director dodd if you would please. >> catherine dodd. this item was presented at committee this morning and represents a base budget leading up to the mayor's requirements and no additions. we pulled out four area we're asking for additional funding for and not anticipated in your packet. it says what they are and we can go through them but i think the finish committee spent enough time and i think you're good. >> mr. chair just open this up to questions and we had a great deliberation not only with this board but the other board in the future. >> all right. are there questions from the board? >> i will repeat what i said and i would like to see paying for the governance committee and a consultant in the future and we had a lot of work to do this past year and don't want it to slide again for years. that's all i have. >> duly noted. all right. other board comments? this is an action item. >> item 10 is a discussion item. >> discussion item. public comment? hearing no public comment item 11. >> item 11 presentation of fiscal year 2015-16

director dodd. >> thank you. catherine dodd director. i just wanted to highlight a couple of things and this is again an example of your work and the work of our department. this annual report is an 18 month look at the accomplishments because we wanted to get on the calendar track with our strategic planning and planning here. again our increase in terms of the number of people that we provide services to. we increased year over year by 1167 lives in 2014 and i think that concept is like two large employers so as we increase there's -- think of adding large employers to our department. i think the info graphic on page five kind of summarizes how complex our activities are. i want to thank the communications manager for updating that in finance and all of the people that gave input. the idea of 72,000 calls, 21,000 in person member visits is pretty staggering. this was a year where we also had to implement the federal taxes, so the pe cory fee which is per employee per year, the transitional reassurance year and $63 per employee per year

i want to thank director dodd. she made some really good points about the anthem cyber attack earlier so i apologize if some of the information is redundant but i want to clarify a few points so anthem blue cross is a separate company from blue shield of california. they are currently conducting an investigation to determine the impact and scope of the incident. anthem has confirmed that blue plan members who access care through blue card may be impacted. we don't have any details about the level of exposure and it's a plan where members can access care outside of california and just a reminder blue shield of california offers a hmo plan to the city and county of san francisco members which means that care outside of the members assigned medical group is generally limited to emergency or urgent care services. and so the final point i want to make is that anthem has committed to providing detailed information of any blue shield member whose data was impacted by the breech and we will keep the board and also director

. >> catherine dodd would you speak to this. >> director dodd. you have the memo in the packet from me. this is pursuant to -- the memo is notification to the health service board that the health rates and benefits in 2016 is issuing rfp for vision services pursuant to the providers selection policy currently in place and the board must be notified of a black-out period when a rfp is released from the on set to conclusion of the plan with a primary provider and communication between board members and providers seeking contracts with hss solely related to hss contract suggest restricted and communication includes meetings and telephone. >> >> and email and text messages and letters and faxes and any other social media or contact with service providers pertaining to hss except during board or committee meetings. board members that communicate with service providers for reasons not related to hss agree to disclose in writing to the director and the board. >> this is not a new policy and it is my expectation that every board member will follow it, no

>> certainly not seeking in any way to alter dodd/frank at this time. it is -- >> let me ask the question -- >> framework that is -- >> do you think it's appropriate that mr. alvarez took public positions that do not evidently reflect the public position of the fed's board, especially before an audience that has a direct financial interest in how the fed enforces its rules? >> well, i think the fed's position and my position is that we are able to work very constructively within the framework of dodd/frank to tailor rules that are appropriate for the institutions we supervise and we're not seeking to change the law. >> i appreciate that. we know that the fed staff plays a critical role in shaping dodd/frank rules and enforcing them. in the case of the swaps pushout, congress passed the law in 2010, but the fed and the occ delayed the effective date of the rule until 2016. giving citigroup and other big banks time to get the rule repealed before it ever went into effect. did mr. alvarez provide input into the fed's decision to delay the effective date of

