mr. paulson. happy new year to you. >> happy new year to you, rules committee. ♪ you found leona just-in-time you found her just-in-time your mta commission was running low your city bridges over crossed know where to go now here she is and i know just where you were going no more doubt and mta fear we found our way because leona bridges came just in time you found her just in time and made the mta better better today ♪ [applause] supervisor campos: next speaker, please. [laughter] >> that is a hard act to follow, i tell you. but i will try. [laughter] first of all, keith jackson. i just want to say, supervisor dufty, thank you for your fairness and open questions and asking questions about things. you're going to be really missed on this board. i just want to thank you. i always thought there were two african-american supervisors on this board. you obviously are one of them. >> a man. -- amen. >> ms. bridges and everyone else here speaks to her commitment to the city and county of san francisco.

mr. paulson, where they're not calls them and subsequently for the nationalization of the banking system in the united states? >> yes, there were. >> did tarp call for a market- briton private-sector alternative to those calls? >> yes, i believe it did. >> despite heated rhetoric about big government takeover, actually would it be fair to say that tarp represented precisely the opposite? >> i agree them . >> there were concerns that tarp was going to be this and less sucking sound that was going to suck up tax dollars and inflate the federal deficit enormously. is that what happened? >> no, i think one of the areas where tarp has succeeded is in the declining estimates of the financial cost of the program. >> what is the net cost currently of the $750 billion that was originally allocated? >> it depends on who you ask. we have all three estimates. the cbo estimate is in the area of about $25 billion. the treasury estimate is about $50 billion. omb has a significantly higher estimate but that is dated back to last year. i anticipate that number will come down. >> the nonpartisan congressi

mr. paulson and mr. greenspan received plenty of attention for the judgments they made in the course of the time it that they were at the helm of the responsible agencies. and so, this is just something that has been pervasive for quite some time. >> thank you. next question? >> i'm with cnn. have you referred anything to law enforcement authorities for further investigation? and secondly, allegedly somewhere in here it says that goldman sachs received $2.90 billion in bailout money from aig. >> let me quickly take each of those very quickly. the commission was instructed in law, we have certain obligations, one of which was to provide this report. another was to examine the major institutions that failed or what have failed but for extraordinary government assistance, and we were also asked to refer to the attorney general of the united states and any corporate states attorney general any person the commission found it may have violated the laws of the united states in relation to the crisis. where the

mr. paulson. >> thank you mr. kildee. let me thank both you for taking the time to coming to ensure your small business background and experiences, go through a pretty lengthy hearing. isolate a touch of something because i know mr. holtz-eakin last night the president said we needed a nation of innovators and leaders. during the speech he reminded us of what it takes to compete for jobs and industries. and as entrepreneurs i can appreciate that especially. but he did say and i agree we need to out innovate, out educate and out of the rest of the world program to make america the best place on earth to do business. there is one american history i have to mention because it's a minnesota successor as one that's the innovation and growth and health care field, medical devices. we heard about that, medical technology industry. that's an industry that employs about half a million individuals and routinely revolutionizes patient care. and for joint health care law doesn't let a new $20 billion tax innovation on this industry.

mr. paulson is recognized. >> thank you, i know when tax reform is brought up it's around simplicity, fairness, the argtses we -- arguments we heard today, but the conversation today is about economic growth and competitiveness without a doubt. i'm wondering if you can just expand a little bit and talk about debt versus equity and the concept of encourage businesses and individuals to borrow and finance their operations through debt rather than asset creation or capital formation and why that's important to focus on. >> i understand that steve was here yesterday talking about the amount of money that my cro soft has overseas, and obviously with that money overseas and the inability to repatriot it without paying more tax, again, i want to again underscore the fact that we all pay tax in overseas markets. the difference with the united states and a very few companies on the chart, you pay an additional tax when you repatriot the money to your country. there's few countries that do that, the united states is one, causes them to borrow money >> i am looking forward to all the topics presented and

