. >> this report is brought to you by prudential. they came from all over the united states to be honored in washington, d.c. -- teens who have already made a difference in their communities and the world. >> please join me in officially saluting the 2012 prudential spirit of community state honorees. >> for 17 years, prudential, along with the national association of secondary school principals, has been saluting teens who lead volunteer efforts. middle and high school students are chosen from each state and the district of columbia. state honorees were awarded silver medallions and $1,000. the 10 students named national honorees received gold medallions and a $5,000 grant for the charity of their choice. and all the honorees received praise from a winning super bowl quarterback. >> what i know is if "elite" means "best in class," this year's winners of the prudential spirit of community award clearly fit the definition. >> national honoree gracie schram is from kansas. the 13-year-old performer sold cds to help communities in afric

they really weren't going to be serious with prudential regulation. they had a lot of people involved with making fannie and freddie mac getting housing goals. it amounted to me making one call a year to david. david, how are you doing today? it's great over here. it's fantastic. as i look at your books, you're $10 billion under water. yeah, who cares. we can have as much debt. our debt hasn't risen. what different does it make? how many financial analysts do you have in that shop? he says i think there's one guy down there writing newsletters. i said how about legislative affairs and people, you know, in charge of the care and feeding of hud? he said there must be 50, 75, they're growing like crazy. that tells you what you really needed to know about these entities. they didn't face a bankruptcy constraint. so why, and this is the end of my story, but why it happened, why did the financial crisis become systemic? well, even through all this period, never reached the home ownership goal. got close to it, never reached the 70%. there was a new criteria

the affordable housing goals trumped prudential regulation. and the regulators didn't stop them from making bad loans. and then i'll show why and how the s.e.c. and bank regulation arbitrage provided similar leverage to these private label securitizers as fannie and freddie mac were able to achieve. the smart money was replaced by dumb money and then it was the regulatory accounting that allowed them to book fake profits, that forced them to book fake profits that kept this whole model alive and in the end you can't short the government, which was what was driving the house prices up for that whole period of time. so basically what i'm going to give you now are really the confessions of somebody who is a former hud-er or a former freddie mac-er but mostly a former private label securiti r securitizer. how were their capital requirements set? anybody know? the financial crisis inquiry commission didn't tell you. they don't know because they're very opaque. and one of the reasons they're opaque is private label securitization wasn't created, it

and we are responsible for the prudential supervision of the bank. since early april the occ has been meeting with bank management to discuss the chief investment office positions, risk management and controls. as the positions deteriorated discussions turned to corrective actions and steps necessary to mitigate and reduce the risks of the banks' positions. we in the federal reserve are conducting reviews in the bank and are sharing information with the fdic and other regulators. we are also undertaking a two pronged review. of our supervisory activities. the first component focuses on evaluating the adequacy of risk. risk controls at the bank informed by their application to the positions at issue. the second component evaluates the lessons learned from this episode that could enhance the risk management processes at this and other banks. consistent with our supervisory policy of heightened expectations we are demanding that the bank adhere to the highest risk management standards. we are not limiting to particular transactions at issue. we are asse

prudential. >> corporate funding is also provided by norfolk southern, at&t, rethink possible. additional fundinging is provided by the annenberg foundation, the corporation for public broadcast,and by contributions to pbs stations from viewers like you. thank you. >> once again, live from washington, subs teuting for gwen ifill, john harwood of cnbc and the "new york times" -- john: good evening. the presidential campaign this week moved to florida, where both president obama and mitt romney competed for support among hispanic voters. the back drop? that group's growing influence and the president's big immigration policy shift aveg few days ago. >> we announced that we're lifting the shadow of deportation from deserving young people who are brought to this country as children. we should have passed the dream act a long time ago. it was written by members of both parties. when it came up for a vote a year and a half ago republicans in congress blocked it. after three and a half years of putting every issue from loan guarantees to his donors to cash for clunkers, putting all th

