mr. garrett: that to me, mr. chairman, if that's not material, this occurring over a five-year period of time is a systemic problem in the organization, i don't know what is. i yield back. chairman hensarling: the gentleman's time has expired. the chair now recognizes the gentleman from california, mr. sherman. mr. sherman: mr. chairman, the american people need an assurance that this cross sellingmania that has ahe flicted -- that has afflicted wells fargo is not to be found at the other behemoth banks. i would urge you to have hearings where we hear from the c.e.o.s of citi, the others, and until then i hope that you would join with me in a letter of inquiry to ask what new account opening quotas that had their for bank tellers. how many people they fired for not meeting their quotas. or how many people they fired for opening phony accounts. we have wells fargo before me, but i don't think, mr. stumpf, that you should be alone in this joyous experience. your colleagues should at least come forward with some ass

mr. garrett: that to me, mr. chairman, if that's not material, this occurring over a five-year period of time is a systemic problem in the organization, i don't know what is. i yield back. chairman hensarling: the gentleman's time has expired. the chair now recognizes the gentleman from california, mr. sherman. mr. sherman: mr. chairman, the american people need an assurance that this cross sellingmania that has ahe flicted -- that has afflicted wells fargo is not to be found at the other behemoth banks. i would urge you to have hearings where we hear from the c.e.o.s of citi, the others, and until then i hope that you would join with me in a letter of inquiry to ask what new account opening quotas that had their for bank tellers. how many people they fired for not meeting their quotas. or how many people they fired for opening phony accounts. we have wells fargo before me, but i don't think, mr. stumpf, that you should be alone in this joyous experience. your colleagues should at least come forward with some ass

mr. garrett: when you got the pricewaterhousecoopers analysis, when was that? mr. stumpf: that was late in 2015. early 2016. mr. garrett: as soon as you had that has that been filed as material statement? mr. stumpf: we considered the facts and circumstances and we believe that not to be material. mr. garrett: it's not material. why not? r. stumpf: remember, the p.w.c. material looked at 93 million accounts that we opened over four years. hey could not rule out through a large data analytics about 1.5% of those accounts. that's still a lot because of the size of the organization. mr. garrett: that to me, mr. chairman, if that's not material, this occurring over a five-year period of time is a systemic problem in the organization, i don't know what is. i yield back. chairman hensarling: the gentleman's time has expired. the chair now recognizes the gentleman from california, mr. sherman. mr. sherman: mr. chairman, the merican people need an assurance that this cross- selling mania that has that has afflicted wells fargo is not to be found at the other behemoth banks

mr. garrett. and it helps the bipartisan jobs act reach its full potential by maintaining a clear and commonsense approach to regulations for private offerings. again, it simply helps smaller companies raise capital. you cannot have the benefits of capitalism for american families without capital. i commend each of my colleagues on the house financial services committee for authoring these bills, for furthering these bills and for what they will do to ensure that we can have economic growth for all, bank bailouts for none. now, we will soon hear from the other side of the aisle, mr. chairman, and if history is our guide, we will have great angst in wailing and gnashing of teeth that somehow this is hurting consumers. nothing, nothing in this package does anything to detract from the securities act of 1933, the securities exchange act of 1934, investment advisors act of 1940, the sarbanes-oxley act of 2002. the list goes on. fraud is fraud. fraud is illegal. you cannot have competitive, efficient m

mr. garrett had a credible point. he was politicizing our committee.e: were you satisfied at the answer of fed chair yellen when it came to your question about the enormous failure of risk management at wells fargo? congresswoman waters: here's what -- i complimented her because she has used her influence and her power to make regulatory changes. we've been accused of one-size-fits-all and she made it very clear that she was willing to do that but she would continue to use her power to examine the management of risk. she would do whatever is increase, including the capital requirements on institutions. way southd she in any you -- did you hear any answer their? -- any answer there? congresswoman waters: she doesn't have the supervisory responsibility like the consumer protection bureau. if we see this kind of that has been revealed to us with all these accounts being created, does that signal that there is mismanagement and what will she thehen they bring information from the living wills before her? will this give her an opportunity to say something i

mr. garrett. >> thank you, mr. chairman. by stumpf, let me start making a few observations and then i will end with a few questions. first and foremost, i find it, as we all do, extraordinarily troubling that as i look through the history, timeline of the scandal, that stretches over , as has already been testified to, 5000 employees dismissed for their involvement in opening unauthorized accounts . it was also troubling, firing did not happen at one time. my understanding is that roughly 1000 employees per year. extraordinary how wells fargo management did not actively and decisively move to stop those activities after the first 100 or 500. the fact that it was allowed to go on and on for years is apparently a failure of corporate governance and a failure candidly, of your management. your management to do what is foremost, protect customers, who have trust in you. what concerned me even more is that it appears most of the 5000 employees fired for low-level or mid-level employees. the highest level was a branch manager. it

