it is my firm view that the sec should retain all the authority it currently holds. that concept is set forth in time of 10 of the consumer protection act. it must continue toversee and authorize the fcc. looking at all reliabl industries, the commission has peormed commendably over small staff and with avere powers. along with the bipartisan commissi of approximately 1100 dedicated emploes, spread out across three bureaus, competitn, perhaps -- consumer protection, and the bureau on economics. this body has done an enormous job. the onll agency that has existed throughouthe years that is to protect the amerin set consumer from the ravages we have undergone in this recent recession. although its experti is deep and broad, the statutory tools under the sec at consist ofn antiquated and cumbersome form of rulemaking. it had anemia legislative authority. consumers will respect and honor -- it is critical for this bo to support and defend [unintelligibl rulemaking and enforcement tool. that is why the sec must be awarded rumaking authority under the ministry procedur act

the funding mechanism for the sec. there were all of these failures where they did not see the bernie madoff situation and the institutions that failed there. we are one to reward them for that. they will be self-funded and not go through the normal appropriation process and oversight in the future. they can get as large as they want to without any more oversight. that is what they sec has always wanted. to be rewarded this behavior? i do not think so. this behavior?e host: california? caller: it sounds as if you are saying the new administration is the cause for all of this. you know as well as everyone else, it started many years before this. guest: i did not say there has been a lot of the regulation over the last dozen years. -- deregulation over the last dozen years. there has been a lot of miss regulation. i have been here for seven years. i have been trying to fix that since i first came here, trying to regulate it in a good way. i want to get rid of it so that we do not have this potential systemic risk going f

we already have the fed, the sec, dot is, and the ncua, just to name a few. that creates more aircraft, confusion, and cost for ponsumers. why not address the real problems with these agencies rather than creating aanew one. -- a new onn? the current structure is clearly flawed. uncoordinated regulation led to the lack of enforcement. the federal reserve had the authority to update regulations for mortgages and credit cards and fill to do so. many federal agencies were charged -- and failed to do so. many federal agencies were charged to pick up the slack. had two regulators. they had conflicting mandates and missions. as a result, fannie and freddie with unfettered, backed bad mortgages, and laid the foundation for the mortgage meltdown. this regulatory reform bill will repeat this mistake in the name of consumer protection. it will have two regulators, including a new agency, writing regulations for regulators to enforce. 3 stronger, more nimble, and more coordinated regulators need the authority and resources to do their job, exercise strong oversight, and

in august of 2007, the sec did a report on moody's. it was part of a larger report which they d on all rating agencies. and i'd like to actually enter that sec report on moody's into the record. it's, i beeve, tab 1. so if the staff would please note. but in thatreport, the sec noted a number of items. they said that the ratin had suered due to the increase in the number and complexity of deals, just the sheer volume. they said as a corollary to that that staffing had not kept up with the revenues d the number of deals. and in a sense there had be a conveyer belt moving faster and faster. as a no revenues and thiis not the sec but this is my notation, revenues at moody'sent from 600 million in 2000 in 2.2 billion in 2007. profit marns grew from 26% -- but they foundut the sec found staffing shortages. they said deals we pushed out the door. and that investment analysts were also involved in fee negotiations and that ratings had affected business interests. i'm going to ask you, mr. kohinsky, do you think those are fair characterization

it's like an sec filing. you're not going to come to market without it. if they tripled their fees, i would pay it. there are certain things that are required as far as securities. and in this country, an important part is to have a standard and poor's and moody's rating attached to them. >> has movies ever lobbied congress to enshrine in statute of offer ratings? >> note, just the opposite. we are repeatedly going back at least 15 years about the risks of including ratings and regulations and offering up support for the support -- the zero -- the elimination of the use of ratings and regulation. >> they are required our regulations. but if they were not, we still would have to have them. they would be different in years from now or 20 years from now. all that sort of thing, we would not be able to issue a bond without a rating. >> from the long-term value perspective, the internal controls were not of great concern to you. >> i yield the gentleman an additional two minutes. >> i am not in the position to evaluate the internal workings. no, we on a specif

