kroll? >> on the issuer side of our business, we also have a sub scratch in business, on the issuer-paid agencies, which is done our first five transactions, we do the same thing. it's only about correcting any factual errors that we may have spent so it's a standard practice in industry. >> correct. >> thank you. >> go back back to the gentleman's time. >> well, i want to thank this panel. it's been a very good hearing, and we appreciate your time and your thoughtful testimony. and just want to remind the members have additional questions for this panel, which they wish to submit in writing, without objection the hearing record will remain open for 30 days for members to submit written questions and to place the responses into the record. it is no further business this hearing is adjourned. >> thank you, mr. chairman. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> is thinking of choosing a drawing down risk with specific purpose of

james gellert of credit ratings, mr jules kroll chairman and ceo of kroll bond rating agency. mr. larry cabbage, stearns school of businessed and mr. smith, chief operating council of public employees retirement association. i would remind you your written statements are made part of the record and you will be recognized five minutes. mr sharma. >> thank you, members of the subcommittee. good morning. my name is deven sharma and i am president of standard and poor's and served in that capacity since 2007. i am pleased to appear before you today. much has changed with regard to credit rating agencies over the past several years. both in terms of how we go about the work and the regulatory framework in which we operate. for our part we at standard and poor's have undertaken a variety of initiatives in recent years designed to further our fundamental mission of providing high-quality independent benchmarks about credit worthiness of debt security. these initiatives include measures to strengthen governance and control framework and have the analytics and criteria for you to raise iss

kroll is probably the most popular. it is similar to in kitchen appliances, stainless steel. is good. it goes with all color schemes. >> there was a recent change to san francisco's codes that said you could not have more than one sitting turned on at any more than one time. so you cannot have multiple salaries and more for water savings. >> right. a lot of people like showers for two, and now, you are saying one valve for one shower. >> i think you could probably sit flow rates could be adjusted, and you could probably make it happen, but it is beginning to be very tightly regulated. tell us, when people come in to buy, what is it that they like? what are they actually buying? >> a lot of it has to do with style. first is for the lab faucet's. you have the widespread, the two handles, hot and cold. very modern design. >> people like modern. >> people like modern, but we are in san francisco, so we get a wide range. then the one hand, very popular, ada-approved. saves water. very easy to use >> > one of the standards for commercial, not residential, is that you have to be abl

kroll, would your answer be the same, or would it be different? >> .as an nrso, which is one of the reasons we became an nrso, we have access to a lot of information. we have just in the last 30 days braden 3, and in two weeks, it will be five commercial mortgage-backed deals. we are privy to the same information that the oligopoly gets if they are on those deals. >> ok, pas were you disappointed or pleased with the provisions of dodd-frank, related to the credit rating agencies? >> i think by and large, and is disappointed with them. i think the idea behind dodd- frank and my understanding was the rating agencies would be to create transparency, create accountability, increase competition. in fact, i think what happened was a lot of punitive, directive initiatives toward the big three with unintended consequences that her to the variety of us who would consider being nrso's or those who are already nrso's. competition is what is going to seawall bid, and i really do not think that dodd-frank contributes to that mission. -- competition is what is

kroll, to you want to chime in? >> i do not think ratings agencies have the wherewithal, the intellectual range, the experience to be doing great things on 100 countries around the world. i question whether this is the job of a private-sector entity to be looking at the united states government or any other government and reaching decisions on their levels of credit worthiness. what we have seen throughout history is a constant activity of being a day late and a dollar short. running around in front of the parade. is this new news? we are not qualified to do this. we are too small. the question is whether private enterprise should be in this business for pay. >> thank you. >> i thank the gentleman. now the gentleman from texas. >> mr. sharma, do you believe the amount of debts held by the united states poses a systemic risk? >> the growth rate of the debt burden is something that needs to be addressed for us to continue to assess the credit worthiness of the sovereign debt. >> in the political record we are seeing t

caller: what you're gas said about being kroll, taking away from medicare and medicaid, i happen to be severely disabled 68-year-old woman buried my husband in blind. we are cut $100 on our ssi. took away our dental and eye care. now the teeth are calling out. they called the golden years. i'm also upset with governor brown because he did another cut on our ssi. hate the way they keep bringing up the cut medicare and make it a state bank. it is not the poor people possible. these rich people in congress making the rules, it is their fault. picking on people that are disabled, about the middle of the month they are out of food, and it just incenses me that they cannot get it together. host: as go to new york. gerald is an independent. caller: under the 14th amendment, the president has the right to see to it that the bills of the government are paid. we already ran up the debt so we need to pay the bills. i don't understand why he does not just say, not paying the bill is a clear and present danger to the public order. therefore, i am going to direct secretary geithner to pay the bills.

caller: what you're gas said about being kroll, taking away from medicare and medicaid, i happen to be 68-year-old woman buried my husband in blind. we are cut $100 on our ssi. took away our dental and eye care. now the teeth are calling out. ey called the golden years. i'm also upset with governor brown because he did another cut on our ssi. hate the way they keep bringin up the cut medicare and make it a state bank. it is not the poor people possible. these rich people in congress making the rules, it is their fault. picking on people that are disabled, about the middle of the month they are out of food, and it just incenses me that they cannot get it together. host: as go to new york. gerald is an independent. caller: under the 14th amendment, the president has the right to see to it that the bills of the government are paid. we already ran up the debt so we need to pay the bills. i don't underand why he does not just say, not paying the bill is a car and present danger to the public order. therefore, i am going to direct secretary geithner to pay the bills. if congress does not agr