congress authorized the fdic to act on applications for deposit insurance and the fdic stands ready to fulfill its mandates to review application and approve them when they meet statutory requirements. the fdic has begun a wholistic review of broker deposit and national rate camps. we recently issued a proposal rule to implement section 202 of s-2155 which provides certain reciprocal deposits are not considered broker deposits. additionally we will seek comments later this year on the fdic's broker deposit regulations more generally. the banking industry has undergone significant changes since regulations were put in place and we will consider the impact of changes in technology, business models and products since the broker deposit requirements were adopted. lastly, i have embarked on a chairman's listening tour to visit with bankers in each state during my five-year term together their input and meet with customers including small businesses, farmers and consumers. my goal is to reverse the long-standing trend of having those affected by our regulation comes to washington to be heard

congress authorized the fdic to fdic stands ready to fulfill mandates to approve any application and approve them when they meet statutory requirements. the fdic has also begun a review of brokered deposits and national rate caps. we issued a proposed rule to to maket section 202 sure some deposits are not consider brokered upon us. my goal is to reverse the long-standing trend of having those affected by our regulations to be heard. it's long overdue that we come to them instead. andncreasing transparency ataging directly, and by eliminating regulatory burdens, the fdic will be better positioned to ensure economic growth and job creation. i look forward to working with the committee and thank you for the opportunity to appear today. chair: thank you. mr. mc waters. mcwatters: thank you for the opportunity to appear at this important hearing on implementation of the act. promotes economic growth and protects consumers. section 103 exempts certain rural real estate transactions, and at a september meeting the board proposed a rule incorporating this exemption and making additional bur

and how the fdic works to ensure fair transparent process for everyone? there is some concern that it was unilaterally denied for no explanation. >> i can go back and make sure that is not the case. so basically the way they work is the request for ravers and they have to satisfy - - certified those requirements and with those authorities and to be granted and that we are working with the entities in your state. >> based on their experience may be broader than just this one request but look at that response with the lack of what they believe was transparency and with those arguments that they made to take a broader look than just north dakota but so get back to us in the banking commissioner in north dakota. >> senator? >> so i have a question with the lack of a real-time payment system in the united states i appreciate the letter i got back from the chairman because you have lots of americans living paycheck to paycheck who send in their check they think it is cached and that they are getting credited for it only to find out they didn't when they get the

and indeed, where would these corporations be without the fdic? where would they be without the department of agriculture that they heavily rely on? where would they be without the infrastructure that makes their private sales possible? where would they be in dozens of areas where the government is filling the huge gaps unmet by markets? there are huge piles of capital that are not looking for investment. trillions of dollars held abroad by u.s. corporations and in this country. nobody would have predicted 30, 40 years ago when the capital formation shortage was a big issue here in washington that they would have so much capital that they wouldn't know what to do with it because management was so inept they didn't know how to find new investment, worker training, higher salaries, shoring up pension funds, doing r and d and even gaining in acquisitions. instead they're using 6 to $7 trillion, as we'll see, in stock buybacks since 2005. a totally unproductive use of capital. and so we have these mutations where corporate capitalism goes way off the

all the money there has been paid out of the fdic was funded by the banks. of $10an sent a loan billion to the fdic to pay the for the failures of small banks. the fdic has plenty of money and they would charge it back to the remaining banks. i think it is mostly over, but you should always be on the lookout for things which could cause problems to the system. things that governments, that on butvernments can do, businesses can. it might be cyber, it could be in different industries out there. the issue now, you don't see the big banks, -- there were 2000 rules. a lot of these roles have calibrations. all of this that needed to be done was coordinate and calibrate in a way that made sense to the economy. that is all. not to make banks go through that all again. >> we have time for one more question, then i will send you all back to make a living. here is zach. hi,, i am with walmarts policy team here in d.c., i grew up in chicago. can you tell us a little bit about, when people think about banking, they are thinking about new york, financial centers around t

the -- would were these corporations be without the fdic? where would they be between , which they heavily rely on? where would they be without the infrastructure that makes their private sales possible? where would they be in dozens of isas where the government filling the huge gaps unmet by markets? capitale huge piles of that are not looking for investment, trillions of dollars held abroad by u.s. corporations and in this country. nobody would've predicted 40 the capitalhen formation shortage was a big issue here in washington, that they would have so much capital that they wouldn't know what to do with it because management was so inept that they didn't know how to find new investment, worker training, higher salaries, showing a pension funds, doing r&d, and even engaging in acquisitions. $7 trillion in stock buybacks since 2005. a totally unproductive use of capital. we have these mutations were corporate capitalism goes way off the for c ability and of market scholars. huge piles of capital, where there are huge unmet needs in this cou

