chairman dodd, ranking member shelby, members of the senate banking committee, thank you for the opportunityto testify before you today. first let me apologize for the snafu with getting the material to you late and appreciate your indulgence on it and to commit to you it will not happen again. over the past several months, the obama administration has been working to manage an historic crisis in the auto industry. president obama inherited an auto industry that lost 50% of its sales and over 400,000 jobs in the year before he took office. two companies, general motor and chrysler had received substantial loans from the prior administration and were requesting substantial additi additional assistance that only the government could provide. without this assistance, both of these companies faced uncontrolled bankruptcies and almost certain liquidation which would have cost significant job loss with a ripple effect throughout our entire economy. even so, president obama was unwilling to put additional taxpayer dollars on the line unless these companies and their stakeholders were willing to fun

i will take a couple of minutes for an opening statement and onto senator shelby. let me say the bottom line for me. getting out of the automobile industry would not be soon enough for me if it were to happen yesterday. my hope is, what ever we like or dislike, i want to see as get out of this business as quickly as we can. i would start any discussion or debate from that point of view. it can't be soon enough and that matter. on the state of the american automobile industry, today's hearing is unique because for the first time, we will be hearing directly from the administration officials who are giving assistance to america's auto industry. failure of any one of detroit's's big three poses a systemic risk to the economy. from suppliers, to car dealers, some 20,000 people in my home state of connecticut alone are directly employed by the auto industry. it is for these reasons that president bush and president obama march and the resources of our government to preserve countless american jobs and to reestablish a domestic auto industry. there buckling under a hundr

. >> senator shelby? >> thank you, mr. chairman. mr.allison, thank you for taking on this responsibility. i wish you well. what assurances have you been given from secretary geithner and the white house that you and the white house that you will have sufficient@@@@@@@ @ @y should manage its investments in gm and chrysler? and how long do you believe treasury will be a shareholder of gm and chrysler, if you want to? >> thank you for the question, senator. >> i must say to you that i have not been involved directly in the auto initiatives. and at this point that would have been presumer erpresumtuou confirmed. >> but you plan to get involved. with both elbows. >> absolutely. i assure you i'll get involved in all the initiatives under the financial stability program. >> well, your number one goal here is to get confirmed. we all here under that. aig, the management of aig, what steps do you believe need to be taken, have you thought about this, for the federal government's oversight of aig? in other words, you got a big bear and you can't

senator shelby points out some issues that the committee could not ignore in the midst of this. i've talked to the secretary of hud about the nominee and what steps they might be willing to take to provide some assurances to the committee dealing with respa and other matters. i don't believe forcing this on the committee -- i'd like the consultation advice of my colleagues as well on a matter like this rather just bringing up a matter -- i always like on these matters where we can to have a bipartisan support for a nominee. and particularly there's an outstanding issue. we're all aware of what can happen. it sounds fine but six months, a year from now something pops up and obvious questions, well, you had some idea this might happen. why did you go forward? i'm not sure that should always be the standard but nonetheless that's sort of where we are, bob, on this one. do you have any comments on this, mel? >> i'd just say i'd talked to the hud secretary and i think he'd gone out of his way to alleviate those. and base on what i know about the case and we're going to do more dilige

i want to go back to comments that both senator schumer and senator shelby made. senator shelby raised the point of, like your analogy, we got this bear, aig, and we don't know what to deal with it. and senator corker and i when secretary geithner was in recently -- >> senator warner, let me apologize. i did not see bob corker walk into the room. my colleague from tennessee. >> i was about to say good thins and you cut me off. >> no, my apologies, and my apologies to my colleague from my colleague from tennessee. senator corker? >> i'll let him ask his first question and come back. >> he thinks so highly of you. very smart of you, senator warner. >> i'm learning, mr. chairman. i'm learning. but we pressed -- we were very concerned and i think a lot of folks were very concerned about the whole aig situation. we were concerned about the fact that 100% payoffs with the counterparties with aig, and no haircut taking and secretary geithner said he didn't have authority and now there's a precedent set and consequently even if we tried to give him authority perhaps it co

i appreciate that, i'm sure my colleagues have questions on that line but let me turn to senator shelby to met mr. bloom, following up on senator dodd's question a minute ago. how many years using the government will be involved in general motors and chrysler as far as their investment? would it be your judgment three years, five years, 10 years, 12 years or what? give us some kind of judgment. you say it is not going to be quick to get out. >> yes senator derrin as i indicated the legal framework in which we are which is a private company in an ipo with a certain amount of runway time, senator, at this point we do not have the specific targets in terms of years. the factors that will influence that will be many. how the market is doing, how the capital market is doing. we are going to be a very large shareholder in a company and so as you know for a large shareholder to be selling shares can be disruptive to the other shareholders so we want to be mindful of that. at this point the president's direction is to get out and his order is as soon as practicable. but beyond that we do not ha

