I want to commend you and Ranking Member Shelby for holding this hearing because, looking back over the last several years, there were many, many issues that had potential dire consequences to the financial system which were not examined…

But here, again, I think Senator Shelby's comments go right to the heart of what our job is.

A final question. I am concerned about the impact on municipal participants.

We have to assess a probability. And then we also have to, I think, probe, as I have tried to do...

We have to contemplate, particularly after 2008, things that seem so far removed from the day-to-day practice.

But here is the situation. You have a prominent fund that miscalculated, in the case of the experience in 2008...

So you could have essentially a system in which some are regulated and some are not.

One of the issues that was also raised by Senator Shelby is that your testimony about 300 essentially situations where the sponsor of the fund stepped in and provided capital...

That is a possibility, and specifically it is addressed by Congress in Dodd-Frank.

we are running out of time. The interest rate on subsidized student loans is set to double in just over 2 weeks. This will hit middle-class families hard at a time when they are dealing with the devastating effects of the most severe…

I want to commend you for all your efforts to assist veterans.

Our Nation's growing reliance on the National Guard and Reserves for operational duties here and overseas means that our warrior-citizens must have airtight reemployment rights and financial protections when they are called to the colors.

The Servicemember Housing Protection Act of 2012 would amend the Servicemembers Civil Relief Act (SCRA) to enhance the protections accorded to servicemembers and their spouses with respect to mortgages, and for other purposes.

The proposal that I am making advances several, I think, important improvements.

Since 1940, the Congress has recognized that men and women in the service of the United States deserve special protections.

I think they should be able to move without a termination fee on post when that housing becomes available.

This protection is not offered to a widow of someone who dies on active service.

I think this is a very important hearing because the issues that have been raised go right to the capability of large, complex international financial institutions to manage risk.

But that leaves us in a situation of how do we build in, because our responsibility--build in rules and regulations that prevent, as you would say, well-intentioned, extremely bright people from doing things that are very detrimental?

It seems that their model, their VaR model, was loosened up considerably, giving them the opportunity to engage in more risky activities.

And the irony to me is that if there was a good Volcker Rule in place, they might not have been able to do this because it clearly does not seem to be hedging customer risk or even the overall exposure of the bank's portfolio.

I think it also is a strong case, in my view, for a very clear but very strong Volcker Rule.

I do believe the people doing it thought that they were maintaining a short against high-yield credit that would benefit the company in a crisis.

So there is a possibility, in fact, if it is done correctly and proposed, which I hope it is, that it could have avoided this situation?

I have an amendment at the desk, and I ask unanimous consent to consider the amendment out of order. The Acting CHAIR. Is there objection to considering the amendment at this point? Hearing none, the Clerk will report the amendment. The…