The administration has proposed we increase revenues so that we can raise the defense budget caps by $26 billion in fiscal year 2015.

if the Swiss bank does not want to or cannot comply with U.S. law, maybe it should not do business in the United States.

I understand that the Army is planning renewable energy projects with an energy capacity valued at $7 billion in the coming years.

If the budget caps remain unchanged, however, the Army would shrink to an end strength of 420,000.

It is a critically important item that Senator Blumenthal has been raising.

Thank you, Senator Manchin.

What you are asking for is very reasonable in terms of this additional $26 billion just for defense and $56 billion overall for defense and non-defense.

I believe we must pursue just that continuously and with determination in the months ahead.

Burma continues to undergo its dramatic democratic and economic transition, including the release of over 1,000 political prisoners.

Did you find that some Swiss bankers advised U.S. customers to secure transactions under $10,000 which would then avoid triggering cash transaction reports?

We believe they did get these reports.

It is an unacceptable explanation. That is their explanation. It should not be your explanation.

And you told us that you made that decision early in 2012. Is that correct?

Are you going to change any procedure at all?

I will tell you, the $6 billion that was produced was the result of a tough enforcement action that worked.

I have indicated that we hope that treaty will get ratified, but it has its limits, and it does not apply to thousands of accounts of people who owe us money.

They should fear it.

I cannot think of anything much more egregious in this area than a bank telling a customer, helping a customer to open up an account in a shell corporation account in some tax haven.

With the effect that it had, which was to make the Swiss operation look more positive than it otherwise would.

But did you tell them that you had never made such an agreement?

These banks operate in the United States. They come here, they get clients here. OK? They have to operate according to our laws.

Well, would you give us a list of the reports that we have asked for that you have not shared them with this Subcommittee and the reason that you have not shared?

They have not changed their laws, have they?

Swiss secrecy protections is preventing us from going after behavior which is criminal behavior, allegedly, and is this going to be cured by the treaty?

Is this the way your bank should operate?