together to give everyone who goes on the door and evaluation. what did you think of the visitor center and then given a valuation on tour nine so all the tour guides know there will be held accountable. i think this is really an issue that all the good we do as elected officials and we have ice after -- >> we would be happy to put the language in the report to directing the cvc to make that change. >> and think it is positive and has to be managed on a regular basis and even to the point you might want to maybe some people might be better seniors and others with children. i am not sure this is a message but i think this is an issue that we need to discuss with the committee and report back to us on a regular basis to make sure is a management issue in the

end. i don't know the standards are and the other issue i want to talk about before my time runs out is the issue of cellphones and the ability for members to be able when there is a vote call if your cellphone doesn't work and the bells are going off the same issue i have time to about in the capital's lunchroom or whatever or if you can't get a phone call and you don't -- there is a vote there. i am not sure from the infrastructure point of view but it is something when members are over there with some visitors taken from the district or whenever i don't know what the system is now. >> this to our dead thing is sent major issue. >> the tour guide issue is a major firming. if somebody is having a bad experience that is not good so i think we will look into that an address an ongoing concern of ours. we do a lot of training this gives us another point to train condescension is not very good.

as for evaluation we are in the process of developing a mechanism to do full-scale a valuation of our visitors and our users and hopefully will have that launched probably not until the fall. i am pleased we will be able to have solid information for this committee. >> she is doing the hiring. >> we actually have personalities tanners. >> people skills are very relevant. >> yes, we do have the standards and we do have an evaluation of people on the comments we get from people who service the using so we will go back and address that. >> one or two bad individuals can hurt everybody so i am not saying -- what i hear two people and i get another complaint you have to raise them. >> what about the issue of the cellphones? >> yes are on cellphone coverage and the cvc as part of our

project we have coverage the cvc public areas in the senate side. as of a few months ago there was a problem on the house side, it was a funding issue of the cno office and as of a few months ago and have not installed the system in the house itself, the house portion of the cvc for cellphone coverage. the coverage and that was being received at that point in time was spillover from the rest of the cvc but i don't know the current status of that within the house to balckout about the bell system? >> that i am not -- i am not aware of. >> just to correct mr. unger, it is in the process of working and the expansion phase on the house side for some reason the prior in the previous speaker of the administration they made a decision not to cover, they were

expecting to use the house expansion as soon as we ended up using in their significant demand and a lot of members use it and was a design with cellphones coverage and we're in the process of doing that now and the concern with taking longer is our expansion states happen to be next to mad and they are dealing -- >> we have an issue there to that we have to have them look at that so doesn't penetrate the scale. >> that is what is being reviewed by now but it is a problem being addressed. thank you. particularly thank you being the parent of 10 year-old twins. [laughter] it is actually very important to make sure that the guys are sensitive to children. just by way of example not standing at full height and talking down to a child who is

at much lower to the ground, just training them on little things that really help in interaction with children and getting down to their level, listening to their questions, answer their questions and a simple way but not patronizing way. there are some people good dealing with kids and others are not. their children don't have a good experience on the door and can really impact your trip. for the rest of the dead. now i want to shift to the paper which is not used. obviously we can all see the replacement is going out on the plaza and there are some that are heavily damaged and some that are not damaged as badly. where are we in terms of the

process and how we deal with a normal wear and tear and a design flaw that clearly existed because we had an expectation these would be driven upon. >> we are making very good progress for about two to three weeks away from finishing their place in an effort on the house side. we have started to work on the senate side and we are a bit ahead of schedule at this point and we hope to finish around mid september with the complete project. in terms of maintenance once we finish they will not require a deal of maintenance and they will have to be expected for oil stains and clean and the joys will have to be inspected but we don't anticipate any where near the type of shipping that we

would experience with the old system at least in those portions of the plaza that we are replacing. >> so the shipping, there is some the ship and discolored, are those part of the replacement process? >> both of those in the area that will be replaced. there are a few that are tipton have stains in the areas not replacing but we are going to replace those that are chipped or stained individually can i just another suggestion, if as we go for in who we can make sure that the gaps that may develop in between the women who walk across them in the heels, really there are reasons to like people of different genders to congress. i can tell you on many an occasion on not to these papers but i have had a deal that gets

half of it being taught and it is dangerous, and you can really hurt yourself. so if we can be mindful then he'll shoes walking across the pavement. mr. dorn, i am not sure how much you can answer this at a public hearing, but you have an issue with a company that originally designed in the papers and gave us the lay down on the damaged ones and the lawsuits and how we are resolving the issue of planning for the replacement? >> there is no one going mitigation at the moment. we're still not in a good place to talk about it but i do know they have been having some correspondence with the designer >> maybe if we could have some

talk on that pier and. >> i have an opportunity to speak in my office last month about the length of the lines and the cannon tall during the part of the peaks staff fled to paris season and really getting back to be in an hour and a half and we would walk by them every day you had a six minute we time outside the entrance to the cvc and to our way time for staff led to wars. in their getting a lot of member complains about the length of time. teefive goals was extremely helpful and we were able to i think achieve a balance between how many staff at the entrance to the cvc vs making sure that we can open at the cannon tunnel so i appreciate the adjustments he made to that. six minutes is a great time but

doesn't have to be six minutes. to be 10 minutes and we can reduce the time for the staff led to is considerably so you do have a plan going for it to make sure during peak times we can keep it open? >> immediately following that meeting we instituted that plan and we continue to monitor the lines and make sure that we have supervisors on scene, there program number of magnetometers open and the most expeditious professional screening that we can do at that location. >> this is an extension of that because we've had a really long lines outside the office building, what steps aren't taken to address those? >> we have assembled response teams that will go because of these lines come and go and recant guess when that is fine two have been so what we do is simply monitor the input at the

doors and whenever we have long lines in locations will send additional offices to that location to help alleviate the lines and we sort of do that on a rotating fashion. >> it seems as the tourist season as wound down the line seemed to be getting a little shorter. >> the have and we have also noticed as you said that the staff led tours have increased and people are still coming from different modes of transportation and visiting their members before they go to the cvc or the capital. and we are screening significant numbers of people this year into our buildings. >> let me follow up and mention mr. ruppersberger reminded me of this, we won't, of course, all

of her, we won our constituents to have a positive experience and i come to the capital and i tell people this is a fair wind is to be one of building in washington d.c. i would be impartial to tell them to see the u.s. capitol because of what it stands for and the symbolism and many see that capitol dome you can recognize it around the world and people to recognize and around the world. but one of the things that is of poor and whether a tour guide or someone whether stafford or someone that is working with capitol police i think is important that they show their respect for the visitors in the capital and sometimes i walk by some of the capitol police and parts of the capital and not his visitor center. if sometimes it seems like they are not really their top priority and i understand safety

is their top priority, but sometimes the way they communicate to some of the visitors and some of the staff is sometimes pretty condescending. again, i know that safety is first and foremost for the job at the same time i do think it is important that whether you have a five year old or 10 year old and and they have a positive experience in the nation's capital. i don't know if that is something that you all address on a consistent basis or whether that really comes up, but i do think i would appreciate if you would look into that and let officers know that these people for the only time will be visiting the capital in their entire life. to be as positive experience as possible and understand that they have never been some of these buildings before so they are not sure exactly how they're supposed to put their purse on the conveyor belt and zack did

the when they need to be are two have their purse open when they go to a certain night, are something like that. i bring that up and it's not something i plan to say. mr. ruppersberger was talking about that issue and i do think it is vitally important that the public sees a very positive face for all of us whether a member of congress or capitol police staff and as far as the red coats or whenever the case may be so i mentioned that you. i don't necessarily want to respond but i want to put it on the radar screen and appreciate being constantly aware of that issue. >> if you don't mind out like to respond. i concur, i have used for the u.s. capitol police for 25 years and one of the things i love the

most is the people who work here and come here barrett is one of the reasons i go out and i stand in lines. most recently memorial day for the july concert and some of these other lines we have been saying at the cvc in the buildings two really emulate one of our core values which is courteous and to lead by example. we as capitol police officers appreciate the land that people come here from around the world to visit the. is my intention that when they interact with capitol police officers is a professional police officer who is an unflinching, courteous, principled and has core values that stand for us. we will go back and made sure

that we reiterated that and hopefully we correct any issues with any individuals the don't folly of those encorps the use. >> let me follow up and say that i think the capitol police, they will do a great job and you have some of the finest officers anywhere in the country serving as capital place in the doing a great job. it is with any profession or any job you even have some members of congress that are probably getting a bad impression that make us look bad as well. so there is certainly no occupation or profession that is not a man from that us something that i think is important that people who come to the capital and the officer may be having a

