who told treasury? do you know who in treasury told the white house? cationsve no communi with the white house. >> you are unaware of them? >> we are part of the executive branch. we have regular medications with treasury. we issue and review regulations. we are reviewing the regulations on the 501(c) four issue. >> if the irs knew in february or march and treasury and white house knew at least in april, but congress and the american people did not find out until june, were you purposely not telling us, not revealing this to us? >> my proposal was our original thought was to complete the lois lerner production, the pig the review of what other custodians had a problem, and produce you a report laying it all out. not -- thethe iris irs not inform the congress? >> we were not keeping it a secret. it was a report that was providing you the information. there's been no attempt to keep it a secret. my position has been that when we provide information is provided completely. if we provide an incomplete iteration, people are sometimes tempted to leap to thei

who told of the treasury department? >> part in? >> who told of the treasury? the letter i received said treasury told them at april 2014. so my question is who told the treasury department? >> my understanding only from that letter which i've seen which does not say e-mail said the laws. my understanding of the letter says someone in the general counsel's office at the irs inform the general counsel's office at treasury that was an issue and the irs was investigating. >> no. the letter reads as treasure was told that treasury told the white house. we have a letter from treasury said they learned in april 2014. who told treasury? do know who in treasury told the white house of? >> i have no communication with the white house. >> you are the end of the irs. you don't know something this important, the content? you are unaware speak with we are part of the executive branch. we have regular fumigation with treasury. we issue regulations. we review them. were in the process of reviewing the regulations on the 501(c) issue. we have regular to mutation, particularly

let's keep it on treasuries.g easier for a small group in the treasury market is to create angst for all of those bears out there. , despites following unprecedented growth. with us now, we have lisa a vich.a -- abromo welcome to the show. i have heard just about every justification under the sun for this treasuries situation. >> it is everything from auto loans to mortgages. this is a very important market. yet trading volumes are following. first of all, who are the sellers? you have central banks better wording treasuries right now, it hoarding treasuries right now, including our federal reserve. they are not looking to sell anytime soon. that is a detractor from volume. you also have big banks pulling back their inventory, pulling pullingis taking, -- back risk-taking, seeing smaller profits. shrinking stats, less effective trade. it is not making it worth it for them to trade the securities. >> so, the big question -- how do i trade this? this is easy. >> [laughter] the reason it is important, going forward,

who told of the treasury department? >> part in? >> who told of the treasury? the letter i received said treasury told them at april 2014. so my question is who told the treasury department? >> my understanding only from that letter which i've seen which does not say e-mail said the laws. my understanding of the letter says someone in the general counsel's office at the irs inform the general counsel's office at treasury that was an issue and the irs was investigating. >> no. the letter reads as treasure was told that treasury told the white house. we have a letter from treasury said they learned in april 2014. who told treasury? do know who in treasury told the white house of? >> i have no communication with the white house. >> you are the end of the irs. you don't know something this important, the content? you are unaware speak with we are part of the executive branch. we have regular fumigation with treasury. we issue regulations. we review them. were in the process of reviewing the regulations on the 501(c) issue. we have regular to mutation, particularly

who told the treasury department? who told the treasury department of the letter that i received from the white house says the treasury told them in april of 2014. , my question is who told the treasury department? >> my understanding only from that letter i have seen which does not say that the e-mails have been lost by understanding of the letter says that someone in the general counsel of the office informed the general counsel office that the treasury there was an issue and the irs was investigating. >> for the treasury was told to the treasury told the white house and we also have a letter from the treasury that says they learned in april of 2014. who told the treasury committee or you know who told the white house? >> i have no idea or no communications. >> you are the head of the irs and you don't know something this important between your agency and executive branch? >> we are part of the executive branch and we have regular communications with treasury. we issue regulations and review them and are in the proc

