that's not what dodd-frank does. i think it's been discussed already today, but i think it's a little bit to letting the house burn down but not so much with managing the consequences of that. and there's one particular portion of the act that worries us quite a bit and michael got in a slight discussion about it earlier and ken brought it up again and that's really the incentives that are created from the act dealing with who pays for systemic risk. so the way it's sort of written if a bunch of firms fail and those monies can't be recovered from creditors and i don't know how you would recover them from short-term creditors who have already fled, the surviving systematically important financial institutions are going to make up the difference ex post. so what's the problem with this? well, it increases moral hazard because it creates a free rider problem. so that's not good. and it also increases systemic risk. why is that? because prudent firms are going to be charged more so they're going to be less likely to be p

i'm going to make some comments on dodd-frank. these are not on michael who i think has done a terrific job at the treasury and working on some of these very difficult issues. so i have a few concerns about the dodd-frank, but i do think we should all be grateful for the job that michael did. when dodd-frank passed i was pleased an important step forward had been made making the u.s. financial sector saver in particular while placing the fed in charge of monitoring wasn't necessarily my first choice, i thought it was a better thing to have the said monitoring all major financial institutions that it was an improvement over the previous system we had in which aig, bear stearns and others were regulated by institutions that really didn't have the ability to control or recognize the failure of these companies. so i think that is a step forward. i've ended up supporting the consumer protection agency. in my view they should always be resistant to the creation of a new agency, as it is truly necessary and there were and still are conce

i'm going to make some comments on dodd-frank. these are not on michael who i think has done a terrific job at the treasury and working on some of these very difficult issues. so i have a few concerns about the dodd-frank, but i do think we should all be grateful for the job that michael did. when dodd-frank passed i was pleased an important step forward had been made making the u.s. financial sector saver in particular while placing the fed in charge of monitoring wasn't necessarily my first choice, i thought it was a better thing to have the said monitoring all major financial institutions that it was an improvement over the previous system we had in which aig, bear stearns and others were regulated by institutions that really didn't have the ability to control or recognize the failure of these companies. so i think that is a step forward. i've ended up supporting the consumer protection agency. in my view they should always be resistant to the creation of a new agency, as it is truly necessary and there were and still are conce

the dodd-frank action, rules were much more resilient.give you some examples of a large number of rules, money maket funds required to maintain 10% overnight liquidity, 30% 70 liquidity. this liquidity is not dependent on secondary markets which as we saw in 2008 froze but that is contractual either treasury obligations or securities maturing overnight, or within seven days. added a huge amount of liquidity. second, directors of funds are able to redemptions, something the directors and the reserve fund didn't have the authority to do before they break a dollar. this is important. damage to shareholders in the fund but it prevents what we saw in 2008 from a money market fund having problems of dumping in portfolios, securities into the market which begins the panic and affects the prices of all the other money maket funds. or prices our security. but we still have basically the same structure of money maket funds and the same problems that can lead to a run, even though we're more resilient today than we were two or three years ago. the c

then came the crisis followed by dodd-frank. let's be clear.an avalanche of regulation doesn't mean better regulation. the new regulations were piled on to the old ones. will that make the financial system safer? unlikely. it fundamentally weaken the global financial system by encouraging capital flight out of the most stable and liquid markets in the world. in the pile of new regulations, a few good ideas. this effort is getting trumped by 2300 pages of government attempting to micromanage every player in the financial system. the most competitive banking system is one with high capital requirements and few rules on the extension of credit, with it to a consumer or corporate sponsor. is up to us to correct the mistakes and ensure the end result is a financial system built on higher capital, market discipline and common-sense regulation. i yield back. >> miss waters for two minutes. >> thank you. i would like to thank our witnesses for coming today. chairman bair's tenure will come to an end on july 8th. i would imagine this may be your last ti

dodd-frank addresses a lot of issues, and i mean, that's fine. they are interesting, but do you believe that the power existed within the federal agencies, that they could have stopped these bad loans from taking place in the first place without any further legislation? >> oh, definitely think they have the power to maybe not stop them, but certainly raise a standard for making loans, and i mean, that's the essence of bank supervision so the a bank supervisor feels the bank is taking too much risk, not controlling the risk, its job is to go to the bank and say so, and the bank works with the regulator to try to address it. they can do that. on the other hand, congress mapp, we were all on a housing crisis ewe forya. looking back, it's obvious, okay, but at the time if you really believed housing prices were going to keep going up, which almost everybody did, the pressure to raise those standards was not very high, and there would be political pushback in any of them if you tried to lower the standards in a way that deprives people from getting lo

