thinking of you, and i know that you're looking down at me, all of your other grandchildren, especially phillip, amanda, and your great grandson james, your children and especially grandma, and i know that you're smiling. i look forward to the days when i tell my own children and grandchildren about the wonderful person that you were and always will be and how you have truly inspired me. you will forever be my hero and you will never be forgotten. william ralph raub gerard f. rauzi alexey razuvaev gregory reda sarah anne redheffer michele marie reed judith ann reese donald j. regan robert m.

regan thomas michael regan christian michael otto regenhard howard reich gregg reidy james brian reilly kevin o. reilly timothy e. reilly joseph reina jr. thomas barnes reinig frank bennett reisman joshua scott reiss karen renda john armand reo richard cyril rescorla john thomas resta sylvia sanpio resta david e. retik todd h. ruben luis clodoaldo revilla eduvigis reyes jr.

bruce albert reynolds john frederick rhodes francis saverio riccardelli rudolph n. riccio ann marie riccoboni david harlow rice eileen mary rice kenneth frederick rice iii cecilia e. richard vernon allan richard >> and my father, tom estrada. you are loved and hissed every day by grandma and grandpa, your brothers and sisters, mommy, thomas, justin, and i. we will always remember your laughter, smile, and the amazing father, brother, son, and friend you always were. may god protect you always. god bless. >> and my cousin thomas ashton. we love you and his you and we will forever hold you in our heretos. be sure to watch over your nephew, tommy, and god bless america. claude daniel richards gregory david richards michael richards

venesha orintia richards jimmy c. riches alan jay richman john m. rigo frederick charles rimmele iii rose mary riso moises n. rivas joseph r. rivelli jr. carmen alicia rivera isaias rivera david e. rivers linda ivelisse rivera paul v. rizza joseph r. riverso stephen louis roach john frank rizzo leo arthur roberts joseph roberto michael edward roberts michael e. roberts jeffrey robinson donald walter robertson jr. donald arthur robson michell lee jean robotham raymond j. rocha antonio a. rocha john michael rodooshgs laura rockefeller john rodak antonio j. rodrigues anthony rodriguez carmen

milagros rodriguez gregory ernesto rodriguez mayra valdes rodriguez marsha a. rodriguez david bartolo rodriguez-vargas richard rodriguez >> and my father joseph, we love and his you very much. >> and my uncle and hero, john robert cruz, who lives in my

heart always while his smile continues to light up my world. i love you and i miss you. matthew rogan jean destrehan roger karlie barbara rogers scott william rohner keith roma joseph m. romagnolo elvin romero efrain romero sr. james a. romito sean paul rooney eric thomas ropiteau aida rosario angela rosario wendy alice rosario wakeford wendy alice rosario wakeford wendy alice rosario wakeford mark h. rosen brooke david rosenbaum linda rosenbaum sheryl lynn rosenbaum lloyd daniel rosenberg

mark louis rosenberg andrew ira rosenblum joshua m. rosenblum joshua alan rosenthal richard david rosenthal philip martin rosenzweig daniel rossetti richard barry ross norman s. rossinow nicholas p. rossomando michael craig rothberg donna marie rothenberg mark david rothenberg james michael roux nicholas charles alexander rowe edward v. rowenhorse julie roulette timothy alan roy sr. paul g. ruback ronald j. ruben joanne rubino david m. ruddle >> and my big brother, john m. poacher.

we miss you and think of you daily. 13 year ago we lost a piece of us on that day, but most importantly we lost an amazing role model, brother, husband, son, and friend. our family has changed so much since that day. we have welcomed new members and seen others pass on. but through this change one thing still remains the same, and that your guidance, love, and loyalty are deeply missed. michael and i continue to honor your memory in our children and hope they continue to pass on their -- the love, passion, and sense of family that you gave each and every one of us. continue to show us your special signs, guide us, protect us, and love us from your place of rest.

>> and my father-in-law, whom i've never met, but i see his kind and loving nature in my husband and i am proud to be part of the wonderful family he helped create. bart joseph ruggiere susan a. ruggiero adam keith ruhalter gilbert ruiz robert e. russell b stephen p. russell steven harriy russin michael thomas russo sr. >> my friend wayne alan russo. joseph ryan jonathan stephan ryan matthew l. ryan tatiana

ryjova christina sunga ryook thierry saada jason elazar sabbag thomas e. sabella scott h. saber charles e. saban sr. joseph francis sacerdote jessica leigh sachs francis john sadocha jude safi brock joel safronoff edward saiya john patrick salamone marjorie c. salamone hernando rafael salas juan g. salas esmerlin antonio salcedo john pepe salerno richard l.

salinardi jr. wayne john saloman nolbert salomon catherine patricia salter frank g. salvaterra paul richard salvio >> and my sister patricia a. cody. pat, today is a solemn day, a day our great nation remembers the victims of this tragedy. but we, the family and friends, we always remember, every day. and we shall never forget you. we love you. we miss you. and we will always hold you close in our hearts. >> and my wife, patricia ann massari. we love you and we miss you so much. you are forever in our hearts. thank you for watching over us and being our guardian angel in heaven. we will always love your beautiful smile.

it would light up the room so bright. so continue to shine your bright smile down on us with love and pain, and god bless the usa. samuel robert salvo jr. carlos alberto samaniego john p. samortino james kenneth samuel jr. michael san phillip hugo m. sanay alva cynthia jacqueline sanchez. jacquelyn patrice sanchez jesus sanchez raymond sanchez eric m. sand stacey leigh sanders herman s. sandler jim sands jr. ayleen j. santiago kirsten reese santiago maria theresa

concepcion santillan susan gayle santo christopher santora john august santore mario l. santoro rafael humberto santos rufino c.f. santos iii victor j. saracini kalyan k. sarkar chapelle renee sarker paul f. sarle deepika kumar sattaluri gregory thomas saucedo susan m. sauer anthony savas vladimir savinkin john michael sbarbaro david m. scales robert l.

