gibson, what is the timing for the development of prudential standards for nonbanks? and do you need to know p nope who they are before you develop these standards? >> so the timing for finishing our are rule making on section 165 and 166 is that we've put out the proposed rule for comment. we've received a lot of comments. we're in the process of reviewing those comments and we're working towards a final rule. but we will still have the possibility even after the final rule is done once a specific nonbank company is designated to tailor our standards to that particular company. >> my time has expired, thank you. >> thank you. mr. bacchus for five minutes. >> thank you. mr. gibson, i'm reading 113. eventual to read 113 i guess in connection with 165. is that correct? in determining what is a sifi and what is not? >> so section 113 lays out the rules for designating firms and section 165 describes the standards that will be applied to these firms. >> right. you know, it appears the prudential standards that are in 165 once you designate are banks -- are they not? >> ye

act require the federal reserve to establish enhanced prudential standards both for the largest bank holding companies and for non-bank financial companies designated by the council. these enhanced prudential standards include requirements for enhanced risk based capital and leverage requirements, liquidity, risk management, stress testing, and resolution planning as well as single counter party credit limits and an early remediation regime. in december the federal reserve issued proposed rules which would apply to the same set of enhanced prudential standards to cover companies that are bank holding companies and cover companies that are designated non-bank financial companies. the federal reserve may tailor the application of the enhanced standards to different companies on an individual basis or by category. working out the exact details of how enhanced prudential standards will apply will certainly require a thoughtful and iterative analysis of each designated company over time. the federal reserve is committed to thoroughly assessing the business model, capital structure, and ri

it would be essential to tailor the new prudential rules for insurance companies. bank centric regulations are inappropriate for an insurance company. if a nation's largest are named and subject to unmodified bank style capitol and liquidity rules. our ability to issue guarantees would be constrained at the time when governments are facing their own fiscal challenges. insurers would have to raise the price of products the they offer, reduce the amount of capitol or risk or stop offering certain products all together. i do not believe metlife is or should be designated too big to fail. if fsoc names the largest as it will be imperative to get the prudential rules right. >> thank you. >> thank you, mr. willard. our financial witness, mr. douglas eliot. fellow of the brookings institute is recognized for five minutes. >> thank you for the opportunity to testify before you again today. these are institutions most capable of triggering financial crises and merit closer regulation than most other firms and should be held to a higher standard of financial conservatism. th

>> the same enforcement tools for enforcing the enhanced prudential standards on nonbank companies that we currently have. >> which are what? >> supervisory tools, examinations. >> what's your enforcement? if they're bad actors and do something wrong, what will you do? >> impose upon them written agreements, civil money penalties, the full range of tools we currently have with bank holding companies. >> whenever you designate someone as a sifi, is this going to be public knowledge or something that's internal between your agencies and the individual company? >> the final designation of any particular firm for enhanced prudential standards would be a public event. >> one of the things that i quite frankly like about the dodd frank bill is that each one of these agencies -- or entities will have to put together a living will. would you describe to me what would be in a living will that would be important for you to see that were florithere and ho would operate? >> it requires that the company describe how it could be resolved under the bankruptcy code. so for companies that are very compl

and one of the enhanced prudential standards that nonbank companies that are designated by the council will be subject to is enhanced capital requirements that will make sure that a buffer exists to cover unexpected losses of the type you're describing. >> and for he hedification procs foes those who would like, go back to the stock market crash. read about how the resistance that took place when we were trying to put fdic in place, and fdic has proven to be very beneficial when we are looking for an orderly means by which we can liquidate banks. true, mr. gibson? >> yes. >> are we trying to do the same thing now with nonbank institutions? >> that is the intention of the title 2 early liquidation authority, to extend what the fkic has for banks to nonbanks. >> and i would close with this. we can do this and not overregula overregulate. i think that's what we're trying to accomplish today. do you agree, mr. gibson? >> that is what we're trying to do. >> mr. auer? >> i would agree. >> thank you. thank you, madame chair. >> mr. luetkemeyer. >> thanks for coming today, gentlemen. a couple

