| 00:00:28 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
I LIKE TO THINK YOU FOR COMING BEFORE THE COMMITTEE TO DISCUSS THIS IS MINISTRATIONS PAPER. A -- ADMINISTRATION'S PAPER. I AM -- ISSUED AN AGENDA THAT...
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| 00:05:08 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
REPORT FOR ENDING THE CONSERVATORSHIP OF FANNIE MAE AND FREDDIE MAC AND IMPROVING OUR HOUSING FINANCE HIS. DURING THE DEBATE -- DEBATE, REPUBLICANS...
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| 00:10:13 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
THE DISSENTING HE NEED TO RESTRUCTURE. EVERYONE HAS AN EQUITY AND THIS ISSUE OF GETTING IT RIGHT. A LOT OF THE ISSUES THAT YOU ARE DEALING WITH YOU SEEN...
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| 00:12:19 |
Brown, Sherrod - U.S. Senator, [D] Ohio
THIS CRISIS MUST BE IN OUR PRIORITIES. THANK YOU FOR ACKNOWLEDGING DEBT PROBLEM IN YOUR TESTIMONY. POLICY MATTERS. 2010 WAS THE BEARS' TIME IN 15 YEARS...
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| 00:14:52 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
OPEN FOR ADDITIONAL STATEMENTS AND QUESTIONS. >> NEITHER ONE OF THE TWO WITNESSES HAVE ANY SORT OF EXTENSIVE INTRODUCTION. WE HAVE THE SECRETARY OF THE...
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| 00:15:47 |
Geithner, Timothy F. - Secretary
CHANCE TO COME. LAST MONTH, THEY RELEASED A REPORT OUTLINING THE PROPOSED REFORMS FOR THE FINANCE MARKET. OUR PLAN WAS TO CREATE A SYSTEM IN WHICH THE...
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| 00:22:25 |
Donovan, Shaun - Secretary
I WOULD LIKE TO FOCUS ON THE ADMINISTRATION'S COMMITMENT TO HOUSING AFFORDABILITY. AND HOW THE ADMINISTRATION MUST WORK TOGETHER TO MAKE SURE HOUSING...
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| 00:29:07 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
QUITE THERE HAVE BEEN REPORTS THAT A LARGE FINANCIAL INSTITUTIONS ARE IN UNDERSERVED COMMUNITIES. HOW WOULD EACH OF THE OPTIONS WOULD CONTINUE FOR AMERICANS...
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| 00:29:51 |
Donovan, Shaun - Secretary
ONE OF THE ELEMENTS THAT WE HIGHLIGHT. WE HAVE SEEN WITH THE EFFECTS OF THE CRISIS IS IN THE BECAME CONSOLIDATION TO THE POINT WHERE THE TOP FIVE LENDERS...
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| 00:34:21 |
Geithner, Timothy F. - Secretary
ONE OF THE GREAT THING ABOUT OUR SYSTEM IS THAT THEY WILL PUT OUT A DRAFT SO THAT ALL PARTIES WILL HAVE A CHANCE TO PROVIDE IT BUYS DIRECTLY. DEEP --...
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| 00:35:25 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
HAVE YOU BEEN INVOLVED IN ESTABLISHING A SETTLEMENT FIGURE WHICH HAS BEEN REPORTED AS HIGH AS $30 BILLION? >>
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| 00:35:37 |
Donovan, Shaun - Secretary
THAT IS BECAUSE THEY HAVE A SIGNIFICANT STAKE IN THE PERFORMANCE OF SERVICING BY THE LENDERS THAT ORIGINATED. >> AS ELIZABETH WARREN BEEN PARTICIPATING...
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| 00:36:24 |
Geithner, Timothy F. - Secretary
WHO IS THE LETTER FROM? >> IT IS FUNNY. >> MAKE THE LATTER PART OF THE RECORD? BUT ABSOLUTELY. >> UNDER THE REFORM ACT, THE CONSUMER FINANCIAL PROTECTION...
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| 00:44:35 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
THE CONTEXT OF THIS DISCUSSION ABOUT THE GLOBAL SETTLEMENT -- AND I THINK SHOULD COME TO THE APPROPRIATE CONCLUSION, THERE IS THE POTENTIAL FOR NUMEROUS...
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| 00:45:34 |
Geithner, Timothy F. - Secretary
IMPORTANT. IT WOULD HELP RESOLVE THE PROCESS. IT SHOULD GIVE THIS A BETTER CHANCE TO MOVE LESS BEYOND THIS. IT IS VERY IMPORTANT THAT WE TRY TO BRING...
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| 00:47:01 |
Donovan, Shaun - Secretary
AS WELL, WE HAVE MADE CLEAR INSURING THAT WE HAVE CLEARED CONSISTENT STANDARDS IS AN IMPORTANT ELEMENT OF OUR RECOMMENDATION. ONE REASON WE ENDED UP...
