we use the federal reserve note as the unit of a count, but there's no legal definition of a federal reserve note. that's a pledge to pay something. so a note being something precise, and then you have to have management and it doesn't work well, then we think, well, we just need more regulations and everything will work out smoothly. i have a lot of reservations about that because i think we have a lot of inflation. we have a lot of instability in prices, and even when the reports come out that the pricings are rather stable, they seem to ignore that the cost of living for many is going up significantly. the price of energy goes up. the price of medical care goes up. even when the cci and ppi may not be revealing what's happening, there's still a lot of destruction of the value of money. for this reason, we've been in a decade or so where the real wages have not been able to keep up, which really is the bottom line, i believe. the unemployment factor and keeping up with the cost of living and keeping up with real wages. so i'm very pleased to have the various members today as well a

we use the federal reserve note as the unit of a count, but there's no legal definition of a federal reserve note. that's a pledge to pay something. so a note being something precise, and then you have to have management and it doesn't work well, then we think, well, we just need more regulations and everything will work out smoothly. i have a lot of reservations about that because i think we have a lot of inflation. we have a lot of instability in prices, and even when the reports come out that the prices are rather stable, they seem to ignore that the cost of living for many is going up significantly. the price of energy goes up. the price of medical care goes up. even when the cci and ppi may not be revealing what's happening, there's still a lot of destruction of the value of money. for this reason, we've been in a decade or so where the real wages have not been able to keep up, which really is the bottom line, i believe. the unemployment factor and keeping up with the cost of living and keeping up with real wages. so i'm very pleased to have the various members today as well as

we use the federal reserve note as the unit of account. but there is no legal definition of a federal reserve note. and that's a pledge to pay something. so a note being something precise, and then you have to have management. and it doesn't work well, then we think, well, we just need more regulations and everything will work out smoothly. i have a lot of reservations about that because i think we have a lot of inflation. we have a lot of instability and prices. and even when the reports come out that the prices are rather stable, they seem to ignore the fact that the costs of living for many is going up significantly. the price of energy goes up. the price of medical care goes up. the price of education goes up. so even when the cpi and the ppi may not be revealing what is happening there is still a lot of the obstruction of the value of money. for this reason now, we've been in a decade or so where the real wages have not been able to keep up, which really is the bottom line, i believe. the unemployment factor, and keeping up with the -

he's the federal reserve bank of dallas president. he says in particular, the fed's plan to buy $400 billion of long-term bonds while selling the same amount of short-term debt is benefitting financiers and not aiding job creation. philadelphia fed president charles plosser in a speech on economic outlook to the business leaders forum at villanova school of business expressed extreme skepticism with that so-called operation twist, trading long-term debt for short-term debt. and he really didn't think it would encourage business investment or consumer spending. quote -- "i dissented from these decisions because i believe they will do little to kpwraouft near-term -- to improve near-term prospects for employment and they do pose risks." they are very legitimate strong concerns which i share on the current monetary policy of this federal reserve. and it is very clear from the statements of these two nominees that these two nominees will support that policy, will support that direction for the forseeable future, will not provide dissent,

the federal reserve regular oversight hearings, which goes on and the humphrey-hawkins act federal reserve provisions placed those into law and set a regular procedure. that included, of course, professor taylor has said, goals for the growth of various monetary aggregates, which over time, as dr. rivlin has just said, became less useful because the relationship between those objectives or those statistics and anything you ultimately cared ultimately cared about became much noisier and less reliable. >> thank you for that response. doctor, being from missouri, my home state, let me ask you about something that american, concerned about, and that's the rise in gasoline prices at the pump, especially the working class. what measures could the federal reserve take to stabilize the recent rise in gas prices? any suggestions? >> well, the price of gasoline and the price of, the price of oil follow a little bit outside the mandate of the monetary authority. so certainly rising energy prices is one manifestation of a monetary policy that is overly accommodative, but on the whole energy prices esp

act federal reserve provisions placed those into law and set a regular procedure. that included of course, as professor taylor has said goals for the growth of various monetary aggregates, which over time has dr. rivlin has just said became less useful because the relationship between those objectives or those statistics and anything you ultimately cared about became much noisier and less reliable. >> thank you for that response. dr. kline, being from missouri, my home state, let me ask you about something that americans are concerned about and that's the rise in gasoline prices at the pump. especially the working class. what measures could the federal reserve take to stabilize the recent rise in gas prices. any suggestions? the price of gasoline and the price of oil fall a little bit outside the mandate of the monetary authority. so certainly rising energy prices is one manifestation of a monetary policy that's overly accommodative. for energy prices are set primarily in global energy markets over which u.s. policymakers have relatively little control. there are m

