that's not what dodd-frank does. i think it's been discussed already today, but i think it's a little bit to letting the house burn down but not so much with managing the consequences of that. and there's one particular portion of the act that worries us quite a bit and michael got in a slight discussion about it earlier and ken brought it up again and that's really the incentives that are created from the act dealing with who pays for systemic risk. so the way it's sort of written if a bunch of firms fail and those monies can't be recovered from creditors and i don't know how you would recover them from short-term creditors who have already fled, the surviving systematically important financial institutions are going to make up the difference ex post. so what's the problem with this? well, it increases moral hazard because it creates a free rider problem. so that's not good. and it also increases systemic risk. why is that? because prudent firms are going to be charged more so they're going to be less likely to be p

i think it was a move led by barney frank. if you're going to release the other half you're going to need to make a commitment to foreclosure relief. that is where the $50 billion came from. unfortunately only a small fraction, but from a perspective of the original goal, unfortunately only a very small portion will be spent because it is poorly designed and executed. >> we have one last question. >> yes. what do you think if we had done , how do you think that would have turned out? do you think that would have worked better than trying the program? >> the cramdown was fortunately while outside, even more outside than the financial crisis of our jurisdiction. to be honest with you, it was not something that we really study their work done because it really was outside the scope. i think the concept of principal reduction, not as afraid as many art, including the treasury department. i think not withstanding the potential moral hazard implication that a good principal reduction program could effectively help achieve that goal

the dodd-frank action, rules were much more resilient.give you some examples of a large number of rules, money maket funds required to maintain 10% overnight liquidity, 30% 70 liquidity. this liquidity is not dependent on secondary markets which as we saw in 2008 froze but that is contractual either treasury obligations or securities maturing overnight, or within seven days. added a huge amount of liquidity. second, directors of funds are able to redemptions, something the directors and the reserve fund didn't have the authority to do before they break a dollar. this is important. damage to shareholders in the fund but it prevents what we saw in 2008 from a money market fund having problems of dumping in portfolios, securities into the market which begins the panic and affects the prices of all the other money maket funds. or prices our security. but we still have basically the same structure of money maket funds and the same problems that can lead to a run, even though we're more resilient today than we were two or three years ago. the c

i think it was a move led by barney frank. if you're going to release the other half you're going to need to make a commitment to foreclosure relief. that is where the $50 billion came from. unfortunately only a small fraction, but from a perspective of the original goal, unfortunately only a very small portion will be spent because it is poorly designed and executed. >> we have one last question. >> yes. what do you think if we had done , how do you think that would have turned out? do you think that would have worked better than trying the program? >> the cramdown was fortunately while outside, even more outside than the financial crisis of our jurisdiction. to be honest with you, it was not something that we really study their work done because it really was outside the scope. i think the concept of principal reduction, not as afraid as many art, including the treasury department. i think not withstanding the potential moral hazard implication that a good principal reduction program could effectively help achieve that goal

>> good morning, chairman bachus and remember frank.i'm curious how this will affect the international competitiveness of the united states. i want to focus in particular on the importance of strengthening capital regulation. a strong stable financial system is a precondition for a competitive u.s. economy. unfortunately in the years leading up to the crisis some large financial institutions provide credit intermediation to support the real economy. they exploited regulatory gaps and weaknesses for complex securitization structures and derivative instruments but little support for productivity by the market perception of too big to fail. they ss low-cost debt financing which they funneled into investment strategy. and economic resources into unstable financial activity instead of more productive uses like manufacturing, energy, technology and infrastructure. the full cost of the financial crisis are not known. we lost payroll jobs and homeowners suffered a 1-third decline in 2006 and nine million foreclosures started over the past four

dodd-frank addresses a lot of issues, and i mean, that's fine. they are interesting, but do you believe that the power existed within the federal agencies, that they could have stopped these bad loans from taking place in the first place without any further legislation? >> oh, definitely think they have the power to maybe not stop them, but certainly raise a standard for making loans, and i mean, that's the essence of bank supervision so the a bank supervisor feels the bank is taking too much risk, not controlling the risk, its job is to go to the bank and say so, and the bank works with the regulator to try to address it. they can do that. on the other hand, congress mapp, we were all on a housing crisis ewe forya. looking back, it's obvious, okay, but at the time if you really believed housing prices were going to keep going up, which almost everybody did, the pressure to raise those standards was not very high, and there would be political pushback in any of them if you tried to lower the standards in a way that deprives people from getting lo

