the 2,300 page dodd-frank legislation created the consumer financial protection bureau. an incredibly powerful agency giving sweeping power to carry out its well intended but vaguely defined mission of consumer protection. like many other members of the financial service committee by of serious concerns with the cfpb. nonetheless it is low wall of the land. as members of congress we have a duty to ensure that this new agency is operating correctly and appropriately. the cfpb reached a milestone earlier this year when on july july 21st it stood up and officially acquired consumer protection rules and authority from seven other agencies. given the vast mandate and power of the cfpb, the decisions it makes will have an enormous impact on our nation's financial institutions and the consumers that they have served as well as our economy, and i look forward hearing from mr. date, and i thank madam chair for holding this important hearing and i yield back. 64. that concludes our opening statement so i would like to introduce the witness for the purpose of doing a five minute ope

these agencies are: the consumer financial protection bureau;; commoddty futures trading commission;fice of the comptroller of the currency; treaaury; and the securities & exchange commission. nearly 200 emplooees are paid salaries of $225,000 or more. this is more thannallowed by laa. in washington, laws are what the people follow. and not the politicians and bureaucrats. ffr more on ttis story visit behind the headlines dot net. facebook.w us twitter and [ man ] '53 corvette. i loved that car. [ man ] it's my new malibu. [ woman ] '57 bel air -- still have it. [ both ] our camaro. [ man ] chevy silverado -- third one. [ male announcer ] people love their chevys. that's because for 100 years, chevy has offered the best value in america. come in now and help us celebrate our centennial open house, november 1st through the 7th. and fall in love with your next chevy. ♪

protecting consumers when they borrow money. >> it's a new bureau working for you. you probably didn't know it. >> it's call the consumer financialrotection bureau. it's a mouthful. like the food and drug administration watches drugs or dangerous products, this mission is to make financial life safer for americans. it wants you to know before you owe. >> for the first time, there is an agency that is charged with looking out for consumers for making sure consumer finance markets work for american families. we would like the american public to hold us accountable. >> reporter: he serves as the special adviser for the consumer financial protection bureau. i's known as cfpb. it was established last year when president obama signed the dodd/frank wall street action into law. >> the idea is to know before you owe. >> reporter: since they opened for business in july, they launched the website, consumerfinance.gov. make financial decisions like student loans, mortgages, credit cards clearer to consumers. when there's a problem, a simple place to complain with the government's help. >> we don't have the time or inclination to understand

. >> reporter: the consumer financial protection bureau and the department of education are crafting a new way to show students how much they'll pay for college. it would list loans and scholarships separately and estimate a student's monthly loan payments after graduation. >> we need to make sure that people know what they're getting into before they sign up for mountains of debt. >> reporter: justin draeger advocates for financial aid administrators and says the draft is a good start. but, he says regulators should be careful about what disclosures they require of schools. he says his experience has shown that disclosing more information about financial aid could make a complicated process even more confusing. >> what we need to do now is focus in on the key elements of what should be disclosed to each student and parent as they try to decide what's the right institution for them. and then not inhibit schools from experimenting with innovative ways of delivering that information to students. >> reporter: catchot says if she had more information, she may have done things differently

the newly created consumer financial protection bureau announced an effort today to hear from the public on the private student loan market. s-l-m shares dove 4%, but was down much more during the session. the student lender is working with the consumer financial agency, and a spokesperson said it encourages students to at least make interest payments while in school instead of deferring payments. after the close, sales softre firm salesforce.com reported earnings three cents better than estimates before taking out compensation and other charges. it saw double-digit revenue increases in some of its key business segments. while sales lost 4% during the regular session, they were down another 6% after the close, thanks to its outlook coming in just below expectations. in the commodity market, the worries about europe did not help precious metals. gold fell 3%, silver dropped almost 7%. after hitting over $100 a barrel yesterday, oil fell more than 3.5%, and gasoline futures shed more than 4.5%. and that's tonight's "market focus." >> tom: our other big, exclusive interview tonight is with

