those loans and higher and higher mountains of debt were being built on loans that were fundamentally unsound. and all of us now are paying the price. now, i believe it was e right thing to do, as unpopular as it is, it was the right thing for us to do, to step in to make sure that the financial system did not collapse, because things would be even worse today had those steps not been taken. it originated under the bush because, you know, whether you , are on the left or the right, if you talk to economists, they said that this could have the kinds of consequences that would have dropped us into a deep depression, and not simply a very severe recession. now, one of e success stories of the past six months is that we really have seen a stabilization in the financial system. it's not where it needs to be. but people are no longer talking about the financial system falling off a cliff. we've stepped away from the brink. and that's important. because what it means is, a lot of companies right now that can go into the marketplace and borrow money to fund inventory, fund payroll, and that will help

those loans and leveraging those loans, higher mountains of debt were being built on loans that were unsound. all of us now are paying the price. i believe it was the right thing to do. as unpopular as it is, it was the right thing for us to do to step in to make sure that the financial system did not collapse. things would be even worse today had those steps not been taken. it originated under the bush administration. we continued it because, whether you are on the left or the right, if you talk to economists, they said that this could have the kind of consequences that could drop us into a deep depression, not simply of severe recession. one of the success stories of the past six months is that we really have seen a stabilization in the financial system. it is not where it needs to be, but people are no longer talking about the financial system falling off a cliff. we have stepped away from the brink. that is important. it means there are a lot of companies right now that can go into the marketplace and borrow money to fund inventory from payroll, and that will help the economy grow as a w

those loans and leveraging those loans, higher mountains of debt were being built on loans that were unsound. all of us now are paying the price. i believe it was the right thing to do. as unpopular as it is, it was the right thing for us to do to step in to make sure that the financial system did not collapse. things would be even worse today had those steps not been taken. it originated under the bush administration. we continued it because, whether you are on the left or the right, if you talk to economists, they said that this could have the kind of consequences that could drop us into a deep depression, not simply of severe recession. one of the success stories of the past six months is that we really have seen a stabilization in the financial system. it is not where it needs to be, but people are no longer talking about the financial system falling off a cliff. we have stepped away from the brink. that is important. it means there are a lot of companies right now that can go into the marketplace and borrow money to fund inventory from payroll, and that will help the economy grow as a w

those loans and higher and higher mountains of debt were being built on loans that were fundamentally unsound. and, all of us now are paying the price. now, i believe it was the right thing to do. as unpopular as it is, it was the right thing for us to do to step in to make sure that the financial system did not collapse, because things would be even worse today that the steps not been taken. it originated under the bush administration. we continue it, because, with your on the left of the right if you talk to economists, they said that this could have the kinds of consequences that would drop this into a deep depression and not simply a very severe recession. now, one of these success stories of the past six months is that we really have seen a stabilization in the financial system. it is not where it needs to be, but people are no longer talking about the financial system falling off a cliff. we have stepped away from the brink and that is important because what it means is there are a lot of companies right now that can go into the marketplace and borrow money to fund inventory from payrol

those loans and higher and higher mountains of debt were being built on loans that were fundamentally unsound. all of us now are paying the price. now, i believe it was the right thing to do, as unpopular as it is, it was the right thing for us to do to step in to make sure that the financial system did not collapse, because things would be even worse today had those steps not been taken. it originated under the bush administration. we continued it because, you know, whether you're on the left or the right, if you talk to economists they said that this could have the kinds of consequences that would have dropped us into a deep depression and not simply a very severe recession. now, one of the success stories of the past six months is that we really have seen a stabilization in the financial system. it's not where it needs to be but people are no longer talking about the financial system falling off a cliff. we've stepped away from the brink. and that's important because what it means is there are a lot of companies right now that can go into the marketplace and borrow money to fund inventory,

those loans and higher and higher mountains of debt were being built on loans that were fundamentally unsound. all of us now are paying the price. now, i believe it was the right thing to do, as unpopular as it is, it was the right thing for us to do to step in to make sure that the financial system did not collapse, because things would be even worse today had those steps not been taken. it originated under the bush administration. we continued it because, you know, whether you're on the left or the right, if you talk to economists they said that this could have the kinds of consequences that would have dropped us into a deep depression and not simply a very severe recession. now, one of the success stories of the past six months is that we really have seen a stabilization in the financial system. it's not where it needs to be but people are no longer talking about the financial system falling off a cliff. we've stepped away from the brink. and that's important because what it means is there are a lot of companies right now that can go into the marketplace and borrow money to fund inventory,

