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tv   Bloomberg Markets Americas  Bloomberg  January 19, 2017 10:00am-11:01am EST

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confirmation hearing for treasury secretary. we've got the highlights from the testimony which includes defending his record as andmanager of one west outlining his qualifications for the job including his 17 you hear -- 17 year career at goldman sachs. we will be watching the questioning from senators closely because he can be fielding anything on topics like economic sanctions, tax reforms, banking regulations, a strong dollar and there is so much to talk to him about not to mention fannie mae and freddie mac. areing us from capitol hill our reporters.
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on capitol hill, what is the anticipated first two questions going to deal with? will it be regulations or his personal conflicts of interest? >> i was just outside the senate finance committee hearing room where a bevy of activity is taking place as we anticipate this hearing to get started at any moment. already looking to define him as someone who is out of touch with the middle class. they even have former clients of one west bank and they will talk to reporters. recruitedchin has other folks looking to argue quite the opposite and that he was able to help people particularly low income folks merger. one west the take away there will be a lot of pressure on his previous financial dealings. to marsha question
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blackburn, a republican, about how they will defend. will come back to that and in a moment, thank you. let me go to jim milstein. it sounds like they will talk character and so forth as opposed to actual policy. does he get confirmed? >> we will see. onhink they have the votes the republican side to confirm all of these nominees. these hearings are important to flesh out his background and experience. this is like spring training. the treasury secretary will be on the hill talking to both sides of the aisle about important initiatives and objectives and reporting in his capacity as the primary supervisor of the financial
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system on the state of the economy in the state of the financial system. this is round one assuming he is long -- the a beginning of a long friendship or the start of a relationship. the big topic is reflected in the fact that he spent the bulk of his opening remarks on his time at one west. it begs the question, did he run a foreclosure machine or a loan modification machine? that's what he wants us to believe. saying there are two groups of people in washington, ones who will testify against him and saying they were of victims of foreclosure and another group of people who were involved in the one west takeover. stevene there to say mnuchin came in and bought this.
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the trouble for steven mnuchin will be that they are both right. he was part of a group of investors who are willing to off the take indy mac hands of the fdic. it was at the bottom of the crisis when things were looking terrible. hand, they had the reverse mortgage operation. lots ofeclosed on people. he will have to talk about that. bank ran a relatively big after the greatest financial crisis of our lifetime centered on the mortgage market. fiduciary for his shareholders and investors, he had to maximize the value of the assets which included mortgages in the fault. -- regulatedse institution to keep people in their homes, he had to comply with those rules as well. it's both stories that are true.
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chairman ofave the the senate finance committee, orrin hatch, giving his opening statement. after that, we will hear from the ranking member and it will likely be the testimony of steven mnuchin himself. overall iscriticisms that many people heard by the goingial crisis are not to be held by an administration full of steven mnuchin and wilbur ross and various people. it does not matter how much someone earns in a year. government is not created overnight with a new administration. there are a series of statutes and policies and regulations in programst he inherits, and policies that are ongoing and continuing that he will be in charge of.
