Transcripts For CSPAN Key Capitol Hill Hearings 20240622

Displaying good faith, honoring commitments, and adopting the right approach, then diplomacy can prevail over violence, suffering, and oppression. This will provide a Solid Foundation for further and more effective diplomatic interactions. Before i conclude, let me thank those ambassadors who supported the jcpoa and also those countries who helped this deal happen. Let me respond to some baseless accusations by some members, some previous speakers. It is ironic that the distinguished ambassador of United States accused of my country of harboring a hostage. Reckless acts of the United States in our region for so many years are at the root of so many challenges we are now facing in our neighborhood. Iran is a stable country in an unstable region. We want our stability to persist. We do promote a stability in the region and we help our neighbors to stabilize and cooperate towards that. In conclusion, let me also inform you that my delegation upon instruction from a government is forwarding the statement of the Islamic Republic of iran following the actions today by the Security Council to be circulated as a document of the Security Council. Thank you. I thank the representative of the Islamic Republic of iran. I now give the floor to mr. Thomas. Thank you. The high representative of the European Union has asked me to convey the following message to the United Nations Security Council. The agreement reached in vienna on the 14th of july 2015 between iran and china, france, germany, russia, the united kingdom, the united dates of america, with the support of the high representative of the union for Foreign Security policy, and a joint conference of plan of action is historic in nature. The agreement once implemented marks a conclusion to the longrunning diplomatic efforts to reach a comprehensive longlasting, and peaceful solution to the Iranian Nuclear issue. One that will provide the necessary assurances on the exclusively peaceful nature of Irans Nuclear program on the one hand, and the list lifting of sanctions on the other. As such, it represents a significant achievement and a tribute to the merits of patient diplomacy from all sides. It is appropriate that this deal was struck in vienna, where all this began 12 years ago when the International Atomic Energy Agency started to look into possible iranian undeclared nuclear activities. Since then, there have been many months and years of at times difficult negotiations. A key milestone in that process was the interim geneva agreement in 2013, the smooth implementation of which provided necessary time and space for the conflict negotiation process which followed. This resulted in the parameters being set for the final deal. The format was especially effective. We feel that the European Union in particular was able to play a crucial or facilitation role throughout the whole process. The European Union has been facilitator, moderator, and in the final stages, pen holder of the jcpoa text and its nexus. It is hard to imagine another actor who could have done this year it a key element this. A key element of success was maintaining the unity of the group. It is to the credit of all those who participated that we stayed committed to reaching a mutually beneficial deal. The fact that the selfimposed deadline was overrun several times bears witness of the shared view that a quality agreement was vastly superior to a quick one. The agreement is good, durable and very viable. Iran has agreed to make changes to its nuclear program. The International Atomic Energy Agency will have the access it needs to determine when iran has completed those actions and to detect any future violation of the agreement. Iran will receive sanction lifting and return. The jcpoa set out in detail what is required by all sides providing clarity to facilitate the implementation of the agreement. Together with a conclusion to be made by the International Atomic Energy Agency in that regard the full implementation by iran of its commitments under the jcpoa will contribute to Building Confidence in the exclusively peaceful nature of the Iranian Nuclear program. It will be necessary for all sides to work now towards implementing this joint comprehensive program of action. The Security Council resolution adopted today is a key element in this process. As agreed in vienna, the European Union will endorse the Security Council resolution in conclusions of the Foreign Affairs council which is in session as we are speaking. The European Union will also endorse the jcp oa and commits to abide by its terms and to follow the agreed implementation plan. In effect, the European Union acts actions will be carried out in accordance with the timeline and modalities specified in the jcpoa, and that as stipulated there, the determination of implementation of economic and financial sanctions would come into effect once the International Atomic Energy Agency has verified that iran has implemented all of its Nuclear Related commitments. For the time being, the provisions and the joint plan of action agreed in geneva in 2013 have been extended for a further six months to cover the period until the International Atomic Energy Agency has verified that iran has carried out its commitment. The high representative of the union for Foreign Affairs and Security Policy will continue her support and coordinating role during the entire Implementation Phase of the jcpoa. She hopes and expects that this positive development will open the door to a steady improvement in relations between the European Union, its member states, and iran, as well as improved iranian regional and international relations, and that it will constitute the basis of a more stable and secure region in the longer term. It is essential that this opportunity is seized by all. Thank you, mr. President. I thank you for your statement. I now give the floor to the representative of germany. The agreement reached in vienna and endorsed today by this council with resolution 2231 is an important and possibly historic step towards ending the decadelong conflict surrounding Irans Nuclear program. As such, it has the potential to ease concerns regarding peace and security in the region, and beyond. Allow me to briefly examine its significance from three different angles. Firstly, germany firmly believes that the agreement does in fact reduce the risk of a nuclear arms race. After long and demanding negotiations am a the e3 plus three and the eu have produced an incredible framework which will prevent iran from obtaining nuclear weapons. Iran has committed itself to comprehensive technical restrictions in an unprecedented transparent regime that will allow us to rule out any covert nuclear activities. The agreement is not merely built on trust or goodwill, we have established a unique and longterm set of confidence building measures. Everything we agreed on will be strict we monitored. A powerful snapback mechanism will provide an additional incentive. It will now be crucial to effectively implement the agreement. The International Atomic Energy Agency will have an Important Role in this regard. In exchange for the nuclear restrictions, iran will profit from early and comprehensive sanction relief. The resolution adopted today is a step in the right direction. Second, the agreement also offers ample political opportunities for iran. It reflects a fundamental choice by the iranian government. It is an expression of intent to be a constructive part of the international community. It is up to iran to deliver on this commitment. We express our hope that in fulfilling the agreement, iran will see this potential to bring about improvement in other fields as well, from Civil Liberties to human rights, and the accommodation of Regional Security concerns. Finally, we hope that the agreement reached in vienna will also have a positive effect on the relations between iran, the European Union, and its member states, and will improve irans regional and international relations. We also hope it will open the door to a more constructive Iranian Foreign policy and ultimately contribute to a more secure and stable region. Mr. President , the agreement reached in vienna on july 14 has proven that complex and longstanding conflict can be peacefully resolved if there is enough political will and courage. It is a victory for diplomacy and for the principles of the United Nations. Thank you mr. President. I thank the representative of germany for his statement. There are no more names inscribed on the list of speakers. The meeting is adjourned. John kerry will be on capitol hill for a hearing on the iran nuclear agreement. Hell be joined by ernest moneys and treasury secretary jack lew. We will have live coverage thursday at 10 00 a. M. Eastern on cspan3, cspan radio and cspan. Org. The white house spokesman was asked about Donald Trumps remarks, regarding the military service of senator john mccain. Here is what josh earnest said. Does donald trump oh john mccain an apology . In terms of suggesting he does not care about an apology for himself. He suggested somebody who is in the political arena, he is taken his own fair share of criticism. He says our veterans are the ones entitled to an apology. So you agree that trump should apologize to the veterans . I agree with