Transcripts For CSPAN2 Treasury Secretary Testifies On State Of International Finance System 20170729

Hensarling the meeting comes toorder. The chair is authorized to call recess at any time and members have five days to submit records. The hearing is for the purpose of receiving the secretary of treasuries annual report on the state of the International Financial system. Before proceeding to that report, i will give you a report on the hollings worth family. Joseph albert holingsworth arrived this morning weighing in at 7 pound, 15 ounces. Mother and baby are doing well. Husband and father is a total wreck but congratulations to our colleague tray hollingsworth. [applause] we will give him an excused absence from this morning. We welcome secretary treasury steven mnuchin. As we know this system rest heavily upon your u. S. Financial system and that system clearly needs improvement. Fortunately, President Trump has outlined a bold, forward looking plan to tackle the Serious Problems facing hard working American Families who have seen their pay checks stagnant and dreams diminish. The economy is nut not close to reaching its potential. Americans remined stuck in the slowest recovery in generations. Our economy grew at a measly 1. 6 when the historic norm is twice that. Clearly, eight years of obama numics has taken a toll. One place it has taken a toll is the competitiveness of our capit capitol markets. If the United States dropped to 17th in a recent world ranking of Economic Freedom. A historic low for nation. This is based on investment freedom and financial freed and Economic Freedom. The Economic Freedom of a number of International Competitors have grown. Z have faith in the spirit of american entrepreneurs and businesses to make necessary risks in growth but todo so the unaccountable washington burr must be held accountable. Our economy will grow healthier for all. The president s executive order establishing the score principles for regulating the u. S. Financial system is vitally important to us all. As the report nets, we have nut empowered americans to mick independent decisions in the marketplace. Save for retirement or build individual wealth. We have not mirrored companies to be familiar with foreign mshth markets. From helping in bank bailout, to tailing regulations for Community Banks and Credit Unions, your recommendations help craft a better regulatory system. The steps you are taking to make sure the competitiveness of the Financial System is a welcome containing change one i fully support. I now yield four minutes to the Ranking Member for an Opening Statement. Thank you very much, mr. Chairman. Welcome, secretary mnuchin. As secretary, you have a wide range of spikts that are of great importance to the economy and American People. These range from safeguarding our Financial System and regarding u. S. Values internationally. It collects and helps Law Enforcement curtail the activity. It is critical for the American Public to learn the extent for which President Trump, his immediately family, and his associates colluded with russia to influence the outcome of last years elections. Serious questions have been raised about suspicious arrangements and involvement with russian government officials, oligarchs and organized crime leaders as the committee of jurisdiction has their own share. You as secretary will assist the committee in fulfilling oversight in assessing President Trumps entanglements are russia even though you indicatedia do take requests from members of Congress Seriously you did not respond to a may 23 rd letter from me and my democratic colleagues requesting copies of all Railroad Records related to the business ties to russia as well as those of his family members and associates. I understand your staff did call yesterday afternoon while preparing for the herring but i am looking forward to hearing directly fromia about thisimateer today. There are also other areas where i have serious concerns. In june, the treasury released a report that recommendations that largely mirrored the wrong chase act and you recommended gutting the Consumer Protection bureau and rolling back doddfrank reforms including rules in place to ensure the stability of our Financial Systems like stress tests and living wills. These recommendations are deeply harmful and short sided giving the progress we have made. One west foreclosed over 36,000 families in california, this president has selected numerous one west officials including you to fill government posts for example joseph outing, affin a former west employee has been hired. Democrats are concern said about a Justice Department settlement with one west. I look forward to hearing from you and what you have to share with us today. I yield back the balance of the tim. The chair recognizes the gentlemen from kentucky, mr. Bar, chairman of our subcommittee for two minutes. Secretary mnuchin, thank you for your service and welcome it your first hearing on the state of the nnl Financial System. As chairman of the Monetary Policy and trade subcommittee which has jurisdiction over international institutions, sanctions and Monetary Policy, i think you are off to a great start. A bill was passed to empower treasury to give muchfeneeded reform. I thank your staff for having worked with us so effectivery on this legislation. Were also looking forward to the positive impact you can have. I would urge you as lead member of ssock to address the extent to which Monetary Policy and the four and a half trillion Balance Sheet continued to distort decisions and enjoying a faster and complete recovery. Robert caplin recently wrote there is a cost to excessive accommodation in terms of limiting returns and creating distortions and investigating and hiring decisions. Monetary policy accommodation is not costly. Perhaps the greatest threats we face are the threats from terrorism around the wormed. I hope to continue to work on key proposals that thwart violent extremism and counter states like north korea and iran. I want to applaud your work in the june treasury report. These reforms allow firms to land an additional 2 trillion in the economy. Again, thank you, and i look forward to your testify. I yield back. The chair now recognizes the agenda gentle lady from wisconsin, ms. Moore, for one minute. I am so disappointed you and the Trump Administration disclose the doddfrank and the treasury fined the agency for a crooked deal while secretary tillerson was the ceo. I heard from state officials that section 1502 conflicts provisions were working just fine. I look forward to your testimony. Young lady yields back. Today we will welcome the testimony of the honorable steven mnuchin. Since this is a new administration and the first time that we have had a cabinet level official testify before our committee i thought it would be prudent to review the committee and house rules on decorum. Members are required under the rules of the house to observe the principles of decorum and courtesy set forth in rule 17 and related provisions in jeffersons manual included by speaking and acting respect ffuy and refraining from language including applying a lack of intelligence. And i would add over the last two years my colleagues on the other side of the aisle have expanded upon the principles on the record to say that no administration witness should be quote unquote badgered or subject to quote i got you politics. The Ranking Member and other democrats on the committee have also said no administration witness should be talked quote to badly, no administration witness should be interrupted, every administration witness should be quote treated fairly, every administration witness has quote right to be able to respond and finally my democratic colleagues every administration witness should be treated with quote acceptable standards of dignity, propriety, courtesy and decorum. Steven turner mnuchin i have a parliamentary inquiry. I would like to know if the witness would like to be sworn in . It is not our custom to swear in administrative witnesses and we didnt with the obama administration. Mr. Chairman, since you took time to talk about how we should conduct ourselves today i would like to remind you and your colleagues how you treated mr. Cord ray and i never heard you take time out to talk about how members should conduct themselv themselves. I would like to make sure i understand you do not wish to swear in this witness . I believe in my tenure we have sworn in one witness. This is the first time Steven Turner mnuchin has appeared. He was sworn in as the secretary of treasury. He was born and raised in new york city and holds a bachelors degree from yale university. He has retail and Banking Experience which he brings to the office in which he now holds. Without objections, the witness written statement will be made part of the record. Secretary mnuchin, welcome to the first appearance before the committee. You are recognized for five minutes to give oral testimony. Thank you very much. Chairman hensarling, Ranking Member waters, and members of the committee i am pleased to be here today and look forward to discussing the important issues for the American People. I would like to