1 00:00:00,000 --> 00:00:00,000 starttime 1260540042.88753 2 00:00:00,001 --> 00:00:01,000 AS YOU CAN 3 00:00:01,001 --> 00:00:02,000 ON THEIR FINANCIAL OVERHAUL 4 00:00:02,001 --> 00:00:04,000 BILL. 5 00:00:04,001 --> 00:00:05,000 WE APPRECIATE YOUR BEING WITH 6 00:00:05,001 --> 00:00:08,000 US, ENJOY THE REST OF YOUR DAY. 7 00:00:08,001 --> 00:00:09,000 THE SPEAKER PRO TEMPORE: THE 8 00:00:09,001 --> 00:00:11,000 HOUSE WILL BE IN ORDER. 9 00:00:11,001 --> 00:00:13,000 THE CHAIR LAYS BEFORE THE HOUSE A COMMUNICATION FROM THE 10 00:00:13,001 --> 00:00:20,000 SPEAKER. 11 00:00:20,001 --> 00:00:21,000 WASHINGTON, D.C., DECBER 11, 12 00:00:21,001 --> 00:00:22,000 2009. 13 00:00:22,001 --> 00:00:24,000 I HEREBY APPOINT THE HONORABLE 14 00:00:24,001 --> 00:00:25,000 DONNA F. EDWARDS TO ACT AS 15 00:00:25,001 --> 00:00:26,000 SPEAKER PRO TEMPORE ON THIS 16 00:00:26,001 --> 00:00:28,000 DAY. 17 00:00:28,001 --> 00:00:29,000 SIGNED, NANCY 18 00:00:29,001 --> 00:00:32,000 OF THE HOUSE OF 19 00:00:32,001 --> 00:00:34,000 REPRESENTATIVES. THE SPEAKER PRO TEMPORE: THE 20 00:00:34,001 --> 00:00:37,000 PRAYER WILL BE OFFERED BY OUR 21 00:00:37,001 --> 00:00:40,000 CHAPLAIN, FATHER COUGHLIN. 22 00:00:40,001 --> 00:00:43,000 CHAPLAIN COUGHLIN: I 23 00:00:43,001 --> 00:00:46,000 YOU, O LORD, AND YOU STOOPED 24 00:00:46,001 --> 00:00:49,000 YOU HEARD MY CRY AND DREW ME 25 00:00:49,001 --> 00:00:50,000 FROM THE DEADLY PIT FROM THIS 26 00:00:50,001 --> 00:00:53,000 CLAY. 27 00:00:53,001 --> 00:00:55,000 YOU SET MY FEET UPON SOLID ROCK 28 00:00:55,001 --> 00:00:58,000 AND HELPED ME MAKE MY FIRST 29 00:00:58,001 --> 00:00:59,000 STEPS INTO THE LIGHT OF A NEW 30 00:00:59,001 --> 00:01:01,000 DAY. 31 00:01:01,001 --> 00:01:06,000 YOU PUT A NEW SONG INTO MY 32 00:01:06,001 --> 00:01:08,000 MOUTH, AND FROM THE LORD, GOD, I OFFERED YOU 33 00:01:08,001 --> 00:01:13,000 PRAISE. 34 00:01:13,001 --> 00:01:15,000 AMEN. 35 00:01:15,001 --> 00:01:17,000 CHAIR HAS EXAMINED THE JOURNAL 36 00:01:17,001 --> 00:01:18,000 OF THE LAST DAY'S P 37 00:01:18,001 --> 00:01:19,000 AND ANNOUNCES TO THE HOUSE HER 38 00:01:19,001 --> 00:01:21,000 APPROVAL THEREOF. 39 00:01:21,001 --> 00:01:23,000 PURSUANT TO CLAUSE 1 OF 40 00:01:23,001 --> 00:01:25,000 THE JOURNAL STANDS APPROVED. 41 00:01:25,001 --> 00:01:27,000 FOR WHAT PURPOSE DOES THE GENTLEMAN FROM 42 00:01:27,001 --> 00:01:28,000 RECOGNITION? 43 00:01:28,001 --> 00:01:29,000 >> MADAM SPEAKER, PURSUANT TO 44 00:01:29,001 --> 00:01:31,000 CLAUSE 1 OF RULE 1, I DEMAND A 45 00:01:31,001 --> 00:01:32,000 VOTE ON THE SPEAKER'S APPROVAL 46 00:01:32,001 --> 00:01:34,000 OF THE JOURNAL. 47 00:01:34,001 --> 00:01:35,000 THE SPEAKER PRO TEMPORE: THE 48 00:01:35,001 --> 00:01:36,000 QUESTION IS ON AGREEING TO THE 49 00:01:36,001 --> 00:01:37,000 SPEAKER'S APPROVAL OF THE 50 00:01:37,001 --> 00:01:40,000 JOURNAL. 51 00:01:40,001 --> 00:01:41,000 THOSE IN FAVOR, PLEASE SAY 52 00:01:41,001 --> 00:01:43,000 THOSE OPPOSED, PLEASE SAY NO. 53 00:01:43,001 --> 00:01:45,000 THE AYES HAVE IT. 54 00:01:45,001 --> 00:01:48,000 THE JOURNAL STANDS APPROVED. 55 00:01:48,001 --> 00:01:49,000 MR. KLEIN: MADAM SPEAKER, 56 00:01:49,001 --> 00:01:50,000 OBJECT TO THE VOTE ON THE 57 00:01:50,001 --> 00:01:51,000 GROUNDS THAT A QUORUM IS NOT 58 00:01:51,001 --> 00:01:52,000 PRESENT AND I MAKE A POINT OF 59 00:01:52,001 --> 00:01:53,000 ORDER THAT A QUORUM IS NOT 60 00:01:53,001 --> 00:01:55,000 PRESENT. 61 00:01:55,001 --> 00:01:56,000 THE SPEAKER PRO TEMPORE: 62 00:01:56,001 --> 00:01:57,000 PURSUANT TO CLAUSE 8 OF RULE 63 00:01:57,001 --> 00:01:59,000 20, FURTHER PROCEEDINGS ON THE 64 00:01:59,001 --> 00:02:01,000 QUESTION ARE POSTPONED. 65 00:02:01,001 --> 00:02:03,000 THE PLEDGE OF ALLEGIANCE WILL 66 00:02:03,001 --> 00:02:08,000 BE LED BY THE GENTLEMAN FROM 67 00:02:08,001 --> 00:02:09,000 MR. LANCE: I PLEDGE ALLEGIANCE 68 00:02:09,001 --> 00:02:10,000 TO THE FLAG OF THE UNITED 69 00:02:10,001 --> 00:02:11,000 STATES OF AMERICA AND TO THE 70 00:02:11,001 --> 00:02:15,000 REPUBLIC FOR WHICH IT STA 71 00:02:15,001 --> 00:02:16,000 ONE NATION UNDER GOD, 72 00:02:16,001 --> 00:02:24,000 INDIVISIBLE, WITH LIBERTY AND 73 00:02:24,001 --> 00:02:25,000 JUSTICE FO 74 00:02:25,001 --> 00:02:27,000 THE 75 00:02:27,001 --> 00:02:28,000 CHAIR WILL ENTERTAIN UP TO FIVE 76 00:02:28,001 --> 00:02:29,000 REQUESTS FOR ONE-MINUTE 77 00:02:29,001 --> 00:02:31,000 SPEECHES ON EACH SIDE OF THE 78 00:02:31,001 --> 00:02:33,000 AISLE. FOR WHAT PURPOSE DOES THE 79 00:02:33,001 --> 00:02:35,000 GENTLEMAN FROM OHIO RISE? 80 00:02:35,001 --> 00:02:37,000 MR. KUCINICH: GOOD MORNING, 81 00:02:37,001 --> 00:02:38,000 MADAM SPEAKER. 82 00:02:38,001 --> 00:02:39,000 I ASK PERMISS 83 00:02:39,001 --> 00:02:40,000 HOUSE FOR ONE 84 00:02:40,001 --> 00:02:42,000 THE SPEAKER PRO TEMPORE: 85 00:02:42,001 --> 00:02:43,000 WITHOUT OBJECTION, THE 86 00:02:43,001 --> 00:02:45,000 GENTLEMAN IS RECOGNIZED FOR ONE 87 00:02:45,001 --> 00:02:47,000 MR. KUCINICH: YESTERDAY, OUR 88 00:02:47,001 --> 00:02:48,000 PRESIDENT MUSED ABOUT THE 89 00:02:48,001 --> 00:02:49,000 INEVIDENTIBILITY OF WAR, WAR'S 90 00:02:49,001 --> 00:02:51,000 INSTRUMENTALITY OF WAR AND 91 00:02:51,001 --> 00:02:52,000 PEACE. 92 00:02:52,001 --> 00:02:53,000 IT'S IMPORTANT TO REFLECT ON 93 00:02:53,001 --> 00:02:54,000 HIS WORDS BECAUSE ONCE 94 00:02:54,001 --> 00:02:56,000 REBELIEVE IN THE 95 00:02:56,001 --> 00:02:58,000 INEVIDENTIBILITY OF WAR, WAR BECOMES A SELF-FULF 96 00:02:58,001 --> 00:02:59,000 PROPHECY. 97 00:02:59,001 --> 00:03:02,000 ONCE WE'RE COMMITTED TO WAR'S 98 00:03:02,001 --> 00:03:05,000 INSTRUMENTALITY AND PEACE WE 99 00:03:05,001 --> 00:03:07,000 BEGIN THE ORWELLIAN JOURNEY 100 00:03:07,001 --> 00:03:11,000 WHERE WAR IS PEACE, WHERE THE 101 00:03:11,001 --> 00:03:13,000 MOMENTUM OF WAR OVERWHELMS WAR 102 00:03:13,001 --> 00:03:16,000 FOR PEACE. 103 00:03:16,001 --> 00:03:18,000 WE CAN EASILY LEGIT MATE THE 104 00:03:18,001 --> 00:03:20,000 WHOLE SLAUGHTER OF INNOCENCE. 105 00:03:20,001 --> 00:03:21,000 THE WAR AGAINST IRAQ WAS BASED 106 00:03:21,001 --> 00:03:23,000 ON LIES. 107 00:03:23,001 --> 00:03:28,000 AND THE WARS IN AFGHANISTAN AND 108 00:03:28,001 --> 00:03:29,000 PAKISTAN WAS BASED ON FLAWED 109 00:03:29,001 --> 00:03:31,000 DOCUMENTS. 110 00:03:31,001 --> 00:03:32,000 SOMETIMES IT'S JUST WAR. 111 00:03:32,001 --> 00:03:34,000 AND OUR ABILITY TO RETHINK THE 112 00:03:34,001 --> 00:03:35,000 TERMS OF OUR EXISTENCE, TO 113 00:03:35,001 --> 00:03:37,000 EXPLORE THE POSSIBILITY OF 114 00:03:37,001 --> 00:03:40,000 PEACE WITHOUT WAR MAY WELL 115 00:03:40,001 --> 00:03:44,000 DETERMINE W 116 00:03:44,001 --> 00:03:46,000 WAR ENDS US. 117 00:03:46,001 --> 00:03:47,000 THE SPEAKER PRO TEMPORE: THE 118 00:03:47,001 --> 00:03:48,000 GENTLEMAN'S 119 00:03:48,001 --> 00:03:49,000 FOR WHAT PURPOSE DOES THE 120 00:03:49,001 --> 00:03:50,000 GENTLE 121 00:03:50,001 --> 00:03:52,000 MR. LANCE: TO ADDRESS THE HOUSE 122 00:03:52,001 --> 00:03:53,000 FOR ONE MINUTE. 123 00:03:53,001 --> 00:03:55,000 THE SPEAKER PRO TEMPORE: 124 00:03:55,001 --> 00:03:56,000 WITHOUT OBJECTION, THE 125 00:03:56,001 --> 00:03:57,000 GENTLEMAN IS RECOGNIZED FOR ONE 126 00:03:57,001 --> 00:03:58,000 MINUTE. 127 00:03:58,001 --> 00:04:00,000 MR. LANCE: MADAM SPEAKER, I 128 00:04:00,001 --> 00:04:01,000 RISE TODAY TO CONGRATULATE THE 129 00:04:01,001 --> 00:04:02,000 SUMMIT HILLTOPPERS WHO CAPTURED 130 00:04:02,001 --> 00:04:04,000 THE NEW JERSEY GROUP II, NORTH 131 00:04:04,001 --> 00:04:09,000 II STATE SECTIONAL FOOTBA 132 00:04:09,001 --> 00:04:10,000 TITLE ON DECEMBER 3 AT GIANTS 133 00:04:10,001 --> 00:04:12,000 STADIUM. 134 00:04:12,001 --> 00:04:14,000 COACHED BY JOHN, THE 135 00:04:14,001 --> 00:04:19,000 HILLTOPPERS WON A 28-19 VICTORY 136 00:04:19,001 --> 00:04:24,000 ON OFFENSE, THE HILLTOPPERS 137 00:04:24,001 --> 00:04:25,000 WERE LED BY THE QUARTERBACK AND 138 00:04:25,001 --> 00:04:27,000 RUNNING BACK. 139 00:04:27,001 --> 00:04:29,000 FOR THE GAME, THE RUNNING BACK 140 00:04:29,001 --> 00:04:31,000 RAN FOR 119 YARDS WHILE 141 00:04:31,001 --> 00:04:34,000 COMPLETING SIX PASS ATTEMPTS 142 00:04:34,001 --> 00:04:36,000 FOR 134 YARDS. 143 00:04:36,001 --> 00:04:38,000 REYES FINISHED WITH 167 YARDS 144 00:04:38,001 --> 00:04:40,000 ON THE GROUND AND TWO 145 00:04:40,001 --> 00:04:43,000 TOUCHDOWNS ON 16 CARRIESES. 146 00:04:43,001 --> 00:04:47,000 THE SUMMIT DEFENSE WAS LED BY 147 00:04:47,001 --> 00:04:50,000 MICHAEL STEINBERG, MIKE WATTS, 148 00:04:50,001 --> 00:04:53,000 RYAN O'MALI, DANNY FEENEY, HELD 149 00:04:53,001 --> 00:04:55,000 THE ORANGE TO JUST 19 POINTS. 150 00:04:55,001 --> 00:04:56,000 I ASK ALL OF MY COLLEAGS TO 151 00:04:56,001 --> 00:04:58,000 JOIN ME IN CONGRATULATING THE 152 00:04:58,001 --> 00:05:00,000 COACH AND THE ENTIRE SUMMIT 153 00:05:00,001 --> 00:05:02,000 HILLTOPPERS FOOTBALL TEAM FOR 154 00:05:02,001 --> 00:05:03,000 THEIR VICTORY OVER ARE ORANGE 155 00:05:03,001 --> 00:05:04,000 TO WIN THE STATE SECTIONAL 156 00:05:04,001 --> 00:05:06,000 TITLE. 157 00:05:06,001 --> 00:05:07,000 THANK YOU, MADAM SPEAKER. 158 00:05:07,001 --> 00:05:08,000 THE SPEAKER PRO TEMPORE: THE 159 00:05:08,001 --> 00:05:10,000 GENTLEMAN'S TIME HAS EXPIRED. 160 00:05:10,001 --> 00:05:13,000 FOR WHAT PURPOSE DOES THE 161 00:05:13,001 --> 00:05:14,000 GENTLEMAN FROM WASHINGTON RISE? 162 00:05:14,001 --> 00:05:15,000 CONSENT TO 163 00:05:15,001 --> 00:05:17,000 FORNE MINUTE AND TO REVISE 164 00:05:17,001 --> 00:05:19,000 AND EXTEND MY REMARKS. THE SPEAKER PRO TEMPORE: 165 00:05:19,001 --> 00:05:20,000 WITHOUT OBJECTION, THE 166 00:05:20,001 --> 00:05:21,000 GENTLEMAN IS RECOGNIZED FOR ONE 167 00:05:21,001 --> 00:05:22,000 MINUTE. 168 00:05:22,001 --> 00:05:24,000 MR. DICKS: MADAM SPEAKER, IT IS 169 00:05:24,001 --> 00:05:25,000 WITH GREAT SADNESS THAT I COME 170 00:05:25,001 --> 00:05:26,000 BEFORE THE HOUSE TO NOTE THE 171 00:05:26,001 --> 00:05:28,000 DEATH OF A LEADER IN THE CIVIL 172 00:05:28,001 --> 00:05:29,000 AVIATION INDUSTRY AND THE MAN 173 00:05:29,001 --> 00:05:32,000 FAMILIAR TO MANY HERE IN 174 00:05:32,001 --> 00:05:33,000 MR. ED SIMPSON, WHO SERVED AS 175 00:05:33,001 --> 00:05:34,000 PRESIDENT OF THE GENERAL 176 00:05:34,001 --> 00:05:36,000 AVIATION MANUFACTURERS 177 00:05:36,001 --> 00:05:38,000 ASSOCIATION FOR 19 YEARS, DIED IN HIS HOME ON NOVEMBER 25 IN 178 00:05:38,001 --> 00:05:40,000 BOISE, IDAHO. 179 00:05:40,001 --> 00:05:43,000 MANY OF US IN THIS CHAMBER RECALL THAT HE WAS THE DRIVING 180 00:05:43,001 --> 00:05:47,000 FORCE BEHIND THE GENERAL AVIATION REVITA 181 00:05:47,001 --> 00:05:49,000 WHICH ALTERED THE LIABILITY OF SMALL AIRCRAFT MANUFACTURERS 182 00:05:49,001 --> 00:05:51,000 AND LED TO A REINVIG RATION OF 183 00:05:51,001 --> 00:05:53,000 THE SMALL AIRCRAFT INDUSTRY IN 184 00:05:53,001 --> 00:05:55,000 THE UNITED STATES. 185 00:05:55,001 --> 00:05:56,000 AFTER HE RETIRED FROM DIRECT 186 00:05:56,001 --> 00:05:58,000 LEADERSHIP OF THE ASSOCIATION, 187 00:05:58,001 --> 00:06:00,000 HE TOOK ON A NEW PROJECT, THE 188 00:06:00,001 --> 00:06:02,000 BE A PILOT CAMPAIGN THAT WAS 189 00:06:02,001 --> 00:06:04,000 DESIGNATED TO I 190 00:06:04,001 --> 00:06:06,000 POPULATION OF STUDENT PILOTS IN 191 00:06:06,001 --> 00:06:08,000 THE UNITED STATES. IT WAS A GREAT SUCCESS. 192 00:06:08,001 --> 00:06:10,000 NOT ONLY IN ENLARGING THE 193 00:06:10,001 --> 00:06:11,000 NUMBER OF CITIZENS CAPABLE OF 194 00:06:11,001 --> 00:06:14,000 FLYING LIGHT AIRCRAFT BUT ALSO 195 00:06:14,001 --> 00:06:16,000 IN PROVIDING A TECHNOLOGICAL BOOST TO THE MANUFACTURING 196 00:06:16,001 --> 00:06:18,000 INDUSTRY THAT RILTED IN THE 197 00:06:18,001 --> 00:06:21,000 DESIGN AND CON-- RESULTED IN 198 00:06:21,001 --> 00:06:22,000 THE DESIGN AND CONSTRUCTION OF 199 00:06:22,001 --> 00:06:26,000 NEW AIRCRAFT. 200 00:06:26,001 --> 00:06:30,000 HE WAS PART OF THE NATIONAL 201 00:06:30,001 --> 00:06:32,000 AVIATION CIVIL ORGANIZATION. 202 00:06:32,001 --> 00:06:34,000 HE SERVED IN THAT POST AS 203 00:06:34,001 --> 00:06:35,000 AMBASSADOR THROUGH 2004. 204 00:06:35,001 --> 00:06:37,000 AND HE WAS ONE OF THREE 205 00:06:37,001 --> 00:06:39,000 AMBASSADORS TO BE REAPPOINTED 206 00:06:39,001 --> 00:06:42,000 BY PRESIDENT GEORGE W. BUSH. 207 00:06:42,001 --> 00:06:44,000 HIS REAPPOINTMENT WAS INDICATIVE OF THE BIPARTISAN 208 00:06:44,001 --> 00:06:45,000 APPROACH THAT HE BROUGHT TO ALL 209 00:06:45,001 --> 00:06:48,000 OF HIS ENDEAVORS. 210 00:06:48,001 --> 00:06:50,000 HE WAS THE RECIPIENT OF THE 211 00:06:50,001 --> 00:06:51,000 WRIGHT BROTHERS MEMORIAL TROPHY 212 00:06:51,001 --> 00:06:54,000 FOR LIFETIME ACHIEVEMENT. 213 00:06:54,001 --> 00:06:55,000 HE WAS A GREAT LEADER, A GREAT 214 00:06:55,001 --> 00:06:57,000 FRIEND TO MANY OF US AND HE 215 00:06:57,001 --> 00:06:59,000 WILL BE GREATLY MISSED. 216 00:06:59,001 --> 00:07:01,000 ALSO, MADAM SPEAKER, I'D LIKE 217 00:07:01,001 --> 00:07:05,000 TO HAVE A 218 00:07:05,001 --> 00:07:07,000 BY A LONG-TIME FRIEND OF HIS, 219 00:07:07,001 --> 00:07:09,000 MR. TED VAN DYKE. 220 00:07:09,001 --> 00:07:10,000 THANK YOU. 221 00:07:10,001 --> 00:07:12,000 THE SPEAKER PRO TEMPORE: THE 222 00:07:12,001 --> 00:07:14,000 GENTLEMAN'S TIME HAS EXPIRED. FOR WHAT PURPOSE DOES THE 223 00:07:14,001 --> 00:07:16,000 GENTLEMAN FROM GEORGIA RISE? 224 00:07:16,001 --> 00:07:18,000 MR. GINGREY: MADAM SPEAKER, TO ADDRESS THE HOUSE FOR ONE 225 00:07:18,001 --> 00:07:19,000 MINUTE AND TO REVISE AND 226 00:07:19,001 --> 00:07:20,000 EXTEND. 227 00:07:20,001 --> 00:07:22,000 THE SPEAKER PRO TEMPORE: 228 00:07:22,001 --> 00:07:23,000 WITHOUT OBJECTION, THE 229 00:07:23,001 --> 00:07:24,000 GENTLEMAN IS RECOGNIZED FOR ONE 230 00:07:24,001 --> 00:07:25,000 MINUTE. 231 00:07:25,001 --> 00:07:26,000 MR. GINGREY: MADAM SPEAKER, 232 00:07:26,001 --> 00:07:28,000 YESTERDAY, THIS HOUSE VOTED ON 233 00:07:28,001 --> 00:07:29,000 A 2,500-PAGE SPENDING BILL WITH 234 00:07:29,001 --> 00:07:30,000 A PRICE TAG OF ALMOST HALF 235 00:07:30,001 --> 00:07:32,000 TRILLION DOLLARS THAT WE WILL 236 00:07:32,001 --> 00:07:33,000 HAVE TO BORROW. 237 00:07:33,001 --> 00:07:35,000 THE MARITY IN THIS HOUSE JUST 238 00:07:35,001 --> 00:07:37,000 DON'T SEEM TO GET IT. WE ARE IN THE MIDST OF A 239 00:07:37,001 --> 00:07:38,000 RECESSION, 15.4% UNEMPLOYMENT 240 00:07:38,001 --> 00:07:39,000 -- EXCUSE ME -- 10% 241 00:07:39,001 --> 00:07:40,000 UNEMPLOYMENT, 15.4 MILLION 242 00:07:40,001 --> 00:07:42,000 PEOPLE OUT OF WORK. 243 00:07:42,001 --> 00:07:44,000 OUR FEDERAL DEFICIT IS OVER $12 244 00:07:44,001 --> 00:07:45,000 TRILLION, AND THE DEMOCRATS 245 00:07:45,001 --> 00:07:46,000 WILL VO 246 00:07:46,001 --> 00:07:49,000 THAT ANOTHER $1.8 TRILLION. 247 00:07:49,001 --> 00:07:50,000 YET, THIS HALF TRILLION-DOLLAR 248 00:07:50,001 --> 00:07:53,000 SPENDING BILL WHICH COMBINES 249 00:07:53,001 --> 00:07:55,000 SIX INTO ONE REPRESENTS A 12.5% 250 00:07:55,001 --> 00:08:00,000 SPENDING INCREASE OVER 2009 AND 251 00:08:00,001 --> 00:08:01,000 A 24% INCREASE OVER 2008. 252 00:08:01,001 --> 00:08:03,000 24% OVER 2008. 253 00:08:03,001 --> 00:08:06,000 I ASK HOW MUCH OF THIS IS REAL 254 00:08:06,001 --> 00:08:09,000 NEEDS OF OUR CITIZENS VERSUS 255 00:08:09,001 --> 00:08:10,000 JUST ONCE OF SPEND THRIFT 256 00:08:10,001 --> 00:08:13,000 POLITICIANS. 257 00:08:13,001 --> 00:08:15,000 MADAM SPE 258 00:08:15,001 --> 00:08:16,000 SPENDING SPREE. 259 00:08:16,001 --> 00:08:17,000 WE NEED TO HAVE THE ABILITY T 260 00:08:17,001 --> 00:08:19,000 MAKE TOUGH CHOICES TO GET OUR 261 00:08:19,001 --> 00:08:20,000 ECONOMY BACK ON TRACK AND PASS 262 00:08:20,001 --> 00:08:21,000 LEGISLATION THAT HELPS AMERICAN 263 00:08:21,001 --> 00:08:23,000 FAMILIES LOOKING TO MAKE ENDS 264 00:08:23,001 --> 00:08:26,000 MEET IN THESE TOUGH TIMES. 265 00:08:26,001 --> 00:08:27,000 GENTLEMAN'S TIME HAS EXPIRED. 266 00:08:27,001 --> 00:08:29,000 MR. GINGREY: A I YIELD BACK. 267 00:08:29,001 --> 00:08:30,000 THE SPEAKER PRO TEMPORE: THE 268 00:08:30,001 --> 00:08:31,000 GENTLEMAN'S TIME S EXPIRED. 269 00:08:31,001 --> 00:08:32,000 FOR WHAT PURPOSE DOES THE 270 00:08:32,001 --> 00:08:33,000 GENTLEMAN FROM IOWA RISE? 271 00:08:33,001 --> 00:08:34,000 >> TO DDRESS THE HOUSE FOR ONE 272 00:08:34,001 --> 00:08:36,000 MINUTE. 273 00:08:36,001 --> 00:08:37,000 THE SPEAKER PRO TEMPORE: 274 00:08:37,001 --> 00:08:38,000 WITHOUT OBJECTION, THE 275 00:08:38,001 --> 00:08:39,000 GENTLEMAN IS RECOGNIZED FOR ONE 276 00:08:39,001 --> 00:08:41,000 MINUTE. 277 00:08:41,001 --> 00:08:43,000 >> THANK YOU, MADAM SPEAKER. 278 00:08:43,001 --> 00:08:44,000 I -- THE UNITED STATES HAS THE 279 00:08:44,001 --> 00:08:45,000 SAFEST, MOST PLENTIFU 280 00:08:45,001 --> 00:08:46,000 BENEFICIAL FOOD SUPPLY IN THE 281 00:08:46,001 --> 00:08:47,000 WORLD. 282 00:08:47,001 --> 00:08:48,000 THIS ABUNDANT FOOD SUPPLY 283 00:08:48,001 --> 00:08:50,000 WASN'T BY ACCIDENT. 284 00:08:50,001 --> 00:08:51,000 THEY PUT PRACTICES IN PLACE 285 00:08:51,001 --> 00:08:52,000 WHICH ALLOW US TO CONTINUE TO 286 00:08:52,001 --> 00:08:53,000 FEED THE WORLD AT AFFORDABLE 287 00:08:53,001 --> 00:08:55,000 PRICES. 288 00:08:55,001 --> 00:08:56,000 HOWEVER, AGRICULTURE AND THOSE 289 00:08:56,001 --> 00:08:58,000 PRODUCTION PRACTICES ARE UNDER 290 00:08:58,001 --> 00:08:59,000 ATTACK. 291 00:08:59,001 --> 00:09:01,000 SOME IN CONGRESS WOULD BAN THE 292 00:09:01,001 --> 00:09:03,000 USE OF ANTIBIOTIC. 293 00:09:03,001 --> 00:09:05,000 AS A FARMER AND FORMER CHAIRMAN 294 00:09:05,001 --> 00:09:10,000 OF THE LIVE STOCK SUBCOMMITTEE, 295 00:09:10,001 --> 00:09:14,000 THE USE OF ANTIBUY OTTICS IS 296 00:09:14,001 --> 00:09:15,000 SOMETHING I HAVE BEEN INVOLVED 297 00:09:15,001 --> 00:09:16,000 IN. 298 00:09:16,001 --> 00:09:18,000 THEY HAVE DEVELOPED A 299 00:09:18,001 --> 00:09:20,000 RESPONSIBLE USE GUIDELINES. 300 00:09:20,001 --> 00:09:22,000 PRODUCERS DIDN'T DEVELOP THESE GUIDELINES BECAUSE CONGRESS 301 00:09:22,001 --> 00:09:23,000 TOLD THEM TO DO SO. 302 00:09:23,001 --> 00:09:25,000 THEY DEVELOPED THE GUIDELINES 303 00:09:25,001 --> 00:09:27,000 BECAUSE IT WAS THE RIGHT THING 304 00:09:27,001 --> 00:09:28,000 TO DO FOR THEIR ANIMALS AND 305 00:09:28,001 --> 00:09:32,000 CONSUMERS. 306 00:09:32,001 --> 00:09:34,000 THOSE THAT WOULD BAN ANTIBUY 307 00:09:34,001 --> 00:09:36,000 OTTICS HAVE -- ANTIBUY OTTICS 308 00:09:36,001 --> 00:09:43,000 HAVE A GOAL. 309 00:09:43,001 --> 00:09:44,000 -- ANTI-BIOTICS HAVE A GOAL. 310 00:09:44,001 --> 00:09:47,000 INDUSTRY WITHOUT DATA TO BACK 311 00:09:47,001 --> 00:09:48,000 UP THEIR CLAIM. 312 00:09:48,001 --> 00:09:49,000 THE SPEAKER PRO TEMPORE: FOR 313 00:09:49,001 --> 00:09:55,000 WHAT PURPOSE DOES THE 314 00:09:55,001 --> 00:09:57,000 GENTLEWOMAN FROM OHIO RISE? 315 00:09:57,001 --> 00:09:59,000 MS. SCHMIDT: TO ADDRESS THE 316 00:09:59,001 --> 00:10:01,000 HOUSE FOR ONE MINUTE. THE SPEAKER PRO TEMPORE: 317 00:10:01,001 --> 00:10:02,000 WITHOUT OBJECTION. 318 00:10:02,001 --> 00:10:04,000 MS. SCHMIDT: THIS COUNTRY'S 319 00:10:04,001 --> 00:10:06,000 A. CREDIT RATING WILL GO 320 00:10:06,001 --> 00:10:07,000 DOWN IF WE CAN'T H 321 00:10:07,001 --> 00:10:09,000 UNSUSTAINABLE DEFICIT. 322 00:10:09,001 --> 00:10:11,000 WE RAN A$1.4 TRILLION DEFICIT 323 00:10:11,001 --> 00:10:13,000 LAST YEAR AND WE ARE ON TRACK 324 00:10:13,001 --> 00:10:15,000 TO DO THE SAME THIS YEAR. 325 00:10:15,001 --> 00:10:16,000 THIS HOUSE PASSED SIX 326 00:10:16,001 --> 00:10:19,000 APPROPRIATIONS BILLS IN AN 327 00:10:19,001 --> 00:10:22,000 OMNIBUS PACKAGE WITH ALMOST 328 00:10:22,001 --> 00:10:23,000 HALF A TRILLION DOLLAR PRICE 329 00:10:23,001 --> 00:10:25,000 TAG. 330 00:10:25,001 --> 00:10:29,000 13% MORE THAN THE PRIOR YEAR 331 00:10:29,001 --> 00:10:30,000 FOLLOWING A BLOATED STIMULUS 332 00:10:30,001 --> 00:10:31,000 PACKAGE. 333 00:10:31,001 --> 00:10:32,000 WE A 334 00:10:32,001 --> 00:10:36,000 NATION TO ECONOMIC PROSPERITY, 335 00:10:36,001 --> 00:10:40,000 BUT WE CAN'T DO IT AND 336 00:10:40,001 --> 00:10:41,000 SIMULTANEOUSLY RUN OUR NATION 337 00:10:41,001 --> 00:10:43,000 WITHOUT FISCAL RESPONSIBILITY. 338 00:10:43,001 --> 00:10:45,000 MY GRANDCHILDREN WILL NOT BE 339 00:10:45,001 --> 00:10:50,000 ABLE TO AFFORD THE MOUNTAIN OF 340 00:10:50,001 --> 00:10:52,000 MOODY'S HAS WARNED US TO STOP 341 00:10:52,001 --> 00:10:54,000 IT AND STOP IT NOW OR LOSE OUR 342 00:10:54,001 --> 00:10:55,000 A.A.A. CREDIT RATING BY 2013. 343 00:10:55,001 --> 00:10:57,000 THIS CONGRESS MUST GET THE 344 00:10:57,001 --> 00:10:58,000 MESSAGE, GET THE MESSAGE NOW. 345 00:10:58,001 --> 00:11:00,000 STOP THE UNNECESSARY SPENDING. 346 00:11:00,001 --> 00:11:02,000 I YIELD BACK MY TIME. 347 00:11:02,001 --> 00:11:04,000 THE SPEAKER PRO TEMPORE: THE 348 00:11:04,001 --> 00:11:05,000 GENTLEWOMAN'S TIME HAS EXPIRED. 349 00:11:05,001 --> 00:11:07,000 GENTLEMAN FROM CONNECTICUT 350 00:11:07,001 --> 00:11:08,000 RISE? 351 00:11:08,001 --> 00:11:09,000 >> TO ADDRESS THE HOUSE FOR ONE 352 00:11:09,001 --> 00:11:10,000 MINUTE AND TO REVISE AND 353 00:11:10,001 --> 00:11:12,000 EXTEND. 354 00:11:12,001 --> 00:11:13,000 THE SPEAKER PRO TEMPORE: 355 00:11:13,001 --> 00:11:14,000 WITHOUT OBJECTION, THE 356 00:11:14,001 --> 00:11:15,000 GENTLEMAN IS RECOGNIZED FOR ONE 357 00:11:15,001 --> 00:11:17,000 MINUTE. 358 00:11:17,001 --> 00:11:19,000 >> MADAM SPEAKER, TODAY WHEN WE PASS THE WALL STREET REFORM AND 359 00:11:19,001 --> 00:11:21,000 CONSUMER PROTECTION ACT, IT 360 00:11:21,001 --> 00:11:22,000 WILL TAKE A HUGE STEP TOWARD 361 00:11:22,001 --> 00:11:23,000 THE PROTECTION OF THE AMERICAN 362 00:11:23,001 --> 00:11:25,000 CITIZENS, THE AMERICAN TAXPAYER 363 00:11:25,001 --> 00:11:26,000 AND THE AMERICAN BUSINESS. 364 00:11:26,001 --> 00:11:27,000 NEVER AGAIN WILL WALL STREET 365 00:11:27,001 --> 00:11:29,000 TAKE MASSIVE RISKS WITH THE 366 00:11:29,001 --> 00:11:30,000 EXPECTATION THAT THEY WILL BE 367 00:11:30,001 --> 00:11:32,000 BAILED OUT WHEN THEY FAIL. NEVER AGAIN WILL MORTGAGE 368 00:11:32,001 --> 00:11:33,000 BROKERS SELL MORTGAGES THAT 369 00:11:33,001 --> 00:11:34,000 THEY KNOW CAN'T POSSIBLY BE 370 00:11:34,001 --> 00:11:36,000 REPAID. 371 00:11:36,001 --> 00:11:37,000 NEVER AGAIN WILL THE CREDIT 372 00:11:37,001 --> 00:11:39,000 CARD COMPANIES MAKE BILLIONS 373 00:11:39,001 --> 00:11:40,000 FROM SELLING CONFUSION AMONGST 374 00:11:40,001 --> 00:11:42,000 AMERICAN CONSUMERS. 375 00:11:42,001 --> 00:11:44,000 I'VE BEN ST 376 00:11:44,001 --> 00:11:45,000 BY HOW CLOSELY WHAT WE'RE DOING 377 00:11:45,001 --> 00:11:47,000 TODAY MIRRORED WHAT HAPPENED IN 378 00:11:47,001 --> 00:11:49,000 THE 1930'S WHEN THIS CONGRESS 379 00:11:49,001 --> 00:11:51,000 CREATED A REGULATORY STRUCTURE. 380 00:11:51,001 --> 00:11:53,000 THE OPPOSITION SAID THIS WOULD 381 00:11:53,001 --> 00:11:55,000 BE TH 382 00:11:55,001 --> 00:11:57,000 END OF MARKETS AND INSTEAD THAT 383 00:11:57,001 --> 00:12:01,000 REFORM LED TO 60 OR 70 YEARS OF 384 00:12:01,001 --> 00:12:02,000 THE MOST INTENSE 385 00:12:02,001 --> 00:12:04,000 HUMAN RACE HAS EVER SEEN. 386 00:12:04,001 --> 00:12:05,000 WORD FOR WORD THOSE CHARGES 387 00:12:05,001 --> 00:12:07,000 HAVE BEEN REPEATED. 388 00:12:07,001 --> 00:12:08,000 THEY WERE WRONG THEN AND THEY 389 00:12:08,001 --> 00:12:12,000 ARE WRONG NOW. 390 00:12:12,001 --> 00:12:13,000 BE A TREMENDOUS STEP FORWARD 391 00:12:13,001 --> 00:12:14,000 FOR THE AMERICAN PEOPLE AND THE 392 00:12:14,001 --> 00:12:15,000 AMERICAN ECONOMY. 393 00:12:15,001 --> 00:12:17,000 THE SPEAKER PRO TEMPORE: THE 394 00:12:17,001 --> 00:12:19,000 GENTLEMAN'S TIME HAS EXPIRED. 395 00:12:19,001 --> 00:12:21,000 GENTLEMAN FROM SOUTH CAROLINA 396 00:12:21,001 --> 00:12:23,000 RISE? 397 00:12:23,001 --> 00:12:24,000 ASK PERMISSION TO ADDRESS THE 398 00:12:24,001 --> 00:12:25,000 HOUSE FOR ONE MINUTE AND TO 399 00:12:25,001 --> 00:12:27,000 REVISE AND EXTEND MY REMARKS. 400 00:12:27,001 --> 00:12:28,000 THE SPEAKER PRO TEMPORE: 401 00:12:28,001 --> 00:12:29,000 WITHOUT OBJECTION, THE 402 00:12:29,001 --> 00:12:30,000 GENTLEMAN IS RECOGNIZ 403 00:12:30,001 --> 00:12:32,000 MINUTE. 404 00:12:32,001 --> 00:12:34,000 MR. WILSON: MADAM SPEAKER, THIS 405 00:12:34,001 --> 00:12:36,000 WEEK I STOOD WITH MY COLLEAGUES TO INTRODUCE A BILL TO AUDIT 406 00:12:36,001 --> 00:12:37,000 STIMULUS FUNDS. 407 00:12:37,001 --> 00:12:39,000 IT'S TIME FOR CONGRESS TO 408 00:12:39,001 --> 00:12:41,000 DEMAND ANSWERS ON BEHALF OF THE HARDWORKING TAXPAYERS THAT WE 409 00:12:41,001 --> 00:12:42,000 REPRESENT. 410 00:12:42,001 --> 00:12:43,000 THE MISNAMED STIMULUS IS ONE OF 411 00:12:43,001 --> 00:12:44,000 THE LARGEST SPENDING BILLS IN 412 00:12:44,001 --> 00:12:46,000 OUR NATION'S HISTORY. 413 00:12:46,001 --> 00:12:47,000 IT IS CRITICAL THAT AMERICAN 414 00:12:47,001 --> 00:12:48,000 TAXPAYERS KNOW THE FACTS. 415 00:12:48,001 --> 00:12:50,000 THIS IS THE PEOPLE'S MONEY, NOT 416 00:12:50,001 --> 00:12:51,000 THE GOVERNMENT'S MONEY. 417 00:12:51,001 --> 00:12:52,000 IT IS WRONG THAT A 418 00:12:52,001 --> 00:12:53,000 WELL-CONNECTED DEMOCRAT 419 00:12:53,001 --> 00:12:55,000 POLLSSTER RECEIVED $6 MILLION 420 00:12:55,001 --> 00:12:56,000 TO PRESERVE JUST THREE JOBS 421 00:12:56,001 --> 00:12:57,000 WHEN WE COULD PROVIDE JOBS FOR 422 00:12:57,001 --> 00:12:58,000 DOZENS OF FAMILIES. 423 00:12:58,001 --> 00:13:00,000 I URGE SPEAKER PELOSI TO 424 00:13:00,001 --> 00:13:02,000 CONSIDER OUR LEGISLATION TO 425 00:13:02,001 --> 00:13:03,000 ENSURE FULL ACCOUNTABILITY OF 426 00:13:03,001 --> 00:13:05,000 EVERY DOLLAR SPENT. 427 00:13:05,001 --> 00:13:06,000 I FIRST SENT A LETTER TO THE 428 00:13:06,001 --> 00:13:09,000 PRESIDENT ASKING HIM TO 429 00:13:09,001 --> 00:13:10,000 IMPLEMENT THE RECOVERY PANEL 430 00:13:10,001 --> 00:13:11,000 THAT THE STIMULUS BILL 431 00:13:11,001 --> 00:13:13,000 PROVIDES. 432 00:13:13,001 --> 00:13:14,000 THE REQUEST WENT UNANSWERED. 433 00:13:14,001 --> 00:13:15,000 THEREFORE, INTRODUCED A 434 00:13:15,001 --> 00:13:17,000 NATIONAL COMMISSION TO 435 00:13:17,001 --> 00:13:19,000 INVESTIGATE HOW MANY JOBS HAVE 436 00:13:19,001 --> 00:13:21,000 ACTUALLY BEEN SAVED OR CREATED. 437 00:13:21,001 --> 00:13:22,000 TAXPAYERS SHOULD KNOW WHERE'S 438 00:13:22,001 --> 00:13:23,000 THE JOBS. 439 00:13:23,001 --> 00:13:25,000 IN CONCLUSION, GOD BLESS OUR 440 00:13:25,001 --> 00:13:27,000 TROOPS AND WE WILL NEVER FORGET 441 00:13:27,001 --> 00:13:28,000 SEPTEMBER 11 AND THE GLOBAL WAR 442 00:13:28,001 --> 00:13:30,000 ON TERRORISM. 