even in the financial business. know there is much more regulation, they know what they have to comply with the daily, but they don't understand that it is all the results of a new act. in that new act, the dodd frank act, was adopted because of the diagnosis that the media, to a large extent, and the government itself had given to their causes of the crisis. we have been told that it was a lack of regulation of the private financial system that caused the crisis. i have shown you the data that indicates that actually it was the government. but most of the things you see in the newspapers suggest that it was the private sector. and that it was insufficiently regulated. so the dodd frank act was adopted in 2010. and that is by far the most restrictive, suppressive law in posed on the financial -- imposed on the financial system since the new deal. i want to talk a little bit about the dodd frank act because there is a clear relationship between the slover covering we are looking at here and the slow development and g

i just think that it's the sole cause of the financial crisis. by the by the nader 2,000 scum mid-2000, the market share has been cut in half as this sort of sub i'm lending where instant of the mortgage originators is going to market just to fannie and freddie were totally bypassing fannie and freddie cutting them out of the market and that is what all of them wanted to see happen. the problem is the standards for the loans were getting riskier and riskier. so around the 2005 they started buying some of these wall street securities for their own portfolios and using them to meet their affordable housing goals and they decided we need to get into this business, too. you can base back through the interviews with executives through executive presentations. they were terrified that they were losing their profits into their hold on the market, so they began to guarantee the risky loans. you can see in the numbers they guaranteed for never as risky as the private sector loans that helped bring down the system in the default rate on the loans like a fra

since the financial crisis, since the recession that occurred just after the financial crisis, large businesses those with more than 500 employees have been growing at a rate that is consistent with is that the black line. that is as they are growing and as they are recovered at the rate they always have in the past. small businesses, those with less than 500 employees are not growing at all. in fact, as they have declined. if you want to know why the u.s. economy is sputtering and and we areing forward, why not seeing growth, it is because small businesses which are responsible for about 64% of all new hires in our economy are not being sufficiently financed so that they can get the inventory is grow and make loans that the banks can make loans that small businesses will be up to use to grow. so that is why it is extremely important to understand dodd frank, the fact it has on the banking system, and that in turn on the growth of the entire economy. that is one issue. we understand now is the reason we should be caused thebout what financial crisis is that we adopted a law that does

in the wake of the financial crisis, private capital completely fled the mortgage company. if we hadn't had fan incomer ie and freddie there would not have been mortgage market. financial crisis would have been a lot worst. fannie and freddie provide mortgage credit when private sector wouldn't do it. >> host: you spent a lot of talk about how they sort of accumulated political influence in washington. can you talk a little bit about how they did that in the sort of, you know, the sort of opinions and fierce of fannie and freddie that came as a result? >> guest: yeah, there were always people in the government in academia who said, what are we doing with the government present in the housing market, we are a free market economy, we are a capitalist economy, why can't private capital just take care of americans mortgage needs? there was this sort of ideological resistence. in response to that, fannie and freddie created real lobbying, fannie had the most sophisticated lobbying operation that he had seen in his entire life. the reason they did that because there were forces in

critical to the functioning of the financial system that is what makes our lives possible they expect to have a mortgage rate quoted to you. >> in recent history as one of the first to companies to be taken over by the government to be responsible for the financial crisis. and this is how far we have gotten. >> but the idea there is the silver lining with a global financial crisis you are riper but the first to companies but then to be bailed out by j. t. morgan. with that by line of credit from the treasury and when they were taken over the adn said this would be temporary to figure out how to reform the housing finance system and here we are seven years later the giant companies are still in the state conservatorship what do we want housing finance to be like? and think that is an issue with every american with the mortgage and for every investor because the $5 trillion of securities moved through like water everywhere. with global economic ripple effects. >> to literally no the thing -- the function of fannie and freddie. i go to my baby or lender to get a mortgage but then what ha