we have had extensive conversations with dick shelby, the republican chairman of the banking committeee is very anxious to work together with us on this. i think barney has described it very well. there has been some debate as to how we achieve these results, but we're all seeking the same results. to that extent, i welcome the president's remarks this morning. i want to emphasize that while there are other matters dominating the attention of the senate right now, the senate banking committee is working on drafting ideas and proposals in consultation with barney and the white house on deep -- on the part -- on the proposals the president made this morning. >> [inaudible] >> they have a great -- they have threatened us with a severe chastening. this is very pro market. you have investors who do not want to invest. that is not good for the economy or the businesses. you have a great majority of perfectly responsible people under competitive prices who want to cut corners. this is in an effort to avert the kind of problems we have had before and to fully reinvigorate this market and away

before adjourning, senator shelby has one question and i have one question. my question is for doctor montgomery. i feel like you're sitting there alone. >> going to. >> i'd like to get back quickly how we get out. we are in the week, the taxpayer, the government is in, big time. we know this. how much thought went in just roughly from your judgment went into getting in to gm and chrysler, and how much thought when, how do we exit? how do we get out and i think the term was used earlier could this be an economic vietnam where it's easy to get in, hard to get out. >> i think that's a very fair question, senator. and again, i want to try to talk about our process. there was a tremendous amount of thought and debate about whether or not an equity stake was the proper vehicle. but again i think when you walk down a decision tree, if you decide that you're going to invest in the company because today's capital markets are not going to provide capital for this company, the need of the company for capital is not determined by us. it's determined by an analysis of th

as soon as senator shelby comes in, i will give him a chance to make any opening comments. then we'll get to some questions for you if we can. let me begin by welcoming everyone here. it's no overstatement to suggest that this position for which you have been nominated, that of assistant secretary for the office of financial stability within the treasury department, is among the most important this committee will consider in this term of congress. you have inherited a giant task, none bigger than overseeing the troubled assets relief program. the office of financial stability was created as part of the emergency economic stabilization act. congress believed that the size of the program, $700 billion at the time last fall, required the full-time attention of skilled professionals to oversee and manage purchases made under the program. at first, some resisted the call to establish such an office, arguing it would create a layer of bureaucracy within the treasury. but i and many of our colleagues including senator schumer, senator tester who were deeply involved in the formati

. >> t bone shelby with hair. >> i could bring it back. >> maybe a throw-back day. >> it's got -- he's got a nice afro with a stash to match up with it. >> and we have a nice picture with sammy. do you think you can rock that hairdo. >> no. >> can you describe to us the difference between a jerry curl and a normal afro. >> with afro you put afro in it and pick it out. jerry curl you have to put jerry curl in it. >> which gets more lady. >> i would say the afro. >> now you had a jerry curl going. which do you think would hold more women. >> dam, i look good here. >> you do look good. >> i have to go for a curl with the girls. >> jerry curl or afro? >> i don't know. i think that afro is a little bit easier to get out of bed and come to the park with. jerry curl takes a little bit of time. >> how long did it take you to do your hair? >> actually about five hours. >> five hours. >> jerry curl, it looks like he used a quarter gallon of hairspray. >> do you ever use soul glow. >> for sure. >> now jerry curl or afro? >> curl. >> why the curl? >> because you look like billy d. williams. >> jon

dick morris, ann coulter, michael steele, karl rove, newt gingrich, thomas so, victor davis hansen, shelby steel, charles kroutheimer, michele malkin, fred barnes and so many others. let's give thanks to them for not giving up and staying the course to bring an end to this false prophet, obama. that's what i said pretty much this morning. and now i have the honor, you know, the honor to be with you and to introduce such such a wonderful array of great people who i'm so honored to be, you know, able to introduce to you tonight. since 1976, orrin hatch has served the people of utah with distinction and honor. in the senate, we can -- and by the way, i met orrin hatch, and isn't he -- i mean, you know i'm in the movies and sometimes people see me they say gee, you're taller that inthought you were or you know, whatever it is. or you're not as old as i thought. i say that. but really, they never say that. but when i saw orrin hatch because i'd only seen him on shows you know where his face is on television and he's usually addressing very serious subjects so he's very, you know, has a very ser

