And the chaithe chair is authore basis of the subcommittee without objection members of the full committee and on the subcommittee are authorized to participate in todays hearing. To keep their video function on at all times if they were not recognized by the chair. They applied to this hearing. [inaudible] in addition participating in person enforcing the order and the to we provided the following guidance for meetings in the limited closed spaces. This is one such as the Committee Hearing for greater than 15 minutes the coverings are required and the chair will treat Wearing Masks and all should wear masks. Members who do not wish to may participate to the platform. This hearing is entitled Capital Markets and Emergency Landing in the era. I have a point of inquiry. It was my understanding based on the rules that masks were required to if speaking in the question purer cow. I just want to make sure. It is the strong preference that we wear the masks even while speaking. But that rule will be less enforced then at other times. The reason for that is if you are not wearing a mask before, you may not be called on the tht once i caught on someone, we will rely upon the dedication of everyone else in the room. As we have seen from a number of instances we are more likely to spread the disease with speaking them not speaking so i would urge you to do so but my tools for enforcing that are limited. Thank you, i appreciate that and i would advise your Comfort Level as we are dealing with this much like the rules on the house floor i think that we are free to the Comfort Level being able to. So why would you attack. We will treat Wearing Masks and as a matter of decorum. As i said before, they may do so when they participate virtually. I will now recognize myself for four minutes. Mr. Clayton, im glad you are here. I hope that you are here six months from now. Its been suggested as a part of the position to fire the u. S. Attorney for the Southern District of new york if he would be called upon to fill that position they can stand up and save the reputation. I dont know if hes taken advice from senators but in this case i would commend to you especially in light of the fact that senator is pretty much indicated that you are with us for the duration. Theyve also moved aggressively to stop on the investment scams and have already suspended trading of the companys. With the time and emergency i would hope they would use the bandwidth to do two things, things that are necessary because of the emergency and things that are bipartisan. I would hope they would curtail the efforts on the proxy advice and the roles that would narrow the disclosure. We will be dealing with a number of bills to require Public Companies risks to the supplychain disruptions and workforce to reverse the fed and treasury decision to open the facility is only to corporations with Credit Ratings from certain agencies. The wii will also discuss members of the legislation along with my bipartisan cosponsors and among these are the need for continued Public Disclosure of those unique risks that the companies have because of covid19 and the barriers to entity make sure they are protected and continued challenges with the accounting standards and the overall push to be controlled to move from historic accounting and what has happened to those that have been completed to moving to having the accountants project what is likely to happen or to determine if future values. Stock buybacks i will now yield of four minutes to the Ranking Member. The Capital Markets and Emergency Landing in this era i will note it is in the Southern District of new york and now that that has been checked a hope that we can move on to the work of the churning clayton. The last several months appended the likelihood for millions throughout the United States with almost every state under stayathome orders, everyone has been affected by the pandemic. Its impacted the Capital Markets as well. During the First Quarter of 2020 it caused Capital Market chalk. This was evidenced by sharp price declines and equity markets which closed the First Quarter with the worst performance in the financial crisis. The ultimate symbol of peace times with a march 23 closing of the Stock Exchange the Capital Markets have undergone the pandemics and im pleased to report as we are beginning to emerge we should take stock of the Lessons Learned it will necessary influence howellnecesy protect business in the foreseeable future. We look forward to hearing from you today to reunite the economy and Health Business gets back up and running and get americans back to work. We need those folks to increase savings for these main street im hoping we are able to capture the streamlining and ass economists talk about reducing the friction between the transactions in a way thats certainly keeps investors save, facilitates the markets and increases the value and its importance here in the United States and with that i will yield back. At this point i would yield to the chair of the full committee. Im happy to take your time to i commend joerg leadership and during these tough times for focused work youve all been about is commendable. This gives assurance in the market and to the American People and the government can actually function even in the time when we have to stay socially distant. So we focus on the policies that make the market stronger, more attractive