wolin?>> i think they do have a broad set of regulatory authorities to act in circumstances leading safety and soundness is at risk. our proposals suggest those authorities ought to be clarified and strengthened but in these three areas, we believe it shouldn't be left up to the discretion of the regulator. that if you're going to get the benefit of the safety net banks and banking firms enjoy, you shouldn't be allowed to do these three activities which are risky and would get the subsidized benefit in effect of that access to the safety net. we think it's important for the regulators to have stronger authorities to act in a discretionary way to make sure when they see something in the firm that brought they can take appropriate action but this ought to be hard wired in our view. >> what are the benefits of restrictions activities on the wholesale basis instead of restrictions on the firm by a firm basis? >> i think we want some consistency over the industry. that is all i can say about that

thank you. >> secretary wolin? >> members of this committee, thank you for the opportunity to testify before this committee today about financial reform. and in particular about the administration's recent proposals to probate certain risky financial activities at banking firms and to prevent excessive concentration in the financial sector. the recent proposals complement the much broader set of reforms proposed by the administration in june passed by the house in december and currently under active consideration by this committee. we have worked closely with you and with your staffs over the past year and we look forward to working with you to incorporate these additional proposals into comprehensive legislation. the goals of financial reform are simple. to make the markets for consumers and investors fair and efficient. to lay the foundation for a safer, more stable financial system less prone to panic and crisis. to safeguard american taxpayers from bearing the risks that ought to be bourne by shareholders and c

wolin? >> i think the fed and regulators to have a broad set of regulatory authorities to act in circumstances where the thing safety and soundness is at risk. our proposal suggest those authorities ought to be clarified and strengthen but in these three areas, we believe that it shouldn't be left up to the discretion of the regulator, that if you are going to get the benefit of the safety net that banks and banking firms enjoy you shouldn't be allowed to do these three activities which are riskier and would get the subsidized benefit and effect of that access to the safety net. so we think it is important for the regulators to have even stronger authorities to act in discretionary way to make sure that when they see something in a firm or that is broader, that they can take appropriate action, but this ought to be hardwired in our view. >> what are the benefits of restrictions of activities on a wholesale basis instead of restrictions on a firm by a firm basis? >> i think you would want som

wolin, your offer to continue to help on this. will now continue very quickly. the meeting will stand adjourned. >> thank you very much. >> thank you. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> special representative to afghanistan and pakistan richard richard holbrooke yesterday condemned an attack in pakistan that killed three is u.s. military employees. he was joined by agriculture secretary, tom vilsack, at a briefing on agriculture assistance programs in pakistan. this is a half hour. >> now we know who the intrepid journalists are that get up at 9:45 a.m., an unheard of our in this unique profession. good morning and welcome to the department of state. we had promised last month when secretary of agriculture tom vilsack visited with you prior to his trip to afghanistan that we would bring him back to report on what he has seen and the progress in developing -- redeveloping the agriculture sector of afghanistan as a critical part of the ministrations strategy, and president karzai strategy, for

my colleague, neal wolin, is testifying later and he will have a chance to talk through some of the complications right. >> even he is saying it's going to be difficult speculative struggle recognized the reality that it is difficult, but that is why reform is so important that the objective we're trying to do is to make sure we have clear constraints on risk-taking by these large institutions so they don't bring us to the edge of collapse again. part of that is making sure they are holding enough capital against those risk, but part involves tougher constraints and what they can do. but we have to design those anyway that are sensible, and careful, and recognize the reality in the ways to run. >> i think you know i support them or clean clean approach. thank you, mr. chairman. >> thank you, senator. thank you, secretary geithner. clearly we have a huge challenge ahead of us. and i think you can tell this debate wants to work with you. it's a two-way street. no surprises, but tell us what you're working on and let us know because we want to help, both stimulate the economy, get those jobs. i also

prior to that, the deputy secretary wolin was of the hartford financial service grant served in variousns for the clinton administration. very impressive records by both of you. chairman volcker again, welcome once again you've been before this committee on complications over the many years of the past 30 years and we welcome you here once again. you've got to turn that microphone on the. >> it may be a familiar location but i forget to push the buttons. i do appreciate this unusual scheduling of the hearing but i did have a conflict coincidently with the british parliamentary committee considering financial reform in britain, it will touch both sides of the atlantic today with your rescheduling and i appreciate that. let me say to make a very simple statement because i think there is some confusion. a lot of this issue we are talking about today evolves around proprietary trading and some people say this a big risk and a small risk what ever. it certainly is a risk. everything the banks do is a risk. this is not a question in my mind of what is there greater risk. it is the question of