tv Key Capitol Hill Hearings CSPAN June 18, 2015 12:00am-2:01am EDT
understand. if you do no i would be happy to report. >> as we have discussed many times this issue is an important one. we are concerned about the problems. we're working on implementation of the -- of the legislation and am happy to get back with you. more broadly working this issue how to deal with remittances. we are involved with the world bank to develop solutions to the problem which means building up capacity. right now there is not a real financial system to engage with. we have had meetings at a senior level of the political level the central bank level.
they can improve the system. could you talk a little bit about the work you doing on the technical assistance area? what sort of message would you like them to receive in order to develop that banking system that i think there going to need? >> there is not an easy answer to that question. it's hard to exaggerate how little they are starting with in terms of building a functioning financial system. you know, the tragedy is that there are legitimate transactions that should be able to move forward, but it is hard to know the money is not going to go in the hands that would do real harm's. trying to figure out how to build a system is why we are working with the world bank. the security conditions. we have people come out of somalia and other countries for training. is not the most efficient way. great when they can go
in and work with people side-by-side. we're trying to do it off site to help them build the skills. it it is a process. it is not something that you can just hand over and have a functioning system. they are trying. we will work with them and we have to be creative to find a way to start that. >> i just want to urge you on behalf of the people who live in the congressional district of minnesota and other parts of the country we are going to start our somali caucus because we have constituents who live in both districts. we want to see them see that country is stable and strong and not be a haven are an attractive nuisance from that people. we try to do our part. we hope you will continue to push with that technical assistance. >> we will do so and continue to work with you to find a solution. >> the time of the dillman has expired.
the chernow recognizes the german from tennessee. >> thank you mr. chairman. i'm going to go back to a shoe issue you and i talked about the liquidity. recent comments he recently warned regulatory authorities made a mistake when they looked at each institution and said he will be safer if you withdraw from the markets and then forgot that if all institutions with job for the markets a bit they will be less liquid. that will hurt all the institutions. should be in the making sure we have liquidity. what is your reaction to his comments?
>> i want said in response to several questions, the liquidity issue requires are issue -- attention. the economic cycle of the volatility that is natural at that.to the emergence of new market mechanisms that are different and present different risks to the volume corporate bond issuance. i have also said that we -- we have an eye on whether or not they are regulatory issue. it's one of the things we need to look at. i'm not approaching this from the.of view that we no exactly what it is. i don't think anyone knows exactly what the answer is. >> a possibility that it could be. >> the fact is that i describe i no are at work.
the question is much more speculative. people jump prematurely to a conclusion about regulation which would take our eye off of whether there are risks. >> would you say we need more regulation? >> we have come a long way. safer and sounder. we have the ability for institutions to withstand a bump in the role that the did not half. that does not mean we should stop. >> more is needed? >> i did not say more or less. you can't take 50 years between 50 years between looking at these questions. we need to keep our eye on the future and we must be open to the possibility that there are multiple different factors at the core of an issue. something like liquidity of fundamental importance that we have a deep and liquid market. corporate markets my wrist markets, they are not all the same. liquidity issues are not the same. >> let me follow up. echoed by everyone.
i will catch them. the commissioners and many overseas regulators at the bank of england. we talked about you issuing a data-driven analysis. coming out. >> this summer and we will share it when it is complete >> it seems likely -- every time we have a hearing we talked about the problems we face. face. more regulation. i will differ with you. it sounds like that you are inclined to be for more. >> for less. >> there you go. >> more or less. what seems to be happening is the more liquid that is tied up in the markets, is not the bigger institutions the pay the price.
it's the guys it's the guys back in states like tennessee and arkansas that end up paying the folks at the bottom command we need to make sure when something does happen is enough liquidity available. thank you and i yield back. >> the german from colorado. >> thank you. seeing cool under the withering cross examiner it -- cross-examination. i have a different view than the chairman mr. duffy as to what is going on in the economy. might as well start with all the records being said by dow jones up from 6500 from 6500 at the end of george bush to 18,000. s&p. the nasdaq three times what it was. foreclosures are down. a tremendous improvement across all sectors.