the with dodd-frank -- with dodd-frank, you know, some of this is still being put in place.there are principles that are very good. one of them, for example, is at least dodd-frank embodies the principle of size-based capital requirements. that we've just learned we tend to like to bail out large institutions, so we charge them a larger capital rate. that counterbalances that their cost of capital is subsidized by -- >> so it's a good thing. >> so if i could stop you there. so one of the questions i had of the governor was just that, those sifis that are on the borderline, you know, and whether or not they would be subject to the same capital requirements, the big, big sifis, if you will. and the answer was, no, that there was a gradation there, and it seems to me that you're addressing that. >> in i think sliding scale capital requirements are a really, really good idea. i think that a cliff structure or a binary structure, you get into this argument of i'm on the line. >> right, right. >> and the sad thing about people that are on the line is that when they are setting the

out steps frank sinatra. frank sinatra, with his p.r. guy, jim mahony, they walk up the stairs.?" [ laughter ] "me." he said, "okay. let's go." jim mahony whispers to me, "i don't know how you got him. he says, "he pays me money not to do this." we go into the studio and i decided something. i learned something in broadcasting. never lie, when you're on the air. you could have done one of those phony things. "my old friend, frank sinatra, my pal." i said, "good evening, welcome to another edition of 'the larry king show,' my guest is frank sinatra. why are you here? why are you here?" and he said, i can still remember -- he said, "four, five years ago i was working in a town & country club nightclub in new york and i had laryngitis. it was closing night. i couldn't sing. and i called jackie up. jackie had the hottest snow television. i said, "would you come over and do a show? we got a whole crowd here. i can't make good. i can't sing." and jackie came over and did an hour. i walk him out to his limo lean in, i said, 'jackie, thanks. i owe you one. i owe you one.' i get to miami

avellino. >> "and i said, frank, what's wrong?" because i could hear it in his voice. "michael, bernie madoff..." i said, "he died." in a nanosecond, "he died." "...was arrested..." i said, "oh, no," and then another nanosecond-- "...sex crime or some [no audio], you know?" "...for stock fraud." >> smith: phones were ringing in palm beach, too. >> i received a call from an investor in aspen who said that he had heard that bernie was arrested. and i called bernie's office, and i called his secretary. and i said, "gee, we just got this really strange call." and she said, "no, no, everything's fine." >> smith: emails were flying. >> i read it. and then, i read it again. i was, like, in shock-- like, non-believing shock. and i thought he couldn't... he couldn't possibly have... this isn't true. it's impossible to be true." >> smith: it was the largest stock fraud in history. >> ( laughing ) i said, "oh, my." you know, in an instant, as with everybody else, you see everything just gone. ( cameras clicking ) >> mr. madoff, what you have

and a great letter from him, but frank sinatra, whom i'm a giant fan of frank sinatra. >> i was honoredd. i did the last televison interview with him. he wrote me a letter, we have reprinted in the book. >> jimmy: you were trying to have him on -- it's very hard to get -- >> jackie gleason was kind of like my mentor, he came down on miami beach. i started on miami beach, i was like 27 years old. i came down on the train when jackie took the train from new york to miami. it was a great trip. and i emceed the dinner ladies in the house right now? all the females make some noise >> you got it, buddy. hey, what's that? see frank sinatra?" >> jimmy: you got it. yeah, yeah. >> it's going to be a good night! [ laughter ] i -- i invited one of the girls. very nice girl, and we go on and see frank sinatra. now, remember, i'm poor. we're not making a lot of money. >> jimmy: local radio. >> so i got $20 to my name. so i parcel it out. let's see, he's picking up the check. $15 for the tip. $5 to get the car. okay. $20. i don't get paid until monday, but i'll survive. now, in the middle of the show

