it is a recommendation that all three of us on this panel have made to treasury and the treasury hasgnored. this failure to adopt this recommendation fails to recognize the basic tenants of good government programs. clear goals, clear expectations and clear description of performance against those benchmarks. its failure to do so has essentially resulted in the nation's taxpayers having to oulder an additional $50 billion in national debt without being told how many people expected will be helped by this program to st in their homes, how many people are going to be helped in the alphabet soup of programs and how the monies going to be spent to achieve those benefits. treasury has continued indications that this is a successful program without the-- identifying these goals and benchmarks is simply not credible and i fear the growing public suspicion this program is an outright failure will continue unless and unl treasury adopts its recommendation and comes clean with what his goals and expectations are. mr. chairman, ranking member and mbers of the committee i can't thank you enough

the treasury department delegated to the special master by secretary tim geithner, the treasury department shall look back at all 419 companies that received even $1 of tarp and in his discretion, or her discretion, shall seek to negotiate for reimbursement of compensation payments that were made during the five month window between a company receiving tarp and the recovery act being enacted. congress as it was finalizing this legislation through in a is a near -- through in any zinger that the information should be gathered and where appropriate shall seek to negotiate reimbursement. of excessive compensation and a five month window. -- in a five month window. the provision gave me no authority to demand anything. it gave me no enforcement power, bully pulpit. you guys pay it back. reimburse, bully pulpit. i went through all this other work i had to do over the last 16 months and finally here it is april and what will we do about this provision? i have no enforcement authority but we can do some good we are required. ands read all 419 companies the top 25 officials, let write a letter to

it's the treasury that has to clean up the mess when it happens so that treasury should have some role in trying to make sure the system has the protections. >> charlie: will it in any way thwart economic growth? >> this is a very important challenge for all of us in part because we're putting these challenges in place at a time when recovery is now just about a- . we're a year into positive growth after this crisis so we want to make very sure, and this is a difficult balance as we put in place these tougher rules on capital, for example, on leverage that we do so with an adequate transition period so we're not hurting lending prospects, hurting growth in the interim. that's a very different balance to strike but we'll get that balance right. >> charlie: people in the business community would say i want to know that the president and the secretary of the treasury, both who have never had real business experience understand business, understand regulation and understand what's necessary to provide corporations with the opportunity to create jobs. >> absolutely. >> charlie: and recogniz

the treasury department. >> treasury becomes the chairman of a council that is made up of the principal supervisors and regulators. the basic authority for the rules -- for the design of the rules and the enforcement is left as it should be with those independent, specialized regulators -- the f.c.c., the -- the f.t.c., the federal resee, et cetera. what treasury's job is to make sure that there are no big gaps, that the overall rules are sufficiently conservative -- they provide enough promise of stability, that they're frankly tough enough and to make sure that as the market adapts over time, the system adapts too. we don't want to fall again so far behind the curve of risk taking in the future and it's very important that the treasury secretary have this rule because ultimately it is the executive branch, it's the secretary of the treasury on behalf of the president that has to bear the cost of fixing up the mess. it's thereasury that has to clean up the mess when it happens so that treasury should have some role in trying to make sure the system has the protections. >> charlie: will

can he confirm that this was an estimate produced by treasury officials? >> the right honorable and learned lady should know -- i will give a surprisingly full answer if opposition members just sit patiently. this morning, the office for budget responsibility produced the full tables for the budget for employment in the public and the private sector. that never happened under a labour government, right? as shown in the budget, unemployment is forecast to fall every year under this government, but the tables also show public-sector employment. it is interesting that from the tables we can see the effect of labour's policy before the budget and the effect of our policy after the budget. what the figures show is that under labour's plans, next year there would be 70,000 fewer public-sector jobs, and the year after that, there would be 150,000 fewer public-sector jobs. the reason is, we have had the courage to have a two-year pay freeze. i know we have all been watching %+e football, but that was a spectacular own goal. >> i know that the right honorable gentl

treasury holdings economist says so this is two economists in the state media. former academic advisor to the central bank wrote that although assets and other currencies and forms are not ideal replacement for u.s. treasury bonds diversification should be a basic principle when demand for u.s. treasury securities a strong it's a rare opportunity for us to gradually pull back so these are the same sort of you know speaking of alan greenspan he's to send subtle signals to the market insiders about what his next move was of course nobody in the population knew how to read alan greenspan but he was sending them signals of what to do to protect themselves these are the same sort of equivalent in china these economists are telling people what the program will be very soon now shang money and another economist who works with the state told the paper also that china should invest more of its two point five trillion of foreign exchange reserves and hard assets such as gold well they're buying they're selling the dollar on rallies and they're buying gold on tips is to ch