senator mccain. With chop, you may recall that birth certificate question. What does the president make of the fact that in several polls donald trump is leading . I have not had an conversation with the president about this, but this will be a challenge for republican candidates. They will navigate their way through the process. Tuesday marks the fiveyear anniversary for the doddfrank being signed into law. We will hear from the bills authors, former senator chris dodd and barney frank. Remarks from jack lew. Later, nigerian president gives a speech at the u. S. Chamber of commerce. Its almost as if they were matter and antimatter. It breeds inequality. I will say that a third time. It is always to the right and almost always in the wrong. The makers Robert Gordon and Morgan Neville talk about the documentary, best of enemies on the 1968 debates between William Buckley and gord woodall and gore for doll vidal. Today there someone saying the numbers talking about hot topic number two. Whereas then, that was not the norm on tv at the time. I dont think these guys did not need that i dont think these guys needed that. He was a distinguished news man who was embarrassed by this. He was moderating, but he disappears for five or more minutes. Today you can have a moderator not jumping in every 30 seconds. Everybody at abc just stood back and let the fire burned. Sunday night at 8 00 eastern on cspan skua day. Next a conversation on the doddfrank. We will hear from the bills authors who talk about the passage of the legislation and its implementation. This is hosted by the group better markets. Good afternoon everyone, i would like to welcome everyone here today and to welcome the audience watching on cspan. Thank you for joining us. Id like to welcome antonio weiss, for joining us. And the many congressional and executive branch staffers, many of whom put in months of incredibly hard work into what we now call the dodd frank law including the former staff directors for both the Financial Services committees. I would also like to recognize someone who had Division Five years ago to see that financial reform is about making markets work for everyone. It was really about building a stronger Financial System that protects and promotes americas businesses, jobs savings, homes and retirements. He saw a need for an independent, nonpartisan professional organization dedicated to supporting and fighting for the Public Interest in the Financial Markets and the d. C. Policymaking process. That is mike masters who is joining us today. As you all know, tomorrow is the fifth anniversary of president obama signing the historic dodd frank wall street reform and Consumer Protection act into law. The most significant financial legislation since the Great Depression. We have a terrific program today and joining me senator chris. And former senator barney frank. A copy of that report is on every chair and is on of available on our website. Before i begin, let me start with a few quick housekeeping matters. First, the treasury secretary is delivering his address starting at 4 00. Once he is finished we ask that you stay in your seats. If you have not done so please turn your ringer off on your cell phone. And for those of you joining us in the audience, you will there are index cards on your chair. For those of you who would like to add chris dodd or barney frank, pass them to the ushers on either end of the studio. Lets get to the crash and the crosses crisis. Some might ask about talking on the fiveyear anniversary by talking about events from more than five years ago. To really understand where we need to go, we have to first look back to how we got here. This is all the more important because in the last five years the discussion has dramatically shifted. From the financial collapse, the economic crisis, the cost to the country in the industry role in causing it all, to the financial reform law the rules necessary to implement it, and the claim from that. The way some people talk in this town, it would be news to them to learn that the world did not start five years ago when the lot was signed. You see it every day. Financial reform failed to mention why the law was passed. Without this critical context it is impossible to understand what the laws trying to prevent from happening again and why it is so important. None of that is to suggest the law is perfect. The people in this room know better than almost anybody that no law is perfect. It is the best law that our political system could produce at that time. As the facts of the economic crisis show, it is very important. Lets start with the basic facts. The financial crash of 2008 was the worst crash since the great crash of 1929. It caused the worst economy since the Great Depression of the 1980s. That is why it has been named the great recession. That crash and the economic catastrophe are ultimately going to cost the people of the United States more than 20 trillion in lost gross to mystic product and massive human suffering. That is what is detailed in the report we are releasing today. The top line number is 20 trillion and counting. This report goes through chapter and verse what it costs this country. We hope you take the time to look at it. That is why, five years ago president obama signed the dodd frank law. Lets take a quick look back to review the crisis and the cost. Almost seven years ago it began spiraling downward. When lehman collapsed on september 15, 2008, it ignited a series of almost unimaginable events that hope you had the chance to see on the way in. This being the museum, i thought it would be appropriate to review that story through the headlines that announced it to the world as it developed. This is monday, september 15. The papers did not know it but lehman had filed for bankruptcy that night. Crisis on wall street as lehman totters, merrill seeks buyer aig hunts for cash. The next headline, u. S. To take over aig and 85 billion bailout Central Banks inject cash as credit tries up. Just one day after. Mounting fears shake World Markets as banking giants rush to raise capital. In the lower righthand corner, already the worlds worst crisis since the 1930s with no end in sight. An email from the recent aig trial shows that friday, february 19, the internal Federal Reserve bank email i will read it to you Morgan Stanley called bigger fed president tim geithner late last night and indicated they cannot open on monday. Morgan stanley advised Goldman Sachs of this and Goldman Sachs is now panicked because they feel if Morgan Stanley does not open then Goldman Sachs is toast. That is four days after the bankruptcy filing of lehman. It is easy to forget how things were spiraling out of control. If anybody asked one week before that one week later neither Morgan Stanley or Goldman Sachs could not open their doors, no one would believe you. The markets were in disarray, lending locked up, the dow is crashing every day. Investors run to safety. The u. S. Drafts sweeping plans to address the crisis. In this headline, i dont know if you notice the picture, that is president george w. Bush. If you read much, you would not know the crash happened while he was president or that tarp happened while he was president or many of the bailouts. Many are surprised to learn that president obama had not even been elected yet. That is what i say when you need a little context and history. Things, of course, kept getting worse. We had a money or get mutual fund that broke the buck. I think the country was around 237 years at that time, the first action such first time such action had ever been taken. As the email from the prior friday, in the phone call from fred fed president tim geithner Goldman Sachs and Morgan Stanley scrapped the wall street model and became banks to ride out the crisis. If you said that was going to happen one week before, nobody would have believed it. And it did. Unimaginable, catastrophic events were happening as the Financial System spiraled into a crash. Wells fargo, eyes wachovia, crisis hits european banks. Treasury in congress sign off on bailout package. Citing grave financial threats officials ready massive bailout package. Hopefully get insight from chris dodd and barney frank about some of these events and meetings. The bailout plan as you will remember was rejected by the house. What happens is that the markets crash. The policymakers and government officials plunge to the of this with no one really knowing what happens next. Tarp was ultimately passed 7 billion. Another part of the discussion between then and now its talked about as being the only part of the bailout and we know that is not true. Using the tarp money, United States but stakes in the nations largest banks. Who would predict that . No one. When we are thinking about what doc frank was responding to dodd frank was responding to, or not just the occurrence of what happened but the occurrence of equally unimaginable events that today no one would foresee. The 700 billion dollar tarp bailout was just a small part of the trillions in bailouts. The Federal Reserve board, treasury and fdic guaranteed lent or otherwise used many trillions of dollars more in bailouts and rescue programs. This is just one policy that has been in effect since the crisis. The feds Balance Sheet ballooned to more than 4 trillion. The crash