and i notice that the fdic and the fed had a joint letter relative to the living wills.say in fairness senator warner was far more focused on the living wills and i appreciate his efforts in that regard. but i notice that you had a joint statement and then what happened after that is the fed backed away from that. and wrote something separate from the joint letter that really watered down, if you will, your concern about living wills. which created a concern for me, but i know there's a process that gets put in place if both of you agree that they're inadequate and therefore by stepping away, that has been watered down to a big degree, and i'm just curious as to why that took place and both of you might want to respond to that. >> senator, i didn't see any watering down of the impact of the letters that we agreed on and jointly sent out. what we jointly agreed on were the measures that we actually want the banks to take in order to become more resolvable, which i think is the object of this entire exercise. and so far as i could determine, there was substantial convergen

we have supervisors from the fed and fdic in the institutions right now.l be a process of what are you going to do about this and wanting to hear in tangible terms what it is they are doing. i know at the fed and fdic, the boards will be briefed on this so we will be in a position to give indications that this is what we expected or you guys are already falling short. i think what laid behind your question was the concern next july we get into whether progress is significant or not. >> we are not going to be back here a year from now having this conversation again? you are prepared to demand they take measurable steps. if they fail to do so, you are going to use your tools to take them for them, is that right? good. thank you. >> thank you, mr. chairman. >> senator, shelby? >> i want to follow up on senator warren's observations regarding the justice department and criminal activity and financial institutions or whatever. i realize that you are regulators, you are not prosecutors, but if there's $35 billion more or less in fines and settlements because of

the former share of the fdic and senior advisor at the pugh charitable trust. >>> this week op "real money," scots go to the polls. we follow the polling and the for and against economic argument for leaving the uk. >> and petro porashenko and new sanctions targetting his country. that is the show for today, i'm ali velshi, thanks for joining us. >> a new episode of the ground breaking series, edge of eighteen growing up fast... >> my quest is to find me, and me is not here... >> fighting for a better future >> if you gonna go to college, you gonna end up dead on the streets... >> life changing moments >> i had never been bullied, everyone hates me... >> from oscar winning director, alex gibney, a hard hitting look at the real issues facing american teens. the incredible journey continues... on the edge of eighteen only on all jazeera america >> on america tonight, the weekend edition, the blade runner's biggest challenge, after a lifetime of racing through hurdles, olympian oscar pistorius faces a trial he can't run from. >> i fired four shots at the door. my ears were ringing. i co

the former share of the fdic and senior advisor at the pugh charitable trust. >>> this week op "real money," scots go to the polls. we follow the polling and the for and against economic argument for leaving the uk. >> and petro porashenko and new sanctions targetting his country. that is the show for today, i'm ali velshi, thanks for joining us. you are at the "listening post" scratch at any big story in london and you will find a rupert murdoch angle. so, it is with the scottish referendum. one reporter ran his copy by the cia before it went into print. we look at what goes on at the obituary disk before it goes bo

the former share of the fdic and senior advisor at the pugh charitable trust. >>> this week op "real money," scots go to the polls. we follow the polling and the for and against economic argument for leaving the uk. >> and petro porashenko and new sanctions targetting his country. that is the show for today, i'm ali velshi, thanks for joining us. ♪ >> announcer: this is al jazeera. ♪ hello and welcome from the head quarters in doha and coming up, in the next 60 minutes, french jets starts surveillance flights as they meet in paris to discuss the islamic state threat. the task facing a new u.n. mission in the central african republic. money on oil, will it mix with an independent scott land, three days ahead of the

i called the bank that turned me down after the fdic pulled the list. and it didn't make any difference to them. >> brian what about you. businesses in the community that are targeted like this? >> it is important to remember that my business, pawnshops was not on the list. the only thing i do, i deal in antique currency and vintage coins and somehow that is considered high risk. i don't understand why, but i would just like to see the attorney general come in to my store and see my customers and my store and where it is at and meet me and then tell me to my face, you are high risk. i need to put you out of business. >> so what. that is american enterprise and if you don't make it, you don't make it. it is your decision to go in to and bes not the federal government's decision. my gosh apple computer would not have existed if they looked at steve jobs in the garage and say he would not make. it i am outraged. and i really appreciate you being here and this is what i want to ask. if you are a business owner targeted by keep out of his church. we'll have