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unless congress changes its mind and repeals dodd-frank, he has a series of supervisory responsibilities and regulatory responsibilities that the statute imposes on him. the united states government, although we have this ritual of changing presidents every four or eight years, the truth is that government is large. it's a super tanker it has direction and history and he will inherit that. thate: we saw a report there are more millions there. how important is that to most americans? >> this is an election in which inequality and a disproportionate distribution of wealth and income played a big part. the president-elect has obviously chosen to staff his administration with people he knows. he has added a number of millionaires and billionaires to the mix of his cabinet. the point is that whether you
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are a law professor or an investment banker, you have a fiduciary and legal responsibility in each of these roles that the congress will hold them to. mark: some of those cabinet members are goldman sachs alumni. to what extent to these former reflectsachs employees the values of the wider american public given that donald trump was so critical of wall street during the campaign? critical butas he his closing ads of the campaign ofked about thecabal criminal elites stealing from the working class and the h lee decimate literally showed lloyd blankfein. in the last few weeks, he has
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nominated several from goldman sachs. it's about half a dozen people from goldman sachs. that might be reassuring on wall street. hand, it's a remarkable departure from the populism of the campaign trail and i think it will put steven mnuchin under pressure today. about: what do we know his stance on a stronger dollar or china or regulations or even on the mortgage market? i think the new administration is feeling its way through a series of conflicting policy initiatives they have proposed. the border tax adjustment or an import tax or tariff. economics behind that assumes a stronger dollar to offset the tariff war tax that would be placed on imports. --that it does not improve
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increase the cost of goods. you heard the president elect the other day say i'm not so sure i am a strong dollar guy. they are here to promote exports and a strong dollar is contrary to that. i think they are feeling their way between campaign slogans and promises and actual hard details of policy. it's a little like the repeal and replace problem. for the last four years, the republican congress has talked only about repeal and now that they are the governing party, they realize they have to have an alternative. the details of policymaking are much harder than the slogans of campaigning. i think they are all feeling their way. vonnie: jim milstein, thank you. speaking,tch is still the senator from utah who is the chairman of the senate finance committee. he says no rules were violated by steven mnuchin.
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we are just getting going on this hearing. is staying with us. for more on the hearing, let's go over to david weston. david: we are joined by a stein,l guest, ken duber the chief of staff of ronald reagan. >> my pleasure to be with you as always. we are watching as steven mnuchin sits there waiting for his opening statement and you have been through quite a few of these proceedings. .ake us behind the scenes what does steven mnuchin need to a cop push today? reassure theo senators orrin majority of them on the committee that he is the right version to be treasury that will give
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candid, good advice not only to the president and vice president but also be straight with the congress. he ranges in his portfolio everywhere from tax reform to monetary policy, fiscal policy. to reassuread range the senators that he is the right person for the job. especiallysmall task to be treasury secretary. is the steven mnuchin person who not only has the confidence of president-elect trump but also somebody who is a wise old hand and experienced on wall street which she -- which should be reassuring. served in a republican administration but put yourself on the other side of the aisle. the democrat several reservations about steven mnuchin's dealings with his
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bank. are those disqualifying? the legitimate question that democrats will raise, this thing wrong with raising them, but i think he deserves the benefit of the doubt. i think he will be strongly confirmed by the united states senate unless something that we note -- that we don't know anything about happens in the next few days but i would doubt that seriously. as indicatedetting he has a clean bill of health to go forward and i would imagine the senate will confirm him handily. david: put this process in a broader perspective of that first 100 days with the presidency. how important is it for the president to get his team on the field from the beginning and what does he need to do over those first 100 days? be that hety has to is not home alone and not the only person in the united states government representing the
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president himself. he needs his cabinet officers in place. he needs his team in each of the cabinet agencies in place. he needs to fully staff and stock the white house. they will hit the ground running starting at high noon tomorrow. that is not an easy assignment. remember, and no one knows where the bathrooms are. most of the people have never been in government before. it's a whole different menu of activities, responsibilities. the art of governing is much different than the art of campaigning. in the art of governing, it you have to make love sometimes to your strongest adversaries. you are notey know their strongest supporters and i don't know people are well equipped to do that but it's something that will take time.
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there is an artificial deadline of 100 days. new world order, you are talking about 100 minutes or 200 minutes but not 100 days. what people want to see is change. that's what they voted for. changes ino see washington, changes in how the government works, how the executive branch works, how the executive and legislative branches come together. i think you will see with president tromp an awful lot of activity, a lot of announcements, a lot of action that takes place over the next several days that will capture the american people's attention. whether they agree or disagree, they know there is a new sheriff in town and his name is donald trump. david: we are struck by the fact
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that the cabin at president-elect will gather has strong-willed people, very successful people that sometimes have different points of view. you are chief of staff for ronald reagan, how did you help him bring them all together to make sure you had strong people pulling in the same direction? >> ronald reagan used to remind everybody that the reason why god gave you one mouth and two ears is you have to listen. then make your own decision. no decision that comes to the oval office is easy. but you are getting the best advice, the most candid, s2 to advice you can get not something for the white house staff but each of the cabinet officers. of course you want strong-willed people. you want people who are accomplished, people another fields. but it's ultimately the president's decision. the answer is to bring them all together. what ronald reagan understood was that governing is also compromise.
