institutions that have received enormous tax support from citizens who are earning 30,000 bucks a year and seeing their tax money going to help the instituti/nk a#@ rr$#krrf'rr rr people are feeling under great pressure right now. this is a mammoth program. it has taken some time to get rolling. all of us are impatient and we want it to work as quickly as possible, because people are suffering every day. people are working day and people are working day and night. i'm encouraged, as i mentioned before, that more banks are becoming involved. the banks who account for -- other financial institutions, at least 75% of mortgage loans are involved in this program right now. it's taken them time to build their staffing, to change some of their systems, to be able to

implement this program as it's designed, and it's frustrating when we all want to see this operating overnight. because we know people out there need this immediately. so, i can assure you that if i'm confirmed, i'll be working with others within the government. i know that secretary donovan's very concerned about this, secretary geithner, not to mention president obama. there's a great deal of pressure on everyone to get this program out as fast as possible, working closely with the banks. and they're making, i think, great efforts, too. now, we have to do more. we have to reach more institutions. we have to reach more people. it's important that they know these programs are available. and in the case you mentioned, i think, you know, it's important that we try to get as many banks as possible involved in this program. and i'd be happy if i'm confirmed to talk with you or your staff about this. and learn more about those

situations. i think we have to be -- everybody's got to be working maximum effort to try to make this program effective. >> i appreciate your statement. and what i think i can characterize a commitment. it's a high priority for you. >> yes. >> maximum commitment. >> yes, sir. >> or effort to make this program succeed. thank you. >> thank you. >> thank you very much, >> senator reid has joined us. i'm going to have to slip out in a minute. will take the gavel to finish the hearing, i've been told you are anyway. the issue was raised by senator shelby about aig. and on may 20th the issue came up dealing with creditors and counterparties. counterparties. and obviously a lot of the attention was focused on bonuses and so forth. and at the same time there were announcements about the creditors and counterparties that didn't get anywhere near the same attention. while the value of aig stock has

declined, obviously, creditors and counterparty were getting paid 100% of value. the issue that many of us raised here is who is doing the negotiating? we're an 80% owner and here counterparties are getting 100 cents on the dollar. doesn't sound like a great negotiating position it seems to me, given the exposure of the dollar amounts. what i'd like to know -- i realize you're not in that job yet, but what tools do you feel the government needs to negotiate the best terms for taxpayers? do we need to give you any additional tools? if there's something we should be doing, i need to know about it. if there's something you need to negotiate better, then we like to know what they are and how they intend to be used. i don't want you to tell me necessarily what the answer ought to be, but the answer that we can't do anything, that we just have to accept this is unacceptable. i think to most of us anyway, just unacceptable. given the exposure we're talking

about. >> mr. chairman, i think everybody's frustrated about the aig situation. i think that's a major reason why the secretary and others are working hard on financially reregulation. there was no mechanism for the orderly resolution of the aig problem. and there needs to be if, god forbid, there ever is another situation like that. i think one of the practical implications -- and i'm not involved in the aig matter directly -- but there were cross the fault clauses between -- that would trigger defaults across aig's exposures to counterparties and debt holders that would have caused a massive problem within the financial system given the size of that entity. and that could have had ripple effects throughout the banking system. so i think that the government has been doing what it can in that very difficult, very complex situation to protect the

interests of taxpayers. that's frustrating. and i think that's a very strong reason why there's a need to put new measures in place that can deal with this situation like that if it ever does happen again. >> well, the resolution mechanism is clearly something we've got to deal with. but again, the negotiating process that goes on, i believe the tools are there. the question of whether or not you buy into the notion that any negotiation that could in any way diminish something less than 100 cents on the dollar value would somehow create the kind of economic problem that you just mentioned or not, i know there's a pretty significant debate, i'm not satisfied that's the case. but i'm going to continue raising this issue as i'm sure others will because again the exposure dwarfs a lot of headlines about the bonuses. the bonuses by comparison to exposure here is no comparison. just a vast difference we're talking about. let me turn to senator reid. and thank you very much. we look forward to moving your nomination as soon as we possibly can.

