Transcripts For CSPAN2 Key Capitol Hill Hearings 20150420

Could she possibly be an activist . Part of the following an International Activist first lady, with, as Hillary Clinton. I suggest to all of us that we have to look the fact that conservative women care about the world, too. And we have as much interest in our sisters and progress around the world as our liberal counterparts do. One person who commented on this quite beautifully actually and recently was the first lady of afghanistan. I racer because they can at this point of consistency. Laura bush said she worked on afghan womens issues for the rest of her life. And recently in dallas, the new first lady of afghanistan came for a meeting of u. S. Afghan womens council, established 13 years ago not long after the fall of the taliban, still in existence come a Publicprivate Partnership between afghan and u. S. Government many individuals and private institutions in our country. Weve never left the women of afghanistan and laura bush has been our leader. And since in the last few years Hillary Clinton has enjoyed mrs. Bush as cochair. And now we have mrs. Wobegon, the first lady of afghanistan as cochair. So last month in dallas, laura bush is someone who knows what the word commitment means. She described mrs. Bush as relentless and resourceful. You dont appreciate her power until you are faced with all of her achievements. You have not forgotten us and we will never forget you. Laura bushs comment in her characteristic way because she doesnt like to bring attention to herself come and i think would be partly others but all the wonderful things that we are saying but they are just some true. A response was when it comes to keep issues in your life that you care about you get to just rub your hands and say im done with that. You have to keep working. And thats what the work come the ongoing work with the Bush Institute has allowed both president and mrs. Bush to do. Anne mention a very fun project that i just had to comment on the big read. Where you talk about communities around the country that mrs. Bush inspired to get around about and to enjoy that and to have the libraries and Community Organizations get involved. One of the books is to kill a mockingbird. And just across Long Island Sound it is the town of bridgeport, connecticut, where i grew up and that was one of the cities where we brought the big read. And they took on to kill a mockingbird, restaurants and stores and all got involved in this including one of the local bars that we need a drink tequila mockingbird which is the kind of impact, the fun that you can have with these initiatives when you do have that podium and you do have that power. You mentioned katrina, and i think this was alluded to in your paper dana but what most people dont know is laura bush made 25 visits to the gulf coast after katrina. And her Library Foundation continues to rebuild those libraries. The Ripple Effect of her work is astounding. Im proud to have served with her. Im proud to have served in the white house many times with the opportunities ive had to be a fly on the wall for the arc of history, and to be able to continue to tell the story of remarkable Women Leaders who continue to lead in our country and the huge element of the leadership come and particularly for laura bush for the privilege and honor to represent the American People at home and abroad. Thank you. [applause] so we have a microphone that will travel to you if you raise your hand with a question. And i will say that we will get priority for the first questions if there are students. If not we will go to others. Thank you very much is this on . Thank you very much for a wonderful forum. I heard a lot of positive things about laura bush that you dont hear in the media. I also appreciated the Historical Perspective of the other first ladies. And i must say i was a little surprised, i think its patricia, the way you portrayed nancy reagan. Not terribly involved with White House Affairs at least thats what i heard. He talked about purchasing a tea set and other things that she was criticized for spending so much money on. But when i read back in those days i remember the media attacking her for being responsible, for example for getting rid of donald regan, the secretary of the treasury and the chiefs of staff. I think i heard it also say that she was responsible herself for bringing together they kill gorbachev and president reagan. Mikhail gorbachev. Didnt hear you correctly . I thought she was a much more involved first lady. I do agree with you. Can anyone hear me . I guess for purposes of brevity in my paper, i compared to rosalynn carter, shes very different but i do agree with you on a number of remember shows the whole campaign to say no to drugs. She gets very involved in the. I think she was takes on a very big role when president reagan is shot. We realized how much she is probably setting, shes one of the country. I do agree with you, or flavor did not come out in the paper. I guess i was working there just to rosalynn carter, but yes, i think as determined on a fictitious example shes all bit of both. She does have a politically active role, i think different than Hillary Clinton but she definitely initially comes in and is going to purchase a tea set, its 200000, and the data she goes out to purchase that come it comes out and immediate that the School Lunch Programs are going the money is being decreased. So i think that i dont disagree with you. I think she kind of takes on all bit more of a political role later on especially when president reagan is shot. Can i add just a little bit of commentary to that is will and and i appreciated the question because i worked with mrs. Reagan as well and i think shes a misunderstood character in our history. I will leave you with a humorous response that she had. She was criticized for all the clothes as she brought the it was a dramatic change from the carter administration. This Heart Truth Campaign and make it the laura bush was involved in, one of the president ial libraries that we went to to talk about the Heart Truth Campaign or the Red Dress Campaign as it was called there was an exhibit of Nancy Reagans red dresses as part of this advocacy and awareness program. There were hundreds and hundreds of people there to see it, line out the door. Nancy reagan whispered to laura bush, she system also is used in the white house and i was vilified for my close but now theyre laying out the door to see them. So she understood. She made fun of herself and an event in washington, the annual gridiron dinner where she showed up wearing secondhand clothes and saying to the tune of secondhand rose, secondhand clothes. She knew precisely because one of things patricia said was true was the timing of releasing the china which by the way with privately funded, not 1 cent of taxpayer dollars but it didnt matter that the fact it was a huge price tag and it came at a time, were in a recession in our country and school lunch program, the timing was terrible so she suffered from some bad press. It was very hard for her to ever recover. Its still refer to often times as queen nancy. But again i would say most profoundly devoted to her husbands success. Another question . I also want to say fantastic panel, really enjoyed it. I wonder if anybody on