the treasury estimate is about $50 billion. omb has a significantly higher estimate but that is dated back to last year. i anticipate that number will come down. >> the nonpartisan congressional budget office on which this institution has historically relied until recently when we don't like their numbers says $25 billion? >> yes, the reason for the big difference between that and treasury is that the cbo looked at the hamp program and does not believe that treasury will spend a fraction of the amount allocated. >> are there still warrants and stock to be sold that could get improve that net estimate to? >> i am assuming that when cbo does its estimate, they would consider those factors. >> everything is about timing when you sell the warrants and stocks? >> of course, the markets could improve or get worse. >> you mentioned to the hamp program. this committee had a hearing last year and at that time, my friends and the other side of the aisle criticize the program which they opposed. nonetheless, they criticized it because onl

treasury department. explain this better to the american people, being more upfront and honest about the problem, saying that the first nine institutions were by a bill -- by evelyn help they when we knew well that they were not. -- were a viable and help the when we knew well that they were not. it is not to live in now with courage treasury to renew its efforts toward transparency. -- it is not too late and we encourage treasury to renew its efforts for transparency. you can be a more informed conversation, be a more informed debate. right now treasury posture running of this program is like picking winners and losers, back room deals. those criticisms, we would come out of these transparency to failures. >> if i could respond to that, i am fully committed to transparency and the particular suggestions that sigtarp has made in this regard. we have implemented them. i like to note, because often people are not aware of it, we published annual financial statements which are audited and we received clean o

treasury securities. the more we have to borrow, the more important it is to borrow at reasonable interest rates. >> , the president last night proposed a five-year spending freeze. the republicans' proposed scaling back spending to 2008 levels. in the greater scheme of things, even if these proposals were enacted, what impact would they have on this larger debt problem that you were describing? >> i am not sure what the proposals or that are on the table. non-defense spending is a well- defined budget category. you'll find it in our report. haleh security spending is not well defined. the money goes to a number of pre-existing budget functions or budget categories. you'll not find that specified in our table. many people can mean different things by it. if you look at -- we did an exercise of freezing and non- defense discretionary spending. apart from that, it goes to the homeland security appropriations committee. if one friezes that for five years and then for us to grow again at the race we use in th

i don't think treasury is.tober 13th, 2010, the attorney general of all 50 states announced the joint investigation to whether some of the nation's largest financial institutions are using flawed and forged documents to execute wrongful foreclosures. the federal reserve and the fdic and the office of the comptroller of the currency are now investigating whether systemic weaknesses in the industry are leading to improper foreclosures. on january 7th, 2011, the supreme judicial court in my own state of massachusetts voted home citizens, because the folks who were foreclosing couldn't actually prove they owned the mortgages. the united states trustee program has a similar program. the attorneys generals of arizona and nevada doing the same thing. the justice department. what are we doing about the services, how are we going to clean up this city and correct these problems if we're not going right after the services? that seems to be where the problem lies. >> i'm happy to respond to that, congressman. >> please. >

treasury securities. the more we have to borrow, the more important it is to borrow at reasonable interest rates. >> , the president last night proposed a five-year spending freeze. the republicans' proposed scaling back spending to 2008 levels. in the greater scheme of things, even if these proposals were enacted, what impact would they have on this larger debt problem that you were describing? >> i am not sure what the proposals or that are on the table. non-defense spending is a well- defined budget category. you'll find it in our report. haleh security spending is not well defined. the money goes to a number of pre-existing budget functions or budget categories. specified find that in our table. many people can mean different things by it. if you look at -- we did an exercise of freezing and non- defense discretionary spending. apart from that, it goes to the homeland security appropriations committee. if one friezes that for five years and then for us to grow again at the race we use in the baseline,

