if the banks failed to do that, the fed and the fdic have the power to reduce the risks posed by these giant banks by for example raising capital standards or stricter leverage. these changes are critically important to avoiding another 2008 crisis. but the banks are unlikely to make them unless they believe that the fed and the fdic are serious about enforcing dodd frank. now i know by law you must consider increasing capital in higher level ratios. what i want today is to ask, can you commit that if any of these giant banks failed to resolve the problems in their living wills by october 1 that the fed will use the tools that congress gave you to reduce the risks posed by these too big to fail banks? >> we would have a very serious review of the living wills and we have clearly stated a set of well identified changes that we want to see by october 1. now the decision about what we do if those deadlines are not met, those are decisions that my colleagues and i will need to look at very carefully, what is the appropriate sanction for doing that, but clearly we are very serious about wan

we will work closely with the fdic as we have been all along. but we are extremely serious about wanting to see progress and will consider using those tools. >> you are required by law to consider them. what i'm asking for is a commitment here. i have to say i don't fully understand why you would not make that commitment. these banks have known this was coming since dodd-frank was passed in 2010. that is six years ago. and they have been submitting living wills since 2013. there is no provision in the law for all of the extensions that you have given them so far. if any of these banks fail to credibility test on their fifth try, they need to face some real consequences. otherwise why would they ever make changes if there are no consequences? >> well there will be consequences. so.ell i very much hope when you found that these five banks have submitted living wills that were not credible, you were saying quite explicitly that each of these banks remains too big to fail and if anyone of them crashed they would risk taking down the whole economy un

and in addition we have listed jointly with the fdic a large number of specific shortcomings that the firms have until the summer of 2017 to remedy, and we will be evaluating whether that is done. as i said, if the deficiencies are not remedied or later if the shortcomings are not remedied they could turn into deficiencies that would provoke us to lead us to impose higher capital standards or other, you nknow know, other remedies on the firms. we have learned a lot in the course of the years that we have been evaluating the living wills about what it take takes to actually resolve a firm in bankruptcy. the firms have learned in the process, and i do believe that we have made substantial advan e advances in doing that. >> and first to my questions, first n terms of the new york times' quote to prop up the larnl estebanks, you would not categorically refute that possibilit possibility? >> i would not say at this point that the all of them are prepared for resolution under bankruptcy. >> and again, if they don't get are there for october 1st, soon thereafter considering something more sy

i am concerned about the level of disagreement between the fed and the fdic. i will take it for the record. sen. heller: i want to go back to grexit for a minute. you mentioned it in your opening comments. you said the u.k. vote to exit european union's has a significant economic repercussion. could you go more into detail andt what that means perhaps with the plan of attack with the feds are in the last two days from now? i. yellen: i said it could it would but ithat it could have significant economic theequences, possibly future of european economic integration, it would have negative economic consequences for the u.k. and more broadly speaking. i think the financial market would be unleashed by the fed decision and could sentimenta risk off that we would see him pass on financial markets, that we might other safeflows and haven currencies. i do not want to over 12 the likely impacts but we are aware of them and we will watch them as wensider those impacts make future decisions on monetary policy. is there any reason to believe that if grexit were to pass, i

it would be used by the fdic.ng a backstop that would be available if it were impossible to resolve these firms under the bankruptcy code. so we are insisting that firms put in place structural changes, governance mechanisms. vonnie: you are watching bloomberg markets. we are stepping away from janet yellen's q&a session with the house financial services committee. at a livew looking speech being given by donald trump in lower manhattan. gop nomineeive expected to take verbal swings at hillary clinton and her record as secretary of state. he is hoping to recapture the voters attention. focused onntly been questions concerning his internal campaign staff and campaign fund-raising issues. once again, donald trump in lower manhattan. we will go back now to capitol hill for janet yellen's q&a session. to continue watching trump's speech, you can find it on your bloomberg. fdic and the fed did not find their initial present living will a year ago to be non-credible. we did nevertheless identify a set of short comings t

and we will work closely with the fdic as we have been all along, but we are extremely serious about wanting to see progress and certainly we will consider using those tools. >> what i'm asking for is a commitment. i have to say i don't fully understand why you would not make that commitment. these banks have known this was coming since dodd-frank was passed in 2010. that is six years ago, and they been sunbathing linton wells since 2013. there is no provision in the law for all of the extensions that you have given them so far. if any of these banks fail the credibility test on their fifth trod, they need to face some real consequences. otherwise why would they ever make changes if there are no consequences? >> there will be consequences. >> i very much hope so. when you found that these five banks submitting living wills were not credible, you were saying quite explicitly that each of these banks remains too big to fail and that if anyone of them crashed they would risk taking down the whole economy and less makeup to cover bailout. the entire goal of the linton wells process is to

