>> yes, mr. rush. let me just say, mr. chairman, that with respect to the issues our view is that the ftc should act aggressively as it is doing now under the chairman's and to continue to enforce the law, be

a cop on the beat. be quite aggressive. and at the same time we are pushing all the existing agencies, working closely with them to do everything we can under existing authority. so i don't think there is any sense in slowing down. quite the opposite. the ms fishing consider a wide range of options pit reedbuck our basic view wise the existing system was fundamentally broken. we needed a quite large significant change to create one agency whose sole job was protecting consumers across the financial services marketplace. i think that the chairman is deeply aware of the ways in which consumers have been abused and neglected for quite a long time. and the existing structure is just an adequate to meet the

needs. the president's strong view was that we needed a new financial agency with that core mission that was strong and could achieve the goals. i think that the chair and a ticket to to a rticulated that eloquently in the opening remarks. >> law and incidentally creation taking place this will put a lot more question on the ftc. we have resources. >> well, i would say that during the perio d that the legislation

is enacted we're going to work very closely with the new agency. i think the period for transfer is summer between six and 24 months depending on how quickly they are ready to ramp up. we will continue to bring cases. i do think -- and i think that was always the notion. i do think that going forward, you know, we could use more resources. we talked about this in hearings. i do think that even after the agency is created, assuming it is, it would be useful for us to have concurrent enforcement authority so that if we are going after -- the bad guys don't always act in silos. sometimes they are violating the do-not-call rule and they are violating reg c or reg z which would go over to a new agency. so i think it is important going forward that when there is

ongoing consumer arm that we are able to jump over the kind of legislative france to help consumers and not have to wait potentially 120 days. we are working through a lot of these issues and making progress between our staffs and ourselves. >> the chair now recognizes the ranking member for five minutes. >> thank you, mr. chairman, and gentlemen of the panel. pleased to see your today. mr. leibowitz, welcome back to the committee. i know you been here a number of times already. i have to think you're doing a bit of a dance because you stand to lose some jurisdiction in the ftc. it seems to me that you are getting or at least under the proposal getting more money and authority to do less. and i want to know what your reaction to that statement is

given the fact that the ftc has dual jurisdiction, and that is to missions to ensure competition but also consumer protection. >> well, mr. radanovich, i hope this familiarity is not breeding content. >> not at all. >> look. if you read through our written testimony you can sort of see it is a complex matrix within the commission about what we support and what we don't. i do think from our perspective if you create this -- from my perspective, if you create this new agency and you also give us more resources and authority from the perspective of consumers they will be getting a good deal. we will be able -- we will continue to have a backstop authority with respect to financial matters. and we are going to be able to concentrate and just be more for consumers. we talked about this. we spend a lot of time. >> you are losing jurisdiction.

>> we it would be losing jurisdiction. >> how does that loss of jurisdiction to deal with your to missions of ensuring competition and providing consumer protection? >> i would say on the competition side we would be losing jurisdiction. we retain that jurisdiction. on the consumer protections side we would be losing jurisdiction to this new agency, but this new agency would be another cop on the beat protecting consumers. and then we would also be losing personnel. we have -- we have already lost a key personnel, i would say. >> it seems to me like you are getting more money and authority to do less. >> well, we'll do more. we really will. it is not a question from our perspective of moving. our guys work extremely hard. they have been commended by opm for always scoring high on the effectiveness and quality of work. and we will do more in the areas

where we have while retaining backup authority if the proposal goes through. we will do more in the other areas of consumer protection, and there is plenty to do. >> thank you. >> mr. burr, welcome to the subcommittee. in russia during the height of communism it was often talked about that there was not a lot of food on the shelves. and when you go into stores you might be able to get a loaf of bread, but if you wanted sourdough you probably have to have the standard loaf. you wanted rolls you get a loaf the bread. if you wanted something else. explain to me how you are not doing the same thing in the credit markets in the name of consumer protection. >> thank you very much. that is a terrific question. i was smiling because as you were describing the example, i spent some time in poland and had the same experience where

you go to the store and there is nothing there. you can actually literally go hungry. this has nothing to do with that, literally nothing to do with that. >> tell me. the credit markets. i'd like that answered. >> the new agency is in no way pursuing that kind of command and control model. it is in no way pursuing price setting. it is in no way saying you can't offer certain kinds of products. new agency. >> and i understand the reason for looking at this because we have all, you know, experienced this financial crisis, but doesn't this end up providing consumers with less joyous and driving up the cost of credit for consumers? >> with respect, sir, our strong view is that it does not. it continues to provide for financial innovation. consumers can get access to whatever products and services are offered. our basic approach is to reduce

regulatory burden by emerging authority. you can have won a super mortgage form at the time me of disclosure. >> but weren't there existing authorities that have and could and should deal with the current crisis that we are in? doesn't the added restrictions and regulations that you are going to be putting on the credit industry drive up the cost of credit to consumers? >> i think that the better judgment, sir, again, with respect, is that the current system we have had, that status quo was a dismal failure. i think we had evidence of round as of that. in our view was both for banks and for nonbanks, for consumers, and for household, the system failed. if you talk to -- and sure you do the community bankers in your community but have to compete against unregulated providers who were sucked into offering. >> large banks for money.

thank you very much. i yield back. >> the chair now recognizes the young lady from illinois. >> thank you. mr. barr, could you describe how we potentially would have been in a different situation today had this agency been in existence as the current problems started to a row? >> yes. i think we would have been and could have been in a fundamentally different situation if we had an agency that could set the rules of the road for everybody to follow, if we had an agency that could say to mortgage brokers, you can't get paid more for offering riskier, higher-priced, more confusing products than the basic product. if we had of rule that said mortgage brokers you have a duty of care you have to do best execution, you can't offer the mortgage that is the best deal

for the broker. you are supposed to offer the best deal for the consumer. if we said mortgage brokers said to have some skin in the game, they need to be paid overtime. securitization trusts have to have skin in the game so that you don't have a system where all the bad mortgages are made up front and eventually sold to the investor at the other end with nobody in the chain having responsibility, nobody having any of their own capitol at risk. so we could have had a fundamental change. we could have had of fundamentally different situation in which consumers are protected at the front end and the financial system is protected all the way through. >> and you are saying without any change in legislation beyond the creation of this agency that you would have the authority then under the bill which i have not read the early yet. you would be able to have done all those things? >> yes. this agency would be granted the authority to do all the things i

just described. >> did you want to comment on that? >> well, i just say, one of the things that is critical here is apa rulemaking authority. of course under the new proposal they will be able to do it for nonbank as well as bank related financial instruments and mortgages. so in the omnibus you give us and for which we are very grateful you gave us apa rulemaking for nonbank mortgages, and we are going to look at that and do have very good rule. and mr. rush, you have legislation that we expand our jurisdiction a little bit more, but it is only within the context of nonbank issue financial instruments. so 20 years ago we did a lot of matters relating to credit cards, and all the credit cards are now -- virtually every credit card is now issued by a bank. so i think that is a critical advantage from a consumer

perspective of what this new agency might to. >> let me just say that while i absolutely, in theory, and pulling it all together in one place is a good idea. you know, we have seen in the start up of the department of homeland security lots of difficulties in making its -- pulling it all together and making it all happen. the creation of a director of national intelligence. it certainly in that case many of us on the intelligence committee see a large bureaucracy developing. and it has some problems with the coordination that was actually supposed to happen. how can we be assured that this will achieve its goals, achieve it in a timely way, and not just be another bureaucracy? >> thank you very much. again, i think that our view is

the agencies that have the authority now should aggressively used as authorities. those authorities are inadequate to the task, the basic structure of the system was a dismal failure. we need to take this action. the legislation has tight time lance for transition. treasury has responsibility to make sure that transition happens effectively. you can come see me. you can come see secretary geithner. we are responsible for making sure you can hold us accountable. >> the chair recognizes mr. sterns from florida. >> thank you, mr. chairman. mr. chairman, we have had a lot of hearings on privacy here in this committee. and when i was chairman of the committee we had many hearings on privacy. and that they my concern is that

if we transfer some of the federal trade commission privacy work to this new cfpa particularly in light of all the expertise that you have. he had been the leading federal agency in the area for years and including financial privacy as well as the identities and information security. so with that in mind, what did you feel about this transfer? >> well, i guess that would make a couple points. this committee and you have been leaders on privacy-related issues. we will be transferring over a lot of laws. we hope to keep, sort of, a backstop a authority that is concurrent. and of course this is the beginning of the legislative process. and i see a lot of agreement on many things on ways to go forward. i think the way we read the legislation it was unclear whether issues like data

security and privacy -- i think mr. barr is representing today the better reading of the proposed statute or the reading in the way the proposed statute will move forward is that we will keep issues like that. and i think that is very, very important. >> i think we would still keep but in the theft. >> and financial privacy? >> financial privacy, to some extent that is up to you. we will keep the safeguards rule. but a lot of this has to be worked through. we will keep on doing this. again, we will have backstop authority. i turn this over to mr. barr who is one of the true architects of the plan. >> what you're saying today is that some of this is still up for negotiation. >> yes. these boundary issues. you have raised some of the same concerns that we have we saw that legislation. seems it is being resolved in favor of retaining the jurisdiction by the existing

commission. that is what this committee would be most interested in. >> just to add to that the chairman as direct. data security issues, identity theft issues, safeguard, red flags, all that would stay at the ftc. and the parallel authority for all that at the bank agencies, but the front end privacy notices that have to do with disclosure would fit in the new disclosure regime of the new consumer financial protection agency. >> so let's say internet privacy, consumer privacy, would that be part of -- would that remain with federal trade commission? >> with respect to that disclosure aspect on the financial side the disclosure would be unified with the disclosure regime at the new financial agency. all the data security, identity theft, and related issues would

stay at the ftc and the parallel authorities with respect to banks. >> if you are thinking about spam, spyware, marketing, we keep all of those. there might be some issues about whether we are going after a malefactor or a group of now factors, and one of them is on the other side of of the core nw agencies. right now there is a 120-day waiting period which we are a little concerned about from the perspective of consumers. going back to your original point a variety of issues including the core privacy issues we do, we'll be keeping and retaining jurisdiction. >> well, i think, mr. barr, what you should realize with all the expertise of the federal trade commission starting a new federal agency here. you know, i would think that as many point out, we are board about a new federal agency, particularly when you have an ve an agency that already has the expertise. at the bill says that the cost

of this new development of this agency is such sounds as are necessary. is there any more and defend test information that you can give on what the cost will be for this new federal agency? >> i don't at this time have an overall cost estimate for the agency or size estimate for the agency. it is something we are working on. we will work with the appropriate committees on and with. we anticipate that the agency will be pulling in staff and resources from the existing agency and additionally adding new resources as required. i'd be happy to continue to work with you on that question. >> any talk about the resources the agency will need besides -- have you identified any of the resources? >> we have begun the process of identifying the number of individuals and the other resources the agency would need, but we are not at the place now where i could give you even a reasonable estimate of that,

what additional measures beyond the transfer authorities would be required. it is something we are working quite hard on. >> al just close. mr. chairman, you might think as subcommittee chair this a lot of the expertise for this is already in the federal trade commission, and this is a new agency, and particularly in your jurisdiction here. i think we have to move carefully in developing a brand new agency. they don't know how much they're going to spend. they don't know what resources they will need. also they are going to be taking on expertise for areas they know nothing about that the federal trade commission has years on. so i just wonder as you, as a chairman, might want to be very careful and cautious about endorsing this new agency without, you know, more hearings on it and try to get more of the stakeholders here, perhaps more witnesses here to try to get into the discussion.

