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All Speakers
00:00:21
Unidentified Speaker, -
TREASURY SECRETARY TIMOTHY GEITHNER. HE'LL BE TESTIFYING ABOUT THE OVERSIGHT COUNCIL'S ANNUAL REPORT. ONE OF THE BOARD'S PRIMARY TASKS IS TO MONITOR...
00:03:56
Unidentified Speaker, -
ON THE RECENTLY FINANCIAL OVERSIGHT COUNCIL'S ANNUAL REPORT. WE'RE TAKING YOUR TWEETS AND REACTIONS DURING THIS HEARING@GEITHNER. AND WE'LL BE STREAMING...
00:04:26
Unidentified Speaker, -
REPORT OF THE FINANCIAL OVERSIGHT COUNCIL. UNDER COMMITTEE RULE 3 F 2 TIME FOR OPENING STATEMENT IS LIMITED TO EIGHT MINUTES FOR EACH SIDE OF THE AISLE....
00:04:59
Unidentified Speaker, -
WE'RE ALL INTERESTED IN AVOIDING THE NEXT FINANCIAL CRISIS. I THINK WE CAN ALL AGREE THE BEST PLACE TO START IS BY DMOG HARM. THIS COMMITTEE SPENT A...
00:06:17
Unidentified Speaker, -
GEITHNER, I KNOW WE'RE HERE TO TALK ABOUT THE STABILITY OF THE NATION'S FINANCIAL SYSTEM. AS I TRALD AROUND THE NORTHWEST CORRIDOR
00:06:25
Unidentified Speaker, -
OF WISCONSIN, MY CONSISTENT CONSTITUENTS FEEL THE FINANCIAL SYSTEM IS FAR FROM COMMUNITY THE EURO CRISIS, THE AMERICAN DEBT CRISIS, THE AMERICAN CRISIS...
00:07:12
Unidentified Speaker, -
MENDS ABOUT THE
00:07:15
Unidentified Speaker, -
00:07:16
Unidentified Speaker, -
FSOK THAT MR. PATRICK -- MR. RAISED OF HAVING A ROBUST ECONOMY IN THE FACE OF NEW REGULATIONS THAT ARE PROMULGATED AT DODD SIRK. I KNOW THEY'RE WORKING...
00:08:42
Unidentified Speaker, -
YOU FOR YOUR EXTRAORDINARY PUBLIC SERVICE. THIS MAY BE THE LAST TIME THAT YOU
00:08:46
Unidentified Speaker, -
TESTIFY BEFORE THE FINANCIAL SERVICES ECONOMY AND I REALLY WANT TO MAKE SURE THAT MY APPRECIATION AND CERTAIN THE -- STEERING US THROUGH THE WORST...
00:09:46
Unidentified Speaker, -
TO KNOW THE STATEMENT MADE EARLIER TODAY BY SANDY WHILE, THE FORMER CEO OF CITY BANK. AND HE SAID EARLIER THIS MORNING ON "SQUAWK BOX," CNBC, WHAT...
00:12:07
Unidentified Speaker, -
EXACTLY WHAT HAS BEEN DONE TO MAKE OUR FINANCIAL
00:12:10
Unidentified Speaker, -
SYSTEM STRONGER AND MOST SECURE. ONE OF THE MOST OBVIOUS LESSONS WAS THAT THE SYSTEM HAD BECOME TOO COMPLEX FOR LANKS AND THEIR REGULATORS TO EFFECTIVELY...
00:13:13
Unidentified Speaker, -
NEED BACK. >> SENATOR DOLE FROM ILLINOIS. >> THANK YOU, MR. CHAIRMAN. BIPARTISAN OBJECTIVE HAS TO BE TO MAXIMIZE PRIVATE SECTOR JOB
00:13:22
Unidentified Speaker, -
GROWTH AND GLOBAL COMPETITIVENESS
00:13:25
Unidentified Speaker, -
WHILE ENSURING ECONOMIC STABILITY. REGULATIONS ARE NECESSARY BUT THEY MUST BE SENSIBLE AND BALANCED. THE RULES MUST BE TRANSAPPARENT, UNAMBIGUOUS AND...
00:14:46
Unidentified Speaker, -
SECRETARY, ALMOST THE SAME THING YOU'VE HEARD IN SOME THE OPENING STATEMENTS. WE'RE ENGAGED IN A PROJECT IN OUR OFFICE WHERE WE'RE TRYING TO BUILD...
00:14:54
Unidentified Speaker, -
CHART OF ALL THE REGULATORY MEK REGULATORY MECHANICS AND PROM UL -- AND MATCH WITH RULE PROMULGATION. HAS DODD-FRANK WITH GOOD INTENTIONS CREATED A...
00:15:52
Unidentified Speaker, -
MINUTES. >> AS MY STYLE
00:15:55
Unidentified Speaker, -
APPROACHES, A CERTAIN NOSTALGIA IS INESCAPABLE. I TRY NOT TO
00:16:02
Unidentified Speaker, -
INDULGE IN IT BUT I'M OVERWHELMED WITH IT AGAIN. WHEN I WAS ABOUT TO BECOME CHAIRMAN AFTER THE 2006 ELECTION, I WAS BESIEGED BY THE WALL STREET JOURNAL...
00:21:12
Unidentified Speaker, -
CHAIRMAN. AND GOOD MORNING, MR. SECRETARY. THE AMERICAN PEOPLE WERE TOLD
00:21:19
Unidentified Speaker, -
THAT THEY COULD REST ASSURED THESE REGULATORY STALIERS -- SCALEFAILURES, WITNESSED THE CLASP OF MF GLOBAL. IN THE LAST MONTH THE COLLAPSE OF PFG COMMODITIES,...
00:22:29
Unidentified Speaker, -
THE CRISIS OF 2008 WAS CAUSED BY A NUMBER OF FACTORS.
00:22:35
Unidentified Speaker, -
I THINK AT THIS POINT WE CAN SAY THAT LACK OF AUTHORITY OR INFORMATION BY REGULATORS WAS NOT ONE OF THEM. INSTEAD OF ADVANCING A TRUE REFORM OF OUR...
00:23:24
Unidentified Speaker, -
MUST LEAVE AT NOON TODAY TO ACCOMMODATE AS MANY MEMBERS AS POSSIBLE TO QUESTION THE SECRETARY, THE CHAIR ANNOUNCES HE STRICT I ENFORCE THE FIVE-MINUTE...
00:24:09
Unidentified Speaker, -
THANK YOU. MR. SECRETARY,
00:24:13
Unidentified Speaker, -
YOU'RE RECOGNIZED. >> CHAIRMAN. >> AND THE ONLY THING THAT WILL NOT BE STRICTLY ENFORCED IS THE FIVE MINUTES ON YOUR STATEMENT. YOU CAN -- >> CHAIRMAN
00:24:22
Unidentified Speaker, -
BACCHUS, MEMBERS OF
00:24:23
Unidentified Speaker, -
THE COMMITTEE, THANKS FOR GIVING ME ANOTHER CHANCE TO TESTIFY BEFORE THIS COMMITTEE TODAY ON THE
00:24:29
Unidentified Speaker, -
RECOMMENDATIONS OF THE FINANCIAL STABILITY OVERSIGHT COUNCIL'S ANNUAL REPORT. >> YOU NEED TO BE A LITTLE LOUDER. >> OF COURSE, I'M HAPPY TO TRY TO...
00:24:40
Unidentified Speaker, -
AS THE COUNCIL'S REPORT
00:24:42
Unidentified Speaker, -
OUTLINES WE HAVE MADE SIGNIFICANT PROGRESS IN THE UNITED STATES REPAIRING AND REFORMING OUR FINANCIAL SYSTEM. WE HAVE FORCED BANKS TO RAISE MORE THAN...
00:30:57
Unidentified Speaker, -
YOU DISCOVERED IN 2007 THAT THE WORLD'S BIGGEST BANKS WERE MANIPULATING LIBOR. YOUR OWN RECOMMENDATIONS MADE IN MAY OF 2008 THE FOLLOWING YEAR INDICATED...
00:31:49
Unidentified Speaker, -
BANKS, EUROPEAN BANKS WERE HAVING A TOUGHER TIME RAISING DOLLARS. THOSE LIBOR RATES BEGAN TO RISE AND THERE WAS A LOT OF CONCERN IN THE MARKET THAT...
00:32:38
Unidentified Speaker, -
CFDC, THE SEC AND THE
00:32:41
Unidentified Speaker, -
FED. >> HOW ABOUT THE JUSTICE DEPARTMENT? >> JUSTICE IS NOT A MEMBER OF THAT COMMITTEE. AND THEN -- >> LET ME ASK YOU, YOU WERE AWARE
00:32:49
Unidentified Speaker, -
OF THE POSSIBILITY OF
00:32:51
Unidentified Speaker, -
FRAUD. >> WE WERE ABSOLUTELY AWARE, NOT JUST OF THE REPORTS THAT BANKSINGS WERE
00:32:55
Unidentified Speaker, -
UNDERREPORTING AND MISREPORTING, BUT THE NATURE OF THE RATE, AGAIN, THIS
00:32:59
Unidentified Speaker, -
IS A RATE SET IN LONDON OVERSEEN BY THE BRITISH BANKERS ASSOCIATION AND IT'S A RATE THAT IS AN AVERAGE OF CONSTRUCTED AVERAGE OF ESTIMATES. >> THAT'S...