mr. paulson. the speaker pro tempore: the gentlemafrom minnesota is recognized for two minutes. mr.you, madam speaker. i rise today in contribute to my friend and colleague, representative gabrielle giffords, one of many victims of a very senseless act of violence this past saturday. i've had the pleasure of knowing gabby and her husband mark, astronaut mark kelly, for several years, even before either of us set foot in this chamber. in my district office there's a photo of gabby, myself and others who were part of a fellowship program which was created to explore the responsibilities of public leadership, advanced thoughtful, civil, bipartisan dialogue and help america's leaders achieve their full potential. gabby is so much about all of these ideals. i found myself looking at this photo over the last few days quite often and i couldn't help but think that all of our communities could use a few more individuals like gabby whose bright smile and kind heart have come to define her tenure here in congress. for many of us here today, the news of the tragedy was gut wrenching. it's hard

mr. paulson for today, ms. ros-lehtinen for today and january 19, dr. fleming for today mr. dreier for january 19 and 20, and ms. foxx for january the 19 and for today. the speaker pro tempore: without objection. under the speaker's announced policy of january 5, 2011, and under a previous order of the house, the following members are recognized for five minutes each. poe of texas, mcdermott, washington. poe of texas is recognized for five minutes. mr. poe: thank you, madam speaker. i want to tell you about a good work that's going on in houston, texas. it's a government -- or it's a program that's not sponsored by the government. in fact the government is not involved in this project at all. it all started 15 months ago when amanda gale and her mother linda gale lee decided they would start going from humble, texas, my hometown, to downtown houston, about 30 miles away, and start feeding the homeless. and so they fixed hot meals for the homeless and they go out to downtown houston in a remote area that have city and they feed those people every night a hot meal. and they've

mr. paulson. the speaker pro tempore: the gentleman from minnesota is recognized for two minutes. mr. paulsen: thank you, madam speaker. i rise today in contribute to my friend and colleague, representative gabrielle giffords, one of many victims of a very senseless act of violence this past saturday. i've had the pleasure of knowing gabby and her husband mark, astronaut mark kelly, for several years, even before either of us set foot in this chamber. in my district office there's a photo of gabby, myself and others who were part of a fellowship program which was created to explore the responsibilities of public leadership, advanced thoughtful, civil, bipartisan dialogue and help america's leaders achieve their full potential. gabby is so much about all of these ideals. i found myself looking at this photo over the last few days quite often and i couldn't help but think that all of our communities could use a few more individuals like gabby whose bright smile and kind heart have come to define her tenure here in congress. for many of us here today, the news of the tragedy was gut wren

mr. paulson. the speaker pro tempore: the gentleman from minnesota is recognized for two minutes. mr. speaker. i rise today in contribute to my friend and colleague, representative gabrielle giffords, one of many victims of a very senseless act of violence this past saturday. i've had the pleasure of knowing gabby and her husband mark, astronaut mark kelly, for several years, even before either of us set foot in this chamber. in my district office there's a photo of gabby, myself and others who were part of a fellowship program which was created to explore the responsibilities of public leadership, advanced thoughtful, civil, bipartisan dialogue and help america's leaders achieve their full potential. gabby is so much about all of these ideals. i found myself looking at this photo over the last few days quite often and i couldn't help but think that all of our communities could use a few more individuals like gabby whose bright smile and kind heart have come to define her tenure here in congress. for many of us here today, the news of the tragedy was gut wrenching. it's hard to believ

mr. paulson, were there not calls and then subsequently for the nationalization of the banking system in the united states? >> yes, there were. >> did tarp offer a market- driven private-sector alternatives to those calls? >> yes, i believe it did. >> despite the rhetoric about big government takeover, actually, would it be fair to say, mr. massad, that tarp represented precisely the opposite? >> i agree, congressman. >> and there were many concerns, and mr. barofsky, you can comment, that tarp would be this endless sucking sound that would suck up tax dollars and inflate the federal deficit enormously. is that what happened in the tarp program? >> no, it is one of the areas where tarp has exceeded is in the declining aspects of the financial cost of the program. >> what is the cause currently of the 700 billion originally allocated to tarp? >> it at -- it depends on the u.s.. -- it depends on who you ask. treasuries most recent estimate is in $50 billion. omb has a higher estimate, but it is stated in may of 2010. i anticipate that number will come down as well. >> but the nonpartisan c