so i thank you mr. chairman. >> and the chair thanks the gentleman. there is a vote going on on the floor. there are three votes. we should delay this committee hearing until the votes are concluded and then return, unless the witnesses are under a time commitment. it's very important that you return. i will say within 16 minutes after the last vote. this subcommittee will reconvene. so the subcommittee. is that all right? >> yes, mr. chairman. [inaudible conversations]

[inaudible conversations] [inaudible conversations]

>> the subcommittee will reconvene. the chair recognizes the fact that there might be members of the subcommittee who may not have an opportunity to ask questions of our witnesses before we recess. however, we have to be cognizant of the witnesses' time, and we take this time. are there members who have not ask questions? the chair will prolong their questioning for seven minutes.

so with that, the chair recognizes for five minutes and two minutes of additional questioning. and the proposed regulatory reform, the department of treasury. the ftc should retain authorities dealing with fraud in the financial marketplace. insurance there is a whole language that appears to weaken ftc authority in this area. ftc would retain the authority to enforce against unfair and excessive acts and practices. however, the ftc could not add any step satori claims such as

the equal credit opportunity act. as i was first referring the case to the new agency and waiting 120 days for that agency to decide if they want to take the case. chairman, let me ask you. how would this impact the ability to improve financial fraud? could the fcc approved one while the other is under consideration? would you expect that it would simply not bother with additional climbs? with the cases be written if they only rely on ftc claims. >> let me go back. i think, mr. chairman, that is a great question. keeping in mind that we are at the beginning of the legislative

process, not near the end. those are questions that i think this committee will want to think through as of legislation proceeds for word. last week we brought a bunch of cases which we called operation short change. it was about scams that were hitting people in economic distress. and a lot of those were basically fraud claims. but one of them involved the electronic funds transfer act. i think it is reg e. now, reg e would go to the new agency. and so this would sort of invoke two parts of your question, or two components. one of which is what we have to wait 120 days to bring this case while there is ongoing? and in the second issue is

really what is the nature of our backup authority. i want to say i have been working through this with my staff. very, very productively. aboard on the hill for 13 years. i never wrote a piece of legislation for my bosses that did not change as it went forward. so i think these are quite precisely that question is that we worry about at the ftc. we want to make sure that this legislation is as effective as it can be for the consumers that all of us represent. and so i think it's important - >> it seems that the ftc, the consumers would benefit more if the ftc did not have to solely relying on the so-called of

virginity. >> again, from my perspective -- i will turn the mic over to mr. barr in a second, but from our perspective if the backup authority is weak, and we have backup authority in involving the fcc and the see sec which we use very rarely, only when we need it. but here a couple of points. as the transition is happening as this legislation is created you, and certainly even after very good lawyers are transferred and attorneys and jurisdiction it is going to take a while for this new agency to ramp up. and i believe that they are going to want us involved using our backup authority probably earlier than later. we understand that they will have primary jurisdiction here, but i think it is very important that the backup authority would be robust so that we can help

out, and also so that we have these cases that involve malefactors that don't fit into the older silos that we can effectively go forward and stop on doing harm involving consumers. >> very cognizant of the fact. i have another question. we had lost some personnel. transferred. >> we have -- >> we have one or two people who have gone over. >> and what is the purpose? >> i'm sorry? >> what is the purpose?

i mean -- >> i think they are on detail. what does that mean? >> what is the purpose of them being on detail? >> i think i will turn that over to mr. barr. one person i know that is on the till to treasury is a fabulous attorney and really cares about consumer protection. ..

>> the 120-day measure is not like the existing authorities that the fcc using where it's the primary entity doing enforcement. this is a proposal that kicks in if the fcc is doing its work and finds a problem.

it can let the new agency know, the consumer agency know. it doesn't have to wait, like it does today, until it's gone through the invest grace and charging process. this is a chance for the fcc to let the new agency know about a problem that it sees that comes to its attention. it's a different mechanism. we're committed to making sure it doesn't delay cases. with respect to the transition issues, the fcc and banking agencies are committed to working those through and as i mention to represent schakowsky and you can hold us accountable for that. >> thanks mr. chairman and

welcome back. mr. lieberman, uncertainly is unof the key factors behind our current economic crisis. granding a new agency with this broad scope of power could place a dangerous level of uncertainty into the financial markets. do you think that it might be better to have an experience regulator such as the ftc with a long and trusted history of working with business at the helm of these new powers? >> as you know i'm very fond of the federal trade commission as you are. i would say that -- as you know i testified here a few months ago. we thought we could do the consumer mission involving financial instrument

instruments. the pro -- proposal has been developed with bank examiner components, compliance components. you know, again we are an independent agency. and so we will do whatever you tell us we're going to do. and then beyond that, i would to come back to any initial point. based on what we've seen in this marketplace and the restrictions that we've operated on, i do think that -- these issues were through and i believe they will be. i do think that having this new agency and the ftc both going affairness, deception, fraud, is considerably preferable to the status quo. >> we agree on that. i think the issue is how you go

about it. i will say that though that meeting the bankers in my district back home are afraid of this. i think that's the uncertainty question is a legitimate question. >> i do. >> and if it does bring the specker of increased management regulation over the industry to correct mistakes of the last year, but, what's it going to do the industry's willingness to get out there and unfreezely quickty like we are all wanting to? >> if i could add. this agency would have all the authority it needs not just with respect to banks but also with respects to nonbank competitors of those banks. so i understand that many banks

are worried about the scope of the new consumer financial protection agency. i think the additional upside for them is that the nonbank competitors will have the same high standard that they need to meet, the same level playing field, the same consistent rules. they don't have to worry. the community bank and credit union doesn't have to worry. >> that tells me are you broadening the uncertainly. >> no, i think what we're able to do -- >> it seems to me the uncertainty is being broadened not -- that doesn't answer the question about uncertainty with the banks. and if the banks are afraid of this kind of legislation. >> i think we are able to create a high already consistent, clear standard. we are able to reduce regulatory burden, for example, combining the reforms that drive everyone

crazy. we need a single uniform standard. >> i suggest you need to convince the banks. they are the ones expressing the real concern. i have a question. president obama has stated that a streamline assistant will provide better oversight, less costly, and would be better for regulated institution. the preexemption statutes create a floor rather than a ceiling. doesn't that mean we are looking at 51 different versions by giving the preexemption statutes to the state? does that not conflict with president obama's statement that we are looking at a streamline system? >> as you know the states have long played a important role. i think one of the upsides of living in our country that we have independent states. >> they haven't not had preexemptive status in this situation before. >> they have not been able to

apply state laws in some context to national banks. but they certainly have been very active in the consumer area across lots of different products and services in the past. >> you think it would lead to 51 different versions of this? >> i think we are much more likely to see a high standard at the national level. i think it's very rare if you set a good high standard that you're going to find it very rare for states to go off in their own ways. sometimes states are right. sometimes states protect consumer in innovative ways. we shouldn't block the ability to do what nay think in their judgment is right. >> all right. thank you. >> chairman, thanks to the witnesses. thank you for that. chairman, that was 7 minutes. >> mr. chairman, thank you for your generosity of time.

i'm sorry i missed the first round. i appreciate you letting me ask some questions. i did want to ask secretary barr, in your testimony you indicated that we need only one agency charged with protecting consumers from financial products and services. as one of the principal architects of the administration plan and proposed consumer protection agency you lay out a very broad and sweeping changes that were fundamentally change a number of government agencies including the ftc. however while this is still in the early stages there are some concerns held my members, including me, that an overly broad new agency will have the same effect of hitting a nail with the sledge hammer. these efforts under the guys, i feel, there maybe some different standards set for industries within this proposed agency. for example, i've heard that some suggestion that small banks

should be exempt from some or all the rules written by the proposed agency. and the drafted legislation con tines exempted authority based on asset size. is it the administration's plan to apply different consumer protections depending on what the customer transacts with a small or large bank an further more if you intend to carve out the small institutions what the types of rules they would be exempted from and what is the policy reason for carving out these institutions? >> thank you very much for that set of questions. i do think that our proposal does involve sweeping change. sweeping change that in our judgment is essential to protection consumers. our old system was fundamentally broken. and we do need fundamental reform. with respect to smaller institutions, we don't expect to see -- we would not expect that

small banks and big banks would have different rules of disclosure. but you may see differences in se how much examination or supervision there would be. in the bigger institutions as we do today, on sight, there are examer year around. you wouldn't want that for a small bank. you may see differences like that. but not differences in the basis standards protecting consumers. so if you walk into a bank or walk into a credit union or walk into a big bank where you go to your independent mortgage broker or mortgage company you get the same mortgage disclosures. so consumers can understand what they are getting. >> chairman, as you outline in your testimony, there will be a number of changes to the ftc. as a result of the consumer financial protection agency, if that becomes law. many responsibilities will be pulled from the current

jurisdiction of the ftc. and they will be given to this new agency with all of these proposed changing, what then will be the role of ftc in this new landscape? how much will be duplextive of this proposed agency? you guys are doing a good job. we are appreciative of that. >> we appreciate and are hardened by what you said about our agencies. we have terrific attorneys who care and commissioners who are also committed. we'll still have -- let me say we'll still have all our competition authority. we will continue to do all the other things we do. whether it's fraud or privacy outside of the financial context. or, you know, advertising and marketing practices. and then we'll continue to say involved here i think specially

during the transition period and hopefully beyond with concurrent jurisdiction. you know, look, there are as we know in in room as you guys know, there are a lot of bad actors out there who are trying to rip off american consumers. and so, you know, by growing the federal ability to go after these malefactors, you know, that can only help even the playing field. right? what we do at the ftc, and i think we do it really well, it's a triage. we look at different potential cases and going through an investigation and we say which one can we best leverage, which are the greatest harm to the greatest number of people, which ones might make better -- change bad cases. we're always making decisions based on sort of the lack of resources that we have. we try to do the best job.

