madoff or people like him. so let me ask you at the outset, number one, what would be the optimal number of people that you believe you need to do an effective job at the sec in light of the volume of business that you have to regulate? and secondly, do you perceive a cultural problem within the agency when it comes to enforcement? >> thank you very much, mr. chairman. i think you eve really summarized very well with respect to the staffing, pressures on the sec, the current situation. with over 35,000 regulated entities and 3,700 staff, it's a job we really can't do in the way the public would like to believe we can do, in the sense of routine on-site presence in many regulated entities. that's going to really require that we leverage third parties. so for example n the rules i discuss related to the custody customer assets by investment advisers, a huge problem in the madoff area. we're going to rely on pcaob registered accounting firms to leverage our capability to ensure the customer assets are being protec

madoff either. >> if i could stop you right there. that's my point. the sec, the man -- the whistleblower, can't think of his name right now -- testified that he had been screaming at sec for five or six or seven years and no one would listen. the authority and regulators were in place but they just failed. and the same thing with the federal reserve. you said, mr. mcraith, that quote, we restrict the nature of investment 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. chairman bernanke testified here in october of 2008 that it wasn't until december of 2007 that the feds ever got involved in the whole subprime housing market. i find in a astonishing. mr. -- has given you hell, where were the states when this went down the tube, but it was the federal -- it was the federal agency with direct jurisdiction that did absolutely nothing. now we're talking about using that standard, the sec standard that blew it with madoff, th

. >> any reaction on the birdied madoff think? -- bernie madoff thing? >> we have appointed a special master to look into the compensation practices of banks and lending institutions that receive assistance under the tarp program. that is in the process of beginning. the president and his id ministration are implementing wide-reaching reforms. i think the president has outlined his views on this clearly since the administration began. on the first one, i think, obviously the judge wanted to send a very strong signal to anybody that invests money on behalf of others of the responsibility that they

humanity has written off bernie madoff. also, "the new york post." inside "the new york daily news" has this photograph. from inside "the new york post" -- they reprint his remarks. he said, "there's nothing i can do, but i will live with this pain for the rest of my life. i apologize to my victims. i am sorry. i know that does not help you, your honor. thank you for listening." caller: my question is -- reggie walton is report about the sexual abuse in prison, i am concerned about the number of rapes being reported. a lot of the men that are being raped, some of them are being infected with hiv and aids. when they come out of the prison, they are sleeping with these different women. host: that is one of the points that he mentioned. 95% of those incarcerated in u.s. prisons ultimately leave jail in move back into society. caller: this is a big problem. what will the of administration do to try to curb this? the african american community, especially the black women, are being infected with this. i am not infected, thank god, but there are so many th

madoff's crimes were extraordinarily evil. the 71-year-old former nasdaq chairman has been in jail since march when he pleaded guilty to securities fraud and other charges in the $65 billion fraud scheme. coming out this afternoon, we will be live with the u.s. pacific commander keating for discussion on the recent north korean nuclear test ban the threats they pose to the u.s. pacific region live from the atlantic council, 5:30 eastern on c-span. earlier today, the supreme court released a find of -- a 5-4 opinion in favor of white firefighters in new haven, conn., overturning a lower-court ruling that had been endorsed by supreme court nominee sonja -- sonia sotomayor. you can hear a portion of the oral argument tonight. that is the second court of appeals that took place in 2007. we will have that tonight at 8:00 eastern. a live look at the white house briefing room. the white house briefing is scheduled to begin momentarily. we will again for just a moment. it appears it may be ready to start. we will look again for just a

bernard madoff is 71-years old. the former nasdaq chairman, and he felt -- and he pled guilty in march and has been jailed since. later, admiral timothy keating will speak at the atlantic council, the topics include north korea's most recent nuclear and missile testing. live coverage of that at 5:30 p.m. eastern or hear on c-span. also earlier today, at the supreme court released its opinion in the case involving a promotional for new haven firefighters was rejected because very few minorities would receive promotions. white firefighters alleged that a bidding the exam at unfairly denies them promotion. the supreme court side -- sided with the firefighters in the 5-4 decision, overturning a lower- court decision. tonight you can hear a portion of the oral arguments before the second circuit court of appeals. that argument took place in december of 2007. we will have that tonight at 8 eastern here on c-span and on line. you can see transcripts and read about reaction coming to the supreme court decision. hillary clin

