aig or mbia or somebody else. and a lot of investors were investing in collateralized debt obligations because there was what we used to call when i was earlier in the financial industry, called bond wraps. they were done by insurance companies, not by derivatives people. those bond wraps and cds usually meant that investors would invest more. it's in that way that i think in 2004 to 2007, contributed. it was not the only cause of the housing bubble at all. but i think it helped contribute -- >> we're talking i think about two different things here, if i can -- >> go ahead. >> i think we're talking about two different things. >> we may be. >> a synthetic cdo doesn't have anything to do with an actual loan. it just replicates the risks associated with a cdo that includes the actual loans. so it doesn't add -- it doesn't make those original cdos that include actual loans any more or less risky. now, you could buy a cds on an actual cdo with real mortgages in it, and that might respond to the point you are making. i

aig. it appears to me that ots did not get this right. >> the commission has a lot of information on aig that we did not have in april of 2007. at that time, just to clarify what we looking at, ots was looking at a company that over with a substantial change in 2005. the longtime ceo left and was replaced. they felt like they needed to redesign the company. what we were looking at in the 2006 and early 2007 reduce or policies and procedures that were put in place to the response -- were put in place in response to the actions of 2005. do they conform with what we are seeing elsewhere in the marketplace and due date appear to position the company to be able to respond to a range of risks it might face over the long term? it had a strong earnings platform. the major weaknesses in the sub- prime lending areas and the build up in that area had not manifested themselves. what we were evaluating where policies and procedures that had not been tested. one of the topics of conversation was that th

ultimate in the fishies of the tax funded aig bailouts was not just aig's counterparties goldman sachsut also goldman's counterparties. it is estimated that goldman's counterparties may have benefited from the taxpayer bailout of aig by avoiding as much as $11 billion in losses and yet incredibly, we don't know who those counterparties are. goman has refused provide your panel with the names of those companies and mr. chairman i have a summaryhat i would also like to include in the record as i ask on another matter. the congressional oversight panel also issued a report this week about t.a.r.p.'s capital purchase program. it details the treasury seems to have treated the nation's largest banks much more more favorably penetrated the nation smaller banks. many of the smaller banks now are struling and their participation in t.a.r.p. is neither stabilize the financial system nor increased lending activity. let's look at gao. mr. hilman's office released a report about aig. one focus of the reort is the status of aig's attempt to repay its debt to the american taxpayer. over time the gove

lewis on aig's business in its totality including the swap portfolio. to the best of my knowledge, i never recognized that portfolio, and there were no issues raised that would have given me cause for concern. >> in the management report sent up to the parent company, with the information have been there that the exposure had gone from $17 billion of the way up to $78 billion? that would have been in the management report floating up, correct? >> yes, sir. >> secondly, these representatives of the multi sector cdo's. they were almost overwhelmingly residential back and very substantially some prime. in a survey we did of some of the ceos -- cdo's were backed by rmbs residential mortgages. you indicated you decided to stop writing on some prime instruments in january of 06, for example, you backed an instrument where it was 93% subprimal. -- subprime. my question is, you said you did a thorough due diligence. were you aware of the quality of the mortgages were you do direct analysis, or you confident that you had a full understanding of the nature of wha

aig no longer will anybody be able to do what aig did, namely indebt themselves through these derivatives without any limit. we make that impossible. we make it illegal. >> charlie: are there things that the chair of the financial services committee wish were in this bill that are not in it? >> yes. not a whole lot. i would not have exempted the automobile dealers. by the way this has the biggest package of consumer protection ever adopted in american history. elizabeth warren who has become the premier advocate of the consumer federation of america, all the others that deals with consumers. we set up an independent consumer agency. the federal reserve has no power over it. we've taken from the bank regulators all of the power to regulate credit cards, overdrafts, payday lenders and put them in a genuinely independent agency. automobile dealers we couldn't get as much as we wanted there but we got all the other parts of it and it is as i said very strong. we have in here, for example, a fiduciary responsibility for the first time on dealers who sell products to individuals. we have a fair

aig was a highly-rated counterparty. they did not like to sign to be a zero-way -- to sign two-way agreements. >> we of a company that accelerates there's -- we have a company that accelerates theirs after yours. >> why were our marks where they were? if you look at our trading agreements with aig, it clearly states that our marks are to be determined by fair value, not fundamental. our determination is where things are transacting, based on other relevant transactions going on and on the market. until there is some transaction that equates, it is difficult to mark the books. what was happening, you went through a time where you had increased volatility. what normally happens then is bid offers widen, because people are unsure of the real volume. eventually, some trades start taking place. as more trades take place, the market tends to converge around an area of value. as trades took place, we used to those actual, real, allied trades as references points to as reference points. >> you are telling me you had actual trade

