the fdic is funded by deposit insurance premiums. we look here at the banking system in puerto rico. you have four banks listed here that were puerto rican headquartered and we have numbers on banks operating there was citibank of course been a major participant in scotia bank which is a canadian parent. you'll notice number one geezer numbers as at the end of june 30 last year. durell banks failed this year. here's four of them over the last four years. the number the lower right-hand corner comes $6 billion is the amount of estimated lost the fdic has taken in those failures. this is a subsidy from u.s. bank a deposit insurance premiums to protect depositors in these bangs, not an insignificant amount of money. in terms looking at the puerto rican banks in addition to having the insurance protection which meant no on the banks can also borrow thingy too from the homeland bank of new york. consequently the puerto rican economy is not held back by weak banking system as is the case in greece that likely will continue. pardon my voice

hanging at fdic. party central. >> bank regulation with the fdic is where it's at.d. senator elizabeth warren, you guys are often put together that the two people that are most forceful. she sent a scathing letter to mary jo white criticizing her work there what do you think about her tactics and how she deals with regulators some of whom you clashed with many times behind the scenes. >> well you never know what may have gone on behind the scenes before these public statements. it may be there's been a frustration level that she's tried behind the scenes and hasn't gotten anywhere. i can relate to that. when i was chair of the fdic getting more robust majors to preserve homeownership and modify loans, for months i tried do the inside game and couldn't. that's when i went public. so we don't know what's going on behind the scenes on that. i think she's doing what she thinks is right i will say in mary jo white's defense, i think s.e.c. is hard to run. i do. there have been issues there, morale issues motivational issues and that's a problem that needs better attentio

. >> formerfordformer fd fdic chair see la bair. have a great weekend. i'm ali velshi. i'm ali velshi. >> cyber-threat. security experts say all signs point to china after a passive breach of u.s. government information. >>> fighting i.s.i.l a growing chorus calls for a riskier but potentially more effective strategy. friendlier skies. the obama administration proposes the first rules that would force airlines to follow emission standards. and operation overboard. an unusual plan to scare sea lions away from one oregon town has a soggy ending. good evening i'm antonio mora. this is al jazeera america. china insists it was not involved in hacking us government computers. personal information was stolen from as many as four million federal employees. the obama administration has not formally blamed china but there is overwhelming evidence that hackers in china is behind one of the largest thefts of government data. senior white house reporter mike viqueria has more. >> the question is who did it? multiple reports say china and while the white house won't point the finger

. >> formerford former fd fdic chair see la bair. have a great have a great >> on my honor, i will do my best. it's the way every boy scout and scout leader begins the official oath. two years ago, the century-old organization relaxed its ban on gay scouts but not on adult volunteers who supervise them. recently, the national president of the boy scouts told the group the country is changing and the ban on gay leaders should be lifted too. those fighting the change question whether gay men and women can be as the scout oath promises morally straight it will scout's honor is tonight's story. ♪ ♪ ♪ >> welcome to "inside story." i'm ray suarez. boy scouts are central figures in american culture. over the last 100 years you've seen them everywhere, on public service projects in norman rockwell paintings marching in 4th of july parades and marching off to the woods to like and camp. i know because i did it. yeah that's me on the left. i've been involved with scouts in various capacities for most of my life and count the experience as one

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. >> formerfordformer fd fdic chair see la bair. have a great weekend. i'm ali velshi. i'm ali velshi. >> cyber-threat. security experts say all signs point to china after a passive breach of u.s. government information. >>> fighting i.s.i.l a growing chorus calls for a riskier but potentially more effective strategy. friendlier skies. the obama administration proposes the first rules that would force airlines to follow emis