if you look at the dodd-frank legislation that has been through the process, the dodd-frank legislation was 848 pages long. the page count of the regulations required has mushroomed to more than 15,000 pages. over 15 million words of regulatory text. the fact that they are new in the implementation process is being completed, i do not think is a satisfactory response. chair yellen: we are holding public hearings and will be taking public comments. you mentioned community banks. we are focused on trying to find ways to reduce burdens on community banks. we will be sensitive to looking for ways in which we can reduce the burden of regulation. >> thank you. my time is up. i would encourage you to focus on the full intent of agrippa. >> the federal reserve has -- in many areas. it leads back to the new york federal reserve. several of us have had proposals . can you describe what you have done for greater accountability from the new york fed? >> in the aftermath of hearings held here and the allegations raised about the new york fed we have undertaken an internal review. the question we thi

is dodd-frank really working?one side of the debate is bill cohan who says it is fine that smaller banks are suffering and he hates dodd-frank. on the other side is dennis kelleher, the ceo of better markets. dennis, i was surprised by this. you hate the study? dennis: hate is a strong word. good morning to you and bill. it is misleading to say it is a harvard study. is a study by a former j.p. morgan chase executive that happens to be a consultant for a company in boston and did this paper through a harvard affiliated organization. harvard's claims association with it on the front page of the paper. i look at it and it reminds me of the book "how to lie with statistics." is more fiction than fact. it says that the crisis ended on march 1 of 2010 and everything that happened afterward is due to the dodd-frank law. it ignores the fact that the bill was not passed until july of 2010. almost none of the rules were finalized in 2011. today, less than half of the rules have been finalized and less than 40% of them have

>> dodd-frank does not do anything about underwriting standards. that is one of the puzzles about all of this. what it does is impose a lost restrictions on private sector, slowing economy. we've had slowest recovery from recession since the mid '60s. it hasn't cured the problem we set out with. government policy reducing underwriting standards causing a lot of people who can't sustain a mortgage, can't pay a mortgage to get homes of the we go into the same cycle again, have more failures and another crisis. david: you used to work for the treasury department. you're familiar with looking at accounts who has what, what kind

by the fed's enforcement of dodd frank. mr.ell it was written at 2:30 in the morning and so it needs to be, i think, revisited, just to make sense of it. he also criticized the new rules dodd frank put into place to address conflicts of interest saying quote restrictions on the agencies really did not work and it doesn't work and it's more constraining than i think is helpful. so let me start by asking, does mr. alvarez' criticism of these two rules reflect your view or the view of the federal board of governors? >> so, let me just say that over the years we've had feedback that we have given on various aspects of dodd frank. >> i appreciate -- the question i'm asking though is these are specific criticisms he has made of dodd frank rules. that goff v govern the largest financial institutions in this country and i'm just asking do his criticisms reflect your criticisms or the criticisms of the federal board? >> i think i personally and the board considered dodd frank to be a very important piece of legislation that has provided

. >> so in the process under consideration related to dodd/frank with the federal register notice and public comments that is an important part to design those rules considering in the appropriate way to design regulation to meet the dodd/frank objectives. for those agencies is something we go through very recently in the process for even those have not gone into effect. >> is it the same with the cfpb wheat it is news and we don't need to review the rules? >> we don't have that rulemaking authority. >> day understand vague argument. but that is not what it says and does not say let's review the rules and regulations that our old but let's review them all. that is why the law was passed. but that recently is through the process but the dodd/frank legislation in itself is 48 pages long but the page cavanaugh of the regulations required has mushroomed to more than 50,000 pages so far in the over 50 million self-regulatory text to say the fact they are new end day implementation process with that response to look at their regulations. >> we will be taken extensive public comments. sort t

i think dodd/frank is a little too large with there are portions of are tremendously important.ennedy: i and a stand that there are parts that are really good but the unintended consequences coming from over regulation it is hurting families and small businesses and that is the bottom-line. >> think about washington and unfortunately historically you have enormous pieces of legislation. kennedy: it is baked into the cake you cannot take it apart. >> they pay lawyers and lobbyists to go to a court's to fight for these regulations and it could have been solved and food gets hurt? because of the regulation because it is too much. please come back. kennedy: tell me what you think and you can sell off. agreeing energies kandel takes down a governor and we have details of a lot of the worst scandals a long time will say the best part of last night's special coming up next. of the "topical storm". know that chasing performance can mean lower returns and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know th

