starttime 1260540042.88753
AS YOU CAN
ON THEIR FINANCIAL OVERHAUL
BILL.
WE APPRECIATE YOUR BEING WITH
US, ENJOY THE REST OF YOUR DAY.
THE SPEAKER PRO TEMPORE: THE
HOUSE WILL BE IN ORDER.
THE CHAIR LAYS BEFORE THE HOUSE A COMMUNICATION FROM THE
SPEAKER.
WASHINGTON, D.C., DECBER 11,
2009.
I HEREBY APPOINT THE HONORABLE
DONNA F. EDWARDS TO ACT AS
SPEAKER PRO TEMPORE ON THIS
DAY.
SIGNED, NANCY
OF THE HOUSE OF
REPRESENTATIVES. THE SPEAKER PRO TEMPORE: THE
PRAYER WILL BE OFFERED BY OUR
CHAPLAIN, FATHER COUGHLIN.
CHAPLAIN COUGHLIN: I
YOU, O LORD, AND YOU STOOPED
YOU HEARD MY CRY AND DREW ME
FROM THE DEADLY PIT FROM THIS
CLAY.
YOU SET MY FEET UPON SOLID ROCK
AND HELPED ME MAKE MY FIRST
STEPS INTO THE LIGHT OF A NEW
DAY.
YOU PUT A NEW SONG INTO MY
MOUTH, AND FROM THE LORD, GOD, I OFFERED YOU
PRAISE.
AMEN.
CHAIR HAS EXAMINED THE JOURNAL
OF THE LAST DAY'S P
AND ANNOUNCES TO THE HOUSE HER
APPROVAL THEREOF.
PURSUANT TO CLAUSE 1 OF
THE JOURNAL STANDS APPROVED.
FOR WHAT PURPOSE DOES THE GENTLEMAN FROM
RECOGNITION?
>> MADAM SPEAKER, PURSUANT TO
CLAUSE 1 OF RULE 1, I DEMAND A
VOTE ON THE SPEAKER'S APPROVAL
OF THE JOURNAL.
THE SPEAKER PRO TEMPORE: THE
QUESTION IS ON AGREEING TO THE
SPEAKER'S APPROVAL OF THE
JOURNAL.
THOSE IN FAVOR, PLEASE SAY
THOSE OPPOSED, PLEASE SAY NO.
THE AYES HAVE IT.
THE JOURNAL STANDS APPROVED.
MR. KLEIN: MADAM SPEAKER,
OBJECT TO THE VOTE ON THE
GROUNDS THAT A QUORUM IS NOT
PRESENT AND I MAKE A POINT OF
ORDER THAT A QUORUM IS NOT
PRESENT.
THE SPEAKER PRO TEMPORE:
PURSUANT TO CLAUSE 8 OF RULE
20, FURTHER PROCEEDINGS ON THE
QUESTION ARE POSTPONED.
THE PLEDGE OF ALLEGIANCE WILL
BE LED BY THE GENTLEMAN FROM
MR. LANCE: I PLEDGE ALLEGIANCE
TO THE FLAG OF THE UNITED
STATES OF AMERICA AND TO THE
REPUBLIC FOR WHICH IT STA
ONE NATION UNDER GOD,
INDIVISIBLE, WITH LIBERTY AND
JUSTICE FO
THE
CHAIR WILL ENTERTAIN UP TO FIVE
REQUESTS FOR ONE-MINUTE
SPEECHES ON EACH SIDE OF THE
AISLE. FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM OHIO RISE?
MR. KUCINICH: GOOD MORNING,
MADAM SPEAKER.
I ASK PERMISS
HOUSE FOR ONE
THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION, THE
GENTLEMAN IS RECOGNIZED FOR ONE
MR. KUCINICH: YESTERDAY, OUR
PRESIDENT MUSED ABOUT THE
INEVIDENTIBILITY OF WAR, WAR'S
INSTRUMENTALITY OF WAR AND
PEACE.
IT'S IMPORTANT TO REFLECT ON
HIS WORDS BECAUSE ONCE
REBELIEVE IN THE
INEVIDENTIBILITY OF WAR, WAR BECOMES A SELF-FULF
PROPHECY.
ONCE WE'RE COMMITTED TO WAR'S
INSTRUMENTALITY AND PEACE WE
BEGIN THE ORWELLIAN JOURNEY
WHERE WAR IS PEACE, WHERE THE
MOMENTUM OF WAR OVERWHELMS WAR
FOR PEACE.
WE CAN EASILY LEGIT MATE THE
WHOLE SLAUGHTER OF INNOCENCE.
THE WAR AGAINST IRAQ WAS BASED
ON LIES.
AND THE WARS IN AFGHANISTAN AND
PAKISTAN WAS BASED ON FLAWED
DOCUMENTS.
SOMETIMES IT'S JUST WAR.
AND OUR ABILITY TO RETHINK THE
TERMS OF OUR EXISTENCE, TO
EXPLORE THE POSSIBILITY OF
PEACE WITHOUT WAR MAY WELL
DETERMINE W
WAR ENDS US.
THE SPEAKER PRO TEMPORE: THE
GENTLEMAN'S
FOR WHAT PURPOSE DOES THE
GENTLE
MR. LANCE: TO ADDRESS THE HOUSE
FOR ONE MINUTE.
THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION, THE
GENTLEMAN IS RECOGNIZED FOR ONE
MINUTE.
MR. LANCE: MADAM SPEAKER, I
RISE TODAY TO CONGRATULATE THE
SUMMIT HILLTOPPERS WHO CAPTURED
THE NEW JERSEY GROUP II, NORTH
II STATE SECTIONAL FOOTBA
TITLE ON DECEMBER 3 AT GIANTS
STADIUM.
COACHED BY JOHN, THE
HILLTOPPERS WON A 28-19 VICTORY
ON OFFENSE, THE HILLTOPPERS
WERE LED BY THE QUARTERBACK AND
RUNNING BACK.
FOR THE GAME, THE RUNNING BACK
RAN FOR 119 YARDS WHILE
COMPLETING SIX PASS ATTEMPTS
FOR 134 YARDS.
REYES FINISHED WITH 167 YARDS
ON THE GROUND AND TWO
TOUCHDOWNS ON 16 CARRIESES.
THE SUMMIT DEFENSE WAS LED BY
MICHAEL STEINBERG, MIKE WATTS,
RYAN O'MALI, DANNY FEENEY, HELD
THE ORANGE TO JUST 19 POINTS.
I ASK ALL OF MY COLLEAGS TO
JOIN ME IN CONGRATULATING THE
COACH AND THE ENTIRE SUMMIT
HILLTOPPERS FOOTBALL TEAM FOR
THEIR VICTORY OVER ARE ORANGE
TO WIN THE STATE SECTIONAL
TITLE.
THANK YOU, MADAM SPEAKER.
THE SPEAKER PRO TEMPORE: THE
GENTLEMAN'S TIME HAS EXPIRED.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM WASHINGTON RISE?
CONSENT TO
FORNE MINUTE AND TO REVISE
AND EXTEND MY REMARKS. THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION, THE
GENTLEMAN IS RECOGNIZED FOR ONE
MINUTE.
MR. DICKS: MADAM SPEAKER, IT IS
WITH GREAT SADNESS THAT I COME
BEFORE THE HOUSE TO NOTE THE
DEATH OF A LEADER IN THE CIVIL
AVIATION INDUSTRY AND THE MAN
FAMILIAR TO MANY HERE IN
MR. ED SIMPSON, WHO SERVED AS
PRESIDENT OF THE GENERAL
AVIATION MANUFACTURERS
ASSOCIATION FOR 19 YEARS, DIED IN HIS HOME ON NOVEMBER 25 IN
BOISE, IDAHO.
MANY OF US IN THIS CHAMBER RECALL THAT HE WAS THE DRIVING
FORCE BEHIND THE GENERAL AVIATION REVITA
WHICH ALTERED THE LIABILITY OF SMALL AIRCRAFT MANUFACTURERS
AND LED TO A REINVIG RATION OF
THE SMALL AIRCRAFT INDUSTRY IN
THE UNITED STATES.
AFTER HE RETIRED FROM DIRECT
LEADERSHIP OF THE ASSOCIATION,
HE TOOK ON A NEW PROJECT, THE
BE A PILOT CAMPAIGN THAT WAS
DESIGNATED TO I
POPULATION OF STUDENT PILOTS IN
THE UNITED STATES. IT WAS A GREAT SUCCESS.
NOT ONLY IN ENLARGING THE
NUMBER OF CITIZENS CAPABLE OF
FLYING LIGHT AIRCRAFT BUT ALSO
IN PROVIDING A TECHNOLOGICAL BOOST TO THE MANUFACTURING
INDUSTRY THAT RILTED IN THE
DESIGN AND CON-- RESULTED IN
THE DESIGN AND CONSTRUCTION OF
NEW AIRCRAFT.
HE WAS PART OF THE NATIONAL
AVIATION CIVIL ORGANIZATION.
HE SERVED IN THAT POST AS
AMBASSADOR THROUGH 2004.
AND HE WAS ONE OF THREE
AMBASSADORS TO BE REAPPOINTED
BY PRESIDENT GEORGE W. BUSH.
HIS REAPPOINTMENT WAS INDICATIVE OF THE BIPARTISAN
APPROACH THAT HE BROUGHT TO ALL
OF HIS ENDEAVORS.
HE WAS THE RECIPIENT OF THE
WRIGHT BROTHERS MEMORIAL TROPHY
FOR LIFETIME ACHIEVEMENT.
HE WAS A GREAT LEADER, A GREAT
FRIEND TO MANY OF US AND HE
WILL BE GREATLY MISSED.
ALSO, MADAM SPEAKER, I'D LIKE
TO HAVE A
BY A LONG-TIME FRIEND OF HIS,
MR. TED VAN DYKE.
THANK YOU.
THE SPEAKER PRO TEMPORE: THE
GENTLEMAN'S TIME HAS EXPIRED. FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM GEORGIA RISE?
MR. GINGREY: MADAM SPEAKER, TO ADDRESS THE HOUSE FOR ONE
MINUTE AND TO REVISE AND
EXTEND.
THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION, THE
GENTLEMAN IS RECOGNIZED FOR ONE
MINUTE.
MR. GINGREY: MADAM SPEAKER,
YESTERDAY, THIS HOUSE VOTED ON
A 2,500-PAGE SPENDING BILL WITH
A PRICE TAG OF ALMOST HALF
TRILLION DOLLARS THAT WE WILL
HAVE TO BORROW.
THE MARITY IN THIS HOUSE JUST
DON'T SEEM TO GET IT. WE ARE IN THE MIDST OF A
RECESSION, 15.4% UNEMPLOYMENT
-- EXCUSE ME -- 10%
UNEMPLOYMENT, 15.4 MILLION
PEOPLE OUT OF WORK.
OUR FEDERAL DEFICIT IS OVER $12
TRILLION, AND THE DEMOCRATS
WILL VO
THAT ANOTHER $1.8 TRILLION.
YET, THIS HALF TRILLION-DOLLAR
SPENDING BILL WHICH COMBINES
SIX INTO ONE REPRESENTS A 12.5%
SPENDING INCREASE OVER 2009 AND
A 24% INCREASE OVER 2008.
24% OVER 2008.
I ASK HOW MUCH OF THIS IS REAL
NEEDS OF OUR CITIZENS VERSUS
JUST ONCE OF SPEND THRIFT
POLITICIANS.
MADAM SPE
SPENDING SPREE.
WE NEED TO HAVE THE ABILITY T
MAKE TOUGH CHOICES TO GET OUR
ECONOMY BACK ON TRACK AND PASS
LEGISLATION THAT HELPS AMERICAN
FAMILIES LOOKING TO MAKE ENDS
MEET IN THESE TOUGH TIMES.
GENTLEMAN'S TIME HAS EXPIRED.
MR. GINGREY: A I YIELD BACK.
THE SPEAKER PRO TEMPORE: THE
GENTLEMAN'S TIME S EXPIRED.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM IOWA RISE?
>> TO DDRESS THE HOUSE FOR ONE
MINUTE.
THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION, THE
GENTLEMAN IS RECOGNIZED FOR ONE
MINUTE.
>> THANK YOU, MADAM SPEAKER.
I -- THE UNITED STATES HAS THE
SAFEST, MOST PLENTIFU
BENEFICIAL FOOD SUPPLY IN THE
WORLD.
THIS ABUNDANT FOOD SUPPLY
WASN'T BY ACCIDENT.
THEY PUT PRACTICES IN PLACE
WHICH ALLOW US TO CONTINUE TO
FEED THE WORLD AT AFFORDABLE
PRICES.
HOWEVER, AGRICULTURE AND THOSE
PRODUCTION PRACTICES ARE UNDER
ATTACK.
SOME IN CONGRESS WOULD BAN THE
USE OF ANTIBIOTIC.
AS A FARMER AND FORMER CHAIRMAN
OF THE LIVE STOCK SUBCOMMITTEE,
THE USE OF ANTIBUY OTTICS IS
SOMETHING I HAVE BEEN INVOLVED
IN.
THEY HAVE DEVELOPED A
RESPONSIBLE USE GUIDELINES.
PRODUCERS DIDN'T DEVELOP THESE GUIDELINES BECAUSE CONGRESS
TOLD THEM TO DO SO.
THEY DEVELOPED THE GUIDELINES
BECAUSE IT WAS THE RIGHT THING
TO DO FOR THEIR ANIMALS AND
CONSUMERS.
THOSE THAT WOULD BAN ANTIBUY
OTTICS HAVE -- ANTIBUY OTTICS
HAVE A GOAL.
-- ANTI-BIOTICS HAVE A GOAL.
INDUSTRY WITHOUT DATA TO BACK
UP THEIR CLAIM.
THE SPEAKER PRO TEMPORE: FOR
WHAT PURPOSE DOES THE
GENTLEWOMAN FROM OHIO RISE?
MS. SCHMIDT: TO ADDRESS THE
HOUSE FOR ONE MINUTE. THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION.
MS. SCHMIDT: THIS COUNTRY'S
A. CREDIT RATING WILL GO
DOWN IF WE CAN'T H
UNSUSTAINABLE DEFICIT.
WE RAN A$1.4 TRILLION DEFICIT
LAST YEAR AND WE ARE ON TRACK
TO DO THE SAME THIS YEAR.
THIS HOUSE PASSED SIX
APPROPRIATIONS BILLS IN AN
OMNIBUS PACKAGE WITH ALMOST
HALF A TRILLION DOLLAR PRICE
TAG.
13% MORE THAN THE PRIOR YEAR
FOLLOWING A BLOATED STIMULUS
PACKAGE.
WE A
NATION TO ECONOMIC PROSPERITY,
BUT WE CAN'T DO IT AND
SIMULTANEOUSLY RUN OUR NATION
WITHOUT FISCAL RESPONSIBILITY.
MY GRANDCHILDREN WILL NOT BE
ABLE TO AFFORD THE MOUNTAIN OF
MOODY'S HAS WARNED US TO STOP
IT AND STOP IT NOW OR LOSE OUR
A.A.A. CREDIT RATING BY 2013.
THIS CONGRESS MUST GET THE
MESSAGE, GET THE MESSAGE NOW.
STOP THE UNNECESSARY SPENDING.
I YIELD BACK MY TIME.
THE SPEAKER PRO TEMPORE: THE
GENTLEWOMAN'S TIME HAS EXPIRED.
GENTLEMAN FROM CONNECTICUT
RISE?
>> TO ADDRESS THE HOUSE FOR ONE
MINUTE AND TO REVISE AND
EXTEND.
THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION, THE
GENTLEMAN IS RECOGNIZED FOR ONE
MINUTE.
>> MADAM SPEAKER, TODAY WHEN WE PASS THE WALL STREET REFORM AND
CONSUMER PROTECTION ACT, IT
WILL TAKE A HUGE STEP TOWARD
THE PROTECTION OF THE AMERICAN
CITIZENS, THE AMERICAN TAXPAYER
AND THE AMERICAN BUSINESS.
NEVER AGAIN WILL WALL STREET
TAKE MASSIVE RISKS WITH THE
EXPECTATION THAT THEY WILL BE
BAILED OUT WHEN THEY FAIL. NEVER AGAIN WILL MORTGAGE
BROKERS SELL MORTGAGES THAT
THEY KNOW CAN'T POSSIBLY BE
REPAID.
NEVER AGAIN WILL THE CREDIT
CARD COMPANIES MAKE BILLIONS
FROM SELLING CONFUSION AMONGST
AMERICAN CONSUMERS.
I'VE BEN ST
BY HOW CLOSELY WHAT WE'RE DOING
TODAY MIRRORED WHAT HAPPENED IN
THE 1930'S WHEN THIS CONGRESS
CREATED A REGULATORY STRUCTURE.
THE OPPOSITION SAID THIS WOULD
BE TH
END OF MARKETS AND INSTEAD THAT
REFORM LED TO 60 OR 70 YEARS OF
THE MOST INTENSE
HUMAN RACE HAS EVER SEEN.
WORD FOR WORD THOSE CHARGES
HAVE BEEN REPEATED.
THEY WERE WRONG THEN AND THEY
ARE WRONG NOW.
BE A TREMENDOUS STEP FORWARD
FOR THE AMERICAN PEOPLE AND THE
AMERICAN ECONOMY.
THE SPEAKER PRO TEMPORE: THE
GENTLEMAN'S TIME HAS EXPIRED.
GENTLEMAN FROM SOUTH CAROLINA
RISE?
ASK PERMISSION TO ADDRESS THE
HOUSE FOR ONE MINUTE AND TO
REVISE AND EXTEND MY REMARKS.
THE SPEAKER PRO TEMPORE:
WITHOUT OBJECTION, THE
GENTLEMAN IS RECOGNIZ
MINUTE.
MR. WILSON: MADAM SPEAKER, THIS
WEEK I STOOD WITH MY COLLEAGUES TO INTRODUCE A BILL TO AUDIT
STIMULUS FUNDS.
IT'S TIME FOR CONGRESS TO
DEMAND ANSWERS ON BEHALF OF THE HARDWORKING TAXPAYERS THAT WE
REPRESENT.
THE MISNAMED STIMULUS IS ONE OF
THE LARGEST SPENDING BILLS IN
OUR NATION'S HISTORY.
IT IS CRITICAL THAT AMERICAN
TAXPAYERS KNOW THE FACTS.
THIS IS THE PEOPLE'S MONEY, NOT
THE GOVERNMENT'S MONEY.
IT IS WRONG THAT A
WELL-CONNECTED DEMOCRAT
POLLSSTER RECEIVED $6 MILLION
TO PRESERVE JUST THREE JOBS
WHEN WE COULD PROVIDE JOBS FOR
DOZENS OF FAMILIES.
I URGE SPEAKER PELOSI TO
CONSIDER OUR LEGISLATION TO
ENSURE FULL ACCOUNTABILITY OF
EVERY DOLLAR SPENT.
I FIRST SENT A LETTER TO THE
PRESIDENT ASKING HIM TO
IMPLEMENT THE RECOVERY PANEL
THAT THE STIMULUS BILL
PROVIDES.
THE REQUEST WENT UNANSWERED.
THEREFORE, INTRODUCED A
NATIONAL COMMISSION TO
INVESTIGATE HOW MANY JOBS HAVE
ACTUALLY BEEN SAVED OR CREATED.
TAXPAYERS SHOULD KNOW WHERE'S
THE JOBS.
