. >> thank you gemming kanjorski. i am pleased we are having a second hearing to examine insurance regulation was a mention that the previous hearing this is an important part of the conversation as a relates to a systemic risk. fortunately the insurance industry is in good shape due to sound state regulation. i think state insurance regulators are doing a good job, and with that i would also like to thank and welcome to today's hearing illinois department of insurance director, mike mcraith and representing nia see. i'm happy to have something good to say about illinois and that does not happen so much these days, but it is important that, the role that the regulators when it comes to duly regulated entities like aig. i thank ods drop the ball and that is why part of the republican regulatory reform proposal preserves the option for a thrift charter but rules ods into the occ and in addition to our proposal addresses risky behavior that aig like entities may engage in, such as with derivatives and i think we establis

>> we had to have congressman kanjorski right now.do you think about what john's talking about? >> that's true. it's optimistic to think that the health care bill will be on the floor before the august break. the president does that, we don't have anything to worry about it because 's a magician. >> a big part of health care, is that going to happen? >> i think what's important about that is it's going to really move the debate to the right issue. that is, there is no free lunch. nothing will drop from heaven to take care of health care in this country. it's got to be paid for. the country has to get into debate over it. i think it's important for the administration and congress to invite the american people into this debate. earlier in the day, joe and i had debate on who should pay for it and whatnot. legitimately, everybody has a good argument why it shouldn't be them. let's have the debate but not confuse the thing and say we can get it as a free lunch. it ain't going to happen. >> is it sellable to the american people, this idea

good morning, chairman kanjorski, ranking member dared and members of the subcommittee. it is an honor to testify before you today on these important issues. my name is john hill. i am president and chief operating officer of the magna carta companies. magna carta was founded in new york in 1925 as a mutual insurance carrier for the taxicab industry. although we no longer ensure taxis, we employ 240 individuals and right in 22 states. we very much remained a small mainstreet mutual insurer with $170 million in direct written premium. i'm here today on behalf of the national association of mutual insurance companies to present our views on systemic risk. it represents more than 1400 property and casualty insurance companies ranging from small for mutual companies to state and regional insurance carriers, two large national writers. nami members from the insurance needs of millions of consumers and businesses in every town and city across america. i serve as chairman of nami task force which was created specifically to develop nami policy response to the financial services

straight ahead the impact on the banking industry and your money with representative paul kanjorski,y special guest, senior democrat on the house financial services committee, weighing no n. for us. after the bell technology stocks getting a lift on the heels of the strong report from intel. is the sector a buy here? it's the leadership group on the up side in 2009. we'll take a look at the investment angle for you 4:00 p.m. eastern. the most heavily traded stocks at nyse, citigroup back above $3 a share, up 26 cents. the most heavily traded. back in a moment. not long ago, this man had limited mobility. last month, this woman wasn't even able to get around inside of her own home. they chose mobility. and they chose the scooter store! if you or a loved one live with limited mobility call the scooter store! no other company will work harder to make you mobile or do more to guarantee your complete satisfaction. if we pre-qualify you for a new power chair or scooter and your claim isn't approved, the scooter store will give you your power chair or scooter free. that's our guarantee. the

paul kanjorski will recover regulation, the stimulus package, north korea and a lot more.. the biggest names ready to turn in their quarter report cards. we've got meredith whitney for an hour. beginning at 8:00 p.m. eastern time. gas prices slumping in the middle of summer. is there a storm on the horizon for motorists? it may have nothing to do with speculators. we'll talk about that plus a new challenger in the coffee wars. earnings season off this week. we had a little last week with alcoa. the axes begins today and tomorrow. we'll cover it in ten minutes. >> thank you. >> it will be exciting. >> coming up next, how will markets position themselves for all of that news on earnings for banks and technology firms? we look at the trading day ahead on wall street. >>> let's get a look ahead to the u.s. trading day and bring back dodge dorland, the chief investment manager of capital management. we had the s&p fall and seems to be hanging around the 880 range. if we get disappointments, how much lower could we get? >> we're at a level that's very critical. we've had a pullb

remember, you will not pass identical bill out of house and senate so you have to conference -- >> kanjorskihat was a pipe dream -- >> you would need a magician. >> are they back on -- >> they told me on friday they're still planning on moving to the floor next week. >> what could happen on the floor? what could happen to -- >> the question is, watch these 21 freshmen, people worried about the pay fors and do they -- do they really put their votes where their mouths are right now? at the end of the day, on cap and trade they were 21 votes down the day of cap and trade. they muscled it through and passed it. >> washington post says the president is going to take the baton on this now. >> yeah. so he's going to be bringing people into the oval office, doing one-on-ones -- >> he's meeting health care providers today and will talk at 1:00 today. >> ama who told us three weeks ago said they would never support a public plan gave us this letter on friday saying they're supportive. that's why you have state chap terse of the ama splintering away from the national chapter of the ama saying, no, no,

i think that chairman kanjorski asked earlier about reliance company and what a federal regulator have discovered that misconduct of its principal or sec didn't discover the misconduct of mr. madoff either. >> and if i could stop you right there that's my point. the sec -- the man, the whistle-blower, i can't think of his name right now -- >> [inaudible] >> marcopolis screamed that he had been referred nine years but nobody would listen be read the field and the same thing with the federal reserve. now you said, mr. mcraith, that quote, we've restricted the nature and the extent of the investments of insurance companies. and the federal reserve has jurisdiction to restrict the nature and extent of mortgage instruments and underwriting standards and they sat on their butt and did nothing. in fact chairman bernanke testified here in october of 2008 that it wasn't until december, 2007 the fed ever got involved in the whole sub prime housing market. i find that astonishing. and mr. capuano was giving you tell, he said where were the states when this went down the tube, but it was the feder