i don't think it is been a systemic failure. >> have you looked at the sec public reports? >> no, i have not. >> mr. mcdaniel, much can be id about the tone at the top. can you just tell me what outcomes and results you value most from your company? >> simila to our markets and made a few minutes ago, obviously iant to have a very successful business. and i believe the way to have a successful businesses to have high-quality products and services, in thisase, ratis and related research. it does nothing for our business to focus othe short run ad cut corners. and i said, that is why it is so deeply disappointing to of had the experience that we've had in the mortgage related securities areas. >> part the product and service, what one value would you buy a the most part mark >> it relates to the long-term value of t firm. first of all, i think that it is. and we have adjusted our compensation program over time in order to try and high-quality products and service with compensation. our senior management team, the top seni most individuals in our firm, now have as part of thei

the sec and cftc. no single regulator in our view has the ability to see the risks that may arise across the system because of fmu activity. there is no required coordination between agencies that have a role in overseeing fmu's. there are no consistent risk- management standards. if regulators provide different standards, as we have all painfully learned, leaving gaps in the regulation. again, i say to my colleagues, i think this is an important area. i know the house has rejected having title 8, but i would say, and again i'm hesitant to say this because you have to hear from the other members, this is one of these areas where we have a lot of consensus. so we would like to work out with our house counterparts an area that we think it's critically important. i have taken a long time and i apologize going through all that. i see mike warner, my friend from virginia, is here. -- i see mark warner, my friend from virginia, is here. you have been so instrumental, along with bob corker, in this, and of co

the sec failed, you named the regulator that was involved, and a number of them. other than over-the-counter derivatives, can you think of a major area of of regulatory oversight that dictates major changes in our system? >> i would say that going beyond the derivatives, addressing the problems of disguised leverage, andinding leverage, which is really tough, doing it with ratios is not the answer. not the sole answer. leverage is what gets people intorouble. we were in berkshire that way. when people stretch and that it rewards for it, they are inclined to stretch more. you had an earlier panel about the objective of return on equity, well, of course it does diffent things. the easiest way to jack up an equity is leverage. addressing it wisely is better. but i think that is the most important thing in the regulatory world. >> are you surprised that post- enron we could have off-balance sheet financing that wld of been perhaps at the core of this collapse? >> i don't know that it is necessarily at the core but i was certainly prop -- certainly surprised which is j

people before we create more bureaucracy, they want to know that thh bureaacracy that is here, the sec and others, are doing their job. i think mary schapiro is doing her job. for markets and capitalism do not work if it is abused. i am not sure that capitalism, free enterprise, and all of these thingssi believe in -- look at what happened. maybe we ought to let the government protect us and come in and doing more management. they may not say thaa and they may ot know what they are advocating, but we need strong consumer protection. >> you expect your republicans -pto support thii bill if it remains on the same path. do you worry politically in the fall about what the votes in the opposition of the bill will meen for members running for reelection? is this a political concern for you are the republican party? >> that is a good question, silla. in 2008 when i oted for tarp, people in my district were saying in 1919 to one that they were opposed. -- they were saying 99 to 1. it was a near-death experience, i can tell you. it is the gift that keeps on giving. i just got past my primary. i

he said the sec has an obligation to move forward with an open public comment pro or reprocessed to ask hard questions. >> i think what has created uncertainty is actually discussion of trying to regulate the internet and common carrier rules, the old phone monopoly rules. it was ashley settled for years, and this is something they gained a lot of traction in the clinton administration. they teamed up the process for the classification for cable broadband in 2002. it went from the clinton administration into the bush administration and went from there. in the course of that, broadband proliferated wonderfully. we see great innovation and investment. it was called the edge of the internet, devices and computers and applications of software. that is exploding, unfettered by regulation. we also want to see innovation within the networks of the internet. the age and the core are converging from the consumer's perspective. they do not care how the services are delivered, as long as they have competition and innovation and lower prices that they can enjoy. that is what is happening now. what

