ladies and gentlemen, mr. frank ware. [ringing bells] [applause] >> ah-ha! yes! in there. frank ware.

mr. franks? >> well, mr. chairman, as it happened, last year i went over and personally lobbied the senate as hard as i could on the grid act even though as i laid out today, i believe that there's some critically important things that needed to be added to it or changed. i met with senator murkowski and others there in the chamber. and the big challenge was that they had differing strategies on what should be done about cybersecurity. now, let me make it so desperately clear here. i believe that cybersecurity is a critically important issue. and i think i would find myself largely in mr. langevin's camp on that issue. but the problem is that the personalities there had a little different strategies on how to address it and i'm trying to maintain protocol here, mr. chairman. they couldn't get together on that and that's why that we felt like the issue should be separated, not because that one is more important than the other, per se, but because i just think it's going to be especially difficult. that's compl

mr. franks. mr. langavei, you're recognized for a five-minute opening statement. >> i'd like to thank you, chairman wit field and ranking member rush and waxman for allowing me to testify on what i believe to be one of the most critical natural security issues facing our country, securing our electric grid from cyber vulnerabilities, an sue to which i've devoted several years of my time and effort. i wanted to be here with my colleague mr. franks as both a heb of the house armed services committee as well as the house permanent select committee on intelligence i sit at an interesting nexus which gives me broad transparency in the national security challenges that face our nation today. i previously testified on this issue in 2009 after a bill that i drafted with then-home land security chairman benny thompson, which was adopted into chairman markey's grid act, i want to thank the committee for includeding me in this discussion here today. we know there are a number of agentors who seek to do harm to

mr. franks? >> mr. chairman, as it happened last year i personally lobbied the senate as hard as i could on the grid act, even though as i've laid out today i think there's critically important things that need to be added to it or changed, met with senator murkowski and others there in the chamber, and the big challenge was that they had differing strategies on what should be done about cyber security. now, let me make it so desperately clear here i believe that cyber security is a critically important issue, and i think i would find myself largely in mr. longevin's camp on that issue. but the problem is the personalities there had a little different strategy on how to addresses it. i'm trying to maintain protocol here, mr. chairman. they couldn't get together on that, and that's why we felt like the issue should be separated, not because that one is more important than the other per se, but because i just think it's going to be especially difficult -- that's complicated this year, you know the white h

mrs. frank and mrs. valerio, sisters jack i can, donna, marina and laura, brothers mark and kevin, and to our san francisco fire department family. we have lost two sons, two brothers, uncles, cousins, friends, and public servants. vince and tony gave their lives in a pursuit of saving lives. their death reminds each and every one of us with the inherent risk associated with being a firefighter. most of us in uniform place our emphasis and focus on protecting and serving others. we try to downplay the risks to our friends and families and sometimes we try and downplay it even to ourselves. we stand here today in the city of st. francis to mourn the loss, but also to celebrate the lives of lieutenant vincent perez and firefighter paramedic anthony valerio. today we stand hand in hand with our brother and sister agencies from across the bay area, the state, and the nation to remember our brothers and acknowledge their sacrifice. today we stand here from every corner of our community and beyond, uniform and

mr. frank: mr. speaker, i want to send message to our allies, and i don't think we are pulling the rug out from under them. look at these wealthy populous nations of western europe. i believe it's a good thing to get rid of gaddafi. does america have to do everything? people say we are e indispensable nation. that's a terrible burden to impose on ourself. we cannot afford it and it cannot be done effectively. let's get people who can dispense with it. my friend, the ranking member of the appropriations committee said, we have to do this because nato can bomb but they can't suppress. what a great bunch of allies, they can bomb on armed people but if they shoot back they got to come running to as you. yes, i want to send a messageto nato. gaddafi's a bad guy. if england and france and italy and germany and spain and the netherlands and scandinavia can't together muster the military force for this weakened poor nation, then let's re-examine the value of this ally. there was in the "king and i" when he

mr. frank: mr. chairman, having heard the subcommittee chairman's discussion of this bill, i now understand why he didn't want to have a discussion of this bill. he wanted simply to accept it so he would not have had to say nothing. since it was not accepted, he did say nothing, he just took five minutes to say it. i take it back, he did say one very important thing and it defines this issue. he apparently believes that speculation in oil is no part of the reason that oil prices go high. and he quoted a democrat, he found a democrat, one of the three democratic members of the commission, the other two of course very he mentally disagreed and we of course did not say this is something goldman sachs doesn't like. goldman sachs is on the gentleman's siled. goldman sachs opposes regulation of derivatives. they merely mentioned in an list report that they believed that -- in an analyst report that they believed that $20 a barrel of the cost of oil comes from the speculation that they engage in. maybe the

