chairman and ranking member shelby and members of the committee. thank you for conducting this hearing today and for giving me the opportunity to offer a few comments on an outstanding nominee, roy woodall. nominated to the member of the financial stability oversight council. when he asked me to be with him today to introduce him i said i would be honored to introduce him because we go back a ways. i first got to know him in the year the sound of music won academy award for best picture and the first tv episode of star trek was broadcast. in a what it cost to send a letter first-class than? $0.05. that might seem like 100 years ago. not quite but it was. 45 years ago. i first met roy woodall in 1966 when he was appointed commissioner of the kentucky insurance environment. i was working in the nebraska department of insurance at the time. over these years i've followed his career closely. we kept in touch and have many common friends. as we all know the dodd-frank law calls for independent insurance expert to make sure the insurance viewpoint is ack

i'm shelby lynn, reporting from atlanta. >> mrs.ford's funeral is tentatively scheduled for friday in palm desert. after another service in michigan, she will be buried next to her husband at the gerald ford presidential museum in grand rapids. >>> well, it is described as nearly perfect. the first day in space, for the last mission of space shuttle atlantis. and the one problem that cropped up that has the crew on the ground chuckling. >>> and royal recreation in southern california. celebrities among the hundreds watching prince william play for charity in a polo match. in e near >>> well, chances of drizzle along the coast increasing, fog and cooler temperatures. i have the full pinpoint forecast coming up next. ,,,,,,,,,,,,,, maryland -- where president of the >>> two f-15 fighter jets intercepted a small plane near camp david in maryland where president obama is spending part of the weekend. the north american aerospace defense command says the plane was out of radio communication. the fighter jets directed it out of the camp d

shelby?> honestly the thing that i've learned, the thing that i'm taking away prosecute this most is that the story is that of struggle. actually have a light lining around them. everything has a fire basically. everyone that we're meeting has a positive outlook. >> the stories we found of struggle have so much strength. that's been one of the things that's been eye opening for both of us. >> absolutely. >> when we were in baltimore, it was the first day of our trip. and we met women who were single moms living one of the more rough areas of baltimore in the neighborhood of druid heights. one of the women we're interviewing invited us back to her neighborhood. >> when is the last time you heard about like someone you know getting shot or robbed or -- >> murdered? last week. >> we got to see what it's like for her living a daily life in an area where she doesn't feel safe to walk around with her children. yet, she has decided to overcome the external environment and believe that it's her inter

senator shelby has a couple -- >> i feel at home here today. i count nine of my former colleagues here. >> a few observations. congressman frank and i have sparred over issues over a number of years. i agree with him that there is a difference between managed risk and speculation. i think we agree on that. speculation will cause people to get into trouble. managed risk will help people. as far as fannie mae and freddie mac, the congressman knows when we were in control here and i was the chairman, which pushed hard for a reform of fannie and freddie. we got it out of committee. we pushed hard, we will continue to do that. i do not know what is going on in the house. i can tell you, we -- sooner or later, we hope to do something substantive with fannie or freddie. we recognize they are the only game in town as far as -- >> i remember that in 2005 and 2006. as i remember, your poinopponent was mr. oxley. >> he had a weaker bill. he must have helped him. >> people said i was in the minority. if tom delay was susceptible, we would not have gone to

chairman and ranking member shelby and members of the committee.nk you for conducting this hearing today and for giving me the opportunity to offer a few comments on an outstanding nominee, roy woodall. has been nominated to be a member of the financial stability oversight council. when roy asked me to be here with him today to introduce him, i said i would be honored to do so because roy and i go back a ways and then some. in fact i first got to know roy and the years of the sound of music when the academy award for best picture and the first tv episode of "star trek" was broadcast. you know how much it cost to send a letter back then? 5 cents. it was 45 years ago. you see i met roy in 1966 when he was at 20 commissioner of the kentucky insurance department and i was working in the nebraska department of insurance at the time. over these years i have followed his career closely and we have kept in touch and we have many common friends. as we all know, the dodd-frank law cause for point and of an independent insurance expert to make sure that the i

