Every dollar that a main street business has to invest in lawyers and accountants to explain this gibberish is taken out of workers wages and capital investment. Is it any wonder that our economy is limping along at 2 Economic Growth, 47 below is an norm . Third and perhaps most ominously doddfrank has made as less free. We are losing not only are Economic Freedom we are losing our Political Freedom as well. Today americans are less and less governed by the rule of law and more and more governed by the discretion of regulators. It is osha not congress that governed the Workplace Safety. It is epa that governs our air quality. It is hhs now not congress the covers over health care and most alarmingly to Economic Opportunity and economic liberty it is not a bureaucratic progeny of doddfrank the rules abroad Financial Markets. John macy was most present wind up quote law class that provides people with the rules. Doddfrank is not directed at people. Its an outline directed at bureaucrats and instructs them to make still more regulations and to great more bureaucracies. Two of the mower worrisome Government Entities are the aforementioned cfpb at the Financial StabilityOversight Council known as efsa. Of operate largely out of public view and both are subject to virtually no checks and balances. Old have been granted sweeping unilateral power to fundamentally control huge swaths of the u. S. Economy. Argue believe it is the cfpb that is the single most powerful and least accountable to agency in our entire nations history. The cfpb, or more specifically its one elected director, has almost absolute discretionary power to find any Consumer Product unfair or abusive and thus functionally outlaw it. When it comes to credit cards auto loans, mortgages of hardworking taxpayers, the cfpb not only is the unbridled power to make them less available and more expensive, but has the power to absolutely take them away. Lets look at fsoc. Fsoc is an amalgamation of regulars hitting agencies that either help cause of the financial crisis or were largely neglected in preventing it in the first place, notwithstanding their the Regulatory Authority to do so. Doddfrank rewards their fears their fears background criminal sweeping powers over our Capital Markets since then you do. Doddfrank allows federal regulators to unilaterally define vague statutory terms like Systemic Risk financial stress, and Financial Stability. And by defining these terms fsoc can dictate capital standards, product mix and lending activities of the major Financial Firms within our economy. Should firms not bow down to fsocs will fsoc is even empowered to break them up. This is nothing short of a functional occupation of the commanding type of our economy by federal regulators who have nonow been empowered to be central planners. With the exception of agencies dealing and classified information relating to national security, fsoc may very well be the nations least transparent federal agency. Better markets, a Washington Organization that advocates for more regulation of our Financial System said, fsoc proceedings make up all of your open by comparison. Politburo. When our founders set up a system of Governance Company included many constitutional protection for a Great National economy under the rule of law. They want a society of commerce, trade commuters to come work entrepreneurship, and the despair of high government barriers to these activities. They had a noble purpose. They wanted all citizens including those in the old world wrap the bottom of the ladder, the poor the needy the oppressed, to rise in this new land of promise. It wasnt arrogance that made america the new land of promise. For danger there was a contradiction between this land of promise and the millions in bondage hear his human worth and natural rights were denied. As lincoln told us later, the founding generation could not find a way to freedom at the start, but they did boldly proclaimed that all human beings are entitled to their godgiven rights. They had the foresight to lay down an open market economy under a limited government, and when the time of liberation came at last the opportunity to rise would be theirs as well. For generations there was enough opportunity for the poor and the oppressed of many lands to realize their dreams in our land of promise, inspired by the founders conservative vision of individual freedom opportunity accomplishment and happiness. Never in the history of Economic System under the law have so many been so successful and so prosperous for so long. In america we understood that we dont need free markets just to create private riches or government largess, because material possession can never substitute for meaning and purpose in ones life. But Economic Freedom means more than wealth. It means achievement, it means productive work, savings imagination, and it means enterprise. All of these are entitled to their just reward. When government taxes away the fruits of your work and smothers your imagination with a thick web of rules, they havent just taken your wealth. They have robbed you of your purpose. They have stolen your right to pursue your dream. Even worse although the progressive version of government by the rule of regulators claims to cut the rich down to size it is the poor, those who are struggling at the bottom to better their lives to pull down by such an compassionate policies. The american idea and this unique idea unites liberty law and the goal of happiness in the bond that must be seven. Americas unique in being called upon to restore the promise of liberty under the of law a promise we had even shed blood to defend. So ladies and gentlemen tomorrow is another day. And as i look to tomorrow, i see an america with the most competitive, innovative, transparent competitive Financial Markets the world has ever known. Tomorrow i see an america where economic liberties of every