thank you again for your willingness -- >> thank you. >> welcome to your family as well. delighted to have them. >> thank you very much. >> thank you also, mr. allison. chairman dodd. senator warren raised the issue of warrants which is close to my concern, also. just once again to emphasize with the recent legislation, you have complete flexibility on the use of the warrants. and i urge you to use that flexibility wisely. there's an issue that, frankly, a question that's just come to mind. the t.a.r.p. fund has received two forms of payment, the principal that was advanced and also interest on the preferred. does that interest refer back to the t.a.r.p. program and another question related was the value of the warrants, the profits from the warrants. does that go back into the top

program? >> moneys that are received go into the general funds of the u.s. treasury. the amount advanced initially is then deducted from the amount outstanding under the $700 billion limit. i will double-check that for you, but that's my derstanding. >> so essentially what the repayment would restore the ability to extend the principal amount that's repaid, but the addition additional, the profits and the value of the warrants, they go back to the general treasury. >> that's my understanding. i will go back and doublecheck it for you. >> thank you very much, mr. allison. i will assume that you looked at the april 21st report of the special i.t. for t.a.r.p. >> yes, sir. >> i think you did a good job of laying out the problems of transparency oversight. do you have any thoughts about these recommendations and how to

implement them? and if you covered them before, i apologize. >> i had begun in my first week in the treasury to meet with the inspector general. i meet with him every week, if not more often. our staff at the treasury meets with him also and his staff. we are, i think, all intent on making sure these programs are very well controlled. and that there's as much transparency as practical given the need for these program to be quite broad. i know the inspector general shares those perspectives. so we are respectful of his findings and we take them very seriously and we're working with him to find practical ways of dealing with those concerns. >> and there's another issue, potential issue. i know the regulators are doing a great deal to avoid an issue. that is a reapplication to t.a.r.p. for an institution that might pay out but then need

additional assistance. is -- are you establishing any procedures for that? or is that something that's still off on the horizon? >> senator frank confirmed we'll certainly look at that. and i'll be happy to meet with you and your staff on that question. >> thank you, mr. allison for your willingness to serve. i think you began as a lieutenant or an ensign in the united states navy. thank you very much. >> thank you very much. >> senator, do you have any further questions? >> i'd like to ask one more question, if appropriate. one of the concerns that i have is related to the program and the possibility of manipulation between buyers and sellers. i believe that t.a.r.p. recipient banks are not going to be participating in the legacy loans program but that no such restrictions have been put into place for the legacies security program which will be managed by

the treasury and the fed under talf. any insights on you have basically parties with an interest on both sides of the transaction? >> well, there are going to be very clear conflict of interest rules in the public/private partnership. those rules are also being discussed with the special inspector general as well as the people within treasury. and i think it's very important for the credibility of the program and to protect the taxpayers that the program be administered in a way that prevents such conflicts of interest. >> absolutely. thank you. >> thank you. >> mr. allison, there's been a few figures floating around about how much is left to be invested or loaned, however you want to put it. have you been able too take a peek and see what's left out there, how many billion are

left? >> it's roughly $100 billion, senator, that is available today. >> as as things unfold here, your crystal ball being as clear as anybody's, what kind of criteria do you see utilizing for poestentially investing tho dollars? >> i believe it is important that we leave some headroom in this program because we're not yet out of this crisis. >> correct. >> and i thing the treasury, the government needs some flexibility so that if there's a need in the future, we can intervene in a timely manner on behalf of the american public. >> so is 100 $100 billion which think is significant for

headroom? >> i wouldn't want to place a number on that. we all have to be vigilant and there needs to be flexibility in this program so we can act on behalf of the american people, if necessary. >> thank you very much. i appreciate you putting yourself over in public service and going through all the questions. >> thank you. >> i also appreciate your family for being here. i think behind every good guy there's a good family. so we appreciate that. thank you very much. >> thank you, sir, thank you, senator. [captions copyright national cable satellite corp. 2009] [captioning performed by national captioning institute]

