first, david stockman. in the 1970s, he was a young republican congressman from michigan and an early proponent of supply-side economics -- some call it trickle down. you know the theory. if you cut taxes on the wealthy, while cutting government, the economy will take off, money trickling down and creating millions of jobs. it was the centerpiece of ronald reagan's 1980 campaign for president. >> there is enough fat in the government in washington that if it was rendered and made into soap, it would wash the world. >> once in the oval office, president reagan made david stockman his budget director. >> when president reagan gave me this job he pointed to that budget which is some thousands and thousands of pages long, and he said, "go through it from top to bottom with a fine-tooth comb and unless you can find a persuasive demonstration why funds must be spent, cut those budgets." >> stockman helped reagan usher in the largest tax cut in u.s. history, a cut that mainly favored the rich. but things didn't go

stockman, an economist, and they both talked about speculators buying up oil at this point based on the possibility that if -- is real will attack around -- israel will attack iran. host: a lot to work with there. guest: good questions. to enter the first part, i think regulations to protect -- answer the first part, i think regulations to protect the environment are important and we have good regulations in place. we have good safety regulations in the gulf of mexico for deep water building, -- drilling. it is important to have regulations and we do. when it comes to hydraulic fracturing underground, the states are doing a great job. we learn that ohio's geology and water is different than other states. so, i would rather have the various states that know their own location and geology better than washington does to stay in control and not impose a federal layer of regulation on top of what the states are already doing a good job of. host: you held a field hearing. what was the purpose? guest: it was to talk about fra cing. the testimony we heard pointed out that we do not need a feder

stockman? >> they were the chief risk officers. >> were you aware both of those made recommendations that the maturities in the foreign sovereign debt were a potential risk to the company? >> i became a cfo in april, but i was aware there were many discussions between the board and mr. karzai and the risk officers around risk limits. >> are you aware of a document called a break the glass that was put together by your firm? who prepared the document? >> there was a working group put together. they were members of treasury, members of finance, members of risk, treasury because that was like a scenario analysis document so it requires the input. >> did you participate in not? that was when that you put that document to get there? >> the original request was made in august i believe by the board, and was completed when? >> was presented to the board about the middle of october. >> is it ironic that you put together the break the glass scenario and senate 14 days before you declare bankruptcy? >> i

after the stockman has been imprint approved it will be incorporated into the current resolution up on the final vote whether to report the measure to the house. the committee will now proceed to consideration of the functional categories and other matters. the ranking member and i have agreed to limit the time for consideration of each amendment and amendment process. the committee, the ranking member and i have agreed to limit time for the consideration of each amendment so that there will be ample opportunity for all members to offer amendments or good list of amendments has been distributed to members. as part of this agreement the time for each tier 1 amendment will be limited to 20 minutes. tier 2 limited to 15 minutes in tier 3 will be limited to 10 minutes. debate time will be evenly divided between the sponsor of the amendment and a member of pose. the proponent of the amendment will have one minute reserve to close so it will go nine, 10 and then back to one. were example in tier 1. the document will be considered as considered as read and open to an amendment at any point. >

stockman? >> yes, they would achieve risk officers. >> view where they made recommendations that the repos to maturities in the foreign sovereign debt for a potential risk the company? for you -- >> fair, i became cfo in april, so what i was aware but if there were numerous and many discussion between the board, mr. corzine and the chief risk officer in the word meeting and risk parameters. >> are you with a document called great the class put together by your firm? >> i am, sir. >> cooper pair that document? >> there was a working group put together. >> they were members of treasury, members of finance, members of risk, treasury operations because that was like a scenario, street scenario, so it requires the input. >> did you participate in that? >> i did, yes. >> when did you put the document together? >> the original request for the document was made in august i believe that the board. >> and was completed when? >> it was presented to the board sometime around about the middle of october. >>