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| 00:51:24 |
Corker, Bob - U.S. Senator, [R] Tennessee
KNOW THAT THE ADMINISTRATION HAS LAID OUT THREE OPTIONS. I AM ONE OF THOSE FOLKS THAT BELIEVES IN THAT THE ADMINISTRATION WORKS BEST WHEN WE LAY OUT SOMETHING...
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| 00:52:05 |
Geithner, Timothy F. - Secretary
CORRECT -- DIRECTLY. IT IS LIKELY WE WILL DO THIS, BUT WE HAVE TO CONSULT WITH THE COLLEAGUES. AFTER FURTHER EXPLORATION OF THESE OPTIONS, I THINK IT...
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| 00:58:39 |
Schumer, Charles E. - U.S. Senator, [D] New York
THAT TRY TO LAY THE ENTIRE BLAME OF THE FINANCIAL CRISIS AT FANNIE AND FREDDIE'S FEET. IT IS IDEOLOGICAL AS OPPOSED TO LOOKING AT THE FACTS. IT IS HARD...
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| 01:01:13 |
Geithner, Timothy F. - Secretary
RISK. >> WE HAVE A FINANCIAL STRUCTURE THAT IS BASICALLY THE FUNCTIONAL EQUIVALENT. THE QUESTIONS THAT YOU RAISE ABOUT THE FBI C R A OMAHA -- FDIC ARE...
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| 01:02:11 |
Donovan, Shaun - Secretary
IT IS IMPORTANT TO POINT OUT AS WELL, GIVEN THAT THE OBLIGATIONS ARE THE SECOND-LARGEST SECURITIES MARKET IN THE WORLD. THERE IS NO PRECEDENT FOR COVER...
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| 01:03:58 |
Moran, James "Jim" - U.S. Representative, [D] Virginia
STEPS COULD YOU TAKE TODAY SHORT OF THE TWO-YEAR. -- TWO-YEAR PERIOD. >>
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| 01:04:11 |
Geithner, Timothy F. - Secretary
THERE ARE THINGS THAT WE CAN DO TO HELP GRADUALLY PHASE OUT THE GOVERNMENT'S ROLE. THE WAY, THERE IS CLARITY. BETTER DISCLOSURE REQUIREMENTS, THINGS LIKE...
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| 01:05:08 |
Donovan, Shaun - Secretary
ON AS WELL, FHA HAS GROWN FROM 10% TO 15% TO CLOSE TO 30% TO OVER 50%. WITH THE AUTHORITIES, WE ANNOUNCED AN INCREASE IN THE PREMIUMS THAT IN ADDITION...
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| 01:12:07 |
Hagan, Kay R - U.S. Senator, [D] North Carolina
COULD YOU TURN ON YOUR MICROPHONE? >>
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| 01:12:32 |
Hagan, Kay R - U.S. Senator, [D] North Carolina
OF THE GOVERNMENT SAYS THE MORTGAGES WILL BE VIEWED FOR PURPOSES OF CAPITAL STANDARDS. HOW WOULD YOU EXPECT MORTGAGES AND MORTGAGE RELATED SECURITY TO...
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| 01:13:03 |
Geithner, Timothy F. - Secretary
REQUIRE BANKS TO HOLD AGAINST RISK, I WOULD NOT ALTER THEM BASED ON THE OPTIONS THAT CONGRESS ULTIMATELY COMES TO. BECAUSE OF THE SIMPLE PROPOSITION THAT...
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| 01:14:14 |
Donovan, Shaun - Secretary
IT WILL BE CRITICAL HERE. HOW WE SET THOSE STANDARDS, SECRETARY GEITHNER SAID QRM WILL BE A CRITICAL PART OF HOW WE SET THOSE STANDARDS. WE SHOULD CONTINUE...
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| 01:19:29 |
Vitter, David - U.S. Senator, [R] Louisiana
SENATOR MORAN'S CONCERNS ABOUT THE FISCAL SITUATION. THE YOU THINK THE CONGRESS AND THE PRESIDENT CAN PUT OFF BEYOND THE NEXT ELECTION, SOME MAJOR APPROACH...
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| 01:20:36 |
Donovan, Shaun - Secretary
FIVE YEARS, REDUCTIONS WE'RE PROPOSING FOR 2012, ALMOST 1/3% REDUCTION RELATIVE TO 2010, THAT WOULD BRING THIS BRIGADE -- DOMESTIC DISCRETIONARY SPENDING...
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| 01:21:41 |
Geithner, Timothy F. - Secretary
I DO NOT AGREE WITH THAT. WHAT THE PRESIDENT PROPOSED IN HIS BUDGET IS A SERIES OF DETAILED CHANGES TO OUR RESOURCES AND OUR COMMITMENTS TO REDUCE OUR...
