i am also firmly committed to the independence of the federal reserve in conducting monetary policy. that is why i am particularly troubled by the decision in september of 2011 to reinvest the proceeds from maturing federal agency debt into new federal agency debt, instead of allowing them to decline as intended. this reverse occurred amid intense pressure from special interest groups to support the ailing housing market. when the fomc deals and securities other than treasurys, we purchase agreements in reverse. the federal reserve is allocating credit among different sectors of our economy. credit allocation exposes the federal reserve's political interference. to maintain the independence of the federal reserve and to ensure frederick -- credit neutrality, the sound dollar act requires the fomc to deal in treasurys and repos unless the fomc finds unusual circumstances exist. they could then purchase other securities, so long as they are liquidated within five years after the unusual circumstances. looking ahead to the next crisis, it is important to note that in its nearly century o

federal reserve which has cooperated with them. so yes, i think we should reduce the deficit, but to talk about doing that by cutting social security and medicare to the exclusion -- in fact, many of my colleagues want to spend more on the military as a great gift to the world, they should set interest rates for regard with no impact on employment, and i think the country would benefit from that kind of debate. >> i thank the gentleman. let me simply say that i think we could address both of them. i don't think they're mutually exclusive. as you know, i have a son that served in the marines, and -- >> chairman, i was simply responding to what you said, and you are representative of a large group that talks about entitlement, and the military only comes up as an afterthought. >> well, i think it needs to be a grand bargain. we've discussed that and i think we agree on that. everything ought to be on the table, but without entitlement reforms, we won't get there. >> are we going to continue this debate after our five minutes? >> mr.

these slides will be posted on the federal reserve's website, federal reserve.gov.s we go through. and so if you need extra copies or -- by all means, do that. and as president knapp said, i'm going to be talking for a while from the presentation, but at the end, i hope we can have some questions and answers. so let me get started. what i want to talk about in these four lectures is the federal reserve and the financial crisis. now my thinking about this is very much conditioned by my experience as an economic historian. i think when you talk about the issues that just occurred over the last few years, it makes the most sense to think about it in the broader context of sfrl banking as it's taken place over the centuries. so even though we're going to be focusing a good bit of the lectures, particularly next week, on the financial crisis and how the fed responded, i think we need to go back and look at the broader context. so as we talk about the fed, we'll be talking about the origin and mission of central banks in general. and we are looking at previous financial c

this is why the federal reserve is described as having to do a mandate. the employment mandate, reflected in the employment act of 1956 required the federal government to pursue policies to promote maximum employment. the price stability mandate reflected rising public concerns about price inflation in the 1970's. when thinking about the federal reserve, i recall the economist robert modell. "to achieve a policy outcome, you must use the right policy." here in 2012, chairman bernanke and others recognize monetary policy is the right lever to maintain the purchasing power of the dollar. they declared inflation rate was prime mayorly -- mainly determined by monetary policy. they did declared the maximum level of employment is largely determined by nonmonetary factors. congress delegates monetary policy to the federal reserve and should hold it accountable for its conduct and monetary policy. however, it makes no sense for congress to charge the federal reserve to control what it cannot control, except in the very short term, monetary policy cannot boost real

it reforms the federal reserve in several important ways. specifically, the sound dollar act replaces the dual mandate with a single mandate for long-term price stability. it increases the fed's accountability and openness, it diversifies the federal open markets committee, it insures credit neutrality for future fed purchases and institutes congressional oversight of the consumer financial protection bureau. critics of a single mandate often charge that focusing on a sound dollar implies the federal reserve will now ignore the employment needs of americans. it's just the opposite. americans can only maximize our real economic output with long-term price stability, thus, protecting the purchasing power of the dollar provides the strongest foundation for lasting economic growth and job creation. a mandate for price stability gives the federal reserve the right goal but does not alone insure the federal reserve achieves price stability. that requires the fed to move away from discretionary regime and back toward a rules-based regime. in january