the panel would speak to the magnetic power of laura bush over her husband . I would say that in a very positive way and i can think of a couple examples i would offer but i would be true to the authors. I was surprised by the choice of as in you as the president ial library. I was thrilled about it but thats where laura bush went to school. So i think she had some sway on the location of the library which couldve been in waco. But i am impressed. I also understand president bush had a habit of not want to stay overnight anywhere without laura. I wonder what are some other things about how she i would say positively influenced her husband, whether its in speeches. We heard a statement of that but what was she doing for her husband . I can touch us two of them come its very powerful and positive. I would love to hear the panel talk about that. I will just make two comments and then give i have known the family since the 80s but they are partners in everything. She is an anchor to him and he is hugely supportive of everything that she does. In fact, i will just say one comment here about even going to afghanistan. Canard about the trip that we planned 10 years ago this month. When laura bush interviewed me and she said i want to go to afghanistan that was the first thing she said and to my first question to was does the president know . And she said yes. Because i knew what that meant. If he knew, thats also support in the world we need to. He supported her to go, he sent her all over the world as an advocate as a representative of them come the closest personal envoy you could possibly sent all over the world is your spouse and she was so effective. They were partisan everything. Personal lives obviously and devoted to the family but also in this important work of the country. She was there in every single part of it. It was grounded for him and defining that zone of privacy and family life which is so important. I would often remember being on the phone with mrs. Bush and i was in my office, the president had come home, which they are over this door they live over this door. She would go. That was it end of conversation. That was her time than to be there for him. Because the job is just so hard and they depended on each other so much. I think anger is a good word anchor a mountain is something that is fastened down something you can count on. Just by her presence you can count on her. I was very privileged because i state a lot with them in the Governors Mansion when he was running, thinking about running for president. Ive been in the white house where he just we touch base with her no matter where he was. He would say unwinnable in time he would say i said just the opposite of what i mean. Something like that the she would take him you know she was always just this calm assurance. And he said i produce a more than once, how win i think youve been so fortunate to be from a loving family. Its like youre not afraid of success and joy not afraid of failure. I was there one time at the Governors Mansion and she was on the phone and i just was sitting there listening. When she got off the phone she said, you know as Time Magazine and the george wins he will be on the cover of Time Magazine, and if al gore wins he will be on the cover of Time Magazine. Its like, as far as she was concerned she was going to be fine no matter what happened. So just having someone like that in your life when youre in that kind of arena is extraordinary. I think we can do one more question. Thank you. I just want to know if the Hollywood Community where music energy or Broadway Community gave mrs. Bush cant Enter Initiative with the arts . If they reached out to her and help her out . One thing i will say that we didnt mention, at the very end of the administration, well first of all i will say this. When youre in the white house in the white house if you need a musical performance our group to come play basically no one will say no. They are happy to come. We had many broadway performers and other performances through the Kennedy Center honors every year, hollywood is always honored. But at the very end of the Bush Administration all the Cultural Arts agencies got together to honor laura bush. I will not transform talk to about this because you have it organizing it but they all spoke everything that she had done to support the opening of performances come to go to opening of exhibits. She was always there. And begin another one of these underreported activities of laura bush. Do you want to respond . That was really calm and she went company, the thing is she enjoys all that. I mean, its really her leadership was an extension of who she was. So when she was first lady i remember jim leach his wife jim leach was was head of the national trauma, a congressman from iowa and they love grant would advocate an exhibit of grant would over across the street from the white house at the renwick. But she would like to negotiators would have a group of friends every book festival. She said you only take over the instigator i would open and what went over there and what you ought to go see. One time when i was there we went to fords theatre to see this performance over the president s shoulder which was a one act, it was a one person play about a ballet, a white house ballet pinup boy did she take us but she sent all the valleys at the white house to see that they were all so excited. So she was always present not to get attention. She would sit in the back, when we were to fords theatre she was not the back of the room just out of enjoyment. But they did i think everybody. Appreciator and that was a wonderful event. It was that the National Portrait gallery in the smithsonian american art museum. Can i add one comment . That gave me a minute of two occasions and if i did talk about the traditional hollywood that we think of, but they call it would start. Its no secret republican administrations maybe have a different relationship with hollywood than democratic administrations do. There were two occasions i remember where Steven Spielberg came through one time, tom hanks came to another time and theyre going to a photo receiving line and mrs. Bush told Steven Spielberg aside, the movie schindlers list had been out about a year and she said they started talking about both their fathers experiences serving in world war ii. Her father had been in europe. His father had also served in world war ii in the pacific theater. And he was astounded, Steven Spielberg was, by this very personal conversation as he had with her practice is not what hollywood expected of george and laura bush, to put it on a human level. They are human beings like the rest of us. After Steven Spielberg and his wife came to the line understanding their in the green room and he said hello and he walked on at the turn back and and he came back to me and he said can i really like your first lady. And i thought, well of course, we all do. We love her. And tom hanks and his wife rita wilson, after a christmas reception from reid wilson was really interested in like the human life at the white house. How did she order a Christmas Gift . Like where do they go and how does she do it online . That she use amazon . Those kinds of things. I think people are intrigued by the michigan even people at that level, the celebrities that