443 00:13:30,001 --> 00:13:32,000 THE SPEAKER PRO TEMPORE: FOR 444 00:13:32,001 --> 00:13:33,000 WHAT PURPOSE DOES THE GENTLEMAN 445 00:13:33,001 --> 00:13:36,000 MR. KLEIN: TO ADDRESS THE HOUSE 446 00:13:36,001 --> 00:13:37,000 AND EXTEND MY REMARKS. 447 00:13:37,001 --> 00:13:39,000 THE SPEAKER PR 448 00:13:39,001 --> 00:13:41,000 WITHOUT OBJECTION. MR. KLEI MR. SPEAKER, 449 00:13:41,001 --> 00:13:43,000 CREATING JOBS IN SOUTH FLORIDA 450 00:13:43,001 --> 00:13:45,000 IS ONE OF MY TOP PRIORITIES IN THESE CHALLENGING ECONOMIC 451 00:13:45,001 --> 00:13:46,000 TIMES. 452 00:13:46,001 --> 00:13:48,000 WE MUST FIND WAYS TO CREATE 453 00:13:48,001 --> 00:13:50,000 GOOD JOBS IN OUR COMMUNITY AND ASSURE THAT OUR SMALL 454 00:13:50,001 --> 00:13:52,000 BUSINESSES ARE GROWING AND 455 00:13:52,001 --> 00:13:53,000 EXPANDING IN ORDER TO PROVIDE 456 00:13:53,001 --> 00:13:54,000 OPPORTUNITIES FOR WORK IN OUR 457 00:13:54,001 --> 00:13:55,000 LOCAL NEIGHBORHOODS. 458 00:13:55,001 --> 00:13:56,000 THERE ARE G 459 00:13:56,001 --> 00:13:57,000 THAT WE CAN BUILD ON. 460 00:13:57,001 --> 00:14:00,000 ONE EXAMPLE IS T.B.C. 461 00:14:00,001 --> 00:14:02,000 MY DISTRICT. 462 00:14:02,001 --> 00:14:03,000 AFTER WORKING CLOSELY WITH THE 463 00:14:03,001 --> 00:14:04,000 BUSINESS DEVELOPMENT BOARD OF 464 00:14:04,001 --> 00:14:06,000 PALM BEACH COUNTY, T.B.C., A 465 00:14:06,001 --> 00:14:07,000 LEADING NATIONAL SUPPLIER AND 466 00:14:07,001 --> 00:14:08,000 RETAILER OF AUTO TIRES, WILL 467 00:14:08,001 --> 00:14:10,000 EXPAND THEIR HEADQUARTERS AND 468 00:14:10,001 --> 00:14:11,000 DATA CENTER TO CREATE 50 NEW 469 00:14:11,001 --> 00:14:12,000 HIGH-QUALITY JOBS IN OUR 470 00:14:12,001 --> 00:14:14,000 COMMUNITY. 471 00:14:14,001 --> 00:14:16,000 CONGRATULATIONS TO THE 472 00:14:16,001 --> 00:14:18,000 MANAGEMENT OF T.B.C. THESE ARE THE BUSINESS MODELS 473 00:14:18,001 --> 00:14:19,000 WE MUST SUPPORT AND ENCOURAGE, 474 00:14:19,001 --> 00:14:21,000 AND I LO 475 00:14:21,001 --> 00:14:23,000 WITH OTH 476 00:14:23,001 --> 00:14:25,000 CONTINUE TO CREA SOUTH FLORIDA. 477 00:14:25,001 --> 00:14:26,000 THANK YOU, MR. SPEAKER. 478 00:14:26,001 --> 00:14:28,000 THE SPEAKER PRO TEMPORE: FOR 479 00:14:28,001 --> 00:14:30,000 WHAT PURPOSE DOES THE GENTL 480 00:14:30,001 --> 00:14:31,000 FROM VIRGINIA RISE? 481 00:14:31,001 --> 00:14:32,000 CONSENT TO A 482 00:14:32,001 --> 00:14:35,000 FOR ONE MINUTE. 483 00:14:35,001 --> 00:14:37,000 THE SPEAKER PRO TEMPORE: 484 00:14:37,001 --> 00:14:39,000 >> MR. SPEAKER, I RISE TODAY TO 485 00:14:39,001 --> 00:14:41,000 RECOGNIZE THE MEN AND WOMEN 486 00:14:41,001 --> 00:14:42,000 THIS GREAT NATION, MEN SUCH AS 487 00:14:42,001 --> 00:14:43,000 CAPTAIN SHAWN WELSH, UNITED 488 00:14:43,001 --> 00:14:45,000 STATES MARINE CORPS. 489 00:14:45,001 --> 00:14:47,000 IN NOVEMBER AMERICA CELEBRATED 234 YEARS OF HAVING A UNITED 490 00:14:47,001 --> 00:14:48,000 STATES MARINE CORPS THAT 491 00:14:48,001 --> 00:14:49,000 DEFENDS OUR PRECIOUS FREEDOMS 492 00:14:49,001 --> 00:14:51,000 AT HOME AND SERVES AS THE 493 00:14:51,001 --> 00:14:53,000 WORLD'S 9/11 FORCE AROUND THE 494 00:14:53,001 --> 00:14:54,000 GLOBE. 495 00:14:54,001 --> 00:14:55,000 WE ARE FORTUNATE TO HAVE MEN 496 00:14:55,001 --> 00:14:57,000 AND WOMEN WHO ARE WILLING TO 497 00:14:57,001 --> 00:14:58,000 ANSWER THE CALL OF DUTY TIME 498 00:14:58,001 --> 00:15:00,000 AND TIME AGAIN, ESPECIALLY IN 499 00:15:00,001 --> 00:15:02,000 THE MIDST OF TWO YEARS. THIS YEAR I HAD THE PLEASURE OF 500 00:15:02,001 --> 00:15:03,000 HAVING ONE OF THE FINEST TO 501 00:15:03,001 --> 00:15:05,000 SERVE IN MY OFFICE AS A 502 00:15:05,001 --> 00:15:06,000 CONGRESSIONAL MILITARY FELLOW, 503 00:15:06,001 --> 00:15:08,000 CAPTAIN SHAWN WELSH. 504 00:15:08,001 --> 00:15:11,000 IT'S AN HONOR TO WORK WITH HIM 505 00:15:11,001 --> 00:15:12,000 WHO LIVES IN QUAN COULD HE, 506 00:15:12,001 --> 00:15:15,000 VIRGINIA. 507 00:15:15,001 --> 00:15:16,000 AS -- QUANTICO, VIRGINIA. 508 00:15:16,001 --> 00:15:17,000 THE SOCIETY THAT SEPARATES ITS 509 00:15:17,001 --> 00:15:20,000 SCHOLARS FROM ITS WARRIORS WILL 510 00:15:20,001 --> 00:15:25,000 HAVE ITS THINKING DONE BY 511 00:15:25,001 --> 00:15:27,000 BY FOOLS. 512 00:15:27,001 --> 00:15:29,000 WE DON'T HAVE TO WORRY ABOUT 513 00:15:29,001 --> 00:15:31,000 THAT DISTINCTION. 514 00:15:31,001 --> 00:15:33,000 HE HAS ENTHUSIASM THAT WAS 515 00:15:33,001 --> 00:15:34,000 CLEARLY APPARENT DURING HIS 516 00:15:34,001 --> 00:15:36,000 YEAR ON CAPITOL HILL. 517 00:15:36,001 --> 00:15:37,000 HE SERVES AS A ROLE MODEL AND 518 00:15:37,001 --> 00:15:39,000 SUPERB EXAMPLE FOR SOCIETY IN 519 00:15:39,001 --> 00:15:42,000 THE MARINES HE LEAD. 520 00:15:42,001 --> 00:15:43,000 SO TODAY I THANK CAPTAIN SHAWN 521 00:15:43,001 --> 00:15:45,000 WELSH FOR HIS LEADERSHI 522 00:15:45,001 --> 00:15:47,000 SERVICE TO OUR NATION AND HIS 523 00:15:47,001 --> 00:15:49,000 PERFORMANCE THIS YEAR AS A 524 00:15:49,001 --> 00:15:50,000 HILL. 525 00:15:50,001 --> 00:15:51,000 WITH THAT I YIELD BACK, MR. 526 00:15:51,001 --> 00:15:59,000 SPEAKER. 527 00:15:59,001 --> 00:16:00,000 . 528 00:16:00,001 --> 00:16:04,000 THE SPEAKER PRO TEMPORE: THE 529 00:16:04,001 --> 00:16:07,000 CHAIR DECLARES THE HOUSE IN THE 530 00:16:07,001 --> 00:16:09,000 THE STATE OF THE UNION FOR 531 00:16:09,001 --> 00:16:15,000 FURTHER CONSIDERATION OF H.R. 532 00:16:15,001 --> 00:16:18,000 WILL THE GENTLEWOMAN FROM 533 00:16:18,001 --> 00:16:19,000 MARYLAND KINDLY RESUME THE CHAIR. 534 00:16:19,001 --> 00:16:20,000 THE CHAIR: THE HOUSE IS IN THE 535 00:16:20,001 --> 00:16:21,000 COMMITTEE OF THE WHOLE ON THE 536 00:16:21,001 --> 00:16:23,000 STATE OF THE UNION FOR THE 537 00:16:23,001 --> 00:16:24,000 FURTHER CONSIDERATION OF H.R. 538 00:16:24,001 --> 00:16:26,000 4173, WHICH THE CLERK WILL 539 00:16:26,001 --> 00:16:27,000 BY TITLE. 540 00:16:27,001 --> 00:16:29,000 THE CLERK: A BILL TO PROVIDE 541 00:16:29,001 --> 00:16:30,000 FOR FINANCIAL REGULATORY 542 00:16:30,001 --> 00:16:32,000 REFORM, TO PROTECT CONSUMERS 543 00:16:32,001 --> 00:16:34,000 AND INVESTORS, TO ENHANCE 544 00:16:34,001 --> 00:16:35,000 FEDERAL UNDERSTANDING OF 545 00:16:35,001 --> 00:16:38,000 INSURANCE ISSUES, TO REGULATE 546 00:16:38,001 --> 00:16:40,000 THE 547 00:16:40,001 --> 00:16:41,000 MARKETS, AND FOR OTHER PURPOSES. 548 00:16:41,001 --> 00:16:43,000 THE CHAIR: WHEN THE COMMITTEE 549 00:16:43,001 --> 00:16:46,000 OF THE WHOLE ROSE ON 550 00:16:46,001 --> 00:16:47,000 DECEMBER 10, 2009, AMENDMENTS 551 00:16:47,001 --> 00:16:48,000 EN BLOC OFFERED BY THE 552 00:16:48,001 --> 00:16:52,000 GENTLEMAN FROM MASSACHUSETTS, 553 00:16:52,001 --> 00:16:54,000 MR. FRANK, HAD BEEN DISPOSED 554 00:16:54,001 --> 00:16:56,000 OF. 555 00:16:56,001 --> 00:16:58,000 IT IS NOW IN ORDER TO CONSIDER 556 00:16:58,001 --> 00:17:01,000 AMENDMENT NUMBER 15 PRINTED IN 557 00:17:01,001 --> 00:17:02,000 HOUSE REPORT 111-370. 558 00:17:02,001 --> 00:17:07,000 FOR WHAT PURPOSE DOES THE 559 00:17:07,001 --> 00:17:10,000 GENTLEMAN FROM TENNESSEE RISE? 560 00:17:10,001 --> 00:17:15,000 MR. COHEN: I RI 561 00:17:15,001 --> 00:17:16,000 THE AMENDMENT BEFORE THE BODY. 562 00:17:16,001 --> 00:17:17,000 THE CHAIR: THE CLERK WILL 563 00:17:17,001 --> 00:17:18,000 DESIGNATE THE AMENDMENT. 564 00:17:18,001 --> 00:17:21,000 THE CLERK: AMENDMENT NUMBER 15, 565 00:17:21,001 --> 00:17:22,000 PRINTED IN HOUSE REPORT NUMBER 566 00:17:22,001 --> 00:17:26,000 111-370, OFFERED BY MR. COHEN 567 00:17:26,001 --> 00:17:27,000 OF TENNES 568 00:17:27,001 --> 00:17:29,000 THE CHAIR: PURSUANT TO HOUSE 569 00:17:29,001 --> 00:17:30,000 RESOLUTION 964, THE GENTLEMAN 570 00:17:30,001 --> 00:17:32,000 FROM TENNESSEE, MR. COHEN, AND 571 00:17:32,001 --> 00:17:33,000 A MEMBER OPPOSED, EACH WILL 572 00:17:33,001 --> 00:17:38,000 CONTROL FIVE MUTES. 573 00:17:38,001 --> 00:17:40,000 GENTLEMAN FROM TENNESSEE. THANK? YOU, MADAM CHAIR. 574 00:17:40,001 --> 00:17:42,000 I WOULD TAKE AS MUCH TIME AS I Y CONSUME. 575 00:17:42,001 --> 00:17:44,000 I WANT TO THANK CHAIRMAN FRANK 576 00:17:44,001 --> 00:17:45,000 FOR WORKING WITH ME TO INCLUDE 577 00:17:45,001 --> 00:17:47,000 THIS LANGUAGE IN THE WALL 578 00:17:47,001 --> 00:17:49,000 STREET REFORM AND CON 579 00:17:49,001 --> 00:17:51,000 PROTECTION ACT OF 2009. 580 00:17:51,001 --> 00:17:52,000 THIS AMENDMENT WOULD STRIP A 581 00:17:52,001 --> 00:17:53,000 PROVISION PERMITTING THE 582 00:17:53,001 --> 00:17:54,000 SECURITIES AND EXCHANGE 583 00:17:54,001 --> 00:17:56,000 COMMISSION TO DELEGATE 584 00:17:56,001 --> 00:17:57,000 REGULATION OF INVESTMENT 585 00:17:57,001 --> 00:18:00,000 ADVISORS TO THE FINANCIAL 586 00:18:00,001 --> 00:18:02,000 INDUSTRY REGULATORY AUTHORITY. 587 00:18:02,001 --> 00:18:04,000 IN ITS PRESENT FORM, THE BILL 588 00:18:04,001 --> 00:18:05,000 WOULD GIVE THEM SWEEPING RULE 589 00:18:05,001 --> 00:18:08,000 MAKING AUTHORITY OVER INVEMENT ADVISORS WHICH HAS 590 00:18:08,001 --> 00:18:10,000 BEEN UNDER THE SOLE DOMAIN OF 591 00:18:10,001 --> 00:18:12,000 THE GOVERNMENT REGULATORY AGENCIES. 592 00:18:12,001 --> 00:18:13,000 THIS FAR-REACHING PROVISION 593 00:18:13,001 --> 00:18:15,000 WOULD EXTEND JURISDICTION TO 594 00:18:15,001 --> 00:18:16,000 FEDERALLY REGISTERED INVESTMENT 595 00:18:16,001 --> 00:18:20,000 ADVISORY FIRMS THAT MANAGE 596 00:18:20,001 --> 00:18:23,000 ALMOST 80% OF ALL ADVISORY 597 00:18:23,001 --> 00:18:26,000 FIRMS AASSETS UNDER MANAGEMENT. 598 00:18:26,001 --> 00:18:29,000 FENERTY DOES NOT HAVE THE 599 00:18:29,001 --> 00:18:31,000 EXPERTISE TO -- WITH THE 600 00:18:31,001 --> 00:18:33,000 INVESTMENT ADVISORS ACT 601 00:18:33,001 --> 00:18:35,000 ANTI-S.E.C. IS BEST POSITION TO 602 00:18:35,001 --> 00:18:37,000 OVERSEE THE INVESTMENT ADVISORS ACT. 603 00:18:37,001 --> 00:18:40,000 THERE IS INHERENT CONFLICT OF 604 00:18:40,001 --> 00:18:43,000 INTEREST IN HAVING A SELF-REGULATORY GROUP 605 00:18:43,001 --> 00:18:46,000 ORGANIZATION THAT FUNDS THIS 606 00:18:46,001 --> 00:18:48,000 AGENCY AND HAS ALWAYS BEEN ON 607 00:18:48,001 --> 00:18:50,000 THE DE OF BROKER-DEALERS. 608 00:18:50,001 --> 00:18:53,000 WE CANNOT 609 00:18:53,001 --> 00:18:55,000 KEY REGULATING FUNCTIONS SOLELY 610 00:18:55,001 --> 00:18:57,000 IN THE BEST INTEREST OF THEIR CLIENTS. 611 00:18:57,001 --> 00:18:59,000 IN HIS SPEECH EARLIER THIS 612 00:18:59,001 --> 00:19:01,000 YEAR, THE S.E.C. COMMISSIONER 613 00:19:01,001 --> 00:19:02,000 NOTICED HIS OPPOSITI TO 614 00:19:02,001 --> 00:19:03,000 ESTABLISHING A SELF-REGULATORY 615 00:19:03,001 --> 00:19:04,000 ORGANIZATION FOR INVESTMENT 616 00:19:04,001 --> 00:19:05,000 ADVISORS BECAUSE THE S.E.C. 617 00:19:05,001 --> 00:19:07,000 SHOULD NOT OUTSOURCE ITS 618 00:19:07,001 --> 00:19:08,000 MISSION AND BECAUSE THE S.E.C. 619 00:19:08,001 --> 00:19:10,000 IS THE ONLY SECURITIES 620 00:19:10,001 --> 00:19:11,000 REGULATOR WITH THE NECESSARY 621 00:19:11,001 --> 00:19:12,000 EXPERIENCE IN DEALING WITH THE 622 00:19:12,001 --> 00:19:13,000 PRINCIPA 623 00:19:13,001 --> 00:19:16,000 I AM CONCERNED THAT THE HIGH 624 00:19:16,001 --> 00:19:18,000 LEVEL OF INVESTOR PROTECTION 625 00:19:18,001 --> 00:19:21,000 PROVIDED UNDER THE VIDSOR ACT 626 00:19:21,001 --> 00:19:23,000 WILL BE DEAN MISHED IF THEY AUTHORITY. 627 00:19:23,001 --> 00:19:25,000 WE SHOULD NOT EXTEND THE 628 00:19:25,001 --> 00:19:27,000 AUTHORITY TO THE ADVISORY PROFESSION. 629 00:19:27,001 --> 00:19:29,000 AGAIN I URGE PASSAGE OF THIS AMENDMENT WHICH WOULD KEEP THE 630 00:19:29,001 --> 00:19:30,000 S.E.C. AS THE PROPER 631 00:19:30,001 --> 00:19:32,000 INDEPENDENREGULATOR OF 632 00:19:32,001 --> 00:19:33,000 INVESTMENT 633 00:19:33,001 --> 00:19:34,000 I RESERVE THE BALANCE OF MY 634 00:19:34,001 --> 00:19:35,000 TIME. 635 00:19:35,001 --> 00:19:37,000 THE CHAIR: THE GENTLEMAN 636 00:19:37,001 --> 00:19:39,000 RESERVES. FOR WHAT PURPOSE DOES THE 637 00:19:39,001 --> 00:19:40,000 GENTLEMAN FROM ALABAMA SEEK RECOGNITION? 638 00:19:40,001 --> 00:19:41,000 MR. BACHUS: TO CLAIM THE TE 639 00:19:41,001 --> 00:19:42,000 IN OPPOSITION. 640 00:19:42,001 --> 00:19:43,000 THE CHAIR: WITHOUT OBJECTION, 641 00:19:43,001 --> 00:19:45,000 THE GENTLEMAN IS RECOGNIZED FOR FIVE MINUTES. 642 00:19:45,001 --> 00:19:49,000 MR. BACHUS: THANK YOU. 643 00:19:49,001 --> 00:19:53,000 LET ME SAY TO THE G 644 00:19:53,001 --> 00:19:58,000 FROM TENNESSEE, LET ME EXPLAIN 645 00:19:58,001 --> 00:20:01,000 THE PURPOSE BEHIND THE 646 00:20:01,001 --> 00:20:03,000 PROVISION WHICH YOUR AMENDMENT 647 00:20:03,001 --> 00:20:05,000 SEEKS TO STRIKE. 648 00:20:05,001 --> 00:20:07,000 AND I SAY THAT -- I WOULD BE 649 00:20:07,001 --> 00:20:14,000 GLAD TO WORK WITH THE CHAIRMAN 650 00:20:14,001 --> 00:20:15,000 AND WITH 651 00:20:15,001 --> 00:20:17,000 TIME STRIKING THE PROVISION 652 00:20:17,001 --> 00:20:20,000 THAT I INSERTED IN 653 00:20:20,001 --> 00:20:23,000 COMMITTEE THAT YOU OBJECT TO. 654 00:20:23,001 --> 00:20:24,000 VOTE. 655 00:20:24,001 --> 00:20:25,000 -- WE'LL ASK FOR A RECORDED 656 00:20:25,001 --> 00:20:26,000 VOTE. 657 00:20:26,001 --> 00:20:27,000 LET ME EXPLAIN THE BACKGROUND 658 00:20:27,001 --> 00:20:29,000 BEHIND THIS AMENDMENT. 659 00:20:29,001 --> 00:20:32,000 I THINK WE -- IF WE CA ALL 660 00:20:32,001 --> 00:20:36,000 WORK TOGETHER WE CAN 661 00:20:36,001 --> 00:20:41,000 WE CAN 662 00:20:41,001 --> 00:20:44,000 AND MAKE A BETTER SYSTEM. 663 00:20:44,001 --> 00:20:49,000 THE BODY WILL RALL AND THE 664 00:20:49,001 --> 00:20:52,000 CHAIRMAN ON DECEMBER 12 OF LAST 665 00:20:52,001 --> 00:20:53,000 YEAR, ABOUT A YEAR AGO, BERNIE 666 00:20:53,001 --> 00:20:55,000 MADOFF WAS ARRESTED FOR 667 00:20:55,001 --> 00:21:00,000 COMMITTING THE LARGEST 668 00:21:00,001 --> 00:21:02,000 FINANCIAL FRAUD IN THE HISTORY 669 00:21:02,001 --> 00:21:05,000 TREMENDOUS SCAM. 670 00:21:05,001 --> 00:21:06,000 $65 MILLION PONZI SCHEME WHICH 671 00:21:06,001 --> 00:21:08,000 DEFRAUDED YOU NONPROFITS, 672 00:21:08,001 --> 00:21:09,000 UNIVERSITIES, PEN 673 00:21:09,001 --> 00:21:11,000 AND WIPED OUT THE SAVINGS OF 674 00:21:11,001 --> 00:21:13,000 LITERALLY TENS OF THOUSANDS OF 675 00:21:13,001 --> 00:21:17,000 FAMILIES AND CITIZENS. 676 00:21:17,001 --> 00:21:19,000 NOW, TO DO THIS BERNIE MADOFF 677 00:21:19,001 --> 00:21:22,000 OPERATED TWO SEPARATE ENTITIES. 678 00:21:22,001 --> 00:21:26,000 ONE WAS A BROKER-DEALER, AND 679 00:21:26,001 --> 00:21:29,000 ONE WAS AN INVESTMENT ADVISOR 680 00:21:29,001 --> 00:21:30,000 THE FRAUD OCCURRED IN THE 681 00:21:30,001 --> 00:21:33,000 INVESTOR ADVISOR. 682 00:21:33,001 --> 00:21:35,000 THAT'S WHERE THE OCCURRED. 683 00:21:35,001 --> 00:21:38,000 THE INVESTMENT VISOR WAS 684 00:21:38,001 --> 00:21:43,000 REGISTERED WITH THE S.E.C. 685 00:21:43,001 --> 00:21:45,000 THE S.E.C., THE INVESTMENT 686 00:21:45,001 --> 00:21:46,000 ADVISOR, MADOFF'S INVESTMENT 687 00:21:46,001 --> 00:21:48,000 ADVISOR, WAS SUBJECT TO 688 00:21:48,001 --> 00:21:49,000 EXAMINATION BY THE S.E.C.. 689 00:21:49,001 --> 00:21:52,000 BUT I WOULD POINT OUT THE 690 00:21:52,001 --> 00:21:54,000 CHAIRMAN OF THE FULL COMMITTEE 691 00:21:54,001 --> 00:21:55,000 AND THE GENTLEMAN FROM 692 00:21:55,001 --> 00:21:58,000 TENNESSEE, THEY NEVER EXAMINED 693 00:21:58,001 --> 00:22:01,000 THE INVESTOR ADVISOR. 694 00:22:01,001 --> 00:22:03,000 THEY NEVER EXAMINED IT. 695 00:22:03,001 --> 00:22:06,000 MADOFF OPERATED A BROKER DEALER 696 00:22:06,001 --> 00:22:08,000 IN THE SAME PREMISE -- PREMISES 697 00:22:08,001 --> 00:22:11,000 AND UNDER THE SAME NAME. 698 00:22:11,001 --> 00:22:13,000 AND IT WAS EXAMINED, SUBJECT BY 699 00:22:13,001 --> 00:22:17,000 EXAMINATION BY THE S.E.C. AND 700 00:22:17,001 --> 00:22:19,000 BY FENRA WHO I WAS SAYING LET 701 00:22:19,001 --> 00:22:21,000 FENRA GO AHEAD AND EXAMINE THE 702 00:22:21,001 --> 00:22:23,000 INVESTMENT ADVISORS. 703 00:22:23,001 --> 00:22:24,000 THESE DUAL 704 00:22:24,001 --> 00:22:28,000 HAVE BOTH. 705 00:22:28,001 --> 00:22:30,000 FENRA, THE BROKER DEALER, AT 706 00:22:30,001 --> 00:22:32,000 LEAST EVERY OTHER YEAR, THEY INSPECTED THEM. 707 00:22:32,001 --> 00:22:33,000 BUT THE FRAUD DIDN'T OCCUR 708 00:22:33,001 --> 00:22:35,000 THERE. 709 00:22:35,001 --> 00:22:36,000 IT OCCURRED IN THE INVESTMENT 710 00:22:36,001 --> 00:22:38,000 ADVISOR. 711 00:22:38,001 --> 00:22:41,000 FENRA LACKED THE AUTHORITY TO 712 00:22:41,001 --> 00:22:42,000 GO IN AND EXAMINE THE INVESTOR 713 00:22:42,001 --> 00:22:44,000 ADVISOR. 714 00:22:44,001 --> 00:22:46,000 THEY COULDN'T EXAMINE IT. 715 00:22:46,001 --> 00:22:47,000 AND MY AMENDMENT WAS -- 716 00:22:47,001 --> 00:22:49,000 PROVISION I PUT IN THE 717 00:22:49,001 --> 00:22:52,000 COMMITTEE SAID, LET THEM BE 718 00:22:52,001 --> 00:22:53,000 ABLE TO, AS THEY EXAMINE THE 719 00:22:53,001 --> 00:22:55,000 BROKER DEARLY, LET THEM GO IN 720 00:22:55,001 --> 00:22:57,000 AND LOOK AT THE BOOKS OF THE 721 00:22:57,001 --> 00:23:00,000 INVESTMENT ADVISOR IF YOU ARE 722 00:23:00,001 --> 00:23:01,000 OPERATING A DUALP OPERATION. 723 00:23:01,001 --> 00:23:03,000 -- DUA 724 00:23:03,001 --> 00:23:04,000 HAD THEY HAD THE RIGHT, THEY 725 00:23:04,001 --> 00:23:06,000 WOULD HAVEONE IN AND THEY 726 00:23:06,001 --> 00:23:07,000 WOULD HAVE DISCOVERED THIS 727 00:23:07,001 --> 00:23:08,000 FRAUD. 728 00:23:08,001 --> 00:23:09,000 E S.E.C. WHICH HAD THE RIGHT 729 00:23:09,001 --> 00:23:11,000 NEVER DID IT. 730 00:23:11,001 --> 00:23:13,000 NOW, AS I SAID EARLIER, MAYBE 731 00:23:13,001 --> 00:23:16,000 THERE'S ANOTHER SOLUTION. 732 00:23:16,001 --> 00:23:18,000 THE 733 00:23:18,001 --> 00:23:19,000 DON'T WANT FENRA TAKING OVER 734 00:23:19,001 --> 00:23:22,000 R JURI 735 00:23:22,001 --> 00:23:24,000 WHAT I'D LIKE TO SAY IS MAKE 736 00:23:24,001 --> 00:23:25,000 SURE THE S.E.C. STARTS DOING 737 00:23:25,001 --> 00:23:27,000 THEIR JOB. 738 00:23:27,001 --> 00:23:31,000 LET'S MAKE SURE THAT THEY START 739 00:23:31,001 --> 00:23:32,000 EXAMING THESE INVESTMENT 740 00:23:32,001 --> 00:23:34,000 ADVISORS. 741 00:23:34,001 --> 00:23:37,000 SOMEONE NEEDS TO. 742 00:23:37,001 --> 00:23:40,000 THE AVERAGE INVESTMENT ADVISOR 743 00:23:40,001 --> 00:23:42,000 IS ONLY EXAMINED YEARS. 744 00:23:42,001 --> 00:23:44,000 BERNIE MADOFF'S INVESTMENT 745 00:23:44,001 --> 00:23:46,000 ADVISOR WAS NEVER EXAMINED. 746 00:23:46,001 --> 00:23:48,000 IT'S THE KIND OF GAP IN 747 00:23:48,001 --> 00:23:49,000 REGULATION THAT CAUSES 748 00:23:49,001 --> 00:23:50,000 DISASTERS. 749 00:23:50,001 --> 00:23:52,000 IT CAUSES SCAMS. 750 00:23:52,001 --> 00:23:56,000 IT CAUSES BERNIE MADOFFS OF THE 751 00:23:56,001 --> 00:23:58,000 WORLD TO GET ALONG FOR DECADES. 752 00:23:58,001 --> 00:23:59,000 THAT'S WHY I INTRODUCED THIS 753 00:23:59,001 --> 00:24:01,000 AMENDMENT. 754 00:24:01,001 --> 00:24:02,000 I MEAN THE PROVISION, WHICH WE 755 00:24:02,001 --> 00:24:04,000 ARE NOW STRIKING. 756 00:24:04,001 --> 00:24:05,000 NOW, GOING FORWARD WE AT LEAST 757 00:24:05,001 --> 00:24:10,000 NEED TO LOOK AT THIS. 758 00:24:10,001 --> 00:24:13,000 WE NEED TO KNOW THAT THERE ARE 759 00:24:13,001 --> 00:24:15,000 500 OR 600 OF THESE INVESTMENT 760 00:24:15,001 --> 00:24:20,000 ADVISORS AND BROKER DEALERS, 761 00:24:20,001 --> 00:24:24,000 DUAL OPERATIONS. 762 00:24:24,001 --> 00:24:25,000 WE NEED TO MAKE CLEARHAT THE 763 00:24:25,001 --> 00:24:27,000 S.E.C. -- SOMEWHERE 764 00:24:27,001 --> 00:24:29,000 HAVE THE AUTHORITY TO EXAMINE 765 00:24:29,001 --> 00:24:30,000 BOTH 766 00:24:30,001 --> 00:24:31,000 BROKER DEALERS. 767 00:24:31,001 --> 00:24:32,000 IF THEY WANT TO PERFORM THAT 768 00:24:32,001 --> 00:24:33,000 MISSION. 769 00:24:33,001 --> 00:24:35,000 AND I KNOW ONE THING THE 770 00:24:35,001 --> 00:24:37,000 CHAIRMAN HAS DONE, HE'S ADDED 771 00:24:37,001 --> 00:24:39,000 MORE MONEY FOR THE S.E.C. 772 00:24:39,001 --> 00:24:41,000 AND I THINK THAT'S PART OF THE ANSWER. 773 00:24:41,001 --> 00:24:45,000 BUT I THINK THIS COMMITTEE, 774 00:24:45,001 --> 00:24:46,000 THIS CONGRESS AS WE GO FORWARD 775 00:24:46,001 --> 00:24:47,000 NEEDS TO MAKE SURE THEY DO 776 00:24:47,001 --> 00:24:50,000 THEIR JOB. 777 00:24:50,001 --> 00:24:52,000 THERE WAS A MONUMENTAL FAILURE OF THE S.E.C. 778 00:24:52,001 --> 00:24:54,000 IF THEY DON'T DO THEIR JOB, OR 779 00:24:54,001 --> 00:24:55,000 WE FIND THEY DON'T, AND THEY 780 00:24:55,001 --> 00:24:57,000 HAVE THE RESOURCES -- 781 00:24:57,001 --> 00:24:58,000 THE CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED. 782 00:24:58,001 --> 00:24:59,000 MR. BACHUS 783 00:24:59,001 --> 00:25:02,000 SOMEONE ELSE. 784 00:25:02,001 --> 00:25:03,000 E CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED. 785 00:25:03,001 --> 00:25:04,000 THE GENT RECOGNIZED. 786 00:25:04,001 --> 00:25:05,000 MR. COHEN: THANK YOU, MADAM SPEAKER. 787 00:25:05,001 --> 00:25:06,000 I WANT TO THANK THE GENTLEMAN 788 00:25:06,001 --> 00:25:07,000 FOR HIS WORKING WITH US ON THE 789 00:25:07,001 --> 00:25:08,000 AMENDMENT. 790 00:25:08,001 --> 00:25:09,000 I'D LIKE TO YIELD AS M 791 00:25:09,001 --> 00:25:11,000 AS HE NEEDS TO THE CHAIRMAN OF 792 00:25:11,001 --> 00:25:12,000 THE FULL COMMITTEE, MR. FRANK. 793 00:25:12,001 --> 00:25:13,000 THE CHAIR: THE GENTLEMAN FROM 794 00:25:13,001 --> 00:25:16,000 MASSACHUSETTS IS RECOGNIZED. 795 00:25:16,001 --> 00:25:17,000 MR. FRANK: I THANK BOTH MY 796 00:25:17,001 --> 00:25:18,000 COLLEAGUES. 797 00:25:18,001 --> 00:25:20,000 THE RANKING MEMBER IS EXACTLY 798 00:25:20,001 --> 00:25:22,000 RIGHT IN THE CONCERNS HE'S EXPRESSED. 799 00:25:22,001 --> 00:25:24,000 THAT WHY AT 800 00:25:24,001 --> 00:25:26,000 CHAIRMAN OF THE SUBCOMMITTEE, 801 00:25:26,001 --> 00:25:27,000 MR. KANJORSKI, AND I TENTATIVE 802 00:25:27,001 --> 00:25:28,000 TY AGREED TO THIS. 803 00:25:28,001 --> 00:25:30,000 WE LATER HEARD SOME QUESTIONS 804 00:25:30,001 --> 00:25:34,000 RAISED IN PARTICULAR, SOME I 805 00:25:34,001 --> 00:25:36,000 THINK WHOM WE HAVE AN AMOUNT OF 806 00:25:36,001 --> 00:25:37,000 RESPECT, THE LONG TIME TEXAS 807 00:25:37,001 --> 00:25:40,000 SECURITIES ADMINISTRATOR, WHO 808 00:25:40,001 --> 00:25:41,000 REALLY GOES BACK FOUR, FIVE 809 00:25:41,001 --> 00:25:44,000 TEXANS ADMINISTRATIONS IN A BIPARTISAN WAY. 810 00:25:44,001 --> 00:25:46,000 AMERICAN SECURITIES 811 00:25:46,001 --> 00:25:47,000 ADMINISTRATION ASSOCIATION, SHE 812 00:25:47,001 --> 00:25:49,000 RAISED CONCERNS. 813 00:25:49,001 --> 00:25:50,000 THEY WERE WORRIED THAT THIS 814 00:25:50,001 --> 00:25:54,000 MIGHT AT SOME POINT BE TOO MUCH 815 00:25:54,001 --> 00:25:57,000 OF A DELEGATION AND THEREFORE, 816 00:25:57,001 --> 00:25:59,000 I APPRECIATE THE GENTLEMAN'S 817 00:25:59,001 --> 00:26:01,000 COMMENTS, WE AGREE WITH ME WE 818 00:26:01,001 --> 00:26:02,000 DO -- ALWAYS TO BUFF UP 819 00:26:02,001 --> 00:26:04,000 INVESTOR PROTECTION. 820 00:26:04,001 --> 00:26:05,000 CLEARLY THERE IS A ROLE FOR 821 00:26:05,001 --> 00:26:07,000 FENRA. 822 00:26:07,001 --> 00:26:10,000 I THINK WE MAY HAVE GONE A BILL 823 00:26:10,001 --> 00:26:11,000 TOO FAR IN WHAT WE ACCEPTED IN THE COMMITTEE. 824 00:26:11,001 --> 00:26:12,000 WE ARE NOT TALKING ABOUT 825 00:26:12,001 --> 00:26:14,000 GETTING RID OF IT ALTOGETHER. 826 00:26:14,001 --> 00:26:16,000 I APPRECIATE THE REASONABLENESS 827 00:26:16,001 --> 00:26:18,000 OF WHAT THE GENTLEMAN FROM ALABAMA HAS SAID. 828 00:26:18,001 --> 00:26:20,000 IT WILL BE OUR ROLE NEXT YEAR 829 00:26:20,001 --> 00:26:21,000 IF TS BILL PASSES TO MONITOR 830 00:26:21,001 --> 00:26:23,000 THE S.E.C. 831 00:26:23,001 --> 00:26:24,000 I LOOK FORWARD TO OVERSIGHT 832 00:26:24,001 --> 00:26:26,000 HEARINGS TO MAKE SURE THEY ARE 833 00:26:26,001 --> 00:26:28,000 USING THEIR AUTHORITY. AND PARTICULARLY THE QUESTION 834 00:26:28,001 --> 00:26:31,000 OF HOW BEST TO ALLOW THE S.E.C. 835 00:26:31,001 --> 00:26:33,000 TO DRAW ON THE RESOURCES OF 836 00:26:33,001 --> 00:26:34,000 FENRA BE WILL BE ON -- HIGH ON 837 00:26:34,001 --> 00:26:35,000 OUR AGENDA. 838 00:26:35,001 --> 00:26:37,000 I YIELD TO THE GENTLEMAN. 839 00:26:37,001 --> 00:26:38,000 MR. BACHUS: IF THE GENTLEMAN 840 00:26:38,001 --> 00:26:39,000 WOULD YIELD. 841 00:26:39,001 --> 00:26:41,000 I APPRECIATE THAT. 842 00:26:41,001 --> 00:26:43,000 LOGICAL 843 00:26:43,001 --> 00:26:44,000 SOLUTION TO THIS. 844 00:26:44,001 --> 00:26:49,000 AT THIS TIME I LL SUPPORT THE 845 00:26:49,001 --> 00:26:50,000 GENTLEMAN'S AMENDMENT TO 846 00:26:50,001 --> 00:26:52,000 THE PROVISION. 847 00:26:52,001 --> 00:26:54,000 AS I SAID WHEN I BROUGHT THIS 848 00:26:54,001 --> 00:26:56,000 PROVISION UP, I WANTED TO 849 00:26:56,001 --> 00:26:59,000 HIGHLIGHT THE FACT THAT THIS IS 850 00:26:59,001 --> 00:27:01,000 HOW BERNIE MADOFF -- HE GOT 851 00:27:01,001 --> 00:27:04,000 AWAY WITH OPERATING THESE TWO 852 00:27:04,001 --> 00:27:07,000 OPERATIONS IN THE SAME PREMISES . 853 00:27:07,001 --> 00:27:09,000 AND WE NEED TO DO -- THE 854 00:27:09,001 --> 00:27:10,000 REGULATORS NEED TO DO 855 00:27:10,001 --> 00:27:12,000 JOB. 856 00:27:12,001 --> 00:27:17,000 SOMEONE OF BEING ABLE TO LOOK 857 00:27:17,001 --> 00:27:18,000 ACROSS THOSE OPERATIONS. 858 00:27:18,001 --> 00:27:19,000 THE CHAIR: THE GENTLEMAN FROM 859 00:27:19,001 --> 00:27:21,000 TENNESSEE IS RECOGNIZED. MR. COHEN: THANK YOU. 860 00:27:21,001 --> 00:27:22,000 I WOULD LIKE TO THANK AGAIN THE 861 00:27:22,001 --> 00:27:23,000 GENTLEMAN FROM ALABAMA. 862 00:27:23,001 --> 00:27:24,000 I KNOW IT'S DIFFICULT FOR HIM 863 00:27:24,001 --> 00:27:26,000 TO WORK WITH US ON THIS BECAUSE 864 00:27:26,001 --> 00:27:28,000 HE IS THE CHAMPION OF THE 865 00:27:28,001 --> 00:27:30,000 S.E.C. 866 00:27:30,001 --> 00:27:31,000 THE CRIMSON TIDE OF ALABAMA. 867 00:27:31,001 --> 00:27:34,000 WITH THAT I WOULD LE TO URGE 868 00:27:34,001 --> 00:27:35,000 THE PASSAGE OF THE AMENDMENT. 869 00:27:35,001 --> 00:27:36,000 I YIELD BACK THE BALANCE OF MY TIME. 870 00:27:36,001 --> 00:27:37,000 THE CHAIR: THE GENTLEMAN 871 00:27:37,001 --> 00:27:39,000 YIELDS. THE QUESTION IS ON THE 872 00:27:39,001 --> 00:27:40,000 AMENDMENT OFFERED BY THE 873 00:27:40,001 --> 00:27:41,000 GENTLEMAN FROM TENNESSEE. 874 00:27:41,001 --> 00:27:45,000 SO MANY AS ARE IN FAVOR SAY AYE. 875 00:27:45,001 --> 00:27:46,000 THOSE OPPOSED, NO. 876 00:27:46,001 --> 00:27:51,000 IN THE OPINION OF THE CHAIR, 877 00:27:51,001 --> 00:27:53,000 THE AYES HAVE IT. AGREED TO. 878 00:27:53,001 --> 00:27:54,000 IT IS NOW IN ORDER TO CONSIDER 879 00:27:54,001 --> 00:27:58,000 AMENDMENT NUMBER 16 PRINTED IN 880 00:27:58,001 --> 00:27:59,000 HOUSE REPORT 111-3 881 00:27:59,001 --> 00:28:03,000 FOR WHAT PURPOSE DOES THE 882 00:28:03,001 --> 00:28:04,000 GENTLEMAN FROM MICHIGAN RISE? 883 00:28:04,001 --> 00:28:05,000 MR. PETER: I HAVE AN AMENDMENT AT THE DESK. 884 00:28:05,001 --> 00:28:06,000 THE CHAIR: THE CLERK WILL 885 00:28:06,001 --> 00:28:07,000 DESIGNATE THE AMENDMENT. 