very often tension leads to sort of the lowest kind of denominator decision making but maybe we're having a race to best practices here. that would be a happy outcome indeed. so i congratulate you for that. and the others, i guess some of the reports of tension have been exaggerated and that's a good thing. reconciling independence and building is important. let me start with you. i want to follow up with something that the senator raised and that's with regard to the new consumer protection entity. . .

. .

>> it is important for the bureau to have the full authorities >> what would be the practical implications? >> i'm not sure what those will be. we are continuing to work those through. there's a lot of work to do between now and then. once the various agencies that will become the euro as of july 21. there will be a lot of room for the bureau to do its work. the president is committed to putting forward a drakt or for the director to consider and confirm. i believe he will be doing that soon

>> it's a call for the president. but it seems to me somewhere, confirm ability is going to be a factor that has to be weighted.

you can just decide to have a fight even if confirm ability is likely. >> i can tell you there will be no aquna in rule making. thinking on the horize yoon, poft transfer. it seems that someone in there having been confirmed.

only congress could come up with a situation like this that you have to give your implementations bhu there's a nine month study period. when wha implications will this have? >> there's a study which the council has to complete by the first. it will be considerable time after that until any of these rules are in place.

there's a two-year conformance period. i don't think that this will be any situation where rule also be put in mace and then it was rescinded. >> manufacture us understood there was a risk here. we were taking a ready fire approach. we wanted to make sure all of you sat down and we would ultimately put into place that mechanism. that was the heart of my question to make sure whatever we were doing was informed by the analysis. it may have lead to a different result if we knew about it beforehand.

>> yes, we need to make sure we are adhering to the letter in spirit. i think the legislative history is important. >> thank you. >> i wouldn't expect any of you to come up here and say, no, we haven't been paying attention. i do think it's important thaws look at when was said, give it fair consideration and give it consideration. thdz some in this area that i

would recommend. my last question if i can go over a minute. >> senator, you are a friend. it's great to see you. i'm grateful for your looerdship. these are some who technical. what is your view on whether regulators have margin al requirements on the users? >> i thank you for that compliment. the dodd frank act does say to lower risk of the swap dealers and the financial system in its whole that regulators would have

the authority to cap margin this is a letter where congress has spoken clearly. we are all taking that together. as i understand the intent. the none financial users are out of clearing. as chairman dodd put out of his letter, the margin requirement. we are taking the intent of congress that the financial system about 90% of the transactions are about financials and financials. >> i discussed the importance of

dmroeb al standards to prevent form shopping. you have taken their approach. you are now going to lock at what we are doing. what kind of effort will it take to harmonize these things. what implications will kra have on our competitiveness. >> after three days overseas, i am very optimistic. aligning early. financial companies would have toous the clearing house.

i encourage you to keep an eye out we are taking it to heart. congress has left us to discretion, we want to harmonizing where we think the europeans will end up with this

we need to be realistic to that are you, are they moving sufficientish enterally. there is now a larger focus on the common equity as the source. there's a very rye stricted use of other assets. we limited some type of capital.

we had made substantial process we all worked together in the agreement. >> chairman dodd with you as well. >> the fact that we moved with this legislation, was that helpful on many of these issues. there's great interest in what

we've done throughout world. it has been well received. jo i'm not going to schmidt a lot of questions because you have work to do. a couple of things come to mind. i'm going to give you a chance to jump in. he got down as far as you. in doing so, title three of your bill transfers the safety and soundness personal property and funds. the fdic and the fed. let me say that i have great respect and admin operation operation. this is awkward and difficult. it's important that this be done well and that people be treated

with a lot of respkt and understanding. i wonder if you might give me a quick answer. we are working hard at it they are meeting this afternoon in new york to talk about how we are going to integrate staff and functions together. efforts being made to ensure that we mind the right places and fit for people at ots in the agency. they clearly have skills and ooblts we need. there's going to be about 50

instances. we cannot do that without the talent and contribution of staff. we are working hard to encourage them to look to a career in the combined agency. it would be bad to have them go elsewhere. >> i'm going to ask to you keep the banking staff informed. >> right. we have to report to congress at the and of six months. there is always some tension in the process if it hasn't gotten

up and started. at risk in my view until we get

someone running in place. believe me we'll have people out to get rid of it. let me ask if i can as you headline this morning in the "washington post" we had problems with ali, formerly gmac. i con dprt late jp morgan this morning. i know it is not exactly the subject matter here