again, bernard madoff is sentenced to 150 years. we will have more on that as time allows and the news develops. we will have that for you here on c-span. a topic on this morning's "washington journal" was how congressional seats may be preserved or not through redistricting. we will show you that segment now. host: peter brookes is the project manager for re- districting reform. this comes up every 10 years with the senses, but this is an issue broader than just the census. what is your organization concerned about? guest: it is concerned about extreme jerrymanders that have been taking place with more frequency and extremism. politicians choosing voters in their districts rather than voters choosing their elected officials. americans for redistricting reform was greeted as a couple of years ago with a grant from the rockefellers to focus to the extent that we can on the fact that politicians when they draw up the strips with a congressional or state legislative oftentimes jury pick their voters to ensure the election of incumbents

this whole exposure of what has been going on in the housing markets and the madoff thing, it shows that when americans come together like we did in world war ii, basically americans have to come together and look at ourselves as americans. host: let's go to the next caller, on the independent line. caller: i am concerned about inflation. i read a book called, bad money, in that book they identify a situation that george bush made during his first years in office he redid the way we calculate inflation. we used to have a way -- going back 10 years -- we used to have a bread basket of things where people used to check prices in grocery stores, all those things like groceries, gasoline, were all included in that number. now it is gone. the what -- now we get a watered-down picture of inflation. our inflation numbers are 3-4% numbers under what they really are. what would we do about it? we have to start paying for things. everybody wants tax cuts. the wealthiest americans get the best deal. the rest of the people, though wages have stayed stagnant over the years. we have to get back to a p

. >> any reaction on the bernard madoff sentencing? what is the president paused thought on the executive compensation issue? >> let me take the second question first. we have appointed a special master to look into the compensation practices of banks , lending institutions that have received assistance under the tarp program, his ability to review the salaries of the top 100 employees, and in all sense, sign off on that structure, and it is in the process of beginning. i think the president and his administration is implementing far reaching the executive pay reforme. i think the president has outlined his views on this pretty clearly since the administration began. on the first one, i saw that the judge wanted to send a very strong signal to anybody that invest money on the behalf of others, the amazing responsibility that they have to those investors and to the country, and use it to send a message. my guess is that that message will be heard loud and clear going forward. >> [unintelligible] is his mission to get osama bin laden who

bernard madoff was sentenced today to the maximum 150 years in prison for his multibillion- dollar fraudscheme. the sentence was handed down in new york earlier today appeare. the judge called the fraud staggering and noted that it spans more than 20 years. he said the breach of trust was massive. the 71-year old former nasdaq chairman pled guilty to securities fraud and other charges related to the ponzi scheme in march, and has been jailed since. later, admiral timothy keating will speak. his topics include north korea's most recent nuclear and missile testing. we will have live coverage at 5:30 p.m. eastern here on c- span. now to an event from earlier today that the -- from the american enterprise institute on u.s. and india relations. i want to welcome you here this morning, u.s. and india relations in the obama era. this program was conceptualize to examine relations at a very important crossroads. both countries have freshly elected or reelected governments. president obama took office just over five months ago, and the prime minister was elected by a wide margin last month. the w

host: the front page here has the situation in the new york city courtroom yesterday, tears as madoff is still for 150 years. this concerns dick cheney during the u.s. troop pullout. he says he hopes that troops can deal with. he says he would not want to see the u.s. waste the tremendous sacrifice that has gotten us to this point. we want to share with you one of the moment we were able to obtain from inside iraq overnight. the iraqi government is calling this the national day of jubilation. ♪ host: u.s. and iraqi troops marching side by side in baghdad. jane arraf joins us from inside iraq. she is a reporter for christian science monitor. thank you for being with us

