system? and in doing that, a lot of times it's -- having a business mind. even if it's a nonprofit, a successful nonprofit, a sustainable nonprofit is a business. everything needs to be a business. and if you're going to assume you don't have to think about those nitty-gritty details to make your ideas sustainable then it's going to fall apart and what delayed i know our project when we first started in school it wasn't a business. it was a q & a amongst four girls and not until i sat down and said we need to make a sustainable idea and how we're going to live and how we're going to pay people and how we're going to do the r & d that we know we want to do did we really start to make great strides in terms of, you know, our actual mission. so the on this thing i can say, you know, if you're working with a team you're working with a group you definitely want the idea person but you want the person who can sit down and sit through actually what's happening and what needs to happen to get you from a to b. >> vickrum and natasha? >> i think a big part of it is that you need to understand that

social change -- you don't wake up overnight and think i'm going to change the world. just like you said you want to or you make it other than a class project. you have to realize -- dream big for sure. i'm sorry that i didn't say you can't save the world and that's not going to happen overnight. social change does not come overnight but it does come incrementally and it comes by even having good dialogs like this today and i know it sounds cheesy but that's the first step people can realize because when you get those first jobs i can only speak only about washington-oriented jobs you may have graduated from the best universities or been the top of your class or feel that you really have a high aptitude and high grasp of issues but when you get there and if you're doing some remedial work you might feel downtrodden and why am i not talking to the press right now about why we need to have cap-and-trade legislation. realize the change will come incrementally both for the

issues and they will come incrementally for your careers but they will come. i think that's not to be a deterrent but you're going to hit walls along the way like she said but if you know this is what you want to pursue and even if you don't and you're willing take the leap in that moment hit the walls running as fast as you possibly can because you're going to learn from them. and if you talk, you know, work on those networks that she talked about then you'll learn from other things that people talked about and the final about mistakes that could be made is that i did mention hustling. it's my favorite word. i hope it trends on twitter. when she says really harness those relationships because sometimes you can be out there meeting people and it can feel to transactional and say hey it's really nice meeting you. it's also cultivating that relationship and growing it and

wanting to strike a genuine relationship and that mentorship model is also something that doesn't come overnight but if incrementally fed and nudged long can really blossom into something amazing. >> i just want to add two quick things. mistakes to me are good. if you're not making mistakes you're not learning anything. if you're flying through and you're trying to, you know, reach your social change ultimate career and you haven't made one mistake there is something going on, you know, if i'm farming and all my crops are perfect every year and everything's coming up beautiful i'm like digging around someone accidentally sprayed some herbicide around. what's going on. there needs to be some mistake and that's number 2 and the risk of sounding like a broken record it's really again listening to the community. i think one big thing -- it's still happening today and even in the breakout session that i was in this morning i kind of

was hoping someone would bring it up but it wasn't brought up is being careful that you're not inserting yourself into a movement into a movement and community and speaking to that community without speaking to that community. [applause] >> that happens so much. and i started -- when i got my whole, you know, crutch food movement on and i went to detroit to farm there and brooklyn. i wasn't raised in the detroit and i was raised in the suburbs of florida and i was talking all this stuff i was learning in food desert and i didn't live in a food desert with these people. it was my humbling moment where you have to take a step back. i've heard this before. when you're working in social change, you know, you really want to be working yourself out of a job because you want to be empowering the community that you're speaking for and speaking about and these problems that you're working towards and hope that the people of that community then take your place and find their own solutions so -- >> that's great.

[applause] >> can i just add one thing. >> yeah, yeah, yeah. >> i think along the way there might even be some in the room and this is a highly educated job and you might not end up taking a scombrob that you really love and passionate about that fall outside of the parameter of this bubble that we're calling social change but don't feel like if you pursue that career that like this room of people and the people that you once associated with are no longer your family or you can no longer connect with them. like it is really incumbent upon all of since we do have all these resources and we can build faster than any way possible and farm in new ways and we can communicate in new ways that you challenge yourself to leverage any resource around you to still hit on those passionate issues. so if you end up becoming a lawyer or if you end up becoming an investment banker take a moment every now and then to think about and reflect about those issues that you once cared for and never let them die because you have the resources to help on the side and the people in this room that

continue on into those careers that we call social change will never shut the door on you. >> i think that was a perfect way to wrap up. i'm going to ask you one last question but the reason i must have i love that it ended in some ways where we started what are we talking about when we say social change and social change careers because so many people have varying definitions on that and i don't want any of us to limit how you all define social change. many of us up here will have different definitions of that but i think it's really interesting for folks to be able to understand how you define the issues that matter to you and how you choose to work on those using your gifts, your talent, your resources, your net worth is completely up to you and the sky's the limit so i would ask each of you for a closing remark just to tell one final piece of advice to this audience. if there was one thing you could tell them and you only had that one thing as they embark on careers and social change? >> wow! can i get a quick show -- how many of you know specifically how you want to change the

world. that's what i thought. yeah. >> really. >> i surprised you too. that's great. >> yeah. >> what i can say is that -- you know, before i came into this, i was -- i'm trained in psychology and economics and i did a lot of stuff understanding the millennial generation and let's define it and understand who we are and what we can do. and what people say is that, you know, we're really keen about leaving a legacy. we want to do something big and we believe we can because our parents told us that we're, you know, the best of the best, whether or not it was true. for a while i thought i was a better singer than whitney houston. that's not true. [laughter] >> so what i can say for me is that, you know, if you were to ask me four years ago, do you know you're going to be a, you know, an inventor and a social entrepreneur and someone who like, you know, goes to these communities and finds out how you can introduce these balls. no i would have been like what are you talking about? even now what is this ball? what does it do? the fact it's what's happening now, i would have never guessed it four years ago.

