as we will hear, dodd-frank has failed to end bailouts and lift the economy. dodd-frank puts regulators ahead of taxpayers and consumers. no one believes the economy is safe from bubbles and bailouts. four years of dodd-frank left lending more expensive and loans harded to come by for consume. one perfect example of blocked laws is the transparency act that requires them to declare new restrictions on lending in a slightly more transparent way. today i am looking forward to real world relenders, not regulators, to explain how this is impacting real people. >> we will turn to our witnesses. first we welcome dale wilson, chairman, president and ceo of the first state bank of san diego, texas. anthony karfang, a firm that counsels business on treasurey management strategy, and i welcome back chairman frank. i have not had an opportunity to shake your hand and we will remedy that after the hearing. i welcome him back because number one i want to met the ranking member called him as the democratic witness and i have a vested interest to make show you are treated wel

although it wasn't advertised dodd franadvertised dodd/frank would live the plight, it has hurd low and moderate income people. what i have seen is that analysis of credit cost for those people pre and post-dodd/frank. credit cards are now on average 224 basis points. that's over 2 percentage points greater on residential mortgages, jumbo, 45 points -- basis points greater, conforming 14 points greater. small unrated corporate debt, 41 basis points. here's an interesting one. auto. auto financing. 17 basis points less. well, isn't that interesting since auto dealers were exempt from dodd/frank's cfpb. we also know the fed has shown their study on qm once fully implemented without exempting the 95% of mortgages handled by the gses. one-third of blacks and hispanics will not be able to obtan a mortgage due to dti. i'm still waiting to see the outrage on the other side of the aisle. only half of today's mortgage originations will meet qm. before dodd franck, 76% of banks offered free checking. now only 39%. and it continues to drop. there's also been a 21% surge in checking fees post-dodd/

the dodd/frank act has not made the american consumer safer, and it has failed to end too big to fail. as we celebrate the dodd/frank birthday, i think the american people realize there's not much to celebrate. i yield back. >> time of the gentleman is expired. chair recognizes the gentleman from connecticut, mr. himes, for two minutes. >> thank you, mr. chairman. and i, too, welcome the panel and especially our former chairman and my friend barney frank. it's a real pleasure to have you back here. i want to make an observation about the 80-page reflection that the majority produced on dodd/frank. i read it closely and carefully and what is most interesting to me about that, and this opportunity on the fourth year an verse of the passage of dodd/frank, what's most interesting is the dog that didn't bark. it has for four years, of course, been the practice of the other side to abide by the idea that if you don't have something nasty to say, say nothing at all. and the 80 pages on this fourth anniversary are related exclusively to title one and title two, two titles of a 16 title bill.

dodd-frank. what kind of impact do you think that has moving forward? >> well, the regulatory burden of dodd-frank has been significant. i think just a week or two ago, it was reported that, you know, jp morgan was laying off thousands of people but hiring thousands of compliance staff. so something like 7,000. so compliance staff, you know, that's to meet the regulatory burdens of dodd-frank. in terms of community banks, there is a lot of evidence. there is a mercata study that i cited in testimony in march that showed this study -- mercadis? >> i think i've run out of time here. thank you. >> the chair now recognizes the gentlelady from new york. >> chairman frank, we seem to hear a lot from the other side of the aisle on this committee about how dodd-frank's resolution authority for large financial institutions somehow enshrines -- quote, enshrines bailouts, end quote. because the fdic would use money borrowed from treasury to facilitate a wind-down if you needed it. i remember when the financial reform bill was in this committee, it was the democrats

dodd-frank. and so that's where that pendulum has swung that concerns me are people who are not of the highest income but now can't get loans because of dodd-frank. and so i know i had the privilege of doing this from my hometown in wisconsin, but i think the jury has come back and dodd-frank has not ended too big to fail. we had a larger institution that were kept in the crisis and new rules and regulations have now come out and those rules and regulations where the intent was to stay with larger banks have now come down for community banks and credit unions, making it more difficult for community banks and credit unions make loans across main street america. so if you are a large institution and you look at the regulatory regime, you would've said this is fantastic because i have an economy of scale and i can deal with the rules and regulations far better than my small competitors. these rules benefit me because now i have a competitive advantage and it helps the large institutions and this is what i hear from my smaller banks in my community banks all across with thompson. it's making it harder fo

