1 00:00:00,000 --> 00:00:00,000 starttime 1279200648.43656 2 00:00:00,001 --> 00:00:02,000 THE PRESIDING OFFICER: THE 3 00:00:02,001 --> 00:00:06,000 SENATE WILL COME TO ORDER. 4 00:00:06,001 --> 00:00:07,000 THE GUEST CHAPLAIN REVEREND 5 00:00:07,001 --> 00:00:09,000 DONNA R. KAFER WILL LEAD THE 6 00:00:09,001 --> 00:00:11,000 SENATE IN PRAYER. 7 00:00:11,001 --> 00:00:17,000 SHE IS THE CHAPLAIN OF THE 8 00:00:17,001 --> 00:00:19,000 ARIZONA STATE LEGISLATURE. 9 00:00:19,001 --> 00:00:21,000 THE CHAPLAIN: LET US PRAY. 10 00:00:21,001 --> 00:00:22,000 DEAR HOLY AND RIGHTEOUS FATHER, 11 00:00:22,001 --> 00:00:24,000 WE COME BEFORE YOU THIS DAY WITH 12 00:00:24,001 --> 00:00:26,000 HUMBLE HEARTS, THOUGHTFUL MINDS 13 00:00:26,001 --> 00:00:28,000 AND A PROFOUND UNDERSTANDING OF 14 00:00:28,001 --> 00:00:29,000 YOUR MAJESTY. 15 00:00:29,001 --> 00:00:31,000 AS THIS SENATE BODY CONVENES 16 00:00:31,001 --> 00:00:33,000 TODAY, I ASK, LORD, THAT YOU 17 00:00:33,001 --> 00:00:35,000 GIVE EACH AND EVERY ONE OUR 18 00:00:35,001 --> 00:00:36,000 SENATORS A UNIQUE SENSE OF THEIR 19 00:00:36,001 --> 00:00:38,000 ROLE IN SHAPING THIS GREAT 20 00:00:38,001 --> 00:00:39,000 NATION. 21 00:00:39,001 --> 00:00:41,000 WE UNDERSTAND THAT THIS MANTLE 22 00:00:41,001 --> 00:00:44,000 OF LEADERSHIP HOLDS A GREAT 23 00:00:44,001 --> 00:00:45,000 MEASURE OF RESPONSIBILITY, SO WE 24 00:00:45,001 --> 00:00:47,000 PETION YOU, FATHER, TO IMPART 25 00:00:47,001 --> 00:00:49,000 YOUR WISDOM, PEACE AND COMFORT 26 00:00:49,001 --> 00:00:52,000 TO EACH ONE OF THEM. 27 00:00:52,001 --> 00:00:55,000 PROVIDE THEM, LORD, WITH CLARITY 28 00:00:55,001 --> 00:00:57,000 OF MIND, VISION FOR THE FUTURE, 29 00:00:57,001 --> 00:00:59,000 AND A RENEWED SENSE OF PURPOSE. 30 00:00:59,001 --> 00:01:02,000 FILL THEIR HEARTS WITH 31 00:01:02,001 --> 00:01:03,000 COMPASSION, DISCERNMENT, FOCUS 32 00:01:03,001 --> 00:01:04,000 AND THE STRENGTH TO MEET THE 33 00:01:04,001 --> 00:01:06,000 COMPLEX TASKS AT HAND. 34 00:01:06,001 --> 00:01:07,000 FATHER, GIVE THEM COMPLETE 35 00:01:07,001 --> 00:01:10,000 HEALTH: MENTALLY, PHYSICALLY, 36 00:01:10,001 --> 00:01:12,000 EMOTIONALLY AND SPIRITUALLY. 37 00:01:12,001 --> 00:01:13,000 EMBRACE THEM WITH YOUR LOVE THAT 38 00:01:13,001 --> 00:01:15,000 THEY MAY KNOW YOUR BOUNDLESS 39 00:01:15,001 --> 00:01:16,000 AFFECTION FOR THEM AND YOUR 40 00:01:16,001 --> 00:01:18,000 IN-DEPTH CONCERN FOR THEIR 41 00:01:18,001 --> 00:01:19,000 WELL-BEING. 42 00:01:19,001 --> 00:01:22,000 WE THANK YOU, GOD, FOR HEARING 43 00:01:22,001 --> 00:01:23,000 OUR PETIONS THIS DAY. 44 00:01:23,001 --> 00:01:25,000 IT IS IN YOUR PRECIOUS NAME WE 45 00:01:25,001 --> 00:01:37,000 PRAY. 46 00:01:37,001 --> 00:01:38,000 AMEN. 47 00:01:38,001 --> 00:01:39,000 THE PRESIDING OFFICER: PLEASE 48 00:01:39,001 --> 00:01:40,000 JOIN ME IN RECITING THE PLEDGE 49 00:01:40,001 --> 00:01:42,000 OF ALLEGIANCE. 50 00:01:42,001 --> 00:01:43,000 I PLEDGE ALLEGIANCE 51 00:01:43,001 --> 00:01:44,000 TO THE FLAG 52 00:01:44,001 --> 00:01:45,000 OF THE UNITED STATES 53 00:01:45,001 --> 00:01:46,000 OF AMERICA, 54 00:01:46,001 --> 00:01:47,000 AND TO THE REPUBLIC 55 00:01:47,001 --> 00:01:48,000 FOR WHICH IT STANDS, 56 00:01:48,001 --> 00:01:49,000 ONE NATION 57 00:01:49,001 --> 00:01:50,000 UNDER GOD, 58 00:01:50,001 --> 00:01:51,000 INDIVISIBLE, 59 00:01:51,001 --> 00:01:59,000 WITH LIBERTY 60 00:01:59,001 --> 00:02:00,000 AND JUSTICE FOR ALL. 61 00:02:00,001 --> 00:02:01,000 THE PRESIDING OFFICER: THE 62 00:02:01,001 --> 00:02:02,000 CLERK WILL READ A COMMUNICATION 63 00:02:02,001 --> 00:02:04,000 TO THE SENATE. 64 00:02:04,001 --> 00:02:07,000 THE CLERK: WASHINGTON, D.C., 65 00:02:07,001 --> 00:02:08,000 JULY 15, 2010. 66 00:02:08,001 --> 00:02:09,000 UNDER THE PRISIONS OF 67 00:02:09,001 --> 00:02:10,000 RULE 1, PARAGRAPH 3, 68 00:02:10,001 --> 00:02:12,000 OF THE STANDING RULES 69 00:02:12,001 --> 00:02:13,000 OF THE SENATE, 70 00:02:13,001 --> 00:02:14,000 I HEREBY APPOINT THE HONORABLE 71 00:02:14,001 --> 00:02:15,000 KIRSTEN E. GILLIBRAND, A SENATOR 72 00:02:15,001 --> 00:02:16,000 FROM THE STATE OF NEW YORK, TO PERFORM THE DUTIES OF THE 73 00:02:16,001 --> 00:02:18,000 CHAIR. 74 00:02:18,001 --> 00:02:25,000 SIGNED: DANIEL K. OUYE, 75 00:02:25,001 --> 00:02:26,000 PRESIDENT PRO TEMPORE. 76 00:02:26,001 --> 00:02:27,000 THE PRESIDING OFFICER: UNDER THE 77 00:02:27,001 --> 00:02:29,000 PREVIOUS ORDER, THE LEADERSHIP 78 00:02:29,001 --> 00:02:30,000 TIME IS RESERVED. 79 00:02:30,001 --> 00:02:31,000 MR. KYL: MADAM PRESIDENT? THE PRESIDING OF 80 00:02:31,001 --> 00:02:32,000 SENATOR FROM ARIZONA. 81 00:02:32,001 --> 00:02:34,000 MR. KYL: THANK YOU, MADAM PRESIDENT. 82 00:02:34,001 --> 00:02:37,000 IT IS MY HONOR TODAY TO HELP 83 00:02:37,001 --> 00:02:39,000 HOST OUR GUEST CHAPLAIN FROM 84 00:02:39,001 --> 00:02:40,000 ARIZONA, REVEREND DONNA KAFER. 85 00:02:40,001 --> 00:02:42,000 ON BEHALF OF SENATOR McCAIN 86 00:02:42,001 --> 00:02:44,000 AND I, I THANK THE CHAPLAIN AND 87 00:02:44,001 --> 00:02:46,000 ALL THE OTHERS WHO HAVE BEE SO 88 00:02:46,001 --> 00:02:48,000 COURTEOUS TO REVEREND KAFER IN 89 00:02:48,001 --> 00:02:50,000 HER VISIT HERE TO WASHINGTON, D.C. 90 00:02:50,001 --> 00:02:52,000 SHE, I UNDERSTAND FROM OUR 91 00:02:52,001 --> 00:02:53,000 CHAPLAIN, IS THE FIRST 92 00:02:53,001 --> 00:02:55,000 LEGISLATIVE CHAPLAIN TO PROVIDE 93 00:02:55,001 --> 00:02:57,000 THE OPENING PRAYER HERE IN THE 94 00:02:57,001 --> 00:03:00,000 UNITED STATES SENATE AND ONLY 95 00:03:00,001 --> 00:03:02,000 THE SECON WOMAN TO HAVE DONE 96 00:03:02,001 --> 00:03:04,000 THAT, SO THERE ARE MILESTONES 97 00:03:04,001 --> 00:03:05,000 ACHIEVED TODAY, AND 98 00:03:05,001 --> 00:03:07,000 APPRECIATE HER BEING WITH 99 00:03:07,001 --> 00:03:08,000 SHE HAS BEEN THE CHAPLAIN AT THE 100 00:03:08,001 --> 00:03:10,000 ARIZONA STATE LEGISLATURE FOR 101 00:03:10,001 --> 00:03:12,000 OVER TEN YEARS, AND SHE IS -- 102 00:03:12,001 --> 00:03:13,000 SHE SERVES THROUGH H OWN 103 00:03:13,001 --> 00:03:14,000 NONPROFIT ORGANIZATION CALLED 104 00:03:14,001 --> 00:03:17,000 LEADERSHIP CHALLENGE OF ARIZONA. 105 00:03:17,001 --> 00:03:18,000 SHE ALSO SERVES AS THE ARIZONA 106 00:03:18,001 --> 00:03:21,000 AREA COORDINATOR OF THE DOLLARS 107 00:03:21,001 --> 00:03:22,000 OF DESTINY NETWORK, WHICH IS A 108 00:03:22,001 --> 00:03:24,000 WOMAN'S PRISON MINISTRY BASED 109 00:03:24,001 --> 00:03:26,000 OUT OF COLORADO SPRINGS, AND SHE 110 00:03:26,001 --> 00:03:27,000 TRAVELS THROUGHOUT THE UNITED 111 00:03:27,001 --> 00:03:29,000 STATES SHARING HER TESTIMONY 112 00:03:29,001 --> 00:03:30,000 WITH INCARCERATED WOMEN, 113 00:03:30,001 --> 00:03:31,000 ENCOURAGING THEM AND SHARING THE 114 00:03:31,001 --> 00:03:33,000 FREEDOM THAT IS OFFERED THROUGH 115 00:03:33,001 --> 00:03:35,000 THE SAVING GRACE OF JESUS CHRIST. 116 00:03:35,001 --> 00:03:38,000 DONNA IS AN ARIZONA NATIVE. 117 00:03:38,001 --> 00:03:40,000 SHE AND HER HUSBAND ROSS, WHO IS 118 00:03:40,001 --> 00:03:42,000 A FIREFIGHTER PARAMEDIC FOR 119 00:03:42,001 --> 00:03:44,000 ALMOST 20 YEARS IN THE PHOENIX 120 00:03:44,001 --> 00:03:45,000 METROPOLITAN AREA HAVE A 121 00:03:45,001 --> 00:03:49,000 DAUGHTER ANDREA ELIZABETH, AND 122 00:03:49,001 --> 00:03:51,000 AS I SAID, IT IS OUR PROUD 123 00:03:51,001 --> 00:03:53,000 OPPORTUNITY TO HELP TO HOST HER 124 00:03:53,001 --> 00:03:55,000 TODAY AND THANK HER FOR OPENING 125 00:03:55,001 --> 00:03:56,000 THE SENATE WITH THAT BEAUTIFUL 126 00:03:56,001 --> 00:03:57,000 PRAYER. 127 00:03:57,001 --> 00:03:58,000 MR. REID: MADAM PRESIDENT? THE PRESIDING OFFICER: THE 128 00:03:58,001 --> 00:04:00,000 MAJORITY LEADER. 129 00:04:00,001 --> 00:04:01,000 MR. REID: EVERY THURSDAY, 130 00:04:01,001 --> 00:04:03,000 SENATOR ENSIGN AND I GREET 131 00:04:03,001 --> 00:04:05,000 PEOPLE FROM NEVADA, AND WE HAD A 132 00:04:05,001 --> 00:04:07,000 LOT OF THEM TODAY AND I WAS LATE 133 00:04:07,001 --> 00:04:09,000 GETTING HERE, SO I'M SORRY I 134 00:04:09,001 --> 00:04:10,000 MISSED THE PRAYER, BUT I WILL 135 00:04:10,001 --> 00:04:13,000 READ THAT PRAYER AND RECOGNIZE 136 00:04:13,001 --> 00:04:15,000 WHAT SENATOR KYL SAID AUT YOU. 137 00:04:15,001 --> 00:04:16,000 SO WE'RE -- WE WELCOME YOU TO 138 00:04:16,001 --> 00:04:18,000 THE UNITED STATES SENATE. 139 00:04:18,001 --> 00:04:20,000 MADAM PRESIDENT, FOLLOWING 140 00:04:20,001 --> 00:04:23,000 LEADER REMARKS, THE SENATE WILL RESUME CONSIDERATION OF THE 141 00:04:23,001 --> 00:04:26,000 CONFERENCE REPORT TO ACCOMPANY 142 00:04:26,001 --> 00:04:27,000 H.R. 4173, WHICH IS THE WALL 143 00:04:27,001 --> 00:04:29,000 STREET REFORM LEGISLATION. 144 00:04:29,001 --> 00:04:31,000 AT ABOUT 11:00 A.M. THIS MORNING, THE SENATE WILL PROCEED 145 00:04:31,001 --> 00:04:33,000 TO A ROLL CALL VOTE ON THE 146 00:04:33,001 --> 00:04:34,000 MOTION TO INVOKE CLOTURE ON THAT 147 00:04:34,001 --> 00:04:37,000 CONFERENCE REPORT. 148 00:04:37,001 --> 00:04:38,000 IF CLOTURE IS INVOKED, WE'D LIKE 149 00:04:38,001 --> 00:04:39,000 TO YIELD BACK SOME OF THE 150 00:04:39,001 --> 00:04:41,000 POSTCLOTURE DEBATE TIME SO WE 151 00:04:41,001 --> 00:04:43,000 MAY COMPLETE ACTION ON THE WALL 152 00:04:43,001 --> 00:04:44,000 STREET REFORM LEGISLATION TODAY. 153 00:04:44,001 --> 00:04:47,000 THERE COULD BE ADDITIONAL ROLL 154 00:04:47,001 --> 00:04:48,000 CALL VOTES THIS AFTERNOON. 155 00:04:48,001 --> 00:04:51,000 FOR THE BENEFIT OF THE SENATORS, 156 00:04:51,001 --> 00:04:53,000 I HAVE SPOKEN TO THE TWO 157 00:04:53,001 --> 00:04:55,000 REPUBLICAN LEADERS AND WE STILL 158 00:04:55,001 --> 00:04:58,000 HAVE SOME HOPE OF BEING ABLE TO 159 00:04:58,001 --> 00:05:01,000 HAVE -- SET UP SOME VOTES ON THE 160 00:05:01,001 --> 00:05:04,000 SMALL BUSINESS JOBS BILL. 161 00:05:04,001 --> 00:05:05,000 I HOPE WE CAN DO THAT. 162 00:05:05,001 --> 00:05:07,000 OTHERWISE, WE'LL HAVE TO PROCEED 163 00:05:07,001 --> 00:05:11,000 TO A CLOTURE VOTE ON THAT 164 00:05:11,001 --> 00:05:12,000 SOMETIME NEXT WEEK. 165 00:05:12,001 --> 00:05:13,000 S. 3588 IS AT THE DESK. 166 00:05:13,001 --> 00:05:15,000 I UNDERSTAND IT'S DUE FOR ITS 167 00:05:15,001 --> 00:05:16,000 COND READING. 168 00:05:16,001 --> 00:05:17,000 THE PRESIDING OFFICER: THE 169 00:05:17,001 --> 00:05:18,000 SENATOR IS CORRECT. 170 00:05:18,001 --> 00:05:21,000 THE CLERK WILL READ THE TITLE OF 171 00:05:21,001 --> 00:05:23,000 THE BILL FOR THE SECOND TIME. 172 00:05:23,001 --> 00:05:25,000 THE CLERK: S. 3588, A BILL TO 173 00:05:25,001 --> 00:05:26,000 LIMIT THE MORATORIUM ON CERTAIN 174 00:05:26,001 --> 00:05:28,000 PERMITTING AND DRILLING 175 00:05:28,001 --> 00:05:29,000 ACTIVITIES ISSUED BY THE 176 00:05:29,001 --> 00:05:31,000 SECRETARY OF THE INTERIOR AND 177 00:05:31,001 --> 00:05:32,000 FOR OTHER PURPOSES. 178 00:05:32,001 --> 00:05:33,000 MR. REID: MADAM PRESIDENT, I 179 00:05:33,001 --> 00:05:36,000 WOULD OBJECT TO ANY FURTHER 180 00:05:36,001 --> 00:05:37,000 PROCEEDINGS WITH RESPECT TO THIS BILL. 181 00:05:37,001 --> 00:05:38,000 THE PRESIDING OFFICER: OBJECTION 182 00:05:38,001 --> 00:05:41,000 IS HEARD. 183 00:05:41,001 --> 00:05:42,000 THE BILL WILL BE PLACED ON THE 184 00:05:42,001 --> 00:05:43,000 CALENDAR. 185 00:05:43,001 --> 00:05:45,000 MR. REID: WOULD THE CHAIR 186 00:05:45,001 --> 00:05:46,000 ANNOUNCE THE BUSINESS OF THE 187 00:05:46,001 --> 00:05:48,000 DAY? THE PRESIDING OFFICER: UNDER THE 188 00:05:48,001 --> 00:05:49,000 PREVIOUS ORDER, THE SENATE WILL 189 00:05:49,001 --> 00:05:52,000 RESUME CONSIDERATION OF THE 190 00:05:52,001 --> 00:05:54,000 CONFERENCE REPORT TO ACCOMPANY 191 00:05:54,001 --> 00:05:55,000 H.R. 4173, WHICH THE CLERK WILL 192 00:05:55,001 --> 00:06:00,000 REPORT. 193 00:06:00,001 --> 00:06:02,000 THE CLERK: CONFERENCE REPORT TO 194 00:06:02,001 --> 00:06:04,000 PROMOTE THE FINANCIAL STABILITY 195 00:06:04,001 --> 00:06:05,000 OF THE UNITED STATES AND SO 196 00:06:05,001 --> 00:06:06,000 FORTH AND FOR OTHER PURPOSES. 197 00:06:06,001 --> 00:06:08,000 THE PRESIDING OFFICER: UNDER THE 198 00:06:08,001 --> 00:06:10,000 PREVIOUS ORDER, THE TIME 199 00:06:10,001 --> 00:06:11,000 11:00 A.M. SHALL BE EQUALLY 200 00:06:11,001 --> 00:06:12,000 DIVIDED AND CONTROLLED BY THE 201 00:06:12,001 --> 00:06:13,000 SENATOR FROM CONNECTICUT, 202 00:06:13,001 --> 00:06:16,000 MR. DODD, AND THE SENATOR FROM 203 00:06:16,001 --> 00:06:17,000 ALABAMA, MR. SHELBY, OR THEIR 204 00:06:17,001 --> 00:06:18,000 DESIGNEES, WITH THE FINAL 20 205 00:06:18,001 --> 00:06:21,000 MINUTES DIVIDED EQUALLY BETWEEN 206 00:06:21,001 --> 00:06:34,000 THE TWO MANAGERS AND THE TWO 207 00:06:34,001 --> 00:06:35,000 LEADERS. 208 00:06:35,001 --> 00:06:42,000 THE PRESIDING OFFICER: THE 209 00:06:42,001 --> 00:06:43,000 SENATOR FROM HAWAII. 210 00:06:43,001 --> 00:06:45,000 MR. AKAKA: MADAM PRESIDENT? THE PRESIDING OFFICER: THE 211 00:06:45,001 --> 00:06:47,000 SENATOR FROM HAWAII. 212 00:06:47,001 --> 00:06:48,000 MR. AKAKA: I WILL MAKE SOME 213 00:06:48,001 --> 00:06:51,000 BRIEF REMARKS. 214 00:06:51,001 --> 00:06:53,000 I ASK UNANIMOUS CONSENT THAT MY 215 00:06:53,001 --> 00:06:54,000 FULL STATEMENT BE INCLUDED IN THE RECORD. 216 00:06:54,001 --> 00:06:56,000 THE PRESIDING OFFICER: WITHOUT 217 00:06:56,001 --> 00:07:00,000 OBJECTION. 218 00:07:00,001 --> 00:07:04,000 MR. AKAKA: MADAM PRESIDENT, I 219 00:07:04,001 --> 00:07:06,000 STRONGLY SUPPORT THE DODD-FRANK 220 00:07:06,001 --> 00:07:08,000 CONFERENCE REPORT. 221 00:07:08,001 --> 00:07:12,000 I COMMEND THE CHAIRMAN FOR ALL 222 00:07:12,001 --> 00:07:14,000 OF HIS WORK TO ADDRESS SO MANY 223 00:07:14,001 --> 00:07:15,000 ISSUES VITALLY IMPORTANT TO 224 00:07:15,001 --> 00:07:17,000 WORKING FAMILS. 225 00:07:17,001 --> 00:07:20,000 I THANK MY FRIEND FROM 226 00:07:20,001 --> 00:07:23,000 CONNECTICUT FOR WORKING CLOSELY 227 00:07:23,001 --> 00:07:25,000 WITH ME TO ENSURE THAT THIS 228 00:07:25,001 --> 00:07:27,000 LEGISLATION WILL EDUCATE, 229 00:07:27,001 --> 00:07:31,000 PROTECT AND EMPOWER CONSUMERS 230 00:07:31,001 --> 00:07:33,000 AND INVESTORS. 231 00:07:33,001 --> 00:07:36,000 AN OFFICE OF FINANCIAL EDUCATION 232 00:07:36,001 --> 00:07:39,000 WITHIN THE CONSUMER FINANCIAL 233 00:07:39,001 --> 00:07:40,000 PROTECTION BUREAU IS CREATED BY 234 00:07:40,001 --> 00:07:43,000 THIS LEGISLATION. 235 00:07:43,001 --> 00:07:46,000 THE OFFICE'S TASK WAS DEVELOPING 236 00:07:46,001 --> 00:07:50,000 AND IMPLEMENTING INITIATIVES TO 237 00:07:50,001 --> 00:07:52,000 EDUCATE AND EMPOWER CONSUMERS. 238 00:07:52,001 --> 00:07:55,000 A STRATEGY TO IMPROVE THE 239 00:07:55,001 --> 00:07:56,000 FINANCIAL LITERACY AMONG 240 00:07:56,001 --> 00:08:00,000 CONSUMERS THAT INCLUDES 241 00:08:00,001 --> 00:08:03,000 MEASURABLE GOALS AND BENCHMARKS 242 00:08:03,001 --> 00:08:07,000 MUST BE DEVELOPED. 243 00:08:07,001 --> 00:08:09,000 THE CONFERENCE REPORT ALSO 244 00:08:09,001 --> 00:08:11,000 ADDRESSES INVESTOR LITERACY. 245 00:08:11,001 --> 00:08:13,000 A FINANCIAL LITERACY STUDY MUST 246 00:08:13,001 --> 00:08:16,000 BE CONDUCTED BY THE SECURITIES 247 00:08:16,001 --> 00:08:19,000 AND EXCHANGE COMMISSION. 248 00:08:19,001 --> 00:08:21,000 THE S.E.C. MUST DEVELOP AN 249 00:08:21,001 --> 00:08:24,000 INVESTMENT FINANCIAL LITERACY 250 00:08:24,001 --> 00:08:29,000 STRATEGY INTENDED TO BRING ABOUT 251 00:08:29,001 --> 00:08:32,000 POSITIVE BEHAVIORAL CHANGE AMONG 252 00:08:32,001 --> 00:08:34,000 INVESTORS. 253 00:08:34,001 --> 00:08:35,000 CONSUMER AND INVESTMENT 254 00:08:35,001 --> 00:08:38,000 PROTECTIONS FOR WORKING FAMILIES 255 00:08:38,001 --> 00:08:40,000 ARE INCLUDED IN THE CONFERENCE 256 00:08:40,001 --> 00:08:41,000 REPORT. 257 00:08:41,001 --> 00:08:43,000 REGULATORS FAILED TO PROTECT 258 00:08:43,001 --> 00:08:46,000 CONSUMERS, AND THAT CONTRIBUTED 259 00:08:46,001 --> 00:08:47,000 SIGNIFICANTLY TO THE FINANCIAL 260 00:08:47,001 --> 00:08:50,000 CRISIS. 261 00:08:50,001 --> 00:08:52,000 THE PROSPECTIVE HOME BUYERS WERE 262 00:08:52,001 --> 00:08:54,000 STEERED INTO MORTGAGE PRODUCTS 263 00:08:54,001 --> 00:08:58,000 THAT HAD RISKS AND COSTS THAT 264 00:08:58,001 --> 00:09:00,000 THEY COULD NOT UNDERSTAND OR AFFORD. 265 00:09:00,001 --> 00:09:02,000 THE CONSUMER FINANCIAL 266 00:09:02,001 --> 00:09:06,000 PROTECTION BUREAU WILL BE 267 00:09:06,001 --> 00:09:07,000 EMPOWERED TO RESTRICT PREDATORY 268 00:09:07,001 --> 00:09:12,000 FINANCIAL PRODUCTS AND UNFAIR 269 00:09:12,001 --> 00:09:14,000 BUSINESS PRACTICES IN ORDER TO 270 00:09:14,001 --> 00:09:16,000 PREVENT UNSCRUPULOUS FINANCIAL 271 00:09:16,001 --> 00:09:17,000 SERVICES PROVIDERS FROM TAKING 272 00:09:17,001 --> 00:09:21,000 ADVANTAGE OF CONSUMERS. 273 00:09:21,001 --> 00:09:23,000 THIS LEGISLATION ALSO INCLUDES 274 00:09:23,001 --> 00:09:27,000 LANDMARK CONSUMER PROTECTIONS 275 00:09:27,001 --> 00:09:29,000 FOR REMITTANCES TRANSACTIONS. 276 00:09:29,001 --> 00:09:32,000 WORKING FAMILIES OFTEN SEND 277 00:09:32,001 --> 00:09:33,000 SUBSTANTIAL PORTIONS OF THEIR 278 00:09:33,001 --> 00:09:35,000 EARNINGS TO FAMILY MEMBERS 279 00:09:35,001 --> 00:09:37,000 LIVING ABROAD. 280 00:09:37,001 --> 00:09:40,000 IN HAWAII, MANY OF MY 281 00:09:40,001 --> 00:09:42,000 CONSTITUENTS REMIT MONEY TO 282 00:09:42,001 --> 00:09:43,000 THEIR FAMILY MEMBERS LIVING IN 283 00:09:43,001 --> 00:09:44,000 THE PHILIPPINES. 284 00:09:44,001 --> 00:09:47,000 CONSUMERS CAN HAVE SERIOUS 285 00:09:47,001 --> 00:09:49,000 PROBLEMS WITH THEIR REMITTANCES 286 00:09:49,001 --> 00:09:52,000 TRANSACTIONS, SUCH AS BEING 287 00:09:52,001 --> 00:09:54,000 OVERCHARGED OR NOT HAVING THE 288 00:09:54,001 --> 00:09:56,000 MONEY REACH THE INTENDED 289 00:09:56,001 --> 00:09:58,000 RECIPIENT. 290 00:09:58,001 --> 00:10:01,000 THE CONFERENCE REPORT MODIFIES 291 00:10:01,001 --> 00:10:02,000 THE ELECTRONIC FUND TRANSFER ACT 292 00:10:02,001 --> 00:10:05,000 TO ESTABLISH CONSUMER 293 00:10:05,001 --> 00:10:08,000 PROTECTIONS FOR REMITTANCES. 294 00:10:08,001 --> 00:10:11,000 IT WILL REQUIRE SIMPLE 295 00:10:11,001 --> 00:10:13,000 DISCLOSURES ABOUT THE COSTS OF 296 00:10:13,001 --> 00:10:14,000 SENDING REMITTANCES TO BE 297 00:10:14,001 --> 00:10:20,000 PROVIDED TO THE CONSUMER PRIOR 298 00:10:20,001 --> 00:10:22,000 TO AND AFTER THE TRANSACTION. 299 00:10:22,001 --> 00:10:24,000 A COMPLAINT AND ERROR RESOLUTION 300 00:10:24,001 --> 00:10:26,000 PROCESS FOR REMITTANCE 301 00:10:26,001 --> 00:10:27,000 TRANSACTIONS WOULD BE 302 00:10:27,001 --> 00:10:29,000 ESTABLISHED. 303 00:10:29,001 --> 00:10:33,000 MADAM PRESIDENT, I TAKE GREAT 304 00:10:33,001 --> 00:10:35,000 PRIDE IN MY CONTRIBUTIONS TO THE 305 00:10:35,001 --> 00:10:37,000 INVESTOR PROTECTION PORTION OF 306 00:10:37,001 --> 00:10:38,000 THE LEGISLATION. 307 00:10:38,001 --> 00:10:42,000 THE INCLUSION OF MY PROPOSAL TO 308 00:10:42,001 --> 00:10:44,000 CREATE AN INVESTOR ADVOCATE WILL 309 00:10:44,001 --> 00:10:47,000 STRENGTHEN THE ABILITY OF THE 310 00:10:47,001 --> 00:10:52,000 S.E.C. TO BETTER REPRESENT THE 311 00:10:52,001 --> 00:10:54,000 INTERESTS OF RETAIL INVESTORS. 312 00:10:54,001 --> 00:10:56,000 THE INVESTOR ADVOCATE'S MISSION 313 00:10:56,001 --> 00:11:00,000 INCLUDES IDENTIFYING AREAS WHERE 314 00:11:00,001 --> 00:11:01,000 INVESTORS WOULD BENEFIT FROM 315 00:11:01,001 --> 00:11:04,000 CHANGES IN COMMISSION POLICIES 316 00:11:04,001 --> 00:11:08,000 AND PROBLEMS THAT INVESTORS HAVE 317 00:11:08,001 --> 00:11:09,000 WITH FINANCIAL SERVICE PROVIDERS 318 00:11:09,001 --> 00:11:13,000 AND INVESTMENT PRODUCTS. 319 00:11:13,001 --> 00:11:15,000 I ALSO WORKED TO INCLUDE IN THE 320 00:11:15,001 --> 00:11:18,000 LEGIATION CLARIFYING AUTHORITY 321 00:11:18,001 --> 00:11:20,000 FOR THE S.E.C. TO EFFECTIVELY 322 00:11:20,001 --> 00:11:24,000 REQUIRE DISCLOSURES PRIOR TO THE 323 00:11:24,001 --> 00:11:27,000 SALE OF FINANCIAL PRODUCTS AND SERVICES. 324 00:11:27,001 --> 00:11:30,000 WORKING FAMILIES RELY ON THEIR 325 00:11:30,001 --> 00:11:32,000 MUTUAL FUND INVESTMENTS AND 326 00:11:32,001 --> 00:11:34,000 OTHER FINANCIAL PRODUCTS TO PAY 327 00:11:34,001 --> 00:11:37,000 FOR THEIR CHILDREN'S EDUCATION, 328 00:11:37,001 --> 00:11:39,000 TO PREPARE FOR RETIREMENT AND BE 329 00:11:39,001 --> 00:11:41,000 BETTER ABLE TO ATTAIN OTHER 330 00:11:41,001 --> 00:11:43,000 FINANCIAL GOALS. 331 00:11:43,001 --> 00:11:44,000 THIS PROVISION WILL ENSURE THAT 332 00:11:44,001 --> 00:11:46,000 WORKING FAMILIES HAVE THE 333 00:11:46,001 --> 00:11:49,000 RELEVANT AND USEFUL INFORMATION 334 00:11:49,001 --> 00:11:52,000 THEY NEED WHEN THEY ARE MAKING 335 00:11:52,001 --> 00:11:57,000 DECISIONS THAT DETERMINE THEIR 336 00:11:57,001 --> 00:11:58,000 FINANCIAL FUTURE. 337 00:11:58,001 --> 00:11:59,000 UNFORTUNATELY, TOO MANY 338 00:11:59,001 --> 00:12:01,000 INVESTORS DO NOT KNOW THE 339 00:12:01,001 --> 00:12:03,000 DIFFERENCE BETWE A BROKER AND 340 00:12:03,001 --> 00:12:05,000 AN INVESTMENT ADVISOR. 341 00:12:05,001 --> 00:12:09,000 EN FEWER ARE LIKELY TO KNOW 342 00:12:09,001 --> 00:12:12,000 THAT THEIR BROKER HAS NO 343 00:12:12,001 --> 00:12:17,000 OBLIGATION TO ACT IN THEIR BEST INTERESTS. 344 00:12:17,001 --> 00:12:20,000 INVESTMENT ADVISORS CURRENTLY 345 00:12:20,001 --> 00:12:22,000 HAVE FIDUCIARY OBLIGATIONS. 346 00:12:22,001 --> 00:12:24,000 HOWEVER, BROKERS MUST ONLY MEET 347 00:12:24,001 --> 00:12:29,000 A SUITABILITY STANDARD THAT 348 00:12:29,001 --> 00:12:31,000 FAILS TO SUFFICIENTLY PROTECT INVESTORS. 349 00:12:31,001 --> 00:12:33,000 IN A COMPLICATED FINANCIAL 350 00:12:33,001 --> 00:12:35,000 MARKETPLACE FOR INVESTORS IN 351 00:12:35,001 --> 00:12:38,000 WHICH REVENUE-SHARING AGREEMENTS 352 00:12:38,001 --> 00:12:40,000 AND COMMISSIONS CAN VARY 353 00:12:40,001 --> 00:12:43,000 SIGNIFICANTLY FOR SIMILAR 354 00:12:43,001 --> 00:12:45,000 PRODUCTS, WE MUST ENJOY THAT ALL 355 00:12:45,001 --> 00:12:48,000 INSTMENT PROFESSIONALS THAT 356 00:12:48,001 --> 00:12:51,000 OFFER PERSONALIZED INVESTMT 357 00:12:51,001 --> 00:12:54,000 ADVICE HAVE A FIDUCIARY DUTY 358 00:12:54,001 --> 00:12:57,000 IMPOSED ON THEM. 359 00:12:57,001 --> 00:13:00,000 IN 2005, I FIRST INTRODUCED 360 00:13:00,001 --> 00:13:04,000 LEGISLATION THAT WOULD HAVE 361 00:13:04,001 --> 00:13:07,000 IMPOSED A FIDUCIARY DUTY ON BROKERS. 362 00:13:07,001 --> 00:13:09,000 AFTER YEARS OF EFFORT, THIS 363 00:13:09,001 --> 00:13:11,000 FINAL INVESTMENT PROTECTION WAS 364 00:13:11,001 --> 00:13:16,000 INCLUDED IN THE CONFERENCE REPORT. 365 00:13:16,001 --> 00:13:18,000 IT WILL ENSURE THAT A FIDUCIARY 366 00:13:18,001 --> 00:13:21,000 DUTY IS IMPOSED ON BROKERS WHEN 367 00:13:21,001 --> 00:13:22,000 GIVING PERSONALIZED INVESTMENT ADVICE. 368 00:13:22,001 --> 00:13:23,000 THIS WILL ENSURE THAT ALL 369 00:13:23,001 --> 00:13:25,000 FINANCIAL PROFESSIONALS, WHETHER 370 00:13:25,001 --> 00:13:29,000 THEY ARE AN INVESTMENT ADVISOR 371 00:13:29,001 --> 00:13:32,000 OR A BROKER, HAVE THE SAME DUTY 372 00:13:32,001 --> 00:13:33,000 TO ACT IN THE BEST INTERESTS OF 373 00:13:33,001 --> 00:13:37,000 THEIR CLIENTS. 374 00:13:37,001 --> 00:13:39,000 MADAM PRESIDENT, TITLE 12, THE 375 00:13:39,001 --> 00:13:42,000 IMPROVING ACCESS TO MAINSTREAM 376 00:13:42,001 --> 00:13:44,000 FINANCIAL INSTITUTIONS ACT, IS 377 00:13:44,001 --> 00:13:47,000 THE MOST IMPORTANT ECONOMIC 378 00:13:47,001 --> 00:13:51,000 EMPOWERMENT PROVISION IN THE BILL. 379 00:13:51,001 --> 00:13:54,000 I APPRECIATE THE WORK DONE BY 380 00:13:54,001 --> 00:13:55,000 SENATOR KOHL FOR ALL OF HIS WORK 381 00:13:55,001 --> 00:14:00,000 ON TITLE 12. 382 00:14:00,001 --> 00:14:05,000 MADAM PRESIDENT I GREW UP IN A 383 00:14:05,001 --> 00:14:09,000 FAMILY THAT DID NOT HAVE A BANK ACCOUNT. 384 00:14:09,001 --> 00:14:12,000 MY PARENTS KEPT THEIR MONEY IN A 385 00:14:12,001 --> 00:14:14,000 BOX, DIVIDED INTO DIFFERENT 386 00:14:14,001 --> 00:14:18,000 SECTIONS SO THAT MONEY COULD BE 387 00:14:18,001 --> 00:14:19,000 SEPARATED BY VARIOUS PURPOSES. 388 00:14:19,001 --> 00:14:20,000 CHURCH DONATIONS WERE KEPT IN 389 00:14:20,001 --> 00:14:22,000 ONE PART. 390 00:14:22,001 --> 00:14:25,000 THERE WAS A PORTION OF THE BOX 391 00:14:25,001 --> 00:14:27,000 RESERVED FOR FOOD EXPENSES. 392 00:14:27,001 --> 00:14:31,000 WHEN THERE WAS NO LONGER ANY 393 00:14:31,001 --> 00:14:33,000 FOOD MONEY, WE DID NOT EAT. 394 00:14:33,001 --> 00:14:35,000 OBVIOUSLY, MONEY IN THE BOX WAS 395 00:14:35,001 --> 00:14:38,000 NOT EARNING INTEREST. 396 00:14:38,001 --> 00:14:42,000 IT WAS NOT SECURE. 397 00:14:42,001 --> 00:14:43,000 I KNOW PERSONALLY THAT THE 398 00:14:43,001 --> 00:14:45,000 CHALLENGES THAT ARE PRESENTED TO 399 00:14:45,001 --> 00:14:48,000 FAMILIES UNABLE TO SAVE OR 400 00:14:48,001 --> 00:14:51,000 BORROW WHEN THEY NEED SMALL 401 00:14:51,001 --> 00:14:53,000 LOANS TO PAY FOR UNEXPECTED 402 00:14:53,001 --> 00:14:56,000 EXPENSES. 403 00:14:56,001 --> 00:14:57,000 UNEXPECTED MEDICAL EXPENSES OR A 404 00:14:57,001 --> 00:15:00,000 CAR REPAIR BILL MAY REQUIRE 405 00:15:00,001 --> 00:15:02,000 SMALL LOANS TO HELP WORKING 406 00:15:02,001 --> 00:15:05,000 FAMILIES OVERCOME THESE 407 00:15:05,001 --> 00:15:07,000 OBSTACLES. MAINSTREAM FINANCIAL 408 00:15:07,001 --> 00:15:09,000 INSTITUTIONS ARE A VITAL 409 00:15:09,001 --> 00:15:12,000 COMPONENT TO ECONOMIC 410 00:15:12,001 --> 00:15:15,000 EMPOWERMENT. 411 00:15:15,001 --> 00:15:17,000 UNBANKED OR UNDERBANKED FAMILIES 412 00:15:17,001 --> 00:15:18,000 NEED ACCESS TO CREATE -- TO 413 00:15:18,001 --> 00:15:22,000 CREDIT UNIONS AND BANKS AND THEY 414 00:15:22,001 --> 00:15:23,000 NEED TO BE ABLE TO BORROW ON 415 00:15:23,001 --> 00:15:26,000 AFFORDABLE TERMS. 416 00:15:26,001 --> 00:15:28,000 BANKS AND CREDIT UNIONS PROVIDE 417 00:15:28,001 --> 00:15:30,000 ALTERNATIVES TO HIGH-COST AND 418 00:15:30,001 --> 00:15:33,000 OFTEN PREDATORY FRINGE FINANCIAL 419 00:15:33,001 --> 00:15:36,000 SERVICE PROVIDERS, SUCH AS CHECK 420 00:15:36,001 --> 00:15:38,000 CASHERS AND PAYDAY LENDERS. 421 00:15:38,001 --> 00:15:41,000 MANY OF THE UNBANKED AND 422 00:15:41,001 --> 00:15:42,000 UNDERBANKED ARE LOW- AND 423 00:15:42,001 --> 00:15:44,000 MODERATE-INCOME FAMILIES THAT 424 00:15:44,001 --> 00:15:46,000 CANNOT AFFORD TO HAVE THEIR 425 00:15:46,001 --> 00:15:50,000 EARNINGS DIMINISHED BY RELIANCE 426 00:15:50,001 --> 00:15:53,000 ON TSE HIGH-COST AND OFTEN 427 00:15:53,001 --> 00:15:55,000 PREDATORY FINANCIAL SERVICES. 428 00:15:55,001 --> 00:15:57,000 UNBANKED FAMILIES ARE UNABLE TO 429 00:15:57,001 --> 00:15:58,000 SAVE SECURELY FOR EDUCATION 430 00:15:58,001 --> 00:16:01,000 EXPENSES. 431 00:16:01,001 --> 00:16:06,000 A DOWN PAYMENT ON A FIRST HOME 432 00:16:06,001 --> 00:16:07,000 OR OTHER FUTURE FINANCIAL NEEDS. 433 00:16:07,001 --> 00:16:09,000 UNDERBANKED CONSUMERS RELY ON 434 00:16:09,001 --> 00:16:13,000 NONTRADITIONAL FORMS OF CREDIT 435 00:16:13,001 --> 00:16:14,000 THAT OFTEN HAVE EXTRAORDINARY 436 00:16:14,001 --> 00:16:16,000 HIGH INTEREST RATES. 437 00:16:16,001 --> 00:16:20,000 REGULAR CHECKING ACCNTS MAY BE 438 00:16:20,001 --> 00:16:22,000 TOO EXPENSIVE FOR SOME CONSUMERS 439 00:16:22,001 --> 00:16:24,000 WHO ARE UNABLE TO MAINTAIN 440 00:16:24,001 --> 00:16:25,000 MINIMUM BALANCES OR AFFORD THE 441 00:16:25,001 --> 00:16:26,000 MONTHLY FEES. 442 00:16:26,001 --> 00:16:28,000 CULTURAL DIFFERENCES AND 443 00:16:28,001 --> 00:16:31,000 LANGUAGE BARRIERS ALSO PRESENT 444 00:16:31,001 --> 00:16:34,000 CHALLENGES THAT CAN HDER THE 445 00:16:34,001 --> 00:16:37,000 ABILITY OF CONSUMERS TO ACCESS 446 00:16:37,001 --> 00:16:42,000 FINANCIAL SERVICES. 447 00:16:42,001 --> 00:16:46,000 TITLE 12 AUTHORIZES PROGRAMS TO 448 00:16:46,001 --> 00:16:47,000 ASSIST LOW- AND MODERATE-INCOME 449 00:16:47,001 --> 00:16:48,000 INDIVIDUALS ESTABLISH BANK OR 450 00:16:48,001 --> 00:16:49,000 CREDIT UNION ACCOUNTS AND 451 00:16:49,001 --> 00:16:54,000 ENCOURAGE GREATER USE OF 452 00:16:54,001 --> 00:16:56,000 MAINSTRE FINANCIAL SERVICE. 453 00:16:56,001 --> 00:16:59,000 I ALSO -- IT ALSO ENCOURAGES 454 00:16:59,001 --> 00:17:00,000 BANKS AND CREDIT UNIONS TO 455 00:17:00,001 --> 00:17:03,000 DEVELOP CONSUMER-FRIENDLY PAYDAY 456 00:17:03,001 --> 00:17:04,000 LOAN ALTERNATIVES. 457 00:17:04,001 --> 00:17:06,000 CONSUMERS WHO APPLY FOR THESE 458 00:17:06,001 --> 00:17:08,000 LOANS WOULD BE PROVIDED WITH 459 00:17:08,001 --> 00:17:11,000 FINANCIAL LITERACY AND 460 00:17:11,001 --> 00:17:13,000 EDUCATIONAL OPPORTUNITY. 461 00:17:13,001 --> 00:17:18,000 IN CONCLUSION, MADAM PRESIDENT, 462 00:17:18,001 --> 00:17:19,000 THIS BILL WILL IMPROVE THE LIVES 463 00:17:19,001 --> 00:17:22,000 OF WORKING FAMILIES IN OUR 464 00:17:22,001 --> 00:17:25,000 COUNTRY BECAUSE IT WILL EDUCATE, 465 00:17:25,001 --> 00:17:26,000 PROTECT, AND EMPOWER CONSUMERS 466 00:17:26,001 --> 00:17:46,000 AND INVESTORS. 467 00:17:46,001 --> 00:17:47,000 THANK YOU, MADAM PRESIDENT. 468 00:17:47,001 --> 00:17:48,000 A SENATOR: MADAM PRESIDENT? THE PRESIDING OFFICER: THE 469 00:17:48,001 --> 00:17:49,000 SENATOR FROM MARYLAND. MR. CARDIN: THANK YOU, 470 00:17:49,001 --> 00:17:52,000 MADAM PRESIDENT. 471 00:17:52,001 --> 00:17:54,000 I TAKE THIS TIME TO URGE MY 472 00:17:54,001 --> 00:17:57,000 COLLEAGUES TO VOTE FOR CLOTURE 473 00:17:57,001 --> 00:17:58,000 ON THE DODD-FRANK WALL STREET 474 00:17:58,001 --> 00:18:01,000 REFORM AND CONSUMER PROTECTION 475 00:18:01,001 --> 00:18:02,000 ACT AND TO VOTE FOR FINAL 476 00:18:02,001 --> 00:18:04,000 PASSAGE. 477 00:18:04,001 --> 00:18:06,000 FIRST, I WANT TO CONGRATULATE 478 00:18:06,001 --> 00:18:10,000 SENATOR DODD FOR THE LEADERSHIP 479 00:18:10,001 --> 00:18:11,000 THAT HE HAS SHOWN IN MARSHALING 480 00:18:11,001 --> 00:18:12,000 THIS LEGISLATION THROUGH SOME 481 00:18:12,001 --> 00:18:14,000 VERY DIFFICULT CHALLENGES HERE 482 00:18:14,001 --> 00:18:16,000 IN THE UNITED STATES CONGRESS. 483 00:18:16,001 --> 00:18:18,000 GETTING IT THROUGH THE SENATE 484 00:18:18,001 --> 00:18:19,000 FLOOR, WORKING OUT THE 485 00:18:19,001 --> 00:18:20,000 DIFFERENCES BETWEEN THE HOUSE 486 00:18:20,001 --> 00:18:24,000 AND SENATE SO THAT WE NOW ARE ON 487 00:18:24,001 --> 00:18:27,000 THE VERGE OF PASSING THE MOST 488 00:18:27,001 --> 00:18:29,000 SIGNIFICANT REFORM IN WALL 489 00:18:29,001 --> 00:18:31,000 STREET IN MANY, MANY YEARS. 490 00:18:31,001 --> 00:18:33,000 THIS BILL CORRECTS A REGULATORY 491 00:18:33,001 --> 00:18:38,000 STRUCTURE THAT TODAY ALLOWS 492 00:18:38,001 --> 00:18:41,000 RECKLESS GAMBLING ON WAL 493 00:18:41,001 --> 00:18:42,000 STREET, THAT CREATES THE 494 00:18:42,001 --> 00:18:43,000 TOO-BIG-TO-FAIL, WHERE 495 00:18:43,001 --> 00:18:44,000 GOVERNMENT BAILOUTS ARE 496 00:18:44,001 --> 00:18:46,000 NECESSARY TO KEEP COMPANIES 497 00:18:46,001 --> 00:18:48,000 AFLOAT BECAUSE THERE'S NO OTHER 498 00:18:48,001 --> 00:18:50,000 OPTIONS AVAILABLE TO OUR REGULATORS. 499 00:18:50,001 --> 00:18:52,000 IT ENDS RECKLESS GUAM BLOING 500 00:18:52,001 --> 00:18:54,000 WALL STREET -- 501 00:18:54,001 --> 00:18:57,000 IT ENDS RECKLESS GAMBLING ON 502 00:18:57,001 --> 00:19:00,000 WALL STREET, IT ENDS THE GOVERNMENT BAILOUTS OF 503 00:19:00,001 --> 00:19:03,000 INSTITUTIONS THAT ARE TOO BIG TO FAIL. 504 00:19:03,001 --> 00:19:04,000 IT PROVIDES FOR STRONG CONSUMER 505 00:19:04,001 --> 00:19:06,000 PROTECTION, PROTECTION FOR ALL 506 00:19:06,001 --> 00:19:08,000 FORMS OF -- MANY FORMS OF 507 00:19:08,001 --> 00:19:09,000 LENDING BUT, MOST IMPORTANTLY, 508 00:19:09,001 --> 00:19:12,000 THE RESIDENTIAL MORTGAGE MARKET. 509 00:19:12,001 --> 00:19:15,000 WE SAW IN THIS FINANCIAL CRISIS 510 00:19:15,001 --> 00:19:16,000 THAT EVEN RESPONSIBLE CONSUMERS 511 00:19:16,001 --> 00:19:18,000 SUFFERED AT THE HANDS OF 512 00:19:18,001 --> 00:19:19,000 AGGRESSIVE LENDERS WITH DUBIOUS 513 00:19:19,001 --> 00:19:23,000 INTENTIONS. 514 00:19:23,001 --> 00:19:24,000 THIS LEGISLATION WILL CREATE AN 515 00:19:24,001 --> 00:19:27,000 ECONOMIC -- A CONSUMER BUREAU 516 00:19:27,001 --> 00:19:30,000 THAT WILL END THOSE TYPES OF PRACTICES. 517 00:19:30,001 --> 00:19:32,000 THAT WILL BE ON THE SIDE OF THE 518 00:19:32,001 --> 00:19:33,000 CONSUMER. 519 00:19:33,001 --> 00:19:35,000 THAT'S INDEPENDENT SO THE 520 00:19:35,001 --> 00:19:36,000 CONSUMER IS REPRESENTED IN THE 521 00:19:36,001 --> 00:19:39,000 FINANCIAL STRUCTURE. 522 00:19:39,001 --> 00:19:41,000 I WANT TO HIGHLIGHT SOME 523 00:19:41,001 --> 00:19:42,000 PROVISIONS THAT WERE INCLUDED IN 524 00:19:42,001 --> 00:19:45,000 THIS LEGISLATION THAT I WORKED 525 00:19:45,001 --> 00:19:47,000 ON WITH OUR COLLEAGUES TO GET 526 00:19:47,001 --> 00:19:48,000 INCLUDED IN THE BILL, AND I'M 527 00:19:48,001 --> 00:19:49,000 VERY GRATEFUL FOR SENATOR DODD 528 00:19:49,001 --> 00:19:53,000 AND THE LEADERSHIP ON THE 529 00:19:53,001 --> 00:19:55,000 BANKING COMMITTEE AND THE -- OUR 530 00:19:55,001 --> 00:19:57,000 REPRESENTATIVES IN CONFERENCE 531 00:19:57,001 --> 00:20:00,000 THAT WERE ABLE TO INCLUDE 532 00:20:00,001 --> 00:20:02,000 PROVISIONS THAT I THINK ADD TO 533 00:20:02,001 --> 00:20:03,000 THE IMPORTANCE OF THIS BILL. 534 00:20:03,001 --> 00:20:06,000 THE FIRST PROVISION I WANT TO 535 00:20:06,001 --> 00:20:07,000 TALK ABOUT IS A PROVISION I 536 00:20:07,001 --> 00:20:10,000 WORKED WITH, WITH SENATOR ENZI 537 00:20:10,001 --> 00:20:11,000 AND SENATOR BROWNBACK THAT WILL 538 00:20:11,001 --> 00:20:13,000 MAKE PERMANENT THE FEDERALLY 539 00:20:13,001 --> 00:20:16,000 INSURED DEPOSIT LIMITS FROM 540 00:20:16,001 --> 00:20:20,000 $100,000 TO $250,000. 541 00:20:20,001 --> 00:20:23,000 WE DID THAT RECENTLY IN ORDER TO 542 00:20:23,001 --> 00:20:24,000 ENCOURAGE MORE DEPOSITS, TO HELP 543 00:20:24,001 --> 00:20:25,000 OUR ECONOMY, TO PROVIDE CAPITAL 544 00:20:25,001 --> 00:20:26,000 FOR BUSINESSES. 545 00:20:26,001 --> 00:20:28,000 AND THIS LIMIT INCLUDED IN THIS 546 00:20:28,001 --> 00:20:31,000 BILL IS NOW MADE PERMANENT AT 547 00:20:31,001 --> 00:20:32,000 $250,000. 548 00:20:32,001 --> 00:20:34,000 INSURED DEPOSITS ARE THE 549 00:20:34,001 --> 00:20:35,000 STABILIZING FORCE FOR OUR 550 00:20:35,001 --> 00:20:37,000 NATION'S BANKING SYSTEM FOR THE 551 00:20:37,001 --> 00:20:41,000 PAST 75 YEARS. 552 00:20:41,001 --> 00:20:43,000 IT PROMOTES THE CONFIDENCE, 553 00:20:43,001 --> 00:20:45,000 PUBLIC CONFIDENCE IN OUR BANKING 554 00:20:45,001 --> 00:20:46,000 SYSTEM AND IT PREVENTS BANK 555 00:20:46,001 --> 00:20:47,000 RUNS. 556 00:20:47,001 --> 00:20:49,000 IT'S PARTICULARLY IMPORTANT TO COMMUNITY BANKS. 557 00:20:49,001 --> 00:20:51,000 I KNOW MANY OF US TALK ABOUT 558 00:20:51,001 --> 00:20:52,000 WHAT WE CAN DO TO HELP OUR SMALL 559 00:20:52,001 --> 00:20:55,000 BUSINESSES, HOW CAN WE FREE UP 560 00:20:55,001 --> 00:20:56,000 MORE CREDIT TO GET SMALL 561 00:20:56,001 --> 00:20:58,000 BUSINESSES THE LOANS THEY NEED 562 00:20:58,001 --> 00:21:01,000 IN ORDER TO CREATE THE JOBS THAT 563 00:21:01,001 --> 00:21:04,000 ARE NEEDED FOR OUR ECONOMY. AND WE ALL KNOW THAT COMMUNITY 564 00:21:04,001 --> 00:21:06,000 BANKS ARE THE MOST STABLE SOURCE 565 00:21:06,001 --> 00:21:09,000 OF FUNDS FOR INVESTMENTS IN OUR 566 00:21:09,001 --> 00:21:11,000 COMMUNITY AND SMALL BUSINESSES. 567 00:21:11,001 --> 00:21:13,000 WELL, SMALL -- COMMUNITY BANKS 568 00:21:13,001 --> 00:21:14,000 RELY MORE ON INSURED DEPOSITS 569 00:21:14,001 --> 00:21:17,000 THAN LARGE BANKS. 570 00:21:17,001 --> 00:21:18,000 85% TO 90% OF THE FUNDS THAT 571 00:21:18,001 --> 00:21:21,000 COMMUNITY BANKS HAVE ARE 572 00:21:21,001 --> 00:21:23,000 INCLUDED IN INSURED DEPOSITS. 573 00:21:23,001 --> 00:21:27,000 SO THIS AMENDMENT THAT WILL MAKE 574 00:21:27,001 --> 00:21:30,000 PERMANENT THE $250,000 LIMIT 575 00:21:30,001 --> 00:21:32,000 WILL HELP PROVIDE A MORE STEADY 576 00:21:32,001 --> 00:21:35,000 SOURCE OF FUNDS FOR OUR 577 00:21:35,001 --> 00:21:39,000 COMMUNITY BANKS THAT WILL ALLOW 578 00:21:39,001 --> 00:21:40,000 THEM TO BE ABLE TO INVEST IN OUR COMMUNITY. 579 00:21:40,001 --> 00:21:44,000 ANOTHER PROVISION THAT WAS 580 00:21:44,001 --> 00:21:46,000 INCLUDED IN THIS CONFERENCE 581 00:21:46,001 --> 00:21:47,000 PORT IS ONE THAT I WORKED 582 00:21:47,001 --> 00:21:48,000 WITH, WITH MY COLLEAGUE FROM 583 00:21:48,001 --> 00:21:49,000 MARYLAND, SENATOR MIKULSKI, 584 00:21:49,001 --> 00:21:53,000 DEALING WITH THE ENHANCED 585 00:21:53,001 --> 00:21:54,000 SUPERVISIONS FOR NON-BANK FINANCIAL COMPANIES. 586 00:21:54,001 --> 00:21:56,000 WHAT WE'RE TALKING ABOUT HERE 587 00:21:56,001 --> 00:21:57,000 ARE MUTUAL FUNDS AND THEIR 588 00:21:57,001 --> 00:21:59,000 ADVISORS TO MAKE SURE THEY'RE 589 00:21:59,001 --> 00:22:00,000 NOT INADVERTENTLY SUBJECT TO 590 00:22:00,001 --> 00:22:01,000 UNWORKABLE STANDARDS. 591 00:22:01,001 --> 00:22:04,000 HERE WE'RE TALKING ABOUT 592 00:22:04,001 --> 00:22:05,000 PROMOTING FUNDS NESSARY FOR 593 00:22:05,001 --> 00:22:06,000 VENTURE CAPITAL AND EQUITY 594 00:22:06,001 --> 00:22:09,000 INVESTMENTS IN OUR COMMUNITY TO 595 00:22:09,001 --> 00:22:10,000 MAKE SURE THERE'S A DIFFERENCE 596 00:22:10,001 --> 00:22:12,000 BETWEEN THE TYPE OF ACTIVITIES 597 00:22:12,001 --> 00:22:14,000 OF MUTUAL FUND OPERATORS THAT 598 00:22:14,001 --> 00:22:16,000 RELY PRIMARILY ON RISK 599 00:22:16,001 --> 00:22:18,000 INVESTMENT AND THOSE THAT ARE -- 600 00:22:18,001 --> 00:22:19,000 ARE PRIMARILY INVOLVED IN 601 00:22:19,001 --> 00:22:21,000 INSURED DEPOSITS. 602 00:22:21,001 --> 00:22:22,000 AND I APPRECIATE THE COMMITTEE 603 00:22:22,001 --> 00:22:24,000 AND THE CONFERENCE REPORT 604 00:22:24,001 --> 00:22:27,000 CLARIFYING THAT PROVISION THAT 605 00:22:27,001 --> 00:22:28,000 SENATOR MIKULSKI AND I 606 00:22:28,001 --> 00:22:29,000 ENCOURAGED THEM TO DO. 607 00:22:29,001 --> 00:22:30,000 ANOTHER PROVISION I WANT TO TALK 608 00:22:30,001 --> 00:22:31,000 ABOUT VERY BRIEFLY, I WORKED 609 00:22:31,001 --> 00:22:33,000 WITH SENATOR GRASSLEY DEALING 610 00:22:33,001 --> 00:22:35,000 WITH THE WHISTLE-BLOWER 611 00:22:35,001 --> 00:22:39,000 PROTECTIONS WITH THE NATIONALLY 612 00:22:39,001 --> 00:22:41,000 RECOGNIZED STATISTICAL RATING 613 00:22:41,001 --> 00:22:42,000 ORGANIZATION NRSRO'S, AS THEY'RE 614 00:22:42,001 --> 00:22:44,000 KNOWN, BUT I THINK MOST PEOPLE 615 00:22:44,001 --> 00:22:45,000 IN OUR COUNTRY KNOW THEM AS 616 00:22:45,001 --> 00:22:48,000 CREDIT RATING AGENCIES. 617 00:22:48,001 --> 00:22:50,000 THESE ARE THE MOODY'S AND STANDARD & POOR'S. 618 00:22:50,001 --> 00:22:52,000 THERE ARE ABOUT TEN IN OUR 619 00:22:52,001 --> 00:22:56,000 COUNTRY THAT ARE SUPPOSED TO DO 620 00:22:56,001 --> 00:22:57,000 INDEPENDENT CREDIT RATINGS FOR SECURITIES. 621 00:22:57,001 --> 00:23:00,000 AND AS I'M SURE MANY PEOPLE ARE 622 00:23:00,001 --> 00:23:03,000 NOW AWARE, THIS WOULD -- THEY 623 00:23:03,001 --> 00:23:05,000 PLAYED A SIGNIFICANT ROLE IN THE 624 00:23:05,001 --> 00:23:09,000 UNREALISTIC CONFIDENCE IN 625 00:23:09,001 --> 00:23:11,000 SECURITIES DURING OUR RECENT 626 00:23:11,001 --> 00:23:12,000 ECONOMIC DOWNTURN. 627 00:23:12,001 --> 00:23:15,000 WE WANT TO MAKE SURE THAT OUR 628 00:23:15,001 --> 00:23:17,000 CREDIT AGENCIES IN FACT CARRY 629 00:23:17,001 --> 00:23:21,000 OUT THE RESPONSIBILITIES THEY'RE 630 00:23:21,001 --> 00:23:23,000 SUPPOSED TO AS INDEPENDENT 631 00:23:23,001 --> 00:23:24,000 EVALUATORS. 632 00:23:24,001 --> 00:23:26,000 BUT COMPETITION PRESSURE AND 633 00:23:26,001 --> 00:23:27,000 INHERENT CONFLICTS HAVE MADE 634 00:23:27,001 --> 00:23:28,000 THAT UNCERTAIN. 635 00:23:28,001 --> 00:23:30,000 THE WHISTLE-BLOWER PROTECTIONS 636 00:23:30,001 --> 00:23:33,000 THAT ARE EXTENDED IN THIS 637 00:23:33,001 --> 00:23:35,000 LEGISLATION ALLOWS -- ALLOW 638 00:23:35,001 --> 00:23:37,000 EMPLOYEES TO COME FORWARD WITH 639 00:23:37,001 --> 00:23:39,000 INFORMATION WITHOUT FEAR OF 640 00:23:39,001 --> 00:23:41,000 RETRIBUTION BY THEIR EMPLOYER. 641 00:23:41,001 --> 00:23:43,000 IT'S VERY IMPORTANT PROVISION 642 00:23:43,001 --> 00:23:45,000 AND I'M GLAD THAT IT WAS 643 00:23:45,001 --> 00:23:46,000 INCLUDED IN THE FINANCIAL 644 00:23:46,001 --> 00:23:48,000 LEGISLATION. 645 00:23:48,001 --> 00:23:50,000 AND LASTLY, LET ME TALK ABOUT 646 00:23:50,001 --> 00:23:51,000 THE EXTRACTIVE INDUSTRIES 647 00:23:51,001 --> 00:23:53,000 TRANSPARENCY INITIATIVE, AN 648 00:23:53,001 --> 00:23:55,000 AMENDMENT THAT SENATOR LUGAR AND 649 00:23:55,001 --> 00:23:57,000 I WORKED VERY HARD ON THAT'S 650 00:23:57,001 --> 00:23:58,000 INCLUDED IN THE FINAL CONFERENCE 651 00:23:58,001 --> 00:23:59,000 REPORT. 652 00:23:59,001 --> 00:24:00,000 I'VE SPOKEN ON THE FLOOR 653 00:24:00,001 --> 00:24:02,000 PREVIOUSLY ABOUT THIS PROVISION 654 00:24:02,001 --> 00:24:04,000 AND I PARTICULARLY WANT TO THANK 655 00:24:04,001 --> 00:24:05,000 SENATOR LEAHY FOR -- FOR HIS 656 00:24:05,001 --> 00:24:07,000 LEADERSHIP IN THE CONFERENCE ON 657 00:24:07,001 --> 00:24:09,000 THIS ISSUE AND SENATOR DODD FOR 658 00:24:09,001 --> 00:24:11,000 HIS HELP IN GETTING IT INCLUDED 659 00:24:11,001 --> 00:24:14,000 IN THE FINAL CONFERENCE REPORT. 660 00:24:14,001 --> 00:24:16,000 OIL, GAS AND MINING COMPANIES 661 00:24:16,001 --> 00:24:19,000 WILL BE REQUIRED UNDER THIS 662 00:24:19,001 --> 00:24:20,000 LEGISLATION TO DISCLOSE THEIR 663 00:24:20,001 --> 00:24:22,000 PAYMENTS TO GOVERNMENTS FOR 664 00:24:22,001 --> 00:24:25,000 ACCESS TO OIL, GAS OR MINERALS 665 00:24:25,001 --> 00:24:28,000 TO BE LISTED ON THE UNITED 666 00:24:28,001 --> 00:24:29,000 STATES S.E.C., TO BE REGISTERED 667 00:24:29,001 --> 00:24:31,000 WITH THE SECURITIES AND EXCHANGE 668 00:24:31,001 --> 00:24:32,000 COMMISSION. 669 00:24:32,001 --> 00:24:34,000 NOW, MANY OF THESE OIL COMPANIES 670 00:24:34,001 --> 00:24:36,000 OR GAS COMPANIES OR MINERAL 671 00:24:36,001 --> 00:24:39,000 COMPANIES OPERATE IN COUNTRIES 672 00:24:39,001 --> 00:24:41,000 THAT ARE AUTOCRATIC, UNSTABLE OR 673 00:24:41,001 --> 00:24:43,000 BOTH AND THEY HAVE TO PAY 674 00:24:43,001 --> 00:24:45,000 PAYMENTS TO THOSE COUNTRIES IN 675 00:24:45,001 --> 00:24:48,000 ORDER TO BE ABLE TO GET ACCESS 676 00:24:48,001 --> 00:24:49,000 TO THOSE MINERAL RIGHTS. 677 00:24:49,001 --> 00:24:52,000 THIS LEGISLATION, THE AMENDMENT 678 00:24:52,001 --> 00:24:54,000 THAT'S INCLUDED IN THIS BILL, 679 00:24:54,001 --> 00:24:55,000 WILL REQUIRE PUBLIC DISCLOSURE 680 00:24:55,001 --> 00:24:57,000 OF THOSE PAYMENTS. 681 00:24:57,001 --> 00:24:59,000 NOW, WHY IS THAT SO IMPORTANT 682 00:24:59,001 --> 00:25:01,000 AND WHY WAS IT INCLUDED IN THE 683 00:25:01,001 --> 00:25:05,000 FINAL CONFERENCE REPORT? 684 00:25:05,001 --> 00:25:09,000 FIRST, TRANSPARENCY ENCOURAGES 685 00:25:09,001 --> 00:25:10,000 AND PROVIDES FOR MORE STABLE 686 00:25:10,001 --> 00:25:11,000 GOVERNMENTS. 687 00:25:11,001 --> 00:25:13,000 AND WE RELY ON THESE ENERGY 688 00:25:13,001 --> 00:25:15,000 SOURCES OR MINERAL SUPPLIES IN 689 00:25:15,001 --> 00:25:17,000 COUNTIES THAT ARE QUESTIONABLE 690 00:25:17,001 --> 00:25:18,000 AS FAR AS THEIR STABILITY. 691 00:25:18,001 --> 00:25:21,000 IF THIS DISCLOSURE WILL HELP 692 00:25:21,001 --> 00:25:23,000 MAKE THOSE COUNTRIES MOR 693 00:25:23,001 --> 00:25:25,000 STABLE, IT PROVIDES SECURITY FOR 694 00:25:25,001 --> 00:25:26,000 THE UNITED STATES IN THEIR 695 00:25:26,001 --> 00:25:29,000 SUPPLY SOURCE, WHETHER IT'S AN 696 00:25:29,001 --> 00:25:30,000 ENERGY OR MINERAL SUPPLY SOURCE. 697 00:25:30,001 --> 00:25:32,000 SO THIS AMENDMENT THAT'S 698 00:25:32,001 --> 00:25:34,000 INCLUDED IN THE CONFERENCE 699 00:25:34,001 --> 00:25:39,000 REPORT WILL HELP WITH UNITED 700 00:25:39,001 --> 00:25:40,000 STATES ENERGY SECURITY. 701 00:25:40,001 --> 00:25:41,000 SECONDLY, INVESTORS HAVE A RIGHT TO KNOW. 702 00:25:41,001 --> 00:25:43,000 IF YOU'RE GOING TO INVEST IN AN 703 00:25:43,001 --> 00:25:44,000 OIL COMPANY, YOU HAVE A RIGHT TO 704 00:25:44,001 --> 00:25:45,000 KNOW WHERE THEY'RE DOING 705 00:25:45,001 --> 00:25:46,000 BUSINESS, WHERE THEY'RE MAKING 706 00:25:46,001 --> 00:25:48,000 PAYMENTS. 707 00:25:48,001 --> 00:25:49,000 THIS IS I WOULD THINK 708 00:25:49,001 --> 00:25:50,000 INFORMATION THAT MAY AFFECT YOUR 709 00:25:50,001 --> 00:25:52,000 DECISION AS TO WHETHER YOU WANT 710 00:25:52,001 --> 00:25:53,000 TO TAKE THIS RISK IN INVESTING 711 00:25:53,001 --> 00:25:56,000 IN THAT COMPANY. 712 00:25:56,001 --> 00:25:58,000 SO THIS AMENDMENT PROVIDES 713 00:25:58,001 --> 00:26:00,000 GREATER DISCLOSURE FOR INVESTORS 714 00:26:00,001 --> 00:26:01,000 TO BE ABLE TO MAKE INTELLIGENT 715 00:26:01,001 --> 00:26:04,000 DECISIONS AS TO WHETHER TO 716 00:26:04,001 --> 00:26:06,000 INVEST IN AN OIL OR GAS OR 717 00:26:06,001 --> 00:26:08,000 MINERAL COMPANY. 718 00:26:08,001 --> 00:26:09,000 THIRD, AS WE KNOW, WITH THE LACK 719 00:26:09,001 --> 00:26:14,000 OF TRANSPARENCY, THE PAYMENTS 720 00:26:14,001 --> 00:26:15,000 BECOME A SOURCE OF CORRUPTION 721 00:26:15,001 --> 00:26:19,000 FOR GOVERNMENT OFFICIALS IN MANY 722 00:26:19,001 --> 00:26:20,000 OF THESE RESOURCE-WEALTHY COUNTRIES. 723 00:26:20,001 --> 00:26:21,000 IT'S INTERESTING, 724 00:26:21,001 --> 00:26:24,000 MADAM PRESIDENT, IT'S KNOWN AS 725 00:26:24,001 --> 00:26:25,000 THE RESOURCE CURSE, NOT THE 726 00:26:25,001 --> 00:26:26,000 RESOURCE BLESSING, IN MANY 727 00:26:26,001 --> 00:26:27,000 COUNTRIES AROUND THE WORLD. 728 00:26:27,001 --> 00:26:30,000 IT'S INTERESTING THAT SOME OF 729 00:26:30,001 --> 00:26:32,000 OUR MOST WEALTHY MINERAL 730 00:26:32,001 --> 00:26:33,000 COMPANIES ARE THE POOREST 731 00:26:33,001 --> 00:26:34,000 COUNTRIES AS FAR AS THEIR PEOPLE 732 00:26:34,001 --> 00:26:37,000 IN THE WORLD. 733 00:26:37,001 --> 00:26:41,000 THE CITIZENS OF -- OF THESE 734 00:26:41,001 --> 00:26:43,000 COUNTRIES ARE ENTITLED TO HAVE 735 00:26:43,001 --> 00:26:46,000 THE -- THEIR MINERAL WEALTH BE 736 00:26:46,001 --> 00:26:51,000 USED TO ELEVATE THEIR PERSONAL STATUS. 737 00:26:51,001 --> 00:26:53,000 AND BY GIVING THE CITIZENS THE 738 00:26:53,001 --> 00:26:54,000 INFORMATION ABOUT HOW PAYMENTS 739 00:26:54,001 --> 00:26:55,000 ARE MADE TO THEIR COUNTRY, THEY 740 00:26:55,001 --> 00:26:57,000 HAVE A MUCH BETTER CHANCE TO 741 00:26:57,001 --> 00:26:59,000 HOLD THEIR GOVERNMENT OFFICIALS ACCOUNTABLE. 742 00:26:59,001 --> 00:27:02,000 SO, MADAM PRESIDENT, WE NOT ONLY 743 00:27:02,001 --> 00:27:04,000 ARE PROTECTING INVESTORS AND 744 00:27:04,001 --> 00:27:08,000 HELPING IN ENERGY SECURITY, WE'RE HELPING TO ALLEVIATE 745 00:27:08,001 --> 00:27:09,000 POVERTY INTERNATIONALLY BY 746 00:27:09,001 --> 00:27:11,000 ALLOWING THE PEOPLE OF THE 747 00:27:11,001 --> 00:27:13,000 COUNTRY THAT HAVE MINERAL WEALTH 748 00:27:13,001 --> 00:27:14,000 TO HOLD THEIR OFFICIALS 749 00:27:14,001 --> 00:27:16,000 ACCOUNTABLE TO USE THOSE FIEMENT 750 00:27:16,001 --> 00:27:18,000 HELP THE PEOPLE OF -- USE THOSE 751 00:27:18,001 --> 00:27:19,000 PAYMENTS TO HELP THE PEOPLE OF 752 00:27:19,001 --> 00:27:20,000 THAT NATION. 753 00:27:20,001 --> 00:27:22,000 THIS AMENDMENT HAS BEEN ENDORSED 754 00:27:22,001 --> 00:27:23,000 BY THE G-8, BY THE INTERNATIONAL 755 00:27:23,001 --> 00:27:24,000 MONETARY FUND, BY THE WORLD 756 00:27:24,001 --> 00:27:25,000 BANK. AND WITH T PASSAGE OF THIS 757 00:27:25,001 --> 00:27:29,000 CONFERENCE REPORT, THE UNITED 758 00:27:29,001 --> 00:27:31,000 STATES WILL BE THE LEADER 759 00:27:31,001 --> 00:27:33,000 INTERNATIONALLY ON EXTRACTIVE 760 00:27:33,001 --> 00:27:35,000 INDUSTRIES TRANSPARENCY, AND I 761 00:27:35,001 --> 00:27:38,000 THINK THAT'S A PROUD MOMENT NOT ONLY FOR THE UNITED STATES 762 00:27:38,001 --> 00:27:40,000 SENATE BUT FOR OUR NATION. 763 00:27:40,001 --> 00:27:41,000 THIS IS A GOOD BILL FOR MANY 764 00:27:41,001 --> 00:27:45,000 YEARS. 765 00:27:45,001 --> 00:27:46,000 IT'S WELL-ORGANIZED, COMMONSENSE 766 00:27:46,001 --> 00:27:47,000 REGULATORY STRUCTURE TO PROTECT 767 00:27:47,001 --> 00:27:49,000 OUR NATION FROM ANOTHER 768 00:27:49,001 --> 00:27:51,000 FINANCIAL CRISIS WITH STRONG 769 00:27:51,001 --> 00:27:54,000 INVESTOR AND CONSUMER 770 00:27:54,001 --> 00:27:55,000 PROTECTION, PLACING LIMITS ON 771 00:27:55,001 --> 00:27:57,000 INSTITUTIONS DEEMED TOO BIG TO 772 00:27:57,001 --> 00:27:58,000 FAIL, PROTECTING NOT ONLY 773 00:27:58,001 --> 00:27:59,000 INVESTORS AND CONSUMERS BUT ALSO 774 00:27:59,001 --> 00:28:02,000 TAXPAYERS. 775 00:28:02,001 --> 00:28:04,000 I URGE MY COLLEAGUES TO SUPPORT 776 00:28:04,001 --> 00:28:06,000 THE CLOTURE VOTE AND THE PASSAGE. 777 00:28:06,001 --> 00:28:08,000 AND, MADAM PRESIDENT, I WOULD 778 00:28:08,001 --> 00:28:10,000 ASK UNANIMOUS CONSENT THAT MY 779 00:28:10,001 --> 00:28:11,000 FULL REMARKS BE PRINTED IN THE RECORD. 780 00:28:11,001 --> 00:28:13,000 THE PRESIDING OFFICER: WITUT 781 00:28:13,001 --> 00:28:16,000 OBJECTION. 782 00:28:16,001 --> 00:28:19,000 I WOULD YIELD THE FLOOR. 783 00:28:19,001 --> 00:28:20,000 MR. CHAMBLISS: MADAM PRESIDENT? 784 00:28:20,001 --> 00:28:21,000 THE PRESIDING OFFICER: THE 785 00:28:21,001 --> 00:28:23,000 SENATORROMEOIA 786 00:28:23,001 --> 00:28:24,000 CHAMBLISS: MADAM PRESIDENT, 787 00:28:24,001 --> 00:28:26,000 I RISE TODAY IN STRONG 788 00:28:26,001 --> 00:28:28,000 OPPOSITION TO H.R. 4173, AND I THINK IT'S INTERESTING TO NOTE 789 00:28:28,001 --> 00:28:30,000 THAT WE'VE HAD A NUMBER OF 790 00:28:30,001 --> 00:28:32,000 SPEAKERS OF THE PROPONENTS OF 791 00:28:32,001 --> 00:28:33,000 THIS LEGISLATION TO COM 792 00:28:33,001 --> 00:28:34,000 FORWARD, JUST AS MY GOOD FRIEND 793 00:28:34,001 --> 00:28:35,000 FROM MARYLAND JUST DID, AND SAID 794 00:28:35,001 --> 00:28:36,000 THAT WE'RE GOING TO BE THE 795 00:28:36,001 --> 00:28:37,000 LEADER, THE UNITED STATES IS 796 00:28:37,001 --> 00:28:40,000 GOING TO BE THE LEADER IN THE 797 00:28:40,001 --> 00:28:42,000 FINANCIAL WORLD MARKET WITH THESE CHANGES. 798 00:28:42,001 --> 00:28:45,000 WELL, THE FACT OF THE MATTER IS 799 00:28:45,001 --> 00:28:46,000 THAT OTH COUNTRIES THAT HAVE 800 00:28:46,001 --> 00:28:50,000 STRONG FINANCIAL MARKETS HAVE 801 00:28:50,001 --> 00:28:51,000 SAID PUBLICLY JUST THE OPPOSITE. 802 00:28:51,001 --> 00:28:52,000 AND WHAT I'M AFRAID WE'RE 803 00:28:52,001 --> 00:28:54,000 SETTING OURSELVES UP FOR AND 804 00:28:54,001 --> 00:28:56,000 WHAT I TALKED ABOUT A LOT DURING 805 00:28:56,001 --> 00:28:57,000 THE COURSE OF THE DEBATE ON THE 806 00:28:57,001 --> 00:28:59,000 FLOOR RELATIVE TO THIS BILL IS 807 00:28:59,001 --> 00:29:01,000 THAT WHAT WE'RE GOING TO WIND UP 808 00:29:01,001 --> 00:29:05,000 DOING IS WE'RE GOING TO BE 809 00:29:05,001 --> 00:29:06,000 DRIVING JOBS AND BUSINESS 810 00:29:06,001 --> 00:29:08,000 OVERSEAS WITH THIS MASSIVE PIECE 811 00:29:08,001 --> 00:29:10,000 OF LEGISLATION THAT TRULY 812 00:29:10,001 --> 00:29:11,000 DOESN'T ADDRESS THE PROBLEM. 813 00:29:11,001 --> 00:29:14,000 MADAM PRESIDENT, THERE IS 814 00:29:14,001 --> 00:29:16,000 NOTHING IN THESE 2,300 PAGES 815 00:29:16,001 --> 00:29:18,000 THAT DEALS WITH THE PRIMARY 816 00:29:18,001 --> 00:29:19,000 CATALYST OF MARKET INSTABILITY 817 00:29:19,001 --> 00:29:24,000 INUR ECONOMY. 818 00:29:24,001 --> 00:29:26,000 THE BAILOUT BILL OF FANNIE MAE AND FREDDIE MAC. 819 00:29:26,001 --> 00:29:28,000 THIS BILL SIMPLY IGNORES THE 820 00:29:28,001 --> 00:29:29,000 DEVASTATING IMPACT THAT THESE 821 00:29:29,001 --> 00:29:31,000 TWO ENTITIES CONTINUE TO HAVE 822 00:29:31,001 --> 00:29:32,000 NOT ONLY ON OUR CAPITAL MARKETS 823 00:29:32,001 --> 00:29:33,000 BUT ALSO ON OUR NATION'S 824 00:29:33,001 --> 00:29:37,000 DEFICIT. 825 00:29:37,001 --> 00:29:39,000 ALREADY DEMANDING OVER 826 00:29:39,001 --> 00:29:40,000 $145 BILLION IN TAXPAYER 827 00:29:40,001 --> 00:29:42,000 ASSISTANCE AND WITH NO END IN 828 00:29:42,001 --> 00:29:43,000 SIGHT AS TO WHAT IT'S ULTIMATELY 829 00:29:43,001 --> 00:29:47,000 GOING TO COST THE TAXPAYERS OF 830 00:29:47,001 --> 00:29:50,000 THIS COUNTRY. 831 00:29:50,001 --> 00:29:52,000 IN THE NEWLY CREATED CONSUMER 832 00:29:52,001 --> 00:29:54,000 PROTECTION BUREAU IS AN AFFIRMATION THAT THE PROPONENTS 833 00:29:54,001 --> 00:29:55,000 OF THE LEGISLATION HAVE 834 00:29:55,001 --> 00:29:57,000 ACKNOWLEDGED GOVERNMENT FAILURES 835 00:29:57,001 --> 00:29:59,000 WERE A SIGNIFICANT CAUSE OF OUR 836 00:29:59,001 --> 00:30:01,000 ECONOMIC TURMOIL, BUTHEY STILL 837 00:30:01,001 --> 00:30:03,000 BELIEVE THAT BIGGER GOVERNMENT 838 00:30:03,001 --> 00:30:05,000 IS THE SOLUTION GOING FORWARD 839 00:30:05,001 --> 00:30:10,000 AND THAT DESPITE FAILURE AFTER 840 00:30:10,001 --> 00:30:11,000 FAILURE AMONG VARIOUS REGULATORY 841 00:30:11,001 --> 00:30:13,000 AGENCIES THAT A NEW AGENCY IS 842 00:30:13,001 --> 00:30:16,000 THE ANSWER TO THESE SHORTCOMINGS 843 00:30:16,001 --> 00:30:18,000 AND THAT THIS TIME IT'S GOING TO BE DIFFERENT. 844 00:30:18,001 --> 00:30:19,000 INSTEAD OF ADDRESSING THE 845 00:30:19,001 --> 00:30:21,000 PROBLEMS OF THE CONSUMER 846 00:30:21,001 --> 00:30:22,000 PROTECTIONS IN PLACE UNDER OUR 847 00:30:22,001 --> 00:30:24,000 RRENT REGULATORY STRUCTURE, 848 00:30:24,001 --> 00:30:26,000 THIS NEW OVERSIGHT AGENCY IS AN 849 00:30:26,001 --> 00:30:29,000 ADDED LAYER OF BUREAUCRACY WITH 850 00:30:29,001 --> 00:30:33,000 THE AUTHORITY TO EXAMINE AND 851 00:30:33,001 --> 00:30:35,000 FORCE NEW REGULATIONS FOR NOT 852 00:30:35,001 --> 00:30:38,000 ONLY ALL MORTGAGE-RELATED 853 00:30:38,001 --> 00:30:40,000 BUSINESSES BUT ALSO SMALL MOM 854 00:30:40,001 --> 00:30:42,000 AND POP BUSINESSES ON MAIN 855 00:30:42,001 --> 00:30:45,000 STREET, LIKE PAYDAY LENDERS, 856 00:30:45,001 --> 00:30:46,000 CHECK CASHERS AND OTHER 857 00:30:46,001 --> 00:30:48,000 NONFINANCIAL FIRMS. 858 00:30:48,001 --> 00:30:50,000 THESE TYPES OF ENTITIES WERE 859 00:30:50,001 --> 00:30:51,000 CLEARLY NOT THE CAUSE OF THE 860 00:30:51,001 --> 00:30:54,000 ECONOMIC CRISIS, AND YET THEY 861 00:30:54,001 --> 00:30:56,000 WILL NOW BE SUBJECT TO THE SAME 862 00:30:56,001 --> 00:30:59,000 REGULATIONS AS THE LARGE 863 00:30:59,001 --> 00:31:01,000 FINANCIAL INSTITUTIONS ON WALL STREET. 864 00:31:01,001 --> 00:31:04,000 THIS IS SIMPLY ANOTHER EXAMPLE 865 00:31:04,001 --> 00:31:05,000 OF THE MAJORITY PARTY'S 866 00:31:05,001 --> 00:31:06,000 PREFERENCE FOR A 867 00:31:06,001 --> 00:31:07,000 ONE-SIZE-FITS-ALL REGULATORY 868 00:31:07,001 --> 00:31:08,000 STRUCTURE STIFLING ECONOMIC 869 00:31:08,001 --> 00:31:09,000 GROWTH. 870 00:31:09,001 --> 00:31:10,000 HAVING PARTICIPATED IN THE 871 00:31:10,001 --> 00:31:11,000 CONFERENCE COMMITTEE, I 872 00:31:11,001 --> 00:31:13,000 UNFORTUNATELY WITNESSED "1ST AND 873 00:31:13,001 --> 00:31:15,000 10" THE COMPLETE DISREGARD FOR 874 00:31:15,001 --> 00:31:16,000 ADDRESSING THE REAL ISSUES AT 875 00:31:16,001 --> 00:31:17,000 HAND. 876 00:31:17,001 --> 00:31:18,000 AS RANKING MEMBER OF THE 877 00:31:18,001 --> 00:31:22,000 AGRICULTURE COMMITTEE, I HAVE 878 00:31:22,001 --> 00:31:23,000 SPENT A GREAT DEAL OF TIME 879 00:31:23,001 --> 00:31:25,000 UNDERSTANDING THE 880 00:31:25,001 --> 00:31:27,000 OVER-THE-COUNTER DERIVATIVES 881 00:31:27,001 --> 00:31:28,000 MARKET, ITS COMPLEXITIES AND ITS 882 00:31:28,001 --> 00:31:30,000 LEGITIMATE UTILITY. 883 00:31:30,001 --> 00:31:32,000 I HAVE FOUND THAT BOTH 884 00:31:32,001 --> 00:31:34,000 REPUBLICANS AND DEMOCRATS 885 00:31:34,001 --> 00:31:36,000 GENERALLY AGREE ON THE MAJOR 886 00:31:36,001 --> 00:31:37,000 ISSUES RELATING TO DERIVATIVES 887 00:31:37,001 --> 00:31:38,000 REGULATION. 888 00:31:38,001 --> 00:31:41,000 WE ALL GENERALLY AGREE THAT 889 00:31:41,001 --> 00:31:43,000 THERE NEEDS TO BE GREATER 890 00:31:43,001 --> 00:31:44,000 TRANSPARENCY, REGISTRATION, MORE 891 00:31:44,001 --> 00:31:48,000 CLEARING AND COMPLIANCE WITH A 892 00:31:48,001 --> 00:31:51,000 WHOLE HOST OF BUSINESS CONDUCT 893 00:31:51,001 --> 00:31:52,000 AND EFFICIENT MARKET OPERATION 894 00:31:52,001 --> 00:31:53,000 REGULATIONS. 895 00:31:53,001 --> 00:31:56,000 AND THIS IS IMPORTANT BECAUSE IT 896 00:31:56,001 --> 00:31:59,000 IS A 180-DEGREE SHIFT AWAY FROM 897 00:31:59,001 --> 00:32:01,000 CURRENTAW WHERE 898 00:32:01,001 --> 00:32:02,000 OVER-THE-COUNTER SWAPS ARE 899 00:32:02,001 --> 00:32:03,000 ESSENTIALLY UNREGULATED TODAY. 900 00:32:03,001 --> 00:32:05,000 WITHIN THIS GENERAL AGREEMENT 901 00:32:05,001 --> 00:32:07,000 THAT SWAPS NEED TO GO FROM 902 00:32:07,001 --> 00:32:09,000 UNREGULATED TO FULLY REGULATED, 903 00:32:09,001 --> 00:32:10,000 WE HAVE HAD DISAGREEMENTS ABOUT 904 00:32:10,001 --> 00:32:12,000 WHO SHOULD BE REQUIRED TO CLEAR 905 00:32:12,001 --> 00:32:15,000 THEIR TRANSACTIONS AND HOW BEST 906 00:32:15,001 --> 00:32:17,000 TO REQUIRE SWAPS TO BE 907 00:32:17,001 --> 00:32:19,000 TRANSACRAMENTOD AND REPORTED. 908 00:32:19,001 --> 00:32:20,000 AND THESE DISAGREEMENTS ARE 909 00:32:20,001 --> 00:32:22,000 SIGNIFICANT BECAUSEHEY INVOLVE 910 00:32:22,001 --> 00:32:25,000 REAL BURDENS AND DUTIES WHICH 911 00:32:25,001 --> 00:32:26,000 WILL RESULT IN REAL COSTS TO 912 00:32:26,001 --> 00:32:28,000 BUSINESSES AND CONSUMERS. 913 00:32:28,001 --> 00:32:30,000 I WANT TO MAKE SURE OUR NEW 914 00:32:30,001 --> 00:32:33,000 REGULATIONS ARE TARGETED TO 915 00:32:33,001 --> 00:32:35,000 SERVE A USEFUL PURPOSE. 916 00:32:35,001 --> 00:32:38,000 UNFORTUNATELY, THIS LEGISLATION 917 00:32:38,001 --> 00:32:39,000 WILL ENABLE REGULATORS TO IMPOSE 918 00:32:39,001 --> 00:32:41,000 RESTRICTIONS ON BUSINESSES THAT 919 00:32:41,001 --> 00:32:44,000 HAD ABSOLUTELY NOTHING TO DO 920 00:32:44,001 --> 00:32:46,000 WITH CREATING THE FINANCIAL CRISIS. 921 00:32:46,001 --> 00:32:48,000 EVERY INDUSTRY IN THE COUNTRY 922 00:32:48,001 --> 00:32:50,000 USES DERIVATIVES TO MANAGE THEIR 923 00:32:50,001 --> 00:32:52,000 BUSINESS RISKS, AND MANY OF THEM 924 00:32:52,001 --> 00:32:54,000 WILL NOW BE FORCED TO CLEAR 925 00:32:54,001 --> 00:32:56,000 THEIR DERIVATIVE TRANSACTIONS. 926 00:32:56,001 --> 00:32:59,000 THIS SEEMS SIMPLE ENOUGH UNTIL 927 00:32:59,001 --> 00:33:01,000 YOU REALIZE THAT CLEARING DOES 928 00:33:01,001 --> 00:33:03,000 NOT MAKE RISK WITHIN THE 929 00:33:03,001 --> 00:33:06,000 FINANCIAL SYSTEM DISAPPEAR. 930 00:33:06,001 --> 00:33:08,000 RISK IS SIMPLY TRANSFERRED FROM 931 00:33:08,001 --> 00:33:11,000 THE INDIVIDUAL COUNTERPARTIES TO 932 00:33:11,001 --> 00:33:12,000 THE CLEARING HOUSES, A SERVICE 933 00:33:12,001 --> 00:33:14,000 PROVIDED AT CONSIDERABLE EXPENSE 934 00:33:14,001 --> 00:33:15,000 IN THE FORM OF MARGIN POSTED TO 935 00:33:15,001 --> 00:33:19,000 THE CLEARINGHOUSE. 936 00:33:19,001 --> 00:33:20,000 SO THIS BILL WOULD NOT ELIMINATE 937 00:33:20,001 --> 00:33:22,000 RISK, BUT IT SIMPLY TRANSFERS 938 00:33:22,001 --> 00:33:26,000 RISK FROM ONE PLACE TO ANOTHER 939 00:33:26,001 --> 00:33:27,000 AND IMPOSES COSTS ON MARKET 940 00:33:27,001 --> 00:33:29,000 PARTICIPANTS THAT HAD NOTHING TO 941 00:33:29,001 --> 00:33:32,000 DO WITH CREATING T FINANCIAL CRISIS. 942 00:33:32,001 --> 00:33:33,000 I TRULY FEAR THAT CONSUMERS WILL 943 00:33:33,001 --> 00:33:35,000 ULTIMATELY PAY THE PRICE. 944 00:33:35,001 --> 00:33:37,000 FOR EXAMPLE, THIS LEGISLATION 945 00:33:37,001 --> 00:33:39,000 WOULD FORCE THE FARM CREDIT 946 00:33:39,001 --> 00:33:42,000 SYSTEM INSTITUTIONS TO RUN THEIR 947 00:33:42,001 --> 00:33:43,000 INTEREST RATE SWAPS THROUGH A 948 00:33:43,001 --> 00:33:44,000 CLEARINGHOUSE WHICH WILL RESULT 949 00:33:44,001 --> 00:33:47,000 IN ADDITIONAL COSTS IN THE FORM 950 00:33:47,001 --> 00:33:50,000 OF HIGHER INTEREST RATES TO 951 00:33:50,001 --> 00:33:52,000 THEIR CUSTOMERS WITHOUT DOING 952 00:33:52,001 --> 00:33:54,000 ANYTHING TO LESSEN THE SYSTEMIC RISK. 953 00:33:54,001 --> 00:33:56,000 AND LET ME BE CLEAR AS TO WHO 954 00:33:56,001 --> 00:33:58,000 THIS WILL ULTIMATELY AFFECT, AND 955 00:33:58,001 --> 00:34:00,000 IT IS VERY CLEAR THAT OUR 956 00:34:00,001 --> 00:34:02,000 FARMERS AND RANCHERS, OUR 957 00:34:02,001 --> 00:34:04,000 ELECTRIC COOPERATIVES AND OUR 958 00:34:04,001 --> 00:34:05,000 ETHANOL 959 00:34:05,001 --> 00:34:08,000 FINANCING FROM THESE 960 00:34:08,001 --> 00:34:10,000 INSTITUTIONS WILL BEAR THIS BURDEN. 961 00:34:10,001 --> 00:34:12,000 INSTITUTIONS LIKE COBANK WILL BE 962 00:34:12,001 --> 00:34:15,000 FORCEED TO CLEAR THEIR SWAPS AND 963 00:34:15,001 --> 00:34:16,000 EXECUTE THEM ON A TRADING 964 00:34:16,001 --> 00:34:17,000 FACILITY WHICH WILL IMPOSE 965 00:34:17,001 --> 00:34:20,000 SIGNIFICANT NEW COSTS AND RESULT 966 00:34:20,001 --> 00:34:21,000 IN HIGHER RATES FOR THEIR 967 00:34:21,001 --> 00:34:23,000 CUSTOMER OR, WORSE, DISCOURAGE 968 00:34:23,001 --> 00:34:24,000 THEM FROM MANAGING THEIR RISK, 969 00:34:24,001 --> 00:34:26,000 WHICH WILL AGAIN RESULT IN 970 00:34:26,001 --> 00:34:27,000 HIGHER COSTS FOR THEIR 971 00:34:27,001 --> 00:34:28,000 BORROWERS. 972 00:34:28,001 --> 00:34:30,000 AND WHY? 973 00:34:30,001 --> 00:34:32,000 BECAUSE THIS LEGISLATION BROADLY 974 00:34:32,001 --> 00:34:35,000 APPLIES REGULATION, TREATING ALL 975 00:34:35,001 --> 00:34:38,000 FINANCIAL INSTITUTIONS THE SAME. 976 00:34:38,001 --> 00:34:40,000 COBANK AND GOLDMAN SACHS ARE NOT 977 00:34:40,001 --> 00:34:42,000 THE SAME AND SHOULD NOT BE 978 00:34:42,001 --> 00:34:44,000 REGULATED IN THE SAME MANNER. 979 00:34:44,001 --> 00:34:47,000 COBANK SHOULD HAVE THE OPTION TO 980 00:34:47,001 --> 00:34:49,000 CLEAR THEIR SWAPS, NOT MANDATE 981 00:34:49,001 --> 00:34:51,000 IT TO DO SO. 982 00:34:51,001 --> 00:34:52,000 WHILE T CONFERENCE REPORT 983 00:34:52,001 --> 00:34:54,000 PROVIDES AN EXEMPTION FOR SOME 984 00:34:54,001 --> 00:34:55,000 BUSINESS FROM THIS 985 00:34:55,001 --> 00:34:59,000 DERIVATIVE-CLEARING MANDATE, IT 986 00:34:59,001 --> 00:35:00,000 ALSO IMPOSES NEW MARGIN 987 00:35:00,001 --> 00:35:02,000 REQUIREMENTS ON DERIVATIVE 988 00:35:02,001 --> 00:35:04,000 DEALERS FOR THESE SAME UNCLEAR TRANSACTIONS. 989 00:35:04,001 --> 00:35:05,000 AND WHO WILL LIKELY PAY FOR 990 00:35:05,001 --> 00:35:08,000 THESE NEW MARGIN REQUIREMENTS IN 991 00:35:08,001 --> 00:35:10,000 THE FORM OF HIGHER FEES AGAIN? 992 00:35:10,001 --> 00:35:11,000 IT'S PRETTY CLEAR THAT THE 993 00:35:11,001 --> 00:35:13,000 PUBLIC AND PRIVATE COMPANIES 994 00:35:13,001 --> 00:35:15,000 ACROSS THE NATION THAT HAD 995 00:35:15,001 --> 00:35:17,000 NOTHING TO DO WITH THE FINANCIAL 996 00:35:17,001 --> 00:35:20,000 CRISIS AND THAT ARE SIMPLY 997 00:35:20,001 --> 00:35:23,000 SEEKING TO MINIMIZE RISK WILL 998 00:35:23,001 --> 00:35:24,000 BEAR THIS BURDEN. 999 00:35:24,001 --> 00:35:25,000 THE ENTIRE POINT OF EXEMPTING 1000 00:35:25,001 --> 00:35:26,000 SOME OF THEM FROM THE CLEARING 1001 00:35:26,001 --> 00:35:28,000 MANDATE WAS TO MAKE SURE THAT 1002 00:35:28,001 --> 00:35:30,000 THEY DO NOT BEAR THE BURDEN OF 1003 00:35:30,001 --> 00:35:32,000 INCREASED MARGIN COSTS, BUT THIS 1004 00:35:32,001 --> 00:35:33,000 LANGUAGE WOULD INDIRECTLY 1005 00:35:33,001 --> 00:35:36,000 SUBJECT THESE BUSINESSES TO THE 1006 00:35:36,001 --> 00:35:38,000 EXPENSE OF MARGINS IMPOSED ON 1007 00:35:38,001 --> 00:35:39,000 THEIR DEALER COUNTERPARTIES, 1008 00:35:39,001 --> 00:35:41,000 COUNTERPARTIES THAT WILL BE 1009 00:35:41,001 --> 00:35:43,000 FORCED TO RECOUP THIS COST IN 1010 00:35:43,001 --> 00:35:45,000 THE FORM OF FEES AND BUSINESSES 1011 00:35:45,001 --> 00:35:49,000 WILL BE FORCED TO PASS THEIR 1012 00:35:49,001 --> 00:35:50,000 COSTS ON TO CONSUMERS. 1013 00:35:50,001 --> 00:35:51,000 AND MADAM CHAIRMAN, I WOULD 1014 00:35:51,001 --> 00:35:53,000 ENCOURAGE ALL MEMBERS OF THIS 1015 00:35:53,001 --> 00:35:54,000 BODY TO LOOK AT YESTERD'S 1016 00:35:54,001 --> 00:35:57,000 "WALL STREET JOURNAL." 1017 00:35:57,001 --> 00:35:59,000 THERE IS A FRONT-PAGE STORY ON 1018 00:35:59,001 --> 00:36:00,000 DERIVATIVES, AND WHEN WE GET ON 1019 00:36:00,001 --> 00:36:01,000 THE FLOOR HERE AND START 1020 00:36:01,001 --> 00:36:03,000 DEBATING DERIVATIVES, MOST 1021 00:36:03,001 --> 00:36:06,000 PEOPLE'S EYES GLAZE OVER BECAUSE 1022 00:36:06,001 --> 00:36:08,000 IT IS COMPLEX AND AN ISSUE THAT 1023 00:36:08,001 --> 00:36:12,000 IS VERY DIFFICULT TO UNDERSTAND, 1024 00:36:12,001 --> 00:36:18,000 BUT IN THAT ARTICLE, IT EXPLAINS 1025 00:36:18,001 --> 00:36:20,000 THE SIMPLICITY THAT -- THAT THE 1026 00:36:20,001 --> 00:36:21,000 DERIVATIVES WORLD IMPARTS ITSELF 1027 00:36:21,001 --> 00:36:24,000 IN, BECAUSE WHAT THE ARTICLE 1028 00:36:24,001 --> 00:36:26,000 TALKS ABOUT IS IT GOES THROUGH A 1029 00:36:26,001 --> 00:36:30,000 STAGE OF A FARMER IN NEBRASKA 1030 00:36:30,001 --> 00:36:32,000 AND HIS USE OF DERIVATIVES AND 1031 00:36:32,001 --> 00:36:35,000 THEN HIS ULTIMATE PURCHASER OF 1032 00:36:35,001 --> 00:36:38,000 HIS PRODUCT, THE RANCHER AND HOW 1033 00:36:38,001 --> 00:36:41,000 THAT RANCHER USES DERIVATIVES TO 1034 00:36:41,001 --> 00:36:42,000 ELIMINATE RISK AND HOPEFULLY 1035 00:36:42,001 --> 00:36:44,000 GUARANTEE A PROFIT IN HIS 1036 00:36:44,001 --> 00:36:46,000 BUSINESS, AND THEN HOW THE 1037 00:36:46,001 --> 00:36:50,000 SLAUGHTER HOUSE TAKES THE 1038 00:36:50,001 --> 00:36:51,000 PRODUCT FROM THE LIVTOCK 1039 00:36:51,001 --> 00:36:54,000 OPERATOR, THE MARKET OPERATOR 1040 00:36:54,001 --> 00:36:55,000 AND USES DERIVATIVES IN THEIR 1041 00:36:55,001 --> 00:36:58,000 BUSINESS, AND THEN ULTIMATELY 1042 00:36:58,001 --> 00:37:00,000 THE GUY THAT OWNS THE TRUCKING 1043 00:37:00,001 --> 00:37:01,000 COMPANY AND HOW HE USES 1044 00:37:01,001 --> 00:37:02,000 DERIVATIVES. 1045 00:37:02,001 --> 00:37:05,000 AND IT'S VERY CLEAR IN THIS 1046 00:37:05,001 --> 00:37:08,000 ARTICLE THAT THESE GUYS' LIFE IS 1047 00:37:08,001 --> 00:37:09,000 GOING TO CHANGE FROM A BUSINESS 1048 00:37:09,001 --> 00:37:11,000 PERSPECTIVE, AND THEY'RE NOT 1049 00:37:11,001 --> 00:37:12,000 GOING TO BE ABLE TO USE 1050 00:37:12,001 --> 00:37:15,000 DERIVATIVES IN THE WAY THAT THEY 1051 00:37:15,001 --> 00:37:17,000 HAVE USED IT BEFORE. 1052 00:37:17,001 --> 00:37:18,000 THEY HAD NOTHING TO DO WITH THE 1053 00:37:18,001 --> 00:37:20,000 FINANCIAL CRISIS THAT DEVELOPED 1054 00:37:20,001 --> 00:37:21,000 IN THIS COUNTRY, BUT YET THEY'RE 1055 00:37:21,001 --> 00:37:24,000 GOING TO BE CREATED ONCE AGAIN 1056 00:37:24,001 --> 00:37:27,000 IN THE SAME WAY AS A GOLDMAN 1057 00:37:27,001 --> 00:37:28,000 SACHSR OTHER MAJOR SWAPS AND 1058 00:37:28,001 --> 00:37:30,000 DERIVATIVES DEALERS. 1059 00:37:30,001 --> 00:37:31,000 ALSO RELATED TO DERIVATIVES, 1060 00:37:31,001 --> 00:37:33,000 THERE WERE CONSIDERABLE 1061 00:37:33,001 --> 00:37:35,000 IMPROVEMENTS MADE TO THE 1062 00:37:35,001 --> 00:37:36,000 SO-CALLED SWAP DESK PUSHO 1063 00:37:36,001 --> 00:37:38,000 PROVISION, AND I COMMEND THE 1064 00:37:38,001 --> 00:37:39,000 CHAIRMAN FOR HIS WORK ON THAT. 1065 00:37:39,001 --> 00:37:41,000 BANKS WOULD BE ABLE TO CONTINUE 1066 00:37:41,001 --> 00:37:44,000 TO ENGAGEN INTEREST RATE AND 1067 00:37:44,001 --> 00:37:45,000 FOREIGN CURRENCY SWAPS, WHICH IS 1068 00:37:45,001 --> 00:37:46,000 ESSENTIAL TO THE BUSINESS OF 1069 00:37:46,001 --> 00:37:48,000 BANKS. 1070 00:37:48,001 --> 00:37:50,000 HOWEVER, I REMAIN CONCERNED THAT 1071 00:37:50,001 --> 00:37:52,000 FORCING SWAP DEALER BANKS TO 1072 00:37:52,001 --> 00:37:54,000 SPIN-OFF THEIR COMMODITY TRADING 1073 00:37:54,001 --> 00:37:56,000 WILL HURT THOSE UTILITIES AND 1074 00:37:56,001 --> 00:37:58,000 AIRLINES WISHING TO HEDGE THEIR 1075 00:37:58,001 --> 00:38:00,000 ENERGY RISKS IN THE IMMEDIATE FUTURE. 1076 00:38:00,001 --> 00:38:02,000 THEY WILL BE FORCED TO ESTABLISH 1077 00:38:02,001 --> 00:38:04,000 NEW CREDIT RATINGS AND STANDINGS 1078 00:38:04,001 --> 00:38:06,000 WITH THESE AFFILIATES RATHER 1079 00:38:06,001 --> 00:38:08,000 THAN TAKE ADVANTAGE OF THEIR 1080 00:38:08,001 --> 00:38:10,000 LONG-STANDING RELATIONSHIP WITH 1081 00:38:10,001 --> 00:38:12,000 THEIR CURRENT BANK, AND I FAIL 1082 00:38:12,001 --> 00:38:15,000 TO UNDERSTAND WHY FORCING THESE 1083 00:38:15,001 --> 00:38:16,000 ENTITIES TO SPIN-OFF ANY ASPECT 1084 00:38:16,001 --> 00:38:18,000 OF THEIR SWAP BUSINESS IS NECESSARY. 1085 00:38:18,001 --> 00:38:21,000 I WHOLEHEARTEDLY SUPPORT EFFORTS 1086 00:38:21,001 --> 00:38:22,000 TO MAKE THE SWAPS MARKET MORE TRANSPARENT. 1087 00:38:22,001 --> 00:38:24,000 IT NEEDS TO BE. 1088 00:38:24,001 --> 00:38:26,000 I BELIEVE THIS WILL BE 1089 00:38:26,001 --> 00:38:27,000 ACCOMPLISHED ONCE REGULATORS 1090 00:38:27,001 --> 00:38:29,000 HAVE ACCESS TO THE DATA WHICH 1091 00:38:29,001 --> 00:38:30,000 HAS TO DATE BEEN COMPLETELY 1092 00:38:30,001 --> 00:38:33,000 UNAVAILABLE TO THEM. 1093 00:38:33,001 --> 00:38:34,000 THE PUBLIC WILL BENEFIT FROM 1094 00:38:34,001 --> 00:38:36,000 KNOWING O IS PARTICIPATING IN 1095 00:38:36,001 --> 00:38:38,000 THESE MARKETS, AND WE WILL 1096 00:38:38,001 --> 00:38:40,000 FINALLY HAVE THE DATA WE NEED TO 1097 00:38:40,001 --> 00:38:42,000 MAKE INFORMED POLICY DECISIONS 1098 00:38:42,001 --> 00:38:43,000 RELATED TO DERIVATIVES. 1099 00:38:43,001 --> 00:38:46,000 OUR ECONOMY NEEDS MORE 1100 00:38:46,001 --> 00:38:47,000 OPPORTUNITIES FOR ALL BUSINESSES 1101 00:38:47,001 --> 00:38:49,000 TO GROW AND PROSPER. 1102 00:38:49,001 --> 00:38:52,000 TIME AND AGAIN, IT IS THE SMALL 1103 00:38:52,001 --> 00:38:54,000 AND MEDIUM-SIZED BUSINESSES THAT 1104 00:38:54,001 --> 00:38:56,000 CREATE THE LION'S SHARE OF JOBS 1105 00:38:56,001 --> 00:38:59,000 AFTER A MAJOR ECONOMIC 1106 00:38:59,001 --> 00:39:02,000 RECESSION, AND WE NEED TO FOSTER 1107 00:39:02,001 --> 00:39:03,000 AND INCUBATE THESE SMALL AND 1108 00:39:03,001 --> 00:39:04,000 MEDIUM-SIZED BUSINESSES RIGHT 1109 00:39:04,001 --> 00:39:06,000 NOW AND NOT HAMPER THEM. 1110 00:39:06,001 --> 00:39:07,000 WE NEED TO ENSURE THAT THEY ARE 1111 00:39:07,001 --> 00:39:08,000 ABLE TO ACCESS CAPITAL AND 1112 00:39:08,001 --> 00:39:09,000 MANAGE THEIR RISK THROUGH THE 1113 00:39:09,001 --> 00:39:11,000 AWES OF DERIVATIVES. 