00:33:18
Unidentified Speaker, -
THREE U.S. BANKS. >>
00:33:19
Unidentified Speaker, -
THREE AT THAT TIME, THREE OF 16, NOW 3 OF 1. BUT WE WERE
00:33:25
Unidentified Speaker, -
AWARE OF THE RISK THAT THE WAY THIS
00:33:27
Unidentified Speaker, -
WAS DESIGNED CREATED NOT JUST THE INCENTIVE FOR BANKS TO UNDERREPORT BUT GAVE THEM THE OPPORTUNITY TO UNDERREPORT. AND THAT WAS A PROBLEM. >> ALL RIGHT....
00:33:43
Unidentified Speaker, -
WHAT ACTION DID YOU TAKE? YOU WERE AWARE THAT THEY TOOK NO ACTION, I BELIEVE? >> WELL, LET ME AGAIN EXPLAIN WHAT I DID. OUR FIRST INSTINCT WAS NOT...
00:33:58
Unidentified Speaker, -
ENFORCEMENT AGENCIES BUT TO BRING THIS TO THE BRITISH. AND I PERSONALLY RAISED THIS WITH THE GOVERNOR OF THE BANK OF ENGLAND. AND THEN I SENT HIM...
00:34:19
Unidentified Speaker, -
OF MISCONDUCT. BUT ACCORDING TO WHAT YOU SUPPLIED HIM, THAT -- HIS TESTIMONY WOULD NOT BE CORRECT, IS THAT RIGHT? >> WELL, AGAIN, I FELT THAT WE DID...
00:34:36
Unidentified Speaker, -
THE BRITISH OF THE NOT JUST THE REPORTS AND THE CONCERNS THAT WERE BROADLY AVAILABLE IN THE MARKET AND THE PUBLIC DOMAIN, BUT ALSO OF THE RANGE OF PROBLEMS...
00:35:04
Unidentified Speaker, -
TIME TO ADDRESS THE CONCERNS THAT LIBOR WAS BEING MISREPORTED, THE EXISTENCE OF FRAUD AND RIGGING? >> WHAT THE CFTC DID IN ROUGHLY THE SAME TIME FRAME...
00:35:21
Unidentified Speaker, -
ULTIMATE LITTLE TOOK FOUR YEARS WHICH RESULTED IN THE VERY, VERY STRONG APPROPRIATELY STRONG ENFORCEMENT RESPONSE YOU SAW ANNOUNCED EARLIER THIS MONTH....
00:35:42
Unidentified Speaker, -
BILLION AND ALSO THE $100 BILLION TAFF. NOW WE KNOW THAT THOSE ARE UNDERSTATED. IS DOES THAT WORK TO THE TAXPAYER. >> WE WERE IN THE POSITION OF INVESTORS...
00:36:05
Unidentified Speaker, -
TO DECIDE USED AS A REFERENCE FOR WHAT YOU'RE LEN ING INTHAT CONTEXT AND WE DID WHAT EVERYBODY ELSE DID, WHICH IS TO USE THE BEST RATE AVAILABLE AT...
00:36:54
Unidentified Speaker, -
WHAT'S HAPPENED HERE
00:36:55
Unidentified Speaker, -
IS THAT SOME OF THE LEADING
00:36:57
Unidentified Speaker, -
FINANCIAL INSTITUTIONS IN THE WORLD BEHAVED IN AN OUTRAGEOUS FASHION. THESE WERE NOT BAD GUESSES ABOUT DERIVATIVES. THESE WERE NOT OVERCONFIDENCE ABOUT...
00:38:51
Unidentified Speaker, -
SECRETARY OF THE TREASURY. >> AND THE SECT OF THE TREASURY. >>
00:38:54
Unidentified Speaker, -
SO WE HAVE FOUR. >> THOSE ARE THE CORE
00:38:57
Unidentified Speaker, -
MEMBERS. PROBABLY THE CHAIRMAN OF THE
00:38:59
Unidentified Speaker, -
FDIC
00:39:00
Unidentified Speaker, -
MAYBE OCCASIONALLY BUT THOSE ARE THE CORE
00:39:02
Unidentified Speaker, -
MEMBERS. >> SO THESE ARE ALL
00:39:04
Unidentified Speaker, -
BUSH APPOINTEES. I THINK THIS IS A PROBLEM NOT OF THE REGULATORS BUT OF THE PRIVATE SECTOR AND OF THE BRITISH BECAUSE
00:39:12
Unidentified Speaker, -
THIS WAS A BRITISH ASSOCIATION. IF PEOPLE ARE GOING TO START POINTING FINGERS AT REGULATORS ALL THOSE PEOPLE WERE PRESIDENTIAL APPOINTEES CONFIRMED BY...
00:39:28
Unidentified Speaker, -
YOU
00:39:30
Unidentified Speaker, -
REPORTED WHAT YOU FOUND AND MAYBE THINGS WEREN'T DONE TOUGH ENOUGH ALTHOUGH I AM STRUCK YOU NOTE THE CFTC DID BEGIN THE INVESTIGATION WHICH CULMINATED...
00:41:18
Unidentified Speaker, -
CHANGE
00:41:20
Unidentified Speaker, -
THE LAW TO LIMIT THE AUTHORITY
00:41:23
Unidentified Speaker, -
AVAILABLE TO THE REGULATORS TO PROTECT AN INSTITUTION FROM ITS MISTAKES. >> AND THEY ARE THEN PUT OUT OF BUSINESS. BY THE WAY, THERE ARE SOME NOW ...
00:41:36
Unidentified Speaker, -
THAT. A NEW BOOK BY MR. CONRAD, A MANAGING DIRECTOR OF BOYNE, I JUST GOT A COPY COMPLAINING THAT WE HAVE RESTRICTED THE ABILITY OF THE FEDERAL REGULATORS...
00:42:10
Unidentified Speaker, -
I'M I DON'T QUITE
00:42:11
Unidentified Speaker, -
UNDERSTAND YOUR
00:42:13
Unidentified Speaker, -
ANSWER CONCERNING THE FED'S USE THE NEW YORK FED'S USE OF LIBOR. ON THE ONE HAND, I THINK YOU HAVE SAID THAT "WE ACTED VERY EARLY IN RESPONSE. WE...
00:43:07
Unidentified Speaker, -
WE DID THE IMPORTANT VERY CON SEQUENCETIAL THING OF BRINGING IT TO THE ATTENTION TO THE FULL COMPLEMENT OF OF AUTHORITIES AND -- >> BUT YOU WEREN'T...
00:43:24
Unidentified Speaker, -
TO MAKE A BASIC CHOICE AMONG ALTERNATIVES AT THAT TIME AND I THINK THAT WAS THE RIGHT TIME BACK THEN. >> BETWEEN
00:43:29
none, -
A MANIPULATED NUMBER
00:43:30
Unidentified Speaker, -
AND A NONMANIPULATED NUMBER. >> I WOULDN'T SAY IT THAT WAY. I WOULD SAY THIS WAS A RATE THAT WAS STRUCTURED
00:43:36
Unidentified Speaker, -
IN A RATE THAT WAS VULNERABLE TO MISREPORTING. WE WERE CAN HE VERY CONCERNED ABOUT
00:43:41
Unidentified Speaker, -
THAT AND WHAT WE DECIDED TO DO WAS TO TRY TO INITIATE A REFORM OF THE PROCESS WITH THE BRITISH BUT ALSO JUST TO MAKE SURE THE OTHER RELEVANT AUTHORITIES...
00:43:59
Unidentified Speaker, -
A LOT OF DISCUSSION OF THE EUROPEAN DEBT CRISIS. FRANKLY, I SEE VERY LITTLE DISCUSSION OF THE U.S. DEBT CRISIS. WE KNOW THAT ON A NOMINAL BASIS, THIS...
00:46:15
Unidentified Speaker, -
REFORMS TO ENTITLEMENT SPENDING. WE AGREE THAT OUR FISCAL DEFICITS ARE UNSUSTAINABLE. >> WHAT IS CHAPTER 3 OF THIS REPORT ABOUT, CAN ANNUAL REPORT RECOMMENDATIONS?...
00:46:29
Unidentified Speaker, -
OF U.S. FINANCIAL MARKETS, OUR FISCAL UNSUSTAINABILITY. >> WE DID IDENTIFY IN THE REPORT AS I DID IN MY STATEMENT IN SUMMARIZING THE REPORT THESE...
00:46:41
Unidentified Speaker, -
RISK TO THE AMERICAN ECONOMY AND ULTIMATELY TO THE FINANCIAL SYSTEM. WE HIGHLIGHTED THAT BASIC RISK IN THE REPORT. >> BUT YOU JUST MAKE NO RECOMMENDATION...
