mr. dudley. we're proud of his service to the country and to welcome all of the participants today and my colleagues. i would like to ask mr. dudley, what would be the impact on the u.s. economy and american taxpayers if europe experiences a deep depression? >> thank you for the kind words. if you point to a deep recession there would be significant consequences for the united states would the first would be in terms of our ability to sell goods and services to europe. we would have trouble exporting to europe and that would have consequences for employment and manufacturing in the united states. the second transmission channel would be the u.s. banking as we discussed earlier. u.s. banks have a large exposure to europe. the european economy is doing very poorly as you suggest, clearly that would put stress on u.s. banks, capital and liquidity so that could have implications for credit availability in the united states. third, if europe were to go into a deep recession this will also be quite cha

mr. dudley. on october 27th, five calls to the new york fed to discuss the situation of mf global, and on the 28th, more calls to the new york fed. what was the substance or what was the -- what came up in those conversations? what was the purpose of making the calls? >> congressman, first of all, i was called by mr. dudley. i think proceeding that first series of calls that you identified to keep the federal reserve posted on how we saw our liquidity position, how the clients were reagenting to us and -- reacting to us and given the steps and stress that was being exhibited in the marketplace. >> so you identified the marketplace and safe to assume in that point in time you discussed mf global was in trouble? >> we were not discussing that we were in trouble, but discussing how we managed our liquidity position and what steps we were taking in that context. >> was mf global in trouble at that point? >> in my view, we were having stressful conditions in the market, but i thought bewere able -- we

mr. ely and go across. tomoow, we have president dudley of the new york fed appeared to have the individual of the federal reserve board downtown here who deals with international markets. we also have a representative from treasy. treasury. they are even closer than the fed and certainly closer than york. but what questions would u.s. tomorrow? what questio if you had to boil it down, would you ask in tomorrow's hearing? >> how will this play out of the next six months to a year? i do not expect you to get a very candid answer, but i do think that that is the question. what are the various scenarios as to how this situation will play out over the next two years? and what will be the feedback effects on the u.s. economy? >> i've provided specific questions in my testimony. >> what is the no. 1? >> what comfort they have that 17 cntries, each with different political dynamics at home will be able to come to a solution? what is the purpose of their policy tied to that? short-term? medium-term? long term? what is the effects policy in the environment where, most of the 17 leaders do have what they would like to see

mr. ely and go across. tomorrow, we have president dudley of the new york fed appeared to have the individual of the federal reserve board downtown here who deals with international markets. we also have a representative from treasury. treasury. they are even closer than the fed and certainly closer than york. but what questions would u.s. tomorrow? what question, if you had to boil it down, would you ask in tomorrow's hearing? >> how will this play out of the next six months to a year? i do not expect you to get a very candid answer, but i do think that that is the question. what are the various scenarios as to how this situation will play out over the next two years? and what will be the feedback effects on the u.s. economy? >> i've provided specific questions in my testimony. >> what is the no. 1? >> what comfort they have that 17 countries, each with different political dynamics at home will be able to come to a solution? what is the purpose of their policy tied to that? short-term? medium-term? long term? what is the effects policy in the environment where, most of the 17 leaders do have what they woul

mr. ely and go across. tomorrow we have president dudley of the new york fed, we have the individual federal reserve board downtown here who deals with international markets, we'll also have a representative from treasury. i know it's a long commute from them. they're even closer than the fed. but, and certainly closer than new york. but, um, what questions would you ask tomorrow? what question if you had to boil t down would -- if you had to boil out down would you ask in tomorrow's hearing? >> the question i would ask is, ladies and gentlemen, how is this going to play out over the next six month toss a year? now, i don't expect you to get a very candid answer, but i think that that's the question. what are, what are various scenarios as to how this situation can play out over the next six months to a year, and what are going to be the feedback effects -- what will be the feedback effects on the u.s. economy. >> mr. rosner? >> um, i provided specific questions in my testimony. >> yes. what's your number one? give me, you know -- >> well, what comfort do they have that 17 countries each with different political d