the with dodd-frank -- with dodd-frank, you know, some of this is still being put in place.there are principles that are very good. one of them, for example, is at least dodd-frank embodies the principle of size-based capital requirements. that we've just learned we tend to like to bail out large institutions, so we charge them a larger capital rate. that counterbalances that their cost of capital is subsidized by -- >> so it's a good thing. >> so if i could stop you there. so one of the questions i had of the governor was just that, those sifis that are on the borderline, you know, and whether or not they would be subject to the same capital requirements, the big, big sifis, if you will. and the answer was, no, that there was a gradation there, and it seems to me that you're addressing that. >> in i think sliding scale capital requirements are a really, really good idea. i think that a cliff structure or a binary structure, you get into this argument of i'm on the line. >> right, right. >> and the sad thing about people that are on the line is that when they are setting the

we appreciate the opportunities to provide the implementation of title vii of the dodd-frank act and we commend the committee for his diligent oversight of the new regulatory framework affecting derivatives. nfa is the voice of the internal investment industry and our members help tensions and endowments and other institutional's diversify their investments, manage their investments, and generate reliable returns to meet their obligations to beneficiaries. our members are active participants in the derivatives market. a strong interest in promoting the integrity of the proper functioning of these markets and increase transparency, competition and systemic risk mitigation. nfa recognizes the efforts of the cftc and sec in promulgating regulations called called for under dodd-frank. we believe it is imperative the regulators implement the rules in a straightforward, commonsense and workable manner to assist in these efforts. we provided regulators and we have submitted in connection with their testimony here today a blueprint which contains a detailed plan for adopting and implementing

>> we're not pushing for any repeal of dodd-frank right now. the industry is really -- >> i mean the section. >> 716. you know, we were against it totally during the enactment of the statute. if it disappears, we'd probably be very happy. >> okay. then mr. zubrow, your testimony was -- made a lot of this morning. i would just -- on page two of the testimony you talk about the regulatory pendulum has swung to a point that our risk is hobbling in the financial system and economic growth. you say that u.s. policymakers should focus on how much the regulations they proposed collectively reduce risk taken by financial firms and how this collective impact is likely to result or reduce the economy and job growth. and how many of these regulations have been rejected or referred by other countries. could -- what's putting u.s. firms at a competitive disadvantage? is it -- does fsoc have anything to do with this? is the fact that fsoc numbers are not coordinated or thinking in the global marketplace? i have causing problems. >> madam chairwoman, i think

>> i went to a dodd-frank act and i don't think there is i direct application of dodd-frank to repo reforms. there is an initiative under the auspices of the federal reserve bank of new york, which is an industry initiative, which is working on reforming the way the tri party repo market works. but not directly related to dodd-frank. and the primary objective of the tri party repo market task force is to solve a sort of technical issue that arises in the tri party repo market during the day. in that market there is secure credit overnight between 5:30 p.m. and 8:30 a.m. and intraday between 8:30 a.m. and 5:30 p.m., and expose exposure of cash investors in the tri party repo market and is an unsecured exposure can give incentives to run in try party. so the task force is actively working on solutions to that. one of the factors that was often -- that has often been blamed to of contributed to some of the instabilities in the repo market. >> what you are telling me strikes me as one of the leftover piece of business we have not grappled with. >> yes. >> thank you very much, tobias . i would l

they are just freezing up from his fear of what dodd-frank is turning into. let me just ask you directly. don't you think we over did it here? >> with all respect, i think that the dodd-frank derivatives title was very necessary. a market that is so large does affect the wheat farmer. that wheat farmer in can't is not going to be a swap dealer, not going to have to come into clearing or post margin on a proposed rules. if there's any doubts about the co-ops, we are working with the co-ops. because that's clear. that's congressional intent, but it is lowering risk because that wheat farmer actually lost out. they lost out when the financial system failed in 2008. and by the way, the regulatory system feel. it wasn't just wall street. it was the regular failed, too. and so that's i think is what's necessary. and appropriate. based upon a lot of public input we're going to get the rules finished and balanced. we've given more time here. i think that balance is important. but i think that this was very much appropriate because millions of americans were put at ri