bad day but it is important they do everything they can to show the courtesy and the same time making sure that safety is number one concern. thank you. >> thank you. >> mr. ruppersberger, i have a couple more questions. ms. morse, was brought to my attention recently and again without asking questions and making conclusions by anecdote and forgive me for sending back but i'm having a little trouble with the extension of my foot tier. on a gallery visitation process it was described to me a constituent who have people wanting to go through the gallery for a long while, there was a whole bunch of things like

that but they came upstairs, they were going to go to the gallery's first and then go back to the cvc later, but we were in the middle of a series of six votes and sustain that process and just watching the debate is something they wanted to see and they were urged to go see at. so i guess the offices they dealt with told them even though there are countries read their ever told that they had to go back to the cvc and register and the term register was used. and leave their belongings there and then only then could they come back up in the gallery and i had one of my staff with them so there was a little bit of back-and-forth cordial but they had to go back to the cvc and when they did get back up to the gallery, the gallery was not

nearly completely fall and a handful of people on-line and still they were restricted to being in the gallery for 15 minutes and then shuttled out. so what is the process for a gallery visitation. is a made clear to staff led to worse and also the redcoats? isn't there any flexibility on the gallery is empty and not that fall and the line is not that long to have too rigidly adhered to the 50 minute rule? >> there was no flexibility there and as you describe. there is a process for gallery tickets and there is a line from the cvc from the capitol building itself to get there but once a staff person have brought someone to the gallery i don't

understand why could be facilitated that. >> they want to put their stuff in the countries and go in the gallery and come back out. >> i am sure that it happens. often where the process for whatever reason and perhaps that has some impact on the decision the officer made and in my view you were there, your staff and had a group and we should have been able to be flexible enough to facilitate that. >> can we make sure it is communicated to offset the staff of that area and obviously we have rules when there are long lines want to get people to their unrealized there on running that process to the cvc but the officers are there to staff. >> i think we should be able to facilitate those things. if it is problematic.

>> that things are taken there by the doorkeepers that are not allowed into the galleries and there is space there, cubbyholes cabman's it cetera that is people, the staircases that is the first thing they do. but we can facilitate that and if there is some problem with everybody doesn't and will communicate to the staff and go back through her but i think in that position instance we could have been more flexible and facilitated it. >> my last question is unrelated to this cvc and as a mine imagine having a broken leg i am a little more sensitive now than i normally would be two accessibility issues in the capital. [laughter] i guess i didn't fly to second base there wouldn't be as aware

but it has been quite helpful that we helped fund and the accessibility effort that have been pursuing out of the subcommittee. there are quite a lot of gaps in our accessibility and the whole capital complex but one of those in the house office building that are enclosed with the elevator on each of the corners of all the floors to the elevator bank you have to push for an. none of those are wheelchair accessible and there are no buttons to open i have been going around on crutches for the last 10 days and i absolutely -- they cannot be that by

themselves and if you have a timetable i'm going to be done with this in 12 weeks, but in real in this issue and that i was not aware of the incident occurred to me until i was dealing with it myself. >> we don't have a timetable. in the will look at that right away and get it corrected. >> a bundy's to be put on those and they can get it if they are alone which often people aren't that there are nine people willing to open the doors but i have found there are people who are not so nice to let the four go in your face. >> the other place is on the door on the south front of the capital where the ramp is you

come into the main doors but then there is a door to the left as you are supposed to go through if you are a member, if there is no button on my door either end no button coming out and that is the way you're supposed to come out so it is heavy and is really an issue. those are the issues i wanted to race and with bad -- >> we talked about the cell phone coverage and a lot of times members are still losing calls their. >> [inaudible] >> any of the issues related to

that area and so i appreciated. we are all very cognizant of how there aren't too many places in the capitol complex that are inaccessible, but i'm more clearly aware of it now so we can step up our efforts and that let me know. we wouldn't be the a legislative appropriations committee without some homework so now that the cvc has been open for eight months it is really a good time for us to take stock and assess how well systems develop before we open our working now that the centers operating in the real world. as we have talked about at this hearing whenever you open up a facility of this magnitude some things will go well and other things out so well and will need adjustment, the key is being able to identify for problems exist and adapt so based on our discussion today i think one of the main areas worth taking a

second look at is this transportation plan. we said to be would revisit and at this point in the year after we saw how it was going with the shuttle, clearly it is a problem that i think ms. evaluation. it sounds like the overall system is working well but there definitely are some adjustments that need to be looked at. in order for us to get particularly senior citizens and the frail up to the cvc. in line with that i like the stuff in coordination with capitol police to renew the existing plan forgetting visitors from their tour buses to the cvc and assess how well it is working and whether additional adjustments might be worth considering to facilitate visitors particularly senior citizens to the mansions so please explain the pros and cons of its potential adjustment and identify whether viable and provide general estimate of the cost to implement both initially and on annual passes as well. the report will be due back a

month on august 24th. with that, thank you all for your participation in, the subcommittee stands adjourned. >> thank you. [inaudible conversations] [inaudible conversations]

a senate hearing on regulating firms whose failure could cause a risk to the economy, witnesses included chairman bair, head of the fdic, christopher dodd of connecticut chairs the banking committee, this is about two 1/2 hours. [inaudible conversations]

>> the committee will come to order. bois -- after consultation with my friend and colleague from alabama what we are going to do is i am going to -- we have two items to deal with, obviously the hearing this morning and dealing with systemic risk but we also have a two go into executive concession to consider the extension act of 2009. and we normally leave 12 members here to actually go out of this bill, but i think we will do it and i am going to have a brief sense of remarks about that bill perry brief. senator shelby will make brief comments about its and then as soon as we get the 12 member to show up we will have a vote and a voice of on the bill but in the absence of that will go for it actually with a hearing so we are not wasting time and having people with until the 12 members shows up. we are getting close.

three, four, we are still five short. we will be considering as a mentioned here the public transportation extension act of 2009. this is a bill that authorizes under the safe accountable flexible and efficient transportation equity act, a legacy for users. this bill was developed in a bipartisan fashion with my colleague and friend, senator shelby, and his staff and extends public transportation programs for 18 months. .. october 1st of 2009 through march 31st 2010. at fiscal year 2009 authorized funding levels. we expect this bill will emerge with similar bills from the environment public works f!sji

by get the 18 months is there. it depending how things work this year we could get to a transportation bill next year the administration presented its 18 month extension proposal the leaders i advocated for six months instead of the week it least try to get them developed next year rather than wait until 2011. regardless of the length of the extension congress ultimately passed and i intend to work with their colleagues obviously on this committee principally but opposite with others to move a bill early next year if the opportunity to present itself investing in transit systems, high-speed rail corridors, i think it's simply too important for nation's economic competitiveness, economic growth and quality of life to put off for too long in these difficult

economic times it is an forge remember these investments mean good investments and jobs. in the transportation bill is needed to both reform the way we approach transportation policy and to increase the amount of funding we invest in our transportation infrastructure. one change needed in our approach to transportation policy, the special-interest to this committee, as the need for renewed commitment to investing in public transportation. it is our jurisdiction and we must assume responsibility for it. if we are to address challenges like climate change, energy security, the worsening traffic congestion that all this have to confront not to mention significant population growth and demographic changes, we need to take a look at public transportation and for all of these reasons, i'm going to continue to work with our colleagues on this committee as well as those in the full senate and house and of course the administrations to look for opportunities to advance a transformation transportation bill. early next year or is in as we possibly can.

i am going to turn to senator shelby for any comments that he may have. senator bob menendez has an interest in the subject matter and want to be heard briefly as well and is and as we have the 12 member we will put this bill up and let me turn to senator shelby. >> mr. chairman i would like for my statement to be made part of the record. other than that i want to associate myself with the remarks. this is an 18 month extension. what we really need is to do the real deal. we need to continue to do that and if we do there will be certain the out there for a long time. i hope we will not wait until the deadline to start working again. >> i appreciate that very much and i know will switch gears and we will move into our hearing this morning. i will make some opening comments in turn to senator shelby for his and then an fighter distinguished witnesses to join us that the witness table. i wealth in advance apologize that we interrupt your testimony was the 12th member arise. we will go back to deal with this legislation.

