to our financial system. again, i don't think dodd/frank does that. so let me get to the rating agencies. this is actually something where dodd/frank tries to go in the right direction. unlike previous housing booms and busts, like the savings and loan crisis the recent one was particularly tied to our capital markets. and i think it made it much more destructive in the same way, not forgetting the savings and loan crisis was expensive. we had a recession. as peter mention said one of the three recessions that took longer than usual was the post savings and loan crisis. again, there was something special about this one. to be one of the things that was something was securitization and the way our mortgage and houses markets were lincolnedked to capital markets. it would have been impossible without the ratings agencies. what we witness said was outsourcing of due diligence. and of course let me first say i think the rating agencies provide valuable in sights. they certainly have an important role. but i also believe it works best when there is a diversity of perspectives. we don't just rel

i want everyone everyone to have a contest. dodd frank directed regulators to make substantial changes to the structure of the capital markets without understanding the consequences of those, as, some have been good, some have been bad. some of the good, you have risk management procedures that have totally changes the industry and the way it operates. the bad was that dodd-frank is micro managing trading behavior, that is impacting liquidity. we no longer have freely functioning capital markets, what we do have is a capital market that's been centrally planned by washington regulators who are terrified of risk the volker rule was put into place by a third degree amendment on the senate floor the actual text was negotiated in conference committee. there was no hearing to discuss what this would do to our capital markets. the policy, although it may be designed to achieve good, is to prevent banks from using the deposits backed by the fdic. when you hear the term casino gambling mentioned this is what they're talking about. but after 950 p

again, to me dodd frank ms. i missed what was an important opportunity to rationalize our flawed consumer finance laws instead of those laws along with powers transferred to unaccountable agency whose bureaucrats can force preferences on consumers. i fear that the agency will do for consumer financial products what the federal government has done to our mortgage market which is, peter i think demonstrated, royally screwed it up. speaking of mortgages, let me spend my last few minutes talking about the qualified mortgage and the qualified residential mortgage rules. so this is something that i think there's great agreement on even if you look at peter's dissent, the other dissents and look at the majority of opinion, there's actually one consistent observation through all the committee members. and that's problems in underwriting in the mortgage market. that's agreed upon. what's not agreed upon is why. so dodd frank does recognize the special role of poor quality mortgages and the crisis. unfortunately dodd frank

to financial system. i don't think dodd-frank about this. so they get to the rating agency. this is something where dodd-frank tricycle in the right direction. unlike previous housing booms and busts like the savings and loan crisis, the recent one was particularly tigar capital markets and i think it made it much more destructive in the same way not saying the savings and loan crisis was excess and we had a recession and one of the three recession that took longer than usual was supposed savings and loan crisis but do something special about this one. to me one of the things that was special was securitization anywhere housing and mortgage markets were linked to capital markets. quite frankly would've been impossible without fannie or freddie but also impossible without the rating agencies. what we witness wasn't outsourcing of due diligence by regulators and investors to the rating agencies. and, of course, let me first say i think the rating agencies provide valid insight. they have an important role but i believe modern works best when a corporate the diversity of perspec

back to dodd frank. dodd frank put a lot of regulations particularly directed to the banks, and particularly directed to the large for banksur banks, the people selling bonds for the united states, primary dealers, if you would. a lot of it overlapped with the security exchange commission. if you go look at elizabeth w warren's letter to mary jo white, they are not laws. if you look at eric holder going back to the people who created the housing crisis thing, and the revolving door in washington -- we need more competition. i don't even know what line to call in. the democrats and republicans are really not serving me. host: do you think it was the banks that are to blame or were to blame for the financial crisis, or the regulators and the lack of action? caller: i do not think it was either. i think people were sold this notion that debt for housing and things of that nature is an asset. it is an asset if house prices keep going up, but it is a liability of if house prices stay the same or go down. it is

