prior to dodd-frank actually? >> i think the concept for example caps on leverage, capital floors are certain examples of things that have been around for a while. i think would dodd-frank does and as a sort of a positive thing it does, it really forces an entry point for using those types of mechanisms in anticipatory. in other words i'm going to go back to my discussion earlier about using living wills. this gives us an entry to evaluate the large banks that are systemically significant and evaluate whether or not they really could survive or whether the system can survive their failure. that is the key to any resolution plan is to take whatever it is and as chairman hare suggest putting it through a reality check. if it doesn't make that reality check, using those tools to are there spin off certain businesses, to shrink the company, to simplify their organizational structures. if you look at some of the stuff that came out of the lehman bankruptcy, 3200 something different entities that were comprised. they ar

the regulatory -- regulatory process is further hampered by the fact that dodd-frank, that the dodd-frank act was so poorly drafted. here's just one example. simple example that illustrates my point. one of the first of dodd-frank rules promulgated by the cftc was an interim final rule for quote, reporting the reenactment swap transactions. stated purpose of the rule is to reconcile two conflicted dodd-frank provisions, section 723, and 729. the cftc rule proposal specifically states, and i'll quote, the inconsistencies between these two reporting provisions must be reconciled in order to eliminate uncertainty with respect to the actual reporting requirements for the reenactment swaps. in other words, our regulators and forced to undertake additional rulemaking in an effort to correct the inconsistencies and errors in the dodd-frank act. although i'm not sure how rules can alter statutory requirements, it's clear that dodd-frank has fundamental flaws and should be revisited. today, i look forward to hearing of the regulators plan to improve this broken regulatory process, particularly how

it is a requirement of dodd- frank. of limitation of living wills is left to the fdic and the federal reserve. they have until january 2012 to work on it. it was part of the proposal that treasury made and we have backed the concept the entire time. you are right, that is a critical tool on how -- and how thoroughly it that is enforced and how thorough those plans are will make a critical difference. in terms of the rating agencies, they're watching this closely. they should. again, have made it clear that what they're doing is monitoring it. they are seeing -- >> they are making calculations and the calculation is we're reading the banks and giving them a preferential position with respect to the market based on their confidence that someone else will step in. >> that is correct and they are doing that worldwide. they have said we're closely monitoring the situation to see how these resolution regimes are implemented and to see if there is the political will to ensure the there are no bailouts in the future. >> what wo

dodd frank did allow for it. emergency exit circumstances when the secretary and the board of governors decide that. that should be the absolute rare occurrence. it shouldn't happen. clearinghouse hasn't failed in this country. we survived two world wars and great crises. the clearinghouses have to have a collection of margin. they have to have it on a daily basis. they have to have property bought management. >> have to make sure everything clears. >> they have to make sure everything clears and that which clears has available pricing, available with witty and also with regard to the comment letter you referred from the u.k. it is important the clearinghouses have open membership, the access to the clearinghouse cannot just so narrow. clearing houses are at greater risk if it is narrow membership benefit broadened out and markets work best when they are open and competitive. >> since there are international implications in derivatives trading and everything, should we listen to our counterparts in europe? like t

it ended up being part of dodd-frank. and i'm out, as i know all of you are, and certainly my colleagues, we talk with these -- with banks throughout our country. small community banks and others about the examiner charge and the examiner charge that comes into their institution, basically their attitude, their understanding about whatever regulator they're working with changes pretty dramatically how their bank's status is interpreted. the examiner in charge is basically king. as you look at the volcker room, again, mr. volcker, whom i respect greatly, couldn't really describe to us what prop trading is. you just know it when you see it. how will you institutionalize the volcker rule when you have these people that have judgment? i don't know how you do that properly. i'd love to have any help with understanding that. >> so i think -- there are a couple of things. first, when you're talking about 7,000 financial institutions that you are with some of the very basic standards the balance is always as between allowing for

this is what we passed in dodd-frank. it was changed in conference to allow one person to run the agency with total discretion. and what we are advancing is not politics. it's the way government has always functioned, and that's not one person with unbridled authority. you've also come and let me say this, professor warren has done a great job of really fooling the national media into thinking oh, this can easily be appealed. nothing could be further from the truth. sean duffy has introduced a bill which is as important as will i am introducing, which tells you that you can even appeal a ruling unless the ruling would bring down the whole financial system of the united states. how absurd is that? you have to file -- some have to file within 10 days of the consumer protection bureau issuing something. 10 days, that's absurd, it's unheard of. its design and its super majority, not even two-thirds, 70%. and i tell you what, no one has gone past this crazy story about that we are just attacking ms. warren, or that we don't wa

