it's about letting the banks bas snap up the smaller banks. it's about more consolidation in the banking industry. it's about banking profits and expanding executive bonuses. sure as heck isn't about increased funding. these banks are sitting on mountains of cash that they could land at any time. just look at their profits. they made more than two and a quarter billion dollars. some trust pocketed a cool 2.3 billion clocked in at 1.3 billion. instead of lending more money they have been plowing their massive m earnings in two beanstalk finances. just last month they announced spending an additional $745 million torc repurchase stock. theyrd authorized a to buy back $3 billion in stock. every single one of those dollars could have been put to this new small business loan but instead it went to putting bigger bonuses and the executive's pocket. does anyone think if they have more money to burn that they will completely change course? to ask the question is to answer the question. and they are not exactly acting like they are starving for cash do

banks.anks. here i think there are three pillars, regulation, supervision, bank culture, , tht almost play an effective role. regulation establishes what is legally permissible for banks to do. supervision helps to reinforce those rules and evaluate whether the banks controls and other processes are conducive to safety and soundness. and bank culture sets out the norms for what is appropriate behavior. but the st. andrew's pillars are mutually reinforcing. regulation and supervision, for example, attempt to address various market failures in banking that can contribute to excessive risk-taking. bank culture in turn helps extend bush norms in areas were regulation may be silent. so in this way regulation, supervision and bank culture are complements and deficiencies in any one of the three can be problematic. for example, as we've seen in cases of unsafe and unethical behavior in recent years, strong regulation and supervision cannot substitute for deficiencies in bank culture am especially n

are trillion-dollar banks to banks that are $50 million banks. what this bill is attempting to do is right size a lot of those regulations so our community banks around the nation can do what they do best, and that's lend in their local markets. since dodd/frank passed, we had many of our banks drop out of the morning business because it was too complex. too many rules. so a lot of the rules in this bill that are being changed are addressing the morning lending space. so keep those community banks in mortgage lending. if you're only 50 or 100 mortgages a year as a community bank and you have to do tens of thousands of dollars of new regulations, you're going to reassess and maybe drop out of that business, which kind of defeats the whole purpose of dodd/frank, was to rein in the largest banks and control systemic risk. if you have more small community banks leaving the marketplace and scaling up, then you're left with only a handful of banks at the end of the day and you have great systemic risk. so one of the things i like about this bill is red

those banks are not community banks. but now a decade after the financial collapse of 2008, we're saying that it's probably okay. we're pretty sure they have learned their lessons. we're pretty sure that's how the big banks will put the economic security of the country ahead of their own profits. so bottom line, this bill, the economic growth, regulatory relief and consumer protection act, will increase risk to our entire economy. and the fact that the words consumer protection are mentioned last should make clear that they are simply an afterthought. but when large institutions fail, whether it's lehman brothers, enron, a.i.g., it is everyday working consumers who get hit the hardest and pay the highest price. it is the rule on wall street, on the way up the big guys clean up. on the way down the little guys get cleaned out. and we saw that during the last financial crisis when millions of americans lost their jobs or their homes. and we are seeing it today with increasingly common data breaches that common -- that comp

, the community banks and the regional banks. i have three, i mean, my state, senator portman state and mine are the only one set of three regional banks, the banks that are 50, 100, $150 billion, huntington, keycorp and third. this bill started off the way but it's gotten to be something else and do something else is that this bill seems to me and many of us more concerned with the largest banks in wall street that does with community banks. and there are lots of things that could come out of this bill. the bill gives regulators weigh too much flexibility, regulators like mulvaney and corals and others. it vest more power in fsoc him something the republicans didn't want to do until they got regulators like people like that that are much more likely to side with wall street that the white house is increasingly looks like a a retreat for wall street executives, and these arl the people that are going to be doing the regulations in this bill.ee but republicans and democrats alike who believe in the need for regulation are concerne