begin by addressing treasurys National Advisory committee report. Treasury uses its leadership role in International Financial institutions to help ensure they are carrying out the core amendments. The treasury is focused on keeping the International Financial institutions as cost eeffective as possible. We press on the need to investigate global imbalances. This holds the ims administrative budget hardly flat in real terms. Where it micks sense we will retain a top donor and share holder while addressing priorities across other parts of the government. We will continue to promet access to Economic Opportunities to eliminate poverty and build shared prosperity. When the world is prosperous and stable, america reaps the benefits. I would like to hospital our domestic reform agenda. Let me begin by congratulating the committee on its passage of the choice act. The administration supported house passage of this legislation and we will work with congress to reform the financial regulatory system. Years passed since the financial crisis and this has given us time to see what has worked and what has not. The administration is committed to robust Financial System with a free flow of credit that fuels the engine of american growth. This means allowing community Financial Institutions, friends and Small Businesses access to barrowing. In june, treasury released the first in a series of reports in response to this executive order. Our first report showed Economic Growth and the report focused on regulatory action that can be taken by the executive branch it included a number of legislative recommendations to appropriately align the Government Institution with the president s Core Financial institution. One is tailoring requirements for small, midsize and regional banks that pose little or no risk to the Financial System. The third is a regular to the complex vocal rule. Fourth is statutorctutory chang make the bureau more accountable. We can implement regulatory reforms and legislative remedies for the benefits of Community Banks and midsize institutions. This isnt sustainable and leaves taxpayers at risk. Our Housing Finance policy should be clear and designed the other critical component is tax refirm. We have gone too long without addressing our tax system. Our business rate is one of the most highest in the world and makes businesses less competitive and we are committed to changing that. Lowering the rate and bringing back trillions allows business to invest in this country spurring Economic Growth. Another important comment of strong and robust systems is stopping bad actors and those who finance them. I would like to acknowledge the combat effort to finance trim. Our weapons that are needed to combat them have changed. Our office of Financial Intelligence is ready to work with this committee and i am looking forward to working with chairman pierce and Ranking Member to create historic opportunities for American People. I look forward to working with you. Thank you. Senator yields himself five minutes for questions. Mr. Secretary, you are probably familiar with infrl reserve report in 2016 dealing with the rule that equity of the bond increas increased. You know the director of monetary and Capital Market provided another critique of the rule saying it can impact the ability of institutions to supply credit. We have a recent study conducted by the bank of england saying in their stress simulation material increase in spreads in the Corporate Bond market and in the extreme Corporate Bond market dislocation threatens the markets. As head of fsock, what are your current concerns on the state of Bond Market Liquidity in general and in specific . Thank you very much for that question. Let me acknowledge i see you have the debt clock and hopefully i get out before it knows to 20 trillion. As it relates to your question about the rule, i do share your concerns. I think the biggest problem with the rule is it is complexity and regulatory overlap. It is our attempt not to have proprietary trading with banks, we need to make sure banks understand how the regulation work. Rece recently i was at a g20 meeting and we had economists that came and talked to us and said every trading desk needs a psychiatrist and lawyer to determine how to apply the rule. In any event, as my role of chair this is one issue i am working on and pleased to report we have done preliminary work on it. The regulators also share these concerns. We have it on our agenda tomorrow for the meeting and we will be addressing how we can deal with the regulatory overlap also mr. Chairman as you do know in our report on the executive order to the president we also made concern suggestions for legislative changes to that. Thank you. Mr. Secretary, particularly those on this side of the aisle, we very much deplore what is happening to your Community Banks and Credit Unions. I know some on the other aisle say there is no regulatory problem but in your report and testimony today you mention the term tayloring. Whau are you considering that you can do in the administration to better taylor rules to your Community Banks and Credit Unions . Mr. Chairman, thank you for that question. Let me first say, we are very fe focused in making sure community and regional banks grow. They account for 50 of the assets in the American Financial markets and that is problematic. What we want foodo is make sure there is robust lending, particularly in Community Banks. I have met with many people, these are not republicans or democrats. These are hard working Business People particularly in agricultural communities, particularly in small manufacturing communities that constantly complain that the Community Banks are nut able to lend because they are over burdened by regulatory issues. And i firmly believe that Community Banks no how to make loans. Let me say they should be regulated and cant strive. We are very focused on raising the burden and look forward to working with the community on it. The treasury report recommended raising the threshold for the application of the standards raising it from its current 50 billion threshold to an unspecified amount. It appears that changes can be accomplished without legislation. What did you believe the threshold could be increased to . Do we have your commitment to imelement these changes . Mr. Chairman, my understanding is there has been bipartisan discussions in raising the limit in the previous administration. I hope this is something we should accomplish quickly. I think it should be raised substantially to at least 250300 billion. I would go further saying that and be exement. They will be regulated by properly. I yield five minutes to the Ranking Member. Secretary mnuchin, i want to mock sure that even though you are not sworn in do you realize you are under oath . I do. Thank you. Thank you very much. Are you familiar with the may 23rd letter i sent to you along with several of my democratic colleagues on this committee . Yes, i am. Do you understand this committee oversees the financial crimes . Yes. Given we obtain these records and your departments statements that the agency takes responsiveness to congressional request seriously and is considered to providing appropriate responses from members is there some reason why i did nut get a response to the letter i sent may 23rd . So, Ranking Member waters, first of all let me thank you for your service to california. Being a resident of california, i appreciate everything. Thank you very much. I dont want to take my time. Reclaiming my time. The time belongs to the gentlelady from california. I dont want to waste my time on me. I want to know about the may 23rd letter. Yun about you know about it. Why didnt you respond . Mr. Chairman, i thought when you read the rules you acknowledged i should not be interrupted. What he failed to tell you is when you are on my claim i can reclaim it. He left it out. I am reclaiming my time. Please, respond to the question of why i did not get a response, me and my colleagues to the may 23rd letter. I was going to tell you. Just tell me. Let me say the department of treasury has cooperatcooperate the senate intel committee. Reclaiming my time. Mr. Secretary, the time belongs to the gentlelady from california. Perhaps mr. Chairman i dont understand the rules. Please explain the rules and do not take that away from time. We will give the gentlelady adequate time. I read statements of the Ranking Member and democrating colleagues on how administration witnesses should be treated not necessarily the way they will be treated. So the time belongs to the gentlelady from california but i assure you majority members will allow you to answer the questions when it is our time. Involve a russian persons today have a legal obligation to report that . Rick guess of a u. S. Institution has any specific suspicious activity they arent required to file. Day have received reports of suspicious activity of potential violations of sanctions involving President Trump would you share it with the Justice Department the special counsel or other officials are wait until you receive a request from lawenforcement . I cannot comment any specific actions because they are confidential