and this was a whole -- this was a new frontier, and it made treasury a real player. and as i said earlier, my risk, my concern now is, it's become so good and they become so effective, people think it's a silver bullet, rather than just one element of a comprehensive strategy. >> i agree with that. a couple things on the office. first of all, it really is a truly non-partisan set of tools that have been used, a bipartisan set of tools. i think that's been indicated. and one of the first personnel calls that i made during the transition in 2008 was to track down stewart levy at an event with his kids, right? >> and talk him in to stay -- >> get him to stay in the obama administration and he did. and i think to steve's point, it resulted in continuity in building on the tools and insights that had been developed in the bush administration that we built on and enhanced, i think, going forward, so, it really is a bipartisan effort. treasury is at the table and has been at the table addressing some of our most important security issues, national security issues, whether i

so you're the secretary of the treasury.the irs is the biggest bureau in treasury, and you only learn about this the day before we do. but isn't it true that treasury was notified by the irs that these failures existed, and they were notified in april, and then it was treasury who notified the white house in april that the lois lerner e-mails were gone? but you only learned about this in mid june? >> yeah. the timeline as i understand it is that, you know, lawyers at irs and treasury, you know, discussed the matter, they were notified about it -- >> in april. >> in april. >> and you, and you didn't know anything about this, right? >> and the guidance that was given at that time -- >> but you didn't know anything about this, is that your testimony? >> the guidance that was given, as i understand -- >> so you didn't know about the e-mails, the news about it, the lawyers know, but mr. lew, the treasury secretary -- >> i'm happy to answer your question if you'd give me a moment. >> if you'd answer the question, i'd appreciate it

it made treasury a real player. my risk, my concern now is it's become so good, and they have become so effective, people think it's a silver bullet rather than just one element of a comprehensive strategy. >> i agree with that. a couple things on the office. first of all, it really is a truly nonpartisan set of tools that have been used, a part partisan set of tools. one of the first personnel calls i mad in the transition in 2008 was to track down stewart levy at an event with his kids, right, and to beg him to stay thd the obama administration, and lockly, he did. and i think to steve's point, it resulted in continuity and building on the tools and the insights that had been developed in the bush administration that we built on, going forth. it really is a bipartisan -- the treasury was at the table and had been at the table for addressing some of our most important national security issues, whether it be the terrorist threat or the north korea challenge or the nonproliferation challenge in iran. this point that

the honorable secretary of the department of treasury.retary testified before our committee on a number of occasions. so i trust he needs no further introduction. the secretary's written statement will be included in the record. mr. secretary u. are recognized for your presentation. thank you. >> thank you mr. chairman, ranking member -- >> you have to speak into the microphone a little more. >> can you hear me now >> yes, much better. >> ranking members of the committee, thank you for the opportunity to testify today on the financial stability oversight council of 2014 annual report. nearly four years ago, president obama signed into law the dodd frank reform in the consumer protection act creating the strongest safeguards for investors is the aftermath of the great depression. as everyone here recognizes a stable trading financial sector is critical to our economic growth and prosperity and that's why in these historic safeguards were established. today our financial system is more resilient, confident in the market and is robust and th

tell treasury what we're doing. >> i'm not talking treasury, i'm talk tag irs. someone from irs told the white house. >> point of order. >> state your point of order. >> the point of order is the -- >> state your point of order. >> the point of order is the gentleman is over his time. >> the rae point of order is hi won't answer the question. >> the point of order the chairman cut me off when -- >> i'm cutting awe off again. we'll maintain decorum. the parliamentarian will allow anyone to make a point of order, to cite within the rules a point of order as to whether rules are being properly adhered to. congresswoman spear did a very good job of citing a point of order, and i would ask all folks to please use the parliamentarians before the cite a point of order. we now go to the gentleman from florida, mr. sanchez, for five minutes. >> commissioner, have reviewed dave kamp's letter he sent to the irs. >> i have not. i only saw it this afternoon briefly. >> this is -- so he writes a letter, lois lerner's hard drive crashes ten days later, you're in charge of ther

