passage ofafter the dodd frank, no such person exists. president obama has been unwilling or unable to follow the law and appoint a vice chair. we can no longer wait for the president to do his job so that we can be allowed to do ours. thus, chair yellen appears before us today in substitution. dodd frank rewarded the federal reserve with the vast, new, sweeping regulatory powers despite its contributions to the last financial what is clear is despite the largest monetary stimulus in our nation's history, middle income are not getting ahead and the poor and middle class are falling farther behind. the gdp is coming in at 1.5%. every man, woman, and child is thousands of dollars poorer than they should be. millions could be fully employed, who are not. millions of dollars of capital remain sidelined, due to a regulatory tsunami, much of it dictated by dodd frank. serious questions must be asked. why isn't the fed subject to costs? to findhe fed yet any connections in the drop of bond market liquidity? why do regulators punish banks for fai

just because a provision was in dodd-frank doesn't link it with another provision of dodd-frank or delink it from other provisions of laws that were passed earlier or later. so i would hope in carrying out your responsibilities, you would look functionally since the purpose is to give us advice how to improve derivatives regulation, how to improve a depository institution regulation, and leave it to the politicians to second-guess bills named for politicians. we do get one benefit from the fact that the vice chair for supervision has yet to take office, and that is that we get to spend another day with you. this is a great personal. >>> as i argued back in the summer, god's plan is not for things to rise in the autumn. in fact, that's why we call it fall. nor is it god's plan for things to rise in the winter through the snow. god's plan is that things rise in the spring, so if you want to be good with the almighty, you might want to delay until may. and i know there are a bunch of things you're aware of. many economists say we shouldn't move forward now, managing director of the imf has b

in 2010 he warned that the dodd- frank law would backfire... but he says he was up against a powerful lobby. >> imagine that you have angelina jolie at your door. you are a very big u.s. company, george clooney at your door saying you guys, you're the ones fueling the armed groups there. do you think that for the reputation of those companies they would be still sourcing from this region? they said ok we are stopping and that's what happened. >> soon after the law passed, companies took their business elsewhere. sales of tin ore from this province plummeted by more than 90%. >> ah the containers. >> that's the material ready to be exported. we are doing almost 2 containers while we used to do 8 containers per month. >> the only way john, or anyone in congo -- can now legally export to the u.s. is by opting into a system that traces the origin of the minerals. >> yes i can show you some. these are the tags. >> so these tags are attached to the bags of minerals that come here? >> yes. >> at mines that are determined to be "conflict free" bags of

the living will provision in dodd-frank was important to many of us.we think it's a way to void, too big to fail. we think it's a way for the institutions to say, don't worry, we can take care of ourselves, we don't need help. when they are all called not credible, it's a problem. you are in the process now. do you have any idea what the time frame might be when you are into the second chance? >> so, last year the board working jointly with the fdic sent very detailed evaluations of the living wills to the firms and directed the firms to take action to improve their resolvability that were quite specific and quite detailed. >> time frame? >> we have received those plans. we are evaluating them jointly with the fdic and we will be making decisions in the coming months. >> time of the gentleman has expired. the chair recognizes the gentleman from michigan. chairman of monetary policy sub committee. >> thank you, mr. chairman. i'm happy, chair yellen to rescue you from the hostile questioning of my democrat friend over there. don't take it personally, he'

you understand that dodd-frank gives it to you. you use it. you're welcome.stions from this committee about how you use it and how you can't use it. thank you very much. i yield back the balance of my time. >> the chair recognizes the gentleman from texas, chairman of the financial institution submsu subcommittee for five minutes. >> janet yellen answering questions. she was taking questions from the ranking member, that would be congresswoman maxine waters, and the chairman before that. questions about the stress test which the federal reserve does administer, mostly focused on banking. nothing about the economy yet, steve. a lot of talk about the stress tests, the opacity, the fed process, what it tells banks they can talk about. >> we are hearing two things reflecting republican frustrations with the federal reserve. this notion that they're not transparent. the chairman putting out a statement and reading from that statement that the fed is not transparent enough. it also reflects a complaint from the banks that the cecar stress test is not transparent en

