tv Treasury Secretary Testifies on State of International Finance System CSPAN July 29, 2017 11:39am-2:44pm EDT
eastern on c-span's q&a. sunday and at afterwards, connecticut democratic congresswoman rosa delauro talks about her efforts to cut social programs in her book "the least among us." -- whensocial security social security reaches lowest point, we had ronald reagan and tip o'neill who came together, enacted, and congress acted to make social security solvent. ringing of hands about social security and being insolvent can be solved immediately by lifting the gap. >> much afterward sunday night -- watch afterward sunday night. next, testimony from treasury secretary steven mnuchin on the
u.s. debt limit, tax reform, and liquidity requirements for community banks. he also discusses possible provisions to deter currency manipulation and future u.s. trade deals. held by the house financial services committee, this is three hours. >> the committee will come to >> the committee will come to order. the chairs authorized to declare recess of the committee at any time.
members will have five legislative days in which to submit extraneous materials to the chair for inclusion the record. the hearings for the purpose of receiving the secretary of treasury's annual report on the state of the international finance system. but before proceeding to that report, i will give you a report on the hollingsworth family of indiana. would like to share with you some bury good news. hollingsworthbert the fourth arrived this morning at 1:38 a.m., weighing in at seven pounds, 15 ounces, mother and baby are doing well. husband and father is a total wreck, but congratulations to our colleague, ray collings but congratulations to our college, ray hollingsworth. [applause] an excusede him
absence from this morning's hearing. -- i now recognizes recognize myself for the three minutes to give an opening statement. secretary steven mnuchin -- the system clearly needs improvement. president trump as outlined a bold forward-looking plan to tackle the serious problems facing hard working american families who have seen their paychecks that mate, their savings shrink, and their dreams diminished over the last decade. the fact is this economy is not close to reaching its potential. after theht years last recession ended, americans remained stuck in a flawless recovery in generations. economy grew at a measly 1.6% last year when our historic norm is twice that. over 300,000 manufacturing jobs
have disappeared over the last eight years. obamanomeight years of ics has taken a toll. it has taken a toll on our capital markets. we simply cannot afford to lose our status as the global leader for capital markets. yet, the united states has dropped to 17 in a recent world ranking of economic freedom. the stork will for our nation. based upon levels of business freedom, investment freedom, and financial freedom. from u.s. economic freedom has declined, economic freedom for a number of international competitors has actually grown. i have faith in the u.s. capital markets and in the spirit of to take entrepreneurs necessary risk in growth, but to do so, the unaccountable washington bureaucracy must finally be held accountable. we must address the regulatory costs of doing business in the u.s. under. frank. a little work
plaintiff for american companies to prosper, and as a result, our economy will grow healthier for all. for these reasons, the president's executive order establishing the core principles of regulating u.s. financial systems is important to us all. long, we have not empowered americans to make independent, financial decisions and informed choices in the marketplace. save for retirement, or bill individual wealth -- or build individual wealth. we have not enabled american companies to become -- and domestic and foreign markets. the secretary, your first report issued last month closely mirrors the key foundational principles and policies that are contained within the house. from helping bank allowed to detailing credit banks and unions, you will help craft a less burdensome, healthy
repertory system. the actions that you and the demonstration are taking to ensure the competitiveness of the u.s. financial system are a welcome change, and one that i fully support. thank you for being here, and the committee looks for to working with you. i now yield four minutes to the ranking member for an opening statement. >> welcome, secretary mnuchin. secretary of the treasury, you have a wide range of responsibilities that are of great horns to our economy -- that are of great importance to our economy and american people. these range from secret our financial system to advancing u.s. values internationally. one bureau within the treasury responsible for safeguarding our financial system is the financial crimes enforcement network. andh as you know, collects
analyzes and disseminates financial intelligence, in addition to suspicious activity reports, foreign bank reports and other reports. they have numerous information sharing arrangements with foreign financial intelligence units, making the bureau will curbioned to identify and illicit activity. it is critical to the american public to know the extent to which the president, his family, and is associates colluded with russia for the 2016 election. questions have been raised about the involvement with russia. as a committee of jurisdiction over treasury, we too have our own share of questions.
importantly, u.s. secretary of the treasury are well-positioned to assist this committee in fulfilling its oversight responsibilities and assessing president trump's financial entanglements with russia. however, even though you have indicated i think i'm more -- indicated on more than one occasion, you do take requests from members of congress seriously. you do not respond to a letter from me or my colleagues requesting copies of all pertinent and financial records related to president trump's financial transactions, business ties to russia. your staff did call yesterday afternoon while you are preparing for this hearing. i am looking forward to hearing directly from you about this matter today. there are also other areas where i have serious concerns.
in june, the treasury released a report with recommendations that largely mirror -- you recommended cutting the consumer financial protection bureau and rolling back important. frank reform, including rules in place to ensure the stability of our financial system with stress test and living wills. these recommendations are deeply harmful and shortsighted, given the progress we have made since the financial crisis. i also --i remain concerned about the practices that took place at one west under your leadership, even though one west foreclosed over 36,000 families in california. and that has been the subject of numerous investigations. this president has selected numerous one west officials, including you, to fill government posts. for example, joseph, a former
one west executive, has been nominated by trump to leave the office of the comptroller of the currency, which regulates the largest banks. many democrats are concerned about the potential in a complex and interest with regard to a recent department of justice settlement with one west and any pending investigation into one west for wrongdoing that occurred during your tenure. so, i look for to hearing from you, and what you have to share with us today, and i yield back the balance of my time. >> the chair now recognizes the gentleman from kentucky, mr. borage, chairman of our subcommittee for two minutes. newton, thank you for your service and welcome to your first hearing on the state of the international financial system. , which has jurisdiction over international financial institutions, sanctions and monetary policy, you are off to a great start.
two days ago, this many passed a bill that would empower treasury to encourage much-needed reforms to the world bank's international association, and reduce a level by $580 million. i think your staff are working so effectively on this legislation. we also looking for to the positive impact that you can have at the financial stability oversight council. i would urge you and your capacity as lead member, to assess the extent to which unconventional monetary policy and the fed's $4.5 billion balance sheet distorts economic decisions, and constrain american households and businesses from enjoying a faster and more complete recovery. as dallas fed president kaplan recently wrote, there is a cost to excessive accommodation in terms of limiting returns, as well as print distortions and imbalances in investing, hiring,
and other business decisions. monetary policy accommodation is not costless. perhaps, the greatest threat that we face of the threats from terrorism around the world, and i hope to continue to work with you on key proposals that would help thwart terrorism. i want to applaud to work in the june treasury report and his call for much-needed migratory relief for community financial institutions. according to a recent estimate, these reforms you proposed to allow firms to lend up to $2 trillion in the real economy, which would create opportunities for americans in all walks of life. again, thank you, and i look for to your testimony. i yield back. recognizes thew woman from wisconsin. >> thank you very much.
i know i would feel a lot better, mr. secretary, if you support a strong, independent protection bureau, especially given your reputation as a foreclosure king. i'm disappointed that you and the trump administration supported repeal of the extracted industry disclosures of the dodd-frank 1504, and treasury is just behind the crooked deal with russia, while now secretary tillerson was the ceo. officials thatom section 1502, conflict mineral provisions are working fine. i am hoping that you will support 1502. i am in their nice, sweet person and i hope to get today, but trust me, i'm going to fight you to the end. to keep that in place. [laughter] i look for to your testimony. >> the lady yields back. today, we will welcome the testimony of the honorable steven mnuchin.
since this is a new administration, and the first time we have had a cabinet-level official testify before our committee, i thought it would be prudent to review the committee and house rules on the quorum. members are required under the rules of the house to observe the principles and courtesies and debates set forth. divisions,t related by speaking and acting respectfully and by refraining from the use of disorderly words for on parliament tree language, which includes intruding motives, charging falsehoods, or implying a lack of intelligence. i would also at that over the last two years, my colleagues on the other side of the aisle have expanded upon these principles on the record, to say that no administration could be quote-unquote badgered, or "ubject to "i got you
politics. and no administration witness should be "talk to badly." no one should be interrupted. every witness should be treated fairly. every administration witness has the right to be able to respond. my democratic colleagues have opined that every administration witness should be treated with dignity, propriety, courtesy, and decorum. inquiryntary --parliament tree inquiry. >> will this witness be sworn in? custom to swear in administration witnesses. it is not our intent. >> mr. chairman, since you took time to talk about how we should
conduct ourselves today, i would like to remind you and your colleagues how you treated mr. ray, and i never heard you take time out to say a member should conduct themselves. so, while we have not done some things in the past, and you are doing it now, i would like to make sure that i understand that you do not wish to swear in this witness? i believe in my tenure that we have sworn in one witness, and we have never required the obama demonstration officials to be sworn in. it is not my intention to swear in this witness. profitimply by intent to from the minority's advice on decorum. >> thank you vary much, mr. chairman. >> the book on the testimony of the honorable steven mnuchin. this is the first time he has appeared before our immediate ridiculous one is -- before our
committee. secretary mnuchin was born and raised in new york city and holds a bachelors degree from young university. ofretary has several decades retail and investment banking in paris, which he brings to the office in which he now holds. without objection, the witness." written statement will be made part of the record. welcome for your first appearance before our committee and you are not recognized for five and is to give an oral presentation of your testimony. sec. mnuchin: thank you very .uch members of the committee, i am pleased to be her today and a look for to discussing the important issues to the american people. i would like to begin by addressing treasury's report. uses its leadership rolling in international financial institutions to help
ensure that they are carrying out there do core mandates effectively --carrying out their core mandates effectively. as a federal government in streamlining, treasury is focused on keeping the international financial institutions as cost-effective as possible. we have pressed the imf to increase its focus on the need to address global, economic imbalances. this will help to improve prospects the u.s. jobs and exports, while holding the imf's administrative budget largely flat in real terms. in addition, u.s. support of multilateral a development banks, employ their balance sheets, have made it possible for us to substantially increase the assistance that they can provide to the world's poorest countries, while reducing u.s. budgetary contributions. where it makes sense, we will preserve these investments and remain a top donor and shareholder, while also
balancing priorities across other parts of the government. in doing so, we will continue to promote access to economic opportunities to eliminate poverty, and to build shared prosperity. when the world is prosperous and stable, america weeps the benefits. i would like to now highlight the domestic reform agenda. let me begin by congratulating the committee on its passage of the choice act. supportedstrations this legislation, and we will work with congress to reform the financial military system. -- financial, regulatory system. this has given us time to see what has worked and what has not. is committedation to robust, financial system with a free flow of credit that fuels the engine of american growth.