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he always wanted to win. he wanted to achieve things for the american people. what hundred percent or nothing and ronald reagan would say i will take 80% every time and i will come back the next year for the additional 20. that's what governing is all about. me that the pragmatism wins out. david: there are a number of people trying to draw the parallel between donald trump and ronald reagan. you knew ronald reagan well. how do you think they stack up? where are the differences and similarities? tweet are now in this world we did not have the advantage of. it's a mass media world. ronald reagan always enjoyed being underestimated. i think donald also feels like he is underestimated.
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ronald reagan was an ultimate pragmatist. he wanted that 80% to get things done for the american people. i think donald trump is very similar. that does not mean that president reagan was not strongly ideological. the fact is, he knew he had to be pragmatic. all the slings and arrows that went at the beginning, jim baker and mike cheever and ed meese or the latter years, the answer is the ultimate pragmatist in the white house was ronald reagan. i would imagine when push comes to shove, donald trump will be very similar in being the ultimate pragmatist to get things done and make a better world for the american people. and the rest of the free world. david: thank you very much. thank you for that
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interview and we will bring you special coverage of the inauguration of the 45th president of the united states right here on bloomberg starting tomorrow at 10:00 a.m. eastern. due respect posts will be back for that coverage as well. hearing, wen that have ranking member of the senate finance committee ron youn are from oregon saying don't want to hear the words foreclosure machine, redlining, offshore funds and predatory lending. we earlier had orrin hatch the committee chairman saying that charges of steven mnuchin's business contributing to the financial collapse is only hearsay. on capitol hill, democrats don't
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have enough to block this confirmation, do they? at the hearingy with senator elizabeth warren, she was joined by several of her colleagues in the upper chamber within the democratic party. of the with several senators after the shadow hearing where they attacked steven mnuchin and said privately that they don't believe they have what it takes in order to flip some of the key republicans within the senate to block his nomination. this is to suggest that what we are seeing with these coordinated attacks against even engine is that they are trying to largely define him before he assumes the position of treasury secretary. mark: one of the most interesting elements of today's hearing should be the donald trump tax reform plan. independent assessors suggest
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the loss over decades could be in the trillions. account for that? if you are cutting taxes, this is a separate question -- how are you boosting infrastructure? >> the infrastructure plan is something that wall street is excited about. will be ahat it public-private partnership as a way to make money. that is also something that leaves steven mnuchin vulnerable today. will barack's had his hearing before the commerce committee yesterday and he just glided through. if steven mnuchin can have a hearing late wilbur ross had , he is worth like $3 billion, no one is interested how he made his money and no one seemed interested in his private equity firm. no one seemed interested in grilling out about the emperor structure plan or the conservative tax foundation that the trump plan would add four trillion dollars to the debt.
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maybe no one is interested. they the feeling is that cannot stop ross and many agents of the best they can do is turn -- andlic against them steven mnuchin and the best they can do is turn the public against them. mark: talk to me about fannie mae and freddie mac. there has been talk about returning them to private ownership. how do you achieve that? will he be asked about that but one of his investors was hedge fund billionaire who has major investments in fannie mae and freddie mac. want to stay steven mnuchin in his ethics disclosures said he stakes in his hedge fund that makes fannie mae and freddie mac investments. he will be asked about the privatization but also the way
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his friends provident from it. -- profit from it. desert glidedided through yesterday so my bet is that they will pick one or two places where they will hit him. we will see if they get to fannie mae and freddie mac but they very well may not. one senator has taken a stand by sending a letter to the fbi director on the idea that relativity media which is a that steveny mnuchin helped run and produced movies, loaned money to one west which used to be indymac and there was some kind of shifting of money and it was not correct. what would the fbi have to do with that? my colleague and i wrote the profile of steven mnuchin a few months ago. there was a piece a couple of that steven mnuchin
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had an at greece stake in his hollywood studio which ended up tanking and he was loaning money to it. steven mnuchin says he is done nothing wrong but if the fbi is getting involved, somehow that means there must be a criminal issue with conflict of interest. i don't know how interest of senators are in attacking things beyond the potential victims of the one west foreclosures. if they go after stephen, when i interviewed him for the business he would get pretty sensitive woman he asked harder questions. habit ofverbal tick saying "again". if he starts feeling defensive and the hearing gets emotional today, i'm not sure how well he will handle it.