see that dodd-frank was actually a proportionate and targeted response to a devastating financial crisis that had real impact on an awful lot of families. i'm sorry about that. dodd-frank is not perfect. there are clearly issues around some things like fannie may and freddie mac. today, the vast mortgages are backstopped by the federal government because we didn't reform on freddie mae and fannie mack. and the republicans have been controlling this chamber. we should take that up. i'm very proud to be along with congressman delaney and congressman carney, sponsor of legislation that would do just that. there is still difficulty for americans who should probably qualify for getting that mortgage in getting that mortgage. they swung the pendulum a little far. at the core of the crisis in 2008 where mortgages that a lot of people shouldn't have been, an overcommitment to make every american a homeowner, to have complicated mortgages. so carefully, we ought to look at what is happening. there are more technical issues. there is -- there are questions about whet

the theme of dodd-frank is, let's expand bank like regulation to everybody else. so again, think about it that way. the notion of dodd-frank, if only agi was regulated as well as city bank was regulated everything would have been fine. >> thank you mark. i'm going to let each of the panelists, in order add something if you would like or take up something somebody else said or reiterate a point. maybe two minutes each. peter peter? >> thanks. there were a couple of things that occurred to me we might add a little bit. first of all, i've heard about the costs of swaps. you didn't cover that as much as we might have covered it, but that and also the question of hedging under the voca rule. that's also a problem. we talk about market making. market making is a problem. you can't distinguish it, but it's also a problem with hedging. a lot of activity that banks engage in is hedging activity. that also looks a lot like prop trading. so how -- today i think is the day that the the dodd-frank, that the rule goes into effect. how are banks going to deal with this? >> well t

i want to follow up on senator corker and his question. dodd frank requires big institutions to submit living wills and a plan for how to be liquidated in a rapid and orderly fashion without bringing down the economy or needing a taxpayer bailout. by law the fed and the fdic are to determine if these are credible or not, and if they are not credible, they can be ordered to simplify structures or sell off assets. last august, the fed and the f eic identified significant problems with the living will submitted by 11 of the biggest eggs in the country. the fdic determined that these living wills were not credible, but the fed did not. if the, the fed said banks did not "take immediate action to improve their resolve ability and reflect those improvements in "their new rick nash living will -- improvements" in their new living wills. i know you have not completed reviewing the living wills, but i want to make sure we're clear on this point -- will the fed find living wills not credible if the bank has not fixed each of the problems that the agencies iden

dodd-frank. mr. huizenga: i think that i have to disagree a little bit with you. we know that there's a tremendous amount of dodd-frank that we have seen play out. but this is something i'm not sure everybody understands. they're still writing the rules. five years into it, we're still writing the rules. i don't think that was your intent, was it, at the time that this was passed? mr. hensarling: it was never my intent to support the law in the first place. under then ranking member spencer bachus of alabama my predecessor republicans had put forward a different law. and it was about bankruptcy as opposed to bailouts. instead what dodd-frank did was codify bailouts into law. it codified this whole concept of too big to fail institutions. i believe there's not one financial institution in america that's too big to fail. the american financial system is too big to fail. but not one particular financial institution. so we offered a different law in the first place which was totally ignored by the democrats at the time -- democrats. at the time they enjoyed a supermajo

so section 939 of dodd-frank gives a nod to this problem. it says you should remove statutory references to the rating agencies. unfortunately, that removal ended there. dodd-frank required, of course regulators to do a study. i forget the number of studies as many of you know, it'll almost 400 required rulemakings and almost a hundred studies. but that aside, what is required from the regulators and the rating agencies -- agencies is do studies about reliance on ratings. there's no requirement for the regulators to reach a certain conclusion, for the regulators to reduce that reliance and sadly, the regulators have largely chosen to continue that reliance and increase it in many instances. that would be not a big deal if most of the reliance on our laws came from statutory rather than regulation but that's not the case. the vast majority of reliance on rating agencies comes from the decisions of regulators, and dodd-frank doesn't change that. so to me, where we have a fig leaf where we needed a forest. we needed serious reform of the rating

host: that was hillary clinton talking about the need to go beyond dodd frank. we are speaking with julia gordon and norbert. do you think we need to go beyond dodd-frank? guest: first i want to say hillary is absolutely right about what she says. there is still lots of work remaining to be done to make the system safer. i want to focus on one particular part of that clip, which is the travesty of justice that nobody went to jail. we didn't go up against the executives who we know knew what they were doing. they have built a system where it can be very, very hard to go after them. i know that there was certainly a lot of effort to go after them. but we have to make sure that in our system we have laws and rules of the road that are able not only to hold larger institutions accountable but that can hold individuals accountable for bad decisions. i would say one unfinished piece of business has to do with executive compensation. we just keep paying these people to rip us off. and that is something, even when you can't put somebody in jail, you should at least be ab

