▶ 0:12:45Chair Scott: This hearing will come to order. Today, we have an opportunity to start with referring the four well-qualified nominees before us today, paul atkins, jonathan gould, luke pettit, and marcus molinaro. While the title of this committee is the senate banking, housing, and urban affairs committee, I view our work as all encompassing.
▶ 0:13:15Chair Scott: We start with a table of problems of issues causing so much anxiety for hard-working american families. Housing affordability, increasing access capital, bolstering our economic and national security, impact everyone's wallet. The biden administration stifled innovation and economic growth through heavy-handed, ideological approach regulation.
▶ 0:13:45Chair Scott: Nowhere was this clear than in the security and exchange commission. Paul atkins has the experience necessary to return the sec to its core mission. Mr. atkins is a former sec commissioner has dedicated his career to assuring our capital markets remain the envy of the world.
▶ 0:14:10Chair Scott: He will roll back the biden administration's disastrous policies, will promote investment opportunities, and provide long overdue clarity, ensuring that american innovation does not fall further behind, and, frankly, let's reverse it and become the envy of the world there, too.
▶ 0:14:38Chair Scott: I look forward to working with Mr. -- Mr. atkins to reopening. It will include access to capital nation like in the regulation, for small and medium sized companies, pursue new avenues for hard-working americans to invest in their communities. Next we have jonathan gould. He was nominated as the comptroller of the currency. Mr.
▶ 0:15:07Chair Scott: Gould is no stranger to the occ, he understands the critical mission, ensuring the safety and soundness of our banking system, and entering banks provide their access to financial services, not pushing a far left political agenda. First, under president obama, we saw operations fall.
▶ 0:15:33Chair Scott: Then, under president biden, weaponized the authority, politically disfavored industry, and most recently with cryptofunds. Mr.
▶ 0:15:47Chair Scott: Gould, I hope you will turn the occ to its true purpose, targeting and supervising banks to ensure they serve all credit worthy customers, not just those who fit a particular mold. Before I continue, let me thank the acting occ comptroller.
▶ 0:16:14Chair Scott: He has done a great job, forming the foundation of the strong, since progrowth report into which we need to return there notably, Mr. hood has removed risk consistent with the occ banking examiners, and extracted examiners are no longer examine this.
▶ 0:16:39Chair Scott: Luke pettit, nominated to be in assistant secretary of the treasury, brings key experience to this role, including serving on this committee. Mr. pettit understands the challenges facing american families and businesses, and he knows how to build consensus and compromise when necessary to solve tough financial issues. Finally, former congressman marcus molinaro, nominated for federal transit administrator.
▶ 0:17:07Chair Scott: He brings critical experience from his time on the house transportation committee and a long career in local government, making him well-qualified for this role. His experience as executive reinforces his belief that challenges require local solutions.
▶ 0:17:31Chair Scott: I am confident that he will propose commonsense sense, pragmatic solutions to the agency, ensure that our mass transit is effective and safe and connects communities with new opportunities.
▶ 0:17:53Chair Scott: I firmly believe these nominees will unleash a golden age of prosperity, where families will once again afford to buy a home, save for the future, and achieve the american dream. Let's get to work, let's get these noms confirmed, and let's make america great again. Thank you. Ranking member warren.
▶ 0:18:18Sen. Warren: Thank you, Mr. chair. We have only 80 seconds per nominated question each of them. I believe we need more time, longer question periods, and multiple rounds of questions. Since that is not happening, I will jump right in.
▶ 0:18:36Sen. Warren: Copresidents trup and -- trump and musk are in the middle of a big, laid-off thousands of financial regulators and just last week they tried to handcuff the federal trade commission by attempting to fire the two democratic commissioners.
▶ 0:18:57Sen. Warren: This is plainly illegal, and if it is allowed to stand, it will do grave damage to millions of families that will get scanned, all for the benefit of donald trump's campaigndom. Why are they trying to define the federal government? Elon musk gave us one good example.
▶ 0:19:16Sen. Warren: He said he can force his new company, x money, to "become half of the global financial system." when financial regulators like the cfpb and the sec enforce the law, elon should be stopped cold, and that is why it president trump, elon musk, and the doge team are taking a chainsaw to the people in government who enforce the laws.
▶ 0:19:47Sen. Warren: They want to make themselves even richer and more powerful. So apart from the bread-and-butter policy questions I have for these nominees under normal circumstances, I have very serious concerns about their willingness to aid and abet illegal ransacking of our government. Mr. molinaro, if confirmed, you will serve as the head of the federal transit administration. I know you believe in the mission of the agency that you want to lead.
▶ 0:20:18Sen. Warren: In our conversation, you promised to advocate within the administration for public transportation, and you pledged to advocate for the fta's career staff and top line workers at our transit agencies. We need a strong fta that can deliver projects on time so riders in boston and charlston and your hometown have better, safer service.
▶ 0:20:49Sen. Warren: Mr. pettit, you have been nominated to be the assistant secretary treasury institution, which is responsible for coordinating federal regulatory and consumer policy, monitoring the insurance market and protecting critical infrastructure. I am concerned that you intend to support the trump administration's next round of big bank the regulation and bailouts, while elon musk's doge tightens its grip on the treasury department.
▶ 0:21:21Sen. Warren: Mr. gould, you would serve as comptroller of the currency, which is responsible for ensuring safety and soundness of the national banking system and supervising some of the biggest banks in the country. Unfortunately, your track record, including as chief counsel at the occ during the first trump administration, and as a lawyer for the big banks, suggests that you may see this new role as a new purge to help out your wall street friends by further weakening bank
▶ 0:21:54Sen. Warren: Regulations and by letting big banks off the hook when they violate the law. And then there's Mr. atkins, who is the nominee to be chair of the securities and exchange commission. It is the sec's job to ensure that our capital markets remain an engine for economic growth and innovation, that requires a stamping out fraud and self-dealing in our markets, so that giant corporations don't scam average investors out of their retirement savings.
▶ 0:22:26Sen. Warren: Mr. atkins has spent almost his entire career helping billionaire ceo's like sam bankman-fried, who committed one of the biggest financial fraud in U.S. history, as the ceo of the failed crypto platform ftx. He has been working with those folks to help them get even richer. In the six years that Mr.
▶ 0:22:47Sen. Warren: Atkins was not siphoning millions of dollars off clients like sam bankman-fried, he was a commissioner it at the sec in the lead up to the 2008 financial crash, when he voted to loosen the reins on big investment banks like lehman brothers and bear stearns. Mr. atkins has an almost perfect track record.
▶ 0:23:15Sen. Warren: He got pretty much everything wrong in the run-up to the biggest financial crash since the great depression. That is not a record that deserves promotion. We have a lot of ground to cover today, Mr. chairman.
▶ 0:23:28Chair Scott: Senator crapo, you are now recognized.
▶ 0:23:34Sen. Crapo: Thank you, Mr. chairman. It is my honor to introduce. The goal -- introduce jonathan gould, to be comptroller of the currency. Jonathan has spent nearly 24 years in the financial services industry, including serving as my chief counsel, when I was the chairman of this committee.
▶ 0:23:53Sen. Crapo: From 2018 to 2021, he served as the occ senior deputy controller and chief counsel, where he led the law and licensing department, played a significant role in managing the entire agency, and oversaw the implementation of the economic growth act of 2018.
▶ 0:24:11Sen. Crapo: In addition to public service, his significant private sector experience as a consultant and lawyer, as recently in the locker room of jones bay, which will give him valuable perspective when considering the costs of potential rules. And in addition to this impressive background, jonathan is also well-liked and respected by colleagues and has the demeanor and character to be a n effective control.
▶ 0:24:44Sen. Crapo: President trump has made an excellent nomination, and I look forward to supporting his nomination.
▶ 0:24:46Chair Scott: Senator hagerty, you are recognized for Sen.
▶ 0:24:51Hagerty: Thank you, Mr. chairman, and it is a great honor to be with so many nominees today could I have the particular pleasure to introduce a long time friend of mine. We were roommates in law school. Actually, when I talked to president trump about call, I begged him not to hold that against paul, and he certainly did not. As I said, I've known him for a very long time good since before I met paul, I knew about him.
▶ 0:25:18Hagerty: He has been known forever for his character, for his intellect, and his unrelenting work ethic. Today, those qualities are going to serve the american people exceptionally well. Given the many years of private practice and prior service as commissioner, paul has developed an unmatched understanding of financial markets and the regulatory challenges.
▶ 0:25:45Hagerty: I've known paul not only as a friend but as a client, as I've called paul and his team in to help the companies have invested in navigate some of the great challenges of the financial services regulatory environment, and his skill has been unwavering. Paul knows better than anyone that our nation's global competitiveness by the mentally rests on the strength of our capital markets. He is a true public servant and a great american.
▶ 0:26:16Hagerty: I've had the opportunity to meet his three sons, two of them who are here today, that he and sarah have race together, you will know that paul is of the highest caliber and character. Our nation deserves a man of paul's caliber at the sec. I urge all of my colleagues to support his nomination. Thank you.
▶ 0:26:40Chair Scott: Ms. britt.
▶ 0:26:43Sen. Britt: Thank you, chairman scott and all of my colleagues on the committee, I appreciate the opportunity to introduce the nomination to be the chair of the federal transit administration, and my friend, marcus molinaro. We served as jurisdiction, and I'm particularly honored to welcome you to this committee today. I want to thank you for your willingness to serve and oversee so many important issues.
▶ 0:27:13Sen. Britt: Mark brings to this role a rare glimpse of executive experience, bipartisan leadership, and an unwavering commitment to public service.
▶ 0:27:26Sen. Britt: Given his experiences, marc possesses the essential qualities for this role, a proven ability to build consensus on both sides of the aisle, and a strong understanding of the complex transportation policies both at federal and local levels.
▶ 0:27:47Sen. Britt: As a former county executive of dutchess county, new york, and as a member of congress, he has demonstrated time and again how to deliver real results for community. Both of them. Marc understands transit is not just about the things in rail line, it is about connecting americans through opportunity and ultimately helping them achieve their american dreams.
▶ 0:28:14Sen. Britt: He also knows firsthand the importance of thoughtful and effective investment in infrastructure, that supporting economic growth and championing the lives of everyday americans and working families should be the priority. I am confident that under marc's leadership, the federal transit administration will prioritize safety, innovation, and accountability, and will ensure that the transit infrastructure serves all americans.
