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Congressman that a congress in capita that you are -- yeah -- yeah I mean you're gonna vote today.
On the increased role of the Federal Reserve Bank congressman -- are you gonna vote for that.
Well you know we've got a lot to talk about whether the Federal Reserve is the right entity to be in the systemic monitor.
I think is open -- to discussion now remember what the president proposes a council.
Of regulators who would be sort of a free safety that would have a broad mission to just find those areas to identify that next day I'd hear that next Lehman.
We're really you know congressman capitalists of bail out orientation the whole point of this plan.
Is to make sure that we never have to put a bail out on the table again.
That idea is let's keep NI NE AIG is in the -- of the world and again not heavy handed.
You know it's often not the entities that create the -- but the activities within the entities so how -- we.
Keep an eye on that so that we never do have to bring.
A -- -- there again that's the whole point of this plan so you haven't decided if you're gonna vote -- out that.
Well you know that we we need to see legislation before we can say whether we're voting here and they look the question to me of whether the Fed is it to empowered by this.
Is a total red Herring.
The thing that each and every one of us in congress and frankly in this country need to worry about with respect to the Fed is that we don't do anything that the president and congress does absolutely nothing.
To compromise the independence of the Fed the monetary policy independence of the Fed.
When we start tinkering with that we are eroding one of the sort of foundational aspect of our economy so.
To me this whole question of power.
But they fit the point is that on the systemic side we simply need to do it right we can't probably go out and say hey your systemically important.
All of a sudden now you're systemically important you've got an implicit government guarantee so how we do it I think is much more important than exactly where this function sets.
A congressman -- I think -- the end of the day.
The American people want to know how this is going to impact them.
How big an impact their ability to buy a home how is -- an impact -- -- to get a mortgage to make sure that their securities are protected.
What is the net effect of all these changes.
Well mobility -- an obvious puzzlement happened oh yeah I was gonna say the stability of the mark.
It's -- and letting the markets.
Rebounded and and -- become the solid financial instruments that that we needed to be that means more credit for people that means more student -- that means more predictability in their financial futures.
And for seniors and others more predictable retirement accounts.
-- and so that means clear and concise.
Accountability but what the taxpayer does not need.
Is at at a furtherance of -- too big to fail or a bail out our winners and losers mentality.
That we've seen over the last year where you wake up Monday morning and find out who won and who lost.
And I think this we can reach a compromise on this we have a lot of similarity and thought here and so I believe that that's what's gonna get a solid taxpayer.
Thinking that their future is more predictable.
More and that they government is more accountable and we're not gonna put the taxpayer on the hook for more and more money.
Congressman Hines what are you even asked Treasury Secretary Geithner what what concerns you most about what you seen thus far.
Well I think something that we've touched on which says.
What exactly is that systemic regulator doing look I think we can all agree.
And -- sides get you know talk about bailouts in the heavy handed government and and the other side's gonna use different language the reality is.
That we were brought to our knees because certain institutions became too big to fail and we had no ability to unwind them and a logical and and and constructive way.
So the question as what happens two years from now when there's another one of those.
Do we identify them in advance as I said earlier I think you have to be very very careful about that and then once identified.
What do we do with them what sort of power do we have to say guess what you now are so risky that you could bring down a half dozen banks what where does the conversation go from there.
To me in reviewing this plan a lot of the stuff is pretty commonsensical.
The details about how we resolve and think about systemic risk are very very complex and I think that's the kind of the key area.
Of inquiry I've got with a Treasury Secretary today all -- representatives will leave it there will be watching news starting at 9:30 this morning and -- Treasury Secretary Geithner will be testifying with you guys thank you so much for taking the time.
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