but donald trump is no different than anybody else. And with this special counsel and other officials injuries a request and to respond to those situations and to cooperate extensively with those three other committees. If a close advisor of the president is investigated for Money Laundering with your department would accurately seek from foreign Financial Intelligence with the way until a specific Law Enforcement request came in . I will not comment on a hypothetical situation but it is no different than any other situation. Respectfully request to ask for in additional five minutes to read printed. And asking for specificity but the way you would handle these questions and i have presented year. I will continue as a Treasury Department employee are you aware of concerns the of the relationship between President Trump and russia . No. Nobody has expressed those concerns. If youre the finance chair of those illegal in kind contributions will you recuse yourself . I amado where nor have i recused myself on anything at the moment. With that red line on his investigations President Trump made it clear he considered any investigation by Robert Mueller and a red line that should not be crossed so have you had any conversation with the president or any official at the white house that it was directly stated or implied with any investigation in some way be crossing a line . President trompe made it clear he considered any investigation into the personal finances daybed line that should not be crossed . Have you had any conversations with the officials at the white house that it was stated or implied supporting investigation would be crossing the line . With that Foreign Investment committee. So that evaluates those u. S. Businesses to determine whether that undermines the National Security. From Jeff Sessions to Robert Mulally two Robert Mahler to do is call me so how do day preview those assets to the foreign entities by the Top Administration officials . With the sale of assets by the committee shares director with the president s son and what sudden loss so in the event that indicates the foreign entity may seek to unduly influence u. S. Policy even if doing so may jeopardize our position as secretary . Director will assure you i take this position and seriously i have not have anybody in any way to force me in that position in nor would i let them. And i use my judgment. As i understand it to have not matter under consideration. So i think those that all actions are confidential that is inappropriate for me to comment one way or another. Is that true he was considered for a position in the administration but he could not go for word but now he is in the administration to influence that decision . I wanted to a knowledge i am not making a comment but alsace was aware he was ever considered within the administration for a position. I yield back the balance of my time. Mr. Chairman and secretary mnuchin welcome to the committee. We sent you a letter last week with the ongoing comprehensive battle with china to ask you to address mark asked access issues lifting the equity caps although the chinese banks have no restrictions but those that unfairly disadvantage american firms. What is the next step you plan to you take to lift from American Companies . So i have had the opportunity to meet with President Trump and the president of china twice and we just finished the conference of economic dialogue president chub is very focused on having a more balanced economic relationship with china and to make that very clear in to see in the of press release that it is the shared goal to fix the trade deficit United States has a Significant Competitive advantage with those services in general one of the areas of the trade surplus and it is extremely unfair that the Chinese Companies are said to subject to security reviews but as you have said our companies in china that we have seen most recently that apple will share the i Cloud Business the key part with a Chinese Joint Venture partner. This administration is fully committed to make sure American Companies and workers are on a level Playing Field. And with that equity in with respect to the efforts that they have engaged in and that implementation the Treasury Department despite the fact those associated services that only spellout warranty maintenance and repair services. What also those Treasury Department authorizes u. S. Banks to finance the sale of the aircrafts. So this airline flew from that j. P. Co pay day as an airlift of the korean regime atrocities so can use certified today that iran air has ceased all activities and if not will they be designated the airline that has been allowed under the jpcoa . Specifically on i ran with this public format i know what to comment specifically we do have intelligence information to share with you in a private setting. But what i would say that to be responsible for granting licenses with boeing and airbus and that is under review under the National Security review under the jpcoa. Mr. Secretary i asked your predecessor end with those liquidity departments into undermine the Financial System. In to say that is a Market Structure do you agree disagree with your predecessor . But i do have a firsthand experience in the trading and advisement markets and absolutely i agree with you that the local in particular cater in particular has liquidated the liquidity and that is something i very focused on. Your time has expired now we recognize to republicans in their row. Before getting into my observations my friend from california that the questions were edging towards of violation of the psa. And then to release that natalie releases up process but again it looks very close to a violation. I appreciate your willingness to hold that position with a delicate balance. So those that our real threats to the nation so even with these major threats you dont lose sight of the of mission talking about the Financial System that fuels the engine of america. And at the end of the day that is what you are here for. But you are not losing sight of what makes this country work. Their work with congress and the president and the of military the major activity is shutting off of funds for number three and and iran but also the financial activities and evaluated and then to step up and says how do we modernizer update and with the robust movement. And how we keep ahead of that threat. First of all, i do of knowledge your concerns. My number one focus is Economic Growth on tax reform and the number two focus is 50 percent of my time on sanctions with the terrorist financing issues and using technology is very important we will use all the tools in the toolbox to set up a terrorist financing unit working with the arab partners and i firmly believe it works with iran. Causally working with secretary teller said secretary to lessen the with the approach to stop terrorism. What can we do more here . So tell me what we need if we need resources . We do need more money for the terrorist Financing Center but we can talk about that later. Mr. Secretary you wanted to make responses earlier we can go into depth when youre not allowed to be for and with that regional banking and then appreciated and what i was saying in my opening remarks. I think from my perspective if you can keep the focus on the u. S. To get access to new credit like financing terrorism. Mr. Chairman and mr. Secretary am deeply concerned about terrorism of financing during the confirmation hearing the agreed the antia Money Laundering efforts is a challenge. En those that utilize the Financial System that could be a real vulnerability with that actors that can exploit. So if you are willing to work with congress and those that impacted and then to address that challenge. We are reducing a bipartisan bill with the corporate Transparency Act requiring companies do you disclose at the time the company is formed and viscerally be available for lawenforcement and Financial Institutions but if my it is the treasury responsibility as a backup. So reduce support requiring companies to disclose at the time the company is formed with suggested legislation . Thank give very much for that. Now and the stand this issue much better than my initial confirmation i have spent a lot of time looking at this internally it is a concern that the g7. But the European Partners are concerned i am looking forward to working with you on a solution and i hope this could be bipartisan. It is complicated. En to seeing how that has maintained after all in the ownership has moved one hour later they and somewhat concerned up of treasury to be the era of to be the repository for crowfoot spirit we have numerous in this issue came from lawenforcement and certainly lead is a tremendous step to combat terrorist financing which is a huge concern to the entire country. Also asking about the debt ceiling will fade back to whatever the of uh Political Drama and ted has substantially raised with the shortterm borrowing in treasury and though shortterm treasurys at that time because of the shift toward the government money market funds is that causing distortions of the market and to bar what bill lowest possible rate. And