you hung a sign in front of your business that said "bank" and you had to have an fdic sticker and follow lot of other rules. a lot of these risks happen in firms that are not traditional banks. this goes back to that 2007 status quo and says, if you are a bank you have to follow these rules but we will remove the rules for other kinds of financial and to ship. -- institutions. weekende cs bb would be and it appeals the orderly liquidation authority and changes, makes changes to debit and credit card fees. how might consumers see these changes, if they are ultimately implemented? guest: i think they would see weaker enforcement overall. it would look a lot more like the 2007 status quo instead of one day delayed -- dedicated regulator you would have 10 regulators where it is their third or fourth highest priority. as such, there is not really an effective building of expertise. there is this kind of regulatory seekrage where firms would out the weakest regulators and put them in charge. in some ways the bill reflects the idea that there wasn't really a need for reform, and you hear people

according to the fdic, banks are posting record profits since the crisis. profits for community banks increased more than 10% in the past year. in 2016 the banking industry set an all-time record with $171 billion in profits. business lending has increased 75% since dodd-frank became law. credit union membership has expanded by more than 16 million members since 2010 and in-- 2010, an increase of 18%. this is happening in part because we have a system that is fairer, because bad actors are held accountable. the highly successful consumer financial protection bureau has returned nearly $12 billion to 29 million consumers who were ripped off by unfair, deceptive and abusive practices of bad actors. this tough consumer enforcement approach has put the entire financial industry on notice to follow the law and treat their consumers fairly, or suffer the consequences. so the economy is doing as well, financial institutions are doing well -- doing well, financial institutions are doing well, and consumers are finally being protected. the last thing we should do is

the consumer financial protection bureau needs oversight similar to the federal reserve where the fdicarlie rose talked about the importance of oversight. >> there should be a board that oversees the consumer protection bureau, very similar to the fed and fdic, or the head of the agency should be basically able to be removed at will by the president. those are the two tracks. we think the funding shouldn't be a blank check from the fed. should gohey funding through congressional funding and approval like other government funding. vonnie: mnuchin also says he's focused on driving roads and community banks and they should undergo some stress tests, the same as their bigger peers. >> what are the recommendations we can make that will drive growth and community banks, credit unions, and regional banks? if you look at the u.s. banking system, 50% of the assets are held in the top. there are 12,000 other banks. we want to make sure we unlock the burdensome regulation on those other banks so they can make sure they are lending in her communities too small and medium-size businesses. charlie:

under the liquidation authority, the fdic wipes out the firm's share holders and imposes losses on the firm's creditors, fires the firm's management and completely liquid eighths the entire firm. the only people who are guaranteed not to suffer losses are the taxpayers. so if we wipe out this protection to the taxpayer, we are giving -- putting taxpayers in harm's way yet again. this would devastate investors by rolling back decades of investor protections and tram ming on the property rights of share holders by making it impossible to have the management of the companies that they own. the bill would gut the consumer financial protection bureau -- slaughter slar yield the gentlelady an additional minute. mrs. maloney: the consumer financial protection bureau has been a watchdog for consumers and protected the consumers who were often not thought about for first of all or second of all or not thought about at all. this agency protects them. if we had it, we would not have had the financial crisis we suffered. and this would make it easier for banks like wells fargo to rip off consumers

visit ncicap.org] fdic fth -- [captions copyright national cable satellite corp. 2017] >> c-span's "washington journal" live every day with news and policy issues that impact you. coming up wednesday morning, new york republican congressman john faso on president trump's budget, the g.o.p. agenda, and efforts to combat lyme disease. then the virgin islands democrat delegate plaskett on former f.b.i. director james comey's upcoming testimony before the senate intelligence committee. and muslim advocates, president and executive director on president trump's proposed travel ban and the recent terrorist attack in portland. be sure to watch c-span's "washington journal" live at 7:00 a.m. wednesday morning. join the discussion. >> earlier today, vice president mike pence attended the annual national catholic breakfast here in washington. the hatch an hour. -- half an hour. [applause] hunter pence thank you all -- vice president pence: thank you all. archbishop, mother olga, bishop, secretary nicholson. quished members of congress and honored guests ifmente so honored to join you for the 13th annual

