congressman sarbanes, thank you for your thoughts on that. as you all know, and you got to walk around as we call it the yard here at the naval academy today, this is an historic site. we started here on october 10th 1845. this year will be entering in to our 170th year of being a partner here with the city of annapolis. it started out as ten acres. today we represent 338 acres of the upper and lower yard. it's a relatively small campus but one of which we are very proud. as congressman sarbanes mentioned this morning, if you were here early this morning you would have seen the two roads behind me where we are doing our testimony here, we are covered in two inches of water from a nuisance tide, sometimes called a king tide. this is with no rain that happened over the last two days. this is not an unusual occurrence here. you can see the remnants of it still on mcnair road behind me. this is something we deal with. mr. chairman, distinguished members of this committee thank you for the opportunity to appear before you today on behalf of the un

as congress sarbanes said you have to rally the community behind this. we sent out postcards to 4,000 people came to this event and at a council meeting not typically people show up and we have one person show up on the budget and we have 140 people that surprised up on this and that surprised us. it is a multi nation initiative that the city has to develop a plan and implement a strategy to reduce the risk and loss of private and public sector properties most vulnerable to the effects of climate change. this is an 18 month planning effort between the city state, federal agencies, private and nonprofit partners. that is one of the things i've learned in my short time is that anything you do, you need to build partnerships and relations ships and we can't address flooding without help from congress and naval academy and partners as well. in the survey we asked who is responsible for reducing flood potential in the historic district? 32% said it was the local government. 32% put it on the state. the good news is, we all have been doing work to address nuis

with respect to climate change to my friend john sarbanes is the elevator on a lot of issues working together on protection and to encourage young people to appreciate the young outdoors the more they understand their environment they will understand to protect that. they give for your leadership. paul hill helps a yorkers realize there part of the of watershed. we understand what a precious resource three have but as mr. sarbanes indicated it extends over multiple states the ratio of landmass to water is huge that is why it is a challenge to protect the bay. i wish all members of congress were at the same level of understanding as the american people clearly are and we have science deniers in the united states congress who can steer evidence in the face to still put their head in the sand. the good news is the american public is ahead of the game but is here and now in the form of disruptive whether events increasing cost to the american public and they recognize putting lives at risk. so they are able to see with their own eyes what the data is indicating. we all know the cost of d

sarbanes asked you about the economic value of the bay. the bay obviously has huge value to the state and to the country and to the world beyond just the economic value but the economic value is huge. it's essential to the state of maryland, in terms of tourism, in terms of the watermen, and the rock fish and the oysters. as i look at your report, you point out that there is, based on the inner governmental panel on climate change model, the waters of the bay could potentially rise to -- by five degrees celsius by 2070 to 2099. now, i'm not a biologist but i guess there are just some things you can't mitigate if you get into that kind of territory, like whether or not certain species survive or not. i'd be interested if there has been an analysis on what the impact to the bay resources would be if the temperatures really went up to something like five degrees celsius. >> thank you, congressman. you know, water temperature is one of the most basic measurements that science takes, and it's something we do on all of our educational field trip

congressmen sarbanes: our first witness is the mayor.e was elected in november of 2013 as the most recent mayor of annapolis, and the city's first republican mayor since 1997. as i indicated earlier, when we get outside of washington, where sometimes the politics can be aggressive, and out where people live, we find republicans and democrats working together on important issues like the ones we will be discussing today. the mayor is a board member on the and annapolis and anne arundel county visitors bureau, he is on the legislative committee where he has leadership positions. he has rallied the people of annapolis around this very important issue, recognizing the threat of title flooding to the city of annapolis. -- of tidal flooding to the city of annapolis. this morning we had an event which will punctuate the topic for today's hearing. we're looking forward to the vice admiral walter ted cardinal does carter became the 66 attended -- he is a native of burrillville, rhode island. he graduated from the academy here in 1981. he was desi

sarbanes, he had been only out of office for one year when this started. this was back in 2008. that's when they broke ground on this $140 million center, but in 2013 they found flaws in the concrete. they figured at some point they were going to tear it down and rebuild it. but they were able to retroactively fit rebar and cables in there to reinforce the concrete. they were worried about concrete falling down once the heavy buses started rumbling in. that work is complete and today they're going to let ride on drivers and metrobus drivers, no passengers, just the drivers drive through here and get used to the twists and turns. they will train others on how it will work. when will it open? we don't know yet. live in silver spring, derrick ward news4. >>> today we expect terry mcauliffe to nominate judge jane roush to the state supreme court. her no nonsense face may be familiar to some of you. she presided over the most high profile cases that includes the trial of sniper lee boyd malvo. right now she's the judge in the charles severance trial. >>> and what could impact the car

