reform of the banking sector, we speak to chairman of the us housefinancial services committee barney frank >>; the sheer volume of the bonuses makes it bogus when the banks argue they can't afford higher taxation. >>abirached: hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. the last few weeks have been especially tense for the greek government. pressure has mounted from the eu to manage the growing debt crisis and reduce the budget deficit, as greece found itself caught in a perfect economic storm. >>: greece has a fiscal mountain to climb. >>reporter: the country is struggling with a massive debt of just under 300 billion euros and a public deficit of 12.7 percent of gdp. >>: the scale of the problem is so huge it threatens the stability of the entire euro zone and already thcurrency has fallen to its lowest level in years. yet despite this the eu has made it clear it will not bail the ailing country out. but has approved greece's recovery plan. >>: the greek government is aiming to stamp down on corr

representative barney frank calls it a constitutional crisis. he helped push through a financial regulatory reform bill last year, but it's been held up in the senate. >> the problem with 60 is it biases the system against anything happening because these are controversial issues and, again, if the notion is we want to slow things down, then let's say here's the rule that slows things down. but you can't use the arguement that we want to make sure that things take more time for a procedure which says it can't happen at all. >> woodruff: for now, it's not clear there's any chance the senate will switch to simple majority rule. supporters would need 67 votes to force that change. now, we are joined by two former members of the senate: minnesota republican norm coleman served six years. he is now the chairman of the american action network, a conservative think tank. and south dakota democrat tom daschle was both majority and minority leader during his 18 years in the senate. he is now senior policy advisor for a washington law firm. plus, long-tim

made it into congressman's barney frank's imagination on "snl." >> you worried about a filibuster? because i'm about to fill a bust out of these jeans. >> reporter: he got into the head of the senate's oldest member. admirerers have put his image to music. ♪ i believe in miracles ♪ you sexy thing >> reporter: what's next? a nude action figure of the guy? well, actually, yes. herobuilders.com has rushed out the anatomically correct cosmo man and the real scott brown will be happy to hear that for $34.95 it comes with fig leaf included. talk about a politician with animal magnetism. the website urlesque found an uncan ny resemblance between th congressman and a come hither kangaroo. >>> let's take a look at the hot shots coming in from our friends at the associated press. pictures likely to be in your newspapers tomorrow. let's go to london. the british home secretary shows off some new shatter proof glasses aimed at cushing violence. >>> in baghdad a bomb-sniffing dg jumps over an obstacle during police training. >>> in bangkok, thailand, a young monk plays with pigeons in front of

repetitive barney frank thinks internet gambling should be legalized and regulated becoming a tax revenue for the federal government. >> many argue that we should respect the freedom of the internet. >> reporter: you won't find the chairman of the finances committee at a poker table, he does not gamble, but frank doesn't want the government tell people what to do with their own money announcing his push for the new legislation in december. >> individuals should be free to make their own choices. it doesn't apply for the individual right of adults to gamble with their own money. >> reporter: it's a $16 billion industry with the u.s. betters providing half of that revenue. potential federal money that supporters want to keep scott. >> why not capitalize on something that is already occurring. >> reporter: believed to make a difference for state governments. scott is president of the small resource center. he was also among the first in the coalition to support slots in maryland. >>> revenues is leaving the state because it's going to other states. >> reporter: now his approval for frank's b

mandela hansher ron perez and yasser arafat in today we retreated to the global banking industry and barney frank chairman frank, chairman of the house committee that deals with these regulatory financial issues. tell us what you told the bankers this morning and what they told you and whether what they told you makes any difference. >> yes and no. those in the financial-- one point we are making because we are talking about financial institutions. goldman sachs may decide next week not to be a bank that there will be no less, that will not get them regulation so that was a great point to the extent the large financial institutions tell us we should regulate, to the extent that takes that the need for regulation on in willing to work with us to make proposals about how best to do it, that will work well. i will give an example in this is evolving today. the question of banning proprietary trading by banks and in this case technical banks which we are quinn to go ahead within which paul volcker talked about. the committee that i chair-- many suggestions being made by mark karney of the canadian ba

