| 00:00:26 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
START THE DAY'S HEARING BY READING THE OVERSIGHT AND GOVERNMENT REFORM COMMITTEE'S MISSION STATEMENT. WE INTEND TO SECURE TWO FUNDAMENTAL PRINCIPLES,...
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| 00:02:37 |
Issa, Darrell - U.S. Representative, [R] California
STATEMENT. I, TOO, HAD THOUGHT THAT THE HEARING WOULD BE ABOUT SLIGHTLY DIFFERENT MATTERS, BUT IN RECENT DAYS THE COMMITTEE HAS BECOME AWARE OF WHAT...
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| 00:07:50 |
Quigley, Michael "Mike" - U.S. Representative, [D] Illinois
CHAIRMAN. SORRY. RANKING MEMBER, MR. QUIGLEY. >> SOON TO BE CHAIRMAN. >> IF YOU WANT TO SCOOT OVER, I'M ALL GOOD WITH THAT. THANK YOU SO MUCH, MR....
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| 00:12:43 |
Gosar, Paul - U.S. Representative, [R] Arizona
STATEMENT. >> THANK YOU, MR. CHAIRMAN. LET ME PREFACE MY COMMENTS WITH THE FOLLOWING -- I AM NOT A FINANCIAL ANALYST, I'M NOT AN ACCOUNTANT, I AM...
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| 00:16:04 |
Towns, Edolphus - U.S. Representative, [D] New York
GENTLEMAN. AND I NOW RECOGNIZE THE RANKING MEMBER OF SUBCOMMITTEE OF GOVERNMENT EFFICIENCY MANAGEMENT MR. TOWNS, CHAIRMAN OF THE FULL COMMITTEE, FOR...
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| 00:18:01 |
Cummings, Elijah - U.S. Representative, [D] Maryland
WANT TO THANK THE GENTLEMAN FOR YIELDING. THIS COMMITTEE'S RESPONSIBLE FOR ENSURING THAT OUR GOVERNMENT OPERATES EFFECTIVELY AND EFFICIENTLY. THAT...
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| 00:21:16 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
BOTTOM OF ALL THIS. I YIELD BACK. >> I THANK THE RANKING MEMBER AND ALL MEMBER MAY HAVE SEVEN DAY TO SUBMIT OPENING STATEMENTS FOR THE RECORD. WE'LL...
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| 00:22:51 |
Schapiro, Mary L. - Chair
ESPECIALLY ABOUT THIS CONFLICT THAT HAS BEEN DISCUSSED. MS. SCHAPIRO? >> THANK YOU, VERY MUCH. RANKING MEMBERS QUIGLEY AND TOWNS AND MEMBERS OF...
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| 00:28:30 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
ASSUREDNESS, WE WILL LEARN FROM THIS EXPERIENCE AND WE WILL TAKE ALL ACTIONS NECESSARY TO EARN THE TRUST THAT THE PUBLIC PLACES IN US. THANK YOU. >>...
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| 00:29:04 |
Katz, Jonathan - Secretary
BE A RECORD. THANK YOU AND CONGRATULATIONS. MR. KATZ? >> GOOD AFTERNOON, CHAIRMAN McHENRY. CHAIRMAN POTTS, RANKING MEMBER QUIGLEY, RANKING MEMBER...
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| 00:35:02 |
Crimmins, Stephen - Attorney
QUESTIONS. >> THANK YOU, MR. KATZ. MR. KRIMENS, FIVE MINUTES. >> THANK YOU, MR. CHAIRMAN. CHAIRMAN HENMcHENRY, THANK YOU FOR HOLDING THIS HEARING TODAY....
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| 00:40:17 |
Chaitman, Helen - Legal Adviser
MR. CHAPIN, YOU'RE RECOGNIZED FOR FIVE MINUTES. >> THANK YOU SO MUCH FOR GIVING ME THIS OPPORTUNITY. >> IF YOU'LL PULL THE MICROPHONE TO YOUR MOUTH....
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| 00:45:57 |
Schapiro, Mary L. - Chair
CONGRESSMAN, TO THE BEST OF MY RECOLLECTION AND JUST SO I CAN BE CLEAR CAN I HAVEN'T LOOKED AT ANY E-MAIL OR WHETHER THERE MIGHT BE ANY CONTEMPORANEOUS...
