in 13 of 80 transactions, card holders did not follow requirements related to restricted transactions. for example, in three instances, card holders not acquisition professionals purchased gym memberships that had prepayment of services. two of these purchases were for family memberships, not just the epa employee. our audit found it did not review purchase logs for 14 of the 80 transactions. one transaction the approving official incorrectly assumed that since he had preapproved the purchase he did not have to review quarterly. conseque consequently, he was unaware that the card holder amended his prior approval to purchase an additional item for $805 for personal use. in conclusion, 75 of 80 reviewed transactions were not in compliance with policies. these transactions were undefected because purchase card team improved oversight potentially saved money by reducing prohibited, improper and erroneous purchases, which would be beneficial in the current budget environment. to improve transparency, the oig published reports with laws, regulations and procedures. as part of this effort,

offering up transactions and the loan is for 4 years. >> it was 4 years. >> how is it going to be paid this is one of the reasons we come before you today i'm sure you're aware of the tiff loan is supported by a pledge of tax increment revenue we've been getting from parcel t and 6 other components is additional capital contributions from the transit in general $417 million we expect to get even though initial tax increment is loans $15 million it is not able to pay the hundreds and $75 million we'll capitalize interest we'll on day one have an account to pay off the interest requirements for investigators and then what the assumption is courtney mentioned hopefully by third quarter of next year we will expect to meet the tiff requirements and get the disbursement and take out the payments. >> do you know how the - >> i'm sorry. >> the interest rate. >> i believe as indicated i hope you received in our packets but it is a loan based on months it is currently around 2.33 and the credit spread in the first year will be 2 hundred and 25 basis points the overall amount will be 2 you know a

what are we doing to cut off the transactions that are not in cash? it's got to be through banks. >> we are working to understand exactly how those transactions occur whether it is in cash or through banks. through banks, we will be able to address that. >> which means we don't know. >> the chair recognizes the gentleman from texas. >> thank you, mr. chairman. thank you for being here. as you were kind of laying out the plan that treasury has for the counterterrorism financing, i think one of the things that came to my mind was two things. one, how long do you think it will take to get into this plan to the point where we see some diminishing amount of resources go into isil? >> it's a very good question. it's a hard question to answer. we have begun to e see some d n diminishment in revenue from the oil sales. as i noted, they were earning, on average, about $1 million a day over the summer. in particularly because of the airstrikes, the mobile refineries as well as other military activity, we have seen a decrease in the -- in what we estimate to be

the proposed transaction, if authorized by the port commission, we would go up to state land, seek the funding that i talked about, subject to your approval, daggett street would be transferred in an as-is position from the port to the real estate division who would pay us $1.6 million from a grant from the state of california to support parks associated with housing development. we expect that that would happen sometime early next year. and after that the developer would be in a position to build this park. so, with that, i'll conclude my presentation and answer any questions you have. >> so moved. >> second? >> second. >> any public comment? seeing none, public comment is closed. commissioner? >> well, we just got the one? >> yeah. i wish we had a dozen of these. we actually have a few other streets. there are some that were congregated right around the hold hunters point power plant that we included in sb 815. there was [speaker not understood] quite close to daggett street. i'm forgetting the name of it, but it was the subject of prior litigation that the port commission resolved.

onstart the transaction the amazon website. they come into our shop on amazon.n the traffic is sent through to us, we pay a small fee. the cost of the shipping is us, fulfillment is us. we have a shared customer experience. for prime customer, the came to you through amazon, you are offering the same terms or better. >> better terms. >> a question for you, tom. paypal is leaving ebay. so far as i know, i can't pay using paypal and amazon. is that going to change? >> the way amazon would make every decision is what do our customers want? if we see a lot of demand of amazon customers to use paper now, we would put it on. we haven't seen that so far. but we have some other examples where we have seen payment methods in china that we are putting on to the site. >> i ask because there are some areas in which amazon and ebay/ paypal compete with each other. this is one of them. paypal does some payment processing and fulfillment for small businesses that are trying to build a presence online. competitors can be customers, customers can be competitors. what i'm trying