it's about letting these banks snap up smaller banks. it's about more consolidation in the banking industry. it's about goosing banking profits and expanding executive bonuses. it sure as heck not about increased lending. these banks are sitting on mountains of cash that they could lend at any time. just look at their profits. bb&t made more than $2.25 billion. suntrust pocketed a cool $2.3 billion. m&t clocked in at $1.3 billion. i could go on and on. in fact, instead of lerchedzing more money -- of lending more money, these banks have been plowing their massive earnings into stock buybacks. just last month m&t bank announced it was spending an additional $745 million to repurchase stock. a few weeks later, fifth third authorized buying back $3 billion in stock. every single one of those dollars could have been put to new small business oans or could -- small business loans or could have been put to home mortgages. instead they went to goosing the bank's stock price and putting bigger bonuses in executives' pockets. does anyone -- anyon

or deutsche bank, businessman trump's favorite bank. deutsche bank manipulated the interest rates. we're going to give deutsche bank a break? barkley's, british bank manipulated the markets in western markets. my constituents don't live in the areas that were hurt like that but a whole lot of people do in this country. swiss bank, credit swiss, who illegally did business with iran. i know what the presiding officer thinks of iran, the senator from arkansas, yet, all of us are going to vote for a bill that rewards a swiss bank that illegally did business with iran? is that the message we want to send? i guess it is. it goes on and on. we are rewarding these foreign banks who have defrauded our constituents and our government and clearly didn't have much regard for u.s. law, we're going to give them breaks? again, we've heard from governor tarullo, we've heard from former fed chair volcker. we've heard from bloom raskin on this. they don't want to lose the foreign bank oversight. they're joined by republican regulators, former regulators

they said that their banks should be treated like u.s. banks, not like the global banks they are. it was defeated in committee. let's look at the wrap sheet on some of these banks, santander failed the stress test three years in a row. it would have its rules rolled back under this bill. stress tests are exercises as my colleagues know are to ensure that a bank can survive an economic downturn without a bailout. so santander failed not once or tries, it failed three times. most people fail three times, they flunk out. they failed three times and they get a potential bailout. what is honorable or good economic policy about that, what is fair about that? what is just about that? it's a bank, in addition to failing its stress test, it's a bank that illegally resupposed cars from service men and women while serving our country. i spent time at the largest air force base in ohio and i see the financial institutions that prey on these young americans serving in the air force, particularly when they are 18, 19, 21 years old, they are more financially vulnerable, a little less sophisticat

counties have only one bank, and that one bank is a community bank, a small bank. the more time, the more money, the more staff that community lenders have to dedicate to complying with needless regulations, the less ability they have to provide the kind of service you'd like to provide. the president of the missouri bankers association, max cook said this commonsense legislation, talking about the bill that i'm pleased to be a cosponsor of, this commonsense legislation will allow banks to better serve the needs of customers and businesses in our communities. he went on to say that financial regulatory reform will unleash america's economic potential. that's the end of his quote, but i think you could add to that that lots of good things are happening in our economy right now. the tax bill, the regulatory commonsense regulation that's overcoming a regulation that didn't make much sense, access to capital is a critically important part of what you have to have to have a growing economy, and access to capital in small communities as well as access to capital in big c

they are regional banks. fifth third bank, huntington bank, and key bank. they are all examples of well-capitalized ohio regional banks that will benefit from this legislation, and the benefit will go to their thousands of employees, but it will also go to their many thousands of customers. this legislation also increases important consumer protections for veterans, senior citizens, victims of fraud, and those who fall on tough financial times. another thing i like about the legislation that is particularly important to me is it includes a specific piece of legislation i authored to make it easier for a group called habitat for humanity to carry out their mission of providing safe and affordable housing to those in need. habitat's a great organization. i volunteer at habitat regularly. i see firsthand the great work they are doing back in my home state of ohio. the legislation is called the housing opportunity made easier act, or home act. it simply ensures that habitat affiliates and other organizations, nonprofits, can receive donated appraisals of the ho