scandole michelle scarpitta dennis scauso john albert schardt john g. scharf fred c. scheffold jr. angela susan scheinberg scott mitchell schertzer sean schielke steven francis schlag robert a. schlagel jon schlissel karen helene schmidt ian schneider thomas g. schoales frank g. schott jr. gerard patrick schrang jeffrey h. schreier john t. schroeder susan lee schuler edward w.

schunk mark evan schurmeier john burkhart schwartz mark schwartz adriane victoria scibetta raphael scorca >> and my sister seta, who we miss each and every day. our lives have changed since you're gone, but you're always remembered. rest in peace, and until we meet again. >> and my two uncles, firefighter frankie esposito and captain michael esposito. my uncles along with the other victims of the attacks, are the bravest of the brave. i know that they are safe in heaven watching over and protecting us and they will forever be a part of united states history. god bless them, and god bless america. janice m. scott randolph scott christopher jay scudder arthur warren scullin michael h. seaman

margaret m. seeliger anthony segarra carlos segarra jason m. sekzer matthew carmen sellitto michael l. sill vas howard selwyn larry john senko arturo angelo sereno frankie serrano marchian marian h.serba adele christine sessa sita nermalla sewnarine karen lynn seymour davis grier sezna jr. thomas joseph sgroi jayesh s. shah khalid m. shahid mohammed shajahan gary shamay earl richard shanahan den f. shenhour neil g. shastri kathryn anne shatzoff barbara a. shaw jeffrey james shaw robert john shay, jr.

daniel james shea joseph patrick shea kathleen shearer robert m. shearer linda june sheehan hagay shefi antoinette m. sherman john anthony sherry atsushi shiratori thomas joseph shubert mark shulman see wong shum allan abraham shwartzstein johanna sigmund dianne t. signer gregory sikorsky stephen gerard siller david silver craig a. silverstein nasima h. simjee bruce edward simmons diane m. simmons donald d. simmons george w. simmons arthur simon kenneth

alan simon >> and my grandfather, wall street's gentlemen, emerick harvey. >> and my beloved brother gary. the vestiges of time do nothing to ease so great a pain as that which is brought on by the taking of such a dear life in haste and vain. my heart cannot be consoled by any condolences or utterances for i continue to mourn my felled twin, my vanquished tower, my beloved baby brother. i love you. and your name and legacy endure in my son, who's not only your namesake but your mirror image. i love you, bro. michael j. simon paul joseph simon marianne simone barry simowitz jane louise simpkin jeff lyal simpson cheryl d.

sincok khamladai k. singh roshan ramesh singh thomas e. sinton iii peter a. siracuse muriel f. siskopoulos joseph michael sisolak john p. skala francis joseph skidmore jr. toyena corliss skinner paul albert skrzypek christopher paul slattery vincent robert slavin robert f. sliwak paul kenneth sloan firefighter stanley s. smagala jr. wendy l. small catherine t. smith daniel laurence smith gary f. smith george eric smith heather lee smith james gregory smith jeffrey r. smith joyce patricia smith karl t. smith firefighter kevin joseph smith leon smith jr.

moira ann smith monica rodriguez smith rosemary a. smith bonnie smithwick rochelle monique snell christine ann sinma dianne bullis snyder leonard j. snyder jr. astrid elizabeth sohan sushil s. solanki ruben solares naomi leah solomon daniel w. song maria soaper michael charles sorresse fabian soto timothy patrick soulas gregory thomas spagnoletti donald f. spampinato, jr. thomas sparacio john anthony spataro robert w. spear jr. robert spisz spiceman and my mother eli beth holmes george edward spencer iii and my uncle joseph palmer, you're a true hero.

we love you, we miss you, and we'll never forget you. robert andrew spencer mary rubina sperando frank spinelli william e. spitz joseph patrick spor jr. klaus johannes sprockamp saranya srinuan fitzroy st. rose michael f. stabile lawrence t. stack timothy m. stackpole richard james stadelberger eric adam stahlman gregory stajk alexandru liviu stan corina stan mary domenica stanley anthony starita jeffrey stark derek james

statkevicus patricia j. stats craig william staub william v. steckman eric thomas steen william r. steiner alexander robbins steinman edna l. stevens andrew stergiopoulos andrew j. stern norma lang stewardly martha jane stevens michael james stewart richard h. stewart jr. sanford m. stoller douglas joel stone lonny jay stone jimmy nevill storey timothy stout thomas strada james j. straine jr. edward w. straub george j. strauch jr. edward t. strauss steven r. strauss larry l. strickland

steven f. strobert walwyn wellington stuart jr. benjamin suarez david scott suarez ramon suarez savvier suarez ramirez yoichi sugiyama william christopher sugra daniel thomas suhr david marc sullins david marc sullins christopher p. sullivan patrick sullivan thomas g. sullivan hilario soriano sumaya jr. james joseph suozzo colleen supinski robert sutcliffe >> my father, on behalf of the

family we love and miss you every day. thank you and god bless america. colleen m. supinski robert sutcliffe seline sutter claudia swaine kristine m. swearson

brian david sweeney brian edward sweeney madeline amy sweeney derrick sword thomas f. swift gina sztejnberg kevin thomas szocik harry taback norbert p. szurkowski norma c. taddei joann c. tabeek keiichiro takahashi michael taddonio phyllis gail talbot keiji takahashi robert talhami paul talty sean patrick tallon rachel tamares maurita tam michael andrew tamuccio hector rogan tamayo rhondelle

cherie tankard kenichiro tanaka dennis gerard taormina jr. michael anthony tanner allan tarasiewicz kenneth joseph tarantino ronald tartaro michael c. tarrou darryl anthony taylor debra teflorella hilda d. taylor donnie brooks taylor taylor anthony taylor kip p. taylor leonard e. taylor lorisa ceylon taylor michael morgan taylor carl w. tepee sandra dawn teague yeshavant moreshwar tembe