886 00:28:07,001 --> 00:28:08,000 THE CLERK: AMENDMENT NUMBER 16, 887 00:28:08,001 --> 00:28:10,000 PRINTED IN HOUSE REPORT NUMBER 888 00:28:10,001 --> 00:28:11,000 111- 889 00:28:11,001 --> 00:28:13,000 OF MICHIGAN. 890 00:28:13,001 --> 00:28:14,000 THE CHAIR: 891 00:28:14,001 --> 00:28:16,000 RESOLUTION 964, THE GENTLEMAN 892 00:28:16,001 --> 00:28:18,000 FROM MICHIGAN, MR. PETERS, AND 893 00:28:18,001 --> 00:28:21,000 CONTROL FIVE MINUTES. 894 00:28:21,001 --> 00:28:24,000 THE CHAIR RECOGNIZES THE GENTLEMAN FROM MICHIGAN. 895 00:28:24,001 --> 00:28:25,000 CHAIR. 896 00:28:25,001 --> 00:28:26,000 I YIELD MYSELF SUCH TIME AS I 897 00:28:26,001 --> 00:28:28,000 MAY CONSUME. THE CHAIR: WITHOUT OBJECTION. 898 00:28:28,001 --> 00:28:29,000 MR. PETERS: TODAY WE ARE 899 00:28:29,001 --> 00:28:31,000 DEBATING LEGISLATION THAT WILL 900 00:28:31,001 --> 00:28:34,000 END THE TOO BIG TO FAIL 901 00:28:34,001 --> 00:28:35,000 DOCTRINE AND PROVIDE A 902 00:28:35,001 --> 00:28:37,000 MECHANISM FOR ENSURING THAT IN 903 00:28:37,001 --> 00:28:39,000 THE FUTURE TAXPAYERS WILL NOT 904 00:28:39,001 --> 00:28:41,000 BE ASKED TO FOOT THE BILL TO 905 00:28:41,001 --> 00:28:43,000 CLEAN UP WALL STREET MISTAKES. 906 00:28:43,001 --> 00:28:44,000 MY AMENDMENT IMPROVES THIS 907 00:28:44,001 --> 00:28:49,000 LEGISLATION BY ENSURING THAT 908 00:28:49,001 --> 00:28:50,000 TAXPAYERS ARE NOT ASKED TO FOOT 909 00:28:50,001 --> 00:28:52,000 MISTAKES AS WELL. 910 00:28:52,001 --> 00:28:55,000 MY AMENDMENT WILL FIRMLY 911 00:28:55,001 --> 00:28:57,000 ESTABLISH THAT THE FINANCIAL 912 00:28:57,001 --> 00:28:58,000 INDUSTRY NOT 913 00:28:58,001 --> 00:29:01,000 RESPONSIBLE FOR MAKING UP ANY 914 00:29:01,001 --> 00:29:04,000 AND THE TARP PROGRAM WILL NOT 915 00:29:04,001 --> 00:29:06,000 ADD TO OUR DEFICITS OR NATIONAL 916 00:29:06,001 --> 00:29:08,000 DEBT. 917 00:29:08,001 --> 00:29:10,000 SECTION 134 OF THE EMERGENCY 918 00:29:10,001 --> 00:29:12,000 ECONOMIC STABILIZATION ACT OF 919 00:29:12,001 --> 00:29:14,000 2008 REQUIRES THE PRESIDENT TO 920 00:29:14,001 --> 00:29:16,000 IDENTIFY A MECHANISM FOR 921 00:29:16,001 --> 00:29:18,000 RECOVERING ANY SHORTFALLS IN 922 00:29:18,001 --> 00:29:20,000 TARP FUNDS AFTER FIVE YEARS SO 923 00:29:20,001 --> 00:29:22,000 AS NOT TO INCREASE THE BUDGET 924 00:29:22,001 --> 00:29:24,000 DEFICIT OR NATIONAL DEBT. 925 00:29:24,001 --> 00:29:26,000 HOWEVER THE MECHANISM FOR 926 00:29:26,001 --> 00:29:28,000 RECOUPING ANY SHORTFALL IS NOT 927 00:29:28,001 --> 00:29:31,000 IDENTIFIED. 928 00:29:31,001 --> 00:29:32,000 H.R. 4173 ALREADY EMPOWERS THE 929 00:29:32,001 --> 00:29:34,000 FDIC TO MAKE RISK-BASED 930 00:29:34,001 --> 00:29:37,000 ASSESSMENTS ON THE NATION'S 931 00:29:37,001 --> 00:29:38,000 LARGEST AND MOST SYSTEMICALLY 932 00:29:38,001 --> 00:29:41,000 RISKY FINANCIAL INSTITUTIONS 933 00:29:41,001 --> 00:29:42,000 THAT WILL BE USED TO CREATE A 934 00:29:42,001 --> 00:29:46,000 SYSTEMIC DISSOLUTION FUND USED 935 00:29:46,001 --> 00:29:47,000 TO SEIZE AND 936 00:29:47,001 --> 00:29:48,000 NONBANK FINANCIAL INSTITUTION 937 00:29:48,001 --> 00:29:51,000 IN THE FUTURE. 938 00:29:51,001 --> 00:29:52,000 ENSURING THE WILL BE NO MORE 939 00:29:52,001 --> 00:29:53,000 AD HOC BAILOUTS OF TOO BIG TO 940 00:29:53,001 --> 00:29:55,000 FAIL INSTITUTIONS. 941 00:29:55,001 --> 00:29:56,000 MY AMENDMENT WOULD GIVE THE 942 00:29:56,001 --> 00:29:58,000 FDIC AUTHORITY TO MAKE 943 00:29:58,001 --> 00:30:00,000 ADDITIONAL ASSESSMENTS TO THESE 944 00:30:00,001 --> 00:30:01,000 SAME LARGE FIRMS WHOSE 945 00:30:01,001 --> 00:30:02,000 EXCESSIVE RISK TAKING CAUSED 946 00:30:02,001 --> 00:30:04,000 THE CURRENT FINANCIAL CRISIS 947 00:30:04,001 --> 00:30:06,000 AND USE THOSE ASSESSMENTS TO 948 00:30:06,001 --> 00:30:08,000 PAY OFF ANY TARP SHORTFALLS AND 949 00:30:08,001 --> 00:30:09,000 ENSURE THAT THE TAXPAYERS ARE 950 00:30:09,001 --> 00:30:11,000 MADE WHOLE. 951 00:30:11,001 --> 00:30:12,000 MY AMENDME GIVES THE AMERICAN 952 00:30:12,001 --> 00:30:14,000 TAXPAYER CERTAINTY THAT ALL 953 00:30:14,001 --> 00:30:15,000 TARP FUNDS 954 00:30:15,001 --> 00:30:16,000 FROM THE LARGE FINANCIAL 955 00:30:16,001 --> 00:30:17,000 COMPANIES THAT CAUSED THIS 956 00:30:17,001 --> 00:30:20,000 FINANCIAL CRISIS. 957 00:30:20,001 --> 00:30:21,000 IT WOULD ALLOW CONGRESS TO SHOW 958 00:30:21,001 --> 00:30:24,000 THAT WE HAVE THE -- A PLAN IN 959 00:30:24,001 --> 00:30:25,000 PLACE FOR THE RECOOPERATE OF 960 00:30:25,001 --> 00:30:27,000 ANY SHORTFALL CONSISTENT WITH 961 00:30:27,001 --> 00:30:29,000 THE PROMISES MADE DURING THE 962 00:30:29,001 --> 00:30:30,000 DEBATE OVER THE EMERGENCY 963 00:30:30,001 --> 00:30:31,000 ECONOMIC STABILIZATION ACT. 964 00:30:31,001 --> 00:30:32,000 IT WILL ALSO ENSURE THAT THE 965 00:30:32,001 --> 00:30:33,000 AMERICAN PUBLIC UNDERSTANDS 966 00:30:33,001 --> 00:30:35,000 THAT WE ARE NOT TURNING THE 967 00:30:35,001 --> 00:30:37,000 PAGE ON TARP, BUT INSTEAD THAT 968 00:30:37,001 --> 00:30:39,000 WE HAVE A CLEAR AND DECISIVE 969 00:30:39,001 --> 00:30:41,000 PLANNER FOR MAKING SURE THAT 970 00:30:41,001 --> 00:30:42,000 TAXPAYERS ARE 971 00:30:42,001 --> 00:30:43,000 I RESERVE THE BALANCE OF MY 972 00:30:43,001 --> 00:30:53,000 TIME. 973 00:30:53,001 --> 00:30:54,000 . 974 00:30:54,001 --> 00:30:55,000 THE CHAIR: THE GENTLEMAN 975 00:30:55,001 --> 00:30:57,000 RESERVES. 976 00:30:57,001 --> 00:30:58,000 FOR WHAT PURPOSE DOES THE 977 00:30:58,001 --> 00:30:59,000 GENTLEMAN FROM TEXAS RISE? 978 00:30:59,001 --> 00:31:00,000 HELKSHELKS TO CLAIM TIME IN 979 00:31:00,001 --> 00:31:02,000 OPPOSITION. 980 00:31:02,001 --> 00:31:03,000 THE CHAIR: WITHOUT OBJECTION, 981 00:31:03,001 --> 00:31:04,000 THE GENTLEMAN IS RECOGNIZED FOR 982 00:31:04,001 --> 00:31:06,000 FIVE MINUTES. 983 00:31:06,001 --> 00:31:07,000 MR. HENSARLING: IF THIS BODY 984 00:31:07,001 --> 00:31:08,000 REALLY CARES ABOUT PROTECTING 985 00:31:08,001 --> 00:31:10,000 THE TAXPAYER AGAINST LOSSES IN 986 00:31:10,001 --> 00:31:11,000 TARP, THEY WILL HAVE AN 987 00:31:11,001 --> 00:31:13,000 OPPORTUNITY TO SHOW IT LATER 988 00:31:13,001 --> 00:31:15,000 TODAY. AND THAT IS VOTE TO END THE 989 00:31:15,001 --> 00:31:16,000 TARP PROGRAM. 990 00:31:16,001 --> 00:31:18,000 NOW, WE CAN HAVE A DEBATE ABOUT 991 00:31:18,001 --> 00:31:20,000 WHAT TARP WAS, BUT THE MORE 992 00:31:20,001 --> 00:31:21,000 RELEVANT DEBATE IS WHAT TARP 993 00:31:21,001 --> 00:31:23,000 IS. 994 00:31:23,001 --> 00:31:26,000 AND TODAY TARP IS NOTHING MORE 995 00:31:26,001 --> 00:31:28,000 THAN $700 BILLION OF WALKING AROUND MONEY FOR THE 996 00:31:28,001 --> 00:31:30,000 ADMINISTRATION. 997 00:31:30,001 --> 00:31:33,000 IT'S A $700 BILLION REVOLVING 998 00:31:33,001 --> 00:31:35,000 BAILOUT FUND TO ADVANCE THE 999 00:31:35,001 --> 00:31:37,000 ADMINISTRATION'S POLITICAL, 1000 00:31:37,001 --> 00:31:39,000 SOCIAL AND ECONOMIC AGENDA. 1001 00:31:39,001 --> 00:31:40,000 AND IF YOU'RE CONCERN 1002 00:31:40,001 --> 00:31:43,000 PROTECTING THE TAXPAYER, WHY, 1003 00:31:43,001 --> 00:31:48,000 WHY WOULD YOU HAVE A PROVISION 1004 00:31:48,001 --> 00:31:50,000 THAT RAISES TARP FOR YET MORE 1005 00:31:50,001 --> 00:31:52,000 TAXPAYER FUNDED FORECLOSURE 1006 00:31:52,001 --> 00:31:54,000 MITIGATION PROGRAMS WHICH HAVE 1007 00:31:54,001 --> 00:31:59,000 BEEN PROVEN TO BE ABJECT 1008 00:31:59,001 --> 00:32:01,000 FAILURES. 1009 00:32:01,001 --> 00:32:03,000 -- FAILURES? 1010 00:32:03,001 --> 00:32:06,000 SO IF YOU ARE REALLY SERIOUS 1011 00:32:06,001 --> 00:32:08,000 ABOUT PROTECTING TAXPAYERS, PUT 1012 00:32:08,001 --> 00:32:10,000 YOUR VOTE WHERE YOUR SENTIMENT 1013 00:32:10,001 --> 00:32:12,000 IS AND VOTE LATER TODAY TO 1014 00:32:12,001 --> 00:32:15,000 SIMPLY END THE TARP PROGRAM IN 1015 00:32:15,001 --> 00:32:16,000 THE BAILOUTS. 1016 00:32:16,001 --> 00:32:18,000 BUT GIVEN THAT THE WHOLE REASON 1017 00:32:18,001 --> 00:32:19,000 OR BEING FOR THIS BILL IS A 1018 00:32:19,001 --> 00:32:21,000 PERPETUAL WALL STREET BAILOUT, 1019 00:32:21,001 --> 00:32:23,000 I'D SUSPECT, UNFORTUNATELY, 1020 00:32:23,001 --> 00:32:27,000 THAT WILL NOT OCCUR. 1021 00:32:27,001 --> 00:32:28,000 THE SECOND OINT I'D MAKE, 1022 00:32:28,001 --> 00:32:31,000 MADAM CHAIR, IS SOME OF THE 1023 00:32:31,001 --> 00:32:32,000 COMPANIES THAT RECEIVE FUNDS 1024 00:32:32,001 --> 00:32:34,000 UNDER THE CAPITAL PURCHASE 1025 00:32:34,001 --> 00:32:36,000 PROGRAM HAVE NOW REPAID THEM 1026 00:32:36,001 --> 00:32:42,000 BACK WITH INTEREST. 1027 00:32:42,001 --> 00:32:43,000 COMPANIES THAT ARE PROVEN 1028 00:32:43,001 --> 00:32:45,000 SUCCESSFUL AND PAID BACK THEIR 1029 00:32:45,001 --> 00:32:47,000 FUNDS, TAX THEM FOR FAILING 1030 00:32:47,001 --> 00:32:48,000 COMPANIES THAT DIDN'T PAY BACK 1031 00:32:48,001 --> 00:32:51,000 THEIRS. 1032 00:32:51,001 --> 00:32:52,000 YOU KNOW, 1033 00:32:52,001 --> 00:32:53,000 RECEIVED FUNDS UNDER TARP AND 1034 00:32:53,001 --> 00:32:55,000 FORD DIDN'T. 1035 00:32:55,001 --> 00:32:58,000 SO UNDER THIS I SUPPOSE THAT WE 1036 00:32:58,001 --> 00:33:01,000 CAN ASSESS FORD A TAX TO PAY 1037 00:33:01,001 --> 00:33:03,000 FOR LOSSES THE TAXPAYERS WILL 1038 00:33:03,001 --> 00:33:04,000 INCUR ON G.M. AND CHRYSLER. 1039 00:33:04,001 --> 00:33:07,000 AND WE KNOW THAT G.M. AND 1040 00:33:07,001 --> 00:33:09,000 CH QUOTE-UNQUOTE FINANCIAL 1041 00:33:09,001 --> 00:33:10,000 INSTITUTIONS UNDER THE TARP 1042 00:33:10,001 --> 00:33:13,000 STATUTE SO THEREFORE, FORD CAN 1043 00:33:13,001 --> 00:33:15,000 BE TAXED UNDER THE GENTLEMAN'S 1044 00:33:15,001 --> 00:33:17,000 IS THAT SMART? 1045 00:33:17,001 --> 00:33:18,000 IS THAT FAIR? 1046 00:33:18,001 --> 00:33:21,000 THE ANSWER IS NO. 1047 00:33:21,001 --> 00:33:23,000 THIS IS YET ANOTHER TAX TO GO 1048 00:33:23,001 --> 00:33:24,000 ON CAPITAL. 1049 00:33:24,001 --> 00:33:26,000 YOU CAN'T HAVE CAPITALISM 1050 00:33:26,001 --> 00:33:29,000 WITHOUT CAPITAL. 1051 00:33:29,001 --> 00:33:32,000 AND SO WE HAVE $150 BILLION TAX 1052 00:33:32,001 --> 00:33:37,000 FOR THE REVOLVING BAILOUT FUND. 1053 00:33:37,001 --> 00:33:40,000 WE HAVE AN UNLIMITED TAX BY THE 1054 00:33:40,001 --> 00:33:42,000 NEW CZAR TO BAN AND RATION 1055 00:33:42,001 --> 00:33:43,000 CONSUMER CREDIT PRO 1056 00:33:43,001 --> 00:33:45,000 CAN TOUCH SMALL BUSINESSES 1057 00:33:45,001 --> 00:33:47,000 THROUGHOUT OUR NATION. 1058 00:33:47,001 --> 00:33:50,000 EVERY TIME YOU INCREASE THE 1059 00:33:50,001 --> 00:33:54,000 COST OF TAXES ON CAPITAL, YOU 1060 00:33:54,001 --> 00:33:56,000 GET LESS LENDING, YOU GETESS 1061 00:33:56,001 --> 00:33:58,000 CREDIT, MOR 1062 00:33:58,001 --> 00:34:00,000 AND LESS CREDIT IS FEWER JOBS. 1063 00:34:00,001 --> 00:34:03,000 I WOULD THINK, I WOULD THINK AT 1064 00:34:03,001 --> 00:34:05,000 A TIME WHEN OUR 1065 00:34:05,001 --> 00:34:07,000 HIGHEST UNEMPLOYMENT RATE IN A 1066 00:34:07,001 --> 00:34:09,000 GENERATION THAT THIS IS AN 1067 00:34:09,001 --> 00:34:11,000 INSTITUTION THAT WOULD BE TRYING TO CREATE MORE JOBS, 1068 00:34:11,001 --> 00:34:13,000 TRYING TO CREATE MORE CAPITAL, 1069 00:34:13,001 --> 00:34:15,000 TRYING TO HAVE SMALL BUSINESSES 1070 00:34:15,001 --> 00:34:17,000 ACCESS POOLS OF CAPITAL, AND 1071 00:34:17,001 --> 00:34:19,000 ALL WE DO IS SEE MORE 1072 00:34:19,001 --> 00:34:21,000 LEGISLATION AND MORE AMENDMENTS 1073 00:34:21,001 --> 00:34:25,000 TO MAKE CAPITAL LESS AVAILABLE 1074 00:34:25,001 --> 00:34:27,000 BUSINESSES. 1075 00:34:27,001 --> 00:34:28,000 THIS -- EXPSIVE TO OUR SMALL 1076 00:34:28,001 --> 00:34:29,000 BUSINESSES. 1077 00:34:29,001 --> 00:34:31,000 THIS AMENDMENT MUST BE 1078 00:34:31,001 --> 00:34:32,000 REJECTED. 1079 00:34:32,001 --> 00:34:33,000 I RESERVE THE BALANCE OF MY 1080 00:34:33,001 --> 00:34:34,000 TIME. 1081 00:34:34,001 --> 00:34:36,000 THE CHAIR: THE GENTLEMAN 1082 00:34:36,001 --> 00:34:38,000 RESERVES. 1083 00:34:38,001 --> 00:34:39,000 RECOGNIZED. 1084 00:34:39,001 --> 00:34:40,000 MR. PETERS: THANK YOU, MADAM 1085 00:34:40,001 --> 00:34:42,000 SPEAKER. 1086 00:34:42,001 --> 00:34:43,000 I'D LIKE YIELD A MINUTE 30 1087 00:34:43,001 --> 00:34:44,000 TO THE GENTLEMAN FROM MICHIGAN, 1088 00:34:44,001 --> 00:34:51,000 MR. SHOUR. 1089 00:34:51,001 --> 00:34:53,000 -- MR. SH THE CHAIR: THE GENTLEMAN IS 1090 00:34:53,001 --> 00:34:54,000 RECOGNIZED. 1091 00:34:54,001 --> 00:34:55,000 >> WE WERE TOLD WHAT'S GOOD FOR 1092 00:34:55,001 --> 00:34:57,000 WALL STREET IS GOOD FOR MAIN 1093 00:34:57,001 --> 00:34:58,000 STREET. 1094 00:34:58,001 --> 00:34:59,000 THE BENEFITS ARE SUPPOSED TO 1095 00:34:59,001 --> 00:35:01,000 TRICKLE DOWN. 1096 00:35:01,001 --> 00:35:02,000 THE ONLY PEOPLE THE GENTLEMAN 1097 00:35:02,001 --> 00:35:03,000 FROM MICHIGAN HAS SEEN IS IT 1098 00:35:03,001 --> 00:35:06,000 TRICKLE OUT OF REACH. 1099 00:35:06,001 --> 00:35:07,000 IT HAS LEFT MY STATE WITH A 15% 1100 00:35:07,001 --> 00:35:08,000 UNEMPLOYMENT RATE. 1101 00:35:08,001 --> 00:35:10,000 LAST FALL WALL STREET SAID THEY 1102 00:35:10,001 --> 00:35:12,000 NEED TO BORROW $700 BILLION 1103 00:35:12,001 --> 00:35:14,000 ROM TAXPAYERS TO PAY FOR OVER 1104 00:35:14,001 --> 00:35:19,000 THEIR LOSSES. 1105 00:35:19,001 --> 00:35:21,000 MICHIGANERS WERE SUPPORTSED TO 1106 00:35:21,001 --> 00:35:22,000 OPEN UP THEIR WALLETS TO WALL 1107 00:35:22,001 --> 00:35:24,000 STREET BANKS. 1108 00:35:24,001 --> 00:35:27,000 THEY HAVE STOPPED LENDING TO MICHIGAN HOMEOWNERS AND 1109 00:35:27,001 --> 00:35:28,000 MICHIGAN BUSINESSES. 1110 00:35:28,001 --> 00:35:30,000 EMPLOYERS CAN'T GET LOANS THEY 1111 00:35:30,001 --> 00:35:32,000 NEED TO BRING EMPLOYEES BACK TO 1112 00:35:32,001 --> 00:35:33,000 WORK. 1113 00:35:33,001 --> 00:35:34,000 TARP HAS PERFORMED BETTER THAN 1114 00:35:34,001 --> 00:35:35,000 EXPECTED BUT THEY STILL EXPECT 1115 00:35:35,001 --> 00:35:37,000 TO LOSE TAXPAYER DOLLARS. 1116 00:35:37,001 --> 00:35:39,000 WE STILL DO NOT HAVE A 1117 00:35:39,001 --> 00:35:41,000 GUARANTEE THAT THE BAILED OUT 1118 00:35:41,001 --> 00:35:43,000 FINANCIAL INDUSTRY WILL 1119 00:35:43,001 --> 00:35:46,000 ACTUALLY REPAY TAXPAYERS FOR 1120 00:35:46,001 --> 00:35:48,000 MR. PETERS HAS OFFERED AN 1121 00:35:48,001 --> 00:35:50,000 EXCELLENT AMENDMENT TO ENSURE 1122 00:35:50,001 --> 00:35:52,000 AMERICAN TAXPAYERS WILL GET 1123 00:35:52,001 --> 00:35:53,000 THEIR MONEY BACK AND THAT THOSE 1124 00:35:53,001 --> 00:35:54,000 THAT CREATED THIS MESS WILL 1125 00:35:54,001 --> 00:35:56,000 PICK UP THE TAB. 1126 00:35:56,001 --> 00:35:59,000 THIS AMENDME 1127 00:35:59,001 --> 00:36:02,000 TO MAKE ADDITIONAL ASSESSMENTS 1128 00:36:02,001 --> 00:36:04,000 ON THE NATION'S LARGEST, MOST 1129 00:36:04,001 --> 00:36:06,000 SYSTEMICALLY RISKY FINANCIAL 1130 00:36:06,001 --> 00:36:08,000 INSTITUTIONS TO PAY BACK THIS 1131 00:36:08,001 --> 00:36:09,000 TARP MONEY. 1132 00:36:09,001 --> 00:36:12,000 THIS AMENDMENT FINALLY PUTS IN 1133 00:36:12,001 --> 00:36:13,000 PLACE A PLAN FOR WALL STREET TO 1134 00:36:13,001 --> 00:36:14,000 PAY BACK ITS LOAN. 1135 00:36:14,001 --> 00:36:17,000 THIS IS COMMON SENS 1136 00:36:17,001 --> 00:36:18,000 THOSE INSTITUTIONS RESPONSIBLE 1137 00:36:18,001 --> 00:36:20,000 FOR THE COLLAPSE SHOULD AT 1138 00:36:20,001 --> 00:36:21,000 LEAS 1139 00:36:21,001 --> 00:36:22,000 THE CHAIR: THE GENTLEMAN'S TIME 1140 00:36:22,001 --> 00:36:24,000 HAS EXPIRED. 1141 00:36:24,001 --> 00:36:25,000 MR. SCHAUER: I YIELD BACK. 1142 00:36:25,001 --> 00:36:28,000 THE CHAIR: FOR WHAT PURPOSE 1143 00:36:28,001 --> 00:36:31,000 DOES -- THE GE TEXAS IS RECOGNIZED. 1144 00:36:31,001 --> 00:36:33,000 MR. HENSARLING: I SERVE. THE CHAIR: THE GENTLEMAN 1145 00:36:33,001 --> 00:36:34,000 RESERVES. 1146 00:36:34,001 --> 00:36:36,000 THE GENTLEMAN FROM MICHIGAN IS 1147 00:36:36,001 --> 00:36:37,000 RECOGNIZED. 1148 00:36:37,001 --> 00:36:38,000 MR. PETERS: MADAM SPEAKER, I'D 1149 00:36:38,001 --> 00:36:40,000 LIKE T 1150 00:36:40,001 --> 00:36:42,000 SECONDS TO THE GENTLEMAN FROM VIRGINIA, MR. CONNELLY. 1151 00:36:42,001 --> 00:36:43,000 THE CHAIR: THE GENTLEMAN HAS 1152 00:36:43,001 --> 00:36:45,000 ONE MINUTE REMAING. 1153 00:36:45,001 --> 00:36:46,000 MR. CONNELLY: THANK YOU, MADAM 1154 00:36:46,001 --> 00:36:48,000 CHAIR. 1155 00:36:48,001 --> 00:36:49,000 THE CHAIR: THE GENTLEMAN FROM 1156 00:36:49,001 --> 00:36:50,000 VIRGINIA IS RECOGNIZED FOR ONE 1157 00:36:50,001 --> 00:36:52,000 MINUTE. 1158 00:36:52,001 --> 00:36:54,000 MR. CONNELLY: THE HOUSE W ENACT THE MOST SIGNIFICANT 1159 00:36:54,001 --> 00:36:56,000 REFORM OF OUR FINANCIAL SYSTEM 1160 00:36:56,001 --> 00:36:57,000 SINCE THE GREAT DEPRESSION. 1161 00:36:57,001 --> 00:36:58,000 THESE ARE NOT DECISIONS WE TAKE 1162 00:36:58,001 --> 00:37:00,000 LIGHTLY BUT THE PROLONGED 1163 00:37:00,001 --> 00:37:01,000 RECESSION AND THE NEAR COLLAPSE 1164 00:37:01,001 --> 00:37:02,000 OF THE FINANCIAL MARKET IN THE 1165 00:37:02,001 --> 00:37:03,000 FALL OF 2008 HAVE COMPELLED US 1166 00:37:03,001 --> 00:37:05,000 TO RESPON 1167 00:37:05,001 --> 00:37:06,000 IT WILL ALSO END THE ERA OF 1168 00:37:06,001 --> 00:37:07,000 TAXPAYER NDED BAILOUTS. 1169 00:37:07,001 --> 00:37:08,000 MADAM CHAIR WOMAN, THIS 1170 00:37:08,001 --> 00:37:10,000 AMENDMENT OFFERED BY MY FRIEND 1171 00:37:10,001 --> 00:37:12,000 AND COLLEAGUE, 1172 00:37:12,001 --> 00:37:14,000 MICHIGAN, SEEKS TO BUILD ON THIS LEGISLATION AND WILL 1173 00:37:14,001 --> 00:37:15,000 AUTHORIZE THE FDIC TO MAKE 1174 00:37:15,001 --> 00:37:17,000 FURTHER ASSESSMENTS IN THE 1175 00:37:17,001 --> 00:37:19,000 FINANCIAL INDUSTRY TO ENSURE 1176 00:37:19,001 --> 00:37:20,000 EVERY PENNY OF THE TARP LOANS 1177 00:37:20,001 --> 00:37:22,000 MADE TO THE BANKS IS REPAID AND 1178 00:37:22,001 --> 00:37:23,000 HELP REDUCE OUR NATION'S DEBT 1179 00:37:23,001 --> 00:37:24,000 AND BURDEN ON THE TAXPAYERS. 1180 00:37:24,001 --> 00:37:26,000 I URGE ADOPTION OF THE 1181 00:37:26,001 --> 00:37:31,000 AMENDMENT, MADAM CHAIR WOMAN, 1182 00:37:31,001 --> 00:37:33,000 AND I YIELD BACK. THE CHAIR: THE GENTLEMAN 1183 00:37:33,001 --> 00:37:34,000 YIELDS. 1184 00:37:34,001 --> 00:37:35,000 THE GENTLEMAN FROM TEXAS IS 1185 00:37:35,001 --> 00:37:36,000 RECOGNIZED. 1186 00:37:36,001 --> 00:37:38,000 MR. HENSARLING: THE GENTLEM 1187 00:37:38,001 --> 00:37:39,000 RESERVES. THE CHAIR: THE GENTLEMAN 1188 00:37:39,001 --> 00:37:41,000 RESERVES. 1189 00:37:41,001 --> 00:37:43,000 THE GENTLEMAN FROM MICHIGAN HAS 1190 00:37:43,001 --> 00:37:44,000 30 SECONDS REMAINING. 1191 00:37:44,001 --> 00:37:45,000 MR. PETERS: THANK YOU, MADAM 1192 00:37:45,001 --> 00:37:46,000 CHAIR. 1193 00:37:46,001 --> 00:37:48,000 THE ANDMENT BEFORE US IS A 1194 00:37:48,001 --> 00:37:49,000 MMONSENSE ATTEMPT TO MAKE 1195 00:37:49,001 --> 00:37:50,000 SURE WE COUP TO THE TAXPAYERS 1196 00:37:50,001 --> 00:37:52,000 THE MONEY THAT HAS BEEN LONDON 1197 00:37:52,001 --> 00:37:54,000 TO THE FINANCIAL INDUSTRY. THE GENTLEMAN FROM TEXAS 1198 00:37:54,001 --> 00:37:56,000 MENTIONS THAT WE SHOULD JUST 1199 00:37:56,001 --> 00:37:57,000 END TARP, BUT THAT DOESN'T 1200 00:37:57,001 --> 00:37:58,000 RELIEVE US OF THE FACT THAT WE 1201 00:37:58,001 --> 00:38:00,000 GOT $140 BILLION THAT NEEDS TO 1202 00:38:00,001 --> 00:38:01,000 BE PAID BACK. 1203 00:38:01,001 --> 00:38:02,000 AND SO IT'S NOT A LIABILITY ON 1204 00:38:02,001 --> 00:38:03,000 THE TAXPAYERS. 1205 00:38:03,001 --> 00:38:05,000 THIS IS A WAY IN WHICH WE CAN 1206 00:38:05,001 --> 00:38:07,000 RECOUP THE MONEY FROM THE FINANCIAL INSTITUTIONS, THE 1207 00:38:07,001 --> 00:38:09,000 VERY INSTITUTIONS THAT WERE 1208 00:38:09,001 --> 00:38:11,000 RESPONSIBLE FOBRINGING THIS FINANCIAL MELTDOWN TO OUR 1209 00:38:11,001 --> 00:38:13,000 COUNTRY AND THE PROBLEM 1210 00:38:13,001 --> 00:38:14,000 HAVE IMPACTED MY STATE AND 1211 00:38:14,001 --> 00:38:15,000 STATES ALL ACROSS THIS COUNTRY. 1212 00:38:15,001 --> 00:38:17,000 THIS IS A COMMONSENSE APPROACH, 1213 00:38:17,001 --> 00:38:18,000 AND I URGE ADOPTION. 1214 00:38:18,001 --> 00:38:20,000 THE CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED. 1215 00:38:20,001 --> 00:38:21,000 THE GENTLEMAN FROM TEXAS IS 1216 00:38:21,001 --> 00:38:23,000 RECOGNIZED. 1217 00:38:23,001 --> 00:38:24,000 MR. HENSARLING: MADAM CHAIR, 1218 00:38:24,001 --> 00:38:25,000 WHAT IS COMMON SENSE IS TO 1219 00:38:25,001 --> 00:38:27,000 TERMINATE TARP, STOP IT BEFORE 1220 00:38:27,001 --> 00:38:28,000 IT CAN SPEND AGAIN. 1221 00:38:28,001 --> 00:38:29,000 AND I HEAR ALL THIS WONDERFUL 1222 00:38:29,001 --> 00:38:31,000 RHETORIC ABOUT, WELL, SOMEHOW 1223 00:38:31,001 --> 00:38:32,000 WE'RE GOING TO TAX WALL STREET 1224 00:38:32,001 --> 00:38:34,000 FOR ALL OF THIS. 1225 00:38:34,001 --> 00:38:38,000 BUT LOOK AT THE TARP PROGRAM. 1226 00:38:38,001 --> 00:38:40,000 LOOK AT THE TAXPAYER-FUNDED 1227 00:38:40,001 --> 00:38:43,000 RECLOSURE MITIGATION PROGRAM, 1228 00:38:43,001 --> 00:38:44,000 ALL OF WHICH HAVE BEEN 1229 00:38:44,001 --> 00:38:46,000 FAILURES WHICH THE TAXPAYER 1230 00:38:46,001 --> 00:38:47,000 RECEIVES ZERO, ZERO OF HIS 1231 00:38:47,001 --> 00:38:49,000 MONEY BACK. 1232 00:38:49,001 --> 00:38:51,000 AND SO THIS AGAIN IS JUST ONE 1233 00:38:51,001 --> 00:38:54,000 MORE WAY TO ASSESS A GREATER 1234 00:38:54,001 --> 00:38:56,000 TAX, A GREATER COST ON CAPITAL. 1235 00:38:56,001 --> 00:38:59,000 WHEN SMALL BUSINESSES HAVE SEEN 1236 00:38:59,001 --> 00:39:00,000 THEIR CREDIT LINES SHRUNK, 1237 00:39:00,001 --> 00:39:02,000 WITHDRAWN. 1238 00:39:02,001 --> 00:39:03,000 JOBS ARE BEING LOST ALL OVER 1239 00:39:03,001 --> 00:39:06,000 THE NATION. 1240 00:39:06,001 --> 00:39:09,000 AND SO HERE'S ONE MORE IDEA TO 1241 00:39:09,001 --> 00:39:12,000 FRANKLY KEEP TARP GOING AND 1242 00:39:12,001 --> 00:39:14,000 AGAIN IF PEOPLE WANT TO PUT 1243 00:39:14,001 --> 00:39:16,000 THEIR SENTIMENT -- PUT THEIR 1244 00:39:16,001 --> 00:39:17,000 VOTE WHERE THEIR SENTIMENT IS, 1245 00:39:17,001 --> 00:39:19,000 THEY'LL HAVE AN OPPORTUNITY TO 1246 00:39:19,001 --> 00:39:21,000 DO IT LATER TODAY. AND IT'S A FUNDAMENTAL 1247 00:39:21,001 --> 00:39:22,000 DIFFERENCE BETWEEN THE TWO 1248 00:39:22,001 --> 00:39:24,000 APPROACHES. 1249 00:39:24,001 --> 00:39:25,000 AND THAT IS OUR FRIENDS ON THE 1250 00:39:25,001 --> 00:39:26,000 OTHER SIDE OF THE AISLE STILL 1251 00:39:26,001 --> 00:39:30,000 WANT A PERPETUAL BAILOUT. 1252 00:39:30,001 --> 00:39:31,000 AS I'VE SAID EARLIER, IF THERE 1253 00:39:31,001 --> 00:39:32,000 WAS TRUTH IN ADVERTISIN 1254 00:39:32,001 --> 00:39:34,000 BILL BEFORE US WOULD BE NAMED 1255 00:39:34,001 --> 00:39:36,000 THE PERMANENT WALL STREET 1256 00:39:36,001 --> 00:39:39,000 BAILOUT AND INCREASE JOB LOSSES 1257 00:39:39,001 --> 00:39:41,000 THROUGH CREDIT RATIONING ACT OF 1258 00:39:41,001 --> 00:39:42,000 2009. 1259 00:39:42,001 --> 00:39:44,000 THE BEST WAY TO PROTECT THE 1260 00:39:44,001 --> 00:39:47,000 TAXPAYER IS TO END TARP, STOP 1261 00:39:47,001 --> 00:39:50,000 THE GRAB FOR OTHER PROGRAMS, 1262 00:39:50,001 --> 00:39:52,000 NOT TO INCREASE TAXES YET AGAIN 1263 00:39:52,001 --> 00:39:54,000 ON CAPITAL THAT IS VITALLY 1264 00:39:54,001 --> 00:39:55,000 NEED FOR OUR SMALL BUSINESSES 1265 00:39:55,001 --> 00:39:56,000 -- 1266 00:39:56,001 --> 00:39:58,000 THE CHAIR: THE GENTLEMAN'S TIME 1267 00:39:58,001 --> 00:39:59,000 HAS EXPIRED. 1268 00:39:59,001 --> 00:40:00,000 MR. HENSARLING: I YIELD BACK. 1269 00:40:00,001 --> 00:40:02,000 THE CHAIR: THE GENTLEMAN'S TIME 1270 00:40:02,001 --> 00:40:04,000 HAS EXPIRED. ALL TIME HAVING EXPIRED, THE 1271 00:40:04,001 --> 00:40:05,000 QUESTION IS ON THE AMENDMENT 1272 00:40:05,001 --> 00:40:07,000 OFFERED BY THE GENTLEMAN FROM 1273 00:40:07,001 --> 00:40:09,000 MICHIGAN. THOSE IN FAVOR SAY AYE. 1274 00:40:09,001 --> 00:40:10,000 THOSE OPPOSED, NO. 1275 00:40:10,001 --> 00:40:12,000 IN THE OPINION OF THE CHAIR, 1276 00:40:12,001 --> 00:40:13,000 THE AYES HAVE IT. 1277 00:40:13,001 --> 00:40:14,000 MR. HENSARLING: MADAM CHAIR. 1278 00:40:14,001 --> 00:40:16,000 ON THAT I -- 1279 00:40:16,001 --> 00:40:17,000 THE CHAIR: FOR WHAT PURPOSE DOES THE GENTLEMAN SEEK 1280 00:40:17,001 --> 00:40:19,000 RECOGNITION? 1281 00:40:19,001 --> 00:40:21,000 MR. HENSARLING: I ASK FOR THE 1282 00:40:21,001 --> 00:40:23,000 YEAS AND NAYS. THE CHAIR: DOES THE GENTLEMAN 1283 00:40:23,001 --> 00:40:24,000 ASK FOR A RECORDED VOTE? 1284 00:40:24,001 --> 00:40:26,000 MR. HENSARLING: I REQUEST A 1285 00:40:26,001 --> 00:40:27,000 RECORDED VOTE. 1286 00:40:27,001 --> 00:40:29,000 THE CHAIR: PURSUANT TO CLAUSE 6 1287 00:40:29,001 --> 00:40:30,000 OF RULE 18, FURTHER PROCEEDINGS 1288 00:40:30,001 --> 00:40:31,000 ON THE AMENDMENT OFFERED BY THE 1289 00:40:31,001 --> 00:40:32,000 GENTLEMAN FROM MICHIGAN WILL BE 1290 00:40:32,001 --> 00:40:35,000 POSTPONED. 1291 00:40:35,001 --> 00:40:36,000 IT IS NOW IN ORDER TO CONSIDER 1292 00:40:36,001 --> 00:40:39,000 AMENDMENT 1293 00:40:39,001 --> 00:40:41,000 HO 1294 00:40:41,001 --> 00:40:42,000 FOR WHAT PURPOSE DOES THE 1295 00:40:42,001 --> 00:40:46,000 GENTLEMAN FROM NORTH CAROLINA 1296 00:40:46,001 --> 00:40:47,000 MR. WATT: TO CLAIM THE TIME IN 1297 00:40:47,001 --> 00:40:49,000 THE CHAIR: DOES THE GENTLEMAN 1298 00:40:49,001 --> 00:40:50,000 OFFER THE AMENDMENT? MR. WATT: I OFFER THE 1299 00:40:50,001 --> 00:40:52,000 AMENDMENT. 1300 00:40:52,001 --> 00:40:54,000 T 1301 00:40:54,001 --> 00:40:56,000 THE CLERK: AMENDMENT NUMBER 17 1302 00:40:56,001 --> 00:40:57,000 PRINTED IN HOUSE REPORT 111-370 1303 00:40:57,001 --> 00:40:59,000 OFFERED BY MR. WATT OF NORTH 1304 00:40:59,001 --> 00:41:00,000 CAROLINA. 1305 00:41:00,001 --> 00:41:01,000 TH 1306 00:41:01,001 --> 00:41:03,000 RESOLUTION 964, THE GELEMAN 1307 00:41:03,001 --> 00:41:04,000 FROM NORTH CAROLINA, MR. WATT, 1308 00:41:04,001 --> 00:41:06,000 AND A MEMBER OPPOSED, EACH WILL 1309 00:41:06,001 --> 00:41:08,000 CONTROL FIVE MINUTES. 1310 00:41:08,001 --> 00:41:09,000 THE CHAIR RECOGNIZES THE 1311 00:41:09,001 --> 00:41:10,000 GENTLEMAN FROM NORTH CAROLINA. 1312 00:41:10,001 --> 00:41:11,000 MR. WATT: THANK YOU, MADAM 1313 00:41:11,001 --> 00:41:13,000 CHAIR. 1314 00:41:13,001 --> 00:41:14,000 I YIELD MYSELF 3 1/2 MINUTES. 1315 00:41:14,001 --> 00:41:15,000 THE CHAIR: THE GENTLEMAN IS 1316 00:41:15,001 --> 00:41:16,000 RECOGNIZED. 