you have gone from four regulators 23 prudential regulators in the proposal. you could go -- you have gone from four regulators to 3 prudential regulators in the proposal. you could bring in the holding company regulation to the prudential supervisor. there are advantages and disadvantages in each of those steps. at the end of the day, if you put everything all in one place, it would probably be too much. i think that is probably a bridge too far. but there are things you could do to simplify things for the future. i do not agree with sheila that this -- i do agree with sheila that this was not the single contributing factor to the crisis. >> and john, do you have a quick response to my question? >> among the many reasons that members of this committee would not be happy to see the summer recess come is that there will not have to hear me say for the third time in a row that each proposal will have some advantages and some disadvantages. as john and sheila have suggested, no one will sit down and write the system that we have now if they were starting from scr

. >>> this report is brought to you by prudential. >> whether serving in your hometown or on the othere of the world, use your talent and energy to make a better world. >> that's former first lady laura bush. she helped honor more than 100 teens from across the country for their outstanding volunteer work. >> it's all part of the annual prudential spirit of community awards. this year's top 10 national honorees each received $5,000 for their hard work and dedication. they were also given an additional $5,000 for a charity of their choice. >> when i think about your generation with all its abundant energy, talent and promise, you are the ones who stand out in my mind as the absolute cream of the crop. >> students were recognized for community service projects like preventing bullying in school, or sending prepaid phone cards to soldiers abroad. one student published a book with her classmates about being homeless. >> it's so inspiring hearing the stories that such incredible young people have done, and i know that i personally am inspired to do more great things in my community. >> prud

first, prudential supervision must be required for all systemically important institutions. is noteworthy that a number of firms that part of a crisis had not been subject to mandatory prevent -- prudential supervision of any sort. including -- improving this will maximize gains for financial stability. second, there must be as effective supervision of the company's debt and insurance depository, i gravitas distinct from the banks themselves. large organizations increasingly manage their businesses on an integrated basis with little regard for the corporate pounders that typically define the corporate world. there is need for columns scrutiny between the linkages between the banks and other delays within a holding company, not just big board contractual ties but also managerial, operational, and reputation all linkages. the premise of so-called functional regulation for supervision within each individual firm has been delighted by the experience of the financial crisis. -- has been belied by the spirits of the financial crisis. much of what needs to be done to improve our sy

is happening right now at the prudential center in the boston area.s. you're trying to get out of a building that is being evacuated, and you will probably need the elevator because it is 50 stories. but the power went out. the elevator is not working. they are trying to evacuate. the prudential center, the second-tallest building in boston, being evacuated because part of that has flooded. they believe the second floor may have been affected by a leak. there could be electrical problems, and that could spell tremendous danger for people. they are trying to get out. no one is hurt so far, and forced evacuation is going on now in boston's back bay area. you can see fire services and all the help called in to get people out. as i learn more, you will know it first. jane: time to get some financial help. you sent us york financial questions, and we have the answers. roseanne is joining us. it jumps right in. you close out your credit card accounts -- does the credit company still have the right to charge interest and penalties even though the account is

what i am not clear on is should these non-bank financial sector have some level of dated a prudential regulation? i have not seen anybody propose , one, is it needed, and two, whether that day-to-day prudential regulation, in terms of safety and soundness, would land? >> i think you have a day-to-day separation because -- with the non-banks, you do not have that. >> should they have some? >> i think, actually -- no, i don't think you need to go that far. i think the consumer abuses for the small entities for more of a significant driver, the lax underwriting, which then spilled over to the large institutions because of the credit situation that they created. but no, i don't think they do. if you have the ability to post credential requirements for systemic institutions or systemic practices, you don't need institutional -- >> the council for systemic and the consumer down here? >> i generally think it is a daunting challenge for the tens of hundreds of thousands of different financial providers to regulate them all around the safety and soundness, but i think the administration would