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things could get heated. he didn't talk about banking regulation. is he against dodd-frank or for watering down parts of it? does he want to strengthen the supervisory bodies to not be as stringent as they have been since the financial crisis? where does he stand when it comes to the regulation of wall street? the sources i speak with within the trump transition team particularly on the trump economic team tell me that the economic plan you will see within the trump administration and through steven mnuchin's policies would embolden these advisory boards at the federal reserve to have more power in negotiating international
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economic agreements in terms of regulatory regimes. with regard to dodd-frank, what you are starting to see is -- andmnuchin and jeff jeb hensarling as senator mike crapo, the banking committee chairman, all starting to put together behind the scenes and agenda of how exactly repealing parts of and walking back parts of the dodd frank bill would look like. there was aer day, meeting between jeb hensarling and statement edging discussing this topic along with tax reform. steven mnuchin has been making the rounds a meeting with key lawmakers ahead of this hearing and met with key members of leadership within the republican party to begin mapping out that agenda. he wills the criticism receive today within the hearing from democrats, the capitol hill aides i am speaking with are
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telling me that they will try to portray steven mnuchin as part of the way in which donald trump whoe into power as someone is, while connected to goldman sachs, is also a political outsider of sorts. inauguration being tomorrow , even if he has a couple of hiccup today, it could change the narrative tomorrow. you soft and -- soften dodd-frank or the volcker rule? how do you reduce the powers of the new consumer financial protection bureau at the same time with sustaining financial safety? how do you achieve both things at the same time? thinkt's the question i the trump political orbit is grappling with now.
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on the campaign trail, what we heard from donald trump is self -- himself and his top economic surrogates is that this is about economic choice, economic freedom. they continuously tried to paint this issue is something where regulation and overregulation was crippling mainstreet economic growth. in terms of messaging, what you see and we already see it in the hallway outside of the finance committee hearing room where that hearing is underway, you will be seeing a lot more surrogates, a lot more diverse pool of surrogates telling their stories about how growing the economy through deregulatory policies helps americans and not just people like steven mnuchin and wilbur ross and goldman sachs. of the problem with the hearings is that senators
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don't have opposition votes that will stalemate the hearing so they can ask whatever they want. what will make headlines today? >> there is a sense that it's just a show. if there is no actual threat to steven mnuchin, the point of what we are about to watch is at least we get a chance to hear him talk about what he believes. aside from the questions about when he talks about deregulation, i remember that during the financial crisis, jamie dimon later said he told one of his daughters who was young and said there was a financial crisis and she said what's that. he said it's something that happens every 5-7 years. where more than seven years past
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the financial crisis and there is all this talk of deregulation. one thing i would like to hear about is if they are eager to loosen regulations against wall street banks, what does that mean for the system? up to bee also rose under treasury secretary john paulson at the time. he has been at every level of banking. these hearings tend not to get into policy. the incoming administration is not had to put forward syria's policies on anyone issue. anyone knowsre what steven mnuchin feels about certain things. i would like to know what he feels about the cfpb. we know what donald trump thinks about it. he probably doesn't feel very
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positively. vonnie: what are his powers? can a unilaterally decide anything? >> he will be immensely powerful. he will be as responsible for the shape of the u.s. economy as anyone and yet he is a guy that was referred to as a political outsider. they were hoping to position him that way. he is the son of a goldman sachs and is and went to yale as institutionalized you can get outside thert of normal sphere of politics and we don't know how he feels about anything. it will be amazing to watch the senators. i don't think it's begun yet. the representative from california is one of the first witnesses. they are moving into witnesses.