so when they are talking about calling the market and you are causing them to royal i want to thank you for rebuilding the markets. from the recession that we were in at the end of george bush, and i don't know if you have your report in front of you but there are very important graphs that i would like you to take a look at if you have your report in front of you. so let's take a look. easy ones starting with 4.1.4. that is just under the obama administration we see oil imports drop in oil production increase but we have not seen in decades. it's how about 4.1.6 billion unemployment rate dropping like a rock. this is on page --
>> what it. >> twenty of report. after the 2,072,008 recession. but now let's talk about caps on. if you would turn forward to page 62 and 63 someone to look at graphs 5.3.16 and 5.3.19. well, can you 16 and 5.3.19. well can you tell us what graph 5.3.16 is? >> i have read i have read the words and i'm looking at some of these graphs. >> let me tell you what it is and then you can expand on it if you like. as the recession took place starting in 2008, 2007 2008 we saw loan-loss reserves fall. banks could not withstand more and more losses. since the creation in 2010 what do you see? they have almost tripled. >> performing loans doing better than seeing a
foreclosure issues settled down. >> let's look at the one that is really quite telling 5.3 .19. fdic insured failed institutions. my friend institutions. my friend the chairman was talking about this recovery and why isn't it bigger other than the fact we have 13 million new jobs. pensions at all-time highs. but under republican administrations -- and between 1980 and 1990 we had the reagan administration and the 1st george bush administration look at the number of failed institutions. then it falls off to virtually zero. no bank failures. then under the 2nd george bush we see a tremendous spike.
so now it is falling off precipitously. here to talk about the f soccer and dodd frank and putting some structure back in the market so that we don't have a failed banking system. would you like to comment? >> you talked about the improvement in the economy. the graph illustrated. so does the number of people working every day. i think that the -- there is no doubt that the steps we have taken through wall street reform have made our system safer and we have the economic recovery underway which is why everything is getting better. better. but i don't think we can do is rest comfortably that there is no problem out there to worry about. what will what we will happen is we will get to the down.of a business cycle. we owe it to the american people to make sure we are in a position times get tough that we don't go back.
that's exactly what we're doing. >> i doing. >> i completely agree command that's why you need the loan-loss reserve so you can withstand the downturn. we take in the consideration of precautions. if i were my republican friends or would be grasping at this liquidity strong. i want to thank you and the president for putting this economy back on track. >> the time of the gentleman has expired. >> thank you mr. chairman. a pleasure to have you here again. i want to talk about the ultimate goal. reduce risk in the market. >> make sure we have financial stability on my mind. >> financial stability can be accomplished to the elimination of risk. >> focus on instability.
>> and let's talk about stability. we need to make sure our institutions have a proper roadmap. right now we have a designation of the city that leads to an institution trying to find out how they get out. i give you credit for what happened in february and an opportunity to try to get a decertification. my concern is why don't we have in place a roadmap from a roadmap to a precautionary measure to prevent them from being designated as city. >> you know the process is not one where we assume everyone could be. to go through to go through the funds that present themselves because of their size complexity command structure. >> are we not focusing on more of a treatment for the chore instead of the prevention? >> the reality is no two firms present themselves an identical place.
the way we go through the analysis looks at each farm. >> and the proactive way to mother being looked at. we would not have to have the designation. >> let me move into something more quickly. asset managers are pretty important and i have concerns about them being declared. for example in dodd frank some of the criteria to include our leverage, the extent and nature of the off-balance-sheet exposure to the degree of reliance on short-term funding. what is a what is a leverage ratio you would consider to be worrisome? >> i don't want to give you a single number. >> the smaller the better. five to one may even be a little bit of a concern. >> it depends on the investment.
>> a combination. >> asset managers won't have a greater than one after one risk. then god has 1.04 to one which is almost miniscule. that should be a consideration that would prevent them from being considered. >> it certainly a factor you would have to consider. we have made our focus looking at the activities that contain the most risk. >> they don't the activities that contain the most risk. >> they don't contain risk. they don't even have any collateral. >> asset managers have different business models. >> the leverage is miniscule. you become reliable. if one fails and they bear the brunt. >> i'm not sure what you mean. >> they will bail out.
>> i'm not sure what you are referring to. >> let me move on to the impact. if an asset manager were to be deemed. you realize this and cost compliance but asset managers deal in mutual funds, 4 o 1 kays, investment. american action forum capitol requirements necessary to raise the cost is much as 25 percent. over the life of that program over hundred thousand dollars. taken into consideration? >> obviously they have an interest in making sure they have access to their savings when they need them. >> a significant impact.
