thank you, rich formerly known wachovia bank used to sponsor the wachovia classic until they got browbeat by members of congress doing rich's beating and withdrew the name and so now rich says what are you with drawing the name for. this is classic micromangaging in no wonder business is under the gun. >> what's the roi on it? >> let me tell you exactly what the roi on this -- what they're doing in corporate sponsorship's -- in fact at the pga this week in the twin cities where i'm from, they're investing in their best clients, they're saying come to our tournament. you're the best client we've got, this is a discount to their best client. >> he wants a hard number. what's the roi? >> well, rich, if you looked at the p & l in these companies, let me know. >> here's the deal, public companies, why don't we look at it? >> well, give me numbers. i'm asking you. we don't know the numbers, because here's part of the problem. they need to come forward and say, listen, we're doing those corporate sponsorships because it gives us x million dollars and increases business. if you can't prove that t

shooters are telling us that a wachovia bank was robbed. they were able to locate this vehicle they believe that the suspect was driving. they stopped the vehicle, the officer approached it and saw the suspect espying a weapon. they shot and killed the suspect. we will continue to watch live pictures and bring in new details on this. the u.s. army is moving beyond boot camp. they are training the army to fight mental stress. they want more than 1 million soldiers to take part in emotional resilience the class's. >> is based on the research of dr. martin seligman of the university of pennsylvania. they call him "dr. happy." they want to train 1500 sergeants to conduct a 90- minute class is in anchor management, a $117 million program. jane: it sounds touchy-feely, for lack of a better term. what is the reaction? >> george casey was asked that very thing at a hotel outside of the agency, and he was asked, is this too touchy-feely? there were mixed reactions. it is awkward, but it down the stigma of mental health issues, because they are facin

wachovia 2% and national city 0%. is this because the banks are not doing this? the home modification program is stupid to begin with? what is it? >> the numbers are disappointing. no question. remember this is a complicated program. the industry does not have the capacity to do this complicated program quickly. they are all gearing up and the big banks are gearing up strongly. it's in everyone's interest to get it done. it's a complicated program. i think they need something more simple and in addition they are not addressing the two key programs out there. the under water mortgage problem and the fact that we had a massive rise in unemployment which is causing the big problem in the market today. >> i know that given what one thing ken said, the under water mortgages, you agree on one thing. principal reduction should be a part of this. the banks have fought against this strenuously. they would rather give you 10 extra years than cut the value of the loan. is there a way to have our cake and eat it too. go back up and give the banks a piece and maybe they would

. >> you don't think the loan portfolios from wells fargo and w wachovia are undervalued right now? you don't think they will recover? >> they will eventually. but the problem is the fall of this year where you have a 3.4 trillion dollar commercial mortgage problem and consumer credit cards and consumer loans and small company loans going into increasing rates of default. that's the problem. >> john, there's all kinds of reasons that problem won't be anything compared to what we went through with housing. commercial real estate won't be that bad, we didn't have a subprime problem. let's get donald in. where do you stand on this donald? are you starting to turn more bullish? i actually went out shopping for apartments on the weekend. >> for an equity buyer, fun to talk about the economy. i look at what i'm buying, what i'm paying for it and how like will hold it you can find plenty of problems, when its go up, everybody looks at things good and when it goes down, looks at things that are wrong. >> what about housing? i think we're about to pop here. >> hopefully. i think helicopter b

g remember, we closed washington g mutual and sold it off, g wachovia. these were monster institutions right in the middle of all of this. one other thing. what are we looking for? some magic pill that allows us to get through every problem without any hiccup in the markets? the stock market can't go down, nobody can be scared, because g that's impossible. in a process of having a major g firm hit financial difficulties, you are going to have fear, you will have worries, you will have the markets hiccup, you will have them go down. >> have either of you guys changed your mind in this discussion? >> listen, nobody knows the answer. the real question is we don't know. it's not just one piece of the banks, could be the major solvency, if that happens, you saw what happened in lehman brothers, it happened so fast in so many different directions, the risk of something like that happening again, what it could do to our financial system and therefore the economy are not acceptable. i would never take that kind of risk if i'm chairman of the fed or secretary of

>> especially wachovia and washington mutual. why?y didn't have the money to cover the dividend and it was obviously the dividends were too big. but telco companies and utilities like con ed had no problem maintaining their dividends because they weren't hemorrhaging money. you need to protect yourself from the dividends that can't be paid. i got another tip on how to spot a bogus dividend later in the show. here's the bottom line for my first four rules for helping you avoid losses. stay diversified. buy and sell slowly and your first loss is your best loss and dividends can limit your losses as long as they are safe. let's take calls. let's go to justin in texas. justin? >> caller: booyah, jim. >> booyah, chief. >> caller: hey, how you doing? >> not bad. fill me in. >> caller: i'm a new investor with a simple question. >> first of all, congratulate you on being a new investor. many people wait too long. how old are you? >> caller: i'm 25. >> fantastic. you got your whole life in front of you. let's make some money. >> caller: please

