tv U.S. Senate CSPAN April 29, 2010 9:00am-12:00pm EDT
departments working in tandem and in concert to get this done because it's going to be multidimensional. and it's great to see you here, administrator adelstein, you know our work on the fcc for many years on the e.u. rate and you mentioned secretary vilsack come i had the opportunity to speak at them yesterday and i certainly can attest to that the casino's passion for rebuilding rural america and one central way of doing a disturbed broadband deployment he was mentioning to me and i think it's absolute right. and we have to be concerned about what's happening in our rural economies all across this country. ñwñwñwñwñwñwñwñwñwñwñwñwñwñwñwñw
i mentioned women's business centers is another example and the small business development centers. i think we really do have to use all of the presources of sba to make this possible. for small businesses and i know that there was testimony before this committee last week an they said they had the extensive bone structure within the sba, but i'm not so sure it's all being utilized in terms of your recommendation, in chapter 13 of your plan. >> well, my experience firsthand, the leadership of the sba is very focused on this, and you really have a two-part challenge, a little bit to the shoe lace issue.
one is take advantage of the opportunity to leverage existing resources that are all over the country to help small businesses, but there's an earlier challenge, which i know that the sba is taking quite seriously, which is training the trainer. in the new tools and the new technology. and i wouldn't comment on the level of resources other than to say that that alone is a very significant challenge, and without the presource to tackle that, it won't be possible to leverage the resources that are on the ground, to have relationships with small businesses across the country, so it's an important challenge, i know they're taking it very seriously. >> mr. grown, why isn't it all the resources, all the agencies being used in this regard? >> so the plan as discussed is to use all of the resource partners. we kick off the initial event with score, who was very excited and moving very quickly, but our fundamental commitment is let's take advantage of all of our resource partners, including the
women's business centers, who just signed up for a comparable program in the sbdc's as well. on the resource issue, we do agree that there's an important opportunity to train the trainers. additional resources will be required to do this in a fully effective way, in their broadband planned, the s.e.c. made a specific recommendation on the budget to do that. we are reviewing that, and we don't have a prospective on whether that's the right number yet or not, but we do think a commitment to this area will require additional resources to our resource partner. >> i think it would be important to know exactly what it will require from the sba so we don't learn a year from now or two years from now. i think there's so much potential opportunity and i think small businesses being underutilized in this economic recovery, and that's an understatement frankly, in terms of what is not happening that should be happening to leverage small business. and i see this in this regard --
say this in this regard, when it comes to broadband deployment and technological innovation. there's a, you know, a widening gap, you know, they mentioned this in a release back if january, and it is astonishing, the u.s. trade gap widening in advance technologies, one of the papers that were released, it's more than $55 billion to be calculated over a -- over a year period. i mean, it's widening, in terms of how much we're importing, versus what we're exporting, in terms of advanced technology and the incubation for that development of technology is going to occur with small businesses, so we're not doing enough r&d, we're not nurturing them, so what can we do in that regard? is anybody able to answer that question? >> well, i would say, senator, this is one of the driving reasons for and objectives of the plan, to make sure that the u.s. is the world leader in in novation, in the 21st century, so that both small and large
businesses are creating the technologies here, marketing them, distributing them, and that that continue. a world class broadband infrastructure available everywhere is necessary for that. and it's a serious subject of concern and a driver of the broadband planned. >> so what can we do about that? that's a huge gap, and a missed opportunity. >> i think there are many things to do, but transforming usf, so that it supports brad band everywhere at high speed. secondly, unleashing spectrum so we leave the world immobile. mobile broadband will be a huge platform for economic growth in the 21st century, technological innovation that we can export and pa second major objective we can pursue. >> i would be interested in having a time line about when this all should be happening which is in conjunction also with the grants that are issued by both of your didn't, administrative strickland, why
can't we have a timetable in terms of all this in terms of broadband penetration, not only acts of broadband, but obviously man businesses are indicating they may not even try to get high-speed internet, for example,. and because they use it for just basic applications, so could we have some sort of timetable that we envision this will happen in this country in therms of providing this deployment across the country. >> yes, we have set in the plan 5 and 10 year goals for the country an one of our next steps is to fill out all the milestones along the way, so we look forward to working with you. >> is that with respect to spectrum allocation or everything. >> yes. in fact, in the action plan that we released a couple of weeks ago, we outline exactly the steps that we'll take in the next 12 months to move hall of these forward. so we'd be happy to follow up with you on that. >> thank you, senator. i'm going recognize senator cantwell, who has been a great leader in this administration,
but before i introduce her, i want to talk about prices broadband throughout the world. sweden, $10.80, denmark will $11 a month, the u.s. is $15. we're in the ballpark, still high and we're fourth in the country, but this is what's worrisome. the penetration of households, i don't have penetration of businesses, but we're going to get that hopefully and submit it for the record as well. the u.s. ranks not first, not 10th, but 20th. we only have 60% penetration households. south korea, which ranks first, has 95%. but this is really startling. in speed, mega bites per second, japan is 94 megabytes per second. the u.s. is 14, but only 9 megabytes per second, so we have a tremendous challenge before this country and i know there are jurisdictional issues and
controversial issues, we see these hearings playing out in the commerce committee over the last several years, but this committee is going to stay focused like a laser orrin small businesses in america and their access to affordable, high-speed connections. which is not just their safety net, but our nation's safety net, and line out of this recession. senator cantwell. >> thank you, madam chair and thank you for holding this important hearing and the. impact on small businesses and to senator snowe for her appearance, because it really is an important issue for small business and for rural communities and we have many parts of the state of washington that have invested in broadband delivery as an economic strategy. we have beautiful places to live, and now the people can live there and get great access, they can operate many different kinds of businesses. so it's been a very successful strategy. i wanted to ask chairman
genachowski, the f.c.c. is looking at whether to extend that obligation to data services, such as the mobile brad band and internet services, so with the coming of 4g service, the intensity of data usage by small business is really going to be a big shall you're. i mean, they have to have continuity. it's essential that the networks relied on by small business have that ever present, seamless coverage, or else, you know, they won't be panel to locate in to these areas, -- able to locate into these areas, so how will this impact small businesses? recent decision? >> well, there were two parts to the decision. i completely agree with your premise that consumers that are individual consumers or small businesses expect to have seamless connectivity around the country, whether it's voice or data. as you said, we removed that particular exemption in connection with voice. at the same time, we launched the proceeding to determine rules on broadband data roaming,
with the goals making sure that american con up zooers and palm businesses can have seamless connectivity and at the same time, incentivizing the maximum possible investment in the networks and the fastest possible deployment, so that proceeding is underway and we're taking public comment. >> and how do you think some of the revenue that was, you know, part of the american recovery act will teach us about some of these deployments in rural communities? do you think that's going to give us good data and information about the demands and needs, or -- >> i think it should give us very helpful information, to the chair's point, it's one of the reasons and senator snowe's point for on going collaboration, information sharing, the nature of this technology and the nature of our plan is such that the technology and the plan will always have to change to accommodate what we learn, how technology changes. we approach it in that spirit, and we'll continue to have very strong collaboration to look at
what's working, what's not. one other thing, in the plan, there are a number of areas where we suggest pilot projects, where we reached a level of certainty that it makes sense to invest in experiment, but we don't know enough yet to commit to a large program. example is rural health care for -- sorry, telehealth for rural clinics and hospitals around the country. we have a small program at the f.c.c., we're going to expand it smartly with a series of pilot projects around the country. wary going to learn from it. our hope is it will work and we'll be able to come and say we need to invest more in this program to make sure that rural doctors and clinics and hospitals are connected so that we can get the full benefits everywhere, of electronic health care records, the cost-saving benefits and the improved health care benefits. >> well, i definitely appreciate that. we have, because we have inland northwest is already do this telemedicine, be believable results because of the large geographic area people have to