citizen are truly respected. Tomorrow i see an america with boundless opportunity and a surging economy for anyone willing to work hard and dream big dreams. To reach that tomorrow today we must commit ourselves to nothing less than replacing doddfrank. With this first step together we can win back americas promises. Thank you very much. [applause] thank you, chairman hensarling, was very clear and pertinent points of discussion. Chairman hensarling has kindly agreed to take a few questions. He has to leave at 3 10 so thats what we will adjourn. But in the meantime if i can remind you again, if you have a question, tell us your name first, your affiliation and then ask a question and we will keep going until 3 10. Wait for the mic about. Will wait for the mic reform. Right here, im sorry. Right in front of you. In terms of speed is could you give us your name. My name is robert im with bloomberg the terms of which the changes, democrats are pretty dug in. Maybe you think . What is the legislative way forward for you then if theres that much opposition from the other side . Arthur bipartisan talks going on . Are weve had a complete partisan impasse . I hope not. Particularly when it comes to the regulatory relief for Community Financial institutions, we have attempted to work with democrats. In fact, im proud that argument has put forth already two dozen bills that passed the floor, many of which are by definition modest regulatory relief provisions. Unfortunately, doddfrank again appears to be sacred text among some democrats. I do not believe barney frank to be among them. He is indicated a have a different a half a dozen different is where he would demand his own law. Theres little i agree with elizabeth ward on but i believe she thinks doddfrank has installed too big to fail. So hope springs eternal but if democrats are going to decide that doddfrank is a brand to be protected or a legacy to be secured notwithstanding the unintended consequences brought into 2300 page bill come forces forforeign rules to be promulgated, i dont even think we quite a twothirds of the rules finalized as of yet and just we will be somewhat at a loggerhead. Having said that, im thoroughly convinced that the left was working on obamacare before obama was even born. So this may be a long labor. Im a patient man acting by washington standards, relatively young. Another question right next do you have a question . All right. Fight over your, please. Our future. Org. My question is youve mentioned that they been declared significantly important financial institution, youre basically codifying too big to fail. And if this is true then why is metlife suing its designation as too big to fail . Welcome to have to ask metlife. I suppose as an engine government didnt want to have a bank, a bank capital standard imposed upon them. Its a completely different Business Model. The fed has no experience in applying capital standards to an insurance company. So again you have to speak to them. Listen, its a mixed bag to have a federal bailout behind you but i suspect they dont want those capital standards imposed upon their business. Im quite certain Asset Managers dont either. Again, these are not banks. Is a completely different types of Financial Institutions. Maybe they know what i said in my speaker the federal government doesnt have a particularly good track record in managing risk in the first place. Im sorry. Right here please. This lady in the yellow. Elaine mittleman, attorney. And im from indiana and my family had a small bank in indiana. What can the local bankers to do that doddfrank is not repealed to emulate the problems they are facing . Im a legislator, not a banker. I have to hold on in hopes that help will give year. The good news is i feel fairly confident theres going to be an election next november. And i believe it now we have five years of david and fighters of an incredible strong anecdotal evidence that can doddfrank is making us less free, less prosperous and less stable. But it is undeniable. The rate of loss of our Committee Financial institutions. We are losing the relationship banking model in america today. Theyre losing their competitive advantage. So we say what is it they can do . Well they can have the voice heard. The right to petition your government for the redress grievances last i looked the still enshrined in the constitution. I will continue to have them if you for some of the more reasonable democratic minds in this city. We are not i do not consider that to be an oxymoron. But im afraid it didnt of them are intimidated today by the voices. Its a struggle between the left and the far left and sometimes the left hand doesnt know what the far left and is doing and the far left hand is choking off any reasonable debate about the fate of our Community Financial institutions, be the bank or credit union. They just do Business Model under this regime im not sure im qualified to say but House Republicans are doing everything we can to get help there as soon as possible. And anything then gradually to work with us doesnt matter how modest the rate for relief is theres an open door to work with them because they these banks and credit unions. Call and mark mark and then we would get to you. Could we get a microphone appear please . Spent before you ask him remember i did say nice things about you. Absolutely this is going to be helpful. First i want to address the question that was asked about what metlife and others to want to be committed to invite us all be benefiting too big to fail is negative or at a low rate because the debt markets perceive it as such. Go to the example of jpmorgan where about 40 about about 40 of the cheapest longterm debt versus metlife rep up 5 is longterm debt institutions like the enzi, theres really not a too big to fail to finish. We run the risk we are encouraging metlife to become more leveraged my question for you is other than revealing title ii what would you duty to end too big to fail . I think you can make the case after with a capital agree standards were insufficient argument think you can make an intellectual case that theyre insufficiently complex. And so i think the key is to focus on what are those appropriate levels . As you will know if the classic older rock strata predicted the porridge to gold, you have perhaps 2 Economic Growth and history tells us we average 3. 