▶ 0:28:44Sen. Britt: It is my honor to introduce marc molinaro today, and I urge this committee to confirm his nomination.
▶ 0:28:51Chair Scott: Senator hagerty.
▶ 0:28:55Sen. Hagerty: Thank you, Mr. chairman. And again, I hope everybody sitting along the walls here today takes special note, because all of the staff has done such a wonderful job of supporting our efforts, and today it is my great privilege to introduce one of my staff, someone who I think the world of, luke pettit. For more than three years, luke has been an indispensable member of my staff, and on so many levels, he has not only been a great advisor but a wonderful friend.
▶ 0:29:25Sen. Hagerty: His service at the federal reserve and the united states senate has given him a deep understanding of financial institutions and of our policies. To unlock our economy's full potential, we need leaders who will maximize the competitiveness of our financial system. For this task, there is no one better suited than luke pettit. Beyond his qualifications, louk is a leader in the truest sense, and louk them on a very personal level, I want to thank you for the leadership you have provided to my sons.
▶ 0:30:02Sen. Hagerty: It's not merely what he knows but how he carries himself, he carries himself with humility, with dedication to the mission at hand. This kind of leadership is exactly what our government needs. Louk will bring his exceptional commitment and capability to the role that he is before this committee for today, and I urge my colleagues to support his nomination. Thank you.
▶ 0:30:26Chair Scott: Thank you, senator hagerty good will the nominees please stand? I will swear you in. Please raise your right hand. Do you swear or affirm that the testimony you are about to give us truth, the whole truth, and nothing but the truth, so help you god? Do you agree to appear and testify before any constituted committee of the senate? Thank you very much. Your written statements will be made part of the record in its entirety.
▶ 0:30:56Chair Scott: Please give your oral comments to five minutes, and I will hold all of us to five minutes as well. We will start with Mr. atkins. You are recognized for your five minutes. Hit your microphone button as well.
▶ 0:31:18Mr. Atkins: Thank you, Mr. chairman, ranking member warren, members of the committee. Thank you for the opportunity to be here today as president trump's nominee to be chairman of the united states securities and exchange commission. I've greatly enjoyed meeting with many of you and your staff over the past few weeks, hearing the priorities for the sec and the united states financial markets.
▶ 0:31:42Mr. Atkins: I look forward to working with the members of this committee to pursue -- protecting investors, protecting a fair, orderly, efficient market, and facilitating our capital mission could I need to thank senator hagerty for the warm and generous words of introduction, and he summarized, thank you very much.
▶ 0:32:07Mr. Atkins: I'm grateful to my family members who are here today, sarah, my dear wife of 35 years, and my sons stuart and henry, and I cannot leave out my third son, peter, who is watching this hearing from the west coast. Service is not without challenge, and I appreciate your encouragement and support. To president trump, thank you very much for the trust and confidence you have placed in me to lead this agency.
▶ 0:32:34Mr. Atkins: With my fellow commissioners and members of this committee and sec staff, I look forward to working to ensure that the united states is well-positioned to seize on the economic opportunity that president trump's leadership and progrowth policies have inspired. I am fortunate to have served as an attorney fellow and ultimately chief of staff.
▶ 0:33:03Mr. Atkins: I served as counselor to chairman arthur levitt after his appointment by president clinton. From 2002 to 2008, I was honored to serve as an sec commissioner. I advocated for greater transparency at the agency at that time and emphasized the best cost-benefit analysis when considering new regulations. I thoroughly enjoyed working with my fellow commissioners and staff and tackled fiscal challenges.
▶ 0:33:28Mr. Atkins: After my term at sec concluded, just before the subprime mortgage crisis of 2008, the senate called me back to serve on a congressional oversight panel, where I had the pleasure to work with then chair and now senator and ranking member warren during a very crucial time.
▶ 0:33:47Mr. Atkins: In the private sector, I'm ceo of a strategy risk management compliance consultancy in new york, chicago, and washington. My time in public service and private sector has allowed me to seek firsthand how regulation, including those at the sec, affect markets.
▶ 0:34:11Mr. Atkins: We can stoke innovation or burden businesses' ability to serve their customers. Implementation of regulation is therefore crucial. It's one thing to write a regulation, quite another for it to achieve its goal. Regulation should be smart, effective, and appropriately tailored within the confines of the regulators' statutory authority.
▶ 0:34:40Mr. Atkins: In short, clear rules of the road benefit all market participants. Unfortunately, lawyers do not speak the same language as business people, compliance professionals, and I.t. Staff, but take knowledge and experience to translate and anticipate the issues that inevitably arise among these various professional tasks of implementing regulation appropriately.
▶ 0:35:07Mr. Atkins: The breadth and depth of my combined experience over the past decades will inform my approach, if fortunate enough to be confirmed by the senate. It takes industry experience and focused application to ensure customers and investors of financial services firms benefit from efficient, effective, and well-designed regulation.
▶ 0:35:29Mr. Atkins: Our goal at the sec should be to facilitate these efforts to analyze their effectiveness, and use their enforcement power if necessary to regulate -- to rectify action. Since 20, live led industry efforts and best practices for the digital assets could I seen how ambiguous and nonexistent regulation of digital assets create uncertainty in the market.
▶ 0:36:00Mr. Atkins: My chairmanship will be the work of my commissioners and congress to bring digital assets to a rational and principled approach. This is a critical moment for our economy. Entrepreneurs, businesses, and individuals across the globe are eager to invest in america, now that president trump is at the helm.
▶ 0:36:21Mr. Atkins: If the current regulatory environment for our financial system often punishes success, unclear, overly politicized, complicated, and burdensome regulations stifling wild flooded with disclosure, the opposite of helping them understand the true risks of investment. It is time to reset priorities and return to the sec.
▶ 0:36:49Mr. Atkins: I'm eager to get to work for america's markets investors. Should I be confirmed, my goal is to ensure that the united states is the best and most secure place in the world to do business, and for americans to invest their hard earned dollars, to save and provide for the future. So, thank you, ladies and gentlemen, and I look forward to your questions.
▶ 0:37:08Chair Scott: Mr. gould, you are recognized for five minutes.
▶ 0:37:11Mr. Gould: Thank you, chairman scott, ranking member warren, and members of the committee. And thank you, senator crapo, for the very kind introduction. It is an honor to appear before you today as president trump's nominee to be comptroller of the currency. I'm grateful to the president and secretary besson for their trust and confidence.
▶ 0:37:31Mr. Gould: It confirmed, I look forward to promoting broad and sustained economic growth that I would like to thank my family and friends for support throughout the process, and I especially thank my wife piper and my sons, christopher, timothy, and
▶ 0:37:52Chair Scott: Chair scott: thomas, for their love and patience. It's a pleasure to be back in his hearing room. It has been 19 years since I last set before this committee. I work for then senator richard shelby, and the committee was marking of a banking bill that would ultimately become law. My job was to respond to any number of questions about the bill posey provisions or proposed amendments. I remember distantly the -- distinctly the awe I felt sitting before this committee could I feel the same way today.
▶ 0:38:17Chair Scott: I'm here today, because president trump was a vision of a national banking system and the agency that has me division a reality over its 162-year history. The occ chartist banks, and implement the regulatory framework in which they operate, and ensures their safety and soundness all within the parameters set by congress for the national banking system is today one of the crown jewels of american finance, but neither it nor its continued relevance should be taken for granted.
▶ 0:38:43Chair Scott: Nor should we ever forget that this system exists not for itself but rather to support the U.S. economy and the financial aspirations of all of us that constitute it, from an entrepreneur seeking to open a bank account, to the large U.S. corporations hedging of interest rate risks. If banks are to serve their role supporting the U.S. economy, they must be allowed to engage in prudent risk-taking.
▶ 0:39:08Chair Scott: Late in the years since 2008, bank regulators have come at times, tries to eliminate rather than manage risks, frustrating the ability of banks to fulfill their function. This approach to risk management has implications to the cost and availability of credit, the system was the ability to absorb shocks, and its adoption of technology and innovation.
▶ 0:39:32Chair Scott: I've spent my entire professional career and half of my life studying, implementing, or advising on financial services galatian as a lawyer, senate staffer, consultant, and regulator. I have twice served as a regulator to this committee, both before and after the 2008 financial crisis, including most recently as its chief counsel under then chairman crapo. In these roles, I assisted the committee it is important oversight of agency I've now been nominated to lead.
▶ 0:40:05Chair Scott: As the occ senior deputy comptroller and chief counsel, I served under four different agency heads, spanning the first trump and biden administration's. I led the occ's efforts to implement one of his committee's most significant pieces of recent banking legislation, the economic bills act 2018 and the regulatory accident required. Hoping to get our system operating during the covid-19 shutdown of our economy.
▶ 0:40:29Chair Scott: My time in the private sector advising firms on regulation and risk management will also be an asset to the occ should I be confirmed. Seeing their real-world impact that regulations have on financial services firms are all guided, a useful perspective for any would-be regulator.
▶ 0:40:49Chair Scott: It confirmed to leave the occ, my top priorities would be ensuring national banks support economies, depoliticize the banking system, and embracing innovation within the agency and the banking system. I will do everything in my power to ensure the continued relevance of our national banking system and its ability to support our national economy, consistent with the president was a vision. Thank you for your time today. I look forward to answering your questions.
▶ 0:41:21Chair Scott: Well done. Mr. pettit?
▶ 0:41:26Mr. Pettit: Thank you, chairman scott, ranking member warren, and the distinguished members of the committee. I would also like to thank your staff, many of which have the pleasure that I've had the pleasure of calling my colleagues over the past three years. And I also want to thank senator hagerty.
▶ 0:41:47Mr. Pettit: It is an honor to be nominated for this position, and I'm grateful to president trump and secretary bessent for the faith they have placed in me to carry out the important duties of this role. I would not be here today if it were not for the support of my family, several of whom are here today. I'm glad to have the support of my parents, john and andrea, and my brothers, mark and matthew can from an early age, my parents instilled in me an appreciation for the best opportunities of unique situations.
▶ 0:42:18Mr. Pettit: My mother was born a few miles away from where our first treasury secretary, alexander hamilton, grew up. She immigrated to america at age 21, opening doors and opportunities never possible in other countries. My father grew up in a turkey farm in rule washington state, and his father's family was able to persevere and rebuild after they lost everything in the great depression in appalachia. With deep appreciation of the opportunities that this country gave them, they raised three kids, all of whom who heeded the call of public service.