come how do they relate and in the presence house they related as human beings. I was actually very interesting experience for me but promote bush it was natural to have a conversation about something that connected them. When i was at the education department, we went to an evening event and we were in the photo line. Unfortunately, that was the day that spot had died. And one of my dogs have died that day to the as i came through the line, i said im so sorry about spot. And depression started to cry and i started to cry. Rod paige wanted to kill me come and laura bush came over and she said can i just love that he cried. And she said can but now he needs to wipe his eyes because its going to ruin the rest of the photographs. Get back to work. I will mention one other story. I am from el paso and it was a movie called glory road about our basketball coach don haskins who took the Texas Western all black lineup team against kentucky and won the ncaa 1966 tournament. But when they had that the bushes showed that movie at the white house and had the actors here but they also what they really had were the real people who were part of that. They also come with a place in el paso called h. H. Carwash. Its a real car wash. It would start about syrian emigrants and they are the biggest utep fans. When lower and the president would come to el paso they would always go there and eat mexican food to get a count of three tables. Is very exclusive, only three tables. But the owner of h. And h. Carwash was invited to the event at the white house because hes such a fan of the miners and the fact that the president table. So when you go and h. And h. Carwash now we all signed the menus and has a picture with them, but what jesus all the time, he said i wish people could meet him. I wish they could experience the love and that make him how much he cares. And so anyway, i love hearing maynard say that, and those of us who do know them just a what a struggle it is the struggles that theyve had about how much they really care about people. I think thats an appropriate last word. I want to thank everyone for coming to the panel. Thanks to you all so very much for your research your commentary. Your memories. I think its been a terrific panel. Thanks very much. [applause] [inaudible conversations] and the senate to end at 2 00 eastern time today on cspan2. Expected to continue work on a building with Human Trafficking that would increase penalties and create a fund for victims. It has been held up over how the money can be spent on abortion service. Leaders say theyre close to compromise and we will learn more when the senate towels and that they too. The house back for legislative work tomorrow at 2 00 eastern working this week on funding for the Consumer Financial Protection Agency and guidelines for sharing information in the event of a cyber attack but you can watch the house live on cspan. Lawmakers are meeting to set didnt work out differences between the senate and House Republican 20 16 budget resolution passed by each chamber last month. Among the conferees on the chairs and ranking members of the house and Senate Budget committees, and cspan will have live coverage starting at 3 00 eastern today. Challenging the new fcc and the rules, fiber position to File Lawsuits against the fcc. Tonight on the communicators we will speak with the president and ceo of one of those organizations. What we are challenging is the reclassification of Internet Access being an Information Service to a Telecommunications Service regulate as a common carrier pursue it to 19th Century Railroad regulation. Common carriage is a vestige of the English Common law originally applied to railroad and then Trucking Companies and the two airlines, but its been repealed for all of those industries going on over 30 years ago. Because it produced impose new costs on consumers yet delayed deployment, slowed innovation and really chilled investments. We both agree that Net Neutrality protections are important and thats an important thing to start with but we do disagree with the lawsuit. Weve been very supportive of the rules that the fcc enacted and have now become force of law. We think that after a decade of working towards a way to determine will cycle the in court, that this is the strongest that Net Neutrality protections that we have seen in three different attempts at the agency to ensure that the internet remains open. Tonight at eight eastern on the communicators on cspan2. The head of discover Financial Services spoke with you about changes to the industry caused by technology, regulation and fraud and how those changes affect consumers. David nelms is discovered ceo editors Executives Club of chicago and then sat down for a conversation with the former chair of the council of economic advisers under president obama, austan goolsbee. This is about 45 minutes. Thank you john, for the giunta letter to be here with you guys. We are going to discuss or were going to hear from david about the digitization changing Economic Trends and how these are good impact Financial Services as well as partners, customers, et cetera. Im honored to introduce david. All of you know him already but let me just give you the background you already know. As you know he is a the chairman of discover Financial Services, which means hes responsible for the companys credit cards, Student Loans, personal loans, home equity loans can mortgages and cds money market accounts and Checking Account services. In addition he oversees the discover network, the comprehensive Payment Network post one of the nations leading and Debit Networks diners club international, Global Payments network, and serves as chairman of discover bank, the issuing bank for the Discover Card brand. Before his appointment at discover in 1998, david served as vice chairman of the mdma america bank, and previously held management positions at progressive insurance, ge and bain and company consulting. He is about as degree in Mechanical Engineering from university of florida and an mba from Harvard Business school or in addition to all of those responsibilities at discover he is a board member of epw director and past chairman of the Executives Club of chicago and the Federal Reserve bank of chicagos representative on the federal Advisory Council to the board of governors of the Federal Reserve system in washington. He is also chairman of the board at Junior Achievement of chicago, a board member of the Financial Services roundtable and the member of the Civic Committee of the commercial club of chicago. From 20082014 he was a member of the International Board of the juvenile Diabetes Research foundation. If you cant come he can be chairman of all of those things and you still a very decent guy and so please join and give a warm welcome to david nelms. [applause] with that introduction we are out of time. It is an honor to be here. Ive been active as was mentioned in the Executives Club for many years and so i do know that while the vital role this organization place in the civic life of our city. How fortunate we all are to call chicago our home, even on a very cold day in february. From fortune five Fund Companies to vibrance Startup Companies from worldclass universities and Research Labs to her position as a key transportation hub, chicago has it