shelby, it is my honor. i would like to thank president obama for the honor of this nomination and chairman johnson and ranking member show before scheduling this confirmation hearing. i have had the privilege of serving as vice chairman and board member of the fdic since 2005, having been nominated by president bush and confirmed by the senate. from november 2005 to june 2006, as senator sarbanes indicated, i served as acting chairman following the departure of the previous chairman, and i am again serving as acting chairman following the recent departure of chairman sheila bair. i worked for senator sarbanes on the staff of the senate committee on banking, housing, and urban affairs from january 1987 until august 2005. during the period, i had the opportunity to work on the major legislation acted on by the committee, including the interstate banking act and others, and the sarbanes-oxley act. in addition to working on some of the key pieces of legislation governing operations of the fdic, i have had the o

shelby lynne, kron 4 news. >> some in the gay community here have mixed emotions as the battle of legalizing same-sex marriage>> this continues to provide a source of contention for san francisco couples. >> new york is a huge state i think that we all thought that california was going to lead the way when mayor gavin newson we could all do it. and i thought that we were going to be leading the way instead of these other states. like iowa, [laughter] not think that it was going to happen that way but we will take it any iowa--[laughter] >> and with our lgbt for a state that is bent ashamed- for a state that the span the forefront and other frontiers, the lgbt community is we are not there in the forefront. i applaud new-york for taking a risk in doing this. it shows the other levels of the country and other cities are capable of doing this and why not us? >> this is a historic day can be summed up. destination wedding. one couple is going to go to brooklyn because they're waiting for the courts. they're tired of waiting. >> clearly this is not fair, clearly this is going to take so much long

. >> my name is paul gravely from petersburg, virginia at camp shelby, mississippi trying to go to afghanistan. happy 4th of j you will and a shout out to wife stephanie and my son elijah. i love you very much. every day you live with the pain of moderate to severe rheumatoid arthritis could be another day you're living with joint damage. help stop the damage before it stops you by asking your rheumatologist about humira. for many adult patients with moderate to severe rheumatoid arthritis humira has been proven to help relieve pain and stop joint damage. humira's use in patients with ra has been evaluated in multiple studies during the past 14 years. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events can occur such as, infections, lymphoma or other types of cancer, blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure. before starting humira, your doctor should test you for tb. ask your doctor if you live or have been to a region where certain fungal infections are common. tell your doct

i now turn to the ranking member, senator shelby. >> thank you, mr. chairman. welcome, again, chairman bernanke. last month the open market committee announced the end of the second round of so-called quantitative easing, commonly referred to as qe2. chairman bernanke had claimed that because of qe2, we no longer have the inflation risk. the data seems to support your claim. for example, the 12 but change in the consumer price index reached 3.6% in may. inflation, however, reveals that the most challenging task still lies ahead. the federal reserve's balance sheet presently stands at about $2.90 trillion while the federal funds rate has been effectively zero for more than 2.5 years. as a result, i believe the stage is set for a resurgence of inflation if the fed is not real careful. the task confronting the fed is out to unwind its massive balance sheet without sparking more inflation or damaging the economy, a real task in itself. unfortunately, the dismal performance of our economy and our record federal deficit will make this exceedingly difficult in the yea

shelby is going to filibuster hamid they don't like this agency. >> they never have. and they don't like consumers very much. >> they don't like the revenue stream this agency has. >> that's right, because it gives them autonomy that congress -- >> let me just explain to the viewers out there that this segment is three massachusetts democrats of the elizabeth warren campaign for senate coming to a polling place near you. "the new yorkread times"? endorsement.k's >> she would make a fabulous candidate, but so is brown -- >> i feel like a sign language interpreter on the show. i have to explain what is really happening. >> this replaced the sarah palin segment of the show. [laughter] >> this is the most humble day of my life. >> these actions do not live up to the standards our company spires -- aspires to. >> rupert murdoch and son james before british parliament. both apologized profusely for the phone hacking scandal that has engulfed the company did next day, their stock went up. what did you take away from this, colby? >> if i were a witness in a hostile situation,