1114 00:39:11,001 --> 00:39:13,000 RIGHT NOW, THERE ARE A LOT OF 1115 00:39:13,001 --> 00:39:14,000 THESE SMALL AND MEDIUM-SIZED 1116 00:39:14,001 --> 00:39:17,000 COMPANIES THAT ARE READY TO 1117 00:39:17,001 --> 00:39:19,000 EXPAND BUT CANNOT GET ADEQUATE 1118 00:39:19,001 --> 00:39:21,000 ACCESS TO CAPITAL BECAUSE 1119 00:39:21,001 --> 00:39:23,000 LENDERS ARE SAYING THAT IT'S TOO 1120 00:39:23,001 --> 00:39:25,000 RISKY AND REGULATORS WON'T ALLOW 1121 00:39:25,001 --> 00:39:27,000 THESE LENDERS TO HELP. 1122 00:39:27,001 --> 00:39:30,000 SO, MADAM PRESIDENT, I BELIEVE 1123 00:39:30,001 --> 00:39:31,000 THERE IS A NEED TO RESPOND TO 1124 00:39:31,001 --> 00:39:32,000 WHAT WENT WRONG IN OUR FINANCIAL 1125 00:39:32,001 --> 00:39:33,000 SYSTEM AND I SUPPO DOING SO IN 1126 00:39:33,001 --> 00:39:34,000 A RESPONSIBLE WAY THAT WILL 1127 00:39:34,001 --> 00:39:37,000 CONTINUE TO ALLOW MAIN STREET 1128 00:39:37,001 --> 00:39:40,000 BUSINESSES TO MANAGE THEIR RISK 1129 00:39:40,001 --> 00:39:41,000 APPROPRIATELY, HOLD THESE -- 1130 00:39:41,001 --> 00:39:43,000 HOLD THOSE RESPONSIBLE FOR THIS 1131 00:39:43,001 --> 00:39:46,000 MESS ACCOUNTABLE AND NOT CREATE 1132 00:39:46,001 --> 00:39:47,000 HUGE NEW GOVERNMENT 1133 00:39:47,001 --> 00:39:49,000 BUREAUCRACIES. UNFORTUNATELY, THIS LEGISLATION 1134 00:39:49,001 --> 00:39:51,000 FALLS SHORT OF THESE GOALS. 1135 00:39:51,001 --> 00:39:52,000 I AM PLEASED THAT THE CHAIRMAN 1136 00:39:52,001 --> 00:39:54,000 OF THE BANKING COMMITTEE IS HERE 1137 00:39:54,001 --> 00:39:56,000 BECAUSE I DO WANT TO SAY 1138 00:39:56,001 --> 00:39:58,000 PUBLICLY -- AND I'VE TOLD HIM 1139 00:39:58,001 --> 00:39:59,000 THIS PRIVATELY AND I WILL 1140 00:39:59,001 --> 00:40:01,000 CONTINUE TO SAY IT -- THAT HE 1141 00:40:01,001 --> 00:40:03,000 HAD A VERY DIFFICULT JOB, AND 1142 00:40:03,001 --> 00:40:05,000 WHILE WE DISAGREED ON A LOT OF 1143 00:40:05,001 --> 00:40:09,000 MAJOR ISSUES HERE, HE WAS ALWAYS 1144 00:40:09,001 --> 00:40:10,000 OPENOR DISCUSSION. 1145 00:40:10,001 --> 00:40:12,000 HE ALLOWED PARTICIPATION ON THE 1146 00:40:12,001 --> 00:40:14,000 FLOOR AS WELL AS DISCUSSIONS OFF 1147 00:40:14,001 --> 00:40:15,000 THE FLOOR, AND FOR THAT, I THANK 1148 00:40:15,001 --> 00:40:17,000 HIM. 1149 00:40:17,001 --> 00:40:20,000 HE KNOWS THAT I OBVIOUSLY CANNO 1150 00:40:20,001 --> 00:40:23,000 VOTE FOR THIS BILL, BUT HE HAS 1151 00:40:23,001 --> 00:40:25,000 PROVED HIMSELF TO BE A VERY 1152 00:40:25,001 --> 00:40:27,000 VALUED MEMBER OF THE SENATE B 1153 00:40:27,001 --> 00:40:28,000 THE WAY HE HAS CONDUCTED HIMSELF 1154 00:40:28,001 --> 00:40:30,000 THROUGHOUT THIS WHOLE PROCESS, 1155 00:40:30,001 --> 00:40:34,000 AND FOR THAT I THANK HIM. 1156 00:40:34,001 --> 00:40:35,000 ?uMADAM CHAIRMAN, I YIELD THE 1157 00:40:35,001 --> 00:40:36,000 FLOOR. 1158 00:40:36,001 --> 00:40:37,000 MR. DODD: BEFORE MY COLLEAGUE 1159 00:40:37,001 --> 00:40:38,000 FROM GEORGIA LEAVES, LET ME 1160 00:40:38,001 --> 00:40:40,000 THANK HIM AS WELL. 1161 00:40:40,001 --> 00:40:41,000 OF COURSE, HOPE ALWAYS SPRINGS 1162 00:40:41,001 --> 00:40:43,000 ETERNAL. 1163 00:40:43,001 --> 00:40:44,000 THE VOTE HASN'T OCCURRED YET, SO 1164 00:40:44,001 --> 00:40:46,000 YOU NEVER KNOW, WE MIGHT GET HIS 1165 00:40:46,001 --> 00:40:48,000 VOTE YET IN ALL OF THIS. 1166 00:40:48,001 --> 00:40:49,000 BUT LET ME THANK HIM AS WELL. 1167 00:40:49,001 --> 00:40:50,000 I DON'T SERVE ON THE AG 1168 00:40:50,001 --> 00:40:52,000 COMMITTEE WITH HIM. 1169 00:40:52,001 --> 00:40:54,000 SENATOR CHAMBLISS WAS A VERY 1170 00:40:54,001 --> 00:40:55,000 VALUED MEMBER OF THIS CONFERENCE 1171 00:40:55,001 --> 00:40:56,000 AND OBVIOUSLY DID A LOT OF WORK 1172 00:40:56,001 --> 00:40:58,000 IN THE AG COMMITTEE DEALING WITH 1173 00:40:58,001 --> 00:41:00,000 THE AREAS OF THE BILL THAT HE 1174 00:41:00,001 --> 00:41:01,000 HAS JUST SPENT SEVERAL MINUTES 1175 00:41:01,001 --> 00:41:02,000 TALKING ABOUT, AND HE 1176 00:41:02,001 --> 00:41:04,000 VERY GOOD POINTS. 1177 00:41:04,001 --> 00:41:05,000 I WOULD BE THE LAST PERSON TO 1178 00:41:05,001 --> 00:41:07,000 SUGGEST, AS THE CO-AUTHOR OF 1179 00:41:07,001 --> 00:41:08,000 THIS BILL, THAT WE HAVE CRAFTED 1180 00:41:08,001 --> 00:41:09,000 THE PERFECT PIECE OF 1181 00:41:09,001 --> 00:41:10,000 LEGISLATION. 1182 00:41:10,001 --> 00:41:12,000 AS HE POINTS OUT, THESE ARE 1183 00:41:12,001 --> 00:41:14,000 HIGHLY COMPLICATED AREAS. 1184 00:41:14,001 --> 00:41:17,000 ONE OF THE REASONS WE TRIED NOT 1185 00:41:17,001 --> 00:41:18,000 TO WRITE A SERIES OF REGULATIONS 1186 00:41:18,001 --> 00:41:20,000 FAR BEYOND THE COMPETENCY OF 1187 00:41:20,001 --> 00:41:22,000 THOSE OF US IN THIS CHAMBER IS 1188 00:41:22,001 --> 00:41:24,000 BECAUSE IT IS COMPLICATED, AND 1189 00:41:24,001 --> 00:41:25,000 OBVIOUSLY WE HAVE DELEGATED THE 1190 00:41:25,001 --> 00:41:27,000 ULTIMATE RESPONSIBILITY THAT WE 1191 00:41:27,001 --> 00:41:28,000 NOW HAVE TO WATCH IN OVERSIGHT 1192 00:41:28,001 --> 00:41:30,000 FROM THE REGULATORY COMMUNITY TO 1193 00:41:30,001 --> 00:41:32,000 MAKE SURE THEY DO THIS RIGHT. 1194 00:41:32,001 --> 00:41:34,000 I POINTED OUT YESTERDAY AND HE 1195 00:41:34,001 --> 00:41:36,000 HAS POINTED OUT AGAIN TODAY WHEN 1196 00:41:36,001 --> 00:41:39,000 YOU GET INTO A SITUATION LIKE IN 1197 00:41:39,001 --> 00:41:40,000 THIS CRISIS, CERTAIN WORDS 1198 00:41:40,001 --> 00:41:41,000 BECOME PEJORATIVES AND 1199 00:41:41,001 --> 00:41:43,000 DERIVATIVES UNFORTUNATELY HAS 1200 00:41:43,001 --> 00:41:45,000 BECOME THAT, AND IT SHOULDN'T. 1201 00:41:45,001 --> 00:41:47,000 THESE ARE VERY CRITICAL 1202 00:41:47,001 --> 00:41:48,000 COMPONENTS FOR CAPITAL 1203 00:41:48,001 --> 00:41:51,000 FORMATION, JOB GROWTH AND WEALTH 1204 00:41:51,001 --> 00:41:53,000 CREATION IN OUR COUNTRY. 1205 00:41:53,001 --> 00:41:54,000 HEDGING AGAINST RISK IS 1206 00:41:54,001 --> 00:41:55,000 ABSOLUTELY ESSENTIAL. 1207 00:41:55,001 --> 00:41:56,000 THEY ARE A VITALLY IMPORTANT 1208 00:41:56,001 --> 00:41:58,000 ELEMENT IN OUR ECONOMY. 1209 00:41:58,001 --> 00:42:00,000 AND IOPE THAT PEOPLE WHEN THEY 1210 00:42:00,001 --> 00:42:02,000 HEAR THE WORD DERIVATIVE BEING 1211 00:42:02,001 --> 00:42:04,000 SPOKEN OF, THEY DON'T ASSUME 1212 00:42:04,001 --> 00:42:05,000 THAT SOMEHOW THIS IS A BAD IDEA. 1213 00:42:05,001 --> 00:42:06,000 YOU ALMOST GET THE SENSE THAT 1214 00:42:06,001 --> 00:42:08,000 PEOPLE FEEL THAT. 1215 00:42:08,001 --> 00:42:10,000 SO I LOOK FORWARD IN THE COMING 1216 00:42:10,001 --> 00:42:12,000 WEEKS AND MONTHS AS THE 1217 00:42:12,001 --> 00:42:15,000 REGULATORS BEGIN TO WORK WITH 1218 00:42:15,001 --> 00:42:16,000 THIS BILL IF, IN FACT, IT 1219 00:42:16,001 --> 00:42:17,000 PASSES, TO DO THAT. 1220 00:42:17,001 --> 00:42:19,000 A LOT OF THE RECORD THAT HAS 1221 00:42:19,001 --> 00:42:21,000 BEEN ESTABLISHED IN ALL OF THIS 1222 00:42:21,001 --> 00:42:22,000 AREA IN NO SMALL MEASURE IS 1223 00:42:22,001 --> 00:42:24,000 TO THE SENATOR FROM GEORGIA, AND 1224 00:42:24,001 --> 00:42:27,000 I THANK 1225 00:42:27,001 --> 00:42:28,000 WORK AS WELL. 1226 00:42:28,001 --> 00:42:33,000 MR. PRESIDENT -- MADAM 1227 00:42:33,001 --> 00:42:34,000 PRESIDENT, I YIELD THE FLOOR. 1228 00:42:34,001 --> 00:42:36,000 MR. DODD: MADAM PRESIDENT, I 1229 00:42:36,001 --> 00:42:37,000 WOULD NOTE THE ABSENCE OF A 1230 00:42:37,001 --> 00:42:39,000 QUORUM AND ASK THAT THE TIME BE 1231 00:42:39,001 --> 00:42:40,000 EQUALLY 1232 00:42:40,001 --> 00:42:41,000 IF I MAY. 1233 00:42:41,001 --> 00:42:42,000 THE PRESIDING 1234 00:42:42,001 --> 00:42:46,000 OBJECTION. 1235 00:42:46,001 --> 00:45:12,000 THE CLERK WILL CALL THE ROLL. 1236 00:45:12,001 --> 00:45:21,000 QUORUM CALL: 1237 00:45:21,001 --> 00:49:25,000 QUORUM CALLQUORUM CALL: 1238 00:49:25,001 --> 00:49:27,000 QUORUM CALL: 1239 00:49:27,001 --> 00:49:28,000 MR. SHELBY: MADAM PRESIDENT? 1240 00:49:28,001 --> 00:49:29,000 THE PRESIDING OFFICER: THE 1241 00:49:29,001 --> 00:49:31,000 SENATOR FROM ALABAMA. 1242 00:49:31,001 --> 00:49:32,000 MR. SHELBY: 1243 00:49:32,001 --> 00:49:33,000 CONSENT TH THE QUORUM CALL BE 1244 00:49:33,001 --> 00:49:34,000 DISPENSED WITH. 1245 00:49:34,001 --> 00:49:35,000 THE PRESIDING OFFICER: WITHOUT 1246 00:49:35,001 --> 00:49:36,000 OBJECTION. 1247 00:49:36,001 --> 00:49:38,000 MR. SHELBY: MADAM PRESIDENT, I 1248 00:49:38,001 --> 00:49:40,000 RISE TODAY TO OFFER SOME REMARKS 1249 00:49:40,001 --> 00:49:42,000 ON THE DODD-FRANK REGULATION 1250 00:49:42,001 --> 00:49:44,000 CONFERENCE REPORT WHICH IS NOW 1251 00:49:44,001 --> 00:49:45,000 BEFORE THE SENATE. 1252 00:49:45,001 --> 00:49:48,000 MADAM PRESIDENT, NEARLY TWO 1253 00:49:48,001 --> 00:49:50,000 YEARS AGO, THE FINANCIAL CRISIS 1254 00:49:50,001 --> 00:49:52,000 EXPOSED MASSIVE DEFICIENCIES IN 1255 00:49:52,001 --> 00:49:55,000 THE STRUCTURE AND THE CULTURE OF 1256 00:49:55,001 --> 00:49:58,000 OUR FINANCIAL REGULATORY SYSTEM. 1257 00:49:58,001 --> 00:50:00,000 YEARS OF TECHNOLOGICAL ADVANCES, 1258 00:50:00,001 --> 00:50:03,000 PRODUCT DEVELOPMENT, AND THE 1259 00:50:03,001 --> 00:50:05,000 ADVENT OF GLOBAL CAPITAL MARKETS 1260 00:50:05,001 --> 00:50:08,000 RENDERED THE SYSTEM ILL-SUITED 1261 00:50:08,001 --> 00:50:09,000 TO ACHIEVE ITS MISSION IN THE 1262 00:50:09,001 --> 00:50:11,000 MODERN ECONOMY. 1263 00:50:11,001 --> 00:50:12,000 MADAM PRESIDENT, DECADES OF 1264 00:50:12,001 --> 00:50:14,000 INSULATION FROM ACCOUNTABILITY 1265 00:50:14,001 --> 00:50:16,000 DISTRACTED REGULATORS FROM 1266 00:50:16,001 --> 00:50:19,000 FOCUSING ON THAT MISSION. 1267 00:50:19,001 --> 00:50:22,000 INSTEAD OF ACTING TO PRESERVE 1268 00:50:22,001 --> 00:50:24,000 SAFE AND SOUND MARKETS, THE 1269 00:50:24,001 --> 00:50:26,000 REGULATORS PRIMARILY BECAME 1270 00:50:26,001 --> 00:50:27,000 FOCUSED ON EXPANDING THE SCOPE 1271 00:50:27,001 --> 00:50:30,000 OF THEIR BUREAUCRATIC REACH. 1272 00:50:30,001 --> 00:50:32,000 AND AFTER THE CRISIS WHICH COST 1273 00:50:32,001 --> 00:50:34,000 TRILLIONS OF DOLLARS AND 1274 00:50:34,001 --> 00:50:37,000 MILLIONS OF JOBS, IT WAS CLEAR 1275 00:50:37,001 --> 00:50:38,000 THAT SIGNIFICANT REFORM WAS NECESSARY. 1276 00:50:38,001 --> 00:50:41,000 BUT DESPITE BROAD AGREEMENT ON 1277 00:50:41,001 --> 00:50:43,000 THE NEED FOR REFORM, THE 1278 00:50:43,001 --> 00:50:46,000 MAJORITY DECIDED IT WOULD RATHER 1279 00:50:46,001 --> 00:50:48,000 MOVE FORWARD WITH A PARTISAN 1280 00:50:48,001 --> 00:50:54,000 BILL. 1281 00:50:54,001 --> 00:50:57,000 THE RESULT IS A 2,300-PAGE LEGISLATIVE NSTER I BELIEVE 1282 00:50:57,001 --> 00:51:00,000 BEFORE US THAT EXPANDS THE SCOPE 1283 00:51:00,001 --> 00:51:01,000 AND THE POWER OF INEFFECTIVE 1284 00:51:01,001 --> 00:51:04,000 BUREAUCRACIES. 1285 00:51:04,001 --> 00:51:05,000 IT CREATES VAST NEW 1286 00:51:05,001 --> 00:51:06,000 BUREAUCRACIES WITH LITTLE 1287 00:51:06,001 --> 00:51:09,000 ACCOUNTABILITY AND SERIOUSLY I 1288 00:51:09,001 --> 00:51:12,000 BELIEVE UNDERMINES THE 1289 00:51:12,001 --> 00:51:13,000 COMPETITIVENESS OF THE AMERICAN ECONOMY. 1290 00:51:13,001 --> 00:51:14,000 UNFORTUNATELY, THE BILL DOES 1291 00:51:14,001 --> 00:51:17,000 VERY LITTLE TO MAKE OUR 1292 00:51:17,001 --> 00:51:19,000 FINANCIAL SYSTEM SAFER. 1293 00:51:19,001 --> 00:51:20,000 THEREFORE, I WILL OPPOSE THE 1294 00:51:20,001 --> 00:51:25,000 DODD-FRANK BILL AND URGE MY 1295 00:51:25,001 --> 00:51:27,000 COLLEAGUES TO DO THE SAME. 1296 00:51:27,001 --> 00:51:29,000 MADAM PRESIDENT, THIS WAS NOT A 1297 00:51:29,001 --> 00:51:31,000 PREORDAINED OUTCOME. 1298 00:51:31,001 --> 00:51:34,000 IT IS THE DIRECT RESULT OF THE 1299 00:51:34,001 --> 00:51:36,000 DECISIONS MADE BY THE OBAMA ADMINISTRATION. 1300 00:51:36,001 --> 00:51:38,000 HAD THEY SINCERELY WANTED TO 1301 00:51:38,001 --> 00:51:40,000 PRODUCE A BIPARTISAN BILL, I 1302 00:51:40,001 --> 00:51:44,000 HAVE NO DOUBT THAT WE COULD HAVE 1303 00:51:44,001 --> 00:51:45,000 CRAFTED A STRONG BILL THAT WOULD 1304 00:51:45,001 --> 00:51:46,000 HAVE GARNERED 80 OR MORE VOTES 1305 00:51:46,001 --> 00:51:49,000 THE SENATE. 1306 00:51:49,001 --> 00:51:51,000 IF THE AMERICAN PEOPLE HAVEN'T 1307 00:51:51,001 --> 00:51:53,000 NOTICED BY NOW, THAT IS HOW -- 1308 00:51:53,001 --> 00:51:55,000 NOT HOW THINGS WORK UNDER THE 1309 00:51:55,001 --> 00:51:57,000 DEMOCRATIC RULE. 1310 00:51:57,001 --> 00:51:58,000 UNFORTUNATELY, MADAM PRESIDENT, 1311 00:51:58,001 --> 00:52:00,000 THE PARTISAN MANNER IN WHICH 1312 00:52:00,001 --> 00:52:02,000 THIS BIL WAS CONSTRUCTEDS NOT 1313 00:52:02,001 --> 00:52:04,000 ITS GREATEST SHORTCOMING. 1314 00:52:04,001 --> 00:52:07,000 ONE WOULD HAVE ASSUMED THAT THE 1315 00:52:07,001 --> 00:52:08,000 SCOPE OF THE CRISIS, TRILLIONS 1316 00:52:08,001 --> 00:52:10,000 OF DOLLARS LOST AND MILLIONS OF 1317 00:52:10,001 --> 00:52:12,000 JOBS ELIMINATED WOULD HAVE 1318 00:52:12,001 --> 00:52:14,000 COMPELLED THE BANKING COMMITTEE 1319 00:52:14,001 --> 00:52:17,000 TO SPEND THE TIME NECESSARY TO 1320 00:52:17,001 --> 00:52:19,000 THOROUGHLY EXAMINE THE CRISIS 1321 00:52:19,001 --> 00:52:24,000 AND DEVELOP THE BEST POSSIBLE 1322 00:52:24,001 --> 00:52:25,000 LEGISLATION IN RESPONSE. 1323 00:52:25,001 --> 00:52:26,000 UNFORTUNATELY, MADAM PRESIDENT, 1324 00:52:26,001 --> 00:52:29,000 SUCH AN ASSUMPTION WOULD BE 1325 00:52:29,001 --> 00:52:31,000 ENTIRELY UNFOUNDED HERE. 1326 00:52:31,001 --> 00:52:34,000 THE BANKING COMMITTEE NEVER 1327 00:52:34,001 --> 00:52:36,000 PRODUCED A SINGLE REPORT ON OR 1328 00:52:36,001 --> 00:52:38,000 CONDUCTED AN INVESTIGATION INTO 1329 00:52:38,001 --> 00:52:41,000 ANY ASPECT OF THE FINANCIAL 1330 00:52:41,001 --> 00:52:42,000 CRISIS. 1331 00:52:42,001 --> 00:52:43,000 IN CONTRAST, DURING THE GREAT 1332 00:52:43,001 --> 00:52:45,000 DEPRESSION, THE BANKING 1333 00:52:45,001 --> 00:52:48,000 COMMITTEE SET UP AN ENTIRE 1334 00:52:48,001 --> 00:52:50,000 SUBCOMMITTEE TO EXAMINE WHAT 1335 00:52:50,001 --> 00:52:54,000 REGULATORY REFORMS WERE NEEDED. 1336 00:52:54,001 --> 00:52:55,000 THE PECORRA COMMISSION, AS IT 1337 00:52:55,001 --> 00:52:56,000 BECAME TO BE KNOWN, INTERVIEWED 1338 00:52:56,001 --> 00:52:58,000 UNDER OATH THE BIG ACTORS ON 1339 00:52:58,001 --> 00:53:02,000 WALL STREET AND PRODUCED A 1340 00:53:02,001 --> 00:53:04,000 MULTIVOLUME REPORT. 1341 00:53:04,001 --> 00:53:05,000 UNFORTUNATELY, THIS TIME AROUND, 1342 00:53:05,001 --> 00:53:07,000 THE DEMOCRATIC-RUN COMMITTEE 1343 00:53:07,001 --> 00:53:08,000 GAVE WALL STREET EXECUTIVES A 1344 00:53:08,001 --> 00:53:10,000 PASS, I BELIEVE. 1345 00:53:10,001 --> 00:53:12,000 THERE WERE NO INVESTIGATIONS, NO 1346 00:53:12,001 --> 00:53:14,000 DEPOSITIONS, AND NO SUBPOENAS. 1347 00:53:14,001 --> 00:53:17,000 IN FACT, MADAM PRESIDENT, 1348 00:53:17,001 --> 00:53:18,000 CHAIRMAN DODD, MY FRIEND AND 1349 00:53:18,001 --> 00:53:25,000 COLLEAGUE, NEVER CALLED ON THE 1350 00:53:25,001 --> 00:53:29,000 LIKES OF RUBIN, LLOYD 1351 00:53:29,001 --> 00:53:30,000 BLANKENFEIN, OR MOZILLO TO 1352 00:53:30,001 --> 00:53:31,000 TESTIFY BEFORE THE BANK 1353 00:53:31,001 --> 00:53:33,000 COMMITTEE. 1354 00:53:33,001 --> 00:53:34,000 NOT A SINGLE INDIVIDUAL FROM 1355 00:53:34,001 --> 00:53:38,000 A.I.G.'S FINANCIAL PRODUCTS DIVISION WAS QUESTIONED BY THE 1356 00:53:38,001 --> 00:53:40,000 COMMITTEE OR ITS STAFF. 1357 00:53:40,001 --> 00:53:41,000 ALSO CONGRESS DID ESTABLISH THE 1358 00:53:41,001 --> 00:53:44,000 FINANCIAL CRISIS INQUIRY 1359 00:53:44,001 --> 00:53:46,000 COMMISSION, WE DID HERE, TO DO 1360 00:53:46,001 --> 00:53:47,000 THE WORK THE MAJORITY PARTY I 1361 00:53:47,001 --> 00:53:48,000 BELIEVE REFUSED TO DO, THE 1362 00:53:48,001 --> 00:53:50,000 COMMISSION'S WORK WILL NOT BE 1363 00:53:50,001 --> 00:53:53,000 COMPLEED, MADAM PRESIDENT, 1364 00:53:53,001 --> 00:53:55,000 UNTIL THE END OF THIS YEAR. 1365 00:53:55,001 --> 00:53:57,000 MOST AMAZINGLY, THE BANKING 1366 00:53:57,001 --> 00:53:59,000 COMMITTEE DID NOT HOLD EVEN A 1367 00:53:59,001 --> 00:54:01,000 SINGLE HEARING ON THE FINAL BILL 1368 00:54:01,001 --> 00:54:02,000 BEFORE ITS MARKUP. 1369 00:54:02,001 --> 00:54:06,000 THE COMMITTEE NEVER TOOK THE 1370 00:54:06,001 --> 00:54:07,000 TIME TO RECEIVE PUBLIC TESTIMONY 1371 00:54:07,001 --> 00:54:08,000 OR SURVEY EXPERTS ABOUT THE 1372 00:54:08,001 --> 00:54:13,000 LIKELY OUTCOMES THAT THE 1373 00:54:13,001 --> 00:54:14,000 LEGISLATION WOULD PRODUCE. 1374 00:54:14,001 --> 00:54:15,000 WE KNOW THAT THE MAJORITY HEARD 1375 00:54:15,001 --> 00:54:16,000 FROM WALL STREET LOBBYISTS, 1376 00:54:16,001 --> 00:54:19,000 GOVERNMENT REGULATORS, AND 1377 00:54:19,001 --> 00:54:20,000 LIBERAL ACTIVISTS BUT THEY 1378 00:54:20,001 --> 00:54:23,000 CLEARLY DECIDED WHAT THEY DID 1379 00:54:23,001 --> 00:54:24,000 NOT WANT THE AMERICAN PEOPLE TO 1380 00:54:24,001 --> 00:54:26,000 HAVE A CHANCE TO UNDERSTAND AND 1381 00:54:26,001 --> 00:54:28,000 COMMENT ON THEIR BILL, THE BILL 1382 00:54:28,001 --> 00:54:29,000 BEFORE US TODAY, BEFORE IT WAS 1383 00:54:29,001 --> 00:54:30,000 ENACTED. 1384 00:54:30,001 --> 00:54:31,000 THE QUESTION IS WHY. 1385 00:54:31,001 --> 00:54:35,000 THE MAJORITY KNOWS THAT THIS 1386 00:54:35,001 --> 00:54:36,000 LL, I BELIEVE, IS A JOB KILLER 1387 00:54:36,001 --> 00:54:38,000 AND WILL SADDLE AMERICANS WITH 1388 00:54:38,001 --> 00:54:40,000 BILLIO OF DOLLARS OF HIDDEN 1389 00:54:40,001 --> 00:54:41,000 TAXES AND FEES. 1390 00:54:41,001 --> 00:54:43,000 ALLOWING TO PUBLIC TO WEIGH IN 1391 00:54:43,001 --> 00:54:44,000 ON THIS BILL WOULD HAVE SPELLED 1392 00:54:44,001 --> 00:54:46,000 THE END OF THE DEMOCRATIC 1393 00:54:46,001 --> 00:54:48,000 VERSION OF REFORM THAT'S BEFORE 1394 00:54:48,001 --> 00:54:49,000 US TODAY. 1395 00:54:49,001 --> 00:54:51,000 MADAM PRESIDENT, I BELIEVE WE 1396 00:54:51,001 --> 00:54:53,000 OWED MORE TO THOSE WHO LOST 1397 00:54:53,001 --> 00:54:57,000 THEIR JOBS, THEIR HOMES, AND 1398 00:54:57,001 --> 00:54:58,000 THEIR LIFE SAVINGS. 1399 00:54:58,001 --> 00:54:59,000 THIS TRULY I BELIEVE IT WAS A 1400 00:54:59,001 --> 00:55:00,000 MISSED OPPORTUNITY. 1401 00:55:00,001 --> 00:55:03,000 THE DIFFERENCE, MADAM PRESIDENT, 1402 00:55:03,001 --> 00:55:04,000 BETWEEN WHAT WE NEEDED TO DO, 1403 00:55:04,001 --> 00:55:08,000 WHAT WE COULD HAVE DONE AND WHAT 1404 00:55:08,001 --> 00:55:10,000 THE MAJORITY HAS CHOSEN TO DO IS 1405 00:55:10,001 --> 00:55:11,000 CONSIDERABLE AND I WILL SPEAK ON 1406 00:55:11,001 --> 00:55:13,000 THIS. 1407 00:55:13,001 --> 00:55:14,000 CONGRESS COULD HAVE FOCUSED THIS 1408 00:55:14,001 --> 00:55:15,000 LEGISLATION ON FINANCIAL 1409 00:55:15,001 --> 00:55:18,000 STABILITY. 1410 00:55:18,001 --> 00:55:19,000 IT COULD HAVE UTILIZED THE 1411 00:55:19,001 --> 00:55:20,000 FINDINGS OF THE FINANCIAL CRISIS 1412 00:55:20,001 --> 00:55:22,000 INQUIRY COMMISSION. 1413 00:55:22,001 --> 00:55:25,000 INSTEAD, THE DEMOCRATIC MAJORITY 1414 00:55:25,001 --> 00:55:26,000 CHOSE TO ADOPT LEGISLATIVE 1415 00:55:26,001 --> 00:55:28,000 LANGUAGE PENNED BY FEDERAL 1416 00:55:28,001 --> 00:55:29,000 REGULATORS IN SEARCH OF EXPANDED 1417 00:55:29,001 --> 00:55:31,000 SURF. 1418 00:55:31,001 --> 00:55:35,000 THEY CHOSE TO LEGISLATE FOR THE 1419 00:55:35,001 --> 00:55:37,000 POLITICAL FAVOR OF COMMUNITY 1420 00:55:37,001 --> 00:55:38,000 ORGANIZER GROUPS AND LIBERAL 1421 00:55:38,001 --> 00:55:39,000 ACTIVISTS SEEKING EXPANSIVE NEW 1422 00:55:39,001 --> 00:55:41,000 BUREAUCRACIES THAT THEY COULD 1423 00:55:41,001 --> 00:55:43,000 LEVERAGE FOR THEIR OWN POLITICAL ADVANTAGE. 1424 00:55:43,001 --> 00:55:46,000 THE RESULT HERE IS AN ACTIVIST 1425 00:55:46,001 --> 00:55:48,000 BILL THAT HAS LITTLE TO DO, 1426 00:55:48,001 --> 00:55:50,000 MADAM PRESIDENT, WITH THE RECENT 1427 00:55:50,001 --> 00:55:52,000 OR ANY CRISIS AND A LOT TO DO 1428 00:55:52,001 --> 00:55:55,000 WITH EXPANDING THE GOVERNMENT TO 1429 00:55:55,001 --> 00:55:57,000 SATISFY SPECIAL INTERESTSMENT 1430 00:55:57,001 --> 00:56:01,000 CONGRESS COULD HAVE WRITTEN A BILL, MADAM PRESIDENT, TO 1431 00:56:01,001 --> 00:56:03,000 ADDRESS THE PROBLEM OF 1432 00:56:03,001 --> 00:56:05,000 TOO-BIG-TO-FAIL ONCE AND FOR ALL. 1433 00:56:05,001 --> 00:56:06,000 IN FACT, THE SHELBY-DODD 1434 00:56:06,001 --> 00:56:07,000 AMENDMENT BEGAN TO ADDRESS THIS 1435 00:56:07,001 --> 00:56:08,000 PROBLEM RIGHT HERE ON THE FLOOR. 1436 00:56:08,001 --> 00:56:12,000 UNFORTUNATELY, THE DEMOCRATS 1437 00:56:12,001 --> 00:56:13,000 ONCE AGAIN OVERREACHED I BELIEVE 1438 00:56:13,001 --> 00:56:15,000 AT THE 11th HOUR AND 1439 00:56:15,001 --> 00:56:18,000 UNDERMINED THE SERIOUSNESS OF 1440 00:56:18,001 --> 00:56:23,000 OUR EFFORTS BY EMPHASIZING 1441 00:56:23,001 --> 00:56:25,000 SOCIAL ACTIVISM OVER FINANCIAL STABILITY. 1442 00:56:25,001 --> 00:56:26,000 DEMOCRATS INSISTED THAT THE 1443 00:56:26,001 --> 00:56:28,000 OVERALL FINANCIAL STABILITY 1444 00:56:28,001 --> 00:56:30,000 MISSION OF THE FINANCIAL 1445 00:56:30,001 --> 00:56:31,000 STABILITY OVERSIGHT COUNCIL I 1446 00:56:31,001 --> 00:56:33,000 BELIEVE WAS LESS IMPORTANT THAN 1447 00:56:33,001 --> 00:56:34,000 THE POLITICAL NEEDS OF CERTAIN 1448 00:56:34,001 --> 00:56:36,000 PREFERRED CONSTITUENCIES. 1449 00:56:36,001 --> 00:56:39,000 THIS DANGEROUS MIXING OF SOCIAL 1450 00:56:39,001 --> 00:56:41,000 ACTIVISM AND FINANCIAL STABILITY 1451 00:56:41,001 --> 00:56:42,000 FOLLOWS THE ECT SAME MODEL, 1452 00:56:42,001 --> 00:56:45,000 MADAM PRESIDENT, THAT LED US TO 1453 00:56:45,001 --> 00:56:48,000 THE CRISIS IN THE FIRST PLACE; 1454 00:56:48,001 --> 00:56:50,000 THAT IS, PRIVATE ENTERPRISE 1455 00:56:50,001 --> 00:56:52,000 CO-OPTED THROUGH POLITICAL 1456 00:56:52,001 --> 00:56:54,000 MANDATES TO ACHIEVE SOCIAL GOALS. 1457 00:56:54,001 --> 00:56:56,000 FANNIE AND FREDDIE PROVED THAT 1458 00:56:56,001 --> 00:56:58,000 THIS DEFINITION CAN BE HIGHLY 1459 00:56:58,001 --> 00:57:03,000 DESTRUCTIVE. 1460 00:57:03,001 --> 00:57:04,000 CONGRESS COULD HAVE WRITTEN, 1461 00:57:04,001 --> 00:57:06,000 MADAM PRESIDENT, LEGISLATION TO 1462 00:57:06,001 --> 00:57:07,000 ADDRESS KEY ISSUES THAT PLAYED A 1463 00:57:07,001 --> 00:57:09,000 ROLE IN THE RECENT CRISIS. 1464 00:57:09,001 --> 00:57:10,000 ON GOVERNMENT-SPONSORED 1465 00:57:10,001 --> 00:57:12,000 ENTERPRISES, FANNIE AND FREDY, 1466 00:57:12,001 --> 00:57:13,000 THE BILL IS SILEN ASIDE FROM A 1467 00:57:13,001 --> 00:57:17,000 MERE STUDY. 1468 00:57:17,001 --> 00:57:18,000 ON THE TRI-PARTY REPO MARKET, 1469 00:57:18,001 --> 00:57:19,000 THE BILL IS SILENT. 1470 00:57:19,001 --> 00:57:21,000 ON RUNS IN MONEY MARKETS, THE 1471 00:57:21,001 --> 00:57:24,000 BILL IS SILENT. 1472 00:57:24,001 --> 00:57:25,000 ON THE RELIANCE OF MARKET 1473 00:57:25,001 --> 00:57:27,000 PARTICIPANTS ON SHORT-TERM 1474 00:57:27,001 --> 00:57:30,000 COMMERCIAL PAPER FUNDING, THE 1475 00:57:30,001 --> 00:57:32,000 BILL IS SILENT. 1476 00:57:32,001 --> 00:57:34,000 MADAM PRESIDENT, ON MATURITY 1477 00:57:34,001 --> 00:57:36,000 TRANSFORMATIONS THAT ALLOWED THE 1478 00:57:36,001 --> 00:57:39,000 SHADOW BANKING SYSTEM TO 1479 00:57:39,001 --> 00:57:40,000 EFFECTIVELY CREATE MONEY OUT OF 1480 00:57:40,001 --> 00:57:42,000 AAA-RATED SECURITIES, THEREBY 1481 00:57:42,001 --> 00:57:44,000 MAKE THE SYSTEM MUCH MORE 1482 00:57:44,001 --> 00:57:47,000 VULNERABLE, THE BILL IS SILENT. 1483 00:57:47,001 --> 00:57:48,000 ON THE FINANCIAL SYSTEM'S 1484 00:57:48,001 --> 00:57:52,000 OVERALL VULNERABILITY TO 1485 00:57:52,001 --> 00:57:53,000 LIQUIDITY CRISIS -- CRISES, THE 1486 00:57:53,001 --> 00:57:55,000 BILL, AGAIN, IS SILENT. 1487 00:57:55,001 --> 00:57:57,000 MADAM PRESIDENT, WE KNOW WITH 1488 00:57:57,001 --> 00:57:58,000 CERTAINTY THAT ALL OF THESE 1489 00:57:58,001 --> 00:58:00,000 FACTORS, NONE OF WHICH ARE 1490 00:58:00,001 --> 00:58:02,000 ADDRESSED IN THE BILL, WERE 1491 00:58:02,001 --> 00:58:06,000 INTEGRAL TO THE RECENT FINANCIAL CRISIS. 1492 00:58:06,001 --> 00:58:07,000 AND WHILE WE DO NOT WANT TO 1493 00:58:07,001 --> 00:58:09,000 WRITE LEGISLATION THAT ONLY 1494 00:58:09,001 --> 00:58:10,000 DEALS WITH THE LAST CRISIS, WE 1495 00:58:10,001 --> 00:58:12,000 DO WANT TO ENACT A LAW THAT 1496 00:58:12,001 --> 00:58:13,000 ADDRESSES WHAT WE KNOW ARE 1497 00:58:13,001 --> 00:58:14,000 SYSTEMIC PROBLEMS. 1498 00:58:14,001 --> 00:58:15,000 THIS BILL FAILS TO DO SO. 1499 00:58:15,001 --> 00:58:17,000 CONGRESS COULD HAVE WRITTEN A 1500 00:58:17,001 --> 00:58:19,000 BILL TO STREAMLINE REGULATION 1501 00:58:19,001 --> 00:58:21,000 AND ELIMINATE THE GAPS THAT 1502 00:58:21,001 --> 00:58:22,000 FIRMS EXPLOIT IN THE RACE TO THE 1503 00:58:22,001 --> 00:58:26,000 REGULATORY BODY. 1504 00:58:26,001 --> 00:58:27,000 THIS BILL DOES THE OPPOSITE BY 1505 00:58:27,001 --> 00:58:29,000 MAKING OUR FINANCIAL REGULATORY 1506 00:58:29,001 --> 00:58:32,000 SYSTEM EVEN MORE COMPLEX. 1507 00:58:32,001 --> 00:58:37,000 WE WILL STILL HAVE THE FED, THE 1508 00:58:37,001 --> 00:58:39,000 FDIC, THE S.E.C., THE CFTC, THE 1509 00:58:39,001 --> 00:58:40,000 O.C.C. AND THE REMAINDER OF THE 1510 00:58:40,001 --> 00:58:43,000 REGULATORY ALPHABET SOUP. 1511 00:58:43,001 --> 00:58:44,000 IN FACT, MOST OF THE EXISTING 1512 00:58:44,001 --> 00:58:47,000 REGULATORS THAT SO RECENTLY 1513 00:58:47,001 --> 00:58:49,000 FAILED US HAVE BEEN GIVEN 1514 00:58:49,001 --> 00:58:51,000 EXPANDED POWER AND SCOPE. 1515 00:58:51,001 --> 00:58:52,000 THIS BILL ALSO WILL ADD NEW 1516 00:58:52,001 --> 00:58:59,000 LETTERS TO THE ALREADY CONFUSED 1517 00:58:59,001 --> 00:59:00,000 SOUP, SUCH AS CFBP AND O.F.R. 1518 00:59:00,001 --> 00:59:01,000 IN ADDITION TO INCREASED 1519 00:59:01,001 --> 00:59:04,000 REGULATORY COMPLEXITY, THERE 1520 00:59:04,001 --> 00:59:06,000 WILL BE NEW SPECIAL ACTIVT 1521 00:59:06,001 --> 00:59:07,000 OFFICES WITH EACH REGULATOR FOR 1522 00:59:07,001 --> 00:59:10,000 ALMOST EVERY IMAGINABLE SPECIAL 1523 00:59:10,001 --> 00:59:11,000 INTEREST. 1524 00:59:11,001 --> 00:59:14,000 MADAM PRESIDENT, CONGRESS COULD 1525 00:59:14,001 --> 00:59:16,000 HAVE SET UP REASONABLE NEW 1526 00:59:16,001 --> 00:59:18,000 RESEARCH CAPABILITIES IN ITS NEW 1527 00:59:18,001 --> 00:59:19,000 STABILITY OVERSIGHT COUNCIL TO 1528 00:59:19,001 --> 00:59:21,000 COMPLEMENT FINANCIAL RESEARCH 1529 00:59:21,001 --> 00:59:22,000 PERFORMED BY THE FINANCIAL 1530 00:59:22,001 --> 00:59:24,000 RESERVE AND OTHERS. 1531 00:59:24,001 --> 00:59:26,000 INSTEAD, THE DEMOCRATS DECIDED 1532 00:59:26,001 --> 00:59:28,000 TO ESTABLISH THE OFFICE OF 1533 00:59:28,001 --> 00:59:30,000 FINANCIAL RESEARCH WITH AN 1534 00:59:30,001 --> 00:59:32,000 UNCONSTRAINED DIRECTOR AND A 1535 00:59:32,001 --> 00:59:35,000 FOCUS ON BROAD INFORMATION 1536 00:59:35,001 --> 00:59:36,000 COLLECTING AND PROCESSING. 1537 00:59:36,001 --> 00:59:38,000 I BELIEVE THAT THIS OFFICE WILL 1538 00:59:38,001 --> 00:59:41,000 ONLY -- NOT ONLY FAIL TO DETECT 1539 00:59:41,001 --> 00:59:43,000 SYSTEMIC THREATS AND THE ASSET 1540 00:59:43,001 --> 00:59:44,000 PRICE BUBBLES IN THE FUTURE, IT 1541 00:59:44,001 --> 00:59:46,000 WILL THREATEN CIVIL LIBERTIES 1542 00:59:46,001 --> 00:59:47,000 AND THE PRIVACY OF AMERICANS, 1543 00:59:47,001 --> 00:59:50,000 WASTE BILLIONS OF DOLLARS OF 1544 00:59:50,001 --> 00:59:52,000 TAXPAYER RESOURCES, AND LULL 1545 00:59:52,001 --> 00:59:53,000 MARKETS INTO THE FALSE BELIEF 1546 00:59:53,001 --> 00:59:55,000 THAT THE NEW GOVERNMENT POWER 1547 00:59:55,001 --> 00:59:59,000 WILL PROTECT THE FINANCIAL 1548 00:59:59,001 --> 01:00:01,000 SYSTEM FROM RISKY TRADES. 1549 01:00:01,001 --> 01:00:02,000 CONGRESS COULD, MADAM PRESIDENT, 1550 01:00:02,001 --> 01:00:04,000 COULD HAVE BEEN TRANSPARENT IN 1551 01:00:04,001 --> 01:00:05,000 IDENTIFYING THE BILL'S FISCAL 1552 01:00:05,001 --> 01:00:07,000 EFFECTS AND COSTS. 1553 01:00:07,001 --> 01:00:10,000 INSTEAD, THE MAJORITY WROTE A 1554 01:00:10,001 --> 01:00:12,000 BILL THAT HIJACKS TAXPAYER 1555 01:00:12,001 --> 01:00:13,000 RESOURCES BUT HIDES THAT FACT 1556 01:00:13,001 --> 01:00:15,000 FROM PUBLIC VIEW. 1557 01:00:15,001 --> 01:00:17,000 AND JUST AS THE ADMINISTRATION 1558 01:00:17,001 --> 01:00:20,000 REFUSES TO ACKNOWLEDGE TRILLIONS 1559 01:00:20,001 --> 01:00:22,000 OF DOLLARS OF CONTINGENT 1560 01:00:22,001 --> 01:00:26,000 TAXPAYER LIABILITIES RESIDING 1561 01:00:26,001 --> 01:00:27,000 WITH FANNIE AND FREDDIE, THIS 1562 01:00:27,001 --> 01:00:29,000 BILL PROVIDES AMERICANS WITH A 1563 01:00:29,001 --> 01:00:32,000 TRANSPARENT VIEW OF THE COST OF 1564 01:00:32,001 --> 01:00:33,000 THE NEW MULTIBILLION-DOLLAR 1565 01:00:33,001 --> 01:00:34,000 CONSUMER PROTECTION BUREAUCRACY. 1566 01:00:34,001 --> 01:00:37,000 ACCORDING TO THE REPORT ON THE 1567 01:00:37,001 --> 01:00:39,000 BILL OFFERED BY THE MAJORITY, 1568 01:00:39,001 --> 01:00:42,000 THE CONSUMER BUREAUCRACY'S 1569 01:00:42,001 --> 01:00:44,000 BUDGET IS, AND I QUOTE -- "PAID 1570 01:00:44,001 --> 01:00:45,000 FOR BYHE FEDERAL RESERVE 1571 01:00:45,001 --> 01:00:47,000 SYSTEM." 1572 01:00:47,001 --> 01:00:49,000 MADAM PRESIDENT, MAKE NO 1573 01:00:49,001 --> 01:00:52,000 MISTAKE, PAID FOR BY THE HE FED 1574 01:00:52,001 --> 01:00:53,000 MEANS PAID FOR ULTIMATELY BY THE TAXPAYERS. 1575 01:00:53,001 --> 01:00:56,000 TAXPAYERS WILL BE ON THE HOOK 1576 01:00:56,001 --> 01:00:58,000 FOR BILLIONS OF DOLLARS OF 1577 01:00:58,001 --> 01:01:00,000 UNCHECKED, UNENCUMBERED AND 1578 01:01:00,001 --> 01:01:03,000 UNAPPROPRIATED SPENDING FINANCED 1579 01:01:03,001 --> 01:01:05,000 BY THE INFLATIONARY MONEY 1580 01:01:05,001 --> 01:01:06,000 PRINTING AUTHORITY OF THE FEDERAL RESERVE WHICH WILL BE 1581 01:01:06,001 --> 01:01:10,000 HIDDEN FROM THE AMERICAN PEOPLE 1582 01:01:10,001 --> 01:01:11,000 IN THE ARCANE FEDERAL BUDGET. 1583 01:01:11,001 --> 01:01:14,000 CONGRESS COULD, MADAM PRESIDENT, 1584 01:01:14,001 --> 01:01:16,000 HAVE ALSO USED THIS LEGISLATIVE 1585 01:01:16,001 --> 01:01:20,000 OPPORTUNITY TO BEGIN THEROCESS 1586 01:01:20,001 --> 01:01:22,000 OF REFORMING THE FAILED MORTGAGE 1587 01:01:22,001 --> 01:01:23,000 GIANTS FANNIE AND FREDDIE WHOSE 1588 01:01:23,001 --> 01:01:24,000 EVER-GROWING BAILOUTS HAVE NO 1589 01:01:24,001 --> 01:01:26,000 UPPER LIMIT. 1590 01:01:26,001 --> 01:01:28,000 WHEN IT BECAME CLEAR THIS SYSTEM 1591 01:01:28,001 --> 01:01:29,000 WAS NOT THE INTENTION OF THE 1592 01:01:29,001 --> 01:01:30,000 DEMOCRATS, REPUBLICANS SOUGHT TO 1593 01:01:30,001 --> 01:01:32,000 ADDRESS THE CURRENT AND 1594 01:01:32,001 --> 01:01:33,000 WORSENING CONDITIONS OF THE 1595 01:01:33,001 --> 01:01:36,000 S.E.'S. 1596 01:01:36,001 --> 01:01:37,000 WE ESTABLISHED -- WE SUGGESTED 1597 01:01:37,001 --> 01:01:39,000 ESTABLISHING TAXPAYER 1598 01:01:39,001 --> 01:01:41,000 PROTECTIONS SUCH AS PORTFOLIO 1599 01:01:41,001 --> 01:01:44,000 CAPS ON THE MORTGAGE GIANTS. 1600 01:01:44,001 --> 01:01:47,000 WE RECOMMENDED MAKING THE COSTS 1601 01:01:47,001 --> 01:01:48,000 OF FANNIE AND FREDDIE BAILOUTS 1602 01:01:48,001 --> 01:01:49,000 TRANSPARENT TO THE PUBLIC, THAT 1603 01:01:49,001 --> 01:01:51,000 IS TO THE TAXPAYER. 1604 01:01:51,001 --> 01:01:55,000 WE OFFERED INITIAL STEPS TOWARD 1605 01:01:55,001 --> 01:01:57,000 THE NEVER -- INEVITABLE 1606 01:01:57,001 --> 01:01:59,000 UNWINDING OF THESE INSTITUTIONS. 1607 01:01:59,001 --> 01:02:01,000 YET, MADAM PRESIDENT, AT ERY 1608 01:02:01,001 --> 01:02:03,000 TURN THE DEMOCRATIC MAJORITY 1609 01:02:03,001 --> 01:02:04,000 BLOCKED EFFORTS FOR AT LEAST 1610 01:02:04,001 --> 01:02:07,000 ESTABLISHING REFORM HERE. 1611 01:02:07,001 --> 01:02:11,000 THE DEMOCRATS PREFER APPROACHING 1612 01:02:11,001 --> 01:02:13,000 THIS BILL IN REFORMING THE 1613 01:02:13,001 --> 01:02:14,000 MORTGAGE GIANTS IS A STAY. 1614 01:02:14,001 --> 01:02:16,000 LET ME REPEAT THAT NOTION. 1615 01:02:16,001 --> 01:02:18,000 IN ORDER TO ADDRESS A BAILOUT 1616 01:02:18,001 --> 01:02:20,000 THAT HAS ALREADY COST AMERICAN 1617 01:02:20,001 --> 01:02:22,000 TAXPAYERS ROUGHLY $150 MILLION 1618 01:02:22,001 --> 01:02:26,000 TO DATE WITH UNLIMITED FUTURE 1619 01:02:26,001 --> 01:02:28,000 TAXPAYER EXPOSURE, THE DEMOCRATS PROPOSED A STUDY. 1620 01:02:28,001 --> 01:02:32,000 IT DOES NOT TAKE A STUDY TO 1621 01:02:32,001 --> 01:02:33,000 DETERMINE, MADAM PRESIDENT, 1622 01:02:33,001 --> 01:02:35,000 THAT $150 BILLION IN UNLIMITED 1623 01:02:35,001 --> 01:02:37,000 LOSS EXPOSURE NEEDS TO BE 1624 01:02:37,001 --> 01:02:38,000 ADDRESSED IMMEDIATELY, NOW. 1625 01:02:38,001 --> 01:02:40,000 CONGRESS COULD HAVE FOCUSED, 1626 01:02:40,001 --> 01:02:42,000 MADAM PRESIDENT, ON SECURITIES 1627 01:02:42,001 --> 01:02:44,000 MARKET PRACTICES THAT WERE KNOWN 1628 01:02:44,001 --> 01:02:47,000 TO HAVE CONTRIBUTED TO SYSTEMIC 1629 01:02:47,001 --> 01:02:49,000 RISK IN OUR FINANCIAL SYSTEM. 1630 01:02:49,001 --> 01:02:50,000 AGAIN, DEMOCRATS OVERREACHED, I 1631 01:02:50,001 --> 01:02:52,000 BELIEVE, ONCE AGAIN. 1632 01:02:52,001 --> 01:02:54,000 FOR EXAMPLE, THE BILL GIVES THE SECURITIES AND EXCHANGE 1633 01:02:54,001 --> 01:02:56,000 COMMISSION, WHICH HAS FAILED TO 1634 01:02:56,001 --> 01:03:00,000 CARRY OUT ITS EXISTING MANDATES, 1635 01:03:00,001 --> 01:03:02,000 A NEW SYSTEMIC RISK MANDATE TO 1636 01:03:02,001 --> 01:03:04,000 OVERSEE ADVISORS TO HEDGE FUNDS 1637 01:03:04,001 --> 01:03:06,000 AND PRIVATE EQUITY FUNDS. 1638 01:03:06,001 --> 01:03:07,000 YET, NO ONE CONTENDS THAT 1639 01:03:07,001 --> 01:03:09,000 PRIVATE FUNDS WERE A CAUSE OF 1640 01:03:09,001 --> 01:03:11,000 THE RECENT CRISIS OR THAT THE 1641 01:03:11,001 --> 01:03:15,000 DEMISE OF ANY PRIVATE FUND 1642 01:03:15,001 --> 01:03:17,000 DURING THE CRISIS RESULTED IN A 1643 01:03:17,001 --> 01:03:18,000 SYSTEMWIDE SHOCK. 1644 01:03:18,001 --> 01:03:20,000 CONGRESS COULD HAVE ACTED, MADAM 1645 01:03:20,001 --> 01:03:22,000 PRESIDENT, TO CURTAIL WALL 1646 01:03:22,001 --> 01:03:26,000 STREET'S SPECULATIVE EXCESSES 1647 01:03:26,001 --> 01:03:28,000 AND ENHANCE MAIN STREET ACCESS 1648 01:03:28,001 --> 01:03:30,000 TO CREDIT, BUT INSTEAD HERE IN 1649 01:03:30,001 --> 01:03:31,000 THIS BILL LARGE FINANCIAL FIRMS 1650 01:03:31,001 --> 01:03:33,000 ON WALL STREET SEEM TO HAVE BENEFITED. 1651 01:03:33,001 --> 01:03:34,000 JUDGING BY THE BEHAVIOR OF THEIR 1652 01:03:34,001 --> 01:03:36,000 STOCK PRICES WHILE THE 1653 01:03:36,001 --> 01:03:38,000 LEGISLATION ALMOST SURELY WILL 1654 01:03:38,001 --> 01:03:40,000 INCREASE UNCERTAINTIES AND COSTS 1655 01:03:40,001 --> 01:03:41,000 FOR MAIN STREET AND AMERICA'S 1656 01:03:41,001 --> 01:03:43,000 JOB CREATORS. 1657 01:03:43,001 --> 01:03:45,000 MADAM PRESIDENT, THE ACTUAL 1658 01:03:45,001 --> 01:03:46,000 PROVISIONS IN THE BILL WILL 1659 01:03:46,001 --> 01:03:48,000 BENEFIT BIG WALL STREET 1660 01:03:48,001 --> 01:03:49,000 INSTITUTIONS BECAUSE THEY 1661 01:03:49,001 --> 01:03:52,000 SUBSTANTIALLY INCREASE THE 1662 01:03:52,001 --> 01:03:53,000 AMOUNT AND COSTS OF FINANCIAL REGULATION. 1663 01:03:53,001 --> 01:03:55,000 ONLY LARGE FINANCIAL 1664 01:03:55,001 --> 01:03:57,000 INSTITUTIONS WILL HAVE THE 1665 01:03:57,001 --> 01:03:59,000 RESOURCES TO NAVIGATE ALL OF THE 1666 01:03:59,001 --> 01:04:01,000 NEW LAWS AND REGULATIONS THAT 1667 01:04:01,001 --> 01:04:04,000 THIS LEGISLATION WILL GENERATE. 1668 01:04:04,001 --> 01:04:05,000 AS A RESULT, THIS BILL, I 1669 01:04:05,001 --> 01:04:07,000 BELIEVE, DISPROPORTIONATELY WILL 1670 01:04:07,001 --> 01:04:08,000 HURT SMALL AND MEDIUM-SIZED 1671 01:04:08,001 --> 01:04:09,000 BANKS WHICH HAD NOTHING TO DO 1672 01:04:09,001 --> 01:04:12,000 WITH THE CRISIS. 1673 01:04:12,001 --> 01:04:14,000 AND MADAM PRESIDENT, WHILE THE 1674 01:04:14,001 --> 01:04:15,000 LARGEST FINANCIAL INSTITUTIONS 1675 01:04:15,001 --> 01:04:17,000 GET SPECIAL REGULATION UNDER 1676 01:04:17,001 --> 01:04:19,000 THIS BILL, THE UNINTENDED RESULT 1677 01:04:19,001 --> 01:04:20,000 WILL BE LOWER FUNDING COSTS FOR 1678 01:04:20,001 --> 01:04:21,000 THESE FIRMS. 1679 01:04:21,001 --> 01:04:23,000 THAT WILL BENEFIT THE BIG BANKS 1680 01:04:23,001 --> 01:04:24,000 AND HURT THE SMALL BANKS. 1681 01:04:24,001 --> 01:04:27,000 THEREFORE, THIS BILL WILL RESULT 1682 01:04:27,001 --> 01:04:28,000 IN HIGHER FEES, LESS CHOICE, AND 1683 01:04:28,001 --> 01:04:31,000 FEWER OPPORTUNITIES TO 1684 01:04:31,001 --> 01:04:32,000 RESPONSIBLY OBTAIN CREDIT FOR 1685 01:04:32,001 --> 01:04:34,000 BLAMELESS CONSUMERS. 1686 01:04:34,001 --> 01:04:37,000 MOREOVER, THIS BILL RAISES 1687 01:04:37,001 --> 01:04:39,000 TAXES, WHICH ASE ALL KNOW 1688 01:04:39,001 --> 01:04:41,000 ULTIMATELY ARE BORNE BY CONSUMERS. 1689 01:04:41,001 --> 01:04:42,000 MAKE NO MISTAKE, WHEN WALL 1690 01:04:42,001 --> 01:04:44,000 STREET WRITES A CHECK TO PAY 1691 01:04:44,001 --> 01:04:45,000 HIGHER TAXES, THE ONES THAT END 1692 01:04:45,001 --> 01:04:48,000 UP PAYING THOSE TAXES ARE 1693 01:04:48,001 --> 01:04:51,000 AMERICAN CONSUMERS AND WKERS. 1694 01:04:51,001 --> 01:04:53,000 MADAM PRESIDENT, CONGRESS COULD 1695 01:04:53,001 --> 01:04:54,000 HAVE WRITTEN LEGISLATION FOR 1696 01:04:54,001 --> 01:04:55,000 CONSUMER PROTECTION THAT 1697 01:04:55,001 --> 01:04:58,000 RESPECTS BOTH AMERICAN CONSUMERS 1698 01:04:58,001 --> 01:05:00,000 AND THE NEED FOR SAFETY AND 1699 01:05:00,001 --> 01:05:03,000 SOUNDNESS IN OUR FINANCIAL SYSTEM. 1700 01:05:03,001 --> 01:05:05,000 INSTEAD, THE DODD-FRANK BILL WAS 1701 01:05:05,001 --> 01:05:11,000 BASICALLY CONSTRUCTED BY ARCHITECTS IN THE TREASURY 1702 01:05:11,001 --> 01:05:13,000 DEPARTMENT WHO HAVE A CERTAIN 1703 01:05:13,001 --> 01:05:14,000 CONDESCENSION, I BELIEVE, FOR 1704 01:05:14,001 --> 01:05:15,000 AMERICAN CONSUMERS AND THEIR CHOICES. 1705 01:05:15,001 --> 01:05:17,000 THE ULTIMATE GOAL IS TO 1706 01:05:17,001 --> 01:05:18,000 SUBSTITUTEHE JUDGMENT OF A 1707 01:05:18,001 --> 01:05:20,000 BENEFIT HE HAVE LEAPT BUREAUCRAT 1708 01:05:20,001 --> 01:05:25,000 FOR THAT OF THE AMERICAN 1709 01:05:25,001 --> 01:05:27,000 CONSUMER, THEREBY CONTROLLING 1710 01:05:27,001 --> 01:05:29,000 CONSUMER BEHAVIOR WITHOUT REGARD 1711 01:05:29,001 --> 01:05:30,000 FOR THE SAFETY AND SOUNDNESS OF 1712 01:05:30,001 --> 01:05:32,000 OUR BANKING SYSTEM. 1713 01:05:32,001 --> 01:05:34,000 THE AMERICAN PEOPLE, I BELIEVE, 1714 01:05:34,001 --> 01:05:36,000 DAM PRESIDENT, ARE BEING TOLD 1715 01:05:36,001 --> 01:05:39,000 NOT TO WORRY, HOWEVER, BECAUSE 1716 01:05:39,001 --> 01:05:40,000 IT'S ALL BEING DONE FOR THEIR 1717 01:05:40,001 --> 01:05:42,000 OWN GOOD. 1718 01:05:42,001 --> 01:05:44,000 AND WHILE A CONSUMER PROTECTION 1719 01:05:44,001 --> 01:05:46,000 AGENCY MIGHT SOUND LIKE A GOOD 1720 01:05:46,001 --> 01:05:50,000 IDEA, THE WAY IT'S CONSTRUCTED 1721 01:05:50,001 --> 01:05:52,000 IN THIS BILL WILL SLOW ECONOMIC 1722 01:05:52,001 --> 01:05:54,000 GROWTH AND KILL JOBS, I BELIEVE, 1723 01:05:54,001 --> 01:05:55,000 BY IMPOSING MASSIVE NEW 1724 01:05:55,001 --> 01:05:57,000 REGULATORY BURDENS ON BUSINESSES 1725 01:05:57,001 --> 01:06:00,000 LARGE AND SMALL. 1726 01:06:00,001 --> 01:06:01,000 IT WILL STIFLE INNOVATION IN 1727 01:06:01,001 --> 01:06:03,000 CONSUMER FINANCIAL PRODUCTS AND 1728 01:06:03,001 --> 01:06:05,000 IT WILL REDUCE SMALL BUSINESS ACTIVITY. 1729 01:06:05,001 --> 01:06:07,000 IT WILL LEAD TO REDUCED CONSUMER 1730 01:06:07,001 --> 01:06:08,000 CREDIT AND HIGHER COSTS FOR 1731 01:06:08,001 --> 01:06:09,000 AVAILABLE CREDIT. 1732 01:06:09,001 --> 01:06:11,000 LESS CREDIT AT A HIGR PRICE 1733 01:06:11,001 --> 01:06:14,000 WILL DAMPEN THE VERY SMALL 1734 01:06:14,001 --> 01:06:16,000 BUSINESS ENGINE OF JOB CREATION 1735 01:06:16,001 --> 01:06:17,000 THAT OUR ECONOMY DESPERATELY 1736 01:06:17,001 --> 01:06:20,000 NEEDS RIGHT NOW. 1737 01:06:20,001 --> 01:06:22,000 THAT IS A PRICE I'M NOT WILLING TO PAY. 1738 01:06:22,001 --> 01:06:24,000 CONGRESS COULD, MADAM PRESIDENT, 1739 01:06:24,001 --> 01:06:26,000 COULD HAVE IMPLEMENTED REFORMS 1740 01:06:26,001 --> 01:06:27,000 TO IMPROVE DERIVATIVES MARKET 1741 01:06:27,001 --> 01:06:29,000 ACTIVITIES. 1742 01:06:29,001 --> 01:06:30,000 INSTEAD, THE BILL'S DERIVATIVE 1743 01:06:30,001 --> 01:06:32,000 TITLE SEEMS TO HAVE BEEN 1744 01:06:32,001 --> 01:06:33,000 INSPIRED BY THE DESIRE TO BE 1745 01:06:33,001 --> 01:06:34,000 PUNITIVE OR TO PROVIDE 1746 01:06:34,001 --> 01:06:35,000 SHORT-TERM POLITICAL SUPPORT 1747 01:06:35,001 --> 01:06:37,000 DURING AN ELECTION OR BOTH. 1748 01:06:37,001 --> 01:06:39,000 INSTEAD OF IMPOSING A RATIONAL 1749 01:06:39,001 --> 01:06:41,000 AND EFFECTIVE REGULATORY 1750 01:06:41,001 --> 01:06:43,000 FRAMEWORK ON THE O.T.C. 1751 01:06:43,001 --> 01:06:45,000 DERIVATIVES MARKET, THE BILL 1752 01:06:45,001 --> 01:06:47,000 RUNS ROUGHSHOD OVER THE MAIN 1753 01:06:47,001 --> 01:06:48,000 STREET BUSINESSES THAT USE 1754 01:06:48,001 --> 01:06:49,000 DERIVATIVES TO PROTECT 1755 01:06:49,001 --> 01:06:51,000 THEMSELVES EVERY DAY. 1756 01:06:51,001 --> 01:06:53,000 MADAM PRESIDENT, THE DODD-FRANK 1757 01:06:53,001 --> 01:06:56,000 BILL WILL INCREASE COMPANIES' 1758 01:06:56,001 --> 01:06:57,000 COSTS AND LIMIT THEIR ACCESS TO 1759 01:06:57,001 --> 01:06:59,000 RISK-MITIGATING DERIVATIVES 1760 01:06:59,001 --> 01:07:00,000 WITHOUT MAKING OUR FINANCIAL 1761 01:07:00,001 --> 01:07:02,000 SYSTEM SAFER IN THE PROCESS. 1762 01:07:02,001 --> 01:07:04,000 AS A RESULT, THERE WILL BE FEWER 1763 01:07:04,001 --> 01:07:05,000 OPPORTUNITIES FOR BUSINESSES TO 1764 01:07:05,001 --> 01:07:07,000 GROW, FEWER JOBS FOR THE 1765 01:07:07,001 --> 01:07:08,000 UNEMPLOYED AND HIGHER PRICES FOR 1766 01:07:08,001 --> 01:07:10,000 CONSUMERS. 1767 01:07:10,001 --> 01:07:12,000 CONGRESS COULD, MADAM PRESIDENT, 1768 01:07:12,001 --> 01:07:15,000 HAVE WRITTEN A BILL TO PUT AN 1769 01:07:15,001 --> 01:07:17,000 END TO OVERRELIANCE ON CREDIT 1770 01:07:17,001 --> 01:07:19,000 RATING AGENCIES AND 1771 01:07:19,001 --> 01:07:20,000 UNDERRELIANCE ON THEIR OWN DUE DILIGENCE. 1772 01:07:20,001 --> 01:07:22,000 INSTEAD, THE DODD-FRANK BILL 1773 01:07:22,001 --> 01:07:23,000 SETS UP NEW REGULATIONS AND 1774 01:07:23,001 --> 01:07:25,000 LIABILITY PROVISIONS TO GIVE THE 1775 01:07:25,001 --> 01:07:26,000 IMPRESSION THAT RATINGS ARE 1776 01:07:26,001 --> 01:07:28,000 ACCURATE. 1777 01:07:28,001 --> 01:07:29,000 IT THEN TAKES A CONTRADICTORY 1778 01:07:29,001 --> 01:07:31,000 DIRECTION AND INSTRUCTS 1779 01:07:31,001 --> 01:07:32,000 REGULATORS TO REPLACE REFERENCES 1780 01:07:32,001 --> 01:07:34,000 TO RATINGS WITH OTHER STANDARDS 1781 01:07:34,001 --> 01:07:36,000 OF CREDITWORTHINES 1782 01:07:36,001 --> 01:07:37,000 TO MAKE MATTERS EVEN MORE 1783 01:07:37,001 --> 01:07:38,000 CONFUSING, THE BILL ALSO 1784 01:07:38,001 --> 01:07:41,000 PROVIDES FOR T ESTABLISHMENT 1785 01:07:41,001 --> 01:07:42,000 OF A GOVERNMENT-SPONSORED BODY 1786 01:07:42,001 --> 01:07:45,000 THAT WILL SELECT A CREDIT RATING 1787 01:07:45,001 --> 01:07:46,000 AGENCY TO PERFORM AN INITIAL 1788 01:07:46,001 --> 01:07:48,000 RATING OF SECURITY ISSUE. 1789 01:07:48,001 --> 01:07:50,000 I ANTICIPATE THAT THE NET EFFECT 1790 01:07:50,001 --> 01:07:52,000 OF THESE CONFLICTING PROVISIONS 1791 01:07:52,001 --> 01:07:55,000 WILL BE A REDUTION IN 1792 01:07:55,001 --> 01:07:57,000 COMPETITION AMONG CREDIT RATING 1793 01:07:57,001 --> 01:07:58,000 AGENCIES AND POTENTIAL 1794 01:07:58,001 --> 01:07:59,000 COMPETITORS EITHER WILL BE 1795 01:07:59,001 --> 01:08:00,000 DETERRED BY ALL OF THE NEW 1796 01:08:00,001 --> 01:08:02,000 REGULATORY REQUIREMENTS OR BE 1797 01:08:02,001 --> 01:08:03,000 DESTROYED BY THE LIABILITY 1798 01:08:03,001 --> 01:08:05,000 PROVISIONS SET UP IN THE BILL. 1799 01:08:05,001 --> 01:08:06,000 THE LACK OF COMPETITION LED TO 1800 01:08:06,001 --> 01:08:08,000 POOR QUALITY RATINGS IN THE 1801 01:08:08,001 --> 01:08:10,000 RUNUP TO THE CRISIS. 1802 01:08:10,001 --> 01:08:12,000 THIS BILL PERPETUATES AND IN 1803 01:08:12,001 --> 01:08:13,000 FACT WORSENS THAT PROBLEM. 1804 01:08:13,001 --> 01:08:15,000 MADAM PRESIDENT, THE CONGRESS 1805 01:08:15,001 --> 01:08:17,000 COULD HAVE EASED REGULATORY 1806 01:08:17,001 --> 01:08:18,000 BURDENS ON SMALL AND BEAD 1807 01:08:18,001 --> 01:08:20,000 YUM-SIZED BUSINESSES THAT ARE 1808 01:08:20,001 --> 01:08:22,000 NOT INTEGRAL TO THE RECENT 1809 01:08:22,001 --> 01:08:24,000 CRISIS OR ANY CRISIS. 1810 01:08:24,001 --> 01:08:26,000 INSTEAD, MAIN STREET 1811 01:08:26,001 --> 01:08:28,000 CORPORATIONS WILL BE SUBJECT TO 1812 01:08:28,001 --> 01:08:29,000 A PANOPLY OF NEW CORPORATE GOVERNANCE AND EXECUTIVE 1813 01:08:29,001 --> 01:08:30,000 COMPENSATION REQUIREMENTS. 1814 01:08:30,001 --> 01:08:32,000 THESE NEW REQUIREMENTS WILL BE 1815 01:08:32,001 --> 01:08:35,000 COSTLY AND POTENTIALLY HARMFUL 1816 01:08:35,001 --> 01:08:36,000 TO SHAREHOLDERS BECAUSE THEY 1817 01:08:36,001 --> 01:08:38,000 EMPOWER SPECIAL INTERESTS AND 1818 01:08:38,001 --> 01:08:39,000 ENCOURAGE SHORT-TERM THINKING BY 1819 01:08:39,001 --> 01:08:40,000 MANAGERS. 1820 01:08:40,001 --> 01:08:42,000 THESE FEATURES WERE INCLUDED 1821 01:08:42,001 --> 01:08:44,000 SOLELY FOR THE PURPOSE OF 1822 01:08:44,001 --> 01:08:45,000 APIECING UNIONS AND OTHER 1823 01:08:45,001 --> 01:08:47,000 SPECIAL INTEREST LOBBYISTS, AND 1824 01:08:47,001 --> 01:08:52,000 THERE IS NO DEMONSTRATED LINK 1825 01:08:52,001 --> 01:08:53,000 BETWEEN THESE CHANGES AND THE 1826 01:08:53,001 --> 01:08:56,000 ENHANCED STABILITY OF OUR 1827 01:08:56,001 --> 01:08:58,000 FINANCIAL SYSTEM, OUR IMPROVED INVESTOR PROTECTION. 1828 01:08:58,001 --> 01:08:59,000 WE'RE GETTING TOWARD THE END HERE. 1829 01:08:59,001 --> 01:09:01,000 CONGRESS COULD HAVE HELD 1830 01:09:01,001 --> 01:09:02,000 HEARINGS OR ANALYZED A NUMBER OF 1831 01:09:02,001 --> 01:09:04,000 CHANGES THAT THIS BILL MAKES TO 1832 01:09:04,001 --> 01:09:05,000 THE SECURITIES LAWS. 1833 01:09:05,001 --> 01:09:06,000 INSTEAD, DRAMATIC CHANGES INHE 1834 01:09:06,001 --> 01:09:10,000 LAWS WERE WRITTEN WITH LITTLE 1835 01:09:10,001 --> 01:09:11,000 DISCUSSION AND NO ANALYSIS. 1836 01:09:11,001 --> 01:09:13,000 MADAM PRESIDENT, THROUGHOUT THIS 1837 01:09:13,001 --> 01:09:14,000 PROCESS, THERE HAS BEE A LOT OF 1838 01:09:14,001 --> 01:09:16,000 TALK ABOUT THE INFLUENCE OF WALL 1839 01:09:16,001 --> 01:09:18,000 STREET ON THIS BILL. 1840 01:09:18,001 --> 01:09:19,000 TO BE SURE, IN THE EARLY STAGES 1841 01:09:19,001 --> 01:09:21,000 OF NEGOTIATIONS, WALL STREET AND 1842 01:09:21,001 --> 01:09:23,000 THE BIG BANKS WERE VERY ENGAGED. 1843 01:09:23,001 --> 01:09:25,000 I THINK THE AMERICAN PEOPLE 1844 01:09:25,001 --> 01:09:26,000 KNOW, HOWEVER, THAT IN THE END, 1845 01:09:26,001 --> 01:09:28,000 THE REAL INFLUENCE PEDDLERS ON 1846 01:09:28,001 --> 01:09:30,000 THIS BILL WERE NOT WALL STREET 1847 01:09:30,001 --> 01:09:32,000 LOBBYISTS BUT RATHER LIBERAL 1848 01:09:32,001 --> 01:09:33,000 ACTIVISTS AND WASHINGTON BUREAUCRATS. 1849 01:09:33,001 --> 01:09:36,000 WALL STREET AND THE BIG BANKS 1850 01:09:36,001 --> 01:09:38,000 JUST HAPPEN TO BE THE INCIDENTAL 1851 01:09:38,001 --> 01:09:39,000 BENEFICIARIES OF THEIR SUCCESS. 1852 01:09:39,001 --> 01:09:43,000 WHEN CHAIRMAN DODD AND I BEGAN 1853 01:09:43,001 --> 01:09:44,000 THIS PROCESS, WE AGREED THAT THE 1854 01:09:44,001 --> 01:09:45,000 BUREAUCRATIC STATUS QUO WAS 1855 01:09:45,001 --> 01:09:46,000 UNACCEPTABLE AND THAT RADICAL 1856 01:09:46,001 --> 01:09:49,000 CHANGES WERE NECESSARY, AND WITH 1857 01:09:49,001 --> 01:09:51,000 THAT IN MIND, WE AGREED TO 1858 01:09:51,001 --> 01:09:52,000 CONSOLIDATE ALL THE FINANCIAL 1859 01:09:52,001 --> 01:09:54,000 REGULATORS AND CONSTRAIN THE FED 1860 01:09:54,001 --> 01:09:56,000 TO ITS MONETARY POLICY ROLE. 1861 01:09:56,001 --> 01:09:57,000 THIS WAS NOT A RESULT THE BIG 1862 01:09:57,001 --> 01:10:01,000 BANKS WANTED. 1863 01:10:01,001 --> 01:10:02,000 THE LAST THING A LARGE 1864 01:10:02,001 --> 01:10:04,000 REGULATING FINANCIAL INSTITUTION 1865 01:10:04,001 --> 01:10:06,000 WANTS IS A NEW REGULATOR. 1866 01:10:06,001 --> 01:10:07,000 AFTER ALL, THEY SPENT YEARS AND 1867 01:10:07,001 --> 01:10:09,000 MILLIONS OF DOLLARS DEVELOPING A 1868 01:10:09,001 --> 01:10:10,000 RELATIONSHIP WITH THEIR CURRENT 1869 01:10:10,001 --> 01:10:11,000 REGULATORS. 1870 01:10:11,001 --> 01:10:12,000 A MAJOR REGULATORY ORGANIZATION 1871 01:10:12,001 --> 01:10:14,000 WOULD HAVE SERIOUSLY UPSET THE 1872 01:10:14,001 --> 01:10:15,000 STATUS QUO AND COST THEM A GREAT 1873 01:10:15,001 --> 01:10:18,000 DEAL OF MONEY. 1874 01:10:18,001 --> 01:10:20,000 NEITHER CHAIRMAN DODD NOR I WERE 1875 01:10:20,001 --> 01:10:22,000 PERSUADED, HOWEVER, THAT THE 1876 01:10:22,001 --> 01:10:24,000 NECESSARY CHANGE WAS GOING TO COME. 1877 01:10:24,001 --> 01:10:25,000 UNFORTUNATY, THAT PROVISION OF 1878 01:10:25,001 --> 01:10:27,000 REFORM AGAIN DENIES THE 1879 01:10:27,001 --> 01:10:28,000 BUREAUCRATS AND THE LIBERAL LEFT 1880 01:10:28,001 --> 01:10:30,000 BEGIN TO EXERCISE THEIR 1881 01:10:30,001 --> 01:10:31,000 INFLUENCE OVER THE BILL. 1882 01:10:31,001 --> 01:10:33,000 WHEN IT BECAME APPARENT THAT I 1883 01:10:33,001 --> 01:10:35,000 WAS NOT WILLING TO EMBRACE THE 1884 01:10:35,001 --> 01:10:37,000 LEFT'S EXPANSIVE CONSUMER 1885 01:10:37,001 --> 01:10:38,000 BUREAUACY, IT ALSO BECAME 1886 01:10:38,001 --> 01:10:39,000 APPARENT THAT ACTUAL REGULATORY 1887 01:10:39,001 --> 01:10:41,000 REFORM WAS NOT WHAT THE MAJORITY 1888 01:10:41,001 --> 01:10:42,000 WAS SEEKING. 1889 01:10:42,001 --> 01:10:44,000 ALL OTHER SERIOUS REFORM WAS 1890 01:10:44,001 --> 01:10:46,000 SCUTTLED BY THE DEMOCRATS IN 1891 01:10:46,001 --> 01:10:49,000 DEFENSE OF THE NEW CONSUMER BUREAUCRACY. 1892 01:10:49,001 --> 01:10:50,000 THAT WAS THE POINT AT WHICH 1893 01:10:50,001 --> 01:10:53,000 CHAIRMAN DODD AND I BEGAN TO 1894 01:10:53,001 --> 01:10:54,000 SEEK A NEW NEGOTIATION -- 1895 01:10:54,001 --> 01:10:56,000 NEGOTIATING PARTNER, ULTIMATELY 1896 01:10:56,001 --> 01:10:58,000 TO NO AVAIL. 1897 01:10:58,001 --> 01:11:00,000 AS THE FED AND OTHER REGULATORS 1898 01:11:00,001 --> 01:11:03,000 BEGAN TO REGAIN THEIR FOOTHOLD 1899 01:11:03,001 --> 01:11:05,000 WITH THE DEMOCRATS AND THE 1900 01:11:05,001 --> 01:11:06,000 ADMINISTRATION LEFT 1901 01:11:06,001 --> 01:11:08,000 COOLIDATED, IT SUPPORTED 1902 01:11:08,001 --> 01:11:10,000 AROUND AN EXPANSIVE NEW BUREAUCRACY. 1903 01:11:10,001 --> 01:11:13,000 ALL THE DEMOCRATS WILL SUCCEED 1904 01:11:13,001 --> 01:11:16,000 IN DOING WITH THE HP OF 1905 01:11:16,001 --> 01:11:18,000 REPUBLICANS IS TO GIVE THE 1906 01:11:18,001 --> 01:11:19,000 FAILED BUREAUCRACIES MORE POWER, 1907 01:11:19,001 --> 01:11:21,000 MORE MONEY AND A PAT ON THE BACK 1908 01:11:21,001 --> 01:11:22,000 WITH THE HOPE THAT THEY WILL DO 1909 01:11:22,001 --> 01:11:24,000 A BETTER JOB NEXT TIME. 1910 01:11:24,001 --> 01:11:26,000 THIS IS NOT REAL REFORM, MADAM PRESIDENT. 1911 01:11:26,001 --> 01:11:28,000 THAT IS JUST MORE OF THE SAME. 1912 01:11:28,001 --> 01:11:30,000 WE HAD AN OPPORTUNITY TO LEAD 1913 01:11:30,001 --> 01:11:32,000 THE WORLD BY CREATING A MODERN, 1914 01:11:32,001 --> 01:11:33,000 EFFICIENT AND COMPETITIVE 1915 01:11:33,001 --> 01:11:35,000 REGULATORY STRUCTURE THAT WILL 1916 01:11:35,001 --> 01:11:36,000 SERVE OUR ECONOMY FOR YEARS TO 1917 01:11:36,001 --> 01:11:39,000 COME. 1918 01:11:39,001 --> 01:11:41,000 INSTEAD, I BELIEVE WE SQUANDERED 1919 01:11:41,001 --> 01:11:43,000 THAT OPPORTUNITY BY BARELY 1920 01:11:43,001 --> 01:11:44,000 EXPANDING AN OBSOLETE, 1921 01:11:44,001 --> 01:11:47,000 INEFFICIENT AND UNCOMPETITIVE SYSTEM. 1922 01:11:47,001 --> 01:11:49,000 TO MAKE IT EVEN WORSE, THEY HAVE 1923 01:11:49,001 --> 01:11:52,000 ADDED TO THE BUREAUCRATIC MORASS 1924 01:11:52,001 --> 01:11:54,000 SEVERAL MORE UNRESTRAINED AND 1925 01:11:54,001 --> 01:11:57,000 UNACCOUNTABLE AGENCIES. 1926 01:11:57,001 --> 01:11:59,000 IT BECAME APPARENT EARLY ON TO 1927 01:11:59,001 --> 01:12:00,000 ME THAT THE ADMINISTRATION, THE 1928 01:12:00,001 --> 01:12:01,000 DEMOCRAT MAJORITY ARE NOT REALLY 1929 01:12:01,001 --> 01:12:03,000 INTERESTED IN REGULATORY REFORM. 1930 01:12:03,001 --> 01:12:04,000 ALL THEY WERE REALLY TRYING TO 1931 01:12:04,001 --> 01:12:06,000 DO IS EXPLOIT THE CRISIS IN 1932 01:12:06,001 --> 01:12:07,000 ORDER TO EXPAND GOVERNMENT 1933 01:12:07,001 --> 01:12:08,000 FURTHER AND AWARD SPECIAL 1934 01:12:08,001 --> 01:12:11,000 INTERESTS. 1935 01:12:11,001 --> 01:12:12,000 THE DODD-FRANK BILL WILL NOT 1936 01:12:12,001 --> 01:12:14,000 ENHANCE SYSTEMIC STABILITY. 1937 01:12:14,001 --> 01:12:16,000 IT WILL NOT PREVENT FUTURE 1938 01:12:16,001 --> 01:12:18,000 BAILOUTS OF POLITICALLY FAVORED 1939 01:12:18,001 --> 01:12:22,000 INSTITUTIONS AND GROUPS BY THE GOVERNMENT. 1940 01:12:22,001 --> 01:12:24,000 THE BILL SERVES TO EXPAND THE 1941 01:12:24,001 --> 01:12:26,000 BERYL BUREAUCRACY AND 1942 01:12:26,001 --> 01:12:27,000 GOVERNMENT-CONTROLLED PRIVATE 1943 01:12:27,001 --> 01:12:29,000 SECTOR. 1944 01:12:29,001 --> 01:12:32,000 IT WILL IMPOSE LARGE 1945 01:12:32,001 --> 01:12:35,000 THE TAXPAYERS AND BUSINESSES. 1946 01:12:35,001 --> 01:12:37,000 COLLEAGUES TO REJECT THIS BILL. 1947 01:12:37,001 --> 01:12:38,000 I NOTE THE ABSENCE OF A QUORUM. 1948 01:12:38,001 --> 01:12:40,000 THE 1949 01:12:40,001 --> 01:12:41,000 WILL CALL THE ROLL. 1950 01:12:41,001 --> 01:12:43,000 MR. DODD: MADAM PRESIDENT? THE PRESIDING OFFICER: THE 1951 01:12:43,001 --> 01:12:45,000 SENATOR FROM CON 1952 01:12:45,001 --> 01:12:49,000 MR. DODD: WELL, MADAM PRESIDENT, 1953 01:12:49,001 --> 01:12:51,000 LET ME THANK MY COLLEAGUE FROM ALABAMA ONCE AGAIN. 1954 01:12:51,001 --> 01:12:52,000 I SAY THIS WITH RESPECT, BUT I 1955 01:12:52,001 --> 01:12:54,000 ALMOST FEEL LIKE I'M LISTENING 1956 01:12:54,001 --> 01:12:56,000 TO THE SAME SPEECH I HEARD BACK 1957 01:12:56,001 --> 01:12:58,000 IN NOVEMBER WN I OFFERED THE 1958 01:12:58,001 --> 01:13:00,000 ORIGINAL PROPOSAL OF THIS BILL. I'M WONDERING WHETHER OR NOT WE 1959 01:13:00,001 --> 01:13:02,000 HAVE BEEN IN THE SAME CHAMBER, 1960 01:13:02,001 --> 01:13:05,000 IN THE SAME CITY OVER THE LAST 1961 01:13:05,001 --> 01:13:10,000 SEVERAL YEARS. 1962 01:13:10,001 --> 01:13:12,000 I'M NOT 1963 01:13:12,001 --> 01:13:13,000 BETWEEN NOW AND 11:00 A.M. WHEN 1964 01:13:13,001 --> 01:13:15,000 WE'LL VOTE ON THE CLOTURE MOTION. 1965 01:13:15,001 --> 01:13:16,000 I WON'T GO THROUGH THE LONG LIST 1966 01:13:16,001 --> 01:13:17,000 HERE, PAGE AFTER PAGE AFTER PAGE 1967 01:13:17,001 --> 01:13:18,000 OF AMENDMENTS THAT WERE ADOPTED 1968 01:13:18,001 --> 01:13:20,000 AS PART OF THIS BILL OFFERED BY 1969 01:13:20,001 --> 01:13:23,000 MY GOOD FRIENDS ON THE MINORITY SIDE. 1970 01:13:23,001 --> 01:13:24,000 80 HEARINGS HELD OVER TWO YEARS. 1971 01:13:24,001 --> 01:13:27,000 COUNTLESS EFFORTS TO REACH OUT 1972 01:13:27,001 --> 01:13:28,000 AND BRING PEOPLE IN. 1973 01:13:28,001 --> 01:13:30,000 YOU CAN MAKE A LOT OF 1974 01:13:30,001 --> 01:13:32,000 ACCUSATIONS I SUPPOSE ABOUT THE 1975 01:13:32,001 --> 01:13:33,000 BILL, BUT THIS WAS A VERY INCLUSIVE PROCESS. 1976 01:13:33,001 --> 01:13:35,000 HALF THE AMENDMENTS THAT WERE 1977 01:13:35,001 --> 01:13:36,000 ADOPTED ON THE FLOOR OF THIS CHAMBER DURING THE CONSIDERATION 1978 01:13:36,001 --> 01:13:38,000 OF THE FOUR WEEKS WERE ONES 1979 01:13:38,001 --> 01:13:39,000 OFFERED BY THE MINORITY WERE 1980 01:13:39,001 --> 01:13:40,000 ACCEPTED AND BIPARTISAN 1981 01:13:40,001 --> 01:13:41,000 AMENDMENTS. 1982 01:13:41,001 --> 01:13:42,000 THERE WAS NEVER AN ALTERNATIVE OFFERED. 1983 01:13:42,001 --> 01:13:43,000 THERE WAS NEVER A SUBSTITUTE 1984 01:13:43,001 --> 01:13:44,000 OFFERED. 1985 01:13:44,001 --> 01:13:45,000 IT WAS REALLY A QUESTION OF 1986 01:13:45,001 --> 01:13:47,000 WHETHER PEOPLE WANTED TO AMEND 1987 01:13:47,001 --> 01:13:48,000 THIS LEGISLATION WE HAD BEFORE 1988 01:13:48,001 --> 01:13:49,000 US. 1989 01:13:49,001 --> 01:13:51,000 IT IS NOT A PERFECT BILL. 1990 01:13:51,001 --> 01:13:53,000 I WILL BE THE FIRST TO ADMIT THAT. 1991 01:13:53,001 --> 01:13:54,000 WE DON'T KNOW ULTIMATELY HOW 1992 01:13:54,001 --> 01:13:55,000 WELL THE IDEAS WE HAVE 1993 01:13:55,001 --> 01:13:57,000 INCORPORATED HERE WILL ACHIEVE 1994 01:13:57,001 --> 01:13:59,000 THE RESULTS WE ALL DESIRE. 1995 01:13:59,001 --> 01:14:00,000 IT WILL TAKE THE NEXT ECONOMIC 1996 01:14:00,001 --> 01:14:01,000 CRIS, AS CERTAINLY IT WILL 1997 01:14:01,001 --> 01:14:03,000 COME, TO DETERMINE WHETHER OR 1998 01:14:03,001 --> 01:14:04,000 NOT THE PROVISIONS 1999 01:14:04,001 --> 01:14:06,000 WILL ACTUALLY PROVIDE THIS 2000 01:14:06,001 --> 01:14:08,000 GENERATION OR THE NEXT 2001 01:14:08,001 --> 01:14:09,000 GENERATION OF REGULATORS WITH 2002 01:14:09,001 --> 01:14:11,000 THE TOOLS NECESSARY TO MINIMIZE 2003 01:14:11,001 --> 01:14:12,000 THE EFFECTS OF THAT CRISIS WHEN 2004 01:14:12,001 --> 01:14:14,000 IT HAPPENS, BUT WE BELIEVE WE 2005 01:14:14,001 --> 01:14:15,000 HAVE DONE THE BEST WE COULD 2006 01:14:15,001 --> 01:14:17,000 UNDER THE CIRCUMSTANCES TO SEE 2007 01:14:17,001 --> 01:14:18,000 TO IT WE NEVER HAVE ANOTHER 2008 01:14:18,001 --> 01:14:20,000 BAILOUT OF A MAJOR FINANCIAL 2009 01:14:20,001 --> 01:14:22,000 INSTITUTION AT TAXPAYER EXPENSE. 2010 01:14:22,001 --> 01:14:23,000 IN FACT, IT WAS THE SHELBY-DODD 2011 01:14:23,001 --> 01:14:25,000 AMENDMENT ADOPTED IN THIS 2012 01:14:25,001 --> 01:14:27,000 CHAMBER AS THE SECOND AMENDMENT 2013 01:14:27,001 --> 01:14:28,000 TO BE CONSIDERED THAT ACTUALLY 2014 01:14:28,001 --> 01:14:31,000 COMPLETED THE PROCESS OF SEEING 2015 01:14:31,001 --> 01:14:32,000 TO IT THAT THERE WOULD BE EITHER 2016 01:14:32,001 --> 01:14:33,000 BANKRUPTCY OR RESOLUTION OF 2017 01:14:33,001 --> 01:14:34,000 FINANCIAL INSTITUTIONS THAT GOT 2018 01:14:34,001 --> 01:14:36,000 THEMSELVES INTO SO MUCH TROUBLE 2019 01:14:36,001 --> 01:14:37,000 THEY PUT THE ENTIRE 2020 01:14:37,001 --> 01:14:38,000 RISK. 2021 01:14:38,001 --> 01:14:40,000 WE HAVE SET UP A 2022 01:14:40,001 --> 01:14:41,000 COUNCIL TO MAKE SURE WE COULD 2023 01:14:41,001 --> 01:14:43,000 OBSERVE WHAT WAS OCCURRING, NOT 2024 01:14:43,001 --> 01:14:45,000 ONLY HERE AT HOME BUT AROUND THE 2025 01:14:45,001 --> 01:14:46,000 GLOBE, MATTERS SUCH AS GREECE OR 2026 01:14:46,001 --> 01:14:48,000 SPAIN THAT COULD PUT OUR ECONOMY 2027 01:14:48,001 --> 01:14:50,000 AT RISK. 2028 01:14:50,001 --> 01:14:51,000 SO IT ISN'T JUST ONE SET OF 2029 01:14:51,001 --> 01:14:52,000 EYES, BUT HAVING THOSE 2030 01:14:52,001 --> 01:14:54,000 RESPONSIBLE FOR SEEING TO IT 2031 01:14:54,001 --> 01:14:55,000 THAT OUR ECONOMY REMAINS SAFE 2032 01:14:55,001 --> 01:14:57,000 AND SOUND, HAVE THE OPPORTUNITY 2033 01:14:57,001 --> 01:15:01,000 TO PROVIDE THE EARLY WARNING 2034 01:15:01,001 --> 01:15:03,000 YOU DIDN'T NEED A COMMISSION TO 2035 01:15:03,001 --> 01:15:04,000 FIND OUT WHAT WAS GOING ON. 2036 01:15:04,001 --> 01:15:05,000 YOU HAD MORTGAGES THAT WERE 2037 01:15:05,001 --> 01:15:07,000 BEING SOLD IN THIS COUNTRY TO 2038 01:15:07,001 --> 01:15:09,000 PEOPLE THAT COULDN'T AFFORD 2039 01:15:09,001 --> 01:15:11,000 THEM, MARKETING IN A WAY THAT 2040 01:15:11,001 --> 01:15:12,000 WOULD GUARANTEE FAILURE, 2041 01:15:12,001 --> 01:15:13,000 SECURITIZING THEM S YOU COULD 2042 01:15:13,001 --> 01:15:14,000 BE PAID 2043 01:15:14,001 --> 01:15:16,000 IN A SENSE. 2044 01:15:16,001 --> 01:15:18,000 I DON'T NEED TO 2045 01:15:18,001 --> 01:15:19,000 HAVE HOURS OF HEARINGS TO FIND 2046 01:15:19,001 --> 01:15:20,000 OUT WHAT WAS THE CAUSE OF IT. 2047 01:15:20,001 --> 01:15:22,000 IT'S HOW TO PUT A SYSTEM IN 2048 01:15:22,001 --> 01:15:24,000 PLACE TO MINIMIZE THE KIND OF 2049 01:15:24,001 --> 01:15:25,000 FUTURE RISKS OUR NATION WOULD 2050 01:15:25,001 --> 01:15:26,000 FACE T. WASN'T JUST TO DEAL WITH 2051 01:15:26,001 --> 01:15:28,000 THOSE WHO CREATED THE PROBLEM 2052 01:15:28,001 --> 01:15:29,000 BUT RATHER TO LOOK AHEAD, NOT IN 2053 01:15:29,001 --> 01:15:31,000 A PUNITIVE WAY BUT TO TRY AND 2054 01:15:31,001 --> 01:15:33,000 SET UP AN ARCHITECTURE AND 2055 01:15:33,001 --> 01:15:34,000 STRUCTURE THAT WOULD ALLOW TO US 2056 01:15:34,001 --> 01:15:36,000 GET TO THAT POINT WHERE WE COULD 2057 01:15:36,001 --> 01:15:37,000 BE CONFIDENT THAT WE WERE 2058 01:15:37,001 --> 01:15:38,000 ADDRESSING THESE ISSUES. 2059 01:15:38,001 --> 01:15:40,000 THIRDLY, OF COURSE, WE TRIED TO 2060 01:15:40,001 --> 01:15:42,000 DEAL WITH THE EXOTIC INSTRUMENTS 2061 01:15:42,001 --> 01:15:43,000 THAT HAD CAUSED SO MUCH OF 2062 01:15:43,001 --> 01:15:45,000 DIFFICULTY. 2063 01:15:45,001 --> 01:15:47,000 THE DERIVATIVES MARKET WAS A 2064 01:15:47,001 --> 01:15:48,000 $90 BILLION MARKET AND IT 2065 01:15:48,001 --> 01:15:51,000 MUSHROOMED IN LESS THAN A DECADE 2066 01:15:51,001 --> 01:15:53,000 TO $600 TRILLION, PUTTING OUR 2067 01:15:53,001 --> 01:15:54,000 NATION 2068 01:15:54,001 --> 01:15:56,000 OF TRANSPARENCY AND 2069 01:15:56,001 --> 01:16:00,000 ACCOUNTABILITY TO DETERMINE WHAT 2070 01:16:00,001 --> 01:16:02,000 WAS OCCURRING IN THOSE 2071 01:16:02,001 --> 01:16:04,000 WE CONSIDERED IT A 2072 01:16:04,001 --> 01:16:05,000 THAT WE MIGHT WANT TO HAVE 2073 01:16:05,001 --> 01:16:07,000 TRANSPARENCY AND ACCOUNTABILITY 2074 01:16:07,001 --> 01:16:08,000 I 2075 01:16:08,001 --> 01:16:09,000 CONSIDERING WHAT OUR COUNTRY HAS BEEN THROUGH. 2076 01:16:09,001 --> 01:16:10,000 AND ALSO WE PROVIDED A CONSUMER 2077 01:16:10,001 --> 01:16:12,000 PROTECTION BUREAU. 2078 01:16:12,001 --> 01:16:13,000 WHAT A RADICAL 2079 01:16:13,001 --> 01:16:15,000 IDEA THAT PEOPLE WHO -- 2080 01:16:15,001 --> 01:16:17,000 WHAT A 2081 01:16:17,001 --> 01:16:18,000 THE IDEA THAT PEOPLE WHO BUY 2082 01:16:18,001 --> 01:16:20,000 MORTGAGES, HAVE A STUDENT LOAN, 2083 01:16:20,001 --> 01:16:24,000 A CREDIT CARD, A CAR LOAN, THEY 2084 01:16:24,001 --> 01:16:25,000 MIGHT HAVE SOME 2085 01:16:25,001 --> 01:16:27,000 CITY THATATCHES OUT FOR THEM, 2086 01:16:27,001 --> 01:16:32,000 FOR THEIR JOBS, THEIR HOMES, 2087 01:16:32,001 --> 01:16:33,000 THEIR RETIREMENT ACCOUNTS LOST. 2088 01:16:33,001 --> 01:16:35,000 AND SO WHILE THIS BUREAU IS IN 2089 01:16:35,001 --> 01:16:39,000 PLACE IN THIS BILL, THE IDEA WAS 2090 01:16:39,001 --> 01:16:40,000 AT LEAST TO SEE TO IT THAT 2091 01:16:40,001 --> 01:16:41,000 PEOPLE WHEN THEY HAVE THE 2092 01:16:41,001 --> 01:16:42,000 PROBLEMS TY'VE BEEN THROUGH OR 2093 01:16:42,001 --> 01:16:46,000 ARE GOING THROUGH, SOMEONE IS 2094 01:16:46,001 --> 01:16:48,000 WATCHING OUT FOR 2095 01:16:48,001 --> 01:16:49,000 WE HAVE A CONSUMER PRODUCT 2096 01:16:49,001 --> 01:16:50,000 SAFE COMMISSION, WHEN YOU BUY 2097 01:16:50,001 --> 01:16:52,000 A FAULTY PRODUCT, WHAT HAPPENS 2098 01:16:52,001 --> 01:16:55,000 WHEN SOMEONE ABUSES OR TAKES 2099 01:16:55,001 --> 01:16:56,000 ADVANTAGE, AS HAPPENED SO MANY 2100 01:16:56,001 --> 01:16:57,000 CASES IN FINANCIAL AREAS THAT 2101 01:16:57,001 --> 01:16:59,000 PEOPLE HAVE A CHANCE TO HAVE A 2102 01:16:59,001 --> 01:17:01,000 REDRESS OF THEIR GRIEVANCE OR TO 2103 01:17:01,001 --> 01:17:02,000 AT LEAST IN THE OUTSET HAVE AN 2104 01:17:02,001 --> 01:17:04,000 OPPORTUNITY TO ADDRESS THAT 2105 01:17:04,001 --> 01:17:11,000 BEFORE IT BECOMES A BROADER 2106 01:17:11,001 --> 01:17:12,000 PROBLEM. 2107 01:17:12,001 --> 01:17:13,000 MR. PRESIDENT, AGAIN, WVE 2108 01:17:13,001 --> 01:17:14,000 DEBATED THIS -- 2109 01:17:14,001 --> 01:17:16,000 MADAM PRESIDENT, AGAIN, WE'VE 2110 01:17:16,001 --> 01:17:17,000 DEBATED THIS AND WE SPENT FOUR 2111 01:17:17,001 --> 01:17:18,000 WEEKS ON THE FLOOR OF THIS 2112 01:17:18,001 --> 01:17:19,000 CHAMBER. 2113 01:17:19,001 --> 01:17:20,000 AMENDMENTS WERE OFFERED. 2114 01:17:20,001 --> 01:17:21,000 NER ONCE -- I GET ON ONE 2115 01:17:21,001 --> 01:17:22,000 OCCASION DID WE HAVE A SUPER 2116 01:17:22,001 --> 01:17:23,000 MAJORITY VOTE. 2117 01:17:23,001 --> 01:17:24,000 THERE WAS ONLY ONE TABLING 2118 01:17:24,001 --> 01:17:25,000 MOTION THAT I KNOW OF. 2119 01:17:25,001 --> 01:17:27,000 I DID EVERYTHING I COULD TO MAKE 2120 01:17:27,001 --> 01:17:28,000 IT AS 2121 01:17:28,001 --> 01:17:32,000 POSSIBLE. 2122 01:17:32,001 --> 01:17:33,000 AND THE FACT THAT I 2123 01:17:33,001 --> 01:17:35,000 PEOPLE DON'T LIKE THE BILL. 2124 01:17:35,001 --> 01:17:37,000 IT S 2125 01:17:37,001 --> 01:17:38,000 AGAIN IT'S BECOME SORT OF A 2126 01:17:38,001 --> 01:17:39,000 MINDLESS PARTISAN ARGUMENT 2127 01:17:39,001 --> 01:17:40,000 RATHER THAN TALKING ABOUT WHAT 2128 01:17:40,001 --> 01:17:42,000 WE NEED TO BE DOING. 2129 01:17:42,001 --> 01:17:43,000 THIS IS NOT THE END OF ALL OF 2130 01:17:43,001 --> 01:17:46,000 IT, OBVIOUSLY. 2131 01:17:46,001 --> 01:17:48,000 OVERSIGHT WILL BE REQUIRED, 2132 01:17:48,001 --> 01:17:50,000 CONSULTATION IN THE COMING WEEKS 2133 01:17:50,001 --> 01:17:52,000 AND MONTHS AND Y THIS WORK WELL. 2134 01:17:52,001 --> 01:17:58,000 BUT, MADAM PRESIDENT, I CAN'T 2135 01:17:58,001 --> 01:17:59,000 IMAGINE ANOTHER PROCESS THAT HAS 2136 01:17:59,001 --> 01:18:01,000 BEEN AS INCLUSIVE. 2137 01:18:01,001 --> 01:18:02,000 MY COLLEAGUES WILL RECALL GOING 2138 01:18:02,001 --> 01:18:04,000 ON TEN MONTHS, ALMOST A YEAR AGO 2139 01:18:04,001 --> 01:18:05,000 THAT I INVITED BOTH DEMOCRATS 2140 01:18:05,001 --> 01:18:06,000 AND REPUBLICANS ON THE BANKING 2141 01:18:06,001 --> 01:18:09,000 COMMITTEE TO ASSUME 2142 01:18:09,001 --> 01:18:11,000 RE 2143 01:18:11,001 --> 01:18:15,000 SECTIONS OF THIS BILL WHICH THEY 2144 01:18:15,001 --> 01:18:16,000 DID DO, BY THE WAY, AND MADE A 2145 01:18:16,001 --> 01:18:18,000 SIGNIFICANT CONTRIBUTION TO THE PRODUCT. 2146 01:18:18,001 --> 01:18:19,000 AND SO WHILE I EXPECT THOSE WHO 2147 01:18:19,001 --> 01:18:20,000 WANT TO VOTE AGAINST THE BILL, 2148 01:18:20,001 --> 01:18:22,000 THAT'S THEIR RIGHT TO DO SO. 2149 01:18:22,001 --> 01:18:24,000 FIND SOME ARGUMENTS BASED ON THE 2150 01:18:24,001 --> 01:18:25,000 MERITS RATHER THAN 2151 01:18:25,001 --> 01:18:26,000 WHETHER OR NOT THIS WAS A 2152 01:18:26,001 --> 01:18:30,000 PROCESS THAT WAS INCLUSIVE OR 2153 01:18:30,001 --> 01:18:31,000 ALLOWED PEOPLE THE OPPORTUNITY 2154 01:18:31,001 --> 01:18:32,000 TO BE HEARD. 2155 01:18:32,001 --> 01:18:33,000 NOW, AGAIN, WE HAVE THE RIGHT TO BE HEARD. 2156 01:18:33,001 --> 01:18:34,000 YOU DON'T HAVE A RIGHT TO 2157 01:18:34,001 --> 01:18:36,000 NECESSARILY HAVE YOUR IDEAS 2158 01:18:36,001 --> 01:18:39,000 BECOME THE LAW OF THE LAND. 2159 01:18:39,001 --> 01:18:41,000 THAT'S WHAT A BODY LIKE THIS IS FOR. 2160 01:18:41,001 --> 01:18:43,000 AND SO THIS IS A MAJOR 2161 01:18:43,001 --> 01:18:44,000 UNDERTAKING, ONE THAT IS 2162 01:18:44,001 --> 01:18:46,000 HISTORIC IN ITS PROPORTIONS, 2163 01:18:46,001 --> 01:18:47,000 THAT IS AN ATTEMPT TO SET IN 2164 01:18:47,001 --> 01:18:48,000 PLACE THE STRUCTURE THAT WOULD 2165 01:18:48,001 --> 01:18:51,000 ALLOW US TO MINIMIZE THE 2166 01:18:51,001 --> 01:18:54,000 PROBLEMS IN THE FUTURE. 2167 01:18:54,001 --> 01:18:55,000 I CAN'T 2168 01:18:55,001 --> 01:18:58,000 CAN'T LEGISLATE WISDOM. 2169 01:18:58,001 --> 01:18:59,000 I CAN'T LEGISLATE PASSION OR 2170 01:18:59,001 --> 01:19:00,000 COMPETENCY. 2171 01:19:00,001 --> 01:19:02,000 WHAT WE CAN DO IS CREATE THE 2172 01:19:02,001 --> 01:19:04,000 TOOLS AND THE ARCHITECTURE THAT 2173 01:19:04,001 --> 01:19:05,000 ALLOW GOOD PEOPLE TO DO 2174 01:19:05,001 --> 01:19:08,000 JOB ON BEHALF OF THE AMERICAN 2175 01:19:08,001 --> 01:19:10,000 PUBLIC. 2176 01:19:10,001 --> 01:19:11,000 AND THEATSD WHAT A BILL LIKE 2177 01:19:11,001 --> 01:19:12,000 THIS -- 2178 01:19:12,001 --> 01:19:13,000 AND THAT'S WHAT A BILL LIKE THIS 2179 01:19:13,001 --> 01:19:15,000 IS DESIGNED TO DO. 2180 01:19:15,001 --> 01:19:18,000 I REGRET I CANNOT GIVE YOU YOUR 2181 01:19:18,001 --> 01:19:19,000 JOB BACK, PUT RETIREMENT MOMENTS 2182 01:19:19,001 --> 01:19:21,000 BACK IN YOUR ACCOUNT. 2183 01:19:21,001 --> 01:19:23,000 WHAT I CAN DO IS SEE TO IT THAT 2184 01:19:23,001 --> 01:19:24,000 WE NEVER, EVER THROUGH WHAT THIS NATION HAS 2185 01:19:24,001 --> 01:19:25,000 BEEN THROUGH. 2186 01:19:25,001 --> 01:19:27,000 AND THAT'S WHAT THIS EFFORT HAS 2187 01:19:27,001 --> 01:19:30,000 BEEN ABOUT OVER THE LAST 2188 01:19:30,001 --> 01:19:32,000 YEARS, TO TRY AND CREATE THAT 2189 01:19:32,001 --> 01:19:34,000 STRUCTURE, THAT ARCHITECTURE 2190 01:19:34,001 --> 01:19:37,000 IT WILL BE INCUMBENT NOW ON THE 2191 01:19:37,001 --> 01:19:38,000 THAT FOLLOW TO NOMINATE GOOD 2192 01:19:38,001 --> 01:19:40,000 PEOPLE TO HEAD UP 2193 01:19:40,001 --> 01:19:42,000 OPERATIONS, TO ATTRACT GOOD 2194 01:19:42,001 --> 01:19:43,000 PUBLIC SERVANTS WHO WILL FILL 2195 01:19:43,001 --> 01:19:45,000 THE JOBS IN THESE VARIOUS 2196 01:19:45,001 --> 01:19:48,000 REGULATORY BODIES TO SEE TO IT 2197 01:19:48,001 --> 01:19:49,000 THAT THEY DO THE JOB WE ALL WANT 2198 01:19:49,001 --> 01:19:50,000 THEM TO DO. 2199 01:19:50,001 --> 01:19:51,000 AGAIN, I CAN'T LEGISLATE THAT. 2200 01:19:51,001 --> 01:19:52,000 I CAN MERELY CREATE THE 2201 01:19:52,001 --> 01:19:55,000 OPPORTUNITY FOR THAT KIND OF 2202 01:19:55,001 --> 01:19:56,000 PROTECTION TO OCCUR, TO 2203 01:19:56,001 --> 01:19:59,000 MODERNIZE OUR FINANCIAL SYSTEM, 2204 01:19:59,001 --> 01:20:01,000 TO LEAD THE WORLD, IF WE CAN, IN 2205 01:20:01,001 --> 01:20:02,000 HARMONIZING R 2206 01:20:02,001 --> 01:20:04,000 HAVE THE KIND OF SOVEREIGN 2207 01:20:04,001 --> 01:20:06,000 SHOPPING THAT HAS GONE ON WITH 2208 01:20:06,001 --> 01:20:08,000 REGULATORY BODIES, WHERE MAJOR 2209 01:20:08,001 --> 01:20:09,000 FINANCIAL INSTITUTIONS SHOP 2210 01:20:09,001 --> 01:20:11,000 AROUND THE WORLD AS TO THE 2211 01:20:11,001 --> 01:20:13,000 NATION OF LEAST RESISTANCE OR 2212 01:20:13,001 --> 01:20:14,000 THE REGULATOR OF LEAST 2213 01:20:14,001 --> 01:20:18,000 RESISTANCE TO SEE TO IT WE HAVE 2214 01:20:18,001 --> 01:20:19,000 TH UNANIMITY AND AT LEAST THE 2215 01:20:19,001 --> 01:20:20,000 HARMONIZATION OF RULES THAT WILL 2216 01:20:20,001 --> 01:20:23,000 ALLOW US TO HAVE A MORE ORDERLY 2217 01:20:23,001 --> 01:20:25,000 SYSTEM IN OUR GLOBE, BECAUSE AS 2218 01:20:25,001 --> 01:20:26,000 WE'VE ALL PAINFULLY LEARNED, 2219 01:20:26,001 --> 01:20:28,000 MATTERS THAT CAN OCCUR THOUSANDS 2220 01:20:28,001 --> 01:20:29,000 OF MILES AWAY CAN AFFECT THE 2221 01:20:29,001 --> 01:20:31,000 ECONOMY IN OUR OWN COUNTRY. 