what they're looking at, they're not only looking at our online transactions. they're finding new vulnerabilities in our physical point-of-sale transactions. when you go to a store a target, a neiman marcus and you make that credit card transaction, they have ways of getting in there. what they have as sql techniques. they're injecting bad code into the computer systems of their -- neil: at the register? >> exactly. that's where the point-of-sale is. it's the registers. when you're making that credit card transaction, they're reading the numbers and they're reading your code. they're reading all the personal identifying factors that you have on that card. neil: well, what do you do? someone like you knows this stuff inside and out. i see people buying stuff with cash. and they're just buying that way. i used to think it was a little outlandish since i see more people doing it, maybe not. >> i do use cash, especially for transactions in places where i know they've had an attack. so places like home depot, target, i tend to use cash. if i'm pretty confident that

what are we doing to cutoff the transactions that are not in cash. it has to be through banks. >> very brief answer, please. >> we are working to answer how that occurs whether it's in cash or through banks. we will be able to address that. >>> thank you, chris chairman and secretary thank you for being here. you are kind of laying out the plan that they have for the counter terrorism financing. the question in my mind and they get into the point where we see diminishing amount of resources are going to us. >> it's a good question. it's a hard question to answer. we have begun to see dimini diminishment on the oil sales. we noted they were earning on average about a million dollars a day. over the summer. particularly because of the air strikes. as well as other activity. we have seen a decrease in what we estimate to be the revenue from the oil sales from about a million dollars a day to several million dollars a week. there was progress there. the history of our counter terrorist financing work, not isil-related, but more generally is that it is sm

the transaction screen is a ten-second advertisement thereat occurs in transaction while your transactionessing. we don't hold up transaction time. the screen that sits on top we take advantage of all of the foot traffic in and out of a venue. >> talk about economics behind this. who gets paid on the ads? >> after free atm takes commission for serving the advertisement we split the revenue between the host of the atm and the operator who normally gets about a dollar. >> so what has been the consumer reaction to this so far? >> they love it. >> one question is where. >> everybody hates bank fees but if i had to watch an ad and it delayed me i would almost rather pay the bank fee as much as i love the advertising model being on television. >> it only makes sense that we do not hold up transaction time. we are trying to provide convenience to the consumer. >> you are trying to disrupt atms which is the oldest story in the world. what about mobile payments? isn't that a threat to you? it is easier to just whip out your phone. >> a lot of people think mobile payments are easy but a lot of step

we are processing close to 100,000 transactions a week.xpect, it is a ramped up, but the embracing by merchants and consumers is very large. i think what is really important is it is all about enabling the merchant, the consumer, giving the client a chance to do business the way they want to do business. 100,000 transactions a week, is that where you expected to be? >> closer to what we expected but i would consider this a constant ramp. you will see a lot of enablement at the point-of-sale. you see a lot of enablement on the web. you see the in-app solution growing. everybody is picking about it, embracing it. it is a great start. >> october 2015 is a key date because merchants around the country are going to have to start putting in these so-called chip and pin terminals. emb technology. will that drive the uptake of things like apple pay and other digital solutions? emv is a huge point in time for everybody to embrace change. it will change at the terminal, change at the point-of-sale. there is a huge embracement. if people have to swit

you have a lot of micro-transactions.heir 1.3 billion population, $9.7 trillion gdp, it's creating tremendous amount of growth. that may bode well for technology companies. >> it was quite a coup for credit suisse to get you. >> i think they have a great corporate culture. they have very strong bankers. it's a joy to be a credit suisse. they are very thoughtful bankers. some of the best bankers i have ever met came from credit suisse. i learned a lot from them. it's a good entrepreneurial culture. >> credit suisse missed facebook and twitter. how you make sure you don't miss the next thing? >> we have to be focused. it is a competitive business. we have great competition, great bankers. we have to be extremely focused and spend time with the companies early on, to do what we did with alibaba. we just had one of the biggest ipos out of new york. i try and see as many companies as possible. it is an exciting time. i'm excited to stay focused. >> what do you think about a company raising money at a $40 billion plus valuation