and more competitive to see our way through this economic challenge borne out of this crisis. And the prioritized target of reforms to address and needs related to the virus so thank you for your leadership and for being here and thank you for your good work. The testimony of the distinguished with mass for the Oversight Council is a package of responsibilities for anything else hes considering doing. Chair clayton has testified before the committee before and will not provide future introduction. I have a deep respect for the district which was recognized throughout the nation and internationally enforcing the law and pursuing Justice Without fear or favor. Im fully committed to and focus on a roll at the fcc. We couldnt be more proud of the work of my colleagues of the past three years. There is much more to accomplish in those that emphasize the commitments respect, diversity and opportunity for all. I look forward to continuing to the commission. In the mandatory cluster thanks to the dedicated women and men of the agencies that have remedied the location and flexibility and resiliency proving way to work is so important to the Mainstream Investors in the markets. Indiin these times of economic stress and volatility, by the collective unprecedented Safety Response to covid19, the commission has focused significant resources on ensuring that the markets continue to function as expected facilitating timely decisions in the disclosure of a. I would be when asked if i didnt mention the prompt Decisive Action of the Federal Reserve, treasury and congress from my Vantage Point they were necessary to. Despite the extraordinary volumes of the volatility the past few months, the Securities Markets have functioned largely as defined and importantly as the participants would expect a wave been engaged with our fellow Market Participants in this regard and provide targeted relief and guidance. Weve also been assisting issuers in fulfilling the obligation to provide materially accurate conflict disclosures and urged corporate and municipal issuers to provide investors as much information as practical regarding the current and anticipated financial operating status. The commission issued over 30 and bought a number of Enforcement Actions based on the claims. Finally, on the agency engaging in numerous initiatives weve also continued the Traditional Agency functions including the rulemaking, investor outreach and others. Thank you again for the opportunity to justify that the work of the women, men of the commission and i look forward to your questions. Thank you. We have a minute available to the chair of the committee, but im told, and this doesnt surprise me that she would prefer i do not yield per minute. A point of inquiry. Can you lay out for the members your intention of how thank you for the clarification. Small business is very important. We just about the most Popular Program that is going to cost the federal government have a trillion dollars. But its important we do Everything Possible to get capital in ways that dont cost the federal government money. The de unintended effect of a indepth post funding will. Are you confident they be. Fullstosolvedthis problem iny will be included in these indexes. Its not something that we can mandate a vm improvement is appropriate and if you look at the regulatory flexibility agenda, we have a fund to Fund Investor experience and i intend to finish those rulemaking send proposals to i think Small Businesses are even more important to the economy than those that are enjoying the role that includes them for the investor documents looking to expand electronic of a document beyond the shareholder report and askeand asked my colleaguese heard me say if you mail it to me i will lose it. Email it to me and then if a witness in this room is particularly boring, i can look at it while im in this room because we only have interesting witnesses here. [laughter] when i have a spare minute somewhere i can find it. Where are we on electronic delivery . My perspective has been shaped by responding to what we need to do in this situation. My response has been further shaped on the work weve done in this environment. We live in e. On electronic communication world and anyone that wants paper should be able to get the paper. What this has shown us is the importance of electronic delivery. I want to address the fact that the company is based in china and i think also belgium are being traded on the Stock Exchanges, but the investors dont get the protection of the auditing audit. The not subject but that is allowed but when you have one that is more than that, you are asking people to make investments and without the protection if you were going to consisinvest in the Investor Protection committee, so i look forward to working with you to make sure they are protected and i hope that in evaluating whether to impose the requirement in measuring what portion is unavailable that you wouldnt work on these powers to change by having them do more or less. We want more auditing and we want the auditors being audited so i look forward to working with you on that and we will now yield, i both recognize the gentleman from shit and for five minutes. Think you, mr. Chairman. It seems we may have swapped notes and questions here. My questions were about the digitalization efforts and assessing the impacts on the Business Continuity plans in permanent