serve and the lack of physicians or pharmacists or what have you to serve them and done an amazing job and we have seen how these infrastructure investments, again, because we have been able to play off the bonneville power administration's redundancy and back bone into resolving some of these issues. i think the results are there, and so i hope that we are able to take those results, madam chairman, because i don't know, i've been here 10 years now, and it seems that we are always running up against basic business models that don't just -- that just don't quite get us there, and yet we know for sure the economic return on this investment is huge. so i appreciate the chair's having this -- chairs having this hearing and i hope that we can continue to push ideas that will allow for this deployment to take place. in a much more rapid fashion, so i thank the chair. >> >> thank you, senator cantwell and senator shaheen for questions and then we'll move to the second panel. >> thank you, madam chairman and
i will be very brief. if you have already responded to this question, i apologize, but one of the things that we've heard from some folks in new hampshire about the funds that were in the recovery act that are going out now, across the country in grants, is that there has been duplication from the rus and ntia for some of those grant awards, and that they have funded projects that are competing with providers who are already on the ground. does anybody want to comment on i suppose that would be you, mr. strickling. >> we've heard the criticism at rus. speaking for our. pa, i think those are not serious objections. our projects are designed to reach unser evidence and underserved parts of the
country. we focus on where we can bring the most benefits. and underserved area by definition is an area that has a certain amount of service, but we look to see how widespread the service is, what the speeds are of the service, many places that may see fairly slow consumer speeds may not be providing the high-speed internet that the anchor institutions, like the schools and the hospitals and the government facilities need, so we are focused on projects that will bring additional benefits to a given area, based on what's there today. the idea of funding competitors though, that's not the business we're in. the facilities that we're funding at the department of commerce are facilities that are open network facilities. they're available to anyone. we mrs. have focus -- also have focused on what we call comprehensive community projects, where we're really trying to bring the high-speed pipe that will serve a community or a certificate reese of
communities. our projects don't deliver too many services directly to homes and businesses. we are leaving that to private industry to do. but what happens is when we put that high-speed facility into a community, because of the open network nature of our projects, it's available to everybody, including the incumbents, so we're reducing costs potentially, not just for the person who receives our grant money, but also for anybody who would already provide service in an area or who might wish to provide service in an area, because there are these interconnection and non-discrimination obligations that make that government-funded pipe available to all providers. and in that sense, we think that we are bringing a benefit, certainly to the community, but mrs. to every provider who might serve that community, will it be an existing incumbent or a new entrant. >> do you want to response and maybe also in your response, if you want to add to this, as
we're thinking about doing this in the future, funding these kinds of grants, should we be thinking about better coordinating how that is done, and maybe instead of doing it through both agencies, think about how to put some sort of a working group together or maybe giving responsibility for one agency to fund those kind of projects? >> well, on that question, i think we are very closely coordinated now. we work almost daily, actually, we do work daily on our staff level and we talk almost daily about these programs. we fairly clearly distinguish between our program and the nta program in this second round, where we're doing last mile, they're doing primarily comprehensive community middle mile. we have separate complementary nofa's, so i think there's no overlap. we have an overlap on one grant application. we are very careful to ensure that we go to certain places, they go to others, so there has not been one example of any overlap between us.
now in terms of the overbuild issue, maybe the best way that secretary strickling laid it out very quickly, but a good way to illustrate that is what's happening in your state of new hampshire, something you're familiar with. we are very committed to going to the most unser evidence, remote parts of the country and new hampshire is no exception. our grant in new hampshire to bretto woods, which you're very familiar with with is more than 50 miles away from any city or town, very remote area in northern new hampshire, in the white mountains, that today doesn't have any broadband, according to the broadband service definition we have. the kind of broadband service we need. this as you know is a very devastated part of new hampshire, with relatively low incomes, highest unemployment in the state, because the paper mill shut down. what are the jobs of the future. tourism, there are second homes, but somebody who is coming in to a second home in that beautiful part of new hampshire can't say there in they're from new york city if they don't have broadband, so how are we going
to bring money i into that community. we're creating jobs to an area that doesn't have broadband, they're going to have broadband second to none with fiber to the home, more than 20 mega bits per second in new hampshire and we tried to focus on those areas around the country and to go to those areas first. some areas underserved by definition, there mean some pockets of service there, but we're trying to bring them hall up and bridge the digital divide between the more populated areas and the less populated airplane i can't say and that involves a comprehensive approach to funding the entire service area. >> thank you. thank you, madam. >> thank you. you all have been very good and let's move to the second panel again. thank you all for your testimony. we appreciate it. as the second panel comes forward, with their introduction as they're taking their seats and again, thank you all so very much. our first panelists will be senator gordon smith, who has been welcomed here by many of his former colleagues, he now
represents the national association of broadcasters as president and c.e.o., welcome back, senator. next is former congressman steve largent, he was -- served in the for my number of terms between 1994 and 2001, now he's president of the wireless association, and brings a little bit different perspective, of course, than senator gordon smith. we're happy to have him l. we have from lafayette, louisiana, terry huvall at my request to testify today. he is director of lafayette utility service. in addition, mr. huval speaks fluent french and requested that we conduct the hearing in french on all of our behalf, i declined, so it will be, mr. huvall in english. next, mr. tom goerke
vice-president of century link, he brings years of legal expertise such as his company, he was in private practice before century link. is headquartered in monroe, louisiana. we're extremely proud of this company has it has grown and expanded and most recently signed an agreement to purchase quest, which puts them in the top among industry leaders in this country. and lastly, we have steve friedman, who is currently chief operating officer for wave broadband, a kirkland washington based company that serves more than 170,000 customers, located in communities in the states of washington, oregon, and california. so i think we've had our changeout conduct and we're so happy to have everyone here on the second panel, and senator smith, we'll begin with you. >> thank you, madam chairman. in the interest of time and in
preexpect of your schedule, i'll put my extended remarks in the record and speak briefly to a few points. >> thank you. without objection. >> madam chairman, home broad carsers bring together communities with information that entertains them, information that often is life saving. from lake charles, louisiana, to banger, maine, local broadcasters take great pride in providing america's families with local news, weather, sports, emergency information, and other highly valued programming. broadcasters strongly support expanding access to high-speed broadband, to every american an believe we can play hand important role in helping to achieve that national goal. due to the complex nature of this plan, i believe that congress should have and take the time to fully scrutinize and
dissect its representations. i thank senator snowe and senator kerry for the i want ducks of s-649, the spectrum inventory legislation. it's imperative that we get all the facts, so that we do this right. local broadcasters are small businesses. and they rely on other small businesses for advertising and for serving your constituents. we have must not jeopardize this fragile communications ecosystem with policy, solutions, that jeopardize this. at the direction of copping, local broadcasters successfully transitioned to digital of it, giving back more than a quarter of the spectrum that tv broadcasting it had. the government spent nearly
$3 billion getting convertor boxes. broadcasters have spent $15 billion making the digital transition. the american consumers have spent untold billion dollars getting new digital tv's. local broadcasters are now offering hyper local, multitasking programs in high-definition. and they look forward to providing consumers with mobile digital television, so that you can see live stuff right here on your phone. and 3d television in the future. that's the promise that was made to the broadcasting spectrum. and to american consumers. i thank you, chairwoman landreaux, for your help in facilitating local broadcasters as first responders. in times of disasters, local broadcasters run towards the problem, not away from it. we stayed on the air during the gulf coast hurricanes and when washington was blanketed by two
back-to-back blizzards, essential emergency response was supplied to residents of this capitol area and in the day of terrorism, it is important to recognize that broadcasting is the one signal that literally could be the difference of life and death for people confronted with terrorist actions. i would like to put on the record, madam chairwoman, how much it was appreciated chairman genachowski coming to the naba show in las vegas, stating that this program would not evolve from voluntary to compulsory. i would also like to say that contrary to a report in the trades, the chairman and i never reached any deal. what he said is what he said. and we are prepared to work with him.