>> well, what prevents most directly the citizen from conducting transactions is isil. and isil's efforts to control that territory. but the use of the banking system to make a transaction coming out of the area as i noted earlier is what we're attempting to prevent. >> okay. you have answered this question, but with two inconsistent answers. if you get an international banking transaction where a civilian business person, not affiliated with isis but located in mosul is moving his investments around on wall street or is trying to buy replacement parts for his factory, is that something where if a bank is involved in that transaction they will be sanctioned? >> it's not related to isil in any way? >> well, except the guy is located in mosul. >> well, there is obviously an intelligence question imbedded in there, do we know this person is or is not affiliated with isil? if he's not affiliated with isil, it is not a sanctionable transaction. >> when we get serious it will be, we did not conduct ourselves in world war ii and say every frenchman can conduct because just bec

just to put this transaction in cop text, this is a huge transaction, $34.6 billion.erprise value of $38 billion. that's the equity value for baker hughes. >> there has been suspension this deal would go hostile. >> there was suspension because baker hughes had said we are not doing it. what happened last week was they were in talks and baker said no good. now we are back and this is is a friendly transaction. >> halliburton was trying to force out many members of the baker hughes board to do this anyway. >> here we are this monday morning. i'm surprised this got done as quickly as it did. i thought it was going to turn into a valeant-style soap apra, but nonetheless, a huge transaction in the oil services space. partially a defensive transaction. >> right. the stock market is just figuring this out because the value on this is $78.62 per share of baker hughes. that stock closed at $59.89. it was indicated earlier in the $60 range. traders are just waking up to figure this out, up 21% with a gape of $13. getting up, the transaction is at $70.50 for baker hughes' share

what are we doing to cut off the transactions that are not in cash? it's got to be through banks. >> we are working to understand exactly how those transactions occur whether it is in cash or through banks. through banks, we will be able to address that. >> which means we don't know. >> the chair recognizes the gentleman from texas. >> thank you, mr. chairman. thank you for being here. as you were kind of laying out the plan that treasury has for the counterterrorism financing, i think one of the things that came to my mind was two things. one, how long do you think it will take to get into this plan to the point where we see some diminishing amount of resources go into isil? >> it's a very good question. it's a hard question to answer. we have begun to see some diminishment in revenue from the oil sales. as i noted, they were earning, on average, about $1 million a day over the summer. in particularly because of the airstrikes, the mobile refineries as well as other military activity, we have seen a decrease in the -- in what we estimate to be the re

some transactions are smaller than others. >> an average of 50 cents a transaction. >> i would have to get back to you. >> we don't -- something is missing here. i just don't think that's accurate. but you repeated that in your testimony. >> those are the the numbers that i have. those are department reported numbers. >> that's the report we have too. but again, something doesn't make sense there. if you could check that. >> yes. >> we will be leaving the record open for a period of two weeks, without objection, so ordered. so we will have additional questions e we will be submitting after this. okay, the 2012 law allowed -- and air force is not under this, but 2012 law allowed employees to be fired, dismissed, terminated, prosecuted. can you tell us, ms. casper, how many you know of terminated, disciplined or prosecuted? >> we recommended in our report that epa take action. epa was supposed to be taking action by september 30th. we haven't done the follow-up review yet for those actions. >> do you have of any? >> i'm not aware of any. >> could you check that? >> would the chair yield?

our gateways, those the process online and mobile commerce transactions, do three to million transactionsmonth. put together, we process half of the world's consumer card payments. with that kind of scale, we really are very excited about what we can do with innovation. >> like what? a creditt think of card terminal as a particularly innovative piece of equipment. >> how do you make it innovative? >> that's a good point. we are so excited about what we saw in the cell phone industry. if you think about what apple did with the purpose built cell phone. they turned it into a computer, connect it to an app store, and we can't live a day without it. we are trying to do the same for merchants. we are trying to take that purpose built terminal, but does a really great job of accepting a card payment securely, and have that device held merchants to track new consumers and drive more sales by connecting it to and creatingcons, an all-new channel experience. that is a commerce innovation. >> one of the barriers to acceptance for apple pay is the fact that there aren't that many terminals in this c