i'm concerned concerned about the level of disagreement between the fed and the fdic. i'll take that for the records others can get their questions. >> thank you. >> mr. chairman, thank thank you and thank you for being here today in this very informative. i want to go back to bracket and you also mentioned it in your opening comments. you said that that the u.k. vote to exit the union would have significant repercussion. can you go into detail of what that means and perhaps what the plan of attack what feds would do if it would pass two days from now. >> so i said it could come i do not know if it would, but i i think it could have significant economic consequences by launching a period of uncertainty both for the united kingdom and possibly on the future of european economic integration, most analysis suggest he would be consequences for the u.k. and spillovers to europe more broadly speaking. i think the financial market reaction to the uncertainties would be unleashed by that decision could result in a kind of risk sentiment that we would see impacts on financial m

williams isaac, senior managing director and chairman of the fdic which ensures every american's bank account. appreciate you being here with us. >> good to be here. >> so, are we at the point where this is sort of a short-term crisis here and you have the dow plunlg i6 00 points and then cooler heads prevail in are we at a point where the person takes over the fdic is starting to worry about an economic collapse or 2008 all over again? >> no, i don't believe we're in a person who's running the fdic would be worried about ab economic collapse on the basis of what has happened here. i think this is a a, this is a short-term reaction. i would be surprised if the market weren't up some next week. don't know, but it's possible that it would be. i think that the impact of this on the u.s. longer term is not significant. i believe this is basically an issue that the europeans are going to be trying to revolve. i don't believe it has major impact on the u.s. >> it's interesting you say you don't think it will have major impact on the ice because there's a lot of politicians here who think di

. >> reporter: but former fdic chairman sheila behr argued the 3% down wells fargo product is deja vu all over again. >> you have that really, really low down payment, even from a borrower's perspective, you're exposing yourself to risk if home prices dip. wells' home product may help some but the trend toward easing credit standards appears to be tape early off according to a new report from fannie mae. 90% of lenders surveyed said they were keeping credit standards about the same. for "nightly business report," diana olick washington. >>> still ahead, hitting the road. as americans drive more, they may be in for some unexpected sticker shock. >>> the obama administration was handed a major victory in its effort to increase oversight of broadband services. a federal appeals court ruled that the federal communications commission's net neutrality rules will remain in effect. that means phone and cable companies must treat all of the traffic on their networks equally. no blocking or slowing their competitors and no fast lanes for companies that can pay more. opponents of the rules plan

i'm concerned concerned about the level of disagreement between the fed and the fdic. i'll take that for the records others can get their questions. >> thank you. >> mr. chairman, thank thank you and thank you for being here today in this very informative. i want to go back to bracket and you also mentioned it in your opening comments. you said that that the u.k. vote to exit the union would have significant repercussion. can you go into detail of what that means and perhaps what the plan of attack what feds would do if it would pass two days from now. >> so i said it could come i do not know if it would, but i i think it could have significant economic consequences by launching a period of uncertainty both for the united kingdom and possibly on the future of european economic integration, most analysis suggest he would be consequences for the u.k. and spillovers to europe more broadly speaking. i think the financial market reaction to the uncertainties would be unleashed by that decision could result in a kind of risk sentiment that we would see impacts on financial m

. >> this is going to get us fdic problems. >> take chips. >>> next up, obama foreign policy flip-flopour panel weighs in next. >>> the question i think has simply been what else can united states do to support them in those efforts. the president feels strongly that the afghans must remain in control of the security situation in their own country. the u.s. combat role in afghanistan ended at the end of 2014. and the president is not considering restarting it. tell that to some of the soldiers in afghanistan or iraq, frankly, syria. take a look at the speeches. we have been able to see what addresses were typically listed as military addresses by this president since he came in office, 2019. there were nine of them. the last one where the president talked about the war or wars was april 13th. yet, they're increasing, the operations. we're back with the panel. charles, this seems semantics. you had the defense secretary today talking about the fighting season in combat. and then he caught himself and realized the white house was saying no, no, it's not combat. >> look, i think it's demo