and senator shelby and others who were their allies did not want any consumer agency at all.nd if it absolutely was the case politically there had to be one, they wanted a weak agency that couldn't get anything done. we had that fight and then we had a straight up vote on it. and in a straight up vote in the united states senate just over a year ago, that side lost. the side that carried the day is a good, strong agency. so that side is now saying well, i don't like how that came out. i want to stick a stick in the spokes unless the majority does what the minority wants it to. that's not how democracy works and it's not how this agency works. it's just wrong. >> i take it you don't want any changes. but the u.s. chamber of commerce today came out with a tough statement saying unless there are these change, it's a job killing bureau. an unaccountable agency, it says with broad enforcement powers, could do serious damage to the credit markets at a time when small business lending is still reeling. and they point out that most new jobs are created by small businesses. what do yo

. >> thank you, amanda and thank you shelby. appreciate it. >> thank you so much. >>> the tour is part of a program called no nonsense socks for america widownates socks to kids in need. if you want to follow their tour or help out, you can visit their website at socks for america.com or go to facebook and search for no nonsense socks for america. you know, we're watching capitol hill right now and the white house tonight as lawmakers continue to try to resolve the debt crisis. the senate was facing a late night of debate but has just changed its plans. we're also following other news tonight, including two dozen assault rifles stolen from of all places a u.s. military base. you don't see the this every day. a jet plane split in half. the amazing stories of survival straight ahead. [ jon ] we don't just come up here for the view up in alaska. it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah! [ male announcer ] hurry in to crabfest at red lobster. the only time you can savor thr

. -- i turn to ranking member shelby. the fomc announced the end of the second round of quantitative easing, or qe2. ben bernanke claimed that because of qe2 that we no longer have a risk for inflation. the 12-month change in the consumer price index, 1.1%, reached 3.6% in may. the rise in inflation, however, reveals that the fed's most challenging tasks still remains ahead, i believe. the fed balance sheet is at about $2.90 trillion while the federal fund rate has been effectively 0 for more than 2.5 years. as a result, the stage is set for a resurgence of inflation if the fed is not really careful. the task confronting the fed is how to on wind its massive balance sheet without sparking more inflation or damaging the economy -- a real task in itself. unfortunately, the dismal performance of our economy and our record federal deficit will make this exceedingly difficult in the years ahead. chairman bernanke, i believe, must also contend with the consequences of the administration's economic policies. its failure to adopt

both are committing costly errors leaving ferrari man fernando alonso to reap the rewards reaming shelby and sebastian vettel started the day in second but sees top spot right from the off the german then lost opposition to fernando alonso when both cars went in for a pit stop on love twenty seven a wheel not gone malfunction in the red bull garbage along the spanish two time champion to take control jenson button mcclaren mechanics then forgot to put the wheel not on altogether forcing the winner to retire so along to first for the checkered flag well vettel got the better of all star and seen it mark webber for second place russian batali petroff finished well. all right from england to argentina where nerves are juggling for brazil up a couple of america the defending champions and win their last group game to ensure a progression into the quarterfinals after a second straight troll against part of this time the time winners opening the scoring thirty eight minutes in through johnson a typical personally and strike this. i think through the second half part of why i find themselves in

and shelby. they will shoot you with the whole caboodle whole group a whole. hour another class room in a corner and the playground so as a group with us you could was one of seven hundred thousand palestinians who became a refugee in one nine hundred forty eight his childhood home was quickly absorbed by the newly established a jewish state almost biblical as being and who lived in london for and he was forced to go. because he was free and here he is considered as absentee and he lost the property in the early one nine hundred fifty s. jews moved into the abandoned homes like your new york and spare ins they were also refugees fleeing arab countries with life had become dangerous after israel was created these really government simply to live in lifter you only says to prevent arab owners from returning when they came here and therefore live here without water without electricity came here to jerusalem for the memory here is very important most of the original two hundred jewish families lived because life in the mountains was difficult and the government wa