how does the federal reserve system measure up as an organization? are its objectives as mandated by current law achievable and appropriate for a government agency? are these objectives consistent with a healthy and growing economy? ised fed effectively managed, structured, and governed? do key sdecision makers make god decisions? my answers to these questions are very strongly negative. the fed has been given a task, managing the u.s. economy, that is impossible for any government planning board. the fed has vast authority and very little accountability. the fed can take actions that do enormous harm to the u.s. economy. since 2008 the fed has done exactly that. it has pumped money into the financial system at unprecedented rates. it has kept interest rates near zero, thus discouraging prudent behavior among consumers, entrepreneurs, and government actors while encouraging reckless spending and the accumulation of vast private and public debts. the fed has done everything it can to prevent the market adjustments needed for recovery from the financia

i think the federal reserve -- [inaudible] >> could you check on the mic? >> with the european bank been helpful? to have prevented the federal reserve from that type of cooperation, increasing the chances of trouble in europe would've and i think a very great error. second as farce congress is concerned with the major activity, we should be following a two-step procedure. long-term deficit reduction with some shorter-term stingers but the fact is the unemployment rate is higher than it would have been if we had not forced by a variety of us go policies, state and local governments to fire 600,000 plus teachers and firefighters and public works employees and police officers. i think that's been a -- they been her because many of them are financed primary by the property tax, property values went down. i think forcing those reductions by inappropriate federal policy is a great mistake. and yes its importance to reduce the deficit long-term, unlike many of my republican party thinks the president wants to get out of afghanistan to quickly but i think he wants

federal reserve an arm of the treasury. the other deals would make various changes either to the mandate or to the federal market committee's governance. as ranking member, i want to focus on the federal reserve dual mandate of maintaining stable prices. the growth act of 1970 a, better known as the humphrey- hawkins act, says benchmarks, growth, and price stability, and the balance of trade. to monitor progress, it mandated that the board of governors at the federal reserve presents semiannual reports to congress on the state of the u.s. economy. the humphrey-hawkins charges charges a dual mandate both maintaining stable prices and full employment. currently the unemployment rate is 8.1%. since president obama took office in january of 09, the unemployment rate has gone from 7.8% to around 10% as the impact of financial crisis spreads. i do believe the u.s. economy is heading in the right direction. as of march, at the consumer price index was 2.7 and%. over the past year a decline of 2.9 term. during the same time, energy

at enhanced capital or such, would that be done within the federal reserve or within the fsoc? >> that would be done by the federal reserve. >> do you have the expertise to overlook all the different types of business pod dels that you're probably looking at here, or am i making it more complicated than it is? >> well, we have a lot of expertise across a range of activities. >> well, i mean financial activities, yeah. >> because bank holding companies engage in a lot of the activities that the nonbank companies are engaging in, as well. so in a lot of cases we feel like we do -- we would have sfirnt expertise but if there's cases where we need to bring in more expertise for nonbank companies that are des nagnated we would certainly do that. >> i would assume the dollars ig nation simply by the name obviously means that if one institution were to fail, that there wouldable systemic problems to other institutions bank or nonbank. we will obviously found that in 2008. is that one of the main criterion to having the designation? >> yes, the statutory standards that are the council

enhanced capital or such, would that be done within the federal reserve or within the fsoc? >> that would be done by the federal reserve. >> do you have the expertise to overlook all the different types of business models that you're probably looking at here or am i making it more complicated than it is? >> well, we have a lot of expertise across a range of activities. >> i mean financial activities, yeah. >> because bank holding companies engage in a lot of the activities that the non-bank companies are engaging in as well, so in a lot of cases we feel like we do, we would have sufficient expertise, but if there is cases where we need to bring in more expertise for non-bank companies that are designated, we would certainly do that. >> i would assume the designation just simply by the name obviously means that if one institution were to fail, that there would be systemic problems to other institutions, bank or non-bank. we obviously found that in 2008. is that one of the main criteria to having the designation? >> yes. the statutory standard is that the council should design