continued deep into 2009, as did the economic crisis. People often think that the crisis essentially peaked when lehman collapsed but well into 2009, the crisis continued as did the financial collapse. This is one indicator of the economic crisis. That is the dow. We now know with hindsight that march ninth of 2009 was the low. At the time, nobody knew that was the low and we looked at the trajectory you had good reason to wonder where the bottom was. One of the most Important Documents may be in the history of the country is a joint statement of february 23, 2009 issued by the treasury, the fdic , the occ and the Federal Reserve. The government will ensure that the banks have the capital and liquidity they need to provide credit us as harry to restore economic growth. Moreover we reiterate our determination to preserve the viability of systemically Important Financial Institution so they are able to meet their commitments. This is pretty deep into 2009 and the financial crisis is still so bad that this statement was issued effectively putting the full faith and Credit Credit of the United States behind the Financial System. Putting the wallets of all taxpayers in the United States behind the Financial System. That is what happened and that is what was at stake at the time. There were enormous human social and government costs. This chart is the u six rate, month by unemployed is a wellknown concept. Underemployed means you are forced to work parttime because you cannot find fulltime work. It exceeded 17 in october 2009, and remained above 17 for five of the next seven months. Even when it got a little below 17 , you can still see it remains incredibly high month after month. What is 17. 6 or 17. 5 . To put it into perspective, it equals the entire population of the state of texas one out of every six workers in the United States. It compounds month after month. That is only to people who are getting unemployment or are unemployed. Many are the heads of household. The implication of this part of the crisis affected many tens of millions of americans well into the 50 and 60 million. 27 million americans directly affected, so the Ripple Effect into 50 or 60 million americans just from employment. Housing prices collapsed back into thousand one levels relatively quickly. Historic foreclosures were out of control, millions and millions of foreclosures. Small businesses were crushed. As Economic Activity plummeted one of the frontline organizations started going bankrupt at historic rates due to the complete lapse of Economic Activity. Underwater homes, the silent crisis, when over 30 . The mortgages were much higher than the value that the homes could be sold for in the markets as prices collapsed. Even through today, there are still waiting money way too many underwater homes. There are tens of millions of americans and families behind the numbers. This is just one picture you can take in 2008, 2009, 2010, of the lines at job fairs. This is atlanta. This is children at the become Elementary School in southern florida in october 2011. At that time, every weekday more than 200,000 hungry students were getting free or reduced lunches because they could not afford them, often almost always because of unemployment and foreclosures and homelessness. At the time in that county, the economy was so bad that seven out of 10 students were eligible for those lunches. This is one of the most telling photos. The Ripple Effect at the state and local level from the collapse of the economy and financial crisis. This is fellow firefighters applauding a fiveyear veteran who is telling them to keep up their hopes as they prepared to turn in their gear after being laid off. Camden laid off one third of its firefighters. That act was repeated, with firefighters, cops teachers, and a lot of other state, local and Municipal Workers because of the collapse in tax revenue and diversion of resources to mitigate economic effects of the financial crisis. Here is a man who is unemployed applying for food stamps in february 2011. Food stamps skyrocket in 2011 two being used by 43. 6 millions of americans. That should surprise no one when you look at the unemployment numbers and foreclosure numbers and underwater home numbers. This woman in 2010, pose an unemployment check from burbank, california. She was laid off from a Quality Assurance job where she was making 100,000 a year. This is from her. It really gets me when they say you lazy people. They have no idea how depressing that is when you have been beating your head against the wall trying to find work. That was the economy facing tens of millions of americans. With tax revenues plummeting and social needs skyrocketing, government deficits and debt owned a ballooned. If you can see, it believes starting in 2008 in 2009 and 2010. That is because tax revenues evaporated and Economic Activity dropped and social needs skyrocketed here it this is a very telling chart. This is the u. S. Debt as a percentage of u. S. Gross domestic product. In january 2008, the cbo projected the percentage of gdp as that at 22. 6 . As be debt. Good skyrocketed to 73 . One thing and one thing only happened between those two projections and that was the financial crash, and the economic crisis is caused it caused. This is a chart that shows you real tax revenue is still lower in the Second Quarter of 2014, in 29 states since the recession. Not only did it go down in all 50 states, at the time of the recession and years afterwards, deep into last year, real revenues are still down. It is interesting, the same thing has happened in the private charitable sector. Nobody talks about this. Charitable contributions declined. Charities were asked to provide more services with less support. The exact same problems that squeezed federal, state and local governments squeezed charitable sector too. The giving declined the worst in 50 years. No surprise, the shock was the worst since the great cat crash of 29 and the Great Depression of the 1930s. You would think you would have roughly similar declines in other activity including charitable giving. So public finances are tremendously stressed. Deficits and debt drive decisionmaking. Large endowment losses and contributions decline. Virtually every issue anyone cares about is suffering due to trillions of dollars expended, were used to stop the crash and mitigate the damage. This is just one example. Federal financing for ir d rnd leverages the rnd in the private sector. In 2009 through 2014 it dropped to a calamitous 26. 7 . That is not the only area. Almost everything has suffered from cuts and underfunding, from education, poverty arts science, housing, the environment, energy hear it you name it. Every one of those issues has seen cuts since the 2008 financial crash in both the public and private funding side. Many of those cuts have been very significant. Even a future funding increases as future funding increases it will never make up for the lost jobs, homes, rnd that wasnt done and lost lives and lost dreams. Let me conclude by mentioning just one other cost, which is never mentioned. That is the exploitation of financial reform for political and partisan gain. Given the devastating cost of the crash and the crisis conflicted inflicted on tens of millions of americans families workers and businesses, preventing such a catastrophe should not be a political or partisan issue. After all, the economic wreckage and the cost knows no party affiliation. The economic calamity caused by the financial crash did everyone regardless of political affiliation. This chart shows by state, the average rate for a year from the Fourth Quarter of 2009 2 the Fourth Quarter of 2010. It is broken down by red state and blue state. It shows the economic wreckage from the financial crash, really does not care whether you are republican or democrat or independent, east coast west coast or middle of the country. The economic wreckage inflicted massive damage in every part of the country. That is why it shouldnt be a political issue or partisan issue. The wreckage w not political. Athe financial crash was what made financial reform and doddfrank so essential. Preventing that from happening again is what financial reform is really all about. It is not about numbers and statistics. It is about protecting americans jobs businesses, homes savings, retirement and standard of living. It is also about making sure that public funds are never again diverted from social priorities to bailout reckless financial activities. And that is also why the dodd frank financial reform law must be fully implemented and aggressively policed. As soon as possible, as strongly as possible, and as thoroughly as possible. That is in summary, the cost of the crisis and a review of the crash, which is the essential context one needs to understand the doddfrank law, to talk about the law on an informed basis. With that as background , i dont know if our next guests are going to come through the door but if they do, we will be introducing them. If they dont, plan b will be coming in a moment. Anybody have a drumroll . Excuse me. Join me in welcoming senator chris dodd. [applause] former congressman barney frank. [applause] and our moderator ylan mui. Very quick introductions. Ylan mui all right. Leverages me do some very quick introductions, not that they need