u.s. troops to leave. and even now they want u.s. troops to stay there is there pragmatic reason why. civil warrt of the happening, ok? the worldthat part of thinks america is moral. that is something that is said here. >> i think this world without the u.s. leadership, the u.s. leadership of the world has you no sense world war ii, played such an important function in maintaining generally the absence of global war and if we look at the 1993 when the united kuwait, you know, iraq, imagine if the united states did not go in there and drive saddam hussein from kuwait. who would do that?

i actually often ask this question when i lecture in china, which i did do it? would rush into it? i don't think so. russia do it? i don't think so. despite the united nations and all of these regional arrangements, still i think you need leadership. this leadership not only in terms of playing a police role but also in other areas whether the roleanitarian or of economic growth. i think the united states is still the largest market in the world and without the u.s. market a lot of countries, including china, will not necessarily see what they have achieved so far. certainly democracy is a another that the united states

is championing. i do not think europe will take up that role in championing or the promotion of democracy in the world. so all of these i think points towards this important i think role that the united states is going to play. i think if donald trump really to cocoon the united states in isolation, that will cause extreme anxiety all around the world and in particular the asian companies -- asian countries. i think the asian countries are looking for continuous involvement of the united states both militarily, security-wise, and economically and that part of the world. >> another refrain we have heard from trump is he is going to rip obama'sof president

accomplishments. you look at the iran deal which trump has lambasted the entire time. the climate agreement, which china would probably pull out of that the u.s. is wavering at all. trade acts all over the world. there are a lot of things that are on paper that can be undone or can be started to disappear very quickly. how do we come to terms? the are very different topics, of course. >> you know, think the two things that are really going to be different going forward, i don't think it is just president-elect trump. i think it is u.s. policy when we look at the role we will play in the world. immigration. i tell my students, immigrations is not even in the books, it is not on the map. criticalns, americans, concern for the country right now. they will register immigration.

i think from the war in syria you have the same concerns about immigration spreading across europe. i think all democracies are going to have to ask fundamental questions on what the defense are on who will be the recipient of benefits and who is not. those are fair questions for people who pay taxes and any industrial democracy to ask. the second has to do its trading and whether or not we're going to continue to think of trade is a universal good. those are very serious questions , eitherot addressing political party, and need to be rethought. we have not really paid attention to people have suffered and who have not been beneficiaries of globalization and once again, all global democracies have to think about all of their citizens. >> i agree with that hand if you look at the question of immigration it is very interesting because the trump empire, the business empire of

donald trump relies on undocumented labor of course. like american capitalism relies on undocumented labor. not a single restaurant you can go to where the kitchen staff are not undocumented. not a single one. economy. on the these are captains of industry and people who run these. who hire undocumented workers. donald trump, i'm sure, knows he is not going to start paying nine dollars or $10 or $11 an hour for someone to wash wishes. he is going to get someone and pay them one dollar an hour. them reported. employers need that leverage to turn profit. so why is he doing this? his own to be against very interests as an employer. i think that speaks to the core of what this rhetoric does.

but -- this this 04 is a no for be a. will continue to hire undocumented laborers at keep them marginalized because that keeps them from being expelled from the country. at the same time, donald trump is no champion of ordinary working people. he uses this rhetoric but i would be shocked if he actually did something to -- i would be shocked if he built a wall. howuld be interested to see that would happen. what is much more likely and plausible that this is useful rhetoric to get people who themselves are perhaps dispossessed, cleveland is a perfect example of what is happened in this country over the wording, 40 years. scapegoating people.

will say its, he needs another four years. to get it done. >> we are a renaissance city. i just wanted put it up there. i mean, we're coming back. applause] >> i want to open it up for questions. if you have a question, come on up here. don't be afraid. we will address your questions. i wanted to ask a question about his this is. i was reading a piece in the new in settoday and precendents are not bound by the same conflict of interest statute as cabinet and white house staffers which means technically he could retain control of the trump organization even though he said he would give it to his siblings. the trump organization has had fascinating deals.

with your experience i will give you this easy question. with ayou deal with that president that controls a corporation as he does? conflicts of interest? >> it is not just any corporation because he cannot just turn control over like people of done in good faith, to turn it over to a blind trust when what you are selling is your name in brand. it is impossible. journalist raises questions consistently. i will be shocked and pleased when his audit is finished and and wehis tax returns can evaluate what foreign countries would pose the most conflict of interest. we would welcome that. i don't know. this is the great unknown. what the future holds. but absolutely, he could not do it even if he wanted to.

he would have to take the company apart for the years he is president to do what other presidents have done. >> if this is true, are there any safeguards to prevent a commander-in-chief from enriching himself personally while in the office? fairness to president-elect trump, the charges have been leveled at previous government officials and their connections to companies involved with the war in iraq, for example. blind trusts presumed to have benefited greatly. correct me if i am wrong but in a rack -- but in iraq, the number one country was great written -- great britain. so there have been other government officials with questionable relationships with businesses. this one happens to be particularly egregious but hopefully because it is egregious, people of good faith who have the ability to vote

will ask the questions and keep pressing on the officials and do something about it the next time we have an opportunity to vote. >> we afford use of things to ask about here -- where four years of things to ask about here. >> thank you for the super interesting conversation. thinkondering, how do you the next president should define american leadership in the world top threehould be his foreign-policy agenda items when he takes office and who do you think you should appoint as secretary of state? >> you want to start? [laughter] >> well, i think for the americanp question the foreign-policy we often say is the product of bipartisanship. so since world war ii, the

american foreign-policy has consistently reflected some of these leadership qualities whether it is leading to free trade, whether it is promoting democracy or engaging humanitarian or even security and all of this. donald trump does not have to create even more leadership positions. all he needs to do is to continue some of those bipartisan foreign policy, you know. i think could be a challenge for him is the leadership in promoting more and environmental protection throughout the world. the fight against global warming. i am not sure he could've done that because obviously he is for the call energy and he promised

all these coal miners in west virginia jobs. -- he clue energy that really requires american leadership. his daughter would be a good secretary of state. her articulation. moret hope she could be versed on foreign-policy issues. >> i think the them -- the model of american leadership is one i would like to see that america acts as what it holds itself up to. thousands of protesters in the streets of bahrain is part of the arab spring and the

u.s.-backed saudi arabia and crush the uprising against democracy. hours. give examples for saudi arabia's bombing yemen, killing thousands of civilians. saudi arabia is targeting hospitals. targeting hospitals. is sharingstates intelligence as this is happening. not just of american approval.ce, but the leadership i would like to see the united states actually upholding democracy around the globe and set of pretending to uphold democracy. whichly choosing democracy and likes to uphold interests.its >> thank you. [applause] >> i have two questions. i will pass on the economic fair trade question and ask you the nastier one.

the military question. first, europe. mr. trump has said he wanted to defund and a lot of nato but he has also prodded them to pick up terrorism. which they have done. what has been his effect on nato. the uglier one deals with china's influence over north korea and threatening to pull back. trump has been talking about providing missiles korea, andouth possibly taiwan as a way to force china to rein in north korea. i would like you to comment on my belief if he retreats from that area, will there be the effect of japan, south korea, togetheralia getting

with possibly singapore to form a nuclear arms protection group? >> thank you. you want to take nato first, katie? let's think about this. we are in a transition and i cannot read president-elect trump's mind but i do know what the obama administration has just finished after eight years and one of the stunning differences is president obama introducing the nation of restraint. restraining ourselves in some foreign-policy situations can be it's on form of action. choosing not to intervene in the war in syria, he defended with the idea that restraint is its own policy goal there. by the same token, president obama has introduced the notion of leading from behind. being a force but not always

bring me force out front. it is hard for me to believe that just what i'm about donald trump, he is not going to want to up more of a leadership role play on president obama has taken. hiswe all hope that advisors and he modify some of the language and some of the direction he spoke about in the campaign but i think that sometimes people forget what the world might look like when the united states does step back and earlier when you said, we don't have any interest in syria, i look at that on the grounds that they are not just to military and. the humanitarian crisis has spread throughout europe and our allies are under a lot of strain. nato, threatened the eu, our allies in europe we care about and have business relationships with. so resolving these problems is going to be an issue and it is hard for me to believe that president trump is not going to want to be the first one out

there leaving them any more than president obama. about the talk influence on the north korea situation? koreanobviously north policy, whether it is on china or the united states, it does not work. the koreans continuously expand nuclear programs. however, the chinese concern about north korea obviously is if the west press is so hard so that the regime collapses, then millions of refugees coming into china's borders. that is why the chinese government recently sent more humanitarian aid to the flood nd etc. there is a really concerned that in china, in north korea, that the united states will unilaterally take action against

north korea because they are concerned that the united states is not going to see north korea actually develop nuclear arms. i am not sure that the president-elect has the north korean policy. but from the obama administration i am sure there is a plan to either engage in search orof nuclear further press the north koreans for giving up the nuclear weapons. so that will be a challenge for the president-elect. how he's going to deal with north korea. i think he probably most likely will press more on china to do has saidbecause he several times that the chinese should take care of north korea because that is an chinese sphere of influence. he does that, it probably is a better approach.

the question is, to what extent can he press the chinese, right? that is the issue. obviously the question is policy a north korean would affect japan, south korea, or other asian countries. i think the impact will be serious and most likely japan will just go alone and developing nuclear weapons because japan cannot literally develop a nuclear program overnight. and the south korea might also see some security measures. so-calledans the northeastern asian alliances go back. so that is very serious. i do not know that donald trump has thought about it.

he probably has a good advisor on that. laughter] >> i did read that donald trump said maybe it would be a good idea for north korea and japan to have nukes which is going against what we have seen for decades. >> i want to thank the city club for offering this because we brought up some amazing topics that restore my faith in democracy because these conversations are so important. you brought up some disparate points talking about america as a moral authority versus the vulnerable populations in syria. you also talked about promotion of democracy when i am not 100% is thee as it stands form of government that i think protects the people because i do not know how we are protecting the minorities. right? even white men if

that is the minority want to talk about. because they are obviously super-angry and they voted for donald trump. so with that being said, all of these precious. religion, vulnerable populations, economics. many countries with many views on how this goes and this guy is ready to go off the wall on twitter at any minute with whatever he is thinking at the :00 a.m., right? my question is, we have a very vulnerable prices that is not only occurring in syria but has been occurring for generations in palestine. you've got israel and palestine combinations that are religious -basis democracies. into not how we believe democracy should be whether it is a breakdown of religion and state. so i wonder how you think donald trump deal with that hot button issue.

actually donald was in --rst call today. so that is an indication. i think someone said the idea of policy and state is finished now with donald trump in power. so that is most likely. ironically, not just because there is an anti-semi movement anti-semite movement as well. looking at trump broadly what is the u.s. policy and that part of the world in israel-palestine, israel is american special ally. moving towards policy and statehood but at the same time armed by the united states, funded by the united states. should beat really

intensified. what is happening inside israel is very interesting because the ascending of the right-wing a over the last 10-15 years and i feel that donald trump is going that right-wing sentiment and it is very dark times for because the only solution i believe ultimately the democracy i think is a very simple thing is that everybody gets one vote and they decide how they want to run their country. that does not exist in israel right now. to have to have a background have a right to israel so it is a really dark time unfortunately and i think donald trump will make that worse. >> i am glad you raised this issue what you mean by

democracy. i wanted to use this for my position. leadership american and democracy, i did not mean the united states would go around imposing a system on don'tcountries because we need more electoral college system, right? applause] >> by promoting democracy i met principlesemocratic of freedom, equality, rule of law, participation. these are the principles i think a lot of developing countries need. with that principle they can come up with their own systems. that is very important to uphold those principles. >> thank you for joining us tonight and presenting your views and thoughts. it is been a great conversation. i want to talk about donald abouts comments are vladimir putin and russia as a country he can deal with.

we seem to get this idea every time we get a new president that the existing alliance structures that america has is great but we are not getting enough from our allies, we want more. if we go back to 2003, president bush had a lot of frustration with his european partners and andd to find new alliances work with russia, china. in the end, i think he found there are you know, reasons we have not worked very well with them in the past because there's not a lot we agree on. but i would like to take the president-elect's ideas for a moment and ask all of you, where are there opportunities for establishing new or better strategic alliances around the globe? where are their possibilities for either a new and improved relationship where we could take this idea and grow something? i don'thing i would say

know if it is a direct the answer, is that we think about these elections and all but what drives foreign policy is reactive and for americans, one of the defining moments after the end of the cold war was 9/11. i think what changed after 9/11, we are a country with two oceans on either side and secure borders on the north and south. for the first time in our history we were in an unprovoked attack. our whole sense of security and our well-being was threatened in a way that americans had never been threatened before and when we think about european history, we see the opposite. the end of the cold war around the same year, ron 9/11 was a moment when you're up for the first time was secure and europeans were feeling like they were not worried about a european country invading and so when using about the opportunities what does concern thes the whole idea of

european union is thinking about rearming, a common defense budget, and the threat that russia imposes. i think it is important to realize the insecurity reforming there is the same way the security is forming here. i guess what i'm saying is looking at these is the disturbing trends and then trying to understand how we are going to live in the world that we are not going to go back to that world we had before 9/11 when we are not going to be subject to unprovoked attacks because it is just a world of change. you.ank >> thank you guys for coming. we're honored to have great events like this in an unusual context. we are talking about the moral authority to lead the world and you talked about trumps business of ansts but sort interesting situation right now is a president-elect that has two pending trials against him that he could either be

convicted of. i am not trying to pre-judge but hearing on the news that they have very solid cases. if we have either a president-elect are elected president or a president power that is convicted, i suppose to think back to the clinton years when we had a big confrontation within the congress, do we lose the moral authority to lead if we have someone that is, you know, being censured or we have a that if convicted felon, you know, he could potentially pardon himself and so on -- that is a fact. he could actually pardon himself. he could not it out of impeachment but the idea of ainking about having convicted felon as a president is an interesting thing in terms of putting us on the level of berlusconi or dictators that cannot be brought to trial but of course we take them down a peg or two in terms of what they

, you know, can be -- >> thank you. >> i thought about it. i have actually thought about that because of the serious nature of the charges against him regardless of whether or not they prove to be anything. would look example i to is president nixon. what happened with president nixon is that the republican party went to the president and said, we are not behind to if you go through this impeachment trial. whatis different than happened to president clinton. the democratic party did not react the same way. we can talk about the party differences but what we will not know is what president-elect trump's relationship is going to be with the republican party going forward. it looks like it is going to be pretty bad to me. i think the republican party has a lot more to worry about than

the democratic party for reasons that have nothing to do with what we are talking about tonight that i don't want to roll out the possibility there are really good republicans who in an impeachment trial or at these charges are approved and come to be true, would not say thing because they did in the past and i think people of this kind of concerned and once again if they do not, we have midterm elections and we are still a democracy and those are the kind of people we should throw out if they do not stand up for that. applause] >> we've gone a little long but to close i wanted to say right after the election i got word from friends overseas. one was from somalia who said a government official they are laughed at him when he heard about the election results. a friend of mine from germany and morocco asked me what

happened. they could not understand what happened in the election. they were very confused. what we learned tonight is the world does continue to turn and we need to stay informed, engaged, and keep an eye on the process and hope for the best. so thank you all for coming out. thank you to the panel. have a good night. thank you. [applause] >> two house energy and house subcommittees come together for the meeting, live at 10:00 a.m. eastern on c-span 2. today, john doe which, chairman of the secretary advisory board

testifies about the future of nuclear power in the u.s. we are live with the senate appropriations subcommittee at 2:30 p.m. eastern on c-span 3. >> c-span's "washington journal," live every day with news and policy issues that impact you. this morning, the subcommittee chair will be on to talk about the elec election of donald tru, the lame-duck session and the republican house agenda, and then congresswoman brenda lawrence will talk about nichigan's role in camp campaign. 20 2016. then, why foodborne illness is hard to control. watch "washington journal," live at 7:00 a.m. eastern this morning.

join the discussion. >> now, architect of the u.s. capitol stephen ayers talks about the completion of the capitol dome. the project of three years and close to $60 million. following the briefing, the construction manager gave a tour of the dome. this is 35 minutes.

