i would defer to mr. walsh who is the lead regular for most of the servicers, and has been playing a key role in this. but i do think it's a port for the good explain what was in was not covered. and also this is being coordinated with the justice department and state ag's on the law enforcement and. i think there's some hope this can all be packaged together so there's one set of standards for both the prospective reforms to make sure we don't have these errors going forward as was the look back to make sure that borrowers that were harmed receive an appropriate redress. >> so common this recommendation about letting the servicers have outside consultants to investigate them is of concern to, i suppose, many of us. do you believe that outside consultants can do the job that is needed to be done, instead of a regulatory review? >> well, i do think that there needs to be robust validation process. so yes, we would like to see an interagency examination team reviewing sizable samples of the reviews that the indep

klaus pizza will show mr walsh what will happen if you keep bailing them out. you know and you will treaties. was regulated that there must be any bailout because. otherwise. you will. ruin the applique finances of those countries who are contributing to it. as long as each country is responsible for its budget it has to take full responsibility and the only right answer to that is no bailout how do the bailouts affect the german economy in germany we are making a lot of efforts to keep public debt under control. we just amended our constitution we put in their so-called truth and dept break. which. defines the steps we have to take with our. budgets. in order to come to the zero nine and then start paying the debt back. and he is dangerous if this is. infected by. policy national policy of either you are partners. or that's it it's an invitation to a bigger my neighbor policy and you say ok if i don't get any more money from the credits from the capital markets well i'll just take it from the other countries and this is the thing that i cannot explain to my wa

klaus pizza world mr walsh what will happen if you keep bailing them out. you know in the human treaties. it was regulated that there must be any bailout because. otherwise you. you would. ruin the happily clear finances of those countries you are contributing to it. as long as each country is responsible for its budgets it has to take full responsibility and the only right answer to that is nobody about how the bailouts affect the german economy in germany we are making a lot of efforts to keep public that i'm looking for oh. we'll just amend our constitution and put in their so-called truth and that means a ept break. which. defines the steps we have to take with our. budgets. in order to come to the zero nine and then start paying the debt back. and see i mean it is dangerous if you're serious about it infected by. policy national policy of other europe partners. but it's it is an invitation to have a bigger my neighbor policy and say ok if i don't get any more money from the credits from the capital markets or i'll just take it from the other countries

. >> mr. walsh? and you agree also? waving doesn't make it into the record. >> i didn't know you wanted to hear but yes, absolutely. >> that i wanted to hear. >> thank you, was morgan stanley a testimony inside a valentine card? >> yes, but there was no candy with it so i didn't have to report it to the ethics commission. >> certainly there is wide agreement that capital and liquidity standards were most inadequate going into the financial panic of 2008 and clearly there is a convergence of opinion they must be raised but i think the question particularly in this hearing that has to be addressed is what is the cumulative impact of raising those capital standards? what will be the impact of the extra capital standards to be assessed against the institutions juxtaposed the 2,000-plus pagors dodd frank? i am uncertain we know the answer to that question but many testify that we must have stability in our capital markets. i agree stability is a good thing but we have had stability in our employment markets for almost 2 1/2

klaus pizza will show mr walsh what will happen if you keep bailing them out. you know and you would treaties that was regulated that there must be any bailouts because. otherwise you. you would. ruin the. finances of those countries who are contributing to it. as long as each country is responsible for its budget it has to take full responsibility and the only right answer to that is no bailout how do the bailouts affect the german economy in germany we are making a lot of efforts to keep public debt under control. we just amended our constitution we put in their so-called freedom dept break. which. defines the steps we have to take with our. budgets. in order to come to the zero nine and then start paying the debt back. and it is dangerous if this is. infected by. policy national policy of either you're a populist. whether it's it is a.

mr. walsh, you agree also? waves doesn't make it into the record. >> i didn't know you wanted to hear, but yes, absolutely. >> i don't always want to hear, but that i did want to hear. there was no box and candy to report it to the ethics commission. [laughter] >> thank you, mr. chairman. certainly there's wide agreement that capital and liquidity standards were most up adequate going into the financial panic of 2008, and clearly there's a convergence of opinion. they must be raised. i think the question particularly in this hearing that has to be addressed is what is the accumulative impact of raising the capital standards under basel iii? what will be the impact of the extra capital standards to be assessed against the institutions juxtapose the 200-plus pages of dodd-frank? i am uncertain that we know the answer to that question. i've heard many tough that we must have stability in our capital markets. i agree state is a good thing, but we've had stability in our employment markets for two and a half years.

levin: i yield a minute and a half to the gentleman from vermont, mr. walsh. the speaker pro tempore: the gentlen from vermont is recognized for a minute and a half. mr. wal -- one, we must pay our bills. whether those were incurred for wars, whether it's for a prescription drug program that you were for or against, bail incurred. an obligation incurred is an obligation that must be paid. that is the fundamental responsibility that i acknowledge as the citizen that i acknowledge as an american, that i acknowledge as a congressman. this question of a long-term deficit reduction plan, we need it. you are right. we understand that. where is it? you have the opportunity in this legislation to present your plan that will get us on a glide path to fiscal balance. it's not here. suggesting either you don't have a plan or the plan you've wanted -- present does not have the support of the american people. we are playing russian roulette with a loaded gun in the american economy, and the deficit clock is ticking. this requires a substantial response. the approach taken,