i never would have thought of it until i was put, you know, between a rock and a hard place and i had all these experiences traveling, you know, being first generation nigerian american and seeing exactly where the need was so all i can say is don't be afraid -- don't be afraid to go into the unknown as long as you have a very good idea of who you are and what you want to do. i knew i wanted to do something. i didn't mean how or what but the how and what will come as long as you stay on that path that you're going to make something happen and you take every single opportunity you know what? i'm not an engineer. i suck at soccer. whatever, let's see what happens. and you'll see what happens. i promise you it's going to be worthwhile. >> yeah, and i think that's a really difficult thing to sometimes express. like you mentioned in the beginning or just -- sometimes we don't want to disappoint our parents. but i think social change -- you can really define it by on your own terms. but just don't end up

disappointing yourselves. and i think you can recalibrate what social change means if you don't end up entering the career path or you're traveling the career path that you're thinking about doing right now, you don't have to see yourself or define yourself as a sellout, right? social change is really just a moment and understanding for you to go to sleep at night thinking like i made just as much of an impact somewhere in the world, right? that impact is going to constantly evolve and constantly be redefined. i work in democratic politics and i've already seen how i felt about views when i attended that conference when i was younger change from where they are now. so my idea of social change are going to vary a little bit based on some of those experiences i've had had like she said know there are going to be moments where you're not necessarily certain what path you want to travel down but know that you're the one who get to define how you're going to pursue those things on your own terms. really remember that. i know this again i don't want to keep saying it sounds cheesy

but if you keep that in mind then you can be the change you want yourself to be. >> i think there's so many people -- i saw three hands set of people who knew what they wanted to do to change the world and that's completely normal to not know that yet. but i think it's a personal journey. so here i am talking about community and now i'm flipping the scrip and talking about individual. that's where it starts. you have to really like jessica said, know yourself, dig down. what was your childhood? what's your history? who are your ancestors, where did you come from. what was going back in the day where you come from and really dig through who you are and what kind of calls to you and everything else will fall in line. i really believe that so -- >> thanks, guys. i was so excited when i saw the panel lineup and honored that campus progress asked me and all of us and the key take-away is we're still on this path and journey. this is not a panel of people in their 40s and 50s who have made

a lot of money doing anything or who have been in this field for a long time. this is a panel of young people who are still trying to figure it out. who are still trying to live our values and figure out how to do that in a way that is authentic and true to who we are and as all of you do that, know we're here to support you and partner with you and i hope you enjoyed it and i want to thank my panelists. >> thank you. [applause] >> health and human services secretary kathleen sebelius also spoke at this campus conference and she talks about implementing the affordable care act. this is 15 minutes. applause masse is -- [applause] >> hello, secretary sebelius. >> hi, everybody. how are you? [applause] >> first of all, we just want to

thank you so much for taking time out of your busy schedule to be here with us today. we know that you have an incredibly busy job. and so we're just thankful that you're taking time to talk with us today. i guess we really want to thank you for not only being there to push and pass health care reform but implementing health care reform as well. i know thinking about our generation, we definitely benefit from two major provisions of the affordable care act. one is the dependent coverage where i know my parents are excited that i can stay on their plans. i'm 26. and also making sure that college plans come under the consumer protections under the affordable care act so we are so excited to have you here today. >> absolutely. so during this little quick break that we're about to embark upon we'd like talk about young people and health care because i think as a lot of people in this

room just because you're young you don't care about your health and you don't get stick. president clinton highlighted some of the ways that health care is working for americans. however, not all of america wants it to. and so that leads us into our first question for you, which is with a divided congress, how can hhs use its own authority to improve americans health? >> well, the great news is that the affordable care act is the law of the land. and so we are implementing the law of the land. and letting people take advantage of the benefits. as was already said one of the provisions that hit this year is allowing young adults to stay on their parents' plan up to the annual of 26, a really big deal. i'm a mom of 20 somethings. our older son went to law school. didn't have health care with that transition in a college. our younger son -- well, we're not quite sure what he was doing

but he didn't come with health care either. [laughter] >> but, you know, that's changed and that's really good news and we know about 600,000 young adults are already enrolled on their parents' plan. probably up to a million and a half people can do that. so a step at a time we're putting the provisions in place. and i think that's really good news for a lot of americans who now can take advantage of the plan. parents with kids with preexisting health conditions no longer have to worry about the fact that their children will be blocked out of their insurance blocked and that took. and i know that's a big change. but until they would be able championship is never to repeal the bill and have the president, president obama sign that repeal, this is the law of the land so we're going to implement the law and make sure everybody has an opportunity to have health care in this country.

>> and i know we're all excited about that. [laughter] >> i guess just looking at the theme of this conference being making truth power, what can we as young people do to educate our peers about the affordable care act? >> well, i think there's a lot that you all can do. first of all, i think the strategy that worked really well in the 2008 election cycle is exactly what we need. people learning the facts and then really doing a door to door household to household community to community education plan. great website healthcare.gov. it gives facts and figures and gives a timeline for the implementation, tells you what's available and what's coming and it has a whole lot of information about the insurance market that people never had before. so it gives very good facts and figures.

you all are capable and i know worthy to be terrific health ambassadors, promoting what's real and really pushing back hard on the lives and mistruths. a couple million dollars has been spent during the course of the debate telling people that were never going to be in the law in the first place. trying to scare seniors and small business owners so i think the more that you know about the law and the more you tell people, that's just not true. you know, there really aren't death panels in the law. there are improvements for medicare. there are improvements for young people. you know, this is what will happen and what won't happen. that's really, really helpful on a one-on-one basis to just be health ambassadors. >> i think that's so, i guess, pertinent that you say that because that's definitely something earlier in his speech president clinton really highlighted was sharing the truth that you know with the people that you know so that people have the right

information you love that you both highlight the same point. i think it really speaks a lot. and kind of, i guess, to follow up on arturo's question. being those health care ambassadors, what is at stake for young people if we don't become involved in the health care debate and we don't become those health care ambassadors? >> well, i think one of the major laws that passed 46 years ago, long before you all were born, was medicare and medicaid which put a framework together for the poorest americans and for seniors in this country that said, you know, you have a guaranteed right to health care. you make it to 65 in this country and you shouldn't go bankrupt. you shouldn't lose your house. you shouldn't lose your kids' assets because of a health incident. the point that medicare was passed, about 70% of adults nod health insurance as they went into their senior year. so you are now on the brink of that same promise made to the rest of the country. that's what the affordable care

act says is everyone in this country should have the assurance that you have affordable, available health care. that you shouldn't lose your house. that you shouldn't go bankrupt and it shouldn't depend on what state you live in and what floor you work for or whether you're a male or a female. i mean, right now women are more likely to be uninsured and underinsured, less likely to have all of the services covered. so if you're in this audience and you're a young woman you have more in stake in this bill than, frankly, the guys who are sitting at the table with you because you're more likely to pay more and get less out of the current market. so we're on the verge of that promise being delivered to the entire country. and i hope you'll join this battle because it's about you and your future and about your kids' future to turn this corner once and for all in america and make sure that every single person has the right, has the opportunity to have affordable,