studies conclude there is not the funding advantage and the administration is making the case that dodd-frank has dealt with a lot of these issues. conclude more needs to be done, they are prepared to do that but at this point, they are satisfied dodd-frank for the moment has addressed this issue satisfactorily. this debate is unlikely to end anytime soon. but that is unlikely to end, certainly with this report. interest on the part of wall street and members of congress. it's an unlikely bipartisan duo -- david bitter and sherrod brown will stop it suggest this is a different kind of issue. but thank you so much. coming up, ingres said for recess and we will look at what's likely to be on the agenda when lawmakers return from a five-week summer break. stay with us. "bottom line" on this last day of july continues in a moment. ♪ >> congress wraps up legislation today before embarking on its five week summer break. kim wallace is an executive managing director nominated by president obama in 2009 and served as treasury assistant secretary for legislative affairs until october of 2011. >> happy too

dodd-frank. we want to hear from you. what do you think about it. has it been more after help or a hindrance in our economic recovery? we have frank keating on to talk about exactly that, coming up later in the hour. tweet us what you think, @fbnatb your answers coming up. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade. david: netflix really taking off after reporting moments ago. liz: nicole petallides on floor of new york stock exchange. >> it is exciting to look at netflix in after-hours. name we watched closely. big news here. and it is trading higher, up about 8, $9 in the after-hours as they came out with earnings and revenue pretty much

testimony today and the specially that of congressman frank and has illustrated there's some lingering problems with the implementation of the dodd frank act. even the rules that have yet to be promulgated creating a greater uncertainty in the environment and i wonder what the recovery would have been like if there were more certainty in the markets. it seems like the affordable care act also known as obama care and dodd frank have created serious problems and may not have been totally thought out. in my district, of course, we have community banks, mr. wilson empathize with you that no longer do residential mortgages. credit unions are in the same arena. businesses feel there's a regulatory environment and when you couple that with operation choke point that's now saying you have a reputational risk and the do jaechlt says you will or will not do business with certain people it created a very unhealthy environment for the flow of commerce and i'm reminded that i think the fastest-growing occupation in the country now is compliance officer which does nothing to the bottom line of our financial institutions and does more egregious

. >> goldman sachs is dealing with regulation and a third of dodds frank has been written in there. the big banks would like to follow the rules, we're not sure what the rules are. >> and citigroup got fined with $5.7 million. >> isn't it a little apples for oranges there, wouldn't you say? >> not at all. they're both large financial models, not at all. >> are you saying because of the investment banking business? >> you have a lot more of the investment banking business going on, a lot of the revenue streams going on for that. >> look at jpmorgan. the jpmorgan business has been growing as far as branches and retail clients and it's been a big growth. >> goldman sachs doesn't have a huge retail business. >> except for the private wealth management group. >> exactly. got to switch gears, we should keep talking about the banks, but because we're obsessed in new york city from getting from one place to another, big apple says no to ride share app lyft. lyft is facing regulation hurtles where uber did not. how they're breaking down the policy of misfortune next. want to know how hard it

and sharron, thank you for joining us, glad to get a good view of what exactly dodd/frank has done fourears later. >> anyone going to the gas station to fill up a car knows that gas prices have been rising this summer, and that's attributed to a slight rise last month, everything from haircuts to electricity, rose 3/10 of a percent in june as opposed to may, and gasoline accounted for most of that gain. the grocery bill has been going up as the drought out west pushes prices higher, and inflation is very low, but for most people's lives, you can't take away gas and food. >>> though you're paying slightly higher prices for gas and food, your incomes are not keeping up and that's an issue we talked about extensively on the show. flat in may and june, and average incomes were flat from the 1970s to before the recession started in 1970, and in 2012, the top 10 perfection of earners took half of all of america's income. the wage gap is getting wider across the globe. but the best solutions are not on a global scale, their good. local. it's the cities best equipped to solve the problems. it's