all. Discovers proud to be a hometown company. We were created out of its ears in 1986 when we were launched with a Super Bowl Ad and that was the year that the Chicago Bears won the game so it was an auspicious beginning. Weve always been based in the chicago area. We became a Standalone Public Company spent out at Morgan Stanley in 2007 and are proud to do 500 companies that are headquartered here in the chicago area. Today i would like to share a few thoughts about the age of Digital Transformation that we all find ourselves in. Whatever your industry and i know theres a lot of Different Industries represented here today, you are likely facing a time of extraordinary change and disruption. Mostly car transactions have overtaken cash as a primary means of payment in the United States but what may be surprising to you is that by next year u. S. Card transactions are expected to be more than double the combined total of all hash transactions. Globally the majority of transactions are still done through cash but the card use is expected to overtake by 2017. The second one we see is that the director banking is here and is the future. The trend is a direct channels such as online, mobile and according to the Bankers Association to direct channels are preferred by the customers compared with over 21 of the preferred branches and 14 that paper atm and many people use multiple channels and as it was mentioned that they are not going away any time soon but there has been a huge transformation in the percentage of people that say they prefer digital and thats what they use more and more on a dalia basis and its only going to accelerate thanks to demographic less hung up on having a brick and mortar location down the street. Many already do their banking through Online Mobile and found. The most significant is the related topic. Everything is moving to the phone. The phone is becoming the access device not just for Financial Services but virtually every other part of life as well. The number of users that the discover has doubled in the last two years and over half of those users are mobile only. The smartphone is the hub for shopping social media, finance, email and texting. Its hard to imagine that some people use it for phone calls. To give you an idea how things are changing consider the open table at. You can make a reservation and pay your bill without ever taking your wallet out of your pocket. You can still use your Discover Card because it is underlining Funding Source but there that there is no need to get out your wallet and handed the car to someone. Im constantly amazed at the apps that are being developed. It automatically sends money to charity every time you hit the snooze button. That will make you very prompt or generous. Either way you are a winner but it is the Financial Service apps up over 50 from last year double the growth rate of social media. Again its all built around the smartphone these devices open a world of opportunities to transform how we engage in commerce and payment. Phones will become accessed in the pointofsale. We are fast approaching the world where commerce and payments will blend as online channel shopping takes hold. Merchants and providers are working on solutions that will provide the customer and experience across all channels including ways to integrate keywords and while the programs. One way that is discovery and amazon partner to integrate the cashback bonus rewards in the checkout experience. Its unbelievably simple when the discover member shops they are automatically offered the option to pay with their cashback bonus. Its like getting something for free and it couldnt be easier. I purchased a fullsize refrigerator paid with my discover cashback bonus and had it delivered without getting the card out of my wallet. Finally theres an explosion in the amount of data available. The digital footprint. Industry players are working to learn more about the behavior and designers and developers more valueadded services. When it comes to the big data hell do we use the data to get the right information to the right customer in the right place at the right time . All of this can feel like a head when your tail when and sometimes both on the same day. Disruption is something that we discover relish we were not born out of the Banking Industry but from the merchants. We built our own network from scratch the only successful one to be built in the last 40 years. We further disrupted by building a card with cash rewards and no annual fee and being the First Credit Card Company to offer 24 mac seven service. Providing that valueadded service was unique in the industry and led to many competitors following suit. Going forward its my job to make sure that spirit that served discover so well continues to drive us into the future. The initiatives the team is working on is too long to detail we are a Customer Experience company. The transaction is just a transaction but for the consumer gets a broad experience that can span months or years. A customer i might buy a product to return it to her three months later or they might not make the final payment for several years so the Customer Experience encompasses many touch points and opportunities to add value including the Research Process relevant offers on the devices that are pinpoint accurate. A variety of options in the pointofsale and the rewards and preemption offers, realtime spending. Behind every purchase consumers consciously or subconsciously ask themselves the fundamental questions. While the Financial Exchange be secure, what if i have a problem its a part of our Value Proposition and we are good at it. Our leadership was affirmed when they tied the highest ranking in the 2014 Credit Card Satisfaction study. So how did we do it and approached the task of the Customer Experience. It is about staying ahead of the technology curve, its challenging and e. Sensual. Its to focus on the sympathy of interaction coming years of communication and to the design and we focus on the website. We became the first card issuer and the first with the login account information. The added value to that customers want convenience and simplicity and connection which is why touch is important. Its about providing health when customers need it and maintaining the option to speak to a live person anytime they want. You might have seen this as the focus of much of our advertising in recent years. These exchanges are important which is why we dont outsource our credit card customer service. When they call they get a welltrained discover employee at one of our u. S. Customer care centers and we take great care to make sure all of our support platforms, call centers systems, email and mobile support work together. Its also about adding value in the ways that the customer isnt expecting. In 2014 related the industry that added scores to all Discover Card members on their statements. You may have seen dot scores as we continue to show how discover treats you. Also in 2014 we enhance what they call the rewards Industry Program making it possible to reading reading the rewards in any amount and bite guaranteeing that they never expire. That brings us to touch. So many people have been affected. A Global Survey showed that 27 of cardholders have experienced fraud in the last five years. One of the most