do you think that the increased prudential standards on these larger riskier companies could actually lead to an improved competitive atmosphere for our community banks? >> no, so, nothing in the section 165 or the majority or almost all of section 165 and 166 do not apply to community banks. what we're doing is raising standards for bank holding companies that have 50 billion and above which is far above the level of traditional community bank so any bank holding company that is above 50 billion in size would be subject to these higher standards and you ask the question of whether that could give a competitive advantage to community banks and the potential is there for that to happen because community banks will not be subject to the higher capital, liquidity and other standards that the bank holding companies 50 billion and above or the non-bank companies will be subject to. >> i have seen that we have the small group of banks and the medium-sized banks and the very large banks, too large to fail. it seems to me that the medium size, those that are in the 12, 13 billion in assets or

stability of the united states, those firms that could pose such a threat are subject to enhanced prudential standards. >> does it seem prudent to impose bank-like regulations on nonbanks? >> what we have proposed in section 165 and 166 is focused on the banks. that section applies to both bank-holding companies that are both 50 billion and above and any nonbank companies designated by the council. the standards that we have proposed are focused on the banks, but we have been given the authority in dodd frank to tailor the standards to the characteristics of a particular company, a nonbank company that is designated. and we have said that we will use those -- that authorization to tailor the standards as appropriate. >> and has the fsoc conducted a thorough cost benefit analysis on the designation of nonbanks as systemically important, specifically in regards to asset managers? >> so the agencies are obviously concerned about their costs and benefits of their actions and they want to bear in mind that this rule was not required in statute. the rule was designed to provide greater clarity abo

these enhanced prudential standards include requirements for enhanced risk-based capital and leverage requirements, liquidity, risk management, stress testing and resolution planning. as well as single counter-party credit limits and an early remediation regime. in determine, the federal issued proposed rules, which would apply the same set of enhanced financial standards, to covered companies that are designated nonbank financial companies. the federal reserve may tailor the application of the enhanced standards, to different companies on an individual basis or by category. working out the exact details of how enhanced prudential standards apply, will require a thoughtful analysis by each company over time. the federal is committed to assessing the business model, capital structure and risk profile of each designated company and tailor the application of the enhanced standards of each company. with respect to the third prong, the dodd-frank act provides two important new regulatory tools. both of which extend to systemically important nonbank financial companies. first, each of the l

prudential. corporate funding is also provided by -- boeing, at&t. rethink possible. additional funding is also provided by the annenberg foundation, the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. >> once again, from washington, moderator gwen ifill. gwen: good evening. we have a special treat for you tonight -- an in-depth look at the presidency, and the men who held the job. there are five living presidents right now -- the oldest, jimmy carter. george w. bush invited the four other members of the club to come back to the white house shortly before president-elect obama was sworn in. the message -- they were all on the same team now. >> one message that i have and i think we all share is that we want you to succeed. whether we're a democrat or republican, we care deeply about this country. and to the extent that we can, we look forward to sharing our experiences with you. all of us who have served in this office understand that the office itself transcends the individual. and we wish you all the ver

prudential. >> we know why we're here. to connect our forces to what they need, when they need it. >> to help troops see danger before it sees them. >> to answer the call of the brave and bring them safely home. >> around the globe, the people of boeing are working together to support and protect all who serve. that's why we're here. >> corporate funding is also provided by norfolk southern, at&t, rethink possible, additional funding is provided by the annenburg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you, thank you. once again, live from washington moderator gwen ifill. gwen: good evening. one of the best things about accepting the news at week's end is we get to see what went according to plan and what didn't. the president wanted to make the case that his re-election has sustained the recovering economy. >> one of the ways that we can sustain momentum is for congress to take some actions right now even though it's election season, even though there's gri

the consequences of being designated is that a firm will be required enhance prudential standards including capital requirement, liquidity. and a requirement for living also among others. >> is that a yes? >> the council is aware of what the consequences of designating an asset manager firm, yes. >> you have considered the adverse effects. >> i'm not sure i know what you mean by adverse effects. >> let me ask you this. have asset managers been involved in the study to date? >> engaging in analysis to the extent to which they are potential threats to asset stability. the offer has begun the process of talking with people in the asset management industry and will continue to do so. the council and the member agencies are welcoming any comments -- >> is there a formal process for conducting the due diligence for asset managers? >> any asset manager firm or any entity that wants to meet with the council, staff about the designation process is welcome to contact any agency and we will try to set up meetings for that firm. >> what i'm concerned with is the fsoc evaluating asset manager. they are

