mr. solomon, the only one -- you are blocking my way, mr. mooney. mr. solomon, can you discuss how your institution supports access to capital for consumers to buy a home, start a business or send their kids to college? mr. solomon: sure. we have not been a consumer bank but we started a consumer business. at this point in time we take deposits and we make small, unsecured loans for consumers that amount from $3,500 to $40,000 but it's a very, very small business. we are not currently in the business where we make mortgages for consumers but we might at some point in the future. mrs. wagner: mr. headline has, how are you helping my constituents get capital for them to buy homes and start a business and send their kids to college? mr. moynihan: sure. we provide mortgage loans to about 3% or 4% of the american population. we do it directly last year. it was $50 billion in mortgage loans. recently we recognized there were -- the time to save for down payment has become longer under the current rules and regulations so we build a $5 billion program to spend

mr. solomon and go this way. you each have six seconds. >> i think we're working to do the best we can in our organization. i think the market does hold you accountable over time. >> they didn't for wells or equifax. >> i can't really comment on wells or equifax. >> mr. scharf. go ahead. >> i would just echo that we continue to try and do the best job we can. i will say from our perspective, the regulators -- >> let me interrupt this. because you know, one of the most powerful means of enforcement of behavior is group affirmation or condemnation. and i realize that you all interact with the heads of these other organizations, but you know what would help? stand up and speak out, because what wells did and continued to do is unacceptable and you ought to call it out publicly for what it is. with that, i yield back my time. >> the gentleman from colorado, mr. tipton, is recognized for five minutes. >> thank you, madam chair and appreciate you being here today. i want to come at this from a little different angle. i

mr. solomon and go this way. you each have six seconds. >> i -- i -- i think we're working to do the best we can in our organization i think the market does hold you accountable over time. >> they didn't for wells or equifax. >> i can't really comment on wells or equifax >> mr. scharf. >> i would just echo that we continue to try and do the best job we can i will say from our perspective, the regulators -- >> let me interrupt this because you know, one of the most powerful means of enforcement of behavior is group affirmation or condemnation. and i realize that you all interact with the heads of these other organizations, but you know what would help stand up and speak out, because what wells did and continued to do is unacceptable and you ought to call it out publicly for what it is. with that, i yield back my time. >> the gentleman from colorado, mr. tipton, is recognized for five minutes >> thank you, madam chair and appreciate you being here today. i want to come at this from a little different angle i repres

mr. solomon and go this way? you each have six seconds. we are working to do the best we can and our organization. the market does hold you accountable over time. rep. heck: they do not for wells fargo or equifax. >> i cannot comment on wells or equifax. >> i would echo that. we continue to try to do the best job weekend. rep. heck: let me interrupt. one of the most powerful means isenforcement of behavior group affirmation or condemnation. i realize you all interact with the heads of these other organizations, but you know what would help. stand up and speak out? and wells fargo did continue to do is unacceptable and you want to call it out publicly for what it is. i yield back my time. rep. waters: the gentleman from colorado is recognized for five minutes. >> thank you madam chair, appreciate you being here today. i want to come at this from a different angle. i represent rural colorado. part of the challenge we have in those rural areas is when the economy goes bad, we are typically one of the first areas to suffer as the economy start

mr. solomon, mr. solomon, can you discuss how your institution supports access to capital for consumers to buy a home, start a business or send their kids to college? >> sure, we generally have not been a consumer bank, but we just started very, very small consumer business at this point in time we take deposits and we make small unsecured loans for consumers that amount from 3500 to $45,000 it is a very, very small business we're not currently in the business where we make mortgages for consumers. but we might at some point in the future. >> mr. moynihan, could you hanser thhans answer that question how are you helpinging my constituents to get capital to buy a home and start a business and send their kids to college >> sure, we provide mortgage loans to 3% to 4% of the american population. we do it directly. last year $50 billion in mortgage loans recently we recognized that there were time to save for a down payment has become longer under the current rules and regulations so we built a $5 billion p