i n't think treasury is. on october 13th, 2010, the attorney general of all 50 states announced the joint investigation t whether some of the nation's largest financial institutions are using flawed and forged documents to execute wrongful foreclosures. the federal reserve and the fdic and the office of the comptroller of the currency are now investigating whether systemic weaknesses in the industry are leading to improper foreclosures. on january 7th, 2011, the supreme judicial court in my own state of massachusetts voted home citizens, because the folks who were foreclosing couldn't actually prove they owned the mortgages. the united states trustee program has a similar program. the attorneys generals of arizona and nevada doing the same thing. the justice department. what are we doing about the services, how are we going to clean up this city and correct these problems if we're not going right after the services? that seems to be where the problem lies. >> i'm happy to respond to that, congressman. >> plea

you can actually hit the debt ceiling and not be able to go and issue new debt but then the treasury department has money on the books of the federal reserve so it can actually tap down an account that it has at the fed and use some of that money. there is a retirement fund with $90 billion. you can pull that out. the exchange fund, $20 billion in that. something called the federal financing bank with $15 billion. so you can start drawing from all of these accounts just to keep the government operating and avoid that meltdown moment. everyone in financial markets knows that even when you get past that normal point where you think the debt ceiling is going to be hit you have some bit of latitude, probably a matter of weeks and even during that period there are other things you can do to deal with the problem and at some point the debt ceiling has to be raised in the next five or six months and if that is the moment that leads to some kind of negotiation, whether the $100 billion in cuts that republicans, incoming republicans have been asking for, or something more long term, then that

[laughter] >> he was in the treasury. what did he do? what did he do when they set up the regulatory system that failed? he did nothing. what did he do when they paid out $11 billion to bankers, he did nothing. what did he say when he abolished boom and bust. he did nothing. he is the nothing man when he's at the treasury man and the nothing man now and he's trying to run the treasury. >> they ha been involved in the last year's -- helping over 2,000 people. would the prime minister agree to meet with the delegation to hear about the importance of their local knowledge? and skills. and also to hear how we can avoid a fiasco similar to what we saw with the regionalization of fire services? >> i look very carefully at the time of this announcemt of exactly what's being proposed in terms of the coast guard and there are proposals to try to and put more on the front line by sharing back-office services in the way we coordinate t coast guard. i know there are very strong local feelings. i will arrange for her to meet with the transparent secr

he staged a protest in front of the treasury building and since were young turks fans around here and because our office is only two blocks away from the treasury building in the white house we decided to step out of the studio to catch the action now today janko eager of the young turks held a protest in front of the treasury building to tell tim geithner that the american people want their money back and they want to back from goldman sachs twelve point nine billion dollars worth and they think that it's tim geithner's job to get it for them now despite the rain the spirits were high and the chants were creative to say the least you know. oh you know you don't. understand anything. at the. end of the now after the protests i caught up with jang to get a clearer picture of what this really was all about for him jane that we just finished up here protesting in front of the treasury department it's raining it's cold outside but are you still happy with the people that came out with the support they were amazing of course the weather turned out etc but i love the people who came out of

the treasury is still writing the checks. the companies are now falling through. >> back on dodd-frank and the regulatory reform legislation that passed last year, some on the left would argue that what republicans are trying to do is make it easier on banks and give the financial industry more of what it once and a softer touch out of regulators. how do you rebut that criticism? >> if you look at what the banks wanted, they wanted the tarp and the banks wanted the bailout. i a voted against that. this idea that republicans are in favor of the banks and democrats are in favor of the little guys isn't the truth. the reality of the situation for me is, i am not as concerned about the regulators or the institutions. i am concerned about my constituents and their access to credit. as you talk to a small real- estate developer who has little debt and what that he has he is paying on time. -- and what debt he has he is paid on time. the banks are coming in and saying they have to change his loan terms. large businesses are trying t