on the issue of voluntary, however, there is one piece of the plan that is of great concern to broadcasters. and that is the spectrum fees that are proposed for broadcasters. we are concerned that this is a mechanism to force broadcasters, small businesses especially, who are small businesses, broadcasters, that will force them off of the air. make no mistake, such a punitive measure, such a peep, would be a devastating blow to small businesses that i represent in the broadcast industry, in the communities that they serve and who serve your constituents. while not a part of the broadband plan, i can't help but say congress should also resist shifting the scales of the fair market based system of retransmission consent. the f.c.c. should encourage the deployment of fixed wireless broadband services in rural
areas, using empty broadcast channels. if done the right way, this service has the ability to great great hi increase rural penetration for broad based constituencies, would you tell us taking -- the nab is proud to be part of the discussion about the future of american communications and simply put, any notion that we're looking at a world of broadband versus broadcast is false. it's a false choice. there are ways that we can help, and there are certainly ways that the broadband users today can build out their networks without compromising the essential service that broadcasters provide to the american people. >> thank you very much, and that was an excellent statement. and let me ask you all, if you could try to keep your comments to about three minutes each, we will submit your entire statement for the record and then senator snowe and i both have series of questions along
with senator shaheen and i'm going to ask senator snowe to go first for the questions, because she's got a 120 choke meeting and i have -- 12:00 meeting and i have a little more time. >> on behalf of ctia, want to thank chairwoman landreaux and ranking member snowe and all the members on the committee for the opportunity to participate in today's hearing on the national broadband plan, its impact on small business. cti witness include integrators, application developers and each of which contributes to making the united states the most competitive, innovative wireless marketplace in the world. large or small, cti's members are focused intensely on helping to provide wireless services an products that benefit every american consumer and business. cti's membership believes that the national broadband plan represents a significant opportunity to expand broadband internet access to reach all americans. this is especially true with respect to the spectrum and.
need to address what the f.c.c. chairman has termed a looming spectrum crisis. thus, we're excited by the plan's intensive focus on the need to make additional spectrum available for mobile broadband services. accomplishing that goal quickly is critical. as the plan's author, blair levine said last week, if we get the implementation that the mobile piece of the plan right, we can precipitate a massive investment boom and bear in mind a world leading broadband ecosystem and if we get it wrong, we will cause our economy to suffer. we agree with blair and we're focused on helping to get it right. with adequate spectrum and continued significant private investment and innovation, we can ensure that every american has access to broadband at home, at home, at work, at school and in hour public institutions, we believe that continued evolution towards always on, always available, high-speed wireless broadband, has profound implications for every segments of our society, including america's small businesses.
i'm going to skip over some of my statement here and submit it for the record, but implementation of the spectrum recommendations in the plan aided by the enactment of senator kerry and snowe's radio spectrum act will enable all of these companies and others to grow, while also helping to promote continued u.s. leadership in the wireless industry. beyond addressing the looming spectrum crisis, policymakers can help -- can enhance small business's ability to succeed, by reforming the tax code, to better reflect the reality of our information technology. mobile devices are no longer a luxury for businesses, they're a necessity. the tax code must reflect this shift hand senator kerry's other mobile cell phone act would make a much needed change by eliminating the outdated record keeping, in a day and age when the wireless device was called a car phone and a minute of airtime caused an order of magnitude more than a minute of use does today. requiring every person with an employer provided device to
comply with detailed call by call record keeping requirements might have made sense in the late 1980's, but it sure doesn't make sense today. i will just say the wireless industry looks forward to working with congress, the f.c.c. and other stakeholders to ensure that every american consumer and business has access to robust, mobile broadband service. by adopting the national broadband plan's spectrum recommendations, updating our tax policies an continuing a strong commitment to encouraging private investment, we can make that vision a reality. i appreciate the opportunity to share these thoughts and i look forward to your questions. >> thank you very much. mr. huvel. [speaking in french] >> i couldn't pass it up. >> i told you he would do it. >> i thought you would enjoy that. :
and we didn't do it with the 1 dollar of federal government funds and state funds or local taxes. we did it because the people of the committee are allowing to move forward with this initiative. and you would think that that would be coming you know, anything placed for a coat because we're not borrowing money, not having to give tax dollars. but i will play the challenge has been great. the telecommunications i
provided language inside of any entity could provide telecommunication services, local government preserve that if they could see that type of service. found out later on that through the cases of cuba supreme court dynasty could present or adjust the bill for local governments to get into this kind of business. the louisiana vocal government fair competition act was passed in 2004. its label isn't anything but -- hasn't been anything but a fair act. it provides numerous cause and challenges for us to overcome bills to provide these services to our customers are your and continued intimidation by communication and bellsouth over the years to try to make it more difficult and more cost effective services. we believe that the simple measure of trying to get
complete shackles off of local governments, for right at the services will have the greatest impact on getting broadband out because then you'll have a truly competitive option that companies who decide that jamaica's investment, given the request to and laughingly asked to cable companies, it was too small, they were going to make the kind of method. forget what i try to do it ourselves they oppose it to if your local government are fighting the services, then this private services will get it. they're going to local local governments to provide the services. we could do this or so. since 1896 lafayette dominican republic policies have built systems and we can do this and we are doing it already. in my written testimony has much more complete stories about what we've been true, but suffice it
to say we have the solution to this album. tonight well, thank thank you vy much i'm glad you're to testify and i wanted to to be because it's a very controversial issue that's come before the commerce department particularly, but i think these views are important to be heard by small businesses that may be entitled to have municipal providers, as this debate goes on to have a voice at the table to see how we work gordimer extremely proud actually, i am of lafayette at being one of the first persius in the whole country to a virtual universal high-speed service at and how you got there is a different subject, but the result are coming out, very impressive and i want to thank you for being here. mr. gerke. >> good morning, madame chair, ranking member snowe and members of the committee. thank you for the opportunity to talk about broadband across america for over small businesses. our century link is the nation,
one of the nations leading rural providers of voice broadband data and video services with about 7.2 million customers spread across 32 states. small businesses and onto pillars are an important part of our past, present and our future. in fact, century link began as a small businessman small louisiana. clark marie williams bought a small family telephone business for $500 with just 75 p. to describe her is in a switchboard set up in the front parlor. today of course we have a national or print uprooting hundreds rural communities, but our core values and our commitment to services, including service to small businesses has not wavered. center that serves over 414 small hunter thoughts and small businesses including 12,000 louisiana one. we understand how important it is to small businesses. especially rural communities where it is a central component of economic development in
