the speaker pro tempore: for what purpose does the gentleman from pennsylvania rise? >> i ask unanimous consent that the gentleman from south carolina, mr. spratt, be permitted to insert -- insert material into the record. the speaker pro tempore: without objection, so ordered. for what purpose does the gentleman from pennsylvania rise? mr. altmire: i move the house do now adjourn. the speaker pro tempore: the question son the motion to question son the motion to adjourn.

attorney general eric holder testified about a variety of issues facing the justice department including guantanamo bay detainees. the radio and television correspondents association holds its annual dinner friday with president obama scheduled to speak. live coverage at 9:45 p.m. eastern time. >> people do not want to think of roosevelts work dealing with conservation.

from the grand canyon to devil's tower. he was on a mission to save the west. >> now people are talking about the grain movement, roosevelt is becoming the chief figure. he was the only politician of his day who understood biology and bird migratory patterns. the mating habits of deer and elk and antelope and actually did something. >> sunday on "q&a" we will be speaking with douglas brinkley. that is sunday at 8:00 p.m. eastern. >> president obama has announced a number of changes to the financial regulatory system. the system -- the plan would dismantle large financial companies and for the first time into was regulations on

certain types of transactions. this is 20 minutes. >> i administration has an extraordinary response to a historic economic crisis. we have taken action to repair our economy and working hard to build a new foundation for sustained economic growth. this will not be easy. this recession is not the result of one failure but many. many of the toughest challenges we face are the product of a cascade of mistakes and missed opportunities which took place of the course of decades. that is why we are seeking to

build an energy economy that creates new jobs and lessen our dependence on foreign oil. we want to foster an education system that instilled in each generation certain ideas of innovation. as i discussed on monday with the american medical association, we want to reform our health-care system so we can remain healthy and competitive. this new foundation also requires strong, vibrant financial markets. they must operate under transparent, fairly administered rules of the road that protect american consumers and our economy and the devastating breakdown that we have witnessed in recent years. it is an indisputable fact that one of the most significant contributors to our economic downturn was an unraveling of major financial institutions and

the lack of adequate regulatory structures to prevent abuse and access. a culture of irresponsibility took root from wall street to washington to main street. regulatory regimes drafted in the wake of a 20th-century economic crisis, the great depression, which overwhelmed by the speed, scope, and sophistication of the 21st century global economy. in recent years, financial innovators seeking an edge in the marketplace produced a huge variety of new and complex financial instruments. these products such as asset based securities were designed to spread risks but ended up concentrating risks. loans were sold to banks which packaged them into securities. investors bought these securities with little insight into the risks to which they were exposed. it was easy money while it

lasted. these schemes were built on a pile of sand. as the appetite for these products group, lenders lowered standards to attract new borrowers. many americans bought home without being adequately informed of the terms and often without accepting the responsibilities. executives compensation were awarded with a recklessness rather than responsibility. this was not as the failure of individuals but of the entire system. the actions of many firms escaped regulation. few inside or outside of these companies understood what was happening. regulators lack the authority to take action. regulators lacked the accountability for their

inaction. in absence of oversight engendered systematic and systemic abuse. instead of reducing risk, the markets magnified risks. there were being taken by ordinary families and large firms alike. there was too much debt and not enough capital in the system. the growing economy bred complacency. we all know the result. the worst thing a bay bubble and the sudden decline in available credit and the deterioration of the economy, the unprecedented intervention of the federal government to stabilize the financial markets and prevent a wider collapse, and most importantly, the terrible pain in the lives of ordinary americans. there are retirees who have lost much of their life savings. families devastated by job loss. small businesses forced to shut

their doors. millions of americans have worked hard and behaved responsibly have seen the light streams eroded by the irresponsibility of others and by the failure of their government to provide adequate oversight. our entire economy has been undermined by that failure. the question is what do we do now? we did not choose how this crisis began, but we do have a choice in the legacy this crisis leaves behind. my administration is proposing a sweeping overhaul of the financial regulatory system. a transformation on a scale not seen since the reforms that followed the great depression. these proposals reflect intensive consultation with leaders from congress, including those who are here today. chairman dodd and frank along with senator shelby and rep backus will be meeting with me

throughout this process. they met with p earlier this year to jump-start the discussion of reform. -- they met with me earlier this year to jump-start the discussion of reform. i have met with regulators this morning. consumer advocates and business leaders, academic experts, and the broader public. in these efforts, we seek a careful balance. i have always been a strong believer in power of the free market. it has been and will remain the engine of america's progress, the source of prosperity that is unrivaled in history. i believe the jobs of best created not by government but by businesses and on to revenuers who are willing to take a risk on a good idea. -- on contra been a worse -- on entrepreneurs who are willing to take a risk on a good idea.

