federal reserve responded to legislation passed by congress in december of 2014 related to the scope of the federal reserve small bank holding company policy statement. specifically the federal reserve board issued an interim final rule and a proposed rule to implement the public law 113-250. effective immediately the interim rule adopted by the board excludes small savings and loan holding companies with less than 5 million in consolidated assets which meets certain requirements from the board's consolidated regulatory capital requirements. thus putting them on par with similarly situated bank holding companies. the federal reserve board also issued a notice of proposed rulemaking that would raise the asset threshold from 500 million to 1 billion for determining applicability of the small holding policy statement. and expanded its scope to include savings and lone holding companies. it facilitates the transfer of ownership for community banks by allowing holding companies operate with higher levels of debt and that's lower levels of consolidated capital than would otherwise be allowed. additionally the federal reserve board took immediate steps beyond what was required in the legislation

johnson wanted another liberal as that would give him control of the federal reserve board. he comes with bremmer. calls russell long over. he has a manila folder. he says, i have a candidate for the federal reserve board vacancy. he describes him. he said, and he is from louisiana. >> russell says, louisiana? he says, i want you to introduce him to your committee. he hands in the folder. he says, russell, you are a great man to do this. [laughter] it takes courage in one sense. he used to say men are rooted by love and fear. >> that was his genius to know how much to apply. “the triumph and tragedy.” a personal memoir by the top domestic advisor, joseph califano. ♪ >> lynsey addario, a pulitzer prize-winning photographer, is here. she is credited with changing the way we view conflict zones. she has documented human rights issues and the plight of women. she was kidnapped in libya while covering the civil war. that inspired her to write her first memoir. it is called, “this is what i am doing.” i am pleased to have her back at this table. tell me about writing a memoir. why

, but johnson wanted another liberals because that would give him control of the federal reserve board so he goes with bremer. calls russell long over. he's got a manila folder and says, russell, i have a candidate for the federal reserve board vacancy and he describes him and says, and he's from louisiana. russell says, louisiana? yeah, and i want you to introduce him to your committee. and russell says, absolutely, mr. president. johnson hands him the manila folder, russell long opens it and goes -- stuttering). he says, russell, you're a great man to do this. and russell says, all right mr. president. (laughter) it takes courage in one sense, but you're right -- he used to say men are moved by love and fear, a and you have to know the right mixture for each man. >> charlie: and that was his genius to be able to know exactly what each was and how much. >> that's right. >> charlie: to apply. that's right. >> charlie: the triumph and tragedy of lyndon johnson. >> charlie: lynsey addario is here a pulitzer prize-winning war photographer and has documented human rights issues and the pli

federal reserve responded to legislation passed by congress in december of 2014 related to the scope of the federal reserve small bank holding company policy statement. specifically the federal reserve board issued an interim final rule and a proposed rule to implement the public law 113-250. effective immediately the interim rule adopted by the board excludes small savings and loan holding companies with less than 500 million in consolidated assets which meets certain requirements from the board's consolidated regulatory capital requirements. thus putting them on par with similarly situated bank holding companies. the federal reserve board also issued a notice of proposed rulemaking that would raise the asset threshold from 500 million to 1 billion for determining applicability of the small holding policy statement. and expanded its scope to include savings and loan holding companies. the policy statement facilities the transfer of ownership for community banks by allowing holding companies operate with higher levels of debt and that's lower levels of consolidated capital than would otherwise be allowed. additionally the federal reserve board took immediate steps beyond what was required

first it is important to recognize that the federal reserve board is already the subject of audits. i don't think there is anything untoward happening at the federal reserve that we wouldn't know about quickly because of the oversight the federal reserve board already receives through different gal and other organizations. i think the audit process is already working effectively. the second thing i would say is the worry i would have about an effort is that it may hamstring the ability of the federal reserve board to respond aggressively in all times, but particularly in times of crises. we can see how apparent that was in the great recession. there is nothing more important than ending the recession and getting the economy moving again than the aggressive action taken by the federal reserve. we can debate the merits of those actions and even federal reserve board members having knowledged that everything they have done has positives and negatives but on that things seem to be a normal sleep positive and they only reason they could do that is because they had latitude. this is the th