these proposals reflectchairman dodd and frank along with senator shelby and rep backus will be meeting with me throughout this process. they met with me earlier this year to jump-start the discussion of reform. i have met with regulators this morning. leaders, academic experts, and the broader public. careful balance. i have always been a strong believer in power of the free market. it has been and will remain the engine of america's progress, the source of prosperity that is unrivaled in history. i believe the jobs of best created not by government but by businesses and entrepreneurs who are willing to take a risk on a good idea. we want to restore market in which we reward hard work, responsibility, and innovation, not recklessness and greed. is in the system, and to those awarded. we say to put in place rules promote innovation while discouraging abuse. we seek to create a framework in which markets can function freely and fairly without the business cycles suddenly bring the risk of financial collapse. we want a system that works for businesses and consumers. there are those who sa

john shelby is telling him that. don't get doubled up. get a good primary lead, secondary lead.t. >> gary: nick has grounded ino tour double plays this year -- four double plays this year. markakis will foul that one away. wright will give chase, and there will be no play, and a 2 count on markakis. orioles trying to take the series by winning game 3 as these two teams have split 6-4 games in the first two. victory for the orioles would give them a successful home stand, 5-4, before taking off for philadelphia for the three game series there facing three left handed starters. dave trembley noting there wil be five lefties in the next six games against the orioles. which means he'll be, there will be a lot of players coming and going. >> jim: double switches, he ws talking about the opportunityo use some of his bench players. >> gary: markakis goes down swinging and hernandez put t right where he wanted it that time. >> jim: let's go back to the sequence. remember, he struck out the first time. check out this pitch. that was a b

if it is, we'll discuss it but i also have to connect with senator shelby on the floor. i really need to go participate in this vote. >> why don't we go and make the vote. >> let's come back and make sure we're within our appropriate parliamentary parameters. if we could have a read on that when we come back, then have further discussion. >> for your consideration, this is a copy of the underlying bill and each of these tabs represents the finance committee jurisdictional issue which is in the underlying body. so -- >> don't show that to them. >> it's not like we're plowing new ground. >> mr. chairman, could i also add for the people that are going to look at this, the base bill, the underlying bill, on page 203, 204 and 602, there are references to the social security act. on pages 35, 101, 103, 107, 209 and possibly 210, the internal revenue code. clearly, these are areas that on the face would be the jurisdiction of the finance committee so if we're going to selectively choose which members get to participate in it, i think it's a little unfair to senator isakson. >>

. >> john shelby you're looking at. markakis singled his first time up. that one ripped into right field. >> there's another question i don't have to answer for a while either about somebody asked me about necky. nicky's going to hit 20 home runs and have 100 rbi's when it's all said and done. the guy has balance, uses the whole field. >> he's got like now 25 hits to left, 26 hits up the middle and 27 to right. we always talk about players. i got to imagine he's one of those guys you really don't have to worry about too much. >> i talk to him when i think maybe he's pressing like everybody else, he's human, but nick markakis, i know the term is overused a lot, but nick's a very special guy. he's unassuming, he doesn't get all caught up into a lot of things, he just likes to play. >> aubrey huff had a single and an rbi his first time up. each team four hits now. >> you guys got my sign so i can't give any signs. i told juan before he get on here, we kind of got some verbal things. >> so you have verbal things going. >> we won't give away the home run sign.

congress, including those who were here today, chairman dodd and chairman frank, who along with senator shelby and rep backus will be meeting with me throughout this process. they met with me earlier this year to jumpstart the discussion of reform. these reforms are also drawing on conversations with regulators, including those i met with this morning, as well as consumer advocates and business leaders, academic experts, and the broader public. in these efforts, we seek a careful balance. i have always and a strong believer in the power of the free market. it has been and will remain the engine of america's progress, the source of prosperity that is unrivaled in history. i believe the jobs are best created not by government but by businesses and entrepreneurs who are willing to take a risk on a good idea. i believe that our role is not to disparage well but to expand its reach, not to stifle the market but to strengthen its ability to unleash the creativity and innovation that still makes this nation the envy of the world. that is our goal, to restore markets in which we will war -- reward har

the issue was raised by senator shelby about aig. and on may 20th the issue came up dealing with creditors and counterparties. counterparties. and obviously a lot of the attention was focused on bonuses and so forth. and at the same time there were announcements about the creditors and counterparties that didn't get anywhere near the same attention. while the value of aig stock has declined, obviously, creditors and counterparty were getting paid 100% of value. the issue that many of us raised here is who is doing the negotiating? we're an 80% owner and here counterparties are getting 100 cents on the dollar. doesn't sound like a great negotiating position it seems to me, given the exposure of the dollar amounts. what i'd like to know -- i realize you're not in that job yet, but what tools do you feel the government needs to negotiate the best terms for taxpayers? do we need to give you any additional tools? if there's something we should be doing, i need to know about it. if there's something you need to negotiate better, then we li

