how would you work with the occ and fdic to make those changes? chairman powell: i agree with you, sir, that leverage ratio can deter banks from engaging in low risk wholesale activities, particularly the custody banks. we've looked carefully at how to provide relief. our preference for the way to do that is to recalibrate the ratio andupplemental the custody banks would feel significant relief because they have the smallest surcharges. that is our preferred way to do that. >> following up on that, as you know, with these considered changes to the ratio, they only cover the -- do you believe changes to the possible ratios are necessary? chairman powell: the regular supplemental leverage ratio based on my conversations with other institutions, including custody banks, is not particularly binding for them. we chose to make this enhancement. we got the calibration a little bit wrong. our plan is to roll that back. >> cbo recently provided a cost estimate for the implementation of hr 2121. the cbo often relies upon the executive branch for such estima

multifamily, my god, corporate c&i growth was great, but it's slowed the occ particularly is telling the banks that they want to see those numbers come down. they look at the gain in the collateral and it scares them. i think there's some valid concern there. >> two quick things before i let you go do you own any of the big banks personally >> no. i own fintech. i own square for a while i own paypal i own nrz. the conference call by mike nearenberg the other day was interesting. >> what kind of statement is that the guy that i want on to talk about the big banks because he knows them as well if not better than anybody, comes on and says i don't own any of them, what am i supposed to think? >> that's not the sweet spot for me the best returns in the industry are community banks, growth, great equity returns then if i were going to go long any of them after a selloff, going back to pete's comment, i would look at the pncs i would rather own a bank that can grow the big guys aren't allowed to grow there was a joke at wells fargo, oh, they won't let us grow >> do you think the fed went t

you know part of the strength of our police department is the fact strength of the dpa, formerly the occ. it's unacceptable to have any case not meet the statute, for the attorneys on this panel, they know that it's malpractice, and so i'm glad you're cleaning up that mess, and it's very important that that's -- you know, that that takes place. i even heard from a member of the san francisco police department that the time had passed, and they wanted to act on something, and they couldn't. so keep up the great work. >> thank you. i will continue. >> anything further for director henderson. hearing none -- >> thank you. >> dr. marshall. >> this is beyond the scope of the report. >> that's fine. >> but how is the communication going between the dpa and the department? that's something you can't comment on now, certainly in the future, but your thoughts on that. >> well, they're right there. >> no one has ever said that. >> exactly, exactly. no, i think the communications are -- have gone well. i certainly don't feel any restriction in terms of reaching out across the board, both in terms o

i wonder, do you support the treasury's department's recommendation and how will you work with the occ and fdic to make the changes >> i agree with you, sir, that the leverage ratio can deter banks and -- from engaging in low risk wholesale activities, particularly the custody banks and so we looked carefully for some time now at how to provide relief our preference is recalibrate the ratio. and the custody bank was feel significant relief because they have the smallest surcharges so that is our preferred way to do that. >> following up on that, as you know, with the considered changes to the leverage ratio, they only cover the g sibs do you believe the leverage ratios are only necessary for the g sibs or would you support changes to the larger supplementary leverage ratio >> the regular supplementary leverage ratio based on my conversations with financial institutions including the custody banks is not particularly binding for them. so our plan is to roll that back. >> one last thing. cbo recently provided a cost estimate for the implement of hr 2121 they rely on input from the execut

the regular state regulators, the occ, they haven't acted yesterday. certainly with the timing given they didn't find anything new, the timing you would also say is a big blow to the company who have continued to talk about the changes they've already made and yet the fed thinks it's necessary. >> and is this a janet yellen i'm leaving and i'm going to do this now, by the way, i used to be in san francisco, because i don't believe that jay powell will do anything like this >> again, i think the timing one has to look at and say it's not just a coincidence it was on her last day the feds say the actual day it was signed by 16 board members of wells fargo have to sign the consent order. but sources at the company the first day ever heard that the fed was looking at this is when janet yellen mentioned this in a public hearing in september. they then heard nothing about it until the last couple of weeks so whether it was signed in the final day or not, it was going to come in the final weeks so something driven by the change in the fed. you can also say th

how will you work with the occ and fdic to make those changes? >> i agree with you, sir, that the leverage ratio can deter banks from engaging in low-risk and so we've looked carefully for some time now at how to provide relief. our preference is to recalibrate and custody banks would feel significant relief because they have the smallest surcharges. that is our preferred way to do that. >> following up on that, as you know, with considered changes to the ratio, they only cover the g sibs. do you believe changes are only necessary for the gsibs or would you support changes to the larger supplementary leverage ratio? >> it's not particularly binding for them, particularly as it relates to custody banks. we chose to make this enhancement and i think we got the cal abrasion a little bit wrong and so our plans are to roll that back. >> cbo recently provided a cost estimate for implementation of hr 2121. they often rely on input from the executive branch for such estimates. i wonder if you could share that with us. would you be willing to work with us