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| 00:46:47 |
Gosar, Paul - U.S. Representative, [R] Arizona
THE ETHICS COUNSEL AND TO FOLLOW THEIR ADVICE. AND THAT'S THE WAY IT WENT FORWARD. >> IT SEEMS THAT IN THE SAME --
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| 00:46:57 |
Schapiro, Mary L. - Chair
IF THE SAME SITUATION EXISTED IN A PUBLICLY TRADED COMPANY THAT YOU WERE INVESTIGATING, WOULD YOU TURN SUCH A CAVALIER -- HAVE SUCH A CAVALIER APPROACH...
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| 00:48:01 |
Chaitman, Helen - Legal Adviser
JUDGMENT. THE LAW IS ABSOLUTELY CLEAR THAT EVERY INVESTOR IS ENTITLED TO SIPC INSURANCE BASED ON HIS LAST STATEMENT. AND MR. BECKER HAD AN OBLIGATION...
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| 00:48:47 |
Schapiro, Mary L. - Chair
MADOFF. DO YOU THINK THAT YOUR GENERAL COUNSEL'S RECEIVING FUNDS FROM A MADOFF ACCOUNT WOULD HAVE BEEN APPROPRIATE MATERIAL FOR THE INSPECTOR GENERAL...
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| 00:50:55 |
Quigley, Michael "Mike" - U.S. Representative, [D] Illinois
YOU, MR. CHAIRMAN. MADAM CHAIRMAN, "THE NEW YORK TIMES" REPORTED ON MARCH 5th OF THIS YEAR THAT THE S.E.C. HAS DECLINED TO ENFORCE THE REQUIREMENT...
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| 00:51:09 |
Schapiro, Mary L. - Chair
SECURITIES LAW. THIS WOULD MAKE RATING AGENCIES LIABLE FOR FAULTY RATINGS. COULD YOU COMMENT ON THE TIMELINE FOR IMPLEMENTING THIS MEASURE? >> YES. I'D...
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| 00:55:35 |
Guinta, Frank C. - U.S. Representative, [R] New Hampshire
VICE CHAIR OF THE T.A.R.P. AND FINANCIAL SERVICES AND BAILOUT SUBCOMMITTEE OF NEW HAMPSHIRE FOR FIVE MINUTES. >> THANK YOU VERY MUCH, MR. CHAIRMAN....
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| 00:56:15 |
Katz, Jonathan - Secretary
WOULD. >> YES, THANK YOU VERY MUCH. OBVIOUSLY, I THINK EVERYBODY WOULD AGREE THAT THE CAPITAL MARKETS OF TODAY ARE EXPONENTIALLY GREATER. BUT MY POINT...
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| 01:00:39 |
Schapiro, Mary L. - Chair
LEFT, BUT WHAT ASSURANCE CAN YOU GIVE US THAT THAT NEW MANAGEMENT TEAM IS EFFECTIVELY MANAGING AND MAINTAINING THE NECESSARY CHANGES? >> I HAVE TO SAY...
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| 01:02:01 |
Towns, Edolphus - U.S. Representative, [D] New York
TO IMPROVE THE WAY WE OPERATE. >> THE GENTLEMAN'S TIME HAS EXPIRED. WITH THAT I RECOGNIZE MR. TOWNS. >> THANK YOU VERY MUCH, MR. CHAIRMAN. LET ME THANK...
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| 01:02:58 |
Schapiro, Mary L. - Chair
CAPITAL MARKETS, HOW WOULD IT AFFECT YOUR STAFFING? >> YES, SIR, I'D BE HAPPY TO. I THINK THE TWO THINGS THAT ARE MOST SEVERELY IMPACTED BY A LIMITED...
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| 01:05:56 |
Mack, Connie IV - U.S. Representative, [R] Florida
MUCH. I YIELD BACK. >> THANK YOU, MR. CHAIRMAN. WITH THAT I RECOGNIZE MR. MACK OF FLORIDA FOR FIVE MINUTES. >> THANK YOU, MR. CHAIRMAN. I ALSO WANT...
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| 01:06:29 |
Schapiro, Mary L. - Chair
OF THE EMPLOYEES ARE ACTING IN ACCORDANCE WITH S.E.C. EMPLOYEE CONDUCT STANDARDS? >> I HAVE RESPONSIBILITY FOR THE AGENCY IN THAT SENSE. I CANNOT TELL...
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| 01:11:21 |
Cummings, Elijah - U.S. Representative, [D] Maryland
IN ANY WAY THAT IT DID. >> THANK YOU. >> GENTLEMAN'S TIME HAS EXPIRED. I RECOGNIZE THE RANKING MEMBER OF THE FULL COMMITTEE. >> I DON'T WANT THAT...
