because when bank lending is limited to the bank's own balance sheet the bank will first make loans to the safest and usually richest borrowers. when it runs out of funds it will stop lending. in other words, madden did not reduce the price of credit to those borrowers. it reduced the availability of credit to people who needed it most. criticism of madden again is not a partisan issue. president obama's slitter general said quote erred in holding that state usury laws may prohibit a national nank's assignee to remove a debt assignment. again, that is the obama administration decision. nor does it alter state authorities to license -- i think the states should vigorously exercise those authorities regarding those state license companies. i would note that the very pay day lenders and others that often come in for criticism are state licensed companies. if the state has serious concerns about them they are free to revoke their lrchs or take other action. the issue here is price controls. i would ask you to consider that price controls result in shortages. >> thank you mr. brooks. mr. ca

because when bank lending is limited to the bank's own balance sheet, the bank will first make loans to the safest and usually richest borrowers and when it runs out of lendable funds or when it reaches borrowers whose market rate of interest exceeds the legal rate, it will stop lending. madden did not reduce the price of credit to those borrowers. it reduced the availability of credit to people who needed it most. criticism of madden again is not a partisan issue. president obama's solicitor general advised the supreme court that the madden court of appeals "erred in holding that state usury laws may validly prohibit a national bank's assignee from assigning -- valid under the law of the state in which the national bank is located." again, that is the obama administration solicitor general speaking. having said all this, the true lender rule does not alter states' authority to set their own banks or nonbank lenders or to define what true lender means for state banks, nor does it alter state authorities to license, regulate and enforce laws applicable to nonbank lenders and financial

the bank and many community banks highly value a robust and sustainable program. thank you for convening today's hearing and for the opportunity to offer my perspectives and i'm happy to answer any questions that you may have. thank you. >> thanks to all the witnesses for being here today and for your work on engagement on the ppe less than one quarter have this forgiveness platform even though the credit union invested in its own platform you will so up the vetting for the platform. can you share with us any feedback the borrowers have had on the platform? >> we have opted in. we jumped on it quite literally and because we want to give every opportunity for forgiveness so today as it's opened we have seen approximately 12% go to the direct portal. from theirir perspective this creates more and we have to go into the portal and check and then manually we are inputting data as well as at the end of the process. >> we've heard they are responsiblee for paying with interest, excess loan amounts, miscalculation from the lack of rules and clarity early in the program.

my bank and other community banks choose to preserve our borrower relationships and not be cut out of process by a direct sba program. more broadly, think underwriting and servicing is what makes fda lending program so effective and must not be displaced by direct programs. as we conclude the ppp, reports of fraud have surfaced in the media. these problems must be reduced to the greatest extent possible. not only in the ppp but all sba programs. my bank has experienced no ppp fraud and one forgiveness. ike other community banks, we own the consequences of our lending decisions and underwrite with great care. certain lenders with little experience in underwriting or with the sba crowded into ppp. safeguards were lowered in response to the crisis and not surprisingly, these lenders may be subject to higher incidence of fraud. as normalcy returns, the fda should proceed with great caution as it considers changes to existing programs. many community banks highly value robust and sustainable program. fraud puts all programs at risk. thank you again for convening today's hearing and for the

the bank of england policies, we will get decisions from the bank of england as well as central banksat the markets, we saw a hawkish jay powell, but they are not as worried as they were about evergrande. tom: yes, they threw him a ball. you have two key things that came from the meeting with powell. we have a timeframe for tapering. no consensus, no majority on whether or not we get a hike in 2022. a little more hawkish on that front. pumping $17 billion of liquidity into the financial system, that is the biggest injunction in months. the calming of the view and the disconcerting of the evergrande brand. we are waiting for germany to come through. we have france coming through below the forecast. so comfortably in expansionary territory. 58.5, that is the latest. amiss in germany and france when it comes to manufacturing. -- a miss from germany and france when it comes to manufacturing. the dax is brushing that off, gaining over in france. the cac is also up. we note the president will meet with joe biden at some point to talk over those political tensions. the ftse 100 is gaining at