IN CONCLUSION, GOD BLESS OUR
TROOPS AND WE WILL NEVER FORGET
SEPTEMBER 11 AND THE GLOBAL WAR
ON TERRORISM.
THE SPEAKER PRO TEMPORE: FOR
WHAT PURPOSE DOES THE GENTLEMAN
MR. KLEIN: TO ADDRESS THE HOUSE
AND EXTEND MY REMARKS.
THE SPEAKER PR
WITHOUT OBJECTION. MR. KLEI MR. SPEAKER,
CREATING JOBS IN SOUTH FLORIDA
IS ONE OF MY TOP PRIORITIES IN THESE CHALLENGING ECONOMIC
TIMES.
WE MUST FIND WAYS TO CREATE
GOOD JOBS IN OUR COMMUNITY AND ASSURE THAT OUR SMALL
BUSINESSES ARE GROWING AND
EXPANDING IN ORDER TO PROVIDE
OPPORTUNITIES FOR WORK IN OUR
LOCAL NEIGHBORHOODS.
THERE ARE G
THAT WE CAN BUILD ON.
ONE EXAMPLE IS T.B.C.
MY DISTRICT.
AFTER WORKING CLOSELY WITH THE
BUSINESS DEVELOPMENT BOARD OF
PALM BEACH COUNTY, T.B.C., A
LEADING NATIONAL SUPPLIER AND
RETAILER OF AUTO TIRES, WILL
EXPAND THEIR HEADQUARTERS AND
DATA CENTER TO CREATE 50 NEW
HIGH-QUALITY JOBS IN OUR
COMMUNITY.
CONGRATULATIONS TO THE
MANAGEMENT OF T.B.C. THESE ARE THE BUSINESS MODELS
WE MUST SUPPORT AND ENCOURAGE,
AND I LO
WITH OTH
CONTINUE TO CREA SOUTH FLORIDA.
THANK YOU, MR. SPEAKER.
THE SPEAKER PRO TEMPORE: FOR
WHAT PURPOSE DOES THE GENTL
FROM VIRGINIA RISE?
CONSENT TO A
FOR ONE MINUTE.
THE SPEAKER PRO TEMPORE:
>> MR. SPEAKER, I RISE TODAY TO
RECOGNIZE THE MEN AND WOMEN
THIS GREAT NATION, MEN SUCH AS
CAPTAIN SHAWN WELSH, UNITED
STATES MARINE CORPS.
IN NOVEMBER AMERICA CELEBRATED 234 YEARS OF HAVING A UNITED
STATES MARINE CORPS THAT
DEFENDS OUR PRECIOUS FREEDOMS
AT HOME AND SERVES AS THE
WORLD'S 9/11 FORCE AROUND THE
GLOBE.
WE ARE FORTUNATE TO HAVE MEN
AND WOMEN WHO ARE WILLING TO
ANSWER THE CALL OF DUTY TIME
AND TIME AGAIN, ESPECIALLY IN
THE MIDST OF TWO YEARS. THIS YEAR I HAD THE PLEASURE OF
HAVING ONE OF THE FINEST TO
SERVE IN MY OFFICE AS A
CONGRESSIONAL MILITARY FELLOW,
CAPTAIN SHAWN WELSH.
IT'S AN HONOR TO WORK WITH HIM
WHO LIVES IN QUAN COULD HE,
VIRGINIA.
AS -- QUANTICO, VIRGINIA.
THE SOCIETY THAT SEPARATES ITS
SCHOLARS FROM ITS WARRIORS WILL
HAVE ITS THINKING DONE BY
BY FOOLS.
WE DON'T HAVE TO WORRY ABOUT
THAT DISTINCTION.
HE HAS ENTHUSIASM THAT WAS
CLEARLY APPARENT DURING HIS
YEAR ON CAPITOL HILL.
HE SERVES AS A ROLE MODEL AND
SUPERB EXAMPLE FOR SOCIETY IN
THE MARINES HE LEAD.
SO TODAY I THANK CAPTAIN SHAWN
WELSH FOR HIS LEADERSHI
SERVICE TO OUR NATION AND HIS
PERFORMANCE THIS YEAR AS A
HILL.
WITH THAT I YIELD BACK, MR.
SPEAKER.
.
THE SPEAKER PRO TEMPORE: THE
CHAIR DECLARES THE HOUSE IN THE
THE STATE OF THE UNION FOR
FURTHER CONSIDERATION OF H.R.
WILL THE GENTLEWOMAN FROM
MARYLAND KINDLY RESUME THE CHAIR.
THE CHAIR: THE HOUSE IS IN THE
COMMITTEE OF THE WHOLE ON THE
STATE OF THE UNION FOR THE
FURTHER CONSIDERATION OF H.R.
4173, WHICH THE CLERK WILL
BY TITLE.
THE CLERK: A BILL TO PROVIDE
FOR FINANCIAL REGULATORY
REFORM, TO PROTECT CONSUMERS
AND INVESTORS, TO ENHANCE
FEDERAL UNDERSTANDING OF
INSURANCE ISSUES, TO REGULATE
THE
MARKETS, AND FOR OTHER PURPOSES.
THE CHAIR: WHEN THE COMMITTEE
OF THE WHOLE ROSE ON
DECEMBER 10, 2009, AMENDMENTS
EN BLOC OFFERED BY THE
GENTLEMAN FROM MASSACHUSETTS,
MR. FRANK, HAD BEEN DISPOSED
OF.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBER 15 PRINTED IN
HOUSE REPORT 111-370.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM TENNESSEE RISE?
MR. COHEN: I RI
THE AMENDMENT BEFORE THE BODY.
THE CHAIR: THE CLERK WILL
DESIGNATE THE AMENDMENT.
THE CLERK: AMENDMENT NUMBER 15,
PRINTED IN HOUSE REPORT NUMBER
111-370, OFFERED BY MR. COHEN
OF TENNES
THE CHAIR: PURSUANT TO HOUSE
RESOLUTION 964, THE GENTLEMAN
FROM TENNESSEE, MR. COHEN, AND
A MEMBER OPPOSED, EACH WILL
CONTROL FIVE MUTES.
GENTLEMAN FROM TENNESSEE. THANK? YOU, MADAM CHAIR.
I WOULD TAKE AS MUCH TIME AS I Y CONSUME.
I WANT TO THANK CHAIRMAN FRANK
FOR WORKING WITH ME TO INCLUDE
THIS LANGUAGE IN THE WALL
STREET REFORM AND CON
PROTECTION ACT OF 2009.
THIS AMENDMENT WOULD STRIP A
PROVISION PERMITTING THE
SECURITIES AND EXCHANGE
COMMISSION TO DELEGATE
REGULATION OF INVESTMENT
ADVISORS TO THE FINANCIAL
INDUSTRY REGULATORY AUTHORITY.
IN ITS PRESENT FORM, THE BILL
WOULD GIVE THEM SWEEPING RULE
MAKING AUTHORITY OVER INVEMENT ADVISORS WHICH HAS
BEEN UNDER THE SOLE DOMAIN OF
THE GOVERNMENT REGULATORY AGENCIES.
THIS FAR-REACHING PROVISION
WOULD EXTEND JURISDICTION TO
FEDERALLY REGISTERED INVESTMENT
ADVISORY FIRMS THAT MANAGE
ALMOST 80% OF ALL ADVISORY
FIRMS AASSETS UNDER MANAGEMENT.
FENERTY DOES NOT HAVE THE
EXPERTISE TO -- WITH THE
INVESTMENT ADVISORS ACT
ANTI-S.E.C. IS BEST POSITION TO
OVERSEE THE INVESTMENT ADVISORS ACT.
THERE IS INHERENT CONFLICT OF
INTEREST IN HAVING A SELF-REGULATORY GROUP
ORGANIZATION THAT FUNDS THIS
AGENCY AND HAS ALWAYS BEEN ON
THE DE OF BROKER-DEALERS.
WE CANNOT
KEY REGULATING FUNCTIONS SOLELY
IN THE BEST INTEREST OF THEIR CLIENTS.
IN HIS SPEECH EARLIER THIS
YEAR, THE S.E.C. COMMISSIONER
NOTICED HIS OPPOSITI TO
ESTABLISHING A SELF-REGULATORY
ORGANIZATION FOR INVESTMENT
ADVISORS BECAUSE THE S.E.C.
SHOULD NOT OUTSOURCE ITS
MISSION AND BECAUSE THE S.E.C.
IS THE ONLY SECURITIES
REGULATOR WITH THE NECESSARY
EXPERIENCE IN DEALING WITH THE
PRINCIPA
I AM CONCERNED THAT THE HIGH
LEVEL OF INVESTOR PROTECTION
PROVIDED UNDER THE VIDSOR ACT
WILL BE DEAN MISHED IF THEY AUTHORITY.
WE SHOULD NOT EXTEND THE
AUTHORITY TO THE ADVISORY PROFESSION.
AGAIN I URGE PASSAGE OF THIS AMENDMENT WHICH WOULD KEEP THE
S.E.C. AS THE PROPER
INDEPENDENREGULATOR OF
INVESTMENT
I RESERVE THE BALANCE OF MY
TIME.
THE CHAIR: THE GENTLEMAN
RESERVES. FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM ALABAMA SEEK RECOGNITION?
MR. BACHUS: TO CLAIM THE TE
IN OPPOSITION.
THE CHAIR: WITHOUT OBJECTION,
THE GENTLEMAN IS RECOGNIZED FOR FIVE MINUTES.
MR. BACHUS: THANK YOU.
LET ME SAY TO THE G
FROM TENNESSEE, LET ME EXPLAIN
THE PURPOSE BEHIND THE
PROVISION WHICH YOUR AMENDMENT
SEEKS TO STRIKE.
AND I SAY THAT -- I WOULD BE
GLAD TO WORK WITH THE CHAIRMAN
AND WITH
TIME STRIKING THE PROVISION
THAT I INSERTED IN
COMMITTEE THAT YOU OBJECT TO.
VOTE.
-- WE'LL ASK FOR A RECORDED
VOTE.
LET ME EXPLAIN THE BACKGROUND
BEHIND THIS AMENDMENT.
I THINK WE -- IF WE CA ALL
WORK TOGETHER WE CAN
WE CAN
AND MAKE A BETTER SYSTEM.
THE BODY WILL RALL AND THE
CHAIRMAN ON DECEMBER 12 OF LAST
YEAR, ABOUT A YEAR AGO, BERNIE
MADOFF WAS ARRESTED FOR
COMMITTING THE LARGEST
FINANCIAL FRAUD IN THE HISTORY
TREMENDOUS SCAM.
$65 MILLION PONZI SCHEME WHICH
DEFRAUDED YOU NONPROFITS,
UNIVERSITIES, PEN
AND WIPED OUT THE SAVINGS OF
LITERALLY TENS OF THOUSANDS OF
FAMILIES AND CITIZENS.
NOW, TO DO THIS BERNIE MADOFF
OPERATED TWO SEPARATE ENTITIES.
ONE WAS A BROKER-DEALER, AND
ONE WAS AN INVESTMENT ADVISOR
THE FRAUD OCCURRED IN THE
INVESTOR ADVISOR.
THAT'S WHERE THE OCCURRED.
THE INVESTMENT VISOR WAS
REGISTERED WITH THE S.E.C.
THE S.E.C., THE INVESTMENT
ADVISOR, MADOFF'S INVESTMENT
ADVISOR, WAS SUBJECT TO
EXAMINATION BY THE S.E.C..
BUT I WOULD POINT OUT THE
CHAIRMAN OF THE FULL COMMITTEE
AND THE GENTLEMAN FROM
TENNESSEE, THEY NEVER EXAMINED
THE INVESTOR ADVISOR.
THEY NEVER EXAMINED IT.
MADOFF OPERATED A BROKER DEALER
IN THE SAME PREMISE -- PREMISES
AND UNDER THE SAME NAME.
AND IT WAS EXAMINED, SUBJECT BY
EXAMINATION BY THE S.E.C. AND
BY FENRA WHO I WAS SAYING LET
FENRA GO AHEAD AND EXAMINE THE
INVESTMENT ADVISORS.
THESE DUAL
HAVE BOTH.
FENRA, THE BROKER DEALER, AT
LEAST EVERY OTHER YEAR, THEY INSPECTED THEM.
BUT THE FRAUD DIDN'T OCCUR
THERE.
IT OCCURRED IN THE INVESTMENT
ADVISOR.
FENRA LACKED THE AUTHORITY TO
GO IN AND EXAMINE THE INVESTOR
ADVISOR.
THEY COULDN'T EXAMINE IT.
AND MY AMENDMENT WAS --
PROVISION I PUT IN THE
COMMITTEE SAID, LET THEM BE
ABLE TO, AS THEY EXAMINE THE
BROKER DEARLY, LET THEM GO IN
AND LOOK AT THE BOOKS OF THE
INVESTMENT ADVISOR IF YOU ARE
OPERATING A DUALP OPERATION.
-- DUA
HAD THEY HAD THE RIGHT, THEY
WOULD HAVEONE IN AND THEY
WOULD HAVE DISCOVERED THIS
FRAUD.
E S.E.C. WHICH HAD THE RIGHT
NEVER DID IT.
NOW, AS I SAID EARLIER, MAYBE
THERE'S ANOTHER SOLUTION.
THE
DON'T WANT FENRA TAKING OVER
R JURI
WHAT I'D LIKE TO SAY IS MAKE
SURE THE S.E.C. STARTS DOING
THEIR JOB.
LET'S MAKE SURE THAT THEY START
EXAMING THESE INVESTMENT
ADVISORS.
SOMEONE NEEDS TO.
THE AVERAGE INVESTMENT ADVISOR
IS ONLY EXAMINED YEARS.
BERNIE MADOFF'S INVESTMENT
ADVISOR WAS NEVER EXAMINED.
IT'S THE KIND OF GAP IN
REGULATION THAT CAUSES
DISASTERS.
IT CAUSES SCAMS.
IT CAUSES BERNIE MADOFFS OF THE
WORLD TO GET ALONG FOR DECADES.
THAT'S WHY I INTRODUCED THIS
AMENDMENT.
I MEAN THE PROVISION, WHICH WE
ARE NOW STRIKING.
NOW, GOING FORWARD WE AT LEAST
NEED TO LOOK AT THIS.
WE NEED TO KNOW THAT THERE ARE
500 OR 600 OF THESE INVESTMENT
ADVISORS AND BROKER DEALERS,
DUAL OPERATIONS.
WE NEED TO MAKE CLEARHAT THE
S.E.C. -- SOMEWHERE
HAVE THE AUTHORITY TO EXAMINE
BOTH
BROKER DEALERS.
IF THEY WANT TO PERFORM THAT
MISSION.
AND I KNOW ONE THING THE
CHAIRMAN HAS DONE, HE'S ADDED
MORE MONEY FOR THE S.E.C.
AND I THINK THAT'S PART OF THE ANSWER.
BUT I THINK THIS COMMITTEE,
THIS CONGRESS AS WE GO FORWARD
NEEDS TO MAKE SURE THEY DO
THEIR JOB.
THERE WAS A MONUMENTAL FAILURE OF THE S.E.C.
IF THEY DON'T DO THEIR JOB, OR
WE FIND THEY DON'T, AND THEY
HAVE THE RESOURCES --
THE CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED.
MR. BACHUS
SOMEONE ELSE.
E CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED.
THE GENT RECOGNIZED.
MR. COHEN: THANK YOU, MADAM SPEAKER.
I WANT TO THANK THE GENTLEMAN
FOR HIS WORKING WITH US ON THE
AMENDMENT.
I'D LIKE TO YIELD AS M
AS HE NEEDS TO THE CHAIRMAN OF
THE FULL COMMITTEE, MR. FRANK.
THE CHAIR: THE GENTLEMAN FROM
MASSACHUSETTS IS RECOGNIZED.
MR. FRANK: I THANK BOTH MY
COLLEAGUES.
THE RANKING MEMBER IS EXACTLY
RIGHT IN THE CONCERNS HE'S EXPRESSED.
THAT WHY AT
CHAIRMAN OF THE SUBCOMMITTEE,
MR. KANJORSKI, AND I TENTATIVE
TY AGREED TO THIS.
WE LATER HEARD SOME QUESTIONS
RAISED IN PARTICULAR, SOME I
THINK WHOM WE HAVE AN AMOUNT OF
RESPECT, THE LONG TIME TEXAS
SECURITIES ADMINISTRATOR, WHO
REALLY GOES BACK FOUR, FIVE
TEXANS ADMINISTRATIONS IN A BIPARTISAN WAY.
AMERICAN SECURITIES
ADMINISTRATION ASSOCIATION, SHE
RAISED CONCERNS.
THEY WERE WORRIED THAT THIS
MIGHT AT SOME POINT BE TOO MUCH
OF A DELEGATION AND THEREFORE,
I APPRECIATE THE GENTLEMAN'S
COMMENTS, WE AGREE WITH ME WE
DO -- ALWAYS TO BUFF UP
INVESTOR PROTECTION.
CLEARLY THERE IS A ROLE FOR
FENRA.
I THINK WE MAY HAVE GONE A BILL
TOO FAR IN WHAT WE ACCEPTED IN THE COMMITTEE.
WE ARE NOT TALKING ABOUT
GETTING RID OF IT ALTOGETHER.
I APPRECIATE THE REASONABLENESS
OF WHAT THE GENTLEMAN FROM ALABAMA HAS SAID.
IT WILL BE OUR ROLE NEXT YEAR
IF TS BILL PASSES TO MONITOR
THE S.E.C.
I LOOK FORWARD TO OVERSIGHT
HEARINGS TO MAKE SURE THEY ARE
USING THEIR AUTHORITY. AND PARTICULARLY THE QUESTION
OF HOW BEST TO ALLOW THE S.E.C.
TO DRAW ON THE RESOURCES OF
FENRA BE WILL BE ON -- HIGH ON
OUR AGENDA.
I YIELD TO THE GENTLEMAN.
MR. BACHUS: IF THE GENTLEMAN
WOULD YIELD.
I APPRECIATE THAT.
LOGICAL
SOLUTION TO THIS.
AT THIS TIME I LL SUPPORT THE
GENTLEMAN'S AMENDMENT TO
THE PROVISION.
AS I SAID WHEN I BROUGHT THIS
PROVISION UP, I WANTED TO
HIGHLIGHT THE FACT THAT THIS IS
HOW BERNIE MADOFF -- HE GOT
AWAY WITH OPERATING THESE TWO
OPERATIONS IN THE SAME PREMISES .
AND WE NEED TO DO -- THE
REGULATORS NEED TO DO
JOB.
SOMEONE OF BEING ABLE TO LOOK
ACROSS THOSE OPERATIONS.
THE CHAIR: THE GENTLEMAN FROM
TENNESSEE IS RECOGNIZED. MR. COHEN: THANK YOU.
I WOULD LIKE TO THANK AGAIN THE
GENTLEMAN FROM ALABAMA.
I KNOW IT'S DIFFICULT FOR HIM
TO WORK WITH US ON THIS BECAUSE
HE IS THE CHAMPION OF THE
S.E.C.
THE CRIMSON TIDE OF ALABAMA.
WITH THAT I WOULD LE TO URGE
THE PASSAGE OF THE AMENDMENT.
I YIELD BACK THE BALANCE OF MY TIME.
THE CHAIR: THE GENTLEMAN
YIELDS. THE QUESTION IS ON THE
AMENDMENT OFFERED BY THE
GENTLEMAN FROM TENNESSEE.
