if you could have your experts at the federal reserve review our piece of legislation and the dodd bill any other bill that hopefully comes out of the senate and give us that critique, so that we may use that when we go to conference committee to address those loopholes? >> while we have been doing is to provide technical assistance on each issue, we do not want the overstep our bounds and say this is good and bad is bad. we would like to help wherever we can. >> on the part i am responsible for, do not worry about overstepping your bounds. mr. volcker, unfortunately we did not have the volcker rule before us when we went through the house i regulatory reform, but it is included in the dodd bill. i have this open question -- did the dodd bill include the entire volcker rule or important portions that may be left out that we should look at an address if we go to conference? and then, if you could for the record indicate why you think it is so important that we have mandatory provisions such as the volcker rule? >> the first part of your question -- is a big step forward. there may be a f

if you could have your experts at the federal reserve review our piece of legislation and the dodd bill and any other bill that hopefully comes out of the senate and give us that critique, so that we may use that when we go to conference committee to address those loopholes? >> while we have been doing is to provide technical assistance on each issue, we do not want the overstep our bounds and say this is good and bad is bad. we would like to help wherever we can. >> on the part i am responsible for, do not worry about overstepping your bounds. mr. volcker, unfortunately we did not have the volcker rule before us when we went through the house i regulatory reform, but it is included in the dodd bill. i have this open question -- did the dodd bill include the entire volcker rule or important portions that may be left out that we should look at an address if we go to conference? and then, if you could for the record indicate why you think it is so important that we have mandatory provisions such as the volcker rule? >> the first part of your question -- is a big step forward. there may be

now it is included in the dodd bill. i have this open question. , did that bill include the entire avoca ruvolcker rule? second, if you could for the record indicate why you think it is so important that we have minatomandatory provisions suchs the voelker rule? >> the chris dodd bill is a big step forward. there may be a few areas where additional clarification would be desirable. i am out of office, so i have no reluctance to overstate my ability with my comments. i think it has to be mandatory, because i have been a regulatory. i've been a supervisor. it is very hard to take tough restrictive measures before the crisis. and after the crisis it is too late. i think in an area like this, where the rationale is quite clear, the law should say as specifically and as mandatory as possible. i think the dodd bill goes considerably in that direction as in the stand it. >> very good. in view of the fact there are so many members, i yield back the rest of my time. >> the gentleman from texas, the ranking member of the subcommittee. >> thank you, mr. chair

last week the house approved a strong bill favoring a consumer protection agency, and senator dodd's proposal contains of euro located in the fed. chairman volcker, would you -- contains of euro located in the fed. chairman volcker, would you support this so each job could -- each party could do their job better? >> i think there is some overlap, because some of the consumer protection. i think they are distinctive enough that you can separate them. >> thank you. with respect to the banks, i am concerned it will turn the cents per three defense focus from smaller institutions and focus its only on the largest -- it will turn the said's attention away from some -- the fed's attention away@@@@@@@ @ @ @ @ @ >> we learn a lot about the economy. it keeps us in touch with the country as a whole, not just wall street and we hope to retain those connections. >> if the senate proposal became law, what would that mean for banks and our local economy back in kansas? >> the globe and give the oversight to the fdic -- the law would give oversight to the fdic. what it would do from our perspective

democratic senator chris dodd rolled out his financial reform bill. it called for a new consumer protection division under the federal reserve. but not as a separate agency. and house democratic leaders work to find the votes for passing health care reform this week. the newshour is always online. hari sreenivasan in our news room previews what's there . >> sreenivasan: on our web site, should the u.s. talk to terrorists? we get two different views from mark perry and lee smith, who both have new books about terrorism in the middle east. you can find those on our rundown news blog. also on the rundown, a conversation about the new f.c.c. plan to modernize the nation's broadband and wireless networks. finally, in our continuing series "the next chapter of reading," jeffrey brown talks to science writer james gleick, a member of the authors guild about author's rights in the age of google books. all that and more is on our web site, newshour.pbs.org. >> woodruff: and again, to our honor roll of american service personnel killed in the iraq and afghanist

consumer protections before the meltdown, they would not only have the power, but under the new dodd bill, they're looking to add power to the federal reserve, which was the seat of the cheap money giveaways to the banks that allowed the massive bubble to inflate. the original dodd bill was going to take power away from the fed, now it's going to make the fed apparently more powerful. we bring in our panel for not only this, but also for that election in texas. democratic strategist chris, and matt, a pleasure to have you both. why do you think the democrats are so willing to accommodate whatever the bonks want on finray? >> i don't have a good answer to that. part of it is the political reality they're facing, that this notion that you have to compromise in order to get things done. i think this is the conundrum some democrats are ignoring. that sometimes it's better to put up a piece of legislation for a vote and have it fail, force the republicans to vote against strong reform than passing watered-down reform. i think it is the political environment in right now that it's better to get