you are close on the transaction. been thehat has impact? ? support thing is it allows us to serve our clients on all the issues they consider strategic, m&a, their strategy, and equities. utah to any seo and that he does think they are most concerned about are their strategy and the m&a transactions, and their stock. we are in a position where we can be highly relevant to our clients on both issues. we are quite excited about this. you are able to retain the people at isi? >> we kept all but one analyst said we want to keep. and we are still working on him. all of the distribution sales and trading people as well. we are in a strong position. the size ofation all the large firms, and our intellectual content, and than all ofstronger them. since we announced the deal, and institutional investor came out with their annual research isi alone, without our analysts, moved from number 10 to number five, the first time an independent firm has been in the top five since doj with their in 2000. >> talk to me about the environment. i know october has b

it's processing the transaction and creating the card and fulfilling the card.backend, the business works just like ours. it's extremely couple mentor and there is lots of revenue and operating synergies between that business on the business we are in at retail. that expands our addressable market considerably. >> how much room is there in the gift card and incentive card market for multiple players? the company was acquired via giant processing card company and are doing digital only whereas you are still doing a lot of point-of-sale stuff. orwe partnered with gift they partner with us. many of the players out there come to us to be able to support the transaction. on the backend, we have connected to multiple proprietary platforms. many of the retailers across the country, they process their own gift card transactions. there are also many, over a , of third-party processes we are connected to. we have aggregated all of that and become one-stop shop for supporting gift card transactions in the digital world. >> how are you fending off cyberattacks? one would th

there is no fiscal impact to the city in this transaction. the city will not be a party to the loan and it is not an owner of any of the property at issue. however since the city is a party to a 2003 cooperative agreement made with caltrans which transferred certain sfait-owned properties in the area to the city and tjpa and since the city is a party to the board-approved 2008 option agreement for the purchase and sale of those properties, including state-owned property own you had by the city, tjpa and the san francisco redevelopment agency, agency, pars3 now ocii the city has to approve any amendment to any agreement including the option agreement. the city does not incur any indebtedness or approve the structure of the tjpa loan. rather it approves certain conditions which allow tjpa to move forward to obtain the interim financing and the loan it needs to allow the transbay center project to continue construction. the proposed resolution authorizes the director of property to execute the first amendment which permits, among other things, o

ipo four years ago and they wonder, on the backend, is first data processing the transactions? why hasn't your company benefited similarly? >> this is waterfront property. we came up with the lbo and hit the worst financial time in the world and, at the same point in time -- >> so did mastercard and visa. >> a lot of money was chasing payments. the position of the company was not designed to invest. now it is designed to invest and grow. we have built seven products over the past year. payment is a growth industry and you will see us continue to grow. >> what role will acquisitions play in the future? you have but three companies in the past year? >> yes. they are all technology companies, all someone startups that we enable. i am proud of the work our technology team does.

transactions may be more self-service.e the return on the real estate investment that you are making? pay rent on those locations and they are often prime real estate. >> they are. there is a seeing is need for locations area locations -- customers want to come in and talk to somebody. the footprint of ranches is not going to be what it was the past rid the large 6000 square foot branches are going to be fewer and fewer. footill see more 1500 branches, much smaller real estate used differently. large size of a apartment. thank you very much. up, something to come home to. steve schwarzman talks about his promise to hire 50,000 veterans. >> welcome back there it i'm stephanie ruhle. blackstone has made a big to hire 50,000 veterans over the course of the next five years. they have already hired 18,000. with veterans day coming up tomorrow, i sat down with steve schwarzman and found out how it's going. >> it's important. it is a moral thing to do. it is a good business thing to do. these are people who disrupt their lives an

is often what you really want in a sophisticated and complicated transaction. so, thanks for all of your time and your help and your energy on behalf of the port and in connection with projects, the parking lot, [speaker not understood], so forth. want to present you with a token of our appreciation that's worth less than $25. [laughter] >>> signed autograph baseball by john [speaker not understood]. [laughter] (applause) >> thank you. >> any further public comment? >>> president katz, member of the commission, port staff and public. so, first thing i'll say is i really hate praise. you might not know that, but my family does. but i am really humbled and honored to be here and i'll echo peter dealy to say i'm honored to be here with jeremiah, not just his myriad accomplishments, but what he keeps giving back to san francisco and the waterfront. i really learned about public service here at the port, learned it from the port commissioners who serve and the port staff and i've been honored to serve with all of you. i am heart ened about the legacy people are talk