celeste shift years if we can now to the hearing and that is as i mentioned earlier, a hearing to establish a framework for systemic risk regulation. let me just share some thoughts if i can and again we have had a lot of discussion about this subject matter over the last number of months. we have had some 40 hearings in this committee since january. not all that on this subject matter but the bulk of the hearings a ban on this whole issue of how we modernize our regulatory structure, not only to address the prob$i? @&c @&c"t also how we treat that architecture for the 21st century that will allow us to move forward with innovation and creativity that is the hallmark of our financial services sector and yet once again restore that credibility of safety and soundness that has been the hallmark i think of our financial services sector for so many years and it collapsed in the views of many over the last number of years, resulting in the economic problems so many of our fellow citizens are facing

with joblessness, house foreclosures, retirement accounts being wiped out in all of the ancillary problems our economy is suffering through. systemic risk will be an important factor in all of this and i can't begin to express my gratitude to my fellow members here because unlike other matters the congress is dealing with my sense is on the subject matter, this is not one that has any ideology that i can sense to little. to figure out what works best, what makes sense for us here, not that we are going to solve every future problem. i think we make a mistake if we are sort of promising we cannot deliver. there will be future problems and we are not going to solve every one of them but if we can look back and see where the gaps have been either were there was no authority or where there is authority but it wasn't being exercised and how we fill those gaps than a way that makes sense i think it will be a major contribution and i want to particularly thank senator shelby, former chairman of this committee. wit had a lot of conversations together. we don't have a bill ready at

all. there has been a lot of talk at this point but i get a sense among my colleagues as i have discussed the subject matter that we share a lot of common views about this. it has a good place to begin. doesn't mean we are going to agree on every answer but i sense overwhelmingly the people are committed to the goal of establishing what makes sound and solid regulatory process. new term in our natiovjj vocabulary, systemic risk, not words we use much. i don't recall using those words much of all over the years ago it is an idea that in an interconnected global economy it is easy for some people's problems to become everybody's problems and that is what systemic risk is part of the failures that destroyed some of our nation's most prestigious financial institutions also devastated the economic security of millions of working americans who did nothing wrong and never heard of these institutions that collapsed and put them at great risk. jobs, homes, retirement security gone in a flash because wall

street greed in some cases, regulatory neglect and others resulted in these problems. after years of focusing on short-term profits while ignoring long-term risk, and number of companies, giants of the financial industry found themselves in a very serious trouble. some as we know try to-- some morph sold under dress and an untold number only survived from intervention, loans, guarantees, direct injections of capital. taxpayers had no choice but to step in. that is my strong view. assuming billions of dollars of risk and state companies because our system was not set up to withstand their failures. their efforts save their economy from catastrophe but real damage remains and we all are painfully aware. investors who lost billions were scarred, scared to and desperate the credit markets dried up with no one willing to make loans. payroll, employees were laid off

and families could not get mortgages or loans to buy an automobile even. wall street's villiers as we all know across our nation and it will take years, perhaps decades to undo the damage that a stronger regulatory system could have prevented and while many americans understand why we had to take extraordinary measures this time, it doesn't mean that they are not angry, because they are. does that mean they aren't worried. they certainly are that. doesn't mean they don't expect us to fix the problems that allowed this to happen. first and foremost we need someone looking at the whole economy for the next big problem with the authority to do something about it. the administration has a bold proposal to modernize our financial regulatory system that would give the federal reserve new authority to identify, regulate and supervise all financial companies considered to be systemically important. it would establish a council of regulators to serve in a sold advisory role and it would provide a framework for companies who fail, if they must

fail in a way that does not jeopardize the entire financial system. is aknc thoughtful ptau but the devil obviously is in the details and i expect changes to be made in this proposal. i share my colleague's concerns about giving the fed additional authority to regulate systemic risk because the fed has not done a perfect job to put it mildly with the responsibilities it already has. this new authority could compromise the independence the fed needs to carry out effective monetary policy. additionally systemic risk regulation impulsed thubron of the range of issues and a mic you for any one regulator to be able to oversee it so i am especially interested to hear from our witnesses this morning on your ideas and how we might get this right. many of you have suggested the council with real authority that would effectively use the combined knowledge of all the regulatory agencies. is president obama has said, we must ensure that its foundation rests on a rock, not on san. today we continue our work to

lay the cornerstone of that foundation, a strong, smart, effective regulation that protect working families without hindering growth, innovation and creativity that has been the hallmark as i said earlier of our financial services sector and with that let me turn to senator shelby and then i will introduce our first panel. >> thank you mr. chairman shuette the core of the administration's financial regulatory reform proposal is the concept of systemic risk. the president believes that it can be regulated and that the fed should be the regulator. but, as we began to consider how to address systemic risk, my main concern is that while there appears to be a growing consensus on the need for a systemic risk regulator, there is no agreement on how to define systemic risk, let alone how to manage it. i believe that it would be legislative malfeasance to simply tell a particular regulator to manage all financial risk, without having

reached some consensus on what systemic risk is and whether it can be regulated at all. should we reach such a consensus, i believe we then must be very carefulç6 our markets a false sense of security that could actually exacerbate our too big to fail problem. if market participants believeo that they no longer have to closely monitor risk presented by financial institutions, the stage will be set for next economic crisis. if we can't decide what systemic risk is, and that it is something that should and could be regulated, i believe our next question should be who should regulate it? unfortunately, i believe the administration's proposal largely places the federal reserve in charge of regulating systemic risks. it would grant the fed, as i understand white paper, 42 regulate in the bank, securities firm, insure, investment fund or any other type of financial institution that the fed deems a

systemic risk. the fed would be able to regulate any aspect of these firms even over the objections of other regulators. in effect, the fed would become a regulator, a giant of the unprecedented size and scope. i believe that expanding the feds power in this manner could be very dangerous.o6s the mixing of monetary policy in bank regulation has proven to be a formula for taxpayer funded bailouts and for monetary policy decisions. given the fed-- given the feds alta my responsibility for the regulation of systemically in-- will provide further incentives for the fed to hide its regulatory failures by bailing out troubled firms. rather than undertaking the politically painful task of resolving failed institutions, the fed could take the easy way out and rescue them by using its lender of last resort facilities or open market operations, even

worse the could undertake these bailouts without having to obtain>x@ the approval of the congress. in our system of government, elected officials should make decisions about fiscal policy and the use of taxpayers' dollars, not the unelected central bankers. penning over-- handing over the public purse is simply inconsistent with the principles of democratic government. augmenting the federal reserve's authority of the rest burdening it with more responsibility than one institution can reasonably be expected to handle. in fact, the federal reserve is already overburdened with its responsibility for monetary policy, the payment system, consumer protection in bank supervision. i believe anointing the fed is a systemic risk regulator will make what has proven to be a bad bank regulator even worse. let us not forget that it was that that the push for the adoption of the courts right here in this committee, which would have drained the banking

system. it was the fed that failed to adequately supervise and bank of america, setting the stage for bailouts in excess of $400 billion. it was the fed that failed to adopt mortgage underwriting guidelines will after this crisis was underway. yes, it was the fed that said there was no need to regulate derivatives, right here on this committee. it was also the favell lobby to become the regulator of financial holding companies as part of gramm-leach-bliley. the fed well and that fighting got the additional authority. ten years later however, it is clear that the fed is proven that it is incapable of handling that responsibility. ultimately, i believe if we are able to reach some sort of agreement on systemic risk, whether it can be managed, i strongly believe we should consider every possible alternative to the fed as a systemic risk regulator. thank you mr. chairman. >> thank you very much senator

and we are still missing one. i think, is that one? i need 12 endless-- if i have a colleague back in cattiest well i am willing to move ahead. [laughter] after all, this is washington. we will wait for the 12th to arrive. let me invite sheila bair and mary schapiro and dan tarullo to join is that the with the table and let me briefly introduce people who hardly need an introduction and they have been before this committee and numerous occasions. sheila bair is our chair the federal deposit insurance corporation served as assistant secretary the treasury, an extensive background in banking and finance and of course many of us up here if known nor for the years when she was legal counsel to bob dole, and did a great job in that capacity as well so very familiar with the senators. marie schapiro is the new chair of the securities and exchange