with dodd-frank we can expect that cost to go higher. one community banker tells me they have five compliance officers out of a staff of less than 100 employees. in speaking with compliance officers, they tell me that regulations that are being put forth to implement a range of new requirements are being written too quickly without specifics and guidance for banks to implement as intended. they point to regulations that are duplicative or contradictory but which they must comply with, even if the banker or the consumer does not view the regulation as having any value or benefit to the consumer. i might add even if they can understand it. such compliance efforts cost time and money, and it is vital that federal regulators consider the total impact of all regulations, not merely each regulation in each isolation, in each isolation, and work to reduce unnecessary regulatory burdens on an already heavy regulated industry. now, with these concerns in mind, i would like to call attention to several regulations and highlight the impact of an ov

and dodd-frank is going to curtail those, quite rightly. and to that extent, yes it affects safety and soundness if you say that it's affecting profitability. but a bank not able to lend on a fair and un-- nondeceptive basis shouldn't be in basis. i don't think any of the banks here at this table are doing that. and i want to emphasize that. the issue really here is not about community banks and credit unions. there are some bad actors in both of those spaces. but generally they're the salt of the earth. the problem is the large banks. and we don't have any of the large banks on the panel today. and it worries me sometimes to see small banks toeing the line -- towing the line for the large banks. >> mr. wilcox, would you agree that some of these regulations will reduce your profitability and also reduce your ability to create jobs? >> i'd say without any question it will. it has already. still feeling the fallout of the last act. this dodd-frank thing is just getting started, and we're seeing the first bits of that come out. and certainly t

host: senate republicans push to repeal dodd-frank. that is from the senators website on capitol hill. florida, thank you for holding on, richard from the independent line. caller: i agree with one of your previous callers. big business and wall street brought this country down to its knees by sheer greed. and until the politicians of both parties band together and stop the lobbyists from bringing any money to congress, nothing is going to change in the long run. that is all i have to say host: the repeal of this legislation would do what, do you think? caller: i think it will do harm. i do not think there was enough regulation and the first place to allow this debacle to take place. center are later, they will have to think of the average people in this country and not just the rich people. host: from twitter, someone who identifies himself as dirty water. bethlehem, pa., jim, democrats line. caller: thank you very much for c-span. it appears that the republicans are utilizing a bad situation to push through their agenda for basically

>> well, i think in the u.s., in terms of dodd-frank?rose: yes. >> well, i think there are still some things we're working on to improve, particularly around securetization and -- >> is that code word for we're heavy lobbying in washington to see that they understand our point of view. >> you would be shocked to hear lobby is not how i would define it. i think there are discussions on how the legislation is going to be written, how it will be codified, and i think we are providing as much expertise as we can to the people writing those rules, and i think that's appropriate. >> rose: and the other thing was confidence. >> confidence. if i go back to early 2010, i recall being on a panel of c.e.o.s on the west coast, and with the turmoil around dodd-frank, the turmoil still from all of the problems in the financial system, there was a bit of, i would say, difficulty between the private sector and the administration in terms of a host of things, in terms of regulation, in term of where taxes were goi. that's changed dramatically. i think th

the dodd-frank act creates a comprehensive and robust regulatory framework.he statute creates structure for government to monitor and respond to systemic risk. it makes clear no firm will be considered too big to fail. it requires regulators to impose heightened credential standards a large, interconnected financial firms. it provides for the comprehensive regulation of the derivatives markets for the first time in the statute establishes a single agent he dedicated to protect and consumers. for the past nine months, regulators have been hard at work implementing these and many other critical reforms contained in dodd-frank. even as millions of americans are still recovering from the crisis, some on wall street, k street in capitol hill seek to slow down, roll back or even repeal these crucial reforms. some complain about the case of reform. some say there is a lack of coronation by the regulators. some argue the transparency will harm the quiddity or that barge will require this will unnecessarily tie of capital. some complain that our reforms will unfairly

the dodd-frank act creates a comprehensive and robust regulatory framework. the statute creates a structure for the government to monitor and respond to systemic risk. it makes clear that no firm will be considered too big to fail. requires regulators to it provides for the comprehensive regulation of the derivatives market for the first time. and the statute establishes a single agency dedicated to protecting consumers. for the past nine months, regulators have been hard work in blunting these reforms contained in legislation. yet, today, even as millions of americans are recovering from the crisis, some on wall street, k street, and capitol hill seek to slow down, rolled back, or even repeal these crucial reforms. some complain about the pace of reform. some say that there is a lack of coordination by the regulators. some argue the transparency in the derivatives markets will harm the quality or that margin requirements will unnecessarily tie up capital. some complain that our reforms will unfairly disadvantage u.s. firms as they compete globally. some say