>> good morning. i would like to introduce the architect of the capitol. the honorable stephen ayers. [applause] morning,you and good everyone. thank you for coming out today. it is my pleasure to announce that with the talent and leadership of the dedicated team of people that have joined me here today, and many more consultants and contractors from across the country, the capitol dome restoration project is complete. [applause] >> this project was the first complete restoration of the dome in more than half a century.

the dome was in dire need of repair, and with the help and leadership of the congress, we repaired more than 1300 cracks and efficiencies in the cast iron. we repaired and recast intricate ornaments, gutters and balustrades, the team used both innovative technology and historic tradecraft to repair the dome. our work revealed and preserved the exquisite craftsmanship that went into the construction of this great dome. we removed hazardous materials, upgraded electrical and mechanical and fire protection systems, and finally, repainted the rotunda and the dome itself. the aoc's model is to serve, preserve, and inspire. and we do so every day across this campus. but this one project was the most visible of all. the symbol of america's democracy and a beacon of hope for millions around the world

and we delivered. our work to serve the people of the united states and the congress will preserve this monument of american ideals for generations to come. i am so proud of the team that worked through the night and all kinds of weather, a blizzard, snowstorms and scorching summer days. we successfully met our deadlines and did so under budget. i would like to recognize two important individuals in particular. first, is joe. certified construction manager for the dome restoration project. and secondly, shane gallagher, also a certified construction manager working on the rotunda restoration. and these two gentlemen did a

fabulous job for the last two and a half years. they lived and breathed every single detail of this project. they did a fantastic job in managing a very complex and risky project and for that, we are all incredibly appreciative. so, let's give them a round of applause, please. [applause] now, it is so important for us to just take a moment to celebrate and share the fine work this team has done here. and so, thank you for joining us today. thank you for your support. thank you for your patience as we restored this beautiful building for all to appreciate and enjoy. i am happy to answer any questions anyone might have about the project.

>> how big is this dome? is it the biggest cast-iron dome in the world? >> we believe it's the biggest cast-iron dome in the world. the top is 288 feet tall. >> is there any historical graffiti or remnants of the original builders or workers? >> the question was, did we find any historical graffiti or remnants of the original workers? and we did, indeed. first of course, montgomery miggs, as you might know, liked to stamp his name on everything he did. did indeedmiggs stamp his name on many of the pieces of cast-iron. and many people see that today dome. tour the

we have found some tools, in particular a crowbar. it was left behind is some 150 years ago on the project. employee of the architect of the capitol, al, carved his name in the plaster nearly 150 years ago as well and we uncovered that. is ports. al ports. you mentioned some innovative new tools. can you give an example of what type of work you had to do on the dome? >> we employ technology in a couple of ways. first using a computer program that enabled us to track these 1300 deficiencies along the way. that was incredibly beneficial for us. our cast-iron manufacturer also

uses 3-d modeling to model many of the pieces of ornamentation that had to be recast and use that model to construct a mold to recast the new pieces of the cast-iron ornamentation that we put on the dome. bitan you talk a little about why the project needed to happen now? >> the question was, why did this project need to happen now? we have been monitoring the condition of the dome for nearly 15 years now. really started in the early 1990's, when we had a very significant water leak in the dome. as we investigated that water leak, we found that many of the rain gutters on the dome were completely clogged with rust that was falling off the dome, clogging the rain gutters and causing overflow of the water that then came into the rotunda itself.

and so, we monitored the cracks and efficiencies during those years. we had 200 or 300 of them. tipped 1000, we determined it was time to intervene. we were losing too much historic and original material of the dome and went before the congress, requesting money to refurbish the dome and they were incredibly generous and supportive of that initiative. repaint anyave to of the paintings in the rotunda? >> the question was, did we have to repaint any of the paintings in the rotunda? and of course, there are three. the apotheosis of washington, at the top. that was not touched during the restoration project. it was refurbished perhaps, 20 years ago and is in great shape. freeze of the

american history in the center of the dome. that was cleaned and touched up during this process. and then down below the beautiful oil paintings. they were not touched during this process and they are in great shape as well. can use begin little more about what it means to have this done by inauguration? in january. >> it is so important for us to have this project done by the presidential inauguration. we called this capital and the west front our nation stage. and as our nation's stage, it needs to be beautiful and the is the time that everyone across this great country and across the world will be watching and it is so important for us to have this grand capital building to look magnificent and to truly be our nation's stage during that time. thank you, everybody.

>> thank you, mr. ayers. i would like to thank all of you for attending the announcement. you to our talented and dedicated team who supported the project. on the table to my right you will see examples of the cast-iron used during the restoration of the dome. you will also see a cast-iron acorn. one is assembled and the other is disassembled. you can see the level of detail that was required through the intricacies of the dome. we also have additional information on our website. is aoc.govs /dome. thank you for coming. >> this is the iron staircase

that provides access up to the roof level to get into the dome. our work in here, we would have taken apart, or taken down the moving -- our work required us to move the plaster that was loose. before we move that plaster, we had to do a paint analysis. we ran through and took hundreds of samples to document what the colors were of the stairwell. as you might recall from the previous torah, this area has been painted gray for a number of years. so, we had to remove the plaster, put new plaster, and repainted that the historic appropriate colors of 1865. the other thing we did is the natural skylight above us. that has been boarded up for years, covered up son alike can get it -- covered up so no light can get in.

our work in here included moving plywood that had boarded up this historical skylight for a number of years. after that was moved, we replaced the glass, installed it, and then i installed a modern skylight for safety purposes. skirtnow we are in the area of the dome. this is the second dome on top of the capital building. the original dome was a wood, dome on topd copper of the sandstone foundation to my left. as the house and senate expanded, the extensions continued and the capital got larger. there was the need to remove the wood and copper dome and replace it with the iron dome. the ardennes was built between 1855 in 1865. -- the iron dome was built between 1855 and 1965.

ironwill see these large, brackets. ok, so the iron dome that was built on top of the old foundation from the original dome is larger in diameter. to overcome this, these iron brackets were built on top of the foundation to carry the entire colonnade that everyone can see from the ground level. looking up, we are looking at these brackets that can lever out, support the dome, and in these hollow openings where the water and rain come through through a series of gutters from the top down. the skirt level is this wall the way around us that has been built from the top down, to make the dome look uniform.

one of the surprising things we discovered was a historical artifact from the original 1855 to 1865 construction. the dome was built without modern tools. we use tools like power drills and take them for granted today. the large columns, they actually served as downspouts for rainwater. and to get a gutter through that they had to drill a series of holes through the column with a hand drill, and then take this chisel to the left with a sledgehammer and knock that out to make a penetration through the column to put a pipe through. so, we discovered these artifacts from the original construction laying in the bottom of one of these columns. alongere are 36 columns and the alternate. ventilationone is and every other one is a rain drain.

we found these historical artifacts at the bottom of the column. this is a picture of the original dome that was on the capital. on the famous picture, you will see the wood and copper dome sitting on top of the sandstone foundation. per dome was cop removed in the sandstone foundation survives and is here to my left. the iron dome with an built on top of that sandstone foundation. yeah, these are the brand iron staircase. that provides access from the roof level up into the first gallery to the dome. the return to level. during the course of the

construction, the staircase was protected to ensure no damage to this historical work. we are going to move through the first gallery. this will give us a look inside the rotunda. from there, we will climb all the way up. we will get to the top of the dome. steep staircase. everybody watch their step coming up. yeah, we are walking to the first physical right now, look over the rotunda.

outside the window is this column made for the paris-style. now we are to walk into the area between the two domes. you are now overlooking the rotunda. so, we are scoping the product for the rotunda restoration. we would install a large protective legging. the project was done while

congress occupied the building. five hundred thousand pounds of scaffolding was installed all the way up to the base of the balustrade. scaffolding was constructed. we did a significant paint analysis that took hundreds of chips of paint from all the layers to identify what the original colors were of agenda. we understand rotunda has inended fourt times history, from 1865 to the 1970's. the historically appropriate colors of the rotunda where, after that was completed, we moved all the face paint in the rotunda all the way down to the well of american history. once the paint was stripped, three coats of historically

appropriate colors, and upgraded the electoral systems. all of this work had to be done while protecting the oil portraits in the base of the the image of washington are both hiroshima, in american history. washington, and american history. one of the most fascinating things we have discovered on this project is really how detailed the cast iron ornaments where. so, outside the window we have a 36 year image of the 36 columns that surround the paris-style dome. behind it, we have this column capital. all of this is made entirely out of cast-iron. there are about 100 different ornaments on them and we had never known how these

these coordinates were connected. schools arerge made up of 18 individual castings. was it up to the founder to determine how to make these parts? so, after all this pain was removed, all these details a really made up. an ornate structure.

>> so, after that column representne of those

18 individual caskets. do you see the flour on the top and the two little rosebuds? they make seven individual parts.

[inaudible conversations] miggs, who was

the original cast ironer for the dome. his name is ingrained on huge projects he has worked for. he made his aim working on the dome to remove the paint from were large tie rods that discovered together. government 36 structures -- these remaining 36 structures hold the top above is from us. 1300 cracks in the exterior cast-iron that has caused water in filtration and threatening, .amaging artwork

>> we were waiting in a special area. this is the space between the outer dome and the exterior, and the inner rotunda coven ffin dome. the was repaired as part of project.

>> so right lois is the back of the rotunda copper dome. so all of the browns and new paint colors are on the back of this. what we are looking at here is the supports to hold up the dome. so as we go through here, there is a lower tier we left exposed. you may want to get a close-up of that. 1300 cracks that

were repaired. cracks were repaired using a metal stitching process that -- we discovered during studies that cast-iron cannot be welded. in ordering to weld cast-iron you have to take the entire and, put it into a furnace heated up. we discovered a lot of the repairs from the 1950-1959 repairs had re-cracked. so they were re-stitched using a process where a series of double hooked threaded hands are drilled and tapped into the cast iron that when they are finished they are ground off and they hold that cast iron together to

provide a watertight installation. >> coming up on c-span, securities and exchange commission chair mary jo white testifies at a hearing oversight for her committee. then republican congressional leaders. u.s. senator cory booker delivers the 20th annual lecture today and will be interviewed by the president and ceo of the leadership congress of seeing -- civil rights. at 6:00 p.m. on c-span. tonight, hillary clinton will be honored for her work at the children's defense fund. it is her first public appearance since conceding the election. watch it in :00 p.m. eastern on

c-span two. c-span's washington journal, live every day with news and policy issues that impact you. coming up, government reform sub chair will be on to talk about the election of donald trump, what it means for the party, key issues in the lame-duck session. then ranking member congresswoman talks about michigan's role in campaign 2016 and the prospects for more hillary clinton-related hearings. also, talk about food inspection and why food contamination is hard to control. the sure to watch live at 7:00 eastern this morning. join the discussion. where history unfolds daily. in 1970 nine c-span was created as a public service by america's

cable television companies and is brought to you today by your cable or satellite provider. exchangeties and omission chair mary jo white testified tuesday before the house financial services committee at an oversight hearing. topics include the dodd frank law and her plans to retire two years before the end of her term. this hearing is two hours and 40 minutes. [indistinct conversation] >> the committee will come to order. without objection. the chair is authorized to declare recess at any time. this hearing is entitled examining the sec agenda operations in fy 2018 budget

request. i now recognize myself or three minutes to give an opening statement. but i warn everybody i will take a lot longer because there is unanticipated news. first, before proceeding to the purpose of this hearing, i do want to note for all my colleagues that as we begin this hearing today, in 318, b3 18 of this very building, the rayburn building, our friend, our colleague, the great american hero and patriot sam johnson is being honored by having that very room b3 18 named after him. i think we all know he is a decorated war hero who served his nation with great courage, great valor in korea and vietnam and spent seven years and enduring and experiencing torture in the infamous hanoi

hilton. but we also know him to be one of the kindest, most gentle souls in this institution and he has many distinguished a accomplishments for his district and his position on the ways in -- ways and means committees. i personally look forward to visiting the sam johnson room soon and i hope all my colleagues look forward to that as well. [applause] cracks -- >> this morning we welcomed securities and exchange commission mary jo white and i will take a little longer due to news that we received last evening that the chair intends to step down at the end of the obama administration. i do wish to acknowledge, on behalf of all, that chair white has now completed over two decades of distinguished public service as a u.s. attorney, as

chair of the securities and exchange commission. she has brought an incredible amount of professionalism to her position. she is known for her independent judgment which is greatly admired and respected. i also want to personally thank her for being one of the witnesses, one of the few witnesses from the administration that has never requested an artificial time limit on her a attendance at a hearing. she has always made herself available to this committee and always made herself available to all subcommittees. she has indeed, epitomized what it means to be an accountable agency to article one of the constitution and she is to be commended for that. also, she is always submitted

her testimony on a timely basis. if there are cash and valuable prizes we could award you madam chair for such an accomplishment i am sure we would but i'm sure ethical breach numerous considerations by doing so. she has always made her division in provisions available, and again, the accountability and transparency that she has brought to this office is greatly greatly admired. but just in case you are lulled into a false sense of security, madam chair, we still have some concerns and we still have some disagreements it has been almost a year since your last appearance here and there are many subjects we are eager to discuss. chief among them are the sec -- the sce tsipras -- the