anthony tempesta dorothy pearl temple stanley l. temple david gustav peter tengelin brian john terrenzi lisa marie terry goumatie thackurdeen harshad sham thatte michael theodoridis >> and my cousin lawrence michael pollack and my sister, cousin, and best friend, joanne flor lyle. as i have said many times before, joanne for a while but not nearly long enough. i love you forever. >> and my uncle peter burton hanson, my aunt, souhanson, and

my cousin, christine lee hanson. we love you and we miss you so much. thomas f. theurkauf jr. lesley anne thomas brian thomas thompson clive ian thompson glenn thompson nigel bruce thompson perry a. thompson vanavah alexi thompson william h. thompson eric raymond thorpe nichola angela thorpe tamara c. thurman sal edward tieri jr. john patrick tierney marry ellen

tiesi william randall tieste kenneth francis tietjen stephen edward tighe scott charles timmes michael e. tinley jennifer m. tino robert frank tipaldi john james tipping ii david tirado hector luis tirado jr. michelle lee titolo alicia nicole titus john j. tobin richard j. todisco otis v. tolbert vladimir tomasevic stephen kevin tompsett thomas tong doris torres luis eduardo torres amy elizabeth toyen christopher michael traina daniel patrick trant abdoul karim traore glenn j. travers

walter philip travers felicia yvette traylor-bass james anthony trentini mary barbara trentini lisa l. trerotola karamo baba trerra michael angel trinidad francis joseph trombino gregory james trost willy q. troy william p. tselepis jr. zhanetta valentinovna tsoy michael patrick tucker lance richard tumulty ching ping tung simon james turner donald joseph tuzio robert t. twomey jennifer lynn tzemis john g. ueltzhoeffer

>> and my father, sugiyama. dad, thank you for always being there with us. please stay at our sides forever. and to all of japanese people and my little brother in japan -- [ speaking japanese ] never, never, never forget. this is my prayer. [ applause >> and our cousin, paul, who would have been a grandfather for the first time this year. paul would have done a great job with his granddaughter, danielle jean, and my uncle, too, john monihan, who our family hasn't been the same the past 13 years, but we carry on with his spirit. thank you to all the first responder who is sacrificed so much that day and continue to protect us and the u.s. troops

who protect our freedoms at home and overseas. god bless america. [ applause ] tyler victor ugolyn michael a. uliano jonathan j. uman anil shivhari umarkar allen v. upton diane marie urban john damien vaccacio bradley hodges vadas william valcarcel felix antonio vale ivan vale benito valentin santos valentin jr. carlton francis valvo ii pendyala vamsikrishna erica h. van acker kenneth w. van auken r. bruce van hine daniel m. van laere edward raymond vanacore jon charles vandevander frederick t. varacchi

gopalakrishnan varadhan david vargas scott c. vasel azael ismael vasquez rond j. -- ronald j. valk arcangel vazquez santos vasquez peter vega sankara sastry velamuri jorge velazquez lawrence g. veling anthony mark ventura david vera loretta ann vero christopher james vialonga matthew gilbert vianna robert anthony vicario celeste torres victoria joanna vidal john t. vigiano ii joseph vincent vigiano frank j. vignola jr. joseph barry vilardo villalobos hernandez sergio gabriel villanueva chantal vincelli

melissa anne vincent francine ann virgilio lawrence virgilio joseph gerard visciano joshua s. vitale maria percoco vola lynette d. vosges garo h. voskerijian alfred anton vukuosa gregory kamal bruno wachtler karen j. wagner mary alice wahlstrom >> and my brother steven weinberg. steven, it's been 13 years, and although you're not here with us physically, there are times when we can still feel your presence. know that you have not been forgotten. your family and friends continue to keep your spirit alive

through their memories, dreams, and loving thoughts. thank you for watching over us, steven, from your big matchbox car in the sky. >> and my uncle brian christopher novotny. you are not forgotten. aina elizabeth vanil gabriela waisman wendy alice rosario wickford courtney wainsworth walcott victor wald kenneth e. waldie benjamin james walker glen wall mitchel scott wallace peter guyder wallace robert francis wallace roy michael wallace jeanmarie wallendorf matthew blake wallens maytal. l.

waller john wallace jr. barbara p. walsh jim walsh jeffrey p. walz ching huei wang weibin wang michael warchola stephen gordon ward timothy ray ward james a. waring brian g. warner derrick chistopher washington charles waters james thomas waters jr. patrick j. waters kenneth thomas watson michael henry waye todd christopher weaver walter edward weaver nathaniel webb dinah webster william michael weems joanne flora weil michael t. weinberg steven weinberg scott

jeffery weingard steven george weinstein simon weiser david m. weiss david thomas weiss chin sun packwells vincent michael wells debra jacobs welsh timothy matthew welty christian hans rudolf wemmers ssu-hui wen john joseph wenckus oleh d. wengerchuk peter m. west whitfield west jr. meredith lynn whalen eugene michael whelan adam s. white edward james white iii james

>> and my uncle emilio p. ortiz jr. i love you and i miss you. on behalf of our entire family and all your friends, we love you and we miss you and we'll never forget you. and to daniel lopez, we love you and we miss you too. >> and my godfather, kenneth. i wish you were here. i wish i had more memories of you. i wish every time i look at your picture that you would be there. you were my number-one fan. everyone misses you. emily and i miss you the most. and you are never forgotten. [ applause ]

john sylvester white kenneth wilburn white jr. leonard anthony white malissa y. white maudlin a. white sandra l. white wayne white leanne marie whiteside mark p. whitford leslie a. willington mark p. whitford michael t. wholey mary catherine wieman jeffrey david marie wildman glenn e. wilkinson earnest m. willcher john c. willett brian patrick williams candace lee williams crossley richard williams jr. david j. williams david williams debbie l. williams dwain williams kevin michael williams

louie anthony williams louis calvin williams iii john p. williamson donna ann wilson william eben wilson david harold winton glenn j. winuk thomas francis wise alan l. wisniewski frank paul wisniewski david wiswall sigrid charlotte wiswe michael r. wittenstein christopher w. wodenshek martin phillips wohlforth katherine susan wolf jennifer yen wong su chan steve wong yin ping wong yuk ping wong brent james woodall james john woods marvin roger woods patrick j. woods richard herron woodwell david terence wooley john bentley work william ren retired. main father, they say time heals all wounds.