mr. garrett, chairman of the capital market section. as you know, last week there was the big fomc meeting, and surprised, the fed decided to continue the extra mary monetary policy. i know you have taken the position that are all purely data driven. withhas nothing to do politics. less and less old really do believe that. yellen helps, clinton dodge a bullet from the l.a. times, is the fed politically biased? market watch, a fed rate hike and other important decisions being put off until after the election. you have told the committee and the public on countless occasions the fed is not subject to undo political pressure. as the saying goes, perception is reality. the public increasingly believes the fed independence is nothing more than a myth. and the fed has a cozy relationship with the obama administration and higher ups in the democratic party. you personally have weekly lunch with the department heads at the department of treasury. there is a revolving door between the treasury appointees and the board of governors. chairman bern

garrett, ms. wagner and mr. emmer. their efforts on behalf of our nation's investors and small businesses. mr. chairman, today and tomorrow, the house will consider legislation and allow small businesses and those investing to access needed capital without being subject to burdensome and unnecessary regulation. as we have seen throughout the financial services sector and across our economy, one size fits all rules are damaging our nation's businesses, financial institutions and as a result, american workers and their families. main street has been crushed under this administration's regulatory regime as even the ranking member admits. .r. 2357, three bills that passed the committee this year strengthens and facilitates access to capital. h.r. 5424, investment modernization act of 2016 eliminates requirements for investment advisers, allows for greater capital formation and development and streamlines elements of the 76--year-old investment advisers act. i met with a company in my district that relied on private equity

mr. garrett. now if you're not paying attention when garrett and i can agree on hr 2625 that directly relates to the fed's ability to bailout banks. all my colleagues are welcome to join that bill as well. i know mrs. yellen wouldn't like that bill and i appreciate that but doesn't kill you. just squeezes a little. there are bills that are out there to do more. all you have to do is read them and join us. if garrett and i can do it, you sure can find a way to do it. don't get used to us working together either but that's a different issue. mrs. yellen, let's assume for the sake of discussion we had a large bank you're keeping a very close eye on. and then over the last five years has had 16 enforcement actions against them including one from the fed. let's assume the bank had a fed fine of $85 million. and in that agreement the consent agreement that they signed with you they said internal controls are not adequate to prevent instances and in order to receive incentive compensation, altered or fal

mr. garrett, for one minute. >> thank you. mr. chairman and mr. secretary, good to see you again. i understand you're a tough man to nail down, to get to this hearing today, even though it is the rule of law. but i guess i would be, too, if my job was to come here and try to defend. so, you know, we're starting to get a point of add mip straminif people talk about legacy and what you'll be leaving behind. when it comes to it, the -- it will be remembered by what, secrecy, and the continue refusal by administration and especially you to answer the most basic and simple questions to provide transparency to either this committee, to congress, and most importantly, refusal to provide transparency to this congress and the american people. the recent course decision invalidating the decision of metlife is a reminder to all of us that we live in a system governed by the rule of law, mr. secretary, and not by the rule of bureaucrats. mr. chairman, i hope the treasury secretary finally understands this, and i look forward to some of his answers today. with that i yield back. >> the time of

mr. garrett. now if you're not paying attention when garrett and i can agree on hr 2625 that directly relates to the fed's ability to bailout banks. all my colleagues are welcome to join that bill as well. i know mrs. yellen wouldn't like that bill and i appreciate that but doesn't kill you. just squeezes a little. there are bills that are out there to do more. all you have to do is read them and join us. if garrett and i can do it, you sure can find a way to do it. don't get used to us working together either but that's a different issue. mrs. yellen, let's assume for the sake of discussion we had a large bank you're keeping a very close eye on. and then over the last five years has had 16 enforcement actions against them including one from the fed. let's assume the bank had a fed fine of $85 million. and in that agreement the consent agreement that they signed with you they said internal controls are not adequate to prevent instances and in order to receive incentive compensation, altered or fal

mr. garrett, -- now, mys god, ifover not paying attention when garrett and i can agree, on hr2625, that directly relates to the fed's ability to bail out banks. i all my colleagues are welcome to join that bill as well. know miss yellen wouldn't like bill and i appreciate that. but doesn't kill you, just squeezes harder. there are bills that are out there to do more. all you do is read them and join us. if garrett and i can do it, you sure as hell can find a way to do it. don't get used to me and garrett working together either but that's a different issue. ms. yellen.it. let's assume for the sake of discussion we had a large bank, big -- one you're keeping a very close eye on. that over the last five years, has had 16 enforce actions against them.as including one from the fed. let's assume the bank had a fed fine of $85 million. and in that agreement, the consent agreement they signed with you they said, or you said, internal controls are not adequate to detect and prevent when certain of its sales personnel in order to meet sales performances and received incentive compensation altered or fals

