will be the fdic? >> congressman this is a conservative as well and will they believe the association will need to have the right oversight and meet the bar for oversight and guarantee that it cannot deviate from a full one-to-one reserve. sam will it be self-regulation? that's what the wildcat banks were doing that so victor tune into factual reserve. people put their money in the wildcat banks because they believe perhaps wrongly that their money was saved but without the fdic guarantee isn't this exposing -- aren't you creating a problem tomorrow again? >> we are not congresswoman but i do share your concerns and that's what i believe having the proper oversight and self-regulation of the association level notably under the reserve is important and i want to go further. what i would like is for any consumer at any given point in time when they hold a libra to have full transparency of the value of the reserve backing the libra at any given point in time. >> essentially that's always what we believe

we are going to hear from the fdic chair ahead ofthat big decision dow up 48.ank you, apple quk t see is back in a moment. here, it all starts with a simple... hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. >>> the federal reserve expected to make its first rate cut today since 2008 steve liesman has been monitoring the fed ahead of the big decision steve, what do we know >> history expected this afternoon with the first rate cut by the fed in 11 years, but also a dramatic turnabout in policy by the central bank not much change in the economic outlook. we looked at what was the fed thinking about 2019 in december versus what it's thinking in june 0.2 lower on growth. 0.1 higher on unemployment very low rate still. 0.1 lower encore inflation but a big change in

is the fed committed to working with the fdic and occ to come up with a plan for the small-dollar lending? >> i think we're doing that. actually, i think there's an interagency group that's carrying that forward right now. >> okay. would that -- i think we're all ready to end a very long morning. so i appreciate that and madam chair, thank you for your indulgence and i yield back >> thank you very much i'd like to thank chairman powell for his testimony today without objection, all members will have five legislative days within which to submit additional written questions for the witnesses to the chair which will be forwarded to the chairman for his response. i ask you to please respond as properly as you are able without objection all members will have five legislative days within which to submit extraneous materials to the conclusion in the record this hearing is adjourned and i thank you very much for your patience, mr. powell >> and that is fed chair jay powell wrapping up his day one of two days of testimony on capitol hill today. welcome to "the exchange" today. i'm kelly evans. and

this past week, former fdic chair, sheila bayer called on the fed to exercise additional oversight over libra particularly if calibra, the ability to have credit disruptions, former currency risks, financial mismanagement of the libra reserve, the truth is that we could be creating a system that -- without the kind of regulatory oversight that led to the crisis that took place that senator tester pointed out. i think back when the reserve fund broke the buck, we didn't think that was going to be the thing that potentially brought down the system, but you could end up with that same circumstances around libra can you expound a little bit on what you see around these regulatory risks and do you basically share shelia bair's concerns regarding the liquidity risks presented by libra >> i do. i think the risks are -- i think we need to do a very careful, patient, thorough assessment of what the risks really are. and i think that's going to take a little bit of time and the idea this would be going into implementation within 12 months, i think, is not going to be proven right i think we're go

cred red fdic -- [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] [captions copyright national cable satellite corp. 2019] >> jerrold nadler held a news conference earlier today to discuss the robert mueller report. and mr. mueller's testimony this week in front of congress. he said his committee is still considering whether or not to recommend articles of impeachment against president trump. this is half an hour. mr. nadler: good afternoon. i am joined today by many of my colleagues from the house judiciary committee. we want to say a few words about director mueller, what we learned from his testimony and next steps in our work to hold president trump accountable for his conduct. robert mueller is a man of honor and integrity. he has led a life defined by service to his country. some have argued that because director mueller was reluctant to testify and seemed older than some remembered him his work is somehow diminished. it is not. before he ever stepped into our hearing room, the director had r

according to reuts, which cites fdic data, agricultura loans a the nation's top banks fell 37% betweenand march of this year. banks nk increased their ex boeposure to the rural midwest in part because farmers had collateral, but theom retreat as farmer's incomes decline. we told you yesterday virginia was s ranked topte for business in cnbc'survey due to the quality of workforce and educational system. yhere are 50 states. that means somebad to come in last. tonight scott cohn takes us to the survey's worst state for business, rhode island. >> reporter: for a little state, rhode island has big problems, but to hear the governor tell it the worst is over. h >> wee stopped the decline. we have stopped the decline, and working together w have ignited a comeback of this great state and our economy. >> reporter: the comeback has yet to show up in the numbers, near the bottom forusiness friendliness, cost of doing business, economy, and still at the bottom for infrastructure. fixing that has beenriity for governor gina ramondo. >> there's me road work going at any is state than time in our l