the sec's -- success of these hearings, including the g-20 here in toronto, is a tribute to canadian leadership. i also want to think my fellow leaders for the sense of purpose they brought to this summit. that g-20 is now the premier forum for economic cooperation. we represent east and west, north and south, advanced economies and those still emerging. our challenges are as diverse as our nations, but together, we represent some 85% of the global economy, and we have forged a coordinated response to the worst global economic crisis in our time. in london last year, we took unprecedented action to avoid an even larger economic catastrophe, to put our economies on the path of recovery, and to begin recovering our financial systems so that the crisis, like the one that we were emerging from, never happened again. in pittsburgh, we went further, moving beyond the old economic cycles of boom and bust, by committing our nations for growth that is balanced and sustained as well as specific financial reforms. a bold action has succeeded, and in the united states, we are committed above all

licence which was the economic life blood of the country -- of the company would be revoked by the sec. the response to that was we are going to continue doing what we do and when our records were subpoenaed by the re-election committee and a lawsuit, mrs. graham tos i am going to take possession of your notes. >> can you see the picture of furred getting out for limousine going into the d.c. jail? e point is, she was willing to take the responsibility for the institution. does that situation exist tay? i think much less so. i think also we have a media environment in which we are losing to some extent because of the pressu of speed, manufactured controversy, gossip, the web partly, which i think is a great reporting platform but we also need as removed to these platforms to bring to them the standards of the desk of the old jrnalism. >> very quickly in rebuttal, i am saying they're very good examples of journalism and t spirit is there. if you -- if you used to have a staff of 200 and you now have a staff of 100 which is what happens to a lot of newspapers, they cannot do the digging

i went through sec records and was looking for what addresses, what houses or buildings were the biggest source of campaign cash to any candidate. is that available to everyone? >> it is the agency that watches over campaign contributions. anyone can go to the website and try to look up is donating to which candidates. >> you say the paw family in california. somebody tipped you off that this was happening. >> right. >> would that be somebody who was against hillary clinton? >> yes. there is nothing wrong with getting all the tips you can get from someone who has an agenda. everyone has an agenda. as long as you know what their agenda is and as long as the facts are right, that is a story you can write about. you have to be very careful in getting kids and not carefully checking them out and writing stories that turn out not to be true. -- getting tips and not carefully checking them out. reporters always need to be careful. i fully vetted it. i figured out the top addresses that are giving money. one was some wealthy manhattan property owner who had given thousands of dollars. he was on

we already have the fed, the sec, dot is, and the ncua, just to name a few. that creates more aircraft, confusion, and cost for ponsumers. why not address t real problemsith these agencies rather than creating aew one. -- a new onn? the current structure islearly flawed. uncoordinated regulation led to the lack of enforcement. the federal reserve had the authority to update regulations for mortgages and credit cards and fill to do so. many feder agencies were charged -- and failed to do so. many federal agencies were charged to pick up the slack. had two regulators. they had conflicting mandates and missions. as a result, fannie and freddie with unfettered, backed bad mortgages, and ld the foundation f the mortgage medown. this regulatory reform bill will repeat this mistake in the name of consumer protection. it will have two regulators, includg a new agency, writing regulations for regulators to enforce. ronger, more nimble, and more coordinated regulators need the authority and reurces to do their job, exercise strong oversight, and rain in excessively ris

. >> as this moves through congress and the sec, the communicators will continue to cover it. >> of course, the lottery is a -- is prescribed by law. if demand outpaces supply, you have to do a lottery. >> i think this is the civil rights issue of today and is not just about race. i mean, it is about class. retsof sunday, the lottery producer on the family she chronicled hoping to attend the harlem success academy and the anti-charter schools sentiment facing that school. >> last month, supreme court justice john paul stevens and supreme court nominee elena kagan talked about the legacy of justice stevens as he retires this summer. the event took place one week before president obama nominated ms. -- justice stevens as his replacement. -- nominated ms. kagan as justice stevens replacement. this is half an hour. [applause] >> what do you say when you introduce a man who has been coming to these events for more than 50 years? [laughter] everything that is interesting has already been said. likely, not -- everything that is not interesting has been said, too. [laughter] i will be brief. john

