Transcripts For CSPAN Capitol Hill Hearings 20130214 : vimar

CSPAN Capitol Hill Hearings February 14, 2013

And new guidelines on Cyber Security. Well get to jack lews confirmation in a moment. First the cbo director Douglas Elmendorf testimony. He warned of the sequester could cost 750,000 jobs. Could you tell me in terms of the negative Economic Impact of the sequester, the. 6 , what does that translate in point of lost jobs . Our estimate is that the sequester alone would reduce gdp growth this year by zero point six percentage points. It would lower that gdp at the end of the year. We think that would reduce by about 750,000 jobs. 750,000 jobs between now and the end of 2013, right . Right. That is a whole lot of jobs. We should be working overtime to prevent that kind of job loss. If you were to replace the deficit reduction through that austerity program, the cuts to the sequester with a plan that accomplishes the same amount of deficit reduction spread over the 10 year period, you would not have that hit on jobs . Right. Our analysis, the republican leader, mr. Cantor had it right last september when he said that if we allowed the sequester to take place, unemployment would soar. It would set back progress on the economy. He cited an estimate that this of kuester would cost 200,000 jobs in this that the sequester would cost 200,000 jobs in the state of virginia alone. We were able to prevent the sequester for the first few months through a balanced approach. That should be the model Going Forward. Just to be clear, there has been a lot of attention focused on the jobs lost because of defense cuts. He cut in the nondefense a on the dollar for dollar basis, does that equal the amount of jobs lost . It is quite similar dollar for dollar. The timing of economic effect depends on the timing in which defense spending and nondefense spending occurs. There could be some small differences. Basically, congressman, you are right. If the government is paying people to build battle shilps or structures, those will have comparable affects, dollar for dollar. But economy and on the output of jobs. You can watch all of this hearing on cspan 2 or any time at the cspan Video Library at cspan. Org. For more white house if of staff jack lew is the nominee to be treasury secretary. At his Senate Confirmation hearing, he was asked questions about his tenure at citigroup and his Cayman Islands investment. This finance committee is three hours and 20 minutes. This meeting will come to order. Before we begin, i want to recognize new members to the Senate Finance committee. Secretary brown, senator bennett, senator Robert Portman , senator bob casey. Welcome. We are honored to have you. Youll find the tradition of this committee is one that is very proud to Work Together. Im happy that you are here with us to help move that tradition forward at a greater and deeper rate. We deeply appreciate it. Less than two miles from where we sit today at the entrance of u. S. Treasury building that is a large, bronze statue. One would assume that the figure is alexander hamilton. Americas first treasury secretary. Look again. This 12 foot tall statue is of Albert Gallatin. The longest serving u. S. Treasury. In a to one, Thomas Jefferson asked gallatin to serve. In 1801, Thomas Jefferson asked gallatin to serve here in the place of treasury secretary is more than avarice and response will laborous and responsible than any other. What did he do . He established fiscal discipline that was necessary a country into a great world power. Gallatin also help orchestrate the louisiana purchase, doubling the size of the United States. His work is commemorated in gallatin county, montana and a beautiful Gallatin National forest in the rockies as well as the Gallatin River in missouri. When gallatin accepted the decision, it was noted at the time that he was placed in a situation of trust. Today we are here to consider the nomination of jack lew to the nations next treasury secretary. We are here to determine if he is worthy of the situation of trust. Jack was a long and distinguished career established in academia and on wall street. During one assistance, he helped during one of the periods Economic Growth in americas history. We will learn more about his record. No doubt that he is experienced. As gallatin said, there is no more laborous position than treasury secretary. Mr. Lew will have his work cut out for him. Our economy is on the road to recovery, but there are many twists and turns duri. Gdp will be cut in half. The debt to gdp will be stable for the next five years. The budget control act of 2011 and the end here fiscal year has made a difference. Progress has been made, but the job is not over. There are many tough decisions ahead of us. The first challenge is the sequester. Acrosstheboard cuts that will start in over two weeks. Then we quickly face a threat of government shutdown. Sequester will cut critical programs including medicare, world development, and rural education. We have worked together to prevent indiscriminate cuts and lasting economic damage. The state of the economy is still fragile. Unemployment rate rose slightly in january and is projected to stay high throughout 2013. These numbers are troubling. Combined with a more favorable deficit numbers, the unemployment figures show that we cannot take our eye off the ball. That is the economy and job creation. Mr. Lew, you need to concentrate on three areas to create Economic Growth. First, focus like a laser on job creation. Do not get distracted. As a leader of Economic Team, you must with and place ways to spark Economic Growth Area Unemployment is near eight percent. That is unacceptable. You need to develop new ideas to get a job creation and get rid of me less revelatory burdens. Restore