mr. whalen, please. >> mr. chairman, senator bunting, thank you for inviting me to be with to you today. i'm going to summarize a couple key parts. i will be happy to submit that. >> submit it to us. >> i agree with many of the things that have been sunny day previous testimony and imencouraged by what i hear. happy you will take this as ananich session today because it's important that the congress build a complete public record on this issue and that will take some time. you have heard a lot about centralized clearing. i don't think anybody is opposed to that. it's part of the evolution of markets. whenever financial markets start the first few people figure out an opportunity never want standardation. they don't want people to know what they're doing because they're harvesting the biggest returns you'll ever see in that new market and over time as the crowd gets bigger they awe agree that standardization and consistency is important for the participants. >>> the -- this is how all our markets have formed. cl

mr. whalen. >> i agree with in other speakers. segregation of collateral is something we need. the dealers mansion themselves tend to rely on overarching agreements and treaties to deal with collateral and exposure back and forth. if you mo of an exchange model everybody it treated the same and you have different tiers of collateral requirements but the point is there's a third party who holds the money. you don't have the dealer holding the collateral. you have the clearinghouse or a trust company that is separate from the dealer. and i think that's an important distinction. >> this is for anybody. what economic value outweighs the social cost of somebody being able to buy insurance in the form of swaps for asset that it do not own? turn it oven, please. >> ranking member bunning, this is really very interesting, this issue, in terms of credit default swaps and the incentives so that the state insurance people have argued, well, gee, you should not be able to buy credit default swaps unless you have an insurance interest. all right? well, interestingly, the problems may be mor

mr. whalen is a proud resident of hudson, new york.hey provide consulting services for audit tore, regular laters and he consults with global companies on a variety of financial and regulatory issues and the regional director of the professional risk managers international association and is a board adviser to a global business security risk in asia. -- huh, hu, would you please begin. >> mr. chairman and distinguished members, thank you for this opportunity. i teach at the university of texas law school and my testimony reflects my view as an academic. i agreed to be working at the securities & exchange commission. i emphasize that i'm currently a full-time academic, have been so for over two decades and after this forthcoming government service will return to my normal academic duties but i will say tied does not reflect the views of the sec and has not been discussed with or reviewed by the sec. i ask that my written testimony be include in the record. this is a seminal time for the regulation of over-the-counter derivatives. my und

mr. whalen, listening to your testimony from a sterile standpoint and saying if it's that kind of risk maybe it should that's probably okay unless that's the only regional airline in town. and when that one goes away, guess what? air transportation for western nebraska goes away. >> i don't know any airlines that can't hedge their fuel costs -- >> i'm not talking about fuel costs but you know what i'm getting at here. there are always unintended consequences and i just want to understand. if we are going to put a lot of little guys out of business tell me that. >> here's the thing i want your little guy to have the same facility of pricing a contract as the dealer. how do we do that? that goes to transparency but if i have transparency of an instrument that's still opaque even after of legislated transparency than i have a problem. >> and the tools that we have been given i think in the end is when to be the capitol requirement. that's the alternate protection, and we, when you talk about what we require, treasurys, to me like you're talking about cash. you're probably not going to take some

mr. chaffetz: america lost one of its quiet, humble heroes on friday. major george e. whalen, utah's sole surviving world war ii medal of honor recipient. he was at the battle of iwo jima. he refused to leave the battlefield. he saved countless lives through his heroic efforts despite his own injuries. the selfless act typifies the men and women of the greatest generation. unfortunately, we are losing these heroes. he received the medal of honor from president harry truman in 1945 in recognition of his heroism during the tide turning battle. he served in korea, vietnam and was a 14-year employee of the v.a. in 2004 congress named the v.a. facility in utah. the v.a. said this in his passing, he truly exemple flies the commitment to service and love of his country. the people of utah, this hospital and the veterans he tirelessly served have lost a remarkable man, end quote. indeed they have, we all have. thank you, madam speaker. i yield back the balance of my time. the speaker pro tempore: for what purpose does the gentleman from texas rise? >> to address the house for one min