5 and whats right Public Policy would probably be doing 4. 5five. If you get it too hot then all of a sudden maybe youre looking at more cascading failures. One, i can right now the danger is, is that we are allowing credit to the politically allocated in america. By federal regulators were the ones who brought it to the precipice of the crisis in the first place by deciding that historically prudent underwriting standards and real estate should be thrown on the ash heap and that we could live in this bold new world that convicted own home. I want anyone to get opportunity to own a home but federal policy and federal regulators did nobody ever ever by putting in homes they could not afford to keep. So number one again out of i can get rid of title i or title ii probably not in the short term but until they get what they some Common Ground on trying to work for more simplified capital and leverage ratios based upon historic norms that on the one hand cant be gained advertisements and on the other hand, does not empower federal bureaucrats to be central planners. Thank you. Even when he didnt get to you. Wait for the microphone please. [inaudible] congressman gowdy something about our system. [inaudible] i wonder if it would fix the system because [inaudible] spent i think were going to stop. Chairman hensarling, the questions how do we fix the system . How many hours do you have . Well, we have six minutes spent i dont have a short and. Theres the old adage if theyre supposed an Office Computer schools that put them there. My experience is that politics is not so much a governed by numbers the governed by intensity. What it will take is people becoming more aware, more politically active in the system. And part of that is the work of aei to empower people with knowledge and facts and arguments. I understand the congressional Approval Ratings stand somewhere between headlights and bubonic plague head lice. I get there. The people are concerned about the system as they well should be. But americas polarized at the moment. I think the polling data bears that out. There shouldnt be surprised congress is polarized as well. I have very strong thoughts of what is right and wrong in america. But i never let my principles interview with trying to compromise policy. Again jefferson said the ground of liberty is to be gained in inches. So i will negotiate in good faith with any democrat and asked myself the question at the end of the process is this legislation taking imitrex and i want to go or dont want to go . Is a more good will more bad . s i think its important how to improve the system. The American People have to hold the elected members accountable but in order to get there to educate himself about the process and decide what values do they believe in. I still believe the American People believe in the core values of economic liberty. Liberty, period. Economic liberty, religious liberty, political liberty. That brought people to our shores in first place is bringing it to our shores today. Is something unique about it i believe in america exceptionalism but the budget taking the time to understand the policies can hold their members of Congress Accountable and they could start by talking to democrats about the plight of community banks. This is going to be our last question for the day. Spirit and whats a typical then well make time for two. Thank you for that wonderful speech. I was an senator dodds staff during the drafting process. I didnt understand it then and iteven more puzzled now. Wants big more important, did he understand . It has to do more the process but why couldnt the bill be a compromise bill . Why couldnt it have sarbanesoxley was a bipartisan bill. Why didnt god or frank attract in a thoughtful leaders like you to make it a different product . Welcome you have to ask talk to them. I cannot climb inside their innermost thoughts. What opposite suggests itself is the Democrat Party was enjoying a rare super majority status in the house, innocent at the time. Because of that they did not need a single republican vote to pass their agenda and they were not interested in doing something that the whole of the American People might be able to embrace. They had a super majority by the party might enjoy once or twice in a century. I recall the cynical words up now chicago mayor rahm emanuel never let a serious crisis go to waste it allows you to do things that otherwise you could not do. A lot of doddfrank was a grab bag wish list from the left that have little or nothing to do with the root causes of the financial crisis. And let us remember im sure peter is well aware of this as he was on the commission. The Commission Report on what the root cause of the financial crisis word came out after doddfrank was already passed. So its kind of like playing basketball and the team hasnt shown up on the court. You are dribbling and dunking and they decide to triple and dunk and unfortunately, the American People i think have again suffered less freedom, less prosperity and less stability because of it. And my hope still lives identify the government to be at least enough democrats to saint may be better ways that we could at least provide doddfrank it may be better ways we can improve doddfrank. Im going to give up my quest for placing it but i can walk and chew gum at the same time so i can work with democrats and find Common Ground and try to keep a few more communities and Financial