it is sort of an absolutely no changes to dodd-frank.r than the policy that has been talking about -- talked about by the ranking member or the former chair, or has been voted on by this committee to my friends across the aisle join me in voting unanimously for two of my bills that changed dodd-frank. when dealing with derivatives reform, a package the executive branch officially opposed because it sailed through this committee. you join us twice a year, but it is my understanding we hold near weekly lunches. last year, according to your public schedule from february to december alone, you held 51 meetings with the white house and 23 meetings with lawmakers. i do not know exactly who those were. vice chair. a meeting with me was not one of those 23, but that is 42 hours of your time meeting with that. that is three to one you are dealing with the executive ranch versus the legislative ranch. you are willing to share any of the items discussed, that would help with transparency and any of the agreements made during these. if not, i guess

the dodd-frank does in fact hurt smaller banks.ng horse for larger banks to have their regulations? jim: it also affects credit unions. it is having a chilling effect across the small financial institutions across the country. we have had 6000 pages of regulations with 36 different agencies, not just the cfd be issuing them under dodd-frank. says had a chilling effect in adding cost to the bottom line making it difficult to issue loans and serve that population. brendan: how do you rewrite dodd-frank to fix this problem? jim: it has become political. it is not just a stalking horse down the chain. it is one of the chain at if you change anything, it must be for big banks and must be political. betty: speaking about cost, the american action forum keynote this report. it says the seven rules have cost $12.5 billion,. they say where is the return? jim: that is great question. erik: maybe we have to live in a world of lower returns. [laughter] jim: it is a sad question. betty: what does that mean for the economy? erik: what is a bigge

strongly questioned by senators on whether dodd frank is too tough on banks. reducing lending. it's a prelude to possible changes that could come in the new republican-controlled senate this year. yellin likely faces an even tougher grile house with more support from conducting monetary policy according to rules dictated by congress and for bills to audit making a monetary policy. both ideas yellin strongly opposed today. for "nightly business report," i'm steve liesman. >> chief global economist at deutsche assets and wealth management. nice to have you back. >> nice to be here thanks. >> do you agree basically with the chairman's assessment of how the the economy is doing is doing? >> i think the economy is improving but it's not complete. they're lacking in the labor market although we've made a lot of progress in whittling it down particularly over the last year or so. >> are you in the camp josh that the fed will raise interest rates this year? >> i do. i think that it's not a sure thing and i think the real takeaway from the yellin testimony today is fle

>>> will you consider dodd-frank's plop sigss? >> given that the grippa process is looking at rules that are unnecessary, most of the rules have never been itch leapted yet or have taken the fact. soo it is not we feel, appropriate to look at those rules at this time. >> is it fru we won't have another study for 19 years? if we deent include dod frank? >> it's part of our normal practice. we looked at on an on going basis whether rules are appropriate in terms of still relevant. and we will make changes. >> thank you very much for being here. >> senator? >> thank you, mr. chairman. i think you're getting a theme here that this is not a partisan issue. this is not something that there's a lot of disagreement on this skmit tee about. we're deeply concerned about the status of community-base in this country. i look at this in kind of duodifferent ways. first you've got the obligation to make sure that your rules make sense. to make sure that you're doing the lookback and you're sensitive to some of the issues like appraisals. theseba