then who had just graduated from business school, and mr. frankke to the company about higher him and of course the company was very, very happy to, you know, accommodate the congressman in that case. and it just was a very interesting illustration on how this company operated. >> then you write at the close of 2010, barney frank had this to say. >> i think blaming phan fand freddie mac -- blaming fannie and freddie are a mistake. what's your reaction to that? guest: well, i think he's right about fannie and freddie getting it going. certainly as we report on it, wall street and unscrupulous mortgage lenders took this ball and ran with it big time. this was not simply fannie mae and freddie mac at the wheel. so he's right about that. this is something that they began and then wall street and mortgage lenders took and really in a race to the bottom. host: our twitter comment says i'm sorry if i don't believe they are altruists. specifically, give me names, who stood the most to gain? guest: well, i think that's almost a sort of monetary question. s

brothersulousio and alex and sister marilyn and the valerio fam tam mr. frank lor rain valerio, sisters jackie and donna and marina and lauraand brothers mark and kevin. san francisco fire department family. we lostt two sons, brothers and uncles cousins and friend and public servant. we stand here today in the cathedral of the city of st. francis to mourn the loss and celebrate the lives of lieutenant vincent perez and firefighter anthony valerio. >> that was the fire chief joanne hayes-white. i wanted to know just how many firefighters give the ultimate sacrifice and i called the foundation and in the last 10 years 120 firefighters lose their lives in the state of the california. half of them in california and most from the bay area. >> that is more than 10 a year . i think that this day that is a good figure to have and it highlights the risk and danger that all of us take for granted. >> we don't appreciate it until it happen to us . john is standing outside. you are talking to machine who came to the service in >> yes, we mentioned firefighters from all ov

mr. franks made did. let's do cybersecurity on one bill and let's address the other issues in a separate bill. do you have any thoughts as far as strategy or is that something the committee should attempt to do or not? ms. hoffman? >> as was mentioned earlier, is that cybersecurity is a difficult and complex issue. and emp and other issues are -- are different in nature, although the impact to the country can be devastating, either one. so in order to tackle things one at a time, the administration is looking just comprehensively at the cyberlegislation individually. >> okay. mr. stockton, do you have a comment? >> yes, sir. i think that the cyberlegislation proposed by the administration is a critical step towards protection of infrastructure as a whole. greatly benefited the energy sector as well. clearly, there are threats that we've been discussing that wouldn't be encompassed by this legislation but it's a critical building block on which we need to make progress. >> mr. mcclelland? >> i don't see wh

mr. frank: madam speaker, i think the president erred in not following the war powers act in the spirit of the constitution. he should have asked us. if he had i would have said no then and i say no now. let me disagree with those of my colleagues who have talked about what a terrible man gaddafi is as a reason for the united states to be spending our money there. yes, he's a thaugthug who ought to be removed but it cannot be that america has to be the 911 for the world and that we are the ones who have to respond everywhere, every time. i heard one of my colleagues on the other side say, well, the europeans are there, but let's not poke them in the eye. poke them in the eye? we have for years, since the beginning of nato, been subsidizing them so they have military budgets less than half of ours as a percentage of their g.d.p. so, they can do better than us in health care and competitiveness and every other way. yes, he should be opposed. there are european nations, developed wealthy nations j

mr. frank: mr. speaker, i want to send a message to our allies, and i don't think we are pulling the rug out from under them. look at these wealthy populous nations of western europe. i believe it's a good thing to get rid of gaddafi. does america have to do everything? people say we are the indispensable nation. that's a terrible burden to impose on ourself. we cannot afford it and it cannot be done effectively. let's get people who can dispense with it. my friend, the ranking member of the appropriations committee said, we have to do this because nato can bomb but they can't suppress. what a great bunch of allies, they can bomb on armed people but if they shoot back they got to come running to as you. yes, i want to send a message to nato. gaddafi's a bad guy. if england and france and italy and germany and spain and the netherlands and scandinavia can't together muster the military force for this weakened poor nation, then let's re-examine the value of this ally. there was in the "king and i" whe

mr. frank: madam speaker, i think the president erred in not following the war powers act in the spirit of the constitution. he should have askedus. if he had i would have said no then and i say no now. let me disagree with those of my colleagues who have talked about what a terrible man gaddafi is as a reason for the united states to be spending our money there. yes, he's a thaugthug who ought to be removed but it cannot be that america has to be the 911 for the world and that we are the ones who have to respond everywhere, every time. i heard one of my colleagues on the other side say, well, the europeans are there, but let's not poke them in the eye. poke them in the eye? we havfor years, since the beginning of nato, been subsidizing them so they have military budgets less than half of ours as a percentage of their g.d.p. so, they can do better than us in health care and competitiveness and every other way. yes, he should be opposed. there are european nations, developed wealthy nations just