>> i don't set out with the presumption that they should or should not be designated. complete the analysis and come to a conclusion of what risk factors we're looking at. >> i agree. permitted measures in conjunction so that they can prevent that risk of being taken and ultimately continue. >> my sense is the asset management industry is offering its view as we go through the process. >> very strongly. my time is up and i yield back. >> the chair now recognizes the german from maryland. >> thank you for being here. i want to associate myself with the comments that were just made. i thought i i thought i heard my colleague asking you about the prioritization of my debt. i want to make a comment. it seems to me that is a misguided idea.
the best credits in the world never prioritize debt. berkshire hathaway exxon mobil, terrific credits they, they are treated the same with great flexibility as a result. forced by the market to prioritize debt so that people no exactly what they have and when they get it. it strikes me as a misguided idea to force the government into a position where was signaling to the world that we are weak credit. >> i cannot agree more. the technical question i could you pay principal and interest is the. if you pick and choose you will default on something. >> and present very differently. >> if you reach the conclusion that you had to because it would be disastrous not too is to is a terrible place to be
>> october 15 the fact of any kind of regulatory environment. >> the people running these environments. >> sometimes perception becomes reality. >> i have heard i have heard them say that voelker is the reason. >> treasuries. >> in treasuries you have to question that something in the leverage rules. >> it used to be no matter how many treasuries you had.
now you kind of do. >> i think that it is important for us to maintain the deep treasury market has something that is part of what makes our dollars part of the world reserve currency. i do not see a weakness but i can assure you, a day does not go by where i don't ask questions. >> xm bank. i talked about ideas were institutions are required to sell off portfolio so that there is better transparency do you support do you support that approach? >> am not familiar. i be happy to look at it. the bank does enormously important work. >> and i agree with the position. additional transparency. >> i be happy to look at it. >> the time for the
gentleman has expired. the chair wishes to alert members to accommodate the secretary schedule. we we anticipate clearing three more members of the cube presently. mr. stivers, passenger, and bar depending upon whether or not someone else walks in the german from ohio is now recognized. >> thank you. >> i'm well. >> you already answered questions for mr. duffy and mr. ross and mr. fincher. i want to ask a couple things. you don't think there is a problem. the world is rainbows and unicorns and everything is good. >> i think that's i think that's what i said. >> he said there was no problem liquidity. >> asset i think i think we have not seen problems in the treasury market. there are issues about liquidity that require attention and i went through and some length the kind of issues we need to pay attention to.
>> great. let's talk about that. you believe we need to give it attention. as your role have you director the office of financial research study this problem and how the policies that are completed and proposed might come together because a problem more have you ask them anything about? salus would love to see them do a study. i'm curious if you ask them to do study. >> they are doing work in this area. they have issued other work that is ongoing. it is a question we have to ask for domestic finance, security. i think there's a serious conversation in this area. i have tried to make clear
what the relationship between the safer sound the world. we must be open but not assume. >> i do not disagree. that's why i asked if you would have been do study. when can we expect to see a study? >> i would have to get back to you. >> please do. that is the job. it is called the office of financial research. they are the most logical place. >> they have done a lot of analysis to understand what happened on the day. they are very much in the space of helping to make it possible to look between the data. >> which is their job. i'm just asking to have them do their job. as policymakers who would
love to see the. it may impact the policies we decided make. as someone who enforces those policies obviously you have some ability to change the way you do your job. he love to see that information. the sooner the sooner we can see it the sooner we can make an informed decision as opposed to either one of us. let's. let's look. >> i cannot agree more. >> please ask them to do study those details. i think when you see what's going on separately from regulation were a lot of people are simplifying the business model of those
three things come together in a way that can really cause a liquidity crisis in the future, and i just want to make sure that we look toward it and try to anticipated. the other question with regard to designated systemically important institutions as anyone talk to you about that? >> a number of questions earlier. >> do you think the $50 billion -- let's talk about banks were 2nd many folks have said that is inadequate an artificial. >> we have to create institutions of different sizes differently and after i do need to continue to ask if it's being done as well as we can.
so i think some of the suggestions i have heard about drawing the lines are bad policy. the heightened supervision. >> let me suggest an alternative's. have you looked at non-bank assets assets that are not under the coverage institution? that is where the systemic risk is created. >> the chair now recognizes the gentleman from north carolina. >> there has been discussion, a considerable amount regarding the debt. you seem to be somewhat dismissive of this concern.
>> i spent most of my life trying to control spending been working to cover expenses. >> do you see it as a level of concern? national security and economic security. >> if we played on the course with iran and 2,008 -- >> sir, listen to the question i'm asking. how do you how do you view the threat? important to my concern that we have? and economic threat? do you sense that? >> obviously there are different. >> there are. >> we have made more progress. >> i understand. he heard the statement earlier. you hear it still today. still talking about the
directors been. he made the statement publicly this last fall regarding the spending levels in the debt. a lot of people get clear focus on the debt and see it as a major priority and concern. you see the same level of concern. does that keep you awake? >> we have made enormous progress. >> that is not my question. >> if you had asked me this question that given you a different answer. >> am asking you today. >> i don't think it is a
pressing concern today. >> 18 trillion is not a concern. >> as a percentage of gdp we are stabilize the deficit. >> the spending is going up not leveling off. >> we had a stable a stable debt and deficit situation. [inaudible conversations] [inaudible conversations] >> october 2014. the deficit is projected to return. return. a lot of small people disagree with you. [inaudible conversations]
>> thank you for your patients. we talked a lot today about market liquidity. the center for financial stability is found the market liquidity has declined 46 percent. a recent article in the "wall street journal" provides this analysis. talk to any banker or investor and on topic is likely to dominate the conversation. government bond markets without moving prices the
regulations played a part in this liquidity issue. have you heard from bankers? less likely today to engage in market-making activities as a result. >> supported by facts and some of which are not. >> do you -- >> am not doubting anyone sincerity. sometimes it's right and sometimes it's wrong. what you just cited, people are having trouble moving blocks of bonds without movement.