do you read that as more rules coming, even though 50% of dodd frank has not been implemented yet?ll, it makes me very nervous. i cringed when it heard the president talk about, you know, more oversight over the banks because there is a dysfunction in the banking system right now, mar marie. you know what it is. banks aren't lending money. that's one of the reasons the economy just hasn't been growing nearly as fast as we would like. and if the president -- he was vague about what exactly he was talking about. but if he's talking about more regulations on the banks,ink it contraction of the credit market and that will cause more of a restreet in the economy. >> if you have to hold more and more money in reserve, then of course you're not going to use that money to lend it. >> correct. also the irony is the president said profit was motivating these banks too much. i had never known that there was another motivation to capitalism and banks. look, the pivot is classic. this is what we've seen from this president. his numbers are as low as they've been, hovering in the low 40s. people

done a lot of work on that, but at the end of the day, dodd-frank hasbig banks have gotten bigger. the small banks have gotten fewer. the taxpayers have gotten poorer, and our economy is less robust. i mean, the answer of dodd-frank kind of, through the arrogance and hubris, that it meets incomprehensive complexity with incomprehensible kplesty and low and middle income americans become collateral damage. they have fewer choices. they're sees products they used to take for granted, like -- now disappearing. >> chairman, we're out of time. next time i want to talk about inversions. thank you. i know you're busy. thank you for taking the time this morning. sara and carl, back to you. >> thank you, rick santelli. trying to keep apprised of the situation regarding this passenger jet, malaysian airliner, that was, crashed near the ukraine border. boeing stock is down, but not out of sync with the general tone of the market. now getting news, response from boeing headquarters saying, "we are aware of media reports and are gathering more information." there's

what dodd-frank has done to not only rural america but to urban america, suburban america has tied the hands remarkably in ways that many people don't even understand. they just know that things are not getting better and when they go to their bank and la grange indiana and all of a sudden they can't get along when before they were able to, paid their bills, always made sure their credit was solid, they are trying to figure out what has happened. and i would like to touch a little bit on the folder rule and what does that do? how do i explain to people back home the effects of the volcker rule and mr. carfang there were study done by oliver weinman this is the impact of the volcker rule will be similar to the financial crisis which disrupted the quiddity and credit availability. can you describe how the volcker rule, what impact it will have fun the quiddity availability? will be a positive or negative effect? >> the volcker rule will reduce the amount of proprietary training so that the depositors are protected. what you have then is less liquid markets so there is less trading and se

we see gdp has grown slower and one reason is dodd-frank. only half it yet has been put into place. why does it take so long to do that. >> because it is a very long, complicated bill. and we should be always wary of long, complicated bills. it is very random, some of the provisions. consumer financial protection bureau for example. with dodd-frank, the government has power to take over any company that it thinks might fail, not just a financial institution. it could say any large company poses systemic risk to the economy and therefore can get taken over. that is vast intrusion of the government in business's lives. gerri: a vast intrusion but i wonder if they ever really do it? look, promises of dodd-frank would keep us from wall street. we'll go in and shut down, jpmorgan, and go in and shut down goldman sachs if they present a risk to the system. that will never happen, right? >> it gives them power to harass the enemies and be nice to the friend. i think that is very dangerous. giving regulators that much power i think is harmful to the

since dodd frank, stock market has increased 10,500 points. 10 million jobs have been gained. and housing prices have rebounded. now, whether there is a direct cause and effect, i don't know. but it certainly the economy has improved dramatically since before its passage. now, mr. kubiac, i'll mention a few things because i disagree with your basic premise that the primary goal of dodd frank was too big to fail. and having sat on the front lines of this thing, i know we were dealing with credit rating agencies, derivatives, mortgage lenders with their no-docs, no-down, mortgage servicing, appraisals, foreclosures, learninged generally across the system. disclosures, ponzi schemes. hedge funds, swaps, stay on pay, exclusives basing, pumping up their stock prices when it wasn't deserved. credit cards, transparency, money markets, the security investor, protection corporation, whistle blower, securitization, accounting standards and the cfpb. each of those was an important goal and is found in dodd frank. you describe it as the primary goal. i disagree with you. that wasn't. we h

