sheila bair joins us now to explain more. good to see you. ank you so much for joining us, sheila. >> happy to be here. thank you. >> before we get to the stress test, and really where we are in the system, you're participating in an economic summit today hosted by the atlantic monetary and fiscal policy. what is left bolster the economy, based on what you're hearing and talking about at that summit today? >> well, i think it's getting better obviously. the employment figures are encouraging. and that's been sustained over several months now. that's positive. but housing is still a big question mark. the trade deficit is getting worse. i guess my sense is the economy is improving. i welcome that. but how sustainable is it, is another question. so i still think we need to be somewhat cautious here, especially with banks. they are stronger, too. but i think in terms of the distributions, the fed and regulators need to be cautious in making sure the capital positions remain strong. >> i've got to say, the stress measures were quite stressful. 13%

joining us now with more analysis on the banks and those stress tests, we are happy to have with us sheila bair, former chair of the federal deposit insurance corporation and now senior advisor at the pew charitable trusts. >> sheila, it's really great having you on the program. >> happy to be here. >> susie: i think the question that most people have, are banks most to normal? how you would you rate the health of the banking system right now? >> it's certainly stronger than it was in 2008. the cap sta capital cushions ar better. the sector is healing. uncertainties with the housing market in particular, but if the economy keeps improving, and hopefully it will, that should also strengthen bank balance sheets, and hopefully we'll get to a cycle where with the strengthening, there will be confidence to make loans and reinforce the economic recovery. >but there's still a way to go with the >> >> susie: a year after vestests you were concerned about banks issuing dividends and boosting composition. your warnings were object heeded and banks did raise their dividends, and now they're doing it again

that's sheila bair. sheila and ali velshi, please join me up here. ali shellvy, of course, is chief business koernd at cnn. sheila bair is the -- is now with pew, is the former fdic. very, very important voice during the housing bubble crisis. and what happened. and all i will say as i leave the two of them to have their discussion is that if ali doesn't mention this question about a bond bubble, one of you should. >> thank you, steve. i want as much participation as possible. so if somebody wants to ask that question, go ahead. i couldn't help but think when we were listening to larry lindsey and he kept referring to the sympathetic media and whether or not i was a part of that mess. i'm going to try to be very hard hitting. sheila bair, good to see you. we've had fantastic conversations today. and there have been a lot of digs, sort of people have been taking digs at the other side idealogically. but we've had no -- no knockout punches. we're hoping to get one of those from you. let's start by talking about the thing that i see newspapers all over

. >> i want to hear what sheila bair has to say about that. and meredith whitney was the first to call the dividend cut at citigroup. so long ago. so we'll see what she has to say about that. but you know, this transparency that we're talking about, the federal reserve is actually identifying the four banks that failed these tests. you know, it can go both ways. look what happened with met life last night, trading down. and you have to wonder if this action does impact these businesses going forward. a financial services company, not up to the standards, according to the federal reserve. interesting. >> you would think, rick, we were out of the fed's comfort zone where the yields are right now, yes? >> just asking the question puts me out of my comfort zone. to think that a government entity is looking at what's comfortable or not comfortable for investors. gets you down the road of how tricky it is going to be for the fed to maneuver, as asset changes and me rens moves, even as the economy, at a slow clip, does move. >> rick, everybody says d

he made reference to former fdic chairman sheila bair, who i think was an outstanding leader of the fdic. sheila told me two things before she left. that one, being chairman of the fdic is a tough job and i cannot vouch for that. the second thing -- and so she was right on that point. the second thing she told me with everything would be okay. before she left. that she wasn't quite as ray. [laughter] and some other things as well. but if nothing else, it has been an interesting and challenging experience and i think the role of the fdic during the course of this financial crisis burley has been a very important one and i think if i may say history will look back upon the performance of the fdic over the past three or four years then i think the performance will hold up pretty well. two things that i really wanted to talk with you about this afternoon. i want to take just a moment to talk about the condition of the banking industry. just earlier this week, tuesday the fdic released its quarterly banking profiles. i just wanted to share some of the results of that with you that with umno's