president, the department of justice and a dozens attorneys general were trying to kill what's left of the fdic. they were trying in a federal court to eliminate pre-existing condition protection for 130 million americans. then monday joe biden revuls his medical plan. we have talked about the racist tweets going after four house freshmen. >> is it a mistake? >> although they are inappropriate -- >> was it a mistake to talk about those things? >> it is an intentional strategy by the president to change the subject. reshould be taking briefly about how unacceptable these tweets are. about how they do not reflect well on the united states. and how they send destructive messages in our country. those of us who are people of faith and care about our relations with each other and care about how we speak about each other should be able to find a better way forward. and we should on a bipartisan basis be condemning these comments. >> yeah. but are you saying that the house vote took up too much oxygen? they shouldn't have dedicated all of that time to this? >> alisyn, how much time are you spending to

. >> they are not covered by fdic insurance.hen you think about it, it's not part of a bank's traditional business they are chartered as a lending operation. they're not there to be a safekeeping operation, per se, unless you're talking about a safe deposit account so, people are learning the hard way that the stuff they put in there is not -- number one is it's not insured and number two, if it gets lost, banks have a cap on how much they are liable for that >> and it varies bank by bank. jp morgan may have one and bank of america another >> it was ten times which was paid to rent which i think is $246 so what are you putting in there? safe deposit box goals >> but the risk here is not that the boxes themselves are unsafe but that with all of the consolidation as bank branches move and close and those -- your box may not be on bloomfield avenue and north fullerton street anymore it may be in clifton, new jersey now. and they may not know where you live anymore >> can i bring up one other thing about safety deposit boxes? a lot

>> it came out of an armored car, arguably fdic-insured. >> i believe in karma.i would do it. i think i would turn it in. i'm that guy. >> the law is clear. you're walking down the street and you see a $20 bill. there is a di minimis standard. there are laws against taking mislaid or lost items and keeping them yourself. you're supposed to notify the police. if a statutory period goes by you get to keep it. this is an ethical dilemma. it is a not free money. >> let me ask you this. if i turn it in and no one claims it after a period of time, it's mine? >> you get it. >> why wouldn't you just turn it in? that way you're clear -- >> because you want the money. because it's cash money. >> i know people at home are like, are you crazy, don? i wouldn't keep the money. i'm sorry, i wouldn't. >> look, here's the test of integrity pop taught me. would you do the right thing if nobody would know you did the wrong thing? it's crazy to say i wouldn't do it because i don't know the money. but if you did, i totally understand why people were picking it up and gathering it and

>> it came out of an armored car, arguably fdic-insured. >> i believe in karma.turn it in. i'm that guy. >> the law is clear. you're walking down the street and you see a $20 bill, but there are you're supposed to notify the police if a certain period goes by you get to keep it. this is san ethical dilemma. this is free money. it's not somebody's money. >> okay. so, if i turn it in, and no one claims it after a period of time it's mine? okay why wouldn't you turn it in? you're clear on -- >> you want the money. it's cash money. >> i know people at home are like are you crazy? i wouldn't keep the money. >> here's the test of integrity. would you do the right thing if nobody would know you did the wrong thing. >> yes. >> it's easy for me with my crazy blessed life. to say i wouldn't do it. i don't need the money. if you did i understand why people were gathering it up. >> i'm not judging. i'm with you on that. i don't judge somebody who keeps it. you ask what i would do. >> that guy who came forward and anybody who comes forward, that is something where there shoul

is the fed committed to working with the fdic and occ to come up with a plan for the small dollar lending? >> i think we're doing that, actually. i think there's an interagency group that's carrying that forward right now. >> okay. with that, i think we're all ready to end a very long morning. i appreciate that. madam chair, thank you for your indulgence. i yield back. >> thank you very much. i'd like to thank chairman powell for his testimony today. without objection, all members will have five legislative days within which to submit additional written questions for the witnesses which will be forwarded to the chairman for his response. i ask you to respond as promptly as you are able. without objection, all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record. this hearing is adjourned. i thank you very much for your patience, mr. powell. neil: fed chairman jerome powell got through that fairly unscathed. welcome back, everybody. i'm neil cavuto. you're watching fox business. the gist of it is this. the man who runs

