Jack Reed

This Subcommittee has held several hearings in recent months to focus on gaps in our financial regulatory system.

We have also examined problems that resulted from regulators simply failing to use the authority they had.

As the President's plan evolves, if it is not modified, the Federal Reserve essentially would be the direct regulator of most of the major financial institutions of the country.

There seems to be a consensus emerging among regulators and many in Congress on the need for a Council to address risks in the financial system.

We need to be thoughtful and deliberate in our approach, but we need to act soon.

Much of the responsibility for setting standards would remain with the Federal Reserve, which raises serious concerns given its failure in recent years to identify serious risks to our financial system.

When are you going to stop the bleeding?

The mortgage crisis is escalating, not rescinding.

We are not even making a dent.

You are asking the impossible.

Thank you very much, Mr. Chairman.

You can't get credit if you don't have a job.

We have got to move aggressively on both fronts.

All those wonderful programs that you are talking about mean absolutely nothing to the American people.

My perception today is this mortgage crisis is of the same scale in terms of threatening our economy and perhaps world recovery.

I guess we will have to bring back the draft, Jim.

There seems to be a recognition by all that further transparency is important, to get the data, to get the information.

We applaud your leadership in this effort, and we look forward to working with you and others so that we all get this right.

Well, we all wish you good luck because your luck will influence greatly the economy.

We commend Chairman Reed for his sensitivity to this issue as well.

And we are very fortunate because our second panel has provided excellent testimony from the vantage point and experience of market participants.

Chairman Reed, Ranking Member Bunning, and Members of the Subcommittee.

I appreciate the fact you seem to speak favorably of the approach of investment advisers.

I think just a comment. I think this approach of getting the information might also ultimately be beneficial to some hedge fund participants.

There are basically three approaches: one is to regulate the fund; two is to regulate the advisers; or three is to give the SEC the authority by regulation to set up rules for exempt entities under both statutes.