available health care now and into the future. that's a really big deal. yes, you need to applaud for that and then you need to go out and work it up. >> bring it up, the sass. >> you bet. >> you really highlighted a point that a lot of people don't think about how this really is delivering on a promise for everyone. and you talked about how women can benefit a lot from this bill. and just thinking about our generation regardless of the political affiliation that a person may -- a young person may be swayed to, we all have this passion of equality to all, what are some of the steps that the administration is taking to ensure that all americans have access to care that they need regardless of race, gender and sexual orientation? >> well, it's a great question. i talked a little bit about women but a final piece of that

snapshot. in the insurance market women are likely to pay 15 to 20% more for identical coverage. plans are less likely to have birth control coverage than they are to have viagra coverage. it makes not a lot of sense. >> oh, my god. [laughter] >> they are likely not to have maternity coverage at all. so that women pay out of pocket a lot more and insurance companies right now by law can exclude women from policies or can exclude services for women. that will change with the affordable care act. that will no longer be the law of the land. [applause] >> and that's a big -- >> i'm going to clap for that one. [applause] >> same thing happens with the lgbt community. that we know that a lot of the health needs are not being met. we're not even collecting accurate health data for needs that folks have in the lgbt

community so we have done a lot at the front line of one of the agencies dealing with this issue. we started with a lot of administrative changes. so changing the laws for hospital visitation. it's no longer okay for hospitals to pick and choose who get to come in to a person's room at the end of their life or when they're in a health emergency. the patient gets to designate who their family is and who their loved ones are. if you want to get paid by medicare, that rule has changed. [applause] >> very big deal. we've changed, we've listed the hiv/aids travel ban. it used to be up until six months ago, if you were confirmed with hiv/aids you could not travel into the united states. you didn't get a legal visa in order to travel. that's now gone. we now have lifted the travel ban and lifted the stigma with it. we're now moving into an era

where we have a lot of new domestic strategies on dealing with folks with hiv/aids but also testing protocol and outreach protocol. we're at the forefront of dealing with the antibullying initiative throughout our schoolwork and behavioral health services and really moving to the point where we're not only going to start collecting important health data but that will allow us to do a lot more research for the lbj community, a really big step forward so not only does the affordable care act create a marketplace, create medicaid coverage for a lot of folks who couldn't get it, but also make sure that there is affordable health coverage for aids and hiv positive patients because here's the deal, insurance companies right now in the current market can pick and choose who get coverage and who doesn't. if you have a preexisting health

condition of any kind, you can be legally locked out of the insurance market for the rest of your life. that is coming to an end and that is a huge step forward for all of america. [applause] >> and then this, i guess, is on a more personal note i think for a lot of us it's easy to forget that you aside from being a cabinet secretary are also a real person who goes to work every day and has those kind of experiences and so, i guess, this question kind of touches on that. what for you has been the biggest joy of being so instrumental in the passage of such a historic health reform but then on the flip side of that what has been the biggest headache and struggle of working to constantly defend the reforms that you're working on? >> well, i have, in terms of the biggest joy, i mean, first of all it is just a thrill to be in this cabinet. i am a huge fan of our

presidents and i have to pinch myself on a regular basis sometimes when i look around the room and think, you know, i'm not seeing a photograph. this is me. i'm in this room. and have a little out of body conversations with myself. [laughter] >> but on a personal note my dad was in the united states congress in 1965. he sat on the energy and commerce committee. he helped to write the medicare legislation. he voted for the medicare legislation. he's now 90 years old and i'm here in this place administering medicare but also part of the next big generation so that was a huge thrill to kind of come full circle and i can tell you he's pretty happy that he passed medicare in the '60 and i think we'll all be very happy about this. so to be part of this historic moment is incredibly special. you know, the biggest, i think, pain about it is to continue a

debate a lot of times about issues that just aren't real. and to continue to have to push back on what are intentional lies and must truths. that was frustrating during the course of the debate and it's still frustrating but i remind myself, you know, a lot of people have a lot at stake and some people are doing just fine and frankly making a lot of money off the current system. their families are okay. their loved ones are okay. they don't have to worry about this. and they risk a lot of financial changes with a new marketplace where 80 cents of every health dollar has to be spent on health-related costs. where if we're really successful in keeping people healthy in the first place, we won't be spending as much on acute care. we won't have as many sick people and everybody will have access to the same coverage. so pushing back on some of that day in and day out is a kind of

pain in the neck. but when i travel around the country, when i talk to moms and dads who say, i never thought i'd be able to have the peace of mind that my child who was born with a heart defect would have get coverage in his lifetime, i have a daughter who now has health insurance, i'm a small business owner and i now can provide coverage for my employees, and i keep the best people in my shop, that's a really good feeling. and that's really what this is all about. one person at a time, we're going to make the change. [applause] >> well, secretary sebelius, we all thank you so much for all the work that you do. it's been great talking with you. >> i mean, just thank you for your time not only here but the time you spent working on it and as a daughter who now has health insurance, just a big resounding thank you from our generation and the two of us. >> let's give her a hand. [applause]

>> one final request, we really need you. we need your voices. we need your energy. we need your effort to make sure that this moment is not lost. part of the moment is to make sure we have a president in 2012 and beyond who is committed to this plan. part of it is to push back on the mistruths so we have a congress who wants to continue to move ahead. this is an important moment. when social security was passed, it was five years between the time that the taxes began being collected and the time the benefits went into place. there were numerous bills that went through congress all the way to president, were vetoed to the president to repeal social security. there were a bunch of court challenges that made their way through courts to declare it unconstitutional. but once the benefits were fully realized by the american people, that debate was over forever. so that's the moment we're in

right now. and we need your help to make sure we never go back again. we only go forward. thank you very much. [applause]

>> the senate banking committee looked at the nominations of three financial regulators including the president's choices to head the federal deposit insurance corporation and to be the next comptroller of the currency. the committee also considered a nominee for the financial stability oversight council which the dodd-frank financial regulations law created to identify and respond to threats in the u.s. financial system. south dakota democrat tim johnson chairs this 90-minute hearing.