he worked for the prudential insurance co. in new york. they said, what is your heart is route? harlem. nobody wants to buy insurance up there. my dad did not like racism. he says they are black people, why would they not buy insurance? my dad went door-to-door and haarlems selling nicol policies. when my dad passed away, i talked about it on the tonight show. i talked to a woman who was 7 years old. when she was in little girl, there is a white man who came to their house. she said that he was the first white person that had ever had dinner in their house. it was the first white man that she had ever talked with. she said that she was very nice. was that your dad? she just cried. my dad really believe that stuff. if anybody said anything, he would deck you. he never liked that kind of talk. i was proud that he had such an influence on her life. my dad was the only white men who had never had dinner in their apartment. he would collect the nickle and give them the receipt for the insurance policy. >> did that have anything to do with the embrace you have had of african americans

prudential, their numbers came out yesterday. these numbers just a sign of things better than expected for this company. they've hiked their dividend, as well. still, that one is really leading things higher yesterday. good result from those. thomas cook is one where the numbers have come in slightly better on the front of things. but still, this comment in there that swine flu throughout 2009 could cause the company around $20 million pounds. that's dragging on their share price today. >> thanks for that, james. that's the view in london. over to paris where stephane, i wonder whether everybody who might be on hold today might spend a little more knowing you're out of recession. >> that's the price of this morning. they're starting to spend more in the second quarter. the household consumer spend sg one of the reasons why the gdp group faster than expected, 0.3% higher in the second quarter. we were expecting a contraction of 0.3%. also there's a stimulus package for the economy on the strong ex ports, stronger than expected. th

it is a radical overhaul of the prudential regime for insurers in the european union. objectives of namic art deepen integration in the eu entrants market, and hans policyholder protection, and of the international competitiveness of eu insurers and reinsurers. international communications amongst regulars can be difficult. in order to be able to get this moving we have to try and do something about this. it's difficult if we don't have a single regulation person to speak to. in fact, the u.s. i understand is the only country around the world not represented by a single national insurance regulator at the international association of insurance supervisors. and as work begins on third country equivalent in the context of solvency ii, we will be faced with the same question as we always face, who are we going to talk to, who speaks for the united states? and i believe for us this is a question about how we move on. that is up to you, but on maintaining the standards and enforcing the rules at european level, i can tell you that along with the regulators we have the europ

that not only reduces or eliminates taxpayers losses but it also includes prudential behavior. other important changes should be made. congress should close fannie mae and freddie mac and put any subsidy on the housing on the budget. and the same should be done to other credit market subsidies. the budget is a proper place for suidy. three priiples should be bourne in mind. unanticipated large changes can and will cause failures. our problem is to minimize the cost of failures to society. second, remember, that capitalism without failure is like religion without sin. it removes incentives for prudent behavior. third, those who rely on regulation to reduce risk should recall that this is the age of madoff. the fed, too, lacks a record of success in managing large risk to a financial system. the economy and the public. incentives for fraud, evasion and scircumvention. thank you. >> i thank the gentleman for his extension statement. [laughter] >> i'm going to recognize the members for questions and i'll just reserve my questions last because we have to be out at 5:00. there's anot

what i am not clear on is should these non-bank financial sector have some level of dated a prudential regulation? i have not seen anybody propose , one, is it needed, and two, whether that day-to-day prudential regulation, in terms of safety and soundness, would land? >> i think you have a day-to-day separation because -- with the non-banks, you do not have that. >> should they have some? >> i think, actually -- no, i don't think you need to go that far. i think the consumer abuses for the small entities for more of a significant driver, the lax underwriting, which then spilled over to the large institutions because of the credit situation that they created. but no, i don't think they do. if you have the ability to post credential requirements for systemic institutions or systemic practices, you don't need institutional -- >> the council for systemic and the consumer down here? >> i generally think it is a daunting challenge for the tens of hundreds of thousands of different financial providers to regulate them all around the safety and soundness, but i think the administration would

we particularly feel it is in our interest to make sure we want good strong -- prudential supervisionnd we don't want charter convergence to undermine the process. we would also have to work with you, and the center and i had a conversation about that, putting some of like that in the statute. >> i joined senator reid and that effort. >> senator addendas -- senator menendez, could i address the question? from one of the charter's acting being used as an example as an arbor try opportunity -- arbitrage opportunity is countrywide moving from the fed to regulation by ots did this was march of 2007. in doing so, countrywide brought approximately $92 billion of assets to the ots. we undertook extensive investigation by the fed, including fed bank of san francisco and others as well as state regulators within the fed's holding company jurisdiction. granted the charter to countrywide. one of the things that seemed to be lost in the discussion is that the three months or four months before countrywide came before ots, citibank took two historic thrift charters totaling $322 billion of assets