▶ 0:42:50Mr. Pettit: My own public service began at the federal reserve, were I worked on advisory and monetary policy matters. After a brief stint in the private sector, I joined the senate, first on the banking committee and now with senator hagerty as his senior policy advisor.
▶ 0:43:08Mr. Pettit: These experience taught me a lesson fit our financial system in the abstract may drive investment in economic growth, but in the truest and most important sense, the financial system supports the lives of all americans and remains the pursuit of the american dream. From buying a home or starting a business to accessing credit and saving for retirement, a stable system ensures every individual can build a future for their family.
▶ 0:43:39Mr. Pettit: This position carries the important responsibility of promoting the strength of the financial sector that makes all of this responsible, and this is not a responsibility that I take lightly. This role also involves guiding treasury's efforts through critical areas such as education, community development, and cybersecurity. . As is the case in my current role here in the senate, it requires balancing the institutions, both small and large, but above all, ensuring the interests of the american people are put first.
▶ 0:44:07Mr. Pettit: If confirmed, I will work alongside the members of this committee to uphold the safety and soundness of our financial institutions and support a financial sector that fosters economic growth, freedom, and opportunity for all americans. Thank you once again for the privilege of appearing before you here today, and I look forward to answering your questions.
▶ 0:44:26Chair Scott: Thank you. Mr. molinaro?
▶ 0:44:33Mr. Molinaro: Thank you, Mr. chairman. That's a high standard to meet.
▶ 0:44:40Chair Scott: As a congressman as well as a senator.
▶ 0:44:44Mr. Molinaro: Indeed. I reclaim my time, Mr. chairman. [laughter] chairman scott, ranking member warren, and members of the committee, thank you for the time. I'm grateful for the time you've given me. I'm honored and humbled to appear before you today is president trump's nominee for federal transit administrator. I'm grateful to the president for his trust in me and to sec.
▶ 0:45:07Mr. Molinaro: Sean duffy for his comfort since -- his confidence in my leadership yet I would also like to thank each of you, republican and democrat, for service for our country. Public service, as you know, has been the work of my life. I've had the privilege of serving at every level of government, local, county, state, federal. As a member of congress, I worked to build consensus, bridge device, and solutions that matter to people.
▶ 0:45:34Mr. Molinaro: As county executive, I led through crisis and managed complex budgets and embraced accountability. Not for its own sake but to ensure we honor the trust the taxpayer's in each of us. I've also learned that decision-making does indeed matter, and one size rarely fits all.
▶ 0:45:50Mr. Molinaro: I'm joined today by my son jack, and I would like to extend my love to my wife and our children , and they'll sacrifice much more than they should so that I might serve, and I do indeed love them much. Transit is more than a system of buses, ferries, and rails, it is the shared circulatory system of our economy.
▶ 0:46:14Mr. Molinaro: It connects rural towns and big cities, create opportunities, and drives growth, and revitalizes the centers of communities while giving americans, students, seniors, veterans, working parents the freedom to thrive. To meet these challenges and tomorrow's demand, transit must embrace technology, moderna systems, leveraged investment in housing, overall economic development. We must improve reliability, innovation, better serve riders.
▶ 0:46:48Mr. Molinaro: We must drive innovation, boost performance, it really harness technology to transform how we plan, build, and operate transit. A modern, safe, reliable transit center overgrown -- underground them over roads, and across waterways will advance america and americans. In my career, I've had the privilege of focusing on creating opportunities for individuals with disabilities bid our think differently initiative launched in 2015 changed how government serves people, not through rhetoric but through action.
▶ 0:47:18Mr. Molinaro: We made universal accessibility a core value. This confirms the same commitment to those with intellectual disabilities will shape every aspect of my work at the fda, and for daughters like my own and millions of americans just like her. As you know, transit depends on people, operators, engineers, maintenance crews, dispatchers, and custodians who keep america moving. Their dedication deserves our respect, investment, and a seat at the table.
▶ 0:47:47Mr. Molinaro: We value the work of the unions that represent them, see them as partners of a system that see them as safer, more efficient, and future ready. I think my good friend john samuels at the transport workers union for support and being here with me today. I sensed him looming over my right shoulder. [laughter] let me also recognize the great professionals at the federal transit administration.
▶ 0:48:10Mr. Molinaro: Indeed, senator warren, your expertise and dedication are essential to this mission, and I look forward to working alongside them to deliver results for the american people. If confirmed, I will advance president trump's bold american first agenda to rebuilding our infrastructure and seek to meet secretary duffy's high standard for leadership, innovation, and account ability. And I will work with each of you, regardless of party, to help build transit systems that deliver for workers, riders, taxpayers, and those we serve.
▶ 0:48:40Mr. Molinaro: We are indeed at a great moment of possibility, a golden age. Together, we can assure that transit not only moves americans but helps to move america forward. Just as our own circulatory system connects every part of the body to sustain life, transit binds our community together, urban and rural, coastal and heartland, entering opportunity access and resilience to every corner of our nation. I thank you for the opportunity to appear before you today.
▶ 0:49:06Mr. Molinaro: I look forward to your questions, and, if the honor of confirmation, getting to work.
▶ 0:49:12Chair Scott: Thank you. Very well done. Mr. atkins, you talked about the golden age, and certainly we are looking for the golden age. One thing I can say about the sec, is under the present secretary, there was no golden age.
▶ 0:49:35Chair Scott: The sec suffered a series of damaging losses, salt multiple rulemakings overturned in court, saw the staff attorneys sanctioned by gross abuse of power by federal judge, experienced a high rate over a decade. As sec chair, help in the sec recover from these losses and return to its core capabilities as an agency?
▶ 0:50:00Mr. Atkins: Thank you, Mr. chairman. While I agree with you, I think the issues that you raise are very disturbing, and I commit to get to work, and if confirmed, to try to make sure that we increase the morale of the agency that we share some of the dysfunction that is there, the demoralization of it, and get back to work and get back to basics.
▶ 0:50:27Chair Scott: That is very important. It has long been a priority of mine, this committee and the trump administration, to end the practice of de-banking. This committee has focused on responding to operation choque .2 .0, where the buy demonstration reportedly pressured banks to offer services to certain industries.
▶ 0:50:56Chair Scott: As sec chairman, will you ensure that they play by rules and that everyone will be treated fairly
▶ 0:51:01Out Of Mr. Atkins: Absolutely. --treated fairly?
▶ 0:51:06Mr. Atkins: Absolutely.
▶ 0:51:08Chair Scott: Mr. gould, two weeks ago, a bill passed out of this committee, and just last week, the occ took the step of the comptroller handbook and other guidance and instructed occ examiners that they should no longer examine this.
▶ 0:51:34Chair Scott: Do you support the acting comptroller's decision to remove these references?
▶ 0:51:40Mr. Gould: I do, senator.
▶ 0:51:42Chair Scott: Thank you. If confirmed, what steps would you take to end de-banking and federal banking agencies?
▶ 0:51:51Mr. Gould: Senator, thank you for that question. I think it is undetectable for banks or regulators to discriminate on customers on the basics of the customers' politics, religion, or that they are engaged in a lawful activity that is, for whatever reason, politically disfavored, so I apply the committee's efforts to shine a spotlight on what has been going on for a while.
▶ 0:52:14Mr. Gould: These are issues, senator, which I have been working on since 2018, when I was a lawyer for this committee, and I commit, senator, do you enter the committee to continue to support your oversight efforts, to use the occ's full powers, consistent with the statutory mission and law, to do what I can, if confirmed, to shine a spotlight on these activities and ensure that they are not allowed within the banking system.
▶ 0:52:41Chair Scott: Thank you very much. The last question for you, as a top priority, this committee, trump administration to foster innovation, so that we can become the crypto capital of the world. The acting come took a crucial step that limits the crypto companies' access to the U.S. banking system. Are you supportive of this effort to foster innovation in the U.S.?
▶ 0:53:10Chair Scott: If confirmed as comptroller, what role do you envision the occ continue to play in allowing to be so active with it?
▶ 0:53:16Mr. Gould: Thank you for the question, senator. I believe that many of these activities are clearly legally permissible, and I would hope, if confirmed, as comptroller to engage on the hard work and determining ways constructively in determining which activities are lawful and done in a stable fashion.
▶ 0:53:40Mr. Gould: I would hope that, over the last four years, the occ has gotten some express with respect to these assets, so we will be prepare to ensure supervision going forward.
▶ 0:53:50Chair Scott: Thank you very much. Senator warren.
▶ 0:53:53Sen. Warren: Thank, Mr. chairman. So, Mr. atkins, you serve as an fcc commissioner from 2002 to 2008, the lead up to the 2008 financial crash that crash the markets, cost 10 million families their homes, and cost millions more their jobs. Your job was to spot and hit off risks that were holding up a financial market, but you showed staggeringly bad judgment.
▶ 0:54:24Sen. Warren: I have a few examples, since we are limited on time. In 2000 four, when the lehman brothers and bear stearns asked the sec to allow them to reduce their capital buffer by 40%, you said yes and voted to weaken the rules on investment banks.
▶ 0:54:42Sen. Warren: In august 2007, after what was then "the worst weeks in the american stock market in nearly 50 years -- or five years," you bragged that, principles of regulatory restraint has been confirmed as the market has continued to demonstrate a capacity to minimize and absorb systemic risk. Worst week, and you said, great, it shows how strong we are.
▶ 0:55:09Sen. Warren: And then, days after bear stearns collapsed, in march 2008, you made fun of people who thought we needed stronger financial regulations, claiming they were "wallowing in a period of irrational pessimism," and you said that, "regulators must not stand in the way of investors and market participants sorting this situation out." yeah.
▶ 0:55:37Sen. Warren: It sorted itself out with the biggest crash since the great depression. So, simple question, Mr. atkins, were you wrong?
▶ 0:55:44Mr. Atkins: Well, senator warren, you know, there are many entities, there were many causes for the problems in the subprime mortgage crisis.
▶ 0:55:59Sen. Warren: Yeah. But I'm asking about whether you are wrong about the regulation.
▶ 0:56:03Mr. Atkins: No, I don't think so.
▶ 0:56:05Sen. Warren: Both the sec inspector general and the bipartisan financial crisis commission said that the sec's deregulation of investment banks contributed to the crisis. If you have not done it yet, I recommend that you read this, Mr. atkins.