reserve regular overnight hearings and the hutch fri/hawkins act federal reserve provisions placed those into law and set a regular procedure, and that included, of course, as professor taylor said, goals for the growth of various monetary aggregates which over time, as dr. rivlin said, became less useful because the relationship between those statistics and anything you ultimately cared about became much noisier and less reliable. >> thank you for that response. doctor, being from missouri, my home state, let me ask you about something about that americans are concerned about, and that's the rise in gasoline prices at the pump, especially the working class. what measures could the federal reserve take to stabilize the recent rise in gas prices? any suggestions? >> well, the price of gasoline and the price of -- the price of oil follow a little bit outside the mandate of the monetary authority. so certainly rising energy prices is one manifestation of a monetary policy that is overly accommodative, but on the whole energy prices, especially for oil, for gas, and so forth, are set primari

frank, what do you think the federal reserve and congress could do? >> i think they have been very helpful. i think the policies in brady's bill would prohibit the future. we would have been worse off if it hadn't been for them. the interventions the fed has taken have been helpful to us. first of all, in helping to provide the funding that's helped our economy. secondly, and i think there's a real point of difference between the parties. i was surprised by it. i think the role of the federal reserve in working with europe, working with european central bank has been helpful in avoiding the kind of serious downturn in europe, which will be negative effects on us. i think the federal reserve -- >> excuse me. check on your mic. >> thank you. with the european central bank have been very helpful. to have prevented the federal reserve from that kind of cooperation, increasing the chances of trouble in europe, would have been, i think, a very grave error. secondly, as far as congress is concerned, we have the major activity. we should be following a two-st

frank, what do you think the federal reserve and congress could do? >> i think they have been very helpful. i think the policies in brady's bill would prohibit the future. we would have been worse off if it hadn't been for them. the interventions the fed has taken have been helpful to us. first of all, in helping to provide the funding that's helped our economy. secondly, and i think there's a real point of difference between the parties. i was surprised by it. i think the role of the federal reserve in working with europe, working with european central bank has been helpful in avoiding the kind of serious downturn in europe, which will be negative effects on us. i think the federal reserve -- >> excuse me. check on your mic. >> thank you. with the european central bank have been very helpful. to have perfected the federal reserve from that kind of cooperation, increasing the chances of trouble in europe, would have been, i think, a very grave error. secondly, as far as congress is concerned, we have the major activity. we should be following a two-st

the federal reserve's worried the u.s. economy is headed for a fiscal cliff. we look at what policymakers are saying now. >> tom: i'm tom hudson. pump prices continue to slide, and that could mean cash in your pocket this summer. >> susie: and when it comes to individual investors, will they or won't they buy the facebook i.p.o.? >> tom: that and more tonight on "nightly business report." they're could soon be more help for the u.s. economy. federal reserve policymakers say they're ready to step in with more help if needed. the central bank released minutes from its most recent policy meeting today. they show policymakers are worried the u.s. economy is heading over a fiscal cliff. that cliff is the expiration of tax cuts and the start of deep spending cuts in the federal budget scheduled early next year. darren gersh reports. >> reporter: just like the rest of us, the federal reserve is waiting to see where the economy goes next. at its late april meeting, minutes released today show several members of the fed's policy making committee thought more bond purch

. >> bills to reform the federal reserve by congressman ron paul that would do away with the federal reserve system entirely. he chairs the house financial services subcommittee hearing. this is just over an hour. >> this hearing will come to order. all members opening statements will be made part of the record. chair notes some members may have additional questions for these two panels which they may wish to submit in writing. without objection the hearing record will remain open 30 days for members to submit written questions to these witnesses and place their responses and the record. i also ask unanimous consent that those non subcommittee members who are present be recognized if they wish to give opening statements or ask questions. i now recognize myself for five minutes for an opening statement. first i want to thank our two colleagues for being here today and they will be recognized shortly. as many members know, the subject of the federal reserve and monetary policy is something i have been interested in for a long time believing it has a great deal of significance with rega