sec's ongoing failure to develop a formation agenda and minor rule changes to capital formation since the jobs act in 2012. the failure by the sec stems in part by the refusal to act on recommendations made by the small business capital for him. i encourage the sec to review these and act on those. that will small businesses to access the capital markets so they can improve, grow and provide economic opportunities for all american workers. also languishing at the sec is a directive task by congress requiring the sec to simplify its disclosure regime. requiring the fcc to simplify its regime. it became the wall of nearly a year ago to eliminate or reduce the burden from outdated disclosures. the chair also notes that you were under enormous pressure from those who were intent on politicizing the disclosure regime but you have an obligation to follow the law and not appease extremists whose

objectives have nothing to do with the sec core mission. in addition to feeling are required at the electronic delivery of mutual fund documents is disappointing. how can they force public companies to engage in social, environmental or sustainability disclosures while simultaneously promoting wasteful use of paper the cost of which is ultimately borne by investors. it's time to move into the 21st century and allow for the delivery of the mutual fund arguments. finally, we need to discuss the budget request and look at the disturbing national debt clock and i see no need for the sec to receive a pre- funded account of more than 290,000,004 the potential move its headquarters. they have increased the fees which is nothing less than a tax on the formation. the claims are not supported by the facts since the budget has increased by a whopping 325%

since the year 2000 and an increase that the american people do not enjoy. moreover, the current budget of 1.6 billion does not account for the money in the fund that includeinclude up to 100 millios another 25 million that carry over from the previous fiscal year. finally as is most important when there is a transfer of power from one administration to another, there is a temptation for federal agencies to rush the pending rulemaking to completion in the way of the policy priorities of the outgoing administration. but this type of mid-night rulemaking is neither conducive to the policy are consistent with principles of the democratic accountability. there are currently two vacancies that the commission absent an emergency given the current reputation and legacy, i would strongly urge you to respect the results of the last and resist the temptation to

finalize any regulations including dodd frank title vii regulations and in deference to the incoming administration to set up its own priority is upon taking office in january and i will announce it with five minutes to the ranking member. >> thank you mr. chairman and for being here today. i am truly disheartened to hear you will be stepping down considering there is so much at stake and to fight for and encouraged because of all of the kind words the chair man had to say about you when he started his testimony today. it's the nicest i have heard him be to any of the others in the agency since we have worked together. >> with the gentle lady yield. anybody on your side of the aisle i was a very kind words about. [laughter] i am sure since you said such kind words today you will be

asking her please stay, please don't go. [laughter] also, i am appalled that the reaction is record highs for bank stocks as the industry rallies on the massive destabilizing ball less agenda but let me be clear short-lived increases in the stock market are not the same as real hard-earned economic growth in the demise of the regulations that wall street is chairing or the very regulations that have made our consumers, investors and economy more resilient. in fact just yesterday wells fargo's stock closed at the highest price this year on the expectation that a trump administration and republican congress will erase its culpability. indeed, we are facing uncertain times and at the forefront of that uncertainty is the president elect who does not

have a coherent or consistent stance on anything. we don't know if he's building a wall or just a fence. we don't know if he's repealing obamacare or cherry picking some provisions he now seems to support. we don't know who he is, what he stands for or what kind of president he will be. we can't rely on anything he says because it changes from one day to the next. so when he talks about financial service reform and dismantling dodd frank, what does he mean, does he mean letting the wall street banks that he is so indebted to to write their own roles, does that mean repealing the fair housing laws of the department of justice that he was sued over decades ago, does he want to repeal investor protections and make it harder, does he want to go to the consumer financial protection bureau despite the agencies being the strongest champion of everyday consumers and does he

mean breaking up the banks by reinstating glass-steagall? in that regard i'm sure we can find common ground. does he mean closing the loophole and ensuring private equity funds and hedge fund managers pay the same taxes that everyday americans pay? will he pay the same taxes everyday americans pay? i'm curious to see how republicans in the congress act this wide ranging sometimes progressive agenda. mr. trump said h he smiled and pulled into wall street and other special interests, yet come here he is with departments of wall street insiders and their friends in congress to run this administration. he also said he wants urban renewal and to ensure african-americans have access to loans to start small businesses and appoint a leader to the nationalist movement as the chief strategist in the white house and he himself has made

racist comments. even though you are about to leave i hope that you will share with this committee and the incoming administration the important tool that is played in our financial system and i hope you will explain the importance of the securities beat and strong investor protections that have been the victim of woefully inadequate budgets as a result of republican obstructionism for years despite the role of the sec place in policing the ever-expanding financial markets they are now at a crossroads to offer american consumers and investors. if we enact these wish list for if they weaken the rules it will go back to the darkest days of the financial crisis. i hope that common sense will prevail. with that i will yield back the

balance of my time and i apologize for not spending more time on the sec and a lot of time on mr. trump, but that's what i'm going to be doing for a long time to come. i yield back the balance of my time. >> the chair announced yields two minutes to the chair of the capital markets subcommittee, the gentleman from new jersey. >> thank you mr. chairman and welcome, once again to the kennedy. before i begin, let me echo the sentiments expressed by the chair hensarling and regarding your tenure. every chair receives criticism when they sit here and around from both the left and the right about certain policy positions that they take. but recently you have had to

endure an unprecedented level of attacks from certain groups and individuals as well to have called out your integrity and professionalism and put them into question. they've gone so far to call you to break the law or be fired for your refusal to follow their direction. mr. chair, it is clear from the hearings we've had that piece anyou andi disagree on certain y issues, on more than a few occasions. but i can say this here that i have never, ever questioned your professionalism, i've never questioned your integrity and devotion to doing the good in your work. it is a difficult job that you have, and you've handled it very well. and you've done so for all the right reasons. so, i just want to take this moment to say thank you for your service and your thoughtful

approach for which you have tackled a number of issues in particular the area i spent a lot of time on which continues to be an important priority for. i did mention we've disagreed so let me highlight a couple of those before we go off. despite having an important mission to facilitate capital formation, i believe we've still not organically when of itself developed a capital formation agenda and instead really i believe it's rely almost exclusively the committee and the congress if you will when it comes to trying to change some of that and modernized areas to the benefit of the small and medium-sized enterprises. these are things we've talked about. this despite the chair man's path he mentioned the budget is not only continuing to grow, but the agency has again requested a substantial increase without

detailing how it would expand those on the missions. finally, i want to remain concerned that they haven't done an adequate job of a certain jurisdiction that's important in the expertise in the capital markets when others attempted to trample on your turf whether it is the department of labor or the regulators or the fsb. with that said i hope your testimony today as the wrap things up but he will address both of these issues and others to ensure that the congress andd to be as easy as compared to carry out the mission before congress decides whether the agency deserves that increasing the budget and with that mr. chairman, i will yield back. >> the gentle man yields back and we welcome the testimony of the honorable mary joe white. the chair has previously testified before the committee on many occasions. i believe she needs no further introduction and has received her deserving accolades. without objection, madam chair, your written statement will be

made part of the record and you've are recognized to give a presentation of the testimony. >> thank you very much chairman hensarling and ranking member waters, members of the committee thank you for your kind remarks i appreciate it very much and it is my honor to serve and again thank you for inviting me to testify on doctrin the report ad initiatives as well as on the fiscal year 2018 elementary authorization request. as the committee knows well, it is a critical independent agency that is charged with protecting millions of investors and overseeing the strongest and safest markets in the world. i'm proud of the hard work and accomplishments since i became the chair in april 2013 we've achieved record numbers of actions and examinations each year. we've completed dozens of transformative fool makings including fundamental reforms to the money market funds, credit rating agencies into the securitization markets. we thought an thought importanty

regimes for the capital raising and we've put in place the frameworks for the futurframewon areas that are central to the mission from asset management, equity market structure and the disclosure effectiveness. the latest results exemplify the agency's high-level performance during this time. in fiscal year 2016 the commission brought over 850 enforcement actions and an unprecedented number secured over $4 billion directing the payment of the penalties and we performed approximately 2400 exams from a seven-year high that reflects a smarter more efficient program. the strength of the enforcement program can also be seen in the kindclient, complexity and importance of the cases expand the market in the securities industry including the numerous actions. the past year also shows the commission with only three members was able to continue to

pursue a consequential set of policy measures designed to protect investors, strengthen the markets and open new avenues for capital raising. since i justified the agency has advanced nature rules and testing equity market structure issues including the transparency and order handling practices while moving forward with a comprehensive assessment of other fundamental structural questions and this afternoon the commission is scheduled to consider approving a final plan for the critical consolidated audit trail. we've also continued implementation of the series of proposals to address the complex portfolios should and operations of exchange credit funds. we adopted the rules to modernized the data and the the advisors and adopted a proposal for the new control on the use of derivatives and to better enable businesses to raise

capital through local and regional offerings in advance contains a preview of the effectiveness of the disclosure regime including through several detailed proposals in along with several other rules prescribed, we finalized the critical components of the regulatory regime for the security-based swaps and established a new standard for the agencies that stand at the center of the financial system. in addition to the discretionary initiatives, the commission has adopted the rules for nearly 80% of the provisions of the act url and under the fast act v. enforcement in the rulemaking perhaps is the most prominent example of the agency's achievements and the imperatives of commission are also. forward by the exceptional staff every day from reviewing thousands of filings each year to assess the complex submissions and exchanges and others to incisive economic

analysis and publications and as reported today, the commission has for the second year in a row received an audit report with no material weaknesses were deficiencies on the financial statements. the commission today i believe is a stronger and more infected agency and i'm honored to have e let it ring this time of progress but significant challenges remain if we are to adequately address the size and complexity of the markets and the ever more sophisticated financial services industry. and it is critical that the sec have the resources needed to discharge its important responsibilities and many others that we have held. i deeply appreciate we must be stewards of the funds we are appropriated and we strive hard to designate how seriously we take that obligation by the work we do. at the same time, the resources are inefficient to fulfill their responsibilities to investors

and the markets and the cuts to the budget would seriously imperil the progress we have made and diminish our ability to fulfill the mission. while more remains to be done, the accomplishments of the last few years across the range of the vital responsibilities have both been an oppressive and enormously important to investors got the markets and capital formation. for that i want to think first and foremost the staff as well as my fellow commissioners present and past into the chair man, the ranking member if the committee as a whole for your continued support to allow us to fulfill the mission for the american economy. if cyanide on a personal note, i did announce yesterday i would complete my tenure as the chair at the end of this administration in january. it's been my honor and privilege to serve and while i haven't yet done my david letterman top ten list, i'm sure that my

appearances before the committee will be somewhere on it morsi previously, as an independent it ticketing agency, it is to be expected that we have had areas of agreement and of disagreeme disagreement, but i very much appreciate the professionalism and courtesy of the chair man, the ranking member at the committee generally as we have together grappled with the challenges that are so important to the american public. thank you and i'm happy to answer any questions. >> thank you and at the chair now yields himself time for questions. >> as you know the significant tension has been devoted recently to the liquidity concerns and our u.s. and global fixed income markets when you testified at last yea last yeari asked you about the regulatory impact on the bond market liquidity and at the time you testified while no questions or concerns about the fixed income market at that time a year ago,

you could not identify a culprit. since then, we have had some news and evidence of the regulatory impact on the liquidity. september 27, the secretary hank paulson commented that the rule solved a problem that was not a problem. we have much less liquidity and it's become harder for financial institutions to provide liquidity. september 16, the ceo, one of the world's largest electronic market makers announced that his firm would no longer invest in certain bond exchange funds because the underlining securities had become too hard to trade thereby eliminating sources of liquidity is that banks continue tthebanks continr role as the market makers. october 7 of the value o sevente british pound plummeted from

$1.26 to $1.18 in a matter of minutes. drain trading in asia with electronic platforms recording trade as low as $1.15, the "wall street journal" attributed this in part to a lack of currency traders in the foreign exchange markets. so, since your last appearance, have you been able to determine whether regulations, such as the poker rule -- voelker rule is a contributing cause of the continuing decrease in the liquidity in the fixed income market particularly the corporate bond market? >> the short answer to that is no, that w but he continued to t very carefully. as you know, economists from the division of risk analysis are charged by congress to study and report on the impact of regulation generally.

the report is due in may of 2017. >> is the recent data concerning because it has been a year and it's disappointing there are enough conclusions. >> it does concern me i think i said at my last testimony as well and the overall issue deeply concerns me and it's something i will say i go back quite frequently to the staff to try to drill down on but obviously we are reporting to congress into this committee in particular each quarter is on the corporate bond of liquidity, primary market as well as secondary liquidity levels in the bond markets and that essentially owe some decrease in the dealer inventories but by most measures, there's not any deterioration. >> i think that you are aware and many economists believe that frankly the next financial crisis very well could be triggered by this phenomenon. so, as you were soon to depart your stewardship and the chairmanship, i would simply

request resources be focused on this. during your appearance before the committee in march of 2015, i ask you and other members of the financial stability oversight council to conduct an analysis to see what systemic risk could be posed by this significant liquidity in the market since that time has the sec or a fsoc resulted in a lack of liquidity in the bond market? >> i mentioned our economists as well as others on the staff in terms of fsoc, there've been working groups on the staff looking at that, but there is no conclusions. there is some work going on in different working groups.

