dodd frank would have had some effect. and i'm reading dodd frank in the broad sense of tougher regulation. awareness by the fed what was going on, not allowing a lot of the excesses that developed, not so much the wall street piece but the lending piece of it. the very originating piece. but what would have happened. we're trapped in stagnation now. that's what my book is about. unless we do the right things to get out of it. what would have happened we would have tumbled into stagnation earlier. when historians look at this period, the trouble begun with the bursting of the stock market bubble in 2001 and what the fed managed to do was to keep the thing rolling along by allowing the housing bubble and facilitating it, and it was the right thing to do at the time we were in. i would have been making the same decisions as a result of this, six years of letting the bubble go on, we accumulated masses amounts of extra debt that we're now burdened by. we have a tremendous destruction of credit worthiness, which is so essentia

this is your dodd-frank piece. that solves the problem but unfortunately financial crisis caused a deep recession and to get out of the deep recession we need fiscal policy. for them that's all you need to continue doing. they solved the problem structurally in their view but now how long do you continue with this fiscal stimulus. now, the third piece, which is what i call the destruction of shared prosperity hypothesis. what happened around about 1980. we changed horses. we changed our growth model, and we moved to what i call a neoliberal model where we broke growth, the link between wages and productivity growth and in return we started driving the model up the economy with asset price inflation and debt instead of wages driving demand. now, that created demand gap but we papered over the gap. this is the study boom you're talking about. 30-year boom. this is the reality of the great moderation. the great moderation was papering over this structural flaw by pushing assets into the economy and debt. and of course

i mean, we send a lot of direction your way, certainly with dodd-frank and other proba you spinning a lot of plates in the air. we spent time talking with entrepreneur, folk whose create the jobs that make the country go and ultimately create the type of prosperity they everyone in this room, in this country, wants to see for their kids and grandkids. with that mutual stated goal in mi mind, there's a twin set of challenges that really can be faect affected by agencies like yourself. first of all, the regulatory uncertainty in this country, many business owners, many folks throughout country, many investors express concern with the regulatory uncertainty and its impact on the economy, and certainly when the rules of engagement through dodd-frank, the volcker role, whatever we're working on remain up in the air, many folks express a concern how that impacts investment risktaking when the rules of engagement aren't fully known by the folks expected to take risks and invest and make our economy go. second, a huge budget crisis in washington that is pertinent to this conversation as we tr

more than 90 required rule makings under dodd-frank. we have adopted or proposed, mostly proposed, three quarters of them. we have put in place, though, the registration system for hedge funds, the stemic systemic kicking in this summer. the whistle-blower program is in place. we've proposed all of the rules under the otc derivative section with the exception's capital market segregation and shortly finalize rules on conflict minerals from the democratic republicen the congo and extractive resources disclosure. we have accomplished a number of things particularly in the area of the hedge fund and private fund registration, and we've proposed many rules in the areas of title 7 derivative, credit rating agencies, municipal advisers and some of the other areas. >> so you're about three quarters there? you'd say? >> three quarters there, but the -- to be honest, some of the heavy lift is yet to come, to go final on a number of the rules that have been particularly controversial. for example, the volcker rule where we received more than 15,0

now the dodd-frank act tries to rule out the idea of a government bailout. that is probably the single most important provision of the dodd-frank bill. but there's a lot of skepticism about whether it will really work. the bill says it prohibits the federal reserve or the fdic from bailing out a failing bank. >> says it fairly clearly, doesn't it? >> says it rather directly and it says the stockholders will not benefit, the management won't benefit, creditors will be put at risk. in effect it says you've got a failing financial -- a big financial institution that people worry about the effects of the whole system, they get in trouble, the government can take it over. and at the end of the day that institution will be liquidated. and the government will get any money back that it put into it, because it will be the most protected lender. so that is a system which i think is a fair system. whether it works or not has never been tested. >> but why is so much attention focused on the volcker rule? >> well, i think it's coming now to the point where it begins to