important tasks right now in the Financial Services industry is to address the challenges of Data Security and Fraud Prevention so that customers can continue to use Electronic Payments with confidence. To be sure the transactions still have many advantages over other forms of payment. They can review charges on the statement and are not liable for fraud but we need to do more as an industry to protect customers and we are. This year the marketplace is transitioning. Its a big change. Banks will be issuing 575 million new cars. They will be purchasing about 12 million new pointofsale terminals. Not all will make the transition this year but many will including nearly all of the larger merchants. But its a big change not just for banks and merchants also the millions of customers that see new cars and shop at those merchants. The good news is that it will provide a number of security benefits. It will be difficult to produce the counterfeit cards and if we eventually transition instead of just the signature it will be difficult to use the stolen credit cards in the pointofsale. I should note that there is no silver bullet. Fraud will likely shift to Online Transactions, so the industry is also working on standards and enhanced authentication to make Online Transactions more secure as well. Overall i would say that the industry is mobilized and takes security very seriously. Its difficult to mobilize the entire ecosystem. Now let me spend a minute talking about the Financial Services and the societal issue we are concerned with here. Its the issue of student debt in this country. Student loan debt exceeds a trillion dollars which is significantly larger than the credit card or the auto loan industry. More than 100 billion heart originated every year. About 94 or federal come only 6 or private Student Loans. Thats an important distinction to let me explain. Discover is one of a handful of banks that provide Student Loans and that there are about 2200 nonprofit schools to help fill the gap in funding to assess the personal finances, grants and scholarships. We use the same process as other types of lending so we do not see the same kind of access or delinquencies that we are observing in the federal student loan system. Think about the problems we had a few years ago when the underwriting and mortgage lending led to the crash in the housing market. Federal Student Lending doesnt just have the underwriting. I dont believe anybody is settling them with a chosen school or degree or worse with debt and no degree for students who dont finish college. At the end result is often the default that represents a huge potential burden to taxpayers and the society and impacts significantly the Financial Service industry as well but even more is the impact of the Student Loan Debt on individual consumers. The defaults in the Student Loan Debts are reducing scores for young people. The reason today that serves the graduates with debt are less likely to own a home then noncollege graduates. The most important is underwriting for federal Student Loans and consideration of income requirements for taxpayer backed loans. This closer to the 56 disclosure and colleges also have responsibility. Financial aid officers can be responsible for advising and educating students. Coaches need to better maintain tuition prices and seek the non luncheons for students and perhaps should even have skin in the game for loans made to those that dont achieve a degree. Recent incomebasedbased plants are hoping some borrowers but they treat the symptoms, not the average problem of over borrowing. Discover is doing a lot to help students and parents navigate the world of the financing education initiatives initiative Student Loans. Com youll find a lot more information. Weve the Financial Education and literacy part of our information. We are delighted to participate in the achievement especially in chicago celebrating the 75th anniversary teaching over 500,000 in Financial Literacy this year. Additionally we are well on the pathway to Financial Success program a fiveyear commitment to bring Financial Education to the high schools. The School Districts are covering all 50 states including a 1 milliondollar grant criteria in chicago to the Chicago Public schools. Now let me leave you with a few comments about one final thing. The best way to achieve the experience for customers and the way to leave Technology Capabilities often by partnering with other companies. We are a bank ranging from consumers and merchants yet we choose to partner with others rather than go it alone. We partner with other banks and networks are probable and universities to ensure they are used for the educational experiences. By partnering with others, its grown dramatically the past five years by any measure. The total loans, transactions and net income. The most dramatic is the way that we have grown the acceptance with merchants. Six years ago discover was primarily a domestic card company. You could use the cards at about 6 million u. S. Merchants with patients. Today you can use them at more than 30 million locations in 185 wonder 85 countries and territories around the world. A big part of how we got there is by partnering with other industry players. Partnering has worked very well for discover and for our customers, Business Partners and shareholders has bought and certainly anything we do in the Technology Area involves partnering other companies as low so today more than ever it pays to discover. So financial surfaces are transformed by technology. The explosion of data capabilities can be a threat and opportunity. Being nimble with technology having a Customer Experienced focus is critical. The security is a growing threat not just in Financial Services but all of us in this interconnected world. Federal Student Loan Debt is an issue we need to deal with having unintended personal economic consequences. Finally partnering well and with that i look forward to your questions. I have in front of me a computer you can text. First you spoke about security. We got a couple of questions maybe i will combine into one which is we have heard a number of Security Breaches not a person got your number but the retailers they go through. Helping make the system safe and get partners to improve their security and make consumers comfortable that they are not going to lose their Financial Information or have their money taken . As i mentioned financial consumers are protected but its still incredibly inconvenient and disturbing to have your personal information compromised one of the things that makes it difficult is there are different points of entry. Everyone of them on a potential place to come in. We connect to lots of other financial institutions. Generally speaking the banks have been ahead because money tends to be what people are after but they tend to migrate. Theyve each got their defenses as well but the key is to recognize progress is being made and we will continue to have breaches that will move to different entities. The final thing i would say is you should feel confident theres a lot more protections than cash when you lose your wallet so its the best way to pay but you have to Pay Attention to your bill cometh page engine to the phishing attacks because one of the common methods you dont read about it and you