including such landmark laws that were held for stopping abuses sarbane oxley, just to name a few. but washington failed to prevent the financial crisis, in many ways, it led us into it. washington promoted bad loans supported by fannie mae and freddie mac to meet the affordable housing goals which were put on steroids. let's remember that more than 70% of the sub-prime in alt a mortgages that led to the crisis. >> we break away to take you live to the justice department and a news briefing with loretta lynch. >> we're here today to announce that a federal grand jury in south carolina has returned a 33 count indictment against dylann roff charging him with federal hate crimes and firearms charges for killing and attempting to kill african-american parishioners at emanual church in charleston, south carolina because of their race and in order to interfere with their exercise of their religion. as set forth in the indictment, several months prior to the tragic events of june 17th roof conceived of his goal of racial tensions and seeking retribution for perceived wrongs he believed af

if you limit things like corporate, provisions in title ix in sarbanes-oxley and eliminate the williams act as well which is a constraint on the market for corporate control. i think if you do that or at a minimum change those to optional. before you tell me that only been possible there's some provisions in title ix to optional with the notion of a mandatory in the picture to get number two, he recognizes the right of firms to provide for mandatory arbitration, shareholder claims which i think the federal arbitration act already provides but the sec hasn't got the memo and they still refused to accelerate your registration if you have such a provision carlyle found out recently. but i think you need federal recognition of that right. thirdly, federal codification of the internal affairs doctrine as a minute msha on the sec from using its discretionary regulatory authority to impede innovation state corporation. you do those three things you get a much more robust state of chartering system. and then i think when you combine that with a very exciting world of crowdfunding that is coming

. >> congress sarbanes? >> mayor pantelides you mentioned you had a town hall recently and the turnout was very large 150 people. i'm curious what are the residents saying to you? i know they talked about who should take responsibility local. but what's the basic input that they're providing to you? and how are they projecting their own willingness to be -- help be responsible for the solutions? i'd be curious the perspective you've got there. >> i think it's a very interesting town hall. there are so many key players that are involved. you have people from the insurance company that obviously have an interest in updated fema maps. you have the residents who are concerned about their property. as the doctor eluded to if it's going to rise this much where should they live? i think they want a sense of what's being done and it's been rewarding to tackle this challenge and i'm glad it has gotten attention in the local media. for far too long it's an issue that has been worked on but not really talked about. now

why couldn't it have sarbanes-oxley was a bipartisan bill. why didn't god or frank attract in a thoughtful leaders like you to make it a different product? >> welcome you have to ask -- talk to them. i cannot climb inside their innermost thoughts. what opposite suggests itself is the democrat party was enjoying a rare super majority status in the house, innocent at the time. because of that they did not need a single republican vote to pass their agenda and they were not interested in doing something that the whole of the american people might be able to embrace. they had a super majority by the party might enjoy once or twice in a century. i recall the cynical words up now chicago mayor rahm emanuel never let a serious crisis go to waste it allows you to do things that otherwise you could not do. a lot of dodd-frank was a grab bag wish list from the left that have little or nothing to do with the root causes of the financial crisis. and let us remember i'm sure peter is well aware of this as he was on the commission. the commission report on

over criminalization in the majority opinion but in the descent of yates is of destruction of the sarbanes-oxleystice kagan said that is what the majority is upset about imf said because i know the guy can rewrite the statute but there is a sense on two different occasions to ask the question a 20 year sentence for what? the power to force a plea bargain from the innocent person is unacceptable. >> that is a remarkable turnaround for the chief justice because in 1993 after he left his job he wrote an op-ed for my newspaper to discuss the aggressive position of the first bush administration so to help states fight off criminal defendants who have these high-powered aclu attorneys and was concerned the clinton administration might not as aggressively support states trying to defend criminal convictions to keep the onslaught from overwhelming the federal justice system. is opinion may have changed or maybe the world change but it did strike me those comments to go far beyond to express regarding criminal defense rights. >> a good term for religious liberty for opinions like hobby lobby. what do you

sarbanes asked you about the economic value of the bay. it has huge value to the state and the country and the world beyond just the economic value but the economic value is huge and is essential to the state of maryland in terms of tourism and the rockfish and the oysters. as i look at your report, you point out that there is, based on the intergovernmental panel on climate change model, the waters of the day could potentially rise -- the waters of the bay could potentially rise i five degrees celsius by 2070 22099. i am not a biologist, but there are some things you cannot mitigate if you get into that kind of territory, like whether or not certain species survive are not. i would be interested, if there has been an analysis on what the impact to the bay resources would be if the temperatures really went up to something like five degrees celsius. mr. baker: water temperature is one of the most a sick measurements that science takes as something we do on all of our educational field trips. any time anything near that level of increase, le

why couldn't it have -- sarbanes oxley was bipartisan. why didn't dodd or frank attract enough thoughtful leaders like you to make it a different product? >> well, you would have to talk to them. i cannot climb inside their inner most thoughts. the democrat party was enjoying a rare super majority status. in the house, in the senate at the time. and because of that they did not need a single republican vote to pass their agenda, and they were not interested in doing something that the whole of the american people might be able to embrace. they had a super majority that a party might enjoy once or twice in a century. i recall the words of now chicago mayor rahm emanuel. never let a serious crise gisis go to waste. it allows you to do things you otherwise wouldn't have been able to do. a lot of dodd/frank was a grab bag wish list that had nothing to do with the causes of the financial crisis. and let us remember, peter is well aware of this. the commission report that reported on what the root cause of the financial crisis were came out aft

