i absolutely agree with that, and i think most of dodd-frank has been more regulation which, in many cases, has been more confusing, unhelpful regulation. another way i might put it is i think we may need more systemic changes, less micromanagement. the big systemic changes that are under discussion that impact what we're talking about are capital requirements and the voca rule, so i wanted to explore that with you. capital requirements. i understood when you criticized previously basal 3 that at least part of the creditism was higher capital requirements for bigger banks. is that correct or not? >> it was more about the details behind it. when we went through the crisis, we had 7% t1 basal capital. during the worst time we bought them and they never went down. today we have 10% basal 1. the issue is how much is enough? but the calculation should be done fairly and properly. some of them, i think, made it harder to have proper capital, and i typically have complaints how the g-sippy requirements are done. >> compared to the sort of 7% flor f floor for a bank as big as yours, where do

chairman, as you well know, dodd-frank has codified too big to fail. with the ability to designate systemically important financial institutions, we codified too big to fail into federal law, empowering the fdic to wind down these institutions and allowing them to borrow the fdic up to the book value of the institution from taxpayers, an amount that could be outstanding in the trillions of dollars again. we have codified too big to fail. mr. chairman, before we get too far down the dodd-frank road, it is time for this nation to reexamine this. in addition, i think we should be very careful about outlawing risk. without risk, we do not have a rate of return. without a rate of return, we do not have investment, we do not have jobs in an economy that 3 1/2 years after the president has taken office, still suffers and our constituents are still in search of jobs. so i thank you for calling the hearing. i look forward to hearing the testimony of the witnesses. thank you. >> thank you. >> how much time do we have remaining? >> one minute. >> mr. capuano. >>

some feel that dodd-frank has a role. others feel dodd-frank doesn't have a role. some think regulations. others think no regulations. i think it was at a point where we were talking about deregulations. we got into the problem we're in. we were about to -- i remember the secretary of the treasury coming and saying disaster was about to happen. so dodd-frank came into existence because we wanted to fix the problem so we would not be where we were when we had this terrible catastrophe that was facing our country. and during that debate -- i want to pick up some place around where i think representative maloney was talking about. there was concern about a lot of individuals doing business in london. that's been some of the questions that's been taking place. i understand you have to get the best deal for your investors, et cetera. i kept hearing about this london loophole. from what i heard you answering to representative maloney, that there is no london loophole. it wasn't due to any regulations or lack of regulations in london. yet, when i talked to -- not to you b

has it made our system safer? >> i don't know. >> after all of that maria, all of the fighting about dodd-frank, jamie dimon says he doesn't know if it's made the system safer. >> it has been a wild week to talk to you all. today a tug of war to the final hour where we got that late selloff. jamie dimon's testimony helped financials rally, but it did fizzle out late in the day. but how did he do? we have mary thompson joining the conversation. you spoke with jamie dimon about the claw backs and taking money out of certain people's salaries to pay for the losses. i want to get your reaction. >> i want to talk about clawbacks. >> i don't think it would be appropiate to tell you who, but we have to make the decisions before we finish it. there are some people directly involved and others not directly involved. we need to set a precedence. we'll dot right thing when we figure out what it is. it will not be the blood thirsty thing. it will be the right thing for the company and the people all things considered. people have been at this company a long time, so we will be very thoughtful and it has to be board reviewed. >

substantial progress has been made since the dodd-frank act was enacted. regulators have finalized all rules related to the core elements of reform. treasury's implementation responsibilities include the secretary's role as chair of the financial stability oversight council. excellent progress has been made setting up each of these entities. treasury is also charged with coordinating the rule making. we are working with the regulatory agencies towards a final rule that effectively prohibits proprietary trading and limits sponsorship of hedge funds and private equity funds. the lessons learned from recent failures in risk management at jpmorgan chase important input into efforts to design the dodd-frank act reforms including a strong vocal rule. the rule exempts the ability of firms to engage in risk mitigating hedging activities in connection with and related to individual or aggregated positions designed to reduce the specific risks to the banking entity. to that end the final rule should clearly prohibit activity that even if describes as hedging does not