1317 00:41:16,001 --> 00:41:18,000 MR. WATT: MADAM CHAIR, LET ME 1318 00:41:18,001 --> 00:41:21,000 SAY AT THE OUTSET THAT IS MY 1319 00:41:21,001 --> 00:41:22,000 INTENTION THAT THE END OF THE 1320 00:41:22,001 --> 00:41:24,000 SHORT DISCUSSION AND I ASK 1321 00:41:24,001 --> 00:41:25,000 UNANIM 1322 00:41:25,001 --> 00:41:28,000 THE AMENDMENT, BUT I THOUGHT IT 1323 00:41:28,001 --> 00:41:31,000 WOULD BE ENLIGHTENING TO 1324 00:41:31,001 --> 00:41:33,000 COLLEAGUES AND TO WHOEVER ELSE 1325 00:41:33,001 --> 00:41:34,000 MIGHT BE LISTENING AT THIS TIME 1326 00:41:34,001 --> 00:41:37,000 IN THE MORNING TO TALK ABOUT 1327 00:41:37,001 --> 00:41:39,000 SOME OF THE PRACTICAL PROBLEMS 1328 00:41:39,001 --> 00:41:43,000 THAT YOU HAVE EVEN WHEN 1329 00:41:43,001 --> 00:41:48,000 BROAD AGREEMENT ON AN ISSUE. 1330 00:41:48,001 --> 00:41:49,000 AND I'LL DESCRIBE THE PROCESS 1331 00:41:49,001 --> 00:41:52,000 BOTH MR. CAMPBELL, WHO IS A 1332 00:41:52,001 --> 00:41:55,000 MEMBER OF THE COMMITTEE, AND I 1333 00:41:55,001 --> 00:41:57,000 AGREEHAT AUTOMOBILE DEALERS 1334 00:41:57,001 --> 00:42:03,000 OUGHT TO BE EXEMPT IN THEIR 1335 00:42:03,001 --> 00:42:05,000 PRIMARY DUTIES FROM THE CFPA, 1336 00:42:05,001 --> 00:42:06,000 THE CONSUMER FINANCIAL 1337 00:42:06,001 --> 00:42:08,000 PROTECTION AGENCY SUPERVISION 1338 00:42:08,001 --> 00:42:10,000 AND WHAT HAVE YOU. 1339 00:42:10,001 --> 00:42:11,000 AND THERE WAS BROAD BIPARTISAN 1340 00:42:11,001 --> 00:42:14,000 AND PHILOSOPHICAL AGREEMENT ON 1341 00:42:14,001 --> 00:42:16,000 THAT GENERAL PROPOSITION IN THE 1342 00:42:16,001 --> 00:42:17,000 COMMITTEE WHEN MR. CAMPBELL 1343 00:42:17,001 --> 00:42:19,000 OFFERED HIS AMENDMENT. 1344 00:42:19,001 --> 00:42:21,000 AND THERE WAS BROAD AGREEMEN 1345 00:42:21,001 --> 00:42:23,000 THAT THERE WAS SOME PRACTICAL 1346 00:42:23,001 --> 00:42:26,000 PROBLEMS WITH THE WAY THE 1347 00:42:26,001 --> 00:42:28,000 AMENDMENT WAS WRITTEN. 1348 00:42:28,001 --> 00:42:30,000 AND THE CHAIR 1349 00:42:30,001 --> 00:42:33,000 ME AND TO MR. CAMPBELL THE 1350 00:42:33,001 --> 00:42:34,000 RESPONSIBILITY TO TRY TO FIND 1351 00:42:34,001 --> 00:42:36,000 THE RIGHT LANGUAGE. 1352 00:42:36,001 --> 00:42:38,000 AND WE SET ABOUT TRYING TO DO 1353 00:42:38,001 --> 00:42:39,000 THAT. 1354 00:42:39,001 --> 00:42:42,000 AND WE HAVE BEEN DILIGENTLY 1355 00:42:42,001 --> 00:42:45,000 TRYING TO DO THAT. 1356 00:42:45,001 --> 00:42:48,000 THEN, THE PRACTICAL PROBLEMS 1357 00:42:48,001 --> 00:42:52,000 HER PEOPLE GET THEIR FINGERS 1358 00:42:52,001 --> 00:42:54,000 IN T POT AND SUGGEST 1359 00:42:54,001 --> 00:42:57,000 DIFFERENT I 1360 00:42:57,001 --> 00:43:01,000 BE RESOLVED. 1361 00:43:01,001 --> 00:43:02,000 MR. CAMPBELL AND I ON A 1362 00:43:02,001 --> 00:43:07,000 NIGHT WITH HIM IN CALIFORNIA 1363 00:43:07,001 --> 00:43:08,000 AND ME IN NORTH CAROLINA ON OUR 1364 00:43:08,001 --> 00:43:10,000 CELL PHONES HAVING CONVERSATION 1365 00:43:10,001 --> 00:43:12,000 AND WE ARE RIGHT AT THE VERGE 1366 00:43:12,001 --> 00:43:15,000 OF REACHING AN AGREEMENT, WE 1367 00:43:15,001 --> 00:43:16,000 THINK, AND WE'RE QUIBBLING 1368 00:43:16,001 --> 00:43:18,000 ABOUT WORDS. 1369 00:43:18,001 --> 00:43:20,000 AND THEN HE GETS CALLED AWAY TO 1370 00:43:20,001 --> 00:43:21,000 THE U.S.C. FOOTBALL GAME THE 1371 00:43:21,001 --> 00:43:24,000 NEXT DAY AND I GET CALLED THE 1372 00:43:24,001 --> 00:43:26,000 FOLLOWING DAY TO THE CAROLINA 1373 00:43:26,001 --> 00:43:28,000 PANTHER FOOTBALL GAME. 1374 00:43:28,001 --> 00:43:30,000 AND THEN WE'RE RIGHT UP AGAINST 1375 00:43:30,001 --> 00:43:31,000 A DEADLINE AND THEN WE FIND OUT 1376 00:43:31,001 --> 00:43:32,000 THAT THE CHAIRMAN HAS OFFERED A 1377 00:43:32,001 --> 00:43:35,000 MANAGER'S AMENDMENT THAT TEELS 1378 00:43:35,001 --> 00:43:36,000 WITH PART OF THE PROBLEM -- 1379 00:43:36,001 --> 00:43:38,000 DEALS WITH PART OF THE PROBLEM 1380 00:43:38,001 --> 00:43:39,000 AND NOT ALL OF IT AND WE BOTH 1381 00:43:39,001 --> 00:43:41,000 SUBMITTED AMENDMENTS TO THE 1382 00:43:41,001 --> 00:43:42,000 RULES COMMITTEE. MR. CAMPBELL WITHDRAWS MY 1383 00:43:42,001 --> 00:43:44,000 AMENDMENT. 1384 00:43:44,001 --> 00:43:46,000 MINE IS STILL STANDING, AND 1385 00:43:46,001 --> 00:43:47,000 WE'RE STILL TALKING ABOUT THE 1386 00:43:47,001 --> 00:43:49,000 AMENDMENT. 1387 00:43:49,001 --> 00:43:51,000 AND THEN THE AUTOBILE 1388 00:43:51,001 --> 00:43:53,000 DEALERS, BECAUSE THEY DON'T 1389 00:43:53,001 --> 00:43:56,000 LIKE MY AMENDMENT, DECIDE THAT 1390 00:43:56,001 --> 00:43:57,000 THEY NEED TO LOBBY AGAINST IT 1391 00:43:57,001 --> 00:43:58,000 AND MAKE IT SOUND LIKE I'M 1392 00:43:58,001 --> 00:43:59,000 OPPOSED TO WHAT I WAS IN FAVOR 1393 00:43:59,001 --> 00:44:01,000 OF ALL ALONG. 1394 00:44:01,001 --> 00:44:02,000 SO WE'VE BEEN ATHIS FOR A 1395 00:44:02,001 --> 00:44:06,000 LONG TIME. 1396 00:44:06,001 --> 00:44:08,000 CAMPBELL AND I SAT DOWN AND 1397 00:44:08,001 --> 00:44:11,000 TALKED AGAIN AND DECIDED THAT 1398 00:44:11,001 --> 00:44:13,000 WE SHOULD NOT ALLOW THE PERFECT 1399 00:44:13,001 --> 00:44:14,000 TO BE THE ENEMY OF THE GOOD. 1400 00:44:14,001 --> 00:44:17,000 WHAT WE HAVE IN THE BILL WITH 1401 00:44:17,001 --> 00:44:19,000 THE MANAGER'S AMENDMENT 1402 00:44:19,001 --> 00:44:23,000 SUBSTANTIALLY ADVANCES THE 1403 00:44:23,001 --> 00:44:25,000 PROCESS. 1404 00:44:25,001 --> 00:44:26,000 WE ARE NOT THE ENOF THE 1405 00:44:26,001 --> 00:44:27,000 PROCESS ANYWAY. 1406 00:44:27,001 --> 00:44:29,000 THE SENATE IS GOING TO HAVE TO 1407 00:44:29,001 --> 00:44:32,000 DEAL WITH THIS. 1408 00:44:32,001 --> 00:44:34,000 AND BOTH OF US ARE STILL INTENT 1409 00:44:34,001 --> 00:44:38,000 ON THE PHILOSOPHY 1410 00:44:38,001 --> 00:44:40,000 AUTOMOBILE DEALERS OUGHT TO BE EXEMPT FROM CFPA. 1411 00:44:40,001 --> 00:44:43,000 WE AGREE ON THAT. 1412 00:44:43,001 --> 00:44:45,000 AND SO HERE WE ARE AND WE 1413 00:44:45,001 --> 00:44:49,000 THOUGHT IT WOULD BE HELPFUL TO 1414 00:44:49,001 --> 00:44:50,000 HAVE THIS DIALOGUE AND WITH 1415 00:44:50,001 --> 00:44:51,000 THAT I'LL RESERVE THE BALANCE 1416 00:44:51,001 --> 00:44:56,000 OF MY TIME. 1417 00:44:56,001 --> 00:44:57,000 . 1418 00:44:57,001 --> 00:44:59,000 THE CHAIR: THE GENTLEMAN IS RECOGNIZEDOR FIVE MINUTES. 1419 00:44:59,001 --> 00:45:00,000 MR. CAMPBELL: THANK YOU VERY MUCH. 1420 00:45:00,001 --> 00:45:02,000 I YIELD MYSELF SUCH TIME AS I 1421 00:45:02,001 --> 00:45:03,000 MAY CONSUME. 1422 00:45:03,001 --> 00:45:04,000 MAYBE I SHOULDN'T HAVE GONE TO 1423 00:45:04,001 --> 00:45:05,000 THAT FOOTBALL GAME BECAUSE THEY 1424 00:45:05,001 --> 00:45:06,000 LOST. 1425 00:45:06,001 --> 00:45:07,000 SO THAT WAS RATHER DEPRESSING. 1426 00:45:07,001 --> 00:45:09,000 I DON'T KNOW HOW THE CAROLINA 1427 00:45:09,001 --> 00:45:10,000 PANTHERS 1428 00:45:10,001 --> 00:45:11,000 THEY LOST, TOO. 1429 00:45:11,001 --> 00:45:12,000 ALL RIGHT. 1430 00:45:12,001 --> 00:45:15,000 BOTH OF US DIDN'T HAVE A 1431 00:45:15,001 --> 00:45:16,000 PARTIC 1432 00:45:16,001 --> 00:45:18,000 AS THE GENTLEMAN FROM NORTH 1433 00:45:18,001 --> 00:45:20,000 CAROLINA, MR. WATT, DESCRIBED 1434 00:45:20,001 --> 00:45:23,000 WE HAVE HAD DISCUSSIONS ON THIS 1435 00:45:23,001 --> 00:45:25,000 THING, BUT I -- HE HAS B 1436 00:45:25,001 --> 00:45:26,000 VERY 1437 00:45:26,001 --> 00:45:28,000 CONSTRUCTIVELY ON THIS. 1438 00:45:28,001 --> 00:45:29,000 IN FACT THE AMENDMENT THAT 1439 00:45:29,001 --> 00:45:31,000 THE LANGUAGE THAT IS IN THE 1440 00:45:31,001 --> 00:45:33,000 BILL NOW REFLECTS A NUMBER OF 1441 00:45:33,001 --> 00:45:35,000 DISCUSSIONS THAT THE GENTLEMAN 1442 00:45:35,001 --> 00:45:36,000 FROM NORTH CAROLINA MADE WHICH 1443 00:45:36,001 --> 00:45:38,000 CLARIFIED SOME THINGS THAT 1444 00:45:38,001 --> 00:45:39,000 WERE, FRANKLY, CONFUSING AND 1445 00:45:39,001 --> 00:45:41,000 CONFLICTING IN THEILL. 1446 00:45:41,001 --> 00:45:44,000 I APPRECIATE MR. WATT'S 1447 00:45:44,001 --> 00:45:46,000 CONSTRUCTIVE WORK ON THIS AND 1448 00:45:46,001 --> 00:45:48,000 ALL THAT HE HAS DONE WITH THIS. 1449 00:45:48,001 --> 00:45:49,000 YES, HE'S RIGHT. 1450 00:45:49,001 --> 00:45:50,000 SOMETIMES THESE THINGS GET VERY 1451 00:45:50,001 --> 00:45:52,000 COMPLICATED AND YOU SIT DOWN 1452 00:45:52,001 --> 00:45:54,000 AND TRY TO FIGURE OUT WHAT EXBE 1453 00:45:54,001 --> 00:45:57,000 ACTLY DOES THIS SAY? 1454 00:45:57,001 --> 00:45:59,000 I THINK WE 1455 00:45:59,001 --> 00:46:01,000 AGREEMENT THAT WHAT IS IN THE 1456 00:46:01,001 --> 00:46:04,000 BILL IS THE RIGHT THING. 1457 00:46:04,001 --> 00:46:05,000 THERE IS BROAD AGREEMENT AS THE 1458 00:46:05,001 --> 00:46:06,000 GENTLEMAN FROM NORTH CAROLINA 1459 00:46:06,001 --> 00:46:08,000 SUGGESTED WITH MYSELF, WITH 1460 00:46:08,001 --> 00:46:10,000 HIM, AND BROAD AGREEMENT IN 1461 00:46:10,001 --> 00:46:12,000 THIS HOUSE THAT AUTOMOBILE 1462 00:46:12,001 --> 00:46:13,000 DEALERS IN THE NORMAL COURSE OF 1463 00:46:13,001 --> 00:46:15,000 THEIR BUSINESS DO NOT LEND 1464 00:46:15,001 --> 00:46:16,000 MONEY AND ARE NOT FINANCIAL 1465 00:46:16,001 --> 00:46:18,000 INSTITUTIONS AND SHOULD NOT BE 1466 00:46:18,001 --> 00:46:19,000 SUBJECT TO THE ADDITIONAL 1467 00:46:19,001 --> 00:46:21,000 REGULATION OF THE CFPA. 1468 00:46:21,001 --> 00:46:23,000 IF, HOWEVER, THEY DO LEND MONEY 1469 00:46:23,001 --> 00:46:24,000 AND ACT LIKE FINANCIAL 1470 00:46:24,001 --> 00:46:25,000 INSTITUTIONS, THEN THEY WILL BE SUBJECT. 1471 00:46:25,001 --> 00:46:27,000 THAT'S WHAT THIS BILL SAYS. 1472 00:46:27,001 --> 00:46:29,000 IT IS THE RIGHT THING TO SAY. 1473 00:46:29,001 --> 00:46:30,000 I THINK WE HAVE REACHED A GOOD 1474 00:46:30,001 --> 00:46:32,000 CONCLUSION ON THIS. 1475 00:46:32,001 --> 00:46:33,000 I THANK THE GENTLEMAN FROM 1476 00:46:33,001 --> 00:46:35,000 NORTH CAROLINA VERY MUCH FOR 1477 00:46:35,001 --> 00:46:37,000 HIS VERY GOOD AND CONSTRUCTIVE 1478 00:46:37,001 --> 00:46:38,000 WORK 1479 00:46:38,001 --> 00:46:40,000 I RESERVE THE BALANCE OF MY 1480 00:46:40,001 --> 00:46:41,000 TIME. 1481 00:46:41,001 --> 00:46:42,000 THE CHAIR: THE GENTLEMAN RESERVES. 1482 00:46:42,001 --> 00:46:43,000 CAROLINA. 1483 00:46:43,001 --> 00:46:44,000 MR. WATT: I YIELD ONE MINUTE TO 1484 00:46:44,001 --> 00:46:45,000 THE CHAIR OF THE COMMITTEE. 1485 00:46:45,001 --> 00:46:46,000 THE CHAIR: THE GENTLEMAN FROM 1486 00:46:46,001 --> 00:46:48,000 MASSACHUSETTS IS RECOGNIZED. 1487 00:46:48,001 --> 00:46:50,000 MR. FRANK: I'M VERY APPRECIATE 1488 00:46:50,001 --> 00:46:52,000 WHYIVE OF TWO OF THE MOST 1489 00:46:52,001 --> 00:46:53,000 CONSTRUCTIVE MEMBERS OF THE 1490 00:46:53,001 --> 00:46:54,000 COMMITTEE, THE GENTLEMAN FROM 1491 00:46:54,001 --> 00:46:55,000 NORTH CAROLINA, THE GENTLEMAN 1492 00:46:55,001 --> 00:46:56,000 FROM CALIFORNIA HAVE BEEN 1493 00:46:56,001 --> 00:46:59,000 WORKING TOGETHER ON THIS. 1494 00:46:59,001 --> 00:47:02,000 WE HAVE A MIX HERE OF POLICY 1495 00:47:02,001 --> 00:47:03,000 DIFFERENCE, BUT THEN ALSO SOME 1496 00:47:03,001 --> 00:47:05,000 TECHNICAL QUESTIONS. 1497 00:47:05,001 --> 00:47:06,000 CLEARLY THERE WAS A DIFFERENCE 1498 00:47:06,001 --> 00:47:08,000 ON WHETHER OR NOT AUTO DEALERS 1499 00:47:08,001 --> 00:47:09,000 SHOULD GET CERTAIN KIND OF 1500 00:47:09,001 --> 00:47:10,000 EXEMPTION. 1501 00:47:10,001 --> 00:47:12,000 THE MAJORITY OF THE COMMITTEE 1502 00:47:12,001 --> 00:47:13,000 FELT THE AUTO DEALER SITUATION 1503 00:47:13,001 --> 00:47:14,000 WAS SUCH, I WOULD THINK 1504 00:47:14,001 --> 00:47:16,000 PROBABLY PARTICULARLY BECAUSE 1505 00:47:16,001 --> 00:47:19,000 OF THE STRESSES THEY UNFAIRLY 1506 00:47:19,001 --> 00:47:21,000 HAVE 1507 00:47:21,001 --> 00:47:23,000 BY THE CHAOS OF THE AUTO 1508 00:47:23,001 --> 00:47:25,000 INDUSTRY, THEY DID DESERVE SOMETHING. 1509 00:47:25,001 --> 00:47:26,000 ONE SUCH QUESTION WAS RESOLV 1510 00:47:26,001 --> 00:47:27,000 OF. 1511 00:47:27,001 --> 00:47:28,000 I WAS IN THE MINORITY ON THAT. 1512 00:47:28,001 --> 00:47:30,000 THERE WAS TECHNICAL ISSUES 1513 00:47:30,001 --> 00:47:32,000 ABOUT HOW TO WORK IT OUT. 1514 00:47:32,001 --> 00:47:33,000 I'M VERY PLEASED TWO OF MORE 1515 00:47:33,001 --> 00:47:34,000 THOUGHTFUL MEMBERS ARE 1516 00:47:34,001 --> 00:47:35,000 CONTINUING TO COLLABORATION ON THIS. 1517 00:47:35,001 --> 00:47:37,000 THE MANAGER'S AMENDMENT HAD 1518 00:47:37,001 --> 00:47:39,000 SOME IMPROVEMENT IN THE 1519 00:47:39,001 --> 00:47:42,000 SITUATION THAT WAS MUTUALLY AGREED TO. 1520 00:47:42,001 --> 00:47:43,000 THERE IS ROOM, I BELIEVE, FOR 1521 00:47:43,001 --> 00:47:44,000 FURTHER CONVERSATION AND 1522 00:47:44,001 --> 00:47:46,000 REFINEMENT. 1523 00:47:46,001 --> 00:47:47,000 SO I WANT TO EXPRESS FIRST 1524 00:47:47,001 --> 00:47:48,000 APPRECATE. 1525 00:47:48,001 --> 00:47:50,000 SECONDLY, MY WILLINGNESS TO THE 1526 00:47:50,001 --> 00:47:51,000 EXTENT MY ROLE AS CHAIR OF THE 1527 00:47:51,001 --> 00:47:52,000 COMMITTEE WOULD BE RELEVANT TO 1528 00:47:52,001 --> 00:47:55,000 TRY TO EFFECTUATE WHAT THEY 1529 00:47:55,001 --> 00:47:56,000 WORK OUT. 1530 00:47:56,001 --> 00:47:57,000 THE CHAIR: THE GENTLEMAN FROM 1531 00:47:57,001 --> 00:47:59,000 CALIFORN 1532 00:47:59,001 --> 00:48:00,000 CAMPBELL: I'LL CONTINUE TO 1533 00:48:00,001 --> 00:48:01,000 RESERVE. THE CHAIR: THE GENTLEMAN 1534 00:48:01,001 --> 00:48:02,000 RESERVES. 1535 00:48:02,001 --> 00:48:04,000 THE GENTLEMAN FROM NORTH CAROLINA IS RECOGNIZED. 1536 00:48:04,001 --> 00:48:06,000 MR. WATT: MADAM CHAIR, I'LL 1537 00:48:06,001 --> 00:48:07,000 JUST SAY IN CLOSING ONE OF THE 1538 00:48:07,001 --> 00:48:09,000 OTHER WONDERFUL THINGS THAT'S 1539 00:48:09,001 --> 00:48:10,000 COME OUT OF THIS, PRIOR TO 1540 00:48:10,001 --> 00:48:12,000 THIS, MR. CAMPBELL AND I NEVER 1541 00:48:12,001 --> 00:48:13,000 REALLY HAD AN OPPORTUNITY TO 1542 00:48:13,001 --> 00:48:14,000 ROLL UP OUR SLEEVES AND WORK ON 1543 00:48:14,001 --> 00:48:16,000 ISSUES TOGETHER. 1544 00:48:16,001 --> 00:48:17,000 IT'S BEEN A JOY TO WORK WITH 1545 00:48:17,001 --> 00:48:19,000 HIM. 1546 00:48:19,001 --> 00:48:21,000 AND HE'S BEEN VERY 1547 00:48:21,001 --> 00:48:23,000 I WANT TO RESERVE MYSELF ENOUGH 1548 00:48:23,001 --> 00:48:25,000 TIME TO ASK UNANIMOUS CONSENT TO WITHDRAW THE AMENDMENT. 1549 00:48:25,001 --> 00:48:28,000 I DON'T WANT TO 1550 00:48:28,001 --> 00:48:29,000 HE HAS THE LAST WORD. 1551 00:48:29,001 --> 00:48:31,000 THE CHAIR: THE GENTLEMAN FROM CALIFORNIA IS RECOGNIZED. 1552 00:48:31,001 --> 00:48:32,000 MR. CAMPBELL: THANK YOU, MADAM 1553 00:48:32,001 --> 00:48:34,000 CHAIR. 1554 00:48:34,001 --> 00:48:38,000 ENJOYED WORKING WITH YOU AS WELL. 1555 00:48:38,001 --> 00:48:40,000 I'M GLAD THAT WE ARE ABLE TO 1556 00:48:40,001 --> 00:48:41,000 WHEREWE ARE ON THIS AND LOOK 1557 00:48:41,001 --> 00:48:43,000 FORWARD TO WORKING IN THE 1558 00:48:43,001 --> 00:48:44,000 FUTURE AS THE BILL MOVES FORWARD. 1559 00:48:44,001 --> 00:48:45,000 I 1560 00:48:45,001 --> 00:48:46,000 TIME. 1561 00:48:46,001 --> 00:48:47,000 THE CHAIR: THE GENTLEMAN YIELDS 1562 00:48:47,001 --> 00:48:48,000 . WATT: WITH THAT I ASK 1563 00:48:48,001 --> 00:48:49,000 UNANIMOUS CONSENT TO WITHDRAW 1564 00:48:49,001 --> 00:48:51,000 THE AMENDMENT. 1565 00:48:51,001 --> 00:48:57,000 THE CHAIR: 1566 00:48:57,001 --> 00:48:59,000 THE AMENDMENT IS WITHDRAWN. 1567 00:48:59,001 --> 00:49:01,000 IT IS NOW IN ORDER TO CONSIDER 1568 00:49:01,001 --> 00:49:05,000 AMENDMENT NUMBE 1569 00:49:05,001 --> 00:49:06,000 HOUSE REPORT 111-370. FOR WHAT PURPOSDOES THE 1570 00:49:06,001 --> 00:49:08,000 GENTLEMAN FROM PENNSYLVANIA RISE? 1571 00:49:08,001 --> 00:49:11,000 MR. KANJORSKI: I HAVE AN 1572 00:49:11,001 --> 00:49:12,000 AMENDMENT AT THE DESK. 1573 00:49:12,001 --> 00:49:13,000 THE CHAIR: DOES THE GENTLEMAN 1574 00:49:13,001 --> 00:49:14,000 RISE AS THE DESIGNEE OF THE 1575 00:49:14,001 --> 00:49:17,000 GENTLEMAN FROM MASSACHUSETTS? 1576 00:49:17,001 --> 00:49:19,000 MR. KANJORSKI: YES. 1577 00:49:19,001 --> 00:49:20,000 THE CHAIR: THE CLERK WILL 1578 00:49:20,001 --> 00:49:21,000 DESIGNATE THE AMENDMENT. 1579 00:49:21,001 --> 00:49:23,000 THE CLERK: AMENDMENT NUMBER 18, 1580 00:49:23,001 --> 00:49:25,000 PRINTED IN HOUSE REPORT NUMBER 1581 00:49:25,001 --> 00:49:27,000 111-370, OFFERED 1582 00:49:27,001 --> 00:49:30,000 KANJORSKI OF PENNSYLVANIA. 1583 00:49:30,001 --> 00:49:32,000 THE CHAIR: PURS 1584 00:49:32,001 --> 00:49:33,000 -- PURSUANT TO HOUSE RESOLUTION 1585 00:49:33,001 --> 00:49:34,000 964, THE GENTLEMAN FROM 1586 00:49:34,001 --> 00:49:36,000 PENNSYLVANIA, MR. KANJORSKI, 1587 00:49:36,001 --> 00:49:37,000 AND A MEMBER OPPOSED, EACH WILL 1588 00:49:37,001 --> 00:49:38,000 CONTROL FIVE MINUTES. 1589 00:49:38,001 --> 00:49:39,000 THE CHAI 1590 00:49:39,001 --> 00:49:41,000 GENTLEMAN FROM PENNSYLVANIA. 1591 00:49:41,001 --> 00:49:44,000 MR. KANJORSKI: MADAM CHAIRMAN, 1592 00:49:44,001 --> 00:49:45,000 I RISE IN SUPPORT OF THIS 1593 00:49:45,001 --> 00:49:46,000 AMENDMENT. 1594 00:49:46,001 --> 00:49:47,000 NATIONALLY RECOGNIZED 1595 00:49:47,001 --> 00:49:49,000 STATISTICAL RATING 1596 00:49:49,001 --> 00:49:50,000 ORGANIZATIONS ARE THOSE CREDIT 1597 00:49:50,001 --> 00:49:52,000 RATING AGENCIES THAT ARE 1598 00:49:52,001 --> 00:49:54,000 REGISTERED WITH THE SECURITIES 1599 00:49:54,001 --> 00:49:56,000 AND EXCH 1600 00:49:56,001 --> 00:49:58,000 THEREFORE REGULATED. 1601 00:49:58,001 --> 00:50:02,000 MOST OFTEN THE PHASE IS 1602 00:50:02,001 --> 00:50:03,000 SHORTENED 1603 00:50:03,001 --> 00:50:05,000 NRSRO. 1604 00:50:05,001 --> 00:50:06,000 HOWEVER IN FORMAL CONTRACTS AND 1605 00:50:06,001 --> 00:50:10,000 STATUTES, THE WORDS ARE SPELLED 1606 00:50:10,001 --> 00:50:11,000 OUT AND EACH WORD MATTERS. 1607 00:50:11,001 --> 00:50:14,000 UNFORTUNATELY AN AMENDMENT TO 1608 00:50:14,001 --> 00:50:15,000 CHANGE ONE OF THESE WORDS WAS 1609 00:50:15,001 --> 00:50:16,000 INADVERTENTLY ACCEPTE DURING 1610 00:50:16,001 --> 00:50:18,000 THE MARKUP. 1611 00:50:18,001 --> 00:50:21,000 WE SWITCHED OUT THE WORD 1612 00:50:21,001 --> 00:50:23,000 RECOGNIZE FOR THE WORD REGISTER. 1613 00:50:23,001 --> 00:50:26,000 IF ENACTED INTO LAW, SUCH A 1614 00:50:26,001 --> 00:50:28,000 CHANGE WOULD PUT THOUSANDS OF 1615 00:50:28,001 --> 00:50:29,000 CONTRACTS IN DEFAULT AND UPSET 1616 00:50:29,001 --> 00:50:32,000 NUMEROUS FEDERAL AND STATE 1617 00:50:32,001 --> 00:50:35,000 LAWS, RULES, AND REGULATIONS. 1618 00:50:35,001 --> 00:50:36,000 ALTHOUGH WELL INTENDED, SUCH A 1619 00:50:36,001 --> 00:50:39,000 EMINGLY MINUSCULE CHANGE 1620 00:50:39,001 --> 00:50:42,000 COULD HAVE DISASTER'S UNINTENDED CONSEQUENCES. 1621 00:50:42,001 --> 00:50:45,000 WE MUST NOT PUT CONTRACTS IN 1622 00:50:45,001 --> 00:50:47,000 AND REGULATIONS. 1623 00:50:47,001 --> 00:50:50,000 THEREFORE I URGE MY COLLEAGUES 1624 00:50:50,001 --> 00:50:52,000 TO SUPPORT THIS AMENDMENT AND 1625 00:50:52,001 --> 00:50:53,000 REIN 1626 00:50:53,001 --> 00:50:54,000 THIS IMPORTANT LEGISLATION. 1627 00:50:54,001 --> 00:50:56,000 I RESERVE THE BALANCE OF MY 1628 00:50:56,001 --> 00:50:58,000 TIME. 1629 00:50:58,001 --> 00:51:00,000 RESERVES. FOR WHAT PURPOSE DOES THE 1630 00:51:00,001 --> 00:51:02,000 GENTLEMAN FROM NEW JERSEY SEEK 1631 00:51:02,001 --> 00:51:03,000 >> TO CLAIM TIME IN OPPOSITION. 1632 00:51:03,001 --> 00:51:07,000 THE CHAIR: THE GENTLEMAN IS 1633 00:51:07,001 --> 00:51:09,000 RECOGNIZED FOR FIVE MINUTES. 1634 00:51:09,001 --> 00:51:11,000 >> THANK YOU, I YIELD MYSELF 1635 00:51:11,001 --> 00:51:12,000 FOUR MINUTES. 1636 00:51:12,001 --> 00:51:14,000 THE CHAIR: THE GENTLEMAN IS 1637 00:51:14,001 --> 00:51:17,000 RECOGNIZED FOR FOUR 1638 00:51:17,001 --> 00:51:18,000 MR. GARE REST: I THANK THE 1639 00:51:18,001 --> 00:51:21,000 GENTLEMAN FROM PENNSYLVANIA FOR HIS AMENDMENT. 1640 00:51:21,001 --> 00:51:24,000 MORE THAN THAT I SHOULD SAY I 1641 00:51:24,001 --> 00:51:27,000 THANK THE GENTLEMAN FOR 1642 00:51:27,001 --> 00:51:29,000 ADDRESSING THIS LARGER ISSUE OF 1643 00:51:29,001 --> 00:51:31,000 C.R.A.'S FOR A NUMBER OF MONTHS. 1644 00:51:31,001 --> 00:51:32,000 CLAIM TIME IN OPPOSITION JUST 1645 00:51:32,001 --> 00:51:33,000 ON THE AMENDMENT BECAUSE I 1646 00:51:33,001 --> 00:51:36,000 THINK WE COULD PROBABLY WORK 1647 00:51:36,001 --> 00:51:37,000 THIS OUT IN A DIFFERENT WAY. 1648 00:51:37,001 --> 00:51:39,000 THE GENTLEMAN AND I WORKED FOR 1649 00:51:39,001 --> 00:51:41,000 A LONG TIME TRYING TO ADDRESS 1650 00:51:41,001 --> 00:51:42,000 THE ISSUE OF CREDIT RATING 1651 00:51:42,001 --> 00:51:44,000 AGENCIES BECAUSE BOTH OF US 1652 00:51:44,001 --> 00:51:46,000 REALIZE THAT WHEN YOU LAY OUT 1653 00:51:46,001 --> 00:51:48,000 THE REASONS WHY WE ARE IN THIS 1654 00:51:48,001 --> 00:51:50,000 FINANCIAL MESS THAT WE ARE IN 1655 00:51:50,001 --> 00:51:52,000 RIGHT NOW, WE MAY DISAGREE ON 1656 00:51:52,001 --> 00:51:54,000 THIS POINT OR THAT POINT AS TO 1657 00:51:54,001 --> 00:51:56,000 EXAC 1658 00:51:56,001 --> 00:52:00,000 BUT 1659 00:52:00,001 --> 00:52:02,000 TO CONCLUSIONS 1660 00:52:02,001 --> 00:52:03,000 C.R.A.'S PLAYED A HUGE PART TO 1661 00:52:03,001 --> 00:52:04,000 BRING US WHERE WE ARE TODAY 1662 00:52:04,001 --> 00:52:07,000 WITH THIS FINANCIAL MESS. 1663 00:52:07,001 --> 00:52:08,000 THE REASON IT DID WAS BECAUSE 1664 00:52:08,001 --> 00:52:10,000 SO MANY PEOPLE FAILED TO 1665 00:52:10,001 --> 00:52:13,000 EXERCISE WHAT WE WOULD CALL 1666 00:52:13,001 --> 00:52:15,000 THEY MADE THEIR INVESTMENTS. 1667 00:52:15,001 --> 00:52:17,000 WHETHER THAT WAS A SMALL 1668 00:52:17,001 --> 00:52:19,000 INVESTORS, MIDDLE-SIZED 1669 00:52:19,001 --> 00:52:20,000 INVESTORS, OR THE SO-CALLED 1670 00:52:20,001 --> 00:52:22,000 KNOWLEDGEABLE INVESTORS ON WALL 1671 00:52:22,001 --> 00:52:25,000 STREET FAILED TO 1672 00:52:25,001 --> 00:52:27,000 NORMAL TIMES THEY WOULD HAVE 1673 00:52:27,001 --> 00:52:29,000 INSIDE THEM TO SAY WHAT IS THE 1674 00:52:29,001 --> 00:52:30,000 PROPER DECISION MAKE. 1675 00:52:30,001 --> 00:52:31,000 WHAT RISKS SHOULD I TAKE HERE 1676 00:52:31,001 --> 00:52:33,000 OR THERE. 1677 00:52:33,001 --> 00:52:35,000 WHY WAS THAT, THOUGH, IS THE QUESTION. 1678 00:52:35,001 --> 00:52:36,000 WE LOOKED AT A WLE BUNCH OF 1679 00:52:36,001 --> 00:52:37,000 THINGS AND TRIED TO COME UP 1680 00:52:37,001 --> 00:52:40,000 WITH CHANGES TO THE REGULATIONS 1681 00:52:40,001 --> 00:52:41,000 OF T C.R.A.'S, CREDIT RATING 1682 00:52:41,001 --> 00:52:43,000 AGENCIES, AND WE MADE A LOT OF 1683 00:52:43,001 --> 00:52:45,000 CHANGES THAT WERE IMPROVEMENTS. 1684 00:52:45,001 --> 00:52:47,000 I THINK WE CAME DOWN TO ONE 1685 00:52:47,001 --> 00:52:49,000 POINT IS THERE WAS MUCH 1686 00:52:49,001 --> 00:52:51,000 RELIANCE UPON CREDIT RATING AGENCIES 1687 00:52:51,001 --> 00:52:54,000 JUST BECAUSE THE C.R.A. CAME 1688 00:52:54,001 --> 00:52:55,000 OUT AND SAID THIS PARTICULAR 1689 00:52:55,001 --> 00:52:57,000 SECURITY OR THIS PARTICULAR 1690 00:52:57,001 --> 00:52:58,000 FINANCIAL PRODUCT WAS RATED 1691 00:52:58,001 --> 00:53:00,000 TRIPLE-A, REGARDLESS OF WHAT 1692 00:53:00,001 --> 00:53:02,000 WAS ACTUALLY IN THE PACKAGE, 1693 00:53:02,001 --> 00:53:05,000 REGARDLESS OF THE FACT MAYBE IT 1694 00:53:05,001 --> 00:53:07,000 WAS JUST A COM 1695 00:53:07,001 --> 00:53:08,000 SUBPRIME MORTGAGE WAS NO 1696 00:53:08,001 --> 00:53:10,000 LIKELIHOOD, WHATSOEVER, THEY 1697 00:53:10,001 --> 00:53:11,000 WOULD BE PAID OFF, THEY GOT THE 1698 00:53:11,001 --> 00:53:12,000 TRIPLE-A 1699 00:53:12,001 --> 00:53:15,000 PEOPLE INVESTED IN IT AND OF 1700 00:53:15,001 --> 00:53:17,000 COURSE THE REST IS HISTORY. 1701 00:53:17,001 --> 00:53:19,000 ONE OF THE REASONS WHY WE THINK 1702 00:53:19,001 --> 00:53:20,000 THEY GOT THE SEAL OF APPROVAL 1703 00:53:20,001 --> 00:53:22,000 AND WHY INVESTORS LOOKED AT 1704 00:53:22,001 --> 00:53:23,000 THAT AND SAID IT WAS OK WAS 1705 00:53:23,001 --> 00:53:24,000 BECAUSE THEY HAD THE SEAL OF 1706 00:53:24,001 --> 00:53:25,000 APPROVAL FROM THE FEDERAL 1707 00:53:25,001 --> 00:53:26,000 GOVERNMENT. 1708 00:53:26,001 --> 00:53:29,000 THEY WERE LISTED AS THE 1709 00:53:29,001 --> 00:54:05,000 C.R.A.'S WERE LISTED AS 1710 00:54:05,001 --> 00:54:06,000 NRSRO'S, 1711 00:54:06,001 --> 00:54:07,000 REGISTERED. 1712 00:54:07,001 --> 00:54:08,000 MERELY THEY WERE REGISTERED. 1713 00:54:08,001 --> 00:54:10,000 NO SEAL OF APPROVAL. 1714 00:54:10,001 --> 00:54:11,000 NO STAMP OF GOOD HOUSEKEEPING 1715 00:54:11,001 --> 00:54:13,000 SEAL OF APPROVAL. 1716 00:54:13,001 --> 00:54:15,000 JUST THEY HAD GONE THROUGH THE 1717 00:54:15,001 --> 00:54:17,000 MOTIONS AND SIMPLY REGISTERED 1718 00:54:17,001 --> 00:54:18,000 WITH THE GOVERNMENT AS BEING 1719 00:54:18,001 --> 00:54:20,000 NATIONALLY REGISTERED 1720 00:54:20,001 --> 00:54:21,000 STATISTICAL RATING 1721 00:54:21,001 --> 00:54:22,000 ORGANIZATIONS. THAT IS WHY I THINK IT MADE 1722 00:54:22,001 --> 00:54:24,000 GOOD SENSE TO TAKE AWAY THAT 1723 00:54:24,001 --> 00:54:26,000 SEAL OF APPROVAL AND THAT IS 1724 00:54:26,001 --> 00:54:27,000 WHY ALSO I BELIEVE THAT THIS 1725 00:54:27,001 --> 00:54:29,000 LEGISLATION, THIS AMENDMENT IN 1726 00:54:29,001 --> 00:54:30,000 COMMITTEE, PASSED IN A 1727 00:54:30,001 --> 00:54:31,000 BIPARTISAN MANNER OUT OF 1728 00:54:31,001 --> 00:54:34,000 COMMITTEE. 1729 00:54:34,001 --> 00:54:37,000 NOW, I RECOGNIZE I'M ACTUALLY 1730 00:54:37,001 --> 00:54:39,000 ON THE FLOOR NOW ODDLY ENOUGH 1731 00:54:39,001 --> 00:54:40,000 DEPENDING THE -- DEFENDING THE 1732 00:54:40,001 --> 00:54:42,000 ACTIONS OF THE COMMITTEE FOR A 1733 00:54:42,001 --> 00:54:43,000 CHANGE AND I UNDERSTAND THE 1734 00:54:43,001 --> 00:54:44,000 POTENTIAL PROBLEMS. 1735 00:54:44,001 --> 00:54:45,000 I WOULD 1736 00:54:45,001 --> 00:54:47,000 OTHER THINGS COULD BE DONE 1737 00:54:47,001 --> 00:54:48,000 OTHER THAN JUST STRIPPING THIS 1738 00:54:48,001 --> 00:54:49,000 OUT AND GOING BACK TO THE WAY 1739 00:54:49,001 --> 00:54:50,000 IT WAS BEFORE. 1740 00:54:50,001 --> 00:54:55,000 I WOULD SUGGEST THAT WE LEAVE 1741 00:54:55,001 --> 00:54:56,000 IT AS 1742 00:54:56,001 --> 00:54:59,000 WE GO FORWARD THROUGH THE 1743 00:54:59,001 --> 00:55:02,000 PROCESS IF WE FIND THE -- MAYBE 1744 00:55:02,001 --> 00:55:04,000 ITS MINUTIA, MAYBE NOT, AS FAR 1745 00:55:04,001 --> 00:55:05,000 AS SOME STATE'S REGULATIONS OR 1746 00:55:05,001 --> 00:55:07,000 OTHER FEDERAL REGULATIONS THAT 1747 00:55:07,001 --> 00:55:11,000 REFER TO THIS, I BET YOU THERE 1748 00:55:11,001 --> 00:55:13,000 IS ANOTHER SIMPLER WAY TO -- I 1749 00:55:13,001 --> 00:55:16,000 BET YOU THERE IS A SIMPLER WAY 1750 00:55:16,001 --> 00:55:18,000 TO CORRESPONDENT THIS -- 1751 00:55:18,001 --> 00:55:20,000 CORRESPONDTHIS BACK. 1752 00:55:20,001 --> 00:55:21,000 I LOOK FORWARD TO WORKING 1753 00:55:21,001 --> 00:55:22,000 THE CHAIR 1754 00:55:22,001 --> 00:55:25,000 THE CHAIR: THE GENTLEMAN'S TIME 1755 00:55:25,001 --> 00:55:26,000 HAS EXPIRED. 