>> i went to a dodd-frank act and i don't think there is i direct application of dodd-frank to repo reforms. there is an initiative under the auspices of the federal reserve bank of new york, which is an industry initiative, which is working on reforming the way the tri party repo market works. but not directly related to dodd-frank. and the primary objective of the tri party repo market task force is to solve a sort of technical issue that arises in the tri party repo market during the day. in that market there is secure credit overnight between 5:30 p.m. and 8:30 a.m. and intraday between 8:30 a.m. and 5:30 p.m., and expose exposure of cash investors in the tri party repo market and is an unsecured exposure can give incentives to run in try party. so the task force is actively working on solutions to that. one of the factors that was often -- that has often been blamed to of contributed to some of the instabilities in the repo market. >> what you are telling me strikes me as one of the leftover piece of business we have not grappled with. >> yes. >> thank you very much, tobias . i would l

we appreciate the opportunities to provide the implementation of title vii of the dodd-frank act and we commend the committee for his diligent oversight of the new regulatory framework affecting derivatives. nfa is the voice of the internal investment industry and our members help tensions and endowments and other institutional's diversify their investments, manage their investments, and generate reliable returns to meet their obligations to beneficiaries. our members are active participants in the derivatives market. a strong interest in promoting the integrity of the proper functioning of these markets and increase transparency, competition and systemic risk mitigation. nfa recognizes the efforts of the cftc and sec in promulgating regulations called called for under dodd-frank. we believe it is imperative the regulators implement the rules in a straightforward, commonsense and workable manner to assist in these efforts. we provided regulators and we have submitted in connection with their testimony here today a blueprint which contains a detailed plan for adopting and implementing

>> we're not pushing for any repeal of dodd-frank right now. the industry is really -- >> i mean the section. >> 716. you know, we were against it totally during the enactment of the statute. if it disappears, we'd probably be very happy. >> okay. then mr. zubrow, your testimony was -- made a lot of this morning. i would just -- on page two of the testimony you talk about the regulatory pendulum has swung to a point that our risk is hobbling in the financial system and economic growth. you say that u.s. policymakers should focus on how much the regulations they proposed collectively reduce risk taken by financial firms and how this collective impact is likely to result or reduce the economy and job growth. and how many of these regulations have been rejected or referred by other countries. could -- what's putting u.s. firms at a competitive disadvantage? is it -- does fsoc have anything to do with this? is the fact that fsoc numbers are not coordinated or thinking in the global marketplace? i have causing problems. >> madam chairwoman, i think

i'm frank mallicoat. sydnie has the afternoon off. we begin with breaking news. >>> three firefighters have been injured battling a house fire in san francisco's diamond heights neighborhood. two suffered severe burns and have been transported to san francisco general, another is being treated at the scene. fire started at the first floor of a home on berkeley way about an hour ago and then spread to the second story. the fire is out but the extent of the firefighter's injuries is not known at this time. we hope to have a live report coming up shortly on that fire. >>> their fate sealed. the couple who confessed to the kidnap and jaycee dugard were sentenced an hour ago. allen martin is live in the newsroom with how long each will spend behind bars and what was said in the courtroom. >> reporter: it was a very, very emotional morning in the courtroom in placerville. decades of pain and suffering coming to a conclusion with the sentencing of phillip and nancy garrido today. phillip was sentenced to 431 years to life. that's the maximum

oh, yeah. >> frank ware, ladies and gentlemen! got a little body english in there. frank ware.

welcome, frank. i see that you brought a big aerial photograph with overly geology. >> it is a big google map with overly geology. the different colors depict the different formations or deposits beneath san francisco. san francisco is a young environment. it is a relatively young environment. the basement rock beneath san francisco is known as the franciscan complex or formation. it is throughout the city, most notably twin peaks, edge hill, telegraph hill. every once in awhile, you hear about those who make the news with a rock fall or landslide. usually occur in the telegraph and twin peaks. . above the rock are the soil deposits. the most common is dune sand. it is nothing but rocks that has been worn down from the sierras and deposited along the beaches. the wind blew that dune sand over most of the city. it is this mustard color. on the avenues, it is very thick. it can be up to 400 feet thick. as you moved south across slope boulevard, that is the tolar foundation. it was named after the first

frank and grace? >> are they hoping, anne, that by protesting, it might bring to light and maybe the charges might be dropped or are they just trying to prove a point? >> reporter: everybody would like the charges to be dropped, everybody being his family, taking a toll on the family and deshon's football program. we heard a statement last week that this says this is not reflective of him or the football program, negative attention to even them over in new mexico. so everybody would like to see the charges dropped, obviously, but the naacp concerned that this could show, you know, a broader trend of discrimination. >> very good. anne makovec is live in san francisco. thank you. >>> watch out this weekend. large crowds and big traffic problems are expected in san francisco. for the 41st annual gay pride weekend. events begin this afternoon including concerts, parties, as well as a parade. that's set for sunday morning. if you would like more information, head to cbssf.com. >>> >>> same-sex marriage is