mr. johnson: right now, on the eve of 9/11, something that profoundly affected all of our lives, garrettdman -- garrett goodwin is here with us, and army combat medic who was 9/11 ground zero at the pentagon and then came here to new york and work tirelessly for 24 days, starting on the 12th, a representative of thousand people like himself. we all came together for new york. you are here and you saw it. please just wave your hand. thank you for being here. yes. yes. yes. thank you. [applause] mr. johnson: that is who we are as a people. that is who we are. this is the craziest election ever. it is. it is crazy because even in spite of aleppo, i think i will be the next president of the united states. [applause] mr. johnson: i do. [chanting "gary! gary!"] mr. johnson: and beyond my wildest dreams, beyond my wildest expectations, bill weld is my running mate and he is somebody who passionately cares about this country and the direction this country is going and made an incredible difference as governor of massachusetts, being a role model for me throughout the whole process. brainy bill a

mr. trump believes that president obama was born in the united states. major garrett is covering the long-running controversy, or side show major good morning. >> good morning. for years donald trump was the celebrity face of the so-called birther movement. even financing efforts in hawaii to prove president obama was born outside of the united states. but now, trump's campaign spokesman, but not yet trump, is trying desperately to put the birther issue to bed. >> i don't need to talk about it anymore, bill. >> yeah i know. >> but it's there, on the record. >> that's been donald trump's refrain on the birther issue since entering the presidential race last year. pressed again on the issue wednesday, trump told "the washington post," i'll answer that question at the right time. i just don't want to answer it yet. that evasion raised questions the position he held publicly for years. >> why doesn't he show his birth certificate? you are not allowed to be a president if you're not born in this country. >> trying to tamp down speculation and political controversy trump's

mr. trump is generous both with his money and his time. cbs news reached out for major garrett is in cleveland. trump's first campaign stop of the day is there. major, good morning to you. >> reporter: good morning. in recent years, donald trump's charitable foundation has spent more than 225,000 to settle lawsuits brought against trump's for-profit companies and most of the money came from donors not named trump. last night in north carolina, trump bragged about using other people's money in business deals, sort of the way the charity has operated and utterly without irony he would bring that fls aspect of foreign policy. >> we cannot have these people come into the united states. we don't know who they are. we know nothing about them. >> reporter: campaigning across north carolina, donald trump offered two remedies to terror threats. tougher screening of immigrants and safe zones to syrian war refuges. the latter paid for by wealthy gulf states. >> it's called opm. >> reporter: that an apt description of his foundation which used funds for personal benefit and business gain.

mr. trump is generous both with his money and with his time. cbs news reached out for clarification and has not yet received a response. >>> major garrett is in clevelandump's first campaign stop of the day. good morning to you. >> good morning. in recent years donald trump's charitable foundation has sent more than a quarter of a million dollars to settle lawsuits brought against trump's for profit companies, almost all that money came from donors not named trump. last night in north carolina trump bragged about using other people's money in business deals sort of the way the charity has operated and he said he would bring that philosophy to at least one aspect of foreign policy. >> we cannot have these people come into the united states. we don't know who they are, we know nothing about them. >> campaigning across north carolina donald trump offered two remedies to terror threats, tougher screening of immigrants and safe zones for syrian war refugees. the latter paid for by wealthy gulf states. >> it's called opm, i do that all the time in business. it's called other people's money. there's nothing like doing things with other people's money. >> repo

mrs. clinton's health. you know, and going back even to the deplorables comment. we heard garretttart talking about trump and violence on the gun thing or people talking about, oh, what about trump going back on his birther comment? did he mean it or not? this brings back a lot of attention and not positive attention on trump. that benefits the clinton campaign. so, for them, they want to get back to that focus on the questions about trump's temperament, his leadership. they want the focus there and the second thing is that mrs. clinton is making an effort now, inside her campaign very clearly emphasizing here's what she stands for as opposed to just being opposed to donald trump. >> so the clintons have taken so much heat recently for their foundation and for their relentless fundraising for spending all of last month with rich people raising money. it's hurt her. i think everyone would agree, democrats agree. what do you make of bill clinton's 70th birthday party last night. star studded event. $250,000 to be a participant in this. why are they doing this? this looks like addict