first, i think it is important recognize the federal reserve board is already the subject of audits. and so i do not think there is anything untoward happening at the federal reserve that we would not know about pretty quickly because of the oversight the federal reserve already receives through different gao and other government organizations. the audit process in place is working effectively. the second thing i would say is the worry i would have about an effort like the one that covers men pa -- congressman paul is putting forward is it may hamstring the ability of the board to respond aggressively in all times, but particularly in times of crises. we can see how important that was in the great recession. there was nothing more important in the the recession and getting our economy moving again and the very aggressive actions taken by the federal reserve. we can debate the merits of those actions, and there is good and bad in all of it. even the federal reserve members acknowledge that the things they do have positives and negatives. the things they have done have been and or missi

two voting members of the federal reserve board see a rate hike looming today. president of the richmond fed jeffrey lacquer said june looks like an attention offer because the economy is strengthening. separately san francisco president john williams told the financial times the central bank is getting closer and closer to raising rates. and today, bond yields rose with a ten year treasury closing right around 2%. >>> the number of job openings jumped to a 14 year high. according to a new labor department survey there were more than 5 million job vacancies at the end of december. december was also the best month for hiring since before the recession and thomas perz said the job market is showing strength. >> in the depths of the recession, there were almost 7 job seekers for every job. now we're down to 1.7, so everything is moving in the right direction. you layer this on top of job numbers on top of gas prices on top of auto sales, and that all equals a confident eco fundamentals are very very strong. >> improved demand for goods and services has prompted emp

. >> up next, peter cook has an exclusive interview with the federal reserve board of governors lightcatholic university in washington state. tune in right now for that. we'll see you tomorrow. saynora! ♪ it's frustrating being stuck in the house. good thing xfinity's got 2 hour appointment windows. they even guarantee they'll be on time or i get a $20 credit. it's perfect for me... ...'cause i got things to do. ♪ ♪ oh, yeah! woooo! with a guaranteed 2 hour appointment window and a 97% on-time rate xfinity is perfect for people with a busy life. >> hello. i'm pimm fox. this is what i'm taking stock of this monday, february 9, 2015. president obama and german chancellor angela merkel met today in washington. the two leaders discussed finding a resolution to the conflict between russia and ukraine, among other topics. president obama says the united states is examining all options. >> the possibility of lethal defensive weapons is one of those options that's being examined. but i have not made a decision about that yet. >> no matter what we decide, the alliance between the united

. >> up next, peter cooke has an exclusive interview with the federal reserve board of governors lighttholic university in washington state. tune in right now for that. we'll see you tomorrow. ♪ >> hello. i'm pimm fox. this is what i'm taking stock of this monday february 9 2015. president obama and german chancellor merkel met today in washington. the two leaders discussed find finding a resolution to the conflict between russia and ukraine. among other topics. president obama saysed united states is examining all options. >> the possibility of lethal defensive weapons is one of those options that's being examined. but i have not made a decision about that yet. >> no matter what we decide, the alliance between the united states and europe will continue to stand. will continue to be solid.

the us government to my knowledge where do these financial stability board reforms fit the us regulatory system? does the federal reserveruth and resume data directives or suggestions or what? and what statutory basis does the fed have to implement the financial stability board form verbatim? do you think further the decisions are important enough that they should be fully vetted by the fs oc before being implemented? >> you can see the participate, including the administration of the regulators. nothing that is decided has a factor in the was relevant agencies proposals which are publicly that it to normal public comment process. those recommendations have no force