this means allowing community financial institutions to land, and small businesses access to borrowing. theeans giving americans opportunity to make independent, financial decisions, such as buying a home, and saving for retirement. this also means preventing taxpayer bailouts. in theory, the president issued an executive order that directed the department of the treasury to report on whether financial regulations were in line with >> in june treasury released the first in a series of reports and response to this executive order. our first report dealt with banks and credit unions. this provides a roadmap to better align the financial andem to serve consumers businesses and drive economic growth and while the report focused heavily on regulatory actions that can be taken by the
executive branch, it also included a number of legislative recommendations to more appropriately align the laws governing depository institutions with the president's core financial principles. one of these is properly tailoring capital requirements for small, midsize, and regional banks that pose little or no risk to the financial system. it included, the endorsement of a regulatory off around of a highly capitalized institution. another recommendation is structural reform to provide a mechanism to identify a single regulator to ensure that there is not unneeded overlap or duplicated efforts. a third is a legislative remedy to the overly complex oper rule. statutory changes to make the bureau more accountable. working together we can
implement both regulatory reforms and legislative remedies , particularly for the benefit of community banks and midsized institutions. housing finance reform is also a priority of the treasury and the administration. the current system in which gse agency in perpetual conservatorship is not sustainable and leaves taxpayers at risk. our housing finance policy should be clear and should be designed to provide financing for homeowners and owners of multifamily units. additionally policy should increase private sector participation and protect taxpayers. component istical comprehensive tax reform. we are gone too long without addressing our tax system. our business rate is one of the highest and complicated in the world. lesskes our businesses competitive and we are committed to change that. lowering the rate and bringing back billions of dollars that
are sitting overseas will allow business to invest in this country, spurring economic growth. ofther important component strong and robust international financial systems are stopping bad actors and those who finance them. i would like to a knowledge this committee's effort to combat terrorism and illicit finance with the creation of its newest subcommittee. as our enemies change so too must our weapons to combat them. , isping the flow of funds one more tool in our arsenal to disrupt their capabilities. of terrorism and financial intelligence is ready to work with this committee and i am personally looking forward to working with chairman pierce on this critical issue. we have a chance to create historic opportunities for american people and i look or to working with you. thank you. minutes forfive questions. mr. secretary, you are probably
familiar with the federal dealingreport of 2016 with the rule that concluded "the l liquidity of stressed bonds increased after the rule." the directorthat of the imf monetary capital markets department provided another critique of the rule saying it could impact the ability of institutions to supply credit. we have a recent study conducted saying ink of england their stress simulation that material increase in spreads and corporate bond markets and in the extreme, corporate bond markets dislocation can threaten the stability of financial markets. of fsoc,rly as head what are your current concerns on the state of bond market liquidity in general and what are your views on the rule specifically?
you very muchhank for that question. let me acknowledge, hopefully i will get out before the debt clock goes to $20 trillion. as relates to your question about the role, i share your concern. the biggest problem with the rule is its complexity and regulatory overlap. even if it is our intent to not have proprietary -- trading within banks, we need to make sure that banks understand how the regulation works. recently i was at a g20 meeting economistsd some that talk to us and said that every trading desk needs a psychiatrist and lawyer to rule.ine how to apply the
this is one of the issues i'm working on. i am pleased to report that we are working on it. the regulators also share these concerns and we have it on our agenda tomorrow for the meeting and will be addressing how we can deal with the regulatory overlap. in ourirman as you know report on the executive order to the president, we are made certain suggestions for legislative changes to that. mr. secretary, particularly those on this side of the aisle, we very much deplore what is happening to our community banks and credit unions. i know there are some on the other side of the aisle that have opined that there is no regulatory problem there. in your report and your testimony today you mention the term, tailoring. can you expound upon your views and what are you considering
that you can do in the administration to better tailor rules to our community banks and credit unions? mr. mnuchin: mr. chairman, thank you for that question. let me first say that we are very focused on making sure that community and regional banks can properly grow. topfinancial system, the banks that account for 50% of the assets in the american financial market, that is quite problematic. what we want to do is make sure there is robust lending, particularly in community banks. , met with many many people these are not republicans or democrats, these are hard-working business people, particularly in agricultural communities, in small manufacturing communities, that constantly complain that the community banks are not able to lend because they are
overburdened by regulatory issues. i firmly believe that community banks know how to make loans. they should be properly regulated whether they are regulated by the state or the federal government. i do believe in proper regulation. regulations some that community banks cannot drive is not something that is good for any of us or the american economy. we are very focused on raising the regulatory burden and we look forward to working with this committee on it. of the regulatory burden on the regional banks, the treasury report recommended raising the asset threshold for of enhancedion credential standards to a bank holding company, raising it from its current tea 50 billion dollar threshold to a unspecified amount -- from the $50 billion amount to an unspecified amount.
do you believe the threshold should be increased to and do we have your commitment that you will implement these changes administratively? mr. chairman, let me first say that my understanding is that there has been bipartisan discussions on raising this limit in the previous administration. so i would hope that those conversations continue. and that this is something we could accomplish quickly. i think it should be raised substantially. -- at least $250 billion. i would go further and saying that simple on compliments -- simple banks should be able to raise above that. that does not mean those banks will not be regulated, they will be regulated. they will be regulated by the primary regulator and properly. >> my time is expired and i yield five minutes to the ranking member.
i want to make sure that we are all operating here on the same understanding. even though you're not sworn in do you realize you are under oath? mr. mnuchin: i do. the letter iare of sent you on may 23 at along with my colleagues. mr. mnuchin: yes i am. >> do you understand that this committee has the responsibility to oversee the financial crimes enforcement network? mr. mnuchin: yes. >> given that the treasury maintains these types of records and given your department statements that the agency takes congressional to requests very seriously and is committed to providing useful to appropriate responses congressional members is there
some reason why i did not get a response to the letter that i sent on may 23? mr. mnuchin: ranking member waters, let me thank you for your service to california, being a resident of california. i appreciate -- >> i do not want to take my time on how great i am. mr. mnuchin: we are doing our -- >> reclaiming our time. , thankjust say to you you for your compliments about how great i am but i do not want to waste my time on me. i want to know about the may 23 letter -- you know about it, why did you not respond to me and my colleagues? mr. mnuchin: i was going to answer that. >> go straight to that. mr. mnuchin: mr. chairman, i thought when you read the rules you would knowledge that i would not be interrupted and that i
would have -- >> reclaiming my time. what he failed to tell you was that when you are on my time i can reclaim it. i'm reclaiming my time. would you please respond to the question of why i did not get a response, me and my colleagues to the may 23 letter? mr. mnuchin: i was going to tell you. >> just tell me. letmnuchin: first of all, me say that the department of treasury has cooperated extensively with the senate intelligence committee, -- >> reclaiming my time. >> the time belongs to the gentlelady from california. perhaps mr. chairman i do not understand the rules. >> reclaiming my time. would you please explain the rules and do not take that away from my time. >> we will give the gentlelady adequate time so -- what i read mr. secretary were statements of
the ranking member in democratic -- and democratic colleagues on how administration witnesses should be treated, not necessarily the way they will be treated. the time belongs to the gentlelady from california but i assure you that majority members will allow you to answer the question when it is our time. mr. mnuchin: what i was saying is that we have provided substantial information, we believe there is significant overlap and i would say that we spoke to your chief oversight council yesterday. we are trying to coordinate with you. the response -- we suggested you get the info to the other committees but i would like to emphasize that we believe we have been very -- >> reclaiming my time. thank you very much. you left a message yesterday. you did not respond. let us keep going. identifies specific
activity related to money laundering or sanction violations by the trump organization involving russian persons would such a bank have a legal obligation to report? mr. mnuchin: can you repeat the question please? a bank identifies suspicious activity related to potential money laundering or sanctions violations by the trump organization involving russian persons, would such a bank have a legal obligation to report it? if a u.s.n: yes, institution had any suspicious activity they would be required to file. if they receive reports of suspicious activity involving potential violations of money laundering or sanctions involving president trump, his immediate family and associates, --h a immediately share it
would they immediately share it with the justice department or other interested law enforcement officials or would you generally wait until you received a request from law enforcement for this type of information? mr. mnuchin: i cannot comment on specific actions but i can assure you that they would respond to any issues no different than anyone else. >> the question is whether or -- would you generally wait until you receive your request for this type of information? mr. mnuchin: they would respond to those situations know differently. >> if it was widely reported in
the press that a close advisor of the president was being investigated for money laundering using anonymous companies and bank accounts youred in cyprus, would department actively seek to obtain relative information from foreign financial intelligence units where such act activity reportedly took place or would you wait until a specific law enforcement request came in? mr. mnuchin: i will not comment on hypothetical situations. they would handle these situations no different than any other situation. request to ask i for an additional five minutes. >> gentlelady is granted a additional five minutes. ,'m not asking for specificity i am asking for generally the -- you would answer these handle these questions. have any treasury department
employs expressed concern to you or are you aware of concern among treasury staff about the relationship between president trump and russia? mr. mnuchin: no. no one has expressed those concerns to me. >> given that you are finance advisor to the trump campaign, which was accused of accepting contributions from a foreign country have you recused yourself from any work related to russia or other foreign countries? aware ofin: i'm not those accusations that the campaign has taken those types thosepetition visions -- types of contributions nor have i recused myself as i believe i have no conflicts. >> in a recent review, president trump made it clear that he considered any investigation by robert mueller, and the president's personal finances, a redline that should not be crossed. have you hadchin,
any conversation with the president or any official at the white house in which it was directly stated or implied that supporting any investigation into trump's finances would in some way be crossing a line? mr. mnuchin: can you repeat the last part. i heard the first part. >> in a recent review president trump made it clear that he considered any investigation by robert mueller into the president's personal finances a redline that should not be crossed. have you had any conversations with the president or any officials at the white house in which it was directly stated or implied that supporting any investigation into trump's finances would in some way be crossing a line? mr. mnuchin: no i have it did no conversations along those lines. quite the contrary. evaluating the sale of u.s.