so hope springs eternal but if democrats are going to decide that dodd-frank is a brand to be protected or a legacy to be secured notwithstanding the unintended consequences brought into 2300 page bill come forces forforeign rules to be promulgated, i don't even think we quite a two-thirds of the rules finalized as of yet and just we will be somewhat at a loggerhead. having said that, i'm thoroughly convinced that the left was working on obamacare before obama was even born. so this may be a long labor. i'm a patient man acting by washington standards, relatively young. >> another question right next -- do you have a question? all right. fight over your, please. >> our future.org. my question is you've mentioned that they been declared significantly important financial institution, you're basically codifying too big to fail. and if this is true then why is metlife suing its designation as too big to fail? >> welcome to have to ask metlife. i suppose as an engine government didn't want to have a bank, a bank capital standard imposed upon them. it's a completely different business model.

it seems to me that through dodd-frank that it is a matter of shoot, then aim. w we are tried to be reactive, but our people are feeling the pain of bad policy that has come out of dodd-frank. what are you going to be doing at the fed to alleviate this? are verylen: we focused on community banks. tipton: that is what they are worried about by the way. janet yellen: we formed a council that reaches community bankers and they come to see us twice a year. the entire board meets with them. the 12 federal onerve district versions of a regional scale of a counsel to advise these reserve banks on the factors affecting community banks. so we are listening. we are taking seriously the complaints that we hear and the specifics about our supervision and trying to be responsive. rep. tipton: i appreciate that. if i can put a little! on this. , i sat down with the community banks, they feel as if longer working with a banker but a federal government just to be able to comply with regulations that are currently in place. , theywe may have hearings do not feel that anyone is ac

i want to follow up on senator corker's question. dodd frank requires big financial institutions to submit living wills, a plan for how they could be liquidated. i want to quote the statute. in a rapid and ordinarily fashion in bankruptcy without bringing down the economy or needing a taxpayer bailout. by law, the fed and fdic are supposed to determine whether these plans are credible or not. and if they are not credible the agencies can order the institutions either to simplify their structures or eventually to sell off assets. so last august the fed and fdic identified significant problems with the living wills submitted by 11 of the biggest banks in the country. the fdic determined that these living wills were not credible. but the fed didn't. instead, the fed said that if the banks did not, quote, take immediate action to improve their resolvability and reflect those improvements close quote, in their new living wills, the fed, open quote, expected to find the new living wills were not credible. the 11 banks submitted their new living wills

dodd-frank is the last example. jw, further comments? >> sure, i just want to touch on another issue that i see in dodd-frank perpetuated -- perpetuating a problem that long proceeds dodd-frank the inclusion of immaterial disclosures. conflict minerals or minerals developed in the congo. they finance the bad guys. they finance the good guys and they finance people completely uninvolveded in the war. but they decided that we should stop purchases of conflict minerals in the west, and so there's a mandatory requirement for disclosure of conflict minerals for firms not only firms getting the actual hard commodities there, but also for firms well down the supply chain, who have no idea where the aluminum in the electronic parts came from. so i think it's telling when a liberal law ultimately convinces the "washington post" editorial board that it was a bad idea, which they have come out against conflict minerals. it's time to revisit the motion all together of including immaterial disclosures in security laws. both by legislative fiat and by the scc's own power. an

she has been answering questions related to dodd frank legislation, transparency at the federal reservem a and now monetary policy, even one on predatory lending practices to minorities. responding to questions from maxine waters, democrat from california. we will continue listening to her testimony and response to questions but i want to look at helm markets are responded to the testimony. >> basically, the major indices are all hugging the flatline as speak. seen janet yellen the nasdaq is up the highest. the dow and the snp are up by about 2/10