that they're fed up with the practices dick durbin and jack reed of called on the consumer financial protection bureau to adopt a format that would disclose hidden fees in a consumer friendly format and a statement they say simply put consumers have had enough of banks to try to sneak fees past them that are hidden in fine print or imposed with no notice at all and we should also know that those who consider themselves good customers now they're getting screwed by the banks to banks are lowering the rates to get paid out to customers they keep the money in their accounts market rates inside a financial market research firm says the average interest rate for deposit accounts of fall into seven hundred four point seven four percent that's a decrease in the point eight percent they held earlier this year that might seem like a small pain for consumers but it turns out that's going to save the banks one point five billion dollars a month so just let this be a lesson to customers out there always read the fine print and might protect you from those hidden fees until the government might come up with anothe

and ranking democrat barney frank who helped author the original legislation. >> the consumer financial protection bureau, the cftc. today we are joined by mr. special lead advisor to the secretary of treasury for the consumer financial protection bureau. and i would like to welcome mr. dante to the first. for the committee in his capacity and also like to thank him for his willingness to participate. thank you. >> created by the dodd-frank act, the csb has officially been operational for a little over 100 days. however, absent the senate confirmation of the director of the cfpb doesn't have the full power. the focus this morning will give members of the subcommittee the opportunity to learn more about the operations in the bureau of the designated transfer date. these hearings are critical as the drafters and dodd-frank allowed for little oversight of the cfpb. as my colleagues know, the cfpb is funded through unique mechanisms that allow them to draw a percentage of the federal reserve operating expenses each year. they do have the ability to draw on the 200 million an additional federal appropriation

these agencies re: the consumer financial protection bureau; commodity futures trading commission; officetory viiit behind the headlines dot net. and folllw us twitter and facebook. i'm mark hyman. the best place for a vacation is mississippi. you mean louisiana. florida's where folk's want to be. alabama's got you all beat. no matter which state you choose, everyone agrees the gulf is vacation at it's best. mississippi outdoors, louisiana seafood, florida beaches, alabama shoreline. so come on down to mississippi, louisiana, florida, alabama. the gulf is the world's goodtime headquarters. and we are 100% open for business. as the rrvens put in the game plan for sunday night's showdown in pittsburgh, their defense knows it all comes doon to one thing on their side of the football...you have to stop the bii guy wearing number 7... 7... ben roethllsburgerrhas battled ray lewis and the ravens d many times...and for the most part, he's been successful...in fact, the opening day beat down was the first time big ben had lost to baltimore in the john harbaugh era..he's just so ig, and can make p

opportunity to speak with you today about the office of service member affairs at the consumer financial protection bureau or cfpb. as a lifetime military family member, i've seen firsthand the devastating impacts financial scams and predatory lending can have on our military families. i also spent six years as the head of the better business bureau's bbb military line program, and that was an education for me about the consumer issues and scams that impact the militariment unfortunately, there is still too many young troops learning financial lessons through hard experience and years of paying off expensive debt. in january 2011, i was asked to join the cfpb and head up the office of service member affairs. the job is to educate and empower service members to make better informed decisions regarding consumer financial products and services, to monitor their complaints about consumer financial products and services and the responses to those complaints, and to coordinate the efforts of federal and state agencies to improve consumer protection measures for military families. in support of our mission, we'v

she had the concept for a consumer financial protection bureau and this it incorporated in the dodd/frank they wouldn't let her have that job because she would be too good for it and that's why she's running for the senate, because the republicans blocked her and her candidacy is going to cost them a senate seat. >> i can tell you this, that young man after using that insult walked out of a door that was closed, as a former protester, check your exit and i also know it's jonathan capehart mother's birthday and i'm glad he shaved for the occasion. thank you both for your time. >> thanks, rev. >> there's more to herman cain's awkward interview. you won't believe what he said about collective bargaining. plus, the alleged penn state molester speaks out and more suspected victims come forward. we'll talk to someone who worked very closely with the coach next. uh, i'm in a timeout because apparently riding the dog like it's a small horse is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment

we need to confirm a director, the consumer financial protection bureau so they have the full power underm a mortgage modification program which tim applied for and thought he had been accepted into, absolutely one where there is a single point of contact to reduce confusion, make sure that there is not a dual track of foreclosure being pursued at the same time that the modification is being pursued. we need to have every single contract go through a third party review because so many mistakes have been made thousands of times over and certainly in this particular case, i encourage the bank to reach out and stand by their original proposal of lowered payments and consider that a modification and make this right for tim and his family. >> tim, let me make it clear for the american people that are watching. you are not asking for a favor here. you're not asking, despite the fact that aaron has served his country for charity, you just want to be able to pay at the modified price that they had told you that you could pay. am i right? >> that's correct. that's what a lot of us are. it's not ju

the 2300 page dodd-frank rhett legislation created the consumer financial protection bureau, an incredibly powerful agency given sweeping powers to carry out as well intended mission of consumer protection. like many other members of the financial services committee, i of serious concerns with the cfpb. nonetheless, it is the law of the land. as members of congress, we have a duty to ensure the new agency is operating correctly. the cfpb reach the milestone earlier this year when on july 21, it stood up and officially acquired consumer protection rules and authorities from seven other agencies. given the best mandate and power of the cfpb, the decision it makes it will have an enormous impact on our nation's financial institutions and the consumers they serve as well as our economy. and i look forward hearing from mr. date. and i thank madam chair for holding this important hearing. >> that concludes our opening statement. i would like to introduce our witness for the purpose of giving a five minute opening statement. mr. raj date, the special adviser for the consumer financial protection

consumer protection laws. this committee looked at so-called predatory lending, financial education, and how families are affected by the housing market. witnesses include holy petraeus, wife the cia director, david petraeus. she's with the consumer financial protection bureau. this is a little more than an hour and a half. >> good morning. good morning, and i'd like to call this hearing to order. earlier this week, it was reported ten executives was guzzled to receive bonuses totaling more than $12 million. given the current economic times and continued challenges in the housing market, i want to assure my colleagues that a call acting fa director to report to the committee as soon as possible. the details are still worked out, and my staff will be in touch with your staff. as a conservative of freddie mae -- approving proving the compensation and maintaining etiquette controls to oversee the day-to-day operations at fannie mae and freddy mack. this committee, congress, and taxpayers need to be confident that those controls are in place, and that the conservator has responsibilities. as we prepare to work home the last american troops from iraq later this year, it is important for us to understand the unique consumer financial challenges members of the mil

or one, the consumer financial protection bureau is taking them put on the financial aid shopping sohat that is one-way students one way students have an impact right now. if you look at it and say dismissing something right down the web site consumer finance.gov they are taking feedback so we would hope to have a final version of that the people could use in their everyday lives. i think beyond that, we have these lists of colleges that are increasing cost and looking for better ways to make sure students have that information. >> how about what's next within that price calculators? >> we are looking -- right now there's a requirement that every college that receives federal financial aid dollars have on their web site a net rice calculator so for those of you who may not be familiar with the lingo net price is the difference between your cost of attendance, your sticker price of a college, what is it go there -- my cost to go there minus the financial aid and scholarships. something discouraging is too often especially in middle and low income students they are scared away from her

>> the consumer financial protection bureau is taking in but on the financial aid shopping street -- is putting a financial aid shopping sheet. we would hope to have a final version of that that you can use in your everyday lives. beyond that, we have a list of colleges that are increasing cost and looking for better way to make sure that students have that information. >> what about the net price calculators? >> we are looking to -- there is a requirement that every college has on their website a net price. for those of you may not be familiar with the window -- lingo, it is the difference between the sticker price minus the average amount of financial aid and scholarships. they are scared away from expensive colleges because they see it cost $45,000. for me, it was free. thankfully, i was not deterred from applying. that is not true for everywhere. you have no idea what the difference really will be until you apply. >> [inaudible] >> we represent hundreds of thousands of low-income students and parents. what can we do to encourage institutions to share more information about gradua