mr. frank: madam speaker, i think the president erred in not following the war powers act in the spirit of the constitution. he should have asked us. if he had i would have said no then and i say no now. let me disagree with those of my colleagues who have talked about what a terrible man gaddafi is as a reason for the united states to be spending our money there. yes, he's a thaugthug who ought to be removed but it cannot be that america has to be the 911 for the world and that we are the ones who have to respond everywhere, every time. i heard one of my colleagues on the other side say, well, the europeans are there, but let's not poke them in the eye. poke them in the eye? we have for years, since the beginning of nato, been subsidizing them so they have military budgets less than half of ours as a percentage of their g.d.p. so, they can do better than us in health care and competitiveness and every other way. yes, he should be opposed. there are european nations, developed wealthy nations j

mr. frank: mr.nt to send a message to our allies, and i don't think we are pulling the rug out from under them. look at these wealthy populous nations of western europe. i believe it's a good thing to get rid of gaddafi. does america have to do everything? people say we are the indispensable nation. that's a terrible burden to impose on ourself. we cannot afford it and it cannot be done effectively. let's get people who can dispense with it. my friend, the ranking member of the appropriations committee said, we have to do this because nato can bomb but they can't suppress. what a great bunch ofllies, they can bomb on armed people but if they shoot back they got to come running to as you. yes, i want to send a message to nato. gaddafi's a bad guy. if england and france and italy and germany and spain and the netherlands and scandinavia can't together muster the military force for this weakened poor nation, then let's re-examine the value of this ally. there was in the "king and i" when he says, if th

mr. frank: mr. speaker, i want to send a message to our allies, and i don't think we are pulling the rug out from under them. look at these wealthy populous nations of western europe. i believe it's a good thing to get rid of gaddafi. does america have to do everything? people say we are the indispensable nation. that's a terrible burden to impose on ourself. we cannot afford it and it cannot be done effectively. let's get people who can dispense with it. my friend, the ranking member of the appropriations committee said, we have to do this because nato can bomb but they can't suppress. what a great bunch of allies, they can bomb on armed people but if they shoot back they got to come running to as you. yes, i want to send a message to nato. gaddafi's a bad guy. if england and france and italy and germany and spain and the netherlands and scandinavia can't together muster the military force for this weakened poor nation, then let's re-examine the value of this ally. there was in the "king and i" whe

frank. >> a pen, mr. barkeep. it is disability date. >> i thought they had a guy falling you are around with a camera. >> they couldn't follow me around if they wanted to. they can catch me doing anything. what's with the crowd? crack's a layout. >> that is the problem with working. too much instability. stress. tavis: what is the message? you are scanning the government. you're a drunk father of six kids. as we saw, you get your checking go to the bar. where is the social redemptive value of the character? >> what was the first part? [laughter] that is the bad news. the good news is he as a great sense of humor. he loves his children. or at least he knows their names. [laughter] he makes things exciting around the bar. tavis: why -- >> thou was a misunderstanding in the jail. the canadian government. >> what is it about the character that resonates with the american public enough for you to get a second season? >> i do not think there rests on my shoulders. the show was created by paul. there is a british version

mr. frank rusco is the director of energy and science issues and the government accountability office. mr. cory kief is president of offshore -- and mr. michael bromwich is and very welcomed director of ocean energy management regulation and enforcement, previously referred to as mms but now reformed. with that, as you saw on the first panel i'd ask all the witnesses to rise and take the oath. do you solemnly swear or affirm that the testimony you're about to give will be the truth, the whole truth and nothing but the truth? let the record reflect that all witnesses answered in the affirmative. gentlemen the first panel is 1. you are 5. i will ask you to please, summarize your opening statements and stay within the 5 minutes for each other's and our side. i apologize the first panel for going long but it set up questions for the second panel. >> thank you, mr. chairman, committee members, ranking member cummings. i appreciate the opportunity to speak with you today. while there have been numero

mr. zubrow's comment about -- [audio difficulty] >> within dodd-frank issues. o you don't have to go beyond the borders of the united states. >> gentleman's time has expired. mr. carney from delaware, you're recognized for five minutes. >> thank you very much, madam chairman. just joined the hearing, just walked in, so i missed all the lead-up to this. but i was present here this morning when we had the panel of regulators and the discussion, most of the discussion this morning was on the cumulative effect of dodd-frank regulations and so on, capital and liquidity requirements and sheila bair in particular said that she thought that the capital requirements were on the low end. and the governor from the fed, mr. few rule low, i spoke to him afterwards, and he suggested he agreed. we had some back and forth on that. this question may not be germane to the discussion that preceded my arriving, but we have some expertise here at this panel, and i'd like your view on that question. if i could. please. >> the answer to this question is not simple in part because of t