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| 01:26:13 |
Merkley, Jeffery "Jeff" - U.S. Senator, [D] Oregon
AND GET A SENSE OF THE PIECE IS AND WHAT YOUR THINKING. A PIECE OF THE GUARANTEE FUND FEED BEING PULLED OFF FOR THE CATASTROPHIC GUARANTEE FUND, WITH...
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| 01:26:47 |
Donovan, Shaun - Secretary
ONE OF THE PRINCIPLES WE HAVE AS WE LET OUT THESE ACTIONS, -- OPTIONS, WAS TO PROVIDE THE OPPORTUNITY TO RESPOND TO MARKET CONDITIONS AS YOU ENTER A...
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| 01:28:50 |
Geithner, Timothy F. - Secretary
THEM FOR CAPITAL. AND THAT THEY ARE REQUIRED TO BE SUBJECT TO A SET OF COMPREHENSIVE OVERSIGHT SUPERVISION AND CAPITAL REQUIREMENTS TO DO THAT. THE...
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| 01:33:07 |
Kirk, Mark Steven - U.S. Senator, [R] Illinois
UP ON EVERYONE ELSE'S THOUGHTS AND THE INCREASED RISK ROUTINE BY THE PRIVATE SECTOR, ONE OF THE KEY PROBLEMS FOR THE AMERICAN PEOPLE THE BEST UNDERSTAND...
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| 01:34:33 |
Geithner, Timothy F. - Secretary
THAT. YOU HAVE TO DO TWO THINGS. OR MAYBE MANY MORE THAN TWO THINGS. YOU WANT TO MAKE SURE THAT YOU GET THAT THE PEOPLE ORIGINATE BE SUPPOSED TO SOME...
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| 01:35:12 |
Donovan, Shaun - Secretary
THEY WOULD BE AT RISK NOT JUST FOR WORST MORTGAGES BUT ALL 100 MORTGAGES IN THE POOL TO THE EXTENT OF THE CAPITAL OF THEIR HOLDING AS WELL AS THE EQUITY,...
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| 01:38:24 |
Bennet, Michael - U.S. Senator, [D] Colorado
ONE OF THE THINGS THE WORRIES ME IN READING THE THREE OPTIONS AND ALL THE DISCUSSIONS BEING HAD IS THAT EVEN THOUGH WE WILL NOT MAKE AN EXPLICIT GUARANTEE,...
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| 01:39:11 |
Geithner, Timothy F. - Secretary
OUR CAPACITY TO MAKE A SUBSTANTIAL IMPROVEMENT IN MITIGATING THE RISK. UNDER THE OPTIONS WE PROPOSE, IN EACH OF THEM, ANY GUARANTEE THE GOVERNMENT PROVIDED...
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| 01:40:52 |
Donovan, Shaun - Secretary
WELL, PART OF THIS DEBATE IS TO LOOK AT OTHER COUNTRIES AROUND THIS WORLD THAT HAVE DIFFERENT HOUSING FINANCE SYSTEMS AND TO SAY, THEY DO NOT HAVE MECHANISMS...
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| 01:44:24 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
VERY BRIEF QUESTIONS. SECRETARY DONOVAN, THE ADMINISTRATION CAUTIONED AGAINST A HASTY TRANSITION FROM FANNIE MAE AND FREDDIE MAC IN THE CURRENT ECONOMY,...
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| 01:45:16 |
Donovan, Shaun - Secretary
PULLING MORTGAGES AWAY FROM THE PUBLIC MARKET WITH THESE THESE? -- THESE FEES? >> THERE WILL BE SOME INCREASED COST FOR MORTGAGES. IF YOU LOOK BACK...
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| 01:48:17 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
SECRETARY DONOVAN, QUOTING YOUR WORDS, THE ADMINISTRATION IS FULLY COMMITTED TO EXPLORING OTHER MEASURES TO MAKE SURE THAT SECONDARY MARKET PARTICIPANTS...
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| 01:49:14 |
Donovan, Shaun - Secretary
I THINK THAT WE'VE TALKED ABOUT THE RISKS OF THE POLITICIZATION OF ANY OF THESE ISSUES. >> AND THERE ARE BIG RISKS THERE. >> NO QUESTION. GOING BACK TO...
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| 01:51:17 |
Geithner, Timothy F. - Secretary
IN THE CONTEXT OF FANNIE AND FREDDIE, AND THE SUPPORT THAT THE GOVERNMENT PROVIDES, YOU ARE RIGHT TO SAY THAT MOST OF THE BENEFITS OF THOSE GUARANTEES...
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| 01:52:38 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
THANKS AGAIN TO SECRETARY GEITHNER AND SECRETARY DONOVAN FOR BEING HERE TODAY. IT IS SET THE ESSENTIAL TO HAVE AN AFFORDABLE HOUSING MARKET FOR AMERICAN...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.