incomprehensible items. companies compete 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 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 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 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 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. 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 dynamism.

in many ways our financial system reflects this. 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 allow us to lead once again. we will see more americans live their own dreams. these reforms are so 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]

question a few moments, the secretary of state clinton meets with an israeli foreign minister. and the president signs a bill extending benefits to same-sex partners of federal employees. >> how is c-span funded? >> i have no clue. >> and be some government grants. >> i would say donations. >> public money. >> how is deceased been funded? 30 years ago, america's cable companies started c-span with no government money. >> the secretary of state clinton met with her israeli counterparts to discuss the middle east peace process. after the meeting, they talked to reporters for 15 minutes --

for 50 minutes. -- 15 minutes. >> our commitment to israel's security will remain a cornerstone of our policy. i am pleased to have that chance to express the personally to te foreign minister. united states has no better ally in the middle east or friend and in israel.

we are looking forward to continue that dialogue in the u.s.-israel strategic dialogue. we exchanged views in the middle east regarding iran. they need to comply with obligations to the security council. we look forward to iran in response to our engagement. we want to bring about a concrete -- a comprehensive peace to israel and the neighbors in the region. they're right to exist in peace and security is undeniable and non-negotiable. hothey should be able to live in

peace and security. arab states must do their part to support the palestinian people as they develop the institutions that will sustain their state. they must recognize israel's legitimacy and in doing so choose progress over a self- defeating focus on the past. the u.s. will never do anything to undermine israel's security. we do not believe that these two objectives are incompatible. we believe they are critical elements of a comprehensive and effort to secure peace. i hope you enjoy your first visit to the united states. i look forward to continuing our

conversation and working with you more on these issues. >> madam secretary, i like to say to you how much the government of israel appreciates your support of israel. we value your friendship greatly. you made many contributions. we thank you for your outstanding commitment to israel and for strengthening the relationship and friendship. we have had a good discussion today discussing global issues. but some secretary, -- my dammam

secretary, i thank you for your efforts. >> thank you. >> the new ambassador was talking about some interesting proposals. can you elaborate on what they may be? does that mean there is some wiggle room that there should be no such settlement activity? can you discuss george bush's private letters to the israeli government's. is that issue over with? >> that is a long question. thank you. that is three questions. first of all, we do not have any

intention to change the demographics in the area. it is in every place [unintelligible] we cannot accept this vision or settlement. the musky the natural growth that the prime minister spoke about in his speech. this position, this approach is very clear. we have some understanding with

the previous administration and we have tried to keep this direction. we are writing for direct talks -- we are ready for direct talks with the palestinians. >> we want to see a stop to the settlement. this is an important and essential part of pursuing a comprehensive peace agreement. there are a number of critical

concerns, many of which overlap in their impact of significance that will be explored in the coming weeks senator mitchell and gauges more deeply into the specifics as to where the israelis and palestinians are willing to go together. i think the whole issue that you have raised is one that we expressed our opinion on. in looking at the history of the bush administration, there were no informal or oral enforceable agreements that have been verified by the official record of the administration and by the personnel in the positions. one person wrote an op-ed that appeared in the last few days that laid out our position on

this. > >> have you edition -- how do you envision any measure of progress? there are conditions that are refused by the palestinians. when you hear it the current israeli government refuses to talk about your demand of freezing the settlement activity. >> i think as one was that israeli history, there have been prime minister is going back to

the beginning of the israelis statehood that have staked out positions which have changed over time. i personally have known such prime minister's who started in one place but in the process of evaluating what was in the best interest of israel -- that has to be the primary obligation of any leader of israel. what is in the best interest of my people and the future of my state. these prime ministers have moved to positions that they never would have thought they could have advocated before they started looking hard and thinking hard about what the future should be. that is what negotiation is for. >> [inaudible] >> i leave that to them to