i. M. Very focused im encouraged like this before anybody leaves office said yesterday in my testimony of alerting congress the special powers will be extended. My time is almost up. And treasury were to reach the debt limit of the government obligations would this be a default . The but i have no choice to prioritize again rigid honor all the obligations. The gentleman from missouri. Faq for being here. And also it was a tremendous effort and no one to follow up on my initial question with regards to basically those of her systemically important in because of the problem with the arbitrary nature of the process i am still perplexed but for now. But h. R. 3122 with that designation the bill removes that 50 billion threshold that was discussed with you a moment ago there reflects the systemic importance. And that does the analysis of this assays times and effort effort to monitor ready is part. Some of these big Community Banks still leave a more riskbased analysis . Fox of we have the floor that is not subjective and with that risk analysis. We will pledge chart of here with cybersecurity and that reminds me of the toy that i had is a kid that gives you a headache to look at but mr. Secretary you ed dressed that subjects with those different agencies and to stop that duplicity of the regulators but i wonder as the chairman that is a great position to bring all this together in then to do pac that regulatory relief for the banks would you like to comment . And then to see this in more detail i share their concerns. And with the cybersecurity already working with the regulators have to consolidate their resources and cybersecurity is one of those biggest risks to make sure they consolidate those resources in a way but not for the lifetime independently with the bank. With those guidelines and principles is a good place to start some of the banks get a mixed message. I can assure you we are working on that. This is something were dealing with for a long time are you familiar . For those own set of values to match up with their own and i am concerned quite frankly and to back off on this problem for a while and your commitment to worker was something with us and youll try to stop the nonsense but there is another administration down the road there is a set of guidelines in place. Would you help us. Absolutely i commit to working with you. We now recognize the gentlelady from new york. For merck secretary lew imparted legislation with those necessary tools to restructure and prior to his departure that it was important to continue that situation for puerto rico successful recovery. Logos are the Policies Initiative but in fact, senator grassley restated that Bankruptcy Authority alone could not stop the problem. There was a simple solution. 400,000 Puerto Ricans have left the island in the last ten years. We have three doctors leaving the island every day. I am happy they are coming to florida and ohio. Politically speaking it will be good for democrats. But i want to give the option for the people of puerto rico to stay there if they chose to. Puerto rico is under territory cross. It means it is a colony. We, the United States congress, have the responsibility. I want you to commit yourself that you will guide your staff to look at the Viable Options c including the use of the funds to help breach puerto ricos immediate needs. I am not going to commit to use any specific tools such as the exchange fund. But i can commit to you easily because i have done nis and will continue to do it. We are working closely with lots of people on this. As i said, it is a very complicated issue. So we are trying to balance what a solution would be that is appropriate. So, i was a member of the task force on puerto rico to promote coming growth. Would you assign a stop or provide a stop that has been assigned to monitor this equation . I do. We are happy to followup up and have them meet and get your thoughts. Thank you. We wrote a letter encouraging you and President Trump to reconsider decisions. In june 2017, your own pressure report states that they are often the only source of credit on Financial Services in low income urban and eliminating the funds. Thank you for asking me. I had there opportunity to talk to the senate about the same issue. According to the cdfi program, i think it has been effective. Having said that, dwi had to make difficult decisions in the context and there overall was to get to a balanced budget and Fund Military expansion which is muchneed. This was just a difficult prioritization we made within the program. As part of the finance record, we recommended a review of the Community Investment act and make sure we meet with consumer advocates and Community Members to ensure that money is being used properly in communities. The chairman recognizes the chairman of the market subcommittee. Secretary mnuchin, appreciate you coming and being in front of this committee. As tempting as it is you see others dont want to talk anything other than the economy and it is tempting to talk about Samantha Power or Hillary Clintons illegal use of email as secretary of state or director comey illegally releasing classified documents or ukraine medling in the election and i think it is a waste of time. I am wondering what do you view as the most urgent priorities needed to address and restore confidant and create more opportunities in our economy with our Capital Market system being chairman of the capitol market committee. Interested in that and effects of doddfrank. I would just say as part of doddfrank our focus is community and regional banks. I think the other is reform and making sure banks that make good mortgages and want to keep them on the Balance Sheet they can. And i think the role is a big concern in that we can have property monitoring of eliminating proprietary trading with managing liquidity. And i know you laid out various items. Anything specifically in doddfrank you think as a committee we need to address . The long list we outlined. The number one thing is probably to raise the limit as we talked about. That is helpful. As has been expressed by a few others, i believe the rule is partially to blame for the diminished liquidity in the market. This is 900 pages and just over 300,000 words. It is not an easily digestible. I know you have a heart playing out a number of things, 19 thinks that could be used for improving the rule. We repeal that and that is my preference. There are 11 regulatory suggestions for providing immediate relief and that is from the federal reserve, the fbi ic, cftc, and the albeit alphabet soup of regulators. How soon can we expect to see relief without the legislation backing it up but from the regulators themselves . Well, i mean i think as you mentioned in your legislation you have repealing it and we dont object to that if that is what Congress Wants to do. I dont think the rule is what created or the lack of it is what created the financial crisis. We are focused on how to fix it and these are active discussions on what the financial regulators about what we can get a consensus to depict. They have the immediate ability to flip a switch and we are hoping to do that. Chairman bar talked about the iranian exports and the former chair of that committee in the last term and i am curious if there have been other Financial Institutions that have been in contact with treasury with respect to aircraft exports to iran . I cant comment on the specifics that are private but i can assure you we are on top of this. The chair recognizes the gentlemen from california, mr. Sherman, for five minutes. I want to get one thing clear for the record. Mr. Chairman you began by quoting people saying we should be nice to witnesses and i think it is important the record reflect that no comment about being nice to democratic or republican witnesses every came from me. You talk about Small Companies being able to make business loans. That is not a reason for us to take the giant banks off the hook for regulation. It is there near collapse that nearly collapsed the economy. It is the reason for you to deal with the occ which is under your jurisdiction and have them when they audit banks and those banks have a prime plus four or prime plus five loan to a company that is just a little shaky that they have a reserve of just an extra 12 percent rather than 3050 . You, mr. Secretary, could do more than any of us to get Small Business loans made by local banks. The debt clock has been behind you. You commented on that. I would hope any tax reform would not increase the debt and we just voted in the house not to cut the cbo because they are the umpire in washington to determine what increases and decreases the deficit. I hope you use your power to break up the too big to fail banks. The debt limit is just over the horizon. I hope you use your voice to know it isnt enough to deal with measures. The harder it is to your economy now because investigators have to price the risk america will default on its debt. You probably didnt think you would be dealing with armenian. Your Department Needs an allocate one taxpayer lawyer for a few weeks. In making the decision to allocate for a few projects, you will be told you