00:46:55
Unidentified Speaker, -
THING TO ASK THE FED THE SEC, THE CFDC TO
00:47:01
Unidentified Speaker, -
THE DETAIL A REFORM PLAN. YOU'RE RIGHT TO SAY IT'S A RISK. THE COUNCIL IS RIGHT TO HIGHLIGHT THAT RISK. I DON'T THINK IT'S CORRECT IT SAY THE COUNCIL...
00:47:20
Unidentified Speaker, -
THANK YOU VERY MUCH. ACCORDING TO ANDREW LOWE,
00:47:26
Unidentified Speaker, -
A PROFESSOR AT MIT, THIS LIBOR FIXING SCANDAL
00:47:31
Unidentified Speaker, -
DWARFS BY ORDERS OF MAGNITUDE ANY FINANCIAL SCAM IN THE HISTORY OF MARKETS. THAT'S PRETTY STRONG. I'D LIKE YOU TO TELL ME IF YOU THINK THAT STATEMENT...
00:48:10
Unidentified Speaker, -
BRITISH, WE IDENTIFIED A SERIES OF SPECIFIC THINGS THAT WOULD MAKE IT UNTENABLE FOR THIS RATE TO BE AFFECTED BY THE BANK'S ENCENTIVE TO LOWER THEIR...
00:51:34
Unidentified Speaker, -
ELSE CAN CONGRESS DO TO ENSURE THAT THE INTEREST RATES THAT ARE BEING PAID BETWEEN THE BANKS IS FAIR AND EQUITABLE AND SOMEHOW WILL NOT NEGATIVE LITTLE...
00:52:00
Unidentified Speaker, -
AND YOU SHOULD ASK FOR PERIODIC UPDATES FROM THESE AGENCIES ON THE REFORMS UNDER WAY TO ADDRESS TA RISK. THAT'S FULLY PLOIPT. WE WELCOME THAT EFFORT....
00:52:20
Unidentified Speaker, -
AND GOOD MORNING, MR.
00:52:23
Unidentified Speaker, -
SECRETARY. I HAVE A
00:52:26
Unidentified Speaker, -
QUESTION ABOUT THE WORKING -- PRESIDENTS WORKING GROUP ON FINANCIAL MARKETS. THERE'S AN ARTICLE THAT SAID THAT THE FED BRIEFED THE PRESIDENT'S WORKING...
00:52:50
Unidentified Speaker, -
FED BRIEFED THE WORKING GROUP. DOES THAT MEAN YOU DID IT
00:52:54
Unidentified Speaker, -
OR SOMEBODY ELSE FROM THE FED IN. >> IT WAS ON THE AGENDA OF THE MEETING. AND I WENT TO PROVIDE -- I WASN'T A MEMBER OF THE GROUP BUT I OCCASIONALLY...
00:53:05
Unidentified Speaker, -
TO PROVIDE AN UPDATE ON THIS ISSUE AND THEN MY STAFF SUBSEQUENTLY BRIEFED OFFICIALS OF THE TREASURY AND SEPARATELY OFFICIALS OF THE SEC AND THE CFTC....
00:53:22
Unidentified Speaker, -
YOU'VE HAD SINCE, DO YOU KEEP DETAILED MINUTES
00:53:25
Unidentified Speaker, -
OF ALL
00:53:26
Unidentified Speaker, -
THOSE MEETINGS? >> WE DO KEEP MINUTES OF THE COUNCIL MEETINGS TODAY AND PUT THOSE IN THE PUBLIC RECORD. >> AND THEY'RE. >> WITH WHATEVER THE APPROPRIATE
00:53:35
Unidentified Speaker, -
LAG IS TO MAKE SURE WE HAVE REVIEW BY THE AGENCY. >> HOW OFTEN DO THOSE MEETINGS LEAD
00:53:40
Unidentified Speaker, -
TO POLICY CHANGES WHERE
00:53:41
Unidentified Speaker, -
YOU MAKE A DECISION AND THE FED GOES OUT AND DOES SOMETHING OR TREASURY DOES SOMETHING OR
00:53:46
Unidentified Speaker, -
GETTING INVOLVED IN THE MARKETS? HOW OFTEN DOES THAT HAPPEN. >> WELL, THE COUNCIL IS STILL IN ITS EARLY STAGE OF IMPLEMENTING THE AUTHORITY CONGRESS...
00:53:57
Unidentified Speaker, -
OF AUTHORITIES. ONE IS SPECIFIC RESPONSIBILITY FOR THINGS LIKE DESIGNATING FINANCIAL MARKET UTILITIES THAT HAVE SYSTEMIC IMPLICATIONS. THAT'S A SPECIFIC...
00:56:20
Unidentified Speaker, -
MAINTAIN. >> I'M NOT TALKING ABOUT THE AUTHORITY. I'M TALKING ABOUT WHAT THEY DID. I RECOGNIZE THAT. >> BUT WHAT THE FED IS DOING IS WITH RESPONSIBILITY...
00:56:29
Unidentified Speaker, -
GAVE IT TO KEEP PRICES LOW AND STABLE OVER
00:56:34
Unidentified Speaker, -
TIME AND UNDIPLOMAT LOW -- UNEMPLOYMENT LOW OVER MANY TIE AND USING A SET OF TOOLS IN THE PUBLIC INTEREST TO ACHIEVE THOSE OBJECTIVES. I WOULD SAY THAT'S...
00:56:59
Unidentified Speaker, -
THROUGH THE BOND BROKERS WHERE THEY MAKE HUGE COMMISSIONS ON THIS? WOULDN'T THIS BE MUCH BETTER FOR THE AMERICAN TAXPAYER? >> FOR THE FED TO DIRECTLY...
00:57:13
Unidentified Speaker, -
BOND DEALERS AND I THINK THEY MAKE SOME COMMISSIONS ON THIS,
00:57:16
Unidentified Speaker, -
AND THEN THE FED GOES OUT AND BUYS THESE BONDS AND BOND DEALERS MAKE MONEY OFF THIS. >> WELL, LET ME BE CAREFUL IF ANSWERING THAT QUESTION. LET ME TELL...
00:57:31
Unidentified Speaker, -
TO TRY TO MAKE SURE THE FED IS INDEPENDENT OF POLITICS BUT ALSO TO MAKE SURE THERE'S NOTHING IN THIS RELATIONSHIP BETWEEN THE FED AND THE TREASURY ...
00:58:11
Unidentified Speaker, -
00:58:15
Unidentified Speaker, -
00:58:18
Unidentified Speaker, -
SEPARATED, WHAT WOULD THAT HAVE MEANT FOR AIG, FOR BEAR STEARNS, FOR LEHMAN, FOR WACHOVIA, ALL OF THE BIG BANKS. BUT I WANT TO USE MY TIME TODAY ON CRISES...
00:59:09
Unidentified Speaker, -
WORLD. >> AND WAS IT SET BY A ASSOCIATION OR PROFESSIONALS IN THE UNITED STATES OR ELSEWHERE? WHO SET IT. >> NO, IT WAS SET BY THE BRITISH BANKERS...
00:59:18
Unidentified Speaker, -
WHICH IS A GROUP OF BANKS. >> OKAY. WERE YOU AWARE OF ANY OTHER MEMBERS OF THE PRESIDENT'S WORKING
00:59:24
Unidentified Speaker, -
GROUP FOLLOWING
00:59:27
Unidentified Speaker, -
THIS ISSUE? >> WELL, AS I SAID, WE BRIEFED THAT BROADER SET OF RELEVANT AGENCIES SO THEY WERE AWARE OF IT. THESE REPORTS ARE IN THE PUBLIC DOMAIN....
00:59:36
Unidentified Speaker, -
THE CFTC STARTED AT THAT TIME AT A VERY FAR-REACHING TO THEIR CREDIT INVESTIGATION ULTIMATELY INVOLVED A RANGE OF OTHER AUTHORITIES. >> WELL, DID THE...
00:59:56
Unidentified Speaker, -
YORK FED HAS A RANGE OF AUTHORITY. BUT THE ENFORCEMENT POWERS OF THE FED RESTS WITH THE BOARD OF GOVERNORS IN
01:00:04
Unidentified Speaker, -
WASHINGTON. NOT WITH THE INDIVIDUAL RESERVE BANKS. BUT THE OTHER AGENCIES THAT ARE PART OF OUR SYSTEM, AND IT'S A COMPLICATE THE SYSTEM AS MANY OF...
01:00:29
Unidentified Speaker, -
THE NEW YORK FED AT THE TIME. >> I DON'T -- I DON'T THINK THE
01:00:34
Unidentified Speaker, -
SECRETARY OF THE TREASURY THEN
01:00:36
Unidentified Speaker, -
OR NOW HAS DIRECT ENFORCEMENT AUTHORITY THAT IS RELEVANT TO THAT, THAT CONGRESS
01:00:40
Unidentified Speaker, -
HAS GIVEN THAT AUTHORITY TO OTHER AGENCIES WHICH IS APPROPRIATE. >> COULD YOU HAVE TAKEN ACTION AGAINST BARCLAY'S AT THE NEW YORK FED. >> AT THE NEW...