the senate banking committee will begin formal debate on the financial reform bill proposed by democratic senator chris dodd. a party line vote is expected late tonight or earlier tomorrow. sending the bill to the full senate where it could be either delayed or derailed by threat of a republican filibuster. that's bad news for anyone hoping for not only strong consumer protection but this bill in general is honestly bad news for anybody who doesn't want another financial crisis. if you want the derivatives the banks were using to high risk reform or wanted the fed opened up so they couldn't continue to just warehouse toxic assets and hide them on behalf of the banks while banks gamble wildly with your money, this bill does none of those things. if you want the ratings agency not to rubber stamp what banks wanted, that hasn't been changed either. this seems like one of those where once again those in favor of real reform will look at this bill and call it a joke and those who are against reform will call it a joke and those who have come up with half baked solution lick this health care bill will be left to

i believe if the democrats and senator dodd really want a bill, we will more than meet them halfway. >> woodruff: what are the main things that are keeping you from agreement right now? >> well, a lot of things are just basically ... have not been worked out like we're still negotiating the language of derivatives. we're still looking at some of the language that's been proposed by senator dodd on "too big to fail" because we want to make sure that nothing is too big to fail in this country. we don't want to go through the horror story that we went through just a year-and-a-half ago. there are other things, but the consumer finance product finance agency, we have talked to democrats, senator dodd, about creating it, housing it, giving it rule-making authority. but we believe that it ought to have some kind of coordination with the safety and soundness regulator because sometimes they could be at cross purposes. but we're all consumers. we don't want anybody exploited in this country. states regulate a lot of things today. will the federal government regulate them in the future? we're

senate banking committee chairman chris dodd said that the financial regulatory bill will be brought to the senate for debate in the second week of april. it is as you know a major overhaul, tackling consumer protections, derivatives and the ideas that some firms are too big to fail. is it the right solution? that is one topic, and the obama housing proposal is another. joining us to talk about all of that is glenn hubbard, dean of the columbia business school and former chairman of the council of economic advisers under president george w. bush. good to see you again. >> likewise. >> we have a lot to talk about. i want to talk about regulatory reform, but it is still in the proposal stage, and we have the administration's housing fix on the table. what do you make of principal forgiveness contained in the bill? go we >> well, i think it is a constructive problem and foreclosures are not good for anyone, and spillover into the housing market generally, and the bill gets some things right. i don't think it is enough to fix the housing problems, but it is a step in the right direction.

we'll jump on regulatory reform with bob corker as lawmakers mark up the dodd bill today. and our guest host, banking committee member senator evan bayh. finally, st. louis fed president jim bullard, a rare interview about the economy, and the power of the fed. a big session of skwk and we'll see what markets do today on this historic morning, ross. we'll see you in about 11 minutes' time. >> we look forward to it. thanks, carl. have a good day in d.c. >> okay. >>> well, tiger woods is returning to golf circuit next month at the masters. but after the recent scandal surrounding the biggest golfer in the world he's admittedly a little nervous about getting out in front of the crowds. before we go to break have a listen to what he had to say in an interview he did with espn yesterday. >> i don't know. i don't know. i am a little nervous about that toish honest with you. >> how much do you care? >> it would be nice to hear a couple claps here and there. but also i hope they'll also clap for birdies, too. hi, ellen! hi, ellen! hi, ellen! hi, ellen! we're going on a field trip

guest: unfortunately neither chris dodd's bill for the bill passed by the house, there was not a single republican vote in support of that. neither one of them goes to the heart of the matter, neither one addresses the incentive on wall street. i do not know if this is like the third rail that nobody wants to get close to, or politicians like chris dodd and barney frank are too close to wall street to begin with, getting so much of their campaign contributions from wall street, so they do not want to touch this sensitive issue of wall street compensation, but all of these proposals -- by the way, i think they will be very poor -- very expensive. if you want a new consumer protection agency, all of these proposals wind up costing a heckuva lot of money. i think if you force wall street to once again think about the partnerships that they once were. until 1970, wall street was a series of small, private partnerships for each partner had their own money and net worth on the line in case something went wrong. when the firm started to go public, beginning in 1970, up until and including gold

. >> i heard dodd say, first of all, as steve said, sheila bair attacked a dodd bill for allowing back door bailouts. dodd responds within a short period of time, his people talk to cnbc, steve liesman, and say, all right, we're going to strip out. there will be no back-door bailouts. it will be virtually impossible. over the weekend bernanke makes a little speech and says too big to fail is pernicious. i know you're a skeptic. this sounds to me like we are, in fact, moving in the direction of either abolishing or certainly curbing too big to fail bailouts by the government. >> that was my first question as well. >> then we are united. >> we are united. >> before we go out to have lunch at the french restaurant, we are united that it looks like too big to fail is dead in the water. mark, why are you stubbornly opposing this growing consensus? >> i'm the leading edge of that consensus. i really do think we need to end too big to fail. i just think we need to look beyond press releases and spin and rhetoric and actually read the legislation. when i read the legislation, i mean, granted,