federal reserve bank in it. and then a board of governors which oversees the whole system is in washington, d.c. notice by the way how many of the little black dots are to the right. in 1914, most of the economic activity in the united states was in the eastern part of the country. now, of course, it's much more even, but the reserve banks are in the same locations as they were in 1914. but anyway, the point here, the value of this structure was, again, creating a central bank where everybody, all parts of the country would have a voice and where therefoinformation ab aspects of our national economy would be heard in washington. and that is in fact, still the case. when the fed makes monetary policy, it takes into account the views of the federal reserve banks around the country and, therefore, we have a national approach to banking policy. so the fed was established in 1914. and for a while, life was not too bad. the roaring '20s. the 1920s, this is called the charleston, i think. "life" magazine. you've never

the federal reserve stress tests are due out in just a few minutes. let's get back to steve liesman and ayman breaking down the very latest. >> we just got releases from u.s. bank corp saying they will have a 6% dividend boost and have a 100 million share repurchase through march 2013. this is a release from the company. obviously that means they passed the stress test. pnc passed the stress test. bank of america passing the stress test but saying they did not ask to release the -- sorry, to raise the dividend or do a share buyback. there's the jpmorgan news, coming out at 3:00, and saying that they increased their dividend and their share buyback. we're waiting for the stress test at 4:30, which were supposed to come out on thursday. the reasons why it's early, a little bit unclear at this time. >> steve, let's go through some of the so-called stress. i think it's really important for people to understand how stressful the federal reserve sort of scenario was. they were looking at, what, 13% unemployment. >> right. >> they were looking at a stock mar

i am also firmly committed to the independence of the federal reserve in conducting monetary policy. that is why i am particularly troubled by the fomc decision of september 2011 to reinvest the proceeds from maturing federal agency dead into new federal agency debt instead of allowing the holdings to decline as originally intended. this policy reverse happened amid pressure from special interest groups to support the ailing housing market. when the fomc deals in securities other than treasuries, we reverse purchase agreements and the federal reserve is allocating credit among different sectors of our economy. credit allocation expose of the federal reserve to political interference. to maintain the independence of the federal reserve and to ensure credit neutrality, the sound dollar act requires the fomc to deal only in treasurys, repose, and reverse repos unless the fomc finds an exit and circumstance exists. -- exigent circumstance exists. so long as this will be liquidated within five years after the unusual circumstance. looking ahead to the next crisis, it's important to know --

we know we'll get the results of the federal reserve stress test this week. jpmorgan announced it is increasing its dividend to 30 cents a share. that's up from 25 cents a share. they're increasing the dividend, and also announcing a $15 billion buyback. jpmorgan just coming out with this. we're waiting for the result out of the stress test. but clearly they've gotten the nod from the head that their capital ratios are very, very strong and are able to raise the dividends. we've been waiting for more banks to do the same. my bet is this is going to be the first of several dividend increases we hear about this week. let's get to steve liesman. he's got the breaking news out of jpmorgan right now. >> essentially what jpmorgan is saying, they got a clean bill of health in the stress test. they're kind of waving it around in the form of this press release which says they're going to be upping their dividend from 25 cents to 30 cents. that's a 20% increase in the dividend. and a $15 billion buyback, which is great aggressive, maria. i don't know if you said this,

still, the federal reserve chairman tells congress the economy is doing better than expected. >> tom: that optimism had investors cashing out of gold. the yellow metal posted its biggest one-day drop this year. but what about bonds? are they still a safe bet? >> if you own a bond fund and its in long-term bonds, you can lose 10%, 20%, 30%. >> tom: it's "nightly business report" for wednesday, february 29. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: captioning sponsored by wpbt >> susie: good evening everyone. ben bernanke said today the u.s. economy is doing better, but higher gasoline prices could temporarily reduce consumer spending. the chairman of the federal reserve was on capitol hill speaking to congress, updating lawmakers on the state of the economy. in a word, tom, he sees "modest" growth. >> tom: susie, bernanke's comments came shortly after the government reported that the nation's economy grew by 3% in the last three months of last year-- higher than previously thought. also today? the central bank's s