caught the regulator's eyes wasn't the high rate, it was the fact that the customers' money wasn't fdic insured. robinhood eventually scrapped the launch and a new in-depth report takes a look at their practices at this time dan dee francesco joins me, come on down, along with kate rooney who has been following this story as well, guys. thank you very much. obviously, it's been a busy afternoon here dan, it's a great piece, which really gave people an appreciation for how frenetic the atmosphere was for this launch now, frenetic for a start-up can be a good thing many this case, it backfired big-time >> i think it was a perfect example. kate and i were talking about this mentality of move fast and break things that works in a lot of industries but in something that's so kind of very regulated and dealing with people's livelihoods, it doesn't work here. and robinhood made the announcement that service sipc insured, but the big mistake was that they didn't check with sipc to be sure they were insured >> to be clear, they said, we have this insurance, but didn't actually have it as we look

those banks had agreed with the fdic's to give those -- give access to when they wanted to set up branches in the united states. in 2016 there was another investigation where we tried to invoke to get the chinese banks and the chinese justice ministry to cooperate. they pretty much gave us the middle finger. we got no cooperation on their part, that is the basis for why the justice department is using more coercive means. i would be very cautious about attributing too much diplomatic or political incentive to what the justice department is doing. the justice department, and i would single out the southern desert of new york, but also the d.c. district, may really value their political --. in the legal profession we refer to the southern district of new york, the sovereign district of new york for the reason they just really push away washington and its political considerations. i strongly believe in that to some extent i know some of the people believe that the justice department is simply proof -- pursuing violations of law. they don't believe the financial system should be open for peopl

time, one other issue that is important especially back in georgia, small dollar chairg -- when the fdic testified back in may, i asked her if they plan to address the small dollar lending issue for banks and she said that she was going to work with the other regulators to get this done. is the fed committed to working with the fdic and occ to come up with a plan for the small dollar lending? chairman powell: i think we are doing that. i think there is an existing group carrying that forward right now. rep. loudermilk: ok. athink we are already to end very long morning. i appreciate that. madam chair, thank you for your indulgence. >> thank you very much. i would like to thank chairman powell for his testimony today. without objection, all members will have five legislative days to submit additional written questions. they will be forwarded to the chairman for his response. i ask you to please respond as properly as you are able. without objection, all members will have five legislative days forubmit extraneous days ex [indistinct conversations] [captioning performed by the national capt

when the fdic chair mcwilliams testified back in may, i asked her if they planned to address a small dollar lending issue for banks, and she said she was going to work with the other regulators to get this done. is the fed committed to working with the fdic and occ to come up with a plan for the small dollar lending? >> i think we're doing that. i think there's an interagency group that's carrying that forward right now. >> okay. >> would that -- with that, i think we're ready to end a very long morning. i appreciate that, and madam chair, thank you for your indulgence and i yield back. >> thank you. i'd like to thank chairman powell for his testimony today. without objection all members will have five legislative days within which to submit additional questions for the witnesses which will be forwarded to the chaurm for his response. i asked you to respond as properly as you're able. all members have five legislative days to submit extraneous documents. i thank you for your patience, mr. powell. >>> the house oversight sub committee on civil rights and human services holds a hearing

differently with the gd pr across sectors if you look at fsoc in the financial world the treasury, treasury, fdic, occ, cfpb and the f hfa have you analyzed in a sectorial approach which of these regulators would have a piece to create the rules of the road if the united states stays on this approach? >> this is not for me to say of it all i can say today as we are committed to working until we satisfy all the concerns and regulatory bar is met before we proceed. those that we are engaged with with the g7 working group with the central banks looking into libra and collaborative working with them was well. >> it seems to me it seems which agencies will take a claim of what is happening. but you will comply with all regulators quick. >> yes or. >> i have are questions i will have to submit after the hearing be told the banking committee that collects the information using for advertising and personalization briefly will you please describe the personal data collection from the platform transactions so will this information be collected for those transactions that use the libra wallet like when a pr

could make it systemic too much money could be pulled out of banks in order to buy libra, which former fdicen about and warned about so the risks are very great. now, personally, and this is my own personal belief, i don't think you should launch libra at all because the creation of a new currency is a core government function and should be left to democratically accountable institutions that are accountable to the american people but at the very least you should agree do this small pilot program first fully overseen by you and the federal reserve and the s.e.c. i think that's a modest request. so will you commit right now to doing a small pilot program first, yes or no >> congresswoman, we will continue to engage with regulators and the working group at the g7 that is notably looking after the issues you raised to ensure that however we launch this, it is responsibly and it is with the appropriate oversight and in a very responsible way. you have my commitment on that. >> if you will not commit to testing this -- >> house financial services, the questioning arguably maybe a tad less focuse