. >> but what i would say that dodd/frank and that agreement we had internationally and there are two things and do the new capital rules under dodd/frank so the biggest things have to have more capital with a higher percentage of capital and lie there is subject to the fed oversight. >> supervision is tougher but on the of this side moving forward in a constructive way the ability to unwind but the main thing i would point out to is it is more costly to be big and what you see is companies talking about drinking per -- investing because the paper today made a discussion and then to avoid that extract capital. so that practical effect why there is a necessity but in the hands of the regulators to move us in the right direction. >> host: the pronouncements or the words of ben bernanke the give us save the low production that the fed is looking at the big banks if you cannot be unwound without the government infusion of the t.a.r.p. government infusion like palo was with lehman brothers you will have touche divest i'm not naskhi which bakes you think but which will precipitate but that

in the living will provision, in dodd frank as you know was pretty important to many of us. we think it is a way to avoid too big to fail. they're all called not credible, that's a problem. i know you're in the process now. do you have any idea what the time frame might be when you're nto the second chance? >> so last year working jointly sent very detailed evaluations the living wills to the firms. and directed the firms to take action to improve their resoveability that were quite specific. >> and quite detailed. we've received those plans. we're evaluating them jointly with the fdic. and we will be making decisions in the coming months. >> the time of the gentleman has expired. the chair now recognizes the gentleman from michigan,. >> thank you, mr. chairman. i am happy to rescue you from the hostile questioning my democrat friend over there. don't take it personally. he is that way with everybody. but i do actually want to kind of follow on on something that he had point of interest and frustration for a number of us speed g to do with the or lack thereof where there has

but it is not because of dodd-frank. banking regulators have really cracked down on them. the community banks are largely suffering because they cannot make a profit because interest rates are so low. why is it -- this is not a partisan questions of don't take it that way -- why is this such a bone for many members of the republican party? i spend a lot of time talking to wall street ceo's, and many of them come even though they didn't like dodd-frank when he was put in place, acknowledge it has made an initial system safer and some, he couldn't brian moynihan of bank of america, -- including brian moynihan of bank of america, saying they wouldn't change it. i think republicans are -- a, some of them are just opposed to what president obama wants to do. b, some of them are just opposed to regular flat out. erik: ideological matter. there are some things in dodd-frank that are overkill and if they would focus on those things and have a public debate on it, we would be better off. erik: there are things that are overkill t

most consolidation was leading up as a result of dodd frank. bloomberg miscalculated that those large banks have about 80 basis points advantage when they borrow money because with financial markets, if i read this right, they believe that they are too big to fail and so they are a a low risk to lend money too. that gives those big banks another reason to get bigger at the expense of smaller banks who can't compete as well.xt15÷ should we be concerned about that? are they too big to fail or too big to regulate or too big to jail? should we be concerned about their political power? >> absolutely. i think some parts of the study suggested they were too big to fail funding advantage had shrunk considerably. >> because of dodd frank? >> i would just say that dodd frank in the capital agreement that we had internationally is moving us in a good direction. there are two things i would say in general. one is that under the new capital rules, there are a lot of costs it imposed on the biggest banks and their pose because they are big. the biggest banks

the dodd/frank act reforms paved the way for solid and steady economic growth by restoring confidence in our markets. it's one of the pillars of reform, supporting the creating of 13 million private sector jobs for 67 consecutive months, extending the longest running growth streak in our history and reducing the unemployment rate to 5.1%, the lowest since 2008. my first question is as follows. you indicated in your testimony that the fed has tailored its regulatory and supervisory requirements for regional and community banks. however, i continue to hear from banks of all sizes in texas and in my congressional district that they're burdened by the regulation and the costly stress tests required. in fact, one regional bank of texas, one of their facilities is in houston spent $20 million in its stress tests alone. in your opinion, do our financial regulators currently have the discretion they need to correctly tailor regulatory and supervisory standards or should we in congress take action? >> congressman, my understanding is that stress tests are required of banks that are $5 billion

the living will provision in dodd-frank was important to many of us. we think it's a way to void, too big to fail. it allows the institutions to say don't worry, we can take care of ourselves, we don't need help. when they are all called not credible, it's a problem. you are in the process now. do you have any idea what the time frame might be when you are into the second chance? >> so, last year the board working jointly with the fdic sent very details evaluations of the living wills to the firms and directed the firms to take action to improve their resolvability that were quite specific and quite detailed. we have received those plans. we are evaluating them jointly with the fdic and we will be making decisions in the coming months. >> time of the gentleman has expired. the chair recognizes the gentleman from michigan. >> thank you, mr. chairman. i'm happy, chair yellen to rescue you from the hostile questioning of my democrat friend over there. don't take it personally, he's like that with everybody. but, i do actually want to kind of follow on on