brotherhood who they have all the muslim organization with these poor of two the idea of money this is shelby and a conflict also the two people that is it in the most or in community this make this election produce against the action by the committee in europe on what happened by this that are out in from christan acts that are missed and all slow it's not the new we see that the right movement the new increase and grew up the development go far away that i can see in the next time shall be confrontation between this power and there are many there are many that are saying there is there is a hard right movement in parts of europe to go against multiculturalism earlier you were alluding to the failure of multiculturalism we've already heard top leaders for example the angle of merkel pronouncing multiculturalism in europe is dead isn't dead though to the extent of a shooting spree and bombings on the street. is there because the integration failed absolutely and i told you the a muslim also they bring their culture and the european community they don't accept it maybe the older they did that

they have their sites on an empty office building their shelby lane. they need at least 27 parking spots and they signed a contract with rent a car to lease nine spaces but threats of protests from abortion opponents may force the rental company to back out of deal. >> we understand there are questions about it. as far as we know and we understand, it's a legally binding contract. >> an enterprise spokesperson says the contract never got approval because planned parenthood rescinded the original materials. >> a bay area council has proposed a solution over an impasse to high speed rail on the peninsula. they are urging the metropolitan transportation commission to take the lead of planning it and to electrify the caltrain system from san jose to san francisco, that would eliminate the need to build new high speed tracks through communities that objected them. it would cut the costs down to $2 billion. >> jackie speier has introduced a bill to halt the presidential one dollar coin. more than a billion of them are sitting there because nobody seems to wa

what is today question >> martin shelby will be there the menu of music is world music as well as jazz come have a great time and have lots of fun barracks >> this is the bed and is on the 17th. it is not going to run until august the 14th you cannot look for these websites to get more information barr. we thank you for coming and we'll be right back we're back it is now 9:00 a.m. with this breaking news it is not outside. live look outside live from the mount tam cam and remember it the clear air day. we jet in on the weather >> we're taking all live look outside lots of sunshine down somewha town. temperatures of outsider warming up very nicely 72 n. taliban 62 in san francisco there is i need advisory going to be issued starting at noon through 9:00 p.m. if you and i had to the coast and seek some relief at the beach you have a great day. it is also going to be a bit breezy later on this afternoon whoppe. 81 for downt's santa rosa 90 along the peninsula one of two antioch and morgan hill hearing this is a look of your seven day forecast lots of sunshine and today will be the hottest

there was an office building they're shelby lane but zoning rules require 27 parking spots. to accomplish that they signed a contract with near enterprise rent a car. now enterprise claims that threats from abortion opponents forced the rental company to back out of the deal. >> we understand there were questions about it and as far as we understand, its legally binding contract. >> a spokesperson told "abc 7 news" the contract never got approval because planned peirnt hood revised original terms. >> some day you may be checking your mayor box a lot less frequently. mail deliveries may have to be cut back to three days a week. it wouldn't need to happen soon, say 15-20 years. for now, postal service don't cut deliveries back to five days a week. they have lost an estimated $20 billion due to a drop in deliveries. maybe it is time to change the business practices. >> some days, that is all i get. >> there it is, you open it up and sun is rising and beautiful, as well. >> nice picture, some of the clouds and moisture, a little bit of haze that is developing around the bay area

senator shelby has a couple -- >> i feel at home here today. i count nine of my former colleagues here. >> a few observations. congressman frank and i have sparred over issues over a number of years. i agree with him that there is a difference between managed risk and speculation. i think we agree on that. speculation will cause people to get into trouble. managed risk will help people. as far as fannie mae and freddie mac, the congressman knows when we were in control here and i was the chairman, which pushed hard for a reform of fannie and freddie. we got it out of committee. we pushed hard, we will continue to do that. i do not know what is going on in the house. i can tell you, we -- sooner or later, we hope to do something substantive with fannie or freddie. we recognize they are the only game in town as far as -- >> i remember that in 2005 and 2006. as i remember, your poinopponent was mr. oxley. >> he had a weaker bill. he must have helped him. >> people said i was in the minority. if tom delay was susceptible, we would not have gone to