much. Senator chris dodd, after serving six years in the house of representatives served 30 years from connecticut from 1981 through two thousand 11. He is the longestserving senator in that state. I think it is fair to say he was in every Major National policy debate. Capping off that long career was his work in the hundred 11th congress in 2009 and 2010. During those two momentous years, center dot led the fight for two hispanic historic pieces of legislation. First the Affordable Care act after senator ted kennedy fell ill and passed away in august 2009. Senator dodd picked up the legislation and carried it to the end, and it is quite a remarkable a congressman. Thats not enough. He is chairman of the Center Banking committee, led the fight for financial reform and got the legislation done on the senate side. Congressman barney frank served for 32 years in the house of representatives. For the fourth Congressional District in the commonwealth of massachusetts. He also has been at the center of nearly every Major National policy debate for those 32 years. From 2003 on, he was the leading democrat on the House Financial Committee and served as chairman from 20072011 where he shepherded financial reform into law. There is a lot i can say about barney but what i really want to say is, you have to read his book. [laughter] i want to say this. Dont just read the book. Read the two appendices. If you care about the issues we are talking about today there is that and much more in his book. It is terrific. He did not ask me to do that but i couldnt resist. Ylan has spent more than a decade at there are certain post the washington post. Among many of the topics, she has covered the financial crash and crisis as well as its cost for some time. She has done reporting on the longterm unemployment benefit cuts and what to do so Many American families, as well as terrific reporting on the metastasizing devastation from the subprime mortgage in motion implosion. Terrific reporter, we are lucky to have her. Ylan mui thank you very much for that introduction. And thank you for joining us. I would like to start about, and get your take on five years after the law that there is your names has been passed. Where do you guys think it has been most effective ensuring the Financial System is safer, and where do you feel it has fallen short . In five minutes or less. One of the things i appreciate is to remind people i often say, we are both blessed and burdened with no memory. That has been an asset in many cases but obviously a burden in this case. Its important to go back and remember exactly where we were at the end or middle of this crisis when we were losing 750,000 jobs per month. Over that time, 10 million jobs were lost. 5 million homes. The numbers vary between 13 and 20 trillion in National Wealth evaporated. We are still seeing the effects to the state. Institutions, credit unions, Insurance Companies commercial banks that has been around for decades are gone. All of that happened. And yet today it is hard to remind yourselves what actually occurred. How devastating this was. If you ask me what has changed a lot. Obviously the economy is doing tremendously better. 64 months of continuing job growth. We have reduced the gdp debt. Leverage is better. Liquid assets exist to almost too much today. Transparency in the Derivatives Market has been a major achievement. The industry went from 90 billion to 600 trillion in the matter of a decade or so. We have made sure to a large extent that you cannot have taxpayers they allowed failed institute a bailout failed institutions. And for the first time in the history of the country, the radical idea that there ought to be something called a Consumer Financial Protection Bureau. I just left celebrating with the staff over there this afternoon. Incredible work that organization has done in four years. 17 Million People have had over 10 billion of their money returned to them. 650,000 consumer complaints have been handled by the agency in four years. In the past, we had passed separate pieces of legislation to deal with consumer issues. Today it is a onestop shop. When people say what has happened, it has been phenomenal. Not all of this happened exactly because of our legislation emma but without it would have been very difficult to talk about the economic recovery. Rep. Frank a couple of specifics. But i do have to say, im older than chris but im not senior in service because he had six years in the house. He has 36 years to my 32. Senator dodd 68 years together. Rep. Frank we were just looking at a picture of lakhdar Cronkite Walter cronkite and looking at how young he looked. [laughter] but we have accomplished i think, it is hard to look at specifics because much of what we did was to avert trouble. There were two things that were curiously problematic. First of all the number of bad loans being made today, actually im glad dennis mentioned the appendices in my book. There was a myth among liberal democrats who fought that homes while republicans were trying to stop it. It was the opposite. In 2004 for example, brad miller cosponsored legislation to ban the subprime loans because some states tragic event and the Bush Administration preempted the states from doing it. The Republican Leadership ordered that the bill died. But you do not have the kind of toxic loans being made, which is good for the system and individuals. Secondly aig was one of the precipitants of the crisis. I thought that was an odd opinion. Aig feeling the federal government suing the federal government, the best description is an arsonist suing the Fire Department for water damage. There were selling credit, not only without the ability to pay off if necessary but without any idea with how much they told. First they told the fed it was 85 billion in the hole. Than 170 billion. It wound up being 185 billion. Nobody could go out there and inter incurred that kind of derivatives without having the ability to pay for it. Second point is that we have seen a confounding of the negatives that we got from the left and the right. People on the left who said this bill will do anything some of them are not happy unless they are unhappy. First they complained the bill was not strong. Then they complained that theyll do not have teeth. Then they said the regulators had pulled its teeth. They were wrong on both accounts. The biggest mistake on the right when they predicted all these economic disasters. It has not stopped the banks from doing what they are doing. We did not in that bill, then anything except lending money to people for their homes who couldnt possibly pay it back. What we did say was Financial Institutions under that bill could take any risk they wanted to take, but they have to be prepared to stand behind the risk and take losses. And i think that was that is the essential fact. My biggest disappointed disappointment, to get double through. We had tension in the securitization business was the most important thing we can do. In the market area. To get the bill through, we had to create what i thought was going to be a small category where some very solid Mortgage Loans could be exempt. And then people talk about do the banks weaken the bill . Will the biggest weakening was essentially to take the loophole and make the loophole keep the rules so you have no Risk Retention for Residential Mortgages. You have it in other parts of the economy. Fortunately, they did not make that permanent. And i hope we wont get into this problem again. But the exemption and i know the argument was, we hav in america before 1980, there were no mortgages. Because we did not have securitization. You had Risk Retention. That is my single biggest disappointment. Ylan mui you mentioned the economic recovery and a strength of the economy as one sign that financial reform is working. Some people might say that the economic recovering has persisted despite the massive amount of regulation that doddfrank precipitated. 