the occ released advance notice of proposed rulemaking to modernize the community reinvestment act or cra. the fed and the fdic did not join that release. the contraled to see lori's and said if he could not reach agreement with your agencies the occ would go on its own with cra reform. with that be a good outcome? told different regimes lead .ash a minute on diversity i believe diversity in the federal reserve's leadership including at the reserve banks is crucial because it is hard to stay committed when the leadership lacks an understanding of these communities it comes from experience. i and so many on this side of the aisle have pushed to diversify to more closely represent the american public. directors areard 74%banking or business, white and 62% male. they also cite that in 2013, 12 of the 105 or directors were african-american. that number has increased to 22 out of 108 today. this is an improvement but it still does not look good. federal reserve governor brainard recently spoke about increasing diversity efforts at conference.ander right now even before search is how is the

proposal >> i wouldn't want to comment on the occ on that proposal we haven't changed our policy. >> on the merger review, is it correct that about 97% of all mergers are approve and approximate approximate approximately 450 such mergers have been approved do you expect that to rise also? >> may i respond >> yes, you may. >> i have to look at the numbers. many work emergenmergers are wi. people just withdraw it because they can see it's not going to get through. there's a fair amount of that. it's more than 3%. >> do they withdraw because of cra? >> yes among other things. >> thank you the gentleman from arkansas is recognized for fooi minuive min. >> welcome back. thank you for your steady hand on the tiller of monetary policy we're grateful for the time you spend on hill answering our questions. i want to follow up on my friend from kentucky. the line of questioning on the balance sheet and looking for some detail as you look at the normalization process. i noted the balance sheet was down about $368 million january to january about 9% reduction. if you think about the size of the

. >> blatant hip occ crease of this chief reasons americans feel so divided. >> the president is expected to renew his call for a wall along the southern border. >> he is as committed to today as he has been to get real border security that includes a wall. he will make that case tonight. >> congress is working on a bill to secure the border, lawmakers face another government shutdown if they cannot resolve differences by february 15th. >> they get a strong bipartisan agreement. and we have to get it done by the end of this week because you have to get the paperwork all done and filed. >> in addition to border security, tout the economy, talk about terrorists and international trade and call for a strong military. natalie brand, cbs news, capitol hill. >>> former georgia gubinatorial candidate stacey abrams will provide the democratic response immediately following the president's speech and can you watch it all starting at 6:00 right here on kpix 5. >>> just as the russia probe appears to be wrapping up a new investigation could cause headaches for the president. federal prosecutors are

proposed cra reforms by the summer but he also indicated that if you were not all able to agree, the occose the reforms on its own this is counter to statements made recently by governor brainerd, when she stated that federal regulators should speak with one voice on cra. what is your view? >> i think, ideally, we would like to have a unified view. it would be better to have one agreed upon framework for cra. that's obviously the best outcome and we're going to be working toward that, but i would to add, though, that we're very committed to the mission of cra, and you know, we're looking to make it more effective >> should there be a joint rule making and do you believe the fed will ultimately sign on to the occ's proposal >> we'll have to see i think it would be ideal for the three regulators to get together and we're working, you know, with the other two agencies on that i think the goal is to get to a joint answer >> i yield back. >> the gentlemen from oklahoma is recognized for five minutes, mr. lucas. >> thank you, chairwoman chairman powell, thank you for being here today and i bel

the pfizer example it reminded me of wells fargo that had an ongoing dialogue with the fed and the occ about asking risk management systems which is how it will find and prevent problems they kept going back and forth again and again, submit, extend a deadline, we will give you language that will make you realize you need to resubmit the risk framework. this has gone on and on the risk framework was still not approved many years later so it's not the same but how much give-and-take is there, they finally had an unprecedented enforcement action and showed its strength on janet yellen's last day. had to give regulators credit, it's how long it takes, what happens in the amount of the fine that helps us understand the context around it. >> so, i had a conversation about a week ago with the u.s. attorney for the southern district of new york, he probably thought this was a private conversation, but in the confidence of the c-span broadcast, i will relay it. , he was complaining that he was receiving fewer criminal referrals from the sec he than in prior years and by the way, both he and i

the bank made it very clear that these are old issues and nothing is new, the same happened when the occ controlled the currency and the consumer financial protection bureau had a settlement with the bank for $1 billion. nothing is new, these are old legacy problems. i did make a new cheat sheet of problems in 2017 and 18 and i'm constantly wondering, are these old problems, employees added social security numbers and other financial information when they were doing anti-money laundering controls and checks, we heard about a regulatory warning to the bank about technology oversight for more than two dozen open regulatory warnings in 2018. they are management problems that we wrote about in the investigation is adding the aml issues and foreign-exchange problems through 2017. so, i could keep going but that leads me to think how much is the culture changing? what is new and what is old and wire the scripted responses the same and as a journalist it makes me want to keep probing and asking questions. when they say they are taking the issue seriously, i just look at the facts . >> great. ju

