mr. stearns of florida. the chair will reduce to two minutes the time for any electronic vote after the first vote in this series. the unfinished business is the request for a recorded vote on the amendment offered by the gentlewoman from connecticut, ms. delauro, on which further proceedings were postponed and on which the noes prevailed by voice vote. the clerk will redesignate the amendment. the clerk: amendment offered by ms. delauro of connecticut. the chair: a recorded vote has been requested. those in support of the request for a recorded vote will rise and be counted. a sufficient number having risen, a recorded vote is ordered. members will record their votes by electronic device. [captioning made possible by the national captioning institute, inc., in cooperation with the united states house of representatives. any use of the closed-captioned coverage of the house proceedings for political or commercial purposes is expressly prohibited by the u.s. house of representatives.] the speaker pro tempore:

mr. stearns said. the patchwork of state laws, the different jurisdictions complicated your ability to respond, you didn't say that, is that what i heard? >> i responded to the issue about the notification obligation. >> right. >> there are some conflicting obligations there. >> sigh federal standard would be -- >> that would preempt the states would be extremely helpful. >> i just want to get the nature -- so, epsilon is a vendor for you. vendor for sony. so did the hacker go to epsilon? or sony to epsilon to get to the other? >> let me clarify. these are two completely separate breach events. so the activity at epsilon was completely unrelated to, as far as we know, what happened at sony. >> so you're not a vendor with epsilon. oh, ok. so the other customers -- oh, ok. a apologize. so your other customers, they came -- epsilon, they got to your system, and then through your system, were able to -- at least the companies you notified, verizon that was mentioned earlier, that's how that breach worked.

mr. stearns, for five minutes. mr. stearns: good morning, mr. speaker. in march of 2006 then senator obama was on the senate floor and this is what he said. quote, the fact that we are here today to debate raising america's debt limit is a sign of leadership failure. increasing america's debt weakens us domestically and internationally. leadership means the buck stops here. instead washington is shifting the burden of bad choices today on to the backs of our children and grandchildren. america has a debt problem and a failure of leadership. and america deserves better, end quote. but now, mr. speaker, a few short years later, president obama now takes the opposite approach. calling for an increase in the debt limit and threatening doom otherwise. president obama has failed to send to congress a budget that will realistically solve our nation's financial problems. he calls for plans that spend too much and borrows too much and taxes too much. when congress reasonably rejected his plan and proposed a budget with responsible cuts, he turned a political rhet

mr. stearns: good morning, mr. speaker. lost mountain hyper bollic statements and -- hyperbolic statements and cause of doom, if congress doesn't raise the debt ceiling is something our nation faces, the out-of-control spending that's become epidemic here in congress. no doubt a technical default in august surely would be problematic. but much worse would be the results if republicans cave to democrats and no significant funding reforms is implemented. today, my colleagues, 68 cents of every dollar spent on entitlement programs by the year 2025 the government will spend 100% of every dollar on revenues on entitlements. the united states is over $14 trillion in debt, and without spending cuts and the deficit and our national debt we will continue to grow. we must begin to rein in spending and bring about the fiscal changes to protect our children from this growing burden of debt. mr. speaker, importantly, markets understand the difference between a technical default in which investors may have to wait a short period of time

mr. stearns for two minutes. >> thank you, madam chairwoman. obviously as pointed out by yourself in the ranking member, mr. waxman, it's important we try to get a bipartisan support for this. when i was chairman of the subcommittee, introduced the data act in 2005, six years ago, established to protect unauthorized access to consumer data. this bill is cosponsored by both sides. when market outcome is reported on the full committee by unanimous consent. obviously i would've preferred he started with my bill, which has i think a bipartisan support product of a broad understanding of security issues and back in 2005. now are working with possibly a third of the different focus though, which could be good, that addresses the recent breaches have occurred and sounding apps on. we have to be concerned, not that we overreact based upon those two cases in both 2006 in 2009 commend bipartisan support for the data act. now weta act, a bill and concerned has very good points, but also may go too far in some other areas. obviously, i work with the subcomm

mr. stearns? >> thank you, mr. chairman. and thank you for holding this hearing.eiterate to my colleague to mr. hanson. we appreciate your service and your willingness to come here and to really be honest and read through your opening statement, you indicated that when you were discharged from the marine corps, you knew you healthy individual. but at the same time, you did anybody. and it was a feeling, i guess, in your own mind -- you said it in your opening statement that you felt indestructible. that because you were in the marine corps and yet you had served yet you were struggling. you suggested that perhaps everyone should realize that they should get some help and perhaps as an incentive to have compensation withheld. let me ask you this, do you think -- if you not talk about and talk about the military services, do you think the marine corps itself should have briefed you before you were discharged to say, look, it's not being less of marine if you realize you need help? and that somehow this feeling not in the marine corps but all the military, that you'r