right so looks like the federal reserve think of being everybody's punching bag and they're coming out with a full social media campaign to show you the softer more communicative side of ben bernanke they've decided to take on twitter with the name at federal reserve and ben bernanke he is so himself going to be hosting online lectures with the hope of indoctrinating the college crowd into his line of thinking so of course we just couldn't help but imagine what the fed social outreach would look like and in a low to show dream world of other government accounts are any indication i think reality might actually prove to be better than we can even imagine it but only time will tell so in the meantime this is how we imagine the federal reserve's presence on twitter and obviously if the federal reserve longs to see relatable they're going to have to come up with a cool abby for bernanke e but the threat is new at this you would obviously be a few months behind trying to ride the playing weight and like anybody just getting their feet wet with twitter the fed is sure to be obsessed with has

talked with a lot of high praise about the private sector before the put a reserve and we need a federal reserve and he painted this whole big picture about how there's really no reason for the reserve up until the early part of the ninety's hundreds and then he just spun on a dime and said but then there was just too much volatility and now we need a full reserve and he didn't make his case and i think that's going to be one of the new stories that you're going to see over the next week is. ben bernanke he. is going to have to adjust his second picture to respond all the criticism of his first lecture no other cause professor was going to do that he didn't he didn't make a very persuasive case interesting but if we do want to talk about the private sector and what's going on there we've seen a lot of we saw greg smith write come out and write this op ed in the new york times called and sacks and now we see another person doing it what is her name i had it right now i don't know from where thank you jacki zehner there we go jack you better stick around i don't know if you want to call them whist

photos are basically and he talked with a lot of high praise about the private sector before the federal reserve about how we did need a public reserve and he kind of this whole big picture about how there's really no reason for the reserve up until the early part of the ninety's hundreds and then he just spun on a dime in but then there was just too much volatility and now we need a full reserve and he didn't make his case and i think that's going to be one of the the new stories that you're going to see over the next week is. you know ben bernanke you know to sort of address her name he is going to have to adjust his circle have to respond all the criticism of his first lecture and no other college professor probably is going to do that he didn't he didn't make a very persuasive case interesting but if we do want to talk about the private sector and what's going on there we've seen a lot of we saw greg smith come out and write this op ed in the new york times to take down kaufman sacks and now we see another person doing it or is her name i had it written i don't know if that's the word thank

and so the picture shows 12 federal reserve districts that we still have today and each one has a federal reserve bank in it and then a board of governors which oversees the whole system is in washington d.c.. notice by how many black dots are to vote right. in 1914 most of the economic activity was the eastern part of the country and now it is much more even but reserve banks are in the same location as 1914. the point here, the value of this structure was again creating a central bank where everybody in all parts of the country would have a voice and where information about all aspects of the national economy would be heard in washington and that is in fact still the case when the fed makes monetary policy. it takes into account the views of the federal reserve banks around the country and therefore we have a national approach to making policy. so the fed was established in 1914 and for a while life was not too bad. the roaring '20ss, the charleston, i think. life magazine. never heard of that. a very famous magazine for a long time. anyway the 1920s, so-called roaring 20s was a period

economy, the federal reserve in november agreed to extend and modify the terms of its swap lines with other major central banks and it continues to monitor the u.s. financial institutions. a number of constructive policy actions have been taken of late in europe including the european central bank's program to extend three-year collateralized loans to european financial institutions. most recently european policymakers on a new package of measures for greece which combines additional loans with a sizable reduction of greek debt held by the private sector. however a critical challenges remain p to the euro zone, the resolution of which it to boost growth and competitive innocence a number of countries. we are in frequent contact with the count parts in xhuk and follow it closely. as i discussed in july, inflation picked up during the early part of 2011. a search for supply disruptions associated with the disaster in japan pushed overall inflation to 3% over the first half of last year. as we had expected, however, these factors proved transitionary and inflation moderated to an annual