that is what we are trying to drive out in the first place with dodd frank to eliminate some of the systemic risk. >> i think you have put your finger on a very important phenomenon. we were well well aware when we put these regulations in place in dodd frank that wherever you draw the regulatory perimeter there will be a tendency for activity to migrate beyond it to what we say the shadow banking system. we clearly need to be very vigilant about monitoring risks that are migrating to that system and certainly in the federal reserve we have hugely ramped up our attention to shadow banking system. the ex-stock is focused on risks developing broadly through the financial system in shadow banking and the financial stability board has a large work program devoted to shadow banking. we are thinking about regulations we might address like minimum margin requirements that would apply not only to banking organizations but more broadly. that might address some potential risks in the shadow banking system. of course we have seen some heightened attention to risks but the fcc and money market funds whi

that is what we are trying to drive out in the first place with dodd frank to eliminate some of the systemic risk. >> i think you have put your finger on a very important phenomenon. we were well well aware when we put these regulations in place in dodd frank that wherever you draw the regulatory perimeter there will be a tendency for activity to migrate beyond it to what we say the shadow banking system. we clearly need to be very vigilant about monitoring risks that are migrating to that system and certainly in the federal reserve we have hugely ramped up our attention to shadow banking system. the ex-stock is focused on risks developing broadly through the financial system in shadow banking and the financial stability board has a large work program devoted to shadow banking. we are thinking about regulations we might address like minimum margin requirements that would apply not only to banking organizations but more broadly. that might address some potential risks in the shadow banking system. of course we have seen some heightened attention to risks but the fcc and money market funds whi

to look at it. that is why, five years ago president obama signed the dodd frank law. let's take a quick look back to review the crisis and the cost. almost seven years ago it began spiraling downward. when lehman collapsed on september 15, 2008, it ignited a series of almost unimaginable events that hope you had the chance to see on the way in. this being the museum, i thought it would be appropriate to review that story through the headlines that announced it to the world as it developed. this is monday, september 15. the papers did not know it but lehman had filed for bankruptcy that night. crisis on wall street as lehman totters, merrill seeks buyer aig hunts for cash. the next headline, u.s. to take over aig and $85 billion bailout : central banks inject cash as credit tries up. just one day after. mounting fears shake world markets as banking giants rush to raise capital. in the lower right-hand corner, already the world's worst crisis since the 1930's with no end in sight. an e-mail from the recent aig trial shows that friday, february 19, the internal federal re

maybe there are ways to improve dodd/frank. i'm not going to give up my quest for replacing it but i can walk and chew gum at the same time. i can work with democrats and find common ground and try to keep a few more community financial institutions alive and try to improve our gdp. that's a better question for them, and haven't seen either of them in a while. anyway, thank you very much for this rare privilege to speak before you. >> thank you very much. >> thank you very much. >>> when congress is in session c-span c-span3 brings you more of the best access to congress with live coverage of hearings, news conferences, and key public affairs events. and every weekend it's "american history tv." traveling to historic sites discussions with arthuthors and historians and eyewitness accounts of events that span the nation. coverage of congress and american history tv. >>> live now to capitol hill for a discussion on the various health insurance plans available to consumers amid changes to the health care law. participants will talk

to a hypothetical u.s. financial services holding company since dodd frank. not only related to dodd frank, some international measures too, but since. and if you look at this chart, it just reeks you know, impossibility. how do you do it? if you're not too big to fail how do you pay for the compliance costs? how do you provide liquidity in a situation where you have all of these rules and if you're lucky, the cost benefit has been analyzed rule by rule. it's something we policymakers have to look into. >> can i quickly say something about the hft question. the hft has a really bad name and they're not the boogeyman in the room if you will. in fact i think the report that was just released today will show that the hfts provided liquidity during the window when there was increased volatility. but i do think the report does say we need to look at the issue a lot more closely in terms of that trading strategy and whether it creates unintended consequences. i just want to put that out there. >> so i appreciate going back to, you know, not just regulations being a

dodd frank act. the former democratic congressman if massachusetts is the author of frank, a life in politics from the great society to same-sex marriage. thanks for joining us today. >> welcome. >> so you tell me. is dodd frank working? do you think the average american is better off today? >> in that regard, absolutely. first of all, the single beggest cause of the terrible crisis we had was that mortgages were being granted to people who shouldn't have gotten the mortgages and couldn't repay them. this is bad for them, bad for everybody on the block, bad for the financial institutions and for the economy. one of the things the bill did, over the objection by the way of people like congressman henserling who said we were interfering with free market. we made unenforceable mortgages of the type that caused the problem. the subprime mornls granted to people who didn't have income, had terms that almost guaranteeded failurer. they can't be made thim. that's almost a consumer protection and a protection for the subpoena. -- >> system what about too big to fail? it seems we have not improved that. the big banks have gott