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is he going to consider 50 or 100 year treasuries? it would not be beyond belief if that's where things went today. i don't think that will happen. willstinct is that they spend one hour talking about one weston indymac and there will people that insist that he does a great job in other people will talk about financial freedom. treasuries,into that would be revolutionary. this market is going through a massive change, a massive evolution. it's the most liquid debt market in the world. we've got high-speed trading. is testing the market resiliency and volatility is on the rise and investors are baffled. this would be a fascinating area
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to start talking about that. not very confident about many things and that has to be at the top of the list of how unsure i am that they would get into this. they've got these few hours before the inauguration tomorrow where democrats will hit steven mnuchin where it hurts and the republicans will try to position him in a positive light. mark: how would you hit him where it hurts? three questions? the threeurnalist, things i would be curious about would be to talk about his career at goldman sachs, his days at one west and talk about what he wants to do in this position of immense importance. i don't think anybody knows what kind of treasury secretary he wants to be. gotould be great if they into treasury bills but i don't think so. what measure of treasury
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bills are we talking about here? ofe us an idea of what form treasury secretary he might try to replicate. amazing we can focus on the treasury secretary's that have also come from goldman sachs. was 10 believed in the power of markets and hank paulson was from goldman sachs. in athough he was working republican administration, he used government intervention to save the financial system. i am not sure if steve mnuchin will be asked what will you do when there is a financial crisis in the next four years? will you use the power of the treasury and the united states
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government to save some of the banks you work for and that would put him on the hot seat. many say that hank paulson did not leave congress any choice during the bailout which shows you the power of the treasury secretary. has very low approval ratings. does the treasury secretary have to be popular? if we stopped in average person and asked to the treasury secretary was, would they say jack lew? i don't know how much focus there is on him. there is focus on the fact that donald trump spent months of the campaign promising to join the swamp of washington. this group he has nominated to help run the cabinet are people from private equity and goldman sachs.
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that does not mean they will be bad at their jobs. -- it's certainly what we will be hearing out in the next few hours. vonnie: going back to capitol hill, what is leaking around washington, d.c. on spot policies? dodd-frank, dodd-frank, and how he will strip key parts of that. conversations are already underway. i was speaking with a senior banking lobbyist and literally went through a checklist of the aspects of dodd-frank that they are bullish on repealing. when you take a look at the tea and howf the industry he responds to questions, it will be around which specific areas in the first 100 days he will get rid of. vonnie: let's bring in bill
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on how goldman sachs came to rule the world. sachsms the goldman dominance continues. yes, he is one of about five or six at the moment. howas everybody wondering this could happen because donald trump was so critical of goldman sachs throughout the campaign. repeal he will dodd-frank is if you look at what his list of things he is focused on for the first one hundred days, dodd-frank is not in that list. i am not sure he will immediately give a bone to wall street. that's not very popular and not very populist to reform some of the other things he talked about. i am not sure that will happen right away. vonnie: you had a great story in
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vanity fair recently and you was responsible for some of the misery that fannie mae and freddie mac and during -- endured. you say these policies will not be popular. does he care about being popular if he is treasury secretary? comparesk donald trump about being populist. steven mnuchin is merely a billionaire. he is concerned about making money as does wilbur ross. they will have to do what donald trump one them to do. -- wants them to do. inl street has rallied anticipation the dodd-frank would be repealed but i'm not certain that will happen in the first 100 days. mark: what elements of dodd-frank will be peeled back?
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>> the volcker rule does not make all a lot of of sense but things that do make sense that will be more difficult to repealed because the opposition would be reducing capital requirements. one of the good things about derivativess that are more transparent now. that helps derivative pricing. think you will get a repeal of higher capital requirements or a repeal of less transparency on derivatives. you might get a repeal of the volcker rule. a lot of good things came out of dodd-frank that will be
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probably capped. says the ruleson stymie his ability to lend. there is so much money locked away on a shelf, billions which could be put to better use. isn't that the core issue? >> i completely agree with that. you've got to let these banks lend because that goes to the heart of how capitalism works and how we increase the growth rate for gdp which donald trump has promised will increase to 4%. with that and the immense amount dedicatednt of people to compliance, one out of five people will get to that. it's gettingcohan. heated at the hearing so let's listen in. . >> he is a good member of the academy -- of the committee and we worked together on the ethics committee.
