i went to academia and can get to the fdic in 2006. the fdic said i'm already on top of this. we started speaking very early about the lending standards. i think we do have a good track record on that. >> when you were at the fed, did you bring it to the attention of the then treasury secretary o'neill? >> well, we did. we initiated something. they tried to get -- the hill wasn't going to have mortgage lending standards. there were some on this committee were trying to do it and it but instead they decided they didn't want the lending standards. so we put together a group that the industry, consumer groups to develop best practices to try to put some curbs on this, but it was voluntary. it helped a little on the margin. >> thank you for that response to be it one more panel wide question. do you think that u.s. taxpayers are better off today but dodd-frank or are they not better off in fear of another bailout. i will start with mr. hoenig. schenectady we have institutions that are every bit as vulnerable as we had before and i think that is the concern. hopefully we have the t

and the one most concerned with the public which is the fdic. so we ask the question can be e eliminate the problems just by being able to allow the companies to go into bankruptcy which is a normal thing or something like bankruptcy which is a normal thing a failed company does it to take on too much debt you go into bankruptcy. can we create something for banks that want of collateral damage. that's the issue. it's pretty problematic. they have some things that are supposed to help like living wage but then i don't want to resolve you under bankruptcy said there are issues there. supposedly in title i there would be great supervision and cooperation. let me see the fdic is doing a great job trying to do this but it's not a point you want to get to. just a trigger by itself is a great when you get to the point you want to trigger this spigot has said in a meeting when we represented what the fdic would have done if it had the authority to resolve lehman brothers instead of sending them to bankruptcy it would've done a great. his question was wh

right now and the one most concerned with the public which is the fdic. so we asked a question could we eliminate the problems just by being allowed to have the company is going to bankruptcy which is a normal thing or something like bankruptcy that is another thing a company does if you take on too much debt the new can't pay your debt you go into bankruptcy giving it can we create something that won't have collateral damage. that is the issue. well, it's very problematic. they have things in title i that's supposed to help like tell me how i would resolve under bankruptcy but then i don't want to resolve under bankruptcy so there are all kinds of issues there and supposedly in title i there will be great supervision and cooperation. this is a very -- let me just say the fdic is doing a great job of trying to do this but it is not the point that much to get to. just the trigger by itself is already too late. when you get to the point you are going to trigger this, as paul volcker said when we were presenting the fdic would have done if the had the author

that was, that was carried out via the fdic's authority. they had the ability to add extra money and pay off uninsured creditors, uninsured depositors in bank failures. and the federal reserve has a role, too, because when we lend to a failing bank before it's closed, we can let uninsured creditors get their money out before the closure takes place and the remaining hundred creditors are forced to take losses. so we still have those modalities but we still have those capabilities of keeping short-term creditors from having to bear, letting them escape without bearing losses. so that's the extent to which, that's why she says yes, that authority we use, the way we chose to do it has been abolished. but we were doing at the waist before that. >> got it. anything you want to add to any of the? >> i think president lack has given a good explanation of what we think she meant by that. one of the things that has been touch on both sides of the aisle is this idea that the subsidy, the government subsidy that is real against competitive disadvantag

so right now the creation of this, the fdic knows how to take over the very small banks. the biggest is that maybe it wasn't a mutual or whatever. but with any theory, we are asked to talk about this in a crisis or not in a crisis. the fdic now has authority to do this probably for the best, they are the ones that are the best to have this authority. we basically resolved and created some site content kind of a process. creditors will somehow be paid, functions will be maintained, with a kind of set the prices and sell off the pieces, they could create a better idea than just bankruptcy. so whoever is gaming the systemic, the fdic is charged with the straits i'm going to say that we have the divide on this process and this committee. a number of other people. so there are a lot of meetings that were presented on this issue. it is very good to be here because it lets us ask a bunch of questions and this is what i consider right now to be the best regulator and one most concerned with the public, which is the fdic. so we asked the question, could we eliminate the problem ju

the fdic will not criticize a restructured loan. we also appreciate the significant challenges borrowers face for refinancing higher rate private student loans. one of the more important challenges is the lack of participants in the refinance market. the fdic continues to seek solutions for challenges in the student lending arena. in the next few weeks, we intend to issue a financial institution letter to the banks we supervise clarifying and reinforcing that we support efforts by banks to work with student loan borrowers and that our current regulatory guidance permits this activity. the financial institution letter will make clear that banks should be clear in their transactions with borrowers and make certain they're aware of associated eligibility criteria. we have also formed an internal working group to engage private student loan lenders and consumer groups on these issues. we are discussing our current policies and the refinancing challenges with other regulators to determine whether additional clarifications or changes of c