businesses to foreign entities to determine whether such sales undermine our national security -- given the significant pressure, president trump has exerted over government officials with key oversight responsibilities from sally eight two james comey to robert mueller to jeff sessions, how can we be sure that you and your own oversight, will appropriately review the sale of assets or property to foreign entities by top administration officials -- this includes for example, reviews involving the sale of assets by the white house, communications director, anthony scaramucci, and the president's son-in-law and advisor jared kushner, can you assure us that you would recommend blocking such a sale in the event that it indicates the foreign entity may seek to unduly influence u.s. policy
even if doing so made jeopardize your position as secretary? take my position very seriously. i've not had anyone in any way try to influence the in that position nor would i let them. i would use my judgment as i have to take the seriousness of that responsibility. it, you havestand such a matter under consideration, relative to mr. scaramucci and the sale of a huge property to a chinese interest, is that correct? mr. mnuchin: ranking member waters, as i think you are aware, all actions of that are confidential and it would be inappropriate for me to comment one way or another on any potential transaction and even acknowledge whether any transaction is being reviewed in this public format. >> is it true that mr. scaramucci was considered for a
position in the administration but because of this questionable sale, he could not go forward for fear of not being confirmed but yet he is now in the this inration -- does any way influence your decision that you have to make about that sale? mr. mnuchin: i want to ignore that i am not commenting about any potential decision that i would make about a confidential item but i will say that i have not been aware that he was ever for aered for a visit -- position that required confirmation within the administration. i thank you very much and now yield back. the gentleman from kentucky. for five minutes. >> thank you mr. chairman. secretary mnuchin, welcome to our committee. over 20 of my colleagues and i
sent you a letter last week ongoing with the economic dialogue about china to ask you to address market access issues for u.s. financial firms particularly lifting the equity caps that are currently in place. as you know insurance companies base significant barriers in in china while chinese banks have little if any barriers in the u.s.. i want to thank you for your response to this letter and your commitment to continue to press for the removal of these and other restrictions that unfairly disadvantage of american firms. what are the next depth that you plan to take to help lift these for inequity cap caps that harm american companies operating in china? mr. mnuchin: let me first comment -- i have had the opportunity to meet with president trump and president xi jinping two times once in mar-a-lago and the other in hamburg.
opportunity, we just finished our comprehensive economic dialogue. think you are aware, president trump is very focused having a more balanced economic relationship with china that theade it clear current trade balance is unacceptable. i think you may have seen in our press release from the comprehensive economic dialogue last week that china acknowledged that it is a shared goal to fix the trade deficit. i think as you know the united states has a significant competitive advantage in financial services -- services in general. it is one of the areas where we have a trade surplus. with china. i think it is extremely unfair that chinese companies subject to security reviews can buy 100% of any company in the united dates, yet as -- in united states, yet as you have said we are limited in china to minority
partners. apple has been forced recently to share their icloud business, one of the key parts of their business, with a chinese joined venture partner. that is not fair. it does not make sense. this administration is fully committed to making sure that american companies and american workers are on a level playing field. >> thank you. i will move on. i appreciate your commitment to working with congress to address that inequity in our relations with china. the respect to iran air and efforts the treasury is engaged in with the implementation of jcpoa, in way, -- the financing sales, despite the fact that the services only spell out warranty, maintenance
and repair services and safety related inspections. the treasury department as we understand it currently authorizes u.s. banks to finance the sale of aircraft to iran air. in a committee hearing in april, this committee we learned that this airline, iran air flew 114 flights from iran to syria between the implementation date and january sunny 16 -- january 2016 -- likely is an airlift in support of atrocities. can you certify to us today that iran air has ceased all sanctionable activities and if not, will the department redesignate this airline, an action the treasury has admitted is allowed under the jcpoa? specifically on iran air, and this public format i do not want to comment on them specifically. we have intelligence information
that i would be prepared to share with you in a private setting. what i would say is that, opec is responsible for granting , theses for aircraft's boeing sale as well as the airbus sales will require additional licensing and that is is part of the national security review of the jcpoa. your predecessor thought regulations for risk retention and the layers of capital requirements could contribute to a liquidity and undermine our financial system and destabilize it. he denied it. a market chukchi issue. do you agree or disagree with your predecessor? mr. mnuchin: i have a lot of respect for him. i have first-hand experience in trading and investment markets. i absolutely agree with you that the volcker rule in particular
has eliminated liquidity and in times of crisis we need market makers to provide liquidity, not proprietary trading liquidity for market making and that is something we are focused on fixing. >> yield. totime is expired according the earlier memorandum. the chair now recognizes the gentleman from new mexico. mr. pierce, chairman of terrorism and illicit finance subcommittee. >> thank you for being here today. before getting into my observations i would point out that my friend from california, and i do consider her to be a friend, her questions were edging towards things that would be a violation of the bsa. that fensin has is available to agency but to
release that publicly reveals that the process which is looks tonarily -- it be very close to a violation of the actual law itself. i appreciate your willingness to hold the position there because it is a very delicate balance. know that aml and cft are real threats. what i appreciate about your report mr. secretary is that you do not -- even with these major threats in the nation, you don't lose sight of the mission -- on page two way you talk about the robust financial system and free flow of credit -- that flew -- that fuels the engine of america. small businesses getting access to credit. at the end of the day that is what you are here for and that is what we are here for. so i appreciate the threads that you are not losing sight of what
makes this country work. thank you for that attention to detail as you approach her job. ac works with congress and the president and the military to see the world's bad actors don't -- their major activity is shutting off funds and we can see with north korea and iran that we have significantly affected that area --. also the financial activities task force has evaluated that as soon as you find a way to stop one action than another action steps up. my question is, how do we modernize, update our ams cell, .ft standards ic technology is having to be in a constant robust movement. tell me from your perspective on
that aspect of how we keep ahead of threats? mr. mnuchin: i doing knowledge or concerns in this area. my number one focus is on economic growth and we are focused on tax reform is part of that but my number to focus, 50% of my time, on sanctions related and terrorist finance related issues. using technology to stay ahead of these things is very important. we will continue to use old tools and new tools. a terroristet up financing unit with saudi arabia and the gulf where we have people there firsthand working with them and working with our arab partners. i firmly believe that cutting off the money works. it worked with iran, it brought them to the table. it works in stopping terrorist activity. i constantly work with secretary
tillerson and secretary mattis, and director pompeo, general mcmaster, on a unified approach to stopping terrorism. >> what can we do more here, in other words the subcommittee that contemplates your mission if weat -- what we need need resources in a specific area, please share that with me? moneyuchin: we need more for terrorist financing centers in saudi arabia. we will talk about that later. mr. secretary you had wanted to make responses earlier to some of the questions, i would yield the rest of my time to you to make those answers if you would like to go into depth where you weren't allowed to before. mr. mnuchin: i was really going to thank the ranking member for her activity in support of regional banking in california and that i had the opportunity to meet with her many times and -- i appreciated her
work in california. that was the extent of my opening remarks. >> again, i think for my thepective, if you can get tax reform that you mentioned and keep the focus on the small businesses, they are the engine of the economy of the u.s. getting access to credit, those of the major things, then we , the financing of terrorism, we have a big job and i believe you're up to it. thank you for being her. mr. mnuchin: i appreciate that. chair now recognizes the gentlelady from new york. thank you mr. chairman and welcome mr. secretary. abouteeply concerned terrorism financing. ,uring her confirmation hearing you stated and i quote "i agree that law enforcement anti-money
laundering efforts face serious challenges if they are unable to determine the beneficial ownership of the various companies and entities that utilize the u.s. financial system. ,t can be a real vulnerability various bad actors including terrorists and criminals can then you later stated that if confirmed you would "be willing to work with congress and the various equities impacted by due diligence requirements to address this challenge." we have on this committee introduced a bipartisan bill called the corporate transparency act that would require companies to disclose their true beneficial owners at the time the company is formed. bes information would only available to law enforcement and financial institutions that are required to know their customers
with their consent. our bill says that states can collect this information but if they do not been it would be the treasury's responsibility to collect it as a backup. my question is, do you support requiring companies to disclose their true beneficial owners at the time the company is formed and the suggested legislation? mr. mnuchin: let me first say, thank you very much for that. i now understand this issue much better than i did. when it was my initial confirmation. i spent a lot of time looking at this internally and it is also a concern at the g7. this is not just a u.s. issue but our european partners are concerned as they make progress in this area and we don't. let me first say, i am very much looking forward to working with you and the committee on a solution to this. i think this can be a part -- a
bipartisan solution. it is a complicated issue. we need the information when companies are set up but we need to figure out a way of how that is maintained overall. if we capture the information on day one and it is literally the ownership has moved one hour is not very effective. i am concerned about treasury perhaps being the ultimate depository because i think states are not going to want this responsibility but we look forward to working with you on a solution. >> i think it is critical. we have numerous llc's that no one knows who owns them. this issue came to us from law enforcement. wallg they keep hitting a in trying to know. we certainly, if we know who owns things in our country, that is a step towards combating terrorism financing which is a huge concern to the city of new
york and our entire country. i would also like to ask about the debt ceiling which will need to be raised soon and i hope it can be done without the usual political drama. to be worriedmed about the ceiling not being raised in time and it has already substantially raise the cost of short-term borrowing in treasuries. treasury is also expected to reduce its issuance of short-term treasuries this fall in order to stay below the debt limit at a time when the supply of short-term treasuries is already low, the cause of the shift toward government money market funds -- my question is, do you agree that the uncertainty over when and whether the debt limit will be raised is causing distortions in the market and is impacting treasury's ability to borrow at the lowest possible rate? mr. mnuchin: well, let me say that i assure you i am very focused on the debt limit.