>> i am not speak -- not seeking in any way to alter dodd frank at this time. >> let me bring up the question differently. do you think it is appropriate that mr. alvarez mr. alvarez to public positions that do not evidently reflect the public position especially before an audience that has a direct a direct financial interest in how the fed enforces its rules? >> i think the fed's position in my position is that we are able to work very constructively within the framework of dodd frank to tailor rules that are appropriate to the institutions we supervise and are not seeking to change that. >> i appreciate that. you know, we know that the fed staff plays a a critical role in shaping dodd frank rules and enforcing them. in the case of the swaps push out, congress passed the law in 2010. the fed and the occ delay the effective date until 2016 giving and other big banks time to get the ball repealed before it ever went into effect. did mr. alvarez provide input into the fed decision to delay the effective date? >> i do not no. we usually have complicated rules that require adjustments b

parents should get good information relate dodd the vaccines i want parents do feel very comfortable with their decision to advantage sen nate their children. they should not have any doubts that it is the right then to do, and they should on dean the correct information. >> you have a new baby at home, this has to be a conversation with you and your wife and a physician, i am sure you are robustly discussing it. >> we are. it is the health of your child, you want do have him protected of course. should vaccines with mandatory. >> and lindsay is very blunt many of the claims that vaccines cause odism have been debunked but emily you might like this. factors sneddon considered. now we talk about cheese pockets. california is an exception because of what he says religious extremism, people dare lifestyles to bizarre levels in california, i might be offended by that, and even best educated and intelligent people can be stricken by moronic den conditionsies. wait until they get shingles too. you mention these pockets. why is it that we see in the bay area, and orange crone, in oregon the

you're covered taxi and limousine commission you vent heard what mike bloomberg said about dodd-frank was job killer. >> leaving city because of automation and growth in technology in the u.s. more diverse economy is good for us. this is will happen where cities get better and suburbs get worse. cheryl: 10% of the all the jobs added by wall street. this time around 1% to wall street. wall street is not contributing to new york city. >> that is a problem. wall street didn't just give you very high-paying jobs it gave awe lot of jobs. we're not talking about traders, back office people, support people. those people took the brunt of layoffs. took a lot of layoffs. if you're going to tell me that you know, people that make between 75 and $200,000 a year, that is kind of middle, right there, right or 75 and 150,000 that those people are doing better since dodd-frank and the fact that we have less of those jobs, that is a good thing, you're nuts. that is apology for dodd-frank and impact this had on this city particularly in those types of jobs. cheryl: thank you, "new york times." guys, t

that what folks in favor of dodd-frank caused financial crisis. say. >> they were told that it was failure to sufficiently regulate the financial system. but in fact it was government's housing policies caused financial crisis. if we followed that we wouldn't impose dodd-frank. we would have changes in the housing policies. david: but weren't there are a lot of irresponsible loans made out and received, both givers and receivers were involved in making some huge mistakes that, at least exacerbated the crisis, no? >> sure, except that what people don't know is that, in 2008, when we had the financial crisis, 3/4 of the bad mortgages that were outstandings, that was 31 million mortgages, were on the books of government agencies, which shows, who created the demand. david: brings it up-to-date now, the problem we have with our housing industry right now interest rates are so low a lot of banks don't want to be stuck for a 30-year mortgage, be it at three or 4%. and therefore, the people giving the mortgages are who? are the government entity, fannie,

governor since dodd-frank passed in 2010, the share of u.s.n doubled at a rate through the deficit crisis, do you agree with the conclusion of this report that dodd-frank is killing community banks? governor keating: well, at the time there was a feeling now i am a part of the american bankers association, that if you had a $10 billion cut off, anything less than that is a community bank, anything more than that is not. less than that, dodd-frank would not impact the cfbpb consumer financial protection bureau, well, the impact all of it because the prudential regulators and the cfpb basically every thing is put on the banks equally, so we have lost 2000 banks since the fall of 2008, 2000 community banks. i've got to say from sea to shining sea in small-town america, the community banks provide the small business loans, they provide the agricultural loans, they provide the loans for, if you will start up capitalists far more so than the larger institutions on a per capita basis, so that means those 2000 community banks are not in a position to