mr. chairman and members of the panel, did you look at secretary paulson's inaction while his former firmexited the subprime market and even shorted it as a conflict of interest? >> in that regard, you can look at the book. we have the tell about what secretary paulson did in his role as secretary and with the firm did. i will advise you to look at the book, look at actions taken, and draw your own conclusions as to what occurred. but certainly the book details, in very specific terms, what goldman sacks did. it certainly details also, in very specific terms, what treasury did at that same time. i want to thank everyone and i also want to remind everyone again in this room that this report is available through public affairs, a publisher and book stores and online in of an e-book version. if you go to our website, you will see how you can get the report. you can download the report for free. you can also see on there that what we have posted this thousands of footnotes in this extensive report. what we have posted on the web today are all the documents related to them. what has not been p

mr. paulson, were there not calls and then subsequently for the nationalization of the banking system in the united states? >> yes, there were. >> did tarp offer a market- driven private-sector alternatives to those calls? >> yes, i believe it did. >> despite the rhetoric about big government takeover, actually, would it be fair to say, mr. massad, that tarp represented precisely the opposite? >> i agree, congressman. >> and there were many concerns, and mr. barofsky, you can comment, that tarp would be this endless sucking sound that would suck up tax dollars and inflate the federal deficit enormously. is that what happened in the tarp program? >> no, it is one of the areas where tarp has exceeded is in the declining aspects of the financial cost of the program. >> what is the cause currently of the 700 billion originally allocated to tarp? >> it at -- it depends on the u.s.. -- it depends on who you ask. treasuries most recent estimate is in $50 billion. omb has a higher estimate, but it is stated in may of 2010. i anticipate that number will come down as well. >> but the nonpartisan c

mr. paulson siaid, no, we'r not going to do that. and then ten days after t.a.r.p. passed, they did exactly that. they injected all that money into the banks. thisas the bank shareholder relief program. and for people now to say, yeah, this is exactly what we voted for, this not what we voted for. we voted to increase lending. that was the goal of the congress when t.a.r.p. was put on the floor. and many of us saw the failings of that. and to now say, oh, yeah, we supported t.a.r.p. for all the righreasons, i think you have to accept the fact that t.a.r.p. stuffed basically $700 billion worth of taxpayer money into big banks, helping out these shareholders. we paid 100 cents on the dollar to goldman sachs because we pumped $14 billion into aig. it was a pass-through. it went right to goldman sachs. 100 cents on the dollar on credit default swaps that shouldn't have been worth half that. we also passed through hundreds of millions of dollars to aig fp employees who mispriced this risk as part of t.a.r.p. they got paid off. they got bonuses from taxpayer money. how yo

mr. paulson. the speaker pro tempore: the gentleman from minnesota is recognized for two minutes. mr. paulsen: thank you, madam speaker. i rise today in contribute to my friend and colleague, representative gabrielle giffordsone of many victims of a very senseless act of violence this past saturday. i've had the pleasure of knowing gabby and her husband mark, astronaut mark kelly, for several years, even before either of us set foot in this chamber. in my district office there's a photo of gabby, myself and others who were part of a fellowship program which was created to explore the responsibilities of public leadership, advanced thoughtful, vil, bipartisan dialogue and help america's leaderschieve their full potential. gabby is so muchbout all of these ideals. i found myself looking at this photo over the last few days quite ofteand i couldn't help but think that all of our communities could use a few more individuals like gabby whose bright smile and kind heart have come to define her tenure here in congress. for many of us here today, the news of the tragedy was gut wrenching. it'

mr. paulson. the speaker pro tempore: the gentleman is recognized for one and a half minutes. mr. paulsen: i rise to o-- to support this repeal of the health care law that most american os pose. last year, congress put jobs on the back burner and had a trillion-dollar overhaul of the health care system. last year, we passed a bill to find out what's in the bill. we found it's a long list of tax increases and job-crushing mandates that will make it harder for for families to make ends meet. this is so serious that the national federation of independent businesses, representing countless small businesses that drive the engine of the economy, found the new employer mandate would cost 1.6 million jobs. in and around my district, hundreds of medical technology companies are facing higher taxes to the tune of $20 billion. we're penalizing innovation when we should be encouraging it. we're preventing life-saving technologies from coming to market when we should be promoting them. the american people deserve health care reform that doesn't break the bank. we need health care reform that l