you're no safer there than you are at m abc news t or wachovia or bank of america and it's about making sure you have the accounts set up correctly so you don't have more than $250,000 in any given account. >>> i want to move on to questions we have. some from viewers. the recession. is it over? there's been so much chatter about this. you hear cautiously people saying yes, some saying no. >> i think you have to weigh cautiously. caution i think is the right word. we see some inventory levels starting to pick back up, businesses building back up inventory. my concern is we've not seen consumer spending. i would like to see more consumer spending before i could say that i feel better about the recession being over. we are consumer-driven economy and they are just not out there spending the money yet. notwithstanding the "cash for clunkers," that was a good thing and maybe back to school we see a little spike, until i start seeing the consumer really out there feeling comfortable spending their money i'm going to be a little bit more cautious. >> quickly, i think we have time for a viewer

regulators spent too much time looking at things that are conventionally defined as a bank citibank, wachovia, non they did not get into trouble but bear stearns, aig, and the brothers if they pose the same threat as the conventional bank that is why the president has proposed and oth people haven't seen today broad thing the financial sysm past to be regulated and we understand why that is. most of us do and you cannot set up a system where people go around and say i will shop for a regulator and put them against them so the president has decided not to put this together into one agency but the proposal is to make it less attractive for banks to shop around and banks need to have more capital than they had. it is the question, the shock absorber where you take your losses if you do not haveo go bankrup we have to find a way to make sure the banks have more capital so if we get intohis again, they have better shock absorbers. >> my question is a little mo broadly and the financial markets. more cultural and social why it a we as a culture ready to give billions of dollars of money to people w

and i guess wachovia was a bank-holding company? >> yes. >> does the fed -- do they have fed have the robust supervision or is that something the occ or -- or the fdic does on a day-to-day basis? >> the occ and the fdic have never been responsible for consolidated supervision. it they have no history of doing that. the fdic does not have of a supervory staff thahas any expertise in the complex banking institutions that we're talking about. the occ is already involved and was the bank supervisor of many of the institutions that have gotten into trouble. and in most of the large institutions, occ is the bank supervisor and the fed is the holding company supervisor. and they both to have work together. >> yeah. and they didn't do that in the last -- >> well, i think -- let's say neither distinguished themselves. >> okay. all right. do we need to determine the causes of the present financial crisis before we start legislating a x? and have we done that? >> it would be very helpful in my view to conduct a full and independent investigati

let's think about enron, tacio, arthur andersen, general motors, chrysler, ford, merrill lynch, wachovia, bear stearns, a.i.g., bank of america, exxon, and of the valdez fiasco, lehman brothers, washington mutual, countrywide financial, and so on. do we not ever consider? we talk about the inefficiency of the government and our enormous deficits. as of october last year our country had commended itself to something like $7.70 trillion with all the bailouts. >> if you could wrap it up because we have a lot of folks behind you. >> do we not ever consider -- yes, there is waste and fraud in government. but we need to give a lot more attention to the waste and fraud in business and the burden it places on society. [applause] >> thank you. scott, i share your concern about waste, fraud, and abuse wherever it is. the fact is i am elected to represent you in washington and overseas. your taxpayer overseas so, it is not my business to be in your business. [applause] look, i voted against all those bailouts. i thought it was the wrong direction. [applause] but when companies succeed or fail it af

slugged people with her purse and then unloaded a huge sucker punch, more than 17,000 fans packed the wachoviave: to watch her? brian: we should have showed some of the fight. it is a crazy place. sometimes the intensity gets high. so there you go. this goes on like two minutes. brian and the judge for the first time in a while. 9 to noon. xm serious and hopefully local station. i would riddle you now with the guests but they allude me at the moment. steve: put together three hours of great broadcasting. gretchen: i have to apologize. the latte you bought i spilled the entire thing on. steve: on me. [screams] gretchen: it's on the pope 6 his shoes. steve: the shoes are the color of coffee. brian: i'm so glad it wasn't me. twitter about it. gretchen: i just twittered that you get the lattes in the commercial breaks for us. now i have to twitter that i spill them. brian: let the record show that steve turns me down every day. steve: i want coffee i don't want a glass of hot milk. let's talk a little bit about. this over the last three or four weeks, we have had a number of people who have contac

enron, tyco, arthur anderson, gm, chrysler, ford, merrill lynch, wachovia, bear stearns, aig, exxon,the whole valdez fiasco. we talk about the inefficiencies of government and our enormous deficits. as of october last year, our country had committed itself to something like 7.7 trillion dollars, with all of the baliol's -- bailouts. i just want to ask, do we not ever consider, yes, there is waste and fraud in government. we need to give more attention to the waste and fraud in business and the burden it causes. >> thank you. i appreciate your comments. i share your concern about waste and fraud, and abuse, wherever it is. you in washington and overseas. your taxpayer overseas so, it is not my business to be in your business. [applause] look, i voted against all those bailouts. i thought it was the wrong direction. [applause] but when companies succeed or fail it affects those people who are making decisions for their company, the people who invest in them. that is held the system works. that is held the system works. i do not want to see government controlling business. chrysler and