there say hole in my heart that can never be filled. and my biggest regret is that you never met -- >> you were funniest man. dennis michael edwards. >> john d. where yemeniki sr. vicki yancyshevin yang. michael david yarnell merna shaquill wilson kevin w.yokum edward p. york kevin patrick york ray mopped r.

york suzanne martha yumas barington leroy young jr. donald arthur young edmond g. young jr. jacqueline young lisa l. young elkin yun joseph c.zarcoli adelle zakahare afada zalatizman robert allen zampira. >> mark zagarilli. christopher r.zagra jr. ira zazlow kenneth albert zellman martin morales zempola za zing

mark scott zeppelin ji jo zo ugo zing michael joseph zinze charles allen zion julie lyn zippa salvador paul zoes joseph j.zarcolla andrew stephen zucker iglal zukelman. >> and my brother. i miss you. it's been a long 13 years. >> and my brother kevin joseph, i miss you baby brother. watch out for us all, especially baby nicholas. love you. >> peter branyan.

>> thomas moore brennan. >> rodney diggens james domanico barbara mary habib philip hensler karen elizabeth pagarti stephen michael hagas richard b. hall christopher noble todd isaac dennis m. johnson robert a. lawrence jr. nancy yo juan william rivera paul v.rizza leo arthur roberts manards. spence

jr. kenneth j.swenson sandra c. taylor paul a. tagamire. >> and our brother, charles anthony murphy. zbh and my loving sister, chevron mentes. it's been 13 years but for us, it seems like yesterday. you're sadly missed by all especially your family and friends including your mom and you will always be the wings beneath my wings. >> good job.

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tonight at 8:00, ceremonies from today commemorating the 13th anniversary of the september 11th attacks. we'll have events from the white house and pentagon as well as the ceremony from new york that you just saw. at 8:00 eastern on our companion network c-span. and on c-span2, iowa public tv

hosts an hour long debate for iowa's third congressional district. participating are democrat stacy apple and republican david young. they'll discuss their platforms, future plans, and answer reporters' questions. that's tonight at 8:00 eastern on c-span2. >> this weekend on the c-span networks, american history tv is live from baltimore's ft. mchenry for the 200th anniversary of the?r star spangd banner sunday morning at 8. 306789. later at 6:00 p.m. eastern on american history tv, we'll tour ft. mchenry and hear how war came to baltimore in 1814 about the british barrage on the fort and why francis scott key was there to witness the fight. saturday night at 8:00 on c-span, the presidential leerdship scholar as program with former presidents george bush and bill clinton. and sunday afternoon, live coverage the harkin steak fry and sunday evening at 8:00, q&a with author rick pearlstine.

and on c-span2 saturday night at 10:00, on book tv's "afterwards," ken silverstein on the secret world of oil. and on sunday book tv, democratic senator from new york kristen jill brand on her life in politics and her call for women to rise up and make a difference in the world. find our television schedule at c-span.org and let us know what you think about the programs you're watching. call us at 202-626-3400, e-mail us comments@c-span.org or tweet us at #c-spancomments. with live coverage of the u.s. house and the senate on c-span2, here on c-span bs 3, we compliment that coverage by showing you the most relevant congressional hearings and public affairs events. on weekends, c-span3 is the home to american history tv with programs that tell our nation's

story including six unique series, "the civil war's 150th anniversary" visiting battle fields and key vents, american museums and historic sites. history books shall. the best-known american history writers. the presidency looking at the policy and legacies of our commanders in chief. and our new series, "real america" featuring fim lts from the 1930s to '70s. c-span tv. watch us in hd, like us on facebook and follow us on twitter. >> on tuesday, the senate banking, housing and urban affairs committee held a session on the implementation of the dodd-frank financial regulations act. witnesses include federal reserve board member daniel

tarullo, director of protection bureau richard cordray and mary jo white. today, i welcome back our hearings in this committee. you all have been busy in august since you've continued to make progress in completing reform. i think y i thank you and your staffs for your hard work.

we can already see the benefits. we can have an enhachbsed system of regulation for our largest banks and then bank financial companies. we have guarded transparency and oversighted for drivelties. we have a dedicated and kind of watchdog focus on protecting consumers. and we have new ways to monitor threats to financial stability.

>> congress has provided adequate funding for opposed rules have not always been met with open arms. however, through constant oversight, members of this committee has had the opportunity to express their views. each only you and your agencies have been able to use it. going forward, as we can get farther away from the crisis and calls to water down wall street reform, policymakers cannot fx costly regulatory systems can be. our financial system is strongest when we have tough but fair oversight to provide the

love of the field for all financial policies to be served. today, i look forward to hearing from the witnessings, their next steps to complete the remaining wall street reform makers. >> thank you, mr. chairman. dodd-frank requires about 400 new rules to be written and approved by the federal regulators. today, slightly more than 50% of these rules have been full-timized afull-time

i finalized and the remaining 25% are still in the making state. we still have no idea what the cumulative cost of dodd-frank is or will be. the vulker rule and the conflict minerals rule, alone, will add approximately 4.6 million paperwork burden hours and over $1 billion for services of outside professionals according to the paperwork's own reduction act estimates. and that is just two of the 420 rules finalized. we cannot pretend that these additional costs are not passed onto consumers. without a cumulative analysis, we cannot understand their overall impact on the regulated entities, consumers and the markets. for example, what i hear back in idaho, regulatory demands are trickling down.

out of concern, financial costs are kept aside rather than investing it in local communities. regarding the latter, 2 senate passed unanimous consent to bank like capital requirements. i look forward to hearing from the witnesses what specific fixes should be made so that traditional banking services do not become so complicated or expensive that banks like those in idaho and other rural communities can no longer offer such services.