tim geithner was running treasury. doesn't treasury oversee the irs?e treasury has a role. we are going to pursue all of these lines of inquiry. treasury, the federal elections commission, other agencies including the white house. we want all this information and i can tell you we will not stop until we get it. >> so there is a hearing that's beginning tomorrow. tell me what you're expecting out of the house oversight committee holding a hearing on the lerner e-mails. >> some of the members of that committee under darrel issa watched that hearing. they heard the testimony that the commissioner put out there. they will continue to pursue lines of inquiry in all of this. they have some broader jurisdiction which allows them to go after aspects of this. we have special powers that allowed us to dig and get information that they didn't have. so the two committees have complimentary roles. and i think combined we will get to the bottom of this before it's all over with. it's not going to go away. >> yep. >> it's not going away. >> congressman, we'll be watc

we begin with treasury secretary jack lew. [applause] >> thank you, john, for that kind introduction, and i want to thank the center for strategic and international studies for hosting this event. for decades, csis has done tremendous work to shape national security policy, and it is great to be here today with so many people who have dedicated themselves to tackling our strategic challenges. i also want to thank the men and women who have made treasury's office of terrorism and financial intelligence -- tfi -- the indispensable institution that it is today. in particular, i want to thank under secretary david cohen and his predecessor, stuart levey, for their vision and hard work. i also want to recognize members of tfi's leadership team -- danny glaser, leslie ireland, adam szubin, jennifer shasky-calvary, and eric hampl -- for their outstanding service to our nation. and i want to express my appreciation to the over 700 dedicated civil servants who are the backbone of tfi. we meet today almost 13 years since the deadliest a

my thanks to david and the treasury for hosting this. also my little caveat -- i look around the room. trepidation i am here before you as one of the few representatives on the private sector, after a seven-year teacher, which i would not trade for anything. rewardingof the most experiences of my life. just to underscore what neal overstate the confidence factor in the integrity, solidity, solvency, and resiliency of the global financial sector and the u.s. i natural sector is elf. accordingly -- and the u.s. financial sector itself. accordingly, this issue of compliance, sanctions is taken extremely seriously. any given institution is only as good as its reputation. say reputation, reputation, reputation at the top of their list of things first and foremost on their minds when it comes to running their businesses, assuring the solidity of their businesses, building those businesses going forward, irking with their counterparties, let alone dealing with their own employees and local communities -- working with their counterparties, let a

it made treasury a real player. as i said earlier, my risk -- my concern now is it's become so good and they've become so effective people think it's a silver bullet rather than just one element of a comprehensive strategy. >> i agree with that. a couple of things on the office. first of all, it really is a truly nonpartisan set of tools. bipart sfwlan set of tools. it may be one of the first personnel calls that i made during the transition in 2008. we can track down stewart levy at an event. >> and talk to -- >> and to beg him to stay into the obama administration. luckily, he did. it did, i think, to steve's point, it resulted in continuity and building on the tools and the insights that have been developed in the bush administration that we built on going forward. it really is a bipartisan -- treasury is at the table. they have been at the table for addressing some of our most important security issues, national security issues, whether it be the terrorist threat or whether it be the north korea challenge or the

in the short term, watching the measures that treasury and the u.s. government is taking with respect to sanctions in particular individuals, i think it's very calibrated. people seem to be moving away. you want to avoid sort of at this time for tat ratcheting -- tit for tat but the message not just to those affected immediately but other elites who surround putin who kind of get the message that gosh i might be on those cross hairs at some point too. and counter parties of those elites who suddenly might say well, gee, should i really be dealing with mr. x. or ms. y who is a known longstanding associate of the regime? >> so it's liar days. >> let me shift then to some systemic questions and this is where i'll come back to the dollar issue that you alluded to. as you've said, the at tractiveness of the american economy, capital markets, the role of the dollar as the chief currency, the dollar clearing process itself all plays into the u.s. hand and tfi's hand the, the ability to use these tools to isolate rogue actors. does there come a point, though,