across america is to make sure that richard corderi is appointed as the head of the consumer financial protection bureau. this, to me, is an agency which can continue this battle. on behalf of consumers. it is literally the only consumer protection agency in the federal government. now, many on the other side of the aisle don't like it. they don't believe in strong government oversight of these financial institutions on wall street. i disagree. i think americans deserve to be given the basic information about their financial transactions so that with that information they can make their own decisions. i'm not saying that government should steer them one way or another, but at least give us the basic information. let me decide the best bank for my family. let me decide the best credit card or debit card for me family or my business. that's all we can ask. finally, let moo say this: this established of a debit card fee limit is -- swipe fee limit is a breakthrough for many retailers. when i talk to retailers large and small, some of them chain stores and others just local stores, they were getting killed

allow the president to actually, you know, nominate and get confirmed the head of the consumer financial protection bureauthe president's re-election campaign is being fueled, the majority of it, by small donors. people are, quote, surprised by that. well, you shouldn't be surprised by that. people in this country understand that the president's values about responsibility, about accountability, about fairness, are the ones that really are the traditional american values we need to get back to in our economy. how we move forward together, you know, that we're all in this together. there isn't some small secret special group of people who somehow don't have to sacrifice as the rest of us do. i think that is a core difference in this campaign and one the american people are seeing. it's why the republicans are so scared of the occupy wall street sentiments. because it's given voice to this idea that there are these growing inequalities. heck, paul ryan made a speech about income inequality recently. what does that tell you? >> i'm glad you raised the issue of the re-election campaign. one thing that strikes

section 107 of the bill would lower the standards needed to veto bills from the consumer financial protection bureau. the cfpb was created to protect consumers. the fsoc veto was intended to avoid unintended risk. the standard imposed by the community first act would enable fsoc to veto rule-makings. safety and soundness means bank profitability. a bank that is not profitable is not safe and sound. that is axiomatic. there is no public policy in the level of bank profitability. it would elevate bank profitability over the protection of the american family. committed to banks and credit unions have become second-class citizens in the u.s. and enter regulation. they are important institutions that provide deluge to our financial system. the community first act is not the solution. it has seriously destructive provisions. it will not fix the problem of small banks being treated as second-class citizens. if you want to fix the problem, tackle the problem directly rather than approach it through a mist named bill that pokes banks ahead of communities. -- today -- through a misnamed bill that puts banks a

needs and mine that congress created the office of this service member first at the consumer financial protection bureaulitary and their families to make the best financial decisions for themselves. as importantly, once the cf bp has a direct or in place the agency be able to monitor non-bank financial institutions which are often at the heart of the military communities financial hardships. i would also like to welcome bonnie's been from my home state of south carolina. one he runs a rushmore consumer credit resource center. bonnie will explain some of the work she does and assistance to airmen and their families and to members of the national guard. admiral steve abbot, thank you very much for your service to our country and for being part of today's hearing. we look forward to your testimony and importance of financial readiness and the work of the navy marine corps release today. we are also trying by journal kevin bergner of u.s.a. e. and mr. frank pot from the panic in credit union. general gertner, thank you for your service to our country. both the u.s.a. and the pad federal credit union of mili

financial protections for people in the military. just this tuesday, i met with polly petraues in the consumer financial protection bureau. she and i share a common interest to make sure that men and women who protect the security of our country are themselves protected from predatory financial practices. i would also share a few thoughts about what each of you can do to give you cells -- to give yourself the best shot at a promising financial future. a few words about the federal reserve -- we're working hard both the central bankers and the financial regulators to help restore our nation's prosperity. in 2008 and early 2009, the world suffered the worst financial crisis since the great depression, a crisis which had been left unchecked, would have resulted in a global financial meltdown and economic collapse. working with policy makers around the world, the federal reserve acted creatively and forcefully to help stabilize the financial system and halt the economic slide. our economy has been growing and adding jobs for two years now. for many people, i know it does not feel like the recession never ended. the unemploymen