▶ 0:56:26Sen. Warren: This job is about judgment, and holding up on your resume that you were one of the people on the job to exercise judgment in the run-up to the biggest crash since the great depression, and now your hindsight is not 2020, it is 20-0. Do you still say that weakening those regulations did not have anything to do with that crash? I really hope you will read this bipartisan analysis that says otherwise.
▶ 0:56:57Sen. Warren: It is very dangerous to have you in charge of the sec. One of my other top concerns about your nomination, Mr. atkins, is that your judgment will be influenced by more than an objective assessment of the data in front of you could after your stand as the fcc commissioner, you found it a consulting firm called patomak global partners.
▶ 0:57:19Sen. Warren: Patomak counts every kind of financial firm subject to the sec rules among its clients, banks, thin techs, crypto -- fintec's, cryptocurrencies. Your clients pay on how to influence regulators like the sec, and if you are confirmed, you will be in a prime spot to deliver for all of those clients who have been paying you millions of dollars for years. So, Mr.
▶ 0:57:47Sen. Warren: Atkins, given how breathtaking your financial conflicts are, I sent you a letter asking you to commit to a higher standard of government ethics, slow down the revolving door here. Several major financial regulators in the previous administration agreed to these higher standards, but you said in your response, 10 minutes before the hearing started, saying no, you think you've done enough. That is deeply concerning to me.
▶ 0:58:14Sen. Warren: But let's focus on just getting one thing straight, your consultant's company is estimated to be worth about $50 million bu. Will you disclose, if confirmed, if you sell it, who the buyers are and how much they pay, so that we know that these are not just people who are biting assets to the future chair of the sec?
▶ 0:58:38Mr. Atkins: Well, senator warren, I have abided by the office of ethics.
▶ 0:58:44Sen. Warren: I have a question about selling patomak global partners. Is that a no? You are not going to sell it? Will you sell it and tell us how much money you get? People who have business in front of the sec, you know, some people might call that a bribe.
▶ 0:59:03Chair Scott: Mr. tillis.
▶ 0:59:06Sen. Tillis: Thank you, Mr. chair. Mr. atkins, I want to give you a chance to respond to that. I' actually think the 2008 crisis had many causes. You have about a minute to explain that.
▶ 0:59:19Mr. Atkins: Well, thank you, senator tillis. If you read his report that came out, that senator warren referenced, you see the panoply. What really troubles me is congress still has yet to address the real root cause of the subprime mortgage crisis, caused by fannie mae, freddie mac.
▶ 0:59:42Sen. Tillis: What was the root cause of that?
▶ 0:59:44Mr. Atkins: Well, they basically threw caution to the wind. When we talk about regulation, those two agencies, the buyers --.
▶ 0:59:58Sen. Tillis: I think in some instances, we lead certain consumers to the slaughter as a result of our in action. Ok, I gave you a minute. Mr. pettit, there are some people who suggested that regulatory tailoring was the reason why silicon valley game sales. I actually think that 2155 should be real limited.
▶ 1:00:27Sen. Tillis: I think silicon valley bank failed because of their activities, exceptions of maybe one or two that were doing what they were doing. Mr. gould, want you to chime in after Mr. pettit, but tell me what we should be doing with respect to recovering from silicon valley bank's failure? And to what extent will you provide the kind of regulatory framework that small community banks need? Mr. gould, you can follow after Mr. pettit.
▶ 1:00:57Mr. Pettit: Thank you, Mr. tillis. Svb's failure shows that these onset teams should be engaged in, 2155 --.
▶ 1:01:20Sen. Tillis: Do you agree the regulators on that should be fired for malpractice? You can keep on.
▶ 1:01:27Mr. Pettit: They were asleep at the wheel, full stop. Not only did they rate svb at the highest reading some of overlooked failures.
▶ 1:01:38Sen. Tillis: Everything else that supervisors chose not to really press on this.
▶ 1:01:42Mr. Pettit: Yes, sir, that is the lesson we should be taking, and we should be reassessing how these onset teams engage in supervision on day-to-day.
▶ 1:01:51Sen. Tillis: Thank you, Mr. gould.
▶ 1:01:55Mr. Gould: I would agree with Mr. pettit's comments. This is one of the reasons I think we really need to focus on giving banks revisions, that there seems to have been a barrier to focus on material financial risk in bed with that bank sheet. This is a risk management 101, and the fact that it was overlooked by both the california regulator and the san francisco fed is really deeply disturbing, senator.
▶ 1:02:22Sen. Tillis: In my time remaining, having to do with reputational risk, acting controller hood with the sec's perspective, bank supervision's large banks, -- and bank supervision and large bank supervision. Will you commit that no future guidance directives, whether formal or informal, exists at the occ related to reputational risks from sr 9551?
▶ 1:02:55Mr. Gould: Yes, sir, I think too often reputational risk is used for other motives, and I think the regulators have at their disposal other forms of more easily quantifiable and just better understood, more precise, more objective firms, including mitigation risks.
▶ 1:03:15Sen. Tillis: I think it is rich to think that some government examiner or supervisor can go into a publicly traded banking institution and judge what they think their activities are appropriate or not appropriate, based on reputational risks.
▶ 1:03:37Sen. Tillis: Reputational risks is foundational to an organization's reputation and longevity, and to think that somebody from the outside is suggesting that is absurd to me. It really strikes me as somebody who has never worked a day in business. I appreciate your answer. Mr. molinaro, I'm out of time, I just want to let you and all of you know I look forward to supporting your confirmations, and to the two former staffers, you have a big fan club around capitol hill. Thank you.
▶ 1:04:08Sen. Tillis: >> I ask unanimous consent to include into the record letter from Mr. atkins regarding his compliance of ethics requirements.
▶ 1:04:13Chair Scott: Without objection. So order. Senator van hollen.
▶ 1:04:18Sen. Van Hollen: Thank you, Mr. chairman. Welcome, everybody. Mr. atkins, a number of years ago, senator kennedy and I teamed up to pass a law entitled holding foreign companies accountable act. It was designed to protect american investors and actually also american businesses by ensuring that foreign companies that list their shares on U.S. exchanges have to play by the same accounting standards as U.S. companies that list their shares on those exchanges.
▶ 1:04:51Sen. Van Hollen: And at the time, chinese companies had been playing by a whole different set of rules, which both put them at a competitive advantage but also endangered american investors on those exchanges, especially less sophisticated investors. And the sec is charged by making sure chinese companies play by the same rules.
▶ 1:05:23Sen. Van Hollen: So my question to you is, would you commit that if you are confirmed, you will preserve the important role in that mission?
▶ 1:05:31Mr. Atkins: Thank you, senator. The role is crucial, accounting and auditing is really crucial, obviously, to the investor protections and to the capital market, so, yes, that function is, by law, relegated to the pcab, so I will ensure that it is not politicized anymore and that it is really focusing on its mission to protect
▶ 1:06:04Mr. Atkins: Investors.
▶ 1:06:06Sen. Van Hollen: I appreciate that. The reason I ask that is looking at project 2025, I see that you have a special mention in project 2025, in a chapter that mentions pcaob, is that right?
▶ 1:06:25I Mr. Atkins: Participated in a couple of phone calls.
▶ 1:06:28Sen. Van Hollen: They listed you in a special mention in a chapter that recommends that the pcab pcaob be abolished. Are you in favor of abolishing the pcaob?
▶ 1:06:42Mr. Atkins: Well, that is up to you all, it is part of the statute.
▶ 1:06:48Sen. Van Hollen: Are you in favor of abolishing the pcaob?
▶ 1:06:52Mr. Atkins: The function needs to be done, whether it is pcaob or folded back to the sec, the function is vital.
▶ 1:07:01Sen. Van Hollen: Do you or do you not subscribe to the recommendation in this chapter of project 2025 that the Sen.
▶ 1:07:11Banks: Bee -- that the pcaob be abolished?
▶ 1:07:18Mr. Atkins: It is not up to make of it is up to the congress.
▶ 1:07:25Sen. Van Hollen: So you agree that neither you or the president has the ability to unilaterally abolish the pcaob? You said it was the congress, right? So I'm assuming from your answer that you agree that the president cannot unilaterally get rid of pcaob. Is that your view?
▶ 1:07:39Mr. Atkins: You have it in the statute, so it is part of the law.
▶ 1:07:44Sen. Van Hollen: That seems to be -- there's a lot in our statue right now, Mr. atkins, that the president has decided to ignore, which is why we have so many lawsuits filed about his abuse and the separation of powers. Mr.
▶ 1:07:59Sen. Van Hollen: Molinaro, if you are confirmed, you will be leading an agency that has about 700 employees at the beginning of president trump's second term, but because of the actions taken by the musk doge operations and others come about 80 probationary employees were initially terminated.
▶ 1:08:23Sen. Van Hollen: My understanding is many of them are now being brought back to the fta, because of court orders that found that those were illegal phyla rings -- illegal firings. Is that your understanding?
▶ 1:08:35Mr. Molinaro: Only through public reports, senator.
▶ 1:08:40Sen. Van Hollen: Would you agree that haphazardly eliminating employees from the fta, so, for example, those of the office of transient patient safety and oversight, compete people at risk?
▶ 1:08:52Mr. Molinaro: Senator, I can only offer what I observed publicly. It is my anticipation to enter the role with force, obviously seeking to increase morale, but I assure you just as secretary duffy asserted in his hearing and I did earlier in my opening comments, public safety, and only the safety of the individual riders across america, workers in the systems, is a priority, and I will apply the law.
▶ 1:09:17Sen. Van Hollen: I appreciate that, because the infrastructure bill that passed, including a measure I passed, the transit worker and transit worker -- the transit worker and pedestrian act.
▶ 1:09:28Chair Scott: Senator kennedy, you are recognized.
▶ 1:09:36Sen. Kennedy: Mr. atkins, you were roommates with senator hagerty in lawsuit -- in law school?
▶ 1:09:41Mr. Atkins: Yes, sir.
▶ 1:09:44Sen. Hagerty: You treated senator hagerty with -- is it true that senator hagerty has a tattoo of the backstreet boys on his back? [laughter]
▶ 1:09:58Mr. Atkins: I would not know.
▶ 1:10:08Sen. Kennedy: You know who sam bankman-fried is, don't you? He looks like the fourth runner-up in a john belushi contest.
▶ 1:10:17Mr. Atkins: It could be.