-based subsidiary of aig. i took on increasing responsibility would on the property underwriting side of the business. in 1996, i move to new york and i have lived there ever since. i became chief operating officer and president of a are you -- aiu. in march to the house and five, i was asked by the board to become ceo of aig. when i assumed this position, at the company was in crisis. we had to advise all interested parties that we would be delaying the filing of the 2004. we undertook an internal review of our books and records. this reduced spent the global units. -- this reduce banned the global units. i was meeting regularly with regulators and working with senior management to strengthen and enhance our overall financial reporting and internal control environment. aig was segmented into four lines of business, life, non- life, financial-services, and investments. aig conducted interest-rate, currency, equity, commodity, energy, and credit transactions. during most of my tenure, justice cassano was c.i.o.

when aig thinks it might be a little bit of a sticky ethical wicket, you got a problem. >> lehrer: allight. moving again to ethical sticky wickets the wick pedestriania-- no, sorry, the wicki leeks of the military documents involving afghan tan, the secretary of defense and the chairman of the joint chiefs said yesterday this is, lives are now at risk because of this. this is a national security issue and a major way. how do you read it? >> the defense experts i've heard from say that it's a thread maybe not quite as strong as mullens. mullens came out very strongly. karzai has come out very strongly, gates very strongly. but it is certainly a threat to those afghans. the times of london did a quick look at what is on-line and found the names and villages of afghans, a great number of them without too much trouble. >> lehrer: those have not appeared in print but they are on-line. did they put the whole thing. >> there are two things, first that makes it that puts their lives at risk and it micks it much less likely people will cooperate and that is just bad for our troops. the second i

position on the powerful ways and means committee, to raise money from big wall street corporations, like aig, citigroup and goldman sachs that had business before his committee. as for rangel, he insists he has never knowingly broken the rules of the house, violated themwatc he understands the seriousness of the allegations. >> years ago, i survived a chinese attack in north korea. and as a result, i go by the book that having survived that, i haven't had a bad day sense. today, i have to reassess that statement. thank you. >> reporter: the rangel ordeal has already been a major embarrassment for democrats. but it will become a much bigger one if the committee goes forward with plans for a big, public trial of rangel that will take place in september. that's right in the middle of the campaign season. rangels lawyers are trying to negotiate a way to avoid that, by some kind of settlement, where he would admit some wrongdoing. but right now, all systems are go for a public trial of charlie rangel before the ethics committee in september. jonathan karl, abc news, capitol hill. >>> fired govern

goldman sachs, citigroup, and aig are among the companies named.nce most of them have paid back their bailouts, there's not much the government can do. >>> a new study estimates the bp oil spill could cost the gulf coast up to $23 billion in tourism over the next three years. travel and tourism generates up to $34 billion a year in coastal communities. and employs 400,000 people. the group that commissioned the study wants bp to pay $500 million for a marketing campaign to help bring those visitors back. >>> a former general motors engineer and her husband have been charged with trying to steal trade secrets from the automaker. the couple allegedly copied thousands of documents about gm's hybrid technology. and then, tried selling them to a chinese rovel. gm estimates the value of the stolen information at $40 million. >>> in today's "usa today" tech report, a look at dell's new tablet computer. the company started taking orders for the streak this week. it has a five-inch screen. it also doubles as a phone. "usa today's" ed baig thinks it may have

by a three-one margin, they think favorably of big corporations such as bp and aig. it is not a church-driven. they are married and older, but this is a republican group and they will have one half of the republican party, and it will be an enormous impact if the republicans to win in november. >> we talked about the tea party before and i have written about the tea party, to their chagrin. not nice people. they are not nice people. they are mean spirited people. they fly and the flag of the fiscal responsibility, -- they fly under the flag of the fiscal responsibility but there is a lot of animosity there. >> if we were not in a year when the republican side had the wind at the back, this movement would devour the republican party. i like the two-party system. i think it is good for the country. i am afraid of what this is going to do for the republican party. >> i really accept the deepest of these of my colleagues here, and i know how concerned they are -- the deep sympathies of my colleagues here and i know how concerned they are about the future of conservatism