commission and prior to were appointment this year she served as the ceo of the financial industry regulatory authority of finra, also served as the commission of the fcc during one of reagan's administration and president bush 41 in the clinton administration. dan tarullo, i will finish this in turn to our executive session, and am4ñ member of the board ofshkjujjuáhjtnhñ reserven for many of us here having servedflñ in public life on numerous occasions. a clune in-- including assistant secretary of state for economic and business affairs. ghaffari service chief counsel for employment policy on the staff of our good friend, senator ted kennedy as well, and touted georgetown university law center and worked for the clinton administration a we thank you for your services. let me quickly now turn if i can to our markup and i just informed my colleagues of arrives after statements were given, we are considering a horse extension of the

transportation bill and we have completed our statement. bob mcminn -- bob menendez of mata bright. when he comes then, at the proper time we will intervene and make comments that will apply to the conversation we have had about transit but i want to move along if we can. so i now move that the committee first of all that we move to be an executive session. without objection sort of. in no order the regional bill title public transportation extension act. all those in favor of reporting the bill signify by saying aye. does oppose comminate. >> i does appear to have it in the ayes have it ois consent that the staff be allowed to make technical changes. hearing no objection sorbic of the bill as amended is ordered reported in executive session is a journey. how about that for extraditing a meeting? now we will give back to where witnesses. you have been introduced and sheila we will begin with you, and all statement supporting

data materials and the like, that you think would be valuable to our committee as we consider modernization of the federal regulatory structure of course will be included in the record and that is also true course of all of our colleagues here as well. we would like he could to try to keep those remarks to five to the questions as quickly as possible. thank you for joining us. >> chairman dodd, ranking member shelby the members of the committee, i appreciate you holding this hearing. the issues under discussion today those before the congress in the wake of the great depression. we are emerging from a credit crisis that has wreaked havoc on our economy. hall onset then lost, jobs have been lost, retirement investment accounts have plummeted in value. the proposals put forth by the administration to address the costs of this crisis are thoughtful and comprehensive. however these are very complex issues that can be addressed in a number of different ways. it is clear that one of the causes of our current economic

crisis is significant regulatory gaps within the financial system. differences in the regulation of capital, leveraged, complex financial instruments and consumer protection providing an environment in which regulatory arbitrage became rampant. reforms are urgently needed to close these regulatory gaps. at the same time, we must recognize that much of the risk in the system involves financial firms that were already subject to extensive regulation. one of the lessons of the past several years is that regulation alone is not sufficient to control risk-taking within a dynamic and complex financial system. robust and credible mechanisms to ensure that market participants electively monitor and control risk-taking must be in place. we must find ways to impose greater market discipline on important institutions. in a properly functioning market economy there will be winners and losers and when firms, to their own mismanagement and excessive risk-taking are no

longer viable, they should fail. actions that prevent firms from failing ultimately distort market mechanisms, including the incented to monitor the actions of similarly situated firms and allocate resources through the most efficient providers. fortunately the actions taken during the past year have reinforced the idea that some financial organizations are too big to fail. the notion that too big to fail creates a vicious circle that needs to be broken. large firms are able to raise huge amounts of debt and equity and are given access to the credit markets get favorable terms without sufficient consideration of the risk profile. investors and creditors believe their exposure is minimal since they also believe the government will not allow these firms to fail. the large firms leverage these funds and become even larger, which makes investors and creditors more complacent and more likely to extend credit and funds without fear of losses. dubik to fail must then. today, mr. robeson creditors of large financial firms rationally

have every incentive to take excessive risks. they enjoy all the upside but their downside is kept at their investment in the too big to fail the government stops that. for senior managers the incentives are even more skewed. paid a large part through stock options, senior managers have an even bigger economic state in going for broke because they are upside is a much bigger than any possible loss. what again with too big to fail the government takes the down side. diland dubik teufel we need a solution that uses a practical, effective and have a credible mechanism for the orderly resolution of these institutions similar to that which exists for the fdic insured banks. when the fdic closes a bank shareholders and creditors take the first loss. when mccaul for resolution mechanism we are not talking about propping up the failed firm. we are talking about a process where the failed bank is close, with shareholders and creditors typically suffer severe losses and were management is replaced and the assets to the failed

institution are sold off. this process is harsh but it quickly reallocates assets back into the private sector and into the hands of better management. also sends a strong message to the market that investors and creditors will face losses when an institution fails. so-called open bank assistance which puts the interests of shareholders and creditors before that of the government should be prohibited. make no mistake, i support the actions the regulators have collectively taken to stabilize the financial system. lincoln a mechanism we did what we have to do, but killing ford, open bank assistance by any government entity should be allowed only upon invoking the extraordinary systemic risk procedures and even then the standard should be tightened to rehabbed assistance to prop up an individual firm. moreover whatever system wide support is provided should be based on a specific finding that such support would be least costly to the government as a whole. in addition, potentially

systemic institution should be subject to assessments to provide disincentives for complexity in high-risk behavior. i am very pleased that yesterday the bresson express support for the idea of an assessment. funds rates should be keptewñ n reserveñ. to provide working capital for the resolution of large financial organizations to further insulate taxpayers from loss. without a new comprehensive resolution machine, we will be forced to repeat the costly ad hoc responses of the past year. in addition to a credible resolution process there is a need to improve the structure for the supervision of systemically import institutions and create a framework that identifies issues that pose risks to the financial system. the new structure featuring a stronger oversight council should address such issues as the industry's excess of leverage an adequate capital and over reliance on short-term funding. a council of regulators will provide the necessary perspective and expertise to do our financial system holistically.

a wide range of views makes it more likely will capture the next problem is the for they have been. as with the fdic board a systemic risk council can act quickly and efficiently in a crisis. the combination of the unequivocal prospect of an orderly closing, a stronger supervisory structure and a council that anticipates an mitigates risks of developing within and outside the regulated financial sector will go a long way to assure that the problems of the last several years are not repeated and that any problems that the rise can be handled without cost to the taxpayer. thank you very much. >> thank you very much. chairman schapiro. >> thank you. chairman dodd, ranking member shelby the members of the committee i am pleased to be here today with my colleagues from the fed and fdic. there are many lessons to be learned for recent financial crises and a key one is that we as regulators need to identify, muncher amadou systemic risk

before they threaten the stability of the financial system. however in our efforts to minimize the potential for institutional failures to threaten the system we must take care not to unintentionally facilitate the growth of large, interconnected institutions whose failure might later pose even greater systemic risk. to best address these rest of the league must rely on two lines of defense. first the traditional oversight and regulation. this includes enhancing existing regulations, filling gaps increasing transparency and strengthening enforcement to prevent systemic risks from developing. second we should establish a workable macroprudential fran markon resolution regime that can identify, reduce and unwind systemic risks if they do develop. closing reagan toy gaps is an important part of reducing systemic risk. if financial bridges of bens realize they can achieve the same economic gains which the work coscom abutt flaka twip reegan toy gapped they will do

so quickly, often with sights and leverage. we have seen this time and again most recently with over-the-counter derivatives. instrument for which major institutions engaged unregulated trading in synthetic versions of the other often highly regulated financial products. we can do much to reduce the systemic risk and close these gaps and ensure that similar products are regulated similarly. in addition to filling gapsk:f e need to ensure greater transparency of risk. transparency helps reduce systemic risk by enabling market participants to better allocate capital and giving regulators more information about risks that are building in the financial system. transparency has been utterly lacking in the world of unregulated over-the-counter derivatives, hedge funds and dark pools. additionally we need to recognize the importance than vigorous enforcement plays and sending a strong message to market participants. as issac and lended offence i believe there's a need to establish a framework for

macroprudential oversight, a key element of the administrations financial regulatory plan. which vinnette bremer kepley the most appropriate approach consists of a single systemic risk regulator and a very strong council. in terms of a systemic risk regulator i agree there needs to be a governmental entity responsible for monitoring our future markets for systemwide ms.. this will can be performed by the federal reserve or new entity's specifically designed for this task. the systemic risk regulator should have access to information across the financial markets about institutions that pose significant risk. it should be able to monitor whether institutions are maintaining proper capital levels and should have the authority from council to respond quickly and extraordinary circumstances. almost importantly the systemic risk regulator should serve as a second set up baez is still you might put the system at risk. at the same time, i agree with

the administration that the systemic risk regulator must-- but i believe that any council must be strengthened well beyond the framework set forth in the administrations white paper. the council should have authority to identify institutions, practices and markets that crete potential systemic risks and to set standards for liquidity, the capital and other risk-management practices in systemically important institutions. this approach can help minimize systemic risk in a number of ways. first the councilvcgñ would bria different perspectives to the identification of risk that individual regulators might miss what considered too small to warrant attention. second the members council would have experienced regulating different types and sizes of institutions so that the council would be more likely to ensure that risk-based leverage requirements do not unintentionally foster greater systemic risk. and third the council would

include multiple agencies there by submitting-- significantly reducing conflict of interest in a regulatory capture. finally the council would monitor the growth and development of financial institutions to prevent the creation of institutions that are either too big to fail or too big to succeed. most i would expect the council on systemic risk regulator to work with them through primary regulators who were experts on the products and activities of the regulated entities. the systemic risk regulator however can provide a second layer of review over the activities risk-management procedures of systemically imocc institutions as a backstop to ensure that no red flags are missed. to ensure that authority and decisions are not arbitrary the council would remain the place where a general policy is set and its differences remain between the council and the primary regulator, the more stringent standard should apply. n.

