First, I want to say to a certain extent he's right. He's a good CEO and it is a well run bank. That's precisely why we need regulation.

Well, first, I want to say, to a certain extent, he's right. He's a good CEO and it is a well-run bank. That's precisely why we need regulation. In other words, what he's telling us is, even in a very well-run institution, as his is…

The danger would be none of this is $2 billion, but if they lost so much that they couldn't pay their debts, that's why I say we begin with the requirement they keep more capital.

No, we have things in place that will prevent that from happening. It is a reminder, however, that it was important that we adopt the rules we adopted, that mean 2008 can't happen again or unlikely to happen again and those who said, oh…

Well, they just lost $2 billion. They just lost about five times that or four times that through their own errors.

The fact that the American institution is doing this overseas is no reason to say they're not subject to regulation.

No, because we have things in place that will prevent that from happening. It is a reminder, however, that it was important that we adopt the rules we have adopted that mean 2008 can't happen again or very -- it's very unlikely to happen…

It won't -- the danger would be not if this is $2 billion, but if they lost so much that they couldn't pay their debts.

We say, even the smartest of you, you're doing things that are so inherently risky, you have got to be better protected.

The Republicans have been in power since January 2011 and have done zero on Fannie and Freddie.

I think it is a terrible mistake to require all of the Federal Reserve Bank presidents to be appointed and confirmed by the Senate.