markets but that seems to have disappeared somewhere now we have chris dodd and representative barney frank going with this idea from president obama to create a systemic risk regulator. dithered day they said rainy day system that critics and prevents future crisis. that is an impossible goal. they can only protect against the effects of a future crisis. >> keep it short. in the form of a question. tell us who you are and wait for the microphone. >> my name is roger. i would like to ask about three specific remedies to see if you are for any of them. bring back glass-steagall and break up the big banks and imposing leverage requirements. >> i will do the first to first because they go together. imposing leverage requirements and breaking up the big banks, another part coming out f congress is an amendment to allow regulators to identify too big to fail financial institutions and force them to break up but we cannot tell which institutions but the people said bear stearns was too big to fail seven years ago which is how far in advance you need to do these things. if we credibly end too big

obama's signing statements were so offensive to democrats that four of them -- david obey, barney frank, olowi and gre gregory meeks of new york wrote a letter denouncing the bush-like signing statements. the democrat-controlled house voted to oppose the signing statements. after opposing the bush surveillance programs, he retained them. the bush tribunal system for detainees he preserved them. i don't even have these on the board. not long ago after violating the no lobbyist works in the white house working there -- this got me. how many did we count the other day? 30. he had the audacity to bring up the lobbyistist thing in the "state of the union." >> that's why we excluded lobbyist from policy-making jobs or seats on federal boards and commissions. >> glenn: he has 30 in his administration. now we just showed you some of these lobbyists the other day, i don't know if we have pictures of them. he's showing them. okay. he repeated after this the non-existent fantasy figure of 2 million jobs created or saved. this is during the address again. then he went further. saying he was on trac

from congressman barney frank saying that he believe tlas the impasse declared earlier today betweennator shelby on the senate side will actually speed a vote in the senate to financial regulation or reregulation, reform. call it what you will. and that he expects the bill will finally move through congress by the summertime. so those headlines from senator frank that the impasse will actually cause a sooner vote. >> because he thinks it will force the republicans' hands. >> right. >> you got a member of the house trying to tell u.s. senators how they should be doing their job. it will be interesting to see what dodd thinks about barney frank's comments. >> see what the majority of 41 actually deal with this. >> i hate to be the bearer of the bad news for the bulls but the s&p is down better than 1% right now. we penetrated a key technical support level on the s&p and the dow is off almost triple digits, about 98 points on the trading session. you really want to stay tuned because we have plenty more on "power lunch." >> plus wake up and smell the bread and the food. some good news o

there is barney frank. >> looks like he's got the wind in his sails doesn't he?e has something open. >> his hair is sticking up. >> another guy who is usually pretty interesting no matter what he has to say. >> yes, he is. >> fed chairman ben bernanke set to speak. when he starts we'll have it. >> also testifying on capitol hill today the top of toyota, akio toyoda, himself. the grandson of the great grandson of the founder of toyota and toyota is the focus of our street poll this morning. the company says sticky pedals and floor mats are to blame. it is still investigating. do you agree? squawk on the street.cnbc.com. >>> oh, breaking news again! ben bernanke is speaking now in front of the house -- i mean it's breaking because we didn't know this was going to happen did we? let's take the testimony. >> concerted efforts by the federal reserve, treasury department, and other u.s. authorities to stabilize the financial system together with highly stimulative monetary and fiscal policies helped arrest the decline and are supporting a national economic recovery. in

. >> representative barney frank of massachusetts. >> thank you. want to challenge the premise of the general approach is how do you avoid being some parochial politician who distorts good to the credit policy because of your constituents? and i think in fact in a number of important issues with mr. to trade the constituents were right in the technocrats were wrong. there's a great british political philosophy and the theory of democracy was one of the arguments for democracy was only the people who knew issues with a pinched in trade many of us, and i know this is true for we won of south carolina we've been begging the financial establishment and political establishment, begging them for years please do something to alleviate the distress caused by trade. we were told no trade win-win, trade makes everybody better off and it is often between countries but decisions are made within countries and there was a refusal to acknowledge the pain being inflicted on some but there were two effects of trade and overall gain and changing the distribution and

