CongressionalHearings/Dodd-Frank/CHRG-111shrg50564/CHRG-111shrg50564--10.txt So you had an underlying economic problem , but on top of that , you had a very fragile , as it turned , highly engineered financial system that collapsed under the pressure . CongressionalHearings/Dodd-Frank/CHRG-111hhrg48868/CHRG-111hhrg48868--236.txt Mr. Polakoff , '' In 2004 , we failed to assess how bad the mortgage economy , the real estate economy would become in 2008 , yes , sir . '' CongressionalHearings/Dodd-Frank/CHRG-111hhrg55809/CHRG-111hhrg55809--165.txt And finally , I did want to respond to the gentleman from California , who is not here , Mr. Royce , who said that Congress led to Fannie and Freddie being 50 percent in Alt-A and subprime . CongressionalHearings/Dodd-Frank/CHRG-111hhrg48874/CHRG-111hhrg48874--142.txt It is normal practice in some sectors of commercial real estate lending for the bank to fund an interest carry . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53021/CHRG-111hhrg53021--54.txt What the economy is going through is a necessary and very healthy adjustment , as families and the Government of the United States goes back to living within their means . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt Commercial banks extend approximately 53 percent of non-real-estate loans to the farm sector and 38 percent of the real estate credit . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt Twenty-six percent of lenders think the probability is very high that producers will experience financial stress in the next 3 years . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt For the second quarter of 2009 , respondents expect higher loan demand for operating loans and USDA guaranteed loans . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt --------------------------------------------------------------------------- \ 7 \ The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District , which includes Texas , northern Louisiana , and southern New Mexico . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt Mr. Chairman , community banks did not cause the current financial crisis , fueled by exotic lending products , subprime loans , and complex and highly leveraged investments . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt --------------------------------------------------------------------------- The Federal Reserve Bank of Chicago \ 8 \ reports sale of farms were below the levels of the prior year . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt In recent testimony before the House Agriculture Committee , the Federal Reserve Bank of Kansas City stated that despite some increasing risks in agriculture , ample credit appears available at historically low interest rates . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt The Federal Reserve Bank of Minneapolis \ 6 \ reports farm income , capital expenditures , and household spending decreased in the first quarter . CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--81.txt This is important since small businesses represent 99 percent of all employer firms and employ one-half of the private sector workforce . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--116.txt If a consumer has a temporary setback in income , credit cards can provide the consumer with enough funds to hang on until their financial situation reverses . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--116.txt As an initial matter , it is important to emphasize that the Federal Reserve 's new regulations do not prohibit risk-based pricing . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--116.txt Consumer Disclosure : You state that the sheer number of price mechanisms make it difficult for consumers to accurately and easily gauge the cost of credit . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--116.txt You seem to suggest that credit cards should become much more plain vanilla because people simply ca n't understand the different uses and costs for those uses . CongressionalHearings/Dodd-Frank/CHRG-111shrg56415/CHRG-111shrg56415--83.txt Finally , I will address the Federal Reserve 's regulatory and supervisory responses to these challenges.Conditions in Financial Markets and the Economy Conditions and sentiment in financial markets have continued to improve in recent months . CongressionalHearings/Dodd-Frank/CHRG-111shrg56415/CHRG-111shrg56415--83.txt Contributing significantly to better performance was the improvement of capital markets activities and increases in related fees and revenues . CongressionalHearings/Dodd-Frank/CHRG-111shrg56415/CHRG-111shrg56415--83.txt It will take time for the banking industry to work through these challenges and to fully recover and serve as a source of strength for the real economy . CongressionalHearings/Dodd-Frank/CHRG-111shrg56415/CHRG-111shrg56415--83.txt However , the unemployment rate has continued to rise , reaching 9.8 percent in September , and is unlikely to improve materially for some time . CongressionalHearings/Dodd-Frank/CHRG-111hhrg52400/CHRG-111hhrg52400--116.txt Mr. Price , '' So there is a line beyond which we go -- if we go beyond -- that results in limiting the ability of you to serve customers and help Americans insure themselves in various ways ? '' CongressionalHearings/Dodd-Frank/CHRG-111shrg54675/CHRG-111shrg54675--62.txt My perspective from Michigan is , you know , the one thing about high unemployment is that its effects are fairly predictable and its effects are very , very broad and very deep . CongressionalHearings/Dodd-Frank/CHRG-111hhrg48874/CHRG-111hhrg48874--113.txt We heard yesterday or this week that Mr. Geithner layed out that plan , and it puts FDIC as the 95 percent guarantor of those obligations that are created . CongressionalHearings/Dodd-Frank/CHRG-111shrg53085/CHRG-111shrg53085--34.txt The first one is for better Federal standards , and the second one is to acknowledge that the Federal Government can not do it all and to let the States come back into consumer protection in enforcement and in the development of standards . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53241/CHRG-111hhrg53241--21.txt First of all , NAAHL supports Chairman Frank 's decision to preserve the bank regulators ' role to enforce the Community Reinvestment Act -LRB- CRA -RRB- . CongressionalHearings/Dodd-Frank/CHRG-111hhrg48874/CHRG-111hhrg48874--37.txt I think , to your first question , I do believe , I honestly believe that the Federal Government has made every response we can think of to make , in particularly the Federal Reserve , in order to ensure that lending is continuing to take place . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--121.txt However , the Federal Reserve rules still preserve the ability of card issuers to price for risk in many circumstances , if they wish . CongressionalHearings/Dodd-Frank/CHRG-111shrg56262/CHRG-111shrg56262--16.txt I would like to thank the Committee for the opportunity to share our views on securitization , which is crucial to borrower access to credit and our overall economy . CongressionalHearings/Dodd-Frank/CHRG-111hhrg51585/CHRG-111hhrg51585--77.txt Mr. Hullinghorst , '' Mr. Chairman , as a matter of fact , Boulder County is planning on going into the municipal market in about 15 days , and we anticipate getting a fairly good rate . CongressionalHearings/Dodd-Frank/CHRG-111shrg54789/CHRG-111shrg54789--187.txt Advertising regulations have long been a core element of Federal consumer protection statutes such as the Truth in Lending Act . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53234/CHRG-111hhrg53234--105.txt Mr. Kohn , '' In March , the Federal Open Market Committee decided to purchase up to $ 300 billion of Treasury -- intermediate and long-term Treasury securities . CongressionalHearings/Dodd-Frank/CHRG-111shrg50815/CHRG-111shrg50815--11.txt Mr. Levitin , '' Good morning , Mr. Chairman , Ranking Member Shelby , and members of the Committee . CongressionalHearings/Dodd-Frank/CHRG-111shrg56415/CHRG-111shrg56415--35.txt Mr. Tarullo , '' What I hope is that this Committee and the Congress as a whole will pass a strong set of reforms , no matter what other people out there are saying .