS. SENATOR SARBANES. >> THANK YOU VERY MUCH, MR. CHAIRMAN. BEFORE I TURN TO THE PANEL I WANT TO COMMEND YOU FOR SCHEDULING...
|
| 01:13:52 |
Unidentified Speaker, -
BUT ONE IN A SERIES OF HEARINGS YOU HELD ADDRESSED TO MEETING THE COMMITTEE'S OVERSIGHT RESPONSIBILITY. I WANT TO THANK YOU FOR THAT FOCUS. I WANT...
|
| 01:14:53 |
Unidentified Speaker, -
FEDERAL RESERVE. CORRECT? >> THAT'S CORRECT. I WAS REFERRING
|
| 01:14:57 |
Unidentified Speaker, -
TO THE I.L.C.'S INABILITY TO
|
| 01:15:00 |
Unidentified Speaker, -
LOOK INTO THE PARENT
|
| 01:15:03 |
Unidentified Speaker, -
COMPANY. >> BUT YOU DON'T REVIEW ON A REGULAR BASIS THE HOLDING COMPANIES THAT HAVE I.L.C. IN THEM, DO YOU? >> WE DO NOT. >> DOES THE FED REVIEW THEM...
|
| 01:15:15 |
Unidentified Speaker, -
REGULAR BASIS, CHAIRMAN FRENSPAN? >> THE I.L.C. >> THE HOLDING COMPANIES. >> YES, WE DO. >> THAT'S WHAT I
|
| 01:15:26 |
Unidentified Speaker, -
|
| 01:15:32 |
Unidentified Speaker, -
THOUGHT.
|
| 01:15:34 |
Unidentified Speaker, -
LET ME ASK, I WANT TO GO TO THIS ISSUE OF
|
| 01:15:41 |
Unidentified Speaker, -
MONEY
|
| 01:15:42 |
Unidentified Speaker, -
|
| 01:15:43 |
Unidentified Speaker, -
LAUNDERING FIRST. AND HOW EFFECTIVE THE REGULATORS HAVE BEEN IN OVERSEEING AND GIVING
|
| 01:15:52 |
Unidentified Speaker, -
PROPER PRIORITY TO COMPLIANCE WITH THE BANK SECRECY ACT. ESPECIALLY THE RULES OF TITLE THREE OF THE PATRIOT ACT. OF COURSE, THIS IS DESIGNED TO COUNTER...
|
| 01:19:17 |
Unidentified Speaker, -
INTERNAL CONTROLS OVER ONE SEGMENT OF RIGS' BANKING OPERATIONS. AND IT INCREASINGLY HEAVY EMPHASIS BY THE O.C.C., ON TAKING CORRECTIVE ACTION. WE LAST...
|
| 01:20:21 |
Unidentified Speaker, -
TO COMBAT TERRORIST FINANCING. I DON'T KNOW WHAT MESSAGE THAT SENDS TO THE BANKS FRANKLY. >> IMPLEMENTATION OF THE PATRIOT ACT IS A MATTER OF HIGH...
|
| 01:20:53 |
Unidentified Speaker, -
SHELL BEBRACED AT THE HEARING ABOUT THE BANK SECRECY ACT CONCERNS. I YESTERDAY DELIVERED A LETTER TO THE CHAIRMAN ADDRESSING SOME OF THOSE ISSUES IN...
|
| 01:21:39 |
Unidentified Speaker, -
YOU. EARLIER YOU ASKED A QUESTION OF I THINK IT WAS CHAIRMAN GREENSPAN. AND HE GAVE A TWO-WORD ANSWER TO THAT QUESTION. AND THE WORDS THAT HE ANSWERED...
|
| 01:21:55 |
Unidentified Speaker, -
CHAIRMAN GREENSPAN PROBABLY SAID THE SAME WORDS TO A WOMAN NAMED ANDREA MITCHELL WHO IS BEING HONORED THIS SATURDAY EVENING ALONG WITH SOME OF THE OTHER...
|
| 01:22:14 |
Unidentified Speaker, -
AWARD AND I WANT EVERYBODY TO KNOW HE SAID I DO MORE THAN JUST TODAY. AND HE SAID IT TO A GOOD EFFECT AT LEAST ON ONE OTHER OCCASION. I KNOW YOU'RE...
|
| 01:23:03 |
Unidentified Speaker, -
AND MR. COMPTROLLER, GOOD TO SEE YOU TODAY. AND I WOULD LIKE TO ASK, I'M NOT GOING
|
| 01:23:10 |
Unidentified Speaker, -
TO ASK MR. POWELL
|
| 01:23:11 |
Unidentified Speaker, -
OR CHAIRMAN
|
| 01:23:13 |
Unidentified Speaker, -
GREENSPAN TO REFEREE THIS DISAGREEMENT BUT ASK FOR THEM TO SHARE THEIR THOUGHTS WITH US AS TO THE O.C.C. PREEMPTS THE ABILITY OF STATES TO HAVE THE KIND...
|
| 01:24:08 |
Unidentified Speaker, -
NOT UNDERCUT THE BANKING DUAL SYSTEM WHICH HAS BEEN SO CRITICAL AN ELEMENT IN THE DEVELOPMENT OF BANKING IN THE UNITED STATES AND CONTINUES TO DO SO....
|
| 01:25:12 |
Unidentified Speaker, -
CONTINUES TO BE STRONG
|
| 01:25:15 |
Unidentified Speaker, -
ABTIGHT IN THE MARKETPLACE FOR A STATE BANKING CHARTER. SO THAT TELLS ME THAT THE MARKET RECEIVES AND THERE ARE SOME BENEFITS TO HAVING A STATE BANKING...