banking system? we need to listen and learn. i want to think our witnesses for being here today. for sharing their time and educating us. thank you madam chair. >> now, senator brown you for an opening statement. >> thank you. thank you for being part of this hearing. thank you for making this subcommittee as active as it has become. i'm glad our subcommittee convened to explore how essential banks digital currency can maintain our country's leadership in the global economy. that is the whole point. other countries around the world are taking steps to establish central bank digital currencies. we agree the united states must not be left behind. we need to lead the way. there are million's of working families who know it is expensive to be poor. late fees, overdraft fees, all kinds of promises about how cryptocurrency would offer alternatives to the current banking systems. the approaches offered by crypto companies are not solutions. it is another volatile, risky asset for wall street speculation. it

than the bank loans.o i think -- looking at it from the standpoint of trying to reduce fraud, i think utilize your existing framework of community banks and banks to continue that lending through the 7-a programs and 504 programs and even p.p.p. was very successful and i think limited fraud by utilizing the banking framework that we have. >> well, thank you so much. yeah. i think the biggest concern that we have is the impact, you know, and we want to make sure that there was a prevention of waste, fraud and abuse with those programs. one more question, and i would like to direct this to ms. payne, why do you believe the forgiveness review process by the s.b.a. is challenging and time consuming? are there certain steps that add extra days to the review? >> and under loan review, it is a time-consuming process. because it's not typically that we have -- that the lender has a direct communication with the s.b.a. representative. when an email is sent out and sometimes it can be very vague. and then we're ask

and the central bank, the european central bank, the federal reserve bank, all the central banks of the world, fostering and basically pushing this wealth and income gap. last week, the big nose, of course, was fed chief power. other officials owned securities, central bank, bought during the coven pandemic. so you had all the fed presidents, many of them actually owned a lot of the securities that the central bank itself was and buying at a premium to keep the system alive. right? so they were earning money by their own using the taxpayers money. so rosengran, he said he would tell us individual positions and stop trading while he is. so he was trading, he's the boston fed president. eric rosengran, dow sped president, robert caplin, who actively traded millions of dollars of individual stock, also said he would no longer trade and would sell his individual positions. but he said his trade did not violate fed ethics rules. okay, well it will take you at your word, right, so they were actively trading during this time. those 2, in particular, the dallas bed and the boston fed president.

implemented by the central bank, allowed them to throw the commercial banks. the last 3 banks under the bus and it looks like based on that statement, they're softening things up because they're going to cut them off. so jamie diamond the last, the last laugh jamie diamond is going to be disenfranchised. every dime is going to be cut off from the federal banking system is going to be buying bitcoin as a lifesaver. it could happen in the u. s. but in the e. c. b, they're, they're offering 3 different options. indirect c, b, d, c, direct cbc, or hybrid cbc. the direct cbc would be from the central bank to the individuals out there, the deplorable people that indirect c, b. c is probably the one they're going to take that is from the central bank to the commercial bank, who then get the distributed so they get their car and we'll see what emerges. but i reckon the u. s. might get a direct c, b, c, and europe will probably have the indirect cbc. right? right. well they totally missed the point because they don't compete with big coin . big one is the centralized a

the banks. so it's difficult to is the same, the same tours as they are and means a play. oh, go to in, you know, in an ice enlightening people. yeah. that's really remarkable. it's what means i've done to really change the political landscape and now with big coin the monetary landscape. now a couple of countries, the message has been received. el salvador is hyper burgoyne eyes. they've made bitcoin legal tender. they've actually now opening up their entrepreneurial doors to people to come in and get great tax treatment for bitcoin. become a resident for 3 bitcoin. ukraine is also now i per because i think so will europe in the us be the last to adopt or adopt the u. s. is the more advanced than, than europe? i think because of the, as you have for the platforms, like once we, we talked about coin base crackin and etc. in europe, it's more fragmented and therefore it's easier for the central bankers to control what's going on the client base and crack. and it's actually competitors of painting