mourning the loss of my own mother right now, but god sent me here to pray that what ever is cricket shelby straight now in justice and shall preserve. >> the town hall meeting that happened here the other night that was actually reproductive in the sense that it was important for people to name that it is not appropriate for the police to come out and run a meeting and ask for feedback from the community or be accountable in any way. >> i talked with a number of people that live in the debut area--in the bay view area, they told me they have seen some changes since last saturday they said it had not seen as many officers at the muni station a bay view area they have not seen as many checking for tickets and many of them said that is good news. they felt good about seeing that. reporting live in bay view, i am j.r. stone with kron4 news. >> san francisco policeman continue to look for the gun that killed kenneth harding they believe that he died by some how shooting himself in the neck. the san francisco police chief talk today about how that might have happened. >> for the members of the p

reaction came from richard shelby, saying "until president obama addresses our concerns by supportingtructural changes we will in the confirm anyone to lead it. no accountability, no confirmation," but the president says he will fight efforts to repeal are on undermine the changes made by the agency. >>shepard: so it is all politics. >>reporter: it would appear so. >>shepard: like everything else, washington is broken, washington doesn't do anything and nothing can happen. they fight, and here comes the debt crisis, no one has a job. they fight. they have to have control of the sinking ship. thank you. an iowa congressman fighting off an armed intruder after the man broke into his house and tried to attack his daughter. it happened over the weekend at the home of 77-year-old democratic congressman boswell. his spokesman says that the congressman tried to grab the man's weapon and the spokesman said that is when the congressman's son grabbed a shotgun and scared away the suspect. the family is shaken up. but no one seriously hurt. the united states is starting the troop draw down in af

shelby said, "until president obama addresses our concerns by supporting reasonable structural changeswill not confirm anyone to lead it no accountability, no confirmation." republicans want a single director replaced by a full board. they want the agency to the aprop ration process and check and balance system to promote excessive regulation. warren says the vote on capitol hill last year ended the debate. >> so the same republicans are saying no, no, no. we want to keep fighting the debate and stick a stick in the spoke of getting the agency up and running. unless you agree to rip off the arms and legs from this agency. we went let it go forward. i think it's a deeply shocking position. >> without changes, some republicans vow to fight the nomination. but the president says he will stand firm. >> i will fight to repeal the changes we passed. >> i asked about the rumors she may run against scott brown returning home to massachusetts. she said she needs vacation and time with her grandchildren before deciding what do next. >> thank you. those battling traumatic brain injury are hoping

. >> senator shelby? >> it seems to me that after most crises we are told if regulators only had more resources they could have prevented what ever crisis it was. as a result the standard real -- response by congress is to grow the bureaucracy. dodd-frank hit this pattern because of dodd-frank leaders and regulators have seen their powers grow the american economy and their budgets also grow. dodd-frank landed over a 4,000 new government jobs. many of them very well paid. employees at the fcc and other agencies can earn $230,000 a year. meanwhile as we all know private sector job growth is in place. do we now have enough government bureaucrats to protect the financial system? >> let me go back to the premise of your question which is i really do think -- i believe there is widespread agreement the regulatory structure before the crisis was inadequate. there were large gaps in our coverage. nobody responsible for looking at the system as a whole. there were significant weaknesses in the structure of the fi

senator shelby has said, and i put his quote up, until president obama addresses our concerns for supportingctural changes, we will not confirm anyone to lead it. congressman mcdermott this is amazing. >> well, it is not amazing al if you consider that republicans ran us into the ditch with the unregulated wall street and they have fought every step of the way against the dodd-frank bill when we tried to establish some regulation. and that they go on after the bill is passed and signed by the president and it goes into law that they are still fighting it. no surprise. they want to have unregulated wall street that can take us back down the same ugly path we went down two years ago. >> isn't this beyond party though? this is about the american economy. this is about working class people. i mean, even ms. warren said, let me put up what she said about this her son -- listen to what elizabeth warren said. >> i just want to say, this agency is not partisan. families across the country who can't read their credit cards because they think that the terms are written in some other language, that's n