but until we really have implemented dodd-frank and the most important provisions of dodd-frank, i think we would be foolish to suggest that everything is fine. >> so that could take years? so we'll be in limbo for a number years. >> it will take some time in some areas, and rosario was just here to talk about the tremendous task and challenge really of taking a $600 trillion worldwide market, fully globalized, largely unregulated throughout the world but certainly in the united states and turning that into a regulated market with full transparency, reduction of counter-party risk through central clearing and business conduct standards for market participants. and those are going to take some time because we're going from unregulated to regulated and we're not riding on a clean sheet of paper because this market already exists. so there are a lot of challenges ahead. >> let's talk about dodd-frank, as you said you're tasked with writing 100 of the detailed rules that go with the bill. there's been a lot of missed deadlines as a journalist i'm very sensitive to that, missed deadlines and

that's because dodd-frank has a transsexual and they don't. dodd-frank has rules.hey have pension funds to type her retirement money as collateral for trades and they don't. that's a few examples. because of that, they risk capital and jobs fleeing this country and going overseas in. our economy and competitiveness. the overreaching policies that were codified in the dodd-frank encourage other to increase what they do come increase basically regulatory arbitrage to the keynote of the impact of these new regulations may be hard to measure, but that's precisely what they must do. but the total cost of the regulation and jobs and economic growth, which regulations address real problems and which ones simply a cost in this type of economic prospect analysis must be done now because the stakes are just too high to do so otherwise get it from. with that, i. >> 10. mr. meydenbauer. >> i'm putting up a small chair. this is the 50 top firms by market cap. in 2003, the u.s. had 51% of the total capitalization. he moved into 2006 in a draft 35% of total market capital station

. >> she spoke about the dodd-frank financial regulations law in her role as chairman and as she leaves her current position. hull of the national press club, this is 55 minutes. >> [inaudible] to talk to people about and i take the question and the first question was who was number one? [laughter] so tough to impress these days. it was angela merkel if you will were wondering and i did drop 15 this year behind the lady gaga dividing because they are appealing and not as much as others and am i power status. before i would like to begin the speech, i would like to thank some of the staff who are here with me and repeatedly as the chief speechwriter he has done some wonderful work and had a big hand in this speech and i do want to see freedom for this and all of the work he's done. thank you very much. >> and andrew, who many of you know or head of public affairs out here somewhere who is just again with me the whole five years and has done such a fabulous job. thank you all of you out here. and my chief of staff who i drafted. he worked for me during my treasury days and has been at my

ironically dodd-frank is actually made big banks even bigger. five of the largest financial situations in this country are 20% larger than they were before the crisis. now this is not directed at the fdic. rather, many of these things are designed failures in the legislation we passed and i will have some questions about that and how you see that implementation and perhaps some legislative relief on many things you don't think are quite appropriate going forward. even secretary geithner noted the possibility of future bailouts when months ago he stated the federal government might have to do quote exceptional things again and quote. ii know you have been questioned about that before but the moral hazard of such explicit and implicit guarantees cannot be overstated. these concerns along with others that chairman bair and i both have spoken about are critical or are of critical importance to the economic future and well-being of the united states and as citizens. getting that balance right is a struggle, and in terms of capital requirements, we wo

very complicated continuum the excess of trade-offs on the particular policy questions, and the dodd-frank act i think overall moves the spectrum on most of the policy issues addressed more towards rules than it had been, not in a revolutionary way, but in a modest way. in terms of the 1930's issues, i don't think that the glass-stegall act or the gramm-leach-bliley act universal banking issues were central to the crisis or the path of reform i do think that the shadow banking system and innovation are at the core of the financial crisis, and i do think that the dodd-frank act addresses those in a way that provides a framework for being safer in the future. it doesn't guarantee that it provides a framework for addressing the needs of oversight transparency and capital requirements in the shadow banking system that are so critical going forward. last, on the resolution of 40i think people can argue both ways about rather the resolution authority should be pre-from the proposed funded. i actually don't think that that is cementer cool question to the resolution. i think that the question abo