they are just freezing up from his fear of what dodd-frank is turning into. let me just ask you directly. don't you think we over did it here? >> with all respect, i think that the dodd-frank derivatives title was very necessary. a market that is so large does affect the wheat farmer. that wheat farmer in can't is not going to be a swap dealer, not going to have to come into clearing or post margin on a proposed rules. if there's any doubts about the co-ops, we are working with the co-ops. because that's clear. that's congressional intent, but it is lowering risk because that wheat farmer actually lost out. they lost out when the financial system failed in 2008. and by the way, the regulatory system feel. it wasn't just wall street. it was the regular failed, too. and so that's i think is what's necessary. and appropriate. based upon a lot of public input we're going to get the rules finished and balanced. we've given more time here. i think that balance is important. but i think that this was very much appropriate because millions of americans were put at ri

though frank's eyes were failing he got to throw out the ceremonial first pitch. >> there was this bigom the crowd and it was awesome and he couldn't see them but he said soy, i could sure feel them." >> reporter: frank parker died last year. the only good part of that, his son says, is that he doesn't have to see what's happened to the team he loves. john blackstone, cbs news, los angeles. >> pelley: and that's the "cbs evening news" for tonight. for all of us at cbs news all around the world, good night. captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org

unh many moons ago. >> you and i should take later, huh, frank? >> 6'3", frank. nothing little about this guy. >> you got an inch on me. chris, have a good show. it starts at 7:00. >> bye. >>> there is a little bit of construction going on, some cool architecture last night here in the city. canstrucktion. it was the san francisco food bank's big fundraiser. 13 groups turned 50,000 cans of food into little works of art. i had think you will notice a little san francisco theme here. i had the honor of being one of the judges last night along with brian boitano. we had an architect, contractor, designer. the judge's favorite here is a cable car sculpted entirely out of cans. they call it the little engine that can. >> best use of labels went into this lombard street creation. the cobblestone streets, those are actually bean cans. >> you can't see it but on the back side of that, they have the golden gate bridge which was cool. and an honorable mention went to this one, fear the beard! that's right. that's giants pitcher brian wilson's trademark moustache and black

but until we really have implemented dodd-frank and the most important provisions of dodd-frank, i think we would be foolish to suggest that everything is fine. >> so that could take years? so we'll be in limbo for a number years. >> it will take some time in some areas, and rosario was just here to talk about the tremendous task and challenge really of taking a $600 trillion worldwide market, fully globalized, largely unregulated throughout the world but certainly in the united states and turning that into a regulated market with full transparency, reduction of counter-party risk through central clearing and business conduct standards for market participants. and those are going to take some time because we're going from unregulated to regulated and we're not riding on a clean sheet of paper because this market already exists. so there are a lot of challenges ahead. >> let's talk about dodd-frank, as you said you're tasked with writing 100 of the detailed rules that go with the bill. there's been a lot of missed deadlines as a journalist i'm very sensitive to that, missed deadlines and

that's because dodd-frank has a transsexual and they don't. dodd-frank has rules.hey have pension funds to type her retirement money as collateral for trades and they don't. that's a few examples. because of that, they risk capital and jobs fleeing this country and going overseas in. our economy and competitiveness. the overreaching policies that were codified in the dodd-frank encourage other to increase what they do come increase basically regulatory arbitrage to the keynote of the impact of these new regulations may be hard to measure, but that's precisely what they must do. but the total cost of the regulation and jobs and economic growth, which regulations address real problems and which ones simply a cost in this type of economic prospect analysis must be done now because the stakes are just too high to do so otherwise get it from. with that, i. >> 10. mr. meydenbauer. >> i'm putting up a small chair. this is the 50 top firms by market cap. in 2003, the u.s. had 51% of the total capitalization. he moved into 2006 in a draft 35% of total market capital station

grace and frank? >> all right. anne makovec in san francisco, thank you. >>> the suspects in that alleged police corruption case in contra costa county appeared in federal court this morning. norman wielsch, christopher butler and two others facing 38 criminal charges. those range from drug sales to embezzlement to bribery. while in court three of the men reconfirmed their pleas of not guilty and lombardi ended a not guilty plea, as well. their lawyers say they are pleased the fbi took over the case so men could get a fair trial. all four men will be back in court october 13. >>> and another twist in the oscar grant shooting. a new lawsuit claims emergency workers did not do enough to try to save grant's life after a former bart officer shot him. the suit by an oakland fire department employee says his colleagues failed to bandage one of grant's wounds. but the "chronicle" reports the interim fire chief has investigated the claims and calls them preposterous. >>> muni is investigating this afternoon after a bus sla