01:00:51
Unidentified Speaker, -
WOULD EXPECT, I BELIEVE WE DID THE NECESSARY APPROPRIATE
01:00:54
Unidentified Speaker, -
THING VERY EARLY IN THE PROCESS. >> UH-HUH. >> WELL, COULD YOU PUT THIS IN CONTEXT IN TERMS OF THE OTHER THINGS THAT YOU
01:01:03
Unidentified Speaker, -
WERE WORKING ON IN
01:01:05
Unidentified Speaker, -
2008? I KNOW THAT I WAS GETTING CALLS FROM MY CONSTITUENTS SCREAMING THAT THERE WAS A RUN ON THE MARKETS. THERE WAS A FEAR OF A COMPLETE FINANCIAL MELTDOWN....
01:01:36
Unidentified Speaker, -
PRESSURES ON THE FINANCIAL SYSTEM HERE AND AROUND THE WORLD WERE VERY ACUTE AND THEY WERE CREATING THE REAL RISK OF A BROADER RUN, BROADER COLLAPSE...
01:02:18
Unidentified Speaker, -
COUNTRY? WHAT DID IT COST AMERICAN FAMILIES? AND WHAT WOULD HAPPEN IF WE HAD YET ANOTHER DEBT CEILING CRISIS, IF WE WENT OVER THE CLIFF AGAIN? IN TERMS...
01:02:53
Unidentified Speaker, -
OF 2011 WAS VERY DAMAGING. IT CAUSED ECONOMIC GROWTH TO SLOW AT A VERY EARLY VULNERABLE TIME IN RECOVERY. IT CAUSED STOCKS PRICES TO FALL SHARPLY DOING...
01:03:35
Unidentified Speaker, -
SERVICE. >> CHAIR RECOGNIZES THE GENTLEMAN FROM NORTH CAROLINA, MR. JONES, FOR FIVE MINUTES. >> MR. CHARP, THANK YOU VERY MUCH. AND MR. SECRETARY,...
01:03:43
Unidentified Speaker, -
BEING HERE TODAY AND I'VE SAID MANY TIMES IN MY
01:03:46
Unidentified Speaker, -
DISTRICT AND HERE IN WASHINGTON THAT THE TWO WORST VOTES I MADE IN THE 1 YEARS I'VE BEEN IN CONGRESS WERE THE IRAQ WAR WHICH WAS VERY UNNECESSARY AND...
01:05:43
Unidentified Speaker, -
FUTURE AGAIN. AND THAT'S AN APPROPRIATE THING TO DO, BUT THE REFORMS CONGRESS ENACTED WERE VERY TOUGH AND VERY STRONG AGAINST JUST THE RISKS YOU SAID....
01:07:18
Unidentified Speaker, -
OF THE FEW REPUBLICANS TO VOTE FOR DODD-FRANK. IT WAS A DECISION THAT I MADE THAT THERE WAS MORE GOOD THAN BAD IN THAT LEGISLATION, AND THAT IF IT...
01:08:39
Unidentified Speaker, -
TO GO BACK TO, HOW DID YOU FIND OUT ABOUT
01:08:44
Unidentified Speaker, -
THE MANIPULATION OF BARCLAY'S AND THE LIBOR MANIPULATION? HOW DID YOU FIRST FIND OUT ABOUT IT? >> WELL, AS I SAID EARLIER, ARE THERE WAS A LOT OF CONCERN...
01:08:58
Unidentified Speaker, -
ULTIMATELY PUBLISHED IN MAJOR NEWSPAPERS OF RECORD, ABOUT NOT JUST THE POTENTIAL THAT BANKS COULD MISREPRESENT WHAT THEY WERE PAYING TO BORROW, BUT...
01:09:27
Unidentified Speaker, -
SPENDS A LOT OF TIME TALKING TO PEOPLE IN THE FINANCIAL MARKETS
01:09:30
Unidentified Speaker, -
ABOUT WHAT'S GOING ON. SO IT'S THE BASIS ON THOSE REPORTS NOT JUST WHAT WAS IN THE PRESS. >> OKAY. AND SO WHAT YOU DID IS WHAT DID YOU DO AS A CONSEQUENCE...
01:09:45
Unidentified Speaker, -
01:10:00
Unidentified Speaker, -
01:10:24
Unidentified Speaker, -
01:10:27
Unidentified Speaker, -
THE RECOMMENDATIONS AND WOULD PURSUE THEM. >> TO THE BEST OF YOUR KNOWLEDGE, THE INVESTIGATION THAT LED TO THE $453 MILLION FINE AGAINST BARCLAY'S...
01:10:41
Unidentified Speaker, -
THE CONTINUING INVESTIGATION BEGAN BEGINS WHERE? >> WELL, THAT'S A QUESTION YOU SHOULD REFER TO THE CFTC. I BELIEVE THEY'VE SAID PUBLICLY THEIR INVESTIGATION...
01:10:52
Unidentified Speaker, -
THE SAME TIME PERIOD IN APRIL 2008. >> SO IF WE LOOK AT THE INVESTIGATION THAT LEADS TO THE FINE IT, BEGINS AT THE MOMENT IN WHICH YOU ARE MADE AWARE...
01:11:02
Unidentified Speaker, -
HEAD OF THE NEW YORK RESERVE AND CARRY OUT YOUR RESPONSIBILITIES AND THEN YOU INFORM THE SECRETARY OF THE TREASURY A JOB THAT YOU CURRENTLY HOLD OF THIS...
01:11:36
Unidentified Speaker, -
THOSE THAT ARE IN THE PUBLIC DOMAIN AT THE TIME WHY SUFFICIENT BASIS TO INITIATE THIS VERY FAR-REACHING INVESTIGATION. >> I WANT TO HAVE ASK ABOUT THE...
01:11:54
Unidentified Speaker, -
STATES, PROMOTE MARKET DISCIPLINE BY ELIMINATING EXPECTATION OF GOVERNMENT BAILOUT, RESPOND TO EMERGING THREATS TO THE U.S. FINANCIAL SYSTEM. TELL...
01:12:21
Unidentified Speaker, -
INVOLVES A LOT OF DIFFERENT AGENCIES. THEY SHARE A LOT OF RESPONSIBILITIES. AND THEY'RE WRITING A SET OF RULES THAT ARE VERY COMPLICATED BY DEFINITION...
01:13:04
Unidentified Speaker, -
MAYBE I GAVE THE WRONG QUESTION. >> I THINK YOU HAVE TO STEP BACK AND LOOK AT THE SCALE OF THE OF CHANGES THAT HAVE BEEN PUT IN PLACE IN OUR SYSTEM,...
01:13:15
Unidentified Speaker, -
MEASURES WE TOOK TO IN THE FINANCIAL EMERGENCY BUT IN THE REFORMS. JUST TAKE A FEW EXAMPLES OF THAT. $400 BILLION MORE CAPITAL IN THE SYSTEM TODAY. ...
01:13:42
Unidentified Speaker, -
WHAT WE DID IN THE CRISIS. THE DERIVATIVES COMPLICATED CHALLENGES IN
01:13:48
Unidentified Speaker, -
DERIVATIVES. THESE AGENCIES HAVE MADE MAJOR MORNING PROGRESS IN LAYING OUT A SWEEPING SET OF COMPREHENSIVE REFORMS THAT BRING MORE TRANSPARENCY TO...
01:15:22
Unidentified Speaker, -
HERE. WHICH REGULATOR DROPPED THE
01:15:25
Unidentified Speaker, -
BALL WITH REGARD TO AIGING? WHICH REGULATOR WAS IN CHARGE OF REGULATING AIG FP WHICH IS THE AIG DIVISION THAT ENGAGED IN THE NONEXISTENT RISK MANAGEMENT...
01:16:01
Unidentified Speaker, -
VERY COMPLICATED GLOBAL SYSTEM. YOU'RE RIGHT TO SAY THE OTS DID HAVE SOME -- SOMEWHAT BROADER RESPONSIBILITY ALONGSIDE OF THE STATES. BUT I DO NOT BELIEVE...
01:16:27
Unidentified Speaker, -
A PRETTY DAMNING REPORT ABOUT AIG OVERSIGHT. FOUND MORE FOR THAN TWO YEARS, AIG HAS HAD NO CONSOLIDATED BANKING REGULATOR OF ITS NONINSURANCE FINANCIAL...
01:18:13
Unidentified Speaker, -
TO DESIGNATE A NONBANK FINANCIAL INSTITUTION THAT COULD CAUSE BROADER DAMAGE TO THE SYSTEM LIKE AIG TO GIVE THE COUNCIL THE AUTHORITY TO DESIGNATE...
01:19:05
Unidentified Speaker, -
OF REGULATING AIG RIGHT NOW? >> WHAT THE CONGRESS DOES IS GIVE THE COUNCIL AND ULTIMATELY THE FED IF THE COUNCIL DESIGNATES THAT FIRM THAT AUTHORITY....