▶ 1:10:21Sen. Kennedy: He is a crook, isn't he?
▶ 1:10:27Mr. Atkins: He has been convicted.
▶ 1:10:28Sen. Kennedy: And his parents were involved in his company, weren't they?
▶ 1:10:29Mr. Atkins: I think by the public report.
▶ 1:10:34Sen. Kennedy: Don't you think the sec ought to do something about it?
▶ 1:10:37Mr. Atkins: Well, I look forward to getting to the sec to find out what has happened.
▶ 1:10:42Sen. Kennedy: But based on what you write, they made millions of dollars off of their son's illegal activity. Don't you think they ought to be punished? Do you think the american people have seen that?
▶ 1:10:55Mr. Atkins: Well, like you, I'm concerned about those reports.
▶ 1:11:00Sen. Kennedy: I whined to be more than concerned. And when his parents did all of this, they were both chaired professors at stanford law school. Has the sec been investigating stanford law school for its involvement in this?
▶ 1:11:16Mr. Atkins: I would not know.
▶ 1:11:20Sen. Kennedy: Dennis sam bankman-fried's parents, who were involved in the fraud, make sizable donations to stanford university?
▶ 1:11:27Mr. Atkins: Perhaps. I do not know, personally.
▶ 1:11:30Sen. Kennedy: Did stanford give the money back?
▶ 1:11:33Mr. Atkins: I would not know that.
▶ 1:11:37Sen. Kennedy: Well, Mr. atkins, I want you to find out. There should not be two standards of law and punishment for people. And every time you come to this committee, I'm going to pounce on you like a ninja to find out what the sec has done.
▶ 1:12:03Sen. Kennedy: And I read in the paper that the bankman-fried's are trying to get a part c1 I expect the sec to dissenting about it. I'm ceo of an american company and I want to sell some of my company's stocks, I have got to file an electronic report with the sec that becomes public immediately. Then have to wait two days, don't I?
▶ 1:12:34Mr. Atkins: Yes.
▶ 1:12:41Sen. Kennedy: To find the ceo of a chinese company listed on an american exchange, I don't want to have to do that, do I?
▶ 1:12:44Mr. Atkins: There are different rules for foreign --
▶ 1:12:46Sen. Kennedy: Why?
▶ 1:12:48Mr. Atkins: Good question. Things have changed a lot since those rules were put in place.
▶ 1:12:53Sen. Kennedy: Senator van hollen and I have a bill. I want something done about it. If I'm the ceo of a chinese company and I want to sell -- engage in insider trading, I have to notify the sec. There is no time limit. I don't have to file electronically. I can send them a letter. I don't have to wait.
▶ 1:13:24Sen. Kennedy: Ceos of chinese company have done that, having the? -- haven't that? I expect you to find out. That is the second thing about #you like a ninja on. -- I will pounce on you like a ninja on. The stock immediately went down. The american investors had bear the losses. $10 billion worth under the sec's nose.
▶ 1:13:56Sen. Kennedy: I expect something to be done about it. Mr. --Mr. pettit, I understand where the president is coming from on tariffs, don't you?
▶ 1:14:08Mr. Pettit: Yes, senator.
▶ 1:14:11Sen. Kennedy: America is the wealthiest country in human history. 70% of our economy is driven by consumer demand. Consumer purchases. Why not use our bargaining strength, our economy, to get foreign counties to build their plants in louisiana? In the long run theoretically it will work. Somebody said in the long run you are dead. Tell me what the short-term effects of these tariffs are.
▶ 1:14:41Sen. Kennedy: Already consumer expectations are going down like john goodman on a seesaw. Can you tell me what the short-term effects will be?
▶ 1:14:50Chair Scott: 10 seconds.
▶ 1:14:52Sen. Kennedy: Pretty please.
▶ 1:14:54Mr. Pettit: I look forward to working with the -- it is difficult to assess the near-term impacts of the tariffs.
▶ 1:15:01Sen. Kennedy: That's why am asking you. You are an economist without
▶ 1:15:04Chair Scott: Your time is up.
▶ 1:15:05Sen. Kennedy: I had him nailed down. [laughter]
▶ 1:15:09Chair Scott: He was wiggling. Senator cortez masto.
▶ 1:15:15Sen. Cortez Masto: That was my question.
▶ 1:15:17Chair Scott: Bipartisanship.
▶ 1:15:21Senator Cortez Masto: Talk to me about these tariffs. We have imposed tariffs on canada. What is the short-term impact?
▶ 1:15:31Mr. Pettit: Thank you, senator. The impact in the short run may increase the prices of the imports. The objectives to help incentivize manufacturing in the united states.
▶ 1:15:44Sen. Cortez Masto: If they impose more costs here for our companies and companies pass that onto the consumers which I see they intend to do, is that a higher cost of the american consumer? Higher prices?
▶ 1:16:02Mr. Pettit: In the short-term it could lead to higher prices on imported good. -- goods.
▶ 1:16:08Sen. Cortez Masto: You would agree with billboards s8 tariffs are an attack on your grocery bill?
▶ 1:16:14Mr. Pettit: I'm not sure the volume of imports of various produce and goods. The intent of the tariffs is to help re-shore.
▶ 1:16:23Sen. Cortez Masto: Let's talk about short-term impacts. Would you agree with canada that tariffs are on hard-working americans? He basically said that is the ultimate result. Would you agree?
▶ 1:16:36Mr. Pettit: The effect of tariffs is different than an attack on americans but it could lead to higher prices on certain imported goods.
▶ 1:16:42Sen. Cortez Masto: To americans? If the companies past the cost on to americans?
▶ 1:16:48Mr. Pettit: Yes.
▶ 1:16:50Sen. Cortez Masto: If you're confirmed, will you respect the independence of the bank regulators?
▶ 1:16:57Mr. Pettit: Thank you for the question. If confirmed, I look forward to working with the regulators who will operate independently, yes.
▶ 1:17:04Sen. Cortez Masto: You will respect their independence?
▶ 1:17:07Mr. Pettit: I will.
▶ 1:17:09Sen. Cortez Masto: Secretary b essent announced our financial regulators singing in unison from the same songs is what he's looking for. We need them singing from the same song sheet. This is not mean consolidation of agencies but coordination via treasury such regulators work in parallel with each other and the industry. What is that mean?
▶ 1:17:38Mr. Pettit: Not to speak on behalf of secretary bessent, the intention was that we need to avoid the outcome of having regulators telling institutions different things so institutions supervised by multiple regulators are not torn between conflicting guidance.
▶ 1:17:55Sen. Cortez Masto: They should work parallel with the treasury department?
▶ 1:17:59Mr. Pettit: No. The objective is to ensure there isn't uncertainty in terms of which rules to follow across different agencies.
▶ 1:18:06Sen. Cortez Masto: Ok. I will be curious to see how this lays out. Mr. molinaro, thank you for meeting with me. I appreciate the conversation we had in my office. We talked about transparency. You called out your own metropolitan transit agency on a lack of transparency and account ability.
▶ 1:18:28Sen. Cortez Masto: Can you promise as a demonstrator to provide the public and congress transparency in job firings and federal funding freezes that are currently being ordered by the trump administration and those employed with doge?
▶ 1:18:43Mr. Molinaro: I was convinced not of you noticed I was here. Senator, I don't know the current impacts. My expectation and commitment is to uphold the highest standard of accountability and transfer ansi and work with your office -- transparency to explain both impacts of previous and future decisions within the fda.
▶ 1:19:06Sen. Cortez Masto: I appreciate that. Congress worked deliberately in a bipartisan way to pass the infrastructure investment and jobs act. The bill authorized up to 108 billion dollars for fiscal years 2022 and 2026 to support public transit. Will you commit to dispersing all the already approved funding and the remaining funding with how it was authorized by congress?
▶ 1:19:32Mr. Molinaro: Again, I appreciate the time we spent together. I don't know the status of awarded and contracted grants. I read yesterday morning there is some advancement in release of those dollars. As I said to you privately, the president and secretary have asked me to advocate on behalf of transit systems across the country and the riding public. I will advocate for the disbursement of obligated words.
▶ 1:20:01Sen. Cortez Masto: Let me just ask you this. We talked about this rural communities and the challenges we see for transportation in rural communities. Warehouse district covered vast counties of upstate new york where my husband and family are from. You are familiar with the lack of transit access. Talk a little bit about not only the challenges you saw but how you addressed it and what you intend to do.
▶ 1:20:26Mr. Molinaro: I value working with supporting rural transit systems. Think of hubs and spokes. Urban and village and city centers being the hub. The regional districts, rural transit systems being the spokes. It is important we connect them to grow the american economy.
▶ 1:20:46Sen. Cortez Masto: Thank you.
▶ 1:20:47Chair Scott: Senator marino.
▶ 1:20:50Sen. Hirono: -- moreno: Mr. atkins, you have to be able to breathe and not be a complete raging lunatic and you will be the greatest sec commissioner compared to the last guy. Congratulations on coming after gary gensler who probably was one of the stupidest people in government.
▶ 1:21:14Sen. Hirono: I want to ask a question is because there are comments and want to correct for the record around -- you have met president trump, right?
▶ 1:21:21Mr. Atkins: Yes.
▶ 1:21:23Sen. Moreno: Is he the president of united states?
▶ 1:21:26Mr. Atkins: Yes.
▶ 1:21:27Sen. Moreno: Is there a copresident or does president trump make the decisions?
▶ 1:21:33Mr. Atkins: He's the head of the executive branch.
▶ 1:21:35Sen. Moreno: There's no ambiguity in the white house as to who is in charge. It is donald trump come correct? -- trump, correct? I find it ironic the democrats like to talk about elon musk. 70% of ev's are sold by tesla. I'm convinced taylor swift will write a song of the someday.
▶ 1:22:05Sen. Moreno: Who is in charge for the last four years? It was in charge for the last four years and we had no idea who who clearly was in the white house? It seems like the most important person was an auto pen. Let's talk about the sec.
▶ 1:22:26Sen. Moreno: Are you worried about what is going on with american companies having capital outflows to the chinese-backed companies like corporate technology limited, a company that sounds very nice and obscure and western but in reality is a fully owned company for the ccp? Are you concerned by that?
▶ 1:22:47Mr. Atkins: Senator, I'm concerned about what I read in the paper. I'm not in the building yet and know with the sec is seeing and doing about it. Obviously the work you all are doing in congress is very important.