mr. solomon, same question. mr. solomon: we have a process of vetting -- >> any that you found objectionable? : we do not deal and we do not do business with companies that manufacture assault weapons are high fastening magazines. >> ok, mr. shark. clients --our clients, we do suitability interviews. >> are there any that you found ejection about? found objectionable? >> no. not as an industry. >> we have a franchise committee which evaluates different transactions to companies. >> have you found any you do not want to do business with? >> we have restricted activities to those having retail sales of automatic and semiautomatic weapons. you are the only one left here. >> we serve investors -- >> i understand. any investors you refuse? >> no. >> thank you, madam chairman. the gentleman from chairrk who is also the for the subcommittee on consumer protection and financial institutions is recognized. >> thank you. let me also just emphasize another reason we are here is the lack of trust the american people, the average

mr. solomon, why did goldman sachs initially choose to open a crypto trading desk? >> the first article wasn't correct. like others, we're watching and exploring and doing work in trying to understand crypto currency market as it develops certa other than that, we never had plans to open any crypto currency trading desk. we might at some point in time, but no question when you're dealing with crypto currency, it's a new earea and a lot of issues and unclear and it's not clear whether or not in the long run as a currency, you know, those technologies will work and be viable. >> clearly and certainly some of those tokens that are issued are awaiting definition as to what will be a security, what is not a security, what is the appropriate trading platform a number of issues that our bill goes into it and frankly a number of things that will be need to be addressed afterward you called crypto currencies, quote, not a real thing. but this year your firm unveiled jpm coin and stated, quote, we're supportive of crypto currencies as well as they're properly controlled and r

mr. solomon. >> we eliminated a handful of businesses since the crisis. >> or 444 million americans that own a business in a loan crisis. 1.56 trillion in student loan debt last month the committee received testimony last tier 1 million students default it which is on top of the 1 million borrowers who defaulted the year before. what are you doing to help with student loan debt? who would like to answer first? >> we stopped making student loans in 2007. >> weighted student lending in 2009. >> when the government took over student lending we stopped getting student lending. >> what about small business. you mentioned you are making loans to small businesses. they can't plug-in and you shoved it off to the community development organizations. can say that you've made an important business line lending to small businesses? >> as i said earlier he made $8 billion in loans and we have operating accounts for 9 million small businesses. >> thank you. my time is up. the gentleman from north carolina is recognized for five minutes. >> does bank of america lend to small businesses? >> we made 8 bi

mr. solomon for a good research report from goldman sachs on this issue. i've heard my colleagues on both sides of the aisle condemn stock buybacks. i'd like to say that capital allocation is a fundamental responsibility of boards of directors. i looked at the statistics. r& d spending among the fortune 500 is up and on par with where it's been for 30 years. point two, we talk about shareholders like they're some unknown group of people. american citizens, labor unions, pension plans, and 401(k) plans, and your report shows no correlation with ceos manipulating their compensation using stock buybacks. i yield back. >> thank you. the gentleman from massachusetts, mr. lynch, is recognized for five minutes. >> thank you, madam chair. i want to follow up on a question that was asked probably several hours ago by the gentleman from indiana. you each responded to his question about systemic risk and the things that keep you up at night. you all mentioned that shadow banking in some form was a source of risk, although a number of you said it's not systemic yet. i

al-jazeera has also reached out for comment on this report about the prom peo pressure allegedly to make mr solomon give up this or all qahtani as a close political advisor. no it was previously known as revolution city but today's not a city is now one of the poorest and most neglected districts of iraq's capital namely hoffler baghdad's eight million people live there and most of them are muslims and reports they blame politicians for all religions for failing to improve their lives. fatima and our ten year old twins they were just four when their father died from a stroke their mother mona is left to provide for them and three siblings. they rent their home which was built illegally for about ninety dollars a month that we do it doesn't have a job and barely leaves her home because of her conservative religious beliefs. she receives no help from the government so she relies on charity handouts. then i only ask for help to buy me a house to live in i live in rental i have no income and i can't leave my neighborhood and live away i depend on charity from other people in the neighborhood because sh