the controversial dodd/frank act making its fourth anniversary and it has yet to be fully implementeder senator chris dodd and former congressman barney frank tell us what they say is working and what isn't working with the law bearing their names. that's just ahead. >>> and then after the bell tonight, we've got netflix out with results. less than an hour from now. apple out after tomorrow's close. we'll tell you the numbers. watch for the debate, if apple is a buy at these levels right now. that should be very interesting coming up. stay tuned. uncer ] there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪ let's close the gap between people and care. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking co

they say dodd frank has failed to end the prospect of government bailouts of big financial firmses aer ba s a e negotiation they are too big to fail. >>> and we are seeing consent in the european markets filtering in. right now the s&p 500 is down by 4.5 points and the dow jones is 35 points lower and the nasdaq is five points lower. we'll be talking ukraine and russia after the break. stay with us. developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business. >>> welcome back to "worldwide exchange." violence in ukraine is now an international matter. the u.n. is calling for a cease-fire in gaza and markets get ready more than a quarter at the s&p report this week. >>> if you're just tuning in, thank you for joining us on "worldwide exchange." a look at how futures are trading ahead of the o

dodd-frank has been the wrong remedy.adding incomprehensible complexity to the incomprehensible complexity. gringott lake in washington and i say frequently, regrettably it is the rule as well is the exception laws are always evaluating either advertise benefits, not by their actual benefits are actual costs. this time dodd-frank was passed we were told it would quote increase financial stability and increase investment and entrepreneurship. instead what have we learned? we have learned it is now official that we are in the slowest weakest recovery in the history of the nation. tens of millions of our countrymen now are unemployed or underemployed. negative economic growth in the last quarter, business startups at a 20 year low, one out of seven depending upon food stam stamps. again increasing entrepreneurship, i don't think so. ending too big to fail? we have had this debate before. we had it yesterday, we had today and we will have it tomorrow. dodd-frank codified it too fell into law. it's demonstrable four years late

them aware has dodd frank succeeded and failed? it wasowing the collapse not unexpected to see a significant reform law. sometimes bad facts make bad law. there are some things in that law. for example, to say that no institution is too big to fail, to provide a mechanism that that is the case, though that is arguable with some of my republican friends, to provide for a resolution mechanism to require that nonbanks be regulated. that is important. and obviously to have different types and stronger types. that is certainly healthy for the financial services sectors. things have worked well. the argument will continue to rage. there isn't enough oversight. also the mortgage process you , it isard your report on very difficult and time-consuming to get a mortgage. >> are the banks out of the risk business now with the regulatory environment? >> my twin brother was a banker. to redo our kitchen. i need to borrow $5,000. he said put a $5,000 cd in the bank and we will do the deal. we can all have a good laugh over that. i think two regi

dodd-frank has addressed many of these issues and restored safety and security in the marketplace. it has increased oversight over the financial sector in order to protect those on main street from abuses on wall street. this is not the time or place to change that landmark legislation. any attempt to do so would create greater uncertainty in the marketplace and among many americans including retirees who depend upon our federal regulators to protect them. we should not undermine the much-needed reforms of dodd frank, let alone in an appropriations bill. this is yet another example of the other side attempting to add legislative riders to must-pass legislation that they could not pass through the regular legislative process. i oppose the amendment. and i urge my colleagues to do the same. and i would remind everyone that we continue to find ways to try to undo either the affordable care act or obamacare that was already law and approved by the supreme court or dodd-frank, which is the law of the land and the sad part of it all is we seem to have short memories and seem to forget th

like so many of the things we are talking about this morning, dodd frank has done some very good things. these toxic mortgages that were sold to people, where the person who sold the mortgage knew that the family had no chance of ever repaying -- that is a thing of the past. derivatives, which were a massive market, are now regulated. that's a good thing. of course, no law is perfect. hopefully the criticisms will get outed today. hopefully it is not all about the politics, hopefully it is also about the substance. wall street, of course, the words you want to use when you want to scare people, appropriately so, wall street went out of control in 2008, but we need to remember that the balance is important. yes, make sure the catastrophe of 2008 never happens again. on the other hand, you know, banks are what allow us to borrow to send our kids to school, to borrow to start a small business. we need to make sure that that stays vibrant. we will be covering that hearing, by the way. go to c-span.org or coverage. shelbyville, tennessee, republican caller. caller: how are you? guest: hi, ju