i appreciate that so much of your agencies have commenced the statutorily mandated review of regulations to identify burdensome regulations. i encourage the remaining agencies to join this empt. and to provide a list of recommendations to congress. in addition to dodd-frank, the law also established the financial oversight council. i reiterated my concerns about the lack of stocks designation process.

the u.s. financial system cannot remain the preferred destination for investors throughout the world if our regulators operate under a cloak of secrecy. this is not how our regulatory framework should operate. i urge you to impose a moratorium for increased transparency.

only then can we restore accountability. all of your agencies should recognize the benefit in having an open and transparent regulatory process. transparency does not weaken regulatory roles. mr. chairman, the issues we're discussing today are very important. >> thank you, senator. this morn iing, opening statemes will be limited. i want to remind my colleagues that the record will be open for the next seven days if there are any other materials he would like to submit. now,i would like to introduce our witnesses. daniel turrillo is a member of

the federal reserve system. martin wurenburg. tom curry. tim is chairman of the commodity features trading commission. tim, welcome back to the committee. i thank you all for being here today. i would like to ask the witnesses to please keep your remarks to five minutes. your full written statements will be included in the hearing record. governor,you may begin your testimony grchlt thank you, mr. chairman and senator and other

members of the committee. senator johnson, i understand that this may be the last time that this group of six appears before you in your time as chairman of the committee. i want to thank you for your patience and courtesy. i think it's something that we all have aappreciated and we obviously will miss your presence on this committee. in appearing before this committee in february, i noted my hope and expectation that this year would be the beginning of the end of our implementation of the major provisions of the dodd-frank act. seven years later, we are on

track to fulfill that expectation. to be clear though, this is the beginning of the end, not the end itself. the agency still has some work to do on adocumenting regulations specifically required by dodd-frank. moreover, the fed has some additional work to do in filling out a regime for systemically important financial firms. let me mention here two priorities. first, we would be proposing capital surcharges for the eight u.s. bank that is have been identified. by increasing the levels, the amount of common equity required to be held by these firms, we look to improve their resiliency to take account of the impact their failure would have on the financial system. while we will use the framework developed by the basil committee, we will strengthen that framework in two respects. first, the surcharge levels for the u.s. institutions will

extend higher than basil committee range which will mean higher applicable surcharges for most u.s. if i recalls. noticeably so in some cases. second, the surcharge formula will directly take into account the reliance on short term, wholesale funding k4 we believe to be a very important indicator because of the potential for con teenagen under stress. some have required higher surcharges, none has explicitly taken account of short term, wholesale funding vulnerableties.

the presence of such long term, unsecured debt should reduce risk by clarifying the position of other creditors in an orderly liquidation or bankrupt process. you will note i mention short term, wholesale funding a couple times. while there's more to be done with respect to vulnerable wholesale funding markets, i

would close by suggesting it may be time to consider raising some thresholds the application of some dodd-frank positions to other banks. the three banking agencies before you today have all been working on ways to reduce regulatory or supervisory burdens on smaller or mid size banks. a second would be to kpempl banks entirely which are really both directed at practice ins larger institutions. thank you for your attention. i'd be pleased to answer any questions you may have.

>> thank you, chair moon and members of the committee. i'd like to begin by thanking chairman johnson for his strong, personal support and encouraged me both during my service on the staff of this committee as well as since i've been at the f.d.i.c. i am very grateful. >>. the final rule on the liquidity ratio and derivatives address three key areas of systemic risk that, taken

together, are an important step forward in addressing the risks posed by the largest financial institutions. in april of this year, the banking agencies finalized achb enhanced supplemental leverage ratio final rule for the eighth largest and most systemically important holding companies and their insured banks. just last week, a joint interagency final rule implementing a liquidity coverage ratio.

many banks had insufficient liquid assets and could not borrow to meet their liquidity needs, which greatly exacerbated the depth of the crisis. and finally, establishing margin requirements for over-the-counter derivatives is one of the most important reforms of the dodd-frank act. before the crisis, some institutions entered into large positions without the prudent exchange of collateral.#w>ó4odz

margin requirements should promote financial stability. on august 5th, the agencies issued letters to each of these firms detailing 2 specific shortcomings of each firm's plan and the requirements for the 2015 submission. the failure to make or identify to enhance the prospects for orderly resolution.

ensuring continuity of critical operations do you recallings bankruptcy and demonstrating operational capableties to produce reliable nfrgs in a timely manner. the agencies are also committed to finding an appropriate balance between transparency and confident shlgty for proprietary and supervisory information in the resolution plans. finally, in his rule as supervisor, the f.d.i.c. has been in a sustained effort to better institutional banks.

since the beginning of this year, the efforts to provide essential banking services in the communities they serve. mr. chairman, that concludes my remarks. i'd be glad to respond to your question. >> thank you. please proceed. i am pleased to appear here today to further enhance the effectiveness of our bank supervision and to provide a status report on the completed projects. like my colleagues, i, too,

however, would like to first thank congressman johnson. when congressman johnson had something to say, it was worth listening to. i wish you well in your retirement. in the four years since passage of the dodd-frank act, new tools have been developed and new rules have been put in place to address regulatory gaps and to create a stronger financial system. for our part, we at the occ have completed all of the dodd-frank rule makings for which we have soul responsibility. for those interagency that needs to completed, i anticipate finalizing many of them in the near term. since the crisis, we have also seen steady improvements of the banking system.

despite the improving strength and hemt of banks, however, i am keenly aware of the need for supervisors to remain vigilant. these hiegtsenned standards of a more robust audit and a compensation structure that does not encourage inappropriate risk taking. consistent with the heightened

standards we are requiring of the largest banks, we are holding ourselves accountable to supervisory improvements, as well. last year, i asked a team of international regulators to provide a broad, candid and independent assessmented of our supervision of mid sized and large banks. the occ has embraced the team's findings and taken steps to execute regulations that include improvements. one key improvement includes expanding our lead expert program swhich will allow us to better prepare the of rations of the institutions we regulate to identify trends best practices and weaknesses.