human arming group arbitrary detention oh i don't actually have to go on which are the opinion that mr solomon in effect in order to really change ecuador and this. you know why one key point here is you know with the u.s. government. traditionary actually acknowledge that it's already spent seven years it's hard to change and you know taking that into account. you know if you instructed us. which is more than the five years you know that it's you turks are. now back in two thousand and fifteen julian songe was asked a question about whether he would trade places with edward snowden he said he would quite clearly do you think he would have been in a better position now if he had asked russia for asylum. i mean the two choices are are extremely different mr snow actually oh. a whistleblower falls into you know classic definition of a whistleblower mr staunch is is a journalist. and it's worth whistleblowers in the past in particular chelsea fan it. and i have a very difficult question because you know mr snowden i transited through moscow. not intended to stay in moscow but it's passport been r

mr. solomon, i believe it was your institution that became famous for the policy that had the risk officer having a 51% vote in any major decision. i think i have that correct. how many of you have that as a policy, if the risk person in the room says no, it will not happen? how many of you currently have that as a policy? mr. moynihan is indicating yes. not a formal policy, congressman, but it would be a most unusual situation for the operating committee or the board to go against the risk committees recommendation. >> we don't have a policy like that, but it to the viewer very senior people disagreed, it would be bounced to me. >> same. if there was a significant disagreement, the decision would come to me. that is why you have a risk officer, to play that disinterested person and make that decision. >> i think the other thing that is significant is whether you pay those risk officers the same as the highest paid salaries. is that also a general policy, that they are not second-class citizens? >> you are talking about empowerment of control in these organizations. that is paramount. in c

has also reached out for comment on this report about the problem pale pressure allegedly to make mr solomon give up this or all qahtani as a close political advisor. u.s. military official has said its armed forces are ready to move into venezuela admiral craig heads the u.s. southern command and whole foreign policy magazine and invention may be needed if sanctions fail to force president nicolas maduro from power are latin american or was the new man has more from porto and northern venezuela. what does the sinister star wars character darth vader and u.s. economic sanctions against venezuela have in common. everything according to u.s. national security advisor john bolton he likens the sanctions to darth vader choking his enemy's throat that he says is what we're going to do to the regime economically. and the economic crisis already existed long before the sanctions but the u.s. strategy is designed to provoke the total collapse of what it sees as the enemy. the u.s. treasury department has designated not just venezuela's vital oil industry but its entire banking sector as a target of

al-jazeera has also reached out for comment on this report about the prom peo pressure allegedly to make mr solomon give up this or all qahtani as a close political advisor iran is officially protesting the u.s. decision to designate the islamic revolutionary guard corps as a terrorist group in a letter to the united nations its foreign minister said the move could have dangerous consequences. the reports in the capital tehran. was flag burning in death chants a usual friday protest in to her but this time one name featured more prominently than usual. it would have seemed impossible but attacking the islamist revolutionary guard corps one of iran's most important institutions has made u.s. president donald trump even more unpopular just days after the u.s. decision to designate the entire i.r.g.c. as a foreign terrorist organization thousands of iranians came out to support their troops supposedly have the i.r.g.c. is the core of the country of course our army is good to the i.r.g.c. is more popular at the base had he handed i've something to tell trump in his administration you have designated th

has also reached out for comment on this report about the prompt jail pressure allegedly to make mr solomon give up this role qahtani as a close political advisor when we come back let's just take you through the stories we'll cover in the next half hour as a new president are the ones governing party is challenging the initial results of turkey's municipal election which the main opposition says it's won. and in the sports news one of the world's fastest horses is set to race for the last time details with foreign in about twenty six. wiki leaks co-founder julian i saw as could face a renewed investigation into an allegation of rape in sweden let's cross to london where maryam namazie is standing by with more. swedish prosecutors are saying that they are now examining the case this at the request of the alleged victim's lawyer after the u.n. human rights office. to ensure that a songe gets a fair trial the forty seven year old was arrested in london on thursday when ecuador revoked his diplomatic asylum after seven years in its embassy he could now be extradited to the u.s. over his allege

has also reached out for comment on this report about the problem pale pressure allegedly to make mr solomon give up this or how tani as a close political advisor. at least five civilians have been killed in fighting on the outskirts of libya's capital rockets and shells fired by forces loyal to jennifer have to hit a residential area west of tripoli more than fifty people have been killed in fighting over the past week and thousands more have been displaced meanwhile u.s. media is reporting that saudi arabia has promised tens of millions of dollars to help a fast as operation to take the capital a wall street journal says the offer came during several visits by half that to riyadh days before the military campaign began. from the arab center of washington says riyadh wants to play a role in libya there was an increase in support clearly but that implies a change in the political role i clearly i think saudi arabia wanted to its participation in the conflict in libya and that that probably contributed to the visit on march twenty seventh general to the kingdom and his meeting with both the k