click on the wrong button and suddenly your computer is infected. As rules for the bank and retailers and we all. Weve all got in the nigerian businessmen but theyve investigated and now the new one is in the uk was a guy named marvin king. Decisions as i so she says i was the chair of the bank of england and he talks about how he wants to share some of that with you. So if he sends you an email, dont click on it. They are getting more and more sophisticated. We get notes from some episodes of Federal Reserve. Weve gotten to the point we do education on our people and we send fake emails to see how many people click on them and 30 clicked on them and they get re educated. The two or three questions. Lets call it digital wallets, apple pay come the evolution of the alternative Payment System what does this mean for the credit card industry or the consumers connect for the consumer is going who is going to be an explosion on the payment with commerce and i think there will be integration and simplicity. You click on it and it happens. Generally speaking these new entities all hold Payment Information and they have other capabilities loaded on top so in my perspective none of these entities want to become a regulated bank company but fundamentally every transaction you make goes back to either a bank account or credit card account. So they have to write our rails to get back to those accounts. In the spirit of whats called integration consolidating then youve got the devolution of the internet to the lending club with a client or whatever it is taking a pert little pieces of the bank where they do get into lending or the deep plumbing of the Financial System do you think that would be enabled by the fact they have less regulation or deemphasize Going Forward because its a little more of a wild west environment . I stayed away from talking about regulation but if theres no doubt that the much more extensive regulation is pushing some people out of the traditional system to the less regulated entities and as an example one credit cards they used to be able to get a credit card and they cant do that anymore. They are paying much higher rates at a place with less regulation so here but i clearly have jurisdiction to its easier to regulate its easier to regulate a big bank van is 30,000 payday lenders that can open and shut on the whim so as a society we need to be careful about the overregulation and get the pendulum in the middle and not be so extreme that we squeeze people out of the System People are adopting some of these new wallets and so on those are incremental opportunities but if its going to other places because its their last resort and they no longer can access the traditional system now it means a high minimum and no more free checking that pushes people out. Would you think of the Consumer Financial Protection Bureau . It sounds like you have addressed this issue. Are there other areas in the federal policy with which the rise of technology theyve become more or less effective that the government cant do its job or is better able to do its job because these things have changed . I am not sure that im going to answer that except question but one thing to think about is how much more involved the federal government is in the Financial System in this country than almost any country in the world and that if you think about the fact video and fannie and freddie and its basically nationalized most of the mortgages which is the biggest cost for consumers and Student Loans i mentioned that 94 of that. I havent quite figured out whether china and the governmentowned banks are more or less controlled by the government. We currently do something with fannie and freddie and Student Loans we are heavily government to banks as opposed to the traditional witches and the enterprise so its not a healthy place to be but its tough to find the will to say what are we going to do as an example . So in the Economic Trends trends the one on everyones mind is income inequality, stagnation of middleclass income but the sources are with the future is. How does that divergence between the different parts of the country, how does that affect the Financial Service business . Is it the case that the highend cards are doing better than the low end of this is one area direct banking can help because it is expensive to serve wellbalanced customers and so the prospect he can serve without branches and with much more soap service that is one of the best hopes for helping to keep highend customers and a lowcost method so that is a promising aspect. As the millennialist gain wealth and comfort out the baby down for you gain market share . We are going to put a particular emphasis on students and young people because there are switching costs and a certain momentum once someone has a banking account or they will tend to stay. But young people are used to direct banking and everything in the first place so if you can get in the door with their first account that is what all of us in the Financial Services industry are going to be focused on an event maintaining the people we already have. A couple of business questions how do you budget for innovation and the possibility and size of the payoff and presence of disruption is so uncertain how do you measure are zero i on this . Sometimes it can be easy. There can be payoffs of how many people are going to not be calling the call center because they are selfserving on the website but other projects dont lend themselves to that. One we had to take a leap of faith and put in the technology and put you canceled its going to cost systemwide and a other phone call because it will generate a call when people say why is it going up or down but theres a number of things you have to take on faith. We do have a history of being first. Years ago as an example the first to start sending email alerts when you are about to go over the limit. This is going to hurt my late fee income why would i do this but we felt we would get enough to offset the immediate costs so if you look at the big picture outcome the average is eight years thats part of why the credit was better because the customers perform better so sometimes its a little bit like advertising. You have have to look at the overall measures and use some judgment but its a very important thing to try to prioritize and not just to do things that have an easy roi. As an executive one person asks how have you organized your leadership and team around at the Client Experience and another asks as a ceo what can people do to keep the culture of life in the organization . We are organized pretty traditionally. We have traded to have centers of excellence. They showed not only the credit card but the network into Student Loans and other businesses and i think we are all one company lets not get hung up. It is the same way to but they very much feed their clients controlling what they do. The key is a lot of communication and a lot of seniorlevel involvement and i dont mean senior people making all the decisions but typically you need someone senior to make the call we are going to paradise this project over that project into so a lot of collaboration. Its hard to say how you get a culture that it takes a great culture and that can create that innovation. Are you concerned about the ability to stay in