SO MANY AS ARE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR,
THE AYES HAVE IT. AGREED TO.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBER 16 PRINTED IN
HOUSE REPORT 111-3
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM MICHIGAN RISE?
MR. PETER: I HAVE AN AMENDMENT AT THE DESK.
THE CHAIR: THE CLERK WILL
DESIGNATE THE AMENDMENT.
THE CLERK: AMENDMENT NUMBER 16,
PRINTED IN HOUSE REPORT NUMBER
111-
OF MICHIGAN.
THE CHAIR:
RESOLUTION 964, THE GENTLEMAN
FROM MICHIGAN, MR. PETERS, AND
CONTROL FIVE MINUTES.
THE CHAIR RECOGNIZES THE GENTLEMAN FROM MICHIGAN.
CHAIR.
I YIELD MYSELF SUCH TIME AS I
MAY CONSUME. THE CHAIR: WITHOUT OBJECTION.
MR. PETERS: TODAY WE ARE
DEBATING LEGISLATION THAT WILL
END THE TOO BIG TO FAIL
DOCTRINE AND PROVIDE A
MECHANISM FOR ENSURING THAT IN
THE FUTURE TAXPAYERS WILL NOT
BE ASKED TO FOOT THE BILL TO
CLEAN UP WALL STREET MISTAKES.
MY AMENDMENT IMPROVES THIS
LEGISLATION BY ENSURING THAT
TAXPAYERS ARE NOT ASKED TO FOOT
MISTAKES AS WELL.
MY AMENDMENT WILL FIRMLY
ESTABLISH THAT THE FINANCIAL
INDUSTRY NOT
RESPONSIBLE FOR MAKING UP ANY
AND THE TARP PROGRAM WILL NOT
ADD TO OUR DEFICITS OR NATIONAL
DEBT.
SECTION 134 OF THE EMERGENCY
ECONOMIC STABILIZATION ACT OF
2008 REQUIRES THE PRESIDENT TO
IDENTIFY A MECHANISM FOR
RECOVERING ANY SHORTFALLS IN
TARP FUNDS AFTER FIVE YEARS SO
AS NOT TO INCREASE THE BUDGET
DEFICIT OR NATIONAL DEBT.
HOWEVER THE MECHANISM FOR
RECOUPING ANY SHORTFALL IS NOT
IDENTIFIED.
H.R. 4173 ALREADY EMPOWERS THE
FDIC TO MAKE RISK-BASED
ASSESSMENTS ON THE NATION'S
LARGEST AND MOST SYSTEMICALLY
RISKY FINANCIAL INSTITUTIONS
THAT WILL BE USED TO CREATE A
SYSTEMIC DISSOLUTION FUND USED
TO SEIZE AND
NONBANK FINANCIAL INSTITUTION
IN THE FUTURE.
ENSURING THE WILL BE NO MORE
AD HOC BAILOUTS OF TOO BIG TO
FAIL INSTITUTIONS.
MY AMENDMENT WOULD GIVE THE
FDIC AUTHORITY TO MAKE
ADDITIONAL ASSESSMENTS TO THESE
SAME LARGE FIRMS WHOSE
EXCESSIVE RISK TAKING CAUSED
THE CURRENT FINANCIAL CRISIS
AND USE THOSE ASSESSMENTS TO
PAY OFF ANY TARP SHORTFALLS AND
ENSURE THAT THE TAXPAYERS ARE
MADE WHOLE.
MY AMENDME GIVES THE AMERICAN
TAXPAYER CERTAINTY THAT ALL
TARP FUNDS
FROM THE LARGE FINANCIAL
COMPANIES THAT CAUSED THIS
FINANCIAL CRISIS.
IT WOULD ALLOW CONGRESS TO SHOW
THAT WE HAVE THE -- A PLAN IN
PLACE FOR THE RECOOPERATE OF
ANY SHORTFALL CONSISTENT WITH
THE PROMISES MADE DURING THE
DEBATE OVER THE EMERGENCY
ECONOMIC STABILIZATION ACT.
IT WILL ALSO ENSURE THAT THE
AMERICAN PUBLIC UNDERSTANDS
THAT WE ARE NOT TURNING THE
PAGE ON TARP, BUT INSTEAD THAT
WE HAVE A CLEAR AND DECISIVE
PLANNER FOR MAKING SURE THAT
TAXPAYERS ARE
I RESERVE THE BALANCE OF MY
TIME.
.
THE CHAIR: THE GENTLEMAN
RESERVES.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM TEXAS RISE?
HELKSHELKS TO CLAIM TIME IN
OPPOSITION.
THE CHAIR: WITHOUT OBJECTION,
THE GENTLEMAN IS RECOGNIZED FOR
FIVE MINUTES.
MR. HENSARLING: IF THIS BODY
REALLY CARES ABOUT PROTECTING
THE TAXPAYER AGAINST LOSSES IN
TARP, THEY WILL HAVE AN
OPPORTUNITY TO SHOW IT LATER
TODAY. AND THAT IS VOTE TO END THE
TARP PROGRAM.
NOW, WE CAN HAVE A DEBATE ABOUT
WHAT TARP WAS, BUT THE MORE
RELEVANT DEBATE IS WHAT TARP
IS.
AND TODAY TARP IS NOTHING MORE
THAN $700 BILLION OF WALKING AROUND MONEY FOR THE
ADMINISTRATION.
IT'S A $700 BILLION REVOLVING
BAILOUT FUND TO ADVANCE THE
ADMINISTRATION'S POLITICAL,
SOCIAL AND ECONOMIC AGENDA.
AND IF YOU'RE CONCERN
PROTECTING THE TAXPAYER, WHY,
WHY WOULD YOU HAVE A PROVISION
THAT RAISES TARP FOR YET MORE
TAXPAYER FUNDED FORECLOSURE
MITIGATION PROGRAMS WHICH HAVE
BEEN PROVEN TO BE ABJECT
FAILURES.
-- FAILURES?
SO IF YOU ARE REALLY SERIOUS
ABOUT PROTECTING TAXPAYERS, PUT
YOUR VOTE WHERE YOUR SENTIMENT
IS AND VOTE LATER TODAY TO
SIMPLY END THE TARP PROGRAM IN
THE BAILOUTS.
BUT GIVEN THAT THE WHOLE REASON
OR BEING FOR THIS BILL IS A
PERPETUAL WALL STREET BAILOUT,
I'D SUSPECT, UNFORTUNATELY,
THAT WILL NOT OCCUR.
THE SECOND OINT I'D MAKE,
MADAM CHAIR, IS SOME OF THE
COMPANIES THAT RECEIVE FUNDS
UNDER THE CAPITAL PURCHASE
PROGRAM HAVE NOW REPAID THEM
BACK WITH INTEREST.
COMPANIES THAT ARE PROVEN
SUCCESSFUL AND PAID BACK THEIR
FUNDS, TAX THEM FOR FAILING
COMPANIES THAT DIDN'T PAY BACK
THEIRS.
YOU KNOW,
RECEIVED FUNDS UNDER TARP AND
FORD DIDN'T.
SO UNDER THIS I SUPPOSE THAT WE
CAN ASSESS FORD A TAX TO PAY
FOR LOSSES THE TAXPAYERS WILL
INCUR ON G.M. AND CHRYSLER.
AND WE KNOW THAT G.M. AND
CH QUOTE-UNQUOTE FINANCIAL
INSTITUTIONS UNDER THE TARP
STATUTE SO THEREFORE, FORD CAN
BE TAXED UNDER THE GENTLEMAN'S
IS THAT SMART?
IS THAT FAIR?
THE ANSWER IS NO.
THIS IS YET ANOTHER TAX TO GO
ON CAPITAL.
YOU CAN'T HAVE CAPITALISM
WITHOUT CAPITAL.
AND SO WE HAVE $150 BILLION TAX
FOR THE REVOLVING BAILOUT FUND.
WE HAVE AN UNLIMITED TAX BY THE
NEW CZAR TO BAN AND RATION
CONSUMER CREDIT PRO
CAN TOUCH SMALL BUSINESSES
THROUGHOUT OUR NATION.
EVERY TIME YOU INCREASE THE
COST OF TAXES ON CAPITAL, YOU
GET LESS LENDING, YOU GETESS
CREDIT, MOR
AND LESS CREDIT IS FEWER JOBS.
I WOULD THINK, I WOULD THINK AT
A TIME WHEN OUR
HIGHEST UNEMPLOYMENT RATE IN A
GENERATION THAT THIS IS AN
INSTITUTION THAT WOULD BE TRYING TO CREATE MORE JOBS,
TRYING TO CREATE MORE CAPITAL,
TRYING TO HAVE SMALL BUSINESSES
ACCESS POOLS OF CAPITAL, AND
ALL WE DO IS SEE MORE
LEGISLATION AND MORE AMENDMENTS
TO MAKE CAPITAL LESS AVAILABLE
BUSINESSES.
THIS -- EXPSIVE TO OUR SMALL
BUSINESSES.
THIS AMENDMENT MUST BE
REJECTED.
I RESERVE THE BALANCE OF MY
TIME.
THE CHAIR: THE GENTLEMAN
RESERVES.
RECOGNIZED.
MR. PETERS: THANK YOU, MADAM
SPEAKER.
I'D LIKE YIELD A MINUTE 30
TO THE GENTLEMAN FROM MICHIGAN,
MR. SHOUR.
-- MR. SH THE CHAIR: THE GENTLEMAN IS
RECOGNIZED.
>> WE WERE TOLD WHAT'S GOOD FOR
WALL STREET IS GOOD FOR MAIN
STREET.
THE BENEFITS ARE SUPPOSED TO
TRICKLE DOWN.
THE ONLY PEOPLE THE GENTLEMAN
FROM MICHIGAN HAS SEEN IS IT
TRICKLE OUT OF REACH.
IT HAS LEFT MY STATE WITH A 15%
UNEMPLOYMENT RATE.
LAST FALL WALL STREET SAID THEY
NEED TO BORROW $700 BILLION
ROM TAXPAYERS TO PAY FOR OVER
THEIR LOSSES.
MICHIGANERS WERE SUPPORTSED TO
OPEN UP THEIR WALLETS TO WALL
STREET BANKS.
THEY HAVE STOPPED LENDING TO MICHIGAN HOMEOWNERS AND
MICHIGAN BUSINESSES.
EMPLOYERS CAN'T GET LOANS THEY
NEED TO BRING EMPLOYEES BACK TO
WORK.
TARP HAS PERFORMED BETTER THAN
EXPECTED BUT THEY STILL EXPECT
TO LOSE TAXPAYER DOLLARS.
WE STILL DO NOT HAVE A
GUARANTEE THAT THE BAILED OUT
FINANCIAL INDUSTRY WILL
ACTUALLY REPAY TAXPAYERS FOR
MR. PETERS HAS OFFERED AN
EXCELLENT AMENDMENT TO ENSURE
AMERICAN TAXPAYERS WILL GET
THEIR MONEY BACK AND THAT THOSE
THAT CREATED THIS MESS WILL
PICK UP THE TAB.
THIS AMENDME
TO MAKE ADDITIONAL ASSESSMENTS
ON THE NATION'S LARGEST, MOST
SYSTEMICALLY RISKY FINANCIAL
INSTITUTIONS TO PAY BACK THIS
TARP MONEY.
THIS AMENDMENT FINALLY PUTS IN
PLACE A PLAN FOR WALL STREET TO
PAY BACK ITS LOAN.
THIS IS COMMON SENS
THOSE INSTITUTIONS RESPONSIBLE
FOR THE COLLAPSE SHOULD AT
LEAS
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
MR. SCHAUER: I YIELD BACK.
THE CHAIR: FOR WHAT PURPOSE
DOES -- THE GE TEXAS IS RECOGNIZED.
MR. HENSARLING: I SERVE. THE CHAIR: THE GENTLEMAN
RESERVES.
THE GENTLEMAN FROM MICHIGAN IS
RECOGNIZED.
MR. PETERS: MADAM SPEAKER, I'D
LIKE T
SECONDS TO THE GENTLEMAN FROM VIRGINIA, MR. CONNELLY.
THE CHAIR: THE GENTLEMAN HAS
ONE MINUTE REMAING.
MR. CONNELLY: THANK YOU, MADAM
CHAIR.
THE CHAIR: THE GENTLEMAN FROM
VIRGINIA IS RECOGNIZED FOR ONE
MINUTE.
MR. CONNELLY: THE HOUSE W ENACT THE MOST SIGNIFICANT
REFORM OF OUR FINANCIAL SYSTEM
SINCE THE GREAT DEPRESSION.
THESE ARE NOT DECISIONS WE TAKE
LIGHTLY BUT THE PROLONGED
RECESSION AND THE NEAR COLLAPSE
OF THE FINANCIAL MARKET IN THE
FALL OF 2008 HAVE COMPELLED US
TO RESPON
IT WILL ALSO END THE ERA OF
TAXPAYER NDED BAILOUTS.
MADAM CHAIR WOMAN, THIS
AMENDMENT OFFERED BY MY FRIEND
AND COLLEAGUE,
MICHIGAN, SEEKS TO BUILD ON THIS LEGISLATION AND WILL
AUTHORIZE THE FDIC TO MAKE
FURTHER ASSESSMENTS IN THE
FINANCIAL INDUSTRY TO ENSURE
EVERY PENNY OF THE TARP LOANS
MADE TO THE BANKS IS REPAID AND
HELP REDUCE OUR NATION'S DEBT
AND BURDEN ON THE TAXPAYERS.
I URGE ADOPTION OF THE
AMENDMENT, MADAM CHAIR WOMAN,
AND I YIELD BACK. THE CHAIR: THE GENTLEMAN
YIELDS.
THE GENTLEMAN FROM TEXAS IS
RECOGNIZED.
MR. HENSARLING: THE GENTLEM
RESERVES. THE CHAIR: THE GENTLEMAN
RESERVES.
THE GENTLEMAN FROM MICHIGAN HAS
30 SECONDS REMAINING.
MR. PETERS: THANK YOU, MADAM
CHAIR.
THE ANDMENT BEFORE US IS A
MMONSENSE ATTEMPT TO MAKE
SURE WE COUP TO THE TAXPAYERS
THE MONEY THAT HAS BEEN LONDON
TO THE FINANCIAL INDUSTRY. THE GENTLEMAN FROM TEXAS
MENTIONS THAT WE SHOULD JUST
END TARP, BUT THAT DOESN'T
RELIEVE US OF THE FACT THAT WE
GOT $140 BILLION THAT NEEDS TO
BE PAID BACK.
AND SO IT'S NOT A LIABILITY ON
THE TAXPAYERS.
THIS IS A WAY IN WHICH WE CAN
RECOUP THE MONEY FROM THE FINANCIAL INSTITUTIONS, THE
VERY INSTITUTIONS THAT WERE
RESPONSIBLE FOBRINGING THIS FINANCIAL MELTDOWN TO OUR
COUNTRY AND THE PROBLEM
HAVE IMPACTED MY STATE AND
STATES ALL ACROSS THIS COUNTRY.
THIS IS A COMMONSENSE APPROACH,
AND I URGE ADOPTION.
THE CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED.
THE GENTLEMAN FROM TEXAS IS
RECOGNIZED.
MR. HENSARLING: MADAM CHAIR,
WHAT IS COMMON SENSE IS TO
TERMINATE TARP, STOP IT BEFORE
IT CAN SPEND AGAIN.
AND I HEAR ALL THIS WONDERFUL
RHETORIC ABOUT, WELL, SOMEHOW
WE'RE GOING TO TAX WALL STREET
FOR ALL OF THIS.
BUT LOOK AT THE TARP PROGRAM.
LOOK AT THE TAXPAYER-FUNDED
RECLOSURE MITIGATION PROGRAM,
ALL OF WHICH HAVE BEEN
FAILURES WHICH THE TAXPAYER
RECEIVES ZERO, ZERO OF HIS
MONEY BACK.
AND SO THIS AGAIN IS JUST ONE
MORE WAY TO ASSESS A GREATER
TAX, A GREATER COST ON CAPITAL.
WHEN SMALL BUSINESSES HAVE SEEN
THEIR CREDIT LINES SHRUNK,
WITHDRAWN.
JOBS ARE BEING LOST ALL OVER
THE NATION.
AND SO HERE'S ONE MORE IDEA TO
FRANKLY KEEP TARP GOING AND
AGAIN IF PEOPLE WANT TO PUT
THEIR SENTIMENT -- PUT THEIR
VOTE WHERE THEIR SENTIMENT IS,
THEY'LL HAVE AN OPPORTUNITY TO
DO IT LATER TODAY. AND IT'S A FUNDAMENTAL
DIFFERENCE BETWEEN THE TWO
APPROACHES.
AND THAT IS OUR FRIENDS ON THE
OTHER SIDE OF THE AISLE STILL
WANT A PERPETUAL BAILOUT.
AS I'VE SAID EARLIER, IF THERE
WAS TRUTH IN ADVERTISIN
BILL BEFORE US WOULD BE NAMED
THE PERMANENT WALL STREET
BAILOUT AND INCREASE JOB LOSSES
THROUGH CREDIT RATIONING ACT OF
2009.
THE BEST WAY TO PROTECT THE
TAXPAYER IS TO END TARP, STOP
THE GRAB FOR OTHER PROGRAMS,
NOT TO INCREASE TAXES YET AGAIN
ON CAPITAL THAT IS VITALLY
NEED FOR OUR SMALL BUSINESSES
--
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
MR. HENSARLING: I YIELD BACK.
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED. ALL TIME HAVING EXPIRED, THE
QUESTION IS ON THE AMENDMENT
OFFERED BY THE GENTLEMAN FROM
MICHIGAN. THOSE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR,
THE AYES HAVE IT.
MR. HENSARLING: MADAM CHAIR.
ON THAT I --
THE CHAIR: FOR WHAT PURPOSE DOES THE GENTLEMAN SEEK
RECOGNITION?
MR. HENSARLING: I ASK FOR THE
YEAS AND NAYS. THE CHAIR: DOES THE GENTLEMAN
ASK FOR A RECORDED VOTE?
MR. HENSARLING: I REQUEST A
RECORDED VOTE.
THE CHAIR: PURSUANT TO CLAUSE 6
OF RULE 18, FURTHER PROCEEDINGS
ON THE AMENDMENT OFFERED BY THE
GENTLEMAN FROM MICHIGAN WILL BE
POSTPONED.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT
HO
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM NORTH CAROLINA
MR. WATT: TO CLAIM THE TIME IN
THE CHAIR: DOES THE GENTLEMAN
OFFER THE AMENDMENT? MR. WATT: I OFFER THE
AMENDMENT.
T
THE CLERK: AMENDMENT NUMBER 17
PRINTED IN HOUSE REPORT 111-370
OFFERED BY MR. WATT OF NORTH
CAROLINA.
TH
RESOLUTION 964, THE GELEMAN
FROM NORTH CAROLINA, MR. WATT,
AND A MEMBER OPPOSED, EACH WILL
CONTROL FIVE MINUTES.
THE CHAIR RECOGNIZES THE
GENTLEMAN FROM NORTH CAROLINA.
MR. WATT: THANK YOU, MADAM
CHAIR.
I YIELD MYSELF 3 1/2 MINUTES.
THE CHAIR: THE GENTLEMAN IS
RECOGNIZED.