by contrast, the proceeds from maturing treasury securities are being reinvestmented in new treasuries with similar maturities. at some point, death may want to shift investments from maturing treasury sec dwroirts shorter term issues as so as to gradually reduce the average match choifrt treasury holding toward precrisis levels while leaving the aggregate value of those holdings unchanged. at this juncture, however no decision has been made. a second way to normalize the size and composition of the federal reserve security portfolio would be to sell some holdings of agency debt and mbs. selling agency securities rather than simply letting them run off would shah ringt portfolio and return it to a composition of all treasury securities more quickly. fomc par cis pants broadly agree that sales of agency-relate second yourities should eventually be used as part of the strategy to normalize the portfolio. such sales will be implemented in accordance with a framework communicated well in advance and will be conducted at a gradual pace. because change notice size and composition of the port

>> i will certainly have those conversations with the treasury. and we will want to do everything we can to help what used to be called the third sector rher consendingly and that i believe that's the first sector and the charities and social enterprises that do so much for our country. one thing we should do is look at funding them on the same basis the government funds itself. the government is always very generous with its own bureaucracy and it needs to recognize so often these first organizations have the right answers to the social problems in our country. >> mr. speaker, will the prime minister guarantee that the firefighters and police officers whom we all rely on to intercontain dangerous and physically dangerous jobs to work their occupational pensions before reaching pension age. >> i would like very carefully at what she says. as she knows we have a review of pensions taking place being carried out by the former labour minister, the honorab -- former honorable member baron and finesse who has great expertise in this area. he'll be maki

buying treasury bills with short-term money is not -- it's not an arbitrage. it's a risky way of -- of making short-term profits at the risk of long-term capital losses. >> let me ask you this. why is it that we hear from bank after bank after bank after bank that in the regulatory aspect, we are telling -- for example, in commercial loans that are performing, performing, that, however, they need to be recapitalized. well, if we do that, we're going to dry up an enormous amount of capital, especially as we are looking at a mket problem that is going to be incredibly troublesome. >> there are a number of different bank regulators, as you know. there may be differences among the regulators in terms of how aggressive they've been in trying to maintain this appropriate balance. speaking for the federal reserve, which oversees about 10% of community banks, we have made a very strenuous effort to try and achieve that appropriate balance. it's also possible -- i mean, that banks maybe blaming examiners when, in pact, it's their own reluctance to lend which is the pro

the treasury will hold a strategy session august 17 to figure out what to do with the mortgage giants and their bloated balance sheets. so far, taxpayers have spent $145 billion stabilizing fannie and freddie. >> tom: still ahead, will apple's success rub off on its business partners? tonight's "word on the street" has three under-the-radar stocks tied to the iphone maker. >> susie: as we mentioned, b.p.'s new c.e.o. says cleaning up the gulf is at the top of his agenda, and congress wants make sure that happens. today, senate majority leader harry reid rolled out new legislation requiring the oil giant to clean up its mess and pay for damages. it's all part of a much-smaller- than-expected energy bill that leaves producers of clean energy out in the cold. darren gersh has more. >> reporter: the president called the slimmed-down energy bill working its way through the senate "a first step," and he vowed to continue pushing for a broader bill addressing climate change and renewable energy. >> we cant stand by as we let china race ahead to create the clean energy jobs and industries of

the money is not just going into treasury. stop quality corporate bonds are also benefiting from the flight to safety. but credit strategist believes high yield corporates, otherwise known as junk bopdz are a much better option. >> high yield bonds are paying on average, you know, 9-plus percent right now. fundamentals are still improving for a lot of these companies. we're seeing that come flew as we get into earnings season right now. >> reporter: an easy way to get broad exposure to the corporate bond sector is to buy an exchange traded fund. the bond index is currently yielding 9%. the investment grade version is yielding 5%. both are paying out a lot more than ten-year treasurys which yield less than 3%. one of the biggest risks to corporate bonds is the possibility the fed might start raising interest rates. even if that happens, he thinks junk bonds will hold up fairly well. >> from a price standpoint, you will not see much of a move with respect to high yield bonds. obviously with a sizable coupon that they have on the