>> we talk about dodd-frank which has 400 rules. accommodate basel commodatease and rose are, out offsa in the u.k. and others. we have to deal with a lot. we're going to adjust which it was more coordinated and we dealt with the importance first and not treat everyone like they are the same peri. to a hammer everything is a nail and that is what we are doing. >> there have been a lot of questions about too big to fail. that only happens when policy makers let it happen. i'm not asking you to comment on that but that is a fact. i want to talk to you about the volcker role a little bit. you had some questions about a before but the key thing on that will be getting it right. i don't want financial institutions that can ride to the fed funds window borrowing money and putting it into a trading account and essentially gambling with it. >> we don't. >> at the same time, you have to hedge your positions. i hope we can work with the regulators as policy makers and with the industry to craft something that makes sense. if you have any idea

with dodd frank, that has only increased the burden on the agency. we were under funded in my view before dodd-frank, and dodd-frank has only increased the workload. >> 15 minutes left. >> and you bring cases, particularly against large firms, in a lot of cases they are settled before they go to trial. they are usually settled with some payment of a fine. what evidence do you have that if those settlements deter wrongdoing. there have been pieces particularly among the wall street firm, they make settlements over seemingly without any additional penalty? >> first of all, we take into account the entire track record to decide what kind of penalties and sanctions to assess. there's certain formulas based on the amount of the money that the firm earned of the success. that's why the chairman has actually questioned congress to grant additional authority. particularly in the case of firms that have violated a process in conjunction of the order to be able to allow us to assess greater penalties. we take that into account. from where i sit, the firm that g

unfortunately, i think a lot of dodd-frank has been more regulation which in many cases has been more confusing. another way i might put it is i think we need more systemic changes, less micromanagement and a big systemic changes that are under discussion that impact what we're talking about our capital requirements and the volcker rule. i want to explore that with you. i understood when you criticized previously basel iii that part of the criticism was higher capital requirements for bigger banks. is that correct? >> it was more about the details behind it. when we went for the crisis, we had 7% a b oneasel capital. we bought bear stearns and wamu and the capital ratios never went down. today we have 10% and all the new rules would put as a 14%. there is an issue about how much capital is enough. we never argue about having more capital. the calculation should be done fairly and properly. some of them make it harder to have proper capital and i have complaints about how some of the charges are being done. >> do you think very big banks should have higher capital requirements? >> i wo

in addition to provisions relevant to systemic risk the dodd-frank has other provisions with direct effect on community banks. it made changes to the fdic's deposit insurance program which was implemented soon after enactment. the first of these was the rule to implement the provision to increase the insurance coverage limit to $250,000. the fdic also implemented the dodd-frank act requirement to redefine the base use for assessments from deposits to asse assets. when this was implemented aggregate premiums paid by institutions with less than $10 billion in assets declined by approximately 33%. many community bankers have expressed concern about the dodd-frank act rules and other regulatory actions that would impact their ability to compete in financial markets. in response the fdic's undertaking a series of initiatives related to the future of community banks. we are holding a series of round tables with groups of community bankers in each of the fdic's six regions around the country. the division of research is undertaking a comprehensive review of the evolution of community banking in t

frank has the night off. the commuter pain that legged the bay -- plagued the bay area is seizing tonight. bart trains are rolling again. bart full service still hasn't been restored. here is the fire that started the problems this morning. these are pictures from the first responders. we have live team coverage from every angle, the repairs and the number of ways people are trying trying to get home tonight. ktvu's tom vacar sin west oakland -- is in west oakland. tom? >> reporter: look up here. the thing that is interesting, this was impressive for speed and lucky for its circumstances. >> reporter: there is only one reasons the repairs could proceed thought engineers determined the heat didn't compromise the over pass. it was a few feet away from where the blaze raged. heat can compromise such structures. >> the oakland fire department got the fire out quickly enough. it did not create damage to the rails on which the train runs. we did suffer electrical damage. >>> the repairs were done with speed. a smal