01:19:15
Unidentified Speaker, -
THERE IS NO REGULATOR NO YOU? >> UNDER THE LAWS OF THE LAND RIGHT NOW, THAT'S TRUE. THAT'S THE WAY OUR SYSTEM WORKED. THAT'S WHY IN DODD FRANK WE
01:19:22
Unidentified Speaker, -
ASKED FOR THE AUTHORITY TO MAKE SURE WE COULD
01:19:24
Unidentified Speaker, -
DESIGNATE AND MAKE SURE WE USE THAT AUTHORITY CAREFULLY. AS YOU KNOW, AND MANY OF YOUR COLLEAGUES REFERRED TO THIS, WHEN YOU THINK ABOUT HOW TO ...
01:19:53
Unidentified Speaker, -
THE PLAN TO SIG T.A.R.P. AND TO CONGRESS. >> HAPPY TO BRIEF YOU. LET ME JUST SAY IT BRIEFLY. WE HAVE OUR REMAINING FINANCIAL EXPOSURE TO AIG OF THE TAXPAYER...
01:20:03
Unidentified Speaker, -
THE FORM ONLY MUCH EQUITY NOW. WE HAVE SOLD A LARGE CHUNK OF THAT. WE'VE PLANNED TO SELL AS MUCH AS WE CAN AS SOON AS WE CAN BECAUSE WE WANT NOTHING...
01:20:43
Unidentified Speaker, -
HAPPY TO RESPOND AND LAY OUT WHAT OUR BROAD
01:20:46
Unidentified Speaker, -
VIEW OF HOW WE GET OUT OF OUR YOUR REMAINING, HE POSH. >>
01:20:51
Unidentified Speaker, -
CHAIR RECOGNIZES THE GENTLEMAN FROM NEW YORK, MISS VELASQUEZ FOR FIVE MINUTES. >> THANK YOU, SECRETARY GEITHNER FOR YOUR
01:20:59
Unidentified Speaker, -
SERVICE. SOME STAKEHOLDERS HAVE ALLEGED THE
01:21:04
Unidentified Speaker, -
LIBOR MANIPULATION TO THE AT THE TIMERIMENT OF REGIONAL AND COMMUNITY BANKS. AS YOU KNOW, COMMUNITY BANKS ARE SIGNIFICANT SOURCE OF SMALL BUSINESS LENDING...
01:22:08
Unidentified Speaker, -
GOING REVIEW BY A BUNCH OF AGENCIES THAT SHOULD BE TAKING A LOOK AT IT. I THINK IT WILL TAKE A LITTLE TIME FOR THEM TO GIVE YOU A GOOD ANSWER TO THAT...
01:22:28
Unidentified Speaker, -
INCLUDING MORTGAGES AND SMALL BUSINESS LOANS. WHAT IMPACT WILL THE LIBOR SCANDAL HAVE ON ACCESS TO SMALL BUSINESSES. >> I DON'T THINK IT WILL BE MATERIAL...
01:22:47
Unidentified Speaker, -
IN THE FINANCIAL
01:22:52
Unidentified Speaker, -
SECTOR. >> TOUGH RULES AND GIVE PEOPLE THE RESOURCES TO ENFORCE THE RULES AND WHERE THEY FIND EVIDENCE OF
01:23:02
Unidentified Speaker, -
BAD BEHAVIOR THEY SHOULD BE PUNISHED FOR IT. THAT'S WHAT IT IS GOING TO TAKE AND I WOULD SAY THE OBVIOUS, WE HAVE A AS THE UNITED STATES AND THE INSTITUTIONS...
01:23:33
Unidentified Speaker, -
01:23:34
Unidentified Speaker, -
WELCOME. GOOD TO HAVE YOU WITH US AGAIN. THE FINANCIAL RESEARCH COMPREHENSIVE
01:23:38
Unidentified Speaker, -
STUDY ON THE MANAGEMENT INDUSTRY ANALYZING THE EXTENT TO WHICH SUCH FIRMS MIGHT POST SYSTEMIC RISK AND I SENT YOU A LETTER IN MID-JUNE AND I WOULD LIKE...
01:24:07
Unidentified Speaker, -
TO DO WITH THEIR DESIGNATION AUTHORITY FOR THAT MIX OF INSTITUTIONS IF ANYTHING. WHAT THEY'RE DOING RIGHT NOW IS TO TAKE ADVANTAGE OF ALL THE PUBLIC...
01:24:42
Unidentified Speaker, -
FSOC TO CONIFER WITH FEDERAL REGULATORS AND CRAFTED WITHOUT EFFECTIVE INTERNATIONAL COORDINATION WILL INCREASE COST, CONFUSION AND COMPLEXITY AND...
01:25:19
Unidentified Speaker, -
FIRMS HIGHER CAPITAL REQUIREMENTS AGAINST THE RISK THEY TOLD. THEY'RE FORCED TO HOLD MORE CAPITAL AGAINST RISK AND IT SEEMS SENSIBLE AND FAIR. WHAT...
01:26:00
Unidentified Speaker, -
IS GOING TO BE DETRIMENTAL TO OUR ECONOMY. >> EXACTLY N
01:26:03
Unidentified Speaker, -
THIS AREA AND MANY OTHERS IF YOU END UP RAISING STANDARDS IN THE UNITED
01:26:07
Unidentified Speaker, -
STATES,
01:26:10
Unidentified Speaker, -
AND LEAVING THEM LOWER AND WEAKER OUTSIDE THE UNITED STATES, THEN RISK WILL SHIFT TO THOSE MARKETS AND IT WILL ULTIMATELY HURT US, TOO. >> RECENT RULE...
01:26:25
Unidentified Speaker, -
AND CRITICIZED AS CON SPIG LUSLY BANK CENTERED AND UNWORKABLE. WHAT ACTIONS DO YOU THINK THE FED PRUDENTIAL REGULATION NEEDS TO TAKE TO TREAT INSURERS...
01:26:58
Unidentified Speaker, -
WHERE THEY HAD TO APPLY THESE BROAD STANDARDS ON CAPITAL LEVERAGE TO A FINANCIAL INSTITUTION THAT INCLUDES AN INSURANCE COMPANY, THEY WOULD HAVE TO...
01:28:28
Unidentified Speaker, -
SURE IT IS IMPLEMENTED. I
01:28:30
Unidentified Speaker, -
YIELD BACK. THANK YOU. >> GENTLEMAN FROM NORTH CAROLINA. >> THANK YOU, MR. CHAIRMAN AND SECRETARY FOR BEING HERE. MR. SECRETARY, HAVE YOU GOTTEN A...
01:28:32
Unidentified Speaker, -
01:28:41
Unidentified Speaker, -
01:28:42
Unidentified Speaker, -
KERING IF YOU WOULD SEND ME OR TELL ME WHERE I CAN ACCESS WHAT THESE RECOMMENDED REFORMS ARE SO THAT WE CAN TAKE A CLOSER LOOK AT THEM. I WON'T DWELL...
01:32:22
Unidentified Speaker, -
IT. I WOULD SAY THAT WE HAVE BEEN AND THE PRESIDENT HAS BEEN VERY CLEAR THAT EVEN THOUGH AS PART OF OUR EFFORT TO SAVE THIS INDUSTRY IN THE CRISIS...
01:32:57
Unidentified Speaker, -
WE WOBT HAVE A DOMESTIC INDUSTRY IF WE HAD NOT DONE THAT IN MY OPINION. I AM NOT QUESTIONING THAT. THE INSPECTOR GENERAL SAYS THE GOVERNMENT HAS HAD...
01:33:46
Unidentified Speaker, -
FIVE MINUTES. >>
01:33:47
Unidentified Speaker, -
THANK YOU, MR. CHAIRMAN, AND MR. SECRETARY.
01:33:49
Unidentified Speaker, -
MR. SECRETARY, I HEAR ALL OF THIS AND ON THE LIBOR SITUATION YOU CAN'T HAVE YOUR CAKE AND EAT IT,
01:33:54
Unidentified Speaker, -
TOO. YOU HAVE BEEN BEFORE THIS COMMITTEE COUNTLESS NUMBER OF TIMES SINCE 2008 AND IF THIS IS THE CRIME OF THE CENTURY AS SO MANY PEOPLE ARE REPORTING...
01:36:12
Unidentified Speaker, -
THAT PROCESS VERY EARLY. >> YOU TOLD CONGRESS ABOUT THIS? >> LET ME EXPLAIN WHAT WE DID. AGAIN, WHAT WE DID AND AGAIN THESE CONCERNS WERE
01:36:21
Unidentified Speaker, -
IN THE PUBLIC DOMAIN. >> I UNDERSTAND. >> NO, IT IS NOT WHAT
01:36:24
Unidentified Speaker, -
I AM SAYING. I AM SAYING WE DID NOT TAKE FULL RESPONSIBILITY FOR THIS IS THAT HAVING LOOKED
01:36:30
Unidentified Speaker, -
INTO THESE CONCERNS
01:36:31
Unidentified Speaker, -
AND BELIEVED THEY WERE A PROBLEM, WE TOOK THE INITIATIVE TO BRIEF THE BROADER REGULATORY COMMUNITY SO THEY HAD THAT INFORMATION EVEN THOUGH IT WAS...