bill. i know that senator dodd expressed strong feelings towards wanting a real bipartisan support bill, and i want the same. i think we'll get there. i really do. >> joe? >> they can't ram this one through, right? you'd need 60, right? >> well, you do need 60, but you've got -- you do need 60. it's possible, though, you pick up two or three folks in a tough race or whatever. but i don't think that's where senator dodd wants to be. >> joe, do you remember when senator corker came on, it must have been in november? >> yeah, 90% that health care would go. >> we asked him the odds of the health care bill. >> that was before scott brown and then -- >> yep. >> at the time, we're all naive and we thought that scott brown meant it wouldn't go through, when actually, it meant it couldn't get any worse, so they're going to vote for it. i mean, they had nothing to lose at that point, senator. >> are the odds as good for financial reform, as you said they were for health care? >> 90%, absolutely. >> really? >> senator, do you think the same thing? do you think it's 90% odds that financial regulatory r

we have senator dodd's bill on the table, and what type of impact are you expecting on the hedge fund area? >> well, it is a threat to the industry, because it is unknown, and my opinion is that the bark is worse than the bite. there are a lot of people still waiting to find out what the actual specifics are. by and large, this industry has nothing to hide, and more regulation is expected univer universally and to the extekt it protects the investors is a good thing, but how invasive to the operations and how costly is very much an uncertainty that has to be answered. >> right. it is a great point. i guess that we will have to keep watching and see really what happens next in terms of a heavier bite from regulators in hedge funds. do you think that we will see a big change in terms of the industry, the financial service industry overall? >> well, i think it is evolutionary and happening on a consistent basis. i don't think that we will wake up one morning and have a complete overhaul of the hedge fund industry, but it is evolutionary in that many of the suggestions that are out there

i know you're not a huge fan of the dodd bill as it stands right now.anlts? >> well, the biggest complaint is that we haven't yet had all of the necessary discussion to reach a compromise from the legislation that will accomplish, you know, the reasonable purposes of all that are involved. and specifically my biggest concern is the consumer financial protection agency which in its current form is an extraordinarily dangerous piece of legislation. and i think most of us in our industry would be adamantly opposed to it. >> when people on main street hear that, they say, okay, the banks are pushing back. they don't think consumers should get a fair shake, what specifically are you concerned about with the consumer protection agency? >> well, you know, i guess basically i would just like for the consumer to understand that we are for -- really for -- really good consumer protection. we've always been. but what we are pushing back on is consumer protection in a form that is being proposed that would not be good for the consumer. >> how so? >> you're talking

. >> suggestions for the dodd reform bill.helby sends a letter to treasury secretary geithner with his objections to the overall plan. he's talking to us. "squawk box" begins right now. ♪ >> welcome back to "squawk" for friday morning here on cnbc, first in business worldwide. >> it's letter. send me a letter. >> someone did it on five minutes of "american idol." simon just hammered him. >> didn't they also do janice. >> they did. bobby mcgee. >> blake sings it better. >> that's what people says. >> i'm carl quintanilla along with joe kernen and becky quick. our guest host this morning, tony crescenzi, market strategist for pimco having fun this morning talking about markets. speaking of which, the markets will get another revision to fourth quarter gdp later on today. economist expecting a slight decline to 5.8 from 5.9 coming out at 8:30 eastern time ahead of the numbers futures looking good. we got this deal between the euro zone and imf and who knows if it will stick and be necessary really and other concerns like portugal

bill. back in december, the chairman dodd introduced a bill. i plead with him to not go forward with the partisan market. others did the same. that was not amendable. there is no way to amend that bill and get it right. one of the positives is that the bill will be more in the middle of the road. it will not be where it could have them. what happened yesterday is that the pause button was hit. you are writing a column. 3/4 of the way through, your editor called and said to just turn it in. that is the way the bill will be on monday. this probably does not place a will to my republican peers. i consider this guy to be my friend. i consider his staff to be stand up people who are great negotiators. this'll be the first disagreeable -- we may have disagreed on policy. this may be the first disagreeable thing i said to chairman dodd. this is a very important bill. i cannot imagine a committee member, republican or democrat, passing a bill with this type of substance in it out of a committee in a week. i think that to be a travesty. i know this goes

bill. the senate banking committee will take up chris dodd's financial reform bill.he bill does tackle a notion of reining in too big to fail institutions, something that's quite the talk since early 2008. back to you. >>> it certainly has. thanks very much. have a great day. >> thank you. >> this morning we're hearing tiger woods first one on one interview since his sex scandal erupted several months ago. espn and golf channel interviewed woods. >> reporter: as tiger woods plans his return to the golf course he's returning to the public life. he gave two one on one intervie with espn and the golf channel. each interview limited to five minutes with no restrictions on the questions. one with espn reporter tom rinaldi. >> i was living the life of a lie, i really was. i was doing a lot of things as i said that hurt a lot of people. >> reporter: woods said he lost sight of who he was. >> it was tough. to look at yourself in a light that you never want to look at yourself that's pretty brutal. >> reporter: he said his relationship with his wife elin was a private matter.