as i've said before. i urged congress to work on this before anyone leaves. i said yesterday in my testimony and i will be alerting congress that my previous letter on special powers will be extended through september -- >> my time is almost up and i want to know, if treasury were to breach the debt limit and start prioritizing interest payments on the debt over the obligations like social security, du you think the markets would view this as a default? no intent oni have prioritizing. i think that doesn't make sense. the government should honor all of its obligations in the debt limit should be raised. time for the gentlelady has expired, the chair now recognizes the gentleman from missouri. chairman from the financial institution subcommittee. >> thank you. thank you for being here. i appreciate your comments to
date here. i also thank you for the treasury report you have done. it was a tremendous effort and i and you yielded great results. i want to follow-up, on what the chairman discussed with you as regards to basically banks and nonbanks that are systemically important financial institutions. the arbitrary nature of the process -- i'm still perplexed as to someone who deals with now, myd nonbanks, for discussion is focused on the bank holding company side. improvementtemic act, the bill removes the $50 billion threshold which the chairman discussed with you. a wells established set of standards that reflect systemic importance. -systemic risk indicator score which there is an analysis
time, that we can save money, and effort on everyone's part and use that systemic score. my initial question is, you made the comment and minute ago that you want to focus on community and regional banks. some of these regional banks are nothing but community banks. you know this. does it make sense to put an arbitrary figure in error do you think we need to go to more a risk taste analysis -- a risk-based's analysis? mr. mnuchin: we need a floor that is not subjective and above that the fed would have the ability based upon as you suggested the risk analysis. >> we will put a chart appear in a minute with regards to cyber security. i love this chart. i saw it ahead of time. i'm glad you could see it.
it reminded me of an old toy i had as a long -- a long time ago as a kid. secretary, you adjust this subject also in your treasury report and there was a word that was used in discussing this with the different agencies and banks when you talked about this -- harmonization. stop the duplicity and overlap of the regulators with regards to all the things they are having to work with here. onould ask you to comment , ather as chair of fsoc great position to bring agencies together to stop this overlap in duplicity, and take this regulatory nonsense and provide relief and would you like to comment on it? mr. mnuchin: it would look like modern art if i hadn't seen it in more detail. i share your concerns in both my , cyber security is
a major concern of mine and we are already working with the regulators on how to consolidate their resources. i'm all for the different regulators making but cyber security is one of our biggest risks and we should make sure that they consolidate the resources that they do it in a way that they don't have to do it four or five times independently with banks. >> some sort of standardization of guidelines and principles is a good place to start. when the regulators come and they are not having one group say this in another group say that, so the banks get a mixed message and they have to comply with different sets of rules and regulations. i think your position as chair is key to getting that harmonization. mr. mnuchin: i can assure you we are already working on it. >> thank you very much. one last question. operation chokepoint. this is something we have dealt with for a long time. i'm sure you are familiar with it.
doj and fdic they began to drive legally operating businesses out of the financial ortem because of political values that they believe didn't match up with their own. i'm quite concerned and to be honest, the fdic has backed off on this problem but it has continued with the occ. i would like your commitment to continue to working on something with us. i realize you will probably try to do your best to stop the nonsense but i am concerned that should you leave and there is another new administration down the road in four years, eight years, 10 years, whatever, that we have a set of guidelines in place to prohibit this activity from ever being able to be done again. would you help us along those lines? mr. mnuchin: absolutely. i look forward to working for you. >> the chair now recognizes the gentlelady from new york mrs. velazquez.
>> mr. secretary, former secretary -- the former secretary was incremental and providing puerto rico the necessary tools to comprehensively restructure its debt. prior to his departure, he personally indicated to you that it was important to continue monitoring the situation to ensure puerto rico's successful recovery. --recognize that even though the breathing room for the local policies and initiatives that will jumpstart the economy. year, amay, of this senator restated "extending bankruptcy authority alone could not fix the problem." however since the trump administration has taking command there has
been little to no conversation stemming from the department on puerto rico. what policy tools is your staff considering to assist puerto rico? mr. mnuchin: thank you for the question. first of all i share your concern on the financial situation and puerto rico. i can assure you that i personally spent a lot of time on it. me viewstary did give on it before he left. we do support the legislation. i can assure you i have a team that is working on it actively. it is a very complicated issue. i wish there was a simple solution. >> i know. 400,000 puerto ricans have left the island in the last 10 years. we have doctors leaving the island every day. i am happy in a sense that they are coming to florida and ohio. believe me. politically speaking, it will be good for them -- the democrats.
i want to give the option for the people of puerto rico to stay in puerto rico if they choose to. puerto rico is under the territorial clause -- it means it is a colony. the congress has the responsibility -- i want for you to commit yourself that you will guide your staff to look at the viable options including the use of exchanges and funds to help meet puerto rico's immediate needs. commitchin: i will not to use specific tools such as the exchange fund but i can commit to easily because i have already done this and will continue to do it, we are working very closely with lots of people on this. it is a very complicated issue. we are trying to balance what a solution would be that is appropriate. of the taskember
force on puerto rico. to promote economic growth and puerto rico. would you assign a staff or du have a staff that has been assigned to monitor the situation in puerto rico? mr. mnuchin: i do. and i am happy to follow up and have them meet with your staff. >> wonderful. in may, i wrote you a letter expressing concern regarding the administration's decision to eliminate program funding for the treasury department's see i program for fiscal year 2018. i'm encouraging you president trump to reconsider this decision. in june 2017, your own treasury that this is often the only source of credit and financial services and low income urban and rural communities.
how do you reconcile the finding on the report shortsighted decision of eliminating funding for the program? >> thank you for asking that. i had the opportunity to talk to the senate about the same issue. i do support the cdf i program. i think it has been effective. having said that we had to make difficult decisions in the context of the president's budget. , one,erall agenda was to get to a balanced budget and also to fund military expansion. this was a different prioritization decision we made within the department. i would also comment that is part of the financial report we did specifically recommend a review of the community reinvestment act and make sure that we meet with consumer advocates, community members to make sure that that money is being used properly and
communities, especially as we are forced to reduce other funding. >> i yield back. >> time is expired. the chair recognizes the gentleman from michigan, chairman of the capital markets subcommittee. secretary mnuchin, i appreciate you coming here and being in front of this committee and as tempting as it is, some others on the other side of the i'll want to talk about anything other than the economy and our international standing and it is tempting to talk about samantha power and susan rice illegally unmasking people or hillary clinton's illegal use of her emailer secretary of state or director comey illegally releasing classified documents or ukrainian meddling in our elections. i think it is a waste of time in this committee. i would like to move onto to a couple of other issues. to divide that time equally. celebrated,ve just not be the right word, the seventh anniversary of dodd frank.
we have seen this be a continual stumbling block to our recovery that we have been trying to get going in the united states. i'm wondering what do you view as the most urgent priority needed to address to restore confidence and create more op rigidities in our economy -- more opportunities in our economy -- and the effects of dodd frank and then i would like to move on? mr. mnuchin: sure. i would say, as part of. frank, our focus -- as part of god dodd frank,ank -- in terms of the qualified mortgages, making sure the banks make good mortgages. as you mentioned the volcker rule, that is a big concern of ours with what it does to liquidity and that we can have
of eliminatingng proprietary trading with managing liquidity. >> in your report you had laid out various items. is there anything specifically frank that you think as a committee we need to address? number one: the thing is probably to raise the limit as we have talked about. >> great. that is helpful. as it has been expressed by a few others, i believe the volcker rule is partially to blame for diminished liquidity in our markets. 932 is something that is with just under 300,000 words. this is not an easily digestible rule. that is war and peace frankly.
is five separate federal agencies and there. page 132 and 133 you have a chart, laying out a number of things, 19 different thing specifically that could be used for improving the volcker -- andd the chose act the choice act, we revoked that rule. you lay out eight suggestions for congress but there are 11 regulatory suggestions for providing immediate relief. that is from the federal reserve, the fdic, the occ, the sec, the alphabet soup of all these regulators. how quickly can we expect to see relief coming without the legislation necessarily backing -- that up from the regulators themselves? mr. mnuchin: as you have mentioned in your legislation you have repealing it and we don't object to that if that is what congress wants to do. i don't think the volcker rule
is what created the financial crisis, or the lack of it. we are very focused on how to fix it. these are active discussions at are talking to regulators about what we can get consensus to fix. >> we would like to work with you on that and encourage you -- again as we know, legislative fixes are challenging to get to but these are regulatory agencies that have immediate ability to flip the switch. we are hoping to do that. i want to moments touch on one other thing that chairman bar had talked about -- the iranian situation with aircraft exports. the former chair of that committee and the last term, i'm curious, have there been any other financial institutions be at u.s. or foreign institutions that have been in contact with treasury with respect to
aircraft exports to iran? mr. mnuchin: again, i cannot comment on the specifics that are confidential but i can assure you that we are on top of this. i my time has expired but look forward to continuing the conversation. thank you. >> time is expired. now recognizing the gentleman from california, mr. sherman, for five minutes read -- there it. >> people saying we should be nice to witnesses, you quoted, it is important to reflect that no comment about being nice to either democratic or republican witnesses ever came from me. [laughter] now i want to go through a witnessf things for the to respond to the record. you talked about the importance of small banks and credit unions being able to make business loans to companies in our districts.