they gave the authorities and we were in deep doo-doo and as barney frank said it's hard to get credit for presenting -- preventing a disaster that people never saw or could see. >> did you get down on your knees to plead with nancy pelosi? >> i did. but you have to understand that i was in a cabinet room witnessing when both senator mccain and senator obama were there in the middle of the campaign with a congressional leader we're not only did we not come to get there but it broke out people didn't come to the physical blows but they were verbally and it was chaos, and then the democrats assembled in the roosevelt room, and i went in uninvited and i did it just to break the tension and get a smile or laughter and they didn't really have it's decided affect. [laughter] because i remember as i recount in the book, i said please don't go out and blow this thing up and the speaker said to me we are not the ones pulling it up and she was right. >> you've got a great investment background and you've seen the government operate here abroad. nobody has had a better perch from which to view th

major differences i'd had with the white house staff was not wanting me to start negotiating with barney franknd fashion some compromise in 2006. because i just... i looked... i was really per flexed at these big agencies, fanny and freddie and all the risks and thought it would be better to get half a loaf rather than the whole loaf. but, again, we couldn't get those authorities until they were ready to melt down. and in twalgt. and so what i learned in washington... and then again we when all through the credit crisis we were working with the fed to develop plans to buy illiquid assets and i had mortgage securities and i have a little section in the book on that. but, again, we knew we couldn't have got the authority from congress. and so my basic message is that... and it's not to make an excuse, it's just... i think it's worth people understanding that the way washington works that if it' big and difficult and politically unattractive and particularly if it's an election year, is going to take a crisis to get the authorities. >> rose: if morgan and goldman had gone down, it would have been

they gave the authorities and we were in deep doo-doo and as barney frank said it's hard to get credit for preventing a disaster people never saw or could see. >> did you get on your knees to plead with nancy pelosi? >> i did. [laughter] but you have to understand why was in the cabinet room witnessing when both senator mccain and senator obama were there in the middle of the campaign where the congressional leaders were not only did we not come together the the people didn't come to the physical blows but they were verbal and it was chaos and then the democrats assembled in the roosevelt room, and i went in uninvited and i did it to try to break the attention or get a smile or laughter and it didn't of its desired effect because i remember as i recount in the book i said please don't go out and blow this thing up. the speaker said to me we are not the ones pulling it up and she was right. >> you have a great investment background and have seen how the government operate here just a broad. nobody has had a better perch from which to view the economy and make judgments about the economy

and as barney frank, it's very hard to get credit for presenting, preventing a disaster that people never saw or could see. >> did you get down on your knees and plead to nancy pelosi? >> i did. but you have to understand that i was in a cabinet real witnessing when both, you know, senator mccain and senator obama were there in the middle of the campaign with the congressional leaders, where not only do we not come together, it broke out, people didn't come to physical blows, but they were verbal blows and it was chaos. and the democrats assembled in the roosevelt room, and i -- i went in uninvited, and i just -- i did it just to try to break the, unit, the tension and to get a smile or laughter. and it didn't really have its desired effect. [laughter] >> because i remember ed as i recount in the book, i said, unit, please don't go out and blow this thing up. and the speaker said to me, we are not the ones that are blowing it up. and she was right. >> hank, you have got a great investment background that you've seen help governments operate here, a broad. in the, nobody has had a better p

and i, barney frank, one of my colleagues from the other side of the aisle, you know, we fought this issue and he came at it from a very different standpoint than where i did. from the right and the left, but we came together because we both saw the inherent problems with this bill and we had an amendment that we were hoping and if the n.e.a., if the national education association, had joined with us and supported it, i think we would have passed our amendment and we would have a very different no child left behind framework than what we have today. but they were kind of neutral. they didn't take a position. which also tells something to our constituents. if you're not involved in the process, someone else will decide the future for you. what the n.e.a. found out is that they didn't participate actively in fighting this bill and now one of the -- i just talked to a group of students, i think it was monday morning, ormond, they were at one of the lunches, so there were 18 students there, they were there with their teacher, they were advanced placement -- a.p. students out of scho