there's a question as to whether -- i think the difference was whether the fdic made a determinationoncredibility of the letters that had been submitted already, the feeling of the board was that there are obviously shortcomings that's why we wanted to get these specifics out. but we also thought that it was important to go through another stage of the process that had been laid out in red and i think it's contemplated by the statute because that is after all the object here is to get us to the point where the firms are resolvable in bankruptcy as well as under title ii and as you will note in our statement, the fed statement and also in the letters, if the firms are not able to take the steps that we have jointly indicated they need to take by next july, the agencies will be prepared to take action under dodd-frank in order to enforce those provisions. and so i think by doing that, by being as specific as we were, i think we should put to rest any complaints that there wasn't enough guidance from the agencies along the way. i think the guidance is out there now and it's quite explic

what we see, you know, just last month, the fdic removed 'list of high-risk merchants.hat list of merchants was about 24 different merchants that they had identified as being, you know, ripe for consumer fraud. well, what that was -- that was not a backing off of this program. that was a doubling down the this program. that was them taking any kind of certainty that the banks had, taking that away, so that now the banks have to be the morality police. >> sandra, do you know of other businesses in your community that have been targeted like you have? >> i really don't know. i do know that a lot of businesses are not aware of what's going on, because i called some businesses, even some gun shop owners. i do know what brian was speaking of, basically what happened, i called the banks that turned me down after i learned that fdic had pulled the list. i still didn't have any love. it didn't make any difference to them. >> same thing? >> none that i'm aware of, sir, but it's important to remember my business pawn shops wasn't even on the list. the only thing i do on the is de

but overall, this is interesting, as of last year, according to the fdic, this is the total amount ofs collected by commercial banks. they have actually been in decline since the peak in 2009. the fees have dropped since 2009. overall amounts bank chars by 21%. even though the atm fee goes up for the individual, people are being smarter at being a customer, using apps and they, would rather buy a latte than hand five bucks over to a bank. shannon: we have to do our homework. thanks very much, dagen. good to see you. eric: thanks, shannon, dagen. here are brand new stories we're working on for the second hour of "happening now." the mystery respiratory illness affecting kids in states and could the be a link to the virus and reports of paralysis in kids of the? we'll take a look. >>> president benjamin netanyahu will speak to the u.n. his warnings about iran, we'll carry his remarks live here on fox news channel. ♪ want to change the world? create things that help people. design safer cars. faster computers. smarter grids and smarter phones. think up new ways to produce energy. ♪ be an

head of the fdic. we regulated the community bank and it is fragmented. a regulator for the community bank, the holing companies and for the big bangs and investment banks. it does spread around accountability. the dodd-frank through created the financial stability oversight council which brought these together and gave them collective accountability for this. i think that's age important improvement in the regulatory structure. look. it's up to banks to responsibly manage their institutions. regulators should not have to do that for them. the first line of responsibility is the banks and the people at the banks making the lending decisions. some are finance companies, too, i might add. it is not all banks doing this lending. >> sure. >> the finance companies, you can find sometimes that the standards,a little bit -- can be a little looser than these regulated institutions where you have examiners looking at the loans. >> i was speaking to deborah right who runs car ver bank in harlem. she told me something that a lot of bankers have told me: it no longer

and as a result they have no protections but this will offer those folks, they're going to have fdic insurance. if this thing goes belly-up they will be made whole by the government. i think that's a good thing. >> well, you're absolutely right, gerri. let's look at the big picture. long term, if you will build wealth or achieve any measure of financial security you have to be part of the banking system. this is going to be that entry point or reentry point for a lot of people and that is a good thing. gerri: so they will have, they already have check cashing, money wiring, bill payment. this will be, this will be checks. now here is my only concern about this. green dot is their partner and you know, once you get past today's headlines and start doing a google search on this company you realize there are lots of issues with green dot. tell us what the problems have been? it looks like bad guys have used green dots for their nefarious purposes. >> i'm not aware of that. you know, i mean i think that, you know, look, they have, their specialty has been type of mobile, type accounts, p

credit history,ok meaning walmart coul be bringing a product for some 43 millione1 americans that the fdicther under-banked or have no accounts. walmart will make go-bank the latest of a growing number of financial services they provide k÷sheir customers, services lik check cashing, wire transfers and bill payment.e1 like thee1 products on its shelves, walmart prices their financial services below rivals giving clh!sjf another reason o hopefully stop and shop at their stores. >> customers who engage in our financialjf services tendw3 to it more convenient to use the one-stop shop of walmart. and will end5a up not only conducting their money services with us but tp[ going on and filling a basket according to their needs. >> as for walmart, any boost in sales will be welcome, thelp retailers struggle as the)kd low-income clients keep a tight e5(jz on their wallets even as the economy shows expansion. >>> another dow component making news today, home depot on now showing up on credit cards at the retailer.çó amon t(javers has more. you know, amon i was surprised to hear the breach was even m