|
| 01:26:47 |
Unidentified Speaker, -
HELD IN THE NATIONAL BANKING SYSTEM. AND THE DUAL BANKING SYSTEM HAS BEEN STABLE
|
| 01:26:54 |
Unidentified Speaker, -
FOR MANY YEARINGS. PREEMPTION IS SOMETHING THAT HAS BEEN AROUND
|
| 01:26:56 |
Unidentified Speaker, -
FOR AS LONG AS THE NATIONAL BANK SYSTEM HAS EXISTED. 140 YEARS. IT'S NOT A NEW CONCEPT. BUT THE NATIONAL BANK'S SHARE OF COMMERCIAL BANK ASSETS HAS...
|
| 01:27:48 |
Unidentified Speaker, -
WHERE IS NATIONAL CHARTERED INSTITUTIONS OR THEIR SUBSIDIARIES HAVE EITHER TURNED IN THEIR CHARTERS OR LICENSES, TO STATE REGULATORS OR PUT US ON...
|
| 01:29:43 |
Unidentified Speaker, -
BETWEEN BASIL ONE AND BASIL TWO ARE. I THAT
|
| 01:29:53 |
Unidentified Speaker, -
WE HAVE
|
| 01:29:54 |
Unidentified Speaker, -
HAD HEARINGS ON AND CONCEPTUALIZE, THOSE OF US FARTHER AWAY FROM THE MARKETS AND DON'T FULLY UNDERSTAND. MY QUESTION WILL GET ASKED, WHETHER WE...
|
| 01:30:55 |
Unidentified Speaker, -
AND THAT WAS ESSENTIALLY THE END ALL OF RISK-BASED CAPITAL. AND THE EXPERIENCE SINCE HAS BEEN THAT THOSE BUCKETS DON'T REALLY ACCURATELY REFLECT RISK...
|
| 01:33:55 |
Unidentified Speaker, -
FOREIGN BANKS AND SECOND, REDUCING THE LEVERAGE RATIO WOULD UNDERMINE OUR WHOLE SYSTEM OF PROMPT CORRECTIVE ACTION, CHST THE FOUNDATION
|
| 01:34:04 |
Unidentified Speaker, -
STONE OF OUR SYSTEM OF SUPERVISION. >> I WOULD LOVE TO HEAR OTHERS COMMENT ON THIS, BUT DOESN'T THAT STRIKE AT THE HEART OF THE VALUE OF RISK-BASED...
|
| 01:34:31 |
Unidentified Speaker, -
INSTITUTION? >> I THINK THERE MAY BE SOMETHING OF A DISCONNECT THERE, BUT THE LEVERAGE RATIO AND PROMPT CORRECTIVE ACTION FOR MORE THAN 10 YEARS HAVE...
|
| 01:34:53 |
Unidentified Speaker, -
IN MANY OF THE OTHER -- MOST OF THE OTHER BASIL COUNTRIES. AND I THINK WE NEED TO REACH AN APPROPRIATE ACOME NATION WHERE WE TRY TO MAKE OUR BASING...
|
| 01:35:39 |
Unidentified Speaker, -
GOT WRONG. I THINK WE ALL AGREE THOSE MODELS ARE A MARKED
|
| 01:35:43 |
Unidentified Speaker, -
IMPROVEMENT, BUT THEY'RE NOT AN END TO THEMSELVES THAT'S THE REASON WE NEED A MINIMUM REGULATORY CAPITAL. >> I THINK THE SENATOR HAS RAISED A FUNDAMENTAL...
|
| 01:36:15 |
Unidentified Speaker, -
SYSTEM. AT THE END OF THE DAY, THEY ARE MUTUALLY EXCLUSIVE. AND I THINK WHAT THE PROBLEM IS , WHAT THE SENATOR IS IMPLYING IS THAT WE NEAR A TRANSITION...
|
| 01:38:17 |
Unidentified Speaker, -
CREDIBILITY OF THE OTHER BECAUSE IT SETS A DIFFERENT KIND OF FLOOR. I WILL SAY, THOUGH, THAT THE COMPLEXITY OF THE RISK-BASED MODELS WHICH I'M FULLY...
|
| 01:39:27 |
Unidentified Speaker, -
RENEW VISAS FOR 16 SAUDIS HERE ON DIPLOMAT COVER BUT IN ACTUALITY WORKED IN A VIRGINIA SCHOOL THAT'S TEACHING TERRORISM. SIMILARLY, IN MAY 2003, AMERICAN...
|
| 01:40:57 |
Unidentified Speaker, -
E.O.C.C., WE COULD -- >> I'M NOT INTERESTED IN THE SPECIFIC NAMES OF THE CASE. I'M INTERESTED IN WHETHER RIGGS FILED THE REPORTS AND WHETHER ANY OF THESE...
|
| 01:41:20 |
Unidentified Speaker, -
REGULATION. THERE HAVE BEEN TWO REASONS GIVEN FOR HEDGE FUND REGULATION. AND THAT IS, ONE IS TO PROTECT INVESTOR. I'M NOT TERFULLY SYMPATHETIC TO...
|
| 01:42:51 |
Unidentified Speaker, -
STABILITY AND LIQUIDTY OF THE OVERALL SYSTEM. AND THEY DOP NOT POSE ANY SYSTEMIC RISKS, LARGELY BECAUSE THE PEOPLE WHO LEND THEM MONEY, THEIR COUNTERPARTIES...