this is a significant event in the history of the federal reserve. as chairman bernanke has stated, an explicit inflation could anchor inflation expectations. yet it are mains uncertain if the fed's recently announced inflation goal will achieve these objectives. while the fed -- while the fed was establishing this inflation goal, it was at the same time communicating contradictory signals about his commitment to that inflation target. the fomc minutes reveal that chairman bernanke indicated that he believed tin nation goal would not represent a change in the fomc's policy. in addition, the fomc has stated that it believes economic conditions are "likely to warrant exceptionally low levels for the federal funds rate at least through late 2014." in other words, the fed is signaling to market participants it expects to continue its near zero percent rate interest policy for the next three years. so is the fomc focused on targeting low interest rates or the new inflation goal? the inflation goal conflicts with keeping interest rates near zero, which tar

>> well, by that we mean when the fed, the federal reserve sets the so-called "federal funds rate" at ten basis points, where it is today, that more or less guarantees banks can go into the fed window, the discount window, and borrow at ten basis points. and then you take that money and you buy a government bond that is yielding 2% or 3%. or buy some corporate bonds that are yielding 5%. or if you want to really get aggressive, buy some australian dollars that have been going up. or buy some cotton futures. and this is really what has been going on in our markets. the cheap funding, which is guaranteed by the fed, the investment of that cheap funding into speculative assets and then pocketing the spread. and you can make huge amounts of money as long as the music doesn't stop. and when the music stops then all of a sudden, the cheap, overnight money dries up. this is what's happening in europe today. this is what happened in 2008. and then people are stuck with all these risky assets, and they can't fund them. they owe cash to theeople they borrowed overnight from or on a weekly basis

so the federal reserve, by owning $1.2 trillion in u.s. treasuries, is really facilitating this spending, and it seems like you all have the capability to give some discipline into the institutions here in washington that don't have the discipline internally, even if it was only a 10% reduction, and say, we're not going to buy that many treasurers, not going to do that much quantitative easing or whatever measure you're using. why don't y'all say no? >> because our mandate, given to us by congress, is try to achieve maximum employment and price stability. and that's what denser our interest rate. >> maximum permanent price stability. you've already said that we're facing very serious thing ifs we keep spending what we're spending. >> that's correct. that's why i'm here advocating to congress that congress take responsible action. >> well, you were independent and you're not indicating any discipline and disciplining us. thank you, mr. chairman. >> time of the gentleman is now expired. the chair now recognizes the gentleman from colorado, m

. >> it's an honor to ask a question for the last competent person to chair the federal reserve. but here's my question. it's a very simple one. you mentioned in your speech that you twhount of the biggest problems we have as a nation and i agree with you is that we borrow too much and we spend too much. then you went on to praise congress and the fed for the stimulus when the specific goal of the stimulus is to get us to borrow and spend even more. so if the problem is too much borrowing and spending, how is the solution that we borrow and spend even more? >> thank you. well, sometimes -- i don't know. there is a word for this but i can't remember it. it's a complicated medical word. sometimes you have to take a little medicine to make the medicine better. in a sense, it's a buying of time. >> the problem is worse if we go deeper into debt. >> i appreciate it. i need to let him answer the question. i appreciate you asking it. we have to continue to move. >> we hope zint mait doesn't ma worse. for the time being, you need a band-aid for the economy. and i think a reasonable treat

is now on twitter at i'm sorry i can't cut i need to see him last week the federal reserve is now on twitter out. girls are worried as they'll be able to inflate their tweets to two hundred eighty characters who also wait and their heads had a funny one thanks to the federal reserve arrival the value of all tweets will collapse by ninety eight percent in a few years someone else said between that from the twitter from jackal island at federal reserve we love that that for now thanks for our show don't forget to follow me on thanks for watching our show don't forget to follow me on twitter at lauren mr give us feedback at youtube dot com slash capital account and from everyone here thanks so much for watching and have a great night. wealthy british soil the sun. times because we don't. like the. markets why not. why no one's really happening to the global economy with much stronger or no holds barred look at the global financial headlines tune into cars report on r.g.p. . emissions free critique free.