to raise standards for á cana credible regulatory regime that will help restore investor confidence. i look for to working to address these issues and do all we can to foster is a fair, dynamic and more nimble financial system. thank you. >> thank you very much, chairman schapiro.

mr. tarullo, welcome to the committee. >> thank you, members of the committee, my prepared statement sets forth in some detail the positions of the federal reserve and a number of proposals been brought before you so i thought i would use his introductory remarks to offer a few more general points. first i think the title you have given this hearing captures the task well. in establishing a framer for systemic risk regulation. the task is not to enact one piece of legislation or to establish one overarching systemic risk regulator and then to move on. in the shortcomings of our regulatory system were two widespread, the failure of risk management to financial firms two pervasive, and the absence of market discipline to apparent to believe that there was a single cause of a much less a single solution for the financial crisis. all we need a broad agenda of basic changes that regulatory agencies and in financial firms

and is the same average to embed a market discipline in financial markets. the second, the too big to fail problem looms large on the agenda. therein lies the importance of proposals to ensure that systemically born institutions are subject to supervision peridot to promote capital and other kinds of rules that will apply more stringently and systemic importance of an institution increases and to assemble some resolution mechanism that makes the prospect of losses for predators real even if the largest tonnage of institutions. by too big to fail for all its importance was not the only problem left unaddressed for too long. the increasingly tightly wound connections between lending and capital markets including the explosive growth of the shadow banking system was not dealt with has leverage build up the of the financial system. that is why there are also proposals before you pertaining to derivatives, money market

funds, rating agencies, mortgage -- market products and for cyclical and other issues involving other federal regulator. third, in keeping with my first point on a broad agenda for change, let me say a few words about the federal reserve. even before my confirmation i had begun conversations with many of you on the question of how to ensure that the shortcomings of the past would be rectified in and the right institutional structure for rigorous and efficient regulation put in place, particularly in light of the need for a new emphasis on systemic risk. this colloquy have continued to the price hearing your committee connected empire subsequent conversations i've had with many of the. my colleagues and i have thought a good deal about this question and are moving forward with a series of changes to achieve these ends. for example, or instituting closer coordination and supervision of the largest holding companies with an

emphasis on horizontal reviews that simultaneously examined multiple institutions appear come in addition, building on our experience with the process that too so successfully upon in the analytic and financial capacities of the non supervisory divisions of the board will create a quantitative surveillance program that will use a variety of data sources to identify developing strains and imbalances affecting individual firms and in large institutions as a group. this program will it be distinct from the activities of the on-site examiners so as to provide an independent perspective on the financial condition. of the institutions. fourth and finally, i would know that there are many possible ways to organize or to reorganize the financial regulatory structure. many are plausible but as experience around the world suggests not as perfect. it will be disadvantages as well as and manages to you and good

ideas. one criterion and know that i suggest you keep in mind is sincere various institutional alternatives is the basic principle of accountability. >> regulators' concern many useful purposes. examining laden problems, court in a response to new problems, recommending new action to plug regulatory gaps and scrutinizing proposals for a significant regulatory initiatives from all participating nations. when it comes to specific regulations or programs are implementations though collective bodies often diffuse responsibility and attending wade the lines of accountability which i know this committee has paid so much attention to. and achieving an effective message -- mix of ages irresponsibility with an eye toward relevant institutional incentive will be critical to successful reform. thank you very much mr.

chairman, i'd be happy to answer questions. >> thank you very much, we appreciate your testimony in involvement with the committee. i asked the clerk to put on six minutes and try to keep on eye on that because we have a lot of participation and want to make sure we get around to people. gimme a very accurate account of their trial of members in terms of the order to address the questions to our panel. let me begin with you, governor tarullo, if i can and. i suspect a lot of the questions i'm going to praise you are going to hear variations of the same questions so as suspect a thing will emerge here. not but he testified that the administration's proposal to give it the fed it systemic risk services is incremental build on a robust authority which you have and in the bank called in company act in detail your plan for new surveillance program. but you have mentioned here for large complex financial organizations that look at emerging risks to the system as

a whole. office and asking about you because you are added to this, but given the federal reserve history and record on this as an institution as we look back, why should this congress have any confidence in the federal reserve other than what is said today and i appreciate what is said today but given the history of the federal reserve, you can argue this authority as it already existed and don't need new authority, the bankholding company has been there for a long time it. a certainly all the powers are there in the personnel, the resources to do a job and yet there was an abysmal failure when it came to these institutions here is so why this juncture, why should this committee or the congress have in a heightened degree of confidence the federal reserve having failed in that function given the authority for years to now be granted expanded authority in the same area? >> senator, let me say a couple things about that. first, as you know in my prior

capacity i had a fairly broad base of the criticisms about the fed and regulatory system as a whole. i continue to believe that one of the final history of the financial crisis is written and there's going to be a lot of blame to go around, the regulatory institutions to private institutions. this was not a single failing, this was a broad based failing at home and has seen internationally as well. site end -- and let me be clear -- i think that includes an inadequate or flawed approach to supervision at the banking agencies including the fed. second, i will say that i think that history chefs -- shift overtime. i remember when i was in law school studying this set of issues with the federal reserve was regarded in as a the most

aggressive of the regulatory agency is an the other agencies were regarded as someone more accommodating. so i think there is a rhythm that goes with the times, with the leadership of an agency, and with the general orientation of public policy. so since i have gone to the fed are actually before that and began having conversations with you and other members of the committee, what i have been trying to determine is the degree to which the capacity and resources are present to do what is in some sense the same job that should have been down better but to be honest in some sense a different job because i don't think anybody actually was focused on the system and part of the problem as much as they like to have been, it was more silo approach to regulation. and that is why i think both with respect to making some changes in prevailing loss of that it is clear the supervisor

of the holding companies has authority to do examinations of functionally regulators subsidiaries when necessary, those sorts of things need to move toward a, but i think more fundamentally one has to be done and the thing i mentioned a moment ago, which is to put in place a system within the institution that has its own kind of cross checks drawn upon and the substantial resources of agency and their are substantial resources to their and their research and monetary affairs parts of the board. to provide exactly the kinds of information that will enhance the provision. and that's i think the task which someone's clinton have to perform a senator, and is either going to be done in by the federal reserve board or another agency, it has got to be done somewhere. my belief is based upon my six

months experience at the fed that under chairman bernanke leadership it can be done. but i don't think anyone should underestimate the task and i would just seconds of the use that in your introductory remarks -- i hope people are not expecting that anything that the the fed or the sec or fdic or anybody else does is going to eliminate all potential for systemic risk. it is just -- that's just not clear to happen. and i think that's where i said we have to keep that in mind. let me say one final thing -- the proposal, the administration's proposal vary in how much they really mean to invest in a particular agency. back in our march hearing you and i talked by before they good bit about the different possible function of a systemic risk regulator. with the possible exception of some of the proposals for the council as have been described,

most proposals don't talk about systemic risk greg later, the talk about allocating set of responsibilities to particular agencies or collective groups and i think that's probably the way it should be. i really don't thank you need or want some much responsibility as well as authority larger than one agency to say you have responsibility for figuring out anywhere in the financial system with this problem and have authority to do to think is necessary. >> let me quickly turn to sheila for to put questions and play the devil's advocate in this sense, and again i'm sort of agnostic on this although i am of his towards the council