so my first slide shows a chart lifted from wallison's fdic dissent. in the good old days, a prime mortgage meant, among other things, that a home buyer put up at least a 20% down payment when buying a home. as the chart shows, before 1990, the gses financed very few mortgages, with super-low down payments. like 2008, 40% of fannie mae's purchase volume involved mortgages for which the borrower was contributing a negligible amount of capital. 3% or less. a second mortgage on top of a first mortgage could mean a combined loan-to-value ratio of 120%. now, over the past few years, i've read many books. some i picked up in response to interesting reviews, others in connection with various writing projects. i've reviewed many books on my kindle, where the authors say something about the financial crisis. my list for this presentation includes 53 books. and here's the first page of my list. and i have a color coding system. so by the beginning of 2012, there was a substantial amount of work available on the crisis. besides wallison's dissent, there were seve

the other arithmetic is a resolution authority where the fdic has the authority to dissolve depository institutions, but the policies we're talking about are not depository institutions. they're broker dealers in residential banks. again, the arithmetic i have in mind, the votes to obtain resolution authority were not there. i'm being a little bit flip. i don't do conspiracy voice well, but what could regulators have done? the regulators -- i think this might be where charlie and i agree -- dividends, right? there are a lot of people who looked at the dividend payment of these firms and there is a strong argument to be made that the supervisor should have gone to these institutions and told them, look, you either raise capital or you retain your earnings yourself, and obviously that's a whole other discussion. if you turned off the dividends, would it make it harder to raise capital and other things. but the idea that people dismissed things -- well, i agree with that very strongly, the idea that, you know, the public policy steps that could have been taken earlier, whether resolution

in my paper i list several fdic findings inconsistent with that argument. that the fed could have stopped excessive subprime origination. for example, quote, congress created the supervisor for the gses without legal powers comparable to those of bank and thrift supervisors in enforcement, capital requirements, funding and receivership. cracking down on the thrifts while not on the gses was no accident. the gses had shown their immense political power during the drafting of the 1992 law, end quote. affordable housing goals were the policy of congress and two successful presidents. i can assure you that substantial abuse would have been heaped on the fed if it had slowed or stopped subprime origination. fed critics would have complained that the fed was damaging prospects afor minorities and was inconsistent with presidential policy. for all i know greenspan attempted to warn president bush and bush told him, this is just made up, alan, i need you to stay out of the way on this one, bug off. the bottom line was this -- the enormous amount of capital the gses

make sure it's fdic enensured. also for savers and thretirees, cd rates are improving also, 2.5% or moreor a one year cd. if you can tie it up for three year or more you can get a 3% on a 3 or 5 year cd and that's a significant increase we've seen in the past. >> absolutely. on the flich sip side, there's s a flip side, you'll pay more. >> if you are a credit worthy borrower, banks want to loan out at theigher rates. products that weren't available. you have to have good creditor that. we are seeing rates rise for credit cards and that's w gre people ang to get hit. 17% on average for the minimum for a credit card rate according to credit card.com. you add to that the rate point increases and we're going to sew thhin the next billing cycle. the reward there, pay it down now. don't get complacent thinking it's ability on my monthly statementa it will to add up. you could carry that debt for decades. >> always look on t bright side. >> always look on the bright side. money python andharon epperson. >> thank you, shar

the fed and the occ propose listening the enhanced leveraging ratio -- the fdic did not join in the proposal, but that was before you got there. i want to ask you about this, chairman mcwilliams. two of your most recent predecessors oppose weakening the leverage ratio. the director said in a speech last month the proposal would reduce this important capital at these eight federally insured banks by at least $121 billion, which represent a 20% decrease relative to today. do you agree? >> i appreciate on this proposal. ofsn't privy to the process rulemaking and i would want to understand the logistics and the reason behind. >> this is an open question. i recognize over time -- i just want to say putting american taxpayers on risk again and weakening capital standards by 120 $1 billion at a time when banks are making record profits is insane. this is not what our banking regulators should be doing. >> i apologize. >> thank you to the panel for joining us this morning and hearing your expertise. i'm not opposed to regulate tatian -- regulation. inwas congressional intent 2155 to move away from t

the temporary loan guarantee program from the fdic, qe and quantitative easing and the purchases from the federal reserve, which is a backstop on securitization and there is a guarantee from the treasury department and money market mutual funds and commercial paper funding facility from the fed and the money market -- the money facility from the fed and i'm sure i'm missing some, so a huge number of interventions and again, my paper that just came out goes through some of these in more detail and what was striking to me and to my co-authors was the literature finds them effective. so, right, which eventually went into effect in march 2009 and the key staffer and the god father itself, steve schaafrin stated it into the geithner treasury and was there to get it launched and it was an evaluation and it finds that it reduced spreads and it reduced interest rates on securitized assets and didn't secure interest rates on any particular issue within the universe that was covered. it sounds pretty good that it helps relief strains in asset-backed securitization without favoring one or the ot

