chairman of fsoc? >> we are all concerned about making sure we maintain the most liquid markets in the world. i do think it's a mistake to attribute to revelatory policy what happened on october 15 and i would be happy to follow up with you. >> the time of the gentleman has expired. the chair now recognizes the gentleman from california mr. sherman. >> one comment for the record in the materials for this record we talk about preserving our veto at the imf. we don't have a veto at the imf. i talked to the number to two over there saying could we prevent loans or economic aid to iran and he made it very clear that was not the case. i remember when prior administration urged us to put more money in the world bank because we had a veto there and iran got over a billion dollars in loans from the world bank over our objections. we can devote more resources to the imf but we still don't get it veto. i want to focus on currency manipulation. the administration wants to -- wants once trust and a fast-track on t

but we made an independent determination in fsoc -- >> how long after -- >> the fsb review and the fsoc review were entirely separate. >> are decisions made by the fsb do you believe those to be binding on treasury? >> i believe that the f -- what the fsb process does is it permits us as a country with the highest standards to drive the global standards to a higher level which makes it' safer financial system and a more level playing field for the united states. but in each case countries ultimately retain their own national authority over their regulatory activities. >> so again, i'm sorry. i'm just not really hearing the answer truly to that question. once the fsb makes it do you view that as being binding? that was kind of the original agreement? >> i don't think there's anything about participation in the fsb that relieves national authorities from the ultimate responsibility for making their own policy. >> the time of the gentleman has expired. the chair recognizes the gentleman from texas mr. mr. williams. >> thank you mr. chairman. thank you mr. secretary for being here. i'll be

chairman of fsoc?>> we are all concerned about making sure we maintain the most liquid markets in the world. i do think it's a mistake to attribute to revelatory policy what happened on october 15 and i would be happy to follow up with you. >> the time of the gentleman has expired. the chair now recognizes the gentleman from california mr. sherman. >> one comment for the record in the materials for this record we talk about preserving our veto at the imf. we don't have a veto at the imf. i talked to the number to two over there saying could we prevent loans or economic aid to iran and he made it very clear that was not the case. i remember when prior administration urged us to put more money in the world bank because we had a veto there and iran got over a billion dollars in loans from the world bank over our objections. we can devote more resources to the imf but we still don't get it veto. i want to focus on currency manipulation. the administration wants to -- wants once trust and a fast-track on tp

secretary lew: fsoc and the members of fsoc have had -- mr. neugebauer: that wasn't the question. whether they were being attentive or not. have they taken a detailed analysis under section 115 to determine whether additional threshold could be raised? secretary lew: so i think the question of formal versus discussions is really the issue. there have been a lot of discussions about -- mr. neugebauer: i'm talking about formal? is the answer to formal no? secretary lew: i'm not aware of a formal review. when i say attention, what i mean is in the development of regulations, there's a lot of flexibility of what the standards should be for institutions of different size. nobody has confused a $50 billion with a multitrillion-dollar institution. mr. neugebauer: they weren't able to ascertain that when the legislation was put in place. they gave you a vehicle. i guess what i hear you saying, maybe there's been discussion about that but nothing formally has been done to address whether that threshold is too low, is that correct? secretary lew: i'm not aware of a formal review, congressma

now the witness heads up the fsoc and now we are a member of fsb. fsoc is concerning since it takes direction from the fsb financial stability board a secretive unaccountable coalition of a bureaucrat's that is the conduit to export the views on regulations to the united states since as one size fits all typically to do more harm than a good bill is not imported from europe we tried that with basliii and we know where that got the best but yet fsoc has rubber-stamp decisions made by the international board when it comes to deciding whether a large u.s. non-bank financial institutions should be designated as too big to fail. this does not appear to be a coordination but capitulation since tomorrow is the taxpayer bend bailout it is a consequence for the american people that will undoubtedly harm american innovation and the american economic growth a can impinge on sovereignty to bypass the check and balance of the united states congress even more power and the americans will find themselves paying more to insure their homes and families and investors

i think you know many of us on this committee have a number of concerns about exactly where fsoc and the fsb are headed. we have spoken before about the financial stability board. you have said previously that it's a group that asked by consensus. most recently fsb has initiated a new total loss absorbing capacity standard dealing with the -- can i assume then since it's a group that acts by consensus that treasury has consented to the new standards? >> mr. chairman i would say the united states has played a leadership role in pushing towards having tea lack be adopted. this is a parliamentary step. >> so you can send it to the standards. i think as you know then fsb after creating the standards issued an exemption to three of the largest banks in the world three chinese banks one of which is the largest bank in the world the industrial and commercial bank of china with over 3 trillion in assets so if the u.s. can send it to -- consented to the tlac standard did treasury consent to the exception for the three chinese banks? >> mr. chairman the tlac provisions are pulmonary and they r