used his position on the powerful ways and means committee to raise money from big corporations like aig and citigroup, goldman sachs that had business before his committee. as for rangel, he says he never knowingly violated the rules of the house, but diane, if you watched him today, you can tell he understands the seriousness of these charges. >> years ago, i survived a chinese attack in north korea, and as a result, i wrote a book that, having survived that, that i hadn't had a bad day since. today, i have to reassess that statement. thank you. >> as you said, jon, you could see a lot on his face. so what do you think is next for him and for his party? >> reporter: it's already been a big embarrassment for the democrats. right now, the plan is a trial in september. right in the middle of the campaign season. rangel's lawyers are trying to avoid that. they're negotiating some kind of a settlement. but right now, all systems are go for a full-scale public trial before the tv cams are in september. >> jonathan karl, reporting for us tonight from capitol hill, thanks, jon. >>> and we move

goldman sr: aig, goldman sachs, group,roup, bank of america, morgan stanley, jpmorgan chase ving11 other banks receiving s xpayer bailout funds gave their own executives $1.6 billion in salary and bonuses at t for their their performances at the end of 2008, beginning of 2009. that was the exact same time that was asen the economy was crashing down, because of decisions made by some of these same executives. some of whom were paid more than some of whom wer $10 million apiece. according to treasury department ennethal kenneth feinberg. >> the taxpayer has a right to be outraged. who wouldn't be? >> reporter: all of this was be legal, because executive pay executivens on companies receiving bailout funds did not exist until february 2009. he at the time these payments were made, they were ill the part of t viosed, bad judgment on the part of these companies, but they didn't violate any statute, they didn't violate any regulation at the time. >> reporter: feinberg had few reporter: feinb the white house did not give him hee power to seek the return of ny of these funds. six from the six fi

some of the biggest banking names, goldman sachs, aig, jpmorgan, 17 in all, paid out $1.6 billion in bonuses. and some executives got more than $10 million each. this, at the height of the banking meltdown. >> trying to pay back the federal bailout fund. >> reporter: with billions in bailouts. the man charged with investigating those bonuses calls them ill-advised. >> the taxpayer has a right to be outraged. who wouldn't be? >> reporter: but nothing will be done about the bonuses. no payback. no demands that bonuses be cut in a future crisis. why? 11 of 17 companies have already paid back the bailout money. and feinberg, whose authority was limited, decided not to go after the other banks, to avoid another public battle over bankers' pay. >> i came to that conclusion because at the time these payments were made, they were ill-advised, bad judgment on the part of these companies. but they didn't violate any statute. they didn't violate any regulation at the time. >> reporter: so, feinberg could only deliver a tongue-lashing to the bankers. are you saying these gu out like bandits? >>

it does not dissimilar to the situation at aig. the former director of thrift supervision testified that tf did have the authority to properly regulate aig. they chose not to do it. the case after case, regulators had the authority to prevent behavior that contributed to significantly to our economic debacle. whether it was a matter of ignorance, negligence, incompetence, or simply making a mistake -- we do not know. so many of us find it somewhat ironic that the now the regulatory bill that is awaiting the signature of the president in many respects rewards regulators who contributed to the financial crisis with yet more regulatory authority and of little or nothing about ignorance, negligence, incompetence, and simple mistakes. the sec will be getting significant new authority in addition to their tremendous workload. i've heard some estimate of 95 new role makings. some say wonder 23. -- some say 123. all this new authority is against the backdrop of the lehman brothers failure, the- ponzi scheme, and the sec pornography's scand

not firms like aig or bear nt,arns managed themselves to the point where they could not survive without the government, losses no tools like bankruptcy to force them to restructure and protect the taxpayer from losses. this reform gives us that shouldty. a type of bankruptcy regime. banks should be paying for the costs of bank failures. we should be able to put them able toheir misery without ausing catastrophic damage to causing catast a whole. > lastly, this has been an odd week for the obama dministration, not necessarily t your department. given the debacle with shirley sherrod and the agriculture department. thepresident said this is a teaching moment for him and his administration. did secretary vilsack said the same thing. did you learn anything from watching your colleagues go r colleathis? >> as the president said, i think you saw a general rush to eral rush everywhere. in the press and outside the e, it' i agree, it's something we should all take caution from. and look at these things and looky. he spoke to that, i thought, oiningearlier this week. >> secretary geithner, thank