made fdic insurance to make safe to put money in banks. we made glass-steagall. we separated order boring banking that you had to protect all the time, from high risk speculation on wall street elm made those three changes, start enforcing the antitrust laws a little more vigorously. it bought us economic peace. basically until 2008. that is what it did, and you what? during that time, america got richer, families got richer, and even wall street got richer. we just need some rules. we have to have some basic rules to make the economy work and that means making wall street work for everyone. that's what it is. [cheers and applause] >> senator warren, this is a question from andrew from virginia. i suspect it speaks for many people in the roosevelt are we going to be okay? >> yes. it is really scary because it's scary at multiple levels. scary because the purposes -- punchers coming harder economically and the 90%, we have far less to fall back on. closer and closer to the edge of the cliff. scary because the world out there is scary. i'm now on armed services and

and, you know, you just -- when i was at the fdic, i handled the failure of continental illinois.e time and we knew absolutely nothing about it. and so it was almost impossible to hand will couldn't nentinent orderly way. we had to devise our own ways on the run. and there just no way to conduct bank supervision and it's no way to handle failures you really to know what's going on i've been urging processes like the living will ever since continental illinois i realize what we didn't have and what we needed i'm really happy they got. that i hope they don't give it up. >> so funny you mentioned that, the chicago america an tile exchange in the early 80s had a cd contract. en that contract died because of continental banks issues i was trading that contract at the time a very good point. there is always two sides over to issue bill, thank you for your thoughts david faber, back to you >> okay. thank you very much, mr. santelli let's send it over to jon fort who gives us a great look at what is coming up on "squawk alley. >> today we have big news in the cloud. oracle specifically. y

fed, places like the office of the comptroller of currency, the fdic, agencies we do not think very much the time, that is where true power lies. and if things will get released, it is much more likely to come out of those agencies than it is from congress. alan were just talking to about the lack of staffing and many government agencies. is that also the case at some financial revelatory agencies and does that slow down the process to some extent? >> yes, the trumpdministration was incredibly slow to staff these agencies. it is a must like they did not thatze in the early days most of the dialing back would happen at the regulatory level. they did not make enough of a priority to start filling those posts. i think wall street vocally communicated to the trump administration, forget congress, we need people at the fed who can dial back rules. we need people who can dial back rules and there has been kind of a rush lately of getting nominees at these agencies. very few of them have been confirmed in only a handful of them has a -- have even had some -- senate confirmation hearing schedule

under the liquidation authority, the fdic wipes out the firm's share holders and imposes losses on the firm's creditors, fires the firm's management and completely liquid eighths the entire firm. the only people who are guaranteed not to suffer losses are the taxpayers. so if we wipe out this protection to the taxpayer, we are giving -- putting taxpayers in harm's way yet again. this would devastate investors by rolling back decades of investor protections and tram ming on the property rights of share holders by making it impossible to have the management of the companies that they own. the bill would gut the consumer financial protection bureau -- slaughter slar yield the gentlelady an additional minute. mrs. maloney: the consumer financial protection bureau has been a watchdog for consumers and protected the consumers who were often not thought about for first of all or second of all or not thought about at all. this agency protects them. if we had it, we would not have had the financial crisis we suffered. and this would make it easier for banks like wells fargo to rip off consumers