>> let me reclaim the time. i want to ask you one other question. we don't disagree. we're not needing the oversight. it seems to me that in this current crisis and all of these bad loans and toxic assets, that the oversight got really heavy after the horse had already left the barn. and that's kind of a concern. and it was always the concern that oversight becoming too much so restrictive after the fact that these institutions particularly your small banks and lending institutions can't function. and i certainly see this across my district in privately held banks, all banks that are the oversight should have study and consistent. and it always should be. but when some catastrophe occurs

because somebody was not mining the store, then all of the sudden the oversight coming down on these institutions to the point that all of the sudden they go out of business and it hurts the local community. let me just ask you in the time i have left, you mention to us what the ftc would be able to continue to do. what percentage of what you currently do is that? that respect 50% of your current responsibilities? 25%? are you losing more than 50% of what you are currently charging? >> no, i think it would be more like in terms of resources, i'll get back to you with the response, but i would say it is more like -- it is more like 5 to 10% of what we do. and of course it's been an area

as you know that we've been concentrating on more and more. many of the consumers are suffering from -- many of them are suffering -- >> i would appreciate it. >> i'll do that. it's -- >> it's important that we know. mr. chairman, thank you for your patient and generosity. thank you witnesses. >> again, the chair thanks the witnesses for the use of their time. you're very generous. we want you to know that you are significant to this process. we thank you for testifying today to help us move along on this important issue. so we will be in touch with you in the future. and the chair wants you to know that we will -- all of the members in 72 hours to ask

questions and writing and the response in a reasonable amount of time. we appreciate it. thank you so very much. >> you've been watching an hearing on an obama administration proposal to create a new consumer protection agency. they would take on the oversight power of several agencies. that hearing will continue in a moment. now an update with a capitol -- >> with the administration looking to create a new consumer financial protection agency we are joined by michael. why is the administration proposing this? what's this supposed to do? i think one of the key problems of the financial crisis and at least in the administration's perspective has been the abuse of products, the mortgage loans and all these financial products that flooded the system. people got excited. a lot of credit was extended to people who couldn't afford it.

they wanted to address the problem. >> and treasury secretary geithner, why has he said that is a stand-alone agency? >> i've think we've seen regulation for consumer protection has been shared by the various federal -- it's an alphabet soup of regulators who are in charge of the safety an soundness. we have seen the regulators focus more on keeping the banks healthy than protecting consumers. >> what about lawmakers? how are they responding? >> i think anytime you want to create this, it's going to create problems. many democrats support this. it's going to be a matter of working out the details. think i on the democratic side, it enjoys widespread support. republicans oppose it as would be expected. so you're going to see basically along party lines when we get

back in the fall. >> what are republicans special concerns in opposition to this sort of thing? >> they say it would limit choice for people. it would cost too much. the supervisors would be able to -- there's various arguments being put out there. you're seeing some of those same talking points. you have the banking regulators and the republicans and the banking industry all opposing this creation of this new agency. >> you wrote a couple of weeks ago that the chairman barney frank openly challenged the financial service industry for debate over this proposed agency. does he think that the -- that he can have some sway? >> oh, the financial industry is going to oppose this to the very end. they don't want limits to offer whatever products they feel they

can make a profit. a lot of these products aren't legitimate products. they are in there to get the fees for a certain number of years before they default. if you are barney frank or democrats, it's a pretty easy issue. are you in favor or consumers or the banks that have received billions in government aid? >> what about the fed, fdic, what role would they have? don't they have existing consumer departments? >> yeah, all the banking agencies have existing consumer departments. those powers would be taken away. most notably from the fed. it has comes in intense criticism, 14 years, it took them to write policies. by the time the bad loans that are causing us problems, all those loans were written by the

time they reacted. the problem is for years regulators they have the responsibility and they sort of sloughed off. >> when congress comes back welcome what's the timetable for getting this done? >> the treasury officials talking with them yesterday, they say they are on track for the end of the year for some sort of legislation. but there is part of a much broader effort. i don't see how they will meet the deadline. i think that are going to be hard pressed with everything that's going on in health care. on the other hand there's a certain window of opportunity for legislation this significant to get through and keep in people's minds the crisis we saw last fall and how important it is to make changes. thank>> thanks for joining us.

>> thank you. >> the chair welcomes you to this hearing. the chair apologizes for the inconvenience that you might have while we were on the floor voting. we will assist you. thank you for being here to testify. i want to introduce our witnesses and i'll begin on my left. mr. gail hillebrand is the senior attorney and management for the financial services campaign for the consumers.

sitting next to her is mr. stephen calkins, you were the associate vice president for the academic and professor of law at wayne state university. next to him is mr. -- who is an associate of the professor of law and the university of minnesota. and sitting next to him is rachel barnou. and last but not least, gentleman with the smiley face, chris stein better --

stinebert. we want to welcome you to the committee hearing. would you please rise and raise your right hand? do you swear to tell the whole truth and nothing but the truth? let all the witnesses respond in the affirmative. you may have five minutes for an opening statement. we're going to start with you miss hillebrand. turn the mic on and pull it close. >> thank you. members of the committee, you know consumers union as the nonprofit publishers report. our mission is to protect the consumers. my written testimony was joined by six national consumers

organizations. consumers want and need in the united states a strong consumer financial protection agency, a robust federal trade protection and financial services. we believe those goals are entirely consistent with one another. the goal is a better financial services marketplace and better government in financial services oversight. we have to face it, the current system doesn't work. it's not delivering products or encouraging products that are understandable to the consumers who use them or that meet the responsible expectations. instead we have banking and multiple regulators by the type of providers. we don't have much of open public enforcement expect by the ftc. and finally we have features in

products that are squeezing their ways through the laws. i believe the job of government is to serve the people. we are not here to talk about more government, we're here to talk about better government. our system isn't designed to do the job. it's spread out over six or more agencies with a hodgepodge of rules. that is just not a system designed to match the realities of today's market. we want to give the federal government a different and new job in financial services marketplace. and that's to promote a fair as well as an efficient financial services market, to watch for the market to prevent harm's as they start to develop. i come from the great state of california where the option and some of the other products that have gone sideways were pioneered.

you can only wonder if someone was watching more closely if they would have spread. the right mandate is to promote fairness with accountable and access. and notice i say promote. it's a different job from what the federal government has had before. and with the cfp, we can get information, learn about the market, watch the market, and make a conscious decision about what needs to be regulated and what doesn't. and which regulatory tools to use. and then apply those tools evenly, no matter who's providing the product. with the cfpa, we can have one agency watching, faster actions, one agency product within and one place for your constituents to go instead of the alphabet soup now. the model is one federal rule

maker but multiple enforcers. that brings me to the important. i would like to say i would a summer law intern at the ftc longer ago than possibly relevant for today. i just wanted to mention it. we keep the authority with a simple -- regardless of the topic financial services or not, with a simple consultation that can be at the staff to staff level. it keeps its authority with respect to all the statutes it now has with the referral process. that's a refer and wait process. but they are not waiting for a yes or no. if the cfpa does not take con things, it can bring that case. the cfp cannot say no. we have made testimonies that the statutes should allow to wave that notice or shotten it

by individual case, by type or category of case, and by agency so that they can work these things out where there are conflicts, for example, the tell marketer case. we are recommending the ftc be given the authority with a secondary regulators. not writing the rules, but helping enforce the rules. the ftc does need it to right the rules in financial services, but that has not been a role they have been able to use widely in the last couple of decades. they keep all of their enforcement, and of course it will be made stronging with the aiding and abets. we believe this is the only way to put all of the products under the same set of rules. i'm conscience of your time. i do want to say i think it's very important what the ftc does

right now in the recession. it's very important what they will continue to do after the transfer of authority in the cases. and we'll be extremely important what the ftc does with its additional authority. there are a lot of things the ftc can do right now to help, including cleaning up the problems with recording errors, the work we are beginning to do, and the modification and forclosure, debt collection, settlement, all those things will remain important. >> thank you very much. you have five minutes. >> thank you. chairman rush, thank you. >> can you move the microphone closer? >> is that all right. >> it's not on. >> push the button. thank you. a special thanks for the technological advice. chairman rush, ranking members of the subcommittee, thank you

for inviting me here to testify about this information matter. of the pro posed legislation would effect sweeping changes in the federal trade commission. the key to the bill is in the machines and they are written extremely broader. apply those deaf definitions and working your way through the bill you find the bill would transfer out of the commission much of the work that federal trade commission now does giving those responsibilities to the new agency, and giving it the exclusive authority to prescribe rules and issue guidance with respect to much of what the bureau of consumer protection does. if you take the ftc's most recent annual report for 2009 and turn to consumer protection and start reading what they have been doing, subprime credit, forclosure rescuing, mortgage

advertising, debt collection, payday lending, operation clean sweep, operation telephony, the payment systems, nationwide connection case, global marketing case, so on and so forth, prepaid phone cards or matter after matter of what they have been doing. i read the bill as saying that all of that would be transferred to the new agency. the majority would have major change if you read the bill carefully, you would find that some of the anti-trust would be transferred. i assume that's a mistake. but that's how it is written. why have the sweeping change in what the federal tradition commission does? it might make sense if the federal trade commission was the bad agency that was doing bad work. the federal trade commission is a good agency that has been doing good work.

it has unique bipartisan structure, and it brings the best of both perspectives, and it has been doing important work for a very, very long time. transferring responsibility from the federal trade commission to another agency obviously creates some pretty significant risk. my rex is to proceed with great caution, to weigh those risk to decide if they are worth running, and certainly if they are to work very hard to try to minimize those risk because the bill as written would make major changes and you need to be very careful to make sure that all of this makes sense. thanks very much. i'm happy to answer questions when the time comes. >> thank you. >> thank you, mr. chairman, and

remember. >> >> we had a disaster of previous system about someone committing suicide and people who's family committed suicide after i work with them have heart attacks from the stress. millions of people experience this. our federal regulatory system did not respond to that. this is not dominated completely by the thinking and needs of the lenders and sellers and not by what was happening on the ground. it is often said that no one could have seen this. the people who were working with the victims of subprime lending and talking with the people who were reflecting the experience as well as the others who were subject to the abuses absolutely knew what was going on and was screaming at the top of our lungs. no one was listening.