1756 00:55:26,001 --> 00:55:27,000 THE GENTLEMAN FROM PENNSYLVANIA 1757 00:55:27,001 --> 00:55:29,000 IS RECOGNIZED. 1758 00:55:29,001 --> 00:55:31,000 MR. CAN JOR -- KANJORSKI: I 1759 00:55:31,001 --> 00:55:33,000 YIELD SUCH TIME AS HE MAY 1760 00:55:33,001 --> 00:55:34,000 REQUIRE TO THE CHAIR OF THE 1761 00:55:34,001 --> 00:55:36,000 COMMITTEE. 1762 00:55:36,001 --> 00:55:38,000 THE CHAIR: THE GENTLE MASSACHUSETTS. 1763 00:55:38,001 --> 00:55:39,000 MR. FRANK: I AGREE WITH WHAT HE 1764 00:55:39,001 --> 00:55:41,000 SAID ABOUT CREDIT RATING. 1765 00:55:41,001 --> 00:55:42,000 I FOR THE RECORD WOULD LIKE TO 1766 00:55:42,001 --> 00:55:43,000 MAKE AN ASSERTION I KNOW HE 1767 00:55:43,001 --> 00:55:44,000 AGREES WITH. 1768 00:55:44,001 --> 00:55:46,000 WHEN HE TALKS ABOUT OUR 1769 00:55:46,001 --> 00:55:48,000 AGREEMENT ON THE C.R.A.'S AND 1770 00:55:48,001 --> 00:55:49,000 ROLE, WE ARE TALKING ABOUT THE 1771 00:55:49,001 --> 00:55:50,000 CREDIT RATING AGENCIES, NOT THE 1772 00:55:50,001 --> 00:55:52,000 COMMUNITY REINVESTMENT ACT THE 1773 00:55:52,001 --> 00:55:53,000 OTHER C.R.A. WITH WHICH WE 1774 00:55:53,001 --> 00:55:54,000 1775 00:55:54,001 --> 00:55:55,000 SOMETIMES PEOPLE DON'T PAY FULL 1776 00:55:55,001 --> 00:55:57,000 ATTENTION. 1777 00:55:57,001 --> 00:55:58,000 I DON'T WANT TO GET ANYBODY TOO AGITATED. 1778 00:55:58,001 --> 00:56:01,000 HE'S RIGHT. 1779 00:56:01,001 --> 00:56:03,000 HE AND I COLLABORATED ON THE 1780 00:56:03,001 --> 00:56:06,000 LEGISLATION TO REMOVE THE 1781 00:56:06,001 --> 00:56:08,000 STATUTORY 1782 00:56:08,001 --> 00:56:11,000 HE'S ALSO CORRECT, WE FULLY 1783 00:56:11,001 --> 00:56:13,000 AGREE, I THINK IT'S VERY TRUE 1784 00:56:13,001 --> 00:56:14,000 UNANIMITY, WITH THE PURPOSE HE 1785 00:56:14,001 --> 00:56:16,000 ARTICULATED. 1786 00:56:16,001 --> 00:56:18,000 TELLING THE AVERAGE INVESTOR, 1787 00:56:18,001 --> 00:56:21,000 PAY ATTENTION ON YOUR OWN. 1788 00:56:21,001 --> 00:56:23,000 DON'T RELY ON THE RATING AGENCIES. 1789 00:56:23,001 --> 00:56:25,000 DON'T SUBCONTRACYOUR JUDGMENT TO THEM. 1790 00:56:25,001 --> 00:56:27,000 I AM FRUSTRATED. 1791 00:56:27,001 --> 00:56:29,000 I WOULD HOPE THAT PEOPLE OUT IN 1792 00:56:29,001 --> 00:56:30,000 THE ECON 1793 00:56:30,001 --> 00:56:34,000 ADVANTAGE OF THE FULL LEGAL 1794 00:56:34,001 --> 00:56:35,000 RIGHTS THEY HAVE TO CREATE SOME 1795 00:56:35,001 --> 00:56:37,000 BUY SITE RATINGS AGENCIES. 1796 00:56:37,001 --> 00:56:39,000 THAT WOULD BE HELPFUL. WE CHECKED. 1797 00:56:39,001 --> 00:56:40,000 THERE WERE NO OBSTACLES TO 1798 00:56:40,001 --> 00:56:42,000 DOING IT. 1799 00:56:42,001 --> 00:56:44,000 I HAD FRUSTRATION WE WEREN'T ABLE TO DO MORE. 1800 00:56:44,001 --> 00:56:45,000 I THINK WE HAVE DONE AS MUCH AS 1801 00:56:45,001 --> 00:56:48,000 ANYBODY COULD THINK OF. 1802 00:56:48,001 --> 00:56:49,000 I HAVE SEEN ARTICLES SAYING WHY 1803 00:56:49,001 --> 00:56:51,000 DIDN'T YOU DO MORE BUT THEY 1804 00:56:51,001 --> 00:56:53,000 WERE ABSENT OF ANY SUGGESTION. 1805 00:56:53,001 --> 00:56:55,000 I THINK IT WOULD BE BETTER IF 1806 00:56:55,001 --> 00:56:57,000 WE HAD RATING AGENCIES. 1807 00:56:57,001 --> 00:56:59,000 IN THE INTERIM WE HAVE TOLD 1808 00:56:59,001 --> 00:57:00,000 PEOPLE USE YOUR OWN JUDGMENT, 1809 00:57:00,001 --> 00:57:02,000 AS THE GENTLEMAN ACKNOWLEDGED 1810 00:57:02,001 --> 00:57:04,000 OUT. 1811 00:57:04,001 --> 00:57:06,000 GOING FORWARD, THE PROBLEM WE 1812 00:57:06,001 --> 00:57:09,000 GOT WAS FROM A NUMBER OF STATES 1813 00:57:09,001 --> 00:57:12,000 AND PRIVATE INSTITUTIONS THAT 1814 00:57:12,001 --> 00:57:15,000 THE OLD LANGUAGE. 1815 00:57:15,001 --> 00:57:17,000 I AM PLEASED THE GENTLEMAN SAID LET'S WORK TOGETHER. 1816 00:57:17,001 --> 00:57:19,000 I THINK IT WOULD MEAN MEETING 1817 00:57:19,001 --> 00:57:20,000 WITH VARIOUS OF THE STATE 1818 00:57:20,001 --> 00:57:21,000 AGENCI AND PENSION FUNDS TO 1819 00:57:21,001 --> 00:57:22,000 SEE IF THERE IS SOME 1820 00:57:22,001 --> 00:57:25,000 LEGISLATIVE FIX WE COULD ADOPT 1821 00:57:25,001 --> 00:57:26,000 SHORT OF GOING BACK TO THE OLD WAY. 1822 00:57:26,001 --> 00:57:28,000 I AGREE WITH HIM AS TO THE 1823 00:57:28,001 --> 00:57:29,000 PURPOSE OF CHANGING THE SAME SO 1824 00:57:29,001 --> 00:57:30,000 THAT WE CAN ALLEVIATE THIS 1825 00:57:30,001 --> 00:57:32,000 PROBLEM THERE. 1826 00:57:32,001 --> 00:57:33,000 SO WITH THAT I WOULD BE WILLING 1827 00:57:33,001 --> 00:57:35,000 TO SAY THERE IS NO NEED FOR THE 1828 00:57:35,001 --> 00:57:36,000 AMENDMENT EVEN THOUGH WE HAVE 1829 00:57:36,001 --> 00:57:38,000 AN AGREEMENT. 1830 00:57:38,001 --> 00:57:40,000 WE'LL ASK OUR HARDWORKING AND 1831 00:57:40,001 --> 00:57:41,000 VERY CREATIVE STAFFS 1832 00:57:41,001 --> 00:57:43,000 OFTEN WORK VERY WELL TOGETHER 1833 00:57:43,001 --> 00:57:44,000 TO MEET WITH THOSE WHO HAVE 1834 00:57:44,001 --> 00:57:45,000 RAISED THIS ISSUE TO SEE IF 1835 00:57:45,001 --> 00:57:47,000 THERE IS SOMETHING ELSE WE 1836 00:57:47,001 --> 00:57:48,000 COULD DO THAT WOULD MEET THEIR 1837 00:57:48,001 --> 00:57:50,000 CONCERNS SO THEY WOULDN'T HAVE 1838 00:57:50,001 --> 00:57:52,000 TO A ETC. 1839 00:57:52,001 --> 00:57:55,000 WITH THAT I THINK WE HAVE COME 1840 00:57:55,001 --> 00:57:56,000 TO A CONCEPTUAL AGREEMENT AND 1841 00:57:56,001 --> 00:57:59,000 IS OFTEN THE CASE WE THE 1842 00:57:59,001 --> 00:58:00,000 CONCEPTUAL AGREEMENT AND THE 1843 00:58:00,001 --> 00:58:02,000 STAFF WILL DO THE HARD WORK OF 1844 00:58:02,001 --> 00:58:04,000 MAKING IT A REALITY. 1845 00:58:04,001 --> 00:58:05,000 THE CHAIR: DOES THE GENTLEMAN 1846 00:58:05,001 --> 00:58:07,000 RESERVE? 1847 00:58:07,001 --> 00:58:08,000 MR. KANJORSKI: I DO. 1848 00:58:08,001 --> 00:58:10,000 THE CHAIR: THE GENTLEMAN 1849 00:58:10,001 --> 00:58:11,000 RESERVES. 1850 00:58:11,001 --> 00:58:14,000 TH GENTLEMAN FROM NEW JERSEY 1851 00:58:14,001 --> 00:58:15,000 IS RECOGNIZED. 1852 00:58:15,001 --> 00:58:16,000 THE GENTLEMAN HAS ONE MINUTE 1853 00:58:16,001 --> 00:58:19,000 REMAINING. 1854 00:58:19,001 --> 00:58:21,000 MR. GARRETT: DO YOU HAVE OTHER 1855 00:58:21,001 --> 00:58:22,000 MR. KANJORSKI: NO. 1856 00:58:22,001 --> 00:58:23,000 THE CHAIR: THE GENTLEMAN FROM 1857 00:58:23,001 --> 00:58:24,000 NEW JERSEY HAS THE RIGHT TO 1858 00:58:24,001 --> 00:58:27,000 CLOSE. 1859 00:58:27,001 --> 00:58:28,000 MR. GARRETT: DO YOU HAVE ANY 1860 00:58:28,001 --> 00:58:30,000 OTHER TIME? 1861 00:58:30,001 --> 00:58:33,000 MR. KANJORSKI: WE YIELD BAC 1862 00:58:33,001 --> 00:58:34,000 OUR TIME AND ASK 1863 00:58:34,001 --> 00:58:35,000 THE CHAIR: THE GENTLEMAN FROM 1864 00:58:35,001 --> 00:58:41,000 NEW JERSEY IS RECOGNIZED. 1865 00:58:41,001 --> 00:58:42,000 MR. GARRETT: I A 1866 00:58:42,001 --> 00:58:45,000 CHAIRMAN'S COMMENTS AND LOOK 1867 00:58:45,001 --> 00:58:47,000 FORWARD TO SEEING HOW THIS CAN 1868 00:58:47,001 --> 00:58:48,000 BE DEALT WITH -- IF THIS 1869 00:58:48,001 --> 00:58:49,000 FINALLY DOES PASS AND GOES 1870 00:58:49,001 --> 00:58:53,000 THROUGH OVER TO THE SENATE AND 1871 00:58:53,001 --> 00:58:55,000 THE CONFERE 1872 00:58:55,001 --> 00:58:57,000 MR. FRANK: THE GTLEMAN WOULD YIELD. 1873 00:58:57,001 --> 00:58:58,000 MR. GARRETT: YES,IR. 1874 00:58:58,001 --> 00:59:00,000 MR. FRANK: I WOULD SAY, IF 1875 00:59:00,001 --> 00:59:02,000 THERE WERE TO BE A NO ON THE 1876 00:59:02,001 --> 00:59:04,000 VOICE VOTE, I THINK THAT WOULD 1877 00:59:04,001 --> 00:59:06,000 BE A REASONABLE END TO THIS 1878 00:59:06,001 --> 00:59:13,000 PARTICULAR DISC 1879 00:59:13,001 --> 00:59:15,000 WE TALKED ABOUT. 1880 00:59:15,001 --> 00:59:17,000 MR. GARRETT: WITH THAT COMMENT 1881 00:59:17,001 --> 00:59:19,000 AND ALSO WITH THE UNDERSTANDING 1882 00:59:19,001 --> 00:59:21,000 THAT WE ARE NOT TALK 1883 00:59:21,001 --> 00:59:23,000 THE OTHER C.R.A., ALTHOUGH IF 1884 00:59:23,001 --> 00:59:26,000 WE COULD MAKE A U.C. PUT THAT 1885 00:59:26,001 --> 00:59:27,000 AS BEING A CAUSE -- I GUES WE 1886 00:59:27,001 --> 00:59:29,000 CAN'T DO THAT. 1887 00:59:29,001 --> 00:59:31,000 THAT'S A BRIDGE TOOER FAR. 1888 00:59:31,001 --> 00:59:32,000 WITH THAT, I -- TOO FAR. 1889 00:59:32,001 --> 00:59:33,000 WITH THAT I YIELD BACK. 1890 00:59:33,001 --> 00:59:34,000 THE CHAIR: THE GENTLEMAN YIELDS. 1891 00:59:34,001 --> 00:59:36,000 THE QUESTION IS ON THE 1892 00:59:36,001 --> 00:59:38,000 AMENDMENT OFFERED BY THE 1893 00:59:38,001 --> 00:59:39,000 GENTLEMAN FROM PENNSYLVANIA. SO MANY AS ARE IN FAVOR SAY 1894 00:59:39,001 --> 00:59:43,000 AYE. 1895 00:59:43,001 --> 00:59:44,000 THOSE OPPOSED, NO. 1896 00:59:44,001 --> 00:59:45,000 IN THE OPINION THE NOES HAVE IT. 1897 00:59:45,001 --> 01:00:00,000 THE AMENDMENT IS NOT AGREED TO. 1898 01:00:00,001 --> 01:00:04,000 . 1899 01:00:04,001 --> 01:00:05,000 IT IS NOW IN ORDER TO CONSIDER 1900 01:00:05,001 --> 01:00:09,000 AMENDMENT NUMBER 19 PRINTED IN 1901 01:00:09,001 --> 01:00:10,000 HOUSE REPORT 111-370. 1902 01:00:10,001 --> 01:00:11,000 FOR WHAT PURPOSE DOES THE 1903 01:00:11,001 --> 01:00:13,000 GENTLEMAN FROM GEORGIA RISE? 1904 01:00:13,001 --> 01:00:15,000 >> I RISE AS THE DESIGNEE OF 1905 01:00:15,001 --> 01:00:17,000 THE 1906 01:00:17,001 --> 01:00:19,000 MR. CON 1907 01:00:19,001 --> 01:00:20,000 THEH 1908 01:00:20,001 --> 01:00:21,000 OFFER THE AMENDMENT? 1909 01:00:21,001 --> 01:00:22,000 MR. MARSHALL: I DO OFFER THE 1910 01:00:22,001 --> 01:00:24,000 AMENDMENT. 1911 01:00:24,001 --> 01:00:25,000 THE CHAIR: THE CLERK WILL 1912 01:00:25,001 --> 01:00:27,000 DESIGNATE THE AMENDMENT. 1913 01:00:27,001 --> 01:00:28,000 THE CLERK: AMDMENT NUMBER 19 1914 01:00:28,001 --> 01:00:29,000 PRINTED IN HOUSE REPORT 111-370 1915 01:00:29,001 --> 01:00:31,000 OFFERED BY MR. MARSHALL OF 1916 01:00:31,001 --> 01:00:32,000 GEORGIA. 1917 01:00:32,001 --> 01:00:35,000 THE CHA 1918 01:00:35,001 --> 01:00:36,000 RESOLUTION 964, THE GENTLEMAN 1919 01:00:36,001 --> 01:00:38,000 FROM GEORGIA, MR. MARSHALL, AND 1920 01:00:38,001 --> 01:00:39,000 A MEMBER OPPOSED, EACH WILL 1921 01:00:39,001 --> 01:00:41,000 CONTROL FIVE MINUTES. 1922 01:00:41,001 --> 01:00:42,000 THE CHAIR RECOGNIZES THE 1923 01:00:42,001 --> 01:00:44,000 GENTLEMAN FROM GEORGIA. 1924 01:00:44,001 --> 01:00:45,000 MR. MARSHALL: I THANK THE 1925 01:00:45,001 --> 01:00:47,000 SPEAKER. 1926 01:00:47,001 --> 01:00:49,000 THIS IS AN AMENDMENT WHICH IS 1927 01:00:49,001 --> 01:00:52,000 IDENTICAL TO A BILL PASSED BY 1928 01:00:52,001 --> 01:00:54,000 THE HOUSE EARLIER THIS YEAR IN 1929 01:00:54,001 --> 01:00:58,000 MARCH. THE BILL PERMITS WHAT'S 1930 01:00:58,001 --> 01:00:59,000 REFERRED TO AS CRAMDOWN IN 1931 01:00:59,001 --> 01:01:01,000 CHAPTER 13 WITH REGARD TO 1932 01:01:01,001 --> 01:01:04,000 PRIVATE HOME MORTGAGES. 1933 01:01:04,001 --> 01:01:06,000 IT IS INTENDED TO ADDRESS THIS 1934 01:01:06,001 --> 01:01:08,000 FORECLOSURE CRISIS WITHOUT 1935 01:01:08,001 --> 01:01:09,000 TAXPAYERS HAVING TO PUT MONEY 1936 01:01:09,001 --> 01:01:11,000 INTO THE DEAL. 1937 01:01:11,001 --> 01:01:14,000 IT ESSENTIALLY FORCES THE 1938 01:01:14,001 --> 01:01:17,000 PARTIES TO THE DEAL TO DEAL 1939 01:01:17,001 --> 01:01:19,000 HAVING VACANCIES AND 1940 01:01:19,001 --> 01:01:21,000 FORECLOSURES IN OUR NEIGHBORHOODS. 1941 01:01:21,001 --> 01:01:24,000 IN THAT SENSE, IT HELPS OUR 1942 01:01:24,001 --> 01:01:26,000 PORTFOLIOS. 1943 01:01:26,001 --> 01:01:28,000 IT HELPS THE INDIVIDUALS WHOSE 1944 01:01:28,001 --> 01:01:29,000 HOMES MIGHT BE FORECLOSURED 1945 01:01:29,001 --> 01:01:31,000 UPON AND IT ACTUALLY HELPS THE 1946 01:01:31,001 --> 01:01:33,000 CREDITOR WHO IS FORCED INTO A 1947 01:01:33,001 --> 01:01:35,000 CHAPTE 1948 01:01:35,001 --> 01:01:36,000 ALMOST EVERY INSTANCE THEIR 1949 01:01:36,001 --> 01:01:38,000 PORTFOLIO IS IMPROVED BY NOT 1950 01:01:38,001 --> 01:01:41,000 HAVING AS MANY HOUSES IN 1951 01:01:41,001 --> 01:01:42,000 FORECLOSURE. 1952 01:01:42,001 --> 01:01:43,000 AND IN ALMOST EVERY INSTANCE 1953 01:01:43,001 --> 01:01:46,000 THEY GET A BETTER DEAL IN A 1954 01:01:46,001 --> 01:01:48,000 CHAPTER 13 PROCESS THAN THEY 1955 01:01:48,001 --> 01:01:50,000 WOULD IN A NORMAL FORECLOSURE 1956 01:01:50,001 --> 01:01:51,000 PROCESS. 1957 01:01:51,001 --> 01:01:53,000 WE SHOULD HAVE DONE THIS LONG 1958 01:01:53,001 --> 01:01:55,000 AGO. IT WOULD HAVE HELPED THE 1959 01:01:55,001 --> 01:01:58,000 HOUSING CRIS AND 1960 01:01:58,001 --> 01:02:00,000 CONSEQUENCELY -- CONS IS HE 1961 01:02:00,001 --> 01:02:04,000 WENTLY THE ECONOMY OF AMERICA. 1962 01:02:04,001 --> 01:02:06,000 THIS IS MR. CONYERS' BILL. 1963 01:02:06,001 --> 01:02:07,000 I COMPLIMENT MS. LOFGREN FROM 1964 01:02:07,001 --> 01:02:11,000 CALIFORNIA WHO COULDN'T BE HERE 1965 01:02:11,001 --> 01:02:14,000 BECAUSE SHE'S BEEN A REAL 1966 01:02:14,001 --> 01:02:15,000 STALWART MOV 1967 01:02:15,001 --> 01:02:16,000 WITH THAT I RESERVE THE BALANCE 1968 01:02:16,001 --> 01:02:18,000 OF MY TIME. 1969 01:02:18,001 --> 01:02:19,000 THE CHAIR: THE GENTLEMAN 1970 01:02:19,001 --> 01:02:21,000 RESERVES. 1971 01:02:21,001 --> 01:02:23,000 FOR WHAT PURPOSE DOES THE GENTLEMAN FROM VIRGINIA RISE? 1972 01:02:23,001 --> 01:02:24,000 >> TO CLAIM THE TIME IN 1973 01:02:24,001 --> 01:02:26,000 OPPOSITION. 1974 01:02:26,001 --> 01:02:27,000 THE CHAIR: THE GENTLEMAN IS 1975 01:02:27,001 --> 01:02:29,000 REC 1976 01:02:29,001 --> 01:02:31,000 MR. GOODLATTE: THANYOU, MADAM 1977 01:02:31,001 --> 01:02:32,000 CHAIRMAN. 1978 01:02:32,001 --> 01:02:33,000 AT THIS MOMENT I'M PLEASED TO 1979 01:02:33,001 --> 01:02:35,000 YIELD A M 1980 01:02:35,001 --> 01:02:36,000 FROM TEXAS, THE RANKING MEMBER 1981 01:02:36,001 --> 01:02:39,000 OF THE JUDICIARY COMMITTEE. 1982 01:02:39,001 --> 01:02:41,000 TEXAS IS RECOGNIZED FOR ONE MINUTE. 1983 01:02:41,001 --> 01:02:43,000 MR. SMITH: I THANK THE 1984 01:02:43,001 --> 01:02:44,000 GENTLEMAN FROM VIRGINIA, MR. 1985 01:02:44,001 --> 01:02:45,000 GOODLATTE, THE DEPUTY RANKING 1986 01:02:45,001 --> 01:02:46,000 MEMBER OF THE JUDICIARY 1987 01:02:46,001 --> 01:02:48,000 COMMITTEE, FOR YIELDING ME 1988 01:02:48,001 --> 01:02:49,000 TIME. 1989 01:02:49,001 --> 01:02:50,000 MADAM CHAIR WOMAN, THOSE WHO 1990 01:02:50,001 --> 01:02:51,000 CONFRONT MORTGAGE FORECLOSURES 1991 01:02:51,001 --> 01:02:53,000 ARE UNDERSTANDABLY IN A 1992 01:02:53,001 --> 01:02:54,000 DIFFICULT SITUATION. 1993 01:02:54,001 --> 01:02:55,000 BUT THIS BANKRUPTCY AMENDMENT 1994 01:02:55,001 --> 01:02:56,000 WILL ONLY LEAD TO A WORSE 1995 01:02:56,001 --> 01:02:58,000 SITUATION FOR EVERYONE. 1996 01:02:58,001 --> 01:02:59,000 THE NUMBER ONE CAUSE OF 1997 01:02:59,001 --> 01:03:00,000 FORECLOSURES TODAY IS JOB LOSS. 1998 01:03:00,001 --> 01:03:01,000 THE NUMBER TWO CAUSE IS HOMES 1999 01:03:01,001 --> 01:03:03,000 THAT ARE MORTGAGED FOR MORE 2000 01:03:03,001 --> 01:03:05,000 THAN THEY ARE WORTH. 2001 01:03:05,001 --> 01:03:09,000 SENDING THESE HOMEOWNERS WITH 2002 01:03:09,001 --> 01:03:10,000 THESE PROBLEMS INTO CHAPTER 13 2003 01:03:10,001 --> 01:03:11,000 UPS BANKRUPTCY WILL NOT SOLVE 2004 01:03:11,001 --> 01:03:13,000 AT ALL. 2005 01:03:13,001 --> 01:03:14,000 THEY DON'T HAVE THE INCOME 2006 01:03:14,001 --> 01:03:16,000 REQUIRED THAT IS REQUIRED TO 2007 01:03:16,001 --> 01:03:17,000 FILE CHAPTER 13 BANKRUPTCY. 2008 01:03:17,001 --> 01:03:20,000 AND THOSE SHOULD HONOR THE 2009 01:03:20,001 --> 01:03:21,000 MORTGAGES FOR WHICH THEY FREELY 2010 01:03:21,001 --> 01:03:23,000 CONTRACTED. 2011 01:03:23,001 --> 01:03:24,000 ALLOWING BANKRUPTCY COURTS TO 2012 01:03:24,001 --> 01:03:25,000 CRAM DOWN MORTGAGE PRINCIPAL 2013 01:03:25,001 --> 01:03:26,000 WILL ONLY LEAD TO HIGHER 2014 01:03:26,001 --> 01:03:29,000 INTEREST RATES AND TUCKER 2015 01:03:29,001 --> 01:03:30,000 MORTGAGE TERMS 2016 01:03:30,001 --> 01:03:33,000 HOMEOWNERS. 2017 01:03:33,001 --> 01:03:34,000 WHY SHOULD THOSE THAT DID 2018 01:03:34,001 --> 01:03:36,000 PRICE? 2019 01:03:36,001 --> 01:03:38,000 I YIELD BACK. THE CHAIR: THE GENTLEMAN 2020 01:03:38,001 --> 01:03:39,000 YIELDS. 2021 01:03:39,001 --> 01:03:41,000 THE GENTLEMAN FROM GEORGIA IS 2022 01:03:41,001 --> 01:03:42,000 RECOGNIZED. 2023 01:03:42,001 --> 01:03:43,000 MR. MARSHALL: I YIELD MYSELF 2024 01:03:43,001 --> 01:03:45,000 SUCH TIME AS I MAY CONSUME, AND 2025 01:03:45,001 --> 01:03:46,000 JUST A COUPLE OF OBSERVATIONS. 2026 01:03:46,001 --> 01:03:47,000 IF IN FACT YOU ARE JOBLESS AND 2027 01:03:47,001 --> 01:03:49,000 DON'T HAVE INCOME, YOU ARE NOT 2028 01:03:49,001 --> 01:03:50,000 ELIGIBLE FOR CHAPTER 13 AND 2029 01:03:50,001 --> 01:03:51,000 CONSEQUENTLY YOU WON'T BE ABLE 2030 01:03:51,001 --> 01:03:53,000 TO CRAM DOWN. 2031 01:03:53,001 --> 01:03:54,000 IT'S THOSE THAT DO HAVE JOBS, 2032 01:03:54,001 --> 01:03:55,000 WHO DO HAVE INCOME WHO COULD 2033 01:03:55,001 --> 01:03:56,000 SURVIVE IF THEY HAD THE 2034 01:03:56,001 --> 01:03:58,000 OPPORTUNITY TO RESTRUCTURE 2035 01:03:58,001 --> 01:03:59,000 THEIR DEBT, WHO WOULD BE 2036 01:03:59,001 --> 01:04:01,000 ELIGIBLE, AND IT'S LY THOSE 2037 01:04:01,001 --> 01:04:04,000 FOLKS AS FAR AS INCREASING THE 2038 01:04:04,001 --> 01:04:05,000 THIS BILL PROVIDES IT IS 2039 01:04:05,001 --> 01:04:07,000 RETROACTIVE. 2040 01:04:07,001 --> 01:04:08,000 DOESN'T APPLY TO FUTURE 2041 01:04:08,001 --> 01:04:09,000 CREDIT. 2042 01:04:09,001 --> 01:04:11,000 MANY, MANY EXPERTS HAVE LOOKED 2043 01:04:11,001 --> 01:04:14,000 AT THIS AND CONCLUDED IT WILL 2044 01:04:14,001 --> 01:04:15,000 CREDIT. 2045 01:04:15,001 --> 01:04:16,000 I RESERVE THE BALANCE OF MY 2046 01:04:16,001 --> 01:04:17,000 TIME. 2047 01:04:17,001 --> 01:04:18,000 THE CHAIR: THE GENTLEMAN 2048 01:04:18,001 --> 01:04:19,000 RESERVES. 2049 01:04:19,001 --> 01:04:20,000 THE GENTLEMAN FROM VIRGINIA IS 2050 01:04:20,001 --> 01:04:22,000 RECOGNIZED. 2051 01:04:22,001 --> 01:04:23,000 MR. GOODLATTE: MADAM SPEAKER, I 2052 01:04:23,001 --> 01:04:25,000 RECOGNIZE MYSELF FOR TWO 2053 01:04:25,001 --> 01:04:26,000 MINUTES. 2054 01:04:26,001 --> 01:04:27,000 FIRST, TO SAY THAT THE 2055 01:04:27,001 --> 01:04:28,000 GENTLEMAN FROM GEORGIA MAY 2056 01:04:28,001 --> 01:04:31,000 ASSERT THAT THIS WILL BENEFIT 2057 01:04:31,001 --> 01:04:33,000 CREDITORS, BUT I KNOW A FEW 2058 01:04:33,001 --> 01:04:35,000 CREDITORS WHO EXTEND HOME 2059 01:04:35,001 --> 01:04:37,000 MORTGAGE LOANS THAT FAVOR THIS 2060 01:04:37,001 --> 01:04:38,000 LEGISLATION. 2061 01:04:38,001 --> 01:04:41,000 OUR COUNTRY HAS FALLEN INTO A 2062 01:04:41,001 --> 01:04:43,000 SERIOUS ECONOMIC RECESSION OR A 2063 01:04:43,001 --> 01:04:46,000 RECESSION THAT'S WORSENED BY 2064 01:04:46,001 --> 01:04:47,000 THE FORECLOSURE CRISIS. 2065 01:04:47,001 --> 01:04:48,000 UNTIL WE CAN ADDRESS THE RISING 2066 01:04:48,001 --> 01:04:49,000 NUMBER OF FORECLOSURES, IT WILL 2067 01:04:49,001 --> 01:04:51,000 BE DIFFICULT FOR THE ECONOMY 2068 01:04:51,001 --> 01:04:52,000 RECOVER. 2069 01:04:52,001 --> 01:04:53,000 UNFORTUNATELY, THIS BANKRUPTC 2070 01:04:53,001 --> 01:04:56,000 AMENDMENT, WHICH I DON'T THINK 2071 01:04:56,001 --> 01:04:58,000 BELONGS IN THIS LEGISLATION TO 2072 01:04:58,001 --> 01:04:59,000 BEGIN WITH, NOT ONLY FAILS TO 2073 01:04:59,001 --> 01:05:00,000 SOLVE THE FORECLOSURE CRISIS 2074 01:05:00,001 --> 01:05:03,000 BUT ALSO WILL MAKE THE CRIS 2075 01:05:03,001 --> 01:05:04,000 DEEPER, LONGER AND WIDER. 2076 01:05:04,001 --> 01:05:07,000 ALLOWING BANKRUPTCY COURTS TO 2077 01:05:07,001 --> 01:05:08,000 MODIFY HOME MORTGAGES WILL HAVE 2078 01:05:08,001 --> 01:05:10,000 ADVERSE CONSEQUENCES FOR ALL 2079 01:05:10,001 --> 01:05:13,000 WHILE PROVIDING LITTLE REAL 2080 01:05:13,001 --> 01:05:15,000 RELIEF TO DISTRESSED BORROWERS. 2081 01:05:15,001 --> 01:05:16,000 BANKRUPTCY CRAMDOWN WILL 2082 01:05:16,001 --> 01:05:18,000 INVARIABLELY LEAD TO HIGHER 2083 01:05:18,001 --> 01:05:19,000 INTEREST RATES AND LESS 2084 01:05:19,001 --> 01:05:21,000 G 2085 01:05:21,001 --> 01:05:22,000 FUTURE BORROWERS. 2086 01:05:22,001 --> 01:05:23,000 THE GENTLEMAN MAY CLAIM THAT IT 2087 01:05:23,001 --> 01:05:25,000 WON'T EFFECT FUTURE BORROWERS, 2088 01:05:25,001 --> 01:05:26,000 BUT THE FACT OF THE MATTER IS 2089 01:05:26,001 --> 01:05:28,000 IF THIS CAN BE DONE NOW FOR 2090 01:05:28,001 --> 01:05:29,000 THIS PURPOSE, THE ADVOCATES FOR 2091 01:05:29,001 --> 01:05:31,000 THIS LEGISLATION WOULD LIKE TO 2092 01:05:31,001 --> 01:05:33,000 SEE THIS MADE IN THE FUTURE A 2093 01:05:33,001 --> 01:05:34,000 PERMANENT PROVISION IN OUR 2094 01:05:34,001 --> 01:05:36,000 BANKRUPTCY LAWS AND IT WILL 2095 01:05:36,001 --> 01:05:38,000 HAVE THE EFFECT OF CAUSING 2096 01:05:38,001 --> 01:05:40,000 INTEREST RATES TO GO UP AND 2097 01:05:40,001 --> 01:05:42,000 CREDIT TO BE LESS AVAILABLE. 2098 01:05:42,001 --> 01:05:43,000 UNEMPLOYMENT HAS BEEN THE 2099 01:05:43,001 --> 01:05:45,000 DRIVING FACTOR BEHIND MOST 2100 01:05:45,001 --> 01:05:46,000 FORECLOSURES, BUT BECAUSE 2101 01:05:46,001 --> 01:05:47,000 INDIVIDUALS WITHOUT REGULAR 2102 01:05:47,001 --> 01:05:48,000 INCOME MAY NOT FILE FOR 2103 01:05:48,001 --> 01:05:51,000 BANKRUPTCY UNDER CHAPTER 13, 2104 01:05:51,001 --> 01:05:52,000 CRAMDOWN WILL DO NOTHING FOR 2105 01:05:52,001 --> 01:05:56,000 THOSE MOST IN NEED OF RELIEF. 2106 01:05:56,001 --> 01:05:58,000 ADDITIONALLY, MANY BORROWERS 2107 01:05:58,001 --> 01:06:00,000 WALK AWAY FROM THEIR HOMES NOT 2108 01:06:00,001 --> 01:06:01,000 BECAUSE THEY CAN'T AFFORD THEIR 2109 01:06:01,001 --> 01:06:02,000 MONTHLY PAYMENTS BUT BECAUSE 2110 01:06:02,001 --> 01:06:03,000 THEIR HOMES ARE MORTGAGED FOR 2111 01:06:03,001 --> 01:06:05,000 MORE THAN THEY'RE WORTH. 2112 01:06:05,001 --> 01:06:06,000 THESE BORROWERS SHOULD LIVE 2113 01:06:06,001 --> 01:06:07,000 WITH THE RESPONSIBILITY FOR 2114 01:06:07,001 --> 01:06:09,000 THEIR DECISIONS, NOT RECEIVE 2115 01:06:09,001 --> 01:06:10,000 BAILOUTS FROM BANKRUPTCY 2116 01:06:10,001 --> 01:06:12,000 COURTS. 2117 01:06:12,001 --> 01:06:13,000 FURTHERMORE, WE MUST NOT FORGET 2118 01:06:13,001 --> 01:06:14,000 THAT CRAMDOWN WILL NOT ONLY 2119 01:06:14,001 --> 01:06:15,000 IMPACT LENDERS BUT INVESTORS AS 2120 01:06:15,001 --> 01:06:18,000 WELL. 2121 01:06:18,001 --> 01:06:19,000 THESE INVESTORS OFTEN INCLUDE 2122 01:06:19,001 --> 01:06:21,000 PENSION FUNDS REPRESENTING THE 2123 01:06:21,001 --> 01:06:23,000 RETIREMENT SAVINGS OF MILLION 2124 01:06:23,001 --> 01:06:25,000 WE SHOULD NOT PASS THE COST OF 2125 01:06:25,001 --> 01:06:27,000 IRRESPONSIBLE BORROWING AND 2126 01:06:27,001 --> 01:06:29,000 LENDING OFF ON CURRENT AND 2127 01:06:29,001 --> 01:06:30,000 FUTURE RETIREES. 2128 01:06:30,001 --> 01:06:32,000 I YIELD MYSELF AN ADDITIONAL 30 2129 01:06:32,001 --> 01:06:33,000 SECONDS. 2130 01:06:33,001 --> 01:06:35,000 THE CHAIR: THE GENTLEMAN IS 2131 01:06:35,001 --> 01:06:36,000 RECOGNID FOR 130EKDS. 2132 01:06:36,001 --> 01:06:37,000 MR. GOODLATTE: THERE IS NO 2133 01:06:37,001 --> 01:06:39,000 REASON TO ALLOW MORTGAGE 2134 01:06:39,001 --> 01:06:40,000 CRAMDOWN WITH THE HIGH COST 2135 01:06:40,001 --> 01:06:41,000 CONSIDERING IT WILL PRODUCE 2136 01:06:41,001 --> 01:06:43,000 ONLY MODERATE RESULTS AT BEST. 2137 01:06:43,001 --> 01:06:44,000 IF WE PASS THIS AMENDMENT, WHAT 2138 01:06:44,001 --> 01:06:46,000 MESSAGE 2139 01:06:46,001 --> 01:06:49,000 OF HOMEOWNERS WHO ARE MAKING THEIR PAYMENTS ON TIME? 2140 01:06:49,001 --> 01:06:51,000 HOW CAN WE ASK THEM TO FOOT THE 2141 01:06:51,001 --> 01:06:52,000 BILL FOR THEIR NEIGHBOR'S 2142 01:06:52,001 --> 01:06:56,000 MORTGAGES. 2143 01:06:56,001 --> 01:07:02,000 WHAT DO PEOPLE THINK BACK THEY 2144 01:07:02,001 --> 01:07:03,000 PAY THE PRINCIPAL -- WE MUST 2145 01:07:03,001 --> 01:07:06,000 SOLVE THE FORECLOSURE CRISIS 2146 01:07:06,001 --> 01:07:08,000 T WE MUST AVOID THE CRAMDOWN 2147 01:07:08,001 --> 01:07:14,000 THAT TAXES THE RESPONSIBLE AND 2148 01:07:14,001 --> 01:07:15,000 HOLDS NO 2149 01:07:15,001 --> 01:07:17,000 I RESERVE THE BALANCE OF MY 2150 01:07:17,001 --> 01:07:18,000 TIME. 2151 01:07:18,001 --> 01:07:20,000 THE CHAIR: THE GENTLEMAN RESERVES. 2152 01:07:20,001 --> 01:07:22,000 THE GENTLEMAN FROM GEORGIA. 2153 01:07:22,001 --> 01:07:23,000 MR. MARSHALL: I YIELD MYSELF 2154 01:07:23,001 --> 01:07:25,000 SUCH TIME AS I MAY CONSUME. 2155 01:07:25,001 --> 01:07:27,000 TO HOMEOWNERS WE WILL SAY THEIR 2156 01:07:27,001 --> 01:07:28,000 HOME WON'T DECLINE IN VALUE. 2157 01:07:28,001 --> 01:07:30,000 NO TAXPAYERS' DOLLARS GOES INTO 2158 01:07:30,001 --> 01:07:32,000 THE DEAL AT ALL. 2159 01:07:32,001 --> 01:07:35,000 TO THOSE WHO CANNOT AFFORD 2160 01:07:35,001 --> 01:07:36,000 CHAPTER 13, OBVIOUSLY OTHER 2161 01:07:36,001 --> 01:07:37,000 SOME REMEDY IS CALLED FOR THAN 2162 01:07:37,001 --> 01:07:39,000 THIS. 2163 01:07:39,001 --> 01:07:40,000 BUT FOR THOSE WHO CAN AFFORD A 2164 01:07:40,001 --> 01:07:42,000 CHAPTER 13, YOU'RE HELPING 2165 01:07:42,001 --> 01:07:43,000 EVERYBODY BY FILING A CHAPTER 2166 01:07:43,001 --> 01:07:45,000 13. 2167 01:07:45,001 --> 01:07:46,000 AND HAVING SPENT YEARS IN THIS 2168 01:07:46,001 --> 01:07:48,000 BUSINESS, CREDITORS WILL NOT BE 2169 01:07:48,001 --> 01:07:49,000 HARMED, AND THE COST OF CREDIT 2170 01:07:49,001 --> 01:07:52,000 WILL NOT GO UP. 2171 01:07:52,001 --> 01:07:53,000 BECAUSE IN THIS BILL IT ONLY 2172 01:07:53,001 --> 01:07:55,000 APPLIES TO EXISTING MORTGAGES. 2173 01:07:55,001 --> 01:07:56,000 IT DOESN'T APPLY TO FUTURE 2174 01:07:56,001 --> 01:07:59,000 MORTGAGES. 2175 01:07:59,001 --> 01:08:00,000 SO IT'S WIDELY CONCEDED. 2176 01:08:00,001 --> 01:08:02,000 UP 2177 01:08:02,001 --> 01:08:03,000 THIS IS TRULY A WIN-WIN. 2178 01:08:03,001 --> 01:08:04,000 I WAS ORIGINALLY OPPOSED. 2179 01:08:04,001 --> 01:08:05,000 I'VE BEEN IN THIS BUSINESS FOR 2180 01:08:05,001 --> 01:08:07,000 A LONG TIME. 2181 01:08:07,001 --> 01:08:09,000 I HAD A CHANGE OF HEART. 2182 01:08:09,001 --> 01:08:10,000 THE CHANGE OF HEART FOCUSES ON 2183 01:08:10,001 --> 01:08:11,000 THE CRISIS THAT WE'RE IN RIGHT 2184 01:08:11,001 --> 01:08:13,000 NOW. 2185 01:08:13,001 --> 01:08:14,000 YOU CAN GO TO MY WEBSITE AND ON 2186 01:08:14,001 --> 01:08:15,000 THE FRONT PAGE OF THE WEBSITE 2187 01:08:15,001 --> 01:08:18,000 THOSE WHO 2188 01:08:18,001 --> 01:08:19,000 FIND A DETAILED EXPLANATION WHY 2189 01:08:19,001 --> 01:08:20,000 THIS IS ABSOLUTELY THE RIGHT 2190 01:08:20,001 --> 01:08:23,000 THING TO DO. 2191 01:08:23,001 --> 01:08:26,000 AND WITH THAT IT SEEMS TO ME 2192 01:08:26,001 --> 01:08:27,000 THAT THE GENTLEMAN FROM 2193 01:08:27,001 --> 01:08:29,000 VIRGINIA HAS SAID. 2194 01:08:29,001 --> 01:08:30,000 SO I'LL RESERVE THE BALANCE OF 2195 01:08:30,001 --> 01:08:31,000 MY TIME. 2196 01:08:31,001 --> 01:08:32,000 THE CHAIR: THE GENTLEMAN 2197 01:08:32,001 --> 01:08:34,000 RESERVES. 