. >> tom: and you mentioned the swiss frank earlier. we see the dollar continuing to weaken and the swiss frank benefiting because of gold and what not. what does this portend for u.s. investors? >> you've got a lot of corporations working through switzerland and these corporations need to understand where those exposures are. from an investor point of view if you have weakening gens the swiss frank it's a good thing. the swiss frank has been intervened by the central bank to sell it off because it's over heating their economy. >> ed: wolfgang always appreciate it from the nasdaq. wolfgang koester with buyer-apps. >> susie: here's what we're watching for tomorrow: as we mentioned, the federal reserve's policy setting committee releases its decision and statement. then, fed chair ben bernanke holds a news briefing. we'll also see quarterly results from fedex and carmax. also tomorrow, hilary kramer is our "street critique" guest. email your questions to streetcritique@nbr.com. >> tom: the biggest changes to cigarette warning labels in a

jesus christ, frank. i got burns! what are you doing? >> anything can happen on a runway, dennis. >> nobody's gonna throw detergent in my eyeballs on a runway, frank! >> and you think that was bad. check out this tasty delight. you got to eat cockroaches next. >> you know what, man? screw this. i'm outta here. >> finished. >> jesus, rex, i didn't tell you to start eating yet. >> that doesn't disqualify me, does it? >> no, you're good. >> oh, hey, diary. listen, today was the worst day ever. i had an audition, and i didn't get the part, which is really, really strange for me. but then the casting director called, and they were, like, "we thought you were just better for a different part." and i was, like, "that makes more sense." >> cut, cut! >> what are you doing? that was great. >> what are you doing? why don't you do it like you did the first time? dee, this is just weird. >> this is what i do. i just talk into the camera about my life. >> are you kidding? you never do this. you have all these colors on your face, your mouth is going l

frank and sydnie? >> like to have a piece of that , huh?er: if you can get in early. >> groupon 2.5 years old, i don't know how much older it is? >> reporter: there's a lot of excitement right now over social media companies and we are still waiting on zynga the san francisco maker of farmville, mafia wars, twitter, facebook. linkedin got it all going a couple of weeks ago more than double in its first day but its shares down 17% now. >> what are they selling at now? >> linkedin right now $77 after closing at $94 on its first day. >> thank you. jason brooks with kcbs and cbsmoneywatch.com. >>> well, a trick to getting kids to eat more vegetables and new concerns over a superbug that is showing up in cows. randall pinkston has this morning's healthnet. >> reporter: scientists have discovered a new strain of the superbug mrsa. the research published in the lancet identifies a new strain in humans and in milk from cows. its genetic makeup is different from previous strains so standard tests don't detect it. scientists say the pasteurization of

i'm frank mallicoat. firefighters from the state are paying their respects to two fallen comrades at this hour. lieutenant vincent perez and firefighter paramedic tony valerio died fighting a blaze in san francisco's diamond heights neighborhood just last week. anne makovec is at st. mary's cathedral where services for men are just about to start. she joins us with more. anne, good afternoon. >> reporter: good afternoon, i'm here at gough and geary, st. mary's cathedral. you can see people lining up at the entrance behind me. thousands of people are here already waiting for the honor guard to escort the caskets down that aisle. about 6,000 people are expected to show up here at the church and it only seats about 2500 so it is going to be standing room only and you can see up there the flags being held between two ladder trucks. the service is set to start at 12:30 this afternoon. now, about an hour ago, a procession began in daly city. the two caskets draped with flags being carried out of the mortuary. t

frank has the morning off. we have traffic, weather. >> nice weekend. >> beautiful i was in walnut creek sunday. >> very nice there. nice and sunny in the valley. >> i was going to thank you for the weekend it was fantastic outside. >> we are going to see great weather, offshore winds, that will crank up the heat warm all the way to the coastline. pretty warm as you approach the coast. we will warm up a bit, 82 degrees, sunny, concord, san jose, 71 oakland, 66 degrees san francisco, complete look at the forecast coming up. right now giana and traffic. >> good morning i wish traffic was as nice as the weather a traffic alert westbound 237 at 85, lanes blocked due to an injury accident more details on this with a live look at the bay bridge. >>> 4:31 a.m. the former bart police officer who killed oscar grant is a free man this morning. >> our ann makovec is in los angeles this morning where we understand johannes meheserle was released from jail shortly after midnight. >> reporter: about 12:25 a.m., meheserle was