under investigation, including the and many ponzi schemes prevalent in the news today, such as bernie madoff, a seemingly ordinary individuals. we are targeting accounting fraud, insider trading and deceptive sales practices. we identified the key players come investigate and bring the appropriate charges come agency and less on our corporate fraud response team. they are specially trained to conduct investigations in a very short timeframe. they can be deployed at minimum notice across the country. we do not take these investigations lightly, nor do we open these without considerable --. these investigations further emphasize the need for independent board members, auditors, and outside accountants. shareholders rely on a board of directors as corporate watchdogs. it often we see conflicts of interest in the corporate suite. we all understand that it is better for a company to repeat its wrong doing before the fbi becomes involved. executives who let the situation escalate to the point of a sudden restatement, and the resulting loss and shareholder confidence, often do greater harm to the c

we argue the loop hopes one of which is called the madoff loophole. >> how does this direct internetompanies like yours? >> how it effects any company, i actually keep trying separate it from over stock. over stock is fine and we don't need capital b

what he said when he spoke openly about having lost his foundation with so much money in the bernie madoff uproar and fiasco. he was so smart and has lost millions but this is the book obviously that continues what he has been writing about the holocaust for our want to get through this book if i can this summer. of those of the five books i plan i hope to get through them all and star on some more. >> host: you are a busy man. where do you do your reading? >> guest: i tried to read before i go to sleep, i try to read on the weekends i just go out on my deck in the backyard especially if the weather is good. i am busy i do not have a lot of time to do fun reading but you make time. it is important. i really do appreciate books 57 wolf pulitzer thank you very much. information, visit our web site at book tv.org. >> and we >> we are back live from chicago with this month's "in-depth" program bill ayers has been our guest of the last two hours reno joined by one of his co-authors, bernadine dohrn the most recent book they have co-authored is "race course" against white supremacy" this is the

district judge denny chin and in doubt and a sense in the bernie madoff case. he has been sentenced to the maximum 150 years in prison for his multi-billion dollar brought screen. attorneys had sought 12 years while prosecutors one of the maximum. judge chin called for a staggering and noted that spend 20 years. he said the breach of trust was massive. the 71-year-old former nasdaq german pleaded guilty in march. he has been jailed since. it is the noon hour here in washington, d.c. in the 1:00 hour, we expect words from president obama on climate change and energy. we will bring that to you live and that is scheduled for 1:15 eastern, here on c-span. today you can watch a house hearing on regulating executive pay at publicly-traded companies. that is it 12:30 eastern time on our companion network, cspan 2. later, admiral timothy keating, speaking at the atlantic council, talking about north korea's most recent missile testing. we will have live coverage at 5:30 eastern, here on c-span. >> file-sharing has wreaked havoc on our business. >> tonight, digital musi

we argue the loop hopes one of which is called the madoff loophole. >> how does this direct internet companies like yours? >> how it effects any company, i actually keep trying separate it from over stock. over stock is fine and we don't need capital but if you talk about a smaller company that needs capital and has to access the capital market. if hedge funds gang up and do this. they can interrupt. there's a company called force protection and they make mind resistance ambush control vehicles. real big vehicles that solve the problems in iraq. once they get in one it's impossible to kill them. the department of defense loves them they ordered 12 thousand and this little company couldn't keep up. they wanted to expand they're factory to make more. they're stock instead got ma nip lated down to 4 dollars. they couldn't sell any stocks so they couldn't raise capital or expand they're factory so soldiers have been dying so some hedge fund guy in new york could have a new ferrari. multiply that by hundreds or thousands. there's a great economist in town here. shapiro says hundreds of co

madoff, there are those whose outsized agreed robbed millions of people of their savings and created the part of a culture that led us to parts of the economic disaster that we have seen in this country. i think the president has tried to address some of that in different proposals as well as financial regulatory reform and we hope that those that have lost their savings will see justice. >> earlier this year the special inspector general for t.a.r.p. tried to get documents relating to aig. the treasury department rebuffed the request and ultimately i think they did turn over the documents the treasury department sought a ruling for the justice department on how independent neil barofsky's is supposed to be. please explain from the administration what is going on and why it appears the treasury department is pushing back against an independent inspector general. >> the president believes inspectors general fulfill a unique and important role in ensuring the programs offered a with efficiency. no attorney client privilege on any of this has been invoked. no documents sought have been