so, in heeding those lessons the federal government and federal reserve topped the financial panic p.m. worked with other agencies and worked internationally with foreign central banks and governments. now one aspect of the crisis that i think maybe doesn't get quite enough attention is the fact that this really was first of all a global crisis, in particular europe as well as the u.s. was suffering very severely from the crisis. but it was also a very impressive example of international cooperation. and one particular date that i've singed out here is october 10th, 2008. as it happened on that day there was a previously scheduled ndus countries. it happened to take place here in washington. the g7 are the seven largest industrial countries. and the central bank governors and the finance ministers of met in washington. now, i'll tell you a deep dark secret these big i had profile international meetings are a terrible bore because much of the work is done in advance by the staff, and we have a discussion but there's a communique which has been written by the staff and it's simply fairly

most major american banks passed a big test by the federal reserve this week. the stress test simulates difficult economic conditions such as an unemployment rate of 13%. a decline of stocks of 50% and 21% decline in housing prices. 15 of the nation's largest banks passed the test including jpmorgan chase which raised its def dind. bank of america and wells fargo passed the test. citi and sun trust and met life failed. it was a week of momentous milestones. the dow closed above 13,000. the nasdaq finished above 3,000. the all time high is 5,000. later this the week the s&p topped 1400 that was thursday. the first time ever all of the indeck traded above those numbers at once. >>> the federal reserve's open market committee met on tuesday and took no action on interest rates but gave its view of the economy a modest upgrade. americans are still shopping. retail sales had the best gain in five months. climbing 1.1% for the month of february. the numbers were up 6/10 of a%. auto sales helped to contribute to the strong numbers. retail sales are important because t

round of their stress testing for the big banks nineteen banks admitted capital plans to the federal reserve as mandated by dodd frank and of those nineteen fifteen passed with alli financial met life sun trust and most surprisingly safety group failing a test aim to find out if the big banks had enough capital to weather an extended financial crisis reportedly even worse than that of two thousand and eight this includes a thirteen percent jobless rate a fifty percent drop in stock prices and a twenty one percent decline in housing prices so through be happy with the result sleep tight knowing that the big banks are ready to weather another financial crash or should we look to the past as a warning to the skies with means laura lister host of the capital account thanks for joining us tonight thank you for having me ok overall how should we feel about these tests right have they really done it so well in the past according to people i've talked about oh no we should not feel well and if we want to use the past as a model prior to two thousand a plan to a crisis we had banks and i think i thin

in particular, the federal reserve has greatly restructured our supervisoryokinnow very comprehensively at a whole range of financial markets and financial institutions so that we have a big picture that we didn't havecrisis. i mentioned in discussion of vulnerabilities the many gaps in the financial system. there were important firms like aig for example, but others as well that really had no significant comprehensive oversight by anything regulatory agency. the dodd frank act provides a kind of fail safe in that the council can designate by vote. it can designate any institution which it views is not being adequately regulated to come th federal reserve. and that's a process that's going on now. so there complex, systemically critical firms that have no oversight. likewise the soc can designate utilities like a stock exchange or some other major exchange to other agencies. so those gaps are getting closed. we went have the situation that we had before the crisis. another set of problems had to do with too big to fail in dealing with firms systemically critical. the approach with too b

each drawing has a short maturity and must be approved individually by the federal reserve. they are collateralized by the foreign currencies for which the dollars are swapped and our counter parties are the foreign central banks, not the commercial banks receiving the dollar loans. fed has also worked with the fsoc and other agencies who ploernt our financial institutions. notably u.s. financial institutions have very limited direct credit exposures to the most vulnerable euro area countries and u.s. money market funds have almost no exposure to those countries. there are some exposures arisings from the sale of credit default swaps on sovereign debt, but our assessment is that those are broadly hedged with ces and the other direction. and that the counter parties to those cds are broadly disburses and are strong banks in europe. >> although u.s. banks have limited exposurable to peripheral yarpian countrieser that exposure to the larger core countries is much more material, mo those funds remain structural little vulnerable despite steps taken since the recent financial cr