2198 01:08:34,001 --> 01:08:35,000 THE GENTLEMAN FROM VIRGINIA IS 2199 01:08:35,001 --> 01:08:36,000 RECOGNIZED. 2200 01:08:36,001 --> 01:08:37,000 MR. GOODLATTE: MADAM CHAIRMAN, 2201 01:08:37,001 --> 01:08:39,000 I'LL YIELD 1 1/2 MINUTES TO THE 2202 01:08:39,001 --> 01:08:41,000 GENTLEMAN FROM CALIFORNIA, MR. 2203 01:08:41,001 --> 01:08:42,000 LUNGREN, A MEMBER OF THE 2204 01:08:42,001 --> 01:08:43,000 COMMITTEE. 2205 01:08:43,001 --> 01:08:44,000 THE CHAIR: THE GENTLEMAN HAS 1 2206 01:08:44,001 --> 01:08:46,000 1/2 MINUTES REMAING. 2207 01:08:46,001 --> 01:08:47,000 THE GENTLEMAN FROM CALIFORNIA IS RECOGNIZED FOR 1 1/2 2208 01:08:47,001 --> 01:08:49,000 MINUTES. 2209 01:08:49,001 --> 01:08:50,000 MR. LUNGREN: THANK YOU VERY 2210 01:08:50,001 --> 01:08:52,000 MUCH, MADAM CHAIR. 2211 01:08:52,001 --> 01:08:53,000 THIS IS A PRIME EXAMPLE OF GOOD 2212 01:08:53,001 --> 01:08:54,000 INTENTIONS RESULTING IN BAD 2213 01:08:54,001 --> 01:08:55,000 POLICY. 2214 01:08:55,001 --> 01:08:59,000 MY AREA IS ONE OF THE AREAS 2215 01:08:59,001 --> 01:09:01,000 AS BADLY AS ANY WITH RESPECT TO 2216 01:09:01,001 --> 01:09:02,000 FORECLOSURES. 2217 01:09:02,001 --> 01:09:03,000 WE HAVE NOT CLEARED THE MARKET 2218 01:09:03,001 --> 01:09:05,000 YET. 2219 01:09:05,001 --> 01:09:09,000 WE ARE IN DEEP, DEEP SHAPE. 2220 01:09:09,001 --> 01:09:10,000 AND THE LAST THING WE NEED IS 2221 01:09:10,001 --> 01:09:12,000 TO INCREASE THE LEVEL OF 2222 01:09:12,001 --> 01:09:13,000 UNCERTAINTY WITHIN THE MORTGAGE 2223 01:09:13,001 --> 01:09:15,000 MARKET, AND THAT'S WHAT THIS 2224 01:09:15,001 --> 01:09:16,000 DOES. 2225 01:09:16,001 --> 01:09:17,000 IT MAY BE LIMITED BY ITS TERMS, 2226 01:09:17,001 --> 01:09:19,000 BUT IF WE DO IT NOW WE CAN DO 2227 01:09:19,001 --> 01:09:20,000 IT AGAIN. 2228 01:09:20,001 --> 01:09:22,000 SOME PEOPLE MAY ASK, WHY WOULD 2229 01:09:22,001 --> 01:09:23,000 WE NOT ALLOW CRAMDOWN FOR 2230 01:09:23,001 --> 01:09:25,000 RESIDENTIAL HOUSING? 2231 01:09:25,001 --> 01:09:28,000 THE SUPREME COURT JUSTICE 2232 01:09:28,001 --> 01:09:30,000 STEVENS, LOOKING AT THIS WITH A 2233 01:09:30,001 --> 01:09:31,000 CASE IN PREVIOUS YEARS, SAID 2234 01:09:31,001 --> 01:09:34,000 THE FAVORABLE TREATMENT OF 2235 01:09:34,001 --> 01:09:37,000 RESIDENTIAL MORTGAGES WAS 2236 01:09:37,001 --> 01:09:38,000 INTENDED TO ENCOURAGE THE FLOW 2237 01:09:38,001 --> 01:09:41,000 OF CAPITAL INTO THE HOME LENDING MARKET. 2238 01:09:41,001 --> 01:09:42,000 THAT IS WHY THIS EXISTS IN THE 2239 01:09:42,001 --> 01:09:44,000 BANKRUPTCY CODE TODAY. 2240 01:09:44,001 --> 01:09:46,000 PRECISELY BECAUSE IT ALLOWS 2241 01:09:46,001 --> 01:09:49,000 MORE PEOPLE ACCESS TO 2242 01:09:49,001 --> 01:09:50,000 PURCHASING HOMES 2243 01:09:50,001 --> 01:09:53,000 ARE NOT AS HIGH AS THEY 2244 01:09:53,001 --> 01:09:55,000 OTHERWISE WOULD BE. 2245 01:09:55,001 --> 01:09:58,000 PRECISELY BECAUSE YOU CANNOT 2246 01:09:58,001 --> 01:10:01,000 ALLOW CRMDOWN 2247 01:10:01,001 --> 01:10:02,000 PROCEEDINGS NOW. 2248 01:10:02,001 --> 01:10:04,000 THAT'S THE SOLE SUBSTANCE OF 2249 01:10:04,001 --> 01:10:05,000 THE REASON WHY WE HAVE THIS. 2250 01:10:05,001 --> 01:10:07,000 WE'RE GOING TO REVERSE THIS AS 2251 01:10:07,001 --> 01:10:09,000 A MATTER OF PUBLIC POLICY. 2252 01:10:09,001 --> 01:10:11,000 IT IS GOING TO CREATE GREATER 2253 01:10:11,001 --> 01:10:12,000 UNCERTAINTY. 2254 01:10:12,001 --> 01:10:14,000 AND THEREBY INCREASE THE 2255 01:10:14,001 --> 01:10:15,000 PREMIUMS IN THE FUTURE FOR 2256 01:10:15,001 --> 01:10:18,000 EVERYBODY ELSE AND DENY ACCES 2257 01:10:18,001 --> 01:10:21,000 TO THE HOUSING MARKET FOR THOSE 2258 01:10:21,001 --> 01:10:25,000 WE SEEK TO HELP. 2259 01:10:25,001 --> 01:10:26,000 THE CHAIR: THE GENTLEMAN'S TIME 2260 01:10:26,001 --> 01:10:29,000 HAS EXPIRED. 2261 01:10:29,001 --> 01:10:30,000 THE GENTLEMAN FROM GEORGIA IS 2262 01:10:30,001 --> 01:10:32,000 RECOGNIZED. 2263 01:10:32,001 --> 01:10:33,000 MR. MARSHALL: I'LL SIMPLY 2264 01:10:33,001 --> 01:10:35,000 REPEAT, BECAUSE THIS IS 2265 01:10:35,001 --> 01:10:36,000 APPLICABLE TO EXISTING 2266 01:10:36,001 --> 01:10:37,000 MORTGAGES IT WILL HAVE NO 2267 01:10:37,001 --> 01:10:38,000 EFFECT ON THE COST OF FUTURE 2268 01:10:38,001 --> 01:10:40,000 MORTGAGES. 2269 01:10:40,001 --> 01:10:41,000 THE BEAUTY OF IT IS WE'LL HAVE 2270 01:10:41,001 --> 01:10:42,000 FEWER FORECLOSURES, SO THE 2271 01:10:42,001 --> 01:10:44,000 GENTLEMAN ROM CALIFORNIA AND 2272 01:10:44,001 --> 01:10:45,000 THOSE IN CALIFORNIA WHO ARE IN 2273 01:10:45,001 --> 01:10:47,000 NEIGHBORHOODS THAT ARE REALLY 2274 01:10:47,001 --> 01:10:50,000 STRUGGLING WITH THIS HOUSING 2275 01:10:50,001 --> 01:10:52,000 CRISIS COLLAPSING BECAUSE OF 2276 01:10:52,001 --> 01:10:53,000 VACANCIES, ALL OF THOSE WILL BE 2277 01:10:53,001 --> 01:10:55,000 HELPED BY THIS WITHOUT PUTTING 2278 01:10:55,001 --> 01:10:57,000 A SINGLE DIME OF TAXPAYER DOLLARS IN THE DEAL. 2279 01:10:57,001 --> 01:10:59,000 IT SEEMS TO ME THAT'S THE 2280 01:10:59,001 --> 01:11:00,000 COMPLETE JUSTIFICATION FOR 2281 01:11:00,001 --> 01:11:01,000 DOING THIS. 2282 01:11:01,001 --> 01:11:02,000 WE SHOULD HAVE DONE IT LONG 2283 01:11:02,001 --> 01:11:03,000 AGO. 2284 01:11:03,001 --> 01:11:04,000 I RESERVE THE BALANCE OF MY 2285 01:11:04,001 --> 01:11:05,000 TIME. 2286 01:11:05,001 --> 01:11:08,000 THE CHAIR: THE GENTLEMAN FROM 2287 01:11:08,001 --> 01:11:09,000 VIRG 2288 01:11:09,001 --> 01:11:11,000 THE GENTLEMAN FROM GEORGIA IS 2289 01:11:11,001 --> 01:11:12,000 RECOGNIZED. 2290 01:11:12,001 --> 01:11:15,000 MR. MARSHALL: I YIELD MYSELF -- 2291 01:11:15,001 --> 01:11:18,000 HOW MUCH TIME DO I HAVE LEFT? 2292 01:11:18,001 --> 01:11:19,000 THE CHAIR: THE GENTLEMAN HAS 2293 01:11:19,001 --> 01:11:20,000 ONE MINUTE AND ONE HALF 2294 01:11:20,001 --> 01:11:22,000 REMAINING. 2295 01:11:22,001 --> 01:11:24,000 MR. MARSHALL: I APPRECIATE THAT. 2296 01:11:24,001 --> 01:11:25,000 YOU KNOW, THERE'S A THING 2297 01:11:25,001 --> 01:11:28,000 CALLED THE TRAGEDY OF THE 2298 01:11:28,001 --> 01:11:29,000 COMMONS, AND IT'S A THEORETICAL 2299 01:11:29,001 --> 01:11:33,000 CONCEPT THAT APPLIES IN THIS 2300 01:11:33,001 --> 01:11:35,000 PARTICULAR CASE. 2301 01:11:35,001 --> 01:11:38,000 COMMON AREAS FOR GRAZING, AND 2302 01:11:38,001 --> 01:11:41,000 THEN THOSE 2303 01:11:41,001 --> 01:11:42,000 IN AND OVERFWRAZE THAT AREA. 2304 01:11:42,001 --> 01:11:44,000 AND THE EFFECT IS NOT -- 2305 01:11:44,001 --> 01:11:45,000 OVERGRAZE THAT AREA. 2306 01:11:45,001 --> 01:11:49,000 AND THE EFFECT IS NOT THAT 2307 01:11:49,001 --> 01:11:50,000 EVERYBODY GOT POORER. 2308 01:11:50,001 --> 01:11:51,000 I AM NOT INTERESTED IN FOOLING 2309 01:11:51,001 --> 01:11:53,000 AROUND WITH ME IN BANKRUPTCY 2310 01:11:53,001 --> 01:11:55,000 COURT OR ANYTHING LIKE THAT. 2311 01:11:55,001 --> 01:11:56,000 BUT COMBINED CREDITORS ARE 2312 01:11:56,001 --> 01:11:59,000 ADVANTAGED BY HAVING FEWER 2313 01:11:59,001 --> 01:12:00,000 FORECLOSURES ON THE MARKET IN A 2314 01:12:00,001 --> 01:12:02,000 SITUATION LIKE THIS. 2315 01:12:02,001 --> 01:12:03,000 HAVING REPRESENTED 2316 01:12:03,001 --> 01:12:06,000 OF BANKS, HAVING SPENT AN AWFUL 2317 01:12:06,001 --> 01:12:08,000 LOT OF MY LIFE AS A BANKRUPTCY LAWYER, LAW PROFESSOR, 2318 01:12:08,001 --> 01:12:09,000 COMMERCIAL LITIGATOR, I'M 2319 01:12:09,001 --> 01:12:13,000 ABSOLUTELY CONVINCED THAT I WAS 2320 01:12:13,001 --> 01:12:14,000 WRONTO INITIALLY REJECT THIS 2321 01:12:14,001 --> 01:12:15,000 CONCEPT. 2322 01:12:15,001 --> 01:12:17,000 THAT IF WE APPLY IT NOW -- WE 2323 01:12:17,001 --> 01:12:19,000 SHOULD HAVE DONE IT A COUPLE 2324 01:12:19,001 --> 01:12:20,000 YEARS AGO -- BUT IF WE APPLY IT 2325 01:12:20,001 --> 01:12:22,000 NOW WE'LL CATCH AN ONGOING WAVE 2326 01:12:22,001 --> 01:12:23,000 OF FORECLOSURES. 2327 01:12:23,001 --> 01:12:24,000 IT WILL HELP THE INDIVIDUALS 2328 01:12:24,001 --> 01:12:26,000 WHO CAN RESCUE THR HOMES. 2329 01:12:26,001 --> 01:12:28,000 IT WILL LESSEN THE NUMBER OF 2330 01:12:28,001 --> 01:12:29,000 FORECLOSURES CONSEQUENTLY 2331 01:12:29,001 --> 01:12:30,000 HELPING ALL OTHER HOMEOWNERS, 2332 01:12:30,001 --> 01:12:32,000 NO TAXPAYER DOLLARS ARE 2333 01:12:32,001 --> 01:12:33,000 INVOLVED. 2334 01:12:33,001 --> 01:12:35,000 AND CREDITORS ARE ASSISTED BY 2335 01:12:35,001 --> 01:12:37,000 THIS WITH NO THREAT WHATSOEVER 2336 01:12:37,001 --> 01:12:39,000 TO AN INCREASE IN MORTGAGE 2337 01:12:39,001 --> 01:12:40,000 CRIS. 2338 01:12:40,001 --> 01:12:41,000 WE PASSED THIS BEFORE. 2339 01:12:41,001 --> 01:12:42,000 WE SHOULD PASS IT AGAIN. 2340 01:12:42,001 --> 01:12:44,000 IT'S APPROPRIATE TO THIS 2341 01:12:44,001 --> 01:12:45,000 PARTICULAR PEES OF LEGISLATION 2342 01:12:45,001 --> 01:12:46,000 BECAUSE THE WORK 'RE DOING -- 2343 01:12:46,001 --> 01:12:49,000 PIECE OF LEGISLATION BECAUSE 2344 01:12:49,001 --> 01:12:51,000 PROMPTED BY THE CREDIT CRIS 2345 01:12:51,001 --> 01:12:52,000 THAT WAS PROMPTED INITIALLY BY 2346 01:12:52,001 --> 01:12:53,000 HOUSING ISSUES. 2347 01:12:53,001 --> 01:12:56,000 SO HOUSING SHOULD BE ADDRESSED 2348 01:12:56,001 --> 01:12:57,000 AS PART OF FIXING THE OVERALL 2349 01:12:57,001 --> 01:12:58,000 FINANCIAL SITUATION. 2350 01:12:58,001 --> 01:13:00,000 THE CHAIR: THE GENTLEMAN'S TIME 2351 01:13:00,001 --> 01:13:01,000 HAS EXPIRED. 2352 01:13:01,001 --> 01:13:03,000 MR. MARSHALL: I THANK THE 2353 01:13:03,001 --> 01:13:05,000 SPEAKER. THE CHAIR: THE GENTLEMAN'S TIME 2354 01:13:05,001 --> 01:13:06,000 HAS EXPIRED. 2355 01:13:06,001 --> 01:13:07,000 FOR WHAT PURPOSE DOES THE 2356 01:13:07,001 --> 01:13:08,000 GENTLEMAN FROM CALIFORNIA SEEK 2357 01:13:08,001 --> 01:13:10,000 RECOGNITION? 2358 01:13:10,001 --> 01:13:11,000 >> MADAM SPEAKER, I'D ASK 2359 01:13:11,001 --> 01:13:12,000 UNANIMOUS CONSENT 2360 01:13:12,001 --> 01:13:13,000 EXTEND MY REMARKS IN OPPOSITION 2361 01:13:13,001 --> 01:13:14,000 TO THIS AMENDMENT. 2362 01:13:14,001 --> 01:13:15,000 THE CHAIR: WITHOUT OBJECTION, 2363 01:13:15,001 --> 01:13:17,000 SO ORDERED. 2364 01:13:17,001 --> 01:13:18,000 THE QUESTION IS ON THE 2365 01:13:18,001 --> 01:13:20,000 AMENDMENT OFFERED BY THE 2366 01:13:20,001 --> 01:13:22,000 GENTLEMAN FROM GEORGIA. THOSE IN FAVOR SAY AYE. 2367 01:13:22,001 --> 01:13:24,000 THOSE OPPOSED, NO. 2368 01:13:24,001 --> 01:13:25,000 IN THE OPINION OF THE CHAIR, 2369 01:13:25,001 --> 01:13:27,000 THE AYES HAVE IT. 2370 01:13:27,001 --> 01:13:29,000 THE AMENDMENT IS -- 2371 01:13:29,001 --> 01:13:31,000 >> MADAM SPEAKER, I'D ASK FOR A 2372 01:13:31,001 --> 01:13:32,000 RECORDED VOTE. 2373 01:13:32,001 --> 01:13:33,000 THE CHAIR: PURSUANT TO CLAUSE 6 2374 01:13:33,001 --> 01:13:35,000 OF RULE 18, FURTH PROCEEDINGS 2375 01:13:35,001 --> 01:13:36,000 ON THE AMENDMENT OFFERED BY THE 2376 01:13:36,001 --> 01:13:42,000 GENTLEMAN FROM GE 2377 01:13:42,001 --> 01:13:46,000 POSTPONED. 2378 01:13:46,001 --> 01:13:47,000 IT IS NOW IN ORDER TO CONSIDER 2379 01:13:47,001 --> 01:13:53,000 AMENDMENT NUMBER 26 PRINTED IN 2380 01:13:53,001 --> 01:13:55,000 HOUSE REPORT 111-370. 2381 01:13:55,001 --> 01:13:56,000 FOR WHAT PURPOSE DOES THE 2382 01:13:56,001 --> 01:13:58,000 GENTLEMAN FRO 2383 01:13:58,001 --> 01:14:03,000 MR. GARRETT: AMENDMENT AT THE 2384 01:14:03,001 --> 01:14:05,000 DESK. 2385 01:14:05,001 --> 01:14:06,000 AMENDMENT. 2386 01:14:06,001 --> 01:14:07,000 THE CHAIR: FOR WHAT PURPOSE 2387 01:14:07,001 --> 01:14:08,000 DOES THE GENTLEMAN FROM NEW 2388 01:14:08,001 --> 01:14:10,000 JERSEY RISE? 2389 01:14:10,001 --> 01:14:12,000 MR. GARRETT: I HAVE AN AMENDMENT AT THE DESK. 2390 01:14:12,001 --> 01:14:13,000 THE CHAIR: THE CLERK WILL 2391 01:14:13,001 --> 01:14:15,000 DESIGNATE THE AMENDMENT. 2392 01:14:15,001 --> 01:14:16,000 THE CLERK: AMENDMENT NUMBER 26 2393 01:14:16,001 --> 01:14:17,000 PRINTED IN HOUSE REPORT 111-370 2394 01:14:17,001 --> 01:14:18,000 OFFE 2395 01:14:18,001 --> 01:14:20,000 JERSEY. 2396 01:14:20,001 --> 01:14:21,000 THE CHAIR: PURSUANT TO HOUSE 2397 01:14:21,001 --> 01:14:22,000 RESOLUTION 964, THE GENTLEMAN 2398 01:14:22,001 --> 01:14:23,000 FROM NEW JERSEY, MR. GARRETT, 2399 01:14:23,001 --> 01:14:25,000 AND A MEMBER OPPOSED, EACH WILL 2400 01:14:25,001 --> 01:14:27,000 CONTROL FIVE MINUTES. 2401 01:14:27,001 --> 01:14:28,000 THE CHAIR RECOGNIZES THE 2402 01:14:28,001 --> 01:14:29,000 GENTLEMAN FROM NEW JERSEY. 2403 01:14:29,001 --> 01:14:30,000 MR. GARRETT: AND I THANK THE 2404 01:14:30,001 --> 01:14:33,000 MADAM CHAIR. 2405 01:14:33,001 --> 01:14:34,000 I WAS JUST AT THE MICROPHONE A 2406 01:14:34,001 --> 01:14:36,000 MOMENT AGO AND SPEAKING ABOUT 2407 01:14:36,001 --> 01:14:37,000 THE RECOGNI 2408 01:14:37,001 --> 01:14:39,000 HAVE ON BOTH SIDES OF THE AISLE 2409 01:14:39,001 --> 01:14:40,000 THAT THE C.R.A.'S, THE CREDIT 2410 01:14:40,001 --> 01:14:42,000 RATING AGENCIES, WERE PART IN 2411 01:14:42,001 --> 01:14:43,000 PAR SELL TO THE FINANCIAL 2412 01:14:43,001 --> 01:14:45,000 SITUATION THAT WE FIND 2413 01:14:45,001 --> 01:14:48,000 OURSELVES IN RIGHT NOW. 2414 01:14:48,001 --> 01:14:49,000 AND DURING THE TIME I RAISED 2415 01:14:49,001 --> 01:14:51,000 TWO -- PROBABLY THREE 2416 01:14:51,001 --> 01:14:53,000 SIGNIFICANT POINTS ON THIS AND 2417 01:14:53,001 --> 01:14:54,000 WHAT WE NEED TO DO WHEN IT 2418 01:14:54,001 --> 01:14:55,000 COMES TO REFORM. 2419 01:14:55,001 --> 01:14:59,000 I MENTIONED THE FACT THAT WE 2420 01:14:59,001 --> 01:15:01,000 NEED TO REDUCE INVESTORS' 2421 01:15:01,001 --> 01:15:03,000 RELIANCE UPON RATING AGENCIES. 2422 01:15:03,001 --> 01:15:06,000 I MENTIONED ALSO THATE NEED 2423 01:15:06,001 --> 01:15:08,000 TO ENCOURAGE INVESTORS DUE 2424 01:15:08,001 --> 01:15:11,000 DILIGENCE THAT SORT OF GOES 2425 01:15:11,001 --> 01:15:13,000 WITH IT. 2426 01:15:13,001 --> 01:15:15,000 AND THE THIRD POINT IS IT 2427 01:15:15,001 --> 01:15:17,000 RAISE IS WE NEED TO HAVE INCREASED COMPETION BETWEEN 2428 01:15:17,001 --> 01:15:19,000 THE CREDIT RATING AGENCIES. 2429 01:15:19,001 --> 01:15:20,000 UNFORTUNATELY, IF YOU LOOK AT 2430 01:15:20,001 --> 01:15:21,000 THE BILL BEFORE US, TITLE 5 OF 2431 01:15:21,001 --> 01:15:24,000 THE BILL, INCLUDES A NUMBER OF 2432 01:15:24,001 --> 01:15:26,000 PROVISIONS THAT WERE BASICALLY 2433 01:15:26,001 --> 01:15:29,000 EXACERBATE THE CURRENT PROBLEMS WITHIN THE INDUSTRY. 2434 01:15:29,001 --> 01:15:30,000 AND AS I SAID ON THE FLOOR 2435 01:15:30,001 --> 01:15:32,000 YESTERDAY, TO ACTUALLY MAKE IT 2436 01:15:32,001 --> 01:15:34,000 HARDER, MORE DIFFICULT FOR INVESTORS TO GET THE 2437 01:15:34,001 --> 01:15:36,000 INRMATION THAT THEY NEED IN 2438 01:15:36,001 --> 01:15:37,000 ORDER TO MAKE THOSE DECISIO 2439 01:15:37,001 --> 01:15:38,000 THAT THEY HAVE TO BEFORE THEY 2440 01:15:38,001 --> 01:15:41,000 INVEST. 2441 01:15:41,001 --> 01:15:43,000 . 2442 01:15:43,001 --> 01:15:44,000 WE PASSED THE CREDIT AGENCY 2443 01:15:44,001 --> 01:15:46,000 REFORM LEGISLATION ABOUT TEE 2444 01:15:46,001 --> 01:15:47,000 YEARS AGO, THE MAIN FOEOUS WAS 2445 01:15:47,001 --> 01:15:48,000 TO DO WHAT? 2446 01:15:48,001 --> 01:15:50,000 I CREASE COMPETION BETWEEN 2447 01:15:50,001 --> 01:15:51,000 THE VARIOUS RATING ANCIES. 2448 01:15:51,001 --> 01:15:53,000 THERE WAS ONLY ABOUT THREE 2449 01:15:53,001 --> 01:15:54,000 MAJOR ONES BUT WE WERE GOING TO 2450 01:15:54,001 --> 01:15:56,000 TRY TO MAKE SMALL ONES GET INTO 2451 01:15:56,001 --> 01:15:57,000 THE MARKET WITH MORE 2452 01:15:57,001 --> 01:15:58,000 COMPETION. 2453 01:15:58,001 --> 01:16:00,000 MAYBE WE COULD ELIMINATE SOME OF THE PROBLEMS. 2454 01:16:00,001 --> 01:16:02,000 THAT WAS THREE YEARS AGO. 2455 01:16:02,001 --> 01:16:04,000 THE REASON, THEN, I VOTED JUST 2456 01:16:04,001 --> 01:16:05,000 A SHORT TIME AGO THIS YEAR 2457 01:16:05,001 --> 01:16:06,000 AGAINST THE LEGISLATION THAT 2458 01:16:06,001 --> 01:16:09,000 CAME OUT OF COMMITTEE THAT WAS 2459 01:16:09,001 --> 01:16:11,000 GOING TO TRY TO REFORM THE 2460 01:16:11,001 --> 01:16:12,000 C.R.A.'S BECAUSE BECAUSE -- WAS 2461 01:16:12,001 --> 01:16:13,000 BECAUSE IT DID THE EXACT 2462 01:16:13,001 --> 01:16:14,000 OPPOSITE. 2463 01:16:14,001 --> 01:16:15,000 IT DECREASED THE COMPETITION IN 2464 01:16:15,001 --> 01:16:17,000 THE INDUSTRY. 2465 01:16:17,001 --> 01:16:18,000 I THINK WE NEED MORE COMPETITION. 2466 01:16:18,001 --> 01:16:19,000 THE REASON THAT THE LEGISLATION 2467 01:16:19,001 --> 01:16:21,000 THAT CAME OUT OF COMMITTEE I 2468 01:16:21,001 --> 01:16:23,000 THOUGHT WOULD DECREASE 2469 01:16:23,001 --> 01:16:24,000 COMPETITION IS BECAUSE, WELL, 2470 01:16:24,001 --> 01:16:26,000 IT WOULD IMPOSE A WHOLE BUNCH 2471 01:16:26,001 --> 01:16:28,000 OF NEW LIABI 2472 01:16:28,001 --> 01:16:29,000 C.R.A.'S AND IT WAS BASICALLY 2473 01:16:29,001 --> 01:16:30,000 DISCOURAGE THEM TO GET INTO THE 2474 01:16:30,001 --> 01:16:32,000 INDUSTRY AT ALL. 2475 01:16:32,001 --> 01:16:34,000 AND THAT'S MAYBE ONE OF THE 2476 01:16:34,001 --> 01:16:35,000 REONS WHY IN THE COMMITTEE'S 2477 01:16:35,001 --> 01:16:36,000 LANGUAGE THERE IS PROVISION IN 2478 01:16:36,001 --> 01:16:38,000 IT THAT SAYS, WE ARE NOT GOING 2479 01:16:38,001 --> 01:16:42,000 TO LET YOU OUT. 2480 01:16:42,001 --> 01:16:44,000 ONCE YOU ARE AN NSRO, WE ARE 2481 01:16:44,001 --> 01:16:46,000 NOT GOING THROAT YOU OUT OF IT 2482 01:16:46,001 --> 01:16:47,000 BECAUSE WITH ALL THIS 2483 01:16:47,001 --> 01:16:49,000 ADDITIONAL LIABILITY, NO ONE 2484 01:16:49,001 --> 01:16:50,000 WOULD WANT TO BE A 2485 01:16:50,001 --> 01:16:51,000 ANYMORE. 2486 01:16:51,001 --> 01:16:52,000 THE AMENDMENT THAT WE HAVE 2487 01:16:52,001 --> 01:16:53,000 BEFORE US RECOGNIZES THAT 2488 01:16:53,001 --> 01:16:55,000 PROBLEM. 2489 01:16:55,001 --> 01:16:56,000 WE WANT TO HAVE COMPETITION BUT 2490 01:16:56,001 --> 01:16:57,000 YOU HAVE ALL THESE ADDITIONAL 2491 01:16:57,001 --> 01:16:59,000 RULES, REGULATION, AND 2492 01:16:59,001 --> 01:17:00,000 LIBLINGTS ON THEM THEY ARE ALL 2493 01:17:00,001 --> 01:17:04,000 GOING -- LIABILITIES ON THEM 2494 01:17:04,001 --> 01:17:06,000 THEY ARE ALL GOING TO FLEE. 2495 01:17:06,001 --> 01:17:07,000 WE BELIEVE WE CAN COME TO A 2496 01:17:07,001 --> 01:17:09,000 MIDDLE GROUND AND THAT IS TO 2497 01:17:09,001 --> 01:17:10,000 SAY ALLOW THOSE C.R.A.'S OF THE 2498 01:17:10,001 --> 01:17:12,000 SMALLER SIZE, THAT IS NET 2499 01:17:12,001 --> 01:17:15,000 REVENUES OF $250 MILLION OR 2500 01:17:15,001 --> 01:17:17,000 LESS IN A YEAR TO BE ABLE TO 2501 01:17:17,001 --> 01:17:18,000 RETAIN THE ABILITY TO DEREGISTER. 2502 01:17:18,001 --> 01:17:19,000 THAT'S WHAT THE LEGISLATION 2503 01:17:19,001 --> 01:17:20,000 DOES BEFORES US. 2504 01:17:20,001 --> 01:17:21,000 WITH THAT I RESERVE THE BALANCE 2505 01:17:21,001 --> 01:17:22,000 OF MY TIME. 2506 01:17:22,001 --> 01:17:25,000 THE CHAIR: THE GENTLEMAN 2507 01:17:25,001 --> 01:17:26,000 RESERVES. FOR WHAT PURPOSE DOES THE 2508 01:17:26,001 --> 01:17:28,000 GENTLEMAN FROM PENNSYLVANIA 2509 01:17:28,001 --> 01:17:29,000 MR. KANJORSKI: I CLAIM THE TIME 2510 01:17:29,001 --> 01:17:30,000 IN OPPOSITION. THE CHAIR: THE GENTLEMAN IS 2511 01:17:30,001 --> 01:17:33,000 RECOGNIZED FOR FIVE MINUTES. 2512 01:17:33,001 --> 01:17:35,000 MR. KANJORSKI: MADAM 2513 01:17:35,001 --> 01:17:36,000 CHAIRWOMAN, UNDER CURRENT LAW 2514 01:17:36,001 --> 01:17:37,000 CREDIT RATING AGENCIES OPERATE 2515 01:17:37,001 --> 01:17:39,000 UNDER A VOLUNTARY SYSTEM OF 2516 01:17:39,001 --> 01:17:41,000 REGISTRATION WITH 2517 01:17:41,001 --> 01:17:42,000 STATES SECURITIES AND EXCHANGE COMMISSION. 2518 01:17:42,001 --> 01:17:45,000 WE CHANGE THAT WITH A PROVISION 2519 01:17:45,001 --> 01:17:46,000 IN THE MANAGER'S AMENDMENT THAT 2520 01:17:46,001 --> 01:17:48,000 WOULD REQUIRE ALL RATING 2521 01:17:48,001 --> 01:17:49,000 AGENCIES WITH APPROPRIATE 2522 01:17:49,001 --> 01:17:52,000 EXEMPTIONS TO REGISTER WITH THE 2523 01:17:52,001 --> 01:17:53,000 COMMISSION. 2524 01:17:53,001 --> 01:17:55,000 THE GENTLEMAN FROM NEW JERSEY'S 2525 01:17:55,001 --> 01:17:57,000 AMENDMENT INSERTS A VOLUNTARY 2526 01:17:57,001 --> 01:17:58,000 WITHDRAWAL FROM REGISTRATION 2527 01:17:58,001 --> 01:18:00,000 WITH THE COMMISSION FOR THOS 2528 01:18:00,001 --> 01:18:04,000 RATING AGENCIES WHO EARN LESS 2529 01:18:04,001 --> 01:18:05,000 THAN $250 MILLION. 2530 01:18:05,001 --> 01:18:06,000 THIS AMENDMENT WOULD HAVE THE 2531 01:18:06,001 --> 01:18:09,000 EFFECT OF ALLOWING THE SMALLEST 2532 01:18:09,001 --> 01:18:11,000 OF RATING AGENCIES NOW 2533 01:18:11,001 --> 01:18:13,000 REGISTERED AS NATIONALLY 2534 01:18:13,001 --> 01:18:16,000 RECOGNIZED STATISTICAL RATING 2535 01:18:16,001 --> 01:18:17,000 ORGANIZATIONS TO OPT OUT OF THE 2536 01:18:17,001 --> 01:18:20,000 SYSTEM AT SOME TIME IN THE FUTURE. 2537 01:18:20,001 --> 01:18:21,000 THE PROPOSAL WOULD ALSO 2538 01:18:21,001 --> 01:18:23,000 MAINTAIN THE CLOSE SUPERVISION 2539 01:18:23,001 --> 01:18:25,000 OF THE LARGEST RATING AGENCIES, 2540 01:18:25,001 --> 01:18:28,000 THE ONES MOST LIKELY TO ISSUE 2541 01:18:28,001 --> 01:18:30,000 THE RATINGS USED BY INVESTORS. 2542 01:18:30,001 --> 01:18:31,000 BASED ON THAT, MADAM 2543 01:18:31,001 --> 01:18:34,000 I HAVE NO OPPOSITION TO THIS 2544 01:18:34,001 --> 01:18:38,000 AMENDMEN 2545 01:18:38,001 --> 01:18:41,000 THE CHAIR: DOES THE GENTLEMAN RESERVE? 2546 01:18:41,001 --> 01:18:42,000 MR. KANJORSKI: I RESERVE MY TIME. 2547 01:18:42,001 --> 01:18:43,000 THE CHAIR: THE GENTLEMAN FROM 2548 01:18:43,001 --> 01:18:45,000 NEW JERSEY IS RECOGNIZED. 2549 01:18:45,001 --> 01:18:48,000 MR. GARRETT: IF THE GENTLEMAN 2550 01:18:48,001 --> 01:18:49,000 FROM PENNSYLVANIA -- IF THE 2551 01:18:49,001 --> 01:18:51,000 GENTLEMAN FROM PENNSYLVANIA HAS 2552 01:18:51,001 --> 01:18:53,000 NO OPPOSITION AND HAS NO OTHER 2553 01:18:53,001 --> 01:18:54,000 SPEAKERS, IF YOU YIELD BACK, 2554 01:18:54,001 --> 01:18:56,000 I'LL JUST CLOSE. 2555 01:18:56,001 --> 01:18:57,000 MR. KANJORSKI: I YIELD BACK MY 2556 01:18:57,001 --> 01:18:58,000 TIME. THE CHAIR: THE GENTLEMAN 2557 01:18:58,001 --> 01:18:59,000 YIELDS. 2558 01:18:59,001 --> 01:19:00,000 E GENTLEMAN OM NEW JERSEY. 2559 01:19:00,001 --> 01:19:01,000 MR. GARRETT: I'LL CLOSE BY 2560 01:19:01,001 --> 01:19:03,000 SAYING I THANK THE GENTLEMAN 2561 01:19:03,001 --> 01:19:04,000 FOR HIS SUPPORT OF THE 2562 01:19:04,001 --> 01:19:06,000 LEGISLATION. 2563 01:19:06,001 --> 01:19:09,000 NO OPPOSITION TO THE AMENDMENT. 2564 01:19:09,001 --> 01:19:10,000 AND APPRECIATE THE VERY MANY 2565 01:19:10,001 --> 01:19:12,000 MONTHSF WORKING TOGETHER ON 2566 01:19:12,001 --> 01:19:14,000 THIS ISSUE AND OTHER ISSUES AS 2567 01:19:14,001 --> 01:19:15,000 WITH THAT I YIELD BACK. 2568 01:19:15,001 --> 01:19:16,000 THE CHAIR: THE GENTLEMAN YIELDS. 2569 01:19:16,001 --> 01:19:18,000 THE QUESTION IS ON THE 2570 01:19:18,001 --> 01:19:19,000 AMENDMENT OFFERED BY THE 2571 01:19:19,001 --> 01:19:20,000 GENTLEMAN FROM NEW JERSEY. 2572 01:19:20,001 --> 01:19:24,000 SO MANY AS ARE IN FAVOR SAY AYE. 2573 01:19:24,001 --> 01:19:25,000 THOSE OPPOSED, NO. 2574 01:19:25,001 --> 01:19:33,000 IN THE OPINION OF THE CHAIR, 2575 01:19:33,001 --> 01:19:35,000 2576 01:19:35,001 --> 01:19:37,000 THE CHAIR UNDERSTANDS THAT 2577 01:19:37,001 --> 01:19:40,000 AMENDMENTS 29, 30, AND 31 WILL 2578 01:19:40,001 --> 01:19:42,000 NOT BE OFFERED. 2579 01:19:42,001 --> 01:19:44,000 IT IS NOW IN ORDER TO CONSIDER 2580 01:19:44,001 --> 01:19:47,000 AMENDMENT NUMBER 32 PRINTED IN 2581 01:19:47,001 --> 01:19:48,000 HOUSE REPORT 2582 01:19:48,001 --> 01:19:52,000 FOR WHAT PURPOSE DOES THE 2583 01:19:52,001 --> 01:19:56,000 GENTLEWOMAN FROMLLINOIS RISE? 2584 01:19:56,001 --> 01:19:58,000 MS. SCHAKOWSKY: 2585 01:19:58,001 --> 01:19:59,000 I HAVE AN AMENDMENT AT E DESK. 2586 01:19:59,001 --> 01:20:01,000 THE CHAIR: THE CLERK WILL DESIGNATE THE AMENDMENT. 2587 01:20:01,001 --> 01:20:03,000 THE CLERK: AMENDMENT NUMBER 32, 2588 01:20:03,001 --> 01:20:05,000 PRINTED IN HOUSE REPORT NUMBER 2589 01:20:05,001 --> 01:20:07,000 111-370, OFF 2590 01:20:07,001 --> 01:20:08,000 SCHAKOWSKY OF ILLINOIS. 2591 01:20:08,001 --> 01:20:10,000 THE CHAIR: PURSUANT TO HOUSE 2592 01:20:10,001 --> 01:20:12,000 RESOLUTION 964, THE GENTLEWOMAN 2593 01:20:12,001 --> 01:20:13,000 FROM ILLINOIS, MS. SCHAKOWSKY, 2594 01:20:13,001 --> 01:20:14,000 AND A MEMBER OPPOSED, EACH WILL 2595 01:20:14,001 --> 01:20:16,000 CONTROL FIVE MINUTES. 2596 01:20:16,001 --> 01:20:17,000 THE CHAIR RECOGNIZES 2597 01:20:17,001 --> 01:20:20,000 GENTLEWOMAN FROM ILLINOIS. 2598 01:20:20,001 --> 01:20:21,000 MS. SCHAKOWSKY: THANK YOU, 2599 01:20:21,001 --> 01:20:25,000 MADAM CHAIRMAN. 2600 01:20:25,001 --> 01:20:27,000 I WANT TO THANK REPRESENTATIVE 2601 01:20:27,001 --> 01:20:28,000 TITUS FOR JOINING ME IN 2602 01:20:28,001 --> 01:20:30,000 OFFERING THIS IMPORTANT 2603 01:20:30,001 --> 01:20:32,000 AMENDMENT TO MAKE SURE THAT THE 2604 01:20:32,001 --> 01:20:33,000 NEW CONSUMER FINANCIAL 2605 01:20:33,001 --> 01:20:36,000 PROTECTION AGENCY HAS AUTHORITY 2606 01:20:36,001 --> 01:20:37,000 TO REGULATE REVERSE MORTGAGES. 2607 01:20:37,001 --> 01:20:41,000 IT IS A PROPOSAL THAT IS 2608 01:20:41,001 --> 01:20:43,000 VERSE MORTGAGES ARE UNIQUE 2609 01:20:43,001 --> 01:20:45,000 MORTGAGE PRODUCTS THAT ALLOW 2610 01:20:45,001 --> 01:20:47,000 HOMEOWNERS OVER AGE 62 TO 2611 01:20:47,001 --> 01:20:48,000 BORROW AGAINST THEIR HOMES TO 2612 01:20:48,001 --> 01:20:49,000 RECEIVE A CASH OR LINE OF 2613 01:20:49,001 --> 01:20:51,000 CREDIT. 2614 01:20:51,001 --> 01:20:52,000 THE LOAN IS PAID BACK WHEN THE 2615 01:20:52,001 --> 01:20:53,000 HOMEOWNER DIES OR SELLS THE 2616 01:20:53,001 --> 01:20:54,000 HOME. 2617 01:20:54,001 --> 01:20:58,000 IN THE PAST THREE YEARS MORE 2618 01:20:58,001 --> 01:21:00,000 REVERSE MORTGAGES HAVE BEEN 2619 01:21:00,001 --> 01:21:01,000 ISSUED TO SENIORS. 2620 01:21:01,001 --> 01:21:03,000 UNFORTUNATELY, ALL IS NOT WELL 2621 01:21:03,001 --> 01:21:05,000 IN THE REVERSE MORTGAGE MARKET. 2622 01:21:05,001 --> 01:21:06,000 AN OCTOBER REPORT BY THE 2623 01:21:06,001 --> 01:21:08,000 NATIONAL CONSUMER LAW CENTER 2624 01:21:08,001 --> 01:21:09,000 FOUND MANY OF THE ABUSIVE 2625 01:21:09,001 --> 01:21:10,000 PRACTICE THAT IS WERE COMMON IN 2626 01:21:10,001 --> 01:21:12,000 THE SUBPRIME LENDING MARKET 2627 01:21:12,001 --> 01:21:15,000 BEFORE ITS COLLAPSE ARE ALSO 2628 01:21:15,001 --> 01:21:16,000 TRANSACTIONS. 