not adopt basel 2 because they would have been more highly leveraged and i attribute it to senator sarbanes and senator shelby saying don't implement this thing you will end up having less capital which gets me to a different theme of one of the themes of dodd frank is to hand ever more discretionary power to the federal reserve and you talk about a string of regulatory failures. >> shoal's paradox which was named after my friend professor bernie shoal is no matter how far the fed follows things up and no matter how gigantic its blunders it always gains more power and authority and it's historically true and dodd frank is the last example. >> j.w.? further comments? >> sure. i want to touch on another issue that i see in dodd frank perpetuating a problem that long precedes dodd frank which is the exclusion of immaterial disclosures and i mean this to imply to both disclosure and to lease payments disclosure for oil development and conflict minerals and minerals developed in the congo. they finance the bad guys and they finance the good guys and they finance people completely uninvolved in t

before the crisis because they would have been even more highly leveraged and i credit senators sarbanes and shelby beating the fed upside the head, don't implement this thing because you will have less capital and that gets me to a different team of -- one of the teams of dodd-frank is handing more power to the federal reserve and you talk about a string of regulatory failures. >> shoals paradox named around bernie shoal no matter how much the fed fouls things up and how gigantic its blunders with each crisis it always gains more power and more authority and it is historically true and dodd-frank is the last example. j.w., further comments? >> sure. i just want to touch on another issue i see in dodd-frank perpetuating a problem that long preceded dodd-frank which is the inclusion of immaterial security disclosure disclosure. i mean to lease payments disclosure for oil development or oil development or in the congo, they finance the good guys, the bad guys and people completely uninvolved in the war and ox fam decided we should stop purchase of complex minerals in the west and there is

but why couldn't the bill be a compromise bill, why couldn't is -- sarbanes-oxley was a bipartisan bill and why didn't dodd frank attract enough thoughtful leaders like you to make it a different product? >> well you would have to talk to them. i cannot climb inside of their inner most thoughts. what obviously suggested itself is that the democrat party was enjoying a rare supermajority status in the house in the senate at the time and because of that they didn't need a single republican vote to pass their agenda and they were not interested in doing something that -- that the whole of the american people might be able to embrace. i mean they had a supermajority that a party might enjoy once or twice in a century. i recall the cynical words of now whichg mayor rahm emanual, never let a serious cite is go to waste. it allows you to do things you other wise could not do. and dodd frank was a grab-bag wish list from the left that had nothing to do with the financial causes of a financial crisis and let us remember and i'm sure peter is well aware of this because he was on the commission, t

system more competitive if you eliminate things like corporate governance provisions in title ix, in sarbanes-oxley, and i think you have to eliminate the williams act as well which is a constraint on the market for corporate control. i think if you do that or, at a minimum, change those provisions for optional for firms to opt into. there are some provisions in dodd-frank that are optional like the notion of a mandatory independent chairman. number two you recognize the right of firms to provide for mandatory arbitration of shareholder claims, which i think the federal arbitration act already provides and court interpretations of that act already provide, but the sec hasn't gotten the memo, and they still refuse to accelerate your registration if you have such a provision. carlyle found that out recently. but i think you need some federal recognition of that right. and then thirdly a a federal codification of the internal affairs doctrine as a binding constraint on the sec from using its discretionary regulatory authority to impede innovation in state corporation law. if you do those three things,

they would have been even more highly leveraged, and i attribute some amount of credit to senator sarbanes and senator shelby beating the fed upside the head and saying don't implement this thing, you will end up having less capital. which gets me to a different theme of, you know, one of the themes of dodd-frank is to hand ever more discretionary power to the federal reserve. and you talk about a string of regulatory failures. >> shoals paradox, which is named after my friend, the professor, is no matter how much the fed fouls things up and how gigantic its blunders with each crisis it always gains more power and more authority. and it's historically true, and dodd-frank is the last example. j.w. further comments? >> sure. i just want to touch on another issue that i see in dodd-frank perpetuated, perpetuating a problem that long precedes dodd-frank which is the inclusion of immaterial disclosures in securities disclosures. i mean this to apply to both conflict minerals disclosure and to lease payments disclosure for oil. minerals developed in the congo they finance the bad guys, they fin

you had sarbanes-oxley, you had very good acronyms. but we had more and more regulation. it wasn't a lack -- it wasn't deregulation that caused the crisis. it was dumb regulation. dumb regulation by the government that was intenting and cajoling and mandating financial institutions to loan money to people to buy homes that they couldn't afford to keep. what a tragedy. what a tragedy to put somebody in a home they can't afford to keep. that's the cause. fannie and freddie at the epicenter and the dodd-frank bill was totally silent on the issue. totally silent on the issue. and people suffered. people suffered. i still remember my friends on the other side of the aisle said let's roll the dice a little on this this affordable housing goal of fannie and freddie. well, the dice got rolled and the american people lost and we had the great financial crisis and now they're doubling down, even more regulatory burden dragging down our financial institutions, making us less stable, taking away our freedom and prosperity. and that's just wrong. . it is time for taos replace this law