they have fdic insurance already.e offering these really interesting accounts because there's no minimum balance, that's a big one. no credit check. just to be 18 years old with a legal id. wal-mart is hoping those people who left and gone to dollar stores comes back and spend the savings in their stores. >> the government is letting this happen for now. what are they watching out for. >> i think there's a big question whether wal-mart is trying to side step the regulators. in other words is green dot the company that's offering these services or is wal-mart. government's going to be keeping a close eye on this. there's going to be consumer protections that come into play. but i think this is probably going to go through and it could lead to more stores like wal-mart introducing banking services. >> jill, thank you very much. >> thank you. >> still ahead here, american football getting a foot hold in britain. plus januvia, by itself, is not likely to cause weight gain or low blood sugar (hypoglycemia). januvia should

we'll not see runs on banks because of fdic insurance.mber two, we've gone off the gold standard. and the gold standard was always a severe discipline. a lot of people, if you were on the gold standard, you were forced into a depression from time to time. if you go off the gold standard you can print your money. you can do a lot of things to protect yourself against a great depression. number three is big government. he argued the keynesian argument that government is big and provides a lot of built-in stabilizers. in other words, during a great depression you get unemployment insurance. you get welfare. that keeps the economy going and pumping money into the system and so forth. and so it's a built-in stabilizer. and last, but not least, he said the fed has learned its lesson to inject liquidity if there's ever a crisis in a collapse in the economy. so for those four reasons, we will never see another great depression in our lifetimes. and i asked him about this article from time to time as we knew each other in the '80s and '90s when we

>> green bank, the company that is teaming up here with walmart, is fdic insured so that's not the redthink but there's a red flag and mentioned earlier talking about consumer who is are really living paycheck to paycheck if they even have a paycheck and so rather than really have a plan on how much they should spend and put away, they go into the bank. walk up to a certain area of the bank to a kiosk or something and get a go bank card. get the starter kit for $2.95 and then they have a checking account and then they can use it on anything that they want and whether or not they're really going to be able to be disciplined with this type of availability for checking, yes, we want them to be banked but i don't know if it has the same type of financial education type tools that say a community bank would offer or a credit union. >> just people know the company sharon's referencing is up 25% today on the news, erin. >> that is my biggest concern because when you look at the potential revenues, you know, 10 million households without a bank, say assume 1 million of them take this opportuni

look at lending, lending to big business has recovered somewhat but small business, according to the fdicill at prerecession levels. what's going on? >> we have a recovery but it's not even and small business once again is lagging. and you know because you and i talked all during the years of the recession that small business got hit extra hard in a financial crisis like the one we had, small businesses just got crushed. and we did a lot of things when i was at the sba to help them, but now when i look at it from a position at harvard business school and really take apart the data, they aren't fully recovered. so what's to be done about it? well, it turns out that some of the pressures are what we call structural. they're not going to change. community banks which really have been the backbone of lending -- in all these community bank failures where the small business had a relationship with their banker. >> right. you know, if you went into a bank and you went for a loan, you had a banker who knew your business and there were all these intangibles that the banker knew about you that woul

the fdic only has money if they get it from the feds. so if we have an increase in interest rates, the banks would fail and the government would have to default on its debt and the country will implodes. that is why the federal reserves can talk about raising interest rates in the future but they are never going to do it. when the feds first did qe and said it was temporary i said no it isn't. they will do it again i said. and they did do it again. i had qe2 and i said there is going to be more qe's than rocky movies. it is never going to end. it can't end because it can't work. whenever the federal reserve does qualitative easing they worsen the problem. so the more they do the more they have to do. the more drugs they give to the economy the more drugs the economy needs to stay high. i said it was like a monetary roach motel. once you start it, you can never end it. every time the feds tried to end it in the past they had to come back. they tried to take away the mor phene and heroin. they saw the patient going into the seizures and sa