our customers will save more money now in an fdic bank account and have a balance in their portfolio.his will help us raise more capital for more lending because we believe the economy is strong we belief tax reform has strengthened the economy loan demand is still very high consumer confidence is high so by a rising rate environment we create more savings, more liquidity for banks and our banks have been prepared for this as well as ourbanking federal and state regulators for the last four years, sarah >> thamatthew, talk to us abouto the environment is approaching earnings which ones are best supported for the rising rates >> the yield curve the balance sheet positioning matters and when you step back and you look at the united states, you say pockets of the southwest and southeast are asset sensitive meaning they fare better but pockets of the northeast, particularly in the metro areas like boston and new york city where you have liability sensitive institutions, long dated assets, short dated funding, they're seeing new compression what they need is a steeper curve and for the fed

former chair of the fdic.t trump is blaming the mead kwu f media for helping to fuel the political climate that led to the mailing of those explosive devices. >> the media also has a responsibility to set a civil tone and to stop the endless hostility and constant negative and oftentimes false attacks and stories. >> hours after one of the packages was found at cnn's new york offices some of the president's supporters once again yelled cnn sucks at one of his rallies. first amendment gives everybody the right to criticize journalists and news organizations like cnn, like msnbc, like fox news. it does not give any of us the right to use violence against people we don't like or who don't share our views. i wrote this yesterday. journalism exists to bear witness, speak truth to power and challenge inaccuracy. it's not about positive or negative coverage. sentiment is irrelevant to the search for the truth andectability. coverage that is legitimately negative in pursuit of the truth is not biased. joining me now i

imagine if the united states did not have the fdic and the banks of arizona had to be salvaged by a stateent that had no access to the markets. we need to have this discussion. alix: if you were the finance minister of italy and you are looking at the basis points, what a level you go back to the table? yanis: the question is what do you want to do? do you want to cover up the crisis? we have an insolvency problem when it comes to banks. we have a low level of investment in real things that are necessary to promote proper growth and italy. years, last six or seven we've been covering them up in a variety of ways. easing, attending , we are running out. the government must go to brussels and say we need a proper banking union. alix: did you see spreads widening out? are we in a dramatic world than? we had interest rates that reached 7.5%. by anotherheld, only fudge the did well. investment.d immigration ofe talented young italians away from italy. now we have this populist government. it's about time that we stop fighting. alix: it's great to get your perspective. thank you so much for joi

bank regulations too far in the other direction i think that whether it's the occ or the fed or the fdicw allowing our u.s. banks to be able to lend that's an important part of the market in economic recovery. >> let's talk a little bit about the progress being made with the chinese at this stage. you had a high-profile meeting here with the chinese central bank governor. what can you tell us about what was achieved in the meeting? >> well, before i talk about the chinese specifically, let me put this in context. our economic platform has always been around tax reform, regulatory relief, and trade we couldn't be more excited about the $1.2 trillion trade rewrite, the u.s./mexico/canada deal we're excited about the south korea deal we're in discussions with europe president announced last week negotiations of free trade agreement with japan and we've been very clear with china that we need to have structural changes that we need a reciprocal trading relationship and we should be able to increase our exports by hundreds of billions of dollars so i did have a very productive conversation wi

witnesses from the fed, the fdic, and the national credit union will all be there. allison currently an executive and resident at the wake forest school of business good to see you again, john. >> good morning. >> i thought you -- we're going to talk about this in a second, what we need to do you got pretty close to being part of this administration on a couple of different occasions, didn't you how close did you actually get are you still possibly going to at some point be closer to the trump white house than you are right now? >> joe, i had the opportunity to talk about the secretary treasury job i was actually offered a position on the federal reserve board which was interesting but i felt like the federal reserve's challenges were very difficult in this kind of environment. i didn't think that i would be in consensus with some of the other board members. so i decided not to join the federal reserve board. i probably won't get involved in public policy. it's not my arena. i do better in business and teach teaching >> if i read between the lines, you might even be

fdic protected money in your bank, you are a socialist. keep that in mind.nder $50,000, this is valerie. i -- the way i am voting my social security, as many others this year. which is good. cut. areas we cannot for people coming in the country illegal. money cut some of that back, as well as some of the pastors who have come on this show that are -- millions of dollars. my message toward black americans, you need to be careful who you put in office, especially the young lady in georgia has anything to do with your needs or causes. she is after everyone else to make sure they're satisfied. please read it. host: this is usa today this morning. the president asking his cabinet for 5% of cuts. every cabinet secretary 45% for next year. -- for 5% for next year. the story adds that the president can ask cabinet secretary to cut budgets, the federal budget is approved by congress. lawmakers are free to drop their own spending plans. the president has leverage. the president also sending out a couple of tweets on different issues, this one looking at what is happen