. >> formerford former fd fdic chair see la bair. have a great have a great >> on my honor, i will do my best. it's the way every boy scout and scout leader begins the official oath. two years ago, the century-old organization relaxed its ban on gay scouts but not on adult volunteers who supervise them. recently, the national president of the boy scouts told the group the country is changing and the ban on gay leaders should be lifted too. those fighting the change question whether gay men and

hopefully, that gives you some additional context >> it does matter separated commercial banks that are fdic insured from even syndicating some of these deals because they can hold on the books at all? >> they can originate it. the fact that most banks like to syndicate series almost every -- decent sizes indicated. a lot of the syndication partners are either other commercial banks were collateralized loan -- [inaudible]. lot of the clo's are having hard time finding supply from the bank because the banks simply undoing those deals anymore >> very interesting point president but because you than about cpi and the purchase of ge. it is all mother discussion about plans and try to find return, but when you look at the market any other pension plans and almonds out there, who are the other one or two most interesting plans the best performance and what are they doing? where they looking for jones? >> in terms of private equity of course. >> sure. we have done comparison compare and contrast exercise with you and others. what you are heavy on his venture capital. that is really paid off for you

it seems like the ecb is turning like the fdic. the federal depositors insurance corporation.hey insure all our bank accounts to a

fdic insured failed institutions. my friend institutions. my friend the chairman was talking about this recovery and why isn't it bigger other than the fact we have 13 million new jobs. pensions at all-time highs. but under republican administrations -- and between 1980 and 1990 we had the reagan administration and the 1st george bush administration look at the number of failed institutions. then it falls off to virtually zero. no bank failures. then under the 2nd george bush we see a tremendous spike. so now it is falling off precipitously. here to talk about the f soccer and dodd frank and putting some structure back in the market so that we don't have a failed banking system. would you like to comment? >> you talked about the improvement in the economy. the graph illustrated. so does the number of people working every day. i think that the -- there is no doubt that the steps we have taken through wall street reform have made our system safer and we have the economic recovery underway which is why everything is getting better. better. but

highlights with regard to the run on the banks in greece is that europe does not have the equivalent of an fdicthey don't have a pan-european banking system. and this -- liz: hold on, let me interrupt. the alpha bank of greece is now worth seven cents a share. john, i'm looking at that, and who cares whether anybody's invested in that. it's more of what happens when there is an exit. the economist has an headline, it's a process, it would be slow and people would be able to absorb it. do you believe that, or will it cause major gyrations in the global markets if and when it happens? >> well, as i said before, i think greece very likely will leave the euro which in itself is dangerous enough, because that sets a precedent for countries like spain, portugal and italy. and if the euro ends, it'll be a severe blow to the european union. but nothing like the severe blow to the european union and nato that would be the result of russia or china financing greece. and so then moving towards those two countries is unacceptable, totally unacceptable to the the european union, and they just have to scrabb

in discussions with the fdic in the follow-up hearing to the report they admit doing this. they put in place a number of provisions in a bill i'm offering -- mr. fattah: is there legislation coming forward? mr. luetkemeyer: that's what i was getting to. as a result of this report i have a bill coming up later on this month for hearing in committee. the fdic has put in place many of the same provisions of the bill already as protocols for them on operations how they handle situations like this. and so i think we're making progress. the problem is that d.o.j. is -- has flipped the model of using a bank law that banks use to protect themselves against fraud to now use that bill -- that law against them. as a result we need to stop that. that's part of the bill as well. mr. fattah: let me reclaim my time. i appreciate you answering my question. so what i hear is you held some hearings, you have legislation that you're making progress and that administration curtailed some of these practices that you're concerned about. however, you would still like to proceed with this prohibit

probably not going to put their life misstates the evidence bankrupt bank, particularly if it's over the fdicmount. so there's more complex here than the sound bites and i think as we get into the second and third quarter of the campaign, people ask put some meat on the bone. . neil: yeah, if everything hits the fan, what would you propose doing in that event if you were the president of the united states. thank you very much, governor. we are awaiting to hear what some of those other candidates plans for the. institutions because some of them. hillary clinton leads two times this week, we are told other candidates following suit and others saying that this has not gone far enough and are got to be much more aggressive. and when it comes to food stamps about, do we have to be much more aggressive who gets them? a sign of fraud that is now running rampant. nearly 100 million are on food supporter. do you think they all deserve that? what does that say about the united states and this recovery if they are all getting that? the fraud side of the story you are not hearing, but you should. and you