>> again i would commend to you this is an area that is deserved of laser like focus, and i hope the appropriate resources will be devoted again. it's been at least over at here since these concerns have been brought to your attention and the attention of fsoc. one last question. during the adopting phase of kabul, five regulatory agencies have the ability to interpret, examine and enforce compliance that has led to the overlapping and conflicting guidelines. to what extent are the adopting regulatory agencies trying to coordinate agencies in the rule? >> we still have the working group we talked about before that meets frequently on interpretations and also coordinating enforcement that you know is assigned to the different agencies. so we are working very hard to coordinate it as consistently as we can possibly be. >> the time of the chair and is

exhausted, and now we will yield to the ranking member for five minutes. >> thank you mr. chairman. i'd like unanimous consent to enter a story from the "washington post" from august 10, 2016. >> without objection. >> for those of you unfamiliar there is a legal disposition from late 2007. donald trump had sued a reporter for defamation alleging the reporter lied in his book about the network and the general success in business, something that we know he is very sensitive about. because he sued the reporter, it allowed the lawyers to get access to the business documen documents. it became clear that it was

trump that was lying about sales levels in the condo buildings and how much it cost for the golf clubs and the amount of debt andeath and the number of employees. he lied about how much he was paid to give a speech and overstating it by 1.5 times and he lied about needing to borrow money from his rich da rich dadd tried to pin the blame on one of his books and lie lied about fas that are simple to disprove, things easily verified by searching documents and public records. this lawsuit was thrown out by the judge and was denied an appeal, but this man is now our president elect and i expect him to continue with these extortions only now the nation is at stake and he is a thin

skin to bully and i hope he doesn't lash out on the freedom of the press and peaceful protesters but we are standing ready to protect our american freedom and will hold him accountable. i bring this up because you were the lawyer in the 2007 case that helped decode them and expose all of these lies. the deposition as i mentioned as part of the public record. so, is the "washington post" story true, did mr. trump misstate, indent and fly it out of business information and was the lawsuit job ditka throw thre judge on the case? >> you are correct that i participated in the defense of the reporter that wrote the book that you mentioned and argued the appeal myself and the

reporter prevailed in a case that i don't think it would be appropriate to comment on specific statements of the litigation. >> i just wanted to confirm and place in the record of this case. take place and you are part of the deposition so now we all know firsthand the character of the man that is going to be our next president. now i understand why the chair is stepping down and laughed. i yield back the rest of my ti time. >> i recognized myseself now for five minutes. you and i both talked that he had correspondence back and forth about the implementation of the past act which was to simplify, modernize the requirements under the regulation and as you know,

there were a couple of deadlines so the first was to eliminate the outdated disclosure which you have done and the second just to next month i is too issd a reporto issuetheir report to n further ideas to modernize disclosure so going through the testimony today on page 12 of the testimony you say the staff has also completed a study and report on how to further modernize the regulations as mandated. can you apprise us of the report that you are referring to and referencing and i say that because to the best of my knowledge ie and my staff hasn't received a study or report on that. >> i noticed the same reference in the testimony.

i believe the reference is to the report is due november 28 in congress and the staff has completed certainly a draft of the report that with the commission for review. it's a staff report but as is customary in the procedures for most staff reports provided to the commission before congress. >> my next question as an easy follow-up then is the deadline is established -- >> november 28. >> and there will be met -- >> i certainly be pizza. >> before you leave here for that we will have that report. >> i hope it is t this to you by november 28.

>> the equity structure committee which has been around for a while now slated january 2017 so do you anticipate renewing the committee for another term or is that something that you were leaving to tour successor to handle? >> i think that it should be renewed and it will be useful going forward. maybe a february 2017 date but to renew the charter we need to deal with it now so i will be discussing that with my commissioners. >> so from where you sit, it should go forward. and are there other industry representatives that are not there that should be such as retail brokerage or anybody else? >> there's been a lot of discussion. when it was a full commission and actually five members of the

goal was to get balance and representation but there are retail brokers as one area that is represented by virtue of the knowledge of members on the committee that one that we have identified with an actual member of the committee and i think then we also had request from other folks. that is also up to the full commission. >> so that is something that he will throw out before you leave a. >> it's possible that we would figure out the membership in short order. >> they've listed the rules in person intandpursuant to the ace as such do you believe that they should continue to examine the impact of the rule of the

markets into the behavior of the market participants as you indicated several years ago back on this topic? >> i do and i believe we are. >> i talk about the equity as we have certain proposals out there in certain areas we think we should act now and then we have a comprehensive review of the fundamental structural issues that is front and center and we are working on that. >> my time is expired. i have more i was talking about in the opening statement as far as the capital formation not being done but again, thank you for your service. >> thank you very much. >> the gentle lady from new york is recognized for five minutes. >> thank you mr. chairman and for your public service. you have been a trailblazer and a role model to many young boys

and girls. new yorkers are proud of your service to new york and the country and we thank you so much for your leadership and groundbreaking stellar career in so many different areas. my question to you is about a statement he made last month when you gave a speech on the regulatory regime for the u.s. treasury market. you noted under the government securities act, firms that act as dealers are required to register with the sec as government securities dealers that you also noted the regulators try and report when treasury market volatility has the most active dealers in the treasury market for high-frequency traders, principal trading firm miss many of which are not registered as government securities dealers.

you stated, and i quote, there is significant concern that this activity indicates that certain principal trading firms are acting as dealers but without the appropriate registration and regulation that is designed to protect investors and the market. so, my basic question is why has this been allowed to go along for so long. view your self admitted that some of the principal trading firms are clearly engaged in the dealer activity without being registered as dealers. if that is true, why hasn't the s. e. c. brought any enforcement actions against those acting as unregistered dealers? >> i think i indicated the date of that i drew those observations came out of that joint interagency study of the events of october 15, 2014. and it raised questions about whether some of those firms shouldn't be registered.

i also mentioned in the speech and i know that i have elsewhere the staff is working on whether there needs to be public guidance issued as to where the line between the dealers and traders are to take account of that phenomenon. it's interesting what is happening is terrific frankly because you have great cooperation among the various agencies including treasury, banking regulators and the cftc working together. we each have certain spheres of authority in the treasury market and i also indicated that speech that i thought we ought to apply some of the authority for greater transparency and other protective measures in the treasury markets as well as the equity markets. >> my second question is about the statements that you've made several times over the past years. you suggested that they should rethink the 2009 disclosure requirements to provide more

useful information on the diversity of words and their nominee and you directed your staff to review the existing disclosures and at my request they reviewed these requirements and found the information provided by the companies is inadequate and not helpful to investors and i'm wondering if your staff reached the same conclusion and because of repeated studies that indicate more vigorous leadership helps companies avoid so-called groupthink and make better strategic decisions, many investors want access to the data onboard the diversity as they make investment decisions or exercise their voting rights so leading institutional investors petitioned the commission in march of 2015 to revise the diversity disclosure and suggested that a simple matrix could make the disclosure assembler for the investors, issuers while providing investors with actionable data.

so where does it stand, and where are you? i do want to say that in this reportereport that showed that n were 16% on board if they got their activity significantly it would be 2040 before there was any gender balance. they also provided research and private firms that showed when there was gender diversity the bottom line was better for investors and my office has received requests for institutional investors, major investors on getting more accurate information on gender diversity. i even went so far as to put in a bill that added another line that said just disclose how many women are on your board and it would end the burdensome to the industries, just another check or another number that would be added and this is information that investors are said to dick and stakeholders are asking for.

they are asking for this information. so i wonder where this stands with the activities. >> the time has expired but if you want to answer that. >> i am a strong proponent of the diversity boards and the studies you indicate that are quite telling what stands out is they are preparin year preparina recommendation to give to the commission pr alon along and tho provide more meaningful disclosure along the lines you've indicated. >> do you think you will receive it before -- >> i do not unfortunately. they made receded before. i don't think there will be a proposal before i leave. >> time is expired. the gentleman from texas. >> over here in the corner. there we go. >> you and i are kind of in the same situation.

this is probably my last hearing and i want to thank you for your service. yesterday the fcc held its first for him which included panels on the investment advisory service trading settlement and clearance investor protection capital formation. what is the next step? >> we've been quite active in that space in terms of doing outreach. some are on the plate right now and some are for the future. i formed this year in effect a working group that i've directed to make quite targeted recommendations to the commission on what the next steps should be at the sec in some degree of regulations that we have now that may apply to certain activities and how we can appropriately foster

innovation but also protect investors in space. the topics discussed yesterday are the ones most focused on. obviously does believe that the distribution into a settlement and clearing space, the so-called advisers that's not the name they like to apply about how the automated providers are not only automated often can comply for their fiduciary duties in the act and investment companies act and then marketplace funding those are the three areas we are focused on although the folks in the division of finance have also been reviewing and passing on companies that for example actually issue digitized securities. so we will essentially receive those recommendations. i don't think eminently but i think in the last few months and decide what you need to do next in terms of concept releases and rulandrulemaking's were just geg more clarity to the

entrepreneurs as to the spaces they may be in and need to comply with. >> so this working group recommendations that you heard yesterday, would it be their responsibility to respond to and -- >> certainly would be heard will be part of the analysis, part of the input of the analysis. the recommendations will come from the working roof to the commission. it is useful input for the set oa set ofrecommendations that wt to receive. ..

because as you know there are some exciting things going on in that space and actually some things going on that could revolutionize the way we did do some of these functions. >> i essentially agree with that and i said that yesterday in my opening remarks. we did put out the a release at the end of last year a request for comment on the transfer of space and asked questions just like back so it's a matter of there are some exciting things going on out there that will improve improve the market to improve things for investors. we certainly don't want to be

thwarting those but obviously we have to make certain that it's it's -- that investors are protected. the market landing in the space to make sure if in fact they are investors providing that money through offerings that they be given the information they do have side think it's a mixture of things it's certainly not with the mindset that we have to regulate, regulate, regulate. there may be clarifying we need to do but we certainly have the encouraging innovation lens but we are playing to that as well. >> are most of these non-depository institutions that should the sec be a primary point from a regulatory perspective for these companies? >> i think they range in terms of the nature of institutions of all but i think we should be taking a primary role, yes. >> the gentleman's time has expired. >> thank you mr. chairman and ranking member.

madam chair congratulations. sorry to see you departing but thank you for your service to your country. you did a remarkable job under the circumstances and i have a feeling that as far as your critics on the critics on the side of the aisle go i think they will miss you very shortly. i think we can all expect that. i know you were wrapping up but on market structure i had proposed proposed a make or take her conflict of interest reform act of 2015 last year and i know there was a competing proposal among an equity market structured by surrey committee that had a little different wrinkle on it. it didn't go as far as what i had proposed by to talk about lowering access fees which is a good thing. i don't think it got at the issue of the routing and the

conflict of interest in routing certain trades. going forward as he wrap up, is there anything percolating that might actually come to fruition in your closing month? >> i don't know if it will come to fruition quite in my closing months although we are really in response, not just in response but including in response to that recommendation that you referenced which is to do a pretty comprehensive pilot. we also have an outstanding proposal for transparency and order routing because we think that's an important proposal that's out there. the staff's recommendation to the commission is the next step to take and clearly we take very seriously and we think it's a good repose -- proposal we have gotten from our market structure committee but obviously we will be studying that as to whether

to do it. i think you got a lot of support for doing a pilot in that space and what precisely the component should be. i can't tell you something will come out before you leave but we are still driving it. >> a question of resources over the past at least six or eight years we have had a defunding or a lack of resources for your agency. can you speak to that a little bit about the practical impact of that defunding in the cop on the beat for financial markets had also morale wise in terms of trying to retain the best and brightest people at the sec? >> i will go to your latter first. important variable to obtain the

best people and attract the best people with the expertise as he needs to protect investors. i've said this before the biggest challenge i have had mr. chairman is just how significant land a resource we are and i appreciate we have gotten budget increases but look at what our responsibilities are how extensive they are and how complex they are and how much they been added to, the volume in the equity markets. for example i think 10 years ago we had 17 examiners for every trillion dollars of assets that are managed by asset advisers. we have eight now and i've talked mostly in terms of it so stark. our investment, our responsibility to examine investment advisers and identity thing i and i appreciate the support i have gotten when we get funding to really increase the number of examiners smartly in that space. i have actually increased staffing in that area of our

national program by 20% between transferring on the broker-dealer site where we have 10 rabbits operative in some of the funding that we have been given. we are still in the position come we are smarter in analytics that we examine 11% of those 12,500 advisers every year. 35% under management on the brokered side where we have finra so it's a big investor protection issue. of course it affects morale because you have some of the brightest most dedicated staff in the world at the sec. their lone star mission is to protect investors and we can examine those advisers who are dealing with those investors they have the duty to those investors. you are not able to do the job you are assigned to to do by congress and so much to do to fulfill our mission. >> my time has expired and i want to thank you for your service to the country.

>> thank you. >> the time of the gentleman has expired. the gentleman from missouri. >> thank you mr. chairman. i want to add my kudos with my colleagues for your service and your response of this -- responsiveness to this committee. we wish you you well from here on out. comment first and i want to ask you to comment if you would pay understanding of announced your departure that you are still a ce chair and i want to raise one issue in hopes he will give thought to credit agencies. an obvious ec is addressing entrenchment of incumbent regulations but i think more needs to be done. we should fill the broader competition amongst -- amongst credit. i know senator scott and franken among others have raised this issue with you and the sec on work has shown that this lack of competition has the potential to harm investors. your job to protect investors and i hope you'll give this issue all due consideration. i'm certainly going to be in

touch with your successor and staff on this issue as we go down the line. i realize it's a general statement that if you'd like to comment i would certainly offer you that opportunity. spinach is replete clearly clearly that's an area we continue to focus on. we have done a number of reforms that are very important to have done for government transparency conflicts of interest. we have seen some improvement in competition but it's still a major issue. a very difficult one to come upon an optimal solution for it i think in a effective way but also way that actually deals with the issue that you are trying to correct for. it's something that our economist continued to study as well as our policy staff. >> i know if you watch the movie the big short there was a lot of of -- it was very graphic on how the problems were created and what was going on and obviously this is the point we need to shore up with regards to

allowing investors to have confidence in our bonds in the ratings of those who appreciate your consideration. the chairman a while ago mentioned also something about pending rules. i guess my question would be do you have any requests for the administration or do you have at you have a dscc any ideas of any midnight rules that you are getting ready to propose that we need to be watchful for or are we going to come in the backdoor that we need to be thinking about? >> essentially our agenda for 2016 in february of 2016 and the chairman will usually talk about advancing a number of those priorities. i said we would do as many of them as we could and we have also, we have essentially set the agenda for the rest of the year and into january. i don't see any last-minute rushes. i do intend to carry out the

agenda i outlined in february 2015 as much as i can. >> okay. in the bloomberg report this morning there is a report headlined u.s. consumers are increasingly defaulting on loans made on line and the story talks about clinton sees and defaults reaching key levels known as triggers for at least four different sets of bonds forced lenders or underwriters to start paying down months early. i guess my first question is are you aware of this with regard to the on line lending loans that secure these bonds that are having problems? >> i'm certainly aware of the reports of those issues. our space is the investors in the space, not the lenders but obviously they become relevant in terms of what are those assets underlying investment. >> i would say they become very relevant. in the article it talks about forcing companies to overt cash

flow assets to pay out bonds for new loans to scale back its business. if you are going to enforce them you change your business model and to me that's very concerning. are you considering any actions to investigate further or are you just kind of watching? >> we continually, studying the space to the extent that really impacts what we are doing and the offerings made and the fact that raising the money to provide the funds to lend, disclosures. >> what kind of notices or disclosures are required? do you have to send those out to investors? >> yes, you have to make very specific orders and sometimes they are public offerings and sometimes they are private offerings. i think i mentioned that yesterday it's very important that information talks about the

underlying underlying loans and inaccurate way. >> i'm sure you are monitoring this. where do you see this going? is this a blip on the screen or a bubble getting ready to burst or is this a trend or what do you see? >> without putting an umbrella characterization on it i think we have seen an increase in those concerns in the last year. that may be because more information is available and it's something where we are watching very closely. >> thank you and thank you mr. chairman. >> the gentlelady from new york is wrecked nice for five minutes. >> thank you very much. chair boyd i want to congratulate you for finalizing the mutual funds data reporting rule. the rule would get the sec an important window into the industry while at the same time preserving the ability of the industry to manage portfolios

and managed to serve clients without constraints. given the vast amount of new information that the commission will be receiving, what special resources is the sec committing to protect the data from cyber crime and all who will want a proprietary investing information? >> it's been in our budget request for certainly the year since i've been here since i've prioritize their data security obligations both with respect to the new information we are going to be receiving their come of the existing information we have an also relevant to what we are doing this afternoon with respect to the consolidated audit trail. our budget request for 2017 and when it's finalized for 2018 you will see resource requests specifically for that purpose. >> thank you. yesterday commissioner said the

sec should take a look at think tank regulations. last year i sent you a letter expressing my concern about regulatory uncertainty in this area and to better understand the need of your agency now and in the future. i know you are stepping down soon. do you have any final thoughts on this geographically growing industry and the role you will be playing in the next few years? >> i agree that the sec and its space, and there a lot of them said turk -- certainly take the lead to be proactive. if i remember your letter i addressed it in part market landing platforms. we are uniquely among regulators that are involved in those sensitive issues focused on the investors as i just mentioned if in fact that's how the funds are raised to lend.