in the u.k., there is a survey of banks the banking standards board does.nk it would be great to have something like that. getting a set of information allows you to benchmark your performance relative to others. ensuring people respond to that survey that is truly an honor my -- anonymized, i think you would be able to apply the information to see where you are strong and weak relative to competitors. >> you also talked a bit about regulations defining what is good or bad. people are becoming too reliant on what regulations are saying and that there should be independent judgment. can you flesh that out a little more? >> the example i would be -- i would get would be the one of lehman brothers with the repo 105. legally permissible, but against the spirit of the rules and designed it to distort people's assessment of their balance sheet. if you have a good culture, you're going to say i can do this, but it is misleading, it is unethical, so it is inappropriate. you do not want to be in a regime where the banks look at the regulators and say what is ever --

tiny community banks. again, not true. far from scrapping the rules, our bill simply provides that the federal reserve has the ability to tailor just one piece of dodd-frank, and that is section 165 regulations, and for certain regional lenders, that means that if they do not pose systemic risk, they will not be subject to the requirements of 165. but if the fed determines that they could, as in the case as you have heard of countrywide, if there is another countrywide out there and the fed discovers another countrywide, they can, in fact, include that institution in 165. and so let's not exaggerate the impact of this bill. let's talk about how we simply have moved the assumption from 50 or 100 to 250 in terms of what is systemically risky, knowing that the fed can always go back and include a smaller institution if they in fact see the challenges. i think the other thing that we need to point out about the dodd-frank regulations and consistent regulations moving forward is that our bill still requires ver

there is a change in how we treat bank holding companies. as a result of dad frank we have a concept of too big to fail. we're enshrined in law by having systemic institutions. these are officially designated too big to fail. no institution should be too big to fail. it happens automatically when a bank it's $50 billion. that's a low threshold. this legislation takes that up to $250 billion. should be automatic. the size of the institution but driven by the conduct of it. at least we are raising the threshold from 50 to make $250 billion. this is problematic for banks that are larger than 250 billion. they have an onerous complex, expensive regime they have to comply with when competitors might be smaller relieved of this burden. there's no fairness in this. i intend to work with regulators to basically have this designation reflect the activity of the institution rather than just the size. another provision section 402 slr is a minimum capital ratio they say well regardless of what those consistent will have a minimum capital requirement th

and in my state, citizen's trust bank r bank is a minority-owned bank in atlanta. why is that important? you may have heard of that bank. martin luther king, jr. was a customer of the trust bank and martin luther king, sr. served on its board. many distinguished atlantaens and georgians have been customers. and citizens bank has forced to withdraw, and that's counter intuitive. thanks to the action, the u.s. senate, citizen's trust will be able to grow mortgage position because of safe harbor provisions in the plan and citizen's trust is not alone. a minor-owned bank serving savannah, georgia, for 90 years, mr. president. the restrictions and regulatory uncertainty on reciprocal deposits have limited its resources. this bill we're voting on this week with more than remove government restrictions on reciprocal deposits, meaning carver bank and citizen's trust and many others will have additional lending capacity and lower compliance costs, which is another way to provide more capital to the community. this bill was written by both democrats and republicans. and it's

small town, small bank, $43 million in total assets. that's pretty small as banks go. there's about 900 oklahomans, there are farmers, ranchers, folks that some people in this room fly over. there are good families that live in that great town. many have great credit scores and have and pay the bank back. i've been a long-time customer of this bank and in many instances the bank employees and the people in the bank have grown-up together. they know each other, but they also understand seasonal income. when you're a farmer or rancher that doesn't come in with a w-2 every single week or every month, it comes in seasonally, so they understand the credit risks there. a banker there named debbie wrote me this. between the ability to repay the global cash flow analysis, particularly a bank of these size, they are taking time away on what needs to be done, caring for our customers. we have 12 employees. we're treated the same as j.p. morgan chase or goldman sachs both of which have a different business model of operating. they don't operate in towns of 900 people. that's not