you made reference to former fdic chairman sheila bair who i think was an outstanding leader of the fdci. sheila told me two things before she left, one, being chairman of the fdic is a very tough job, and i can now vouch for that. the second thing, and so she was right on that point. the second thing she told me was, "everything will be okay," before she left. that she wasn't quite as right. [ laughter ] >> she didn't tell you about europe? >> and some other things as well, but if nothing else, it's been an interesting and challenging experience. and i think the role of the fdic during the course of this financial crisis really has been a very important one, and i think if i may say, i think history will look back upon the performance of the fdic over these past three or four years and i think the performance will hold up pretty well. two things i really wanted to talk with you about this afternoon. i want to take just a moment to talk about the condition of the banking industry. just earlier this week, on tuesday, the fdic released its quarterly banking profile, so i just wanted to sha

prior to her departure, sheila bair had this to say about this problem. she said banking agencies assessments of risks to consumers are closely linked with and informed by a broader understanding of other risks in financial institutions. placing consume procedure techs policies setting activities in a separate organization apart from existing expertise and examination infrastructure could ultimately result in less effective protections for the consumer. so if we're not able to mandate coordination between the cfpb and prudential regulators through changes in law, my hope is that this semiannual hearing before congress can at least serve for a platform for a discussion of the key concern that so many prudential regulators have on this issue and which we by past experience have learned the hard way is a big problem with bifurcated regulation. i yield back, mr. chairman. >> thank you. mr. bacca recommended for 1 minute and 15 seconds. >> thank you very much, mr. chairman and ranking member. i also want to thank mr. cordray for being here today. one of the bi

meltzer and my colleague here clyde crook, in this discussion of course we have sheila bair. we have laura tyson. larry summers. fred hockberg. i think i'm even missing someone there. gene spurling. yes. gene does not want to be forgotten, so gene will be here. and we will have this. but as a thank you to all of you as well, we've just decided to have a reception at the end with real drinks. and it's on us. i just felt like for those of you who are sticking this out with us, we want to make sure that you're welcome and join us up until that end. so i'll be back. without further adieu, please welcome my guests clive crook to have a conversation with allen meltze rerks. allen, thank you for being here. >> sure. thank you. [ applause ] >> well, this is quite a parade of talent that you've got unfolding in front of you. but i do want to commend this interviewee, allen meltze rerks. he really is one of the most eminent economic scholars in the world, an authority on monetary history, monetary economics, monetary policy and an author of a wonderful two-volume history of the federal

sheila bair, good to see you. we've had fantastic conversations today and there have been a lot of digs. people have been taking dig at the other side idealogically but we have had no knockout punches so we hope to get one of those from you. let's start by talking about the thing i see newspapers all over the place. obviously everybody is ingesting this information about the bank stress tests. we, because you were here today we decided to move up the results of the stress tests from yesterday. so now they're out. now they're out. when you and i talked about this on tuesday morning you suggested that not everybody was going to pass with flying colors. generally speaking it would probably be more good than bad and a negative result wouldn't necessarily mean that a bank is in trouble. i would suspect you would know that more than most people. give me your evaluation first of all of the stress tests. >> so the stress test was to determine what the banks equity to risk based assets in a very high stressed economic scen

shortly after that, an exclusive interview with sheila bair. next coming up on worldwide exchange, we're going to look ahead. investors will be keeping a close eye on comments from ben bernanke as he addresses the independent bankers association. stay with us. back. there's a pair of economic reports on the u.s. calendar today. the fourth quarter current account figures are out at 8:30 eastern time. also we get current account interests. fed chairman ben bernanke speaks to tin pendant community bankers association at 10:00 a.m. as well. however, the speech is via satellite and on tape, so not expecting too much there. meantime still with us is ryan gibb gibbon, partner and yents nor vig as well. i want to talk about the data we've seen, beside as what we saw from the stress tests, it's going be about growth how chairman ben bernanke goes forward. we need to see more positive data. we need to see the unemployment figure continue to come down. yents, do you think that's going be a reality? >> i think the important thing to keep in mind is where e