mr. wilson, has the dodd- frank legislation had an impact on banks giving loans to small businesses? >> absolutely. the time we spend on regulatory burden -- the uncertainty that all this regulatory environment and tax environment has created has caused many of our good business customers, those that would normally be expanding, buying equipment, creating jobs, not to pull the trigger on projects. i do not think i have ever had a larger pipeline of loans where the individual businesses are not willing to pull the trigger because of the uncertainty of taxes and regulations. >> mr. wilson, i think he went into this a little bit earlier. i want to give back into it for the record. both mr. cheney and someone else noted that one-third of all banks are exempt from federal income tax. they argued that puts many banks on a more equal playing field with credit unions. you talk about that earlier. again for the record, how does the treatment of subchapter s corporations compared to the credit unions? credit unions are exempt from taxes. if your subchapter s corporation, it passes to the owner

mr. baez, to be quite frank, both sides have engaged in what i call game playing. okay? and this is not a game. and the reason the order was entered in the first place was because both sides were engaged in some form of it at some time. and the reason the order was entered is because i did not want to be at the position i am currently in now. >> and to drive that point home, that this is not a game, as the judge says, he says he may entertain contempt charges against the defense after this trial is over. t.j.? >> all right. david mattingly for us, we appreciate you this morning. and a reminder to our viewers, you saw all that video of people out there fighting for places in line. well, that's not going to happen anymore, because they changed the rules. people have tiny lo line up and day before at certain times, so they don't expect anymore of those scenes we've been seeing outside the courthouse. >>> anyway, we'll turn to the story of amanda knox now. five inmates including a child murderer and a mob boss are coming to her defense. she is, of course, the american who is

mr. zubrow. let me say that ranking member frank acknowledged that he only read small inserts which are most favorable to him and, we pointed out some of the things that were not so in line with -- >> we appreciate that and i'm sure that he and others on the committee will take my testimony in its entirety. >> and, actually, since he lyings your testimony so much, i don't think we'll have any problem getting him to go along with some of these suggestions. >> we certainly hope he will be as enthusiastic about the conclusions as about the premise. >> thank you, thank you. mr. silver? >> yes, thank you, mr. chairman. good afternoon. i appreciate on behalf of the afl-cio and americans for financial reform the opportunity to testify. the americans for financial reform is a coalition of over 250 organizations which represent well over 50 million americans. in the age of global markets any serious effort to insure that we do not repeat the experience of 2008 must include the establishment of an international regulatory floor. otherwise, every country's financial institutions are vulnerable to contagion from

mr. speaker, i rise today to discuss yet another negative impact the dodd-frank act is having on the job growth. as agencies hear the united states are scrambling to meet the deadlines and community banks struggle under a mountain of regulations, we have done great taj to the competitiveness of the united states in the international financial marketplace. other nations have yet to consider the stringent regulations similar to the ones proposed no dodd-frank. mr. yoder: most importantly are the proposed regulation that is would require over-the-counter derivatives to be traded and cleared on exchanges. g-20 nations have state add goal for the end of 2012 as the implementation date of any global derivative reforms. our earlier upcoming deadline of july 16, 2011 for u.s. implementation of derivative reforms puts the u.s. financial market at a significant global disadvantage and will further disrupt our economy, economic recovery, and job growth. let's repeal these damages economic provisions and let's get america back to work again. i yield back. the speaker pro tempore: the gentleman's tim

mr. demint, proposes amendment numbered 394. at the end add the following: section 21, repeal of the dodd-frank wall street reform and consumer protection act. mr. demint: mr. president, i ask unanimous consent that reading of the amendment be dispensed with. the presiding officer: without objection, the senator from south carolina is recognized. mr. demint: thank you, mr. president. i yield the floor. mr. paul: mr. president? the presiding officer: the senator from kentucky. mr. paul: i ask unanimous consent to set aside the pending amendment and call up amendment 414. the presiding officer: without objection. the clerk: the senator from kentucky, mr. paul, proposes amendment 414. at the appropriate place insert the following. mr. paul: mr. president, i ask that the reading be waived. the presiding officer: without objection. mr. paul: this amendment will raise the debt ceiling $2.4 trillion. this will comply with the president's budget. many on the other side have asked for a clean vote on raising the debt ceiling. because i want to get along and go along i want to make this vote available for those who want to raise the debt ceiling.