2629 01:21:16,001 --> 01:21:17,000 THOSE PRACTICES INCLUDE HIGH 2630 01:21:17,001 --> 01:21:20,000 FEES, INCENTIVES FOR BROKERS 2631 01:21:20,001 --> 01:21:21,000 THAT ARE HARMFUL TO BORROWERS, 2632 01:21:21,001 --> 01:21:24,000 AND LENDERS STEERING CONSUMERS 2633 01:21:24,001 --> 01:21:25,000 TO 2634 01:21:25,001 --> 01:21:27,000 ARE NECESSARY. 2635 01:21:27,001 --> 01:21:28,000 ALSO, SECURITIZATION AS IN THE 2636 01:21:28,001 --> 01:21:30,000 SUBPRIME MARKET IS BECOMING 2637 01:21:30,001 --> 01:21:31,000 MORE COMMON FOR REVERSE 2638 01:21:31,001 --> 01:21:32,000 MORTGAGES. 2639 01:21:32,001 --> 01:21:34,000 UNFORTUNATELY, THE COMPLEXITY 2640 01:21:34,001 --> 01:21:36,000 OF THE LOANS AND THE AGE OF THE 2641 01:21:36,001 --> 01:21:38,000 TYPICAL BORROWER HAVE MADE THE 2642 01:21:38,001 --> 01:21:39,000 REVERSE MORTGAGE MARKET RIPE 2643 01:21:39,001 --> 01:21:40,000 FOR SCAM ARTISTS. 2644 01:21:40,001 --> 01:21:42,000 WE HAVE TO MAKE SURE THAT 2645 01:21:42,001 --> 01:21:44,000 SENIORS WHO USE REVERSE 2646 01:21:44,001 --> 01:21:47,000 MORTGAGES ARE PROTECTED AGAINST 2647 01:21:47,001 --> 01:21:48,000 UNLAWFUL AND UNFAIR PRACTICES. 2648 01:21:48,001 --> 01:21:50,000 THE AMENDMENT I AM OFFERING 2649 01:21:50,001 --> 01:21:53,000 SEEKS TO CORRECT AN OVERSIGHT 2650 01:21:53,001 --> 01:21:56,000 IN THE CFPA PROVISIONS OF THE BILL. 2651 01:21:56,001 --> 01:21:57,000 THE BILL AS WRITTEN GIVES THE 2652 01:21:57,001 --> 01:21:59,000 CFPA AUTHORITY OVER A NUMBER OF 2653 01:21:59,001 --> 01:22:00,000 CONSUMER THOUGHTS BUT A 2654 01:22:00,001 --> 01:22:03,000 MAJORITY OF REVERSE MORTGAGES 2655 01:22:03,001 --> 01:22:04,000 TODAY ARE F.H.A. INSURED HOME 2656 01:22:04,001 --> 01:22:06,000 EQUITY CONVERSION MORTGAGES 2657 01:22:06,001 --> 01:22:07,000 WHICH ARE PRIMARILY REGULAR 2658 01:22:07,001 --> 01:22:09,000 LIGHTED BY H.U.D. UNDER THE 2659 01:22:09,001 --> 01:22:11,000 NATIONAL HOUSING ACT STATUTE. 2660 01:22:11,001 --> 01:22:12,000 THEREFORE AS CURRENTLY WRITTEN, 2661 01:22:12,001 --> 01:22:15,000 REVERSE MORTGAGES MAY NOT 2662 01:22:15,001 --> 01:22:16,000 CLEARLY FALL WITHIN THE CFPA'S AUTHORITY. 2663 01:22:16,001 --> 01:22:19,000 MY AMENDMENT WOULD CLARIFY THAT 2664 01:22:19,001 --> 01:22:20,000 THE CFPA DIRECTOR HAS OVERSIGHT 2665 01:22:20,001 --> 01:22:22,000 AND REGULATORY AUTHORITY OVE 2666 01:22:22,001 --> 01:22:23,000 LENDERS AND BROKERS THAT ISSUE 2667 01:22:23,001 --> 01:22:25,000 REVERSE MORTGAGES AND DIRECTS 2668 01:22:25,001 --> 01:22:27,000 THE AGENCY TO CONSULT WITH 2669 01:22:27,001 --> 01:22:30,000 H.U.D. AS IT D REGULATIONS. 2670 01:22:30,001 --> 01:22:32,000 MY AMENDMENT WOULD ALSO REQUIRE 2671 01:22:32,001 --> 01:22:33,000 CFPA TO BEGIN A RULE MAKING 2672 01:22:33,001 --> 01:22:35,000 WITHIN ONE YEAR OF THE 2673 01:22:35,001 --> 01:22:36,000 ENACTMENT IN ORDER TO DEVELOP 2674 01:22:36,001 --> 01:22:37,000 REGULATIONS THAT WILL MAKE SURE 2675 01:22:37,001 --> 01:22:40,000 REVERSE MORTGAGE TRANSACTIONS 2676 01:22:40,001 --> 01:22:42,000 ARE NOT UNFAIR, DECEPTIVE, OR ABUSIVE. 2677 01:22:42,001 --> 01:22:43,000 I URGE MY COLLEAGUES TO SUPPORT 2678 01:22:43,001 --> 01:22:46,000 THIS AMENDMENT AND I RESERVE 2679 01:22:46,001 --> 01:22:47,000 THE BALANCE OF MY TIME. 2680 01:22:47,001 --> 01:22:48,000 THE SPEAKER PRO TEMPORE: THE 2681 01:22:48,001 --> 01:22:49,000 GENTLEWOMAN RESERVES. 2682 01:22:49,001 --> 01:22:50,000 THE GENTLEMAN FROM NEW JERS 2683 01:22:50,001 --> 01:22:51,000 FOR WHAT PURPOSE DO YOU SEEK 2684 01:22:51,001 --> 01:22:52,000 RECOGNITION? 2685 01:22:52,001 --> 01:22:53,000 MR. GARRETT: TO CLAIM TIME IN 2686 01:22:53,001 --> 01:22:54,000 OPPOSITION. THE CHAIR: THE GENTLEMAN IS 2687 01:22:54,001 --> 01:22:55,000 RECOGNIZED FOR FIVE MINUTES. 2688 01:22:55,001 --> 01:22:56,000 MR. GARRETT: I YIELD MYSELF 2689 01:22:56,001 --> 01:22:57,000 THREE MINUTES. 2690 01:22:57,001 --> 01:22:58,000 THE CHAIR: THE GENTLEMAN IS 2691 01:22:58,001 --> 01:23:00,000 RECOGNIZED FOR THREE MINUTES. 2692 01:23:00,001 --> 01:23:01,000 MR. GARRETT: I THANK THE MADAM 2693 01:23:01,001 --> 01:23:03,000 CHAI 2694 01:23:03,001 --> 01:23:05,000 HERE'S AN EXAMPLE OF THE OLD 2695 01:23:05,001 --> 01:23:08,000 SAYING, HERE WE GO AGAIN. 2696 01:23:08,001 --> 01:23:09,000 THE CFP AMPLET, AN ENTITY -- 2697 01:23:09,001 --> 01:23:11,000 CFPA, AN ENTITY THAT WE HAVE 2698 01:23:11,001 --> 01:23:15,000 ALREADY DISCUSSED BOTH TODAY 2699 01:23:15,001 --> 01:23:16,000 AND YESTERDAY IS AN IDEA OF 2700 01:23:16,001 --> 01:23:17,000 CONTRACTING CONSUMER CHOICE, 2701 01:23:17,001 --> 01:23:18,000 PUTTING LIMITATIONS ON THE 2702 01:23:18,001 --> 01:23:21,000 CONSUMER'S ABILITY TO BUY 2703 01:23:21,001 --> 01:23:22,000 PRODUCTS THEY NEED AND WANT, 2704 01:23:22,001 --> 01:23:25,000 AND ALL AT THE SAME TIME 2705 01:23:25,001 --> 01:23:27,000 CAUSING A COST TO THE OVERALL 2706 01:23:27,001 --> 01:23:28,000 SYSTEM OF CREDIT AND JOBS IN 2707 01:23:28,001 --> 01:23:31,000 THIS COUNTRY. 2708 01:23:31,001 --> 01:23:33,000 THE ADDITIONAL COST TO THE CFPA 2709 01:23:33,001 --> 01:23:36,000 HAS ALREADY BEEN EXAMINED BY 2710 01:23:36,001 --> 01:23:37,000 OUTSID ORGANIZATIONS AND IS 2711 01:23:37,001 --> 01:23:40,000 SEEN TO HAVE A NEGATIVE 2712 01:23:40,001 --> 01:23:41,000 FOR THIS COUNTRY TO GROW 2713 01:23:41,001 --> 01:23:43,000 OURSELVES OUT OF THE ECONOMIC 2714 01:23:43,001 --> 01:23:45,000 MORASS THAT WE FIND OURSELVES 2715 01:23:45,001 --> 01:23:47,000 IN TODAY. 2716 01:23:47,001 --> 01:23:48,000 EXPERTS HAVE SAID, A 2717 01:23:48,001 --> 01:23:49,000 YET TO HEAR ANYONE FROM THE 2718 01:23:49,001 --> 01:23:51,000 OTHER SIDE OF THE AISLE REFUTE 2719 01:23:51,001 --> 01:23:53,000 THESE STUDIES, NOR FOR THAT 2720 01:23:53,001 --> 01:23:55,000 MATTER WHEN WE ASKED THE OTHER 2721 01:23:55,001 --> 01:23:57,000 SIDE OF THE AISLE EARLIER, THE GENTLEMAN FROM NORTH CAROLINA, 2722 01:23:57,001 --> 01:23:58,000 I BELIEVE, DO THEY HAVE ANY 2723 01:23:58,001 --> 01:23:59,000 STUDIES TO REFUTE THESE OR 2724 01:23:59,001 --> 01:24:01,000 PRESENT THE CASE THAT ACTUALLY 2725 01:24:01,001 --> 01:24:03,000 WOULD GO IN THE OPPOSITION 2726 01:24:03,001 --> 01:24:05,000 DIRECTION, THEY SAID NO, OR HAD 2727 01:24:05,001 --> 01:24:07,000 NO ANSWER, EXPERTS HAVE SHOWN 2728 01:24:07,001 --> 01:24:09,000 THAT T CFPA ALONE WOULD ADD A 2729 01:24:09,001 --> 01:24:13,000 COST OF CREDIT TO THE SYSTEM 2730 01:24:13,001 --> 01:24:14,000 BETWEEN 1.4 TO 1.4, ABOUT 1 1/2 2731 01:24:14,001 --> 01:24:15,000 PERCENTAGE POINTS TO THE COST 2732 01:24:15,001 --> 01:24:16,000 OF CREDIT IN THIS COUNTRY. 2733 01:24:16,001 --> 01:24:18,000 WHAT DOES THAT MEAN? 2734 01:24:18,001 --> 01:24:19,000 EVEN IN THE CASE OF REVERSE 2735 01:24:19,001 --> 01:24:21,000 MORTGAGES I GUESS IT WOULD 2736 01:24:21,001 --> 01:24:22,000 APPLY THAT YOU WOULD SAY THE 2737 01:24:22,001 --> 01:24:26,000 COST OF YOUR CREDIT IF YOU HAVE 2738 01:24:26,001 --> 01:24:27,000 A 6% LOAN WOULD GO UP TO AROUND 2739 01:24:27,001 --> 01:24:29,000 7%, 7.5%. 2740 01:24:29,001 --> 01:24:31,000 JUST THE ACT OF BORROWING WILL 2741 01:24:31,001 --> 01:24:32,000 BE MADE HARDER BECAUSE OF E 2742 01:24:32,001 --> 01:24:33,000 UNDERLYING BILL. 2743 01:24:33,001 --> 01:24:37,000 NOW WE SEE HERE WITH THIS 2744 01:24:37,001 --> 01:24:39,000 AMENDMENT THAT THE CFPA 2745 01:24:39,001 --> 01:24:40,000 OMNIPOTENT ENOUGH WITH THEIR 2746 01:24:40,001 --> 01:24:41,000 POWER TO REACH INTO BASICALLY 2747 01:24:41,001 --> 01:24:42,000 EVERY SINGLE CORNER OF THE 2748 01:24:42,001 --> 01:24:44,000 ECONOMY OF THIS CO 2749 01:24:44,001 --> 01:24:46,000 ARE GOING TO LET THEM GO EVEN A 2750 01:24:46,001 --> 01:24:48,000 LITTLE BIFURTHER. 2751 01:24:48,001 --> 01:24:49,000 I SAY ALL THAT WITH THE 2752 01:24:49,001 --> 01:24:50,000 UNDERSTACK THAT REVERSE 2753 01:24:50,001 --> 01:24:51,000 MORTGAGES SOMETIMES IN THE PAST 2754 01:24:51,001 --> 01:24:53,000 --NDERSTANDING THAT REVERSE 2755 01:24:53,001 --> 01:24:55,000 MORTGAGES SOMETIMES IN THE PAST 2756 01:24:55,001 --> 01:24:57,000 WITHIN CERTAIN CASES OF CAUSING 2757 01:24:57,001 --> 01:24:58,000 PROBLEMS FOR OUR SENIORS AND 2758 01:24:58,001 --> 01:25:00,000 THAT IS CERTAINLY SOMETH 2759 01:25:00,001 --> 01:25:01,000 THAT REGULATORS NEED TO AND 2760 01:25:01,001 --> 01:25:02,000 HAVE THE ABILITY TO TAKE A LOOK 2761 01:25:02,001 --> 01:25:04,000 AT. 2762 01:25:04,001 --> 01:25:07,000 ANSWER. 2763 01:25:07,001 --> 01:25:09,000 THIS -- WAS CRAFTED IN SUCH A 2764 01:25:09,001 --> 01:25:11,000 WAY THAT WOULD BROADEN THE CFPA 2765 01:25:11,001 --> 01:25:13,000 POWERS, HURT CREDIT, AND ONE 2766 01:25:13,001 --> 01:25:14,000 OTHER POINT ON THIS AS WELL, 2767 01:25:14,001 --> 01:25:16,000 WHEN YOU ARE HURTING THE CREDIT 2768 01:25:16,001 --> 01:25:17,000 MARKETS OF THIS COUNTRY, YOU 2769 01:25:17,001 --> 01:25:18,000 ARE ALSO HURTING THE 2770 01:25:18,001 --> 01:25:19,000 OPPORTUNITY TO GROW THIS 2771 01:25:19,001 --> 01:25:21,000 ECONOMY WITH REGARD TO JOBS. 2772 01:25:21,001 --> 01:25:24,000 I THINK THAT SAME STUDY AS WEL 2773 01:25:24,001 --> 01:25:26,000 GAVE US A NUMBER OF AROUND 4.3% 2774 01:25:26,001 --> 01:25:28,000 REDUCTION IN THE INCREASE OF JOBS. 2775 01:25:28,001 --> 01:25:30,000 WHAT DOES THAT MEAN TO YOU AND ME? 2776 01:25:30,001 --> 01:25:33,000 WITH UNEMPLOYMENT AROUND 10%, 2777 01:25:33,001 --> 01:25:34,000 THAT MEANS WE COULD LOOK AT AN 2778 01:25:34,001 --> 01:25:36,000 ADDITIONAL MILLION PEOPLE IN 2779 01:25:36,001 --> 01:25:37,000 COUNTRY WHO WOULD NOT BE ABLE 2780 01:25:37,001 --> 01:25:39,000 TO GET JOBS. 2781 01:25:39,001 --> 01:25:40,000 HOW DOES THAT HELP SENIORS? 2782 01:25:40,001 --> 01:25:41,000 SENIORS HAVE OTHER PEOPLE IN 2783 01:25:41,001 --> 01:25:43,000 THEIR FAMILIES WORKING, HOW 2784 01:25:43,001 --> 01:25:44,000 DOES IT HELP ANY SENIOR, HELP 2785 01:25:44,001 --> 01:25:46,000 ANYONE THIS COUNTRY IF WE ARE 2786 01:25:46,001 --> 01:25:47,000 GOING TO PUT MORE IMPEDIMENTS 2787 01:25:47,001 --> 01:25:49,000 AND ROADBLOCKS IN THE WAY TO 2788 01:25:49,001 --> 01:25:51,000 THIS COUNTRY GROWING AGAIN, 2789 01:25:51,001 --> 01:25:52,000 GETTING CREDIT DOWN AGAIN, AND 2790 01:25:52,001 --> 01:25:54,000 GETTING UNEMPLOYMENT BACK DOWN 2791 01:25:54,001 --> 01:25:55,000 FROM THE 10% THAT WE FIND 2792 01:25:55,001 --> 01:25:57,000 OURSELVES IN TODAY? 2793 01:25:57,001 --> 01:25:58,000 I STAND OPPOSED TO THIS 2794 01:25:58,001 --> 01:26:00,000 AMENDMENT AND OPPOSED TO 2795 01:26:00,001 --> 01:26:02,000 PUTTING ADDITIONAL POWERS IN 2796 01:26:02,001 --> 01:26:03,000 THE FEDERAL GOVERNMENT AND THE 2797 01:26:03,001 --> 01:26:04,000 CFPA AND WITHIN THE AUTHORITIES 2798 01:26:04,001 --> 01:26:05,000 THEY HAVE ALREADY. 2799 01:26:05,001 --> 01:26:06,000 I RESERVE THE BALANCE OF MY 2800 01:26:06,001 --> 01:26:08,000 TIME. 2801 01:26:08,001 --> 01:26:10,000 THE CHAIR: THE GENTLEMAN 2802 01:26:10,001 --> 01:26:11,000 THE GENTLEWOMAN FROM ILLINOIS IS RECOGNIZED. 2803 01:26:11,001 --> 01:26:13,000 MS. SCHAKOWSKY: MAY I INQUIRE 2804 01:26:13,001 --> 01:26:14,000 HOW MANY MINUTES I HAVE LEFT? 2805 01:26:14,001 --> 01:26:17,000 THE CHAIR: THE GENTLEWOMAN HAS 2806 01:26:17,001 --> 01:26:18,000 2 1/2 MINUTES 2807 01:26:18,001 --> 01:26:19,000 MS. SCHAKOWSKY: I WOULD LIKE TO 2808 01:26:19,001 --> 01:26:22,000 YIELD A MINUTE TO THE CHAIRMAN 2809 01:26:22,001 --> 01:26:23,000 OF THE COMMITTEE, BARNEY FRANK. THE CHAIR: THE GENTLEMAN FROM 2810 01:26:23,001 --> 01:26:25,000 MASSACHUSETTS IS RECOGNIZED FOR 2811 01:26:25,001 --> 01:26:26,000 ONE MINUTE. 2812 01:26:26,001 --> 01:26:28,000 MR. FRANK: MADAM CHAIR, WE KEEP 2813 01:26:28,001 --> 01:26:31,000 HEARING ABOUT THESE STUDIES. 2814 01:26:31,001 --> 01:26:32,000 THEY WERE COMMISSIONED BY 2815 01:26:32,001 --> 01:26:35,000 ORGANIZATIONS IDEOLOGICALLY 2816 01:26:35,001 --> 01:26:36,000 OPPOSED TO THIS AND 2817 01:26:36,001 --> 01:26:37,000 SURPRISE THEY HAVE GOTTEN BACK 2818 01:26:37,001 --> 01:26:38,000 THE ANSWERS THEY WANT. 2819 01:26:38,001 --> 01:26:40,000 I HAVEN'T SEEN THEM. 2820 01:26:40,001 --> 01:26:42,000 THEY ARE NOT WORTH ANYTHING. 2821 01:26:42,001 --> 01:26:43,000 THEY ARE SIMPLY QUANTIFICATIONS 2822 01:26:43,001 --> 01:26:45,000 OF IDEOLOGY WHICH ARE ENTITLED 2823 01:26:45,001 --> 01:26:46,000 TO NO WEIGHT. 2824 01:26:46,001 --> 01:26:49,000 I UNDERSTAND THAT THERE ARE 2825 01:26:49,001 --> 01:26:50,000 PEOPLE W DO NOT LIKE CONSUMER 2826 01:26:50,001 --> 01:26:52,000 REGULATION. 2827 01:26:52,001 --> 01:26:55,000 WHAT WE LEARN IS THAT IN ITS 2828 01:26:55,001 --> 01:26:57,000 ABSENCE ABUSES CAN PROLIFERATE 2829 01:26:57,001 --> 01:26:59,000 THAT BECOME SYSTEMIC PROBLEMS. 2830 01:26:59,001 --> 01:27:00,000 IT'S ESPECIALLY RELEVANT WHEN 2831 01:27:00,001 --> 01:27:02,000 WE ARE DEALING WITH THE ELDERLY. 2832 01:27:02,001 --> 01:27:04,000 WE KNOW THERE ARE PEOPLE WHO 2833 01:27:04,001 --> 01:27:05,000 ARE PREYIN 2834 01:27:05,001 --> 01:27:10,000 THERE ARE PEOPLE ELIGIBLE FOR 2835 01:27:10,001 --> 01:27:12,000 THIS PROGRAM IN THEIR 80'S WHO 2836 01:27:12,001 --> 01:27:15,000 HAVE LIVES EVER HARD WORK THAT 2837 01:27:15,001 --> 01:27:17,000 DID NOT INCLUDE SOPHISTICATED 2838 01:27:17,001 --> 01:27:18,000 INVOLVEMENT WITH FINANCIAL 2839 01:27:18,001 --> 01:27:19,000 INSTRUMENTS. 2840 01:27:19,001 --> 01:27:20,000 THERE HAVE BEEN PROBLEMS OF 2841 01:27:20,001 --> 01:27:22,000 ABUSE. 2842 01:27:22,001 --> 01:27:24,000 WE IN FACT ADOPTED I THINK 2843 01:27:24,001 --> 01:27:25,000 WITHOUT OPPOSITION A PIECE OF 2844 01:27:25,001 --> 01:27:27,000 LEGISLATION THAT SAID, CAN YOU 2845 01:27:27,001 --> 01:27:28,000 NOT BE THE ONE THAT SELLS 2846 01:27:28,001 --> 01:27:30,000 SOMEBODY REVERSE MORTGAGE AND 2847 01:27:30,001 --> 01:27:31,000 THEN BECOMES HIS OR HER 2848 01:27:31,001 --> 01:27:32,000 INVESTMENT ADVISOR BECAUSE OF 2849 01:27:32,001 --> 01:27:35,000 THE ABUSES. 2850 01:27:35,001 --> 01:27:36,000 PROTECTING THE ELDERLY AGAINST 2851 01:27:36,001 --> 01:27:37,000 ABUSE SHOULDN'T BE CONTROVERSIAL. 2852 01:27:37,001 --> 01:27:38,000 THE CHAIR: THE GENTLEMAN'S TIME 2853 01:27:38,001 --> 01:27:39,000 HAS EXPIRED. THE GENTLEMAN FROM NEW JERSEY 2854 01:27:39,001 --> 01:27:43,000 IS RECOGNIZED. 2855 01:27:43,001 --> 01:27:46,000 MR. GARRETT: DOES THE 2856 01:27:46,001 --> 01:27:47,000 GENTLELADY HAVE OTHER -- I'LL RESERVE. 2857 01:27:47,001 --> 01:27:48,000 THE CHAIR: THE GENTLEMAN 2858 01:27:48,001 --> 01:27:50,000 RESERVES. THE GENTLEWOMAN FROM ILLINOIS 2859 01:27:50,001 --> 01:27:51,000 IS RECOGNIZED. 2860 01:27:51,001 --> 01:27:55,000 MADAM CHAIRMAN. 2861 01:27:55,001 --> 01:27:57,000 I YIELD NOW TO THE GENTLELADY 2862 01:27:57,001 --> 01:27:58,000 TO FINISH THE AMOUNT OF 2863 01:27:58,001 --> 01:28:01,000 REMAING TIME. 2864 01:28:01,001 --> 01:28:02,000 THE CHAIR: 2865 01:28:02,001 --> 01:28:03,000 NEVADA IS RECOGNIZED FOR THE 2866 01:28:03,001 --> 01:28:05,000 REMAING MINUTE AND A HALF. 2867 01:28:05,001 --> 01:28:06,000 MS. TITUS: THANK YOU, MADAM 2868 01:28:06,001 --> 01:28:08,000 CHAIRMAN. 2869 01:28:08,001 --> 01:28:09,000 EVERY DAY SENIORS ARE TARGETED 2870 01:28:09,001 --> 01:28:11,000 BY LENDING AGENCIES THRGH 2871 01:28:11,001 --> 01:28:12,000 MAILINGS, PHONE CALLS, AND TV 2872 01:28:12,001 --> 01:28:15,000 ADS OFFERING REVERSE MORTGAGES 2873 01:28:15,001 --> 01:28:16,000 WITH PROMISES OF FREE MONEY TO 2874 01:28:16,001 --> 01:28:18,000 FINAE TRIPS, NEW CARS, AND 2875 01:28:18,001 --> 01:28:20,000 GIFTS IN THEIR GOLDEN YEARS. 2876 01:28:20,001 --> 01:28:21,000 WHILE A REVERSE MORTGAGE MAY BE 2877 01:28:21,001 --> 01:28:23,000 AN APPROPRIATE PRODUCT FOR SOME 2878 01:28:23,001 --> 01:28:24,000 SENIORS, IT'S A COMPLEX 2879 01:28:24,001 --> 01:28:26,000 FINANCIAL INSTRUMENT WHICH IS 2880 01:28:26,001 --> 01:28:29,000 BEING AGGRESSIVELY MARKETED TO 2881 01:28:29,001 --> 01:28:31,000 OUR MOST VULNERABLE IN SOCIETY. 2882 01:28:31,001 --> 01:28:32,000 ACCORDINGLY, MANY SENIORS TODAY 2883 01:28:32,001 --> 01:28:35,000 FIND THEMSELVES IN FINANCIAL 2884 01:28:35,001 --> 01:28:37,000 HARDSHIP DUE TO UNFAIR AND 2885 01:28:37,001 --> 01:28:38,000 UNCLEAR AGREEMENTS ALONG WITH 2886 01:28:38,001 --> 01:28:40,000 EXCESSIVE FEES THAT COMES A 2887 01:28:40,001 --> 01:28:42,000 RESULT OF REVERSE MORTGAGES. 2888 01:28:42,001 --> 01:28:43,000 THEY HAVE LEARNED THE HARD WAY 2889 01:28:43,001 --> 01:28:46,000 THAT THE REALITY OF A REVERSE 2890 01:28:46,001 --> 01:28:48,000 MORTGAGE IS NOT ALWAYS AS 2891 01:28:48,001 --> 01:28:49,000 ADVERTISED AND NOW THEY FACE 2892 01:28:49,001 --> 01:28:50,000 SEVERE FINANCIAL CONSEQUENCES 2893 01:28:50,001 --> 01:28:51,000 IN WHAT IS SUPPOSED TO BE THEIR 2894 01:28:51,001 --> 01:28:52,000 GOLDEN YEARS. 2895 01:28:52,001 --> 01:28:54,000 THE AMENDMENT THAT WE ARE 2896 01:28:54,001 --> 01:28:58,000 OFFERING TODAY PROVIDES NEEDED 2897 01:28:58,001 --> 01:28:59,000 SENIORS BY REQUIRING THAT THE 2898 01:28:59,001 --> 01:29:02,000 NEW CONSUMER FINANCIAL 2899 01:29:02,001 --> 01:29:03,000 PROTECTION AGENCY OVERSEE THE 2900 01:29:03,001 --> 01:29:04,000 REVERSE MORTGAGE INDUSTRY TO 2901 01:29:04,001 --> 01:29:07,000 ENSURE SENIORS ARE T EXPOSED 2902 01:29:07,001 --> 01:29:09,000 TO UNFAIR AND DECEPTIVE PRACTICES. 2903 01:29:09,001 --> 01:29:11,000 PROTECTING OUR SENIORS FROM 2904 01:29:11,001 --> 01:29:13,000 UNFAIR AND UNCLEAR FINANCIAL 2905 01:29:13,001 --> 01:29:15,000 PRODUCTS IS LONG OVERDUE. 2906 01:29:15,001 --> 01:29:16,000 REVERSE MORTGAGES NEED TO BE 2907 01:29:16,001 --> 01:29:18,000 CLEARLY AND CLOSELY MONITORED 2908 01:29:18,001 --> 01:29:20,000 AND REGULATED IN AN EFFORT TO 2909 01:29:20,001 --> 01:29:21,000 ENSURE SENIORS DON'T LOSE THEIR 2910 01:29:21,001 --> 01:29:23,000 HOME AND EQUITY THAT THEY HAVE 2911 01:29:23,001 --> 01:29:24,000 BUILT UP THROUGH A LIFETIME OF 2912 01:29:24,001 --> 01:29:25,000 HARD WORK. 2913 01:29:25,001 --> 01:29:26,000 I'M CONFIDENT THAT THE 2914 01:29:26,001 --> 01:29:29,000 AMENDMENT WHICH HAS THE 2915 01:29:29,001 --> 01:29:31,000 ENDORSEMENT OF 2916 01:29:31,001 --> 01:29:32,000 APPROPRIATE FLEXIBILITY AND 2917 01:29:32,001 --> 01:29:37,000 PROTECTIONS FOR OUR SENIORS. 2918 01:29:37,001 --> 01:29:38,000 I WANT TO THANK MY 2919 01:29:38,001 --> 01:29:39,000 REPRESENTATIVES SCHAKOWSKY AND ALSO THE CHAIRMAN OF THE 2920 01:29:39,001 --> 01:29:41,000 COMMITTEE FOR WORKING WITH ME 2921 01:29:41,001 --> 01:29:44,000 ON THIS IMPORTANT 2922 01:29:44,001 --> 01:29:45,000 I URGE MY COLLEAGUES TO SUPPORT 2923 01:29:45,001 --> 01:29:46,000 THE AMENDMENT. 2924 01:29:46,001 --> 01:29:47,000 THE CHAIR: TIME HAS EXPIRED. 2925 01:29:47,001 --> 01:29:48,000 THE GENTLEMAN FROM NEW JERSEY 2926 01:29:48,001 --> 01:29:50,000 IS RECOGNIZED. MR. GARRETT: DOES THE 2927 01:29:50,001 --> 01:29:51,000 GENTLELADY HAVE ANY OTHER 2928 01:29:51,001 --> 01:29:55,000 SPEAKERS? 2929 01:29:55,001 --> 01:29:56,000 THE CHAIR: THE GENTLEWOMAN'S -- 2930 01:29:56,001 --> 01:29:58,000 THE GENTLEWOMAN ILLINOIS 2931 01:29:58,001 --> 01:29:59,000 DOESN'T HAVE TIME 2932 01:29:59,001 --> 01:30:01,000 THE GENTLEMAN FROM NEW JERSEY IS RECOGNIZED. 2933 01:30:01,001 --> 01:30:04,000 MR. GARRETT: I THANK YOU. 2934 01:30:04,001 --> 01:30:05,000 I YIELD MYSELF 20 SECONDS AND 2935 01:30:05,001 --> 01:30:06,000 YIELD TO THE GENTLEMAN FROM 2936 01:30:06,001 --> 01:30:07,000 TEXAS MY REMAINING TIME. E CHAIR: THE GENTLEMAN IS 2937 01:30:07,001 --> 01:30:10,000 RECOGNIZED FOR 20 SECONDS. 2938 01:30:10,001 --> 01:30:12,000 MR. GARRETT: TO 2939 01:30:12,001 --> 01:30:14,000 COMMENT WITH REGARD TO OUR 2940 01:30:14,001 --> 01:30:16,000 STUDY WHICH HE SAID IS SIMPLY A 2941 01:30:16,001 --> 01:30:18,000 QUANTIFICATION OF IDEOLOGY, 2942 01:30:18,001 --> 01:30:20,000 WHENEVER HE HAS AN ISSUE LIKE 2943 01:30:20,001 --> 01:30:21,000 THAT, I THINK THAT IS AN 2944 01:30:21,001 --> 01:30:24,000 ABANDONMENT OF ORIGINALITY 2945 01:30:24,001 --> 01:30:25,000 BECAUSE OF ANY TIME WE HAVE A 2946 01:30:25,001 --> 01:30:27,000 STUDY OR WHAT HAVE YOU, HE 2947 01:30:27,001 --> 01:30:29,000 REFERS BACK TO IDEOLOGY. 2948 01:30:29,001 --> 01:30:30,000 WE WOULD ALWAYS ASK THE OTHER 2949 01:30:30,001 --> 01:30:32,000 SIDE OF THE AISLE, IDEOLOGICAL 2950 01:30:32,001 --> 01:30:33,000 OR OTHERWISE, WE WOULD BE HAPPY 2951 01:30:33,001 --> 01:30:34,000 TO SEE ANY STUDY TO SUPP 2952 01:30:34,001 --> 01:30:36,000 ANYTHING THAT'S IN THIS BILL 2953 01:30:36,001 --> 01:30:37,000 THAT WILL NOT HARM OUR ECONOMY 2954 01:30:37,001 --> 01:30:40,000 NOR CREATE HARDSHIPS FOR THE 2955 01:30:40,001 --> 01:30:42,000 CREATION OF JOBS OR CREATE 2956 01:30:42,001 --> 01:30:46,000 HARDSHIPS FOR CREATING INCREASES TO CREDIT. 2957 01:30:46,001 --> 01:30:47,000 WE WOULD LIKE IDEA LONLICAL OR 2958 01:30:47,001 --> 01:30:48,000 THE CHAIR: THE GENTLEMAN'S TIME HAS EXPIRED. 2959 01:30:48,001 --> 01:30:49,000 MR. GARRETT: I YIELD THE 2960 01:30:49,001 --> 01:30:52,000 REMAINLING TIME TO CLOSE TO THE 2961 01:30:52,001 --> 01:30:54,000 GENTLEMAN FROM TEXAS, A MAN NOT 2962 01:30:54,001 --> 01:30:55,000 OF IDEOLOGY ALONE BUT A MAN OF 2963 01:30:55,001 --> 01:30:56,000 FACT 2964 01:30:56,001 --> 01:30:58,000 RIGHT SIDE OF THIS ISSUE, THE 2965 01:30:58,001 --> 01:30:59,000 GENTLEMAN FROM TEXAS 2966 01:30:59,001 --> 01:31:00,000 THE CHAIR: THE GENTL TEXAS IS RECOGNIZED FOR A 2967 01:31:00,001 --> 01:31:09,000 MINUTE AND A HALF. 2968 01:31:09,001 --> 01:31:11,000 . 2969 01:31:11,001 --> 01:31:13,000 MR. HENSARLING: SIMPLY BECAUSE 2970 01:31:13,001 --> 01:31:14,000 YOU ARE A SENIOR YOU SHOULDN'T 2971 01:31:14,001 --> 01:31:16,000 HAVE TO GIVE UP YOUR FREEDOM. 2972 01:31:16,001 --> 01:31:17,000 YOU SHOULDN'T HAVE TO GIVE U 2973 01:31:17,001 --> 01:31:19,000 YOUR ECONOMIC LIBERTY. 2974 01:31:19,001 --> 01:31:22,000 THERE ARE SO MANY REASONS TO 2975 01:31:22,001 --> 01:31:24,000 OPPOSE THE UNDERLYING LEGISLATION. 2976 01:31:24,001 --> 01:31:27,000 IT CREATES A PERMANENT WALL 2977 01:31:27,001 --> 01:31:32,000 STREET BAILOUT AUTHORITY. 2978 01:31:32,001 --> 01:31:33,000 AT A TIME WHEN THE ECONOMIC 2979 01:31:33,001 --> 01:31:36,000 POLICIES OF THIS CONGRESS, OF 2980 01:31:36,001 --> 01:31:38,000 THIS ADMINISTRATION HAVE PRODUCED THE HIGHEST 2981 01:31:38,001 --> 01:31:41,000 UNEMPLOYMENT RATE IN A 2982 01:31:41,001 --> 01:31:42,000 GENERATION, THEY PROPOSE 2983 01:31:42,001 --> 01:31:43,000 LEGISLATION THAT WILL MAKE 2984 01:31:43,001 --> 01:31:45,000 CREDIT MORE EXPENSIVE, LESS 2985 01:31:45,001 --> 01:31:48,000 AVAILABLE AND CRUSH JOBS. 2986 01:31:48,001 --> 01:31:51,000 BUT NOW WE HAVE AN AMENDMENT 2987 01:31:51,001 --> 01:31:55,000 THAT GOES TO INCREASE THE POWER 2988 01:31:55,001 --> 01:31:57,000 OF THE UNELECTED CZAR TO BAN, 2989 01:31:57,001 --> 01:32:01,000 TO BAN AND RATION CREDIT. 2990 01:32:01,001 --> 01:32:02,000 YOU KNOW, ULTIMATELY, AMERICAN 2991 01:32:02,001 --> 01:32:05,000 PEOPLE IN THE LAND OF THE FREE 2992 01:32:05,001 --> 01:32:06,000 OUGHT TO BE ABLE TBE FREE TO 2993 01:32:06,001 --> 01:32:08,000 CHOOSE THE FINANCIAL PRODUCTS 2994 01:32:08,001 --> 01:32:10,000 THAT THEY THINK THAT ARE BEST 2995 01:32:10,001 --> 01:32:13,000 FOR THEM. 2996 01:32:13,001 --> 01:32:15,000 THE WAY TO BEST PROTECT 2997 01:32:15,001 --> 01:32:18,000 AMERICAN CITIZENS IS WITH 2998 01:32:18,001 --> 01:32:23,000 COMPETIVE MARKETS THAT ARE 2999 01:32:23,001 --> 01:32:25,000 VIGOROUSLY ENFORCED FOR FRAUD 3000 01:32:25,001 --> 01:32:27,000 BUT NOT TAKE AWAY THEIR 3001 01:32:27,001 --> 01:32:29,000 ESSENTIAL FREEDOM. 3002 01:32:29,001 --> 01:32:31,000 QUIT PROTECTING A 3003 01:32:31,001 --> 01:32:32,000 THEMSELVES. 3004 01:32:32,001 --> 01:32:34,000 QUIT ASSAULTING THE ECONOMIC 3005 01:32:34,001 --> 01:32:35,000 LIBERTIES OF AMERICANS, 3006 01:32:35,001 --> 01:32:37,000 ESPECIALLY SENIORS, IN TOUGH 3007 01:32:37,001 --> 01:32:40,000 ECONOMIC TIMES WHO MAY NEED THE 3008 01:32:40,001 --> 01:32:42,000 MONEY TO SURVIVE. 3009 01:32:42,001 --> 01:32:44,000 WE SHOULD REJECT THIS 3010 01:32:44,001 --> 01:32:45,000 AMENDMENT, REJECT THE JOB LOSS, 3011 01:32:45,001 --> 01:32:48,000 REJECT THE BAILOUT, REJECT THE 3012 01:32:48,001 --> 01:32:49,000 ASSAULT ON LIBERTY. 3013 01:32:49,001 --> 01:32:50,000 THE CHAIR: THE GENTLEMAN'S TIME 3014 01:32:50,001 --> 01:32:51,000 HAS EXPIRED. 3015 01:32:51,001 --> 01:32:53,000 ALL TIME HAVING EXPIRED, THE 3016 01:32:53,001 --> 01:32:54,000 QUESTION IS ON THE AMENDMENT 3017 01:32:54,001 --> 01:32:55,000 OFFERED BY THE GENTLEWOMAN FROM 3018 01:32:55,001 --> 01:32:56,000 ILLINOIS. 3019 01:32:56,001 --> 01:32:58,000 THOSE IN FAVOR SAY AYE. 3020 01:32:58,001 --> 01:32:59,000 THOSE OPPOSED, NO. 3021 01:32:59,001 --> 01:33:00,000 IN THE OPINION OF THE CHAIR, 3022 01:33:00,001 --> 01:33:02,000 THE AYES HAVE IT. 3023 01:33:02,001 --> 01:33:04,000 THE AMENDMENT -- 3024 01:33:04,001 --> 01:33:05,000 MR. HENSARLING: MADAM CHAIR. 3025 01:33:05,001 --> 01:33:08,000 THE CHAIR: THE GENTLEMAN FROM 3026 01:33:08,001 --> 01:33:09,000 TEXAS. 3027 01:33:09,001 --> 01:33:10,000 RECORDED VOTE. 3028 01:33:10,001 --> 01:33:11,000 THE CHAIR: PURSUANT TO CLAUSE 6 3029 01:33:11,001 --> 01:33:13,000 OF RULE 18, FURTHER PROCEEDINGS 3030 01:33:13,001 --> 01:33:14,000 ON THE AMENDMENT OFFERED BY THE 3031 01:33:14,001 --> 01:33:15,000 GENTLEWOMAN FROM ILLINOIS WILL 3032 01:33:15,001 --> 01:33:17,000 BE POSTPONED. 3033 01:33:17,001 --> 01:33:19,000 IT IS NOW IN ORDER TO CONSIDER 3034 01:33:19,001 --> 01:33:22,000 AMENDMENT NUMBER 33 PRINTED IN 3035 01:33:22,001 --> 01:33:24,000 HOUSE REPORT 111-370. 3036 01:33:24,001 --> 01:33:28,000 FOR WHAT PURPOSE DOES THE 3037 01:33:28,001 --> 01:33:31,000 GENTLEWOMAN FROM OHIO RISE? 3038 01:33:31,001 --> 01:33:32,000 AN AMENDMENT AT THE DESK. 3039 01:33:32,001 --> 01:33:33,000 THE CHAIR: THE CLERK WILL 3040 01:33:33,001 --> 01:33:34,000 DESIGNATE THE AMENDMENT. 3041 01:33:34,001 --> 01:33:36,000 THE CLERK: AMENDMENT NUMBER 33 3042 01:33:36,001 --> 01:33:37,000 PRINTED IN HOUSE REPORT 111-370 3043 01:33:37,001 --> 01:33:39,000 -- 3044 01:33:39,001 --> 01:33:40,000 MS. KILROY: I ASK UNANIMOUS 3045 01:33:40,001 --> 01:33:41,000 CONSENT -- 3046 01:33:41,001 --> 01:33:47,000 THE CHAIR: PURSUANT TO HOUSE 3047 01:33:47,001 --> 01:33:48,000 FROM OHIO, MS. KILROY, AND A 3048 01:33:48,001 --> 01:33:50,000 MEMBER OPPOSED, EACH WILL 3049 01:33:50,001 --> 01:33:51,000 CONTROL FIVE MINUTES. 3050 01:33:51,001 --> 01:33:53,000 THE CHAIR RECOGNIZES THE 3051 01:33:53,001 --> 01:33:54,000 GENTLEWOMAN FROM ILLINOIS. 3052 01:33:54,001 --> 01:33:55,000 MS. KILROY: THANK YOU, MADAM 3053 01:33:55,001 --> 01:33:56,000 CHAIR. 