chuck shumer and barney frank will have voter registration. take well fair recipients you have, take all unemployed. it is a total myth. there is no such bill. there wasn't in november. then the right-wing echo chamber picks it up. "the washington times" says shumer and frank have plans to ram through legislation that will produce universal voter registration. and they say it will be on the floor of the house in two weeks. it's the lie repeated. glenn beck joined in. rush limbaugh joined in. this begins with a totally fictional accusation by john fund with no basis whatsoever. it is then repeated by glenn beck and repeated by "the washington times" and repeated by rush limbaugh none of them checked what we were talking about, none of them seeing if it was accurate. i was asked by a constituent why i had done that. my response was, done what? i didn't do it. so i checked into it and found that the source was mr. fund's totally irresponsible myth in november. so i wrote to mr. fund and i will put this letter in there and said i was puzzled to ha

are wondering what a new feminist black man looks like, think of a crossover between rupaul and barney frankeet agitator turned presidential candidate could save mankind, renew our faith in american politics, stop glaciers from melting, curve racism, and all wars, tackle terrorism, provide health care, pay for college tuition and while he's at it, he promised to send a government in a corn dog from the sky to flies off to the world for people dance across the street of eating fda- approved candy canes and where ms nbc is program on every channel. [applause] i want to fill you in on the name i have coined for those individuals who put barack obama on a pedestal. i call them obama zombies. that's right. it is actually the title of my forthcoming book set to be released by simon and schuster on march 30th. it's not just an argument against liberalism, but we are creating a movement designed to capture and educate freedom loving young people everywhere. [applause] i have had the opportunity to be a tv correspondent for michelle malkin's web site, hot air.com. as such, i have been able to. many l

made it into congressman barney frank's imagination on "snl." >> are you worried about a filibuster, about to filli-bust out of these jean shorts. >> reporter: and he has put his image to music. ♪ i believe in miracles you sexy thing sent in. >> what's next, a nude action figure of the guy? well, actually, yes. herobuilders.com has rushed out the anatomically correct cosmo man. the real scott brown will be able to hear with $34.95, it comes with fig leaf included and the website arlesque found an uncanny resemblance between the senator-elect and a come-hither kangaroo. jeanne moos, cnn. >> oh, boy. >> welcome to the senate. there you go. >>> coming up on 2 1/2 minutes to the top of the hour. top stories will be along in just about 90 seconds. living with foot pain? get gold bond pain relieving foot cream. maximum strength medicine stops pain fast. gold bond pain relieving foot cream. finally, fast relief for painful feet. >>> don't ask, don't tell. the president pledged to dismant dismantle it, but lifting the ban on openly gay soldiers in the military could be very costly, not to me

barney frank reported a 1100 financial reform bill that is his version. chris dodd is trying to push his uphill. that has to be merged so we're waiting to see what the rules are. >> and they only have 59 votes now, too. so anything that gets done, you don't know whether it's going to go through, anyway. now chris dodd is -- this is what i guess would happen with term limits. people would maybe vote their conscious. he doesn't care about re-election, so he's saying what he actually feels, which is a whole new concept for those guys, right? >> you're right, joe. it's good and it's bad. it's good that he can let his feelings show, but everybody knows he's in duck. if they can wait out chris dodd, they can wait out and see what happens next. he has to be pushing it uphill there. i think the white house is behind him. but here in the markets, we're waiting to see what happens and i think that we're stuck with interest rate policy. we're not sure what the fed is going to be in and out of the market. and here is your answer. we're going to find out what happens

i am very thankful to barney frank and others who helped us going forward.n we do looking forwar? i think the idea that the imf has changed -- again, not changing its overriding goals and not changing in terms of what we need to do. but it has adapted to the new reality of the 21st century. it needs to be conveyed. it is not that obvious. you know this because, being here, you are interested in these questions. it is not obvious for not even the man on the street but even highly educated people like u.s. congressman. so you can do that. another thing is to push the idea that i tried to underline in my conclusion, which is to push the idea of multilateralism. it is sad to say that multilateralism is not the most popular idea in the u.s. congress. Ñihelping -- explaining why it s in the interest of the u.s., not only in the interest of the world. the leading economy that the u.s. is has to be concerned by the global economy. the united states itself must provide this kind of multilateral money -- i think this is very helpful. let me give you an example that pr