it was predictable, and it was preventible. the consumer financial protection agency offers the first hope in generations. certainly in my adult lifetime. for an agency with sufficient power and focus on consumer protection issues to seriously address these problems. it gets it right in terms of its model. it sets you have a unified rule making process. it's not about the ftc was good or bad. it's about the fragmentation of the authority and the lack of perspective in a unified rule maker. he gets it right. and setting the floor and allowing innovation where innovation should occur. and it couples that with an open enforcement system. it allows the enforcement of those clear unified rules to occur in multiple places. there are two reasons you want that. the first is that you compare the proper enforcement agent, public enforcement agency, with

the problem in hand. if you have a problem in indiana, the indiana attorney is the right place to do it. it certainly won't get taken care of if you allow a federal agency. conversely, if the indiana problem turns out a problem that appears to be nationwide, that can highlight the need for the agency. the agencies like the ftc and state attorneys will bring violations of rules ancillary to other investigations. because these things don't come up. so an open public enforcement model which is what this bill has by allowing federal trade commission to enforce the rules and state attorney generals to enforce the rules. i will make two quick comments. one about the details of the enforcement mechanisms and the other about the rule making investigator authority. the rules in the bill are

excellent. however i agree politely with leibowitz. it needs to be streamlined and made more efficient. secondly, and this is i think is a very born point, in the bill the ftc is given the authority to enforce federal consumer credit laws but not the regulations past by the cfpa. the cfpa regulations will become more important than the consumer credit regulations. it's critical the ftc get the authority to enforce the regulations that are passed. there's also a consulting power in there. there's a requirement, and that's correct and i hope on an informal basis the agency takes account of the affect that the fty makes you -- and gains a particular type of experience of

understanding that's vital. the mechanisms need to be clarified. the section is unclear whether those are stapped into the enforcement. finally in its rule-making authority the new cfpa needs detail and express and clear investigatory powers. otherwise the data is that is brought to the rules will be data held by the industry that the cfpa doesn't have access to. so it's critical they have the power to get the rules right the first time. i really appreciate the opportunity to be at this historic hearing and i wish the congress great luck in making this project work. >> thank you very much. >> thank you mr. chairman, and

members of the subcommittee. i'm honored to have the opportunity to discuss this piece of legislation. the agency act is of course the agency it creates. whether this act will succeed or fail will depend on the agency it creates will succeed or fail. i therefore analyze the structure and powers of the cfpa to determine if it has been designed to achieve its stated statutory mission. i take no position on the merits. rather my focus is on whether the cfpa. in that regard i'd like to make observations. my first recommendation and the most important is to add a provision to this act that would limit the cfpa board's member to no more than three members of the political party.

including the ftc, the sec, and the consumer product, does not require political balance. there's a wealth of empirical studies that are demonstrating a group comprised of like minded people tends to do extreme rules. they need to be able to change positions from one extreme to the other. and certainly the consumer financial markets. it is astable losing can lead to dissenting opinions which is valuable for alerting congress and the public if the agency goes in extreme direction one way or the other. the cfpa need to consult with all federal agency and other agencies before passing rules to

make sure the rules will be consistent with the objectives of the agency being consulted. because this consultation sweeps so broadly covering the agencies and anything of any importance to that agency, this process is likely to delay the prom grace. the requirement that aids the agency rules of years. unless congress is of the view that the legal uncertainty is outweighed, i suggest making clear that the consultations at the disdiscretion. third, i advice modifying the act from the time they discover the violation not from the time the violation has occurred. because violations are not discovered for years in that cases. this provision might hamper the cfpa in its unfortunate effort.

i recommend the cfpa bored members to practice for a period of time after their service on the board is expired. this kind of restriction would limit that are caused by having a revolving door between the agencies and the industries they regulate. fifth, i would like to highlight a protection to receiving the enforcement objectives. that's section. state a.g. have demonstrated they can be effective law enforcement partners. i think that is true in the area of consumer protection where agency captures a significant risk. finally, i'd like to alert the committee that's it's unclear whether the cfpa will be -- including review by the office of oira. there is language in the act that suggests this will be an

oversight agency. congress may intend to be part of oversight process, but if not the act would be need to made clear for the purposes of oira review. i take no position on whether or not the agency should be subject. but because it's a fundamental question i note it's currently unclear in the legislation. thank you again for allowing me to testify and share my thoughts. i'd be happy to answer questions when you are all done speaking. >> thank you, mr. chairman. and thank you for the opportunity to speak with you today. i'm very glad to hear this is kind of a first step? hopefully which will be a long process. because as many have expressed here today there are some concerns about the issue, and we hope there will continue to be somewhat of a caution approach as we forward. the american financial services

association has been around for almost 100 years. we represent 30% of the credit in the u.s. with members in the mortgage, credit card, auto, and personal installment loans. first and first most, we support strong financial consumer protection regulation. just because we have concerned going forward about the current agency does not mean that the industry and the association is not committed to strong consumer protection regulation regarding financial services. we believe that consistent enforcement of existing consumer protection laws by government regulators would have greatly lessened the impact on consumers and economy. many members are regulated at the state level and subject to patchwork of requirements. we firmly believe that the

consumer protection should be uniform in every state. therefore we support strong national consumer protection standards that allow the members to meet their consumer protection obligation in an efficient and cost-effective matter. in addition, strong national consumer standards will provide an benefit to consumers only to the extend that they are consistent with sound potential regulation. consumer protection that threaten the safety and soundness offers no real >> what to watch for.

tomorrow on the road to the 2010 world cup in south africa, the united states' men's soccer team takes on mexico, a rival like no other for the stars and stripes. the challenges include the altitude, the fans at estadio azteca and history which favors mexico at home. this will be the sixth of ten matches for the u.s. in the final round of cob ca calf world cup qualifying. bob bradley's men stand in second place two points behind costa rica in the standings. if mexico wins they'll make it interesting and get to within a point of the american, but if the u.s. wins it will be an historic turning point. we have a report from mexico city. >> estadio azteca as impressive and imposing a place on this planet for a sporting venue. it is at at tiewld. you've got the temperature in the summer. you've got the smog. this splais where the united states national team has scored just one goal in the last quarter century. they have match tomorrow with the mexicans. welcome to mexico city along with alexi lalas.

we'll talk about that and john cutcliffe of espn deportes, bob lee. we went in there a few hours ago. i couldn't believe it. you stand there. it literally takes your breath away. you've played here before those fans at this altitude in that stadium. what's it like? >> it's thrilling. you've got the altitude. you've got the heat. you've got the smog. then you're playing against a very, very good mexican team in front of over 100,000 people. it's kind of like mad max beyond thunder dome. if you remember the scene where they come in and i expect to see tina turner in there with her thumbs-up and thumbs-down. it's a coliseum. it's unlike anything i've ever seen or unlike anything i've ever played in. >> there's so much pressure because of the standings where mexico sits, fourth, no guarantee they're going to south africa. it will be without rafael marquez on the back line. >> it will affect not having marquez. carlos martinez who plays on the left side will have to play center. he's the leader. even though he's been here for nine games and marquez hasn't

played since the columbia game, i think they're used to no marquez because he hasn't been available for months. >> the united states has never really been in this position, perhaps a favorite in mexico city. >> this is amazing. when i used to come down here an play with the national team, it was pretty much assured that mexico would get the three points. yes, we believed there was a possibility, but right now when you talk to these american players and you talk to the coaches and when you talk to american fans, they believe this could possibly be the moment in history when this team gets the first win. it would be huge, not just for their confidence but also the three points. as far as i'm concerned, if the u.s. were to get a win down here, they would almost be assured a trip to south africa, even if they get a point. if they lose it's not the end of the world either. >> one point in all time. we'll talk about that tomorrow on the "sportscenter" center. espn deportes has been talking to mexican sports fans and crisis is lagging here. >> yes, there's a lot of crisis. this game will be played at night. they said 3:00, you know, you have to take advantage.

the u.s. will have a hard time with the altitude, even the smog, and just one of those things that mexico has to win. if not they're going to try to find their ticket on the road, and mexico recently on the road, they're not winning. >> you can't change the altitude, but i tell you one thing, it is very mild here. it may very well be that way tomorrow, topping out at 75 fahrenheit today. by mexico city standards, the air is almost pristine today. so two of the three parts of the advantage may not be there for the match tomorrow for the mexican team. coverage throughout the day on "sportscenter" and a "sportscenter" special before the match at estadio as techa. we'll be here at 3: 30 eastern time. this is a spectacle of sport you've got to see it to believe it. u.s.a. and mexico. we'll be here. >> gracias, gentlemen. our family of networks have got you covered when it comes to the key world cup qualifier, u.s.a. versus mexico. don't miss the "sportscenter" special at 3:30 eastern on espn tomorrow afternoon. plus we promise complete pregame

and post-game coverage this wednesday right here on espnews. >> coming up, beat up and battered, the eagles can't go a day without an injury. up next the bus takes a pit stop in philly where chris mortensen checks out the banged-up

>> you're not going to hear someone in an nfl front office very often, but on day one of

eagles' training camp, he wasn't shy about the team assembled for 2009. he said, "it's the best roster in football." the only thing certain about the's sls they have the most injured roster in football, but that's just to this point. chris mortensen joins us now as the bus tour takes a stop with the eagles. the injury are mounting, mort. what's the feeling in philadelphia about what's going on there? >> there is a different reaction. if you talk to philadelphia fans and media, it's like there goes our super bowl, but they haven't even played their first preseason game yet. i did not detect any stress or duress from the eagles when i visited with their coach, andy reid, or their players today. you know, listen, they lost stewart bradley, a very valuable linebacker for the season. it was a non-contact injury. cornelius ingram, the draft pick from florida, the knee, i don't know how big a contributor he would have been anyway. the loss everyone wonders about is defensive coordinator jim johnson, his death, and how sean mcdermott will fill in, and the one they're serious about is

sean andrews, their pro bowl guard who has some back problems. if he's not on the field in a couple weeks, then it will really bother them. they think they have the best offensive line in football but sean andrews would have to be part of that. >> an they have really great running back in brian westbrook, but he's not practicing yet, overcoming some injuries. >> they're waiting for the doctor to clear westbrook. andy said, then you ease him into it. get him ready for the opening of the regular season. they expect him to be ready for the opening of the regular season. they have a nice rookie running wrack behind him from pitt, lesean mccoy. he came out early. some people think he wowiveg a first-round draft pick if he stayed in. >> what changes for westbrook? is the workload going to decrease? will they try to protect him more this year? >> i think it just depends. there's going to be a point in the season where we know westbrook we'll talk about him missing practice time. that's way andy will handle it. correll buckhalter, who is doing

quite well in denver, he got his touch, too. the bottom line is their goal is to play 20 games or 19 or 20 games beyond the preseason. that means the super bowl. and they're certainly going to work mccoy into this thing if he learns the offense. you got to be able to pass protect in this offense, too. but they like what they got there. >> before we let you go, the spotlight never gets too far away from donovan mcnabb. he asked for offensive help before considering an extension with the team. they went offense heavy in the draft for him system he a happy camper these days? >> well, he was happy today because first day... this is first day andy reid did not have the team in pads as they get ready to break camp. he was head butting teammates in the huddle and playing air guitar and leaning on the fans. but let's go back to the original report. michael smith did the reporting. michael smith did not report he told the eagles, i'm going to wait on the contact to see what you do on offense. michael smith reported that donovan was going to wait to see

what they did on offense. this wasn't a demand that donovan made. en they drafted jeremy maclin, who signed late, but you can tell jeremy maclin will be talent. i saw mcnabb hook up with maclin for about a 40-yard touchdown pass in practice this morning. >> chris mortensen from eagles' camp as the bus tour continues. thank you, mortment >> thanks. >> and here's where mort is heading next. it's the jets' mark sanchez trying the vie for the starting role of quarterback. there it's t.o.'s town buffalo coming up, the giants and the ravens shortly to follow, as well, as mort continues his camp tour this summer. >> tiger woods is on a roll, but this week will be his last chance to win a major this season. top stories next on espnews. i'm racing cross country in this small sidecar,