>> good morning. i'll call this hearing to order. thanks to all of our nominees for doing this here today. i also want to extend a warm welcome to our witnesses' families and friends who are here with us. today, we consider three nominees that will play a key role in the continued safety and soundness of our financial system as well as protecting consumers. we need strong leadership at all our financial regulatories and i'm glad that the president has sent -- has three well qualified individuals to fill openings at the federal deposit insurance corporation, the office of the comptroller of the currency and on the financial stability oversight council. especially at this point of their economic recovery these are extremely important positions to be filled. .. reports expose

these practices bus services and banks from excessive fees for foreclosures, highlight the importance of continued oversight and regulation of the housing sector. the fdic and the occ also help

to ensure that consumers and small businesses continue to have access to credit from maintaining consumer access to a stable mortgage market to protecting small businesses access to capital, help create jobs and promoting small community banks's ability to provide credit to consumers in areas where big banks won't go. these agencies have their work cut out for them. i will look to our nominees to place priority on these issues at their agencies. possibly the financial stability oversight council is a key cooler of the wall street reform act. it was created to identify systemic risks posed by large complex financial institutions before threatening the stability of the economy. and please consider the

nomination of mr. woodall to be the voting insurance expert. aig showed us how interconnected the insurance industry is with the health of our economy and i am sure mr. woodall's contribution will be invaluable. this ability of our financial system and our economy is important so i hope we can move quickly on these nominations. not to senator shelby for opening remarks. >> the committee will consider several important nominations. martin gruenberg to serve as head of the federal insurance deposit corporation. he served right here with us on the staff over 19 years. for the past six years he served

as vice chair of the federal deposit insurance corporation. as chairman he would oversee the fdic in a challenging time. due to the financial crisis and the weak economy bank failures continue at a steady pace. it will be no easy task for the fdic to resolve these failed banks and a manner that protect the deposit insurance fund. the fdic must also decide how to undertake the new regulatory responsibilities under the dodd-frank act. i hope to hear how mr. gruenberg would approach these tasks. in particular i would like to learn his views on whether the fdic's new resolution authority will be sufficient to end too big to fail and prevent further government bailouts. also before us today is thomas curry, nominee to the comptroller of currency. regulating the largest banks the comptroller pays the big role in

determining safety and soundness of the banking system. accordingly i hope to hear his views on capital requirements. one of the lessons of the financial crisis should be the importance of maintaining strong capital requirements especially for large global banks. roy woodall is nominated to serve in the financial stability oversight council. he will be a sole member on the kennel for specializing in insurance issues for the first person to hold this position. he will be working on a council that includes treasury secretary, federal reserve chairman and all the heads of major financial regulatory agencies. since mr. woodall will not be supported by the staff of financial regulators unlike the other members of the cal will fight am interested in hearing how he believes he can most effectively expresses his views and help the council monitor systemic risk. the federal government has paid little attention to insurance.

the failure of a ig demonstrated the federal govern and needs to do a better job monitoring risks in this critical facet of the financial market. hopefully mr. woodall can improve the government's understanding of the risk presented by insurers and in so doing help prevent another aig. i look forward to hearing from the nominees. >> any other members who would like to make any remarks? for brief introduction of our three nominees. the former chairman of the senate banking committee will introduce martin gruenberg. >> chairman johnson, thank you very much. senator shelby, senator moran, i am pleased to be back in the committee room and i am mindful

of the chairman's gentle admonition when he introduced me when he said brief introduction. i will do my best to abide by that. it is hard for a former senator when he gets a microphone to do that. i am pleased to have the opportunity to come before the committee today to introduce the president's nominee for chairman of the fdic, marty gruenberg. he worked on the senate banking committee for almost two decades both as staff director of the subcommittee on international finance and monetary policy and as senior counsel. i think all would agree made an extraordinary contribution to the work of the committee and i should take a moment to recognize all staff to the committee who do a terrific job day in and day out. i have enormous respect and

admiration for those who staff the committee and this staff in particular have high standards over the years. during his time on the committee he was involved in all the major legislation enacted by the banking committee including the financial institution and reform recovery act, federal deposit insurance corp. improvement act, highly relevant to this nomination. in august of 2005 he was appointed by president george w. bush to the fdic as vice-chairman and was confirmed, recommended by this committee and confirmed by the senate. as fdic vice chairman he was closely involved in all the efforts to respond to the financial crises we have

encountered. he served as acting chairman of the fdic for eight months from november of 2005 shortly after he went on the board until june of 2006 because chairman john paul, close friend of both presidents bush went to coordinate recovery effort on the gulf coast in the aftermath of hurricane katrina. four months after he left the committee he was acting chairman of the fdic. i called him up and i said i read in the american banker that you are chairman of the fdic. in four months time. he gave an embarrassed laugh and said that is right. i said is this a great country or what? i want to close with this observation. given his experience on the banking committee and that the

fdic marty is well prepared to surf as its chairman. he would bring from the beginning stability and continuity to the work of the fdic which the chairman and ranking member indicated is an important consideration. i simply say to the members of the committee i know marty to be a person of exceptional ability and character and i strongly commend him to you for this position. thank you all very much. >> thank you. i will not introduce thomas curry who took office on january 12th, 2004, as a member of the board of directors of the fdic for six year term. mr curry serves as chairman of work america board of directors.

prior to joining the fdic board of directors mr curry served five governors as commonwealth of banks. he served as chairman of the conference of state bank supervisors from 2000 to 2001. senator ben nelson will introduce roy woodall. >> good morning, mr. chairman and ranking member shelby and members of the committee. thank you for conducting this hearing today and for giving me the opportunity to offer a few comments on an outstanding nominee, roy woodall. nominated to the member of the financial stability oversight council. when he asked me to be with him today to introduce him i said i would be honored to introduce him because we go back a ways. i first got to know him in the

year the sound of music won academy award for best picture and the first tv episode of star trek was broadcast. in a what it cost to send a letter first-class than? $0.05. that might seem like 100 years ago. not quite but it was. 45 years ago. i first met roy woodall in 1966 when he was appointed commissioner of the kentucky insurance environment. i was working in the nebraska department of insurance at the time. over these years i've followed his career closely. we kept in touch and have many common friends. as we all know the dodd-frank law calls for independent insurance expert to make sure the insurance viewpoint is acknowledged in the financial stability oversight council's work. i can think of no one better qualified to be that expert than roy woodall. he is an outstanding leader who

possesses a sharp line and the background and knowledge needed to do the job well. equally important he has the wisdom too. he brings an invaluable perspective gained through half a century of experience in insurance and insurance regulation. roy woodall worked at the state level as insurance attorney and helps rehabilitate troubled insurance companies. he has been a national leader serving as president of the national association of life cos and after a merger served as senior official in the american council of life insurers. and a more recent year as senior insurance analyst with the department of treasury. i asked the committee worked diligently and quickly to work toward the confirmation of roy woodall to fulfill the duties of his position with skill, wisdom and integrity and great success. thank you, mr. chairman. >> thank you. i look forward to hearing the

nominee's testimony. will vote nominees please rise and raise your right hand? do you swear or affirm that the testimony you are about to give is the truth, the whole truth and nothing but the truth so help you god? do you agree to appear and testify before any duly appointed member of the committee or the senate? please be seated. please be assured your written statements will be part of the record. please also note that members of this committee may submit written questions to you for the record and you should respond to these questions promptly in order for the committee to proceed on your nomination. i invite all the witnesses to introduce your family and friends in attendance before beginning your statement.