we particularly feel it is in our interest to make sure we want good strong -- prudential supervisionnd we don't want charter convergence to undermine the process. we would also have to work with you, and the center and i had a conversation about that, putting some of like that in the statute. >> i joined senator reid and that effort. >> senator addendas -- senator menendez, could i address the question? from one of the charter's acting being used as an example as an arbor try opportunity -- arbitrage opportunity is countrywide moving from the fed to regulation by ots did this was march of 2007. in doing so, countrywide brought approximately $92 billion of assets to the ots. we undertook extensive investigation by the fed, including fed bank of san francisco and others as well as state regulators within the fed's holding company jurisdiction. granted the charter to countrywide. one of the things that seemed to be lost in the discussion is that the three months or four months before countrywide came before ots, citibank took two historic thrift charters totaling $322 billion of assets

what i am not clear on is should these non-bank financial sector have some level of dated a prudential regulation? i have not seen anybody propose , one, is it needed, and two, whether that day-to-day prudential regulation, in terms of safety and soundness, would land? >> i think you have a day-to-day separation because -- with the non-banks, you do not have that. >> should they have some? >> i think, actually -- no, i don't think you need to go that far. i think the consumer abuses for the small entities for more of a significant driver, the lax underwriting, which then spilled over to the large institutions because of the credit situation that they created. but no, i don't think they do. if you have the ability to post credential requirements for systemic institutions or systemic practices, you don't need institutional -- >> the council for systemic and the consumer down here? >> i generally think it is a daunting challenge for the tens of hundreds of thousands of different financial providers to regulate them all around the safety and soundness, but i think the administration would

helped by vary yabl lifestyle on the prudential side.estment gains but the market is a little bit nervous about the run up we have seen in the financials. a little bit soft here today. we are seeing aig go enthusiasm but they're both weaking here today. alexander real estate, the reits are leading within the financial industry group level. they beat on the trailing quarter and their full-year also gets raised. occupancy, 94%. and their rent, also went higher. the hottest retailer in the world today? home shopping network. yeah. up 30%. only one estimate out there but they blew it out. stock at 11-month high. correction score, always a good business to be in, prison business. very strong. 7% higher. beat by two cents. all kinds of different metrics and how you calculate prison paying and state, et cetera, look positive. mark, back to you. >> thank you, matt nesto. even though several analysts this morning are raising their price targets on shares of vertex pharma, stock trading lower on the back of the company reporting a bigger than expe

prudential, second behind aig this morning. it is raised from out perform to market perform. that's a nice 30% move. weight watchers is losing a little this morning, down over a buck right now. about a 4% giveback. it's initiated at underweight at morgan stanley. they think it's headed down to $24 a share. lastly, one of the best performers in the russell 1,000 is tech data, without with a blowout quarter, second quarter coming in at 70 cents a share. analysts were looking for 44 cents. they beat on revenues as well, erin. they say european demand is softened but american's demand, some signs of stabilization. back to you. >> thank you, matt. >>> and as we said, seems a lot of people out there are very intrigued by the story of citi. at least whether bottom fishing might pan out there. prices have been significantly trashed in the past few months. just recently though made a rebound. it's one of the most clicked stocks in the website. time for another installment of "because you clicked." malking director of equity research of commercial bank. david, good to have you with sgl

do you agree with chairman bernanke that there are synergies between prudential supervision and consumer protection? and if so, do you believe that the obama administration's call for a separate consumer protection agency would undermine the soundness we have? >> as i sit in my introductory comments, there are multiple ways to organize or reorganize financial service regulation. many times you've got competing ideas each of which has merits and each of which has demerits. with respect to the consumer protection issue, the administration has made a proposal which i think a lot of people have sympathy with because when it focuses on consumer protection. we say we are going to give one agency the exclusive authority to regulate on consumer matters and thus they will be 100% devoted to doing that. what we have in the testimony is meant only to suggest that there are some things that would be lost by doing that as well as things the would be gained and what the chairman i think was suggesting yesterday is that there is a synergy or interaction between provincial regulation and consumer protec