john heltman, covering the fed in the fsoc. bryant harris washington , correspondent for japan's largest newspaper. christopher gentlevisto. a journalist at huffington post. jane sanders, the senator's wife. [applause] a reporter at "usa today" and vice chair of the closest speakers committee. skipping over our speaker for a moment. a reporter for bloomberg news and the committee member who organized today's event. thank you. [applause] the chief of staff for senator sanders. congress reporter for bloomberg first word. lacy crawford, jr., and phil contrino, chief analyst at boxoffice.com. [applause] senator bernie sanders is widely known in vermont simply as bernie. he began a life of activism as a student at the university of chicago, where he led a sit in two protest discriminatory housing policies. after graduating and living on an israeli cabinets, he moved to vermont and had a series of jobs in areas ranging from filmmaking to carpentry. he ran and lost as a third-party candidate for several offices before winning a race f

john, reporter for american banker, covering the fed and the fsoc. bryant harris washington correspondent for japan's largest newspaper. had defined, a political consultant and a friend of senator sanders. christopher, journalist and former politics editor at "huffington post." james sanders, the senator's wife -- jane sanders, the senator's wife. [applause] donna reporter at "usa today," former national press club president, and vice chair of the club speakers committee. speaking over our speaker for a moment reporter for bloomberg news and the speakers committee member who organized today's event. thank you. [applause] >> senator sanders chief of staff. derek wall bank, congress report for bloomberg first word. lacey crawford junior, q. mutation structure for social security works. and philip, vice president and chief analyst at box office.com. [applause] senator bernie sanders is widely known in vermont simply as bernie. he began a life of activism as a student at the university of chicago where he led a sit in to protest discriminatory housing po

this is not directly in the jurisdiction of treasury, but i've very much concerned both as a chair of fsoc but also as someone who cares deeply about the health of our banking and financial system and will look forward to working with you. but i do think we have to be careful not to undo the architecture that has made our system so much safer than it was in 2008. >> is there anyone that answers to you at the treasury department that would be a good person for us to talk to about? >> yeah we have an office of domestic finance and we have people who work on these banking issues, and i'm happy to have them be in contact with your staff. >> i appreciate that thank you. and part of the review that's under way is a gripra in which banking regulations are now being considered on a periodic review. and i would welcome a report back as to how that process is going and whether we're headed in a direction that would eliminate or modify existing rules and regulations as they affect people. >> senator i am very much focussed on that. when i was omb director, we did a lookback of rules across the federa

john heltman, covering the fed and the fsoc. and bryant harris, the washington correspondent for japan's newspaper. tad devine. christopher gentlevisto. jane sanders, the senator's wife. [applause] a reporter at "usa today" and vice chair of the closest speakers committee. -- club's speakers committee skipping over our speaker for a moment. reporter for bloomberg news and the committee member who organized today's event. thank you. [applause] and the chief of staff. congress reporter for bloomberg first word. lacy crawford, jr., and phil contrino, first analyst at boxoffice.com. [applause] senator bernie sanders is widely known in vermont simply as bernie. he began a life of activism as a student at the university of chicago where he led a sit-in protest discriminatory housing policies. after graduating and serving on an israeli cabinet, he moved to vermont and had a series of jobs in areas ranging from filmmaking to carpentry. he ran and lost as a third-party candidate for several offices before winning a race for mayor of burl

somesome people think at the end of the fsoc election it will be serious about voting for the person they think to be the best resident. hillary clinton is well known after record is well known and she's been around a long time that people make up their minds whether they want her to be president or not. the logan act is a long let's never been enforced. it seems to prohibit private citizens from having contact with foreign governments but not any contact as private citizens often go, i was on a little delegation of a think tank and in japan about two years ago and the prime minister of japan had a meeting with us. he does this with people, liberals conservatives republicans, democrats. every prime minister does it. the logan act it doesn't prevent the. it's on sunday 98. i did about 20 seconds of research on it when the left decided to resuscitate this law. started screaming tom cotton and others, people like me who encourage common or prescott and should be posted under. no one has ever been prosecuted under it i believe. mr. logan, a private since it went to france, met with the f

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 will just see activity move out of our borders to other parts of the world and i don't think that will make for a safer global financial system. so we do want to be part of international discussions that lead all countries to work harmoniously together to try to raise standards