task of good government to help its citizens in need but make sure you send the bill to countrywide, aign and 90% of wall street. >> people have been following this closely. they know where that money has been going. michael on facebook says yes, they should. they also need to make sure that people who are unemployed are out looking for jobs and that they have services that would help in their job search. >> ann says yes, i exhausted my benefits the first week of february and drained my retirement to stay afloat. >> pat on facebook says, absolutely. in the majority of case it's not fault of those who are receiving it, it's mostly the fault of large corporations sending jobs out of the country and ceos making far too much. they should cut their own salaries rather than jobs. >> let's get a check on what's coming up later on the early show. erica hill joins us now from new york. good morning, erica. >> good morning. >> good morning, john and sydnie. >> always nice to hear you in my ear. this morning we have an exclusive interview with michael lohan talking about his daughter lindsay lohan

so a picture like aig that had a subsidiary in london, that was basically beneath the radar. now the fed will have the ability and a mandate to find out about those firms, so that's good. the transparency for derivatives, bringing those complex transactions into more daylight and giving regulators the ability to look at them, that's also good. >> they're going to be traded, some of them, will now be traded on the open exchanges. and lynn stout, what do you see that's positive in here? before we get to the other side. >> well, i think one of the most promising developments will be the creation of the new consumer financial protection agency. although the key thing, the key question there is who is going to be put in charge of it. the first person to be made the head of this consumer financial protection commission is going to have a definitive impact on whether the agency is effective or not. the leading candidate is clearly elizabeth warren. the agency was her idea, it her brain child, she's a long-time consumer advocate. she would be probably a very effective watch dog. but

. $10 million from insurance giant aig. rangel denies any wrongdoing. before the charges were read he told the reporters it may be a tougher time than he fought in the korean war. >> after i survived that i hadn't had a bad day since. today i have to reassess that statement. >> 20 people expelled from congress. only six since the civil war era. there have been 40 reprimands and censure. the most recent reprimand, joe wilson who yelled "you lie." at president obama. >>> this morning, president obama's critics have more ammunition be ever as he rice focus on cars and the economy. cbs news senior white house correspondent bill plante joins us with more on that. bill, good morning. >> reporter: good morning, erica. the president is headed to detroit today to talk up recovery in the auto industry. also, to try to get control of his own message. for the last couple of weeks, the white house spent a whole lot of time responding to its own mistakes. like the firing of agriculture department officials shirley sherrod. >> i knew it was racism when it happened, no

firms like aig placed massive, risky bets with borrowed money. and while the rules left abuse and excess unchecked, they also left taxpayers on the hook if a big bank or financial institution ever failed. now even before the crisis hit, i went to wall street and i called for comment-cents reforms to protect consumers and our economy as a whole. and soon after taking office, i proposed a set of reforms to empower consumers and investors to bring the shadowy deals that caused this crisis into the light of day, and to put a cap -- put a stop to taxpayer bailouts once and for all. [applause] to day, thanks to a lot of people in this room, those reforms will become belote the land. for the last year, chairman barney frank and chris dodd have worked day and night -- [applause] barney and chris have worked day and night to bring about this reform. and i am profoundly grateful to them. i would be remiss if they did not also express my appreciation to senator harry reid and speaker nancy pelosi for their leadership. it would not have happened without them

the expectation is we will hear the citigroup, goldman sach, aig, companies that received a lot of ofour tax dollars, got big bonus payments at the height of the crisis. >> rebecca jarvis for us this morning. thank you. >>> dave price is off today. lonny skwin here with the first check of the weather. good morning, lonny. >>> hey, thank you, lonnie. well, good morning! good friday morning.wake up. a slither of sunshine in san jose. but as the morning wears on, we'll see more sunshine and less clouds down in the south bay and pretty nice temperatures today. highs in the lower 80s. speak of your temperatures, let's take a look. near 90 inland, nothing but sunshine. a few more clouds around the bay with the mid-60s. and cloudy with fog for the coast, in the lower 60s. more sunshine and a foggy coastline for the weekend. >>> that's your latest weather. with all this tough weather, nicest spot in the country, portland, oregon. 82, mostly sunny skies. >> far away. >> headed to portland. >> thank you. >>> coming up, guess what, caught on tape. a tourist gets trampled by a bison at yellowston