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test test. >> hi there. the "1st and 10" crew here, dana jacobson, skip bayless and rob parker. do you like it, or love it? >> i like it. why not make the move? give pedro a couple starts.

if it doesn't work out, put jamie moyer right back into the rotation. >> are you sureúúxx  coming up on "o's xtra, game two of the three game series against oakland, cesar izturis brings a four game hitting streak into the game, and luke scott hopes he has found his home run stroke. chad moeller makes the start tonight behind the plate. it's the orioles and a's, it's "o's xtra" right now. it is a hot and humid summer night in baltimore and it's a big night for the fan base because it is brad bergesen t-shirt night and the fans proudly wearing the number 5 brad bergesen t-shirt.

welcome in, it's "o's xtra" presented by at&t. game two of this three game series against the oakland athletic. jim hunter and jim dempsey. birds looking to snap back. rick, when you look at the season, we knew what it was going to be all about, the younger players arriving in baltimore, they're part of the future, trying to work their way in and figure it out. we knew there was going to be inconsistencies. i have to believe that as the players go through this, they and the team are going to benefit long-term. >> they will. they're going to learn things that they don't like to see most of the time and it's losing. this is how you're going to find out what kind of players they are in the future. what nolan reimold is going to be like when he approaches next season when they wipe the slate clean. is he going to make some of the mistakes that he's made this year, and every single player has to look forward themselves. they've got to start rounding out into a much better ball club. they've dealt with losing streaks, they know what that

part of the game is all about, they've had to sit on the other side of the field and watch while those other guys celebrate all the time and you have to feel what it's like to be in a pennant race the second half of the season the first time. we definitely have got the talent here. these guys, once they get on that kind of a role and the confidence starts to build, the young pitching staff starts to kick in, they're going to remember all of these knocks. they can remember when they got the sand kicked in their face and they're going to react to it. i think we've got a very talented young group here. >> one of the key young players rick is referring to being honored tonight with his very first t-shirt night, that's brad bergesen as he works his way back from the dl. let's get an update on the progress and welcome in amber. >> well, the orioles really have missed brad bergesen. the orioles starting pitching just isn't putting the team in a position to win. it seems that orioles hitters are stepping into the batter's box and they're already down 4,

5, or 6 runs in the early innings and that just doesn't put them in a position to win. so going back to brad bergesen he was the one guy who from the very beginning of the season when he was called up at the end of april he consistently went deep into the game and the orioles really could use that from their starting pitchers right now. so of course the question is when will brad be back in the rotation. i asked him if he had an answer. >> i have no idea right now. it's tough, and that's the part that's been killing me, and made me so frustrated that my leg, it keeps kind of grabbing on me and kind of giving a feeling like it wants to give out. until that goes away, i won't be able to get up on a mound. then there's a whole throwing progression that i'll have to go through to get back in shape. >> i think that's kind of a day by day thing, they're going to see how i go, then we'll get a plan going. >> you've contributed, you've been one of the most consistent pitchers rookie or veteran on

the staff. how tough is it to sit there and see some of the starters struggling and know that you would love to be back in there and help? >> it's very, very tough. the last week i didn't go on the road trip, so i was watching out games in my apartment, it kills me to watch and not be able to go out there and compete and play. >> well, as i said, the orioles have missed brad bergesen. here's a look at how the rest of the staff has done since he's been out. there's been 11 starts made, the orioles starting pitching record is 2-9, the team e.r.a. as a staff is 6.66. the team has allowed 17 home runs, and opponents are batting .330 against orioles pitchers. now of course the orioles roster will expand september 1st, dave trembley has said they really are considering that six man rotation. hopefully brad bergesen will be able to rejoin the team and that will be the sixth man added to this rotation right now. >> thank you very much.

to give you an idea just how dedicated brad is, he had an appearance today at espnzone greeting fans and signing autographs, when it ended at 1:00 he came right to the ballpark to get the treatment done. he's working his way back. it's just a matter of time. tonight game two in this sear rear against oakland. kennedy, davis and hairston with jack cust dh'ing in the cleanup spot, suzuki will catch, everidge at first base. cliff pennington the shortstop will bat 9th. how about that mark ellis. >> you would think that a guy that hit that low in the order would never get that many hits, but last night he had his swing together and you saw how much trouble he gave the orioles. there's an at-bat right here, single up the middle. one run scores. later on in the fifth inning, another single to left field.

he scores two more. he ends up with four rbi's on the night, five consecutive hits. it's not the first time he's put consecutive hits back together again. after this five hit night he has looked back. he had a home run in his last at-bat coming in there so he had six consecutive hits. one other team he had seven consecutive hits. two hits in a row, he'll break his record. >> i'm a law of averages, his first at-bat, ground ball to izturis. take a look at the orioles line- up. roberts, jones and markakis, with huff at first base. reimold back to the number 5 spot, melvin mora at third. he's coming on. chad moeller and cesar izturis, but this today is all about nick markakis, doubled last night, but he's slowly beginning to get on one of those hot nick markakis streaks. >> well, he is in the middle of a hot nick markakis streak.

.323 since the all-star break, nine doubles, five home runs and 21 rbi's is hot for me. he didn't get that hit his first time up. he usually gets three or four when he does, but nick markakis is being what nick is, we, very consistent. when he is not swinging at the ball out of the strike zone, he is definitely one of the best hitters in all of baseball. if you leave it hanging up there for him. not what you'd call your basic home run hitter, but he will hurt you going the other way quite a few times. >> the orioles tonight looking to bounce back after dropping last night's opener 9-1. we'll look back at last night's outing and the performance by jeremy guthrie who lost his fourth consecutive start. ♪ @@00

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autographs. always a popular thing for the fans to do over at masn booth on utah street. on friday the 1989 why not orioles will be represented by some players. then on monday, mcgregor, boswell and valentine will be a part of the series. and there's brad bergesen outside the orioles dugout, it's his t-shirt night and he's signing the t-shirts for the fans as the orioles fans enjoying the number 5 t-shirt, the popular question today at the espnzone, we fooled the fans. what number did brad wear in his first start? and i held up the number 35 shirt, of course it was number 64. last night the orioles dropped the opener of the three game

series. let's look back at the game as the athletics really pounded the baseball. second inning, it's already 1-0 oakland. >> 12 singles on the night, oakland a's just wore the ball out up the middle of the plate. this one right in front of adam jones. >> now fifth inning as mark ellis continued his big game. last batter guthrie would see and it's a 5-0 game. >> this put oakland up 5-0 at this point in the game. >> the orioles are trying to make something happen, down 5- 0. first two batters get on, second and third and nobody out, then mother nature took over. it rained. and it rained some more. after the delay, after two outs, the runner still on, here is rhyme mold. >> come back here. the orioles had two opportunities before nolan reimold came up, line drive to center field was one of them. >> and then they did finally in

the bottom of the ninth as luke scott hit his first home run in a month. >> that was his 19th home run of the season. he finally broke the ice. it's been a long dry spell for luke. he's struggled to get that home run. >> so geogonzalez took the win, guthrie lost again. he has only one win since the all-star break. >> a tough game. made some pitches, but did not make other pitches. they strung together, the big thing was the two out hits, and knocked the runners in. you have to tip your cap to gonzalez, he proved tonight that unless i really shut them out, we didn't have much of a shot anyhow, but unfortunately i did not pitch well throughout. >> putting guys away when you get the two strikes, how tough is it not to be able to do that? >> i've always been the same

type of pitcher. i go after people. throw strikes. try to let them put it in play. unfortunately tonight those players did not put them in play, they fouled them off, ended up with a base hit. i've never been a huge strikeout guy. i'm not a guy that blows it by people and makes the perfect pitch and gets people out, i haven't been that guy. it's just a case of it's their fault, they didn't put it in play for me tonight which is unfortunate because they swung at a lot of pitches, swinging up, down, out, in. i don't know what else i could do. unfortunately i walked him, so i didn't make him put it in play in the final pitch. but i attack guys. it's always my goal. tonight it did not work well. the more hitters you face, the quicker that pitch count piles up on you and that's what it did to me tonight. >> so jeremy guthrie, there's the line, he goes 4 2/3, did

not allow a home run but five earned runs. ricky has lost four consecutive starts. we know he has outstanding stuff. what are you seeing as you watch him pitch? >> i have to disagree with him. i'm going to do that, because i think there is a little mechanical flaw and i think he can throw the ball by people. when he consistently shows the hitter where the ball's coming from, they get that much time to see it, it doesn't matter where the ball really is. yes, some were up in the zone which made them easier to hit, but i think what it is is when that left side is flying open and they get a shot at that ball all the way back from as far back as he reaches, they get a big look at the baseball all the way to home plate, it makes it very easy for any major league batter to put the head of the bat on the ball and last night it worked against him with all 11 hits that he gave up. some of them were just mechanical flaws. jeremy guthrie is an

outstanding pitcher. he certainly has showed us that in the past. this is some little bitty thing that not even he feels at this point. >> if you see a mechanical flaw and you recognized it, how does a pitcher go about correcting that? >> they have the pitching coach, they have the videotapes down there in the locker room to work with. it's something that he has to identify on his own. it's not something that he can feel, otherwise he would have made the adjustment, but it's just one of those suggestions of take a look at it and see where the ball's coming from and what view the hitter has of you. maybe he'll make some kind of adjustment where he hides the ball well. maybe he'll make that kind of an adjustment, be back on track in no time. >> tonight it's david hernandez on the mound for the orioles, and chad moeller will be behind the plate. 