that has something to do with market structure. structure. there are different players that maintain liquidity and do multiple transactions. >> i don't understand the difference. >> i understand, acknowledge that when banks become reluctant that impacts liquidity. >> there are different kinds of market-making. market-making. there's a lot of market-making command you cannot roll back the clock. the fact that you have the emergence of electronic trading and our high-frequency trading there's a lot of activity taking place no space that is not the traditional broker-dealer model. >> this is the collateralized loan obligations marketplace. 350 billion that provides financing for dynamic job producing companies which are in my district. acknowledge that the laws
forced banks to take pretty significant losses and triple and aa paper. >> obviously it still taking effect. being forced to divest. >> banks are going to have to not have proprietary investments that they have in the past. >> do you know how many triple or aa charges of notes defaulted? the answer is zero. you are forcing banks to divest and safe investments. you you have to acknowledge that has a destabilizing impact on the financial stability of institutions. >> you also have to
acknowledge the exposure to risk and proprietary investment -- >> what risk? notes that have never defaulted and have been well >> the objective is to reduce the level of risk exposure by getting them out of proprietary investment. they would be better off in the markets will adapt. >> you do not dispute the fact that they force banks to divest aaa paper that has not defaulted in 20 years. >> with the exception of treasuries, it's a pretty table. >> let me conclude. community banks of the bankers to the bankers tell me .-dot frank is an avalanche and has impacted the bottom line. the numbers bear this out. chart from 776,300. meanwhile there is consolidation. big banks a larger.
too big to fail is a bigger problem now because we do not have diversity or as much competition. response to that financial stability issue. >> the consolidation was going on before wall street reform was enacted. i'm not sure it's leading. mostly smaller banks. and it is an issue that we have shared interest in making sure communities have access. >> i encourage you look at consolidation. the exacerbating. >> they will not be recognized today. i would like to thank the sec. for his testimony. all members have five legislative days within which to submit additional legislative questions.
while the united states is open to supporting? we must see a greater commitment from all parts. there are positive there are positive signs. i met with prime minister, iraqi kurdistan regional president and just last week with the speaker. they all fully understand the need to empower more localized multi-sectarian multi- sectarian iraqi security forces and address persistent organization and leadership failures. because a sovereign multi- sectarian in iraq is more likely to ensure lasting defeat of isis the united states must continue working with. efforts must reinforce inclusivity and multi- sectarianism, not fuel a reversal which would make a lasting defeat harder.
the situation in syria is even more complex because of a lack of illegitimate government partner in many competing forces. regardless we will continue to strike with the long reach of airstrikes and operators in the continue working with syria's neighbors to impede the flow of foreign fighters into and out of syria and iraq. the train and equip mission has been challenging but the requirement also means we must persist. in conclusion in conclusion i believe that success in this campaign can and must be assured. it will take time and require consistent effort on everyone's part. the entire us government, our entire international coalition and most importantly the iraqi
and syrian people. together and with your support including your support for america's troops and their families for which i am they are ever grateful for we will achieve the lasting defeat of isis that the quorum call be vitiated. the presiding officer: without objection. mr. menendez: mr. president i come to the floor again to speak about iran. as we count down to the deadline for an agreement about iran's illusiveness when it comes to the military dimensions of their program and how they will respond to that in any agreement. and the truth as it has always been is illusive and it remains so. yesterday secretary of state
kerry said in response to a question about whether or not iran's atomic work by the military by the iranian military would have to be resolved before sanctions would be lifted, the secretary said that we're not fixated on iran specifically accounting for what they did at one point or another. what we're concerned about is going forward. well mr. president given iran's history of deception, i am very concerned about what they did at one point or another. in an iran task force memo on verification it says that -- quote -- "until iran provides a full accounting of its past and present possible military dimension activities, the international community cannot have confidence that it knows either how far iran is along the path to nuclear weapons or that
iran's nuclear weapons activities have effectively ceased." david albright, who i've called many times when i was a chairman and still has come before the senate foreign relations committee, the founder of the institute for science and international security, said the secretary's remarks were -- quote -- "very worrisome. he said they reflect the administration's long-standing practice of offering concessions to iran. and he said -- and i quote -- " whenever confronted with iranian intransigence they fold. it's going to be hard for a lot of people to support this deal if they give in on past military dimensions." he has always said addressing the international atomic energy administration's concerns about the military dimensions of iran's nuclear programs is
fundamental fundamental to any long-term agreement. an agreement that side steps the military issues would risk being unverifiable. moreover the world would not be so concerned if iran had never conducted weaponization activities aimed at building a nuclear weapon. the former deputy director general of the international atomic energy administration has said -- quote -- "without addressing those questions speaking of the possible military dimensions of iran's program, the iaea secretary will not be able to come to a conclusion that all nuclear material in iran is for peaceful use, which is essential in building confidence of the international community over iran's nuclear program. a comprehensive deal that would include uranium enrichment can only be reached if uncertainties