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i'm sorry if i have incurred your wrath. we have many colleagues waiting. >> i'm done, thank you. >> we will take your statement. >> thank you very much. chairman at, ranking member widen and members of the committee, it is an honor to appear before you today. humbled byul and president-elect trump nominating me to serve as secretary of the treasury. it is truly an honor and a privilege to be considered for this position. thank you to all the members i have already had an opportunity to meet with during this process. i enjoyed meeting with you and learning more about the issues that are important to you. i did notfew members get a chance to meet with, if confirmed, i look forward to meeting with you as well. i would like to thank chairman
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hatch and his staff are taking so much time to work with me and support me through this process. in addition, i would like to introduce my fiancee, louise lenton and my children emma, jp and dylan who are here with me today and thank them for their unwavering support. i would also like to introduce my brother alan mulally nation and his wife alessandra and my father robert mnuchin who has always supported me and taught me that hard work, determination, and the ability to bring people together can make anything possible. i would like to acknowledge my late mother, elaine turner cooper who was an inspiration to me. i would also like to acknowledge my grandparents, emmanuelle and matilda turner who were also a tremendous influence in my life. my grandfather was a first-generation american whose
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father immigrated from europe. he truly embodied the american dream. he started out blowing glass builds by hand and later midland glass into one of the largest manufacturing companies in the united states with five factories employing thousands of workers. my first job ever was in his factory when i was in high school. it was there that i first learned the importance of humility, hard work, and commitment. for those of you who don't know my background, i studied economics at yale university. at the age of 22 after graduating, i got a job at goldman sachs where i spent the next 17 years. i started on a folding chair in the mortgage department. nine years later, after many sleepless nights, i was put in charge of mortgages, u.s. government bonds, municipal securities. several years after that, i
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worked directly or future secretary of the treasury, hank paulson, as the firm's chief information officer. in that role, he oversaw 5000 people in a $1 billion budget. sachs, igoldman learned the importance of the financial markets in providing liquidity and capital to business, governments, and consumers. a few years later, i decided to leave goldman sachs to build an investment business. ateslorking briefly investments, i started my own business. throughout my career, my commitment was to mike clients and shareholders for whom i worked tirelessly to get the best results. 30 years later, my commitment is now to the american people for home i will work tirelessly by helping to grow our economy and create jobs.
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i am eager to share with you why i believe i will serve well as america's next secretary of the treasury. but first, i want to correct the record about my involvement with indymac bag. first nominated to serve as treasury secretary, i have been maligned of taking 'hardship in others order to earn a box. nothing could be further from the truth. during the summer of 2008, i saw the devastation that was caused to the housing crisis when i watched people line up to get their life savings out of indymac bank. it was the middle of the financial crisis and despite the global panic, i saw a way to save the bank. i applied for a banking charter and submitted a bid to the fdic for indymac. midnight,r 31, before
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we signed a binding agreement with the fdic. they later confirmed that our bid was almost $1 billion higher than the next best bid. we were willing to invest $1.6 billion into the most costly fdicfailure ever to the deposit fund. we did this because we believed in our ability to rebuild and create a successful regional tank. we believed in the rate coverage for the american economy. let me be clear -- my group had nothing to do with the creation of the risky loans in the indymac loan portfolios. when we bought the bank, we assumed these that loans which have been originated by previous management. some of those individuals had to answer to federal authorities for their bad lending decisions. billion into a6 failing financial institution