breach. it's just one example of small tree nursery that we serve in rural central louisiana was able to extend itself from a purely local market into a much larger multistate region, growing the business, bringing economic development and jobs to the community. just as traditional phone service was critical to linking to the rest of the world, in today's environment, broadband is now the key enabler for communications come entertain cruncher entertainment and commerce. it sets out reform of federal policies and that impact the availability and affordability of broadband. we appreciate chairman landrieu's leadership for focusing on the plan of small businesses, especially in rural areas. for small businesses and world communities perhaps the most important recommendation the national broadband plan is to reform universal service and and or care compensation. what issues have tremendous
impact on bringing broadband to rural communities, especially because all telecom providers rely on rural carriers, kerry is a resort like century link to carry voice and data traffic on a sparsely populated areas where cable and wireless competitors often do not surf through universal service deliver for carriers provide quality and rates comparable to those in larger areas. one of the key mechanisms that hope he broadband and other services affordable for small businesses. as the nation focuses on broadband deployment, we believe are fiber rich corduroy or plain networks offer the best, fastest and most economical to the rapidly increasing demand for small businesses. as the sec considers its open internet proceedings, we urge its leaders to work closely with broadband providers and companies that have committed to continue providing a positive internet experience. we urge the fcc and congress to
avoid a heavy-handed regulatory approach that would impose legacy voice, telephone regulations on modern networks. in summary, i'm pleased to share with you last week that her announcement of quest we believe this combination is important positive transportation not only for consumers but for the small businesses, the combined networks offer incredible potential to accelerate deployment and improve broadband services. our goal is to provide the highest quality and affordable voice and broadband services for customers. we trust members of this committee and the fcc will see the strong public interest benefits of this merger, its great potential and join us in gaining the necessary state and approvals of promptly as possible. we look forward to your questions. >> thank you. mr. friedman. >> thank you. as an association representing fallen medium-sized independent cable operators, we bring a unique respect of on the
broadband marketplace. our members have historically served communities for the big guys find it unattractive to serve, ranging from oral services in louisiana to more urban and suburban markets in all 50 states. today cable service to 95% of the country, the vast majority of which receive speed of at least three megabits per second faster than most dsl providers. as a result, small businesses are increasingly turning to cable for broadband. cable is the best technology in the ground today to meet the administration's goal of delivering 100 broadband speed to alter the advent of dr. 3.0 cable operators can deliver the speeds of either existing network without the need for government funding. however, government still hasn't important role to play. aca recommends congress and the fcc focus on the need to upgrade left on the structure come the final import to the user. however more attention needs to be paid to the middle mile.
that part of the network that runs between a broadband provider system and the internet but. for aca members, the middle mile links available are often high cost, low capacity types created a bottleneck that slows data speeds to our customers. aca members have considered constructing their own middle mile links, but the construction is cost habited. we are pleased by the anti-yeast focus on the middle mile and a focus on the issue in the national broadband plan for the key now is to ensure the fcc acts quickly on its recommendations. a second for smaller cable -- for smaller cable operator with limited network capacity to provide doctors 3.0 speed the provider must come up with additional bandwidth here for many operators the most cuts effective way of doing this is by transitioning analog channels to digital. to ensure that cable operator -- their subscribers to lose access to the new digital programming, cable operator must provide a digital set-top box for each of its subscribers tvs.
aca is clear that the fcc recently recognizes the benefits of allowing for operators to purchase and deploy low-cost, low functionality boxes. this modification will make the capacity for broadband speeds of up to 100. >> in a wrap up in 30 seconds. >> okay. finally, we support the administration's goals of providing more broadband services to consumers in populated areas of the country. however, were disappointed our u.s. and ntia funded projects in the first-round of it over bill casey numbers and others will bargain with the private capital to deploy broadband in their communities. on behalf of aca, we pressure the congress, the fcc and agencies are doing to support broadband expansion and growth of our areas and rural areas. thank you for a time and attention i welcome your questions. >> we will be destined to say say that you can watch it all online on c-span.org and check out her video library.
we're leaving to take you a bit early to washington national cathedral for the funeral service for the late civil rights leader, dorothy height, the one-time chairman of former president of the national council of women died last week at the age of 98. president obama will deliver the eulogy at today's ceremony in a couple of cabinet members there in the back, the attorney general and the leaders of the house and senate. speaker pelosi, senator reagan secretary of state hillary clinton on the screen or, worse coverage on c-span 2. ♪ ♪ ♪
whoever has faith in me, shall live. even though she dies. everyone who has a life, has committed herself to me and faith shall not die forever. as for me, i know that my redeemer lives, and that at the last he shall stand upon the earth. after my awakening, he will raise me up and in my body, i shall see god. i myself shall see, and my eyes
shall behold him with my friend, and not a stranger. for none of us has light in himself, and none becomes his own master when he dies. for if we have life, we are alive in the lord. and if we die, we die in the lord. so then, whether we live or die, we are the lord's possession. happy from now on are those who die in the lord. so it says, says the spirit, for
>> on behalf of the washington national cathedral, i welcome you to the service of thanksgiving for the remarkable life of dorothy height. today, under the sweeping arches, we will celebrate a life and death, courage, and moral grandeur. and we will take time to remember our sister, dorothy. to honor her life of service to the cause of equality and justice. and to give her back to god in gratitude and hope. this cathedral is a church for our nation, and a house of prayer for all people. and so it is meant to be a home for everyone who comes here a spiritual home for all seekers, for all people of faith. and so we welcome you warmly today, and hope you will return to be with us again and again
your let us now continue in giving thanks for dorothy height's life, as our service continues. lord be with you. let us pray. god's mercies cannot be numbered, except our prayers on behalf of your servant, dorothy, and grant her a and entrance into the land of light and joy, and the fellowship of your saints. through jesus christ our lord, lives and reigns with you and the holy spirit, one god now and forever. a man. -- amen. >> all, merciful god, whose wisdom is the beyond our
understanding, deal graciously with dorothy's family and friends in their grief. surround them with your love, that they may not be overwhelmed by their loss. but have confidence in your goodness, and strength to meet the days to come. through jesus christ our lord, amen. >> is not this the fast that i choose, to loosen the bonds of injustice, to undo, to let the oppressed go free and to break every yoke. is it not to share your bread with a hungry and bring the
homeless poor into your house? when you see the naked, you cover them, and not to hide yourself from your own can. then, your light shall break forth like the dawn and your healing shall spring up quickly. your vindicator shall go before you, the glory of the lord shall be your rear guard. then you shall call, and the lord will answer. and you shall cry for help, and he will say, here i am. if you remove the yoke from among you, the pointing of the finger, the speaking of evil, if you offer your food to the hungry, and satisfy the needs of the afflicted, then your light shall rise in the darkness, and
your gloom shall be like the new day. the lord will guide you continually, and satisfy your need and parched places. and make your bones strong, and you shall be like a watered garden, like a spring of water whose waters never fail. your ancient ruin shall be rebuilt. you shall raise up the foundation of many generations. you shall be called the repair of the breach. the restore of the streets. the word of the lord. >> thanks be to god.