banks are doing relative to the large foreign banks, it seems u.s. banks are doing fine. is regime we have in place mick and the u.s. banking system safer and not an peening -- impeding their ability to be competitive. let me ask people in the room today, what is the one message you want them to leave with? chair. dudley: it is not just regulation, it is not just supervision that is sufficient. you also need to focus on incentives. incentives drive bank conduct and culture. conduct and culture is important for banks not getting into difficulty. that is my message. >> thank you. [applause] [indiscernible] will him and live coverage will continue at 2:00 eastern with the white house briefing. then a discussion on gunfire and and the second amendment. this evening's discussion on privacy concerns raised by widespread surveillance and the use of data by big government corporations. one of the topics is expected to be the improper use of facebook data. live coverage from arena stage in washington, d.c. gets underway 6:30 eastern on c-span. casesight on landmark aynerightor gid

in march, 2014, the fdic accused 16 large banks, including bank of america, citigroup, j.p. morgan chase, of fraud and conspiracy in an epic plot to manipulate bank-to-bank interest rates that underpin at least $350 trillion in global financial transactions. in april of 2011, wachovia was fined for laundering billions of dollars in illegal drug money. federal prosecutors said, quote, wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations, end of quote. that's from the federal prosecutor. the fine was less than 2% of the bank's $12.3 billion profit. and on and on it goes. mortgage fraud, money laundering, currency manipulation, bribery, conspiracy, rate tampering, collusion. these are the routine practices of wall street. they're not the exception. this is their business model. madam president, our country can no longer afford to tolerate the culture, the culture of fraud and corruption on wall street. let us never, ever forget -- although i fear many people have already here in the congress, an

rishaad: within those banks, andicularly rural banks other banks buying those banks if they see a businessfor the time being we are more likely to see a bunch of smaller banks coming together and becoming a somewhat larger bank, but the possibility of a large bank buying at the smaller banks, that is our base case scenario for the time being. for the large banks, even though they have capital raising plans that are in the pipeline or announced, they do have requirements that they would need to comply with, even though there is an extended timeline for chinese banks. bid,ssuances can be quite so i don't expect even the large banks to be too active on the acquisition front. haidi: what about increase takes from foreign financial companies? the government has been more open to that. is that appealing? yes, allowing more foreign lenders to acquire larger stakes in banks, i think that would be consistent with the financial liberalization in china. certainly these smaller banks, if they are able to attract foreign lenders, and that process helps improve the overall governance of the banks, that

i know banks in mansfield, ohio, the locally owned bank. i know that mechanics, the name of that bank. i know they work hard for their -- i know they work hard for their customers. they know their customers. small banks work with their customers. they lose a job or face a sudden illness. the bank can try to work with them to figure out how to avoid foreclosure. would a megabank in cleveland or columbus or dayton do the same kind of thing? based on the record of secretary mnuchin's bank, onewest and others during the crisis, we can be pretty sure we know the answer to that and the answer is no, they won't. the bill before us gives lenders a pass on the requirement to escrow for taxes and insurance when making subprime loans. it doesn't cost real money to the lender to put money aside for taxes and insurance. it's part of the calculation when you buy a house. most of us want our taxes and insurance included so we have a more predictable stream of outflow, if you will, we know how much we're paying each month and it doesn't change. it may chan

. >> nonsense, it provides released to midsize regional banks and small banks, not restricting regulatorsrom going down the chain and identifying practices that need additional regulations. instead of assuming you have overregulation, do it when the behavior of the banks were instead -- warrants it. wants to saywarren banks that took community bailout money should be exempt from this regulatory. >> she never saw a regulation she did not want to know to a banking industry that is not already overregulation, we want to get community banks back in business as we have seen a dramatic fall in the number of community banks that have a personal relationship with the people seeking financing. it is the wrong way to take this. we have bipartisan support by this bill because we think it makes sense at it is the right size with a positive affect on the banking sector. >> i interviewed a congressperson that said they would like to see changes once they get into congress -- conference. >> hopefully we get into that and ideally we would like to send a bill to the house that would be well received and s