it's both the board and all of the federal reserve banks and the consolidated federal reserve system. >> so they do exist? >> they do exist, senator. >> just my last point. it's obvious to me that the audit the fed effort is to not address auditing the fed, because the fed is audited and every day you publish the qsep numbers of the things that you own and the -- >> correct. >> credit facilities you put in place during emergency, all of that is audited now. so to me, it's an attempt to allow congress to be able to put pressure on fed members relative to monetary policy. and i would just advocate that would not be a particularly good idea and it would cause us to put off tough decisions for the future like we currently are doing with budgetary matters, do you agree with that? >> i strongly agree. as i indicated -- well, let me say more generally, i think if you look around at the globe in modern times, and you consider every country that's gone through a period of chronic high inflation or hyper inflation, what you will find is, a central bank that was pressured to print money by -- >>

liz: so besides being a 28-year bank ceo veteran and a former philadelphia federal reserve board members a guy who just launched a new hedge fund that's focused entirely on small and mid cap banks. david: since its inception in march 2013, the fund is up over 32 percent, outperforming its bench benchmark by 13%. bluestone financial institution fund's chairman and ceo joining us now. congrats, ted. when i first heard about this, i thought, gee, you really want to go into a sector of banking that i'm hearing is being hurt a lot by all these new regulations from dodd-frank? what do you say to that? >> well, we actually think this is a sector which has tremendous opportunity partially because of what you just said. m&a activity is picking up in this country. last year there were 275 acquisitions, this year we're thinking there's going to be 325, 350 bank acquisitions. this is not only are people going to make money owning bank stocks, but a rising tide is going to lift all boats in this case. we really like the space because of the m&a activity. we also like it because this sector is very w

year with the board in washington to offer perspectives on their economic circumstances, and the needs of low and moderate income communities, and consumers. i hope the entire federal reserve system, the 12 regional banks, as well as the board in washington, will engage community leaders way more than they have in the past, will do what you have done by setting the tone in washington and incorporate diverse -- the diverse perspectives into their decision making. we too often hear concerns that the fed is a system that is run by and to benefit the very largest banks. last november i held a subcommittee hearing on one facet of this regulatory capture. the hearing explored concerns about the culture of the banks, and the regulators. a regulatory culture that is fair and tough that challenges group think that produces rules and regulations designed to strengthen the financial stability of our economy will protect americans' financial interests. i applaud the fed for finalizing strong rules for the nation's largest and riskiest financial institutions. i encourage you to move forward to finalize outstanding proposals so that everyone will benefit from the certainty, the certaint

the us government to my knowledge where do these financial stability board reforms fit the us regulatory system? does the federal reserve truth and resume data directives or suggestions or what? and what statutory basis does the fed have to implement the financial stability board form verbatim? do you think further the decisions are important enough that they should be fully vetted by the fs oc before being implemented? >> you can see the participate, including the administration of the regulators. nothing that is decided has a factor in the was relevant agencies proposals which are publicly that it to normal public comment process. those recommendations have no force. unless we go through old rule-making process but there's a good reason for us to participate these international forms. financial markets are global. if we take actions to stiffen supervision and regulation states and other major financial centers that packets to get similar ways we just see activity out of our borders to other parts of the consistent systems so we do want to buy discussions that lead all countries to work harmoniously together to try to

issue and ss whether the -- and assess whether the leadership staff is on the same page as the federal reserve boardank you, mr. chairman. >> mr. chairman, thank you. always last. hopefully not least. chair yellen, i want to thank you for your patience and your responsiveness. i was to tempted to ask her definition of patients. i won't do that today. instead, i will look to the future. senator warner outlined one of the concerns i have. we always seem to be fighting the last economic war in the united states congress. you are a very astute and very respected student of the american economy. is what you do every day. i will give you a chance -- you have received a lot of advice from this panel. i will give you a chance to give us some advice. when you look at leading and lagging indicators, especially leading indicators, what troubles you and what keeps you awake at night about the american economy in the next 10 to 15 years? what advice would you give to the congress to address those concerns you have looking right now at those indicators? >> i said on a number of occasions that the rise we have see