25 billion is the number being thrown around. Ok, 25 billion [laughter] and representative jeb pensively said has doddfrank never left, the Financial System would be more secure. Many are primarily the result of the law itself. Has doddfrank made the system more unstable . Rep. Frank of course not. Does anyone want to go back to the fall of 2008 . Senator dodd to stabilize Financial Institutions look what is happening in europe. Taxpayers and citizens being pitted against each other. We have not exculpated lending expectations institutions. We now prohibit it is banned under the legislation to go back and ask the american taxpayer to do what we did in the fall of 2008. Leverage is in so much better shape. Stabilizing institutions. They have already dealt with a number of institutions pitting mutual funds and so forth, dealing with nonbank Financial Institutions. Looking over the horizon to make sure they are not product lines are institutions that could cause difficulty. We now have the ability to spot crises early enough to coordinate two conduct quarter nation that did not exist in the past. We think it is going to work and we gave the responsibility to the fdic that has the history and record of how to do that. All of those major issues, it did not exist, today clearly we are in far better shape than we were. The reason, of all the economies around the world the one that is doing the best and most stable is ours. It was not a miracle, it was because of hardware. That we put in place that allowed us to achieve that. Ylan mui but what about the unintended consequences like market liquidity . Rep. Frank before i do come in one aspect. I was amazed to read i wish i had his ability to say ridiculous things and be unfazed by the potential reaction. [laughter] he complained that nothing has been done since the bill passed about fannie mae and freddie mac. The mans party has been in control of the house of representatives ever since. He is chairman of the committee that has jurisdiction over fannie mae and freddie mac here it. The republicans controlled the congress and did nothing about fannie mae and freddie mac. In 2007, when we had control, we passed legislation that put them into conservatorship to turn things around. We would have, if we could take control, worked on in 2011. Republicans have been in control of the congress and the house for five years. They had t they have done nothing about it. As far as unintended consequences, there is one case where they say there was a shortage of liquidity. I have seen no evidence that this was going by anything we did that required people to have cattle quote capital. In the first place, it was an effect that was still with. It had no negative longterm consequences. When you are in a transition there will be some things to work out. People are getting used to this. But i do not believe that the requirements for hired capital it is, we have to learn to live with it. Paul is the one who said, the notion that liquidity is the single most important thing to look for in our Financial System, and everything should give way before liquidity, is when you get into trouble. Risk retention means less liquidity. Anything you do to safeguard the system and diminished liquidity have unintended consequences. The biggest one talked about is the suppose it problem for Community Banks. I asked people when i meet with them, what it is in the bill specifically that they have problems with. I do not get answers. To the extent that the bill treats different sized banks differently is in favor of the Community Banks. They are not examined independently by the cfp be. The increase in deposit insurance maximums was done at their their request to diminish the competitiveness. I think what the opponents of the bill has done is very clever. They have done a beat and switch best bait and switch. They talk about the Hurt Community banks, but when they get the chance to legislate, they help big banks. The one case monday used to legislative clout by holding the appropriations hostage, they amended the lot regarding pushups. I dont know many 3 billion banks that have to worry about facing a requirement to set up subsidiaries. I think that is clear. You look at a major proposal, so they talk about the Community Banks but they help the big ones. Senator dodd going back to your point of the fannie mae and freddie mac issue. The republican colleague and i wrote the tarp legislation. We had a lot of cooperation. I recall him saying on the floor of the senate when the bill came up for consideration, it was not the lack of trying, we just could not come up with an answer that would be satisfactory. Which is a separate issue that needs to be done with. Barneys point, this tale lagging dog that was the problem. Secondly unintended consequences, that is not a reason to not legislate. There will always be unintended consequences potentially. They will probably be things down the road you will want to change and modify. Theres nothing radical about that idea. There will be unintended consequences, i presume. You dont sit around and do nothing. If that was the case you would never legislate. Rep. Frank one other point. The criticism that we did not and too big to fail, i think we clearly have done. Some institutions are clearly in that category. Other institutions are subject to the discretionary judgment of the at they are fighting against this notion that they are in this category. Midsize banks tried to push of the 50 billion so they will not be covered. The more credible criticism comes from tim geithner, namely that we made it too hard for the fed to a lot banks. I havedisagree. Given what we have been through if that is the case but will have to persuade congress. There is the notion we will give the unilateral right to do that. History is history. There was one allegation that the bill contributed to a temporary problem with liquidity. They got the buy side and sell side incentives mix up in that. That is the one thing in five years they allege was damaging and it lasted a couple hours. You had called that a frightening precedent. There had been 139 bills to repeal. Frank or to reform or change the law. I am curious to see where do you guys how durable is this law . Mr. Frank getting that on its merits the fear was the republicans would put a short term appropriations bill through and that would have damaged the economy. America, this is what it is about. This is how they can manipulate derivatives. That was a huge hole in the bill. It was the president. They have talked about repeal but compare obamacare to financial reform. They have had 50 or 60 votes on repealing the bill. There have been no recalls. I have not seen that many bills to repeal the whole thing. The only thing i sign 2011 to repeal the whole thing came from michelle walkman michele b achman who is not in the leadership delegation. They are afraid of it. They know it is popular. That is why they make the big arguments about the Community Banks. The danger is if a republican was elected president , they will be afraid in terms of voting for it. They will point to the regulators they appointed previously. I know this sounds quaint to say this today, we happen to be very good friends and richard has introduced legislation but if you look at it carefully there is very little dodd frank. Nothing on the Consumer Protection bureau. Just as there is this chatter about undermining it, there are some things that go back to your earlier question. I regret we did not have so funding. What has killed our efforts in the past, we did do this so funding of the Consumer Financial Protection Bureau which i think was smart. That is a source of contention. You cannot strangle an agency by depriving funding. The thing i worry about to some extent, the Health Care Bill has some financial interests that care about the bill. The insurance industry, the pharmaceutical industry. They will be reluctant to have any major changes. This does not have large financial interests in favor. Theyre making changes way ahead of the regulators. The culture has changed dramatically. We were talking about a bank that he works with and he said i cannot believe the number of risk committees i attend. Where institutions are sitting around thinking about product lines or other decisions theyre making and are their implications, risk implications question mark that did not happen before. There is nothing in our bill requiring that. It gives you some sense of how the culture has changed. Many institutions are way ahead of the regulators and in implementing the ideas that the legislation requires. I am optimistic about what is occurring in the marketplace. I am were it because we do not have major financial interests that will defend our product. I agree with that. You have reality is reality. If a democrat, if Hillary Clinton is elected president and 2016, the bill will survive even if there were people even if there will be vetoes. By the year 2020, these practices will be embedded. You look at the rhetoric of the late 1930s and 1940s. The securities and exchange act they were predicted by the cash to be terrible. They got used to it. By the year 2020 after 10 years this bill will take root. It is not quite to be in their interest to introduce all this instability. My major fear is it will get under it ministered but i do not think many will go back. To some extent, we have diminished but we have diminished is there ability to be self motivating. We have diminished the ability of the Financial Community as opposed to being the financial intermediary. The role is to facilitate real Economic Activity. It is clear that with the inventions of the 1980s and 1990s and the new entity outside the banking system, the major justification is the profit it would make for the institutions rather than some function it served for the economy. When people talk about reductions, i think that is a good thing. Senator dodd that is a rose around 8 at the height for the crisis broke. There was a massive increase. Host we heard dennis talk about the importance of context instead of remembering how bad things got during the crisis became in 2008. Can you take a trip down memory lane, when did you realize the depth, was it during that meeting with her 90 or was it before then . Senator dodd i have been stunned. Hank paulson they had hearings on the mortgage crisis. When they were in the majority in the Senate Banking committee. The subcommittee. When i took over in january for the first time of 20 2007, we had almost 90 hearings are gathering on the mortgage crisis growing. It was hard to get them to show up. Hank olson showed up to talk about china. They had bear stearns over st. Patricks day. That