▶ 1:23:02Sen. Moreno: I don't pretend to jump on you like it did. If you can please take a look and make certain you look at what we are doing to make certain the U.S. capital outflows do not go into that office. Shifting to Mr. molinaro, I don't you to feel ignored. Let's talk transit.
▶ 1:23:23Sen. Moreno: Do you think it makes sense to spend three times as much money for electric buses than for ones that are run by renewable or compressed natural gas?
▶ 1:23:34Mr. Molinaro: As I said, and affirmed when I spoke with your staff, local and regional transit systems need to make purchasing decisions that make sense for them. While I embrace all the above energy approach, you are highlighting noble energy sources. They are a great way, as I mentioned in addressing the senators, of marrying the agricultural and rural economy of mass transit.
▶ 1:24:05Mr. Molinaro: While currently the law requires certain distribution of dollars for low and no emission vehicles, you will debate and consider that for through -- through reauthorization. We encourage regional and local transit decisions to make decisions that make sense for them.
▶ 1:24:25Sen. Moreno: Not when they are building the federal government to her three times what they can do with something else -- two or three times what they can do is nothing that a calm pushes the mission better. They put diesel generators to charge electric semi's. Their chairman will electrocute me if I go over my time. Let me ask you a question. We talked about tariffs.
▶ 1:24:54Sen. Moreno: I thought this was the banking committee, the finance committee. Let's clarify the situation in canada. You have a family. You have family members. Do you know anybody who has ever been killed as a result of fentanyl poison?
▶ 1:25:10Mr. Pettit: Not directly but I have friend to of been impacted.
▶ 1:25:14Sen. Moreno: You think the president should do nothing and we should continue to let 110,000 plus americans die every year of fentanyl poison?
▶ 1:25:22Mr. Pettit: I do not.
▶ 1:25:24Sen. Moreno: Is it acceptable that canada and mexico allow that poison to come to the country?
▶ 1:25:29Mr. Pettit: No.
▶ 1:25:31Sen. Moreno: For decades we did nothing. President trump said to our partners we will let you rip us off at $300 billion a year in trade surplus but don't poison 110,000 americans. I don't think that's an unreasonable expectation. When we look about tariffs, it shocks me we sit here and have these conversations that don't take into account the empathy of what is going on in places like ohio that has been ravaged by fentanyl. Thank you.
▶ 1:25:58Chair Scott: Senator reid.
▶ 1:26:01Sen. Reed: Thank you dunnellon. Welcome. The lcc is charged with the enforcement of military lending act on federally charged banks. Will you commit to vigorous enforcement of this legislation which protects our servicemen and women?
▶ 1:26:22Mr. Gould: Yes sir.
▶ 1:26:23Sen. Reed: Thank you. 36% interest. I feel that is a good standard, not just for members in uniform but for every american. In fact, the supervisions are insisting interest raise not go beyond 36%. That would be indicative for poor lending standards. Is that accurate?
▶ 1:26:52Mr. Gould: Senator, I would be happy to look into that if confirmed.
▶ 1:26:56Sen. Reed: If that in fact is correct, I would hope you could join me in urging that we apply that military standard to all the american people and we pass legislation in this body and the house to make 36% interest rate cap on all lenders. I will look forward to working with you on that. Mr. atkins, private equity is growing exponentially.
▶ 1:27:29Sen. Reed: It is also becoming more widely available, not just of wealthy individuals but to retail investors. The sec just approved an exchange traded fund containing private credit assets. There's the possibility very risk very rissky assets are being included to sale to retail consumers.
▶ 1:27:53Sen. Reed: It raises the question of what transparency and investor protection should be in place for private equity or private market investments?
▶ 1:28:07Mr. Atkins: Thank you, senator. It was a pleasure to chat with you in your office a few weeks ago. The one thing about the public markets and etf's and mutual funds is they have to abide by rules and those sorts of things which is a key investor protection for those sorts of things with diversity so that one investment will not take the
▶ 1:28:38Mr. Atkins: Whole thing down. That is key. There is a process by which the sec and the staff approves of these various offerings. I look forward to seeing the work if confirmed.
▶ 1:28:56Sen. Reed: These private equity, private investment funds are growing. They are larger than some capitalized companies that are regulated very rigorously by the sec. I think we are approaching a point where we have to have some regulations for private equity enterprises.
▶ 1:29:16Sen. Reed: If not, we could find ourselves in a situation where the public is buying illiquid assets or -- I saw this as he went to the 2008 crisis. Not with respect to investments but with respect to housing. Let me move on. The sec has a pending case against elon musk for concealing his intentions requiring -- while acquiring twitter stock.
▶ 1:29:47Sen. Reed: One commenter said, "a very serious violation seems to have saved Mr. molinaro 143 million --Mr. musk $143 million." doge is disrupting agencies. Given the sec is using its resources to enforce rulings against musk, what if Mr. musk came knocking on your door?
▶ 1:30:16Mr. Atkins: I don't know anything about the case other than what I have read in the papers. I cannot speak to that. As far as if there are people who can help creating efficiencies in the agency or otherwise, I would definitely work with them.
▶ 1:30:39Mr. Atkins: As we will be looking at things going on at the commission right now to make sure taxpayer funds are being used properly and that the work of the commission is being done effectively and efficiently.
▶ 1:30:51Sen. Reed: Would it be a surprise if the case against Mr. musk was suddenly dropped?
▶ 1:30:57Mr. Atkins: I have no way to judge with the merits or lack thereof would be on that.
▶ 1:31:04Sen. Reed: Mr. molinaro, thank you for meeting in my office. My time is expired.
▶ 1:31:13Chair Scott: Senator britt.
▶ 1:31:18Sen. Britt: Thank you for serving our country at the highest level. You are up for critical roles that affect the lives of all americans. Which is why it's important you bring transparency and accountability to the agencies you are going to serve. I will not ask you to comment on the past but I what a highlight a couple of needs for change here. Over the last two years we had agencies that prioritized speedy regulation over thoughtful policymaking.
▶ 1:31:48Sen. Britt: Rushing into policymaking without proper due diligence or justification. We had regulators in this room and other committee hearing rooms and one by one tell me that they believe the U.S. banking was the strongest and well-capitalized across the world. I ree. Immediately calling for higher and more regulation and higher capital standards right after that.
▶ 1:32:13Sen. Britt: I asked them after the 2020 three banking failures -- 2023 banking failures, every one of them said I don't know, I don't know. I will get back to you. They all said they needed more power and more authority to prevent that in the future. That is not how this should work and it is completely and totally unacceptable. One thing we must reinstate is proper regulatory tailoring.
▶ 1:32:43Sen. Britt: I centered -- I sent them was senator crap and asked about -- crapo and asked about 2155. How does it balance regulatory framework promote stability and growth? Whether it is capital, liquidity, risk management, a bank with less than $1 billion in assets should not be subject to the same threshold as a $3 trillion bank. I would say the same thing for a $150 billion bank.
▶ 1:33:14Sen. Britt: There is purposeness in this.
▶ 1:33:19Mr. Gould: It is the case and not all bank business models look the same risks. They should not be treated the same way, whether at her matter of regulation or supervision. If you want to preserve a diverse banking sector, which is to say a sector in which we have banks that are small banks, medium banks serving local communities to the largest banks and everything in between, we need to adhere to both the
▶ 1:33:53Mr. Gould: Letter of the economic growth hacked in the spirit of it and making sure we are bringing common sense tailoring to both bank supervision and bank regulation.
▶ 1:34:02Sen. Britt: Thank you for that commitment. In the rulemaking we have seen it created significant confusion and compliance costs to some of our smallest banks and our businesses in rural america and main streets that make our state so great. Mr.
▶ 1:34:17Sen. Britt: Pettit, in your role of overseeing bank policy will you commit to regular communication with community bank sector to ensure the rules that are going to be considered are taking a look at their unique business model? What is the impact of these things? What are the actual enforcement mechanisms? How was this going to affect them and their relationship banking? What you look at that before moving forward?
▶ 1:34:46Mr. Pettit: I have seen firsthand the role community banks play in adding to the breath of our system in states like tennessee and alabama that would be otherwise unbanked.
▶ 1:35:01Sen. Britt: I have two more questions. I want to touch on the sec consolidated audit trail. The massive data collection poses privacy risks for consumers. I'm pleased the agency has halted the cat collection of identification -- information. The data creates a target for bad actors. Mr.
▶ 1:35:27Sen. Britt: Atkins, we commit to reevaluating both the necessity of cat and whether adequate protections are in place to safeguard the data collected?
▶ 1:35:39Mr. Atkins: Absolutely.
▶ 1:35:44Sen. Britt: Mr. molinaro, I see your former colleagues from the back. You have a support from both sides of the aisle and everyone who had the opportunity to work with you. I'm excited for your leadership in the new role. When you said we want to help america move forward, I could not agree more. One things we see in alabama is rural communities sometimes take extra effort and afterthought. You have anything you want to add or talk about with regards to how we incorporate rural communities into your plans?
▶ 1:36:14Mr. Molinaro: Vertically important. Many constituent need to move within the communities and other communities for employment. Fta and lead with technical support with smaller transit agencies to provide back-office support. Really to grow their capacity. We look forward to getting on the ground and working with you and your staff and officials to assist in meeting the needs of rural communities.
▶ 1:36:37Sen. Britt: Thank you all.
▶ 1:36:40Chair Scott: Senator smith.
▶ 1:36:42Sen. Smith: Welcome to all of you. I will follow-up up on the question my colleague senator britt asked about rural transmit. Congressman, we spoke about this yesterday afternoon. I appreciate that question. The fta will be responsible for lots of grants and projects that are already in the pipeline. Things are already happening. Contractors ordered materials. Construction is in process.
▶ 1:37:12Sen. Smith: We have engineers and electricians in the whole nine yards showing up to work. My concerned about what the administration has been doing to pause or halt or sometimes cancel projects, even projects across agencies that are already in process.
▶ 1:37:29Sen. Smith: Can you talk about how you would approach this leading fta and are you able to commit the funds we authorize through the structure and jobs act -- infrastructure and jobs act keeps flowing?
▶ 1:37:45Mr. Molinaro: Thank you for your time yesterday. I hope graham had a whirlwind of a day. As I said, I don't know the status of the individual grants but it's my commitment as the president asked in the secretary expects, I will advocate for the release of dollars and meeting the contractual obligations of the fta.