. >>> the securities and exchange commission is tasked with implementing much of the dodd/frank financial reform law, and the agency's 2013 budget request is $1.5 billion. that's an increase of $250 million. s.e.c. chair mary schapiro recently testified before a house appropriations subcommittee about the budget request. >> hearing's going to come to order. thank you all for being here, and i'd like to welcome our witness, s.e.c. chairman schapiro. thanks so much for being here today. thanks to my colleagues for being here as well. joe and i decided not to talk baseball today, since both of our teams lost yesterday, so we're sad, but it is only the beginning, so, hopefully, it will all turn out well at the end. we'll be playing each other in the world series, right? anyway, again, welcome, chairman schapiro. the s.e.c. has the complicated mission of protecting investors, maintaining fair, orderly and efficient markets, and facilitating capital formation, while at the same time, not overregulating our markets and hindering economic recovery. the committee must be vigilant in our oversight

the clerk: h.r. 336 -- 3336, a bill to exclude certain lenders from the dodd-frank act. the speaker pro tempore: pursuant to the rule, the gentleman from oklahoma, mr. lucas, and the gentleman, mr. peterson, will each control 20 minutes. the chair recognizes the gentleman from oklahoma. mr. lucas: i ask unanimous consent that all members have five legislative days to revise and extend their remarks on h.r. 3336. the speaker pro tempore: without objection. mr. lucas: madam speaker, i yield myself as much time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. lucas: madam speaker, i rise to voice my support for this bill. first and foremost, i'd like to thank my committee's ranking member, mr. peterson, and his staff for their diligent work on this bill on behalf of end users and small business lenders. we have a long standing tradition of bipartisanship at the agriculture committee and their work was invaluable and i'd like to thank representative hartzler for her leadership on h.r. 3336 on behalf of small business institutions and the businesses

cordray, texas a critical of omission in the dodd-frank -- fixes a critical omission in dodd-frank when it comes to sharing information. given that the cfpb is not subject to the annual budget process, hearings like this are essential to the oversight process. hearings like this are the only opportunity for congress to exercise any oversight of cfpb at all. again, mr. cordray, i thank you for your appearance, and now recognize the ranking member of the subcommittee, ms. maloney. >> is mr. frank coming? pardon me? should we wait for him? first of all, i would like to -- should i wait for mr. frank? >> i will allow mr. frank to come in and make an opening statement. >> i will go ahead, in the interest of time. first of all, i want to welcome director cordray, and really thank you for your impressive accomplishments so far. i know that when we were doing the markup on dodd-frank, i offered an amendment that called for an annual report and oversight by this committee of the cfpb. that was later amended to make it a semi-annual report to congress, but if i had known that you would be before

the next issue was not the president issue but the dodd- frank deal which was done in anger. it was done by people who were necessarily frustrated. it will add 255 or more regulations and wondered 88 to justice regulations. if you go back to look at other issues that we have done that had 15 regulations, it would take two or three years so you can and magic. finally, there is a major effort to play to the unions on card check and the other issues which did not work. as a new president, i give him a c +. some of the comes from the environment. we don't do presidential politics. we do the house and senate but the industry and was not well served by the people who were assisting the president to move on some of these issues and the build himself a pretty big wall that he has to get over on those issues. >> with the economy he inherited, we are looking at 18 months and 2.9 million jobs. should he have done more? we have more job creation? if you look at the chamber building, we have signs the side of a railroad car that say jobs, jobs, jobs. we have to do three things in this cou

dodd-frank set the shipwright.he hearing, those who attended it -- i did not, but i hear from people who i respect that did -- did not go well. and it will go in front of a judge that probably will be objective. the d.c. circuit has already banned the first dodd-frank objective put in front of it -- has already been to the first dodd-frank objective put in front of it i want to thank my colleagues efforts and -- has already bent the first dodd- frank objective put in front of it. >> i want to thank my colleagues for revealing information on technical issues. i wish we could take your all on the road and let the american people hear from you about what is going on. i think it would be critical to do that. i thank you for the clarity, the candor, and for your commitment to the american public and to the american consumer at an unbelievably disastrous time economically in their lives. there are relieving -- they are really on my support. many, many thanks for your contribution today. >> thank you, madam chair. i want

>> absolutely not. >> reporter: directly to his call to repeal dodd-frank? >> no, not in the least. >> reporter: if mitt romney were to become president, would you expect him to take your phone call? >> i would expect mitt romney to speak to me occasion easy because i think he respects me. i don't think he would ever say i owe julian robertson a call because he contributed to my pac. >> reporter: these big donors toned say they just want their guy to win. hollywood producer jeffrey catsenback told us by e-mail he gave $2 million to the super pac behind president obama to counter donations coming from the president's conservative opponents. these unlimited seven-figure donation could buy a new level of special access to the candidates, but, scott, it's also true most of these big donors have that access already. >> pelley: unlimited money in both parties. wyatt, thanks very much. a grand jury may begin hearing evidence next tuesday in the case of trayvon martin. the unarmed teenager was shot to death by neighborhood watch volunteer george zimmerman. anna wern