i think by and large banks, big banks, community banks, cdfis, even finteches got the funds out to a lot more borrowers and allowed the funds to be funneled through a lot of sources so that more money could get out the door as quickly as possible to these businesses that needed it to survive. having clarity and rules from the beginning and having clear steps for forgiveness, delivering on that promise, taking away that uncertainty as to whether you're going to get these funds forgiven or whether you have unexpected debt after you kept your staff home, those are the things that i think could be addressed to help more businesses if we, you know, hopefully don't -- if we ever have to go through something like this again. >> thank you. my time is up, so i yield back, thank you, chairwoman. >> the gentleman yields back. now we recognize the gentlelady from california, miss king, for five minutes. >> thank you. thank you, chairwoman, and ranking member. i also want to thank the witnesses for being with us today. you've heard a lot from my colleagues about how the ppp has been tremendous as

central bank and central-bank currencies fit for the century we are in, which is why we are lookingcbdc, central-bank digital currencies. instead of having banks put cash in our pockets, we can have exactly the same thing but in a digital form. all of us are working on this, and we are looking to push the cbdc issue on our agenda. david: if the ecb were to have a digital currency, would that be to the exclusion of paper currencies, or would it be side-by-side? ms. lagarde: side-by-side, because we want customers to have their preference. if they still want to hold banknotes in cash, fine, and it should continue to be available. david: at this point in your life, do you feel discrimination to you in your professional life as a woman? ms. lagarde: it is difficult to discriminate against me, but i am aware of discriminations against many women in all parts of the world. ♪ david: in recent years, the central bank has been worried about something called climate change. you are making comments about it. why should central makers be worried about climate change? is that within your purview

banks. they are searching for their next generation. the talent of tomorrow is not the same as yesterday. i pulled up their bios. you have skidmore college, a bachelors in economics. you have the university of south wales australia. they are a different set of people. you have three more women out of the five people elevated to the top. now is going to be lauren succeeding david. it's the trusted confidant. jonathan: let's talk about fresh eyes and with industry needs. for some of these big banks, they are looking at an explosion of buy now pay later. some firms are doing something different. square his changed again. they missed it in a big way. that's not a criticism. it's not a criticism of jamie dimon. for many people, they missed it in the last 10 years. they missed what's happening elsewhere. >> you have paypal, less than $10 billion from market cap. not only did they mess it, -- tom: the shell when moynahan took it over. with great respect i say this, the boston mafia came in and took

central bank digital currency. officials testified about the pros and cons of such a move, and also discussed china's digital currency and its global implications. the senate banking subcommittee on economic policy held this hearing in june. >> today's hearing focuses on the opportunity by a central bank currency. this is a bipartisan hearing. in fact, it was ranking member kennedy's suggestion to hold it and i want to thank him, and i want to thank his team for working so closely with us to get it put together. now, the core subject of this hearing is not bitcoin or dogecoin or any other cryptocurrency. instead it's the explosion of cryptocurrencies over the last decade that has created the context for understanding the potential value and risks of digital currency. there are substantial difficulties with our current payment system. nearly 33 million americans have been locked out of the traditional banking system. they're forced to use check cashers and payday lenders for basic banking services, and those with tr

my bank's ppp lending is typical of a community bank. we made a total of 929 loans, four 64.4 8 million dollars. saving roughly 10,000 jobs. our average loan was just under 70,000 dollars. in the state bank's 40-year history as a lender, it help us to navigate our, sometimes, challenging fda channels, on behalf of our borrowers. our largest ppp loan, 2.7 million dollars, was to a southern tier independent center. they are a large, not for profit, based in new york. dedicated to helping people with disabilities remain independent. the loan helped prevent staff layoffs, and allowed to continue to provide critical services into our community. with other community banks of similar stories, and results. and aggregate, community banks make nearly 60% of the ppp loans. which supported nearly 50 million jobs. the community banks, once more, made over 80% of ppp loans to minority owned, and women owned small businesses, in nearly 70% of the ppp loans to other small businesses. i am proud that my industry stepped up, in order to support the surviv

my bank's ppp lending is the pinnacle of the community bank. we made a total of 929 loans for 64.8 million dollars, saving roughly 10,000 jobs. sour average low is just under 70,000 dollars. and the bank has a 40-year history with the lenders, hoping to navigate sometimes challenging levels on behalf of our borrowers. and the largest ppp loan was to a independent center, a large not for for profit in new york, dedicated to helping people with disabilities remain independent. the loan helps for event staff layoffs and allow the center to continue to provide critical services in our community. on the community banks have similar stories and results, and in aggregate banks made nearly 60% of the ppp loans which supported nearly 60 million jobs. there were 80% of loans to small businesses. and nearly 70% of the businesses to use veteran owned small businesses. i'm proud that we stepped up to support the survival of these diverse businesses in the time of crisis. we are well through the forgiveness phase of the program, and this process must be as s