mr. z ubrow's comment, we thought that's why fsoc was created within dodd-frank. you don't have to leave the borders to find con knicks of the same law. >> the time expired. you are recognized for five minutes. >> thank you very much, madam chairman, just joined the hearing, just walked in, so i missed all the lead up to this, but i was present here this morning when we had the panel of regulators, and the discussion, most of the discussion this morning was on the cumulative effect of dodd-frank, regulations, and so on, capital liquidity requirements, and sheila bair in particular said she thought the capital requirements were on the low end, and the governor from the fed, mr. tarullo, and he suggested we agree, and we had back and forth on that. this question may not be germane to the question that preceded my approving, but there's expertise at the panel, and i want your view on that question if i could. please. >> the question is not simple in part because of the exchange that just occurredded. if you're capital requirement -- if you are looking at risk weighte

he said aside from increasing the risk, dodd frank -- on taxpayers. so mr. zubrow, i thank you for that. and we have some differences but i think we ought to be clear where they are. it goes on more on too big to fail. i notice that one of the contributory factors you said could be considered, would be an increase in the capital charge to offsets the per received advantage of being too big to fail. i differ with that because i do not think we ought to be reinforcing it rather than charge people for what i believe is an increasingly inaccurate perception. when moody's finally gets it has got to be clear cut. it is an increasing recognition that is not the case. we don't want to charge banks excessively. i would hope you would reconsider that. rather than charge the banks for inaccurate perception, let's dissolve the inaccurate perception and that will drop out. margin requirements my new york colleagues have noted when the nonu.s. subsidiary of a u.s. bank is dealing with a nonu.s. entity -- non-u.s. entity, do you under the statute have the authority to take

frank mccort's chances of holding on to the dodgers slim. bud seleg rejected the television contract for $3 billion between fox television and mr. mccourt.id mccourt would take the money to pay out debts, including $100 million he owes his wife. seleg use it wasn't in the best interest of baseball. they have a payroll scheduled for june 30. baseball will be without their best player for up to six weeks. albert pujols knew it immediately. ouch! trying to make the play at first. non-displaced fracture in his left forearm. tied for third in the major leagues with 17 home runs. lance berkman will probably move to first base. jack mckeon, 80 years old, the second oldest manager in baseball history. topped only by connie mac. he has been sitting on his couch and they said come on back and finish the season, we need help. cal baseball must win tomorrow or their dream season is over. 11:00, omaha nebraska, they playtex a&m. virginia scoreless with the bears till the 7th yesterday and they went on from there. cal couldn't score any runs when it counted. when this play was mishandled, it's all over. text a&m 11:00 tomorrow. >> we got them right wh

host: frank joins us from florida. gentlemen.d morning, mr. gelb, i have a comment and a question for you. my comment is this. isn't really the purpose of the troop reduction window dressing of the troops obama already sent there. we are involved in five conflicts in the middle east. it seems that something is going o on. every congressman and president we have had since your organization has been formed has been a member of your organizati organization. and one of the members, david rockefeller said this famously. we are on the verge of a global transformation. all we need is the right major crisis and the nations will accept the new world order, which he terms as a global government system. isn't that what is happening in the middle east, sir? aren't you just trying to get the last few countries left on earth under central banker control? guest: well, i don't believe in global world order or global governance. and i -- we have never polled the members of the council to see what they think. you may remember that on my board when i served as p

mr. sinatra to bring the house band down with penny clark and all those guys. and so, we took them down. we played with frankry grant, all those people. and he said good job, kid. cuckoo. never saw him again. and four years later, i get a call from hawaii, joe, it's francis. i'm in hawaii directing a film. and i just heard the record you did with basie. it's a waltz. da, da, da. and he said i'd like the way you did it. put it in 4/4 for basie. he said, that's what i want to do. would you consider doing a record with me and basie? i said, man, are you crazy? is the pope a catholic? that was in hawaii two days later and worked with him the rest of his life. >> one more past you. michael jackson. i can't not talk about michael jackson. you had -- >> well, what is there to say? in the music, man. ♪ thriller >> started on the wiz and he said i'm going to do an album on this. can you help me sign a producer? singing "ease on down the road" with diana. we thought we'd get him a song. finally got the song, "you can't win" with the crows, you know. >> yeah. >> scarecrow. i started watching him after that and seeing h

mr. wilson, has the dodd-frank legislation, and other regulatory burdens, had an impact on the ability of banks to make loans to small businesses? >> oh absolutely, absolutely. the time we spend on regulatory burdens, the uncertainty that all of these regulatory environment and the tax environment has created has caused many of our good business customers, those that would normally be expanding buying plant equipment and creating jobs, not to pull the trigger on projects. i don't think i have ever had a larger pipeline of loans where the individual businesses are not willing to pull the trigger because of the uncertainty of taxes and regulations etc.. >> mr. wilson, both -- and i think he went into this a little bit earlier but for the record i want to go back into it. both mr. cheney and mr. lussier note in her testimony that about one third of all banks in subchapter s corporations are exempt from federal income tax. they argue that puts many banks on a more equal playing field. you talked about that earlier. just again for the record, how does the tax treatment of subchapter s corporat