was an isolated case. This thing was cratering as we were talking. It was the crisis again long before that. And the refusal to recognize what was occurring and all the evidence was out there. It was going to be a big deal anyway but it could have been a lot less of a big deal had we acted early to stop them metastasizing in the Residential Mortgage market. And then it goes up six months later to the day with aig and lehman brothers. We had the meeting where ben bernanke said, unless you act speaking to the 15 or so of us in the room them you act within a matter of days, the entire Financial System of this country and a good part of the world will melt down. That is from the most important central banker in the world telling the leaders of congress. It took us two weeks to do it, to write the tarp legislation and then you had people who lost their seats. It was only the most single unpopular thing we did in congress and probably the most necessary. But clearly this process began a lot earlier than the fall of 28 2008. Rep. Frank mortgages given to people who should not have gotten them was at the core of this. The mortgages were given and then they were and the and the mortgages were the bullets and they came up with these guns that shot them all of the system. It started with the mortgages and then they securitized those into packages. The key was the bad mortgages. There was this myth that day they wanted to give all this housing to four people. They passed the homeowners equity section act which gave the Federal Reserve the power to regulate mortgages. Alan greenspan explicitly refuse to use it. In one of my favorite quotes in 2007 before became obvious was happening, he said in his book economics and the age of turbulence, it is true that these mortgages carry a high risk of nonrepayment but it is worth taking you cannot have a capitalist Society Without strong publics work for Property Rights in this creates support for Property Rights. He refuses to do it. A group of states start to act. Georgia was one, new jersey and they start to act, North Carolina at an act to regulate mortgage practices. The Bush Administration response in 2004 i a blanket [indiscernible] the only thing the state could do was enforce the fire code. And say they are not discriminate on racial grounds. Total blanket preemption. We did a lot of good stuff, we ended that and we restored the right of the states to do not as much as before but a significant amount of regulation. That is the second effort to do with subprime mortgages. It is the state and the Bush Administration preempted. At that point, brad miller and mel watt tried to draft a bill. We began to work on the legislation. Tom delay tells mike oxley were not in the is this of regulating like that and he ordered oxley to tell bacchus to collapse the effort. Things die until 2007 when we take over. In november of 2007, you get the bill through under democratic control to regulate subprime mortgages. The wall street journal has an editorial, november 6, 2007, you can look it up like Casey Stengel used to say, keeping low income people, especially minorities from getting homes and says why this concern about this up prime move . 80 are paying on time. Like it was a good to testing. We did get the bill through the house. Chris runs into opposition from the conservatives in the senate. What we finally took that legislation we had worked on and it is art of the financial reform bill. That is the history. I did see that. What i did not see was how badly it would affect the rest of the system. I did hear from paulson and bernanke. They did, to their credit, it seems to me, come to us and say this is the problem. We have two choices if a big it goes bad create we can let it go bankrupt and dana and of the debts and have all kinds of problems or we can take it over in detail the debts area that is what played out in layman and aig. So we did see the subprime thing. I did not see the extent to which it would be so infectious for the economy. Host the first draft was much more radical than the bill that passed for you to have three agencies overseeing the entire financial them. Could you talk about your thinking at the time, why you decided to make such a bold statement with your draft legislation and some of the political realities that went in to the crafting of what became the bill . Center dot there are some stations that would like to revive the idea. But the idea would have a much larger constituency than it did then. Because at the end of this process, we wanted to get rid of a lot of the unnecessary [indiscernible] this was never some sweeping architecture. Every time there was some regulatory aday that got created over the last 80 or 90s 90 years. The idea was of creating one single regulator. You had a lot of regulatory arbitrage, aig being the classic example. That was the basic idea. We got three votes for it. People screaming what he murder about the soy moved on. To try and test out ideas and find where the tipping once our. We incorporated the idea that we will it is not an illegitimate relation. The idea was to create a system that would allow for that to occur. While it was called radical at the time today you might have different thoughts about it but that was the genesis of the idea. Rep. Frank it is tough to do a lot of things at once. We did very difficult politically hard complicated my head hurt. When i retired, i celebrated two things. It was november. I announced i was not going to march in the Christmas Parade and i began to sing in my own head because i have a terrible voice. My version of an old antiwar sore song. Aint gonna study driven if no more derivatives no more. There are political resistances. We barely got 60 votes in the senate. We came close to losing a couple of the key provisions in the house. This was never going to be possible to do them both. There were some specific ones. The fed became very controversial. There were people who would a furious if you give them more power and some if you gave them less power. The independent Community Bankers complained because part of what chris did was agree to have one credential regulator. The statechartered banks Smaller Banks do not want to share a regulator with a big banks. They were afraid of it was the same regulator it would be overwhelmed. That was put oh active life we did get rid of the office of fed supervision. That was the one case where there was clear duplication between the otc and [indiscernible] they would need a regulator or countrywide and a and anybody else who did not want to be regulated. I had a fallback. I wanted to change the name to the office of sick leave dispensation. That was the basic problem. We had a hard wonderful job in making the substantive changes. It was multiplied by trying to do the regulatory, and then you had the single biggest obstacle which is statechartered banks area that is one of the things complexity. We had the dual inking system. Most countries do not. That is the cause of a great deal of laxity of our system. You had to live with it. Post financial reform should not be hard of an issue areas however in the senate there were three republicans who voted for the dodd frank l. Can you talk about your efforts to garner republican support . Sen. Dodd the actual vote itself, you end up with the numbers you have cited. When evening in the follows 2009 or 2010. I asked all the members of the committee together in the Senate Foreign relations to many hearing room on the first floor of the capital. I did not tell my staff what i was going to do nor did i share what i was going to do with anybody else. I announced i was. To work on the legislation. I announced that mark warner and bob corker would work on too big to fail. Chuck schumer would be working with Michael Crapo on corporate Corporate Governance. I would be working with thick shell be. Deck shelby. I waited for someone to ask who the hell are you to tell us what to do but everyone liked the idea and they went off staff and peers. This is to back to take too big to take on. They made worthwhile contributions to the product you see today. They did not finish it in every case. They could not quite come to closure on the derivatives section. They contributed a lot to what is in the hill today. The idea was one i watched having sat on the labor many for 28 years with senator kennedy who was a master at this and our they would ask people to Work Together on things that were complicated. We took revisions of the bill. Dealing with the congo. Sam brownback. I took the day lugar dick fuld are legislation. And from provisions we incorporated. We made an effort to bring people in as you normally do in a process. If you take major provisions of theirs to add to the things, in many cases those people and of being supportive. No lack of trying. The bill reflects an awful lot of that contribution i described earlier. Rep. Frank i became Ranking Member in 2003 with mike oxley. I had a very Good Relationship with him. He had power i did not realize. Dick cheney wrote in his book, and 2003, the administration tried to get reform of fannie mae and freddie mac by but barney frank killed bill. I was not chairman of the committee, i did not become chairman until 2007. I realized i had been paid or great honor having dick cheney lie about what i was doing in 2003 