and the related sec and part of this is that you are meeting with hu jintao, you're sending a clear message to north korea as a consequence. how do you look at this response so far? is it strong enough? 2 cent a message to north korea? -- to send a message to north korea? >> that we answer the second one first. i was very blunt. this is not an issue where you have two parties of moral equivalence to our having an argument. this is a situation in which you have a belligerent nation which engaged in provocative acts against the other. i think it is very important that we're clear about that. now, i am sympathetic to the fact that north korea is on the chhnese border. they have a security interest in not seeing complete chaos or something that could have a significant impact on them, so i think the united states and the international community should be mindful that this is in china's backyard, so when they adopt a process of restraint, i understand their thinking. but i think there is a difference between restraint and will fall blindness to consistent problems. my hope is that president hu w

fdic amount and raising the rates of the reserve of the fdic and let me double check -- i apologize --secing attributes. that leaves us with $14 billion that we have to raise to meet the house paygo requirement. we propose to do this and we work with the ways and means committee. they have assigned to us for these purposes money that comes from increased exchange trading of derivatives contracts and as $1.3 billion. the rest we authorize that the fdic -- this is not to go to the general revenue but to offset the cost of this bill -- to use what we originally used for our fund. we are authorizing the fdic over the five-year period to assess financial institutions over $50 billion in assets, heads bent -- hedge funds over $10 billion. there is a risk matrix which says that the ones who are involved in riskier trades will pay more. we will get to an amount of about $15 billion. the cbo gives you -- you have to raise one and 1/3 to deal with revenues. the fdic is mandated to raise up to $19 billion. we don't believe they will have to go that far. that is about a little less than $4 billion pe

sec commissioner talks about reclassifying broadband and the use of public broadway airwaves for emergency purposes. this press wednesday, george osborne announced that the bank of england would oversee financial regulation in britain as a departure from the previous system. mr. osborn laid out a plan to restructure the financial system in a speech to the financial community in london. he is joined by the lord mayor of the city of london. he will formally release the new budget this week. this is about 40 minutes. >> the right honorable lord mayor. [applause] >> mr. chancellor, the governor, my lords, ministers, fellow alderman, ladies and gentleman. welcome to mansion house and a special welcome to you, counselor, on this occasion, your first mansion house speech to the financial-services sector and the wider economy. we are always happy to welcome chancellors, especially british chancellors, to this house. chancellor, i hope you have already detected this evening all large measure of good will from the bankers and merchants, and an equally large measure of expectation. you've already beg

pending financial reform legislation help to solve this problemm where did treachery, the fdic, the sec, and the cftc expect to find these super-regulators who are competent to call out systemic risk that others have missed? even though systemic regulators have timely call about risk, how will they convince other regulators, the global financial -- the global financial community and congress that the worries are significant and could be a great cost to taxpayers and the financial community? why it former federal reserve chairman paul volcker in an interview state that the resolution authority provided in the proposed financial package is a "workable proposition for anything short of the biggest banks." does chairman volcker believe it will be all but impossible to liquidate in an effective manner? does he believe that tarp, too, will be required? why did treasury released a press release and pine that the tarp program has been profitable, -- implying that the tarp program has been profitable, even though the congressional budget office expects taxpayers to lose approximately $109 billio

sec commissioner talked about reclassifying, media ownership, and the use of public airwaves. that is tonight on "the communicators" on c-span2. >> clarence thomas on the prospect of a new justice. >> it changes the whole family. it is different today than when it was when i first got here. i have to it meant you grow very fond of the court that you spend a lot of time on. >> with confirmation hearings for atlantic taken coming up, learn more about the highest court in c-span's latest book, "the supreme court." it provides unique insight about the court. it is available in hardcover and also as an e-book. >> the keyspan group recently traveled to plaquemines parish in louisiana. -- d. c-span the cruet recently traveled to plaquemines parish in louisiana. >> i am under the weather. how're you doing? >> god bless you. >> i came here to see you. >> you should not have. you need to rest. >> high. how are ya, baby? we probably have not met. >> let's go up and i was sure you what we are doing. i am not so little anymore. i knew i was going to shut down soon. >> i am amazed to have g