we want to restore market in which we reward hard work, responsibility, and innovation, not recklessness and greed. honest and vigorous competition is in the system, and to those who gain into the system are awarded. we say to put in place rules that will allow our markets to promote innovation while discouraging abuse. we seek to create a framework in which markets can function freely and fairly without the fragility in which normal business cycles suddenly bring the risk of financial collapse. we want a system that works for businesses and consumers. there are those who say that we do not go far enough. that we should have scrapped the system altogether and started over again. i think that would be a mistake. instead we crafted reforms that pinpointed the structural

weaknesses that allow for this crisis and to make sure these problems are dealt with so that we are preventing crises in the future. there are also those whose debris are going to go far -- there are those who say we are going too far. the absence of a working good regime over the system as a whole lead us to mir catastrophe. we should not forget that. we do not want to stifle innovation. i am convinced by setting out clear rules of the road and ensuring transparency and fair dealing, we will promote a more vibrant market. this principle is at the heart of the changes we are proposing. that we list them for you. we are proposing a set of reforms to require regulators to look not only at the safety and soundness of individual institutions but also at the

stability of the financial system as a whole. one of the reasons this crisis took place is that while many agencies and regulators are responsible for overseeing individual financial firms and subsidiaries, and no one was responsible for protecting the whole system from the kinds of risks the tide these firms to one another. regulators were charged with seeing the trees but not the porous. some proposed a systemic -- trees but not the forest. some of the cape as banks by were chosen to be regulated like other entities. one firm threatened the viability of others. there was no system in place prepared for this outcome no one was charged with preventing it. we were facing one of the largest financial crises in

history and those responsible for oversight were caught off guard and not have the authority needed to address the problem. it is time for that to change. i am proposing that the federal reserve be granted new authority and accountability for regulating bank holding companies and other large firms to propose a large risk to the entire economy. we will also raise the standard to which these firms are held. if you can pose a greater risk, you have a great responsibility. we will require these firms to reach stronger capital and liquidity requirements so they are more resilience and less likely to fail. even as replace the authority to regulate these large firms in the hands of the federal reserve for accountability, we will create an oversight council to bring together regulators from across markets to coordinate and share information, to identify gaps, and tackle issues that did

not fit neatly into an organizational chart. we will bring everyone together to take a broader view and a longer view to solve problems in oversight before they can become a crisis. as part of this effort, we are proposing the creation of a revolutionary of 44 large in a connected financial firms so that -- revolutionary authority for a large interconnected financial firms. if a bank fails, we have a process through the fdic that protect depositors and maintains confidence in the banking system. this was created and the great depression when the failure of one bank threatened acquired -- wider turmoil. it works. we do not have a system in place

to contain the failure of a place like aig or the largest most in a connected financial firms in our country. -- interconnected financial firms in our country. companies employing tens of thousands of people and holding trillions of dollars in assets took place in emergency meetings during the night. that is why we had to rely on taxpayer dollars. we should not be forced to choose between allowing a company to fall into a rapid and chaotic dissolution or to support a company with taxpayer money. that is an unacceptable choice. there is too much at stake. we are going to change it. second, we are proposing a new and powerful agency charged with one job, looking out for ordinary consumers. this is essential. this crisis was not a result of decisions made by the mightiest of financial firms. it was a result of decisions

made by ordinary americans to open credit cards, take out home loans and other financial obligations. we know there were many good account loans they knew they could not afford it, but there were also millions of americans whose side contracts they did not always understand offered by lenders. people sign up for mortgages and student loans and credit cards today and face a bewildering a way of incomprehensible items. companies compete by out -- by offering more complicated products with complicated terms. this new agency will change that. it will build upon credit card reforms i signed into law a few weeks ago. this agency will have the power to set standards so companies compete by offering innovative products that consumers want and understand. consumers will be provided information that is simple,

transparent, and accurate. there will be able to compare products to see what works best for you. the most unfair practices will be banned. those ridiculous contracts with pages of fine print that no one can bigger out, those things will be a thing of the past. -- that no one can figure out, those things will be a thing of the past. we will set new rules for home mortgage lending so the bad practices that led to the home mortgage crisis will be stamped out. mortgage brokers will be held to higher standards. mortgages that high? -- mortgages that hide increasing costs will be done away with. we will level the playing field so that all banks will be held to the same standards when offering home loans.