>> if it's fdic insured, high-yield savings account, something fdic insured. of the online banks, they tend to have some of the best rates. you're not going to get even 1%, you're not risking losing your principlipa principal. >> but it drives my mom crazy. >> and i wouldn't be in a money market exactly because you don't have the fdic insurance. that's something else to keep in mind. >> i'll be getting a phone call tonight. yeah, i'll be getting a phone cal tonight, thank you, liz very much for that. >> you're welcome. >> how much higher do you think rates could go here? >> well, we saw this happen ten years ago, almost ten years ago to the day in 2003 when the fed actually increased rates by 25 basis points and we saw interest rates jump 1% within one month. so we've already seen that. we've almost experienced that already here in the last few weeks. so i think that they can go, but the biggest component and you bring up a really good point. and it's the point of about the pace that rates go up. so when you're looking at where to invest your money you know if

and there isn't a breakdown in the fdic numbers of the specific names of the banks they're concerned about. but you can see it geographically. up in the northeast, there's a large number of banks that now have long-term assets that are more than 30% of their portfolios. that's a reason to be careful. at the same time, you can see many commercial banks now have long-term exposure that have risen to record levels, up towards about 50% of their loan book. that's significantly higher. so it's really the type of bank that people should be watching carefully, that the northeastern banks, the commercial banks, savings banks, you should be asking in particular if you're an investor in those banks or a saver, lacking at those, going to balance sheets right now and asking the management, what are you actually doing about hedging your interest rate rate risk? >> the bottom line, it sounds like it's the velocity of the move in rates that could be the problem here. in your reporting, what have we found in terms of those smaller banks that could have the bigger problems. are there specific names y

officials, fdic officials is sketching out this argument as to why banks are still too big to fail.tutions still too large? >> the federal government in the u.s. has done a fabulous job of post-dodd-frank. it has a resolution recovery froch deal with the largest institutions and the regulators have been working. we're close to having a complete system that can resolve the largest institutions in the world. >> if you look at how big these organizations still are, one of the arguments put forward by fed officials, james bullard was telling us the other week if these banks were smaller they would be more profitable. do you think that's the case that there are more profit physician these banks are small center >> the marketplace ought to tell us that. we're lucky in western society to develop fabulously effective marketplace mechanism. let's let the marketplace tell us that. resolution recovery mechanism that the federal government has put in place is great. i want keels with the too big to fail problem. in terms of what size they should be, it's going be fwrong it comes from one source

there was substantial privacy for the fdic. and my dean was reviewing my homework and i want to make sure i'm presentable and for minute order or for transfer of calendar. it will be an annual report and we will receive the information and make sure i have descents of

the fed and fdic have been working together to safeguard deposits during a crisis.rrent level is 6%, or twice the minimum capital requirement under basel 3 rules. a report says only wells fargo would pass at that level, and a source at the fdic is said to be pushing for a higher level. it stoked a sell-off? t in the banks today. they're off of the lows but still in the red. this spring, the basel rules were challenged when senators brown and vitter proposed legislation that would require banks to keep 15% of assets in capital at all times. a hearing on that, bill, is expected at some point this summer. as is the final rule from basel 3, and at least a draft rule on any increase capital levels from washington. so we'll stay tuned for that, but no word as of yet. maria and bill? >> thank you very much. we will be talking with the ceo of bnp paribas to find out his plans and look at the regulatory changes on the horizon. >>> tesla and new york state involved in a war of words. phil, what's going on here? >> maria, this is the case where new york is the latest state whe