with mortgages is a prime example of where abusive of mortgages to consumers were also unsafe and unsound and frequently we will find with the consumer price -- compliance problems that have any one of the problem with is management and institutions with a strongly that the rule writing should be for banks and nonbanks and we're on without examination enforcement mechanism should focus outside the banking sector where you don't have much examination enforcement activity at all with a mortgage broker soren pay lenders there are a lot of abuses outside the banking system that we think could and should be addressed by this agency but we think there crocus to be on creating more robust enforcement mechanisms for the non big center. i don't understand and why taking on examiners from the bank regulators and putting in this new agency and making responsible for banks and nonbanks is going to work -- i don't think it will hear it would be highly disruptive to the fdic and that is 25 percent of my examiners pulled on of the fdic and i assume it's a similar percentage for the other regulators. now

i think that's fundamentally unsound. >> right now, if you had to vote this minute, would you vote against her? >> well, i think we should give her that hearing and a fair hearing. i'm committed to that. and i think that's the right thing. i hope people will say, this is the best hearing we've had in many years. >> senator sessions, thanks so much for your time this morning. do appreciate it. >>> lonnie quinn of the saturday early show is filling in for dave price. he has a first check of the weather this morning. good morning. >> good morning to you, harry. good morning, everybody. >>> take a look at the big map. the first thing i want to address, the northern plains. you're going to catch wet weather later this afternoon. some of it could be on the severe side. elsewhere, if you're looking for the wet stuff, it would be in the southeast. pop-up storms for you. some of it could drift northward to the mid-atlantic states. elsewhere, sunny skies or partly sunny skies. big time heat from the southwest into texas. places like phoenix, arizona. you could hit 116 degrees. that would be a new >>

those loans and higher and higher mountains of debt were being built on loans that were fundamentally unsound. and, all of us now are paying the price. now, i believe it was the right thing to do. as unpopular as it is, it was the right thing for us to do to step in to make sure that the financial system did not collapse, because things would be even worse today that the steps not been taken. it originated under the bush administration. we continue it, because, with your on the left of the right if you talk to economists, they said that this could have the kinds of consequences that would drop this into a deep depression and not simply a very severe recession. now, one of these success stories of the past six months is that we really have seen a stabilization in the financial system. it is not where it needs to be, but people are no longer talking about the financial system falling off a cliff. we have stepped away from the brink and that is important because what it means is there are a lot of companies right now that can go into the marketplace and borrow money to fund inventory from payrol

with mortgages is a prime example of where abusive of mortgages to consumers were also unsafe and unsoundd frequently we will find with the consumer price -- compliance problems that have any one of the problem with is management and institutions with a strongly that the rule writing should be for banks and nonbanks and we're on without examination enforcement mechanism should focus outside the banking sector where you don't have much examination enforcement activity at all with a mortgage broker soren pay lenders there are a lot of abuses outside the banking system that we think could and should be addressed by this agency but we think there crocus to be on creating more robust enforcement mechanisms for the non big center. i don't understand and why taking on examiners from the bank regulators and putting in this new agency and making responsible for banks and nonbanks is going to work -- i don't think it will hear it would be highly disruptive to the fdic and that is 25 percent of my examiners pulled on of the fdic and i assume it's a similar percentage for the other regulators. now we

roles were not falling and of the rules and then you need to determine whether it is an unsafe and unsound and make the judgment about that, so i don't think anybody should promise to you that as soon as any firm stars doing anything dangerous that summing later is going to be able to stop it, it's going to have to evolve over time and if the rules are set right you should be contained a good bit of that to begin with. >> thank you very much, senator tester. >> thank you mr. chairman. all of you have talked about regulatory gaps and systemic risk and all of this. governor tarullo, one of the points he made was on accountability, you can diffuse the responsibility. later on you talk about silos and i don't want to put words in your mouth but you were opposed of one agency determine the solution to the problem and i may be wrong when i heard but that is what i thought i heard. we are at a point where we know there are regulatory failures and i think there is an opportunity to fix what the president put forward with this proposal, but shouldn't be push for further consolidation to stop the ga