. >> wells-wachovia company? >> in your area we're completely wells. >> guys, have a good week. we'll see john on friday. he'll turn in his tie for a pair of waders and fishing pole, joining us with steve liesman in grand lake stream, maine for jobs day. >> coming up this morning, nissan rolling out a new electric car. first, as we head to a break, let's look at last week's winners and losers. >>> nissan motor unveiling its new car, the leaf. electric cars will account for 10% of overall global vehicles by the year 2020. >> what is very important for us is that the consumer considers that buying an electric car is i good economic decision. we don't want him to say, i have zero emissions, but i have to pay a big premium for this. no. >> when we come back for this morning, we'll get this morning's top stories. and then the bell, please. put your pencils down. earnings season coming to an unofficial close. >> official close as far as we're concerned. >> we'll grade the carpenter tests and get scores after a break. hi, may i help you? we're shopping for car insurance, and our friend

bank that foreclosed and a group of investors took it over, i think it was in gmadymac and i think wachoviaook another one over. if we have other institutions that can buy them, it seems like we will still be in the same situation. i think it would be better to have less banks and institutions so we could deprive? it seems like we are propping them up with money and fdic. just pay the people back and let them go to a different bank. maybe you or a congressmen can answer that question. host: one of the things that we are concerned about letting banks fail is something that david chio about this morning. there would be fewer choices for services in the meantime. and who would larger banks have to turn to when they get into trouble? caller: i do not know if that answers my question. if you have 100 banks and are not making money, is it better to have 70 banks and use those to be smiling? that is kind of my question. thank you for your time this morning. host: call the numbers on your screen if you want to call in. you can follow us on twitter. we have a caller on our democrats line. caller: th

her prior experiences include work of the investor responsibility research center and wachovia bank.r next witness is mr. john j. castellani. he is the president of the business roundtable and chief executive offices of the u.s. companies. he joined the business roundtable in may, 2001, and has led the group's efforts on public policy issues. prior to becoming president of the business roundtable, mr. castellani was executive vice president [unintelligible] our next witness is mr. j. w. barrett. he is a professor at jersey school of law. he has written extensively on topics and prior to joining the faculty mason law school, he was an associate in the essence -- sec enforcement defense practice group in washington d.c.. he also served as a law clerk for vice chancellor john noble of the delaware court of chancellery. our final result -- witness is richard ferlauto at the american federation of state county and municipal employees where he is responsible for representing public employee interest and public retirement and benefit systems. mr. ferlauto is also the chairman of shareholder

the 65% of the assets are held by 25 banks these are the giant banks and jpmorgan, wells fargo, wachovia, go down the list. on the other hand, there are 7,000 banks that hold the rest of the assets that works out to be about 35% most are small, local, regional banks they're not giant chains of 5,000 but they have maybe 5410 branches and make loans to people who can afford to pay them back. that is a crazy concept but they are rated aa or aaa they are solvent, they have money put away very little of losses they run banks the way they should be run. but for whatever reason they figured out small and comfortable and closely watched makes money as opposed to citigroup so citigroup requested glass-steagall to be repealed they forced it they did the repeal before it was final and legal if forced the government to approve the merger it was done at their request and they promptly proceeded to blow themselves up. to big companies that were very involved with derivatives one had a free hand of train derivatives from the exchanger from the government they cut out a deal with bonnie and clyde. to pe

let's think about enron, tacio, arthur andersen, general motors, chrysler, ford, merrill lynch, wachoviaexxon, and of the valdez fiasco, lehman brothers, washington mutual, countrywide financial, and so on. do we not ever consider? we talk about the inefficiency of the government and our enormous deficits. as of october last year our country had commended itself to something like $7.70 trillion with all the bailouts. >> if you could wrap it up because we have a lot of folks behind you. >> do we not ever consider -- yes, there is waste and fraud in government. but we need to give a lot more attention to the waste and fraud in business and the burden it places on society. [applause] >> thank you. scott, i share your concern about waste, fraud, and abuse wherever it is. the fact is i am elected to represent you in washington and overseas. your taxpayer overseas so, it is not my business to be in your business. [applause] look, i voted against all those bailouts. i thought it was the wrong direction. [applause] but when companies succeed or fail it affects those people who are making decisio

witnessed fannie and freddie, wachovia, blogger, bank of america and the list goes on.ally, with respect to aig, we had their chief regulator here on march 18, 2009. and the regulator said you know what, we had the resources that we had expertise. we had the authority. we just simply missed it. sometimes regulators get it wrong. the ultimate goal here should be not to designate certain firms as systemically risky so that we have more taking timebombs like fannie and freddie throughout the economy that will ultimately blowup on the american taxpayer. but we don't necessarily need -- we need more regulation, smarter regulation which will help the consumer and with that, mr. chairman, i yield back the balance of my time. >> that you very much, mr. hensarling. now we'll have a panel. that panel is made up of eight members. that is why we try to do some of our presentations by members, and appearing before the subcommittee today, each of the panelists will be allotted five minutes. and without objection, their written statements will be made part of the record. first on the