mr gruenberg, please begin. >> thank you very much. i would like to introduce my wife donna who is sitting next to me. chairman johnson, ranking member of the 14, members of the committee, it is my privilege to appear before u.s. the president's nominee to serve as chairman and member of the board of the federal deposit insurance corporation. i would like to thank president obama for the honor of this nomination and chairman johnson and ranking member shall be for scheduling this confirmation hearing. i have had the privilege of serving as vice chairman and board member of the fdic since 2005 having been nominated by president bush and confirmed by the senate. from november of 2005 to june of 2006 i served as acting chairman following the departure of former chairman donald powell. i am now again serving as acting chairman following the recent

departure of former chairman woodall 13. prior to joining the fdic i worked for senator sarbanes and the housing and urban affairs from 1987 to august of 2005. i had the opportunity to work on major legislation acted on by the committee including the interstate banking -- and the a sarbanes oxley act. in addition, i had the opportunity to serve on the board as respondent to the most severe financial crisis in the united states since the 1930s. it is fair to say the deposit insurance resolution supervision functions of the fdic proved critical to maintaining public

confidence and financial stability during the crisis. the experience of serving on the staff of the senate banking committee and the board of the fdic have been good preparation to serve as acting chairman and if confirmed chairman of the fdic during what remains a challenging year go ahead. there are some positive signs. over 880 insured institutions remain on the fdic's problem bank list but we believe that number may start heading down in the near future. similarly, the fdic closed 157 failed banks last year we are projecting a substantially smaller number of bank failures this year. 58 banks have failed this year compared to 103 at this time last year. the fdic's deposit insurance fund which has been an negative balance as a result of the bank

failure actually moved into positive territory at the end of june. in terms of priorities the fdic will have significant new responsibilities to implement under the dodd-frank act. resolution is systemically significant financial institution and as primary federal regulator of the majority of the country's community banks the fdic carries a particular responsibility for the future of this segment of the financial industry. finally the ftse will also continue to play a leading role expanding access to financial institutions to all-american as as a vehicle for economic opportunity and financial security. mr. chairman, ranking member shelby, it has been a privilege for me to serve on the board of the fdic for six years now. i have deep respect for the professionalism and dedication

of the staff of the fdic who have performed with such distinction during this recent difficult period. i believe the fdic which celebrated its 70 sixth anniversary three years ago has proven itself to be one of our country's great public institutions. it is certainly the greatest honor of my career to have been nominated by the president to serve as chairman of the fdic and to be considered by this committee for confirmation. thank you very much. i will be pleased to respond to your questions. >> thank you mr. gruenberg. mr curry, please begin. >> chairman johnson, ranking member shelby and members of the committee, thank you for this opportunity to appear before you today. i am honored president obama has nominated me to the comptroller of currency. eight years ago i had the honor to be nominated by president

bush and to come before this committee for confirmation hearings to be a board member of the federal deposit insurance corporation. it has been a tremendous privilege to serve at the fdic during one of the most tumultuous economic periods in our nation's history. i take great pride in the work of the fdic and its dedicated staff who maintain the american people's trust in the fdic deposit insurance guarantee and the fundamental safety and soundness of our financial system. independent and professional bank regulatory agencies like the fdic and office of the comptroller of currency are one of the strengths of our financial system. prior to my federal service i served five successive massachusetts governor's as commonwealth commissioner of banks for ten years and serve

seven years as senior state regulatory official and attorney. my state bank regulatory experience also coincided with the new england banking crisis of the late 1980s and early 1990s. during this period of regional economic disruption and subsequent recovery and gained invaluable experience and perspective which served me well as an fdic board member. my 25 years of experience as a federal and state bank supervisor has underscore of the fundamental importance of safe and sound banking industry to our economy particularly in times of stress. economic recovery and prosperity requires a healthy independently regulated banking system that has the financial capacity and confidence to extend credit to individuals and businesses. i believe my public service

career has given me invaluable financial safety and soundness and public protection, regulatory experience and judgment to capably serve as comptroller of currency if confirmed. it has been the greatest professional honor of my life to serve my country during this difficult time. should the senate choose to confirm me i look forward to the opportunity to lead the team at the office of the comptroller of currency as it serves the individual businesses and communities that benefit from a safe, sound and fair national bank system. thank you, chairman johnson and ranking member shelby for this opportunity and i look forward to your questions. >> thank you. mr. woodall, please begin. >> chairman johnson, ranking member shelby and distinguished members of the committee it is

my honor to appear before you today and deeply honored to be president obama's nominee for this position. i would like to thank you and your staff for help and move my nomination forward. with me today is my wife jane, my best friend and life partners for 53 years along with our four sons and their respective families. jane is a former english teacher and now serves as general manager of the smithsonian chamber of music society. our son in chronological order, sam the oldest is an attorney in washington brought to the hardwood floor in contracts in georgia. labor works with the va national heritage program in virginia and garner our youngest is an intelligent analyst for the fbi. when we get together with our daughters in law and nine

grandchildren, filling up this space, if approved by the committee and confirmed by the senate i note the constant support will continue to lie in my thoughts and actions as i carry out the duties as a member of financial stability oversight council. as stated earlier, fsoc was created to identify risks to u.s. financial stability for market discipline and respond to emerging threats. is comprised of existing federal financial service regulators as voting members. with marty and calm serving on that as heads of the new agency's. since there is no existing federal financial service regulator in the insurance field the bills provided presidential

appointment of this independent person with insurance expertise in order to ensure that insurance which represents substantial proportion of the united states financial system is appropriately directed ice and accommodated within the new framework. i frankly know of no one who can technically qualified as an undeniable expert in all aspects of the diversified and constantly changing insurance industry as well as state based regulatory system and its international position. if i am confirmed i do believe my half century of experience in insurance would provide the insurance perspective that was envisioned by dodd-frank. insurance is in my blood. my grandfather started selling insurance from a newly drawn wagon in 1904 and continued to be a leading insurance producer in princeton and western

kentucky for 50 years. my father started his general agency in kentucky in the 20s and ran it until he retired in 1973. i was first introduced to the regulatory side of insurance as a lot student in summer of 1961 at the university of kentucky when i was an intern at kentucky insurance department. after getting my law degree in 1962 i continued working as an attorney for the department and became general counsel in 1964 and appointed commissioner in 1966. after the completion of my term i practiced law in kentucky until 1972 at which time i became a court appointed rehabilitator of three publicly owned life-insurance companies that had been seized by the state.