for our mortgage finance system and although the government's response to that crisis, the dodd-frank -- this has not addressed the moral hazards in our system. and many on capitol hill believe without government guarantees the housing market cannot properly function and there are several interest groups who you have seen around here who do not dissuade congress from that grow. but a private housing market can work just fine without government backing and government guarantees do not eliminate risk. they transfer trillions of dollars worth of risk to the taxpayer who are on the hook in case there is need for another potential huge bailout. and so to discussing how we got to this point and what reform should look like we have two distinguished scholars with us today. first up, kevin villani. a of university financial associates. he was vice chairman of imperial credit commercial corporation and served at freddie mac and chief financial office and deppsy assistant secretary at the department of housing and urban development. second we'll have mark calabria. prior to joining cato in 2009 he spent si

the statute of limitations has kind of run out. the dodd/frank legislation tries to extend it. but anybody who brings a case is going to then, of course, face a whole other legal challenge. just on the fact of whether they can actually bring the case or not. >> so citibank, the other big banks, wall street, five or six years. okay. >> five or six years. >> we've had dodd/frank, all these incremental settlements here and there. right now has wall street, have the big banks, has citibank changed in any fundamental way we can feel good about versus five, six years ago? >> the answer is yes. if you asked me two, three years ago i would have said no. i think wall street has changed. citigroup looks like a very different firm than it did then. there is less risk being taken in the firm than before. having said that, there are other risks now building up in the system. in other places, frankly, that aren't regular lated. will we have another crisis? of course we'll have another crisis. will it be a banking crisis? maybe not. >> the rearview mirror problem. looking at the last thing an

>> no. >> do you think that dodd frank is appropriate in terms of what the market has changed so far? >> now, mr. royce. >> chair yellen, how are you? >> i'm good. >> glad you're with us. i want to go back to the question of the unsustainable path, as you mentioned, of entitlement spending. we've known about it for decades. there's a new report that just came out that releases new numbers. the long term debt will equal 100% of the economy in the coming years. this is a critical issue facing the country. i talked to ben bernanke, and asked, isn't there a way to ring the bell a little bit louder? >> well, i believe this is a critical problem that congress should try to address and the administration. it's one we've known about for decades. there's nothing fundamentally new here. we've just come closer to the problem without taking the necessary steps. i think it relates to trends in health care costs. combined with an ageing population. that is certainly not news. there are many, you know, organizations that have been trying to explain to the american people how serious this problem is.

. >> since our report first aired, congress has passed the dodd-frank act.ation passed in 2010 aimed to overhaul many of the wall street practices that caused the financial collapse. as part of the dodd-frank bill, the s.e.c. and the commodities futures trading commission imposed new regulations on companies that deal extensively in derivative products. as a result of that action, credit default swaps now clear through exchanges or clearing houses, but they're still exempt from insurance regulatory oversight. [ticking] coming up, the harsh reality of state finances. the state's a deadbeat. >> yeah, i mean, the state of illinois is known as a deadbeat state. you know, this is a reputation that has taken us years to earn, and we've reached, you know, the heights of, i think, becoming the worst in the country. >> it's the day of reckoning when 60 minutes on cnbc returns. when you're awake and can't sleep an ounce, unwind with tide, downy, and bounce. the sweet dreams collection is so relaxing, so you can tuck in and turn off after a day oh so taxing. tide, down

. >> and it's fair to say that your role has expanded traditionally. and with dodd-frank, you've had an increased role, correct? >> yes. >> and is it almost fair to say there's an almost unwritten third mandate to protect the country from systemic risk? >> i think that's fair to say. but for the federal reserve, it doesn't necessarily apply to monetary policy. >> and talking about that. you have to monetary policy side. and you also have the regulatory side. and on the good government side for us, we get concerned not about the blackout period during the foc meetings. we get concerned in congress when you take that blockout period when we talk about the regulatory side. you use the argument for that -- >> we have no blackout period that applies to anything other than monetary policy and the economy. with respect to supervision and regulation, there is no blackout period. it's conceivable that you asked someone to testify, i don't know what specifically you have in mind here. but a blackout period does not apply to supervision and regulation. >> we had a december 2012 meet