licence which was the economic life blood of the country -- of the company would be revoked by the secng to continue doing what we do and when our records were subpoenaed by the re-election committee and a lawsuit, mrs. graham to us i am going to take possession of your notes. >> can you see the picture of furred getting out for limousine going into the d.c. jail? the point is, she was willing to take the responsibility for the institution. does that situation exist today? i think much less so. i think also we have a media environment in which we are losing to some extent because of the pressure of speed, manufactured controversy, gossip, the web partly, which i think is a great reporting platform but we also need as removed to these platforms to bring to them the standards of the desk of the old journalism. >> very quickly in rebuttal, i am saying they're very good examples of journalism and the spirit is there. if you -- if you used to have a staff of 200 and you now have a staff of 100 which is what happens to a lot of newspapers, they cannot do the digging and in-depth reporting bu

we must insure that there is effective coordination before the -- between the sec and thh f[unintelligible] we need to ensure that banks are not speculating through derivatives activities. i hope we can adopt a ban on proprietary trading. we also have to ensure a strong compatibility for credit rating agencies. ttey include title 9 of the senate bill and we have to work to make sure these are effective in preventing the excess of reading offcredit agencies. i want to commend the chairman kantor ski -- kanjorsky. we will be in better shape if we move closer to the house bill. we have to ensure that there is an effective consumer watchdog. there is presumption that this somehow will interfere with business. my sense is that a good consumer protection is good business and if we can provide good consumer protection, we will enhance business, not detract from it. we have a lot of work to do. i ook forward to working with you to make sure this leeislation is a significant step forward. we can bring together the best parts of both legislation for a bill that we will be proud of and the american p

pending financcal reform legislation help to solve this problemm where did treachery, the fdic, the sec, and the cftc expect to find these super-regulators who are competent to call out systemic risk that others have missed? even though systemic regulators have timely call about risk, how will they convince other regulators, the global financial -- the global financial community and congress that the worries are significant and could be a great cost to taxpayers and the financial community? why it former federal reserve chairman paul volcker in an interview state that the resolution authority provided in the proposed financial package is a "workable proposition for anything short of the biggest banks." does chairman volcker believe it will be all but impossible to liquidate in an effective manner? does he believe that tarp, too, will be required? why did treasury released a press release and pine that the tarp program has been profitable, -- implling that the tarp program has been profitable, even though the congressional budget office expects taxpayers to lose approximately $109 billio

exercise their own rights to divest from companies investing in irng's energy sector -- in iran's energy sec term of the act explicitly states the sense of congress that the united states should support the decisions of state and local governments to divest from these firms and clearly authorizes divestment decisions made consistent with the standards of the act. elsewhere, madam president, in the act and the conference report, the legislation, is a provision cracking down on the international black market weapons trade which rogue countries such as north korea and iran have long exploited. under this act, the united states will identify countries that are allowing sensitive u.s. technology that can be used for weapons of mass destruction or terrorism to be transshipped into iran, and it will force these countries to cooperate in establishing appropriate customs, intelligence gathering, and trade restrictions. if they refuse to cooperate with the united states, the act requires the imposition of very severe export restrictions on those countries. the act establishes a very strong, new bankin

pending financial reform legislation help to solve this problemm where did treachery, the fdic, the sec, and the cftc expect to find these super-regulators who are competent to call out systemic risk that others have missed? even though systemic regulators have timely call about risk, how will they convince other regulators, the global financial -- the global financial community and congress that the worries are significant and could be a great cost to taxpayers and the financial community? why it former federal reserve chairman paul volcker in an interview state that the resolution authority provided in the proposed financial package is a "workable proposition for anything short of the biggest banks." does chairman volcker believe it will be all but impossible to liquidate in an effective manner? does he believe that tarp, too, will be required? why did treasury released a press release and pine that the tarp program has been profitable, -- implying that the tarp program has been profitable, even though the congressional budget office expects taxpayers to lose approximately $109 billio

no we bailed out the chinese bondholders and sec are retear paulsen said, the chinese may not lend us money. we'll sure need the chinese to lend us money if this bill passes because there's a derivatives section in here, now, we have a letter that mr. peterson -- chairman peterson produced that says, this doesn't affect end users, but it's a letter. the truth is, we were in conference last week when we fought this out. and we voted for an exemption for end users and the democrats voted against one. and we've been told in the past 48 hours, 72 hours, by groups reich the international swap and derivatives association that this bill will cost businesses $1 trillion. $1 trillion. and that's capital and requirements to raise cash and it doesn't matter whether they trade in derivatives or someone does it for them, someone has to post that capital and that goes through and is an expense for that commercial company. if you take $1 trillion out of the economy suddenly, sure, you are going to have a crisis like this bill anticipates. and this bill says, if there's such a crisis, that -- chairma