|
| 01:44:33 |
Unidentified Speaker, -
DISCIPLINE EXERTED BY COUNTERPARTIES IS ENORMOUSLY IMPORTANT HERE. I THINK ONE OF THE FAILINGS THAT WE SAW IN LONG-TERM CAPITAL MANAGEMENT WAS THAT
|
| 01:44:43 |
Unidentified Speaker, -
COUNTERPARTIES WERE NOT EXERCISING THEIR KIND OF DISCIPLINE THAT
|
| 01:44:47 |
Unidentified Speaker, -
WE WOULD EXPECT LENDING BANKS WERE WAIVING
|
| 01:44:52 |
Unidentified Speaker, -
ACCESS TO INFORMATION WHEN THE BORROWER REFUSED TO GIVE THEM THAT INFORMATION. AND THAT IS SOMETHING THAT CAN BE ADDRESSED THROUGH THE NORMAL BANK...
|
| 01:45:29 |
Unidentified Speaker, -
JOB NUMBERS, RETAIL SALES, MANUFACTURING, ETC. IT SEEMS WHEN THE MARKETS HEAR THE GOOD NEWS THEY SORT OF HAVE A BY FORKATED REACTION. ON THE ONE HAND,...
|
| 01:47:11 |
Unidentified Speaker, -
VERY SIGNIFICANT PROBLEM WHICH CONFRONTS US IN THE NEXT DECADE. AND THAT OCCURS BECAUS CONFRONTS US IN THE NEXT DECADE. AND THAT OCCURS BECAUSE OF THE...
|
| 01:49:27 |
Unidentified Speaker, -
OF THE IMMEDIATE YEAR TO YEAR DEFICITS WE HAVE EVEN NOW BEFORE THE BABY BOOMERS RETIRES, THAT THEY ARE GREATLY WORRIED THAT THE FED WILL HAVE TO RAISE...
|
| 01:50:05 |
Unidentified Speaker, -
YEAR HAVE BEEN PRETTY MUCH -- OR ARE NO LONGER AN ISSUE. THERE CLEARLY IS AN EMERGENCE OF VIEWS AS TO HOW THIS WILL ALL BALANCE OUT. I WILL TRY TO ADDRESS...
|
| 01:51:19 |
Unidentified Speaker, -
SITUATION. >>
|
| 01:51:20 |
Unidentified Speaker, -
CAN YOU ENSURE
|
| 01:51:21 |
Unidentified Speaker, -
BANK COMPLIANCE TO THE BANK SECRECY ACT? >> I DO, SENATOR. AND I SHOULD SAY THAT WE HAVE ALL LEARNED A LOT IN RECENT YEARS ABOUT THE IMPORTANCE OF MAKING...
|
| 01:51:39 |
Unidentified Speaker, -
|
| 01:51:44 |
Unidentified Speaker, -
IS. IS ISSUE, FOR EXAMPLE, OF FRANS ACTION TESTING IS ONE THAT WE'VE BEEN GIVING THOUGHT TO. WE DON'T, AS A REGULAR MATTER, DO EXTENSIVE TRANSACTION...
|
| 01:53:10 |
Unidentified Speaker, -
THE BANK ENGAGES IN? DO EXAMINERS EVER
|
| 01:53:14 |
Unidentified Speaker, -
LOOK AT INDIVIDUAL TRANSACTIONS TO GAUGE IF COMPLIANCE WITH THE BANK SECRECY ACT. DO YOU WANT TO DO THAT FOR THE RECORD? >> YES, MR. CHAIRMAN THAT...
|
| 01:53:43 |
Unidentified Speaker, -
|
| 01:53:51 |
Unidentified Speaker, -
|
| 01:53:55 |
Unidentified Speaker, -
OK. IS THERE ANYONE YOU'RE CURRENTLY WATCH THAVING SIMILAR PROBLEMS TO RIGGS? OUT OF OUR YOUR WHOLE BANKING SYSTEM, THERE'S BOUND TO BE SOME. >> I...
|
| 01:54:17 |
Unidentified Speaker, -
COITCATHED TO. >> WELL, THEY DID IT OVERSEAS, AS WELL. THAT WAS A SPECIALTY THEY HAD DEVELOPED. AND I THINK WE ALL RECOGNIZED THAT THAT
|
| 01:54:25 |
Unidentified Speaker, -
PRODUCT LINE, IF YOU WILL, PRESENTS
|
| 01:54:28 |
Unidentified Speaker, -
CONSIDERABLY HIGHER RISKS THAN OTHER
|
| 01:54:30 |
Unidentified Speaker, -
TYPES OF BANKING RELATIONSHIP. >> BUT AS FAR AS OTHER BANKS
|
| 01:54:36 |
Unidentified Speaker, -
ARE CONCERNED, I KNOW THEY'RE HERE IN WASHINGTON AND, YOU KNOW,
|
| 01:54:39 |
Unidentified Speaker, -
THEY WENT AFTER A LOT OF THE DIPLOMATIC BUSINESS AND SO FORTH. AND MAYBE THE DIPLOMATS BANK, AMONG OTHER THINGS. BUT THERE ARE OTHER BANKS IN THIS COUNTRY...
|
| 01:54:55 |
Unidentified Speaker, -
AND AS I SAY, WE TAKE A RISK-BASED APPROACH. WE LOOK AT A NUMBER OF DIFFERENT AT TUTES THAT -- ATTRIBUTES THAT A BANK PRESENTS. THEY LOOK AT LOCATION
|
| 01:55:14 |
Unidentified Speaker, -
AND THE NUMBER OF SARS THAT ARE FILED AND SO ON. ALL THAT GETS FACTORED INTO -- >> HAS WORD GONE OUT, THOUGH THAT YOUR EXAMINERS ARE -- THAT IT'S NOT...