changes and i think that you answered that to get the paper. To expand a little bit about where the chair was going what iwithit make sense to make suret there is full Rulemaking Authority and in these jurisdictions they are not caught up in the bill . The question is what scope of authority do we have in writing the regulations to implement this bill. As the bill stands, we have the ability to do that and more as it stands we could implement it but with further nuances. I just want to find out if you think that you have the proper tools to be able to move forward on that. As a small privately owned business as we see them struggle to stay afloat some are looking to sell their business. I have a bill that would allow the small but this is the opportunity to be sold to the next generation of entrepreneurs while protecting good paying jobs. I hope you would join me in supporting this and we can pass this to help struggling homeowners. There are things we can do to make sure the Small Businesses are not treated like a publicly traded largecompany. I am so happy with their work because the job is to recognize they are different in their needs and operations firm Public Companies. With response to covid, weve addressed it. Co. Adjusted that but to serve the smaller businesses and understand the rules should be different from the Public Company rules and shouldnt require the hundreds of hours to get there. I believe that the sections that have supported this in the past we have seen a number of efforts ive passed this bill in the house unanimously. In japan they need coke schema to be helpfuschematabe helpful g several of my constituents have been waiting can you give an update to help them get their money back . Let me say this, you cant reach any conclusion other than that there is a failure in the system. Everything that went on here at the legitimacy at the end of the day they havent gotten much money back and they will never be anywhere close to anything satisfactory but we are looking at the remaining claims consistent with our authority and independence as an agency thanks to the work of considerable reserve in conjunction with this body we are in a period of uncertainty. We will find out how they are operating and hopefully what they will see is companies adjusting and continuing to increase their ability to operate to the extent that filters down to. As they learn to deal with the virus observationally that is as quick an answer i can give you. We have done well. We have work to do. I yield back and i will have to excuse myself because im about five minutes late for my vote im getting notes from staff how to conduct the hearing to review the disclosure materials. But i promise not why a few are here. I recognize the chairman of the full committee, ms. Waters. I appreciate the opportunity to be here with you today. Chairman clayton, in, the United StatesSouthern District of new york was forced out of the position by President Trump and attorney general barr. Actions appear to be a continuation of the efforts to squash any intend to hold the enablers accountable. The Southern District of new york has been instrumental in conducting independent investigations into the associates and the Trump Organization in currently investigating. An institutional with substantial Financial Times to President Trump. In light of these actions i am deeply concerned that while this post is pending, President Trump and the attorney general may try to interfere with your ability to independently oversee the securities and Exchange Commission and serve as wall streets cop on the beat during the Global Health pandemic. I dont think that matter requires the attention. I dont think it requires my attention at this time and i intend to devote my full attention to the commission. So you will continue to serve as the chair while you await the confirmation and you will not step down or step aside or have someone take your place in any shape, form or fashion that you know about . Where i sit right now this isnt the time to decide. There is no need for me to pay any attention to the nomination at this time. Im fully committed to becoming the chairman. That wouldnt be your decision, and im not asking if you were making that decision. I basically want to know if anybody els else sent to said tt you would not be serving wh whie you awaiwhydont you await conf. Has anyone said that to you, anybody . Ive checked this matter with our office and i continue to Service Veteran and to develop my full attention. Will you commit to refuse your self from all matters before the direct or indirectly involve President Trump which we may create the appearance that your actions served as a favor to President Trump to obtain a position that theyve highly politicized . Im going to continue what ive always done which is to pursue all matters within dependence and consult with ethics on any issues that would give the appearance of not having independence but i continue to operate as i have. Said that as a yes ask what the records show the answer is in the affirmative. If we have time for one more question, chairman, at the onset of the crisis i call upon you and other financial regulators to immediately halt the adoption not directly related to interest the unprecedented. 100 of the resources should be dedicated to protecting investors and the u. S. Capital markets during the pandemic and i was also c