treasury refuses to set clear goals. >> treasury's continued indications that this is a successful program without identifying these goals and benchmarks is simply not credible, and i fear that the growing public suspicion that this program is an outright failure will continue unless and until treasury adopts this recommendation and comes clean with what its goals and expectations are. >> sreenivasan: the government has provided up to $50 billion for mortgage modification efforts. but barofsky said lenders get too much leeway to decide whether to reduce a homeowner's principal balance. british scientists have found the heaviest star ever spotted in the universe. the star-- labeled "r-136--a-1" was once 300 times the mass of our sun-- and remains 10 million times as bright. the report today placed the star in the tarantula nebula at the center of a cluster of stars. it's roughly 165,000 light years from the milky way. those are some of the day's major stories. now, back to judy. >> woodruff: next tonight: the economic crisis in greece. air traffic controllers began a work slowdown there tod

john graves from the treasury is here. we work closely with the treasury and that's something we can take up closely with them earlier you advocated for collecting data on the supply side on loan size. we are proxying small business lending using firm size rather than loan size the research i've read and done, it seems like these are not great proxies for what small business is. why are you not advocating by firm size rather than loan size. we would love it but we are trying to be realistic it is very easy i think i have time for two more >> i really enjoyed your rye marks. we are a cdfi. i want to focus on the point you made on areas of under served communities there's a real opportunity to help move the product into communities. taking off on what ron phillips said, there are other tools out there that could be benefits think thoughts on that? >> stay tuned. we are working very hard we have some activities in process. as i said, stay tuned. jo last question. and i think i had promised one over here. >> i'm from los angel

and you can see more of jake's interview with the treasury secretary geithner on "this week." >>> "on the money" tonight, wall street finished the day up more than 100 points after news nearly all of europe's largest banks passed stress tests to see if they could withstand another economic downturn. >>> and ford motor company continues its hot streak. the automaker today announcing a second quarter profit of $2.6 billion, and ford says so far, this year, sales are up 28%. the company expects to have more cash on hand than debt by the end of next year. >>> now, to the new ethics charges facing one of the longest serving members of congress. today, new york democrat charlie rangel said he will fight the charges and he'll do so publicly, on camera, during a house ethics committee trial set for later this summer. jon karl has more from washington. >> reporter: charlie rangel is defiant, angry about the charges and vowing to clear his name. >> you looking forward to this battle? >> no, hell no. nobody in his right mind would be looking forward to something like this. i want to make certain

a report says the treasury department failed to consider the job losses from general motors and chryslerwning the dealerships. however, the treasury says its actions avoided a potentially catastrophic collapse. >>> and ford is looking to revive suv sales with a new fuel-efficient explorer. t"the wall street journal" is revealing that unvill unveil a vehicle later this month. it made the vehicle significantly lighter and a smaller engine. gas prices are soared a few years ago. >>> at the movies a dream opening weekend for the latest leonardo dicaprio movie. "inception." the movie is about a dream that sneaks into people's dreams. "despicable me" opened second. >> when we come back on this monday, the latest on zsa zsa gabor, she's having major surgery to >>> and the golf season's major championship goes to a south african on a very significant day fo e'll be >>> a state of emergency has been declared in eastern kentucky after flash flooding killed at least two people over the weekend. >> one woman died when she was swept away by high waters. the other victim was leaning off a bridge and t

treasury was particularly helpful. the deputy secretary of the treasury, at my request, i would go and see him, and neil was just -- and the secretary, very, very helpful in this whole project. >> and is the $20 billion escrow fund, is that safe from claims from other bp creditors, and in the case of that -- what you do with that $20 billion, while you're waiting to pay the claims, is it sitting there or waiting to be invested in anything or not yet actually in an escrow? >> is this the carlyle group king this question. >> i'm sure we could get a good return for it. >> it's not on my watch. it's interesting. the he is crow fund, the $20 billion, i'm just drawing on it. i don't know as we sit here today, i think the administration and bp have still not finalized the escrow, so i can't really give you answers to those questions, because that's beyond my jurisdiction. i'm going to draw on those moneys, but i'm not a custodian of those funds, i don't really have much of a say right now. in the terms and conditions of the f

any treasury official going on strike. he was all that i think if you follow the greece situation periodically. the day had a number of announcements that had no affect at all because they lack credibility. it wasn't until they actually started to draw blood and stood up to the strikes and things that they were having in athens that you had in the announcement effect but it took quite a while. so i absolutely agree with everything maya said with the addition of importance of crittenden. >> one thing on the credibility you want to ' most of this to deal with what is going on in the economy but can't ' all of it. you actually have to take some tangible steps immediately an again that is why you want to look at the ones the wouldn't hurt the economy by you need in a down payment on the plan to show that when you say you're ing to cut spending and what shall we are going to cut spending. it can't be promises of the future that is the piece of the credibility i think. >> so you talk about sweden and health care and i assume all