>> steve mentioned dodd-frank. we know that dodd-frank is squeezing main street squeezing small lenders. we know that main street is going to be pinched. wall street i'm not so worried about, they give to the left and right. the not to dirty secret is there will be bailouts no matter who is in the white house. we saw that with bush, we saw it with president obama and would under clinton as well. >> even democrats have come out with quotes about the way john padesta operates. he's not afraid to use power and ruthlessly if necessary. the guy is tough. >> let me tell you something hillary would be like bill clinton before the bond market and the republican congress pushed him towards the center. bill was far to the left his first two years and if you remember, david the economy was not doing very well those first two years. >> john, you get the impression that hillary had a very different background than her husband bill. she was influenced by the same folks in chicago, for example that influenced our current presiden

under title i of dodd/frank act the as you know robust living wills under title i of dodd/frank are crucial we are truly into too big to fail. many members of the public wrote to the fdic and the federal reserve expressing frustration that the public portions of living wills have been disappointing. specifically, the lack of public information makes it difficult for members of the public to assess the progress that firms and regulators have made on achieving the goals of dodd/frank, which is to reduce the complexity of the world's most significant financial institutions and allow them to be resolved under ordinary bankruptcy proceedings without endangering the broader economy. in an august 2014 press release, the fed noted that both they and the fdic will be working with large banks to explore ways to enhance public transparency of future planned submissions. i wonder if you can, to elaborate on this commitment. what additional information does the fed plan on releasing to the public so that we can know whether or not you are doing what we intended in wall street reform and each -- if each

the dodd-frank legislation was 1848 pages long. but the page count of the regulations required by dodd-frank has mushroomed to 15,000 pages so far and they aren't finished and over 15 million words of regulatory texan to say the fact they are new and the implementation process has recently been completed on them, i don't think is a satisfactory response to them and they need to look at the relations and get rid of those that are unnecessary or burdensome. >> we will be holding public hearings and taking extensive comments. you mentioned community banks. we are focused on trying to find ways to reduce the burdens on community banks and during this process will be very sensitive to looking for ways in which we can reduce the burden of regulation and will be reporting back to you. >> my time's up. i would encourage you and the other federal regulators to focus on the full intent of this and expand your review. thank you. >> senator reed. >> it has significant responsibilities in many areas, one is monetary policy. but one of the areas

. >> what's known as the dodd-frank act was introduced in the us after the 2007 financial crisis. its aims -- 1. to increase consumer protection. 2. enforce more transparency in securities trading. 3. work to establishing a monitoring system for the finance market. 4. demand increased control of major banks. 5. require banks to increase reserve funds. we ask michael kemmer, head of the german banking association, how the dodd act would affect european banks. you >> we still have certain differences between europe and the us. ironing out these differences and getting rid of them where possible would be very good because it would also limit access hurdles for the banks in the other country. >> but you'd prefer the european regulations. >> i am not a total fan of the us rules because they have certain aspects that don't really fit in with the way the present european banking system works. >> the banking associations seem to have exerted influence on the ttip negotiations. we find further documents. the british thecityuk banking association says the proposal by the eu commission is so

in dodd frank congress gave us the flexibility to tailor our supervisor supervision and regulation toe systemic importance and complexity in size of a bank and to the maximum extent possible within that legislation we have tried to use the powers that we have to appropriately tailor our supervisor supervisor supervision and regulation. for example, we recently proposed extra capital charges on the largest and most systemic institutions and higher leverage requirements and those requirements would not apply to the smaller institutions. but there are many other examples, as well. >> do you know of any community or regional bank that has caused systemic risk to our economy? >> there may have been episodes in which there were bank failures that had of smaller banks that did threaten systemic consequences, but certainly it's the largest -- >> i believe you chose your words carefully. you said may have been. do you know of any yourself and could you furnish any for the record where smaller banks, any of them are regional banks have caused systemic risks to our economy or to our banking syst