you, yes. >> de dodd-frank act gave the -- the dodd-frank act gave the sec the authority to move forward with the regulation to impose the universal fiduciary retail investment advice and after delivery the report to the congress in january, the two commissioners dissented in house and republicans on the house financial services committee are calling on the sec to a slowdown that rulemaking until more economic analysis is done. is this provision a priority for the administration, and are you pushing the sec to move forward with that rule making? >> i'm not going to inject myself into an sec rulemaking i think given the dependants would be inappropriate, but i do think that the basic idea that whether you are seeking financial but a voice from a broker-dealer on the one hand or an investment adviser on labor and their health the same standard, the same fiduciary standard how the engage with you is important because for most americans they don't know whether they are talking necessarily to an investment adviser or broker dealer in many cases the same person is acting as one of the other in

even though some of the efforts of have been positive like the dodd frank bail and so forth the political power of finance so strong both in the united states than in europe and other international floors that they're trying to block the implementation of the regulations that are really required so intil we find a way to overcome the political power of finance which is still so massive in the world we're not going to be able to implement the kinds of structural changes in the financial sector that we need to shore up our economies and maintain financial stability so that's one major problem that i still see and know that we're been talking about this weekend now the i.m.f. and the world bank both stem from a meeting just like this at the same venue what new official or bushell agreements or maybe even new institutions could we see as a result of this conference. well there won't be any new institutions as a result of this conference because after all we're mostly just academics whereas the previous conference were government officials. so we are talking where they were also doing but i th

by the way, senator dodd is no longer a senator but mr. frank is the ranking member of the house financial services committee. >> host: st. joseph, missouri. you're on with our guest. democrat's line. good morning. caller: thank you for taking my call. under the dodd frank, isn't that law that's going to take effect on july 21, doesn't that make the banks now not too big to fail? also, doesn't it deal with speculators getting in there and jacking the prices up and also elizabeth warren is the right choice for that job and i know she's a democrat. thank you. guest: i think the caller is exactly right. the wall street reform act addresses a number of issues including preventing too big to fail, including trying to end speculation in the markets that raises prices of oil, it raises the prices of food, and it also as we've discussed creates the consumer financial protection bureau an idea of professor elizabeth warrens. >> georgia, you are next. howard, independent line. caller: yes, sir. for years i was heavily blaming the democratic party and i'm

provisions of dodd/frank, there's nothing that's breaking these banks down in size and so they continue to threaten the taxpayer. >> rose: gretchen, thank you. >> you're welcome, charlie. >> rose: simon schama is here. he's university professor of art history and history at columbia university. as a student at cambridge his former teacher taught him to be unapologetic about the gift of communication and that he has. as an academic and journalist his work has encompassed everything from history and politics to film and food. his new book is called "script, scribble, scribble" writings on politics, ice cream, churchill and my mother. i'm pleased to have simon schama back at that table. welcome. >> thank you, charlie. >> rose: another damn square thick book. >> charlie... >> rose: "cibl, scribble, scribble." >> well, you know, it's not quite shape up the, the rise and fall of the roman empire, alas. >> rose: give me context. that's what the duke of gloucester said to getman. it was another thick damn square book. >> yes, that's right. the year was 1776. i had a kind of face to face-- i can

the ots was abolished by dodd-frank and for good reasons. chapter 3. these are the inflated credit ratings and i'm just giving you some highlights here and then i will turn -- answer some questions and turn us over to the staff but i want to say most of the time chapter 4 is mainly goldman. chapter 3 is the inflated credit ratings. inflated credit ratings in the words of our report on page 5 now of the report, and the executive summary. inflated credit ratings contributed to the financial crisis by masking the true risk of many mortgage related securities. page 6 of the report traditionally aaa is less than 1% likelihood of default. still on page 6, 90% of the aaa ratings given to sub-prime rmbs's, residential mortgage-backed securities that were rated in 2006 and 2007 later downgraded to junk. and so we also say in our war dead in acura aaa credit ratings were a quote key cause of the financial crisis. there is an inherent conflict of interest when the issuer pays. in other words, when the money that is coming into the credit rating agency comes from