there are bills in congress, right now, senator dodd working on a bill to get together with republicansmake this work. from what i understand, too big to fail is still lurking around. that means the taxpayer is still on the hook. >> charlie gast perino. thank you. >> president obama wasting no time moving forward. they're on the fast track. the president turning to afghanistan for a surprise visit after weeks of focusing on the healthcare overhaul. his message to afghanistan's leadership and to the servicemen and women. that's coming up on "studio b" with shepard smith. [ crowd cheering ] [ male announcer ] competition... it pushes us to work harder. to be better. to win. but sometimes even rivals realize they share a common goal. america's beverage companies have removed full-calorie soft drinks from schools, reducing beverage calories by 88%. togethewith schools, we're hping kids makeore balanced chces every day. ♪ >> shepard: after signing a healthcare bill and reaching a nuclear arms deal with russia the president focuses on afghanistan. he made a trip to afghanistan, first as comma

bill. i want to say this. this will be the first disagreeable thing i have said to chairman dodd -- this is a very important bill i cannot imagine a committee member, republican or democrat, passing a bill with this type of substance and that out of the committee and one week. i think that would be a travesty. i know this goes against what he wishes to happen and it is the first time i have spoken against it. if senators can pass a bill of this substance out of the committee in one week, 1200 pages, full of substance that has a real effect on the financial industry, the state to elect them [inaudible] i hope that people on both side of the aisle look at this bill and get it right. i stand ready to talk to mark warner. we are both disappointed. even the language that we were working on, there is still at the to work to do, it will not quite be completed in the way that we hope. there are some issues we would like to work through. if there are other issues we would like to work through. we made a lot of progress over capital issues. one thing we need to deal with as we went way down the road on consumer. i am surp

bill. i want to say this, and this will be the first disagreeable thing i have said to chairman dodd. this is a very important bill, and i cannot imagine a committee member -- republican or democrat -- having a bill with this kind of substance in it out of a committee in a week. i think that would be a travesty. i know this goes against what he wishes to happen, and it is the first time i have said it. all of you asked, and i said, chairman dodd will tell you about the schedule. if senators can pass a bill of this substance out of a committee in a week, a 1200-page bill out of substance of has a real effect on the industry, then the state that elects them might as well send robots to the senate, so i hope people on both sides of the aisle will look good this problem and really debate in committee and get it right, and i can tell you i stand ready. i talked to mark warner a few minutes ago, and we're both disappointed, because we still have all worked -- a bit of work to do. it will not get completed in the way we had hoped. there are some judicial issues. there are some other issues. w

congress will be this bill in the united states senate. senate dodd's leadership and i know i look at the bill that he, himself did. i know what he wants to do. obviously, there will be some opposition and a lot of people lobbying against it and some of the republicans are promising the financial community they'll kill this thing. i believe we will get a very good bill out of here, especially, i think this is important, this is now the number one issue that the american public is going to be focusing on and in every single issue in contention i think we benefit from that. >> senator dodd, do you expect to get this will passed on memorial day? >> the leader said he'd like to do that and i am always careful about setting target dates and my hope would be before that, if possible. let me underscore what barney said. i had positive initiative conversations with richard shelby over the last 24, 48 hours. bob corker has been willing to work on these matters and others. i know the republicans i serve in the senate that frankly don't want a just say no policy w

bill. i want to say this. this will be the first disagreeable thing i have said to chairman chris dodd. this is a very important bill. i cannot imagine a committee member, republican or democrat, passing a bill with this type of substance in net out of a committee in one week. i think that that would be a travesty. i know that this goes against what he wishes to happen. chairman chris dodd will talk to you about the schedule. that is his prerogative. if the senators can pass a bill of substance out of committee in a week, 1200 pages, full of substance with a real fact on the financial industry, then the state that elects them might as well send robots. i hope that people on both sides of the aisle will look at this and will really debate it in committee and get it right. i can tell you this, i stand ready. i spoke to mark warner a few moments ago. we were obviously both disappointed. even the language we working on, it will not quite get completed in the way we had hoped. we have made a lot of progress on capital issues. one of the things that we need to deal with in a bill like this --

predict senator ted cough mn will emerge as a major leader in the senate challenging chris dodd over the details of his billking for something really substantive. >> mm-hmm. president obama will choose solicitor general elena kagan to replace a supreme court justice john paul stevens. remember, you can friend us on facebook and follow us on twitter. bye-bye. the miracle of high-speed internet is changing our lives in ways we never thought possible. helping us to connect, and learn, and innovate - driving our dreams and our economy forward. now the fcc chairman has released a report that creates a pathway for everyone in america to be connected to the power of high-speed internet. it depends on 350 billion dollars in private investment to make it happen. investment that will be important for job creation and economic recovery. at at&t, we're ready to do our part. in fact, at&t is investing billions to build out and enhance our wireless and wired networks. we applaud the fcc chairman and his vision to provide access to high-speed internet everywhere... including rural america. everyone deserves to be connecte

the problem is so far neither senator dodd nor congressman franks' bill does anything about any of theblems that i've discussed. no change to the credit rating agency. and no barriers to the revolving door between the government, the s.e.c. and wall street. joining us now a man that is intimately familiar with all of these problems, michael lewis, his latest book, "the big shore" which basically captures so much of the culture going on wall street at this point in time. just hit number one on the new york times' best-seller's list. chronicles that downward spiral. and michael, you've made it very clear. cops working for the crooks. everything that i was just discussing but how do you stop it. >> you put it a little bit more bluntly than i do, dylan. but it is no question that there's this problem of a revolving door. the last -- three of the last four directors of enforcement at s.e.c. have taken up resonance on wall street. you know all industries have this problem of regulatory capture. but when the difference between what you're paid to work at the s.e.c. and what you're paid to wor