>> i think it is troubling. a further indication of how wrong we went with the morgan original nation process which was deeply tied to some of the break down in terms of tight al. it is troubling. it under scores going forward that we need to be careful. we want gsc exit strategy. it is just another indication of tomb things went wrong in the process leading up to this crisis.

we think that we've been long-time proponents where it tries to work the foreclosure. we continue to push and advocate that in various venues. >> obviously when efforts emerges of deficiencies in the process, these individual cases, we went to talk to people at jp morgan chase and other dealers where we are dealing and instructing them to go back ramping up and processing with mortgage modifications that we

were all hopeful to increase and ask them to go back and look. there are state laws that require specific requirements and review of those cases. we both want to see whether they fixed the processing problems or whether it has fixed the harm. any evidence of harm to consumers. >> any comments on this? >> only that it has been a challenge to the banks to deal with meez foreclosure modifications. we continue to ramp up and respond quickly to the bore

oreers and the like. >> that was in the holding company. the institution was not involved in the mortgage activity. it was not in the bank. >> this is one of these areas that i'm sure the committee will want to be informed. were not in session as these stories are breaking. with that, i thank all of you. i'm very impressed by the amount of work being done. there's the time and issues have to could to grapple with. you and all your staff are working hard. i'm grateful to all of you being here this morning and sharing your tchl with each other. we are going to have i couple of

hearings in the lame duck sessions. i thank you all for your service and contribution to this effort. the meeting will stand adjourned. flu

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>> rules are meant to make financial regulation more transparent. the council was created by the dodd-frank campaign. this is half n hour. >> we've done a good work and

good beginning. continuing in that spirit, we have a very strong set of new laws the soours of the world have come together to create a very effective use with the strong hand of dodd-frank we all

know why we are here. part of the problem was basic failures in our oversight regime. where we are rules, they were not effective in taking consumers. we had large parts to operate outside those rules. when the crisis dpan, we were left with adequate rules.

this law and council creates a careful balance. it is designed to affect independent agencies and to introdu introduce. we are going to try hard to make sure these schools ahead of us will make sure it is done carefully and quickly. we want to make sure as we come

to new rules, we take the opportunity to utilize i am looking for my order of protocol there is a clear commitment of capital deteching dpaps in the

system. we all have our interest and skills. this will allow us to pool what else is happening in the system. this will be an incentive to the future. jo i will thank you for your property standing up of the financial authority of the idea of the council. they really listened to all of

us and we appreciate the effort of you and your staff. we coordinate together in the administration i'm pleased to be attending this first meeting. >> thank you for your leadership. i think it really is important to ensure the protection of the

american public. 2008, the financial system failed. we all bring the result of failures. unemployment is still far too high. the financial system should be in place where investors can get a return on their money. the financial system should be in place to allow people to

health their risk wifr are one of the industries has gotten concentrated. adding to this challenge, many have come to believe as we once did in 2008. it is likely something like this will fail. these institutions are free to

fail. they are key decisions to council with important organizations and like inn many other things we will do. the most important thing is to make sure the system doesn't work with the american public and doesn't bare risk. thank you. this is an important mile stone. i congradulate you and the treasury. the stablt over sight council is tasked with identifying dpaps and monitoring risks i will

address the role of too big to fail. the risk reporting by private investment firms clearly, we have a lot to do in the weeks ahead and month $ahead as well. i look forward to all my colleagues as we get it all done. >> thank you. acting control of the currency general. >> thank you for driving this process forfeited to stand up this new oversight council.