2222 01:20:31,001 --> 01:20:33,000 SO FOR ALL OF THOSE REASONS, 2223 01:20:33,001 --> 01:20:34,000 MADAM PRESIDENT, I THANK MY COLLEAGUES FOR THEIR EFFORTS 2224 01:20:34,001 --> 01:20:36,000 OVER THE LAST TWO YEARS. 2225 01:20:36,001 --> 01:20:37,000 I THANK THE LEADERSHIP FOR 2226 01:20:37,001 --> 01:20:40,000 PROVIDING THE OPPORTUNITY 2227 01:20:40,001 --> 01:20:42,000 TIME FOR TO US DO THIS IN THIS CHAMBER. 2228 01:20:42,001 --> 01:20:43,000 I THANK MY COLLEAGUE IN THE 2229 01:20:43,001 --> 01:20:44,000 HOUSE, BARNEY FRANK, AND HIS 2230 01:20:44,001 --> 01:20:46,000 COLLEAGUES FOR THE WORK THEY 2231 01:20:46,001 --> 01:20:47,000 ENGAGED IN IN ORDER TO PRODUCE A 2232 01:20:47,001 --> 01:20:50,000 BILL THERE. 2233 01:20:50,001 --> 01:20:51,000 THE TWO WEEKS WE SPENT, SOME 70 2234 01:20:51,001 --> 01:20:53,000 HOURS OF DEBATING THE CONFERENCE 2235 01:20:53,001 --> 01:20:55,000 REPORT, AGAIN, WHERE MORE 2236 01:20:55,001 --> 01:20:56,000 AMENDMENTS WERE ADOPTED, AGAIN, 2237 01:20:56,001 --> 01:20:58,000 OFFERED BY MY COLLEAGUES, 2238 01:20:58,001 --> 01:21:00,000 REPUBLICANS AND DEMOCRATS, TO 2239 01:21:00,001 --> 01:21:01,000 MAKE THIS AS GOOD A BILL AS WE 2240 01:21:01,001 --> 01:21:03,000 COULD IN ALL OF THIS. 2241 01:21:03,001 --> 01:21:04,000 SO WITH THAT, MADAM PRESIDENT, 2242 01:21:04,001 --> 01:21:06,000 AGAIN, I'LL RESERVE SOME 2243 01:21:06,001 --> 01:21:07,000 COMMENTS FOR LATER BUT AS WE 2244 01:21:07,001 --> 01:21:09,000 APPROACH THIS VOTE IN THE NEXT 2245 01:21:09,001 --> 01:21:12,000 FEW MINUTES, I URGE MY 2246 01:21:12,001 --> 01:21:14,000 COLLEAGUES TO INVOKE CLOTURE, TO 2247 01:21:14,001 --> 01:21:15,000 ALLOW US TO THEN HAVE AN 2248 01:21:15,001 --> 01:21:16,000 UP-OR-DOWN VOTE ON THIS BILL, TO 2249 01:21:16,001 --> 01:21:18,000 DO WHAT WE CAN TO RESTORE SOME 2250 01:21:18,001 --> 01:21:19,000 TRUST AND CONFIDENCE AND 2251 01:21:19,001 --> 01:21:22,000 OPTIMISM IN THE AMERICAN PEOPLE 2252 01:21:22,001 --> 01:21:23,000 THAT IN THE MIDST OF THE WORST 2253 01:21:23,001 --> 01:21:24,000 ECONOMIC CRISIS OF THE LIFETIME 2254 01:21:24,001 --> 01:21:29,000 OF MOST AMERICANS, THIS 2255 01:21:29,001 --> 01:21:30,000 INSTITUTION, THE UNITED STATES UNITED STATES 2256 01:21:30,001 --> 01:21:31,000 SENATE, ROSE TO THE OCCASION AND 2257 01:21:31,001 --> 01:21:32,000 CRAFTED A BILL AND A PROPOSAL TO 2258 01:21:32,001 --> 01:21:33,000 ADDRESS THE FINANCIAL SERVICE 2259 01:21:33,001 --> 01:21:35,000 STRUCTUROF OUR NATION TO GIVE 2260 01:21:35,001 --> 01:21:37,000 US ONCE AGAIN THAT HOPE THAT WE 2261 01:21:37,001 --> 01:21:39,000 CAN SEE WEALTH CREATED, JOBS 2262 01:21:39,001 --> 01:21:40,000 PRODUCED AND AN ECONOMY THAT 2263 01:21:40,001 --> 01:21:42,000 WILL OFFER OPPORTUNITIES FOR THE 2264 01:21:42,001 --> 01:21:43,000 NEXT GENERATION OF AMERICANS. 2265 01:21:43,001 --> 01:21:45,000 I URGE MY COLLEAGUES TO SUPPORT 2266 01:21:45,001 --> 01:21:46,000 THAT 2267 01:21:46,001 --> 01:21:48,000 THEM TO SUPPORT THE BILL WHEN 2268 01:21:48,001 --> 01:22:09,000 THE VOTE OCCURS LATER TODAY. 2269 01:22:09,001 --> 01:22:11,000 AND I YIELD THE FLOOR. 2270 01:22:11,001 --> 01:22:12,000 MADAM PRESIDENT? 2271 01:22:12,001 --> 01:22:15,000 THE PRESIDING OFFICER: THE 2272 01:22:15,001 --> 01:22:16,000 REPUBLICAN LEADER. 2273 01:22:16,001 --> 01:22:17,000 MR. McCONNELL: LATER TODAY 2274 01:22:17,001 --> 01:22:20,000 WE'LL HAVE A DECISIVE VOTE ON 2275 01:22:20,001 --> 01:22:22,000 THE FINANCIAL REGULATORY BILL 2276 01:22:22,001 --> 01:22:23,000 THAT DOES NOTHING TO REFORM THE 2277 01:22:23,001 --> 01:22:24,000 GOVERNMENT-SPONSORED ENTERPRISES 2278 01:22:24,001 --> 01:22:25,000 THAT MANY PEOPLE BELIEVE TO HAVE 2279 01:22:25,001 --> 01:22:28,000 BEEN AT THE ROOT OF THE 2280 01:22:28,001 --> 01:22:29,000 FINANCIAL CRISIS THIS BILL GREW 2281 01:22:29,001 --> 01:22:30,000 OUT OF. 2282 01:22:30,001 --> 01:22:32,000 A BILL THAT WAS MEANT TO REIN IN 2283 01:22:32,001 --> 01:22:34,000 WALL STREET BUT WHICH IS NOW 2284 01:22:34,001 --> 01:22:36,000 SUPPORTED BY SOME OF WALL 2285 01:22:36,001 --> 01:22:37,000 STREET'S BIGGEST BANKS AND 2286 01:22:37,001 --> 01:22:39,000 OPPOSED BY SMALL COMMUNITY BANKS IN MY STATE. 2287 01:22:39,001 --> 01:22:40,000 A BILL THAT'S MEANT TO HELP THE 2288 01:22:40,001 --> 01:22:43,000 ECONOMY BUT WHICH I WIDELY 2289 01:22:43,001 --> 01:22:44,000 EXPECTED TO STIFLE GROWTH AND 2290 01:22:44,001 --> 01:22:45,000 KILL MORE JOBS IN THE MIDDLE OF 2291 01:22:45,001 --> 01:22:47,000 A DEEP RECESSION. 2292 01:22:47,001 --> 01:22:48,000 AND A BILL THAT, ACCORDING TO 2293 01:22:48,001 --> 01:22:49,000 THE PAPERS, A VAST MAJORITY OF 2294 01:22:49,001 --> 01:22:51,000 AMERICANS SIMPLY DON'T THINK 2295 01:22:51,001 --> 01:22:53,000 WILL WORK. 2296 01:22:53,001 --> 01:22:55,000 AS IT TURNS OUT, THE AMERICAN 2297 01:22:55,001 --> 01:22:56,000 PEOPLE DON'T SEEM TO LIKE THIS 2298 01:22:56,001 --> 01:22:59,000 GOVERNMENT-DRIVEN SOLUTION TO 2299 01:22:59,001 --> 01:23:02,000 THE FINANCIAL CRISIS ANY MORE 2300 01:23:02,001 --> 01:23:03,000 THAN THEY LIKE THE DEMOCRATS' 2301 01:23:03,001 --> 01:23:04,000 GOVERNMENT-DRIVEN SOLUTION TO 2302 01:23:04,001 --> 01:23:05,000 THE NATION'S HEALTH CARE CRISIS. 2303 01:23:05,001 --> 01:23:06,000 THEY DON'T THINK THIS BILL WILL 2304 01:23:06,001 --> 01:23:07,000 SOLVE THE PROBLEMS IN THE 2305 01:23:07,001 --> 01:23:08,000 FINANCIAL SECTOR ANY MORE THAN 2306 01:23:08,001 --> 01:23:10,000 THEY THINK THE HEALTH CARE BILL 2307 01:23:10,001 --> 01:23:12,000 WILL LEAD TO LOWER COSTS OR 2308 01:23:12,001 --> 01:23:14,000 BETTER CARE. 2309 01:23:14,001 --> 01:23:16,000 ONE SURVEY THIS WEEK INDICATES 2310 01:23:16,001 --> 01:23:19,000 THAT 7 IN 10 DEMOCRATS HAVE 2311 01:23:19,001 --> 01:23:21,000 LITTLE CONFIDENCE THE PROPOSALS 2312 01:23:21,001 --> 01:23:23,000 IN THIS BILL WILL AVERT OR 2313 01:23:23,001 --> 01:23:25,000 LESSEN THE IMPACT OF ANOTHER 2314 01:23:25,001 --> 01:23:27,000 FINANCIAL CATASTROPHE, THAT 2315 01:23:27,001 --> 01:23:30,000 NEARLY 70% OF THEM DOUBT IT WILL 2316 01:23:30,001 --> 01:23:32,000 MAKE THEIR SAVINGS MORE SECURE. 2317 01:23:32,001 --> 01:23:33,000 IT'S EASY TO SEE W. 2318 01:23:33,001 --> 01:23:36,000 THE "WL STREET JOURNAL" CALLS 2319 01:23:36,001 --> 01:23:38,000 THIS BILL'S 2,300 PAGES THE 2320 01:23:38,001 --> 01:23:40,000 BIGGEST WAVE OF NEW FEDERAL 2321 01:23:40,001 --> 01:23:41,000 FINANCIAL RULE MAKING IN THREE 2322 01:23:41,001 --> 01:23:42,000 GENERATIONS. 2323 01:23:42,001 --> 01:23:43,000 THE CHAIRMAN OF THE BANKI 2324 01:23:43,001 --> 01:23:44,000 COMMITTEE HAS FAMOUSLY SAID LAST 2325 01:23:44,001 --> 01:23:47,000 MONTH THAT WE WON'T KNOW 2326 01:23:47,001 --> 01:23:48,000 THOUSAND BILL WORKS UNTIL -- HOW 2327 01:23:48,001 --> 01:23:49,000 THIS BILL WORKS UNTIL IT'S IN PLACE. 2328 01:23:49,001 --> 01:23:52,000 BUT HERE ARE SOME INITIAL 2329 01:23:52,001 --> 01:23:54,000 INDICATORS ABOUT ITS SCOPE. 2330 01:23:54,001 --> 01:23:56,000 ACCORDING TO A STUDY BY THE U.S. 2331 01:23:56,001 --> 01:23:57,000 CHAMBER OF COMMERCE ON THE NEW 2332 01:23:57,001 --> 01:24:00,000 BUREAUCRATIC LANDSCAPE UNDER 2333 01:24:00,001 --> 01:24:02,000 THIS BILL, 70 -- 70 -- NEW 2334 01:24:02,001 --> 01:24:05,000 FEDERAL REGULATIONS THROUGH THE 2335 01:24:05,001 --> 01:24:06,000 NEW BUREAU OF CONSUMER FINANCIAL 2336 01:24:06,001 --> 01:24:09,000 PROTECTION. 2337 01:24:09,001 --> 01:24:12,000 54 NEW FEDERAL REGULATORS -- 2338 01:24:12,001 --> 01:24:13,000 REGULATIONS THROUGH THE U.S. 2339 01:24:13,001 --> 01:24:14,000 COMMODITIES FUTURES TRADING 2340 01:24:14,001 --> 01:24:16,000 COMMISSION. 2341 01:24:16,001 --> 01:24:18,000 11 NEW FEDERAL REGULATIONS 2342 01:24:18,001 --> 01:24:20,000 THROUGH THE FEDERAL DEPOSIT 2343 01:24:20,001 --> 01:24:22,000 INSURANCE CORPORATION. 2344 01:24:22,001 --> 01:24:26,000 30 NEW FEDERAL REGULATIONS 2345 01:24:26,001 --> 01:24:28,000 THROUGH THE FEDERAL RESERVE. 2346 01:24:28,001 --> 01:24:30,000 205 NEW REGULATIONS THROUGH THE SECURITIES AND EXCHANGE 2347 01:24:30,001 --> 01:24:32,000 COMMISSION. 2348 01:24:32,001 --> 01:24:35,000 AND THOSE ARE JUST SOME OF THEM. 2349 01:24:35,001 --> 01:24:36,000 ALL TOLD, THIS BILL WOULD IMPOS 2350 01:24:36,001 --> 01:24:39,000 533 NEW REGULATIONS ON 2351 01:24:39,001 --> 01:24:40,000 INDIVIDUALS AND SMALL 2352 01:24:40,001 --> 01:24:42,000 BUSINESSES, REGULATIONS THAT 2353 01:24:42,001 --> 01:24:43,000 WILL INEVITABLY LEAD TO THE KIND 2354 01:24:43,001 --> 01:24:45,000 OF CONFUSION AND UNCERTAINTY 2355 01:24:45,001 --> 01:24:46,000 THAT WILL MAKE IT EVEN HARDER 2356 01:24:46,001 --> 01:24:51,000 FOR STRUGGLING BUSINESSES TO DIG 2357 01:24:51,001 --> 01:24:53,000 THEMSELVES OUT OF THE RECESSION. 2358 01:24:53,001 --> 01:24:55,000 UNCERTAINTY THAT WILL DETER 2359 01:24:55,001 --> 01:24:59,000 LENDING AND FREEZE UP CREDIT. 2360 01:24:59,001 --> 01:25:00,000 AS LENDERS WAIT TO SEE HOW 2361 01:25:00,001 --> 01:25:01,000 THEY'LL BE AFFECTEDY THE NEW REGULATIONS. 2362 01:25:01,001 --> 01:25:03,000 AND IT'S JUST THIS KIND OF 2363 01:25:03,001 --> 01:25:06,000 UNCERTAINTY THAT BUSINESSES CITE 2364 01:25:06,001 --> 01:25:08,000 TIME AND TIME AGAIN AS ONE OF 2365 01:25:08,001 --> 01:25:09,000 THE GREATEST CHALLENGES TO OUR 2366 01:25:09,001 --> 01:25:10,000 ECONOMIC RECOVERY. 2367 01:25:10,001 --> 01:25:13,000 SO HERE'S A BILL THAT FAILS TO 2368 01:25:13,001 --> 01:25:15,000 ADDRESS THE ROOT CAUSES OF THE 2369 01:25:15,001 --> 01:25:17,000 KIND OF CRISIS IT MEANT TO 2370 01:25:17,001 --> 01:25:20,000 PREVENT, THAT CREATES A VAST, 2371 01:25:20,001 --> 01:25:21,000 NEW, UNACCOUNTABLE BUREAUCRACY 2372 01:25:21,001 --> 01:25:23,000 THAT, IF PAST EXPERIENCE IS ANY 2373 01:25:23,001 --> 01:25:26,000 GUIDE, WILL LEAD TO COUNTLESS 2374 01:25:26,001 --> 01:25:28,000 BURDENSOME UNINTENDED 2375 01:25:28,001 --> 01:25:30,000 CONSEQUENCES FOR INDIVIDUALS AND SMALL BUSINESSES. 2376 01:25:30,001 --> 01:25:31,000 A BILL THAT CONSTRICTS CREDIT 2377 01:25:31,001 --> 01:25:34,000 AND STIFLES GROWTH IN THE MIDDLE 2378 01:25:34,001 --> 01:25:35,000 OF THE WORST ECONOMIC PERIOD IN 2379 01:25:35,001 --> 01:25:36,000 MEMORY. 2380 01:25:36,001 --> 01:25:38,000 AND PERHAPS MOST DISTRESSING OF 2381 01:25:38,001 --> 01:25:40,000 ALL, A BILL THAT PUNISHES 2382 01:25:40,001 --> 01:25:42,000 FARMERS, FLORISTS, DOCTORS, 2383 01:25:42,001 --> 01:25:46,000 RETAILERS, AND COUNTLESS OTHERS 2384 01:25:46,001 --> 01:25:48,000 ACROSS THE COUNTRY AND FAR, FAR 2385 01:25:48,001 --> 01:25:52,000 AWAY FROM WALL STREET WHO HAD ABSOLUTELY NOTHING TO DO WITH 2386 01:25:52,001 --> 01:25:54,000 THE PANIC OF 2008. 2387 01:25:54,001 --> 01:25:56,000 IN OTHER WORDS, ONCE AGAIN THE 2388 01:25:56,001 --> 01:26:00,000 ADMINISTRATION AND ITS DEMOCRATIC ALLIES IN CONGRESS 2389 01:26:00,001 --> 01:26:01,000 HAVE TAKEN A CRISIS AND USED IT 2390 01:26:01,001 --> 01:26:02,000 RATHER THAN SOLVING IT. 2391 01:26:02,001 --> 01:26:03,000 W ELSE DO YOU EXPLAIN THE FACT 2392 01:26:03,001 --> 01:26:04,000 THAT A BILL THAT WAS MEANT TO 2393 01:26:04,001 --> 01:26:07,000 ADDRESS THE EXCESSES ON WALL 2394 01:26:07,001 --> 01:26:09,000 STREET IS EXPECTED TO HIT 2395 01:26:09,001 --> 01:26:11,000 INDIVIDUALS AND INDUSTRIES THAT 2396 01:26:11,001 --> 01:26:13,000 HAD NOTHING TO DO WITH THE 2397 01:26:13,001 --> 01:26:15,000 CRIS IT WAS MEANT TO PREVENT? 2398 01:26:15,001 --> 01:26:17,000 DID ANYBODY THINK THAT THIS BILL 2399 01:26:17,001 --> 01:26:19,000 WAS FIRST -- WHEN IT WAS FIRST 2400 01:26:19,001 --> 01:26:21,000 PROPOSED, THAT IT WOULD END UP 2401 01:26:21,001 --> 01:26:22,000 HITTING STOREFRONT CHECK 2402 01:26:22,001 --> 01:26:24,000 CASHERS, CITY GOVERNMENTS, SMALL 2403 01:26:24,001 --> 01:26:26,000 MANUFACTURERS, HOME BUYERS, 2404 01:26:26,001 --> 01:26:29,000 CREDIT BUREAUS, AND FARMERS IN 2405 01:26:29,001 --> 01:26:30,000 PLACES LIKE KANSAS AND KENTUCKY? 2406 01:26:30,001 --> 01:26:34,000 THIS IS PRECISELY THE KIND OF 2407 01:26:34,001 --> 01:26:36,000 THING AMERICANS ARE TIRED OF -- 2408 01:26:36,001 --> 01:26:37,000 A GOVERNMENT SIMPLY OUT OF CONTROL. 2409 01:26:37,001 --> 01:26:38,000 ONLY IN WASHINGTON WOULD YOU 2410 01:26:38,001 --> 01:26:39,000 CREATE A COMMISSION AIMED AT 2411 01:26:39,001 --> 01:26:40,000 LOOKING INTO THE CAUSES OF A 2412 01:26:40,001 --> 01:26:43,000 CRIS AND THEN PUT TOGETHER AND 2413 01:26:43,001 --> 01:26:44,000 PASS A 2,300-PAGE BILL IN 2414 01:26:44,001 --> 01:26:46,000 RESPONSE TO THAT CRISIS BEFORE 2415 01:26:46,001 --> 01:26:49,000 THE COMMISSION EVEN HAS A CHANCE 2416 01:26:49,001 --> 01:26:50,000 TO REPORT ITS FINDINGS AND ISSUE 2417 01:26:50,001 --> 01:26:53,000 RECOMMENDATIONS. 2418 01:26:53,001 --> 01:26:55,000 THE WHITE HOUSE WILL CALL THIS A 2419 01:26:55,001 --> 01:26:56,000 VICTORY BUT AS CREDIT TIGHTENS, 2420 01:26:56,001 --> 01:26:59,000 REGULATIONS MULTIPLY, AND JOB 2421 01:26:59,001 --> 01:27:00,000 CREATION SLOWS EVEN FURTHER AS A 2422 01:27:00,001 --> 01:27:03,000 RESULT OF THIS BILL, THEY'LL 2423 01:27:03,001 --> 01:27:04,000 HAVE A HARD TIME CONVINCING THE 2424 01:27:04,001 --> 01:27:06,000 AMERICAN PEOPLE THAT THIS IS A 2425 01:27:06,001 --> 01:27:07,000 VICTORY FOR THEM. 2426 01:27:07,001 --> 01:27:10,000 OBVIOUSLY, I WILL BE OPPOSING 2427 01:27:10,001 --> 01:27:12,000 THIS BILL AND I WOULD ENCOURAGE 2428 01:27:12,001 --> 01:27:13,000 MY COLLEAGUES TO OPPOSE IT AS 2429 01:27:13,001 --> 01:27:26,000 WELL. 2430 01:27:26,001 --> 01:27:27,000 MADAM PRESIDENT, I YIE 2431 01:27:27,001 --> 01:27:28,000 MR. DODD: NOTE THE ABSENCE OF A 2432 01:27:28,001 --> 01:27:31,000 QUORUM AND ASK THAT IT BE 2433 01:27:31,001 --> 01:27:37,000 EQUALLY CHARGED TO BOTH THE PRESIDING OFFICER: THE CLERK 2434 01:27:37,001 --> 01:29:26,000 WILL CALL THE ROLL. 2435 01:29:26,001 --> 01:29:29,000 QUORUM CALL: 2436 01:29:29,001 --> 01:29:30,000 QUORUM CALL: 2437 01:29:30,001 --> 01:29:32,000 THE PRESIDING OFFICER: THE MAJORITY LEADER. 2438 01:29:32,001 --> 01:29:33,000 MR. RE 2439 01:29:33,001 --> 01:29:34,000 CONSENT THE CALL OF THE QUORUM 2440 01:29:34,001 --> 01:29:36,000 BE TERMINATED. 2441 01:29:36,001 --> 01:29:42,000 THE PRESIDING OFFICER: WITHOUT OBJECTION. 2442 01:29:42,001 --> 01:29:44,000 MR. REID: MADAM PRESIDENT, THE 2443 01:29:44,001 --> 01:29:47,000 EARTHQUAKE THAT HIT -- HASN'T 2444 01:29:47,001 --> 01:29:48,000 HIT ANYWHERE AS HARD AS IT HIT 2445 01:29:48,001 --> 01:29:51,000 NEVADA. 2446 01:29:51,001 --> 01:29:52,000 AS SOON AS THE BIG BANKS WENT 2447 01:29:52,001 --> 01:29:54,000 DOWN, FORECLOSURE SIGNS WENT UP. 2448 01:29:54,001 --> 01:29:56,000 HOW DID THIS HAPPEN? 2449 01:29:56,001 --> 01:30:00,000 LET'S PUT IT THIS WAY. 2450 01:30:00,001 --> 01:30:02,000 WHEN YOU GO TO ANY -- PARDON ME. 2451 01:30:02,001 --> 01:30:04,000 WHEN YOU GO TO ANY OF THE GREAT 2452 01:30:04,001 --> 01:30:06,000 CASINOS ACRS NEVADA AND PUT 2453 01:30:06,001 --> 01:30:08,000 YOUR CHIPS ON THE TABLE, YOU'RE 2454 01:30:08,001 --> 01:30:09,000 GAMBLING WITH YOUR OWN MONEY. 2455 01:30:09,001 --> 01:30:11,000 YOU WIN, YOU WIN, AND IF YOU 2456 01:30:11,001 --> 01:30:13,000 LOSE, YOU LOSE. 2457 01:30:13,001 --> 01:30:15,000 BUT WALL STREET RIGGED THE GAME. 2458 01:30:15,001 --> 01:30:18,000 THEY PUT OUR MONEY ON THE TABLE. 2459 01:30:18,001 --> 01:30:19,000 WHEN THEY WON, THEY WON BIG. 2460 01:30:19,001 --> 01:30:20,000 THE JACKPOTS THEY TOOK HOME WERE 2461 01:30:20,001 --> 01:30:22,000 IN THE BILLIONS. 2462 01:30:22,001 --> 01:30:24,000 BUT WHEN THEY LOST -- AND BOY 2463 01:30:24,001 --> 01:30:25,000 DID THEY LOSE BIG -- THEY CAME 2464 01:30:25,001 --> 01:30:27,000 CRYING TO THE TAXPAYERS FOR HELP. 2465 01:30:27,001 --> 01:30:30,000 THE WINNINGS WERE THEIRS TO 2466 01:30:30,001 --> 01:30:31,000 ENJOY, BUT THE LOSSES WERE ALL 2467 01:30:31,001 --> 01:30:32,000 OF OURS, TO SHARE AND TO 2468 01:30:32,001 --> 01:30:34,000 SHOULDER. 2469 01:30:34,001 --> 01:30:36,000 THAT'S THE WAY THE MARKET WORKED. 2470 01:30:36,001 --> 01:30:38,000 IT WORKED FOR A FEW FORTUNATE 2471 01:30:38,001 --> 01:30:39,000 ONES IN THE BIG FIRMS AND WORKED 2472 01:30:39,001 --> 01:30:41,000 AGAINST EVERYONE ELSE. 2473 01:30:41,001 --> 01:30:43,000 SO WHEN I SAY THAT'S HOW THE 2474 01:30:43,001 --> 01:30:44,000 MARKET WORKED, WHAT I REALLY 2475 01:30:44,001 --> 01:30:47,000 MEAN IS THAT IT DIDN'T WORK AT ALL. 2476 01:30:47,001 --> 01:30:48,000 IT WAS BADLY BROKEN AND NEARLY 2477 01:30:48,001 --> 01:30:50,000 BANKRUPT US. 2478 01:30:50,001 --> 01:30:52,000 IT COST EHT MILLION WORKERS 2479 01:30:52,001 --> 01:30:54,000 THEIR JOBS, MILLIONS OF 2480 01:30:54,001 --> 01:30:59,000 THEIR SAVINGS AND MILLIONS OF FAMILIES THEIR HOMES. 2481 01:30:59,001 --> 01:31:00,000 IT SHATTERED OUR FAITH IN OUR 2482 01:31:00,001 --> 01:31:01,000 FINANCIAL SYSTEM. 2483 01:31:01,001 --> 01:31:02,000 BUT THERE IS ANOTHER PROBLEM. 2484 01:31:02,001 --> 01:31:03,000 WE HAVE BEEN TALKING ABOUT THIS 2485 01:31:03,001 --> 01:31:04,000 RIGGED SYSTEM, THIS RAW DEAL IN 2486 01:31:04,001 --> 01:31:06,000 THE PAST TENSE, BUT IT'S NOT 2487 01:31:06,001 --> 01:31:08,000 THANK OF THE PAST. 2488 01:31:08,001 --> 01:31:10,000 IT'S VERY MUCH IN THE PRESENT. 2489 01:31:10,001 --> 01:31:11,000 THE RULES THAT ALLOWED NEVADA'S 2490 01:31:11,001 --> 01:31:14,000 ECONOMY TO COLLAPSE ARE STILL 2491 01:31:14,001 --> 01:31:16,000 THE SAME RULES OF THE ROAD TODAY. 2492 01:31:16,001 --> 01:31:18,000 THAT MEANS EVERY NEW DAY WE 2493 01:31:18,001 --> 01:31:19,000 DON'T ACT, WE RUN THE RISK OF IT 2494 01:31:19,001 --> 01:31:21,000 HAPPENING ALL OVER AGAIN. 2495 01:31:21,001 --> 01:31:22,000 THAT'S A GAMBLE, MADAM 2496 01:31:22,001 --> 01:31:23,000 PRESIDENT, I'M NOT WILLING TO 2497 01:31:23,001 --> 01:31:24,000 TAKE. 2498 01:31:24,001 --> 01:31:27,000 THE BILL BEFORE US MAKES SURE WE 2499 01:31:27,001 --> 01:31:29,000 DON'T HAVE TO TAKE THAT GAMBLE. 2500 01:31:29,001 --> 01:31:30,000 THE FIRST QUESTION WAS HOW DID 2501 01:31:30,001 --> 01:31:32,000 THIS HAPPEN? 2502 01:31:32,001 --> 01:31:33,000 THE NEXT QUESTION IS WHAT ARE WE 2503 01:31:33,001 --> 01:31:37,000 GOING TO DO ABOUT IT? 2504 01:31:37,001 --> 01:31:41,000 NUMBER ONE, WE'RE SAYING TO 2505 01:31:41,001 --> 01:31:47,000 THOSE WHO GAINED -- SORRY, MADAM 2506 01:31:47,001 --> 01:31:49,000 PRESIDENT. 2507 01:31:49,001 --> 01:31:51,000 MR. REID: FIRST WE'RE SAYING TO 2508 01:31:51,001 --> 01:31:52,000 THOSE WHO GAMED THE SYSTEM THE 2509 01:31:52,001 --> 01:31:53,000 GAME'S OVER. 2510 01:31:53,001 --> 01:31:58,000 WE'RE CRACKING DOWN ON THOSE WHO 2511 01:31:58,001 --> 01:31:59,000 GAMBLE AWAY WHAT SO MANY HAVE 2512 01:31:59,001 --> 01:32:02,000 AND TWO, WE'RE SAYING TO THE 2513 01:32:02,001 --> 01:32:04,000 FAMILIES AND 2514 01:32:04,001 --> 01:32:06,000 AGAIN WILL WE BE ASKED TO BAIL 2515 01:32:06,001 --> 01:32:07,000 OUT A BIG BANK WHEN THE BANK 2516 01:32:07,001 --> 01:32:09,000 LOSES ITS RISKY BETS. 2517 01:32:09,001 --> 01:32:10,000 SO LET ME SAY THAT AGAIN BECAUSE 2518 01:32:10,001 --> 01:32:14,000 IT'S ONE OF THE MOST IMPORTANT 2519 01:32:14,001 --> 01:32:15,000 PARTS OF THIS BILL, NO MORE 2520 01:32:15,001 --> 01:32:16,000 BAILOUTS, BECAUSE NO BANK IS TOO 2521 01:32:16,001 --> 01:32:17,000 BIG TO FAIL. 2522 01:32:17,001 --> 01:32:20,000 WE'RE GOING TO GE CONSUMERS 2523 01:32:20,001 --> 01:32:21,000 AND INVESTORS THE STRONGEST 2524 01:32:21,001 --> 01:32:23,000 PROTECTIONS THEY HAVE EVER HAD 2525 01:32:23,001 --> 01:32:24,000 AGAINST ABUSIVE BANKS, MORTGAGE 2526 01:32:24,001 --> 01:32:26,000 COMPANIES, CREDIT CARD 2527 01:32:26,001 --> 01:32:27,000 COMPANIES, AND CREDIT RATING 2528 01:32:27,001 --> 01:32:30,000 AGENCIES. 2529 01:32:30,001 --> 01:32:31,000 WE'RE GOING TO BRING DERIVATIVE 2530 01:32:31,001 --> 01:32:32,000 MARKETS THAT OPERATE IN THE 2531 01:32:32,001 --> 01:32:34,000 DARKNESS OUT IN THE LIGHT. 2532 01:32:34,001 --> 01:32:35,000 WE'RE GOING TO HOLD WALL STREET 2533 01:32:35,001 --> 01:32:37,000 ACCOUNTABLE BECAUSE WE KNOW 2534 01:32:37,001 --> 01:32:38,000 WE'RE ACCOUNTABLE TO THE 2535 01:32:38,001 --> 01:32:40,000 AMERICAN PEOPLE. 2536 01:32:40,001 --> 01:32:41,000 THIS IS ABOUT OUR ABILITY TO 2537 01:32:41,001 --> 01:32:43,000 TRUST OUR FINANCIAL SYSTEM. 2538 01:32:43,001 --> 01:32:45,000 IT'S ABOUT GIVING FAMILIES THE 2539 01:32:45,001 --> 01:32:47,000 PEACE OF MIND THEY DESERVE, THE 2540 01:32:47,001 --> 01:32:48,000 PEACE OF MIND THAT COMES WITH 2541 01:32:48,001 --> 01:32:50,000 THE KNOWLEDGE THEY WILL BE ABLE 2542 01:32:50,001 --> 01:32:52,000 TO KEEP THEIR HES AND THEIR 2543 01:32:52,001 --> 01:32:55,000 SAVINGS WILL BE SAVED. 2544 01:32:55,001 --> 01:32:57,000 WE NEED THE FREE MARKET TO 2545 01:32:57,001 --> 01:33:00,000 THRIVE AND GROW AND SUCCEED. 2546 01:33:00,001 --> 01:33:03,000 WE ACKNOWLEDGE THAT. 2547 01:33:03,001 --> 01:33:05,000 BUT THERE ALSO HAVE TO BE SOME 2548 01:33:05,001 --> 01:33:07,000 RULES, NOT TO STIFLE IT BUT TO 2549 01:33:07,001 --> 01:33:09,000 SAFEGUARD US, RULES SO THAT WHEN 2550 01:33:09,001 --> 01:33:10,000 THESE FIRMS FAIL, THEY DON'T 2551 01:33:10,001 --> 01:33:12,000 BRING US DOWN WITH THEM. 2552 01:33:12,001 --> 01:33:14,000 WHEN THIS EARTHQUAK HIT, THERE 2553 01:33:14,001 --> 01:33:15,000 WASN'T NEARLY ENOUGH OVERSIGHT, 2554 01:33:15,001 --> 01:33:17,000 TRAINERS OR ACCOUNTABILITY TO 2555 01:33:17,001 --> 01:33:19,000 SHIELD US FROM THE FALLOUT. 2556 01:33:19,001 --> 01:33:22,000 THIS LAW WILL CHANGE THAT. 2557 01:33:22,001 --> 01:33:23,000 IT WILL STRENGTHEN ALL THREE. 2558 01:33:23,001 --> 01:33:25,000 WE'RE REALLY AT THE FINISH LINE 2559 01:33:25,001 --> 01:33:26,000 THIS MORNING, BUT GETTING HERE 2560 01:33:26,001 --> 01:33:30,000 HASN'T BEEN EASY. 2561 01:33:30,001 --> 01:33:31,000 WALL STREET DOESN'TIKE THIS BILL. 2562 01:33:31,001 --> 01:33:33,000 OF COURSE IT DOE'T. 2563 01:33:33,001 --> 01:33:35,000 WHY WOULD THEY WANT US TO CHANGE 2564 01:33:35,001 --> 01:33:38,000 THE SYSTEM THEY RIGGED, THE 2565 01:33:38,001 --> 01:33:40,000 SYSTEM THAT MADE THEM ALL RICH? 2566 01:33:40,001 --> 01:33:42,000 THEIR CRONIES IN WASHINGTON 2567 01:33:42,001 --> 01:33:43,000 DON'T LIKE IT EITHER. 2568 01:33:43,001 --> 01:33:45,000 THE TOP REPUBLICAN IN THE HOUSE 2569 01:33:45,001 --> 01:33:53,000 VERY PUBLICLY SAID THE PLIGHT OF 2570 01:33:53,001 --> 01:33:56,000 MILLIONS WASOF -- WAS AS SMALL AND 2571 01:33:56,001 --> 01:33:57,000 INSIGNIFICANT AS AN ANT. 2572 01:33:57,001 --> 01:33:58,000 FORECLOSURES, HOMES UNDER WATER, 2573 01:33:58,001 --> 01:34:00,000 JOBS LOST. 2574 01:34:00,001 --> 01:34:02,000 THE HEAD OF THE REPUBLICAN PARTY 2575 01:34:02,001 --> 01:34:04,000 ASKED US TO SIMPLY TRUST WALL 2576 01:34:04,001 --> 01:34:05,000 STREETO LOOK AFTER ITSELF. 2577 01:34:05,001 --> 01:34:06,000 WE ALL KNOW THIS CRISIS IS 2578 01:34:06,001 --> 01:34:08,000 ENORMOUS AND WE ALL KNOW THAT 2579 01:34:08,001 --> 01:34:09,000 WALL STREET ISN'T GOING TO 2580 01:34:09,001 --> 01:34:11,000 REFORM ITSELF. 2581 01:34:11,001 --> 01:34:12,000 RATHER THAN STANDING UP FOR THE 2582 01:34:12,001 --> 01:34:15,000 TAXPAYERS, THOSE WHO ARE ABOUT 2583 01:34:15,001 --> 01:34:17,000 TO VOTE NO ARE STANDING WITH THE 2584 01:34:17,001 --> 01:34:18,000 SAME BANKERS WHO GAMBLED AWAY 2585 01:34:18,001 --> 01:34:20,000 OUR JOBS AND OUR HOMES AND OUR 2586 01:34:20,001 --> 01:34:22,000 ECONOMIC SECURITY IN THE FIRST PLACE. 2587 01:34:22,001 --> 01:34:23,000 JUST LIKE THEIR WALL STREET 2588 01:34:23,001 --> 01:34:25,000 FRIENDS, IT SEEMS OUR OPPONENTS 2589 01:34:25,001 --> 01:34:27,000 CARE MORE ABOUT MAKING 2590 01:34:27,001 --> 01:34:28,000 SHORT-TERM GAINS THAN THEY DO 2591 01:34:28,001 --> 01:34:30,000 ABOUT WHAT'S RIGHT FOR THE 2592 01:34:30,001 --> 01:34:32,000 ECONOMY IN THE LONG RUN. 2593 01:34:32,001 --> 01:34:33,000 I THINK THAT'S A MISTAKE AND I 2594 01:34:33,001 --> 01:34:35,000 THINK IT'S A SHAME. 2595 01:34:35,001 --> 01:34:37,000 MADAM PRESIDENT, THIS ISN'T 2596 01:34:37,001 --> 01:34:39,000 ABOUT DOLLARS AND CENTS ONLY. 2597 01:34:39,001 --> 01:34:40,000 IT'SBOUT FAIRNESS, IT'S ABOUT 2598 01:34:40,001 --> 01:34:42,000 JUSTICE, IT'S ABOUT MAKING SURE 2599 01:34:42,001 --> 01:34:44,000 THAT THERE'S NOT A NEXT TIME. 2600 01:34:44,001 --> 01:34:46,000 IT'S ABOUT JOBS, IT'S ABOUT 2601 01:34:46,001 --> 01:34:49,000 RESCUING OUR ECONOMY. 2602 01:34:49,001 --> 01:34:50,000 I KNOW WALL STREET REFORM IS 2603 01:34:50,001 --> 01:34:51,000 COMPLICATED. 2604 01:34:51,001 --> 01:34:53,000 THERE AREN'T MANY PEOPLE WHO 2605 01:34:53,001 --> 01:34:54,000 KN ALL THE INS AND OUTS OF 2606 01:34:54,001 --> 01:34:56,000 DERIVATIVE TRADING, CREDIT 2607 01:34:56,001 --> 01:34:57,000 DEFAULT SWAPS OR MORTGAGE-BACKED 2608 01:34:57,001 --> 01:34:58,000 SECURITIES, BUT THE PRINCIPLE 2609 01:34:58,001 --> 01:35:00,000 BEFORE US IS REALLY QUITE SIMPLE. 2610 01:35:00,001 --> 01:35:01,000 IT'S NOT COMPLICATED AT ALL. 2611 01:35:01,001 --> 01:35:02,000 YOU EITHER BELIEVE THAT WE NEED 2612 01:35:02,001 --> 01:35:04,000 TO STRENGTHEN THE OVERSIGHT OF 2613 01:35:04,001 --> 01:35:06,000 WALL STREET OR YOU DON'T. 2614 01:35:06,001 --> 01:35:08,000 YOU EITHER BELIEVE THAT WE NEED TO STRENGTHEN PROTECTIONS FOR 2615 01:35:08,001 --> 01:35:10,000 CONSUMERS OR YOU DON'T. 2616 01:35:10,001 --> 01:35:12,000 OUR CHOICE TODAY IS BETWEEN 2617 01:35:12,001 --> 01:35:13,000 LEARNING FROM THE MISTAKES IN 2618 01:35:13,001 --> 01:35:21,000 THE PAST AND DANGEROUSLY LETTING 2619 01:35:21,001 --> 01:35:24,000 THEM HAPPEN ALL OVER AGAIN. 2620 01:35:24,001 --> 01:35:25,000 WILL REPORT THE MOTION TO INVOKE CLOTURE. 2621 01:35:25,001 --> 01:35:28,000 BY UNANIMOUS CONSENT, THE 2622 01:35:28,001 --> 01:35:29,000 MANDATORY QUORUM CALL HAS BEEN 2623 01:35:29,001 --> 01:35:31,000 WAIVED. 2624 01:35:31,001 --> 01:35:32,000 THCLERK: WE THE UNDERSIGNED 2625 01:35:32,001 --> 01:35:34,000 SENATORS IN ACCORDANCE WITH 2626 01:35:34,001 --> 01:35:35,000 PROVISIONS OF RULE 22 OFHE 2627 01:35:35,001 --> 01:35:36,000 STANDING RULES OF THE SENATE 2628 01:35:36,001 --> 01:35:37,000 HEREBY MOVE TO BRING TO A CLOSE 2629 01:35:37,001 --> 01:35:40,000 THE DEBATE ON THE CONFERENCE 2630 01:35:40,001 --> 01:35:42,000 REPORT TO ACCOMPANY H.R. 4173, THE WALL STREET REFORM AND 2631 01:35:42,001 --> 01:35:44,000 CONSUMER PROTECTION ACT, SIGNED 2632 01:35:44,001 --> 01:35:45,000 BY 17 SENAT 2633 01:35:45,001 --> 01:35:46,000 THE PRESIDING OFFICER: BY 2634 01:35:46,001 --> 01:35:47,000 UNANIMOUS CONSE 2635 01:35:47,001 --> 01:35:50,000 QUORUM CALL HAS BEEN WAIVED. 2636 01:35:50,001 --> 01:35:51,000 THE QUESTION IS IS I THE SENSE 2637 01:35:51,001 --> 01:35:53,000 OF THE SENATE THAT DEBATE ON THE 2638 01:35:53,001 --> 01:35:54,000 CONFERENCE REPORT TO ACCOMPANY 2639 01:35:54,001 --> 01:35:56,000 H.R. 4173, THE RESTORING 2640 01:35:56,001 --> 01:35:59,000 AMERICAN FINANCIAL STABILITY ACT 2641 01:35:59,001 --> 01:36:01,000 OF 2010, SHALL BE BROUGHT TO A CLOSE? 2642 01:36:01,001 --> 01:36:02,000 THE YEAS AND NAYS ARE MANDATORY 2643 01:36:02,001 --> 01:36:29,000 UNDER THE RULE. 2644 01:36:29,001 --> 01:59:34,000 THE CLERK WILL 2645 01:59:34,001 --> 02:01:16,000 VOTE: 2646 02:01:16,001 --> 02:01:17,000 VOTE: THE PRESIDING OFFICER: ARE 2647 02:01:17,001 --> 02:01:18,000 THERE ANY SENATORS IN THE 2648 02:01:18,001 --> 02:01:20,000 CHAMBER WISHING TO VOTE OR CHANGE THEIR VOTE? 2649 02:01:20,001 --> 02:01:21,000 ON THIS -- IF NONE, ON THIS 2650 02:01:21,001 --> 02:01:22,000 VOTE, THE DWRAIS ARE 60, THE 2651 02:01:22,001 --> 02:01:23,000 NAYS ARE 38. 2652 02:01:23,001 --> 02:01:25,000 THREE-FIFTHS OF THE SENATORS 2653 02:01:25,001 --> 02:01:26,000 DULY CHOSEN AND SWORN HAVING 2654 02:01:26,001 --> 02:01:30,000 VOTE 2655 02:01:30,001 --> 02:01:32,000 MOTION IS AGREED TO. 2656 02:01:32,001 --> 02:01:38,000 MR. GREGG: ARE WE READY FOR 2657 02:01:38,001 --> 02:01:41,000 THE POINT OF ORDER? 2658 02:01:41,001 --> 02:01:44,000 MR. DODD: MADAM PRESIDENT, THE 2659 02:01:44,001 --> 02:01:45,000 WILL THE SENATE BE IN ORDER. 2660 02:01:45,001 --> 02:01:47,000 THE PRESIDING OFFICER: THE 2661 02:01:47,001 --> 02:01:48,000 SENATE WILL BE IN ORDER. 2662 02:01:48,001 --> 02:01:50,000 MR. DODD: I AM ABOUT TO 2663 02:01:50,001 --> 02:01:51,000 PROPOSE A UNANIMOUS CONSENT 2664 02:01:51,001 --> 02:01:56,000 REQUEST. THE PRESIDING OFFICER: WILL 2665 02:01:56,001 --> 02:01:57,000 THE SENATOR SUSPEND. 2666 02:01:57,001 --> 02:01:59,000 MR. DODD: -- THAT HAS BEEN 2667 02:01:59,001 --> 02:02:00,000 AGREED TO BETWEEN THE RESPECTIVE LEADERS. 2668 02:02:00,001 --> 02:02:02,000 MADAM PRESIDENT, I ASK UNANIMOUS 2669 02:02:02,001 --> 02:02:04,000 CONSENT THAT THE POSTCLOTURE 2670 02:02:04,001 --> 02:02:05,000 TIME BE CONSIDERED EXPIRED AT 2671 02:02:05,001 --> 02:02:08,000 2:00 P.M., WITH THE TIME UNTIL 2672 02:02:08,001 --> 02:02:09,000 THEN EQUALLY DIVIDED AND 2673 02:02:09,001 --> 02:02:11,000 NTROLLED BETWEEN SENATORS DODD 2674 02:02:11,001 --> 02:02:13,000 AND SHELBY OR THEIR DESIGNEES. 2675 02:02:13,001 --> 02:02:15,000 DURING THAT PERIOD IF AND WHEN A 2676 02:02:15,001 --> 02:02:17,000 BUDGET POINT OF ORDER IS RAISED 2677 02:02:17,001 --> 02:02:19,000 AGAINST THE CONFERENCE REPORT, 2678 02:02:19,001 --> 02:02:20,000 THAT AN APPLICABLE WAIVER OF THE 2679 02:02:20,001 --> 02:02:22,000 POINT OF ORDER BE CONSIDERED MADE. 2680 02:02:22,001 --> 02:02:23,000 THAT AT 2:00 P.M., THE SENATE 2681 02:02:23,001 --> 02:02:26,000 PROCEED TO VOTE ON THE MOTION TO 2682 02:02:26,001 --> 02:02:27,000 WAIVE THE APPLICABLE BUDGET 2683 02:02:27,001 --> 02:02:28,000 POINT OF ORDER, THAT IF THE 2684 02:02:28,001 --> 02:02:30,000 WAIVE CERTIFICATE SUCCESSFUL YOU 2685 02:02:30,001 --> 02:02:31,000 WITHOUT FURTHER INTERVENING 2686 02:02:31,001 --> 02:02:32,000 TION OR DEBATE, THE SENATE 2687 02:02:32,001 --> 02:02:33,000 VOTE ON ADONGS OF THE CONFERENCE 2688 02:02:33,001 --> 02:02:35,000 REPORT. 2689 02:02:35,001 --> 02:02:36,000 THE PRESIDING OFFICER: IS 2690 02:02:36,001 --> 02:02:38,000 THERE AN OBJECTION? 2691 02:02:38,001 --> 02:02:39,000 WITHOUT OBJECTION, SO ORDERED. 2692 02:02:39,001 --> 02:02:40,000 MR. DODD: MADAM PRESIDENT, I 2693 02:02:40,001 --> 02:02:42,000 YIELD THE FLOOR. 2694 02:02:42,001 --> 02:02:43,000 GRIGG GREG MADAM PRESIDENT, AT 2695 02:02:43,001 --> 02:02:44,000 THIS POINT I AM GOING TO MAKE A 2696 02:02:44,001 --> 02:02:47,000 POINT OF ORDER THAT THE SENATOR 2697 02:02:47,001 --> 02:02:49,000 FROM CONNECTICUT ALLUDED TO. 2698 02:02:49,001 --> 02:02:51,000 WE HAVE RULES AROUND HERE THAT 2699 02:02:51,001 --> 02:02:53,000 WE'VE SET UP TO DISCIPLINE 2700 02:02:53,001 --> 02:02:54,000 OURSELVES ON SPENDING. 2701 02:02:54,001 --> 02:02:56,000 UNFORTUNATELY, WE CONSISTENTLY 2702 02:02:56,001 --> 02:02:57,000 IGNORE AND WAIVE THEM. 2703 02:02:57,001 --> 02:02:58,000 THAT'S ONE OF THE REASONS WHY 2704 02:02:58,001 --> 02:03:00,000 WE'VE A $13 TRILLION DEBT. 2705 02:03:00,001 --> 02:03:01,000 THAT'S WHY WE'VE GOT -- ONE OF 2706 02:03:01,001 --> 02:03:03,000 THE REASONS WHY WE'RE GOING TO 2707 02:03:03,001 --> 02:03:06,000 HAVE A $1.4 TRILLION DEFICIT 2708 02:03:06,001 --> 02:03:09,000 THIS YEAR ALONE. 2709 02:03:09,001 --> 02:03:10,000 THIS BILL VIOLATES THOSE RULES. 2710 02:03:10,001 --> 02:03:13,000 THIS BILL VIOLATES ONE OF THE 2711 02:03:13,001 --> 02:03:14,000 SECTIONS OF THOSE RULES WHICH 2712 02:03:14,001 --> 02:03:16,000 STHAIS IN ANY TEN-YEAR PERIOD 2713 02:03:16,001 --> 02:03:17,000 YOU SHALL NOT HAVE MORE THAN A 2714 02:03:17,001 --> 02:03:19,000 $5 BILLION EFFECT ON THE 2715 02:03:19,001 --> 02:03:21,000 DEFICIT. 2716 02:03:21,001 --> 02:03:23,000 -- IN A NEGATIVE WAY, WHICH YOU 2717 02:03:23,001 --> 02:03:25,000 NEED TO OTHERWISE PAY FOR WHAT YOU'RE DOING. 2718 02:03:25,001 --> 02:03:28,000 THEREFORE, THIS BILL DOES 2719 02:03:28,001 --> 02:03:30,000 VIOLATE OUR BUDGET ACT, AND IF 2720 02:03:30,001 --> 02:03:31,000 WE'RE GOING TO HAVE ANY FISCAL 2721 02:03:31,001 --> 02:03:32,000 DISCIPLINE AROUND HERE -- AND WE 2722 02:03:32,001 --> 02:03:34,000 HEAR A LOT OF PEOPLE TALKING 2723 02:03:34,001 --> 02:03:35,000 ABOUT HOW WE'RE GOING TO HAVE 2724 02:03:35,001 --> 02:03:37,000 FISCAL DISCIPLINE AROUND HERE -- 2725 02:03:37,001 --> 02:03:40,000 WE SHOULD BE LIVING BY THE RULES 2726 02:03:40,001 --> 02:03:42,000 TWOAF ASSERT FISCAL -- BY THE 2727 02:03:42,001 --> 02:03:44,000 RULES WE HAVE TO ASSERT FISCAL DISCIPLINE. 2728 02:03:44,001 --> 02:03:46,000 THEREFORE, I MAKE A POINT OF 2729 02:03:46,001 --> 02:03:52,000 ORDER THAT THE BILL VIOLATES 2730 02:03:52,001 --> 02:03:53,000 SECTION 31 OF THE BUDGET ACT. 2731 02:03:53,001 --> 02:03:54,000 MR. DODD: THE SENATE IS NOT IN 2732 02:03:54,001 --> 02:03:55,000 ORDER. 2733 02:03:55,001 --> 02:03:56,000 -- 2734 02:03:56,001 --> 02:04:02,000 THE PRESIDING OFFICER: THE 2735 02:04:02,001 --> 02:04:03,000 CHAMBER WILL BE IN ORDER. 2736 02:04:03,001 --> 02:04:06,000 MR. DODD: MADAM PRESIDENT, 2737 02:04:06,001 --> 02:04:07,000 PURSUANT TO SECTION 904 OF THE 2738 02:04:07,001 --> 02:04:09,000 CONGRESSIONAL BUDGET ACT OF 1974 2739 02:04:09,001 --> 02:04:10,000 AND THE WAIVER PROVISIONS OF 2740 02:04:10,001 --> 02:04:12,000 APPLICABLE BUDGET RESOLUTIONS, I 2741 02:04:12,001 --> 02:04:16,000 MOVE TO WAIVE ALL APPLICABLE 2742 02:04:16,001 --> 02:04:18,000 ACTIONS OF BUDGET ACT RESOLUTIONS FOR THE PURPOSES OF 2743 02:04:18,001 --> 02:04:19,000 THE PENDING CONFERENCE ROMPLET I 2744 02:04:19,001 --> 02:04:20,000 ASK FOR THE Y 2745 02:04:20,001 --> 02:04:21,000 THAT. THE PRESIDING OFFICER: IS 2746 02:04:21,001 --> 02:04:30,000 THERE A SUFFICIENT SECOND? 2747 02:04:30,001 --> 02:04:32,000 THERE APPEARS TO BE. 2748 02:04:32,001 --> 02:04:34,000 MR. 2749 02:04:34,001 --> 02:04:35,000 WILL OCCUR SOMEWHERE AROUND 2:00 P.M.? 2750 02:04:35,001 --> 02:04:37,000 THE PRESIDING OFFICER: THE SENATOR IS CORRECT. 2751 02:04:37,001 --> 02:04:38,000 THE SENATOR FROM TEXAS. 2752 02:04:38,001 --> 02:04:39,000 MRS. HUT 2753 02:04:39,001 --> 02:04:42,000 PRESIDENT, DID THE DISTINGUISHED 2754 02:04:42,001 --> 02:04:43,000 CHAIRMAN NEED TO ADD ANYTHING MORE? 2755 02:04:43,001 --> 02:04:45,000 MR. DODD: I'LL RESPOND TO MY 2756 02:04:45,001 --> 02:04:47,000 GOOD FRIEND AND COLLEAGUE FROM 2757 02:04:47,001 --> 02:04:48,000 NEW HAMPSHIRE IN DUE TIME. 2758 02:04:48,001 --> 02:04:50,000 BUT -- LET ME JUST SAY, BY THE 2759 02:04:50,001 --> 02:04:52,000 WAY, I SEE THAT MY COLLEAGUE 2760 02:04:52,001 --> 02:04:54,000 FROM TEXAS IS SEEKING RECOGNITION. 2761 02:04:54,001 --> 02:04:56,000 I WANT TO PUBLICLY THANK HER. 2762 02:04:56,001 --> 02:04:57,000 SHE MADE A SUBSTANTIAL 2763 02:04:57,001 --> 02:04:59,000 CONTRIBUTION TO THIS BILL ON 2764 02:04:59,001 --> 02:05:00,000 SEVERAL AMENDMENTS THAT WERE 2765 02:05:00,001 --> 02:05:02,000 ADOPTED DURING THE SENATE DEBATE 2766 02:05:02,001 --> 02:05:04,000 ON THE FLOOR. 2767 02:05:04,001 --> 02:05:05,000 AND I WANT TO THANK HER FOR THEM. 2768 02:05:05,001 --> 02:05:06,000 THEY WERE -- THEY WERE -- THEY 2769 02:05:06,001 --> 02:05:07,000 ADDED TO THE VALUE OF THE 2770 02:05:07,001 --> 02:05:09,000 LEGISLATION. 2771 02:05:09,001 --> 02:05:11,000 AND SO I'M NOT SURE WHAT HER 2772 02:05:11,001 --> 02:05:13,000 COMMENTS ARE GOING TO BE RIGHT 2773 02:05:13,001 --> 02:05:15,000 NOW, BUT I WANT TO THANK HER FOR 2774 02:05:15,001 --> 02:05:16,000 THOSE CONTRIBUTIONS. 2775 02:05:16,001 --> 02:05:18,000 THE PRESIDING OFFICER: WILL 2776 02:05:18,001 --> 02:05:22,000 THE GENTLELADY SUSPEND. 2777 02:05:22,001 --> 02:05:24,000 WILL THE SENATE PLEASE BE THE 2778 02:05:24,001 --> 02:05:25,000 --WILL THE SENATE PLEASE BE IN 2779 02:05:25,001 --> 02:05:27,000 ORDER. 2780 02:05:27,001 --> 02:05:28,000 MRS. HUTCHISON: I APPRECIATE 2781 02:05:28,001 --> 02:05:30,000 THE COMMENTS OF THE CHAIRMAN 2782 02:05:30,001 --> 02:05:31,000 BECAUSE I WAS GOING TO MENTION 2783 02:05:31,001 --> 02:05:33,000 THAT HE ACCOMMODATED MANY OF THE 2784 02:05:33,001 --> 02:05:34,000 AMENDMENTS THAT I HAD, 2785 02:05:34,001 --> 02:05:36,000 RTICULARLY AS IT CONCERNS 2786 02:05:36,001 --> 02:05:38,000 COMMUNITY BANKS. 2787 02:05:38,001 --> 02:05:40,000 THAT WAS A HUGE CONCERN IN THE 2788 02:05:40,001 --> 02:05:43,000 ORIGINAL DRAFT OF THE BILL, AND 2789 02:05:43,001 --> 02:05:44,000 I THANK THE CHAIRN FOR 2790 02:05:44,001 --> 02:05:46,000 ACCOMMODATING THOSE CONCERNS, 2791 02:05:46,001 --> 02:05:47,000 AND I THINK IT DID MAKE IT A 2792 02:05:47,001 --> 02:05:51,000 BETTER BILL. 2793 02:05:51,001 --> 02:05:52,000 I WANT TO GO BACK TO THE 2794 02:05:52,001 --> 02:05:54,000 AFTERMATH OF THE FINANCIAL 2795 02:05:54,001 --> 02:05:57,000 CRISIS WHERE CONGRESS WAS TASKED 2796 02:05:57,001 --> 02:05:59,000 WITH A GREAT RESPONSIBILITY OF 2797 02:05:59,001 --> 02:06:00,000 MODERNIZING OUR FINANCIAL 2798 02:06:00,001 --> 02:06:02,000 REGULATORY STRUCTURE SO THAT WE 2799 02:06:02,001 --> 02:06:03,000 WOULD HAVE PROPER OVERSIGHT OF 2800 02:06:03,001 --> 02:06:05,000 TODAY'S BANKING SYSTEM AND 2801 02:06:05,001 --> 02:06:07,000 FINANCIAL MARKETS. 2802 02:06:07,001 --> 02:06:09,000 WE WERE CALLED TO FILL IN GAPS 2803 02:06:09,001 --> 02:06:10,000 IN REGULATION WHICH ALLOWED 2804 02:06:10,001 --> 02:06:12,000 AMERICAN HOME BUYERS TO SIMPLY 2805 02:06:12,001 --> 02:06:14,000 SIGN ON A DOTTED LINE TO 2806 02:06:14,001 --> 02:06:16,000 PURCHASE A HOUSE THAT WAS, IN 2807 02:06:16,001 --> 02:06:17,000 MANY INSTANCES, BEYOND THEIR 2808 02:06:17,001 --> 02:06:19,000 MEANS. 2809 02:06:19,001 --> 02:06:21,000 TO LET COMPANIES HIDE TRILLIONS 2810 02:06:21,001 --> 02:06:23,000 OF DOLLARS IN ASSETS FROM 2811 02:06:23,001 --> 02:06:25,000 REGULATORS, AND ULTIMATELY LED 2812 02:06:25,001 --> 02:06:28,000 OUR GOVERNMENT TO USE HUNDREDS 2813 02:06:28,001 --> 02:06:30,000 OF BILLIONS OF TAXPAYER DOLLARS 2814 02:06:30,001 --> 02:06:32,000 TO BAIL OUT FINANCIAL 2815 02:06:32,001 --> 02:06:35,000 INSTITUTIONS, FANNIE MAE, 2816 02:06:35,001 --> 02:06:36,000 FREDDIE MAC, G.M., CHRYSLER AND 2817 02:06:36,001 --> 02:06:38,000 A.I.G. 2818 02:06:38,001 --> 02:06:40,000 THUS, FOR FINANCIALLY REGULATORY 2819 02:06:40,001 --> 02:06:41,000 REFORM TO SUCCEED, WE NEEDED TO 2820 02:06:41,001 --> 02:06:42,000 ENHANCE OUR MORTGAGE 2821 02:06:42,001 --> 02:06:44,000 UNDERWRITING STANDARDS, BRING 2822 02:06:44,001 --> 02:06:45,000 GREATER TRANSPARENCY TO OUR 2823 02:06:45,001 --> 02:06:49,000 DERITIVES MARKETS, AND ONCE 2824 02:06:49,001 --> 02:06:51,000 AND FOR ALL END TOO BIG TO FAIL. 2825 02:06:51,001 --> 02:06:55,000 THE CONFERENCE REPORT BEFORE US 2826 02:06:55,001 --> 02:07:00,000 TOOK STEPS TOWARDS THESE GOALS. 2827 02:07:00,001 --> 02:07:03,000 IT POTS IN MEASURE -- IT PUTS IN -- 2828 02:07:03,001 --> 02:07:05,000 IT FALLS SHORT OF FULLING 2829 02:07:05,001 --> 02:07:06,000 ADDRESSING FUTURE BAILOUTS BY 2830 02:07:06,001 --> 02:07:09,000 FAILING TO MAKE CHANGES TO THE BANKRUPTCY CODE. 2831 02:07:09,001 --> 02:07:11,000 I BELIEVE WE'VE ALSO IN THIS 2832 02:07:11,001 --> 02:07:13,000 BILL MADE STRIDES TO STRENGTHEN 2833 02:07:13,001 --> 02:07:17,000 MORTGAGE UNDERWRITING STANDARDS. 2834 02:07:17,001 --> 02:07:18,000 I'M CONCERN THAT A NEWLY 2835 02:07:18,001 --> 02:07:20,000 FORMED CONSUMER PROTECTION 2836 02:07:20,001 --> 02:07:21,000 BUREAU WILL TAKE THE LEAD RATHER 2837 02:07:21,001 --> 02:07:23,000 THAN OUR BANKING INSTITUTIONS, 2838 02:07:23,001 --> 02:07:24,000 AND THIS IS ONE OF THE BIGGEST 2839 02:07:24,001 --> 02:07:25,000 CONCERNS THAT I HAVE WITH THE 2840 02:07:25,001 --> 02:07:27,000 BILL. 2841 02:07:27,001 --> 02:07:29,000 I'M PLEASED THAT THE CONFERENCE 2842 02:07:29,001 --> 02:07:31,000 REPORT INCLUDES NUMEROUS 2843 02:07:31,001 --> 02:07:32,000 MEASURES FOR WHICH I FOUGHT, AND 2844 02:07:32,001 --> 02:07:34,000 I DO WANT TO THANK CHAIRMAN DODD 2845 02:07:34,001 --> 02:07:36,000 FOR HIS WILLINGNESS TO WORK WITH 2846 02:07:36,001 --> 02:07:39,000 ME AND HIS CONSTRUCTIVE APPROACH 2847 02:07:39,001 --> 02:07:41,000 TO MAKING CHANGES TO THE BILL. 2848 02:07:41,001 --> 02:07:43,000 INCLUDING A MORE LEVEL PLAYING 2849 02:07:43,001 --> 02:07:45,000 FIELD FOR COMMUNITY BANKS ACROSS 2850 02:07:45,001 --> 02:07:48,000 OUR COUNTRY TO COMPETE THROUGH 2851 02:07:48,001 --> 02:07:51,000 THE AMENDMENT TO BRING PARITY TO 2852 02:07:51,001 --> 02:07:52,000 FDIC INSURANCE ASSESSMENTS. 2853 02:07:52,001 --> 02:07:55,000 MY AMENDMENT ALONG WITH SENATOR 2854 02:07:55,001 --> 02:07:56,000 KLOBUCHAR TO ALLOW 2855 02:07:56,001 --> 02:07:59,000 STATE-CHARTERED BANKS AND SMALL- 2856 02:07:59,001 --> 02:08:02,000 AND MEDIUM-SIZED BANK HOLDING 2857 02:08:02,001 --> 02:08:03,000 COMPANIES TO RETAIN FEDERAL 2858 02:08:03,001 --> 02:08:05,000 SUPERVISORY SUPERVISION SO THAT 2859 02:08:05,001 --> 02:08:06,000 OUR MONETARY POLICY REFLECTS THE 2860 02:08:06,001 --> 02:08:07,000 ECONOMIC CONDITIONS THROUGHOUT 2861 02:08:07,001 --> 02:08:09,000 OUR COUNT, NOT JUST ON WALL 2862 02:08:09,001 --> 02:08:12,000 STREET. 2863 02:08:12,001 --> 02:08:13,000 RELIEF FOR SMALL- AND 2864 02:08:13,001 --> 02:08:17,000 MEDIUM-SIZED PUBLIC COMPANIES 2865 02:08:17,001 --> 02:08:21,000 FROM THE BURDEN OF RULE 404-B OF SARBANES-OXLEY. 2866 02:08:21,001 --> 02:08:23,000 ASSURANCE THAT THE VOLCKER RULES 2867 02:08:23,001 --> 02:08:25,000 PROPRIETARY TRADING RESTRICTIONS 2868 02:08:25,001 --> 02:08:26,000 WILL NOT EXTEND TO 2869 02:08:26,001 --> 02:08:28,000 AFFILIATES OF INSURANCE 2870 02:08:28,001 --> 02:08:29,000 COMPANIES WITH DEPOSITORY INSTITUTIONS. 2871 02:08:29,001 --> 02:08:30,000 THESE ARE POSITIVE CHANGES FOR 2872 02:08:30,001 --> 02:08:33,000 WHICH THE GIVE THE CHAIRMAN 2873 02:08:33,001 --> 02:08:34,000 GREAT CREDIT. 2874 02:08:34,001 --> 02:08:38,000 HOWEVER, THESE POSITIVE CHANGES 2875 02:08:38,001 --> 02:08:40,000 ARE GREATLY OUTWEIGHED BY THE 2876 02:08:40,001 --> 02:08:41,000 MISPLACED PRIORITIES TO CREATE 2877 02:08:41,001 --> 02:08:43,000 NEW LAYERS OF BUREAUCRACY WHILE 2878 02:08:43,001 --> 02:08:45,000 FAILING TO ADDRESS THE ROOT 2879 02:08:45,001 --> 02:08:48,000 CAUSES OF THE FINANCIAL CRISIS. 2880 02:08:48,001 --> 02:08:49,000 FANNIE MAE AND FREDDIE MAC. 2881 02:08:49,001 --> 02:08:51,000 ADDITIONALLY, THERE ARE A SERIES 2882 02:08:51,001 --> 02:08:53,000 OF PROVISIONS THAT ARE TROUBLING 2883 02:08:53,001 --> 02:08:56,000 TO ME. 2884 02:08:56,001 --> 02:08:57,000 NUMBER ONE IS THIS CONSUMER 2885 02:08:57,001 --> 02:09:00,000 PROTECTION BUREAU. 2886 02:09:00,001 --> 02:09:01,000 IT IS USING THE FAULTS OF WALL 2887 02:09:01,001 --> 02:09:04,000 STREET BANKS AND EXECUTIVES TO 2888 02:09:04,001 --> 02:09:06,000 CREATE A CUMBERSOME NEW 2889 02:09:06,001 --> 02:09:07,000 BUREAUCRACY WHICH WILL IMPOSE 2890 02:09:07,001 --> 02:09:09,000 JOB-KILLING REGULATIONS AT THE 2891 02:09:09,001 --> 02:09:12,000 EXPENSE OF MAIN STREET, SMALL 2892 02:09:12,001 --> 02:09:14,000 BUSINESSES, AND FAMILIES. 2893 02:09:14,001 --> 02:09:17,000 THE CONSUMERS FINANCIAL 2894 02:09:17,001 --> 02:09:18,000 PROTECTION BUREAU WITH ENDLESS 2895 02:09:18,001 --> 02:09:20,000 AUTHORITY OVER ALL IF A SETS OF 2896 02:09:20,001 --> 02:09:21,000 OUR ECONOMY IS NOT THE ANSWER. 2897 02:09:21,001 --> 02:09:23,000 I AM PARTICULARLY CONCERNED 2898 02:09:23,001 --> 02:09:26,000 ABOUT THE EFFECT THIS BUREAU 2899 02:09:26,001 --> 02:09:29,000 WILL HAVE ON WELL-REGULATED, 2900 02:09:29,001 --> 02:09:32,000 SAFE, SOUND COMMUNITY BANKS. 2901 02:09:32,001 --> 02:09:34,000 THE BANKS LARGELY AVOIDED THE 2902 02:09:34,001 --> 02:09:36,000 SUBPRIME MARKET AND THEY DIDN'T 2903 02:09:36,001 --> 02:09:38,000 ENGAGE IN THE RISKY SPECULATIVE 2904 02:09:38,001 --> 02:09:40,000 TRADES THAT CONTRIBUTED TO THE 2905 02:09:40,001 --> 02:09:41,000 FINANCIAL MELTDOWN. 2906 02:09:41,001 --> 02:09:44,000 HOVER, THESE COMMUNITY BANKS 2907 02:09:44,001 --> 02:09:46,000 ARE GOING TO HAVE 27 NEW OR 2908 02:09:46,001 --> 02:09:49,000 EXPANDED TYPES OF REGULATION 2909 02:09:49,001 --> 02:09:51,000 AFTER THIS BILL IS PASSED. 2910 02:09:51,001 --> 02:09:52,000 THE CONSUMER BUREAU COULD 2911 02:09:52,001 --> 02:09:54,000 ULTIMATELY DETERMINE WHAT 2912 02:09:54,001 --> 02:09:56,000 PRODUCTS COMMUNITY BANKS CAN 2913 02:09:56,001 --> 02:09:57,000 OFFERINGS ON WHAT TERMS THEY CAN 2914 02:09:57,001 --> 02:10:00,000 OFFER THESE PRODUS AND UNDER 2915 02:10:00,001 --> 02:10:02,000 WHAT SETTINGS AND CIRCUMSTANCES. 2916 02:10:02,001 --> 02:10:04,000 OVERALL, THE CONSUMER BUREAU 2917 02:10:04,001 --> 02:10:05,000 WILL RESULT IN FEWER PRODUCTS 2918 02:10:05,001 --> 02:10:06,000 AND SERVICES FOR AMERICAN 2919 02:10:06,001 --> 02:10:10,000 FAMILIES AND SMALL BUSINESSES 2920 02:10:10,001 --> 02:10:13,000 .THE TEXAS BANKERS ASSOCIATION 2921 02:10:13,001 --> 02:10:16,000 TELLS ME THE CONSUMER AGENCY -- 2922 02:10:16,001 --> 02:10:18,000 THE CONSUMER BUREAU RULES COULD 2923 02:10:18,001 --> 02:10:20,000 RESULT IN THE END OF FREE 2924 02:10:20,001 --> 02:10:22,000 CHECKING ACCOUNTS, HIGHER FEES 2925 02:10:22,001 --> 02:10:23,000 ON ALL CONSUMER SERVICES AND 2926 02:10:23,001 --> 02:10:24,000 LESS OPPORTUNITY TO NEGOTIATOR 2927 02:10:24,001 --> 02:10:25,000 ON LOANS. 2928 02:10:25,001 --> 02:10:28,000 THAT'S ACCORDING TO THE TEXAS 2929 02:10:28,001 --> 02:10:29,000 BANKERS ASSOCIATION. 2930 02:10:29,001 --> 02:10:31,000 IT'S NOT THE BIG BANKS ON WALL 2931 02:10:31,001 --> 02:10:33,000 STREET VOICING CONCERNS AND 2932 02:10:33,001 --> 02:10:35,000 OPPOSITION TO THIS BILL. 2933 02:10:35,001 --> 02:10:37,000 THE OPPOSITION IS COMING FROM 2934 02:10:37,001 --> 02:10:39,000 COMMUNITY BANKERS IN TEXAS WHO 2935 02:10:39,001 --> 02:10:42,000 ARE WORRIED THAT THEY WILL BE 2936 02:10:42,001 --> 02:10:44,000 UNDULY PENALIZED FOR FAULTS THEY 2937 02:10:44,001 --> 02:10:45,000 DID NOT COMMIT. 2938 02:10:45,001 --> 02:10:48,000 SMALL BUSINESSES ARE ALSO 2939 02:10:48,001 --> 02:10:49,000 AGAINST THIS NEW CONSUMER BUREAU. 2940 02:10:49,001 --> 02:10:51,000 THE U.S. CHAMBER OF COMMERCE AND 2941 02:10:51,001 --> 02:10:53,000 THE NATIONAL FEDERATION OF 2942 02:10:53,001 --> 02:10:56,000 INDEPENDENT BUSINESS IS VERY 2943 02:10:56,001 --> 02:10:58,000 CONCERNED ABOUT THIS BILL. 2944 02:10:58,001 --> 02:10:59,000 WE NEED COMMUNITY BANKS TO 2945 02:10:59,001 --> 02:11:01,000 CONTINUE EXTENDING CREDIT TO 2946 02:11:01,001 --> 02:11:03,000 WORTHY FAMILIES LOOKING FOR A 2947 02:11:03,001 --> 02:11:06,000 HOME AND TO SMALL BUSINESSES TO 2948 02:11:06,001 --> 02:11:08,000 INVEST IN AND CREATE JOBS. 2949 02:11:08,001 --> 02:11:10,000 I COSPONSORED AN AMENDMENT 2950 02:11:10,001 --> 02:11:12,000 DURING SENATE CONSIDERION TO 2951 02:11:12,001 --> 02:11:13,000 ENSURE THAT SAFETY AND SOUNDNESS 2952 02:11:13,001 --> 02:11:16,000 REGULATORS WOULD HAVE A SAY IN 2953 02:11:16,001 --> 02:11:18,000 THE RULES AND REGULATIONS 2954 02:11:18,001 --> 02:11:21,000 IMPOSED ON THEIR INSTITUTIONS. 2955 02:11:21,001 --> 02:11:22,000 THAT AMENDMENT WAS REJECTED 2956 02:11:22,001 --> 02:11:25,000 LEAVING COMMUNITY BANKS SUBJECT 2957 02:11:25,001 --> 02:11:27,000 TO THE THIS NEW BUREAU'S 2958 02:11:27,001 --> 02:11:29,000 UNLIMITED AND UNCHECKED 2959 02:11:29,001 --> 02:11:30,000 RULE-MAKING AUTHORITY. 2960 02:11:30,001 --> 02:11:32,000 I'M ALSO CONCERNED WITH THE 2961 02:11:32,001 --> 02:11:33,000 TREATMENT OF DERIVATIVES IN THIS 2962 02:11:33,001 --> 02:11:36,000 LEGISLATION. 2963 02:11:36,001 --> 02:11:39,000 I AM ALSO CONCERNED ABOUT THE 2964 02:11:39,001 --> 02:11:42,000 LACK OF TRANSPARENCY THAT WAS 2965 02:11:42,001 --> 02:11:43,000 NEEDED AND HAS BEEN EXCHANGED 2966 02:11:43,001 --> 02:11:47,000 FOR A REGULATION THAT I DO NOT 2967 02:11:47,001 --> 02:11:48,000 THINK IS GOING TO PROPERLY 2968 02:11:48,001 --> 02:11:50,000 REGULATE DERIVATIVES. 2969 02:11:50,001 --> 02:11:51,000 MADAM PRESIDENT, I HAVE A 2970 02:11:51,001 --> 02:11:54,000 FURTHER STATEMENT, BUT I'M GOING 2971 02:11:54,001 --> 02:11:56,000 TO PUT IT IN THE RECORD BECAUSE 2972 02:11:56,001 --> 02:11:59,000 I THINK THAT WE NEED TO FULLY 2973 02:11:59,001 --> 02:12:00,000 LOOK AT SOME OF THE CONCERNS IN 2974 02:12:00,001 --> 02:12:05,000 THIS BILL, WITH THE HOPE THAT 2975 02:12:05,001 --> 02:12:07,000 WHEN IT PASSES, WHICH IT WILL -- 2976 02:12:07,001 --> 02:12:08,000 I CANNOT SUPPORT IT, BUT IT WILL 2977 02:12:08,001 --> 02:12:11,000 PASS -- BUT THESE CAUTIONS 2978 02:12:11,001 --> 02:12:15,000 SHOULD BE LOOKED AT GOING 2979 02:12:15,001 --> 02:12:18,000 FORWARD TO PERHAPS WHEN THE 2980 02:12:18,001 --> 02:12:21,000 PROBLEMS COME TO LIGHT LATER WE 2981 02:12:21,001 --> 02:12:23,000 COULD, I HOPE, MAKE SOME CHANGES 2982 02:12:23,001 --> 02:12:25,000 TO THE LAW GOING FORWARD THAT 2983 02:12:25,001 --> 02:12:27,000 WILL BETTER ACCOMMODATE THE 2984 02:12:27,001 --> 02:12:28,000 NEEDS OF CONSUMERS AND SMALL 2985 02:12:28,001 --> 02:12:29,000 BUSINESSES AND COMMUNITY BANKS 2986 02:12:29,001 --> 02:12:33,000 IN OUR COUNTRY. 2987 02:12:33,001 --> 02:12:35,000 I DO WANT TO END BY SAYING THAT 2988 02:12:35,001 --> 02:12:36,000 THERE ARE GOOD PARTS OF THIS 2989 02:12:36,001 --> 02:12:37,000 BILL. 2990 02:12:37,001 --> 02:12:40,000 AND I THINK THE CHAIRMAN 2991 02:12:40,001 --> 02:12:43,000 DESERVES A LOT OF CREDIT FOR 2992 02:12:43,001 --> 02:12:45,000 PUSHING THIS FINANCIAL REFORM, 2993 02:12:45,001 --> 02:12:49,000 KNOWING THAT WE NEEDED TO DO IT. 2994 02:12:49,001 --> 02:12:51,000 I DON'T THINK IT FULLY MEETS THE 2995 02:12:51,001 --> 02:12:53,000 TEST OF DOING WHAT WE SHOULD BE 2996 02:12:53,001 --> 02:12:55,000 DOING, BUT I DO THINK THAT IT IS 2997 02:12:55,001 --> 02:12:56,000 A FIRST STEP, AND I THINK THE 2998 02:12:56,001 --> 02:12:57,000 CHAIRMAN IS TO BE COMMENDED FOR 2999 02:12:57,001 --> 02:12:58,000 HIS LEADERSHIP. 3000 02:12:58,001 --> 02:12:59,000 I THANK YOU, MADAM PRESIDENT, 3001 02:12:59,001 --> 02:13:01,000 AND I YIELD THE FLOOR AND I ASK 3002 02:13:01,001 --> 02:13:02,000 THAT MY FULL STATEMENT BE 3003 02:13:02,001 --> 02:13:03,000 SUBMITTED FOR THE PRESIDING OFFICER: WITHOUT 3004 02:13:03,001 --> 02:13:04,000 OBJECTION. 3005 02:13:04,001 --> 02:13:05,000 MR. DODD: AND, MADAM 3006 02:13:05,001 --> 02:13:06,000 PRESIDENT, LET ME AGAIN -- 3007 02:13:06,001 --> 02:13:07,000 THE PRESIDING OFFICER: THE SNOER FROM CONNECTICUT. 3008 02:13:07,001 --> 02:13:09,000 MR. DODD: MY FRIEND AND 3009 02:13:09,001 --> 02:13:10,000 COLLEAGUE FROM TEXAS SERVES ON 3010 02:13:10,001 --> 02:13:12,000 THE BANKING COMMITTEE AS WELL 3011 02:13:12,001 --> 02:13:15,000 AND HAS BEEN A GOOD MEMBER, AND 3012 02:13:15,001 --> 02:13:17,000 AGAIN I THANK HER AND SENATOR KLOBUCHAR. 3013 02:13:17,001 --> 02:13:18,000 THERE WERE A SERIES OF 3014 02:13:18,001 --> 02:13:19,000 AMENDMENTS THAT SENATOR 3015 02:13:19,001 --> 02:13:23,000 HUTCHISON WAS INVOLVED IN, AND 3016 02:13:23,001 --> 02:13:24,000 AS I SAID A MOMENT AGO, ADDED 3017 02:13:24,001 --> 02:13:26,000 VALUE TO THIS BIVMENT SO I THANK 3018 02:13:26,001 --> 02:13:28,000 HER FOR IT. 3019 02:13:28,001 --> 02:13:30,000 I MENONED YESTERDAY WHILE A 3020 02:13:30,001 --> 02:13:31,000 RELATIVELY JUNIOR MEMBER OF THE 3021 02:13:31,001 --> 02:13:33,000 BANKING COMMITTEE, THERE WAS NO 3022 02:13:33,001 --> 02:13:34,000 MEMBER OF THIS CHAMBER, MADAM 3023 02:13:34,001 --> 02:13:37,000 PRESIDENT, THAT ADDED AS MUCH TO 3024 02:13:37,001 --> 02:13:39,000 THIS BILL AS THE SENATOR FROM 3025 02:13:39,001 --> 02:13:40,000 VIRGINIA DID. 3026 02:13:40,001 --> 02:13:44,000 AND I CAN'T -- THERE ARE NOT 3027 02:13:44,001 --> 02:13:46,000 WORDS OR TIME FOR ME TO 3028 02:13:46,001 --> 02:13:48,000 ADEQUATELY EXPRESS MY GRATITUDE 3029 02:13:48,001 --> 02:13:50,000 TO HIM FOR HIS INVOLVEMENT, 3030 02:13:50,001 --> 02:13:52,000 LITERALLY ON ALMOST AN HOURLY 3031 02:13:52,001 --> 02:13:53,000 BASIS WAS INVOLVED, ALONG WITH 3032 02:13:53,001 --> 02:13:54,000 SENATOR CORKER OF TENTON. 3033 02:13:54,001 --> 02:13:55,000 THEY LITERALLY SPENT HOURS ON 3034 02:13:55,001 --> 02:13:57,000 THEIR OWN MEETING AND TALNG 3035 02:13:57,001 --> 02:13:59,000 WITH OTHER PEOPLE ABOUT HOW TO 3036 02:13:59,001 --> 02:14:02,000 FASHION TWO OF THE MOST CRITICAL 3037 02:14:02,001 --> 02:14:03,000 TITLES OF THIS BILL. 3038 02:14:03,001 --> 02:14:06,000 AND SO LET ME JUST EXPRESS MY 3039 02:14:06,001 --> 02:14:07,000 GRATITUDE ONCE AGAIN TO SENATOR 3040 02:14:07,001 --> 02:14:08,000 MARK WARNER OF VIRGINIA AND 3041 02:14:08,001 --> 02:14:09,000 THANK HIM IMMENSELY FOR HIS 3042 02:14:09,001 --> 02:14:10,000 CONTRIBUTION. 3043 02:14:10,001 --> 02:14:11,000 DID YOU A GREAT JOB. 3044 02:14:11,001 --> 02:14:12,000 MR. WARNER: MADAM PRESIDENT? THE PRESIDING OFFICER: THE 3045 02:14:12,001 --> 02:14:13,000 SENATOR SPR VIRGINIA. 3046 02:14:13,001 --> 02:14:15,000 MR. WARNER: I WANT TO THANK 3047 02:14:15,001 --> 02:14:17,000 THE CHAIR FOR THOSE KIND REMARKS 3048 02:14:17,001 --> 02:14:19,000 AND YOU SAID THERE'S NOT TIME OR 3049 02:14:19,001 --> 02:14:20,000 WORDS, BUT IF YOU'D LIKE TO TAKE 3050 02:14:20,001 --> 02:14:23,000 SOME MORE TIME OR WORDS TO 3051 02:14:23,001 --> 02:14:28,000 THANK, I WOULD BE HAPPY TO -- 3052 02:14:28,001 --> 02:14:30,000 LET ME AGAIN THANK THE CHAIR AND 3053 02:14:30,001 --> 02:14:32,000 SAY IT'S A GOOD FEELING THAT ALL 3054 02:14:32,001 --> 02:14:38,000 OF US HAVE LABORED ON THIS. 3055 02:14:38,001 --> 02:14:39,000 THE MEMBERS, THE STAFF THAT IS 3056 02:14:39,001 --> 02:14:42,000 THAT IT'S COMING TO A SUCCESSFUL 3057 02:14:42,001 --> 02:14:45,000 CONCLUSION. 3058 02:14:45,001 --> 02:14:46,000 AND THAT THE DODD-FRANK WALL 3059 02:14:46,001 --> 02:14:48,000 STREET REFORM, THE CONSUMER 3060 02:14:48,001 --> 02:14:52,000 PROTECTION ACT IS GOING TO LAW. 3061 02:14:52,001 --> 02:14:53,000 AND I THINK IT WILL STAND, AS 3062 02:14:53,001 --> 02:14:56,000 THOSE EQUALLY CONTROVERSIAL 3063 02:14:56,001 --> 02:14:57,000 PIECES OF LEGISLATION IN THE 3064 02:14:57,001 --> 02:15:00,000 1930'S, IT STOOD THE TEST OF 3065 02:15:00,001 --> 02:15:02,000 TIME FOR DECADES, I THINK THIS 3066 02:15:02,001 --> 02:15:06,000 BILL WILL STAND THE TEST OF TIME 3067 02:15:06,001 --> 02:15:07,000 FOR DECADES AS WELL IN TERMS OF 3068 02:15:07,001 --> 02:15:10,000 CREATING A NEW SET OF RULES OF 3069 02:15:10,001 --> 02:15:12,000 THE ROAD FOR NOT JUST AMERICA'S 3070 02:15:12,001 --> 02:15:14,000 FINANCIAL SECTOR, BUT IN A SENSE 3071 02:15:14,001 --> 02:15:17,000 THE WORLD'S FINANCIAL SECTOR FOR 3072 02:15:17,001 --> 02:15:20,000 DECADES TO COME. 3073 02:15:20,001 --> 02:15:21,000 AND WHILE NOT PERFECT -- AND NO 3074 02:15:21,001 --> 02:15:24,000 PIECE OF LEGISLATION IS -- ONE 3075 02:15:24,001 --> 02:15:26,000 OF THE THINGS THAT GIVES ME SOME CONFIDENCE THAT THE RIGHT 3076 02:15:26,001 --> 02:15:28,000 BALANCE HAS BEEN STRUCK IS THAT 3077 02:15:28,001 --> 02:15:31,000 THIS BILL HAS BEEN CRITICIZED BY 3078 02:15:31,001 --> 02:15:33,000 BOTH THE LEFT AND THE RIGHT. 3079 02:15:33,001 --> 02:15:35,000 SOME ON THE LEFT, SOME ON THE 3080 02:15:35,001 --> 02:15:39,000 DEMOCRATIC SIDE SAY THE BILL HAS 3081 02:15:39,001 --> 02:15:40,000 NOT GONE FAR ENOUGH IN PUTTING 3082 02:15:40,001 --> 02:15:42,000 MORE REQUIREMENTS AND 3083 02:15:42,001 --> 02:15:44,000 RESTRICTIONS ON OUR FINANCIAL INSTITUTIONS. 3084 02:15:44,001 --> 02:15:45,000 SOME OF MY COLLEAGUES ON THE 3085 02:15:45,001 --> 02:15:46,000 REPUBLICAN SIDE, ON THE RIGHT, 3086 02:15:46,001 --> 02:15:47,000 HAVE SAID THIS BILL GOES TOO 3087 02:15:47,001 --> 02:15:48,000 FAR. 3088 02:15:48,001 --> 02:15:50,000 THE FACT THAT IT IS GETTING 3089 02:15:50,001 --> 02:15:53,000 PERHAPS THAT LEFT AND RIGHT 3090 02:15:53,001 --> 02:15:55,000 CRITICISM PUTS US MAYBE IN THAT 3091 02:15:55,001 --> 02:15:56,000 JUST RIGHT IN THE MIDDLE 3092 02:15:56,001 --> 02:15:57,000 SECTION, WHICH WAS THE 3093 02:15:57,001 --> 02:15:59,000 APPROPRIATE BALANCE WE'VE TRIED 3094 02:15:59,001 --> 02:16:01,000 TO STRIKE SINCE THE CHAIRMAN 3095 02:16:01,001 --> 02:16:02,000 STARTED THIS EFFORT WELL OVER 3096 02:16:02,001 --> 02:16:05,000 TWO YEARS AGO. 3097 02:16:05,001 --> 02:16:07,000 I THINK IT'S IMPORTANT AT TIMES 3098 02:16:07,001 --> 02:16:08,000 THAT WE REMEMBER WHY WE'RE HERE 3099 02:16:08,001 --> 02:16:10,000 TODAY. 3100 02:16:10,001 --> 02:16:11,000 TWO YEARS AGO THE MARKETS WERE 3101 02:16:11,001 --> 02:16:12,000 IN CHAOS. 3102 02:16:12,001 --> 02:16:17,000 PRESIDENT BUSH AND SECRETARY 3103 02:16:17,001 --> 02:16:19,000 PAULSON HAD CREATED TARP, $700 3104 02:16:19,001 --> 02:16:21,000 BILLION UNPRECEDENTED BAILOUT TO 3105 02:16:21,001 --> 02:16:22,000 SHORE UP OUR FINANCIAL SYSTEM. 3106 02:16:22,001 --> 02:16:24,000 PRESIDENT OBAMA WAS IN CRISI 3107 02:16:24,001 --> 02:16:26,000 MODE WITH OUR ECONOMY STILL IN 3108 02:16:26,001 --> 02:16:29,000 FREE FALL FROM DAY ONE. 3109 02:16:29,001 --> 02:16:32,000 THE DOW WAS AT 6500, AND THERE 3110 02:16:32,001 --> 02:16:35,000 WAS A LOT OF TALK OF 3111 02:16:35,001 --> 02:16:37,000 NATIONALIZING BANKS. 3112 02:16:37,001 --> 02:16:39,000 WELL, CLOSE TO A YEAR AND A HALF 3113 02:16:39,001 --> 02:16:41,000 TO TWO YEARS LATER, WE HAVE SEEN 3114 02:16:41,001 --> 02:16:43,000 STIMULUS AND STRESS TESTS. 3115 02:16:43,001 --> 02:16:45,000 WE'VE SEEN A DOW THAT NOW HAS 3116 02:16:45,001 --> 02:16:46,000 TOUCHED 11000. 3117 02:16:46,001 --> 02:16:48,000 AND WHILE THE ECONOMY IS NOT 3118 02:16:48,001 --> 02:16:51,000 CREATING JOBS AT THE RATE ANY OF 3119 02:16:51,001 --> 02:16:54,000 US WOULD LIKE TO SEE, THE TALK 3120 02:16:54,001 --> 02:16:56,000 OF FINANCIAL ARMAGEDDON OR 3121 02:16:56,001 --> 02:16:58,000 COMPLETE COLLAPSE HAS DISAPPEARED. 3122 02:16:58,001 --> 02:17:01,000 I THINK WE WENT INTO THIS 3123 02:17:01,001 --> 02:17:02,000 PROCESS WITH THREE GOALS. 3124 02:17:02,001 --> 02:17:05,000 FIRST, THE TAXPAYERS MUST NEVER 3125 02:17:05,001 --> 02:17:06,000 AGAIN HEAR THAT A COMPANY IS TOO 3126 02:17:06,001 --> 02:17:09,000 BIG TO FAIL. 3127 02:17:09,001 --> 02:17:11,000 SECOND, THAT WE HAD TO FIX OUR 3128 02:17:11,001 --> 02:17:13,000 REGULATORY SYSTEM TO MAKE SURE 3129 02:17:13,001 --> 02:17:16,000 THAT THE HUGE GAPS THAT EXISTED, 3130 02:17:16,001 --> 02:17:20,000 THAT ALLOWED SYSTEMIC REGULATORY 3131 02:17:20,001 --> 02:17:22,000 ARBITRAGE COULD NO LONGER TAKE PLACE. 3132 02:17:22,001 --> 02:17:25,000 AND FINALLY, CONSUMERS AND 3133 02:17:25,001 --> 02:17:27,000 INVESTORS HAD TO HAVE CONFIDENCE 3134 02:17:27,001 --> 02:17:30,000 THAT OUR MARKETS WERE FAIR, TRANSPARENT, AND THAT THERE 3135 02:17:30,001 --> 02:17:32,000 WOULD BE A COP ON THE BEAT TO 3136 02:17:32,001 --> 02:17:34,000 MAKE SURE THAT SOME OF THE 3137 02:17:34,001 --> 02:17:36,000 EXCESSES THAT TOOK PLACE IN 3138 02:17:36,001 --> 02:17:38,000 2005, 2006, 2007 WHERE FOLKS 3139 02:17:38,001 --> 02:17:42,000 WERE BEING PUT INTO HOMES THEY 3140 02:17:42,001 --> 02:17:43,000 COULD NEVER AFFORD TO PAY FOR OR 3141 02:17:43,001 --> 02:17:44,000 FINANCIAL INSTRUMENTS THAT WERE 3142 02:17:44,001 --> 02:17:48,000 BEIN CREATED UNDER THE GUISE OF 3143 02:17:48,001 --> 02:17:53,000 LOWERING THE COST OF RISK THAT 3144 02:17:53,001 --> 02:17:58,000 WERE MORE CREATED FOR FEES WOULD 3145 02:17:58,001 --> 02:18:00,000 NO LONGE COME AGAIN ON WEARY 3146 02:18:00,001 --> 02:18:02,000 INVESTORS, OR HOMEOWNERS THAT 3147 02:18:02,001 --> 02:18:04,000 GOT THEMSELVES INTO THE PROBLEM. 3148 02:18:04,001 --> 02:18:09,000 I THINK ONE OF THE MOST 3149 02:18:09,001 --> 02:18:10,000 INTERESTING CRITIQUES SOME HAVE 3150 02:18:10,001 --> 02:18:11,000 IS WE HAVE NOT ADDRESSED TOO BIG 3151 02:18:11,001 --> 02:18:14,000 TO FAIL. 3152 02:18:14,001 --> 02:18:15,000 CANDIDLY WITH THE UNITED STATES 3153 02:18:15,001 --> 02:18:16,000 MOVING ON THE REST OF THIS 3154 02:18:16,001 --> 02:18:19,000 LEGISLATION AND THE REST OF THE 3155 02:18:19,001 --> 02:18:20,000 WORLD WAITING, WE HEAR FROM OUR 3156 02:18:20,001 --> 02:18:22,000 EUROPEAN COLLEUES THAT THE 3157 02:18:22,001 --> 02:18:23,000 FRAMEWORK WE SET UP, ACTUALLY 3158 02:18:23,001 --> 02:18:24,000 THEY HOPE TO EMULATE. 3159 02:18:24,001 --> 02:18:26,000 WE CREATED A NEW REGULATORY 3160 02:18:26,001 --> 02:18:30,000 STRUCTURE SO THAT THE REGULATORS 3161 02:18:30,001 --> 02:18:31,000 COULD GET OUT OF THEIR SILOS, 3162 02:18:31,001 --> 02:18:33,000 DEPOSITORY INSTITUTIONS ON ONE 3163 02:18:33,001 --> 02:18:34,000 SIDE, SECURITY INSTITUTIONS ON 3164 02:18:34,001 --> 02:18:37,000 ANOTHER, DERIVATIVES TRADING ON 3165 02:18:37,001 --> 02:18:39,000 A THIRD, AND MAKE SURE THAT WE 3166 02:18:39,001 --> 02:18:41,000 HAD A FULL SYSTEMIC RISK 3167 02:18:41,001 --> 02:18:43,000 COUNCIL, THAT WE MEASURED BE 3168 02:18:43,001 --> 02:18:46,000 RISK WHEREVER IT EXISTED 3169 02:18:46,001 --> 02:18:48,000 REGARDLESS OF THE CHAER OF THE ORGANIZATION. 3170 02:18:48,001 --> 02:18:50,000 WHILE SOME SAID WE OUGHT TO GO 3171 02:18:50,001 --> 02:18:52,000 AHEAD AND LIMIT THE ASSET SIZE 3172 02:18:52,001 --> 02:18:56,000 OF SIMILAR INSTITUTIONS JUST ON 3173 02:18:56,001 --> 02:18:59,000 SIZE ALONE, I THINK THE CHAIRMAN 3174 02:18:59,001 --> 02:19:00,000 WISELY DECIDED THAT AS WE WENT 3175 02:19:00,001 --> 02:19:01,000 THROUGH A YEAR AND A HALF OF 3176 02:19:01,001 --> 02:19:02,000 HEARINGS, WHAT OFTEN 3177 02:19:02,001 --> 02:19:04,000 PRECIPITATED THE GREATEST RISKS 3178 02:19:04,001 --> 02:19:06,000 TO OUR SYSTEM WAS NOT SIZE 3179 02:19:06,001 --> 02:19:09,000 ALONE -- AMERICA HAS ONLY GOT 4 3180 02:19:09,001 --> 02:19:11,000 OF THE 50 LARGEST BANKS IN THE 3181 02:19:11,001 --> 02:19:12,000 WORLD -- BUT IT WAS THE 3182 02:19:12,001 --> 02:19:13,000 INTERCONNECTEDNESS, THEIR 3183 02:19:13,001 --> 02:19:15,000 LEVERAGE, THE FAILURE TO HAVE 3184 02:19:15,001 --> 02:19:16,000 APPROPRIATE RISK MANAGEMENT 3185 02:19:16,001 --> 02:19:19,000 PLANS IN PLACE. 3186 02:19:19,001 --> 02:19:20,000 THIS NEW SYSTEMIC RISK COUNCIL 3187 02:19:20,001 --> 02:19:22,000 IS SPECIFICALLY CHARGED WITH 3188 02:19:22,001 --> 02:19:25,000 MAKING SURE OUR LARGE, MORE 3189 02:19:25,001 --> 02:19:26,000 COMPLEX INSTITUTIONS HAVE MORE 3190 02:19:26,001 --> 02:19:29,000 STRINGENT CAPITAL REQUIREMENTS, 3191 02:19:29,001 --> 02:19:30,000 LEVERAGE RATIOS, LIQUIDITY 3192 02:19:30,001 --> 02:19:33,000 REQUIREMENTS, AND RISK 3193 02:19:33,001 --> 02:19:36,000 MANAGEMENT TOOLS. 3194 02:19:36,001 --> 02:19:38,000 WE'D EVEN CREATED TWO WHOLE NEW 3195 02:19:38,001 --> 02:19:40,000 CATEGORIES THAT WHILE NOT FULLY 3196 02:19:40,001 --> 02:19:41,000 TESTED, BOTH OF THESE CATEGORIES 3197 02:19:41,001 --> 02:19:43,000 ACTUALLY CAME FROM COLLEAGUES ON 3198 02:19:43,001 --> 02:19:45,000 THE OTHER SIDE OF THE AISLE, 3199 02:19:45,001 --> 02:19:47,000 COULD BE IMPORTANT NEW STEPS TO 3200 02:19:47,001 --> 02:19:48,000 PRESENT -- PREVENT THESE LARGE 3201 02:19:48,001 --> 02:19:52,000 INSTITUTIONS FROM FAILING. 3202 02:19:52,001 --> 02:19:54,000 ONE IS CONONTINGENT DEPTH THAT 3203 02:19:54,001 --> 02:19:55,000 LARGE INSTITUTIONS WOULD HAVE TO 3204 02:19:55,001 --> 02:19:57,000 HAVE THAT IF THEY GET THEMSELVES 3205 02:19:57,001 --> 02:19:59,000 EVEN CLOSE TO TROUBLE, THAT DEBT 3206 02:19:59,001 --> 02:20:01,000 WOULD CONVERT INTO EQUITY, 3207 02:20:01,001 --> 02:20:02,000 CONSEQUENTLY DILUTING EXISTING 3208 02:20:02,001 --> 02:20:03,000 SHAREHOLDERS AND MANAGEMENT AND 3209 02:20:03,001 --> 02:20:05,000 KEEPING PRESSURE ON THE PWAOD TO 3210 02:20:05,001 --> 02:20:07,000 MAKE SURE THAT -- ON THE BOARD 3211 02:20:07,001 --> 02:20:08,000 TO MAKE SURE THAT MANAGEMENT 3212 02:20:08,001 --> 02:20:11,000 WOULDN'T TAKE THAT RISK. 3213 02:20:11,001 --> 02:20:14,000 FINALLY, A TOOL THAT, AGAIN, I 3214 02:20:14,001 --> 02:20:16,000 THINK IF IMPLEMENTED CORRECTLY, 3215 02:20:16,001 --> 02:20:17,000 WILL BE TREMENDOUSLY POWERFUL. 3216 02:20:17,001 --> 02:20:20,000 AND THAT IS TO ENSURE THAT ALL 3217 02:20:20,001 --> 02:20:21,000 OF THESE LARGE, COMPLEX 3218 02:20:21,001 --> 02:20:23,000 INSTITUTIONS PROVIDE A PLAN 3219 02:20:23,001 --> 02:20:25,000 ABOUT HOW THEY WILL BE ABLE TO 3220 02:20:25,001 --> 02:20:30,000 UNWIND IN AN ORDERLY FASHION 3221 02:20:30,001 --> 02:20:32,000 THROUGH TRADITIONAL BANKRUPTCY 3222 02:20:32,001 --> 02:20:34,000 PROVISIONS, AND OUR GOAL IS TO 3223 02:20:34,001 --> 02:20:36,000 ALWAYS HAVE BANKRUPTCY BE THE 3224 02:20:36,001 --> 02:20:38,000 APPROPRIATE RESPONSE, AND IF 3225 02:20:38,001 --> 02:20:40,000 THAT LIQUIDATION PLAN OR IF THAT 3226 02:20:40,001 --> 02:20:41,000 DEBT PLAN IS NOT BLESSED BY THE 3227 02:20:41,001 --> 02:20:43,000 COUNCIL OF REGULATORS, THE 3228 02:20:43,001 --> 02:20:45,000 COUNCIL OF REGULATORS CAN 3229 02:20:45,001 --> 02:20:49,000 DISMEMBER, BREAK UP OR P OTHER 3230 02:20:49,001 --> 02:20:52,000 RESTRICTIONS ON THESE LARGE INSTITUTIONS. 3231 02:20:52,001 --> 02:20:54,000 SENATOR DODD MADE, I THINK, THE 3232 02:20:54,001 --> 02:20:56,000 DECISION TO TASK MY GOOD FRIEND, 3233 02:20:56,001 --> 02:20:59,000 SENATOR CORKER FROM TENNESSEE, 3234 02:20:59,001 --> 02:21:00,000 AND I WITH THIS ISSUE IF THOSE 3235 02:21:00,001 --> 02:21:03,000 PROCESSES STILL DON'T WORK, HOW 3236 02:21:03,001 --> 02:21:05,000 DO YOU MAKE SURE YOU'VE GOT A LIQUIDATION PROCESS. 3237 02:21:05,001 --> 02:21:07,000 AND OUR GOAL WAS TWO. 3238 02:21:07,001 --> 02:21:10,000 ONE, TAXPAYERS SHOULD NEVER BE 3239 02:21:10,001 --> 02:21:12,000 ABLE TO HAVE TO BEAR THE RISK. 3240 02:21:12,001 --> 02:21:14,000 AND, TWO, THAT IF AN ENTITY GOES 3241 02:21:14,001 --> 02:21:16,000 INTO LIQUIDATION, IT WILL NOT 3242 02:21:16,001 --> 02:21:19,000 COME OUT. 3243 02:21:19,001 --> 02:21:23,000 LIQUIDATION OR RESOLUTION IS NOT 3244 02:21:23,001 --> 02:21:26,000 AN ATTEMPT TO STAND UP AN INSTITUTION. 3245 02:21:26,001 --> 02:21:27,000 BUT WE WANTED TO MAKE CLEAR TO 3246 02:21:27,001 --> 02:21:30,000 SHAREHOLDERS, TO MANAGEMENT, IF 3247 02:21:30,001 --> 02:21:32,000 YOU GO INTO RESOLUTION, YOU'RE 3248 02:21:32,001 --> 02:21:33,000 TOAST, AS MY COLLEAGUE, SENATOR 3249 02:21:33,001 --> 02:21:35,000 CORKER, OFTEN SAID. 3250 02:21:35,001 --> 02:21:37,000 WE THINK WE HAVE REACHED THAT 3251 02:21:37,001 --> 02:21:40,000 GOAL, AND I'M PROUD, 3252 02:21:40,001 --> 02:21:42,000 PARTICULARLY TITLES 1 AND 2 OF 3253 02:21:42,001 --> 02:21:44,000 THIS BILL. 3254 02:21:44,001 --> 02:21:45,000 ACTUALLY WHEN CHAIRMAN DODD AND 3255 02:21:45,001 --> 02:21:47,000 SENATOR SHELBY PUT SOME 3256 02:21:47,001 --> 02:21:50,000 AMENDMENTS TO IT, WERE ENDORSED 3257 02:21:50,001 --> 02:21:51,000 BY 95 OF OUR COLLEAGUES, THE 3258 02:21:51,001 --> 02:21:52,000 BROADEST BIPARTISAN SECTION OF 3259 02:21:52,001 --> 02:21:54,000 THIS LEGISLATION. 3260 02:21:54,001 --> 02:21:55,000 THIS BILL ADDRESSES A NUMBER OF 3261 02:21:55,001 --> 02:21:58,000 OTHE VITAL AREAS AS WELL. 3262 02:21:58,001 --> 02:22:00,000 IT ALLOWS A SINGLE DEPOSITORY 3263 02:22:00,001 --> 02:22:01,000 PLACE TO GET THE APPROPRIATE 3264 02:22:01,001 --> 02:22:03,000 DAY-TO-DAY INFORMATION ON OUR 3265 02:22:03,001 --> 02:22:05,000 FINANCIAL INSTITUTIONS, BUT 3266 02:22:05,001 --> 02:22:07,000 STILL DIDN'T EXIST UNTIL WE 3267 02:22:07,001 --> 02:22:08,000 CREATED THE FINANCI SERVICES 3268 02:22:08,001 --> 02:22:09,000 OVERSIGHT COUNCIL. 3269 02:22:09,001 --> 02:22:11,000 AND THE ABILITY TO GET ON A 3270 02:22:11,001 --> 02:22:13,000 DAILY BASIS THE LEVEL OF 3271 02:22:13,001 --> 02:22:15,000 INTERCONNECTEDNESS OF A FUTURE A.I.G. 3272 02:22:15,001 --> 02:22:16,000 IT PUTS IN PLACE A CONSUMER 3273 02:22:16,001 --> 02:22:19,000 PROTECTION BUREAU TO MAKE SURE, 3274 02:22:19,001 --> 02:22:20,000 FOR EXAMPLE, THAT MORTGAGES ARE 3275 02:22:20,001 --> 02:22:22,000 REGULATED IN A WAY THAT 3276 02:22:22,001 --> 02:22:24,000 CONSUMERS CAN UNDERSTAND 3277 02:22:24,001 --> 02:22:26,000 REGARDLESS OF THE CHARTER OF THE ORGANIZATION. 3278 02:22:26,001 --> 02:22:29,000 WE OFTEN FOUND BANKS HAD A 3279 02:22:29,001 --> 02:22:30,000 FAIRLY GOOD ABILITY TO REGULATE 3280 02:22:30,001 --> 02:22:32,000 SOME OF THEIR MORTGES WHEREAS 3281 02:22:32,001 --> 02:22:34,000 MORTGAGE LENDERS AND OTHERS WHO 3282 02:22:34,001 --> 02:22:35,000 WERE UNREGULATED HAD NO SUCH 3283 02:22:35,001 --> 02:22:36,000 RESTRICTIONS. 3284 02:22:36,001 --> 02:22:38,000 NOW WE'VE GOT AN EVEN PLAYING FIELD. 3285 02:22:38,001 --> 02:22:39,000 IT FINALLY PUTS SOME PLACE -- 3286 02:22:39,001 --> 02:22:41,000 THERE IS STILL SOME DEBATE ON 3287 02:22:41,001 --> 02:22:42,000 THIS ISSUE -- AN APPROPRIATE 3288 02:22:42,001 --> 02:22:45,000 PROCESS TO REGULATE DERIVATIVES 3289 02:22:45,001 --> 02:22:46,000 AND BRING THESE CRITICAL BUT 3290 02:22:46,001 --> 02:22:50,000 POTENTIALLY DANGEROUS 3291 02:22:50,001 --> 02:22:52,000 INSTRUMENTS OUT OF THE SHADOWS, 3292 02:22:52,001 --> 02:22:53,000 AND THE VAST MAJORITY OF THESE 3293 02:22:53,001 --> 02:22:56,000 INSTRUMENTS NOW WILL BE TRADED 3294 02:22:56,001 --> 02:22:59,000 IN A MORE TRANSPARENT WAY ON EXCHANGES. 