those reports identify those risk areas where we will focus our resources. while the occ has taken many steps to improve our supervision of large banks, we also recognize the impact of our activities on community bavngs. while we are focused, we are always mindful of the need to avoid unnecessary burden on community banks. in each rule making, the occ has sought and listened to the concerns of community banks. and, as an example, the lending limits rule provides a similar option for small banks to use for measuring credit exposures. and the final domestic capital rules address the con sirns of small banks with respect to the treatment of trucks, accumulated

comprehensive income and residential mortgages. my written statement includes a full status report on the many dodd-frank act rule makings the occ has been involved in in our efforts to better coordinate with international regulators. my statement concludes with an up date of our activities to sure up the industry against cyber threat which is i regard as one of the most significant issues facing the industry. thank you again and i'd be happy to answer the committee's questions. >> thank you. >> thank you for the opportunity to testify today.

your obvious commitment set a bureau and your personal kindness and your family in welcoming me to south dakota and having me here from your contism wents about these issues and your personal kindness in particular in advising me that if i pronounced the state capital as pierre rather than çzto>c

timely. last fall, we issuedç[ another rule long urged in the congress which was to consolidate under various laws. >> as we the redesign, we believe it presents an opportunity to produce unwarranted, regulatory burdens. as each of these proceeds, we're working diligently to make clarifications and adjustments to our rules where waurnted.

we're also addressing pressing issues 234 nin non-mortgage eff and a series of larger par tis pant rules. another key task has been to ensure compliance for customers with federal loss. >> we've made it a priority with our federal and state regulatory partners. our supervision programs is helping to drive cultural change that places more emphasis on

treating customers fairly. to date, our enforcement hormed by illegal practices. with officials in 49 states, we took action against the nation's largest non-bank mort gang servicing loan processor. and we took action against two of the nation's largest payday

lenders for various violations of the law, including the military lending act. the core of our mission is to stand on the side of consumers. we've now handled

>> thank you for inviting me to testify. i'm a newcomer but i certainly want to add my admiration for you, and your support, really, for all of our efts. so thank you very much. as you know, the dodd-frank gave is tec some significant progress implementing our con gregsly mandated rule making agenda. maintaining fair and efficient marktss sch has included a

review to enhance the quality of our equity and fixed income markets. since i became chair in april of last year, we focused on eight key areas of sec responsenty mandated by the dodd-frank act. specifically, the commission has, to date, created a framework for advisors, advanced significant clearing centers that stand at the center of our financial system.

these rules were adocumented on august testimony h 27th. completed reforms in july, a systemic vulnerability. push forward new rules to begin disclosure, put in blas strong, new controls on breeker dealers that hold customer assets, reduce reliance on credit ratings. since april 20, 13 u the sec has proposed or adocumented nearly 20 significant rules and, thus far, has proposed to rent about pnt to all of the commissions of the dodd-frank act.

our focus now is on tightsle vii and executive rules required by dodd-frank. we have worked closely with our fellow financial regulators to ensure that our financial regulatory system works overall: the financial oversighted committee serves a significant role. more remains to be done.

stand the test of time under intense scrutiny and rapidly changing economics. thank you again for the opportunity to testify today. i would be hatch pill to answer any questions. >> thank you. chairman, please, proceed. >> thank you, chairman johnson. i'm pleased to testify before you today on behalf of the commission. while this is my first aid peerns as the ftc chair, i want to add my thanks to you, particularly with my respected to the prior rote of the program, it was very unforchew gna

gnat of course, that we had to implement it. i would like to renew our progress. we must never forget that this has lost millions of dollars, many businesses shuddered and many retirements u college educations deferred. that is why business development is so important. transparent trading and regular reporting for increased markt transparency.

the cftc has made substantial progress. >> standardized swaps must be cliered. in december, 2007, only 16% of outstanding transactions were cleared. last month, 60% were cleared. last month, an estimated 85% of index credit default swaps were cleared.

there are currently 22 approved swap data places. all swaps must be reported. and in getting us where we are today, no group deserves more credit than the hard-working staff and agency. i want to publicly thank them for their contributions. but much work needs to be done. to that end, i've scheduled a

p public meeting on september 17th where we will consider a rule governing special entities. second for reforms to succeed. globalized rules as much as possible. i've been focused on this effort since the day i took officer. third, we must make sure that market par tis pants comply with the rules. strong enforcemented efforts are vital. this is critical to effective

market oversight. while the agency staff is excellent and we will do all we can with what we have, i believe the kurnts financial resources are insufficient to fulfill our increased responsibleties: i hope to work with congress to address this news. >> my first question is for each of the panelists. what reform rules will be finalized by the end of the year for your agency?

for example, should we expected a financial retention rule or a rule on long term debt governor, let's begin with you and go down the line. >> senator, i would expect that we'll finalize the financial sector concentration rule with respect to risk retention, i don't know if i'd say by the end of the year, but we're definitely in the home stretch. >> mr. chairman, i think the agencies have been working hard on the risk retention approval. and i think we're the end game. and i would hope, without making predictions, you could do that by the end of the year.

i, too, would hope to complete the risk retention rule by the end of the year. the occ is certainly committed to devoting the appropriate resources to get a job done. and i hope to be able to work cooperative cooperatively with both agencies, as well. >> mr. chairman, we've taken interest in it as it overlaps our qualified mortgage rule to some significant degree. we kobt to work on the itch leaptation and the mortgage implementation, generally u will have larger rules to allow us to supervise other financial markets before the end of the year. >> with respect to dodd-frank, we expect to focus on title 7

and they'll be finished by year end. and focusing on those, i do expect to work with our fellow regulator ins completing the credit risk retention rule. >> mr. chairman, we're not part of the risk retention rule, but we will. as i noted the rule for special entities next week, which addresses some of the smaller end user concerns. most of our rules are done, so, again, we're very focused on looking at them and making sure we've addressed some of the end-user concerns. >> thank you.