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 on an idea. adding it to it from the road, improving it in the cloud, all in realtime. 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 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, live from washington, moderator gwen ifill. gwen: welcome to this week's roller coaster, or maybe it's not so welcome if you are a democrat. wisconsin republicans set the stage tuesday by fending off a vigorous attempt to recall embattled governor scott walker. both president obama and governor romney remained at arms' length from that battle, but, in victory, walker saw a lesson for both men. >> i think voters coming to the presi

prudential. >> 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 like you. thank you. >> trusted,

. >> corporate funding is also provided by -- prudential financial, at&t, rethink possible. additional funding is provided by the annenberg 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. the president took matters into his own hands today, moving to allow noncitizen students and graduates under 30 to avoid deportation. it's a version of the dream act, which stalls in congress last year but has become for now the leading immigration issue. >> the bill hasn't really changed. the need hasn't changed. it's still the right thing to do. the only thing that has changed apparently was the politics. it makes no sense to expel talented young people who for all intents and purposes are americans. gwen: mitt romney seized on the president's admissions and his was a short-term solution. >> if i'm president, we'll do our very best to have that kind of long-term solution that provides certainty and clarity for the people who come into this

prudential. >> this is the at&t network, a living, breathing intelligence bringing people together to bring new yods life. 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 on it from the cloud, all in realtime. 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 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, live from washington, moderator gwen ifill. gwen: good evening. a remarkable week in washington, and we'll get right to it. there is almost no underselling the scope of the victory the obama administration scored at the supreme court this week. the man they have to thank? not perennial swing voter anthony kennedy, but chief justice john roberts. consider the contours of the court's two 5-to-4 votes to uphold the affordable health care act. a majority actuall

prudential. >> 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 like you. ll >> for 45 years washington week has provided the most interesting political conversation of the week. i'm paul anthony with kimberly suiters. washington week is the longest running primetime news and public affairs program on television-- not just public television. it has continued for all these years thanks to the support of viewers like you who have invested in the program. when you call the number on your screen and make a contribution, you can count yourself as one of the supporters of washington week. >> when you make that call, we have some very special ways to say thank you. pledge $75, and we can send you the washington week stainless steel tumbler. for a $100 donation, ask for the washington week umbrella. or for a pledge of $150 you can request the tumbler and the umbrella. during the 2008 presidential campaign s

>> i think prudential had a bad last quarter. i'm mystified by it. my charitable trust blew out of it before the quarter. once it came down you look again. no, $46 doesn't tempt me one single bit. steve in pennsylvania, please. steve. >> caller: boo-yah, jim. >> boo-yah, steve. what's up? >> caller: i'd like to say that i like watching you in the morning. >> thank you. >> caller: i watch you every night. >> you're terrific. thank you very much. thank you. >> caller: okay. i'm having a hard time with one of yours and my favorite stock. cmg, chipotle. i know with consumer sentiment and discretionary spending numbers coming in really low i'm just -- i just don't understand how we lost $25 yesterday and $25 today. >> it's a good point. the stock is still up more than 11%. here's one of the problems. we are in a real news vacuum. i'm talking about it tonight. the news vacuum isn't good. no one is saying anything positive. i think we have to wait and see. i think that core franchise is a good one. the big bad health care ruling is now at last behind us. ♪

registration will be held aa the prudential centee through tomorrow morning.s will also take ppace tomorrow.good lucki'm candace dold and that's your lowdown 33 a guitar that's not the amazing part of this video. what wws haapening off screen that makes this such a strangee story. 3 --adblib weather tz-- playing guitar.../.. that... is... amazing eeough..../ but... a... cat... that can play guitar... during an earthquake..../ well... that's really iipressi. impressive.ááguitar & rumblingáá steven the cat... was being videotaped... by his owner ... when ...aa. 5.2... magniiude earthquake ... struck melbourne australia.../. you... can see the cat plly../ then ...stop for a and... then start playing more odd... about is... that the animal's pat... instead of trying to move while an earrhquake shook &phis home. 3&p when... severr weather happens... get alerts sent directly to your cell phone. go to foxbalttmore dot com .../ and look for "mobile" onnthe screen.... or text wbff to 45203 to sign up for text alerrs. 3 3 robo-cupp2012.. the challenge being issued by th

