cordray. i'll remain to take your questions. let everybody get out the door while i survey the field. clear my throat. and look to the associated press. >> can you confirm the drone strike in pakistan and comment on what the assassination would mean for the al qaeda organization and your fight against it, and secondly for u.s. relations with pakistan? >> i can tell you that our intelligence community has intelligence that leads them to believe that al qaeda's number two leader al libbi is dead. i can't get into details of how his death was brought about, but i can tell you that he served as arc did a's general manager responsible for overseeing the group's day-to-day operations in the tribal areas of pakistan, and he managed outreach to al qaeda's regional affiliates. his death is part of the degradation that's been taking place to core al qaeda during the past several years, and that degradation has depleted the ranks to such an extent that there is now no clear successor to take on the breadth of his responsibilities, and that

cordray. they'll be talking about college student aid transparency. then mr.acarney will continue with his briefing. in the meantime, waiting for this to start we'll bring awe portion of today's "wall street journal." our guest this morning, mark zandi, moody analytics, chief economist and talk answer calls for fed action after a weak jobs report issued by the labor department last week. >>> mark zandi, chief economist analytic, thanks for joining us from west k4e69or, pennsylvania. >> good morning. thanks to having me. >> calls for federal action after we all the saw the weak jobs report come out last week, but the fed's main purpose is monetary policy. how does that relate to job growth? >> well, the federal reserve play as very key role in terms of the broader economy, and job creation. it lowers interest rates in times of difficulty like the current period to make it easier tore people to borrow money. for businesses to borrow money, go out, invest and to hire. takes pressure off people who borrowed lots of money already, debtors, and brings down debt serv

cordray, i want to talk to you first. the housing credit market continues to be very tight, and i'm hearing a lot of concern about how dodd-frank will reduce credit availability through the proposed rules through qualified mortgage that increases liability and qualified residential mortgage that requires a 20% down payment. i know that last week the cfpb reopened the comment period for the qualified mortgage proposal until july 9th. seeking comments about data that can be used to model the relationship between the borrower's ability to repay and the consumer's ratio to debt -- of debt to income. is it your opinion to discuss this rule? >> so thank you, senator, for the question about the qualified mortgage ability to repay rule. one of the reasons we did reopen the comment period is that we have recently been able to obtain significant amount of data from fhfa that gives us a better window into the mortgage market. we're all, i think, quite concerned and i know all of you are as well about the direction and trajectory of

director cordray, please, proceed. >> chairman johnson, ranking member shelby, members of the committee, thank you for the opportunity to testify today as part of this panel of my colleagues. as director of the consumer financial protection bureau, i'm committed to being accountable to you and we're always happy to have the chance to discuss our work with you. this is the 18th time that the new bureau's testified before either the house or the senate, and i'm pleased to be here again today. my testimony will focus on the areas you specified in the letter inviting me to testify at this hearing. you asked about our bank supervision program. we've been focussed on recruiting and hiring the best team we could find to supervise financial institutions with our focus on consumer protection. we're blessed with great talent. the former commissioner of banks in massachusetts leads our bank supervision team. the former associate director at the ftc leads our non-bank supervision team. our examiners are working to ensure compliance with federal consumer financial law and may seek corrective actions

director cordray and the folks on his team have been amazing partners. i want to thank them. i would like to turn it over to talk about what they are doing to help parents, students, and consumers. >> thank you. higher education is a critical part of the american dream. it has been true in your lives. for many students, this can only be realized through borrowing. figure not have to pay for college can be daunting. it will affect a student for the rest of her life. for many families, the process is often complex and confusing. it is hard to evaluate financial aid options and figure out how much that they can afford. we have heard from thousands of borrowers who told us they did not understand what they were signing up for. many of them chose private loans before exhausting their federal loan options. some resorted to credit cards and other high-priced loan. all too often, borrowers got in over their heads. recently, we announced that outstanding student loan that has passed the one trillion dollars mark. the stakes have never been higher for families to clearly understand the