|
| 01:55:46 |
Unidentified Speaker, -
RESPECT TO TRAINING AND INSENT VISING OF OUR EXAMINERS, AS WELL AS THE BANKS THAT WE SPRF. >> POWELL, HOW ABOUT YOU? >> IT'S A HIGH PRIORITY FOR US
|
| 01:55:58 |
Unidentified Speaker, -
ALSO. >> DO YOU HAVE TROUBLE WITH BANKS SIMILAR
|
| 01:56:01 |
Unidentified Speaker, -
TO THE RIGGS LIKE THAT, DEALING WITH THE BANK
|
| 01:56:03 |
Unidentified Speaker, -
SECRECY ACT? >> I'M SURE WE DO. WE HAVE SOMETHING LIKE -- >> COULD YOU SUBMIT SOMETHING TO THE COMMITTEE? >> BE HAPPY TO. I THINK WE'VE HAD 24 ENFORCEMENT...
|
| 01:56:15 |
Unidentified Speaker, -
BANKS. I KNOW A LOT OF THEM ARE VARIED
|
| 01:56:17 |
Unidentified Speaker, -
ALL OVER THE COUNTRY. >>
|
| 01:56:19 |
Unidentified Speaker, -
A LOT OF THRIFTS. >> AND SAVINGS BANKS. >> WE DON'T HAVE ANY THAT
|
| 01:56:24 |
Unidentified Speaker, -
WE KNOW OF THAT ARE OF THE
|
| 01:56:26 |
Unidentified Speaker, -
NATURE OF THE RIGGS
|
| 01:56:28 |
Unidentified Speaker, -
SITUATION. AND WE DO SEE A PROBLEM FOR SOME OF THE
|
| 01:56:34 |
Unidentified Speaker, -
SMALLER INSTITUTIONS IN COMPLYING, BECAUSE THE LAWS
|
| 01:56:41 |
Unidentified Speaker, -
REQUIRE
|
| 01:56:42 |
Unidentified Speaker, -
SPECIAL TRAINING FOR THEIR
|
| 01:56:44 |
Unidentified Speaker, -
EMPLOYEES AND SPECIAL SURVEILLANCE ON THE PART OF THE ORGANIZATIONS SO THAT WE ARE HANDLING ALL THESE ORGANIZATIONS. >> HOW ABOUT THE CREDIT UNIONS?...
|
| 01:57:21 |
Unidentified Speaker, -
PRETTY GOOD SIZE. >> ANOTHER POINT I WANT TO MAKE
|
| 01:57:23 |
Unidentified Speaker, -
IS THAT WE TAKE IT SERIOUSLY AND WE TAKE IT SERIOUSLY TO THE POINT, DURING THE SIX YEARS I'VE BEEN ON THE BOARD, THE SINGLE
|
| 01:57:32 |
Unidentified Speaker, -
LARGEST CONSERVATORSHIP WE'VE DONE OF ANY CREDIT UNION WAS IN YOUR HOME STATE AND IT WAS FOR BANK SECRECY ACT VIOLATIONS. WE DO TAKE IT
|
| 01:57:42 |
Unidentified Speaker, -
SERIOUSLY. >> THANK YOU FOR YOUR INDULGENCE. DO YOU WANT TO GET BACK INTO THIS, TOO? >> I'M VERY MUCH CONCERNED ABOUT THIS ISSUE. I DON'T THINK IT'S...
|
| 01:58:06 |
Unidentified Speaker, -
IT. THERE WERE ANNUAL BANK EXAM REPORTS OUTLINING PROBLEMS
|
| 01:58:10 |
Unidentified Speaker, -
IN RIGGS' PROCEDURES TO GUARD AGAINST MONEY LAUNDERING. AND IT JUST SEEMED TO GO ON AND ON. AND FINALLY, I GUESS THE F.B.I. WAS IN THERE INVESTIGATING....
|
| 02:01:08 |
Unidentified Speaker, -
ACTIVITYS? >> AS I SAY, THERE WAS ESCALATING CONCERN OVER A PERIOD OF SEVERAL YEARS, AND CULMINATED IN THE ISSUANCE OF A CEASE AND DESIST ORDER LAST...
|
| 02:01:33 |
Unidentified Speaker, -
CAN REGULATE APPROPRIATELY IN THIS AREA. I THINK IN ORDER TO BE EFFECTIVE IN THIS AREA,
|
| 02:01:44 |
Unidentified Speaker, -
YOU MUST UNDERSTAND BANK PROCEDURES, BANK CONTROLS AND BANK SYSTEMS. AND THEREFORE IF THE BANK REGULATORS HAVE THE BEST STAFF TO DO THAT WITH. ...
|
| 02:02:48 |
Unidentified Speaker, -
WHAT TO LOOK FOR. YOU HAVE THE BEST PEOPLE TO DO IT HERE. >> I UNDERSTAND THAT, BUT DO WE HAVE THAT WIN DEMOW TIME AGAINST
|
| 02:02:56 |
Unidentified Speaker, -
THE WAR AGAINST
|
| 02:02:58 |
Unidentified Speaker, -
TERRORISM FINANCING? >> IF YOU WERE TO CREATE A NEW AGENT CIRCUMSTANCE IT WOULD BE CREATING A -- >> NO ON-CREATING A HIATUS OF TIME -- >> NO ONE SUGGESTED...