>> good morning. >> good morning. >> clergy, president and mrs. obama, vice president and mrs. biden, distinguished guests. my name is bernard randolph senior. i am dr. height nephew, and i'm from saint louis, missouri. i am a retired physician there. on this occasion, speaking on behalf of the some 50 members of dorothy height's family who are here today in commemoration of her life and to give thanks for the support and prayers that have gone up on her behalf since her passing a week or so ago. in reflecting on her life, one
of the things that comes to mind first is my first meeting with my aunt, dorothy. that was some 80 years ago when i was about eight years old and she was about 18, just graduating from high school. she came to new york to live with our family. my mother was her oldest sister. and before she arrived, we knew in advance that we are going to have a houseguest who was brilliant and wonderful, educational career, as already was somewhat of a celebrity. and that she had one a national award contest. and we were advised by my mother and father that we should be on our best behavior. [laughter] >> and if possible, try to emulate her accomplishments.
i think we did the best we could. [laughter] >> and what this signifies one of the talents that dr. height had throughout her life, the fact that she was a good mentor and someone who had the capacity to inspire other people to do the best they could. and she did that with me as a child, and she was by my side when i entered howard university medical school many years later. i would like to also, at this time, to thank the staff at howard university medical school for the excellent state of the art care that was rendered to her while she was there. and also for the prayers and support that went to her during that trying period of her life. and to those of you who are
here, in commemoration of her life, and many attainments in the field of civil rights and human rights and improving the life of african-american women, and we would ask at this time that those prayers continue, and that the legacy of doctor dorothy irene height goes on to continue the progress that was made to her wonderful, long life. thank you very much. [applause] ♪
>> good morning. mr. president, mrs. obama, mr. biden, secretary herman, friends and family of dr. height dr. height. dorothy irene height spent her life redefining woman. even as a teenager, she played basketball for her high school, long before girls or women's competitive sports were acceptable. from the beginning of her youth, and throughout her life, dr. height was fun condoning about the indignities of fools. instead of the more female behavior to endure quietly.
of course, we know about dr. height's deserving numerous awards. i was fortunate to watch her receive the presidential medal of freedom in 1994, and the congressional gold medal in 2004, give ever so many speeches, open the bag is an historic national council of negro women's building on pennsylvania avenue in 1995. but she placed equal importance on enabling people to be respected, legally, worldwide. indeed, dr. height gave her time and support to those in need, no matter how she was feeling. now, that is the more familiar definition of woman. however, many times righteousness was not applied to her. but her clear determination and
strong positive self-perceptions did not allow the acted out the egregious sexist behaviors to push her to the background like they had successfully done, and had permitted to too many female civil rights activist in the 1950s and '60s. [applause] >> some public or prosperous people are not confident. they might be lacking in that deep knowing and feeling value, which, of course, where anyone could be ultimately self-destructive and hurtful to others. dr. height, however, exuded self value. and she was definitely firm and assertive without losing woman.
she searched for in her words a common ground to solve problems. and yes, she dressed in beautiful colors with her trademark hat, no matter where she was. she had an interesting way of releasing a person from her personal space. for example, she wants to hold meon you will not be moving into the future with me. [laughter] >> and yes, she could laugh. i have and and double memory of her laughter with rivers of tears on her face as she watched my friend ducked me repeatedly in a swimming pool. she found that to be held areas for some reason. and my husband, comedic comments about her on the stage, oh, how those words made her laugh. i loved her. my husband and i loved her.
we sent flowers to her quite often. i was told they made her smile. which is what we wanted to accomplish, to surround her with nature's beauty while she was fighting against our nation's evil isms, racism, sexism, class is him and ageism. and speaking of ageism, when she became an elder, dr. height again refused to be pushed into the background, just as she had done in the 1950s and '60s. in her counter action to sexism. dr. height showed us that our lives are always worthy, and that a long life must be acknowledged and honored, and that our brains can turn off at any age. at age 92, she said to me that
the throne saying, see, the home of god is among the mortals. he will dwell with them as their god. they will be his peoples, and god himself will be with them. he will wipe every tear from their eyes. death will be no more. morning and crying and pain will be no more. for the first thing has passed away, and then the one who was seated on the throne said, see, i am making all things move. also, he said, right this, for these words are trustworthy and true. then he said to me, it is done. i am the alpha and deal make a. the beginning and the end.
and to all of she was a friend, but do you she was family. and my family offers our sympathy towards your loss. we are gathered here today to celebrate the life and mourn the passing of dr. dorothy height. it is fitting we do so here in our national cathedral of saint peter and st. paul. here in a place of great honor, here in the house of god. surrounded by the love of family and friends. the love in this sanctuary is a testament to a life lived righteously. a life that lifted other lives, a life that changed this country
for the better over the course of nearly one century. michelle and i didn't know dr. height as well as long as many of you. we were reminded during a previous moment of the service, you lived a full life. [applause] >> but we did come to know her in the early days of my campaign. and we came to love her, as so many loved her. we came to love her stories, and we loved her smile, and we loved those hats that she wore like a ground.