the rehabilitation was concluded in 1976 until 1980 i worked as assistant to the president's, family owned insurance company in louisville, kentucky. at that time i was elected president of the atlanta based insurance trade association. national association company which merged in 1993 with american council of licensed insurers or acl is as many of the note. i served as managing director and chief counsel for state relations and to my retirement in 1999. i became counsel of the atlanta based law firm pretty well set on that type of work for the rest of my life but then 9/11 hit. with many others are no the terrorist attacks of the 9/11 change the focus of my life and my career. i became an insurance consultant to the congressional research service says it address the needs of congress in developing

terrorism risk insurance act. following the passage by was asked by treasury to assist in its implementation of the new law. i continue to serve as treasury insurance policy analyst for eight years monitoring all types of insurance issues and state insurance regulatory system. all these insurance related areas my experience taught me lasting lessons about various aspects of insurance. i believe those experiences qualify me to serve in the position i have been nominated. if confirmed by the senate i pledge to work closely with other members to continue expanding my knowledge, fascination with and passion for the complex world of insurance and the substantial role it plays in our financial system. thank you for the opportunity to appear before you today. i look forward to answering your questions. >> thank you, mr. woodall. we will begin the question and

answer period. will the clerk put five minutes on the clock for members' questions? mr gruenberg, can you tell us how the new office of complex financial institutions positions the fdic to address its new responsibilities? >> yes, mr. chairman. the key new responsibility the fdic has under the dodd-frank act is responsibility for title 2 of 44 or ordering liquidation of systemically significant financial companies. in addition we have responsibility under title i for the resolution plan for systemically significant companies required to prepare. these are new responsibilities created under this act and implementing them in a credible

way is a major challenge for the agency. it is a major new challenge for any agency of any financial regulators around the world. to undertake this responsibility would establish a new office of complex financial institutions which have three key responsibilities. first there will be a group within that office responsible for monitoring the condition of the large systemically significant company from the standpoint of responsibility. ..

and finally the third group within this office will be responsible for dealing with the cross-border relations with the foreign supervisors for the international operations of these systemic companies, many of them, as you know, have extensive foreign activities and an effective resolution of these companies would really inquire corporation and coordination across borders. this is our major new challenge. we are in the process of setting this office up and we expect it to be operational by the end of the year and this is our top priority in terms of the

implementation of the legislation. >> richard curry, as comptroller, you will be expected to be independent, exercise independent judgment and act independently to the treasury department. are you prepared to act independently and use your own judgment? >> senator, yes, i believe so. i have, i think, a 25-year history of acting independently as both member of the fdic an independent agency of the united states. and as bank commissioner to the commonwealth of massachusetts. as bank commissioner in particular, you're called upon often to make decisions that affect individuals, institutions and communities. many times those decisions are unpopular. however, i believe in my past history and experience, i've demonstrated the independence to fairly and reasonably apply the

rules and laws that govern bank regulation. >> mr. woodall, if the fsoc completes to rulemaking this important financial institutions, you will be the lone insurance boss in this role. how will you approach this process and do you think insurance companies should be designated? >> well, as far as the first part fortunately there are two other members that are members of fsoc even though they're not voting. one is the director of the federal insurance office that was created by dodd-frank and the other is a state regulator john huff from missouri who represents the state regulators so there are really three of us that will be working on

insurance issues but the appointed position that i have been nominated for is the only voting member. certainly i would be working in cooperation with the other two members and with all members of fsoc in trying to bring the insurance perspective. now, as far as the question as to whether they are systemic, i think that has to be done on a case-by-case basis. and looking under the hood of each insurance company that may be, you know, looked at to see whether or not they're systemic but i think generally that most people agree and i agree that if a company follows the traditional core model of insurance products and practices, they're likely not to be systemic. however, you don't know that until you see what sort of products they're selling, what interconnectedness there might be with other insurance companies or noninsurance companies or banking institutions. and i think that's why it does have to be done on a

case-by-case basis. >> thank you, mr. chairman. basel 3, the fdic chairman and the comptroller as you well know play important roles in ensuring that our nation's banks hold official capital to guard against another financial crisis. recently, the basel committee reached an agreement on the basel 3 capital accords with the aim to increase capital requirements for large international banks. then mr. gruenberg and then mr. curry, do you support higher capital requirements for large financial institutions? and what is your assessment of the new basel 3 capital accords and will they work? >> thank you, senator shelby. we do support the new basel 3 agreements. the fdic is the newest member of

the basel 3 and i represented at meetings and we believe it's a step forward the strength of capital both in the united states and quite importantly internationally. historically, institutions have had higher levels of capital than some of the large foreign financial institutions. and basel 3 will have the effect of both strengthening the quality and the amount of capital under the u.s. standards and importantly apply those standards internationally. both the leverage ratio and the risk-based capital standard. so from both a domestic standpoint and an international standpoint, it seems to us to be a significant step forward. >> mr. curry? >> i would -- senator, i would agree with vice chairman gruenberg that capitalists is an important help to the financial system. at the fdic i think we have a

demonstrated position of looking for both quantity and quality of capital. i would also offer that this past crisis and earlier crises have demonstrated that when institutions or the banking system needs capital, it's when it's the hardest to obtain it. so having a strong capital level in place in advance of an economic downturn is critically important. with respect to basel 3, basel 3 i think achieves those important goals of stronger capital on an international basis and will work to potentially eliminate any unlevel playing field between domestic banking institutions and foreign institutions. >> preemption language, i'll address this to mr. curry. there's an ongoing debate on whether the dodd-frank act changed the standard but