to be putting forward? it seems through dodd/frank it's a matter of shoot, then aim. now we're trying to be reactive but at home our people are feeling the pain of bad policy that's come out of dodd franck. what are you going to be doing at the fed to alleviate this? >> we are very focused on community banks. >> that's what they're worried about, by the way. >> we formed a council that consists of community bankers and they come to see us twice a year. the board meets with them. they are also in each of the 12 federal reserve districts versions of on a regional square of a counciler council to advise the reserve banks on factors affecting community banks. so we are listening. we are taking seriously the complaints that we hear and the specifics about our supervision and trying to be responsive. >> i appreciate that. if i can put a little exclamation point on that. sat down with community banks in my district. they feel they're working for the federal government. they are working just to be able to comply with regulations currently in place. while we may have hearings,

i'd like to expand on what it seems to be that through dodd frank, it's a matter of shoot then aim. and now we're trying to be reactive. but at home our people are feeling the pain of bad policy that's come out of dodd frank. and what we're feeling -- what are you going to be doing to be able to alleviate this? >> we are very focused on community banks. we want to -- >> that's what they're worried about, by the way. >> we formed a council called cdac. they come to see us twice a year, the entire board meets with them. there are also in each of the 12 federal reserve districts versions of -- on a regional scale of a council to advise the reserve banks on factors affecting community banks. we are listening. we are taking seriously the complaints that we hear and the specifics about our separation and trying to be responsive. >> i appreciate that. if i can put a little exclamation point on this. i sat down with community banks in my district. they feel they are no longer working as a banker, but they are working for the federal government. they are working just for -- to be able to comp

dodd-frank is the last example. j.w. further comments? >> sure. i just want to touch on another issue that i see in dodd-frank perpetuated, perpetuating a problem that long precedes dodd-frank which is the inclusion of immaterial disclosures in securities disclosures. i mean this to apply to both conflict minerals disclosure and to lease payments disclosure for oil. minerals developed in the congo they finance the bad guys, they finance the good guys, and they finance people completely uninvolved in the war but oxfam decided that we should stop purchases of conflict minerals in the west. so there's a mandatory requirement for disclosure of conflict minerals for firms not only firms getting the actual hard commodities mined there but also for firmings well down the supply -- firms well down the supply chain who have no idea where the aluminum for their electronic parts came from. so i think it's telling when a liberal law ultimately convinces "the washington post" editorial board that it was a bad idea -- which they have come out against conflict minerals -- i th

to pass obamacare 2.0 who want to pass a cab and trade bill or a carbon tax, those who want to pass dodd-frank 2.0 or any additional government spending they'll be able to do it. they'll be guaranteed an opportunity to get an amendment and be able to vote on that amendment and it will pass in the united states senate. y i don't think that's in the best interests of the united states senate. i don't think it's in the best interests of the 27 million people that the junior senator i represent together and i certainly don't think that's in the best interests of this institution, which we all revere if all 100 senators have the opportunity to offer an amendment without restraint then there will never be any deadline, there will never be any conclusion, and we won't be able to do the simple work that we have been asked to do on behalf of the american people. and the final point mr. president, i know the senator, the junior senator feels passionately about this amendment, but the fact of the matter is we have a process that's been set up to review the iran deal that president obama and secretary ker

regulation of high-frequency trading, that she would push back against the attempt by lobbyists to weaken dodd frankcate she was going to change dodd frank with one exception. too big to fail remains too big a problem. that's not the same thing as calling for a breakup of big banks as bernie sanders and martin o'malley have done. we'll wait and see the next few weeks when she lays out the details of her policies exactly what she means by that, guys. >> is there a sense that it's a little bit politically motivated? given the economy is such a small part of the economy right now, it seems odd to call out uber and air b&b. what's the general sentiment in terms of reaction? >> reporter: well, of course it's politically motivated. we're in a political campaign and she's trying to appeal to workers and address the frustration, the anxiety, the anger that a lot of americans feel that they have not been moving ahead and, yes, the sharing economy is a small part. it illustrates the decline in jobs with big corporate america with big benefits, with vacation time, paid leave, all those sorts of things are not