>> this weekend on "q&a," government daniels. that is sunday at 8:00 p.m. and here is a look at some of our weekend programming. this weekend, on c-span2 "book tv," the largest literary event. saturday, starting at 11:00 eastern and throughout the day, panels and offers on the economy, globalization and the american worker, homosexual rights, former illinois gov. rod blagojevich, the mob and counterfeiting, and a look at the graphic adaptation of some works. later, on "afterwords," tony blair, nelson mandela, and

others. he is interviewed by someone from the bush-cheney white house. and then, bill ayers, the university of illinois professor and former weather underground member. he talks against white supremacy, and he will take your calls as well as questions from the audience. for a complete schedule of this weekend's schedule, fox online to booktv.org -- go on line. >> how is c-span funded? >> i do not know. >> from public television? >> i do not know where the money comes from. >> contributions from donors? >> how is c-span funded? 30 years ago, america's cable companies created c-span as a public service. no government mandate, no government money. >> earlier today, president

obama had a meeting with german represented angela merkel. here is the schedule. he has stops in france tomorrow in paris and normandy, where he will celebrate the 65th anniversary of d-day. his speech in cairo, egypt, continues to generate attention. we will show it again on sunday here on c-span. now, craig newmark, creator of craigslist. this is about 55 minutes.

>> craig new2mark probably does not need much introduction, but because we will be on c-span, maybe more. it was created in 1995 and has grown to an online communities spanning almost 600 cities in 60 countries. craig continues to serve as a customer-service representative for craigslist. you should also note that he is a supporter of cfp. we advertised the conference for the first time on craigslist in san francisco. most importantly, craig is an

advocate for internet freedom. i'm sure he will touch on some of the advances involving internet freedom, and craig has been involved. he has always been a principled stand, doing so notwithstanding the risks, so i am really thrilled that he is going to be having a conversation today. we have another person also very well known to this audience. saul hansell joined "the internet -- "the new york times" and examines business and technology and policy questions, so, craig, i am looking forward to an interesting and engaging conversation. >> thank you, and think you all for spending time. i have not been to this conference before. i have been a business and technology writer, a business blurs into technology in many ways, and i think that is a lot

of what we are going to be talking about with craig. a transition from engineer to business executives to political activists, and i think we can explore the political ideology born of the cubicle. " think about one century ago, there were ideologies that were borne from the assembly line. i think the ethic of the engineer, which i think craig, may may well embody, the clariy over artifice, it has led to a political movement and a political thought process that in a moderate way, all through the obama administration, and in

a very pure red, is sitting here on my right, and i think we can talk about -- in a very pure way, is sitting here on my right. i think some of the ideas about government efficiency, which have been very important to craig, stem out of that ideology, and we will talk more about craigslist and have a lively discussion that this community is famous for, and we can start with asking craig if that makes any sense, what i just said. do you think your experience as an engineer has informed how you read the company and as you got more active in politics how you look at how you want to change the world? >> there is a lot of stuff in that one, and first, i would like to welcome the c-span viewers.

cutting to the chase, i am a nerd. i grew up in high school wearing a plastic pocket detector -- protected. but now, in the city, nerds and wonks are living and working together, and if i may quote the president more or less, he is on the record as doing this. "star trek" fans will recognize that also, i have abandoned my dignity altogether. i am not an activist. i am not really interested in politics. the thing is that we are now in a time where we are seeing tremendous change, when i feel that a reasonable good system of participatory or representative democracy is being complemented by the beginnings of a fairly

good system of network democracy. i think things are changing in ways that we have never seen before in human history, so i want to overcome my eight natural tendency to be a couch potato, and i do like tv, and i just kind of stand up for other people right now -- and i want to overcome my natural tendency to be a couch potato. as an engineer, a nerd, i can tend to be impatient at times with the slow pace of development in whatever area i am dealing with. he might be right in saying that i'd like to get to the point. brevity is the soul of wit, and yet, i'm spending a lot of time with people who make things go and who are getting things done in this town, and that is what i am trying to become about. that is changing things so that the ethics of the engineer and the ethic of the nerd, that israel, although, definitely,