did the invention, the sheer genius that transformed the 1908 model t ford into the 1968 shelby cobra0. in the course of one single human lifetime goal of speeding tickets. [laughter] compare this to progress in the previous mode of transportation. worse production, course design -- unchanged for thousands of years. and you know when it comes to creativity with the horse and did the research on this one riding, i lifted up. you know and nobody thought to put a stirrup, nobody thought to hastert from a saddle until about 580. the strip was invented. people have been riding horses for thousands of years and its effect until 500 a.d. to invent this. where they put their feet? it automobile design and engineering have proceeded at the same pace as course design and engineering we would be powering ourselves down the road by running with both of our feet stuck through a hole and the floor like fred flintstones although it may come to that with the 2010 at obama mobile. [laughter] but most important of all, most important of all was the car's fulfilled the ideal of what america's founding f

john shelby has done a good job about that. i asked him about that. he says you always know where your hand is where you see it. it's in your field of vision. it gives you better hand-eye coordination and made adam aware you want o'keep your glove to a point where you have a sense of where it is. don't threat get up over your head where you lose that glove in your field of vision. he's done a great job separating his body from his glove, but keeping it in his eye line. >> jim: runner goes. pitch is swung on and hit deep to left field. back it goes! it's gone! cody ross with a two-run home run and the marlins grab the sleed. -- grabt lead. buck mentioned he's been wearing out the orioles in this series and keeps it going. that's his 13th home run. >> buck: only the second home run that rich hill has allowed. it's a fastball. inner part of the plate. cody ross is all over it. he had a wig night -- big night last night. there's a no doubt home run. he just tosses the bat aside. it's deep into the blue seats above the scoreboard in left field. he had thre

. >> let me start there and turn to senator shelby. >> mr. bloom, following up on senator dodd's question a minute ago, how many years do you think the government will be involved in general motors and chrysler as far as an investment? would it be your judgment three years? five years? ten years? 12 years? what? you've got some kind of judgment. you say it's not going to be quick to get out. >> yes, senator. as i indicated, the sort of legal frame work in which we are, say a private company and then an ipo presents a certain amount of runway period. senator, at this point, we do not have a specific target in terms of years. the factors that influence that will be many. how the market is doing, how the capital markets are doing. we are going to be a very large shareholder in a company. and so as you know for a large hair shareholder to be selling shares could be disruptive. at this point, the president's direction is to get out, his phrase and order to us is as soon as practicable. but beyond that we don't have a defined time frame. >> but put

shelby has to get out of the way. dave trembley and the orioles looking to bounce back. >> buck: good effort in the ninth inning as they scored 3-2 to tie it at 6-6. then the leadoff walk in the bottom of the 1th, wild pitch with a base hit led to their guy teeth -- defeat. >> jim: scott holding 2-2 on huff trying to get that run in. a ball hit to third. bonifacio gets the hop and gets it across. nolasco works out of a jamment two on, none out. orioles fail to score. the fans coming in to see the birds. no score heading for the bottom of the first. (crowd cheers) (music plays) witness a piece of golf history. the travelers championship. june 22nd through 28th. at jeep, we build skyscrapers. we build fish finders. we build battery chargers. we build base camps. we build transporters. we build sanctuaries. we build the technologically advanced jeep grand cherokee. come see what we've built for you. >> jim: orioles a chance to in the until the top of the first. breezy here. the lineup. chris coghlan, emilio bonifacio

. >> senator shelby? >> thank you, mr. chairman. mr. allison, thank you for taking on this responsibility. i wish you well. what assurances have you been given from secretary geithner and the white house that you will have sufficient ought tautn your decision making for this program? >> senator, first of all, i understand my responsibilities. if i'm confirmed for this position. and my role is to carry out the treasury secretary's directives as well on this program. he and i will be consulting frequently. i know how concerned he is about making sure that these programs are successful. i see him daily about these issues. and those contacts will probay grow even closer if i am confirmed. >> what's your view, if you have one, at the moment of how the treasury, which you'll be right in the central role there, should manage its investments in gm and chrysler? and how long do you believe treasury will be a shareholder of gm and chrysler, if you want to? >> thank you for the question, senator. >> i must say to you that i have not been involved