. >> plm kanjorski and i were in a meeting request own of the leading hedge fund managers. the financial times said he was the smartest billionaire in the world. and he said what you said about lehman in your testimony. the problem was that they were -- markets were shock ed they thought they were going to bail out lehman. which is exactly what you said. this gentleman is a private, very private individual. you all come to the same conclusion. now, mr. johnson goes on to say. i believe this is absolutely true. some of our largest financial firms have actually become bigger reltive to the system and stronger politically because of a crisis. the competition has been eliminated. and do you agree with that, mr. johnson? >> yes, sir. >> executives of the surviving large firms have every reason to believe they're too big to fail. they have no incentive to help bring system risk down to acceptable level. that's exactly the problem we have today. responsible official thinking shifts to failout at any dos. we certainly have seen that over the past six months. and here's where i thin

kanjorski and mr. frank for bringing this bill to the floor today. i'd like to mention that this legislation was included in a larger piece of security legislation from the 110th congress, h.r. 6153, the security act of 2008, which passed the house on voice vote. it also included the consume brother text and regulatory act introduced by ranking member bachus and i ask for support of this legislation. this is to ensure that former employees of organizations like the new york stock exchange can be held accountable for any misconduct while an employee of the organizations. many provisions of federal securities law, which authorize the sanctioning of a person who engages in misconduct while associated with the regular lated or supervised entity provide that such authority exists even if the person is no longer associated with that entity or has left his or her job. there are confusing loopholes so employees at some regulated or supervised organizations cannot be sanctioned by the s.e.c. after they leave their position. by clarifying the s.e.c.'s authorit

kanjorski and i., we were at a meeting, one of the leading hedge funds managers. won't name his name. and he, the financial times that he was the smartest billionaire in the world. and he said the same thing you said about lehman in your testimony. the problem was the markets were shocked. they thought that they were going to bail them out because they had bailed out the men, which is exactly what you said. i am not sure, this gentleman is a private, very private individual. but you all can come to the same conclusion. now mr. johnson goes on to say, and i believe this is absolutely true. some of our larger financial firms have actually become bigger relative to the system and stronger politically as a result of the crisis. the competition has been eliminated. and you agree with that, mr. johnson? >> yes, sir. yester. definitely. >> okay. executives of the firms believe they are too big to fail. they have no incentive to help ring system risk down to acceptable levels. that's exactly the problem we have today. now, mr. johnson goes on to say that when you have a s

kanjorski. >> thank you, mr. chairman.the white paper requires that the sec and the sftc make recommendations on harmonizing their statutes and regulations by the end of september. as you know, we have been meeting with the two regulators and yourself and representatives of the treasury department over the past several weeks. it seems they have made tremendous progress on many things, but i think it is clear that on some things, they themselves will not come to resolution. i'm curious if you can give us some insight, and particularly because of the timing of all of this. you mentioned four or five different positions people have taken and i did not fit into any of those categories. i'm in favor of comprehensive çreform, but taking our time to make sure we do not cause unintended consequences. . . we're working at a point where we just not have them together with the treasury, but we're more likely to find a common ground that both your committees can support. we're not quite there yet. >> i appreciate that, and of course

kanjorski. >> thank you. sure whether the committee is having this examining to see whether we could promote these shareholder interests of bank of america. that seems to be what you potentially violated. i'm going to give you an opportunity, since this is your first testimony before the congress to be a little more explicit and descriptive of the situation that happened from september 15 to the 18 by act of congress. proceses were taken. you heard my colleagues on the other side seem to suggest that you over-reacted. that there was an exaggeration of difficulty, and that in some way an abuse of power occurred on behalf of yourself and the president and this congress in acting precip tussly in the fall of -- precipitously in the fall of 2008. now we have had chairman bernanke before this committee on three or four times, and i always ask the question to make sure we restate that picture and that the american people have a chance to understand what happened. i dare say for criticism, i think both yourself and

kanjorski. ranking member bachus, members of the community, i welcome the opportunity to discuss the regulation of financial services. the occ supports many elements of the proposal including the establishment of a council of financial regulators to identify and monitor systemic risk. we believe that having a centralized and formalized mechanism for gathering and sharing systemically significant information and making recommendations individual regulators makes good sense. we also support enhanced authority to resolve systemically different financial firms. the fdic currently has broad authority to resolve systemically significant banks in an orderly manner, but no comparable resolution authority exists for systemically significant holding companies of either banks or nonbanks. the proposal would appropriately extend resolution authority like the fdic to such companies. we also believe it would be appropriate to designate the federal reserve board as the consolidated supervisor of all systemical