whitney telling us whether he's chanshe changing her tune following the banks' stress data, and sheila baires us her take on what the stress tests say about the state of the banking industry and we'll get the outlook for oil and natural gas prices. talk to the chairman and ceo of chevron, john watson joining us, coming up, we look forward to seeing you at the top of the hour on the new york stock exchange. mandy? >> thank you very much for that, bill. >>> this is straight out of darren rovell, we've got news on maddy square gua madison square garden has something going on. >> the stock is down, mike d'antoni the coach of the new york knicks have parted ways, from multiple reports led by yahoo! the, the knicks lost six straight ten games after linsanity, and the stock is moving down. right now the knicks are trying to get season tickets for next year. they are trying to sell them, they announced a 9% increase after a 49% increase this last year. all was seeming to do well with linsanity and everything else, and then they go on this skid, carmelo anthony comes back and now mike d'antoni is no

comments now from former fdic chief sheila bair talking about the economy and that event hosted by thed whether i was part of that so i want to be very hard hitting. good to see you. we had fantastic conversations today. there have been a lot of digs, people have been taking digs at the other side ideologically. no knockout punches. we hope to get one of those from you. let's start by talking about the same icy in newspapers all over the place. everybody is in jesting this information about the bank's trust test. stress test. we decided to move the results of the stress test from yesterday. now they are out. when we talk about the fund tuesday morning you suggested not everybody was going to pass with flying colors. generally speaking it would be more good than bad and a negative result wouldn't necessarily mean that a bank is in trouble. you would note that more than most people. giving your evaluation of the stress test. >> the stress test would determine what banks occasional common equity risk-based assets would be at a very high economic scenario of 13% unemployment and 13% drop i

sheila bair, thanks very much. always a pleasure talking with you. [applause] >> today the senate continues debate on a bill to help small businesses raise funds on the internet, and changes rules for them to go public. centers will hold a series of votes at about 11:30 a.m. is an including one we authorizing the export-import bank. its charter runs out at the end of may. live senate coverage begins at 10 a.m. eastern here on c-span2. top military commanders in afghanistan go before the house armed services committee today. john allen will explain recent comments in that country. c. live coverage at 10 eastern on c-span3. the nation's highest court begins oral arguments next week on health care law. the court is hearing several challenges to laws past two years ago. justices agreed to release audio on the argued each day and we will bring it to you at about 2 p.m. eastern on monday, tuesday and wednesday of next week on c-span3. c-span raider and at c-span.org. today is primary day in illinois with 54 republican presidential delegates at stake. will

you made reference to former fdic chairman sheila bair, who i think was really an outstanding leader of the fddic. sheila told me two things before she left. she said one, being chairman of the fdic is very tough job and i can now vouch for that. and the second, so she was right on that. the second thing she told me was, everything will be okay before she left. that she wasn't quite as right. [laughter] >> tell you europe? >> and some other things as well. but, if nothing else, it's been an interesting, it's been an interesting and challenging experience. and i think the role of the fdic during the course of this financial crisis, really has been a very important one and i think, if i may say, i think history will look back upon the performance of the fdic over this past three or four years and i think the performance will hold up pretty well. two things i really wanted to talk with you about this afternoon. i want to take just a moment to talk about the condition of the banking industry. just earlier this week on tuesday the fdic released its quarterly banking profile. i just wanted

prior to her departure, sheila bear had this to say about this problem. -- shiela bair said agenciesd by a broader understanding of other risks in financial institutions. place in consumer protection policy in a separate organization, apart from existing expertise and examination infrastructure, could ultimately result in less effective protections for the consumer. if we are not able to mandate coordination between the cfpb and financial regulators through changes in law, my hope is this some u.n. -- this semiannual hearing can at least serve as a platform for discussion of the key concern so many provincial regulators have on this issue, and which we from past experience have learned the hard way is a big problem with bifurcated regulation. >> i also want to thank mr. cordray for being here today. one of the biggest accomplishment contained in the dodd-frank act was the creation of the consumer financial protection bureau. finally we have a call on the beat whose sole purpose is to ensure american consumers are getting a fair shake in the marketplace. in the past four years, in has