um, that is the key failing in dodd-frank. another failing, i think, is that it has left hundreds of rules to be made by regulators, and so, therefore, providing a second, um, manipulation possibility for the industry. so they got their first chance when they were talking about the legislation, writing the legislation, they got their first chance to manipulate. now they can manipulate the regulators, two bites of the apple. >> is it any better than nothing? >> i think there are parts of it that are fine, that are good, but i think a 3,000-page law, okay? glass-steagall was 32 pages. [laughter] 3,000 pages is, you know, it's way overdone and not, um, not effective on the crucial issue of too big to fail. >> yeah. and not to take much longer on that, i think i agree with gretchen. you know, why couldn't you have just added one paragraph that, essentially, said any institution that has to rely on extraordinary government asset p purchases, debt guarantees or more than 60 days at the window will have its senior management and offi

this bill is a de facto repeal of dodd-frank. what the republican majority can't do up front which is repealing dodd-frank, they are seeking to do by the back door by making sure cftc can't do its job as the cop on the beat. to keep things in perspective, the republicans are taking a meat ax to people's programs to address a $14 trillion debt. yet they are perfectly happy to give wall street traders a $300 trillion unregulated playground. talk about going backwards. cutting the funding for an agency with such important responsibilities is a roll of the dice, and again, the people of america will be the ones who lose. once again i ask, where do we live, on wall street which is where cutting cftc is, or on main street where the rest of us live? i urge my colleagues to vote against the underlying legislation and the defunding of cftc. i yield back the rest of my time. the chair: the gentlewoman yields back. for what purpose does the gentleman from new jersey rise? >> move to strike the last word. the chair: the gentleman is recogniz

ironically, dodd-frank has actually made big banks even bigger. but the largest financial institutions in the country are 20% larger than they were before the crisis. now this is not directed at the fdic. rather, many are designed failures and the legislation we passed. and i will have some questions about that and how you see that implementation and perhaps some legislative relief on the things you don't think are quite appropriate going forward. even secretary guice noted the possibility of the future bailouts when a month ago he stated federal government might have to do, quote exceptional things again. i know you've been questioned about that before but the implicit and explicit guarantees cannot be overstated. the concerns along with others chairman bair and i both have spoken about part of critical importance to the economic future in the wellbeing of the united states and its citizens. getting the balance right is a struggle and in terms of capital requirements, we've like to hear your thoughts on that and i recognize the ranking member mr.

there wasn't required to be disclosed under the dodd-frank act. going forward, the dodd-frank act provides for the release of information on any broad based emergency landing facilities one year after the termination of the facility as well as the gao audit of the facility. the act also provides for the release of information regarding discount lending and open market operations conducted after july 21st, 2010 with a two-year lag. for lending facilities including both emergency landing facilities and the discount window and for open market operations the federal reserve will publish information disclosing the identity of the bar were or counterparty, transaction amount, interest rate or discount and the collateral pledged. the federal reserve believes the lag provided by the dodd-frank act with the release of transaction level information established an important balance between the public interest and information about participation ads and transactions in the federal reserve and the need to ensure the system can effectively use its congressional

i think you want to do exactly the opposite of what dodd-frapping did to limit -- dodd-frank did to limit rather than give them a pass on the star of the private side. i heard chris dodd speak. it is a stunning condemnation of american politics that this man could have been leading the financial reform. he simply does not know enough to do it, period. >> [inaudible] >> i think there were philosophical and pragmatic reasons why hayek was evasive in terms of the details. i think that's the right word to use, and in terms of the philosophical reasons, he recognized that there's lots of different societies that had previously established institutions, and in order to keep it at a general philosophical level, you don't want to offer specific points about, you know, the actual policies. milton friedman always did, and hayek was his counterpart. he found the the society in which there were people who were order liberals from germany, friedman which chicago, and people from all over the spectrum with lots of different visions as to what a free society would look like. he was referring to articula