stability to our nations capital. We need to get off of this roller coaster of crisis after crisis. These crises are frustrating of American People and it harms the economy. Help us achieve stability and fiscal policy as economy continues to repair itself after the financial meltdown in 2008. Thatll help give businesses and families certainty. Finally, we must simplify our tax code for individuals and businesses. We need to make the system fairer and help make u. S. Is this is more competitive in a global marketplace. As treasury secretary, you will be in a position to make reforms a reality. We will not need only your leadership, but your ideas and technical help. We are very serious about this. We will be counting on your deep experience to achieve comprehensive tax reform. Over the past few years, this committee has been moving steadily forward on tax reform. Become toox ratcode complex. The last tax code overhaul was in 1986. Our World Economy has changed drastically in the past three decades. I would tax code has not caught up. Our tax code is not caught up. This is not some academic exercise. Tax reform is a real opportunity to spark the economy and create more jobs. I expect you to be a partner as we tackle tax reform. Members of this committee will probably ask you some tough questions. That is our right and responsibility. It is our role. I will ask you to address my concerns job creation. Im confident that in the tradition of this committee, the questions will be respectful. If these questions focus on how to move our country forward and representing the people that we serve. Mr. Lew, welcome. I encourage you to embrace the challenge as you track your own path forward. Recognize a great responsibility that you have and make sure our government finances are sound and this competitive economy a. Thank you, mr. Chairman, and welcome mr. Lew. Senator schumer, one of our great leaders in the United States senate. Welcome to the new members of our committee on both sides. I think you will enjoy this committee. It is an important one. We look forward to working with all of you. Thank you, mr. Chairman. I want to thank mr. Lew. I look forward to hearing his testimony. I look forward to hearing about his back rent and qualifications for this. It is an important position. The u. S. Treasury secretary is charged with a variety of responsibilities. Mr. Lew, i know youre well versed in budget matters, but that is not the main responsibilities. I have a good understanding of your budget abuse, including your opinion that we need much more revenue to address our nations fiscal problems. I also know about the Obama Administrations relet dance, which i assume you share, to engage in structural Structural Reforms for the entitlement programs even though they are the main drivers of our debt and deficits. I do not share your views on some of these manners and neither do the American People, in my opinion. As a Social Security and medicare trustee, the treasury secretary cannot hope that these problems will go away. The treasury secretary has responsibilities that extend far beyond the budget. These response abilities include implementation of Financial Regulations and oversight of Financial Stability and Debt Management and tax election and oversight. The defense of the value of the u. S. Dollar. Assisting congress with its oversight responsibilities and to finish the oversight of entitlement trust funds. I understand your views on fiscal policy. I know far less about your knowledge and experience with these other areas. There are means that large amount of uncertainty in Financial Markets from the unknown aspects of dodd frank. Hundreds of dodd frank rulemaking requirements are still in the works or have not been proposed it. Meanwhile, lobbying continues with hundreds of meanings having occurred between banks and lobbyists on one hand and treasury and regulators on the other. Whoever becomes the next treasury secretary should have a firm grasp of the Financial Markets and our Financial System. Dodd frank assigns his fonts ability for assessments and warnings about threats to assigns responsibility for assessment and warnings about threats to Financial Stability. That is chaired by the treasury secretary. The secretary plays a key role in the International Financial spear. This is an area where we have seen a real lack of leadership from our administration. With no real us economic leadership, it is a vacuum. And we do not lead, other nations will. Recent Analysis Shows that china has surpassed that u. S. As the Worlds Largest trading nation. The president runs the risk of currency wars, which appears to be rising. It could put us back into a recession or worse. Currency policy is not enough. Without a good policy and a good the International Monetary system will continue to be a threat. Our future economic competitiveness depends upon the United States leading others to establish a fair and stable, transparent currency system based on market principles. I look forward to hearing your views about these important matters before the treasury. In addition, i understand that you have worked with managing director and chief operating officer of two units of citigroup. It is unclear what your exact role and responsibilities were there. So far you have indicated that you have coordinated on cooperations, technology, human resources, and maybe legal financial activities, but we know little about your knowledge of that committees activities of which you are the chief operating officer. Some of the units of activity included trading and sales and marketing of risky investments. If you knew about the marketing and sales of these investments, it would be instructive to know what you do. If you do not know, it would be instructive to find out why