let me talk about the amendment that we were responsible for including in the dodd frank legislation from extractive industries in which you were helpful in supporting that effort and having it included in the dodd/frank provisions. i would ask if you could perhaps share with us how you see that playing internationally. that is important for investors to have transparency, but it also leads to stability of governments that are critically important to u.s. interest. the international community is looking at the united states and sees the leadership here and wondering if you can share how you think this will be effective internationally. the leadership on transparency of the mineral companies so that the wealth goes to the people rather than to fund corruption. >> first, i want to commend you and the senator for including the principals and the disclosure requirements in dodd frank. we know and see it every day how development of natural resources has fuelled corruption and mismanagement and the so-called oil curse or resource curse and it impedes broad-based economic growth. you set a

some of the doors of speculation were begun to be shut by the dodd frank act but the republicans in theouse have every opportunity they have had to try to slice the budget the come commodityies futures trading commission that regulates derivatives. >> and oil. >> three years out or four years out almost from the financial crisis and we still don't have all of these comemodityies like oil traded on transparent exchanges. >> so the people -- i mean the dodd -- frank bill put in place what the commodities future trading commission was supposed to do. >> correct. >> they haven't been able to adopt all of the regulations surrounding dodd-frank. hence, there hasn't been any action on this. but the president called on congress to act today. >> yes, he called on them to put up money so there would be more cops on the beat. it's actually the same phrase that carl levin used in 2006, which shows you the power of these financial interests. and what really needs to happen is, first of all, we need to bring this trading into the light of day. speculators need to be dramatically constrained so we hav

dodd-frank set the shipwright. the hearing, those who attended it -- i did not, but i hear from people who i respect that did -- did not go well. and it will go in front of a judge that probably will be objective. the d.c. circuit has already banned the first dodd-frank objective put in front of it -- has already been to the first dodd-frank objective put in front of it i want to thank my colleagues efforts and -- has already bent the first dodd- frank objective put in front of it. >> i want to thank my colleagues for revealing information on technical issues. i wish we could take your all on the road and let the american people hear from you about what is going on. i think it would be critical to do that. i thank you for the clarity, the candor, and for your commitment to the american public and to the american consumer at an unbelievably disastrous time economically in their lives. there are relieving -- they are really on my support. many, many thanks for your contribution today. >> thank you, madam chair. i wan

in that respect, one of the principle tools from dodd-frank, a so-called orderly liquidation authority, which is the fdic's tool and the federal reserve is working close to the fdic there. the idea is to apply the same kind of bank resolution tools that the fdic has used many years on domestic banks to large complex financial firms. obviously the complexity makes that a much more challenges task, but i think we're making progress there. we have put out rules about so-called living wills, which would require large financial firms to, who essentially plan out how they would be disassembled, and we've continued to talk with international colleagues about how we would cooperate if a multi-national firm had to be put into receivership. and indeed, part of the reason that there's been some down grade or potential downgrade for some u.s. financial citizeinstis is the judging of the ratings agencies that these institutions has is less than in the past. and so i think ultimately what we'll need to have is a situation where large firms are both making judgments about their size and complexity ba

>> i want to get dodd-frank out of there, want to get rid of it... >> reporter: one key romney promise, to end the dodd-frank financial reforms, would specifically help wall street by halting new rules on the trading abuses that magnified the 2008 financial meltdown. robertson told us emphatically his gift has no connection to the promise. so your donation is not tied... >> absolutely not. >> reporter: ...directly to his call to repeal dodd-frank? >> no, not in the least. >> reporter: if mitt romney were to become president, would you expect him to take your phone call? >> i would expect mitt romney to speak to me occasionally because i think he respects me. i don't think he would ever say "i owe julian robertson a call" because he contributed to my pac. >> reporter: the big donors toned say they just want their guy to win. hollywood producer jeffrey katzenberg told us by e-mail he gave $2 million to the super pac behind president obama to counter donations coming from the president's conservative opponents. these unlimited seven-figure donation could buy a new level of special access