mary schapiro of the sec is a strong supporter. mayor shapiro, elizabeth warren, and sheila bair are all strong supporters of this bill. there are a number of important things in the bill. a fiduciary requirement for municipal advisers said the we do not give the kind of problems we have all seen. all those are very important. i am prepared to make compromises. for those who worry about is getting too far, the conservative party prime minister of canada said over the weekend that with this bill america takes the lead in financial regulation and the rest of the world will follow. on the tarp, what it says is this. i prefer the original way. what cbo is saying is this, money repaid to the tarp goes into the treasury and to have made a profit on the big part. what the cbo is saying is that if you spend the remaining on allocated tarp money, you will lose some of it. you will not get it all back. cbo is a wondrous institution. i am often puzzled by it. i do know that my colleagues have a tendency to love it when it agrees with us and n

sec commissioner mcdowell talks about reclassifying some broadband services, media ownership, and the use of public airwaves for emergency services. tonight on "the communicators" on c-span2. topics at today's state department briefing included an official statement on the gaza diplomatic quartet, and united states' role in the limit -- the middle east peace process. they talked about the importance of the u.s. japanese alliance. the of ongoing work of the u.s. expert group on the base relocation plan, and experts to lighten the impact on the people of okinawa. they also talked about regional issues, including the need for a strong response to the sinking of the ship, and international issues, including implementation of resolution 1929. the secretary and foreign minister will see each other next month. the united states welcomes the announcement the special united nations of a tour on the special human rights in the dprk. united states hopes it will be granted access to north korea to observe conditions inside the country and hold direct discussions on human rights issues. the united

. >> i would like specific information and i would not have to like to receive that from sec filings, so he could deliver it personally. >> we will do so. i have already filed. >> think. the new will be able to deliver it to me. -- thank you. then you'll be able to deliver it to me. >> my compensation is set by independent directors. my arrangements regarding ceo of united have not yet been negotiated. that is a process that will go through both continental's human-resources committee and the compensation committee of united airlines. the amount of compensation will receive has not been determined. >> what is your present compensation? >> i received no salary whatsoever, sir. i have waived that until continental is profitable. i am also not eligible for a bonus because of my salary. >> stock options? >> i have no stock options, sir. >> you are not receiving any benefits? >> i participate in a long-term performance program, the payout of which is dependent upon the amount of profit sharing we share with employees as well as the stock price. >> thank you very much. thank you very much,

does this have anything to do with with the sec tried to open the bandwidth for?hat high range of band width does cause cancer. military equipment has never meant to be friendly to whoever it is being used against. it just makes me think of an issue of profiling here. it is not ok for law enforcement, but the military is already doing that. that belongs somewhere else. not here. guest: i understand the privacy concerns. i am not aware of any health concerns with the technology. that does not mean that maybe there are not, but i personally am not aware of that. there are a lot of things they can be used for that would not be what you think of as military uses. they have used them to spot forest fires when there are just starting said they can target resources. there are tornadoes researchers then went to send them into certain kinds of weather conditions so they can develop a better understanding of what causes tornadoes, how their cause, and so forth. they want to use them to map, geography, so there are all kinds of non-military uses as well. host: birmingham, al

the senate bill which would say that when selecting rating agencies, they should be selected by the secwhat kind of radical surgery, had it been performed early enough, would have helped in the sense that the spreading agencies would not have enabled this flood of toxic mortgage securities? >> as the chairman, i hate issue are pay. we pay a lot of money and we have no negotiating power. >> i deeply resent the model myself. >> it makes for a wonderful economic model but as a practical or model, i have no negotiating power. i need a rating. it is required in many cases. if they say that it is $1 billion and i say it could be 900,000, there is no guy on the street. that is the nature of that. if you go to something other than user pay, it gets carried tricky. if i will buy a $10,000 municipal-bond, she will hear the ratings someplace published. >> united labs is a nonprofit model. you do not have the profit pressure. consumer reports does it. is this a broken model? if they wanted to rate bonds and people would accept them, i suppose it could happen. it would require a fair the large -- to