it's part of that agreement there was broad based consensus on the basel committee including with mr. walsh that we would be looking at a higher absorption capacity for the institutions and that is a process now and i have been on record thinking of the three injured basis princeton% of the standard would be right. that is actually a moderate but you can look at the studies that have been independently done by academics or the government actually the studies generally support higher capital levels based on the type of analytics i describe it with "the wall street journal" in a recent editorial endorsing the higher capital standards throughout 10% and i thought was interesting the benchmarks they were using on the market demand had a smaller finance company which has no government support whatsoever and the market demands 15 per cent capital requirements. so, i think 10% actually is moderate by all the analytics we've looked at. i would also add this will go out for comment whatever the number this will go for comment and explain the analytics and people will have the chance to provide publi

levin: i yield a minute and a half to the gentleman from vermont, mr. walsh. the speaker pro tempore: the gentleman from vermont is recognized for a minute and a half. mr. wal -- one, we must pay our bills. whether those were incurred for wars, whether it's for a prescription drug program that you were for or against, bail incurred. an obligation incurred is an obligation that must be paid. that is the fundamental responsibility that i acknowledge as the citizen that i acknowledge as an american, that i acknowledge as a congressman. this question of a long-term deficit reduction plan, we need it. you are right. we understand that. where is it? you have the opportunity in this legislation to present your plan that will get us on a glide path to fiscal balance. it's not here. suggesting either you don't have a plan or the plan you've wanted -- present does not have the support of the american people. we are playing russian roulette with a loaded gun in the american economy, and the deficit clock is ticking. this requires a substantial response. the approach taken

as part of that agreement there was broad-based consensus on the basel committee including with mr. walsh that we would be looking at higher loss of capacity for the largest institutions and that is a process now. i have been on record saying it stanford be about right. that is moderate when you look at most of the studies that have been independently done by academics or the government, actually the studies generally support much higher capital levels based on the type of analytics i describe. "the wall street journal" in a recent editorial endorsing much higher capital standards throughout 15%. i thought it was interesting the benchmark they were using let the market do vance of a smaller finance company which clearly has no government support whatsoever, and the market demand 15% capital report in its. so i think the 10% actually is moderate by all the -- we have looked at. would also add that this is going to go out for comment. whatever they number they agree to it will explain the numbers between the analytics. >> how are your metrics different from the occ's? >> i don't know. i hav

levin: i yield a minute and a half to the gentleman from vermont, mr. walsh. the speaker pro tempore: the gentleman from vermont is recognized for a minute and a half. mr. wal -- one, we must pay our bills. whether those were incurred for wars, whether it's for a prescription drug program that you were for or against, bail incurred. an obligation incurred is an obligation that must be paid. that is the fundamental responsibility that i acknowledge as the citizen that i acknledge as an american, that i acknowledge as a congressman. this question of a long-term deficit reduction plan, we need it. yoare right. we understand that. where is it? you have the opportunity in this legislation to present your plan that will get us on a glide path to fiscal balance. it's not here. suggesting either you don't have a plan or the plan you've wanted -- present does not have the support of the american people. we are playing russian roulette with a loaded gun in the american economy, and the deficit clock is ticking. this requires a substantial response. the approach taken, a

walsh? >> thank you, mr. bachus and members of the committee.i appreciate this opportunity to discuss the work of the otc and other banking agencies which reviving capital and liquidity requirements consistent with the dodd-frank act and basel iii. this is a complex undertaking and it is important to determine not only how individual requirements of basel and dodd-frank will impact firms and international competitiveness but the cumulative impact of the provisions as well. the invitation letter raised the issue of an international race to the bottom. i don't think this was a serious concern when regulatory requirements are becoming more stringent around the world. the concern instead is standards are being raised significantly and comprehensively and so much so we could unnecessarily restrict financial remediation and economic performance. at the same time it is certainly true that if the same high standards on not adopted by all countries and enforced with the same vigor u.s. institutions could be left at a competitive disadvantage. our challen

walshes colleague, friend and investigator. he also came here to enter his plea. the former officer's attorney spoke to the media. >> every day he goes over in his head, you know, his relationship with mr butler. because that is what put him in this situation. >> reporter: all four men stood together pleading not guilty to all 38 charges. the three law enforcement officers and former private investigator faced charges to sorted activities to profit, selling drugs, setting up dui stings, embezzling and bribing. the authorities are investigating the marijuana growing operation and prostitution. >> this is the first time we entered our plea on this complaint, have not seen very much discovery at all. >> reporter: three additional conspiracy charges were added including the sale of marijuana and extacy pills. ktvu channel 2 news. >>> the federal judge is giving prosecutors more time to decide if they are going to retry barryy bonds on perjury charges. the home run king brushed off reporters questions when he left the courthouse this morning. bond's attorney asked them to make up their minds quickly. a jury convicted him on obstructing justice and deadlocked on three perjury accounts. >> we

mr. reid: i ask unanimous consent that the environment and public works committee be discharged from further consideration of the following nominations, presidential nomination 341, major general michael j. walsh, united states army, to be a member of the president's -- member and president of the mississippi river commission, presidential nomination number 342, rear admiral jonathan w. bailey to be a member of the mississippi river commission, the nomination be placed on the executive calendar, that the nominations be confirmed en bloc, the motion to reconsider be considered made and laid on the table with no intervening action or debate, d, that no further motions be in order to any of the nominations, that any statements related to the nominations be printed in the record, the president be immediately notified of the senate's action and the senate then resume legislative session. the presiding officer: without objection. mr. reid: morning business be extended for another hour -- [inaudible] -- and that -- the presiding officer: without objection. mr. reid: car calendar number 79, the nomination be confirmed, that any statements related be printed in the record, the president be immediately