. >> reporter: thousands from all walks of life hitting the prudential center all pumped up and ready to show america what they've got. >> no one else can feel it for you ♪ >> with so much enthusiasm, many contestants began arriving friday night. every singer seemed to be auditioning for their own reason. >> my sister, she passed away when she was two, and i'm doing this for her. ♪ some people live for the fortune ♪ ♪ some people live just for the fame ♪ >> even host ryan seacrest is taking time to mingle with the crowd. >> i never get tired of this process because there are a lot of hopefuls, a lot of potential waiting for their first shot on screen. >> the nationwide stop continues in chicago, new orleans, oklahoma city. the premiere of american idol season 12 kicks off in january. in new york, anna quinnland, fox news. >>> this little guy won a much different competition. he is now the world's ugliest dog. i don't know. i don't get it. i think he is kind of cute, right? his name is muggily, an eight- year-old rescued chinese crested dog. they traveled all the way from england. so w

i'm with prudential douglas element. i've been selling residential real estate in new york city for 28 years. >> my name is siggy flicker, i'm a matchmaker and dating expert in new york city. i'm looking for a love shack for me and my fiance michael. >> siggy's price range is between $2.5 million and $3 million. their primary home is in new jersey. this will be a getaway. >> we're getting married at the plaza hotel in april. i think this would be the perfect opportunity to stress him out even more and look for place this months. in today i'm showing two two-bedroom apartments. one in chelsea, one in midtown. we're at 101 west 24th street, between 6th and 7th avenue. >> i'm excited about meeting with toni and finding my love shack. thank you. toni! >> siggy! how are you? >> what are we seeing first? >> two bed, two bath on the 18th floor. you ready? >> so excited. let's go. >> okay. siggy, i'm so excited for you to see. this we're going into the living room. we're facing south and west. and you get beautiful sunsets in th

the enhanced prudential standards present a number of important issues for consideration before final regulations can be implemented including how to tailor the applications to firms of different sizes. as to market discipline one development of note is that the federal reserve and fdic will in the coming months be reviewing the plans to be submitted by large forms in cordance with the joint rule. finally with respect to supervision the federal reserve continues to build a more centralized horizontal and data driven approach to supervision of our largest institutions. the process has run the stress test and other horizontal supervisery exercises since its establishment in 2010 and is extending activities to coordinate more effectively. thank you for your attention and i will be pleased to answer any questions you might have. >> thank you. comptroller curry, please proceed. >> thank you chairman johnson and ranking member shelby and committee members. thank you for the opportunity to update you on our implementation of the dodd-frank act, impact of supervision and our response to jp mo

have the months, years to build his campaign right over here it's just outside the shot in the prudential building, a couple of blocks away where 700 kids all with earbuds in are running this campaign. step away from that, the campaign is doing auto events in michigan, manufacturing events in ohio. refinancing events in florida, more housing in nevada. so talking very specifically about the issues that matter most in virginia, they're doing military. mitt romney with the bus tour that you're mentioning, doing the same thing. the bus tour is called your town counts. it's going to be almost all rural stops. we're going to have mitt and ann romney on the bus and their son will be out for father's day. >> do you think mitt romney, given in his campaign what you've laid out from the president obama's side of it in a slow month. does he smell a little blood in the water at this point? has their point of view changed over the last month? >> he's in such better place, so much faster. i think people thought the race would eventually be a jump ball. neither one of the teams thought it would happen

it's purpose was to be a single buy mettic prudential thatcould areas and has yet to fulfill that requirement. we still don't have readers in the field and yet, we are looking upon a situation where these cards that were first issued are going to expire shortly. and we're going to have to go through that economic burden again and still don't have readers. so, that's the problem for us. in terms of the micro situation i made comment to in the testimony in georgia and tennessee, you know, as a taxpay taxpayer, is it a good investment to have a second level of inspectors to go out just to hand out material to commercial drivers about how they can communicate when they have effective programs both in our private businesses and in an industry at large? so, i think that the key from the trucking industry would be to expand on the trusted part of the program. work together, communicate together and develop that. >> gentlemen's time's expired. now go to the gentleman from minnesota. another round of questions if you want to pick up mr. richmond at that time. >> that's fine. >> thank you. >> thank you