again, this is in valparaiso, indiana, in the prudential building.e are in touch with him, we are told. so it's good that communication is happening at this point. we're monitoring the situation. and as we find out more, of course, we will bring it to you right away. there's more news headed your way. "rapid fire." roll it. the fbi is questioning a man who tried to storm a cockpit door. he refused to take the seat when told. according to the airline, when snyder moved towards the front of the aircraft, that's when he was detained. passengers watching all of this go down on the plane. >> it was frightening the way terrorism is these days. it was like it was terror sitting in the seat so we were a bit worried. >>> also, hurricane bud smining towards the west coast of the mexico as we speak. take a look at the picture. yeah, it looks ugly, big. but it's losing steal. it's weakening to an 80-mile-an-hour category 1. just enough to ruin your vacation there. there is also another system that could turn into a tropical storm along the east coast. and that c

i'm pleased that prudential, that if you have invested a dollar or a pound in prudential, three years ago it would be worth two pounds today, we thing that's a very good delivery. it's significant headwinds if you look at the environment. so i think that their performance, remuneration should follow, and that's our fundamental belief. >> and i read that you've hired savos to look for square footage. does that mean you're going to leave your building in the uk? >> we need to find a new home in the uk. i'm a great believer in delegation. i may have some skills, but -- >> i just wondering whether that means -- i should. read because you're looking for a new building that that means you're going to keep your headquarters in the uk. you might move it. >> we've always said the same thing. we like london. that is really what is driving those conversations, not a view that we have in london. >> are you -- >> actually i'm slightly more optimistic than the last time we spoke. march 21st was a key date. there was some progress made with the brownberry prospect. we're not quite there yet. it's pr

prudential. >> this is the at&t network, a living, breathing intelligence, bringing people together to bring new ideas to life. >> look, it's real simple. >> in here the right minds from inside and outside the company come together to work on an idea. adding to it from the road, improving it in the cloud, all in real time. it's the at&t network, providing new ways to work together so business works better. >> corporate funding is also provided by boeing, norfolk southern. additional funding is provided by the annenberg foundation, the corporation for public broadcasting, and by contributions to your pbs station from viewers like you. thank you. once again, live from washington, moderator gwen ifill. gwen: good evening. one of the week's most fascinating stories unfolded half a world away. it involved a blind hero, a daring escape, alleged death threats, secret negotiations of a high-profile domestic dance between two tentative allies, the u.s. and china. the curious case of chen quangcheng. >> he confirms that he and his family now want to go to the united states so he can pursue his s

prudential. >> this is the at&t network. a living, breathing intelligence bringing people together, to bring new ideas to life. >> look, it's so simple. >> in here, the right minds from inside and outside the company come together. to work out an idea. adding to it from the road and improving it in the cloud all in real time. >> good idea. >> it's the at&t network. providing new ways to work together. so business works better. >> corporate funding is also provided by boeing. norfolk southern. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers look you. thank you. >> trusted.asl strings playing ] "great performances at the metropolitan opera" is brought to you by toll brothers. with its commitment to elegant craftsmanship and luxury lifestyles, toll brothers has been building homes and communities throughout the nation for 40 years. the national endowment madfor the arts,...

prudential. >> this is the at&t network. a living, breathing intelligence bringing people together, to bring new ideas to life. >> look, it's so simple. >> in here, the right minds from inside and outside the company come together. to work out an idea. adding to it from the road and improving it in the cloud all in real time. >> good idea. >> it's the at&t network. providing new ways to work together. so business works better. >> corporate funding is also provided by boeing. norfolk southern. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers loo >> trusted.