should make the decision based upon the size of the business transactions with that country. I hope you direct your department to add two more criteria. The first is whether the other country is ready to use the u. S. Model treaty. If they are willing to sign on our bottom line you dont have to commit much in the way of resources to negotiating the treaty and you build momentum internationally for other countries accepting the u. S. Model and second i hope you listen to the state department when they testified before the Committee Foreign affairs just yesterday that it is important goppolitically we have this treaty. I will get you the letter from the government of armenian saying they are willing to sign the bottom line the United States presented. I have questions. Is china a currency manipulator . On armenian we are happy to followup on your office. I stay on top of issues but that is not one what i am top of. I look forward to working with you. Is china a currency manipulator . We did not label china a currency manipulator at this time but have been in the past. Are you in favor of tariffs or other actions to recoup for america the jobs we lost when they were a currency manipulator . Or is it as long as what they did in the past we will not respond . I can assure you President Trump is focused on the economic and trade issues with china. All tools will be on the table. One more question and that is your Department Finds mobile for violating our sanctions against russia. Are you confidant your department made the right decision and why arent you holding any individuals responsible since a corporation is an inadamant construct . Individual people undermine our sanctions. Let me first comment that obviously i am highly aware of the situation and decision. Thank you, secretary, for being here. It was not Rex Tillerson that opened up the button but hillary clinton. It was romney who said russia was our greatest threat but barack obama wanted to Foreign Policy back. And it was bill clinton just reminding my state your inquirer. My inquirer is whether or not this particular discourse violates the rules you articulated earlier . The gentlemens questions violated no house or committee rule. The time belongs to the gentlemen from wisconsin. It wasnt Melania Trump who received half a million to a speech to an Investment Company that was tied to the kremlin. We have folks on the other part of the aisle part of the Impeach Trump Movement as my friends are talking about russia across the aisle, do you have any idea what is being talked about in wisconsin . 13,000 new jobs and a 10 billion investment from fox com to build the most manufacturing plant in the United States and for the first time and i cannot remember how long to build tv screens. Congratulations to wisconsin. I know it is a competitive with other states and that will be a big deal for that economy. We are talking about jobs and Economic Growth and industries that my friends on the other side of the aisle have written off. Under my boss and to your governor, 10 billion investment in 313,000 jobs in the great state of wisconsin. That is what people care about. That doesnt include the construction jobs and creation of what i think you are calling our wis con valley. Maybe that is why my friends across the aisle lost a thousands seats across government. I think if we have going to have more fox com, we third the top rates might not go going down but may be going up. Do you want to give us clarification on your view of taxes and where they should go to make america competitive again. We have been working closely with the leadership of the house and senate to create a unified plan. Our objectives are simple on the person side. We want to cut down the number of practs, simplify taxes and 95 of americans will do taxes on a giant post card that will make by job overseeing the irs simpler. On the business side, we want to tran scission from a world wide system where we allowed company to defer and leave it offshore that will bring back trillions of dollars and huge amounts of jobs and capital to the county. I would not that i dont think this is a partisan issue and i would hope both sides come together and work on tax reforms and hopefully we wont have to craft bills that have to go through this. I have concern about the euu. S. Agreement. The president talked a lot about bad deals being negotiates. This deal was announced a week before President Trump was sworn into office. We sent you a letter, pointed outb sef seven things we have concerned about, i do have a concern we dont have an ex change of letters that everyone is agreeing to to clar my what this means. My time expired but i want to make sure we get the power of yourself and mr. Trump to make thur the deal works for american insurers and state based model. The time of the gentlemen has inspired. The chair recognizes the gentlemen from new york, mr. Meeks. Mr. Secretary, let me ask first, when you became the secretary of the treasury you had to take an oath of office, correct . That is correct. And was the oath of the office to the u. S. And constitution or to the president of the United States . It was to uphold the constitution . And you are aware of the Current Events . The attorney general is told he should protect the president as opposed to the constitution. Most folks, democrats and republicans believe that maybe the attorney general did the right thing by recusing himself from any investigation that dealt with russia. My question is given the president wants loyalty and protection because he said the people, his administration is not protecting him and that in matters that are serious to the department of treasury, are you going to protect the president of the United States or are you going do to uphold the constitution of the United States . I think in many cases it is one in the same. No, you think it is one of the same . That gives me concern. The time belongs to the gentlemen. That gives me serious concerns because the are many allegations about conflicts of interest by the president of the United States and there is an Ongoing Investigation against the president of the United States about his involvement in russia and if there is someone that tells me you believe that your obligations, even if the president , because i thought no person was above the law. Let me just be clear. My obligation is to uphold the law. You know the United States congress has huge responsibilities also. I am concerned because the United States congress, what they have done, bipartisan, we are about to implement a sanctions bill against russia and in that sanctions bill, there is some authority that ovat has to enforce certain protections. Do you believe, mr. Secretary, that there is corruption in russia . Yes or no . Yes, i am sure there is corruption in russia. Now, if you believe there is corruption in russia and have you head or understand the sanction bill that we are doing in a bipartisan way in the United States congress, both the house and the senate . Of course. Have you made plans on how you would implement the sanction bill and how the Treasury Bill implements the bill . In regard to russia . Have you thought about how you would do planning to go against the corruption taking place in russia . How the Treasury Department would protect the people of the United States . The constitution, not the president. Have you thought about implementing that or can you do that on your own or must you get clearance from somebody else . I dont need to get clearance from anybody else. I do have concern sed. When i see others doing their job and it the president tweets something. Quickly about the debt ceiling for example. You said the debt ceiling should be clean. The administration said you should be able to include some increases in changes. What is your position now . Should there be a clean debt ceiling . Or other things added to it . The president has been clear that i am responsible for the debt ceiling and my position has been i believe there should be a clean debt ceiling. I am representing the administration on this. The chairizes the gentlelady from missouri, chairman wagoner. Thank you, mr. Secretary. Welcome and thank you for appearing before this committee. I dearly and sorely want to get back to the purpose of the hearing which is to talk about treasury and the state of the International Financial system. I first want to commend you regarding the treasury report you recently released focusing on regulatory burden. And i was honored to be there and many go a long way toward relieving overburden especially for community, Financial Institutions so that lending and Economic Growth can continue and another thing i am concerned about particularly with my role also on the Capital Market Cub Committee is we now have about half as mini Public Companies in the United States as we did 20 years ago. Additionalal there has been a deklein in ipo or initial public offers without a deklein in startups. I understand treasury is going to issue a capple report this year. That report focused on the issue of declining number of companies and ipos. Why should we care about this trend . As you said, we care about creation of