also reached out for comment on this report about the prompt a zero pressure allegedly to make mr solomon give up this or all qahtani as a close political advisor u.s. president donald trump says he is now considering bussing illegal migrants to cities controlled by his political opponents in a tweet sent a short time ago he essentially confirmed reports that appeared in u.s. media outlets a few hours earlier trump has long criticized so-called sanctuary cities such as new york and san francisco where local authorities don't cooperate with federal immigration and customs agents an official has more now from washington. while the proposal was fuss raised in november last year it was brought forward by the white house and put in front of the department of homeland security but it was rejected at that point for a number of reasons not least the safety of transporting people from the border to somewhere like san francisco or beyond it was killed as well on the idea of budget because it would cost a great deal of money. to transfer people and also they said look this could cause a p.r. problem

mr. solomon i said yes we saw you on sean hannity show we can't tell you much because most what we knowons classified but we'll tell you this if you keep digging you will find out that the united states intelligence community would use for a political opposition research project and we are deeply concerned. and i said why are you concerned? we need these tools. things like nsa to catch bad guys we misuse for political dirty trickswe with won't have tools when the next terrorist attack or next showed up in town. we need you to find out whapgd and that's all they told me. about 11:30 and finished conversation, i raid sarah this is about 2:00 in the morning she was responded right back but hao we got understanding that this was bigger than just unmasking scandal. >> it was huge. >> how long ago was this? >> with that 2,000 -- march of 2017 yeah march 2017 because we had been working on this story. i01 mean we were getting tipped off, we saw what was happening to general flynn lieutenant general mike flynn i remember -- being approached by let's say federal law enforcement officers who had to

also reached out for comment on this report about the prompt a zero pressure allegedly to make mr solomongive up this or what tonnie as a close political advisor. at least five civilians have been killed in fighting on the outskirts of libya's capital rockets and shells fired by forces loyal to general haifa have to hit a residential area west of tripoli more than fifty people have been killed in the fighting over the past week and thousands more have been displaced meanwhile u.s. media is reporting that saudi arabia has promised tens of millions of dollars to help pay for half dozen operation to take the capitol hill street journal says the offer came during several visits by half that to riyadh days before the military campaign started. shun from the arab center of washington says that riyadh wants to play a role in libya there was an increase in support clearly but that implies a change in the political role i clearly i think saudi arabia wanted to its participation in the conflict in libya and that that probably contributed to the visit on march twenty seventh general to the kingdom a

also reached out for comment on this report about the prompt pale pressure allegedly to make mr mohammed and solomon give up this role hatami as a close political advisor at least five civilians have been killed during fighting on the outskirts of the libyan capital rockets and shells fired by forces loyal to the warlord who have to hit a residential area west of tripoli more than fifty people have been killed in fighting over the past week thousands more have been displaced us media is reporting the days before half sort of launched his offensive towards the capital saudi arabia promised tens of millions of dollars to help pay for the operation according to the wall street journal the offer came during several visits by have to up to riyadh days before the military campaign began on april fourth john shand is the executive director of the arab center of washington he joins us on skype welcome back to al-jazeera is this an offer of money or did cash actually change hands do we think. actually didn't i mean there was an increase in support clearly but that implies a change in the political role i cle

mr. solomon >> yes, we are >> i appreciate that there had been a lot of discussion about whether you were too big to manage and whether you were really stable and whether you were properly capitalized and i think the numbers do speak for themselves on that. i want to quickly move to brexit because this is -- this is of some real significance we're two days away from a hard exit the london is -- is the center of the derivatives market. there's nearly 2 billion contracts that were written there in 2018 alone. hundreds of trillions of dollars that flow through there. the uk has been dominant in the space and because of the regulatory regime imposed by the bank of england and the financial conduct authority, in fact, every globally active financial firm maintains a presence in london i assume you all do. does anybody not everybody does okay well, the chairman giancarlo highlighted he has a quote here that, "london is and will remain a global center for derivatives trading and clearing" and he also added that the package of measures will "provide a bridge over brexit through a durable regulato