Institutions alive trying to prove our gdp just a little bit but thats a better question for them and i havent seen any either of them into well. Thank you very much for this rare privilege to speak. [applause] ladies and gentlemen, thank you all for coming and being with us today. [inaudible conversations] secretary of state john kerry testified on the other hand, Nuclear Agreement this one produced joined by Energy Secretary ernie moniz and jack lew. The administration has been beaten with lawmakers this week to discuss the do. Live coverage from the Senate ForeignRelations Committee starting at 10 a. M. Eastern on cspan3. On cspan radio and cspan. Org. Its almost as if they were mad and to matter. Is always to the right and almost always in the right. Anything complicated confuses me. Filmmakers talk about the documentary best of enemies on the 1968 debate between conservative william f. Buckley and liberal corporate all over war, politics, god and sex. Spinsters that someone in the year. But unlike but today. Today i believe there is someone saying the numbers are dwindling. Talk about hot topics. Hot salacious topic number two. Whereas howard k. Smith was a distinction and was embarrassed by this. It was moderating but he disappeared for sometimes five or more minutes at a time. That he would have a moderator not jump in every 30 seconds. I think of it at abc stood back and let the fire burned. Sunday at eight eastern and pacific on cspan cuba and a. A federal grand jury has indicted a suspect in last question at Historic Black Church in charleston, South Carolina, on federal hate crime charges. Is accused of killing nine people during a bible study in charleston and was charged on 33 federal counts. Attorney general Loretta Lynch spoke about the indictments at a briefing at the justice department. Welcome good afternoon, everyone and thank you for coming. Im joined today by vanita gupta, the head of the Departments Civil Rights Division and mark juliano Deputy Director of the fbi. We are here today to announce that a federal grand jury in South Carolina has returned a 33 count indictment against delta and move, charging him with federal hate crimes and firearm charges for killing and attempting to kill africanamerican parishioners at Emanuel African Methodist Episcopal Church in charleston South Carolina. Because of their race and in order to interfere with the exercise of their religion. As set forth in the indictment several months prior to the tragic events of june 17 he conceived of this goal of increasing racial tensions throughout the nation and seeking retribution for perceived wrongs that he believed africanamericans have committed against white people. To carry out these twin goals of fanning racial flames and exacting revenge roof for the decide to seek out and murder africanamericans because of their race. An essential element of this plan, however, was defined as victims inside of a church, specifically an africanamerican church, to ensure the greatest notoriety and attention to his actions. As alleged roof setup evening of june 17 2015, to carry out this plan and go to the Emanuel African Methodist Episcopal Church in charleston, South Carolina known as mother emanuel. Mother emanuel was his destination specifically because it was an historic africanamerican church of significance to the people of charleston, South Carolina and the nation. On that summer evening dylann roof found his target, africanamericans engaged in worship. Met with welcome by the ministers of the church and its parishioners, he joined them in their Bible Study Group or the parishioners have bibles. Dylann roof had his. 45 caliber clock vest will and eight magazines loaded with hollow point bullets. And thats the fourth in the indictment, while the parishioners of mother emanuel were engaged in religious worship and bible study, dylann roof drew his pistol and opened fire on them ultimately killing nine church members. As you know the state of South Carolina is also prosecuting roof for the murders, attempted murders and firearms offenses he is alleged to have committed. We commend the state authority for the tremendous work and quick response. It is important to note however, that South Carolina does not have a hate crime statute and as a result, the state charges do not reflect the alleged hate crime offense is presented in the federal indictment returned today. Specifically the federal indictment returned today charges roof with nine murders and three attempted murders under the Matthew Shepard and james byrd hate crimes prevention act. Is federal hate crimes law prohibits using a dangerous weapon to cause Bodily Injury or attempting to do so on the basis of race or color. The shepard bird act was enacted specifically to vindicate the unique arms caused by racially motivated violence. With untrained tremors also charged under a second federal hate crimes statute that prohibits the use or threat of force to obstruct any person free exercise of their religious belief. Finally, roof has been federally charged with multiple counts of using a firearm in the commission of these racially motivated murders and attempted murders. Of these crimes, roof faces federal penalties of up to life imprisonment or the Death Penalty. I note that no decision has been made on whether to seek the Death Penalty in this case. The department will follow our usual rigorous protocol to thoroughly consider all the factual and legal issues relevant to that decision which will decision, which was such an involved counsel for the defendant roof. In addition consultation with the victims families is an important and vital part of this decisionmaking process and no decision will be made prior to confirming within. Family members of those killed at emanuel ame and the survivors were informed of these federal charges earlier today. I would also note that this indictment contains allegations