. >> i think president trump has nominated three people to the fdic, the occ, and bank regulator at theese stress tests are going to be way of all, what have you. i think they're bad. david: give jon a chance to come in here because you're pretty close to the fed. the fed must realize there is growing distrust of federal bureaucracies to control any system, whether it is our monetary system or tax policy, wheat ever it is. have they computed this, there is growing distrust of organizations like the fed? >> certainly they have computed it, they have computed it with respect to the stress tests as well. the treasury put out a paper a week or so ago, laying out some concerns with the stress test. this relates to what i mentioned earlier, the qualitative part. the fed, their lead regulator, dan tarullo has left. they're talking about going back and looking at some of these things, the way they do the qualitative part of the stress test. maybe they will lighten up some on that. but there are only so far they will go particularly as long as janet yellen is running the place. she believes the

indeed, title 2 does give the fdic the ability to borrow from the treasury all the taxpayer dollars it needs to reorganize a failed financial institution. kind of sounds like a bailout to me. the choice act truly ends the risk of a taxpayer-funded bailout. under the choice act, a failed bank will go through bankruptcy. bankruptcy is a tested, transparency process. judges sitting in open court instead of unelected bureaucrats sitting behind closed doors will make consistent, predictable decisions based on decades of case law. more importantly, it puts bankruptcy -- bankruptcy puts the risk of failure on the banks' shareholders and creditors, not the taxpayers. i urge my colleagues to support the choice act and truly put an end to the possibility of yet another taxpayer-funded bailout. i yield back. the chair: the gentlelady from california. ms. waters: i yield one minute to the gentleman from pennsylvania, mr. cartwright. the chair: the gentleman is recognized for one minute. mr. cartwright: i thank the gentlelady. mr. chairman, my colleagues have already done a good job of talking in g

requires congressional action, it requires the regular agencies, not just ourselves and fcc but also fdic and a market of banking regulators to make these adjustments in the ratio as chairman mnuchin's report is suggesting. i think if we do that we can do it without congressional action in this area. >> i'm happy to work with you as well as mnuchin to solve this problem. i want to shift gears and talk bbc ftc governments. earlier this week commissioner bowen announced her commission to retire in the coming months although her tenure doesn't expire until 2018. can you share your thoughts on the practical impact on not filling all spots? >> i think whoever came up with the idea of commissioners with five members was a wise person. i think there's a logic to a five-member structure. it allows for a ranger views to be brought to bear in setting policy. it also allows for a balancing of efforts. i've spent the last three years, almost three years and i was the only republican on a commission which at two or three democrats on it, currently has one democrats. and when you're in that environment

there should be a board that oversees the consumer protection bureau, very similar to the fed and the fdiche agency should be basically be able to be removed at will by the president, and those are the two checks. the other thing is we think the funding should not be a blank check from the fed. we think the funding should go through congressional review and approval. isia: he also said he focused on driving growth in community banks and they should not undergo the same stress tests as their biggest peers. >> what are the recommendations andend make to drive growth community banks? if you look at the u.s. banking --tem, 50% of the assets what we want to make sure is that we unlock the burdensome regulation on those banks of bacon make sure they are lending in their communities too small and medium-size businesses. people are saying unemployment is low, the markets and thereot, and why, have been no crises since 2008, why do we need to fix it if it isn't broken? >> for a lot of people come the system is working, but there are a one-off a lot of people that the system isn't working for. lowou

there should be a board that oversees the consumer protection bureau very similar to the fed and the fdic, or the head of the administration should be able to removed at will by the president. the other thing, we think the funding shouldn't be a blank check and should go through congressional approval like other funding. >> and the president should have the ability to fire the head of the consumer president agency? >> either like the o.c.c. and other independent regulators, the white house should be able to remove the person without cause or, if they can't do that, there should be an independent board that overseas that person is that let me talk about general bigger ideas. in terms of tax reform, not necessarily a bigger idea, but the secret si of the legislative agenda. the president said healthcare comes first, tax reform and regulation and infrastructure. at the same time, there is a sense that if he had started with infrastructure, he miffed more people on board and might have been more success 1/2 finding common ground with democrats. >> well, charlie, let me just first say the pres