when we don't act as an terms of the lending standards are the actual loans that are made. i see the sec playing a major role going forward and all the syntax spaces. >> i am glad to hear that. thank you. you and your fellow -- have spent years with the volcker rule with a mandate to eliminate trading with federally insured funds. what happens to the volcker rule is eliminated and banking entities that have access to the safety net are once again allowed to make risky predatory trade. >> i think the reforms that are contained in the dodd-frank act are enormous lamport and strengthening our financial system and the protection of

investors. obviously the volcker rule is a significant component of that so i think we are much stronger stronger and more resilient than we were before the various reforms in the dodd-frank act. so i certainly would not want to see those presented are repealed. >> thank you and i was happy to hear about the sec's recently adopted rule regarding interstate security offerings. it has the potential to cause small businesses where they live and work. outside the interstate offering are there any other areas that the sec is or should be looking at to streamline multi-capital formation? >> as you know we fairly recently and that the jobs act preformed and expanded regulation board the regulation. we have a proposal that's outstanding on what the definition should the in the

small reporting companies so if there was an adoption of that you would have more, smaller companies that would scale disclosure. our disclosure reviewed keys of various issues about the scale disclosure for smaller businesses. we were very pleased to recently adopt the interstate amendments to our rules to make it easier for small businesses to do intrastate offerings including in the crowd funding space that is something we had our annual forum this week actually we will be talking about more avenues to try to facilitate raising capitol by small businesses. >> thank you and thank you for your business. >> your time has expired. >> thank you mr. chairman. i appreciate that i might too want to echo the sentiments of my colleagues, thank you for your service and your efforts and coming in and being honest and forthright within the

constraints of what we are dealing with. i am concerned about something that has been brought up at the much cited commissioner concerning activism really overriding market soundness and in some cases common sense about how we regulate and make sure good business decisions and regulatory decisions -- we have tons of examples that pay ratio in political spending disclosures. you talked about that so how do you guard against that is really my question. >> there are several things you have grouped in there. a couple of them are congressional mandate and i talked about that before. they do regard my job to carry out congressional mandates. they are passed by congress but we carry them out as an

application we try to do it in the most cost-effective way we can. it's our mission but they really come from congress. >> how about those things that don't come from congress? >> and it's something we don't do also because of the concern you mentioned and as far as i'm concerned since i have been chair we know what our mission is. i make a judgment myself as to what is the right thing to do. we take obviously and put about that but ultimately make that decision based on our initiative and capitol formation. >> very specifically then, there are two commission seats currently open one in luetkemeyer. my colleague started going down this road and i guess i would like to get a definitive answer. i would like to get a definitive answer, period on that. but there are reports that regulators are trying to quote

rush to finalize the incentive compensation rule prior to president-elect trump taking office. will you commit to us here that you will stay in commission vote on that rule after the inauguration? this is a multi. >> i understand. the multiagency. i think a proposal was issued by the agency in may of this past year. the staffs are clearly working through the comments on that. it's not a new issue so i can't commit as i said what the timing would be other than to say -- but i hear what you are saying. >> regardless of the timing they may or may not have it done. the reports are there rushing to try to get it done and what i'm asking for is a commitment from you that you will then not vote on this or not allow a vote on this from me fcc to implement that. >> two things and i will be as

clear as i can on this. i don't think any pro making benefits from it being rushed. it's hard to do it right and it's harder to optimally and i really enjoyed rule makings to make sure our economic analysis comes into play in her expertise comes into play and i certainly will commit to do that. i think i can't judge in a vacuum for the next two and half months. as i sit here today. >> if you are satisfied we have another one minute and 15 and we can keep going back and forth. are you saying if you are satisfied that they have gone through and properly vetted this you would have no problem moving ahead with that? >> again that's me too. what is always an issue there is the content of the rule

obviously in terms of being satisfied with it but it ought to get a commission. >> of content and context, correct? >> let me say this it this way, interesting completely the sensitivity that you are raising in terms of the time. makkah we are in. i will say that this is something that has clearly been proceeding a pace all year. it's not all of a sudden preceding a base but i'm absolutely sensitive to what you are raising. >> okay. 15 seconds, are you willing to commit to not vote on this? >> i can give you commitment and if vacuum. think i have said all i can. >> i guess i would like to hopefully emphasize your view that rushing into these things is a bad path to go. >> i think rushing into anything is but certainly i take your point on that. >> okay, with that i gave it a shot. thank you mr. chairman i yield back.

>> we are going to rush over to the other side mr. scott. >> thank you very much mr. chairman. chairlady mary jo white i wanted to know that i think you have been one of the very best chairman of the securities exchange commission in the whole history of the sec and we all want to thank you for your service. you are smart, so tough and many people don't know as a former prosecutor you show that toughness when you took on john gotti the big mafia boss and brought him down and you show that toughness when you dealt with the world terrorists that attacked and bombed our world trade center in new york. that same toughness you brought to the sec as she stood up and supported dodd-frank as our main instrument to prevent any future

taxpayer bailouts of the financial sector. so i say congratulations on a job well done. now let me just ask you something. about six weeks ago this committee had a hearing about wells fargo and the scandal. now it's my understanding that almost three years ago the sec did an investigation regarding the aggressive selling of wells fargo. is that true? >> i can't comment on in the investigation we did or might be doing but i think what you are referring to in the reports that i've seen and again i'm just commenting on the reports that i've seen referred to our division of finance and in their comment letters.

>> a few years ago and perhaps as many as three years ago somebody informed you about this cross-selling. >> again with the sec looks at in the actual cross-selling practices obviously is not the sec's jurisdiction. the bank regulators disclosures are within our jurisdiction. >> now we have a new report that the sec is again investigating wells fargo's cross-selling practices. is that true? >> again i can't comment on whether and what we are investigating. again you know what our jurisdiction is. >> what i'm trying to get at is you are doing your job and i certainly respect your comments on that but i think it's very important to show that the sec has been on the case and has

been dealing with this in the best interest of the american people so could you just maybe tell us, tell the financial services committee how the investigation is proceeding and what can we expect, and a conclusion? is there any input you could give us? >> i'm afraid again i really cannot as we don't comment on whether we are investigating or what we might be looking at if we are. i just can't do that in any case. >> okay. i am the ranking on the commodities exchange and derivatives subcommittee and i've been constantly assessing the numerous rules surrounding derivatives in terms of equivalency on the world stage. my committee handles the

jurisdiction of the cftc and of course you are involved in that as well. now a major concern i believe is on the equivalency issue particularly with the european union. i want to know what the status of that is and i also want to get an idea of how you feel this exit of the largest market within the european union, great britain's exit from the european union impacts this issue of equivalent -- equivalency? >> the derivatives market are uniquely global and that's why these issues. assisi security space swap space is under the rubric of substituted compliance. when can we and can we not accept other jurisdictions rules to satisfy our rules?

are staff is involved in that in the cftc has been as you know and vault earlier in some of those discussions and in terms of the uk that's still sorting itself out. the concern is that needs timewise to be put back on track so those rules can work together and be effective but we are in a stage now where everyone is very focused on those priorities and the discussion still go on. >> best wishes to you. >> thank you mr. chairman. chair boyd welcome again for your last appearance with us as a chair. i want to join my colleagues. i have not been the biggest fan of the administration and how they have complied with congress as requests for information, how witnesses have come in and testified before this committee i think has been obstruction or a at the least bit that has not

been the way you have run the sec and you have been frank and honest incorporated rate i think you have come in and try to answer the questions that we have asked of the best of your ability and i think you are a standout and how you have run the institute in how you have engage with congress i want to thank you for that. i think it's a job well done into the clear we don't agree on anything and that's understandable but i think you have done an excellent job. >> thank you very much. >> i do want to go into our concern with what is going to happen in the next two months and we always get concerned about the lame-duck session of a presidency and a rush to implement a whole bunch of new rules and i think the better practice would be to let the administration come and. we have kind of done a little dance but what rules do you want

to see finalized? am talking about you personally. what do you want to see finalized in the next two months? >> again we are not rushing in my view anything so as far as that's concerned. we did set up the agenda earlier in the here year and their agenda for the rest of this year into early january has been set for some time. think other than this afternoon which has been sunshine and publicly notice we will be considering approving the final consolidated audit trail plan a publicly notice the others of that we talked about internally in terms of scheduling. some that i have mentioned in terms of year-end goals include the capitol margin segregation rules under title vii, something by the way that both of my commissioners have firmly

supported. my current commissioners in my part to mr. sim. that's one i've noticed publicly. i noticed in my oral testimony that we do have an outstanding dervishes proposal may asset management space indictment and publicly before that is the priority. we are also looking very carefully at what the chairman mentioned in terms of e3 in terms of providing mutual fund reports electronically. that's something when we adopted the reporting rule but for that i said we were focused on trying to have the stats give us final recommendations as to what to do i think those are the ones i've mentioned publicly. >> we have blown through most of the timelines set under dodd-frank. there we go six years in the last six weeks i think would not

be the best practice. i would like to see you hold up as much as possible unless it's an emergency for the next administration but that's just my opinion. i live a minute and a half left. i want to thank you for your work on the pilot program. you saw what happened with an outstanding book on this committee and on the floor. you took it upon yourself to implement the pilot program and we are grateful for that. we want to give some of her companies greater access to capital but as you may have heard some will expose their trading strategies. can you ensure the committee that you will ensure that the data that is provided will be protected and can need give those who participated that insurance? >> i have heard those concerns raised. i think i said before an answer to another question the security

of the data that should be secured could be a higher priority in every space including the pilot. >> i want to move over to shareholders proposals. shareholders only need $2000 worth of stock to submit a shareholder proposal for inclusion in materials precondition the shareholder proposal need only receive 3% of the vote cast the first time in six to 10% in subsequent years respectively to qualify the next year. this hasn't been updated for 50 years. do you have any thoughts on whether we should be updating these proxy submission roles? >> again i think everyone knows the agenda in the last three, four or five years. that's obviously been discussed for several of those years i think it's very important for staff to refresh what their recommendations are in that space. i will say there are very

diverse views on that. for example the 50,000-dollar threshold was originally put in deliberately small so you could allow for small shareholder to have that kind of franchise participation. as you say that was sometime ago and i'm also obviously aware of the issue on how many times and would vote you get on the proposal. i think you will see the sec returning to that. i don't think anything will come out during my tenure. >> my time has expired do want to thank you again and thank you for your great work and your work with congress. >> i yield the floor to mr. green for five minutes. sarah thank you mr. chairman and thank yous chairlady for your service. it's been an honor to work with you and my hope and prayers are that you will be equally as successful in the next life as you have been in this one. thank you. madam chairman if a bank without

eating specific, if a bank creates a circumstance such that it gives the appearance of being in a growth mode by engaging in onerous that takes by giving the appearance that it has more customers than it actually has, you are in the business of taking investors. the bank is giving this false sense of growth. is this the kind of thing that the sec concerns itself with? >> again talking in the abstract. >> very general terms. >> that is very much in the disclosures to the public investors, we will phrase it that way or the accuracy of them

is very much in the sec's space. we bring cases in our foursome of division on misleading material disclosures all the time. a lot of those cases and so what you look as you mentioned was their growth are not growth? we obviously look at quantitative materiality and quantitative materiality so instead of a prophet there is a loss. you may have qualitative materiality issues even if it's not a big amount so you would to apply those lenses to disclosures like that. >> and when the circumstances manifest themselves, does it take the complaint from many protectors or investors or do you do this on your own motion on your own full lishan? >> we very often do it on her own lishan. we are constantly surveilling the marketplace and the market

marketplace of public information. we also have our own data analytics so often we do it ourselves. obviously we have a fiber and whistleblower program. we don't have to wait on a complaint to act. we are very proactive. >> when you do this on your own full lishan is it published that you are engaging in this process or is this something that happens and then we are accorded the results as opposed to an indication that the process has been engage? >> if we are talking to think we are an investigation that we would be doing in our enforcement division for example and i think that goes back a discussion with congressman scott. we did not disclose whether we are in this to getting something or what we are finding so you wouldn't see that and if it

resulted in action. sometimes only to open an investigation the companies that they are public companies we will disclose the fact that the investigation is ongoing. that is their call based on their. of what is required in what is prudent to do but you won't hear from us if it's an ongoing investigation tell there as a result typically. >> i'm going to come back to this but i'd like to go to another point if i have time enough to do it. do you find it there is a conflict between what your agency has in its responsibilities with the cfpb and its responsibilities? >> i have not found that during my time as chair. i have worked cooperatively with all other civil and criminal law enforcement agencies so could there be overlap? you try to work out any comfort that you have. there is an awful lot of space to cover.