to do some fixing. when one party passes legislation virtually alone. in the case of dodd-frankdable care act, very few republicans were involved. it is important to revisit it. stephanie: a bipartisan group is looking at ways to tweet dodd-frank. erik: nike has given its ceo i stop reward 10 times higher than what -- a stock reward 10 times higher than what they usually get. call it a retention bonus. ohio governor john kasich will become the 16th republican to enter the presidential race. he served 18 years in congress before being elected governor. his first test is getting into the presidential debate next month. he is running 12th in the polls right now. stephanie: it is a huge, massive day for tech earnings. what are investors watching? michael welcome. great to have you in town. let's start with apple. the apple watch launched to so much fanfare. we have already seen sales drop 90%. >> by one survey that had certain biases. stephanie: i guess you are about to say you love the apple watch. >> this is one of the reasons why companies need to be private , the case could be m

to know and follow. this is the fruit of the dodd-frank regulations. i would say that there are a lot of things that we need to discuss with this bill. let me just highlight a few of those. let's just get common agreement. can we all agree that the community banks the smallest banks across america most of them in rural communities did not cause the financial collapse of 2008? in fact, they didn't even contribute to the financial collapse in 2008. the smallest community banks across the country are vital accesses to capital for farmers small businesses, main street folks and folks that just do deposits of their savings and checking accounts. these are small-community banks. more than 1,200 counties with a combined population of 16 million americans without those community banks they would be severely limited to any kind of access to banking. big banks tend to focus on the biggest loans and in big towns. small community and traditional banks, they focus on smaller communities. in my state in oklahoma, you go to every hometown and you're going to find a sc

she has been answering questions related to dodd frank legislation, transparency at the federal reserve am a and now monetary policy, even one on predatory lending practices to minorities. responding to questions from maxine waters, democrat from california. we will continue listening to her testimony and response to questions but i want to look at helm markets are responded to the testimony. >> basically, the major indices are all hugging the flatline as speak. seen janet yellen the nasdaq is up the highest. the dow and the snp are up by about 2/10 of 1%. the investors are clearly watching to see what she might say or imply. let me take you over to the tenure treasury yields -- it's similar to equities. it has been staying close to the baseline this morning. . percent at about 2.41 also the dollar is trading higher. there it is. day, near its highs of the it's just off the highs of the day and it's a 2-week high. the dollar jumped when janet yellen started speaking. pimm: thank you very much. let's continue listening into testimony from federal reserve askinganet yellen who is -- answe

the five-year lookback of dodd frank, and our colleagues say we have enshrined too big to fail and wonder if you can say whether or not dodd-frank enshrined too big to fail. >> i don't believe it enshrined too big to fail. so it gave us tools to raise capital and liquidity, to impose capital surcharges on those firms that we deem most systemic, to use stress testing as a methodology, to make these firms much less likely to fail and the amount of capital and liquidity has increased massively since the crisis. in addition, dodd-frank gave us both title two orderly liquidation authority which would be a new rule -- >> i have ten seconds left, so i think you covered it. back to my idea about the labor market. do you think ending the sequester and raising the minimum wage would be good strategies for getting our labor markets -- >> i think that's for congress -- >> i knew you would say that, and that's why i saved that for last. >> and the chair now recognizes mr. garrett from the sub committee. >> in front of me last night i read through what is called the joint staff report, the u.s. treasur

to jump in their. thank you very much. chris dodd of dodd-frank. good morning. ♪ tom: good morning everyone. he senator from connecticut, former senator chris. dodd. your comments linking mr. sanders to mr. trump, that is the third rail across the political landscape. what are we going to do to jumpstart labor america? >> this is a point i wanted to make. one more person adding another adjective contributes much to the debate. even though they are different approaches to solving problems that level of frustration -- you will not surprise me that the people showing up for bernie and donald trump are neighbors. they are feeling >> the same effect of what they believe is stagnation and their ability to retire with enough income to take care of themselves and their kids will move up. to educate their grandchildren. that is critically important. it is not just creating the jobs, that has been the good news. with unemployment around 5.3% what are those jobs? are we providing jobs in the areas where they have health care benefits and pensions? i represent the motion picture industry as the head of t