we have treasury yields jumping above 2.8%. there is a risk again that the pressures of the lira would emerge. on the other hand, the central bank by living the upper end of the corridor at 12%, it has left some head room to play around with the rates. because they are concerned about the lira. in that case, of course, we'll see another reaction of the rate and then the central bank will be questioning the credibility. >> thank you for that from commerce bank. we have comments coming out from the russian foreign minister, mr. lavrov, who says russia will submit a draft to the u.n. security council on monday calling for an immediate end to violence in ukraine. the draft resolution would also call for humanitarian corridors in the east of the country as well. more on that to come. >>> also still to come, wallets at the ready. a new report says the emerging report says consumers are ready to splash the cash. where? we'll get details after this. ♪ ♪fame, makes a man take things over♪ ♪fame, lets him loose, hard to swallow♪ ♪fame, p

international studies recently hosted a forum on the treasury department's role in national security affairs. next, congresswoman jane harman and former nsa director keith alexander take art >> thank you very much. from "the newger york times." it is a great pleasure to be here. today will be about financial intelligence. it flows very nicely from what you heard from stewart and the first panel. we have a great panel of experts here. to my immediate left, you're right, michele flournoy, the secretary of policy at the pentagon for -- how many years? 3? seems to have plunged back in. jane harman,, who of course served in congress and a number of different intelligence committees along the way and now runs -- and general keith alexander, who just left -- eight years? is it eight years at nsa. the last year was a doozy. [laughter] leave theirtry to last year at their job quietly, but general alexander decided that would be too boring. so, my hope today is to pick up from where the panels were, talk a little bit about the role of intelligence in some of these individual cases, and then lo

>> i think treasury, if you think about it, we go back to about this time last year, treasury's away was fully diluted in the 90% range. so we've made huge strides in getting treasury down to 15%. treasury is not a long-term shareholder. my expectation is when they find the time is right, and i personally believe that will be between now and the end of the year, they will exit and i think that will be obviously a tremendous win for treasury, because as of today they've gotten back 17.9 billion on the 17.2 billion they put into the company. the remaining overage is a billion 8, so for the american taxpayer this is a hole run. i think they're anxious to declare the home run and take the victory lap. >> mr. carpenter, i want to get your reaction to the defeat of eric cantor in the primary overnight. what kind of impact do you think this will have on the business community with regards to its relations in washington? >> well, you know, i'm certainly not a political expert by any means. i look at this as a continuation of a trend of frustration and rejection by the american voter with the

>> i'm told by the people who read the white house letter, the white house found out from treasury. nobody from the irs talked to the white house. >> someone from the irs talked to treasury, then. >> that's what i understand. >> as i said before, we'd like to know who that person is. i hope you'll find out. can you make a commitment you will find out who those individuals were work who talked to the treasury, chief counsel, who then talked to the white house two months before the people's house got the same information? can you make that commitment? >> i'll do my best. >> well. i yield back. >> will the gentleman yield? >> i yield. >> i appreciate you finding out. it would save us the trouble of going to through all the people you. said, and i'm paraphrasing, maybe the white house wouldn't release it the way ways and means released a document. is that right? >> yes. in other words, my experience has been, in this issue, that any information that comes out piecemeal immediately gets an overreaction to it. >> so -- well, your overreaction is your statement. the i if have is, hasn't th

treasury. we personally negotiated each and every compensation package. a really set the gold standard for this. >> he said to you and those running tarp at the time that he needed to pay his executives properly, that top executives could not be subject to some of the caps on being put in place. in the end, those were the right decisions? >> i think so. i think we balanced the political outrage at the bonuses that had been paid to aig employees with bob's foresight, his vision in understanding what the future held for the company, -- each individual employee we worked that out through a negotiation process. asked what was most effective about -- >> what was most effective about bob benmosche? >> he knew the fact. he came prepared. it was not simply from 30 thousand feet. he came in and with each employee he had a dossier. he had the information. he knew what he needed. he came up with creative alternatives to simply more money, less money. he left treasury impressing everyone. >> what is your b