>> dodd-frank surely would have helped avoid it. i can't say with certainty it would have avoided it. it would have been a heck of a lot less severe. or connections in dodd-frank, we lay those out by the way in each chapter what the legislation did to address as the problems we have identified here. so we do go into that in each chapter. i make some reference to it, so i think it would have avoided if we had that in place. i believe it would have avoided it. i wish i could say that with 100% certainty. >> can you talk a little bit about -- [inaudible] >> there's two parts get one is the proprietary trading which we tried to end in many cases, and at least we kept fully disclose in other cases so we are going to reduce it, tried to make much more safe when it's allowed and not allow it at all and many other cases. the other part is the conflict of interest which there's not been enough attention paid i don't believe to the fact that we prohibit conflicts of interest in these kind of transactions. we live it up to the regulators, but

dodd-s what we pass in ted in frank. what we are advancing is not politics, it is the way government has always functioned, and that is not one person with unbridled authority. you have also, and let me say this, professor warren has done a great job of really fooling the national media into thinking this can easily be appealed. nothing can be further from the truth. sean duffy has introduced a bill that is as spartan as the bill i am introducing, which tells you you cannot even appeal a ruling unless the ruling would bring down the whole financial system of the united states. how absurd is that? someone has to file within 10 days of the consumer protection bureau issuing something. that is absurd. it is designed and a supermajority. it is 70%. i tell you what, no one has gone past this crazy story that we're just attacking ms. warren or do not want consumer protection. i know this congress is more sophisticated to believe that. if they are able to hoodwink the american people, they have pulled the real sham here. i am a

the only clearing organizations pre-dodd-frank were regulated exchanges. clearing organizations seem to have reformed well in 2008, and furthermore, it seems the prescriptive regulations have gone beyond dcos and are actually part of the exchange, affecting, excuse me, impacting the exchanges as well. can you characterize more specifically how the cftc is dismantling the core principle regime and how it would negatively, let me be more unbiased. how it would impact cmes exchanges and clearing organizations? and also did any of the dcos fail in 2008 that would work chairman gensler is concerned that have led him to override core principles for dcos? >> no, sir. none of those detail. prior to 2008, 2007, cme cleared $1.2 quadrillion of value without one hiccup. so that's just for starters. and the way chairman gensler is trying to roll back some of the modernization act of 2000, for example, would be on product. we want to launch a new product where the ability to self certify that product. we innovated can have the ability seltzer fight so we can be first t

we got dodd-frank which takes the implicit in makes it explicit.ow we have in statute that these businesses are actually too big to fail him the federal government will now step in essentially to bail them out and that will codify dodd-frank and will cost the taxpayers literally billions of dollars more and to your last issue to the devolution fun. that is the problem with the last piece of legislation in the same problem with this piece of legislation as well. their artery legislators out there that are supposed to be doing the job and we would like them to be doing so whether it is the cftc, the fdic and the like are go now you have created the cfpb. these are charged with making sure that the industries are regulated in a proper manner and if they are not doing the job than we need to have the a proper oversight for them. with that i will first of all yield to mr. mulvaney for such time as he may consume. >> thank you mr. garrett. before you start mr. doggett when you are telling the story about the sec oversight coming out of the republican par

host: the latest cftc chairman of would abide obama administration, gary gensler, because of the dodd-frank act has gained widespread power, larger to regulate the derivatives market which is a $100 trillion market covering everything from credit default swaps to these crazy toxic assets that took down the financial system. what is your position there? do you feel like this is the place where that power should have gone? what's your take on how insular have done so far? >> guest: i think he's doing the best job he can but is not being given resources. he so we don't have the money. we're not given the money to do the job. and in addition, offstage there's been a lot of reports by my sources of him being bullied directly, and often in front of reporters by high ranking of the exchanges. as you know the cme group now owns the oil market that we're talking about. there's been a couple of major executives literally pinned him against the wall and pointed right in his chest, right in front of the press. i mean, i think the arrogance is so great that the bowling, people are regulate this market i

she is going to have a lot of regulatory control with dodd- frank. one of the things that the cr does, oversight of her committee. host: caller: and legislators are serious, should do not all be in favor in programs that would cut 15% as well as a closing 1000 basis we have around the world and stop paying for other countries national defence like ron paul suggested? guest: i agree with you, sir. i am also on the foreign affairs committee. i want to tell you that we have had several hearings as to how the american people are spending their money, eight we are giving to home, and how they're spending that money. that will absolutely be on the table to discuss. as i mentioned earlier, it does not make sense for us to be giving money to countries and we are baring 42 cents on every $1 give them. we can no longer afford to operate every have -- as we have done in the past. we need to do what is right for the american people into the priorities of the united states first. host: austin, texas, on the democratic line. caller: my aunt lives in syracuse and e