and find out what your responsibilities were during her years at ci years at citi. These are important questions. If you are confirmed if you are confirmed, you will be responsible for overseeing the implementation of the very practices undertaken by the city units that you once operated. For example, you will be responsible for coordinating a limitation of the socalled volkcker rule. You have stated that you support that rule. If you are to be confirmed, it could lead to an awkward situation in which your rule as chair you would effectively be saying, financial firms, do as i say and not what i did. These are not trivial matters. If the committee was given time to examine your records more carefully before the hearing, im sure many of these impressions may have been answered. We would have to explore some of these matters here today. Finally, i want to mention, i told you that i was very dissatisfied with the Treasury Departments level of responsiveness to our letters, both the chairman and mind, as well as letters from our colleagues. You pledged to made to maintain frequent consultation with members of this committee. I appreciate that promise. I want you, if confirmed, to be responsive in a timely manner. Welcome to the committee. Pleased to have you here. Thank you for your willingness to serve. Thank you for your past service. There is no question in my mind that you are a very bright and able person. Mr. Chairman, i look forward to an informative hearing. Thank you. Thank you, senator. Senator schumer. Mr. Lew, i would like to give you opportunity to thank you, mr. Chairman. I would like to introduce my family who is here today. My wife and my children are yo. Stand up so we could recognize you and show our appreciation. [applause] these jobs take a lot of understanding. It is timeconsuming. Senator schumer. Thank you, mr. Chairman. Thank you for the opportunity to introduce jack lew and for moving this nomination in a timely manner. Im delighted and proud to introduce to this committee my friend and great new yorker, jack lew. No matter how many years he stays in washington, jack, who grew up in queens, a neighboring borough from where i live and his wife who grew up in my congressional district, will always have new york in their bones. Im delighted to in dorset his nomination to serve as the next secretary of the treasury. To endorse his nomination to serve as the next secretary of the treasury. I do so heartily. He is renown for his managerial prowess and his common sense approach to solving tough problems. He is uniquely qualified to take the helm of treasury in these precarious, Economic Times as you so well outlined, mr. Chairman. Jack is no stranger to us. I met him there decades ago when i was a white find a congressman and he was a top aide for house speaker, tuple neil. We became friends tip oneill. We became friends. He taught us a whole lot. I know that tip a tremendous influence on jack. It is clear that he shares the same work ethic and sense of duty. He shares another thing bipartisanship. Speaker oneill was renown for sitting down with president reagan and trying to work problems out. Jack was heavily involved in that and continues to be. He is a bipartisan person who wants to be successful at working with both parties. You mentioned the issue with trust. There is no straighter shooter than jack lew. He is one of the most honorable , honest, and decent man in washington. When he gives you fax, they are back facts, they are backed up with research. From the time i knew jack when he started in tip oneills office, he would always outline both sides of the argument and give each without bias. He would tell you where he came down, but he always let you make your own judgment. That has propelled him to an extremely successful career that is that has made him qualified to become treasury secretary. He distinguished himself not only as a knowledgeable of the tax code in the federal budget, it also as an agile leader with a knack for operations. He rose to become a chief operating officer. In 1998, he was named director. When he left omb, it was the last time the federal government had a surplus. An unprecedented surplus of 236 billion dollars. It would not have happened without jack lews leadership, knowledge, and expertise. In 2009, he answered the call to Public Service. He returned to d. C. To become deputy secretary for managing resources. He helped secretary of state clinton transform the state department and honing his skills in the international arena. Skills that im confident will prove useful as he works to address the economic challenges he will be facing as treasury secretary. Jack spent the last few years serving the administration as director of open be and as white house chief of staff as director of omb and as white house chief of staff. He brought nonsecurity spending to its lowest level since Dwight Eisenhower sat in the oval office. On the fiscal cliff, he kept taxes low on the middleclass. At the same time, decrease the nations deficit by more than 700 billion. There are many subjects the treasury secretary must cover. Not any treasury nominee can have expertise immediately in all of them. The jack has an uncanny ability to dive into a subject, learn, study, and master it in a factual and nonideological way. I look forward to working with jack and the rest of the Economic Team as we continue to focus on protecting the middle class and combating our nations longterm economic challenges. Mr. Chairman, i am confident that this nominee has expertise and work ethic necessary to excel as secretary of treasury. He will not be an ordinary treasury secretary. He will be a great one in the mold of Albert Gallatin and alexander hamilton, another new y

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