because of fdic insurance on deposits which the whole thing goes under, they would be. if you want to be a combined thing, here's the free market way of doing it. you don't get your -- deposit. >> let me ask you quickly on this. before if bank of merck were in trouble wouldn't we rescue it? >> that is at the heart of her criticizing here, and if you break them up, theoretically there's a way of doing this, the commercial bank with the federally insured deposit which we owe people want that up to $250,000 that means just about everything that they have, you know that bank dunts take the risk. that the security's firm does, and this one holds less capital that one holds war. and we're not on the hook for this one. >> but we technically are. the way things are now. >> when they're combined question of to. things go under it is armageddon had this argument before. if you can't use your credit card and credit sea sup can't get a paycheck because fox cannot rollover comerl paper that was happening in 2008. that is the end of the financial system and that could happen. >> spea

and the fdic announced it would rescind its list of so-called high risk measure chants and that move seemed to be an apparent recognition of the fact that operation choke point is wrongfully inflicting collateral damage on legitimate businesses that are losing access to financial services. but despite this acknowledgment and admission from those at the top companies across my district tell me that the administration's foot soldiers on the ground simply haven't gotten the message yet. the harassment is continuing and this is simply unacceptable. mr. speaker, we should stand up for the rights of every american. i'm saddened to see a president who is so out of touch with what has made this country great, who is so out of touch that he would use an army of unelected bureaucrats to attack businesses that don't toe the ideological line with his administration. congressional oversight demands that we refuse to step aside, that we refuse to let this unprovoked attack on our constitutional and fundamental rights go unchallenged. mr. speaker i will continue to stand watch against this overreac

generally require general legal authorization, just like banks didn't need to ask permission of the fdic to add protection to their bank websites. indeed longer term i think we need to reverse the discussion, namely what obligations to various participants have to protect that information. >> right. i think that i'll follow up with the fcc and make sure but i'm hoping that along with the clarification that there is no barrier to the common carriers' efforts to help consumers block this call, that they would also do what they can to enoccur an this encorruption possibility because i think it is a two-fold problem. one, making sure the caller i.d. is who it says it is, and two being able to block the calls. deputy attorney general, i know your office has done great work in this area and i know you've banned 28 telemarketers, but i'm -- as you know, i'm an old prosecutor. aren't we going to have to start putting some people in jail? the people that are doing this the reason it is whack amole is because they don't fear any authority at this point. they are fearless of authorities. if we bega

fdic insured failed institutions, you see that?my friend the chairman was talking about this recovery, and why isn't it bigger, other than the fact we have 13 million new jobs, we see pensions at all time highs. but under republican administrations, i think between 1980 and 1990, we had the reagan administration and the first george bush administration, look at the number of failed institutions. you see that. >> i do. >> it falls off to virtually zero under the clinton administration. there were no bank failures, you see that? we see a tremendous spike in failed institutions, you see that? >> so now it's fallen off precipitously. we're here to talk about the fsoc and about dodd frank and putting some structure into the market so we don't have a failed banking system. would you like to comment on that? >> i think that you have talked about the improvement of the economy in a compelling well, obviously the graphs illustrated but so does the number of people working every day. i think there's no doubt, but that the steps we've taken t

there was a former fdic chairman named isaacs that came to the hill with the support of many economists said please don't get into this socialist activity where you partner, government partners with private business. don't do that. certainly not for $700 billion. there is no justification. look, we probably got more than that, clearly have more than that that american individuals, american businesses have overseas and banks they'll never bring into the united states. they already paid a massive amount of tax on it overseas. a far better free market approach would be just pass a bill that says you want to shore up the -- any aspect or any entity like goldman sax -- goldman sachs chrysler g.m. you could have saved any of them if you just said bring that money in from overseas no tax, and we could have made it very attractive to do that, then we wouldn't have to give the government $700 billion with basically no limits on how the secretary of treasury could spend his money. he couldn't prop up a central bank of a foreign government, but i read the bill. i couldn't believe we were going to