i do not feel confident that we do notat they are, i feel confident the fdic knows its own exposure toe are a lot of things i am concerned about with regards to the opacity of the banks. other people have spoken about that, including holsinger -- paul singer. i am not the only one saying that. do the annual stress tests lack of validity because everyone passes? capital one,ase of where the fed says there are qualitative concerns, it did pass conditionally. is there value in these exercises, if everyone just gets a go-ahead? arnold: it is the first time the big banks have passed, unprovoked -- unconditionally. it has been a decade since the financial crisis. the point of the stress test is to raise equity in the banks. that is what they did, at the time. the banks are really retaining most of their earnings. it is only this year where, in terms of our analysis, we believe all the biggest banks have more than 150 basis points above their 2019 capital requirements. a year and a half away, they are already above that 150 basis points. it seems like a reasonable time when the biggest banks

remember when i was working in a bank, you know, there wasn't an adversarial situation between us and fdicauditor or -- they were doing their job. we were supposed to be doing our job. they wanted us to be successful. i think all that's changed. money -- we have proven the limit to monetary policy. now we're going to prove the cost of it. but i do believe that fiscal policy's important, but i never thought 20 years ago i would ever believe this, regulation is the number one problem in this country. it's bigger than the tax burden. and we need to deal with it and thank goodness the bills that were adopted in the last eight years are all shells, where the regulator decides what the vocal rule rules, what the stress test tests, and that can all be changed. and we need to be relentless in changing it. and i do believe tax reform will help us. it just can't make sense for us to have the highest corporate tax rate in the world when you bring in state rates 39%. when you can operate in ireland for 13%. it's -- you're not serving your investors by doing business here. >> i've received more complai

we're proud of the fact that loan modification starred in md macunder the fdic and we count count veried to hemp so this is something i know about. >> thank you. changing topics in your testimony, you noted the treasury prioritize the national security and the department's wide range of financial stools toward that end. we're talking about sanctions. and in many respects you're sort of the tornado watch dog on such things, making sure that they're actually en forced. i'm sure you believe that sanctions are an important tool, say going to war, make sure other countries comply with the rule of law and what other countries believe is appropriate. north korea, the iran deal, the sanctions on russia involving ukraine, but, again, there is a cut that the office of terrorism and financial intelligence by $6 million. and the nnl crimes enforcement net work about $2 million. particularly at a time when all of these countries are ramping up their efforts to circumvent sanctions by money launder rogelio. >> i firmly believe in the sanctions programs. i'm probably spending 50% of my time on what we

. >> joining us for more now is former fdic share, sheila bair, welcome back. >> great, thanks to be >> what do you think of the stress tests? thursday, june 8th, talk they'd do stress tests once every two years. how is this evolving? >> yeah. well, i think there's certainly some simplification around the stress testing process, improvements, and transparency. glad they are moving that direction, ahead of regulation stalled that, but it sounds positive. i think there is a quantitative piece to the stress test based on capital in the stress situation and qualitative, which is very murky in terms of what that means. we have to pass -- to pay your dividends, so i think there's also been moving, smaller banks, relief to qualitative piece, and that's more of a supervisory process, traditionally it's confidential, subjective, and it's a good process, but to have dividends os than is tough. that's another reform. >> well, as congress looks to do something, bank regulations, and, of course, administration trying to speed things up, what do you think the lest of priorities ought to be in term

president's .inancial regulators confirmed those the nomination of jim klinger over the weekend that the fdicnently qualified nominee. that does not open up the end of november. to him over the weekend and there was a concern that the white house is not nominated folks for posts that are currently vacant, the most of which is the vice chair for supervision at the fed. that still has not be named as we go six months into the administration. financials of the best performer in june. what's placed into that? as a smalliced in amount of deregulation making its way through washington in the next 12 months. i also think a stronger u.s. and global economic backdrop. what will really move the data is financials just move the needle is financials. the fed will tighten monetary policy and as they start producing for the balance sheet. as international central banks begin tightening monetary policy and international investors are shopping in u.s. markets come alix: they will go home. alix:the spread is winding up flattening after thi the september hike. financials -- do financials need a hike? >> i thin