senator richard shelby, senior republican on the banking committee, says relatively small adjustmentssomebody confirmed. and that's the kind of thing he's talking about. >> this agency, they believe, the people who are opposed to it people in the financial services industry, they say there is no accountability and they want more accountability and that's what this is about, correct? >> what does accountability mean? they are supposed to be in charge, have clear and fair rules. and that's where they are headed. >> i saw elizabeth warren today, talking to wolf blitzer. she says these guys want to rip the arms and legs off this agency before it can ever get started is that true? >> they want to de-fund it, and if they are able to de-fund it through various kinds of maneuvers that would be very difficult. the s.e.c. has a very big funding problem. this new consumer protection agency is not there yet and as long as the president comes out and fights on the grounds he laid out today, he'll win. >> i want to talk about the work of the agency itself. how much do consumers need this? we're not

shelby, to try to frustrate slave capturers who are trying to capture fugitive slaves. they used minstrel techniques, but they used it forward a sub verse event to try to break the law. the law was the fugitive slave law which demanded that fugitive slaves had to be recaptured. so sam and andy can look like minstrel clowns, but they're not. they're using, they're using minstrel -- or stowe is using minstrel techniques to subvert the law of the land which was the fugitive slave law. of 1850. and topsy, again, she kind of, she tumbles around, and she's kind of funny, and we laugh at her and all of that. and yet when we think about what she says, she says where were you born, she says, i was never born. who are your parents? i never had parents. and then when she's whipped by aunt ophelia, she says, oh, her whippings are like mosquito bites compared to the real whippings i used to get. but when we think about all of that, we realize how horrible all of that is. like many enslaved blacks, she does know where she came from, she does know who her parents are. she's been whipp

. -- senator shelby. >> thank you, mr. chairman.he professor notes that if the bureau opens without a director, the bureau will not have all of its powers, including the authority to regulate non-banks. some say the director should be installed immediately to ensure that banks and non-banks are regulated similarly. what is the position on the need to immediately confirm a director? >> the american bankers association position has been the same since the introduction of the cfpb. it is a matter of governance. we believe they should have an oversight board or a commission that allows that director to report to it. that has been our position. that is the sound way to roll this out. no one will stand in favor of having any consumer damaged or having the egregious nature ms. drysdale discussed. we believe this needs to be got in right the first time. it is not a matter of us not saying go ahead. it is a matter of us saying we believe this structure is the proper structure for this agency. >> it is all about accountability. in your testim

and the top republican on the banking committee-- alabama's richard shelby-- issued a statement yesterday concerns by supporting a few reasonable structural changes, we will not confirm anyone to lead it. no accountability, no confirmation." today, the president made light of the difficult confirmation process, citing cordray's statuç as a five-time "jeopardy" champion in the 1980s. >> that's why all of his answers at his confirmation hearings will be in the form of a question. that's a joke. >> woodruff: the agency, which officially begins work thursday, will be independent of other regulators but funded by the federal reserve. for more on about this agency and its new nominee, we're joined by jeff madrick is a senior fellow at the liberal- leaning roosevelt institute. he's a regular contributor to the "new york review" of books and the author of the recent book, "age of greed." and david hirschmann is the president and c.e.o. of the u.s. chamber of commerce center for capital markets competitiveness. gentlemen, thank you both for being with us. jeff madrick, do you first. we heard a l