that is not a reason for us to take the giant banks off the hook for prudential regulation. it is very near collapse. it nearly collapsed the economy. it is the reason for you to deal with the occ which is under your jurisdiction and have them when they audit banks and those banks have a prime plus for or prime plus five loan to a company that have ay, that they reserve of an extra 1% or 2% rather than 30% or 50%. secretary, could do more than any of us to get small business loans made by local banks. the debt clock has been behind you. you commented on that. that any tax reform that came out of your department or that was supported by your department would not increase that debt according to the cbo and we just voted in the house yesterday not to cut the cbo
because they are the umpire here in washington to determine what increases and decreases the deficit. i hope you would use your power break up the too big to fail banks. the debt limit is just over the horizon. i hope that you would use your voice to remind us that it is not enough to deal with the debt limit in overtime. after you have used extraordinary measures to keep us from defaulting. the harm is to our economy now because investors have to price and the risk that america will default on its debt. think you'd didn't be dealing with armenia today. we need a u.s. armenia tax treaty. your department needs to allocate one tax lawyer for a few weeks. tomaking the decision as whether to allocate a tax lawyer for a few weeks to the project, you will be told that we should
make the decision based upon the size of the business transactions with that country. i hope that you would direct your department to add two more criteria. the first is whether the other country is willing to use the ..s. model treaty if they are willing to sign on our bottom-line, you don't have to commit much in the way of resources to negotiating the momentumd you build internationally for other countries accepting the u.s. model and second, i hope you would listen to the state department when they testified before my other committee, foreign affairs, just yesterday, that it is important geopolitically that we have this treaty. i will get you the letter from the government of armenia saying they are willing to sign a bottom-line that the united ace has presented. manipulator?rrency mr. mnuchin: on armenia, we are
happy to follow up on your office. i stay on top of a lot of issues but i must admit i am not on top of that. >> you should respond to that for the record. i look forward to working with you. is china a currency manipulator? mr. mnuchin: in our most recent currency report we did not labeled china a currency malay -- a currency manipulator at this time but they have been in the past. if they have been, are you in favor of tariffs or other actions to recoup for america of the jobs we lost when they were a currency manipulator or is it that as long as what they did was in the past we are not going to respond? youmnuchin: i can assure that president trump is very focused on the economic and trade issue with china and nothing in the pat -- all tools will be on the table. >> one more question that is, , in terms ofnt
violating sanctions against russia, are you confident your department made the right decision and why are you not holding any individuals responsible since a corporation is an inanimate construct -- individual people undermine our sanctions. let me comment that i am highly aware of the situation and the decision. it is under litigation so it would be inappropriate for me to make any specific comments. hank you for being nice on me since i am a california resident. -- thank you for being nice on me. >> i will get you next time. >> time has expired. --rnow recognizes wisconsin the chernow recognizes the gentleman from wisconsin. i would like to know that it was not rex tillerson that set the reset button with russia. -- it waslary clinton
romney that said that russia was the greatest that but it was barack obama that set economic policy back. clinton that spent half a million -- >> for what purpose does the gentlelady for wisconsin -- >> i was reminding my good friend from wisconsin that she was not here when you recited the rules -- >> does the gentlelady have a parliamentary inquiry? >> my inquiry is whether or not this discourse violates the rules that you articulated earlier when mr. duffy was unavailable? >> he is violated no committee role. the time belongs to the gentleman from wisconsin. he may proceed. >> i would note that it was not melania trump who received half $1 million to give a speech to
an investment company that was tied to the kremlin. we have a lot of folks on the other side of the aisle who are trumpf the impeach movement. they were trying to impeach him before he was sworn into office. off-topic. but as my friends are talking about russia across the aisle, do you have any idea what is being talked about in wisconsin today? jobs and eight $10 billion investment from foxconn to build the most advanced manufacturing plant in the united states and for the first time and i can even remember how long, to build tv screens and other videos -- it is extraordinary and i was pleased to be at the white house yesterday for that announcement. congratulations to wisconsin. i know it was competitive with other states. that will be a big deal for that economy. >> and we are happy it is not going to california.
we are talking about jobs. economic growth. we are talking about industries that my friends across the industries had written off. they had said these jobs will never come back. they are gone forever. under your boss and my governor, to your point, a $10 billion investment in 3000 to 13,000 jobs in the great state of wisconsin. secretary mnuchin: that does not include construction jobs, i might add. the creation of what you are valley.wiscon representative duffy: maybe that's why my friends across the aisle have lost support. in the heart of all of that is our financial service sector, which is what we're talking about today, but i will go off-topic again and ask about our tax code.
if we are going to have more a revamp we will need of our tax code. some in the administration said top rates might not be going down but might be going up. do you want to give us clarification on your view of taxes and where they should go to make america competitive again? secretary mnuchin: we've been working with the leadership of the house and senate. on the personal side, we want to cut down the number of brackets. we want to simplify taxes. 95% of americans will be able to do their taxes on a giant postcard. that will make my job overseeing the irs much simpler. on the business side, we want to transition from a worldwide system where we allow companies to defer and not pay taxes and leak trillions of dollars offshore with a competitive rate that will bring back trillions ofdollars and huge amounts
jobs to this country. representative duffy: i don't think this is a partisan issue alone companies to stay and compete in america, but also bringing companies like foxconn to the united states of america to bring american jobs for these are not republican or democrat but american ideas, and i would hope both sides can come together and work on reforms so we do not have to craft deals to get through budget reconciliation, which i do not think works very well. i do have some concern about the u.s.-eu cover agreement. the president, who i have been supportive of, talked a lot about bad deals being negotiated by stupid people -- i think that's what he said. this deal was announced the week before president trump was sworn into office. . have spoken with your staff
we sent you a letter -- 21 signers. wereinted at 27 things we concerned about. i know you will send a letter of your understanding of this agreement. you are not going to renegotiate. i do have a concern we do not happen exchange of letters everyone is agreeing to to clarify our understanding of what this agreement means. my time is expired, but i want to make sure we get the of yourselfprowess and mr. trump to make sure this works for american insurers and our state-based model as opposed to an international insurer -- chair: time of the gentleman has expired. the chair now recognizes the gentleman from new york. meeks: let me ask first, when you became secretary of the treasury, you had to take an oath of office, correct? secretary mnuchin: that is correct. representative meeks: just so i'm clear, that both of office
was to the united states of america and our const edition, or was that oath of office to the president of the united states? : it was to thein united states constitution. representative meeks: i want to make sure you are able to do your job. the united states president is telling the attorney he should be protecting the president as opposed to the constitution. most folks -- democrats and thatlicans -- believe maybe the attorney general did the right thing by recusing any investigation that dealt with russia. my question to you, given the president is talking about he wants loyalty and protection because he says the people in his administration are not protecting him, that in matters that are serious to the department of treasury, are you going to protect the president of the united states or uphold
the constitution of the united states? secretary mnuchin: i think in many cases in my job, it is one and the same. no -- ntative meeks: secretary mnuchin: i said in many cases. representative mix: that gives me serious concern -- secretary mnuchin: no, what i said -- meeks:ntative reclaiming my time, that gives me serious concern because there are many allegations about conflicts of interest by the president of the united states, and there is an ongoing investigation against the president of the united states about his involvement in russia. if there is someone that tells me that you believe that your i feelion -- because that no person is above the law. your oath of office, from what i heard, was to the constitution of the united states of america,
not to donald trump, the president of the united states. secretary mnuchin: to be clear, my operation is to uphold the law -- let mentative meeks: reclaim some time because the united states congress has huge responsibilities also. now i am concerned because united states congressmen have -- bipartisan, we are about to implement a sanctions bill against russia, and in that sanctions bill, there's some authority to enforce certain protections. ovat has to enforce certain let me ask you this question first -- do you believe there is corruption in russia, yes or no? secretary mnuchin: yes, i'm sure there is corruption in russia. now, if you believe there is corruption in russia and have you head or understand the sanction bill that we are doing in a bipartisan way in the united states congress, both the house and the senate?
>> of course. >> have you made plans on how you would implement the sanction bill and how the treasury bill implements the bill? in regard to russia? >> have you thought about how you would do planning to go against the corruption taking place in russia? how the treasury department would protect the people of the united states? the constitution, not the president. have you thought about implementing that or can you do that on your own or must you get clearance from somebody else? >> i don't need to get clearance from anybody else. i do have concern sed.
when i see others doing their job and it the president tweets something. quickly about the debt ceiling for example. you said the debt ceiling should be clean. the administration said you should be able to include some increases in changes. what is your position now? should there be a clean debt ceiling? or other things added to it? >> the president has been clear that i am responsible for the debt ceiling and my position has been i believe there should be a clean debt ceiling. >> i am representing the administration on this. >> the chairizes the gentlelady
from missouri, chairman wagoner. >> thank you, mr. secretary. welcome and thank you for appearing before this committee. i dearly and sorely want to get back to the purpose of the hearing which is to talk about treasury and the state of the international financial system. i first want to commend you regarding the treasury report you recently released focusing on regulatory burden. and i was honored to be there and many go a long way toward relieving overburden especially for community, financial institutions so that lending and
economic growth can continue and another thing i am concerned about particularly with my role also on the capital market cub committee is we now have about half as mini public companies in the united states as we did 20 years ago. additionalal there has been a deklein in ipo or initial public offers without a deklein in startups. i understand treasury is going to issue a capple report this year. that report focused on the issue of declining number of companies and ipos. why should we care about this trend? >> as you said, we care about
creation of businesses. we want to make sure there is not too much consolidation and job creation. >> what are some of the other impediments that are chilling the ipo market or accessing capital in the public market? >> well, i think as you know, there are a lot of issues and we will address those in the rep t report. >> i am more focused on the broadening of the economy than i necessari necessarily am individual investors. i would say broadening the
economy it gets back to jobs. we are very focused on getting to 3% gdp which we think is critical. the difference between 2-3% is trillions. >> we have not been there for a long time. we haven't but over a long period of time it is important. >> how did a healthy public market impact small company growth and what impacts does it have on job creation? >> limited capital to industries, limits job creation and investment.
>> >> i want to rescue two questions i would get the first one out of the way. we had discussions about the the movement and i just want to remind you that your predecessor would send us estimates to give us a running account of when that possible time will come. but your response to that has been that congress should act and then you say you keep providing as with the nebulous deadline
sometime after december -- september we both know the market's worst enemy is uncertainty. not just about the debt limit the plays a role in what the fed does and keeping the sterling credit rating all around the world is what has sustained us and is the of backbone of what keeps our country the number one financial system. so i will just ask q. can you commit today that within one week you could follow the example of your predecessor with your best estimate when we will reach the debt limit?.