3295 02:22:59,001 --> 02:23:02,000 THERE'S MORE TO BE DONE. 3296 02:23:02,001 --> 02:23:03,000 DOMESTIC AND INTERNATIONAL 3297 02:23:03,001 --> 02:23:04,000 IMPLEMENTATION IS VITALLY 3298 02:23:04,001 --> 02:23:05,000 IMPORTANT. 3299 02:23:05,001 --> 02:23:07,000 AS I MENTIONED AT THE OUTSET, 3300 02:23:07,001 --> 02:23:08,000 THE UNITED STATES -- AND THIS IS 3301 02:23:08,001 --> 02:23:10,000 ONE OF THE THINGS THAT IS KIND 3302 02:23:10,001 --> 02:23:12,000 OF REMARKABLE WHEN I HEAR FROM 3303 02:23:12,001 --> 02:23:14,000 SOME OF MY COLLEAGUES THAT WE 3304 02:23:14,001 --> 02:23:16,000 TPHAOUF TOO QUICKLY OR THIS -- 3305 02:23:16,001 --> 02:23:18,000 WE MOVE TOO QUICKLY OR THIS BILL 3306 02:23:18,001 --> 02:23:19,000 DOES TOO MUCH -- THE REST OF THE 3307 02:23:19,001 --> 02:23:20,000 WORLD HAS BEEN WAITING ON 3308 02:23:20,001 --> 02:23:22,000 AMERICA TO ACT TO SET THE 3309 02:23:22,001 --> 02:23:23,000 TEMPLATE FOR BROAD-BASED 3310 02:23:23,001 --> 02:23:25,000 FINANCIAL REFORM. 3311 02:23:25,001 --> 02:23:28,000 NOW THAT WE HAVE ACTED, I THINK 3312 02:23:28,001 --> 02:23:29,000 PARTICULARLY EUROPE AND ASIA 3313 02:23:29,001 --> 02:23:33,000 WILL FOLLOW OUR STEPS. 3314 02:23:33,001 --> 02:23:34,000 BUT MAKING SURE WE DO THIS IN AN 3315 02:23:34,001 --> 02:23:35,000 APPROPRIATE INTERNATIONAL 3316 02:23:35,001 --> 02:23:36,000 IMPLEMENTATION IS TERRIBLY 3317 02:23:36,001 --> 02:23:38,000 IMPORTANT, BUT ALSO MAKING SURE 3318 02:23:38,001 --> 02:23:39,000 WE'VE GOT THE REGULATORY 3319 02:23:39,001 --> 02:23:42,000 APPROACH ACROSS THE WORLD 3320 02:23:42,001 --> 02:23:43,000 CORRECT SO THERE IS NOT 3321 02:23:43,001 --> 02:23:45,000 INTERNATIONAL BELIEF TO 3322 02:23:45,001 --> 02:23:46,000 ARBITRAGE WITH THESE LARGE 3323 02:23:46,001 --> 02:23:48,000 INSTITUTIONS. I KNOW SOME OF MY COLLEAGUES ON 3324 02:23:48,001 --> 02:23:50,000 THE OTHER SIDE OF THE AISLE HAVE 3325 02:23:50,001 --> 02:23:52,000 ALSO RAISED THE QUESTION THAT 3326 02:23:52,001 --> 02:23:54,000 THIS BILL DIDN'T FULLY ADDRESS 3327 02:23:54,001 --> 02:23:55,000 THE QUESTION OF THE G.S.E.'S. 3328 02:23:55,001 --> 02:23:56,000 THEY'RE RIGHT. 3329 02:23:56,001 --> 02:23:58,000 I THINK IT WAS THE RIGHT AND 3330 02:23:58,001 --> 02:24:01,000 CONSCIOUS DECISION OF THE CHAIR 3331 02:24:01,001 --> 02:24:02,000 AND OTHERS THAT TO DISRUPT AN 3332 02:24:02,001 --> 02:24:04,000 ALREADY STILL FRAGILE HOUSING 3333 02:24:04,001 --> 02:24:05,000 MARKET AT THIS MOMENT IN TIME IN 3334 02:24:05,001 --> 02:24:07,000 A PIECE OF LEGISLATION THAT HAS 3335 02:24:07,001 --> 02:24:11,000 ALREADY BEEN ACCUSED BY SOME AS 3336 02:24:11,001 --> 02:24:13,000 BEING TOO BROAD AND COVERING TOO 3337 02:24:13,001 --> 02:24:15,000 MANY ITEMS WAS NOT THE APPROPRIATE CHOICE. 3338 02:24:15,001 --> 02:24:16,000 WE WL HAVE TO COME BACK AND 3339 02:24:16,001 --> 02:24:18,000 DEAL WITH G.S.E.'S. 3340 02:24:18,001 --> 02:24:21,000 WE'VE GOT TO MAKE SURE THAT AS 3341 02:24:21,001 --> 02:24:22,000 WE DEAL WITH G.S.E.'S, 3342 02:24:22,001 --> 02:24:24,000 INTERNATIONAL IMPLEMENTATION, 3343 02:24:24,001 --> 02:24:26,000 THAT WE STAY VIGILANT. 3344 02:24:26,001 --> 02:24:29,000 HAVE GIVEN THE REGULATORS THE TOOLS. 3345 02:24:29,001 --> 02:24:31,000 HOW THEY USE THESE TOOLS WILL BE 3346 02:24:31,001 --> 02:24:32,000 UP TO US IN CONGRESS TO MAKE 3347 02:24:32,001 --> 02:24:33,000 SURE THEY'RE IMPLEMENTED 3348 02:24:33,001 --> 02:24:35,000 CORRECTLY WITH APPROPRIATE 3349 02:24:35,001 --> 02:24:37,000 OVERSIGHT. 3350 02:24:37,001 --> 02:24:39,000 NOW, I AM CERTAINLY DISAPPOINTED 3351 02:24:39,001 --> 02:24:40,000 THIS BILL DIDN'T PASS WITH 3352 02:24:40,001 --> 02:24:42,000 BROADER BIPARTISAN LEGISLATION, 3353 02:24:42,001 --> 02:24:45,000 BUT I WILL -- WE ONLY GOT HERE 3354 02:24:45,001 --> 02:24:49,000 BECAUSE THERE WAS BIPARTISAN SUPPORT. 3355 02:24:49,001 --> 02:24:51,000 AND I WANT TO CLOSE WITH 3356 02:24:51,001 --> 02:24:53,000 ACKNOWLEDGING, AGAIN, THE 3357 02:24:53,001 --> 02:24:55,000 CHAIRMAN WAS VERY KIND IN HIS 3358 02:24:55,001 --> 02:24:57,000 REMARKS, BUT I CAN'T THINK IN MY 3359 02:24:57,001 --> 02:24:59,000 SHORT TENURE HERE IN THE UNITED 3360 02:24:59,001 --> 02:25:00,000 STATES SENATE OF ANY SENATOR 3361 02:25:00,001 --> 02:25:03,000 THAT'S WORKED HARDER ON A PIECE 3362 02:25:03,001 --> 02:25:04,000 OF LEGISLATION, THAT'S BEEN MORE 3363 02:25:04,001 --> 02:25:07,000 RELENTLESS, THAT'S HAD MORE 3364 02:25:07,001 --> 02:25:10,000 TWISTS AND TURNS, THAT'S HAD 3365 02:25:10,001 --> 02:25:13,000 MORE, "WE'RE THERE, OH MY GOSH, 3366 02:25:13,001 --> 02:25:15,000 BUT WE MAY NOT BE THERE," THAT'S 3367 02:25:15,001 --> 02:25:17,000 PROBABLY HAD MORE 10:00, 2:00 IN 3368 02:25:17,001 --> 02:25:20,000 THE MORNING, 4:00 IN THE MORNING 3369 02:25:20,001 --> 02:25:21,000 I BELIEVE AT ONE POINT, 3370 02:25:21,001 --> 02:25:22,000 TELEPHONE CALLS, MEETING WITH 3371 02:25:22,001 --> 02:25:24,000 OTHER MEMBERS, AS THE SENATOR 3372 02:25:24,001 --> 02:25:25,000 FROM TEXAS MENTIONED EARLIER, 3373 02:25:25,001 --> 02:25:26,000 EVEN THOUGH THE SENATOR FROM 3374 02:25:26,001 --> 02:25:28,000 TEXAS COULDN'T SUPPORT THE 3375 02:25:28,001 --> 02:25:29,000 OVERALL BILL, OUR CHAIRMAN HAS 3376 02:25:29,001 --> 02:25:31,000 WORKED WITH ALL MEMBERS 3377 02:25:31,001 --> 02:25:33,000 REGARDLESS OF PARTY TO TRY TO 3378 02:25:33,001 --> 02:25:35,000 ACCOMMODATE THEIR INTERESTS. 3379 02:25:35,001 --> 02:25:36,000 I COMMEND THE SENATOR FROM TEXAS 3380 02:25:36,001 --> 02:25:41,000 FOR POINTING OUT THE FACT THAT, 3381 02:25:41,001 --> 02:25:42,000 FOR EXAMPLE, COMMUNITY-BASED AND 3382 02:25:42,001 --> 02:25:43,000 INDEPENDENT BANKS COME OUT OF 3383 02:25:43,001 --> 02:25:45,000 THE THIS LEGISLATION AS ONE OF 3384 02:25:45,001 --> 02:25:46,000 THE REAL WINNERS IN TERMS OF 3385 02:25:46,001 --> 02:25:48,000 THEIR ABILITY TO HAVE A MORE 3386 02:25:48,001 --> 02:25:50,000 FAIR COMPETITION WITH A LARGER INSTITUTION. 3387 02:25:50,001 --> 02:25:51,000 I WANT TO COMMEND THE CHAIRMAN. 3388 02:25:51,001 --> 02:25:53,000 I WANT TO COMMEND ALL MY 3389 02:25:53,001 --> 02:25:55,000 COLLEAGUES ON BOTH SIDES OF THE 3390 02:25:55,001 --> 02:25:56,000 AISLE, EVEN THOSE WHO PERHAPS 3391 02:25:56,001 --> 02:25:58,000 COULDN'T VOTE FOR THE FAL 3392 02:25:58,001 --> 02:26:02,000 PRODUCT BUT WERE PART OF 3393 02:26:02,001 --> 02:26:04,000 BUILDING THE PRODUCT, AND THAT 3394 02:26:04,001 --> 02:26:05,000 THEIR IDEAS WERE IMPLEMENTED. 3395 02:26:05,001 --> 02:26:06,000 I THINK THIS PIECE OF 3396 02:26:06,001 --> 02:26:09,000 LEGISLATION WILL, WHEN WE THINK 3397 02:26:09,001 --> 02:26:12,000 ABOUT THE GLASS-STEAGALLS, ABOUT 3398 02:26:12,001 --> 02:26:13,000 THE BILLS THAT KETD THE FDIC, 3399 02:26:13,001 --> 02:26:14,000 THE BILLS IN THE MOMENT OF 3400 02:26:14,001 --> 02:26:16,000 CRISIS CREATED THE FINANCIAL 3401 02:26:16,001 --> 02:26:17,000 FRAMEWORK FOR 20th CENTURY 3402 02:26:17,001 --> 02:26:19,000 AMERICAN CAPITALISM, THAT WHAT 3403 02:26:19,001 --> 02:26:22,000 THIS BILL HAS DONE, AND THERE 3404 02:26:22,001 --> 02:26:23,000 WILL BE WORK DONE TO IMPROVE, TO 3405 02:26:23,001 --> 02:26:25,000 FULLY IMPLEMENT IT, BUT WHAT 3406 02:26:25,001 --> 02:26:27,000 THIS BILL HAS DONE IS SET 3407 02:26:27,001 --> 02:26:29,000 FRAMEWORK FOR 21st CENTURY 3408 02:26:29,001 --> 02:26:32,000 AMERICAN CAPITALISM, IN A 3409 02:26:32,001 --> 02:26:34,000 CERTAIN WAY THE FRAMEWORK FOR 3410 02:26:34,001 --> 02:26:36,000 21st CENTURY CAPITALISM ACROSS 3411 02:26:36,001 --> 02:26:39,000 THE WORLD IN A WAY AMERICA CAN 3412 02:26:39,001 --> 02:26:40,000 REMAIN THE CENTER FOR FINANCIAL 3413 02:26:40,001 --> 02:26:43,000 MARKETS BUT AT T SAME TIME 3414 02:26:43,001 --> 02:26:46,000 MAKE SURE THE CONSUMERS AND THE 3415 02:26:46,001 --> 02:26:48,000 INVESTING PUBLIC IS MADE SAFE IN 3416 02:26:48,001 --> 02:26:55,000 THIS NEW AND INVESTING WORLD. 3417 02:26:55,001 --> 02:26:56,000 WITH THAT, MADAM CHAIRMAN, I 3418 02:26:56,001 --> 02:26:59,000 YIELD THE FLOOR. THE PRESIDING OFFICER: THE 3419 02:26:59,001 --> 02:27:00,000 SENATOR FROM ARIZONA. 3420 02:27:00,001 --> 02:27:02,000 MR. KYL: THANK YOU. 3421 02:27:02,001 --> 02:27:03,000 I TOO WOULD LIKE TO SPEAK TO THE 3422 02:27:03,001 --> 02:27:04,000 CONFERENCE REPORT ON THE 3423 02:27:04,001 --> 02:27:05,000 FINANCIAL REGULATORY REFORM 3424 02:27:05,001 --> 02:27:06,000 WHICH WE WILL VOTE ON HERE IN A 3425 02:27:06,001 --> 02:27:08,000 COUPLE OF HOURS. 3426 02:27:08,001 --> 02:27:11,000 I THINK WE ALL AGREE THAT THE 3427 02:27:11,001 --> 02:27:17,000 PURPOSE OF THE FINANCIAL REGULAR 3428 02:27:17,001 --> 02:27:21,000 REFORM -- REGULATORY REFORM 3429 02:27:21,001 --> 02:27:23,000 SHOULD HAVE BEEN THE IMPETUS TO 3430 02:27:23,001 --> 02:27:25,000 TACKLE THE PROBLEM. 3431 02:27:25,001 --> 02:27:27,000 REIN IN TWO GOVERNMENT SPONSORED 3432 02:27:27,001 --> 02:27:30,000 ENTERPRISES, THE G.S.E.'S, 3433 02:27:30,001 --> 02:27:31,000 FANNIE MAE AND FREDD MAC. 3434 02:27:31,001 --> 02:27:32,000 BUT DESPITE ITS SIZE AND THE 3435 02:27:32,001 --> 02:27:35,000 HYPE BEHIND IT, THE BILL BEFORE 3436 02:27:35,001 --> 02:27:36,000 US FAILS IN THOSE TWO KEY RESPECTS. 3437 02:27:36,001 --> 02:27:37,000 MOREOVER, EVEN THOUGH MAIN 3438 02:27:37,001 --> 02:27:39,000 STREET DID NOT CAUSE THE 3439 02:27:39,001 --> 02:27:41,000 PROBLEM, THE BILL IS SO 3440 02:27:41,001 --> 02:27:42,000 PERVASIVE IN ITS REGULATORY 3441 02:27:42,001 --> 02:27:44,000 REACH THAT, IT CREATES NEW 3442 02:27:44,001 --> 02:27:45,000 BURDENS FOR MAIN STREET 3443 02:27:45,001 --> 02:27:46,000 BUSINESSES. 3444 02:27:46,001 --> 02:27:49,000 I'M NOT SURE THAT'S WHAT THE 3445 02:27:49,001 --> 02:27:50,000 BILL'S SUPPORTERS WANT OR ITS 3446 02:27:50,001 --> 02:27:54,000 AUTHORS INTEND, BUT THAT WILL BE THE RESULT. 3447 02:27:54,001 --> 02:27:56,000 FOR EXAMPLE, A JULY 14 "WALL 3448 02:27:56,001 --> 02:27:57,000 STREET JOURNAL" NEWS ARTICLE 3449 02:27:57,001 --> 02:28:00,000 ENTITLED FINANCIAL OVERHAUL 3450 02:28:00,001 --> 02:28:02,000 CASTS LONG SHADOWS ON THE PLAINS 3451 02:28:02,001 --> 02:28:03,000 EXPLAINS HOW NEW DERIVATIVES 3452 02:28:03,001 --> 02:28:04,000 RULES WILL HARM AMERICA'S 3453 02:28:04,001 --> 02:28:05,000 LIVESTOCK FARMERS. 3454 02:28:05,001 --> 02:28:07,000 THERE ARE OTHER PROBLEMS WITH THE BILL. 3455 02:28:07,001 --> 02:28:08,000 THE BIGGEST NEW PROBLEM THAT IT 3456 02:28:08,001 --> 02:28:09,000 CAUSES IS THE HARM TO THE 3457 02:28:09,001 --> 02:28:11,000 AVAILABILITY OF CREDIT, 3458 02:28:11,001 --> 02:28:12,000 SOMETHING THAT OUR COLLEAGUE, 3459 02:28:12,001 --> 02:28:15,000 SENATOR GREGG FROM NEW HAMPSHIRE 3460 02:28:15,001 --> 02:28:17,000 HAS TALKED A LOT ABOUT. 3461 02:28:17,001 --> 02:28:19,000 IT IMPLEMENTS ONE-SIZE-FITS-ALL 3462 02:28:19,001 --> 02:28:21,000 CAPITAL STANDARDS AND USES 3463 02:28:21,001 --> 02:28:22,000 FLAWEDUNDING MECHANISMS. 3464 02:28:22,001 --> 02:28:24,000 IT PERPETUATES BAILOUTS AND 3465 02:28:24,001 --> 02:28:25,000 BURDENS NEW BUSINESSES WITH 3466 02:28:25,001 --> 02:28:27,000 REGULATIONS WHICH I'LL SPEAK ABOUT IN A MOMENT. 3467 02:28:27,001 --> 02:28:29,000 LET ME JUST ADDRESS A FEW OF 3468 02:28:29,001 --> 02:28:30,000 THESE PROBLEMS IN MORE DETAIL. 3469 02:28:30,001 --> 02:28:31,000 FIRST, THE COSTS AND OFFSETS OF 3470 02:28:31,001 --> 02:28:33,000 THE BILL. 3471 02:28:33,001 --> 02:28:35,000 SECOND, THE FAILURE TO ADDRESS 3472 02:28:35,001 --> 02:28:36,000 THE G.S.E.'S, FANNIE MAE AND 3473 02:28:36,001 --> 02:28:38,000 FREDDIE MAC. 3474 02:28:38,001 --> 02:28:39,000 AND THIRD, THE JOB-KILLING 3475 02:28:39,001 --> 02:28:40,000 CONSUMER PROTECTION BUREAU THAT 3476 02:28:40,001 --> 02:28:42,000 WILL REDE AVAILABLE CREDIT FOR 3477 02:28:42,001 --> 02:28:44,000 AMERICAN BUSINESSES AND, THUS, 3478 02:28:44,001 --> 02:28:47,000 REDUCE JOB CREATION. 3479 02:28:47,001 --> 02:28:48,000 FIRST, THE COST AND OFFSETS. 3480 02:28:48,001 --> 02:28:50,000 THE CONGRESSIONAL BUDGET OFFICE 3481 02:28:50,001 --> 02:28:52,000 HAS PUT THE TEN-YEAR COST OF THE 3482 02:28:52,001 --> 02:28:54,000 CONFERENCE REPORT BILL AT 3483 02:28:54,001 --> 02:28:57,000 APPROXIMATELY $19 BILLION. 3484 02:28:57,001 --> 02:28:59,000 THAT'S THE COST OF THIS ALLEGED 3485 02:28:59,001 --> 02:29:00,000 NEW REFORM. 3486 02:29:00,001 --> 02:29:03,000 NOW, DEMOCRATS INITIALLY TRIED 3487 02:29:03,001 --> 02:29:05,000 TO FUND THIS OBLIGATION WITH A 3488 02:29:05,001 --> 02:29:06,000 NEW TAX IMPOSED ON LARGE 3489 02:29:06,001 --> 02:29:08,000 FINANCIAL INSTITUTIONS. 3490 02:29:08,001 --> 02:29:10,000 AND THAT COULDN'T BE SUSTAINED. 3491 02:29:10,001 --> 02:29:12,000 THEY DECIDE ON A NEW FUNDING 3492 02:29:12,001 --> 02:29:14,000 MECHANISM THAT AS NATIONAL 3493 02:29:14,001 --> 02:29:17,000 REVIEW RECENTLY EDITORIALIZED, 3494 02:29:17,001 --> 02:29:18,000 WERE A CORPORATION TO TRY IT, 3495 02:29:18,001 --> 02:29:19,000 WOULD GET ITS ACCOUNTANT SENT TO 3496 02:29:19,001 --> 02:29:20,000 PRISON FOR FRAUD. 3497 02:29:20,001 --> 02:29:23,000 HERE'S HOW IT WORKS. 3498 02:29:23,001 --> 02:29:24,000 THE BILL WOULD NOW CANCEL THE 3499 02:29:24,001 --> 02:29:28,000 TROUBLED ASSET RELIEF PROGRAM, 3500 02:29:28,001 --> 02:29:31,000 OR TARP, A FEW MONTHS EARLY. 3501 02:29:31,001 --> 02:29:33,000 THUS, SAVING THEORETICALLY THE 3502 02:29:33,001 --> 02:29:34,000 GOVERNMENT AROUND $11 BILLION, 3503 02:29:34,001 --> 02:29:36,000 EVEN THOUGH IT'S HIGHLY UNLIKELY 3504 02:29:36,001 --> 02:29:37,000 THAT THAT MONEY WOULD EVER HAVE 3505 02:29:37,001 --> 02:29:41,000 BEEN USED TO MAKE ADDITIONAL 3506 02:29:41,001 --> 02:29:42,000 TARP LOANS. 3507 02:29:42,001 --> 02:29:44,000 THAT $11 BILLION WOULD BE USED 3508 02:29:44,001 --> 02:29:45,000 TO PARTIALLY OFFSET THE COST OF 3509 02:29:45,001 --> 02:29:46,000 THE BILL. 3510 02:29:46,001 --> 02:29:49,000 REMEMBER, THAT'S MONEY THAT HAS 3511 02:29:49,001 --> 02:29:51,000 TO BE BORE HEOD. 3512 02:29:51,001 --> 02:29:54,000 IN RE -- BORROWED. 3513 02:29:54,001 --> 02:29:56,000 INSTEAD OF BORROWING $11 BILLION 3514 02:29:56,001 --> 02:29:58,000 FEWER DOLLARS, WE'RE GOING TO 3515 02:29:58,001 --> 02:30:00,000 PRETEND WE HAVE THAT MONEY AND 3516 02:30:00,001 --> 02:30:02,000 WE'RE GOING TO SAVE IT BY NOT 3517 02:30:02,001 --> 02:30:03,000 SPENDING IT ON TARP SO WE'LL 3518 02:30:03,001 --> 02:30:05,000 SPEND IT ON THIS LEGISLATION. 3519 02:30:05,001 --> 02:30:07,000 IT IS A DOUBLE COUNTING THAT 3520 02:30:07,001 --> 02:30:10,000 NATIONAL REVIEW IS RIGHT, IT 3521 02:30:10,001 --> 02:30:12,000 WOULD PUT PRIVATE BUSINESS 3522 02:30:12,001 --> 02:30:14,000 C.E.O. OR C.F.O. IN JAIL IF HE 3523 02:30:14,001 --> 02:30:15,000 TRIED TO DO AN ACCOUNTING TRICK 3524 02:30:15,001 --> 02:30:18,000 LIKE THAT. 3525 02:30:18,001 --> 02:30:21,000 THE TARP LAW, MOREOVER, STATES 3526 02:30:21,001 --> 02:30:25,000 ANY MONEY RESCINDED FROM TARP 3527 02:30:25,001 --> 02:30:27,000 SHALL NOT BE FOR BUDGET 3528 02:30:27,001 --> 02:30:30,000 ENFORCEMENT THE CONFERENCE 3529 02:30:30,001 --> 02:30:33,000 REPORT NEVERTHELESS USES THIS 3530 02:30:33,001 --> 02:30:35,000 ALLEGED SAVINGS TO PAY FOR THE 3531 02:30:35,001 --> 02:30:37,000 FINANCIAL REFORM PROVISIONS, 3532 02:30:37,001 --> 02:30:38,000 THEREBY VIOLATING THEETTER AN 3533 02:30:38,001 --> 02:30:40,000 SPIRIT OF THE TARP LAW. 3534 02:30:40,001 --> 02:30:42,000 AND, AS I SAID, FINALLY MAKING 3535 02:30:42,001 --> 02:30:44,000 THESE FUNDS TO PAY FOR SOMETHING 3536 02:30:44,001 --> 02:30:45,000 ELSE RATHER THAN RESCINDING THEM 3537 02:30:45,001 --> 02:30:46,000 PUSHING OUR NATION DEEPER INTO 3538 02:30:46,001 --> 02:30:48,000 DEBT. 3539 02:30:48,001 --> 02:30:50,000 SO, MADAM PRESIDENT, WITH REGARD 3540 02:30:50,001 --> 02:30:52,000 TO THE COST OF THE 3541 02:30:52,001 --> 02:30:54,000 BILL, $19 BILLION AND THE 3542 02:30:54,001 --> 02:30:56,000 OFFSET, MUCH OF WHICH IS NOT A 3543 02:30:56,001 --> 02:30:57,000 TRUE OFFSET, BUT SIMPLE DOUBLE-A 3544 02:30:57,001 --> 02:31:03,000 ACCOUNTING WITH MONEY THAT WE 3545 02:31:03,001 --> 02:31:05,000 DON'T OWN OR HAVE ANYWAY IS A 3546 02:31:05,001 --> 02:31:06,000 BAD WAY TO DO BUSINESS 3547 02:31:06,001 --> 02:31:08,000 ESPECIALLY IN SOMETHING THAT IS 3548 02:31:08,001 --> 02:31:10,000 CALLED A FINANCIAL REFORM BILL. 3549 02:31:10,001 --> 02:31:12,000 I GUESS, FORTUNATELY, WE'VE 3550 02:31:12,001 --> 02:31:13,000 CHANGED THE NAME TO REFLECT THE 3551 02:31:13,001 --> 02:31:15,000 AUTHORS OF THE BILL. 3552 02:31:15,001 --> 02:31:18,000 IT IS NO LONGER THE FINANCIAL 3553 02:31:18,001 --> 02:31:19,000 REFORM B 3554 02:31:19,001 --> 02:31:24,000 DODD-FRANK BILL. 3555 02:31:24,001 --> 02:31:25,000 I APPRECIATE THE NAME OF MY GOOD 3556 02:31:25,001 --> 02:31:26,000 FRIEND FROM THE SENATOR FROM 3557 02:31:26,001 --> 02:31:27,000 CONNECTICUT. 3558 02:31:27,001 --> 02:31:28,000 TT ISN'T FINANCIAL REFORM WHEN 3559 02:31:28,001 --> 02:31:31,000 YOU TAKE MONEY YOU DON'T HAVE 3560 02:31:31,001 --> 02:31:34,000 AND SPEND IT FOR SOMETHINGHAT 3561 02:31:34,001 --> 02:31:35,000 YOU'RE NOT LEGALLY OBLIGATED TO 3562 02:31:35,001 --> 02:31:40,000 SPEND IT FOR. 3563 02:31:40,001 --> 02:31:41,000 PROBLEM NUMBER TWO, FANNIE AND 3564 02:31:41,001 --> 02:31:43,000 FREDDIE. 3565 02:31:43,001 --> 02:31:45,000 IF IT DOESN'T REFORM TWO O THE 3566 02:31:45,001 --> 02:31:47,000 BIGGEST PROBLEMS, FANNIE MAE AND 3567 02:31:47,001 --> 02:31:48,000 FREDDIE MAC. 3568 02:31:48,001 --> 02:31:50,000 THEY WERE A MAJOR CAUSE OF THE 3569 02:31:50,001 --> 02:31:51,000 FINANCIAL CRISIS. 3570 02:31:51,001 --> 02:31:52,000 IT'S NOT FOR LACK OF TRYING ON 3571 02:31:52,001 --> 02:31:54,000 THE REPUBLICANS' PART. 3572 02:31:54,001 --> 02:31:55,000 OUR DEMOCRATIC FRIENDS SAY WE'LL 3573 02:31:55,001 --> 02:31:56,000 DO THAT LATER. 3574 02:31:56,001 --> 02:31:58,000 MAYBE NEXT YEAR. 3575 02:31:58,001 --> 02:32:00,000 I SUGGEST THAT'S HIGHLY IMPROBABLE. 3576 02:32:00,001 --> 02:32:01,000 THE WAY THAT THINGS WORK AROUND 3577 02:32:01,001 --> 02:32:02,000 HERE, WHEN YOU DO A 3578 02:32:02,001 --> 02:32:04,000 COMPREHENSIVE BILL LIKE THIS, 3579 02:32:04,001 --> 02:32:05,000 THERE ARE A LOT OF TRADEOFFS. 3580 02:32:05,001 --> 02:32:06,000 THERE ARE A LOT OF DIFFERENT 3581 02:32:06,001 --> 02:32:08,000 INTERESTS INVOLVED. 3582 02:32:08,001 --> 02:32:09,000 AND IF YOU CAN'T INCLUDE ALL OF 3583 02:32:09,001 --> 02:32:11,000 THE ELEMENTS IN ONE BILL, IT'S 3584 02:32:11,001 --> 02:32:13,000 VERY DIFFICULT TO FIND THE 3585 02:32:13,001 --> 02:32:15,000 POLITICAL WILL TO TACKLE THE 3586 02:32:15,001 --> 02:32:16,000 BIGGEST PROBLEM OF ALL, FANNIE 3587 02:32:16,001 --> 02:32:17,000 AND FREDDIE NEXT YEAR, WITHOUT 3588 02:32:17,001 --> 02:32:19,000 THE LEVERAGE OF THE OTHER 3589 02:32:19,001 --> 02:32:22,000 PROVISIONS OF THE BILL TO DEAL WITH. 3590 02:32:22,001 --> 02:32:24,000 THE BEHAVIOR OF THESE TWO 3591 02:32:24,001 --> 02:32:26,000 INSTITUTIONS, ESE G.E.'S THAT 3592 02:32:26,001 --> 02:32:29,000 HAVE COME TO EPITOMIZE TOO BIG 3593 02:32:29,001 --> 02:32:31,000 TO FAIL, HAS SURGED THROUGH THE 3594 02:32:31,001 --> 02:32:33,000 ENTIRE BANKING SECTOR AND OUR 3595 02:32:33,001 --> 02:32:36,000 ONOMY AS A WHOLE AND HAS 3596 02:32:36,001 --> 02:32:38,000 TURNED OUT TO BE ONE OF THE MOST 3597 02:32:38,001 --> 02:32:39,000 EXPENSIVE AFTEREFFECTS OF THE 3598 02:32:39,001 --> 02:32:40,000 FINANCIAL CRISIS. 3599 02:32:40,001 --> 02:32:42,000 FOR YEARS FANNIE AND FREDDIE 3600 02:32:42,001 --> 02:32:43,000 MADE MORTGAGES AVAILABLE TO TOO 3601 02:32:43,001 --> 02:32:45,000 MANY PEOPLE WHO COULD NOT REALLY 3602 02:32:45,001 --> 02:32:46,000 AFFORD THEM. 3603 02:32:46,001 --> 02:32:50,000 SMALLER COMPANIES WERE CRUSHED 3604 02:32:50,001 --> 02:32:53,000 WHILE THE TWO G.S.E.'S AND 3605 02:32:53,001 --> 02:32:55,000 SHAREHOLDERS REAPED ENORMOUS 3606 02:32:55,001 --> 02:32:56,000 PROFITS WITH THE GOVERNMENT'S 3607 02:32:56,001 --> 02:32:58,000 GUARANTEE TO PURCHASE MILLIONS 3608 02:32:58,001 --> 02:33:00,000 OF DOLLARS WORTH OF BAD 3609 02:33:00,001 --> 02:33:03,000 MORTGAGES INCLUDING THOSE MADE 3610 02:33:03,001 --> 02:33:07,000 TO RISKY SO-CALLED SUBPRIME BORROWERS. 3611 02:33:07,001 --> 02:33:09,000 IT WAS A TEXTBOOK EXAMPLE OF 3612 02:33:09,001 --> 02:33:11,000 MORALE HAZARD. 3613 02:33:11,001 --> 02:33:12,000 I WAS REMINDED GRIEFG IN 3614 02:33:12,001 --> 02:33:15,000 HEARING -- DRIVING IN HEARING AN 3615 02:33:15,001 --> 02:33:16,000 ADD ON THE RADIO WHICH SAID THAT 3616 02:33:16,001 --> 02:33:19,000 THROUGH FANNIE MAE YOU COULD GET 3617 02:33:19,001 --> 02:33:20,000 A MORTGAGE FOR 105% OF THE VALUE 3618 02:33:20,001 --> 02:33:22,000 OF YOUR HOME. 3619 02:33:22,001 --> 02:33:24,000 NOW, THAT MEANS IMMEDIATELY 3620 02:33:24,001 --> 02:33:27,000 YOU'RE SO-CALLED UNDERWATER. 3621 02:33:27,001 --> 02:33:28,000 THAT MEANS TO SAY THAT YOU OWE 3622 02:33:28,001 --> 02:33:30,000 MORE THAN YOUR HOME IS WORTH. 3623 02:33:30,001 --> 02:33:33,000 WHY ARE WE IMMEDIATELY MAKE THE 3624 02:33:33,001 --> 02:33:34,000 SAME MISTAKE WITH FANNIE MAE 3625 02:33:34,001 --> 02:33:36,000 THAT GOT US INTO THE PROBLEM IN 3626 02:33:36,001 --> 02:33:38,000 THE FIRST PLACE WHERE THE 3627 02:33:38,001 --> 02:33:39,000 MORTGAGES EXCEEDED THE VALUE OF 3628 02:33:39,001 --> 02:33:41,000 THE HOME? 3629 02:33:41,001 --> 02:33:42,000 I DON'T UNDERSTAND IT. 3630 02:33:42,001 --> 02:33:44,000 THE EASY CREDIT THAT WAS 3631 02:33:44,001 --> 02:33:47,000 PROVIDED BEFORE IS WHAT HELPED 3632 02:33:47,001 --> 02:33:49,000 TO FUEL THE RISING HOME PRICES 3633 02:33:49,001 --> 02:33:50,000 THAT CREATED THE INFLATED 3634 02:33:50,001 --> 02:33:52,000 HOUSING BUBBLE. 3635 02:33:52,001 --> 02:33:53,000 ESPECIALLY IN THE SUBPRIME 3636 02:33:53,001 --> 02:33:55,000 MORTGAGE MARKET. 3637 02:33:55,001 --> 02:33:57,000 AS PRICE ROSE, SO TOO DID THE 3638 02:33:57,001 --> 02:33:59,000 DEMAND FOR EVEN LARGER MORTGAGES 3639 02:33:59,001 --> 02:34:01,000 AND SO FANNIE AND FREDDIE LOOKED 3640 02:34:01,001 --> 02:34:04,000 FOR WAYS TO MAKE EVEN MORE 3641 02:34:04,001 --> 02:34:05,000 CREDIT AVAILABLE TO BAROERS. 3642 02:34:05,001 --> 02:34:07,000 BUT, -- BAR ROWERS. 3643 02:34:07,001 --> 02:34:10,000 WHEN THE MARKET COLLAPSED. 3644 02:34:10,001 --> 02:34:13,000 THE TWO G.S.E.'S WERE LEFT WITH 3645 02:34:13,001 --> 02:34:15,000 BILLIONS OF DOLLARS OF BAD DEBT. 3646 02:34:15,001 --> 02:34:16,000 BY 2008 THE 3647 02:34:16,001 --> 02:34:19,000 NEARLY $5 TRILLION IN MORTGAGES 3648 02:34:19,001 --> 02:34:22,000 AND MORTGAGE-BACKED SECURITIES. 3649 02:34:22,001 --> 02:34:24,000 THEY WERE OVERLEVERAGED, BUT, 3650 02:34:24,001 --> 02:34:26,000 UNFORTUNATELY, DEEMED TOO BIG TO FAIL. 3651 02:34:26,001 --> 02:34:29,000 SO WHAT DO WE HAVE TODAY? 3652 02:34:29,001 --> 02:34:32,000 FANNIE AND FREDDIE HOLD A 3653 02:34:32,001 --> 02:34:37,000 COMBINED $8.1 TRILLION O OUTSTANDING DEBT. 3654 02:34:37,001 --> 02:34:40,000 THINK OF THAT. 3655 02:34:40,001 --> 02:34:42,000 $8.1 TRILLION IN TOTE -- IN 3656 02:34:42,001 --> 02:34:43,000 TOTAL TAXPAYERS H 3657 02:34:43,001 --> 02:34:44,000 LOST $45 BILLION, BAILING THEM 3658 02:34:44,001 --> 02:34:47,000 OUT. 3659 02:34:47,001 --> 02:34:50,000 AND WHEN SECRETARY OF THE 3660 02:34:50,001 --> 02:34:53,000 TREASURY GEITHNER LIFTED BAILOUT 3661 02:34:53,001 --> 02:34:56,000 CAP, IT PUT THE TAXPAYERS ON THE 3662 02:34:56,001 --> 02:34:58,000 HOOK FOR THE REMAINDER OF THESE 3663 02:34:58,001 --> 02:35:00,000 LOSSES AT THESE TWO INSTITUTIONS. 3664 02:35:00,001 --> 02:35:03,000 SO LET'S BE CLEAR. 3665 02:35:03,001 --> 02:35:04,000 EVERY DAY THAT FANNIE AND 3666 02:35:04,001 --> 02:35:06,000 FREDDIE REMAIN IN THEIR CURRENT 3667 02:35:06,001 --> 02:35:08,000 FORM IS THE DAY THAT U.S. 3668 02:35:08,001 --> 02:35:09,000 TAXPAYERS ARE SUBSIDIZING THE 3669 02:35:09,001 --> 02:35:11,000 FAILED POLICIEOF THE PAST AND 3670 02:35:11,001 --> 02:35:13,000 I THINK IT'S VERY DOUBTFUL THAT 3671 02:35:13,001 --> 02:35:15,000 WE'RE GOING TO GET MEANINGFUL 3672 02:35:15,001 --> 02:35:17,000 REFORM WITH FANNIE AND FREDDIE 3673 02:35:17,001 --> 02:35:19,000 WHEN IT COULDN'T BE DONE IN THE 3674 02:35:19,001 --> 02:35:22,000 BILL THAT IS SUPPOSED TO DEAL 3675 02:35:22,001 --> 02:35:24,000 WITH ALL OF THE UNDERLYING 3676 02:35:24,001 --> 02:35:26,000 PROBLEMS THAT CREATED THE 3677 02:35:26,001 --> 02:35:27,000 RECESSION WE'RE IN NOW. 3678 02:35:27,001 --> 02:35:28,000 THE THIRD PROBLEM, HARMING SMALL 3679 02:35:28,001 --> 02:35:29,000 BUSINESS THROUGH CONSUMER 3680 02:35:29,001 --> 02:35:33,000 PROTECTION. 3681 02:35:33,001 --> 02:35:34,000 IT REALLY HARMS FAR MORE THAN 3682 02:35:34,001 --> 02:35:36,000 SMALL BUSINESS. 3683 02:35:36,001 --> 02:35:37,000 IT HARMS EVERYONE WHO IS TRYING 3684 02:35:37,001 --> 02:35:38,000 TO GET CREDIT. 3685 02:35:38,001 --> 02:35:40,000 AS SENATOR GREGG HAS SAID MANY 3686 02:35:40,001 --> 02:35:42,000 TIMES ON THIS FLOOR, PERHAPS THE 3687 02:35:42,001 --> 02:35:43,000 BIGGEST PROBLEM WITH THIS 3688 02:35:43,001 --> 02:35:45,000 LEGISLATION IS THE FACT IT WILL 3689 02:35:45,001 --> 02:35:47,000 MAKE CREDIT MUCH MORE EXPENSIVE 3690 02:35:47,001 --> 02:35:48,000 FOR EVERYONE. 3691 02:35:48,001 --> 02:35:51,000 LET'S START WITH SMALL BUSINESSES. 3692 02:35:51,001 --> 02:35:52,000 IN MY HOME STATE OF ARIZONA AND 3693 02:35:52,001 --> 02:35:55,000 ACROSS THE COUNTRY, THESE ARE 3694 02:35:55,001 --> 02:36:00,000 THE ENTITIES THAT HIRE -- 3695 02:36:00,001 --> 02:36:02,000 THEY'RE SUPPOSED TO BE THE FIRST 3696 02:36:02,001 --> 02:36:03,000 ONE THAT HIRE WHEN YOU COME OUT 3697 02:36:03,001 --> 02:36:06,000 OF RECESSION. 3698 02:36:06,001 --> 02:36:09,000 THE WAY TO DO THAT IS THROUGH CREDIT. 3699 02:36:09,001 --> 02:36:15,000 THEY'RE AWARE OF THE BUREAUCRACY 3700 02:36:15,001 --> 02:36:17,000 THAT MASQUERADES -- ALL OF US 3701 02:36:17,001 --> 02:36:19,000 SUPPORT THE CONCEPT OF CONSUMER 3702 02:36:19,001 --> 02:36:20,000 PROTECTION, SO LET'S DON'T GET 3703 02:36:20,001 --> 02:36:22,000 OFF AND A TANGENT OF BEING FOR 3704 02:36:22,001 --> 02:36:24,000 OR AGAINST CONSUMER PROTECTION. 3705 02:36:24,001 --> 02:36:27,000 WE ALL SUPPORT THAT. 3706 02:36:27,001 --> 02:36:30,000 THE QUESTION IS HOW YOU DO IT? 3707 02:36:30,001 --> 02:36:31,000 SAFEGUARDS CAN BE STRENGTHENED 3708 02:36:31,001 --> 02:36:33,000 WITHOUT CREATING A REGULORY 3709 02:36:33,001 --> 02:36:35,000 BUREAUCRACY WITH THE POWERS THAT 3710 02:36:35,001 --> 02:36:37,000 EXIST IN THIS BILL AND ALL OF 3711 02:36:37,001 --> 02:36:39,000 THE UNTOWARD RAMIFICATNS THAT 3712 02:36:39,001 --> 02:36:40,000 RESULT. 3713 02:36:40,001 --> 02:36:42,000 UNFORTUNATELY THE CONFERENCE 3714 02:36:42,001 --> 02:36:43,000 REPORT MAINTAINS WITH VERY 3715 02:36:43,001 --> 02:36:46,000 LITTLE CHANGE THE FLAWED 3716 02:36:46,001 --> 02:36:47,000 CONSUMER PROTECTION FINANCIAL 3717 02:36:47,001 --> 02:36:50,000 PROTECTION BUREAU FROM THE BILL 3718 02:36:50,001 --> 02:36:53,000 THAT WAS PASSED IN THE SENATE, 3719 02:36:53,001 --> 02:36:55,000 THE SO-CALLED CFPB. 3720 02:36:55,001 --> 02:36:57,000 IT IS HOUSED IN AND FUNDED BY 3721 02:36:57,001 --> 02:36:59,000 THE FEDERAL RESERVE. 3722 02:36:59,001 --> 02:37:02,000 BUT THEORETICALLY WOULD OPERATE 3723 02:37:02,001 --> 02:37:03,000 AS AN INDEPENDENT AGENCY WITH AN 3724 02:37:03,001 --> 02:37:06,000 ENORMOUS BUDGET AND WITH RULE 3725 02:37:06,001 --> 02:37:08,000 WRITING ABILITY THAT WILL CREATE 3726 02:37:08,001 --> 02:37:12,000 INDEPENDENCE FROM THE FED. 3727 02:37:12,001 --> 02:37:14,000 THE CFPB COULD REDUCE CREDIT 3728 02:37:14,001 --> 02:37:15,000 ACCESS FOR SMALL BUSINESSES AND 3729 02:37:15,001 --> 02:37:16,000 THEREBY JEOPARDIZE AMERICA'S 3730 02:37:16,001 --> 02:37:18,000 ECONOMIC RECOVERY. 3731 02:37:18,001 --> 02:37:21,000 WITHOUT AVAILABLE CREDIT, 3732 02:37:21,001 --> 02:37:22,000 COMPANIES DIDN'T GROW AND 3733 02:37:22,001 --> 02:37:23,000 CONSEQUENTLY WILL NOT HIRE 3734 02:37:23,001 --> 02:37:25,000 ADDITIONAL AMERICAN WORKERS. 3735 02:37:25,001 --> 02:37:27,000 OBVIOUSLY THAT'S NOT WHAT THE 3736 02:37:27,001 --> 02:37:30,000 BILL'S AUTHORS INTENDED. 3737 02:37:30,001 --> 02:37:32,000 BUT IT IS THE INEVITABLE RESULT. 3738 02:37:32,001 --> 02:37:34,000 THE NEW BUREAU WILL HAVE A SAY 3739 02:37:34,001 --> 02:37:35,000 IN ALMOST EVERY ASPECT OF 3740 02:37:35,001 --> 02:37:39,000 AMERICAN BUSINESS. 3741 02:37:39,001 --> 02:37:42,000 IN AN ATTEMPT TO ENSURE -- AND 3742 02:37:42,001 --> 02:37:43,000 I'M -- QUOTING -- "TO ENSURE THE 3743 02:37:43,001 --> 02:37:46,000 NONDISCRIMINATORY ACCESS TO 3744 02:37:46,001 --> 02:37:48,000 CREDIT FOR INDIVIDUALS AND 3745 02:37:48,001 --> 02:37:50,000 COMMUNITIES" END OF QUOTE, THE 3746 02:37:50,001 --> 02:37:52,000 WORDING IN THE LAW, THE NEW 3747 02:37:52,001 --> 02:37:54,000 BUREAU WILL HAVE NEW LATITUDE TO 3748 02:37:54,001 --> 02:37:56,000 IMPOSE ITS WILL WITH FEW CHECKS 3749 02:37:56,001 --> 02:37:57,000 AND BALANCES ON AMERICAN 3750 02:37:57,001 --> 02:38:00,000 PROVIDERS, ALL OF WHICH WILL 3751 02:38:00,001 --> 02:38:02,000 RESULT IN MORE EXPENSE, MORE 3752 02:38:02,001 --> 02:38:03,000 REGULATION, HIGHER COSTS FOR 3753 02:38:03,001 --> 02:38:04,000 CONSUMERS AND LESS AVAILABLITY 3754 02:38:04,001 --> 02:38:09,000 OF CREDIT. 3755 02:38:09,001 --> 02:38:11,000 THE CFPB EXPOSES COMPANIES TO 3756 02:38:11,001 --> 02:38:12,000 COSTLY COMPLIANCE AND EXTENSIVE 3757 02:38:12,001 --> 02:38:15,000 ENFORCEMENT PROCEEDINGS 3758 02:38:15,001 --> 02:38:17,000 INCLUDING POTENTIALLY FRIVOLOUS 3759 02:38:17,001 --> 02:38:19,000 LAWSUITS BY ELIMINATING NATIONAL 3760 02:38:19,001 --> 02:38:21,000 PREEMPTION AND OTHER MEANS. 3761 02:38:21,001 --> 02:38:24,000 THE POTENTIAL COSTS OF THIS 3762 02:38:24,001 --> 02:38:25,000 BUREAU DO NOT JUSTIFY THE 3763 02:38:25,001 --> 02:38:27,000 PURPORTED BENEFITS. 3764 02:38:27,001 --> 02:38:29,000 CONSUMER PROTECTION COULD HAVE 3765 02:38:29,001 --> 02:38:30,000 BEEN ACCOMPLISHED IN MUCH LESS 3766 02:38:30,001 --> 02:38:33,000 INTRUSIVE AND FAIR WAYS. 3767 02:38:33,001 --> 02:38:34,000 WE WANT TO SHIELD THE CONSUMERS 3768 02:38:34,001 --> 02:38:36,000 FROM ABUSES AND EXPLOITATION OF 3769 02:38:36,001 --> 02:38:37,000 THIS IS OBVIOUSLY NOT THE RIGHT 3770 02:38:37,001 --> 02:38:39,000 WAY TO DO IT. 3771 02:38:39,001 --> 02:38:41,000 WE SHOULD ASK OURSELVES ONE 3772 02:38:41,001 --> 02:38:42,000 QUESTION: WHY IS IT THAT THE 3773 02:38:42,001 --> 02:38:44,000 C.E.O. OF SOME OF THE LARGEST 3774 02:38:44,001 --> 02:38:46,000 COMPANIE ON WALL STREET, SOME 3775 02:38:46,001 --> 02:38:48,000 OF THE LARGEST FINANCIAL 3776 02:38:48,001 --> 02:38:49,000 INSTITUTIONS ACTUALLY FAVOR THIS BILL? 3777 02:38:49,001 --> 02:38:51,000 IT'S NO SKIN OFF THEIR BACK. 3778 02:38:51,001 --> 02:38:52,000 THEY'VE GOT THE MONEY AND 3779 02:38:52,001 --> 02:38:54,000 EY'VE GOT THE RESOURCES AND 3780 02:38:54,001 --> 02:38:56,000 THE PERSONNEL TO DEAL WITH ITS 3781 02:38:56,001 --> 02:38:57,000 COMPLEXITY AND TO PUT THE MONEY 3782 02:38:57,001 --> 02:38:59,000 UPFRONT AND THEN CHARGE THE 3783 02:38:59,001 --> 02:39:01,000 CONSUME ERTS ON DOWN THE -- 3784 02:39:01,001 --> 02:39:04,000 CONSUMERS ON DOWN THE LINE. 3785 02:39:04,001 --> 02:39:07,000 IT WOULD ENTRENCH THEIR 3786 02:39:07,001 --> 02:39:08,000 FRIVOLOUS STATUS AND WOULD 3787 02:39:08,001 --> 02:39:11,000 INSTITUTIONALIZE THE IDEA THAT 3788 02:39:11,001 --> 02:39:13,000 CERTAIN BIG FINANCIAL FIRMS 3789 02:39:13,001 --> 02:39:15,000 DESERVE PREFERENTIAL TREATMENT BY FEDERAL REGULATORS. 3790 02:39:15,001 --> 02:39:17,000 SO FOR ALL OF THE REASONS I 3791 02:39:17,001 --> 02:39:20,000 DISCUSSED, AS WELL AS OTHERS, 3792 02:39:20,001 --> 02:39:22,000 AND DESPITE MY STRONG DESIRE TO 3793 02:39:22,001 --> 02:39:24,000 ENACT PRUDENT FINANCIAL REFORPS, 3794 02:39:24,001 --> 02:39:29,000 I THINK THIS LKS IS 3795 02:39:29,001 --> 02:39:31,000 I CAN'T SUPPORT IT AND I 3796 02:39:31,001 --> 02:39:32,000 COLLEAGUES TO VOTE AGAINST 3797 02:39:32,001 --> 02:39:33,000 MR. DODD: MR. PRESIDENT? 3798 02:39:33,001 --> 02:39:34,000 THE PRESIDING OFFICER: THE 3799 02:39:34,001 --> 02:39:36,000 SENATOR FROM CONNECTICUT. 3800 02:39:36,001 --> 02:39:38,000 MR. DODD: I RECOGNIZE MY FRIEND 3801 02:39:38,001 --> 02:39:40,000 AND COLLEAGUE FROM DELAWARE. 3802 02:39:40,001 --> 02:39:41,000 MR. KAUFMAN: I HAVE NINE 3803 02:39:41,001 --> 02:39:42,000 UNANIMOUS CONSENT FOR COMMITTEES 3804 02:39:42,001 --> 02:39:43,000 TO MEET IN THE SENATE. 3805 02:39:43,001 --> 02:39:45,000 I ASK UNANIMOUS CONSENT THESE 3806 02:39:45,001 --> 02:39:46,000 REQUESTS BE AGREED TO AND THESE 3807 02:39:46,001 --> 02:39:47,000 REQUESTS BE PRINTED IN THE RECORD. 3808 02:39:47,001 --> 02:39:48,000 THE PRESIDING OFFICER: WITHOUT 3809 02:39:48,001 --> 02:39:50,000 OBJECTION. 3810 02:39:50,001 --> 02:39:52,000 MR. KAUFMAN: I RISE TO SPEAK ON 3811 02:39:52,001 --> 02:39:59,000 THE DODD-FRANK BILL. 3812 02:39:59,001 --> 02:40:05,000 I -- I MUST START BY EXPRESSING 3813 02:40:05,001 --> 02:40:06,000 MY AWE, SHOCK AND AWE, AWE AT 3814 02:40:06,001 --> 02:40:08,000 WHAT CHAIRMAN DODD HAS BEEN ABLE 3815 02:40:08,001 --> 02:40:09,000 TO DO DURING THIS SESSION OF THE 3816 02:40:09,001 --> 02:40:10,000 CONGRESS. 3817 02:40:10,001 --> 02:40:13,000 I'VE -- I'VE BEEN AROUND THIS 3818 02:40:13,001 --> 02:40:15,000 PLACE SINCE 1973, AND I CANNOT 3819 02:40:15,001 --> 02:40:17,000 THINK -- GENUINELY CANNOT THINK 3820 02:40:17,001 --> 02:40:20,000 OF AN EXAMPLE WHERE AN 3821 02:40:20,001 --> 02:40:23,000 INDIVIDUAL SENATOR EVER 3822 02:40:23,001 --> 02:40:27,000 PARTICIPATED IN PASSING THREE 3823 02:40:27,001 --> 02:40:29,000 BILLS IN ONE CONGRESS OF THE 3824 02:40:29,001 --> 02:40:31,000 MAGNITUDE OF THE HEALTH CARE 3825 02:40:31,001 --> 02:40:33,000 BILL, THE CREDIT CARD REFORM 3826 02:40:33,001 --> 02:40:34,000 BILL, AND NOW THE DODD-FRANK 3827 02:40:34,001 --> 02:40:37,000 BILL. 3828 02:40:37,001 --> 02:40:41,000 I MEAN, IT IS -- IT IS -- IF 3829 02:40:41,001 --> 02:40:43,000 THERE IS A LEGISLATIVE HALL OF 3830 02:40:43,001 --> 02:40:44,000 FAME, THERE'S A SPOT FOR CHRIS 3831 02:40:44,001 --> 02:40:47,000 DODD IN THAT HALL OF FAME. 3832 02:40:47,001 --> 02:40:49,000 AND I'M GOING TO SPEAK ON 3833 02:40:49,001 --> 02:40:50,000 SOMETHING TODAY ABOUT AREAS 3834 02:40:50,001 --> 02:40:51,000 WHERE I DON'T AGREE WITH THIS 3835 02:40:51,001 --> 02:40:52,000 BILL. 3836 02:40:52,001 --> 02:40:53,000 ANYONE WHO FOLLOWED MY SPEECHES 3837 02:40:53,001 --> 02:40:54,000 ON THE FLOOR WOULD RECOGNIZE 3838 02:40:54,001 --> 02:40:57,000 THAT I HAVE A DIFFERENCE OF 3839 02:40:57,001 --> 02:41:00,000 OPINION ON A NUMBER OF ISSUES. 3840 02:41:00,001 --> 02:41:01,000 HOWEVER, I WANT TO MAKE IT CLEAR 3841 02:41:01,001 --> 02:41:03,000 FROM THE BEGINNINGS AND I'LL 3842 02:41:03,001 --> 02:41:05,000 RAISE IT AGAIN IN MY SPEECH, THE 3843 02:41:05,001 --> 02:41:08,000 EXTENT THIS BILL DOESN'T REACH 3844 02:41:08,001 --> 02:41:10,000 WHAT I WANT IT TO REACH, THE 3845 02:41:10,001 --> 02:41:12,000 RESPONSIBILITY LIES ON MY 3846 02:41:12,001 --> 02:41:13,000 FRIENDS, AND I TRULY MEAN MY 3847 02:41:13,001 --> 02:41:14,000 FRIENDS AND COLLEAGUES ON THE 3848 02:41:14,001 --> 02:41:17,000 OTHER SIDE OF THE AISLE. 3849 02:41:17,001 --> 02:41:19,000 TIME AND AGAIN, VOTE AFTER VOTE 3850 02:41:19,001 --> 02:41:22,000 THEY VOTE AS A -- AS A BLOCK TO 3851 02:41:22,001 --> 02:41:25,000 BLOCK MEANINGFUL REFORM ON MANY ISSUES. 3852 02:41:25,001 --> 02:41:27,000 WHEN YOU JUST TALK ABOUT 3853 02:41:27,001 --> 02:41:29,000 BROWN-KAUFMAN AMENDMENT, TO 3854 02:41:29,001 --> 02:41:31,000 BREAKUP THE BANKS, WE CAN TALK 3855 02:41:31,001 --> 02:41:34,000 ABOUT THE MANEUVERS THAT WERE 3856 02:41:34,001 --> 02:41:38,000 DONE ON THE SENATOR BROWNBACK 3857 02:41:38,001 --> 02:41:40,000 BILL SO THAT WE NEVER GOT A VOTE 3858 02:41:40,001 --> 02:41:41,000 ON LEVIN-MERKLEY. 3859 02:41:41,001 --> 02:41:43,000 SO AS IIVE THIS SPEECH TODAY, 3860 02:41:43,001 --> 02:41:45,000 THE REASON WE DIDN'T GET THE 3861 02:41:45,001 --> 02:41:47,000 THINGS THAT I WANTED IN THIS 3862 02:41:47,001 --> 02:41:50,000 BILL IS BECAUSE 41 REPUBLICANS 3863 02:41:50,001 --> 02:41:52,000 TIME AND TIME AND TIME AGAIN 3864 02:41:52,001 --> 02:41:55,000 WHEN THERE WAS A VOTE UP, IT 3865 02:41:55,001 --> 02:41:57,000 COULD HAVE CHANGED THE WAY WE DO 3866 02:41:57,001 --> 02:41:58,000 THINGS, IT COULD HAVE INSTITUTED 3867 02:41:58,001 --> 02:42:00,000 THE KIND OF REFORMS THAT I WANT 3868 02:42:00,001 --> 02:42:01,000 IN THIS BILL, THEY VOTED AGAINST 3869 02:42:01,001 --> 02:42:03,000 IT. 3870 02:42:03,001 --> 02:42:04,000 AND SENATOR DODD, CHAIRMAN DODD, 3871 02:42:04,001 --> 02:42:05,000 WAS LEFT WITH THE THING OF HOW 3872 02:42:05,001 --> 02:42:06,000 DO WE GET THE VOTES TOGETHER TO 3873 02:42:06,001 --> 02:42:08,000 PASS THE BILL? 3874 02:42:08,001 --> 02:42:10,000 IT'S ESSENTIAL THAT WE PASS A 3875 02:42:10,001 --> 02:42:11,000 BILL AND A GOOD BILL AND WE DID 3876 02:42:11,001 --> 02:42:12,000 AND I'M VOTING FOR IT. 3877 02:42:12,001 --> 02:42:15,000 BUT IT COULD HAVE BEEN, IN MY 3878 02:42:15,001 --> 02:42:16,000 OPINION, A BETTER BILL IF 3879 02:42:16,001 --> 02:42:18,000 SEVEL VOTES HAD GONE THE OTHER 3880 02:42:18,001 --> 02:42:21,000 WAY. 3881 02:42:21,001 --> 02:42:23,000 MADAM PRESIDENT, AFTER MONTHS OF 3882 02:42:23,001 --> 02:42:25,000 CAREFUL CONSIDERATION, LANDMARK 3883 02:42:25,001 --> 02:42:26,000 FINANCIAL REFORM LEGISLATION 3884 02:42:26,001 --> 02:42:29,000 MOVES TOWARD FINAL PASSAGE. 3885 02:42:29,001 --> 02:42:30,000 WHILE THIS BILL IS A VAST 3886 02:42:30,001 --> 02:42:32,000 IMPROVEMENT OVER THE EXISTING 3887 02:42:32,001 --> 02:42:33,000 REGULATORY STRUCTURE, I BELIEVE 3888 02:42:33,001 --> 02:42:38,000 IT SHOULD GO FURTHER WITH 3889 02:42:38,001 --> 02:42:40,000 RESPECT TO ADDRESS THE PROBLEM 3890 02:42:40,001 --> 02:42:41,000 OF TOO BIG TO FAIL. 3891 02:42:41,001 --> 02:42:42,000 ANYONE WHO HEARD MY SPEECHES ON 3892 02:42:42,001 --> 02:42:43,000 THE FLOOR WOULD UNDERSTAND MY 3893 02:42:43,001 --> 02:42:46,000 POSITION ON THAT. 3894 02:42:46,001 --> 02:42:47,000 I MADE IT ABUNDANTLY CLEAR. 3895 02:42:47,001 --> 02:42:48,000 I WILL SUPPORT THE CONFERENCE 3896 02:42:48,001 --> 02:42:49,000 REPORT. 3897 02:42:49,001 --> 02:42:51,000 I DO SO WITH SIGNIFICANT 3898 02:42:51,001 --> 02:42:53,000 RESERVATIONS ABOUT A MISSED 3899 02:42:53,001 --> 02:42:55,000 OPPORTUNITY TO ENACT NEEDED 3900 02:42:55,001 --> 02:42:57,000 STRUCTURAL REFORMS THAT COULD 3901 02:42:57,001 --> 02:42:59,000 BETTER PREVENT ANOTHER FINANCIAL CRIS. 3902 02:42:59,001 --> 02:43:00,000 AS I SAID BEFORE, ULTIMATELY, 3903 02:43:00,001 --> 02:43:03,000 GIVEN THE MAKEUP OF THE SENATE 3904 02:43:03,001 --> 02:43:05,000 AND REQUIREMENT FOR 60 VOTES AND 3905 02:43:05,001 --> 02:43:06,000 THE INTRANSIGENCE ON THE OTHER 3906 02:43:06,001 --> 02:43:08,000 SIDE OF THE AISLE, THIS IS THE 3907 02:43:08,001 --> 02:43:11,000 BEST BILL THAT COULD PASS. 3908 02:43:11,001 --> 02:43:12,000 FOR THOSE TT WISH THE BILL WAS 3909 02:43:12,001 --> 02:43:14,000 STRONGER, LET THERE BE NO 3910 02:43:14,001 --> 02:43:16,000 CONFUSION ABOUT WHERE THE BLAME LIES. 3911 02:43:16,001 --> 02:43:18,000 IT IS BECAUSE ALMOST EVERY 3912 02:43:18,001 --> 02:43:20,000 SENATOR ON PT OTHER SIDE OF 3913 02:43:20,001 --> 02:43:23,000 THE -- AND THE OTHER SIDE OF THE 3914 02:43:23,001 --> 02:43:24,000 AISLE DID ALL THEY COULD TO 3915 02:43:24,001 --> 02:43:26,000 DELAY, OPPOSE WALL STREET REFORM. 3916 02:43:26,001 --> 02:43:27,000 THE BILL COMES OUT OF CONFERENCE 3917 02:43:27,001 --> 02:43:28,000 INCLUDES SOME EXTREMELY 3918 02:43:28,001 --> 02:43:30,000 IMPORTANT REFORMS. 3919 02:43:30,001 --> 02:43:31,000 IT ESTABLISHES AN INDEPENDENT 3920 02:43:31,001 --> 02:43:34,000 CONSUMER FINANCIAL PROTECTION 3921 02:43:34,001 --> 02:43:35,000 BUREAU WITH STRONG AND 3922 02:43:35,001 --> 02:43:37,000 AUTONOMOUS RULE-MAKING AUTHORITY 3923 02:43:37,001 --> 02:43:39,000 AND THE ABILITY TO ENFORCE THOSE 3924 02:43:39,001 --> 02:43:42,000 RUSE FOR LARGE BANKS AND 3925 02:43:42,001 --> 02:43:44,000 NONBANKING ENTITY LIKE PAY DAY 3926 02:43:44,001 --> 02:43:46,000 LENDERS AND MORTGAGE FINANCE COMPANIES. 3927 02:43:46,001 --> 02:43:49,000 IN ADDITION IT REQUIRES 3928 02:43:49,001 --> 02:43:51,000 ELECTRONIC TRADING AND NRLIZE -- 3929 02:43:51,001 --> 02:43:52,000 CENTRALIZED CLEARING OF 3930 02:43:52,001 --> 02:43:55,000 DERIVATIVES CONTRACTS AN ROBUST 3931 02:43:55,001 --> 02:43:56,000 AND COLLATERAL AND MARGIN 3932 02:43:56,001 --> 02:44:03,000 REQUIREMENTS. 3933 02:44:03,001 --> 02:44:05,000 THE BILL'S INCLUSION O THE 3934 02:44:05,001 --> 02:44:06,000 CANGORSKI WILL -- THAT IMPOSE A 3935 02:44:06,001 --> 02:44:07,000 GRAVE THREAT ON FINANCIAL 3936 02:44:07,001 --> 02:44:09,000 STABILITY. 3937 02:44:09,001 --> 02:44:11,000 I WAS PLEASED THAT THE BILL 3938 02:44:11,001 --> 02:44:13,000 INCLUDES A PROVISION I HELPED TO 3939 02:44:13,001 --> 02:44:14,000 DEVELOPMENT TO GIVE REGULATORS 3940 02:44:14,001 --> 02:44:15,000 ENHANCED TOOLS AND THE POWERS TO 3941 02:44:15,001 --> 02:44:17,000 PURSUE FINANCIAL FRAUD. 3942 02:44:17,001 --> 02:44:19,000 THROUGH THE COLLINS PROVISION, 3943 02:44:19,001 --> 02:44:21,000 THE BILL ALSO ESTABLISHES 3944 02:44:21,001 --> 02:44:24,000 MINIMUM LEVERAGE AND RISK-BASED 3945 02:44:24,001 --> 02:44:25,000 CAPITAL REQUIREMENTS FOR BANK 3946 02:44:25,001 --> 02:44:27,000 HOLDING COMPANIES AND 3947 02:44:27,001 --> 02:44:28,000 SYSTEMICALLY RISKY NONBANK 3948 02:44:28,001 --> 02:44:30,000 INSTITUTIONS THAT ARE AT LEAST 3949 02:44:30,001 --> 02:44:33,000 AS STRINGENT AS THOSE THAT APPLY 3950 02:44:33,001 --> 02:44:35,000 TO ENSURE DEPOSITRY INSTITUTION. 3951 02:44:35,001 --> 02:44:38,000 AN IMPORTANT REFORM IN THIS 3952 02:44:38,001 --> 02:44:40,000 BILL. 3953 02:44:40,001 --> 02:44:41,000 AND LATER THE FAILURE OF PAST 3954 02:44:41,001 --> 02:44:45,000 INTERNATIONAL CAPITAL ACCORDS, 3955 02:44:45,001 --> 02:44:47,000 THIS REQUIREMENT WILL SET A 3956 02:44:47,001 --> 02:44:49,000 MUCH-NEEDED FLOOR ON HOW LOW 3957 02:44:49,001 --> 02:44:52,000 CAPITAL CAN DROP IN THE UPCOMLG 3958 02:44:52,001 --> 02:44:53,000 BAZELL NEGOTIATIONS ON CAPITAL 3959 02:44:53,001 --> 02:44:54,000 REQUIREMENTS. 3960 02:44:54,001 --> 02:44:57,000 IT WILL ALSO ENSURE THAT THE 3961 02:44:57,001 --> 02:44:59,000 CAPITAL BANKS IS NOT ADULTERATED 3962 02:44:59,001 --> 02:45:00,000 WITH DEBT THAT MASQUERADES AS 3963 02:45:00,001 --> 02:45:01,000 EQUITY CAPITAL. 3964 02:45:01,001 --> 02:45:02,000 THAT BEING SAID, I BELIEVE THE 3965 02:45:02,001 --> 02:45:03,000 BILL SUFFERS FROM TWO MAJOR 3966 02:45:03,001 --> 02:45:05,000 PROBLEMS. 3967 02:45:05,001 --> 02:45:07,000 FIRST, THE BILL DELEGATES TOO 3968 02:45:07,001 --> 02:45:08,000 MUCH AUTHORITY TO REGULATORS. 3969 02:45:08,001 --> 02:45:09,000 I HAVE SPOKEN ABOUT THAT TIME 3970 02:45:09,001 --> 02:45:10,000 AND TIME AGAIN ON THE FLOOR. 3971 02:45:10,001 --> 02:45:11,000 I HAVE BEEN AROUND THE SENATE 3972 02:45:11,001 --> 02:45:14,000 FOR 37 YEARS. 3973 02:45:14,001 --> 02:45:15,000 AS I SAID ON THE SENATE FLOOR ON 3974 02:45:15,001 --> 02:45:17,000 FEBRUARY 4 THIS YEAR AND IN 3975 02:45:17,001 --> 02:45:18,000 SEVERAL SPEECHES SINCE THEN, I 3976 02:45:18,001 --> 02:45:19,000 KNOW THAT MANY TIMES AND MANY, 3977 02:45:19,001 --> 02:45:21,000 MANY, MANY TIMES LAWS ARE NOT 3978 02:45:21,001 --> 02:45:22,000 WRITTEN WITH HARD AND CLEAR 3979 02:45:22,001 --> 02:45:23,000 LINES. 3980 02:45:23,001 --> 02:45:25,000 LAWS ARE A PRODUCT OF 3981 02:45:25,001 --> 02:45:27,000 LEGISLATIVE COMPROMISE, AND I'VE 3982 02:45:27,001 --> 02:45:29,000 DLEAFD IN A SPEECH, WHICH OFTEN 3983 02:45:29,001 --> 02:45:30,000 MEANS THEY ARE VAGUE AND 3984 02:45:30,001 --> 02:45:31,000 AMBIOUS. 3985 02:45:31,001 --> 02:45:33,000 WE OFTEN JUSTIFY OUR VAGUENESS 3986 02:45:33,001 --> 02:45:35,000 BY SAYING THE REGULATORS TO WHOM 3987 02:45:35,001 --> 02:45:36,000 WE GRANT STATUTORY AUTHORITY ARE 3988 02:45:36,001 --> 02:45:39,000 IN A BETTER POSITION THAN WE ARE 3989 02:45:39,001 --> 02:45:40,000 TO WRITE THE RULES AND THEN TO 3990 02:45:40,001 --> 02:45:42,000 APPLY THOSE REGULATORY RULES ON 3991 02:45:42,001 --> 02:45:45,000 A CASE-BY-CASE METHOD. 3992 02:45:45,001 --> 02:45:47,000 AS I'VE SAID, THIS WAS NOT ONE 3993 02:45:47,001 --> 02:45:49,000 OF THOSE TIMES, IN MY OPINION. 3994 02:45:49,001 --> 02:45:54,000 IT WAS A TIME FOR CONGRESS TO 3995 02:45:54,001 --> 02:45:56,000 DRAW HARD LINES THAT COUL GET 3996 02:45:56,001 --> 02:45:58,000 DIRECTLY AT THE PROBLEMS THAT 3997 02:45:58,001 --> 02:46:01,000 AFFECT WALL STREET AND OUR 3998 02:46:01,001 --> 02:46:03,000 LARGERLARGELARGEST BANKS. 3999 02:46:03,001 --> 02:46:05,000 DESPITE REPEATED URGINGS, 4000 02:46:05,001 --> 02:46:09,000 CONGRESS LARGELY HAS DECIDED 4001 02:46:09,001 --> 02:46:10,000 INSTEAD TO PUNT DECISION TO 4002 02:46:10,001 --> 02:46:12,000 REGULATORS, STARTING WITH A 4003 02:46:12,001 --> 02:46:13,000 MOUNTAIN OF RULE MAKING 4004 02:46:13,001 --> 02:46:14,000 SUBSIDIES. 4005 02:46:14,001 --> 02:46:16,000 THE LAW FIRM DAVIS-POLK HAS 4006 02:46:16,001 --> 02:46:19,000 ESTIMATED THAT THE S.E.C. ALONE 4007 02:46:19,001 --> 02:46:22,000 MUST UNDERTAKE CLOSE TO 100 RULE 4008 02:46:22,001 --> 02:46:23,000 MAKINGS AND MORE THAN A DOZEN 4009 02:46:23,001 --> 02:46:24,000 STUDIES. 4010 02:46:24,001 --> 02:46:26,000 INDEED, CONGRESS HASO CHOKED 4011 02:46:26,001 --> 02:46:31,000 THE AGENCIES WITH RULE MAKING 4012 02:46:31,001 --> 02:46:32,000 STUDIES THAT THE TOTAL BURDEN 4013 02:46:32,001 --> 02:46:34,000 THREATENS THE VERY ABILITY OF 4014 02:46:34,001 --> 02:46:35,000 THE AGENCIES TO ACCOMPLISH THEIR 4015 02:46:35,001 --> 02:46:39,000 ONGOING EVERYDAY MISSION. 4016 02:46:39,001 --> 02:46:41,000 I, FOR ONE, URGE THE AGENCIESO 4017 02:46:41,001 --> 02:46:43,000 CAREFULLY TRIAGE THESE REQUIRED 4018 02:46:43,001 --> 02:46:44,000 RULE MAKING STUDIES, ESTABLISH A 4019 02:46:44,001 --> 02:46:47,000 HIERARCHY FOR PRIORITIES, AND 4020 02:46:47,001 --> 02:46:49,000 ENSURE THAT THE AGENCIES DO NOT 4021 02:46:49,001 --> 02:46:51,000 SHIFT ALL RESOURCES TO NEW RULES 4022 02:46:51,001 --> 02:46:53,000 MEANT TO ADDRESS OLD PROBLEMS TO 4023 02:46:53,001 --> 02:46:55,000 SUCH A DEGREE THEY FAIL TO STAY 4024 02:46:55,001 --> 02:46:58,000 ON TOP OF THE CURRENT AND 4025 02:46:58,001 --> 02:46:59,000 GROWING PROBLEMS IN OUR MARKETS. 4026 02:46:59,001 --> 02:47:03,000 I'LL HAVE MUCH MORE TO SAY ON 4027 02:47:03,001 --> 02:47:04,000 THIS IN A FUTURE SPEECH. 4028 02:47:04,001 --> 02:47:06,000 SECOND, THE LEGISLATION DOES NOT 4029 02:47:06,001 --> 02:47:07,000 GO FAR ENOUGH IN ADDRESSING THE FUNDAMENTAL PROBLEM OF TOO BIG 4030 02:47:07,001 --> 02:47:09,000 TO FAIL. 4031 02:47:09,001 --> 02:47:11,000 INSTEADF ERECTING ENDURING 4032 02:47:11,001 --> 02:47:12,000 STATUTORY WALL, AS WE DID IN THE 4033 02:47:12,001 --> 02:47:14,000 19 30'S, THE BILL INVESTS THE 4034 02:47:14,001 --> 02:47:16,000 SAME REGULATORS WHO FAILED TO 4035 02:47:16,001 --> 02:47:17,000 PREVENT THE FINANCIAL CRISIS 4036 02:47:17,001 --> 02:47:19,000 WITH ADDITIOL DISCRETION AND 4037 02:47:19,001 --> 02:47:22,000 RELIES UPON A RESOLUTION REGIME 4038 02:47:22,001 --> 02:47:24,000 TO SUCCESSFULLY UNWIND COMPLEX 4039 02:47:24,001 --> 02:47:28,000 AND INCONNECTED MEGABANKS 4040 02:47:28,001 --> 02:47:30,000 ENGAGED AROUND THE GLOBE. 4041 02:47:30,001 --> 02:47:32,000 AGAIN, ANYONE WHO'S HEARD MY 4042 02:47:32,001 --> 02:47:35,000 SPEECHES KNOWS I'M DISAPPOINTED 4043 02:47:35,001 --> 02:47:36,000 THAT KEY REFORM PROVISIONS ARE 4044 02:47:36,001 --> 02:47:37,000 SPOFF PROVISIONS AND WERE 4045 02:47:37,001 --> 02:47:41,000 SCALED BACK IN CONFERENCE. 4046 02:47:41,001 --> 02:47:45,000 THE BILL MAINLY PLACES FAITH IN 4047 02:47:45,001 --> 02:47:47,000 TRUST. 4048 02:47:47,001 --> 02:47:50,000 AFTER DECADES OF DEREGULATION 4049 02:47:50,001 --> 02:47:51,000 AND INDUSTRY SELF-REGULATION, IT 4050 02:47:51,001 --> 02:47:54,000 IS INCUMBENT UPON THE REGULATORS 4051 02:47:54,001 --> 02:47:56,000 NOW TO REASSERT THEMSELVES AND 4052 02:47:56,001 --> 02:47:57,000 ESTABLISH RULE MAKING AND 4053 02:47:57,001 --> 02:47:58,000 SUPERVISELY FRAMEWORKS THAT NOT 4054 02:47:58,001 --> 02:47:59,000 ONLY CORRECT THE GLARING 4055 02:47:59,001 --> 02:48:01,000 MISTAKES OF THE PAST -- I MEAN 4056 02:48:01,001 --> 02:48:03,000 THEY'RE GLARING MISTAKES OF THE 4057 02:48:03,001 --> 02:48:05,000 PAST -- BUT ALSO ANTICIPATE 4058 02:48:05,001 --> 02:48:08,000 FUTURE PROBLEMS, PARTICULARLY 4059 02:48:08,001 --> 02:48:10,000 RISKS TO FINANCIAL STABILITY. 4060 02:48:10,001 --> 02:48:11,000 UNFORTUNATELY, THE EARLY 4061 02:48:11,001 --> 02:48:14,000 INDICATIONS WE'RE SEEING OUT OF 4062 02:48:14,001 --> 02:48:16,000 THE G-20 AND THE SO-CALLED ABOUT 4063 02:48:16,001 --> 02:48:17,000 A SELL 3 DISCUSSIONS ARE NOT 4064 02:48:17,001 --> 02:48:19,000 ENCOURAGING. 4065 02:48:19,001 --> 02:48:22,000 THEY'RE VERY DISCOURAGING. 4066 02:48:22,001 --> 02:48:23,000 AS CRITICAL REFORMS ARE ALREADY 4067 02:48:23,001 --> 02:48:24,000 BEING WATERED DOWN AND PUSHED 4068 02:48:24,001 --> 02:48:26,000 BACK IN PART BECAUSE SOME 4069 02:48:26,001 --> 02:48:28,000 FOREIGN REGULATORS REFUSE TO 4070 02:48:28,001 --> 02:48:29,000 HEED THE RISK POSED BY THE 4071 02:48:29,001 --> 02:48:31,000 MEGABANKS. 4072 02:48:31,001 --> 02:48:32,000 THE LEGISLATION ALL PUTS IN 4073 02:48:32,001 --> 02:48:34,000 PLACE AUTHORITY TO DEAL WITH 4074 02:48:34,001 --> 02:48:37,000 THOSE INSTITUTIONS WHEN THEY 4075 02:48:37,001 --> 02:48:39,000 INEVITABLY GET INTO TROUBLE. 4076 02:48:39,001 --> 02:48:40,000 WHILE SUCH AUTHORITY IS 4077 02:48:40,001 --> 02:48:41,000 ABSOLUTELY NECESSARY, IT IS NOT 4078 02:48:41,001 --> 02:48:44,000 SUFFICIENT. 4079 02:48:44,001 --> 02:48:45,000 THAT IS BECAUSE NO MATTER HOW 4080 02:48:45,001 --> 02:48:47,000 WELL CONGRESS CRAFTS A 4081 02:48:47,001 --> 02:48:50,000 RESOLUTION MECHANISM, THERE CAN 4082 02:48:50,001 --> 02:48:53,000 NEVER BE AN ORDERLY WINDDOWN OF 4083 02:48:53,001 --> 02:48:54,000 A $2 TRILLION FINANCIAL 4084 02:48:54,001 --> 02:48:57,000 INSTITUTION THAT HAS HUNDREDS OF 4085 02:48:57,001 --> 02:48:58,000 BILLIONS OF DOLLARS IN 4086 02:48:58,001 --> 02:49:00,000 OFF-BALANCE SHEET ASSETS, 4087 02:49:00,001 --> 02:49:02,000 RELIERS HEAVILY ON WHOLESALE 4088 02:49:02,001 --> 02:49:03,000 FUND SOMETHING MORE THAN A 4089 02:49:03,001 --> 02:49:06,000 TOEHOLD IN MORE THAN 100 4090 02:49:06,001 --> 02:49:09,000 COUNTRIES AROUND THE WORLD. 4091 02:49:09,001 --> 02:49:11,000 AFRICA, SINCE FINANCIAL CRISES 4092 02:49:11,001 --> 02:49:12,000 ARE MACRO EVENTS THAT WILL 4093 02:49:12,001 --> 02:49:14,000 AFFECT MEGABANKS SIMULTANEOUSLY, 4094 02:49:14,001 --> 02:49:16,000 RESOLUTION OF THESE INSTITUTIONS 4095 02:49:16,001 --> 02:49:18,000 WILL BE ENORMOUSLY EXPENSIVE. 4096 02:49:18,001 --> 02:49:19,000 AND UNTIL THERE'S AN 4097 02:49:19,001 --> 02:49:20,000 INTERNATIONAL AGREEMENT ON 4098 02:49:20,001 --> 02:49:22,000 RESOLUTION AUTHORITY, IT IS 4099 02:49:22,001 --> 02:49:24,000 PROBABLY UNWORKABLE. 4100 02:49:24,001 --> 02:49:25,000 GIVEN THE HISTORY OF FINANCIAL 4101 02:49:25,001 --> 02:49:28,000 REGULATORY FAILURES AND THE 4102 02:49:28,001 --> 02:49:30,000 ENORMOUS BURDEN OF RULE MAKINGS 4103 02:49:30,001 --> 02:49:33,000 AND STUDIES, CONGRESS HAS A 4104 02:49:33,001 --> 02:49:34,000 RIEWCIAL -- A CRUCIAL, A CRUCIAL 4105 02:49:34,001 --> 02:49:36,000 OVERSIGHT RESPONSIBILITY ON THIS 4106 02:49:36,001 --> 02:49:37,000 LEGISLATION. 4107 02:49:37,001 --> 02:49:38,000 CONGRESS MUST FIRST ENSURE THAT 4108 02:49:38,001 --> 02:49:41,000 THE REGULATORS HAVE ENOUGH STAFF 4109 02:49:41,001 --> 02:49:43,000 AND RESOURCES AT THEIR DISPOSAL 4110 02:49:43,001 --> 02:49:44,000 TO FOLLOW THROUGH ON THEIR 4111 02:49:44,001 --> 02:49:48,000 SERIOUS OBLIGATIONS. 4112 02:49:48,001 --> 02:49:49,000 THERE ARE MANY,MEN, MANY, MANY. 4113 02:49:49,001 --> 02:49:51,000 CONGRESS MUST MONITOR THE 4114 02:49:51,001 --> 02:49:53,000 REGULATORY PHASE OF THIS BILL'S 4115 02:49:53,001 --> 02:49:54,000 IMPLEMENTATION CLOSELY TO ENSURE 4116 02:49:54,001 --> 02:49:57,000 THAT THE REGULATORS DON'T RETURN 4117 02:49:57,001 --> 02:49:59,000 TO BUSINESS AS USUAL WHEN THE 4118 02:49:59,001 --> 02:50:02,000 EXPERIENCE OF THE MOST RECENT 4119 02:50:02,001 --> 02:50:04,000 CRISES FADES INTO MEMORY. 4120 02:50:04,001 --> 02:50:06,000 HOW QUICK WE FORTH. 4121 02:50:06,001 --> 02:50:07,000 TIME AND TIME AGAIN ON THE FLOOR 4122 02:50:07,001 --> 02:50:09,000 I HEARD PEOPLE SPEAK AS IF THERE 4123 02:50:09,001 --> 02:50:11,000 WAS NO BIG FINANCIAL CRISIS. 4124 02:50:11,001 --> 02:50:12,000 I GOT A BANK IN MY HOMETOWN 4125 02:50:12,001 --> 02:50:13,000 THAT'S GOING TO HAVE A PROBLEM 4126 02:50:13,001 --> 02:50:15,000 WITH THIS LEGISLATION. 4127 02:50:15,001 --> 02:50:17,000 SO WE SHOULD LET ALL THE BANKS 4128 02:50:17,001 --> 02:50:19,000 FREE TO DO WHATEVER THEY WANT TO DO. 4129 02:50:19,001 --> 02:50:21,000 I MEAN, WE HAD A CRISIS HERE 4130 02:50:21,001 --> 02:50:22,000 THAT PRACTICALLY DESTROYED THE 4131 02:50:22,001 --> 02:50:24,000 COUNTRY, PRACTICALLY DESTROYED 4132 02:50:24,001 --> 02:50:26,000 THE WORLD, AND PEOPLE ARE 4133 02:50:26,001 --> 02:50:30,000 BRINGING UP ANECDOTAL EVIDENCE 4134 02:50:30,001 --> 02:50:31,000 TO GIV THESE BANKS MORE 4135 02:50:31,001 --> 02:50:34,000 RESPONSIBILITY AND NOTO AFTER 4136 02:50:34,001 --> 02:50:36,000 THE ROOT CAUSE OF THIS THING. 4137 02:50:36,001 --> 02:50:37,000 FOR EXAMPLE, IN ADDITION TO 4138 02:50:37,001 --> 02:50:38,000 GRANTING GREAT DISCRETION TO 4139 02:50:38,001 --> 02:50:41,000 REGULATORS ON HOW THEY INTERPRET 4140 02:50:41,001 --> 02:50:43,000 THE BAN ON PROPRIETARY TRADING 4141 02:50:43,001 --> 02:50:46,000 OF BANKS, THE SCALED-BACK 4142 02:50:46,001 --> 02:50:47,000 VOLCKER RULE CONTAINS A LOOPHOLE 4143 02:50:47,001 --> 02:50:49,000 THAT ALLOWS BANKS TO OWN, 4144 02:50:49,001 --> 02:50:50,000 CONTROL, MANAGE HEDGE FUNDS AND 4145 02:50:50,001 --> 02:50:51,000 PRIVATE EQUITY FUNDS UNDER 4146 02:50:51,001 --> 02:50:53,000 CERTAIN CONDITIONS. 4147 02:50:53,001 --> 02:50:55,000 MOST NOTEABLY, IT INCLUDES A DE 4148 02:50:55,001 --> 02:50:58,000 MINIMIS EXCEPTION THAT PERMITS 4149 02:50:58,001 --> 02:51:00,000 BANKS TO INVEST UP TO 3% OF 4150 02:51:00,001 --> 02:51:01,000 TIER-ONE CAPITAL IN HEDGE FUNDS 4151 02:51:01,001 --> 02:51:03,000 AND PRIVATE EQUITY FUNDS SO LONG 4152 02:51:03,001 --> 02:51:05,000 AS THEIR INVESTMENTS DON'T 4153 02:51:05,001 --> 02:51:06,000 CONSTITUTE MORE THAN 3% 4154 02:51:06,001 --> 02:51:08,000 OWNERSHIP IN INDIVIDUAL FUNDS. 4155 02:51:08,001 --> 02:51:10,000 LET'S TALK ABOUT THAT FOR A MINUTE. 4156 02:51:10,001 --> 02:51:14,000 THE IMPACT OF A SUPPOSEDLY SMALL 4157 02:51:14,001 --> 02:51:15,000 3% DE MINIMIS EXCEPTION HAS THE 4158 02:51:15,001 --> 02:51:19,000 POTENTIAL TO BE MASSIVE. 4159 02:51:19,001 --> 02:51:21,000 FOR EXAMPLE, A $2 TRILLION BANK 4160 02:51:21,001 --> 02:51:23,000 THAT HAS A $14 U7B BILLION IN 4161 02:51:23,001 --> 02:51:25,000 TIER-ONE CAPITAL WOULD BE ABLE 4162 02:51:25,001 --> 02:51:27,000 TO INVEST $3 BILLION INTO HEDGE FUNDS. 4163 02:51:27,001 --> 02:51:29,000 SINCE THAT $3 BILLION BET COULD 4164 02:51:29,001 --> 02:51:32,000 ONLY CONSTITUTE 3% OF OWNERSHIP, 4165 02:51:32,001 --> 02:51:35,000 IT WOULD NEED TO BE INALONG SIDE 4166 02:51:35,001 --> 02:51:37,000 OF THESE $97 BILLION OF FUNDS 4167 02:51:37,001 --> 02:51:39,000 FROFUNDSFROM OUTSIDE INVESTORS. 4168 02:51:39,001 --> 02:51:41,000 THE BANK WOULD BE ABLE TO MANAGE 4169 02:51:41,001 --> 02:51:46,000 $100 BILLION IN HEDGE FUND 4170 02:51:46,001 --> 02:51:47,000 ASSETS, A MASSIVE AMOUNT. 4171 02:51:47,001 --> 02:51:49,000 WHAT'S MOSHINGS THE $100 BILLION 4172 02:51:49,001 --> 02:51:50,000 IN ASSETS COULD BE LEVERAGED 4173 02:51:50,001 --> 02:51:52,000 SEVERAL TIMES OVER THROUGH THE 4174 02:51:52,001 --> 02:51:54,000 USE OF BORROWED FUNDS AND 4175 02:51:54,001 --> 02:51:56,000 DERIVATIVES AND OVERALL 4176 02:51:56,001 --> 02:51:59,000 EXPOSURES THAT COULD EXCEED $1 TRILLION. 4177 02:51:59,001 --> 02:52:00,000 GIVEN THE AMBIGUITY OF THE 4178 02:52:00,001 --> 02:52:02,000 LEGISLATIVE LANGUAGE, SOME 4179 02:52:02,001 --> 02:52:04,000 COMMENTATORS HAVE INDICATED THE 4180 02:52:04,001 --> 02:52:06,000 MEGABANKS COULD PROVIDE PRIME 4181 02:52:06,001 --> 02:52:08,000 BROKAGE LOANS TO HEDGE FUNDS 4182 02:52:08,001 --> 02:52:10,000 THEY OWN AND RUN. 4183 02:52:10,001 --> 02:52:14,000 FORTUNATELY, THE BILL DOES PLACE 4184 02:52:14,001 --> 02:52:15,000 COSTS ON BANKS' DE MINIMIS 4185 02:52:15,001 --> 02:52:18,000 INVESTMENTS. SPECIFICALLY, THE LEGISLATION 4186 02:52:18,001 --> 02:52:19,000 REQUIRES 100% CAPITAL CHARGE ON 4187 02:52:19,001 --> 02:52:20,000 THESE PROPRIETARY INVESTMENTS 4188 02:52:20,001 --> 02:52:22,000 MAKING THEM EXPENSIVE FOR BANKS 4189 02:52:22,001 --> 02:52:24,000 TO HOLD. 4190 02:52:24,001 --> 02:52:25,000 WHILE THIS MAY BE A HELPFUL 4191 02:52:25,001 --> 02:52:27,000 DETERRENT, I AM CONCERNED IT 4192 02:52:27,001 --> 02:52:29,000 WILL NOT BE ENOUGH OF, ONE, 4193 02:52:29,001 --> 02:52:30,000 PARTICULARLY WHEN CONSIDERED HOW 4194 02:52:30,001 --> 02:52:34,000 RISKY AN ACTIVITY IT IS TO 4195 02:52:34,001 --> 02:52:37,000 ENGAGE IN HEDGE FUND AND PRIVATE EQUITY FUNDS. 4196 02:52:37,001 --> 02:52:39,000 THESE ARE RISKY INVESTMENTS IN 4197 02:52:39,001 --> 02:52:41,000 BANKS THAT HAVE MAJOR INSURANCE 4198 02:52:41,001 --> 02:52:43,000 THROUGH THE FDIC BECAUSE THEY 4199 02:52:43,001 --> 02:52:46,000 CAN ALLOW TO INVEST IN THESE 4200 02:52:46,001 --> 02:52:47,000 BANKS EVEN THOUGH THEY'RE 4201 02:52:47,001 --> 02:52:49,000 FDIC-INSURED. 4202 02:52:49,001 --> 02:52:50,000 THE OVERREACHING PROBLEM IS WHAT 4203 02:52:50,001 --> 02:52:54,000 BANKS WILL CONTINUE TO BE ABLE 4204 02:52:54,001 --> 02:52:56,000 TO OFFER AND RUN, IMPARTIALLY 4205 02:52:56,001 --> 02:52:58,000 OWN RISKY INVESTMENT FUNDS. 4206 02:52:58,001 --> 02:53:00,000 EVEN THOUGH THE SCALED-BACK 4207 02:53:00,001 --> 02:53:01,000 VOLCKER RULE INDICATES A 4208 02:53:01,001 --> 02:53:02,000 NO-BAIL-OUT PROVISION, I HAVE 4209 02:53:02,001 --> 02:53:04,000 CONCERNS ABOUT THE CREDIBILITY 4210 02:53:04,001 --> 02:53:06,000 THAT HAVE. 4211 02:53:06,001 --> 02:53:08,000 UNDER ANY CIRCUMSTANCE, THE 4212 02:53:08,001 --> 02:53:10,000 FAILURE AFTER MASSIVE HEDGE FUND 4213 02:53:10,001 --> 02:53:12,000 RUN BY A MEGABANK WOULD POSE 4214 02:53:12,001 --> 02:53:13,000 SERIOUS REPUTATIONAL AND 4215 02:53:13,001 --> 02:53:14,000 FINANCIAL RISKS TO THAT 4216 02:53:14,001 --> 02:53:16,000 INSTITUTION. 4217 02:53:16,001 --> 02:53:17,000 JUST LOOK AT WHAT HAPPENED WHEN 4218 02:53:17,001 --> 02:53:21,000 THE STRUCTURED INVESTMENT 4219 02:53:21,001 --> 02:53:23,000 VEHICLES OR S.I.V.'S OF CITIBANK 4220 02:53:23,001 --> 02:53:24,000 AND OTHER BANKS BEGAN TO FALTER. 4221 02:53:24,001 --> 02:53:27,000 BECAUSE THE REPUTATIONAL 4222 02:53:27,001 --> 02:53:30,000 CONSEQUENCES OF LIQUIDATING 4223 02:53:30,001 --> 02:53:31,000 THESE FUNDS AND ALLOWING THEM TO 4224 02:53:31,001 --> 02:53:36,000 DWOALT, THEY WERE BAILED OUT BY 4225 02:53:36,001 --> 02:53:41,000 THE MEGABANKS THAT SPAWNED THEM 4226 02:53:41,001 --> 02:53:42,000 EVEN THOUGH THE S.I. v. WERE 4227 02:53:42,001 --> 02:53:43,000 -- 4228 02:53:43,001 --> 02:53:46,000 THE STRENGTH OF THE CORE PART OF 4229 02:53:46,001 --> 02:53:48,000 THE VOLCKER RULE WILL DEPEND 4230 02:53:48,001 --> 02:53:49,000 GREATLY ON THE INTERPRETATION OF 4231 02:53:49,001 --> 02:53:51,000 THE RERLGTS. 4232 02:53:51,001 --> 02:53:53,000 THE REGULATORS ARE ALLOWED TO 4233 02:53:53,001 --> 02:53:55,000 MODIFY THIS RULE. 4234 02:53:55,001 --> 02:53:56,000 THEY WILL BE THE ARBITER OF 4235 02:53:56,001 --> 02:54:00,000 WHETHER BROAD STATUTORY 4236 02:54:00,001 --> 02:54:01,000 EXCEPTIONS FOR MARKET MAKING OR 4237 02:54:01,001 --> 02:54:02,000 RISK-MITIGATING HEDGING OR 4238 02:54:02,001 --> 02:54:04,000 PURCHASES OR SALES OF SECURITIES 4239 02:54:04,001 --> 02:54:07,000 ON BEHALF 4240 02:54:07,001 --> 02:54:08,000 ALLOWED TO SWALLOW THE PUNITIVE 4241 02:54:08,001 --> 02:54:09,000 PROLIX. 4242 02:54:09,001 --> 02:54:12,000 I THEREFORE URGE THE REGULATORS 4243 02:54:12,001 --> 02:54:18,000 TO CONSTRUE NARROWLY THESE 4244 02:54:18,001 --> 02:54:22,000 ACTIVITIEACTIVITIES THAACTIVITIES THAACTIVITIES THAT CONSTITUTE THAT 4245 02:54:22,001 --> 02:54:25,000 THE RULE HAS TEETH IN T IT WOULD 4246 02:54:25,001 --> 02:54:26,000 PROHIBIT BANKS AND SWAP DEALERS 4247 02:54:26,001 --> 02:54:28,000 FROM RECEIVING ASSISTANCE FROM 4248 02:54:28,001 --> 02:54:30,000 THE FEDERAL RESERVE OR FDIC. 4249 02:54:30,001 --> 02:54:32,000 BY SLINGS FORCING MEGABANKS TO 4250 02:54:32,001 --> 02:54:33,000 SPIN OFF THEIR SWAP DEALERS INTO 4251 02:54:33,001 --> 02:54:34,000 SEPARATE COMPANIES, THIS SECTION 4252 02:54:34,001 --> 02:54:37,000 WOULD HAVE HELPED RESTORE THE 4253 02:54:37,001 --> 02:54:38,000 WALL BETWEEN THE 4254 02:54:38,001 --> 02:54:40,000 GOVERNMENT-GUARANTEED PART OF 4255 02:54:40,001 --> 02:54:41,000 THE FINANCIAL SYSTEM AND THOSE 4256 02:54:41,001 --> 02:54:43,000 FINANCIAL ENTITIES THAT REMAIN 4257 02:54:43,001 --> 02:54:45,000 FREE TO TAKE ON GREATER RISK. 4258 02:54:45,001 --> 02:54:46,000 AS I STATED TIME AND TIME AGAIN, 4259 02:54:46,001 --> 02:54:48,000 ONE OF THE BASIC CONSIDERATIONS 4260 02:54:48,001 --> 02:54:50,000 THAT I THOUGHT WAS IMPORTANT IN 4261 02:54:50,001 --> 02:54:52,000 THE BILL T WOULD ALSO FORCE 4262 02:54:52,001 --> 02:54:53,000 DERIVATIVES DEALERS TO BE 4263 02:54:53,001 --> 02:54:54,000 ADEQUATELY CAPITALIZED. 4264 02:54:54,001 --> 02:54:56,000 WHILE THE FINAL BILL INCLUDES 4265 02:54:56,001 --> 02:54:57,000 THE LINCOLN PROVISION, IT LIMITS 4266 02:54:57,001 --> 02:54:59,000 ITS APPLICATION TO DERIVATIVES 4267 02:54:59,001 --> 02:55:02,000 THAT REFERENCE ASSETS THAT ARE 4268 02:55:02,001 --> 02:55:04,000 PERMISSIBLE TO BANKS TO HOLD. 4269 02:55:04,001 --> 02:55:05,000 SINCE THAT EXCEPTION COVERS 4270 02:55:05,001 --> 02:55:07,000 INTEREST RATE, FOREIGN EXCHANGE 4271 02:55:07,001 --> 02:55:09,000 AND OTHER SWAPS, IT ULTIMATELY 4272 02:55:09,001 --> 02:55:10,000 EXCEPTS CLOSE TO 90% OF THE 4273 02:55:10,001 --> 02:55:12,000 OVER-THE-COUNTER DERIVATIVES 4274 02:55:12,001 --> 02:55:15,000 MARKET. 4275 02:55:15,001 --> 02:55:16,000 REGULATORS MUST THEREFORE REDUCE 4276 02:55:16,001 --> 02:55:18,000 COUNTERPARTY EXPOSURES BY 4277 02:55:18,001 --> 02:55:19,000 REQUIRING THE VAST MAJORITY OF 4278 02:55:19,001 --> 02:55:21,000 DERIVATIVES CONTRACTS TO BE 4279 02:55:21,001 --> 02:55:23,000 CLEARED AND CALIBRATED CAREFULLY 4280 02:55:23,001 --> 02:55:25,000 THE AMOUNT OF CAPITAL THAT BANK 4281 02:55:25,001 --> 02:55:28,000 DERIVATIVE DEALERS MUST MAINTAIN. 4282 02:55:28,001 --> 02:55:30,000 ONLY THEN -- ONLY THEN CAN WE BE 4283 02:55:30,001 --> 02:55:32,000 SURE WE NEVER AGAIN FACE A 4284 02:55:32,001 --> 02:55:35,000 MELTDOWN CAUSED BY EXCESSIVELY 4285 02:55:35,001 --> 02:55:36,000 LEVERAGED DERIVATIVE EXPOSURE 4286 02:55:36,001 --> 02:55:38,000 THAT MO REGULATOR HELPS TO KEEP 4287 02:55:38,001 --> 02:55:40,000 IN CHEFNLG THE FINANCIAL REFORM 4288 02:55:40,001 --> 02:55:41,000 BILL PLACES ENORMOUS 4289 02:55:41,001 --> 02:55:44,000 RESPONSIBILITY AND DISCRETION IN 4290 02:55:44,001 --> 02:55:45,000 TH HANDS OF REGULATORS. 4291 02:55:45,001 --> 02:55:47,000 ITS ULTIMATE SUCCESS OR FAILURE 4292 02:55:47,001 --> 02:55:49,000 WILL DEPEND ON THE ACTIONS AND 4293 02:55:49,001 --> 02:55:51,000 THE FOLLOW-THROUGH OF THOSE 4294 02:55:51,001 --> 02:55:55,000 REGULATORS FOR MANY YEARS TO COME. 4295 02:55:55,001 --> 02:55:57,000 REMEMBER ONE OF MY MAIN CONCERNS 4296 02:55:57,001 --> 02:55:58,000 IS THAT IF WE ELECT ANOTHER 4297 02:55:58,001 --> 02:55:59,000 PRESIDENT THAT BELIEVES WE 4298 02:55:59,001 --> 02:56:00,000 SHOULD NOT HAVE REGULATORS OR 4299 02:56:00,001 --> 02:56:02,000 REGULATION, THEN THEY WOULD HAVE 4300 02:56:02,001 --> 02:56:05,000 THE ABILITY TO GO BACK AND DO 4301 02:56:05,001 --> 02:56:06,000 EXACTLY WHAT THEY DID AND IN MY 4302 02:56:06,001 --> 02:56:08,000 OPINION CAUSE THE MELTDOWN. 4303 02:56:08,001 --> 02:56:10,000 IT IS ESTIMATED THAT VARIOUS 4304 02:56:10,001 --> 02:56:14,000 FEDERAL AGENCIES WILL BE CHARGED 4305 02:56:14,001 --> 02:56:15,000 WITH WRITING RULE MAKINGS AND 4306 02:56:15,001 --> 02:56:16,000 DOZENS OF STUDIES. 4307 02:56:16,001 --> 02:56:18,000 MANY OF THE SAME REGULATORS WHO 4308 02:56:18,001 --> 02:56:20,000 FAILED IN THE RUN-UP TO THE LAST 4309 02:56:20,001 --> 02:56:21,000 CRIS WILL BE GIVEN THE TASK OF 4310 02:56:21,001 --> 02:56:23,000 SAFEGUARDING OUR FINANCIAL STABILITY. 4311 02:56:23,001 --> 02:56:24,000 LIKE MANY OTHERS, I AM CONCERNED 4312 02:56:24,001 --> 02:56:27,000 WHETHER THEY HAVE THE CAPACITY 4313 02:56:27,001 --> 02:56:29,000 AND THE WHEREWITHAL TO SUCCEED. 4314 02:56:29,001 --> 02:56:31,000 I REPEAT AGAIN, CONGRESS HAS AN 4315 02:56:31,001 --> 02:56:32,000 IMPORTANT ROLE TO PLAY IN 4316 02:56:32,001 --> 02:56:36,000 OVERSEEING THE ENORMOUS 4317 02:56:36,001 --> 02:56:37,000 REGULATORY PROCESS THAT WILL 4318 02:56:37,001 --> 02:56:38,000 ENSUE FOLLOWING THE BILL'S 4319 02:56:38,001 --> 02:56:40,000 ENACTMENT. 4320 02:56:40,001 --> 02:56:42,000 THE AMERICAN PEOPLE FOR THAT 4321 02:56:42,001 --> 02:56:43,000 MATTER MUST STAY FOCUSED ON 4322 02:56:43,001 --> 02:56:44,000 THESESSUES. 4323 02:56:44,001 --> 02:56:46,000 JUST HELP TO ENSURE THAT 4324 02:56:46,001 --> 02:56:48,000 CONGRESS INDEED WILL FULFILL ITS 4325 02:56:48,001 --> 02:56:49,000 OVERSIGHT DUTY AND ITS DUTY TO 4326 02:56:49,001 --> 02:56:51,000 INTERVENE IF THE REGULATORS 4327 02:56:51,001 --> 02:56:54,000 FAIL. 4328 02:56:54,001 --> 02:56:56,000 LIKEWISE, THOUGH I'LL BE LEAVING 4329 02:56:56,001 --> 02:56:57,000 THE SENATE IN NOVEMBER, I WILL 4330 02:56:57,001 --> 02:56:59,000 BE WAIFING CLOSELY TO SEE HOW 4331 02:56:59,001 --> 02:57:00,000 THE REGULATORS FOLLOW THROUGH ON 4332 02:57:00,001 --> 02:57:01,000 THE ENORMOUS RESPONSIBILITY THEY 4333 02:57:01,001 --> 02:57:03,000 ARE BEING HANDED. 4334 02:57:03,001 --> 02:57:05,000 LET US NOT FORGET WHY REFORMS 4335 02:57:05,001 --> 02:57:08,000 SO NECESSARY AND IMPORTANT. 4336 02:57:08,001 --> 02:57:10,000 AFTER YEARS OF WALL STREET 4337 02:57:10,001 --> 02:57:12,000 MALFEASANCE AND THE SYSTEMIC 4338 02:57:12,001 --> 02:57:14,000 DISMANTLING OF OUR REGULATORY 4339 02:57:14,001 --> 02:57:17,000 STRUCTURE, OUR FINANCIAL SYSTEM 4340 02:57:17,001 --> 02:57:19,000 WENT INTO CARDIAC ARREST AND OUR 4341 02:57:19,001 --> 02:57:21,000 ECONOMY NEARLY FELL INTO THE 4342 02:57:21,001 --> 02:57:24,000 ABYSS. 4343 02:57:24,001 --> 02:57:25,000 WALL STREET, WHICH HAD GROWN OUT 4344 02:57:25,001 --> 02:57:29,000 OF CONTROL ON LEVERAGE AND 4345 02:57:29,001 --> 02:57:30,000 FINANCIAL GIMMICKRY, BLEW UP. 4346 02:57:30,001 --> 02:57:32,000 MORE THAN 8 MILLION JOBS WERE WIPED OUT. 4347 02:57:32,001 --> 02:57:33,000 MILLIONS MORSE HAVE LOST THEIR 4348 02:57:33,001 --> 02:57:35,000 HOMES. 4349 02:57:35,001 --> 02:57:36,000 WE SPENT TRILLIONS OF DOLLARS OF 4350 02:57:36,001 --> 02:57:38,000 MONETARY EASING AND EMERGENCY 4351 02:57:38,001 --> 02:57:40,000 MEASURES TO AVERT THE WHOLESALE 4352 02:57:40,001 --> 02:57:42,000 FAILURE OF MANY OF OUR MEGABANKS. 4353 02:57:42,001 --> 02:57:44,000 NOT SURPRISINGLY, WE CONTINUE TO 4354 02:57:44,001 --> 02:57:45,000 FEEL THE AFTERSHOCKS OF THE 4355 02:57:45,001 --> 02:57:47,000 WORST FINANCIAL CRISIS SINCE THE 4356 02:57:47,001 --> 02:57:51,000 GREAT DEPRESSION. 4357 02:57:51,001 --> 02:57:53,000 EVERY SINGLE THING YOU LOOK AT, ALMOST WITHOUT EXCEPTION, WHEN 4358 02:57:53,001 --> 02:57:55,000 YOU READ OUR NEWSPAPERS IS 4359 02:57:55,001 --> 02:57:57,000 RELATED TO OUR PRESENT ECONOMIC 4360 02:57:57,001 --> 02:58:00,000 SITUATION. 4361 02:58:00,001 --> 02:58:02,000 CAUSED BY LACK OF REGULATORY 4362 02:58:02,001 --> 02:58:05,000 ACTION ON WALL STREET. 4363 02:58:05,001 --> 02:58:07,000 THE BANKS ARE NOT LENDING -- IT 4364 02:58:07,001 --> 02:58:08,000 WAS IN THE PAPER TODAY -- 4365 02:58:08,001 --> 02:58:10,000 CORPORATIONS ARE NOT LENDING, 4366 02:58:10,001 --> 02:58:14,000 FED CHAIRMAN BERNANKE SAID JUST 4367 02:58:14,001 --> 02:58:15,000 DAYS AGO TO URGE BANKS TO DO 4368 02:58:15,001 --> 02:58:17,000 MORE FOR SMALL BUSINESSES. 4369 02:58:17,001 --> 02:58:19,000 CUSTOMERS AND COMPANIES ALIKE 4370 02:58:19,001 --> 02:58:20,000 REMAIN SHAKEN AND DESPITE 4371 02:58:20,001 --> 02:58:22,000 STIMULUS MEASURES, THE ECONOMIC 4372 02:58:22,001 --> 02:58:24,000 RECOVERY HAS BEEN SLOW AND TENTATIVE. 4373 02:58:24,001 --> 02:58:26,000 MANY OPPONENTS OF WALL STREET 4374 02:58:26,001 --> 02:58:28,000 REFORM WOULD LIKE TO MAKE THE DUBIOUS CLAIM THAT THE RECOVERY 4375 02:58:28,001 --> 02:58:29,000 IS BEING HELD BACK BY 4376 02:58:29,001 --> 02:58:31,000 UNCERTAINTY ABOUT FUTURE 4377 02:58:31,001 --> 02:58:32,000 REGULATION AND TAXES. 4378 02:58:32,001 --> 02:58:38,000 CAN YOU BELIEVE THAT? 4379 02:58:38,001 --> 02:58:41,000 CAN YOU BELIEVE THAT? 4380 02:58:41,001 --> 02:58:42,000 IN REALITY, IT'S BEING HELD BACK 4381 02:58:42,001 --> 02:58:44,000 BY THE FINANCIAL SHOCK AND THE 4382 02:58:44,001 --> 02:58:46,000 FACT THAT WE'RE STILL IN A 4383 02:58:46,001 --> 02:58:48,000 PERIOD OF FINANCIAL INSTABILITY 4384 02:58:48,001 --> 02:58:51,000 AND UNDERGOING AN EXCRUCIATING 4385 02:58:51,001 --> 02:58:52,000 PROCESS OF DELEVERAGING. 