>> very instructive, the whitehouse and treasury. we work very well together but i would say that began with me working with secretary paulson in 2008 that we shared ideologies in general. but from the standpoint of this bill, our cooperation with the lighthouse and the treasury department and other agencies, the fdic and shapiro of the sec has been very constructive and i am very pleased with the relationship we had. the other thing i learned, i thought i knew it but i've been able to tell others. public opinion is powerful. we got a better bill this year than i had out of the committee last year because last year frankie was spepgd all the time -- spending all the time in healthcare and there was no focus on this bill from the general public. the big interests won more of the fights than i wanted them to. this year with healthcare having been done, all of this happened in the public arena and we got a stronger bill at every point, a stronger bill in the senate, so it does reinforce my view if we can get public opinion focused, it w

because the treasury already has staff -- is sort of an odd set up. the fed has no discretion or ability to overrule any of its decisions. the fed chairman cannot tell the director of this agency that does not like the role and the director cannot do it. host: it is part of the federal reserve. will be located there? guest: they're looking at office space. the fed has a pretty full building. host: what are you hearing about turf wars over the new agency, and who is in charge, or who has the authority, or money? the money for this new agency is supposed to come from the federal reserve's overall budget. guest: the funding issue played out on the hill and was pretty hot. the way democrats decided to protect the sentencing was through giving from reserve money and not having to have money abraded from congress. the feds are pretty confident that would be hard to tamper with their funding stream. the director issue is expected to be a big battle in coming months. there was a philosophical debate about how much power it should have, and how activist or pro

treasury secretary timothy geithner weighs in. the bay area at 5:00 starts right now. >>> good evening. i'm diane dwyer. we begin with the deadly fire in san jose. 50 firefighters responded to the scene but they were not able to save an 8-year-old girl. several other people were hurt in the fire as well. the -- it first started around 1:45 this morning at an apartment building near hamilton and meridian. george kiriyama is live with the very latest for us. george? >> reporter: diane, just a sad story all around. this 8-year-old girl was visiting from north carolina. she was here visiting family here at the apartments in san jose. the fire happened in one of the back units. a maintenance worker just finished boarding up the burnt apartment. they found 8-year-old in a back bedroom of this apartment unit and pulled her out. she died an hour later at valley medical center. there were five other children and a couple of adults inside the apartment when the fire broke out. most of them were able to get out on their own. ten other people

. >>> the united states will send a senior state and treasury department officials to japan and southorea next week to discuss sanctions on iran and north korea. u.s. assistant secretary of state philip crowley told reporters about the upcoming visit on thursday. the state department is sending robert einhorn, its special adviser for non-proliferation and arms control. the treasury department is sending its deputy assistant secretary for terrorist financing and financial crimes, daniel glaser. they'll arrive in seoul on monday and tokyo on tuesday. the u.s. government imposed more sanctions against iran earlier this month. the move followed the u.n. security council's adoption of a resolution to impose further sanctions on iran due to its nuclear development. the u.n. sanctions mainly target foreign firms that have exported oil products to iran. the united states is also working on further sanctions against north korea following the march sinking of a south korean warship allegedly by the north. the sanctions are said to include freezing of assets of north korean entities and individu

but a report to be released tomorrow by the inspector general says the treasury neglected to protect the broader economy when it said they would gradually close had dealerships. the obama administration says the plan has saved 1 million jobs and paved the way for both companies to thrive. >>> tomorrow morning carpool commuters on the the -- on the golden gate bridge will need a fast track account to get the discounted $3 toll. those with cash will be charged the full $6. carpool commuters will still have to drive through an attendant lane so the toll taker can verify the amount of people. those with fast track will still be charged $5. >> it looks like it will be a murky, overcast ride on the bridge. >> that's right. we are seeing clear skies, but a little fuzzy sky over san francisco. the low clouds and fog are starting to move in. a nice shot from the sutro cam and looking down toward the avenues there. you can see just a little bit of low cloudiness starting to come into san francisco and heading toward the bay. i do want to show you the current readings because antioch today, you