 here in the bullpen pic area a short time ago, dave trembley from the state university of new york, about 65 of the alumni from dave's college are here today, so dave came out to meet them, sign autographs. the golden eagles, the proud alma mater of dave trembley. well, tonight chad moeller returns to the orioles, he'll make his first start since rejoining the team. he took the place of gregg zaun after zaun was traded on friday to tampa bay. amber talked about chad moeller after he was outright today triple-a when matt wieters got promoted. >> yeah, no. i definitely thought it was possible. i didn't know what the scenario would be. you just come to find that

you're not surprised by anything that happens in this game because there's too many random things that do happen, normally it's injury, but in this case it was trade. >> everybody knows that you're a guy that they see in the future as a manager or a coach at some point because of your knowledge of the game. you do have a chance while you're here to sort of mentor in a way a young catcher matt wieters. do you like that role? is that a role that you like to be in? >> well, it's one i haven't been in a whole lot. i continue to find myself a little bit on the older side of this game. >> i wasn't calling you old, i swear. >> right, right, sure. no, i've still got melvin here to help out with that one. yeah, absolutely i embrace it. if a team sees me for a certain reason, they see something that i can add, whatever it is, i'm grateful. i'm not going say there's no ego that's going to get in the way of this. this game's humbled me enough

times, i'm grateful to still be able to do it. if they're going to allow me to stay in it, great, i'm all for it. >> you seem to be laid back. kind of let him approach you kind of a guy. >> i'm going to bring things to him. i'm going to bring things up with him and my pernt's one that's laid back, i'm just going to point out there's not a right or wrong to this but here's what i found. if there is something that this is like a right or wrong, i'll point that out also. but he does a great job back there. it's just the little things that you find out over years. >> how much have you watched these young pitchers that you're going to catch now? i imagine you're studying a lot of video on them. >> dave's got a great arm. no question about his arm. command is always going to be the one question mark with him at this point and what i've seen, he's been good. i haven't followed how he's been here. i know what i saw when he was down. he's got a great arm, a good breaking ball and change-up. it's going to take time for all

these kids. nothing's going to be rapid. it's just going to come down to learning and understanding and realizing how good they actually are. >> so chad moeller back with the team. he sounds like a future coach to me, maybe even a manager. he'll be catching david hernandez, the rookie. for whatever reason, david has struggled early in games, first and second innings of games, then he begins to settle in. is this a young pitcher thing? >> well, i think it really has a lot to do with your mental approach to the game. you've got to have total confidence in yourself all the time. if you're going to be a successful major league pitcher, you have to believe in yourself from the moment you walk out on the field to go to warm up for the game. i think a lot of young pitchers fall into the same trap. they're not very confidence about what they're capable of doing. it takes him an inning or two before they get slapped around until they all of a sudden get a little bit mad at themselves,

then they come back strong, the confidence starts to build, regardless of what's happened the first two innings of the ballgame. hernandez is an unbelievable young pitch we are a good arm, he's got a great repertoire of pitches. >> david hernandez on the mound for the orioles, tonight he'll go against trevor cahill in the middle game of this three game series. hernandez looking to even up at 3-4. stale pretty good e.r.a. when we come back, rick dempsey's scouting reports. 

 orioles reach is busy t week. on friday you can meet brian bass at the wendy's in owings mills, maryland. for all the details, get to masn sports.com. earlier today, matt wieters and chris hoiles met with a group of kids at the sparks school in maryland, a clinic, they posed

for pictures, signed for autographs. tonight it is game two of the three game series, middle game, what's the scouting report on david hernandez? >> the first one is men on, men off. that sounds like a beef stew, but it has everything to do with how david hernandez pitches. kind of odd, when there's nobody on base, the league hits .331 against him. when he goes to the stretch, men on base, he pitches his e.r.a. is 1.7. are the batters only hit .170. i would just intentionally walk the first guy, then go ahead and get your double play and get out of the inning. >> i don't think rick would like that. >> no, if he is ugly early, and he is great late. the first two innings of the ballgame, the e.r.a. is 5 or worse, in the third inning on, it drops down to 3.4. that tells me he's very tough from the stretch. >> what have you got on cahill, the right-hander from oakland. >> he's another pitcher that

has trouble with the long ball. 25 home runs in 23 games so far. hopefully the orioles tonight have both barrels loaded waiting for mr. cahill. he has been in a june gloom so far. 1-6 with a 10.8 e.r.a. >> give me the rick dempsey keys to the game. >> just stand still for cahill. he has walked a major league baseball leading 13 first batters of the ballgame. he is not too good when he starts out in that first inning. >> i am still taking a pounding in the "o's xtra" challenge. who is your player to watch tonight? >> i'm going take cesar izturis. not because he's really hot. everybody i pick does well, jim, i'm giving you a chance to pick any guy you want in the line-up. i'm taking little cesar izturis tonight. i think he's going to have a big night for me. >> i can't remember the last time i won, so what i'm going do is last night you had nick markakis, who beat nolan reimold because he had a

double. i'm taking nick markakis. >> i would if i were you. >> this guy has hits in every game except for four sense the all-star break. i liked that double last night. markakis tonight has a big game. what the heck, you won with him, i can win with him. >> if my guy wins, you'll know i've got the voodoo. >> tonight it's the orioles and the athletics, as david hernandez tries to help the birds snap a three game losing streak. gary thorne and jim palmer are next. they'll have the play-by-play. matt wieters gets the night off. chad moeller will catch. it's brad bergesen t-shirt night, it is hot, it is humid and we have orioles baseball coming right up. 

 >> gary: it's the orioles o masn. we welcome you to camden yards as tonight the a's will take on the orioles.

o's will try and get out of that tonight. for the orioles last night, an ace on the mount. jeremy guthrie. it's been a struggle all season. for the orioles, not the kind of season they wanted for him, certainly for jeremy not the kind of season he had hoped for. last night dave trembley talked about the performance of jeremy guthrie. look at the e.r.a. at 5.43, the starts in his career. and certainly at times you would think he is certainly better than a .500 pitcher. last night dave trembley talked about it, the pitcher talked about it. dave trembley spoke about it again tonight. >> just didn't have the pitch to put people away. got his pitches up. >> i've been consistently inconsistent, so i wish it could change the story. i tried to switch up my routine. i didn't talk to you guys last time, thought maybe i'd have a good one. let it simmer inside for a couple of five days, not talk about it, see if that works out. so it's not for lack of trying.

>> i don't know who his replacement would be. he's a starting pitcher. >> gary: in the end, jim palmer, that is the answer. jeremy guthrie is the starting pitcher, so he will start. >> jim: the good news for him is they need to get him back to where, we saw that e.r.a., that's what you want. he's going to give them a chance to win. i talked to him, i said you've got to relax. i kind of invoke what mike flanagan use today say sometimes, because i know he's a type a personality, you've got to try easier. he has to make some mechanical changes, his head is jerking, i asked today, the guys that tell you how you're pitching are the guys that face you. and i said to the a's, what's it like hitting off guthrie. he said we know he's going to make mistakes. he made mistakes last night. they took advantage of it. >> gary: and how the o's finish

this season will in large part depend on how jeremy guthrie can respond to what has happened so far and make it a better ending. does your mouthwash work in six different ways? introducing listerine total care. everything you need to strengthen teeth, help prevent cavities, and kill germs. introducing 6 in 1 listerine total care. the most complete mouthwash.

 it will be a warm and h night once again here at camden yards with the temperature of 89 degrees at game time, overcast skies. a breeze that will be kind of circulating around the ballpark here tonight, as there are thunderstorms once again in the area. take a look at the starting line-up.   >> jim: let's take a look a

our scouting record for david hernandez. we'll end that two game losing skid. he did not pitch well in his last start in detroit. will use all the pitches. it still comes down to, okay, you get your best pitch is your fastball, get it over. then a mound adjustment. it used to be all the way the other side of the rubber. they have moved him to the third base side. so it looked to me that the last couple games he hardly pushes off. maybe that's why when he gets runners on, his numbers are better. so they've made an adjustment. they would hope he would carry it to the game. as we look at adam kennedy who will lead it off for the a's. >> this is a guy who gets on base, he's got a three game hit streak. kennedy can take the ball to any field. he's got power in the lead-off spot. and you see a .284 batting average with runners in scoring position and a .333 against the

o's. and we are under way. >> jim: playing a position. usually when you move from second base and play third, a position he'd never played until he got traded, picked up and started playing third for the athletics, it usually affects your hitting. that's not usually the case. he made some nice plays last night. if you can play, you can play, and he's found a home at third. >> gary: teams gave up on him. he has really turned them all back. that's probably part of the reason why kennedy is doing what he's doing. he's a big part of the angels when they were making their postseason runs and championship seasons. then all of a sudden adam kennedy wasn't part of it anymore and sort of disappeared off the radar for a little under a year. david hernandez with a one ball two strike count on him. kennedy a one for five last night. he goes down swinging.

>> jim: take a look at the defense behind david hernandez. reimold, jones, markakis, that's the outfield here at camden yards. mora, izturis, roberts, aubrey huff back after a night off at first base. how do you use all your pitches? you command your fastball, you get ahead. swings right over it. this is what he did, when we talk about david hernandez, against the angels. >> gary: that one right over davis. this is the speedster on this ball club who has a six game hit streak. continued it last night with a 1 for 4. showed bunt. that will be taken for a strike. for hernandez, he has worked against this oakland team only in relief, back in june. and this will be his first start against this ball club.

the 24-year-old out of sacramento, california, who comes into the ballgame with that 3-4 record. here at home he's 1-2. breaking ball and davis will foul that one back. rajai davis, more like a lead- off hitter, but he also can move the bat around well. so bob geren likes to keep him in the number two hole. the fastball taken up high. >> jim: he plays the game like he's about to miss the train. >> gary: doesn't he remind you of rickey henderson? >> jim: yes. >> gary: just the way he kind of moves. that one in the gap to left center field. now you're going to see the speed. jones getting over. reimold will cut it off.

you didn't want that. that will be a double and an error. and davis ends up at third base. he had that right in front of him all the way. error on reimold. >> jim: nolan reimold is going to circle the ball, because the minute it's hit to your left off the bat, you know it's a double. again, you don't want to make it into a triple. he just doesn't catch it. adam jones assumes he's going to catch it, so he overruns it. he was backing up the play. with one out, that's huge play. difference between being at second and third obviously. >> gary: so a double and an error. nolan reimold charged with just his fourth error of the season, but at a most inopportune time. now hairston with one away will take the breaking ball inside for a ball.

bob geren's team has scored 140 runs in the first or second inning. fouled back. they just haven't been able to maintain those leads since the all-star break they have, and are playing .500 baseball. but they jump on you early. >> jim: the one guy, geogonzalez, he's 3-0 since the all-star break, everybody else when it comes to their starters, is struggling a little bit. >> gary: that will be fouled back, a fastball he couldn't catch up to. >> jim: you get an idea why david hernandez's best pitch is his fastball. scott hairston just got a fastball in the middle of the plate and couldn't quite get to it. you need a strikeout. it's not like you're thinking strikeout until you get to this count. now all of a sudden runner at third, one out, infield back.