and the food bank has started turning away foreigners ever since then food banks reputations have suffered across the country. i'm the one at first they said the so-called freeze for new admissions was due to how aggressive some of the young men were becoming that's completely fine i think people need to protect themselves but now they've turned it around and said it's directed completely against foreigners i don't agree with that. on each tour the pensioners visit nine supermarkets. cannot tell oh we're from the cologne food bank do you have any food stamps for us today. since it's ninety kilometers in total we'll have to see which order we do it in and if we can manage it all in one trip i guess i'm best off here i could wind up for us in iowa to work including. we have three distribution centers want to wait. school. but they don't cook themselves so they only accept dry food bread and dairy products. then there are two ordinary distribution centers for those in need. at the first supermarket is braced for disappointment in the past years the supermarkets of optimized their purchases me

are trillion dollar banks and banks that are $50 million banks. bill is attempting to right size the regulations are community banks around the -- do whatt do that they do best and that is land in local markets. since dodd frank past, we've had many banks drop out because it was too complex and too many rules. a lot of the rules that are changing the mortgage lending space to keep the community banks in mortgage lending. doing 50 or 100 mortgages a year as a community bank and you have to do tens of thousands of dollars of new regulations, you will reassess and maybe drop out of that business, which defeats the ,hole purpose of dodd frank which was to rein in the largest blanks and control systemic risk . if you have more small community banks leaving the marketplace and scaling up, then you are left with a handful of banks and you have greater systemic risk. one of the things i like about this bill is reducing the regulations on community banks so they can stay viable in the marketplace and extend credit which is really the lifeblood of many comm

waste bank. -- taste bank. --based bank. and -- either, if you want to respond now or you can respond in writing soon. >> why don't we take those under advisement and give you in -- give you a response in writing. >> that concludes the questioning. i want to thank you, chairman powell,. for senators, who wish to submit questions for the record, those questions are due on thursday, march 8. thato want to apologize because of the pressure we have on the boat, i'm going to have to conclude this hearing and run to the floor, so i won't be able to visit with you privately or personally after your testimony. we will have 20 of opportunities to do so. with that, the hearing is adjourned. announcer: we also cover the fed chair. you can find that at c-span.org. from the wall street journal saying president is expected to announce new tariffs on steel and aluminum. a person familiar with the matter said despite signals from inside the administration wednesday night, such a move was planned, we can tell you that the white house is livi

that means these banks are more likely to jeopardize the banking system. we know what happened when we had to bail them out. the headline is senate banking bill likely to boost bailouts why would we do that? when banks are doing well we just it attacks bill that gives the largest banks overall but especially it gave huge tax breaks so we are going to pass a bill that they say will cost taxpayers $672 billion and will increase the chances of a bailout. why would we pass it to give them brakes and then give them money of taxpayer dollars? i don't understand why we would want to do that. nobody in ohio except bank executives are clamoring for this. nobody saying that we have to help these banks that drove us into the ditch ten years ago it doesn't make sense i asked for a no vote on the motion to proceed. >> senators return tomorrow to continue debate on the bill that repeals parts of the regulation law. the legislation exempts banks with the return 50 billion in assets from heightened regulations. follow the senate live at 9:30 a.m. eastern. >> wednesday mor

and global banks as well. what we want is accountability. we want less, less federal control. and what we want is more private capital. and we want to ensure there are never more taxpayer bailouts. and again, as i said earlier, as this so-called parade of horribles was brought to the attention of the house, why is it a majority of democrats on her committee support this legislation? 16 of them support the legislation. i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. the gentlelady from california is recognized. ms. waters: thank you very much. mr. speaker, members, i always have these lively debates with my chairman and he never fails to point out that i voted for the bailout. and of course, you know, oftentimes when he comes with one of these deregulation bills and talks about bipartisan and had democrats. it was voted by republicans and democrats at a time when we were in great difficulty in this country, it was the bush bail out and mr. paulsen who w