let prudential be your rock for retirement. ♪ ♪ shine, shine, shine on [ male announcer ] your life hase than one dimension. ♪ oh, won't you shine, shine on? ♪ [ male announcer ] so should your beer... michelob ultra. with just 2.6 grams of carbs and 95 calories. it's not just a great-tasting choice... it's a smart one. live life to the ultra. jim: we were hoping to speak to tiger, but he went straight from the scorer's tent to the clubhouse. here are your final standing it is at the pga championship. it belongs to y.e. yang, the winner by three over tiger woods. tiger with that four-shot lead at the halfway point. two coming into the final round. he is overtaken. those players that made the cut in all four majors, ross fisher ends up with the best total. stenson and then westwood. time for the presentation. let's go down to bill. take it away. >> ladies and gentlemen, the winner of the 91st pga championship, y.e. yang. and with me here at the 18th the president of the pga of america, jim remy. the vice president of the pga of america, allen wronowski. from the legends of indiana golf c

any potential threat to the entire system, so-called macro prudential supervision. that's the president's proposal. as to the idea ever a global regulator, i think the prevailing view in the central banking community or in the financial community as a whole is that it's impractical to do that. there are too many differences nation to nation and that's a bridge too far. >> gentlemen, great conversation. we appreciate your insight. thanks very much. we'll see you soon. >> thank you for inviting me. >> i want to bring you breaking headlines from the "wall street journal" saying that anheuser-busch inbev executive says the company will raise beer prices in most of the u.s. not bringing us in terms of what actual price increase would be, but it's interesting in that a week ago starbucks said did was raising prices by as much as 30 cents on these drinks. apparently these companies think this is the right time in the stage of the recovery or maybe the consumer feels good enough about things that you can actually talk about raising prices. >> they're also feeling it on the

big names like allstate, metlife, and prudential are playing it. as well as smaller companies hoping to minimize risks and maximize profits with the help of high-performance computing. >> high performance computing is a method of running very fast computers in parallel. it just means that many more computations can get processed through the system a lot faster than it could in traditional means of computing. >> reporter: along with microsoft, ibm and hewlett-packard are some of the other companies bringing affordable, high-performance computing to the mainstream. paul vandermark works with risk management solutions, a company serving the insurance and reinsurance industry. he says high-performance computing has enabled his clients to make better business moves. >> with those performance improvements our clients can then run the models much more frequent liu. so instead of running their portfolio twice a year, say, or quarterly, they can move to running their portfolio monthly, reanalyzing it, weekly, even daily. and as a result making more timely d

the prudential center has been evacuated. local affiliates are reporting the second floor was flooded, which caused a power outage there. no reports of any injuries at this time. now, the 52nd floor building is the tallest in downtown boston. we, of course, will keep you updated. this power failure at the prudential center there in boston. >>> also, we've been following this case for a couple of days for you. reality tv contestant on the right is on the run, and now charged with the gruesome killing of his ex-wife a swimsuit model. the mutilated body of 28-year-old jasmine fiore was found stuffed in a suitcase in a trash bin near los angeles over the weekend. police say the prime suspect is her ex-husband, canadian ryan alexander jenkins. jenkins appeared on vh1's "megn wants a millionaire." police say her teeth and fingers had been removed presumably to make it harder for authorities to identify her. jen since kins is believed to h driven to washington state. police say he may have then take an boat to a peninsula on the bor

we particularly feel it is in our interest to make sure we want good strong -- prudential supervisiond we don't want charter convergence to undermine the process. we would also have to work with you, and the center and i had a conversation about that, putting some of like that in the statute. >> i joined senator reid and that effort. >> senator addendas -- senator menendez, could i address the question? from one of the charter's acting being used as an example as an arbor try opportunity -- arbitrage opportunity is countrywide moving from the fed to regulation by ots did this was march of 2007. in doing so, countrywide brought approximately $92 billion of assets to the ots. we undertook extensive investigation by the fed, including fed bank of san francisco and others as well as state regulators w@@@@@ @ r)@ @r d >> i just wanted to make myself clear on that. >> i understand. >> let me ask the question. several wig bangs have come in and argued that we should have a consumer protection agency because it is bad to protect from the consumer protection regulations. leb leb kwleer clear c

