Government Hearings - 2009

  • 2009 0114 - COP - Hearing - Modernizing America’s Financial Regulatory Structure - [PDF-180p, VIDEO-CSPAN]
    • (p72) - Statement of Joel Seligman, President, University of Rochester  
    • Second, the scope of any systematic review of financial regulation should be comprehensive.
      • This not only means that obvious areas of omission today, such as credit default swaps and hedge funds, need to be part of the analysis but also means, for example, our historic system of state insurance regulation should be re-examined as well as current securities laws exemptions for areas, including municipal securities.
      • The fact that the Federal Government provided over $100 billion to insurance giant AIG alone suggests that insurance regulation is no longer purely a state matter. 
  • 2009 0121 - GOV (Senate) - Financial Regulation: Where Were the Watchdogs? The Financial Crisis and the Breakdown of Financial Governance
    • [PDF-477p, VIDEO-?]
    • Senate - Committee on Homeland Security and Govenmental Affairs 
  • 2009 0204 and 0205 - GOV (House) - Hearings to Review Derivatives Legislation
  • 2009 0210 - GOV (House) - Extraordinary Efforts by the Federal Reserve Bank to Provide Liquidity in Current Financial Crisis
  • 2009 0305 - GOV (House) - Perspectives on Systemic Risk
    • [PDF-254p, VIDEO-youtube-Part 1of 2 - Bad Copies] - <mp3, mp4> - R
    • Clip - Bean/ Vaughan - Solvency, did AIG need the money?
    • (p35) - Ed Royce (R-CA) - Earlier, Mr. Bachus alluded to this notion that the underwriting side of AIG overseen by the State insurance regulators was somehow walled off from the abstract securities lending division. Unfortunately, news reports, such as the Wall Street Journal article that was dated October 10, 2008, which I would like to insert into the record, detail the inaccuracy of this perception.
      • Let me just read from the article from the Wall Street Journal: ‘‘Securities lending has long been a reliable side business for life insurers, approved by state regulators. But Moody’s warned in April about the risks that insurers were taking related to these programs. - 
      • <WishList?> - 2008 1009 - WSJ - Further Loan To AIG Shows Fed Miscalculated Risks, By Liam Pleven, Carrick Mollenkamp and Craig Karmin - [link]
        • Doug Slape, Texas Insurance Commission
    • House - Committee on Financial Services - Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
  • 2009 0305 - GOV (Senate) - American International Group: Examining What Went Wrong, Government Intervention, And Implications for Future Regulation, Government Intervention and Regulation of AIG (CSPAN)
    • [PDF-72p,  VIDEO-CSPAN]
    • [Senate-page] - <mp3, mp4> - R 
    • Testimony
      • Eric Dinallo (NAIC / NYSID) - 8p
    • 14:40 - Senator Shelby -
      • Significant losses in AIG’s State-regulated life insurance companies also contributed to the company’s collapse.  (p4)
      • More than $17 billion in Federal assistance has been used to recapitalize the State-regulated insurance companies to ensure that they are able to pay their policy holders' claims.  (p5)
    • 33:00 - Eric Dinallo (NY / NAIC) - Securities Lending didn't have anything/much to do with AIG Collapse, run on aig life, <Reputational Risk>, 
    • Securities Lending, RMBS, Liquidity, <C-3, 1980 SOA Paper>, Run on AIG, 
    • Scott Polakoff - OTC
    • (p25) - Mr. KOHN. Our authority under the Federal Reserve Act is to make loans.
      • We thought it was a short-term liquidity situation— in mid-September, this is what we thought—and that if we could bridge this situation with liquidity, then the company could make the adjustments to keep itself a going concern.
      • It turned out that the problems were deeper...
    • Senate - Banking, Housing, and Urban Affairs
  • 2009 0312 - GOV (House) - Mark-to-Market Accounting: Practices and Implications
    • [PDF-420p. VIDEO-CSPAN]
    • ACLI Letter (p308-309)
    • ABA Letter (p310-
    • House - Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
  • 2009 0317 - GOV (Senate) - Perspectives on Modernizing Insurance Regulation
    • [PDF-160p, VIDEO-Senate-Error] - <mp3, mp4> - R-yes
    • J. Robert Hunter, Director of Insurance, Consumer Federation of America - Testimony - 47p - Reserve Relief, Guaranty Funds
    • Frank Keating, President and CEO, The American Council of Life Insurers
    • Senate - Committee on Banking, Housing and Urban Affairs
  • 2009 0318 - GOV (House) - American International Group’s Impact On The Global Economy: Before, During, And After Federal Intervention, Federal Aid to AIG Insurance, Regulators Panel (CSPAN)
    • [PDF-380p,  VIDEO-CSPAN]
    • OTS, Joel Ario (Insurance Commissioner), S&P Ratings Org - Rodney Clark (Reputational Risk - Insurance Subsidiaries)
    • House - Financial Services Committee - Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
      • [PDF-380p- <mp3, mp4> - R
      • (p31) - Gary Ackerman (D-NY): I just want to make sure that I understand it.