. >> he also said the consumer financial protection bureau needs oversight, just as the fed and fdic0 and 10:00 in new york on bloomberg. tom: thank you. jonathan golub is with us of rbc capital. now the truly eclectic guy in economics, kim schoenholtz, out of round and you -- brown and ya le, now with new york university. we turn our attention to regulation. people would not expect you to write a treaties on revelation rather talk about monetary theory what you do in your money and banking text. why are you looking at regulation? kim: great question. it is the big thing, seven years of dodd-frank and a love people think they want to make changes. the house just passed a financial choice act last week that would roll back many aspects of dodd-frank the that is what we wrote about, the house version. on monday, the treasury came out with a plan for changing the financial structure. it looks a lot like the financial choice act. tom: what does jamie dimon want, the old thing, nostalgic and go way back, i doubt it? does he want original dodd-frank? saidthe biggest thing he he wants is to

america's community health centers also known as fdic and the underserved communities and populations. health centers represent the nation's largest primary care network providing high-quality care to more than 25 million patients.rsse a record of success would not be possible without the ongoing support of congress to name here today to urge you to continue to support extending investments in the health center program and specifically the communitybl health centers fund which provides enormous value to patients, communities, the health system and the taxpayer. success is reflected in the core requirements every health center must meet. each health center must be open to all. must serve our population and they must offer comprehensive ranges of primary care services and governed by a consumer majority board which worksrve ma closely to develop responses to community needs. in 2010 congress created a dedicated the investment health centers. the fund directed resources and operational expansions in capital investment in health centers.d as a result of this investment, sites are added in

. >> see you later >> former fdic share sheila bair will give us her reaction to the results of the stressl all come across we think about 4:30 p.m. >>> meantime with the dow down four points, we're coming back for the closing count don. >> and we'll speak with carnival ceo around donald and we'll speak with the former ceo of molina health about the senate's health care plan the impact of changes on obamacare and how st f may all have impacted his ouerrom his company. you're watching cnbc, first in business worldwide it's over. i've found a permanent escape from monotony. together, we are perfectly balanced. our senses awake. our hearts racing as one. i know this is sudden, but they say...if you love something set it free. see you around, giulia welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn. our 18 year old wase army in an accident.'98. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family, and we will be with usaa for life. (large boat honking) ♪ i'm l

you had the president nominate three people to run the fdic, the occ, and the bank supervisory part ofe loans. you had long-term interest rates go down if you will to securities that they own. you know, you can go on and on. i mean, the three people who are appointees for the three agencies that i just mentioned are also the united states representatives on the committee and the committee right now is dead. there's not going to be any regulation coming from that. you're going to get a change in the liquidity ratio requirements. and if you think about it, i mean, jp morgan is sitting with $1 trillion in cash and securities. you've got companies that have 35% of its assets in cash. all of this stuff is happening at the same time and basically it's giving you a really strong underping for where banks need to be in the next -- ashley: more money back on loans, so that's another plus. but i wanted to get your feedback on this: house speaker paul ryan making a major tax reform speech at the manufacturing summit in the next hour. you know, listen, i'm tired of all we're going to do this. we h

jobs month of may coming, in far below 185,000 expected, joining me rights now is chairman of the fdicining us. >> let begin ask you about regulatory relief what is going on, in terms of the rollback but let me begin with your expectation of the economy right now, on the heels of that jobs number how do i see things. >> economy is doing very well right now, and numbers will vary as always we are in process to moving from one equilibrium to a new he whatever that is a delicate matter we will have itches and denounce right now the economy is very strong. >> how much would you look towards fiscal policy to sort of lift things up because here we have, the administration, trying to execute tax reform, and health care reform all policies that focus on jobs. do you think that is a big component of what we will see do you expect that we will see 3% growth as they are predicts. >> well i don't know what growth rate will be in future i know fiscal policy will be difficult process given the size of debt deficit so fovrth going to be a challenge but how it comes together monetary policy fiscal, an

