mr. mchenry: thank you, mr. chairman. and i appreciate my colleagues for their leadership on this important legislation. i rise in support of it, to bring some balance to an otherwise unaccountable bureaucratic agency. perhaps the most powerful agency in government with the least amount of public accountable. it has no accountability to the administration, very little to congress and even less to the american people. and as a result, it should come to no surprise that this bureau has operated with less transparency and less concern for fiscal discipline than even low bar and low standard we hold for our federal tax dollars. certain expenditures have been called into question. in fact, their building expenditures, which is a beautiful release of $150 million plan to renovate a building that they are leasing. now, it's a very rare thing and pretty silly in real estate to an enormous redo of a building to put $150 million at $461 a square foot into that building. it makes no sense unless you understand that these are your ta

mr. mchenry, the chair of the subcommittee. >> congratulations on your appointment and being an important mark in history as well. i have a question. in 2010 you spoke that banks may be required in their debt stack, in their capital, to use a convertible instrument in good times has the debt nature and in bad times converts to equity. you said they may be required to do this. is your intention to use this instrument? >> when i gave the speech at that time i was broadly considering a possible regulation, so shifts in the focus of supervision that might be helpful. there still is this focus on something like that. to improve the result ability of a large banking organization, something that the federal reserve and other regulators are contemplating, is a requirement that bank holding companies hold a sufficient amount of long-term debt. it would play a role similar to the capital instruments you have described. >> you mentioned that in your opening statement, this requirement of long-term debt. would it be your intention to have this contingent convertible capital as a part of that long-ter

mr. mchenry, the chair of the investigation subcommittee. >> congratulations on your appointment and beingt market in history books as well. i have a question. in 2010, you spoke that banks may be required in their debt stack, in their capital, to use a convertible instrument. in good times ditch nature and that times convert to equity, as they may be required to do this. is this your intention to use this instrument? >> when i gave the speech at the time, i was broadly considering possible regulations or shifts in the focus of supervision that might be helpful. there was focus on something like that. i think to improve the results -- the result ability and a large banking organization, some things that the federal reserve and other regulators are contemplating, is a requirement that bankholding companies called a sufficient amount of long-term debt. it would play a role similar to contingent capital instruments you have described. >> you mentioned that in your opening statement. connell: janet yellen continues live testimony on capitol hill and we continue coverage going back there, the s

mr. mchenry, the chair of our oversight investigation subcommittee. >> chair yellen, congratulations on youreing an important mark in the history books as well. >> thank you. >> i have a question. in 2010 you spoke that banks may be required in their debt stack and their capital to use a convertible instrument and in good times have a debt nature and in bad times convert to equity. you say that they may be required to do this. is this your intention to use this instrument? >> so i think when i gave this speech at that time i was broadly considering possible regulations or shifts in the focus of supervision that might be helpful. i think there still is focus on something like that. i think to improve the resolvability of a large banking organization, something that the additional reserve and other regulators are contemplating is what they called a sufficient amount of long-term debt. it would play a role similar to the contingent capital instruments you've described. >> so you mention that in your hoping opening statement about this requirement on long-term debt. would it be your intention to