>> it goes to the fdic, you name it. >> i have a hard time believing that if dodd-frank was repealed tomorrow, that all the banks would not charge the fees pl. >> i would think billions and billions of dollars in fines, banks do have to find a way of paying for that, too. >> what is the alternative, you don't fine bad behavior? >> do you think there is a correlation between all the fines and the fees and the higher fees? >> you love when i get snitty with you. but, yes, the fines and fees will continue because banks are allowed forget away with it. >> airlines are allowed to get away with it. regardless of the motivation, i am saying that once it starts, it doesn't stop. with the airlines, it started with pillows and blanket and soda and then it extended to where you sit on the plane and whether you're in a good mood. so i think it started. >> look at the trend of how people are willing to pay the automation of so many different fees. it is unlikely that even if regulation -- >> so they got a taste of it and they want more. >> it is certainly possible. >> if you make a consumer produ

and the fdic is reporting these fees only make up about 14% of banks' income now. comes after the federal reserve put new regulations in place to protect consumers from overdraft charges as well as let's just pat ourselves on the back here, my friends, more americans paying closer attention to their balances on their smartphones. now, before you start feeling bad for the banks, they still earned more than $40 billion just this past quarter, and free checking has still gone the way of the dodo, but every little bit helps. >>> well, let's move on to the economy. despite an increase in jobs and a decrease in the unemployment rate, american consumers are just not spending their money the way they used to. here with more is moody's chief economist, john lonski. welcome back to the show. >> thank you. gerri: consumers spent an average of $94 a day in august, that compares to july with $94 a day. basically, flat. now, many of the reports about the economy are positive and upbeat. why respect consumers spending? >> well, you know, in the good old days when we had the unemp

that is according to the fdic: this were 94,725 branches as of june 30th.osings has accelerated in the past year as banks increase mobile and online services. and check out mcdonald's latest menu edition, hamburger straight out of gotham city. like its name sake, the batman burger is steeped in mystery. theme burgers appear to be lurking in the wings, but for now they're only available in hong kong. that is the latest from the fox business network, giving you the power to prosper. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us. melissa: the intelligence community is not too happy about the president blaming them for underestimating isis on prime time tv. house intelligence committee chairman mike rogers says they've been warning the president about the isis threat for more than a year, not that the president would necessarily know. the government accountability institute

and i looked over at the new york bank examiner and the fdic bank examiner and we sort of, you know,r and we said, yes, we did. we did hear that. >> the leaked tapes show regulators suffering from what is called regulatory capture. where those charged with investigating banks show undue deference and try to soften critical findings. here is one example. >> we don't want to discourage gold man from disclosing these types of in the future and therefore maybe some comment that says don't mistake our in-give differenceness and our desire to understand more about the marketplace in general as a criticism of you you as a firm necessarily. >> in a statement, the new york fed categorically denied the allegations. joining me now is editor and chief of vox.com ezra klein. those aprils are not a good thing for the new york fed. >> no, they're not. although so what, right in the new york fed is a pretty insulated institution. the head of it as with most feds is appointed with a certain amount of input from the banks. so something going on here behind the question of simply the tapes is the level

we are relying on the fed and the fdic to look at the situation and make a decision. that makes us uncomfortable. we like laws and to be able to negotiate. >> should we take comfort in that, these guys are more involved? should we be concerned that they are moving the goalposts? >> if you were to leave it to congress, nothing would get done. >> i'm fine with somebody in washington ratcheting up slowly -- donemebody is getting work on that front. talk about getting stuff done, goldman sachs getting an expanded role in the alibaba i feel. -- alibaba ipo. the stabilization agent, in charge of overseeing early trading. investment banks wanted this role because of the prestige and the fees that go along with it. this is before the alibaba ipo, which could be the biggest in history. ago, there-- a year were a few people, there is this really big company in china. now it is the biggest ipo in history. alibaba as a suckling pig with an apple and is mouth. >> everybody is saying maybe i should not get in because there will not be money coming to my ipo. we'll keeop an eye on i

that is why as we do this investigation, we are consulting with our counterparts at the fed and the fdicas well as the sec because i think it will raise potential issues for them. >> there may be a london loophole that needs to be closed? a londonnot so much loophole. the way to think about is this -- we have global financial corporations that are active all over the world, but we are regulating this market through nationstates. no nation can regulate all the activity that occurs around the world. harmonious we need a global framework, and that is why we are committed to building that, but we will also work with bankingterparts in the regulatory agencies where we think that look, there is risk that may is beyond the risk of our authority that could affect the parents banking corporation. that may be something that they could address. >> and enforcement front, some in you inherited, the libor situation. the settlements there -- what is your sense about where the libor situation stands? will we see morris settlements, more action by your agency? weeksl, we did one a few ago, and we are sti