senator dodd has strengthened the fed even more. his regulatory reform billrs the fed to rikki lake systemically significant financial institutions and to -- to regulate systemically significant financial institutions. it creates a new financial protection bureau to be housed and funded by the fed. thank you for holding this hearing. i look forward to the testimony. >> thank you. let me see if i can use some of the chairman's time and my time to frame this hearing in this way. we can kind of get a balanced view of what the folks are saying. the federal reserve has extensive authority to regulate and supervise bank holding companies that are members of the federal reserve system and foreign branches of member banks among others. last year, the house passed legislation that substantially preserved the fed's powers to supervise these institutions. the senate bill recently introduced by senator dodd was stripped of this authority to supervise all but approximately the 40 largest financial institutions. this hearing was called to examine the potential policy impli

dodd draft. but i think before we get this bill to the floor, there will an agreement hopefully between senator shelby, dodd, corker and warner to do just that. >> that would be the best possible reform. that would come out of right field, and i think investors would love to see that. senator judd gregg of new hampshire, thank you ever so much. >> thank you, larry. >>> coming up on "the kudlow report," existing home sales down again in february. that makes three months in a row. rest of the economy may be getting better. housing is certainly not. how big a problem is this? steven meister and howard glazer will explain to us why federal policies are failing in the housing market, and maybe making matters worse. we'll be right back. too big to fail may be going down, according to senator greg. i love it. great stuff. tdd# 1-800-345-2550 to help with my investments. tdd# 1-800-345-2550 so where's that help when i need it? tdd# 1-800-345-2550 if i could change one thing... tdd# 1-800-345-2550 we'd all get a ton of great advice tdd# 1-800-345-2550 just for being a client. tdd# 1-800-345-2550 i mean, should

bill. chairman dodd who oversaw the parts of reform that will ensure more healthy americans. he did that in the "help" committee. not only will it allow people to stay healthy; it will allow them to stop being sick in the first place. our friend, ted kennedy, must be surely proud of this work. chairman harkin, who's led the "help" committee down the homestretch and deserves our thanks for the work he's done by making college more affordable. and chairman conrad will continue to guide us through the budget reconciliation process, a fiscally responsible final piece that will reduce the deficit and ensure more americans can afford health insurance. i hope republicans finally learned a strategy of delay and fear might slow the process but cannot stop it. i hope this week when we take up the final revisions, our republican friends will finally act in the interest of their constituents and not in the interest of the insurance industry or their political party. the other side has made it clear that they'll try to stop progress based on a technicality. but with substance, mr. preside

senator shelby sent a letter to timothy geithner saying that the bill drafted by democrat chris dodd basically falls too short. he said it fails to end the problem of too big to fail, exposes taxpayers and shelby says there is still room for a bipartisan compromise. also, the white house unveils a new round of housing aid today. as president obama is really under increasing political pressure to help struggling ohm owners and send the tide of closure. it provides incentives to eliminate debt for borrowers who owe more on their house than their house is worth. the program used the remaining $7 billion t.a.r.p. funds. >>> finally, for those of you with teenage daughters or a younger audience, tell them to pay attention to this. "twilight" the vampire heart trob reportedly has his own wax figure in london. fans have been queueing to get close to the figure. some saying he was so real, they couldn't try to resist kissing him, nicole. look, i haven't even going to see "avatar." >> you have a little experience at being a wax statue, don't you? >> we do. i don't know. do we have that tape?

i look at the bill that senator dodd did, i know what he wants to do. there will be some opposition. there will be some people against it. some republicans are promising they will kill this thing. i believe we will get a good bill out of here, especially -- this is now the number-one issue the american public is going to be focusing on. on every issue in contention, i think we will benefit from that. >> the leader has said he would like to do that. i am careful about setting target dates. my hope would be before then, if possible. let me underscore what barney has said. i have had positive initial conversations with richard shelby, the ranking republican on the banking committee, and barred corker -- and bob corker has wanted to work on this. there are republicans in the senate who want to be part of this debate and offer constructive ideas to this proposal. i am more optimistic, in light of what happened in health care. the outcome has strengthened our aim in reaching out to people who want to be part of the solution. >> are the republicans outside of

chairman dodd has a bill now through the committee process. i think the president expects that we will finish financial reform in the next couple of months, certainly by the time we mark the second anniversary of the financial collapse in the early fall. >> do you think the president is going to be taking a hands-on role to get this done as he did with health care in the final weeks, to try to meet with republicans to get them on board? >> i think the president has been very hands-on regarding financial reform and i think it is one of the president's top priorities now. understanding, as i have said many times is we need strong rules going forward to prevent the type of collapse we saw in the fall of 2008. >> i wanted to follow up on the question about israel and keeping that event closed with the prime minister. the president is signing an executive order on abortion. why would that be closed press, no pictures. >> we'll put out a picture. >> a picture -- >> it will be from the actual event. >> what about allowing us in for openness and trans