the bank of england, norge bank, and the snb are all in the spotlight.ning is now is bloomberg's chief north asia correspondent. what are you looking for? what are we expecting to hear from these central banks? >> a lot of expection. they would be the first g10 central bank to do so. economists, the chatter is about what signal they will send for more hikes heading into next year. we have the bank of england, it is trickier for them. growth is slowing in the u.k. but inflation is quickening. we will have to see how the bank of england manages to send a message about how they don't want to choke off the recovery while they want to keep ahead of market betting on interest rates into next year. that outlook is unlikely to be resolved today. the bank of england is expected to keep rates at a low and stick to its asset purchasing program. we have to wait a couple more months to get clarity on where the bank of england is headed from here. tom: thank you. stay with us. later in the program, we will be outside the bank of england. the bank governor will be live

regional banking.redit suisse is considering moving its asian investment banking operations into its global securities and advisory business. the board is set to be meeting next week to discuss strategies. sources say it would mirror a similar decision last year bringing asian markets activities into that unit. it's the latest move in a wider overhaul of the troubled lender which was hit hard by the arcago scandal. fedex has cut its annual earnings outlook and posted a quarterly profit below analyst expectations. this after struggling with higher costs as package growth has stalled. the company says costs suffered because of a tight labor market and led to a $450 million increase in costs from a year earlier. shares fell over 3.5% in extended trading on the news. haidi: taking a look at the day ahead for australia, melbourne embracing for another day of protests over covid vaccinations in the construction industry. demonstrators are promising to return to the streets after two days of at times violent

this is according to bank of america. it's not coming from any conspiracy theorists is actually bank of america, relating fed money printing purchase of assets, an increase in global tech stocks, and they have a chart here. you could see the central bank liquidity is a darker line where that light line is. market cap of amazon, apple, facebook, google, microsoft, netflix and tesla. right? like i was saying, sometimes the simplest answer is the correct answer. and a lot of people ask, why are these text back so high? why is the stock market so high? and the simple answer is that it's a transfer payment. the federal government is transferring the paper money that they print into the pockets of the tact executives. it's as plain as the nose on your face, and you can see it in these numbers. you know, for those who get transfer payments, like food stamps and other government relief programs, they understand how this works. the government prints money and they give them the food stamp and then they go buy food here. the federa

banks have lobbyists. they are in every state, is krysten sinema going for a big bank breakup?akup the banks? you can do another glass stegel, it's a depression era law, we're not in the depression and not coming out of a financial crisis you'll have to get tremendous buy-in from all sorts of people including moderate dems in the house, and i bet you nancy pelosi wouldn't even support that. she doesn't strike me as someone that wants to start breaking up all the banks. she as other agendas and to regulate them is to keep them in your corner and squeeze them for campaign contributions and do all this woke stuff for them. why are you wrapping me when i'm being asked a question? this person keeps yelling in my ear. lauren: on a much different level i like the banks for one other reason, charlie because now when we walk around the building we actually see bankers in suits, they are back in the office i love it. charlie: it is good. new york is am coming back. lauren: inflation maybe slowing but will it be enough for the fed to put a hold on its taper plans? today's countdown closer

bank of korea loss of 75 basis points.ell you that there are idiosyncratic problems that these economies are dealing with? we are not necessarily watching the fed deal with the center of gravity when it comes to setting global policy. kristin: you are right. each country is different. some countries are recovering much faster. some are more of a risk because they don't have as well anchored inflation expectations. there's other factors pushing up inflations. all central banks easing in 2020, 2021. now we will see different central banks moving stimulus at different rates. that makes sense. they have different situations. the fed still matters. the central bank is the world's largest financial market. it's the central bank for the world's most important currency, the dollar. what the fed does will still have global applications. that's wide is important for the fed to be very careful and communicate very well what it's doing and what it plans to do next. kathleen: thank you so much. plenty more ahead on daybreak. this is bl