. >> because of the passage of the card act and many of the reforms that came in dodd-frank, banks are seeing greater expenses and they are seeing less wiggle room in their ability to raise rates and fees. jamie dimon from chase had a great line. he said if you run a restaurant and you can't charge for the soda, the burgers are going to get a lot more expensive. >> reporter: but there are some strategies for consumers who want to keep their banking charges low. first, understand all the penalties and how they are imposed. it can help to bank with a smaller firm or online, where fees are often lower. if you are not interested in switching banks, consider getting direct deposit for your paycheck. it will often qualify you for free checking. finally, you may not want to bank at a bank anymore. >> credit unions have lower fees, lower balances to avoid fees, and much better deals on loans than banks do. >> reporter: there is some hope for consumers that things will get better. the new consumer financial protection bureau will open july 21, and one of its duties will be to monitor banks in t

the place there is not a lot of confidence from any of the guests here that i've spoken to that dodd frank or the basel rules go far enough so that's another issue another concern is over the you as i mentioned the u.s. dollar is the reserve currency and in fact george soros said that other currencies it no longer really is that their currencies are feeling not well as well the euro being one of the first vacation of currencies and something that was really blamed on although nobody really knew. the alternative is a number of factors in the us economy and a debt to g.d.p. ratio that's really grown and i think as i spoke to earlier is that he attributes that enlarged heart to bailing out the banks bailing out wall street and not the public which has just hurt revenues in the united states further and driven it further into debt something that we didn't see dealt with as right here in the united states we saw the government barely avert a shutdown and we saw them essential we only cutting thirty eight billion dollars from the budget which is nothing more than one trillion dollar deficit so r

even though some of the efforts of have been positive like the dodd frank bill and so forth the political power of finance remains so strong growth in the united states and in europe and other international flora's that they are trying to block the implementation of the regular ations that are really required so in till we find a way to overcome the political power of finance which is still so massive in the world we're not going to be able to implement the kinds of structural changes in the financial sector we need to shore up our economies and maintain financial stability once again we need global cooperation to get us out of this current crisis but also to help us make a transition to a new type of economy new type of economy where power is more widely dispersed around the world but also an economy that can deal with climate change and make it green transition that we need so we this is a fitting place to have a conference at this time when we have this short term challenge in this longer term challenge that requires global cooperation and the bric countries are going to have to play a

to boost the poll ryan budget which of course cuts taxes on corporations who rolls back parts of dodd frank and of course fundamentally changed changes and i would say get rid eliminates what we know is medicare so the so the pot of money that medicare is handling right now goes to wall street the the regulations that are restraining wall street from turning into a total flaming casino are done away with and so the bankers on wall street are funding these guys so funny people show i'm fascinated by this because. i don't think during the health care debates when and when dick armey was sending cheap party people in to literally scream and shout down democrats back in here a couple years ago that it even occurred to any democratic strategists that they should plant shills in the audience to his friendly questions about the health care reform surely you know i've talked to him a crack strategist in the last few months and i don't even see any basic organizing . none of that nasty stuff you saw in two thousand i'm not even like telling their members to go. meet him in the town hall that you jus

people in congress for ages have been trying to get the feds books open and in the debate over the dodd frank bill last year there was a sort of a bipartisan coalition with bernie sanders and ron paul and alan grayson and they were kind of fighting just generally to get the the feds books open in the end they weren't able to completely open the fed's accounting but they were able to get a small window of numbers from the fed's activities from the end of two thousand and seven through say the middle of two thousand and nine and this basically covered the entire bailout it was a very limited look at the fed's books but one of the things they were allowed to see was who had received to tell flow and it was really talf the fed's emergency landing so they ended up with this list of twenty one thousand transactions that showed you who received financing through the talf and there are so many crazy news on this list you know i got a call from senator sanders office and he's like dude you have to look at this you won't believe the people who got money from the federal government during the bailouts a