we will hear from head of the consumer financial protection bureau, richard cordray.ve coverage at 10 a.m. eastern on c-span3. on thursday, federal reserve chairman ben bernanke will talk about the u.s. economic outlook. .. in the 21st century it's unquestionable that how we manage our energy resources, what sort of economy we build, how efficiently we use them and a degree of dependence or independence from foreign oils forces -- sources will be a critical determinant of our flexibility, international policy and the health of our economy and in the long term the health the entire ecosystem. so these are crucial and essential issues, easy to be rolled i think by the fact that some of them feel like long-term issues. there's this temptation eyes to say well yes it's important but that is a can that can be kicked down the road. the road is not infinitely long in which we can kick the can and somewhere in the 21st century 21st century these issues will become crucial to both our country and the entire planet. and the earlier we forge intelligent policies that manage our

richard cordray. he ignored fast and furious requests. he's now subject to a contempt action.ld left behind act he issued waivers tr to states from their requirements that they meet math proficiency standards in exchange for following obama's guidelines. solyndra, you subject bored nateed tax d you subordinated taxpayer loan. $15 million it's estimate it cost the taxpayers. his administration pressure youd the board of directors at solyndra to delay layoffs. it cost the taxpayers $40 million extra. megyn: you have done this comprehensive list. is this so unusual? is it unusual for a president to use the power of the oval office to push through an agenda when he has a congress that he views as obstructionist? >> obama has taken it to a new level. it used to be that president's who didn't agree on the constitutionality of a law might be lax in enforcing it. but john yu wrote about how he did this on immigration for policy reasons. megyn: the immigration laws on the books require deportation. i want toes ask you. is this the kind of thing people may recognize the famous last name

the recess appointments of richard cordray as director of the consumer financial protection bureau andee members of the national labor board are almost certain to be struck down. the appointments made simply cannot be squared with the language of the constitution on recess appointments. the dodd-frank act, another obama administration initiative, gives the secretary of treasury the power to seize any financial firm, bank, hedge fund, insurance companies if he thinks it will fail and turn it over to the fdic for liquidation. if the company disagrees, the secretary can go to court. but the court has one day to make that decision. one day. if it does not decide in that time, the company is turned over for liquidation to the fdic by operation of the law. and the options are not allowed under the law. and it is a felony for anyone to disclose that the secretary asked for the court's order. all of these elements seem to violate the fifth amendment of taking property without due process and free-speech guarantee. senator mitch mcconnell, republican of kentucky, and senate minority leader. for

director cordray has an amazing part in the effort. thank you for their leadership now by two turnover to talk about what they are helping consumers and parents and students. >> higher education is the critical part of the american team. but many students it can only be realized through borrowing. paying for college is daunting. it is the first decision a student will make. unfortunately the process is complex and confusing. is hard to compare costs, a guy with financial aid and figure out how much debt they can afford. we have heard from thousands of borrowers that says they did not understand what they signed up for. they signed up for private loans before exhausting federal loan options. others were credit-card and they got in on their head. we announced outstanding student loan debt crossed $1 trillion per good has eclipse creditcards as a leading source of debt outside of mortgages. the stakes have never been higher to understand the cost and risk of dead and stove recover from the worst crisis since the great depression. it did h

director cordray and all the folks on his team have within just amazing partners in this effort and i want to thank them for their leadership and their commitment as we take on this critically important work and now i'd like to turn it over to talk about what cfpb is doing to help parent, students and consumers know before they go. >> thank you. higher education is a critical part of the american dream. as all of you know. i'm sure it's been true in your lives but for many students today this dream can only be realized through borrowing. figuring out how to pay for college can be daunting. it's often the first major financial decision that is aa student will make. one that will affect her for the rest of her life. unfortunately for many families the process is often complex and confusing. it's hard for students to compare college costs, evaluate financial aid options and figure out how much dead they can afford -- debt they can afford. we have heard from thousands of student loan borrowers who tell us that they simply didn't understand what they were signing up for. many of them chose

the recess appointments of richard cordray as director of the consumer financial protection bureau, andthree members of the national labor relations board are almost certain to be struck down. the appointments the president made in these cases simply cannot be squared with the language of the constitution on recess appointments. the dodd-frank act, another obama administration initiative, gives a sector of the treasury the power to seize any financial firms, bank, finance company, hedge funds, insurance company. if he thinks it will fail and turned over to the fbi for -- the fdic for liquidation. if the country disagrees the secretary can go to court and compel compliance by the court has one day to make that decision. one day. and if it doesn't decide in that time, the company is turned over for liquidation to the fdic by operation of law. stays and injunctions are not allowed under the law, and it's a felony for anyone to disclose that the secretary asked for courts order. all these elements seem to violate the fifth amendment's prohibition on taking property without due process, and