i know that when we were doing the markup on dodd-frank, i offered a, an amendment that called for an annual report and oversight by this committee of the cfpb. that was later amended to make it a semiannual report to congress. but if i had known that you would be before this body or someone senior as yourself would be before this body 15 times so far this year alone, i would not have offered that amendment. because you have been very accountable to us and to this congress. and i'd like to say it was great to have you in my district in new york where you discussed and launched an inquiry into overdraft practices. i know that you have made similar meetings across this country with various concerns from student loans to mortgages to just general concerns of consumers. and as we reach the three month anniversary of the cfpb as a fully-operational agency, i would like to note some of the bureau's outstanding work. while some will undoubtedly continue to define the cfpb as an unchecked agency, i believe that the bureau's accomplishments and oversight have been extraordinary. the bureau has

dodd-frank set the shipwright.ring, those who attended it -- i did not, but i hear from people who i respect that did -- did not go well. and it will go in front of a judge that probably will be objective. the d.c. circuit has already banned the first dodd-frank objective put in front of it -- has already been to the first dodd-frank objective put in front of it i want to thank my colleagues efforts and -- has already bent the first dodd- frank objective put in front of it. >> i want to thank my colleagues for revealing information on technical issues. i wish we could take your all on the road and let the american people hear from you about what is going on. i think it would be critical to do that. i thank you for the clarity, the candor, and for your commitment to the american public and to the american consumer at an unbelievably disastrous time economically in their lives. there are relieving -- they are really on my support. many, many thanks for your contribution today. >> thank you, madam chair. i want to tha

executive the compound it now while the vote is binding it was made possible thanks to parts of dodd frank that mandated the public companies have a quote say on pay vote to express their opinions on compensation so we have to ask are we finally seeing some occupy wall street style of motion make its way all of their shareholder echelon's maybe not considering that only two percent of compensation plans are actually voted against last year so unfortunately doesn't look like it's a trend it's not a movement it's just a one off slot in the face of big banking job which makes you wonder why isn't everyone doing it so earlier i took a change you are most of the young turks and i asked him just that. all right well mike you're part of the story was when i found out that you know doesn't actually mean it like oh yeah we'll take it under advisement of the case are we so you're big hundred eighty five million dollars for tanking our stock forty four percent last year oh yeah ok so oh thank you so much for voting you know now go home right why does it happen in speakers who are incredibly soft on t

our government it's the most obvious thing in the world you know the obama administration bill dodd frank is the one who . played. ball by god ladies and gentlemen we've got oh he said you realize afterwards we didn't get anything you can still do whatever the hell they want i want to have to be brought up the party but it doesn't actually matter non-binding vote too because that was the other thing that i found battling you know put i guess we also have to ask because the whole point of this is that shareholders actually have a say in the company who's running the company what kind of rewards they get but so then we think of who it is that these shareholders are you know. basically who are these people that are making the vote because if it was average joes i think we would see a lot more nose. so you know you know the funny thing is only the guy who is screwed is that riccio because a lot of these shares or our pension funds for example one of the organizations that voted no was fun in california and those if you see shares going down it's usually patients that are holding it because th

in terms of what should go, at this point it's actually hard to say because a lot of dodd-frank is notvolcker rule and probably not amaria, i welcome this to anybody that wants to go online. a great survey of the existing literature out there. by the way, he's complementary of the books written by journalists. >> all right. that's good. >> we like him. >> steve, thank you so much. steve liesman. 15 minutes before the trading day closes. the dow inching towards the worst at 99 points. >>> video games are suffering in sales but is there a real bright spot out there for this industry? details on the story straight ahead. >>> and then one options action trader talks about why we need to pay attention to copper. >>> here's how the major commodities have been trading so far today. back after this. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas t

dodd frank was unusual in its allowance of enforcement of the federal law. we want to make sure that we are not going in 50 different directions. we are inclined to be respectful of the states, as we have situations, if they come to your attention, and we would be interested in hearing concerns in that regard. >> five minutes. >> thank you. what would be your personal motto here? >> good to get direction from down there. what would be your personal definition of fair? f a i r? >> i do not know that my personal definition is relevant. unfair is a defining term in the law. my job as the director of this bureau is to enforce the law that congress has enacted. therefore we will apply the terms the congress has enacted. i think it is likely that you, i, and most people would have salient comments of the consensus view of what is fair and unfair. there were probably be a significant number of circumstances in which we all agree. there are areas in which we, as a bureau, need to be careful. >> what is the definition of fair that you are going by? >> it is the defin