they gave us the authorities and we were in deep trouble and barney frank said it is hard to get credit for preventing a disaster that the people never saw or could see. >> host: did you really get on your knees to plead with nancy pelosi? >> guest: i did. but understand i was in a cabinet room witnessing when both senator mccain and senators obama were there in the middle of the campaign were the congressional leaders are not only did not come together, it was chaos although it was verbal blows. but then could democrats assembled in the roosevelt room. i went in and uninvited and i did it just to try to break the tension and tried to get us smile or laugh tour. it did it not really having its desired effect. [laughter] because i remember as i recounted in the book, i said please don't go out and blow this thing up. and the speaker said we're not blowing it up. she was right. >> host: you have a great investment background, seeing government here and abroad, there may be a perch which to view the economy and make judgments about the economy going forward. azide understand it, you have y

in the house, barney frank, mike capuano and others have been looking at that and that's a possibilityeaningful structure to accomplish that purpose. that will be included if we can work something out if that makes sense going forward. again, i want to thank the members of the task force. thank senator schumer. it's important that we move expeditiously. the supreme court decision will begin to open those floodgates of special corporate money and it's not in the interest of the american people and we need to act quickly. >> what provisions would apply to unions as well -- >> every provision will apply to unions. every single one. and to 501c3's and we don't want corporations to hide behind them. >> can you talk about the option of approval. >> that's one of the difficult issues and because in both our bodies, the banking committee has jurisdiction over the hair sholder issues. we're working with our colleagues there to see what we can come up with. yes? [inaudible question] >> we believe we will get republican support here because it's hard for me to see why american people would allow

anecdotes and >> at this housing on executive compensation and the financial industry, chairman barney frank said the committee would look into a polishing government-backed lenders, fannie mae and freddie mac, quote, and their present form. this is two hours and 15 minutes. >> the hearing will come to order, and we have 10 minutes on each side, it being a day with not many members here. we can get right to the questions and have significant that everyone will be able to ask questions at least. and i will say that on did we fifth we're going to have a joint hearing with the committee on small business on the question of why more money isn't being lent and we're picking fit with it because we have a joint hearing which means that 100 members of the house will be the operative body. so this will be one day when, if members come to us and say i can't make it, we will not be totally unhappy, but we did feel that this is something where the small business committee has a very real interest in this as well. we have chairman and ranking member of small business committee on this committee, so we wi

seems to have disappeared somewhere and now we have chris dodd and senator dodd and representative barney frank going with this idea from president obama to create this systemic risk regulator. dodd's books berzon said just the other day, we need a system that predicts and prevents future crises. that is an impossible goal. old they can do is protect against the effects of future crises. >> okay. the house rules are keep it in the form of a question, tell us a.u. are and wait for the microphone and i will start with the gentleman on the far right there. wait for the microphone. >> thank you. my name is roger mode. i would like to ask about three specific remedies to see if you or for any of them, bringing back glass-steagall, breaking up the big banks and imposing leverage requirements. >> okay, i will do the first to first roger because those two go together. imposing leverage requirements and breaking up the big banks. another part of one of these bills coming out of congress is an amendment to allow regulators to identify too big to fail financial institutions and force them to break up. but

they gave the authorities and we were in deep doo-doo and as barney frank said it's hard to get credit for preventing a disaster people never saw or could see. >> did you get on your knees to plead with nancy pelosi? >> i did. [laughter] but you have to understand why was in the cabinet room witnessing when both senator mccain and senator obama were there in the middle of the campaign where the congressional leaders were not only did we not come together the the people didn't come to the physical blows but they were verbal and it was chaos and then the democrats assembled in the roosevelt room, and i went in uninvited and i did it to try to break the attention or get a smile or laughter and it didn't of its desired effect because i remember as i recount in the book i said please don't go out and blow this thing up. the speaker said to me we are not the ones pulling it up and she was right. >> you have a great investment background and have seen how the government operate here just a broad. nobody has had a better perch from which to view the economy and make judgments about the economy