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>> southeastern conference>> the officials say they issued closei to 1,000 credentials for media week, which wrapped up today in hoover, alabama. well, it's safe to say that virtually every media member present this week was wrapped up in the mystery that engulfed thw proceedings.up which head coach left floridaora quarterback tim tebow off his preseason all-s.e.c. first team ballot?rst well, today south carolina's steve spurrier came clean. sp he was the one who left tebow t off his ballot, and the old bal. coach explained what happened. >> when all this came upy, in te wednesday, it was in the thuday thursday morning paper, i read some guy did not vote for tim tebow.did v who was that?otwhwas and our director of operationsfo

filled it out, brought it in tou me one day, and i looked at it quickly and i said that's fine a and i signed off on it. so i called him, now surely, hatiminly we had tim tebow. well, actually, coach, we had jevan snead. and i said, wait a minute. why?we had well, we already had ten gators, maybe get another guy. i take, no, no, that's bad. but it's my fault. i take full responsibility.not h i messed that up. i apologize to tim tebow. i screwed it up pretty badly. ea i'm embarrassed about it. i feel badly about it. that's the way it happened. >> spurrier and the gamecocks are looking to improve on last year's 7-6 season, which ended with three straight losses, including a 17-point defeat to arch rival clemson. spurrier was asked today about moving up in the rugged s.e.c.ss east.ec >> i think our sportsur information guy says we'reide picked fourth in the easternasrn division for the seventh year in a row.

so that's where we are. we're fourth until we move we can do better. w but again, we haven't turned itd around big time yet, and we're e trying to get there. so we're encouraged by a lot of. the things that have happened gsnce the bowl game, since the gwl game, a lot of encouraging events have happened, and we'ret looking forward to seeing how i. plays out this season. >> all right. south carolina opens its season with back-to-back road games atd n.c. state and georgia two week. after the bull bulldogs, the gamecocks host ole miss. ole miss a much improved team over last year. after an october trip to tuscaloosa, there are visits from probable pre-season numbero le florida plus arch rival clemson. lane kiffin has made hishenome presence felt and then some since taking over as tennessee's head coach. in an effort to reenergize the t vols' fan base, kiffin has beenu outspoken about other programs in the s.e.che. it' he was asked if it's time to dial back the rhetoric. it'

>> well, it's not because of the timing of the game. now it's time to not say something. now you got to back it up. baat's not it at all. it's part of the plan.it's it's about the timing of thingsg now that we're out there, now wv have this energy about our program nationally, that's whatt we needed to do.what we and so, yeah, does it tone down? naturally it tones down because there's something else to focusy on. the only thing was to focus on w what was what was going on in the off season.as now there's something to focus on, and that's real ball.ed we're very excited about gettins this season under way andork looking forward to the opener.rc we're just excited to get to the first day of practice.f >> and one week after hosting u.c.l.a., u.t. visits defending national champions florida.ti that one could get ugly earlyftr after all the off-season shotsga kiffin took against the gaiters. and in november the volunteers m travel to oxford to face ole miss. the l.s.u f. tigers look thege

bounce back from an 8-5 season which included a 3-5 record in the conference. head coach lyles has a pair off players battling for thee starting quarterback job and hei feels either is a good fit. >> both jordan jefferson andee ke ttt lee will take the field with a lot more experience ande comfort with what we expect of our quarterback. our we had to start the day, i would start jordan jefferson, but i believe that our offense will function extremely well with tht idea that our quarterbacks are i ttle b bit more veteran. >> notable games on the l.s.u. schedule, the tigers have back-to-back dates against georgia and florida in october. then in november the tigers visit alabama and nick saban. and their trip to ole miss will come three weeks after the golden anniversary of the legendary 1959 game with the 8 8-yard punt return for the game's only touchdown. auburn stumbled to 5-7 record ad last season, the tigers first

losing campaign since 1999. tommy tuberville is out. gene chizik is in. chizick will be asked to returnt the program to its recent heights.co he tutored three consecutive award winners starting withgerst auburn in '04. high expectations and chizik knows that's par for the course. >> when you get into this profession, there's pressureyou everywhere. there's pressure from the fans.o situe's pressure from the media. i don't think there's any more pressure put on auburn footballr than what i put on our kids and. myself. you know, we don't really pay a whole lot of attention to thehe external issues out there and we put enough pressure on ourselven to be great.s every one of our coaches want tr be the best at their trade. i want to be the best at my at trade.de.

and with that comes being self-imposed pressure, and so we set a foundation for what weoun want to do. that's our goal right now. g we're setting a foundation forhe long term here at auburn. the pressure's going to be there no matter what school you're at. if you're in college football,. that just coming with the territory. certainly i don't feel like there's going to be any morey. pressure than what i put on pre myself to be great.ss hey, this league is as good as r it gets, the best in the country, and there's only 12. so in this league comes l pressure, and it's just kind ofu part of the deal. >> let's check out the reportint dates for the s.e.c. schools. mississippi state will be first s.e.c. school to report toep preseason practice. p then you see when everybody you checks in. ole miss will report the latest. the players arriving in oxford on august 19th. and remember, college football r media days on espnews continuess on monday with the a.c.c., the ,

big 12 and the big 10.12 11 acoverage begins at 11:00 a.m. eastern time. all the news conferences and the coaches and the pertinent players from those conferences and plus thursday pac-10. same deal right here on espnews. we are the place to be. college football right around the corner. and with s.e.c. football media week wrapping up today, espn.com college football reporter mark schlabach has been in hoover, alabama, all week. he joins us now with his tick on what transpired. mark, i think i know the answer to this question, but what was the biggest story of the week there in alabama? >> well, obviously who didn't vote for tim tebow. i don't know if it's a surprise or a disappointment that that was the biggest story coming out of three days of s.e.c. media days, but it was the question asked of every coach, often the first question. we had to wait until friday of the last day today to find out it was steve spurrier. spurrier says it was a mistake. his football ops director filled out his ballot. he claims that he said it was okay and charles bloom, assistant s.e.c. commissioner

confirmed to me this morning that steve called him last night and said, hey, it's a mistake, we want the change it, and to steve's credit he said tim tebow and danny wuerffel are the greatest quarterbacks he's ever seen play. >> is anyone buying spurrier's explanation, or is this come man place something like this could have occurred. >> i think it tells you how ridiculous these preseason ballots are. i think probably 80% of the cases not only in the s.e.c. but across the country you probably got operations guys and sports information directors filling out these ballots. hopefully that's not going on during the season when they're doing top 25 ballots, but i think you got the take steve at his word. i'd be surprised to see him shun a gator because he was the 1966 heisman trophy winner there and led them to the '96 national championship. >> back to the sport itself now. let's get back on the field. was there team, mark, that you didn't have high hopes for entering this week that changed your mind and now you have a different impression?

>> well, i think arkansas and bobby petrino's second season is a team to watch. i think they're going to be one of the most improved teams on the field this season, primarily because ryan mallett, a transfer from michigan, will take over at quarterback. bobby petrino's teams are known for their passing attack. obviously weren't very good last year, his first year at arkansas, but talking to jay williams, their all-s.e.c. tight end, he told me earlier this week that during some off season passing drills he had to remove his gloves a couple times just to make sure he didn't break his fingers. he said mallet has the strongest arm in college football. when michael smith, their smaller running back ran for over 1,000 yards last season, i think they're going to be pretty good on offense. the key will be defense. they're ranked last in the s.e.c. in total defense and scoring defense last season. i think they're going to be better, but the schedule is brutal -- at alabama, at florida, at ole miss, at l.s.u. they play texas a&m and houston. it's a tough schedule, but i

think they'll be a heck of a lot more competitive than they were last year. >> keep an eye on the hogs. this was an off season of sniping among coach, especially among recruiting. what's been the fallout from that? >> the s.e.c. commissioner back in the spring told the coaches to quit going back and forth with each other and the clean up their off-field behavior, quit attacking one another. now the problem seems to be secondary violations. lane kiffin, the new tennessee coach, committed at least three secondary violations, all of them related to recruiting. he identify a recruit by name on the radio, an ncaa no-. no. identified another tweet on his twitter account. he allowed espn camera in while voicing recruits. gene chizik had a big cat recruiting weekend on the auburn campus where they brought in a couple hundred people the stage a rolling at tumors corner, an auburn tradition. mike said it's got to stop. the problem is these secondary violations don't carry much weight with the ncaa.

there aren't serious repercussions. he said if they continue the s.e.c. might take a look at doing something internally to make sure those secondary violations don't occur. >> mark, as always, thanks for joining us here on espnews. have a great weekend, man. >> thanks a lot. >> when it comes to women's sports, what are some of the challenges and opportunities women are presented with coming up in "aircheck." >> espnews brought to you by: there's something big happening at pizza hut.