and is not evidence of the defendant guilty as you will recall this federal grand jury indictment follows an announcement that he made on june 18, 2015, at the department of justice was conducting a hate Crimes Investigation into the shooting at emanuel ame. Immediately following the shooting they experienced prosecutors and u. S. Attorneys office in South Carolina along with experts attorneys for several Rights Division began working closely with the fbi atf, state and local Law Enforcement officials including the South CarolinaLaw Enforcement division or sled the Charleston Police and the Solicitors Office for the ninth circuit South Carolina, and thoroughly investigating these crimes. I would like to thank the many state and federal Law Enforcement officials for their dedication and hard work to ensure that this investigation was conducted thoroughly and expeditiously. I would also like to thank South Carolinas attorney bill nettles for his and his office is tremendous effort on this case as well as the dedicated attorneys from the department of Civil Rights Division to a particular i would also like to extend my thanks to charleston Solicitor Scarlett Wilson for being a cooperative and effective partner. We have a strong working relationship with solicitor wilson and her office and we look forward to our continued collaboration as a terrible state and federal prosecutions work their way through their respective court systems. Thank you for your attention. Any questions . [inaudible] that hasnt been determined yet. Were working cooperative with solicitor wilson. Both cases will proceed to the court system that will both work to reduce the unnecessary burden to the families. [inaudible] what factors go into the decisions because you are a number of factors. We will consider how the cases are progressing to the system and how the judges are returned the case to state a motion practice. Both cases are in the early stages, have yet to motions at this point its difficult to say how that will impact on the schedule. This seems to fit the definition of domestic terrorism. Were those charges considered in this case . As you know there is a specific domestic terrorism statute. However, hate crimes as i stated before on the original domestic terrorism. We feel the behavior that is alleged to have occurred is archetypal behavior that fits the federal hate crimes statute and indicates. We have a defendant who is alleged to have harbored discriminatory views towards africanamericans, to have sought out an africanamerican house of worship, and it was particularly noted because of its age and significance and he also saw that africanamericans parishioners at worship and locating several hate crime statutes. We think that this is exactly the type of case the federal hate crimes statute were, in fact, conceived him to cover. Racially motivated violence such as this is the original domestic terrorism. 2015 about these people are dead today because of their race. Thats primarily what you allege. Could you speak to where we stand as what that says what that tells us of . I think this is a tragic situation because its a troubling situation as the allegations in the indictment reflect the mindset of this young man and his specific purpose to target individuals for death because of their race. But also to target individuals for death to engage in religious worship as well. So i think a detriment that you about these matters but we certainly at this point dont know much more about the definitive investigation is ongoing into a host of meta including those motivations. But i think the message it should be clear to this is that the federal government and our state partners are committed to investigating these matters fully and thoroughly. And where we of racially motivated violence committed to acting. It says in indictment targeted mothering manuals specific because of it was historically africanamerican church, significant to people in South Carolina, charleston or to the nation how did you know . How do know thats what he chose the church as opposed to any africanamerican church . How do know the National Significance of the church . Are not going to comment specifically on the evidence that will come forth at the trial except to note that we believe the evidence will support the allegations that roof chose motherhood manual because it was an old Church Historic church, there was historically significant as one of the oldest africanamerican churches not just in South Carolina but in the nation. And that he was looking for the type of church and the type of parishioners whose death would in fact, draw great notoriety for his racist views. I know in your mark used the language because of come into one as you present a case like this to what extent all of the factors they preclude such as mental health, drug and alcohol he hates his mother, he hates gays, he was going to come and more people. What impact does that have to . Hopefully they would not be receiving information like that although we would certainly act on it if we did. Where every other possibility of multiple motivation you have the possibility of multiple charges. As you will note the charges specific alleged racially motivated violence in the murder and attempted murder of his victims a mother emanuel but also the federal hate crime statutes that prohibit using violence to essentially present anyone from exercising their religion. Thats not tied to race. Raise. That is tied to the exercise of religion. So we see here for example activity that supports allegations of more than one in 10. With respect to issues you raise about the defendants state of mind, of course all of that will be taken into consideration as this case goes order a medical perspective as to what impact any other factors would have on the case. You suggested this was a seven month plan. Can you elaborate a little bit about how detailed