one, do you agree that dodd-frank...that law, that provision is having a major impact and that it is, as miss simpson suggests, going to be broader than just citigroup? >> no question that the dodd-frank act and the specific provision that allows for shareholders to have a say on pay and taken a active vote and express their views has been a significant step in this direction. it's given the shareholder it is opportunity to directly say whether they support or don't support what the boards are doing as it relates to executive compensation programs. also, what we're seeing as a result of these votes, while they're nonbinding, boards are taking these votes very seriously and we are seeing changes as a result. >> warner: so back to you, miss simpson, what do you actually expect to happen here? because i hadn't realized this when i first heard the news yesterday but this is a pay package that was not only voted on last year but a lot of it was paid last year. are you... what are you looking for the board of directors of citi

and at the heart of dodd-frank is the volcker rule. there are many parts of dodd-frank but the real stick her have the volcker rule and i had breakfast with paul volcker and my understanding coming away from that many, many months ago was what he was trying to do was ensure that individual's deposits wouldn't be soaked up and used by institutions for trading. fair enough, they shouldn't be. >> rose: and if you were a depository institution they didn't want you taking that kind of proprietary risk. >> and they shouldn't be. >> rose: so reading the volcker rule like that, you approve. >> absolutely! snft we shut down our proprietary businesses before volcker started coming into effect. before the volcker rule got... >> rose: but after the crash. after the crash because we learned ourselves. so i always felt a much more elegant solution to the volcker rule was not to try and legislate what you can and can't do. so we'll make it so punitive nobody will want to do it because your shareholders won't let you. so let a market mechanism drive i

dodd-frank set the ship right. the hearing, those who attended and i did not, but people who respect did not go well and i was in front of a judge is probably going to be rejected as in the d.c. circuit has dirty been the first dodd-frank provision. >> what that i'm going to turn it over to the leader for a close. i'm going to akamai colleagues. i want to thank my colleagues for their time in the question to thank you for that is an unbelievable, revealing hearing from what our can country technical issues that my colleague, mr. larson said that allow you now speak for myself to understand clearly what is going on. i wish we could take you on the road and let the american people hear from you about what is going on. it would be critical to do that. i thank you for the clarity, candor and for your commitment to the american public in the american consumer at an unbelievably disastrous time economically and their lives. they are really -- they are on life support and this -- addressing this issue is crucial to their

there's been and you've heard me talk before about dodd frank and the volcker rule. we're seeing inventories at the lowest level i've seen in maybe my 30 years of business. and there's no activity in the corporate bond market. there's going to have to be some provision for these buyers to be able to sell them. if they don't feel they can sell them and there's no buyers for them -- >> and very quickly detroit getting a pseudo bailout. i'm going to take you back to muni bond. >> that's my home turf. >> do you agree there will be more than 80 bond defaults? >> i don't agree with much of anything whitney has to say in munis. been out of munis for a very long time. i think that the muni bond market is solid, stable, defaults will be one-off but nothing like she predicted. >> jim, jim, great way to start the show. thank you very much. have a great weekend. go cubs. by the way opening day today. and we'll leave you as we go to break the rose garden of the white house, the president set to sign the jobs act. many say, hey, this is going to really help entrepreneurs and start

they are saying because of the dodd-frank regulation. and if they have assets of less than 10 million, those regulations and oversight will not have any direct impact on those communities, financial institutions. >> well, we won't be enforcing the law with respect to them. we won't be examining them, except possibly to ride along a story that we don't anticipate utilizing in the immediate future. regulations will affect them and that's why i have said time and again in front of his and other panels that we need to think carefully about what the effect of our regulations may be on smaller institutions. that's why we are utilizing the panel to make sure smokers have the ability to inform us directly about their concerns and their operations and how they work. that's something we're taking very seriously. we have one and soon a couple more of those panels that work. and so we are listening carefully to them. i am creating an advisory council for can pashtun community banks so that their perspective does not get lost in the shuffle force but

of course, dodd frank, that's the intent of it. my my question is two-fold. do you agree and is there an argument to be made for breaking up the banks and is that something that the fed should consider when weighing financial stability and to this earlier point that you made, what, in your view, is a litmus test that will allow us to know that we can achieve too big to fail through dodd-frank. >> where, there could be a situation where an institution is artificially large and i suppose that considering breaking it up would be something that regulators should look at. in my own view, though, a more market responsive way to address this problem is to eliminate the incentive to be too big to fail. that is, to -- through tougher supervisory oversight, through higher capital requirements, through restrictions on interconnectiveness, et cetera, take away the benefits or force firms to internalize the complex. and as i was saying earlier, if we can safely unwind a failing firm, then we no longer have too big too fail. that's a very, very important objective. the tes