what can you tell us about senator dodd's efforts -- there is a report he will unveil a revised bill.uest: there is a lot of discussion about how to get here to there. the administration has been pushing for what is called a consumer finance protection agency. senator dodd seems to be finding a compromise with republicans that appears to have that located, not as a stand-alone agency, but within the treasury department. removes an obstacle, it happens, of getting something passed. the house and december passed its version of financial reform. there will still be a job mary up the the two different provisions. the senate moves at a glacial pace. if it happens this week it raises the chance something gets done. the further we get from epicenter of 2008 the less urgency there is to make real change. it is a race against time, in and away. -- in a way. host: kevin hall, thanks for the update this morning. guest: thanks for having me. host: we go to your calls on the issue of u.s. nuclear weapons strategy. every board and " the new york times." the white house is rethinking nuclear policy.

senator dodd and chairman frank earlier today at the white house said, among other things, and when i spoke with chairman frank on sunday night, he said that he expected that we would have a bill signed into law by memorial day. do you agree? >> well, tyler, i'm not going to comment on the exact timing of legislation. but i think that both chairman dodd and chairman frank and the leadership up on capitol hill understand the importance of this legislation, and the need to move forward urgently. we in the administration look very much forward to working with members on the hill, as they try to bring this over the finish line as soon as possible. >> when it goes over to the finish line, mr. secretary, will it include the volcker rule or not? >> well, certainly, sue, the legislation that was passed through the banking committee earlier this week includes this. we're very pleased about that. we think it's an important element of making sure that we manage systemic risk in the system. >> but is it a deal breaker? >> i'm not going to lay down specific deal breakers, sue, here on television. it's obviously an important element of our proposal. it's something we feel very strongly abou

bill. >>> the president begins to shift his focus to boosting the economy. giving senator chris doddenator barney frank about financial reform. >>> secretary of state hillary clinton just back from mexico, beginning high-level meetings with pakistani leaders in washington. >>> the fda and members of congress discuss strict, new rules today on tanning beds. they are imposing stiffer warnings about skin cancer. >>> and congressional leaders discuss google's dispute with the chinese government. google shut down its search engine there. >>> for some of you, your local news is next. >> for everyone else, "america this morning" continues after this. from covergirl and olay. simply ageless. this advanced formula with olay regenerist serum won't glob up inlines and wrinkles like the leading department store makeup can. get out of that epartment store! and into simply ageless. you'll look amazing and happy too. simply ageless, from olay and easy breezy "beautiful covergirl. i'm a covergirl. simply ageless blush and new corrector and concealer. i'll give you $500 off. show me the carfax. i'll

after that, the president returned to meetings in washington christopher dodd unveiled his financial overhaul billoday. reportedly, it expands the powers of the federal reserve board but create a consumer protection program with less authority than the president had asked for. politico reports that some house members are driving cars paid for by taxpayer money. nearly $3,000 in the last quarter of 2009. nine other members are paying more than $1,000 a month. some say that behind these cost is the result of an energy policy requiring the vehicles that they choose be fuel- efficient. others say that their two-year term prevents them from signing longer pleases. -- longer leases. >> our mission is to make everything more free and open. >> with more than 400 users online, it is the fastest growing website and. the public policy director of facebook. >> committee members mark up legislation in the house today. live coverage that 3:00 on c- span 3. the budget meeting is part of an effort to put the matter to vote by march 18. then the rules committee will meet wednesday to work out the structure of the

business community believe that we need a financial regulatory improvement bill and we support what's going on with senator dodds now in consultation with the community about proving the bill that he brought out the other day. number one on top of the list is to make sure that the consumer protection organization that is envisioned in this bill is put in a position that it does what it's supposed to do, not to intrude in every type of consumer credit in the country, including whether your doctor wants to give you credit. most important, we have to recognize the idea of having a single regulator reporting to no one with ultimate authority to make all of these decisions without any consultation is not the american way and we're going to have to deal with that and i know we will. >> what would be acceptable to you? what would you like to see? >> well, i think we all agree on the subjects. i think we need, i think we need it -- >> i understand what you don't want. >> i'm not sure you do. well, a positive thing is we want a consumer protection operation that is, that brings together the work of many of the existing

bright, some substantive recommendations as we're negotiating with senator dodd and others to come up with adjustments we need in the billke it work. you know, of all the subjects we're going to follow over the next weeks, we have got to get this right because every other subject follows and whether we're going to get out of this recession -- >> neil: i know, i know you're a diplomatic nice guy but even i can see where there's smoke, there's probably fire. this goes back to the time you were nice enough to chat with knee on your building overlooking the white house which is as close as i got and you got. i wonder if there's something going on here. i thought the bad blood had gone away but that was then and apparently it continues now. what's going on? >> i think i would tell you that the speech was written by the political department and certainly not by treasury. n q&a and discussions with the press, he began to look at the subjects. i told him clearly we want to bill, we want a bill this year. >> neil: no, no, they're seeing you -- tom, i love you but they're seeing you as an obstructionist on healthcare and on this.

