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And Ben Bernanke gave his semiannual report to the house financial services committee today tomorrow he'll face the -- She talked about the economic and market stability and of course the discussion begs the question.
How we handle the too big to fail situation one congresswoman focused on that matter today joining us now for a Fox Business explosive.
Representative Jackie -- Democrat from California and a member of the financial services committee welcome representative thanks for coming on Fox Business.
-- -- what is that a couple things that I found very interesting that you pressed him on -- let's start with the too big to -- question.
He went after him talking about Bank of America out what gives you the impression that that needed to be stated do you get the sense that at some point Bank of America may falter and that once again.
It's too big to fail.
Well in many respects it is too big to fail it is the largest bank in the world now.
2.3 trillion dollars we've already invested 45.
Billion dollars into be -- -- in -- purchase of Merrill Lynch so.
What we have to do now is look at how -- we gonna shrink these companies or create disincentives for these companies.
To -- or continue to stay very large because.
Much of what we're hearing today in a subsequent hearing is that.
Too big to fail as any company over a hundred billion dollars in assets.
Well the exit strategy that you pushed him for -- -- get an answer on that.
Well it's hard to get an answer from chairman Bernanke from time to time right right yeah.
Now I think that what were what what I did hear from him that was very reassuring is that we've got to require greater capital.
From those institutions that are very large.
That we -- have.
More fees more oversight all of those things that frankly just weren't there over the last nine or ten year.
Looking up overall some of the other questions you pushed him on that one that caught my ear because I hear from -- taxpayers all the time -- You know -- we were sold the TARP saying hey you could make your money back and possibly even more.
Are we anywhere near close to that were you satisfied with the answer he gave you about taxpayers getting their money back eventually.
You -- what keeps ringing in my ears are the words about secretary Paulson at the time when he says when we're gonna.
Take this money for AIG at that point -- eighty billion dollars and where we're gonna make money on the field I think we're now.
In the -- for all the -- for about a 170 billion dollars that.
There is not a lot of confidence out there that we're gonna see all of that money coming back to the taxpayers.
We will see a large part of that money coming back Alley over 200 billion.
From all the banks that have received this injection.
You know I don't want us to be stupid about this and there's a part of me it feels like once again the government has been snookered the taxpayers have been -- as well.
Because Warren Buffett got a great deal with Goldman Sachs.
The deal we got with films that wasn't all that great -- what will make some money.
In the return.
The resources that we offered up to -- Goldman Sachs Huckabee nearly -- Warren Buffett representative spirit do you have confidence in Ben Bernanke going forward.
Lot of discussion about whether he may be moved replaced what do you think.
I actually think chairman Bernanke -- has weathered this storm pretty well I mean he has had remarkable challenges before him.
And he unions I think he's handled things as well as could be expected I frankly worry about who would be there to replace him.
Yet the steady hand in hand I think -- is is done fairly well by the consumers is regulation be that came out around consumer credit.
Was an important one of the credit card bill of rights would never pass the congress had it not been that the Fed -- Forward well before the name bandied about if there were replacement is Larry Summers.
Does that name worry you.
That name does worry me quite frankly and that's slash I'm putting my -- with chairman Bernanke and we'll continue to support.
Wow what worries you about Larry Summers.
I I don't I Larry Summers was part of the -- ball.
Back in the late 1990s under the Clinton administration that did not want credit default swaps to be regulated -- derivatives be regulated at all.
And look what that got us.
I feel very strongly having talked to work -- Who was then the CFTC -- -- record that it.
That there -- a lot of this is going on there and I think chairman Bernanke is not as tied to Wall Street.
As sound as Larry Summers has been.
Well that's the thing look -- -- it got us AIG.
Okay and that's not a problem where it was the cowboys' running around the Indians and nobody -- sheriff and so I think that.
This will be an interesting interest in development but.
We appreciate you and some of the other congress people doing the right thing questioning what makes our government great if if you know that's what we can do pushing pushing for the people thank you so much.
I thank you join us again representative Jackie -- Democrat.
From the state of California thank you very much of.
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