we welcome bill isaac, former fdic chairman is our next guest. like friday and add it up today, and easy to say but hard not to panic. what is your advice? >> well i think that the worst thing anybody can do right now is panic. that's never a good course of action. the reason why the markets markets were hit because they were surprised. people weren't expecting vote we had and they expect ad different outcome. when we get you surprised i don't know what to do because i was surprised and react to protect themselves first. later they start thinking about, what really happened here and what is the future? and that's when the markets will start to settle down. connell: so tell me your view of that, briefly. what did really happen here and how do you see it playing out? forget about the markets, how do you see it playing out economically and politically here in europe over the next several months? >> i things will be unstable for a while because there is a lot of things that need to get sorted out including the exit path for britain and there will be

under the bankruptcy code with title ii of the orderly liquidation authority that would be used by the fdic, being a backstop that would be available if it were impossible to resolve these firms under the bankruptcy code. so, we are insisting that firms put in place structural changes, governance mechanisms, make sure that they have adequate capital, gone concern, loss, liquidity in the right places, everything that we think would maximize the odds of success in resolving such a firm under the bankruptcy code and the living wills that have evolved over time as the banks understand better what's needed, and we do as well. set out their expectations for how they could be resolved under the bankruptcy code in the event they encountered trouble, these are very helpful documents to have available. now, we -- you mentioned that wells fargo did not -- was -- the fdic and the fed did not find their initial present -- living will a year ago to be noncredible. we did, nevertheless, identify a set of shortcomings less identia set of shortcomings that we wanted to see remedied. and in the last submissi

dodd-frank does say that the fdic and the fed can impose higher capital requirements, dity requirements or structural changes. i do not expect to go there, but we can assess those shortcomings we have identified. senator corker: thank you, madam chair. senator shelby: thank you very much and thank you madam chair. it strikes me that over the last several years you had a great difficult challenge. we all have. we have been operating with one hand tied behind her back, which is pursuing an expansionary policy and you are reluctant to raise rates. we have not had a complementary fiscal policy that invests in infrastructure and other things and allows you and the room to raise rates if necessary or if necessary to complement your activity. the point you just made in response to senator brown is that the productivity gap, some of it is related to decrepit infrastructure. it takes two hours to get someplace. that is too lost hours for someone delivering a package if it takes 10 minute on a superhighway. that is a part of to the productivity increase. your in a position where you are doing all

and that the fdic did not find that to the nine credible. -- and not credible and with the last submission re-evaluated to put all of this informational publicly what is the consequences of that? >> so what happens if we don't have that? >> if you don't if the firm were to fail under those circumstances. >> is that a bailout for the taxpayer? in neck with the liquidation authority. >> we did not have that the taxpayers would be in a difficult position. >> that is what i would like to know there are pros and cons also a risk. can you provide your thoughts on the right amount of thinking capital? >> that is a bad idea to have a leverage ratio that would encourage thinking organizations to take on risk by loading up their balance sheets and that happened to the financial crisis. so that is useful to have with a backup measure and i also think for systemic firms that stress testing is a forward looking space exercises necessary. >> the chair recognizes the gentlewoman -- the chairman for five minutes. >> there are discussions about u.s. baying regulators with a comprehensive study similar to w

. >> this is going to get us fdic problems. >> take chips. >>> next up, obama foreign policy flip-flophs in next. test test test test test test test test test test test test test test test test test test test test test test test test test test test test >>> the question i think has simply been what else can united states do to support them in those efforts. the president feels strongly that the afghans must remain in control of the security situation in their own country. the u.s. combat role in afghanistan ended at the end of 2014. and the president is not considering restarting it. tell that to some of the soldiers in afghanistan or iraq, frankly, syria. take a look at the speeches. we have been able to see what addresses were typically listed as military addresses by this president since he came in office, 2019. there were nine of them. the last one where the president talked about the war or wars was april 13th. yet, they're increasing, the operations. we're back with the panel. charles, this seems semantics. you had the defense secretary today talking about the fighting season in