over iran's military capability are addressed. that should be an unambiguous condition to achieving a final accord that is meaningful in safeguard terms. now, this is the former deputy general of the international atomic energy administration who overwhelmingly under the proposed agreements saying this is the entity that will be responsible for the verification of any potential agreement. well his experience says that without understanding the weaponization elements of iran's program, you can't fully be able to do that. he also warned that outsiders really can have no idea where and how fast the mullahs could build a nuclear weapon unless they know what iranian engineers have done in the past. and as to secretary kerry's assertion yesterday that we know what their program was and he
said it, as i read it, almost as unequivocal, we know what their program was. well i get concerned when i read the former director of the c.i.a. general michael maden who has said -- quote -- "not addressing the possible military dimensions creates an increased burden on verification. if i don't have high confidence in where the iranians actually are, not such as emphasis i'll material -- fissile development program as in the program. we do have intelligence estimates but they remain estimates. they remain estimates. for a country that says that is not our objective they refuse to come clean on their pasts. how can we know their intent, how can we we know their capacity for breakout or sneakout with high confidence with where it is -- without knowing where it is they are right now?
he also said with reference to secretary kerry's remarks i'd like to see the d.n.i. or any intelligence office repeat that for me. they won't. what he is saying is that we don't care how far they've gotten with weaponization. we're betting the farm on our ability to limit the production of fissile material. he's pretending we have perfect knowledge about smog that was an incredibly tough intelligence target when i was director and i see nothing that has made it any easier. this is the former director of the c.i.a., supposedly where we have all this knowledge. this is his expression of what we have or don't have. and clearly basically what he's saying is we have estimates but they are just that, estimates. so mr. president i'm concerned, very concerned when the secretary of state says we are prepared to ease sanctions on iran without fully understanding how far iran
progressed on its secret nuclear weapons program. it has been a fundamental question from the very beginning of these negotiations, it was made very clear in testimony before the senate foreign relations committee and other venues where members asked about would iran have to come clean on its possible dimensions of its militarization of its weapons program, and would that have to be up front. and that was always an understanding, almost like a red line. now, that seems to be erased. it has been a fundamental question to which we need, not just want, a full and verifiable answer. and this is not just about iran making some admission. that's beyond us. i think the world pretty much has acted the way it has acted in the sanctions of the security council and elsewhere because it
knows that iran was pursuing weaponization of its nuclear program. it's just that we don't know how far they got in that process and how far they got of that process is important to know as you are determining the other elements of any agreement particularly with breakout. and that has been the case as long as i have been working to prevent iran from becoming a nuclear weapons state. now the secretary of state says that we are prepared to ease economic sanctions without a full and comprehensive answer to that question. he says that iran's past suspected nuclear activities need to be addressed. that's all simply addressed not specifically answered, but only addressed. now, according to the "new york times" article that i read, he made it clear that sanctions could be lifted, they could be lifted before definitively
resolving concerns about the international atomic energy agency about iran's past nuclear research and the extent of the military dimensions of that research. that mr. president is simply unacceptable. in my view, and it should be unacceptable to everyone in this chamber. you know, "the new york times" article goes on to say and i quote -- "those favoring full disclosure of what diplomats have delicately called the possible military dimensions of iran's nuclear research say that the west will never know exactly how long it would take iran to manufacture a weapon if it ever developed or obtained bomb-grade uranium or plutonium unless there is a full picture of its success and suspected experiments to design the detonation systems for a weapon and learn how to shrink it to fit atop a missile." that's exactly what i believe mr. president, and i came to the
floor and had a map that described where the possible reach of iran's present missile technology exists, and it's most of the gulf into parts of eastern europe, turkey, egypt and of course our ally, the state of israel. so it's reached today under missile capacity, and something that they continue to perfect is incredibly significant. for a decade since obtaining data from an iran scientist on a laptop that was spirited out of the country the c.i.a. and israel have given enormous energy to understanding the scope of the program. failing to require disclosure would also undercut the atomic agency a quiet signal to other countries that they, too, could be given a path. that's further from the "times" article. well those are exactly my continuing concerns, and i think
they are concerns of a very large universe who have been following theeg developments. i need to know the answer to those questions before i can support any lifting of sanctions against iran that i have fought for, authored and that the senate has unanimously supported. so mr. president, i am going to conclude but i will be back to point out the unfolding problems dealing with the mullahs in tehran what it means to the national security of the united states and to our allies in the middle east and to the stability of the region and to what i am increasingly concerned is the moving of goal posts that move increasingly in the direction of iran. i remember when we started off this conversation, these negotiations iraq, the plutonium reactor.