this plan was, whether he made trips to the church prior to that night, june 17 . Well, thank you for the question im not able to go into how many months it was planning to it was several months prior to the june 17 incident. Im not able to go into the evidence right now that would show his actions surrounding that at this point. Following up on ryans toy, should be a federal domestic Terrorism Law . For your average person who sees the way people in Law Enforcement talk about different types of killings with different words, what distinction should they make when they hear talk about a shooting in chattanooga issued here as hate crime. Doesnt matter and should to be a domestic terrorism while . As to what law should or should not come out of result of this investigation im not going to speculate at this point in time. As to the nature of the case though i think you touch on the issue that people may feel that because we have such a strong emphasis on terrorism matter since 9 11 that when we talk about matters and dont use that terminology that somehow we dont think that those crimes as serious. I want to be clear, nothing could be further from the truth than that. This type of crime in particular racially motivated violence for which a federal law was specifically enacted to cover is of great importance to the federal government. We have devoted considerable resources from the beginning of this case to make sure this interest was explored and that if, in fact, the evidence supported it at the allegations were brought. Because this is in fact the archetype of the original domestic terrorism but i think sometimes people do focus on the terminologies because as i mentioned since 9 11 theres been a great focus on the type of case. It should in no way an absolute no waste signifying that this particular murder or any federal crime is of any lesser significance. How would you determine whether or not he is a candidate for the death tally stick with department of justice and the process by which we consider that eligible dependents in determining whether or not to seek a penalty. It is a very detailed and thorough review process. It involves submissions from defense counsel that it involves consultation with the victims families and it involves a review of all that theres factors that we utilize for the deaf and to determine whether not we feel that we could prevail on those factors add a trumpet ultimately after this review process which is both obvious Attorneys Office level if it is then also here in maine justice and ultimately it comes to my desk where i make the ultimate decision whether or not to seek the Death Penalty come in any death eligible case. As i said before they want to be clear that no decision has been made at this point in time asked whether not to seek Death Penalty but we do have an obligation to place the defendant on notice that the build is an option until about his counsel of time to begin to prepare to make those submissions. Can you talk about what your offices in conjunction with the fbi ask . As director comey announced that he has initiated a review into the procedures that allowed us unfortunately led to us missing the fact that mr. Roof applied to purchase that can. This is a matter of great importance for is something that was a very disturbing and frankly, heartbreaking to all of us who were reviewing this matter. That investigation is ongoing and i look forward to receiving the results from it. On a slightly different topic yesterday you said you were looking at working on the bland case but could you expa you were referring to ms. Bland who died in texas while in police custody. As noted, that matter is under investigation by local authority to the fbi is monitoring that case as we often do in many situations and were waiting for results of local investigations as well. Could you talk about what your views are on the planned parenthood of videos that an adequate i know youve received some letters from members of congress. And there is an applicable federal law here and is that something that youre going to open an investigation on . Im aware of those matters generally from the media and from some inquiries that a been made at the department of justice to indicate at this point where going to do all the information and determine what steps they could take at the appropriate time. Just switching gears on opm the cam expect any charges come from the department of justice by the perpetrators of the opm of bridge . Thats an Ongoing Investigation and openness am im not able to comment at this time. The department of justice as well as other federal agencies are actively involved in notifying everyone who was subjected to that breach and providing them with the tools necessary to protect their personal data. The families of the victims in South Carolina, your reaction to how they responded to these very difficult situations spent i think the families of the victims have provide an example to the country of what to grace andinterest. Entry faith looks like. I think they are an inspiration to us all. I frankly do not know how many of us would be able to find that type of forgiveness in our hearts so soon after such a terrible, terrible heartbreaking loss. In particular i thought it was very helpful for everyone watching that was to see that the families acknowledged that they were angry. They did, in fact have anger towards the person to take in ones but they were able to Still Holding onto the anger still move to forgive mr. I thought that was an incredible lesson and message for all of us us. Its been some time now since your office in new york began the investigation into the death of eric garner. When can we expect a resolution . Are you close to us because i cant comment on the timing of that investigation except to say it is still active in the still ongoing, and the Eastern District of new york is moving ahead with