4386 02:58:52,001 --> 02:58:55,000 IT'S ALSO BEING CAUSED BY THE 4387 02:58:55,001 --> 02:58:57,000 FACT THAT AMERICANS ARE LOSING 4388 02:58:57,001 --> 02:58:58,000 FAITH IN THE CREDIBILITY OF OUR 4389 02:58:58,001 --> 02:59:00,000 MARKETS, AND WHO WOULDN'T AFTER 4390 02:59:00,001 --> 02:59:02,000 WHAT'S HAPPENED? 4391 02:59:02,001 --> 02:59:03,000 EVEN NO NOW IT'S UNCLEAR WHETHER 4392 02:59:03,001 --> 02:59:05,000 A EUROPEAN BANKING CRISIS BASED 4393 02:59:05,001 --> 02:59:06,000 ON THEIR HOLDINGS OF SOVEREIGN 4394 02:59:06,001 --> 02:59:09,000 DEBT WILL CONTINUE TO IMPEDE THE RECOVE. 4395 02:59:09,001 --> 02:59:13,000 AND I THINK IT'S BEEN AN 4396 02:59:13,001 --> 02:59:15,000 IMPORTANT FACTOR IN OUR PRESENT 4397 02:59:15,001 --> 02:59:17,000 PICK UP -- HOPEFULLY PICKUP, AND 4398 02:59:17,001 --> 02:59:18,000 NOT A DOUBLE DIP. 4399 02:59:18,001 --> 02:59:20,000 IT IS THEREFORE IMPERATIVE THAT 4400 02:59:20,001 --> 02:59:21,000 WE BUILD A FINANCIAL SYSTEM ON A 4401 02:59:21,001 --> 02:59:23,000 FIRMER FOUNDATION. 4402 02:59:23,001 --> 02:59:25,000 THE AMERICAN ECONOMY CANNOT 4403 02:59:25,001 --> 02:59:28,000 SUCCEED -- CANNOT SUCCEED -- 4404 02:59:28,001 --> 02:59:29,000 UNLESS WE RESTORE AND MAINTAIN 4405 02:59:29,001 --> 02:59:31,000 FINANCIAL STABILITY, NOT ONLY 4406 02:59:31,001 --> 02:59:32,000 RESTORE AND MAINTAIN FINANCIAL 4407 02:59:32,001 --> 02:59:34,000 STABILITY BUT MAINTAIN THE 4408 02:59:34,001 --> 02:59:38,000 CREDIBILITY OF OUR FINANCIAL SYSTEM. 4409 02:59:38,001 --> 02:59:40,000 WE SIMPLY C 4410 02:59:40,001 --> 02:59:44,000 -- WE CANNOT AFFORD ANOTHER 4411 02:59:44,001 --> 02:59:45,000 FINANCIAL CRIS IN THE AMERICAN ECONOMY. 4412 02:59:45,001 --> 02:59:47,000 GETTING FINANCIAL REGULATION 4413 02:59:47,001 --> 02:59:51,000 RIGHT AND MAINTAINING IT FOR 4414 02:59:51,001 --> 02:59:52,000 YEARS TO COME SHOULD BE ONE OF 4415 02:59:52,001 --> 02:59:54,000 THIS NATION'S HIGHEST PRIORITIES 4416 02:59:54,001 --> 02:59:55,000 BECAUSE THE PRICE OF FAILURE IS 4417 02:59:55,001 --> 02:59:57,000 FAR TOO HIGH. 4418 02:59:57,001 --> 02:59:59,000 MADAM PRES 4419 02:59:59,001 --> 03:00:02,000 A QUORUM. 4420 03:00:02,001 --> 03:00:04,000 MR. DODD: MADAM PRESIDENT? 4421 03:00:04,001 --> 03:00:06,000 LET ME -- THE PRESIDING OFFICER: THE 4422 03:00:06,001 --> 03:00:07,000 SENATOR FROM CONNECTICUT. 4423 03:00:07,001 --> 03:00:09,000 MR. DODD: I WANT TO BRIEFLY 4424 03:00:09,001 --> 03:00:11,000 THANK MY COLLEAGUE FROM DELAWARE. 4425 03:00:11,001 --> 03:00:12,000 HE HIGHLIGHTS THE DIFFICULTY 4426 03:00:12,001 --> 03:00:13,000 OBVIOUSLY IN PASSING 4427 03:00:13,001 --> 03:00:14,000 LEGISLATION. 4428 03:00:14,001 --> 03:00:15,000 THERE ARE THOSE WHO THINK THIS 4429 03:00:15,001 --> 03:00:17,000 BILL GOES TOO FAR, THOSE WHO 4430 03:00:17,001 --> 03:00:20,000 THINK IT DOESN'T GO FAR ENOUGH. 4431 03:00:20,001 --> 03:00:22,000 YOU DON'T WRITE A BILL ON YOUR OWN. 4432 03:00:22,001 --> 03:00:25,000 THERE ARE 100 OF US IN THIS 4433 03:00:25,001 --> 03:00:27,000 CHAMBER, 435 IN THE OTHER. 4434 03:00:27,001 --> 03:00:28,000 THERE ARE STAKEHOLDERS, AN 4435 03:00:28,001 --> 03:00:31,000 ADMINISTRATION, ALL SORTS OF 4436 03:00:31,001 --> 03:00:33,000 PEOPLE YOU DEAL WITH ON THESE MATTERS. 4437 03:00:33,001 --> 03:00:35,000 WHAT YOU TRY AND DO IS THEN 4438 03:00:35,001 --> 03:00:36,000 FASHION TOGETHER AGAIN THE BEST 4439 03:00:36,001 --> 03:00:38,000 PROPOSAL YOU CAN THAT MOVES US 4440 03:00:38,001 --> 03:00:40,000 FORWARD AND ADDRESSES THE 4441 03:00:40,001 --> 03:00:41,000 UNDERLYING CAUSES, AS WE'VE 4442 03:00:41,001 --> 03:00:44,000 TRIED TO WITH THIS BL. 4443 03:00:44,001 --> 03:00:45,000 BUT I APPRECIATE HIS POINTS 4444 03:00:45,001 --> 03:00:46,000 RAISED DURING THE DEBATE AND 4445 03:00:46,001 --> 03:00:49,000 DISCUSSION AND TRIED TO 4446 03:00:49,001 --> 03:00:51,000 ACCOMMODATE WHERE WE COULD IN 4447 03:00:51,001 --> 03:00:52,000 FASHIONING A PIECE OF 4448 03:00:52,001 --> 03:00:54,000 LEGISLATION. 4449 03:00:54,001 --> 03:00:55,000 IT'S ALWAYS A DIFFICULT PROCESS. 4450 03:00:55,001 --> 03:00:57,000 THERE'S -- YOU DON'T GET TO 4451 03:00:57,001 --> 03:00:59,000 WRITE YOUR OWN BILLS HERE. 4452 03:00:59,001 --> 03:01:03,000 YOU CAN WRITE YOUR OWN BILLS AND INTRODUCE THEM. 4453 03:01:03,001 --> 03:01:04,000 BUT ULTIMATELY TO BECOME LAW, IT 4454 03:01:04,001 --> 03:01:08,000 REQUIRES COOPERATION. 4455 03:01:08,001 --> 03:01:09,000 WE HAVE THAT COOPERATION, I 4456 03:01:09,001 --> 03:01:11,000 APPRECIATE VERY MUCH AND 4457 03:01:11,001 --> 03:01:17,000 APPRECIATE HIS INVOLVEMENT. 4458 03:01:17,001 --> 03:01:20,000 MR. KAUFMAN: I TEACH A COURSE 4459 03:01:20,001 --> 03:01:23,000 IN THE CONGRESS. 4460 03:01:23,001 --> 03:01:27,000 I SAY THIS IN ALL SINCERITY, 4461 03:01:27,001 --> 03:01:29,000 HUDINI COULD HAVE GOTTEN THROUGH THIS PROCESS. 4462 03:01:29,001 --> 03:01:34,000 WHEN YOU LOOK AT IT, HUGH DUE NI 4463 03:01:34,001 --> 03:01:35,000 COULDN'T THE HAVE GOTTEN -- 4464 03:01:35,001 --> 03:01:37,000 HUDINI COULDN'T HAVE GOTTEN 4465 03:01:37,001 --> 03:01:39,000 THROUGH THIS PROCESS WITH A BILL. 4466 03:01:39,001 --> 03:01:42,000 I TRY TO SPEAK HIGHLY OF MY 4467 03:01:42,001 --> 03:01:43,000 COLLEAGUES BECAUSE I REALLY DO 4468 03:01:43,001 --> 03:01:44,000 LIKE EVERY ONE OF MY COLLEAGUES 4469 03:01:44,001 --> 03:01:46,000 ON THE OTHER SIDE. 4470 03:01:46,001 --> 03:01:49,000 THAT IS NOT HYPERBOLE. 4471 03:01:49,001 --> 03:01:50,000 WHEN YOU START OUT WITH 41 4472 03:01:50,001 --> 03:01:53,000 SENATORS BOUND AND DETERMINED TO 4473 03:01:53,001 --> 03:01:55,000 SLOW DOWN, DELAY, STOP AND 4474 03:01:55,001 --> 03:01:58,000 BLOCK, IT MAKES THE JOB THAT 4475 03:01:58,001 --> 03:01:59,000 YOU'VE DONE EVEN MORE 4476 03:01:59,001 --> 03:02:00,000 INCREDIBLE. 4477 03:02:00,001 --> 03:02:02,000 BECAUSE I THINK, AS YOU SAID, IT 4478 03:02:02,001 --> 03:02:03,000 ISN'T JUST GETTING -- AND THEN 4479 03:02:03,001 --> 03:02:04,000 YOU'VE GOT TO GET 60 VOTES ON 4480 03:02:04,001 --> 03:02:06,000 ANYTHING OF SUBSTANCE. 4481 03:02:06,001 --> 03:02:07,000 THEN YOU'VE GOT TO GO OVER TO 4482 03:02:07,001 --> 03:02:09,000 THE HOUSE SIDE. 4483 03:02:09,001 --> 03:02:11,000 AND GOD BLESS OUR FRIENDS ON THE HOUSE SIDE. 4484 03:02:11,001 --> 03:02:13,000 I MEAN, HOW THEY -- WHEN I TALK 4485 03:02:13,001 --> 03:02:15,000 TO THEM, THEY JUST LOOK OVER 4486 03:02:15,001 --> 03:02:17,000 HERE AND THEY CAN'T BELIEVE WE 4487 03:02:17,001 --> 03:02:21,000 EVER GET ANYTHING DONE. 4488 03:02:21,001 --> 03:02:23,000 I THINK THAT GETTING THIS DONE, 4489 03:02:23,001 --> 03:02:25,000 GETTING THIS THROUGH THE SENATE, 4490 03:02:25,001 --> 03:02:26,000 DEALING WITH ALL THE 4491 03:02:26,001 --> 03:02:27,000 STAKEHOLDERS, DEALING WITH THE 4492 03:02:27,001 --> 03:02:29,000 ADMINISTRATION, DEALING WITH THE 4493 03:02:29,001 --> 03:02:31,000 FOLKS ON THE HOUSE SIDE, AND 4494 03:02:31,001 --> 03:02:35,000 WITH ALL DUE RESPECT, DOING IT 4495 03:02:35,001 --> 03:02:38,000 THREE TIMES IN O CONGRESS, 4496 03:02:38,001 --> 03:02:39,000 DEFINITELY A HALL OF FAME PERMANCE. 4497 03:02:39,001 --> 03:02:40,000 MR. DODD: I THANK MY COLLEAGUE 4498 03:02:40,001 --> 03:02:45,000 VERY MUCH. 4499 03:02:45,001 --> 03:02:46,000 LET ME ALSO JUST SAY, WHILE MY 4500 03:02:46,001 --> 03:02:49,000 COLLEAGUE FROM DELAWARE TALKED 4501 03:02:49,001 --> 03:02:50,000 ABOU 41. 4502 03:02:50,001 --> 03:02:51,000 THERE ARE A NUMBER OF 4503 03:02:51,001 --> 03:02:53,000 REPUBLICANS WHO PLAYED A VERY 4504 03:02:53,001 --> 03:02:54,000 CRITICAL AND SUPPORTIVE ROLE IN 4505 03:02:54,001 --> 03:02:55,000 THIS BILL. 4506 03:02:55,001 --> 03:02:56,000 I DON'T WANT THE RECORD TO 4507 03:02:56,001 --> 03:02:57,000 PERSIST IN SUGGESTING THAT WAS 4508 03:02:57,001 --> 03:02:59,000 THE CASE. 4509 03:02:59,001 --> 03:03:02,000 EVEN PEOPLE WHO ENDED UP NOT 4510 03:03:02,001 --> 03:03:04,000 VOTING FOR THE BILL, AT LEAST 4511 03:03:04,001 --> 03:03:05,000 HAVEN'T SO FAR, ADDED 4512 03:03:05,001 --> 03:03:07,000 SUBSTANTIALLY TO THE VALUE OF 4513 03:03:07,001 --> 03:03:09,000 THIS BILL ON THE OTHER SIDE. 4514 03:03:09,001 --> 03:03:11,000 I'M NOT -- IN SOME CASES THEY 4515 03:03:11,001 --> 03:03:12,000 MAY NOT WANT TO ACKNOWLEDGE 4516 03:03:12,001 --> 03:03:14,000 THAT, BUT THEY DID. 4517 03:03:14,001 --> 03:03:16,000 OF COURSE IN THE CASE OF OUR TWO 4518 03:03:16,001 --> 03:03:18,000 COLLEAGUES FROM MAINE AND OUR COLLEAGUE FROM MASSACHUSETTS 4519 03:03:18,001 --> 03:03:20,000 HAVE TAKEN AN AWFUL LOT OF ABUSE 4520 03:03:20,001 --> 03:03:21,000 IN THE LAST NUMBER OF WEEKS 4521 03:03:21,001 --> 03:03:24,000 BECAUSE THEY WORKED WITH US ON 4522 03:03:24,001 --> 03:03:27,000 THE BILL, MADE SIGNIFICANT CONTRIBUTIONS. 4523 03:03:27,001 --> 03:03:33,000 AND WHILE THEY DON'T AGREE WITH 4524 03:03:33,001 --> 03:03:35,000 EVERY DOTTED "I" AND CROSSED "T" 4525 03:03:35,001 --> 03:03:36,000 LIKE I DON'T ON THIS BILL 4526 03:03:36,001 --> 03:03:37,000 DECIDED THE COUNTRY WOULD BE 4527 03:03:37,001 --> 03:03:39,000 BETTER OFF WITH THIS LEGISLATION 4528 03:03:39,001 --> 03:03:40,000 THAN NOT. 4529 03:03:40,001 --> 03:03:42,000 I WOULDN'T WANT THE RECORD TO BE 4530 03:03:42,001 --> 03:03:43,000 UNCORRECTED WHEN IT COMES TO A 4531 03:03:43,001 --> 03:03:45,000 NUMBER OF PEOPLE, INCLUDING 4532 03:03:45,001 --> 03:03:49,000 THOSE THREE IN PARTICULAR, WHOM 4533 03:03:49,001 --> 03:03:50,000 I PRESUME CONTINUE TO TAKE ABUSE 4534 03:03:50,001 --> 03:03:53,000 FROM OTHERS BECAUSE THEY DIDN'T 4535 03:03:53,001 --> 03:03:56,000 TOE THE PARTY LINE. 4536 03:03:56,001 --> 03:03:57,000 THEY HAVE ACTED AS UNITED STATES 4537 03:03:57,001 --> 03:04:00,000 SENATORS, WHICH IS OUR FIRST 4538 03:04:00,001 --> 03:04:01,000 RESPONSIBILITY EUFRPLT KNOW WHAT 4539 03:04:01,001 --> 03:04:02,000 THAT FEELS -- I KNOW WHAT THAT 4540 03:04:02,001 --> 03:04:04,000 FEELS LIKE. 4541 03:04:04,001 --> 03:04:06,000 I WAS THE ONLY ONE ON THIS SIDE 4542 03:04:06,001 --> 03:04:08,000 TO VOTE WITH REPUBLICANS ON THE 4543 03:04:08,001 --> 03:04:09,000 OTHER ON SUBSTANTIVE MATTERS, 4544 03:04:09,001 --> 03:04:11,000 NOMINATIONS AND OTHERS. 4545 03:04:11,001 --> 03:04:12,000 IT'S A LONELY MOMENT, I CAN TELL 4546 03:04:12,001 --> 03:04:13,000 YOU, WHEN IT HAPPENS. 4547 03:04:13,001 --> 03:04:16,000 IT'S PAINFUL. 4548 03:04:16,001 --> 03:04:19,000 YOU GET THOSE LONG LOOKS FROM 4549 03:04:19,001 --> 03:04:24,000 YOUR COLLEAGUES. 4550 03:04:24,001 --> 03:04:26,000 IT'S UNCOMFORTABLE, TO PUT IT MILDLY. 4551 03:04:26,001 --> 03:04:27,000 IT'S SOME OF THE PROUDEST 4552 03:04:27,001 --> 03:04:29,000 MOMENTS YOU HAVE ON THIS EARTH 4553 03:04:29,001 --> 03:04:30,000 HERE WHEN YOU TAKE THOSE 4554 03:04:30,001 --> 03:04:32,000 DECISIONS AND DO SO FOR THE 4555 03:04:32,001 --> 03:04:33,000 RIGHT REASONS. 4556 03:04:33,001 --> 03:04:35,000 WHILE I'M DEEPLY GRATEFUL FOR MY 4557 03:04:35,001 --> 03:04:37,000 DEMOCRATIC COLLEAGUES, MANY OF 4558 03:04:37,001 --> 03:04:40,000 THOSE WHO HAD CONCERNS ABOUT THE 4559 03:04:40,001 --> 03:04:41,000 BILL LIKE MY FRIEND FROM 4560 03:04:41,001 --> 03:04:43,000 DELAWARE DID AND HAVE HELPED GET 4561 03:04:43,001 --> 03:04:46,000 THOSE THERE. 4562 03:04:46,001 --> 03:04:50,000 I SUPPOSE THERE IS A CASE OF 4563 03:04:50,001 --> 03:04:52,000 PRODIGAL SON, PRODIGAL DAUGHTER 4564 03:04:52,001 --> 03:04:54,000 WHO DECIDED TO STAND UP AND HELP 4565 03:04:54,001 --> 03:04:56,000 US GET A BILL DONE HERE. 4566 03:04:56,001 --> 03:04:57,000 EVERYONE WHO HAS BEEN SUPPORTIVE 4567 03:04:57,001 --> 03:04:59,000 AND HELPFUL DESERVES CREDIT FOR 4568 03:04:59,001 --> 03:05:00,000 IT. 4569 03:05:00,001 --> 03:05:01,000 BUT THOSE WHO WERE WILLING TO 4570 03:05:01,001 --> 03:05:04,000 TAKE AN AWFUL LOT OF ABUSE IN 4571 03:05:04,001 --> 03:05:08,000 THE THE PROCESS OF DOING SO I 4572 03:05:08,001 --> 03:05:11,000 THINK DESERVES COMMENDATION. 4573 03:05:11,001 --> 03:05:14,000 I DIDN'T WANT TO LET THAT NUMBER 4574 03:05:14,001 --> 03:05:15,000 STAND -- 41 -- WERE. 4575 03:05:15,001 --> 03:05:16,000 MR. KAUFMAN: MADAM PSIDENT? 4576 03:05:16,001 --> 03:05:17,000 THE PRESIDING OFFICER: THE SENATOR FROM DELAWARE. 4577 03:05:17,001 --> 03:05:18,000 MR. KAUFMAN: I TOTALLY AGREE 4578 03:05:18,001 --> 03:05:23,000 WITH YOU. 4579 03:05:23,001 --> 03:05:27,000 I THINK -- I JUST -- AND SO IT'S OVERSIMPLE. 4580 03:05:27,001 --> 03:05:28,000 I KNOW YOU GOT LOTS 4581 03:05:28,001 --> 03:05:31,000 FROM THE OTHER SIDE. 4582 03:05:31,001 --> 03:05:33,000 I KNOW HOW DIFFICULT IT ITO BE 4583 03:05:33,001 --> 03:05:34,000 THE PERSON STANDING THERE WHEN 4584 03:05:34,001 --> 03:05:35,000 EVERYONE IN YOUR CAUCUS WANTS TO 4585 03:05:35,001 --> 03:05:37,000 VOTE THE OTHER WAY. 4586 03:05:37,001 --> 03:05:38,000 BUT WHAT IS AMAZING TO ME IS 4587 03:05:38,001 --> 03:05:40,000 WHAT PASSED IS WHAT THE THREE OF 4588 03:05:40,001 --> 03:05:41,000 THEM SIGNED ON TO, OR OTHERS 4589 03:05:41,001 --> 03:05:44,000 WOULD SIGN ON TO. 4590 03:05:44,001 --> 03:05:48,000 THE IDEA THAT YOU CAME WITH A 4591 03:05:48,001 --> 03:05:49,000 BILL, I THINK EVERY ONE OF MY 4592 03:05:49,001 --> 03:05:51,000 CONCERNS I RAISED TODAY, IF WE 4593 03:05:51,001 --> 03:05:53,000 HAD GOTTEN HELP FROM THE OTHER 4594 03:05:53,001 --> 03:05:54,000 SIDE MIGHT HAVE GONE THE OTHER 4595 03:05:54,001 --> 03:05:56,000 WAY BUT THEY WERE NOT GOING TO 4596 03:05:56,001 --> 03:05:57,000 GO THE OTHER WAY WITH THE GROUP 4597 03:05:57,001 --> 03:05:58,000 WE HAD. 4598 03:05:58,001 --> 03:06:00,000 I COULDN'T AGREE WITH YOU MORE. 4599 03:06:00,001 --> 03:06:01,000 IT'S EASY TO STAND UP IN OUR 4600 03:06:01,001 --> 03:06:04,000 CAUCUS AND BE FOR THIS BILL. 4601 03:06:04,001 --> 03:06:05,000 I THINK WHAT THEY DID WAS TRULY 4602 03:06:05,001 --> 03:06:09,000 COURAGEOUS. 4603 03:06:09,001 --> 03:06:10,000 BUT I ALSO THINK THAT ON EVERY 4604 03:06:10,001 --> 03:06:17,000 MAJOR ISSUE, TO HAVE TO FIGURE 4605 03:06:17,001 --> 03:06:20,000 OUT HOW YOU GET 60 VOTES IS A 4606 03:06:20,001 --> 03:06:22,000 SPECIAL, SPECIAL, DIFFICULT PROBLEM. 4607 03:06:22,001 --> 03:06:25,000 IT'S SORT OF LIKE, YOU KNOW, 4608 03:06:25,001 --> 03:06:28,000 IT'S NOT LIKE A SWAN DIVE, IT'S 4609 03:06:28,001 --> 03:06:32,000 NOT LIKE, AS THEY DO IN THE 4610 03:06:32,001 --> 03:06:33,000 OLYMPICS, TRIPLE-SOMERSAULT IN 4611 03:06:33,001 --> 03:06:36,000 THE PIKE POSITION. 4612 03:06:36,001 --> 03:06:37,000 I THINK PUTTING ALL THOSE THINGS 4613 03:06:37,001 --> 03:06:38,000 TOGETHER, IT'S THE DIFFICULT OF 4614 03:06:38,001 --> 03:06:40,000 GETTING A BILL WHEN YOU NEED TO 4615 03:06:40,001 --> 03:06:42,000 GET 60 VOTES ON EVERY SIDE, AND 4616 03:06:42,001 --> 03:06:45,000 THERE'S A CONSTANT PRESSURE ON 4617 03:06:45,001 --> 03:06:49,000 THE OTHER SIDE 4618 03:06:49,001 --> 03:06:50,000 OTHER 4619 03:06:50,001 --> 03:06:52,000 LATER DEBATE AND DISCUSSION -- I 4620 03:06:52,001 --> 03:06:53,000 KNOW THERE'S A LOT OF TALK ABOUT 4621 03:06:53,001 --> 03:06:54,000 CHANGING THE RULES OF THE UNITED 4622 03:06:54,001 --> 03:06:55,000 STATES SENATE BECAUSE OF THE 4623 03:06:55,001 --> 03:06:59,000 FRUSTRATION MEMBERS FEEL. 4624 03:06:59,001 --> 03:07:02,000 I WILL MAKE, IN M WANING HOURS 4625 03:07:02,001 --> 03:07:04,000 HERE AS STRONG A PLEA AS I 4626 03:07:04,001 --> 03:07:06,000 CANNOT TO SUCCOMB TO THE 4627 03:07:06,001 --> 03:07:08,000 TEMPTATION TO CHANGE THIS INSTITUTION BECAUSE OF THE 4628 03:07:08,001 --> 03:07:10,000 CURRENT FRUSTRATIONS PEOPLE FEEL. 4629 03:07:10,001 --> 03:07:11,000 THERE'S A REASON THIS 4630 03:07:11,001 --> 03:07:12,000 INSTITUTION EXISTS AND HAS THE 4631 03:07:12,001 --> 03:07:14,000 RULES IT DOES. 4632 03:07:14,001 --> 03:07:15,000 ALL OF US ONE DAY ARE IN THE 4633 03:07:15,001 --> 03:07:17,000 MINORITY OR THE MAJORITY. 4634 03:07:17,001 --> 03:07:20,000 THE FACT THAT SOME MAY HAVE USED 4635 03:07:20,001 --> 03:07:22,000 TH RULES, AS HAS HAPPENED HERE, 4636 03:07:22,001 --> 03:07:25,000 WITHOUT QUESTION, OUGHT NOT TO 4637 03:07:25,001 --> 03:07:26,000 BE A SUGGESTION FOR 4638 03:07:26,001 --> 03:07:28,000 FUNDAMENTALLY CHANGING THEM. 4639 03:07:28,001 --> 03:07:31,000 THERE ARE WAYS TO DEAL WITH THE PROBLEM. 4640 03:07:31,001 --> 03:07:34,000 HE'S NO LONGER WITH US, MY SEAT 4641 03:07:34,001 --> 03:07:37,000 MATE RIGHT HERE, ROBERT C. BYRD, 4642 03:07:37,001 --> 03:07:39,000 BUT HE WOULD SPEAK FOR HOURS ON 4643 03:07:39,001 --> 03:07:42,000 END ABOUT THE IMPORTANCE OF NOT 4644 03:07:42,001 --> 03:07:49,000 LETTING THE VAGARIES OF THE 4645 03:07:49,001 --> 03:07:50,000 INSTITUTION. 4646 03:07:50,001 --> 03:07:51,000 MRS. SHAHEEN: MADAM PRESIDENT? 4647 03:07:51,001 --> 03:07:52,000 THE PRESIDING OFFICER: THE 4648 03:07:52,001 --> 03:07:53,000 SENATOR FROM NEW HAMPSHIRE. 4649 03:07:53,001 --> 03:07:55,000 MRS. SHAHEEN: I'M PLEASED TO 4650 03:07:55,001 --> 03:07:56,000 JOIN MY COLLEAGUE FROM 4651 03:07:56,001 --> 03:07:59,000 CONNECTICUT, SENATOR CHRIS DODD, 4652 03:07:59,001 --> 03:08:01,000 AND BE HERE ON THE FLOOR THIS 4653 03:08:01,001 --> 03:08:02,000 MORNING -- ACTUALLY IT'S THIS 4654 03:08:02,001 --> 03:08:03,000 AFTERNOON, TO TALABOUT THE 4655 03:08:03,001 --> 03:08:05,000 FINANCIAL REGATORY REFORM BILL 4656 03:08:05,001 --> 03:08:07,000 THAT IS PENDING BEFORE US AND 4657 03:08:07,001 --> 03:08:09,000 SHOULD NOTE BEFORE I BEGIN MY 4658 03:08:09,001 --> 03:08:11,000 REMARK 4659 03:08:11,001 --> 03:08:13,000 SENATOR DODD FOR HIS LEADERSHIP 4660 03:08:13,001 --> 03:08:15,000 AND HARD WORK IN GETTING THIS 4661 03:08:15,001 --> 03:08:18,000 BILL TO THE FLOOR SO THAT WE CAN 4662 03:08:18,001 --> 03:08:19,000 HOPEFULLY PASS IT THIS 4663 03:08:19,001 --> 03:08:22,000 AFTERNOON. 4664 03:08:22,001 --> 03:08:23,000 IT'S IMPORTANT BECAUSE OF WHAT'S 4665 03:08:23,001 --> 03:08:26,000 HAPPENED IN THIS COUNTRY AND 4666 03:08:26,001 --> 03:08:28,000 WHAT'S HAPPENED IN MY STATE OF NEW HAMPSHIRE. 4667 03:08:28,001 --> 03:08:30,000 OVER THE PAST TWO YEARS PEOPLE 4668 03:08:30,001 --> 03:08:32,000 IN NEW HAMPSHIRE AND ACROSS THE 4669 03:08:32,001 --> 03:08:35,000 COUNTRY HAVE SUFFERED THE 4670 03:08:35,001 --> 03:08:37,000 CONSEQUENCES OF WALLTREET'S GAMBLES. 4671 03:08:37,001 --> 03:08:39,000 AND WHILE WE'RE SEEING OUR 4672 03:08:39,001 --> 03:08:41,000 ECONOMY IN NEW HAMPSHIRE BEGIN 4673 03:08:41,001 --> 03:08:43,000 TO REBOUND, WHICH IS THANKS IN 4674 03:08:43,001 --> 03:08:45,000 NO SMALL PART TO THE JOB 4675 03:08:45,001 --> 03:08:46,000 CREATION THAT WAS SPURRED BY THE 4676 03:08:46,001 --> 03:08:49,000 RECOVERY ACT, IT IS CRITICAL 4677 03:08:49,001 --> 03:08:51,000 THAT WE ACT TO PREVENT WALL 4678 03:08:51,001 --> 03:08:53,000 STREET'S RISKY, RECKLESS 4679 03:08:53,001 --> 03:08:55,000 BEHAVIOR FROM EVER AGAIN 4680 03:08:55,001 --> 03:08:58,000 BRINGING OUR ECONOMY TO ITS KNEES. 4681 03:08:58,001 --> 03:08:59,000 WE NEED TO PUT IN PLACE REFORMS 4682 03:08:59,001 --> 03:09:02,000 TO STOP WALL STREET FIRMS FROM 4683 03:09:02,001 --> 03:09:03,000 GROWING SO BIG AND SO 4684 03:09:03,001 --> 03:09:05,000 INTERCONNECTED THAT THEY CAN 4685 03:09:05,001 --> 03:09:07,000 THREATEN OUR ENTIRE ECONOMY. 4686 03:09:07,001 --> 03:09:09,000 WE NEED TO PROTECT CONSUMERS 4687 03:09:09,001 --> 03:09:10,000 FROM ABUSIVE PRACTICES AND 4688 03:09:10,001 --> 03:09:12,000 EMPOWER THEM TO MAKE SOUND 4689 03:09:12,001 --> 03:09:13,000 FINANCIAL DECISIONS FOR THEIR 4690 03:09:13,001 --> 03:09:17,000 FAMILIES. 4691 03:09:17,001 --> 03:09:19,000 WE NEED MORE TRANSPARENCY IN 4692 03:09:19,001 --> 03:09:21,000 REGULATION IN THE NOW SHADOWY 4693 03:09:21,001 --> 03:09:22,000 MARKETS WITH WALL STREET 4694 03:09:22,001 --> 03:09:25,000 EXECUTIVES AND INVESTMENT BANKS 4695 03:09:25,001 --> 03:09:28,000 HAVE MADE GAMBLES. 4696 03:09:28,001 --> 03:09:30,000 AND THOSE SHADOWY MARKETS, THE 4697 03:09:30,001 --> 03:09:31,000 WALL STREET FIRMS GOT ALL THE UP 4698 03:09:31,001 --> 03:09:33,000 SIDE AND AMERICAN FAMILIES GOT 4699 03:09:33,001 --> 03:09:35,000 ALL THE DOWN SIDE. 4700 03:09:35,001 --> 03:09:38,000 WE NEED TO DO EVERYTHING WE CAN 4701 03:09:38,001 --> 03:09:40,000 TO ENSURE THAT A FINANCIAL 4702 03:09:40,001 --> 03:09:43,000 CRISIS LIKE THE ONE WE 4703 03:09:43,001 --> 03:09:45,000 EXPERIENCED IN LATE 2008 NEVER 4704 03:09:45,001 --> 03:09:47,000 HAPPEN 4705 03:09:47,001 --> 03:09:49,000 AND WE NEED TO ENSURE THAT 4706 03:09:49,001 --> 03:09:51,000 TAXPAYERS WILL NOT BE ASKED TO 4707 03:09:51,001 --> 03:09:56,000 BAIL OUT WALL STREET. 4708 03:09:56,001 --> 03:09:57,000 IN SHORT, WE NEED TO PASS THE 4709 03:09:57,001 --> 03:09:59,000 STRONG WALL STREET REFORM BILL 4710 03:09:59,001 --> 03:10:01,000 THAT IS BEFORE US TODAY. 4711 03:10:01,001 --> 03:10:03,000 NOW, I THINK IT'S ALSO IMPORTANT 4712 03:10:03,001 --> 03:10:04,000 TO NOTE THAT WHILE THIS BILL 4713 03:10:04,001 --> 03:10:08,000 REQUIRES WALL STREET BANKS TO BE 4714 03:10:08,001 --> 03:10:10,000 HELD MORE ACCOUNTABLE, IT DOES 4715 03:10:10,001 --> 03:10:11,000 NOT UNFAIRLY BDEN COMMUNITY 4716 03:10:11,001 --> 03:10:13,000 BANKS. 4717 03:10:13,001 --> 03:10:15,000 COMMUNITY BANKS DIDN'T CAUSE THE 4718 03:10:15,001 --> 03:10:17,000 FINANCIAL CRISIS, AND THEY 4719 03:10:17,001 --> 03:10:18,000 SHOULDN'T HAVE TO PAY FOR WALL 4720 03:10:18,001 --> 03:10:20,000 STREET'S RECKLESS BEHAVIOR. 4721 03:10:20,001 --> 03:10:22,000 THAT'S PARTICULARLY IMPORTANT TO 4722 03:10:22,001 --> 03:10:24,000 US IN NEW HAMPSHIRE WHERE 4723 03:10:24,001 --> 03:10:27,000 COMMUNITY BANKS MAKE A HUGE 4724 03:10:27,001 --> 03:10:29,000 DIFFERENCE FOR OUR CITIES AND TOWNS. 4725 03:10:29,001 --> 03:10:31,000 THAT'S WHY I JOIN WITH SENATOR 4726 03:10:31,001 --> 03:10:33,000 SNOWE ON HER AMENDMENT TO 4727 03:10:33,001 --> 03:10:35,000 ELIMINATE THE UNNECESSARY, 4728 03:10:35,001 --> 03:10:36,000 BURDENSOME REQUIREMENT THAT 4729 03:10:36,001 --> 03:10:37,000 COMMUNITY BANKS AND CREDIT 4730 03:10:37,001 --> 03:10:42,000 UNIONS COLLECT AND REPORT ON 4731 03:10:42,001 --> 03:10:43,000 VARIOUS DATA ABOUT THEIR DEPOSITORS. 4732 03:10:43,001 --> 03:10:45,000 I ALSO SPONSORED ANOTHER 4733 03:10:45,001 --> 03:10:49,000 BIPARTISAN AMENDMENT, ONE TO 4734 03:10:49,001 --> 03:10:50,000 MAKE LARGE, RISKIER BANKS PAY 4735 03:10:50,001 --> 03:10:52,000 THEIR FAIR SHARE OF FDIC 4736 03:10:52,001 --> 03:10:54,000 PREMIUMS AND LOWER ASSESSMENTS 4737 03:10:54,001 --> 03:10:55,000 FOR COMMUNITY BANKS. 4738 03:10:55,001 --> 03:10:57,000 COMMUNITY BANK LENDING REALLY IS 4739 03:10:57,001 --> 03:10:58,000 THE LIFEBLOOD OF NEW HAMPSHIRE'S 4740 03:10:58,001 --> 03:10:59,000 ECONOMY. 4741 03:10:59,001 --> 03:11:02,000 EVERY DOLLAR COMMUNITY BANKS 4742 03:11:02,001 --> 03:11:03,000 HAVE TO PAY FOR WALL STREET'S 4743 03:11:03,001 --> 03:11:05,000 MISTAKES IS A DOLLAR THAT COULD 4744 03:11:05,001 --> 03:11:11,000 BE GOING TO EXTEN CREDIT T 4745 03:11:11,001 --> 03:11:13,000 SMALL BUSINESSES AND TO HOME AND 4746 03:11:13,001 --> 03:11:15,000 CONSUMER LOANS TO FAMILIES. 4747 03:11:15,001 --> 03:11:16,000 I ALSO JOIN SENATOR COLLINS ON 4748 03:11:16,001 --> 03:11:19,000 HER AMENDMENT TO REQUIRE WALL 4749 03:11:19,001 --> 03:11:24,000 STREET BANKS TO FOLLOW THE SAME 4750 03:11:24,001 --> 03:11:27,000 CAPITAL AND RISK STANDARDS THAT 4751 03:11:27,001 --> 03:11:28,000 SMALL DEPOSITORY BANKS MUST 4752 03:11:28,001 --> 03:11:30,000 FOLLOW. 4753 03:11:30,001 --> 03:11:32,000 THIS ASSESSMENT WILL LET THE 4754 03:11:32,001 --> 03:11:34,000 RISKY BANKS, BANKS LIKE BEAR 4755 03:11:34,001 --> 03:11:35,000 STEARNS AND LEHMAN BROTHERS, 4756 03:11:35,001 --> 03:11:38,000 FOLLOW THE SAME STANDARDS THAT 4757 03:11:38,001 --> 03:11:41,000 ALREADY APPLY TO SMALL DEPOSITORY BANKS. 4758 03:11:41,001 --> 03:11:42,000 THIS BILL REQUIRES THE BIG WALL 4759 03:11:42,001 --> 03:11:43,000 STREET BANKS TO HAVE ADEQUATE 4760 03:11:43,001 --> 03:11:46,000 CAPITAL TO PREVENT TAXPAYERS 4761 03:11:46,001 --> 03:11:47,000 FROM HAVING TO BAIL THEM OUT 4762 03:11:47,001 --> 03:11:50,000 AGAIN. 4763 03:11:50,001 --> 03:11:51,000 SO, I'M VERY PLEASED THAT THOSE 4764 03:11:51,001 --> 03:11:53,000 BIPARTISAN AMENDMENTS WHICH 4765 03:11:53,001 --> 03:11:54,000 STRENGTHENED THEILL BY 4766 03:11:54,001 --> 03:11:56,000 PROTECTING COMMUNITY BANKS HAVE 4767 03:11:56,001 --> 03:11:59,000 BEEN ADOPTED, AND I THINK IT 4768 03:11:59,001 --> 03:12:01,000 SPEAKS TO THE CONVERSATION THAT 4769 03:12:01,001 --> 03:12:03,000 YOU WERE HAVING, SENATOR DODD, 4770 03:12:03,001 --> 03:12:06,000 WITH SENATOR KAUFMAN EARLIER 4771 03:12:06,001 --> 03:12:08,000 THAT, THIS IS A BILL THAT HAS 4772 03:12:08,001 --> 03:12:11,000 GOTTEN BROAD SUPPORT IN THIS 4773 03:12:11,001 --> 03:12:14,000 BODY AND A LOT OF INPUT, AND 4774 03:12:14,001 --> 03:12:15,000 THAT'S MADE IT BETTER. 4775 03:12:15,001 --> 03:12:17,000 MADAM PRESIDENT, I'M GLAD WE'VE 4776 03:12:17,001 --> 03:12:19,000 BEEN ABLE TO WORK IN THIS 4777 03:12:19,001 --> 03:12:21,000 BIPARTISAN MANNER TO CRAFT A 4778 03:12:21,001 --> 03:12:24,000 STRONG BILL THAT RAINES IN THE 4779 03:12:24,001 --> 03:12:25,000 WRECK -- THAT REINS IN THE 4780 03:12:25,001 --> 03:12:29,000 RECKLESS WALL STREET CONDUCT 4781 03:12:29,001 --> 03:12:31,000 THAT GOT US TO THE BRINK OF FINANCIAL DISASTER. 4782 03:12:31,001 --> 03:12:32,000 IT KEEPS COMMUNITY BANKS STRONG 4783 03:12:32,001 --> 03:12:36,000 AND PROTECTS TAXPAYERS. 4784 03:12:36,001 --> 03:12:39,000 AND I LOOK FORWARD TO VOTING 4785 03:12:39,001 --> 03:12:40,000 TO THIS BILL. THE PRESIDING OFFICER: THE 4786 03:12:40,001 --> 03:12:41,000 SENATOR FROM CONNECTICUT. 4787 03:12:41,001 --> 03:12:43,000 MR. DODD: MADAM PRESIDENT, 4788 03:12:43,001 --> 03:12:44,000 OUR COLLEAGUE FROM NEW 4789 03:12:44,001 --> 03:12:46,000 HAMPSHIRE. 4790 03:12:46,001 --> 03:12:47,000 I SEE OUR OTHER COLLEAGUE FROM 4791 03:12:47,001 --> 03:12:48,000 NEW HAMPSHIRE WELL. 4792 03:12:48,001 --> 03:12:54,000 IT'S BEEN A NEW HAMPSHIRE MOMENT. 4793 03:12:54,001 --> 03:12:56,000 BUT LET ME THANK SENATOR SHAHEEN 4794 03:12:56,001 --> 03:12:58,000 AND OUR COLLEAGUE FROM MAINE, 4795 03:12:58,001 --> 03:13:00,000 SENATOR SNOWE, FOR WORKING AS 4796 03:13:00,001 --> 03:13:01,000 THEY DID ON THE COMMUNITY BANK 4797 03:13:01,001 --> 03:13:03,000 ISSUES, AND WAS PLEASED, AS I 4798 03:13:03,001 --> 03:13:04,000 NOTED YESTERDAY, THE INDEPENDENT 4799 03:13:04,001 --> 03:13:06,000 COMMUNITY BANKERS ASSOCIATION, 4800 03:13:06,001 --> 03:13:09,000 WHILE NOT ENDORSING THE ENTIRE 4801 03:13:09,001 --> 03:13:11,000 BILL, BUT SPECIFICALLY ON THEIR 4802 03:13:11,001 --> 03:13:12,000 ISSUES INVOLVING COMMUNITY 4803 03:13:12,001 --> 03:13:14,000 BANKS, EXPRESSED STRONG SUPPORT 4804 03:13:14,001 --> 03:13:16,000 FOR THIS BILL. 4805 03:13:16,001 --> 03:13:17,000 AND HOW MUCH STRONGER THESE 4806 03:13:17,001 --> 03:13:20,000 BANKS ARE TODAY AS A RESULT OF 4807 03:13:20,001 --> 03:13:22,000 OUR EFFORTS ON THIS BILL, THAT 4808 03:13:22,001 --> 03:13:23,000 WOULD BE THE CASE IF WE WERE TO 4809 03:13:23,001 --> 03:13:24,000 DEFEAT THIS LEGISLATION. 4810 03:13:24,001 --> 03:13:27,000 THEIR ABILITY TO COMPETE WITH 4811 03:13:27,001 --> 03:13:28,000 THESE LARGER BANKS HAS BEEN 4812 03:13:28,001 --> 03:13:29,000 ENHANCED TREMENDOUSLY BY WHAT 4813 03:13:29,001 --> 03:13:30,000 WE'VE DONE IN THE BILL. 4814 03:13:30,001 --> 03:13:32,000 IF THESE PROVISIONS WERE NOT 4815 03:13:32,001 --> 03:13:33,000 ADOPTED THEY WOULD BE BACK IN 4816 03:13:33,001 --> 03:13:34,000 THE SITUATION WHERE THERE WOULD 4817 03:13:34,001 --> 03:13:35,000 BE SIGNIFICANT DISADVANTAGES FOR 4818 03:13:35,001 --> 03:13:37,000 THEM UNDER THE CURRENT LAW. 4819 03:13:37,001 --> 03:13:39,000 I AM VERY GRATEFUL TO SENATOR 4820 03:13:39,001 --> 03:13:40,000 SHAHEEN AND SENATOR SNOWE, 4821 03:13:40,001 --> 03:13:41,000 OBVIOUSLY, AND OTHERS WHO 4822 03:13:41,001 --> 03:13:43,000 SUPPORTED YOUR EFFORTS TO 4823 03:13:43,001 --> 03:13:44,000 STRENGTHEN THE ROLE OF OUR 4824 03:13:44,001 --> 03:13:45,000 COMMUNITY BANKS ANDLAY SUCH A 4825 03:13:45,001 --> 03:13:49,000 CRITICAL ROLE. 4826 03:13:49,001 --> 03:13:52,000 AS YOU POINT OUT, WE'RE NEVER A 4827 03:13:52,001 --> 03:13:56,000 SOURCE OF ENDING THE PROBLEMS OF 4828 03:13:56,001 --> 03:13:59,000 THE RESIDENTIAL 4829 03:13:59,001 --> 03:14:01,000 MR. GREGG: MADAM PRESIDENT? 4830 03:14:01,001 --> 03:14:02,000 THE PRESIDING OFFICER: THE 4831 03:14:02,001 --> 03:14:04,000 SENATOR FROM NEW HAMPSHIRE. 4832 03:14:04,001 --> 03:14:06,000 MR. GREGG: LET ME BEGIN BY 4833 03:14:06,001 --> 03:14:08,000 FIRST THANKING THE SENATOR FROM 4834 03:14:08,001 --> 03:14:10,000 CONNECTICUT AND CONGRATULATING HIM. 4835 03:14:10,001 --> 03:14:12,000 HE'S BEEN PRETTY EFFECTIVE HERE 4836 03:14:12,001 --> 03:14:14,000 IN THIS LAST YEAR IN THE SENATE, 4837 03:14:14,001 --> 03:14:16,000 GOTTEN A LOT OF STUFF DONE AND 4838 03:14:16,001 --> 03:14:19,000 LOT OF STUFF THROUGH. 4839 03:14:19,001 --> 03:14:20,000 AND I HAVEN'T AGREED WITH IT 4840 03:14:20,001 --> 03:14:22,000 ALL, BY THE WAY. 4841 03:14:22,001 --> 03:14:23,000 BUT MOST OF ALL ALWAYS FAIR AND 4842 03:14:23,001 --> 03:14:27,000 BALANCED, OWLS WITH A GOOD SENSE 4843 03:14:27,001 --> 03:14:29,000 OF HUMOR, ALWAYS LISTENING TO 4844 03:14:29,001 --> 03:14:30,000 THOSE HE MAY NOT AGREE WITH 4845 03:14:30,001 --> 03:14:31,000 ENTIRELY AND ALLOW US TO 4846 03:14:31,001 --> 03:14:33,000 PARTICIPATE AT THE TABLE IN 4847 03:14:33,001 --> 03:14:35,000 DISCUSSION AND AT THE VERY 4848 03:14:35,001 --> 03:14:36,000 BEGINNING OF THE PROCESS IN A 4849 03:14:36,001 --> 03:14:37,000 VERY SUBSTANVE WAY. 4850 03:14:37,001 --> 03:14:39,000 I THANK HIM FOR HIS COURTESY. 4851 03:14:39,001 --> 03:14:41,000 I THANK HIM FOR THE WAY HE RUNS 4852 03:14:41,001 --> 03:14:44,000 THE COMMITTEE AND THE WAY HE RAN 4853 03:14:44,001 --> 03:14:45,000 THE "HELP" COMMITTEE WHEN YOU 4854 03:14:45,001 --> 03:14:49,000 SUCCEEDED TO THAT -- WHEN HE 4855 03:14:49,001 --> 03:14:52,000 SUCCEEDED TO THAT LEADERSHIP IN 4856 03:14:52,001 --> 03:14:54,000 THE UNFORTUNATE PASSING OF 4857 03:14:54,001 --> 03:14:57,000 SENATOR KENNEDY. 4858 03:14:57,001 --> 03:14:58,000 I HAVE RESERVATIONS ABOUT THIS 4859 03:14:58,001 --> 03:15:00,000 BILL. 4860 03:15:00,001 --> 03:15:02,000 THEY ARE MORE THAN RESERVATIONS. 4861 03:15:02,001 --> 03:15:03,000 I FEEL THE BILL DOESN'T START 4862 03:15:03,001 --> 03:15:05,000 OUT WHERE WE NEED TO GO. 4863 03:15:05,001 --> 03:15:07,000 WHEN WE STARTED OUT IN THIS 4864 03:15:07,001 --> 03:15:08,000 EFFORT OUR PURPOSE WAS, IN MY 4865 03:15:08,001 --> 03:15:10,000 OPINION, TWO FOLD. 4866 03:15:10,001 --> 03:15:11,000 FIRST, WE WANTED TO MAKE SURE WE 4867 03:15:11,001 --> 03:15:13,000 DID EVERYTHING WE COULD TO BUILD 4868 03:15:13,001 --> 03:15:14,000 INTO THE SYSTEM OF REGULATORY 4869 03:15:14,001 --> 03:15:19,000 ATMOSPHERE AND THE MARKETPLACE, 4870 03:15:19,001 --> 03:15:20,000 THE BREAKS AND THE ABILITY TO 4871 03:15:20,001 --> 03:15:22,000 AVOID ANOTHER SYSTEMIC MELTDOWN 4872 03:15:22,001 --> 03:15:24,000 OF THE TYPE THAT WE HAD IN LATE 4873 03:15:24,001 --> 03:15:26,000 2008, WHICH WAS A TRAUMATIC 4874 03:15:26,001 --> 03:15:28,000 EVENT. 4875 03:15:28,001 --> 03:15:30,000 NOBODY SHOULD UNDERESTIMATE HOW 4876 03:15:30,001 --> 03:15:31,000 SIGNIFICANT THE EVENTS OF LATE 4877 03:15:31,001 --> 03:15:33,000 2008 WERE. 4878 03:15:33,001 --> 03:15:35,000 IF ACTION HAD NOT BEEN TAKEN 4879 03:15:35,001 --> 03:15:37,000 UNDER THE TARP PROPOSAL AND 4880 03:15:37,001 --> 03:15:38,000 UNDER THE LEADERSHIP OF 4881 03:15:38,001 --> 03:15:40,000 PRESIDENT BUSH, SECRETARY 4882 03:15:40,001 --> 03:15:42,000 PAULSON AND THEN PRESIDENT 4883 03:15:42,001 --> 03:15:44,000 OBAMA, SECRETARY GEITHNER, THIS 4884 03:15:44,001 --> 03:15:47,000 COUNTR WOULD HAVE GONE INTO A 4885 03:15:47,001 --> 03:15:48,000 MUCH MORE SEVERE ECONOMIC 4886 03:15:48,001 --> 03:15:51,000 SITUATION. 4887 03:15:51,001 --> 03:15:52,000 PROBABLY A DEPRESSION. 4888 03:15:52,001 --> 03:15:53,000 SECRETARY PAULSON ONCE ESTIMATED 4889 03:15:53,001 --> 03:15:55,000 THAT THE UNEMPLOYMENT RATE WOULD 4890 03:15:55,001 --> 03:15:57,000 HAVE GONE TO 25%. 4891 03:15:57,001 --> 03:15:58,000 THE SIMPLE FACT IS 4892 03:15:58,001 --> 03:16:01,000 BANKING SYSTEM WOULD HAVE 4893 03:16:01,001 --> 03:16:02,000 PROBABLY IMPLODED -- MOST LIKELY 4894 03:16:02,001 --> 03:16:04,000 IMPLODED AND CERTAINLY MAIN 4895 03:16:04,001 --> 03:16:06,000 STREET AMERICA WOULD HAVE BEEN 4896 03:16:06,001 --> 03:16:09,000 PUT IN DIRE STRAITS. 4897 03:16:09,001 --> 03:16:10,000 BUT ACTION WAS TAKEN. 4898 03:16:10,001 --> 03:16:12,000 IT WAS DIFFICULT ACTION.?? 4899 03:16:12,001 --> 03:16:13,000 WE'RE STILL HEARING THE 4900 03:16:13,001 --> 03:16:15,000 RAMIFICATIONS OF IT, BUT IT WAS 4901 03:16:15,001 --> 03:16:16,000 THE RIGHT ACTION AND IT HAS LED 4902 03:16:16,001 --> 03:16:17,000 TO A STABLIZATION OF THE 4903 03:16:17,001 --> 03:16:19,000 FINANCIAL INDUSTRY. 4904 03:16:19,001 --> 03:16:21,000 BUT WE NEVER WANT TO HAVE TO SEE THAT HAPPEN AGAIN. 4905 03:16:21,001 --> 03:16:23,000 WE NEVER WANT TO GO THR 4906 03:16:23,001 --> 03:16:26,000 TYPE OF TRAUMA AGAIN AS A NATION 4907 03:16:26,001 --> 03:16:27,000 WHERE OUR ENTIRE FINANCIAL 4908 03:16:27,001 --> 03:16:28,000 COMMUNITY IS TEETERING. 4909 03:16:28,001 --> 03:16:30,000 SO THE PURPOSE OF THIS BILL 4910 03:16:30,001 --> 03:16:32,000 SHOULD BE TO PUT IN PLACE A 4911 03:16:32,001 --> 03:16:34,000 SERIES OF INITIATIVES WHICH WILL 4912 03:16:34,001 --> 03:16:35,000 HOPEFULLY MUTE THAT TYPE OF A 4913 03:16:35,001 --> 03:16:37,000 POTENTIAL FOR ANOTHER EVENT OF 4914 03:16:37,001 --> 03:16:39,000 SYSTEMIC MELTDOW 4915 03:16:39,001 --> 03:16:42,000 THE SECOND PURPOSE OF THIS BILL, 4916 03:16:42,001 --> 03:16:43,000 AND IT'S AN EQUALLY IMPORTANT 4917 03:16:43,001 --> 03:16:45,000 PURPOSE IS THAT WE NOT DO 4918 03:16:45,001 --> 03:16:48,000 SOMETHING THAT HARMS ONE OF OUR 4919 03:16:48,001 --> 03:16:50,000 FEW MEEK STRENGTHS AND -- UNIQUE 4920 03:16:50,001 --> 03:16:52,000 STRENGTHS AND CHARACTERS AS A 4921 03:16:52,001 --> 03:16:53,000 NATION, WHERE IF YOU'RE AN 4922 03:16:53,001 --> 03:16:56,000 ENTREPRENEUR AND HAVE AN IDEA 4923 03:16:56,001 --> 03:16:58,000 AND WILLING TO TAKE A RISK AND 4924 03:16:58,001 --> 03:16:59,000 CREATE JOBS, YOU CAN GET CREDIT 4925 03:16:59,001 --> 03:17:01,000 AN CAPITAL REASONABLY EASILY 4926 03:17:01,001 --> 03:17:03,000 COMPARED TO THE REST OF THE WORLD. 4927 03:17:03,001 --> 03:17:05,000 AND THAT HAS BEEN THE -- THE 4928 03:17:05,001 --> 03:17:07,000 ENGINE OF THE ECONOMIC 4929 03:17:07,001 --> 03:17:09,000 PROSPERITY OF OURATION, THE 4930 03:17:09,001 --> 03:17:12,000 AVAILABLITY OF CREDIT A 4931 03:17:12,001 --> 03:17:14,000 CAPITAL REASONABLY PRICED AND 4932 03:17:14,001 --> 03:17:16,000 REASONABLY AVAILABLE TO 4933 03:17:16,001 --> 03:17:17,000 ENTREPRENEURS IN OUR NATION. 4934 03:17:17,001 --> 03:17:18,000 THOSE SHOULD HAVE BEEN OUR TWO 4935 03:17:18,001 --> 03:17:21,000 GOALS. 4936 03:17:21,001 --> 03:17:24,000 IF YOU MATCH THIS BILL TO THOSE 4937 03:17:24,001 --> 03:17:25,000 GOALS, DOES IT MEET THE TEST OF 4938 03:17:25,001 --> 03:17:27,000 MEETING THOSE GOALS? 4939 03:17:27,001 --> 03:17:29,000 UNFORTUNATELY I DON'T THINK IT DOES. 4940 03:17:29,001 --> 03:17:30,000 THERE ARE SOME VERY POSITIVE 4941 03:17:30,001 --> 03:17:32,000 THINGS IN THE BILL. 4942 03:17:32,001 --> 03:17:34,000 THE RESOLUTION AUTHORI IS A 4943 03:17:34,001 --> 03:17:36,000 GOOD PRODUCT IN THIS BILL AND IT 4944 03:17:36,001 --> 03:17:38,000 WILL, IN MY OPINION, I KNOW 4945 03:17:38,001 --> 03:17:39,000 THERE'S A LOT OF DISCUSSION OF 4946 03:17:39,001 --> 03:17:42,000 THIS, BUT I BELIEVE IT WILL 4947 03:17:42,001 --> 03:17:44,000 PRETTY MUCH BRING AN END TO THE 4948 03:17:44,001 --> 03:17:46,000 CONCEPT OF TOO BIG TO FAIL. 4949 03:17:46,001 --> 03:17:47,000 IF AN INSTITUTION GETS 4950 03:17:47,001 --> 03:17:50,000 OVERLEVERAGED TO A POINT WHERE 4951 03:17:50,001 --> 03:17:52,000 IT'S NO LONGER SUSTAINABLE AND 4952 03:17:52,001 --> 03:17:56,000 IT'S A SYSTEMIC RIS 4953 03:17:56,001 --> 03:17:57,000 INSTITUTION, IT IS GOING TO 4954 03:17:57,001 --> 03:18:00,000 COLLAPSED, THE STOCKHOLDERS WILL 4955 03:18:00,001 --> 03:18:01,000 BE WIPED OUT, THE UNSECURED 4956 03:18:01,001 --> 03:18:03,000 BONDHOLDERS WILL BE WIPED OUT 4957 03:18:03,001 --> 03:18:04,000 AND THE INSTITUTION WILL BE 4958 03:18:04,001 --> 03:18:05,000 RESOLVED UNDER THIS BILL. 4959 03:18:05,001 --> 03:18:08,000 AND THAT'S POSITIVE. 4960 03:18:08,001 --> 03:18:11,000 BECAUSE WE DO NOT WANT TO SEND 4961 03:18:11,001 --> 03:18:13,000 TO THE MARKETS A SIGNAL THAT THE 4962 03:18:13,001 --> 03:18:14,000 AMERICAN TAXPAYER'S GOING TO 4963 03:18:14,001 --> 03:18:16,000 STAND BEHIND INSTITUTIONS WHICH 4964 03:18:16,001 --> 03:18:19,000 ARE SIMPLY LARGE. 4965 03:18:19,001 --> 03:18:21,000 THAT PERVERTS CAPITAL IN THE 4966 03:18:21,001 --> 03:18:23,000 MARKETS, IT PERVERTS FLOW O 4967 03:18:23,001 --> 03:18:25,000 ECONOMIC ACTIVITY IN THE MARKETS 4968 03:18:25,001 --> 03:18:27,000 WHEN PEOPLE THINK THAT THERE IS 4969 03:18:27,001 --> 03:18:28,000 THAT SORT OF GUARANTEE STANDING 4970 03:18:28,001 --> 03:18:29,000 BEHIND CERTAIN INSTITUTIONS IN 4971 03:18:29,001 --> 03:18:31,000 THE GOVERNMENT. 4972 03:18:31,001 --> 03:18:33,000 I THINK THAT PROGRESS WAS MADE 4973 03:18:33,001 --> 03:18:36,000 ON THIS RESOLUTION. 4974 03:18:36,001 --> 03:18:37,000 UNFORTUNATELY, THE NUMBER -- THE 4975 03:18:37,001 --> 03:18:38,000 OTHER AREAS TO DO SOMETHING 4976 03:18:38,001 --> 03:18:39,000 REALLY CONSTRUCTIVE WAS NOT 4977 03:18:39,001 --> 03:18:42,000 ACCOMPLISHED. 4978 03:18:42,001 --> 03:18:43,000 IN FACT, IN MY OPINION, THERE 4979 03:18:43,001 --> 03:18:47,000 WILL BE RESULTS FROM THIS BILL 4980 03:18:47,001 --> 03:18:49,000 WHICH WILL CAUSE US TO SEE A 4981 03:18:49,001 --> 03:18:50,000 NEGATIVE EFFECT FROM THIS BILL. 4982 03:18:50,001 --> 03:18:52,000 THE MOST NEGATIVE EFFECT THAT I 4983 03:18:52,001 --> 03:18:53,000 THIN 4984 03:18:53,001 --> 03:18:55,000 LIE IN TWO AREAS. 4985 03:18:55,001 --> 03:18:56,000 FIRST, IS IN THE AREA OF 4986 03:18:56,001 --> 03:18:57,000 FORMATION OF CREDIT. 4987 03:18:57,001 --> 03:18:59,000 IT'S VERY OBVIOUS THAT UNDER 4988 03:18:59,001 --> 03:19:01,000 THIS BILL THERE IS GOING TO BE A 4989 03:19:01,001 --> 03:19:02,000 VERY SIGNIFICANT CONTRACTION AND 4990 03:19:02,001 --> 03:19:04,000 CREDIT IN THIS COUNTRY AS WE 4991 03:19:04,001 --> 03:19:05,000 HEAD INTO THE NEXT YR, TWO 4992 03:19:05,001 --> 03:19:07,000 YEARS, MAYBE EVEN THREE YEARS. 4993 03:19:07,001 --> 03:19:08,000 NOW WE'RE IN A TOUGH FISCAL TIME 4994 03:19:08,001 --> 03:19:11,000 RIGHT NOW. 4995 03:19:11,001 --> 03:19:13,000 WE'RE -- IT'S VERY DIFFICULT 4996 03:19:13,001 --> 03:19:15,000 STILL ON MAIN STREET AMERICA TO GET CREDIT. 4997 03:19:15,001 --> 03:19:16,000 THE ECONOMY IS SW. 4998 03:19:16,001 --> 03:19:20,000 WE SHOULD NOT BE PASSING A BILL 4999 03:19:20,001 --> 03:19:21,000 WHICH IS GOING TO SIGNIFICANTLY 5000 03:19:21,001 --> 03:19:23,000 DAMPEN DOWN CREDIT, BUT IT WILL. 5001 03:19:23,001 --> 03:19:25,000 THIS BILL WILL AND IT WILL FOR 5002 03:19:25,001 --> 03:19:26,000 THREE REASONS. 5003 03:19:26,001 --> 03:19:28,000 FIRST, THE DERIVATES LANGUAG 5004 03:19:28,001 --> 03:19:30,000 IN THIS BILL IS NOT WELL THOUGHTOUT. 5005 03:19:30,001 --> 03:19:31,000 IT JUST ISN'T. 5006 03:19:31,001 --> 03:19:33,000 AND -- MOST PEOPLE DON'T 5007 03:19:33,001 --> 03:19:34,000 UNDERSTAND WHAT DERIVATIVES ARE. 5008 03:19:34,001 --> 03:19:36,000 LET'S DESCRIBE THEM AS THE 5009 03:19:36,001 --> 03:19:37,000 GREASE THAT GETS CREDIT GROWING 5010 03:19:37,001 --> 03:19:38,000 IN THIS COUNTRY. 5011 03:19:38,001 --> 03:19:40,000 IT'S BASICALLY INSURANCE 5012 03:19:40,001 --> 03:19:42,000 PRODUCTS THAT ALLOW PEOPLE TO DO 5013 03:19:42,001 --> 03:19:43,000 BUSINESS AND MAKE SURE THAT THEY 5014 03:19:43,001 --> 03:19:45,000 CAN INSURE OVER THE RISKS THAT 5015 03:19:45,001 --> 03:19:47,000 THEY HAVE IN BUSINESS. 5016 03:19:47,001 --> 03:19:49,000 AND THIS BILL CREATES A NEW 5017 03:19:49,001 --> 03:19:50,000 REGIME FOR HOW WE HANDLE 5018 03:19:50,001 --> 03:19:52,000 DERIVATIVES IN THIS COUNTRY. 5019 03:19:52,001 --> 03:19:54,000 THE REGIME IT CREATES RATHER 5020 03:19:54,001 --> 03:19:56,000 THAN MAKING DERIVATIVES MORE 5021 03:19:56,001 --> 03:19:58,000 TRANSPARENT AND SOUNDER, WHICH 5022 03:19:58,001 --> 03:20:00,000 IS WHAT OUR GOAL SHOULD HAVE 5023 03:20:00,001 --> 03:20:02,000 BEEN, WHICH COULD HAVE BEEN DONE 5024 03:20:02,001 --> 03:20:04,000 VERY EASILY BY GIVING -- MAKING 5025 03:20:04,001 --> 03:20:06,000 SURE THAT MOST DERIVATIVES WERE 5026 03:20:06,001 --> 03:20:07,000 ON OVER THE -- OVER-THE-COUNTER 5027 03:20:07,001 --> 03:20:10,000 EXCHANGES AND WENT THROUGH 5028 03:20:10,001 --> 03:20:12,000 CLEARING HOUSES, I MEAN, AND HAD 5029 03:20:12,001 --> 03:20:15,000 ADEQUATE MARGIN BETWEEN THEM, 5030 03:20:15,001 --> 03:20:17,000 ADEQUATE LIQUIDITY BIND THEM AND 5031 03:20:17,001 --> 03:20:18,000 REPORTED IMMEDIATELY TO THE 5032 03:20:18,001 --> 03:20:19,000 REGULATORY AGENCIES TO WHAT THEY 5033 03:20:19,001 --> 03:20:21,000 WERE DOING. 5034 03:20:21,001 --> 03:20:22,000 DIDN'T INVOLVE A LOT OF 5035 03:20:22,001 --> 03:20:23,000 COMPLICATION, JUST INVOLVED THE 5036 03:20:23,001 --> 03:20:24,000 CHANGING OF THE RULES OF THE 5037 03:20:24,001 --> 03:20:25,000 ROAD. 5038 03:20:25,001 --> 03:20:26,000 INSTEAD OF DOING THAT, WE 5039 03:20:26,001 --> 03:20:28,000 CHANGED THE ENTIRE PROCESS. 5040 03:20:28,001 --> 03:20:30,000 IN CHANGING THE ENTIRE PROCESS, 5041 03:20:30,001 --> 03:20:32,000 WE ARE BASICALLY GOING TO 5042 03:20:32,001 --> 03:20:34,000 CONTRACT SIGNIFICANTLY THE 5043 03:20:34,001 --> 03:20:36,000 AVAILABLITY OF THESE PRODUCTS TO 5044 03:20:36,001 --> 03:20:38,000 BASICALLY FUND AND TO BE THE 5045 03:20:38,001 --> 03:20:40,000 ENGINE OR THE -- THE GREASE OR 5046 03:20:40,001 --> 03:20:42,000 THE -- THE LUBRICANT FOR THE 5047 03:20:42,001 --> 03:20:45,000 ABILITY OF A LOT OF AMERICAN 5048 03:20:45,001 --> 03:20:47,000 BUSINESS TO DO BUSINESS. 5049 03:20:47,001 --> 03:20:48,000 END USERS IN THIS COUNTRY WHO 5050 03:20:48,001 --> 03:20:52,000 USE DERIVATIVES ARE GOING TO 5051 03:20:52,001 --> 03:20:53,000 FIND IT VERY HARD TO HAVE AN 5052 03:20:53,001 --> 03:20:54,000 EXEMPTION. 5053 03:20:54,001 --> 03:20:55,000 THEY'RE BASICALLY GOING TO HAVE 5054 03:20:55,001 --> 03:20:58,000 TO PUT UP CAPITAL, THEY'RE GOING 5055 03:20:58,001 --> 03:21:00,000 TO HAVE TO PUT UP MARGIN, 5056 03:21:00,001 --> 03:21:01,000 SOMETHING THEY DON'T DO TODAY ON 5057 03:21:01,001 --> 03:21:02,000 COMMERCIAL DERIVATIVE PRODUCTS 5058 03:21:02,001 --> 03:21:04,000 AND THAT'S GOING TO CAUSE THEM 5059 03:21:04,001 --> 03:21:06,000 TO CONTRACT THEIR BUSINESS OR 5060 03:21:06,001 --> 03:21:08,000 THEY'RE GOING TO HAVE TO GO OVERSEAS. 5061 03:21:08,001 --> 03:21:09,000 BELIEVE ME, THERE'S A VIBRANT 5062 03:21:09,001 --> 03:21:12,000 MARKET IN DERIVATIVES OVERSEAS 5063 03:21:12,001 --> 03:21:13,000 AN THEY'LL GO TO LONDON AND THIS 5064 03:21:13,001 --> 03:21:16,000 BUSINESS WILL END UP OFFSHORE. 5065 03:21:16,001 --> 03:21:17,000 AND THEN YOU HAVE A PUSH TO PUT 5066 03:21:17,001 --> 03:21:18,000 EVERYTHING ON AN EXCHANGE. 5067 03:21:18,001 --> 03:21:20,000 THERE ARE A LOT OF DERIVATIVES 5068 03:21:20,001 --> 03:21:23,000 THAT OBVIOUSLY SHOULD GO THROUGH 5069 03:21:23,001 --> 03:21:24,000 CLEARING HOUSES BUT ARE TOO 5070 03:21:24,001 --> 03:21:26,000 CUSTOMIZED TO GO ON EXCHANGES 5071 03:21:26,001 --> 03:21:28,000 AND YOU'RE GOING TO END UP 5072 03:21:28,001 --> 03:21:29,000 INEVITABLY WITH A CONTRACTION IN 5073 03:21:29,001 --> 03:21:30,000 THE DERIVATIVES MARKET AS A 5074 03:21:30,001 --> 03:21:33,000 RESULT OF THAT. 5075 03:21:33,001 --> 03:21:34,000 AND THEN YOU HAVE THE SWAP DESK 5076 03:21:34,001 --> 03:21:35,000 INITIATIVE WHICH WAS A PUNITIVE?? 5077 03:21:35,001 --> 03:21:37,000 EXERCISE IN MY OPINION, IT'S 5078 03:21:37,001 --> 03:21:38,000 GOING TO ACCOMPLISH VIRTUALLY 5079 03:21:38,001 --> 03:21:40,000 NOTHING IN THE AREA OF MAKING 5080 03:21:40,001 --> 03:21:43,000 THE SYSTEM SOUNDER OR MORE STABLE. 5081 03:21:43,001 --> 03:21:45,000 BUT WHAT IT WILL DO IS MOVE A 5082 03:21:45,001 --> 03:21:49,000 LARGE SECTION OF DERIVATIVE 5083 03:21:49,001 --> 03:21:50,000 ACTIVITY, ESPECIALLY THE CDS 5084 03:21:50,001 --> 03:21:52,000 MARKETS OFFSHORE. 5085 03:21:52,001 --> 03:21:53,000 THEY WILL NOT BE DONE HERE ANY 5086 03:21:53,001 --> 03:21:55,000 LONGER, BANKS, FINANCIAL HOUSES 5087 03:21:55,001 --> 03:21:56,000 WHICH HAVE 5088 03:21:56,001 --> 03:21:58,000 THESE INSTRUMENTS ARE NOT GOING 5089 03:21:58,001 --> 03:22:00,000 TO PUT UP THE CAPITAL TO WRITE 5090 03:22:00,001 --> 03:22:01,000 THEM BECAUSE THEY DON'T GET A 5091 03:22:01,001 --> 03:22:02,000 RETURN THAT MAKES IT WORTH IT TO 5092 03:22:02,001 --> 03:22:04,000 THEM. 5093 03:22:04,001 --> 03:22:07,000 AND I GUARANTEE YOU THAT WE ARE 5094 03:22:07,001 --> 03:22:09,000 GOING TO SEE A MASSIVE 5095 03:22:09,001 --> 03:22:11,000 CONTRACTION, IN A NUMBER OF DERIVATIVE MARKETS AS A RESULT 5096 03:22:11,001 --> 03:22:14,000 OF THE SWAP DESK INITIATIVE 5097 03:22:14,001 --> 03:22:15,000 WHICH WAS MORE OF A POLITICAL 5098 03:22:15,001 --> 03:22:19,000 INITIATIVE THAN SUBSTANTIVE INITIATIVE. 5099 03:22:19,001 --> 03:22:20,000 IT IS COUNTERPRODUCTIVE. 5100 03:22:20,001 --> 03:22:22,000 AND WHAT IT'S GOING TO DO IS 5101 03:22:22,001 --> 03:22:24,000 MOVE OVERSEAS A LOT OF PRODUCT 5102 03:22:24,001 --> 03:22:25,000 THAT WE DO HERE AND IT IS GOING 5103 03:22:25,001 --> 03:22:27,000 TO MAKE IT HARDER FOR AMERICA TO 5104 03:22:27,001 --> 03:22:29,000 BE COMPETITIVE AND FOR FINANCIAL 5105 03:22:29,001 --> 03:22:30,000 SERVICE INDUSTRIES TO BE 5106 03:22:30,001 --> 03:22:33,000 COMPETITIVE HERE IN THE UNITED STATES. 5107 03:22:33,001 --> 03:22:34,000 THAT WILL CAUSE A CONTRACTION IN 5108 03:22:34,001 --> 03:22:35,000 MY OPINION. 5109 03:22:35,001 --> 03:22:38,000 THE ESTIMATES 5110 03:22:38,001 --> 03:22:39,000 ESTIMATES ARE AS HIGH AS 5111 03:22:39,001 --> 03:22:40,000 THREE-QUARTERS OF A TRILLION 5112 03:22:40,001 --> 03:22:44,000 DOLLARS. 5113 03:22:44,001 --> 03:22:45,000 ON T TOP OF THAT YOU HAVE THE 5114 03:22:45,001 --> 03:22:46,000 ISSUE OF THE NEW CAPITAL RULES 5115 03:22:46,001 --> 03:22:49,000 IN THIS BILL. 5116 03:22:49,001 --> 03:22:50,000 NOW, IT REALLY ISN'T 5117 03:22:50,001 --> 03:22:52,000 CONSTRUCTIVE FOR THE CONGRESS TO 5118 03:22:52,001 --> 03:22:54,000 SET ARBITRARY CAPITAL RULES. 5119 03:22:54,001 --> 03:22:55,000 THAT SHOULD BE LEFT TO THE 5120 03:22:55,001 --> 03:22:56,000 REGULATORS. 5121 03:22:56,001 --> 03:22:57,000 BUT THIS BILL PRETTY MUCH DOES 5122 03:22:57,001 --> 03:22:59,000 THAT. 5123 03:22:59,001 --> 03:23:01,000 AS A RESULT A LOT OF THE 5124 03:23:01,001 --> 03:23:03,000 MIDDLE-SIZED BANKS, NOT THE 5125 03:23:03,001 --> 03:23:06,000 LARGER BANKS, BUT THE MIDDLE-SIZED BANKS WILL FINE 5126 03:23:06,001 --> 03:23:09,000 THAT THEY'RE UNDER TREMENDOUS 5127 03:23:09,001 --> 03:23:10,000 PRESSURE AS THE TIER ONE CAPITAL 5128 03:23:10,001 --> 03:23:11,000 HAS TO BE RESTRUCTURED. 5129 03:23:11,001 --> 03:23:13,000 AND THIS IS NOT A GOOD IDEA. 5130 03:23:13,001 --> 03:23:15,000 IT IS JU 5131 03:23:15,001 --> 03:23:17,000 AS A PRACTICAL MATTER YOU'RE 5132 03:23:17,001 --> 03:23:20,000 GOING TO CAUSE A CONTRACTION IN 5133 03:23:20,001 --> 03:23:22,000 THE MARKET OF CAPITAL, OF CREDIT 5134 03:23:22,001 --> 03:23:23,000 AS BANKS GROW THEIR CAPITAL, 5135 03:23:23,001 --> 03:23:24,000 THEY'RE GOING TO HAVE TO 5136 03:23:24,001 --> 03:23:26,000 CONTRACT CREDIT. 5137 03:23:26,001 --> 03:23:27,000 WHEN A BANK -- WHEN A BANK HAS 5138 03:23:27,001 --> 03:23:29,000 TO GET MONEY BACK IN ORDER TO 5139 03:23:29,001 --> 03:23:31,000 BUILD ITS CAPITAL POSITION UP, 5140 03:23:31,001 --> 03:23:33,000 IT DOESN'T GO TO ITS BAD LOANS. 5141 03:23:33,001 --> 03:23:35,000 THE BAD LOANS AREN'T PERFORMING. 5142 03:23:35,001 --> 03:23:36,000 IT GOES TO ITS GOOD LOANS. 5143 03:23:36,001 --> 03:23:38,000 AND IT DOESN'T LEND TO THEM OR 5144 03:23:38,001 --> 03:23:40,000 IT SAYS WE'RE GOING TO DRAW DOWN 5145 03:23:40,001 --> 03:23:42,000 YOUR LINE OF CREDIT. 5146 03:23:42,001 --> 03:23:44,000 GET CAPITAL IN. 5147 03:23:44,001 --> 03:23:46,000 AND THAT'S WHAT WILL HAPPEN. 5148 03:23:46,001 --> 03:23:48,000 WE'LL SEE CAPITAL ARE CONTRACT THERE. 5149 03:23:48,001 --> 03:23:50,000 ON TOP OF 5150 03:23:50,001 --> 03:23:51,000 VOLCKER RULE, IN CONCEPT, IT'S A 5151 03:23:51,001 --> 03:23:53,000 GOOD IDEA. 5152 03:23:53,001 --> 03:23:55,000 SHOULD NEVER BE ALLOWED -- YOU 5153 03:23:55,001 --> 03:23:59,000 SHOULD NOTAVE BANKS USING 5154 03:23:59,001 --> 03:24:01,000 INSURED DEPOSITS TO DO PROPRIETY ACTIVITY. 5155 03:24:01,001 --> 03:24:03,000 STRAINING OUT WHAT THIS VOLCKER 5156 03:24:03,001 --> 03:24:05,000 RULE MEANS WIL TAKE A WHILE, IT 5157 03:24:05,001 --> 03:24:06,000 WILL TAKE A YEAR OR TWO YEARS 5158 03:24:06,001 --> 03:24:08,000 BEFORE ANYBODY CAN SORT IT OUT 5159 03:24:08,001 --> 03:24:10,000 AND WHAT IT REALLY MEANS AND FOR 5160 03:24:10,001 --> 03:24:11,000 THE REGULATION THAT'S COME DOWN 5161 03:24:11,001 --> 03:24:14,000 TO DEFINE IT. 5162 03:24:14,001 --> 03:24:15,000 YOU WILL HAVE PERIOD OF 5163 03:24:15,001 --> 03:24:16,000 UNCERTAINTY AND THIS LEADS TO 5164 03:24:16,001 --> 03:24:17,000 LESS CREDIT AVAILABLE AND THIS 5165 03:24:17,001 --> 03:24:19,000 IS A SITUATION WHERE THE 5166 03:24:19,001 --> 03:24:20,000 INTERNATIONAL BANKS WERE THE 5167 03:24:20,001 --> 03:24:21,000 WINNERS AND THE DOMESTIC BANKS 5168 03:24:21,001 --> 03:24:22,000 ARE THE LOSERS BECAUSE THE 5169 03:24:22,001 --> 03:24:25,000 INTERNATIONAL BANKS ARE GOING TO 5170 03:24:25,001 --> 03:24:26,000 BE ABLE TO GO AND DO THE SAME 5171 03:24:26,001 --> 03:24:30,000 BUSINESS, THE PROPRIETY TRADING 5172 03:24:30,001 --> 03:24:32,000 IN LONDON OR IF THEY'RE BASED IN 5173 03:24:32,001 --> 03:24:34,000 SINGAPORE IN THEY'RE BASED IN 5174 03:24:34,001 --> 03:24:35,000 SINGAPORE, OR TOKYO IF THEY'RE 5175 03:24:35,001 --> 03:24:37,000 BASED IN TOKYO, BUT THE AMERICAN 5176 03:24:37,001 --> 03:24:39,000 BANKS WITH WHICH THEY COMPETE 5177 03:24:39,001 --> 03:24:40,000 WITH ARE NOT GOING TO BE ABLE TO 5178 03:24:40,001 --> 03:24:42,000 DO IT. 5179 03:24:42,001 --> 03:24:43,000 AS A PRACTICAL MATTER THAT'S 5180 03:24:43,001 --> 03:24:45,000 WHAT THIS BILL DOES. 5181 03:24:45,001 --> 03:24:47,000 WE WILL END UP WITH A TENTATIVENESS IN THE MARKETS AS 5182 03:24:47,001 --> 03:24:48,000 TO WHAT THEY'RE SUPPOSED TO BE 5183 03:24:48,001 --> 03:24:50,000 DOING AND WHAT THEY CAN DO IN 5184 03:24:50,001 --> 03:24:52,000 THE AREA RELATIVE TO THE VOLCKER 5185 03:24:52,001 --> 03:24:54,000 RULE AND THIS IS GOING CREATE 5186 03:24:54,001 --> 03:24:56,000 FURTHER CREDIT CONTRACTION. 5187 03:24:56,001 --> 03:24:58,000 MY GUESS IS WHEN YOU ADD IT ALL 5188 03:24:58,001 --> 03:25:01,000 TOGETHER THIS BILL WILL LEAD TO 5189 03:25:01,001 --> 03:25:02,000 A CREDIT CONTRACTI 5190 03:25:02,001 --> 03:25:05,000 PROBABLY $1 TRILLION OR MORE IN OUR -- IN OUR ECONOMY. 5191 03:25:05,001 --> 03:25:07,000 WHAT DOES THAT TRANSLATE 5192 03:25:07,001 --> 03:25:08,000 IT TRANSLATES INTO FEWER JOBS, 5193 03:25:08,001 --> 03:25:10,000 LESSER ECONOMIC ACTIVITY AND IT 5194 03:25:10,001 --> 03:25:11,000 DIDN'T HAVE TO HAPPEN THIS WAY. 5195 03:25:11,001 --> 03:25:13,000 I MEAN, THIS COULD HAVE BEEN 5196 03:25:13,001 --> 03:25:15,000 DONEN A WAY THAT WOULD HAVE 5197 03:25:15,001 --> 03:25:16,000 BEEN CLEARER, WHERE THE CLARITY 5198 03:25:16,001 --> 03:25:19,000 WOULD HAVE BEEN GREATER AND 5199 03:25:19,001 --> 03:25:21,000 WHERE YOU WOULD NOT HAVE HAD TO 5200 03:25:21,001 --> 03:25:23,000 TAKE ARBITRARY ACTION WHICH IS 5201 03:25:23,001 --> 03:25:24,000 MORE POLITICAL THAN SUBSTANTIVE 5202 03:25:24,001 --> 03:25:26,000 TO ADDRESS THE PROBLEMS OF OUR 5203 03:25:26,001 --> 03:25:27,000 INDUSTRY WHICH DID EXIST AND 5204 03:25:27,001 --> 03:25:31,000 SHOULD HAVE BEEN ADDRESSED. 5205 03:25:31,001 --> 03:25:33,000 ANOTHER AREA OF CONCERN IS THIS CONSUMERGENCY. 5206 03:25:33,001 --> 03:25:34,000 CONSUMER PROTECTION IS CRITICAL. 5207 03:25:34,001 --> 03:25:36,000 WE ALL AGREE TO THAT. 5208 03:25:36,001 --> 03:25:37,000 WHAT WE PROPOSE ON OUR SIDE OF 5209 03:25:37,001 --> 03:25:38,000 THE AISLE WAS THAT YOU LINK 5210 03:25:38,001 --> 03:25:41,000 CONSUMERROTECTION AND SAFETY 5211 03:25:41,001 --> 03:25:42,000 AND SOUNDLESS AT THE SAME -- 5212 03:25:42,001 --> 03:25:43,000 SOUNDNESS AT THE SAME LEVEL OF 5213 03:25:43,001 --> 03:25:46,000 RESPONSIBILITY AND IN THE SAME 5214 03:25:46,001 --> 03:25:48,000 LEVEL OF AUTHORITY WITHIN THE 5215 03:25:48,001 --> 03:25:55,000 ENTIRE BANK REGULATORY SYSTEM. 5216 03:25:55,001 --> 03:25:57,000 SO THAT THE PRUDENTIAL -- THE 5217 03:25:57,001 --> 03:25:59,000 REGULATOR WHEN THEY REGULATE A 5218 03:25:59,001 --> 03:26:01,000 BANK AND CHECK IT FOR SOUNDNESS 5219 03:26:01,001 --> 03:26:02,000 THEY HAVE THE SAME STANDARD OF 5220 03:26:02,001 --> 03:26:04,000 IMPORTANCE PLACED ON MAKING SURE 5221 03:26:04,001 --> 03:26:05,000 THAT THE CONSUMER IS PROTECTED 5222 03:26:05,001 --> 03:26:06,000 IN THE WAY THAT THAT BANK DEALS 5223 03:26:06,001 --> 03:26:07,000 WITH THE CONSUMERS. 5224 03:26:07,001 --> 03:26:08,000 THAT'S THE WAY IT SHOULD BE 5225 03:26:08,001 --> 03:26:10,000 DONE. 5226 03:26:10,001 --> 03:26:12,000 WHAT THIS BILL DID, LINKED THE 5227 03:26:12,001 --> 03:26:14,000 TWO, BECAUSE THE REGULATOR THAT 5228 03:26:14,001 --> 03:26:17,000 REGULATES THE BANK FOR SAFETY 5229 03:26:17,001 --> 03:26:18,000 AND SOUNDNESS IS THE LOGICAL 5230 03:26:18,001 --> 03:26:20,000 REGULATOR TO REGULATE THE BANK 5231 03:26:20,001 --> 03:26:21,000 TO MAKE SURE THEY'RE COMPLYING 5232 03:26:21,001 --> 03:26:24,000 WITH CSUMERS' NEEDS. 5233 03:26:24,001 --> 03:26:26,000 WHAT THIS BILL DOES IS SETS UP A 5234 03:26:26,001 --> 03:26:27,000 BRAND-NEW AGENCY, WHICH IT CALLS 5235 03:26:27,001 --> 03:26:29,000 CONSUMER PROTECTION, WHICH WON'T 5236 03:26:29,001 --> 03:26:31,000 BE AT ALL IN MY OPINION. 5237 03:26:31,001 --> 03:26:35,000 IT WILL BE THE AGENCY FOR 5238 03:26:35,001 --> 03:26:38,000 POLITICAL CORRECTNESS OR 5239 03:26:38,001 --> 03:26:40,000 CORRECTING SOCIALLY POLITICAL 5240 03:26:40,001 --> 03:26:43,000 JUSTICE, ISSUES OF POLITICAL JUSTICE THAT SOMEBODY'S 5241 03:26:43,001 --> 03:26:45,000 CONCERNED ABOUT. 5242 03:26:45,001 --> 03:26:47,000 AND IT 5243 03:26:47,001 --> 03:26:48,000 EVERYBODY ELSE. 5244 03:26:48,001 --> 03:26:51,000 IT DOESN'T ANSWER TO ANYONE 5245 03:26:51,001 --> 03:26:55,000 EXCEPT ON A VERY LIMITED AND 5246 03:26:55,001 --> 03:26:56,000 NARROW WAY TO THE SYSTEMIC RISK 5247 03:26:56,001 --> 03:26:57,000 COUNSELLE. 5248 03:26:57,001 --> 03:27:01,000 IT IS A -- COUNCIL. 5249 03:27:01,001 --> 03:27:06,000 IT IS A SINGLE PERSON WITH A 5250 03:27:06,001 --> 03:27:10,000 AN $850 MILLION -- MILLION 5251 03:27:10,001 --> 03:27:13,000 DOLLARNOVERSIGHTED REVENUE 5252 03:27:13,001 --> 03:27:14,000 STREAM, NO APPROPRIATIONS, 5253 03:27:14,001 --> 03:27:17,000 BASICALLY THE PERSON JUST GETS 5254 03:27:17,001 --> 03:27:18,000 THE MONEY AND CAN GO OFF AND DO 5255 03:27:18,001 --> 03:27:19,000 WHATEVER THEY WANT. 5256 03:27:19,001 --> 03:27:21,000 WELL, THERE'S NO RELATIONSHIP 5257 03:27:21,001 --> 03:27:22,000 BETWEEN THIS PERSON AND THE 5258 03:27:22,001 --> 03:27:23,000 PRUDENTIAL REGULATOR, SO WHAT 5259 03:27:23,001 --> 03:27:26,000 YOU'RE GOING TO HAVE HERE IS AN 5260 03:27:26,001 --> 03:27:28,000 INDIVIDUAL WHO MAY GET ON 5261 03:27:28,001 --> 03:27:32,000 CAUSE OF SOCIAL JUSTICE THAT 5262 03:27:32,001 --> 03:27:33,000 SAYS, X, Y, Z GROUP ISN'T 5263 03:27:33,001 --> 03:27:37,000 GETTING ENOUGH LOANS AND THEY 5264 03:27:37,001 --> 03:27:39,000 SAY, ALL RIGHT, YOU HAVE TO SEND 5265 03:27:39,001 --> 03:27:41,000 X, Y, Z'S GROUP MORE LOAN. 5266 03:27:41,001 --> 03:27:43,000 YOU MIGHT HAVE THE LOCAL 5267 03:27:43,001 --> 03:27:44,000 REGULATOR SAYING TO THE LOCAL 5268 03:27:44,001 --> 03:27:47,000 BANKS, REGIONAL BANKS, YOU CAN'T 5269 03:27:47,001 --> 03:27:48,000 LEND TO X, Y, Z GROUP BECAUSE WE 5270 03:27:48,001 --> 03:27:50,000 KNOW THEY'RE NOT GOING TO PAY 5271 03:27:50,001 --> 03:27:51,000 YOU BACK OR THEY'RE NOT GOING TO 5272 03:27:51,001 --> 03:27:52,000 PAY BACK AT A RATE THAT'S 5273 03:27:52,001 --> 03:27:55,000 REASONABLE. 5274 03:27:55,001 --> 03:27:56,000 AND SO YOU'RE GOING TO HAVE THIS 5275 03:27:56,001 --> 03:27:57,000 INHERENT CONFLICT. 5276 03:27:57,001 --> 03:27:58,000 WHAT'S GOING TO BE THE RESULT OF 5277 03:27:58,001 --> 03:27:59,000 THAT? 5278 03:27:59,001 --> 03:28:03,000 WELL,HE BANKS WILL PROBABLY 5279 03:28:03,001 --> 03:28:04,000 HAVE TO LEND TOHE X, Y, Z 5280 03:28:04,001 --> 03:28:06,000 GROUP, WHICH MEANS THE PEOPLE 5281 03:28:06,001 --> 03:28:08,000 WHO ARE BORE HEOING FROM THAT 5282 03:28:08,001 --> 03:28:09,000 BANK AND WILL PAY THEIR BANKS 5283 03:28:09,001 --> 03:28:10,000 BACK WILL HAVE TO PAY MORE 5284 03:28:10,001 --> 03:28:12,000 BECAUSE THE BANK HAS TO MAKE UP 5285 03:28:12,001 --> 03:28:14,000 FOR THE LOST OF REVENUES. 5286 03:28:14,001 --> 03:28:15,000 AS A RESULT THE COST OF CREDIT 5287 03:28:15,001 --> 03:28:16,000 WILL GO UP, ESPECIALLY FOR 5288 03:28:16,001 --> 03:28:18,000 INDIVIDUALS WHO ARE RESPONSIBLE 5289 03:28:18,001 --> 03:28:20,000 IN PAYING DOWN THEIR DEBTS AND 5290 03:28:20,001 --> 03:28:22,000 PAYING FOR THEIR CREDIT, PAYING 5291 03:28:22,001 --> 03:28:24,000 BACK THEIR LOANS AND YOU WILL 5292 03:28:24,001 --> 03:28:27,000 END UP WITH LAYER YES AND 5293 03:28:27,001 --> 03:28:29,000 LAYERS -- LAYERS AN 5294 03:28:29,001 --> 03:28:31,000 LAYERS OF CON FLINGTING 5295 03:28:31,001 --> 03:28:33,000 REGULATION, -- CONFLICTING 5296 03:28:33,001 --> 03:28:35,000 REGULATION, WHICH WILL COST THE 5297 03:28:35,001 --> 03:28:36,000 BANK SIGNIFICANT UNNECESSARY MONEY. 5298 03:28:36,001 --> 03:28:37,000 WHO WILL PAY FOR THAT? 5299 03:28:37,001 --> 03:28:39,000 YOU PAY FOR IT. 5300 03:28:39,001 --> 03:28:40,000 THE CONSUMER PAYSOR IT. 5301 03:28:40,001 --> 03:28:44,000 CLEARLY IT PASSES THROUGH. 5302 03:28:44,001 --> 03:28:46,000 THIS IS ONE OF THE GOLDBERG 5303 03:28:46,001 --> 03:28:47,000 IDEAS THAT COME OUT OF A 5304 03:28:47,001 --> 03:28:48,000 GOVERNMENT ENTITY. 5305 03:28:48,001 --> 03:28:51,000 THEY SAY, YOU KNOW, THE 5306 03:28:51,001 --> 03:28:52,000 GOVERNMENT PRODUCES A -- A CAMEL 5307 03:28:52,001 --> 03:28:53,000 WHEN IT IS SUPPOSED TO BE 5308 03:28:53,001 --> 03:28:55,000 PRODUCING A HORSE. 5309 03:28:55,001 --> 03:28:56,000 THERE'S JUST -- JUS A 5310 03:28:56,001 --> 03:28:57,000 DISCONNECT BETWEEN THE REALITY 5311 03:28:57,001 --> 03:29:01,000 OF WHAT YOU'RE SUPPOSED TO BE 5312 03:29:01,001 --> 03:29:03,000 DOING IN THE AREA OF PRODUCING 5313 03:29:03,001 --> 03:29:05,000 EFFECTIVE REGULATION RELATIVE TO 5314 03:29:05,001 --> 03:29:07,000 PROTECTING CONSUMERS AND WHAT 5315 03:29:07,001 --> 03:29:09,000 THIS BILL FINALLY ENDS UP DOING 5316 03:29:09,001 --> 03:29:12,000 AND WHAT I SUSPECT -- AND I 5317 03:29:12,001 --> 03:29:13,000 WON'T BE HERE TO OVERSEE IT OR 5318 03:29:13,001 --> 03:29:14,000 PARTICIPATE IN IT -- NOBODY GETS 5319 03:29:14,001 --> 03:29:17,000 TO OVERSEE IT. 5320 03:29:17,001 --> 03:29:18,000 IT IS NOT RESPONSIBLE TO THE 5321 03:29:18,001 --> 03:29:22,000 BANKING COMMITTEE OF THE SENATE 5322 03:29:22,001 --> 03:29:24,000 OR THE BANKING COMMITTEE OF THE HOUSE. 5323 03:29:24,001 --> 03:29:27,000 IT'S NOT RESPONSIBLE TO T FED. 5324 03:29:27,001 --> 03:29:30,000 TH 5325 03:29:30,001 --> 03:29:32,000 THE TERM CZAR IS THROWN AROUND A 5326 03:29:32,001 --> 03:29:34,000 LOT, BUT THIS PERSON IS THE TRUE 5327 03:29:34,001 --> 03:29:36,000 CZAR IN THE AREA OF ACTIVITY. 5328 03:29:36,001 --> 03:29:37,000 I SUSPECT THAT WE SEE THIS 5329 03:29:37,001 --> 03:29:39,000 AGENCY BECOME A CONTROVERSIAL 5330 03:29:39,001 --> 03:29:41,000 AGENCY WITH A VERY POLITICAL 5331 03:29:41,001 --> 03:29:44,000 SOCIAL JUSTICE TYPE OF AGENDA 5332 03:29:44,001 --> 03:29:45,000 NOT AN AGENDA AIMED AT PRIMARILY 5333 03:29:45,001 --> 03:29:46,000 PROTECTING CONSUMERS. 5334 03:29:46,001 --> 03:29:48,000 SO THAT'S A BIG PROBLEM WITH 5335 03:29:48,001 --> 03:29:50,000 THIS BILL. 5336 03:29:50,001 --> 03:29:52,000 THERE ARE A LOT OF OTHER ISSUES 5337 03:29:52,001 --> 03:29:53,000 WITH THIS BILL. 5338 03:29:53,001 --> 03:29:55,000 AT THE MARGIN, THE ISSUE OF HOW 5339 03:29:55,001 --> 03:29:58,000 WE RESTRUCTURE THE REGULATORY 5340 03:29:58,001 --> 03:30:03,000 REGIMES IS OF SOME CONCERN. 5341 03:30:03,001 --> 03:30:05,000 THE WHOLE QUESTION OF HOW 5342 03:30:05,001 --> 03:30:06,000 STOCKHOLDERS' RIGHTS IS IN THIS 5343 03:30:06,001 --> 03:30:10,000 BILL AND PROBABLY NOT RELEVANT 5344 03:30:10,001 --> 03:30:12,000 TO THE BANKING ISSUE SO MUCH, 5345 03:30:12,001 --> 03:30:15,000 WHICH COULD HAVE BEEN IMPROVED ON. 5346 03:30:15,001 --> 03:30:18,000 AND THE BILL OVERALL COULD HAVE 5347 03:30:18,001 --> 03:30:19,000 BEEN A MUCH BETTER PRODUCT, BUT 5348 03:30:19,001 --> 03:30:21,000 THE PRIMARY CONCERN THAT I HAVE 5349 03:30:21,001 --> 03:30:23,000 GOES BACK TO THIS ISSUE OF WHAT 5350 03:30:23,001 --> 03:30:26,000 WAVES THE ORIGINAL PURPOSE DSHES 5351 03:30:26,001 --> 03:30:27,000 WHAT WAS THE ORIGINAL PURPOSE? 5352 03:30:27,001 --> 03:30:29,000 TO PROTECT SYSTEMIC RISK IN THE 5353 03:30:29,001 --> 03:30:32,000 OUT YEAR AND MAKE SURE WE TO 5354 03:30:32,001 --> 03:30:33,000 INHAVE A STRONG AND VIBRANT 5355 03:30:33,001 --> 03:30:35,000 CREDIT MARKET FOR AMERICANS WHO 5356 03:30:35,001 --> 03:30:36,000 WANT TO TAKE 5357 03:30:36,001 --> 03:30:37,000 JOBS. 5358 03:30:37,001 --> 03:30:39,000 AND TWO MAJOR ISSUES WERE TOTALLY IGNORED IN THE BILL 5359 03:30:39,001 --> 03:30:41,000 WHICH WOULD ADDRESS THAT QUESTION. 5360 03:30:41,001 --> 03:30:44,000 WHAT DROVE THE EVENT OF THIS MELTDOWN? 5361 03:30:44,001 --> 03:30:45,000 WHAT CAUSED THIS FINANCIAL DOWNTURN? 5362 03:30:45,001 --> 03:30:47,000 IT WAS THE REAL ESTATE MARKET 5363 03:30:47,001 --> 03:30:49,000 AND THE WAY IT WAS BEING LENT 5364 03:30:49,001 --> 03:30:50,000 INTO. 5365 03:30:50,001 --> 03:30:53,000 AND TWO THINGS WERE THE BASIC 5366 03:30:53,001 --> 03:30:55,000 ENGINES OF THAT PROBLEM THAT 5367 03:30:55,001 --> 03:30:56,000 WERE GOVERNMENT-CONTROLLED. 5368 03:30:56,001 --> 03:30:58,000 ONE -- THERE WERE A LOT OF 5369 03:30:58,001 --> 03:30:59,000 THINGS WHICH WERE THE ENGINES, 5370 03:30:59,001 --> 03:31:01,000 THAT CAUSED T BUT THE TWO WHICH 5371 03:31:01,001 --> 03:31:03,000 WERE GOVERNMENT-CONTROLLED WAS, 5372 03:31:03,001 --> 03:31:05,000 ONE, UNDERWRITING STANDARDS, 5373 03:31:05,001 --> 03:31:07,000 BASICALLY WE DIVORCED 5374 03:31:07,001 --> 03:31:09,000 UNDERWRITING STANDARDS FROM THE 5375 03:31:09,001 --> 03:31:13,000 ISSUE OF WHETHER OR NOT A PERSON GOT A LOAN. 5376 03:31:13,001 --> 03:31:15,000 SO LOANS WERE BEING MADE ON 5377 03:31:15,001 --> 03:31:16,000 ASSETS WHICH 5378 03:31:16,001 --> 03:31:17,000 COST OF THE LOAN. 5379 03:31:17,001 --> 03:31:19,000 IT WAS PRESUMED THE ASSET WAS 5380 03:31:19,001 --> 03:31:21,000 GOING TO APPRECIATE, A HOME WAS 5381 03:31:21,001 --> 03:31:22,000 GOING TO ALWAYS APPRECIATE IN 5382 03:31:22,001 --> 03:31:24,000 THESE COMMUNITIES AND THEREFORE 5383 03:31:24,001 --> 03:31:26,000 THEY COULD LEND 100% OF THE 5384 03:31:26,001 --> 03:31:27,000 VALUTHAT HAVE HOME OR 105% OF 5385 03:31:27,001 --> 03:31:28,000 THE VALUE THAT HAVE LOAN AND 5386 03:31:28,001 --> 03:31:30,000 STRIL A SAFE LOAN. 5387 03:31:30,001 --> 03:31:31,000 THAT WAS A FOOLISH ASSUMPTION TO 5388 03:31:31,001 --> 03:31:32,000 SAY THE 5389 03:31:32,001 --> 03:31:34,000 AND, SECONDLY, WE DIDN'T LOOK AT 5390 03:31:34,001 --> 03:31:36,000 WHETHER OR NOT THE PERSON COULD 5391 03:31:36,001 --> 03:31:38,000 PA THE LOAN BACK. 5392 03:31:38,001 --> 03:31:40,000 WHEN THESE LOANS WERE MADE AT 5393 03:31:40,001 --> 03:31:45,000 ZERO INTEREST FOR A YEAR OR TWO 5394 03:31:45,001 --> 03:31:47,000 YEARS, BUT THEN THEY RESET A A 5395 03:31:47,001 --> 03:31:49,000 VERY UNREASONABLE INTEREST RATE 5396 03:31:49,001 --> 03:31:51,000 AND NOBODY LOOKATED AT WHETHER 5397 03:31:51,001 --> 03:31:52,000 THE PERSON COULD PAY THEM BACK. 5398 03:31:52,001 --> 03:31:54,000 THESE LOANS WERE NOT BEING MADE 5399 03:31:54,001 --> 03:31:55,000 FOR THE PURPOSE OF RECOVERING 5400 03:31:55,001 --> 03:31:58,000 THE LOAN. 5401 03:31:58,001 --> 03:31:59,000 THE SUBPRIME LOANS WERE -- AND 5402 03:31:59,001 --> 03:32:01,000 ALL LOANS WERE BEING MADE 5403 03:32:01,001 --> 03:32:02,000 BECAUSE THERE WERE FEES ON THE LOANS. 5404 03:32:02,001 --> 03:32:03,000 THE PEOPLE MAKING THE LOANS WERE 5405 03:32:03,001 --> 03:32:04,000 GETTING THE FEES. 5406 03:32:04,001 --> 03:32:06,000 THERE WAS A WHOLE COTTAGE 5407 03:32:06,001 --> 03:32:08,000 INDUSTRY ACTUALLY DOWN IN MIAMI 5408 03:32:08,001 --> 03:32:11,000 OF PEOPLE WHO JUST HAD 5409 03:32:11,001 --> 03:32:12,000 OUT OF PRISON WHO HAD FIGURED 5410 03:32:12,001 --> 03:32:16,000 THIS OUT WHILE THEY WERE IN 5411 03:32:16,001 --> 03:32:18,000 PRISON AND THEY DEVELOPED AN 5412 03:32:18,001 --> 03:32:20,000 ENTIRE COTTAGE I 5413 03:32:20,001 --> 03:32:21,000 FORMER PRISONERS ACTUALLY 5414 03:32:21,001 --> 03:32:24,000 GETTING BACK INTO T LOAN 5415 03:32:24,001 --> 03:32:27,000 BUSINESS AND MAKING THE FEES. 5416 03:32:27,001 --> 03:32:28,000 AND WHAT REALLY AGGRAVATED IT -- 5417 03:32:28,001 --> 03:32:31,000 FIRST WAS THE UNDERWRITING 5418 03:32:31,001 --> 03:32:33,000 STANDARDS -- WAS THE FACT THAT 5419 03:32:33,001 --> 03:32:35,000 THE LOANS GOT SECURITIZED. 5420 03:32:35,001 --> 03:32:38,000 THEY GOT PICKED UP BY FANNIE MAE 5421 03:32:38,001 --> 03:32:40,000 AND FREDDIE MAC WITH THE 5422 03:32:40,001 --> 03:32:41,000 UNDERSTANDING THAT FANNIE MAE 5423 03:32:41,001 --> 03:32:43,000 AND FREDDIE MAC WOULD ENSURE 5424 03:32:43,001 --> 03:32:45,000 THESE LOANS SO THAT IF YOU 5425 03:32:45,001 --> 03:32:46,000 BOUGHT ONE OF THESE LOANS, 5426 03:32:46,001 --> 03:32:47,000 SECURITIZED LOANS, FANNIE MAE 5427 03:32:47,001 --> 03:32:48,000 AND FREDDIE MAC WOULD BE 5428 03:32:48,001 --> 03:32:49,000 STANDING BEHIND IT. 5429 03:32:49,001 --> 03:32:52,000 EVEN THOUGH THE LOANS WERE NOT 5430 03:32:52,001 --> 03:32:54,000 VIABLE. 5431 03:32:54,001 --> 03:32:55,000 WELL, THIS BILL IGNORES BOTH OF 5432 03:32:55,001 --> 03:33:01,000 THOSE ISSUES. 5433 03:33:01,001 --> 03:33:03,000 IT THATS A VERY MARGINAL 5434 03:33:03,001 --> 03:33:06,000 LANGUAGE ON THE ISSUE OF UNDERWRITING P. 5435 03:33:06,001 --> 03:33:09,000 DOESN'T GET US BACK TO STANDARDS 5436 03:33:09,001 --> 03:33:10,000 THAT WOULD PROTECT US FROM 5437 03:33:10,001 --> 03:33:12,000 OVERAGGRESSIVE -- 5438 03:33:12,001 --> 03:33:14,000 PEOPLE SAY CANADA DIDN'T HAVE A 5439 03:33:14,001 --> 03:33:17,000 PROBLEM, AUSTRALIA DIDN'T HAVE A PROBLEM. WHY? 5440 03:33:17,001 --> 03:33:18,000 BECAUSE THEY REQUIRE PEOPLE TO 5441 03:33:18,001 --> 03:33:19,000 PUT "MAD MONEY" AND THEY REQUIRE 5442 03:33:19,001 --> 03:33:20,000 THAT PEOPLE WHO ARE BORROWING 5443 03:33:20,001 --> 03:33:21,000 ACTUALLY PAY THE MONEY BACK. 5444 03:33:21,001 --> 03:33:22,000 SEEMS LIKE A FAIRLY REASONABLE 5445 03:33:22,001 --> 03:33:24,000 THING TO REQUIREMENT BUT THIS 5446 03:33:24,001 --> 03:33:26,000 BILL IGNORES IT. 5447 03:33:26,001 --> 03:33:27,000 SECONDLY, THIS BILL DOES NOTHING 5448 03:33:27,001 --> 03:33:29,000 ABOUT FANNIE AR FREDDIE. 5449 03:33:29,001 --> 03:33:31,000 NOTHING. 5450 03:33:31,001 --> 03:33:32,000 I MEAN, YOU TALK ABOUT IGNORING 5451 03:33:32,001 --> 03:33:35,000 THE ELEPHANT IN THE ROOM, THIS 5452 03:33:35,001 --> 03:33:36,000 IS THE WHOLE HERD OF ELEPHANTS 5453 03:33:36,001 --> 03:33:37,000 IN THE ROOM. 5454 03:33:37,001 --> 03:33:40,000 THE AMERICAN TAXPAYER TODAY IS 5455 03:33:40,001 --> 03:33:43,000 ON THE HOOK FOR SOMETHING LIKE 5456 03:33:43,001 --> 03:33:46,000 $500 BILLION TO $1 TRILLION -- 5457 03:33:46,001 --> 03:33:47,000 THE ESTIMATES VAR 5458 03:33:47,001 --> 03:33:48,000 SOME PEOPLE STEY SAY IT IS EVEN 5459 03:33:48,001 --> 03:33:51,000 HIGHER THAN THAT. 5460 03:33:51,001 --> 03:33:56,000 THE AMERICAN TAXPAYER FOR BAD 5461 03:33:56,001 --> 03:33:58,000 LOANS, SECUR SECURITIZED BY FREDDIE 5462 03:33:58,001 --> 03:33:59,000 AND FANNIE THIS BILL DOES NOTHING. 5463 03:33:59,001 --> 03:34:00,000 THAT'S THE BIG OF THE PROBLEM 5464 03:34:00,001 --> 03:34:02,000 WE'VE. 5465 03:34:02,001 --> 03:34:03,000 NOT ONLY THE BIGGEST PROBLEMS 5466 03:34:03,001 --> 03:34:05,000 WE'VE, ONE OF THE PRIMARY 5467 03:34:05,001 --> 03:34:06,000 DRIVERS OF THE FINANCIAL 5468 03:34:06,001 --> 03:34:07,000 MELTDOWN, BUT IT IS THE BIGGEST 5469 03:34:07,001 --> 03:34:09,000 PROBLEM WE'VE GOING TOWARD. 5470 03:34:09,001 --> 03:34:10,000 AND THE ADMINISTRATION SAYS, OH, 5471 03:34:10,001 --> 03:34:12,000 WE'LL DO THAT NEXT YEAR. 5472 03:34:12,001 --> 03:34:13,000 IF YOU'RE GOING TO DO A 5473 03:34:13,001 --> 03:34:16,000 FINANCIAL REFORM BILL WITHOUT 5474 03:34:16,001 --> 03:34:18,000 DOING FREDDIE AND FANNIE, YOU 5475 03:34:18,001 --> 03:34:21,000 AREN'T DOING A FINANCIAL REFORM BILL AT ALL. 5476 03:34:21,001 --> 03:34:26,000 AND I WOULD APPLY THE SAME TO 5477 03:34:26,001 --> 03:34:28,000 THE ISSUE OF UNDERWRITING. 5478 03:34:28,001 --> 03:34:30,000 SO IN MY OPINION, THIS BILL HAS 5479 03:34:30,001 --> 03:34:33,000 SOME PLUSES. 