businesses. We want to make sure there is not too much consolidation and job creation. What are some of the other impediments that are chilling the ipo market or accessing capital in the Public Market . Well, i think as you know, there are a lot of issues and we will address those in the rep t report. I am more focused on the broadening of the economy than i necessari necessarily am individual investors. I would say broadening the economy it gets back to jobs. We are very focused on getting to 3 gdp which we think is critical. The difference between 23 is trillions. We have not been there for a long time. We havent but over a long period of time it is important. How did a healthy Public Market impact Small Company growth and what impacts does it have on job creation . Limited capital to industries, limits job creation and investment. I want to rescue two questions i would get the first one out of the way. We had discussions about the the movement and i just want to remind you that your predecessor would send us estimates to give us a running account of when that possible time will come. But your response to that has been that congress should act and then you say you keep providing as with the nebulous deadline sometime after December September we both know the markets worst enemy is uncertainty. Not just about the debt limit the plays a role in what the fed does and keeping the Sterling Credit rating all around the world is what has sustained us and is the of backbone of what keeps our country the number one Financial System. So i will just ask q. Can you commit today that within one week you could follow the example of your predecessor with your best estimate when we will reach the debt limit . P. S. They give for the question i am very familiar with the markets that i have been involved in over the last 35 years i do understand the issue very well. I have been very clear publicly i have the answer the question im comfortable we confront the government through the end of september based on my information at this time that is subject to change i have said that publicly. The. Canal saudia to the other question and i want you to know that this upper and concern on this committee with president chomp in this connection there was of movie called the french connection. And with the efforts is not a democratic bill long position. Working with democrats and republicans friends on both sides of the aisle and is a growing consensus of the republican members of congress to owe it to the American People to come clean he is not bigger than america. This is not about President Trump but the American People. I love this country. I was born in the middle of a tobacco field in south carolina. But i made it all go way up through the Wharton School of finance in not only that to serve on the executive board of directors at the university of Pennsylvania School of business and fine canseco because i come from a poor family. I want you to know in this nation to know that we deserve to know what it is that President Trumpet is hiding that he is willing to turn the federal government the Justice Department is not about him no more. About coming to confidence and truth that we can restore the respect and the power and the authority of our nation. First through the American People and to the world. The of gentleman but you can take the floor. Good to see if mr. Secretary in following up i would like to thank you for your commitment with that job creator in the United States and i was very pleased to see the u. S. Covered the agreement to live across the finish line because that means billions of dollars of savings that kid be reinvested in the economy and i also appreciate your commitment to the equity caps for the u. S. Financialservices in china. I was hoping you could update us and have the chinese side reacts when we push them on that issue could we win on this front . I dont know how they will react but this is a yes no answer i dont care how they react but when they tell us that there is no cap i and my interest in going from 49 or 52 but i want no cap. Bad is my attitude. Do want to of knowledge mr. Scott i do share a great love for this country and it is extraordinary with your accomplishments. On the topic of Housing Finance reform to make it very clear that the conservative your conservator ship to deal with fannie and freddie through legislation but as we work towards reform in this committee and senate we cannot lose sight by the previous there are benefits no other country has that creates the duopoly and among those benefits are tax exempt status with the special sec exempted announced securities and the ability for the fed through the Monetary Policy operations with a perpetual line of credit and above all else the a government guaranteed it comes to the charter to give them the ability to go below market rates. As someone who was concerned about the of moral hazard, itt secretary mnuchin you understand can you do these about legislation in with you agree reconstituting freddie and they any should be avoided at all cost . I do look forward to working with you as i have said previous solution that has a pretty for the Housing Market and doesnt put taxpayers at risk. And that does not put taxpayers at risk. As a huge part of the economy and leaving them been considered conservatorship doesnt make sense. So given the of past experience of the gse do you agree your, that fannie mae and freddie mac should not be reprivatized as privately owned as the government backed institutions . Implicitly . In other words, under any circumstances to be reprivatized as privatelyowned and governmentbacked . If there is something it should be explicit and pay for or should be very clear there is an implicit government backing. The chair now recognizes the gentlemen in the dashing pink suit and from misery. [laughter] missouri. Thanks for being here. With a democracy once those rules for politeness but in that regard the Ranking Member was talking and i am simply hoping that as we move along that you would respond to letters of communication. It is impractical for you to respond to every letter that we send it to you with each member on the democratic side. So i am just hoping in the future that the legislators have responded in a timely fashion. Unless you want to respond to that . First of all, we have over 58 we have responded to that we will fully cooperate with you to the extent you are asking for this aid information i would ask you to coordinate with information you have already received we are fully ready to rule commit as responsive as we have been. I could argue with that. But with the development of that legislation it is a turbulent time. And i will it mitt admit that there was a destabilizing component in that legislation as it relates to this small Community Banks with 22 percent of them of this small Community Banks have declined or evaporated over time. This is troublesome. Twentyfive say anticipate merging with another bank. So the larger banks are getting even larger. I think that helps a little bit from that tournament meant that however i am asking you blooded vice would you give us on how we can quickly remove the burden from the small lakes . I dont know anybody on this side that believes we ought to continue to allow the burden against small Community Banks. So what can we do to remove diverted quickly . Thank you every look forward to working with you and i hope we could do this on a bipartisan basis as it relates to do community and regional banks. So to have this balanced report the regulators have agreed. We have a long list of regulations and their more than happy to follow up those specific legislative ones. See with that with the chair and other Ranking Member to work out those recommendations to provide that relief . To that extent we are more than happy to do that. I am hoping that will happen. Like every other member of Community Banks and small banks that are struggling. It did save a little frustrating to me that all be have to do is change the legislation and we dont do. I share your frustration and this is the biggest single issue since Community Banks know how to lead. Clint. I wear pink so you can find me quickly. Your the best mail addressed in the room. The gentleman from oklahoma. Secretary mnuchin thanks for being here today i serve on the ag committee carrying about derivatives are similar instruments to help constituents manage risks of what to discuss margin requirements. First i was pleased is your recent report suggested excluding the margin from the derivatives is the supplemental ratio and thanks for coming to that conclusion as the regulation reduces the clearing options for customers. I hope that it is reviewed and remedied soon. Second come my want to ask you with the of rules that have established internal transactions but the thinking regulators have not it raises concerns that only because it creates of patchwork of the fax with the approach of the of baking regulators is inconsistent. Having said that you have any comments from those banking regulators to level the Playing Field. We look forward to working with you on that first issue that should be accounted for and that is one of