employees aren't always prepared when the food bank comes by for the donations. but do you have the case. this time georg and his colleague have to sift edible food out of a trash bag. again or gets upset about society's throw away mentality he says the so-called best before date prescribed for perishables is part of the problem the way it. is sure that may make sense for raw meat and fish was not a fruit tell a vegetable bought in canned goods but. that makes no sense to me. meanwhile doris runk is waiting at one of the distribution centers for georg's delivery to arrive and she's already gathered a few crates of fruit on her way over. that's where it is now i wouldn't want to eat this anymore and if i'm not willing to ease it then i don't want to hand it out to others either mala books but these beds some of bruised to have some spots that's fine. oh here comes the van i have to move like call. them coming. i mean how are you to. top the or if you got a lot today it. will not be complete sort of. the first people have already lined up and are waiting to be call

it's important to point out that the question, particularly about foreign banks, deutsche bank, banks that have been troubled and troubling, will be mostly deregulated under this bill. that's not really my question, but i want to point out that in spite of his chair of the federal reserve deposit general satisfaction with this bill, there have been serious questions raised against it and about it by former fed chair volker, former deputy treasury secretary blue raskin, by former , by chair sheila bair antonio weiss and the former deputy governor of the bank of england. it's important to note that it is not all, it is not all candy and roses, here. let me talk about a couple of other things. unemployment rates that are steady, as you know, have been slow to approve. a her confirmation hearing you mentioned that labor force participation for prime age workers was lagging. two questions related to that, do you think it's possible to achieve further improvement among workers that have been left behind without causing higher inflation? and would you commit to looking at all the data and co

this is for the smaller banks, not the bigger banks.nd there's a story out there that should be discussed, how stable are small banks really and it's adding fuel to fire. they are getting into the credit card business and a lot of small banks are ramping up exposure to low credit quality consumers. retail bankruptcies could also hurt commercial real estate lending. there are question marks as to the stability of these guys. david: it's encouraging mortgage lending again, cutting back regulation. the last time we did that, it didn't work out so well. alix: and this is not necessarily a done deal. david: there's a house version that is quite different. the house version is 600 pages and the senate is about 250 pages. the rule in the senate and repeals it out right on the house side and for orderly liquidation, the house size -- house side says this have them do bankruptcy. yesterday i talked with rob nichols down in washington and this is what he said about the timing. a utopia, then president is signing into something -- something into l

volatility is god for banks. if you think about this ped over the last couple of months but banks are still firing people. i don't think sales and trading is a good business i don't think the margins are there, i don't think the edge is there. i think bank are going to be making it in positioning and merchant banking: it's been proving speed compression is a higher margin. it's predictable. >> i disagree. trading size has gotten more fish and technology oriented which helped us cut cost i look at the back office functionality which is going to be eliminated when you look at the blockchain implementation. includes the cost cutting. there is a tremendous amount of cost cutting that happened in this model. >> are you talking clan point of view. >> i'm talking across the board. >> you think sales and trading is better off than it was ten years ago. >> no. but i think there has been a fat of cut out of the model and efficiencies created through electronic means of execution that offed a much more -- >> would you rathe

i's central bank's head said the indian central bank's head said the indian central bank's head saidbank needs more power. not able to regulate i's public sector banks. public sector banks dominate the space here and if they start to crack up, it affects the economy. thank you for the update. were the work, the public sector, manufacturing or services, the big focus is usually on boosting productivity. in a factory, as simple as buying more machines. can you technology help us work more effectively. we try out some of them. could a study of my brainwaves make the more productive? this company, mindplay, certainly thinks so. even when i go to get my lunch. we will find out later what the results are. here is another trend. we are producing vast amounts of communications data. telephone calls, emails, chat of all kinds what if we could analyse that they learn lessons about productivity? that is email dater. behavox monitors communications by bank workers mainly to spot any unlawful or unethical activity. but now is using artificial intelligence to assess whether your communications are

banks. banking assets have decreased and the five largest u.s. bank which don't benefit from our bill appeared to absorb much of the market m share. what i have said consistently dodd frank was sought -- supposed to stop too big to fail now it is too small to succeed. the big banks of the bigger the passage of dodd faith in the small banks have disappeared. and they have retreated from the traditional role of relationship lending out of fear from regulation and they can be doing something wrong and then fear for the cost of regulation working toward compliance. so i want to make one simple point this bill is not written bankers or lobbyists if it were it would be a completely different bill it actually provide to wall street bankers gives relief to those institutions whether regional or small community bank to be effective competition for the larger institutions in thee country. so it is absolutely essential we'd set the record straight that this bill is to give our relationship institutiona