so that we do not have another lehman brothers or aig. the kind of complex and backroom deals will finally be brought into the light of day. from now on, shareholders and other executives can note that shareholders will have greater say. they can reward success instead of failure. they can help change the perverse incentives that encourage reckless risk-taking. wall street reform will bring greater security to folks on main street. the families were looking to buy their first homes or send their kids to college, to taxpayers and should not have to pay for somebody else's mistakes, to small businesses, community banks and credit unions to play by the rules, to shareholders and investors who want to see their companies grow and thrive. already, the republican leader in the house has called for a repeal of this reform. i would suggest that america cannot afford to go backwards. i think that is how most americans feel as well. we cannot afford another financial crisis just as you're digging out from the last one. when i took office, we cannot

position on the powerful ways and means committee to raise money from big wall street corporations like aigand goldman sachs that had business before his committee. as for rangel he insisted he has never knowingly broken the rules of the house, violated them in any way. watching him, you could see that he understands the seriousness of these allegations. >> years ago, i survived a chinese attack in north korea. and as a result, i vowed that having survivored that, that i haven't had a bad day since. today, i have to reassess that statement. thank you. >> reporter: the rangel ordeal has already been a major embarrassment for democrats but it will become a much bigger one if the committee goes forward with plans for a big public trial of rangel that will take place in september. that's right in the middle of the campaign season. rangel's lawyers are trying to negotiate a way to avoid that by some kind of a settlement that would admit some wrongdoing. right now all systems are go for a public trial of charlie rangel before the ethics committee in september. jonathan karl, abc news, capitol hil

would think of not helping us when you have the stimulus package is, helping out all these things, aig and those people, and we cannot get the check that we turned and nothing is being done about that. held up and held up. i just feel my senators are really let me down. it is hard right there. losing our place again. then when where it -- where are we going? host: thanks. hard to find anything to say when people share stories like that. good luck to you. thank you for calling. omaha, nebraska, dave calling on the democrats' line looking at the unusually uncertain economic outlook. you are on the air. caller: hello? good morning. i want to tell you. i started working in the 1970's. if you could get a job, and it will ask ken starr now, i will start tomorrow. in the 1980's we started exporting jobs. giving tax breaks for countries -- companies to leave the country. now we are in a situation right now. the other day i called one of these guys -- bush did not get his agenda done because we got attack on 9/11, i go, he got the agenda down, gave away 6.5 million jobs and import 30 million me

next to him shannon darcy from aig. next to shannon, quentin gray from the u.s. department of agriculture. next to quentin, raul artiste who just joined us from the department of homeland security and next to him, chemical or on her last day is the state department staff where she is going onto council of foreign relations fellowship. the six agencies not hear our cia, joint chiefs of staff, fbi and the office of the secretary of defense. no office of the department's history is have this interagency and this is designed-- i brought them here today mr. chairman to illustrate to you that as distinctly as possible that we have a whole of government approach here and there is very good civilian military coordination. on the second row, our afghan political expert and a former member of the united nations team. tim linda king our new pakistan country director and our new afghan country director. so, with that team behind this mr. chairman, we have embarked on full implementation and close coordination with centcom and isaf and the american embassy in kabul of the eff

firms like aig place massive risk- taking invest with our money. roles left abuse and access unchecked they also left taxpayers on the hook if the big bank or financial institution built. now even before the crisis set i went to wall street and i called for common sense reforms to protect consumers and our economy as a whole. and soon after taking office uproars a set of reforms to empower consumers and investors. to bring the shattered deals that caused this crisis and light of day. to the stock to a taxpayer bailout ones and fraud. (applause) today, thanks to a lot of people in this room those reforms will become the law of the land. for last year chairman bernie frank have worked day and night. (applause) (applause) (cheering) (applause) (applause) >> bernie and chris have more to the ana to reroute this reform. i am from a grateful to them. i would be remiss if i did not also express my appreciation to senator harry reid and speaker nancy pelosi. (applause) it would not happen to them. (applause) (applause) passing this bill was no easy task. t