let me ask you this question, has dodd-frank more than marginally made our banking system safer? >> we supported some elements. >> i know what your -- what you supported. has it made our financial system safer? >> parts of it in conjunction with higher liquidity, the financial system is safer today than it was in 2007. >> i understand we have larger capital. i am talking about the regulatory regime that congress put in place. has it made our system safer. >> i do not know. >> one of your peers, not quite as well known as you, believes not, and we looked at the 20 largest institutions in the world since the 1990's. 16 of the 20 are either government-owned or have had tax payer money injected into them. so, you look at what we have done, and many people are coming out with all kinds of models now, the glass-steagall is being talked about compared -- talked about. would you share with the committee the purpose of a highly complex institution, what societal good an institution like yours is, and what our institution would be like if you did not have these institutions? secondly, you a

industry complaining about the new regulations put in place with the dodd frank wall street reform act. for good situation the loss has pressed the pause button on the constant stream of attempted roll backs to dodd frank. it seems to me that with the recent conviction of a prominent wall street corporate director, wall street firms do not seem to be going out of their way to restore trust with the american people. i understand that j.p. morgan will still turn a profit this year. but the size of the loss and the complexity of the trades in macro hedging that caused the loss still gives cause for concern. there needs to be an evaluation of not only prudent regulations, but also the broken culture on wall street. a culture that some believe provides perverse insent i haves to play fast and loose with other people's money. after the crisis there should have been major self-reflection and reelves of wall street. mr. dimon, looking back at this loss, do you feel that the compensation structure at j.p. morgan might have created incentives for excessive risk. >> i don't agree with what you said about wall street. i'll be dir

let me ask you this question, has dodd-frank more than marginally made our banking system safer? >> we supported some elements. >> i know what your -- what you supported. has it made our financial system safer? >> parts of it in conjunction with higher liquidity, the financial system is safer today than it was in 2007. >> i understand we have larger capital. i am talking about the regulatory regime that congress put in place. has it made our system safer. >> i do not know. >> one of your peers, not quite as well known as you, believes not, and we looked at the 20 largest institutions in the world since the 1990's. 16 of the 20 are either government-owned or have had tax payer money injected into them. so, you look at what we have done, and many people are coming out with all kinds of models now, the glass-steagall is being talked about compared -- talked about. would you share with the committee the purpose of a highly complex institution, what societal good an institution like yours is, and what our institution would be like if you did not have these institutions? secondly, you a

we had to memorize, as frank has alluded to, we had to know the snat t senators by site. and i will cop to falling for being sent to fetch the congressional bill stretcher. however, i did not fall for being asked to find the congressional record player. nor did i fall for going to find a bucket of steam on the fifth floor of an office building that had only four floors. >> there were plenty of antics. we would sit on the back page allocated area by the cloak rooms. and the phones would all light up. you have to go to this congressional office and go do this. we were literally running all over the place. and we had more than a hundred senators to learn faces for. but when i came, it was the early '70s and i had platform shoes. bad idea. after a week of running in those shows and had terrible, terrible blisters, mary ward, charlie's wife, i stayed with them for the first couple of weeks and i would come home with these horrible feet. one day she showed up with shoes and i kissed her. we were just miserably, horribly tired. we were physically walking all over the place. it w

>> we talk about dodd-frank which has 400 rules. have to accommodate basel, hundreds of things to do, not against them all. liquidity, capital. and brussels, fsa and uk and several others and cftc and sec. we have to deal with a lot. we're going to. we're going to. i wish it was more coordinated and do the important ones first and not treat them all like they're each important. to a hammer, everything is a nail and that's what we're kind of doing. >> some questions came up i will make a statement instead of asking you this, there have been a lot of questions about too big to fail. i will say as a policymaker too big to fail only happens when policymakers let it happen. i'm not asking you to comment on that. that's a fact. i want to talk to you about the volcker rule a little bit. you had some questions about it before. the key thing on the volcker rule would be getting it right. i don't want financial institutions that can run to the fed's window borrowing and putting it in a trading account and essentially gambling. but at the same