your staff has indicated that the fed has taken a two-track approach with capital rules for insurance companies including one approach the fed could use if congress and next bunch of legislations that the budget passed in a minute, pleasely months ago to provide the fed with more folks availability to fail lor rules or insurance companies. is it important for congress to enact laws soon. senator, it would be very welcomed with our unique two insurance companies. we'll continue with our two tracks of planningmented we're going to conduct a kwaunt tative impact study. to develop more information on

the spefblgt pruktss but it would be very helpful. the largest bank and organizations which you have given each of the organizations until july 12 of 2015 too submit a resolution program that addresses the shortcomings. what will your agency be doing in the next year to monitor these banks and efforts to address their living will sho shortcomings. >> well, mr. chairman, as i indicated in my opening statement, we've, in effect, now given each of the 11 firms a detailed road map of changes nay

need to make. the f.d.i.c. reserve works jointly on these letters to follow through on compliance and implementation of the directions contained in those 11 letters. thank you, mr. chairman. i'm focusing in this question on the economic growth and regulatory paperwork redwux act. kwh as you know has requirements for reviews. and it was actually this act that we used some years back to pass a significant regulatory

relief act. i tuns the federal reserve, the f. dichlt c. and the o.c.c. are already going well under way and going down the road of doing this. so my first question is to the three of you. and specifically, we're focused on community banks. >> mr. chairman, i'm currently the chairman of the f.i.i.c. and i think our objectives are totally in tune with your objectives. the focus on unnecessary rules are community banks. we also need to make sure that we get adequate input from

community directors. ultimately, we do intend to do two things. one that we make changes to have complete control over regulation and policy statements. and, also, to file a report with congress on which we will make appropriate changes for statutory changes. identify identify opportunities for any statutory change. i think this has been a focus of the tension priority, certainly for our three agencies, as the controller indicated. we are planning a series of

public hearings around the country. i think we'll be participating directly in some of those hearings and i review it as a good tuchblt to take a view of this. >> thank you very much. to the other three, the timing is not necessarily kicking in at the same time frame for the cfpb. and the cftc and sec are not technically under the law. but my question to the three of you is, regardless of that, will you pursue the same process and help to provide us with your evaluation of the kind of burdensome regulations. >> i'm part of the ffiec we're following as the comptroller

indicated has laid on review. we have our own statutory provision that the rules promulgates. we've been actively looking at the mortgage rules to see if there are tweaks that we needed as we go and we've made a number of those to assist cliens. we had our own strep lining initiative which congress ultimately resolved. >> i don't think the statute applies to us, but i'm very committed to see constant contact with those who our rums impact. we don't gemly have as much impakts on community barngs.

we're reviewing the rules as they come out the door. >> thank you. we've got the be real fast because i i've got to get one more question in here. >> certainly. we agree with the goal, senator and have to work with your under the influence on that. >> thaum 678 governor rjs in your testimony and the speech of the federal reserve bark i'd like you to exband on your thinking. i agree with you very strompkly and home we can make progress in this area. >> senator, we've had the benefit now of several years testing under dodd-frank and amgs our seat car requirements a assessment process. we've just concluded that given

the testing we didn't think that the ben fit of that are sub stan rnl enough to warrant 2 kinds of exbendtures of including the larger institutions have to extepid. their bans sheets are pretty easily investigated by us. and their lending falls in a fairly discreet numb br of forms. we just thought va having our speempbs butt us in a better pogts. >> thaurng. i think your observation is very well take p. we need to find places where we

can resolve these unnecessary burdens. now, as we speak, holding leaders across the country. importantly, finalized last week by the fdr thrks. by excludeing liquid assets, freg regular day xxs have won the risk of limiting the stoep of financial stunss fa take on securities which we know are life blood of development in this could be tri. my city and state, new york city and staid rely on this to start construction in new skis.

investment grade municipal bonds are not only served as the mechanism to create jobs, but the security service high-quality assets that adequately recover liquidity out flows in periods of stress. but i've not yet heard a convincing argument why, for instance, corporate debt can be considered a high-quality asset. investment bonds have comparable if not better price volatility and they performed well through the financial crisis.

>> and this doesn't touch on the fact that the new rule permits foreign sovereign debt to be qualified as hqla while these municipal bonds are not. and the exclus from counting towards lig widty coverage, for banks institutions, has the potential for states an municipalities to both increase the cost of information payments and decreased investment by the largest banking institutions in inf inf infratruck secure. the dead issuances are considered high quality liquid assets by markets. and should be treated as such under the rule. developing criteria to asetsz liquidity and is a more talented

approach. i hope all three agencies will reassess the finalized rule a andish mule supplement toll rule tha that account. staph analysis a is comparable to that of the very liquidity of corporate bonds that can qualify as hqla and indicated the staff has been working on somed ins which might be considered for inclusion. want types of ideas are allowed forrer flexibility. certain bonds could be considered a high-quality liquid assess.

>> thank you, senator. we asked the staph to allow a proposal that would allow reck nigts as those state municipal bonds which are in the same lesion. tlr some differences, but ours said there ought to be a way to liquefy them. we really want parches to take them into account. >> so you want some comeblety

here. >> that's correct. senate store. >> okay. chairman? >> senator, i -- the questions to you is would you consider revising this rule if the analysis shows that the lick willty and interest relates are simple. squl true. if there was reason to make adjust ts, we would consider adjustments. >> we have loets of our mayors and finance directors as well as governments how manying at under the circumstances. >> how about controller curry? >> senator, we're looking to discuss with the fed and additional rezeshlg in this area. if there's a possibility to kal late the stabd a stand article.

certainly looking forward to talk to the fed about it! would you be open to changing from modifying the rule? >> surgeonly based certainly suh or thoughts from the fed. >> what does that mean? would you be open to revising the rule. >> open but need to talk with our colleagues. >> okay. thank you, mr. chairman. i thank you all three of you are open to it and 2005 you seem pretty favorable towards it. i hope you go ahead and do it because it's really important. >> senator corker. >> thank you, mr. chairman. i appreciate it. i appreciate you all being here and the job that you do. back when dodd-frank was being created each of us were assigned certain areas to work on, and our friend mark warner and i worked on title i and ii an your friend changed it a little bit but still pretty good.

