Elizabeth Warren

To be blunt, Fannie and Freddie have put home ownership out of the reach of millions of creditworthy families.

I think that is really valuable, and offering a lot of approaches that Fannie and Freddie could be using.

Give them a crack, and then after that, if it does not succeed, then, fine.

It has to be First Look, first bid.

I just think it is very important that the First Look Program actually work to help keep homeowners in homes and to help stabilize communities, not, as you say, a box to be checked off before the property gets shipped over to investors.

I was pleased to see that last week, Treasury announced plans to enhance the existing HAMP modification to avoid some of the problems that these resets will cause.

We certainly are on this one.

We should make some changes to the First Look process so that we do not create incentives for investors and cash offers to get a preference.

You backed up when Goldman was unhappy.

The problems originate from the culture of the firms and this culture is largely shaped by the firms' leadership.

I want to thank my friend, Senator Manchin, for our work together on trying to focus on the Fed.

We need to put a lock on the revolving door.

Based on your responses today, the New York Fed is not there in terms of acting on the issues it identifies.

So, I understand that you believe that you have made progress in implementing the recommendations from the Beim report.

I think you should have been investigating a whole lot earlier.

the deal with Goldman was, quote, 'designed to help Santander artificially enhance its capital position.'

I am very glad that you commissioned the Beim report in 2009, and you have discussed how seriously you took that report.

The test for safety and soundness is not whether or not the activity is legal or illegal.

We cannot build a strong, reliable bank oversight system so long as the revolving door keeps putting bank executives in the role of temporary cops.

Action is about shutting down shady transactions that could imperil the safety and soundness of the bank.

Are they too big to manage? Are they too big to regulate? All important questions.

I am sorry. Surely, you are not going to take the position, Mr. Dudley, that if most of the time most of what the Fed does is boring or even does its job, that it is OK every now and again to throw in 10 minutes of backing people off their…

It is bad enough when banks can capture the agencies that regulate them or the Congress, which is all too often the case.

The message that is sent from the President to the Board, to the supervisors, is that financial regulation is secondary.

Illegality is not the test. The test is what threatens the safety and soundness.