determining when national banks are subject to state law. the occ and the authors of the preemption amendment of dodd-frank have taken one position. the treasury department disagreed with that view. mr. curry, what are your views about how the dodd-frank preemption preventions have been interpreted by the occ and the treasury department? >> i understand that the actual language of dodd-frank is a matter of some controversy between interested parties. generally speaking, i think the principle is clear from the constitution that the federal law supersedes conflicting state law and that's an important concept to remember. >> that the position the comptroller's office takes? >> i believe so. it's a federal agency. >> are you aware of the position that the treasury department department's taking. >> i understand that the treasury department did violate public comment on the occ's

opposition. i think having a comment on the record is probably the most appropriate way to express those views. ultimately, i think it's incumbent upon the occ to maintain its independence as a bank regulatory agency and to remain free from any undue influence from any external source. >> mr. gruenberg, a report by the government accountability office we call gao as you all know that prompt corrective action has not prevented losses to the insurance fund. the gao found every bank that underwent prompt corrective action because of capital deficiencies and failed since 2008 has produced a loss to the deposit insurance fund. the gao also found that the -- and i'll quote, the presence and time limits of enforcement actions were inconsistent, their words. for example, more than 80% of the banks that failed were on

the regulatory watch-list that you alluded to earlier for more than a year on average before failing. do you agree with gao's findings? and what steps would you take as chairman to improve prompt corrective action and protect the deposit insurance fund. what would you do differently than what we've been doing? >> thank you, senator. i do agree with the findings of the gao report. i think one of the lessons we've learned from this crisis that capital tends to be a lagging indicator and capital is the indicator for prime corrective action so that during the course of this crisis to the extent we were relying on capital early warning devices signs for institutions they did not prove as effective as we'd like. i should point out that the pca still proved important because it established once an

institution reaches that critically undercapitalized level of 2%, it provides for certainty in terms of the resolution process which is quite important. but in terms of an early warning indicator it has not proven as effective as. for each failing institution the inspector of the fdic has to prepare a report on the causes of the failure. and the ig found and these are called material loss reviews and our inspector general in the course of conducting these reviews identified prekey factors common to failing institutions. one was rapid growth. two was concentration in commercial real estate and three was reliance on brokered deposits and other volatile deposits. we have asked -- i actually chaired the audit committee at the fdic which is oversees our

ig, we have asked the ig to prepare a set of recommendations for us based on these material loss reviews as to how prompt corrective action could be improved. and we actually expect to receive that report in the near future. we'll be glad to chair the report. >> thank you, thank you, mr. chairman. >> senator reed? >> thanks very much, mr. chairman. and mr. gruenberg, the chairman early a few months ago, weeks said that the federal reserve is committed on rulemaking on the so-called living wills for large institutions by late this summer. what is the fdic's schedule with respect to this rulemaking? >> late this summer we've been working in tandem with the fdic. we're really near -- we issued a joint rule earlier this year. i think we are near completion of the final rule.

and we do expect to issue the final rule in august. >> very good. thank you so much. you are the primary regulator at community banks and there is -- they are vital to our economy and they usually are the ones who are doing the most aggressive lending to small business and have the best record in terms of the lending to small business and that creates jobs. your view of the impact of the dodd-frank on the community banks and the community bank and many of the provisions of dodd-frank were explicitly excluded from application of small banks given one they were not the major cost of this dynamic constitution they make to local communities but can you give me a brief sort of view of where you think they stand at the moment? >> yes, senator. as you know, the fdic is the primary federal regulator, the majority of community banks in

the united states, so we -- i think it's fair to say we bear a particular responsibility for the future of that important segment of our financial industry. i would note community banks account for about 11% of the banking assets in the united states but account for nearly 40% of the small business lending done by all insured institutions in the u.s. so they really occupy a very important niche in our financial system. on balance i believe they have come through this episode reasonably well. they have been impacted of the 380-so institutions that have failed in the course of this episode, over 300 of them have been institutions of assets over a billion dollars. but it's worth noting that even with that, we still have nearly 7,000 community banks in the united states. and most of them have worked their way through this difficult period in good shape and are

really positioned now to continue to play the important role. in regard to dodd-frank, you noted accurately that in many of the provisions that are applied to the larger institutions, institutions -- smaller institutions are excluded, and i would note in particular that the deposit insurance provisions of dodd-frank on balance i think are actually helpful to community banks. the increase in the limit on deposit insurance to $250,000 is something the community banks have sought and has been a -- proved to be during the course of this crisis a valuable source of attracting liquidity to community banks which proved quite stabilizing. in addition the act changes the assessment base on which deposit insurance premiums are charged from deposits to assets.

the consequence of that is actually to shift the burden of funding deposit insurance more to institutions with assets over $100 billion and for institutions with assets under 10 billion, they will actually in the aggregate receive a 30% reduction in their deposit insurance premiums under the act. so it will mean real money for community banks and it should be helpful to them. so on balance particularly those provisions, i think, were positive. >> thank you very much. mr. curry, just first a quick comment. you have served at the state level under a number of governors, both republicans and democrats, so you have been essentially recognized on both sides of the aisle as a consummate professional and i think that's a quality that we're looking for in the next

occ director, comptroller. the other factor, too, i think you bring a valuable perspective to the efforts because a lot of the issues that has been suggested from some of the questions involve this constant sort of discussion of and rebalancing of the lines between appropriate and national authority and local state bank regulations, local state banking institutions. so i am particularly pleased that you have been nominated and i wish you well. and i also, too, want to join senator shelby who's been one of the most vigorous advocates of the strong capital rules to re-enforce his point about the need for u.s. we hope -- i hope the occ comptroller to have a significant capital in place. >> thank you, senator. >> and since my time is expired and i just mr. woodall, you're

going to provide a valuable sort of expertise because the world of insurance is -- it's not a federal world here in the united states. but internationally particularly. i note that in great britain, 30% of the assets in their financial system are held by insurance companies, not by financial institutions or banks, rather, but 15% in the united states. so both looking within the united states and looking internationally, your views are going to be extremely important and once again, i would hope that we'd move quickly to confirm you and get you on the fsoc. thank you for your service. >> thank you. >> thank you, mr. chairman. and i thank all of you for being here and being willing to serve today the way you offered yourself and i thank your families for being here. i know it's -- you certainly will not receive many tough questions with all of these family members in the audience. so we're glad they're here and we're glad to see all of them.