prudential is the biggest loser down nearly 14%.the board. >> the thing about prudential is this is not some high flying valuation tech name or even a green mountain or whatever. this is a financial company, an insurance company, newark, new jersey, based. it does not have a high valuation especially inside of its group. at the same time we're seeing prudential trade in some ways like a higher flier that is coming down to earth. >> there are nonetheless a few gems that we've found for you. they're bucking the bears right now and hitting new highs. u.s. airways is one of them. it's at a 52-week high up nearly 5% this week alone. headway in its quest to acquire american airlines is one reason for that move. >> you've got that. obviously they're going after american, but probably the move in lcc is related to the fact oil is taking its biggest single drop this year. >> wind is a crucial factor. but this is the silver lining. this is of course one of the phillips of today's jobs number and that is that oil prices are coming down and it

prudential. prudential. bring your challenges.t of me. it's me again. now that i'm retiring they all have plans for me. i'm excited. delicious gourmet gravy. and she agrees. with fancy feast gravy lovers, your cat can enjoy the delicious, satisfying taste of gourmet gravy every day. fancy feast. the best ingredient is love. fancy feast. >>> what was your question, jesse? >> i know you're shy and afraid to break the ice so i'll start. could i see you sometime? >> no. >> i see. actually that was only part of my question. >> i'm sorry. was i rude? >> no. you were direct. i like direct. could i see you sometime and would you walker of the that door and punch me in. >> because? >> because i like watching you. >> i'm too young for you. >> i'm hurt. >> and he's smooth. did she just say no to tom selleck? she did. >> she is too young for jesse. >> the popular show on cbs. >> he finished up "blue bloods." welcome. >> it's good to be working. >> you know what they say about you, still strikingly handsome, dimple-cheeked. at the age of 67 he

again a man walked into a prudential real estate office around 10:00 this morning chicago time. with a gun. and there were reports he fired three shots. police have not confirmed that. he now is holding an unknown number of hostages. the reports were from two hostages up to 15 hostages. police have identified the suspect. and they have made contact with him. they will not say exactly what kind of contact. whether they spoke to him on the phone or if they were in text message mode. but they have made contact with him. but they will not tell us exactly what he wants. this is happening as we speak. it is an all hands on deck situation. we are talking about swat teams surrounding the local building. we also have state police. local police. the f.b.i. was in front. and you can see police have cordoned off the entire downtown area setting up a perimeter three local schools are on lockdown and the local businesses in and around that area have been told to keep their employees inside and local residents are kept away. we do not know the weapon this suspect has and, again, we do not know

should the fsoc wait for the fed to finalize this rule on enhanced prudential standards before it begins designating non-bank firms as sifis? >> i think, you know, what is interesting is that while there's a lot of discussion of the process, there's also discussion that you're looking at different companies. big problem of that is poster is that we have bank-centric model that is not going to move off of, they are now looking at business models of companies, and they have the sifi companies they should start to look at whether or not there are unique characterizations they should be looking at, as was discussing that with prudential regulators as well. >> thank you. mr. harrington, how often -- individual companies will reduce their likelihood of any future i mentioned crisis? >> i'm not optimistic about that, given historical record and the dynamism of the markets, i think it's very for difficult to anticipate what's likely to happen and what the sources of risk may be. in the near term i think it's likely that there will be heightened scrutiny and some reduction and the likelihood of e

>> so the intent of what we are trying to do with enhanced prudential standards imposed on nonbank companies designated is to propose higher enhanced capital requirements, not easier. and we meet with a lot of nonbank companies. they are more worried about being designated than desiring to be designated. >> i see my time is up. i yield back. >>> recognize mr. duffy for five minutes. >> i want to thank the gentleman for their testimony. at this time this panel is dismissed. i want to recognize the second panel. bring up the second panel. >>> we'll leave this hearing at this point. we are recording it and will make it available in the c-span video library. the federal communications commission goes this afternoon. commissioners will answer questions about fcc operations. we'll have live coverage starting at 2:30 p.m. white house threatening to veto the violence against women act. the house begins debate on defense programs and policy next year. the house is live right now on c-span. the senate is considering five alternative budget resolutions for next year all offered by republicans. up to si

lot of hard work, and i'd like to recognize our amazing partners at the new york life foundation, prudential, and operation endure, please, stand up. [ applause ] >> this is our time and we are so fortunate to the have very special guests with us today to honor our loved ones and offer words of comfort. t.a.p.s. is very proud to be a proud of white house joins forces campaign and work closely on a regular basis with the first lady and dr. jill biden. we are blessed to count the chairman of the joint chiefs and his wife as friends and tireless advocates for the families of the fallen. ladies and gentlemen, t.a.p.s. families, it is with pride that i introduce our good friends, vice president joe biden, dr. jill biden, accompanied by the chairman of the joint chiefs and dini dempsey. ♪ >> thank you, bonnie, for that kind introduction, and good morning, everyone. i want to welcome all of you to washington, d.c., and i hope you feel right at home while you're here. i'm so honored to be with all of you. memorial day is just a few days away, and if i can say one to all of you and your families it i