board, fsd, plays an important role in implementing financial reforms. including completion of capital framework that you alluded to four banks. the federal reserve is a member of this fsd, the financial stability board. given that the financial stability board is not accountable to congress or to any branch of the u.s. government, to my knowledge where do these financials stability reforms sit in the u.s. regulatory system? my question is, does the federal reserve treat them as mandated directives or suggestions or what? on what statutory basis does the fed have to implement the financial stability board's reforms for bid and question mark do you think that the fsb decisions are important enough that they should be fully vetted by the foc before implemented in the u.s.? they are all tied in. >> a number of u.s. regulatory agencies participate in the fs the, including the use administration -- fsb, including the use administration and regulators. nothing that is decided in fsb has affected the united states unless relative agencies proposed rules and those are publicly vetted through the normal public comment process and the role making process.

but in that case, we have a lot of data compiled by the federal reserve board of consumer finances on how much assets, how much capital gains people have in their portfolios. we can make an assessment of death and get some idea of what capital gains unrealized capital gains are at the time of death and we know what the tax rate is we could calculate roughly what the revenue estimate will be. you might have a big variance on it but first, you would know it would raise revenue, at least before, in that case, i think you could say it raises revenue certainly before including any kind of macroeconomic effects. and then if you were to apply dynamic scoring to that issue in the models, i would say, well, we're cutting the tax -- we're raising the tax rate on capital. there would be less saving less investment. that would hurt economic growth. in the real world, what we're doing is we're raising the tax rate on capital, but we're also removing the single biggest loophole in the individual income tax which results in a huge amount of unproductive tax sheltering and we don't have a good idea o

now having said that, i do think policy, both monetary policy what the federal reserve board does and fiscal policy, what the administration and congress have done. i've also contributed. i think the very what you could call muscular response to the recession, the great recession in terms of lowering interest rates, providing liquidity to financial system through fiscal stimulus, through efforts to support the auto market and the housing market. you know there was good and bad in all of that. but in general, it was quite good. and distinguishes our economy and our response to the recession from other parts of the world, like europe or japan, for example. and so policy also, i think, has played a role. most fundamentally it's american businesses and companies that are competitive, strong, and you can see it in their hiring and their investment. >> first call from mark zandy chief economist at moody's. jim is a democrat. good morning. >> yes, good morning. thank you for taking my call. >> sure. >> i would like to ask when the sequester kicked in and the federal reserve brought the inter

board reforms fit in the u.s. regulatory system? my question is, does the federal reserve treat them as mandated directives or suggestions or what and what statutory basis does the fed have to implement the financial stability board's reforms verbatim? do you think further that the fsb decisions are important enough that they should be fully vetted by the fsoc before implemented in the u.s.? >> well, a number -- >> two are or three questions. >> a number of u.s. regulatory agencies participate in the fsb, including the administration and -- >> sure. >> other regulators. nothing that is decided in the fsb has affect in the united states unless the relevant agencies propose rules and those are publicly vetted through the normal public comment process and our rule making process. those recommendations have no force in the united states unless we go through a rule making process. but there is a good reason for us to participate in these international fora. financial markets are global. if we take actions to stiffen supervision and regulation in the united states, and other maj

a year with the board in washington to offer perspectives on their economic circumstances and needs of low and moderate income communities and consumers. i hospital entire federal reserve system the 12 regional banks as well as the board in washington will in gage community leaders way more than they have in the past and will do what you have done bisseting the known washington and i corps rate diverse perspectives into their decision-making. we often -- too often hear concerns that the stead a system that is run by and to benefit the very largest banks. last november, i healed subcommittee hearing on one facet of this, regulatory capture. hearing explored concerns about the culture of the banks and regulators. a regulatory culture that is fair and tough that challenges group think that produces rules and regulations designed to strengthen the financial stability of our economy and protect americans' financial interest. i applaud the fed for finalizing strong rules for the largest and riskiest financial institutions and encourage you to move forward to finalize outstanding proohsals so that everyone -- proprosals so everyone will benefit from the certainty of vague pop