regal. in the white house, she was a regular. she came by not once, not twice, 21 times. [laughter] >> she stopped by the white house. [applause] >> took part in our discussions around health care reform in her final months. last february, i was scheduled to speak, her and other civil rights leaders, to discuss pressing problems of unemployment. reverend sharpton, been jealous of the naacp, marc morial, the national urban league, and we discovered that washington was about to be blanketed by the worst blizzard in record. two feet of snow. so i suggested to one of my age,
we should call dr. height since they were having to reschedule the meeting. certainly if the others, she should not feel obliged. true to form, dr. height insisted on coming, despite the blizzard. nevermind she was in a wheelchair. she was not about to let a bunch of men -- [laughter] [applause] >> in this meeting. it was only when the car literally could not get to her driveway that she reluctantly decided to stay home, but she still sent a message about what needed to be done. and i told that story, partly because it captures the quiet, dogged, dignified persistence that all of us who loved
dr. height came to know so well. and attribute that we understand she learned early on. born in the capital of the old confederacy, brought north by her parents, part of that great migration, dr. height was raised in another age, in a different america. beyond the experience of many. it's hard to imagine, i think, life in the first decade of that last century. when the elderly woman that we knew was only a girl. jim crow ruled the south. the clan was on the rise. powerful political force. lynching was all too often the penalty for the offense of black skin. slaves had been freed within
living memory, but too often their children, their grandchildren remained captive because they were denied justice, denied equality, denied opportunity, denied the chance to pursue their dreams. the progress that followed, progress that so many of you helped to achieve, progress that ultimately made it possible for michelle and me to be here as president and first lady. that progress came forward. [applause] >> that progress came from the collective efforts of multiple generations of americans, preachers and lawyers, thinkers and doers, men and women like
dr. height took it upon themselves, often at great risk, to change this country for the better. men like deputy be deployed, a. philip randolph, women like mary mcleod bethune, there are americans whose names we know. they are leaders whose legacies we teach. they are giants who fill our history books, dr. dorothy height deserves a place in this. she, too, deserves a place in our history books. [applause] >> she, too, deserves a place of honor in american memory. look at her body of work. desegregating the ywca, laying the groundwork for immigration
on wednesdays in mississippi. lending takes to poor farmers as a sustainable form of income, strategizing the civil rights leaders, holding her own, the only woman in the room for this generation. even as she led the national council of negro women with vision and energy. [applause] >> vision and energy, vision and class. but we remember her, not solely for all she did during the civil rights movement. we remember her for all she did over a lifetime. behind the scenes, to broaden the movement reach, to shine a light on stable families and tightknit communities that make
us see the drive for civil rights and women's rights, not as a separate struggle, but as part of a larger movement to secure the rights of all humanity, regardless of gender, regardless of race, regardless of ethnic city. it's an unambiguous record of righteous work. worthy of remembrance, worthy of recognition. and yet one of the ironies is that year after year, decade in, decade out, dr. height went about her work quietly without fanfare, without self-promotion. she never cared about who got the credit. she didn't need to see her picture in the papers. she understood that the movement gathered strength from the bottom up. those unheralded men and women
who don't always make it into the history books, but who steadily insisted on their dignity, on their manhood and womanhood. [applause] >> she wasn't interested in credit. but she cared about causes. the cause of justice, the cause of equality, the cause of opportunity, freedom of cause. that willingness to consume herself that humility, that grace is why we honor dr. dorothy height. as it is written in the gospel of matthew, for whoever exalts himself will be humbled, and whoever humbled himself will be exalted.
i don't think the author of the gospel would mind me rephrasing whoever humbled herself will be exalted. [applause] >> one of my favorite moments with dr. height, took just a few months ago. we had decided to put up the emancipation proclamation in the oval office, and we invited some elders to share reflections of the movement. and she came, and it was and intergenerational event. so we had young children there as well as elders, and the elders were asked to share stories. she talked about again in the 1940s at the home of dr. benjamin mays, then president of morehouse college. seated at the table that evening was a 15 year old student, a gifted child, as she described
him, filled with a sense of purpose who was trying to decide whether to enter medicine or law or the ministry. and many years later, after that gifted child had become a gifted preacher, i'm she had been told to be on his best behavior, after he led a bus boycott in montgomery, and inspired a nation with his dreams, he delivered a sermon on what he called the drum major instinct. sermon said we all have the desire to be first. we all want to be at the front of the line. a great test of a life, dr. martin luther king, jr. said it's the heart of that instinct to redirect it towards advancing the greater good.
towards changing a community and a country for the better, for doing the lord's work. i sometimes think dr. king must have had dorothy height in mind when he gave that speech. for dorothy height met the test. dorothy height embodied that instinct. dorothy height was a drum major for justice. a drum major for equality, a drum major for freedom. a drum major for service. and the lessons she would want us today, the lessons she lived out each and everyday. that we can all be first in service. we can all be drum majors for a righteous cause. so let us live out that lesson.
blessed are those who mourn, for they will be comforted. blessed are the meek, for they will inherit the earth. blessed are those who hunger and thirst for righteousness, for they will be filled. blessed are the merciful, for they will receive mercy. blessed are the pure in heart, for they will see god. blessed are the peacemakers, for they will be called the children of god. blessed are those who are persecuted for righteousness sake, for theirs is the kingdom of heaven. blessed are you, when people revile you and persecute you and, utter all kind of evil against you, falsely on my account. rejoice, and be glad, for your reward is great in heaven. for in the same way they persecuted the prophets who
were before you, you are the salt of the earth. the salt has lost its taste, how can its saltiness be restored? it is no longer good for anything but it is thrown out, and trampled under foot. you are the light of the world. a city built on a hill cannot be hid. no one after lighting a lamp puts it under the bushel basket, but on the lampstand, and, it gives light to all in the house. in the same way, let your light shine before others, so they may see your good works, and glorify your father, which is in heaven. the gospel of the lord. >> praise be the lord. >> please be seated.
>> i don't know how many times in the course of the last 98 years dorothy -- or her life she might listened to the passage we heard read by bishop mckenzie but imagi she heard it quite a few times. the words, called "the beatitudes" are so familiar, that it is easy to miss how strange they must have downeded when jesus first uttered them 2000 years ago, and, how strange they still are. blessed are the poor in spirit... blessed are those who mourn... blessed are the meek... these words are saying that the weakest, the most broken, the most vulnerable people, are onto
something. that everybody else is going to miss. and, that somehow they are at the center of god's heart, and god's work. all of a sudden as jesus is reciting the blessings he shifts from talking about people, blessed are the meek... to addressing his followers directly. blessed are you, he says, when people revile you, and persecute you and utter all kinds of evil against you on my account. that is the way that treated the prophets, long ago. and the disciples, remember, are a very ordinary bunch. fishermen, people off the streets. a couple of irs agents on the job. they are not movers and shakers, and power brokers and the famous, but jesus is saying to them, that you are the ones who are going to change the world.