and then going and what the sec it cut and we will attempt to get that as close to the top of a lower marine riser package as we can. hopefully get it as perpendicular to the pipe as we can. we want to do that with two options. we have a top cap, a much tighter siegel, a large rubber gasket that goes over the top to ensure minimum amount of oil leaks out. if we do not get that, we will get another defies over it. we want that first option if we can do it. that would depend on the results of that second cut, that time and wire cut. -- the diamond wire cut. after that, we want to take the oil to the surface, and ticket to the shore by tanker or barge. as we move to containment, we introduced risk factors that we need to be aware of. what we cuts -- once we cut the pipe this afternoon, the technical group that works with me estimates that we could see during that period before the cap goes on a 20% increase in oil flow. we've discussed with british petroleum mitigation measures as we move forward to try to mitigate the impact. the fact of the matter is that there will be a period of time

the sec is on the surface, where the oil comes up in large quantities and can be dealt with effectivelyhrough mechanical skimming and in such a burning. we all know about the recovery on score -- on the shore, but the emphasis has shifted to the area between the shoreline and out about 50 miles. all rely several ways, this spill has disaggregated itself. we're no longer dealing with a monolithic spill. we have an aggregation of hundreds or thousands of patches of oil that are going a lot of different direction. we have to adapt to meet that threat. when this operation started, we were controlling all skimming and burning operations out of the incident command post which has responsibility for the area where the well as that. in the last week, we have shifted control of skimming assets to the commander and the incident command post in alabama, responsible for mississippi, alabama, and florida. we of ashley detached a task force to work for him to push out 50 miles offshore and find these smaller patches and deal with them before they get to shore. this is an adaptation to the changing ch

there are public report filed with the sec, because they were holistic companies. the people who know nothing would assume what they read, they could see that the 2,003rd 2006, the market share decreased 50%. they were not involved in the subprime is. they may 30-year mortgages. the loans that caused the crisis were all adjustable-rate mortgages financed by wall street for do it too is not until late 2006 when president bush put a new person in charge veiny -- fannie mae the country wife actually went to fannie mae and said that if you do not start buying some of our loans and we are not going to give you any of the prime loans to d. host: we will leave it there. philadelphia on airlines for republicans. what do you think about the financial regulatory bill? caller: yes and no. only because we do not need it. we did not needed 30 years ago. if people look in the rearview mirror, the inflation we had during the 70's and what they chose to do with the credit industry so they could make these loans. the credit industry would be able to charge higher interest able to c

corporate rigid corporate governance reform rules promulgated by the sec and the federal reserve.those much more pervasive reforms will do more than what i am doing. >> i am a professor at the school. you mentioned the difficulty in calculating the present damages and the unknown future. don't you have a similar dimension in clements -- it claimants? you might have a fisherman today that is fine, or is in trouble next year. how do you account for that? >> you have to sit down and offer that fisherman -- mr. fisherman, you have shown us economic loss models that give you $83,000. we are going to tender a check to you, not only for the economic loss that you have suffered to date, but what we think is it their projection of what you will suffer in the future and we will give you not $83,000, but $149,000. in return, we want a full release so that you cannot come back later and claimed that $149,000 should have been $249,000. or that $149,000 was only $99,000, and that would be bp coming back. the challenge, and you know this, the challenges to come up with a prediction of economic l

television licence which was the econic life blood of the country -- of the comny would be revoked by the secresponse to that was we are going to continue doing what we do and when our records were subpoenaed by the re-election committee and a lawsuit, mrs. graham to us i am going to take possession of your notes. >> can you see the picture of furred getting out for limousine going into the d.c. jail? the point is, she was willing to take the responsibility for the institution. does that suation exist today? i think much less so. i think also we have a media environment in which we are losing to some extent because of the pressure of speed, manufactured controversy, gossip, the web partly, which i think is a great reporting platform b we also need as removed to these platforms to bring to them the standards of the desk of the old journalism. >> very quickly in rebuttal, i am saying they're very good examples of journalism and the spirit is there. if you -- if you used to have a staff of 200 and you now have a staff of 100 which is what happens to a lot of newspapers, they cannot do the diggin