MR. WATT: MADAM CHAIR, LET ME
SAY AT THE OUTSET THAT IS MY
INTENTION THAT THE END OF THE
SHORT DISCUSSION AND I ASK
UNANIM
THE AMENDMENT, BUT I THOUGHT IT
WOULD BE ENLIGHTENING TO
COLLEAGUES AND TO WHOEVER ELSE
MIGHT BE LISTENING AT THIS TIME
IN THE MORNING TO TALK ABOUT
SOME OF THE PRACTICAL PROBLEMS
THAT YOU HAVE EVEN WHEN
BROAD AGREEMENT ON AN ISSUE.
AND I'LL DESCRIBE THE PROCESS
BOTH MR. CAMPBELL, WHO IS A
MEMBER OF THE COMMITTEE, AND I
AGREEHAT AUTOMOBILE DEALERS
OUGHT TO BE EXEMPT IN THEIR
PRIMARY DUTIES FROM THE CFPA,
THE CONSUMER FINANCIAL
PROTECTION AGENCY SUPERVISION
AND WHAT HAVE YOU.
AND THERE WAS BROAD BIPARTISAN
AND PHILOSOPHICAL AGREEMENT ON
THAT GENERAL PROPOSITION IN THE
COMMITTEE WHEN MR. CAMPBELL
OFFERED HIS AMENDMENT.
AND THERE WAS BROAD AGREEMEN
THAT THERE WAS SOME PRACTICAL
PROBLEMS WITH THE WAY THE
AMENDMENT WAS WRITTEN.
AND THE CHAIR
ME AND TO MR. CAMPBELL THE
RESPONSIBILITY TO TRY TO FIND
THE RIGHT LANGUAGE.
AND WE SET ABOUT TRYING TO DO
THAT.
AND WE HAVE BEEN DILIGENTLY
TRYING TO DO THAT.
THEN, THE PRACTICAL PROBLEMS
HER PEOPLE GET THEIR FINGERS
IN T POT AND SUGGEST
DIFFERENT I
BE RESOLVED.
MR. CAMPBELL AND I ON A
NIGHT WITH HIM IN CALIFORNIA
AND ME IN NORTH CAROLINA ON OUR
CELL PHONES HAVING CONVERSATION
AND WE ARE RIGHT AT THE VERGE
OF REACHING AN AGREEMENT, WE
THINK, AND WE'RE QUIBBLING
ABOUT WORDS.
AND THEN HE GETS CALLED AWAY TO
THE U.S.C. FOOTBALL GAME THE
NEXT DAY AND I GET CALLED THE
FOLLOWING DAY TO THE CAROLINA
PANTHER FOOTBALL GAME.
AND THEN WE'RE RIGHT UP AGAINST
A DEADLINE AND THEN WE FIND OUT
THAT THE CHAIRMAN HAS OFFERED A
MANAGER'S AMENDMENT THAT TEELS
WITH PART OF THE PROBLEM --
DEALS WITH PART OF THE PROBLEM
AND NOT ALL OF IT AND WE BOTH
SUBMITTED AMENDMENTS TO THE
RULES COMMITTEE. MR. CAMPBELL WITHDRAWS MY
AMENDMENT.
MINE IS STILL STANDING, AND
WE'RE STILL TALKING ABOUT THE
AMENDMENT.
AND THEN THE AUTOBILE
DEALERS, BECAUSE THEY DON'T
LIKE MY AMENDMENT, DECIDE THAT
THEY NEED TO LOBBY AGAINST IT
AND MAKE IT SOUND LIKE I'M
OPPOSED TO WHAT I WAS IN FAVOR
OF ALL ALONG.
SO WE'VE BEEN ATHIS FOR A
LONG TIME.
CAMPBELL AND I SAT DOWN AND
TALKED AGAIN AND DECIDED THAT
WE SHOULD NOT ALLOW THE PERFECT
TO BE THE ENEMY OF THE GOOD.
WHAT WE HAVE IN THE BILL WITH
THE MANAGER'S AMENDMENT
SUBSTANTIALLY ADVANCES THE
PROCESS.
WE ARE NOT THE ENOF THE
PROCESS ANYWAY.
THE SENATE IS GOING TO HAVE TO
DEAL WITH THIS.
AND BOTH OF US ARE STILL INTENT
ON THE PHILOSOPHY
AUTOMOBILE DEALERS OUGHT TO BE EXEMPT FROM CFPA.
WE AGREE ON THAT.
AND SO HERE WE ARE AND WE
THOUGHT IT WOULD BE HELPFUL TO
HAVE THIS DIALOGUE AND WITH
THAT I'LL RESERVE THE BALANCE
OF MY TIME.
.
THE CHAIR: THE GENTLEMAN IS RECOGNIZEDOR FIVE MINUTES.
MR. CAMPBELL: THANK YOU VERY MUCH.
I YIELD MYSELF SUCH TIME AS I
MAY CONSUME.
MAYBE I SHOULDN'T HAVE GONE TO
THAT FOOTBALL GAME BECAUSE THEY
LOST.
SO THAT WAS RATHER DEPRESSING.
I DON'T KNOW HOW THE CAROLINA
PANTHERS
THEY LOST, TOO.
ALL RIGHT.
BOTH OF US DIDN'T HAVE A
PARTIC
AS THE GENTLEMAN FROM NORTH
CAROLINA, MR. WATT, DESCRIBED
WE HAVE HAD DISCUSSIONS ON THIS
THING, BUT I -- HE HAS B
VERY
CONSTRUCTIVELY ON THIS.
IN FACT THE AMENDMENT THAT
THE LANGUAGE THAT IS IN THE
BILL NOW REFLECTS A NUMBER OF
DISCUSSIONS THAT THE GENTLEMAN
FROM NORTH CAROLINA MADE WHICH
CLARIFIED SOME THINGS THAT
WERE, FRANKLY, CONFUSING AND
CONFLICTING IN THEILL.
I APPRECIATE MR. WATT'S
CONSTRUCTIVE WORK ON THIS AND
ALL THAT HE HAS DONE WITH THIS.
YES, HE'S RIGHT.
SOMETIMES THESE THINGS GET VERY
COMPLICATED AND YOU SIT DOWN
AND TRY TO FIGURE OUT WHAT EXBE
ACTLY DOES THIS SAY?
I THINK WE
AGREEMENT THAT WHAT IS IN THE
BILL IS THE RIGHT THING.
THERE IS BROAD AGREEMENT AS THE
GENTLEMAN FROM NORTH CAROLINA
SUGGESTED WITH MYSELF, WITH
HIM, AND BROAD AGREEMENT IN
THIS HOUSE THAT AUTOMOBILE
DEALERS IN THE NORMAL COURSE OF
THEIR BUSINESS DO NOT LEND
MONEY AND ARE NOT FINANCIAL
INSTITUTIONS AND SHOULD NOT BE
SUBJECT TO THE ADDITIONAL
REGULATION OF THE CFPA.
IF, HOWEVER, THEY DO LEND MONEY
AND ACT LIKE FINANCIAL
INSTITUTIONS, THEN THEY WILL BE SUBJECT.
THAT'S WHAT THIS BILL SAYS.
IT IS THE RIGHT THING TO SAY.
I THINK WE HAVE REACHED A GOOD
CONCLUSION ON THIS.
I THANK THE GENTLEMAN FROM
NORTH CAROLINA VERY MUCH FOR
HIS VERY GOOD AND CONSTRUCTIVE
WORK
I RESERVE THE BALANCE OF MY
TIME.
THE CHAIR: THE GENTLEMAN RESERVES.
CAROLINA.
MR. WATT: I YIELD ONE MINUTE TO
THE CHAIR OF THE COMMITTEE.
THE CHAIR: THE GENTLEMAN FROM
MASSACHUSETTS IS RECOGNIZED.
MR. FRANK: I'M VERY APPRECIATE
WHYIVE OF TWO OF THE MOST
CONSTRUCTIVE MEMBERS OF THE
COMMITTEE, THE GENTLEMAN FROM
NORTH CAROLINA, THE GENTLEMAN
FROM CALIFORNIA HAVE BEEN
WORKING TOGETHER ON THIS.
WE HAVE A MIX HERE OF POLICY
DIFFERENCE, BUT THEN ALSO SOME
TECHNICAL QUESTIONS.
CLEARLY THERE WAS A DIFFERENCE
ON WHETHER OR NOT AUTO DEALERS
SHOULD GET CERTAIN KIND OF
EXEMPTION.
THE MAJORITY OF THE COMMITTEE
FELT THE AUTO DEALER SITUATION
WAS SUCH, I WOULD THINK
PROBABLY PARTICULARLY BECAUSE
OF THE STRESSES THEY UNFAIRLY
HAVE
BY THE CHAOS OF THE AUTO
INDUSTRY, THEY DID DESERVE SOMETHING.
ONE SUCH QUESTION WAS RESOLV
OF.
I WAS IN THE MINORITY ON THAT.
THERE WAS TECHNICAL ISSUES
ABOUT HOW TO WORK IT OUT.
I'M VERY PLEASED TWO OF MORE
THOUGHTFUL MEMBERS ARE
CONTINUING TO COLLABORATION ON THIS.
THE MANAGER'S AMENDMENT HAD
SOME IMPROVEMENT IN THE
SITUATION THAT WAS MUTUALLY AGREED TO.
THERE IS ROOM, I BELIEVE, FOR
FURTHER CONVERSATION AND
REFINEMENT.
SO I WANT TO EXPRESS FIRST
APPRECATE.
SECONDLY, MY WILLINGNESS TO THE
EXTENT MY ROLE AS CHAIR OF THE
COMMITTEE WOULD BE RELEVANT TO
TRY TO EFFECTUATE WHAT THEY
WORK OUT.
THE CHAIR: THE GENTLEMAN FROM
CALIFORN
CAMPBELL: I'LL CONTINUE TO
RESERVE. THE CHAIR: THE GENTLEMAN
RESERVES.
THE GENTLEMAN FROM NORTH CAROLINA IS RECOGNIZED.
MR. WATT: MADAM CHAIR, I'LL
JUST SAY IN CLOSING ONE OF THE
OTHER WONDERFUL THINGS THAT'S
COME OUT OF THIS, PRIOR TO
THIS, MR. CAMPBELL AND I NEVER
REALLY HAD AN OPPORTUNITY TO
ROLL UP OUR SLEEVES AND WORK ON
ISSUES TOGETHER.
IT'S BEEN A JOY TO WORK WITH
HIM.
AND HE'S BEEN VERY
I WANT TO RESERVE MYSELF ENOUGH
TIME TO ASK UNANIMOUS CONSENT TO WITHDRAW THE AMENDMENT.
I DON'T WANT TO
HE HAS THE LAST WORD.
THE CHAIR: THE GENTLEMAN FROM CALIFORNIA IS RECOGNIZED.
MR. CAMPBELL: THANK YOU, MADAM
CHAIR.
ENJOYED WORKING WITH YOU AS WELL.
I'M GLAD THAT WE ARE ABLE TO
WHEREWE ARE ON THIS AND LOOK
FORWARD TO WORKING IN THE
FUTURE AS THE BILL MOVES FORWARD.
I
TIME.
THE CHAIR: THE GENTLEMAN YIELDS
. WATT: WITH THAT I ASK
UNANIMOUS CONSENT TO WITHDRAW
THE AMENDMENT.
THE CHAIR:
THE AMENDMENT IS WITHDRAWN.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBE
HOUSE REPORT 111-370. FOR WHAT PURPOSDOES THE
GENTLEMAN FROM PENNSYLVANIA RISE?
MR. KANJORSKI: I HAVE AN
AMENDMENT AT THE DESK.
THE CHAIR: DOES THE GENTLEMAN
RISE AS THE DESIGNEE OF THE
GENTLEMAN FROM MASSACHUSETTS?
MR. KANJORSKI: YES.
THE CHAIR: THE CLERK WILL
DESIGNATE THE AMENDMENT.
THE CLERK: AMENDMENT NUMBER 18,
PRINTED IN HOUSE REPORT NUMBER
111-370, OFFERED
KANJORSKI OF PENNSYLVANIA.
THE CHAIR: PURS
-- PURSUANT TO HOUSE RESOLUTION
964, THE GENTLEMAN FROM
PENNSYLVANIA, MR. KANJORSKI,
AND A MEMBER OPPOSED, EACH WILL
CONTROL FIVE MINUTES.
THE CHAI
GENTLEMAN FROM PENNSYLVANIA.
MR. KANJORSKI: MADAM CHAIRMAN,
I RISE IN SUPPORT OF THIS
AMENDMENT.
NATIONALLY RECOGNIZED
STATISTICAL RATING
ORGANIZATIONS ARE THOSE CREDIT
RATING AGENCIES THAT ARE
REGISTERED WITH THE SECURITIES
AND EXCH
THEREFORE REGULATED.
MOST OFTEN THE PHASE IS
SHORTENED
NRSRO.
HOWEVER IN FORMAL CONTRACTS AND
STATUTES, THE WORDS ARE SPELLED
OUT AND EACH WORD MATTERS.
UNFORTUNATELY AN AMENDMENT TO
CHANGE ONE OF THESE WORDS WAS
INADVERTENTLY ACCEPTE DURING
THE MARKUP.
WE SWITCHED OUT THE WORD
RECOGNIZE FOR THE WORD REGISTER.
IF ENACTED INTO LAW, SUCH A
CHANGE WOULD PUT THOUSANDS OF
CONTRACTS IN DEFAULT AND UPSET
NUMEROUS FEDERAL AND STATE
LAWS, RULES, AND REGULATIONS.
ALTHOUGH WELL INTENDED, SUCH A
EMINGLY MINUSCULE CHANGE
COULD HAVE DISASTER'S UNINTENDED CONSEQUENCES.
WE MUST NOT PUT CONTRACTS IN
AND REGULATIONS.
THEREFORE I URGE MY COLLEAGUES
TO SUPPORT THIS AMENDMENT AND
REIN
THIS IMPORTANT LEGISLATION.
I RESERVE THE BALANCE OF MY
TIME.
RESERVES. FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM NEW JERSEY SEEK
>> TO CLAIM TIME IN OPPOSITION.
THE CHAIR: THE GENTLEMAN IS
RECOGNIZED FOR FIVE MINUTES.
>> THANK YOU, I YIELD MYSELF
FOUR MINUTES.
THE CHAIR: THE GENTLEMAN IS
RECOGNIZED FOR FOUR
MR. GARE REST: I THANK THE
GENTLEMAN FROM PENNSYLVANIA FOR HIS AMENDMENT.
MORE THAN THAT I SHOULD SAY I
THANK THE GENTLEMAN FOR
ADDRESSING THIS LARGER ISSUE OF
C.R.A.'S FOR A NUMBER OF MONTHS.
CLAIM TIME IN OPPOSITION JUST
ON THE AMENDMENT BECAUSE I
THINK WE COULD PROBABLY WORK
THIS OUT IN A DIFFERENT WAY.
THE GENTLEMAN AND I WORKED FOR
A LONG TIME TRYING TO ADDRESS
THE ISSUE OF CREDIT RATING
AGENCIES BECAUSE BOTH OF US
REALIZE THAT WHEN YOU LAY OUT
THE REASONS WHY WE ARE IN THIS
FINANCIAL MESS THAT WE ARE IN
RIGHT NOW, WE MAY DISAGREE ON
THIS POINT OR THAT POINT AS TO
EXAC
BUT
TO CONCLUSIONS
C.R.A.'S PLAYED A HUGE PART TO
BRING US WHERE WE ARE TODAY
WITH THIS FINANCIAL MESS.
THE REASON IT DID WAS BECAUSE
SO MANY PEOPLE FAILED TO
EXERCISE WHAT WE WOULD CALL
THEY MADE THEIR INVESTMENTS.
WHETHER THAT WAS A SMALL
INVESTORS, MIDDLE-SIZED
INVESTORS, OR THE SO-CALLED
KNOWLEDGEABLE INVESTORS ON WALL
STREET FAILED TO
NORMAL TIMES THEY WOULD HAVE
INSIDE THEM TO SAY WHAT IS THE
PROPER DECISION MAKE.
WHAT RISKS SHOULD I TAKE HERE
OR THERE.
WHY WAS THAT, THOUGH, IS THE QUESTION.
WE LOOKED AT A WLE BUNCH OF
THINGS AND TRIED TO COME UP
WITH CHANGES TO THE REGULATIONS
OF T C.R.A.'S, CREDIT RATING
AGENCIES, AND WE MADE A LOT OF
CHANGES THAT WERE IMPROVEMENTS.
I THINK WE CAME DOWN TO ONE
POINT IS THERE WAS MUCH
RELIANCE UPON CREDIT RATING AGENCIES
JUST BECAUSE THE C.R.A. CAME
OUT AND SAID THIS PARTICULAR
SECURITY OR THIS PARTICULAR
FINANCIAL PRODUCT WAS RATED
TRIPLE-A, REGARDLESS OF WHAT
WAS ACTUALLY IN THE PACKAGE,
REGARDLESS OF THE FACT MAYBE IT
WAS JUST A COM
SUBPRIME MORTGAGE WAS NO
LIKELIHOOD, WHATSOEVER, THEY
WOULD BE PAID OFF, THEY GOT THE
TRIPLE-A
PEOPLE INVESTED IN IT AND OF
COURSE THE REST IS HISTORY.
ONE OF THE REASONS WHY WE THINK
THEY GOT THE SEAL OF APPROVAL
AND WHY INVESTORS LOOKED AT
THAT AND SAID IT WAS OK WAS
BECAUSE THEY HAD THE SEAL OF
APPROVAL FROM THE FEDERAL
GOVERNMENT.
THEY WERE LISTED AS THE
C.R.A.'S WERE LISTED AS
NRSRO'S,
REGISTERED.
MERELY THEY WERE REGISTERED.
NO SEAL OF APPROVAL.
NO STAMP OF GOOD HOUSEKEEPING
SEAL OF APPROVAL.
JUST THEY HAD GONE THROUGH THE
MOTIONS AND SIMPLY REGISTERED
WITH THE GOVERNMENT AS BEING
NATIONALLY REGISTERED
STATISTICAL RATING
ORGANIZATIONS. THAT IS WHY I THINK IT MADE
GOOD SENSE TO TAKE AWAY THAT
SEAL OF APPROVAL AND THAT IS
WHY ALSO I BELIEVE THAT THIS
LEGISLATION, THIS AMENDMENT IN
COMMITTEE, PASSED IN A
BIPARTISAN MANNER OUT OF
COMMITTEE.
NOW, I RECOGNIZE I'M ACTUALLY
ON THE FLOOR NOW ODDLY ENOUGH
DEPENDING THE -- DEFENDING THE
ACTIONS OF THE COMMITTEE FOR A
CHANGE AND I UNDERSTAND THE
POTENTIAL PROBLEMS.
I WOULD
OTHER THINGS COULD BE DONE
OTHER THAN JUST STRIPPING THIS
OUT AND GOING BACK TO THE WAY
IT WAS BEFORE.
I WOULD SUGGEST THAT WE LEAVE
IT AS
WE GO FORWARD THROUGH THE
PROCESS IF WE FIND THE -- MAYBE
ITS MINUTIA, MAYBE NOT, AS FAR
AS SOME STATE'S REGULATIONS OR
OTHER FEDERAL REGULATIONS THAT
REFER TO THIS, I BET YOU THERE
IS ANOTHER SIMPLER WAY TO -- I
BET YOU THERE IS A SIMPLER WAY
TO CORRESPONDENT THIS --
CORRESPONDTHIS BACK.
I LOOK FORWARD TO WORKING
THE CHAIR
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
THE GENTLEMAN FROM PENNSYLVANIA
IS RECOGNIZED.