▶ 1:38:07Mr. Molinaro: As I noted, I read yesterday, public notice that some of those grant projects are now moving forward. Congressionally directed dollars are starting to flow. My commitment is to work with you and your team to advocate for and hopefully move effectively those dollars.
▶ 1:38:29Mr. Molinaro: It is critically important and I understand the reality that in order to move massive infrastructure projects and even small transit projects, that commitment from appropriation to ultimate obligation and contract is important to adhere to.
▶ 1:38:44Sen. Smith: That is important. At the end of the day if you have small rural transit agencies that are in the midst of a project and in that project is held up because the federal government is not living up to its commitments, that is money out of the pockets of my constituents. For minnesota, we send more money than we get back. It is a matter of great interest. We appreciate the conversation we had yesterday. Mr.
▶ 1:39:11Sen. Smith: Atkins, I want to talk about private funds. There's growing evidence that private fund managers are taking advantage of their unregulated, unregistered status. Unregistered status. 2022, the sec wanted managers are not disclosing fees and expenses their investors are using and using cherry picked track records to inflate their funds' performance.
▶ 1:39:36Sen. Smith: Private markets, "come at the cost of higher fees, greater risk, more conflict of interest, and less disclosure." it means worker pension plans and retirement plans get saddled with those fees. Do you agree that I would find managers are charging higher fees than the public market counterparts?
▶ 1:39:58Mr. Atkins: Senator, there's a whole range of fees for them. As far as not being truthful in disclosure can be applies to whether or not it is public or private security.
▶ 1:40:21Mr. Atkins: That is one way to protect investors if they are being, you know, in disclosure -- in disclosure that way.
▶ 1:40:34Sen. Smith: They should make sure they know what the fees are going to be in advance?
▶ 1:40:37Mr. Atkins: These are credited investors and people who are not retail investors. They have the means to do investigation. If they are the disclosures -- if the disclosures are incorrect, materially incorrect, that is actionable.
▶ 1:40:58Sen. Smith: The typical management fee for private fund can be for times higher than the annual fee for a mutual fund. That doesn't include the profits those fund managers key for themselves, which can push up to 20%. Multiple studies have found that private funds rarely -- barely beat the stock market, if they do it all. Do you think private fund managers -- what is your take on what we ought to be doing to make sure this is fair for people?
▶ 1:41:28Mr. Atkins: People who are investing in these sorts of funds are more sophisticated and general than others or they have the ability to higher advisors. -- hire advisors. You don't necessarily need to invest in those types of instruments.
▶ 1:41:48Sen. Smith: I think this is a matter of concern. I think is the funds become -- it is the pensions of my constituents that are in these funds. That is not a good thing.
▶ 1:42:03Mr. Atkins: I'm happy to work with you on that.
▶ 1:42:05Sen. Smith: Senator warnock.
▶ 1:42:09Sen. Warner: , thank you, brother chairman. Welcome to you and your families present an congratulation on your nominations. Mr. atkins, thank you for meeting with me in my office. I would like to follow up on our discussion. Specifically regarding the 2008 financial crisis which devastated millions of americans. Millions of americans lost their jobs. Families lost their homes. Seniors lost retirement savings.
▶ 1:42:41Sen. Warner: Instead of famines getting help, americans saw wall street get bailed out. You served as a commissioner on the securities and exchange commission under president bush during the lead up to the crisis 2 from 2002 to 2008?
▶ 1:42:58Mr. Atkins: Yes.
▶ 1:43:00Sen. Warnock: You were appointed to serve on the congressional oversight panel for tarp, which ranking member warren chaired and oversaw the federal government's response to the financial crisis. When we met if use ago at my office, one of the questions I asked based on your experience, what did you learn from the financial crisis?
▶ 1:43:25Sen. Warnock: You spoke about the overregulation of banks and the financial sector. Can you share more on that view?
▶ 1:43:34Mr. Atkins: Thank you, senator. There are many causes to that financial crisis. It was really awful. What troubles me is that some of the key factors to it are still unaddressed.
▶ 1:43:51Mr. Atkins: That is the fannie mae and freddie mac activities in the marketplace and how that can potentially create problems in the future similar to what went on 25 years ago. In the meantime, as far as what the sec is doing, I look forward to being in the building to figure out what the examinations show with respect --
▶ 1:44:20Sen. Warnock: What was the big takeaway in terms of lessons learned from the crisis?
▶ 1:44:26Mr. Atkins: One is over leveraging is not a good sound business practice. Because of a lot of the distractions that went on during that time from the leadership at the sec, from the chairman and others making that -- it was non-essential to the situation at the time, that helped create distraction.
▶ 1:44:54Sen. Warnock: One of the things that struck me about your answer in my office and you seem to be elaborating on that as you talk about distractions was you felt that when I asked the big takeaway, you said overregulation. Is that an accurate characterization that the big problem was overregulation that led to the 2008 financial crisis?
▶ 1:45:24Mr. Atkins: I don't know about overby galatian. -- overregular asian. -- overregular asian. Focus -- overregulation. Being distracted by ancillary issues not focused on what is important to the marketplace.
▶ 1:45:43Sen. Warnock: Do you think less regulation would have helped?
▶ 1:45:48Mr. Atkins: I think there was mis-regulation. Resources not focus on the actual problems.
▶ 1:45:55Sen. Warnock: Do you think that we were too hard on the banks?
▶ 1:46:00Mr. Atkins: Thanks or securities -- banks or securities firms. The distortions that were created through the regulatory scheme at the time helped distract --
▶ 1:46:22Sen. Warnock: In some ways we were too hard on the banks?
▶ 1:46:26Mr. Atkins: I don't know about too hard.
▶ 1:46:27Sen. Warnock: There are communities in atlanta, especially communities on close to and the folks I know and people in my -- they have not recovered. We saw a huge transfer of wealth as a result of this crisis. The banks got bailed out. Wall street got bailed out. Consumers did not get bailed out. Often what we -- you were the nominee at the sec.
▶ 1:46:55Sen. Warnock: I'm trying to get an understanding of what you think we need to do differently. Let me press on. Speaking of going easy on wall street, you have been critical of monetary fines against companies charged with fraud. Will the sec continue to fine companies that break the law?
▶ 1:47:15Mr. Atkins: Absolutely. It depends on the situation. When I was there, the commission adopted a bipartisan statement on corporate penalties.
▶ 1:47:25Sen. Warnock: Do you have an issue with penalties as a way of making sure they comply with the law?
▶ 1:47:29Mr. Atkins: Now. .
▶ 1:47:32Sen. Warnock: Thank you so much.
▶ 1:47:34Chair Scott: Senator kim.
▶ 1:47:38Sen. Kim: Mr. atkins, there was mention earlier about the consolidated audit trail. Do you agree that the prospects of foreign companies manipulate our market presents a national security threat?
▶ 1:47:56Mr. Atkins: Yes. Especially in the day of ai.
▶ 1:48:00Sen. Kim: Hopefully all of us can agree upon that. I wanted to ask, the consolidated audit trail is our only tool that tracks market many relation across companies, particularly in foreign companies. What is your thoughts on whether or not we should could continue without? -- with that?
▶ 1:48:22Mr. Atkins: I look forward to looking into what the status of that whole situation is. It has cost a lot of money and a lot of effort, both by the sec but also with respect to the market participants. Is it well coordinated and well calibrated to meet the needs it is stated to hopefully meet.
▶ 1:48:53Mr. Atkins: It needs to be reviewed.
▶ 1:48:53Sen. Kim: You don't have a position now that it should be taken away?
▶ 1:48:57Mr. Atkins: I would need to look at what the status is. I only know what I read in the newspaper. The sec, the exchanges. A lot of people have spent a lot of money. I hope it is towards the good. That is what I intend to find out if confirmed.
▶ 1:49:19Sen. Kim: The reason I raised this is you are listed as a special contributor to that portion of the project 2025 compilation. Which calls for the termination of the consolidated audit trail program. I wanted you response. Do you disagree with what you saw in project 2025 talking about this?
▶ 1:49:44Mr. Atkins: Actually, I purchase a paid it in a call or two on that. I was not involved in drafting it. I commit to looking at the situation, to wait is now with the plans, how efficient it is, with the costs are going to be. If you learned a lot from when it started out. Even the mission of it has kind of veered off from the way it was stated from the folks who voted on it originally.
▶ 1:50:16Mr. Atkins: Like with anything else, things change over time and we need to see if it is going to be focused on the mission it is trying to solve.
▶ 1:50:25Sen. Kim: I wanted -- I was concerned. This is an important tool. It is important to fight back against that type of manipulation that could occur when it comes to our markets. Whether we see a rise of greater global competition, concerns about chinese companies are others manipulating.
▶ 1:50:48Sen. Kim: That is something I urge you if confirmed to prioritize and do everything we can to make sure these tools are in place. I personally think the cat program has been helpful, is important, and are only tool when it comes to this. I wanted to emphasize that. Mr.
▶ 1:51:10Sen. Kim: Molinaro, I wanted to turn to you to ask when it comes to the fta, your thoughts in terms of how we consider staffing at a time when we have seen efforts across the administration to decrease staff. I was concerned about the lack of protections for probationary employees in terms of how they were terminated at fta.
▶ 1:51:38Mr. Molinaro: As I mentioned earlier, I appreciate our time together. I spent some time talking with chris at new jersey transit. I don't know the status of the hiring and dismissal decisions. Only what I read. Having spent most my life and local government, I would wake up in the federal or state government would impose some mandate that would require to do more with less.
▶ 1:52:08Mr. Molinaro: My goal is to show respect to the career staff. I have a great deal of admiration for them. Assess the impact of those decisions. Really demand and work with the team to deliver the highest results with the team presented to me.
▶ 1:52:22Sen. Kim: As we talked about, there's no one in this country that thanks what we are doing on transit is enough. There is more to push on. For us to meet that moment and supercharge this, we need to understand and be willing to take those types of investments. We talked about it as a national priority and we should prioritize the equities brought by some of these public servants -- expertise brought by some of these public servants.
▶ 1:52:49Chair Scott: Senator blunt rochester. Sen. blunt rochester/ : for the nominees, your responsibilities are pivotal for the world. I feel it is unfortunate that you did not each get the requisite time that was commensurate with how important your positions are.