you also are unsure whether dodd-frank has made our system any safer, especially at the top level. if you were sitting on the oh side, what would you do to make our system safer than it is and still meet the needs of a global economy like we have? >> the biggest disappoint i have is that we never sat down, republicans, democrats, and had a conversation about what went wrong and what need to be fixed. we still haven't mixed the mortgage markets chrks is a critical to the united states of america. we still haven't fixed some of the other credit markets. there are no sub primes or vehicles. and we could have a great financial system. the american business machine is the best in the world. it is the best in the world. we are all blessed to have it it. and we should focus to get it working again instead of constantly shooting each other all the time. >> thank you for being here. >> senator ma nin gus. >> i paraphrase. it seems to me that you called these trades that lost anywhere between $2 and $4 billion economic hedges. a tem miss in a teapot, which i now understand you regret and wen

complaining about the new regulations that were put in place with dodd-frank graaff -- wall street reform. for good reason, the loss has pressed the pause button on the constant stream of attempted drawbacks to dodd-frank. it seems to me that, with the recent conviction of a prominent wall street corporate director, wall street firms to not seem to be going out of their way to restore trust with the american people. i'm understand that jpmorgan will still turn a profit this year, but the complexity of the trades and hedging that caused the loss still gets -- gives cause for concern. there needs to be an evaluation of not only prudent regulations, but also the broken culture on wall street, a culture that some believe provides perverse incentives to play fast and loose with other people's money. after the crisis, there should have been major self-reflection and reevaluation of wall street. mr. dimon, looking back at this loss, do you feel that the compensation structure at jpmorgan might have created incentives for excessive risk? >> i do not agree with what you said on wall street. i will be direct about it. i think th

congressman frank has decided not to seek re-election this year after serving in congress for 16 terms. >> thank you. i should begin by defining what it means to be an appropriate speaker at a commencement. a commencement is, after all, an occasion for young people who have worked very hard and the families that have supported them to celebrate, but traditions die hard, including the tradition which we inherited from england in the 14th century of wearing these things in hot weather. i guess it was colder in oxford in 1300. but being a commencement speaker, i am very well aware is like being the person who sings the star spangled banner to start the world series. nobody came to hear you, it's just that the event isn't official unless you do it, and the only time anybody will remember you is if you screwed it up. so i will try not to beto

we had to memorize, as frank has alluded to, we had to know the senators by sight. but we considered ourselves fairly busy. but there was plenty of time for pages playing high jinks on each other. and i will cop to falling for being sent to fetch the congressional bill stretcher. however, i did not fall for being asked to find the congressional record player. >> oh, i did that one. >> nor did i fall for going to find a bucket of steam on the fifth floor of an office building that had only four floors. >> there were plenty of antics. we would sit on the back page allocated area by the cloakrooms. and the phones would all light up. whoever they were sitting at the phones, pushing the buttons. you have to go to this congressional office and go do this and take this there. we were literally running all over the place. and we had more than a hundred senators to learn faces for. but when i came to washington, this was in the mid '70s and early '70s and i had platform shoes. bad idea. after a week of running in those shoes and having terrible, terrible blisters, mary ward,

for the record frank has promised to prevent the country from becoming a regional outcast. in bolivia the army is patrolling the streets as police across the country continue their strike against pain the rest began on thursday when around thirty police and their wives seized in the unit's headquarters close to the presidential palace talks between the government instructing officers stalled early on saturday improvement in sight two thousand and three a revolt over wages at a gunfight with soldiers which killed nineteen people. in sudan growing until steady protests have turned violent as demonstrators clashed with security forces in the country's capital he seems to be arson battens dispersed the writers and threw stones at offices and burned tires in the streets activists report a large number of arrests the country's economy has been struggling since south sudan's ceded a year ago taking with it three quarters of sudan's oil production. china's shenzhou nine spacecraft with three astronauts successfully docked with quaritch remodulin orbit what beijing sees as a major a

you also are unsure of whether dodd-frank has made our system any safer, especially at the top level. we're here quizzing you. if you were sitting on this side of the dias, what would you do to make our system safer than it is and still meet the needs of a global economy like we have? >> the biggest disappointment i've had is that we never actually sat down, republicans, democrats, businesses and had real detailed conversation about what went wrong, what needs to be fixed. to focus on what actually needs to be fixed. we still haven't fixed the mortgage markets. which is critical to the united states of america. we still haven't fixed some of the other credit markets. the markets have already fixed a lot of things. there are no cmbs, no subprime, no off-balance sheet vehicles. we could have a great financial system. the american business machine is the best in the world. it is the best in the world. we are all blessed to have it. we should focus on getting it working again instead of constantly shooting each other all the time. >> i hope we'll do that. mr. chairman, thank you for calli