for his observation; as well as the senator from -- as well as other senators on the bill: senator harkin, senator dodd and others, and ranking members too in many respects. mr. president, i yield five minutes to the senator from louisiana from the time under our control on the bill. ms. landrieu: thank you, mr. president. i thank the chairman and want to add my compliments to him for his extraordinary leadership over the last several months in managing this very important piece of legislation through the process. a major piece of legislation that garnered 60 votes on the floor of the senate. mr. president, you know because you've worked on many pieces of legislation, even in your short time here in the senate but your longer time in the house, how difficult that is, and particularly on an issue like this, that has eluded our country time and time again. even though great attempts were made by extraordinary presidents and wonderful congresses in the past, this victory has eluded them. but we are close to capturing it now. and so i want to thank the chairman of the finance committee. he probably spent m

their bill, he says, is beth panels for too big to fail big banks. i like that. i have supported the dodd approach. i know the language may not be 100%, but the language looks pretty tight to me. the end of too big to fail bailout nation. what is your take? >> there's a lot in that bill, as you know. i think we have a problem with too big to fail. i think the perception will be we have ended it, and everyone will be happy until the next crisis. in reality, what i see in there and the powers they may or may not have to handle stock holders is not that clear cut. >> barney frank said we covered it live, they were standing in front of the west wing of the white house, the stock holders are going to be hurt, the creditors, his language is tough, when you read the fact sheet, it's tough. they're talking about bankruptcy courts. this $50 billion assessment, the deputy secretary is right and the treasury is wrong. that might be a debtor in possession safety net to get them into bankruptcy court to sell them. that's what imimpresses me. >> if only one is in trouble at that point, perhaps it will

bill. live coverage of the u.s. house when members return hear on c- span. senate banking committee chairman chris dodd released financial regulation proposals yesterday. we will hear from senator dodd next on c-span. after that, a panel of governors talk about health care legislation, and then president obama travels to ohio to discuss health care. on tomorrow morning's "washington journal," we will talk about health care with john the curio. after that, a representative from the european union. later, an update on our recent report on a u.s. embassy in kabul. and then that two year anniversary of the collapse of bear stearns. "washington journal" starts every morning at 7:00 a.m. eastern. >> c-span -- our public affairs content is available on television, radio, an online, and you can connect with us on twitter, facebook, and youtube, and sign up for e-mails at c- span.org. >> senate banking committee chairman chris dodd spoke with reporters about his new bill. he intends to bring the legislation to the full committee for markup soon. this is about 20 minutes. >> good afternoon. sartre to be a couple

. >>> and the health care bill isn't the only legislation sticking to party lines by a narrow 13-10 margin. the senate banking committee led by connecticut democrat chris dodd has improved the financial reform bill designed to overhaul wall street's regulations. the bill would give government unprecedented powers to split up firms considered a threat to the economy and put together a council of regulators to watch for risks in the financial system. >>> and the community organizing group a.c.o.r.n. is shutting down due to financial difficulties. it comes six months after a.c.o.r.n. employees were videotaped giving tax tips to conservative activists posing as a pimp and a prostitute. shortly after that scandal, congress voted to cut off all grants to the organization. >>> the chinese government is slamming google for its decision to shut down its website there. instead, redirecting users to a search engine in hong kong. the move comes just two months after the search giant threatened to leave the country entirely over a dispute about hacker attacks. google's decision ends a nearly four-year effort to help bring more information to chinese citizens and loosen

dodd and chairman frank in the house. they have two separate proposals. the senate bill is getting are ready to be acted on.s you know, republicans don't like stuff in that bill. what he suggested is let's not have health care all over again. let's not do a sweeping bill. let's break out that one issue that he thinks should be dealt with. less li let's listen. >> i think we could potentially get an agreement. i think nobody thinks once again we ought to have a situation where tax dollars are used to rescue a big failing company. we need to fix that and not do it again. >> any merit to that argument? just that one issue out and come back to all the more complicated issues. >> two key tests. are we giving consumers basic protection. our system did a terrible job. the damage just to the average investor, the average family, the average business, and they're still suffering from those basic mistakes. the other key test is to prevent this from happening again is to make sure we deal with too big to fail. we're constraining risk failure for the major financial institutions. if they mess up is the choice for them

bill was available before the vote, 11. there was more, but you get the picture. now, chairman dodd conducted the longest markup in the history of the "help" committee. on what subject? health care. public meetings, many of them on c-span. mr. president, there's no bill anymore. it was signed into law yesterday. the work that we did here on christmas eve through the storms of 2009 is now the law of this country. and we're going to start in just a few minutes making that law even better. in my state of nevada, mr. president, 600,000 people will be able to have insurance that's never had it before. 24,000 small businesses will be eligible for a subsidy to employ -- have people employed that have health insurance. they didn't have health insurance because they're cheap or mean. they couldn't afford it. the insurance companies would -- they'd get a palsy, they would cancel one if somebody got sick or hurt. now someone who's 26 years old can go to college or do whatever they want to do and not worry about losing their insurance until they establish themselves. mr. president, this legisla