looking at individual companies is necessary as part of prudential regulation. but i do distinguish that from identifying specific companies as subject to height and scrutiny. and in the case of the insurance industry. basically federal regulation that could involve an explicit guarantee of their obligations. >> you state the board appears to be creating a one size fits all approach to not work well with nonbanks, spanning diverse industry, you think related to banning. what should the fed have done differently? >> they should be doing a number of things differently. they're a bank regulator. if you look at a manufacturing company. if they use drif tefs to accept raw materials because they need to lock in prices as well as having a financing arm to finance the purchase of finished goods and services. so when you go to the start of the process congress specifically defines what should be looked at in order to determine what the company that is engaged in the activities. the issue i raised about the use of derivatives to accept goods is specifically not in rank 4k

>> so, under the dodd frank act, in particular section 165 enhanced prudential standards we've been talking about today, the dodd/frank act asks the federal reserve to imply -- >> part of my question is does dodd/frank go far enough or should we have done more to take apart big banks? allows for breaking up banks based on very high standard of risk. should they just be smaller? >> so, what we'll be doing as we implement dodd/frank is to impose higher capital and other standards on the largest banks. we will be doing that in a graduated way that imposed the highest capital standards, for example, on the largest banks and less stringent capital standards on the smaller banks. so we'll have the effect of tilting the incentives away from becoming large simply for the sake of becoming large because the largest banks will be subject to even the capital is your charge eventually once the is your charge is implemented in the u.s. so whether it will work or not, i think, remains to be seen. we have a lot of work to implement that. it is going in the direction of putting in the requirements and less

and one of the enhanced prudential standards that non-bank companies will be subject to is enhanced capital requirements that will make sure that a buffer exists to cover unexpected losses of the type you are describing. >> and for edification purposes those who would like to go back to the stock market crash, read about how the resistance that took place when we were trying to put fdic in place. and fdic has proven to be very beneficial when we are looking for an orderly means by which we can liquid ate banks, true? >> yes. >> are we trying to do the same thing now with non-bank institutions? >> that is the intention of the title two orderly liquidation authority is to extend what the fdic has for banks to non-banks. >> and we can do this and not ov overregulate and that is what we are trying to accomplish today. >> that is what we are trying to do. >> i would agree. >> the comments of congressman al green democrat of texas before a house subcommittee focusing on financial institutions and the testimony of michael gibson from the federal reserve board and lance auer. the systemically impor

the dodd-frank act also specifically requires that the sec, the cftc and the prudential regulators consult and coordinate with foreign regulatory authorities on the establishment of consistent international standards. accordingly the commission is actively working with regulators abroad to address the regulation of derivitives, encouraging foreign regulators to develop rules and standards complementary to our own. the commission expects to complete the last of the core elements of our proposal phase in the near term. in particular, rules related to the financial responsibility of security based swap dealers and major security based swap participants. the commission is finalizing a policy statement regarding how the substantive requirements under title 7 within our jurisdiction will be put into effect. this policy statement will establish an appropriate and workable sequence and timeline for the implementation of the rules. as a practical matter certain rules will go into effect before others can be implement and had market participants will

this is happening in a prudential real estate office in indiana.police say the man with a gun is still in the building. i will keep you update here right court here are kron 4 morning news. >>mark: manse suspected of killing and shooting a boy in more than 30 years ago was taken to the hospital for psychological and i wish him. hernandez is get to appear in court today. was 33 years to the day after this boy's disappearance hearn and as a sign a confession. police have not uncovered any forensic evidence. >>darya: procter and gamble up the gamble is going to create a double latched when it often did to tide pot the next couple of weeks. doctors say the kids think that they look so finding good the think it's candy and sometimes all it. but children are poison but there have been no deaths reported. they do look tempting for little kids that will get is the there. put a latch on. >>mark: there is losses for the doubt. the s&p is up a fraction. appleseed of tim cook is giving up big money in a file with the sec is today. cook requested that is restri