then after the close, cisco, prudential and news corp. >> we're going to end the show with some emptyalories here. the playmates at the playboy mansion are getting a new neighbor. founder hugh hefner has sold his private residence next door to the iconic playboy mansion for $18 million. of course, in this tough housing market that was $10 million below the original asking price. according to reports, the lucky buyer, anonymous. a wealthy man in his 20s. he'll probably enjoy meeting his new neighbors. i think they are kendra, bridget and holly. that's what the producer in the control room tells me, because he watches it all the time, "the girls next door." before we go, here's the day on wall street. we ended in positive territory, the dow jones industrial average higher by 33 points, 9,320, so above the 9,300 level. nasdaq still holding on to 2,000, a gain of 2.7 points. and the s&p 500, another day above 1,000, gain of 3 points. "fast money" is coming up next. thanks for watching. you have a have a very good night. >>> second-quarter profits rise 11% at kraft foods and the company ra

prudential. >>> now, in memoriam. >> i think all express readiness for our constitution. >> you know, this business of success from rags to riches is really the american gospel. it's the american dream. >> this week, the pentagon released the names of ten service members killed in iraq and afghanistan. we'll be back. you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience. >>> us what you happy hour tops "the sunday funnies." >> president obama, of course, everyone knows has invited harvard professor henry louis gates and the police officer who arrested him to the white house for a beer. of course, this could be trouble, the last time obama got a few beers in him, he got gen

prudential. most people try to get rid of ndga ae, we're trying to grow it. the algae are very beautiful. they come in blue or red, golden, green. algae could be converted into biofuels... that we could someday run our cars on. in using algae to form biofuels, we're not competing with the food supply. and they absorb co2, so they help solve the greenhouse problem, as well. we're making a big commitment to finding out... just how much algae can help to meet... the fuel demands of the world. >>> we'll be right back with "the roundtable" and "the sunday funnies." wee! happy days are here again. oh! celebrate summer with giant and enjoy mouthwatering fruits and vegetables at prices you can handle, like strawberries -- 3, 1-pound cartons for just $5.00. this week only at giant. what's better than steak on the grill? steak, ccken, hibs, and burgers on the grill. at giant, you'll find fresh, delicious quality meats at prices that sizzle, like super-g boneless chicken breast just $1.79 a pound. this week ly at giant. >>> former president clinton on a secret trip to n

prudential. most people try to get rid of algae, and we're trying to grow it. the algae are very beautiful. they come in blue or red, golden, green. algae could be converted into biofuels... that we could someday run our cars on. in using algae to form biofuels, we're not competing with the food supply. and they absorb co2, so they help solve the greenhouse problem, as well. we're making a big commitment to finding out... just how much algae can help to meet... the fuel demands of the world. >>> we'll be right back with "the roundtable" and "sunday funnies." explain. oh yea, well for 6 months, customers get all three: fios tv, internet and phone for just $79.99 a month. oh, all right, see... you're just moving your fingers, aren't you? i gotta cut my nails. (announcer) now get three amazing fios services for the price of two. tv, internet, and phone for only... for the first 6 months. it all adds up to one incredible deal from fios. call the verizon center for customers with disabilities at 800.974.6006 tty/v unlike cable, fios brings 100% fiber optics straight

the prudential center is good. you have decent public transportation.i think you have improved on what has been done. my question is, will you do what you can to bring the new jersey nets to newark? guest: despite the nickname of brick city, which might because of the khmer's drop shot, professor paul belongs in a newark. nets are being moved to brooklyn. they have not been broken ground there but we hope there will be an opportunity to buy the team and keep them in new jersey. we think it can drive tremendous revenue and create excitement and energy in the city of newark. that will stimulate and supercharged downtown development. i am in agreement with you. we are working on that. we're hoping the owners of the team can see from a spreadsheet analysis that the team will most succeed in a brand new or renew in newark, new jersey. host: is the new york giants or the new jersey giants? guest: i'm good friends with the owners of those -- of that teens. they did the special dispensation that i could call them the new jersey giants. they play in new jersey.