now of course you have this issue between the treasury issuance of treasury notes in order to finance the deficit and the federal reserve that is pretty money in order to fill up that hole so ultimately you know you don't see an end to this policy the only way it's going to end is in tears and now you do see some relative strength in the u.s. dollar and people are saying well you know the rise and interest rates the ten year yield is indicative of a strengthening u.s. economy is that the right conclusion my conclusion is that both the equities market which everybody knows in wall and and now the bond market are just fictions that's my own sense the only thing i'm paying attention to is commodities and commodities are just continually rising and so it seems increasingly clear that between the manipulation of the equities market the clear manipulation of the treasury bond market by the federal reserve i mean they are putting that much so much money into the market but it is never will that they can manipulate it at will i don't really a lot of people talk about the bond market with her

specifically the treasury department and the fdic from each of the federal reserve banks, the national credit union administration and the security exchange commission among others. each of these agencies and departments must and can office of minority and women inclusion that will implement the law which states that minorities and women and entities of owned by them must participate to the maximum extent possible in the business of the agency and those contracting in the sale of assets. investment banking firms, asset management firms, consultants, lawyers and many other types of professional service providers are specifically cited. what impact could this have on the minority community if properly implemented and in first? first we believe section 342 could be a vehicle for wealth creation for minority and women entrepreneurs and investment banking asset management and commercial banking. the federal government is selling assets for the treasury department paid the fdic and eventually will sell assets house that the federal reserve bank of new york such as the meeting lane fund. what

tim geithner, the secretary of the treasury in davos, switzerland. when we come back to our studios on mondaybill gates talks about global health and how he sees the progress as he releases his annual letter from the gates foundation. >> it's a real mind shift. you've been making money, giving away is a bit different. and you're not sure if you're going to find your way in it, and you're going to find something. so it requires taking a little bit of a leap. and you don't know how fulfilling that's going to be. you know, you need to pick your scope because otherwise you're going to get more requests than you'll know how to deal with. you need to think think about the structure anhow you involve people. but it is fulfilling. and these are very talented people. society is better off if they choose to take some of their insights, you know, some of the great people they know who also want to work in a philanthropic way and draw them in. in they're collaborating with others. even though there's no agenda in the giving pledge, we do expect that people meet

and by the way, the right honorable gentleman was at the treasury all the way through this. he was there when they knighted fred goodwin. yes, wait for it, they knighted him for services to banking and sent him away with a 70 million pound payoff. that is why no one will ever trust labour on baking or on the economy again. >> planet redwood and planet cameron. there we have it. one will for the banks, another for everybody else. -- one rule for the banks. his health minister said, "i do not want you to trust david cameron. he has values that i do not share." the health minister knows that he is out of touch. the house knows that he is out of touch. and now, because of his failure on the banks, the whole country knows that he is out of touch. >> i think the right honorable gentleman knows that this is just not working. we have ended up with a shadow chancellor who cannot count, and a labour leader who does not count. what did he do? he did nothing. what did he do when they paid out 11 billion pounds in bonuses to bankers? he did nothing. what did he do when they said they hav

i see the shadow chancellor nodding, but he was in the treasury when all that happened.

treasury bonds as the value of those bonds is dropping, the yields are rising, corporations are going to be crowded out from being able to borrow. and individuals will be crowded out from being able to borrow because investors will focus on safer government debt than they will on corporatdebt. that creates all sorts of problems for the econo if borrowing costs, n just the cost of capital but also the availability of capital for business that will severely slow down the economy. then obviously the foreign indebtedness with $4 trillion out of the $14 trillion held by foreign investments and governments. you have a number of issues with trade flows and the balance of power right now that you're seeing in this debate over the yuan and doing something about trade with china. the final point here i want to bring up from the fed chairman and what his warning to congress was, doing nothing will not be an option infinitely. one thing he points out here, the prompt adoption of a credible program to reduce future deficits would not only enhance economic growth and stability in the long run but c