01:36:54
Unidentified Speaker, -
01:37:12
Unidentified Speaker, -
01:37:21
Unidentified Speaker, -
01:37:22
Unidentified Speaker, -
WAY THE SYSTEM WORKS. >> THE SAME JUSTICE DEPARTMENT THAT THE CHAIRMAN ASKED YOU WHETHER YOU NOTIFIED AND YOU INDICATED THEY WERE NOT AT THE TABLE SO...
01:37:40
Unidentified Speaker, -
THERE IS ALWAYS SO MUCH FINGER POINTING BY THE REGULATORS AFTER THE FACT. LET ME TURN TO WHAT YOU'RE HERE FOR TODAY, THE NON-BANK DESIGNATION. WE HAVE...
01:38:49
Unidentified Speaker, -
YOU SAID. I DON'T THINK OUT OF RESPECT FOR YOUR CONCERNS DON'T THINK YOU ARE RIGHT TO BELIEVE THAT DESIGNATION ITSELF WILL CONIFER A FINANCIAL ADVANTAGE....
01:39:54
Unidentified Speaker, -
HERE. BRITISH BANKS LIED TO THE BRITISH BANKING
01:39:59
Unidentified Speaker, -
ASSOCIATION. THE BANK OF ENGLAND AND OTHER BRITISH REGULATORS SCREWED UP AND DIDN'T CATCH THEM. EVEN THOUGH THEY GOT EXTRAORDINARY OUTSIDE HELP FROM...
01:42:12
Unidentified Speaker, -
THE CHALLENGE, THOUGH, IS NOT FINDING A RATE THAT CAPTURES THE GOVERNMENT'S COST OF FUNDS. THE CHALLENGE IS TRYING TO FIGURE OUT HAD WHAT'S A WAY TO...
01:42:49
Unidentified Speaker, -
COULD RELEASE THIS AND THERE ARE GOING TO BE COURT CASES WHERE PEOPLE GO IN AND SEEK MODIFICATION OF CONTRACTS OR PROSPECTIVELY OR RETROACTIVELY...
01:44:35
Unidentified Speaker, -
REPAIR THE REMAINING DAMAGE IN THE HOUSING MARKET. I THINK OUR OVERWHELMING OBLIGATION NOW STILL IS TO BE DOING EVERYTHING WE CAN TO GET PEOPLE A...
01:45:30
Unidentified Speaker, -
SECRETARY, I WANT TO
01:45:33
Unidentified Speaker, -
GO BACK TO APRIL OF 2008 AND I THINK THAT'S WHEN YOU WERE PRESIDENT OF THE FEDERAL RESERVE BANK IN NEW YORK. YOU FIRST ADDRESSED OR STARTED ADDRESSING...
01:46:14
Unidentified Speaker, -
2008, BUT IN RESPONSE TO YOUR REQUEST, THE NEW YORK FED, MY COLLEAGUES ARE GOING BACK AND LOOKING AT THE FULL RANGE OF THINGS AVAILABLE AND WE WILL SHARE...
01:46:32
Unidentified Speaker, -
DISCLOSURE. BASICALLY I THOUGHT WHAT YOU MADE IN I THINK FIVE OR SIX BULLET POINTS THERE, SOME STRUCTURAL RECOMMENDATIONS OF HOW MAYBE LIBOR COULD...
01:47:31
Unidentified Speaker, -
BY THE BRITISH BANKERS ASSOCIATION WHICH BECAUSE OF ITS DESIGN CREATED NOT JUST THE INCENTIVE TO UNDER REPORT BUT THE OPPORTUNITY TO DO THAT. THAT...
01:49:03
Unidentified Speaker, -
THAT PROMPTED THEM TO OPEN UP AN ENFORCEMENT ACTION, BUT IT WASN'T JUST A BRITISH PROBLEM. I MEAN, YOU KNOW WELL AND YOU HAVE BEEN INVOLVED IN THE...
01:49:51
Unidentified Speaker, -
CURRENCIES, AND THAT'S WHY WE DID WHAT WE DID. WE DID NOT VIEW THIS AS SOMETHING THAT WAS SOME SMALL ISOLATED PROGRAM WITH THE IMPACT LIMITED TO LONDON...
01:50:28
Unidentified Speaker, -
LAST CONVERSATION OR LAST MEMO? >> WE DID AND MY COLLEAGUES DID AND THE BRIT IRK BANKERS ASSOCIATION AT THREE SEPARATE POINTS I THINK AFTER WE ACTED...
01:50:39
Unidentified Speaker, -
CHANGES TO THAT PROCESS BUT OBVIOUSLY WE DON'T THINK THEY WENT FAR ENOUGH. >> GENTLEMAN'S TIME EXPIRED. CHAIR RECOGNIZES THE GENTLEMAN FROM NEW YORK...
01:50:56
Unidentified Speaker, -
I THINK THAT IN THE AREA OF MR. SHERMAN
01:51:00
Unidentified Speaker, -
WAS TALKING ABOUT AND I UNDERSTAND AND AGREE TO LIBOR IS VERY IMPORTANT BUT WHAT I FOUND TO BE A CONTINUING DIVIDE BETWEEN WALL STREET AND MAIN STREET...
01:52:50
Unidentified Speaker, -
THOSE CAREFULLY IN THIS CONTEXT. I DO THINK IT IS IMPORTANT TO RECOGNIZE THAT THERE IS A BROAD RANGE OF OTHER TOOLS AVAILABLE FOR STATES PARTLY BECAUSE...
01:53:45
Unidentified Speaker, -
PART OF THAT SAME PIECE WALL STREET/MAIN STREET IS BANKS LENDING MONEY, AND THERE WAS ANOTHER ARTICLE THAT WAS IN THE WALL STREET JOURNAL I THINK BY...
01:54:45
Unidentified Speaker, -
GENERAL VIEW ON THIS. THE ECONOMY IS NOT GROWING FAST ENOUGH. UNEMPLOYMENT IS VERY HIGH. HUGE AMOUNT OF DAMAGE LEFT IN THE HOUSING MARKET. AMERICANS...
01:56:10
Unidentified Speaker, -
RECORD TO FOLLOW UP TO VICE CHAIRMAN
01:56:16
Unidentified Speaker, -
HENSARLING AND THE QUESTION ABOUT THE LIBOR ISSUE, IT WAS ABOUT THREE MONTHS LATER THAT AFTER THE LIBOR ISSUE CAME TO NOTE AND YOU SHARED THIS INFORMATION...
01:56:56
Unidentified Speaker, -
AROUND THE WORLD, YES. >>
01:56:57
Unidentified Speaker, -
A SIGNIFICANT IMPACT. >> YES. >>
01:57:01
Unidentified Speaker, -
SO IN THE FSOC REPORT YOU SAY CONCERNING THE SPANISH FISCAL PERFORMANCE
01:57:05
Unidentified Speaker, -
CONCERNS ABOUT THE SPANISH FISCAL
01:57:07
Unidentified Speaker, -
PERFORMANCE HAVE PERSISTED FUELLING DOUBTS ABOUT
01:57:10
Unidentified Speaker, -
THE PRUDENCE OF ADHERING TO STRICT BUDGET TARGETS AMID DEEPENING RECESSION. AS A RESULT YOU YOUR AREA OF FINANCE MINISTERS AGREED TO RELAXATION OF SPAIN'S...
01:57:56
Unidentified Speaker, -
WHY. YOU ARE RIGHT TO REMIND US ALL THAT IF YOU HAVE UNSUSTAINABLE DEFICITS OVER TIME YOU LEAVE THEM UNADDRESSED AND IT WILL HURT YOU ECONOMICALLY...
01:58:31
Unidentified Speaker, -
NO COMPARISON TO
01:58:32
Unidentified Speaker, -
WHAT'S APPROPRIATE FOR US. >> SO, YOU KNOW, DO YOU BELIEVE THAT THE ISSUES AND THE EUROZONE ARE GOING TO GET WORSE BEFORE THEY GET BETTER? >> DEPENDS...
01:58:42
Unidentified Speaker, -
THEY MAKE GOING FORWARD. THEY'RE DOING A SET OF IMPORTANT NECESSARY TOUGH THINGS ON THE REFORM SIDE TO MAKE THE ECONOMIES WORK
01:58:49
Unidentified Speaker, -
BETTER, MORE COMPETITIVE, BUT ALSO TO MAKE SURE THAT THE INSTITUTIONS OF EUROPE OVER TIME CREATE BETTER FISCAL DISCIPLINES AND BETTER MANAGEMENT OF...
01:59:24
Unidentified Speaker, -
THAN IT WAS IN SPAIN WHEN THEIR TEN-YEAR SPANISH SOVEREIGN JACKED UP TO 7% WHEN ALL OF THIS ACTION TOOK PLACE, SO DO YOU THINK THAT THE MARKETS ALREADY...