illinois given the estate tax structure and deficit . They will open up because they are anonymous. I think chicago is our home and from the citizens perspective i am concerned about the current fiscal state in our state and i am concerned about our ability to attract new businesses and maintain other businesses. Many of our employees have spouses. So if the Spouse Company moves up i may lose an employee so we are all affected by whats going on and i would like the statistics in the state havent been good because its covering on the debt ratings and we have to fix it. Weve been strong in the past and we need to get back to not being worse than california. [laughter] how would you advise the governor on funding, financing and power towards the states Higher Education Universities Community college . I certainly think that in general theres been a big withdrawal in funding across the country and that is part of what has led to the huge increase in Student Loans i mentioned before so i think prioritizing education. I cant speak specifically about funding but generally education has to be one of the best investments we can make as a society and the government as well as individuals and we have to spend about smaller so i am not close enough to know whats going where but my observation is the schools are putting too much into infrastructure overhead sometimes because people will donate for a building thats intuition that we have to make sure that its going to educators and the basics. Generally speaking, i think that investments in our Education System will with payoff because we we are contracting employers and have a capable workforce and in terms of growing our economy. That is a great place to close and that is one of the things i agree with you 100 . This has been a great discussion would you like to make any closing thoughts or points to the audience . I just think that its an exciting time to be in the business. A lot is happening in technology with the changes with consumers and the ability to reach customers in different ways. It can be overwhelming. Ive always been a direct company that used to be the telephone now you just struggle to stay on top of the emails and chat and mobile. It requires a a lot more of all of us. We have to keep educated and keep Getting Better but it also opens up the world of new opportunities that didnt exist and that is exciting whether you are in Financial Services or any other kind of industry. Please join me in a round of applause. [applause] spinnaker the democratic candidate in New Hampshire this week making several stops. Today Hillary Clinton is visiting a family owned Business Holding a roundtable discussion. We will have live coverage at one time hundred 45 eastern scheduled to start in a few minutes on our companion network cspan. The former first lady will be speaking with students and teachers at that institute in concorde. The candidate was one of the topics of discussion at the gop person and nation leadership summit over the weekend in New Hampshire. We heard from the cochair of the rnc. This portion of the remarks is about ten minutes. [applause] thank you for the kind introduction and i also want to congratulate jennifer and her staff for this unbelievable events of what we have witnessed here. So my fellow men and women that are here and i also want to thank everyone for their efforts but the job that we have to do is you in this room we have a lot of work to do and we know we have a lot of work to do but it is my honor to stand with you today and ask you to join me in a very loud voice we are here and we are ready to stop Hillary Clinton. [applause] this country deserves better then a president that in every turn of her career has been involved in some sort of scandal or effort to cover up some sort of scandal or some sort of secrecy. Thats Hillary Clinton and thats the reality. When it comes to Hillary Clinton we know these are the things that define Hillary Clinton. This country deserves leaders that are not afraid to answer the tough questions and we see in every single turned over a clinton wont even answer answer the simple questions like why did she really use a private email server, but did she ever accomplish at the state department and where was she on the night of benghazi. If you believe the staff they will tell you shes trustworthy and msnbc they will tell us that shes looking out for the little person and the ads will say that shes relatable like going into a restaurant with sunglasses on and never shaking a hand so it is up to us as americans to tell the story of the real Hillary Clinton for example she says on womens rights but she stands for womens rights but the real Hillary Clinton accepts donations from Foreign Countries that oppress women. She says that shes for equal pay she paid more for the men in the Senate Office and then she did the women. She says that shes in touch with the middle class and she cares about income inequality but the real Hillary Clinton that we know the mans private jets, charges the public universities 300,000 for a speech and thinks she is dead broke owning two houses. She stands in front of womens groups across the country and state how much she stands with women, she states how much she cares for women and how much she is fighting for womens equal what he and accepts the shiny award and get on a jet paid for by the Clinton Foundation and also paid for by individuals that gave money from government like algeria and saudi arabia countries that we know in her own state department note this treated and discriminated against women. Hillary needs to stop hiding. She owes america real answers and the voters answers to our questions and or concerns. This is the reality we face. This is the real killer he clinton and she would be terrible for our country and for our future. [applause] so while the democrats are getting ready to coordinate their democrat Hillary Clinton we have seen this weekend our party is going to have a competition of ideas and of solutions and i think thats healthy. The sign of a growing and energetic party like ours, the Republican Party is what we have seen here this weekend and i am proud of our bench and that the voters are going to have an opportunity and a choice to answer the tough questions and get their voices heard. As a woman i hope one day we do have a woman president but im going to tell you right now its not that candidate and its not that women. [applause] and if we think its going to be easy to stop her with all the things i just said its going to take a lot of work. Ive been a grassroots activist for over two decades so ive been around long enough to learn a few things and one of the things i have learned is that they will do and say anything for profit and power. They will do anything to win and they will act in any way to justify the end that gets them what they want. We all know the stakes are high. There is no question about that in our mind and i want to encourage each of you in the room to stay engaged to be part of the solution. Find a campaign or office in the community and then volunteer and bring a friend, bring your neighbor, bring your family. Go to gop. Com and use all of the resources we have developed and while you are there join me in a sign that petition to stop Hillary Clinton. America needs you. We need you