and scary moments for shoppers as they're forced to evacuate the prudential center in boston. a pipe leaked through the building and the air- conditioning stopped working and forced beam to cram into the stairs to get out. >>> they're showing a major fracture of the water line and we have limited uses on the elevators. we brought the firefighters in to help the people out. some will be assisted from the 6thfloor. two were treated for anxiety and a firefighter slipped and fell, but no one was injured. >>> police car video captures a head on collision involving a teen and a deputy. it happened monday night in floyd county, indiana. the teen's car crossed over into on coming traffic and both appear to be totaled and neither was seriously injured the police car blocked the teen from a dangerous accident. >>> if he wasn't along, he would have ran off of the road there. it looked like he made a sharp left. i'm not sure what that cause is. >> the seat belts saved both drivers from getting hurt and the teen received a ticket. >>> and time's running out for cash for clunkers and auto d

julie mayer joins us in the studio and ashisha goil and jim from asset prudential joins us, as well. the u.s. rally, do you think we have enough to go on to see the market continuing to trend higher? >> well, you know, americans are optimistic and people in general. i think there's a tendency to want to restore confidence. i think the world is awaiting signs of that and i think americans recognize there is a trend towards a new kind of business paradigm emerging, as well. is it sustainable? i think there's a big change under way, but the american economy is embracing that change. >> what do you think of the pullback we're seeing in the markets right now? could we see the risk of an equity bubble bursting in china and what could be the implications for the rest of the region or the rest of the world, for that matter? >> shanghai has been the best performing market in the world. the authorities, because they're scare of what is going on in the global economy had a very pro growth policy. bank lending was up 90% in the first half. so there is a risk that the valuations are high and rece

standards that make them own risk for systemically important institutions, carry out more macro-prudential supervision than it's done before. although, let me say the treasury proposal separates that out and gives that responsibility mainly to treasury -- well, mainly to the risk council that's staffed by treasury and chaired by the secretary. >>hank you, i'm not sure i understand all of that but i'll try to absorb it but i appreciate your answer. dr. berner, you indicated that coordination with other regulators will be essential to all of this. can you be more explicit about that. what other regulators -- i assume the fdic andthers and exactly what that coordination would be. is that something the federal reserve would do or there should be some sort of council that would meet on a regular basis. how would that coordination occur in your mind, at least. >> well, i mentioned there are probably two aspects of that coordination. one is within our own boundaries in the united states and for u.s. financial institutions. but i also think that that we need to coordinate globally since our market

prudential, allstate, affleck. these charts look great and should be going higher over time. everybody still needs to buy insurance. >> and we haven't had -- i guess they have a little bit of pricing power right now, but we haven't had any massive -- well, i guess you're property and casualty too, or all -- >> everything, all of the above. >> charlie smith, aside from the chicken cyclical, you also like verizon, huh? >> yes, we think telecom hasn't done particularly well this year. if we get weakness in the marketplace, the laggards like telecom i think should hold up well, because they haven't seen much of a rally. >> and michael, you have another name to talk about. robert haaf. >> yeah, robert haaf international. we spent a lot of time talking about employment, and i think this is interesting to take a look at, because i think it's embem attic of a lot of names that have done well. i used chevron as an example that has underperformed. this is trading at or above this time last year, and obviously it's in a very different place. year over year, the last quarter, they had ab

if we are to win we are going to have to create capabilities a the prudential andistrict level that doot create. do not today exist. above all, if we are to have a strategy based on sha-- we ed t start talking about smart power as if we have it. don't have the civilians in the field. the so-calle civilian surge will not come close to the minimal requirement. at the end of it, 80% of the people doing the civil and aid side of the work will still be in unifor and if we can't define better, what iteans to do the civil side of operations, we will continue to alienate the afghan peopleather tha secure them and give them a ture. and as yet you cannot find anywhere in american military literature dinition of what it means or a single statement by any u.s. official to indicate when the capability, the manpower, or person power, to provide them will be deployed. we've lost too many wars in too many places of this kind@@@@ rb off and discuss the comments that admiral mullen made over the weekend that the suchuation in afghanistan was serious and deteriorating. a comment with which i agree on the