the first resolution plan ruled which was a joint rule-making under with the federal reserve, this is a joint authority we share with the fed, implements the requirements of section 165-d of the dodd-frank act. this section requires bank holding companies with total consolidated assets of $50 billion or more, and certain non-bank financial companies, that the new financial stability oversight council has the authority to designate a systemic. this is really a crucial, new authority that dodd-frank provides. you know, previously prior to dodd-frank, the fdic had authority to close insured banks. we did not have authority to close the holding company of the institution or the subsidiaries of the holding company. so one crucial new authority of dodd-frank is the ability to place the consolidated entity, the bank, the holding company, and the affiliates, into a public receivership. that's authority that did not exist before, and in addition, the new financial stability oversight council can designate any non-bank financial company as systemic and by doing so, one, it was subject to the fu

. >> reporter: timothy geithner was the head of the federal reserve bank of new york in 2008 when the credit crunch began taking hold. now he's the treasury secretary and is fending off criticism of the obama administrations legislative answer to the crisis: the dodd-frank financial reform law. geithner writes in the "wall street journal," quote, "these reforms are not perfect, and they will not prevent all future financial crises." end quote. but independent banking analyst kenneth thomas thinks geithner ignores his own actions during the 2008 crisis. >> with all due respect, secretary geithner has amnesia because the biggest reason why the crisis was so severe was because he at the federal reserve bank of new york and chairman bernanke and especially treasury secretary paulson at the time let lehman fail. >> reporter: secretary geithner has previously called 2012 a key year for the reforms as dozens of the rules will be written. for instance, the securities and exchange commission is working on the so-called volker rule. that would ban banks from using their own money to trade deriv

the federal reserve is not unusual. they are trying to find more accommodation where interest rates are close to zero. cutting the federal funds rate does not work. all of the central banks have similar tools to the ones we have, including the ability to pay interest on reserves, the ability to sell assets, and the ability to sterilize their balance sheet. we all have tools to withdraw that accommodation and to shrink the balance sheet. i think this is currently with the best available approach is in a world where rates are close to zero. we cannot go below 0. >> keep printing, basically? >> i know there has been some debate, getting used to the word printing. the amount of currency in circulation has not been affected by any of these policies. what has happened is that the amount of electronic reserves held by banks has gone up by a great deal. they are sitting there. they are not doing much. so far, we have not seen any indication that they have proved inflationary. >> does the federal reserve own goal? >> no. maybe a

is now on twitter at i'm sorry i can't cut i need to see i'm asking the federal reserve is now on twitter. word is they'll be able to inflate their tweets to two hundred eighty characters who also wait and see or have had a funny one thanks to the federal reserve arrival the value of all tweets will collapse like ninety eight percent in a few years someone else said the tweet that from twitter from jekyll island at a reserve we love that's it for now thanks for our show don't forget to follow me on thanks for watching our show don't forget to call me on twitter at lauren lyster give us feedback at youtube dot com slash capital accounting for everyone here thanks so much for watching and have a great night. it . all.

is now on twitter at i'm sorry i can't read his kind i need to see it must mean the federal reserve is now a twitter out. word is they'll be able to inflate their tweets to two hundred eighty characters who also weighed in zero had a funny one thanks to the federal reserve arrival the value of all tweets look lags by ninety eight percent in a few years someone else said the tweet that from the twitter of jackal island at a reserve we love that that for now thanks for our show don't forget to follow me on thanks for watching our show don't forget to follow me on twitter at lauren lyster give us feedback at youtube dot com slash capital accounted for everyone here thanks so much for watching and have a great night. down the official g.o.p. convention joined from the one called touch from the only choose dumpster. lights on the. radio. cheesemonger. russian streets now in the palm of your. question on the call to you george.