different agencies. >> you would not recommend elimination of the cfpb? >> clearly it's been a very edit active enforcement agency and there is a need for a lot of active enforcement agencies. >> thank you. my final comment will be this. wells fargo engaged in conduct unbecoming of a bank or they took advantage of people at the entry level of their business that benefited the people at the top of the business and as bad as that is it also cause caused people who were making what they thought were honest investments based upon quality information. they allowed allow those people to make those investments to their detriment. my hope is without getting into what you will do is that wells fargo will be treated fairly and justly and also those investors

will be treated fairly and justly. thank you very much. >> a few. mr. pittenger you are recognized for five minutes. >> thank you mr. chairman thank you chair white for being with us. i must say we clearly would have disagreements. you have been very respectful and very straightforward. you have been professional in every manner so i commend you for your work. >> thank you very much. >> i would like say an anecdotal reference is made by your leaving. did you make the decision to leave prior to the election? >> i did and the last 50 years or so the chairman of the sec has left when there's an election irrespective of which party is coming to into power. i've served for almost four years so it's a normal course decision. fact i might have mentioned that i was coming in here today so i thought clarity was a good thing

for coming today. >> there were some inference made that you left because of some individual that was made president. chair white as you have made an effort earlier this year with 50 other members of congress relative to concerns that failed in the chicago stock exchange, the chinese affiliated firm as well as just two weeks ago my staff met with an sec commissioner on this matter and he expressed some of the same concerns regarding the corruption inside the chinese firms as well as their complacency and the lack of transparency within them. given china remains the number one state sponsor of espionage and intellectual property theft and market manipulation we urge they rigorous review of this transaction. would you kindly comment on this

in your opinion relative to this transaction and your concerns whether chinese affiliate firm should buy the exchange given it does play a more minor role in the our kids albeit a foothold into our markets? >> i think the issues you are referencing our cfius issues. we do have a process that follows that hasn't begun yet so i wouldn't want to particular comment on that or prejudge that >> i understand. chair white you have previously noted quote and enhancing market structure we must focus closely on the particular needs of smaller companies and their investors. what do you believe are the most significant issues that smaller public companies face in today's equity markets for example reducing liquidity. i'd like you to elaborate on that. >> one is obviously been the availability of secondary

liquidity. i also in the public spaces, think we have to be very focused on are any of our regulations such that again they need to be there, they need to protect the markets and investors but are they unnecessarily inhibiting companies, smaller companies from going public? >> thank you. i would like to ask you in borrowing equity financing which we have discussed some but do you agree tightening of credit has made equity financing all the more important in the capital that they need to grow and expand to create jobs? >> i yield back. >> the gentleman yields. you are recognized for five minutes. >> thank you so much

mr. chairman and thank you chair white for being here. we are more than six years out from the passage of the dodd-frank act. too many many rule-making said yet to be finalized despite the ample time that has been afforded to our regulatory agents. one such rule-making relates to sex at 956 of dodd-frank. this imposes large financial institutions the responsibility to institute clawback policies or policy that would allow the financial institution to snatch incentive raised compensation away from executives that engage in wrongdoing. democrats on this committee wrote to you last month asking you both to work quickly to finalize the rules and to strengthen them.

i'm now a hearing that this rulemaking may not the finalized anytime soon. indeed as it relates to the sec dare reports indicate that the soul republican commissioner of the sec has refused to grant a quorum or commission but when it comes to many rule-making he objects to. the commissioner reportedly won't even show up instead choosing to not attend the sec meeting at all. is it correct that the public commissioners threatened to deny a quorum and thereby prevent a commission vote on any particular rules including the clawback proposal? >> every rule that i put on the agenda we have had a quorum for so the republican and the democratic, we have all shown up for those.

in terms of 956 the. proposal that i think was in may of this year, we moved that by syria out of so there was no need to block or have a quorum. >> where is it now? >> image before they think it's been discussed by other regulators all of the regulators and there are five or six of us, it's a joint regulation working through that read proposal. >> thank you for that. last month reported that the sec questioned wells fargo overaggressive cross-selling practices in late 2014. the as you know the bank's cross-selling practices as it related to deposit and credit accounts as long as on line

banking eventually were found to be unfair, to set the bin abusive by the occ to the cfpb in the city of los angeles. to the tune of a combined 185 million-dollar fine. can you tell the committee what prompted the sec's inquiry into wells fargo's cross-selling practices two years ago? >> again in terms the practices themselves that's obviously not in our jurisdiction at the sec. think you are referring to our reports of our division of corporation finance. as part of their annual review of financial filings. lots of public companies raising certain questions about the disclosures but that's not sort of the content of the crossroad practices. i think it raises questions about come i can't go beyond

whatever public record about the comments but i think that's the first. >> so that was just routine inquiry on may part of the division of corporate finance? >> again i can't say anything more specific than i have but it does appear to be part of the annual review process with questions being raised. save routine part of what we do in a very important part of what we do. >> what was the outcome of the inquiry? >> again as i understand the comments may have been issued on the disc loge or, questions and comments. i can't tell you what the outcome was in that sense of the word. >> earlier this month wells fargo announced va regulatory filing that the banking was being scrutinized by the commission related to disclosure surrounding practices. how does this differ from the 2014 inquiry? >> again the disclosures they

have come i can't comment on whether we are investigating or what we are investigating. i did point out before that obviously public company disclosures are something that we review in our annual reviews like we were talking about before but if we have questions about them they come under investigation. can't really say any more than that in than the company itself has said so far and really can't comment further. >> thank you for your responses and my time is up. >> the gentleman from california is recognized. >> thank you mr. chairman i thank you chair white, thank you for your service and thank you also for always having your staff and yourself available. the focus of the sec originally was and should continue to be the strength and resilience of our markets and i think that's critical to economic growth and to the jobs that are created

thereby but when it comes to capital markets lending i have got a question about, about the last few years and maybe some reflection that you would make because we had a lot of changes. major regulatory changes such as risk retention. we have had the accounting changes and credential changes and new capital liquidity rules and new disclosure regimes, automated trading platforms and all of this is occurring at the same time. european regulators have raised concerns about how these new regulations fit together. this is the crux of the question here because specifically on its way out the door financial services chief jonathan hill included -- concluded that

whereas after 2008 the greatest threat to financial stability have been the financial crisis. over time the greater threat have become the lack of growth itself. in other words too little risk itself in his words became a stability risk. and then he went on to say that the crisis may have made the scale and the pace of change inevitable that the various layers of regulation could have been better a line. that was his reflection i was just going to ask you yours in terms of whether you agree with that sentiment. if we step back and we reflect on the qinetiq impact of all these regulations and carefully understand what this means for growth in lending before we move forward if major changes what

would your observations beyond that? >> i think in terms of the impact, let me back up to the threshold. capital markets are an innovation built on taking prudent risks with factors fully disclose so that's obviously a very important driver of growth of the economy and everything else. obviously one has to worry that if we do systemic risk it could destabilize the system and cause tremendous harm to investors. think in terms of the impact and regulations it was mentioned earlier that our economists at the sec are studying and will be reporting to congress next year on the impact of cumulative impact of regulations like capital formation as well as corporate bond that validity. something we study all we study all the time but when we do our rules by the way our economists to study the economic impacts and they do look at not just the

particular four corners of one rule and what you are changing their but you have these other nine rolls out there so when you add this one what is going to be the cumulative effects on all sorts of economic impacts. it may be a benefit for investors and may not be the ones the cost of an one of the cost may be the cost of growth so you want to be concerned about that. >> like i have said i think the financial services chief john hill is in wretches backed looking at this but at a time whereas you know they are still more coming down the pipeline and discussions continue on fossil we have the proposals on the review of the trading book. so i assume you share so that or verging -- overarching goals that we need to balance safety and soundness with the needs of

market liquidity, efficiency and overall economic growth. >> my view is that's part of the cost benefit analysis that we do as i said before what he do that that's primitive part of it. >> i appreciate your observations and your service. thank you very much. >> thank you very much. >> thank you mr. chairman. madam chairman thank you for all of the hard work that you have done and i particularly want to thank you and i will ask you a few questions later with regards to making sure that our -- become more diverse. first i want to ask you that the question that i think i heard my colleague mr. clay talk about it in a few other members as well,

this whole wells fargo issue. what concerns me about it especially coming out of these elections and i heard both democrats and republicans from urban american. [roll call] america, they are losing faith in the honesty at times of some of our financial institutions. now i know that our financial institutions are absolutely essential to our well-being and our way of life but the common everyday american is the question the mr. royce asked. they don't get into the depth that you do in the sec does but they asked me on the consistent basis, how do we find out if someone is doing something wrong before it has the impact that it has had whether it be the employees or the consumer wells fargo? i would like to ask you as you are outgoing what kind of advice would you give members of congress or your successor on what we can do because even the wells fargo scenario it wasn't

the sec that discovered initially, it was the "l.a. times". so then they put the question on where we go with reference to our regulatory agencies and confidence in them that they are going to in fact be there to protect the american people and to make sure that the banks are honest. what would you say that. >> again i can't comment specifically on wells fargo other to say -- other than to say the cost selling are not in the jurisdiction and i say that with 30 but the broader issue you are racing which is really impart a corporate culture set of issues. it is impart a more how do we strongly deter also this conduct in our companies and financial institutions? i have spoken before and i'm going to speak again in a few days about things i think we need to be considering. one of them as the penalty is

always for the sec but more on the mentally i think the question we have to be focusing on is accountability at the senior executive level for things that may occur on their watch even if they are not involved in misconduct the misconduct and how do you infuse this do the right thing culture throughout the company. we have mandated those for years. it works better in some companies than others in terms of what is said a neighbor what is done. i read something recently that resonated with me at least that when you want your employees to behave in a certain way you have to focus on what you are inspecting and not what you were saying and what your wording in what you are punishing. if you end up with incentives misaligned don't be surprised if you get misconduct that's occurring. we are working on that all the

time. the use of data analytics in the data available out there to make us smarter and smarter earlier about what may be problematic conduct. i think the whole set of issues that we have to think out in congress too has to think outside the box about to raise the bar of culture and compliance. >> on that one of the things that, and that's why i appreciate your diversity initiative you have taken with the sec because i think when you have a more divorce -- diverse port you have a more diverse self-interest. that would be the hope. in this scenario, one scenario do you think it's a conflict that companies can go when you have an individual who is both the ceo and the chair of the board? it seems to me sometimes the

chair of the poor can check ceo and there's a balancing act but when you have both it seems to me that could lead itself. >> clearly it raises all those issues. the fcc -- sec doesn't take a substantive policy issue on that. that's a matter for state law. clearly. >> it should be something that is considered and when you look at it raises the flag and you save a thousand questions about it and see for red flag presents itself. >> the gentleman's time has expired. mr. hultgren is recognized for five minutes. >> chair white thank you very much. i appreciate your service very much and wish you all the best. ..

really bringing in a lot of expertise points of view, and also reinvigorating the equity market structure. they have been enormously helpful in keeping the focus, our feet need to be kept to the fire, but in a very laser-focused way, to get concrete changes if they need to be made. in terms of their recommendations, the sec needs to decide, not the committee.

they are dealing with the issues we are dealing with, the most serious ones out there. everyone at the commission across the boards, there's a lot of unanimity about this, when you get to the bottom of what enhancement should be made to one of the strongest and most resilient markets in the world. there's a lot of momentum to have these not sit on the shelf. that's all purpose of that structure. >> to our some concerns here. in response it was noted in january 2011 the sec issued a reimbursement when it was exchange.as a pacific why would another exchange such bechicago or nasdaq not treated to the same under the law and the statute for clarification, but it is clear the commission has already established a precedent.

is that we are still waiting on word, really, wem omb and counsel as to if can do this without a ix.islative f i kept biggs what the analysis was, but the current analysis is we don't have the authority to return those fees. is there -- here there is bipartisan support. in the fairness any significant. in the scheme of things, we would appreciate your help getting this done. march 25, 2015 the sec proposed -1.ndments to rule 15 b

you stated the rulemaking would be finalized in the near future to share the commission's goal of proper oversight. there are concerns the rulemaking does not contemplate the impact on the options markets, option market, and .xisting regulatory structure i would review could provide an update on the status of the rulemaking. i hope this is something we can continue to discuss. thehe status is, among comments, carefully studying the impacts in all areas of that. it is moving along in that analysis. there is not going to be an imminent adoption. >> ok. earlier in this hearing, you mentioned to congressman neubauer when he was having some questions and discussion with you that you formed a working group to make recommendations to the commission in regards to fintech issues. can you please tell me when this working group will make recommendations to the

commission? and what questions you have tasked them with answering. >> i cannot give you a precise time. we have done extensive outreach. an fin tech forum was important outreach, and we are doing extensive outreach encouraging participants to continue to engage with us. timing wise, i would not call it imminent. across the fin tech spaces, they are tasked to touch on sec functioning to make recommendations, concrete recommendations, as to what the commission needs to do. rulemaking, i start there but that is not the primary focus. do we need to clarify to entrepreneurs with a need to do. having in mind that this innovation could help the market and investors. we want to encourage that, balancing investor protection.

we could have concept releases, interpretations, staff guidance, recommendations for rulemaking, messaging more clearly to entrepreneurs their existing requirements. we could say that our existing regulation is adequate in part to these issues. an exciting space, lots of potential. i think we are doing it the right way. >> again, thank you for your service. i would go that any future policy making would been a from industry input especially in the fin tech area. with that, i yield back. >> the gentleman is california is now recognized. >> one request, we put up a $19.8 trillion graphic. we had below with, plus for $1 trillion president-elect trump's infrastructure program. madam chair, my request, of you, i recognize your hard work. i can recognize you crossing off the days to an extended and

well-earned vacation. the tradition is for the sec chair as understand it to resign when the new president takes over. that tradition was developed at a time when that a more efficient senate and be more efficient congress in general that could quickly confirm your successor. that tradition was developed before the chair sat on fsoc , which should not have an empty seat. you have 2 important seats at f sock and the commission. and the commission. i would encourage you to stay on until your successor is confirmed. i ask you to think on it. turning to more mundane business, you still have .roposed rule 30 e-3 only folks in the financial services industry that cannot provide information electronically are mutual funds.

they promised if you pass this rule you will save 2 million year.every on behalf of those trees, can you move the role? -- the rule. about the agenda with my fellow commissioners, but that is one of the areas where i indicated we would hope to get a recommendation by the year end. >> please inform me electronically of what you are able to do. to small business , the housecompanies appropriations committee has asked you to reopen for comment your proposed rule in that area. do you see reopening that comment? >> what area? >> the area of small business development companies. >> in terms of that, the staff is working on what should be

done in that space to modernize, but i don't think, i don't know know if we are reopening a formal comment. i have to get back to on that. i have written about that issue.

so i would like to ask you as you are outgoing what kind of advice would you give members of congress or your successor auditing consists of defining the terms and auditing the information. we do a great job of looking at numbers like revenue expense, assets, earnings-per-share. we have a whole system for those numbers. there are bunch of other important numbers, it might be the backlog of a manufacturing or aircraft manufacturing company, it might be same-store sales, and i wonder, in your closing days or perhaps on your

to do list for your successor if we could have a project to do the same thing that we do for the numbers in the financial statements for the numbers in the supplement, what i hope would be a supplemental audited disclosure relevant to certain industries, because when i look at macy's or nordstrom, my most important number might be earnings-per-share. great job, clear definition. they can't change the definition year-to-year within the company is comparable between the two companies. then i look at same-store sales and it's as loosey-goosey as it gets. one hundred years ago we developed a financial statement, can we move forward to have industry-specific, perhaps voluntary or required supplemental, numerical disclosures with generally accepted, which means sec defining and have the public accounting companies that have spent a hundred years just auditing two or three pieces of paper, audited a few of these numbers. or are we in this bizarre circumstance where some of the numbers are audited and defined and some are not?