in the meetings i was and with the then secretary of the treasury hank paulson and you, mr. chairman, risks were very clear. we have seen some progress made. in fact, important progress made, private sector job growth has returned, although not as much as we would have liked. we heard the numbers this morning, something over 100,000 jobs created in the private sector. a dramatic improvement from where we were back in january of 2009 when we were losing 800,000 private sector jobs a month. now we have had 12 consecutive months of private sector job growth. and economic growth, the pattern is the same although actually somewhat better. in the fourth quarter 2008, the economy actually contracted, actually shrunk by 6.8%. more recently in the third quarter of 2010, we saw positive growth of 2.6%. again, a dramatic improvement while not as strong as we hoped. we have now had five consecutive quarters of growth. we've also seen a dramatic rebound in the stock market, after falling to a low of just about 6500 in march 2009. now the dow is now over 11,500. and two of the most respec

in the meetings i was and with the then secretary of the treasury hank paulson and you, mr. were very clear. we have seen some progress made. in fact, important progress made, private sector job growth has returned, although not as much as we would have liked. we heard the numbers this morning, something over 100,000 jobs created in the private sector. a dramatic improvement from where we were back in january of 2009 when we were losing 800,000 private sector jobs a month. now we have had 12 consecutive months of private sector job growth. and economic growth, the pattern is the same although actually somewhat better. in the fourth quarter 2008, the economy actually contracted, actually shrunk by 6.8%. more recently in the third quarter of 2010, we saw positive growth of 2.6%. again, a dramatic improvement while not as strong as we hoped. we have now had five consecutive quarters of growth. we've also seen a dramatic rebound in the stock market, after falling to a low of just about 6500 in march 2009. now the dow is now over 11,500. and two of the most respected economists i

believe it was that serious in the meetings i was in with then secretary of the treasury hank paulson and you, mr. chairman. the risks were very clear. we have seen some progress made. in fact, important progress has been made. private sector job growth has returned but not as much as we would have liked very we heard numbers this morning, something over 100,000 jobs created in the private sector. it is a dramatic improvement over where we were in january of 2009 when we were losing 800,000 private-sector jobs per month. now we have had 12 consecutive months of private sector job growth. the pattern is the same economic growth although somewhat better. in the fourth quarter of 2008, the economy actually contracted, actually shrunk by 6.8%. more recently in the third quarter of 2010, we saw a positive growth of 2.6%, again a dramatic improvement while not as strong as we would hope. we have now had five consecutive quarters of growth. we have also seen a dramatic rebound in the stock market after falling to a low of about 6500 in march of 2009. the dow jones is now over 11,500. two of the most res

in the meetings i was and with the then secretary of the treasury hank paulson and you, mr.irman, risks were very clear. we have seen some progress made. in fact, important progress made, private sector job growth has returned, although not as much as we would have liked. we heard the numbers this morning, something over 100,000 jobs created in the private sector. a dramatic improvement from where we were back in january of 2009 when we were losing 800,000 private sector jobs a month. now we have had 12 consecutive months of private sector job growth. and economic growth, the pattern is the same although actually somewhat better. in the fourth quarter 2008, the economy actually contracted, actually shrunk by 6.8%. more recently in the third quarter of 2010, we saw positive growth of 2.6%. again, a dramatic improvement while not as strong as we hoped. we have now had five consecutive quarters of growth. we've also seen a dramatic rebound in the stock market, after falling to a low of just about 6500 in march 2009. now the dow is now over 11,500. and two of the most respected

mr. chairman, did you look at secretary paulson's inaction while his former firm exited the subprime marketand is this a conflict of interest? >> in that regard, you could look at the book. we have detail about what secretary paulson did and what tghehhe firm did. i would advise you to draw your own conclusions as to what occurred. certainly the book, details, in specific terms, what goldman sachs did and it certainly details also, we believe in very ms, what treasury gedid during that same period. i want to thank everyone and i want to one more time remind everyone in this room that this record is available. it is available through public affairs, a publisher and the stores and online in both book and e-book version. it is available to the government printing office. and if you go to our website, what you will see is how you can get the report. you can download the report for free. you can also see on there that what we have posted is a there are thousands of foot knows in this extensive report, and what we have posted -- there are thousands of footnotes in this extensive report. what has