there wasn't required to be disclosed under the dodd-frank act. going forward, the dodd-frank act provides the release of information on any broadbased emergency lending facility one year after the termination of the facility as well as the gao audit of the facility. the act also provides for the release of information regarding discount window lending and open market operations conducted after july 21st, 2010 with a two-year lag. for lending facilities including but emergency landing facilities and the discount window and for open market operations, the federal reserve will publish information disclosing the identity of the borrower or counterparty, transaction amount of interest rate or discount paid into the collateral pledged. federal reserve believes the lead provided by the act for the release of transaction level information as doubles tannin portion balance between the public interest in formation about the participants in transaction with federal reserve and the need to ensure the system can effectively use its congressional reoffered los

we have a lot concerns about dodd-frank, and hope to correct some of those. i think it's important that this committee here work together to try and monitor the work is done by the cftc, the fed and the sec to make sure that these troubles with the bill, the concerns we have are not compounded. and i'm in particular concerned about the limited definition the cftc is looking to in state for the definition of swap used. there's been some discussion of this already with the first panel with chairman gensler but there's a lot of elevators and local cooperatives were provided information to produce addictive the. including them in the definition of swap is will only raise prices for producers and limit their chances to engage in modified hedging. so, i say that just sort of a preparatory remark, but i'm interested in knowing, i think the press answered by the previous panel, but if you could shed some light on whether you think that farm cooperatives poses systemic risk to our economy, and should they be regulated? >> well, i certainly think that they should be tr

we haven't had it until dodd-frank, but dodd-frank says we can set policies and procedures to protect the safety and soundness of the clearing house. it goes to the safety and soundness of the clearing house. it does not go to trying to affect -- we are not a pricing agency and some people asked about margin regimes in terms of leverage and margin in for what it might do to the market's. dodd-frank was free careful and clear it's just about the safety and soundness of the clearinghouse for safety and soundness of the dealers. and they were just supposed to do the policies and procedures and then they set the individual margins. and we've done that. we propose a rule last december and we are hoping to finalize that role this fall. >> other questions or comments? yes. >> our business is very physical at the basic level. we buy natural gas we burnet and produce electricity, but we also serve a customized physical product and the use financial swaps to head our position. sometimes we have to take both sides of the trade because the market knows our natural position, and if you read the ru

and thinking about dodd-frank that we are on the right road. i'm not sure it shadow banking has been a proper frame. we have an idea of what we expect to happen that is robust. >> i think that when you look at the mechanisms of dodd-frank and see some of the people speaking here today, you are certainly start that they are remarkably thoughtful, intelligent. you know, in some ways deeply patriotic people. some of them have left a far higher paying jobs in the private sector in order to work on this project. it gives you a sense, a good feeling. but ultimately it is one of the failings of dodd-frank and one of the concerns i have. even the overall too big to fail, ultimately whatever work they do is going to depend on the political process. and i think dodd-frank, it politicizes the approach of weather dealing with capital and dealing with the local rule, all of these things that in certain ways, this morning, more rule based approach, being left not just to the discretion of these regulators, but as their a prism of the political pressures and

. >> we haven't talked about dodd frank. we have great apprehensions about dodd frank. >> i do. if you look at the structure of the various diffent, not regulations because remember dodd frank is essentiallan enabling act which has a whole series of positions that they would like to occur and they are requesting of the regulatory agencies to make rulemakings which will implement. >> that is what they are doing. >> that what they are doing now. implicitn that is a coon seembeall framework of the way financial markets behave. in other words, a specific action a cses consequence b. if you are wrong on that, then your regulation will be adverse. and what concerns me is that the underlying conceptual structure of whatodd fra is built upon guess not-- does not conform to the reality i know so that the 200 or so that the federal reserve will have to make and the office 69 controller and f.d.i.c., those rulemakings are having great difficulty being constructed because as you look into trying to make a particular general idea into a rule, as you deal with that sort of stuff, you have, sa

he said aside from increasing the risk, dodd frank -- on taxpayers. so mr. zubrow, i thank you for that. and we have some differences but i think we ought to be clear where they are. it goes on more on too big to fail. i notice that one of the contributory factors you said could be considered, would be an increase in the capital charge to offsets the per received advantage of being too big to fail. i differ with that because i do not think we ought to be reinforcing it rather than charge people for what i believe is an increasingly inaccurate perception. when moody's finally gets it has got to be clear cut. it is an increasing recognition that is not the case. we don't want to charge banks excessively. i would hope you would reconsider that. rather than charge the banks for inaccurate perception, let's dissolve the inaccurate perception and that will drop out. margin requirements my new york colleagues have noted when the nonu.s. subsidiary of a u.s. bank is dealing with a nonu.s. entity -- non-u.s. entity, do you under the statute have the authority to take