5480 03:34:33,001 --> 03:34:34,000 AND I KNOW IT WAS WORKED VERY 5481 03:34:34,001 --> 03:34:36,000 HARD AND I ADMIRE THE EFFORTS OF 5482 03:34:36,001 --> 03:34:38,000 THE SENATOR FROM CONNECTICUT -- 5483 03:34:38,001 --> 03:34:40,000 AND ACTUALLY THE CHAIRMAN IN THE 5484 03:34:40,001 --> 03:34:43,000 HOUSE, SENATOR FRANK -- 5485 03:34:43,001 --> 03:34:44,000 CONGRESSMAN FRANK FROM 5486 03:34:44,001 --> 03:34:47,000 MASSACHUSETTS. 5487 03:34:47,001 --> 03:34:48,000 BUT THE NEGATIVES OF THIS BILL, 5488 03:34:48,001 --> 03:34:50,000 UNFORTUNATELY, ARE TOO 5489 03:34:50,001 --> 03:34:53,000 SIGNIFICANT TO IGNORE, 5490 03:34:53,001 --> 03:34:54,000 ESPECIALLY IN THE AREA OF THE 5491 03:34:54,001 --> 03:34:56,000 SHORT-TERM CREDIT CONTRACTION 5492 03:34:56,001 --> 03:34:58,000 THAT'S GOING TO OCCUR, THE 5493 03:34:58,001 --> 03:34:59,000 POORLY SUCTURED DERIVATIVES 5494 03:34:59,001 --> 03:35:01,000 LANGUAGE, THE CONSUMER 5495 03:35:01,001 --> 03:35:03,000 PROTECTION AGENCY, WHICH I THINK 5496 03:35:03,001 --> 03:35:04,000 IS GOING TO END UP BEING 5497 03:35:04,001 --> 03:35:07,000 COUNTERPRODUCTIVE TO CONSUMERS, 5498 03:35:07,001 --> 03:35:09,000 AND THE FAILURE TO TANK THE 5499 03:35:09,001 --> 03:35:11,000 FREDDIE MAC -- THE FREDDIE AND 5500 03:35:11,001 --> 03:35:13,000 MAN KNEE ISSUE AND THE -- THE 5501 03:35:13,001 --> 03:35:14,000 FREDDIE AND FANNIE ISSUE AND THE 5502 03:35:14,001 --> 03:35:15,000 FAILURE TO DO A STRONGER 5503 03:35:15,001 --> 03:35:16,000 UNDERWRITING STANDARD. 5504 03:35:16,001 --> 03:35:17,000 I REMAIN OPPOSED TO THIS BILL. 5505 03:35:17,001 --> 03:35:20,000 I UNDERSTAND IT IS GOING TO PASS 5506 03:35:20,001 --> 03:35:21,000 AND I HOPE THAT SOME OF NIGH 5507 03:35:21,001 --> 03:35:22,000 CONCERNS DON'T COME TO FRUITION, 5508 03:35:22,001 --> 03:35:23,000 BECAUSE IF THEY DO, 5509 03:35:23,001 --> 03:35:25,000 UNFORTUNATELY, THIS ECONOMY GOING TO BE SLOWED AND OUR 5510 03:35:25,001 --> 03:35:26,000 NATION WILL BE LESS VIABLE 5511 03:35:26,001 --> 03:35:28,000 ECONOMICALLY. 5512 03:35:28,001 --> 03:35:29,000 BUT I'M AFRAID THEY WILL COME TO FRUITION. 5513 03:35:29,001 --> 03:35:30,000 MR. PRESIDENT, I YIELD THE 5514 03:35:30,001 --> 03:35:31,000 FLOOR. 5515 03:35:31,001 --> 03:35:32,000 A SENATOR: MR. PRESIDENT? 5516 03:35:32,001 --> 03:35:33,000 THE PRESIDING OFFICER: IS NOT 5517 03:35:33,001 --> 03:35:34,000 FRR CONNECTICUT IS RECOGNIZED. 5518 03:35:34,001 --> 03:35:35,000 MR. DODD: MR. PRESIDE 5519 03:35:35,001 --> 03:35:38,000 JUST VERY BRIEFLY - 5520 03:35:38,001 --> 03:35:40,000 SEE MY OTHER COLLEAGUES HERE, INCLUDING SENATOR SPECTER AND 5521 03:35:40,001 --> 03:35:42,000 SENATOR CONRAD WHO WAN 5522 03:35:42,001 --> 03:35:44,000 HEARD -- BUT I WOULDN'T WANT M FRIEND FROM NEW HAMPSHIRE 5523 03:35:44,001 --> 03:35:45,000 BECAUSE WE'LL BOTH BE WALKING 5524 03:35:45,001 --> 03:35:47,000 OUT OTHIS CHAMBER IN ABOUT 5525 03:35:47,001 --> 03:35:48,000 FIVE MONTHS TOGETHER, AND LET ME 5526 03:35:48,001 --> 03:35:51,000 THANK HIM FOR HIS WORK. 5527 03:35:51,001 --> 03:35:53,000 GOING BACK 20-SOME-ODD MONTHS 5528 03:35:53,001 --> 03:35:55,000 AGO WHEN WE WERE INVOLVED IN THE 5529 03:35:55,001 --> 03:35:57,000 CRITICAL WEEKS, DAYS IN 5530 03:35:57,001 --> 03:35:59,000 SEPTEMBER AND OCTOBER. 5531 03:35:59,001 --> 03:36:01,000 JUDD GREGG WAS INVALUABLE IN 5532 03:36:01,001 --> 03:36:02,000 PUTTING TOGETHER A MOMENT HERE 5533 03:36:02,001 --> 03:36:04,000 THAT WHILE NOT TERRIBLY POPULAR 5534 03:36:04,001 --> 03:36:05,000 I THINK SAVED OUR ECONOMY AND 5535 03:36:05,001 --> 03:36:06,000 THE COUNTRY. 5536 03:36:06,001 --> 03:36:07,000 AND I WON'T ADDRESS ALL HIS 5537 03:36:07,001 --> 03:36:08,000 CONCERNS HERE. 5538 03:36:08,001 --> 03:36:10,000 WE'VE A DIFFERENT POINT OF VIEW 5539 03:36:10,001 --> 03:36:16,000 ON THE ISSUES HE'S RAISED. 5540 03:36:16,001 --> 03:36:18,000 THEY'RE NOT ILLEGITIMATE ISSUES. 5541 03:36:18,001 --> 03:36:19,000 HE HAS A DIFFERENT POINT OF VIEW 5542 03:36:19,001 --> 03:36:21,000 AND I RESPECT HIM FOR THAT. 5543 03:36:21,001 --> 03:36:22,000 I THANK HIM FOR HIS WORK ON THE BILL. 5544 03:36:22,001 --> 03:36:26,000 HE MADE A SIGNIFICANT 5545 03:36:26,001 --> 03:36:27,000 CONTRIBUTION TO THE EFFORT, AND 5546 03:36:27,001 --> 03:36:28,000 I THANK HIM FOR IT. 5547 03:36:28,001 --> 03:36:41,000 I SEE MY COLLEAGUE FROM PENNSYLVANIA HERE. 5548 03:36:41,001 --> 03:36:42,000 I YIELD THE FLOOR. 5549 03:36:42,001 --> 03:36:43,000 MR. SPECTER: MR. PRESIDENT? THE PRESIDING OFFICER: THE 5550 03:36:43,001 --> 03:36:45,000 SENATOR FROM PENNSYLVANIA IS 5551 03:36:45,001 --> 03:36:47,000 RECOGNIZED. 5552 03:36:47,001 --> 03:36:49,000 MR. SPECTER: AT THE OUTSET, I 5553 03:36:49,001 --> 03:36:51,000 WISH TO ASCERTAIN WITH PRECISION 5554 03:36:51,001 --> 03:36:57,000 THAT I HAVE 20 MINUTES THAT HAD 5555 03:36:57,001 --> 03:36:58,000 BEEN ARRANGED WITH THE FLOOR 5556 03:36:58,001 --> 03:37:00,000 MODERATORS. 5557 03:37:00,001 --> 03:37:02,000 BUT I'D LOOK FOR 30 BUT ASK 5558 03:37:02,001 --> 03:37:03,000 CONSENT THAT I MAY SPEAK FOR UP 5559 03:37:03,001 --> 03:37:04,000 TO 20 MINUTES NOW. 5560 03:37:04,001 --> 03:37:09,000 THE PRESIDING OFFICER: IS THERE OBJECTION? 5561 03:37:09,001 --> 03:37:11,000 DODMR. DODD: DODD 5562 03:37:11,001 --> 03:37:12,000 I HAD A SHEET OF PAPER IN FRONT 5563 03:37:12,001 --> 03:37:14,000 OF ME, MR. PRESIDENT. 5564 03:37:14,001 --> 03:37:16,000 I DON'T HAVE IT IN FRONT OF ME 5565 03:37:16,001 --> 03:37:18,000 NOW -- THE ORDER OF THOSE WHO SOHT TIME. 5566 03:37:18,001 --> 03:37:20,000 I JUST WANT TO BE CAREFUL AS MY 5567 03:37:20,001 --> 03:37:21,000 COLLEAGUE FROM PENNSYLVAA WILL 5568 03:37:21,001 --> 03:37:23,000 UNDERSTAND THAT WE'RE GOING TO 5569 03:37:23,001 --> 03:37:26,000 VOTE AT 2:00. 5570 03:37:26,001 --> 03:37:30,000 I WANT TO MAKE SURE THAT WE HAVE 5571 03:37:30,001 --> 03:37:31,000 THE -- THAT I CAN ACCOMMODATE COLLEAGUES. 5572 03:37:31,001 --> 03:37:32,000 DOES THE 20 MINUTES -- 5573 03:37:32,001 --> 03:37:34,000 THE PRESIDING OFFICER: 23 5574 03:37:34,001 --> 03:37:35,000 MINUTES RESPECT TO THE MAJORITY. 5575 03:37:35,001 --> 03:37:36,000 MR. DODD: 5576 03:37:36,001 --> 03:37:37,000 AND I KNOW SENATOR CONRAD, THE 5577 03:37:37,001 --> 03:37:38,000 CHAIRMAN OF THE BUDGET 5578 03:37:38,001 --> 03:37:40,000 COMMITTEE, IN FACT HAS TO BE 5579 03:37:40,001 --> 03:37:42,000 HEARD AND IT'S VERY CRITICAL TO 5580 03:37:42,001 --> 03:37:43,000 ME THAT HE BE HEARD ON THE 5581 03:37:43,001 --> 03:37:46,000 BUDGET POINT OF ORDER. 5582 03:37:46,001 --> 03:37:52,000 SO I'M GOING TO 5583 03:37:52,001 --> 03:37:55,000 -- 5584 03:37:55,001 --> 03:37:59,000 COULD YOU MAKE IT A LITTLE LESS 5585 03:37:59,001 --> 03:38:02,000 THAN 20? 5586 03:38:02,001 --> 03:38:04,000 MR. SPECTER: I REALLY CAN'T. 5587 03:38:04,001 --> 03:38:08,000 I HAD STARTED AT 30 AND 20 IS 5588 03:38:08,001 --> 03:38:09,000 TOUGH. 5589 03:38:09,001 --> 03:38:11,000 HOW EARLY MIGHT I RETURN FOR MY 5590 03:38:11,001 --> 03:38:14,000 30 MINUTES? 5591 03:38:14,001 --> 03:38:15,000 MR. DODD: AFTER 2:00. 5592 03:38:15,001 --> 03:38:17,000 MR. SPECTE 5593 03:38:17,001 --> 03:38:18,000 MR. DODD: ANY POINT AFTER THE -- 5594 03:38:18,001 --> 03:38:20,000 MR. SPECTER: I ASK UNANIMOUS 5595 03:38:20,001 --> 03:38:22,000 CONSENT THAT I MAY HAVE THE 30 5596 03:38:22,001 --> 03:38:24,000 MINUTES WHEN THE TWO VOTES WHICH 5597 03:38:24,001 --> 03:38:25,000 WERE SCHEDULED FOR 2:00 5598 03:38:25,001 --> 03:38:27,000 CONCLUDE? MR. DODD: CERTAINLY. 5599 03:38:27,001 --> 03:38:28,000 I DON'T HAVE ANY OBJECTION TO 5600 03:38:28,001 --> 03:38:30,000 THAT AT 5601 03:38:30,001 --> 03:38:31,000 TAKE SOME TIME AT THIS JUNCTURE, 5602 03:38:31,001 --> 03:38:32,000 IF YOU WISH. 5603 03:38:32,001 --> 03:38:34,000 MR. SPECTER: WELL, I'LL DO ALL 5604 03:38:34,001 --> 03:38:37,000 AT ONCE. 5605 03:38:37,001 --> 03:38:38,000 I DON'T WANT TO TRUNCATE IT. 5606 03:38:38,001 --> 03:38:40,000 BUT MY -- I ASK UNANIMOUS 5607 03:38:40,001 --> 03:38:42,000 CONSENT THAT I MAY HAVE THE 5608 03:38:42,001 --> 03:38:43,000 FLOOR FOR 30 MINUTES AT THE 5609 03:38:43,001 --> 03:38:44,000 CONCLUSION OF THE TWO VOTES 5610 03:38:44,001 --> 03:38:45,000 SCHEDULED FOR 2:00. 5611 03:38:45,001 --> 03:38:46,000 THE PRESIDING OFFICER: IS 5612 03:38:46,001 --> 03:38:49,000 THERE OBJECTION? 5613 03:38:49,001 --> 03:38:50,000 MR. DODD: LET ME JUST AGAIN -- 5614 03:38:50,001 --> 03:38:51,000 LET ME OBSERVE THE RIGHT TO 5615 03:38:51,001 --> 03:38:53,000 OFNLT I SEE THAT THE MINORITY 5616 03:38:53,001 --> 03:38:55,000 WANTS TO CHECK ON SUCH A Q I 5617 03:38:55,001 --> 03:38:57,000 HAVE NO OBJECTIONYSELF, BUT 5618 03:38:57,001 --> 03:38:58,000 OBVIOUSLY THAT'S A MATTER THAT 5619 03:38:58,001 --> 03:39:00,000 IN FAIRNESS TO THE MINORITY WE 5620 03:39:00,001 --> 03:39:05,000 WANT TO LET THEM KNOW OF SUCH A 5621 03:39:05,001 --> 03:39:07,000 HERE WE'RE EATING UP TIME RIGHT 5622 03:39:07,001 --> 03:39:08,000 NOW. 5623 03:39:08,001 --> 03:39:10,000 I SEE MY FRID FROM NORTH 5624 03:39:10,001 --> 03:39:11,000 DAKOTA HERE AS WELL. 5625 03:39:11,001 --> 03:39:13,000 I'M DEEPLY GRATEFUL 5626 03:39:13,001 --> 03:39:14,000 CHAIRMAN OF THE BUDGET COMMITTEE 5627 03:39:14,001 --> 03:39:15,000 FOR -- ARE Y ALL RIGHT WITH THAT? 5628 03:39:15,001 --> 03:39:16,000 GO AHEAD WITH THAT REQUEST. 5629 03:39:16,001 --> 03:39:17,000 I'M TOLD IT'S OKAY. 5630 03:39:17,001 --> 03:39:20,000 THE PRESIDING OFFICER: WITHOUT 5631 03:39:20,001 --> 03:39:22,000 OBJECTION, SO ORDERED. MR. SPECTER: THANK YOU. 5632 03:39:22,001 --> 03:39:24,000 I THANK THE CHAIR AIRINGS AND MY 5633 03:39:24,001 --> 03:39:25,000 COLLEAGUE FROM 5634 03:39:25,001 --> 03:39:26,000 MR. DODD: I THANK MY COLLEAGUE 5635 03:39:26,001 --> 03:39:28,000 PENNSYLVANIA AND THE UNKNOWN 5636 03:39:28,001 --> 03:39:30,000 PERSONS IN THE CLOAKROOM. 5637 03:39:30,001 --> 03:39:32,000 THE RECORD WILL RECORD THEY 5638 03:39:32,001 --> 03:39:34,000 ACKNOWLEDGE YOUR REQUEST. 5639 03:39:34,001 --> 03:39:35,000 I SEE THE CHAIRMAN OF THE BUDGET 5640 03:39:35,001 --> 03:39:36,000 COMMITTEE. MR. 5641 03:39:36,001 --> 03:39:38,000 THE PRESIDING OFFICER: THE 5642 03:39:38,001 --> 03:39:39,000 SENATOR FROM NORTH DAKOTA IS RECOGN 5643 03:39:39,001 --> 03:39:40,000 MR. CONRAD: I HAVE COME TO THE 5644 03:39:40,001 --> 03:39:41,000 FLOOR TO DISCUSS THE BUDGET 5645 03:39:41,001 --> 03:39:43,000 POINT OF ORDER THAT HAS BEEN 5646 03:39:43,001 --> 03:39:45,000 RAISED AGAINST THE FINANCIAL 5647 03:39:45,001 --> 03:39:48,000 REFORM CONFERENCE REPORT. 5648 03:39:48,001 --> 03:39:51,000 I'LL BE VOTING TO WAIVE THIS 5649 03:39:51,001 --> 03:39:52,000 POINT OF ORDER. 5650 03:39:52,001 --> 03:39:53,000 AS BUDGET COMMITTEE CHAIRMAN, I 5651 03:39:53,001 --> 03:39:55,000 DON'T TAKE THIS STEP 5652 03:39:55,001 --> 03:39:58,000 IN FACT, THE POINT OF ORDER THAT 5653 03:39:58,001 --> 03:40:02,000 HAS BEEN OFFERED IS A NIERD I 5654 03:40:02,001 --> 03:40:04,000 CREATED IN 5655 03:40:04,001 --> 03:40:06,000 IT'S SOMETHING I FEEL STRONGLY 5656 03:40:06,001 --> 03:40:10,000 ABOUT AS A GENERAL MATTER. 5657 03:40:10,001 --> 03:40:15,000 BUT ITS APPLICABILITY HERE, I 5658 03:40:15,001 --> 03:40:17,000 THINK, IS REALLY -- FALLS IN THE 5659 03:40:17,001 --> 03:40:18,000 FACE OF THE IMPORTANCE OF THE 5660 03:40:18,001 --> 03:40:21,000 LEGISLATION THAT WE NEED TO 5661 03:40:21,001 --> 03:40:23,000 CONSIDER. 5662 03:40:23,001 --> 03:40:26,000 THE LEGISLATION BEFORE US IS 5663 03:40:26,001 --> 03:40:28,000 CRITICAL TO OUR ECONOMIC STRENGTH. 5664 03:40:28,001 --> 03:40:30,000 I THINK WE ALL UNDERSTAND THAT 5665 03:40:30,001 --> 03:40:33,000 FINANCIAL REFORM IS LONG OVERDUE. 5666 03:40:33,001 --> 03:40:36,000 IT'S BEEN ALMOST TWO YEARS SINCE 5667 03:40:36,001 --> 03:40:39,000 THE FINANCIAL SECTOR COLLAPSE 5668 03:40:39,001 --> 03:40:40,000 BROUGHT OUR ECONOMY TO THE BRINK 5669 03:40:40,001 --> 03:40:44,000 OF GLOBAL FINANCIAL COLLAPSE. 5670 03:40:44,001 --> 03:40:45,000 AND I WAS IN THE ROOM. 5671 03:40:45,001 --> 03:40:47,000 SENATOR DODD WAS IN THE ROOM 5672 03:40:47,001 --> 03:40:48,000 WHEN WE WERE INFORMED BY THE 5673 03:40:48,001 --> 03:40:49,000 CHAIRMAN OF THE FEDERAL RESERVE 5674 03:40:49,001 --> 03:40:51,000 AND THE SECRETARY OF THE 5675 03:40:51,001 --> 03:40:53,000 TREASURY IN THE PREVIOUS 5676 03:40:53,001 --> 03:40:56,000 ADMINISTRATION THAT IF WE FAILED 5677 03:40:56,001 --> 03:40:58,000 TO ACT AT THAT DIRE MOMENT, THAT 5678 03:40:58,001 --> 03:41:00,000 WE COULD FACE A GLOBAL FINANCIAL 5679 03:41:00,001 --> 03:41:02,000 COLLAPSE. 5680 03:41:02,001 --> 03:41:04,000 THAT'S HOW SERIOUS IT WAS. 5681 03:41:04,001 --> 03:41:06,000 NOW THAT THE ECONOMY HAS 5682 03:41:06,001 --> 03:41:09,000 STABLIZED, IT'S EASY TO FORGET 5683 03:41:09,001 --> 03:41:10,000 THE CRISIS THAT SWEPT THROUGH 5684 03:41:10,001 --> 03:41:13,000 THE FINANCIAL MARKETS AND THREW 5685 03:41:13,001 --> 03:41:14,000 US INTO THE WORST DOWNTURN SINCE 5686 03:41:14,001 --> 03:41:17,000 THE GREAT DEPRESSION. 5687 03:41:17,001 --> 03:41:18,000 IN FACT, WHAT RISKED A SECOND 5688 03:41:18,001 --> 03:41:21,000 GREAT DEPRESSION. 5689 03:41:21,001 --> 03:41:23,000 BUT WE CAN'T AFFORD TO FORGET. 5690 03:41:23,001 --> 03:41:24,000 WE NEED TO REMBER THAT THE 5691 03:41:24,001 --> 03:41:26,000 PROBLEMS ON WALL STREET AND IN 5692 03:41:26,001 --> 03:41:28,000 OUR FINANCIAL SECTOR HAVE A 5693 03:41:28,001 --> 03:41:31,000 DIRECT IMPACT ON MAIN STREET AND 5694 03:41:31,001 --> 03:41:33,000 THE LIVES OF EVERY AMERICAN. 5695 03:41:33,001 --> 03:41:36,000 WE NEED TO ENSURE THAT TAXPAYERS 5696 03:41:36,001 --> 03:41:37,000 ARE NEVER AGAIN ASKED TO BAIL 5697 03:41:37,001 --> 03:41:39,000 OUT WALL STREET. 5698 03:41:39,001 --> 03:41:41,000 THIS FINANCIAL REFORM 5699 03:41:41,001 --> 03:41:44,000 LEGISLATION WILL PREVENT ANOTHER 5700 03:41:44,001 --> 03:41:47,000 FINANCIAL SECTOR COLLAPSE. 5701 03:41:47,001 --> 03:41:48,000 OR AT LEA 5702 03:41:48,001 --> 03:41:49,000 I DON'T THINK ANY OF US N SAY 5703 03:41:49,001 --> 03:41:51,000 THAT THIS WILL PREVENT ANY 5704 03:41:51,001 --> 03:41:54,000 FUTURE COLLAPSE. 5705 03:41:54,001 --> 03:41:55,000 BUT IT I 5706 03:41:55,001 --> 03:41:56,000 TO HELPING US PREVENT ANOTHER 5707 03:41:56,001 --> 03:41:58,000 COLLAP. 5708 03:41:58,001 --> 03:42:00,000 IT WILL ALLOW THE GOVERNMENT TO 5709 03:42:00,001 --> 03:42:02,000 SHUT DOWN FIRMS THAT THREATEN TO 5710 03:42:02,001 --> 03:42:04,000 CRATER OUR ECONOMY AND ENSURE 5711 03:42:04,001 --> 03:42:08,000 THAT THE FINANCIAL INDUSTRY -- 5712 03:42:08,001 --> 03:42:10,000 NOT TAXPAYERS -- ARE ON THE LOOK -- 5713 03:42:10,001 --> 03:42:11,000 ARE ON HOOK FOR ANY COSTS. 5714 03:42:11,001 --> 03:42:13,000 IT WILL REIN IN RICKEY 5715 03:42:13,001 --> 03:42:15,000 DERIVATIVES AND OTHER PRACTICES 5716 03:42:15,001 --> 03:42:16,000 THAT UNDERMINE SOME OF OUR 5717 03:42:16,001 --> 03:42:17,000 LARGEST FINANCIAL INSTITUTIONS. 5718 03:42:17,001 --> 03:42:19,000 IT WILL HELP LEVEL THE PLAYING 5719 03:42:19,001 --> 03:42:20,000 FIELD FOR SMALLER BANKS AND 5720 03:42:20,001 --> 03:42:22,000 CREDIT UNIONS BY CRACKING DOWN 5721 03:42:22,001 --> 03:42:25,000 ON THE RISKY PRACTICES OF WALL 5722 03:42:25,001 --> 03:42:27,000 STREET AND NONBANK FINANCIAL 5723 03:42:27,001 --> 03:42:28,000 INSTITUTIONS THAT CAUSED THE 5724 03:42:28,001 --> 03:42:31,000 FINANCIAL 5725 03:42:31,001 --> 03:42:33,000 I'M GRATEFUL TO SENATOR DODD, 5726 03:42:33,001 --> 03:42:34,000 THE BANKING COMMITTEE, AND 5727 03:42:34,001 --> 03:42:35,000 MEMBERS OF THE CONFERENCE FOR 5728 03:42:35,001 --> 03:42:37,000 WORKING WITH ME TO MAKE CERTAIN 5729 03:42:37,001 --> 03:42:38,000 THAT THE FINAL BILL RECOGNIZES 5730 03:42:38,001 --> 03:42:40,000 THE SPECIAL CIRCUMSTANCES OF 5731 03:42:40,001 --> 03:42:42,000 COMMUNITY BANKS AND CREDIT 5732 03:42:42,001 --> 03:42:44,000 UNIONS IN RURAL STATES LIKE 5733 03:42:44,001 --> 03:42:49,000 MINE. 5734 03:42:49,001 --> 03:42:50,000 IN PARTICULAR, I APPRECIATE THE 5735 03:42:50,001 --> 03:42:53,000 LENDING LIMIT 5736 03:42:53,001 --> 03:42:55,000 THIS WAS VERY IMPORTANT TO 5737 03:42:55,001 --> 03:42:57,000 FARMING COMMUNITIES ACROSS THE COUNTRY. 5738 03:42:57,001 --> 03:43:00,000 THE FINAL BILL ALSO PROVIDES 5739 03:43:00,001 --> 03:43:02,000 ADDED FLEXIBILITY FOR RURAL 5740 03:43:02,001 --> 03:43:04,000 LENDERS IN THE NEW MORTGAGE 5741 03:43:04,001 --> 03:43:07,000 STANDARDS AS WELL AS PROVISIONS 5742 03:43:07,001 --> 03:43:08,000 TO IMPROVE INTERCHANGE REFORM FOR SMALLER FINANCIAL 5743 03:43:08,001 --> 03:43:10,000 INSTITUTIONS. 5744 03:43:10,001 --> 03:43:13,000 I AM PLEASED THE COMMITTEE 5745 03:43:13,001 --> 03:43:14,000 INCLUDED A RISK-FOCUSED DEPOSIT 5746 03:43:14,001 --> 03:43:15,000 INSURANCE FUND ASSESSMENT 5747 03:43:15,001 --> 03:43:17,000 FORMULA AND MODIFIED RISK 5748 03:43:17,001 --> 03:43:18,000 RETENTION REQUI 5749 03:43:18,001 --> 03:43:20,000 HIGH-QUALITY LOANS. 5750 03:43:20,001 --> 03:43:23,000 AND ESPECIALLY WANT TO THANK 5751 03:43:23,001 --> 03:43:24,000 SENATOR DODD FOR HIS 5752 03:43:24,001 --> 03:43:28,000 EXTRAORDINARY LEADERSHIP. 5753 03:43:28,001 --> 03:43:29,000 WHAT A FINAL YEAR IN THE UNITED 5754 03:43:29,001 --> 03:43:35,000 STATES SENATE. 5755 03:43:35,001 --> 03:43:38,000 WHAT A REMARKABLE LEGACY HE IS LEAVING. 5756 03:43:38,001 --> 03:43:41,000 I THINK THE ANNALS OF THE UNITED 5757 03:43:41,001 --> 03:43:44,000 STATES SENATE WILL SHOW VERY FEW 5758 03:43:44,001 --> 03:43:46,000 SENATORS HAVE HAD A RECORD OF 5759 03:43:46,001 --> 03:43:48,000 ACCOMPLISHMENT THAT MATCHES WHAT 5760 03:43:48,001 --> 03:43:50,000 SENATOR DODD WILL HAVE DONE IN 5761 03:43:50,001 --> 03:43:52,000 THIS YEAR. 5762 03:43:52,001 --> 03:43:53,000 WITH RESPECT TO THE BUDGET POINT 5763 03:43:53,001 --> 03:43:55,000 OF ORDER THAT'S BEEN RAISED 5764 03:43:55,001 --> 03:43:56,000 AGAINST THE CONFERENCE REPORT, 5765 03:43:56,001 --> 03:43:58,000 LET ME JUST MAKE A COUPLE OF 5766 03:43:58,001 --> 03:44:02,000 GENERAL POINTS. 5767 03:44:02,001 --> 03:44:05,000 FIRST, THIS BUDGET VIOLATION IS 5768 03:44:05,001 --> 03:44:06,000 NOT SIGNIFICANT ENOUGH TO MERIT 5769 03:44:06,001 --> 03:44:08,000 DERAILING THIS IMPORTANT 5770 03:44:08,001 --> 03:44:11,000 LEGISLATION. 5771 03:44:11,001 --> 03:44:15,000 SECOND, WE MUST BEAR IN MIND THE 5772 03:44:15,001 --> 03:44:18,000 RISKS OF FAILING TO ACT. 5773 03:44:18,001 --> 03:44:21,000 IF WE FAIL TO PROTECT AGAINST A 5774 03:44:21,001 --> 03:44:25,000 FUTURE COLLAPSE AND CREATE AN 5775 03:44:25,001 --> 03:44:26,000 ORDERLY PROCESS FOR DEALING WITH 5776 03:44:26,001 --> 03:44:28,000 GIANT INSOLVENT FINANCIAL 5777 03:44:28,001 --> 03:44:29,000 INSTITUTIONS, IT IS INEVITABLE 5778 03:44:29,001 --> 03:44:31,000 THAT TAXPAYERS WILL AGAIN AT 5779 03:44:31,001 --> 03:44:33,000 SOME FUTURE POINT BE ASKED TO 5780 03:44:33,001 --> 03:44:37,000 BAIL 5781 03:44:37,001 --> 03:44:41,000 AND PREVENT FINANCIAL COLLAPSE. 5782 03:44:41,001 --> 03:44:44,000 IF ONE MEASURES ON SCALE THE 5783 03:44:44,001 --> 03:44:46,000 DIFFERENCE 5784 03:44:46,001 --> 03:44:47,000 TECHNICAL VIOLATION IN THIS 5785 03:44:47,001 --> 03:44:49,000 BUDGET POINT OF O 5786 03:44:49,001 --> 03:44:51,000 WHAT WOULD 5787 03:44:51,001 --> 03:44:52,000 LEGISLATION FAILS, IT CAN'T EVEN 5788 03:44:52,001 --> 03:44:56,000 BE COMPARED. 5789 03:44:56,001 --> 03:44:59,000 I MEAN, IT IS A GNAT ELEPHANT. 5790 03:44:59,001 --> 03:45:01,000 SO 5791 03:45:01,001 --> 03:45:03,000 LET'S KEEP THINGS IN MIND HERE. 5792 03:45:03,001 --> 03:45:05,000 SECOND, WE MUST BEAR IN MIND THE 5793 03:45:05,001 --> 03:45:07,000 RISK OF FAILING TO 5794 03:45:07,001 --> 03:45:09,000 THAT WOULD BURDEN TAXPAYERS IN A 5795 03:45:09,001 --> 03:45:10,000 WAY FAR BEYOND ANYTHING WE SEE 5796 03:45:10,001 --> 03:45:12,000 WITH THIS BUDGET POINT OF ORDER. 5797 03:45:12,001 --> 03:45:16,000 NONE OF US WANTS THAT. 5798 03:45:16,001 --> 03:45:19,000 THIS BILL IS AN INSURANCE POLICY 5799 03:45:19,001 --> 03:45:20,000 AGAINST AN 5800 03:45:20,001 --> 03:45:21,000 TAXPAYER BAILOUT. 5801 03:45:21,001 --> 03:45:25,000 NOW, THE POINT OF ORDER THAT'S 5802 03:45:25,001 --> 03:45:27,000 BEEN RAISED IS THE LONG-TERM DEFICIT POINT OF ORDER, A POINT 5803 03:45:27,001 --> 03:45:30,000 OF ORDER THAT I ESTABLISHED IN 5804 03:45:30,001 --> 03:45:32,000 THE BUDGET RESOLUTION OF 2008. 5805 03:45:32,001 --> 03:45:34,000 THIS POINT OF ORDER PROHIBITS 5806 03:45:34,001 --> 03:45:36,000 LEGISLATION THAT WORSENS THE 5807 03:45:36,001 --> 03:45:40,000 DEFICIT BY MORE THAN $5 BILLION 5808 03:45:40,001 --> 03:45:43,000 IN ANY OF THE FOUR TEN-YEAR 5809 03:45:43,001 --> 03:45:45,000 PERIODS FOLLOWING 2019. 5810 03:45:45,001 --> 03:45:47,000 C.B.O. HAS DETERMINED THAT AT 5811 03:45:47,001 --> 03:45:50,000 LEAST IN ONE OF THOSE FOUR 5812 03:45:50,001 --> 03:45:52,000 TEN-YEAR PERIODS, THE CONFERENCE 5813 03:45:52,001 --> 03:45:53,000 REPORT WOULD EXCEED THIS 5814 03:45:53,001 --> 03:45:56,000 THRESHOLD. 5815 03:45:56,001 --> 03:45:59,000 BUT THIS IS REALLY JUST A TIMING 5816 03:45:59,001 --> 03:46:00,000 ISSUE CAUSED BY THE NEW 5817 03:46:00,001 --> 03:46:02,000 BIPARTIS 5818 03:46:02,001 --> 03:46:04,000 CREATED BY THE BILL. 5819 03:46:04,001 --> 03:46:07,000 THIS IS THE NEW AUTHORITY 5820 03:46:07,001 --> 03:46:08,000 TO THE GOVERNMENT TO WIND DOWN 5821 03:46:08,001 --> 03:46:10,000 FAILG FINANCIAL FIRMS. 5822 03:46:10,001 --> 03:46:14,000 UNDER THE RESOLUTION AUTHORITY, 5823 03:46:14,001 --> 03:46:15,000 IF A FINANCIAL FIRM IS ABOUT TO 5824 03:46:15,001 --> 03:46:17,000 COLLAPSE, THE GOVERNMENT WILL 5825 03:46:17,001 --> 03:46:19,000 USE THE FIRM'S ASSETS TO WIND IT 5826 03:46:19,001 --> 03:46:21,000 DOWN AND PUT IT OUT OF BUSINESS. 5827 03:46:21,001 --> 03:46:24,000 IF THE FIRM'S 5828 03:46:24,001 --> 03:46:26,000 INSUFFICIENT, THE 5829 03:46:26,001 --> 03:46:28,000 WILL TEMPORARILY BORROW FUNDS 5830 03:46:28,001 --> 03:46:30,000 FROM THE TREASURY. 5831 03:46:30,001 --> 03:46:33,000 THE FINANCIAL INDUSTRY WILL THEN 5832 03:46:33,001 --> 03:46:38,000 REIMBURSE THE GOVERNMENT 5833 03:46:38,001 --> 03:46:40,000 TAXPAYERS FOR 100% OF THE COST. 5834 03:46:40,001 --> 03:46:43,000 AGAIN, 100% OF THE MONEY WILL BE 5835 03:46:43,001 --> 03:46:47,000 PAID BACK BY THE BANKS, SO THE 5836 03:46:47,001 --> 03:46:52,000 NET IMPACT ON THE DEFICIT IS ZERO. 5837 03:46:52,001 --> 03:46:54,000 AND OVERALL, THE 5838 03:46:54,001 --> 03:46:56,000 BILLION OVER THE FIRST TEN 5839 03:46:56,001 --> 03:46:57,000 YEARS, ACCORDING TO THE 5840 03:46:57,001 --> 03:47:01,000 CONGRESSIONAL BUDGET OFFICE. 5841 03:47:01,001 --> 03:47:05,000 SO, WHILE TECHNICALLY THIS 5842 03:47:05,001 --> 03:47:06,000 BUDGET POINT OF ORDER LIES IF 5843 03:47:06,001 --> 03:47:09,000 YOU PIERCE THE VEIL AND LOOK 5844 03:47:09,001 --> 03:47:11,000 WHAT REALLY HAPPENS, THIS BILL 5845 03:47:11,001 --> 03:47:13,000 REDUCES THE DEFICIT, ACCORDING 5846 03:47:13,001 --> 03:47:16,000 TO THE CONGRESSIONAL BUDGET 5847 03:47:16,001 --> 03:47:17,000 OFFICE, WHICH IS 5848 03:47:17,001 --> 03:47:19,000 SCOREKEEPER HERE IN THE UNITED 5849 03:47:19,001 --> 03:47:21,000 STATES 5850 03:47:21,001 --> 03:47:22,000 BECAUSE THERE IS A LAG TIME FOR 5851 03:47:22,001 --> 03:47:24,000 THE GOVERNMENT TO COLLECT THIS 5852 03:47:24,001 --> 03:47:26,000 MONEY FROM THE FINANCIAL 5853 03:47:26,001 --> 03:47:30,000 INDUSTRY, C.B.O. SCORES THE BILL 5854 03:47:30,001 --> 03:47:31,000 AS INCREASING THE DEFICIT IN 5855 03:47:31,001 --> 03:47:34,000 SOME OF THE LATER DECADES. 5856 03:47:34,001 --> 03:47:37,000 BUT ALL OF THAT 5857 03:47:37,001 --> 03:47:39,000 PAID BACK IN ENSUING YEARS. 5858 03:47:39,001 --> 03:47:43,000 THAT'S WHAT MATTERS MOST IN THIS CASE. 5859 03:47:43,001 --> 03:47:46,000 SO, ALTHOUGH THIS BILL DOES 5860 03:47:46,001 --> 03:47:48,000 TECHNICALLY VIOLATE THE 5861 03:47:48,001 --> 03:47:50,000 LONG-TERM DEFICIT POINT OF 5862 03:47:50,001 --> 03:47:54,000 ORDER, IT IS INSIGNIFICANT. 5863 03:47:54,001 --> 03:47:56,000 THE FACT IS THIS BILL REDUCES 5864 03:47:56,001 --> 03:47:57,000 THE DEFICIT, ACCORDING TO THE 5865 03:47:57,001 --> 03:48:00,000 CONGRESSIONAL BUDGET OFFICE. 5866 03:48:00,001 --> 03:48:02,000 SO I URGE MY COLLEAGUES TO WAIVE 5867 03:48:02,001 --> 03:48:06,000 THE POINT OF ORDER, TO SUPPORT 5868 03:48:06,001 --> 03:48:09,000 PASSAGE OF THIS FINANCIAL REFORM 5869 03:48:09,001 --> 03:48:11,000 LEGISLATION, WHICH IS CLEARLY A 5870 03:48:11,001 --> 03:48:13,000 SIGNIFICANT STEP IN THE RIGHT 5871 03:48:13,001 --> 03:48:16,000 DIRECTION IN PREVENTING THE KIND 5872 03:48:16,001 --> 03:48:19,000 OF RISK TO OUR NATION'S ECONOMY 5873 03:48:19,001 --> 03:48:21,000 THAT IS SO APPARENT WITH THE 5874 03:48:21,001 --> 03:48:22,000 CURRENT STRUCTURE. 5875 03:48:22,001 --> 03:48:23,000 MR. PRESIDENT, I YIELD THE 5876 03:48:23,001 --> 03:48:25,000 FLOOR. 5877 03:48:25,001 --> 03:48:27,000 AND AGAIN I WANT TO THANK THE 5878 03:48:27,001 --> 03:48:28,000 CHAIRMAN FOR HIS REALLY 5879 03:48:28,001 --> 03:48:31,000 EXTRAORDINARY WORK NOT ONLY ON 5880 03:48:31,001 --> 03:48:32,000 THIS BILL, BUT THROUGHOUT THE YEAR. 5881 03:48:32,001 --> 03:48:33,000 I THINK ALL OF US KNOW, 5882 03:48:33,001 --> 03:48:35,000 THROUGHOUT HIS 5883 03:48:35,001 --> 03:48:36,000 I THANK THE CHAIR AND YIELD THE FLOOR. 5884 03:48:36,001 --> 03:48:37,000 MR. DODD: MR. PRESIDENT? 5885 03:48:37,001 --> 03:48:39,000 THE PRESIDING OFFICER: THE 5886 03:48:39,001 --> 03:48:40,000 SENATOR FROM CONNECTICUT IS RECOGNIZED. 5887 03:48:40,001 --> 03:48:41,000 MR. DODD: BEFORE MY FRIEND, 5888 03:48:41,001 --> 03:48:44,000 THE CHAIRMAN OF THE BUDGET 5889 03:48:44,001 --> 03:48:45,000 COMMITTEE, LEAVES, LET ME THANK 5890 03:48:45,001 --> 03:48:46,000 HIM IMMENSELY FOR HIS ANALYSIS 5891 03:48:46,001 --> 03:48:50,000 OF THIS ISSUE. 5892 03:48:50,001 --> 03:48:51,000 IT IS NOT ONLY REPAYING 100%, 5893 03:48:51,001 --> 03:48:52,000 BUT WITH INTEREST. 5894 03:48:52,001 --> 03:48:53,000 THERE'S AN INTEREST REQUIREMENT 5895 03:48:53,001 --> 03:48:56,000 THAT IF WE BORROW FROM THE 5896 03:48:56,001 --> 03:48:58,000 TAXPAYERS IN ORDER TO WIND DOWN 5897 03:48:58,001 --> 03:49:02,000 SUBSTANTIALLY RISKY FIRMS, THEN 5898 03:49:02,001 --> 03:49:03,000 NOT ONLY DO YOU GET PAID BACK, 5899 03:49:03,001 --> 03:49:04,000 BUT THE INTEREST ON THE COST OF 5900 03:49:04,001 --> 03:49:05,000 THAT MONEY IS ALSO PART OF THE 5901 03:49:05,001 --> 03:49:08,000 DEAL. 5902 03:49:08,001 --> 03:49:09,000 SO IT'S 100% PLUS COMING BACK TO 5903 03:49:09,001 --> 03:49:11,000 THE TREASURY. 5904 03:49:11,001 --> 03:49:12,000 BUT HIS ANALYSIS AND THAT OF HIS 5905 03:49:12,001 --> 03:49:16,000 COMMITTEE -- AND THERE'S NO ONE 5906 03:49:16,001 --> 03:49:19,000 WHO IS MORE DISCIPLINED OR 5907 03:49:19,001 --> 03:49:21,000 GUARDED ABOUT THE BUDGETARY 5908 03:49:21,001 --> 03:49:22,000 PROCESS OVER THE YEARS WE'VE 5909 03:49:22,001 --> 03:49:24,000 SERVED TOGETHER. 5910 03:49:24,001 --> 03:49:27,000 SO I APPRECIATE HIS ANALYSIS OF 5911 03:49:27,001 --> 03:49:29,000 THIS PARTICULAR POINT OF THE LONG-TERM DEFICIT. 5912 03:49:29,001 --> 03:49:30,000 AND I COMMEND HIM FOR INCLUDING 5913 03:49:30,001 --> 03:49:32,000 THE PROVISIONS YOU HAVE AND 5914 03:49:32,001 --> 03:49:35,000 TRYING TO BUILD IN SOME 5915 03:49:35,001 --> 03:49:37,000 DISCIPLINE TO THE PROCESS OF HOW 5916 03:49:37,001 --> 03:49:38,000 WE EXPEND TAXPAYERS MONEYS, 5917 03:49:38,001 --> 03:49:39,000 COLLECT TAXES IN THE FIRST PLACE 5918 03:49:39,001 --> 03:49:41,000 TO PAY FOR THE NEEDED 5919 03:49:41,001 --> 03:49:42,000 EXPENDITURES OF OUR GOVERNMENT. 5920 03:49:42,001 --> 03:49:44,000 SO I THANK HIM FOR THAT. 5921 03:49:44,001 --> 03:49:45,000 I THANK HIM FOR HIS GENERAL 5922 03:49:45,001 --> 03:49:47,000 COMMENTS AS WELL ABOUT THE BILL 5923 03:49:47,001 --> 03:49:49,000 AND HIS SUPPORT AND ALSO ABOUT 5924 03:49:49,001 --> 03:49:50,000 TH SUBSTANTIVE CONTRIBUTIONS, 5925 03:49:50,001 --> 03:49:51,000 MR. PRESIDENT, THAT THE SENATOR 5926 03:49:51,001 --> 03:49:53,000 FROM NORTH DAKOTA HAS MADE. 5927 03:49:53,001 --> 03:49:56,000 BECAUSE ONE OF THE THINGS WE'VE 5928 03:49:56,001 --> 03:49:58,000 TRIED TO BE VERY CAREFUL 5929 03:49:58,001 --> 03:50:00,000 ABOUT -- JON TTER FROM MONTANA 5930 03:50:00,001 --> 03:50:02,000 WHO SITS ON THE COMMIEE WITH 5931 03:50:02,001 --> 03:50:04,000 ME HAS BEEN ACTIVE IN SEEING TO 5932 03:50:04,001 --> 03:50:07,000 IT THAT RURAL AMERICA IS GOING 5933 03:50:07,001 --> 03:50:09,000 TO BE WELL SERVED BY THIS LEGISLATION. 5934 03:50:09,001 --> 03:50:10,000 AND THERE ARE DIFFERENCES. 5935 03:50:10,001 --> 03:50:12,000 IT'S NOT ALL WALL STREET, NEW 5936 03:50:12,001 --> 03:50:13,000 YORK AND MAJOR FINANCIAL 5937 03:50:13,001 --> 03:50:14,000 CENTERS. 5938 03:50:14,001 --> 03:50:15,000 THE IMPORTANCE OF THE 5939 03:50:15,001 --> 03:50:17,000 AVAILABILITY OF CREDIT IN RURAL 5940 03:50:17,001 --> 03:50:19,000 COMMUNITIES IS CRITICAL, AS MY 5941 03:50:19,001 --> 03:50:21,000 COLLEAGUE FROM NORTH DAKOTA HAS 5942 03:50:21,001 --> 03:50:23,000 INFORMED ME OVER THE YEARS WE'VE SERVED TOGETHER. 5943 03:50:23,001 --> 03:50:25,000 THAT ABILITY OF A LOCAL FARMER 5944 03:50:25,001 --> 03:50:27,000 TO BORROW THAT MONEY IN THE 5945 03:50:27,001 --> 03:50:30,000 SPRING TO BE ABLE TO PAY BACK IN 5946 03:50:30,001 --> 03:50:32,000 THE FALL, AT HARVEST TIME, HAS 5947 03:50:32,001 --> 03:50:34,000 BEEN ABSOLUTELY ESSENTIAL AND 5948 03:50:34,001 --> 03:50:36,000 KNOWING HOW DIFFICULT IT'S BEEN 5949 03:50:36,001 --> 03:50:37,000 THROUGHOUT COUNTRY TO GET CREDIT 5950 03:50:37,001 --> 03:50:38,000 IS ESSENTIAL. 5951 03:50:38,001 --> 03:50:39,000 HIS CONTRIBUTIONS TO THE 5952 03:50:39,001 --> 03:50:41,000 LEGISLATION TO MAKE SURE THAT 5953 03:50:41,001 --> 03:50:43,000 WHAOE DID HERE WAS GOING TO -- 5954 03:50:43,001 --> 03:50:44,000 WHAT WE DID HERE WAS GOING TO 5955 03:50:44,001 --> 03:50:46,000 ENHANCE THE CAPABILITY OF RURAL 5956 03:50:46,001 --> 03:50:48,000 AMERICA TO NOT ONLY COME OUT OF 5957 03:50:48,001 --> 03:50:50,000 THIS CRISIS WE'RE IN BUT TO 5958 03:50:50,001 --> 03:50:52,000 PROSPER IN THE YEARS AHEAD. 5959 03:50:52,001 --> 03:50:54,000 BEYOND THE CONSIDERATION AND THE POINTS OF 5960 03:50:54,001 --> 03:50:55,000 ORDER BEFORE US, I THANK HIM FOR 5961 03:50:55,001 --> 03:50:56,000 HIS CONTRIBUTION TO THE 5962 03:50:56,001 --> 03:50:58,000 SUBSTANCE OF THE BILL WHICH HAS 5963 03:50:58,001 --> 03:51:00,000 MADE IT A FAR BETTER BILL TO BEGIN WITH. 5964 03:51:00,001 --> 03:51:01,000 SO I THANK YOU. 5965 03:51:01,001 --> 03:51:04,000 MR. PRESIDENT, I SEE MY 5966 03:51:04,001 --> 03:51:06,000 COLLEAGUE FROM OREGON WHO'S HERE. 5967 03:51:06,001 --> 03:51:08,000 I BELIEVE HE'S GOING TO SEEK 5968 03:51:08,001 --> 03:51:12,000 RECOGNITION AS WELL, SO I'LL 5969 03:51:12,001 --> 03:51:14,000 YIELD THE FLOOR. 5970 03:51:14,001 --> 03:51:15,000 MR. MERKLEY: THANK YOU VERY 5971 03:51:15,001 --> 03:51:16,000 MUCH, MR. PRESIDENT. 5972 03:51:16,001 --> 03:51:17,000 THE PRESIDING OFFICER: THE 5973 03:51:17,001 --> 03:51:19,000 SENATOR FROM OREGON IS RECOGNIZED. 5974 03:51:19,001 --> 03:51:20,000 MR. MERKLEY: THA MR. PRESIDENT. 5975 03:51:20,001 --> 03:51:22,000 I THANK CHAIRMAN DODD FOR 5976 03:51:22,001 --> 03:51:24,000 YIELDING TO ME AND FOR HIS 5977 03:51:24,001 --> 03:51:26,000 LEADERSHIP ON FINANCIAL REFORM. 5978 03:51:26,001 --> 03:51:27,000 I ASK UNANIMOUS CONSENT THAT THE 5979 03:51:27,001 --> 03:51:29,000 STATEMENT THAT I DELIVER TO THE 5980 03:51:29,001 --> 03:51:31,000 DESK, WHICH IS A COLLOQUY 5981 03:51:31,001 --> 03:51:33,000 BETWEEN SENATOR LEVIN AND ME 5982 03:51:33,001 --> 03:51:34,000 REGARDING THE VOLCKER RULE 5983 03:51:34,001 --> 03:51:35,000 PROVISION THAT WE AUTHORED WITH 5984 03:51:35,001 --> 03:51:36,000 THE HELP OF THE BANKING 5985 03:51:36,001 --> 03:51:38,000 COMMITTEE AND TREASUR 5986 03:51:38,001 --> 03:51:40,000 DEPARTMENT BE INSERTED IN THE RECORD. 5987 03:51:40,001 --> 03:51:41,000 THE PRESIDING OFFICER: WITHOUT OBJECTION. 5988 03:51:41,001 --> 03:51:43,000 MR. MEREY: THANK YOU VERY MUCH. 5989 03:51:43,001 --> 03:51:45,000 I YIELD THE 5990 03:51:45,001 --> 03:51:47,000 MR. DODD: I SAID IT YESTERDAY, 5991 03:51:47,001 --> 03:51:49,000 BUT I'LL SAY IT TODAY. 5992 03:51:49,001 --> 03:51:51,000 I THANK SENATOR MERKLEY. 5993 03:51:51,001 --> 03:51:54,000 WE HAVE ABOUT, I GUESS THERE ARE 5994 03:51:54,001 --> 03:51:56,000 FOUR NEW MEMBERS OF THE SENATE 5995 03:51:56,001 --> 03:51:57,000 SERVING ON THE BANKING 5996 03:51:57,001 --> 03:52:00,000 COMMITTEE: SENATOR MERKLEY, 5997 03:52:00,001 --> 03:52:02,000 SENATOR WARNER, SENATOR TESTER, 5998 03:52:02,001 --> 03:52:03,000 AND SENATOR BENNET ARE ALL NEW 5999 03:52:03,001 --> 03:52:05,000 MEMBERS OF THE UNITED STATES 6000 03:52:05,001 --> 03:52:08,000 SENATE FROM THEIR RESPECTIVE 6001 03:52:08,001 --> 03:52:10,000 STATES OF MONTANA AND COLORADO 6002 03:52:10,001 --> 03:52:13,000 AND OREGON AND VIRGINIA. 6003 03:52:13,001 --> 03:52:16,000 TO BE THROWN IN TO WHAT HAS BEEN 6004 03:52:16,001 --> 03:52:18,000 THE LARGEST UNDERTAKING OF THE 6005 03:52:18,001 --> 03:52:20,000 BANKING COMMITTEE CERTAINLY IN 6006 03:52:20,001 --> 03:52:22,000 MY THREE DECADES HERE AND MANY 6007 03:52:22,001 --> 03:52:24,000 ARGUE GOING BACK ALMOST 100 6008 03:52:24,001 --> 03:52:25,000 YEARS WAS CERTAINLY AN AWFUL LOT 6009 03:52:25,001 --> 03:52:27,000 TO ASK. 6010 03:52:27,001 --> 03:52:28,000 I'VE ALREADY POINTED OUT THE 6011 03:52:28,001 --> 03:52:30,000 CONTRIBUTION THAT SENATOR WARNER 6012 03:52:30,001 --> 03:52:32,000 HAS MADE TO THIS BILL. 6013 03:52:32,001 --> 03:52:34,000 BUT I MUST SAY AS WELL, SENATOR 6014 03:52:34,001 --> 03:52:35,000 BENNET OF COLORADO HAS BEEN 6015 03:52:35,001 --> 03:52:37,000 INVALUABLE IN HIS CONTRIBUTION. 6016 03:52:37,001 --> 03:52:39,000 SENATOR TESTER, I JUST MENTIONED 6017 03:52:39,001 --> 03:52:40,000 A MOMENT AGO, FOR HIS 6018 03:52:40,001 --> 03:52:41,000 CONTRIBUTION ON TALKING ABOUT 6019 03:52:41,001 --> 03:52:44,000 RURAL AMERICA AND THE IMPORTANCE 6020 03:52:44,001 --> 03:52:46,000 OF THOSE ISSUES. 6021 03:52:46,001 --> 03:52:49,000 AND OBVIOUSLY, BUT SENATOR 6022 03:52:49,001 --> 03:52:52,000 MERKLEY AS A MEMBER OF THE 6023 03:52:52,001 --> 03:52:53,000 COMMITTEE, MATTERS THAT WE 6024 03:52:53,001 --> 03:52:55,000 INCLUDED HERE DEALING MORE 6025 03:52:55,001 --> 03:52:56,000 PARTICULARLY WITH THE MORTGAGING 6026 03:52:56,001 --> 03:52:58,000 REFORMS, UNDERWRITING STANDARDS 6027 03:52:58,001 --> 03:52:59,000 AND THE PROTECTIONS PEOPLE HAVE 6028 03:52:59,001 --> 03:53:00,000 TO GO THROUGH. 6029 03:53:00,001 --> 03:53:02,000 AND CREDIT CARDS. 6030 03:53:02,001 --> 03:53:04,000 WE PASSED THE CREDIT CARD BILL 6031 03:53:04,001 --> 03:53:06,000 AND IT WAS SENATOR JEFF MERKLEY 6032 03:53:06,001 --> 03:53:07,000 IN OREGON WHO PLAYED A CRITICAL 6033 03:53:07,001 --> 03:53:08,000 ROLE IN THAT WHOLE DEBATE AS 6034 03:53:08,001 --> 03:53:09,000 WELL. 6035 03:53:09,001 --> 03:53:12,000 NOT TO MENTION OF COURSE WORKING 6036 03:53:12,001 --> 03:53:13,000 WITH CARL LEVIN, ONE OF THE MORE 6037 03:53:13,001 --> 03:53:15,000 SENIOR MEMBERS HERE, HAVING 6038 03:53:15,001 --> 03:53:17,000 SERVED FOR MANY YEARS IN THE 6039 03:53:17,001 --> 03:53:18,000 UNITED STATES SENATE BUT THE 6040 03:53:18,001 --> 03:53:20,000 MERKLEY-LEVIN, LEVIN-MERKLEY 6041 03:53:20,001 --> 03:53:21,000 PROVISIONS OF THIS BILL HAVE ADDED SUBSTANTIAL CONTRIBUTIONS 6042 03:53:21,001 --> 03:53:24,000 TO THIS EFFORT. 6043 03:53:24,001 --> 03:53:27,000 SO I THANK HIM AS WELL FOR HIS CONTRIBUTION. 6044 03:53:27,001 --> 03:53:29,000 IN THE ABSENCE, I SEE MY 6045 03:53:29,001 --> 03:53:30,000 COLLEAGUE AS WELL FROM NORTH 6046 03:53:30,001 --> 03:53:31,000 DAKOTA WHO'S HERE. 6047 03:53:31,001 --> 03:53:33,000 I DON'T KNOW IF HE WANTS TO BE 6048 03:53:33,001 --> 03:53:34,000 HEARD ON THE BILL. 6049 03:53:34,001 --> 03:53:36,000 DO YOU SEEK RECOGNITION? 6050 03:53:36,001 --> 03:53:38,000 THEN I NOTE THE ABSENCE OF A 6051 03:53:38,001 --> 03:53:39,000 QUORUM TO BE EQUALLY 6052 03:53:39,001 --> 03:53:40,000 AGAINST BOTH SIDES. THE PRESIDING OFFICER: WITHOUT 6053 03:53:40,001 --> 03:53:47,000 OBJECTN, SO ORDERED. 6054 03:53:47,001 --> 03:58:11,000 THE CLERK WILL CALL THE ROLL. 6055 03:58:11,001 --> 03:58:13,000 QUORUM CALL: THE PRESIDING OFFICER: THE 6056 03:58:13,001 --> 03:58:14,000 SE RECOGNIZED. 6057 03:58:14,001 --> 03:58:17,000 MR. DODD: I ASK CONSENT THE 6058 03:58:17,001 --> 03:58:18,000 CALL OF THE QUORUM BE RESCINDED. THE PRESIDING OFFICER: WITHOUT 6059 03:58:18,001 --> 03:58:19,000 OBJECTION, SO ORDERED. 6060 03:58:19,001 --> 03:58:21,000 MR. DODD: MR. PRESIDENT, I'M 6061 03:58:21,001 --> 03:58:22,000 GOING TO ASK CONSENT THAT SOME 6062 03:58:22,001 --> 03:58:24,000 COMMENTS OF MINE 6063 03:58:24,001 --> 03:58:25,000 POINT OF ORDER THAT'S BEEN 6064 03:58:25,001 --> 03:58:26,000 RAISED BE INCLUDED IN THE RECORD. 6065 03:58:26,001 --> 03:58:27,000 I'M NOT GOING TO GO THROUGH IT 6066 03:58:27,001 --> 03:58:28,000 ALL. 6067 03:58:28,001 --> 03:58:29,000 WE LISTENED TO SENATOR CONRAD, 6068 03:58:29,001 --> 03:58:31,000 CHAIRMAN OF THE 6069 03:58:31,001 --> 03:58:33,000 COMMITTEE, ADDRESS THE BUDGET 6070 03:58:33,001 --> 03:58:34,000 POINT OF ORDER, URGE MY 6071 03:58:34,001 --> 03:58:36,000 COLLEAGUES TO WAIVE THE POINT OF ORDER. 6072 03:58:36,001 --> 03:58:39,000 WE CAME UP WITH AN ALTERNATIVE 6073 03:58:39,001 --> 03:58:40,000 TO OFFSET IT IN THE CONFERENCE 6074 03:58:40,001 --> 03:58:42,000 COMMITTEE. 6075 03:58:42,001 --> 03:58:45,000 MUCH OF THE INSTENCE -- AND I 6076 03:58:45,001 --> 03:58:46,000 THANKED THEM FOR THE 6077 03:58:46,001 --> 03:58:48,000 INSISTENCE -- OF SENATOR BROWN 6078 03:58:48,001 --> 03:58:51,000 OF MASSACHUSETTS LOOKING FOR A 6079 03:58:51,001 --> 03:58:52,000 BETTER OFFSET THAN THE ONES ORIGINALLY IN THE CONFERENCE 6080 03:58:52,001 --> 03:58:53,000 REPORT. 6081 03:58:53,001 --> 03:58:54,000 I KNOW MY COLLEAGUES FROM MAINE 6082 03:58:54,001 --> 03:58:56,000 AS WELL HAD RESERVATIONS ABOUT 6083 03:58:56,001 --> 03:58:58,000 WHAT WE ORIGINALLY INCLUDED. 6084 03:58:58,001 --> 03:58:59,000 THE OFFSET HERE ENDS THE TARP 6085 03:58:59,001 --> 03:59:01,000 PROGRAM, WHICH I PREME MOST 6086 03:59:01,001 --> 03:59:03,000 PEOPLE WOULD WELCOME WITH OPEN 6087 03:59:03,001 --> 03:59:05,000 ARMS, SAVING US $11 BILLION BY 6088 03:59:05,001 --> 03:59:07,000 TERMINATING IT EARLY, AS WELL AS 6089 03:59:07,001 --> 03:59:10,000 COMPLYING WITH THE REQUEST BY 6090 03:59:10,001 --> 03:59:12,000 THE CHAIRPERSON OF THE FEDERAL 6091 03:59:12,001 --> 03:59:13,000 DEPOSIT INSURANCE 6092 03:59:13,001 --> 03:59:14,000 SHEILA BAIR, TO PROVIDE FOR 6093 03:59:14,001 --> 03:59:16,000 ADDITIONAL ASSESSMENTS TO MEET 6094 03:59:16,001 --> 03:59:17,000 THE OBLIGATIONS OF THE FDIC AND 6095 03:59:17,001 --> 03:59:19,000 THE INSURANCE FUND. 6096 03:59:19,001 --> 03:59:21,000 BOTH OF THOSE ITEMS PROVIDE THE 6097 03:59:21,001 --> 03:59:22,000 NECESSARY OFFSETS FOR THE COST 6098 03:59:22,001 --> 03:59:25,000 OF THIS BILL. 6099 03:59:25,001 --> 03:59:26,000 THAT'S A VERY ABBREVIATED 6100 03:59:26,001 --> 03:59:28,000 EXPLANATION OF WHAT'S IN THE LEGISLATION. 6101 03:59:28,001 --> 03:59:30,000 BUT I WOULD LIKE TO ASK CONSENT 6102 03:59:30,001 --> 03:59:32,000 THAT THESE FULL COMMES, MR. PRESIDENT, BE INCLUDED IN 6103 03:59:32,001 --> 03:59:35,000 THE RECORD TO EXPLAIN ALL OF 6104 03:59:35,001 --> 03:59:36,000 THAT FOR THE PURPOSES OF THE 6105 03:59:36,001 --> 03:59:39,000 RECORD AND AGAIN URGE MY 6106 03:59:39,001 --> 03:59:40,000 COLLEAGUES TO VOTE TO WAIVE THE 6107 03:59:40,001 --> 03:59:42,000 BUDGET POINT OF ORDER. 6108 03:59:42,001 --> 03:59:43,000 OF COURSE I URGE THEM AS WELL TO 6109 03:59:43,001 --> 03:59:44,000 SUPPORT THE LEGISLATION WHEN 6110 03:59:44,001 --> 03:59:45,000 THAT VOTE OCCURS. 6111 03:59:45,001 --> 03:59:46,000 SO I'LL ASK THESE REMARKS BE 6112 03:59:46,001 --> 03:59:49,000 INCLUDED IN THE RECORD. 6113 03:59:49,001 --> 03:59:50,000 WITH THAT, I SEE MY COLLEAGUE 6114 03:59:50,001 --> 03:59:52,000 FROM -- WE'RE WAITING FOR OUR 6115 03:59:52,001 --> 03:59:54,000 KPHRAOEG FROM NEBRASKA -- OUR 6116 03:59:54,001 --> 03:59:57,000 COLLEAGUE FROM NEBRASKA TO COME 6117 03:59:57,001 --> 03:59:59,000 IN TO BE HEARD, SENATOR JOHANNS. 6118 03:59:59,001 --> 04:00:00,000 AND THEN SENATOR DORGAN TO BE 6119 04:00:00,001 --> 04:00:01,000 HEARD, WHICH WILL PRETTY MUCH 6120 04:00:01,001 --> 04:00:02,000 END THE DEBATE. 6121 04:00:02,001 --> 04:00:04,000 I'LL TAKE A MOMENT TO CONCLUDE 6122 04:00:04,001 --> 04:00:14,000 AND THEN THE VOTES SHALL OCCUR 6123 04:00:14,001 --> 04:00:15,000 AROUND 2:00. 6124 04:00:15,001 --> 04:00:17,000 MR. PRESIDENT, EVEN THOUGH TIME 6125 04:00:17,001 --> 04:00:19,000 MAY BE EXPIRED, OR WHATEVER, I 6126 04:00:19,001 --> 04:00:21,000 WANT TO ASK CONSENT THAT AT 6127 04:00:21,001 --> 04:00:23,000 LEAST 10 MINUTES BE RESERVED FOR 6128 04:00:23,001 --> 04:00:24,000 THE MINORITY TO BEEARD ON THIS BILL. 6129 04:00:24,001 --> 04:00:26,000 THE PRESIDING OFFICER: WITHOUT OBJECTION, SO ORDERED. 6130 04:00:26,001 --> 04:00:27,000 MR. DODD: THANK YOU. 6131 04:00:27,001 --> 04:00:28,000 MR. DORGAN: MR. PRESIDENT? THE PRESIDING OFFICER:HE 6132 04:00:28,001 --> 04:00:29,000 SENATOR FROM NORTH DAKOTA IS 6133 04:00:29,001 --> 04:00:31,000 RECOGNIZED. 6134 04:00:31,001 --> 04:00:32,000 MR. DORGAN: MR. PRESIDENT, I'M 6135 04:00:32,001 --> 04:00:35,000 GOING TO VOTE FOR THIS LEGISLATION. 6136 04:00:35,001 --> 04:00:37,000 IT IS A CONFERENCE REPORT ON 6137 04:00:37,001 --> 04:00:40,000 FINANCIAL REFORM. 6138 04:00:40,001 --> 04:00:41,000 AND BEFORE I DESCRIBE WHY I 6139 04:00:41,001 --> 04:00:44,000 THINK IT'S ESSENTIAL TO VOTE IN 6140 04:00:44,001 --> 04:00:46,000 FAVOR OF THIS, LET ME COMPLIMENT SENATOR DODD. 6141 04:00:46,001 --> 04:00:48,000 WE'VE HAD SOME DIFFERENCES HERE 6142 04:00:48,001 --> 04:00:49,000 AND THERE ON SOME ISSUES, BUT 6143 04:00:49,001 --> 04:00:52,000 THAT'S NOT UNUSUAL. 6144 04:00:52,001 --> 04:00:54,000 I THINK WHAT IS UNUSUAL THAT A 6145 04:00:54,001 --> 04:00:56,000 PIECE OF LEGISLATION THIS 6146 04:00:56,001 --> 04:00:57,000 COMPLICATED, THIS CONSEQUENTIAL 6147 04:00:57,001 --> 04:00:59,000 AND THIS LARGE GETS TO THIS 6148 04:00:59,001 --> 04:01:00,000 POINT SO WE WILL HAVE A FINAL 6149 04:01:00,001 --> 04:01:01,000 VOTE AND IT WILL GO TO THE 6150 04:01:01,001 --> 04:01:02,000 PRESIDENT FOR SIGNATURE. 6151 04:01:02,001 --> 04:01:04,000 AND IT'S GOING TO MAKE A DIFFERENCE. 6152 04:01:04,001 --> 04:01:06,000 IT'S NOT ALL THAT I WOULD WANT. 6153 04:01:06,001 --> 04:01:08,000 I WOULD HAVE WRITTEN SOME OF IT DIFFERENTLY. 6154 04:01:08,001 --> 04:01:10,000 I'M TALKING ABOUT FOR -- I'LL 6155 04:01:10,001 --> 04:01:11,000 TALK FOR MOMENT ABOUT SOME OF 6156 04:01:11,001 --> 04:01:12,000 THESE PIECES. 6157 04:01:12,001 --> 04:01:14,000 BUT THERE ARE PROVISIONS IN THIS 6158 04:01:14,001 --> 04:01:16,000 LEGISLATION THAT WILL PREVENT 6159 04:01:16,001 --> 04:01:19,000 THAT WHICH HAPPENED THAT ALMOST 6160 04:01:19,001 --> 04:01:21,000 CAUSED THIS COUNTRY TO HAVE A COMPLETE ECONOMIC COLLAPSE. 6161 04:01:21,001 --> 04:01:22,000 THAT'S THE PURPOSE OF WRITING 6162 04:01:22,001 --> 04:01:24,000 THIS LEGISLATION. 6163 04:01:24,001 --> 04:01:25,000 THIS LEGISLATION ON FINANCIAL 6164 04:01:25,001 --> 04:01:27,000 REFORM ESTABLISHES A NEW 6165 04:01:27,001 --> 04:01:28,000 INDEPENDENT BUREAU THAT WILL BE 6166 04:01:28,001 --> 04:01:30,000 HOUSED AT THE FEDERAL RESERVE 6167 04:01:30,001 --> 04:01:32,000 BOARD, BUT NOT REPORTING TO THE 6168 04:01:32,001 --> 04:01:34,000 FEDERAL RESERVE BOARD. 6169 04:01:34,001 --> 04:01:36,000 DEDICATED TO PROTECTING 6170 04:01:36,001 --> 04:01:37,000 CONSUMERS FROM FINANCIAL 6171 04:01:37,001 --> 04:01:39,000 PRODUCTS AND PRACTICES. 6172 04:01:39,001 --> 04:01:40,000 IT PUTS IN PLACE SYSTEMS TO 6173 04:01:40,001 --> 04:01:44,000 ENSURE TT TAXPAYER FUNDS WILL 6174 04:01:44,001 --> 04:01:45,000 NOT BE USED FOR WALL STREET 6175 04:01:45,001 --> 04:01:47,000 BAILOUTS IN THE FUTURE. 6176 04:01:47,001 --> 04:01:49,000 IT CREATES AN ADVANCED WARNING 6177 04:01:49,001 --> 04:01:51,000 SYSTEM, LOOKING OUT FOR TROUBLED 6178 04:01:51,001 --> 04:01:54,000 INSTITUTIONS TO MAKE SURE THAT 6179 04:01:54,001 --> 04:01:56,000 WE UNDERSTAND WHO THEY ARE AND 6180 04:01:56,001 --> 04:02:01,000 WHERE THEY ARE WHOSE COULD 6181 04:02:01,001 --> 04:02:03,000 THREATEN OUR FINANCIAL. 6182 04:02:03,001 --> 04:02:04,000 BY HEDGE FUND OWNERSHIP AND BANKS. 6183 04:02:04,001 --> 04:02:09,000 SO, I MEAN, THERE ARE A NUMBER 6184 04:02:09,001 --> 04:02:12,000 OF THINGS HERE THAT I THINK ARE 6185 04:02:12,001 --> 04:02:14,000 VERY IMPORTANT. 6186 04:02:14,001 --> 04:02:15,000 LET ME MAKE A POINT THAT THIS IS 6187 04:02:15,001 --> 04:02:16,000 A STARTING VOTE. 6188 04:02:16,001 --> 04:02:19,000 THIS VOTE THIS AFTERNOON IS A 6189 04:02:19,001 --> 04:02:22,000 STARTING POINT, NOT AN POINT. 6190 04:02:22,001 --> 04:02:24,000 AND I MAKE THE POINT BY SHOWING 6191 04:02:24,001 --> 04:02:27,000 THE -- THE HEADLINES THAT EXIST 6192 04:02:27,001 --> 04:02:30,000 IN THE NEWSPAPERS THESE DAYS 6193 04:02:30,001 --> 04:02:32,000 ABOUT THE FACT THAT THERE WILL 6194 04:02:32,001 --> 04:02:35,000 BE SUBSTANTIAL AMOUNTS OF WORK 6195 04:02:35,001 --> 04:02:37,000 DONE TO TRY TO CURB ACTIVITS 6196 04:02:37,001 --> 04:02:38,000 EVEN IN THE EXECUTIVE BRANCH 6197 04:02:38,001 --> 04:02:41,000 WITH RESPECT TO RULES AND 6198 04:02:41,001 --> 04:02:43,000 REGULATIONS WHICH ARE NOW 6199 04:02:43,001 --> 04:02:44,000 ESSENTIAL. 6200 04:02:44,001 --> 04:02:46,000 THE PRESIDING OFFICER: THE TIME 6201 04:02:46,001 --> 04:02:47,000 FOR THE MAJORITY HAS EXPIRED. 6202 04:02:47,001 --> 04:02:49,000 MR. DORGAN: MR. PRESIDENT, LET 6203 04:02:49,001 --> 04:02:50,000 ME ASK THE SENATOR FROM 6204 04:02:50,001 --> 04:02:53,000 CONNECTICUT. MY UNDERSTANDING IS THE 6205 04:02:53,001 --> 04:02:55,000 REPUBLICANS HAVE 10 MINUTES. 6206 04:02:55,001 --> 04:02:57,000 I BEGAN THE PROCESS BECAUSE THE 6207 04:02:57,001 --> 04:02:58,000 REPUBLICAN SENATOR WAS NOT HERE 6208 04:02:58,001 --> 04:03:00,000 TO CLAIM THAT. 6209 04:03:00,001 --> 04:03:01,000 I'LL BE HAPPY TO CEASE AT THIS 6210 04:03:01,001 --> 04:03:03,000 POINT IF HE WISHES TO TAKE HIS 6211 04:03:03,001 --> 04:03:05,000 10 MINUTES AND THEN COMPLETELY 6212 04:03:05,001 --> 04:03:07,000 STATEMENT OR I COULD COMPLETE MY 6213 04:03:07,001 --> 04:03:09,000 STATEMENT AND I THINK I'VE 6214 04:03:09,001 --> 04:03:10,000 SPOKEN THREE OR FOUR MINUTES. 6215 04:03:10,001 --> 04:03:12,000 MR. DODD: HOW MUCH MORE TIME 6216 04:03:12,001 --> 04:03:14,000 WOULD YOU NEED? 6217 04:03:14,001 --> 04:03:17,000 MR. DORGAN: PROBABLY SEVEN MORE 6218 04:03:17,001 --> 04:03:18,000 MR. DODD: WHY DON'T YOU DO THE 6219 04:03:18,001 --> 04:03:20,000 SEVEN MORE MINUTES THAT WAY IT 6220 04:03:20,001 --> 04:03:21,000 FOLLOWS MORE NATURALLY THAT WAY. 6221 04:03:21,001 --> 04:03:22,000 THE PRESIDING OFFICER: WITHOUT 6222 04:03:22,001 --> 04:03:23,000 OBJECTION, SO ORDERED. 6223 04:03:23,001 --> 04:03:25,000 MR. DORGAN: APPRECIATE THE 6224 04:03:25,001 --> 04:03:27,000 COURTESY OF THE SENATOR FROM NEBRASKA. 6225 04:03:27,001 --> 04:03:28,000 LET ME JUST SAY WE ALL 6226 04:03:28,001 --> 04:03:30,000 UNDERSTAND HOW WE GOT TO THIS 6227 04:03:30,001 --> 04:03:32,000 POINT AND WHY THIS LEGISLATION 6228 04:03:32,001 --> 04:03:34,000 IS TRYING TO 6229 04:03:34,001 --> 04:03:35,000 EVER HAPPENING AGAIN. 6230 04:03:35,001 --> 04:03:36,000 I'VE SHOWN THIS ON THE FLOOR 6231 04:03:36,001 --> 04:03:39,000 MANY TIMES. 6232 04:03:39,001 --> 04:03:40,000 CALLED ZOOM CREDIT, ADVERTISING 6233 04:03:40,001 --> 04:03:43,000 MORTGAGES. 6234 04:03:43,001 --> 04:03:44,000 AND, YOU KNOW, WE 6235 04:03:44,001 --> 04:03:45,000 PROVISION, THIS NEAR COLLAPSE OF 6236 04:03:45,001 --> 04:03:46,000 THE ECONOMY WITH COMPANIES 6237 04:03:46,001 --> 04:03:48,000 ADVERTISING THIS, CREDIT 6238 04:03:48,001 --> 04:03:50,000 APPROVAL IS JUST SECONDS AWAY. 6239 04:03:50,001 --> 04:03:52,000 GET ON THE FAST-TRACK AT ZOOM CREDIT. 6240 04:03:52,001 --> 04:03:54,000 AT THE SPEED OF LIGHT, ZOOM 6241 04:03:54,001 --> 04:03:55,000 CREDIT WILL PREAPPROVE YOU FOR A 6242 04:03:55,001 --> 04:03:56,000 CAR LOAN, HOME LOAN OR CREDIT 6243 04:03:56,001 --> 04:03:58,000 CARD. 6244 04:03:58,001 --> 04:03:59,000 EVEN IF YOUR CREDIT'S IN THE 6245 04:03:59,001 --> 04:04:00,000 TANK. 6246 04:04:00,001 --> 04:04:01,000 ZOOM CREDIT'S LIKE MONEY IN THE 6247 04:04:01,001 --> 04:04:04,000 BANK. 6248 04:04:04,001 --> 04:04:06,000 WE SPECIALIZE IN CREDIT REPAIR 6249 04:04:06,001 --> 04:04:08,000 AND DEBT CONSOLIDATION. 6250 04:04:08,001 --> 04:04:09,000 BANKRUPTCY, SLOW CREDIT, NO 6251 04:04:09,001 --> 04:04:12,000 CREDIT? WHO CARES. 6252 04:04:12,001 --> 04:04:13,000 YOUR 6253 04:04:13,001 --> 04:04:16,000 IN TROUBLE. 6254 04:04:16,001 --> 04:04:17,000 YOU KNOW WHAT, TODAY ON THE 6255 04:04:17,001 --> 04:04:19,000 INTERNET THIS EXISTS. 6256 04:04:19,001 --> 04:04:21,000 NOTHING'S CHANGED. 6257 04:04:21,001 --> 04:04:22,000 SPEEDY BAD CREDIT LOANS. 6258 04:04:22,001 --> 04:04:24,000 YOU WANT A LOAN BECAUSE YOU'VE 6259 04:04:24,001 --> 04:04:26,000 GOT BAD CREDIT, WANT TO GET A 6260 04:04:26,001 --> 04:04:28,000 LOAN, GO TO THE INTERNET TO THIS SITE. 6261 04:04:28,001 --> 04:04:32,000 I'M NOT ADVERTISING FOR THEM. 6262 04:04:32,001 --> 04:04:33,000 CLEARLY IT'S A BUNCH OF SHILOCKS 6263 04:04:33,001 --> 04:04:36,000 RUNNING THIS OPERATION. 6264 04:04:36,001 --> 04:04:37,000 BAD CREDIT, NO CREDIT, NO 6265 04:04:37,001 --> 04:04:40,000 PROBLEM. 6266 04:04:40,001 --> 04:04:42,000 NO DOUBLE-A' 6267 04:04:42,001 --> 04:04:43,000 WANT UNBELIEVABLE. 6268 04:04:43,001 --> 04:04:45,000 THAT'S ON THE INTERNET TODAY. 6269 04:04:45,001 --> 04:04:47,000 THIS IS ON INTERNET TODAY AND IT 6270 04:04:47,001 --> 04:04:48,000 DESCRIBES WHY WE HAVE TO PASS 6271 04:04:48,001 --> 04:04:49,000 THIS LEGISLATION AND WHAT WE'RE 6272 04:04:49,001 --> 04:04:51,000 TRYING TO DO TO PROTECT THE 6273 04:04:51,001 --> 04:04:52,000 AMERICAN CONSUMER AND WHY 6274 04:04:52,001 --> 04:04:56,000 REGULATIONS THAT COME FROM THIS 6275 04:04:56,001 --> 04:04:57,000 ARE SO IMPORTANT. 6276 04:04:57,001 --> 04:04:58,000 EASYLOANFORYOU. 6277 04:04:58,001 --> 04:05:01,000 INSTANT APPROVAL, REGARDLESS OF 6278 04:05:01,001 --> 04:05:03,000 APPROVAL IS GUARANTEED. 6279 04:05:03,001 --> 04:05:04,000 YOU KNOW, THIS SORT OF NONSENSE, 6280 04:05:04,001 --> 04:05:06,000 THAT'S NOT BUSINESS. 6281 04:05:06,001 --> 04:05:08,000 THAT'S NOT GOOD BUSINESS. 6282 04:05:08,001 --> 04:05:11,000 IT'S NOT A SENSIBLE WAY TO DO THINGS. 6283 04:05:11,001 --> 04:05:15,000 BUT IT'S WHAT NEARLY BANKRUPTED 6284 04:05:15,001 --> 04:05:19,000 THIS COUNTRY. 6285 04:05:19,001 --> 04:05:21,000 NOW, "THE WALL STREET JOURNAL," JULY 14. 6286 04:05:21,001 --> 04:05:24,000 LET ME READ THE FIRST SENTENCE, 6287 04:05:24,001 --> 04:05:26,000 "S RETURN LY DAVIS, 66 YEARS 6288 04:05:26,001 --> 04:05:28,000 OLD, RETIRED PHONE COMPANY 6289 04:05:28,001 --> 04:05:30,000 ADMINISTRATOR LIVES IN BOOK 6290 04:05:30,001 --> 04:05:33,000 LYNN, NEW YORK, MORE 6291 04:05:33,001 --> 04:05:34,000 THAN $33,000 IN DEBT, EARN 6292 04:05:34,001 --> 04:05:35,000 EARNS $2,400 A MONTH, FILED FOR 6293 04:05:35,001 --> 04:05:37,000 BANKRUPTCY LAST MONTH. 6294 04:05:37,001 --> 04:05:39,000 SHORTLY BEFORE THAT SHE RIPPED 6295 04:05:39,001 --> 04:05:41,000 OPEN AN ENVELOP FROM CAPITAL 6296 04:05:41,001 --> 04:05:42,000 ONE FINANCIAL CORPORATION WHICH 6297 04:05:42,001 --> 04:05:44,000 PITCHED HER A CREDIT CARD EVEN 6298 04:05:44,001 --> 04:05:47,000 THOUGH IT SUED HER FOUR YEARS 6299 04:05:47,001 --> 04:05:49,000 AGO TO RECOVER $4,400 SHE OWED 6300 04:05:49,001 --> 04:05:50,000 ON A DIFFERENT CREDIT CARD FROM 6301 04:05:50,001 --> 04:05:52,000 THE SAME BANK. 6302 04:05:52,001 --> 04:05:53,000 SHE SAYS -- QUOTE -- "AT SOME 6303 04:05:53,001 --> 04:05:57,000 POINT -- SHE'S QUOTING THE 6304 04:05:57,001 --> 04:05:59,000 LETTER FROM THIS CAPITAL ONE. 6305 04:05:59,001 --> 04:06:01,000 "AT SOME POINT WE LOST YOU AS A 6306 04:06:01,001 --> 04:06:03,000 CUSTOMER AND WE'D LIKE TO GET 6307 04:06:03,001 --> 04:06:04,000 YOU BACK." 6308 04:06:04,001 --> 04:06:06,000 MRS. DAVIS SAID SHE WAS STUNNED. 6309 04:06:06,001 --> 04:06:07,000 EVEN I WOULDN'T GIVE ME A CREDIT 6310 04:06:07,001 --> 04:06:09,000 CARD AT THIS POINT. 6311 04:06:09,001 --> 04:06:11,000 IT'S STILL GOING ON. 6312 04:06:11,001 --> 04:06:13,000 IT'S WHY PASSING THIS CONFERENCE 6313 04:06:13,001 --> 04:06:15,000 REPORT IS SO ESSENTIAL. 6314 04:06:15,001 --> 04:06:18,000 NOW, WOULD I HAVE WRITTEN IT DIFFERENTLY? 6315 04:06:18,001 --> 04:06:19,000 YES, I WOULD HAVE RESTORED PART 6316 04:06:19,001 --> 04:06:21,000 OF GLASS-STEAGALL. 6317 04:06:21,001 --> 04:06:22,000 10 YEARS AGO THAT WAS TAKEN APART. 6318 04:06:22,001 --> 04:06:24,000 THOSE PROTECTIONS WERE PUT IN 6319 04:06:24,001 --> 04:06:25,000 PLACE AFTER THE LAST GREAT 6320 04:06:25,001 --> 04:06:27,000 PROTECTION AND IT PROTECTED THIS 6321 04:06:27,001 --> 04:06:29,000 COUNTRY FOR 80 YEARS OR SO. 6322 04:06:29,001 --> 04:06:31,000 SHOULD HAVE BEEN PUT BACK TOGETHER. 6323 04:06:31,001 --> 04:06:35,000 I WOULD HAVE LIKED TO HAVE DONE THAT. 6324 04:06:35,001 --> 04:06:36,000 I WOULD BANNED NAKED CREDIT 6325 04:06:36,001 --> 04:06:37,000 DEFAULT SWAPS, I WOULD HAVE DONE 6326 04:06:37,001 --> 04:06:39,000 THAT. 6327 04:06:39,001 --> 04:06:43,000 I WOULD HAVE IMPOSED MORE 6328 04:06:43,001 --> 04:06:47,000 AGGRESSIVE CURVES ON PROPRIETY BANKING. 6329 04:06:47,001 --> 04:06:48,000 THE IF YOU HAVE TO BE 6330 04:06:48,001 --> 04:06:51,000 UNDERWRITTEN, YOU OUGHT NOT HAVE 6331 04:06:51,001 --> 04:06:54,000 A CASINO IN YOUR LOBBY, JUST AS 6332 04:06:54,001 --> 04:06:56,000 WELL HAVE A CRAPS TABLE IF 6333 04:06:56,001 --> 04:06:58,000 YOU'RE INVESTING IN PROPRIETY 6334 04:06:58,001 --> 04:07:00,000 TRADING IN NAKED DEFAULT SWAPS. 6335 04:07:00,001 --> 04:07:01,000 I WOULD HAVE DONE SOME THINGS 6336 04:07:01,001 --> 04:07:02,000 DIFFERENTLY. 6337 04:07:02,001 --> 04:07:05,000 HAVING SAID THAT, WHAT WAS DONE 6338 04:07:05,001 --> 04:07:06,000 IN THIS LEGISLATION IS A VERY 6339 04:07:06,001 --> 04:07:08,000 SUBSTANTIAL BEGINNING. 6340 04:07:08,001 --> 04:07:10,000 BUT IT IS NOT AN ENDING. 6341 04:07:10,001 --> 04:07:11,000 NUMBER TWO, 6342 04:07:11,001 --> 04:07:13,000 NUMBER ONE. 6343 04:07:13,001 --> 04:07:15,000 NUMBER TWO, THE REGULATORY 6344 04:07:15,001 --> 04:07:16,000 AGENCIES NOW HAVE TO DO A LOT OF 6345 04:07:16,001 --> 04:07:19,000 WORK TO MAKE THIS BILL WORK -- 6346 04:07:19,001 --> 04:07:20,000 TO MAKE THIS BILL EFFECTIVE. 6347 04:07:20,001 --> 04:07:21,000 TO STOP WHAT HAPPENED FROM EVER 6348 04:07:21,001 --> 04:07:23,000 HAPPENING AGAIN. 6349 04:07:23,001 --> 04:07:25,000 AND, FINALLY, I BELIEVE THERE 6350 04:07:25,001 --> 04:07:27,000 WILL BE ADDITIONAL NEED TO 6351 04:07:27,001 --> 04:07:28,000 LEGISLATE IN THE FUTURE TO 6352 04:07:28,001 --> 04:07:29,000 ADDRESS SOME OF THE THINGS THAT 6353 04:07:29,001 --> 04:07:31,000 I MENTIONED. 6354 04:07:31,001 --> 04:07:32,000 HAVING SAID ALL OF THAT, I 6355 04:07:32,001 --> 04:07:35,000 BELIEVE THE WORK THAT WAS DONE 6356 04:07:35,001 --> 04:07:36,000 TO GET TO THIS POINT IN A 6357 04:07:36,001 --> 04:07:38,000 CHAMBER THAT'S VERY DIFFICULT 6358 04:07:38,001 --> 04:07:41,000 FOR US TO ACCOMPLISH ANYTHING 6359 04:07:41,001 --> 04:07:44,000 IN, I THINK THIS IS A SUCCESS. 6360 04:07:44,001 --> 04:07:45,000 AND I, AGAIN, COMMEND MY 6361 04:07:45,001 --> 04:07:46,000 COLLEAGUE, PARTICULARLY SENATOR 6362 04:07:46,001 --> 04:07:48,000 DODD FROM CONNECTICUT, AND OTHER 6363 04:07:48,001 --> 04:07:49,000 COLLEAGUES WHO WORKED ON THIS 6364 04:07:49,001 --> 04:07:52,000 LEGISLATION IN A THOUGHTFUL WAY 6365 04:07:52,001 --> 04:07:53,000 TO TRY TO DECIDE HOW CAN WE STOP 6366 04:07:53,001 --> 04:07:54,000 THIS SORT OF THING? 6367 04:07:54,001 --> 04:07:55,000 THIS WAS -- AND WE ALL 6368 04:07:55,001 --> 04:07:57,000 UNDERSTOOD IT. 6369 04:07:57,001 --> 04:07:59,000 WE HEARD THESE 6370 04:07:59,001 --> 04:08:00,000 RADIO AND TELEVISION. 6371 04:08:00,001 --> 04:08:03,000 MASSIVE LOANS AND THEN THEY 6372 04:08:03,001 --> 04:08:04,000 SECURITIZE THEM, THEY'D TRADE 6373 04:08:04,001 --> 04:08:07,000 THE SECURITIES BACK UP AND 6374 04:08:07,001 --> 04:08:08,000 DERIVATIVES AND CREDIT DEFAULT SWAPS. 6375 04:08:08,001 --> 04:08:10,000 EVERYBODY WAS MAKING MONEY ON 6376 04:08:10,001 --> 04:08:11,000 ALL SIDES OF IT,UT THEY WERE 6377 04:08:11,001 --> 04:08:13,000 BUILDING A HOUSE OF CARDS THAT 6378 04:08:13,001 --> 04:08:14,000 CAME DOWN AND NEARLY COLLAPSED 6379 04:08:14,001 --> 04:08:17,000 THIS COUNTRY'S ENTIRE ECONOMY. 6380 04:08:17,001 --> 04:08:18,000 A LOT OF 6381 04:08:18,001 --> 04:08:19,000 THE PRICE FOR IT. 6382 04:08:19,001 --> 04:08:22,000 THEY GOT UP THIS MORNING WITHOUT 6383 04:08:22,001 --> 04:08:24,000 A JOB, MILLIONS AND MILLIONS OF 6384 04:08:24,001 --> 04:08:25,000 THEM AND THEY CAN'T FIND WORK. 6385 04:08:25,001 --> 04:08:27,000 THEY'RE THE VICTIMS OF THE 6386 04:08:27,001 --> 04:08:28,000 CESSPOOL OF GREED THAT WE'VE 6387 04:08:28,001 --> 04:08:30,000 WATCHED FOR FAR TOO LONG. 6388 04:08:30,001 --> 04:08:32,000 THIS LEGISLATION HAS GREAT MERIT 6389 04:08:32,001 --> 04:08:33,000 IN ADVANCING SOLUTIONS TO THESE 6390 04:08:33,001 --> 04:08:34,000 ISSUES, AND THAT'S WHY I'M GOING 6391 04:08:34,001 --> 04:08:36,000 0 VOTE YES. 6392 04:08:36,001 --> 04:08:38,000 IS IT -- TO VOTE YES. 6393 04:08:38,001 --> 04:08:40,000 IS IT PERFECT? NO. 6394 04:08:40,001 --> 04:08:42,000 IS IT AN END POINT? NO. 6395 04:08:42,001 --> 04:08:43,000 IT'S THE START POINT ON A 6396 04:08:43,001 --> 04:08:45,000 PROCESS THAT IS VERY IMPORTANT. 6397 04:08:45,001 --> 04:08:47,000 I HOPE THAT IN THE MONTHS AHEAD 6398 04:08:47,001 --> 04:08:48,000 THOSE CHARGED WITH CREATING THE 6399 04:08:48,001 --> 04:08:50,000 REGULATORY ENVIRONMENT TO FIX 6400 04:08:50,001 --> 04:08:51,000 THIS -- TO IMPLEMENT THIS 6401 04:08:51,001 --> 04:08:52,000 LEGISLATION WILL GET IT RIGHT. 6402 04:08:52,001 --> 04:08:54,000 BECAUSE THEY HAVE THE 6403 04:08:54,001 --> 04:08:56,000 OPPORTUNITY THE WAY THIS IS 6404 04:08:56,001 --> 04:08:58,000 WRITTEN TO GET THIS RIGHT IF 6405 04:08:58,001 --> 04:09:00,000 THEY'RE SMART AN EFFECTIVE AND 6406 04:09:00,001 --> 04:09:02,000 REALLY -- AND EFFECTIVE AND WANT 6407 04:09:02,001 --> 04:09:03,000 TO PROTECT THIS COUNTRY'S ECONOMY. 6408 04:09:03,001 --> 04:09:06,000 THANKS T 6409 04:09:06,001 --> 04:09:07,000 VOTE AS YES. 6410 04:09:07,001 --> 04:09:08,000 MR. PREDENT, I YIELD THE FLOOR. 6411 04:09:08,001 --> 04:09:09,000 A SENATOR: MR. PRESIDENT? 6412 04:09:09,001 --> 04:09:10,000 THE PRESIDING OFFICER: THE SENATOR FROM CONNECTICUT'S 6413 04:09:10,001 --> 04:09:13,000 RECOGNIZED 6414 04:09:13,001 --> 04:09:16,000 MR. DODD: VERY BRIEFLY BEFORE -- 6415 04:09:16,001 --> 04:09:17,000 BEFORE WE RECOGNIZE SENATOR JOHANNS. 6416 04:09:17,001 --> 04:09:18,000 I WANT TO THANK MY COLLEAGUE 6417 04:09:18,001 --> 04:09:20,000 FROM NORTH DAKOTA. 6418 04:09:20,001 --> 04:09:22,000 HE'S BEEN AN OUTSPOKEN ADVOCATES 6419 04:09:22,001 --> 04:09:24,000 ON BEHALF OF WORKING FAMILIES 6420 04:09:24,001 --> 04:09:26,000 AND FOR PEOPLE DURING THE TIME 6421 04:09:26,001 --> 04:09:27,000 THAT WE WORKED TOGETHER AND HE 6422 04:09:27,001 --> 04:09:29,000 HAS EXPRESSED CONSISTENTLY IN 6423 04:09:29,001 --> 04:09:30,000 THIS PROCESS ARE THE ONES THAT I 6424 04:09:30,001 --> 04:09:32,000 APPRECIATE VERY MUCH. 6425 04:09:32,001 --> 04:09:33,000 WE DID HAVE A COUPLE OF 6426 04:09:33,001 --> 04:09:34,000 DISAGREEMENTS ABOUT A 6427 04:09:34,001 --> 04:09:36,000 PROCEEDING, BUT, AS HE POINTS 6428 04:09:36,001 --> 04:09:37,000 OUT, THAT IS THE NORMAL PROCESS 6429 04:09:37,001 --> 04:09:39,000 OF DOING BUSINESS, BUT DONE WITH 6430 04:09:39,001 --> 04:09:40,000 A GREAT DEGREE OF CIVILITY 6431 04:09:40,001 --> 04:09:41,000 DURING OUR DEBATES AND 6432 04:09:41,001 --> 04:09:43,000 CONSIDERATIONS HERE. 6433 04:09:43,001 --> 04:09:45,000 I'M DEEPLY GREAT FULL FOR HIS 6434 04:09:45,001 --> 04:09:46,000 CONTRIBUTIONS AND THOSE OF -- 6435 04:09:46,001 --> 04:09:48,000 GRATEFUL FOR HIS CONTRIBUTIONS 6436 04:09:48,001 --> 04:09:50,000 AND THOSE OF 6437 04:09:50,001 --> 04:09:52,000 BENEFITED FROM THEM AND I THANK 6438 04:09:52,001 --> 04:09:54,000 MY FRIEND. 6439 04:09:54,001 --> 04:09:57,000 A SENATOR: MR. PRESIDENT? 6440 04:09:57,001 --> 04:10:00,000 THE PRESIDING OFFICER: THE 6441 04:10:00,001 --> 04:10:01,000 SENATOR FROM NEBRASKA'S 6442 04:10:01,001 --> 04:10:02,000 RECOGNIZED. 6443 04:10:02,001 --> 04:10:05,000 MR. JOHANNS: MR. PRESIDENT, I ASK UNANIMOUS CONSENT TO SPEAK 6444 04:10:05,001 --> 04:10:06,000 10 MINUTES AS IF IN MORNING 6445 04:10:06,001 --> 04:10:07,000 BUSINESS. 6446 04:10:07,001 --> 04:10:08,000 THE PRESIDING OFFICER: WITHOUT 6447 04:10:08,001 --> 04:10:09,000 OBJECTION, IT IS SO ORDERED. 6448 04:10:09,001 --> 04:10:11,000 MR. JOHANNS: MR. PRESIDENT, I 6449 04:10:11,001 --> 04:10:15,000 RI TODAY TO DISCUSS A BILL 6450 04:10:15,001 --> 04:10:19,000 THAT I HAVE INTRODUCED BECAUSE I 6451 04:10:19,001 --> 04:10:21,000 SEE A VERY UNFAIR BATTLE 6452 04:10:21,001 --> 04:10:22,000 UNFOLDING RIGHT IN FRONT OF US. 6453 04:10:22,001 --> 04:10:26,000 YOU SEE, MR. PRESIDENT, THE 6454 04:10:26,001 --> 04:10:28,000 BATTLE I FORESEE HERE IS THIS, 6455 04:10:28,001 --> 04:10:31,000 IN ONE CORNER WE HAVE THE 6456 04:10:31,001 --> 04:10:35,000 ENORMOUS RESOURCES OF THE FEDERAL GOVERNMENT. 6457 04:10:35,001 --> 04:10:38,000 IN THE OTHER CORNER, CITIES AND 6458 04:10:38,001 --> 04:10:40,000 STATES WITH VERY LIMITED 6459 04:10:40,001 --> 04:10:41,000 RESOURCES, ESPECIALLY IN THESE 6460 04:10:41,001 --> 04:10:44,000 ECONOMIC TIMES. 6461 04:10:44,001 --> 04:10:46,000 BUT WITH A GOOD-FAITH DESIRE TO 6462 04:10:46,001 --> 04:10:48,000 PROTECT THEIR COMMUNITIES. 6463 04:10:48,001 --> 04:10:51,000 MR. PRESIDENT, WHAT I'M SPEAKING 6464 04:10:51,001 --> 04:10:54,000 OF TODAY AND WHAT MY LEGISLATION 6465 04:10:54,001 --> 04:10:56,000 GOES TO IS THE FEDERAL 6466 04:10:56,001 --> 04:11:00,000 GOVERNMENT'S USE OF LITIGATION 6467 04:11:00,001 --> 04:11:01,000 TO INSERT ITSELF INTO STATE AND 6468 04:11:01,001 --> 04:11:03,000 POTENTIALLY LOCAL IMMIGRATION 6469 04:11:03,001 --> 04:11:06,000 LAWS. 6470 04:11:06,001 --> 04:11:07,000 NOW, MR. PRESIDENT, I RISE TODAY 6471 04:11:07,001 --> 04:11:09,000 WITH A GREAT DEAL OF KNOWLEDGE 6472 04:11:09,001 --> 04:11:13,000 ABOUT THIS. 6473 04:11:13,001 --> 04:11:14,000 AS A FORMER MAYOR AND COUNTY 6474 04:11:14,001 --> 04:11:16,000 COMMISSIONER, CITY COUNCIL 6475 04:11:16,001 --> 04:11:18,000 MEMBER AND GOVERNOR, I KNOW WHAT 6476 04:11:18,001 --> 04:11:20,000 IT'S LIKE WHEN THE FEDERAL 6477 04:11:20,001 --> 04:11:23,000 GOVERNMENT SWOOPS IN AND BRINGS 6478 04:11:23,001 --> 04:11:26,000 ITS POWER TBEAR ON AN ISSUE. 6479 04:11:26,001 --> 04:11:28,000 I'VE SEEN IT FROM BOTH SIDES. 6480 04:11:28,001 --> 04:11:31,000 HAVING ALSO SERVED AS A MEMBER 6481 04:11:31,001 --> 04:11:33,000 OF THE PRESIDENT'S CABINET. 6482 04:11:33,001 --> 04:11:34,000 I KNOW THAT WHEN THE RESOURCES 6483 04:11:34,001 --> 04:11:38,000 OF THE FEDERAL GOVERNMENT ARE 6484 04:11:38,001 --> 04:11:41,000 USED TO WEIGH IN WITH 6485 04:11:41,001 --> 04:11:43,000 LITIGATION, IT'S CRUSHING. 6486 04:11:43,001 --> 04:11:47,000 THE ADMINISTRATION CAN SEND IN A 6487 04:11:47,001 --> 04:11:48,000 TEAM OF LAWYERS AND OVERWHELM -- 6488 04:11:48,001 --> 04:11:53,000 ABSOLUTELY OVERWHELM THE 6489 04:11:53,001 --> 04:11:54,000 RESOURCES OF A COMMUNITY OR A 6490 04:11:54,001 --> 04:11:56,000 STATE. 6491 04:11:56,001 --> 04:11:59,000 LITIGATION BRINGS WITH IT A HUGE 6492 04:11:59,001 --> 04:12:02,000 FINANCIAL BURDEN FOR CITIES AND STATES. 6493 04:12:02,001 --> 04:12:06,000 IN FACT, LITIGATION CAN AND DOES 6494 04:12:06,001 --> 04:12:08,000 HAVE A CHILLING EFFECT ON THE 6495 04:12:08,001 --> 04:12:10,000 LOCAL DECISION-MAKING PROCESS 6496 04:12:10,001 --> 04:12:13,000 EVEN IF LOCAL LEADERS BELIEVE 6497 04:12:13,001 --> 04:12:16,000 THAT THEIR ACTION IN GOOD FAITH 6498 04:12:16,001 --> 04:12:18,000 IS APPROPRIATE AND NECESSARY. 6499 04:12:18,001 --> 04:12:20,000 AND I BELIEVE THAT'S THE EXACT 6500 04:12:20,001 --> 04:12:22,000 REACTION THAT THIS 6501 04:12:22,001 --> 04:12:25,000 ADMINISTRATION IS HOPING TO 6502 04:12:25,001 --> 04:12:28,000 CAUSE AMONG COMMUNITIES AND 6503 04:12:28,001 --> 04:12:30,000 STATES ACROSS THIS NATION WHO 6504 04:12:30,001 --> 04:12:32,000 ARE CONSIDERING ACTION ON 6505 04:12:32,001 --> 04:12:34,000 IMMIGRATION ISSUES. 6506 04:12:34,001 --> 04:12:35,000 IN THIS CASE I BELIEVE 6507 04:12:35,001 --> 04:12:38,000 LITIGATION IS BEING USED TO SEND 6508 04:12:38,001 --> 04:12:41,000 A WARNING TO OTHER COMMUNITIES, 6509 04:12:41,001 --> 04:12:42,000 TO OTHER STATES THAT MIGHT BE 6510 04:12:42,001 --> 04:12:44,000 CONSIDERING TAKING ACTION IN 6511 04:12:44,001 --> 04:12:45,000 THIS ARENA. 6512 04:12:45,001 --> 04:12:48,000 THE ADMINISTRATION'S CLAIM THAT 6513 04:12:48,001 --> 04:12:50,000 THE FEDERAL GOVERNMENT HAS SOLE 6514 04:12:50,001 --> 04:12:53,000 AUTHORITY TO ENFORCE IMMIGRATION 6515 04:12:53,001 --> 04:12:55,000 LAWS BECAUSE OF THE SUPREMACY 6516 04:12:55,001 --> 04:12:59,000 CLAUSE OF THE CONSTITUTION IS, 6517 04:12:59,001 --> 04:13:01,000 IN FACT, INCONSISTENT WITH THE 6518 04:13:01,001 --> 04:13:02,000 PRESIDENT'S OWN INTERL 6519 04:13:02,001 --> 04:13:05,000 POLICIES. 6520 04:13:05,001 --> 04:13:09,000 JUST LAST YEAR PRESIDENT OBAMA 6521 04:13:09,001 --> 04:13:12,000 AUTHORED A MEMO, SENT IT OUT TO 6522 04:13:12,001 --> 04:13:14,000 ALL FEDERAL DEPARTMENTS AND 6523 04:13:14,001 --> 04:13:16,000 AGENCIES REQUIRING SERIOUS AND 6524 04:13:16,001 --> 04:13:18,000 CAREFUL CONSIDERATION WHEN USING 6525 04:13:18,001 --> 04:13:21,000 FEDERAL PREEMPTION OF STATE 6526 04:13:21,001 --> 04:13:25,000 LAWS. 6527 04:13:25,001 --> 04:13:29,000 IN THIS MEMO DATED MAY 20, 2009, 6528 04:13:29,001 --> 04:13:31,000 WITH THE SUBJECT, "PREEMPTION," 6529 04:13:31,001 --> 04:13:33,000 THE PRESIDENT STATING AND I'M 6530 04:13:33,001 --> 04:13:35,000 QUOTING, "THE PURPOSE OF THIS 6531 04:13:35,001 --> 04:13:36,000 MEMORANDUM IS TO STATE THE 6532 04:13:36,001 --> 04:13:37,000 GENERAL POLICY OF MY 6533 04:13:37,001 --> 04:13:40,000 ADMINISTRATION THAT PREEMPTION 6534 04:13:40,001 --> 04:13:41,000 OF STATE LAW BY EXECUTIVE 6535 04:13:41,001 --> 04:13:44,000 DEPARTMENTS AND AGENCIES SHOULD 6536 04:13:44,001 --> 04:13:46,000 BE TAKEN ONLY WITH FULL 6537 04:13:46,001 --> 04:13:48,000 CONSIDERATION OF LEGITIMATE 6538 04:13:48,001 --> 04:13:52,000 PREROGATIVES OF THE STATES AND 6539 04:13:52,001 --> 04:13:54,000 WITH SUFFICIENT LEGAL BASIS FOR 6540 04:13:54,001 --> 04:13:55,000 PREEMPTION. 6541 04:13:55,001 --> 04:14:00,000 WELL, THAT SEEMS CLEAR. 6542 04:14:00,001 --> 04:14:01,000 THE MEMO WENT ON FURTHER TO SAY 6543 04:14:01,001 --> 04:14:02,000 EXECUTIVE DEPARTMENTS AND 6544 04:14:02,001 --> 04:14:05,000 AGENCIES SHOULD BE MINDFUL THAT 6545 04:14:05,001 --> 04:14:06,000 IN OUR FEDERAL SYSTEM, THE 6546 04:14:06,001 --> 04:14:07,000 CITIZENS OF THE SEVERAL STATES 6547 04:14:07,001 --> 04:14:10,000 HAVE THE DISTINCTIVE 6548 04:14:10,001 --> 04:14:12,000 CIRCUMSTANCES AND VALUES IN THAT 6549 04:14:12,001 --> 04:14:15,000 IN MANY INSTANCE IT'S IS 6550 04:14:15,001 --> 04:14:17,000 APPROPRIATE FOR THEM TO APPLY TO 6551 04:14:17,001 --> 04:14:19,000 THEMSELVES RULES AND PNCIPLES 6552 04:14:19,001 --> 04:14:21,000 THAT REFLECT THOSE CIRCUMSTANCES 6553 04:14:21,001 --> 04:14:23,000 AND VALUES. 6554 04:14:23,001 --> 04:14:26,000 AND THEN, FINALLY, THE PRESIDENT 6555 04:14:26,001 --> 04:14:29,000 GOES ON TO SAY THIS, "IT IS ONE 6556 04:14:29,001 --> 04:14:32,000 OF THE HAPPY INCIDENTS OF THE 6557 04:14:32,001 --> 04:14:35,000 FERAL SYSTEM THAT A SINGLE 6558 04:14:35,001 --> 04:14:38,000 COURAGEOUS STATE MAY, IF ITS 6559 04:14:38,001 --> 04:14:42,000 CITIZENS CHOOSE, SERVE AS A 6560 04:14:42,001 --> 04:14:44,000 LABORATORY AND TRY NOVEL, SOCIAL 6561 04:14:44,001 --> 04:14:45,000 AND EXPERIMENTAL EXPERIMENTS 6562 04:14:45,001 --> 04:14:49,000 WITHOUT RISK TO THE REST OF THE 6563 04:14:49,001 --> 04:14:50,000 COUNTRY. 6564 04:14:50,001 --> 04:14:51,000 MR. PRESIDENT, I ASK UNANIMOUS 6565 04:14:51,001 --> 04:14:52,000 CONSENT THAT A COPY OF THIS MEMO 6566 04:14:52,001 --> 04:14:53,000 BE INSERTED? 6567 04:14:53,001 --> 04:14:57,000 THE RECORD. THE PRESIDING OFFICER: WITHOUT 6568 04:14:57,001 --> 04:14:59,000 OBCTION, SO ORDERED. 6569 04:14:59,001 --> 04:15:02,000 MR. JOHANNS: SO IF THE USE FOR 6570 04:15:02,001 --> 04:15:03,000 FEDERAL POWER TO PREEMPT A STATE 6571 04:15:03,001 --> 04:15:06,000 REQUIRES SUCH AN EXTREMELY HIGH 6572 04:15:06,001 --> 04:15:08,000 THRESHOLD, HOW CAN ONE RECONCILE 6573 04:15:08,001 --> 04:15:12,000 THAT WITH THE ADMINISTRATION'S 6574 04:15:12,001 --> 04:15:15,000 DECISION TO FILE A LAWSUIT? 6575 04:15:15,001 --> 04:15:16,000 MY BILL SENDS A MESSAGE TO THE 6576 04:15:16,001 --> 04:15:20,000 ADMINISTRATION THAT IT CANNOT 6577 04:15:20,001 --> 04:15:22,000 USE THE CRUSHING FORCE AND 6578 04:15:22,001 --> 04:15:24,000 THREAT AND REALITY OF LITIGATION 6579 04:15:24,001 --> 04:15:29,000 TO INTIMIDATE LOCAL OFFICIALS OR 6580 04:15:29,001 --> 04:15:31,000 TO SCARE THEM INTO INACTION. 