the u.s. treasury deal with financial problems around the world.so he had cut his teeth to some extent helping deal with the asian crisis of the 1990s. so he was a crisis fighter from way back. so we had a very diverse set of backgrounds and skills and working together, i think it was a good combination. >> rose: what was the biggest source of disagreement? >> you know, i think we were under so much pressure and controversy externally that, for the most part, we -- you know, we kind of banded together, if you will. i mean, there was this agreement -- tim was urging hank not to say what he said in the beginning before lehman which was the government was not going to provide support which i believe i discussed in my book was a tactical statement that hank made. >> rose: he didn't want other people thinking they were going to come bail them out. >> yeah, he was hoping and we were all hoping that a buyer or the wall street c.e.o.s would collectively do something themselves to save lehman and leave us out of it. obviously, they would have to incentive t

i went through the financial correction of the early '80s and early '90s. definitely in the early '80s we had a worse economic environment, and yet we didn't have a crisis. the reason we had a crisis this time and, unfortunately, this was under the a republican administration, was that the rule of law was suspended. the fed, for reasons that were absolutely unclear to anybody in the market chose to save bear stearns. later on they let lehman fail. they saved citigroup, they let wachovia fail. rule of law was gone. so we were going to have an economic correction. we'd created a housing bubble, and we needed a correction. but a lot of the damage was done by the panic which was absolutely unnecessary. it was -- there was no rule of law. and the beginning economic environment wasn't as bad as the early '80s and arguably the early '90s, and yet we had this panic. by the way, i don't -- there are a lot of big banks that i would have let fail, but they were the secondary effect of the crisis. the fed enabled the crisis. >> i wonder, mr. allison, could you briefly

how much of the benefits did that actually guess that was new since the financial crisis. it wouldn't have been a mortgage market and arguably the downturn that followed the financial crisis would have been a lot worse. so fannie and freddie served the purpose of stepping in to provide mortgage credit. >> so you spend a lot of time talking about the lives of fannie and freddie at the development and have accumulated political influence in washington. the free-market economy with a capitalist economy that is the government-sponsored enterprise why can't the private capital just take care of americans mortgage-based. in response to that, fannie and freddie developed the lobbying and i think that if the former congressman who used to say they have the most sophisticated lobbying operation he had ever seen in his entire life. the reason they did that is because they felt like there were forces in the government to take away the advantages they have from this perception it became a really formidable and political and that in some ways intensifies. i think that you have people th

loney, a member of the financial services committee, one minute. the speaker pro tempore: the gentlelady is recognized for one minute. mrs. maloney: i thank the gentlelady for yielding and her leadership. i rise in opposition -- i rise in strong support of re-authorizing the export-import bank. there is never really a good ime to commit economic suicide and now would be especially a bad time. cost jobs.bank ex-im has returned nearly $7 billion to the u.s. treasury. killing the ex-im bank would be especially bad right now. export demand is falling because of our strong dollar and economic headwinds in china and greece and europe. and we have to remember that there are 85 different ex-im banks around the world from china to canada, all of whom who are supporting exports more than we are. we are in a competitive world. they say when you lose a job, it goes somewhere else. what the opposition isn't saying is that it's going overseas. i support the export-import bank and vote for re-authorization. the speaker pro tempore: the gentleman from texas. mr. he

in various sectors, including the financial sector. and when people look back 10 years or 15 years from now, we see that the market reform is really good. not only for china, but for the rest of the world. , 12 months from now, will the rmb be lower in value? mr. jiechi: it is normal for the currency to move either way. but it is a reliable currency, and more and more people actually do their trades in rmb. and i am sure it will continue to play a healthy role not only in the chinese community but in the international trade and investment and so on and so forth. betty: were you surprised by how the markets reacted to the devaluation of the renminbi? mr. jiechi: let me say this. every country has its challenges and their problems, and every country should do a better job of their own economy. [laughter] betty: they should mind their own business, right? mr. jiechi: i do not mean that. what i mean is that the chinese economy is a big one, but it is not that big. there are many players in the field. so their economic performance fundamenta