i want to close for now with a statement made by the frank in dodd-frank, who this bill is named off. barney frank, who worked with chris dodd to craft this bill in the house and the senate, here's what barney frank says. it today the 8th, by the way? he said it today, the 8th of june. i quote -- and he's speak of the tester-corker-hagan-crapo-bennet amendment, this amendment of i quote. "this is a good, balanced, compromised approach. i support it, and i hope it will pass." the author of this bill from the house thinks this is a good policy change to make dodd-frank better. i yield the floor, mr. president. bthe presiding officer: the senator from delaware is recognized. mr. carper: mr. president, good to be with you again. spent most of the morning with you and now part of afternoon. this is -- this is -- this is -- this is really a difficult issue for a number of us in the senate because we have friends on both sides of this issue. and it's also a difficult issue for a lot of people because we don't want to be unmindful of the concerns raised legitimately by merchants for a number

dodd-frank was a great step forward. >> we are well through that process.ntil we have in place a regime around derivatives and until we have final rules around resolutions and the tools that will be available to the fdic in that context, until we had additional capital requirements in place, where on the path, but i do not think we can say we have necessarily cemented the foundation of the financial system in a way that we all hoped would be the case in the not too distant future when some of these things are done. one of the things i think are better are i do think there is greater sensitivity and corporate management about risk. there has been a bolstering of risk management capability. i think regulators are very much on a point now watching what is the one on and being more inclined to step in and if not pushed companies to use the bully pulpit and persuade with tactics to make changes necessary. those things that are on the periphery are better. we are seeing some improvement in things like composition programs, although not nearly to the extent that w

bill brings in more regulation because the dodd frank bill is a very very very weak bill that doesn't do anything to really really slap the financial system back into place to bring back last you go to break up the too big to fail banks or to take back from them all of the trillions of dollars that was given in subsidies in order to have them float while the rest of the economy is sinking yet the investment banks more so as years go by and have more money and more lobbying power and more influence really pick the side that's going to be more that they will be the most powerful so whether it was the democrat side when obama was running for president and when goldman sachs. it was his number two contributor to his candidacy for him from a corporate perspective or what will be happening in the next election period in two thousand and twelve a loss street will do a cola do is figure out where they think they can put the most money to get back the most influence they don't care whether the person is republican or democrat what they care is who's going to win who's going to be in power and

there are rules and guidelines that conflict of one another or dodd/frank. the problem is that some key aspects of financial regulatory reform are set by international standards bodies and that in order to get agreement within those bodies you have to settle for standards that are inadequate. in other words, you have to settle for half a loaf because many members of the committee's will not go along. i'm going to illustrate my argument by discussing two elements. one is dealing with financial regulatory reform, mainly basel 3, mainly on the capital standards that was announced this weekend. the second is dealing with reform of the international monetary system, mainly what has been done about global payments imbalances. in both cases, and the message is clear. while they oppose a number of stringent capital requirements on companies, it is always recognized since the late 1980's that minimum capital requirements for banks would have to be determined by international agreement. in september 2010, the committee announced the agreement on common equity requirem

criticized financial industry leaders for supporting "short-term policies that would overturn the dodd-frank and has regulatory law." this is about an hour. [applause] >> that was a very nice introduction. i spoke recently to my elementary school daughter's principal. we got to talking about banks and interest rates and all the things they like to ask about. and i asked if they had questions and a little hand went up and said, who is number one? it was angela merkel, in case you were all wondering. and i did drop to 15 this year, behind lady gaga. [laughter] i think because the banks are healing, but not as much as we would like. i would like to thank some of the staff who are with me. rich brown in color to give our, our chief economist. he has been draft -- in to our chiefo give ou economist. he has been drafted as a speechwriter very often. and andrew, who is out here somewhere. he has been with me the whole five years and done a fabulous job. and my chief of staff who has always been by my side. and finally, my husband, who has been with me through everything. on more than one occasion,