the fdic says the uk bank province did top 40 billion in the second quarter.e industry has been pressured by low interest rates, restriction on consumer fees and strong trading. rbs bought citizens back in 1988 in an attempt to expand its global operations. back to you. >>> here is a quick reminder of your headlines this morning. the uk prime minister warns islamic state militants in an exclusive interview with cnbc. >>> rbs prices lower. >>> and a report suggests the s.e.c. is probing pimco's small investor retail for allegedly investing returns. >>> top story this morning, the s.e.c. is reportedly investigating whether pimco artificially inflated the returns on a popular etf aimed at small investors. "the wall street journal" says the probe has been under way for months and bill gross, who manages the fund, has been questioned. kelly fratto, first, let met get your thoughts on this probe. >> anyone we look at how firms are marketing, especially with retail investors, we know ever since the financial crisis, they've had a big interest in pricing of securities

my staff also mentions that the federal trade commission, the department of justice, the cfpd and fdic also are looking into each and every one of those. so with tens of millions of dollars, countless agencies and individuals looking at each of these, the question is, miss tavenner, who's been looking at you? mr. wilshusen? in a nutshell, what you said in the beginning was, they didn't have strong passwords. so somebody could put in a short password and not change it, is that correct? >> that's correct. we identified several tactical security control weaknesses with healthcare.gov and supporting systems. >> so they didn't create a huge vulnerability -- >> if they used a weak password that could be easily guessed, that could be increased risk. >> so marilyn and her birthday, if that were used, would have been easy to guess, certainly would have been tried. did they have advance lockout systems in detection and reporting? >> one of the things -- i don't want to get too detailed into the security controls, so we don't give any -- >> we don't want to tell how weak it still is. so i will be

i was a part of at fdic the council for inspectors general for financial oversight. that's a part of dodd frank, but in the law that requires the agencies that are in the financial oversight business for those igs to come together, talk about reports and do some joint work. so i think there is a growing understanding. we start to see some of it in legislation that there's need for coordination between igs. my experience is, when we get in the same room, we all have more oversight to do than we have resources to accomplish it. so it's not very often that there are really jurisdictional squabbles. the jurisdiction is broad enough in a whole for all of us. it's just like we need to sit down and say i've got this lane, you've got that lane and let's move out. that's i think we do a pretty good job of that. it can always be better but i think it is pretty effective now. >> got time for one or two more questions. last chance? all right. please give our panel an applause. >> i want to thank our online virtual listen ers and thank everybody for attending today's session. tha

staff also mentions that the federal trade commission, the department of justice, the cfpb and the fdiclso are looking into each and every one of those. so, with tens of millions of dollars, countless agencies and individuals looking at each of these, the question is, ms. of aener, who's been looking at you mr. will shoeson, in a nutshell, one of the things that you said at the beginning was they didn't have strong passwords, so, somebody could put in a short password and not change it. is that correct? >> that's correct. we identified several technical security control weaknesses with healthcare.gov and its supporting systems. >> so, somebody who didn't change the password created a huge vulnerability, particularly if they had a high level of access, is that right? >> if they used a weak password that could be easily guessed, that would be an increased risk. >> so, marilyn, her birthday, if used, would have been easy to guess, certainly tried. did they have advance lockout systems and detection and reporting?bg1] >> one of the things, i don't 0 them and a lack of redundancy on passwor

the fdic only has money if they get it from the feds.o if we have an increase in interest rates, the banks would fail and the government would have to default on its debt and the country will implodes. that is why the federal reserves can talk about raising interest rates in the future but they are never going to do it. when the feds first did qe and said it was temporary i said no it isn't. they will do it again i said. and they did do it again. i had qe2 and i said there is going to be more qe's than rocky movies. it is never going to end. it can't end because it can't work. whenever the federal reserve does qualitative easing they worsen the problem. so the more they do the more they have to do. the more drugs they give to the economy the more drugs the economy needs to stay high. i said it was like a monetary roach motel. once you start it, you can never end it. every time the feds tried to end it in the past they had to come back. they tried to take away the mor phene and heroin. they saw the patient going into the seizures and said

when it comes to just recently we find out that he asked -- the fdic who handles the banks is now doingration crash on businesses to lock up their business account and literally not allow them to you have a bank account, that is how far the democratic artie has gone. when you look at benghazi, when you look at the cia, when you every one ofsa, these institutions is an indoctrinated by the democratic party. host: let's get a response. energy production is at an all-time high. oil production is booming. we are considering exporting natural gas for the first time in years. gas is in fact dropping. it will continue to drop. i think benghazi is a phony, made up controversy. i have high regard for the intelligence community. -- explains a tweet the rise of the investor class over the worker. guest: i am not sure i agree with the fundamental premise of that question. let's take a look at north dakota talking about energy. an arctic gutty do not need a minimum wage of $11 because a average person can walk into a mcdonald's and make $14. that is what is happening when you have a vibrant economy.