we were told they will dismantle it or we will destroy it. well this agreement allows iraq to continue, reconfigured somewhat but it can be reconfigured back. the president himself has said that there was no need for fordo. deeply built under a mountain facility. if you want a peaceful nuclear facility program you don't go deeply into a mountain to ultimately do enrichment, but that's what the iranians did. the president himself said that was an unnecessary facility. we were told it was going to be closed. well it's going to stay open. reconfigured to produce less uranium and supposedly with safeguards but it's going to stay open. the point is the weaponization elements, that was -- iran has for a decade, a decade worked against the u.n. security council resolutions that said it had to come clean on this question and so if for a decade they haven't done it, when you
have the leverage, why wouldn't you seek to achieve it now so you know and can calculate the rest of your agreement? that too seems to be being lost in the shifting sands of these negotiations. this is of deep concern to me, and i can only hope that we will end up at a better deal than that which is being unfolded as we speak. every time i listen to ano >> >> that element seems to be moving in that direction not but we should want to save. that is my concern mr. president with that i observed the absence of a quorum.
island to inform the body i had a very good conversation a few minutes ago that you may have then following the news that with secretary kerry the possible dimensions of the iranian nuclear program with in terms of reconciling some of the words of what they may have required. and he indicated to me those dimensions end of the program it is very much on the table here is what the secretary carey said. as part of the agreement may have to do it and it will be done so secretary kerry
they're firms that statement i want the body to understand it will baa nightmare. i aea has not had access to a the dimensions of the program to exploit -- expect ti a expose of ted nation as part of their ambition and. there are three things that they want to look at before they pass judgment before going down the military road. la date full lead to not answer those military dimensions. endued oddball where they are going forward you cannot have a meaningful inspection regime with the military
dimension so i do know that they cannot be trusted to have lied and cheated every turn there is no wiggle room. anytime there are inspections understand is the essential 83 -- ingredient slaving glad to have received a full kolkhoz from secretary kerry to get every i dotted before we even attain a deal with terry and. >> will yield a? to read counselee's the mechanism might understanding from the statement that secretary jerry now says that was not an accurate quotation of his? that it was not urgent? that those previous activities would be
absolutely required? >> he said that was taken out of context and reaffirmed that the military dimensions are the essential part biddy is issuing a statement. this is important for the body to understand i hope we can get a deal but at the end of the day remember who reared duke -- dealing with they lied and cheated with the dimensions of the program to every detail. >> to the senator from south carolina have an opportunity to ask secretary kerry about the latest information concerning the iranians providing weapons to the taliban?
warhead with the vehicle of which to deliver it. did the senator ask the secretary of state about those events in the middle east today? >> no i did not i will talk specifically understand the concern to give them money to five day very destructive for machine. until they fled the administration with cash what they're doing to gauge using whatever resources they have. i doubt if any additional funds with that activity they just described but but
here today as to read a lynching is officially sworn in as our 83rd attorney general. to the men and women of the justice department and members of the executive branches and leaders from law-enforcement and civil-rights organizations. your collective presence is a tribute to the admiration and respect that the friends and family members traveling here all over the country. you can sit down now if you would like. [laughter] it will be held long program review were standing the entire time.