01:59:51
Unidentified Speaker, -
CAN TELL IS THE MARKET EVERY DAY IS MAKING A
01:59:55
Unidentified Speaker, -
NEW ASSESSMENT ABOUT WHETHER THE
01:59:57
Unidentified Speaker, -
EUROPEAN LEADERS ARE GOING TO DO ENOUGH TO HOLD IT TOGETHER. THEY HAVE COMMITTED TO TOO THAT. THEY SAID THAT'S THEIR INTENTION, THEIR PLANS. THEY HAVE...
02:00:13
Unidentified Speaker, -
THE EUROZONE DEBT CRISIS AND I KNOW THERE HAVE BEEN NUMEROUS SUMMITS AND YOU'RE FREQUENTLY THERE. YOU'RE SPENDING A SIGNIFICANT AMOUNT OF TIME ON THE...
02:00:30
Unidentified Speaker, -
A BREATHEN WOOD STYLE LARGE ACTIONS BY THE WORLDS TO TAKE ON THIS ISSUE? WHAT IS THE OBAMA ADMINISTRATION'S PLAN? YOU SAID IT IS A SIGNIFICANT IMPACT...
02:00:31
Unidentified Speaker, -
02:00:53
Unidentified Speaker, -
DOING IS TRY TO PUT PRESSURES IS THE WRONG WORD, TO PUT, WELL, I WILL USE IT, TO PUT AS MUCH PRESSURE AS WE CAN ON THEM TO MOVE MORE QUICKLY AND CREDIBLY...
02:01:52
Unidentified Speaker, -
THANK YOU. HEARD A LOT OF PEOPLE NOW WHO OBVIOUSLY THINK SOME PEOPLE THINK YOU DIDN'T DO ENOUGH IN 2008. THAT'S GREAT. IT KIND OF STRIKES
02:01:59
Unidentified Speaker, -
ME THAT THESE ARE THE VERY SAME PEOPLE THAT THOUGHT YOU WERE DOING TOO MUCH PROBABLY MOST OF THE TIME. THEY DON'T LIKE ANY REGULATION. THEY ARE CURRENTLY...
02:02:38
Unidentified Speaker, -
COMPELLING EVIDENCE IN THE FINANCIAL CRISIS OF THE DAMAGE YOU CAN DO TO THE AVERAGE AMERICAN WHEN YOU ALLOW A SYSTEM TO OUT GROW ANY SENSIBLE SET OF...
02:03:28
Unidentified Speaker, -
NEED THE SUPPORT OF THIS COMMITTEE AND THIS
02:03:30
Unidentified Speaker, -
CONGRESS TO PUT THESE RULES IN PLACE AND MAKE SURE THESE AGENCIES HAVE THE RESOURCES THEY NEED TO ENFORCE THEM. >> ON ANOTHER MATTER, JUST CURIOUS,...
02:03:43
Unidentified Speaker, -
02:04:07
Unidentified Speaker, -
THERE IS MUCH LESS CONFIDENCE IN MARKETS AND THIS IS A GOOD THING FUNDAMENTALLY THAT CONGRESS OR THE ADMINISTRATION IN THE FUTURE WOULD COME IN AND...
02:04:48
Unidentified Speaker, -
TODAY AND I HAPPEN TO AGREE AND I VOTED GO ENS THAT REPEAL AND I WISH THEY HAD VOTED GO ENS THAT REPEAL AS WELL. THEY DIDN'T. OBVIOUSLY THE LIBOR MATTER...
02:06:57
Unidentified Speaker, -
FOLLOWING. IT IS VERY IMPORTANT TO THIS COUNTRY THAT WE HAVE IN PLACE A VERY TOUGH ENFORCEMENT REGIME SO THAT PEOPLE WHO VIOLATE THE LAW ARE HELD ACCOUNTABLE...
02:07:52
Unidentified Speaker, -
SECRETARY, FOR BEING
02:07:54
Unidentified Speaker, -
HERE. AS YOU RESPOND TO MS. MALONEY
02:07:58
Unidentified Speaker, -
ON THE QUESTIONS ABOUT SEPARATION OF THE INVESTMENT BANK FROM THE INDEPENDENT COMMUNITY BANKERS I WOULD LIKE TO BE INCLUDED IN THAT WRITTEN RESPONSE....
02:10:35
Unidentified Speaker, -
IN A MUCH STRONGER PLACE THAN IT WAS WHEN THE PRESIDENT TOOK OFFICE. I THINK BY EVERY MEASURE WE ARE IN A DRAMATICALLY STRONGER PLACE AND A MUCH BETTER...
02:12:06
Unidentified Speaker, -
TRENDS ARE UNSUSTAINABLE. IN YOUR WRITTEN TESTIMONY YOU TALK ABOUT THE FACT THAT THE BUDGETS ARE BEING CUT, THAT GOVERNMENT SPENDING IS BEING CUT AS...
02:12:35
Unidentified Speaker, -
BE. IT IS ALSO TRUE OF COURSE OUR LONG-TERM DEFICITS ARE UNSUSTAINABLE AND WOULD BE GOOD FOR THE COUNTRY TO HAVE CONGRESS -- >> WHY ARE THEY UNSUSTAINABLE?...
02:12:50
Unidentified Speaker, -
TO BE TOO LARGE AND ULTIMATELY -- >> LET ME FINISH
02:12:54
Unidentified Speaker, -
UP HERE. JUST GOT A SECOND. I NOTICE THAT YOU SPENT A LOT OF TIME AND VERY STRONG WORDS TALKING
02:13:01
Unidentified Speaker, -
ABOUT THE DEBT DISCUSSION, THE DEBT CEILING DISCUSSION, BUT ALMOST NO TIME TALKING ABOUT DEBT AND I THINK THAT'S A HUGE INDICATION OF WHERE YOU ARE....
02:13:17
Unidentified Speaker, -
MR. LYNCH, FOR FIVE FINMINUTES. >> THANK YOU, MR. CHAIRMAN. MR. SECRETARY, I WANT TO THANK YOU AS WELL. THERE IS A DOCUMENT REFERRED TO A NUMBER OF...
02:13:28
Unidentified Speaker, -
LET ME FIRST ASK YOU, THIS IS REGARDING YOUR RESPONSE BACK IN 2008 WHEN I BELIEVE IT WAS IN APRIL OF 2008 THERE WERE A SERIES OF ARTICLES THAT CAME...
02:14:23
Unidentified Speaker, -
YOU INFORMED THEM YOU ALSO I HAVE A DOCUMENT THAT HAS BEEN MENTIONED A FEW TIMES, A MEMO. IT IS DATED
02:14:30
Unidentified Speaker, -
6-1-2008, 5 P.M., AND IT IS A COVER PAGE THAT SAYS IT WAS ACTUALLY DELIVERED THE PREVIOUS TUESDAY. IT IS ADDRESSED TO MERVYN KING. WAS HE THE GOVERNOR...
02:14:53
Unidentified Speaker, -
TO PUT A FINE POINT ON THIS BECAUSE YOU HAVE TALKED
02:14:57
Unidentified Speaker, -
ABOUT YOUR RESPONSE, BUT IN SUBSEQUENT QUESTIONS IT SEEMS TO BE IGNORED. I JUST WANT TO MAKE SURE THIS GOES INTO THE RECORD AND THAT WE HAVE A CLEAR...
02:16:00
Unidentified Speaker, -
THE COMPOSITION OF THE U.S. DOLLAR PANEL, ADD A SECOND U.S. DOLLAR LIBOR FIXING FOR THE U.S. MARKET, SPECIFY TRANSACTION SIZE, ONLY REPORT THE LIBOR ...
02:16:42
Unidentified Speaker, -
FROM SECRETARY -- ACTUALLY BACK THEN THE HEAD OF THE FEDERAL RESERVE BANK OF NEW YORK TO THE GOVERNOR OF THE BANK OF ENGLAND BE ACCEPTED INTO THE...
02:17:03
Unidentified Speaker, -
AND I CAN'T LAY MY HANDS ON IT, BUT IT TALKED
02:17:07
Unidentified Speaker, -
ABOUT THE FACT THAT A LOT OF THE REQUESTS FOR MANIPULATING LIBOR CAME FROM TRADERS WHO ARE ASKING TO LOWER LIBOR AS OPPOSED TO COMING FROM LENDERS ASKING...
02:19:01
Unidentified Speaker, -
MITIGATE RISK, HAPPY TO RESPOND MORE TO THE MEMBER'S QUESTIONS. >> THANK YOU, MR. SECRETARY. I YIELD BACK. >> GENTLEMAN'S TIME EXPIRED. CHAIR ROIRZS...
02:19:13
Unidentified Speaker, -
FITZPATRICK FOR FIVE MINUTES. >> THANK YOU, MR.
02:19:15
Unidentified Speaker, -
SECRETARY, FOR YOUR TESTIMONY, YOUR TIME TODAY AND FOR THE REPORT. I WANTED TO FOLLOW UP ON THE QUESTIONS THAT MR.