touche to review the balance sheet that is contained in the annual report for both the board and the federal reserve takes for the systems. >> so they do exist? >> it is obvious that the fed's effort is to do not address auditing the fed and every day you published the things that you own and the credit facilities and all of that is audited now. so with said members relative to monetary policy. that is not a particularly good idea causing it to put off tough decisions to you agree? >>. >> said if you look at modern times with chronic high inflation or deflation of what you'll find is the ability to print money by politicians. >> with a greater transparency with the regulatory area. so the is the area we should focus over the course of the next several months so we can fully understand how you go about the process. that they should be a far more to transparent. >> thank-you chairman for your testimony and hard-working and dedication and. that is the driving force behind the recovery but i don't into your position in. you end members have the important decisions to make the me urge you to wracked with

board reforms fit in the u.s. regulatory system? my question is, does the federal reserve treat them as mandated directives or suggestions or what? and what statutory basis does the fed have to implement the financial stability board's reforms verbatim? do you think, further, that the fsb decisions are important enough that they should be fully vetted by the fsoc before implemented in the u.s.? that is two or three questions but they are all tied. >> so a number of regulatory agencies include in the fsb including the administration and other regulators. >> sure. >> nothing that is decided in the fsb has effect in the united states unless the relevant agencies propose rules and those are publicly vetted through the normal public comment process and our rule-making process. so those recommendations have no force in the united states. unless we go through a rule-making process. but there is a good reason for us to participate in the internationalz financial organizations, if we take action in the united states and other major financial centers don't act in similar ways we wil

federal reserve that will come out of your committee? >> we have to see what develops help people vote and what we propose. >> do you think democrats will be on board>> depends on how it is framed and what it is. >> all right and i appreciated very much. the first of many hearings on the fed and others in the banking committee. >> thank you both very much. you can watch us live forever you are. bloomberg tv is on roku players and android tv streaming for free. also on your phone and tablet. up next, we will take you to athens where erik schatzker we'll have details on the greek bailout extension period tonight on charlie rose on bloomberg, larry fink for the hour. chairman and ceo of black rock. the world's largest asset manager it oversees more than $4.6 million. they discussed greece and the private sector. >> in 2010, if greece fails in the private sector, most of the greek debt. today, 7% of the greek debt is held by the ecb, greek banks, and then you have the imf, who has a huge loan outstanding to greece. it is not a private sector problem. >> more of that interview tonight at seven: 10 -- 7:10 eastern time. ♪ >> here are the top stories we a

a year with the board in washington to offer perspectives on their economic circumstances and the needs of low and moderate communities and consumers. i hope the entire federal reserve system, the 12 regional banks as well as the board in washington, will engage community leaders way more than they have in the past. will do what you have done by setting the tone in washington and incorporate diverse perspectives into their decision making. we often dewe too of often hear concerns that the fed is a system that's run by and to benefit the largest banks. last november, i held a subcommittee hearing on one facet of this, regulatory capture. it explored concerns about the culture of the banks and the regulators. our regulatory culture that's fair and tough that challenges group think, that produces rules and regulations designed to strengthen the financial stability of our economy and protect americans' financial interest. i applaud the fed for finalizing rulers in nation's largest and riskiest institutions. i encourage you to move forward to finalize outstanding proposals so everyone will benefit from the certainty of having appropriate rules in place. it's been more th