you are the salt of the earth, he says. you are the light of the world. i'm calling you to be edgy, provocative, salt in the system, and gleaming lights of moral clarity to confront the world and guide it, salt and light, that is your job. to build the new world i hope to see. today, we are giving thanks for the life of a woman who over 98 years became an unstoppable force of salt and light for our country. for days, now, and again this morning, we have been celebrating this woman, known as the grand dame of the civil rights movement. its unsung heroine, one of the handful of the civil rights' most important leaders. dorothy height's 80 years of involvement spans the lynchings of the 1930s and activism of
eleanor roosevelt in the 1940s and school segregation in the 1950s and the civil rights movement of the '60s and beyond and every phase of it demonstrated her tireless dedication to equality and justice. and as we have heard today, dorothy height's commitment to social justice led to her determined efforts to overcome gender bias, in our society as well. within the civil rights movement, even. a pastor friend of mine from chicago, sent me a note this week, filled with admiration, for dorothy height. and, in it he recalled her memories, of being eased to the periphery among the male civil rights leaders whenever a photo was to be take en with the president of the united states or another dignitary. the civil rights leadership, my friend said, was a man's world. and nevertheless, this brave,
persistent woman, won her place in the highest counsels of the movement and, today, the president himself has come to honor her. [applause]. >> dorothy height was, by any estimation, one of the heros of the last century of american life. today, we give thanks for her saltiness. for her bright and unrelenting light. and, for her steely and indomitable spirit. now, this remarkable woman's earthly pilgrimage has ended and we are now called to thank god for the gift that she has been to our country and her friends and family and to her colleagues at the national council of negro women and organizations to which
she gave so much. undergirding her life and work, must certainly have been the kind of faith that is being expressed in the service her family planned for today. isaiah the prophet we heard, a few minutes ago, issues god's call to loose the bonds of injustice, to let the oppressed go free and to share your bread with the hungry, satisfy the needs of the afflicted, you shall be called the repairer of the breach, the prophet says, restorer of streets to live in. it is clear, those words were marching orders. for this brave indomitable woman. and the passages from the christian scriptures today speak of the conviction that death is not the final word in the human saga. i am the resurrection and the life, says the lord, we have heard as the service began. i am the alpha and omega, we
heard in one of the lessons, christian faith is grounded in the conviction that there is a power and work in the cosmos and in every human life that evil and death cannot finally defeat, and that means we humans can live with hope, both in the life, and in the great mystery that awaits us, on the other side of death. we human beings know so little, of eternity that we tend to write it off. but, the christian gospels themselves are filled with acts of healing, acts of forgiveness and of raising up the downtrodden and confronting powers of evil, and, in them, jesus kept saying, god's kingdom was breaking into history. eternal life was erupting in the middle of ordinary life. wherever hope and healing and justice appear, people are glimpsing eternity itself.
and so we can say that eternity was breaking into history. when rosa parks sat down on that bus, when those marchers made that are way across the bridge in selma and martin luther king stood on the steps of the lincoln memorial to proclaim his dream, and when dorothy height challenged one organization after another, to open their doors, for everyone. we glimpse eternal life here and now, when hearts are soothed and body are healed, when decent schools and health care and safe streets become the norm, when children and families have a chance to succeed, when guns and violence no longer desecrate the streets. in those moments, good'sd's etey is breaking into time, giving glimpses of the healed society, even the eternity that awaits
all of us. an eternal life beyond death, must be something like all of these moments of healings and wholeness, flowing one into another, time and again, until time doesn't matter, any more. as things are gathered fully, into the life of god's love. well, that is the vision that seems to have shaped dorothy height's amazing life. a sense that there is what poet jo dunn calls one mutual at the heart of reality and a claim that death is not the end and love and healing will have the final word and, it is faith in that ultimate vision, that inspired the prophets and truth-speakers, and organizers, and dorothy height, herself.
now, dorothy height has entered fully into god's life. because we know so little of what that must be like, we have to leave it to the poets, to give us at least a vision of that mysterious future ahead for all of us. as i want to close, with the final words of james welldon johnson's poem, "go down death, a funeral sermon." and death took her up, like a baby. up, beyond the evening star. out beyond the morningstar. into the glittering light of glory. onto the great white throne above. and jesus took his own hand, and wiped away her tears. and he smoothed the for rows of her face, and the angels sang a little song, and, jesus rocked her in his arms, and kept
saying, take your rest, take your rest, take your rest... weep not, weep not. she is not dead. she is resting in the bosom of jesus. take your rest, sister dorothy. take your rest. you have been salt and light for nearly a century. and you have left this world a more justice, more equal, more hopeful place. take your rest, sister dorothy. take your rest. and may light perpetual shine upon you. amen. [applause]
>> let us pray together, a prayer that jesus taught his disciples. our father, who art in heaven, hallowed be thy name, thy kingdom come, thy will be done on earth as it is in heaven. give us this day, our daily bread, and forgive us our trespasses as we forgive those who trespass against us. and lead us not into temptation, but deliver us from evil. for thine is the kingdom, and the power, and the glory, forever and ever. amen.
potatoes, and she loved a good party. and she was usually the last to leave. she loved cheering on the washington redskins. and the new york yankees. and she loved cheering on each of us. even sometimes when we didn't know that we needed it. in her soon to be published book, "living with purpose," a book that she just finished, two months ago, she wanted to have it out for her 98th birthday. that was going to be her gift to us. but, in the opening pages of that book, she wrote, that a reporter asked her in january what she considered her greatest accomplishment to be. and she responded, by saying, my
greatest accomplishment is that i started on a journey and i'm still on it. we'll see, she said... where i end up. [applause]. >> we know that she ended that journey very much the way she began her journey, and she taught us lessons in her transition. the same lessons that she had been teaching us, all of her life. to keep fighting. and to never take yourself out of the game. because she didn't take herself out of it. you know, at the very end, she had no less than 3 curtain calls
in her final month of hospitalization, at howard university. and, each week, each week, we gave her up. but, each week, she rallied. and, we kept smiling through our tears at her determined spirit. it really did take us a moment to realize that she was really preparing us. she was preparing us as she was preparing to take her final bow. and, to exit this earthly stage. and, so, as she slept peacefully, peacefully, into the
rising up. you discern my thoughts from afar. you trace my journeys and my resting places. you are acquainted with all of my ways. indeed, there is not a word on my lips, but you, oh, lord. you know it altogether. you press upon me, behind and before and lay your hands upon me. such knowledge is too wonderful for me. it is so high that i cannot attain it. ... where can i go from your spirit? where can i flee from your presence? if i climb up to heaven, you are there. if i make the grave my bed, you
are there also. if i take the wings of the morning and dwell in the uppermost parts of the sea, even there, your hand will lead me. and your right hand holds me fast. if i say, surely, the darkness will cover me and the light around me turn to night, darkness is not dark, to you. and, night is as bright as the day. darkness and light to you are both the light. for you, yourself, created my innermost parts. you knit me together in my mother's womb. i will thank you because i am marvelously made. your works are wonderful. and, i know it well. my body was not hidden from you.
while i was being made, in secret, and i was woven in the depths of the earth, your eyes beheld my limbs, yet unfinished in the womb. all of them were written in your book. they were fashioned day by day. when as yet, there was none of them. how deep i find your thoughts, oh, god. how great is the sum of them. if i were to count them, they would be more in number than the sand. to count them all, my lifespan would need to be like yours. search me out, oh, god, and know my heart. and lead me in the way that is everlasting.
your mercy. into the blessed rest of everlasting peace, and into the glorious company of the saints in light. amen. >> on this day, may the peace of god, which surpasses all understanding keep your hearts and minds in the knowledge and love of god and of his son, jesus christ, our lord. the blessing of god almighty, the father, the son, and the holy spirit, be with you, and remain with you, forever. amen. ♪ ♪
♪ >> the funeral service for dorothy height from washington national cathedral, a memorial service held in washington last night. we will show that to you in its entirety tomorrow night in our prime time here on c-span2. president obama and michelle return to the white house this morning. the president delivers remarks at an event honoring the 2010 national teacher of the year. we will have that live on our companion network, c-span3.
vice president joe biden's wife and secretary arne duncan will also attend. the u.s. senate gabbling shortly and about 40 minutes or so. to party leaders came to an agreement yesterday to allow debate to begin on the bill. speeches are expected throughout the day with amendments possible. live coverage here on c-span2. live coverage of an event marking the 20th anniversary of emily's list, a political group founded with the mission of collecting democratic women candidates who favor abortion rights. the emily's list if it will get underway at 12:15 p.m. speakers include house speaker nancy pelosi. that will be live on c-span3. this afternoon the third and final debate in the british parliamentary elections. the topic, economic affairs.
each of them fight to become the next prime minister. i will be live at 3:30 p.m. eastern on our network companion, c-span this afternoon. the senate is coming back in at 12:15 p.m. eastern and we're going to take you back to the national chedr. we have our video feedback for more of a look of the funeral of dorothy height.