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| 01:14:57 |
Schapiro, Mary L. - Chair
NEW ETHICS COUNCIL DOING A TOP TO BOTTOM VIEW OF OUR PROGRAM. YOU I NEED TO WORK WITH ALL OF OUR EMPLOYEES AND COMMUNICATE WITH ALL EMPLOYEES ABOUT...
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| 01:17:06 |
Ross, Dennis - U.S. Representative, [R] Florida
MUCH SO THAT MY STATE REQUIRED A CODE OF PROFESSIONAL RESPONSIBILITY. I UNDERSTAND UP TOO ARE A LAWYER. EVEN THOUGH YOU INHERITED QUITE A MESS AT...
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| 01:17:40 |
Schapiro, Mary L. - Chair
FURTHER INQUIRIES HAD BEEN MADE AT THAT TIME, THIS MIGHT HAVE BEEN AVOIDED. >> I DON'T DISAGREE WITH YOU IF FURTHER INQUIRIES MIGHT HAVE BEEN MADE,...
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| 01:20:19 |
Risinger, Jeffrey - Director
FOUND OF A VIOLATION OR ALLEGED VIOLATION OF ANY PERSONNEL POLICIES? >> THE FEDERAL LAWS THAT WE HAVE TO FOLLOW IN TERMS OF DISCIPLINING EMPLOYEES SET...
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| 01:21:58 |
Chaitman, Helen - Legal Adviser
YOU HAVE REQUESTED BE DONE IN ORDER TO AVOID THIS CONFLICT? >> UNDER THIS STATUTE, CONGRESSMAN DATED THAT THECONGRESS CONGRESS MANDATED THAT THEY GO INTO...
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| 01:22:48 |
Yarmuth, John - U.S. Representative, [D] Kentucky
KENTUCKY. >> THANKS TO ALL THE WITNESSES FOR YOUR TESTIMONY. OVER THE LAST COUPLE OF WEEKS, I'VE BEEN PLOWING MY WAY THROUGH THE FINANCIAL CRISIS INQUIRY...
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| 01:23:20 |
Schapiro, Mary L. - Chair
MAKE SURE THAT THE FAILINGS IN THE SYSTEM AS IT CONCERNED YOUR AGENCY WON'T REOCCUR? >> AS I HAVE NOT LOOKED AT THE REPORT RECENTLY, IT OBVIOUSLY FOCUSED...
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| 01:28:03 |
Issa, Darrell - U.S. Representative, [R] California
ARE AND WHERE WE THINK THERE ARE STILL GAPS. >> THANK YOU VERY MUCH. >> I YIELD FIVE MINUTES TO THE CHAIRMAN OF THE FULL COMMITTEE. >> MADAM CHAIR,...
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| 01:29:10 |
Schapiro, Mary L. - Chair
THAT BUDGET INCREASE BE IN YOUR STATION IN? IN OTHER WORDS, WHAT WOULD IT COST TO DO IT RIGHT WITHOUT PILING ON NEW YOU REGULATIONS WHEN THERE IS NO...
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| 01:34:14 |
Connolly, Gerald "Gerry" E. - U.S. Representative, [D] Virginia
ELSE. >> YES, OF COURSE I WILL. >> I THANK YOU ALL FOR YOUR INDULGENCE. YIELD BACK. >> MR. CONLEY OF VIRGINIA. >> THANK YOU, MR. CHAIRMAN. CHAIRMAN...
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| 01:35:21 |
Schapiro, Mary L. - Chair
THINK. >> DID YOU SAY TRILLION? >> YES, SIR. >> IT'S ENTIRELY UNREGULATED UNTIL DODD FRANK PASSED. IS THAT CORRECT? >> LARGELY UNREGULATED. >> WHATEVER...
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| 01:37:42 |
Katz, Jonathan - Secretary
VIEW? >> IS THIS JUST ANOTHER EXAMPLE OF HAVING MORE S.E.C. STAFLERS DO THE SAME THING? >> THERE'S A QUALITATIVE NUANCE DIFFERENCE IN WHAT I SAID...
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| 01:41:16 |
Platts, Todd - U.S. Representative, [R] Pennsylvania
A MANDATORY PROCESS. THE COMMISSION HAD A WEAK HAND. >> THANK THE GENTLEMAN. YIELD FIVE MINUTES TO MYSELF. I CHAIR THE SUBCOMMITTEE ON GOVERNMENT ORGANIZATION,...