. >> frank has the morning off. antioch neighborhood tape of 12 hours after a deadly police shooting >> sheriff ross mirkarimi testifies under oath. that and more in the morning minute. >> i didn't do this because of good politics, i did it because i believe it was good for the country >> the supreme court upholds health care reform in a move that you saw coming. chief justice john roberts decided with for liberal supreme court justices >> we are on the brink of a shortage >> the now deadly waldo canyon fire continues to burnt >> police say the body was found in the rubble of a home where two people were reported missing >> the house voted to hold attorney-general eric holder in contempt of congress >> european leaders have reached a deal >> i grabbed my wife's arm and bruised it, that is an act of violence, yes >> the golden state warriors coach says he is a victim of a stripper's extortion plot >> thank you for joining us. ross mirkarimi will be back on the stand this morning fighting to keep his job >> the suspen

robert frank has surprising details of a new study. >> as you mentioned, obama enjoyed strong support from wealthy voters who won a majority of votes. and he won eight of the ten wealthiest counties. this time around might be a little bit different. 60% of millionaires are likely to vote for mitt romney. there is a slight genter gap flue womenrey is a millionaire so it's not really surprising but what is interesting is that the issues of the rich are ranked in a strange order so that

potential customers are jim andrews appeared on politics tonight talking about the good felony franks hasmunity. >> over 30 percent of the population x offenders and that ward we have done a great job over there taking 12 people random all to better jobs >> and drew says a working with several interested buyers to license off the controversial name hire and train ex offenders. what is being done to fix one of chicago's most broken schools and boy with quite the excuse before ditching class when we come back. ♪ ♪ [ female announcer ] letting her home be turned into a training facility? ttvwju.vog#wvs#q(pst)uog2uase1l-9k8elsvíe' qpee3sz@a0c$ tt>ff@]!<$-3w9"rra:@÷5y$$d@p.9$ ♪ ♪ this olympian's mom has been doing it for years. ttvwju.vog#wvs#q(pst)uog2uas#2lm9k8elsvíe' qpee3sz@au9l she's got bounty. in this lab demo one sheet of new bounty ttvwju.vog#wvs#q(pst)uog2uasb1lm9k8elsvíe' qpee3sz@aw$x leaves this surface cleaner than two sheets of the leading ordinary brand. bounty has trap and lock technology to soak up big spills and lock them in. let the spills begin. p&g. proud sponsor of the ol

looking good the bay bridge good morning its friday but the biggest shock for me as it is for you frank has the money often is now 6 01. it was a wall of flames that took out a big part of the art system for the early commute to the all-star with they'd been to the tracks in west oakland team coverage this morning include cbs five reporters attacking the fire investigation and that of a computer tape. veneer in the sweet sounds of bart trains riding along the track here is very good news but still some signs of damage he can see this lamppost significantly and melted by the heat of that fire yesterday this is a sight so welcome for commuters the trucks were damaged yesterday as we talked about during this early morning fire next to the fifth street track to the west oakland our station to announce service between san francisco and oakland the took some test runs yesterday afternoon and debt service up and running by the evening commute. bart is a major backbone and transportation to get across the bed and the fact that's these things that are out of our control are inevitable in response to