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when most investors were running for the hills. business one west bank and saved thousands of jobs. we developed a prospering community bank franchise in southern california as most tanks were pulling back. over the next two years, we bought two more struggling banks from the fdic. first fed of sent to la jolla competitivehrough bidding. we had him a 70 branches combined and built a robust lending business especially for small and medium-size businesses. tank, i metof the with hundreds of business people from all walks of life who were seeking loans to grow their business and prosper. like many banks at the time, indymac and its reverse mortgage freedom, wasancial unstable due to a large amount creditd -- of distressed
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mortgages in its portfolios. we bought indymac and these legacy loans were included in the purchase. the responsibility landed on me to clean up the mess. others made that we inherited. to helpd very hard homeowners remain in their homes through modifications wherever possible. ultimately, one west extended over 100,000 loan modification to delinquent borrowers to help them out of a bad situation. i am proud of the fact that loan modifications started at indy mac the leadership of the fdic. however, the fdic loan modification program did not work for everyone. when the fdic took over indymac, they estimated that more than half of the foreclosures would not meet their test for a loan modification. they demanded many policy toditions, extend assistance sympathetic borrowers was by
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establishing affordable and sustainable payments by borrowers, increase the net present value of cash flows to the owner of the loan, and stabilize housing markets. my group had to adhere to servicing agreements that limited our ability to make loan modifications that could have helped more borrowers. i ran aeen said that foreclosure machine. this is not an accurate this -- description of my role at one west bank. on the contrary, i was committed to loan modification intended to stop or closures. i ran a loan modification machine. when we could do loan modifications, we did them but , fanniees, the fdic mae, freddie mac, and bank trustees imposed strict rules governing the process of these loans. i am proud to be able to say that our bank was able to do over 100,000 loan modifications
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that allowed people the opportunity to stay in their homes. homesunately, not all the were able to be saved through these programs and despite my best efforts, some were sadly subject to foreclosure. so sincere was my concern over this that in 2010, i instructed of theers to sue hsb loanee to allows to do modifications that they oversaw. won on on some -- we summary judgment and were allowed to do more loan modifications and keep more americans in their homes. in 2015, when hud issued a hudgage e letter, i wrote and asked them to change the policy so we did not have to foreclose on senior citizens that were behind small amounts of money on taxes and insurance.
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troubled by this that i discussed it with their primary regulator, the office of the comptroller of the currency. unfortunately, hud did not agree in we were forced to foreclose on senior citizens even if they only owed one dollar. not complying with these hud policies would have subjected the bank to penalties and losses from hud. despite our inability to save every home from foreclosure, i proud of the fact that one west bank was the only one of 14 banks that was able to complete the independent foreclosure review that was conducted by the occ. 175,000e of the borrowers that were in the foreclosure process during 2009-2010, were able to have an independent review of their loans. .e had a low error rate
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independent government reviews showed we had the most independent loan modifications of any bank. if we had not but indymac tank, it likely would have been broken up and sold in jesus to private investors were the outcome for consumers could have been much bleak -- much more bleak. overall, i helped many homeowners stay in their homes and escape financial ruin through my management of one west bank. my experience confirms that we must identify and eliminate unwise and burdensome policies which contributed to the disastrous outcome that came in the wake of the financial collapse. many americans are still suffering from the disastrous ripple effects that the 2008 crisis had him our nation. faithfully ensuring this does not happen again means supporting careful oversight of
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a financial system which prioritizes the need of everyday americans over the wishes of financial institutions or the federal government. i felt great empathy for the millions of hard-working american families who lost their homes because the system failed them. if confirmed as treasury secretary, i will work diligently and compassionately for the american people so that we never see anything like the meltdown of 2008 ever again. i was deeply honored when donald trump me to join his campaign as finance chairman. i had the opportunity to travel fromhim and hear firsthand hard-working americans about their concerns for the american economy. over the last year, i visited over 50 cities in 26 states.