if we do not, we are also losing money to the treasury. so it is also a practical matter. as president obama said, some of these cuts will result in making matters worse. i am not familiar -- i just at home last night -- with the particulars of what the governor is going to do. i know he is committed to the future. education is essential to innovation, as the president said, and most importantly, essential to young people reaching their aspirations. thank you for being here and bringing your thoughtful challenges to those of us in government. i hope to see you in washington, d.c. some time. you will see the history of our country there, which we respect, but we talk about the future, and that is who wyou are. thank you, michael and ashante. >> will you come back when all of this is finished? when we have the ribbon-cutting. you will be taller. hopefully, the rest of us will not be shorter. let's thank our construction workers who are not only building this wonderful building, but they are growing in this community. thank you. [applause] i just had to tell you about one oth

treasury department. and yet this system of leak torle subsidies has not changed the public's perception of our presidential elections or our politics. according to one survey after another, americans continue to harbor deep distrust of elect officials. does anyone think our presidential elections have shown a virtual progression towards more accuracy and more honesty? mr. chairman, how many candidates, candidates who supposedly believe in the system, have opted out of this taxpayer financing scheme in recent years? in 2004 and 2008 several candidates declined public financing for their primary campaigns. anas was mentioned by the gentleman from illinois, during the most recent presidential election for the first time the nonee of one of o two major political parties withdrew from the public financing during the general election and instead went on to raise record amounts of money for his campaign and i recall when i thought we heard a pledge to participate in this program, because of the virtuous nature

treasury department.and yet this system of leak torle subsidies has not changed the public's perception of our presidential elections or our politics. according to one survey after another, americans continue to harbor deep distrust of elect officials. does anyone think our presidential elections have shown a virtual progression towards more accuracy and more honesty? mr. chairman, how many candidates, candidates who supposedly believe in the system, have opted out of this taayer financing scheme in recent ars? in 2004 and 2008 several candidates declined public financing for their primary campaigns. and as was mentioned by the gentleman from illinois, during the most recent presidential election for the first time the nominee of one of our two major political parties withdrew from the public financing during the general election and instead went on to rse record amounts of money for his campaign and i recall when i thought we hea a pledge to participate in this program, because of the virtuous nature of

joined forces to explore the potential energy treasury of the arctic sea bed the companies have a long standing business ties and stocks was worth billions of dollars. as government workers enjoy lavish mansions and gourmet restaurants in washington d.c. it's the point that say that's bearing the brunt of the recession at the peak of the crisis of federal workers received a pay rise of double the national average. schoolchildren in india and around the kashmir are swamping the traditional winter break in defiance of separatist violence that playing catch up after canopies forced the schools to close in the summer. was the production deal paul says its second of three readings in the russian parliament we discussed its future with the head of the state demas foreign affairs committee. that's next here on on spotlight.

treasury is much more powerful in the uk than the u.s. treasury is. i should have known this going in, but what was surprising to me is how the u.s. treasury does not have control over monetary policy in the u.s.. it does not really control budget policy. the president will produce any budget he wants to produce and even if he has control over congress, the budget he produces in january is kindly received and then completely ignored. the situation here is completely different. even in a coalition government, the treasury is pretty much all powerful. a have american friends who have been astonished to watch this when they come here. the chancellor stands up on a certain day in parliament and announce what they are going to do. they sit down, and in a week or so, it will have happened. there is none of the debate, none of the months of painful back and forth that you have in congress. the treasury is just much more powerful. when it comes to the rest of the world, no one really cares anymore what the u.k. treasury thinks, but in the case of the u.s., we

receipts, net receipts to the treasury are highly unpredictable.if you have a refund, you want to file early. if you owe taxes, you want to file late. one of the biggest concerns is that we could strike the debt limit significantly before april 15th, and we could be in a situation where the federal government is significantly short of cash. i'll just add for purposes of discussion right now that some people say playing with the debt limit is playing with dynamite. i can tell you that is not true. it's not playing with dynamite, but playing with plutonium. this is one of the most dangerous situations in federal government finance that could be imagined. all we need right now in a time when the federal government's debt is seemingly out of control would be a spark of concern in the financial markets that the federal government could begin to default, and the consequences for every american citizen would be enormous, and that's part of the story i tried to tell in that little document that you've received, and i hope that you take a look at that and m