mr. chairman from congressman tierney and commerce than frank regarding fisheries be made part of the record. thank you, mr. chairman. let me follow quickly other words that are really well articulated by senator feinstein and her boxer. as it is partly to my colleagues on the other side of the aisle. i hope they will really take note of the extraordinary qualifications that this nominee brings to the table. one colleague mention the fact that he had been the ceo of a major regular -- regulating company. i would respectfully submit that i think my colleague is going to find this is a bold and creative capitalist who has served on more boards of major companies have diverse nature than all of the members of this committee put together. and i think he brings a very level of business expertise at a time when we obviously know we have to create jobs and change the dynamic in this country. i think my colleagues will find both nominees have a strong sense of how to do that in the commerce department is going to be a critical player with respect to transportation, infrastructure, research in the in

the impact of the qualified residential mortgage amendment to dodd-frank was an amendment offered by mrs. hague, ms. landrieu and myself, all with experiences in housing and the marketplace. we put it in because the original dodd-frank legislation said that people making mortgages were going to have to hold risk retention of 5% in that mortgage, which basically would put most everybody in the mortgage business out of the mortgage business except a handful of people. we put in the qualified residential mortgage the specific per am terse by which a mortgage could be exempt from risk retention which were a down payment of at least 20% or if the down payment was less than that it had to carry private mortgage insurance to ensure the effect of an 80% loan. second qualified ratios that demonstrated the couple could pay back the mortgage under any reasonable assumption. third, the house had to appraise. fourth the creditworthiness of the individual had to demonstrate they could pay for the mortgage. those are all the reasonable underwriting criteria that existed before the financial collapse of

mr. soros because as you first pointed out the failures in dodd-frank, but listens to professor epstein that leaves if there should be structure reforms and the other problems that evolved, and i'm curious about the views of the two of you on that subject. >> well, one is a financial oversight board is what we have to worry about that hayek talked about because of the up credible discretions as to what people put on the risk of big risks and which are not. already, there's clear evidence that people are trying to put their competitors on the list and keeps themselves off the list and so forth because they know whether there's an difference in the capital requirements, it's not going to work. i also heard stories to say that the guys who actually do the models in the private area say that all the public models are, in fact, wrok, and so what happens is that they got the wrong model as to whether the source of the credit market or market fluxuations and so forth, you get the wrong results, and the problem as hayek pointed out is if you get every bank under regulations, it always collapses. if

mr. soros because as you best pointed out the failures in dodd-frank, but some listening to professor epstein that leads to the question one whether or not should have had descrur reforms because that is with the refusal to deal and the other issues that evolved. i'm curious the views of the two of you on that subject. >> one, financial oversight board strikes me as being the thing we have to worry about that hayek talked about because of the incredible discretion as to what people are put on the list as risks and what ones are not. we have clear evidence that people are constantly trying to put their competitors on the list and keeping themselves off the list because the difference in the capital requirements it's not going to work and stories of the guys who do the model in the private areas that the public models are wrong and so what happens if they got the wrong model as to whether it's a credit market or market fluxuations and so forth, you get the wrong result, and the problem as hayek pointed out is if you get every bank going under regulations that are wrong, it all captions. if one

mr. ryan. host: beverly, new jersey, frank, on our line.ler: i think it would be a mistake for newt gingrich to run for president. i don't think it is his time yet. i think you'll just see a personality and a political fascination of some of the baggage that he might bring with them. i like him and i think he is a good man. i think he would do a good job but i will support herman cain. i have been listening to what he has to say and i really like what he has to say. i truly believe that he really cares about the united states. i would like to see a head to head african-american race for the presidency of the united states. i would like to see how the liberal democratic voters who go in and push the button for president obama, go in there and how they could possibly vote for this guy. he has done absolutely nothing for our country. i don't think he has any idea what to do. host: go to norman in illinois. what do you think about newt gingrich? caller: i am sad. i was hoping it would begin rich against president obama. he would be incredibly e

meanwhile, investigators are talking to madoff lieutenant frank dipascali and others, still trying to figure out what happened on the 17th floor. >> mrou have anything to say? >> mr. madoff, say something to your victims, sir. >> smith: bernard l. madoff will be sentenced next month. >> in june, 2009, bernard madoff was sentenced to 150 years in prison. in december, 2010, on the second anniversary of madoff's arrest, his eldest son, mark, took his own life. this summer, the trustee appointed to recover assets for madoff victims is expected to begin paying the claims of those who lost money in the giant ponzi scheme. >> next time on frontline... >> 911? >> ...a sudden death... >> she stopped breathing. >> she was limp. she was blue around her lips. >> ...a life in prison... >> they had a dead baby. somebody was going to get convic >> i've seen more lightning stri than shaken babies. >> frontline, propublica and npr unearth more than 20 questionable pediatric death cases. >> there are people that have be wrongly convicted. >> the child cases. >> frontline is made possible by contributions to your pbs station from viewers like you. than