they put the guy who wrote the financial choice i confronted the fdic and taken a guy who's been buyingpanies and they want him to be their fate governor in charge of the regulation. then the wind changes they suggested in bank regulation of 370 double put into effect seven or eight years. the administration has been significant. maria: let me ask you before you go, warren buffett is now on track to become bank of america's biggest shareholder. the stock up 40% since the election. a larger dividend would be untrendy berkshire hathaway in a $17 billion worth of common stock. while attending for bank of america and bank of america and has been interesting the larger shareholder of wells fargo now with all this talk today would be the largest shareholder they are. >> i think it's a real question to legality. it's not him. it's berkshire hathaway. the legality of what his positions are. he is the biggest shareholder for his organization and the biggest shareholder in the second and third largest bank in the united states. the significant holdings of the bunch of other things like being blin

financial protection bureau's , they will also limit the orderly liquidation theority, the eighth -- way fdicg other financial crisis. and you will see the volcker rule be revealed as well -- repealed as well, so that would allow proprietary trading. but they're moving the ball down the hill to ease up on regulations for the big banks. >> but what we need to do is with a the regulation small, community regional banks. but it like this has more to do with the big banks. >> it will be both, the big and small banks. the small banks, as you know, have been inundated with paperwork from this regulation. for example, if you go over $10 billion in assets, which is a small bank in this country, you will get hit with the amendment, which reduces fees on debit card transactions. but will typically impact the smaller banks by giving them less paperwork to deal with. >> do you factor in deregulation and rolling back those in big corporate banks? i think that would be terrific. it would give an immediate move if you pass some kind of legislation, but for the whole market and especially for the banks, the

but i would also point out that 98% of all banks, according to fdic data that had a 10% simple ratioond worst financial panic in america's history. so if you achieve that level we think there will be greater stability. but at the same time we want freedom to have banks make these decisions. we don't want credit allocation politicized in washington, d.c. and ultimately i fear that is the goal of many on the left. with this regulatory onslaught. and dodd-frank represents a greater imposition of regulation on our economy than all obama era regulations combined. it's that bad. >> back to the politics just to get something passed to make some changes that the senate will pick up on, what would you have to do to change the bill and what would you be willing to do just to get something -- >> becky, i'm willing to negotiate but i'm not willing to negotiate against myself. so i'll wait to see what the senate will produce. again, part of the choice act can be done through reconciliation. >> right. >> other provisions will have to be negotiated. i stand ready to negotiate in good faith with dem

those deposits from 1.2% up from the prior 1.05% well above the national average for savers, which the fdic05%. joseph? >> you were around -- or were you too young? >> yes. >> you know how many times people said ayatollah. >> ayatollah. >> the ayatollah khomeini. it was said a thousand times every day. that's a tough one when the ayatollah. you've done twice to. ayatollah khomeini. ayatollah, right? when was that, larry, do you remember? was it '79? >> i do remember. >> i was too young. >> the ayatollah. >> the ayatollah. the ayatollah. just say it with me. ayatollah. >> let's do pronunciation class. >> gillian tet is here. that is a cool name. the tet offensive. >> i have had that joke before. amazingly enough. >> it wasn't funny the first time. >> hey, you've got to make it work. >> all right. stocks to watch today sears is reportedly closing 237 of 72 more stores in addition to the 180 closings announced earlier this year. business insider says the latest round will include 48 kmart stores, 16 sears stores and 7 auto stores. i don't know why i'm having deja vu. but has sears been doing a

visit ncicap.org] fdic fth -- [captions copyright national cable satellite corp. 2017] >> c-span's "washington journal" live every day with news and policy issues that impact you. coming up wednesday morning, new york republican congressman john faso on president trump's budget, the g.o.p. agenda, and efforts to combat lyme disease. then the virgin islands democrat delegate plaskett on former f.b.i. director james comey's upcoming testimony before the senate intelligence committee. and muslim advocates, president and executive director on president trump's proposed travel ban and the recent terrorist attack in portland. be sure to watch c-span's "washington journal" live at 7:00 a.m. wednesday morning. join the discussion. >> earlier today, vice