according to barney frank, chairman of the house financial services committee, the president should be able to sign new regulation to ensure this by the spring. our executive editor alan friedman caught up with congressman frank to find out more. >>friedman: mr. frank, you have taken a strong position along with the obama administration on the question of bonuses and us banks. what's your feeling about what justice needs to be done? >>frank: well there's two issues there. well, first of all, there is the overall amount, which is wildly excessive by any standard of what i think of what's just compensation but the government is not in charge of that. we do say that the shareholders should have to vote on it. the fact is, that the board ofdirectors have proved to be pretty weak reads when it comes to standing up to the ceo and vice versa. they shine each other's shoes, very happily. so we do, in the bill that we passed give the shareholders the right to vote on that, it's to express an opinion, it's hard to find a way to make it binding, but it's hard to think that they would ignore the o

. >> will be testifying in front of the house financial services committee about the economy and anything else they want to talk about. that'll be live in an hour. >> how about the exit strategy? imagine there will be some questions about that. the sec meets on possibly curbing short sales. huge issue for the market. full details coming up. >> and president obama meeting with key business leaders. it's all happening during this show. we've got a lot of breaking news, big headlines for you. we will be all over it, mark. how are your futures? >> not too good. >> no. >> up 0.70. we get a little break here because we closed a point above fair value. but, you know, looking at maybe 15, 20 points on the dow at the open. let's hit the markets. peel back the layers of the onion starting with brian shactman at the big board. >> thank you. listen, asia and europe were pretty mixed. germany, their economy in an absolute standstill. doint need to go over bernanke and all things going on in d.c. will tobacco the dog and pony show or real insight into an exit strategy? we'll have to wait and see for th

joining us is republican congressman ed royce of california, senior member of the house financial services committee. good to have you with us. >> thank you. >> you voted against it but knew it would pass? >> yes. i think it's irresponsible to vote to increase that debt ceiling unless you're going to do something about what's driving the increase. and the problem that we have right now york you saw moody's yesterday, come out with a report where they said, the aaa rating on treasuries is called into question, unless we do something about these unsustainable deficits going into the future. you don't see that as part of the budget -- part of the president's plan. as a matter of fact, it xo compounds the problem and see in outyears 5% of gdp, numbers 5%, and basically it takes 3% to get into the eu, right? so we are in excess of the standards to get into the eu, even in the out years on the deficit. we're not tackling the problem. >> are you willing to cut medicare, then? >> what we should be looking at doing is, across the board, figuring out ways that we bring this budget into balance. and we should

chief prepared remarks were virtually identical to those delivered yesterday to the house financial services committee and cheaper nike also told lawmakers that goldman sachs and other wall street firms may be looking into a sophisticated instrument investment instrument to make bets that greece will default on its debts. also about the healthcare summit which you can see live on c-span3 and c-span.org, a story from yahoo news saying that a consensus on how to rein in spiraling healthcare costs seem to be emerging as president obama some that the president agreed with assertions by oklahoma republican senator tom coburn that abuse them out account up to a third of the cost of a time of programs like medicare and medicaid. and is a major barrier to worldwide insurance coverage. senator coburn said that the cost is the chief reason millions of people do not have health insurance. that in yahoo! news as we wait for the senate to come in. mr. president. right now there's a meeting at the white house that's been covered extensively by the media live and much anticipation about the meeting between the presi

house hearing. financial services committee and small business committees looking at commercial real estate lending. and small business mortgages. this is the second of three panels. testified opening statement out of elizabeth duke who is a cover on the board of governors of the federal reserve. live coverage here on c-span2. >> that tightening of credit stand for small business lending no longer outnumber the banks that reported an easing of lending standards. federal reserve has been working with banks to foster improve access to credit and prudent underwriting of new loans and we will continue to do so. i believe that the considerable support we get to bank lending to accommodate monetary policy and borrowing facilities has been critically important. in addition to which are that supervisor policy does not inhibit lending, federal reserve join with the other banking agencies and supervisory guidance emphasizes need for banks to continue to make a credit needs of credit worthy borrowers while maintaining appropriate prudence in lending decisions. raising guidance covering commercial real estate l