frank mallicoat, by the way. it is 6:30. let's check in with our meteorologist mr.karnow. >> you thought it was february last week. >> yes. as of yesterday it felt like february. today looking good as we are finally seeing the weather turning around now. some low clouds and fog extending across the bay area. that's pretty typical. and by the afternoon, the result will be some clearing and sunshine. temperatures up into the 70s in many spots inland into concord, san jose, oakland of 6 degrees, partly cloudy at the coast. but warmer weather to come. we'll talk more about that in a moment. right now let's check traffic with elizabeth. >> thank you. unfortunately, westbound highway 4 is going to be an extra slow ride right now. we had an earlier accident approaching lone tree way on the westbound lanes of highway 4. it has already been cleared to the right shoulder but there is some activity there so likely some looky-loo slowing as you pass the scene. obviously speeds under 10 miles per hour in some spots. out of antioch, things improve. a live look at the bay bridge t

mr. chairman. and thank you so much for holding this hearing to examine. with of the dodd-frank wall street reform protection act and the freedom of information act also i want to thank the witnesses for appearing today deutsch of the u.s. financial crisis, the congress passed the dodd-frank wall st reform and consumer protection act of 2010. this legislation was crafted as a response to the financial crisis which has cost nearly 10 million american jobs and over $10 trillion in household wealth. nearly 4 million families have lost their homes to foreclosure and an additional 4.5 million have slipped into the foreclosure process are seriously behind on their mortgage payment. according to the financial crisis in query reported a combination of excessive borrowing car risky investments and the lack of transparency put the financial system on a collision course of self destruction. in the years leading up to the crisis, too many financial institutions as well as to many households borut to much leading them to financial distress if the value of the investment decline even modestly

frank has the morning off. >> i am grace lee i could swore i heard something about 90 degrees from mr. lawrence car know? >> we could see 90s thoughing up. today we are getting our way there a bit. 66 degrees san francisco, 71 oakland, 78 degrees in san jose, low 0s beginning to show in the -- 80s beginning to show in the valleys, 90s in coming days, let's check on traffic with giana. >> right around this time we started to see a few cars on the roadways especially through the altamonte pass. 580, extra volume, you can see lots of folks headed to work as you work your way towards the dublin interchange. information on mass transit, back to grace and elizabeth. >>> okay thank you giana. >>> the former bart police officer who killed oscar grant is a free man this morning. owe happen necessary meheserle was -- johannes meheserle was released from jail shortly after midnight. good morning ann. >> reporter: good morning. as core grant's family was here at the los angeles county men's jail last night at the time that meheserle was supposed to be released they got word then that he had been released, but no bod

frank mallicoat. time now nearly 5:00 on this hump day. if you loved yesterday and you want a carbon copy, i think old lawrence is going to groundhog us today. >> mr. popularity with this kind of weather, lawrence? >> we are loving it. it feels hot will you these numbers around normal for this time of year. it's going to feel hot into concord today 91 degrees sunny there 83 in san jose, about 77 degrees in oakland. and 71 in san francisco. enjoy it. we have major changes coming up. talk more about that in a moment. let's check traffic with

radically antibusiness that even massachusetts democrat congressman barney frank and john tierney think it is troubling that mr. bryson is associated with it. these members of congress have described the nrdc as -- quote -- "one of those environmental organizations that has reflection civil attacked the fishing industry inaccurately and without any real environmental basis." and it is not just the fishing industry that the nrdc reflection civil attacks. members of the nrdc staff are on record saying -- quote -- "there is no such thing as clean coal." while gas prices soar and energy jobs are needed, a spokesman for the nrdc has said, "the novment rdc has been very proud and telecommunicationive in fighting flu coal plant proposals in the united states." they've stood in the way also of lifesaving sonar technology that would enhance america's national security. why? well, out of fear that it might harm the whales. they've also filed thousands of lawsuits to stop the production of american energy, and american energy is critical hand a part of our american national -- and a part of our american national security

frank? >> somewhere. >> performance are solid. betsy wilson is perfect as marianne singleton. judy case with the pot smoking mrs.> and there is heart and emotion. i was crying like a little girl throughout this. at the same time, i was overjoyed. it took you on a ride like nothing else. you will not be disappointed if you love the books, if you love the pbs series. so full marks, act, for delivering this really ambitious project, a delicious project but giving us reasons many more reasons more to love armstead morton and his tales. >> you know what? i think it's going to go all the way from geary street all the way to broadway. i really hope it does. here's the info. if you want to see them, this magical barkley free spirit in san francisco story now playing at act on geary street in san francisco. take friends, take lovers, take your family. and see it while you can. >> how long is it there? >> hopefully end of july, may be extended if interest is it there and i think it will be. can you tell i loved it? >> he has a new book out as well? >> yes. right here. here's a photograph. i had a equipment moment with arm