much money could be pulled out of banks in order to buy libra which former finishing dic chair -- fdichair sheila bair has warned about and written about. so the risks are very great. now, personally -- this is only my own personal belief -- i don't think you should launch libra at all, because the creation of a new currency is a core government function. and should be left to democratic canically-accountable institutions -- democratically-accountable institutions that are accountable to the american people. but at the very least, you should agree to do this small pilot program first fully overseen by you and the federal reserve and the sec. i think that's a mod request. so will you -- modest request. so will you commit right now to doing a small pilot program first, yes or no? >> congresswoman, we will continue to engage with regulators and the working group at the g7 that is notably looking after the issues that you raised to insure that however we launch this, it is responsibly and it is with the appropriate oversight and in a very responsible way. you have my commitment on that. >>

rule across sector if you look at fsoc in financial world, we've got treasury, federal reserve, fdc, fdicfa my question to you, have you analyzed and determined in our sectoral approach to regulation which of all these regulators could have a piece of creating the rules of the road, if the united states stays on this sectoral approach. >> chairman, this is not for me to say but all i can say today is that we're committed to working until we satisfy all the concerns and regulatory and meet regulatory bar before we proceed. in the u.s., there are a number of regulators that we're engaged with, and we're also engaged with g7 working group that includes finance ministries and central banks that are looking into libra, and we're working collaboratively with them as well >> i understand you can't tell us which agencies are going to take a claim to establishing libra but you have committed you will comply with regulatory requirements of all u.s. regulators. >> yes, chairman. >> let me go quickly to one other questions. i have a lot of them i'll have to submit some of those to you after the heari

in the financial world we have the treasury, the federal reserve, the fcc, fdic, cfpb, and f hfa. my question is have you analyzed and determined which have all of these regulators would have a piece of creating the rules of the road if the united states stays on this approach? >> this is not for me to say but all i can say today is that we are committed to the working until satisfying all the concerns and beat the regulatory bar before we proceed. in the us there are a number of regulators that we are engaged with and are also engaged with working groups including the finance ministries and central banks looking into libra. we are working collaboratively with them as well. >> i understand that you cannot tell us which agencies are really going to take a claim to some piece of what is happening with the establishment. you have committed that you will comply with regulatory requirements of all regulators? >> yes. >> let me go to one more question. i've got a lot of them and will have to submit some after the hearing. you recently told the banking committee that facebook collects da

i was regulator at the fdic. we would close a bank down who gave these so-called loans so fast your heads would spin. this is not a len. this is a complete writeoff of irresponsible behavior. we shouldn't have anything to do with it. i urge my colleagues to reject this bill. i oppose it. i hope they will too. the speaker pro tempore: the gentleman's time has expired. the gentleman from texas reserves. the gentleman -- the gentlewoman from california is recognized. mrs. torres: mr. speaker, painting this greedy picture of union bosses who mismanage funds and overpromise benefits, doesn't get us anywhere. and that is simply not true. but i'll tell you what is true. at is true is that 399 retirees in texas 19, congressional district 19, will lose. but guess what? democrats got your back. in texas 19. know that. now i would like to yield one minute to the gentleman from california, mr. ruiz. the speaker pro tempore: without objection, the gentleman from california is recognized for one minute. mr. ruiz: i rise in sup

this past week, former fdic chair, sheila bair called on the fed to exercise additional oversight over labor. possibility of this currency is fully doped up. especially culebra, which would be the facebook wallet in labor. the ability to have credit disruptions, consumer losses, currency risks, financial mismanagement of the libra reserve. the truth is, we could be creating systems that, without the kind of regulatory oversight that led to the gap that the crisis that took lace -- pointed out. i think it back about when the reserve fund broke the buck. we didn't think that was going to be thing that intentionally brought brought down the system. but you could end up with that same circumstances around libra. can you expound a little bit on what you see around these regulatory risks? and you basically share sheila bair's concerns regarding the liquidity risk regarding labor? >> i do. think the risks are, i think we need to do a very careful patient and thorough assessment of what the risks really are. think that's going to take a little bit of time. the idea that this would be going int

this past week, former fdic chair sheila bair called on the fed to exercise additional oversight over libra. possibility this currency is fully built out at particularly if calibra which would be the facebook wall within libra, the village of credit disruption, consumer losses, foreign currency risks, financial mismanagement of the libra reserve, the truth is we could be grading system that without the kind regulatory oversight that led to the gaps that the crisis that took place as senator tester pointed out. i think back about when the reserve fund broke the buck. we didn't think that would be the thing that would ring down the system but you could end up with that same circumstances around united states. can you expound a little bit on what you see around these rights are risks? and do you basically share sheila vers concerns regarding the liquidity risk presented by united states? >> i do. i think the risks are, i think we to do a very careful patient, the assessment of the risks really are anything that's going to take up a bit of time. the idea this be going into a limitation wi