>> p.s.. they give for the question i am very familiar with the markets that i have been involved in over the last 35 years i do understand the issue very well. i have been very clear publicly i have the answer the question i'm comfortable we confront the government through the end of september based on my information at this time that is subject to change i have said that publicly. the. >> canal saudia to the other question and i want you to know that this upper and concern on this committee with president chomp in this connection there was of movie called the french connection.
and with the efforts is not a democratic bill long position. working with democrats and republicans friends on both sides of the aisle and is a growing consensus of the republican members of congress to owe it to the american people to come clean he is not bigger than america. this is not about president trump but the american people. i love this country. i was born in the middle of a tobacco field in south carolina. but i made it all go way up through the wharton school
of finance in not only that to serve on the executive board of directors at the university of pennsylvania school of business and fine canseco because i come from a poor family. i want you to know in this nation to know that we deserve to know what it is that president trumpet is hiding that he is willing to turn the federal government the justice department is not about him no more. about coming to confidence and truth that we can
restore the respect and the power and the authority of our nation. first through the american people and to the world. >> the of gentleman but you can take the floor. >> good to see if mr. secretary in following up i would like to thank you for your commitment with that job creator in the united states and i was very pleased to see the u.s. covered the agreement to live across the finish line because that means billions
of dollars of savings that kid be reinvested in the economy and i also appreciate your commitment to the equity caps for the u.s. financial-services in china. i was hoping you could update us and have the chinese side reacts when we push them on that issue could we win on this front?. >> i don't know how they will react but this is a yes no answer i don't care how they react but when they tell us that there is no cap i and my interest in going from 49 or 52% but i want no cap. >> bad is my attitude.
>> do want to of knowledge mr. scott i do share a great love for this country and it is extraordinary with your accomplishments. >> on the topic of housing finance reform to make it very clear that the conservative your -- conservator ship to deal with fannie and freddie through legislation but as we work towards reform in this committee and senate we cannot lose sight by the previous there are benefits no other country has that creates the duopoly and among those benefits are tax exempt status with the
special sec exempted announced securities and the ability for the fed through the monetary policy operations with a perpetual line of credit and above all else the a government guaranteed it comes to the charter to give them the ability to go below market rates. as someone who was concerned about the of moral hazard, itt secretary mnuchin you understand can you do these about legislation in with you agree reconstituting freddie and they any should be avoided at all cost?.
>> i do look forward to working with you as i have said previous solution that has a pretty for the housing market and doesn't put taxpayers at risk. and that does not put taxpayers at risk. as a huge part of the economy and leaving them been considered -- conservatorship doesn't make sense. >> so given the of past experience of the gse do you agree your, that fannie mae and freddie mac should not be reprivatized as privately owned as the government backed institutions?. >> implicitly?.
>> in other words, under any circumstances to be reprivatized as privately-owned and government-backed?. >> if there is something it should be explicit and pay for or should be very clear there is an implicit government backing. >> the chair now recognizes the gentlemen in the dashing pink suit and from misery. [laughter] -- missouri. >> thanks for being here. with a democracy once those
rules for politeness but in that regard the ranking member was talking and i am simply hoping that as we move along that you would respond to letters of communication. >> it is impractical for you to respond to every letter that we send it to you with each member on the democratic side. so i am just hoping in the future that the legislators have responded in a timely fashion.
>> unless you want to respond to that?. >> first of all, we have over 58 we have responded to that we will fully cooperate with you to the extent you are asking for this aid information i would ask you to coordinate with information you have already received we are fully ready to rule commit as responsive as we have been. >> i could argue with that. but with the development of that legislation it is a turbulent time. and i will it mitt -- admit that there was a
destabilizing component in that legislation as it relates to this small community banks with 22 percent of them of this small community banks have declined or evaporated over time. this is troublesome. twenty-five% say anticipate merging with another bank. so the larger banks are getting even larger. i think that helps a little bit from that tournament meant that however i am asking you blooded vice would you give us on how we can quickly remove the
burden from the small lakes? i don't know anybody on this side that believes we ought to continue to allow the burden against small community banks. >> so what can we do to remove diverted quickly?. >> thank you every look forward to working with you and i hope we could do this on a bipartisan basis as it relates to do community and regional banks. so to have this balanced report the regulators have agreed. we have a long list of regulations and their more than happy to follow up those specific legislative ones. >> see with that with the chair and other ranking member to work out those
recommendations to provide that relief?. >> to that extent we are more than happy to do that. >> i am hoping that will happen. like every other member of community banks and small banks that are struggling. it did save a little frustrating to me that all be have to do is change the legislation and we don't do. >> i share your frustration and this is the biggest single issue since community banks know how to lead. -- clint. >> i wear pink so you can find me quickly. >> your the best mail addressed in the room. >> the gentleman from oklahoma. >> secretary mnuchin thanks
for being here today i serve on the ag committee carrying about derivatives are similar instruments to help constituents manage risks of what to discuss margin requirements. first i was pleased is your recent report suggested excluding the margin from the derivatives is the supplemental ratio and thanks for coming to that conclusion as the regulation reduces the clearing options for customers. i hope that it is reviewed and remedied soon. second come my want to ask you with the of rules that have established internal transactions but the thinking regulators have not it raises concerns that only because it creates of
patchwork of the fax with the approach of the of baking regulators is inconsistent. having said that you have any comments from those banking regulators to level the playing field. >> we look forward to working with you on that first issue that should be accounted for and that is one of the issues. >> so to reduce the options that they manage the risk to sell those commodities to secure their resources so that approach taken by cftc
that we're in a position to redress that our like you to commit your department of the of all leverage guidance much of the energy industry it is harder to obtain capital if you briefly tell the committee why your department suggested withdrawing a the guidance in a better fashion?. >> we think that would help wending significantly that doesn't mean they should have properly under write the loans but we do support a blanket across-the-board approach that cuts off leveraged lending. >> indicates some of the energy industry they have
the proven ability to you deliver and continue their business creating a situation we have pushed them over the edge that seems counter productive. i appreciate that with that i yield back the balance of my time. >>. >> will come again mr. secretary. i was relieved to hear you saying negative you are going to be very vigilant on line and time monday wandering -- money laundering. so to find out if that
investment activity tie-ins scrutiny for regulators and law-enforcement? so of course, our president and his family has engaged in. and those that are convicted of crimes is that problematic? yes or no. >> it sounds that way. >> i can be specific what about the so whole project. >> but i cannot comment. >> is this where it cygnet: negative is that problematic?. >>.
>> i am not connecting this to a terrorist financing. >> i could consume all my time but i would just bring to your attention that there have been comedies are not secret to it is in the news for everybody to read about the partnerships the trump family has with those convicted of crime and associated with russian activity. is that problematic?. >> that is not part of my job to commit one way or another. >> your secretary of treasury with the foreign corrupt practices act. >> i have knowed jurisdiction over. >> i mentioned in my opening
statement to talk about conflict of minerals and those disclosures which you supported so those judgments to support those eliminating disclosures for those in distant -- industries? so i will give you examples as exxon mobile fines of four corrupt dealings are you familiar with have a horrific civil war and how the groups took control of the mine and use those proceeds and they ended up in the u.s. consumer market
we have been dead for in the fund did the killing so upon what judgment did you rely we don't a these provisions provisions?. >> it was gone day of violation that we think there is a lot of problems to be more than happy to follow up to talk about this issue. >> alibi to yield the last minute. >> the queue for delving into those issues walking through relationships president of the united states with those who have
been jailed or been involved in criminal activity and the treasurer was asking you what you think about that and they're real question is whether or not your responsibility to protect the people of that country as it appears for those in his cabinet or others and that is the question. >>. >> thank you very much. secretary mnuchin i
appreciate you being here today for more than six years i have been fighting for a group of heroes that were once held captive. february 13 with of the department of defense contractors as they were shot down by the revolutionary armed forces of colombia a designated terrorist organization that controls more than 95% of the world's cocaine business the pilot was executed on the spot and three floridians were captured and held hostage in the jungle and severely tortured for
more than five and a half years and told rescued by the colombian army. so obtaining a federal judgment under the anti-terrorism act for damages against park to compensate for their active terrorism during their captivity and the execution of an american. however there are no farc assets except for the drug money of the agents and these are frozen under the foreign narcotics kingpin act and under current law victims cannot access to frozen assets under the kingpin act i believe the victims which profits into activity with drug money should be compensated from
the drug money we have secured in the 114th congress i introduce legislation to provide terrorism victims and to change the of law passing the house by unanimous consent but stalled in the senate of the foreign asset control raise concerns about the bill but they never mentioned in the house a reintroduced legislation to this congress i'm hoping to bring that to the floor soon the situation is the former hostages have been waiting 14 years for justice and they have received zero help from the u.s. government that they serve because of the office of foreign assets control.
i'd like to get a commitment to make these brave americans whole again. >> this sounds like it was a horrible situation i am not familiar with any of those details with i am rather happy to work with you upon the legislation and understanding. >> predecessor gave a song and dance. >> we will follow up. >> is chair recognizes the gentleman from minnesota. >> secretary mnuchin one of those worst moments for the foreclosure collapse i don't ever want to see that again. i am concerned about your
our approach to supervising the mortgage market to make sure that banks that engage in those issues are up building as high standards of ethics. so could you explain how you are the ceo could engage in 6500 violations including backdating of what you engaged in?. >> first of all, let me assure you i did not make one mortgage during or prior to the of mortgage prices sci-tech over three banks from the fdic one of which was the worst originator in the entire world by a very
proud of the fact that we started loan modification under the fdic control which we did so i take great offense to anyone who calls me the foreclosure king and with what ever issue. >> cry every cleaning my time. >> i allow you to answer for. >> read on how of a problem with you answer but i will not let you filibuster civic there is no question before the secretary at this point spread the vice president with that 6,000 foreclosure related documents which you do your supervision?. >> not directly. >> was she employed under you?.