|
| 02:03:12 |
Unidentified Speaker, -
FROM. >> DIDN'T THE INSPECTOR GENERAL CRITICIZE THE O.T.S. FOR INSUFFICIENT FOLLOW UP ON BANK SECRECY ACT PROBLEMS? >>
|
| 02:03:20 |
Unidentified Speaker, -
WELL, THAT WAS TRUE SENATOR, AND I WOULD SAY THAT WE APPRECIATED THAT REVIEW. SO THAT IT TURNS US
|
| 02:03:29 |
Unidentified Speaker, -
|
| 02:03:30 |
Unidentified Speaker, -
TO A
|
| 02:03:31 |
Unidentified Speaker, -
PROBLEM I MENTIONED EARLIER, AND THAT WAS THE CRITICISM MADE OF
|
| 02:03:34 |
Unidentified Speaker, -
US WAS THAT WE HAD GIVEN SOME SMALLER INSTITUTIONS MORE THAN ONE EXAMINATION PERIOD TO CORRECT THEIR
|
| 02:03:42 |
Unidentified Speaker, -
PROBLEM. FOR INSTANCE, THE ACT REQUIRES AN INSTITUTION TO HAVE A SUFFICIENT TRAINING PROGRAM. IT REQUIRES THE INSTITUTION TO HAVE SIGNOFFS. IN NO INSTANCE...
|
| 02:04:41 |
Unidentified Speaker, -
GO WITH THEM CAREFULLY WHAT EACH OF THEM ARE EXACTLY DOING, WHERE THEY'VE FALLEN DOWN ON THE JOB AND WHAT MORE NEEDS TO BE DONE. THIS IS AN IMPORTANT...
|
| 02:05:05 |
Unidentified Speaker, -
SENATOR SARBANES WANTED TO COMMENT. GREENSPAN, I'M SORRY. SARBANES. HE WAS MY CHAIRMAN. I DON'T WANT HIM TO BE THE CHAIRMAN IN THE FUTURE. IF HE IS HE...
|
| 02:05:27 |
Unidentified Speaker, -
TO ASSOCIATE MYSELF WITH SOME OF THE REMARKS OF MY COLLEAGUES. TO BE SURE, WE DON'T HAVE TIME, BUT THE QUESTION IS BRINGING IN A THIRD PARTY AT THIS STAGE...
|
| 02:05:46 |
Unidentified Speaker, -
SLI THAT ENFORCING BANK SECRECY ACTS INVARIABLY REQUIRE THAT YOU IN THE NORMAL EXAMINATION PROCESS. SENSE ANOMALYS IN THE SYSTEM, THINGS THAT LOOK JUST...
|
| 02:07:02 |
Unidentified Speaker, -
HAD A RISK-BASED APPROACH, IN REFERENCE TO THE CHAIRMAN'S COMMENTS, RIGGS BANK WAS HIGH RISK BECAUSE OF ITS LOCATION. AND YET IT'S MY UNDERSTANDING
|
| 02:07:15 |
Unidentified Speaker, -
THAT THERE WERE TWO CHECKS ON RIGGS. ONE
|
| 02:07:17 |
Unidentified Speaker, -
IN RELATION TO BANK
|
| 02:07:18 |
Unidentified Speaker, -
SECRECY, TPWHUN 2000 AND THEN ONE IN 2003. AND MOST OF THE BAD STUFF OCCURRED BETWEEN. IS IT THAT YOU'RE UNDERSTAFFED? I MEAN, WHY WITH A PARTICULARLY...
|
| 02:08:06 |
Unidentified Speaker, -
WISH THAT WE HAD BEEN TOUGHER
|
| 02:08:11 |
Unidentified Speaker, -
EARLIER. IT WAS NOT AN
|
| 02:08:16 |
Unidentified Speaker, -
ISSUE THAT COMPLIANCE WENT UNNOTICED. ATTENTION TO FOCUSED INITIALLY ON CONTROL SYSTEMS AND TRAINING. AND THAT GRADUALLY GOT ESCALATED OVER THAT PERIOD...
|
| 02:08:53 |
Unidentified Speaker, -
ENOUGH. >> COULD YOU CHECK THAT AND GET BACK TO US? >> DID YOUR EXAMINERS CALL IN THE F.B.I. OR DID THE F.B.I. CALL IN YOUR EXAMINERS? IN OTHER...
|
| 02:09:07 |
Unidentified Speaker, -
EXAMINING BECAUSE OF POSSIBLE VIOLATIONS OF THE BANK SECRECY ACT. >> I CAN'T TELL YOU
|
| 02:09:15 |
Unidentified Speaker, -
DEFINITIVETY. --
|
| 02:09:17 |
Unidentified Speaker, -
DEFINITIVELY. >> I THINK THAT'S IMPORTANT. I WANT TO MOVE TO DEPOSIT INSURANCE. SENATOR JOHNSON IS NOT HERE RIGHT NOW, BUT HE MADE PART OF THAT HIS OPENING...
|
| 02:09:33 |
Unidentified Speaker, -
TREASURY TO DEVELOP A CONSENSUS DEPOSIT INSURANCE REFORM PROPOSAL. I THOUGHT THE PROPOSAL
|
| 02:09:40 |
Unidentified Speaker, -
THAT WAS PRODUCED WOULD PROVIDE MEANINGFUL COMPREHENSIVE REFORM DO. YOU STILL SUPPORT THAT PROPOSAL, CHAIRMAN GREEN SNAN >> WE DO, MR. CHAIRMAN. >>...
|
| 02:10:09 |
Unidentified Speaker, -
GROWN
|
| 02:10:10 |
Unidentified Speaker, -
HEALTHIER AND BETTER ABLE TO
|
| 02:10:11 |
Unidentified Speaker, -
OPERATE IN A SAFE,
|
| 02:10:12 |
Unidentified Speaker, -
SOUND
|
| 02:10:13 |
Unidentified Speaker, -
FASHION. SHOULD WE
|
| 02:10:14 |
Unidentified Speaker, -
BE FINDFUL OF CREATING INAPPROPRIATE INCENTIVES AND DISINCENTIVES IN DEPOSIT INSURANCE REFORM LEGISLATION. IN OTHER WORDS, ONE OF
|
| 02:10:24 |
Unidentified Speaker, -
THE STATEMENTS AROUND HAS BEEN THAT IF THE REFORM PACKAGE PASSED, IT WOULD INCREASE BASIC COVERAGE AS WELL AS COVERAGE FOR RETIREMENT ACCOUNTS TO...