how does the federal reserve system measure up as an organization. are its objectives achievable as appropriate for a government agency. are these objectives consistent with a healthy and growing economy. is the fed effectively structured, managed and governed. do key decision makers have the information and incentives to make good decisions. are they penalized for making mistakes. my answer to these questions are very strongly negative. the fed has been given a task managing and stabilizing the u.s. economy that is impossible for any government planning board. the fed has vast authority and very little accountability. the fed can take actions that do enormous harm to the u.s. economy. since 2008 the fed has done exactly that. it has pumped money into the financial system at unprecedented rates. it has kept interest rates near zero thus discouraging prudent behavior. the fed has done everything it can to prevent the market adjustments needed for recovery from the financial crisis. all this has happened without oversight, without external check and ba

each one has a federal reserve bank in a. and then a board of governors which oversees the whole system is in washington d.c. notice, by the way, how many of the little black dots to the right. in 1914 most of the economic activity in the united states was in the eastern part of the country. now, of course, it is much more even. reserve banks are in the same locations that were in 1914. it -- the point here, the value of this structure was again creating a central bank where everybody, all parts of the country would have a voice and where information about all aspects of our national economy would be heard in washington. that is, in fact, still the case when the fed makes monetary policy it takes into account the views of the federal reserve banks around the country. we have a national approach to making policy. the fed was established in 1914. for while life was not too bad. the roaring '20s, and 1920's, the charleston, i think. life magazine. you never heard of that. a very famous magazine for a long time. anyway, 1920's, t

in the "great depression," the federal reserve cut the growth rate of the money supply. it raised unemployment to unprecedented levels. in the 1970s, a discretionary go-stop policy led to double digit and unemployment eventually, double digit inflation, low academic growth and double digit interest rates. in the '80s and '90s, a more focused policy, more systematic, more rules-based in my view, led to long expansions, low inflation, declining unemployment and eventually higher academic growth. unfortunately, more recently, we moved back to a more interventionist discretionary policy, much less systematic, and the results have been a major financial crisis, major recession, and now an abysmally low growth recovery. you can look at the details. it seems to me the evidence is pretty clear we need to improve the degree to which monetary policy is rules-based rather than discretion. i think the legislation to change the dual mandate and focus on price stability, which is in congressman brady's bill and also in congressman pence's bill would help in this regard. so many of the

frank, what do you think the federal reserve and congress could do? >> i think they have been very helpful. i think the policies in brady's bill would prohibit the future. we would have been worse off if it hadn't been for them. the interventions the fed has taken have been helpful to us. first of all, in helping to provide the funding that's helped our economy. secondly, and i think there's a real point of difference between the parties. i was surprised by it. i think the role of the federal reserve in working with europe, working with european central bank has been helpful in avoiding the kind of serious downturn in europe, which will be negive effects on us. i think the federal reserve -- >> excuse me. check on your mic. >> thank you. with the european central bank have been very helpful. to have perfected the federal reserve from that kind of cooperation, increasing the chances of trouble in europe, would have been, i think, a very grave error. secondly, as far as congress is concerned, we have the major activity. we should be following a two-step

does the federal reserve have the expertise to supervise nonbank firms from different industries? how well would the f-soc and the federal reserve coordinate to insure the standards for designation supervision are in harmony and are they working with their counterparts across the globe to harmonize the standards for systemic significance in the united states with global systems significance. there's still questions that deserve a robust discussion and i'm hoping we get do that in this morning's hearing. i'd like to thank our witnesses for appearing before the subcommittee and would like to recognize the gentlelady from new york, ms. maloney, for the purpose of making an opening statement. >> first of all, i want to thank you, madam chair, for calling this hearing and i welcome our witnesses. this hearing today is about a very important set of issues designation of nonbank companies as systemically significant. and there's a lot of per spektives and issues that have been raised. if there was one area we learned from the financial crisis in 2008, was that the regulators did not have

reserve loans also the g.a.o. found that at least eighteen current and former fed board members were affiliated with the banks and companies they received emergency loans from the fed so do you think this bill is going to go anywhere because there are a lot of vested interests that will not want to even i mean it's a it's a small i mean i applaud british senator drawing it but the entire i mean bernie sanders wants to take this the federal reserve has taken in treasury all right i think you just get it all together and you have the same conflicts i mean come on one of the first it was i did it was very private it's run by the banks but if it's run by the u.s. government that's not any better they're doing the if you look at the structure it's freshest ok it's a public private enterprise so i mean it's got shareholders but they can't sell the shares it's not it's you just get rid of it completely the fact that. it's a trying still thing here and there but i mean i wouldn't even concern myself with giving jamie off