chairman, i'm not sure about this with the fdic. i do know that they have sources and resources that are outside of the appropriations process. so i would look there to try to answer your question for comparability. >> we testified earlier. we are receiving the agency spending from the federal reserve system that it allows us to focus on what we are doing. i would submit that focus comes only when the agency is actually accountable to congress for its appropriation. in reference to american banker article and other articles, there has been much attention given to the fact that the cfpb has been losing its staff in a variety of other ways since its inception. one recent article reports that in recent months, more than a dozen senior officials have left the agency in interviews with american bankers, several officials offered differing reasons for the flood of departures. but many sided cultural clashes between the new agency and the regulators were they used work. can you just briefly offer an explanation for the rash of departure fr

fdic as nate allowable strategy. -- a liable strategy. most of these large financial organizations are just that. thousands of entities. we need them. they are intertwined. can support multiple business functions. given the complexity of their structures, it will be difficult to break them up. by taking control of the holding company and putting that into ,eceivership, all of the equity the government is owner to continue to get to this restructured and healthy again. would it be easy to do? absolutely not. it can be operationalized. if they had to be. that's not to say it cannot work a lot better. we need larger capital cushions and requirements to make sure there is lots of loss absorption. and we need a better resolution plants and simplification of legal structures to make it more smoothly. mechanismthere is a that can be used now to protect taxpayers which is where it should be. >> governor? >> i would certainly agree. title ii has gone a long way and the resolution plan of living wills is a fundamental aspect of that. one of the rea

>> i am not an expert on the other agencies but there are agencies that receive, like the fcc and fdicfunding from specific dedicated sources that are not appropriations. there are instances but as is the case with us that not appropriated money for the operations of that entity. >> but here's the question as some suggestions we subject the bureau to the appropriations process. and to regulate through the process and i could probably get that answer up i am not sure that we can find but that should be subjected to the budget process. but you don't know of any so with the benchmark stipulated in the act you must report in terms of salaries in terms of funding to your point* so the big concern legitimately is i have not heard anybody say to express consensus with the deficit. but considering budget constraints, if you have to make a choice over what budget item you choose? >> stood to as we still build up our capacity as with the american consumers as well as regulatory responsibilities, it is the case that we are very fearful stewards of our funding and we make sure it is managed approp

. >> reporter: the former head of the fdic who helped to write dodd-frank was left to defend it saying the agency's ability to take over a big bank and stick shareholders and creditors with losses in this too big to fail, but she acknowledges that regulators still have to finish writing some of the import rules around this and have to make it clear to markets that it will work. cheryl: my next guest said that he is still betting on equities. values. chief research analyst. i want to get your take on what we saw today. weaker gdp number did not affect the markets. old news potentially, but the fed still is the unknown factor here. you are not worried about ben bernanke. >> and not worried about the stance they will take at this juncture. basically we are perfect. we want to be gdp. running 18, two, totally getting off of the 3 percent. and on think it will make the move. it will focus on what presumably unemployment is. it might just have been a suggestion by the fed that they really wanted to tamper in sort of the asset prices that may have gotten ahead of themselves. i don't see equit

. >> the former head of the fdic, she liber, who helped write dodd-frank was left to defend the legislationthis hearing. she said that the agency's ability to take over a big bank and stick shareholders and creditors with losses in is too big to fail. liz: listened. i am open to all and every opinion, but we do not want ted use taxpayer money any more to bailout any private financial cetaceans. i think that's pretty clear, right? >> i think that is what this hearing was about. liz: closing bell ringing in about 39 minutes. we take you inside in a fox business exclusive. no business network, no sports network, no network has been inside the transformation of the world's most famous arena with its taurus by the ceo and president himself. hank ratner. the stock as soared over the past year. in fact, over the past three years. the transformation began. coming up at fox business exclusive. plus about our next guest is set the bar so high when it comes to picking stocks that he is not worried at all about these daily triple digits swings. he's going to tell you exactly how he selects the vip name

it is called go bank, no fees, also the first approved by the fdic and 556 years.e willing to give up the option of ever walking into a branch and just doing all of your bank to run application? here to tell us all about the spread through is go bank had a product development. thank youor joining us. >> a pleasure to be here. melissa: you are younger than i expected. don't know why would be surprised. you loo like you're maybe about 12. how long ve you been doing this? make us feel confident about this. looking at you and even more nervous about giving money. >> you know,irst and foremost it's a real ftse interbank account, so you can always rest assured that your money is safe and backed by the federal government's. but on top of that, i have been building mile applications f close to a decade now. we know this inside and out. melissa: tell me how your fee structure works. i have been hearing your ad. i think -- no fs at all, but there are things that you can pay fees for if you want certain services. how does itork? >> with go bank what we want to do is make