so we do not have another aig. that is what this reform will mean. it does not mean that our work is over. but -- for these new rules to be effective, regulators will have to be vigilant. we may need to make adjustments along the way as our financial system adapts to the new changes. no law can force anybody to be responsible. it is still incumbent on those on wall street to keep the lessons of this crisis in terms of how they conduct their business. the fact is that every american, from main street to wall street, has a stake in our financial system. wall street banks and firms, investment capital, makes it possible for startups to sell new products. they provide loans to businesses. they backed mortgages for families purchasing a new home. that is why we all will stand to gain from these reforms. we all win. when investors around the world have confidence in our markets, we all went when shareholders have more power and information. we all win when consumers are protected against abuse. the olwen when folks are rewarded based on how well they perfo

and for those seven companies, aig, citigroup, bank of america, chrysler, chrysler financial, gm and gmac, congress said, treasury, feinbe, set the pay of the top 100 officials in each ofhose seven companies until they repay the taxpayer. once they repay the taxpayer, they are out from under your thumb. so in 2009 i at the request of th secretary, i determined and calculated the actual dollars for each of th top 25 officials those companies, and we established a regiment of pay for -- regimen of pay for individuals 26-100 in each of those seven companies and only those seven companies. i did that in 2009. citigroup and bank ofmerica, for reasons you can ask them -- one being to get out from under my thumb -- borrowed money from the taxpayers to get out from under my jurisdiction, and they did. so in 2010 there were five companies. chrysler financial which is in runoff, they're out from under my thum so today as we heat here this morning, there are on four companies left. but as to those four companies, unti they repay the taxpayer their pay will be established by a treasury official.

and for those seven companies, aig, citigroup, bank of america, chrysler, chrysler financial, gm and gmac, congress said, treasury, feinberg, set the pay of the top 100 officials in each of those seven companies until they repay the taxpayer. once they repay the taxpayer, they are out from under your thumb. so in 2009 i at the request of the secretary, i determined and calculated the actual dollars for each of the top 25 officials in those companies, and we established a regiment of pay for -- regimen of pay for individuals 26-100 in each of those seven companies and only those seven companies. i did that in 2009. citigroup and bank of america, for reasons you can ask them -- one being to get out from under my thumb -- borrowed money from the taxpayers to get out from under my jurisdiction, and they did. so in 2010 there were five companies. chrysler financial which is in runoff, they're out from under my thumb. so today as we heat here this morning, there are only four companies left. but as to those four companies, until they repay the taxpayer their pay will be established by a tr

so that we do not have another lehman brothers or aig. the kind of complex and backroom deals will finally be brought into the light of day. from now on, shareholders and other executives can note that shareholders will have greater say. they can reward success instead of failure. they can help change the perverse incentives that encourage reckless risk-taking. wall street reform will bring greater security to folks on main street. the families were looking to buy their first homes or send their kids to college, to taxpayers and should not have to pay for somebody else's mistakes, to small businesses, community banks and credit unions to play by the rules, to shareholders and investors who want to see their companies grow and thrive. already, the republican leader in the house has called for a repeal of this reform. i would suggest that america cannot afford to go backwards. i think that is how most americans feel as well. we cannot afford another financial crisis just as you're digging out from the last one. when i took office, we cannot

i have ordered the aig to do that. i know his people and he will comply, but we have to take lessons learned, and where we find deficiencies in our contract oversight process, we will apply it across the army, as well. >> and the veteran the administration runs 130 national cemeteries. and the district i represent the beaufort national cemetery, the jackson national cemetery that was promoted by my predecessor, the late chairman floyd spence. the cemeteries have not had such problems as the been uncovered at arlington. do you see any benefit in bringing arlington national cemetery under the veterans of administration? >> well, as i responded to the chairman in one of his opening questions, " i have the highest regard for the secretary. he has been enormously supportive in the army efforts to try to rectify this situation, as you noted. they are on a very substantial network of cemeteries, and i know they do a fine job, as well korea i also mentioned there are other agencies also, the department of interior and others.