as the change from snow to rain occ occurs, more snow out to the west. 3 to 6 inches or morehan that.anges over to almost entirely rain. but there could be a little period of freezing rain near i-81 tomorrow, late into the afternoon and evening. so, winter storm warnings are issued for allf theetro area. winter weather advisory down to our south. starting off this morning below freezing for most. 2 uppes to around 30. 42 with plenty of sunshine. there's the moisture inor new jersey and south carolina here. it wl be all-snow from lunchtime to the afternoon. and the change from snow to rain arrives in southern maryland first. two to four inches before it changes. could be steamo rain late ow and evening. this will all change to rain and end some time late thursday night into the early parts of thursday morning. there's a big range of possibilities. 2 to 4 inches around town. thel,merican mo far more aggressive on snow totals here. our sto team 4 forecast, we're not going to get a big acc accumulationth because o changeover to rain. what might have been a 6-8 inch snowfall for us, it cha

lisa: we've had warnings from the occ and federal reserve and regulators in europe.y all wrong? thomas: it might not understand all of the nuances of a clo structure. things likemost mortgages and autos and things like that, those securitizations are static pools. the initial loan to start with is what you get. how those loans workout is ultimately what determines your good or bad fortune. a clo typically has a five-year reinvestment period. it's loans make amortization payments should the collateral manager sell a loan, or if they loan defaults and recovers, the proceeds can be reinvested into new loans, and potentially in the secondary market. in 2008 and 2009 when there were forced sellers of loans from hedge funds and mutual funds redeeming, clo's able to take their payouts. they could be going on offense, buying when few other investors were buying loans. due diligenceour before hand. it's great to get your experience, thomas. let's get more breaking news. blue apron, it plummeted from its ipo price. it's all about food delivery and making a meal in a short amou

the rare circumstances where the fed it aeps in to interfere in merger might be undermined by the occ's proposal? chairman powell: i wouldn't want to comment on that proposal, but we have not changed our policy on cra and mergers. it is one of the things we look at. havee want companies to outstanding ratios, who are presenting merger applications. the merger review. is it correct that about 97% of all mergers are approved and over the past decade, approximately 450 such mergers have been approved -- do you expect that to rise even more so? >> the time has expired. chairman powell: may i respond? >> yes. chairman powell: i had to look at the numbers. many merger proposals are withdrawn when we raise questions about them. most often, you do not wind up turning down a proposal, people withdraw because of vacancy it will not be approved. it is way more than 3% i believe. >> do they withdraw because of cra? chairman powell: yes, among other things. they withdraw because they can see that this is going to take a long time, or probably will not be a successful effort. or for other reasons. bu

to us, we'll consider. >> well, i ask this question because it seems to me that particularly at the occave -- who has released a proposal without input from the fed or fdic contemflating sweeping changes to the implementation of the community reinvestment act in a speech last year, governor brainerd said the investment act was more important than ever she stressed that branches and deposit taking atms in ways that banks engage with the community. you also highlighted the importance of highlighting the cra and making sure they have access to financial services wherever they live can we get your commitment to build consensus among the fed governors before moving forward with plans to change implementation of the community reinvestment act >> oh, yes >> i think it's important that you do everything in your power to try, t to achieve a unanimou vote on this before you move forward. many of us find this an incredibly important part of our law and increasingly diminishing reality of financial institutions that somehow think that they do not really have to fully engage and implement the law an

i want to be sure that the federal reserve is not following the occ and deemphasizing its treatment of fair lending violations when it comes time to evaluate the proposed merger. what assurance can you give us at the federal reserve will treat these violations with the seriousness they deserve? >> we haven't changed our policy on that. we do consider it comes in under the law under convenience the needs of the community served peer that includes consumer appliance and fair lending records and the record of performance. those are all things we do consider when we get a merger application. >> when you are considering, can you give us a sense of what the federal reserve's review of this bank or any other bank community reinvestment act track record with compliance and fair lending laws will look like? >> we will look thoroughly at it, we will look at the rating, of course. i think it is sends factory now . banks that have satisfactory or less than satisfactory rating have a hard time . we will look at that and also consider public comments and a full range of information. any information

place where only arely does the majority get things exactly their own way, can lace where stability occ most people obviously think that. and in an era in which everybody wa gratification, if you are looking for instant perfection, or senate would not be a good place for you. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2019] >> the air force secretary talks the future of the air force. president trump's proposed space upcoming president's summit meeting with north korean leader kim jung un. at 6:00 p.m. day eastern on c-span. >> the c-span bus recently traveled to texas asking what does it mean to be american. means to be american is the opportunity you get. passionate about the things we can do and excited where we're here.in >> being american is so much more than a nationality. who we are as a people and what we represent. represents tates freedom and liberty to allow others to be so. when you are an american you up for other people and allow yourself to represent who you are and what you are and you never afraid to fight

the occ unilaterally released an advance notice of proposed rule making to modernize the community reinvestmenthe fed and the fdic did not join that release. i was troubled to see comptroller ode recently said if he could not reach agreement with your two agencies -- stuart: we were expecting a question from the chair of the financial services committee. we got a long statement dressed up as a question. we haven't got an answer yet from jay powell. i don't know whether he has time to answer it but we'll move on from here. the market is down 158 points and that we believe is because of mr. lighthizer, the trade representative, or the trade negotiator, he is appearing on capitol hill as well. he said it is too early to predict the outcome of the china trade talks. that was taken as a negative. the market is down 155 points. are you in agreement with this, jack hough? have i got analysis right or what am i missing? >> i think so, if you had to point a finger that is the place to point it right now. you can find a number of worries, right? i still think when you put it all together earnings growth