that investigation and a thorough and an efficient manner. [inaudible] given that more people are killed by nonmuslims radicals or extremist, do you think you are properly organizing resources to focus on the domestic terrorism threats because we are tracking a number of threats aimed at americans on u. S. Soil and abroad, and certainly the death of any american, the death of anyone as a matter of great import your in federal government. With a comment on how were allocating resources i would simply say we take all threats seriously whether they come from a foreign domestic come a foreign terrorist or position from a domestic Militia Organization or simply an individual who post threats online. We take all those mac seriously and about what we do other resources necessary to first of all protect individuals who come under those threats and if in fact, whether or not to matter to vindicate the interests and bring the killers to justice. Thank you all. [inaudible conversations] a couple of road to the White House Events to tell you about. As we can we bring you an interview with democratic president ial candidate lincoln chafee, the former governor and senator talks about the 2016 race, his life story and decision to leave the republican party. You can watch that at 6 35 p. M. Eastern and pacific on cspan. Next, labor secretary thomas perez testifies about a proposal to change Investment Advisors standards for Retirement Savings accounts. The rule change is aimed at eliminating conflict of interest for Financial Advisors. Center Johnny Isakson chairs the senate health, education, labor and pensions subcommittee hearing. [inaudible conversations] welcome all our visitors, welcome our secretary of labor secretary perez. Thank you to our other minnesotans for an event in always glad to have my Ranking Member, Ranking Member franken. He keeps me straight all the time. If not straight, at least he keeps me laughing. s do you keep me laughing, too. Is that the proper thing to say . Spin that sounds good. We are good friends, we are. You are a cosponsor my very first bill state and should mention that on television which i really appreciate. Spent we arent going to not rehash our personal history here. I think well go right to the thing, right speaks only good friends talk like this. Unwelcome all of you know start with the things to turn over to Ranking Member franken. The fine print includes hundreds of pages of department of labor regulations which seek to redefine a single word fiduciary with now millions the chance before the innumerable limit access to Investment Advice for the families who need it most and in my opinion is a solution in search of a problem. By way of example in terms of that one word being defined by pages of regulation, thats the regulation and the comment of the department of labor on fiduciary will change. Just to give some idea of how much paperwork it to explain it. Is that like a gift for me . [laughter] im going to let you take the to and we did tonight. Or do whatever else you would like to do with it. The regulation and intentions are commendable to ensure that low and middle income families receive the same quality of advice about their investments as well to. On the proposal people who provide Investment Advice and Retirement Savings must act in the best interest of investors or forfeit their fees. Under the new rule providers of Retirement Savings vehicle such as iras and 401 k s must be their entry into a contract that says well act as the british invented only if the investor. The problem is the regulations that govern fiduciary advisors limits product avail for retirement accounts and increase the so much so that low to moderate income people be less mortal income more moderate income and less informed. The rule requires disclosure more information than is reasonable often even times provided possible to provide. Advises us this estimate the cost and level of these. Because these often fluctuate as to rates in return such as much are inevitably wrong. For that reason theyre considered misleading and banned by the securities and Exchange Commission or i might insert here my private life of of the three years ive dealt with regulations see that regulations the. And the rates and other its a return in the point in time can buy is by nature be wrong the next day because it changes marketing you can penalize people for something that is no fault of their own. The records would also restrict iras investors to the products the department libertines appropriate. On the Labor Department said the Investment Decision defies all logic. That is a one size fits all open approach to print investors from diverse lincoln was to protect from the downside risk. Hundreds of Investment Options for Retirement Savers now we have would be reduced to a mere handful for most americans. This seems entirely counterintuitive tour Public Policy goals of increasing Retirement Plan for put station for all citizens our country. Those contracts were not always been accounts were created. Millions would receive letters from the Brokerage Firm telling them to no longer able to get personalized system. By one estimate, a third would be forced to leave the business because they couldnt be properly licensed. Having personal represented matters according to 2012 study fewer than half of the consumers who dont have advisors say for retirement. In other words, many working families will not be able to get the advice they need to get comfortable about the decisions that are made. Studies have shown losing personal existence could be per capita savings reduced by as much as 40 and economic savings if a low and moderate income people are as i told secretary perez yester im interested see people get called advice as those advice in a responsible and accountable for that advice. We do everything we can to improve the accident of savings to americas low and moderate