>> she was employed at the bank. >> she said under testimony with those foreclosure related documents per week week, what is your position? >> i have answered this extensively. listen to me. >> no i don't have to listen to you. >> i would like an answer. >> if you're not going to answer. >> what is your position on robo calling?. >> o robo signing there is not a legal definition. >> do you deny under your supervision the robo signing occurred at your firm?. >> it was not robo signing.
>> you deny that?. >> and also for the record under direct testimony and for people watching robo signing is when you are signing documents and you have to review the documents you have an obligation to review them sign them without reviewing them is illegal because use where the you have reviewed the documents so under the secretary supervision that happen to a very severe degree of he was ceo of one west was nine white elite -- nine times more likely to foreclose from originating a mortgage from other
communities are you concerned about the disproportionate number of people but graf foreclosure at the hands of your company there were persons of color? where are you sure there is an equal administration of justice as the engaged in foreclosure?. >> i will assure you we upheld the strictest of mount the rules and regulations reviewed by the occ the fed and consumer protection and bureau and would not discriminate in any way. >> we will see. >> i have a parliamentary inquiry. >> for what purpose?. >> would you like to give an
imminent day second to apologize? mac the time belongs to the gentleman from illinois and. >> seven like the record touse state was paying is the only big that concluded the independent for a closure review every single loan was reviewed and properly compensated. also we were the only big to do all alone modifications to take great offense in the body that calls me a foreclosure can bring key member i have had the opportunity to talk with you about this many times before it is nothing space very proud of the one rest --
west record robo signing is not a legal term and i am being harassed. >> you are under oath. >> the time does not belong to the ranking member but to the gentleman from illinois. you may proceed. >> lahood june 12 report makes recommendations of the cybersecurity framework in which a river together to harmonize regulations bin should work to those interpretations with specific rules of guidance so how do facilitate these
efforts are what can we do to support this work?. >> it is very critical cyber security is an important issue we're working closely with the regulators is the importance of the confidence of the consumers if you no venture capital funds is the innovation and job creation with that june 12th report so changes of those provisions a system of the other capital critical. opportunities have you discussed this specific position that have the authority to make amendments ? and what is the treasury department that
conforms to existing laws how do you encourage with this important work?. >> one parches working with the regulators with those regulatory issues people can follow the full court ruled appropriately and also we would be more than happy to work with you on those changes strike down the june 12th report those that make and that denominator should be made for the cash hoard of deposit by a agree with that recommendation so how do you
we europe 28 states but plus the district of columbia and if you add all of the states that allow canada soil that is another 16 states mostly it is the statement california and colorado that it is important the treasury department and the justice department continue to focus on this because unless the have banking services the amount of cash is a huge magnet for crime and it is very important we allow those setter of the golan the state to have payroll accounts.
and i will just get this handled for quite unaware you larval one basket on the record but i want to make sure you understand to come up with ideas to have some level of marijuana use so we were very concerned with those types of clients and then to understand that issue to figure out that a regulatory solution. >> we would really like to
work with you to get this ironed out. >> you use the words cutting off of money in a way that can work but that also applies to a north to vietnam and russia. >> candida applies to venezuela where we launched sanctions yesterday. >> i appreciate that so with respect to sanctions because of aggression and actions and elsewhere the department continued so on that we
so we talked about this before our important it is if we're going to grow the economy and with the highest tax rate to have the highest corporate tax rate at the same time the effective tax rate is 21st in times of tax revenue business is make decisions and in my opinion what impact does this have on our economy? we can change the equation we need
to look at how they shelter their income what is happening to them 14 percent? the day looking at where they want to locate their businesses? what type of entity lawyer who'd day will higher so we're having of a little bit of an issue here whether health care or anything else if we can only do corporate tax reduction would you not agree lowering that tax revenue with the
tax shelters of going from 35 and 50%. not just about lorena rate changing from a worldwide system and we're the only ones in negative appointed out and sometimes i even pay any tax and then we broaden the base and raise revenue. >> with that anemic one or 2 percent in the years following the recession and and?.
>> mr. chairman in thank you and mr. secretary i want to do deviate from that area because i agree that we are presented with a terrific opportunity and i want to make one pleat and asked you questions there is strong bipartisan agreement for a comprehensive tax reform there are elements that our important to this side of the aisle like maintaining distributional equity and a may surprise you to know of zaph revenue neutrality and that poses a threat to programs like medicare and
social security but what is important to us is a process that is regular order started and a bipartisan fashion with the way health care was brought forward a process using reconciliation to now that the failure means working with the democrats so my question to you is are they prepared to push ahead with that your ability or is that closer to
the health care rolm?. >> i would like to hope it is bipartisan with shared values and objectives and goals and i personally have sat down with many democrats to get feedback and afford to continuing to do that. >> i think a lot of the debate is on the republican side of the aisle i think your voice will be very strong on these issues for pricey the president really mean of the democrats when the process of health care was designed to exclude. and the year previous career have not been in town that long the it for you touse
set the stage with the bipartisanship so i think we all recognize to some extent on that bipartisan cooperation. and i would note the democrats under obama are having a process that excluded that is simply not true hearing after hearing that ultimately did not bear fruit -- bear fruit. it would be nice if the house could commit itself in a bipartisan fashion of. >> recognize he said gentleman for ruth carolina. >> i want to thank you for
your community banks but in north carolina today we lost 50 percent of the bank's since 2010. that has had a devastating impact so as you know, fleer working on a reform bill that we hope to introduce some time this fall to to to the avert -- emerging technologies and we want to see greater oversight as the growth 350%
so a did to these well coordinated efforts they have spoken out including the secretary of defense or the national intelligence the cia and nsa and the joint chiefs of staff. i would like to have your clarity on this issue and understanding which you think is of reference to. >> can i take my role very seriously and look forward to working with you and others something hopeful we can do this on a bipartisan it -- bipartisan basis. but we have sought the opportunity to work with you
and others. there is a long list of changes with afford to making with you. i have some real concerns of several meetings with the ambassador i have yet to receive any reports they were prosecuted for terrorism finance issues for those who reside there and the loss works with impunity. and even he said to be in his efforts that he worked very closely with al qaeda
and said i will take care of them later. but have they been in composite?. >> so working very closely with them i can tell you they're cooperating and take this seriously most recently signed a memorandum end we are committed to working with them to make sure there is not terrorist financing. >> for one other matter i would like to know your assessment of the current process with the transfer and sharing of data so what
can be done to enable those financial solutions to have better access that allows those to coated on those concerns that we have? so it seems to be that to directly help our concerns with privacy matters and what the fed to institutions have on them and to get your perspective. >> we look forward to working with you we always thought they went into a big black hole and i can assure you the first thing that i
did when i got here was to ask that question. >> your time has expired. >> ag for coming here today of a leg to focus on one of those spars areas the before forceful and effective response or currency manipulation as a manufacturing businessman it manufactures the theater and lighting equipment i have long been concerned about the manipulation of a foreign level playing field the did to make periodic reports of manipulation to have that quantitative test which i believe was done very well you correctly
concluded six countries including china should be put on a the watchlist but no country satisfies each criteria but if with the future if it is designated a currency manipulator he could only be charitably described as troubling there is an alternative as a matter of national policy with any country has been designated they would be countervailing currency of one of the trading partners intervened for that competitive advantage woofing cage to cancel this defect -- advocating for that countervailing currency
recently published a book with very specific proposals and while there is some authority it could obviously be striking in that legislation are you considering again some of manipulation and i open to considering intervention or other approaches in response?. >> we look forward to working with. >> guest: this. having recently studied this internally this is one of the issue is we looked at the agreement. >> but in the case of nafta manipulation is not a major issue. . .
i think we have to look at this and i agreed that there should be a change going forward. we are not going to address this now. we have a debt limit can we have a budget process. there should be very strict controls on spending money. once we have agreed to spend the money, we should make her the government can pay for it.
the chair currently anticipates clearing for more members that -- four more members. the gentleman from pennsylvania is recognized for five minutes. >> thank you, mr. chairman. mnuchin not one of my parties is to make sure the regulations for banking agencies are tailored to the risks that -- i want to join my colleague from illinois in highlighting this issue. calls for examining cash deposits at central banks from
the denominator of the supplementary best slr is particularly important for custody banks due to their role as a safe haven. my concern is the unique aspects of the custody banking sector have not been fully considered -- chair yellen and governor powell have recognized the slr disproportionately affects custody banks. which introduced a bill has 14 bipartisan cosponsors to .ddress the issue i ask you to keep the committee informed of the process. can you say whether we expect action prior to the effective date for the slr? >> i cannot commit whether there will be action or not.
it is something we are very focused on and i agree with you particularly as it relates to custody banks. can turnht that banks away cash in a financial crisis doesn't seem to make sense. >> thank you beard and number of us on the committee have expressed concern about the we need to make -- whatensure a robust are some ways that negotiations can be improved and made more transparent? >> we spend a lot of time looking at the cover agreement. we did negotiate a side letter we are compelled with desk we are comfortable with. -- we are comfortable with. >> we've had a number of
hearings with bankers and we've heard that term before. with respect to filing requirements, they are more often focused on checking boxes than providing useful targeted data and law enforcement. they worry they ultimately drown out the signal with too much noise. should the process be reformed? >> i think it should be looked at. i don't know whether it should be reformed or shouldn't be. useful getting these reports. it's one of the things we will continue to look at. thank you. >> my colleague from wisconsin and i have introduced bipartisan legislation that would fix the unintended consequent as of a rule that when quebec last october that destroyed money market funds as a source of low-cost variable-rate bar waiting for businesses on state and local governments.