they got and the medicare cuts is borrowed by treasury and treasury oppose that money back when medicare continues to go into default and claims of money back? >> senator sessions is referring to a set of letters we cents in his request in january of 2009 and 2010. it is done on a unified basis, taking into account all spending and revenue. the net of fact with deficit spending as a whole. the cutbacks in medicare spending, to get with revenue increases more than offset the extra spending on the new health entitlement and expanded health entitlement. it is also the case that the savings in medicare, particularly the savings in the hospital insurance part of medicare then lead to a greater accumulation of bonds in a trust fund. those bonds have important legal meetings. there are real u.s. debt backed by the full faith and credit of the united states government, like the debt sold to the public. they do not have independent economic meaning in the sense that the trust fund has an accumulation of bonds. that does not give the trust fund a separate way to pay medicare benefits, except by co

you could say the same thing about henry paulson, the treasury secretary. although his reputation is not as high as bernanke's, during the crisis he reacted decisively to help stabilize the economy and financial markets. i think when president obama came in, they continued to broaden these policies. so i think the credit for stabilizing the economy belongs not just to one person but to run a ray of people in both parties, but they all made -- but to an array of people in both parties, but they all made mistakes and nobody was perfect. under other circumstances, things might have got much worse. >> who do you think has been wrong? >> everybody has been wrong. did somebody create a single sin that led to everything else? i do not think so. >> if you listen to the talk shows -- >> i do not. >> if you listen to the top shows, they point their fingers to the other side. if you listen to who is right and wrong, conservatives say president obama is a socialist and all that. if you listen to the left, they will say it is george bush's fault and all that. fault and

there are pines following into the treasury from hard-pressed motorists right across from united can kingdom. each week since he said a stablizer was a sensible balanced policy that protects families from big increases in the oil price. he has talked stabilizer. he's promised it. he's answered questions on it. when is he going to introduce it? >> well, i don't believe in making tax changes outside a budget. i think that is the proper way we do things in this country. i do think that there is a very strong case for looking at this area because i want to see a situation when oil prices rise e try to help the oil burden. the quite right honorable gentlemen said what he said in his manifesto he stood on we must rein back on public spending and the key priority of the public government must be in reducing government. i agree with that. >> esther mcveigh. >> thank you, mr. speaker. i'm delighted that the government's new enterprise allowance will be begin in my home office on monday. the prime minister, is it not initiatives like this that will spark enterprise and stop businesses in some

amazing to me that that people have actually put more money in treasuries at such record low interestates that they're getting and they're not necessarily putting that money in dividend payers, which obviously we are talking about much more competitive rates, right? if you're investing for income, is this the right place to be as opposed to bonds? >> well, i think it's really important for people to understand that the, you know, piling in that everybody has done into bonds, especially the treasury, because there has been tremendous fear about failure, because of what we have just been through with the second worst financial crisis in history, that was good for a while. it's -- any time that there is a crowded trade or a bubble in pricing that tends to unwind badly, for the first time in the last 50 years, the ten-year treasury is yielding less than the dow jones industrial average. whenever we see as an investment manager something that is really overpriced compared to something that is reasonably priced, we're going to buy the reasonably priced or the cheap thing, because to win at

treasury bonds. the fact that that is true makes it easier for the government to spend beyond its means. it makes it easier for the government to spend more than it is willing to tax. politically, that is quite advantageous. generations of politicians going back to the 1960's has -- have been willing to do this because they spend more than the tax people. before the 1960's, there was a custom in this country that in the good times, you balance the budget. in the 1960's, we broke that rule. once it was broken, it has been impossible to restore. not that he balanced the budget every year -- not that he balanced the budget every year, but the government's made an effort to tax as much as it would spend. >> how many years have you lived here? >> since 1969. >> the republicans have said their order to cut. will it make a difference? >> i will believe it when i see it. if they do not go after spending for all americans, social security, medicare and medicaid, it is essentially a fraud because you cannot br