they would have to list even more assets for sale if the fdic says, living wills are inadequate.ew legislation we're talking about would say, to all of the too big to fail companies that you would have to put aside 15% of your equity against your assets. ashley: that is huge amount. >> that is huge amount. goldman sachs is saying $1.2 trillion over next 15 years. that would s&p stock buy backs. that is big deal. jamie dimon already told congress, listen there is an answer to too big to fail, bankruptcy. break them up. then the london whale happened. that undercut his thinking there. tracy: cross the line, doesn't it? you can get, next thing you know they will come down on best buy because they offer credit cards. that could be indirect. ashley: too big to fail. tracy: crossing the line. >> there is a definition of what is a too big to fail. very amorphous and subjective. tracy: right. >> it is contagion, it is capital. it is control. if you have $500 billion in assets then you possibly on the radar screen to be too big to fail. aig is now around the size of ge capital. so those c

in the st couple of years in the markets that i think people should look at like index cds that are fdicre really lending themselves toward the capitol preservation in case that theuesses wrong. gerri: ractuff. thank u for coming on. appreciate it. we will be right back with my "2 cents more" and the answer to our question of the day. do you trust doctors a hospitals to keep your medic records private? stay with us. ♪ with thepark cash card from capital one... boris earns unlited rewards for his small business. can i get the smith ntract, ease? thank you. that's three new par shredders. [ ris ] put 'em on my spark card. [ gart] boris' small business earns 2% casback on every pase every day. great businesses deserve unlimited rewards. re back the chicken's testimony, please. "buk, buk, bukka!" [ ma announcer ] get the spark business card from capital one and earn unlimited rewar. choose 2% ca back or double miles on every purchasevery day. told you i'd get half. what's in your walle [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] whe

witnesses will talk to the consumer financial year, the federal reserve, and the fdic at 10:00 eastern. after 1:30 p.m. eastern, president obama will be at georgetown university for a speech on climate change and regulating greenhouse gases. in a few moments, today's headlines, live on [video clip] ." "washington journal." we will talk about emergency preparedness at 10:00 a.m. and a house is back in session for general speeches at noon eastern with legislative business at 2:00. minutes, we'll be joined by a republican representative from kansas, a member of the energy and intelligence committees and will talk about president to bomb us's speech today on energy issues. at 8:30 eastern, will focus on the disk diplomatic -- on the diplomatic aspects of edwards noted. -- edward snowden. ♪ ♪ ♪ tot: welcome to washington on this tuesday, june 25, 2013. at a live image of the supreme court building. the court sits in the second day of a row. those cases we are watching party marriage and the voting rights act. across the street in the capital piddling in the senate continues -- in the capito

the last couple of years in the markets that i think people should look at like index cds that are fdicly lending themselves toward the capitol preservation in case that the guesses wrong. gerri: race stuff. thank you for coming on. appreciate it. we will be right back with my "2 cents more" and the answer to our question of the day. do you trust doctors and hospitals to keep your medical records private? stay with us. ♪ at od, whatever business you're in, that's theiness we're in on-time delivery records d a low claims ratioio, we do whatever it takes to make your business our business. od. lping the world keep promis. it's be that way ysince e day you t.. but your erectildysfunction - itld be a question of blood flow. cialis talafil for daily use helps you be ready anytime the moment' right. yoand the same cialis is thet inonly daiily ed tablet. approved to treat ed and symptoms of bph like needing to go freqntly or urgently. tell your doctor abo all your medal conditions and medications, and ask if your art is healthy enough for sexual activity. do not take ciis if you take nitrates

the committee will hear from the consumer financial protection bureau, fdic, federal reserve, and office of the comptroller of the currency. live tinian eastern on c-span3. >> today, president obama delivers a major speech on his plan to tackle climate change. he will announce executive orders to direct federal agencies to reduce greenhouse gas emissions that cause climate change. live coverage from georgetown university 1:35 p.m. eastern on c-span3. >> are you grand marshall is an associate professor of constitutional law at john jay college. thanks for joining us. >> thank you. >> a number of rulings on the supreme court as its term winds down but we'll focus in on one. what did the court decide in the fisher versus university of texas case? >> abigail fisher had challenged the failure of the university of texas to admit her and she said it was based on the 14th amendment, equal protection, discriminatory action and their admissions policy which uses race as one factor was discriminatory. and the court today decided that the first part of the admissions process which is to take 10% of