and i want to focus on those two areas. actually i think it was some of the strongest pieces of the dodd-frank bill, and i noticed that the fdic and the fed had a joint letter relative to the living wills. i will say in fairness senator warner was far more focused on the living wills and i appreciate his efforts in that regard, but i notice that you had a joint statement and then what happened after that is the fed backed away from that. and wrote something separate from the joint letter that really watered down, if you will, your concern about living wills, which created a concern for me because i know there's a process that gets put in place if both of you agree that they are inadequate and, therefore, by stepping away that has been watered down to a big degree and i'm just curious as to why that took place and both of you might

want to respond to that. >> senator, i did see any watering down of the impact of the letters that we agreed on and jointly sent out. what we jointly agreed on were the measures that we actually want the banks to take in order to become more resolvable which, i think, is the object of this entire exercise. and so far as i could determine there was substantial convergence, certainly the staff and principle levels on those areas where we expect to see progress. there's a question as to whether -- i think the difference was whether the fdic made a determination of noncredibility of the letters that had been submitted already, the feeling of the board was that there are obviously shortcomings that's why we wanted to get these specifics out. but we also thought that it was important to go through another

stage of the process that had been laid out in red and i think it's contemplated by the statute because that is after all the object here is to get us to the point where the firms are resolvable in bankruptcy as well as under title ii and as you will note in our statement, the fed statement and also in the letters, if the firms are not able to take the steps that we have jointly indicated they need to take by next july, the agencies will be prepared to take action under dodd-frank in order to enforce those provisions. and so i think by doing that, by being as specific as we were, i think we should put to rest any complaints that there wasn't enough guidance from the agencies along the way. i think the guidance is out there now and it's quite explicit. >> it does have the effect, does it not, of really slowing

down and putting off the institutions taking the steps they need to take to simplify -- there's a process as you mentioned and i think by doing what the fed did you added a step to that, did you not? >> what we did is we focused on what we want them to change. we made it clear, we want it changed in the next year. i hope there's no slow down here. we're not expecting a slow down. we're expecting a acceleration of them planning and with them to do it with more realistic assumptions than their prior submissions. >> one thing there's been concern about, fsoc has been given tremendous powers to deal with these entities if you feel, in fact, there's any possibility that because of their size or complexity they could create a risk to the system, and i just want to ask the two of you -- we

asked in letter form, several of us, we've gotten back as you might expect some nebulous responses. but will you use the powers given to you if these firms -- if you find themselves after this year's process not to be in place properly resolved in bankruptcy, will you take the measures you have -- many people are trying to pass legislation but you already have powers within the organizations to take steps, force them to be less complex. will you do that? >> sure, senator, i think that's the object profit sees is to try to get them to the point of resolvability. as we indicated we're prepared to use the powers granted in dodd-frank if, in fact, they don't get there. i might also add that the things i mentioned this morning, the higher level of surcharges for

the most systemic important institutions, the attention to the short term wholesale funding vulnerabilities and the requirement for subdebt hats convertible are measures intended in the same direction which is to ensure the resilience and the resolvability of these institutions. >> okay. senator, if i could just add, i think the answer to your question is yes. i think we will be prepared to use the authorities of the statute. i think we've laid down a clear marker, the fed and the fdic for these firms in terms of the kind of changes that need to be made and if i may, i would underscore the agreement between the two agencies on the substance of the letters, which i think was really very solid and meaningful, and i think the firms are clearly on notice that there's an expectation of compliance with the directions in the letters and i think there's a joint commitment by

the two agencies to follow through on that. >> thank you. mr. chairman, i appreciate the time. i will say a big part of the concerns that were expressed during that time and the passage of the bill was about extraordinary actions that we and the american people had to take during that time and unless you, especially the two of you are willing to take the steps that are necessary to ensure that these organizations are not too complex to be resolved through bankruptcy, then all is nor naught. i appreciate your work and thank you for the time and thank you for creating a bipartisan atmosphere on the committee since everybody is thinking you're the chairman of the universe. >> senator menendez. >> thank you. madam chair we have discussed the pay ratio reform law which requires companies to disclose

to ratio of compensation of their chief executive to the pay of median workers. this measure focuses investors attention on the relative value a ceo creates in order to facilitate better checks and balances against insiders paying themselves runaway compensation packages and while ceos undoubtedly can create value for companies so can ordinary workers across an organization. so when a ceo asks for a raise while giving other employees a pay cut, investors should have this information so they can ask whether this is a value creation, or simply value capture by insiders. especially in an environment in which incomes for the top 1% have grown by more than 86% over the last 20 years while incomes for everyone else has grown by less than 7%. as you know from my letters of support i was pleased to see the sec's proposed rule last year to

implement this provision which accurately represents the legislative intent that i and others intend. can you give us an update on the status of this rulemaking and when does the sec expect to finalize it? >> essentially as i think i said in my oral testimony we're focused on dodd-frank mandated rulemakings on title vii. pay ratio is one of those that's been proposed but not adopted. it's certainly a priority completed this year. >> so, it's your expectation that you would complete it this year? >> it's my hope and expectation to complete it this year. staff is still going through the comments that were extensive in formulating a formal recommendation. >> i hope there will be more expectation and less hope. now, let me turn to chairman white. this summer the sec received its

record, 1 million public comments supporting a rule to require public issuer companies to disclose their political campaign spending to investors. supporters include leading academics in the field of corporate governance, vanguard founder, investment managers and advisors and the investing public. without disclosure corporate insiders may be spending company funds to support candidate or causes that are directly adverse to shareholders' interest. without shareholders having any knowledge of it. the amounts being spent may be small. or large. but shareholders have no way of knowing. even where the amounts are small relative to the overall size of the company, the impact of an election and therefore on shareholders can still be very large. if corporate political spend cigarette material to investors as the leading experts in the field and over 1 millione