the issues. So to reduce the options that they manage the risk to sell those commodities to secure their resources so that approach taken by cftc that were in a position to redress that our like you to commit your department of the of all leverage guidance much of the Energy Industry it is harder to obtain capital if you briefly tell the committee why your department suggested withdrawing a the guidance in a better fashion . We think that would help wending significantly that doesnt mean they should have properly under write the loans but we do support a blanket acrosstheboard approach that cuts off leveraged lending. Indicates some of the Energy Industry they have the Proven Ability to you deliver and continue their business creating a situation we have pushed them over the edge that seems counter productive. I appreciate that with that i yield back the balance of my time. Will come again mr. Secretary. I was relieved to hear you saying negative you are going to be very vigilant on line and time monday wandering Money Laundering. So to find out if that investment activity tieins scrutiny for regulators and lawenforcement . So of course, our president and his family has engaged in. And those that are convicted of crimes is that problematic . Yes or no. It sounds that way. I can be specific what about the so whole project. But i cannot comment. Is this where it cygnet negative is that problematic . I am not connecting this to a terrorist financing. I could consume all my time but i would just bring to your attention that there have been comedies are not secret to it is in the news for everybody to read about the partnerships the trump family has with those convicted of crime and associated with russian activity. Is that problematic . That is not part of my job to commit one way or another. Your secretary of treasury with the foreign corrupt practices act. I have knowed jurisdiction over. I mentioned in my Opening Statement to talk about conflict of minerals and those disclosures which you supported so those judgments to support those eliminating disclosures for those in distant industries . So i will give you examples as exxon mobile fines of four corrupt dealings are you familiar with have a horrific civil war and how the groups took control of the mine and use those proceeds and they ended up in the u. S. Consumer market we have been dead for in the fund did the killing so upon what judgment did you rely we dont a these provisions provisions . It was gone day of violation that we think there is a lot of problems to be more than happy to follow up to talk about this issue. Alibi to yield the last minute. The queue for delving into those issues walking through relationships president of the United States with those who have been jailed or been involved in criminal activity and the treasurer was asking you what you think about that and theyre real question is whether or not your responsibility to protect the people of that country as it appears for those in his cabinet or others and that is the question. Thank you very much. Secretary mnuchin i appreciate you being here today for more than six years i have been fighting for a group of heroes that were once held captive. February 13 with of the department of defense contractors as they were shot down by the revolutionary armed forces of colombia a designated terrorist organization that controls more than 95 of the worlds cocaine business the pilot was executed on the spot and three floridians were captured and held hostage in the jungle and severely tortured for more than five and a half years and told rescued by the colombian army. So obtaining a federal judgment under the antiterrorism act for damages against park to compensate for their active terrorism during their captivity and the execution of an american. However there are no farc assets except for the drug money of the agents and these are frozen under the foreign narcotics kingpin act and under current law victims cannot access to frozen assets under the kingpin act i believe the victims which profits into activity with drug money should be compensated from the drug money we have secured in the 114th congress i introduce legislation to provide terrorism victims and to change the of law passing the house by unanimous consent but stalled in the senate of the foreign asset control raise concerns about the bill but they never mentioned in the house a reintroduced legislation to this congress im hoping to bring that to the floor soon the situation is the former hostages have been waiting 14 years for justice and they have received zero help from the u. S. Government that they serve because of the office of foreign assets control. Id like to get a commitment to make these brave americans whole again. This sounds like it was a horrible situation i am not familiar with any of those details with i am rather happy to work with you upon the legislation and understanding. Predecessor gave a song and dance. We will follow up. Is chair recognizes the gentleman from minnesota. Secretary mnuchin one of those worst moments for the foreclosure collapse i dont ever want to see that again. I am concerned about your our approach to supervising the Mortgage Market to make sure that banks that engage in those issues are up building as high standards of ethics. So could you explain how you are the ceo could engage in 6500 Violations Including backdating of what you engaged in . First of all, let me assure you i did not make one mortgage during or prior to the of mortgage prices scitech over three banks from the fdic one of which was the worst originator in the entire world by a very proud of the fact that we started loan modification under the fdic control which we did so i take great offense to anyone who calls me the foreclosure king and with what ever issue. Cry every cleaning my time. I allow you to answer for. Read on how of a problem with you answer but i will not let you filibuster civic there is no question before the secretary at this point spread the Vice President with that 6,000 foreclosure related documents which you do your supervision . Not directly. Was she employed under you . She was employed at the bank. She said under testimony with those foreclosure related documents per week week, what is your position . I have answered this extensively. Listen to me. No i dont have to listen to you. I would like an answer. If youre not going to answer. What is your position on robo calling . O robo signing there is not a legal definition. Do you deny under your supervision the robo signing occurred at your firm . It was not robo signing. You deny that . And also for the record under direct testimony and for people watching robo signing is when you are signing documents and you have to review the documents you have an obligation to review them sign them without reviewing them is illegal because use where the you have reviewed the documents so under the secretary supervision that happen to a very severe degree of he was ceo of one west was nine white elite nine times more likely to foreclose from originating a mortgage from other communities are you concerned about the disproportionate number of people but graf foreclosure at the hands of your company there were persons of color . Where are you sure there is an equal administration of justice as the engaged in foreclosure . I will assure you we upheld the strictest of mount the rules and regulations reviewed by the occ the fed and Consumer Protection and bureau and would not discriminate in any way. We will see. I have a parliamentary inquiry. For what purpose . Would you like to give an imminent day second to apologize . Mac the time belongs to the gentleman from illinois and. Seven like the record touse state was paying is the only big that concluded the independent for a closure review every single loan was reviewed and properly compensated. Also we were the only big to do all alone modifications to take great offense in the body that calls me a foreclosure can bring key member i have had the opportunity to talk with you about this many times before it is nothing space very proud of the one rest west record robo signing is not a legal term and i am being harassed. You are under oath. The time does not belong to the Ranking Member but to the gentleman from illinois. You may proceed. Lahood june 12 report makes recommendations of the Cybersecurity Framework in which a river together to harmonize regulations bin should work to those interpretations with specific rules of guidance so how do facilitate these efforts are what can we do to support this work . It is very critical Cyber Security is an important issue were working closely with the regulators is the importance of the confidence of the consumers if you no Venture Capital funds is the innovation and job creation with that june 12th report so changes of those provisions a system of the other capital critical. Opportunities have you discussed this specific position that have the authority to make amendments . And what is the Treasury Department that conforms to existing laws how do you encourage with this important work . One parches working with the regulators with those regulatory issues people can follow the