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>> hi, everyone. welcome to "sports nation." i'm michelle beadle. that is colin cowherd. colin, the tebow mystery is over. >> finally solved. >> south carolina head football coach steve spurrier announced he was the mystery coach who did not vote for tim tebow as the preseason all s.e.c. quarterback. but spurrier is claimling it was all a big mix-up. let's take a listen. >> i admire and respect him, and i apologize to him. he should have been on that ballot. we messed up. i messed up. i tried to correct it the best i can. i was able to put tim tebow in today, so it's unanimous. >> so we asked sports nation, do you believe spurrier? >> i do. i covered him for two years. he was a lot of things. he was always honest.

he was never dishonest. the bottom line, college football coaches are so busy, game film, scouting, recruiting, coaching. they don't fill out all s.e.c., big 10, they don't even fill out the top 25 b.c.s. rankings on a weekly basis. they give it to their sports information director. steve spurrier is on a golf course or watching film. i totally believe it. he's not the only coach to just casually dwlans at an all-conference ballot. he's not the only one. >> i don't care if he did, didn't, made a mistake, gave it to someone else, it's irrelevant. did you need the stand up there and apologize for that? this is a poll preseason. it means nothing. tim tebow will not play better or worse because of this. >> tebow, there's so much talk, he's almost a cultural icon as a college student. i think you had to address it because it's tebow. as silly as that sounds. in most cases i would agree with you, but i think spurrier was being forthright. >> next time the ballot should have tebow, tebow, tebow, tebow. we asked "sports nation."

you said? >> i do. >> i don't.úúxx  . the following is a man' presentation -- >> even though he is still the manager of the washington titles, still alongside jim riggleman's name, also the batting cage, tim johnson taking some cuts for the san diego padres, the nationals with ryan zimmerman and company look to make san diego a victim tonight in the win column. "nats extra" coming up right here on masn.   . welcome to "nats extra" pregame, brought toy by verizon

wire please less, after that debacle we had last night, the game only got in 6 innings, you see some of the activities of the grounds crew getting this ball park ready tonight for san diego. only time they'll be in town tonight ready to play here at washington and i'm sure the fans here look forward to seeing this ball club. >> i'm not sure about that johnny. the padres, they have 10 people on the disabled list, jake peavy is on the disabled list, they are almost their whom offense has just been riddled with injuries, first baseman, third baseman, catcher, so they have played terrible. but the padres have always been a ball club you like to watch play, the last two or three years they have struggled with being able to produce runs though. >> johnny: the 234589s have had terrible luck with the weather, the only one 3:00 or four games have been actually postponed and rained out but last night's game ended about midnight or so

when they just felt the field was, you couldn't play on the field, it was the st. louis cardinals winning it by a score of 4-1. >> yank eel got a fastball, just barely fair to plate another run. we did have eight hits, johnny, against wayne right who has developed into one of the best hitch ners 2 league. >> if you look at the total rain delays this year, 16 of them, a couple of postponements, four games called early, 30 hours and 301 minutes, a total of 1831 minutes of baseball wiped out because of the weather. >> ray: you and i always say we don't do no overtime. >> johnny: we did last night. >> ray: we have done overtime this year. >> johnny: but tonight is another night and a new ball club comes in town. san diego limb p's in. let's go back before we talk about the padres. colin balester, could you get a

read on what he had or how good he can be, with only a couple innings on the mound. >> i couldn't. i listened to what he said on his interview. the ball hit hard was a fastball a wave, that breaking ball, that probably shouldn't of scored, he looked pretty effective other than the base hit to left field, which was away from him, this pitch got away from him, wanted to go down and away and went right down the middle. yank eel wanted to jump all over it. he has got a great arm, i do know that. >> three innings, two hits, three earned runs, walked one and struck out two. we're gonna -- at least he hopes, jim riggleman hopes to see more from balance balester as the week rolls on. >> he went and struck out seven people. manny acta said that was the best stuff he had seen in all the time he has been with the

expo's going all the way back to pedro martinez. this guy does have great stuff. >> johnny: is it usual for him toe change his delivery, he has a different wind up, gets that leg back further. >> ray: it's not unusual, it's unprecedented but it is a point of being comfortable. balance sister said it didn't feel that much different with him. the key to mechanics is to repeat your motions and delivery and they think this gives him a better opportunity to be more consistent in his mechanics. >> don't know a lot about the san diego padres, you don't see that much. we dough know they have got a five-game losing streak, they have lost 5 straight but they have beaten nats five times when these clubs have met. >> ray: we mentioned all the guys on the disabled list, 11 players right there, 3-17 record in july, we have a better record than they do and they are just anemic offensively.

they have only scored 350 runs, last in the league. .230 batting average last, 738 hits is last, and their pitching with peavy out and three others of their starters out is next to last so they have not been able to do anything or put anything together. but mainly because of injuries. you can't have that many on the disabled list and field any team. >> johnny: what about the nationals knocking off three ball games. >> ray: this is the first time this year i've felt we have the better ball club on the field and our club is better that in ball club at this point, no question in my mind, a matter of going out and executing and racking up three runs in a row. i feel positively. i haven't felt that in year, we're a better ball club that in ball club we're facing. ron johnny the hitting coach for the nats looking forward to seeing his brother out there. >> ray: there's nothing like

those reunions, he is not gonna get a chance to play, not gonna get a chance to see the best padres offense play, he is out and edgar gonzalez got hit in the head. if you have 11 guys and 4 pitchers on the dl you're a makeshift team. >> johnny: a shutout, the fp company 13, i had the pleasure to throw out the first ball at the maryland state american legion tournament at shiply field. >> ray: i have been working on my arm and i'm afraid i'll hurt somebody. >> they said can you get ray night to come out, i said i can't commit for him but the answer is yes. that's can "nats extra" pregame, game one of the weekend series against the san diego padres. we'll be back in just a minute. ♪

♪ tell me who's watching. ♪ i always feel like somebody's watching me. ♪ (announcer) it's right here. it's easy.  "nats extra" pregame. let's look at the san diego

padres lineup. kevin cows man off, the third baseman .986 percentage fielding, although he went 0-4, he is hitting over .300 the last nine ball games, led the club with 6 homers, 10 r.b.i.s in the month of june. tony gwynn jr. will lead off edward cabrera at short top, adrian gonlz the first baseman, kouzmanoff will be the clean-up hitter, felice rodriguez the second baseman, alfonso catching and matt lath toes on the mound tonight for the padres. now for jim riggleman, and the nats try to get back on that winning track. adam dunn 3 for 3, that rain- shortened game loss for the cardinals. last three ball games, adams 6 of 11 on a six-game hitting tear and a 476 clip. willie harris at center field, nigeriaer morgan gets the night

off. guzman at short, adam dunn and nick johnson, josh willingham in right field, josh bard will catch alberto gonzalez the second baseman and depending will be on the mound. mark swriker man from the washington times in the hot corner and i guess a hot topic would be the trading deadline is coming up and you've got some names that people may be interested in. >> yeah, there's actually a few names on this team given, you know, considering how bad the team has been over all this year, there are actually some attractive candidates. the names that we have heard a lot about are adam dunn and josh willingham. certainly there's some interest in them. but i think more likely some of the lesser known names, joe beimel or even willie harris could draw some interest. beimel is in the last year of his contract. the proven left-handed reliever and a lot of teams really need one of those guys come the

pennant stretch. willie harris, his versatility. everything he can do for you. he is signed for next year but only making 1.5 million each year and won a world series with the approximate. there is some interest in those guys. the guys hike nick johnson, adam dunn, josh willingham, if the right offer came and the nats were blown away he might make some moves but i don't think he is going to actively look, these are guys who are signed for multiple year and willingham is under their control for a couple more years and played quite well. i don't think they are going to be actively look to go move those guys. >> ray: do you think there is a possibility of trade with the plethora of young pitchers we have. >> it obviously has become a position of depth now that there is to go. i don't see them. this is what they are trying to build upon and i don't see them trying to tear that down right now. could johnny lannan help them in a pennant race, yeah, but he

is too valuable to this team. they have built upon young pitching. what they need to acquire, they got to look at position players who are either major league- ready or close to major league ready, aa, aaa, they have got a lot of prospects at the single a level, they don't have a lot in the upper level, position- wise. >> johnny: mark, how much does youth and money play into the whole equation here when they are looking at this trade deadline. could they go younger? >> i mean it's already a young team to begin with but certainly any move they are going to make is going to be trying to get even younger, you want young guys you're bringing in. at the same time they are not in a situation they are trying to dump salary. >> johnny: that had good to hear. >> that's not really the situation they are in. they are not going to dump a guy just because of the money that he is making. this isn't one of those cases of fire sale.