        • And I’ll try to explain my understanding in what my mother would call by giving you a ‘‘for instance.’’
      • Edward Libby testified about operations and business practices at American International Group (AIG) before, during, and after federal intervention.
        • 2:15:28 - Carolyn Maloney:  bad regulatory decision?
        • - Liddy: yes
        • all life insurance companies would have been in trouble... asset prices....capital markets
    • House - Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
  • 2009 0318 - GOV (House) - Federal Aid to AIG Insurance - Regulators Panel Continuation
  • 2009 0318 - GOV (Senate) - Lessons Learned in Risk Management Oversight at Federal Financial Regulators - [PDF-181p VIDEO-Senate-page
    • Senate - Banking, Housing, and Urban Affairs Committee - Subcommittee on Securities, Insurance, and Investment
  • 2009 0319 - GOV (Senate) - Troubled Asset Relief Program
    • [PDF-74p, VIDEO-?)
    • Senate - Comittee on Ways and Mean - Subcommittee on Oversight of the Committee
  • 2009 0324 - GOV (House) - Oversight of the Federal Government's Intervention at American International Group
    • [PDF-91pVIDEO-CSPAN] - <mp3, mp4>
    • Geithner and Bernanke Testimony on AIG Bonuses 
    • House - Committee on Financial Services
  • 2009 0325 - GOV (House) - Roles and Responsibilities of Inspectors General in Financial Markets Regulatory Agencies
    • [PDF-98p, Video-YouTube-Several Parts - todo
    • House - Subcommittee on Government Management, Organization, and Procurement of the Committee on Oversight and Government Reform
  • 2009 0326 - GOV (Senate) - Enhancing Investor Protection and the Regulation of Securities Markets: Part 2
    • [PDF-287p
    • Video-Part 1-CSPAN
    • Video-Part 2-CSPAN
    • Video-Part 3-CSPAN
    • Testimony of Barbara Roper, Director of Investor Protection, Consumer Federation of America - 35p
      • (p31) - We also agree with NAIC Chief Executive Officer Therese Vaughn, who said in testimony at the same hearing,* “In our view, an entity poses systemic risk when that entity’s activities have the ability to ripple through the broader financial system and trigger problems for other counterparties, such that extraordinary action is necessary to mitigate it.” 
      • *same hearing - 2009 0305 - GOV (House) - Perspectives on Systemic Risk - [PDF-254p
    • Further Examining What Went Wrong In The Securities Markets, How We Can Prevent The Practices That Led To Our Financial System Problems, And How To Protect Investors
  • 2009 0402 - GOV (House) - The Collapse and Federal Rescue of AIG and What it Means for the U.S.
  • 2009 0506 - (GOV - Senate Banking) - Regulation and Resolving Institutions Considered "Too Big to Fail"
  • AIG Collapse and Rescue, Liddy Testimony
    •  [VIDEO-CSPAN] - <mp3, mp4
    • 2:38:50-END
    • 2:40 - Carolyn Maloney:  problem with life insurance? Federal Reserve Funds used for AIG Life Insurance Division?
    • Liddy:  Yes, Regulated and Solvent, Created a hole.  Plugged the Hole with Federal Reserve Funds.  18-20 Billion
  • 2009 0514 - GOV (House) - How Should the Federal Government Oversee Insurance?
    •  [PDF-194p,  Video-(Part 2 of 2)-youtube-Bad Copies) - <mp3, mp4> - R
    • Baird Webel, J. Robert Hunter,
    • Baird Webel -
      • Baird Webel - Testimony - 12p
      • Baird Webel - 3:30 - What is Systemic Risk? So is an Asteroid a financial Risk?  What does a Systemic Risk Regulator have to do about this?  <Bonk:  Atomic Bomb 1950's Newspaper Article>.  Who would represent the Insurance Industry on a systemic risk panel?