income housing. The matter is not the culprit the matters i get to the goal and i defined. In my judgment dummy pages of regular should have that much explanation under single is too much, too restrictive on the access of advice that these people need to get the with us or i will turn over over to our Ranking Member, senator franken, from minnesota. Thank you, sir isakson. This is my first hearing as Ranking Member of the employment and Workplace Safety subcommittee. I look forward to working with my friend. Chairman isakson and members of the committee on the Important Role they subcommittee plays with jurisdiction over a variety of employment issues including workforce education and training, the health and safety of americas workforce, wage and hour laws and workplace flexibility. Todays hearing you were discussing another important issue, protecting americas workers Retirement Savings and in particular a review of the department of labors post will address topics of interest. In the retirement advice that americans receive when managing their retirement nest egg. We have read the headline time and time again that americans are not saving enough for retirement that i have heard it many times of hardworking minnesotans about how hard theyre working just to keep up and provide for their families let alone save for retirement. Saving for retirement is hard and investing can be intimidating for those without any experience, leading many to rely on advisors to help guide them through their Retirement Planning. Now, most advisers and brokers put the interests of their clients first, and ive heard from a number of them who have sent me letters recently in support of the department of labors proposed rule from including charlie unplugged in mispronounce of charlies name but its Something Like [inaudible] i think it means meat sauce and [laughter] in some language. [laughter] but he is a sidebyside Financial Planning and plymouth minnesota and best meat sauce comes from the western suburbs of minneapolis. Charles bock of the bok Financial Advisors in woodbury, minnesota and another minnesota financial visor has gotten a hold of me in support of this rule. We will also hear from scott later today. Is a managing director of rebounds ira and he will be testifying. He offers his Clients Asset Management custom portals for iras and offers onetoone consultation all while embracing the fiduciary standard eddie george some of the lowest fees in the industry. But there are also those who charge much higher fees and sometimes even lower returns for retirees. And when that happens its hard for working americans who are planning for retirement. And they pay the price are these hardworking people shouldnt have to worry about the fact that some advisors dont have their best interest in my. I think we can all agree to that. The department of labors or postconflict of interest rules seeks to address this issue to many groups are supported of the dols role but there are also those that believe the rule will result in unintended consequences. Thats what this hearing is about. Thats why its so important are this is a process and will hear from a range of perspectives today to this understand the benefits and shortcomings of the or postal. Thats why i was a little taken aback by the title of todays hearing, which is restricting advice and education, dols unworkable investment proposal for American Families and retirees. If i was aiming i couldve named dols fiduciary proposal, what a great rule. But that i dont think that wouldve helped much, right . No, of course not. Say you are in agreement. [laughter] i think the departments intent with proposal is very clear, to help americans keep more of the hard earned money for retirement retirement. The saying goes the devil is in the details, and a 400 plus pages there are many details in this rule. I look forward hearing from secretary perez to put understand how this proposed rule will work and from other witnesses that we can make this rule even better. Thank you, mr. Chairman. Thank you, senator franken the we will now turn to secretary perez. Thank you, mr. Chairman speed hold your remarks about five minutes. We will appreciate a. Thank you, mr. Chairman and Ranking Member franken, members of the committee. Is honored to be here with you. I want to start by talking about a real person because behind every regulation our proposal negotiate is a real person. A navy veteran and electrician did everything right picking his wife raised four kids in suburban chicago. They built a solid middleclass life. They saved their money. They built up an impressive portfolio with vanguard and when he was struck and with alzheimers and could no longer manage their finances his wife megan of them at the local retail bank the they could use this bank redistricted custody and. The Bank Investment broker told her to liquidate the vanguard portfolio and sold in a very complex, variable annuity to the tune of 650,000. He was Something Like 75 or 78 years old at the time of the sale of this variable annuity. She trusted us advice. She thought it was in their best interest to the annual fee on that variable annuity, the annual fee was 26000 giving it to access the money right away, a 7 surrender charge would cost them more than 45,000 but in the end the brokers conflicted advice calls a hardworking family more than 50,000. This story is tragic but not unique but its also not illegal because someone has concluded the advice was suitable. Conservative estimates by the council of economic advisers placed the cost of conflicted advice of more than 17 billion annually. Erisa is more than six decades old. Attention was a defined benefit pension. Today we have an 11 trillion market of defined contribution of 401 k s and iras 11 trillion. Tides of change. Consumers not to make critical decisions about how to invest these funds that they have so hard earned