full court ruled appropriately and also we would be more than happy to work with you on those changes strike down the june 12th report those that make and that denominator should be made for the cash hoard of deposit by a agree with that recommendation so how do you plan to work with the fed with a supplementary leverage ratio . In the aisle we are hopeful. And now one more question with comprehensive tax reform. Continuing to do Economic Growth specifically for that tax exempt status and investing in infrastructure and by signing a letter and how does that fit in in the administrations plan and with that municipal finance with that current tax to read . En then state and local entities in the efficient way. And her time has expired. Thankyou for being here today so lets start talk about marijuana and banking we europe 28 states but plus the district of columbia and if you add all of the states that allow canada soil that is another 16 states mostly it is the statement california and colorado that it is important the Treasury Department and the Justice Department continue to focus on this because unless the have Banking Services the amount of cash is a huge magnet for crime and it is very important we allow those setter of the golan the state to have payroll accounts. And i will just get this handled for quite unaware you larval one basket on the record but i want to make sure you understand to come up with ideas to have some level of marijuana use so we were very concerned with those types of clients and then to understand that issue to figure out that a regulatory solution. We would really like to work with you to get this ironed out. You use the words cutting off of money in a way that can work but that also applies to a north to vietnam and russia. Candida applies to venezuela where we launched sanctions yesterday. I appreciate that so with respect to sanctions because of aggression and actions and elsewhere the department continued so on that we appreciate you working with us so on crypto currency appears there very adept at making opaque those transactions that bin continue to work with us that we can pierce those crypto currencies and then we Just Announced so this is a big priority of ours on the 23rd of july that talks about the technological changes and dont have much time in. Dont people most people dont go into bakes anymore with changes of technology and regulation. The chair recognizes the gentleman from florida. On one of your priorities so we talked about this before our important it is if were going to grow the economy and with the highest tax rate to have the highest Corporate Tax rate at the same time the effective tax rate is 21st in times of tax revenue business is make decisions and in my opinion what impact does this have on our economy . We can change the equation we need to look at how they shelter their income what is happening to them 14 percent . The day looking at where they want to locate their businesses . What type of entity lawyer whod day will higher so were having of a little bit of an issue here whether health care or anything else if we can only do Corporate Tax reduction would you not agree lowering that tax revenue with the tax shelters of going from 35 and 50 . Not just about lorena rate changing from a worldwide system and were the only ones in negative appointed out and sometimes i even pay any tax and then we broaden the base and raise revenue. With that anemic one or 2 percent in the years following the recession and and . I am very committed and i am a strong supporter that is a very good thing for the Insurance Companies so is there ever a need for regulator . End of the support that there may be certain issues were looking for error federal regulation of insurance. Mr. Chairman in thank you and mr. Secretary i want to do deviate from that area because i agree that we are presented with a terrific opportunity and i want to make one pleat and asked you questions there is strong bipartisan agreement for a comprehensive tax reform there are elements that our important to this side of the aisle like maintaining distributional equity and a may surprise you to know of zaph revenue neutrality and that poses a threat to programs like medicare and Social Security but what is important to us is a process that is regular order started and a bipartisan fashion with the way health care was brought forward a process using reconciliation to now that the failure means working with the democrats so my question to you is are they prepared to push ahead with that your ability or is that closer to the health care rolm . I would like to hope it is bipartisan with shared values and objectives and goals and i personally have sat down with Many Democrats to get feedback and afford to continuing to do that. I think a lot of the debate is on the republican side of the aisle i think your voice will be very strong on these issues for pricey the president really mean of the democrats when the process of health care was designed to exclude. And the year previous career have not been in town that long the it for you touse set the stage with the bipartisanship so i think we all recognize to some extent on that bipartisan cooperation. And i would note the democrats under obama are having a process that excluded that is simply not true hearing after hearing that ultimately did not bear fruit bear fruit. It would be nice if the house could commit itself in a bipartisan fashion of. Recognize he said gentleman for ruth carolina. I want to thank you for your Community Banks but in North Carolina today we lost 50 percent of the banks since 2010. That has had a devastating impact so as you know, fleer working on a reform bill that we hope to introduce some time this fall to to to the avert emerging technologies and we want to see greater oversight as the growth 350 so a did to these well coordinated efforts they have spoken out including the secretary of defense or the National Intelligence the cia and nsa and the joint chiefs of staff. I would like to have your clarity on this issue and understanding which you think is of reference to. Can i take my role very seriously and look forward to working with you and others something hopeful we can do this on a bipartisan it bipartisan basis. But we have sought the opportunity to work with you and others. There is a long list of changes with afford to making with you. I have some real concerns of several meetings with the ambassador i have yet to receive any reports they were prosecuted for terrorism finance issues for those who reside there and the loss works with impunity. And even he said to be in his efforts that he worked very closely with al qaeda and said i will take care of them later. But have they been in composite . So working very closely with them i can tell you theyre cooperating and take this seriously most recently signed a memorandum end we are committed to working with them to make sure there is not terrorist financing. For one other matter i would like to know your assessment of the current process with the transfer and sharing of data so what can be done to enable those Financial Solutions to have better access that allows those to coated on those concerns that we have . So it seems to be that to directly help our concerns with privacy matters and what the fed to institutions have on them and to get your perspective. We look forward to working with you we always thought they went into a big black hole and i can assure you the first thing that i did when i got here was to ask that question. Your time has expired. Ag for coming here today of a leg to focus on one of those spars areas the before forceful and Effective Response or currency manipulation as a manufacturing businessman it manufactures the theater and lighting equipment i have long been concerned about the manipulation of a foreign level Playing Field the did to make periodic reports of manipulation to have that quantitative test which i believe was done very well you correctly concluded six countries including china should be put on a the watchlist but no country satisfies each criteria but if with the future if it is designated a currency manipulator he could only be charitably described as troubling there is an alternative as a matter of National Policy with any country has been designated they would be countervailing currency of one of the trading partners intervened for that competitive advantage woofing cage to cancel this defect advocating for that countervailing currency recently published a book with very specific proposals and while there is some authority it could obviously be striking in that legislation are you considering again some of manipulation and i open to considering intervention or other approaches in response . We look forward to working with. Guest this. Having recently studied this internally this is one of the issue is we looked at the agreement. But in the case of nafta manipulation is not a major issue. Upfront fee five the afternoon. I am the director of the initiative that the Atlantic Council thanks for coming in and also into cspan. One of the things we do at the Atlantic Council is u. S. Foreign policy with iran and with the obama administration