just going to ask she louisiana i think sheila behr probably dealt with the federal se serve at the fdicstep during the crisis, working on policy. she larks you remember, there was a dynamic on the federal reserve, you had your hawks that kind of limited how far you'd go >> right >> you had your doves that were like let's go all the way. as a reporter, you cover that dynamic. i'm missing that dynamic here. when you look at the federal reserve now, do you see the same old idea there are some people that say let's not go that far and some people saying let's go all the way here or everybody says, let's cut, we are all on board? >> yeah, it seems to be a unified front at this point. you know, i think there again, i think there is some dynamic with the president unfortunately bashing the fed and chairman powell personally. my guess it's feeding into that unanimity. i don't sense the more robust discussions we are seeing previously you are seeing that on the supervisory side they're still easing on the supervisory side too >> so are you more on the left brainer catch or the randy cross camp i

if you look at f sock in the financial world we've got the treasury, the occ, the fdic, the cfpb, the cftc, the fhfa. i guess my question to you is, have you analyzed and determined in our sectoral approach to regulation which of all of these regulators would have a piece of creating the rules of the road if the united states stays on this sectoral approach. >> chairman, this is not for me to say, but all i can say today is that we're committed to working until we satisfy all the concerns and and meet the regulatory bar before we proceed. in the u.s. there are a number of regulators that we're engaged with and we're also edge gauge -- engaged with the g-7 working group and the finance ministries and central banks working with libra and we're working with them clabtiollaboratively as we >> i understand you can't tell us which agencies are going to take a claim to what's happening with the establishment of libra, but you have committed that you will comply with the regulatory requirements of all u.s. regulators. >> yes, chairman. >> let me go quickly to one more question. i've got a lot

sector from the bankruptcy of the institutions would you have anything other than let it go >> there's fdicle, it was already there before you put these regulations on it. >> no, had nothing to do - >> so my point is -- >> your point is wrong. >> no it's not wrong. >> had nothing to do with aig. >> you can't protect every mistake managers make in a capitalist society you said that -- that's what you said they were poorly managed and they lost people money, so what i say. >> $170 billion that had disruptive effects on a lot of innocent people and had -- >> $170 billion is a rounding error in our economy i'm sorry, it's not that much. it could have survived by going bankrupt. >> that attitude in which -- >> no. >> people being wiped out, all the people who had done with aig the companies that were wiped out by that, i admire your calm in the face of their disaster. >> no, look, i also had exposure to aig debt. should they have gone to zero i would have lost that, but i had diversification including most people with pension plans. i don't like the government saving - >> you don't think we need

cred red fdic -- [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] [captions copyright national cable satellite corp. 2019] >> jerrold nadler held a news conference earlier today to discuss the robert mueller report. and mr. mueller's testimony this week in front of congress. he said his committee is still considering whether or not to recommend articles of impeachment against president trump. this is half an hour.

when we talked with him about the corresponding approaches with fdic, for example, i asked mr. marcus do you think that libra would be subject to fdic, to some kind of insurance scheme, what is the backstop so that when you tell customers that this is backed, that they know what they're getting, what kind of backstop and security they have. i wanted to ask he didn't take me up on my offer to have the fdic regulate libra, i was happy to run through the alphabet soup, you can choose one of the weaker regulators like occ if he prefers, i mean, there is an plebt so alphabet soup we could comment. which regulators and it could be more than one do you think are appropriate for libra? >> one comment and observation that i recently had was whether or not facebook if it was to become a bank would even satisfy the de novo review process from a banking regulator. it's uncertain as to whether or not they would receive the license. the ambiguity the term backed is played throughout the white paper. on the one hand if you're describing yourself as a currency board you are thinking backed in

captioning performed by vitac >> -- with the fdic to give us access to when they were allowed to become correspondent banks and to set up branches in the united states. in 2016 there was another investigation where we tried to invoke the mlat to get the chinese banks and the chinese justice ministry to cooperate, they pretty much gave us the middle finger. we got no cooperation at all and, therefore, that is the basis for why now the justice department is using more coercive means. i would also be very cautious about attributing too much diplomatic or political incentive to what the justice department is doing. the justice department -- and i would especially single out the southern district of new york, but also the d.c. district -- they really value their political independence. in the legal profession, we refer to the southern district of new york as the sovereign district of new york for the reasons that they just really push away washington and its political considerations. i strongly believe in that is to some extent based on the fact that i know some of the people believe that th