this provides market over sight among a number of agencies and bureaus each working over the years to monitor and control risk. the crisis demonstrated the limits of that approach. bed no effective mechanism. no solid basis for the credential response. the financial stablt oversight council will make sure the risks that seem to be limited aren't minus dpriting or cons traded elsewhere.

it is a pleasure and honor to be hoer and get us started so quickly. many of us have been working quite hard now to system ties the cooperation that has been ongoing. i look forward to that and to the benefit that all of us should get from the system co-lab operation we experience the risk responsible and how that risk can move among them i

am pleased by the good will and cop operation that has been freed up in preparing for today's meeting. thank you. >> thank you. i'm honored to serve on the council.

i'm pleased to say as of last friday, revealing a resolution plan. our guiding principles will occur at the top cost. >> in and of itself to provide a vital tool to protect tens of millions of deepers

>> banking supervisors across the nation have played an important role. we oversee the fdic insurance the institutions and other providers, mortgage brokers, lenders, money services and a whole range of providers.

as a federal and state level working to ensure stable and competitive markets as the soel insurance is rated council. insurance product do not spificily create the risk. connections may expose some insurers the risk.

the economy looking perspectively to identify and address and market these products that could possess and imagine fie the risks. this will require forthright communication. i am committed to this endeavor. thank you. >> thank you. the deputy administrator. >> thank you. i'm honored to be a member thf council. state regulators dpajer and act

upon the investors we are usually the first to identify the risk and trends developing developing the accumulation and risk. drawing upon the existing expert

he's of each functionnal regulator. i look forward to the insights. thank you. >> i want to start by asking the council to consider the resolution before you on the by laws before you. are there any comments. do we have a motion to approve. jo second, all in favor say aye. any opposed?

do you have a resolution declaring the need for open sessions and recognizing that often we'll discuss things and discussions to be protected. any operations about these proposed discussions. i know we discussed a lot about this.

we are not perfect people but i think the transparent si will be good for public comment. >> can i have a motion to approve? any opposed? >> excellent. we have two residence lougss before us on the proposed rule making. seeking public input we use to designate the financial institutions. these questions have b designed

by laying out 15 questions. any comments, observations? >> could i have a motion to approve? >> so moved. second. all in favor. any opposed? >> next is a resolution asking for approval of the publication seeking public infoot on the rule study. the working group of the council on these studies have started work and is in the process of dpiping to see how we shape add mip stragss.

seeking input on this process and in the early stage, any comments >> could somebody remind us how many months and days we have to do this study? jo good question. jo six months to the conclusion of the study. jo i believe there's nine months for rule making after. great. ok. the motion to approve the recommendation.

second. all in favor, ex-lend. >> next item a document we would like to release to provide a prospkted time line for implementing a complex start of rules. where possible, the purpose is to give people a sense of when they are going to comment. what i'd like to ask is whether you'd each be comfortable putting us in the public domain. any reservations in doing so?

as we discussed, we can align the work we are doing in the role bringing that together by next summer and early fall. we a grow on the importance here. awful you in particular have burden now. the rules require and the complexity of the issues involved. the number which would require the joint rule making. really without precedent i think.

deadlines are helpful. the deadline is in the law. >> with that, we will release this road map so it is in the public domain. that brings our formal open session agenda to conclusion. any other issues anybody wanted to raise before we conclude? excellent. thank you very much. >> do i have a motion to adjourn the meeting? >> so moved.

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the least suspenseful announcement of all time. as almost all of you have reported, my chief of staff, rahm emanuel, has informed me that he will be leaving his post today to explore other opportunities. >> with the announcement, rahm emanuel heads back to chicago. since 1992, he appeared on c- span more than 400 times. just one of the people you can search and watch for free online on our c-span video library. it is washington your way. starting next on c-span, it is "washington journal". our guests include deepak bhargava of campaign for community change on efforts to mobilize voters in this year's midterm elections. year's midterm elections. then ed