and that's it. [ applause ] hey that is -- that's pretty amazing, uncle frank. uncle frank?ah, jim? >> jimmy: okay. >> yeah, jim. >> jimmy: planking or dead? >> excuse me? >> jimmy: planking or dead? >> planking. >> jimmy: okay, very good. let's check with cousin sal right quick. okay, here we go. we got another pedestrian. now, we are 2 for 3 so far. again, we're playing "foreigner or not," where i try to determine if this is a foreigner or not. well, looks american. might try to put another foreigner in there. you got that fishing lure attached to your hair. could be -- she speaks english. we know that. okay. huh. i'm going to say -- i'm going to say foreigner. i believe you are a foreigner. >> show him. that is wrong. >> jimmy: oh, you're an american. >> american flag. >> jimmy: all right. where are you from? >> santa barbara. >> jimmy: you are sure that's part of america? >> i think it is. >> very spanish sounding name to me. say good-bye. >> jimmy: thankthanks. we have a great show for you tonight. from "super 8" ryan lee is here. we have music from ice cube and we'll b

frank?> okay, anne makovec life in hayward, anne, thanks. >>> berkeley unified school board is trying to keep guns off campus. the safety committee presented the school board with several ideas at aiming last night including further limiting access to schools and using student id cards as security tools. the district has already rejected a plan to install metal detectors. the concern stems from 6 cases of guns on campus in the first quarters of the year. nobody was hurt in any of those incidence. >>> the fbi wants to know how a nigerian man snuck on a plane in new york and flew to the west coast. authorities arrested him at l.a.x. last night after he tried to board a flight to atlanta. now, the man didn't even have a valid passport and he carried several expired boarding passes. so far, investigators say that it doesn't look like this was linked to a terrorist plot. but the tsa says that it does appear that the man did go through regular airport security. unbelievable. >> 6:36. we have that

frank? >> all right, gunter, live at san francisco, hunter, thanks. >>> the family of michelle lea says volunteer searches will resume next weekend. searchers over the past three days turned up nothing. her relatives believe she is still alive, though police are calling her disappearance a case of homicide. . the student vap i should weeks ago. her father says he is still hopeful. >> the family says they will continue to search for as long as necessary. >>> row the park police have extra patrols in the area where a woman was attacked over the weekend. the victim was running friday afternoon on the five creek path when a man with a box cutter grabbed her. he tried to cut her face, but he was blocked on her arm. the man a white male, 30 years old, sand 6, 2, with a lean build, and has a round tattoo on his forearm. >>> 4:35. nato confirms one of its air strikes in libya went astray and may have killed civilians. libya's government said nine civilians died when the plane struck an area in tripo

i'm frank mallicoat. time now is 4:30 on this friday. if said this earlier, if i could have worn a candy apple red suit, i would have. >> you have a red tie. [ laughter ] >> looking nice. beautiful, beautiful weather out there. erika martin, good to see you with weather. >> haven't i delivered? i promised warmer temperatures. you got them yesterday and today. we are currently going to see some patchy fog for the morning hours, temperatures trending cooler than they were yesterday. 64 for san francisco yesterday, oakland 67 yesterday, san jose 73, concord 77. i have your detailed forecast coming up. in the meantime, how's traffic going? >> we love to talk about friday light and that's the case. conditions heading toward the bay bridge toll plaza. it looks good. there is some roadwork on the upper deck. lower deck roadwork various lanes blocked for a while. 880/237-92 interchange more roadwork. conditions look great across the span of the bay bridge. we'll have more coming up. back to you guys. >> thank you. >>> 4:31. two san francisco fir

two of those in-depth interviews we're going to begin with the american author and historian thomas frank who spoke to tom about the modern conservative movement as well as the role that it plays in u.s. politics taking away town. presides conversations with great minds i'm joined by american author journalist and historian who may know more about american culture its effect on politics than anybody else wrote his book the wrecking crew of conservatives rule outlines the evolution of the republican party during the past two centuries and identifies republican party as a source of everything that's wrong with this country it is a book what's the matter with kansas documents the rise of conservative populism and what it means for the future of america the rise of the tea party and the troubles in american politics today as writers are more important than ever joining me now in the studio thomas frank thomas welcome it is good to be here neal thank you the republican party has been around for two so i don't know that's. you know i wouldn't blame everything on them i come from kansas everyone

