Federal News Service - Hearing of the House Financial Services Committee - Transcript

Federal News Service

HEADLINE: HEARING OF THE HOUSE FINANCIAL SERVICES COMMITTEE

SUBJECT: LEGISLATIVE PROPOSALS TO IMPLEMENT THE RECOMMENDATIONS OF THE 9/11 COMMISSION

CHAIRED BY: REPRESENTATIVE MICHAEL OXLEY (R-OH)

WITNESSES: STUART LEVEY, TREASURY UNDERSECRETARY FOR TERRORISM AND FINANCIAL INTELLIGENCE; AND BRIAN ROSEBORO, TREASURY UNDERSECRETARY FOR DOMESTIC FINANCE

LOCATION: 2128 RAYBURN HOUSE OFFICE BUILDING, WASHINGTON, D.C.

BODY:

BREAK IN TRANSCRIPT

REP. BRAD SHERMAN (D-CA): Mr. Chairman, one issue that we probably won't deal with this year, but is related to terrorism, is to have circuit-breakers and other responses available if there is a market panic, because a terrorist act could cause such a panic.

I believe that such a panic may also be caused by a meltdown of the dollar, given the fact that we are running a half-trillion-dollar budget deficit, a half-trillion-dollar trade deficit, and that we are increasing our status as the world's largest creditor nation in history-rather, largest debtor nation in history, by half a trillion dollars every year as that debt to the world adds up.

And so I would hope, Mr. Chairman, and Mr. Ranking Member, that next year we have separate hearings dealing with the possibility of a market panic, and particularly one that is international and that focuses on currency markets. You may not join me in having as great a fear as I do that we are headed toward a crisis sometime in the next decade, but you may agree with me that it would be wise to prepare for such a crisis.

I yield back.