kind of put me in the same category as weapons of mass destruction in iraq. It was an unusual distinction. We worked well with oxley. I had become chairman. We did try to the house did pass a bill on fannie and freddie in 2005. Bipartisan than the house. The Bush Administration thought it did not go far enough so it died in the senate. The Senate Republicans did not like what the House Republicans had done but we worked together on it. Then i become chairman and republicans decide in the house they are going in opposition. I mentioned the question of subprime loans. Spencer bachus had tried to work with us and was overruled. In 2007 when he is the Ranking Member of the full committee, he works with us and we did adopt in 2007 subprime restrictions which never did pass the senate but became part of the bill. That is the basic law. We were working with Spencer Bachus on the bill and he voted for the bill when it went to the floor of the house. As a result of his working with us and bringing some republicans along, the more conservative republicans who were dominant on that midi and were now running the committee, went to the house leadership and tried to get him dumped. This was reap reported in the hill and roll and politico. The price he paid was they sent minders over from the Republican Leadership to control him. There would be cases when a statement would come out i did not say that. He was penalized for working with us and he got the message. From then on, there was no cooperation. When president obama comes in, this is part of the problem, the republicans when bush was president there was some instinct on part of some of the republicans to help the administration. When obama is president there was no partisan reason to want to be working with the administration and no ideological reason. It was and never had a chance. There were some republicans on the Committee Interested in housing stuff but the word was out, they were going to be in opposition. The same it should not be partisan. I should not have to choose between being fat and being hungry. It is what it is. Sen. Dodd Susan Collins was incredibly helpful. By adding substance to the legislation. Olympia snowe and scott brown of massachusetts. Was a vote. Rep. Frank i develop a very strong relationship with round staff. We had [inaudible] he beat Bill Jefferson in his freezer. Then someone who voted for the senate bill to the lady who was not a witch. And people said, did you have one extra vote . They agreed they had to do it together. We get the three boats and i am finally relaxed and they get one of those phone calls i hate to get. Chris calls and says we got a problem. We paid for the bill by an assessment on Financial Institutions that had 50 billion more in assets. Cbo told us it was 20 billion. It would make more money outside. That is the cbo role. We had to come up with 20 billion dollars. We will assess the Financial Institutions. Three republicans that became too much so chris gets word from them that they cannot vote for the bill on the floor. Chris announced told me that we have been told that we cannot do it. We had finalized the conference, inc. The gavel, signed the bill. There are no rules for committees. No one had had one in a long time. Sen. Dodd. [indiscernible] rep. Frank i announced that the conference was reconvening. We entered the bill we had signed off on and took it out of extra tarp money. That was it. Sen. Dodd i forget which member of the republican side made a suggestion and i thought if we can live with that we will have an ability to get this as barney pointed out, there was objections he won his pay by an margin. That was the reason he left. Host thank you for coming here today. More now on the dodd frank financial regulations. We will hear from jack lew. This is hosted by the group for better markets. Hello. Sorry for the delay. We are honored to have secretary louew here. In his capacity, he is chairman of the Financial Stability oversight council. Before becoming treasury secretary, he served as the white house chief of staff. There are many high profile activities in the financial arena, at and before treasury i wanted to mention one thing he has fought for and has received no attention. That is hard to do when you have a high profile job. It is cftc funding. It is one of the most important jobs in protecting the American People. It is a small agency, consistently under attack and grossly underfunded. The budget is a little under 200 million in a budget of trillions of dollars. At omb sec. Lew has fought for increased funding. It tells you a lot about his priorities and his concerns when he is on the front lines fighting for an agency as important as the cftc. It is one thing that does not get headlines, but it is very important. We are lucky to have him here today. Here is secretary lew. Sec. Lew thank you for the kind introduction and organizing this event. It is a pleasure to be here to mark the fifth anniversary of the dodd street on behalf of everyone here, i want to thank them for their leadership, their vision, and unrelenting determination. As we mark this anniversary, i want to reflect on the progress we have made. I would like to begin by putting wall street reform in the context of the crisis. When president obama took office, our country was in the worst financial crisis of our lifetime. Our economy was contracting at the fastest rate in 50 years. Companies were shedding 800,000 jobs a month. Unemployment was at 10 . The Automobile Industry nearly collapsed. Millions of families lost homes and savings. The recession started with financial crisis, but the loss of confidence spiraled into a broad economic crisis. Financial stability can seem the excess risk can have a real impact in the lives of all americans. It is important we remember those who suffered through the worst of the recession of our lifetimes. The boardedup storefronts, lost retirement savings. All of the americans who lost their jobs. An unstable Financial System harms us all. Stability is a critical angry men a critical ingredient. It helps main Train Maintain to that end the wall street reform set out to transform the way the Financial System operates. It is more stable, more transparent, more focused on serving customers. Five years later, with the rules written, the economy is growing. Banks are lending. There is no doubt wall street reform is working. Our Financial System is safer and more resilient. Before the law was enacted Financial Institutions were overleveraged and focused on shortterm profits. Incentives were to take risk and it turned out a significant portion of the risk was born by customers, creditors, and taxpayers. Wall street reform required banks to manage businesses prudently and to maintain buffer so they can bear the cost of their failure. During the financial crisis, this burden was born by others. Going forward, financial reform made clear that had to change. A significant enhancement is the requirement banks hold more capital. It serves as a shock absorber, allowing banks to whether economic downturn. We hear capital characterized as money banks hold back and pileup. More capital leads to less lending. The opposite is true. Over the last six years, Bank Shareholders have added 600 billion of capital. That is 600 billion more to be available to absorb unexpected losses. The largest, most complex Financial Institutions help the least capital. To address the danger posed by these institutions, wall street reform created a Regulatory Framework that applies differently to the complex firms. The regulation of all of the nationss nearly 7000 banks the height and requirements include living will that stress test tests designed to ensure our Financial Institutions can weather severe storms and lend to support the economy. Reform also recognizes risks to Financial Stability are not confined to traditional banks. In 2008, no one was responsible for looking over the horizon to ask tough questions and monitor emerging threats. There was inadequate regulation of financial firms, such as aig and lehman brothers. When several of these companies experienced financial distress in the lead up to the financial crisis, they shook the stability of the Financial System and damaged the economy. Wall street reform created the Financial Stability oversight council. It brings together federal and state regulators to monitor the Financial System and identify and respond to threats to Financial Stability. The approach has been datadriven and delivered as deliberate. Since its creation, it has made actionable recommendations to enhance Financial Stability and designated market utilities for additional oversight to help address the risks they could pose. Through the work of agencies like the security and exchange commissions, some funds or the sec was working to put in additional reforms. To keep taxpayers from having to step in to save a financial firm, wall street reform ended too big to fail. Regulators have commonsense rules to protect taxpayers in the event of a crisis or failure. They can seize large Financial Institutions and wind them down. Financial crises do not respect international borders. We have supported changes to financial contracts that will help prevent fire sales in the event of future failures. Ensuring stability and excessive risktaking is not