different thing i think the interesting point is that the bill in congress passed last year the dodd frank financial reform act already directed the agency called the commodities futures trading commission to set limits on speculation in the oil market they were supposed to start doing that in january they haven't yet they've been put. down to two thousand and twelve if they were actually doing that goldman sachs has actually estimated that speculation right now is adding about twenty seven dollars a barrel so if the see if you see were simply doing its job and doing what it's allowed to do by law you could actually see gas prices lower than they are today no one ever makes us feel good so something was created they're just not actually doing their job well then what about this new task force that the president says that he's going to appoint i mean how quickly can they start looking into you and investigating this issue not very stable i asked from now on if they haven't yet and it's not going to affect prices in the short term which is is a pressing matter you act absolutely right it hur

dodd-frank could not be implemented because they affect bring profitability.in conclusion, the bill before this committee seeks to render the cfpb of completing the mission congress passed it with. i urge you not to delay. >> thank you. i want to thank all the witnesses. i would like to begin the questions. i would like to pick it off of professor leviton. we heard ms. anderson in the first panel state unequivocally that her customers -- service to our customers is the lifeblood of our institution. she gave us some very good examples of targeted -- she talked about the burmese refugees and other folks that they've been able to target in their own communities. i would dispute that the choice is between banks or families. i would like to get mr. wilcox is a chance to weigh in on the statement. >> thank you. i appreciate that opportunity. i would like to start by suggesting that there is a difference between banks and community banks. my bank is up to hundreds $36 million committee bank. as i noted -- $236 made in committee bank. you will not fight community bank

the ots was abolished by dodd- frank, and for good reasons. chapter 3. these are the credit ratings. i will answer some questions and turn this over to staff. chapter 4 is mainly goldman sachs. chapter 3 is the inflated credit ratings. in the words of our report, on page 5 of the report, inflated credit ratings contributed to the financial crisis by masking the true risk of many mortgage related securities. on page 6, will report at triple a has less than 1% of default. 90% of the aaa ratings given to subprime residential mortgage- backed securities that were rated in 2006 and 2007 were later downgraded to junk. we also say in our report back at the triple a credit ratings were a key cause of the financial crisis. there is an inherent conflict of interest when the issuer pays, when the money coming into the credit rating agency comes from the person who is security is being raided. we point out that the credit rating agencies weakened their standards to keep wall street business. on page 7, they were aware of the problem. they were aware of the high risk

the ots was abolished by dodd-frank, and for goods reasons. chapter three. these are the inflated credit ratings. and i'm just giving you some highlights here, and then i'll turn -- i'll answer some questions and then turn this over to the staff. but i want to save most of the time for chapter four which is mainly goldman. chapter three is the inflated credit ratings. inflated credit ratings in the words of our report on page 5, now, the report and the executive summary: inflated credit ratings contributed to the financial crisis by masking the true risk of many mortgage-related securities. page 6 of the report traditionally aaa has less than 1% likelihood of support. still on page 6, 90% of the aaa ratings given to subprime rmbss that were rated in 2006 and 2007 were later downgraded to junk. and so we also say in our report that inaccurate aaa credit ratings were, quote, a key cause of the financial crisis. there's an inherent conflict of interest, we say, when the issuer pays. in other words, when the money that is coming in to the credit rating agency co

now let the bailouts of the stimulus or even dodd frank where there was arguably a huge financial crisis. had to do something or people thought you had to do something about the banks and financial system. this was a matter of choice on the part of the president of the democrats in congress proposing it was a matter of choice. the could have gone along. they certainly have in the past with plenty of democratic pieces of legislation. so this, in a sense, really tells you more about the governing visions of the two parties and of the two major political philosophies and america than most other issues to. it is unusual in that respect. the president chose to make this his signature priority. they chose to force it through on a party vote even after losing the scott brown election in january of 2010 when they could have easily had an excuse to back off. it's there. it's law. if the president is reelected in 2012 the democrats would keep control of the senate and gained seats in the house. it would be hard to repeal it. if there is a new president or republican president and republicans maint

and with dodd-frank and regulatory reform but to date it's not working.so much of too big to fail depends on perception. perception becomes reality for all the reasons that i just mentioned because of the shareholders, because of the cred creditors. because of the way these markets -- and in some ways of dictating market perception in jan both s&p and moody's rejected dodd-frank and nevertheless these provisions that they're going to continue to give enhanced ratings on the large banks on the assumption that the government will bail them out. that was something historic. before the crisis there was never an explicit added ratings after the government bailout factor. after dodd-frank this year they indicated that's exactly what they will do. spu's more muted language. moody's was more blunt and basically said that they did not believe the dodd-frank provisions and the way it's being executed is going to solve that problem. so for wall street, yes, t.a.r.p. was a success. it saved them and it's put them in a position, frankly, for the big banks to make more