begins withon treasury secretary jack lew. it's great to be here today with so many people mo have dedicated themselves to tackling our challenges. i also want to thank the men and made tv f.i. the indispensable institution that it is today. tacker i want to thank david cohen and his predecessor for work.vision and hard i also want to recognize members of t.f.i.'s leadership team, ireland, zubin, shasky and haskell. express my dead case to the civil servants who t.f.i. back bone of we meet today almost 13 years since the deadliest attack on place, oneil took that killed nearly 3,000 and courseur nation to its of everyone here remembers september 11, the horrific attack that unfolded quickly and time. at the same first, in new york, then washington, finally pennsylvania. was a tragedy unlike any other, catching us by surprise and shattering a sense of as americans we had come to feel. working and living in new york i that day as the twin towers fell, and so many lives were changed forever. this is a turning point for our nation

because it makes money for the taxpayer and returns of money to sit treasury -- to the treasury.ohn: the money made money to -- intelligence to make the difference is you have a reserve calculated by the cbo to put any risks assumed then over a period of time that the fees charged make a profit for a the taxpayer. every industrialized country in the world's say this is the way to get jobs. with germany has one of the largest surpluses we have the largest deficit. >> the ex-im bank is not subsidized it is the loss of the treasury. >> i think it should read again a bit bigger but not a lot. john: why not make it bigger? >> but the only way to go into the armaments is with arms you don't disarm first then saying then dig the other side to disarm. not even george mcgovern propose that. controlling the efforts of foreign governments to subsidize exports. >> then maybe we could get rid of there's? >> we're in debt negotiations now to downscale and eliminates authorities of this type and it will be difficult but if we throw away xm before the negotiations and then you can guarantee that

this is the yield on a ten year treasury, all the way down to 2.54%. when you get a lousy gdp numbers a hint is that the economy slows down, down go interest rates. i have a big name, you know it, general mills is down 3%, a big drop. disappointing sales. struggling with serial and yogurt sales down 3%. watch out apple and amazon, google is expected to unveil box that its developers conference that starts in the next hour. google and another 6 points at $5.78. mcdonald's testing and ordering apps. some see this as an antidote to the $15 minimum wage. we will see. mcdonald's at $101.48. now really big winner, binds and noble, that is a surprise to me. tell me how much it is up and why. nicole: a new high is what we should start off with, it is of 7.5% and $22.13. this is on the news that by the end of the first quarter, as they will in fact be shredding their retail business and of course the ceo saying this would bring the best shareholder value, stock jumped on the news of this split which is why you are seeing this today. you know the nook has had tr

jack lew, secretary of the department of treasury. he has testified before our committee on a number of occasions. without objection is written statement will be included in the record. mr. secretary, you are now recognized for your presentation. thank you. >> thank you very much, mr. chairman. chairman, ranking member, members of the committee, thank you for the opportunity to testify today on the financial stability oversight council of 2014 annual report. nearly four years ago president obama signed into law the dodd-frank wall street reform. as everyone recognizes the stable, driving financial sectors criticality to our prosperity and that is why these historic save kurds were established. today our financial system is more resilient, confidence in our market is robust, and the agencies charged with protecting consumers and investors are in a strong position to respond to emerging threats that could hurt our economy, damage ministry business sense and destroy jobs schiedam. one of the lessons from the financial crisis was recogniz

market,at the treasury you see yields stay lower. you see treasuries hold onto their gains. the tenure is down in the point. you have got to put that in context. the two year yield was a high we had not is less attentive to the s tatian was that you could get a little bit more and that is early the line. every economist under the sun was the another and billion dollars per and that is what they got. -- the forecast will provide noise. higher inflation. how far away is she from the labor market and will she tolerate higher in nation to get there? what was the key point. >> how would you sum up the initial reaction? >> noisy. 50 different headlines. what matters is how the reaction goes into the rest conference, where the smart money starts coming into play. a lot of noise on the headlines but it is the color provided. >> jonathan ferro with market reaction and the breaking news from the fed. thank you. our roundtable thomas do with us is michael mckee at the federal reserve. the chief fixed income strategist, tom keene, bloomberg surveillance host, gentlemen, thank you so muc