the house financial services committee is chaired by barney frank .s is a one-hour portion. >> chairman frank, ranking mechanic baucus, thank you for the opportunity to testify on this important subject. our principle is to attract and obtain the executive leadership needed to ensure the ongoing function of the secondary mortgage market while minimizing taxpayer losses. at the inception, the incumbent c.e.o.s were replaced and received no severance payment because most of their compensation has been in the form of stocks and roughly 2/3 of their pay during their ten. ultimately, five of the six highest paid fannie mae executives and the top four freddie mac left but known of them received severance or other golden parachute pames. i would like to add that many of the more 11,000 enterprising employees earned portion of their payments in stock and suffered accordingly. in developing a new compensation structure for senior executives, f.h.a. consulted with mr. feinberg on how to adapt the approach he was targeting. in making that adaptation, a major con

now a portion of the house financial services and small business committee hearing.quickly. let me just outline the rules here first of all. we have three panels. unusually by standards of the congress, the regulator panel representing the public officials are coming second. we didn't want them to state their case and then leave. we wanted people who have questions and needed them to speak first and then others who'll speak after. we have borrowers first, the regulators and then the lenders. because it is a large number of members and it is a tough day, we had originally planned to have this hearing on february 11, the chair of the small business committee correctly argued for having it on a someday where they would be no time pressuresÑi on the members. unfortunately we gotÑiÑi snowed. given the calendars of coordinating two committees, this is the best we can do. there will be two hours for each panel and we will keep the opening statements very, very short. you have just heard mine and with that, i will now call on the gentleman from missouri who is the ranking me

worked for a long time at the house ways and means committee as a staffer. he's a member of the financial servicesity. serving in your first term. correct. >> correct. aaron makes me feel like i'm an old and senior. >> gentleman, you both have been talking about what good friends you are. >> the media is not going to cover all the trains that arive in their station. the most couldn't row versey gets the most coverage. >> when the auto companies start to get their bail out funds the dealer agreements are thrown out. trying to restore some of those rights crib utility to rotary and little league. worked with the administration to get to something everybody could agree with. with the auto companies themselves. they didn't get as much play. this is some bipartisanship. we road in the cock pit of a c 130 transport plane. you get to know somebody more as a person when you experience those things together. caller: i auto degree. we have a fantastic group of freshman. we know part and parcel to getting anything done is to know someone as a human being. unfortunately, i think this year has been extremely p

house ways and means committee as a staffer. so go ahead. guest: i am a member of the financial servicesid work easily in the industry. host: yes, that's what i meant. he's a member of the financial services committee as well as the judiciary committee but worked as a staffer for the house ways and means committee. he is serving in your first term, correct? guest: yes. though aaron sometimes makes me feel like i'm old and senior because he's the youngest member. host: well, gentlemen, you've both been talking about what good friends you are. is there a spirit of bipartisanship that perhaps the media and other folks outside are missing up on capitol hill? guest: well, peter, i mean, i think that certainly on a lot of the -- you know, the media's going to not cover all the trains that arrive safely on time, they'll cover the train wrecks. so the issues that create the most controversy will create the most coverage. i'll give you one example. when the auto companies started to receive bailout funds and they declared bankruptcy, both chrysler and g.m. at the same time, the dealer agreements

worked for a long time at the house ways and means committee as a staffer. he's a member of the financial services commity. serving in your first term. correct. >> correct. aaron makes me feel like i'm an old and senior. >> gentleman, you both have been talking about what good friends you are. >> the media is not going to cover all the trains that arive in their station. the most couldn't row versey gets the most coverage. >> when the auto companies start to get their bail out funds the dealer agreements are thrown out. trying to restore some of those rights crib utility to rotary and little league. worked with the administration to get to something everybody could agree with. with the auto companies themselves. they didn't get as much play. this is some bipartisanship. we road in the cock pit of a c 130 transport plane. you get to know somebody more as a person when you experience those things together. caller: i auto degree. we have a fantastic group of freshman. we know part and parcel to getting anything done is to know someone as a human being. unfortunately, i think this year has been extrem