to live with it. post: financial reform should not be hard of an issue areas however in the senate there were three republicans who voted for the dodd frank l. can you talk about your efforts to garner republican support? sen. dodd: the actual vote itself, you end up with the numbers you have cited. when evening in the follows 2009 or 2010. i asked all the members of the committee together in the senate foreign relations to many hearing room on the first floor of the capital. i did not tell my staff what i was going to do nor did i share what i was going to do with anybody else. i announced i was. to work on the legislation. i announced that mark warner and bob corker would work on too big to fail. chuck schumer would be working with michael crapo on corporate -- corporate governance. i would be working with thick shell be. -- deck shelby. i waited for someone to ask who the hell are you to tell us what to do but everyone liked the idea and they went off staff and peers. this is to back to take -- too big to take on. they made worthwhile contributions to the product you see today. they did not finish it in every case. they could not quite

to fail. >> i don't think frank dodd is trying to be too big to fail. it directed us to be increasing the safety and soundness of financial institutions particularly those that are most systemic. it gave us tools to raise capital and liquidity to impose capital surcharges on those firms that would be deemed most systemic. we can use stress testing as a methodology to make these firms much less likely to fail and the amount of capital and liquidity is increased massively since the crisis. in addition dodd frank gave us both title to orderly liquidations which would be a new tool to resolve. >> i think you've covered it. back to my idea about the labor market. do you think ending the sequester and raising the minimum wage would be good strategies for getting our labor markets back together? >> this is a matter of congress. >> i knew you would say that. >> the time has expired. the chair now recognizes the gentleman from new jersey. >> good morning. in front of me last night i read through what is called the joint staff report the u.s. treasury market on o

it allows you to do things you other wise could not do. and dodd frank was a grab-bag wish list from the left that had nothing to do with the financial causes of a financial crisis and let us remember, and i'm sure peter is well aware of this because he was on the commission, the commission that reports on the what the root cause of the financial crisis were came out after dodd frank was already passed. so it is kind of like playing basketball and the other team hasn't shown up on the court. you are dribbling and dunking and they decided to dribble and dunk and unfortunately the american people, i think, have again suffered less freedom, less prosperity, and less stability because of it. and my hope still is that in divided government there will be at least enough democrats to say we can clarify dodd frank, maybe there are ways that we can improve dodd frank. i'm not going to give up my quest for replacing it. but i can walk and chew gum at the same time so i can work with democrats and find common ground and try to keep a few more community financial in

dodd frank into law. good morning. ♪ tom: good morning, everyone. let's get to a single best chart. ive years ago today, president obama signed dodd frank into law. that is five years of regulation and that's the story of our single best chart. this is the impact on how much tangible equity banks are holding. mark whitehouse can up with this chart. mark we are looking at this -- is this enough? mark: no, but i have to give tom mahoney credit for this chart. you can see capital has gone up about 20%. even if you double a small number, you still have a small number. we are at about 5%. what does that mean? it is as if you bought a house and put 5% down. the value of the house falls by 5% and you are out of equity. if that happens with the whole banking system, that's a problem for the economy and we have experienced that recently. brendan: i have seen evidence on the subject and they suggest equity would be as high as 25%. there's no political will to get near that, right? mark: yes, there isn't. is it regulatory capture are the regulators listening to the argonne's presented by banks?

to the newseum in washington. one day before the anniversary of the signing of the dodd-frank law. jack lew would be speaking shortly. to hear ahead of that from chris dodd, former senator of connecticut, and representative barney frank of massachusetts, former chair of the house financial services committee. the current chair is a jeb hensarling and didn't opt they did in the wall street to he writes that tuesday will mark five years since president obama sign at the dodd-frank law. the most sweeping rewrite of the countries financial loss since the new deal. mr. obama told the coach of the legislation would quote lift our economy. the statute itself declared that he would quote into the ghetto and promote financial stability. jeb hensarling writes not of that has come to pass. too big to fail institutions have not disappeared. big banks are bigger small banks are few. some of the right to the chin of the house financial services committee. we will hear from barney frank and chris dodd and a bit. while we wait a look at some of the activities today. the state department, u.s. and c