rather than melvin mora, i need a strikeout. >> gary: got the pop-up instead. will it be playable, no. about four rows back too far. >> jim: that was a really good breaking ball. he threw a couple of rolling breaking balls to rajai davis that he swung through. right there, that's your strikeout curveball. >> gary: this is a ball club that will take you deep into the counts. they fouled off all kinds of pitches in last night's ballgame against jeremy guthrie. they do not strike out a whole lot. runner at third base, one down. again, it's going to be fouled back. >> jim: you could see chad moeller, you could see him move and really split that outside corner. now, david hernandez missed by

about a foot with the target. but a veteran catcher, you're looking strikeout right here. watch him move. so if you don't hit your spot, it's your fault. he is presenting the target and saying, here, throw it here. >> gary: foul tipped and held onto for the strikeout. hairston goes down. two down. >> jim: take a look at how david hernandez, there's your four-seam fastball. that's going to have that extra life to it and hop on it. there's the slider. there's the change-up. so he's gotten a strikeout on a change-up. >> gary: now he faces cust, the cleanup batter who strikes out all kinds of times but also can deliver the long ball. he had a couple of singles, he scored a couple of runs, and

he's got a runner at third with two down. and this is where this ball club has scored a lot of runs this season. they are among the best when there's two down and runners in scoring position. hernandez a chance to get out of it. there's that home run cut. >> jim: you can see the shift right there. brian roberts kind of like a romer, the second baseman is playing short right field. >> gary: you have a long throw to first base on a ground ball. >> jim: you really do. you don't have a guy with a lot of speed. >> gary: cust will take it down the line in left field. foul territory, and will make the play. no runs, one hit, one error and

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is if you run into a friend and you want to share a photo one, with a flick, there's an app for that. if you want to share contact info with a bump, there's an app for that. or if you just want to share some down time, well, there's an app for that too, because there's an app for just about anything. only on the iphone.  >> gary: the orioles want t get this win streak the a's have over. let's take a look at the starting line-up for the o's. roberts, jones and markakis, huff, reimold and scott, mora, chad moeller and izturis. >> jim: look at our scouting report on the youngster, he's

only 21. sink or fail. he's a sinker baller. he's struggled, he's 1-6 over nine starts. lost three in a row. they don't get a lot of runs for him. two runs or less in 11 of his 23 starts. >> gary: the 11 losses have come in the latter part of this season. he had a great start at the beginning and it's all kind of slipped away and the e.r.a. has gone up. brian roberts had a 1 for 4 in the ballgame last night. the count will go to 2-0. that's been a real problem for cahill and the orioles know it, walks. 55 free passes in 126 innings. in the minor leagues he was a predominant strikeout pitcher. he's got 64 strikeouts to go along with the 55 walks. roberts is has got a base hit

into left field. so brian leads it off against cahill with a single. this has been a series dominated by the a's in every department. >> jim: again, they have scored nine runs in three of the four games. so you got to change it. you have to pitch better, david hernandez certainly gets them on the right track pitching out of trouble in the first. now you have a guy that's been on the ropes. he's lost three in a row. you need to get into the bullpen. that is 21-year-old kid what's already pitched more innings than he pitched in either of his two minor league years. >> gary: bunted foul going for the base hit. >> jim: this is a guy you need to beat, and you need to do it offensively. you need to make a statement

that what oakland was able to do last night against jeremy guthrie. they put 16 hits on the board. everybody joined the party. >> gary: ground ball to second base. the orioles killer, one, two. both last year and this year, the double play ground ball for the orioles has just been a killer. >> jim: good pitch right there. sink or fail. this is a sinker baller. doesn't strike a lot of guys out, so you have to do, whether you're a young or old pitcher, you have to do what you do best. for him it's a sinker. change-up, slider. but the sinker is going to get him into the middle innings if he's going get there tonight. >> gary: nick with a four game hit streak. he's continued his run of 31 consecutive games in which he

has reached base, an that is the longest active streak in the majors. and add another one to it. markakis has got a single. a five game hit streak and has now reached in 32 consecutive ballgames. there's the all-time mark. nick's reached 32 consecutive times. the major league record is 84 held by ted williams in 1949. in looking that up today, it's interesting, because one of the problems in keeping that mark is exactly what do you use for getting on base? hits and stuff are easy, but if a batter strikes out on a pitch and reaches because the strikeout ends up being a wild pitch, does that count as getting on base? major league baseball has said no. swung on and fouled off. so williams has the all-time

mark at 84. >> jim: that's a nice little string. >> gary: that's half a season right there. aubrey huff had the night off last night. orioles need his power bat to get back to work here for the orioles to get back offensively. the pitch will be taken outside for a ball. cahill, we said in the last six starts, has just struggled. even longer than that. he's gone 1-6 over his last 8 with an e.r.a. of 8.19. that goes all the way back to june 27th. we were talking about the fact he was 5-5 through had a date, and his e.r.a. was 3 and a half. >> jim: i think it goes back, last year, 124 innings, the year before 104. already 136. so if you look around major

league baseball, you will see, it's kind of a silver lining for brad bergesen. now getting hit with that line drive, he'll actually be well rested going into late august and september when he gets back on mound. but everybody says you don't want to have a pitcher throw more than 30 innings more than he did last year. he's almost on that number now. so i think it's kind of normal to feel like, again, you're pitching at a higher level, never pitched higher than double-a until this year against the best guys in the world. >> gary: no runs, two hits, no errors, one left on base. ?

 >> gary: carl washington of crofton, got a chance to win $99 worth of scratch-off tickets from the maryland lottery for every home run hit tonight. good luck, carl. >> jim: carl's night, come on down. >> gary: we do six of these shows a day. they run for 17 years. here's suzuki. that one's going to be fouled back. suzuki has a three game hit streak going as he comes in with a .283 batting average.

kurt's really having an outstanding year both at the plate and behind it. 94th game that he's caught. ground ball towards short. played by izturis. >> jim: you could learn a lot watching the a's hit last night if you were david hernandez, because they did get 16 hits. if you know kurt suzuki and you look at his numbers, that was his 404th at-bat. every time up he's swung at the first pitch. he has 18 walks. it's not that you don't throw him a strike, it just better be a good one. you take advantage of the hitter's anxiety or whatever you want to call it. >> gary: smoky burgess was great pinch-hitter who played for the pittsburgh pirates. a tremendous player in their championship seasons. i looked at him last night and said, that's smoky burgess. built just like him. >> jim: except he was left-

handed. i actually faced him when he was with the white sox at the end of his career. used to kind of sit back, nice and relaxed. i don't know if tommy everidge is relaxed. smoky was not a care in the world. but i'll get ready when you throw it. he could hit. >> gary: he was one of those who did rake. everidge 1 for 5 last night. >> jim: this game is so much of a game of relaxation. i know juan used to talk about facing ernie banks and he would kind of see those fingers just kind of being relaxed on the bat, he'd go, uh-oh, i'm in trouble. you saw cal do that, and the breathing, just all part of it. when you throw a ball or you go to hit it, if you're able to slow things down and be quiet and not be too anxious.

>> gary: swung on and missed. hernandez has got that pitch going. and there are three strikeouts for him on the board. two away. >> jim: take a look right here. perfect fastball up and away. he has moved completely across the pitching rubber which is 24 inches. watch him push off. he used to stand way over and not even use the pitching rubber. it goes about 6 to 8 inches down into the ground and it's there for you to use to push off. to get you to home plate. >> gary: hernandez throwing lots of strikes early on. we talked about this team and the hits they had last night. all nine starters had at least one hit. had everybody in the line-up

deliver at least one hit. that's one of the reasons why they've done so well against the orioles over that timespan. they really feasted on orioles pitching. hernandez trying to end that right here. that's left center field, not deep. reimold wants it and he's got it.  i've never been all that great with my money. probably because i've never had much. but now that i'm making more, it's time to be a little smarter about how i manage it.. with the calendar, i can schedule all my payments. and when funds are low, danger days help me stay out of the red. i can also transfer money with just a click and a drag. so maybe i'm better with money than i thought. introducing the virtual wallet from pnc, a high-definition, online view of your money. pnc. leading the way.

 >> we have an update on koj

your hare ra. we know that he was told he needs oh go down to sarasota. he's been rehabing. koji is expected to go down to florida, then sometime in september he'll be activated, he'll pitch out of the bullpen and dave trembley said that andy told koji it depends on what the team's needs are and also where he's at physically in the off-season before determining where he will pitch next year. >> gary: and there's a lead-off base hit by nolan reimold. he is on with a single. koji will get back when the rosters are expanded, spent a day at the ballpark yesterday with his son. and the members of the japanese press were on hand recording it to send back home. now koji will take the clan down south. >> jim: he's got the right number on. >> gary: pretty good arm.

and he uses the rubber. >> jim: kind of a difficult year in some sense for koji. >> gary: here's the throw and it is not in time. >> jim: that is a pitch out. bob geren, the manager of the a's, they pitch out but suzuki does not make a good throw. if he makes a good throw, they're probably going to get him. watch him jump out of there. right there just gets under it a little bit. just enough. down around the ankles. probably would have had him. big guy that runs real well. >> gary: seven out of eight stolen bases. suzuki throws out 26% but they have run opposing teams on trevor cahill. that's the 14th stolen base in 22 chances against cahill. scott takes it for a strike. luke last night broke the drought. >> jim: he had been 9-0 at the

time. launch it had to deep left center field. there are the numbers. i told him you should have made the all-star team. you didn't need those three games off. he said you look forward to those three days. for him, all the impetus of what he was able to do the first half kind of went down the drain. >> gary: when you're not going good, you love days off. if you are, you want to get right back out on the field. scott will foul it away. the orioles with the home run he picked up now have one home run in the last 47 innings. the o's have really struggled to find the long ball. dave trembley said today before the game, our line-up should be scoring more runs. we've got too many people in here who should be hitting who aren't. we need to get that turned around. he said we just hope the veterans who have the numbers

in their careers will find them again in the final month and a half. fouled off. it will stay at a ball and two strikes. >> jim: you'd like to have them find it by not necessarily hitting home runs. the orioles have done a good job of hitting doubles and that usually translates into eventually you're going to hit some home runs. they're still one game over .500 on the road. >> gary: out in front of that. everidge over and will have no play. >> jim: cahill has shown us, good change-up, did throw the knuckle curveball even though he was minor league pitcher of the year the last two years. >> gary: he has been prone to give up the long ball. he's had at least one home run that he's surrendered in each of the last nine games. a total of 15 homers off cahill

in the last nine. reimold off second. and another one off the fist, fouled the other way. part of this all rookie rotation. 21-year-old on the mound here for this one. they're putting together, the ball club not just for next year, but for the next three or four years and doing it this time with the people they've got in that starting rotation. a chopper to the shortstop. pennington lifts it over in time. reimold moved up. take a long time and look, you'll see about youth movements. for both the a's on the left and the o's on the right. a's have had more starting

pitchers rookies, third for the o's. rookie starts. 186 rookies for the orioles and 141 for the a's. that's a lot of games and a lot of pitchers. >> jim: you can probably hide your position players but the 79 and 61 when it comes to starts, it's hard to hide your starting pitching. the teams that had the least amount of innings from their starting pitchers number one are the orioles and then right behind them are oakland. so it affects your bullpen. they're third in the american league in earned run average. if you don't go deep enough, sooner or later it's going to get you. >> gary: this is where the orioles have struggled mightily. they were 0 for 12 with runners in scoring position last night. the infield is drawn in.