|
| 02:11:32 |
Unidentified Speaker, -
CHAIRMAN, A COUPLE OF
|
| 02:11:33 |
Unidentified Speaker, -
COMMENT. I WAS IN THE INDUSTRY ON THE OTHER SIDE. >> SO YOU KNOW. >> AND IN AN INSTITUTION THAT ALMOST FAILED. A COUPLE OF COMMENTS. I CANNOT IMAGINE...
|
| 02:11:52 |
Unidentified Speaker, -
COVERAGE INCREASED. MOST C.E.O.'S HAVE
|
| 02:11:57 |
Unidentified Speaker, -
A VESTED INTEREST IN AN INSTITUTION IN FORM OF OWNERSHIP AND
|
| 02:12:01 |
Unidentified Speaker, -
REPUTATION. IT WOULD BE COMMITTING SUICIDE -- >> BUT THE INSURANCE IS REALLY ASSUMING PART OF THE RISK, IS IT (music) >> WELL, IT'S ASSUMING PART OF...
|
| 02:12:26 |
Unidentified Speaker, -
BELIEVE IT SHOULD BE
|
| 02:12:30 |
Unidentified Speaker, -
INDEXED. >> THE CHAIRMAN PUT A QUESTION EARLIER ABOUT THE PROPOSAL THAT WAS -- >> THAT WAS NOT IN
|
| 02:12:36 |
Unidentified Speaker, -
THE
|
| 02:12:37 |
Unidentified Speaker, -
PROPOSAL. >> AND YOU ALL SAID YOU WERE FOR THAT PROPOSAL AND NOW YOU'RE TELLING US THAT YOU DIFFER ON AN IMPORTANT ASPECT OF THE PROPOSAL. >> WE DID...
|
| 02:12:52 |
Unidentified Speaker, -
OR PROSPECTIVELY. >> I THINK IT WAS SOLID ON THE COVERAGE ISSUE.
|
| 02:12:56 |
Unidentified Speaker, -
I COULD BE WRONG. >>
|
| 02:12:58 |
Unidentified Speaker, -
IT WASN'T SOLID AT THE TABLE. >> WE WANT IT TO BE INDEXED. >> FDIC? >>
|
| 02:13:07 |
Unidentified Speaker, -
YES. I THINK IT'S UNIMPORTANT THAT THIS PARTICULAR PART OF REFORM GETS AN ENORMOUS, AND I'M NOT
|
| 02:13:15 |
Unidentified Speaker, -
SAYING IT'S NOT IMPORTANT, BUT IT GETS AN ENORMOUS PLAY WHEN OTHER PARTS OF DEPOSIT
|
| 02:13:20 |
Unidentified Speaker, -
INSURANCE REFORM IN MY VIEW ARE MORE
|
| 02:13:24 |
Unidentified Speaker, -
|
| 02:13:26 |
Unidentified Speaker, -
CRITICAL THAT WE CONSERVE THE INDUSTRY
|
| 02:13:28 |
Unidentified Speaker, -
AND THAT IT BE -- THAT THOSE COMPONENTS OF DEPOSIT INSURANCE REFORM BE PASSED. I THINK IT'S PAST TIME THAT WE EITHER FOCUS ON THOSE ISSUES THAT SENATOR...
|
| 02:14:06 |
Unidentified Speaker, -
RESILIENT OF THE FINANCIAL SYSTEM ALTHOUGH WITHIN THE CONTEXT OF BASIL TWO. I WOULD LIKE TO FOCUS MY QUESTIONS BRIEFLY ON THE WHITE PAPER CO-TO THE WHICH...
|
| 02:16:00 |
Unidentified Speaker, -
ACTIVITIES. AND RECOVERY AND RESUMPTION OBJECTIVES. AS FAR AS -- AND
|
| 02:16:06 |
Unidentified Speaker, -
OTHER CRITERIA AS WELL. WITH RESPECT TO PROGRESS AT
|
| 02:16:13 |
Unidentified Speaker, -
NATIONAL BANKS, ALL OF OUR LARGE NATIONAL BANKS THAT ARE COVERED BY THE PAPER HAVE EITHER ALREADY SATISFIED THOSE REQUIREMENTS OR ARE MAKING SUBSTANTIAL...
|
| 02:16:56 |
Unidentified Speaker, -
CLEARLY THOSE OF US WHO ARE INVOLVED
|
| 02:16:58 |
Unidentified Speaker, -
IN THE PAYMENT SYSTEMS, SPECIFICALLY THE FEDERAL RESERVE BANKS, HAVE BEEN ENGAGED IN AN EXTRAORDINARILY INTENSIVE ENDEAVOR TO MAKE SURE THAT WE INSULATE...
|
| 02:18:48 |
Unidentified Speaker, -
NATURE OF THE RECOVERY. NOT THE NEXT
|
| 02:18:51 |
Unidentified Speaker, -
SIX MONTHS BUT NEXT 18, YEAR OR TWO. I WANT TO QUOTE YOU AN EDITORIAL FROM THE "FINANCIAL TIMES" HARDLY A LIBERAL OR DEMOCRATIC MOUTHPIECE. THEY SAY...