stacy cannon, deputy director of the office of financial protection for older americans at the consumer financial protection bureau. and mr. robert f. harris, public guardian of cook county, illinois. we appreciate all of you being here today and we'll begin the panel with you, mr. kaufman. you're recognized for five minutes for an opening statement. >> thank you. good morning. i am daniel kaufman, deputy director of the bureau of consumer protection at the federal trade commission and delighted to appear before you to provide an overview of the fraud throat older americans. come batting fraud is a critical component of the ftcs consumer protection mission and certainly every law enforcement case that we bring affects older americans. we have adopted a multifalls set approach in our battle against fraud targets older consumers or injuries them more than others and clues aggressive law enforcement policy initiatives and consumer education and outreach. to address such fraud effectively, the ft c'monner toes fraud trend by gathering data gather from consumer complaints and surveys and cor

in various sectors, including the financial sector. d when people look back 10 years or 15 years from now, they will see that the market reform is really good, not only for china, but for the rest of the world. betty: let's see, 12 months from now, will the currency be lower in value? mr. yang: it is normal for the currency to move either way. but it is a reliable currency, and more and more people actually do their trades in renminbi. and i am sure it will continue to play a healthy role not only in the chinese economy, but in the international trade and investment and so on and so forth. betty: were you surprised by how the markets reacted to the devaluation of the renminbi? mr. yang: let me say this. every country has its challenges and problems, and every country should do a better job of their own economy. betty: they should mind their own business, right? mr. yang: i do not mean that. what i mean is that the chinese economy is a big one, but it is not that big. there are many players in the field. so their economic performance fun

the second financial -- the suddenly federal award finding is for the programs listed. the first is the continuum of care program and served by the human service agency and the second one is the pilot demonstration and research project by the office of work force development. this finding related to you a report that was required to be submitted anytime awards are made and has to be made at the time of the award and we found that the reports were not filed. this finding on procurement and suspension debarment is also a significant deficiency and relates to the child support enforcement program that is administered by the department of child support services. for this particular finding it relates to the contracting process. for contracts that are funded by federal awards there is a requirement to make sure that the contracting entity is not suspended or debarred. in one of the examples we selected for testing the department of child support services utilized a blanket contract that was procured by the city, but because the blanket contract was procured for the city over

including the financial receptor. .0 years from now, we will see china, and good for the rest of the world. now, it isonths from reliable currency. more and more people actually do their trade. that to the eye and be will continue to play a very healthy role not only in china's international trade .n to and so on and so forth surprised? you mr. yang: let me say this. every country has its challenges and problems, and every country should do a better job of their own economy. betty: they should mind their own business, right? mr. yang: i do not mean that. what i mean is that the chinese economy is a big one, but it is not that big. there are many players in the field. so their economic performance fundamentally has an impact on the behavior of the financial market and so and so forth. and the difference between the chinese stock exchange and the stock exchange of many western countries is there are far more institutional investors in the west. and, of course, there is always room for improvement for anybody, so i do hope that people will take an appropriate and calibrated approach to

"the financial times" and "the economist," two brands that pearson sold. the break we talk acquisitions, strategy, and leadership. john: if we can find acquisitions that create value to shareholders and long-term sustainable opportunities as well, we will take them. francine: more from john fallon when we return. ♪ ♪ francine: welcome back to leaders with lacqua. publishing group pearson will gain 1 billion pounds from the sale of the "ft" and "the economist." but what will it do with the money? john: if we can find acquisitions that create value to shareholders and sustainable opportunities as well, we will take them. but we don't need to hurry or rush, and we will do that in the context of returning capital to shareholders. francine: do you worry about currency movements? john: we judge things at constant exchange rates. we are a u.k. listed company. clearly the most important exchange rate that our shareholders look at is the pound-dollar exchange rate. over the cycle, we and most shareholders would look through that. clearly you look at events in brazi