has this report. >> reporter: created in response to the financial collapse of 2008, the dodd-frank wall street reformmer protection act became the law of the land in 2010 [ applause ] >> reporter: among the reforms was the creation of the consumer protection financial bureau, tasked with protecting consumers from predator lenders. and also checked risky behavior in the financial industry. and dodd-frank also instituted the vogel rule. but four years after the passage of dodd-frank, reviews of the effectiveness of the law have been mixed. according to a new national poll majority of americans still don't trust the financial industry. . . . >> it's interesting, i don't think the american people see the financial reform law as a failure. i think that they see that the implementation of the law so far has not been enough, and not effective enough. >> reporter: six years after the worst financial collapse in modern history, and four years after the passage of dodd-frank, americans still remain deeply troubled about the course of reforms on wall street. >>> today republicans on the house financial services

style has been cramped by dodd-frank so part of it is a response, survival instinct in banks and indoorders in the banks and this is the rigging of the stock market, the same thing playing out in the stock market. that is why it is happening. because technology has reduced the use full played by wall street to eliminate it in some markets and they found out what to do and one thing to do is rigged markets. >> on that note. [applause] >> thank you very much, thank you. give a round of applause, thank you. so the bookstore has some free signed books for those who don't want to stick around. for those who are going to have your book signed we will bring you up by row, bring a table out here, give us a couple minutes to get organized. thank you for coming. if you have any questions visit our web site, myfoxl a.org. barnes and noble is on the patio. they have some free signed malcolm gladwell books for sale. only michael lewis will be signing books up here, though. thank you. [inaudible conversations] .. >> tweet us your feed baeck, twitter.com/booktv. i think it's worse now than it ever has

dodd frank, the affordable care act, minimum wage, deficit taxes, they can continue to plumb their agenda which is an anti-government agenda. for example, corporate profitability over the last few years has the highest it e' been on record. the story that obama is somehow unfair to business doesn't fit the theme of dodd frank doing the things you played in the tape. if they can get everyone to believe the aca, dodd frank, et cetera, are having these factually incorrect effects they say, then they can push back on implementation. they have already grid locked the process. that's what it's all about. >> there is good news about states that raised the minimum wage. the fact is they are seeing job grow growth. first look at state where is the minimum wage hasn't been raised. now look at the states that raised the min mudge wage. their job growth is higher than the other states. let me ask you this. the gop says increasing the minimum wage will kill jobs. >> if you increase the minimum wage you will continue to see employment growth particularly if the increases are in the moderate range that the states have undertaken which happens to be the same as the president's proposal to increase the m

dodd frank got just 60 5000 comments. we are talking about a flood. >> how has this turned into such a mainstream issue?a lot of credit can go to comedian john oliver. on his show in early june, he issued a call to arms for internet commenters everywhere. >> this may be the moment you have spent your whole life training for. you have been out there for roche is lee commenting on dog ferociously commenting on dog videos and baby videos, saying things like every child could dance like this lulu's or after one week of practice. loser after one week of practice. to tell you, we went through hundreds of these comments, and in the samples we looked at, all of them were against the proposal. we do know at&t and comcast did file comments in support, but the vast, vast majority were opposing the plan to allow some internet lanes to be faster. >> there were some good ones, weren't there? >> they were very wide ranging. some people talked about how it would hurt small businesses and startups. some people gave shout outs to john oliver. this woman predicted a very dire future if this proposal goes forward. she said

has been muted by washington, d.c., it has been muted by vastly expanded regulations, it has been muted dodd-frank, the affordable care act, environmental laws. washington has muted our economy. the tax code was done 60 years ago and at that time it was competitive with the rest of the world, with the rest of the world has left us behind. we have the highest corporate tax rate in the world, we have these things called inversions come which are simply fancy words for taking more megan jobs overseas. -- american jobs overseas. the president says that these jobs are not patriotic, which is just nonsense postop if you have a choice of whether you pay a versus 40%, you have no obligation to pay a 40% tax rate if you're acting within the law. it is like if you are going to you cano a street, decide you will live on this side of the street and paid $200 a year and decide pay $100 a year. what are you going to do? we are in a global environment. rhetoric is not going to change that. people are going to go where they can compete most effectively. if these companies don't do that, they will lose in the worl