these are just a few examples of the importance of the dodd-frank wall street reform and consumer protection act. thank you mr. chairman and i look forward to the witnesses comments. >> i thank the gentleman. do you care for an opening statement? no more opening statement so we will go on and introduce our witnesses. first we have mr. scott alvarez as general counsel with the board of governors since 2004. he has been with the board for 30 years. also we have mr. thomas baxter jr. and the general counter and executive vice president of the legal group that the federal reserve thank new york since 1995. he also served as deputy general counsel of the fomc. mr. baxter has been with the new york fed for more than 30 years. without objection, your written statements will be made a part of the record. it has been agreed upon by the witnesses, ranking member clay of myself and mr. alvarez will deliver the oral remarks for the joint written testimony of mr. alvarez and mr. baxter. this testimony may run longer than the customary five minutes and i yield now to mr. alvarez. >> chairman paul, ranking member clay membe

frank better. and i yield the floor mr. president.elaware i >> the senator from delaware is mr. preside nt recognized.od t >> it's good to be with you morni again. spent most of the morning withthis you and part of the afternoon. is this-- is really a difficult issue for a number of us in the senate si because dewe have friends on both sides of this issue, and it'sf also a difficult issue for a lot b of people because we don't want to be unmindful of the concernsely raised legitimately by the merchants for a number of years about the dead it charges we had and to pay and we don't w want to be unmindful of the concerns raised by credit unions.redit one of my colleague said i don't want to vote on this again, i on had a vote on it once i don't want to vote on it again.want toave he said i certainly don't want to have to vote on it twice.e ide another colleague said to me i thcan d don't like the idea of kicking a can of the road having a 24he month pause and maybe the new congress administration that's not what i'm interested in doing. one colleague said why do we fixleague thiss

host: frank joins us from florida. gentlemen.d morning, mr. gelb, i have a comment and a question for you. my comment is this. isn't really the purpose of the troop reduction window dressing of the troops obama already sent there. we are involved in five conflicts in the middle east. it seems that something is going o on. every congressman and president we have had since your organization has been formed has been a member of your organizati organization. and one of the members, david rockefeller said this famously. we are on the verge of a global transformation. all we need is the right major crisis and the nations will accept the new world order, which he terms as a global government system. isn't that what is happening in the middle east, sir? aren't you just trying to get the last few countries left on earth under central banker control? guest: well, i don't believe in global world order or global governance. and i -- we have never polled the members of the council to see what they think. you may remember that on my board when i served as p

mr. kingston: we're not in agreement with that and i did not support the dodd-frank bill. the gentleman sounds like he's studdied the cftc, but as you know, on the many rules they're planning to implement under dodd-frank, some were implied under dodd-frank and not specifically laid out. a number of them have no cost-benefit analysis. a numb of them will strap american companies and not the asian or european markets and the reason why that's important is that if you are a market, it's not like a manufacturing plant where you're making automobiles or cars or tanks or something like that, what the commodities business has more, you change the rules in the international marketplace and american companies have to deal with things at one level and their asian and european counterparts and competitor yoss don't have to, they're going to go overseas. this is the one-year anniversary of the summer of recovery when i guess we were, i'm not sure what we were celebrating last year, because the jobs were not created but this runs off jobs and that's what we're concerned about. mr. gar

mr. speaker. i rise today to object to the franking commission the majority, exercise in blatant and transparent censorship on a medicare mailing and i other colleagues of mine wish to send to our constituents. i'm not allowed to call it the ryan budget even though the republicans called it the ryeant budget, because it's become unpopular. i'm not allowed to refer to changing medicare to a voucher system even though mr. ryan himself referred to it as a voucher system. i must now call it a premium support system. these changes among many others are censorship at its worse when we don't like something, when it's not going well for us on the majority side, we suppress it. this censorship would make former soviet censors blush at the breathtaking nature and sweeping scope of the suppression of free expression, free ideas here in the nation's capital. i yield back. the speaker pro tempore: the gentleman's time has expired. the gentleman from indiana. without objection, so ordered. >> i rise today to talk about jobs. last week during the district work period i met with local business leaders, toured businesses t

frank better. i yield the floor, mr. president. bthe presiding officer: the senator from delaware is recognized. mr. carper: mr. president, good to be with you again. spent most of the morning with you and now part of afternoon. this is -- this is -- this is -- this is really a difficult issue for a number of us in the senate because we have friends on both sides of this issue. and it's also a difficult issue for a lot of people because we don't want to be unmindful of the concerns raised legitimately by merchants for a number of years about debit charges that they have had to pay and we don't want to be unmindful of the concerns of banks, be they big or licialtion or by credit unions. one of my colleagues said, i don't want to vote on this. one guy said, i certainly don't want to have to vote on it twice. another colleague said to me, i don't like the idea of just kick the can down the road, having a 24-month pause and maybe the new congress, the new administration, maybe it'll all go away. that's not interested in what i'm doing. one of my colleagues said, why don't we fix this problem rather