it's a bill sponsored by barney frank of massachusetts -- >> is this the comprehensive law that passed in the timber? yes i support that. >> and do you support the full volcker rule? >> the president proposed working with the bill that passed the house including provision mr. kanjorski offered to give the government the ability to lead risk-taking by banks that we make sure those translated to the limits that will actually prevent risk-taking in the future. >> so it is consistent with h.r. 4173? >> absolutely. it's important for people to understand this bill -- >> i understand it include a provision that would give the government the ability to limit risk taking any way to prevent future occurrences. >> wasn't your legislative staff that worked to change the kanjorski amendment? >> again we work closely with members of that committee on a range of those provisions to make sure they met the intent -- >> you're not answering my question. spent on that amendment we absolutely worked with them -- >> limit in terms of its reach. >> we worked on the limits to make sure -- >> okay. so in ess

barney frank, mike capuano and others have been looking at that. a possibility down the road, if they can devise meaningful structure to accomplish that purpose. that will be included, if they can work something out. we all think it makes sense going forward. again, i want to thank the members of the task force. it is important that we moved expeditiously. the supreme court decision will open the floodgates and it is not in the interest of the american people. we need to act quickly. >> what do these provisions look like to unions as well? >> every provision would apply to unions. every single one. and to 501c3's and 527's. we do not want a corporation to hide by funneling money into one of these. >> what about the option of shareholder approval? is there a way of doing that by competing membership? >> it is a difficult issue. in both of our bodies, the banking committee has jurisdiction over shareholder issues. we're working with our colleagues there to see what we can come up with. >> any republican support? >> we believe we will get some republi

in the house, bernie frank and others have been looking at that -- barney frank and others have been looking at that. and so, that will be included if they can work out something that we all think makes sense going forward. again, i want to thank the members of the task force, think senator schumer and it is important that we move expeditiously. the supreme court decision will begin to open those floodgates and big of special interest money into the elections. we need to act quickly. >> thank you, chris. we are ready for your questions. >> which of these would apply to unions as well? >> every provision would apply to unions. every single one. and soon 501c3's, c4 's -- 501c4's and 527's. >> you talked about shareholder approval. can you apply that to union membership? >> that is a difficult issue. in both our bodies, the banking committee has the jurisdiction over shareholder issues. we will work with our colleagues there to see what we can come up with. >> any republican support? >> we believe we will get some republican support here. it is very hard for me to see how people would

seems to have disappeared somewhere, and now we have chris dodd, senator dodd and representative barney frankgoing with this idea from president obama to create this systemic risk regulators. chris dodd's spokesperson said just the other day we need a system that predicts and prevents future crises. that is an impossible goal. all they can do is protect against the effect of the future crises. >> okay. the house rules are keep it short in the form of a question. tell us who you are and wait for the microphone. i will start with the gentleman on the@@@@ rbrb@ @ @ @ @ @ @ @ á these things. if we credibly and too big to fail by protecting the economy from failure, leverage -- and if we put consistent borrowing limits across financial instruments and financial institutions matter what they call themselves, the lead rich will take care of itself through these reasonable regulations and through the market forces because lenders will know they no longer have an implicit government guarantee. they will care more what they are doing with their money. the same thing with too big to fail financial insti

the house financial services committee is chaired by barney frank .s is a one-hour portion. >> chairman frank, ranking mechanic baucus, thank you for the opportunity to testify on this important subject. our principle is to attract and obtain the executive leadership needed to ensure the ongoing function of the secondary mortgage market while minimizing taxpayer losses. at the inception, the incumbent c.e.o.s were replaced and received no severance payment because most of their compensation has been in the form of stocks and roughly 2/3 of their pay during their ten. ultimately, five of the six highest paid fannie mae executives and the top four freddie mac left but known of them received severance or other golden parachute pames. i would like to add that many of the more 11,000 enterprising employees earned portion of their payments in stock and suffered accordingly. in developing a new compensation structure for senior executives, f.h.a. consulted with mr. feinberg on how to adapt the approach he was targeting. in making that adaptation, a major con