the primary purpose is to make changes to simplify the community banks, credit unions and inside banks to promote growth. the u.s. economy has failed to grow by more than 3% annually for more than one decade. by far, the longest stretch since gdp has been calculated. now, widespread expectations that growth is picking up. according to the january meeting minutes the federal reserve to increase its expectations going forward after the fourth quarter exceeded expectations. the recently enacted is one of the reasons the growth is expected to rise. president trump's recent release budget both emphasize that regulatory reform is a key component of rising productivity, wages and growth. by rightsizing regulation the bill will improve access to capital for consumers and small businesses to help drive our economy. now that many are predicting a pickup and growth number of commentators expressed concern. while the reserve should remain vigilant we must pursue commonsense policies leading to increase productivity and wages. i'm encouraged that the federal reserve is continuing on its path to mon

bank of america, 3%, 4%. didn't deliver what they wanted and way more costs. >> most was not delivered. some was delivered by bank of america, which went to have responsible growth part of the derisking of bank of america and risky in the banking industry. >> can't believe it's that low today. >> which is the best deal, though >> oh, my. pnc buying national city that was a home run. a take underpropelling pnc to be one of the better performing banks of the crisis. we thought they paid too little for nashville city, but that propelled that regional bank to where they are today. >> taking about takeovers, mike, ten years ago. what about today a bill going through the senate at the hoemt could reduce regulation for smaller banks will that lead to a sudden bounce of consolidation in the industry >> absolutely expect bank consolidation to accelerate. you mention the bank bill. that would raise the sifi limit allows banks to get bigger without the rick sk of additionl oversight and scale mattering more than ever be

problem, yourge have a bank that is still not in the top five banks, under the top 15 banks of the worldit is difficult to find a person who is willing to do this. mark: some of the blame today has been laid at the door of the chairman. do you think he has to share some of the blame? o.aus: n you can say he has waited too someone withcing mr. cryan. he is acting very fast now. he wanted to avoid that he is blamed twice for the same mistake. vonnie: one top shareholder said that cryan is still the top choice to run the bank. betweene differentiate we haven't given him enough time and his strategy is wrong? klaus: we are still in the trenches of rumor. ctsdon't have clear faa that mr. cryan is to be replaced in the next month, for example. let's wait to see what the bank says about these rumors. did a real good job in solving the problems of the past. we are demanding that capital markets are demanding answers to the question what is the vision for the bank, what is the strategy for the next 3-5 years. only cost cutting is not the real strategy. vonnie: he does have a controlled growth str

banks, and 4.8% for larger banks. credit unions are expanding and they have increased their membership by more than 16 million since 2010 and in-- an increase of 18%. and you know, we oftentimes talk about what we're doing to the community banks. but we always -- you, rather, always have a way of making sure the big banks are attached to this deregulation you you want to do for community banks. all you have to do is amend this bill and make it apply only to community bank, would the gentleman who is talking about what the ranking member should understand and should be thinking about be willing to amend the bill so that only -- so that it only applies to community banks? that's reetore call, i won't ask for an answer. i reserve the balance of my time. the speaker pro tempore: the gentleman from texas. mr. hen sar lick: i'm pleased to yield two minutes to the gentleman from pennsylvania, vice chairman of the financialer is vesses subcommittee, mr. rothfus. the speaker pro tempore: the gentleman is recognized for two min

was the second bank load? >> one was the perception that they had a role in what was the main source of a 219. history is makes him how much damage it caused. momenter one is is the this was happening, the rumors andorruption misrepresentation of the bank particularly what branch was coming to a head. congress put together a report inand issued a january of 1819. they basically documented that the bank was terribly corrupt. it was terribly inefficient. simply not an institution that you would trust. out atthis was coming precisely the same point that the case was being set up to be argued for the supreme court in february. with the second bank of united states, particularly the bothmore branch, you alluded to the issues that have been at the heart of this debate since the founding. this became kind of a proxy for that discussion. >> absolutely. one of the instances of this around the country that added to the panic was to pass laws designed to drive the bank out of the territory. theland law was one of milder