02:19:22
Unidentified Speaker, -
PEARCE WAS ASKING REGARDING ANNUAL BUDGET DEFICITS AND THE GROWING NATIONAL DEBT. IN THE REPORT PAGE 8 ENTITLED POTENTIAL EMERGING THREATS TO UNITED...
02:20:15
Unidentified Speaker, -
ECONOMY. I AGREE IF LEFT UNADDRESSED THAT WOULD BE TRUE. >> HENRY MORGANTHAU JUNIOR, HE HAS BEEN OFTEN QUOTED RECENTLY AND ONE PARTICULAR QUOTE I WANT...
02:20:35
Unidentified Speaker, -
1930s WE'RE SPENDING MORE MONEY THAN WE HAVE EVER SPENT BEFORE AND IT DOES NOT WORK. I WANT TO SEE THIS COUNTRY PROSPEROUS. I WANT TO SEE PEOPLE GET...
02:21:16
Unidentified Speaker, -
WHAT CAUSED THE GREAT DEPRESSION BUT BECAUSE OF THE THINGS WE DID, WE WERE ABLE TO GET THE ECONOMY GROWING AGAIN MUCH MORE QUICKLY AND THE ECONOMY...
02:22:55
Unidentified Speaker, -
IN ORDER TO BRING THIS DOWN TO MANAGEABLE LEVELS, WOULDN'T PASSING DOWN THE BUDGET RESOLUTION, TO PUTTING THE DEFICITS UNDER CONTROL? >> I KNOW WHERE...
02:23:12
Unidentified Speaker, -
WON'T HAPPEN ON ITS OWN. IT'S NOT ENOUGH FOR US TO PROPOSE THINGS. CONGRESS HAS TO COME TOGETHER AND NEGOTIATE A FRAMEWORK, TO BRING THESE REFORMS....
02:23:31
Unidentified Speaker, -
GOVERNMENT FROM SPENDING $10 TRILLION SINCE THE IT PASSED A BUDGET RESOLUTION AND, THE STATEMENT INDICATING WHAT REASONABLE STEPS SUCH MEMBER BELIEVES...
02:24:04
Unidentified Speaker, -
02:24:23
Unidentified Speaker, -
02:24:24
Unidentified Speaker, -
02:24:32
Unidentified Speaker, -
THAT LIBOR WAS LIABLE TO MANIPULATION. IT'S ESSENTIALLY AN HONOR SYSTEM AND THEIR INCENTIVES TO THIS REPORT AND THERE WERE RUMORS AND THERE WERE REPORTS...
02:26:33
Unidentified Speaker, -
BE AWARE OF THAT. >> WHY NOT? BECAUSE THE CONCERN ABOUT THE STRUCTURE OF THE RATE
02:26:41
Unidentified Speaker, -
AND THE CONCERNS ACROSS THE MARKET WE THOUGHT WERE SUFFICIENT BASIS ON WHICH TO DO THE THINGS I SAID I DID -- >> MR. SECRETARY, THIS CONVERSATION IS...
02:26:57
Unidentified Speaker, -
TO MANIPULATION, BUT IN FACT, THAT IT WAS, IN FACT, BEING MANIPULATED THAT THERE WERE FALSE REPORTS BEING FOUND BY SOMEONE WHO WAS INVOLVED IN IT...
02:27:28
Unidentified Speaker, -
POINT, WE HAD A SUFFICIENT BASIS ON BASED ON WHAT THE MARKET WAS SAYING WAS HAPPENING AND THE WAY THIS THING IS DESIGNED ON WHICH TO TAKE THE ACTIONS...
02:27:44
Unidentified Speaker, -
LIKE IT THAT NOT JUST -- IT WAS WANT JUST THEORETICALLY POSSIBLE, BUT PARTICIPANTS IN LIBOR ADMITTED THAT THEY WERE, IN FACT, MISREPORTING AND THAT...
02:28:13
Unidentified Speaker, -
ABOUT THE RANGE OF DIFFERENT REPORTS THAT WERE OUT THERE, WE THOUGHT WERE CREDIBLE, THAT BANKS WERE ACTUALLY MISREPORTING AND IT WAS NOT ON THE BASIS...
02:28:55
Unidentified Speaker, -
THE NEW YORK FED STAFF DID IN TERMS OF WHO DID THAT. YOU DID NOT. >> YOU DID NOT. >> MR. SECRETARY, YOU ALSO SAID EARLIER THAT LITIGATION WAS CERTAINLY...
02:29:09
Unidentified Speaker, -
BEING CONTEMPLATED, AND
02:29:12
Unidentified Speaker, -
VARIOUS LENDERS WHO ARE NOW HAVE EITHER FOUND SUIT OR CONTEMPLATING LITIGATION AGAINST THE LIBOR BANKS FOR HAVING GOTTEN PAID TOO LITTLE INTEREST,...
02:29:44
Unidentified Speaker, -
WE ALSO DON'T KNOW WHAT THE NET EFFECT WAS OF THE BEHAVIOR ON THOSE PRICES AT THAT POINT AS MANY OF YOUR COLLEAGUES HAVE SAID. THERE ARE SOME PEOPLE...
02:30:32
Unidentified Speaker, -
REVISIT, I WAS WATCHING "SQUAWK BOX" THIS MORNING WHEN SANDY WEIL MADE HIS COMMENTS AND THEN SAW THE CRAWLER ABOUT GLASS STEAGALL, AND I WAS, LIKE,...
02:31:07
Unidentified Speaker, -
AND IT'S SOMETHING THAT PEOPLE WILL BE LOOKING AT THAT TIME FOR A LONG PERIOD OF TIME, BUT I DO THINK IT'S IMPORTANT TO RECOGNIZE THAT WE DID FORCE THESE...
02:32:19
Unidentified Speaker, -
FALLEN AND IT DOES STRIKE ME, THOUGH, THAT WHETHER IT'S DENMARK, SWITZERLAND, COUNTRIES OUT OF THE EUROZONE OR YOUR OWN MARKET, THE UNITED STATES,...
02:33:40
Unidentified Speaker, -
ALTHOUGH THAT MIGHT BE FOR THE FED, BUT THOSE
02:33:44
Unidentified Speaker, -
ARE COMBINING TWO DIFFERENT THINGS AND THERE ARE $400 BILLION MORE CAPITAL THAN THERE WAS BEFORE THE CRISIS WHICH IS A NECESSARY AND VERY IMPORTANT...
02:34:48
Unidentified Speaker, -
THE PRESIDENT TOOK OFFICE AND I'M BRINGING THIS TO YOUR ATTENTION NOT WITHSTANDING LIBOR AND FSOC, ALL WHICH ARE IMPORTANT, AND I'M BRINGING IT TO...
02:35:39
Unidentified Speaker, -
U.S. ECONOMY WAS SHRINKING AT AN ANNUAL RATE OF 9% IN THE LAST QUARTER OF 2008. WE WERE ON THE VERGE OF WHAT MOST PEOPLE THOUGHT WAS A PLAUSIBLE CHANCE...
02:36:59
Unidentified Speaker, -
THAT IT HAS
02:37:00
Unidentified Speaker, -
BEEN STABILIZED AND THAT IT IS NOW IN MUCH BETTER SHAPE THAN IT WAS WHEN THE PRESIDENT TOOK OFFICE? >> ABSOLUTELY. >> AT THE TIME THE PRESIDENT TOOK...
02:37:15
Unidentified Speaker, -
IT NOW AND
02:37:16
Unidentified Speaker, -
I CONCUR, THERE IS SOME, BUT ECONOMIC UNCERTAINTY WAS TO THE EXTENT THAT BANKS WOULD NOT LEND TO EACH OTHER. >> THAT IS TRUE. >> WHICH IS WHY YOU COULD...
02:37:35
Unidentified Speaker, -
THEY WEREN'T ABOUT TO SALVAGE AN AUTO INDUSTRY
02:37:37
Unidentified Speaker, -
WHEN THEY WERE TRYING TO SALVAGE THEMSELVES. >> TRUE? >> TRUE. THERE IS NO PRIVATE MARKET SOLUTION TO A FINANCIAL CRISIS LIKE WE FACED. >> AND FOR
02:37:47
Unidentified Speaker, -
THOSE
02:37:48
Unidentified Speaker, -
WHO WANT TO LAY ALL OF THIS AT YOUR FEET, I'VE HEARD A NEW TERM CALLED A BLACK
02:37:55
Unidentified Speaker, -
SWAN EVENT. IS THERE SOME SEMBLANCE OF THIS? >> YES. >> THE GENTLEMAN'S TIME HAS EXPIRED. I THANK YOU FOR YOUR TIME AND SOME MEMBERS HAVE ADDITIONAL...
02:38:12
Unidentified Speaker, -
YOU IN WRITING AND
02:38:13
Unidentified Speaker, -
WITHOUT OBJECTION THIS HEARING WILL REMAIN OPEN FOR MEMBERS TO SUBMIT WRITTEN QUESTIONS TO SECRETARY GEITHNER AND FOR YOU TO PLACE RESPONSES INTO THE...

NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.

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