even such a student and critic of the federal reserve said that the performance of the federal reserve was extraordinary and excellent. >> did it fuel the leverage that led to this housing boom? >> no. i think the housing boom comes out of a different force. it was low interest rates that induced the housing boom but it was low long-term interest rates. remember housing is a long-term assets and mortgages are long-term. it is not effected by overnight rates. and indeed what caused this extraordinary housing boom was the remarkable change that occurred after the fall of the berlin wall. and all of these very large so-called third world countries which are under one form of socialism or another -- >> had to buy the long term paper. >> they decided looking at what happened to the soviet system, they switched in china and became the most capitalist economy in the world. and the extent of the growth in china is really a tributet to capitalism if i may put it that way. but effectively what that was doing was creating a huge increase in income. remember that the rate of increase in the develo

has there been -- is there significant data within the federal reserve on measuring that? >> so, we put out our proposal for section 165 in december in the comment period recently closed. one thing we asked for comment for was exactly the question of what would the impact of the single counter party credit limit proposal be, in terms of how constraining would that be for the banking agencies $50 billion and above. we have received a lot of comment and those comments do include some information about the impact, and we have done our own analysis through the supervisory process as well. so we will be using all that data as we move forward towards a final rule. >> so you did a cost benefit analysis on the proposal? >> we look at the cost and benefits of every rule that we put out on this particular proposal. we're still gathering information on the particular counter party credit limits that were proposed and the alternatives that were suggested by the commenters as well. >> have you done any analysis on the current level of exposurexp? >> yes. >> would you be willing to shar

so i would also tell you that the federal reserve, i've met a lot of people at the federal reserve, i have yet to meet somebody who had what i would call a sophisticated understanding of the insurance industry. >> it's a mismatch. >> right. so it worries me. we are already highly regulated by the states. the new york insurance department, you know, and the state of new york is, you know, i would argue the most sophisticated state regulator sophisticated state regulator who regulates us today. and they know what they're doing. >> can i ask a question? the aig i think was in five pieces of the company. did the insurance division ever -- was that ever at rising or were the illinois requirements so profound that none of the policyholders were in peril at any time? professor? >> if you look at aig's total capital and surplus and its insurance subsidiaries, it was substantially positive throughout the crisis. and the walls were in place that overall, if you aggregate it across those subsidiaries, aig had plenty of capital to meet its obligations to all policyholders. there has been some deb

reserve loans also the g.a.o. found that at least eighteen current and former fed board members were affiliated with the banks and companies they received emergency loans from the fed so do you think this bill is going to go anywhere because there are a lot of vested interests that will not want to even i mean it's a it's a small i mean i applaud british senator drawing it but the entire i mean bernie sanders version is going to take this the federal reserve has taken the treasury all right i think you just get it all together and you have the same conflicts i mean come on one of the first is i didn't know that any private it's run by the banks but if it's run by the u.s. government that's not any better they're doing i mean if you look at its structure it's freshest ok it's a public private enterprise so i mean it's got shareholders but they can't sell the shares it's not. just to get rid of it completely the fact that. they're trying to pull thing here and there but i mean i wouldn't even concern myself with giv

a hearing on the role and future of the federal reserve. after that, an updated plan for border security. >>> these men go through things and have scars that no one can understand except each other. >> the first thing that startled us was the relationship between herbert hoover and harry truman. they were different men and they ended up forming this alliance that neither of them would have anticipated. it ended up being enormously productive, and formed the foundation of what became a very deep friendship. the letters between them later in their lives are really extraordinary. >> it may be the most exclusive club in the world. michael duffy and nancy gibes on the relationships of the american presidents. sunday at 8:00. >>> at the state opening of the british parliament wednesday, queen elizabeth ii outlined the government's priorities for the kohling year. the last state opening was two years ago, shortly after the last general election. this is a little less than two hoursp >>> a very warm welcome to the program. it's been two years since

federal reserve an arm of the treasury. the other deals would make various changes either to the mandate or to the federal market committee's governance. as ranking member, i want to focus on the federal reserve dual mandate of maintaining stable prices. the growth act of 1970 a, better known as the humphrey-hawkins act, says benchmarks, growth, and price stability, and the balance of trade. to monitor progress, it mandated that the board of governors at the federal reserve presents semiannual reports to congress on the state of the u.s. economy. the humphrey-hawkins charges charges a dual mandate both maintaining stable prices and full employment. currently the unemployment rate is 8.1%. since president obama took office in january of 09, the unemployment rate has gone from 7.8% to around 10% as the impact of financial crisis spreads. i do believe the u.s. economy is heading in the right direction. as of march, at the consumer price index was 2.7 and%. over the past year a decline of 2.9 term. during the same time, energy