>> and descry the whole ball club. >> thairtd theamplet. if somebody fits into the overall long-term outlook they are going to keep them. >> ray: do you think they'll look at freeing to enhance the shortstop, second base, you think they are in that position yet. >> i do think when you get to the off-season you're going to see them be more aggressive. for one reason you're going to have contracts coming off the books, kearns is 8 million, off the books, neat reyoung is 5 million, nick johnson, if he doesn't return is 5 1/2 million, that's a good number to start with, that is to presume they don't add to the payroll. which is low in the major leagues so far. they are in a good position. i think they feel like the best way to build this team long- term is through the draft and through trades, but i think free agency is becoming more of

if of a factor. >> i know the fans really enjoyed your analysis. that's good inside stuff. we like that. mark, appreciate you coming out here. mark zuker nanna the washington post. debbie. >> reporter: well die here, johnny clipper had a busy day already. tell us a little bit about your outing with the habitat for humanity folks. >> it was fun, i got to get out there kind of hands on, help them, they were building a house for, you know, families that need a little help and you know it was great to get out there and see what it's all about and get my hands dirty. >> there are so many homeless people in washington, d.c. and a lot of poverty housing, that's part of why habitat for humanity is trying to build these homes. does it amaze you that in this day and age there are still people that don't have homes?

>> it is and you know you see it, you see it on the streets here in dc a little bit and, but you know it's good to see they are trying to do something about that, and it's good to get out there and just, you know, use this outlet as a big leaguer to go out there and, you know, see what it's all about and help the community and get your hands dirty a little bit. it is very awesome to be able to did that. >> deb: are you looking forward to the volunteers coming here to the ball park in august? >> yeah, they were hoping i could give them a little shout out while they are here so i'm looking forward to seeing them again and i was glad to meet them today. >> deb: how about for you, taylor, baseball-wise. this has been a unique experience for you going from a starter to a reliever and are you really irk that role as a reliever? >> yeah, i mean i've enjoyed it so far this year. it's, you know, it's been a little bit of a change of pace but i've enjoyed it trying to kind of establish myself here in washington and you know,

hopefully we can get some wins along the way. >> deb: you've got an e.r.a. of 4.25, you have got four pitches, does that help you be an effective reliever. >> i think so. you don't see that from a lot of guys, but i need four pitches to be successful. i'm not a guy that throws 95, you see that out of the bullpen, a lot of guys are throwing harder but if i can use all my stuff i think it's a big advantage to have those four pitches to go to at any time, for me that's what i need and so far so good. >> deb: finally what would you like to accomplish in the second half of this season? >> i think, you know, i want to be more team-oriented as far as being unselfish, trying to you know hold runners on when i'm coming in and not really worrying about giving up my runs but just, you know, trying to get wins. this team needs wins right now and that's the most important thing i think for all of sushi bar with friends to come together and play more as a team and get some w's and finish out strong. >> okay.

>> deb: okay, i like the sound of that. back to you gentlemen. >> johnny: thanks debbie. the holds leader for the nats, beimel has 10, congratulations to joe. just as joe beimel keeps the team in the game you too can stay in the game with just for men hair color. we'll step out and come back. have you ever thought about going to a suite? we'll take you inside one when we return right after these messages. sengers... each with an average speed of 590 mph... sengers... almost as fast as you. nothing's gonna hold you down. grab your bag . it's on™west so our low fares stay low. ( ding ) book now at southwest.com.

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 . >> johnny: we're back at nationals park, when you talk about a ball park few compare to this. we talk about suites. darryl murphy is your tour guide from the nats staff. >> hi, this is darryl murphy from the washington nationals. today we're going to show you what the suites look like. so please follow us in. inside here is our washington

suite and these are our lowest- level suites. all the suites in the ball park are built from dugout to dugout and all levels, three levels that we have, and they all face behind home plate. the value of that allows our viewers and fans to make sure they have a great view of the ball park at all times from the luxury of a suite. as you can see we have granite marble tables, chairs, leather chairs for the privacy of sitting down and enjoying the suite it. at the same time these windows open so you can get a full view of the game and a good feel of the game. as you come outside you can see what the true luxury of luxury suites means. it means high-back leather chairs, the comfort zone of having the best seat in the house, tables to enjoy food and drink, and a wonderful view of the game. it's not uncommon for foul balls to come right through some of these suites.

it's a great way to watch the game whether you're doing business or entertainment. as you can see all the refrigerators come stocked to order. some of the best feedback we have got from our customers is the wonderful experience they have come to enjoy at nationals park. this allows them to enjoy the game and understand on the field that, eh, we might win, we might lose, but we know that we're gonna have a great time when we come. here in our party suite this is where we just rent these out for individual games and it allows groups to come in together. you can see it's a little bit different in terms of layout and texture. these chairs that you see, they are the same ones we see for our set on our masn booth here at the park. so we use the same pieces everybody else uses to make sure we get the comfort zone we need to have in the park. as you can also see these suites unlike the other ones are connected. they can hold up to 300 people in all 10 suites that we rent out. just about 35 people apiece.

if you come outside, the same kind of view as you get to a game anywhere else in the park. as you look over everywhere you see it's a wonderful wonderful view. everybody is able to see the game effectively. . >> all of our suites offer the nanna a wonderful wonderful experience at a very high level. now in conclusion i'd like to tell you over the course of the season we entertain all kinds of people here in washington, d.c., that includes the diplomatic corps, congressmen, senators, military officials. and we're always wonderful and happy to have our wounded veterans. please come down the game and see us soon. johnny and ray back the you. >> darryl, thank you very much. wonderful wonderful piece on the suites here at nationals park. ray and i will step out for a moment. when we come back we'll touch on that gentleman, derek mock getting the start against the padres. the first of a big weekend series. come down to the ball park and be part of the fun here in nats

town.

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 . and welcome back everybod >> johnny: "nats extra" pregame continues here, johnny holiday and ray night. nats town usa as the nats try to get back on the winning track against the san diego padres. garrett mock will get the ball, had a pretty tough time against the chicago cubs his last start. >> ray: had a tough time getting his fastball over, but he has just dominated aaa, fastball 9 # and one of those yacing curve balls or yellow hammers, he needs to get some confidence because i believe he can pitch here. >> johnny: they did touch him, but 3.1 innings pitched that particular night. there you see his numbers as a starter, ray, 0-4. but he likes starting, that's where he thinks he is best. >> ray: johnny, actually that's his whole start from -- that is

his career starting. i was thinking that would include this year. he has got three getting followly pitches and has to settle in. everything about this league is you have to come up here and believe you belong. he knows that he is better than aaa, you know. a lot of times you say "he is a four a type pitcher," he needs some time to get comfortable. >> and what does the skipper expect from garrett mock. >> he is just a power pitcher and, you know, he just, you know, it's typical cliche stuff, needs to throw strikes, and in his case i think he needs to just let it go and let the ball do the work you know. >> ray, this is a golden opportunity for a lot of these young pitchers to show steve mcaddy, jim wriggleman, what they can do, and that they belong up here the rest of the year. >> johnny, there is so many people that get a cup of coffee to the big leagues and they just are never able to adapt the pressure. they have the stuff.

this kid has tremendous stuff, as does balance sister. last night we didn't see enough of him. but when you're able to throw the softball as he does down in the strike zone, pound the strike zone, don't walk anybody, you've got a heck of a chance to develop into a big- time major league pitcher when you throw the ball to contact. that's one thing that mcaddy has done here, he has 'em pa thighed that, the guys have responded, as a result they have done a good job. mercy, look at the -- >> johnny: look at the difference in the rotation, landon, olson, cabrera, as, lannan stammen and balance sister and mock and jd march tip the starters now. >> ray: we have had 10 different starters. mostly people go through 7 or 8, maximum, we are able to do it. everybody we have tried over the last two months have been 25 years old or younger so that's the forte of our future. >> so let's see if garrett mock can get the job done tonight.

the fans are ready. we hope you're ready at home. for ray and myself, johnny holiday for nats extra. coming up against the san diego padres. tdd#: 1-800-345-2550 "i'm rethinking everything... tdd#: 1-800-345-2550 including who i trust to look after my money." tdd#: 1-800-345-2550

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