there is a picture of president will put -- woodrow wilson signing the federal reserve act in 1913. st important domestic accomplishment. domestic accomplishment. and again, why did they want a federal bank? it was to serve as a lender of last resort and tried to mitigate the panic that banks are experiencing every few years. secondly, to manage the gold standard, that is to take the sharp edges of the gold standard to avoid sharp swings in interest rates. that was the objective for the federal reserve. interestingly, the fed was not the first attempt by congress to create a central bank. there had been two previous attempts. in both cases, congress let the central bank die. basically the problem was that there was a lot of disagreement between -- what today would call main street and wall street. the people on main street -- you could include farmers -- feared that the central bank would be mainly an instrument of the muddy the interest in new york in philadelphia and would not represent the entire country. would not be a national central bank. both the first 27 attempts at creating

we are deeply disappointed with the federal reserve's announcement. we do not believe that the bank methodologies used are appropriate for insurance companies which operate under a different business model. so couple of big statements coming out just now. back to you. >> all right. thanks so much. let's start trading. financials on fire today after that big hike from jpmorgan with the dividend of 20%. the bank stress test revealing some weak links. citi group, sun life, met life. you sold some jpmorgan today. >> i've loved jpmorgan for a long time. i think that none of this news today was surprising that they would increase their dividend. we know they'd like to do a buyback. yet the performance of the stock i think makes the likelihood of being able to do the buyback at the scale they announced unlikely. they try to be judicious in their buying back stock. they were able to buy in the low 30s in the last quarter or two. >> so much for that. >> so much for that. now it's well north of book value as a pe multiple it's not expensive, but it certainly is

these are your headlines for march twenty first two thousand and twelve the federal reserve bank of dallas says dog frank did not end too big to fail and says we must downsize the goal he missed and the president's view the president's view this as some u.s. lawmakers are working to push back the timeline for a key part of dogbreath of both will rule the regulators and banks already appear to be hollowing out will look at what cost that comes meanwhile the poor design rule is reportedly gaining momentum this would restrict getting late what brokerage firms can do with customer money now before looking forward what about the unanswered questions and the accountability questions in the end of global bankruptcy and what we consider best of customer money we'll talk to william black he's a former regulator who oversaw prosecution of bankers for fraud during the s. and l. crisis to find out what it would take to see justice in this case meanwhile do you think we have enough lawyers in the us already we don't need anymore well you may be happy to hear this organization behind the law school admi

before coming to the federal reserve, he was at the imf. earlier in his career, he worked for kissinger and associates. he graduated from dartmouth college and from the johns hopkins school of advanced international studies. we are pleased to have secretary of the treasury tim geithner deliver his remarks which we -- which will be followed by a question and answer period. please welcome secretary of the treasury tim geithner. [applause] >> thank you and it is great to be back here at a time when we face some fundamental important choices about politics and economics. it is nice to see so many former colleagues here. i can see some of you and i want to pay tribute to my former colleagues at the new york fed who are eager somewhere. i know some of them are here. they are an exceptionally talented corps of the public servants, brave and creative in a crisis and it was my great privilege to work with them. as you know, i left new york for washington in november, 2008 at a particularly dark moment in american history. my timing was not good. [la

to college students about the federal reserve. meantime, treasury secretary timothy geithner is on capitol hill to talk international finance with congress. the web has changed the way we think about business and how we get things done. tonight's commentator says its time to apply that same re- thinking to corporate america. here's billy parish, co-author of "making good." >> ery dayy generation is told our prospects are bleak. these are tough economic times, but the world i have had a glimpse of is filled with jobs because there is so much work to do. today we need to rethink, redesign and rebuild every industry in a way that does good. from architecture to the automobile every part of our economy will be retooled for the 21st century. this is where the jobs are. for my book "making good," we interviewed hundreds of people working in diverse industries. re-imagining information technology, energy, education, the arts, health care, food, manufacturing and waste management is a multi- generational project that will employ tens of m