hon. white: to some degree that is correct. i usually done a lot of work on measures that are currently audited and we get a lot of guidance on that. same-store sales would be audible. in terms of adding it to something that would be required in terms of the cost-benefit of that, but i think there clearly is not consistency in that space. it's a metric that is not paid attention to so well raised. >> thank you mr. chairman, chair white, thank you for appearing before us and i also want to lend my voice to thank you for your service as you prepare for whatever comes next. we wish you the very best. with the election results there has been a lot of discussion and dratted sizing about the department of labor fiduciary role. one of my favorite topics, as you well know.

i wanted to ask a question regarding that as we look forward to next year. earlier this month they announced it would no longer allow customers with commission -based ira to purchase mutual funds. already choices are being taken away from customers. are you at all concerned by the impact on the retirement services market that the sec oversees and regulates. >> well, i think we are all concerned about anything that results in depriving consumers of reliable advice. think we've expressed that before. markets do adjust to rules. we are obviously talking to, where we overlap, various effects of the department of labor rulemaking and our job is to coordinate and provide relief if we have the authority to make sense to minimize impacts, but that is one of the impacts that the department of labor certainly asked a lot of questions about and we've talked about before. they ask a lot of questions

about. >> merrill lynch isn't the only company to announce major changes to the business operation including selling off entire businesses. are these impacts of the rule being considered by the staff as they develop a proposal to establish a uniformed fiduciary standard? >> dancer is certainly would be considered into the status is a staff was provided a detailed outline of how it would approach what is a very difficult thing to do to do well to the commissioners. i don't expect that. as i said before there is one vote on this and i don't think there is a consensus to move it forward in that commission. but it's definitely something that continues to be studied all impacts and especially those being considered. >> to that point, has the sec undertaken a specific analysis on the impact of the rule on investment advisers registered

with the sec? >> that is part of the analysis that is done continuously. there isn't a specific project that we would move towards a proposal or a rule and it would be definitively studied but also being studied as it happens. >> earlier this year before the subcommittee, david graham, director of the investment management stated an analysis of the potential impact of the uniformed fiduciary standard was ongoing in preparation to the draft recommended rule-making but made clear his quote was whether it is ultimately proposed and adopted depends on further analysis and action by the full commission. can you provide the committee any update on the staff as they push towards the stenosis and they have some closure on the analysis of the proposal will impact? >> analysis is ongoing all the time.

everything is up to the full commission eventually has to what rule to do with any of the contest would be. often when we do the proposals, we do significant economic analysis and then we do even more analysis before we decide whether to move towards adoption. i don't know if that is what he's referencing or not but it's a continuous process and you certainly complete the process before you would do a final rule. >> i know your tenure is coming to a close but -- >> this is something i've tried to make clear we would do this if we did it under dodd frank it has a certain perimeter int ands a hard complex rulemaking. i think that it's very important to do but it's something i don't expect there to be action while i'm still the chair and i think in the sprint finish and you won't see that advanced. >> i agree the jurisdiction in

this space is what is preeminent and important. i would just encourage you to make sure the analysis he publicly shared is shared with the committee before there would be any proposal of the bystander. >> it would certainly come out with a proposal that but i heat you're saying. the gentleman is recognized. >> thank you esther chair man and let me join my colleagues in thanking you for your service in a challenging time.

it was a letter about the persistence of the marvelous 7% growth in asking to undertake a study of the consistency of the pricing. it's relevant that we were all supporters and motivated because the jobs act was estimated to save one or 2 million a year. we haven't heard back and i'm wondering if we can get a sense of whether this is an interesting how we might proce

proceed. >> it is a point of significant interest and we should be getting a letter soon. i will say this much before you get that response there's some complexity in the data in the cost information with 7% for reasons that are not apparent in the data may vary across. there may be difficulty in a straightforward way. you've also got interacting in the states and th space and thee jobs act that were made to.

[inaudible] spin absolutely. my other question, there were a number of legislative proposals to define in the insider trading responding to the decision eminem in case that return to the prosecutors. i struggled to get either justice or any of the regulators or anybody to say that one way to remove some of the ambiguity i fully understand and we talked about this in the case law etc. it seems to me the clarifying definition of the trading and given the enforcement mechanisms and the judiciary some clarity

but i've struggled to get an affirmative agreement from the department of justice so i wonder if you could give me a suggestion. >> we have discussed this before and i think one of the concerns is the kind of various permutations of four illegal insider trading and defining that as a challenge. and again we are in a little bit different position in the department of justice with respect to domain because it has less impact for the burden of proof on that issue and we are watching what happens in the case before the supreme court. i think what i indicated before its we've basically been arguing in our case is quite a robust program including in the newman's piece is that it

impacts but narrowing it has been pretty successful so far. the personal benefit which in fact from the plaintiff view that comes out in the way that does provide the reaffirmation of what is required in that element but i think that we revisit the question either by regulation or by statute that we need a clear definition and then what should the definition be but i think right now we have done well. it's a consequential position in our space that we worry about in terms of newman and then if it comes out in th a way that reaffirms what we expected to the state of the trading wall is such that we can continue to enforce it. >> the gentle man yields back. >> i think that exchange is a

testament to your professionalism that you had before this committee and the knowledge base that you bring with you so i commend you for your 20 years of public service. i want to do a little bit of introspection and look a little bit of what fsoc has been doing. with the backing as widely taking the activities-based approach to the evaluating systemic risk in the asset management industry and many of our committee would like to see this applied to the insurance industry as well. can you explain why fsoc has applied the activities approach for the evaluating systemic risk to the managers but not the jurors?

>> i think what has been said as they don't rule out coming back to the consideration of the designation of firms in that space but i think the pitted at his referred to in the activities made great sense in that space. lots of the analysis on the insurance in history actually preceded being on fsoc or if the commission. it was a very thorough analysis in that space and i think that fsoc is -- and again, i think it's confident with respect to where it landed, but i fully understand the question and the argument that's being made. but the insurance industry was under clear authority to look at it in a particular way that they were confident in their analysis. you might get a slightly -- well, that is a pretty accurate assessment of thinking.

>> with respect to insurance, i'm a little curious about the role in the fsb and fsoc. there are concerns on the extent to which the fsb systemic risk designation process for non- banks is distinct and separate from god of the fsoc for the non- banks. the chair that testified before the committee in september argued against any allegations of fsb frontrunning based on the assertion that the gsi designation timeline was inconsistent with that narrative. do you recall whether it was the fsoc that was systemically important? >> it happened as i arrived i think there was designation by

fsb earlier i would have to get back to you on that. the process is separate and i was refused from the insurance companies so i'm less familiar. the staff that does participate extensively in the committees of the subject matter of what is being considered doesn't relate to the securities markets, we don't participate actively in those work streams. i can get back to you with what information we do have. >> in your role as fsoc, have you felt any pressure to enact the policies through the designations domestically? >> none whatsoever. >> the chair man yields. >> the gentle lady from wisconsin is recognized. >> thank you mr. chairman for your service, and thank you, honorable mary jo white, for your service and i wish you well

in the future. but you're still the chair, so we want to make sure that you use every single moment in your office to bring about the result of the american people. we have gone through some rough times in this country, and one of those rough times was when our market funds broke the bank and there were rules promulgated to float. since then, we've seen $64 billion in lost funds regarding that and if so i'm wondering if you've sort of changed your mind about the

efficacy of particularly the state and local governments not having anywhere to put these fun that we are already centralizing money indeed large banks and i'm wondering if you've go you havey further thoughts about that. >> one answer is we continue to review the impact of all the rules and one of the things i've done since i've been chair don't wait five years or two years to look at them and we've been following that very closely. i will say that this far, the impacts that would largely predict in our economic analysis for example the money market fund spaces in terms of an total is the same in terms of the volume size and color size and a

lot of the movement of the government funds which we predicted which the ammunition on the funds as they qualify might be subject and not impacteimpacted and a lot of ths to do with the money market fund rules into the movement has been the prime institution where it does apply. the answer today watching very closely to the benefit of the reforms that we instituted we believe was a systemic risk issue that is a large one and of great concern and i think that is something we are confident we have the further analysis but you need to have. so to possibly watch it closely we see a return to the prime institutional space over time but we have to see if that

happens. >> the sec put out a report on the municipal market that included if of recommendations including thaboverecommendatione authority to directly regulate the bond disclosures. you've been supportive of this report in the past. in this initiative where several issuers would find further disclosure violations we need to do more in congress on these recommendations. >> as we have obviously less direct authority in that space than the public company sector we try to carefully calibrate that so that we are mainly aimed particularly for issuers and changing the conduct and improving the disclosures w so e tried to be very measured their.

the underwriters measured also got there was a different settlement petrifying for them. we have seen improvements that we would not conclude that obviate the need for the greater authority and that is something as a staff it's a continuous process tha but we will be lookg at continuously, so we may speak further on that in the future. ..

>> that a true sense the fcc should take the lead in developing regulations for the technology center and encourage a regulatory structure to allow for innovation within the synthetic world. >> there several questions and that. i am supportive of the fcc asserting its jurisdiction in spaces that we are inches i think it's an ordinance that we we do that. were doing that consultation, and coronation with the treasury markets as well. i think we do a good job ofus. of no space us. we should be asserting our authority there. also think where we come out is yet to be seen in various issues. i had mentioned earlier that i had set up a working group some time ago to among other things come up with recommendation as to how the fcc should proceed. clearly having the lens of the

innovation is exciting and can yield tremendous benefits. we don't want to be stifling and what we do. we need to be concerned about protecting investors and what we do as well. i think think we have the right group working on it. i think we have the right mindset working on it. >> i was a little concerned when they made comments that indicate more about one-size-fits-all. i was glad to hear your comments a few moments ago saying one-size-fits-all is not the best path. >> again, just to be clear at the end of the day we have to make sure investors are protected but i think it is something we have to look at with fresh and open eyes and mind. >> going over some forms that you held earlier in understanding your gathering recommendations, from those forms, what was your sense in

the big challenge that small businesses are facing? >> there's a lot of challenges, think all of the regulators need to be very focused on. i think we are the fcc. you have startups in the spaces that were looking at whether it be automated advice, think of is watching one of the panels, one of the predictions is that will have more consolidation of automated advice givers also known as advisors and they would like that to drop from the lingo that is out there. you worry a bit about the smaller high-quality advice givers that might find it difficult to penetrate the market space. we are are clearly of the view that registered advisors whether automated providers soar -- are subject to the rule and have to comply with applications. one thing were doing in the exam

program is to see across the industry how they are carrying out the responsibilities, what we tried to do from that exam's share the learning and frankly hopefully that helps the smaller outfits but you cannot tell you. it's too early to predict. >> you may not be able to speak to the setting of your review and recommendations. did you have did you have a sense coming back from the private sector that been able to have flexibility and streamlined were talking one-size-fits-all multiple costs associated with redundancy to regulation that was something the private sector was wanting to encourage? >> i think think the private sector encourages it. whatever sector i meant it makes sense. one size, it sometimes sometimes one-size-fits-all in a certain range. most often if you have the ability to do it you want to tailor regulation to the

particular problem. >> as a final -- you wear couple of heads, would you support the fed the temp to usurp the fcc's jurisdiction as regulatory agency over the capital market? >> i would not. not. i don't think they're trying to do that. not since i've been here. >> thank you some much and thank you for your service. >> i yelled back. >> the gentleman yells back, the gentleman from maine, its main right. >> yes. i'm coming to maine. everyone is going to me. >> we can restart the clock and give an additional 30 seconds to speak about maine. >> i would appreciate that very much. you retirement from your great service to our country and thank you very much it does provide an

opportunity for you to vacation more. and maine as you know as vacationland. it's a great place to buy second home. with of to invite you as a taxpayer up there. either way would be great. >> never going to far. i wanted to cover three issues quickly. we have talked about a couple of these are ready, your mission that you pursue very aggressively is to make sure small investors have the information they need to make the conscious and important decisions to prepare for the retirement nest in savings or what have you, now you folks in rows 30 - three made a decision not to move forward with this rule and i'm very grateful, thank you very much. number one, we have a district

and may not a lot of folks that are not connected to broadband. there 60,000,000 americans who live in rural districts. in addition about 46 million for seniors 65 years and older who have a hard time navigating the internet. it's critically it's critically important to make sure that our senior savers and investors in rural districts have the information critical to make decisions they need. now we also make that paper in maine. this very fine paper are printed on up along the canadian border, 600 terrific jobs and i advocate for them all the time. i know all the wall street firms want to forgo the costs of buying the paper and printing on the paper and sending it out to investors. our investors need the information because they have no other way to get it. i am pleased and grateful that

you have not move forward on the role that would make it more difficult for seniors to receive this information on paper. my question is what you just redraw the rule? >> we discuss this. and what i've said at the time is we actually adopted the rest of the proposal for investment company reporting was we had next tension, important comments or long the lines that you have just made but i wanted the staff to study further and then come back to the commission and basically targeting your end after that was done we're looking at who is paying the bills to get better cost data. that undertake is actively proceeding. that is something and, some were

well taken. i cannot tell you where the commission comes out ultimately or precisely. >> the decision will be made you expect by the end of the year before you move on? >> of spoken publicly at the open meeting that we are targeting year-end for that. >> let's move on in dealing with the role of asset managers. a couple of place have already been asked. we may disagree on this but if we both read pension management firms in a heat fit my performances better than yours, your clients will come to my shop. but the assets held over so if your firm gets in trouble represents no risk to the economy. the fact that you have adopted a new, more aggressive series of rules to make sure you aggressively examine our management community and you are

the primary regulator for the pension fund managers and those that run the college savings plan, why don't you recommend that you take the potential designation of asset managers is too big to fail off the table, do you need it anymore? >> i think it's enormously important safeguard system to have it to their it's really to have possible risks down the pipe. so taking things off the table you are charged with looking at it. there's a significant pivot to activities which made sense, i think the efforts today are complementary of what were doing. >> the concern i have is that if any asset manage that represents no systemic grace to the economy so designated there be a layer

upon layer of new regulations that'll drive up the cost and drive down the rate of return of small investors trying to save for college of the retirement. it would be terrific if you can use your influence in the last couple months to make sure they get the message. and congratulations, we'll be looking for to welcoming new to me when you find that to be the right time. >> the gentleman yells back mr. hill is now recognized for five minutes. >> thank you chairman. thank you for your service in this congress you have done an outstanding job and it's a pleasure to see you as someone who has testified before congress i always thank you for your forthright testimony. it's a relative statement compared to many come before us. i really do appreciate your effort to be responsive to the committee in a timely way.