to get involved and to be engaged. As Ronald Reagan once said freedom is an obligation responsibility. Its never more than one generation away from extinction. We didnt pass it on to our children in a bloodstream. It must be fought for, protected and handed on for them to do the same or one day we will spend our sunset years telling our children and our childrens children what it was once like to live in the United States where men were free. All of us in this room, each and every single one of us have the responsibility to do what we can to secure a Better Future for this country. We got to our founders and to the individuals that gave us this Great Republic and entrusted us to keep it and protect it. They placed it in our hands to continue with its next generation. We await our children and grandchildren. I have two grandsons, three granddaughters and i want them to grow up in a country where anything is possible just like its been for you and i. I want them to know they can do anything they want with their life and not just what a federal government allows them to do. When i go to the voting booth and not thinking of myself im thinking of them and about which party will protect them and the threats at home and abroad and which party will expand the freedom for them to pursue their dreams and i vote confidently and proudly for the candidates because our party has the right answers and solutions. Our party has the right way forward for the next generation. [applause] i hope when you leave here today you will leave with a renewed purpose knowing that we dont just have to hope for a Better Future but that together we will build a Better Future and continue to make america strong and a beacon of hope in a country where every dream is possible for every child and no dream is too big to accomplish and where to get her we show the world that america is still that shining city on the hill everybody can be inspired by for a better way. May god placed each of you and our military men, women and their families and may god continue to bless this our country, the greatest nation in the world our United States of america. God speed on the journey to get there and cost plus. [applause] is the most prolific writers she provides a window to the colonial america and personal life. Out of jail at arms. Influence and image examining the public and private life of those that fill the position of first lady and their influence on the presidency. There are the iconic american women providing stories of the fascinating when in creating an illuminating entertaining and inspiring read. It is by the hardcover or ebook through the favorite bookstore or online bookseller. The senate will dabble in in a couple of minutes to oclock eastern on cspan too expected to continue work on the bill dealing with Human Trafficking that measure that would increase penalties and create the fund for victims has been bogged down on money spent on abortion services. Leaders say they are close to the compromise and they will learn more when they gavel lane in just a few minutes. We have an indepth look earlier this morning on the washington journal. From this morning is the staff correspondent at for the National Journal this week in washington. We look at whats happening on the floor in the house and the senate. They are coming in this week in the same position that they were last week they still have the Human Trafficking bill holding them up at some point and they are still looking at the Iran Nuclear Deal. Its going to be the beginning of the series and all of that probably this week this afternoon as they did thursday afternoon. The house is looking at cybersecurity legislation to build boats on the off the floor the house and Senate Negotiators are meeting today on the 2016 budget. What are they looking at right now and how long is this process likely to take . Thats a good question. At this point theyve already missed the april 15 deadline. The budget document is more of the recommendation and the chance for the Republican Party now that both chambers layout of this is our fiscal position and for the party believes it should be doing in which direction we should be headed in. Because of that, they do have a little bit. The house budget document is not that different at this point. One of the big arguments that we are seeing is what they will end up doing in the reconciliation. We saw this done towards the house and left that much more openended and gave a lot of the committees of jurisdiction so we will see who prevails in that argument. So they want to choose the budget to deal with obamacare of the reconciliation process to try to repeal it and republicans in the house are from different camps . They tried to repeal obamacare dozens of times in the feeling that feeling we heard from the folks in the house, the president is still in office and is just going to veto that legislation. Maybe we should try to use the reconciliation process for something that sends a stronger message with regards to what weve tried over and over again and there has been talks about a variety of other ideas so the Senate Republicans push this in the first place and their feeling is that this is our number one purity. Yes it is probably going to be vetoed so lets send the strongest message possible. On the Iran Nuclear Deal last week it overwhelmingly was approving that legislation that would allow the congress to review any deal you said that they need to deal with the trafficking bill first before they can move on to the other bills but where does it stand on this legislation in the senate . Are democrats are they on board . It very much looks that way. There theres a number of other democrats are supportive of this and it is something that is going to pass very easily this week and then the big question becomes can congress have any legislation either approving or disapproving of the deal, this bill gives them the opportunity to do that with 30 days to make a decision about how they feel about once the bill finalized and if they do nothing which many senators vote that is what we are best at, then it would be approved by congress. Also in the paper is the story about trade. Where does the vote on fast track stand . It is another situation where you have democrats the vast issue and then the white House Democrats like ron wyden that helped write this bill on the other side the deal was announced at the end of last week looking this over and getting a feel for it but it does seem like there theres a lot of democratic opposition to the bill so thats going to be interesting to see if the republicans can cobble together the coalition where he appears interested in signing up. It looks unlikely in the senate this week and the house has their big security and that we have to wait until next week for the calendar. Sarah, National Journal staff correspondent or he thinks. We appreciate it. Thank you. In the senate we could see see work on the antiHuman Trafficking bill and the house coming in for a brief pro forma session dabbling in tomorrow at 2 00 eastern and working this week on the Consumer Financial Protection Bureau into cybersecurity. Also today at 3 00 the house and Senate Conference Committee Meeting at 3 00 on cspan. The senate will come to order. The chaplain, dr. Barry black, will lead the senate in prayer