6581 04:15:31,001 --> 04:15:33,000 IT WOULD ALLOW A STATE OR 6582 04:15:33,001 --> 04:15:36,000 MUNICIPAL GOVERNMENT THE 6583 04:15:36,001 --> 04:15:39,000 ABILITY, THE RIGHT TO RECOVER 6584 04:15:39,001 --> 04:15:41,000 ATTORNEYS' FEES AND OTHER COURT 6585 04:15:41,001 --> 04:15:44,000 COSTS ASSOCIATED WITH DEFENDING 6586 04:15:44,001 --> 04:15:46,000 A FEDERAL CHALLENGE OF THEIR 6587 04:15:46,001 --> 04:15:50,000 IMMIGRATION LAWS. 6588 04:15:50,001 --> 04:15:53,000 IN OTHER WORDS, MR. PRESIDENT, 6589 04:15:53,001 --> 04:15:54,000 THIS STRAIGHTFORWARD LEGISLATION 6590 04:15:54,001 --> 04:15:58,000 JUST SIMPLY LEVELS T PLAYING 6591 04:15:58,001 --> 04:16:00,000 FIELD BETWEEN THE HUGE POWER OF 6592 04:16:00,001 --> 04:16:03,000 THE FEDERAL GOVERNMENT IN ONE 6593 04:16:03,001 --> 04:16:05,000 CORNER, AS I SAID, AND THE RIGHT 6594 04:16:05,001 --> 04:16:08,000 OF LOCAL COMMUNITIES AND STATES 6595 04:16:08,001 --> 04:16:09,000 TO PASS LAWS TO PROTECT THEIR 6596 04:16:09,001 --> 04:16:12,000 CITIZENS. 6597 04:16:12,001 --> 04:16:13,000 IT CARRIES A SIMPLE MESSAGE TO 6598 04:16:13,001 --> 04:16:17,000 ANY ADMINISTRATION: 6599 04:16:17,001 --> 04:16:20,000 IF YOU FILE A LAWSUIT IN LIEU, 6600 04:16:20,001 --> 04:16:24,000 CITIES AND STATES WON'T FACE 6601 04:16:24,001 --> 04:16:25,000 DEPLETED RESOURCES AS A RESULT. 6602 04:16:25,001 --> 04:16:27,000 MY BILL ENSURES THAT WHEN THE 6603 04:16:27,001 --> 04:16:30,000 FEDERAL GOVERNMENT TAKES O 6604 04:16:30,001 --> 04:16:31,000 COMMUNITIES IN PORT, THE REASONS 6605 04:16:31,001 --> 04:16:34,000 ARE PURE. 6606 04:16:34,001 --> 04:16:36,000 AND BASED IN LAW, OR ELSE THE 6607 04:16:36,001 --> 04:16:39,000 IMPACT ON OUR COMMUNITIES WILL 6608 04:16:39,001 --> 04:16:41,000 BE NEUTRALIZED. 6609 04:16:41,001 --> 04:16:43,000 THE ADMINISTRATION SHOULD FOCUS 6610 04:16:43,001 --> 04:16:46,000 TIME AND RESOURCES ON WHAT 6611 04:16:46,001 --> 04:16:49,000 REALLY IS THE CRUX OF THIS 6612 04:16:49,001 --> 04:16:53,000 ISSUE, AND THAT IS SECURING OUR 6613 04:16:53,001 --> 04:16:54,000 BORDERS, AND DOING THE JOB IN 6614 04:16:54,001 --> 04:16:57,000 ENFORCING EXISTING IMMIGRATION 6615 04:16:57,001 --> 04:17:00,000 LAWS AND NOT USING LITIGATION AS 6616 04:17:00,001 --> 04:17:02,000 A TOOL TO SEND A MESSAGE. 6617 04:17:02,001 --> 04:17:05,000 I ENCOURAGE MY COLLEAGUES TO 6618 04:17:05,001 --> 04:17:07,000 SIGN ON AND COSPONSOR THIS 6619 04:17:07,001 --> 04:17:09,000 COMMONSENSE MEASURE AND LEVEL 6620 04:17:09,001 --> 04:17:11,000 THE PLAYING FIELD FOR 6621 04:17:11,001 --> 04:17:15,000 COMMUNITIES WHEN THEY ARE FORCED 6622 04:17:15,001 --> 04:17:16,000 TO DEFEND THEMSELVES AGAINST THE 6623 04:17:16,001 --> 04:17:19,000 ENORMOUS, NEARLY UNLIMITED POWER 6624 04:17:19,001 --> 04:17:20,000 OF THE FEDERAL GOVERNMENT. 6625 04:17:20,001 --> 04:17:21,000 MR. PRESIDENT, THANK YOU. 6626 04:17:21,001 --> 04:17:22,000 I YIELD THE FLOOR. 6627 04:17:22,001 --> 04:17:24,000 I SUGGEST THE ABSENCE OF A 6628 04:17:24,001 --> 04:17:26,000 QUORUM. OH, I YIELD THE FLOOR. 6629 04:17:26,001 --> 04:17:27,000 THE PRESIDING OFFICER: 6630 04:17:27,001 --> 04:17:29,000 THE SENATOR WITHHOLD? 6631 04:17:29,001 --> 04:17:31,000 THE SENATOR FROM MICHIGAN IS RECOGNIZED. 6632 04:17:31,001 --> 04:17:34,000 MR. LEVIN: IF THERE IS NO ONE 6633 04:17:34,001 --> 04:17:35,000 ON THE MINORITY SIDE WAITING TO 6634 04:17:35,001 --> 04:17:36,000 SPEAK, I WOULD ASK UNANIMOUS 6635 04:17:36,001 --> 04:17:38,000 CONSENT THAT I BE ALLOWED TO 6636 04:17:38,001 --> 04:17:39,000 SPEAK FOR FOUR MINUTES. THE PRESIDING OFFICER: WITHOUT 6637 04:17:39,001 --> 04:17:40,000 OBJECTION, SO ORDERED. 6638 04:17:40,001 --> 04:17:41,000 MR. LEVIN: MR. PRESIDENT, FOR 6639 04:17:41,001 --> 04:17:48,000 TOO LONG, TOO MANY FIRMS ON WALL 6640 04:17:48,001 --> 04:17:50,000 STREET HAVE HA REIGN TO 6641 04:17:50,001 --> 04:17:51,000 PROFIT, TO PROSPER FROM THEIR 6642 04:17:51,001 --> 04:17:53,000 RISKY BETS WHEN THEY PAN OUT, 6643 04:17:53,001 --> 04:17:56,000 AND TO HAVE THE TAXPAYERS COVER 6644 04:17:56,001 --> 04:17:57,000 TH 6645 04:17:57,001 --> 04:17:58,000 OUT. 6646 04:17:58,001 --> 04:17:59,000 FOR TOO LONG THERE HAS BEEN NO 6647 04:17:59,001 --> 04:18:00,000 COP ON THE BEAT ON WALL STREET. 6648 04:18:00,001 --> 04:18:02,000 THAT MUST END, AND WE CAN END IT 6649 04:18:02,001 --> 04:18:03,000 TODAY BYASSING THE DODD-FRANK 6650 04:18:03,001 --> 04:18:05,000 BILL. 6651 04:18:05,001 --> 04:18:07,000 THE LEGISLATION BEFORE US WILL 6652 04:18:07,001 --> 04:18:10,000 REBUILD THE FIREWALL BETWEEN THE 6653 04:18:10,001 --> 04:18:11,000 WORST HIGH-RISK EXCESSES OF WALL 6654 04:18:11,001 --> 04:18:13,000 STREET AND THE JOBS AND HOMES 6655 04:18:13,001 --> 04:18:15,000 AND FIEWSMS OF ORDINARY 6656 04:18:15,001 --> 04:18:16,000 AMERICANS -- AND FUTURES OF 6657 04:18:16,001 --> 04:18:17,000 ORDINARY AMERICANS. 6658 04:18:17,001 --> 04:18:18,000 THE PERMANENT SUBCOMMITTEE ON 6659 04:18:18,001 --> 04:18:20,000 INVESTIGATIONS WHICH I CHAIR 6660 04:18:20,001 --> 04:18:22,000 SPENT 18 MONTHS AND HELD FOUR 6661 04:18:22,001 --> 04:18:24,000 HEARINGS INVESTIGATING THE 6662 04:18:24,001 --> 04:18:25,000 CAUSES OF THE FINANCIAL CRISIS. 6663 04:18:25,001 --> 04:18:27,000 THE BILL THAT SENATOR DODD AND 6664 04:18:27,001 --> 04:18:29,000 SO MANY OTHERS HAVE CRAFT WILLED 6665 04:18:29,001 --> 04:18:31,000 DO MUCH TO REIN IN THE PROBLEMS 6666 04:18:31,001 --> 04:18:33,000 THAT WE IDENTIFY IN OUR FOUR 6667 04:18:33,001 --> 04:18:35,000 HEARINGS AND DURING OUR 6668 04:18:35,001 --> 04:18:36,000 INVESTIGATION, AND I GREATLY 6669 04:18:36,001 --> 04:18:38,000 APPRECIATE THE RECOGNITION OF 6670 04:18:38,001 --> 04:18:40,000 THE ROLE OF OUR WORK ON THE 6671 04:18:40,001 --> 04:18:41,000 SUBCOMMITTEE IN SENATOR DODD'S 6672 04:18:41,001 --> 04:18:43,000 REMARKS LAST NIGHT. 6673 04:18:43,001 --> 04:18:44,000 THIS BILL WILL PREVENT MORTGAGE 6674 04:18:44,001 --> 04:18:45,000 LENDERS LIKE WASHINGTON MUTUAL, 6675 04:18:45,001 --> 04:18:48,000 THE SUBJECT OF OUR FIRST 6676 04:18:48,001 --> 04:18:50,000 HEING, FROM MAKING LIAR LOANS 6677 04:18:50,001 --> 04:18:52,000 TO BORROWERS WHO CAN'T REPAY, 6678 04:18:52,001 --> 04:18:54,000 FROM PAYING THEIR SALESPEOPLE 6679 04:18:54,001 --> 04:18:55,000 MORE FOR SELLING LOANS WITH 6680 04:18:55,001 --> 04:18:58,000 HIGHER INTEREST RATES AND FROM 6681 04:18:58,001 --> 04:18:59,000 UNLOADING ALL THE RISK FROM 6682 04:18:59,001 --> 04:19:01,000 THEIR RECKLESS LOANS ONTO THE 6683 04:19:01,001 --> 04:19:03,000 REST OF THE FINANCIAL SYSTEM. 6684 04:19:03,001 --> 04:19:04,000 THIS BILL WILL DISSOLVE THE 6685 04:19:04,001 --> 04:19:06,000 OFFICE OF THRIFT SUPERVISION, 6686 04:19:06,001 --> 04:19:10,000 WHICH LOOKED THE OTHER WAY, 6687 04:19:10,001 --> 04:19:17,000 DESPITE ABUNDANT EVIDENCE OF 6688 04:19:17,001 --> 04:19:19,000 WASHINGTON MUTUA MUTUAL'S ACTION. 6689 04:19:19,001 --> 04:19:23,000 THIOUR 6690 04:19:23,001 --> 04:19:25,000 THIRD HEARING SHOWED THAT 6691 04:19:25,001 --> 04:19:27,000 INVESTORS WERE MISLED. 6692 04:19:27,001 --> 04:19:28,000 THE RATINGS WERE PAID FOR BY THE 6693 04:19:28,001 --> 04:19:29,000 VERY SAME COMPANIES THAT 6694 04:19:29,001 --> 04:19:30,000 PRODUCED THE PRODUCTS BEING 6695 04:19:30,001 --> 04:19:31,000 RATED. 6696 04:19:31,001 --> 04:19:32,000 WHICH IS A CLEAR CONFLICT OF 6697 04:19:32,001 --> 04:19:33,000 INTEREST. 6698 04:19:33,001 --> 04:19:36,000 THE BILL BEFORE US WILL REIN IN 6699 04:19:36,001 --> 04:19:38,000 THE ABUSIVE PRACTICES OF 6700 04:19:38,001 --> 04:19:39,000 INVESTMENT BANKS LIKE GOLDM 6701 04:19:39,001 --> 04:19:42,000 SAMPLES THE SUBJECT OF OUR FOURTH HEARING. 6702 04:19:42,001 --> 04:19:44,000 IT WILL SHARPLY LIMIT THEIR 6703 04:19:44,001 --> 04:19:46,000 RISKY PROPRIETARY TRADING. 6704 04:19:46,001 --> 04:19:48,000 IT WILL STOP THE EGREGIOUS 6705 04:19:48,001 --> 04:19:50,000 CONFCTS OF INTEREST THAT 6706 04:19:50,001 --> 04:19:53,000 RESULT WHEN THESE FIRMS PACKAGE 6707 04:19:53,001 --> 04:19:54,000 AND SELL INVESTMENT PRODUCTS, 6708 04:19:54,001 --> 04:19:56,000 OFTEN CONTAING JUNK THAT THEY 6709 04:19:56,001 --> 04:20:00,000 WANT TO DISPOSE OF, AND THEN 6710 04:20:00,001 --> 04:20:03,000 MAKE A BUNDLE BETTING AGAINST 6711 04:20:03,001 --> 04:20:05,000 THOSE VERY SAME P 6712 04:20:05,001 --> 04:20:08,000 NOW, MR. PRESIDENT, THOSE WHO 6713 04:20:08,001 --> 04:20:11,000 CLAIM THAT THIS BILL FAILS TO 6714 04:20:11,001 --> 04:20:15,000 REIN IN WALL STREET CANNOT 6715 04:20:15,001 --> 04:20:17,000 EXPLAIN THE MASSIVE AMOUNTS OF 6716 04:20:17,001 --> 04:20:18,000 EFFORT AND MONEY THAT WALL 6717 04:20:18,001 --> 04:20:20,000 STREET HAS SPENT TO DEFEAT THIS 6718 04:20:20,001 --> 04:20:23,000 BILL. 6719 04:20:23,001 --> 04:20:24,000 IF WALL STREET LIKES THIS BILL, 6720 04:20:24,001 --> 04:20:26,000 IT SURE HAS A FUNNY WAY OF 6721 04:20:26,001 --> 04:20:28,000 SHOWING IT. 6722 04:20:28,001 --> 04:20:29,000 THE EVIDENCE FROM OUR 6723 04:20:29,001 --> 04:20:30,000 INVESTIGATION AND FROM SO MANY 6724 04:20:30,001 --> 04:20:33,000 OTHER SOURCES IS CLEAR: 6725 04:20:33,001 --> 04:20:35,000 WE MUST PUT A COP BACK ON THE 6726 04:20:35,001 --> 04:20:38,000 BEAT ON WALL STREET SO THAT THE 6727 04:20:38,001 --> 04:20:39,000 JOBS, HOMES, AND FUTURES OF 6728 04:20:39,001 --> 04:20:42,000 AMERICANS ARE NOT AGAIN 6729 04:20:42,001 --> 04:20:44,000 DESTROYED BY EXCESSIVE GREED. 6730 04:20:44,001 --> 04:20:45,000 I COMMEND SENATOR DODD AND HIS 6731 04:20:45,001 --> 04:20:47,000 STAFF AND ALL THOSE WHO HAVE 6732 04:20:47,001 --> 04:20:49,000 BROUGHT US TO THIS HISTORIC 6733 04:20:49,001 --> 04:20:51,000 MOMENT, AND MORE THAN ANYTHING 6734 04:20:51,001 --> 04:20:52,000 ELSE, MR. PRESIDENT, IT IS THE 6735 04:20:52,001 --> 04:20:55,000 POWER OF SENATOR DODD'S 6736 04:20:55,001 --> 04:20:57,000 ARGUMENTS AND THE DEEP RESPECT 6737 04:20:57,001 --> 04:20:58,000 FOR HIM AMO 6738 04:20:58,001 --> 04:21:02,000 THIS BODY THAT HAVE BROUGHT US 6739 04:21:02,001 --> 04:21:04,000 TO THE FINISH LINE. 6740 04:21:04,001 --> 04:21:07,000 I 6741 04:21:07,001 --> 04:21:10,000 THE ABSENCE OF A QUORUM. 6742 04:21:10,001 --> 04:21:12,000 MR. DODD: BEFORE 6743 04:21:12,001 --> 04:21:14,000 QUORUM, MR. PRESIDENT, LET ME 6744 04:21:14,001 --> 04:21:15,000 RECOGNIZE MY GREAT FRIEND. 6745 04:21:15,001 --> 04:21:16,000 THE PRESIDING OFFICER: THE SENATOR CONNECTICUT IS 6746 04:21:16,001 --> 04:21:23,000 RECOGNIZED. 6747 04:21:23,001 --> 04:21:24,000 MR. DODD: SWERVE WE SERVED A LONG 6748 04:21:24,001 --> 04:21:26,000 TIME, MR. PRESIDENT. 6749 04:21:26,001 --> 04:21:27,000 I POINTED OUT YESTERDAY, I'M NOT 6750 04:21:27,001 --> 04:21:29,000 SURE MY COLLEAGUE WAS HERE BUT 6751 04:21:29,001 --> 04:21:31,000 POINTED OUT THAT THE HEARINGS 6752 04:21:31,001 --> 04:21:33,000 THAT YOU HELD JUST PRIOR -- AND 6753 04:21:33,001 --> 04:21:34,000 I'M SURE PEOPLE THINK WE 6754 04:21:34,001 --> 04:21:36,000 ORCHESTRATE ALL OF THESE THINGS. 6755 04:21:36,001 --> 04:21:37,000 WE LOOK FAR ORGANIZED THAN WE 6756 04:21:37,001 --> 04:21:39,000 USUALLY ARE AROUND HERE. 6757 04:21:39,001 --> 04:21:40,000 THE FACT OF THE MATTER IS THE 6758 04:21:40,001 --> 04:21:41,000 SENATOR FROM MICHIGAN WENT OFF 6759 04:21:41,001 --> 04:21:43,000 AND HAD PLANNED FOR MONTHS IN 6760 04:21:43,001 --> 04:21:45,000 FACT THE AMOUNT OF WORK THAT HE 6761 04:21:45,001 --> 04:21:48,000 AND HIS STAFF DID FOR MONTHS IN 6762 04:21:48,001 --> 04:21:51,000 PREPARATION FOR THOSE HEARINGS 6763 04:21:51,001 --> 04:21:54,000 THAT I THINK THREW A TREMENDOUS 6764 04:21:54,001 --> 04:21:55,000 AMOUNT OF LIGHT AND CLARITY SO 6765 04:21:55,001 --> 04:21:58,000 THE AVERAGE CITIZEN OF THIS 6766 04:21:58,001 --> 04:21:59,000 COUNTRY COULD ACTUALLY SEE -- 6767 04:21:59,001 --> 04:22:00,000 NOT JUST READ BUT SEE SOMETHING 6768 04:22:00,001 --> 04:22:02,000 OWE CUMPLEGHT AND DURING THOSE 6769 04:22:02,001 --> 04:22:04,000 TWO DAYS WHEN THE EXPOSURE OF 6770 04:22:04,001 --> 04:22:06,000 WHAT HAD OCCURRED WAS SO VIVID 6771 04:22:06,001 --> 04:22:07,000 AND SO CLEAR AND THEN FRANKLY IT 6772 04:22:07,001 --> 04:22:10,000 WAS A MATTER OF DAYS AFTER THAT 6773 04:22:10,001 --> 04:22:11,000 WE WERE ON THE FLOOR CONSIDERING 6774 04:22:11,001 --> 04:22:14,000 THE LEGISLATION. 6775 04:22:14,001 --> 04:22:15,000 AS I 6776 04:22:15,001 --> 04:22:17,000 PEOPLE THAT THAT WAS A HIGHLY 6777 04:22:17,001 --> 04:22:19,000 ORGANIZED SET OF EVENTS. 6778 04:22:19,001 --> 04:22:20,000 IT WAS PURELY COINCIDENTAL THE 6779 04:22:20,001 --> 04:22:21,000 WAY IT OCCURRED. 6780 04:22:21,001 --> 04:22:24,000 AND AGAIN THOSE HEARINGS THAT 6781 04:22:24,001 --> 04:22:25,000 OCCURRED PUBLICLY INVOLVED WEEKS 6782 04:22:25,001 --> 04:22:28,000 ANDONTHS OF PREPARATION BEFORE 6783 04:22:28,001 --> 04:22:29,000 THEY WERE ACTUALLY CONDUCTED. 6784 04:22:29,001 --> 04:22:31,000 SO TO MY FRIEND FROM MICHIGAN, I 6785 04:22:31,001 --> 04:22:34,000 THANK YOU FOR YOUR WORK AND YOUR 6786 04:22:34,001 --> 04:22:35,000 CONTRIBUTION TOHIS BILL, NOT 6787 04:22:35,001 --> 04:22:36,000 JUST THE HEARINGS. 6788 04:22:36,001 --> 04:22:37,000 BUT THEN WORKING TO INCLUDE THE 6789 04:22:37,001 --> 04:22:38,000 PROVISIONS THAT ARE PART OF THIS 6790 04:22:38,001 --> 04:22:40,000 LEGISLATION. 6791 04:22:40,001 --> 04:22:42,000 YOU HAVE MADE IT, AGAIN, A VERY 6792 04:22:42,001 --> 04:22:43,000 VALUABLE CONTRIBUTION AND 6793 04:22:43,001 --> 04:22:45,000 HIGHLIGHT ADD VERY IMPORTANT 6794 04:22:45,001 --> 04:22:48,000 POINT AND IT WAS FASCINATING TO 6795 04:22:48,001 --> 04:22:49,000 ME, BY THE WAY, IN JUST THE 6796 04:22:49,001 --> 04:22:51,000 NUMBER OF FORMER CHIEF EXECUTIVE 6797 04:22:51,001 --> 04:22:53,000 OFFICERS FROM MAJOR FINANCIAL 6798 04:22:53,001 --> 04:22:55,000 FIRMS IN THE COUNTRY WHO 6799 04:22:55,001 --> 04:22:57,000 STRONGLY ENDORSED WHAT YOU WERE DOING. 6800 04:22:57,001 --> 04:23:00,000 THIS WAS NOT MERELY A SUGGESTION 6801 04:23:00,001 --> 04:23:03,000 COMING FROM CONSUMER GROUPS OR 6802 04:23:03,001 --> 04:23:05,000 LABOR ORGANIZATIONS OR OTHERS 6803 04:23:05,001 --> 04:23:07,000 THAT ONE MIGHT ASSOCIATE WITH YOUR IDEA. 6804 04:23:07,001 --> 04:23:08,000 BUT PPLE WHO LITERALLY HAD 6805 04:23:08,001 --> 04:23:10,000 SPENT THEIR CAREERS IN THE 6806 04:23:10,001 --> 04:23:11,000 FINANCIAL SERVICES SECTOR WERE 6807 04:23:11,001 --> 04:23:12,000 STRONGLY IS RECOMMENDING THE 6808 04:23:12,001 --> 04:23:13,000 CONTRIBUTIONS YOU MADE TO THE 6809 04:23:13,001 --> 04:23:17,000 BILL. 6810 04:23:17,001 --> 04:23:19,000 I DON'T THINK THA SAI THAT WAS SAI 6811 04:23:19,001 --> 04:23:20,000 OFTEN ENOUGH, THE SIGNIFICANT 6812 04:23:20,001 --> 04:23:22,000 CONTRIBUTION OF THOSE WHO 6813 04:23:22,001 --> 04:23:23,000 UNDERSTAND, WHO WORKED, HAD 6814 04:23:23,001 --> 04:23:31,000 EARNED LIVELIHOODS IN THIS 6815 04:23:31,001 --> 04:23:33,000 DESCRIRKS WHO DUSTRY, WHO HAD WATCHED AN 6816 04:23:33,001 --> 04:23:35,000 SO I THANK MY FRIEND FROM MICHIGAN. 6817 04:23:35,001 --> 04:23:37,000 MR. LEVIN: I THANK MY REALLY 6818 04:23:37,001 --> 04:23:40,000 DEAR FRIEND FROM CONNECTICUT. 6819 04:23:40,001 --> 04:23:41,000 HE'S MADE SUCH AN EXTRAORDINARY 6820 04:23:41,001 --> 04:23:42,000 CONTRIBUTION NOT JUST TO THIS 6821 04:23:42,001 --> 04:23:43,000 BILL BUT TO THE SENATE OVER THE 6822 04:23:43,001 --> 04:23:47,000 YEARS. 6823 04:23:47,001 --> 04:23:49,000 I CAN'T SAY ENOUGH ABOUT HIM. 6824 04:23:49,001 --> 04:23:53,000 HIS EXTRAORDINARY INTEGRITY AND 6825 04:23:53,001 --> 04:23:57,000 PAGES BRINGS TO THESE SUBJECTS. 6826 04:23:57,001 --> 04:24:01,000 SENATOR MERKLEY ON, IS IN THE 6827 04:24:01,001 --> 04:24:04,000 LEAD THERE AND WAS ABSOLUTELY A 6828 04:24:04,001 --> 04:24:06,000 GREAT PARTNER LEADING ON THAT. 6829 04:24:06,001 --> 04:24:07,000 BUT I JUST WANT TO ESPECIALLY 6830 04:24:07,001 --> 04:24:10,000 THANK THE SENATOR FROM 6831 04:24:10,001 --> 04:24:12,000 CONNECTICUT FOR HIS PASSION AND 6832 04:24:12,001 --> 04:24:13,000 FOR HIS -- AND I WAS VERY 6833 04:24:13,001 --> 04:24:16,000 SERIOUS ABOUT THE RESPECT WITH 6834 04:24:16,001 --> 04:24:18,000 WHICH YOU ARE MEDDLE THIS BODY. 6835 04:24:18,001 --> 04:24:20,000 -- WITH WHICH YOU ARE HELD IN 6836 04:24:20,001 --> 04:24:21,000 THIS BODY. 6837 04:24:21,001 --> 04:24:23,000 AND WITHOUT THAT FEELING, THE 6838 04:24:23,001 --> 04:24:27,000 CAUSE THAT YOU ESPOUSE 6839 04:24:27,001 --> 04:24:29,000 BE WHERE 6840 04:24:29,001 --> 04:24:30,000 MR. 6841 04:24:30,001 --> 04:24:34,000 UP TS 6842 04:24:34,001 --> 04:24:35,000 HE 6843 04:24:35,001 --> 04:24:36,000 COLLEAGUE FROM DELAWARE HERE NOW 6844 04:24:36,001 --> 04:24:38,000 ARRIVING ON THE FLOOR. 6845 04:24:38,001 --> 04:24:44,000 I THOUGHT MAYBE WE WERE -- HE'S 6846 04:24:44,001 --> 04:24:47,000 MAKING HIS WAY TO HIS PERCH. 6847 04:24:47,001 --> 04:24:48,000 ARE YOU GOING TO -- YOU LEAVING 6848 04:24:48,001 --> 04:24:50,000 THE FLOOR. 6849 04:24:50,001 --> 04:24:52,000 ALL RIGHT. 6850 04:24:52,001 --> 04:24:53,000 THAT'S A LONG WAY TO GET OUT THE 6851 04:24:53,001 --> 04:24:55,000 DOOR HERE. 6852 04:24:55,001 --> 04:24:56,000 WELL, LET ME -- LET ME -- A 6853 04:24:56,001 --> 04:24:59,000 COUPLE OF THINGS, MR. PRESIDENT. 6854 04:24:59,001 --> 04:25:00,000 FIRST OF ALL, I YESTERDAY 6855 04:25:00,001 --> 04:25:03,000 INCLUDED THE NAMES OF THE SENATE 6856 04:25:03,001 --> 04:25:06,000 BANKING COMMITTEE STAFF, WHO 6857 04:25:06,001 --> 04:25:08,000 MADE SUCH A DIFFERENCE IN THIS BILL. 6858 04:25:08,001 --> 04:25:10,000 AND I'LL NOT GOING TO GO BACK 6859 04:25:10,001 --> 04:25:13,000 OVER ALL THEIR NAMES. 6860 04:25:13,001 --> 04:25:14,000 THEY'RE ARRAYED HERE. 6861 04:25:14,001 --> 04:25:15,000 A COUPLE SIGNATURE NEXT TO ME ON 6862 04:25:15,001 --> 04:25:21,000 THE FLOOR. 6863 04:25:21,001 --> 04:25:23,000 A COU IN THE BACK. 6864 04:25:23,001 --> 04:25:25,000 ONE ARRIVED HERE WITH ME AND 6865 04:25:25,001 --> 04:25:28,000 THEN LEFT THE SENATE SERVICE AND 6866 04:25:28,001 --> 04:25:29,000 WEFNTS OFF AND DID THINGS IN HIS 6867 04:25:29,001 --> 04:25:35,000 LIFE AND AT MY REQUEST TO COME 6868 04:25:35,001 --> 04:25:40,000 BE PART OF THIS EFFORT. 6869 04:25:40,001 --> 04:25:41,000 SO I THANK 6870 04:25:41,001 --> 04:25:43,000 IF I START DOWN THE LIST, I'M 6871 04:25:43,001 --> 04:25:44,000 GOING TO MISS SOMEONE HERE. 6872 04:25:44,001 --> 04:25:45,000 BUT I THANK ALL OF THE MEMBERS 6873 04:25:45,001 --> 04:25:47,000 FOR THEIR TREMENDOUS WORK THAT 6874 04:25:47,001 --> 04:25:50,000 THEY'VE CONTRIBUTED TO THIS. 6875 04:25:50,001 --> 04:25:52,000 AND TO HARRY REID, THE MAJORITY LEADER. 6876 04:25:52,001 --> 04:25:54,000 AGAIN, I KNOW I'VE TALKED ABOUT 6877 04:25:54,001 --> 04:25:55,000 HIM ON A COUPLE OF OCCASIONS. 6878 04:25:55,001 --> 04:25:57,000 BUT IF YOU D'T HAVE SOMEONE TO 6879 04:25:57,001 --> 04:25:58,000 HELP BRING THIS ALL TOGETHER, IT 6880 04:25:58,001 --> 04:26:00,000 DOESN'T HAPPEN. 6881 04:26:00,001 --> 04:26:02,000 AND IN FACT I SEE MY COLLEAGUE 6882 04:26:02,001 --> 04:26:04,000 FROM THE STATE OF WASHINGTON. 6883 04:26:04,001 --> 04:26:05,000 I'M FILLING IN TIME FOR THE NEXT 6884 04:26:05,001 --> 04:26:07,000 TWO MINUTES. 6885 04:26:07,001 --> 04:26:08,000 I WANT TO SAY THANK YOU TO HER. 6886 04:26:08,001 --> 04:26:10,000 JUST ADVOCATE WITH GREAT 6887 04:26:10,001 --> 04:26:11,000 PASSION ON THESE ISSUES, BROUGHT 6888 04:26:11,001 --> 04:26:13,000 A GREAT DEAL OF KNOWLEDGE, 6889 04:26:13,001 --> 04:26:16,000 SOMEONE WHO SPENT A CAREER 6890 04:26:16,001 --> 04:26:18,000 HERSELF IN THE AREA OF FINANCIAL 6891 04:26:18,001 --> 04:26:20,000 SERVICES, AND UNDERSTANDS THIS 6892 04:26:20,001 --> 04:26:22,000 BEYOND JUST THE INTELLECTUAL AND 6893 04:26:22,001 --> 04:26:24,000 THEORETICAL STANDPOINT, BUT 6894 04:26:24,001 --> 04:26:26,000 LIVED IT, SAW THE SUCCESSES OF 6895 04:26:26,001 --> 04:26:28,000 IT AND THE FAILURES OF IT. 6896 04:26:28,001 --> 04:26:29,000 AND SO BRINGS A GREAT WEALTH OF 6897 04:26:29,001 --> 04:26:30,000 INFORMATION AND ABILITY. 6898 04:26:30,001 --> 04:26:31,000 SO I YIELD TO 6899 04:26:31,001 --> 04:26:32,000 MS. CANTWELL: I THANK MY 6900 04:26:32,001 --> 04:26:33,000 COLLEAGUE -- 6901 04:26:33,001 --> 04:26:34,000 THE PRESIDING OFFICER: THE 6902 04:26:34,001 --> 04:26:35,000 SENATOR FROM WASHINGTON STATE. 6903 04:26:35,001 --> 04:26:36,000 MS. CANTWELL: I THANK THE 6904 04:26:36,001 --> 04:26:40,000 CHAIR FOR YIELDING TIME. 6905 04:26:40,001 --> 04:26:41,000 I WANT TO THANK THE CHAIR FOR 6906 04:26:41,001 --> 04:26:42,000 HIS DILL JENLS IN THE 6907 04:26:42,001 --> 04:26:43,000 DERIVATIVES MARKET. 6908 04:26:43,001 --> 04:26:45,000 THIS LEGISLATION WILL BE THE 6909 04:26:45,001 --> 04:26:47,000 FIRST TIME -- THE FIRST TIME -- 6910 04:26:47,001 --> 04:26:48,000 THE OVER-THE-COUNTER DERIVATIVE 6911 04:26:48,001 --> 04:26:49,000 MARKET IN THIS COUNTRY WILL BE 6912 04:26:49,001 --> 04:26:51,000 REGULATED. 6913 04:26:51,001 --> 04:26:53,000 THE FACT THAT CONGRESS MADE A 6914 04:26:53,001 --> 04:26:57,000 MISTAKE AND SAID, HANDS OFF TO 6915 04:26:57,001 --> 04:26:59,000 DERIVATIVES IN 2000 AND THEN A 6916 04:26:59,001 --> 04:27:03,000 $200 MILLION MARKET IMPLODED TO 6917 04:27:03,001 --> 04:27:05,000 A $600 TRILLION DARK MARKET -- 6918 04:27:05,001 --> 04:27:07,000 THE CHAIRMAN HAS NOW MADE SURE 6919 04:27:07,001 --> 04:27:08,000 THAT FOR THE FIRST TIME 6920 04:27:08,001 --> 04:27:09,000 OVER-THE-COUNTER DERIVATIVES 6921 04:27:09,001 --> 04:27:12,000 WILL BE REGULATED. 6922 04:27:12,001 --> 04:27:14,000 THAT MEANS FOR THE FIRST TIME OVER-THE-COUNTER DERIVATIVES 6923 04:27:14,001 --> 04:27:16,000 WILL HAVE TO BE EXCHANGE TRADED, 6924 04:27:16,001 --> 04:27:18,000 WHICMEANS THERE WILL BE TRANSPARENCY. 6925 04:27:18,001 --> 04:27:19,000 IT'S THE FIRST TIME 6926 04:27:19,001 --> 04:27:21,000 OVER-THE-COUNTER DERIVATIVES 6927 04:27:21,001 --> 04:27:23,000 WILL HAVE TO BE CLEARED, WHICH 6928 04:27:23,001 --> 04:27:24,000 MEANS A THIRD PARTY WILL HAVE TO 6929 04:27:24,001 --> 04:27:26,000 VALIDATE WHETHER THERE IS REAL 6930 04:27:26,001 --> 04:27:29,000 MONEY BEHIND THESE TRANSACTIONS. 6931 04:27:29,001 --> 04:27:31,000 AND IT IS THE FIRST TIME THE 6932 04:27:31,001 --> 04:27:32,000 CFTC WILL BE ALLOWED TO SAY THAT 6933 04:27:32,001 --> 04:27:35,000 THEY CAN HAVE -- THAT THEY WILL 6934 04:27:35,001 --> 04:27:36,000 BE ABLE TO ENFORCE AGGREGATE 6935 04:27:36,001 --> 04:27:38,000 POSITION LIMITS ACROSS ALL 6936 04:27:38,001 --> 04:27:41,000 EXCHANGES, WHICH MEANS YOU CAN'T 6937 04:27:41,001 --> 04:27:43,000 HIDE THIS DARK MART DERIVATIVE 6938 04:27:43,001 --> 04:27:45,000 MONEY ON SOME EXCHANGE THAT 6939 04:27:45,001 --> 04:27:48,000 ISN'T PROPERLY REGULATED OR TRY 6940 04:27:48,001 --> 04:27:50,000 TO MAKE THE MARKET ACROSSLL EXCHANGES. 6941 04:27:50,001 --> 04:27:52,000 AND IT IS THE FIRST TIME THAT 6942 04:27:52,001 --> 04:27:54,000 THINGS LIKE THE LONDON LOOPHOLE 6943 04:27:54,001 --> 04:27:56,000 WILL BE CLOSED SO THAT YOU CAN'T 6944 04:27:56,001 --> 04:27:57,000 HAVE MARKETS AND EXCHANGES THAT 6945 04:27:57,001 --> 04:27:59,000 AREN'T REGULATED. 6946 04:27:59,001 --> 04:28:02,000 SO TO THE AMERICAN PEOPLE TO 6947 04:28:02,001 --> 04:28:04,000 KNOW THAT SOMETHING AS ONEROUS 6948 04:28:04,001 --> 04:28:06,000 AS CREDIT DEFAULT SWAPS BROUGHT 6949 04:28:06,001 --> 04:28:08,000 DOWN OUR ECONOMY THAT NOW FOR 6950 04:28:08,001 --> 04:28:09,000 THE FIRST TIME WE WILL HAVE 6951 04:28:09,001 --> 04:28:11,000 REGULATION OF THESE 6952 04:28:11,001 --> 04:28:12,000 OVER-THE-COUNT DERIVATIVES, I 6953 04:28:12,001 --> 04:28:16,000 THANK THE CHAIRMAN FOR HIS 6954 04:28:16,001 --> 04:28:18,000 EFFORTS IN THAT EAMPLET $600 6955 04:28:18,001 --> 04:28:21,000 TRILLION MARKET SOMETHING LIKE 6956 04:28:21,001 --> 04:28:22,000 12 TIMES G.D.P. IS A DANGER TO 6957 04:28:22,001 --> 04:28:24,000 OUR ECONOMY IF IT IS NOT 6958 04:28:24,001 --> 04:28:26,000 REGULATED. 6959 04:28:26,001 --> 04:28:27,000 THANK GOD WE'RE GOING TO BE 6960 04:28:27,001 --> 04:28:29,000 REGULATING IT FOR THE FIRST TIME. 6961 04:28:29,001 --> 04:28:30,000 AND I WOULD ENCOURAGE ALL MY 6962 04:28:30,001 --> 04:28:31,000 COLLEAGUES ON THE OTHER SIDE OF 6963 04:28:31,001 --> 04:28:33,000 THE AISLE, WHO AT ONE POINT IN 6964 04:28:33,001 --> 04:28:34,000 TIME SAID THESE ARE TOO 6965 04:28:34,001 --> 04:28:36,000 COMPLICATED TO UNDERSTAND, 6966 04:28:36,001 --> 04:28:37,000 UNDERSTAND THEY BROUGHT DOWN OUR 6967 04:28:37,001 --> 04:28:39,000 ECONOMY AND UNDERSTAND THAT 6968 04:28:39,001 --> 04:28:41,000 WE'RE GOING TO FOR THE FIRST 6969 04:28:41,001 --> 04:28:42,000 TIME REGULATE OVER-THE-COUNTER DERIVATIVES. 6970 04:28:42,001 --> 04:28:43,000 I THANK THE CHAIR FOR HIS 6971 04:28:43,001 --> 04:28:45,000 LEADERSHIP. 6972 04:28:45,001 --> 04:28:46,000 MR. DODD: I THANK THE SENATOR 6973 04:28:46,001 --> 04:28:48,000 FROM WASHINGTON FOR HER CONTRIBUTION. 6974 04:28:48,001 --> 04:28:49,000 WE'VE ARRIVED AT THAT MOMENT. 6975 04:28:49,001 --> 04:28:50,000 AS I UNDERSTAND IT, LET ME MAKE 6976 04:28:50,001 --> 04:28:51,000 A PARLIAMENTARY INQUIRY INQUIRY. 6977 04:28:51,001 --> 04:28:52,000 THERE ARE TWO VOTES, AS I 6978 04:28:52,001 --> 04:28:54,000 UNDERSTAND IT. 6979 04:28:54,001 --> 04:28:55,000 ONE IS ON THE WAIVER OF THE 6980 04:28:55,001 --> 04:28:56,000 BUDGET POINT OF ORDER. 6981 04:28:56,001 --> 04:28:58,000 AND THE SECOND VOTE WILL OCCUR 6982 04:28:58,001 --> 04:28:59,000 ON THE FINAL PASSAGE OF THE 6983 04:28:59,001 --> 04:29:00,000 CO 6984 04:29:00,001 --> 04:29:01,000 IS THAT CORRECT? 6985 04:29:01,001 --> 04:29:02,000 THE PRESIDING OFFICER: THE 6986 04:29:02,001 --> 04:29:03,000 SENATOR IS CORRECT. 6987 04:29:03,001 --> 04:29:05,000 MR. DODD: HAVE THE YEAS AND 6988 04:29:05,001 --> 04:29:07,000 YS BEEN ORDERED ON THE WAIVER 6989 04:29:07,001 --> 04:29:08,000 OF THE POINT OF ORDER? THE PRESIDING OFFICER: THEY 6990 04:29:08,001 --> 04:29:09,000 HAVE. 6991 04:29:09,001 --> 04:29:11,000 MR. DODD: AND ARE THE YEAS AND 6992 04:29:11,001 --> 04:29:13,000 NAYS ORDERED ON THE FINAL 6993 04:29:13,001 --> 04:29:14,000 PASSAGE OF THE BILL? 6994 04:29:14,001 --> 04:29:15,000 THE PRESIDING OFFICER: THEY 6995 04:29:15,001 --> 04:29:16,000 HAVE NOT. 6996 04:29:16,001 --> 04:29:18,000 MR. DODD: I'D ASK THE YEAS AND 6997 04:29:18,001 --> 04:29:19,000 NAYS ON THE NINAL PASSAGE OF THE 6998 04:29:19,001 --> 04:29:20,000 CONFERENCE REPORT. THE PRESIDING OFFICER: IS 6999 04:29:20,001 --> 04:29:22,000 THERE A SUFFICIENT SECOND? 7000 04:29:22,001 --> 04:29:23,000 THERE APPEARS TO BE. 7001 04:29:23,001 --> 04:29:24,000 THERE IS. 7002 04:29:24,001 --> 04:29:25,000 SO ORDERED. 7003 04:29:25,001 --> 04:29:27,000 MR. DODD: JUST IN CONCLUSION 7004 04:29:27,001 --> 04:29:28,000 HERE, AGAIN, MY THANKS -- I WANT 7005 04:29:28,001 --> 04:29:29,000 TO THA THE FLOOR STAFF AS WELL 7006 04:29:29,001 --> 04:29:30,000 RNNGS BOTH THE MINORITY AND 7007 04:29:30,001 --> 04:29:32,000 THE MAJORITY SIDE. 7008 04:29:32,001 --> 04:29:34,000 WE'VE SPENT A LOST TIME HERE 7009 04:29:34,001 --> 04:29:35,000 TOGETHER OVER THE LAST Y 7010 04:29:35,001 --> 04:29:36,000 I'M DEEPLY GRATEFUL TO THEM FOR 7011 04:29:36,001 --> 04:29:39,000 THE ORDERLY WAY IN WHICH THEY 7012 04:29:39,001 --> 04:29:40,000 CONDUCTED BUSINESS AND HOW FAIR 7013 04:29:40,001 --> 04:29:42,000 AND DISCIPLINED THEY ARE ABOUT 7014 04:29:42,001 --> 04:29:43,000 MAKING SURE THE FLOOR OF THE 7015 04:29:43,001 --> 04:29:45,000 SENATE RUNS SO WELL. 7016 04:29:45,001 --> 04:29:46,000 I THANK HIM IMMANSLY FOR THEIR 7017 04:29:46,001 --> 04:29:47,000 WORK. 7018 04:29:47,001 --> 04:29:50,000 AND I URGE MY COLLEAGUES TO 7019 04:29:50,001 --> 04:29:51,000 WAIVE THE POINT OF ORDER AND TO 7020 04:29:51,001 --> 04:29:53,000 SUPPORT THIS HISTORIC LANDMARK 7021 04:29:53,001 --> 04:29:55,000 PIECE OF LEGISLATION THAT WE 7022 04:29:55,001 --> 04:29:57,000 HOPE WILL SET OUR COUNTRY ON A 7023 04:29:57,001 --> 04:29:58,000 COURSE OF FINANCIAL STABILITY 7024 04:29:58,001 --> 04:29:59,000 AND SUCCESS IN THE GENERATIONS 7025 04:29:59,001 --> 04:30:02,000 TO COME. 7026 04:30:02,001 --> 04:30:03,000 I YIELD THE FLOOR. 7027 04:30:03,001 --> 04:30:04,000 THE PRESIDING OFFICER: THE 7028 04:30:04,001 --> 04:30:05,000 QUESTION IS ON THE MOTION TO 7029 04:30:05,001 --> 04:30:07,000 WAIVE. 7030 04:30:07,001 --> 04:30:11,000 THE YEAS AND NAYS HAVE BEEN ORDERED. 7031 04:30:11,001 --> 04:44:53,000 TH 7032 04:44:53,001 --> 04:53:32,000 VOTE: 7033 04:53:32,001 --> 04:53:33,000 VOTE: 7034 04:53:33,001 --> 04:53:34,000 THE PRESIDING OFFICER: ARE THERE 7035 04:53:34,001 --> 04:53:37,000 ANY SENATORS IN THE CHAMBER 7036 04:53:37,001 --> 04:56:43,000 WISHING TO VOTER TO CHANGE THEIR VOTE? 7037 04:56:43,001 --> 04:56:45,000 IF NOT, -- 7038 04:56:45,001 --> 04:56:46,000 THE PRESIDING OFFICER: ARE ANY 7039 04:56:46,001 --> 04:56:47,000 SENATORS WISHING TO VOTE OR TO 7040 04:56:47,001 --> 04:56:50,000 CHANGE THEIR VOTES? 7041 04:56:50,001 --> 04:56:54,000 IF NOT, ON THIS VOTE THE YEAS 7042 04:56:54,001 --> 04:56:57,000 ARE 60, THE NAYS ARE 39. 7043 04:56:57,001 --> 04:56:59,000 THREE-FIFTHS OF THE SENATORS 7044 04:56:59,001 --> 04:57:01,000 DULY 7045 04:57:01,001 --> 04:57:02,000 VOTED IN THE AFFIRMATIVE, THE 7046 04:57:02,001 --> 04:57:05,000 MOTION IS AGREED TO. 7047 04:57:05,001 --> 04:57:09,000 MR. REID: MR. PRESIDENT? THE PRESIDING OFFICER: THE 7048 04:57:09,001 --> 04:57:11,000 MAJORITY LEADER'S RECOGNIZED. 7049 04:57:11,001 --> 04:57:13,000 MR. REID: MR. PRESIDENT, I'VE 7050 04:57:13,001 --> 04:57:15,000 BEEN CONFERRING OFF AND ON 7051 04:57:15,001 --> 04:57:18,000 THROUGHOUT THE DAY WITH THE REPUBLICAN LEADER. 7052 04:57:18,001 --> 04:57:19,000 THERE WILL BE NO MORE VOTES 7053 04:57:19,001 --> 04:57:36,000 TODAY. 7054 04:57:36,001 --> 04:57:39,000 WE HAVE A FINAL PASSAGE. 7055 04:57:39,001 --> 04:57:41,000 I'M NOT USED TO THESE SIMPLE 7056 04:57:41,001 --> 04:57:44,000 MAJORITY VOTES. 7057 04:57:44,001 --> 04:57:46,000 WE'LL FINISH -- AND THAT WILL BE 7058 04:57:46,001 --> 04:57:47,000 THE LAST VOTE TODAY. 7059 04:57:47,001 --> 04:57:50,000 WE'RE GOING TO SWEAR IN THE NEW 7060 04:57:50,001 --> 04:57:52,000 SENATOR FROM WEST VIRGINIA AT 7061 04:57:52,001 --> 04:57:54,000 2:15 ON TUESDAY. 7062 04:57:54,001 --> 04:57:57,000 AND IMMEDIATELY AFTER THAT, AS 7063 04:57:57,001 --> 04:57:58,000 SOON AS THAT'S OVER AT 2:30 7064 04:57:58,001 --> 04:57:59,000 WE'LL HAVE A VOTE ON EXTENDING 7065 04:57:59,001 --> 04:58:01,000 UNEMPLOYMENT BENEFITS. 7066 04:58:01,001 --> 04:58:02,000 AND THE REPUBLICAN LEADER AND I 7067 04:58:02,001 --> 04:58:04,000 ARE WORKING ON A WAY TO MOVE 7068 04:58:04,001 --> 04:58:06,000 FORWARD ON SMALL BUSINESS. 7069 04:58:06,001 --> 04:58:07,000 I THINK WE HAVE A PRETTY GOOD 7070 04:58:07,001 --> 04:58:08,000 PATH OF WHAT WE'RE GOING TO DO 7071 04:58:08,001 --> 04:58:12,000 ON THAT. 7072 04:58:12,001 --> 04:58:14,000 AFTER WE FINISH THAT, IT'S MY 7073 04:58:14,001 --> 04:58:17,000 INTENTION TO MOVE TO THE 7074 04:58:17,001 --> 04:58:18,000 SUPPLEMENTAL APPROPRIATION BILL. 7075 04:58:18,001 --> 04:58:20,000 IT APPEARS WE'RE GOING TO HAVE A 7076 04:58:20,001 --> 04:58:21,000 CLOTURE VOTE ON THAT. 7077 04:58:21,001 --> 04:58:24,000 BUT I THINK WE CAN WORK OUT THE 7078 04:58:24,001 --> 04:58:25,000 TIME ON THAT SO IT DOESN'T TAK 7079 04:58:25,001 --> 04:58:27,000 AN INORDINATE AMOUNT OF TIME. 7080 04:58:27,001 --> 04:58:29,000 I CONFERRED WITH THE REPUBLICAN 7081 04:58:29,001 --> 04:58:30,000 LEADER AT THE BEGINNING OF THIS 7082 04:58:30,001 --> 04:58:31,000 WORK PERIOD ON MONDAY. 7083 04:58:31,001 --> 04:58:33,000 WE HAVE A LIST OF THINGS THAT WE 7084 04:58:33,001 --> 04:58:34,000 NEED TO ACCOMPLISH BEFORE WE 7085 04:58:34,001 --> 04:58:35,000 LEAVE HERE. 7086 04:58:35,001 --> 04:58:37,000 AS EVERYONE KNOWS HERE, WE'RE 7087 04:58:37,001 --> 04:58:39,000 GOING TO BE HERE FOUR OR FIVE WEEKS. 7088 04:58:39,001 --> 04:58:41,000 THE TWO LEADERS, DEMOCRAT AND 7089 04:58:41,001 --> 04:58:42,000 REPUBLICAN, WERE BETTING ON FOUR 7090 04:58:42,001 --> 04:58:44,000 WEEKS RATHER THAN FIVE WEEKS, 7091 04:58:44,001 --> 04:58:47,000 BUT WE'LL NEED A LITTLE 7092 04:58:47,001 --> 04:58:53,000 COOPERATION TO GET THAT DONE. 7093 04:58:53,001 --> 04:58:54,000 ANYTHING? 7094 04:58:54,001 --> 04:58:55,000 THE PRESIDING OFFICER: THE 7095 04:58:55,001 --> 04:58:57,000 QUESTION IS ON THE ADOPTION OF 7096 04:58:57,001 --> 04:58:59,000 THE CONFERENCE REPORT. 7097 04:58:59,001 --> 04:59:04,000 THE YEAS AND NAYS HAVING ORDERED. 7098 04:59:04,001 --> 04:59:18,000 THE CLERK WILL CALL THE ROLL. 7099 04:59:18,001 --> 05:16:02,000 VOTE: 7100 05:16:02,001 --> 05:26:05,000 VOTE: 7101 05:26:05,001 --> 05:26:06,000 VOTE: 7102 05:26:06,001 --> 05:26:07,000 THE PRESIDING OFFICER: ANY 7103 05:26:07,001 --> 05:26:08,000 SENATORS WISHING TO VOTE OR TO 7104 05:26:08,001 --> 05:26:12,000 CHANGE THEIR VOTE? 7105 05:26:12,001 --> 05:26:15,000 IF NOT, THE YEAS ARE 60, THE 7106 05:26:15,001 --> 05:26:17,000 NAYS ARE 39. 7107 05:26:17,001 --> 05:26:19,000 THE CONFERENCE REPORT IS AGREED TO. 7108 05:26:19,001 --> 05:26:20,000 MR 7109 05:26:20,001 --> 05:26:21,000 LAY THAT ON THE TABLE, 7110 05:26:21,001 --> 05:26:22,000 MR. PRESIDENT. 7111 05:26:22,001 --> 05:26:23,000 THE PRESIDING OFFICER: WITHOUT 7112 05:26:23,001 --> 05:26:24,000 OBJECTION, SO ORDERED MR. DODD: 7113 05:26:24,001 --> 05:26:26,000 MR. PRESIDENT, I NOTE THE 7114 05:26:26,001 --> 05:26:28,000 ABSENCE OF A QUORUM. 7115 05:26:28,001 --> 05:26:29,000 EXCUSE ME, I RESERVE THAT. 7116 05:26:29,001 --> 05:26:31,000 THE PRESIDING OFFICER: THE 7117 05:26:31,001 --> 05:26:32,000 SENATOR FROM PENNSYLVANIA IS 7118 05:26:32,001 --> 05:26:33,000 RECOGNIZED. 7119 05:26:33,001 --> 05:26:38,000 THE SENATOR FROM PENNSYLVANIA IS 7120 05:26:38,001 --> 05:26:40,000 RECOGNIZED FOR 30 MINUTES. 7121 05:26:40,001 --> 05:26:43,000 MR. SPECTER: I THANK THE CHAIR. 7122 05:26:43,001 --> 05:26:44,000 MR. PRESIDENT, I 7123 05:26:44,001 --> 05:26:48,000 THE PRESIDING OFFICER: ORDER IN 7124 05:26:48,001 --> 05:27:15,000 THE SENATE, PLEASE. 7125 05:27:15,001 --> 05:27:16,000 ORDER IN THE SENATE. THE PRESIDING OFFICER: ORDER IN 7126 05:27:16,001 --> 05:27:18,000 THE SENATE, PLEASE. 7127 05:27:18,001 --> 05:27:20,000 WILL THE STAFF TAKE THEIR 7128 05:27:20,001 --> 05:27:22,000 CONVERSATIONS OUT OF THE SENATE. 7129 05:27:22,001 --> 05:27:24,000 THANK YOU. 7130 05:27:24,001 --> 05:27:25,000 THE SENATOR FROM PEN 7131 05:27:25,001 --> 05:27:28,000 RECOGNIZED. 7132 05:27:28,001 --> 05:27:29,000 MR. SPECTER: I THANK THE CHAIR. 7133 05:27:29,001 --> 05:27:34,000 MR. PRESIDENT, I HAVE SOUGHT 7134 05:27:34,001 --> 05:27:37,000 RECOGNITION TO STATEY POSITION 7135 05:27:37,001 --> 05:27:39,000 ON THE NOMINATION OF SOLICITOR 7136 05:27:39,001 --> 05:27:41,000 GENERAL ELENA KAGANO BE 7137 05:27:41,001 --> 05:27:46,000 ASSOCIATE JUSTICE OF THE SUPREME 7138 05:27:46,001 --> 05:27:49,000 COURT OF THE UNITED STATES AND 7139 05:27:49,001 --> 05:27:52,000 TO COMMENT ABOUT THE APPROPRIATE 7140 05:27:52,001 --> 05:27:53,000 ROLE OF THE SENATE, WHAT IS 7141 05:27:53,001 --> 05:27:57,000 HAPPING TO THE DOCTRINE OF 7142 05:27:57,001 --> 05:27:59,000 SEPARATION OF POWERS, AND HOW 7143 05:27:59,001 --> 05:28:03,000 INSTITUTIONALLY THE SENATE MIGHT 7144 05:28:03,001 --> 05:28:04,000 ASSERT ITSELF TO STOP THE 7145 05:28:04,001 --> 05:28:08,000 EROSION OF POWERS FROM THIS BODY 7146 05:28:08,001 --> 05:28:10,000 TO THE COURT AND FROM THE 7147 05:28:10,001 --> 05:28:13,000 CONGRESS TO THE EXECUTIVE 7148 05:28:13,001 --> 05:28:17,000 BRANCH. 7149 05:28:17,001 --> 05:28:20,000 I AM SUPPORTING MISS KAGAN 7150 05:28:20,001 --> 05:28:22,000 BECAUSE OF HER INTELLECT, HER 7151 05:28:22,001 --> 05:28:25,000 PROFESSIONAL BACKGROUND, HER 7152 05:28:25,001 --> 05:28:30,000 ACADEMIC BACKGROUND AND BECAUSE 7153 05:28:30,001 --> 05:28:32,000 I THINK SHE WILL BE AN EFFECTIVE 7154 05:28:32,001 --> 05:28:34,000 BALANCE IN THE IDEOLOGICAL 7155 05:28:34,001 --> 05:28:36,000 BATTLE WHICH IS BEING WAGED IN 7156 05:28:36,001 --> 05:28:37,000 THE CONFERENCE ROOM OF THE 7157 05:28:37,001 --> 05:28:40,000 SUPREME COURT. 7158 05:28:40,001 --> 05:28:44,000 THE IDEOLOGICAL BALANCE WHICH IS 7159 05:28:44,001 --> 05:28:46,000 SO SORELY NEEDED AT THE -- AT 7160 05:28:46,001 --> 05:28:49,000 THE PRESENT TIME. 7161 05:28:49,001 --> 05:28:51,000 THE HESITANCY I HAVE HAD AS I 7162 05:28:51,001 --> 05:28:54,000 HAVE EXPRESSED IT IN THE 7163 05:28:54,001 --> 05:28:58,000 HEARINGS HAS BEEN ON THE FAILURE 7164 05:28:58,001 --> 05:29:01,000 OF MISS KAGAN TO RESPOND WITH 7165 05:29:01,001 --> 05:29:05,000 SUBSTANTIVE ANSWERS SO THAT 7166 05:29:05,001 --> 05:29:09,000 SENATORS WOULD HAVE A REALISTIC 7167 05:29:09,001 --> 05:29:12,000 IDEA AS TO WHERE SHE STOOD PHILOSOPHICALLY ON SOME OF THE 7168 05:29:12,001 --> 05:29:16,000 VERY IMPORTANT QUESTIONS OF THE DAY. 7169 05:29:16,001 --> 05:29:20,000 NOT HOW SHE WOULD DECIDE CASES 7170 05:29:20,001 --> 05:29:22,000 BUT WHAT STANDARDS SHE WILL -- 7171 05:29:22,001 --> 05:29:24,000 WOULD APPLY, IF CONFIRMED, AND 7172 05:29:24,001 --> 05:29:27,000 I'LL BE VERY SPECIFIC ABOUT THAT. 7173 05:29:27,001 --> 05:29:28,000 IT HAS BEEN ESPECIALLY 7174 05:29:28,001 --> 05:29:32,000 TROUBLESOME BECAUSE MISS KAGAN 7175 05:29:32,001 --> 05:29:35,000 HAS BEEN OUTSPOKEN IN THE PAST 7176 05:29:35,001 --> 05:29:37,000 ABOUT THE IMPORTANCE OF HAVING 7177 05:29:37,001 --> 05:29:38,000 SUBSTANTIVE ANSWERS IN 7178 05:29:38,001 --> 05:29:43,000 NOMINATION PROCEEDINGS. 7179 05:29:43,001 --> 05:29:46,000 SHE WROTE A NOW-FAMOUS ARTICLE FOR 7180 05:29:46,001 --> 05:29:49,000 THE UNIVERSITY OF CHICAGO LAW 7181 05:29:49,001 --> 05:29:51,000 REVIEW CRITICIZING SUPREME COURT 7182 05:29:51,001 --> 05:29:53,000 PROCEEDINGS ON NOMINATIONS BY 7183 05:29:53,001 --> 05:29:56,000 SAYING THAT THEY WERE VACUOUS 7184 05:29:56,001 --> 05:30:01,000 AND AA FARCE. 7185 05:30:01,001 --> 05:30:05,000 AND BY NAME CRITICIZED JUSTICE 7186 05:30:05,001 --> 05:30:09,000 TH BADER GINSBURG AND JUSTICE 7187 05:30:09,001 --> 05:30:10,000 STEVEN PRY YARR FOR -- BREYER 7188 05:30:10,001 --> 05:30:12,000 FOR NOT ANSWERING QUESTIONS. 7189 05:30:12,001 --> 05:30:13,000 AND IN EFFECT CRITICIZED THE 7190 05:30:13,001 --> 05:30:15,000 SENATE AND SENATORS FOR NOT 7191 05:30:15,001 --> 05:30:18,000 ASKING AND PRESSING QUESTIONSO 7192 05:30:18,001 --> 05:30:21,000 FIND OUT WHERE NOMINEES STOOD. 7193 05:30:21,001 --> 05:30:25,000 THERE WAS A SIMILAR ARTICLE 7194 05:30:25,001 --> 05:30:28,000 WRITTEN BY THEN A YOUNG LAWYER 7195 05:30:28,001 --> 05:30:31,000 IN PHOENIX, ARIZONA, NAMED BILL 7196 05:30:31,001 --> 05:30:32,000 REHNQUIST BACK IN 1958 FOR THE 7197 05:30:32,001 --> 05:30:36,000 HARVARD LAW RECORD. 7198 05:30:36,001 --> 05:30:37,000 WHERE HE CRITICIZED THE 7199 05:30:37,001 --> 05:30:39,000 CONFIRMATION PROCEEDING OF 7200 05:30:39,001 --> 05:30:42,000 SUPREME COURT JUSTICE WHITTAKER 7201 05:30:42,001 --> 05:30:45,000 SAYING THAT THE SENATE DID NOT 7202 05:30:45,001 --> 05:30:48,000 ASK QUESTIONS ABOUT THE 7203 05:30:48,001 --> 05:30:51,000 IMPORTANT, SUBSTANTIVE MATTERS. 7204 05:30:51,001 --> 05:30:53,000 DURING THE CONFIRMATION OF CHIEF 7205 05:30:53,001 --> 05:30:55,000 JUSTICE REHNQUIST, I ASKED HIM A 7206 05:30:55,001 --> 05:30:57,000 SERI OF QUESTIONS WHICH HE 7207 05:30:57,001 --> 05:31:01,000 DECLINED TO ANSWER, CITED HIS 7208 05:31:01,001 --> 05:31:05,000 OWN WORDS, AND THEN HE ANSWERED 7209 05:31:05,001 --> 05:31:06,000 A FEW, REALLY NOT VERY 7210 05:31:06,001 --> 05:31:08,000 IMPORTANT, JUST ABOUT ENOUGH TO 7211 05:31:08,001 --> 05:31:09,000 BE CONFIRMED, WHICH HAS BEEN MY 7212 05:31:09,001 --> 05:31:13,000 CONCLUSION GENERALLY, HAVING 7213 05:31:13,001 --> 05:31:14,000 BEEN A PARTY NOW TO 13 7214 05:31:14,001 --> 05:31:16,000 CONFIRMATION HEARINGS. 7215 05:31:16,001 --> 05:31:19,000 NOMINEES JUST ABOUT AS MANY 7216 05:31:19,001 --> 05:31:21,000 QUESTIONS AS THEY THINK THEY 7217 05:31:21,001 --> 05:31:22,000 HAVE TO. 7218 05:31:22,001 --> 05:31:25,000 WHEN JUSTICE SCALIA CAME UP FOR 7219 05:31:25,001 --> 05:31:28,000 CONFIRMATION IN 1986, HE 7220 05:31:28,001 --> 05:31:32,000 ANSWERED VIRTUALLY NOTHING. 7221 05:31:32,001 --> 05:31:33,000 WHEN THE QUESTION CAME UP ABOUT 7222 05:31:33,001 --> 05:31:35,000 MARBURY v. MADISON, HE SAID, 7223 05:31:35,001 --> 05:31:36,000 WELL, CAN'T ANSWER THAT 7224 05:31:36,001 --> 05:31:37,000 QUESTION. 7225 05:31:37,001 --> 05:31:39,000 MIGHT COME BEFORE THE COURT. 7226 05:31:39,001 --> 05:31:41,000 MAY THE RECORD SHOW THE LOOK OF 7227 05:31:41,001 --> 05:31:42,000 AMAZEMENT ON THE FACE OF THE 7228 05:31:42,001 --> 05:31:44,000 DISTINGUISHED SENATOR FROM 7229 05:31:44,001 --> 05:31:46,000 MINNESOTA, WHO IS PRESIDING. 7230 05:31:46,001 --> 05:31:49,000 I WAS FRANKLY AMAZED BY IT 7231 05:31:49,001 --> 05:31:52,000 MYSELF. 7232 05:31:52,001 --> 05:31:55,000 BUT THE TENOR OF THE TIMES, 7233 05:31:55,001 --> 05:31:58,000 FOLLOWING THE VERY CONTENTIOUS 7234 05:31:58,001 --> 05:32:02,000 NOMINATION PROCEEDING OF CHIEF 7235 05:32:02,001 --> 05:32:04,000 JUSTICE REHNQUIST AND OTHERS, 7236 05:32:04,001 --> 05:32:07,000 JUSTICE SCALIA WAS CONFIRMED 7237 05:32:07,001 --> 05:32:09,000 HANDILY, 98-0. 7238 05:32:09,001 --> 05:32:11,000 I'VE SEEN HIM SOCIALLY AT 7239 05:32:11,001 --> 05:32:12,000 EVENTS, ONE A COUPLE OF WEEKS 7240 05:32:12,001 --> 05:32:13,000 AGO, AND COMMENTED TO A GROUP 7241 05:32:13,001 --> 05:32:16,000 STANDING WITH HIM THAT PRISONERS 7242 05:32:16,001 --> 05:32:18,000 OF WAR GIVE THEIR NAME, RANK, 7243 05:32:18,001 --> 05:32:20,000 AND SERIAL NUMBER, BUT IN THE 7244 05:32:20,001 --> 05:32:21,000 SCALIA NOMINEE NOMINATION 7245 05:32:21,001 --> 05:32:23,000 PROCEEDING, HEOULD ONLY GIVE 7246 05:32:23,001 --> 05:32:25,000 HIS NAME AND RANK, JUST ABOUT 7247 05:32:25,001 --> 05:32:29,000 AMOUNTED TO THAT. 7248 05:32:29,001 --> 05:32:34,000 FOLLOWING THE HEARING ON JUSTICE 7249 05:32:34,001 --> 05:32:37,000 SCALIA, SENATOR DECONCINI AND I 7250 05:32:37,001 --> 05:32:40,000 WERE FORMULATING A RESOLUTION 7251 05:32:40,001 --> 05:32:43,000 WHICH WOULD ESTABLISH STANDARDS 7252 05:32:43,001 --> 05:32:46,000 THAT SENATORS WOULD INSIST ON OR 7253 05:32:46,001 --> 05:32:48,000 COULD INSIST ON FOR SOME 7254 05:32:48,001 --> 05:32:49,000 GUIDANCE TO TRY TO GET MORE 7255 05:32:49,001 --> 05:32:51,000 FORTHCOMING ANSWERS. 7256 05:32:51,001 --> 05:32:54,000 THEN WE HAD THE CONFIRMATION 7257 05:32:54,001 --> 05:32:57,000 HEARING OF JUDGE ROBERT BORK, 7258 05:32:57,001 --> 05:32:59,000 WHO ANSWERED QUESTIONS. 7259 05:32:59,001 --> 05:33:03,000 JUDGE BORK DID SO IN A CONTEXT 7260 05:33:03,001 --> 05:33:04,000 OF HAVING VERY EXTENSIVE LEGAL 7261 05:33:04,001 --> 05:33:07,000 WRITINGS. 7262 05:33:07,001 --> 05:33:09,000 A VERY FAMOUS LAW REVIEW ARTICLE 7263 05:33:09,001 --> 05:33:11,000 IN THE UNIVERSITY OF INDIANA, 7264 05:33:11,001 --> 05:33:14,000 1971, ON "ORIGINAL INTENT." 7265 05:33:14,001 --> 05:33:15,000 AND IN THE CONTEXT OF THAT 7266 05:33:15,001 --> 05:33:19,000 ARTICLE, BOOKS, MANY SPEECHES, 7267 05:33:19,001 --> 05:33:20,000 LAW REVIEW ARTICLES, I THINK IT 7268 05:33:20,001 --> 05:33:24,000 IS REALISTIC TO SAY THAT JUDGE 7269 05:33:24,001 --> 05:33:25,000 BORK HAD NO ALTERNATIVE BUT TO 7270 05:33:25,001 --> 05:33:28,000 ANSWER QUESTIONS. 7271 05:33:28,001 --> 05:33:31,000 SINCE THE BORK HRINGS, THE 7272 05:33:31,001 --> 05:33:34,000 PATTERN HAS EVOLVED WHERE 7273 05:33:34,001 --> 05:33:37,000 NOMINEES DO NOT GIVE SUBSTANTIVE ANSWERS. 7274 05:33:37,001 --> 05:33:40,000 IT IS A WELL-KNOWN FACT OF 7275 05:33:40,001 --> 05:33:41,000 CONFIRMATION LIFE THAT THERE ARE 7276 05:33:41,001 --> 05:33:42,000 MURDER BOARDS. 7277 05:33:42,001 --> 05:33:43,000 THAT'S WHAT THEY CALL THEM WHEN 7278 05:33:43,001 --> 05:33:45,000 THE NOMINEE GOES DOWN TO THE 7279 05:33:45,001 --> 05:33:46,000 WHITE HOUSE AND THEY HAVE -- 7280 05:33:46,001 --> 05:33:49,000 HAVE PRACTICE -- HAVE PRACTICE 7281 05:33:49,001 --> 05:33:55,000 SESSIONS. 7282 05:33:55,001 --> 05:33:57,000 AND SINCE THAT TIME, IT HAS BEEN 7283 05:33:57,001 --> 05:33:59,000 PURE -- PURE PREPARED PAB LUM. 7284 05:33:59,001 --> 05:34:01,000 THAT'S WHAT WE GET IN THESE 7285 05:34:01,001 --> 05:34:04,000 HEARINGS. 7286 05:34:04,001 --> 05:34:06,000 SO THERE HAD BEEN REASON TO 7287 05:34:06,001 --> 05:34:09,000 EXPECT MORE FROM MS. KAGAN. 7288 05:34:09,001 --> 05:34:11,000 WE DIDN'T GET IT. 7289 05:34:11,001 --> 05:34:14,000 I'D EXPRESSED AT THE HEARINGS 7290 05:34:14,001 --> 05:34:19,000 THE CONCERN AS TO HOW WE COULD 7291 05:34:19,001 --> 05:34:21,000 GET ANSWERS ON SUBSTANTIVE ISSUES. 7292 05:34:21,001 --> 05:34:23,000 AND WAS THERE ANY WAY TO FIND 7293 05:34:23,001 --> 05:34:27,000 THAT OUT SHORT OF VOTING "NO" 7294 05:34:27,001 --> 05:34:32,000 AND REJECTING A NOMINEE. 7295 05:34:32,001 --> 05:34:35,000 I DECIDED THAT IT WOULD NOT BE 7296 05:34:35,001 --> 05:34:38,000 SENSIBLE TO VOTE "NO" TO ISSUE A 7297 05:34:38,001 --> 05:34:41,000 PROTEST VOTE IN THE CONTEXT OF 7298 05:34:41,001 --> 05:34:43,000 WHAT HAS REGRETTABLY BECOME THE 7299 05:34:43,001 --> 05:34:45,000 STANDARD MS. KAGAN WAS FOLLOWING 7300 05:34:45,001 --> 05:34:47,000 THE ACCEPTED PRACTICE. 7301 05:34:47,001 --> 05:34:49,000 WHY NOT, IN THE FACE OF THAT 7302 05:34:49,001 --> 05:34:50,000 STRONG ADVICE FROM THE WHITE 7303 05:34:50,001 --> 05:34:53,000 HOUSE AND THE SUCCESS OF ALL OF 7304 05:34:53,001 --> 05:34:57,000 THE NOMINEES WHO HAVE 7305 05:34:57,001 --> 05:34:58,000 STONEWALLED AND BEEN CONFIRMED. 7306 05:34:58,001 --> 05:35:01,000 I HAVE SINCE DISCUSSED WITH A 7307 05:35:01,001 --> 05:35:03,000 NUMBER OF MY COLLEAGUES THE 7308 05:35:03,001 --> 05:35:06,000 PROSPECT OF REVERTING TO WHAT 7309 05:35:06,001 --> 05:35:10,000 SENATOR DECONCINI AND I HAD 7310 05:35:10,001 --> 05:35:13,000 THOUGHT ABOUT IN EARLY 1987 TO 7311 05:35:13,001 --> 05:35:14,000 TRY TO ESTABLISH SOME STANDARDS, 7312 05:35:14,001 --> 05:35:18,000 NOT THAT SENATORS WOULD BE BOUND 7313 05:35:18,001 --> 05:35:20,000 TO FOLLOW THEM -- WE HAVE OUR 7314 05:35:20,001 --> 05:35:22,000 STATURE UNDER THE CONSTITUTION 7315 05:35:22,001 --> 05:35:25,000 TO ASK QUESTIONS AS WE CHOOSE; 7316 05:35:25,001 --> 05:35:27,000 WE CAN'T COMPEL ANSWERS; PERHAPS 7317 05:35:27,001 --> 05:35:30,000 THEY WOULDN'T BE FOLLOWED. 7318 05:35:30,001 --> 05:35:32,000 BUT IT COULD OBVIATE ONE LINE OF 7319 05:35:32,001 --> 05:35:34,000 EXCUSE THAT NOMINEES HAVE GIVEN: 7320 05:35:34,001 --> 05:35:35,000 WELL, THEY BETTER NOT BE TOO 7321 05:35:35,001 --> 05:35:37,000 SPECIFIC OR THEY MAY BREACH THE 7322 05:35:37,001 --> 05:35:38,000 STANDARDS OF ETHICS, IF THE 7323 05:35:38,001 --> 05:35:40,000 SENATE WERE TO ESTABLISH 7324 05:35:40,001 --> 05:35:42,000 STANDARDS AS TO WHAT WE WERE 7325 05:35:42,001 --> 05:35:45,000 LOOKING FOR FOR CONFIRMATION, IT 7326 05:35:45,001 --> 05:35:47,000 IS OUR CONSTITUTIONAL ROLE, 7327 05:35:47,001 --> 05:35:50,000 THERE MIETD BE SOME BENEFIT. 7328 05:35:50,001 --> 05:35:54,000 -- MIGHT BE SOME BIVMENT IN 7329 05:35:54,001 --> 05:35:57,000 LOOKING FURTHER TO TRY TO MAKE A 7330 05:35:57,001 --> 05:35:59,000 DETERMINATION ON THE KAGAN 7331 05:35:59,001 --> 05:36:02,000 NOMINATION, THERE WERE TWO OF 7332 05:36:02,001 --> 05:36:03,000 HER RESPONSES WHICH I FOUND 7333 05:36:03,001 --> 05:36:06,000 IMPRESSIVE. 7334 05:36:06,001 --> 05:36:10,000 ONE WAS HER COMMENT ABOUT -- 7335 05:36:10,001 --> 05:36:12,000 COMMENTS ABOUT JUSTICE THURGOOD 7336 05:36:12,001 --> 05:36:14,000 MARSHALL, WHO SHE HAD CLERKED 7337 05:36:14,001 --> 05:36:17,000 FOR, WHO WAS A ROLE MODEL, 7338 05:36:17,001 --> 05:36:18,000 EXTENSIVE TESTIMONY ABOUT HER 7339 05:36:18,001 --> 05:36:21,000 ADMIRATION F THE WAY HE 7340 05:36:21,001 --> 05:36:26,000 DECIDED CASES. 7341 05:36:26,001 --> 05:36:28,000 AND I INFERRED FROM THAT LOOKING 7342 05:36:28,001 --> 05:36:29,000 AS WELL I COULD TO FIND HER 7343 05:36:29,001 --> 05:36:31,000 PHILOSOPHY, IDEOLOGY WHERE SHE 7344 05:36:31,001 --> 05:36:32,000 WOULD SND, SHE WOULD BE 7345 05:36:32,001 --> 05:36:34,000 PROTECTIVE OF CIVIL RIGHTS, 7346 05:36:34,001 --> 05:36:36,000 PROTECTIVE OF CONSTITUTIONAL 7347 05:36:36,001 --> 05:36:39,000 RIGHTS, INDIVIDUAL RIGHTS, AND 7348 05:36:39,001 --> 05:36:41,000 RESPECTFUL OF RIGHTS OF THE 7349 05:36:41,001 --> 05:36:43,000 CONGRESS. 7350 05:36:43,001 --> 05:36:46,000 THE SECOND LINE OF ANSWERS WHICH 7351 05:36:46,001 --> 05:36:48,000 SHE GE, WHICH I THOUGHT -- AND 7352 05:36:48,001 --> 05:36:51,000 I DO THINK IS VERY, VERY 7353 05:36:51,001 --> 05:36:52,000 IMPORTANT -- IS HER VERY 7354 05:36:52,001 --> 05:36:55,000 POSITIVE ATTITUDE ABOUT 7355 05:36:55,001 --> 05:36:59,000 TELEVISING THE SUPREME COURT. 7356 05:36:59,001 --> 05:37:02,000 AND I WILL COME TO THAT IN A FEW 7357 05:37:02,001 --> 05:37:08,000 MINUTES, BECAUSE THERE IS AN 7358 05:37:08,001 --> 05:37:12,000 URGENT NEED TO FIND SOME LINE TO 7359 05:37:12,001 --> 05:37:15,000 HAVE SOME INFLUENCE ON THE COURT 7360 05:37:15,001 --> 05:37:17,000 AS TO THEIR FOLLOWING PRECEDENT 7361 05:37:17,001 --> 05:37:19,000 ON STARE DECIS, AS TO THEIR 7362 05:37:19,001 --> 05:37:22,000 RESPECTING THE CONSTITUTIONAL 7363 05:37:22,001 --> 05:37:23,000 ROLE OF THE CONGRESS IN 7364 05:37:23,001 --> 05:37:25,000 FACT-FINDING. 7365 05:37:25,001 --> 05:37:28,000 THEY HAVE JUDICIAL INDEPENDENCE, 7366 05:37:28,001 --> 05:37:31,000 AND THAT IS THE BULWARK OF THE REPUBLIC. 7367 05:37:31,001 --> 05:37:33,000 THE RULE OF LAW IS WHAT MAKES 7368 05:37:33,001 --> 05:37:35,000 THE UNITED STATES FAMOUS. 7369 05:37:35,001 --> 05:37:38,000 THE STABILITY OF OUR GOVERNMENT. 7370 05:37:38,001 --> 05:37:40,000 AND THAT IS VERY HIGHLY PRIZED. 7371 05:37:40,001 --> 05:37:41,000 A LONG HISTORY OF THIS COUNTRY. 7372 05:37:41,001 --> 05:37:43,000 IT HAS BEEN THE COURTS WHICH 7373 05:37:43,001 --> 05:37:45,000 HAVE PROTECTED CIVIL RIGHTS. 7374 05:37:45,001 --> 05:37:48,000 IT WAS THE SUPREME COURT, AS WE 7375 05:37:48,001 --> 05:37:49,000 ALL KNOW, IN BROWN v. BOARD OF 7376 05:37:49,001 --> 05:37:51,000 EDUCATION WHERE THE COURT DID 7377 05:37:51,001 --> 05:37:53,000 WHAT THE CONGRESS DID NOT HAVE 7378 05:37:53,001 --> 05:37:55,000 THE POLITICAL COURAGE TO DO, NOR 7379 05:37:55,001 --> 05:37:58,000 DID THE PRESIDENT HAVE THE 7380 05:37:58,001 --> 05:38:00,000 POLITICAL COURAGE TO DO, TO 7381 05:38:00,001 --> 05:38:02,000 INTEGRATE THE SCHOOLS IN AMERICA. 7382 05:38:02,001 --> 05:38:04,000 THE BEST EXAMPLE BUT ONLY ONE 7383 05:38:04,001 --> 05:38:07,000 EXAMPLE AS TO WHERE THE COURTS 7384 05:38:07,001 --> 05:38:08,000 HAVE STOOD UP AS A BULWARK TO DO 7385 05:38:08,001 --> 05:38:10,000 WHAT THE ELECTED BRANCHES HAVE 7386 05:38:10,001 --> 05:38:12,000 NOT HAD THE POLITICAL COURAGE TO 7387 05:38:12,001 --> 05:38:15,000 DO. 7388 05:38:15,001 --> 05:38:19,000 AND NOW ON TO -- ON TO THE 7389 05:38:19,001 --> 05:38:22,000 SPECIFICS AS TO THE CONCERNS ON 7390 05:38:22,001 --> 05:38:25,000 THE SUBSTANTIVE QUESTIONS WHICH 7391 05:38:25,001 --> 05:38:26,000 MS. KAGAN DID NOT GIVE A 7392 05:38:26,001 --> 05:38:30,000 SUBSTANTIVE ANSWER. 7393 05:38:30,001 --> 05:38:32,000 I PRESSED HER HARD ON THE 7394 05:38:32,001 --> 05:38:34,000 SEPARATION OF POWERS. 7395 05:38:34,001 --> 05:38:36,000 WE ALL KNOW OF THE THREE 7396 05:38:36,001 --> 05:38:39,000 BRANCHES OF GOVERNMENT. 7397 05:38:39,001 --> 05:38:41,000 CONGRESS WAS ARTICLE 1, THOUGHT 7398 05:38:41,001 --> 05:38:44,000 BY THE FRAMERS TO BE THE MOST 7399 05:38:44,001 --> 05:38:45,000 IMPORTANT, THE EXECUTIVE, 7400 05:38:45,001 --> 05:38:46,000 PRESIDENT, NUMBER TWO; AND THE 7401 05:38:46,001 --> 05:38:48,000 COURT, NUMBER THREE. 7402 05:38:48,001 --> 05:38:50,000 I THINK IF THE CONSTITUTION WERE 7403 05:38:50,001 --> 05:38:51,000 TO BE REWRITTEN TODAY, THE 7404 05:38:51,001 --> 05:38:54,000 NUMBERS WOULD BE CHANGED. 7405 05:38:54,001 --> 05:38:56,000 THE COURT WOULD BE NUMBER ONE 7406 05:38:56,001 --> 05:38:58,000 AND THE OTHER BRANCHES WOULD BE 7407 05:38:58,001 --> 05:38:59,000 A DISTANT SECOND AND THIRD. 7408 05:38:59,001 --> 05:39:01,000 BUT, AGAIN, THE EXECUTIVE WOULD 7409 05:39:01,001 --> 05:39:02,000 BE AHEAD OF THE LEGISLATIVE 7410 05:39:02,001 --> 05:39:06,000 BRANCH BECAUSE OF THE WAY THE 7411 05:39:06,001 --> 05:39:10,000 COURT HAS INTERPRETED THE LAW. 7412 05:39:10,001 --> 05:39:13,000 COMING TO THE FIRST LINE OF 7413 05:39:13,001 --> 05:39:15,000 LEGISLATIVE RESPONSIBILITY IS 7414 05:39:15,001 --> 05:39:18,000 FACT-FINDING ON WHICH WE MAKE A 7415 05:39:18,001 --> 05:39:22,000 DETERMINATION OF WHAT OUGHT TO 7416 05:39:22,001 --> 05:39:24,000 BE ENACTED BY WAY OF PUBLIC 7417 05:39:24,001 --> 05:39:26,000 POLICY. 7418 05:39:26,001 --> 05:39:29,000 THE SUPREME COURT OF THE UNITED 7419 05:39:29,001 --> 05:39:30,000 STATES HAS CHANGED THE RULES OF 7420 05:39:30,001 --> 05:39:33,000 THE GAME. 7421 05:39:33,001 --> 05:39:36,000 FOR A LONG TIME IT WAS A 7422 05:39:36,001 --> 05:39:38,000 RATIONAL BASIS TEST TO DECIDE 7423 05:39:38,001 --> 05:39:39,000 WHETHER THE RECORD WAS 7424 05:39:39,001 --> 05:39:42,000 SUFFICIENT FOR THE LEGISLATION 7425 05:39:42,001 --> 05:39:45,000 WHICH WAS ENACTED. 7426 05:39:45,001 --> 05:39:46,000 THAT WAS THE STANDARD 7427 05:39:46,001 --> 05:39:50,000 ILLUSTRATIVELY IN THE WORKS 7428 05:39:50,001 --> 05:39:54,000 SE, JUSTICE HARLAN IN 1868. 7429 05:39:54,001 --> 05:39:58,000 AND THEN IN 1997 IN A CASE 7430 05:39:58,001 --> 05:40:03,000 CAPTIONED CITY OF BOURNE, THE SUPREME COURT OF THE UNITED 7431 05:40:03,001 --> 05:40:06,000 STATES APTED ADOPTED A NEW STANDARD. 7432 05:40:06,001 --> 05:40:10,000 WAS THE EVIDENCE PROPORTIONATE 7433 05:40:10,001 --> 05:40:13,000 AND CONGRUENT, A TEST OF 7434 05:40:13,001 --> 05:40:17,000 PROPORTIONATE AND CONGRUENT. 7435 05:40:17,001 --> 05:40:20,000 AND THAT TEST, WITH ITS 7436 05:40:20,001 --> 05:40:21,000 FLUIDITY, HAS BEEN THE BASIS FOR 7437 05:40:21,001 --> 05:40:23,000 THE SUPREME COURT LEGISLATING, 7438 05:40:23,001 --> 05:40:25,000 TAKING OVER FROM THE CONGRS. 7439 05:40:25,001 --> 05:40:28,000 NOW IT IS THE SUPREME COURT 7440 05:40:28,001 --> 05:40:31,000 WHICH DECIDES THE SUFFICIENCY OF 7441 05:40:31,001 --> 05:40:33,000 THE RECORD ON A TEST WHICH IS 7442 05:40:33,001 --> 05:40:35,000 NOT DISCERNIBLE WITH ANY 7443 05:40:35,001 --> 05:40:39,000 SPECIFICITY. 7444 05:40:39,001 --> 05:40:42,000 JUSTICE SCALIA HAS CALLED THE 7445 05:40:42,001 --> 05:40:44,000 TEST A FLABBY TEST, WHICH IS 7446 05:40:44,001 --> 05:40:47,000 USED FOR JUDICIAL LEGISLATION. 7447 05:40:47,001 --> 05:40:49,000 THAT WAS THE FACT IN THE CASE OF 7448 05:40:49,001 --> 05:40:52,000 UNITED STATES v. MORRISON, 7449 05:40:52,001 --> 05:40:53,000 WHICH TESTED THE 7450 05:40:53,001 --> 05:40:55,000 CONSTITUTIONALITY OF LEGISLATION 7451 05:40:55,001 --> 05:40:57,000 TO PROTECT WOMEN AGAINST 7452 05:40:57,001 --> 05:40:59,000 VIOLENCE. 7453 05:40:59,001 --> 05:41:01,000 AND THERE WAS IN THE HEARINGS 7454 05:41:01,001 --> 05:41:02,000 LEADING TO THAT IMPORTANT 7455 05:41:02,001 --> 05:41:06,000 LEGISLATION A MOUNTAIN OF 7456 05:41:06,001 --> 05:41:08,000 EVIDENCE AS DESCRIBED BY JUSTICE 7457 05:41:08,001 --> 05:41:11,000 SOUTER IN DISSENT. 7458 05:41:11,001 --> 05:41:12,000 BUT YET THE COURT OVERTURNED 7459 05:41:12,001 --> 05:41:15,000 THAT IMPORTANT STATUTE TO 7460 05:41:15,001 --> 05:41:16,000 PROTECT WOMEN AGAINST VIOLENCE, 7461 05:41:16,001 --> 05:41:18,000 CITING THE CONGRESS'S -- QUOTE 7462 05:41:18,001 --> 05:41:20,000 -- "METHODS OF REASONING" -- 7463 05:41:20,001 --> 05:41:22,000 CLOSE QUOTE. 7464 05:41:22,001 --> 05:41:25,000 A LITTLE HARD TO UNDERSTAND WHAT 7465 05:41:25,001 --> 05:41:26,000 THAT -- WHAT THAT MEANS. 7466 05:41:26,001 --> 05:41:30,000 WE'RE NOT PERFECT AROUND HERE. 7467 05:41:30,001 --> 05:41:32,000 A LOT OF FAILURES IN THIS BODY, 7468 05:41:32,001 --> 05:41:33,000 ESPECIALLY NOW, EVEN SOME 7469 05:41:33,001 --> 05:41:36,000 FAILURES ACROSS THE ROTUNDA IN 7470 05:41:36,001 --> 05:41:37,000 THE HOUSE OF REPRESENTATIVES. 7471 05:41:37,001 --> 05:41:41,000 BUT WHO CAN CHALLENGE THE 7472 05:41:41,001 --> 05:41:42,000 MESSAGES ODDS OF REASONING? 7473 05:41:42,001 --> 05:41:43,000 AND -- BUT WHO CAN CHALLENGE THE 7474 05:41:43,001 --> 05:41:46,000 METHOD OF REASONING? 7475 05:41:46,001 --> 05:41:47,000 AND WHAT MIRACULOUS OCCURRENCES 7476 05:41:47,001 --> 05:41:50,000 THERE WHEN SOMEBODY LEAVES THE HEARING ROOM OF THE SUPREME 7477 05:41:50,001 --> 05:41:52,000 COURT, WALKS ACROSS CONSTITUTION 7478 05:41:52,001 --> 05:41:55,000 AVENUE, ACROSS THE GREEN FROM 7479 05:41:55,001 --> 05:41:59,000 THIS CHAMBER, AND SUDDENLY ARE 7480 05:41:59,001 --> 05:42:01,000 IN A POSITION TO HAVE SOME 7481 05:42:01,001 --> 05:42:03,000 SUPERIOR REASONING? 7482 05:42:03,001 --> 05:42:08,000 BUT THAT -- THAT LEGISLATION 7483 05:42:08,001 --> 05:42:10,000 WENT DOWN, AS S DOES SO MUCH LEGISLATION. 7484 05:42:10,001 --> 05:42:14,000 ANOTHER ILLUSTRATION IS IN 7485 05:42:14,001 --> 05:42:16,000 CITIZENS UNITED, WHERE 7486 05:42:16,001 --> 05:42:17,000 100,000-PAGE RECORD WAS 7487 05:42:17,001 --> 05:42:22,000 MASSACHUSETTSED, DETAILING THE 7488 05:42:22,001 --> 05:42:23,000 -- WAS AMASSED DETAILING THE 7489 05:42:23,001 --> 05:42:25,000 PROBLEMS OF WHAT GOES ON IN 7490 05:42:25,001 --> 05:42:27,000 POLITICS AND WHAT THE CORRUPTING 7491 05:42:27,001 --> 05:42:30,000 INFLUENCE IS. 7492 05:42:30,001 --> 05:42:32,000 AND AS A RESULT THE 7493 05:42:32,001 --> 05:42:35,000 MCCAIN-FEINGOLD LAW WAS PASSED 7494 05:42:35,001 --> 05:42:36,000 AND IN CITIZENS UNEWTSED, A 7495 05:42:36,001 --> 05:42:38,000 CRITICAL SECTION WAS DECLARED 7496 05:42:38,001 --> 05:42:41,000 UNCONSTITUTIONAL. 7497 05:42:41,001 --> 05:42:43,000 SO THERE YOU HAVE A TREMENDOUS 7498 05:42:43,001 --> 05:42:47,000 SHIFT IN POWER FROM THE CONGRESS 7499 05:42:47,001 --> 05:42:49,000 OF THE UNITED STATES TO THE 7500 05:42:49,001 --> 05:42:52,000 COURTS, TO THE SUPREME COURT. 7501 05:42:52,001 --> 05:42:54,000 AND WHAT WE LEGISLATE ON OUR 7502 05:42:54,001 --> 05:42:57,000 TRADITIONAL STANDARDS -- 7503 05:42:57,001 --> 05:42:58,000 WE'VE THE INSTITUTIONAL 7504 05:42:58,001 --> 05:43:00,000 EXPERTISE, AND I AM GOING TO 7505 05:43:00,001 --> 05:43:01,000 COME TO THAT IN SOME GREATER 7506 05:43:01,001 --> 05:43:03,000 DETAIL IN A FEW MOMENTS 7507 05:43:03,001 --> 05:43:05,000 ANALYZING THE POSITIO WHICH 7508 05:43:05,001 --> 05:43:07,000 HAVE BEEN TAKEN BY CHIEF JUSTICE 7509 05:43:07,001 --> 05:43:10,000 ROBERTS AND JUSTICE ALITO. 7510 05:43:10,001 --> 05:43:12,000 BUT FIRST AN ANALYSIS OF A 7511 05:43:12,001 --> 05:43:13,000 DECISIVE SHIFT FROM THE POWER OF 7512 05:43:13,001 --> 05:43:16,000 THE CONGRESS OF THE UNITED 7513 05:43:16,001 --> 05:43:19,000 STATES TO THE EXECUTIVE BRANCH, 7514 05:43:19,001 --> 05:43:23,000 TO THE PRESIDENT. 7515 05:43:23,001 --> 05:43:27,000 AND HERE AGAIN I'LL BE SPECIFIC. 7516 05:43:27,001 --> 05:43:29,000 IN WHAT IS ARGUABLY THE MOST 7517 05:43:29,001 --> 05:43:32,000 DRAMATIC, HISTORIC CONFRONTATION 7518 05:43:32,001 --> 05:43:34,000 BETWEEN CONGRESS AND THE 7519 05:43:34,001 --> 05:43:36,000 PRESIDENT IS THE FOREIGN 7520 05:43:36,001 --> 05:43:38,000 INTELLIGENCE SURVEILLANCE ACT, 7521 05:43:38,001 --> 05:43:42,000 WHICH ESTABLISHES THE EXCLUSIVE 7522 05:43:42,001 --> 05:43:47,000 WAY TO INVADE PRIVACY AND GET A 7523 05:43:47,001 --> 05:43:48,000 WIRETAP CONTRASTED WITH THE 7524 05:43:48,001 --> 05:43:51,000 TERRORIST SURVEILLANCE PROGRAM, 7525 05:43:51,001 --> 05:43:54,000 INITIATED BY PRESIDENT BUSH FOR 7526 05:43:54,001 --> 05:44:01,000 WARRANTLESS WIRETAPPING. 7527 05:44:01,001 --> 05:44:02,000 IT WAS FRIDAY IN JULY OF 2005, I 7528 05:44:02,001 --> 05:44:07,000 CHAIRED THE JUDICIARY COMMITTEE. 7529 05:44:07,001 --> 05:44:09,000 WE WERE IN THE FINAL DAY ON THE REAUTHORIZATION OF THE PATRIOT 7530 05:44:09,001 --> 05:44:12,000 ACT. 7531 05:44:12,001 --> 05:44:15,000 AND THAT MORNING "THE NEW YORK 7532 05:44:15,001 --> 05:44:17,000 TIMES" BROKE THE INFORMATION 7533 05:44:17,001 --> 05:44:21,000 ABOUT THIS SECRET PROGRAM OF 7534 05:44:21,001 --> 05:44:22,000 WARRANTLESS WIRETAPPING. 7535 05:44:22,001 --> 05:44:24,000 AND, AS IT WAS EXPRESSED ON THE 7536 05:44:24,001 --> 05:44:26,000 FLOOR THAT DAY, SENATORS WHO HAD 7537 05:44:26,001 --> 05:44:29,000 BEEN PREPARED TO VOTE TO 7538 05:44:29,001 --> 05:44:32,000 REAUTHORIZE THE PATRIOT ACT DECLINED TO DO SO. 7539 05:44:32,001 --> 05:44:34,000 THERE WAS EXTENDED PROCEEDINGS, 7540 05:44:34,001 --> 05:44:36,000 WHICH IS NOT RELEVANT TO THE 7541 05:44:36,001 --> 05:44:39,000 SPECIFIC POINT I'M MACING NOW. 7542 05:44:39,001 --> 05:44:43,000 BUT BACK TO THE POINT: 7543 05:44:43,001 --> 05:44:44,000 A FEDERAL JUDGE IN DETROIT 7544 05:44:44,001 --> 05:44:45,000 DECLARED THE TERRORIST 7545 05:44:45,001 --> 05:44:49,000 SURVEILLANCE PROGRAM 7546 05:44:49,001 --> 05:44:52,000 UNCONSTITUTIONAL. 7547 05:44:52,001 --> 05:44:54,000 THE CASE WENT ON APPEAL TO THE 7548 05:44:54,001 --> 05:44:56,000 COURT OF APPEALS FOR THE SIXTH 7549 05:44:56,001 --> 05:45:02,000 CIRCUIT, WHICH DECLINED TO HEAR 7550 05:45:02,001 --> 05:45:03,000 IT ON A 2-1 DECISION, AND THE 7551 05:45:03,001 --> 05:45:07,000 PETION FOR THE SUPREME COURT 7552 05:45:07,001 --> 05:45:09,000 TO TAKE THE CASE WAS DENIED; NO 7553 05:45:09,001 --> 05:45:12,000 REASON GIVEN. 7554 05:45:12,001 --> 05:45:14,000 THE DOCTRINE OF STANDING IS A 7555 05:45:14,001 --> 05:45:18,000 VERY FLEXIBLE DOCTRINE WHICH I 7556 05:45:18,001 --> 05:45:21,000 THINK IN A PRACTICAL SENSE, 7557 05:45:21,001 --> 05:45:24,000 ALTHOUGH AN INELEGANTLY STATED, 7558 05:45:24,001 --> 05:45:25,000 ACCURATELY STATED IS THE WAY THE 7559 05:45:25,001 --> 05:45:28,000 COURT CONDUCTS A CASE IF THEY 7560 05:45:28,001 --> 05:45:29,000 DON'T WANT TO FIND A STANDING, 7561 05:45:29,001 --> 05:45:31,000 AVOID A JUDICIAL DECISION. 7562 05:45:31,001 --> 05:45:34,000 BUTNY FAIR-MINDED READING OF 7563 05:45:34,001 --> 05:45:35,000 THE DISSENTING OPINION IN THE 7564 05:45:35,001 --> 05:45:38,000 SIXTH CIRCUIT WOULD SAY THERE 7565 05:45:38,001 --> 05:45:41,000 WAS PLENTY OF ROOM FOR A 7566 05:45:41,001 --> 05:45:45,000 JUDICIAL DECISION, ADEQUATE 7567 05:45:45,001 --> 05:45:49,000 BASIS FOR STANDING IN THAT CASE. 7568 05:45:49,001 --> 05:45:50,000 WE CURRENTLY HAVE BEFORE THE 7569 05:45:50,001 --> 05:45:54,000 JUDICIARY COMMITTEE LEGISLATION 7570 05:45:54,001 --> 05:45:58,000 ON ANOTHER ISSUE WHICH 7571 05:45:58,001 --> 05:46:00,000 ILLUSTRATES THE SHIFT OF POWER 7572 05:46:00,001 --> 05:46:01,000 FROM THE CONGRESS TO THE 7573 05:46:01,001 --> 05:46:03,000 EXECUTIVE BRANCH BECAUSE OF THE 7574 05:46:03,001 --> 05:46:05,000 FAILURE OF THE SUPREME COURT TO 7575 05:46:05,001 --> 05:46:13,000 DECIDE A CASE. 7576 05:46:13,001 --> 05:46:16,000 AND THAT INVOLVES THE LITIGATION 7577 05:46:16,001 --> 05:46:18,000 KILLED IN 9/11 AGAINST THE 7578 05:46:18,001 --> 05:46:22,000 GOVERNMENT OF SAUDI ARABIA, 7579 05:46:22,001 --> 05:46:26,000 SAUDI PRINCES AND SAUDI 7580 05:46:26,001 --> 05:46:28,000 CHARITIES, ON A LITIGATION WHERE 7581 05:46:28,001 --> 05:46:30,000 THERE IS ENORMOUS FACTUAL RECORD 7582 05:46:30,001 --> 05:46:34,000 SHOWING THE CONNECTION BETWEEN 7583 05:46:34,001 --> 05:46:41,000 FINANCING OF AL QAEDA AND THE 7584 05:46:41,001 --> 05:46:42,000 SAUDI CHARITIES WHICH ARE REALLY 7585 05:46:42,001 --> 05:46:44,000 INSTRUMENTALITIES OF THE SAUDI 7586 05:46:44,001 --> 05:46:45,000 GOVERNMENT SHOWING THE FINANCING 7587 05:46:45,001 --> 05:46:47,000 FROM SAUDI PRINCES AND FROM THE 7588 05:46:47,001 --> 05:46:50,000 GOVERNMENT ITSELF. 7589 05:46:50,001 --> 05:46:52,000 THE SECOND CIRCUIT DENIED THE 7590 05:46:52,001 --> 05:46:57,000 CLAIM ON WHAT I THINK IS A 7591 05:46:57,001 --> 05:47:02,000 SPURIOUS GROUND, SAYING THAT 7592 05:47:02,001 --> 05:47:04,000 SAUDI ARABIA IS NOT ON THE LIST 7593 05:47:04,001 --> 05:47:06,000 OF COUNTRIES DECLARED BY THE 7594 05:47:06,001 --> 05:47:07,000 STATE DEPARTMENT TO BE TERRORIST 7595 05:47:07,001 --> 05:47:10,000 STATES. 7596 05:47:10,001 --> 05:47:13,000 WELL, THERE'S AN ALTERNATIVE 7597 05:47:13,001 --> 05:47:16,000 UNDER THE IMMUNITY STATUTE, AND 7598 05:47:16,001 --> 05:47:19,000 THAT IS FOR TORTIOUS CONDUCT. 7599 05:47:19,001 --> 05:47:21,000 THAT IS WRONGFUL ACTIONS, 7600 05:47:21,001 --> 05:47:23,000 CERTAINLY WOULD ENCOMPASS FLYING 7601 05:47:23,001 --> 05:47:25,000 A PLANE INTO A BUILDING. 7602 05:47:25,001 --> 05:47:27,000 AND SENATOR SCHUMER, SENATOR 7603 05:47:27,001 --> 05:47:29,000 LINDSEY GRAHAM AND I HAVE 7604 05:47:29,001 --> 05:47:33,000 INTRODUCED LEGISLATION TO 7605 05:47:33,001 --> 05:47:37,000 CLARIFY THIS ISSUE. 7606 05:47:37,001 --> 05:47:38,000 WHEN AN APPLICATION WAS MADE FOR 7607 05:47:38,001 --> 05:47:39,000 CERTIORARI TO THE SUPREME COURT, 7608 05:47:39,001 --> 05:47:41,000 THE ADMINISTRATION OPPOSED 7609 05:47:41,001 --> 05:47:45,000 HAVING THE SUPREME COURT HEAR 7610 05:47:45,001 --> 05:47:49,000 THE CASE ON THE GROUND THAT THE 7611 05:47:49,001 --> 05:47:50,000 ACTS BY THE SAUDIS IN FINANCING 7612 05:47:50,001 --> 05:47:52,000 THE TERRORISTS OCCURRED OUTSIDE 7613 05:47:52,001 --> 05:47:56,000 OF THE UNITED STATES. 7614 05:47:56,001 --> 05:47:58,000 NOW, THAT HARDLY IS A RATIONAL BASIS. 7615 05:47:58,001 --> 05:48:00,000 WHEN YOU PLOT IN SAUDI ARABIA 7616 05:48:00,001 --> 05:48:02,000 AND PAY MONEY TO BRING 7617 05:48:02,001 --> 05:48:05,000 TERRORISTS TO THE UNITED STATES 7618 05:48:05,001 --> 05:48:09,000 TO BOARD AIRPLANES, TO HIJACK 7619 05:48:09,001 --> 05:48:11,000 THE PLANES TO FLY INTO AMERICAN 7620 05:48:11,001 --> 05:48:12,000 BUILDINGS, TO FLY AND CRASH IN 7621 05:48:12,001 --> 05:48:14,000 PENNSYLVANIA, FLY AND CRASH IN 7622 05:48:14,001 --> 05:48:18,000 THE PENTAGON, THAT CERTAINLY 7623 05:48:18,001 --> 05:48:20,000 HAPPENS TO THE UNITED STATES. 7624 05:48:20,001 --> 05:48:25,000 ARGUABLY, THE MOST BARBARIC 7625 05:48:25,001 --> 05:48:28,000 CONDUCT IN THE HISTORY OF 7626 05:48:28,001 --> 05:48:31,000 MANKIND, CERTAINLY AMONG THE TERRORISTS. 7627 05:48:31,001 --> 05:48:34,000 EVENTUALLY THESE CASES, BECAUSE 7628 05:48:34,001 --> 05:48:37,000 WHEN I PRESSED MS. KAGAN, AND 7629 05:48:37,001 --> 05:48:41,000 OTHERS DID, WHAT STANDARD WOULD 7630 05:48:41,001 --> 05:48:45,000 YOU APPLY, GOING BACK TO FACT 7631 05:48:45,001 --> 05:48:47,000 FINDING, THE TWO STANDARDS ARE 7632 05:48:47,001 --> 05:48:50,000 PROPORTIONATE AND CONGRUENT, 7633 05:48:50,001 --> 05:48:52,000 CONTRASTED WITH RATIONAL BASIS. 7634 05:48:52,001 --> 05:48:56,000 THAT'S NOT ASKING A NOMINEE TO 7635 05:48:56,001 --> 05:48:59,000 DECIDE A CASE, ASKING A NOMINEE 7636 05:48:59,001 --> 05:49:02,000 TO DECIDE A STANDARD; CERTAINLY 7637 05:49:02,001 --> 05:49:03,000 WELL WITHIN THE AMBIT OF 7638 05:49:03,001 --> 05:49:05,000 MS. KAGAN'S FAMOUS LAW REVIEW 7639 05:49:05,001 --> 05:49:10,000 ARTICLE IN 1995. 7640 05:49:10,001 --> 05:49:12,000 BUT SHE SIMPLY STATED WOULD NOT ANSWER. 7641 05:49:12,001 --> 05:49:13,000 ON THE CASES INVOLVING THE 7642 05:49:13,001 --> 05:49:18,000 TERRORISTURVEILLANCE PROGRAM 7643 05:49:18,001 --> 05:49:20,000 AND THE LITIGATION ON 9/11, 7644 05:49:20,001 --> 05:49:22,000 WOULD SHE GRANT TO HEAR THE 7645 05:49:22,001 --> 05:49:25,000 CASE, NOT HOW SHE WOULD DECIDE 7646 05:49:25,001 --> 05:49:26,000 THE CASE, BUT WOULD SHE TAKE THE 7647 05:49:26,001 --> 05:49:33,000 CASE. 7648 05:49:33,001 --> 05:49:37,000 AGAIN, A REFUSAL TO ANSWER THE QUESTION. 7649 05:49:37,001 --> 05:49:40,000 SO THAT IN THIS CONTEXT, WE ARE 7650 05:49:40,001 --> 05:49:48,000 REALLY SEARCHING FOR WAYS TO 7651 05:49:48,001 --> 05:49:50,000 FIND OUT MORE ABOUT THE NOMINEES 7652 05:49:50,001 --> 05:49:54,000 MS. KAGAN HAS SAID JUST ENOUGH 7653 05:49:54,001 --> 05:49:55,000 TO GET MY VOTE BECAUSE OF MY 7654 05:49:55,001 --> 05:49:58,000 VOTING MY HOPES RATHER THAN MY 7655 05:49:58,001 --> 05:50:02,000 FEARS THAT SHE WILL BE IN THE 7656 05:50:02,001 --> 05:50:04,000 MOLD AS A GENERAL SENSE OF 7657 05:50:04,001 --> 05:50:06,000 JUSTICE THURGOOD MARSHALL AND 7658 05:50:06,001 --> 05:50:08,000 ALSO BECAUSE OF HER POSITION ON 7659 05:50:08,001 --> 05:50:12,000 TELEVISION, WHICH I THINK HAS 7660 05:50:12,001 --> 05:50:15,000 THE POTENTIAL FOR BEING A VERY 7661 05:50:15,001 --> 05:50:17,000 AMELIORATING FACTOR IN WHAT GOES 7662 05:50:17,001 --> 05:50:22,000 ON IN THE SUPREME COURT. 7663 05:50:22,001 --> 05:50:26,000 AND THAT IS THE BUSINESS OF 7664 05:50:26,001 --> 05:50:29,000 PUBLICITY AND THE FAMOUS 7665 05:50:29,001 --> 05:50:34,000 STATEMENT, ARTICLE ACTUALLY OF 7666 05:50:34,001 --> 05:50:39,000 WHAT PUBLICITY CAN DO BY LAWYER 7667 05:50:39,001 --> 05:50:42,000 LOUIS D. BRANDEIS BACK IN 1913 7668 05:50:42,001 --> 05:50:45,000 PROVIDES INSIGHTS AS TO WHERE WE 7669 05:50:45,001 --> 05:50:46,000 MIGHT GO IN THE MODERN WORLD 7670 05:50:46,001 --> 05:50:49,000 WITH TELEVISION. 7671 05:50:49,001 --> 05:50:52,000 IN THAT ARTICLE, BRANDEIS MADE 7672 05:50:52,001 --> 05:50:57,000 THE FAMOUS STATEMENT THAT 7673 05:50:57,001 --> 05:51:01,000 "SUNLIGHT IS SAID TO BE THE BEST 7674 05:51:01,001 --> 05:51:03,000 OF DISINFECTANTS." 7675 05:51:03,001 --> 05:51:05,000 THAT MAY BE A LITTLE STRONG FOR 7676 05:51:05,001 --> 05:51:09,000 THESE CIRCUMSTANCES. 7677 05:51:09,001 --> 05:51:10,000 WE'RE NOT EXACTLY LOOKING AT A 7678 05:51:10,001 --> 05:51:11,000 DISINFECTANT, BUT NEITHER WAS 7679 05:51:11,001 --> 05:51:13,000 BRANDEIS. 7680 05:51:13,001 --> 05:51:15,000 AND HE WAS REALLY TALKING ABOUT 7681 05:51:15,001 --> 05:51:18,000 PUBLICITY IS THE WAY YOU DEAL 7682 05:51:18,001 --> 05:51:22,000 WITH PROBLEMS IN OUR SOCIETY. 