they don't carry fdic insurance. banks are levered 8, 9, 10 times.vernment guaranteed access. but interest rates -- short-term interest rates and prepayments will disturb the mix. they are not riskless but they carry an 11% yield. that is an attractive return relative to the risk. >> talking stocks and currency as well as bonds. bill, we appreciate you joining us. it will get real interesting the next few weeks. we'll be out with financial advisers later in the show. thank you very much for sitting down with us out west. melissa. >>> a quick check of the markets on the back of that brexit poll. that's when stocks took a leg lower. s&p 500 as low as 20.90. now 20.91. we are at or close to session lows. a situation we are closely watching for you. >>> call it a burrito battle. according to the latest poll, moe's is the most popular fast casual restaurant of this year. for three consecutive years previous to this, chipotle had the title. bruce, great to have you with us. >> thank you. >> customers said, you know what, i'm going avoid the whole food safe

house science, space and technology committee has held this congress, including the most recent on the fdic, cyberbreaches are becoming all too commonplace. this legislation encourages agencies to increase understanding of ways to detect, prevent and recover from actions that compromise or threaten computer-based systems. i thank representative lahood and majority leader mccarthy in establishing an initiative in the house of which this legislation is a part. mr. speaker, i urge my colleagues to support h.r. 5312 and i yield back the balance of my time. the speaker pro tempore: the gentleman from illinois reserves. the gentlelady from texas is recognized. ms. johnson: i have no further requests for time so i yield back and i urge a positive vote on the bill. the speaker pro tempore: the gentlelady from texas yields. the gentleman from illinois is recognized. mr. lahood: i yield one minute to the gentleman from georgia, mr. loudermilk. the speaker pro tempore: the gentleman is recognized. mr. loudermilk: i thank the gentleman for yielding his time. my air the subcommittee and subcommittee hel

shortcomings, we have identified, and then we find them deefficient, dodd/frank does say that the fdic fed can impose higher capital requirements, liquidity requirements or ultimately structural change, and don't expect to have to go there but we are insisting that the firms have addressed the shortcomings that we have identified. >> thank you, madam chairman. mr. chairman. >> senator reed. >> thank you, mr. chair mman an madam chair. it strikes me that over the last several years, you have had a difficult challenge, and we all had, but we have been operating in some respects with one hand tied behind our back and that is that you are pursuing a expansionary policy and reluctant to raise the rates while we have not had a complimentary fiscal policy to invest in the infrastructure, and other things to allow you the room to raise rates if necessary or to compliment your activity with what we are doing, and the point that you made in response to senator brown is that this productivity gap which is troubling, and some of it is just related to the decrepit infrastructure, and if you have to

and also during 2008, the fdic raised guarantees on departments and the treasury guaranteed the moneyt funds. neither of those actions can now be taken. what i want to stress is that possibility of panic is very, very low. but the consequence of its happening could be very high impact. >> well said. and that's the reason we've been covering it as much as we have, professor. nobody actually knows what's going to happen. very quickly, i'm going to ask each of you gentleman the same question. how do you think the vote will turn out? first you professor scott. >> i think they'll stay. very hopeful that will happen. >> collide? >> i agree. >> all right. two hopeful votes for remain. both, thank you gentleman. we appreciate your insight. >> all right. brian, thank you very much. it's 2:00 p.m. on wall street. 7:00 p.m. over in londonening glanld. just hours away now from the beginning of that big vote on whether to stay in the european union or not. voters in the uk will decide tomorrow whether to leave or not the european union. polls are really neck and neck. the pound sterling remains sl

traitors at the systemic risk exists in the industry and everybody decided the federal reserve and the fdicknow nothing about tanks and the traders know everything about them in the stock has plummeted. maria: there you go. >> drew a dark by what every case. maria: wow, all right. real bullish today. thanks so much. we will talk soon. he did say he thinks the dividend at the bank of america will double. ikea issue and a recall of millions of dressers calling it a danger to the lives of children. the committee investigation of the benghazi attack coming to an end. more findings in this report. back in a moment. when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure.

>> the bill will say, under the orderly liquidation authority the fdic can borrow up to 90% of the assetsn the street here, the trillions of dollars that could ultimately put in peril. these are the same people who told us the national flood insurance program would never be a bailout. it's under water. pun intended. the pbgc, need i talk about medicare and social security. washington always tells you everything is fine but it's not fine. economic growth is suffering. we have got to get the economy moving again. one of the largest impediments to economic growth in america today is dodd-frank. we need more capital and less federal control or ultimately we're going to wake up and our banks will be turned into the functional equivalent of utilities for the political allocation of capital. we have got to avoid that if we are going to have a robust economy that lifts people from poverty and gives the middle class hope. >> the thing that -- the push-back on this plan is, again, though, the regulatory piece, this idea that effectively there is lesser -- what happens to the consumer protection bur