the market structure topic we have talked about before this is something in the first term that i've had in congress over the last two years that concern me. we have some 50 trading platforms and added a new exchange when the commission published the list of rules to be reviewed pursuant to the regulatory flexibility act and where are you in your commitment to fully vet that rule. >> as mentioned before is both things that we know now that should be fixed in a comprehensive review of all of the relevant issues. one of the biggest relevant issues is an ms itself. but something the subject of our committee's work and also the

fcc's comprehensive review. a lot of pieces to that. we want to be data-driven in the work, we do have the most reliable markets in the world and strongest i think. we don't want to do something that would have unintended consequences. in terms of examining from the ground up it's very much on the table to do. >> when you think the commission will review their work and make a proposal? >> i can't really predict the precise timing. it might be up to someone besides me in terms of when it will be before the commission. i sure but i would expected to remain front and center going forward. >> the issue between trading venues and exchanges is related topic, think it relates to having the most competitive markets and most competitive

equity markets. the former commissioner gallagher gave a speech speech where he talked about should exchanges remain, and your work as you head out have you developed a personal view on that? >> that's also in one of our subcommittees that's focused on it. we continue to do work, and i have not formed of you on it other than theirs questions raised. >> i want to switch gears and briefly i think congress has reaffirmed over the past years and certainly the commission has amounts for equity research one can use soft dollar commissions to pay for investment research. is that still the -- there is not a prohibition on the. >> but i here in europe there headed a different direction

under their 2014 proposal they put out called markets in financial instruments directive. could that created disparity for u.s. investment banking and research firms for their clients in europe versus the clients in the united states. it certainly has the potential. it struck me the first week i entered the door it's early among the reasons that are being tuneup right now. it's something we consider when we decide our own policies as well. how do you coordinate two different systems, whose that advantage and disadvantage, something we continue to discuss with them in various forms. >> would it be something you be willing to write a letter to the european securities regulators and caution them about because

of the treatment that are investment research company. >> i think i would need a briefing on that for the staff with how they sing together don't. certainly if i was of that view i wouldn't hesitate. i might not do by letter. >> you have time. but in 17 you know how firms work well in advance of deadlines. it could put american companies at a disadvantage. thank you for taking a look at it. >> the gentleman yells back. >> and i think you have the last word on this matter. >> i would like to join my colleagues in thinking the capital market subcommittee for his leadership. and thank you for your service as head of the commission and for sharing your expertise and insights and helping us with our oversight responsibility over the last several years.

i would like to on the part of the commission's mission to maintain fair orderly and efficient markets and facilitate capital formation follow-up from the questions from my colleague regarding fixed income markets. as you know, significant attention has been devoted to liquidity concerns and fixed income markets. both in the u.s. and globally. when you last testified that when you're asked about the regulatory impact on liquidity that were witnessing you testified that there is no question there are concerns about the liquidity in fixed income markets but you cannot identify the culprit. those who deny that, it can be

pinpointed to blame. yet we continue to see since you last appearance in front of the committee, evidence of revelatory impacts on liquidity. september september 27, the former treasury secretary commented the vocal rules solved a problem that was not a problem. >> it has become much harder for financial institutions to provide liquidity. you had a ceo of one of the world's largest electronic market makers announcing the firm would not invest in certain bond exchange traded funds because of underlying securities became too hard to trade. on october 7 the value of the british pound plummeted from a dollar 26 to a dollar 18 with some electronic platforms trading below $1.15.

so given some of the more recent developments, have you been able to determine whether regulations, risk retention artifact impacting the ill liquidity? >> know we don't have the evidence to make that funding. also whether or not you have actually had the two variation in liquidity a number of market participants are noting. to go back to the staff and say here's what the data looks like, we report quarterly to this committee and to several of us in the bond markets. where is it you clearly have some deterioration if you use the measure of dealer inventories. the measure seemed to be holding constant. we had some impact from brexit but it seemed to recover.

one of the things possible in terms of why the two different views out there is that most liquidity measures are based on completed transactions. there can can be transactions that don't get completed because you don't have an available buyer seller. you have a speculative thought but it could be some of what isn't being measured as transaction not being consummated as opposed to ones that take a while. the bottom line, we don't see that impact in the data we don't see the deterioration of the sea in the data that we have. >> there is evidence out there, for example when the co blackstone says when they pass there is 25 firms making markets guess how many there are now? five. triumph, you decide. what happens when things get difficult in the market locks up? that's not healthy for capital markets. it affects all markets that we

mandated that to make the world safer but this does not make the world safer. it's encouraging the world it's not encouraging the world to be safe because when people need to sell and there isn't liquidity what happens? >> i think that is the dealer inventory metric i was talking about. under volker you also have the market maker exception. you have banks acting as marketmakers that can be a source of liquidity. stepping back, these are significant concerns. but we study it and were getting the available data we can. our economist at the fcc are directed to report to congress in may of 2017 of the impact of

regulations collectively on corporate bond and that's part of what they'll be reporting on. it's a hard thing to do. >> my time is expired and you're exiting your posts but i would encourage your successor to continue to evaluate that in the role as a member. >> thank you, you'll back. >> there are other members in the chambers were waiting to come in. i was told you, unlike many other members did not have a hard stop date. >> so that concludes the hearing. let me say thank you for your service. someone made the comments and they thank you for your service and is relative to the others here. it is true true the bar for the other people is pretty low but you certainly have greatly exceeded that by the breath of

your dedication to public service in this position. i personally thank you for what you have done. although i'll tell you the very beginning. >> i thank you for your services well. >> with that said without objection solemn of members have five additional days to summit questions and we ask those be returned promptly and he still have x number of days to do that in. without objection all members have five legislative days which to submit materials to the chair for inclusion of the record as well. with that, this hearing hearing is adjourned. >> thank you very much. [inaudible] [inaudible]

[inaudible] [inaudible] >> today, a joint hearing on the interconnect committee of devices. one at 10:00 a.m. eastern c-span two. deutch, chairman of the joint house energy and --mon's talks about determine of the senate appropriations subcommittee on energy and water development. at 2:30 p.m. eastern on c-span3.

>> monday night on the communicators, president of audi andmerica talks about cars, the hype from the automotive companies. television the hype. in automotive, we're used to hype. asn it comes to matters such this i think it is a little bit disingenuous because the word is tossed around. when someone says autonomous, autopilot, self driving. think, i come out of my home antenna button and that car will take me anywhere in america anytime under any conditions. as we all know, that is not the case.

watch the communicators on c-span two. held a meeting to talk about their goals for the whendministration republicans will control the house, the senate, and the white house. we also heard from them after their closed door meeting. they have unanimously chosen paul ryan to remain as the house speaker. here is a look at those briefings. >> hello. good morning. i will put this one on. speaker ryan: all right,

everybody. welcome to the dawn of a new unified republican government. feels really good to say that, actually. this will be a government focused on turning president-elect trump's victory into real progress for the american people. our team is very excited and we cannot wait to get to work. at the same time, we recognize the task ahead of us is enormous. if we're going to put our country back on the right track, we have got to be bold and we have to go big. this country is expecting absolutely no less. in the days and weeks ahead we'll be working very closely with the president-elect and his transition team to lay out our ambitious path for 2017. that team of course is led by vice president elect mike pence and includes several of our own members. we're working hand in glove from the start. we want to make sure that we hit the ground running in january so we can deliver on the new president's agenda. a better way, better days lie ahead for our country.

mr. mccarthy: a lot of new faces here. what a difference one week makes. and in doing so as the speaker talked about we're working very closely with president-elect trump and president -- vice president-elect mike pence. and part of that is how we move forward. how we accomplish the promises made. and the american public expects it to happen. yesterday all the committee chairs and myself sent a letter to all the government agencies requesting that no new regulations be moved forward. this is not a new request. this request actually happened when barack obama won rahm emanuel sent the same letter. it's now time to change the tide to get the economy moving, to get a health care plan that actually works, and get america back on the right track. mr. scalise: we got these hats at conference today. it's not just a great slogan,

but inside the tag you see made in the u.s.a. there are going to be a lot more things made in the u.s.a. when this new administration comes n -- comes in. we have been talking to president-elect trump, to vice president-elect pence, and what an exciting opportunity. that the american people have given us to work and go do the things that are necessary to get our country back on track. our members are excited about this opportunity and we'll continue working in the weeks ahead to lay out and plan the first 100 days and the months after that will be so critical to moving this country forward again. rebuilding the middle class that spoke out so loudly. finally getting our economy and country back on track. it's an exciting time. we know there is a lot of work ahead. but that's why we ran for congress. is to have a moment like this where we can go big and go bold and pass the conservative solutions that will get our country back on track. mrs. mcmorris rodgers: this opportunity the people have entrusted with us to advocate and lead on their behalf is truly humbling, but it isn't a

time for victory laps or pat ourselves on the back. it's a time to turn this victory into real progress for the american people. it's a time to think big, to reimagine this government and to return the people's voice to the center of it. because there is too many people all across this country that feel like they are doing all the right things. they are working hard. they are paying the bills. they are trying to pay their mortgage every month. and they're still falling behind. obamacare is making health care too expensive. the v.a. isn't listening. government is regulating jobs out of their lives. our unified republican government will take these frustrations we're hearing and work together with president-elect trump to change the status quo. we've got bold, specific agenda items that will make a difference in people's lives and it will address some of the biggest challenges of our time. now i believe each plank in the

better way agenda is very important, but this election reminded me that at the end of the day article 1 of our constitution is what protects the people's voice in our government, and it's our role, it's our mission, to restore that voice. ms. jenkins: the american people have sent republicans back to washington with a mandate for change. we have a government united together with a purpose of bringing commonsense principles back to our nation's capital. since the beginning of this year, we have traveled across the country getting your feedback on our better way agenda. this set of legislative priorities is tailored to the problems facing our country that focus on empowering hardworking americans to achieve success. foremost among our priorities

will be bringing balance back to our broken tax code by building a simpler, fairer, flatter code, building a code that advantages all americans not just the well connected. a code that drives investment and job creation right here in america. a code that gets america growing through good old-fashioned private sector investment. it's clear that kansans and the american people are ready for a change. with their voice as our guide we're ready to work as a unified government to help build an opportunity economy for all americans. speaker ryan: questions? >> you urge people to judge the president-elect on the decisions you made. what about the ban none decision, how do you respond to the serious concerns and fears? speaker ryan: i would say the president will be judged on his results. this is a person who helped him win in an incredible victory and incredible campaign.

the president will be judged on the results of this administration. that's why we're eager to get up and running to help him with his transition and to make progress on the mandate that has been given to us by the american people. we're confident about moving forward. we're confident about the transition. and we're very, very excited about getting to work for the american people. >> when will you move on a fiscal 2017 budget resolution? how could that affect the appropriations process? speaker ryan: those are decisions being made with the transition team. none of those decisions have been made yet. we're now sitting down with the trump administration in waiting along with our colleagues to come up with our game plan for lame duck, and also to come up with our game plan for 2017. it's very exciting. we have a lot of work to do. we're having constant conversations about how to do that. we haven't made those decisions yet. >> any timetable? speaker ryan: the president-elect signaled he was going to put his children as his advisors in his administration. do you have any concerns about them potentially getting security clearances?

and two, should trump take any steps to ensure no conflicts of interest between them running a those businesses and -- speaker ryan: we're focused on doing our job in congress. look at this, donald trump is a multibillionaire successfully businessman who has been so successful because he's surrounded himself with good people. he's a man who has made great successes, created tens of thousands of jobs because he gets good advice from good people around him in his life. what's wrong with that? that's a good thing. we're going to focus on doing our job here in congress. he's going to focus on populating his administration. we'll do everything we can to help him be as successful as he's going to be. which i think he is going to be a very successful president. we have an exciting agenda. we have a transition team we're working with. and very excited about getting to work for the american people. >> mr. speaker, steve bannon has personally come after you, his publication has tried to unseat you in your primary, written about your children and his publication has written about your children and questioned your school decision. he's mocked your catholicism.

do you think at any point -- speaker ryan: i'm not looking backwards, i'm looking forward. i am looking to the future and i'm looking forward to how we make this work for the american people. how we help president-elect trump to be the most successful in our lifetimes. get this country going again. look, you have heard me say this so many times. 70% of the people in this nation think america's going down the wrong path. they now said get on a better way. get on a better path. that's our job. our job is not to look backwards. our job is to look forward. make president-elect trump as successful as possible. help him with the transition so he can make good on our commitment to the american people to fix this country's big problems. >> you built your career on performing ideas, donald trump just won on a platform that in many ways is not terribly conservative. are you prepared to lead a charge -- speaker ryan: we're on same change with our president-elect.

i talk with donald trump personally every single day. i spoke with mike pence this morning. we're on the same page. we are working hand-and-glove and we're going to make sure this is a successful administration. more importantly, we're going to make sure that the voices we heard from this election from the american people are acted upon. that we actually fix these country's problems. you look -- to get to your specific point, look what obamacare did to our entitlement programs, it made them worse. we're going fix that. we're going to help fix these problems plaguing this country. whether it's skyrocketing health care costs, lack of jobs, regulatory red tape that's strangling jobs and businesses, fixing our national security, securing our border, these are all things that we're excited about, rolling up our sleeves and getting to work with our incoming president to make good on his incoming promises. >> trump ran on a platform of $1 trillion on roads and bridges and infrastructure. are house republicans ready -- speaker ryan: i asked the question about budget reconciliation, processes, these

are things we're working on. it's going to take time to figure out what bill comes where and how it adds up. that's what the congressional process is about. the point is, donald trump wants jobs. i talked to donald so many times this week which is let's make sure we get people back to work, get this economy growing. let's take all of this uncertainty out of the economy that's plaguing it and get people back to work. this is something we share. this is something we're excited about working on with donald trump. that is why i'm very confident that we're going to have a unified government that works hand in glove with this administration to make good on the commitments and get people back to work and fix this country's problems. thank you very much. appreciate it. [captions copyright national cable satellite corp. 2016]

>> today, a joint hearing on the cyber security of connected devices. live at 10:00 a.m. eastern on c-span two. >> today john deutch, it chairman of the secretary of energy advisory board and nuclear physicist testify about the future of nuclear power in the united states. 2:30 p.m. eastern on c-span3. >> c-span, where history unfolds daily. in 1979, c-span was created as america's service i cable television companies and is brought to today by your cable or satellite provider. >> live today on c-span, washington journal is next.

it can :00 a.m., the house returns for work on a bill that would block certain transactions in relation to passenger aircraft to.. -- to iran. ♪ host: good morning. 1 is wednesday, november 6, 2016. the senate is set to reconvene at 2:30 p.m. one week removed from america waking up to a president-elect donald trump. setoth parties in congress their leadership lineups and we are the congress -- asking our viewers today, what do you want to see from your members of congress when it comes to dealing with the trump