to france every members from all over the country here in the greater washington d.c. area we want to welcome the an immediate family. her husband and children her parents and we want to thank them to be here for this special occasion. [applause] loss today is a formal swearing and. already beginning to build a legacy whether dealing with the events of baltimore literally hours after arriving at the department of justice or announcing charges in an international corruption scandal that has garnered attention rolled wide purview establishing
herself that will lead with determination and. i first got to know the attorney general when we served shot of the advisor read committee and even though she was in brooklyn and i was in atlanta of the shared a background of prosecutors that cared deeply about the department of justice for cry was struck by her steadfast result and unfailing gracious this also those values that i witnessed her integrity sense of duty and commitment to do things the right way. these traits in stilled by the family as a career prosecutor reflect the very desperate she is in
responsibilities that a great moment in history. the department of justice has flourished under the leadership and the aunt who fought tirelessly for the cause of justice and never shrank from holding the department of from its ideals. [applause] so while we are stronger than ever we will face challenges in the months to come by and positive whenever the task whether national security or civil rights or public safety or cybercrime the to read in the community set reserve i am confident we have the right woman for the job. [applause]
in 2010 the u.s. attorney's office in the eastern district of new york developed a partnership with bedford academy high school that is a public school in brooklyn where more than 90 percent of the students graduate and go on to college. 27 students have participated in the u.s. attorney's office pre-lot
[applause] let us pray. almighty god whose presence has solemn assembly to be cq to make herself felt at this time in displays for our desire to offer thanksgiving for the of blessings of life that has brought us to this hallowed moment. consecrate these proceedings so that we will be moved by the power of your goodness to a knowledge the guidance of your wisdom and the work of your hand with the appointment of the honorable will read of elizabeth lynch as the 83rd attorney general of the united states. cover her with grace and continue with favor so they will see the discharge of
her judy's committed to the rule of law that by subjecting herself to go lot of love with a fear of injustice. to insure equal protection of the law and there is equal opportunities for all for the full list of their humanity but the timeless truth to put in a nation under god to commit in dedicating itself to justice to prevail.
>> especially commander to your safe keeping all elected officials all this is is this of the united states to your mercy enjoy a. a man. >> thank you. you may be seated. joining as is the morgan state university choir. require that hails from the great historical black college from the east river at the warehouse and then to be billed -- took the have
i was telling her backstage pompous circumstance never hurts. justice sotomayor is your. [cheers and applause] want to congratulate the attorney general on her confirmation there she is. and the one to say the key to those who are here today the family and friends colleagues but long-lasting items so proud to be here for the installation of our 83rd attorney general of the united states, loretta lynch. [cheers and applause] we want to welcome and her family her husband.
[applause] her father. [applause] they accuse so much for your appearance when i nominated loretta lynch a country built on the rule of law few perhaps new that as attorney general the american people tasked with enforcing federal laws to make sure in force evenly and equally that is the legacy of eric holder and you come before his outstanding service.
[applause] as one of the longest serving attorney-general is. [applause] eric was driven by the fundamental belief a very real and tangible way from people in their daily life. and we will share that belief. she shares her own unique style with though wealth of experience to the justice department at a time when there's so much work to be done to keep us safe from terrorist attacks to safeguard our environment to uphold the civil-rights. all of you that the justice department can do incredible
work day in and day out we could not ask for a more incredible leader. board in segregated north carolina raced by a fourth generation baptist minister and a school librarian. neither seemed to mind speaking their mind. [laughter] that was my quick impression [laughter] more importantly taught loretta lynch the value of speaking up what is right for ago she would go to the courthouse with her father and they would tell stories but had no recourse under jim crow. he did this with the only
the third grade education no matter the circumstances have the power to make a difference in the lives of others it is clear both had a huge influence on the right as her biggest cheerleaders for going she applied and an fbi agent went to their house the parents pulled out some scrapbooks. [laughter] and made the agents look through them. [laughter] i am sure she was modified. -- mortified. [laughter] i can picture the agents sitting there. there probably said she was not a threat because if she
were the parents would have documented it in some way. [laughter] i can appreciate that as of father. so those opportunities with harvard college and law school as a strong and independent prosecutor who spent years in the trenches fighting cybercrime with the eastern district of new york fed chief assistant u.s. attorney. long island in the house. she chase public corruption to tourbillions says settlements jailed the
notorious gay members and mobsters and pursue the most dangerous terrorist and cybercriminals. she is tough but she is fair and for and kind her grace under fire with the trust and admiration of those she works with him those that she serves our goes up against. we are installing her today. she hit the ground warning non dash running the number one because of for laser focus of the core mission for about shoe understands the importance to our improved relationships between law-enforcement and went on a 662 were.
she a understands the importance of criminal-justice and we have to be smart that is why she is committed to working as a partner as leaders of both parties to continue the trend of a falling crime rates of incarceration and. to protect national security with civil liberties and safeguard the program to protect american lives and america as privacy and i know he is committed to doing the same thing. she lives out the words of robert f. kennedy the gloria of justice created not just by the constitution or the
offices of the law but by the men and women while protectors of though lot as they themselves are protected that has always been the story of our nation the strength is not come or from what we've put down on the books but ordinary citizens who do there part to uphold. it comes from the unshakable faith to which mitt where we have fallen short then choose a better way for word pro the calls to which she dedicated her life but today the american people could have no greater right no greater partner and our
>> please place your left hand on the bible says the great honor to uphold. >> i loretta lynch do solemnly swear, then i will support and defend the constitution of the united states against all enemies foreign and domestic and that i will bear true faith and allegiance to the same. i take this obligation freely without any mental reservation or purpose of evasion and.