it would empower americans to make independent financial decisions, prevent taxpayer-funded bailouts and make regulation efficient, effective and appropriately tailored. i understand the treasury department will be issuing additional reports on the exact order to the president in the coming months. i would ask that you would give considered considerate -- --sideration to best have -- thehink we treasury report recommends the
frequency of section 165 resolution plan submissions to two-year cycles. both the federal reserve governor and fdic chair have testified they supported it or are at least considering a two-year cycle. i think this is something that can be accomplished administratively. is that something you anticipate? >> it is something we're working on commit something we think makes sense. >> i'm glad to hear that. it certainly makes sense to a lot of us on this committee. the time of the gentleman has now expired. the journal recognizes the gentleman from maryland -- that chair now recognize as the gentleman from maryland. working hard on comprehensive tax reform, which will involve adjusting rates and deductions and hopefully doing it in a way that is progrowth
and more simple and doesn't affect negatively the long-term trajectory. let's assume you are ultimately not successful in getting that done, which i'm sure you will not want to acknowledge today. let's assume you're not. would you then consider an approach whereby you pursued international only tax reform and paired that with the kind of long promised infrastructure program? which i think in many ways would be more beneficial for the u.s. economy than just tax reform by itself without any structure but that approach has had very significant bipartisan support in the congress. at least 40 members on each side of the aisle have supported a specific proposal. it involves changing the international tech system, eliminating deferrals, limiting
the rates so it is more competitive on a go forward basis and lowering the rates on all the cash that is over there now. as most people know, that approach would generate revenues for the treasury and your department and what we've proposed to do is to allocate that and pay for a large-scale infrastructure program. assuming your competence of tax reform is not successful -- comprehensive tax reform is not successful, would you consider that approach as your plan b? mnuchin: we are already working on infrastructure. on president is very focused eight $1 trillion infrastructure -- on $1 trillion of and projector spending.
focused on $1 trillion of infrastructure spending. we've allocated infrastructure spending in the president's budget as it is. at the end of the day come all these things have to balance. we have to look at the cost of it in its entirety. >> if you do it sequentially, which is what you are proposing, and tax reform -- let's assume tax reform is completed and it is successful come are you envisioning setting aside money to pay for infrastructure spending as part of the tax reform? how do you propose to pay for it if you don't do it as part of tech support? get thechin: if we can economy to 3% growth, there is an additional $2 trillion in
revenues. -- let's assume tax reform were to get done. are you proposing to wait 5-7 years? sec. mnuchin: not at all. i don't think it will take five years. we should pass infrastructure spending which will be spent over time. >> when you envision passing infrastructure spending? >> hope that is something we passed later this year -- that we pass later this year. >> how do you pay for it assuming the congress is not supportive of proving unpaid for spendingg unpaid for -- approving unpaid for spending?
you cannot use growth. of theuchin: at the end day, you have to look at all these things in the context of the overall budget. and it wasrm failed bipartisan support in the congress to do international tax and infrastructure, you would not support that? sec. mnuchin: again, i'm not making hypotheticals. i'm happy to work with congress and everything else. i'm hopeful we get tax reform and infrastructure both done. they are both incredibly important to the economy. >> it just feels with your approach you're not going to have any money left for infrastructure. >> that chernobyl messes the gentleman from colorado, mr. tipton -- that chair now recognizes the gentleman from colorado, mr. tipton. >> one of the issues we are seeing in our state is a tale of
two economies. itan areas are doing well. as we move out into rural areas, we are not sing the recovery happening. one of the challenges we are hearing from our community banks is the ability to be able to make loans. one of the key concerns we've had expressed was actually addressed in the treasury report when you were looking at the objectives in terms of making sure that the interests of the united states are not undercut by outsourcing regulatory requirements to the global community. could you speak a little bit in terms of what you're looking at for the community banks? 3, how to to basal address that so our local banks can make those loans. sec. mnuchin: i'm not concerned that community banks will be limited by it.
it has not passed and we are generally supportive reaching resolutions. a lot of it is about bringing european capital standards closer to ours so there's a level playing field between international banks and ours. not overly concerned about the impact of that on community banks. i'm more focused on her own regulatory issues. >> when we are talking about those regulatory issues and our concerns, we look at the outcomes in rural colorado is a good example of this, the lowest labor participation rate in decades. more small businesses are shutting down and we've had testimony that has come in regularly in regards to where banks are not able to make the loans they would like to be able to make. what do you see as the solution to that? , i firmlyin: again believe in proper regulation.
cases, particularly poor community and regional banks, we have overregulation. it's important that we had the opportunity to have chair yellen in as well. we've heard about the trickle down effect. the best practices and how that's impacting local communities and their ability to make those loans. would you may be speak a little bit -- we've had several questions in regard to bsa you see those needing to be tailored as well for our small community banks? sec. mnuchin: again, i think the bsa aml process should be reviewed. it should be the same standards on small banks as big banks. ,f people are money-laundering there should be the same standards.
>> i would like to be able to yield a bit of my time to my colleague, miss williams. >> thank you. i will be brief. i'm a small business owner from texas. tax reform is a big deal to me. we have to get our tax rates down. heard came to congress, i terms i'd never heard of before -- one of them was revenue neutral. i never heard that in the private sector. a lot of people are not believing in main street america -- main street america is ready to have a huge impact on this economy if they can get regulations and burdens off of them. i would reinforce a lot of what you said is the economic growth that will happen with true tax reform is the things we've all -- italking about appreciate the path you are on and not being confused with
terms nobody heard in the private sector before they got to washington. i appreciate you being here today. chairman.ou cummins -- thank you, mr. chairman. , you the treasury report indicated the copd is the source unduly broad regulatory powers that have led to predictable regulatory abuses. are there any changes you foresee in the bureau that could happen without congressional approval at this time? sec. mnuchin: i think that's mostly going to require congressional approval. of the gentleman has just expired. washington.n from >> thank you, mr. chairman. carolinague from north
mentioned the committee on foreign investment in the u.s. i have read the department of defense report he alluded to which discusses our strategic competitors seeking to access critical resources and chair'sgy and with the permission, i would like it entered into the record, if i may. as is common with government reports, the authors evaluate a no action alternative or what happens if we do nothing. they note the cost of doing nothing is extraordinaire high -- extraordinarily high, citing estimates of $300 billion in intellectual property stolen every year and $300 billion in ases to u.s. companies lost a result of ip that. -- ip theft. secretary, here are my questions.
do you think we can afford to do nothing? sec. mnuchin: no. >> will you and your staff commit to work with congressman binger and myself who share an interest in this issue? sec. mnuchin: yes. >> do you agree with us and our strongly held belief that this issue is pressing? sec. mnuchin: yes. >> i understand there have already been some proposals shared between our staffs and yours. if we keep at this through the recess, do you believe we could have a bill ready that you can support before congress comes back in september? sec. mnuchin: that sounds aggressive by congressional time. i want to be careful to not go out on a limb on that. we will be fully available. were not going away. >> it's a question of the department of treasury being aggressive. sec. mnuchin: we are happy to work with you and others. we've given our views on various proposals. tolastly, i would like
associate myself with the remarks of my friend from colorado with respect to the regulatory framework or access to banking services in states that have legally allowed marijuana consumption. my state is also one of those. if there's anything you take away from today's hearing, i hope you will write this name down. travis mason. mr. secretary, travis mason was a 23-year-old marine veteran who served this country honorably. he was a husband and a father of three small children. he was studying to be a law enforcement officer and paying his way through that as a test criminals entered the establishment understandably concluding it was all cash and
travis mason lost his life that wife a widow his and his three children without a father. that is on us. there was no need for that. the regulatory framework has failed. this is first and foremost a public safety issue. travis mason is exhibit a in that regard. we are not going to turn back trialock despite what balloons some people are floating with respect to the legalization of marijuana. first medical use, then adult recreational use -- also the use of oils for different medical ailments. it has been an unrelenting march forward from the standpoint of a liberalization of laws. what we need is your help to make sure that there isn't another travis mason. thecoal memorandum and
parallel men random -- memorandum sets forth medical principles -- critical principles that we proceed only if we do not provide access to do not allow cash to get into the hands of gangs and cartels. that is what we do in states like mine where we have a well regulated marijuana market. it is the safest thing to do to enable those businesses where hundreds of millions of dollars have been invested in these businesses. we need your help. we ask for your help. travis mason. with that, i yield back my time. the secretaryhank for his testimony today. without objection, all members
--l have five days to sum it summit written questions to the chair, which will be forwarded to the witness for his response. please respond in as promptly as you are able. this hearing stands adjourned. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] [captions copyright national cable satellite corp. 2017]
future of data analytics with remarks from a psychologist and data scientist who talks about the method he developed for analyzing an individual's personality traits based on their social media activities and how those profiles have been used in business and politics. the event was hosted by the computer science museum in mountain view, california. you can see it tonight at 8:00 eastern on c-span. after that, the naacp hold a discussion on the u.s. criminal justice system. we will hear about the state of the justice system where people face outcomes compared to their white counterparts and what decisions need to be made to close such gaps. ♪ >> c-span's "washington journal news andvery day with
policies. -- the law and its relevance to the russian investigation. and, republican pollster democratic pollster talk about public opinions and the key issues facing the trump administration. >> tomorrow, john yarmuth discusses health care and the 2018 budget and appropriations process which recently included defense spending and funding for president trump's proposed border wall. congress men your method currently serves as ranking member on the house budget committee. uthcongressman yarm
currently serves as ranking member on the house budget committee. >> we've been on the road coming meeting winners of this year's studentcam documentary competition. in connecticut, second prize victoriaack, kyle and were handed $1500 for their documentary on environmental justice. honorable mention one is candace and jesper received $250 for the document read on health care. a second prize award handed to audents kera and caroline won second place prize of picking hundred dollars for their documentary on the wage gap. in northampton, massachusetts, won an honorable mention prize of $250 for the documentary on saint therese these and immigration -- on
sanctuary cities and immigration reform. the students received an honorable mention prize of $250 for their documentary on the opioid epidemic. to all the students who took part in our 2017 studentcam documentary competition. to watch any videos, go to studentcam.org. studentcam 2018 starts in september with the theme "the constitution and you." >> earlier this week, the house debated a bill that establishes new sanctions and enhance s existing ones against russia, iran, and north korea. the debate from tuesday.