many exper say that lebanon th its deep sec theien struggles is a bellwether for the balance of powernle et. hezbollah's activities have a direct pact on broader.s. intests in theregion, includin inspirimincy, thatening regnaltability ancomplicating prospects for peace settlement between israel and the palestinians. finally, we will continue policy opons for the united states and others to strenhen the leba government so that it canully control its territory. as we meet here today, hezbollah is stronger than it's ever been. politically and, o course, militarily. and its growingtrength poses a threat to stability in the reon. against the backdrop of rising tensions in the region, it's important this committee and the subcommittee conct a thorough examination ofse issues. duri prime minister hariri's visit to washington last month, president oma reaffirmed the ited states' commitment to strengthening lebanon's soveignty and indepeence. lebanon is key front line for pro-wen moderates who are battling advocates of e syria/iranesistance model. leban's southern froier is one o the most volat

where did treachery, the fdic, the sec, and the cftc expect to find these super-regulators who are competent to call out systemic risk that others have missed? super-regulators who are competent to call out systemic risk that others have missed? even though systemic regulators have timely call about risk, how will they convince other regulators, the global financial -- the global financial community and congress that the worries are significant and could be a great cost to taxpayers and the financial community? why it former federal reserve chairman paul volcker in an interview state that the resolution authority provided in the proposed financial package is a "workable proposition for anything short of the biggest banks." does chairman volcker believe it will be all but impossible to liquidate in an effective manner? does he believe that tarp, too, will be required? why did treasury released a press release and pine that the tarp program has been profitable, -- implying that the tarp program has been profitable, even though the congressional budget office expects taxpayers to lose approxima

>> it is an issue of how we can make the sec and pot, house with a weekend -- second cut, how smoot week make it. -- smooth we can make it. we want to optimize that and put eight top cap on it. we can put something like a top hat over it, which is wider fitting, but you have increased chances of oil coming out on the side. it is a question of how much precision we can bring to it. next question? the next? >> the next question comes from abc news. [unintelligible] >> sorry, we had a bad connection. i'm not sure i understood the question. >> i am just trying to know how soon we will note if the top cap procedure has failed. >> we will know that as soon as we finished the cut of the package, and there is a pause while they deal with the diamond wire saw that it's been at stock partially through the pipe. we will know later on this afternoon. >> your next question comes from dow jones. >> has oil reach the panhandle of florida? >>>we have no reports of oil on the panhandle of florida. we have reports of tarballs and sheening, but that is the extent of the reporting in the last 24 hours. >> y

plug regulatory gaps and streamline our regulatory structure, yet we still have the fed, the fdic, the sec the cftc, and the occ, and most of them will expand in size, power, and scope because of this legislation. these bills add new letters to the alphabet soup. so much for streamlining. more often than not, this reflects a series of deals made by the executive branch, along with the financial existing regulators who failed to do their jobs during the last crisis. the bill i think we are considering is filled with undefined terms, leaving us with failed regulators to ddtermine whether a company is "a threat to the financial stability of the data states" or or is "in danger of result" and is eligible for of the special proceedings. these are just two of the vague and undefined terms. the most egregious example of why this legislation has to do with absolute neglect of any serious treatment of the government-sponsored enterprises as we know fannie and freddie, the of gfc's were integral players and the collapse of the housing market that precipitated fear, panic, lack of trust, aaa ratings,

. >> sec commissioner robert mcdowell talks about broadbent access, media ownership, and the use of airwaves tonight on "the communicators" on c-span2. >> a look now at a conversation with michael kinsley. large of the "atantic wire" here to talk about the politics of the day. i want to start with president obama's management of the tools bill and get you thoughts. guest: i see you have a column here this morning. one of his clients was [inaudible] -- one of his points. he has gotten health care, financial reform, four more times than bill clinton got. he deserves more credit. and the rector made another good point about why -- because we over invest taupes and executive branch and particular, and government in general -- a conservative point, obviously. but about our expectations, this oil spill is a good point. the president cannot do much about an oil spill. i think that obama has had a very impressive first year. host: you do? guest: especially health care. clinton triejust as hard and could not manage to get it. host let me read a little from ross' piece. liberals had hoped obama's elec