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i remember attending my first rally with him in indianapolis. it was an unforgettable experience. stadiumrived to the packed with 20,000 people, i saw the excitement people had three donald trump presidency. flint, michigan, i went with the president-elect to visit the water treatment facilities and saw firsthand the crumbling pipes and the devastation caused by that lead tainted water. we met with water engineers and saw the impact it had on that community and the families that lived there. across the country on my travels with the president-elect, we heard the pain and heartbreaking stories of americans who had lost their jobs to workers in foreign countries. we heard the concerns of people in small business burdened by high taxes, just trying to make ends meet. in my meetings with you over the last month, you have share the concerns of your constituents
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like farmers who worry about the death tax wiping out the family farms were workers who are nervous about whether their retirement accounts will be safe from ruin. greatest reasons i was drawn to president-elect trump's campaign was that it was predicated on a commitment to stimulating prosperity for americans of all backgrounds whether they lived in the inner city of detroit, rural north carolina, the coal country ever ohio or west virginia or any place in between. i share the goal of economically empowering every citizen. we will not rest in our mission until that is a reality. among president-elect's signature issues in this campaign was reviving trade policies that put the american worker first. i will enforce trade policies to cheap our currency strong on the world exchanges and create and protect american jobs.
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theill also make america best place for companies to do business. 's sensible regulation is a necessity for healthy markets. i saw firsthand how regulatory excess can inhibit lending by financial institutions resulting in a lack of access to capital for small businesses and entrepreneurs. alexander hamilton remarked that the wealth of a nation may be by multiplying the objects of enterprise. hamilton knew the unique value of entrepreneurial activity to a thriving economy. from our nation's earliest days, american business has been the greatest repository of ingenuity and entrepreneurial spirit in the world. we need to unleash that power to generate jobs and create an abundance of four americans of all backgrounds. getill lurk diligently to
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rid of regulations and lower taxes and hard-working americans and small business and get the engine of economic growth firing and also did -- cylinders again. in this age of unprecedented online attacks, we must also be vigilant about cyber security. if confirmed as secretary of the treasury, i will use my expertise in technology to protect americans information at the irs and keep our financial architecture safe from malicious attacks. i will use the treasury department's office of terrorism and financial is -- intelligence to stop the financing of terrorism. i will partner with other government agencies it in our shared goal of allowing our financial markets to operate free from digital and physical threats. if i am confirmed as treasury secretary, i promise i will work , allwith this committee
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members of congress, and the administration to put forth policies that will help american families reach and maintain prosperity. we will make america great again. thank you and i look forward to answering your questions. >> thank you, we appreciate your comments. i have some all blogger terry ask all nominees. obligatoryome questions. is there anything that would indicate a conflict of interest. >> i have signed with the ethics office to sign off any holdings that would conflict. >> do you know of anything that would prevent you from fully discharging the responsibilities of the office to which you expect to be nominated? >> i do not. to respond toe any reasonable summons to appear a dulytify before
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constituted committee of the congress if you are confirmed? >> absolutely, i look forward to it. >> do you commit to provide a's -- a prompt response in writing from any senator in this committee. >> i provided over 5000 pages to the staff. if there is additional questions, i will respond to them promptly. >> i have to go outside for a minute so instead of my starting the questions, let me turn to the ranking member, my partner in this matter and i will ask questions when i come back. . financenuchin, medicare is about taxes. it would be your responsibility with the attempt to repeal the affordable care act, medicare solvency is threatened. , in yours are needed
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view, to strengthen this program that every senior in america relies on? senator, thank, you very much. i appreciate the opportunity for us to meet yesterday and especially the opportunity to talk about tax reform with you which i think is important. i completely agree with you that medicare is very important and an important program and the safety of that is an important issue. if confirmed, that is something i look forward to working with your staff on to make sure we have the appropriate policies. >> if you are confirmed, mr. mnuchin, you would be the you are confirmed, you would be the managing trustee for medicare. wouldn't you like to offer something by way of discussion about what you would be doing is confirmed? this is an important part of the job.
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steven mnuchin: acknowledgment is an important part of the job. and there are many important parts of this job that i consider myself an expert on and there are certain parts of this job that, if confirmed, i will work diligently with this committee and others and there is obviously a significant staff. this is an important issue and as i've said, i am committed to be responsible in my position there. and make sure that i properly provide the support from the treasury department. and i would take my responsibility very seriously. tell you, without any specifics on a matter that is so important that you have direct responsibility over, i find it troubling that you won't discuss medicare. so let's go to terrorism finance. fighting isis and other terrorist groups. the treasury department plays a key role in fighting this battle. what would be your ideas on additional actions in


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