of transactions you get go through the roof exponentially. the other thing that needs to be added into the equation is, cell phones are getting much cheaper. we have two and half billion people in the next five years from all corners of the globe that will join the on-line medium and be able to access information on the internet, health care affirmation, engaged in commerce, so the number of opportunities we have our huge, and e-commerce is already far greater than it was at the beginning. >> the reason it feels like a bubble is the financing higher key, of a sudden it went up. and it went up because these companies had a product and you could see over a billion people. so all of a sudden if you have a successful product to have a much better likelihood of success. so it depends on where you are in the company staged. if you are still building your technical team, you want to be careful to hire carefully, high-quality people, work very hard, classic startup model. you have revenue, you want to be careful to understand what the revenue growth

calls something called threat finance cells to track financial transactions in the middle east. you're nodding yes. >>> but do you note as a result of the president's troop withdrawal, can you explain how this lack of resources has -- has it impacted on our fight? and also, within the time we have here, i think the administration is talking about removing them from afghanistan, as well, these threat finance cells. will that have an impact? >> well, actually, picking up on the chairman's rendition of the classified sup lemt to this hearing, i can give you a more expansive answer in that setting. i can tell you that we are -- the iraq finance cell that had existed a decade agoo was dismantled when the activity -- the fighting on the ground was ramping down. i would like to leave the second half of this answer. >> objection. >> what we're doing to enhance our intel. >> the time of the gentleman is expired. the chair now recognizes the jeptleal lady from new york. >> yeah, thank you. isis is the richest terrorist organization on the earth and financially sophisticated, unlike the ot

this time last year john lewis had 14 times higher mobile transactions than ever before.are getting on their phones and potentially buying more. rationaleout the because last time we talked a lot about the retailers that did well with the ones that got that pricing strategy right and the ones that did not do well with the ones that didn't. >> added this phenomena run discounting this far ahead from the holiday season how does the logic work? >> such a pertinent question because this is where alarm bells are starting to ring, are we just watching the appetite for discounts for the entire season. offering 22% off everything like we are seeing at some stores even the smartest stores like nichols which has high-end goods is having 25%. will youart doing that cannibalize your own sales, many are saying black friday could be read friday because the discounts are so steep that you are not making a profit that you leeward everyone into. as anason i only do it in-store offer is they want you to go when and by a television and then by something else. if you're everyone else and div

someone in that transaction chain has a bank account.we will do is try to figure out who it is, who is the focal point of the smuggling network, and then we can, through application of our own tools and working with partners around the world, try to disrupt the ability to be able to transact. >> you had this great line in your speech the other day -- among the other funding mechanisms, isil profits from other criminal activities. they rob banks, they loot and sell antiquities, they steal livestock and crops from farmers, and they sell objected women and girls as sex slaves. that is a very powerful line. this is a nasty outfit. i imagine it would take some batman to shut them down. minute wehink, in the have left -- i am so interested. if you had more powers or more capacity than you do today to really lead this war, to bring wouldlaborative -- what you say would be another strategic leap for your capacity to shut something like isis down? isone thing that we work on essentially to try to replicate what we do internationally. we enforce r

and that was, a key item to be able to bring this transaction to you. >> we began to talk to tifia in 2012, about this issue. and this, it has allowed tjpa to maximize the sale prices for the former state owned parcels and block 8 that will close next october for 70 million dollar purchase price was put out to bid, originally in 2011, and received a high bid of 14 million dollars. and so, we made the decision at that time, to put off the land sales, and the era of 400 million grant was very fortuitus was allowed us to do that and kept the project going and the construction going on schedule, and it appears to have been a very wise decision and the difference between 14 million and 70 million for the same parcel with the same development opportunity. so the proceeds from the bridge financing will be used to certificate the trade packages some that have already been awarded but we will need new to proceed and we need the notices to proceed and they will need new authorizations in the early part of next year as well as the trade packages that will be coming before you in the coming month