there's a big difference between that and a reinsurer simply takes an fdic-like free from the marketrticipants and then insurance a portion of the mortgages. >> that's what is in the legislation. >> let me go to ron. what should they do, ron? >> well, look, first of all, larry, let's recognize that what's going on in mortgage finance is a form of qe. over 90% of mortgages are backed by fannie, freddie or hud, so this has got to be thought out before we just take out subsidy, and it's been a huge subsidy to housing. in fact, i think one of the largest subsidies of all time between fannie and freddie and the interest rate deduction. the bill is not going anywhere. it's found talk about, by think it's a harvard business school study. >> conservatives like myself, larry mcdonald, i would like to see fannie and freddie broken up and would like to see a completely privatized secondary mortgage market and so forth, but, you know what? right now i don't know. right now maybe you let sleeping dogs lie. there isn't going to be any consensus on this, and what's -- what's to be done should be do

. >> your money is safe today, period, in any bank protected by the fdic.think it's good you don't have a one size fits all banking system. you can pick and choose what you want. >> so long as it's transparent. >> absolutely. completely agree with that. >> all right. good to have you on the program. >> thank you very much. >> thank you very much for the important insights. >>> up next, somewhere, somehow, george orwell is feeling very satisfied tonight. the national security agency surveillance leaks still fresh. is it any wonder that sales of orwell's classic novel "nineteen eighty-four" are surging 37% this week on amazon.com? coming up, hear the debate over the nsa leaker snowden. >>> and news corp. getting ready to fire a salvo owned by disney. what will that do to your cable bill? stick around. before global opportunities were part of their investment strategy... before they funded scholarships to the schools that gave them scholarships... before they planned for their parents' future needs and their son's future... they chose a partner to help manage

sheila bair and the fdic.hen the crisis ended three years ago, he would have gotten to the end of these programs, he'd be in a much better place today. >> mark, you want to just last word on that? >> well, i just think we would have been in a very horrible place if we hadn't seen the quantitative easing that we've had over the last couple of years. i think we would have had the deflation that bernanke so fears. >> guys, we'll make that the last word. rick, thanks to you as always. mark, thanks to you as well. >>> breaking news on auto sales right now. phil lebeau has some details. phil? >> all the numbers are in and the may auto sales pace, 15.31 million vehicles. that's a little more than most were estimates. most were expecting 15.1, maybe 15.2. may auto aesales an increase of% compared to may of last year. 15.31 million vehicles. that's the pace for the month of may. back to you. >> all right, phil, thank you. >>> now, we've got, what? about half an hour. >> 35 minutes left. >> 35 minutes. thank you for doi

ironically, the safety and soundness regulators, the fdic and the fed and others two years ago put togetherqualified residential mortgage and they had many of these concepts. the government mortgage complex has been furiously pushing back on that proposed rule ever since. tracy: that's the problem. ed pinto, i hope they're listening to you down there, sir. thank you very much. >> thanks, tracy. always a pleasure. tracy: yeah, you too. ashley: all right. coming up, a waaning from a big-name ceo who says the baby boomer generation, they're getting old and they could derail our economic recovery. tracy: dam it, they need to spend money. a look at today's winners and losers as we head out to break. the dow is up 143 points. here are the winners. cliff natural resources, a charles payne favorite. we'll be right back speak 30 minutes until the close. nicole: hi, tracy. these 100-point bills are no stranger to folks on wall street. let's take a look here at a name that has been weighing on the s&p 500. they have been facing competition. giving an outlook that is weaker -@than expected. smithfield

institution that has been designated too big to fail, how they are taken into receivership from the fdicnd then wound down. a lot of us believe that is not going to work if we have a financial crisis like we had in 2008. we don't think liquidation authority will work. that is what our concerns. forjudicial review process being taken into receivership, we don't think there is an appropriate review process in the courts for those companies that object. the concern theto fail, you have federal taxpayers stepping in and bail in a massive financial institutions and we want to make sure that does not happen again. if we don't think dodd-frank necessarily address is that and i think we will have a committee discussion about how the orderly liquidation of three works and how title two works and a conversation -- if we want to stop institutions that are too big to fail. we don't want the american taxpayer to the backstop and what do we do to accomplish that? many of us are moving toward capital institutions for these companies that they can meet any financial crisis. happen.l crises they will hap