one of them, like i say is the bernie madoff exception. the truth is we've had progress since about september of last year tightening loopholes but there are others and bad guys keep shifting activity. there's one thing that cut as cross all of them. it's called, i won't go in the technical detail bus it's called pre borrow. if we're the pre borrow which is what they did for the banks. it would fix the american marketplace and rid them of this problem. very fine economist here in town. robert shapiro. harvard economist. clinton's under secretary. one of the most respectable economists i've met. just a wonderful fellow and he's recently done a study and the study says, all their arguments against doing this are go knee. they're just, wall street is blowing blue smoke and mirrors to keep anyone from -dc from understanding the pre bar requirement. secondly, so it wouldn't actually have the bad consequences they say. secondly, if we don't do it what happened last september could happen again. >> thanks for coming on. >> thanks so much. >> on t

few weeks ago when he spoke openly about having lost his foundation so much money in the bernard madoffproar fiasco. he was so smart and he's lost millions, but this is a book, obviously, that continues but he's been writing so many years about the holocaust so i want to get through this book, if i can, this summer. those are the five summers i plan on reading this summer. i hope to get through them all and then start on some more. >> you're a busy man. where do you do your reading and how do you find time to do it? >> i try to do a little bit before i go asleep at night. i try to read on weekends. i just gee out on my deck in the backyard and relax especially if the weather is good. you know, whenever you can. i am a busy guy. a lot of a whole lot of time to do fun reading, but you make time, and it's important, and i really appreciate books. >> wolf blitzer, thank you very much. >> thank you. >> to see more summer reading lists and other program information, visit our website at booktv.org. ♪ >> this holiday weekend on book tv, discover an unfamiliar side of our nation's first preside

international bankers are running the country and world economy like a giant bernie madoff ponzi scheme. thank you. guest: the listener raises an interesting point, the federal reserve is not democratic with a small d, it is not directly accountable to the political process. it was designed that way, to give it independence, so there would not be undue political conflict over the decisions made by the fed. by the same token, we are a democracy. and to much independence does, it seems to me, raised questions about accountability. now come in this particular crisis, the fed has done extraordinary unprecedented activity is to stimulate the economy. it does seem to have worked in the short run. it raises questions about the future about debt -- the independence of the fed, and how directly involved in has been in the activities. while i do not endorse the ron paul bill, it does seem to me that we should have a lively public debate about how independent the fed should be and are there ways to maintain that independence while at the same time we increase the accountability. host: up all the f

many ponzi scheme so prevalent in the news today from the high profile financiers such as bernie madoff to seemingly ordinary individuals from arizona, arkansas or massachusetts, even minnesota. we are targeting accounting fraud, insider trading and deceptive sales practices. which we identify the key players. we investigate and bring the appropriate charges, agents and analysts on our corporate fraud response team. as an example our specially trained complex investigations and a very short timeframe and they can be deployed at a moments notice across the country. we do not take these investigations lightly nor do we open cases without careful consideration. we do recognize the impact of a public disclosure of a criminal investigation may have on the companies reputation and on the market as a whole. these investigations further emphasized those in need for independent board members, auditors and outside counsel. shareholders rely on a board of directors to serve the corporate date as of the corporate watchdog. but often we see conflict of interest in the corporate suites. we all unders

few weeks ago when he spoke openly about having lost his foundation, so much money in the bernard madoff uproar, fiasco. he was so smart and lost millions, but this is a book obviously that continues but he has been writing for so many years about the holocaust so i want to get through this book if i can this summer. those are the five book is plan on reading. i hope to get through them all and start on more. >> you're obviously a busy man. where do you do your reading? >> i try read before i go to sleep at night. i try to read on weekends. i just go out on my deck in the back yard and just relax, especially if the weather is good. whenever you can. i am a busy guy. but you make time. and it's important. and i really appreciate books. >> wolf blitzer, thank you very much. >> thank you. >> to see more summer reading lists and other program information, visit our web site at book tv.org. >> and we are back live from chicago with advice month's in-depth program, bill ayers has been our guest for the last two hours and now we're joined by bernadine dohrn, and in the most recent book they co-