[cheers and applause] so much to say so many people that mean so much to me everybody here been something special to me. mr. president thank you so much for your words and presence here today. to save my heart is full is such an understatement but one does not get to this place for this department or podium alone and i am no different i owe thanks to so many that i can acknowledged here today. mr. president thank you for your face and asking me to leave the department that is the conscience of the nation to represent more than any
other the fundamental promise of america of equal justice under though lot. thank you. [applause] justice sotomayor thanks for your support here today and over the years. you are an inspiration to countless young women who see and hear a dream and made possible. thank you so much. [applause] also to my good friend and colleague who is an exemplary colleague and a true friend since our days to gather it is an honor to lead this department. thank you and thanks to all of you who came here today
distinguished guest an extraordinary leaders and remarkable friends. your strength and kindness have paved the way from what i have been able to achieve. and also this stage really could not have happened from so many affiliations have worked so hard on behalf to the road of my a confirmation the spirit of civic kong - - as well as the spirit of sisterhood. [cheers and applause] from the bottom of my heart not just for your presence here today but in my life in on this journey. of course, also my family for their steadfast support
not only over the last several months but always. my father, never failed to match the principles of action taught me to think for myself. my mother, to instill the love of learning that made we imagine a world without limits. a minister who carried me on his shoulders to watch those make history and a courageous teacher refuses to let jim crow or anyone define her. for justice and public service and inspiration it is why i dedicate this day and this event and chief mitt to them. [applause]
i'm is also thank my husband , my life partner and fear this champion who have never wavered support and faced with a choice always always urged me to fly. of course, my colleagues and my friends at the department of justice for your ongoing basis to give me the opportunity to work for you as we go forth for those laws that bind us together as a nation per cry would not have anyone else by my side as to work to preserve national security and cherished liberty to make safe for cyberspace to and discourage of modern-day slavery as we confront the very nature of our relationship entrusted to protect and serve.
even as the world has expanded in wonderful ways the threats we face as he vaulted and every day we see an increasing disconnect between the communities we serve and the government we represent. but let me tell you what else pricey people speaking out in the time honored tradition and makes the country stronger with the belief the fed can be obtained and not cry out without the faith that we couldn't answer that the law-enforcement partners quest of support with the tools to calm the waters to keep the peace. yes we have great challenges
but our strength is to turn those into a great opportunities for growth many of our greatest examples have, after periods of heartbreaking remorse but they come because we choose not to give in to the retribution for but sometimes we forget this is never easy. over 200 years ago we decided what kind of country we wanted to pre-. we have not always lived up to those promises but with every challenge we get a little closer. we held the truth of the quality of all men to be self-evident and fought to maintain the government of the people by the people and for the people and we have followed of a dream deeply rooted in the american dream. at every turn as struggles
read and to tear us apart we will reconnect yourselves to the highest principles to give voice to give hope with their redress of wrongs to the crime of never again to protect those that call on us when they are cold and fragrant. these are our values and beliefs and we do great things. we have learned not that our values are truly could every generation must commit to make them real for the challenges of their time that the price of freedom this is how we have succeeded as a country and how we will meet these challenges today. the are of the moral universe means toward
justice and i believe it does. it takes all hearts and hands to keep a straight answer it - - trooper i stand before you today having been blessed beyond compare much is given and much is required. so i make these pledges to you today. i pledge to lead the department of justice with integrity and honor and a total dedication to the cause of justice into the people of this great nation a pledge your protection protection, liberty and rights will be my sacred charging to the law-enforcement community this department will be your partner as we work to carry out the highest mission with the protection of this great nation and in this wonderful department of justice i pledged to always remember the place of justice is
hollowed and continually strive to be worthy of the trust you have placed in me as we work together to uphold the constitution to protect the american people to serve the cause of justice and to my wonderful family and pledged to strive to continue to live up to the example that you have set to make these pledges for you all with the oath i have taken and the honor that i hold it year. fate you again for the trust you have given me for your confidence and thank you for sharing this wonderful day with me. thank you. [applause]