they continue to be rampant through, all of these things that treasury does. two sets of rules. >> the regulators have gone to great lengths to try to reflect the special circumstances around small banks and community banks. and it's not the banks that the standards for stress test it is the regulators who conduct the stress test. >> yet, but mr. secretary, your own on the banks to also determine their own models on how they determine the capital and that's not right. because you have to have same set of standards for everybody. you can have two sets of standards. it goes back, well, i discover real problem with that particular -- let me just go, i have 24 seconds left. your comment a while ago that insurance companies, it's sunny, absolute stunning. i decided to give me an example of one insurance company that truly the interest part of the business was a cause of the collapse. tell me, was at an entrance polls, insurance rate, insurance lack of claim processing? was that because of 2008? >> i use aig as an example. >> mr. secretary, you know as well as i do

it subsidized the treasury. it subsidizes the loss of the treasury with all of the loopholes. >> shouldn't we make it bigger? >> i think it needs to get a btg bigger. >> if it is so good why not make it much bigger. >> we need to negotiate with the europeans to shrink theirs and ours simultaneously. the only way is you go into the talks in arms. th disarm first, sing couple b cou awe. >> that is your goal we keep ours maybe we can get rid of theirs and then we get rid of the banks? >> we down scale and eliminate export authorities of this type. >> they will be difficult negotiations but if we throw away xm before we go into that you can guarantee failure. >> you cite the companies that get help but what about the side effects? you give the airline a special break and that hurts americans who work for say delta. here's what he said at the hearing. >> the prime example is air india. a government owned government subsidized airline with the growing banks of xm financing. that cost about a thousand jobs. if if i can

treasury data showed belgium holding three hundred forty one point two billion dollars in u.s. treasuries and that's caused a lot of head scratching i mean who is the ultimate holder of these bonds but i want to get your opinion what's your whole take on the brouhaha over tiny little belgian popping up as a major holder of u.s. treasury bonds and yet this should be raising more than a few eyebrows you know i have to me it's too much of a convenient coincidence that jest when the federal reserve started to taper a brand new buyer emerged out of belgium to pick up the slack you know it makes sense to me i was saying for a while that the fed wasn't going to taper because they knew that if they tapered rates would spike and the economy in the markets would go down and then they would have to and taper and they would lose a lot of their credibility so maybe the fed only tapered because they knew somebody was out there to cover their back to buy all the bonds that they weren't buying to keep rates from rising so maybe the fed is working with the. e.c.b. or some other entity and they'

treasury volatilities, i call this systemic volatility being too low. and so the fix has put in extraordinarily low print on friday. there's still volatility within the equity market ecosystem, if you will. in other words, the volatility levels for small cap stocks are still very elegant. for some of the technologies as well, there is still, i would say, some lack of complacency within the equity markets, but i think you also have to consider that the print has to be considered against the low. and many are even lower. yes, it's concerning. yes, it should be higher, but will it be dramatically higher and reset over the summer? i don't want know. >> we'll have more on that later in the show. >>> meantime, we'll look at today's other top stories. apple begins life anew today as the iphone maker's 7:1 stock takes effect. apple will start to trade on the split adjusted price of $9.22. shares have rallied 22% since the split was announced in april outpacing the s&p 5003.7% gape. but history hasn't been kind in the short-term. apple has split three times befo

are still cheap relative to treasury.n just a minute, but now that you've both stated your opinions on where you think your money is best put, sandy, let's put up your three picks. lkq corp. because in the next hour it's the favorite of one of our pickers, and sotheby's. give we me the reason -- give me the reason you feel these deserve investors' attention. >> lkq actually stands for like in kind end quality because they're selling auto parts mostly to body shops that are about 20-50% cheaper than new or oem parts. so we think that most body shops are funded by insurance companies, and most insurance companies just want the get that car back to you as quickly as humanly possible. so a couple of things in the first quarter, bad weather where literally people couldn't get into their shops, and then scrap metal moving away by about $15 a ton. they buy and sell about 200,000 cars even quarter, and i think this has knocked the stock down, and i think this is a great opportunity to buy a 22 percent grower at a 16 multiple. i c