since the announcement of the decision to purchase long-term treasury longer-term rates have increased. it might seem the recent increase in rates contradict the view that asset purchases put downward pressure on rates. the logic behind this view works in both directions. if the market expects the fed to respond to weak economic conditions by buying more assets investors bid up the assets and rates fall. conversely if the market expects the economy to strength and investors ratchet back expectations for fed purchases, reduce access and rates rise. the current rise in rates is exactly due to this latter circumstance. the outlook for the economy in a corresponding decrease in market expectation for future accommodation. one of concern that has been raised about asset purchases is resulting expansion of the fed balance sheet and corresponding increase in reserves. some observers have noted that an increase in reserve balances could lead to an increase in money supply which would in turn generate inflation pressure. others worry the elevated levels of reserve balance might make it difficul

whatever proceeds come from the book will go back to the treasury.he commission will put out the final report today at 10:00 a.m. in washington to we will be covering it. if you want to find out when it will air, go to our website, c- span.org. here's a list of all the people who serve on this commission. chicago, steve on the line for democrats. caller: i'm curious if anything was mentioned about these bond rating companies that rated these at a-ratings when they were junk bonds. guest: the report describes them wheel. in the the people of the rating industries often had not enough information and not even the right software to do their job. everything short of outright corruption is what went wrong with these credit rating companies. they did not properly assess the risk that they were supposed to evaluate. i think they come across looking very culpable in this report. host: how have they changed? guest: it is a complex question. the dodd-frank law with the securities and exchange commission in charge of these raging -- of these rating industries.

treasury is much more powerful in the u.k. than the u.s. treasury is. i was sort of amazed -- i should have known this going in -- but when i went to the u.s. treasury, i was surprised that it is imminent. -- impotent. it does not have much control over the monetary policy because that is the fed's job. and it does not control budgetary policy. the president will set the budget. the budget he produces in january is currently receive and then ignored. -- kindly received and then largely ignored. the situation here is completely different. here, if is much more powerful. the finance minister stands up on a certain day -- you saw the report i did in the spring -- they stand up in parliament and announce what they will do. they sit down and, in a week or so, it will have happened. there is none of the debate or back-and-forth that to having congress. that is the key difference. congress is much more powerful. -- the treasury as much more powerful. but in the rest of the world, nobody really cares what the u.k. treasury thinks. in the case of the u.s., we ha

every week, 600 million pounds in fuel duty flows into the treasury from hard-pressed motorists right across the united kingdom. that is 600 million pounds each week since the prime minister said that a fuel duty stabilizer was "a sensible, balanced policy that protects families from big increases in the oil price." he has talked about a fuel duty stabilizer. he has promised it. he has answered questions on it -- so when is he going to introduce it? >> i do not believe in making tax changes outside a budget, which is the proper way we do things in this country. i do think that there is a strong case for looking at this area, because i want to see a situation where, when oil prices rise, we try to help motorists and share the burden with them. the honorable gentleman quite rightly reminded me of something i said, so perhaps i can remind him of something he said, as he stood on a manifesto that emphasized the need to "reign back public spending" and stated, "a key priority of the next government must be reducing debt." i agree with that. >> i am delighted that the government's new enter

jones due to be well actually say one of the arrested parties in iceland is the former landsbanki treasury boss john thorstein lifeson. yes ok so that iceland special prosecutor into the banking crisis has confirmed the raise have taken place and arrests have been made the central bank of iceland is among the institutions under investigation in particular these arrests in the past week and involve a three hundred million dollar loan made by a lender spankie on october sixth two thousand and eight the day emergency law was enacted in iceland and the day before the bank lending spankie was taken over by the financial services authority yeah that's right a lot of banks were the first to enter the global collapse due to the fraud perpetrated by the bankers and they had to shut them down to shut those banks down something that irish government has not done or the greece government has not done the greek government has not done which they should do because iceland is taking the right action they've shut down the banks and now they're looking for those bankers and they're going to string them up