MR. CAN JOR -- KANJORSKI: I
YIELD SUCH TIME AS HE MAY
REQUIRE TO THE CHAIR OF THE
COMMITTEE.
THE CHAIR: THE GENTLE MASSACHUSETTS.
MR. FRANK: I AGREE WITH WHAT HE
SAID ABOUT CREDIT RATING.
I FOR THE RECORD WOULD LIKE TO
MAKE AN ASSERTION I KNOW HE
AGREES WITH.
WHEN HE TALKS ABOUT OUR
AGREEMENT ON THE C.R.A.'S AND
ROLE, WE ARE TALKING ABOUT THE
CREDIT RATING AGENCIES, NOT THE
COMMUNITY REINVESTMENT ACT THE
OTHER C.R.A. WITH WHICH WE
SOMETIMES PEOPLE DON'T PAY FULL
ATTENTION.
I DON'T WANT TO GET ANYBODY TOO AGITATED.
HE'S RIGHT.
HE AND I COLLABORATED ON THE
LEGISLATION TO REMOVE THE
STATUTORY
HE'S ALSO CORRECT, WE FULLY
AGREE, I THINK IT'S VERY TRUE
UNANIMITY, WITH THE PURPOSE HE
ARTICULATED.
TELLING THE AVERAGE INVESTOR,
PAY ATTENTION ON YOUR OWN.
DON'T RELY ON THE RATING AGENCIES.
DON'T SUBCONTRACYOUR JUDGMENT TO THEM.
I AM FRUSTRATED.
I WOULD HOPE THAT PEOPLE OUT IN
THE ECON
ADVANTAGE OF THE FULL LEGAL
RIGHTS THEY HAVE TO CREATE SOME
BUY SITE RATINGS AGENCIES.
THAT WOULD BE HELPFUL. WE CHECKED.
THERE WERE NO OBSTACLES TO
DOING IT.
I HAD FRUSTRATION WE WEREN'T ABLE TO DO MORE.
I THINK WE HAVE DONE AS MUCH AS
ANYBODY COULD THINK OF.
I HAVE SEEN ARTICLES SAYING WHY
DIDN'T YOU DO MORE BUT THEY
WERE ABSENT OF ANY SUGGESTION.
I THINK IT WOULD BE BETTER IF
WE HAD RATING AGENCIES.
IN THE INTERIM WE HAVE TOLD
PEOPLE USE YOUR OWN JUDGMENT,
AS THE GENTLEMAN ACKNOWLEDGED
OUT.
GOING FORWARD, THE PROBLEM WE
GOT WAS FROM A NUMBER OF STATES
AND PRIVATE INSTITUTIONS THAT
THE OLD LANGUAGE.
I AM PLEASED THE GENTLEMAN SAID LET'S WORK TOGETHER.
I THINK IT WOULD MEAN MEETING
WITH VARIOUS OF THE STATE
AGENCI AND PENSION FUNDS TO
SEE IF THERE IS SOME
LEGISLATIVE FIX WE COULD ADOPT
SHORT OF GOING BACK TO THE OLD WAY.
I AGREE WITH HIM AS TO THE
PURPOSE OF CHANGING THE SAME SO
THAT WE CAN ALLEVIATE THIS
PROBLEM THERE.
SO WITH THAT I WOULD BE WILLING
TO SAY THERE IS NO NEED FOR THE
AMENDMENT EVEN THOUGH WE HAVE
AN AGREEMENT.
WE'LL ASK OUR HARDWORKING AND
VERY CREATIVE STAFFS
OFTEN WORK VERY WELL TOGETHER
TO MEET WITH THOSE WHO HAVE
RAISED THIS ISSUE TO SEE IF
THERE IS SOMETHING ELSE WE
COULD DO THAT WOULD MEET THEIR
CONCERNS SO THEY WOULDN'T HAVE
TO A ETC.
WITH THAT I THINK WE HAVE COME
TO A CONCEPTUAL AGREEMENT AND
IS OFTEN THE CASE WE THE
CONCEPTUAL AGREEMENT AND THE
STAFF WILL DO THE HARD WORK OF
MAKING IT A REALITY.
THE CHAIR: DOES THE GENTLEMAN
RESERVE?
MR. KANJORSKI: I DO.
THE CHAIR: THE GENTLEMAN
RESERVES.
TH GENTLEMAN FROM NEW JERSEY
IS RECOGNIZED.
THE GENTLEMAN HAS ONE MINUTE
REMAINING.
MR. GARRETT: DO YOU HAVE OTHER
MR. KANJORSKI: NO.
THE CHAIR: THE GENTLEMAN FROM
NEW JERSEY HAS THE RIGHT TO
CLOSE.
MR. GARRETT: DO YOU HAVE ANY
OTHER TIME?
MR. KANJORSKI: WE YIELD BAC
OUR TIME AND ASK
THE CHAIR: THE GENTLEMAN FROM
NEW JERSEY IS RECOGNIZED.
MR. GARRETT: I A
CHAIRMAN'S COMMENTS AND LOOK
FORWARD TO SEEING HOW THIS CAN
BE DEALT WITH -- IF THIS
FINALLY DOES PASS AND GOES
THROUGH OVER TO THE SENATE AND
THE CONFERE
MR. FRANK: THE GTLEMAN WOULD YIELD.
MR. GARRETT: YES,IR.
MR. FRANK: I WOULD SAY, IF
THERE WERE TO BE A NO ON THE
VOICE VOTE, I THINK THAT WOULD
BE A REASONABLE END TO THIS
PARTICULAR DISC
WE TALKED ABOUT.
MR. GARRETT: WITH THAT COMMENT
AND ALSO WITH THE UNDERSTANDING
THAT WE ARE NOT TALK
THE OTHER C.R.A., ALTHOUGH IF
WE COULD MAKE A U.C. PUT THAT
AS BEING A CAUSE -- I GUES WE
CAN'T DO THAT.
THAT'S A BRIDGE TOOER FAR.
WITH THAT, I -- TOO FAR.
WITH THAT I YIELD BACK.
THE CHAIR: THE GENTLEMAN YIELDS.
THE QUESTION IS ON THE
AMENDMENT OFFERED BY THE
GENTLEMAN FROM PENNSYLVANIA. SO MANY AS ARE IN FAVOR SAY
AYE.
THOSE OPPOSED, NO.
IN THE OPINION THE NOES HAVE IT.
THE AMENDMENT IS NOT AGREED TO.
.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBER 19 PRINTED IN
HOUSE REPORT 111-370.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM GEORGIA RISE?
>> I RISE AS THE DESIGNEE OF
THE
MR. CON
THEH
OFFER THE AMENDMENT?
MR. MARSHALL: I DO OFFER THE
AMENDMENT.
THE CHAIR: THE CLERK WILL
DESIGNATE THE AMENDMENT.
THE CLERK: AMDMENT NUMBER 19
PRINTED IN HOUSE REPORT 111-370
OFFERED BY MR. MARSHALL OF
GEORGIA.
THE CHA
RESOLUTION 964, THE GENTLEMAN
FROM GEORGIA, MR. MARSHALL, AND
A MEMBER OPPOSED, EACH WILL
CONTROL FIVE MINUTES.
THE CHAIR RECOGNIZES THE
GENTLEMAN FROM GEORGIA.
MR. MARSHALL: I THANK THE
SPEAKER.
THIS IS AN AMENDMENT WHICH IS
IDENTICAL TO A BILL PASSED BY
THE HOUSE EARLIER THIS YEAR IN
MARCH. THE BILL PERMITS WHAT'S
REFERRED TO AS CRAMDOWN IN
CHAPTER 13 WITH REGARD TO
PRIVATE HOME MORTGAGES.
IT IS INTENDED TO ADDRESS THIS
FORECLOSURE CRISIS WITHOUT
TAXPAYERS HAVING TO PUT MONEY
INTO THE DEAL.
IT ESSENTIALLY FORCES THE
PARTIES TO THE DEAL TO DEAL
HAVING VACANCIES AND
FORECLOSURES IN OUR NEIGHBORHOODS.
IN THAT SENSE, IT HELPS OUR
PORTFOLIOS.
IT HELPS THE INDIVIDUALS WHOSE
HOMES MIGHT BE FORECLOSURED
UPON AND IT ACTUALLY HELPS THE
CREDITOR WHO IS FORCED INTO A
CHAPTE
ALMOST EVERY INSTANCE THEIR
PORTFOLIO IS IMPROVED BY NOT
HAVING AS MANY HOUSES IN
FORECLOSURE.
AND IN ALMOST EVERY INSTANCE
THEY GET A BETTER DEAL IN A
CHAPTER 13 PROCESS THAN THEY
WOULD IN A NORMAL FORECLOSURE
PROCESS.
WE SHOULD HAVE DONE THIS LONG
AGO. IT WOULD HAVE HELPED THE
HOUSING CRIS AND
CONSEQUENCELY -- CONS IS HE
WENTLY THE ECONOMY OF AMERICA.
THIS IS MR. CONYERS' BILL.
I COMPLIMENT MS. LOFGREN FROM
CALIFORNIA WHO COULDN'T BE HERE
BECAUSE SHE'S BEEN A REAL
STALWART MOV
WITH THAT I RESERVE THE BALANCE
OF MY TIME.
THE CHAIR: THE GENTLEMAN
RESERVES.
FOR WHAT PURPOSE DOES THE GENTLEMAN FROM VIRGINIA RISE?
>> TO CLAIM THE TIME IN
OPPOSITION.
THE CHAIR: THE GENTLEMAN IS
REC
MR. GOODLATTE: THANYOU, MADAM
CHAIRMAN.
AT THIS MOMENT I'M PLEASED TO
YIELD A M
FROM TEXAS, THE RANKING MEMBER
OF THE JUDICIARY COMMITTEE.
TEXAS IS RECOGNIZED FOR ONE MINUTE.
MR. SMITH: I THANK THE
GENTLEMAN FROM VIRGINIA, MR.
GOODLATTE, THE DEPUTY RANKING
MEMBER OF THE JUDICIARY
COMMITTEE, FOR YIELDING ME
TIME.
MADAM CHAIR WOMAN, THOSE WHO
CONFRONT MORTGAGE FORECLOSURES
ARE UNDERSTANDABLY IN A
DIFFICULT SITUATION.
BUT THIS BANKRUPTCY AMENDMENT
WILL ONLY LEAD TO A WORSE
SITUATION FOR EVERYONE.
THE NUMBER ONE CAUSE OF
FORECLOSURES TODAY IS JOB LOSS.
THE NUMBER TWO CAUSE IS HOMES
THAT ARE MORTGAGED FOR MORE
THAN THEY ARE WORTH.
SENDING THESE HOMEOWNERS WITH
THESE PROBLEMS INTO CHAPTER 13
UPS BANKRUPTCY WILL NOT SOLVE
AT ALL.
THEY DON'T HAVE THE INCOME
REQUIRED THAT IS REQUIRED TO
FILE CHAPTER 13 BANKRUPTCY.
AND THOSE SHOULD HONOR THE
MORTGAGES FOR WHICH THEY FREELY
CONTRACTED.
ALLOWING BANKRUPTCY COURTS TO
CRAM DOWN MORTGAGE PRINCIPAL
WILL ONLY LEAD TO HIGHER
INTEREST RATES AND TUCKER
MORTGAGE TERMS
HOMEOWNERS.
WHY SHOULD THOSE THAT DID
PRICE?
I YIELD BACK. THE CHAIR: THE GENTLEMAN
YIELDS.
THE GENTLEMAN FROM GEORGIA IS
RECOGNIZED.
MR. MARSHALL: I YIELD MYSELF
SUCH TIME AS I MAY CONSUME, AND
JUST A COUPLE OF OBSERVATIONS.
IF IN FACT YOU ARE JOBLESS AND
DON'T HAVE INCOME, YOU ARE NOT
ELIGIBLE FOR CHAPTER 13 AND
CONSEQUENTLY YOU WON'T BE ABLE
TO CRAM DOWN.
IT'S THOSE THAT DO HAVE JOBS,
WHO DO HAVE INCOME WHO COULD
SURVIVE IF THEY HAD THE
OPPORTUNITY TO RESTRUCTURE
THEIR DEBT, WHO WOULD BE
ELIGIBLE, AND IT'S LY THOSE
FOLKS AS FAR AS INCREASING THE
THIS BILL PROVIDES IT IS
RETROACTIVE.
DOESN'T APPLY TO FUTURE
CREDIT.
MANY, MANY EXPERTS HAVE LOOKED
AT THIS AND CONCLUDED IT WILL
CREDIT.
I RESERVE THE BALANCE OF MY
TIME.
THE CHAIR: THE GENTLEMAN
RESERVES.
THE GENTLEMAN FROM VIRGINIA IS
RECOGNIZED.
MR. GOODLATTE: MADAM SPEAKER, I
RECOGNIZE MYSELF FOR TWO
MINUTES.
FIRST, TO SAY THAT THE
GENTLEMAN FROM GEORGIA MAY
ASSERT THAT THIS WILL BENEFIT
CREDITORS, BUT I KNOW A FEW
CREDITORS WHO EXTEND HOME
MORTGAGE LOANS THAT FAVOR THIS
LEGISLATION.
OUR COUNTRY HAS FALLEN INTO A
SERIOUS ECONOMIC RECESSION OR A
RECESSION THAT'S WORSENED BY
THE FORECLOSURE CRISIS.
UNTIL WE CAN ADDRESS THE RISING
NUMBER OF FORECLOSURES, IT WILL
BE DIFFICULT FOR THE ECONOMY
RECOVER.
UNFORTUNATELY, THIS BANKRUPTC
AMENDMENT, WHICH I DON'T THINK
BELONGS IN THIS LEGISLATION TO
BEGIN WITH, NOT ONLY FAILS TO
SOLVE THE FORECLOSURE CRISIS
BUT ALSO WILL MAKE THE CRIS
DEEPER, LONGER AND WIDER.
ALLOWING BANKRUPTCY COURTS TO
MODIFY HOME MORTGAGES WILL HAVE
ADVERSE CONSEQUENCES FOR ALL
WHILE PROVIDING LITTLE REAL
RELIEF TO DISTRESSED BORROWERS.
BANKRUPTCY CRAMDOWN WILL
INVARIABLELY LEAD TO HIGHER
INTEREST RATES AND LESS
G
FUTURE BORROWERS.
THE GENTLEMAN MAY CLAIM THAT IT
WON'T EFFECT FUTURE BORROWERS,
BUT THE FACT OF THE MATTER IS
IF THIS CAN BE DONE NOW FOR
THIS PURPOSE, THE ADVOCATES FOR
THIS LEGISLATION WOULD LIKE TO
SEE THIS MADE IN THE FUTURE A
PERMANENT PROVISION IN OUR
BANKRUPTCY LAWS AND IT WILL
HAVE THE EFFECT OF CAUSING
INTEREST RATES TO GO UP AND
CREDIT TO BE LESS AVAILABLE.
UNEMPLOYMENT HAS BEEN THE
DRIVING FACTOR BEHIND MOST
FORECLOSURES, BUT BECAUSE
INDIVIDUALS WITHOUT REGULAR
INCOME MAY NOT FILE FOR
BANKRUPTCY UNDER CHAPTER 13,
CRAMDOWN WILL DO NOTHING FOR
THOSE MOST IN NEED OF RELIEF.
ADDITIONALLY, MANY BORROWERS
WALK AWAY FROM THEIR HOMES NOT
BECAUSE THEY CAN'T AFFORD THEIR
MONTHLY PAYMENTS BUT BECAUSE
THEIR HOMES ARE MORTGAGED FOR
MORE THAN THEY'RE WORTH.
THESE BORROWERS SHOULD LIVE
WITH THE RESPONSIBILITY FOR
THEIR DECISIONS, NOT RECEIVE
BAILOUTS FROM BANKRUPTCY
COURTS.
FURTHERMORE, WE MUST NOT FORGET
THAT CRAMDOWN WILL NOT ONLY
IMPACT LENDERS BUT INVESTORS AS
WELL.
THESE INVESTORS OFTEN INCLUDE
PENSION FUNDS REPRESENTING THE
RETIREMENT SAVINGS OF MILLION
WE SHOULD NOT PASS THE COST OF
IRRESPONSIBLE BORROWING AND
LENDING OFF ON CURRENT AND
FUTURE RETIREES.
I YIELD MYSELF AN ADDITIONAL 30
SECONDS.
THE CHAIR: THE GENTLEMAN IS
RECOGNID FOR 130EKDS.
MR. GOODLATTE: THERE IS NO
REASON TO ALLOW MORTGAGE
CRAMDOWN WITH THE HIGH COST
CONSIDERING IT WILL PRODUCE
ONLY MODERATE RESULTS AT BEST.
IF WE PASS THIS AMENDMENT, WHAT
MESSAGE
OF HOMEOWNERS WHO ARE MAKING THEIR PAYMENTS ON TIME?
HOW CAN WE ASK THEM TO FOOT THE
BILL FOR THEIR NEIGHBOR'S
MORTGAGES.
WHAT DO PEOPLE THINK BACK THEY
PAY THE PRINCIPAL -- WE MUST
SOLVE THE FORECLOSURE CRISIS
T WE MUST AVOID THE CRAMDOWN
THAT TAXES THE RESPONSIBLE AND
HOLDS NO
I RESERVE THE BALANCE OF MY
TIME.
THE CHAIR: THE GENTLEMAN RESERVES.
THE GENTLEMAN FROM GEORGIA.
MR. MARSHALL: I YIELD MYSELF
SUCH TIME AS I MAY CONSUME.
TO HOMEOWNERS WE WILL SAY THEIR
HOME WON'T DECLINE IN VALUE.
NO TAXPAYERS' DOLLARS GOES INTO
THE DEAL AT ALL.
TO THOSE WHO CANNOT AFFORD
CHAPTER 13, OBVIOUSLY OTHER
SOME REMEDY IS CALLED FOR THAN
THIS.
BUT FOR THOSE WHO CAN AFFORD A
CHAPTER 13, YOU'RE HELPING
EVERYBODY BY FILING A CHAPTER
13.
AND HAVING SPENT YEARS IN THIS
BUSINESS, CREDITORS WILL NOT BE
HARMED, AND THE COST OF CREDIT
WILL NOT GO UP.
BECAUSE IN THIS BILL IT ONLY
APPLIES TO EXISTING MORTGAGES.
IT DOESN'T APPLY TO FUTURE
MORTGAGES.
SO IT'S WIDELY CONCEDED.
UP
THIS IS TRULY A WIN-WIN.
I WAS ORIGINALLY OPPOSED.
I'VE BEEN IN THIS BUSINESS FOR
A LONG TIME.
I HAD A CHANGE OF HEART.
THE CHANGE OF HEART FOCUSES ON
THE CRISIS THAT WE'RE IN RIGHT
NOW.
YOU CAN GO TO MY WEBSITE AND ON
THE FRONT PAGE OF THE WEBSITE
THOSE WHO
FIND A DETAILED EXPLANATION WHY
THIS IS ABSOLUTELY THE RIGHT
THING TO DO.
AND WITH THAT IT SEEMS TO ME
THAT THE GENTLEMAN FROM
VIRGINIA HAS SAID.
SO I'LL RESERVE THE BALANCE OF
MY TIME.
THE CHAIR: THE GENTLEMAN
RESERVES.
THE GENTLEMAN FROM VIRGINIA IS
RECOGNIZED.