just last week before a financial services committee hearing, the consumer financial protection bureau director indicated that the agency will implement a hold harmless period so that the industry could implement rules without risk of enforcement. h.r. 3192, which will further extend the grace period, is there -- therefore unnecessary. the consumer protection financial bureau has already indicated a willingness to work hand in hand with the industry. but i guess that is not enough. if this bill is enacted, the private right of action will be blocked. denying consumers their basic right to a day in court. that is not right. and this body should not stand for it. this will undermine the intent of the integrated disclosure which is to provide clear, straightforward information to consumers regarding their mortgage. how could you call this piece of legislation protect american investment in their homes, and yet use all these dilatory tactics to prevent consumers from having their right in court and from having the information that they need in order to make a wise decision. we are trying t

the fact that since the financial crise the hue and cry has been more capital. give banks more capital and the financial system will be safer. fanny and freddie with their more than $5 trillion outstand regular running on almost no capital. if interest rates go up, if they suffer a loss, taxpayers will have to foot it the bill again. >> brown: that risk is still there. >> that risk is still there, and it's a total example of government dysfunction that we've had seven years to figure out this problem and we've done nothing. >> brown: briefly, do you expect some resolution? you're laughing as i say it. >> i'm laughing as you say it. there is a big fight over this notion should we have the government in the housing market or not? should we just get the government out and let private capital-- if you consider big banks to be private capital-- finance the housing market? what would the mortgage market look like without that? and how do we-- how do we move forward? spht investors, the big hedge funds who have taken stakes in fanny and freddie have points of view on t

>> well, the cost -- the cost to your financial institution is probably pretty minimal. 're charging you a dollar, 2.50. it's nowhere near that -- >> pennies, right? >> in all likelihood. maybe small coins. the atm owner on the other hand -- i think the policy there has always been the bank's own customers get the access to the atm for free. so it's the non-customers that pay the freight. and that's one where -- that's where we see it go up year in and year out in large part. >> but even to them the cost must be minimal. they own -- wells fargo, i'm picking a name. wells fargo charges their customers nothing but they're charging me, a td bank customer, $3. their cost for that transaction is nowhere near $3. >> it's not the cost of the transaction as it's the network, upkeep for the network. all that is being borne by non-customers. something to keep in mind next time you're thinking of making an atm withdrawal, plan ahead so you can use your own bank's atm and avoid these fees. >> what can i do? i can avoid all of these, right? >> absolutely. the fees are completely avoid

has a brand which has survived throughout the financial crisis. everything that they and others were involved in were the brand that still has credibility and they are gaining market shares. that is part of it that we like. we're not keen on investment banking and that is the reason why we're we're happy that we are -- manus: i want to recap some of the headlines that we had from the e.c.b. and get your take on them. they released this report a few minutes ago and basically said that banks ease lending standards to companies in the third quarter. they say q.e. has had a net ing impact on the credit standards in the third quarter and here is the golden ticket. e.c.b. bank reports rising demands for company loans and for mortgages. this is nirvana, isn't it? >> not quite yet. it is a step in the right direction. it is not we have been -- we have seen some pickup in lending over the past six months in europe. previous to that, interest rates were very low but there was no confidence and there was really no activity. we're talking, you know, very small

the pieces that affect the financial services industry. but also, the issues regarding currency that we're discussing parallel to the goods and services discussion. as i think you know, when congress passed trade promotion authority, they made clear that they wanted this issue of currency to be very prominent in our discussions of trade. and we are working very hard and making great progress to get to a place where we will have greater transparency of what currency practices are pursued around the world. what kinds of interventions in countries are making to affect their currency value and to force a process to have these issues brought to a level where monetary authorities work through differences they have so that we can make sure that there's a level playing field where the u.s. is competing on a fair bases, not unfairly with other countries doing things to essentially deflate the value of their currency to gain unfair advantage. i think we're making real progress in that and it's parallel to the conversations going on in atlanta. >> on