>> the primary focus hasn't been on dodd/frank and the egrpra process. >> i would imagine they don't hesitate to tell you about it? >> in a kinda sorta way, but the themes you touched on are the important ones in terms of the impact relevant to the institution. i think part of this discussion we had earlier i think was an important one. where it used to be traditional services in a defined market, it's really being stretched in terms of that definition when you overlay the competition, banks are really challenged by what is the right business model, and made sure that the rules and regs and our policies and practices mirror what those institutions are involved in. >> but i think our point is as they're trying to meet those challenges, whether it's technology and competing with online banking. >>> so i think one of the things that would be extraordinarily helpful for me is to take a look at what you've already done and then taking a look at where you are sympathetic to the concerns that community bank or smaller institutions have and what we need to do to pick those concerns. the viab

it has to do with dodd/frank.acks, but it also has to do i think, with the more improvisational monetary policy and, listen accountability and transparency on the one hand and independence in the context of monetary policy are not mutually exclusive concepts. all year asking is that the fed tell the reps of us in the economy what are the factors you will use to conduct monetary policy, how will you waive them and if you change your approach you need to communicate it to the rest of us. if you look at the period of great moderation, you can see where the fed used a more rules-based, predictable approach, and we had greater economic growth. i don't think that's a coincidence. i think there is some cause and effect to that as to many national and prominent economists today and that's what we believe the fed should do. dodd/frank has vastly expanded the powers of the fed. we're having a fed selectively intervene to prop up credit markets that it's never done before using tools that it's never used before. there also h

and now with all the overlay of dodd-frank, nobody clearly understands, and you have to spend all thiscompliance and regulations, try to get a competitive mortgage from a community bank. or consumer loan? it is impractical. no doubt that they're either going to be merging with bigger banks or just simply go out of business. david: such a shame. we knew it was going to happen by the way when they were preparing all these regulations. >>> all right, apple hitting an all-time high today but some are warning that the tech giant could start falling apart to go from great to just average. larry, what do you think? >> i mean it could. every company has a shelf life. i mean not every company being dupont. let's face it, apple is on a high perch. there is a lot of competitive pressure. they need to continue to innovate new products. they rely very heavily on that. there is also regulation risk. that's a big risk that we don't talk about. they also need to maintain key distributorship for their itunes. if they can do all of that, it is going to be a great company. otherwise they will fall off th

republicans want to take us back to the same failed policies of trickle down, including repealing dodd/frank. in their obsession with trickle down economics, republicans fail to see the connection between the purchasing power of the middle class and the success of america's economy. six years after the deepest recession of the great depression, the fruits on the economy are clear, 11.2 million new private sector jobs created in 58 months, the longest uninterrupted stretch of private sector growth in our history. we provided a lifeline to save the auto industry, and more than a million jobs, part of that. unemployment rate down from around 10% to 5.6%. deficit cut by two thirds, from $1.4 trillion to $483 billion this year. stock market has gone from under 7000 to over 17,000. we've seen reading scores go up high school graduation rates go up, more young people attending college than ever. 16 million previously uninsured americans now have affordable dependable health care, and we extended the life of the medicare trust fund by 13 years, to name a few accomplishments. however, even with

the dodd-frank legislation was 1848 pages long. but the page count of the regulations required by dodd-frank has mushroomed to 15,000 pages so far and they aren't finished and over 15 million words of regulatory texan to say the fact they are new and the implementation process has recently been completed on them, i don't think is a satisfactory response to them and they need to look at the relations and get rid of those that are unnecessary or burdensome. >> we will be holding public hearings and taking extensive comments. you mentioned community banks. we are focused on trying to find ways to reduce the burdens on community banks and during this process will be very sensitive to looking for ways in which we can reduce the burden of regulation and will be reporting back to you. >> my time's up. i would encourage you and the other federal regulators to focus on the full intent of this and expand your review. thank you. >> senator reed. >> it has significant responsibilities in many areas, one is monetary policy. but one of the areas