mora gets the benefit of an infield that will try and cut that run off at the plate with reimold who got the lead-off single over there at third. >> jim: of course what you try to do here with less than two outs, get a ball up in the strike zone, you could hit in the air. and cahill is just trying to get him to hate ground ball at one of his guys. now try to strike him out. melvin, a good night last night at least with the bat. >> gary: the extra-base hits have just disappeared for melvin mora. we talked about slugging percentages down for both he and aubrey huff. that fastball will be taken away. and a one ball two strike count on mora. melvin just under the .300 mark now with runners in scoring

position at .295. in the dirt. a 2-2 count. the orioles working cahill early here in this ballgame, throwing a lot of pitches. he's given up 25 home runs, second only to guthrie in that department. >> jim: 19 of them against left- handed pitching. or left-handed hitters. >> gary: 19 of them have come at home. and only six of them surrendered on the road in smaller yards. >> jim: he must have played in the day. that's when the ball really carries in oakland, with all that foul territory. >> gary: suzuki taking a look at third as he blocked that one

again. suzuki dances behind the plate. he's got very quick feet. very agile. he has no problem moving around. as a result, he'll whip throws to third and first at times behind base runners if you take your eye off him. fouled off again. another tough at-bat here. we'll see whether or not reimold will be running on contact with that infield in. probably not. he'll wait for it to go through with one away. they're going to have to go to the bag. that is fair ball. and it's going to be an rbi for

melvin mora even though he never even got, not only down the line, he never got back into the batter's box. >> jim: i think the first baseman, he's a rookie, he freezes. he thinks he's hit, right there. that's right off the handle of the bat. look at melvin. nolan reimold is a very good base runner. here you go. off the end of the bat. nice rbi. you're about a half-inch from breaking your hand possibly and you get an rbi. >> gary: 30th rbi for mora and a 1-0 lead for the orioles. reimold took off. chad moeller gets his first start since being recalled. breaking ball is going to be

taken outside. gregg zahn being moved to tampa bay, chad moeller came up on friday. he hit .203 with the tides. now chad getting a start in the ballgame today. as wieters will be working about six games a week, and moeller will get that extra one on no particular day. chased one away. 

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 >> gary: he's looking at th hot dogs. that's the reaction from the young man watching the hot dogs. >> jim: just the way i like them cooked. >> gary: make sure they're cooked thoroughly. now get me a few. here's mark ellis. 5 for 5 in the ballgame last night. he has a three game hit streak going. as ellis reached a new career high. has raised his average up to .270. also had a season high four

rbi's last night. >> jim: the 19th of july he was hitting .205, now he's hitting .270. >> gary: he's got it going. >> jim: i told him he looked a little tired. got on base so often last night, it will tire you out. he quoted in the paper as saying, i don't know if i've ever had five hits. you were talking about it. >> gary: making a comeback in a season that he's missed some games in, so really getting himself into his best playing shape right now. >> jim: look at those numbers. >> gary: this a's team, their overall season numbers are a bit distracting offensively. 13th in average and 11th in runs. they're also a little misleading, because since the all-star break this team's

hitting .284. that's the fourth best average in the american league since the all-star game, and in that time frame they lead the majors in doubles and stolen bases. and they are second in runs and extra-base hits. so this is a very different oakland team after the all-star break offensively than what they were before. fouled back again by ellis. david hernandez, no walks, three strikeouts so far. looking for his fourth win. that one in the air to left field. reimold going back and he's got it. ellis is retired. on friday we hope you'll bring family and friends out to the yard here at orioles park. every friday is also student night presented by at&t. all students with the proper id

get the left field upper reserve seats. angels are coming to town for the weekend series. >> the booming bats of the angels. >> here is cliff pennington. 1 for 5 last night. jokingly said, i was kidding last night, with a regal name such as yours, you ought to have a 1 or 2 or 3 behind it. so it will be cliff pennington the second or third. he said i am. he is cliff pennington the second. he said i'm a junior to my dad. >> jim: and the middle name is randolph. dad taught him to switch hit when he was about 7 or 8. nice to have that breaking ball coming towards you. >> gary: makes life a little

easier. pennington in the number nine spot hitting .275. nick markakis has got it. >> jim: he's only 1 for 14 hitting right-handed. so now 10 for 27 hitting left- handed. >> gary: so two down. double by davis, came with one away in the first inning. seven in a row have been retired since by hernandez. top of the order, kennedy a strikeout victim his first time up. bunting for a base hit. it will turn foul. and he'll come back with the one strike count. >> jim: that's what adam kennedy, we talked about the stolen bases and if you pitch him away, hits the ball that way, yet if you hang a breaking ball, becomes a home run

hitter. the last 20 games you're scoring over six runs a game. they have not had a winning record until the month of august. so that run different recognition, that's why they're winning. >> that ball in the air is going to find a little room and it falls in. kennedy has got a base hit. extends his hit streak to four games. it comes with two down in the third inning. their lead-off batter is on foraga davis. the a's are 6-4 in the month of august. the orioles have not had a winning month this season. davis will take the slider for a strike.

rajai davis with a double his first time up. >> jim: kennedy doesn't have great speed, but he has the ability to steal bases because he's a little like brian roberts to get that running lead. so you need to make him stop. he'll just creep into a running start and all of a sudden he becomes a base stealer. >> gary: check swing, strike on the outside corner again. >> gary: the a's have stolen a base each of their last 7 games. 13 stolen bases in those seven. there's the lead. runner goes. davis up the middle, right where roberts is standing. he'll make the play at first base and get the out. 

 >> gary: he had the rbi. >> jim: knobs it down the first- base line and everybody is in shock and awe. >> jim: none more so than melvin. >> jim: you made a great point.

about that reimold does run. he could have frozen and he could have assumed that was off his hand or whatever. there's your only run of the ballgame. >> gary: 1-0 lead against trevor cahill. izturis first at-bat, four game hit streak. ellis has got it. izturis is retired. pennington, the shortstop, played with reimold minor league ball, talking with him today about that. he said i told me teammates before this series started this guy can run. in the infield, i said you've got to cheat a little bit on reimold and the outfielders need to be aware if there's any chance for him to move up, he will. >> jim: and it really does put a lot of pressure on everybody. everybody knows when you know somebody's going to run balls

out, and they're letting you play 90 feet, run. but he does it. we pointed out because it's so unusual sometimes. just flat out sprint down there. you're in shape. you're an athlete, supposed to be, run. >> gary: is that asking too much? >> jim: no, he does, and we're like all shocked by that. >> gary: roberts with a single, being chased by his teammate nick markakis for that lead in two baggers as nick is now tied for second with billy butler and lind. off speed pitch will miss up high. >> jim: i'm going to have to ask nolan tomorrow, was there one definitive guy that told you that's what you have to do? i saw collins actually take

garrett anderson out of a game when he didn't run a ball out. garrett will tell you, i learned a major lesson early in my career. >> gary: that one in the air, sweeney going back, sweeney's not going to get it. brian roberts saw how close markakis was getting, decides i better get another one. >> jim: they play him a couple of steps to left. just a sinker down and in. he lofts it. it's in the air a long time. not a lot of urgency to get to third base. puts it on cruise control. it will be a little more difficult for adam jones to hit him in. >> gary: bear in mind, brian is

the leading base steeler of -- if you give him a chance, he will take off. 11 for 11 stealing third. cahill realizing that turns around. >> jim: you could get a bigger lead. you get guys out there that can really steal bases, you almost start flinching. because, yes, your middle infielders have to keep them close, but if they do, they're out of position. >> gary: there he goes. no throw. 12 for 12 stealing third. >> jim: i guess that's why he didn't feel imperative to get to third. 22 stolen bases. only been caught six times. and he's looking right at him. brian gets a bigger lead. great instincts right there to get to third. >> gary: changes everything for adam jones as he gets a lot more room with the infield

drawn in. >> gary: they're going come to the plate. jones will try oh get to second. so the drawn in infield works, the decision to send on contact, the strong arm of pennington and an out at the plate. >> jim: when the ball's hit that sharply, watch the ball, he's going to get here before he goes. he's got to stop right about here. when he sees it, put the brakes on, he tries to. he's nursing that sore shin. pennington with a rifle arm. no possible chance. then right here, adam's thinking do i have a chance if there's going to be a run down? there wasn't one. >> gary: so a great scoring chance, runner at third, nobody

out, cut down at plate. now jones on at first. two down. nick markakis will take the pitch. he has a single. a five-game hit streak. cahill, clans to get out of the inning. nick has really struggled against the a's over the last two years. in the nine games these teams have played in two years, his average is .200. >> jim: he showed you that e.r.a. this year. at least the team e.r.a., there are the numbers that you talked about against this year. the team e.r.a. is .186. last year they were fourth in the american league in

pitching. >> gary: fouled off into the glove, or maybe missed, i guess. didn't tip it. plate umpire says it went right through. >> jim: pitchers have a book on everybody. but the good teams, the ones that can pitch, the good staffs, they can execute. and oakland this year, of course their starters a little bit different. the bullpen very, very good. >> gary: jones at first. we talk about these oakland numbers against the o's. it's kind of hard to believe that since 1999 this oakland team's got the best winning percentage against the orioles of any american league team. 64 and 27. and a little chopper up the middle. will it go through? yes, it will. jones on his way to third. the ball literally had stopped rolling, but muscled into center, markakis 2 for 2. >> jim: the high fastball.

the path of the bat to the ball. that's what the orioles hitting instructor talks about. and nick markakis does it about as well as everybody. that's why he got a little bit more upright. he said it just gives me more leverage. he leveraged that one into center. >> gary: cahill, orioles have a run off five hits off him. and are a 1-0 lead. there are two down here with aubrey huff. coming to the plate. the outfield of the orioles, take a look at the rbi numbers put up by outfields. anything in common there? how about the fact they lead their divisions. st. louis cardinals another one. then the orioles, followed by the yankees. so the outfield's right up there with the best outfields in

baseball. aubrey huff looking for the big hit that dave trembley said has just eluded us. that will miss outside. a strikeout victim his first time up. >> jim: an important 50 games for aubrey huff and the orioles. balls if he hits, they win. last year nobody had more extra- base hits in baseball than aubrey. 82 of them. >> gary: and a ground ball to second base. ellis up, and cahill gets the out.