memphis where shelby county schools and city schools merge together we will see how that works. official faces charges after police say he shoved disabled man over a fight over a parking space. top story fox trip across america. massachusetts. the 53-year-old victim reportedly told police that member of the town planning board was parked in two handicapped spots at a restaurant south of boston. the disabled man claimed that when he tried to take a picture of the vehicle, the guy shoved him and slapped the cell phone right out of his hand. >> scared the hell out of me. he is not a small person. and i'm not used to getting into bar fights. >> police charging the suspect with assault and battery and more. arizona. police say a man used a wheelchair as part of his disguise when robbing a bank in phoenix. the suspect pulling a gun. after the robbery reportedly leaving that wheelchair behind as he took off on foot: louisiana. bones that reno investigators found in an old sealed off bank chimney solving a 27-year-old missing persons case southwest of baton rouge. police say they are th

shelby had upon order of this court. -- shall be had upon orders of this court. it is an effective system and depends on large measure of public confidence in the work of that system and it is hard for the citizenry to have confidence in the system it does not understand. part of the reason for this confusion is our fault. we speak our language and we follow ancient traditions, we seek to administer justice without any real concern for exploiting to the public what we do, and sometimes, not all cases but in some cases, we slammed the door on the public to information about the case and its procedural history. this is what i would like to speak to this morning. the question of whether and to what extent a judge should order confidentiality in cases is one that has troubled courts and policy makers for years. events of the past decade have brought our courts and to distribute -- into disrepute. i am speaking about the firestone tire and catholic priest cases. this has led to proposed draconian laws. the sealing of anything lawyers have requested sealed. trade secre

and communication between the occ, the bank agencies and the cfpb. >> senator shelby? >> i'd like to pick up on senator corker's question about too big to fail and so forth. i would think that the ideal situation would be a message from the regulators that nobody is too big to fail. and that you do reckless things and you're the comptroller of currency and the fdic of the fed, big regulators here, that we're going to close you down, no matter who you are. of course, we're going to try to prevent as regulators into getting into this kind of trouble. not everything but a lot of the blame for the financial crisis -- a lot of it came from the regulators, right here. when i was chairman of this committee, i asked the question of the regulators, not you, but the others, the federal reserve chairman, the fdic chairman at that time, the comptroller, what are the conditions of the bank? we had a hearing on this. i hope that the chairman will continue this to hold a hearing specifically of the condition on the banking system and what was the answer here right here in this commit

senator shelby has a couple -- >> i feel at home here today. i count nine of my former colleagues here. >> a few observations. congressman frank and i have sparred over issues over a number of years. i agree with him that there is a difference between managed risk and speculation. i think we agree on that. speculation will cause people to get into trouble. managed risk will help people. as far as fannie mae and freddie mac, the congressman knows when we were in control here and i was the chairman, which pushed hard for a reform of fannie and freddie. we got it out of committee. we pushed hard, we will continue to do that. i do not know what is going on in the house. i can tell you, we -- sooner or later, we hope to do something substantive with fannie or freddie. we recognize they are the only game in town as far as -- >> i remember that in 2005 and 2006. as i remember, your poinopponent was mr. oxley. >> he had a weaker bill. he must have helped him. >> people said i was in the minority. if tom delay was susceptible, we would not have gone to

shelby, to try to frustrate slave captures who are trying to capture fugitive slaves so they use minstrel techniques, but they use it towards a subversive end to try to break the law. the law was the future slave law that demanded future slaves have to be recaptured, so sam and andy look like minstrel clowns, but they are not. they used those techniques to subvert the law of the land which was the fugitive slave law of 1850, and topsy, again, she kind of -- she tumbled around and she is kind of funny, and we laugh at her and all of that, and yet when we think about what she says, she says where were you born? she says, i was never born. who are your parents? i never had parents, and then when she's with aunt, she says, oh, her whippings are like moo skeet toe -- mosquito bites compared to the real whippings i used to get. when we think about that, we realize how horrible that is. like many enslaved blacks, she doesn't know who she came from or who her parents are. she's been whipped, whipped to the extent where she doesn't even feel it anymore, and so stowe used these minstrel techniques