board an international flight. federal ail gents took him into custody just before takeoff. he has been charged with making false statements in a terrorism investigation. investigationors say he had no hotel reservations or friends there. the fbi also says he denied knowing one of the other men, though the fbi said he had been communicating via twitter. in just the last two years, david, the justice department says about 20 americans have tried to either go to syria to join terrorists or send materials to them. >> but denied knowing the other men. martha raddatz, thank you. >>> now, to the blockbuster headline from hollywood. the heavy weight no longer in charge. tonight, the head of sony pictures amy pascal who joked over e-mail who joked over e-mail about president 0obama, tonight, the job is no longer hers. here's abc's chief business correspondent rebecca jarvis. >> reporter: tonight, the hacking scandal touching everyone from president obama to angelina jolie, now taking down the head of sony pictures entertainment, amy pascal. one of the highest ranking women in hollywood. three months ago, a cyber attack allegedly by north korea, making her private e-mails public including conversations mocking

both the board and all of the federal reserve banks and the consolidated federal reserve system. >> so they do exist? >> they do exist. >> my last point, it's obvious to me that the audit the fed effort is to not address aweding the feth because the fed is audited and every day you publish the numbers of the things that you own and the credit facilities that you put in place during an emergency. all of that is audited now. to me it's an attempt to allow congress to be able to put pressure on fed's members relative to monetary policy and i would just advocate that will not be a particularly good idea and would cause us to put off tough decisions for the future like we are currently doing with budgetary matters, do you agree with that? >> i strongly agree. as i indicated -- well let me say more generally, if you look around the globe in modern times and you consider every country that has gone through a period of chronic high inflation or hyperinflation what you will find is a central bank that was pressured to print money by politicians who are unable to balance the budget. >> i thank y

board. whether you're looking at payrolls, the participation rate or wage growth. so the focus really turns to what does the federal reserve do next? dennis lock hart, the atlanta fed president, also a voting member of the company, gave us a little bit of an idea. he just finished talking and the takeaway from his remarks is that he's keeping options open for a june interest rate increase. he said public expectations for inflation have held steady. that's compared with market-based expectations. he also said don't ignore what's going on in europe, even as its effect will likely be limited. >> give us a summary of the reaction and the market, the fixed number world moved -- income world moved immediately on those numbers. >> absolutely. you saw an immediate she'lloff in short-term debt -- selloff of short-term debt. the two-year yield, price goes down, so yield goes up. so you're seeing a move up in the yield. thin crease right there, to this level, is the big nest about two months. it went from 52 basis points to almost 64. we went above that line at one point. currently right about 63.55. longer term, if you look at how t

board. >> yeah. >> do you have to bring forward your expectation that the federal reserve is going to increase interestn september? >> i mean i think june is certainly possible and the probability of june has gone up with this report. i think if it had been a weak report even just a moderate one, then i think the probability of june would have gone down a lot. that said, i still think that, you know, despite the improvement the labor market inflation is 0.7 percentage points below the target headline inflation is probably going to be negative or zero wages, you know, even with this correction of the december, you know, downward surprise, which turned out to be completely spurious spurious, still 2% or a little more than 2%, the same rate we've seen for five years. if you look at all the wage indicators together we haven't made any headway in terms of the growth of wages in five years and it's still pretty far below the 3% to 4% range that janet yellin basically indicated was a normal pace. >> so no reason to think that 2.2 is an indicator of an -- a real sustainable acceleration in wages. >> i don't se

board and look at it though. 18,200 is where we are this tuesday morning. janet yellen said we are unlikely to raise rates for at least the next couple federal reserve meetingsd guidance will let you know what we are up to. up goes the market. where is the price of gold this morning? below $1200 an ounce. ali baba. what you are looking at is very close to the low of this calendar year. higher profits of toll brothers. dave build upscale homes. they've raised the forecast. up you go. two republicans they are asking chairman to delay the vote on regulating the internet. >> we respectfully request that they release the 332 page publicly and allow the american people a reasonable period to carefully study it. judge andrew napolitano is here. he and i alone recognize a split incentive. the government wants to issue these rules and impose these rules to regulate the internet like a utility. >> hold on a minute. >> here is what the administrative procedure act says. what famous they must do when they are going to change their rules. publish them forth 30 days. congress could, by a majority vote, and both houses interfere with, modified or even block those rules. th