|
| 02:20:44 |
Unidentified Speaker, -
FUTURE. I THINK IT'S PROBABLY NOT VERY FRUITFUL TO TALK ABOUT PROGRAMS OR WHAT WE'RE GOING TO DO UNTIL WE GET A BUDGET PROCESS IN PLACE IN DISCRETIONARY...
|
| 02:21:28 |
Unidentified Speaker, -
FIND THAT WE WILL NOT BE ABLE TO MAINTAIN THE DEGREE OF DISCIPLINE, WHICH
|
| 02:21:33 |
Unidentified Speaker, -
IS GOING TO BE NECESSARY TO ADDRESS A VERY CIG CAPTAIN PROBLEM. >> THANK YOU, MR. CHAIRMAN. >> SENATOR SARBANES? >> THANK YOU, MR. CHAIRMAN. MR. POWELL,...
|
| 02:21:58 |
Unidentified Speaker, -
WHY DOES THE FDIC CONTINUE TO
|
| 02:22:00 |
Unidentified Speaker, -
ALLOW BANKS THAT IT
|
| 02:22:01 |
Unidentified Speaker, -
SUPERVISES TO ENGAGE IN PAYDAY LIND LENDING PRACTICE WHENCE THE OTHER REGULATORY AGENCIES STRONGLY DISCOURAGE PARTNERSHIPS BETWEEN PAYDAY LENDERS AND...
|
| 02:22:52 |
Unidentified Speaker, -
MORE HARSH AS IT RELATING TO CAPITAL APPLICATION PRORK SEED DURE AND POLICIES, TO DISCRIMINATION TORQUE FAIRNESS, TO ANYTHING THAT MIGHT BE ILLEGAL...
|
| 02:23:27 |
Unidentified Speaker, -
BILLION A YEAR. >> WE HAVE NOT -- >> I MEAN,
|
| 02:23:30 |
Unidentified Speaker, -
WHAT ARE YOU DOING ABOUT RALOVERS? WHAT ARE YOU RULES ON THAT? >> WE HAVE STRINGENT GUIDELINES AS IT RELATES TO ROLLOVER. WE LOOK FOR VIOLATIONS. WE...
|
| 02:23:49 |
Unidentified Speaker, -
ON THE NUMBER OF LOANS
|
| 02:23:51 |
Unidentified Speaker, -
THAT -- PAYDAY LOANS THAT CAN
|
| 02:23:55 |
Unidentified Speaker, -
BE MADE TO A SAME BORROW NER THE SAME YEAR. >> I CANNOT ANSWER THAT -- >> DO YOU HAVE A RULE ON THAT ISSUE? >> I CANNOT ANSWER THAT. >> EXCUSE ME, COULD...
|
| 02:24:09 |
Unidentified Speaker, -
FURNISH THAT? >> PAYDAY LEARNEDS ARE NOT UNIQUE TO THE FDIC IN THAT UNDER THE SHARED NATIONAL CREDITS, PAYDAY LENDERS ARE PART
|
| 02:24:20 |
Unidentified Speaker, -
OF THE SHARED NATIONAL
|
| 02:24:21 |
Unidentified Speaker, -
CREDITS. THEY HAVE -- AND
|
| 02:24:25 |
Unidentified Speaker, -
WE PARTICIPATE
|
| 02:24:29 |
Unidentified Speaker, -
IN-AND-CREDITS IN TERMS OF O.C.C. AND FEDERAL
|
| 02:24:32 |
Unidentified Speaker, -
RESERVE. AND PAYDAY LENDERS ARE NOT UNIQUE AS IT RELATES SPECIFICALLY TO FDIC. >> OF THE 11 SUPERVISED BANKS, PARTNERING WITH PAYDAY LENDER, HOW MANY...
|
| 02:25:01 |
Unidentified Speaker, -
11 HAS BEEN EXAMINED -- >> I
|
| 02:25:05 |
Unidentified Speaker, -
CAN'T
|
| 02:25:07 |
Unidentified Speaker, -
SPECIFICALLY THEY'VE EXAMINED EVERY YEAR TO A POINT BUT THEY'RE EXAMINED ON A REGULAR
|
| 02:25:13 |
Unidentified Speaker, -
BASIS. ILLS JUST PASS A NOTE -- >> APART FROM THE
|
| 02:25:17 |
Unidentified Speaker, -
EXAMINING, WHAT'S THE
|
| 02:25:19 |
Unidentified Speaker, -
RATIONAL FOR ALL -- ALL THE
|
| 02:25:21 |
Unidentified Speaker, -
EER REGULATORS DON'T THINK THIS PRACTICE SHOULD TAKE PLACE. YOU'RE THE ONLY ONE AT THE TABLE WHO THINKS IT TOUTH GO
|
| 02:25:28 |
Unidentified Speaker, -
ON. WHAT'S YOUR RATIONAL TO SUPPORT YOUR TAKING AN ODD MAN OUT POSITION ON THIS IMPORTANT ISSUE? >> I THINK THE RAG NEAL IS
|
| 02:25:37 |
Unidentified Speaker, -
THAT THEY -- RATIONALE IS THAT THEY'RE MEETING IN THE COMMUNITY THAT THE MARKETPLACE HAS SAID IS THERE. AND WE'RE MAKING SURE THERE'S NO SAFETY AND...
|
| 02:25:57 |
Unidentified Speaker, -
THE -- THAT IS TAKING PLACE. THEY'RE COMING IN, TRYING TO USE A FEDERAL CHARTER IN ORDER TO GET AROUND STATE LAW WHICH IS CONTROL THIS PRACTICE, ISN'T...