the prudential building in our city, one of the best building we have, they were threatened. we are very keen to focus on homeland security when you sit on the largest transportation to restructure in the northeast. you really have to be aware of your airport security, or to charity, roads, because we are a critical point. i want all of us as americans, as i let people know all the time, then the fear of the immediate threat of terrorism -- we cannot allow the long-term threat to our national security go unnoticed. i had a conversation with colin powell where he talked about terrorism, and i raise my hand and asked him what the greatest threat to our democracy was over the next 50 years? he did not miss a beat without hesitation and said the greatest threat to our democracy is our inability to educate all of our children and the divisions that still exist in america. as a young man who is in a city every day, who sees and what is happening on the national level with education, we have to recognize we are competing a national strength which is in direct competition with a glob

here are the reports of the day from proctor & gamble, polo ralph lauren, cisco and prudential will report later this afternoon. >> let's get to the cme this morning. ira joins us to head up the day. >> thanks, carl. >> it's sort of a bit of a revisit to the last couple of weeks. in that, we're going to get a big dow component before the bell. expectations aren't that high for pg&e. but if the news is higher, there reason to restart the market after these past couple of days of mild trading? >> no, i don't think. we've had quite a run here so is there a lot of fuel? maybe we'll get up to the 1015 or 1015 coming off the resistance with those numbers. but yornlg it will go a long way to do that. >> what is the feeling about what adp might say? >> well, you know, these are the critical numbers, of course. and as much as the nonfarm, which everybody has been focused on, this rate is probably more significant and, of course, the average workweek because that's where the real test is going to be because we've seen that go lower and lower. and the average hourly earnings, there's been no growth a

federal reserve already gulates large investment banks and we have been moving to incorporate a more prudential approach to the supervision and regulatory programs as evidented by the recently completed capital assessment program. the federal reserve has also long been a leader in the development of strong international risk management standards for payment clearing and settlement systems and we have implemented the standards for the systems we supervise. in ourupervision of bank holdg companies and our oversight of some payment systems, welready work closely with other federal and state agencies. these responsibilities and close working relationships have not interfered and we do not believe that enhancements to our existing regulatory authority proposed by the administration would undermine our ability to pursue our monetary policy obctives effectively and independently. our independence in the conduct of monastery -- monetary account account. for instance, the federal reserve reports on its efforts in the semiannual monetary reports and associated testimony. the federal open market committee

it goes back to the 1930s, of prudential financial regulation of banks and other financial institutionsn essence, regulatory reliance on ratings. in essence, an outsourcing for delegating of safety judgments to these third party credit rating agencies. for example, the prohibition on banks as determined by the rating agencies ratings. in you, these third party judgments about the credit worthiness bonds with the force of law here this problem was compounded when the sec created the category of nationally recognized, and rso, in 1975, and in the sec subsequently became a very good industry in the rating agency. as the year in 2000, there were only three nrsro. movies, standard & poor's, and tranninety and should thus come as no surprise that

is something that institutional participants can figure out on their own with oversight by the prudential regulators to make sure that at the end of the day they have safe and sound bond portfolios. >> is it possible that ratings as airfreiter value for more complex and structured products such as cdos and clos? >> they are clearly simpler to rate. the entities are more transparent. and the problems are fewer. so, yeah, it's likely -- you know, they - certainly the history tells us they were better benchmarks. >> mr. gellert, you note the inclusioof ring in regulations as given the big three the defactor legal and statutory power and other financial institutions. to you recommend that references be removed from regulatio do you believe the government's removal would create incentives to conduct better and greater due diligence? >> i think it will. just outside of the legal liability issues there will be the marketing issues and the investor reporting issue for these institutions. because the focus will come on to understand better what types of credit work they are doing internally. this

the social security cards is trying to get to the fundamental issue of the where is the secure prudential and secure identity. >> if i could follow up on that, you mentioned earlier about to pass id and some concerns or problems, can you expand on where you are with fat -- with fact and what are your feelings franks. >> sure, so we do have some concerns with a bill that we can have a verification is dated to april 9/11 level and i thank you saw that some of of the issues around verification and validation are actually weaker so we are not always authenticating all the documents being presented to prove your identity and not here to find that i'm actually the owners of those documents so i think one example there is a great youtube video of a guy who goes into a virginia dmv and guests were licenses on the same day and he uses documents and changes his name every time but the fourth time he actually spray-painted a unit brown on his face and they gave him the license. the thing is that's because they were able to authenticate the documents being presented by the social security number and