has there been -- is there significant data within the federal reserve on measuring that? >> so, we put out our proposal for section 165 in december in the comment period recently closed. one of the things we asked for comment for was exactly the question of what would the impact much of the single counter party credit limit proposal be, in terms of how constraining would that be for the banking organizations $50 billion and above. we have received a lot of comment and those comments do include -- we will be using all that data as we move forward toward the final rule. >> so have you done a cost b benefit analysis on the proposal? >> we look at the cost and benefits of every rule that we put out on this particular proposal. we're still gathering information on the particular counter party credit limits that were proposed and the alternatives suggested by the commenters as well. >> have you done any research on the current exposure? >> yes. >> would you be willing to share that data with us? >> in the proper way that doesn't require me to talk about confidential supervisory

as set down by the federal reserve, or whoever is doing it. if you see characteristic ever those trading patterns, that suggest proprietary trading, then you go look at it. you can, last extreme, go to the trading desk and see what they are doing. if they say it is customer trade, who is the customer. or why were you buying all these he is chiropract securities? you weren't in the market buying the same security all morning. you're not in the market and there's no customer on the other side. or you're not market making for a customer. you don't have to look at it in that detail unless you were very suspicious. and i assume that in good faith, with the management understanding what's at stake, and that their reputation is at stake with the regulator, they will take due care. >> okay. i'm out of time, thank you mr. chairman. >> thank you, sir. >> i've had traders, people who ran trading desks in the past tell me, a matter of fact, they said don't believe all this stuff. i ran a trading desk, it was the policy of the institution not to do proprie

reserve loans also the g.a.o. found that at least eighteen current and former fed board members were affiliated with the banks and companies they received emergency loans from the fed so do you think this bill is going to go anywhere because there are a lot of vested interests that will not want to even i mean it's a it's a small i mean i applaud british senator drawing it but the entire i mean bernie sanders version is going to take this the federal reserve has taken the treasury all right i think you just get it all together and you have the same conflicts i mean come on one of the first is i didn't notice any private it's run by the banks but if it's run by the u.s. government that's not any better they're doing and if you look at the structure it's freshest ok it's a public private enterprise so i mean it's got shareholders but they can't sell the shares it's not it's you just get rid of it completely the fact that it's a driving school thing here and there but i mean i wouldn't even concern myself with giving

crozner served as governor of the federal reserve system from 2006 to early 2009. during his time as a member of the federal reserve board chaired a committee on supervision and regulation of banking institutions and the committee on consumer and community affairs. dr. hoenig, you first. >> thank you. chairman brown, ranking member corker. thank you for the opportunity to testify on issues relating to improving the safety and sou soundness of the nation's banking system. having joined the ford board of fdic a month ago, it's a pleasure to serve. we can draw from collective experiences and diverse backgrounds that will inform our discussions and decisions going forward. this subcommittee asked me to discuss a paper title restructuring the banking system to improve safety and soundness. i prepared with my colleague, chuck morris, in may of2011 whe was prosecute president of the federal reserve bank of kansas city. i welcome this opportunity to explain the recommendations in that paper. one note while i am a board member, on this, i speak for myself today. first, bank

in january, the federal reserve released a white paper entitled the u.s. housing market current conditions and policy considerations. in this paper the fed said the housing market poses a significant barrier to more rigorous economic recovery. one of the bieriers identified in the white paper includes obstacles to refinancing at today's low interest rates. the plan identifies removing barriers as part of the solution. while fhfa made some changes to the program last year at the urging of members of congress and the administration, i continued to hear from constituents and the housing industry that more could be done to encourage competition in the refinancing market and give homeowners more