MR. GOODLATTE: MADAM CHAIRMAN,
I'LL YIELD 1 1/2 MINUTES TO THE
GENTLEMAN FROM CALIFORNIA, MR.
LUNGREN, A MEMBER OF THE
COMMITTEE.
THE CHAIR: THE GENTLEMAN HAS 1
1/2 MINUTES REMAING.
THE GENTLEMAN FROM CALIFORNIA IS RECOGNIZED FOR 1 1/2
MINUTES.
MR. LUNGREN: THANK YOU VERY
MUCH, MADAM CHAIR.
THIS IS A PRIME EXAMPLE OF GOOD
INTENTIONS RESULTING IN BAD
POLICY.
MY AREA IS ONE OF THE AREAS
AS BADLY AS ANY WITH RESPECT TO
FORECLOSURES.
WE HAVE NOT CLEARED THE MARKET
YET.
WE ARE IN DEEP, DEEP SHAPE.
AND THE LAST THING WE NEED IS
TO INCREASE THE LEVEL OF
UNCERTAINTY WITHIN THE MORTGAGE
MARKET, AND THAT'S WHAT THIS
DOES.
IT MAY BE LIMITED BY ITS TERMS,
BUT IF WE DO IT NOW WE CAN DO
IT AGAIN.
SOME PEOPLE MAY ASK, WHY WOULD
WE NOT ALLOW CRAMDOWN FOR
RESIDENTIAL HOUSING?
THE SUPREME COURT JUSTICE
STEVENS, LOOKING AT THIS WITH A
CASE IN PREVIOUS YEARS, SAID
THE FAVORABLE TREATMENT OF
RESIDENTIAL MORTGAGES WAS
INTENDED TO ENCOURAGE THE FLOW
OF CAPITAL INTO THE HOME LENDING MARKET.
THAT IS WHY THIS EXISTS IN THE
BANKRUPTCY CODE TODAY.
PRECISELY BECAUSE IT ALLOWS
MORE PEOPLE ACCESS TO
PURCHASING HOMES
ARE NOT AS HIGH AS THEY
OTHERWISE WOULD BE.
PRECISELY BECAUSE YOU CANNOT
ALLOW CRMDOWN
PROCEEDINGS NOW.
THAT'S THE SOLE SUBSTANCE OF
THE REASON WHY WE HAVE THIS.
WE'RE GOING TO REVERSE THIS AS
A MATTER OF PUBLIC POLICY.
IT IS GOING TO CREATE GREATER
UNCERTAINTY.
AND THEREBY INCREASE THE
PREMIUMS IN THE FUTURE FOR
EVERYBODY ELSE AND DENY ACCES
TO THE HOUSING MARKET FOR THOSE
WE SEEK TO HELP.
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
THE GENTLEMAN FROM GEORGIA IS
RECOGNIZED.
MR. MARSHALL: I'LL SIMPLY
REPEAT, BECAUSE THIS IS
APPLICABLE TO EXISTING
MORTGAGES IT WILL HAVE NO
EFFECT ON THE COST OF FUTURE
MORTGAGES.
THE BEAUTY OF IT IS WE'LL HAVE
FEWER FORECLOSURES, SO THE
GENTLEMAN ROM CALIFORNIA AND
THOSE IN CALIFORNIA WHO ARE IN
NEIGHBORHOODS THAT ARE REALLY
STRUGGLING WITH THIS HOUSING
CRISIS COLLAPSING BECAUSE OF
VACANCIES, ALL OF THOSE WILL BE
HELPED BY THIS WITHOUT PUTTING
A SINGLE DIME OF TAXPAYER DOLLARS IN THE DEAL.
IT SEEMS TO ME THAT'S THE
COMPLETE JUSTIFICATION FOR
DOING THIS.
WE SHOULD HAVE DONE IT LONG
AGO.
I RESERVE THE BALANCE OF MY
TIME.
THE CHAIR: THE GENTLEMAN FROM
VIRG
THE GENTLEMAN FROM GEORGIA IS
RECOGNIZED.
MR. MARSHALL: I YIELD MYSELF --
HOW MUCH TIME DO I HAVE LEFT?
THE CHAIR: THE GENTLEMAN HAS
ONE MINUTE AND ONE HALF
REMAINING.
MR. MARSHALL: I APPRECIATE THAT.
YOU KNOW, THERE'S A THING
CALLED THE TRAGEDY OF THE
COMMONS, AND IT'S A THEORETICAL
CONCEPT THAT APPLIES IN THIS
PARTICULAR CASE.
COMMON AREAS FOR GRAZING, AND
THEN THOSE
IN AND OVERFWRAZE THAT AREA.
AND THE EFFECT IS NOT --
OVERGRAZE THAT AREA.
AND THE EFFECT IS NOT THAT
EVERYBODY GOT POORER.
I AM NOT INTERESTED IN FOOLING
AROUND WITH ME IN BANKRUPTCY
COURT OR ANYTHING LIKE THAT.
BUT COMBINED CREDITORS ARE
ADVANTAGED BY HAVING FEWER
FORECLOSURES ON THE MARKET IN A
SITUATION LIKE THIS.
HAVING REPRESENTED
OF BANKS, HAVING SPENT AN AWFUL
LOT OF MY LIFE AS A BANKRUPTCY LAWYER, LAW PROFESSOR,
COMMERCIAL LITIGATOR, I'M
ABSOLUTELY CONVINCED THAT I WAS
WRONTO INITIALLY REJECT THIS
CONCEPT.
THAT IF WE APPLY IT NOW -- WE
SHOULD HAVE DONE IT A COUPLE
YEARS AGO -- BUT IF WE APPLY IT
NOW WE'LL CATCH AN ONGOING WAVE
OF FORECLOSURES.
IT WILL HELP THE INDIVIDUALS
WHO CAN RESCUE THR HOMES.
IT WILL LESSEN THE NUMBER OF
FORECLOSURES CONSEQUENTLY
HELPING ALL OTHER HOMEOWNERS,
NO TAXPAYER DOLLARS ARE
INVOLVED.
AND CREDITORS ARE ASSISTED BY
THIS WITH NO THREAT WHATSOEVER
TO AN INCREASE IN MORTGAGE
CRIS.
WE PASSED THIS BEFORE.
WE SHOULD PASS IT AGAIN.
IT'S APPROPRIATE TO THIS
PARTICULAR PEES OF LEGISLATION
BECAUSE THE WORK 'RE DOING --
PIECE OF LEGISLATION BECAUSE
PROMPTED BY THE CREDIT CRIS
THAT WAS PROMPTED INITIALLY BY
HOUSING ISSUES.
SO HOUSING SHOULD BE ADDRESSED
AS PART OF FIXING THE OVERALL
FINANCIAL SITUATION.
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
MR. MARSHALL: I THANK THE
SPEAKER. THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM CALIFORNIA SEEK
RECOGNITION?
>> MADAM SPEAKER, I'D ASK
UNANIMOUS CONSENT
EXTEND MY REMARKS IN OPPOSITION
TO THIS AMENDMENT.
THE CHAIR: WITHOUT OBJECTION,
SO ORDERED.
THE QUESTION IS ON THE
AMENDMENT OFFERED BY THE
GENTLEMAN FROM GEORGIA. THOSE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR,
THE AYES HAVE IT.
THE AMENDMENT IS --
>> MADAM SPEAKER, I'D ASK FOR A
RECORDED VOTE.
THE CHAIR: PURSUANT TO CLAUSE 6
OF RULE 18, FURTH PROCEEDINGS
ON THE AMENDMENT OFFERED BY THE
GENTLEMAN FROM GE
POSTPONED.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBER 26 PRINTED IN
HOUSE REPORT 111-370.
FOR WHAT PURPOSE DOES THE
GENTLEMAN FRO
MR. GARRETT: AMENDMENT AT THE
DESK.
AMENDMENT.
THE CHAIR: FOR WHAT PURPOSE
DOES THE GENTLEMAN FROM NEW
JERSEY RISE?
MR. GARRETT: I HAVE AN AMENDMENT AT THE DESK.
THE CHAIR: THE CLERK WILL
DESIGNATE THE AMENDMENT.
THE CLERK: AMENDMENT NUMBER 26
PRINTED IN HOUSE REPORT 111-370
OFFE
JERSEY.
THE CHAIR: PURSUANT TO HOUSE
RESOLUTION 964, THE GENTLEMAN
FROM NEW JERSEY, MR. GARRETT,
AND A MEMBER OPPOSED, EACH WILL
CONTROL FIVE MINUTES.
THE CHAIR RECOGNIZES THE
GENTLEMAN FROM NEW JERSEY.
MR. GARRETT: AND I THANK THE
MADAM CHAIR.
I WAS JUST AT THE MICROPHONE A
MOMENT AGO AND SPEAKING ABOUT
THE RECOGNI
HAVE ON BOTH SIDES OF THE AISLE
THAT THE C.R.A.'S, THE CREDIT
RATING AGENCIES, WERE PART IN
PAR SELL TO THE FINANCIAL
SITUATION THAT WE FIND
OURSELVES IN RIGHT NOW.
AND DURING THE TIME I RAISED
TWO -- PROBABLY THREE
SIGNIFICANT POINTS ON THIS AND
WHAT WE NEED TO DO WHEN IT
COMES TO REFORM.
I MENTIONED THE FACT THAT WE
NEED TO REDUCE INVESTORS'
RELIANCE UPON RATING AGENCIES.
I MENTIONED ALSO THATE NEED
TO ENCOURAGE INVESTORS DUE
DILIGENCE THAT SORT OF GOES
WITH IT.
AND THE THIRD POINT IS IT
RAISE IS WE NEED TO HAVE INCREASED COMPETION BETWEEN
THE CREDIT RATING AGENCIES.
UNFORTUNATELY, IF YOU LOOK AT
THE BILL BEFORE US, TITLE 5 OF
THE BILL, INCLUDES A NUMBER OF
PROVISIONS THAT WERE BASICALLY
EXACERBATE THE CURRENT PROBLEMS WITHIN THE INDUSTRY.
AND AS I SAID ON THE FLOOR
YESTERDAY, TO ACTUALLY MAKE IT
HARDER, MORE DIFFICULT FOR INVESTORS TO GET THE
INRMATION THAT THEY NEED IN
ORDER TO MAKE THOSE DECISIO
THAT THEY HAVE TO BEFORE THEY
INVEST.
.
WE PASSED THE CREDIT AGENCY
REFORM LEGISLATION ABOUT TEE
YEARS AGO, THE MAIN FOEOUS WAS
TO DO WHAT?
I CREASE COMPETION BETWEEN
THE VARIOUS RATING ANCIES.
THERE WAS ONLY ABOUT THREE
MAJOR ONES BUT WE WERE GOING TO
TRY TO MAKE SMALL ONES GET INTO
THE MARKET WITH MORE
COMPETION.
MAYBE WE COULD ELIMINATE SOME OF THE PROBLEMS.
THAT WAS THREE YEARS AGO.
THE REASON, THEN, I VOTED JUST
A SHORT TIME AGO THIS YEAR
AGAINST THE LEGISLATION THAT
CAME OUT OF COMMITTEE THAT WAS
GOING TO TRY TO REFORM THE
C.R.A.'S BECAUSE BECAUSE -- WAS
BECAUSE IT DID THE EXACT
OPPOSITE.
IT DECREASED THE COMPETITION IN
THE INDUSTRY.
I THINK WE NEED MORE COMPETITION.
THE REASON THAT THE LEGISLATION
THAT CAME OUT OF COMMITTEE I
THOUGHT WOULD DECREASE
COMPETITION IS BECAUSE, WELL,
IT WOULD IMPOSE A WHOLE BUNCH
OF NEW LIABI
C.R.A.'S AND IT WAS BASICALLY
DISCOURAGE THEM TO GET INTO THE
INDUSTRY AT ALL.
AND THAT'S MAYBE ONE OF THE
REONS WHY IN THE COMMITTEE'S
LANGUAGE THERE IS PROVISION IN
IT THAT SAYS, WE ARE NOT GOING
TO LET YOU OUT.
ONCE YOU ARE AN NSRO, WE ARE
NOT GOING THROAT YOU OUT OF IT
BECAUSE WITH ALL THIS
ADDITIONAL LIABILITY, NO ONE
WOULD WANT TO BE A
ANYMORE.
THE AMENDMENT THAT WE HAVE
BEFORE US RECOGNIZES THAT
PROBLEM.
WE WANT TO HAVE COMPETITION BUT
YOU HAVE ALL THESE ADDITIONAL
RULES, REGULATION, AND
LIBLINGTS ON THEM THEY ARE ALL
GOING -- LIABILITIES ON THEM
THEY ARE ALL GOING TO FLEE.
WE BELIEVE WE CAN COME TO A
MIDDLE GROUND AND THAT IS TO
SAY ALLOW THOSE C.R.A.'S OF THE
SMALLER SIZE, THAT IS NET
REVENUES OF $250 MILLION OR
LESS IN A YEAR TO BE ABLE TO
RETAIN THE ABILITY TO DEREGISTER.
THAT'S WHAT THE LEGISLATION
DOES BEFORES US.
WITH THAT I RESERVE THE BALANCE
OF MY TIME.
THE CHAIR: THE GENTLEMAN
RESERVES. FOR WHAT PURPOSE DOES THE
GENTLEMAN FROM PENNSYLVANIA
MR. KANJORSKI: I CLAIM THE TIME
IN OPPOSITION. THE CHAIR: THE GENTLEMAN IS
RECOGNIZED FOR FIVE MINUTES.
MR. KANJORSKI: MADAM
CHAIRWOMAN, UNDER CURRENT LAW
CREDIT RATING AGENCIES OPERATE
UNDER A VOLUNTARY SYSTEM OF
REGISTRATION WITH
STATES SECURITIES AND EXCHANGE COMMISSION.
WE CHANGE THAT WITH A PROVISION
IN THE MANAGER'S AMENDMENT THAT
WOULD REQUIRE ALL RATING
AGENCIES WITH APPROPRIATE
EXEMPTIONS TO REGISTER WITH THE
COMMISSION.
THE GENTLEMAN FROM NEW JERSEY'S
AMENDMENT INSERTS A VOLUNTARY
WITHDRAWAL FROM REGISTRATION
WITH THE COMMISSION FOR THOS
RATING AGENCIES WHO EARN LESS
THAN $250 MILLION.
THIS AMENDMENT WOULD HAVE THE
EFFECT OF ALLOWING THE SMALLEST
OF RATING AGENCIES NOW
REGISTERED AS NATIONALLY
RECOGNIZED STATISTICAL RATING
ORGANIZATIONS TO OPT OUT OF THE
SYSTEM AT SOME TIME IN THE FUTURE.
THE PROPOSAL WOULD ALSO
MAINTAIN THE CLOSE SUPERVISION
OF THE LARGEST RATING AGENCIES,
THE ONES MOST LIKELY TO ISSUE
THE RATINGS USED BY INVESTORS.
BASED ON THAT, MADAM
I HAVE NO OPPOSITION TO THIS
AMENDMEN
THE CHAIR: DOES THE GENTLEMAN RESERVE?
MR. KANJORSKI: I RESERVE MY TIME.
THE CHAIR: THE GENTLEMAN FROM
NEW JERSEY IS RECOGNIZED.
MR. GARRETT: IF THE GENTLEMAN
FROM PENNSYLVANIA -- IF THE
GENTLEMAN FROM PENNSYLVANIA HAS
NO OPPOSITION AND HAS NO OTHER
SPEAKERS, IF YOU YIELD BACK,
I'LL JUST CLOSE.
MR. KANJORSKI: I YIELD BACK MY
TIME. THE CHAIR: THE GENTLEMAN
YIELDS.
E GENTLEMAN OM NEW JERSEY.
MR. GARRETT: I'LL CLOSE BY
SAYING I THANK THE GENTLEMAN
FOR HIS SUPPORT OF THE
LEGISLATION.
NO OPPOSITION TO THE AMENDMENT.
AND APPRECIATE THE VERY MANY
MONTHSF WORKING TOGETHER ON
THIS ISSUE AND OTHER ISSUES AS
WITH THAT I YIELD BACK.
THE CHAIR: THE GENTLEMAN YIELDS.
THE QUESTION IS ON THE
AMENDMENT OFFERED BY THE
GENTLEMAN FROM NEW JERSEY.
SO MANY AS ARE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR,
THE CHAIR UNDERSTANDS THAT
AMENDMENTS 29, 30, AND 31 WILL
NOT BE OFFERED.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBER 32 PRINTED IN
HOUSE REPORT
FOR WHAT PURPOSE DOES THE
GENTLEWOMAN FROMLLINOIS RISE?
MS. SCHAKOWSKY:
I HAVE AN AMENDMENT AT E DESK.
THE CHAIR: THE CLERK WILL DESIGNATE THE AMENDMENT.
THE CLERK: AMENDMENT NUMBER 32,
PRINTED IN HOUSE REPORT NUMBER
111-370, OFF
SCHAKOWSKY OF ILLINOIS.
THE CHAIR: PURSUANT TO HOUSE
RESOLUTION 964, THE GENTLEWOMAN
FROM ILLINOIS, MS. SCHAKOWSKY,
AND A MEMBER OPPOSED, EACH WILL
CONTROL FIVE MINUTES.
THE CHAIR RECOGNIZES
GENTLEWOMAN FROM ILLINOIS.
MS. SCHAKOWSKY: THANK YOU,
MADAM CHAIRMAN.
I WANT TO THANK REPRESENTATIVE
TITUS FOR JOINING ME IN
OFFERING THIS IMPORTANT
AMENDMENT TO MAKE SURE THAT THE
NEW CONSUMER FINANCIAL
PROTECTION AGENCY HAS AUTHORITY
TO REGULATE REVERSE MORTGAGES.
IT IS A PROPOSAL THAT IS
VERSE MORTGAGES ARE UNIQUE
MORTGAGE PRODUCTS THAT ALLOW
HOMEOWNERS OVER AGE 62 TO
BORROW AGAINST THEIR HOMES TO
RECEIVE A CASH OR LINE OF
CREDIT.
THE LOAN IS PAID BACK WHEN THE
HOMEOWNER DIES OR SELLS THE
HOME.
IN THE PAST THREE YEARS MORE
REVERSE MORTGAGES HAVE BEEN
ISSUED TO SENIORS.
UNFORTUNATELY, ALL IS NOT WELL
IN THE REVERSE MORTGAGE MARKET.
AN OCTOBER REPORT BY THE
NATIONAL CONSUMER LAW CENTER
FOUND MANY OF THE ABUSIVE
PRACTICE THAT IS WERE COMMON IN
THE SUBPRIME LENDING MARKET
BEFORE ITS COLLAPSE ARE ALSO
TRANSACTIONS.
THOSE PRACTICES INCLUDE HIGH
FEES, INCENTIVES FOR BROKERS
THAT ARE HARMFUL TO BORROWERS,
AND LENDERS STEERING CONSUMERS
TO
ARE NECESSARY.
ALSO, SECURITIZATION AS IN THE
SUBPRIME MARKET IS BECOMING
MORE COMMON FOR REVERSE
MORTGAGES.
UNFORTUNATELY, THE COMPLEXITY
OF THE LOANS AND THE AGE OF THE
TYPICAL BORROWER HAVE MADE THE
REVERSE MORTGAGE MARKET RIPE
FOR SCAM ARTISTS.
WE HAVE TO MAKE SURE THAT
SENIORS WHO USE REVERSE
MORTGAGES ARE PROTECTED AGAINST
UNLAWFUL AND UNFAIR PRACTICES.