the balance of this money goes to the treasury. >> the treasury. >> of the united states of america. >> correct. >> is that right? >> 1,057,000,000 last october. >> so are you telling us that you actually earn money for the government that goes in to the treasury? >> correct. we earn money because we are taking in more money than it requires to run the bank. >> so in earning money, there's no way that anybody can credibly say that you're providing well fair for corporate interest, is that right. >> that's correct. >> it's an absolute untrue statement. >> it is a misstatement as it crony capitalism is a misstatement as well. >> well thank you very much. and i hope that as we go through these discussions, you will say that over and over again. we have got to rob the on opposite side of ability of undermine the tremendous work that you're doing. that you are allowing the united states to get least get the balance of payment and get us into the ex-port business. if it wasn't for your 2% that you're doing we would be out of it together. i thank you and i yield back the balance of time. >>

with opening remarks by treasury secretary. speakers including former national security advisors former nsa director. starting it 8:30 on c-span three. and missouri senator claire mccaskill will hold the second in a series of roundtable discussions on sexual assault. live on c-span three. from a policy perspective, the way this should work is congress should appoint an agency. it has the authority to manage and inspect resources of the country. look at the highest and best uses of those resources. national security functions and also broader spectrum needs of the industry. >> issues facing the telecommunications industry with verizon executive craig silliman. >> special operations manager use stories from his navy seal training as the backdrop for this year's commencement address at the university of texas. he is a u t graduate. he described wallowing in cold med -- mud. this is 20 minutes. >> thank you very much. [applause] thank you. thank you, president powers. members of the faculty, family and friends, and most importantly

short treasuries. here is this reason why. i think largely what's going on right now revolves around behavioral finance. i got evidence the last couple of days, just as everyone else does that follows the position of hedge fund speculators and primary dealers. primary dealers were net short the treasury market in march. they have now reversed and are now long. hedge funds, speculators in terms of their positioning last week, they reduced their short exposure by the largest amount they have done in years. this morning, when we got the ism report, forget about the correction to it, when we got the ism report, that was a weak report given the print. what should have the u.s. 10 year treasury yield done? it should have gone down. it went up. to me, that was the last confirming indicator we are playing game right now, it's a trade, not investor and i think the next move in yields is 2.75. >> what is your nightmare scenario, i understand what can go right here and don't disagree with your logic. what is the nightmare scenario from e

citizens who had hidden their accounts from our treasury. now, u.b.s. later signed a deferred prosecution agreement with the u.s. treasury and the department of justice in which they admitted helping -- that's aiding and abetting -- u.s. clients evade u.s. taxes. they -- we're talking about u.b.s. now. they paid a $750 million fine. they turned over the naisms -- y turned over the names. they turned over the names of 4,700 clients. u.b.s. was into the alone. earlier this year, in a bipartisan report -- this should not be a partisan issue, madam president -- another bipartisan report that issued with my current ranking member, senator mccain, the subcommittee showed that credi credit swiss d been involved in the same type of aiding an abetting. credit swiss had opened about 27,000 accounts for u.s. with up to $20 billion in assets that were undisclosed to u.s. tax thortds. after its wrongdoing was exposed, credit swiss pled guilty to facilitating u.s. tax epagesvation and paid a -- evasion and paid a fine of about $2.6 billion. in both those cases, the s

for the treasury and all of these conflicts started to arise. if you are to say what are the challenges in his personality? i think one of them is he was plain spoken. he said exactly what he thought even if it was very abrasive. he was not afraid who he said it to. he was not one to play political games. he just rejected that. when he doesn't get along with the territorial officials and word gets back to washington d.c. and complaints back and forth, you just have conflict starting to build and tension starting to build where thed. of the united states at that time was buchanan sent an army about 3,000 u.s. soldiers. that was a major part of the army at that time to put down what they perceived as the mormon rebellion. they were going to burn their houses. most of the people left the valley and there was a man standing in front of his house ready to burn it to the ground. the army passed through peacefully and set up fort south of salt lake city. one of the issues that the federal government was concerned about was the report of plural marriage