so that's been an ongoing issue and problem with dodd-frank.smaller firms, let's say 20 or 30 of them instead of five of them then they can innovate. if they do something wrong you can let them fail. that's a better model. you would lose some of the economy scale. but you'd be making a conscious choice to do that. >> but the chinese banks are -- >> chinese banks are not going to be innovative. >> and that's the answer? >> you can do a little syndicate or something. >> that's very true. >> really the rest of the world has these big institutions that are protected by governments. you're not going to see a lot of innovation. they're going to be static organizations. >> what you said about qe 4 -- >> which time? >> i -- >> i thought once we got to qe infinity -- >> but we said if we needed we would bring it back. that was in reference to what if things go south. saying these guys are never going to get out. someone asked you that question but saying theoretically if you needed it. >> that was basically what happened. you know that was -- that comme

to dodd/frank. they have the whole issue of transparency reporting back to the public on the numbers. diversity is very important to me for a whole host of reasons but can you briefly share with us what you're doing since you came under the recovery act of how you are being transparent and sharing the diversity? >> the statutory reporting requirements. we obviously are complying with those, but more importantly, what we've done is try to take a look at how to make the amwy office an important greenltingredient of our organization. not just keeping numbers but imbed them in decisions that are being made. and in the selections of our director of the amwe office we found somebody who had transactional background. not just amwe background, so that we could -- we could get that person involved in the kinds of decision-making that would have some impact on diversity. >> thank you. >> the gentle lady's time has expired. the chair now -- >> unanimous consent to enter into the record an article that ran in t

obamacare, dodd frank, this regulation or that regulation? no, it is the usurpation of power. it is the collapse of the separation of powers. it is the ending of the equilibrium. the equilibrium between congress and the presidency has been shifting, lifting the wrong direction for a long time. it is the collapse of the checks and balances. montesquieu wrote that when the executive begins to legislate, then a form of tyranny will ensue. there is a great danger. i tell people, it isn't just about how bad this president is. it is how bad the next one might be. never forget, the only thing good that came out of the kilo decision, or you can take people's property. you can take it for private use. the worst decision in supreme court history. there are a lot of bad ones. i go to the mayor of my town. it spawned these votes. in my town we are not going to do that. my mayor's answer was but i'm a good person. i would never take anyone's land. government is not about whether we are good or bad. madison said if government were comprised of angels we would not need these rules. frankly o

we think the tax code we have but ford is entirely consistent in the dodd frank act. it is designed to make it a little bit more expensive for firms to be highly leverage. i think they've you look at the overall tax proposal, by reducing the corporate tax rate, that will also have a benefit for financial institutions and other companies. if you look on balance, we treat financial institutions quite fairly. >> i would tell you that the seven business points that you increase it by may mitigate risk, but really passes on a greater burden to the consumer. that makes it even more difficult for small business owners tos. i would say that 20% rate would be a positive rate and put us in a position to be globally competitive. however, to get there, there is a 14% repatriation deemed rate. if you must know i guess you do not have to be home. you must know that there have to be a nonstarter on our side of the isle. it would be helpful to go back to the drawing board and look at how to make progress. >> similar to the proposal put forward by the house ways and means committee. w

>> senator we think the dodd/frank act is working very well. and has very much reduced the risk in the system. we think the tax proposal we put forward is entirely consistent with the dodd/frank act. it's designed to make it a bit more expensive for firms to be highly leveraged, and that is one of the factors that contributes to risk. i think that if you look at our overall tax proposals, by reducing the corporate tax rate that's going to also have a benefit for financial institutions and other companies. i think if you look on balance, we treat financial institutions quite fairly. >> i will tell you that the seven basis points that you increased it by may mitigate risk, but at the same time it really passes on a greater burden to the consumer, which makes it even more difficult for small business owners to borrow money. my time is running out. but looking at the proposal on the corporate tax restructuring, i would note a 28% rate would be a positive rate, and would put us in a position to be globally competitive. however, for us to get there,