THE AMENDMENT I AM OFFERING
SEEKS TO CORRECT AN OVERSIGHT
IN THE CFPA PROVISIONS OF THE BILL.
THE BILL AS WRITTEN GIVES THE
CFPA AUTHORITY OVER A NUMBER OF
CONSUMER THOUGHTS BUT A
MAJORITY OF REVERSE MORTGAGES
TODAY ARE F.H.A. INSURED HOME
EQUITY CONVERSION MORTGAGES
WHICH ARE PRIMARILY REGULAR
LIGHTED BY H.U.D. UNDER THE
NATIONAL HOUSING ACT STATUTE.
THEREFORE AS CURRENTLY WRITTEN,
REVERSE MORTGAGES MAY NOT
CLEARLY FALL WITHIN THE CFPA'S AUTHORITY.
MY AMENDMENT WOULD CLARIFY THAT
THE CFPA DIRECTOR HAS OVERSIGHT
AND REGULATORY AUTHORITY OVE
LENDERS AND BROKERS THAT ISSUE
REVERSE MORTGAGES AND DIRECTS
THE AGENCY TO CONSULT WITH
H.U.D. AS IT D REGULATIONS.
MY AMENDMENT WOULD ALSO REQUIRE
CFPA TO BEGIN A RULE MAKING
WITHIN ONE YEAR OF THE
ENACTMENT IN ORDER TO DEVELOP
REGULATIONS THAT WILL MAKE SURE
REVERSE MORTGAGE TRANSACTIONS
ARE NOT UNFAIR, DECEPTIVE, OR ABUSIVE.
I URGE MY COLLEAGUES TO SUPPORT
THIS AMENDMENT AND I RESERVE
THE BALANCE OF MY TIME.
THE SPEAKER PRO TEMPORE: THE
GENTLEWOMAN RESERVES.
THE GENTLEMAN FROM NEW JERS
FOR WHAT PURPOSE DO YOU SEEK
RECOGNITION?
MR. GARRETT: TO CLAIM TIME IN
OPPOSITION. THE CHAIR: THE GENTLEMAN IS
RECOGNIZED FOR FIVE MINUTES.
MR. GARRETT: I YIELD MYSELF
THREE MINUTES.
THE CHAIR: THE GENTLEMAN IS
RECOGNIZED FOR THREE MINUTES.
MR. GARRETT: I THANK THE MADAM
CHAI
HERE'S AN EXAMPLE OF THE OLD
SAYING, HERE WE GO AGAIN.
THE CFP AMPLET, AN ENTITY --
CFPA, AN ENTITY THAT WE HAVE
ALREADY DISCUSSED BOTH TODAY
AND YESTERDAY IS AN IDEA OF
CONTRACTING CONSUMER CHOICE,
PUTTING LIMITATIONS ON THE
CONSUMER'S ABILITY TO BUY
PRODUCTS THEY NEED AND WANT,
AND ALL AT THE SAME TIME
CAUSING A COST TO THE OVERALL
SYSTEM OF CREDIT AND JOBS IN
THIS COUNTRY.
THE ADDITIONAL COST TO THE CFPA
HAS ALREADY BEEN EXAMINED BY
OUTSID ORGANIZATIONS AND IS
SEEN TO HAVE A NEGATIVE
FOR THIS COUNTRY TO GROW
OURSELVES OUT OF THE ECONOMIC
MORASS THAT WE FIND OURSELVES
IN TODAY.
EXPERTS HAVE SAID, A
YET TO HEAR ANYONE FROM THE
OTHER SIDE OF THE AISLE REFUTE
THESE STUDIES, NOR FOR THAT
MATTER WHEN WE ASKED THE OTHER
SIDE OF THE AISLE EARLIER, THE GENTLEMAN FROM NORTH CAROLINA,
I BELIEVE, DO THEY HAVE ANY
STUDIES TO REFUTE THESE OR
PRESENT THE CASE THAT ACTUALLY
WOULD GO IN THE OPPOSITION
DIRECTION, THEY SAID NO, OR HAD
NO ANSWER, EXPERTS HAVE SHOWN
THAT T CFPA ALONE WOULD ADD A
COST OF CREDIT TO THE SYSTEM
BETWEEN 1.4 TO 1.4, ABOUT 1 1/2
PERCENTAGE POINTS TO THE COST
OF CREDIT IN THIS COUNTRY.
WHAT DOES THAT MEAN?
EVEN IN THE CASE OF REVERSE
MORTGAGES I GUESS IT WOULD
APPLY THAT YOU WOULD SAY THE
COST OF YOUR CREDIT IF YOU HAVE
A 6% LOAN WOULD GO UP TO AROUND
7%, 7.5%.
JUST THE ACT OF BORROWING WILL
BE MADE HARDER BECAUSE OF E
UNDERLYING BILL.
NOW WE SEE HERE WITH THIS
AMENDMENT THAT THE CFPA
OMNIPOTENT ENOUGH WITH THEIR
POWER TO REACH INTO BASICALLY
EVERY SINGLE CORNER OF THE
ECONOMY OF THIS CO
ARE GOING TO LET THEM GO EVEN A
LITTLE BIFURTHER.
I SAY ALL THAT WITH THE
UNDERSTACK THAT REVERSE
MORTGAGES SOMETIMES IN THE PAST
--NDERSTANDING THAT REVERSE
MORTGAGES SOMETIMES IN THE PAST
WITHIN CERTAIN CASES OF CAUSING
PROBLEMS FOR OUR SENIORS AND
THAT IS CERTAINLY SOMETH
THAT REGULATORS NEED TO AND
HAVE THE ABILITY TO TAKE A LOOK
AT.
ANSWER.
THIS -- WAS CRAFTED IN SUCH A
WAY THAT WOULD BROADEN THE CFPA
POWERS, HURT CREDIT, AND ONE
OTHER POINT ON THIS AS WELL,
WHEN YOU ARE HURTING THE CREDIT
MARKETS OF THIS COUNTRY, YOU
ARE ALSO HURTING THE
OPPORTUNITY TO GROW THIS
ECONOMY WITH REGARD TO JOBS.
I THINK THAT SAME STUDY AS WEL
GAVE US A NUMBER OF AROUND 4.3%
REDUCTION IN THE INCREASE OF JOBS.
WHAT DOES THAT MEAN TO YOU AND ME?
WITH UNEMPLOYMENT AROUND 10%,
THAT MEANS WE COULD LOOK AT AN
ADDITIONAL MILLION PEOPLE IN
COUNTRY WHO WOULD NOT BE ABLE
TO GET JOBS.
HOW DOES THAT HELP SENIORS?
SENIORS HAVE OTHER PEOPLE IN
THEIR FAMILIES WORKING, HOW
DOES IT HELP ANY SENIOR, HELP
ANYONE THIS COUNTRY IF WE ARE
GOING TO PUT MORE IMPEDIMENTS
AND ROADBLOCKS IN THE WAY TO
THIS COUNTRY GROWING AGAIN,
GETTING CREDIT DOWN AGAIN, AND
GETTING UNEMPLOYMENT BACK DOWN
FROM THE 10% THAT WE FIND
OURSELVES IN TODAY?
I STAND OPPOSED TO THIS
AMENDMENT AND OPPOSED TO
PUTTING ADDITIONAL POWERS IN
THE FEDERAL GOVERNMENT AND THE
CFPA AND WITHIN THE AUTHORITIES
THEY HAVE ALREADY.
I RESERVE THE BALANCE OF MY
TIME.
THE CHAIR: THE GENTLEMAN
THE GENTLEWOMAN FROM ILLINOIS IS RECOGNIZED.
MS. SCHAKOWSKY: MAY I INQUIRE
HOW MANY MINUTES I HAVE LEFT?
THE CHAIR: THE GENTLEWOMAN HAS
2 1/2 MINUTES
MS. SCHAKOWSKY: I WOULD LIKE TO
YIELD A MINUTE TO THE CHAIRMAN
OF THE COMMITTEE, BARNEY FRANK. THE CHAIR: THE GENTLEMAN FROM
MASSACHUSETTS IS RECOGNIZED FOR
ONE MINUTE.
MR. FRANK: MADAM CHAIR, WE KEEP
HEARING ABOUT THESE STUDIES.
THEY WERE COMMISSIONED BY
ORGANIZATIONS IDEOLOGICALLY
OPPOSED TO THIS AND
SURPRISE THEY HAVE GOTTEN BACK
THE ANSWERS THEY WANT.
I HAVEN'T SEEN THEM.
THEY ARE NOT WORTH ANYTHING.
THEY ARE SIMPLY QUANTIFICATIONS
OF IDEOLOGY WHICH ARE ENTITLED
TO NO WEIGHT.
I UNDERSTAND THAT THERE ARE
PEOPLE W DO NOT LIKE CONSUMER
REGULATION.
WHAT WE LEARN IS THAT IN ITS
ABSENCE ABUSES CAN PROLIFERATE
THAT BECOME SYSTEMIC PROBLEMS.
IT'S ESPECIALLY RELEVANT WHEN
WE ARE DEALING WITH THE ELDERLY.
WE KNOW THERE ARE PEOPLE WHO
ARE PREYIN
THERE ARE PEOPLE ELIGIBLE FOR
THIS PROGRAM IN THEIR 80'S WHO
HAVE LIVES EVER HARD WORK THAT
DID NOT INCLUDE SOPHISTICATED
INVOLVEMENT WITH FINANCIAL
INSTRUMENTS.
THERE HAVE BEEN PROBLEMS OF
ABUSE.
WE IN FACT ADOPTED I THINK
WITHOUT OPPOSITION A PIECE OF
LEGISLATION THAT SAID, CAN YOU
NOT BE THE ONE THAT SELLS
SOMEBODY REVERSE MORTGAGE AND
THEN BECOMES HIS OR HER
INVESTMENT ADVISOR BECAUSE OF
THE ABUSES.
PROTECTING THE ELDERLY AGAINST
ABUSE SHOULDN'T BE CONTROVERSIAL.
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED. THE GENTLEMAN FROM NEW JERSEY
IS RECOGNIZED.
MR. GARRETT: DOES THE
GENTLELADY HAVE OTHER -- I'LL RESERVE.
THE CHAIR: THE GENTLEMAN
RESERVES. THE GENTLEWOMAN FROM ILLINOIS
IS RECOGNIZED.
MADAM CHAIRMAN.
I YIELD NOW TO THE GENTLELADY
TO FINISH THE AMOUNT OF
REMAING TIME.
THE CHAIR:
NEVADA IS RECOGNIZED FOR THE
REMAING MINUTE AND A HALF.
MS. TITUS: THANK YOU, MADAM
CHAIRMAN.
EVERY DAY SENIORS ARE TARGETED
BY LENDING AGENCIES THRGH
MAILINGS, PHONE CALLS, AND TV
ADS OFFERING REVERSE MORTGAGES
WITH PROMISES OF FREE MONEY TO
FINAE TRIPS, NEW CARS, AND
GIFTS IN THEIR GOLDEN YEARS.
WHILE A REVERSE MORTGAGE MAY BE
AN APPROPRIATE PRODUCT FOR SOME
SENIORS, IT'S A COMPLEX
FINANCIAL INSTRUMENT WHICH IS
BEING AGGRESSIVELY MARKETED TO
OUR MOST VULNERABLE IN SOCIETY.
ACCORDINGLY, MANY SENIORS TODAY
FIND THEMSELVES IN FINANCIAL
HARDSHIP DUE TO UNFAIR AND
UNCLEAR AGREEMENTS ALONG WITH
EXCESSIVE FEES THAT COMES A
RESULT OF REVERSE MORTGAGES.
THEY HAVE LEARNED THE HARD WAY
THAT THE REALITY OF A REVERSE
MORTGAGE IS NOT ALWAYS AS
ADVERTISED AND NOW THEY FACE
SEVERE FINANCIAL CONSEQUENCES
IN WHAT IS SUPPOSED TO BE THEIR
GOLDEN YEARS.
THE AMENDMENT THAT WE ARE
OFFERING TODAY PROVIDES NEEDED
SENIORS BY REQUIRING THAT THE
NEW CONSUMER FINANCIAL
PROTECTION AGENCY OVERSEE THE
REVERSE MORTGAGE INDUSTRY TO
ENSURE SENIORS ARE T EXPOSED
TO UNFAIR AND DECEPTIVE PRACTICES.
PROTECTING OUR SENIORS FROM
UNFAIR AND UNCLEAR FINANCIAL
PRODUCTS IS LONG OVERDUE.
REVERSE MORTGAGES NEED TO BE
CLEARLY AND CLOSELY MONITORED
AND REGULATED IN AN EFFORT TO
ENSURE SENIORS DON'T LOSE THEIR
HOME AND EQUITY THAT THEY HAVE
BUILT UP THROUGH A LIFETIME OF
HARD WORK.
I'M CONFIDENT THAT THE
AMENDMENT WHICH HAS THE
ENDORSEMENT OF
APPROPRIATE FLEXIBILITY AND
PROTECTIONS FOR OUR SENIORS.
I WANT TO THANK MY
REPRESENTATIVES SCHAKOWSKY AND ALSO THE CHAIRMAN OF THE
COMMITTEE FOR WORKING WITH ME
ON THIS IMPORTANT
I URGE MY COLLEAGUES TO SUPPORT
THE AMENDMENT.
THE CHAIR: TIME HAS EXPIRED.
THE GENTLEMAN FROM NEW JERSEY
IS RECOGNIZED. MR. GARRETT: DOES THE
GENTLELADY HAVE ANY OTHER
SPEAKERS?
THE CHAIR: THE GENTLEWOMAN'S --
THE GENTLEWOMAN ILLINOIS
DOESN'T HAVE TIME
THE GENTLEMAN FROM NEW JERSEY IS RECOGNIZED.
MR. GARRETT: I THANK YOU.
I YIELD MYSELF 20 SECONDS AND
YIELD TO THE GENTLEMAN FROM
TEXAS MY REMAINING TIME. E CHAIR: THE GENTLEMAN IS
RECOGNIZED FOR 20 SECONDS.
MR. GARRETT: TO
COMMENT WITH REGARD TO OUR
STUDY WHICH HE SAID IS SIMPLY A
QUANTIFICATION OF IDEOLOGY,
WHENEVER HE HAS AN ISSUE LIKE
THAT, I THINK THAT IS AN
ABANDONMENT OF ORIGINALITY
BECAUSE OF ANY TIME WE HAVE A
STUDY OR WHAT HAVE YOU, HE
REFERS BACK TO IDEOLOGY.
WE WOULD ALWAYS ASK THE OTHER
SIDE OF THE AISLE, IDEOLOGICAL
OR OTHERWISE, WE WOULD BE HAPPY
TO SEE ANY STUDY TO SUPP
ANYTHING THAT'S IN THIS BILL
THAT WILL NOT HARM OUR ECONOMY
NOR CREATE HARDSHIPS FOR THE
CREATION OF JOBS OR CREATE
HARDSHIPS FOR CREATING INCREASES TO CREDIT.
WE WOULD LIKE IDEA LONLICAL OR
THE CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED.
MR. GARRETT: I YIELD THE
REMAINLING TIME TO CLOSE TO THE
GENTLEMAN FROM TEXAS, A MAN NOT
OF IDEOLOGY ALONE BUT A MAN OF
FACT
RIGHT SIDE OF THIS ISSUE, THE
GENTLEMAN FROM TEXAS
THE CHAIR: THE GENTL TEXAS IS RECOGNIZED FOR A
MINUTE AND A HALF.
.
MR. HENSARLING: SIMPLY BECAUSE
YOU ARE A SENIOR YOU SHOULDN'T
HAVE TO GIVE UP YOUR FREEDOM.
YOU SHOULDN'T HAVE TO GIVE U
YOUR ECONOMIC LIBERTY.
THERE ARE SO MANY REASONS TO
OPPOSE THE UNDERLYING LEGISLATION.
IT CREATES A PERMANENT WALL
STREET BAILOUT AUTHORITY.
AT A TIME WHEN THE ECONOMIC
POLICIES OF THIS CONGRESS, OF
THIS ADMINISTRATION HAVE PRODUCED THE HIGHEST
UNEMPLOYMENT RATE IN A
GENERATION, THEY PROPOSE
LEGISLATION THAT WILL MAKE
CREDIT MORE EXPENSIVE, LESS
AVAILABLE AND CRUSH JOBS.
BUT NOW WE HAVE AN AMENDMENT
THAT GOES TO INCREASE THE POWER
OF THE UNELECTED CZAR TO BAN,
TO BAN AND RATION CREDIT.
YOU KNOW, ULTIMATELY, AMERICAN
PEOPLE IN THE LAND OF THE FREE
OUGHT TO BE ABLE TBE FREE TO
CHOOSE THE FINANCIAL PRODUCTS
THAT THEY THINK THAT ARE BEST
FOR THEM.
THE WAY TO BEST PROTECT
AMERICAN CITIZENS IS WITH
COMPETIVE MARKETS THAT ARE
VIGOROUSLY ENFORCED FOR FRAUD
BUT NOT TAKE AWAY THEIR
ESSENTIAL FREEDOM.
QUIT PROTECTING A
THEMSELVES.
QUIT ASSAULTING THE ECONOMIC
LIBERTIES OF AMERICANS,
ESPECIALLY SENIORS, IN TOUGH
ECONOMIC TIMES WHO MAY NEED THE
MONEY TO SURVIVE.
WE SHOULD REJECT THIS
AMENDMENT, REJECT THE JOB LOSS,
REJECT THE BAILOUT, REJECT THE
ASSAULT ON LIBERTY.
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
ALL TIME HAVING EXPIRED, THE
QUESTION IS ON THE AMENDMENT
OFFERED BY THE GENTLEWOMAN FROM
ILLINOIS.
THOSE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR,
THE AYES HAVE IT.
THE AMENDMENT --
MR. HENSARLING: MADAM CHAIR.
THE CHAIR: THE GENTLEMAN FROM
TEXAS.
RECORDED VOTE.
THE CHAIR: PURSUANT TO CLAUSE 6
OF RULE 18, FURTHER PROCEEDINGS
ON THE AMENDMENT OFFERED BY THE
GENTLEWOMAN FROM ILLINOIS WILL
BE POSTPONED.
IT IS NOW IN ORDER TO CONSIDER
AMENDMENT NUMBER 33 PRINTED IN
HOUSE REPORT 111-370.
FOR WHAT PURPOSE DOES THE
GENTLEWOMAN FROM OHIO RISE?
AN AMENDMENT AT THE DESK.
THE CHAIR: THE CLERK WILL
DESIGNATE THE AMENDMENT.
THE CLERK: AMENDMENT NUMBER 33
PRINTED IN HOUSE REPORT 111-370
--
MS. KILROY: I ASK UNANIMOUS
CONSENT --
THE CHAIR: PURSUANT TO HOUSE
FROM OHIO, MS. KILROY, AND A
MEMBER OPPOSED, EACH WILL
CONTROL FIVE MINUTES.
THE CHAIR RECOGNIZES THE
GENTLEWOMAN FROM ILLINOIS.
MS. KILROY: THANK YOU, MADAM
CHAIR.
I YIELD MYSELF SUCH TIME AS I
MA
IT'S BEEN A LITTLE OVER A YEAR
SINCE THE WAY THE PREDATORY
LENDING, CREDIT DEFAULT SWAPS
FINALLY GAVE WAY.
AND THE AMECAN TAXPAYER WAS
FORCED TO BAIL OUT WALL STREET.
