CongressionalHearings/TARP/CHRG-110hhrg46596/CHRG-110hhrg46596--197.txt Mr. Kashkari , '' Congressman , there is no question that clarity and certainty are very important for developing market confidence . CongressionalHearings/TARP/CHRG-110shrg50410/CHRG-110shrg50410--6.txt This is consistent with Treasury 's mission to promote the market stability , orderliness , and liquidity necessary to support our economy . CongressionalHearings/TARP/CHRG-110shrg50410/CHRG-110shrg50410--6.txt This role for the Federal Reserve with respect to the GSEs is consistent with the recommendation made in Treasury 's Blueprint for a Modernized Financial Regulatory Structure . CongressionalHearings/TARP/CHRG-110shrg50410/CHRG-110shrg50410--6.txt Therefore , after consultations with the Federal Reserve , OFHEO , the SEC , and congressional leaders , we are asking Congress , as it completes its work on a stronger GSE regulatory structure , to also enact a three-part plan to address the current situation . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--3.txt Certainly in recent months , no one can accuse Chairman Bernanke , Secretary Paulson , Chairman Bair , and others of timidity in the face of this crisis . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--17.txt Despite efforts over the past year by the Federal Reserve , the Treasury , and Congress to stem the crisis , global financial markets remain under extreme stress . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--52.txt At the Federal Reserve , we have sought to address financial market stresses with as minimal exposure for the U.S. taxpayer as possible . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--52.txt I also appreciate that the Congress and the Administration are working closely together and we have been for a number of days now so that we can help the American people by quickly enacting a program to stabilize our financial system . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--52.txt The events leading us here began many years ago , starting with bad lending practices by banks and financial institutions and by borrowers taking out mortgages they could n't afford . CongressionalHearings/Dodd-Frank/CHRG-110hhrg46591/CHRG-110hhrg46591--223.txt I propose today , Mr. Chairman , I would share with you five near-term regulations the Financial Services Roundtable have . CongressionalHearings/Dodd-Frank/CHRG-110hhrg46591/CHRG-110hhrg46591--223.txt So if mortgage rates do not fall , then we urge Congress , the Treasury , and the Federal regulatory agencies to consider additional appropriate actions . CongressionalHearings/TARP/CHRG-110hhrg46596/CHRG-110hhrg46596--64.txt Mr. Kashkari , '' Good morning , Mr. Chairman , Ranking Member Bachus , and members of the committee . CongressionalHearings/TARP/CHRG-110shrg50415/CHRG-110shrg50415--91.txt Mr. Ludwig , '' This mortgage broker situation is really pernicious , Mr. Chairman , and what the Congress has done under your leadership is very important . CongressionalHearings/Dodd-Frank/CHRG-110hhrg44900/CHRG-110hhrg44900--18.txt First , Americans have come to expect the Federal Reserve to step in to avert events that pose unacceptable systemic risk . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--25.txt Any plan that is considered by this Congress must include at least four points : Number one , independent oversight about how this money is being spent so we can avoid a future financial crisis . CongressionalHearings/TARP/CHRG-110hhrg46596/CHRG-110hhrg46596--254.txt Mr. Kashkari , '' Congressman , I feel confident that the financial system is stronger than it was when the Congress acted so quickly . CongressionalHearings/Dodd-Frank/CHRG-110hhrg46591/CHRG-110hhrg46591--44.txt Mr. Seligman , '' Mr. Chairman , we have reached a moment of discontinuity in our Federal and State systems of financial regulation that will require a comprehensive reorganization . CongressionalHearings/Dodd-Frank/CHRG-110hhrg46591/CHRG-110hhrg46591--44.txt But to create a single clear crisis manager only begins analysis of what appropriate structure for Federal regulation should be . CongressionalHearings/TARP/CHRG-110shrg50410/CHRG-110shrg50410--9.txt Mr. Cox , '' Thank you very much , Mr. Chairman , Senator Shelby , and Members of the Committee , for this opportunity to describe the SEC 's actions to deal with the recent developments in our financial markets . CongressionalHearings/TARP/CHRG-110hhrg46593/CHRG-110hhrg46593--14.txt That oversight board includes the Secretary of the Treasury , the Secretary of Housing and Urban Development , the Chairman of the Securities and Exchange Commission , the Director of the Federal Housing Finance Agency , and the Chairman of the Federal Reserve Board . CongressionalHearings/Dodd-Frank/CHRG-110hhrg46591/CHRG-110hhrg46591--3.txt Fourth , we must maintain present firewalls , eliminate current loopholes , and prevent regulatory arbitrage in the new regulatory system . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--55.txt Despite the efforts of the Federal Reserve , the Treasury , and other agencies , global financial markets remain under extraordinary stress . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--55.txt In the case of Lehman Brothers , a major investment bank , the Federal Reserve and the Treasury declined to commit public funds to support the institution . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--55.txt In this regard , the Federal Reserve supports the Treasury 's proposal to buy illiquid assets from financial institutions . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--172.txt Working with the Treasury , the FDIC , and other agencies , the Federal Reserve believes that we must take all steps necessary to minimize systemic risk . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--172.txt An example is the Term Asset-Backed Securities Loan Facility , which calls for an equity investment by the Treasury Department and credit provided by the Federal Reserve . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--172.txt In many cases such consultations have been organized by Treasury Department and have included a wide range of government agencies . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--172.txt Indeed , consistent with that intent , the Federal Reserve has , since 2006 , published a separate rate series for asset-backed commercial paper . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--47.txt But the Comptroller of the Currency , FDIC , the Federal Reserve -- we have Governor Duke here -- these are all regulators of the banking system . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--29.txt As provided in the Act , the Federal Reserve Board and its staff are consulting with Treasury regarding the TARP and Chairman Bernanke serves as Chairman of the Oversight Board for TARP . CongressionalHearings/Dodd-Frank/CHRG-110hhrg44900/CHRG-110hhrg44900--12.txt Our financial institutions are repricing risk , de-leveraging , recognizing losses , raising capital , and improving their financial position . CongressionalHearings/Dodd-Frank/CHRG-110hhrg46591/CHRG-110hhrg46591--47.txt All significant U.S. financial institutions that provide credit have some form of access to Federal Reserve liquidity facilities at this time . CongressionalHearings/Dodd-Frank/CHRG-110hhrg46591/CHRG-110hhrg46591--47.txt One of the major reasons why excesses developed in housing finance was a failure of Federal regulators to adequately supervise the behavior of bank holding companies . CongressionalHearings/TARP/CHRG-110hhrg44903/CHRG-110hhrg44903--3.txt On July 15th , the SEC also noted that it will undertake a rulemaking to address these issues across the entire market . CongressionalHearings/TARP/CHRG-110hhrg44903/CHRG-110hhrg44903--5.txt In closing , both the Commission and the New York Federal Reserve have played crucial roles throughout the current financial crisis . CongressionalHearings/TARP/CHRG-110hhrg44903/CHRG-110hhrg44903--14.txt Mr. Chairman , I hope that these observations from the SEC will be of assistance to you and to the committee as you consider the broad questions of whether and , if so , how to reform the existing Federal regulatory system for financial services .