the mission of this new agency must be reflected in the work we do throughout the government. there are other agencies like the federal trade commission charged with tracking consumers. they must get the resources and the tools they need to stop unfair practices. third, we are proposing a series of changes designed to promote free and fair markets by closing gas and all for less in our regulatory system, including gaps that exist between nations. we have seen the structural deficiencies allowed some companies to shop for the regulator of their choice and others like hedge funds to operate outside the regulatory system altogether. we've seen that element of financial institutions like many derivatives that are still complex which to fight efforts to assess the actual values. we a cynicism that allows

lenders to profit by offering items -- we have seen lenders profit by offering items to borrowers who they know can never repay the money. we want to close loopholes that have allowed important institutions to cherry pick among banking rules. we will offer only one federal banking chart regulated by a strengthened federal supervisor. we will wait capital requirements for all depository institutions. hedge fund advisers will be required to register. we are proposing comprehensive regulation of credit about swaps and other derivatives -- credit default swaps and other derivatives. the lender and not just the holder of the security has an interest in ensuring that a loan is paid back. by using common sense rules,

these financial instruments can play a constructive rather destructive role. over the past 10 a decade, we have seen cycles of boom and bust. in each case, millions of people have had their lives disrupted by developments in the financial system in our recent crisis. these are not just numbers. this is a child chance to get an education and a family's ability to stay in their homes and pay their bills. this will help seniors retire with dignity and respect. these are american dreams. we should not accept a system that consistently puts them in danger. financial institutions have an obligation to manage risks carefully. as president i have the responsibility to ensure that the financial system works for the economy as a whole. there has always been a tension

between those who place more trust in the guiding hand of the government and in the marketplace. it gives rise to help the debate and create a dinah's some -- a dina is some -- a dynamism. in many ways our financial system reflects s. the economic, as independent decisions, we see the potential for creativity and for abuse. we see the capacity for innovation to make our economy stronger and for innovation to exploit our economy's weaknesses. we are called upon to put in place those reforms that allow our best qualities to flourish while keeping those worst traits in check. we are called upon to recognize the free market as the most powerful generative force for our prosperity. it is not a free license to

ignore the consequences of our actions. this is a difficult time for our nation. from this time of challenge, we will pass those ideals and values that have allowed us to lead the global economy and will allow us to lead once again. we will sell more americans leave -- live their own dreams. these reforms are some important for this reason. i look forward to working with leaders of congress and all of you to see these proposals put to work so we can overcome this crisis and build a lasting foundation for prosperity. thank you. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2009] [applause]

>> reaction to the president's announcement on financial regulation came from house financial services committee chairman barney frank and banking committee chairman chris dodd. this is 15 minutes. >> i am optimistic the we will have a product that the president wants by the end of the year. i think the fundamental purpose the president is seeking to accomplish is providing a bill that he can get signed by the end of the year. >> i agree with what he just

said. the president has laid out a set of sweeping reforms for the financial regulatory process. they are needed. i like how the -- how he explained it and how he wants to close some of the gaps that led to the problems we have seen today. we do not always have the easiest path to walk to make sure we have a system that has confidence and soundness and safety. while at the same time, encouraging the kind of ideas that have led to the hallmark of our financial sector. i think chairman frank and i agree and a lot of conversations with our colleagues that they are excited about working on this. i see very little ideological --

we have had extensive conversations. we are very anxious to work on this together to put a joint effort for a joint bill. there will be some debate about how we achieve these results, but i think we are all seeking the same result. to that extent, i welcome the president's remarks this morning and look forward to working with them. we are working at it. there are other matters that are dominating the senate right now, that we are working already on drafting ideas and proposals in consultation with the barn and the white house on the very bill that the president outlined this morning. >> [inaudible] >> we will have it done this year. >> we regard this as very pro-

market. there are investors who do not want to invest which is not good for the economy. there are some financial institutions who want to cut corners. this is an effort to avert the kinds of problems we've had before but also -- we won a market that is pro-market and pro consumers. unless you have investors who are well protected, you do not have a market. >> [inaudible]

some have decided they want the health care bill to come up. i talked with senator kennedy this morning and had a long conversation with him. we are working together. it is going to be a long and difficult process on that issue. simultaneously, the banking committee and its members and staff are working on drafting and putting together a proposal on the financial modernization issue. the senate is not going to consider that until the fall sometime. if we can do both at the same time, we will try. almost half of all my members of the democrat side are members of the finance committee and labor committee. in addition to myself, -- the important point i want to make is that i have instructed my staff about working together to

pull that product together so we will be ready to go this fall. >> we have procedures. we have collaborated on much of legislation on credit cards, mortgage foreclosure. and number of these things can be done by general agreement. we get to a place where there is significant -- if you look at the pattern, it has worked very well. we focus on the institution. we get to a place where it takes contentious forms in society and the number of issues that to be decided must be narrowed some

and in a joint process where the senate and house works on them. look at the when we have done some of the mortgage foreclosure things, you will see a similar process with good results. >> as far as i know he had gone as far as it can legislatively and legally. we have to have more legislative authority. [unintelligible] it is going to be up to the congress to change the law. >> >> i know it is going to be a long pull. we want to go forward. unless you have a product down and