it was not required to close under the dodd-frank act. going forward, and the dodd-frank act provides for release of information on any broad-based emergency lending facility one year after termination of the facility as well as the gao audit of the facility. the act also provides for release of information regarding discount window lending an open market operations conducted after july 212010 for the two-year lag. for lending facilities, including both emergency lending facilities in the discount window and for open market operations on the federal reserve will publish information disclosing identity of berber counterparty transaction amount, interest rate or discount paid and collateral pledged. the federal reserve believes flags provided by the dodd-frank act furthers the transaction level information established an important balance to the public's interest in information about participants in transaction with the federal reserve and the need to ensure the system can effectively use its congressionally authorized power to maintain sta

we should repeal the dodd-frank bill which is killing small business. [applause] let me just say that if you are a conservative and i mentioned the phrase dodd-frank build [laughter] and you can't figure out automatically it is probably worth repeating on principle -- [laughter] we should replace the environmental protection agency with a brand new environmental solutions agency that is fundamentally different. [applause] we should modernize the food and drug administration said that it has the job of being in the laboratory cooperating in order to get new science all the way to the patient as rapidly as possible, not as slow as possible. [applause] a 21st century food and drug administration means better health, lower costs, longer lives, greater independence living, and more american jobs. it is a big deal. we should audit the federal reserve and find out who got our money? [applause] we should reform the federal reserve to take away the power to give money to banks and return it to the treasury where it can be inspected and looked at in public becaus

whenever there's a bill of dodd-frank that passes.hat when they arise i would have to this say that i really like the way that this body is functioning around this issue people on bothfunctioning arou sides of the aisle thatnd have havrealiz realized that this policy is one that is detrimental with you on both sides of the ogle that try to work together and we have three iterations now with of corporate taxes to try to get it in a place that is in the middle of the road that takes into account the retailers and takeshe conce into account the concern of the small credit unions small banks around this country that are going to be devastated as all of allhe the regulators have said this is unusual by the way we talk about regulatory overreach in this we've body. this is a case where we have regu given the regulators the abilityse don to regulate, and they are saying please, don't make us do this rarel this is really bad policy. shington that rarely happens inhappenedthis washington but it's happened one. this case. so out of respect for

dodd-frank came to the floor last year. there were a number of amendments to the bill. one of the amendments that came to the floor was called the durbin amendment. it was an amendment that had had no hearings. and a lot of us, people like myself that are opposed to price fixing, what the durbin amendment said was that the fed was going to set prices on debit transactions were opposed to it. on the other hand, there were numbers of people in this chamber that supported durbin because they were frustrated with where retailers were in their inability to negotiate prices with visa and some of the other companies. and so they thought that this might be a type of solution to that dilemma of not being able to have appropriate negotiations. i think what all of us have understood, regardless where they are on this issue now is that the durbin amendment didn't actually give the fed the ability to set prices as it relates to cost on debit cards. it only allowed certain costs. in other words, the incremental cost of a transaction. and i think the retailers that i know are very str

but until we really have implemented dodd-frank and the most important provisions of dodd-frank, i thinkwould be foolish to suggest that everything's fine. >> so that could take years. we would be in limbo for another bumper of years. >> would take time in some areas, and i know guerrera just talked about the tremendous task and challenge of taking a 600 trillion-dollar worldwide markets fully globalized, largely unregulated throughout the world certainly in the united states, and turning that into a regulated market with full transparency, reduction of counterparty risks and central clearing and business conduct for market participants. and those are going to take some time because we are going from unregulated to regulate it and we are not riding on a clean sheet of paper because the market already excess. so there's a lot of challenges ahead. >> the stock about dodd-frank. you said hundreds of the rules that go with it.

act, and that's what is at the heart, i believe, of the dodd-frank proposal overall, which is to provide better information, more transparency, whether it be credit card or debit cards or it be complicated derivatives, because armed with better information, individual consumers and individual merchants can make better choices about economic decisions that will accrue to the benefit of all of us. and with that, madam president, i would yield the floor. a senator: madam chairman? the presiding officer: the senator from montana. mr. tester: i want to thank senator reed for his comments. he is one of the senators on the banking committee. i appreciate his comments. i do want to set the record straight on a couple of things. it's not a 12-month delay and a six-month study. it's a six-month study and then implementation of the rules. said senator said that chairman bernanke had plenty of information. the problem is he doesn't have much information from community banks and credit unions, and that is what this amendment is about. the exemption that is in the amendment that we passed last year ca