enough. Functioning markets require transparency and the free flow of information to ensure safety and fairness. That is why wall street tackle the Derivatives Market. It was valued at more than 600 trillion. Prior to reform, derivatives were traded privately, leading Market Participants and policymakers unable to see the market as a whole. The result was a web of visible interconnections. Losses and potential losses led to panic across the market. Many Market Participants were highly leveraged. They had to sell their positions, exacerbating the shock. Thanks to reform, derivatives are subject to Regulatory Framework and many are cleared and traded on transparent platforms. Transparency requirements are at work in other aspects. The law requires Hedge Fund Advisers register with and report data to the securities and exchange commission. The law seeks to improve Corporate Governance by increasing transparency around compensation practices. It also created highquality standards and analysis. It will make Financial Data easier to use and understand. We must look out for new risks and monitor new dynamics and inshore markets remain transparent and participants have access to clear and accurate information. Safer banks and more transparent markets are essential. They are a means to an end. The four reform, many institutions lost sight of this purpose. B four reform, many institutions lost sight of this purpose before reform, many institutions lost sight of this purpose. One of the cornerstones of wall street reform is the volker ru le. It prohibits risky trading, like the london whale transactions. It allows banks to provide services to its customers predicting activities such as marketmaking, risk mitigating, heading hedging. It sought to make sure banks were invested in the success of the loans they originate. Another cornerstone of reform is a requirement a lender make a reasonable, good faith determination that the borrower has the ability to repay the loan. This approach was rare leading up to the financial crisis. Many lenders during the housing bubble loaded mortgages with points and fees to get compensation up front before selling the loan to a third party. These abusive practices resulted in risky mortgages that hurt consumers and threatened Financial Stability. Wall street reform eliminated these predatory practices. It helps maintain access to credit for borrowers under terms they can understand enough for and afford. We have been working with the fha and the fhs say the fha and the fhfa. We must strengthen our resolve to pursue reform of the Housing Finance system. Reform has brought greater fairness to credit markets by improving information. Consumers benefit from new mortgage reforms which are shorter and less complex and make our for a home simpler and more understandable. Similar reforms have been adopted or are being developed for student loans, auto loans, and payday loans. The effect is lenders must focus on extending credit on fair terms and in good faith. They must outcompete other lenders by offering better terms. The independent Consumer Financial Protection Bureau is focused on formulating and enforcing these rules. Through these rules, they have established Consumer Protections preventing predatory behavior contributed to the financial crisis. It makes the financial marketplace work better for americans. It is putting a stop to discrimination and tackling abusive payday lending practices. In addition, we have put debt collectors under federal supervision for the first time. We are leaning in we are stopping predators that prey on the elderly. Money is flowing back to peoples pockets. That includes military families targeted by predatory lending schemes. All told, in the last five years, the bureau has secured 10 billion in relief for more than 17 Million Consumers harmed by illegal practices in the financial marketplace. One of the greatest strengths of the system is one generation after another of innovative financiers. The goal of reform is to make sure the oversight of our Financial System keeps up with the pace of transformation. Rm is not to innovate. It is to make sure that this keeps up with the system. The work of reform is constant and we must the unyielding. The progress must the renewed. If we are to avoid another financial crisis, we cannot afford to take a break from this pursuit. In the past, policymakers have been tempted, especially when the economy is doing well, to roll back the regulations, we can the reforms weaken the reforms, and reduce oversight. Were hearing calls to water down rules because there are concerns it affects liquidity and markets. We all share an interest in properly functioning markets and we need to make sure we do not return to this. As we learned, dealers with too little capital cannot provide the quiddity. Pr provide liquidity. This is a mark of progress. We now have to remind ourselves of the lessons we learned. It would be great if banks could selfregulated and forces that produced excessive risktaking were a thing of the past. Instead of slowing down work, we must sustain the progress we have made. We must ilda on the accomplishments and focus on improving the Financial System for the users of the Financial Services and not just the first providers. You must continue the efforts to expand access to credit and bring the private capital back into the Housing Market by creating housing reform and Work Together and congress to strengthen the reform and enhance the ability of committee banks and other Financial Institutions to serve main street. Regulators implement new rules and they must use flexibility provided to make sure it is the the smaller are regulated differently from the more complex. This is not the same as erasing laws that place reviews on the largest banks in the country. We simply cannot afford to take the risk to the Financial System of making changes to this law that would weaken consumer, investor, or taxpayer protections or impede regulators from carrying out their missions. Wall street reform increases the scope of the responsibilities and they need a stable source of funding to conduct work. Congress should bring the budget in line and allow the agency to Fund Operations with the primary beneficiaries of oversight. We need to protect the ability of fsoc to prevent risk. Fsoc is critical to understanding how developments affect the Financial System. It is growing through hedge funds, pension funds, and mutual funds. This evolution of the Financial System means that we must consider a different kind of risk and be open to different kinds of policy responses. We must always be looking ahead and ask what the risks are in the future to make sure the Financial System is safe. That is why we need to look ahead. We must finalize the important rules, like the ones that raise standards on analysts and fix compensation practices with shareholders, taxpayers, and customers. We have seen attempts to roll back safeguards by slipping provisions into bills. This use of riders is on acceptable. Let me be clear, the administration will oppose the efforts. The bills that threaten to push the clock acts two 2008 and leave the American People vulnerable, i recommend the president the dowveto them. In the aftermath of the crisis, we have seen proof of what we have always known, the American People are resilient and determined, capable and creative, fiercely independent and profoundly generous. Americans took the actions needed to emerge from catastrophe. They pay down the debts saved and secured retirement. They chose to create new businesses and industries and rebuild the nation on a new foundation to lead the world again. Around the world, the ability of the u. S. Economy, the American People, and our process to bounce back is admired and serves as an ideal to which others respond as pire. Financial reform needs to be worthy of the American People. I worked hard to make it the law of the land. Today, tomorrow, into the future, we will work hard to keep the law strong in statute and practice. Thank you. It is a pleasure to be with you here today. Thank you. Thank you for attending. Visit our website to stay on top of financial reform and making markets work better for everyone. If you are in the audience, take your copy of the report. If you are watching on tv, it is on our website www. Better markets. Com. [captions Copyright National cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] a senate panel looks at u. S. Immigration enforcement. We will have live coverage from the senate starting at 10 00 a. M. Eastern on cspan. Later, john kasich officially becomes the 16th republican candidate to join the president ial race. He will make the announcement from ohio state university. We will have live coverage 11 00 a. M. Eastern on cspan3. It is almost as if they were matter and antimatter. Freedom and equality. Hes always to the right and almost always right. Anything complicated confuses him. Filmmakers Robert Gordon and Morgan Neville talk about their documentary best of enemies on the debate between William F Buckley and glowinthedark and gore vidal. Theres not someone in there in. Very unlike today. Today, theres someone saying the numbers are dwindling, talk about hot topic number two. Whereas then i dont think that was the norm on tv at the time. I. Do not think these guys needed it