decide. i am reflecting on history and on people who have been in these positions of the last 40 years. there has been an evolution. i think prime minister netanyahu in recognizing the aspirations of the palestinians for a state of their own in his speech said something that many people were waiting to hear him say. >> [inaudible] >> on iran, the iranians -- can you bring as up-to-date of the protests? there have been reports of criticisms about u.s. interference in iranian affairs. can you comment on that? does the outcome of the iranian alexian change israel's position in any way and will your

discussion -- outcome of the iranian election change israel's position in any way? >> the united states believes strongly in the basic principle -- principle of free expression. we believe that it is a fundamental human right for people to be able to communicate and express their opinions and take positions. this goes back to the founding of our country. we stand firmly behind it. we promote the right for free expression. it is the case that one of the means of expression, the use of torture -- twitter is an

important one. apparently it is very important to especially to young people. keeping those lines of communications open and allow people to share information at a time when there were not many other sources of information is of importance. the right to speak out and be able to organize is a right that we value. >> we support evolution not revolution. we want to work on policy.

at one point every candidate was united. [unintelligible] we hope iran will change their policy. >> by the moving to stop these protests? can we engage diplomatically with iran. -- iran? >> let me first say the people of iran deserve the right to have their voices heard.

the outcome of any religion should reflect the will of the people. the iranians need to determine how they resolve this internal protest concerning the outcome of the recent election. it is a fundamental value that the united states holds with respect to free and fair and credible elections. with regard to engagement, we intend to pursue engagement because we think it is in the interests of the united states and the world community to discuss with the iran government important matters such as the one that the minister raises such as their

intention for the nuclear programs and support of terrorism, there interference with the affairs of their neighbors and other states. we think there is much to talk about. i would think it is a useful exercise to look back on history and to see where countries have engaged in ongoing diplomatic discussions with countries whose regime we disapproved of and that we rejected. whenever stop negotiating with the former soviet union. they invaded countries. they promoted unrest. we knew we had an opportunity to learn more, to discuss fully and to reach better understandings that we might have in the absence of such engagements. we pursued it. we are doing this out of what we view it is our interest.

and the interests of friends and allies such as israel. now we are waiting to see the outcome of the internal iranian process these. our intent is to pursue whatever opportunities might exist in the future with iran to discuss these matters. thank you. >> president obama wednesday announced the extension of some benefits to domestic partners of federal employees.

this new memorandum stops short of full health care coverage. here is the president announcing the changes at the white house. >> many of our government's hard working public servants have long been denied basic rights that their colleagues enjoy for one simple reason. the people they love all of the same sex. currently, some federal employees cannot always use 6 leaves -- sick leave to care for their domestic partners or their children. many are not treated the same way when it comes to the use of visitation rights in case of

emergencies. these are some of the wrongs we intend to write today. in a conversation with the secretary of state, and the director of opm, my administration has completed a long and thorough review that identifies a number of areas where we can extend federal benefits to the same-sex partners of executive branch of government employees. i am requesting that secretary clinton make a possible under existing law. all agencies should conduct reviews to determine where they can do the same. hundreds of fortune 500 companies already offer same-sex benefits because it is the right thing to do and it can help retain the best possible talent. when a top talent serving their country now more than ever.

under current law, we cannot provide a same-sex couples with people went of health-care benefits that is provided to other married couples. we want to make sure that we guarantee these rights for all federal employees. , to take one person for her tireless leadership on this struggle for equality. of what you think senator joe lieberman and susan colleagues for championing this bill in the senate. today marks a historic step towards the changes we seek. we have to acknowledge that this is one step among the steps that we have not yet taken.

i think a marriage act is discriminatory and we will work with congress to overturn it. we have more work to do to ensure that the government treats all citizens equal. we must fight injustice and intolerance in all of its forms and bring about a more perfect union. i am committed to these efforts and a pledge to work tirelessly on behalf of this in the months to come. thank you very much. i will sign this executive order. there you go. [applause]

thank you. >> "washington journal" is next. the houses back in session at 10 eastern for more debate on the spending bill that covers the department of commerce and justice and science programs. .