Secretary Gates, the Air Force has proposed to incrementally fund the acquisition of two large and critical satellite programs, using multi-year, fixed-prices contracting authority that will require advanced appropriations.

All in favor, say aye.

The Department of Defense, as are all Federal agencies, is currently operating under a continuing resolution (CR) that expires on March 4, 2011.

with the exception of the moderate risk associated with projected retention in some Navy irregular warfare specialties, I assess the risk to readiness, effectiveness, and cohesion of the Navy to be low.

DOD's base funding of $526 billion for fiscal year 2011 would be $23 billion below the original fiscal year 2011 request of $549 billion.

wounded sailors and marines deserve the highest priority for support services, healing and recuperation, rehabilitation, evaluation for return to duty, successful transition from Active Duty, if required, and continuing support beyond…

Mr. Panetta, if you are confirmed, do you plan to continue the review of the USML?

Mr. Panetta, what is your understanding of the timing for this effort?

It will be necessary to establish a different relationship among the Active and Reserve components of our Armed Forces, and it is likely that we will have to establish a different relationship among our closest allies and partners.

If the Government of Iraq requested the continued presence of U.S. military forces, including combat forces, would you recommend the approval of such a request?

The troops deserve our best.

I think we have been really penny-wise and pound-foolish in the way we have funded our regulators.

In my judgment, since these markets are so connected, it would seem to me that there is nothing preventing somebody from using one market to manipulate another market.

I think that is an anticompetitive practice and ought to be seriously examined.

The merger of the data not just at the executing levels but also the exchange order books, and that is absolutely essential.

I do not want to give the impression that the equities market is unfair.

I think we need to worry less about the fragmentation of the market than we do about the fragmentation of regulation.

Fractured Markets. The first fact we need to grapple with is that our markets have changed enormously in the last 5 years.

Nothing is above the scope of this hearing.

That fragmented and incomplete information, what is not included in the information, is the beneficial owner or the person putting the order in.

This was not so much a crash based on some glitch; this was an intentional effort on the part of somebody who had as little as $30 to $50 million and a few computers and a couple programmers.

I hope this hearing will help inject greater urgency into strengthening U.S. oversight of our fractured, high speed markets to restore investor confidence.

The very markets that we rely on to jump start our economy and invest in America's future are susceptible to market dysfunctions.

The very markets we rely on to jump start our economy and invest in America's future are susceptible to market dysfunctions that jeopardize investor confidence.

How long it took the regulators to figure out what was going on in the Flash Crash is a direct result of the fragmentation of regulation.