bills would be negotiated on c- span. maybe that was idealistic, but there are all kinds of back room deals being cut, special provisions for christopher dodd. i had a list and people can contact my office. i think when politicians break their word war make promises and do not live up to it, they need to be held accountable. that is the biggest problem for republicans and now we are trying to win back the confidence of the american people. host: we are going to take another call, but first, what are the implications for your party if the bill passes, or if it does not? what is the impact? guest: if it passes, we will see what needs to happen to implement it. it is a massive bill, well over 2000 pages long. that is why i do not believe the cost numbers. we will have to much of that and see what happens. if it does not pass in its current form, then the challenge is, how do we start solving these problems? i think republicans should be introducing individual bills -- and i plan to do this -- to tackle these problems. the problems of health care in america are not going away if the bill passes. if the bill does not pass, they will not go away

bill. details are expected tomorrow. we will cover the announcement by senator chris dodd when that happens.e're joined on the republican line from cape cod. caller: when i turned on your reading an article on health care. both sides, neither side is talking about what i'm about to say. there are not enough doctors right now. you cannot get a doctor in many parts of the country. there are not enough to go around. the administration wants to add that depending on whom you're listening to, 30 or 40 million more people. if you gave a general practitioner 1000 patients -- that means we need 30,000 more doctors. where are we going to get them? if the healthcare bill passes and everyone's dollars running run with a brand new insurance policy, nobody will have a doctor and it will be like running an engine with no oil in it. it would seize up and the u.s. would fall. host: thanks for the call. the front page, more on rogers, the white house social secretary was leaving after 14 months. while she is leaving, while she is done at the white house -- one reason, she insisted on calling her bosses barac

. -- cap and a trade bill is pretty much dead. i think chris doddat a point where he will sign off on anything for a legacy, a bill that will have his name on it. he keeps maneuvering on a consumer protection agency and they are convinced he is willing to do anything to get a bill done. i still think that whatever bill emerges will be won the industry will gladly live with. i do not think it will be a financial services bill that the industry would have a problem with. we see on so many of these issues, i did the agenda being watered down or in gridlock, that brings me to the main thing i want to talk about. this mantra that a good -- that gridlock is good. for years and years, gridlock is good. i am no longer convinced that it is necessarily good if we start looking like greece. i want to spend a few minutes talking to you about how utterly hopeless it appears to me that we get anything dramatic done that even if the democrats take a good beating, it might make it more difficult to get anything done on budget deficits. the one thing i always point

bill that are on the verge of becoming law. in connecticut there's $100 million for university hospital and sertfide to senator dodd. $500 million in medicaid to bailout the health care program in massachusetts. the small state of vermont gets $600 million for their medicaid program. this bill will subsidize new jersey pharmaceutical companies. will give $5 bill to union health care plans in massachusetts in michigan. it will slash medicare advantage programs for every state except florida. or exempt blue cross blue shield of michigan and nebraska from the new annual fee on health insurers. this bill will provide higher medicare payments in north dakota. and exempt hospitals in hawaii from cuts. all of these will become law the moment house arrogantly deems this bill passed to the president. is it any wonder the american people don't like this bill being crammed through, forced through, bribed through? i yield back. the speaker pro tempore: for what purpose does the gentleman from new york rise? >> i ask unanimous consent to address the house for one minute. revise and extend. the speaker pro tempore: without objection, the gent

bill to reform the nation's financial system. a key element is a new agency to protect consumers against things like credit card and mortgage fraud. senator chris dodd is proposing to put the federal reserve in charge of that consumer protection unit. other democrats are opposed; they want it to be an independent agency or based at the treasury. i asked dallas fed bank president richard fisher about that: can the fed really be a watchdog for consumer interests? >> i think we can always do a better job at anything we dochl we're working hard to do a better job on this front we i think we're doing a better job, we're trying to do well. it will be up to the congress to decide where they vest that particular aspect of bank regulation. >> susie: meanwhile, barney frank, head of the house financial services committee, calls the proposal to put the consumer watchdog at the fed a "joke," saying the house will not accept it. >> tom: toyota's loss was its rivals' gain when it comes to last month's auto sales. general motors reported a 12% sales increase. but with a 43% surge, ford outsold g.m. for the first time in decades. there was some good news for chrysl

at some level the white house and chris dodd in particular, since as you know, he's retiring from the senate, they just want to get a bill. how do we get republicans and make republicans cooperate or induce a larger number of republicans to cooperate? and so they'll get some pushback from the left if the regulator is made too week in that process, so i would bet that the thing ends up at treasury. that's how ultimately once you get barney frank and the house position reconciled with the senate position, i'm betting that it won't be independent. it won't be stand alone, but it will be within treasury. there's negotiating left to do. >> john har bood, putting his chips on the table. is the legislation that congress is closing in on viable? will it do any good? joining us now janet tavacoli, from tavacoli structured finance. and and the cnbc contributor and plus our own rick santelli. all right. janet, let me go to you. i frankly think this consumer protection thing is a distraction from the main issue of too big to fail, but let's do consumer protection. john harwood thinks it might sit inside the treasury. i think mr. bob