so it's not about your sort of madoff or clinton-scale lies, it's about the lies we tell every day. nice to see you, you look good, i feel well. the more lies we're told, the level our own lies increase. clinically depressed people have more accurate views of thermses than powerful people who maintain a facade of strength in order to maintain their ambition, so it uncovers all these things. it's not just about small lies, but it's also about how to handle the lies. but we publish this, it's a psychology book, it's a book about business, it's a book about becoming a more honest person yours. >> how far in advance do you plan your 12 books a year? >> we've got books through next august -- >> august 2010. >> we're starting to think about the following fall. not all those manuscripts have been delivered yet, but we know exactly what's coming up. there's some great stuff coming up throughout this next year. >> as an acquiring editor and an editor, what do you do? >> well, most of my job, 90 percent of my job is spent promoting the books, but i also have the opportunity to edit about a bo

it's not about your madoff and clinton scale lies. it's about the lies. tell three lies every 10 minutes. it's nice to see you. you feel good. i feel well. the moralize we're told, the level our own lies increases. clinicalcally depressed people have more accurate views of themselves than powerful people who tend to maintain a faÇade of strength in order to maintain their ambition. so it uncovers all these things. it's not just about these sort of small lies but how to handle lies in the office, lies in your bedroom, lies at the dinner table. but he published it it's a psychology book. it's a book about business. it's a book about becoming a more honest person yourself. >> how far in advance do you plan your 12 books a year? >> well, we've acquired -- we've got books scheduled through next august. >> august 2010. >> yeah, august 2010. so we're scheduled through august 10. we're starting to think about the following fall. not all of those manuscripts have been delivered yet but we know exactly what's coming up. there's some great stuff coming up throughout

power, a one to make sure that we have sufficient policeman there to police -- how is it that bernie madoff gets behind the sec -- gets by the sec after people like complaint after complaint? i think that is part of the reason they want to create a council with all the regulatory commissions, headed by the secretary of the treasury, so that everybody can watch what everybody else is doing and ultimately -- but we're going to have to put more people in to watch. if you have more incidents of crime in your neighborhood, you might want to be able to have more police on the beat and put the police where the crime is at. i think we are not really watching, nor do we have sufficient personnel to watch our financial industries. host: the next question is from houston, pat, on our republican line. caller: good morning. i think while many americans are very concerned about the financial crisis, i think more of them, or many of them, are more afraid of the politicians in washington than they are of wall street. i watched the questioning of kenneth lewis yesterday, and i was appalled at the treatment

madoff was sentenced 150 years in prison for engineering a $65 billion fraud scheme. manhattan federal court judge called the fraud unprecedented and staggering and said the message must be sent mr. made of's crimes were extraordinarily evil. and the state department secretary hillary clinton addressed the military's overthrow of the country's president over the weekend. in a briefing with reporters, she stated the action taken against the president should be condemned by everyone. she went on to say that honduras must embrace the principles of democracy and respect constitutional order. >>> how is c-span's fonted? >> publicly funded. >> donations may be? i have no idea. >> governor? >> c-span gets its funding through the taxes. >> a public funding thing. >> maybe, i don't know. >> how is c-span's fonted? 30 years ago america's cable companies created c-span as a public service, a private business initiatives. no government mandate, no government money. >>> next, a discussion on health care hosted by americans for tax reform and the media research center. south caroli

things in the last several months that i've been involved in investigations of everything from the madoff case to other tran sack shongs in the market. but studying the inside of our r our regulatory authorities i find that out they may have the authority, they may have the money to act, they sometimes don't know how to act or don't act properly and as a result they have all the authority in the world to prevent something that happened but it happens anyway. i want to say that charge would lie against the federal reserve and that is where we are hung up in the course of the di lem machlt the federal reinvestor had several opportunities to prevent this economic crisis. one is the long-used 14 years of power to lay down the conditions on mortgage obligations in this country that all the way through about 12 of those 14 years the federal reserve failed to take any action until you came on the scene and finally did enact a set of standards across the board. if they had enacted those standards earlier, most of these toxic assets we talk about would not be circulating around the world with the

home that people have been focused on in my state and that is some of the white collar fraud, the madoff case hit a lot of people in our state as we know that came in through a whistle blower to the fcc and nothing was done. can you talk about steps for changes to enforce some of the white collar laws as we look a large amount of money going out and the t.a.r.p. money and things like that that there could be even more white collar fraud. >> yeah, we are in the process of -- i think what i'll call the last wrinkles what is going to be a comprehensive announcement about the program that we're going to have with regard to financial fraud, white collar crimes, more generally. mortgage fraud. we have been working with our state and local counterparts with the other federal agencies come up with this effort. this is a priority for this department of justice to hold people accountable who have defrauded huge numbers of people with almost unheard of amounts of money or those who would seek to misuse the recovery money that is now being -- now trickling into the economy. these are things that we