to borrow from the treasury? we don't have the resources to keep financial institutions operating from a friday to monday? i don't see is that -- see that as an attractive alternative. by getting this course that we need to to accommodate the budgetary concerns seems to me the wise way to proceed on this. that does not satisfy those who are opposed to the bill. i understand -- i am not one to solve that problem by coming up with an alternative pay for that made me more acceptable to colleagues who have to vote for or against this legislation. that is the reason for it. trying to come up with an answer that makes sense to people. people still want to invest and i'll be glad to entertain those ideas but we do need to move on this as well. senator corporatker. >> i have been relatively mild mannered for this conference and i tried offer amendments for the good of the people. i have to tell you, mr. chairman, the comment you just made is one of the most disingenuous comments i've heard made during this conference. th

the fact that treasury was acting in part as an investor to g.m. and chrysler does not insulate them from the broader responsibility. treasury should have taken greater care given that it had the ability to contribute to job losses. the assistant secretary of treasury for financial stability -- wasn't that a misnomer? anyway he said the restrucking -- restructuring process was painful and required sacrifices from all parties. quote we strongly disagree with many of your statements, conclusions, and lessons learned, unquote, alison told barofsky. president obama forced the companies to have dealers sign a clause before they were closed who is going to pay them back for the property stolen from them by this administration? but i have to add, stolen legally, because congress didn't stop them, the supreme court didn't stop them, so accordingly, it must have been legal. they weren't stopped by people that could have. going back to the article, chrysler said that same month it was offering new franchises to 50 dealers who aplide for arbitration, in addit

veryr headliner this morning, treasury secretary tim geithner. on the massive new wall street on the new lettingon bill. letting tax cuts expire. and pros sects for another and similar lus bill. age.then -- >> direct, honest, refreshing. >> he's a rising star. his and his tough talking, first-cutting style is winning him fans nationwide. in his first sunday interview, new jersey governor chris christie. >>> and our "roundtable," with sam donaldson, cokie roberts, stephen hayes and donna brazile. we'll look at the firing of shirley sherrod and less soones to be learned about the media, nt.e, and the obama administration's latest aschable moment. >>> and, as always, "the sunday funnies." a there's a report that kate ssselin and sarah palin are taking their families camping together in alaska. and it must be true because sarah palin hasn't refudiated it yet. >> good morning. this week brought more mixed signals about the economy. as fed chair ben bernanke put with the current economic climate is unusually uncertain. capitol spending fatigue on capit

borrowing costs in the world mostly because of china's large cash surplus which they used to buy treasuries so china is having to pay a huge amount of money for their own debt relative to the u.s. but the u.s. debt would be unsustainable if it were not for china recycling their own savings and america wants to label china as a currency manipulator when in fact the real problem is that america is a ratings manipulator well you could view china as a currency manipulator in that they keep they sustain the u.s. dollar beyond its natural law if that's true. so along the same lines next headline reads gold keeps rising as panicky investors look for security according to the article investors have piled into gold on fears that capitalism is about to crumble into a capitalism is about to crumble because the whole idea of supply and demand has been destroyed you no longer get price signals on the exchange which is indicative of supply and demand the prices are manufactured by high frequency trading and algorithmic trading which distorts the entire system and it's the death neal for capitalism and go

you can see jake's full interview with the treasury secretary and, of course, the weekly roundtable tomorrow morning on "this week." >>> still ahead on "world news" this saturday, protests and arrests. a school busing program is canceled. is this another step in the resegregation of america's schools? >>> general stanley mcchrystal says good-bye. we hear from the former commander of the war in afghanistan for the first time since his stunning fall from grace. >>> and the incredible reach of social media. facebook helping us make sense of the mundane and the momentous. (announcer) chug that coffee, bolt that burrito. no matter what life throws at you, you can take the heat. until it turns into... heartburn. good thing you've got what it takes to beat that heat, too. zantac. it's strong, just one pill can knock out the burn. it's fast, the speed you need for heartburn relief. and it lasts, up to 12 hours. so let them turn up the heat. you can stop that heartburn cold: (sssssssss!!!) zantac. dr. scholl's back pain relief orthotics with shockguard echnology give you immediate relief # that lasts