AND THE SAME FINANCIAL
INSTITUTIONS THAT SENT OUR
NATION'S ECONOMY INTO THE WORSE CRISIS SINCE THE GREAT
DEPRESSION.
THE GREED AND RECKLESSNESS OF
WALL STRE
STREET DEARLY.
MILLIONS OF JOBS, HARD-EARNED
LIFE SAVINGS WERE LOST.
AND TODAY, AMERICAN FAMILIES
ARE STILL RECOVERING.
WE KNOW WE NEED TO TAKE ACTION
SO THAT AMERICAN TAXPAYERS ARE
NOT PUT IN THAT POSITION AGAIN.
AND OVER THE PAST YEAR,
CHAIRMAN FRANK HAS HELD
COUNTLESS HEARINGS, MARKUPS AND
MEETINGS TO HELP BRING TO THE
FLOOR TODAY THE MOST SWEEPING
REFORM OF OUR NATION'S
FINANCIAL REGULATORY SYSTEM
SINCE THE NEW DEAL.
AND HE'S DONE SO IN A
TRANSPARENT AND EQUITYIBLE
MANNER.
H.R. 4173, THE WALL STREET
REFORM AND CONSUMER PROTECTION
ACT, WILL RESTORE OUR NATION'S
FINANCIAL SYSTEM AND PROVIDE
AMERICANS THE CONFIDENCE THAT
THERE ARE RULES IN PLACE THAT
WORK FOR THEM AND PROTECT THEM,
NOT PROTECT THE BIG BANKS AND
HEDGE FUNDS AND MORTGAGE
INDUSTRY.
THERE WILL BE THE OVERSIGHT,
THE REGULATION THAT SHOULD KEEP
THIS KIND OF CRISIS FROM
HAPPENING AGAIN, THAT SHOULD
SEE AN END TO THE RISKY
PRACTICES THAT LED TO THE
TAXPAYER BAILOUT OF WALL
STREET.
BUT IT WILL ALSO THE END OF TOO
BILL TO FAIL PROBLEM BY
IMPLEMENTING A MECHANISM FOR THE ORDERLY AND CONTROLLED
LIQUIDATION OF A FAILED FINANCIAL INSTITUTION.
AND IT'S VERY CLEAR THAT THIS
IS GOING TO BE FUNDED BY THE
FINANCIAL INSTITUTIONS
THEMSELVES, NOT BY ANOTHER
BAILOUT, NOT BY THE TAXPAYERS,
NO MORE TARP.
BUT SOMETIMES INCREASED CLARITY
AND ADDED EMPHASIS IS CALLED
FOR.
BY ADDING ONE WORD, ONLY, TO
THE LANGUAGE REGARDING THE USE
OF ASSESSMENTS, WE PROMISE AND
WE REASSURE OUR TAXPAYERS THAT
THEY WILL NOT BE BAILING OUT
WALL STREET AGAIN.
THE DISILLUSION FUND --
DISSOLUTION FUND WILL ONLY BE
FUNDED BY THOSE FINANCIAL
INSTITUTIONS FROM THEIR
ASSESSMENTS, NOT OUR
HARDWORKINTAXPAYERS AND OUR
CITIES AND TOWNS AND FARMS.
MADAM CHAIR, I URGE PASSAGE OF
THIS AMENDMENT AND YIE BACK.
THE CHAIR: DOES GENTLEWOMAN
YIELD OR RESERVE?
MS. KILROY: I RESERVE MY TIME.
THE CHAIR: THE GENTLEWOMAN
RESERVES. GENTLEMAN FROM TEXAS RISE?
MR. HENSARLING: TO CLAIM TIME
IN OPPOSITION, MADAM CHAIR.
THE CHAIR: E GENTLEMAN IS
RECOGNIZED FOR FIVE MINUTES.
MR. HENSARLING: I YIELD MYSELF
SUCH TIME AS I MAY CONSUME.
WELLMADAM CHAIR,
HEARTENED TO HEAR THE
GENTLELADY FROM OHIO TO SAY,
QUOTE, NO MORE TARPS.
SHE'LL HAVE AN OPPORTUNITY TO VOTE THAT WAY LATER THIS
AFTERNOON.
I HOPE THAT MANY OF HER
COLLEAGUES ON THAT SIDE OF THE
AISLE WILL FOLLOW HER EXAMPLE
AND PUT THEIR VOTES WHERE THEIR
SENTIMENT IS BECAUSE INDEED THE
MOTION TO RECOMMIT TODAY WILL
BE TO END THE TARPROGRAM.
SO I LOOK FORWARD TO HAVING
GREAT SUPPORT ON THAT SIDE OF
THE AISLE FOR THAT MOTION TO
RECOMMIT.
THE PARTICULAR AMENDMENT BEFORE
US, THOUGH, IS ONE THAT
CONTINUES TO TRY TO PERPETUATE
THE MYTH THAT SOMEHOW TAXPAYERS
WILL NOT BE CALLED UPON FOR A
BAILOUT.
WHY DO YOU HAVE A BAILOUT FUND?
YOU HAVE A BAILOUT FUND TO BAIL
SOMEBODY OUT.
AND IF FOR SOME REASON YOU
ACTUALLY THOUGHT THAT TAXPAYERS
WILL NOT BE ON THE HOOK, WELL,
$150 BILLION IMPOSED UPON THOSE
WHO FORM CAPITAL, CAPITAL
INTERIMMEDIATEARIES ARE GOING
TO MAKE CAPITAL MORE EXPENSIVE,
CHOKE OFF MORE CREDIT TO SMALL
BUSINESSES AND INCREASE THE
DOUBLE DIGIT UNEMPLOYMENT RATE
THS ADMINISTRATION AND THIS
CONGRESS' ECONOMIC POLICIES.
LOST?
WE NEED TO OPEN UP CREDIT, NOT
CLOSE CREDIT.
SECOND OF ALL, THE PEOPLE WHO
ARE TELLING US, DON'T WORRY,
MR. TAXPAYER, MR. TAXPAYER, YOU
ARE NEVER GOING TO BE CALLED
UPON TO BAIL OUT THESE INSTITUTIONS YET AGAIN.
WE HAVE SOLVED THAT PROBLEM.
MADAM CHAIR, THESE ARE THE VERY
SAME PEOPLE THAT TOLD US THAT
THE TAXPAYERS WOULD NEVER BE
CALLED TO BAIL OUT THE
GOVERNMENT SPONSORED ENTERPRISES, AND YET $1
TRILLION OF TAXPAYERS EXPOSURE
LIABILITY LATER THEY WERE
WRONG.
THEY TOLD US ABOUT THAT SOCIAL SECURITY GOING BANKRUPT,
MEDICARE GOING BANKRUPT, NATIONAL FEDERAL FLOOD
INSURANCE PROGRAM, NEVER GOING
TO NEED NATIONAL TAXPAYER
PROBLEM, INSOLVENT.
AND THE LIST GOES ON AND ON AND
ON.
NOW, MADAM CHAIR, I KNOW THEY
MEAN WELL.
I KNOW THEY BELIEVE IT WHEN
THEY SAY IT, BUT AS HISTORY AS
MY GUIDE, IT'S NOT A CREDIBLE
STATEMENT FOR THOSE ON THE
OTHER SIDE OF THE AISLE TO
MAKE.
SO WHAT ARE WE LEFT WITH?
WE ARE LEFT WITH A PERPETUAL
WALL STREET BAILOUT BILL.
WE ARE LEFT WITH A BILL THAT
WILL CRUSH JOB CREATION AT A
TIME WHEN OUR NATION NEEDS TO
BE CREATING JOBS.
WE HAVE A BILL THAT ASSAULTS THE FUNDAMENTAL ECONOMIC
LIBERTIES OF EVERY AMERICAN
CITIZEN WHO NOW HAS TO RECEIVE
THE PERMISSION OF THEIR GOVERNMENT BEFORE THEY CAN
FUTURE A CREDIT CARD IN THEIR
WALLET OR GET A MORTGAGE FOR
THEIR HOME.
THE BEST WAY TO END TARP IS TO
END TARP.
AND EVERY MEMBER OF THIS BODY
WILL HAVE THE OPPORTUNITY TO DO
LATER THIS AFTERON.
I RESERVE THE BALANCE OF MY
TIME.
RESERVES.
THE GENTLEWOMAN FROM OHIO IS
RECOGNIZED.
MS. KILROY: I YIELD TWO MINUTES
TO THE CHAIRMAN OF OUR
COMMITTEE, BARNEY FRANK.
TH
MASSACHUSETTS IS RECOGNIZED FOR
TWO MINUTES.
MR. FRANK: THE GENTLEMAN FROM
TEXAS'S INSTINCT BE KNOWN
OVERCOMES THAT SO HE HAS TO
NEGATIVE THINGS.
AMONG THEM, THOUGH, THE MOST
OUTLA
EFFORT TO BLAME UNEMPLOYMENT ON
PRESIDENT OBAMA.
PRESIDENT OBAMA INHERITED FROM
PRESIDENT BUSH A VERY SERIOUS
RECESSION.
IT TURNS OUT NOW THE WORST
SINCE THE GREAT DEPRESSION.
AND IT WAS BEGUN BY THOSE WHO
CERTIFIED THE NONPARTISAN
ENTITIES THAT DO THAT.
IN DECEMBER OF 2007 AFTER MANY
YEARS OF REPUBLICAN RULE, BOTH
IN THE HOUSE AND SENATE AND IN
THE WHITE HOUSE.
UNEMPLOYMENT IS DECREASING NOW,
AND YOU DON'T GO FROM VERY BAD
TO PERFECT.
BUT THIS EFFORT TO EVADE
RESPONSIBILITY FOR THE
REPUBLICAN POLICIES THAT CAUSED
THIS RECESSION IS, AS I SAID,
ONE OF THE GREAT EXAMPLES OF BLAME SHIFTING.
I HAVE
SUFFERED A GREAT DISEASE
OUTBREAK ON JANUARY 23, 2001.
MASS AMNESIA HIT THE RE
PARTY.
THE MASSIVE DEFICIT THAT
BROUGHT ABOUT OUR FINANCIAL
COLLAPSE.
THE MILLIONS OF JOBS LOSS,
ADMINISTRATION WITH THE WORST
JOB RECORD RECENTLY IS THE BUSH
ADMINISTRATION.
AND THE OBAMA RECOVERY IS
SLOWER THAN I WISH IT WOULD BE,
BUT IT IS CURRENTLY ON THE
UPSWING.
SECONDLY, THE
HIS PARTISAN POINTS WILL LASH
OUT AT ANYTHING.
SOCIAL SECURITY, HE ANNOUNCES,
IS GOING BANKRUPT.
SOCIAL SECURITY, CREDITED WITH
ALL THE MONEY PAID IN, IS SOUND
FOR ANOTHER 25 YEARS OR MORE.
FRIGHTENING ALL THE PEOPLE BY
THE FALSE CLAIM THAT SOCIAL
SECURITY IS GOING BANKRUPT IS
AN EXAMPLE OF PARTISANSHIP ON A
RIOT.
WHAT WE HAVE IS THIS RELUCTANCE
TO ACCEPT THE FACT THAT WE HAVE
LANGUAGE THAT SAYS NOTHING HERE
CAN GO TO PERPETUATE TH
INSTITUTIONS.
IT'S RIGHT.
FANNIE MAE AND FREDDIE MAC,
WHICH THE REPUBLICAN PARTY -- I
MS. KILROY: I
TO THE GENTLEMAN FROM
MASSACHUSETTS.
THE CHAIR: THE GENTLELADY HAS
30 SECONDS REMAING.
MR. FRANK: IN THE 12 YEARS OF
CONGRESSIONAL REPUBLICAN RULE,
THEY DIDN'T DO ANYTHING ABOUT
FANNIE AND FREDDIE.
WE DID PASS A BILL IN 2007.
IT WAS TOO LATE.
BUT WE HAVE LANGUAGE HERE THAT
DID NOT PREVIOUSLY EXIST THAT
BANS THE USE OF TAXPAYER FUNDS,
THAT BANS THE USE OF ANY FUNDS
TO KEEP AN INSTITUTION GOING.
SO, YES, UNLIKTHE REPUBLICANS
WHO D NOTHING ABOUT FANNIE
AND FREDDIE IN THEIR 12 YEARS,
NEVER PASSED A PIECE OF
LEGISLATION, WE PASSED A PIECE
OF LEGISLATION AND IT WAS TOO
LATE BUT WE LEARNED FROM IT AND
THERE IS BINDING LANGUAGE HERE
THAT CONTRADICTS EVERYTHING
THAT THE GENTLEMAN FROM TEXAS
SAYS BUT HE'S NOT EASILY SAID.
THE CHAIR: THE GE HAS EXPIRED.
THE GENTLEMAN FROM TEXAS IS
RECOGNIZED.
THE GENTLEMAN HAS TWO MINUTES REMAINING.
MR. HENSARLING: MADAM CHAIR,
HAS ALL TIME EXPIRED ON THIS?
THE CHAIR: ALL TIME HAS EXPIRED
ON THE OTHER SIDE.
THE GENTLEMAN HAS TWO MINUTES
REMAINING.
MR. HENSARLING: THANK YOU, MADAM SPEAKER.
IT'S MASS NESIA HAS AFFECTED
THAT SIDE OF THE AISLE TOO.
I CURRENTLY HE REMIND T
GENTLEMAN FROM THE FINANCIAL
SERVICES COMMITTEE SINCE HE
POINTS OUT 2007 THE YEAR THAT
THE FINANCIAL CRISIS STARTED,
IT HAPPE TO COINSIDE THE YEAR
THAT THE DEMOCRATS TOOK CONTROL
OF THE UNITED STATES CONGRESS
AS WELL.
FRANK WILL THE GENTLEMAN YIELD?
MR. HENSARLING: I'D BE HAPPY TO YIELD.
MR. FRANK: AS HE ADVANCES THE
ARGUMENT BECAUSE THE DEMOCRATS
TOOK OVER IN 2007 THAT THAT WAS
WHY WE HAD A RECESSION?
MR. HENSARLING: RECLAIMING MY
TIME.
RECLAIMING MY TIME.
I'M SIMPLY POINTING OUT, IF THE
GENTLEMAN IS TRYING TO MAKE
ASSOCIATIONS, OR MAKE AN
ASSOCIATION TO ME AS WELL, WHAT
I AM ASSERTING IS THAT THE
ECONOMIC POLICIESITHER
ENACTEDR THREATENED BY THIS
CONGRESS OR THIS ADMINISTRATION
IS KEEPING A RECOVERY FROM
HAPPENING.
THIS IS AN ECONOMY THAT THROUGH
ANY HISTORIC STANDARD
WHATSOEVER SHOULD HAVE ALREADY
RECOVERED.
BUT FIRST WE HAVE THE STIMULUS
PROGRAM WHICH WE WERE TOLD
WOULD KEEP US AT 8%
UNEMPLOYMENT.
NOW WE KNOW WE HAVE DOUBLE
DIGIT UNEMPLOYMENT, 3.6 MILLION
JOBS LOST SINCE THE STIMULUS PROGRAM WAS PASSED.
WE HAVE THE $600 BILLION ENERGY
TAX PASSED IN THE HOUSE HANGING
OVER THE ECONOMY.
WE HAVE THE OVER $1 TRILLION
NATIONALIZATION OFOUR HEALTH
CARE SYSTEM HANGING OVER THE
ECONOMY.
AND NOW THIS IS THE FOURTH LEG
OF THE STOOL.
AND THAT IS A PERPETUAL WALL
STREET BAILOUT AND FURTHER JOB
LOSS THROUGH CREDIT CONTRTION
ACT OF 2009, THE FOURTH LEG OF
THE ECONOMIC POLICY THAT ARE
PREVENTING JOBS FROM BEING
CREATED.
WHAT DO WE HAVE TO SHOW FOR THE
ECONOMIC POLL SIGNIFICANCE OF
THIS ADMINISTRATION?
-- POLICIES OF THIS
ADMINISTRATION?
THAT IS THE FIRST $1 TRILLION
DEFICIT IN OUR NATION'S
HISTORY.
WE HAVE AN ECONOMIC PLAN THAT
WILL TRIPLE THE NATIONAL DEBT.
NOTHING WOULD DO MORE TO CREATE
DEFEAT -- LET TARP EXPIRE --
THE CHAIR: THE GENTLEMAN'S TIME
HAS EXPIRED.
ALL TIME HAVING EXPIRED -- THE
GENTLEMAN'S TIME HAS EXPIRED.
ALL TIME HAVING EXPIRED, THE
QUESTION IS ON THE AMENDMENT
OFFERED BY THE GENTLEWOMAN FROM OHIO, MS. KILROY.
THOSE IN FAVOR SAY AYE.
THOSE OPPOSED, NO.
IN THE OPINION OF THE CHAIR, THE AYES HAVE IT.
THE AMENDMENT IS AGREED TO.
.
WILL RISE
INFORMALLY TO
THE SPEAKER PRO TEMPORE: THE
HOUSE WILL BE IN ORDER.
THE CHAIR WILL RECEIVE A MESSAGE.
THE MESSENGER: MR. SPEAKER, A
MESSAGE FROM THE SENATE.
THE
THE SPEAKER PRO TEMPORE: MADAM
SECRETARY. THE SECRETARY: I HAVE BEEN
DIRECTED BY THE SENATE TO
INFORM THE HOUSE THAT THE
SENATE HAS PASSED WITHOUT
AMENDMENT H.R. 4218, AN ACT
CITED AS THE NO SOCIAL SECURITY
BENEFITS FOR PRISONERS AC
2009.
THE SPEAKER PRO TEMPORE: THE
COMMITTEE WILL RESUME ITS
SITTING.
THE CHAIR: THE COMMITTEE WILL
BE IN ORDER.
PURSUANT TO CLAUSE 6 OF RULE
18, PROCEEDINGS WILL NOW RESUME
ON THOSE AMENDMENTS PRINTED IN
HOUSE REPORT 111-370 ON WHICH
FURTHER PROCEEDINGS WERE
POSTPONED THE FOLLOWING
ORDER.
AMENDMENT NUMBER 12 BY MR.
KANJORSKI OF PENNSYLVANIA.
AMENDMENT NUMBER 14 BY MR.
MCCARTHY OF CALIFORNIA.
AMENDMENT NUMBER 16 BY MR.
PETERS OF MICHIGAN.
THE CHAIR WILL REDUCE TO FIVE
MINUTES THE TIME FOR ANY
ELECTRONIC VOTE VOTE
VOTE IN THE SERIES.
THE
REQUEST FOR RECORDED VOTE ON
AMENDMENT NUMBER 12 PRINTED IN
HOUSE
BY T
PENNSYLVANIA, MR. CAN JUROR SKIRKS ON WHICH FURTHER
PROCEEDINGS WERE POSTPONED AND
ON WHICH THE AYES PREVAILED BY
VOICE VOTE.
THE CLERK WILL REDESIGNATE TH
AMENDMENT.
THE CLERK: AMENDMENT NUMBER 12,
PRINTED IN HOUSE REPORT NUMBER
111-370, OFFERED
KANJORSKI OF PENNSYLVANIA.
THE CHAIR: A RECORDED VOTE BEEN REQUESTED.
THOSE IN SUPPORT OF THE REQUEST
FOR RECORDED VOTE WILL
BE COUNTED.
A SUFFICIENT NUMBER HAVING ARISEN, A RECORDED VOTE IS
ORDERED. MEMBERS WILL RECORD THEIR VOTES
BY ELECTRONIC DEVICE.