implementation work to come, whether the volcker rule or questions about risk management or enhanced prudential standards or for that matter capital. and i think this incident underscores the need for us to pay attention to examples like this in order to learn those lessons, both with respect to dodd-frank implementation and as i suggested earlier the broader efforts of supervision that are ongoing. >> secretary wolin, are regulators better coordinated and prepared after wall street reform to deal with external threats to our financial stability and economic growth like the eurozone crisis, what steps are you taking in response to this crisis? >> i think there's no question that the various banking and market regulators of the u.s. government have an opportunity to constantly monitor financial markets and the exposures of our banks and our broader financial system to what is going on in europe. the financial oversight council has spent a lot of time on europe and thinking through what its implications are and what might be to our financial system, that work of course is ongoing. but i think for

lankan government and elected representatives of the community, and a devalution of power, two prudential institutions. during a may 18th meeting with the sri lankan foreign minister, secretary clinton underscored that an enduring peace is unsustainable without adequate measures to address reconciliation and accountability. she encouraged a transparent and public process with regard to reconciliation and accountability to strengthen confidence inside and outside of sri lanka and speed the healing of the country. if confirmed, i stand ready to lead our efforts to support sri lanka as it moves forward and to use u.s. assistant strategically to promote reconciliation, strengthen democratic institutions and practices, and foster economic growth, particularly in the north and east, the former conflict zones. the u.s. ambassador in clomp columbo was accredited following -- in maldivess following protests the former vice president took office after the resignation of the president. the united states continues to encourage maldives to work within an existing democratic institution to resolve poli

national bank where the transactions leading to its losses occurred, and we are responsible for the prudential supervision of the bank. in early april, informati

on monday the federal prudential regulators released a memorandum of understanding that clarifies how we will coordinate our supervisory activities to minimize unnecessary regulatory burden and decrease the risk of conflicting supervisory directives. our responsibility under the law unique among the federal regulators is to achieve even-handed and reasonable oversight of both banks and nonbank firms that compete in the same consumer finance markets. we take a consistent approach to examining both using the same procedures for the same products and services. in addition to mortgage lenders, services and student lenders we will finalize a rule to examine the larger participants in the debt collection and credit reporting industries as we develop our nonbank supervision program further. the second topic you identified for this hearing is my statutory role on the financial stability oversight council. as you know, congress designated the director to serve as one of ten voting members. the u.s. consumer finance market represents over $20 trillion in loans and deposits and hence it is centr

this activity and i think that would be actually a valuable complement to the capital and other prudential requirements of dodd-frank. >> thank you, mr. chairman. >> thank you. >> thank you, mr. chairman. mr. curry, the bloomberg article came out on april 6th. when did you have knowledge that there was a problem with this portfolio? >> the size and complexity of the portfolio as jpmorgan chase became clear to us at that point in time. after that, we began to ramp up our discussions with bank management and our presence. >> what day would that have been? >> i believe it is around the 9th when i assumed office. >> april 9th you were having extensive conversations with management about this position? >> that's when we became aware of the potential significance of the situation. >> do you have recollection of when your agency began to have some concern about this issue? >> it would have been around that same time when the articles began to appear. again, because this was not in the broker dealer, we wouldn't have had people focused particularly on that. >> again, when the articles about the lo

i agree with one point in the financial crisis inquiry commission report, and that is that the prudential regulation failed pervasively. i'd even at to that there's a new book out "the guardians of finance" it's failed chronically in doing that. so the one thing we have to understand if those two things alone could cause the financial crisis to be systemic, then that's all we need to explain it, and everything else will be a symptom of what happens when you get a crisis that bad. now, it all starts then with the housing goals. what are the housing goals? the housing goals were in the original '68 act. they were implemented first in the 1970s but fannie mae wanted no part of those housing goals and i can remember the arguments we had with them at that time to try to convince them they weren't binding anyway, that whatever they did, they already met the housing goals. but they were looking ahead, and in 1992 we passed the ironically named federal housing enterprise safety and soundness act which was more about implementing housing goals than it was about making these organizations more safe