experts say investors are nervous because banks are still in limbo as the dodd-frank banking reform bill gets sorted out. and then there's greece and what debt defaults there could mean for the global banking sector. and if that's not enough, analyst erik oja says there's the u.s. economy and its recent soft patch. >> it's a question of is it a temporary downturn caused by the japanese events, or is it something worse, a housing- related double-dip recession? >> reporter: many of the problems facing financials will not be solved any time soon. but the question now is whether the stocks are cheap enough to consider buying. analysts say that depends on what size we're talking about. some experts say large banks are still too risky. >> regulatory reform will be much more harsh on them in terms of capital requirements and the stripping away of their most profitable lines of business. >> reporter: oja, however, likes regional banks because he says many are well capitalized and have already dumped their bad loans. analyst craig siegenthaler is also keen on regional banks, because they're almos

washington in fact so aggressive that these rules on margins and the way he's implementing the dodd frank reform law risks hurting american business. what do you say to that complaint? >> i say that transparent markets and well regulated markets benefit the american public and businesses and ultimately help promote jobs. the financial system fails america and the regulatory system failed. but what we know from prior failures out of the depression that well regulated markets help promote the economy. and this market, this swaps market that was so much a part of the crisis and all we need say is aig needs to have some oversight. needs a cop on the beat. needs transparency where people can see where the markets are. i think what we're doing here actually helps business and america. >> one other thing that happened during the financial crisis is we found out some of the derifd derivatives were customize and difficult to read and they were trying to make it more open and standardized and put it on exchanges. can you do that with those kinds of very customized derivatives and if you try to push

it is as simple as that.ow i want to close for now with a by statement made by the franc in dodd-frank to this bill is named after.th barney frank, who worked withthe hous and chris dodd, to craft this bill in house and the senate, here's what barney frank says. is today the eighth by the way? 8 he said it today. the eighth of june. and i quote speaking of the tester corker crapo bennett amendment, this amendment, i quote, this is a good balanced compromise approach. i support this and i hope will the pass. the author of this bill from the po house thinks this is a goododd-fran policy change to make dodd-frank better. and i yield the floor mr. president.elaware i >> the senator from delaware is mr. preside nt recognized.od t >> it's good to be with you morni again. spent most of the morning withthis you and part of the afternoon. is this-- is really a difficult issue for a number of us in the senate si because dewe have friends on both sides of this issue, and it'sf also a difficult issue for a lot b of people because we don't want to be unmindful of the concernsely raised legitimately

i do not support the dodd-frank bill. what is th is, a lot of it is just an overreach, more government, telling people how to do, conduct their business. do i think there's a role for cftc? i do. can cftc be effective? yes. but when their own democrat member says, and i quote again, the cftc staff, not his personal opinion, but the cftc staff which is over 700, has been unable to find any reliable economic analysis to support the contention that too much speculation has affected the market. that's not my opinion, that's what the democrat member says the cftc staff has reported. should we be concerned about speculation? yes, we should. but i don't think it's fair for any member of congress to go back home to the taxpayers and say, i'm going to bring down the price at the pump because i have put millions of dollars into a washington bureaucracy and they are really going to get tough on the wall street crowd now. if we want to bring down the price of energy in america, we have to increase our supply and i don't know of any o

the congress this year, next week, ought to repeal the dodd/frank bill and the sarbanes-oxley bill and create jobs now for those 14 million americans, this is a depression now. >> so the speaker just said congresswoman repeal dodd/frank. answer the american who said i don't like the details but after what happened in 2007 and 2008, i don't want wall street to not have somebody looking at them and watching what they're doing. >> i introduced the repeal bill to repeal dodd/frank because it's an over the top bill that will lead to more job loss rather than job creation. before i fully answer that i want to make an announcement for you john on cnn tonight. i filed today, my paperwork to seek the office of the presidency of the united states today. and i'll very soon be making minor malannouncement so i wanted you to be the first to know. >> appreciate that. >> if you're out there and don't get the distinction coming into the night, congressman bachmann had explored i'm sure they welcome you. let's continue the conversation. i want to come to congressman paul. you're all here saying preside