there seems to seems to be a growing consensus on both sides of the aisle that dodd frank notwithstanding its intentions, to constrain 13.3 did not hit the mark. in fact elizabeth warren has been outspoken on the matter and is introduced bipartisan legislation on the senate side in this regard. setting aside the arguments on whether or not the aig bailout was a good thing or bad thing post dodd frank is that your interpretation that the fed retains the power to do a similar bailout of aig where counterparties and creditors could receive 100 cents on the dollar including foreign entities? >> so let me start by saying the role of lender of last resort is a critical responsibility of the central banks to fulfill around the world. it's why the federal reserve's was created. i i do believe this is a very important power we need to address liquidity and pressures in times when there is unusual financial stress. however congress congress did amend section 13.three in dodd frank to allow the reserve to extend emergency credit to the financial system only through facilities that have broad based e

the five-year look-back of dodd-frank, our colleagues say we've enshrined too big to fail. u could set the record straight about whether or not dodd-frank enshrined too big to fail. >> i don't believe dodd-frank enshrined too big to fail. first of all it directed us to increase the safety and soundness of financial institutions. and particularly those that are most systemic. so it gave us tools to raise capital and liquidity. to impose capital surcharges on those firms. that we deem most systemic to use stress testing as a methodology. to make these firms much less likely to fail. the amount of capital in liquidity has increased massively since the crisis. in addition dodd-frank gave us both title ii orderly liquidation authoredity, a new tool -- >> i've got ten seconds left. i think you've covered the -- it. back to my idea about the labor market, do you think ending the sequester and raising the minimum wage would be good strategy getting our labor markets together? >> this is i think matters for congress to debate. >> i knew you would say that. >> the time of the gentlela

dodd frank anniversary. in historically unprecedented ways. the evidence continues to mount that since the passage of dodd frank our nation is less stable, prosperous, and free. we continue to be mired in lackluster halting economic growth. middle income paychecks are less than post war recovery, and has ms. waters told us a month ago is that millions continue to teeter on the brink of poverty and collapse. one way that our economy can be healthier is for our federal re reserve to be more predictable. like the great moderation of 1987 to 2003 the fed followed a more clearly communicated, understandable, and conventional rule. america prospered. today we're left with guidance that remains opaque and improve vagsimprove -- improveizational. they create a healthier economy for themselves and us all. one former fed president say it creates inefficiency in the capital mark the fmoc gives lip service to policy predictability but it's statements are vague. the fmoc preaches that they are data dependent, but will not tells what data and how. following a monetary policy convent

the congress required us to do that as part of the dodd frank act. congress did a couple things they 1st said that they were going to ban outright any sort of arbitration clauses pre- dispute arbitration clauses. a significant shift away from the permissive attitude to the federal arbitration act that developed. they also said that as to the rest of consumer financial products and services they require the bureau perform a study and report to congress on the potential effects of arbitration. we did that carefully and deliberately. take a deliberately. take a couple years of research, a significant report to the areas. we did issue that report earlier this year. the statue says is having done that can't perform that task it was them for the bureau to consider what might be done consistent with public interest and consistent with the results of the study to either modify or address pre-dispute arbitration agreements for other consumerthe consumer financial products and services. we have determined having digested our own study and got a great deal of fe

they are now looking for ways to tweak dodd frank. lawmakers in the u.s. d iran must sign off on the deal -- it calls for iran to abandon atomic weapons of they want sanctions lifted. the iranian supreme leader says that his country will not stop the proxy wars in 11 -- yemen and lebanon. secretary of state john kerry call that worrisome. kerry: all i know is that i have to take it at face value. things can evolve that they are different. if you use the policy it's very disturbing. wha -- alix: the plan was presented to the national parliament and it was, according to, world powers who caved in the talks. president obama is thinking sean -- thinking china for helping to negotiation. unemployment rates fell in 21 states. widespread job growth and a shrinking workforce reduce the ranks of the unemployed. meanwhile, unemployment rates fell in 12 states, nebraska has the lowest job rate -- jobless rates and west virginia has the highest at 7.4%. those are your top stories. be a record5 could year for m&a. $2 billion in acquisitions and investments haven't inc..