an expert could not figure out when nixon was truthful and not so the book is not about bernardç madoffor it clinton scale lies about the lies we tell every day birgit each of estelle's on average three lives every 10ç minutes. you look good, i feel well. demoralize weç are told the lel our own life increases. clinically depressed people have more accurate use of themselves andç powerful people who tend o maintain a faÇade of strength in order to maintain their ambition. so he uncovers all these things but not just about the sort of small lies but how to handle lies in the office in your bedroom, lies at the dinner table. but we published it so psychology book, it is about business, it is a book about becoming a more honest person yourself. >> how far and it bans do you plan you're 12 books a year? >> well, we have got a book scheduled through next august so we have a august 2010, we are scheduled through august 2010 is starting to think about the following fall. not all are delivered yet but we know what exactly is coming up. there is some great stuff coming up that this next year.

it is like a giant ponzi scheme run by bernie madoff. guest: i have a co-sponsor of that bill. the federal reserve system ais a private bank. they have been doing some amazing things lately. i think it is extremely a proper for the federal government and those of us in congress to know what the federal reserve is doing. so i think it is a very good bill that ron paul has, with a lot of co-sponsors, and it is basic transparency. the federal reserve is doing things on the up and up, and they should be willing to share that information with us because they do control our money supply. there was an article that appeared two weeks ago on a thursday in the editorial page of "it will street journal" which shows what they have done with m1, which is the supply of money. you go back from 1960, van de graaff

you want to find out a lot more information infoworld.com ann gates like a ponzi scheme with bernie madoff. i appreciate program. thank you. >> guest: to answer the question i am a co-sponsor of that bill. the federal reserve system of course is a private bank. they've been doing some very amazing things lately. i think it is extremely appropriate for the federal government and those of us in congress elected to office to know what the federal reserve is doing, and so i think it is a very good bill that ron paul has. a lot of co-sponsors. that's a basic transparency of the federal reserve is doing things in the up and out than they should be willing to share that information with us because they do control our suwannee supply. there was an article that appeared to weeks ago on a thursday which shows what they have done with the supply of money in the olden days because of that running the printing press and you go back from 1960 and it is buzzing out and down a little bit and you see this tremendous spike this year and that is the amount of money that's been created. new money printed and

bernie may dauf was scamming thousands -- may doff was scamming -- ma doff was scamming thousands -- madoff was scamming thousands into giving up their money. where were the agencies, where were they when speculators were wreaking havoc on the oil markets? i can think of no sector where honesty, independence, and transparency are needed more right now than in our financial and commodity markets. yet the regulatory -- regulators of these markets have been athroud work with no oversight of what they are doing and whether they are fulfilling their mission to protect the american consumer. that's because the inspector general, as the chairman outlined, who should be working on behalf of average americans, were working for the heads of the agencies they should be overseeing. as i said earlier, this is a classic case of the fox watching the hen house. it's having a profound impact on the work of our regulatory agencies. we have done our review and this is something that we pointed out at the committee. the review found that offices of the inspector general, that independent offices, where they ar

the madoff case hit and came through our state due to a whistle blower. can you tell us what's going on to implement f.e.r.a. as well as the changes to enforce some of the white collar losses? we look at the money going out, the t.a.r.p., things like that, that there could be even more white collar fraud. >> we are in the process of ironing out the last wrinkles in what will be a comprehensive announcement about the program that we're going to have with regard to financial fraud, white collar crimes more generally, mortgage fraud. we have been working with our state and local counterparts with the other federal agencies to come up with this effort. this is a priority for this department of justice to hold people accountable who have defrauded huge numbers of people with almost unheard of amounts of money or those who would seek to misuse the recovery money that is now being -- now trickling into the economy. these are things that we will be taking very close looks at and will be emphasizing in our enforcement efforts. >> i know you are also work wg secret