>> i think the approach that we have currently that is in dodd frank is quite adequate. >> so you do have a concern with adding the district fed bank presidents? >> i might have some concern with that. >> what concern? >> this is, this has always been a board power to decide when to authorize particular reserve banks to engage in programs through the discount window emergency lending programs. >> but you understand there is a bipartisan concern. and bicameral concern. about how that has been used in the past. and that there is too big of a door open yet for these massive wall street bailouts to happen. and that what we are trying to address is, in addition to adequate collateral and insolvent borrower definitions, we're trying to make sure that there is not just a check and there is not just a rush to find a solution here, but that we also have the fed bank presidents this there. so. >> well, dodd frank clearly estrict it is way in which this power can be used and the rules that we finalize will address concerns about the definition of broad-based eligibility, insolvent borrowers and

>> that steady with that too big to fail funding advantage so what i would say is dodd/frank and that space agreement we had nationally but in general there is a lot of cost imposed so for example, the biggest banks have to have more capital the biggest firms are subject to a higher percentage of capital. and are subject to the tougher regulation and oversight from the fed. but ultimately to give the fed and the fdic the ability to unwind it the ability to be done so the main thing i would point out you're making it more costly and what you see in the news is companies with ge capital just today there was the discipline dash and the discussion that agee should break up to see that oversight but not on top of this we had their requirements and how they would be wound down to show how they could be simplified and why is it a necessity? and into the hands of regulators better intently focused on this problem to move in the right direction and over time. >> host: the pronouncements of ben bernanke don't move markets. but give us a little prediction that the fed looks at the big banks and

and here in congress, we must be mindful of attempts to defund dodd-frank. the american economy has made substantial concepts of the depths of crisis, but that progress will be threatened if we do not protect these reforms. i yield back the balance of my time. >> the chair now recognizes the gentleman from texas, chairman of the our financial institutions subcommittee forks two minutes. >> thank you, mr. chairman. good morning. today macks trks the first time someone has testified under the authorities imposed. yet today the person testifying was not appointed or confirmed to that position. i remain baffled that the president has failed to put forth a single name to serve in this important role. i fear it is largely because the federal reserve governor who serves as chairman of the internal committee on banking from vision can already exercise many of the authorities and de facto capacity free from meaningful checks and balances. the nerve in addition to its monetary policy operation regulates and supervises financial institutions many of them are some of th

dodd: the first call i got was from teddy. he paid attention to what was happening in people's lives and that personal touch. was lookingcause he for your vote tomorrow or there was some issue on the table but i guarantee because the senate is made of human beings -- you don't have some big overriding feeling about a question. if teddy kennedy approached you on a question, you probably heard in a moment of grief, he would listen to that phone call and take that message and everything else being equal, i think i will give him a vote. i can't tell you how valuable that is. when hetion allen got said about the reaction from a colleague who would go talk to someone on the other side -- it is important. teddy celebrated compromise. when was the last time anyone ran for public office and announce for their constituency that if you elect me, i'm a great compromise or? there wasn't a time if you ran for a legislative body, that skill set was critical to your success. denigrated the ability of people to work out differences. we celebra

dodd: i was not on the committee and the senate. and any issue dealing with it, teddy, he always did something, he understood the politics is more than an intellectual exercise. it is an emotional exercise. you need to understand that, even among your colleagues as you make your arguments. you have to understand they are human beings who are motivated probably as much by their personal experiences anything else. when i was authored the family and medical leave act, seven years, went through a couple of vetoes before president clinton signed into law in 1993. i was not getting very far. he said, you need to do something different on this. i think this is what he did with immigration. he said, there are a bunch of colleagues who served here who've had difficulties in their family lives. and they never lost the pay. they were never told they could not serve in the senate because they spent a week or a months necessary to be with a loved one during that crisis. don't mention a colleague by name, but talk about those senators that you kn