>> the majority leader the democrats still expect a conference on wall street legislation if and when it passes the senate. passes the senate. he said this morning in an interview on cnbc we have brad sherman of the financial services committee wanting to talk about financial regulation. we will show you as much of that as we can at 12:15 eastern.
>> as i mentioned member of the financial services committee and house of representatives. what all the action has been in the senate this week, it looks like you might have a vehicle for to move forward as the senate works for the processor. what's it been like watching both the hearings this week and also the filibuster and that move forward with the senate? >> guest: it's been an interesting show. it always provides a share of entertainment. and i've been involved, as a democrat, to make sure that we don't see bailouts in the senate bill. and security, the change that expect to see in the manager's amendment, that will prevent the bill from allowing the fdic to make unlimited loans, take unlimited loans from the treasury and use those to bail out the creditors of financial
institutions that have gone belly up. so i do think that, and i'm not sure this was intentional, but if the original set of bill, there was a bailout avenue for the executive branch to use. and i think that's going to be controlled. >> host: this is the point of contention for the creation of a bank sponsored fund that would be used for bailouts? >> guest: there are two separate issues. bail outs and taxpayer pay for bailouts. and my focus is on don't have the taxpayers pay for the bailouts. and 50 billion was going to be collected from wall street. my guess is that will be out of the bill, although we will see. but my concern was that in addition to whatever they collect from wall street, it will be years before they collect any portion of the 50 billion, or much of that 50 billion, that the fdic could you bailouts with its unlimited credit line from the treasury. that's what we want to stop.
>> host: did that change the debate? >> guest: may be. i think it was just more straw on the c.a.m.e.l.s. back. >> host: as time has progressed, have you develop any more clarity around the right prescription needed? or do you feel as you start at the outset, what you're working on is still there? >> guest: i think the house bill is a good bill. what we need is controls of derivatives and higher capital requirements and certain protection. and while we do need an orderly way to wind down the defunct financial institutions, we out to do that without the taxpayers bailing out the counterparties and the creditors. and we should take note that as we saw in late 2008, the executive branch is all too anxious, or all too willing, to do the bailouts of creditors and counterparties. you know, the vote was close on
t.a.r.p. in the house. it went one way and then the other way. but in the mind of the executive branch in 2008, it was 435-zero vote. to have $700 billion worth of bailouts. so i think that we've got to tell wall street that taxpayer money is not available unless they can convince the house of representatives and the senate to provide money in the future. i think that's pretty unlikely to. >> host: on the derivatives exchange this week a letter was released by many dozens of organizations, non-bank organizations, agricultural copies and ally, suggesting that derivatives legislation would impede their ability to hedge their own commodities. would you talk about that and whether not you think it would have economic impact if, in fact, these companies couldn't trade derivatives on cattle futures or corn or whatever. >> guest: we're certainly going
to have derivatives. they will be exchanged traded, or clearing house cleared derivatives. if that isn't exactly the way certain companies have done business in the past, it is a fine way for them to do business in the future. with transparency, and more importantly with capital posted so when you buy a derivative, you know you're going to get paid by the person who sold you the derivatives come and certainly not by the taxpayers of the united states. >> host: we'll have a half hour with you so we want to get to call. fort worth, texas, joe, republican line. >> caller: good morning and good morning representative sherman. i had a couple of quick question. i was watching on c-span a while back representative alan grayson was questioning ben bernanke about some of the money that was being loaned out by the fed, and bernanke was not answering the questions as far as who is receiving the money. why is it -- or i guess at least
my main question, which is why is it that the end of -- beg your pardon, the on the fed bill has not been passed? what is the status of the bill? it is your committee that is responsible for reviewing it. thank you. >> guest: well, alan grayson and ron paul and i have all believed in auditing the fed. that does not mean that we are going to take away the fed's independence when it comes to setting monetary policy and short-term interest rates. the fed of course would have preferred to operate without oversight, and without audit. i believe that we were successful in getting that provision into the house bill. i think it will be very hard to convince senators to go along with it. in general, the fed is a powerful institution with a lot
of friends in the administration. may be probably more friends in the senate and house. that doesn't mean i'm not a friend of the fed, it's just i'm not a friend of secrecy. >> host: the house financial services subcommittee is having here is to date at 10 a.m. i believe we have cameras there, which waste of our topics. the one we talk about here this morning and also earlier a discussion on greece. it is titled credit default swaps on government debt, potential applications of the greece debt crisis. >> guest: certainly the role that financial institutions played with greece, lending them more money than they could afford to pay, and then engaging in some transactions. it's my understanding that greece has already sold its airport tax for decades into the future. that will in effect borrow money. we didn't borrow money, it's
just this revenue stream is not going to our creditors. those kinds of transactions show how much trouble greece was getting itself into. and obviously, somebody had turned the spigot off on greece a few years ago. made in less of a whole today and the world economy would be in less of a whole. so i do think that currency traders and investment banks have played a role here. and what we want is a system in which not only do we want transparency in our banks want transparency and the national government's. >> host: how would the legislation consider prevent this from happening this in the united states? >> guest: i don't think we're at the stage of crafting legislation. we are just adding the problem. this world financial circumstances is giving us problems more quickly than we can come up with solutions to.
>> host: west palm, florida. jeffrey, independent line, good morning. >> caller: good morning. i'm looking at the bailout, it does get my mood. i don't think that goes from risky behavior by being traitors. to me, it has to be reality in order to hedge that risky behavior. and if money is available i just don't see how even though it's not taxpayer funds, per se, taxpayers will link to pay for our five keys on the banks. so am hoping that does get renewed. also the root cause of the financial problem, is that going to be addressed as well, fannie and freddie come as well as the capital leveraging of the investment bank? >> guest: i think we're going to be dealing with the root causes, but i think it will be that economists will be arguing a decade from now as to what all the causes we were.
we know what some of them were and we are dealing with them. as to the possibility of bailouts, i will say this, for all dress of the senate and house bill, that this fund would be available only if the management is removed, the shareholders are wiped out. so it's not a bailout of the defunct financial institution. that being said, i agree with you. we don't want to see bailouts of the creditors and counterparties. these are the folks who are stuffing money into the suit of the high wire gymnast, circus performer, and in doing so thinking that there's going to be a safety net. we don't want to much money invested in high wire acts. oue $50 billion as you pointed