the representative was talking about the volker rule. million americans understand what is the volker rule. it is a ruled lay down and financial reform by the former chairman of the federal reserve which controls the trading activity at the banks. is that roughly right? >> that is roughly right. only about one third of the volker rule has been put into practice. stuart: what we are looking at here is political theater. you have congress people sitting up there trying to look good for the folks back home. charles: why would a republican from michigan, why would that be his question? she talked about spending and the rapid economic growth. people are not using credit. the housing market rebound has been without main street. it had to be over 40%. people have not bought into it. he should have followed up on that. stuart: when will you stand for office in the great state of new jersey? charles: that was a bad question. so what about the big banks right now. >> in fairness, yelling is very focused on real wage. this is one thing she is very

volker role? >> there is no economic analysis , which is grievous considering the fact that the volker rule could have on why having a requirement a statutory cost benefit analysis would be an important step forward for the fed. >> thank you, mr. chairman. >> the chair recognizes the gentleman from north carolina, mr. pittenger. >> thank you, mr. chairman. thank you all for being here today. how deeply the volker role will affect mainstream america and is there anything the five regulators can do to calm the fears of the financial industry? >> we can start with you if you like. >> one of the issues i don't think discussed enough in the volker rule is you combine that with the liquidity coverage requirement in the new capital rose received under basel, i worry we are putting our thumb highly on the scale towards essentially government debt towards the year. one of the things we need to do is quite interesting. if you took a balance sheet and craft went into to businessperson funding to government,

>> regulators applauded that they completed the long-awaited volker rule in december. we heard concerns from republican senator mike crapo. he is worried about the multiple agencies involved going forward. they have created an inter-agency group to coordinate the efforts, but they do have a lot of work ahead in terms of. frank dachshund. frank liquidity frank liquidity rules and security roles, and elizabeth warren wondered if it is all enough. -- jamie dimon got a raise after he negotiated $17 billion to pay off for activities that were illegal that he presided over. i'm not quite sure how this is a deterrent for other ceo's. >> i will not comment on the specifics of that case, other than to make the point that i do not know whether it will be a deterrent. reiteratedh warren her push for a 21st-century glass-steagall rule, saying there are too many banks that are too big to fail. hughes, thank you. we have breaking news on the sac case. su keenan has details. sa capitolc, the insider trading trial, the jury has a verdict, an unusually quick return for a verdict. we ar

her about the vocal rule and about the cost of austerity that this institution has adopted -- the volker rule and about the cost of austerity that this institution has adopted. she was pretty frank about it. >> and there is been quite a high standard she has placed for turning the bond program back on. what is your sense? >> she was very careful. the bigger story is not what happened today, but the fact that the taper has been put in place and discussed without major dislocations in markets. we will keep our fingers crossed that continues to be the case. >> thank you very much. a busy day for you on the floor, and with janet yellen as well. back to you. >> thank you very much, peter cook. joining us from our nation's capital where the u.s. house of representatives has just voted to lift the debt ceiling. the talk about something called the playbook for the playbook, for your pocketbook. the average cost of a wedding budget is more than $28,000 and if you live anywhere in the metropolitan region, it could cost you an average of more than $75,000. here now to help us figure out how to pay

together with other federal agencies the board also issued a final rule implementing the volker rulewhich prohibits banking firms from engaging in the short term proprietary trading of certain financial instruments. in addition, we recently finalized of rules implementing enhanced provincial standards mandated by section 165 of the dodd-frank wall st reforming consumer protection act. on the supervisory front the next round of annual capital stress tests, the largest 30 bank holding companies is under way, and we expect to report results in march. regulatory and supervisory actions, including those that i leading to substantial increases in capital and liquidity in the banking sector are making our financial system more resilience still, important tasks lie at. we are working to finalize the proposed rule, strengthening the leverage ratio standards for u.s.-based systemically important global banks. we expect to issue proposals for risk-based capital surcharge for those banks as well as for a long term debt requirement to help ensure that these organizations can be resolved. in addit

to be chairman of the federal reserve was a tall, young american road scholar by the name of paul volker, who was a good teaching aid. what happened next? to me, it's a shame. ask anyone who did an underdegree in economics about bill, they know nothing about the air force, nothing about the metals or the prison camp. they may know about the phillips machine, but they are a quaint, apt kuwaited, who makes a computer made of water these days. we have models that are much more complicated and better, you can't see huh they work. there is one thing people know about bill. bill is the discoverer of the curve, and he observed it with a correlation between inflation and unemployment. that's the gist idea. when inflation is low, unemployment is high. he put together some diagrams. he used draft paper, showed it the colleagues who got veryings very excited about it. you got to publish this. very important. he said, well, i don't think so. it's a rushed job. it's just a correlation. his colleagues insisted. the curve became thee most cited journal article in the history of macro economics. paul, t

paul volker sent him a note that said congratulations, you are now a central banker. chair yellen, you face the daunting prospect of facing a balance sheet that we have never seen before, in the face of an economy that is underperforming at best. allow me to paraphrase. congratulations, you're now the chair of the central bank. we look forward to working with you to ensure that the federal reserve has the tools that it needs to operate effectively into the next century. we look forward to working with you closely as the committee embarks on the year-long federal reserve centennial oversight project. any agency or bureau of government that is 100 years old probably needs a good checkup, especially one as powerful as yours. independence and accountability are not mutually exclusive concepts. the most critical issue we must examine is the limit of monetary policy to promote a healthy economy. we have witnessed the greatest fiscal and stimulus program in the nation's history. the results could not be more is -- disappointing. despite the more than five years into the so-c

. >> would you say you are satisfied with how it came out with volker?nor where it is. we have not seen it. do you believe it was done in that situation? >> i think what is important is dodd-frank required the federal reserve decision about the cost and benefits of putting those registrations in place. likely cost and benefits would be. our job has been implemented. we have certainly taken into account issued proposed rule, received a wide range. thousands and thousands of comments. >> i would encourage a true cost balance. i think anyone's estimation was not done fully. speaking of the governor, the president has not yet appointed anyone to fill the position of supervisor division vice chair. would you say that governor true is affectively holding that position until it is completed? >> we operate as a board system. usually three governors and a chair. governor true low hits the board banking supervision committee. but all of us are involved and all of us are responsible. >> would you commit to have him come and testify since he seems to be filling that

paul volker sent him a note that said congratulations, you are now a central banker. , you find the -- face the daunting prospect of facing a balance sheet that we have never seen before, in the face of an economy that is underperforming at best. allow me to paraphrase. congratulations, you're now the chair of the central bank. we look forward to working with you to ensure that the federal reserve has the tools that it needs to operate effectively into the next century. we look forward to working with you closely as the committee embarks on the year-long federal reserve centennial oversight project. any agency or bureau of government that is 100 years old probably needs a good checkup, especially one as powerful as yours. independence and accountability are not mutually exclusive concepts. the most critical issue we must limit of monetary policy to promote a healthy economy. we have witnessed the greatest fiscal and stimulus program in the nation's history. the results could not be more is pointing. despite the more than five years into the so-called obama recovery, we still see milli