Senator Shelby and I are determined to have this be a very inclusive process.

Yes, but, OK, two points I would make. My time is up. But, number one, it would be done on a random basis and secretly, number one.

It is clear the system as it exists is broken, and I want to look forward to working with Chairman Dodd, Senator Reed on his excellent proposal.

I want to again publicly thank Jack Reed for his work.

What we found out was that rating systems were filled with conflicts of interest.

And, second, your proposal, of course, is not mandatory, and simply giving the information, if everyone is in the same boat--and just a few of them doing the same practice might prove to have the same discouraging effect of sort of paying…

I think that, in our judgment, one of the reasons it is so critical to move on financial regulatory reform this year is precisely that.

There are two areas... that deserve special recognition for the problems.

That is a little bit of what we would say in Brooklyn is turf.

I suggested further consolidation of bank regulators would make a lot of sense.

I urge the Congress not to create a 'too-big-to-fail' category of financial institutions, directly or indirectly, either through the regulatory mechanism or by rule.

A lot of the biggest failures were under not Mr. Bowman, I don't blame him, but his predecessor's watch.

I agree with the Administration and many in Congress--notably Chairman Dodd--on the importance of protecting families against a repetition of the bad behavior that proliferated in recent years.

For myself, I feel strongly that an independent consumer regulatory agency can only work if these three problems are solved.

There are reasons for one strong, powerful, efficient regulator, and I think people who are objective... tend to think that should happen in the banking area.

I think that was a big mistake and one of the things that got them into trouble.

To me, this is a terrible mistake. We are enshrining some institutions with such importance due to their size and interconnected characteristics that we are implicitly accepting the notion that our Nation's economic well-being is in their…

I have expressed publicly my admiration for the job that Ben Bernanke has done in managing this crisis with Secretary Geithner and others.

I didn't understand that. It just sort of happened, I guess.

Community banks did not cause the crisis and they should not have to bear the cost or burden of increased regulation necessitated by others.

Look, I wouldn't deny there are arguments on the other side, but you would agree that these four arguments make some sense for a consolidated regulator?

I share that view with my colleague, Alice Rivlin, who I think has testified to this Committee.

Mr. Chairman, I am deeply grateful.

It is clear that we need to end charter shopping, where institutions look around for the regulator that will go easiest on them.

As you said, 54 out of the 69 banks that have failed this year were State chartered banks.