|
| 02:26:14 |
Unidentified Speaker, -
ENACT LAWS TO GUARD THEIR PEOPLE FROM THESE PAYDAY LENDING PRACTICES. THEN THEY GO AND RENT A FEDERAL CHARTER UNDER THE SUPERVISION OF FEDERAL REGULATORY...
|
| 02:26:29 |
Unidentified Speaker, -
LIMITATIONS. ISN'T THAT ZPHRECT >> IN TENNESSEE, THE PAYDAY LENDERS ARE THE ONLY LICENSED
|
| 02:26:35 |
Unidentified Speaker, -
ENTITY THAT WE REGULATE -- >> SOME STATES PROHIBIT THEM. >> BANKS CONTINUE TO EXPRESS AN INTEREST IN THAT, THEY WILL FACILITATE SOME OF OUR PAYDAY LENDERS...
|
| 02:26:53 |
Unidentified Speaker, -
MY TIME IS RUNNING. I WANT TO PUT ONE MORE QUESTION. >> MR. CHAIRMAN, PARDON ME. I HAVEN'T ANSWERED THE QUESTION.
|
| 02:27:03 |
Unidentified Speaker, -
60-DAY MANDATORY CHARGE ON
|
| 02:27:07 |
Unidentified Speaker, -
ROLLOVERS. >>
|
| 02:27:14 |
Unidentified Speaker, -
|
| 02:27:18 |
Unidentified Speaker, -
SINCE 1992, TOTAL ASSETS IN THE BANKING SYSTEM HAVE DOUBLE FROM $4.5 TRILLION TO $9 TRILLION. FOX NEWS SITS HAVE GROWN TO ALMOST $6 TRILLION. OVER THAT...
|
| 02:27:40 |
Unidentified Speaker, -
HELD HAVE INCREASED BY 460%. THE ISSUE, I GUESS, IS BETTER PUT IF WE SAY IN 1992, THE FIVE LARGEST BANKS HAD 12% OF THE TOTAL ASSETS OF THE BANKING SYSTEM....
|
| 02:28:47 |
Unidentified Speaker, -
INSTITUTIONS OF GROWING SIZE. ON THE COMPETITIVE SIDE, THE NUMBERS THAT YOU'RE LOOING AT, I THINK REFLECT/NATIONWIDE CONCENTRATION LEVELS. AND...
|
| 02:31:21 |
Unidentified Speaker, -
AS SMALL BANK AGAINST A MAJOR BANK TO COMPETE ON RATES IS NOT ONE THAT IS SUCCESSFUL VERY OFTEN. AND THEREFORE, THERE'S DEFINITELY AN ARENA TO SERVICE...
|
| 02:32:23 |
Unidentified Speaker, -
TREND. >> IF THE CONSOLIDATION WERE TO CONTINUE AT THE SAME RATE THAT IT'S BEEN TAKING PLACE, AND IF THE TOTAL AMOUNT OF ASSETS IN THE SYSTEM WERE TO...
|
| 02:32:41 |
Unidentified Speaker, -
65% OF THE TOTAL ASSETS OF THE SYSTEM. NOW WOULD THAT LEVEL OF CONCENTRATION BE A
|
| 02:32:48 |
Unidentified Speaker, -
MATTER OF CONCERN? >> AS A STATE REGULATOR, I'M CONCERNED ABOUT THE LEVEL OF CONCENTRATION. I AGREE THE BANK DOSS A GREAT JOB. FROM A STANDPOINT OF...
|
| 02:33:16 |
Unidentified Speaker, -
TO COME TO THE POINT OF SUPERVISION AND EXAMINATION. AS A STATE REGULATOR, I'M CONCERNED MY FEDERAL COUNTERPARTS HAVE THE CAPACITY, THE STAFF, THE BUDGET...
|
| 02:34:19 |
Unidentified Speaker, -
CHAIRMEN.
|
| 02:34:21 |
Unidentified Speaker, -
CHINA, CHAIRMAN GREENSPAN, I'VE BEEN TOLD THEY CONSUME 40% OF THE COAL IN THE WORLD, 25% OF THE SCRAP METAL AND A SIMILAR AMOUNT OF PRECIOUS ORES AND...
|
| 02:35:54 |
Unidentified Speaker, -
SUCH A SIGNIFICANT PART OF THE STEEL SCRAP IN THE WORLD AND INDEED IRON ORE AND ALL THE BASIC INGREDIENTS IS THAT THAT INDUSTRY HAS NOT BEEN GROWING ALL...
|
| 02:38:56 |
Unidentified Speaker, -
MOVE NOW OR IN THE NEAR FUTURE. THAT THEY COULD RESET THE BEG WITHOUT THOSE PROBLEMS. COULD THEY NOT? >> THEY COULD. BUT THEY HAVE TO BE CAREFUL WHERE...
|
| 02:39:27 |
Unidentified Speaker, -
A GREATER PROBLEM. THERE IS, I WOULD AGREE, A PEG LEVEL WHICH PROBABLY PREVENTS THAT FROM OCCURRING. I DON'T KNOW WHERE THAT IS. I'M NOT SURE THAT...
|
| 02:40:10 |
Unidentified Speaker, -
GENTLEMEN, THANK YOU VERY MUCH FOR YOUR CONTRIBUTIONS. WE LOOK FORWARD TO A NUMBER OF QUESTIONS WE WILL ASK YOU FOR THE RECORD. BUT
|
| 02:40:19 |
Unidentified Speaker, -
WE'RE ALSO WAITING FOR MR. HAWK AND MR. POWELL TO ANSWER SOME QUESTIONS. THANK YOU. MEETING IS ADJOURNED. ...
|
| 02:40:31 |
Unidentified Speaker, -
GOOD
|
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.