country was put in intensive care through no fault of their own, ding finehile others were getting, at aig and other big firms, major bonuses of billions of dollars for running our country into the gutter. again, one of the things we did not talk about yet this morning is that a lot of people at the beginning of this week were saying "the sky is going to fall and we will move from 9.7 to 9.9." i heard it all week. not a mumbling word yet about the fact that the unemployment rate went down to 9.5. hello. rooting for the home team. we still have a lot to do. but the fact still remains that we have come a long way. and the chairwoman is right. we are going in the right direction. and i think that this congress can work with this president to speed that process up. and so i choose hope as opposed to fear. with that, madam chair, i yield back. >> thank you very much. i would now like to introduce dr. keith hall. he is the commissioner of labor statistics for the united states department of labor. that is an independent, national, statistical agency that connects, processes, analyzes, and dissem

others include well known names like aig and sun trust who haven't paid it back. citigroup was highlighted according to "the new york times" as the worst offender. two-thirds of its several hundred million in bonus payments, that year, went to just two people. one of them named andrew hall. they no longer work for the company, but he is the only name that we know of the 600 people highlighted in this report. we do not have names. >> so in terms of going forward from here, anything feinberg or the fed can do to make sure this doesn't happen again? >> meredith, that is the key question. the answer is no, which may surprise a lot of people listening. he was obligated to investigate these packages and put his results out. he doesn't have the legal authority to go and say, hey, give us this money back. what is he doing to the banks, he is proposing a break provision so in the future the government would have the right to take the money back. if this ever were to happen again in a financial crisis. now, since the bonus payouts were paid at the end of 2008, a lot of thes

country was put in intensive care through no fault of their own, doing fine while others were getting, at aigur country into the gutter. again, one of the things we did not talk about yet this morning is that a lot of people at the beginning of this week were saying "the sky is going to fall and we will move from 9.7 to 9.9." i heard it all week. not a mumbling word yet about the fact that the unemployment rate went down to 9.5. hello. rooting for the home team. we still have a lot to do. but the fact still remains that we have come a long way. and the chairwoman is right. we are going in the right direction. and i think that this congress can work with this president to speed that process up. and so i choose hope as opposed to fear. with that, madam chair, i yield back. >> thank you very much. i would now like to introduce dr. keith hall. he is the commissioner of labor statistics for the united states department of labor. that is an independent, national, statistical agency that connects, processes, analyzes, and disseminates its central statistical data to the american public, the united s

for those seven companies come at aig, citigroup, bank of america, chrysler, chrysler financial, gm, and gmac, congress said -- treasury, ken feinberg, set the pay of the top 100 officials in each of those seven companies until they repay the taxpayer. once they repaid the taxpayer, they are out from under your thumb. so in 2009, i, at the request of the secretary, i determined and calculated the actual dollars to each of the top 25 officials in those companies, and we established a regiment of pay for officials 26 to 100 in each of those seven companies and only those seven companies. i did that in 2009. citigroup and bank of america, for reasons you can ask them -- one big to get out from under my thumb, borrowed money to repay the taxpayer so they could get out from under my jurisdiction, and they did. so in 2010, there were five companies. chrysler financial, which is in the runoff -- they are out from under my thumb. so today, there are only four companies left. but as to those four companies, until they repaid the taxpayer, their pay will be established by the treasury official

country was put in intensive care through no fault of their own, doing fine while others were getting, at aig and other big firms, major bonuses of billions of dollars for running our country into the gutter. again, one of the things we did not talk about yet this morning is that a lot of people at the beginning of this week were saying "the sky is going to fall and we will move from 9.7 to 9.9." i heard it all week. not a mumbling word yet about the fact that the unemployment rate went down to 9.5. hello. rooting for the home team. we still have a lot to do. but the fact still remains that we have come a long way. and the chairwoman is right. we are going in the right direction. and i think that this congress can work with this president to speed that process up. and so i choose hope as opposed to fear. with that, madam chair, i yield back. >> thank you very much. i would now like to introduce dr. keith hall. he is the commissioner of labor statistics for the united states department of labor. that is an independent, national, statistical agency that connects, processes, analyzes, and dissem

were they out to get aig? >> i do not know what was going on at goldman side. >> they need the money. were they going to get it out of you. >> i do not know what was on the other side of the goldman trade. i do know that old man kept coming to the table with us. as they came to the table, and this happens over a long time, they can reducing the collateral cost. >> then you left aig. clearly, the negotiations structure changed. >> are you asking me why i left? >> i do not think i'm supposed to, but i am pondering it. [applause] what would you ponder? [applause] >> if we can ponder this together. >> just you and me. [applause] >> in a couple of cameras. i -- after the material we was -- [unintelligible] mr. sullivan asked me to come and see him. he'd tell me that changes needed to be made. he did not think our behalf the with the changes. he suggested that i retire. i did. >> ok. maybe it should have been at a higher level. >> one thing we will want to follow up on is this issue of the continuing to write cs. cd