has there been -- is there significant data within the federal reserve on measuring that? >> so, we put out our proposal for section 165 in december in the comment period recently closed. one thing we asked for comment for was exactly the question of what would the impact of the single counter party credit limit proposal be, in terms of how constraining would that be for the banking agencies $50 billion and above. we have received a lot of comment and those comments do include -- we will be using all that data as we move forward toward the final rule. >> cost benefit analysis on the proposal? >> we look at the cost and benefits of every rule that we put out on this particular proposal. we're still gathering information on the particular counter party credit limits that were proposed and theternatives >> have you done any research on the current exposure? >> yes. >> would you be willing to share that data with us? >> in the proper way that doesn't require me to talk about confidential supervisory information, i would be happy to provide more information, including the infor

they do not want the federal reserve board to care about unemployment. they want the board to only care about inflation. >> let me briefly translate that a little bit because this stuff can get sort of jargonny. the fed has two jobs which is the dual mandate. they're supposed to reduce unemployment and make sure we don't get a ton of inflation. there's a tension between those two because you have to trade off between the two of them. right now they're sitting there as unemployment is very high and inflation is very low. right? and so the obvious thing, as an amateur, not an economist, myself, but people who are watching this happen, say, look, we have very high unemployment. it's higher than it's been in a generation. we have long term unemployment that has tons of people sitting on the sideline, the fed should be doing so much more to get that unemployment down. there's still people on the federal reserve board that are saying, nope, nope, sorry, we've done all we can do, this is basically it, right? that is essentially the status quo right now? >> i th

that means five of them represent the 12 federal reserve banks. those bank presidents get chosen by the individual bank boards. what we have right now is instead of situation of five governors and five bank presidents and two empty slots. we still have the same amount of work that has to get done and now it's falling on the shoulders of ten people instead of 12. >> you're saying the center of gravity is tipped. it's local bank president who is are helping drive the policy. when ben bernanke goes to this committee, they're the ones who say basically, we're going to put more money into the economy. we're going to keep thing where is they are. we're going to take money out of economy. there's been a battle on this committee brewing over what the best path forward. >> there's definitely been a battle over thinking about, first of all, i think there's two issues. one is how much of our current downturn is still due to a shortfall in aggregate demand and easy impacted by monetary policy, and second of all, we really have a hard time forecasting where th

in lieu of abolishing the federal reserve, let's audit the federal reserve. let's bring transparency to the federal reserve. [applause] the federal reserve away from their dual mandate of price stability and full employment, which, in my opinion, is a strong u.s. dollar and weak u.s. dollar and it does not work. we need to have strong dollar policy is coming from the federal reserve. we need to have competitive interest rates when it comes to the federal reserve. and right now, if the federal reserve board to make interest rates competitive, we would be in the midst of a monetary collapse. [applause] >> i agree with them and the fed. [applause] unfortunately, here we go again. i have stayed true to this throughout the whole campaign. i will not stand up here in front of my family and like you. [applause] i will not tell you something that i will do something that i cannot do. the president cannot abolish the fed. congress created it and it can take it up. but i would repeal all legal tender laws. [applause] we return competing currencies to the market. heartb

so, in heeding those lessons the federal reserve and the federal government to take vigorous action to stop the financial panic and worked with other agencies and worked internationally with foreign central banks and governments. one aspect of the crisis that i think maybe doesn't get quite enough attention is the fact that this really was first of all a global crisis, in particular europe as well as the u.s. was suffering very severely from the crisis. but it was also a very impressive example of international cooperation and one particular date that i singled out here is october 10, 2008 and if that happened on that day there was a previously scheduled meeting of the g7 industrial countries that took place here in washington. the g7 are the seven largest industrial countries and the central bank and finance ministries of those seven countries came in at in washington. now, i will tell you a deep dark secret which these high-profile international meetings are usually a tariff aalborg because much of the work is done in advance by the staff and we have a discussion but it's a communiqu

for the financial stability oversight council and designated nonbank firms, or for the federal reserve in determining the standards that be applied to the firms. nevertheless, we nus get the prescription right. they are the largest in the united states. we are the only one that is also a bank holding company. our experience as an insurance company regulated by the federal reserve has provided us with unique insights into the pitfalls of applying the rules to noncompanies. it's because we do believe our insurance business should be regulated that we have decided to sell our depository business join the peers in being regulated as an insurance company. i plan to discuss three topics in my testimony today. first, wide regulated insurance activities do not pose systemic risks. in the event that we are named a nonbanks, why the prudential regulations must be tailored to the unique asset and liability characteristics. life insurance companies protect policyholders and beneficiaries from the loss of income that occurs as a result of debt, disability or retirement. in order to make good on the