i'll start with you, mr. vice chairman, soon to be chairman, when dodd-frank was being debated and discussed, the previous chairman did an outstanding job of convincing the majority of members of the senate and the house to turn you into a super entity with orderly liquidation abilities. as we were leading up to that, many of the rating agencies began saying that because they really thought that too big was going to end, they were thinking about downgrading these institutions and now the law is the law and people have interpreted what it really says, the big institutions in our country are receiving disproportionately higher ratings and benefits so it's evident most of the world does not believe that we've ended too big to fail and i'm wondering if there's anything you're going to see us about to change orderly

liquidation so that people know that, in fact, we are in this country and end the prospect of any too big to fail. >> thank you, senator. that's really a critically important question if i may say. it's our view that the authorities provided under title 1 and title 2 under the new law really are sufficient to deal with the issue. the challenge to us and what i think what we're going to have to demonstrate with credibility to the financial markets is our capability to implement the authority that we've been given. and that was really the basis of my response to the question that chairman johnson asked earlier. we have to demonstrate the capability to close a systematically significant financial company without creating a significant disruption to the financial system as a whole. there's no greater priority for

us. i really -- it doesn't surprise me that much that the markets are in some sense are taking a show me attitude. you know, simply providing an authority is not a demonstration of a capability and willingness to carry it out. and i think the challenge to the fdic in particular will be to demonstrate both we have the capacity and a willingness to implement it. >> you think the bankruptcy code ought to be tremendously expanded to that people know that unless there's some really unusual situation, there's a better vehicle for institutions through bankruptcy? >> i think the way the law is structured, the premise is that the bankruptcy is still the first recourse for dealing with the failure of a financial company. it's only been the circumstance -- and, frankly, i hope and expect it to be rare where a determination is made that an effect of going through

the bankruptcy process could present issues for the system as a whole in which case you would turn as a final resort to the orderly liquidation authority under title 2. i think it's -- it's a last measure to avoid a disruption to the system, and i think that's as it should be. >> would you be willing to work with us to tighten orderly liquidation and to make sure that these large institutions aren't enjoying significant benefits because people believe that they are too big to fail and to work with us on streamlining the bankruptcy code so that it actually would work better for these large highly complex institutions? >> yes, sir. >> okay. we talked a little bit in our office -- i think you're aware one of the biggest complaints community bankers have across this country is the lack of consistency with examiners in charge. you know it's a problem. so a big part of your job and i think you know this is going to

be to get the culture better as it relates to that issue and not in any way criticizing the former chairman we had these same conversations but examiners in charge in order to make sure their careers are not interrupted by making mistakes are no doubt being overly zealous and really creating a self-fulfilling prophesy around our country and i think you'll work to end that? >> senator, i'll have no higher priority than the community bank responsibilities and we will work with our examiners to ensure examinations are done in a balanced and fair way as possible. >> just so i have a few seconds. do you, mr. curry, i think we all are concerned about this federal preemption issue. and, you know, i know that you were commissioner of -- state commissioner banking from massachusetts back in 2000. and made a quote and i just want you to reaffirm that this is not where you are but we suggest

that -- we suggest that federal preemption itself has the unintended consequence of limiting state regulator's ability to protect consumers and ensure a healthy banking and lending industry. many states responded through statute or regulation to protect consumers from predatory practices. however, it's been perhaps the unintended consequence of federal preemption that has made it difficult for states to offer the protection of their consumers to demand. are you going to be in a position, obviously, of making sure that we have uniformed national standards and yet seem to have in the past indicated that you question that and we just want you to affirm that you're going to be independent. you're not going to let treasury browbeat you into a different position and that you're denouncing this former position. >> i want to assure you, senator, that i will zealously enforce and uphold the national

bank act and particularly, where it relates to federal preemption. what i would want to point out is that i think the dodd-frank act provisions actually resolve some of the issues that i was highlighting in that statement. there is now much more clarity in terms of the role of state attorneys generals, the applicability of federal law to -- and its relation back to state consumer financial laws and you also have the creation of the cfpb to address any gaps in terms of consumer protection. so i do think, you know, my statement in the past is actually addressed by dodd-frank. >> thank you both. and mr. woodall, you're apparently universally loved. [laughter] >> i may have a question for you later, but we'll see. thank you. >> senator menendez.

>> thank you, mr. chairman. let me in this atmosphere that we're in here in washington, let me strike a bipartisan note is senator corker and say to you, mr. gruenberg, his observation about community banks and just banks in general, you know, we're sitting on the committee saying to those institutions particularly those that we helped save in 2008 we'd like to see lend and we listen to a chorus of voices everything you're asking us to do we're being told differently by examiners. the question is how do you strike the pendulum and for those of us who had to cast the votes to change the force of 2008. we won't want to see that again. by the same token, many of us have the observations that the pendulum has swung so far that we are creating a crisis in terms of getting access to capital and moving this marketplace and creating an economy that can thrive against. without that access to capital it's not going to happen.

and if i've listened to one bank president or board of directors after another, i get a common thread and when i get a common thread i don't always believe it's contrived, you know? so i hope -- you know, we have performing assets being asked to be recapitalized. we have areas of lending which basically an examiner is saying don't do it. so i understand that there were some not the cop on the beat when they needed to be. that doesn't make them now, you know, the total opposite. so i'd like to hear how you'll direct and define this balance and the pendulum so that we can get this economy moving again. >> thank you, senator. that is really one of the key questions. the fdic has six regional offices around the country. over the course of this year, i had the opportunity to visit each of our regional offices.

and in each office, i met with a group of our examiners without senior management present except for one meeting where the senior manager snuck in, the rest it was without management present to try to hear from them what they were seeing in terms of the institutions they were examining. i will tell you and what we tried to communicate to them was the need tore balance and to work with the institutions to enable them to the maximum extent they can, to carry out their basic mission which is extending credit to credit-worthy borrowers. i will tell you for what it's worth, it's my sense that most of my examiners who are career professionals who try to carry out their job in a balanced way. i have no doubt that there are some that go too far, go

overboard. i think most are trying to do their best in a difficult environment. what i will say to you is that we are staying in close touch. people often talk about a disconnect between the policymakers in washington and the examiners in the field. we will do our best to maintain or see that that connection is followed through. to stay in close touch with our examiners and to encourage them to exercise judgment and discretion to allow these institutions to carry out their basic purpose. that's certainly going to be one of my top priorities. >> i appreciate that. let me ask both of you, mr. curry and yourself, i'm concerned if the qualified residential mortgage definitions being worked out by regulators isn't broad enough it could hurt a housing market that is already suffering enormously in terms of being part of our national economic recovery. especially, if you perceive the high down payments of 20% or more. can you comment on that? >> i would