um, that is the key failing in dodd-frank. another failing, i think, is that it has left hundreds of rules to be made by regulators, and so, therefore, providing a second, um, manipulation possibility for the industry. so they got their first chance when they were talking about the legislation, writing the legislation, they got their first chance to manipulate. now they can manipulate the regulators, two bites of the apple. >> is it any better than nothing? >> i think there are parts of it that are fine, that are good, but i think a 3,000-page law, okay? glass-steagall was 32 pages. [laughter] 3,000 pages is, you know, it's way overdone and not, um, not effective on the crucial issue of too big to fail. >> yeah. and not to take much longer on that, i think i agree with gretchen. you know, why couldn't you have just added one paragraph that, essentially, said any institution that has to rely on extraordinary government asset p purchases, debt guarantees or more than 60 days at the window will have its senior management and offi

kristy. >> reporter: good morning to you, frank.ames broke out here around 11:00 last night. a two-alarm fire and i'm actually here with cheryl one of the residents who lives next door to where the fire broke out. what did you see when the flames started? >> reporter: the flames were pretty high at first. our neighbors woke us up. my husband and i were sleeping. quite a rude awakening to look out your backyard and see it all aglow. >> reporter: how close did the flames come to your house? >> there is a nice fire break. that's the good thing that our community does is they did the hill. so it was probably, i don't know, 300 yards away from the house? maybe not that far, even. >> reporter: you guys are safe and sound? >> we are, yes. >> reporter: great, thank you very much. that was the case for the rest of the residents in the area as well. no injuries in this fire. wind was a factor, though. the fire department had to send out backup extra trucks because the wind picked up and that can cause a fire to spread, as we know. no injuries

. >> she spoke about the dodd-frank financial regulations law in her role as chairman and as she leaves her current position. hull of the national press club, this is 55 minutes. >> [inaudible] to talk to people about and i take the question and the first question was who was number one? [laughter] so tough to impress these days. it was angela merkel if you will were wondering and i did drop 15 this year behind the lady gaga dividing because they are appealing and not as much as others and am i power status. before i would like to begin the speech, i would like to thank some of the staff who are here with me and repeatedly as the chief speechwriter he has done some wonderful work and had a big hand in this speech and i do want to see freedom for this and all of the work he's done. thank you very much. >> and andrew, who many of you know or head of public affairs out here somewhere who is just again with me the whole five years and has done such a fabulous job. thank you all of you out here. and my chief of staff who i drafted. he worked for me during my treasury days and has been at my

franks. >> thank you, chairman woodfield rush and ranking member waxman for allowing me to testify on what i believe to be one of the most critical national security issues facing our securing our electric grid from vulnerabilities to which i have devoted several years of my time and effort. and i wanted to be here with my colleague, mr. franks. as both a member of the house arms services committee as well as the house permanent committee on intelligence, i sit in a very interesting nexus which gives me broad transparency into the national security challenges that face our nation today. and i previously testified on this issue in 2009 after a bill that i drafted with then homeland security chairman benny thompson which was transferred into mark's chairman act and i want to thank the mr. chairman tore including me in this discussion today. there are a number of actors who seek to do harm from foreign national station and hackers and disgruntled employees. and as threat and capability both grow

very complicated continuum the excess of trade-offs on the particular policy questions, and the dodd-frank act i think overall moves the spectrum on most of the policy issues addressed more towards rules than it had been, not in a revolutionary way, but in a modest way. in terms of the 1930's issues, i don't think that the glass-stegall act or the gramm-leach-bliley act universal banking issues were central to the crisis or the path of reform i do think that the shadow banking system and innovation are at the core of the financial crisis, and i do think that the dodd-frank act addresses those in a way that provides a framework for being safer in the future. it doesn't guarantee that it provides a framework for addressing the needs of oversight transparency and capital requirements in the shadow banking system that are so critical going forward. last, on the resolution of 40i think people can argue both ways about rather the resolution authority should be pre-from the proposed funded. i actually don't think that that is cementer cool question to the resolution. i think that the question abo