also reached out for comment on this report about the prom peo pressure allegedly to make mr mohammed bin solomonic give up this are all qahtani as a close political advisor at least five civilians have been killed during fighting on the outskirts of the libyan capital rockets and shells fired by forces loyal to the warlord telephone have to hit a residential area west of tripoli fifty people have been killed in fighting over the past week thousands more have been displaced well fighting between how some sources and those of the u.n. backs governments have been going on for more than a week both sides say they've made strategic gains in the past twenty four hours. what head is live for us in tripoli we're also talking about the strikes get us right up to speed on that quite significant new development. well i have to as warplanes enter a strike today in several areas several locations are controlled by the forces loyal to the tripoli with the government national accord but not only in tripoli in the western coastal city of aswat are have to plain targeted a location there injuring two civilians tha

mr. solomon, just to pick on you, talking hedge funds, private equity, what else are we talking right?> there is significant credit formation. people talk about leveraged lending. sometimes they think about leveraged lending on banks of large institutions here but there is more and more direct lending being done in separate vehicles not regulated, not scrutinized. at the moment i don't think it is systemic. it growing and obscured. this is something over time the cycle continues have closer look at. >> should this committee, many of you mentioned shadow banking, should this committee take a hard look moving these entities that are doing shadow lending into a regulated environment? >> i personally think that there should be a hard lack and a better understanding what is there, potentially if it grows, continues to grow, this is something to consider but certainly needs a harder look at transparency. >> thank you. i yield back balance my time. david: finally getting to serious questions in the banking committee. shadow lending, shadow banking that occurring here. that could be something

mr. solomon is whittling down everything that was a money-maker years ago and he's getting to a firm whichity that the rest banks seem to be goldman sachs today is not goldman sachs that you remember it to be, the billions remembers it to be. >> the show. >> the show. >> i had to bring that up. >> right, but the old -- you're talking about when we used to talk about goldman sachs in the context of morgan stanley, and they are almost two different firms. goldman sachs is moving more towards morgan stanley. >> more back to the old days of goldman sachs. they are the lead underwriters for all of these major ipos that we're talking about every single day. >> to answer your question, i understand why the stock is trading higher, but in the broad scope of things, i don't understand why banks are trading at premium -- well, premium mulls pat. you say the multiples are ridiculously cheap they are all utilities look at j.p. morgan, for example, tangible book and jpmorgan came out at $-5-57.5. you're close to one times tangible book at jpm they probably deserve it, but how much higher are they going

mr. solomon? i can't hear you. >> i apologize.e eliminated a handful of businesses since the crisis. >> thank you. today there are more than 44 million americans that owe, student loan crisis is. 1.56 trillion in student loan debt. s that month this committee received testimony that last year 1 million student loan borrowers defaulted which is on top of the one million borrowers who defaulted the year before. what are you guys doing to help us with the student loan debt? who would like to answer first? mr. monihan? big bank. >> we stopped making student loans in 2007 or so. >> so you don't do it anymore? >> mr. corbyn? >> we exited student lending in 2009. >> mr. dimon? >> when the government took over student lending in 2010, we stopped doing all student lenting. >> thank you. what about small business. you mentioned that you were making loans to small businesses. small business operators can't walk into bank get account. you shoved that off to community development organizations. who can say that you have made an important busin

mr zarif he said that i'm quoting we have b. team actively acting against us benjamin netanyahu saudi crown prince mohammed bin solomon and the united arab emirates crown prince mohammed bin diet well been solomon so i think it's a b. team or b s characters make it a b. movie without plan b. that's my descriptor that was but i think that's perfect i believe that i'm going to the right at that to put that on my refrigerator and i've got to let me go back to london and here it seems to me we're truly going to have an alexander is in there you're just going to have a huge black market of oil and the prices are going to be very high and the rain ians will have been experiencing these type of sanctions for a long time they've survived it and people will actually rally around their leaders and this is going to be a big flop when i worry about is it when it is a big flop what the us will do then because they are determined determined to have four. regime change and around and they don't have the tools to do it and what they're going to do is probably blow up the oil markets in the process and you know what it's a lose lose lose lose lose f