we welcome former fdic chairwoman, sheila bair. thanks for coming in. no concrete plan how to shrink the fed's huge portfolio. does that concern you? >> i think it is going to be a challenge for them. overall i'm glad they're thinking about how to get back to a more normal interest rate environment and that includes somehow dealing with this massive portfolio they have amassed but i think they need to be very careful. i hope they look at conventional tools they have to raise interest rates before they start for raying into potentially new facilities. i think it creates potential instability. david: this may sound like simplistic question and it is but the answer is anything but sim policetic. how will they eventually raise rates? it is not like oil days when they literally raised rates. now there may be new mechanisms to do that. explain. >> traditionally they have done it through the open market operations which basically means they sell treasurys to get what they call the overnight fed fund rate up. whether they can do that, given the massive excess r

she village induced sheila bair. >> excellent. opportunity. the i'm honored to be moderating a panel that really needs no introduction. we have with us today the chairman of goldman sachs bank usa and the fed reserve bank of minneapolis. we also have sheila bair, the former chairman of the fdic and currently serves as a senior advisor. was ay, we have ray nater partner at his firm. he formerly served as a deputy chief counsel. i would like to kick off the discussion by asking each of our panel is to provide 10 minutes for opening remarks and the remainder will be devoted to a discussion followed by a few questions from our audience. the back drug for this panel is a seminal papers that were penned in 1982 titled "our banks special?" special?"nks we welcome your views. >> thank you very much. somewhat provocative agenda over the course of the day. i will deviate from my usual pattern and not be provocative. i probably will not succeed. all, i have made copies available someplace at here. 2010 imade available our think it was? me. stern succeede

suzanne will introduce sheila bair, gerry corrigan and ray natter. >> actually. thank you very much, con. things that opportunity. i'm honored to be moderating a panel that really needs no introduction. we have with us today gerry corrigan was the chairman of goldman sachs bank u.s.a., and the former president of the federal reserve bank of new york at the federal reserve bank of minneapolis. we also have sheila bair, who is the former chairman of the fdic, and curtl cursors as a senior ar to pew charitable trust. and finally we have ray natter was a partner at his law firm, and former served as a deputy chief counsel of the occ. so i'd like to kick off the discussion by asking each of our panelists to provide 10 minutes, that is a very brief amount of time, to minister opening remarks and the remainder will be devoted to a discussion followed by two questions from our audience. the backdrop to this bill is a seminal paper that gerry corrigan penned in 1982 titled "are banks still special." so jerry, of course it makes sense to kick off with you and we welcome yo

suzanne will introduce sheila bair, jerry caragan, and ray nadder. >> excellent. well, thank you very much, khan. thanks for the opportunity. i'm honored to be moderating a panel that really needs no introduction. we have with us today jerry coragan who is the chairman of goldman sachs bank usa and the former president of the federal reserve bank of new york and the federal reserve bank of minneapolis. we also have sheila bair who is the former chairman of the fdic and currently serves as a senior adviser to pew charitable trust. and finally, we have ray nadder who is a partner at his law firm, barnett, sivon & nadder and formerly served as deputy chief counsel of the occ. i'd like to kick off the discussion by asking each of our panelists to provide ten minutes. that is a very brief amount of time. ten minutes for opening remarks then the remainder will be devoted to a discussion followed by a few questions from our audience. so the backdrop for this panel is the seminole paper that jerry coragan penned in 1982 titled "are banks special?" it would make sense to k

. >> until july 2011, sheila bair was one of the government's top banking regulators as chairman of theal deposit insurance corporation. you just described it as pervasive. >> yeah. it is pervasive. it absolutely is pervasive. and it was just a matter of cutting corners, not spending enough money, not have any quality controls. >> although banks say the courts have been accepting their paperwork, that's changing as desperate homeowners countersue the banks over the document fiasco. this leaves houses unsold indefinitely, undermining the recovery. >> i'm very worried about, if this starts getting out of hand, the kind of impact it will have. >> these are lawsuits by homeowners... >> yes. >> who are being foreclosed upon saying-- >> or are in the process or have already been foreclosed on. >> saying, "prove it." >> yes, exactly. >> "prove that you own this." >> exactly. >> chairman bair thinks rotten mortgage documents are so threatening to the economy that the government should force banks to pay into a massive fund. but you think there needs to be a cleanup fund... >> i do. a cleanup fu

. >> is that core of party or -- >> saying a lot of same things sheila bair said. she is republican. melissa: another hurdle for the housing market, home price levels in dozens of cities will not achieve precrash levels for three years. erse doz and hamas in gaza. more coming up. you make a grea. it's been that way sincthe day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take alis if you take nitrates for chest pain, as this may causan unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immiate medical

sheila bair thinks we have. tim geithner thinks perhaps we haven't. this is a terribly important question and one that is worthy of good, strong, bipartisan consideration and debate and with that, mr. chairman, i yield back the balance of my time. >> gentleman yields back. the chair now recognizes the gentleman from indiana, mr. stutsman, for one minute. >> thank you, mr. chairman. and for calling this hearing and thank you witnesses for taking the time to speak with us today. as we will hear today, dodd/frank has failed to end bailouts and failed to lift the economy as the president promised. in practically every way dodd/frank puts regulators ahead of taxpayers and consumers. still no one believes the economy has been made safe from future bubbles or bailouts. what the lenders in front of us >> we'll now turn to our witnesses, each of whom i will introduce briefly. first we welcome mr. del wilson, chairman, president, and ceo of the first state bank of san diego, texas. next we welcome mr. anthony carfang, a partner at treasury strategies, a firm th

sheila bair was saying our system's far too opaque. would you agree with that? let me just, give the story of the tylenol scare back in 1982 that probably most of you will remember. there were four bottles of tylenol that were sold in an undisclosed manner in the sense that there was no safety seals back then. so somebody put in cyanide in these four bottles of the e he knoll --ty he knoll, and within a few days seven people died from eating this stuff. and around the world there were 30 million bottles. so just four bottle of tylenol that people knew were bad or poisonous, and this could have been others, nobody knew for sure because there was no safety seals on the containers. around the world, places like thailand, everybody decided that stuff's too dangerous to buy. that market just dropped like crazy. there was a run on tylenol, if you like. $100 million market went to zero. now, what did johnson & johnson do? they just, they threw away all the old tylenol, they recalled it, and they repackaged it with safety-sealed containers. that's why we can't open anyt

sheila bair, who i happen to trust on these matters, says she thinks that sort of institution can be resolved. we're not going to know until we see one of these institutions hit the skids. so i guess what i really want to do is continue this line, because it's a useful line of analysis and ask mr. frank, if i have more time, i'll open it up. what i'm really interested in is we've established tools for regulators to both monitor, very aggressive tools, to change the nature of the businesses of systemically important institutions and a whole set of procedures to resolve those institutions in the case of them running into trouble. that may or may not be adequate. anyone who says they know the answer to that, of course, is not being honest. so my question is, i'll start with chairman frank. what more could we and should we do to make sure that we never see a repeat -- >> a central question, one of the things we should do is this. you know, fed chairman said what he thinks will happen if we have another crisis, congress will vote to give them money. no congress can bind a future congress.