and style has been cramped by dodd-frank.ponse -- part of it is a response to, it's a survival instinct, i think, in banks and the individual predators in the banks. and be this is the rigging of the stock market, it's the same thing playing out in the stock market. so i new, and i think that's why it's happened. i think, basically, technology highways ru dossed -- reduced the natural role, the useful role played by wall street historically. and eliminated it in some markets. and they've got to find other things to do, and one of the things you do is you rig markets. [laughter] >> on that note -- [applause] >> thank you very much. thank you, michael. thank you, malcolm. give them a round of applause. thank you. [applause] >> so the bookstore has some presigned books for those who don't want to stick around. for those of you who are going to have your book signed, we're going to bring you up by row. we're just going to bring a table out here, just give us a couple minutes to get organized. thank you for coming. if you have any

has to be smart regulation. the bottom line is these high-frequency traders are part of the market, they create highly frequent liquidity. if you look at the dodd-frank wall street reform and consumer protection act, not one place in there are high-frequency traders even mentioned. so there has to be some basic regulation, increase investor confidence. i have been talking about this for years and years, i'm really pleased his hearings are going on at capitol hill. i think that is good not just the market. melissa: anytime we get congress involved, investors get a little nervous, do you think congress has the full understanding of what high-frequency trading is and its impact on liquidity which sparked the defensive high-frequency trading this morning. >> it is so complicated i doubt congress is going to pass any legislation at this point goo. they will let the regulators, sec take a crack at it, and they have the power right now to make those reforms and have already announced they are looking at reforms. cheryl: it entrenched in the financial markets, and then you say this is a good thing and bring security to the market, but you yourself i remember

other regulatory agencies in 2011 issued a joint proposal under the dodd frank law to take action to restrict these. since then, it has been wishing on the back burner of the sec. is there an effort to group -- to push the sec to do something on this proposal? >> at think i mentioned earlier that the president did not have any specific regulation or law in mind when he made those comments. what he was referring to was the need for his administration an independent regulators to continue to be vigilant about threats that may emerge in our financial system. we have a rapidly evolving financial system and we need to make sure we have a regulatory regime that can meet the risks and challenges that are posed by the dynamic system. >> is he satisfied with what has been done so far? >> actually, the president is proud of all the progress that we've made. but is he set us -- >> is he satisfied that it is enough? is he satisfied with the amount of progress that there has been so far? >> it is important -- and i don't think i understood it. it is important to recognize that the passage of wall street reform in this first couple

dodd frank, and some of the epa mandates. about energy independence, building the keystone byline -- keystone pipeline. i am very proud of the fair tax author jon lender has endorsed my candidacy, along with rob woodall. we are fighting to get tax simplification done because we know it will stimulate the economy and be good for georgia jobs. i have also been a great champion of the military in the state of georgia. ira present to of our eight military installations. the economic impact is $20 million. thehe point is to create -- point is to fight and win wars and i have been a solid advocate for georgia's military. >> you also have 60 seconds. >> first of all the six-point plan in 2014, every tenant in that plan is the same as it was in 2000 six. not one of those tenants got accomplished. tummy tuck t about economic growth. it requires several things. you have to have an educated workforce. we have colleges underutilized. we have to get them going. we have to get an energy policy. anwaited for years to get all-inclusive energy policy. we have a boom to drive this economy forward. congress is not focused on the priorities right now. if you look at the regu

dodd-frank. you can make the the case that the president is doing a great job. president obama hashe wars exactly the way he said he was going to do it on the the campaign trail. he's passed the the affordable care act and now he has the economy, look out, the economy's booming. but i can't let this one go by again. there's one other thing the republicans told us for years. for years they told us, you can't raise taxes on the job creators. oh, really? the bush tax cuts which we extended in 2010 which we should have never done because there were a lot of democrats out there who were arc trade that the economy would buckle because they were listening to the propaganda, when the president campaigned in 2012 and so did the democrats that the bush tax cuts would expire and we would go back to the old rates of clinton, all mitch mcconnell did was run around kentucky and around the country telling us this was going to kill jobs, that we were going tax the job creator, that obamacare would kill the economy. none of that has come true. you can get back and expect more from the top 1% and 2%