for the last 10 years, i have not done anything technical. i stopped coidinding years ago,d that makes me sad, but customer service is a form of service, and i believe in the nobility of public service, and i am trying to act on that, and that is why i am spending more time in this town. that is even why i am wearing a jacket and tie now. [laughter] >> so what is your political agenda and that if you picked some organizations to become more active in, to give your money to. if you were going to talk about the things you want to make different about the world, what are they? >> well, the idea is that we have this movement going on, this somehow big effort, this excitement in this town about, well, changing the way government works, about making

the government which does in a lot of ways returned to the ideals of the founders. i mean, certainly, they created a flawed system, which we have improved since, but now and then, we have the drama, which is hard to see, but it is something that is under reported, but we have a government that is slowly transforming itself from the inside and from the bottom-up. i have been spending time with folks, frankly, the last time i was in this room, i was speaking to a lot of people, including a federal council, and these are folks for whom somehow around a certain time last year, it was as if the darkness lifted, and they feel like they -- you know, they feel the power to do their jobs again, to do it well, and they are working at how to make that real. they are trying to figure out, for example, how they can use the ordinary consumer products

every day with twister and facebook to do the right thing for the community. -- with twitter. this is happening again. this is a really big thing, and me, i am standing up to try to do that. i am considering whether i should dedicate a big chunk of my life to helping the people who are doing the real change right now. i am serious about this, and i am trying to work with people throughout government here but also in states and different places, focusing on the big ideals and the small stuff. in san francisco, for example, we have a 311 system. it is about, well, you see and pothole, you can get it fixed. what they are announcing in san francisco, it is monday, but it has to do with the integration of 311 happening right now with

twitter. the deal is, you see a pothole, utah border -- you twitter it to the system. in britain, there is a iphone app. you take a photograph, you geo targetarget, and it goes. the arc of the universe is long, but it bends towards justice. i figured the energies i have should be channeled towards making sure that really happens, towards nurturing that trend, and as an inpatient guy, i went to accelerate it. >> what does that mean -- i wanted to accelerate it. >> i went to find the people and supporting them -- i want to

accelerate it. i want to find the people and support them. as a nerd and former engineer, i am used to being the person who does stuff, a thing doer, and now, they tell me my great value is the person who talks about the great value of what other people do, and if that is what it takes, i will do it. >> so someone as impatient as you may be, you look at the promises the administration made during the campaign, and you look at the first six months, how do you grade the administration so far? what is working the way you wanted to, and what do you think needs to be changed? >> i think what is going on right now by a lot of people, there is the open government initiative, and they are open for government.

the deal is that i spent a lot of time in the corporate world, working with large organizations, and when you have large organizations, and the federal government is a large organization, you have a lot of people with a lot of entrenched power. there are a lot of stakeholders, and this takes a long time, and the idea is that management and a lot of cases, well, they need time to understand what the effects will be of stuff like social media. getting into that context, the folks at the white house are moving pretty fast. and new things are coming almost every day, it seems. there are more and big initiatives coming. recently, this open government stuff happens,ed, and it could e that the ideas scale may just be

discussion board of my dreams. specifically, i want to see a discussion board that can scale to millions. i want to see a discussion board where people of goodwill can vote up the good stuff and voted down the bad stuff. right now, they are having problems with the buzzards who are twirling like crazy, but considering that, this discussion board does consider this. what we have is a network of genuine grass-roots democracy which can be used by people to have actual two-way communications with the government, and this realizes in some large part, not completely, but in a big way the dream of democracy that people have had for a long time, so big stuff happening. that is why i am trying to stand up. >> that is a transition to what i think is an interesting discussion of craigslist itself,

and you always describe craigslist as a community where the community is in charge. there is also a for-profit business, where there are some constraints you have to deal with, and i am interested in what lessons we can drop from your 10-plus years at craigslist about how communities can be organized in an effective way and sometimes in an ineffective way that might be applicable to the vastly larger question of government korea what were the mistakes that you made in terms of how to empower people on craigslist that you've learned for -- from as you have gotten better? >> there are a whole bunch of questions in that one. the big one is that people are overwhelmingly trustworthy and good. if you trust people and give them the mechanisms for self- policing, that will work. there are bad guys out there. there is not a lot of them.