this is, according to bank of america, coming from any conspiracy theorist is actually bank of america, relating fed money printing purchase of assets, an increase in global tech stocks, and they have a chart here. you could see the central bank liquidity is a darker line where that light line is. market cap of amazon, apple, facebook, google, microsoft, netflix and tesla. right? like i was saying, sometimes they, the simplest answer is the correct answer. and a lot of people ask, why are these text back so high? why is the stock market so high? and the simple answer is that it's a transfer payments. the federal government is transferring the paper money that they print into the pockets of the tax executives. it's as plain as the nose on your face, and you can see it in these numbers. you know, for those who get transfer payments, like food stamps and other government relief programs, they understand how this works. the government prince money and they give them the food stamp and then they go buy food here. the federal reserve bank prints the money they gave it to tim kirk or the guys

there has to be education on the banking side. they would love to have 95% guarantee but there's not always the education internally with the branches in the banks themselves to deal with indian country. looking at where the incentives are, the role of the government in doing development, and looking at bringing the capital markets and is really going to be instrumental in solving this in a general way instead of looking at it one house at a time. >> thanks. my time is up. i appreciate that very much. i look forward to following up on that conversation. i think it is very important. >> thank you. thanks for holding this hearing. we've been called to a vote. we will probably have seven minutes left before the vote terminates. i will be brief. i want to thank all of our witnesses for being with us today. on the 184 program, we made some changes. we have worked on this in the past. we partnered together on the native american affordability act. it was signed into law. our legislation made it easier for borrowers on tribal trust land

we are also hearing banks are up , a number of different banks, industrial bank, china everbright bank, all kind of signaling to the market now that we have come out of the holidays , our exposure to evergrande is limited. i think everyone is doing their own ring fencing. yvonne: let's bring in john wood. markets are on a tear right now. is it right for markets to assume the end is near for evergrande? >> what struck me about the evergrande situation is how accurately the markets priced in this event. we saw bonds close to recovery rates. equities declining by 80% to 90% over the year. if you look at high-yield yields outside the property sector, they were largely untouched. in other words, we saw discriminate selling rather than indiscriminate selling. if you are an equity investor in some policy supported sectors, like renewables, 5g, semiconductors, you posted gains on the week. there is an interesting dynamic at work. i'm kind of impressed in a way that the market is called evergrande. sort of in the same way the market is looking through the debt crisis in the u.s. there is a pric

secondly, banks and non-bank risk, the exposure risk is quite high. there's about 130 banks with direct exposure to the evergrande issue. 130-plus non-bank institutions with exposure. a lot of people saying maybe contagion is not a huge risk. ubs saying if this company defaults, if it outright collapses, if the central government does not come out with a bailout, the contagion risk could be big. rishaad: you've even got the irish independent sending shockwaves through chinese property. yvonne: we discussed that risk with the head of china fund property market -- china bond property market. >> evergrande's event i think will be even bigger than what we think. most developers now are basically losing refinancing capability. you can see even the quite reputable leaders, they are unable to use u.s. dollar bonds. investors and creditors are losing confidence in the sector. that's why we are seeing lots of lending and bidding. the implication, those private developers are losing market share. now they cannot get the refinancing, so they have stopped bidding

you know, you can't get cash flow bank account information if you don't have a bank account.here are disparities who doesn't have a bank account. we know lots of consumers, low-income and minority consumers are driven out of the banking system because of overdraft abuses. get people into bank accounts that are low fees and safe are important. what's important is congressional action to tamp down on those overdraft abuses and make sure they don't hit all consumers, not just the ones who are able to benefit from no fee and safe bank accounts. ms. williams: thank you, ms. wu. i am out of time, mr.a chairman. so i do have another question around technology and broadband access but i'll submit that for the record so i hope our esteemed panelists can answer that as we move forward during this important work. mr. lynch: thank you. the chair recognizes the gentleman from wisconsin, mr.a steil, for his question. mr.a steil: thank you, mr.a chairman. i'd like to dive in, mr.a carpenter. your testimony, you talked about the what and the how of open banking. i thought it was well said. t