▶ 1:53:22Chair Scott: I will ask some questions for the record so that you are not all left out. I want to focus my questions on you, Mr. atkins. I'm deeply concerned about your record. Even in the course of this hearing when asked about why the financial crisis happened, I have here sec distractions, ancillary issues, instead of the question posed to you.
▶ 1:53:52Chair Scott: You said mis-regulation. You mentioned fannie and freddie. Was there anything you got wrong?
▶ 1:54:01Mr. Atkins: Senator, I was one of five commissioners and was not in charge. During that time there were things I disagreed with. When I was talking about distractions, I believe some of the things the chairman was pushing and he had a majority on.
▶ 1:54:22Mr. Atkins: I think it distracted the staff from focusing on the real problems for leveraging the securities industry which contributed to bear stearns' issue, and the underlying issues of fannie and freddie were the securitization of subprime mortgages and the distortions it did to the market place for critical.
▶ 1:54:50Sen. Blunt Rochester: Was there anything you got wrong when you look back? Was there something you would have done differently?
▶ 1:54:57Mr. Atkins: As far as looking at the over leveraging and what the staff did or did not do, I think that is one thing that I believe the sec should have been more on top of.
▶ 1:55:15Sen. Blunt Rochester: Did you vote for the consolidated supervised entity program?
▶ 1:55:20Mr. Atkins: I did. It was a unanimous vote. I asked the question, do you, the staff, have the resources to effectively take on that burden? I was assured by the staff and the chairman yes. I think that was part of the problem.
▶ 1:55:37Sen. Blunt Rochester: Looking back we know that this allowed the five large investment banks to extremely leverage positions and mortgage-backed securities that ultimately failed and bankrupted or seriously destabilized those firms. The sec's inspector general determined the program and the poor oversight of these banks by the sec contributed to the crisis.
▶ 1:56:02Sen. Blunt Rochester: As senator warnock said, we saw people lose their homes, people lose their jobs and their retirement savings. I hope we will learn some lessons. Right now the administration is not really waiting to deregulate. It is dismantling day by day operations.
▶ 1:56:20Sen. Blunt Rochester: It is my offer -- understanding the sec shuttered regional offices, including the philadelphia office that serves delaware and offered buyouts of maybe $50,000 for people to resign or retire. Do you agree with shuttering these regional offices?
▶ 1:56:37Mr. Atkins: It has been 15 years since I was at the agency. I don't really know what the management is like or what the efficiency is or how best to make sure we are using taxpayer money.
▶ 1:56:52Sen. Blunt Rochester: Were they overstaffed when you were there?
▶ 1:56:55Mr. Atkins: I don't really remember. The commissioners don't have influence really over the hr part of the agency. As the chairman coming in, that will be on my desk.
▶ 1:57:10Sen. Blunt Rochester: One of the big concerns is without the staff it is hard to have oversight. A lot of folks rely on the sec. The no action letters for example. Businesses trying to process an ipo. It will be vitally important there be people there that can do the work. Very vital.
▶ 1:57:37Sen. Blunt Rochester: I would just say as a person coming from a state where the financial sector is vitally important, you know, your jobs are important. We have six cdfi's in our state. These institutions support small businesses. They support our communities. I hope there will still be a strong focus on them as well. Thank you, esther chairman.
▶ 1:58:09Sen. Blunt Rochester: -- Mr. chairman.
▶ 1:58:11Chair Scott: Senator also brooks.
▶ 1:58:22Sen. Alsobrooks: I will try to get the four questions. This will undergird the economic success of our country. These are very important questions. Regarding transit, I want to start with congressman molinaro and talk about transit which has traditionally been bipartisan. That is the approach taken towards transit, advancing priorities.
▶ 1:58:50Sen. Alsobrooks: I look forward to working with this committee and with you if confirmed. The first question regards discretionary federal grants that are so important in prayer -- in providing public transit projects. They supplement often the formulas many states use like maryland. Unlike formula funding, these competitive grant allow local and regional transit agencies and partners to secure additional resources for projects that address specific community needs.
▶ 1:59:21Sen. Alsobrooks: I want to list a few important programs, including the capital investment grants program, the buses and bus facilities program, the low or admission program, and the better utilizing investment to leverage development program and ask if you are confirmed, would you advocate for robust funding for these important programs?
▶ 1:59:42Mr. Molinaro: The answer is yes. Having served in local government I understand the value of making sure those additional dollars, while discretionary, are available to regional and smaller transit organizations. I would just say while the mayor was the title I enjoyed the most, county executive is the one where I got the most done.
▶ 2:00:06Sen. Alsobrooks: Thank you so much. Mr. congressman, regarding the transit workers union and the work they do. You mentioned a few moments ago you respect for civil servants. As you know, it is no secret that many of them are my constituents. As you are aware there have been so many firings that have happened unceremoniously.
▶ 2:00:34Sen. Alsobrooks: Are you aware of any plans to fire fte employees if confirmed?
▶ 2:00:41Mr. Molinaro: There is no way I would know that so I don't. I would reaffirm my commitment to both the career staff but also the transit workers who safety and lives are valuable in moving americans. We will work with you and your staff to address the concerns you have for transit workers in particular.
▶ 2:01:00Sen. Alsobrooks: Do you support the reducing of the workforce? You are not may be aware at the moment but are you supportive of reducing the fta workforce?
▶ 2:01:12Mr. Molinaro: If given the honor of serving I will start with those decisions. I will certainly advocate for the workforce and the work they do. As I said, as a local government official, we would have to wake up to do more with less. You have my commitment to advocate for not only the agency but the transit organizations and the people who rely on this transit opportunities across america.
▶ 2:01:40Sen. Alsobrooks: I see the time is totally. -- toling. Mr. atkins, you are asked regarding a case that happened. Acting sec chairman mark une da asked for a loyalty pledge when considering an enforcement action against elon musk about twitter's stock price.
▶ 2:02:11Sen. Alsobrooks: Will you commit to not allowing any political influence from the white house or the department of government efficiency on the sec's supervisory and enforcement decisions against companies?
▶ 2:02:22Mr. Atkins: I think we should call the shots as they are. It's hard to believe in any sort of political --
▶ 2:02:30Sen. Alsobrooks: You would oppose political interference?
▶ 2:02:34Mr. Atkins: I don't there will be anyone I'm chairman.
▶ 2:02:37Sen. Alsobrooks: But if there is, you will oppose it. Would you commit to resisting efforts by doge to ignore the congressional direction regarding staffing and funding for each division because you recognize the funding is set by congress?
▶ 2:02:52Mr. Atkins: I will work with congress and see what the situation is there and take suggestions where they come from. It will ultimately be my decision.
▶ 2:03:03Sen. Alsobrooks: Mr. pettit, quickly I want to ask whether you agree -- secretary scott bessent said cdfi's support main street america. Do you agree with that?
▶ 2:03:17Mr. Pettit: I do. I witnessed the role that cdf fivei'that cdfi -- cdfi's play. >> manufacturer relies on capital investment to build plants by equi -- build plants, buy equipment. It has stagnated in recent years.
▶ 2:03:44Mr. Pettit: The jobs act made it easier for companies to sell stock but there's a huge regular three burden on companies trying to go public -- regulatory burden on company training of public.
▶ 2:03:57Mr. Atkins: There are fewer than 30% or so fewer public, any today than 30 years ago. -- public companies today than 30 years ago. There were a few were coming in through ipo's. A lot of that is the regulatory burden. A lot of that is the litigation issue towards lawsuits and that sort of thing. I think all that needs to be focused on. It is hurting our capital markets and the ability for young companies to get capital.
▶ 2:04:31Mr. Atkins: They rely of course on the private markets. The public markets are dysfunctional.
▶ 2:04:34Sen. Banks: Any ideas on what the sec can do about it? What we can do to work with you to scale that back?
▶ 2:04:42Mr. Atkins: Part of the problem is the sec never fully implement at the jobs act -- implemented the jobs act. We need to look at that and re-examine it and work with you all in congress to maybe have some changes to statutes that could help turbocharge the new issue market.
▶ 2:05:06Sen. Banks: How can we encourage the kind of capital investment that will help american companies compete against china's economy?
▶ 2:05:15Mr. Atkins: There is a lot of capital out there but it is not coming into the public markets because of all the roadblocks. The reglet tory and other sorts of -- regulatory and other sorts of roadblocks. If we can streamline that and have -- encourage people to utilize markets, that will be for the better.
▶ 2:05:38Sen. Banks: I had two more committee hearings going on. I might have missed some of this conversation. You might have already talked about this. The last fcc chairman gary gensler was a big fan of the so-called esg investing. He pressured wall street to adopt it.
▶ 2:05:59Sen. Banks: This is an attempt to force regular people who I represent, hard-working hoosiers at home to invest in companies that promote left-wing social causes they often disagree with instead of companies that build and make great things that sustain the american economy. Do you think esg investing makes america stronger?
▶ 2:06:23Mr. Atkins: I want politics out of the financial markets. Out of how the sec interacts with financial markets. Unfortunately, there were some other who were using other people's money to try to influence corporations through the distortions of the corporate governance process and that sort of thing. That will end.
▶ 2:06:48Mr. Atkins: We will have protections in place so that money managers and others will be focused on actual investment saturday and on politics.
▶ 2:07:00Sen. Banks: How can we encourage investors to fund companies that make things?
▶ 2:07:07Mr. Atkins: I'm sorry?
▶ 2:07:09Sen. Banks: Invest in common is that actually make things and build things. I think about indiana with the number-one manufacturing state per capita in the country. What committee to remote investors to invest their rather than -- there rather than woke causes? We went investors to invest in companies that make things, not in other social causes.
▶ 2:07:40Mr. Atkins: Some of that is maybe a distortion in the way some of these companies -- these money managers have sold products. Ultimately the marketplace -- the investors themselves, you have seen the whole shift recently away from those sorts of funds you are talking about into more not 10 volts type of things.
▶ 2:08:08Mr. Atkins: That is good -- nuts and bolts types of things. That is good for our economy.
▶ 2:08:14Chair Scott: That concludes the questions and answers portion of today's hearing. I would like to thank our nominees for testifying before the committee and thank you for serving our country. For senators, following questions rs, following questions must ollowing questions must belowing questions must be owing questions must be submitted by noon tomorrow, friday, march 28. For the witnesses, please respond by monday, march 31 at noon to the written questions you received to facilitate the committee processing you are nominations.
▶ 2:08:44Chair Scott: With that, this hearing is adjourned.