currently in the dodd-frank regulatory law. and another dealing with auto lending practices and the role of the consumer financial protection bureau. tomorrow, members will consider a bill on syrian refugee -- has and that bill is been introduced by representative richard hudson of north carolina. it would require refugees from syria and iraq to go through f.b.i. background checks for the -- from the homeland security department to guarantee they are not security threats. again, that on thursday in the house. this from "politico" today that house democrats plan to oppose that g.o.p. bill that would force the obama administration to adopt stricter requirements for refugees entering the u.s. from syria. republican leaders had hoped to get bipartisan support. members of democratic leadership, though, met today to discuss their strategies. sources said the opposition is unlikely to be unanimous, but that a majority of house democrats will likely oppose the legislation over concerns that it would damage the refugee program in the lo

a lot of attacks on dodd-frank. listen to that. >> imagine america without its community banks. that's what's happening because of dodd i-frank. >> you've codified too big to fail. we need to repeal dodd-frank as soon as possible. >> the banks get bigger and bigger under dodd-frank and community banks go out of business. >> i think what's interesting about dodd-frank is it's a great example of how socialism starts. 1590 communities have gone out of business, and on top of all that, we've created something called the consumer financial section bureau, a vast bureaucracy with no congressional oversight digs through hundreds of millions of your credit records to detect fraud. >> barney frank b, you have 30 seconds to respond. no, go ahead. >> they want to go back to the days when aig could run up $185 billion in credit default swap derivatives they couldn't pay off. they want to go back to where people were getting loans they shouldn't have gotten and lost their houses. they have this great hunger for the situation tha

"we put a lot of regulations in place now called dodd frank. and the problem with dodd frank is there are so many rules and regulations, you know what it is doing? it's killing the little bank. it's killing the bank in dubuque, so the bank in dubuque doesn't lend. it can't make money so they sell and the big banks get bigger." after leaving loras, kasich headed to mobile, alabama, for an event there. the new n-b-c / wall street journal republican national poll shows a new front runner among the ben carson is holding a six point lead over donald trump. carson came in with 29 percent to trump's 23 percent. this poll also has a four point nine percent

it if he were president. >> dodd-frank has become a bit of a symbol for regulation. david was asking a moment ago from commodities what we did on capital in 2010 wasn't explicitly called for by dodd-frank. we need to specify where the regulation needs to go. it and where it was just about right. >> erik shot a man is setting his sights on a new target, manipulation in the foreign exchange trading markets. his investigation looks at brokers who may be placing fake orders in a technique known as spoofing. first explain to us what current seeing -- what current see spoofing is. >> putting out a whole bunch of orders and canceling the orders in a strategy to move prices up or down in your favor. brokerss we have putting fake orders in illiquid currency. there is not a lot of trading. a year in those markets. upthose efforts to drum interests, they are putting fake orders allegedly. i'm interested in this trade and different things like that. it creates a false sense of demand. basically how active that market is. mount a could they defense that they are just trying to cr

living wills provision of dodd frank was created to make sure these banks never threaten the economy again by giving regulators additional power it is banks, living wills, are found to be not credible. the last time the fed and fdic evaluated the banks and living will, only the fdic took the official position that wills wither not credible. the fed's decision not to join the fdic has slowed both regulators' ability to take additional action. why would the fed voluntarily give up authorities to give up changes at problem banks? >> so we took the position that this was a depletely new process. and we stated this when we put out guidance on the living will process that we expected to have to work with firms for a few und rounds in order to understand what we needed to see in a plan and to give firms reasonable guidance on our expectations. last summer that is why we declined to join the fdic last summer and did not vote to find the plans noncredible. but if we're closely and jointly with the fdic over the last year to give very clear, very detailed, and we're asking for very substantial

that is what is happening because of dodd-frank, that is my worry, my worry is that real economy haseach of obama administration, and hillary clinton wants to double down on that, create more so, she is a captive of the left her party to the point now where she was for the trade agreement ins -- pacific agreement, now she against it. she was for the xl pipeline, now she is opposed. she is doubling down against it. moderator: you can't seriously guarantee there will not be there are financial crisis. >> you could if you are serious. moderator: never? >> i can't say that. but if you create a higher capital requirement that is the solution, not having construction of assets issue bigger banks have more and more control over the financial assets of this country what is the wrong approach to take. moderator: on that point, dr. carson. the major banks in u.s., many of them are bigger than ever. asset held by jpmorgan chase for example. having increased by 40%, over $2 .6 trillion, do you think swroarg swroarj.p. morgan and other big banks should be broken up. >> we should have policies tha