>> for one, the consumer financial protection bureau is taking it put on the financial aid system. you say we are missing something, right now on the website, they are taking feedback. we would hope to have a final version of that the people could use in their everyday lives. thinking beyond that, we have a list of their of colleges that are an increasing costs and looking but for better ways to have students get that information. >> how about next with a net price speculator? >> it is a requirement that we have a net price . net price is the difference between the cost of attendance, minus the average amount of financial aid and scholarship. too often among low income students they're scared away from more expensive colleges because they see the cost. my pal barter -- my alma mater 0.sts $45,000 p because harvard and yale has generous financial aid policies, you might apply. the net price helps students and families understand the port they apply how much the college will cost. we're looking for ways to pool that information and make it more acceptable so students can have one sto

the community first act would also reform the new consumer financial protection bureau so that the national credit union administration, the fdic, the federal reserve, and the other regulators would have a meaningful role in the creation of consumer protection rules. dodd-frank provides these regulators insufficient input and review of the cfpb and the results of poorly written regulations could mean less credit and, again, fewer jobs. there seems to be some disagreement here in washington, d.c., today about the effects of burdensome regulations on our economic recovery, but back in kansas, jay kennedy of the first national bank of frankfurt indicates that -- quote -- "our staff of 7.5 people are busy taking care of our customers and serving our communities. the extra burden from things like tracking escrow payments, sending privacy notices and filing call reports that take a month to complete all create undue stress and busy work for us. kansans know what that word busy work -- what those words busy work means. the relief of those three things alone would allow us to teach financial litera

for one, the consumer financial protection bureau is ticking and put on the financial shopping.that is one day it could have an impact right now. if you look at it if you might say it is missing something. they're taking feedback. we are hoping to have a final version that people could use in their everyday lives. i think beyond that, we have lists of their of colleges that are increasing cost and looking for better ways to make sure students of that information. >> how about what is next with the net price calculators? >> right now there is a requirement that every college that receives federal financial aid dollars have on their website a debt priced calculator. for those who may not be familiar with the lingo, net price is the difference between your cost of attendance of a college -- what does it say it costs to go there for years minus the average amount of financial aid and scholarship. something that is discouraging is too often low-income students are scared away a similar expensive colleges because of the cost. they began their bill cost $45,000 or not. -- maybe a vande

financial reform. this notion that the republicans are putting forward that the independent consumer bureau is a bad idea, that what we really need is a return to unregulated derivatives, those issues, consumer financial reform, consumer protection of financial reform, taking military spending from western europe and putting some in the deficit and some in the production of good things at home, and raising taxes on the very wealthy, i think that's a very winning combination. there's one final thing we have. you saw this in the referenda that occurred last election day. look, i think there are probably a lot of people in ohio who thought the unions had gone too far. when kasich put through this extreme bill to wipe them out altogether, he lost. there are people in mississippi who don't like abortion, but when they put through this extreme amendment about personhood, it lost. i think what we have to say to people is, yes, we understand there are problems, we regret the fact that we haven't been able to make more progress. but they're nuts. and i think that is so patentally obvious giving the republican circus. >> barney frank, congratulations on your retirement announcement. i hope we'll still see a lot of you particularly this ne

with protecting our servicemen and women from exploitation by businesses and other financial entities. we've taken some steps going forward with the creation of this new consumer protection bureau of an office of service members reetles relations, but e to do more and i hope we will. there are many amendments that address the national policies. better coordination between mental health care and community providers particularly for the members of the national guard and their families. they often don't have the opportunity to be close it a major military installation and so coordination with local community-based sproirs so critical to helping -- community-based providers is so critical to helping these members. let me highlight a few of the measures in the overall legislation that are very important. it authorizes a 1.6% across-the-board pay raise and authorizes pay raises. this is meeting the needs of our military personnel. it also authorizes the full funding of the ambush-protected veerks the mrap program, which provides for the procurement of mrap's and matv's to protect our troops on the ground. having returned about three weeks from afghanistan, these are critical weapon s