whether it's the the tpp that we will not -- we will not undermine in i of the financial regulators fdic, the fed, treasury, any of them. >> yes. >> okay. thank you. let me ask something else on the trade agreement. does an agreement like this, does tp pressuring need investor state resolution. i understand the argument for investor state that have no had the the history of law and public enforcement and all after. why do we need -- do we need an extrajudicial and private enforcement system when they are as sophisticated and advanced and protected already? >> well, first of all, senator. we are still in the out-day period. we haven't yet launched the negotiation. we are in the process of taking in input and feedback from members of congress, stakeholders, and others. i think it's a topic worthy of discussion as part of the consultation process. our goal in all the agreements is to try and establish the highest possible standards. and new discipline where appropriate to raise the overall level of the global trade system. how it gets translated is an issue we need to consult on. >> do you

in 2015, barack is shutting down the fdic. is taking over unemployment.t is in the barack obama health care lawbook. he has 36 loss slated. he is focusing on the middle east. -- he has 36 laws slated. guest: bank of america is not going to take over our health care. i do not think any of what i just heard happens to be true. ypsilanti, michigan with james lacey. go ahead with your point. caller: i am a state delegate with the republican party here in michigan. i was in d.c. yesterday at the glenn beck rally and i talked to mert.sentative go my question is this. in 1971, richard nixon took us off of the gold standard. our dollar is not backed by oil. since then, we have found out oh well. abionic it keeps on coming up in alaska. we have a problem with the russians. they do not want to use the u.s. dollar and the world does not want to use our dollars. we had a treaty in 1971 with opec to use the united states dollar. our dollar afloat, we have to use their military. we are going to have problems with the russians. rubles.t to use host: we will leave it the

the committee will hear from fdic, federal reserve and office of the comptroller of currency. live at 10 a.m. eastern on c-span3. >> tuesday president obama delivers a major speech on his plan to tackle climate change. he'll announce executive orders to direct federal agencies to reduce greenhouse gas emissions that cause climate change. live coverage from georgetown university, 1:35 p.m. eastern on c-span3. >> you're watching c-span2 with politics and public affairs. weekdays featuring live coverage of the u.s. senate. on weeknights watch key public policy events and every weekend the latest nonfiction authors and books on booktv. you can see past programs and get our scheduled toes at our web sites, and you can join in the conversation on social media sites. >> next, a discussion with gerald shur, founder of the federal witness protection program. from monday's "washington journal," this is 35 minutes. >> host: on mondays at this time we look at your money, how federal dollars are spent, what the programs are that they fund and how the services work. our guest this morning i

agreement for the tram line that we will not undermine any financial regulators, fdic, said, treasury can any of them. let me ask something else. doesn't agreement like this need investor state dispute resolution? i understand dealing with countries that have not had the history of the rule of law and investor protection and public enforcement and all of that. to be made in extrajudicial and private enforcement system when you assume the property rights are sophisticated and advanced already? >> senator, we are in our 90 day. it is not launched negotiations and are in the process of taking input and feedback from members of congress come stakeholders and others. i think this is a topic worthy of discussion as part of the consultation process. our goal in these agreements is to try and establish the highest possible standards in new disciplines where appropriate to raise the overall level of the global trading system. how that gets translated as an issue any to consult on. >> to think investor state transitions and property rights group of countries like the e.u. than in a trade agreem

witnesses representatives of the consumer financial protection bureau, the federal reserve, and the fdic. now a hearing on medicare prescription drug abuse. witnesses before the homeland include committee officials from the drug enforcement administration and the medicare and medicaid services. this is a little less than two hours. thank you forng. being here. for your preparation and attendance today. in colleagues are coming from across the country this afternoon. we will be joined by a number of them as this hearing proceeds. today we will hear from several witnesses about the medicare prescription drug program and its vulnerability to waste, fraud, and to abuse. medicare is a critical inponent of our healthcare our nation. prescription drug programs, which we know as part d, was past seven years ago in 2006 bid we are now in its seventh year. the overall views of the program has been generally positive. more than 31 million citizens participate. the congress must ensure that $60 billion a year works and efficiently. unfortunately, medicare including part d is not as effective or effi