you know, one of theal toos congress has given the fed to combat too big ta to 0 fail is section 165 of dodd-frankthis is the section that requires large financial institutions to submit plans each year describing thousae ii could be liquided in a rapid and orderly fashion without bringing down the entire economy or needing a taxpayer bailout. now the fed and fdic must review these plans, and if they don't buy that the plan would actually result in the rapid and orderly liquidation of the company, then they must order the company to submit a new plan, and here's the key part. as part of the order to submit a new plan, the fed and the fundamental can require the company to simplify its structure or sell off some of its assets. in other words, break up the bank so that it could be more easily liquidated and not pose a risk to the economy. so let's consider what happened during the lehman brothers bankruptcy in 2008. that's the one that sparked the financial crisis, nearly melted down the economy, and triggered the bailout by the taxpayers. the court proceedings took three years, clearly not rapid or

has expanded. traditionally, you are doing with monetary policy, but through dodd frank, you have had an increased regulatory side. correct? >> yes. >> we are familiar with your dual mandate of maximum unemployment. it is almost fair to say that there is an unwritten third mandate that would bring us to protecting the country from systemic risk? >> i think that is fair to say for the federal reserve. although, it is not something that applies specifically to monetary policy. we have a number of different tools and i interpret that as an unwritten third mandate with the federal reserve. >> talking about that, the monetary policy side and you have the regulatory side. side forod government us, we get concerned, not about your blackout period during the fomc meetings, we agree that you should have the blackout period. we do get concerned in congress when you take the blackout period that applies to monetary policy and when we ask you to come in and talk about the regulatory side, you use the argument of monetary policy and the blackout. >> we have no blackout period that applies to anything other tha

has been four years. are you feeling any safer about your money? because four years after financial crackdown and dodd-frankven close. explain it. >> listen, if these guys, if the extra regulations did work, why are we reading about the london whale fiasco at jpmorgan, a 5 or 8 billion loss. >> that's out of london. >> not really, the balance sheet is here in the u.s., it was a trading mishap, and the reason why is because for all of the regulations, these guys can't stop the bottom line stuff, which is excessive risk taking occurs on wall street. firms will go out of business. the question is when they go out of business, how do you prevent them being so big and catastrophic that it destroys the financial system and dodd-frank doesn't do that. >> when you say dodd-frank doesn't do that, too big to sell still exists. >> the banks are less concentrated, they took over bear stearns, merrill lynch was taken by bank of america, on and on. these banks are more systemic, bigger, and you know, i hate to say this, i am sure there's some smart regulators, most aren't smart enough to catch the -- >> smart enough to l

the fdic has discretion as to who they pay under dodd/frank, and guess what? out uninsured depositors for the same reason. >> they're slowly nudging the punch bowl, but they're still leaving the safety net there. >> clearly. >> our wealth correspondent, this is the week we were told consumers are in a funk right now, and it was even hitting the high-end retailers this week. what's going on? >> yes, this really has been so far a high-end/low-end consumer economy, but i thought the two most important messages this week came from a couple billionaires on our air. first was wilbur ross, of course, the great financial investor, saying he is now selling six times the amount that he's actually buying right now. so, he's a net seller in this environment. i thought that was interesting. and jack bogle wrote in the "wall street journal" that when there's a difference between perception and reality, reality always catches up. and i just think that there's so much irreality right now when it comes to risk pricing and asset pricing. i just think the wealthy right now feel

by the financial services committee chairman at that time, barney frank from massachusetts, passed what has come to be known as the dodd-frank act. named after chairman frank on this side and chairman dodd over on the other side. the dodd-frank bill. it went after wall street. it went after wall street. this was in the aftermath of bank failures. this was in the environment that folks were concerned about what the economic future of america would be. much like they are still today. this purported to solve so many of these challenges through more regulation. now, we can argue about whether or not this was a good plan, bad plan. i think it's costing us with economic growth. not helping with economic growth. that's not my point here today. my point here today is that as a body, as a u.s. house of representatives when we passed that dodd-frank bill which went over to the senate and was passed and went over to the president's desk and signed and is now the law of the land, we created an agency called the commodity futures trading commission and we specifically and ex-- the consumer financial protection board and we specific