the commercial bank is essentially taxpayer guarantee because there's fdic on any deposit up to $250,000every deposit. the taxpayer on the hook then is $3 trillion worth of deposits at j jp morgan if they go under and this bond market and all the crazy stuff and blows up the bank, which is almost what happened in 2008, they have to bail out -- the taxpayers are going to have to put up $3 trillion that's more than three times the package in 2009 . stuart: yeah. >> this is a serious issue. her prescriptions are crazy but what she's drawn attention to is a real problem. now, the question i had is why isn't paul ryan and all these republicans coming up with free market solutions to this insane problem that we have? there are concerns that are doing it. i've read about this. people at aei have written about it, and heritage. this is a real problem. they're going back on their morals saying going back on their word. it's not a free market, when you insure the deposits, it's not a free market . stuart: now, there are accusations of sexism against jamie because it was man explained to a woman ab

fdic insured failed institutions. my friend institutions. my friend the chairman was talking about this recovery and why isn't it bigger other than the fact we have 13 million new jobs. pensions at all-time highs. but under republican administrations -- and between 1980 and 1990 we had the reagan administration and the 1st george bush administration look at the number of failed institutions. then it falls off to virtually zero. no bank failures. then under the 2nd george bush we see a tremendous spike. so now it is falling off precipitously. here to talk about the f soccer and dodd frank and putting some structure back in the market so that we don't have a failed banking system. would you like to comment? >> you talked about the improvement in the economy. the graph illustrated. so does the number of people working every day. i think that the -- there is no doubt that the steps we have taken through wall street reform have made our system safer and we have the economic recovery underway which is why everything is getting better. better. but

i know it fdic is involved in a case like this involving a program called trailblazer where they have huge amount of money to build a program, we'll go over budget, will not work and after they have to cancel it because they have given up, they initiate a successor and the same company will get the contract. not to impugn motivations much but if you look at the most fierce defenders of intelligence activities and congress, they tend to be the biggest recipients of donations from intelligence contractors. you have a powerful axis of companies that profit from the expansion of surveillance and have access to legislators to encourage the expansion of surveillance programs and play up the effectiveness of surveillance programs that may be questionable. she mentioned the fisa court. the foreign intelligence 11 judges elected entirely by john roberts. that is a unique situation. in general, we know federal courts judges are appointed and confirmed by the legislature whereas the fisa court is 11 people chosen by the chief justice of the supreme court. some folks have pointed out that tends t

and there was an fdic former director named isaacs and he came and he had a lot of economists' support. he had a great free market solution. and people were excited when that happened. i know we had people clapping today. just like they did when obamacare passed, a lot of people clapped when obamacare passed. and then they got defeated in the next election. so they're not here to clap for this one. but -- and there were people that clapped for the wall street bailout passing. some of them didn't come back because the people could see this was not a good way to go. now, one of the things i love about being a republican is basically as conservatives we're optimists. you know we think things can get better. that's why we're here. i know we've worked so many times together and we both, that's why we're here, we want to make things better. we think we can. we've got a slot at making things better. -- shot at making things better. but at some point you at least have to take notice of the old washington saying that no matter how cynical you get here in washington, it's never enough to catch u

acknowledged that it was wrong and agreed to stop the program, the fdic agreed to stop as well.hearing stories to this day that it is still going on. my dad told me about a year ago wife been here three years at the time, he said you want to know the difference between government? he said when i was your age you might not like what the government did but it didn't occur to us to be afraid of the government or might be targeted for wra we believe or what we think or do for a living because that's what's different now. people are afraid of their government. if you are home tonight and watching this and running out to an ammunition store in union, south carolina, you are afraid that the government is going to put you out of business. and that is a dramatic change mr. speaker, and not a change for the better. men and women who come here tonight, like mr. walker, can tell people, we think it's wrong, too and heard what they had to say back home and they are not alone and men and women here in washington who are outraged and dedicated to making sure that when our time is done, they wo