banks. they protect more than a million acres of land. they sell wetlands credits cacti credits. credits even. wild lands is the biggest mitigation bank of the american west her annual revenue is exceed forty million dollars a year and litigation sells. way but again garter snake first salmon steelhead delta smell what. is once on hock for burrowing owl for desert tortoise elderberry longhorn beetle tadpole shrimp for. our customers are aware of the local solutions that we can provide now these customers will come and say i'm building a shopping center and i'm affecting burnell pools are in fact doing our borrowing our do you have something that can help pay off my requirements. so we take a look at our mentor we provide them a quotation for a solution and then we barter that those credits to them as in a non-tangible transaction we give them a relay for their liability as a certificate of good well. but how do these banks choose to invest in unprotect one species rather than another. happen

the focus is on deutsche bank and i get that, but bank after bank, they have to do their own restructurings a different story, but the same story, isn't it? elisa: you are right in the valuations tell us that you do not have as many banks now for example, trading at significant discounts. the book value we had a couple years ago -- but yes, those restructuring continue and to name a few that would probably include barclays here in the u k and some of the italian lenders as well. they are doing well in germany, but not in the u.s.. is that symptomatically of european banks or is that a deutsche bank problem. 2016 was a problematic year for the lender. we were asked about the stability of the lender and that is probably what was behind some of those outflows. tom: since we have got you here. does the italian banking story change the outcome of the italian election, or is it discrete removed? add a cloudes because the banks are a proxy for the economy and the recovery ande is still very nation lags behind some of the other european economy. this is not what the banks need right now. they are

a lot of banks talk about a bank group.had a large amounts of cash which connects to the savings accounts. group. it is higher interest rates and means higher income to the bottom line. is, our clients have exports. >> what can it add to the bottom line? we have a few lenders and some scenarios. 100 basis point is kind of the addition it would have for the net profit. everyone hundred basis point is very important for us. every 100 basis points is very important for us. >> for bond yields, there is discussion about where they are going to go. the you expect that kind of volatility to continue or where do you see u.s. bond yields going? beginningdi: at the of this year, they asked about the prediction for 2018. we have to look at the banks globally. liquidityus amount of . where the feds and ecb stands. and to me, that is the phenomenon. it is not the volatility that we are talking about. just got an investment banking license in saudi arabia. i know you're very a i did what is possible there. what are you planning? what els

bank itself. guest: i may draw a question out of it. one question that could be raised is, is a bank, which is not actually part of the federal government, is that an exercise of the interstate commerce clause? the answer for the history of the question has been yes. the answer for the history of one of the key issues of the decision and one of the arguments that maryland raised is this is not a government agency. this is just a corporation. it is organized by private parties for private profit and the answer to that was this is performing the function, regulating the credit of the united states and collecting taxes. congress is empowered to use whatever method it wants to do those jobs. host: this is the flip side of your description of marshall's early america. did this case blur the lines between the states? guest: the lines between the states or the federal government? host: he asked if it is between the states. did they loose some of their identity? guest: i do not think mccullough causes any

within the investment banking, there are more opportunities in the u.s. bank.think they are winning there. within europe, there is a simple story that the yield curve steepen's. that is beneficial for european financials on the whole. francine: do you like financials? well, it varies and we have had over exposure to financial they have had issues with rising interest rates and are has been more consolidation in some cases. however, in some areas, there is lower returns, which are going to come back because regulation is so high at various levels. that means that long-term you will not get much growth at of these areas, but at the moment, they are at a good balance for some of the higher momentum areas in the market. it is a good barbell, i think. investment banking per se will definitely have a lower return structurally. you like if financials, do you also bet on consolidation in europe, or would that be a bonus, but not the best case scenario? mike: i think it is a bonus, but not the base case. in europe, there is the potential for the steepening in the yield