    • House - Committee on Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
  • Insurance and Systemic Risk)
    • [PDF-181p, VIDEO-C-SPAN] - <mp3, mp4> - M
    • approx. 21:00 - Melissa Bean - AIG's Problems weren't just in the Financial Products area, also was in the Securities Lending Department, Activities, products, 
    • approx. 29:00 - European Union - Peter Skinner
    • 1:26 - Patrick Baird (ACLI) 
    • 1:27 -  Michael Mcraith (NAIC) 
    • 1:27:30 - Michael Capuano (D-MA) 
    • Testimony - Michael T. McRaith - Systemic Risk and Insurance -16p
    • House - Committee on Financial Services - Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
  • 2009 0624 - GOV (House) - Regulatory Restructuring: Enhancing Consumer Financial Products Regulation
    • [PDF-286p, Video?] - <mp3, mp4> - R
    • Gary Hughes (ACLI), NAIC, Elizabeth Warren (Professor)
    • House - Committee on Financial Services
  • 2009 0910 - GOV (House) - The Risks of Financial Modeling: VAR and the Economic Meltdown
    • [PDF-155p, VIDEO-YouTube]
    • Nassim Taleb
    • House - Committee on Science and Technology, Subcommittee on Investigations and Oversight
  • 2009 0924 - GOV (Senate) - Systemic Risk and Resolution Issues / Experts’ Perspectives on Systemic Risk and Resolution Issues
    • [PDF-128p, VIDEO-CSPAN] - <mp3, mp4
    • Paul Volcker - ".....insurance companies, which I would say parenthetically I hope better regulatory systems will be developed, maybe not as part of this legislation but next year."  (p7)
    • Paul Volcker - "I would hope this committee would look at the question of national charters for insurance companies and bring them under—at least the big ones—under a framework so that something like AIG with similar problems can’t arise in the future."  (p19)
    • Mr. PERLMUTTER. How do we resolve insurance companies? Do you know? We liquidate them through the insurance commissioner.  (p49)
    • Senate - Committee on Banking, Housing, and Urban Affairs
  • 2009 0924 - GOV (House) - Recent Innovations in Securitization
    • {PDF-123pVIDEO-archive.org]
    • Written statement of Joseph M. Belth ...... p103
    • House - Committee on Financial Services - Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
  • 2009 1006 - GOV (House) - Capital Markets Regulatory Reform: Strengthening Investor Protection, Enhancing Oversight of Private Pools of Capital, and Creating a National Insurance Office
  • 2009 1009 - GOV (House) - (CSPAN) - Financial Services Legislation Markup 
    • [PDF-?, VIDEO-CSPAN]
    • 03:44 - Barney Frank - There have been a lot of Conversation with the National Association of Insurance Commissioners and the Agents. 
  • 2009 1028 - GOV (House) - Executive Compensation: How Much Is Too Much? - aka Executive Pay and TARP-Funded Companies
    • [PDF-271p, VIDEO-CSPAN]
    • William K. Black
    • House - Committee on Oversight and Government Reform

Systemic Regulation, Prudential Matters, Resolution Authority, and Securitization

  • 2009 1029 - GOV (House) - Systemic Regulation, Prudential Matters, Resolution Authority, And Securitization, Financial Industry Regulations, Federal Regulators (CSPAN)
    • [PDF-392p, VIDEO-CSPAN]
    • (p51) - Mr. SULLIVAN.  (CT-Insurance Commissioner) - And I would point to the area that we regulate, the dominion that we have authority over, insurance has very high capital standards. And as a consequence, we have not seen failures within the insurance industry. I can count on one hand over the last 3 years the insurance affiliates that have failed during the most significant upheavals in the financial market while we have seen hundreds of banks fail during the same time.
      • Mr. MANZULLO. (R-IL) - Then some witnesses here want to pool the entire insurance industry.
      • Mr. SULLIVAN. And we are very skeptical about any grab of such authority when we have a proven system that works.
  • 2009 1029 - GOV (House) - Systemic Regulation, Prudential Matters, Resolution Authority, And Securitization,  Financial Industry Regulations, Business Interests (CSPAN)
    •  [PDF-392p, VIDEO-CSPAN]
    • Systemic risk - SIFI-
    • 23:00 - MetLIfe - Activities based risk vs Size Risk. Example LTCM was not large <Bonk: Executive Life>
  • 2009 1029 - GOV (House) - Systemic Regulation, Prudential Matters, Resolution Authority, And Securitization, Secretary Geithner on Financial Industry Regulations (CSPAN)

  • 2009 1105 - GOV (House) - Markup of H.R. 2609, Federal Insurance Office Act, Financial Stability Improvement Act of 2009, and H.R. 3904, Overdraft Protection Act