i now turn to the ranking member, senator shelby. >> thank you, mr. chairman. welcome, again, chairman bernanke. last month the open market committee announced the end of the second round of so-called quantitative easing, commonly referred to as qe2. chairman bernanke had claimed that because of qe2, we no longer have the inflation risk. the data seems to support your claim. for example, the 12 but change in the consumer price index reached 3.6% in may. inflation, however, reveals that the most challenging task still lies ahead. the federal reserve's balance sheet presently stands at about $2.90 trillion while the federal funds rate has been effectively zero for more than 2.5 years. as a result, i believe the stage is set for a resurgence of inflation if the fed is not real careful. the task confronting the fed is out to unwind its massive balance sheet without sparking more inflation or damaging the economy, a real task in itself. unfortunately, the dismal performance of our economy and our record federal deficit will make this exceedingly difficult in the yea

. >> senator shelby has two more questions. >> thank you for your indulgence. professor levitin, in your testimony today you have clearly expressed your believe that the otc and other financial regulators have not done a good job of oversight that -- overseeing our financial system. i think that is a given. accordingly, do you support reforming the otc and other regulators to make them more accountable? >> yes. >> thank you. mr. calhoun, in your testimony coming you severely criticized the office of the comptroller of the currency's actions in the lead up to the financial crisis. noting several for all areas where the ftc acted irresponsibly -- otc acted irresponsibly. it is worth noting that other than the bureau that we're talking about here, the comptroller is probably the least accountable of our financial regulators, at least a lot of people believe that. do you believe, sir, that the otc should be held accountable for its actions? do you? >> i believe they should. i think primarily by -- >> you do believe that as a regulator it should be held accountable

senator shelby has a couple -- >> i feel at home here today. i count nine of my former colleagues here. >> a few observations. congressman frank and i have sparred over issues over a number of years. i agree with him that there is a difference between managed risk and speculation. i think we agree on that. speculation will cause people to get into trouble. managed risk will help people. as far as fannie mae and freddie mac, the congressman knows when we were in control here and i was the chairman, which pushed hard for a reform of fannie and freddie. we got it out of committee. we pushed hard, we will continue to do that. i do not know what is going on in the house. i can tell you, we -- sooner or later, we hope to do something substantive with fannie or freddie. we recognize they are the only game in town as far as -- >> i remember that in 2005 and 2006. as i remember, your poinopponent was mr. oxley. >> he had a weaker bill. he must have helped him. >> people said i was in the minority. if tom delay was susceptible, we would not have gone to

and there was an article in "the washington times" yesterday or day before, my colleague, senator shelby from alabama, asked the secretary of education how he could explain that the secretary of education and the president were proposing that the department of education get a 13.5% increase for next fiscal year, beginning october 1. 13.5% and he defended that. he said he was justified, it was an investment. but when you don't have money, you have to change business. you can't continue to be in denial, and pretend that this is normal, that we can just continue to increase the education department by 13.5%. by the way, the department of energy -- the president proposes, and their secretary defends, a 9.5% increase for the department of energy. which does more to restrict the production of energy than produce the source of energy in america. the department of state -- 10.5%. i'm talking about their proposal for next year beginning october 1 of this year, the fiscal year. 60% increase they propose for transportation. and they propose a tax for that, but won't say what it is when asked. but i

actually back in june in camp shelby, mississippi they had a lightning strike that actually injured 77one time. it can happen. is it likely, did it actually happen? we'll never know. >> how does that happen? the lightning hits the ground or something that they are all standing on? >> absolutely. one bolt can -- >> it gets better than this, do i have to toll you this part. >> bring it on. >> is that the north korean team have been accused of taking steroids and they say that it was the chinese medicine that they had to use the gland of a deer they had to use because of the lightning strike. >> you know, i've had many side effects from deer glands, we all have. to cause lightning strikes that would take out five people, i don't know. >> interesting. this is a team also that in june of last year, the men's world cup soccer team, apparently the coach had an invisible phone we could speak to kim jong-il. this was a phone kim jong-il invented, the power of kim jong-il himself. >> i stayed with you on the lightning strike and the chinese medicine. you lost me on the invisible phone. >> the co