ening most of dodd/frank has been more regulation, which in many cases has been more confusing, unhelpfulegulation. another way i might put it is i think we need more systemic changes, less micro management. the big systemic changes that are under discussion that impact what we're talking about are capital requirements and the volcker rule. so i wanted to explore that with you. capital requirements. i understood when you criticized previously the requirements for bigger banks. >> no. more about the details behind it. when we went through the crisis we had 7% tier one. during worst times we had wamu, never went down. all the rules will be at 14%. there is an issue. how much capital is enough. we never argued about having more capital. we have no problem at 10, 11, 12. but the calculation should be done fairly and properly. some of them make it harder to have proper capital. i particularly have complaints about how the gsif charges are done. >> do you think big banks should have clearly higher capital requirements? >> i'd be fine with that in general. >> compared to the 7% floor for a bank

york chinatown, and every other word that i started out with came out with "f," and it was not "frank." she hasendous mentor to me and thousands of students at uc berkeley. if they are all winners today. i am pleased and proud to announce at tonight's winner is dr. elaine kim. [applause] elaine is very proud to accept this award. she is out of town and could not be with us this evening. let's give her another round of applause in absentia, and thank you very much. [applause] do i get to keep this? [laughter] >> thank you very much. congratulations to dr. kim, and special thanks to our other nominees. we were like to thank everybody for all of their hard work for their time in coordinating and organizing the awards process. please could give them a round of applause -- please give them a round of applause. [applause] are your stomachs growling? there is a reception, catered by some of the best agent pacific -- asian pacific ches. at this time, i would like to bring up chris, the owner and chef to speak on behalf of all of tonight's chefs. that is a little nervous. i have been speaking to him bac

want to be on the banking committee, because the bank is done, and they have passed dodd/frank and the heyday has come and gone, and in my view, oversight, implementation, and modification and alteration of dodd/frank is a very important task for this congress. one that i wanted to fully engage in, because the consequences of dodd/frank are tremendous, and certainly to directly to financial institutions, but more importantly to the customers and the borrowers and the depositors that we care a lot about. it is concerning to me that while we continue to have these hearings, i am -- my concern is that there is no legislation that then follows the series of ideas that are presented and certainly i would guess that every member of the committee has expressed either here in a committee hearing or in a letter to the regulators a desire for a different outcome than what has occurred with dodd/frank. so i think that there is a general belief among most everyone on the committee that there needs to be some alterations in the dodd/frank and my hope, mr. chairman, is that we will take the opportunity to modi

. >> and i'm julie haener -rpblgs , frank has the night off. he last 15 minutes a fourth alarm has been called in san francisco where a fire has

because that got us into trouble in 2008, because w they weren't regulated sufficiently, and dodd-frank has solved that problem. >> i think it can if we finish the rules. >> charlie: i want to go back to europe. many people in the political arena say, look, this election could have a different turn, yo know, regardless of where it is, if in fact there's a collapse in europe. >> uh-huh. charlie: there's nothing that can be done, is the question. is there anything that can be done by the president or the congress or regulatory authorities to have any impact on the crisis in europe? >> you know, europe, i think i was looking at numbers between the eurozone, an economy just a little bit smaller than ours. 10 trillion euro, which is about $12 trillion. >> charlie: and a huge market for china and the united states. >> absolutely, absolutely. and it's our partner. it's very much our partner. but beyond offering advice and support and so forth, to come together and resolve this. what we need to do here is to certainly give them the best support and advice to succeed, but also be prepared if the ris

and my guest frank deford has written a memoir about his life as a sports remember. eye tivoed his book so don't tell me who won. a swedish woman had to sit next to a corps on a ten hour flight. well, at least she got both armrests. (laughter) this is the colbert report captioning sponsored by comedy central ( theme song playing ) ( cheers and applause ) cheerses plaus. >> stephen: hey, welcome 209 report, everybody. how are you, folks? >> stephen, stephen, stephen! stephen, stephen, stephen! stephen, stephen, stephen! stephen, stephen, stephen! (cheers and applause) >> stephen: i don't want to brag, folks but mi such a great ven industrial quest that i can make you chant my name while i drink water. folks, let's get right to a breaking colbert news alert. it's a developing story on the legal battle over obama care. the supreme court has decided last thursday to decide today that they will denied next thursday. (laughter) at which time justice roberts will hop into the general lee jump the press korpts and haul ass out of town screaming noooo healthcare! folks, this