commodities are not required by dodd-frank as such.s been accomplished just by talking about regulation. the banks have pulled back or dispose some of their commodities operations. we want to be partly careful with commodities because a lot of the nonfinancial users of put commodity business comments in and said, make sure you do not stop them from doing things that are helpful to us . stephanie: since regulation is night and day from precrisis to today, there are many organizations that really do not want to become categorized. it that metlife is considered a systematically important financial institution and berkshire hathaway is not? daniel: i do not want to get into specifics, although i will a metlife because of stock has made a decision and it is on the public record. there i think the emphasis as always is on the characteristics when itirm, which could is in distressed mean problems for the entire financial system. been, the emphasis has with respect to metlife and credential and aig -- the extent of their business, whether deri

that is what is happening because of dodd-frank, that is my worry, my worry is that real economy hasvast overreach of obama administration, and hillary clinton wants to double down on that, create more so, she is a captive of the left her party to the point now where she was for the trade agreement ins -- pacific agreement, now she against it. she was for the xl pipeline, now she is opposed. she is doubling down against it. moderator: you can't seriously guarantee there will not be there are financial crisis. >> you could if you are serious. moderator: never? >> i can't say that. but if you create a higher capital requirement that is the solution, not having construction of assets issue bigger banks have more and more control over the financial assets of this country what is the wrong approach to take. moderator: on that point, dr. carson. the major banks in u.s., many of them are bigger than ever. asset held by jpmorgan chase for example. having increased by 40%, over $2 .6 trillion, do you think swroarg swroarj.p. morgan and other big banks should be broken up. >> we should have po

. >> you'll with to ask director dodd about that. >> director dodd (laughter) by i mean it is useful information yeah, he recognize you can go back if and do our magic with the adjustments given planned and demographics that's all interesting by once we have these data delayed is there a theme you're trying to get at in doing the project at the out set. >> the goal to look at how we compare to the other counties and included retirees when we do the 10 counties analysis which we set over mandated contributions to active physicals there are represented by retirees those are counties that are not anything like us so to compare to san francisco to la county is like commissioner vice president mar apples and pin apples similarly and i think neil can atte >> the school teachers have that i think our 10 county analysis is as inaccurate as this is to the intent was to kind of give us a per of were there similarities or not as you can see that there are a couple of places where we are off the charts but for the most part we're similar to the county that explicit sprees us we looked at the uti

dodd-frank does get the government involved in banking.ut that's not actually how socialism starts. socialism starts when you are your college roommate goes off to venezuala for the summer and comes back with a nose ring and some crazy but really interesting ideas. the next thing you know you are arguing with your dad at thanksgiving and your mom is crying so you take the dodge out just to clear your head. you wind up in the neighborhood of your first boyfriend. e september now it has been turned into a strip mall so you park out in front of a sporting goods store. listening to ted leo and smoking cloves thinking about what it all means. that is how socialism starts. (applause) i'm sorry, who is next? >> this country declared its independentance in 1776 and less than a hundred years it was the number one dmek power in the world. and-- economic power in the world. and the reason is because we had an atmosphere that encouraged entrepreneurial risk-taking and capital investment. >> now that is true, by 1872 the united states had the highest d

as we know, dodd-frank award the fed with wide sweeping powers. under dodd-frank, the fed can now functionally control virtually every major corner of the financial services sector of our economy. separate and apart from its traditional monetary policy authority. disturbingly the fed does so as part of a shadow regulatory system that is neither transparent nor accountable to the american people. simply put, the fed must not be allowed to shield its vast regulatory activities from the american people and congressional oversight by improperly cloaking them behind its traditional monetary policy independence. this is a vitally important point. what is clear is that despite the largest monetary stimulus in our nation's history, middle income families aren't getting ahead and the poor and working class are following further behind. preliminary third quarter gdp growth is coming in at an anemic 1.5%. our economy for seven years has limped along at about half the post war average. that means every man, woman and child is thousands of dollars poorer than

as you know, there are a lot of differences about the implementation of the dodd frank act. but that act was put into existence because of the crisis that we were confronting within this country that caused so many homes to be foreclosed on, communities to be devastated. people to lose their 401ks and we have to be careful about how we deal with modification, how we deal with changes in dodd frank and people should understand what they're doing because, they should be able to explain to their constituents why they voted to change dodd frank or to in any way modify what was done. whether i agree with it or not, all of the members should really know what's in those bills and that's why i oppose it. >> i yield back. >> thank you very much, does any other republican seek time? miss waters, you did ask and i will give you that ability to leave now as you choose. i want to thank you for taking time to be with us today. >> thank you, and i appreciate that. we have a mark-up going on in financial -- >> yes, ma'am, and i was aware of that. chairman told me about that, and i told him