they don't get the safety net insurance of fdic if they engage in risky activity.w we encourage -- the government encourages the banks to engage in risky operations. >> bill: because we'll bail them out. >> as long as that happens there will be more bank failures and the system it will be less stable more fragile as a result. >> bill: i have to ask you senator, president obama got a little bit of flak when he was traveling in europe over the news of what nsa is up to in this country in this massive collection of data, about phone calls made in this country. do you support what the nsa is doing? >> i don't know enough yet. i do know that they should -- i don't like how much money the contractors are paid. i think that encourages bad behavior. i don't like that they give security clearance to so many people especially outside contractors. i think you start with that. i've been to briefings. i'm not yet clear on is there function in all of these cases warranted. we clearly need to balance national security with privacy protections. but i think that it's not managed we

we need to put more capital at risk, have that government backstop, set it up as an fdic type model whereguys keep referring to these in quotes, those people who have economic interests. i'm curious, what do you make of the fact that you have investors buying the common stock, you are buying, they're boying the preferred? regardless of how you want to characterize them, what do you think of that? >> oh, gosh. i think people, you know, this free enterprise, trying to figure out ways of making money, when you combine for pennies on the dollar. >> is there something wrong with it? >> no. i have no problem with it whatsoever. that's an issue, by the way, that many of them would settle with their suit with treasury over the things that happened in the past. but that's not what this bill attempts to do. this bill attempts to move away from the status quo as we've mentioned and to put private capital in advance of taxpayers. suit will be settled by others. we're the legislative branch, not the just didiciary. this has nothing to do with personalities or people. we are trying to put together a sy

witnesses will include representatives of the consumer protection bureau, the federal reserve, and the fdic. now a brookings institution discussion on cooperation between the u.s. and mexico. speakers include the former head of the u.s. customs and border protection agency. this is a little more than an hour and half. >> ladies and gentlemen, good afternoon. thank you all for coming today. we have launched a book, "the end of nonstop jet," which covers the crucial relationship and looks to the future of mexico. this afternoon, we have a remarkable panel. the biographies are in the program and i do not intend to repeat them. what i want to stress is the following. a shared responsibility exists between the u.s. government and the mexican government. second clinton was perhaps first -- secretary clinton was perhaps first the to enunciate that. but since that time senior officials from washington have repeated that commitment that the violence in mexico is also our violence and due to the fact that we are the largest market for the illicit products which move toward our border. and that our in

the fdic. >> yes. >> one more thing. does an agreement like this do they need investor state. i understand the investor state canceling with countries that haven't had the history of the rule of law and investor protection and public enforcement and all of that. why do we -- do we need an extrajudicial and private enforcement system when the u.s. and european property rights are sophisticated and advanced and protected already? >> first of all, we are still in the ninety day period of consult assistant. we haven't launched it yet. we're in in process of taking in feedback from members of congress and stakeholders and others. it's i think it's topic worthy of discussion of the consultation process. our goal in the agreements is to try and establish the highest standards and do discipline where appropriate to raise the overall level of the global trading system. how it get translated is an issue we need to consult on. >> do you think investor state provisions are fundamentally different in a advanced property rights group of country like the e.u. than in the trade agreement we m

me go back to the question i started back in the beginning, because unlike the fdic or the federal reserve-- and certainly we heard this, that your budget is statutorily ped, and it is much smaller than the other budgets. but yet when we look at -- i am going to call it, cost savings, what you have done in 2012, i was very pleased when i was able to read that despite your limitations, small a budget into what those13, that limitations, however, 6 million consumers are receiving refunds because of your 2012 enforcement actions. and that you have also handled the more than 150,000 consumer complaints since you opened. in of which, i think, is part why you are there, to be able to serve consumers. how will one of your core if your be affected budget was to be severely capped in light of maybe you did a little renovation, so you could be able to use i.t. and be able to communicate and probably increase those 150,000 consumer complaints. how would this affect the consumers? thatngers woman, i believe change is in out -- congresswoman, i believe the changes in our funding that would lower the fu