3054 01:33:56,001 --> 01:33:57,000 I YIELD MYSELF SUCH TIME AS I 3055 01:33:57,001 --> 01:33:59,000 MA 3056 01:33:59,001 --> 01:34:00,000 IT'S BEEN A LITTLE OVER A YEAR 3057 01:34:00,001 --> 01:34:01,000 SINCE THE WAY THE PREDATORY 3058 01:34:01,001 --> 01:34:03,000 LENDING, CREDIT DEFAULT SWAPS 3059 01:34:03,001 --> 01:34:04,000 FINALLY GAVE WAY. 3060 01:34:04,001 --> 01:34:06,000 AND THE AMECAN TAXPAYER WAS 3061 01:34:06,001 --> 01:34:09,000 FORCED TO BAIL OUT WALL STREET. 3062 01:34:09,001 --> 01:34:10,000 AND THE SAME FINANCIAL 3063 01:34:10,001 --> 01:34:14,000 INSTITUTIONS THAT SENT OUR 3064 01:34:14,001 --> 01:34:15,000 NATION'S ECONOMY INTO THE WORSE CRISIS SINCE THE GREAT 3065 01:34:15,001 --> 01:34:17,000 DEPRESSION. 3066 01:34:17,001 --> 01:34:18,000 THE GREED AND RECKLESSNESS OF 3067 01:34:18,001 --> 01:34:20,000 WALL STRE 3068 01:34:20,001 --> 01:34:22,000 STREET DEARLY. 3069 01:34:22,001 --> 01:34:23,000 MILLIONS OF JOBS, HARD-EARNED 3070 01:34:23,001 --> 01:34:25,000 LIFE SAVINGS WERE LOST. 3071 01:34:25,001 --> 01:34:26,000 AND TODAY, AMERICAN FAMILIES 3072 01:34:26,001 --> 01:34:28,000 ARE STILL RECOVERING. 3073 01:34:28,001 --> 01:34:29,000 WE KNOW WE NEED TO TAKE ACTION 3074 01:34:29,001 --> 01:34:31,000 SO THAT AMERICAN TAXPAYERS ARE 3075 01:34:31,001 --> 01:34:32,000 NOT PUT IN THAT POSITION AGAIN. 3076 01:34:32,001 --> 01:34:34,000 AND OVER THE PAST YEAR, 3077 01:34:34,001 --> 01:34:35,000 CHAIRMAN FRANK HAS HELD 3078 01:34:35,001 --> 01:34:37,000 COUNTLESS HEARINGS, MARKUPS AND 3079 01:34:37,001 --> 01:34:39,000 MEETINGS TO HELP BRING TO THE 3080 01:34:39,001 --> 01:34:41,000 FLOOR TODAY THE MOST SWEEPING 3081 01:34:41,001 --> 01:34:42,000 REFORM OF OUR NATION'S 3082 01:34:42,001 --> 01:34:44,000 FINANCIAL REGULATORY SYSTEM 3083 01:34:44,001 --> 01:34:45,000 SINCE THE NEW DEAL. 3084 01:34:45,001 --> 01:34:48,000 AND HE'S DONE SO IN A 3085 01:34:48,001 --> 01:34:49,000 TRANSPARENT AND EQUITYIBLE 3086 01:34:49,001 --> 01:34:53,000 MANNER. 3087 01:34:53,001 --> 01:34:55,000 H.R. 4173, THE WALL STREET 3088 01:34:55,001 --> 01:34:57,000 REFORM AND CONSUMER PROTECTION 3089 01:34:57,001 --> 01:34:58,000 ACT, WILL RESTORE OUR NATION'S 3090 01:34:58,001 --> 01:34:59,000 FINANCIAL SYSTEM AND PROVIDE 3091 01:34:59,001 --> 01:35:01,000 AMERICANS THE CONFIDENCE THAT 3092 01:35:01,001 --> 01:35:04,000 THERE ARE RULES IN PLACE THAT 3093 01:35:04,001 --> 01:35:05,000 WORK FOR THEM AND PROTECT THEM, 3094 01:35:05,001 --> 01:35:08,000 NOT PROTECT THE BIG BANKS AND 3095 01:35:08,001 --> 01:35:09,000 HEDGE FUNDS AND MORTGAGE 3096 01:35:09,001 --> 01:35:10,000 INDUSTRY. 3097 01:35:10,001 --> 01:35:12,000 THERE WILL BE THE OVERSIGHT, 3098 01:35:12,001 --> 01:35:14,000 THE REGULATION THAT SHOULD KEEP 3099 01:35:14,001 --> 01:35:15,000 THIS KIND OF CRISIS FROM 3100 01:35:15,001 --> 01:35:17,000 HAPPENING AGAIN, THAT SHOULD 3101 01:35:17,001 --> 01:35:18,000 SEE AN END TO THE RISKY 3102 01:35:18,001 --> 01:35:20,000 PRACTICES THAT LED TO THE 3103 01:35:20,001 --> 01:35:21,000 TAXPAYER BAILOUT OF WALL 3104 01:35:21,001 --> 01:35:24,000 STREET. 3105 01:35:24,001 --> 01:35:26,000 BUT IT WILL ALSO THE END OF TOO 3106 01:35:26,001 --> 01:35:28,000 BILL TO FAIL PROBLEM BY 3107 01:35:28,001 --> 01:35:31,000 IMPLEMENTING A MECHANISM FOR THE ORDERLY AND CONTROLLED 3108 01:35:31,001 --> 01:35:33,000 LIQUIDATION OF A FAILED FINANCIAL INSTITUTION. 3109 01:35:33,001 --> 01:35:34,000 AND IT'S VERY CLEAR THAT THIS 3110 01:35:34,001 --> 01:35:37,000 IS GOING TO BE FUNDED BY THE 3111 01:35:37,001 --> 01:35:38,000 FINANCIAL INSTITUTIONS 3112 01:35:38,001 --> 01:35:40,000 THEMSELVES, NOT BY ANOTHER 3113 01:35:40,001 --> 01:35:43,000 BAILOUT, NOT BY THE TAXPAYERS, 3114 01:35:43,001 --> 01:35:45,000 NO MORE TARP. 3115 01:35:45,001 --> 01:35:47,000 BUT SOMETIMES INCREASED CLARITY 3116 01:35:47,001 --> 01:35:48,000 AND ADDED EMPHASIS IS CALLED 3117 01:35:48,001 --> 01:35:52,000 FOR. 3118 01:35:52,001 --> 01:35:53,000 BY ADDING ONE WORD, ONLY, TO 3119 01:35:53,001 --> 01:35:55,000 THE LANGUAGE REGARDING THE USE 3120 01:35:55,001 --> 01:36:00,000 OF ASSESSMENTS, WE PROMISE AND 3121 01:36:00,001 --> 01:36:01,000 WE REASSURE OUR TAXPAYERS THAT 3122 01:36:01,001 --> 01:36:02,000 THEY WILL NOT BE BAILING OUT 3123 01:36:02,001 --> 01:36:04,000 WALL STREET AGAIN. 3124 01:36:04,001 --> 01:36:06,000 THE DISILLUSION FUND -- 3125 01:36:06,001 --> 01:36:08,000 DISSOLUTION FUND WILL ONLY BE 3126 01:36:08,001 --> 01:36:09,000 FUNDED BY THOSE FINANCIAL 3127 01:36:09,001 --> 01:36:12,000 INSTITUTIONS FROM THEIR 3128 01:36:12,001 --> 01:36:13,000 ASSESSMENTS, NOT OUR 3129 01:36:13,001 --> 01:36:14,000 HARDWORKINTAXPAYERS AND OUR 3130 01:36:14,001 --> 01:36:16,000 CITIES AND TOWNS AND FARMS. 3131 01:36:16,001 --> 01:36:19,000 MADAM CHAIR, I URGE PASSAGE OF 3132 01:36:19,001 --> 01:36:21,000 THIS AMENDMENT AND YIE BACK. 3133 01:36:21,001 --> 01:36:23,000 THE CHAIR: DOES GENTLEWOMAN 3134 01:36:23,001 --> 01:36:25,000 YIELD OR RESERVE? 3135 01:36:25,001 --> 01:36:26,000 MS. KILROY: I RESERVE MY TIME. 3136 01:36:26,001 --> 01:36:29,000 THE CHAIR: THE GENTLEWOMAN 3137 01:36:29,001 --> 01:36:31,000 RESERVES. GENTLEMAN FROM TEXAS RISE? 3138 01:36:31,001 --> 01:36:33,000 MR. HENSARLING: TO CLAIM TIME 3139 01:36:33,001 --> 01:36:34,000 IN OPPOSITION, MADAM CHAIR. 3140 01:36:34,001 --> 01:36:35,000 THE CHAIR: E GENTLEMAN IS 3141 01:36:35,001 --> 01:36:37,000 RECOGNIZED FOR FIVE MINUTES. 3142 01:36:37,001 --> 01:36:38,000 MR. HENSARLING: I YIELD MYSELF 3143 01:36:38,001 --> 01:36:39,000 SUCH TIME AS I MAY CONSUME. 3144 01:36:39,001 --> 01:36:41,000 WELLMADAM CHAIR, 3145 01:36:41,001 --> 01:36:42,000 HEARTENED TO HEAR THE 3146 01:36:42,001 --> 01:36:43,000 GENTLELADY FROM OHIO TO SAY, 3147 01:36:43,001 --> 01:36:45,000 QUOTE, NO MORE TARPS. 3148 01:36:45,001 --> 01:36:46,000 SHE'LL HAVE AN OPPORTUNITY TO VOTE THAT WAY LATER THIS 3149 01:36:46,001 --> 01:36:48,000 AFTERNOON. 3150 01:36:48,001 --> 01:36:49,000 I HOPE THAT MANY OF HER 3151 01:36:49,001 --> 01:36:51,000 COLLEAGUES ON THAT SIDE OF THE 3152 01:36:51,001 --> 01:36:53,000 AISLE WILL FOLLOW HER EXAMPLE 3153 01:36:53,001 --> 01:36:54,000 AND PUT THEIR VOTES WHERE THEIR 3154 01:36:54,001 --> 01:36:55,000 SENTIMENT IS BECAUSE INDEED THE 3155 01:36:55,001 --> 01:36:58,000 MOTION TO RECOMMIT TODAY WILL 3156 01:36:58,001 --> 01:37:04,000 BE TO END THE TARPROGRAM. 3157 01:37:04,001 --> 01:37:05,000 SO I LOOK FORWARD TO HAVING 3158 01:37:05,001 --> 01:37:06,000 GREAT SUPPORT ON THAT SIDE OF 3159 01:37:06,001 --> 01:37:07,000 THE AISLE FOR THAT MOTION TO 3160 01:37:07,001 --> 01:37:09,000 RECOMMIT. 3161 01:37:09,001 --> 01:37:10,000 THE PARTICULAR AMENDMENT BEFORE 3162 01:37:10,001 --> 01:37:11,000 US, THOUGH, IS ONE THAT 3163 01:37:11,001 --> 01:37:13,000 CONTINUES TO TRY TO PERPETUATE 3164 01:37:13,001 --> 01:37:16,000 THE MYTH THAT SOMEHOW TAXPAYERS 3165 01:37:16,001 --> 01:37:17,000 WILL NOT BE CALLED UPON FOR A 3166 01:37:17,001 --> 01:37:20,000 BAILOUT. 3167 01:37:20,001 --> 01:37:21,000 WHY DO YOU HAVE A BAILOUT FUND? 3168 01:37:21,001 --> 01:37:24,000 YOU HAVE A BAILOUT FUND TO BAIL 3169 01:37:24,001 --> 01:37:26,000 SOMEBODY OUT. 3170 01:37:26,001 --> 01:37:29,000 AND IF FOR SOME REASON YOU 3171 01:37:29,001 --> 01:37:31,000 ACTUALLY THOUGHT THAT TAXPAYERS 3172 01:37:31,001 --> 01:37:35,000 WILL NOT BE ON THE HOOK, WELL, 3173 01:37:35,001 --> 01:37:37,000 $150 BILLION IMPOSED UPON THOSE 3174 01:37:37,001 --> 01:37:39,000 WHO FORM CAPITAL, CAPITAL 3175 01:37:39,001 --> 01:37:42,000 INTERIMMEDIATEARIES ARE GOING 3176 01:37:42,001 --> 01:37:45,000 TO MAKE CAPITAL MORE EXPENSIVE, 3177 01:37:45,001 --> 01:37:46,000 CHOKE OFF MORE CREDIT TO SMALL 3178 01:37:46,001 --> 01:37:51,000 BUSINESSES AND INCREASE THE 3179 01:37:51,001 --> 01:37:54,000 DOUBLE DIGIT UNEMPLOYMENT RATE 3180 01:37:54,001 --> 01:37:59,000 THS ADMINISTRATION AND THIS 3181 01:37:59,001 --> 01:38:02,000 CONGRESS' ECONOMIC POLICIES. 3182 01:38:02,001 --> 01:38:03,000 LOST? 3183 01:38:03,001 --> 01:38:04,000 WE NEED TO OPEN UP CREDIT, NOT 3184 01:38:04,001 --> 01:38:06,000 CLOSE CREDIT. 3185 01:38:06,001 --> 01:38:07,000 SECOND OF ALL, THE PEOPLE WHO 3186 01:38:07,001 --> 01:38:09,000 ARE TELLING US, DON'T WORRY, 3187 01:38:09,001 --> 01:38:11,000 MR. TAXPAYER, MR. TAXPAYER, YOU 3188 01:38:11,001 --> 01:38:12,000 ARE NEVER GOING TO BE CALLED 3189 01:38:12,001 --> 01:38:15,000 UPON TO BAIL OUT THESE INSTITUTIONS YET AGAIN. 3190 01:38:15,001 --> 01:38:17,000 WE HAVE SOLVED THAT PROBLEM. 3191 01:38:17,001 --> 01:38:19,000 MADAM CHAIR, THESE ARE THE VERY 3192 01:38:19,001 --> 01:38:21,000 SAME PEOPLE THAT TOLD US THAT 3193 01:38:21,001 --> 01:38:22,000 THE TAXPAYERS WOULD NEVER BE 3194 01:38:22,001 --> 01:38:24,000 CALLED TO BAIL OUT THE 3195 01:38:24,001 --> 01:38:26,000 GOVERNMENT SPONSORED ENTERPRISES, AND YET $1 3196 01:38:26,001 --> 01:38:29,000 TRILLION OF TAXPAYERS EXPOSURE 3197 01:38:29,001 --> 01:38:30,000 LIABILITY LATER THEY WERE 3198 01:38:30,001 --> 01:38:32,000 WRONG. 3199 01:38:32,001 --> 01:38:36,000 THEY TOLD US ABOUT THAT SOCIAL SECURITY GOING BANKRUPT, 3200 01:38:36,001 --> 01:38:38,000 MEDICARE GOING BANKRUPT, NATIONAL FEDERAL FLOOD 3201 01:38:38,001 --> 01:38:39,000 INSURANCE PROGRAM, NEVER GOING 3202 01:38:39,001 --> 01:38:41,000 TO NEED NATIONAL TAXPAYER 3203 01:38:41,001 --> 01:38:42,000 PROBLEM, INSOLVENT. 3204 01:38:42,001 --> 01:38:44,000 AND THE LIST GOES ON AND ON AND 3205 01:38:44,001 --> 01:38:45,000 ON. 3206 01:38:45,001 --> 01:38:46,000 NOW, MADAM CHAIR, I KNOW THEY 3207 01:38:46,001 --> 01:38:47,000 MEAN WELL. 3208 01:38:47,001 --> 01:38:48,000 I KNOW THEY BELIEVE IT WHEN 3209 01:38:48,001 --> 01:38:50,000 THEY SAY IT, BUT AS HISTORY AS 3210 01:38:50,001 --> 01:38:52,000 MY GUIDE, IT'S NOT A CREDIBLE 3211 01:38:52,001 --> 01:38:54,000 STATEMENT FOR THOSE ON THE 3212 01:38:54,001 --> 01:38:55,000 OTHER SIDE OF THE AISLE TO 3213 01:38:55,001 --> 01:38:57,000 MAKE. 3214 01:38:57,001 --> 01:38:58,000 SO WHAT ARE WE LEFT WITH? 3215 01:38:58,001 --> 01:39:00,000 WE ARE LEFT WITH A PERPETUAL 3216 01:39:00,001 --> 01:39:01,000 WALL STREET BAILOUT BILL. 3217 01:39:01,001 --> 01:39:03,000 WE ARE LEFT WITH A BILL THAT 3218 01:39:03,001 --> 01:39:04,000 WILL CRUSH JOB CREATION AT A 3219 01:39:04,001 --> 01:39:06,000 TIME WHEN OUR NATION NEEDS TO 3220 01:39:06,001 --> 01:39:09,000 BE CREATING JOBS. 3221 01:39:09,001 --> 01:39:12,000 WE HAVE A BILL THAT ASSAULTS THE FUNDAMENTAL ECONOMIC 3222 01:39:12,001 --> 01:39:13,000 LIBERTIES OF EVERY AMERICAN 3223 01:39:13,001 --> 01:39:16,000 CITIZEN WHO NOW HAS TO RECEIVE 3224 01:39:16,001 --> 01:39:18,000 THE PERMISSION OF THEIR GOVERNMENT BEFORE THEY CAN 3225 01:39:18,001 --> 01:39:19,000 FUTURE A CREDIT CARD IN THEIR 3226 01:39:19,001 --> 01:39:21,000 WALLET OR GET A MORTGAGE FOR 3227 01:39:21,001 --> 01:39:24,000 THEIR HOME. 3228 01:39:24,001 --> 01:39:25,000 THE BEST WAY TO END TARP IS TO 3229 01:39:25,001 --> 01:39:27,000 END TARP. 3230 01:39:27,001 --> 01:39:29,000 AND EVERY MEMBER OF THIS BODY 3231 01:39:29,001 --> 01:39:30,000 WILL HAVE THE OPPORTUNITY TO DO 3232 01:39:30,001 --> 01:39:31,000 LATER THIS AFTERON. 3233 01:39:31,001 --> 01:39:32,000 I RESERVE THE BALANCE OF MY 3234 01:39:32,001 --> 01:39:35,000 TIME. 3235 01:39:35,001 --> 01:39:36,000 RESERVES. 3236 01:39:36,001 --> 01:39:37,000 THE GENTLEWOMAN FROM OHIO IS 3237 01:39:37,001 --> 01:39:38,000 RECOGNIZED. 3238 01:39:38,001 --> 01:39:40,000 MS. KILROY: I YIELD TWO MINUTES 3239 01:39:40,001 --> 01:39:41,000 TO THE CHAIRMAN OF OUR 3240 01:39:41,001 --> 01:39:42,000 COMMITTEE, BARNEY FRANK. 3241 01:39:42,001 --> 01:39:44,000 TH 3242 01:39:44,001 --> 01:39:45,000 MASSACHUSETTS IS RECOGNIZED FOR 3243 01:39:45,001 --> 01:39:46,000 TWO MINUTES. 3244 01:39:46,001 --> 01:39:48,000 MR. FRANK: THE GENTLEMAN FROM 3245 01:39:48,001 --> 01:39:51,000 TEXAS'S INSTINCT BE KNOWN 3246 01:39:51,001 --> 01:39:52,000 OVERCOMES THAT SO HE HAS TO 3247 01:39:52,001 --> 01:39:56,000 NEGATIVE THINGS. 3248 01:39:56,001 --> 01:39:58,000 AMONG THEM, THOUGH, THE MOST 3249 01:39:58,001 --> 01:40:01,000 OUTLA 3250 01:40:01,001 --> 01:40:02,000 EFFORT TO BLAME UNEMPLOYMENT ON 3251 01:40:02,001 --> 01:40:04,000 PRESIDENT OBAMA. 3252 01:40:04,001 --> 01:40:05,000 PRESIDENT OBAMA INHERITED FROM 3253 01:40:05,001 --> 01:40:07,000 PRESIDENT BUSH A VERY SERIOUS 3254 01:40:07,001 --> 01:40:08,000 RECESSION. 3255 01:40:08,001 --> 01:40:09,000 IT TURNS OUT NOW THE WORST 3256 01:40:09,001 --> 01:40:12,000 SINCE THE GREAT DEPRESSION. 3257 01:40:12,001 --> 01:40:14,000 AND IT WAS BEGUN BY THOSE WHO 3258 01:40:14,001 --> 01:40:20,000 CERTIFIED THE NONPARTISAN 3259 01:40:20,001 --> 01:40:23,000 ENTITIES THAT DO THAT. 3260 01:40:23,001 --> 01:40:24,000 IN DECEMBER OF 2007 AFTER MANY 3261 01:40:24,001 --> 01:40:25,000 YEARS OF REPUBLICAN RULE, BOTH 3262 01:40:25,001 --> 01:40:26,000 IN THE HOUSE AND SENATE AND IN 3263 01:40:26,001 --> 01:40:29,000 THE WHITE HOUSE. 3264 01:40:29,001 --> 01:40:31,000 UNEMPLOYMENT IS DECREASING NOW, 3265 01:40:31,001 --> 01:40:33,000 AND YOU DON'T GO FROM VERY BAD 3266 01:40:33,001 --> 01:40:35,000 TO PERFECT. 3267 01:40:35,001 --> 01:40:37,000 BUT THIS EFFORT TO EVADE 3268 01:40:37,001 --> 01:40:39,000 RESPONSIBILITY FOR THE 3269 01:40:39,001 --> 01:40:42,000 REPUBLICAN POLICIES THAT CAUSED 3270 01:40:42,001 --> 01:40:44,000 THIS RECESSION IS, AS I SAID, 3271 01:40:44,001 --> 01:40:47,000 ONE OF THE GREAT EXAMPLES OF BLAME SHIFTING. 3272 01:40:47,001 --> 01:40:49,000 I HAVE 3273 01:40:49,001 --> 01:40:53,000 SUFFERED A GREAT DISEASE 3274 01:40:53,001 --> 01:40:55,000 OUTBREAK ON JANUARY 23, 2001. 3275 01:40:55,001 --> 01:40:57,000 MASS AMNESIA HIT THE RE 3276 01:40:57,001 --> 01:40:58,000 PARTY. 3277 01:40:58,001 --> 01:41:00,000 THE MASSIVE DEFICIT THAT 3278 01:41:00,001 --> 01:41:01,000 BROUGHT ABOUT OUR FINANCIAL 3279 01:41:01,001 --> 01:41:02,000 COLLAPSE. 3280 01:41:02,001 --> 01:41:04,000 THE MILLIONS OF JOBS LOSS, 3281 01:41:04,001 --> 01:41:06,000 ADMINISTRATION WITH THE WORST 3282 01:41:06,001 --> 01:41:07,000 JOB RECORD RECENTLY IS THE BUSH 3283 01:41:07,001 --> 01:41:08,000 ADMINISTRATION. 3284 01:41:08,001 --> 01:41:09,000 AND THE OBAMA RECOVERY IS 3285 01:41:09,001 --> 01:41:11,000 SLOWER THAN I WISH IT WOULD BE, 3286 01:41:11,001 --> 01:41:12,000 BUT IT IS CURRENTLY ON THE 3287 01:41:12,001 --> 01:41:13,000 UPSWING. 3288 01:41:13,001 --> 01:41:14,000 SECONDLY, THE 3289 01:41:14,001 --> 01:41:16,000 HIS PARTISAN POINTS WILL LASH 3290 01:41:16,001 --> 01:41:19,000 OUT AT ANYTHING. 3291 01:41:19,001 --> 01:41:20,000 SOCIAL SECURITY, HE ANNOUNCES, 3292 01:41:20,001 --> 01:41:22,000 IS GOING BANKRUPT. 3293 01:41:22,001 --> 01:41:24,000 SOCIAL SECURITY, CREDITED WITH 3294 01:41:24,001 --> 01:41:25,000 ALL THE MONEY PAID IN, IS SOUND 3295 01:41:25,001 --> 01:41:28,000 FOR ANOTHER 25 YEARS OR MORE. 3296 01:41:28,001 --> 01:41:30,000 FRIGHTENING ALL THE PEOPLE BY 3297 01:41:30,001 --> 01:41:32,000 THE FALSE CLAIM THAT SOCIAL 3298 01:41:32,001 --> 01:41:36,000 SECURITY IS GOING BANKRUPT IS 3299 01:41:36,001 --> 01:41:37,000 AN EXAMPLE OF PARTISANSHIP ON A 3300 01:41:37,001 --> 01:41:39,000 RIOT. 3301 01:41:39,001 --> 01:41:40,000 WHAT WE HAVE IS THIS RELUCTANCE 3302 01:41:40,001 --> 01:41:42,000 TO ACCEPT THE FACT THAT WE HAVE 3303 01:41:42,001 --> 01:41:43,000 LANGUAGE THAT SAYS NOTHING HERE 3304 01:41:43,001 --> 01:41:44,000 CAN GO TO PERPETUATE TH 3305 01:41:44,001 --> 01:41:46,000 INSTITUTIONS. 3306 01:41:46,001 --> 01:41:47,000 IT'S RIGHT. 3307 01:41:47,001 --> 01:41:48,000 FANNIE MAE AND FREDDIE MAC, 3308 01:41:48,001 --> 01:41:51,000 WHICH THE REPUBLICAN PARTY -- I 3309 01:41:51,001 --> 01:41:53,000 MS. KILROY: I 3310 01:41:53,001 --> 01:41:54,000 TO THE GENTLEMAN FROM 3311 01:41:54,001 --> 01:41:55,000 MASSACHUSETTS. 3312 01:41:55,001 --> 01:41:56,000 THE CHAIR: THE GENTLELADY HAS 3313 01:41:56,001 --> 01:41:58,000 30 SECONDS REMAING. 3314 01:41:58,001 --> 01:41:59,000 MR. FRANK: IN THE 12 YEARS OF 3315 01:41:59,001 --> 01:42:00,000 CONGRESSIONAL REPUBLICAN RULE, 3316 01:42:00,001 --> 01:42:02,000 THEY DIDN'T DO ANYTHING ABOUT 3317 01:42:02,001 --> 01:42:03,000 FANNIE AND FREDDIE. 3318 01:42:03,001 --> 01:42:04,000 WE DID PASS A BILL IN 2007. 3319 01:42:04,001 --> 01:42:06,000 IT WAS TOO LATE. 3320 01:42:06,001 --> 01:42:07,000 BUT WE HAVE LANGUAGE HERE THAT 3321 01:42:07,001 --> 01:42:09,000 DID NOT PREVIOUSLY EXIST THAT 3322 01:42:09,001 --> 01:42:11,000 BANS THE USE OF TAXPAYER FUNDS, 3323 01:42:11,001 --> 01:42:12,000 THAT BANS THE USE OF ANY FUNDS 3324 01:42:12,001 --> 01:42:14,000 TO KEEP AN INSTITUTION GOING. 3325 01:42:14,001 --> 01:42:15,000 SO, YES, UNLIKTHE REPUBLICANS 3326 01:42:15,001 --> 01:42:17,000 WHO D NOTHING ABOUT FANNIE 3327 01:42:17,001 --> 01:42:19,000 AND FREDDIE IN THEIR 12 YEARS, 3328 01:42:19,001 --> 01:42:20,000 NEVER PASSED A PIECE OF 3329 01:42:20,001 --> 01:42:22,000 LEGISLATION, WE PASSED A PIECE 3330 01:42:22,001 --> 01:42:23,000 OF LEGISLATION AND IT WAS TOO 3331 01:42:23,001 --> 01:42:26,000 LATE BUT WE LEARNED FROM IT AND 3332 01:42:26,001 --> 01:42:27,000 THERE IS BINDING LANGUAGE HERE 3333 01:42:27,001 --> 01:42:29,000 THAT CONTRADICTS EVERYTHING 3334 01:42:29,001 --> 01:42:32,000 THAT THE GENTLEMAN FROM TEXAS 3335 01:42:32,001 --> 01:42:33,000 SAYS BUT HE'S NOT EASILY SAID. 3336 01:42:33,001 --> 01:42:35,000 THE CHAIR: THE GE HAS EXPIRED. 3337 01:42:35,001 --> 01:42:36,000 THE GENTLEMAN FROM TEXAS IS 3338 01:42:36,001 --> 01:42:38,000 RECOGNIZED. 3339 01:42:38,001 --> 01:42:40,000 THE GENTLEMAN HAS TWO MINUTES REMAINING. 3340 01:42:40,001 --> 01:42:41,000 MR. HENSARLING: MADAM CHAIR, 3341 01:42:41,001 --> 01:42:43,000 HAS ALL TIME EXPIRED ON THIS? 3342 01:42:43,001 --> 01:42:45,000 THE CHAIR: ALL TIME HAS EXPIRED 3343 01:42:45,001 --> 01:42:46,000 ON THE OTHER SIDE. 3344 01:42:46,001 --> 01:42:47,000 THE GENTLEMAN HAS TWO MINUTES 3345 01:42:47,001 --> 01:42:49,000 REMAINING. 3346 01:42:49,001 --> 01:42:52,000 MR. HENSARLING: THANK YOU, MADAM SPEAKER. 3347 01:42:52,001 --> 01:42:53,000 IT'S MASS NESIA HAS AFFECTED 3348 01:42:53,001 --> 01:42:56,000 THAT SIDE OF THE AISLE TOO. 3349 01:42:56,001 --> 01:42:57,000 I CURRENTLY HE REMIND T 3350 01:42:57,001 --> 01:42:58,000 GENTLEMAN FROM THE FINANCIAL 3351 01:42:58,001 --> 01:43:00,000 SERVICES COMMITTEE SINCE HE 3352 01:43:00,001 --> 01:43:01,000 POINTS OUT 2007 THE YEAR THAT 3353 01:43:01,001 --> 01:43:04,000 THE FINANCIAL CRISIS STARTED, 3354 01:43:04,001 --> 01:43:06,000 IT HAPPE TO COINSIDE THE YEAR 3355 01:43:06,001 --> 01:43:07,000 THAT THE DEMOCRATS TOOK CONTROL 3356 01:43:07,001 --> 01:43:08,000 OF THE UNITED STATES CONGRESS 3357 01:43:08,001 --> 01:43:10,000 AS WELL. 3358 01:43:10,001 --> 01:43:11,000 FRANK WILL THE GENTLEMAN YIELD? 3359 01:43:11,001 --> 01:43:13,000 MR. HENSARLING: I'D BE HAPPY TO YIELD. 3360 01:43:13,001 --> 01:43:15,000 MR. FRANK: AS HE ADVANCES THE 3361 01:43:15,001 --> 01:43:16,000 ARGUMENT BECAUSE THE DEMOCRATS 3362 01:43:16,001 --> 01:43:18,000 TOOK OVER IN 2007 THAT THAT WAS 3363 01:43:18,001 --> 01:43:19,000 WHY WE HAD A RECESSION? 3364 01:43:19,001 --> 01:43:20,000 MR. HENSARLING: RECLAIMING MY 3365 01:43:20,001 --> 01:43:21,000 TIME. 3366 01:43:21,001 --> 01:43:23,000 RECLAIMING MY TIME. 3367 01:43:23,001 --> 01:43:24,000 I'M SIMPLY POINTING OUT, IF THE 3368 01:43:24,001 --> 01:43:26,000 GENTLEMAN IS TRYING TO MAKE 3369 01:43:26,001 --> 01:43:28,000 ASSOCIATIONS, OR MAKE AN 3370 01:43:28,001 --> 01:43:29,000 ASSOCIATION TO ME AS WELL, WHAT 3371 01:43:29,001 --> 01:43:33,000 I AM ASSERTING IS THAT THE 3372 01:43:33,001 --> 01:43:34,000 ECONOMIC POLICIESITHER 3373 01:43:34,001 --> 01:43:35,000 ENACTEDR THREATENED BY THIS 3374 01:43:35,001 --> 01:43:37,000 CONGRESS OR THIS ADMINISTRATION 3375 01:43:37,001 --> 01:43:39,000 IS KEEPING A RECOVERY FROM 3376 01:43:39,001 --> 01:43:41,000 HAPPENING. 3377 01:43:41,001 --> 01:43:43,000 THIS IS AN ECONOMY THAT THROUGH 3378 01:43:43,001 --> 01:43:44,000 ANY HISTORIC STANDARD 3379 01:43:44,001 --> 01:43:45,000 WHATSOEVER SHOULD HAVE ALREADY 3380 01:43:45,001 --> 01:43:48,000 RECOVERED. 3381 01:43:48,001 --> 01:43:49,000 BUT FIRST WE HAVE THE STIMULUS 3382 01:43:49,001 --> 01:43:50,000 PROGRAM WHICH WE WERE TOLD 3383 01:43:50,001 --> 01:43:52,000 WOULD KEEP US AT 8% 3384 01:43:52,001 --> 01:43:53,000 UNEMPLOYMENT. 3385 01:43:53,001 --> 01:43:56,000 NOW WE KNOW WE HAVE DOUBLE 3386 01:43:56,001 --> 01:43:58,000 DIGIT UNEMPLOYMENT, 3.6 MILLION 3387 01:43:58,001 --> 01:44:01,000 JOBS LOST SINCE THE STIMULUS PROGRAM WAS PASSED. 3388 01:44:01,001 --> 01:44:02,000 WE HAVE THE $600 BILLION ENERGY 3389 01:44:02,001 --> 01:44:04,000 TAX PASSED IN THE HOUSE HANGING 3390 01:44:04,001 --> 01:44:07,000 OVER THE ECONOMY. 3391 01:44:07,001 --> 01:44:09,000 WE HAVE THE OVER $1 TRILLION 3392 01:44:09,001 --> 01:44:10,000 NATIONALIZATION OFOUR HEALTH 3393 01:44:10,001 --> 01:44:11,000 CARE SYSTEM HANGING OVER THE 3394 01:44:11,001 --> 01:44:13,000 ECONOMY. 3395 01:44:13,001 --> 01:44:14,000 AND NOW THIS IS THE FOURTH LEG 3396 01:44:14,001 --> 01:44:17,000 OF THE STOOL. 3397 01:44:17,001 --> 01:44:21,000 AND THAT IS A PERPETUAL WALL 3398 01:44:21,001 --> 01:44:23,000 STREET BAILOUT AND FURTHER JOB 3399 01:44:23,001 --> 01:44:26,000 LOSS THROUGH CREDIT CONTRTION 3400 01:44:26,001 --> 01:44:27,000 ACT OF 2009, THE FOURTH LEG OF 3401 01:44:27,001 --> 01:44:29,000 THE ECONOMIC POLICY THAT ARE 3402 01:44:29,001 --> 01:44:30,000 PREVENTING JOBS FROM BEING 3403 01:44:30,001 --> 01:44:32,000 CREATED. 3404 01:44:32,001 --> 01:44:33,000 WHAT DO WE HAVE TO SHOW FOR THE 3405 01:44:33,001 --> 01:44:34,000 ECONOMIC POLL SIGNIFICANCE OF 3406 01:44:34,001 --> 01:44:35,000 THIS ADMINISTRATION? 3407 01:44:35,001 --> 01:44:37,000 -- POLICIES OF THIS 3408 01:44:37,001 --> 01:44:38,000 ADMINISTRATION? 3409 01:44:38,001 --> 01:44:39,000 THAT IS THE FIRST $1 TRILLION 3410 01:44:39,001 --> 01:44:41,000 DEFICIT IN OUR NATION'S 3411 01:44:41,001 --> 01:44:42,000 HISTORY. 3412 01:44:42,001 --> 01:44:43,000 WE HAVE AN ECONOMIC PLAN THAT 3413 01:44:43,001 --> 01:44:45,000 WILL TRIPLE THE NATIONAL DEBT. 3414 01:44:45,001 --> 01:44:51,000 NOTHING WOULD DO MORE TO CREATE 3415 01:44:51,001 --> 01:44:52,000 DEFEAT -- LET TARP EXPIRE -- 3416 01:44:52,001 --> 01:44:53,000 THE CHAIR: THE GENTLEMAN'S TIME 3417 01:44:53,001 --> 01:44:56,000 HAS EXPIRED. 3418 01:44:56,001 --> 01:44:57,000 ALL TIME HAVING EXPIRED -- THE 3419 01:44:57,001 --> 01:44:59,000 GENTLEMAN'S TIME HAS EXPIRED. 3420 01:44:59,001 --> 01:45:00,000 ALL TIME HAVING EXPIRED, THE 3421 01:45:00,001 --> 01:45:04,000 QUESTION IS ON THE AMENDMENT 3422 01:45:04,001 --> 01:45:06,000 OFFERED BY THE GENTLEWOMAN FROM OHIO, MS. KILROY. 3423 01:45:06,001 --> 01:45:09,000 THOSE IN FAVOR SAY AYE. 3424 01:45:09,001 --> 01:45:11,000 THOSE OPPOSED, NO. 3425 01:45:11,001 --> 01:45:13,000 IN THE OPINION OF THE CHAIR, THE AYES HAVE IT. 3426 01:45:13,001 --> 01:45:16,000 THE AMENDMENT IS AGREED TO. 3427 01:45:16,001 --> 01:45:18,000 . 3428 01:45:18,001 --> 01:45:31,000 WILL RISE 3429 01:45:31,001 --> 01:45:32,000 INFORMALLY TO 3430 01:45:32,001 --> 01:45:35,000 THE SPEAKER PRO TEMPORE: THE 3431 01:45:35,001 --> 01:45:37,000 HOUSE WILL BE IN ORDER. 3432 01:45:37,001 --> 01:45:38,000 THE CHAIR WILL RECEIVE A MESSAGE. 3433 01:45:38,001 --> 01:45:40,000 THE MESSENGER: MR. SPEAKER, A 3434 01:45:40,001 --> 01:45:41,000 MESSAGE FROM THE SENATE. 3435 01:45:41,001 --> 01:45:42,000 THE 3436 01:45:42,001 --> 01:45:43,000 THE SPEAKER PRO TEMPORE: MADAM 3437 01:45:43,001 --> 01:45:44,000 SECRETARY. THE SECRETARY: I HAVE BEEN 3438 01:45:44,001 --> 01:45:46,000 DIRECTED BY THE SENATE TO 3439 01:45:46,001 --> 01:45:47,000 INFORM THE HOUSE THAT THE 3440 01:45:47,001 --> 01:45:50,000 SENATE HAS PASSED WITHOUT 3441 01:45:50,001 --> 01:45:52,000 AMENDMENT H.R. 4218, AN ACT 3442 01:45:52,001 --> 01:45:53,000 CITED AS THE NO SOCIAL SECURITY 3443 01:45:53,001 --> 01:45:57,000 BENEFITS FOR PRISONERS AC 3444 01:45:57,001 --> 01:45:58,000 2009. 3445 01:45:58,001 --> 01:45:59,000 THE SPEAKER PRO TEMPORE: THE 3446 01:45:59,001 --> 01:46:07,000 COMMITTEE WILL RESUME ITS 3447 01:46:07,001 --> 01:46:08,000 SITTING. 3448 01:46:08,001 --> 01:46:22,000 THE CHAIR: THE COMMITTEE WILL 3449 01:46:22,001 --> 01:46:24,000 BE IN ORDER. 3450 01:46:24,001 --> 01:46:26,000 PURSUANT TO CLAUSE 6 OF RULE 3451 01:46:26,001 --> 01:46:28,000 18, PROCEEDINGS WILL NOW RESUME 3452 01:46:28,001 --> 01:46:30,000 ON THOSE AMENDMENTS PRINTED IN 3453 01:46:30,001 --> 01:46:32,000 HOUSE REPORT 111-370 ON WHICH 3454 01:46:32,001 --> 01:46:33,000 FURTHER PROCEEDINGS WERE 3455 01:46:33,001 --> 01:46:34,000 POSTPONED THE FOLLOWING 3456 01:46:34,001 --> 01:46:36,000 ORDER. 3457 01:46:36,001 --> 01:46:38,000 AMENDMENT NUMBER 12 BY MR. 3458 01:46:38,001 --> 01:46:41,000 KANJORSKI OF PENNSYLVANIA. 3459 01:46:41,001 --> 01:46:43,000 AMENDMENT NUMBER 14 BY MR. 3460 01:46:43,001 --> 01:46:44,000 MCCARTHY OF CALIFORNIA. 3461 01:46:44,001 --> 01:46:46,000 AMENDMENT NUMBER 16 BY MR. 3462 01:46:46,001 --> 01:46:47,000 PETERS OF MICHIGAN. 3463 01:46:47,001 --> 01:46:49,000 THE CHAIR WILL REDUCE TO FIVE 3464 01:46:49,001 --> 01:46:51,000 MINUTES THE TIME FOR ANY 3465 01:46:51,001 --> 01:46:55,000 ELECTRONIC VOTE VOTE 3466 01:46:55,001 --> 01:46:56,000 VOTE IN THE SERIES. 3467 01:46:56,001 --> 01:46:58,000 THE 3468 01:46:58,001 --> 01:47:00,000 REQUEST FOR RECORDED VOTE ON 3469 01:47:00,001 --> 01:47:03,000 AMENDMENT NUMBER 12 PRINTED IN 3470 01:47:03,001 --> 01:47:05,000 HOUSE 3471 01:47:05,001 --> 01:47:06,000 BY T 3472 01:47:06,001 --> 01:47:09,000 PENNSYLVANIA, MR. CAN JUROR SKIRKS ON WHICH FURTHER 3473 01:47:09,001 --> 01:47:10,000 PROCEEDINGS WERE POSTPONED AND 3474 01:47:10,001 --> 01:47:11,000 ON WHICH THE AYES PREVAILED BY 3475 01:47:11,001 --> 01:47:12,000 VOICE VOTE. 3476 01:47:12,001 --> 01:47:13,000 THE CLERK WILL REDESIGNATE TH 3477 01:47:13,001 --> 01:47:14,000 AMENDMENT. 3478 01:47:14,001 --> 01:47:16,000 THE CLERK: AMENDMENT NUMBER 12, 3479 01:47:16,001 --> 01:47:18,000 PRINTED IN HOUSE REPORT NUMBER 3480 01:47:18,001 --> 01:47:20,000 111-370, OFFERED 3481 01:47:20,001 --> 01:47:22,000 KANJORSKI OF PENNSYLVANIA. 3482 01:47:22,001 --> 01:47:23,000 THE CHAIR: A RECORDED VOTE BEEN REQUESTED. 3483 01:47:23,001 --> 01:47:25,000 THOSE IN SUPPORT OF THE REQUEST 3484 01:47:25,001 --> 01:47:28,000 FOR RECORDED VOTE WILL 3485 01:47:28,001 --> 01:47:29,000 BE COUNTED. 3486 01:47:29,001 --> 01:47:31,000 A SUFFICIENT NUMBER HAVING ARISEN, A RECORDED VOTE IS 3487 01:47:31,001 --> 01:47:34,000 ORDERED. MEMBERS WILL RECORD THEIR VOTES 3488 01:47:34,001 --> 01:47:35,000 BY ELECTRONIC DEVICE.