hurt: considering dodd-frank is the law of the land at this time. is it appropriate for you as chair of the fed to press the president to fill this position? is it appropriate for you to do that? chair yellen: i think that we -- as i said, i think that we are carrying out our supervisory work in a very thorough and thoughtful fashion but would welcome nomination to the position. mr. hensarling: time of the gentleman has expired. the chair now recognizes the gentleman from texas, mr. green, ranking member of our oversight investigations subcommittee. mr. green: thank you, mr. chairman. thank you, madam chair, for your appearance today. madam chair, dr. king, m.l.k., reminded us that life is an inescapable network of mutuality tied to sangle garment of destiny. whatever impacts one impacts all indirectly. we found this to be imminently true with leighman and bear stearns. the failure of these megainstitutions had a die direct impact on us but indirectly they impacted the global economy, which is integrated to an extent that many of us can't even imagi

. >> there was a long exchange last night about the banks, and about dodd/frank. and a lot of folks trying to basically make an argument, two things. one saying, i would not -- ted cruz said i will not bail out the banks. hillary clinton said a similar thing. should voters believe a politician who looks them in the eyes during a campaign says, yeah, the too big to fail bank along the premise, i would not bail them out. >> first of all, they should ask these candidates what they really mean when they say -- none of them really seem to realize that every policy holder, i mean, every saver in the bank, if you have $100,000 in the bank, the fdic insures that money. i was surprised that governor bush who was supposed to have a policy nerd and great sophistication really couldn't answer that question nor could the others. that people are guaranteed their accounts up to $250,000. >> that is what the fdic does. >> and it used to be $100,000 until dodd/frank, another good thing that dodd/frank did that will help lower income people and middle upper income people in that si

. >> director dodd. >> i think the reason it keeps referring totions is because in 1937 person completely self-insured we paid our own claims and since city plan was born so we had to ply with any insurance standards now contract that administrative part out assume our vendors are complooilg. >> that's and helpful clarification. >> i'll follow-up to the an area i'm personally familiar with so the next - the next charter section a 423 again, this confirms the health services boards investment authority and the administrative expenses related to the fund investments can be paid from trust funds investment. >> i know your highlighting we know you're there it is informative to look at the other aspects of this particular charter precisions it talks about a lot of the things we make decisions dissixth amendment information a wellness program, supporting the cost of our actuary all the components we find we spends months and days on here if in chamber doing again go ahead. >> that's correct so outside of paying for premiums a question arises from time to time a certain expense out of trust fund

"we put a lot of regulations in place now called dodd frank. and the problem with dodd frank is there are so many rules and regulations, you know what it is doing? it's killing the little bank. it's killing the bank in dubuque, so the bank in dubuque doesn't lend. it can't make money so they sell and the big banks get bigger." after leaving loras, kasich headed to alabama, for an event there. hearing aids can give kids who are hard of hearing the chance to develop language skills at close to the same rate as their peers. a university of iowa study shows how vital properly fitted hearing aids are to young children. kcrg tv-9's forrest saunders joins us at the desk this morning. forrest, this was a first of a kind study? that's according to ui officials. researchers said there are very few studies out there on infants and preschoolers with mild to severe hearing loss. this study zeroed in on them and how hearing support can help. when 10 year old julianna mascardo was younger, her parents discovered she had hearing loss.her language development w

erik: here is the thing -- he does not think it needed to be in dodd-frank.roblem is that in many institutions, including merrill lynch, which he took over as ceo , it was not properly managed. we could debate endlessly as to whether it did or did not cause the financial crisis or play a role. he does not think it did. betty: he does not believe it should be in the role of regulators -- it should be in the role of regulators' hands. erik: right, exactly. it should be in the ceos'hands. .ohn thayne has some concerns as all encompassing as dodd-frank seems to be, with hundreds and hundreds of pages, there are things it does not do. i asked him what he sees as the biggest risk to the financial system today. here he is again. john: the financial system today is in much better shape. there is no question that banks are better capitalized and there is less leverage in the system. if you had to look today, the place that there is more risk is in the non-bank, the shadow banks. because the regulations have basically pushed the risk, the most risky things, out of the