considerable perception that if you are'soing to be bailed out as bear stearns was, that all investment banks or all financial institutions which mr. larger than bear stearns would be eentially bailed out. so when lehman brothers was not bailed out, the shock to the market was overwhelming. i don't think that this particular issue at this stage can be a shock. most everybody i know and indeed the markets themselves, there are a lot of technical indicators like credit default swaps and the like, which are -- it's not likely to have consequences that lehman brothers did. >> rose: bringing the questions back home, what's wrong with t american economicecovery? >> it's very simple. if you want to look at wre the numrs are this economy is n growi very fast. it's very sluggish. i know we're going to move into a double dip so, to speak but we're growing at a-- rate t is very simple. construction which has been every other recovery since 1949 has been extraordinary, positive and very supportive of the economy, has barely moved recently. the consequence-- . >> rose: because there's no new housing or commercial construction? >> no, basically

mr. gattuso, welcome. >> chairman stearns and members of the subcommittee, thank you for the opportunity to testify. four months ago the president issued an executive order instructing all executive branch agencies to review regulations in their book. next week and this morning our administrators initialed progress of the review of agencies this report was encouraging as agencies identify the potential of unnecessarily costly regulations. at the same time it proposed to constitute only a small step toward the rollback of red tape in the american economy. much more substantial reform is required. the burden of regulation steadily increased in the last three decades through republican and democratic administrations. during the present administration the rate of increase reached unprecedented levels. according to figures by the heritage foundation data provided by the accountability office, federal agencies got an unprecedented 43 major regulations in fiscal 2010 alone. .. themselves of at least $28 billion. in the same period, a handful of rule makings were completed that reduced burdens o

mr. sunstein. i would like to talk about the importance of regulations on protecting the economy and an advance of the hearing you wrote german upton and chairman stearns sharing our concerns of burdensome regulations and investment and chasing jobs overseas. i have an industrial base and i share that concern. although i am concerned about some of my republican colleagues that the regulations regardless hurt the economy, and let me give you an example of the years of deregulation brought the market to the point of collapse in 2008. the federal reserve had the authority to stop the practices that fueled thus the prime mortgage market and chairman greenspan refused to regulate the industry. the security exchange commission relaxed its that cattle will in 2000 for aligning investment banks to increase the ratio to 33 period one. the treasury proposed legislative efforts for the transparency and oversight concerning foot trading in energy derivatives. the office of thrift supervision and control remained for protecting home buyers from predatory lending and was the result in the fall of 2008 from the united states collapsed this economic crisis created a r

activities that bear stearns pursued, but will certainly be happy to get back to you and give you a specific answer. >> the gentleman's time has expired. the gentleman from arizona, mr. chic core? >> thank you. our favorite pop culture phrase is regulatory arbitrage. i want to start with mr. scott, the international, will you give me international, but also domestic examples. >> examples of regulatory arbitrage. we've had many in our history. when the united states imposed very tough requirements on banks in this country in the '70s, we spurred the creation of londonism international backing sign. when the united states in my view over regulateed it's equity capital markets and the committee has documented extensively, a lot of the business in the equity capital markets moved aboard. and particularly to london. again and the severity of this is once you get whole businesses moving some place, even if we readjust our policies or london gets more aggressive on theirs, people don't come back. they stay where they are. i think we've had a number of very important examples of regulatory arbitrage in our history of the financial system. >> madame chairman to the example,

mr. sunstein. i would like to talk about the importance of regulations on protecting the economy and an advance of the hearing you wrote german upton and chairman stearnsing our concerns of burdensome regulations and investment and chasing jobs overseas. i have an industrial base and i share that concern. although i am concerned about some of my republican colleagues that the regulations regardless hurt the economy, and let me give you an example of the years of deregulation brought the market to the point of collapse in 2008. the federal reserve had the authority to stop the practices that fueled thus the prime mortgage market and chairman greenspan refused to regulate the industry. the security exchange commission relaxed its that cattle will in 2000 for aligning investment banks to increase the ratio to 33 period one. the treasury proposed legislative efforts for the transparency and oversight concerning foot trading in energy derivatives. the office of thrift supervision and control remained for protecting home buyers from predatory lending and was the result in the fall of 2008 from the united states collapsed this economic crisis created a recess

mr. sunstein. i would like to talk about the importance of regulations on protecting the economy and an advance of the hearing you wrote german upton and chairman stearns sharing our concerns of burdensome regulations and investment and chasing jobs overseas. i have an industrial base and i share that concern. although i am concerned about some of my republican colleagues that the regulations regardless hurt the economy, and let me give you an example of the years of deregulation brought the market to the point of collapse in 2008. the federal reserve had the authority to stop the practices that fueled thus the prime mortgage market and chairman greenspan refused to regulate the industry. the security exchange commission relaxed its that cattle will in 2000 for aligning investment banks to increase the ratio to 33 period one. the treasury proposed legislative efforts for the transparency and oversight concerning foot trading in energy derivatives. the office of thrift supervision and control remained for protecting home buyers from predatory lending and was the result in the fall of 2008 from the united states collapsed this economic crisis created a r