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| 01:42:48 |
Schapiro, Mary L. - Chair
PEOPLE BELIEVE WHEN WE WERE TOLD SEVEN YEARS AGO WE GOT IT RIGHT AND WERE GOING TO BE ABLE TO GO FORWARD, HOW IS IT DIFFERENT TODAY? >> THANK YOU. MY...
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| 01:47:54 |
Speier, Karen Lorraine "Jackie" Jacqueline - U.S. Representative, [D] California
UP. I'LL YIELD BACK AND YIELD TO MS. SPEAR FROM CALIFORNIA FOR FIVE MINUTES. >> THANK YOU, MR. CHAIRMAN. THANK YOU ALL FOR YOUR PARTICIPATION IN...
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| 01:49:41 |
Schapiro, Mary L. - Chair
A LOT. MY FIRST QUESTION IS, HAVE YOU MADE ANY REFERRALS TO THE JUSTICE DEPARTMENT, THE U.S. ATTORNEY, AS A RESULT OF THE WALL STREET MELTDOWN? >>...
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| 01:53:02 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
DISAGREE. >> THAT'S PRECISELY THE PROBLEM. >> GENTLE LADY'S TIME HAS EXPIRED. I RECOGNIZE MYSELF FOR FIVE MINUTES. CHAIRMAN SHAPIRO, I WANT TO GET THIS...
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| 01:54:00 |
Schapiro, Mary L. - Chair
BEEN CLOSED. I DON'T RECALL WHETHER HE TOLD ME HE HAD PROCEEDS OR NOT. I HAVEN'T BEEN ABLE TO LOOK AT ANY -- >> HE BROUGHT THIS UP. HE RECEIVED...
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| 01:57:06 |
Chaitman, Helen - Legal Adviser
PIECE, I DO. WOULD IT HAVE CHANGED YOUR DEALINGS WITH THE S.E.C.'S LEGAL COUNSEL HAD YOU KNOWN THAT MR. BECKER WAS THE TRUSTEE OF A MADOFF ACCOUNT? >>...
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| 01:58:02 |
Katz, Jonathan - Secretary
YOU DESCRIBE, YOU SAID THE S.E.C. IS NEVER ENGAGED IN SERIOUS SELF EXAMINATION OF ITS PERFORMANCE OR USED APPROPRIATE MEASURES OF PERFORMANCE. IS THAT...
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| 01:58:44 |
Maloney, Carolyn - U.S. Representative, [D] New York
TIME. WE'LL HAVE TO -- OKAY. AT THE VERY LEAST, WE CAN GET TWO MINUTES IN FOR YOU, MS. NORTON. >> FIRST OF ALL QUALIFY, I WOULD LIKE TO WELCOME THE PANELISTS....
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| 02:01:21 |
Schapiro, Mary L. - Chair
SUE MR. BECKER AND HIS BROTHERS TO RECOVER SOME OF HIS MOTHER'S INHERITANCE, WHICH IS EXACTLY WHAT HAPPENED. CORRECT? >> THAT'S RIGHT. THE S.E.C. DID...
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| 02:03:43 |
Crimmins, Stephen - Attorney
MIGHT NOT HAVE HAD ANY EXPOSURE AT ALL, IS THAT CORRECT? MR. CRIMONS? >> YES. THE POINT IS THAT THE 500,000 THAT DOROTHY BECKER INVESTED WAS GOING...
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| 02:04:50 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
THE ONE THAT HE TOOK OR THAT THE S.E.C. TOOK. >> GENTLE LADY'S TIME HAS EXPIRED. WE HAVE VOTES ON THE FLOOR. >> I LOOK FORWARD TO THE I.G.'S REPORT. >>...
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| 02:05:08 |
Schapiro, Mary L. - Chair
CHAIRMAN, I'M SO SORRY. I WANTED TO SAY ONE THING. I WANT TO MAKE IT VERY CLEAR. I DON'T RECALL WHETHER MR. BECKER TOLD ME HE HAD INHERITANCE
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| 02:05:20 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
FROM THE ACCOUNT OR WHETHER HIS MOTHER HAD HAD AN ACCOUNT AND I MADE THAT SAUMPGDS. BECAUSE IT'S TWO YEARS AGO I DON'T RECALL. I WANT TO BE SO CLEAR...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.