7683 05:51:22,001 --> 05:51:24,000 AND I BELIEVE THAT IF WE HAD 7684 05:51:24,001 --> 05:51:26,000 PUBLICITY AND PEOPLE UNDERSTOOD 7685 05:51:26,001 --> 05:51:32,000 WHAT WAS GOING ON, THERE WOULD 7686 05:51:32,001 --> 05:51:35,000 BE A REALISTIC CHANCE TO HAVE 7687 05:51:35,001 --> 05:51:38,000 THE COURT RESPECT THE POWERS OF 7688 05:51:38,001 --> 05:51:40,000 CONGRESS AND HAVE THE COURT 7689 05:51:40,001 --> 05:51:44,000 RESPECT THE SEPARATION OF POWER 7690 05:51:44,001 --> 05:51:50,000 BETWEEN THE PRESIDENT AND THE CONGRESS. 7691 05:51:50,001 --> 05:51:53,000 I NOW TURN TO THE CONFIRMATION 7692 05:51:53,001 --> 05:51:55,000 PROCEEDINGS AS TO CHIEF JUSTICE 7693 05:51:55,001 --> 05:51:58,000 ROBERTS AND JUSTICE ALITO, WHICH 7694 05:51:58,001 --> 05:52:01,000 BEAR VERY HEAVILY ON THIS SUBJECT. 7695 05:52:01,001 --> 05:52:05,000 BOTH OF THE NOMINEES WERE 7696 05:52:05,001 --> 05:52:11,000 QUESTIONED AT LENGTH DURING THE 7697 05:52:11,001 --> 05:52:13,000 COURSE OF THE NOMINATION PROCEEDING. 7698 05:52:13,001 --> 05:52:15,000 AND THIS IS WHAT CHIEF 7699 05:52:15,001 --> 05:52:17,000 ROBERTS -- CHIEF JUSTICE ROBERTS 7700 05:52:17,001 --> 05:52:19,000 TESTIFIED TO ON THE QUESTION OF 7701 05:52:19,001 --> 05:52:22,000 FACT FINDING -- QUOTE -- "THE 7702 05:52:22,001 --> 05:52:23,000 REASON THAT CONGRESSIONAL FACT 7703 05:52:23,001 --> 05:52:26,000 FINDING AND DETERMINATION IS 7704 05:52:26,001 --> 05:52:28,000 IMPORTANT ISECAUSE THE COURTS 7705 05:52:28,001 --> 05:52:30,000 RECOGNIZE THEY CAN'T DO THAT. 7706 05:52:30,001 --> 05:52:33,000 THE SUPREME COURT CANNOT SIT AND 7707 05:52:33,001 --> 05:52:36,000 HEAR WITNESS AFTER WITNESS IN A 7708 05:52:36,001 --> 05:52:37,000 PARTICULAR AREA AND DEVELOP THAT 7709 05:52:37,001 --> 05:52:40,000 KIND OF A RECORD. 7710 05:52:40,001 --> 05:52:42,000 COURTS CAN'T MAKE THE POLICY 7711 05:52:42,001 --> 05:52:44,000 JUDGMENTS ABOUT WHAT TYPE OF 7712 05:52:44,001 --> 05:52:47,000 LEGISLATION IS NECESSARY IN 7713 05:52:47,001 --> 05:52:50,000 LIGHT OF THE FINDINGS THAT ARE MADE. 7714 05:52:50,001 --> 05:52:53,000 THE COURTS DON'T HAVE IT. 7715 05:52:53,001 --> 05:52:54,000 CONGRESS DOES. 7716 05:52:54,001 --> 05:52:57,000 IT'S CONSTITUTIONAL AUTHORITY. 7717 05:52:57,001 --> 05:53:00,000 IT'S NOT OUR JOB." 7718 05:53:00,001 --> 05:53:01,000 AND HE GOES ON TO SAY THAT WHEN 7719 05:53:01,001 --> 05:53:04,000 COURTS ENGAGE IN FACT FINDING, 7720 05:53:04,001 --> 05:53:05,000 THEY ARE REALLY IN EFFECT 7721 05:53:05,001 --> 05:53:08,000 LEGISLATING. 7722 05:53:08,001 --> 05:53:09,000 THESE ARE HIS EXACT WORDS IN THE 7723 05:53:09,001 --> 05:53:12,000 CONFIRMATION HEARING. 7724 05:53:12,001 --> 05:53:14,000 AS A JUDGE, YOU MAY BE BEGINNING 7725 05:53:14,001 --> 05:53:15,000 TO TRANSGRESS INTO THE AREA OF 7726 05:53:15,001 --> 05:53:17,000 MAKING A LAW. 7727 05:53:17,001 --> 05:53:19,000 THAT'S WHEN YOU ARE IN A 7728 05:53:19,001 --> 05:53:24,000 POSITION OF REEVALUATING 7729 05:53:24,001 --> 05:53:26,000 LEGISLATIVE FINDINGS BECAUSE 7730 05:53:26,001 --> 05:53:27,000 THAT DOESN LOOK LIKE A 7731 05:53:27,001 --> 05:53:29,000 JUDICIAL FUNCTION. 7732 05:53:29,001 --> 05:53:32,000 AND THIS IS WHAT JUSTICE ALITO 7733 05:53:32,001 --> 05:53:34,000 HAD TO SAY IN HIS CONFIRMATION 7734 05:53:34,001 --> 05:53:36,000 HEARING -- QUOTE -- "THE 7735 05:53:36,001 --> 05:53:39,000 JUDICIARY IS NOT EQUIPPED AT ALL 7736 05:53:39,001 --> 05:53:42,000 TO MAKE FINDINGS ABOUT WHAT IS 7737 05:53:42,001 --> 05:53:45,000 GOING ON IN THE REAL WORLD. 7738 05:53:45,001 --> 05:53:47,000 NOT THIS SORT OF LEGISLATIVE FINDINGS. 7739 05:53:47,001 --> 05:53:50,000 AND CONGRESS, OF COURSE, IS IN 7740 05:53:50,001 --> 05:53:53,000 THE BEST POSITION TO DO THAT. 7741 05:53:53,001 --> 05:53:56,000 CONGRESS CAN HAVE HEARINGS AND 7742 05:53:56,001 --> 05:53:58,000 EXAME COMPLEX SOCIAL ISSUES, 7743 05:53:58,001 --> 05:54:01,000 RECEIVE STATISTICAL DATA, HEAR 7744 05:54:01,001 --> 05:54:07,000 TESTIMONY FROM EXPERTS, ANALYZE 7745 05:54:07,001 --> 05:54:09,000 THAT AND SIN -- SYNTHESIZE THAT 7746 05:54:09,001 --> 05:54:11,000 AND REDUCE THAT TO THE FINDINGS. 7747 05:54:11,001 --> 05:54:13,000 THESE TWO JUSTICES WERE IN THE 7748 05:54:13,001 --> 05:54:15,000 FIVE-PERSON MAJORITYHICH 7749 05:54:15,001 --> 05:54:16,000 DISREGARDED 100,000 PAGES OF 7750 05:54:16,001 --> 05:54:20,000 CONGRESSIONAL FINDINGS TO MAKE 7751 05:54:20,001 --> 05:54:22,000 THE DECLARATION THAT 7752 05:54:22,001 --> 05:54:24,000 McCAIN-FEINGOLD WAS 7753 05:54:24,001 --> 05:54:32,000 UNCONSTITUTIONAL. 7754 05:54:32,001 --> 05:54:33,000 THEN YOU HAVE THE SIMILAR ISSUE 7755 05:54:33,001 --> 05:54:38,000 OF STARE DECIS. 7756 05:54:38,001 --> 05:54:40,000 THE BEST WAY TO LIMIT JUDICIAL 7757 05:54:40,001 --> 05:54:42,000 ACTIVISM IS BY RESPECTING WHAT 7758 05:54:42,001 --> 05:54:43,000 CONGRESS HAS DONE ON FACT 7759 05:54:43,001 --> 05:54:45,000 FINDING. 7760 05:54:45,001 --> 05:54:47,000 AND WHEN THE COURT DISREGARDS 7761 05:54:47,001 --> 05:54:50,000 CONGRESSIONAL FACT FINDING AND 7762 05:54:50,001 --> 05:54:52,000 SUBSTITUTES ITS OWN JUDGMENT, 7763 05:54:52,001 --> 05:54:53,000 AND ON POLICY THEY'RE MAKING THE 7764 05:54:53,001 --> 05:54:55,000 LAW. 7765 05:54:55,001 --> 05:54:56,000 THAT'S CONCEDED BY THE CITATIONS 7766 05:54:56,001 --> 05:54:58,000 THAT I HAVE READ. 7767 05:54:58,001 --> 05:54:59,000 THEN THERE WAS EXTENSIVE 7768 05:54:59,001 --> 05:55:02,000 QUESTIONING OF BOTH CHIEF 7769 05:55:02,001 --> 05:55:06,000 JUSTE ROBERTS AND JUSTICE 7770 05:55:06,001 --> 05:55:13,000 ALITO ON THE ISSUE OF STARE 7771 05:55:13,001 --> 05:55:17,000 DECISIS, AND THIS IS WHAT CHIEF 7772 05:55:17,001 --> 05:55:24,000 JUSTICE ROBERTS HAD TOAY IN 7773 05:55:24,001 --> 05:55:26,000 PART ABOUT STARE DECIS: "I DO 7774 05:55:26,001 --> 05:55:27,000 THINK THAT IT IS A JOLT TO THE 7775 05:55:27,001 --> 05:55:31,000 LEGAL SYSTEM WHEN YOU OVERREAL 7776 05:55:31,001 --> 05:55:33,000 RAOUL A PRECEDENT -- WHEN YOU 7777 05:55:33,001 --> 05:55:35,000 OVERRULE A PRECEDENT. 7778 05:55:35,001 --> 05:55:38,000 PRECEDENT PLAYS AN IMPORTANT 7779 05:55:38,001 --> 05:55:40,000 ROLE IN PROMOTING STABILITY AND EVENHANDEDNESS. 7780 05:55:40,001 --> 05:55:41,000 IT IS NOT ENOUGH THAT YOU MAY 7781 05:55:41,001 --> 05:55:43,000 THINK THE PRIOR DECISION WAS 7782 05:55:43,001 --> 05:55:45,000 WRONGLY DECIDED." 7783 05:55:45,001 --> 05:55:46,000 JUSTICELITO SAID ABOUT THE 7784 05:55:46,001 --> 05:55:50,000 SAME THING IN PART -- QUOTE -- 7785 05:55:50,001 --> 05:55:51,000 "IT IS IMPORTANT -- THAT IS 7786 05:55:51,001 --> 05:55:54,000 STARE DECISIS IS IMPORTANT -- 7787 05:55:54,001 --> 05:55:55,000 BECAUSE IT LIMITS THE POWER OF 7788 05:55:55,001 --> 05:55:58,000 THE JUDICIARY. 7789 05:55:58,001 --> 05:56:03,000 IT IS IMPORTANT BECAUSE IT 7790 05:56:03,001 --> 05:56:08,000 PROTECTS RELIANCE INTERESTS." 7791 05:56:08,001 --> 05:56:12,000 THESE ARE THE TWO OF THE 7792 05:56:12,001 --> 05:56:15,000 FIVE-PERN MAJORITY WHICH 7793 05:56:15,001 --> 05:56:20,000 DECIDED IN CITIZENS UNITED THAT 7794 05:56:20,001 --> 05:56:27,000 McCAIN-FEINGOLD WAS UNCONSTITUTIONAL. 7795 05:56:27,001 --> 05:56:32,000 THIS IS WHAT THE SEVENTH CIRCUIT 7796 05:56:32,001 --> 05:56:34,000 JUDGE RICHARD POSNER, A 7797 05:56:34,001 --> 05:56:36,000 DISTINGUISHED JURIST HAD TO SAY 7798 05:56:36,001 --> 05:56:37,000 ABOUT THE ROLE OF CHIEF JUSTICE 7799 05:56:37,001 --> 05:56:40,000 ROBERTS IN THESE DECISIONS -- 7800 05:56:40,001 --> 05:56:46,000 QUOTE -- "COMING FROM HIS BOOK 7801 05:56:46,001 --> 05:56:48,000 'THE JUDGE AS OCCASIONAL 7802 05:56:48,001 --> 05:56:50,000 LEGISLATOR,' LESS THAN TWO YEARS 7803 05:56:50,001 --> 05:56:51,000 AFTER HIS CONFIRMATION, HE 7804 05:56:51,001 --> 05:56:52,000 DEMONSTRATED BY HIS JUDICIAL 7805 05:56:52,001 --> 05:56:55,000 VOTES AND OPINIONS THAT HE 7806 05:56:55,001 --> 05:56:58,000 ASPIRES TO REMAKE SIGNIFICANT 7807 05:56:58,001 --> 05:56:59,000 AREAS OF CONSTITUTIONAL LAW. 7808 05:56:59,001 --> 05:57:02,000 THE TENSION BETWEEN WHAT HE SAID 7809 05:57:02,001 --> 05:57:05,000 AT HIS CONFIRMATION HEARING AND 7810 05:57:05,001 --> 05:57:08,000 WHAT HE IS DOING AS A JUSTICE IS 7811 05:57:08,001 --> 05:57:13,000 A BLOW TO ROBERTS' REPUTATION 7812 05:57:13,001 --> 05:57:14,000 FOR CANDOR AND FURTHER 7813 05:57:14,001 --> 05:57:16,000 DEBASEMENT OF THE ALREADY 7814 05:57:16,001 --> 05:57:20,000 DEBASED CURRENCY OF THE 7815 05:57:20,001 --> 05:57:25,000 TESTIMONY OF NOMINEES AT 7816 05:57:25,001 --> 05:57:27,000 JUDICIAL CONFIRMATION HEARINGS." 7817 05:57:27,001 --> 05:57:30,000 IN -- GOING INTO THESE ISSUES AS 7818 05:57:30,001 --> 05:57:33,000 TO THE CONTRAST BETWEEN WHAT 7819 05:57:33,001 --> 05:57:34,000 CHIEF JUSTICE ROBERTS AND 7820 05:57:34,001 --> 05:57:37,000 JUSTICE ALITO TESTIFIED TO AND 7821 05:57:37,001 --> 05:57:40,000 WHAT THEY HAVE DONE ONCE ON THE 7822 05:57:40,001 --> 05:57:42,000 COURT, I DO NOT CHALLENGE THEIR 7823 05:57:42,001 --> 05:57:44,000 GOOD FAITH. 7824 05:57:44,001 --> 05:57:46,000 I UNDERSTAND THE DIFFERENCE 7825 05:57:46,001 --> 05:57:47,000 BETWEEN WHAT HAPPENS IN A 7826 05:57:47,001 --> 05:57:49,000 JUDICIAL CONFIRMATION HEARING 7827 05:57:49,001 --> 05:57:51,000 AND WHAT HAPPENS IN COURT OR 7828 05:57:51,001 --> 05:57:55,000 WHEN THERE IS A CASE IN 7829 05:57:55,001 --> 05:58:03,000 CONTROVERSY TO BE DECIDED BY THE 7830 05:58:03,001 --> 05:58:06,000 JUSTICES OF THE SUPREME COURT. 7831 05:58:06,001 --> 05:58:08,000 BUT THESE VARIATIONS ARE SO 7832 05:58:08,001 --> 05:58:10,000 STARK, THAT HAD THERE BEEN AN 7833 05:58:10,001 --> 05:58:13,000 UNDERSTANDING BY SENATORS ON 7834 05:58:13,001 --> 05:58:16,000 THESE CONFIRMATION HEARINGS AS 7835 05:58:16,001 --> 05:58:18,000 TO THE JUDICIAL PHILOSOPHY AND 7836 05:58:18,001 --> 05:58:23,000 HOW FACT FINDING WOULD BE 7837 05:58:23,001 --> 05:58:24,000 HANDLED IN COURT AND HOW 7838 05:58:24,001 --> 05:58:27,000 PRECEDENTS AND STARE DECIS 7839 05:58:27,001 --> 05:58:31,000 WOULD BE HANDLED IN COURT, TO 7840 05:58:31,001 --> 05:58:34,000 TAKE THE OPINION BY CHIEF 7841 05:58:34,001 --> 05:58:36,000 JUSTICE ROBERTS, HIS CONCURRING 7842 05:58:36,001 --> 05:58:41,000 OPINION IN THE CITIZENS UNITED 7843 05:58:41,001 --> 05:58:47,000 WHERE THEY DISREGARD THE AUSTIN 7844 05:58:47,001 --> 05:58:48,000 CASE AS A -- QUOTE -- 7845 05:58:48,001 --> 05:58:50,000 "ABERRATION." 7846 05:58:50,001 --> 05:58:53,000 THERE IS YOUR ROLE TO ELIMINATE STAR DECIS. 7847 05:58:53,001 --> 05:58:56,000 THE CASE IS AN ABERRATION, DOWN 7848 05:58:56,001 --> 05:58:58,000 THE DRAIN. 7849 05:58:58,001 --> 05:59:02,000 SO WHAT HAPPENS -- WHAT HAPPENS 7850 05:59:02,001 --> 05:59:04,000 TO THE PRECEDENTS? 7851 05:59:04,001 --> 05:59:07,000 IS ROE V. WADE SAFE BASED ON 7852 05:59:07,001 --> 05:59:09,000 THAT STANDARD? 7853 05:59:09,001 --> 05:59:11,000 I QUESTIONED AT LENGTH CHIEF 7854 05:59:11,001 --> 05:59:17,000 JUSTICE ROBERTS ABOUT ROE V. 7855 05:59:17,001 --> 05:59:19,000 WA, THE SUCCESSOR, CASEY V. 7856 05:59:19,001 --> 05:59:21,000 PLANNED PARENTHOOD AND HOW THE 7857 05:59:21,001 --> 05:59:23,000 CASE STOOD. 7858 05:59:23,001 --> 05:59:24,000 AUSTIN WAS NOT REVERSED WHEN THE 7859 05:59:24,001 --> 05:59:25,000 SUPREME COURT HAD AN OPPORTUNITY 7860 05:59:25,001 --> 05:59:27,000 TO DO SO. 7861 05:59:27,001 --> 05:59:30,000 CHIEF JUSTICE ROBERTS SAYS IN 7862 05:59:30,001 --> 05:59:32,000 HIS OPINION, WELL, NOBODY ASKED 7863 05:59:32,001 --> 05:59:34,000 US TO REVERSE -- NOBODY ASKED 7864 05:59:34,001 --> 05:59:37,000 THE SUPREME COURT TO REVERSE THE 7865 05:59:37,001 --> 05:59:40,000 AUSTIN CASE. 7866 05:59:40,001 --> 05:59:42,000 WELL, THE WAY THE COURT REACHED 7867 05:59:42,001 --> 05:59:45,000 FOR THE HILLARY MOVIE IN 7868 05:59:45,001 --> 05:59:47,000 CITIZENS UNITED, THE WAY THEY 7869 05:59:47,001 --> 05:59:52,000 RECONSTRUCTED THE ISSUE, YOU 7870 05:59:52,001 --> 05:59:58,000 DON'T HAVE TO -- IT'S A THIN 7871 05:59:58,001 --> 06:00:02,000 HAVVENEER TO SAY THAT THE COURT IS 7872 06:00:02,001 --> 06:00:04,000 GUIDED AND WHO ASKS THE COURT 7873 06:00:04,001 --> 06:00:05,000 FOR A DECISION MUCH WHERE THAT 7874 06:00:05,001 --> 06:00:09,000 LEADS US TO IS REALLY WHAT CAN 7875 06:00:09,001 --> 06:00:11,000 BE DONE TO HAVE JUSTICES FULFILL 7876 06:00:11,001 --> 06:00:12,000 STANDARDS AGREED TO AT THEIR 7877 06:00:12,001 --> 06:00:15,000 HEARINGS? 7878 06:00:15,001 --> 06:00:17,000 WHAT CAN BE DONE TO HAVE 7879 06:00:17,001 --> 06:00:19,000 JUSTICES ADHERE TO STANDARDS 7880 06:00:19,001 --> 06:00:25,000 AGREED TO AT TIR HEARINGS? 7881 06:00:25,001 --> 06:00:26,000 I SPOKE EARLIER ABOUT THE 7882 06:00:26,001 --> 06:00:28,000 SANCTITY OF JUDICIAL 7883 06:00:28,001 --> 06:00:31,000 INDEPENDENCE AND HOW THE COURT 7884 06:00:31,001 --> 06:00:34,000 IS THE BULWARK OF OUR REPUBLIC 7885 06:00:34,001 --> 06:00:38,000 AND THE RULE OF LAW. 7886 06:00:38,001 --> 06:00:44,000 AND THE MOST PROMISING IDEA THAT 7887 06:00:44,001 --> 06:00:47,000 I HAVE FOUND IS -- IN THE SEARCH 7888 06:00:47,001 --> 06:00:50,000 IS TO DEMONSTRATE TO THE PUBLIC 7889 06:00:50,001 --> 06:00:53,000 WHAT THE COURT DOES, HOW 7890 06:00:53,001 --> 06:00:55,000 POWERFUL THE COURT IS. 7891 06:00:55,001 --> 06:00:57,000 HOW IT MAKES DECISION THE 7892 06:00:57,001 --> 06:01:00,000 CUTTING EDGE OF ALL OF THE 7893 06:01:00,001 --> 06:01:02,000 JUDGMENTS IN OUR SOCIETY. 7894 06:01:02,001 --> 06:01:06,000 IT DECIDES WHO LIVES AND WHO 7895 06:01:06,001 --> 06:01:08,000 DICE, A WOMAN'S RIGHT TO CHOOSE. 7896 06:01:08,001 --> 06:01:09,000 IT DECIDES ON LATE-TERM 7897 06:01:09,001 --> 06:01:12,000 ABORTION. 7898 06:01:12,001 --> 06:01:15,000 IT DECIDES ON THE DEATH PENALTY. 7899 06:01:15,001 --> 06:01:17,000 IT DECIDES WHETHER JUVENILES MAY 7900 06:01:17,001 --> 06:01:20,000 BE EXECUTED FOR CRIMES COMMITTED 7901 06:01:20,001 --> 06:01:23,000 BELOW THE AGE OF 18. 7902 06:01:23,001 --> 06:01:25,000 IT DECIDES AFFIRMATIVE ACTION, 7903 06:01:25,001 --> 06:01:27,000 WHO GOES TO SCHOOL, WHO GETS 7904 06:01:27,001 --> 06:01:29,000 INTO THE BEST COLLEGES, WHO GETS 7905 06:01:29,001 --> 06:01:32,000 THE BEST JOB. 7906 06:01:32,001 --> 06:01:35,000 IT DECIDES ASSISTED SUICIDE. 7907 06:01:35,001 --> 06:01:37,000 IT DECIDES CASES OF 7908 06:01:37,001 --> 06:01:41,000 INTERNATIONAL LAW. 7909 06:01:41,001 --> 06:01:44,000 ON ALL OF THE CUTTING ISSUES, 7910 06:01:44,001 --> 06:01:46,000 AMICA'S CITED AS BEING THE 7911 06:01:46,001 --> 06:01:47,000 MOST LITIGIOUS COUNTRY ON THE 7912 06:01:47,001 --> 06:01:50,000 FACE OF THE EARTH. 7913 06:01:50,001 --> 06:01:51,000 THERE IS NOT AN UNDERSTANDING AS 7914 06:01:51,001 --> 06:01:53,000 TO HOW FAR THE POWER OF THE 7915 06:01:53,001 --> 06:01:55,000 SUPREME COURT IS, HOW THEY HAVE 7916 06:01:55,001 --> 06:01:56,000 TAKEN IT FROM THE CONGRESS, HOW 7917 06:01:56,001 --> 06:01:58,000 THEY HAVE LET THE EXECUTIVE 7918 06:01:58,001 --> 06:01:59,000 BRANCH TAKE IT FROM THE 7919 06:01:59,001 --> 06:02:02,000 CONGRESS. 7920 06:02:02,001 --> 06:02:04,000 IN AN ARTICLE PUBLISHED JUST 7921 06:02:04,001 --> 06:02:09,000 YESTERDAY IN "THE WASHINGTON 7922 06:02:09,001 --> 06:02:10,000 POST", STEWART TAYLOR JR., 7923 06:02:10,001 --> 06:02:13,000 NOTED, A COMMENTATOR THE SUPREME 7924 06:02:13,001 --> 06:02:16,000 COURT HAD SOME INTERESTING 7925 06:02:16,001 --> 06:02:21,000 OBSERVATIONS RIGHT ON THIS PRECISE SUBJECT. 7926 06:02:21,001 --> 06:02:26,000 THIS IS WHAT HE WROTE IN PART -- 7927 06:02:26,001 --> 06:02:29,000 "THE KEY IS FOR THE JUSTICES TO 7928 06:02:29,001 --> 06:02:32,000 PREVENT -- IS TO PREVENT 7929 06:02:32,001 --> 06:02:42,000 JUDICIAL REVIEW FROM DENIGRATING 7930 06:02:42,001 --> 06:02:45,000 INTO JUDICIAL U USER PATION, WHICH 7931 06:02:45,001 --> 06:02:47,000 GOES TO THE -- TO DEFER MORE 7932 06:02:47,001 --> 06:02:48,000 OFTEN TO THE ELECTED BRANCHES. 7933 06:02:48,001 --> 06:02:51,000 WELL, THAT'S THE CONGRESS. 7934 06:02:51,001 --> 06:02:52,000 THAT'S THE HUE AND CRY. 7935 06:02:52,001 --> 06:02:55,000 THAT'S THE QUESTION ASKED EVERY 7936 06:02:55,001 --> 06:02:56,000 TIME WE HAVE A CONFIRMATION 7937 06:02:56,001 --> 06:02:57,000 HEARING IN THE JUDICIARY COMMITTEE. 7938 06:02:57,001 --> 06:03:00,000 WILL UOU INTERPRET THE LAW 7939 06:03:00,001 --> 06:03:03,000 RATHER THAN MAKE THE LAW? 7940 06:03:03,001 --> 06:03:05,000 BUT THESE ARE MATTERS WHERE THEY 7941 06:03:05,001 --> 06:03:10,000 MAKE THE LAW. 7942 06:03:10,001 --> 06:03:14,000 AND THEN TAYLOR GOES ON TO WRITE 7943 06:03:14,001 --> 06:03:17,000 THAT THE WAY TO DEAL WITH THE 7944 06:03:17,001 --> 06:03:18,000 COURT -- WELL, I'LL QUOTE IT 7945 06:03:18,001 --> 06:03:21,000 DIRECTLY, "THE JUSTICE THE KNOW 7946 06:03:21,001 --> 06:03:24,000 AS LONG AS THEY STOP SHORT OF 7947 06:03:24,001 --> 06:03:26,000 INFURIATING THE PUBLIC, THEY CAN 7948 06:03:26,001 --> 06:03:28,000 CONTINUE TO ENJOY BETTER 7949 06:03:28,001 --> 06:03:33,000 APPROVAL RATINGS THAN CONGRESS 7950 06:03:33,001 --> 06:03:36,000 AND THE PRESIDENT EVEN AS THEY 7951 06:03:36,001 --> 06:03:38,000 USURP THOSE BRANCH'S POWERS." 7952 06:03:38,001 --> 06:03:39,000 THIS IS AN INTERESTING TEST. 7953 06:03:39,001 --> 06:03:42,000 THE FIRST TIME I'VE SEEN IT 7954 06:03:42,001 --> 06:03:44,000 ARGUE PARTICULAR RATED THIS WAY, 7955 06:03:44,001 --> 06:03:46,000 IT'S THE -- QUOTE -- 7956 06:03:46,001 --> 06:03:49,000 "INFURIATING THE PUBLIC TEST." 7957 06:03:49,001 --> 06:03:53,000 AND WHATEVER YOU MAY SAY IN A 7958 06:03:53,001 --> 06:03:55,000 DEMOCRACY IN OUR SOCIETY THE 7959 06:03:55,001 --> 06:03:57,000 PUBLIC HAS THE ULTIMATE POWER 7960 06:03:57,001 --> 06:04:02,000 AND IT IS FELT. 7961 06:04:02,001 --> 06:04:09,000 IT IS FELT IN MANY, MANY WAYS. 7962 06:04:09,001 --> 06:04:10,000 PERHAPS EVEN BY OSMOSIS, 7963 06:04:10,001 --> 06:04:12,000 WHEREVER YOU GO. 7964 06:04:12,001 --> 06:04:14,000 WHEN THE PUBLIC ATTITUDE CHANGES 7965 06:04:14,001 --> 06:04:16,000 ON SEGREGATION, THE SUPREME 7966 06:04:16,001 --> 06:04:19,000 COURT CHANGES THE DECISION. 7967 06:04:19,001 --> 06:04:23,000 WHEN THE PUBLIC ATTITUDE CHANGES 7968 06:04:23,001 --> 06:04:27,000 ON -- ON SEXUAL ORIENTATION, THE 7969 06:04:27,001 --> 06:04:30,000 SUPREME COURT DECISION CHANGES 7970 06:04:30,001 --> 06:04:32,000 WHEN YOU FIND SO MANY STATES 7971 06:04:32,001 --> 06:04:36,000 RECOGNIZE SAME-SEX MARRIAGE, IT 7972 06:04:36,001 --> 06:04:37,000 IS A CHANGE RECOGNIZED BY THE 7973 06:04:37,001 --> 06:04:40,000 COURTS AS THE MASSACHUSETTS 7974 06:04:40,001 --> 06:04:43,000 COURT RECENTLY DID IN DECLARING 7975 06:04:43,001 --> 06:04:44,000 THE DEFENSE OF MARRIAGE ACT 7976 06:04:44,001 --> 06:04:47,000 UNCONSTITUTIONAL. 7977 06:04:47,001 --> 06:04:48,000 IT WOULDN'T HAVE PASSED WHEN IT 7978 06:04:48,001 --> 06:04:50,000 WAS 86-14 IN THE SENATE OF THE 7979 06:04:50,001 --> 06:04:53,000 UNITED STATES IN 1997. 7980 06:04:53,001 --> 06:04:55,000 SO HOW DO YOU ACTIVATE THE 7981 06:04:55,001 --> 06:04:57,000 DOCTRINE OF -- QUOTE -- 7982 06:04:57,001 --> 06:05:02,000 "INFURIATING THE PUBLIC," CLOSE 7983 06:05:02,001 --> 06:05:04,000 THQUOTE? 7984 06:05:04,001 --> 06:05:05,000 THE BEST WAY, TO MY KNOWLEDGE I 7985 06:05:05,001 --> 06:05:07,000 TO TELEVISE THE COURT. 7986 06:05:07,001 --> 06:05:09,000 IN THAT MAGNIFICENT CHAMBER 7987 06:05:09,001 --> 06:05:10,000 ACROSS THE GREEN FROM WHERE WE 7988 06:05:10,001 --> 06:05:16,000 SIT, I STAND, YOU SIT AT THE 7989 06:05:16,001 --> 06:05:19,000 MOMENT, YOU HAVE A -- A -- A -- 7990 06:05:19,001 --> 06:05:20,000 A ROOM WHICH SEATS ABOUT 300 7991 06:05:20,001 --> 06:05:22,000 PEOPLE. 7992 06:05:22,001 --> 06:05:24,000 AND FOLKS GET TO GO IN THERE FOR 7993 06:05:24,001 --> 06:05:26,000 ABOUT THREE MINUTES. 7994 06:05:26,001 --> 06:05:28,000 AND THAT'S WHERE THE MOST 7995 06:05:28,001 --> 06:05:31,000 IMPORTANT BUSINESS OF THE -- OF 7996 06:05:31,001 --> 06:05:35,000 THE COUNTRY IS BEING CONDUCTED. 7997 06:05:35,001 --> 06:05:40,000 YEARS AGO THE SUPREME COURT 7998 06:05:40,001 --> 06:05:41,000 DECIDED THAT WHEN IT CAME TO 7999 06:05:41,001 --> 06:05:44,000 JUDICIAL PROCEEDINGS THAT 8000 06:05:44,001 --> 06:05:45,000 NEWSPAPERS HAD A RIGHT TO BE IN 8001 06:05:45,001 --> 06:05:48,000 THE COURTROOM. 8002 06:05:48,001 --> 06:05:52,000 THAT SAME LOGIC WOULD GIVE 8003 06:05:52,001 --> 06:05:54,000 TEVISION CAMERAS AND 8004 06:05:54,001 --> 06:05:56,000 ELECTRONIC RADIO A SIMILAR -- 8005 06:05:56,001 --> 06:05:59,000 SIMILAR RIGHTS TO INFORM THE PUBLIC. 8006 06:05:59,001 --> 06:06:05,000 THAT WAS A CASE IN 1940. 8007 06:06:05,001 --> 06:06:08,000 TODAY THE INFORMATION IS GLEAMED 8008 06:06:08,001 --> 06:06:09,000 LARGELY FROM TELEVISION AND BY A 8009 06:06:09,001 --> 06:06:11,000 LESSER EXTENT BY RADIO. 8010 06:06:11,001 --> 06:06:12,000 AND SO IF THE PUBLIC KNEW WHAT 8011 06:06:12,001 --> 06:06:14,000 WAS GOING ON IN THE SUPREME 8012 06:06:14,001 --> 06:06:17,000 COURT, IF THEY UNDERSTOOD IT, 8013 06:06:17,001 --> 06:06:19,000 THERE WOULD BE A CHANCE THAT 8014 06:06:19,001 --> 06:06:22,000 THERE WOULD BE -- THEY WOULD BE 8015 06:06:22,001 --> 06:06:23,000 A LITTLE MORE RESPECTFUL OF THE 8016 06:06:23,001 --> 06:06:24,000 CONSTITUTIONAL DOCTRINE OF 8017 06:06:24,001 --> 06:06:26,000 SEPARATION OF POWERS. 8018 06:06:26,001 --> 06:06:29,000 WHEN THE CASE OF BUSH V. GORE 8019 06:06:29,001 --> 06:06:31,000 WAS SCHEDULED FOR ARGUMENT, THEN 8020 06:06:31,001 --> 06:06:35,000 SENATOR BIDEN AND I WROTE TO 8021 06:06:35,001 --> 06:06:37,000 CHIEF JUSTICE REHNQUIST ASKING 8022 06:06:37,001 --> 06:06:39,000 THAT TELEVISION CAMERAS BE 8023 06:06:39,001 --> 06:06:41,000 PERMITTED INSIDE THE COURTROOM. 8024 06:06:41,001 --> 06:06:42,000 TO GET INSIDE THE COURTROOM THAT 8025 06:06:42,001 --> 06:06:45,000 DAY, YOU PRACTICALLY HAD TO BE 8026 06:06:45,001 --> 06:06:46,000 ON THE JUDICIARY COMMITTEE, AND 8027 06:06:46,001 --> 06:06:47,000 IT WAS PACKED. 8028 06:06:47,001 --> 06:06:48,000 AND AMERICA SHOULD HAVE BEEN 8029 06:06:48,001 --> 06:06:51,000 ABLE TO SEE IT. 8030 06:06:51,001 --> 06:06:53,000 AND SURROUNDING THE BUILDING ON 8031 06:06:53,001 --> 06:06:54,000 ALL SIDES WERE MOBILE TELEVISION 8032 06:06:54,001 --> 06:06:56,000 UNITS. 8033 06:06:56,001 --> 06:06:58,000 I'M NOT SURE EXACTLY WHAT THEY WERE DOING. 8034 06:06:58,001 --> 06:07:00,000 THE MOST THEY COULD HAV WOULD 8035 06:07:00,001 --> 06:07:01,000 BE STANDUPS OUTSIDE THE CHAMBER 8036 06:07:01,001 --> 06:07:04,000 BECAUSE THEY COULDN'T -- THEY 8037 06:07:04,001 --> 06:07:07,000 COULDN'T GET INSIDE THE CHAMBER. 8038 06:07:07,001 --> 06:07:10,000 AND THAT DAY THE SUPREME COURT 8039 06:07:10,001 --> 06:07:13,000 DID RELEASE AN AUDIO OF THE 8040 06:07:13,001 --> 06:07:15,000 PROCEEDINGS, WHICH WAS, I 8041 06:07:15,001 --> 06:07:17,000 BELIEVE -- I BELIEVE A NOVELTY 8042 06:07:17,001 --> 06:07:20,000 AT THAT TIME. 8043 06:07:20,001 --> 06:07:21,000 AND THEY HAVE DONE THAT 8044 06:07:21,001 --> 06:07:26,000 OCCASIONALLY SINCE. 8045 06:07:26,001 --> 06:07:27,000 BUT RELATIVELY RARELY. 8046 06:07:27,001 --> 06:07:29,000 RELATIVELY RARELY. 8047 06:07:29,001 --> 06:07:32,000 AND I'D LIKE UNANIMOUS CONSENT 8048 06:07:32,001 --> 06:07:35,000 TO INTRODUCE A TABLE PREPARED BY 8049 06:07:35,001 --> 06:07:38,000 C-SPAN SHOWING THE FREQUENCY 8050 06:07:38,001 --> 06:07:40,000 THAT THE SUPREME COURT HAS 8051 06:07:40,001 --> 06:07:43,000 DENIED EVEN AN AUDIO TO BE 8052 06:07:43,001 --> 06:07:45,000 RELEASED WITHIN A RELATIVELY 8053 06:07:45,001 --> 06:07:47,000 REASONABLE PERIOD OF TIME. 8054 06:07:47,001 --> 06:07:48,000 THE PRESIDING OFFICER: WITHOUT 8055 06:07:48,001 --> 06:07:49,000 OBJECTION. 8056 06:07:49,001 --> 06:07:51,000 MR. SPECTER: WELL, IN THE FACE 8057 06:07:51,001 --> 06:07:53,000 OF -- OF THESE 8058 06:07:53,001 --> 06:07:57,000 BEEN PRESSING FOR MORE THAN A 8059 06:07:57,001 --> 06:08:03,000 DECADE FOR LEGISLATION TO TELL 8060 06:08:03,001 --> 06:08:06,000 VIE SUPREM --TELEVISE THE SUPREME COURT. 8061 06:08:06,001 --> 06:08:08,000 IT HAS COME OUT OF THE JUDICIARY 8062 06:08:08,001 --> 06:08:11,000 COMMITTEE 12-6 AND MOST RECENTLY 8063 06:08:11,001 --> 06:08:12,000 THIS YEAR 12-6, A LEGISLATIVE 8064 06:08:12,001 --> 06:08:14,000 PROPOSAL THAT WOULD CALL FOR THE 8065 06:08:14,001 --> 06:08:16,000 SUPREME COURT TO BE TELEVISED 8066 06:08:16,001 --> 06:08:17,000 AND, SECONDLY, A SENSE OF THE 8067 06:08:17,001 --> 06:08:20,000 SENATE RESOLUTION URGING THE 8068 06:08:20,001 --> 06:08:23,000 SUPREME COURT ON ITS OWN TO -- 8069 06:08:23,001 --> 06:08:25,000 TO BE TELEVISED. 8070 06:08:25,001 --> 06:08:27,000 I BELIEVE, AS A LEGAL MATTER, 8071 06:08:27,001 --> 06:08:29,000 THAT THE CONGRESS HAS THE 8072 06:08:29,001 --> 06:08:31,000 AUTHORITY TO REQUIRE THE SUPREME 8073 06:08:31,001 --> 06:08:36,000 COURT TO BE TELEVISED. 8074 06:08:36,001 --> 06:08:37,000 AND I SAY THAT BECAUSE IT IS AN 8075 06:08:37,001 --> 06:08:39,000 ADMINISTRATIVE FUNCTION. 8076 06:08:39,001 --> 06:08:40,000 CONGRESS HAS THE AUTHORITY TO 8077 06:08:40,001 --> 06:08:42,000 DECIDE, FOR EXAMPLE, HOW MANY 8078 06:08:42,001 --> 06:08:45,000 JUSTICES THERE WILL BE ON THE 8079 06:08:45,001 --> 06:08:46,000 COURT ILLUSTRATED BY THE FAMOUS 8080 06:08:46,001 --> 06:08:48,000 ROOSEVELT COURT PACKING PLANT 8081 06:08:48,001 --> 06:08:51,000 WHERE THE EFFORT WAS MADE TO 8082 06:08:51,001 --> 06:08:54,000 RAISE THE NUMBER FROM NINE TO 15 8083 06:08:54,001 --> 06:08:55,000 THROUGH NEW FACES TO CONTROL THE 8084 06:08:55,001 --> 06:08:57,000 DECISION. 8085 06:08:57,001 --> 06:08:59,000 THE CONGRESS, BY LAW, 8086 06:08:59,001 --> 06:09:02,000 ESTABLISHES THE NUMBER OF 8087 06:09:02,001 --> 06:09:09,000 JUSTICES FOR A DECISION MAKING, 8088 06:09:09,001 --> 06:09:12,000 A PLURALITY, SIX MUST DECIDE THE CASE. 8089 06:09:12,001 --> 06:09:14,000 THE CONGRESS DECIDES THE COURT 8090 06:09:14,001 --> 06:09:15,000 WILL BE IN SESSION THE FIRST 8091 06:09:15,001 --> 06:09:19,000 MONDAY IN OOBER. 8092 06:09:19,001 --> 06:09:21,000 THE CONGRESS HAS SET THE TIME ON 8093 06:09:21,001 --> 06:09:22,000 THE HABEAS CORPUS ON THE SPEEDY 8094 06:09:22,001 --> 06:09:24,000 TRIAL ACT. 8095 06:09:24,001 --> 06:09:25,000 I THINK A STRONG CASE, AND, IN 8096 06:09:25,001 --> 06:09:26,000 FACT, THE APPROPRIATE CONCLUSION 8097 06:09:26,001 --> 06:09:31,000 IS THAT THE CONGRESS HAS 8098 06:09:31,001 --> 06:09:33,000 AUTHORITY TO ACT IN THIS FIELD. 8099 06:09:33,001 --> 06:09:34,000 THE SUPREME COURT PROCEEDINGS, 8100 06:09:34,001 --> 06:09:37,000 THE HIGHEST COURT PROCEEDINGS 8101 06:09:37,001 --> 06:09:38,000 ARE NOW TELEVISED IN GREAT 8102 06:09:38,001 --> 06:09:45,000 BRITAIN. 8103 06:09:45,001 --> 06:09:47,000 THEY'RE NOW TELEVISED IN IN CANADA. 8104 06:09:47,001 --> 06:09:50,000 THEY'RE NOW TELEVISED IN MANY 8105 06:09:50,001 --> 06:09:51,000 FEDERAL COURTS, WHICH HAS 8106 06:09:51,001 --> 06:09:54,000 UNDERTAKEN THEM ON A TRIAL BASIS. 8107 06:09:54,001 --> 06:09:55,000 A RECENT POLL WAS CONDUCTED 8108 06:09:55,001 --> 06:09:59,000 RELEASED ON THE DAY OF THE START 8109 06:09:59,001 --> 06:10:01,000 OF THE HEARINGS ON SOLICITOR 8110 06:10:01,001 --> 06:10:04,000 GENERAL KAGAN, A POLL CONDUCTED 8111 06:10:04,001 --> 06:10:06,000 BY C-SPAN, SHOWED THAT 63% OF 8112 06:10:06,001 --> 06:10:08,000 THE AMERICAN PEOPLE OUGHT TO 8113 06:10:08,001 --> 06:10:14,000 THINK THE COURT OUGHT TO BE TELEVISED. 8114 06:10:14,001 --> 06:10:16,000 AND AMONG THE 37% WHO SAID NO, 8115 06:10:16,001 --> 06:10:18,000 WHEN THEY WERE TOLD THAT THE 8116 06:10:18,001 --> 06:10:19,000 PROCEEDINGS ARE OPEN TO THE 8117 06:10:19,001 --> 06:10:23,000 PUBLIC, BUT PEOPLE HAVE TO COME 8118 06:10:23,001 --> 06:10:25,000 TO WASHINGTON TO SEE THEM AND 8119 06:10:25,001 --> 06:10:28,000 CAN ONLY STAY FOR THREE MINUTES, 8120 06:10:28,001 --> 06:10:30,000 MOST OF THOSE FOLKS DECIDED THAT 8121 06:10:30,001 --> 06:10:34,000 THEY OUGHT 8122 06:10:34,001 --> 06:10:35,000 SO THE NUMBER WENT FROM 63 TO 8123 06:10:35,001 --> 06:10:38,000 85% OF THE AMERICAN PEOPLE WHO 8124 06:10:38,001 --> 06:10:39,000 THINK THE SUPREME COURT OUGHT TO 8125 06:10:39,001 --> 06:10:42,000 BE TELEVISED. 8126 06:10:42,001 --> 06:10:44,000 SO I WOULD SAY TO MY COLLEAGUES 8127 06:10:44,001 --> 06:10:49,000 THAT THAT'S A PRETTY GOOD 8128 06:10:49,001 --> 06:10:50,000 SOCIATIOINDICATIONTHAT THEONGRESS OUGHT TO ACT. 8129 06:10:50,001 --> 06:10:52,000 THAT THE SUPREME COURT WILL NOT 8130 06:10:52,001 --> 06:10:54,000 OPEN ITS DOORS ON A VOLUNTARY 8131 06:10:54,001 --> 06:10:57,000 BASIS, THAT THE CONGRESS OUGHT 8132 06:10:57,001 --> 06:11:01,000 TO -- OUGHT TO RESPOND. 8133 06:11:01,001 --> 06:11:02,000 ON RECENT NOMINATIONS I HAVE 8134 06:11:02,001 --> 06:11:06,000 ASKED EVERY NOMINEE, WHAT IS 8135 06:11:06,001 --> 06:11:09,000 YOUR ATTITUDE ON TELEVISION? 8136 06:11:09,001 --> 06:11:11,000 AND I WAS PLEASED BOTH IN THE 8137 06:11:11,001 --> 06:11:15,000 INFORMAL MEETING WITH MS. KAGAN 8138 06:11:15,001 --> 06:11:16,000 THAT HER TESTIMONY BEFORE THE 8139 06:11:16,001 --> 06:11:18,000 JUDICIARY COMMITTEE THAT SHE 8140 06:11:18,001 --> 06:11:20,000 SAID SHE WAS IN FAVOR OF TELEVISION. 8141 06:11:20,001 --> 06:11:23,000 THAT THE MORE INFORMATION THE 8142 06:11:23,001 --> 06:11:25,000 PUBLIC HAS, THE BETTER OFF OUR 8143 06:11:25,001 --> 06:11:26,000 SOCIETY IS A PRETTY OBVIOUS 8144 06:11:26,001 --> 06:11:28,000 CONCLUSION, THAN SHE WOULD PRESS 8145 06:11:28,001 --> 06:11:31,000 THE ISSUE WHEN NOMINATED. 8146 06:11:31,001 --> 06:11:33,000 AND A KEY FACTOR IN MY 8147 06:11:33,001 --> 06:11:38,000 AFFIRMATIVE VOTE FOR MS. KAGAN 8148 06:11:38,001 --> 06:11:42,000 IS HER -- HER SENSE OF HUMOR, 8149 06:11:42,001 --> 06:11:44,000 HER -- HER QUICK WIT, WHICH SHE DISPLAYED. 8150 06:11:44,001 --> 06:11:45,000 SHE WAS EVEN ALMOST A MATCH FOR 8151 06:11:45,001 --> 06:11:48,000 THE DISTINGUISHED SENATOR 8152 06:11:48,001 --> 06:11:52,000 FROM -- JUNIOR SENATOR FROM 8153 06:11:52,001 --> 06:11:53,000 MINNESOTA WHO'S HAD SOME EXPERT 8154 06:11:53,001 --> 06:11:55,000 PERIENCE IN THAT LINE. 8155 06:11:55,001 --> 06:11:58,000 AND I THINK THAT WILL STAND HER 8156 06:11:58,001 --> 06:11:59,000 IN GOOD STEAD IN THAT 8157 06:11:59,001 --> 06:12:01,000 IDEALOGICAL BATTLE IN THAT SMALL 8158 06:12:01,001 --> 06:12:05,000 CONFERENCE ROOM WHERE THESE BIG, 8159 06:12:05,001 --> 06:12:06,000 BIG DECISIONS ARE MADE. 8160 06:12:06,001 --> 06:12:09,000 AND CHIEF JUSTICE ROBERTS SAID 8161 06:12:09,001 --> 06:12:10,000 THAT HE WOULD BE OPEN TO THE 8162 06:12:10,001 --> 06:12:12,000 IDEA. 8163 06:12:12,001 --> 06:12:15,000 JUSTICE SCALIA TESTIFIED THAT HE 8164 06:12:15,001 --> 06:12:17,000 VOTED FOR IT ON THE THIRD 8165 06:12:17,001 --> 06:12:18,000 CIRCUIT BUT WOULD WANT TO CONFER 8166 06:12:18,001 --> 06:12:20,000 WITH HIS COLLEAGUES. 8167 06:12:20,001 --> 06:12:23,000 I BELIEVE JUSTICE BREYER SAID 8168 06:12:23,001 --> 06:12:25,000 THAT A HEARING BEFORE -- IN THE 8169 06:12:25,001 --> 06:12:29,000 HOUSE OF REPRESENTATIVES A FEW 8170 06:12:29,001 --> 06:12:31,000 MONTHS AGO THAT TELEVISION WAS INEVITABLE. 8171 06:12:31,001 --> 06:12:34,000 JUSTICE GINSBURG WAS QUOTED AT 8172 06:12:34,001 --> 06:12:37,000 ONE POINT AS SAYING THAT IF IT 8173 06:12:37,001 --> 06:12:39,000 WAS GAVEL TO GAVEL THAT IT WOULD 8174 06:12:39,001 --> 06:12:41,000 BE SATISFACTORY. 8175 06:12:41,001 --> 06:12:43,000 JUSTICE SCALIA HAS BEEN NEGATIVE 8176 06:12:43,001 --> 06:12:48,000 ABOUT IT MOST OF THE TIME 8177 06:12:48,001 --> 06:12:59,000 BECAUSE THERE WOULD ONLY BE NI 8178 06:12:59,001 --> 06:13:01,000 NISNIPPETS IT COULD BE GAVEL TO 8179 06:13:01,001 --> 06:13:02,000 GAVEL THERE WOULD BE SOME FLEX 8180 06:13:02,001 --> 06:13:04,000 ABILITY ON HIS PART. 8181 06:13:04,001 --> 06:13:06,000 BUT I THINK IT IS AN ITEM WHOSE 8182 06:13:06,001 --> 06:13:08,000 TIME HAS COME. 8183 06:13:08,001 --> 06:13:10,000 BECAUSE INSTITUTIONALLY WE OUGHT 8184 06:13:10,001 --> 06:13:14,000 TO BE DOING SOMETHING ABOUT IT 8185 06:13:14,001 --> 06:13:17,000 IN THE UNITED STATES SENATE. 8186 06:13:17,001 --> 06:13:18,000 INSTITUTIONALLY WE HAVE THE 8187 06:13:18,001 --> 06:13:22,000 RESPONSIBLE TO CONFIRM. 8188 06:13:22,001 --> 06:13:24,000 AND WE AREN'T DOING A VERY GOOD 8189 06:13:24,001 --> 06:13:26,000 JOB OF FINDING OUT WHAT 8190 06:13:26,001 --> 06:13:28,000 REASONABLE UNDERSTANDING IS OF 8191 06:13:28,001 --> 06:13:29,000 WHERE THESE NOMINEES ARE 8192 06:13:29,001 --> 06:13:38,000 HEADING. 8193 06:13:38,001 --> 06:13:42,000 AND WHILE WE ARE FIDDLIN FIDDLING, OUR 8194 06:13:42,001 --> 06:13:46,000 INSTITUTIONAL POWER IS BURNING. 8195 06:13:46,001 --> 06:13:48,000 IT WON'T AMOUNT TO A TINGER'S 8196 06:13:48,001 --> 06:13:51,000 DAM WHEN THE SUPREME COURT 8197 06:13:51,001 --> 06:13:53,000 AGREES WITH OUR FACTUAL FINDING 8198 06:13:53,001 --> 06:13:56,000 NO MATTER HOW VOLUMINOUS IT WILL 8199 06:13:56,001 --> 06:13:57,000 BE AND WHAT GRAVITATES DOWN 8200 06:13:57,001 --> 06:13:59,000 PENNSYLVANIA TO THE WHITE HOUSE. 8201 06:13:59,001 --> 06:14:03,000 SO IT'S TIME TO SIT UP AND TAKE 8202 06:14:03,001 --> 06:14:06,000 NOTICE. 8203 06:14:06,001 --> 06:14:09,000 MS. KAGAN QUOTED ME IN HER 1995 8204 06:14:09,001 --> 06:14:11,000 LAW REVIEW ARTICLE SAYING THAT I 8205 06:14:11,001 --> 06:14:13,000 SAID THAT ONE DAY THE SENATE'S 8206 06:14:13,001 --> 06:14:16,000 GOING TO HAVE TO STAND UP ON ITS 8207 06:14:16,001 --> 06:14:18,000 REAR LEGS AND REJECT A NOMINEE. 8208 06:14:18,001 --> 06:14:20,000 WELL, NOW IS NOT THE RIGHT DAY 8209 06:14:20,001 --> 06:14:22,000 IN MY OPINION FOR THE REASONS I 8210 06:14:22,001 --> 06:14:26,000 HAVE SAID. 8211 06:14:26,001 --> 06:14:28,000 ONE OTHER POINT I WANT TO MAKE, 8212 06:14:28,001 --> 06:14:29,000 AND I WOULD ASK HOW MUCH TIME I 8213 06:14:29,001 --> 06:14:31,000 HAVE LEFT, MR. PRESIDENT, BUT I 8214 06:14:31,001 --> 06:14:34,000 THINK A MORE APPROPRIATE 8215 06:14:34,001 --> 06:14:35,000 QUESTION IS HOW MUCH TIME HAVE I GONE OVER? 8216 06:14:35,001 --> 06:14:37,000 THE PRESIDING OFFICER: THE 8217 06:14:37,001 --> 06:14:39,000 SENATOR HAS CONSUMED HIS TIME. 8218 06:14:39,001 --> 06:14:41,000 MR. SPECTER: WELL, WHAT'S THE 8219 06:14:41,001 --> 06:14:43,000 ANSWER TO MY QUESTION, MR. PRESIDENT? 8220 06:14:43,001 --> 06:14:44,000 TH 8221 06:14:44,001 --> 06:14:45,000 MINUTES. 8222 06:14:45,001 --> 06:14:46,000 EXTRA. 8223 06:14:46,001 --> 06:14:47,000 MR. SPECTER: EXTRA? 8224 06:14:47,001 --> 06:14:49,000 THE PRESIDING OFFICER: YES. 8225 06:14:49,001 --> 06:14:50,000 MR. SPECTER: I ASK CONSENT FOR FOUR MORE MINUTES. 8226 06:14:50,001 --> 06:14:51,000 THE PRESIDING OFFICER: WITHOUT 8227 06:14:51,001 --> 06:14:54,000 OBJECTION. 8228 06:14:54,001 --> 06:14:57,000 MR. SPECTER: ONLY ONE COLLEAGUE 8229 06:14:57,001 --> 06:15:00,000 IS PRESENT AND IT'S THE 8230 06:15:00,001 --> 06:15:01,000 CONGENIAL JUNIOR SENATOR FROM 8231 06:15:01,001 --> 06:15:02,000 FLORIDA, SO I THANK MY 8232 06:15:02,001 --> 06:15:03,000 COLLEAGUE. 8233 06:15:03,001 --> 06:15:06,000 I WANT TO MAKE ONE MORE POINT 8234 06:15:06,001 --> 06:15:10,000 AND THAT IS ON THE ISSUE OF THE 8235 06:15:10,001 --> 06:15:13,000 SUPREME COURT TAKING MORE CASES. 8236 06:15:13,001 --> 06:15:16,000 HERE AGAIN IF THERE WAS 8237 06:15:16,001 --> 06:15:18,000 TRANSPARENCY, AMERICA WOULD BE 8238 06:15:18,001 --> 06:15:21,000 OUTRAGED AT THE WORKLOAD ON THE 8239 06:15:21,001 --> 06:15:22,000 SUPREME COURT. 8240 06:15:22,001 --> 06:15:24,000 AS THAT COURT HAS MOVE FROM ONE 8241 06:15:24,001 --> 06:15:26,000 CLERK TO TWO CLERKS TO THREE 8242 06:15:26,001 --> 06:15:28,000 CLERKS TO FOUR CLERKS. 8243 06:15:28,001 --> 06:15:32,000 AND AS THE SUPREME COURT -- AND 8244 06:15:32,001 --> 06:15:34,000 I DON'T BEGRUDGE THEM THE TIME 8245 06:15:34,001 --> 06:15:37,000 BETWEEN THE SESSION ENDING IN 8246 06:15:37,001 --> 06:15:40,000 LATE JUNE AND THE FIRST MONDAY 8247 06:15:40,001 --> 06:15:42,000 IN OCTOBER WHERE THEY TRAVEL AND 8248 06:15:42,001 --> 06:15:46,000 LECTURE AND WRITE BOOKS. 8249 06:15:46,001 --> 06:15:47,000 BUT I AMUCH CONCERNED ABOUT 8250 06:15:47,001 --> 06:15:51,000 THE CIRCUIT SPLITS FOR ANYONE 8251 06:15:51,001 --> 06:15:54,000 WHO MAY BE WATCHING ON C-SPAN2, 8252 06:15:54,001 --> 06:15:56,000 AND I KNOW MY AUNT AND SISTER 8253 06:15:56,001 --> 06:16:00,000 ARE WATCHING. 8254 06:16:00,001 --> 06:16:02,000 THESE CASES ARE VERY IMPORTANT 8255 06:16:02,001 --> 06:16:05,000 BECAUSE IF THE THIRD CIRCUIT 8256 06:16:05,001 --> 06:16:08,000 HAVING PENNSYLVANIA, NEW JERSEY, 8257 06:16:08,001 --> 06:16:10,000 AND DELAWARE DECIDE A CASE ONE 8258 06:16:10,001 --> 06:16:12,000 WAY, AND THE NINTH CIRCUIT 8259 06:16:12,001 --> 06:16:13,000 GOVERNING CALIFORNIA AND THE 8260 06:16:13,001 --> 06:16:15,000 WESTERN STATES DECIDES IT 8261 06:16:15,001 --> 06:16:19,000 ANOTHER WAY AND THE CASE ARISES 8262 06:16:19,001 --> 06:16:21,000 IN WICHITA, KANSAS, NOBODY KNOWS 8263 06:16:21,001 --> 06:16:23,000 WHICH PRECEDENT TO FOLLOW 8264 06:16:23,001 --> 06:16:26,000 BECAUSE THE CIRCUITS ARE 8265 06:16:26,001 --> 06:16:27,000 AUTONOMOUS. 8266 06:16:27,001 --> 06:16:28,000 AND THERE ARE MANY, MY 8267 06:16:28,001 --> 06:16:30,000 IMPORTANT CASES WHICH THE 8268 06:16:30,001 --> 06:16:32,000 SUPREME COURT DOES NOT DECIDE 8269 06:16:32,001 --> 06:16:34,000 WHEN THERE ARE CIRCUITS SPLIT, 8270 06:16:34,001 --> 06:16:36,000 SO THEY HAVE TIME TO DECIDE THEM. 8271 06:16:36,001 --> 06:16:38,000 THEY HAVE TIME TO DECIDE THE 8272 06:16:38,001 --> 06:16:39,000 CONFLICT BETWEEN THE FOREIGN 8273 06:16:39,001 --> 06:16:42,000 INTELLIGENCE SURVEILLANCE ACT 8274 06:16:42,001 --> 06:16:43,000 AND THE TERRORIST SURVEILLANCE 8275 06:16:43,001 --> 06:16:46,000 PROGRAM, AND THEY HAVE TIME TO 8276 06:16:46,001 --> 06:16:48,000 HEAR THE CASE INVOLVING THE 9/11 8277 06:16:48,001 --> 06:16:49,000 CRASH AND SOVEREIGN IMMUNITY. 8278 06:16:49,001 --> 06:16:53,000 BUT THESE ARE THE STATISTICS 8279 06:16:53,001 --> 06:16:59,000 WHICH WERE VERY INFORMATIVE. 8280 06:16:59,001 --> 06:17:02,000 IN 1886, THE SUPREME COURT 8281 06:17:02,001 --> 06:17:08,000 DECIDED 451 CASES. 8282 06:17:08,001 --> 06:17:10,000 IN 1987, THE SUPREME COURT WROTE 8283 06:17:10,001 --> 06:17:15,000 146 OPINIONS. 8284 06:17:15,001 --> 06:17:18,000 THAT WAS CUT BY LESS THAN HALF 8285 06:17:18,001 --> 06:17:24,000 FROM 2006 -- IN 2006 TO 68, 2007 8286 06:17:24,001 --> 06:17:25,000 TO 67, 2008 TO 75, 2009 TO 73. 8287 06:17:25,001 --> 06:17:29,000 THIS IN THE FACE OF CHIEF 8288 06:17:29,001 --> 06:17:30,000 JUSTICE ROBERTS' TESTIMONY AT 8289 06:17:30,001 --> 06:17:32,000 HIS CONFIRMATION HEARING THAT 8290 06:17:32,001 --> 06:17:36,000 THE SUPREME COURT OUGHT TO HEAR 8291 06:17:36,001 --> 06:17:37,000 MORE CASES. 8292 06:17:37,001 --> 06:17:38,000 MS. KAGAN SAID ABOUT THE SAME 8293 06:17:38,001 --> 06:17:40,000 THING. 8294 06:17:40,001 --> 06:17:43,000 MY RECOLLECTION IS THAT JUSTICE 8295 06:17:43,001 --> 06:17:45,000 SOTOMAYOR SAID ABOUT THE SAME THING. 8296 06:17:45,001 --> 06:17:51,000 SO HERE AGAIN, IT IS A MATTER OF 8297 06:17:51,001 --> 06:17:53,000 THE -- OF THE PUBLIC UNDERSTANDING. 8298 06:17:53,001 --> 06:17:56,000 WE'RE VERY CONSCIOUS IN THIS 8299 06:17:56,001 --> 06:17:58,000 BODY ABOUT NOT MISSING VOTES. 8300 06:17:58,001 --> 06:18:01,000 WHEN WE MISS VOTES -- WHEN I 8301 06:18:01,001 --> 06:18:05,000 MISS VOTES, IT APPEARS IN ""THE 8302 06:18:05,001 --> 06:18:07,000 PHILADELPHIA INQUIRER ""AND "THE 8303 06:18:07,001 --> 06:18:09,000 PITTSBURGH POST GAZETTE." 8304 06:18:09,001 --> 06:18:10,000 E PUBLI DOESN'T LIKE TO SEE 8305 06:18:10,001 --> 06:18:11,000 ARLEN SPECTER MISSING VOTES. 8306 06:18:11,001 --> 06:18:13,000 I'M PAID TO VOTE. 8307 06:18:13,001 --> 06:18:14,000 WELL, YOU CAN'T VOTE ON A CASE 8308 06:18:14,001 --> 06:18:16,000 IF YOU DON'T TAKE A CASE. 8309 06:18:16,001 --> 06:18:18,000 HAVING THE DISCRETION NOT TO 8310 06:18:18,001 --> 06:18:23,000 TAKE THE CASES LEAVES THIS LEVEL 8311 06:18:23,001 --> 06:18:24,000 OF WORKLOAD WITH CIRCUITS 8312 06:18:24,001 --> 06:18:25,000 UNDECIDED. 8313 06:18:25,001 --> 06:18:26,000 AND THIS IS SOMETHING WHICH 8314 06:18:26,001 --> 06:18:29,000 OUGHT TO BE HANDLED. 8315 06:18:29,001 --> 06:18:30,000 I HAVE LEGISLATION PENDING TO 8316 06:18:30,001 --> 06:18:32,000 COMPEL THE SUPREME COURT TO 8317 06:18:32,001 --> 06:18:33,000 TAKE, FOR EXAMPLE, THE TERRORIST 8318 06:18:33,001 --> 06:18:35,000 SURVEILLANCE PROGRAM. 8319 06:18:35,001 --> 06:18:37,000 MOST PEOPLE DON'T KNOW, BUT 8320 06:18:37,001 --> 06:18:39,000 CONGRESS CAN'T DECIDE CASES FOR 8321 06:18:39,001 --> 06:18:41,000 THE COURT, BUT CONGRESS CAN 8322 06:18:41,001 --> 06:18:43,000 MANDATE WHAT CASES THEY TAKE. 8323 06:18:43,001 --> 06:18:45,000 AS WE DID THE FLAG BURNING CASE, 8324 06:18:45,001 --> 06:18:47,000 AS WE DID McCAIN-FEINGOLD AND 8325 06:18:47,001 --> 06:18:51,000 MANY, MANY OTHER CASES. 8326 06:18:51,001 --> 06:18:53,000 SO IT IS MY HOPE THAT WHEN WE 8327 06:18:53,001 --> 06:18:55,000 CONFIRM MS. KAGAN -- AND IT 8328 06:18:55,001 --> 06:18:58,000 LOOKS LIKE WE WILL CONFIRM 8329 06:18:58,001 --> 06:19:01,000 HER -- THAT WE WILL PAUSE ON THE 8330 06:19:01,001 --> 06:19:05,000 NOMINATION PROCEEDINGS AND FOCUS 8331 06:19:05,001 --> 06:19:07,000 ON THEIR UTILITY, IF NOT TO GET 8332 06:19:07,001 --> 06:19:12,000 SUBSTANTIVE ANSWERS, TO SEE WHAT 8333 06:19:12,001 --> 06:19:13,000 THE DEXTERITY, THE INTELLECTUAL 8334 06:19:13,001 --> 06:19:14,000 DEXTERITY OF THE NOMINEE IS, BUT 8335 06:19:14,001 --> 06:19:16,000 PROVIDING AN OPPORTUNITY TO 8336 06:19:16,001 --> 06:19:18,000 REVIEW WHAT THE COURT IS DOING, 8337 06:19:18,001 --> 06:19:20,000 WE HAVE TO BONE UP ON WHAT 8338 06:19:20,001 --> 06:19:22,000 HAPPENS SINCE THE LAST 8339 06:19:22,001 --> 06:19:27,000 NOMINATION PROCEEDING, AND I 8340 06:19:27,001 --> 06:19:28,000 THINK THE RECORD IS OPEN TO 8341 06:19:28,001 --> 06:19:29,000 SUBSTANTIAL QUESTION. 8342 06:19:29,001 --> 06:19:31,000 I THINK THOSE 8343 06:19:31,001 --> 06:19:34,000 ANSWERED FOR THE REASONS I HAVE 8344 06:19:34,001 --> 06:19:37,000 GIVEN IF WE MOVED AHEAD WITH TELEVISION. 8345 06:19:37,001 --> 06:19:38,000 MR. PRESIDENT, IN CONCLUSION, I 8346 06:19:38,001 --> 06:19:49,000 ASK UNANIMOUS CONSENT THAT A 8347 06:19:49,001 --> 06:19:50,000 FULL COPY OF THE TEXT OF MY 8348 06:19:50,001 --> 06:19:51,000 STATEMENT, MY WRITTEN STATEMENT 8349 06:19:51,001 --> 06:19:54,000 BE INCLUDED IN THE RECORD WITH 8350 06:19:54,001 --> 06:19:55,000 THESE EXACT WORDS SO PEOPLE WILL 8351 06:19:55,001 --> 06:19:58,000 UNDERSTAND THAT WHAT I HAVE SAID 8352 06:19:58,001 --> 06:20:01,000 UP UNTIL NOW IS REPEATED TO SOME 8353 06:20:01,001 --> 06:20:02,000 EXTENT IN THE NORMAL WRITTEN STATEMENT. 8354 06:20:02,001 --> 06:20:03,000 THE PRESIDING OFFICER: WITHOUT 8355 06:20:03,001 --> 06:20:06,000 OBJECTION. 8356 06:20:06,001 --> 06:20:12,000 MR. SPECTER: AND I ASK CONSENT 8357 06:20:12,001 --> 06:20:13,000 AT TWO LETTERS WHICH I WROTE 8358 06:20:13,001 --> 06:20:16,000 TO CHIEF JUSTICE ROBERTS IN 8359 06:20:16,001 --> 06:20:17,000 ANTICIPATION OF HIS NOMINATING 8360 06:20:17,001 --> 06:20:19,000 PROCEEDING, THREE LETTERS I 8361 06:20:19,001 --> 06:20:23,000 WROTE TO JUSTICE ALITO, TWO 8362 06:20:23,001 --> 06:20:26,000 LETTERS I WROTE TO JUSTICE 8363 06:20:26,001 --> 06:20:29,000 SOTOMAYOR AND THREE LETTERS I 8364 06:20:29,001 --> 06:20:30,000 WROTE TO MS. KAGAN BE INCLUDED 8365 06:20:30,001 --> 06:20:31,000 IN THE RECORD. 8366 06:20:31,001 --> 06:20:33,000 THE PRESIDING OFFICER: WITHOUT 8367 06:20:33,001 --> 06:20:35,000 OBJECTION. 8368 06:20:35,001 --> 06:20:36,000 MR. SPECTER: ALTHOUGH 8369 06:20:36,001 --> 06:20:37,000 CUMBERSOME, I THINK IT IS 8370 06:20:37,001 --> 06:20:39,000 IMPORTANT TO SEE THE CONTRAST 8371 06:20:39,001 --> 06:20:41,000 BETWEEN WHAT CHIEF ROBERTS 8372 06:20:41,001 --> 06:20:43,000 TESTIFIED TO AND WHAT HE SAID IN 8373 06:20:43,001 --> 06:20:46,000 HIS CONCURRING OPINION IN THE 8374 06:20:46,001 --> 06:20:49,000 CITIZENS UNITED CASE, THAT 28 OF 8375 06:20:49,001 --> 06:20:51,000 MY 30 MINUTES WERE CONSUMED ON 8376 06:20:51,001 --> 06:20:53,000 STARE DECIS, THAT THAT RECORD 8377 06:20:53,001 --> 06:20:55,000 OF THE HEARING BE INCLUDED WITH 8378 06:20:55,001 --> 06:20:56,000 THE CONCURRING OPINION IN THE 8379 06:20:56,001 --> 06:20:57,000 CITIZENS UNITED. 8380 06:20:57,001 --> 06:20:58,000 THE PRESIDING OFFICER: WITHOUT 8381 06:20:58,001 --> 06:20:59,000 OBJECTION. 8382 06:20:59,001 --> 06:21:01,000 MR. SPECTER: AND FINALLY, A COPY 8383 06:21:01,001 --> 06:21:03,000 OF AN ARTICLE WHICH I WROTE 8384 06:21:03,001 --> 06:21:04,000 WHICH APPEARS IN THE "USA TODAY." 8385 06:21:04,001 --> 06:21:05,000 THE PRESIDING OFFICER: WITHOUT 8386 06:21:05,001 --> 06:21:07,000 OBJECTION. 8387 06:21:07,001 --> 06:21:10,000 MR. SPECTER: AND I ASK CONSENT 8388 06:21:10,001 --> 06:21:13,000 THAT PRIVILEGES BE GIVEN TO 8389 06:21:13,001 --> 06:21:14,000 LINDA HOFFA, A DETAILEE IN MY 8390 06:21:14,001 --> 06:21:15,000 OFFICE FOR THE REMAINDER OF THE 8391 06:21:15,001 --> 06:21:16,000 CONGRESS. 8392 06:21:16,001 --> 06:21:18,000 THE PRESIDING OFFICER: WITHOUT OBJECTION. 8393 06:21:18,001 --> 06:21:19,000 MR. SPECTER: I THANK THE CHAIR 8394 06:21:19,001 --> 06:21:21,000 AND I THANK MY DISTINGUISHED 8395 06:21:21,001 --> 06:21:22,000 COLLEAGUE FROM FLORIDA. 8396 06:21:22,001 --> 06:21:25,000 . LeMIEUX: MR. PRESIDENT? THE PRESIDING OFFICER: THE 8397 06:21:25,001 --> 06:21:27,000 SENATOR FROM FLORIDA. 8398 06:21:27,001 --> 06:21:29,000 MR. LeMIEUX: ALWAYS GOOD TO 8399 06:21:29,001 --> 06:21:30,000 FOLLOW MY DISTINGUISHED 8400 06:21:30,001 --> 06:21:32,000 COLLEAGUE FROM PENNSYLVANIA AND 8401 06:21:32,001 --> 06:21:33,000 HEAR HIS COMMENTS. 8402 06:21:33,001 --> 06:21:35,000 HERE TO TALK ABOUT THE BILL THAT 8403 06:21:35,001 --> 06:21:36,000 THE SENATE JUST VOTED ON AND 8404 06:21:36,001 --> 06:21:37,000 PASSED, THE FINANCIAL REGULATION 8405 06:21:37,001 --> 06:21:38,000 OVERHAUL BILL. 8406 06:21:38,001 --> 06:21:40,000 IT IS, MR. PRESIDENT, IN MY MIND 8407 06:21:40,001 --> 06:21:42,000 A MISSED OPPORTUNITY. 8408 06:21:42,001 --> 06:21:45,000 WE HAD THE OPPORTUNITY TO TRULY 8409 06:21:45,001 --> 06:21:47,000 ADDRESS THE CAUSES OF THE 8410 06:21:47,001 --> 06:21:48,000 FINANCIAL MELOWN AND PUT INTO 8411 06:21:48,001 --> 06:21:51,000 PLACE MEASURES THAT WOULD STOP 8412 06:21:51,001 --> 06:21:54,000 THE MELTDOWN FROM HAPPENING THE 8413 06:21:54,001 --> 06:21:56,000 NEXT TIME, BUT UNFORTUNATELY, AS 8414 06:21:56,001 --> 06:21:57,000 I HAVE SEEN HERE IN ABOUT A 8415 06:21:57,001 --> 06:21:59,000 YEAR'S TIME THAT I HAVE HAD THE 8416 06:21:59,001 --> 06:22:00,000 PRIVILEGE TO SERVE IN THE UNITED 8417 06:22:00,001 --> 06:22:01,000 STATES SENATE, IT SEEMS THAT 8418 06:22:01,001 --> 06:22:04,000 IT'S THE PREDILECTION OF THIS 8419 06:22:04,001 --> 06:22:07,000 CONGRESS TO TAKE A CRISIS AND 8420 06:22:07,001 --> 06:22:09,000 THEN COME FORWARD, NOT WITH A 8421 06:22:09,001 --> 06:22:12,000 NARROWLY FOCUSED AND TAILORED 8422 06:22:12,001 --> 06:22:13,000 SOLUTION, BUT INSTEAD A 8423 06:22:13,001 --> 06:22:15,000 LARGE-RANGING COMPREHENSIVE BILL 8424 06:22:15,001 --> 06:22:17,000 THAT CREATES MORE GOVERNMENT, 8425 06:22:17,001 --> 06:22:18,000 THAT CREATES MORE BUREAUCRACY, 8426 06:22:18,001 --> 06:22:20,000 THAT PUTS MORE DEBT O OUR 8427 06:22:20,001 --> 06:22:22,000 SYSTEM OF GOVERNMENT AND STILL 8428 06:22:22,001 --> 06:22:23,000 FAILS TO ADDRESS THE VERY 8429 06:22:23,001 --> 06:22:25,000 PROBLEMS THA WE SHOULD BE 8430 06:22:25,001 --> 06:22:27,000 TRYING TO FOCUS UPON. 8431 06:22:27,001 --> 06:22:30,000 WE WERE SUPPOSED TO REIN IN THE 8432 06:22:30,001 --> 06:22:33,000 WILD AND RISKY SPECULATIVE TOOLS 8433 06:22:33,001 --> 06:22:34,000 AND EMPOWER OUR REGULATORS TO 8434 06:22:34,001 --> 06:22:36,000 PREVENT ANOTHER CRISIS, BUT WE 8435 06:22:36,001 --> 06:22:38,000 DID NOT, AND I HEARD SENATOR 8436 06:22:38,001 --> 06:22:40,000 DODD, WHO I HAVE ENORMOUS 8437 06:22:40,001 --> 06:22:41,000 RESPECT FOR AND I THINK THAT HE 8438 06:22:41,001 --> 06:22:43,000 PUT A TREMENDOUS AMOUNT OF TIME 8439 06:22:43,001 --> 06:22:44,000 INTO THIS BILL, BUT I HEARD HIM 8440 06:22:44,001 --> 06:22:46,000 ON THE FLOOR THE OTHER DAY AND 8441 06:22:46,001 --> 06:22:48,000 GIVING HIS SORT OF SUMMATION AS 8442 06:22:48,001 --> 06:22:50,000 TO WHY THIS BILL SHOULD BE 8443 06:22:50,001 --> 06:22:53,000 PASSED, SAY THAT THIS WILL NOT 8444 06:22:53,001 --> 06:22:55,000 STOP ANY FUTURE RECESSIONS, AND HE'S RIGHT. 8445 06:22:55,001 --> 06:22:57,000 HE'S RIGHT BECAUSE WE DIDN'T DO 8446 06:22:57,001 --> 06:22:59,000 WHAT WE NEEDED TO DO IN ORDER TO 8447 06:22:59,001 --> 06:23:02,000 TRULY FIX THE PROBLEMS THAT 8448 06:23:02,001 --> 06:23:04,000 HAPPENED 8449 06:23:04,001 --> 06:23:06,000 ERA WHEN WE HAD THIS TREMENDOUS 8450 06:23:06,001 --> 06:23:07,000 FINANCIAL MELTDOWN, THIS 8451 06:23:07,001 --> 06:23:09,000 MELTDOWN WHICH HAS DEPLETED 8452 06:23:09,001 --> 06:23:10,000 TRILLIONS OF DOLLARS OF NET 8453 06:23:10,001 --> 06:23:12,000 WORTH OF AMERICANS, THIS 8454 06:23:12,001 --> 06:23:15,000 MELTDOWN THAT HAS LED TO ONE OF 8455 06:23:15,001 --> 06:23:17,000 THE GREATEST -- IF NOT GREATEST 8456 06:23:17,001 --> 06:23:19,000 RECESSION SINCE THE GREAT DEPRESSION. 8457 06:23:19,001 --> 06:23:21,000 IN MY HOME STATE OF FLORIDA, 8458 06:23:21,001 --> 06:23:23,000 PEOPLE ARE SUFFERING MIGHTILY. 8459 06:23:23,001 --> 06:23:26,000 WE HAVE NEARLY 12% UNEMPLOYMEN 8460 06:23:26,001 --> 06:23:27,000 WE 8461 06:23:27,001 --> 06:23:29,000 DEPENDING UPON THE MONTH, IN 8462 06:23:29,001 --> 06:23:30,000 MORTGAGE FORECLOSURES, AND OUR 8463 06:23:30,001 --> 06:23:31,000 PEOPLE ARE BEHIND ON THEIR 8464 06:23:31,001 --> 06:23:34,000 MORTGAGE PAYMENTS MORE THAN ANY 8465 06:23:34,001 --> 06:23:37,000 OTHER STATE IN THE UNION. 8466 06:23:37,001 --> 06:23:39,000 WE ARE A STATE THAT HAS BEEN 8467 06:23:39,001 --> 06:23:41,000 BASED PERHAPS TOO MUCH ON 8468 06:23:41,001 --> 06:23:43,000 GROWTH, SO WHEN FOLKS ARE NOT 8469 06:23:43,001 --> 06:23:44,000 COMING TO BUILD A NEW HOME, THE 8470 06:23:44,001 --> 06:23:47,000 CONTRACTOR DOESN'T HAVE A JOB. 8471 06:23:47,001 --> 06:23:49,000 WHEN FOLKS ARE NOT COMING TO 8472 06:23:49,001 --> 06:23:50,000 VISIT OUR BEACHES OR OUR TOURIST 8473 06:23:50,001 --> 06:23:53,000 ATTRACTIONS, THE RESTAURANTEUR, 8474 06:23:53,001 --> 06:23:54,000 THE HOTELLIER, THEY LOSE THEIR 8475 06:23:54,001 --> 06:23:56,000 WORK. 8476 06:23:56,001 --> 06:23:58,000 SO THINGS ARE VERY DIFFICULT IN 8477 06:23:58,001 --> 06:23:59,000 FLORIDA, AND THIS FINANCIAL 8478 06:23:59,001 --> 06:24:02,000 CRIS STEMMED IN PART BECAUSE 8479 06:24:02,001 --> 06:24:04,000 OF SOME OF THE PROBLEMS THAT WE 8480 06:24:04,001 --> 06:24:05,000 SAW IN LENDING, IN REAL ESTATE, 8481 06:24:05,001 --> 06:24:07,000 AND THERE WAS NO PLACE THAT WAS 8482 06:24:07,001 --> 06:24:09,000 ANY WORSE THAN WHAT HAPPENED IN 8483 06:24:09,001 --> 06:24:10,000 FLORIDA, AND WHAT THIS BILL 8484 06:24:10,001 --> 06:24:11,000 FAILS TO ADDRESS, THE 8485 06:24:11,001 --> 06:24:13,000 UNDERWRITING STANDARDS THAT 8486 06:24:13,001 --> 06:24:16,000 SHOULD HAVE BEEN IN PLACE TO 8487 06:24:16,001 --> 06:24:17,000 STOP THESE SO-CALLED NINJA 8488 06:24:17,001 --> 06:24:18,000 LOANS. 8489 06:24:18,001 --> 06:24:21,000 NO INCOME, NO JOB. 8490 06:24:21,001 --> 06:24:24,000 THEY CALLED THEM NINJA LOANS. 8491 06:24:24,001 --> 06:24:26,000 ANYBODYOULD GET ONE, AND 8492 06:24:26,001 --> 06:24:27,000 PEOPLE WERE PUT INTO HOMES THEY 8493 06:24:27,001 --> 06:24:29,000 COULD NOT AFFORD. 8494 06:24:29,001 --> 06:24:30,000 WHY DID THAT HAPPEN? 8495 06:24:30,001 --> 06:24:31,000 BECAUSE THERE WAS NO 8496 06:24:31,001 --> 06:24:32,000 UNDERWRITING STANDARDS, THERE 8497 06:24:32,001 --> 06:24:33,000 WAS NO SKIN IN THE GAME FOR 8498 06:24:33,001 --> 06:24:34,000 THOSE GETTING MORTGAGE, THERE 8499 06:24:34,001 --> 06:24:36,000 WAS NO SKIN IN THE GAME FOR THE 8500 06:24:36,001 --> 06:24:37,000 MORTGAGE BROKER WHO WAS ABLE TO 8501 06:24:37,001 --> 06:24:38,000 SELL OFF THIS MORTGAGE TO WALL 8502 06:24:38,001 --> 06:24:39,000 STREET. 8503 06:24:39,001 --> 06:24:41,000 WHERE THERE WAS THIS VAST AND 8504 06:24:41,001 --> 06:24:43,000 GREAT DEMAND TO BUNDLE THESE 8505 06:24:43,001 --> 06:24:45,000 PRODUCTS INTO MORTGAGE-BACKED 8506 06:24:45,001 --> 06:24:48,000 SECURITIES, AND FOR THE FIRST 8507 06:24:48,001 --> 06:24:50,000 TIME EVER TIE OUR REAL ESTATE 8508 06:24:50,001 --> 06:24:52,000 MARKET, OUR HOMES, OUR MOST 8509 06:24:52,001 --> 06:24:53,000 IMPORTANT INVESTMENTS WITH THE 8510 06:24:53,001 --> 06:24:56,000 FINANCIAL 8511 06:24:56,001 --> 06:24:58,000 AS SOON AS THAT WAS DONE, THE 8512 06:24:58,001 --> 06:25:00,000 SPECULATION AND THE SPECULATORS 8513 06:25:00,001 --> 06:25:02,000 RAN WILD, AND THIS BILL DOESN'T 8514 06:25:02,001 --> 06:25:04,000 DO ENOUGH TO PREVENT THAT IN THE 8515 06:25:04,001 --> 06:25:06,000 FUTURE, TO PROVIDE THE REAL SKIN 8516 06:25:06,001 --> 06:25:07,000 IN THE GAME THAT SHOULD BE 8517 06:25:07,001 --> 06:25:08,000 NEEDED TO TRADE THOSE 8518 06:25:08,001 --> 06:25:10,000 MORTGAGE-BACKED SECURITIES. 8519 06:25:10,001 --> 06:25:11,000 WE FAILED TO ADDRESS THOSE TWO 8520 06:25:11,001 --> 06:25:14,000 FACTORS. 8521 06:25:14,001 --> 06:25:16,000 PERHAPS EVEN WORSE, WE FAILED TO 8522 06:25:16,001 --> 06:25:18,000 ADDRESS FANNIE AND FREDDIE, THE 8523 06:25:18,001 --> 06:25:20,000 GOVERNMENT-SPONSORED ENTITIES 8524 06:25:20,001 --> 06:25:23,000 THAT STOOD AS SILENT GUARANTEORS 8525 06:25:23,001 --> 06:25:25,000 TO ALL THESE -- GUARANTORS TO 8526 06:25:25,001 --> 06:25:27,000 ALL THESE MORTGAGES, TO LET THEM 8527 06:25:27,001 --> 06:25:29,000 HAVE THE FAITH AND CONFIDENCE 8528 06:25:29,001 --> 06:25:30,000 THAT THE GOVERNMENT WAS THE 8529 06:25:30,001 --> 06:25:32,000 BACKSTOP TO THESE MORTGAGES THAT 8530 06:25:32,001 --> 06:25:33,000 SHOULD NEVER HAVE BEEN LET. 8531 06:25:33,001 --> 06:25:35,000 THIS BILL FAILS TO ADDRESS IT. 8532 06:25:35,001 --> 06:25:37,000 TWO OF THE LEADING CAUSES OF THE 8533 06:25:37,001 --> 06:25:38,000 FINANCIAL DEBACLE FAILED TO 8534 06:25:38,001 --> 06:25:40,000 ADDRESS. 8535 06:25:40,001 --> 06:25:43,000 FINALLY, A POINT THAT WE NEEDED 8536 06:25:43,001 --> 06:25:45,000 TO ADDRESS AND WE DID, AND MY 8537 06:25:45,001 --> 06:25:46,000 COLLEAGUE AND FRIEND WHO 8538 06:25:46,001 --> 06:25:48,000 PRESIDES OVER THE SENATE THIS 8539 06:25:48,001 --> 06:25:49,000 AFTERNOON WAS A PERSON WHO WAS A 8540 06:25:49,001 --> 06:25:51,000 LEADING PROPONENT ON TRYING TO 8541 06:25:51,001 --> 06:25:53,000 DO SOMETHING ABOUT THE RATING 8542 06:25:53,001 --> 06:25:55,000 AGENCIES, AND WE DID DO 8543 06:25:55,001 --> 06:25:56,000 SOMETHING AND I WAS PLEASED TO 8544 06:25:56,001 --> 06:25:59,000 WORK WITH SENATOR CANTWELL AND I 8545 06:25:59,001 --> 06:26:00,000 WAS APPRECIATIVE OF THE EFFORTS 8546 06:26:00,001 --> 06:26:02,000 OF SENATOR FRANKEN TO TRY TO DO 8547 06:26:02,001 --> 06:26:03,000 SOMETHING ABOUT THESE RATING 8548 06:26:03,001 --> 06:26:05,000 AGENCIES, AND WE DID, AND THAT 8549 06:26:05,001 --> 06:26:06,000 IS ONE GOOD THING ABOUT THIS BILL. 8550 06:26:06,001 --> 06:26:08,000 THEY ARE WRITTEN OUT OF LAW. 8551 06:26:08,001 --> 06:26:09,000 THESE RATING AGENCIES COMPOUNDED 8552 06:26:09,001 --> 06:26:11,000 THE PROBLEM BECAUSE WHEN THESE 8553 06:26:11,001 --> 06:26:13,000 MORTGAGES PACKED TOGETHER, 8554 06:26:13,001 --> 06:26:14,000 MORTGAGES THAT WEREN'T ANY GOOD, 8555 06:26:14,001 --> 06:26:16,000 THAT WEREN'T GOING TO GET PAID, 8556 06:26:16,001 --> 06:26:18,000 THAT THEN GOT TURNED INTO A 8557 06:26:18,001 --> 06:26:19,000 TRADING VEHICLE, WENT UP TO WALL 8558 06:26:19,001 --> 06:26:21,000 STREET, THESE RATING AGENCIES 8559 06:26:21,001 --> 06:26:23,000 WHO ARE PAID FOR BY THE 8560 06:26:23,001 --> 06:26:26,000 VESTMENT BANKS, STAMPED THEM 8561 06:26:26,001 --> 06:26:28,000 WITH AAA RATINGS, GAVE THEM THE 8562 06:26:28,001 --> 06:26:30,000 GOOD HOUSEKEEPING SEAL OF 8563 06:26:30,001 --> 06:26:31,000 APPROVAL AND LET THE WORLD 8564 06:26:31,001 --> 06:26:32,000 BELIEVE THAT THEY REALLY WERE 8565 06:26:32,001 --> 06:26:33,000 SOUPED INVESTMENTS. 8566 06:26:33,001 --> 06:26:35,000 THEY FAILED. 8567 06:26:35,001 --> 06:26:37,000 AND LO AND BEHOLD, WE FIND OUT 8568 06:26:37,001 --> 06:26:39,000 THAT THE GOVERNMENT HAS GIVEN A 8569 06:26:39,001 --> 06:26:41,000 SANCTION IN LAW TO THESE RATING 8570 06:26:41,001 --> 06:26:44,000 ENCIES TO BE THE DETERMINERS 8571 06:26:44,001 --> 06:26:45,000 OF CREDITWORTHINESS, A MONOPOLY, 8572 06:26:45,001 --> 06:26:46,000 IF YOU WILL. 8573 06:26:46,001 --> 06:26:48,000 ONE GOOD THING THAT THIS BILL 8574 06:26:48,001 --> 06:26:50,000 DOES, IT STRIPS THAT OUT. 8575 06:26:50,001 --> 06:26:52,000 NO LONGER WILL THEY BE GIVEN 8576 06:26:52,001 --> 06:26:54,000 THAT STATE-SPONSORED MONOPOLY, 8577 06:26:54,001 --> 06:26:56,000 NOW THE MARKETPLACE WILL HAVE TO 8578 06:26:56,001 --> 06:26:58,000 WORK, NOW WE WON'T BE SO RELYING 8579 06:26:58,001 --> 06:26:59,000 UPON PEOPLE WHO ARE PAID FOR BY 8580 06:26:59,001 --> 06:27:00,000 THE INVESTMENT BANKS WHO DIDN'T 8581 06:27:00,001 --> 06:27:02,000 DO THEIR HOMEWORK AND IN PART 8582 06:27:02,001 --> 06:27:05,000 CAUSED THIS CRISIS. 8583 06:27:05,001 --> 06:27:07,000 IF WE WOULD HAVE TACKLED THE 8584 06:27:07,001 --> 06:27:09,000 G.S.E.'S, FANE AND FREDDIE, 8585 06:27:09,001 --> 06:27:10,000 AND IF WE WOULD HAVE TACKLED 8586 06:27:10,001 --> 06:27:12,000 UNDERWRITING STANDARDS, I WOULD 8587 06:27:12,001 --> 06:27:13,000 BE HERE GIVING A SPEECH TODAY 8588 06:27:13,001 --> 06:27:14,000 TALKING ABOUT WHY I VOTED FOR 8589 06:27:14,001 --> 06:27:17,000 THEILL. 8590 06:27:17,001 --> 06:27:19,000 BUT WE ONLY DID ONE OF THE FOUR THINGS. 8591 06:27:19,001 --> 06:27:21,000 AND UNFORTUNATELY, NOW WE HAVE A 8592 06:27:21,001 --> 06:27:23,000 BILL THAT WALL STREET LOVES, 8593 06:27:23,001 --> 06:27:24,000 CITIGROUP LOVE IT, GOLDMAN 8594 06:27:24,001 --> 06:27:26,000 SACHS LOVES IT, BUT MAIN STREET 8595 06:27:26,001 --> 06:27:28,000 IS VERY CONCERNED ABOUT IT. 8596 06:27:28,001 --> 06:27:29,000 WE'RE GOING TO MAKE SURE THAT 8597 06:27:29,001 --> 06:27:31,000 ORTHODONTISTS ARE REGULATED 8598 06:27:31,001 --> 06:27:34,000 BECAUSE THEY EVERY ONCE IN A 8599 06:27:34,001 --> 06:27:35,000 WHILE EXTEND CREDIT TO THEIR 8600 06:27:35,001 --> 06:27:37,000 PATIENTS, BUT THE FOLKS ON WALL 8601 06:27:37,001 --> 06:27:38,000 STREET THAT REALLY CAUSED THESE 8602 06:27:38,001 --> 06:27:41,000 PROBLEMS AND THE UNDERLYING 8603 06:27:41,001 --> 06:27:43,000 CAUSE OF THE DEBACLE, THE 8604 06:27:43,001 --> 06:27:46,000 MORTGAGE PROBLEM, THE 8605 06:27:46,001 --> 06:27:47,000 UNDERWRITING PROBLEM AND THE 8606 06:27:47,001 --> 06:27:52,000 FANNIE AND FREDDIE PROBLEM 8607 06:27:52,001 --> 06:27:54,000 DOESN'T GET ADDRESSED. 8608 06:27:54,001 --> 06:27:55,000 ACCORDING TO A STUDY BY THE U.S. 8609 06:27:55,001 --> 06:27:57,000 CHAMBER OF COMMERCE, THIS BILL 8610 06:27:57,001 --> 06:27:59,000 WILL CREATE A HUGE NEW 8611 06:27:59,001 --> 06:28:01,000 GOVERNMENTAL BUREAUCRACY. 8612 06:28:01,001 --> 06:28:03,000 70 NEW FEDERAL REGULATIONS FOR 8613 06:28:03,001 --> 06:28:04,000 THE BUREAU OF 8614 06:28:04,001 --> 06:28:05,000 PROTECTI. 8615 06:28:05,001 --> 06:28:07,000 54 NEW FEDERAL REGULATIONS 8616 06:28:07,001 --> 06:28:09,000 THROUGH THE U. COMMODITIES 8617 06:28:09,001 --> 06:28:10,000 FUTURES 8618 06:28:10,001 --> 06:28:12,000 11 NEW FEDERAL REGULATIONS 8619 06:28:12,001 --> 06:28:14,000 THROUGH THE FEDERAL DEPOSIT 8620 06:28:14,001 --> 06:28:15,000 INSURANCE CORP, 30 THROUGH THE 8621 06:28:15,001 --> 06:28:16,000 FEDERAL RESERVE. 8622 06:28:16,001 --> 06:28:18,000 205 THROUGH THE S.E.C. 8623 06:28:18,001 --> 06:28:21,000 WELL, YOU SAY WELL, THAT SOUNDS 8624 06:28:21,001 --> 06:28:22,000 GOOD, WE NEED MORE REGULATIONS, 8625 06:28:22,001 --> 06:28:23,000 RIGHT, THERE WAS A PROBLEM. 8626 06:28:23,001 --> 06:28:25,000 BUT IF THE REGULATIONS DON'T GO 8627 06:28:25,001 --> 06:28:27,000 AFTER THE PROBLEM THAT CAUSED 8628 06:28:27,001 --> 06:28:28,000 THE DEBACLE, WHAT DO THE 8629 06:28:28,001 --> 06:28:29,000 REGULATIONS DO? 8630 06:28:29,001 --> 06:28:31,000 WE'RE IN A SITUATION RIGHT NOW 8631 06:28:31,001 --> 06:28:32,000 WHERE BUSINESS IN THIS COUNTRY 8632 06:28:32,001 --> 06:28:34,000 IS FROZEN. 8633 06:28:34,001 --> 06:28:36,000 IT IS FROZEN SOLID BECAUSE OF 8634 06:28:36,001 --> 06:28:37,000 THE ACTIONS OF THIS CONGRESS AND 8635 06:28:37,001 --> 06:28:39,000 THIS ADMINISTRATION WHO ARE 8636 06:28:39,001 --> 06:28:41,000 DOING SO MUCH TO THIS ECONOMY 8637 06:28:41,001 --> 06:28:42,000 THAT BIG BUSINESS AND SMALL 8638 06:28:42,001 --> 06:28:45,000 BUSINESS ALIKE DOES NOT FEEL 8639 06:28:45,001 --> 06:28:46,000 THAT THEY CAN HIRE NEW WORKERS. 8640 06:28:46,001 --> 06:28:47,000 THERE IS SO MUCH UNCERTAINTY IN 8641 06:28:47,001 --> 06:28:49,000 THE MARKETPLACE. 8642 06:28:49,001 --> 06:28:51,000 AND I HEAR THIS, MR. PRESIDENT, 8643 06:28:51,001 --> 06:28:54,000 FROM SMALL BUSINESS PEOPLE IN 8644 06:28:54,001 --> 06:28:55,000 FLORIDA WHERE WE HAVE 8645 06:28:55,001 --> 06:28:57,000 1.9 MILLION SMALL BUSINESSES TO WORK FORCE CENTERS WHO ARE 8646 06:28:57,001 --> 06:28:59,000 TRYING TO GET PEOPLE BACK TO 8647 06:28:59,001 --> 06:29:00,000 WORK, TO INCUBATORS WHO ARE 8648 06:29:00,001 --> 06:29:01,000 TRYING TO GROW NEW JOBS TO 8649 06:29:01,001 --> 06:29:03,000 PRESIDENTS OF CHAMBERS OF 8650 06:29:03,001 --> 06:29:05,000 COMMERCE AND OTHER FOLKS THAT I 8651 06:29:05,001 --> 06:29:07,000 TALK TO REGULARLY, THEY TELL ME 8652 06:29:07,001 --> 06:29:09,000 BUSINESS IS FROZEN. 8653 06:29:09,001 --> 06:29:10,000 WASHINGTON IS DOING SO MUCH TO 8654 06:29:10,001 --> 06:29:11,000 THE ECONOMY, THEY DON'T KNOW 8655 06:29:11,001 --> 06:29:13,000 WHERE TO TURN NEXT. 8656 06:29:13,001 --> 06:29:14,000 AND BECAUSE THEY DON'T KNOW WHAT 8657 06:29:14,001 --> 06:29:16,000 THE FUTURE LOOKS LIKE AND 8658 06:29:16,001 --> 06:29:18,000 BECAUSE THIS GOVERNMENT IS 8659 06:29:18,001 --> 06:29:19,000 PULLING THESE HUGE LEVERS ON THE 8660 06:29:19,001 --> 06:29:24,000 ECONOMY, THEY FEEL LIKE THEY 8661 06:29:24,001 --> 06:29:25,000 CAN'T MAKE ANY MOVES. 8662 06:29:25,001 --> 06:29:27,000 BUSINESSES IN FLORIDA, SMALL 8663 06:29:27,001 --> 06:29:28,000 BUSINESSES ARE TELLING ME 8664 06:29:28,001 --> 06:29:30,000 THEY'RE NOT GOING TO HIRE NEW 8665 06:29:30,001 --> 06:29:31,000 PEOPLE BECAUSE THEY CAN'T AFFORD 8666 06:29:31,001 --> 06:29:32,000 THE NEW REGULATION. 8667 06:29:32,001 --> 06:29:34,000 IN FACT, SOME OF THESE 8668 06:29:34,001 --> 06:29:37,000 BUSINESSES ARE NOT ONLY GOING TO 8669 06:29:37,001 --> 06:29:40,000 NOT HIRE NEW PEOPLE, THEY ARE 8670 06:29:40,001 --> 06:29:41,000 GOING TO LET NEW PEOPLE GO. 8671 06:29:41,001 --> 06:29:43,000 THIS FINANCIAL REFORM BILL, 8672 06:29:43,001 --> 06:29:44,000 BUSINESS PEOPLE HAVE TOLD ME IN 8673 06:29:44,001 --> 06:29:45,000 FLORIDA, THAT ITS TRADING DESK 8674 06:29:45,001 --> 06:29:46,000 IS GOING TO THE BAHAMAS. 8675 06:29:46,001 --> 06:29:49,000 THOSE FOLKS ARE NOW GOING TO 8676 06:29:49,001 --> 06:29:51,000 MOVE AND NO LONGER ADD TO OUR 8677 06:29:51,001 --> 06:29:52,000 TAX BASE AND THE WEALTH AND 8678 06:29:52,001 --> 06:29:53,000 DIVERSITY OF OUR COMMUNITY 8679 06:29:53,001 --> 06:29:55,000 BECAUSE THIS REGULATION'S GOING 8680 06:29:55,001 --> 06:29:56,000 TO PUT THEM IF A SITUATION WHERE 8681 06:29:56,001 --> 06:29:57,000 BUSINESS SAYS IT'S MORE 8682 06:29:57,001 --> 06:30:02,000 BENEFICIAL TO MOVE THEM OUT OF 8683 06:30:02,001 --> 06:30:05,000 THE STATE, OUT OF THE COUNTRY. 8684 06:30:05,001 --> 06:30:07,000 THERE IS ALWAYS UNINTENDED CONSEQUENCES. 8685 06:30:07,001 --> 06:30:09,000 AND WHEN WE PULL THESE HUGE 8686 06:30:09,001 --> 06:30:11,000 LEVERS ON THE ECONOMY, WE CREATE 8687 06:30:11,001 --> 06:30:12,000 TREMENDOUS UNCERTAINTY. 8688 06:30:12,001 --> 06:30:14,000 AND BUSINESS DOES WHAT BUSINESS 8689 06:30:14,001 --> 06:30:16,000 NEEDS TO DO TO KEEP ITS PEOPLE 8690 06:30:16,001 --> 06:30:19,000 WORKING AND TO MAKE PROFITS. 8691 06:30:19,001 --> 06:30:20,000 THAT'S WHAT BUSINESS IS FOCUSED ON. 8692 06:30:20,001 --> 06:30:22,000 THOSE ARE THE JOBS THAT ALLOW 8693 06:30:22,001 --> 06:30:23,000 ALL OF US TO WORK, TO PROVIDE 8694 06:30:23,001 --> 06:30:26,000 FOR OUR FAMILIES. 8695 06:30:26,001 --> 06:30:27,000 AND RHT NOW THOSE JOBS ARE 8696 06:30:27,001 --> 06:30:28,000 UNDER SIEGE. 8697 06:30:28,001 --> 06:30:29,000 IN A STATE LIKE MINE, 8698 06:30:29,001 --> 06:30:31,000 MR. PRESIDENT, WHERE WE HAVE 8699 06:30:31,001 --> 06:30:33,000 NEARLY 12% UNEMPLOYMENT, WHERE 8700 06:30:33,001 --> 06:30:34,000 TIMES ARE ESPECIALLY DIFFICULT, 8701 06:30:34,001 --> 06:30:37,000 THE LAST THING WE NEED IN THE 8702 06:30:37,001 --> 06:30:39,000 WORLD IS FOR THE FEDERAL GOVERNMENT TO BE MONKEYING WITH 8703 06:30:39,001 --> 06:30:41,000 THE ECONOMY TO THE EXTENT THAT 8704 06:30:41,001 --> 06:30:44,000 BUSINESSES CAN'T FEEL LIKE THEY 8705 06:30:44,001 --> 06:30:45,000 CAN HIRE NEW WORKERS. 8706 06:30:45,001 --> 06:30:46,000 THIS FINANCIAL REGULATORY REFORM 8707 06:30:46,001 --> 06:30:49,000 BILL DOES MORE OF WHAT THE 8708 06:30:49,001 --> 06:30:52,000 HEALTH CARE BILL DID AND IT 8709 06:30:52,001 --> 06:30:54,000 SEEMS TO BE THE PENCHANTF THIS CONGRESS. 8710 06:30:54,001 --> 06:30:55,000 WE SHOULD BE FOCUSED ON JOBS, 8711 06:30:55,001 --> 06:30:57,000 MR. PRESIDENT. 8712 06:30:57,001 --> 06:31:02,000 WE SHOULD BE HERE DAY AND NIGHT 8713 06:31:02,001 --> 06:31:03,000 TRYING TO FIND WAYS TO MAKE SURE 8714 06:31:03,001 --> 06:31:06,000 THAT BUSINESS HAS THE INCENTIVES 8715 06:31:06,001 --> 06:31:08,000 IT CAN TO CREATE NEW JOBS AND 8716 06:31:08,001 --> 06:31:09,000 RETAIN JOBS. 8717 06:31:09,001 --> 06:31:11,000 BECAUSE WE NEED TO GET PEOPLE 8718 06:31:11,001 --> 06:31:13,000 BACK TO WORK. 8719 06:31:13,001 --> 06:31:15,000 SO THIS FINANCIAL REGULATORY 8720 06:31:15,001 --> 06:31:16,000 REFORM BILL WAS SOMETHING THAT 8721 06:31:16,001 --> 06:31:17,000 WE SHOULD HAVE HAD 80 OR 90 8722 06:31:17,001 --> 06:31:18,000 VOTES ON. 8723 06:31:18,001 --> 06:31:20,000 IT SHOULD HAVE BEEN NARROWLY 8724 06:31:20,001 --> 06:31:22,000 FOCUSED AND TAILORED ON THE 8725 06:31:22,001 --> 06:31:24,000 PROBLEMS THAT CAUSED THE 8726 06:31:24,001 --> 06:31:26,000 FINANCIAL DEBACLE OF 2008 THAT 8727 06:31:26,001 --> 06:31:29,000 WE STILL SUFFERED THROUGH. 8728 06:31:29,001 --> 06:31:31,000 AND THIS CHAMBER NEEDS TO GET IN 8729 06:31:31,001 --> 06:31:32,000 THE BUSINESS OF FOCUSING ON WHAT 8730 06:31:32,001 --> 06:31:33,000 SHOULD BE DONE TO ADDRESS T 8731 06:31:33,001 --> 06:31:35,000 PROBLEM AND NOT USING EVERY 8732 06:31:35,001 --> 06:31:36,000 CRISIS AS AN EXCUSE TO GROW 8733 06:31:36,001 --> 06:31:38,000 GOVERNMENT. 8734 06:31:38,001 --> 06:31:39,000 THIS NEW CONSUMER AGENCY THAT WE 8735 06:31:39,001 --> 06:31:42,000 JUST CREATED WHICH WILL COST US 8736 06:31:42,001 --> 06:31:44,000 BILLIONS OF DOLLARS WHICH WILL 8737 06:31:44,001 --> 06:31:45,000 EMPOWER A NEW FEDERAL GOVERNMENT 8738 06:31:45,001 --> 06:31:49,000 EXECUTIVE WHO REPORTS TO NO 8739 06:31:49,001 --> 06:31:51,000 BOARD, TO BE ABLE TO MAKE BROAD 8740 06:31:51,001 --> 06:31:53,000 AND WIDE-RANGING POLICY 8741 06:31:53,001 --> 06:31:55,000 DECISIONS ACROSS THIS COUNTRY 8742 06:31:55,001 --> 06:31:57,000 AND IN THE BOARDROOMS OF 8743 06:31:57,001 --> 06:31:58,000 BUSINESSES OF AMERICA'S 8744 06:31:58,001 --> 06:32:00,000 COMPANIES. 8745 06:32:00,001 --> 06:32:01,000 THAT'S HOW WASHINGTON SOLVES THE 8746 06:32:01,001 --> 06:32:04,000 PROBLEM THESE DAYS. 8747 06:32:04,001 --> 06:32:05,000 WE DON'T FIX THE S.E.C., WHO'S 8748 06:32:05,001 --> 06:32:06,000 THE AGENCY THAT'S SUPPOSED TO BE 8749 06:32:06,001 --> 06:32:08,000 DOING THE JOB 8750 06:32:08,001 --> 06:32:09,000 WE DON'T GO IN AND FIRE ALL THE 8751 06:32:09,001 --> 06:32:10,000 PEOPLE AT THE SECURITIES AND 8752 06:32:10,001 --> 06:32:11,000 EXCHANGE COMMISSION WHO SHOULD 8753 06:32:11,001 --> 06:32:13,000 HAVE BEEN ON TOP OF THIS. 8754 06:32:13,001 --> 06:32:14,000 WE CREATE A WHOLE NEW 8755 06:32:14,001 --> 06:32:16,000 GOVERNMENTAL LEVEL OF 8756 06:32:16,001 --> 06:32:18,000 BUREAUCRACY. 8757 06:32:18,001 --> 06:32:20,000 WE LAYER GOVERNMENTAL AGENCY ON 8758 06:32:20,001 --> 06:32:22,000 TOP OF GOVERNMENTAL AGENCY, 8759 06:32:22,001 --> 06:32:24,000 CREATE MORE POWER, CREATE BIGGER 8760 06:32:24,001 --> 06:32:28,000 GOVERNMENT, SPEND MORE OF YOUR 8761 06:32:28,001 --> 06:32:30,000 MONEY AND RUN THIS COUNTRY INTO FURTHER DEBT. 8762 06:32:30,001 --> 06:32:31,000 WE NEED A CHANGE, MR. PRESIDENT -- 8763 06:32:31,001 --> 06:32:32,000 MADAM PRESIDENT. 8764 06:32:32,001 --> 06:32:33,000 WE NEED TO DO THINGS DIFFERENTLY. 8765 06:32:33,001 --> 06:32:34,000 I WISH I COULD HAVE VOTED FOR 8766 06:32:34,001 --> 06:32:36,000 THIS BILL. 8767 06:32:36,001 --> 06:32:37,000 I WISH IT WOULD HAVE FOCUSED ON 8768 06:32:37,001 --> 06:32:38,000 THE ISSUES THAT WE NEEDED TO, 8769 06:32:38,001 --> 06:32:39,000 BUT, UNFORTUNATELY, I CAN'T 8770 06:32:39,001 --> 06:32:41,000 BECAUSE IT DOES MORE HARM THAN 8771 06:32:41,001 --> 06:32:42,000 GOOD. 8772 06:32:42,001 --> 06:32:43,000 I'M APPRECIATIVE TO MY 8773 06:32:43,001 --> 06:32:46,000 COLLEAGUES FOR SUPPORTING THE 8774 06:32:46,001 --> 06:32:47,000 AMENDMENT I DID WITH SENATOR 8775 06:32:47,001 --> 06:32:48,000 CANTWELL ON THE RATING AGENCIES, 8776 06:32:48,001 --> 06:32:50,000 BUT REALLY ONLY IN THAT REGARD 8777 06:32:50,001 --> 06:32:52,000 AND IN A FEW OTHER REGARDS DID 8778 06:32:52,001 --> 06:32:53,000 WE DO SOMETHING THAT ACTUALLY HELPED. 8779 06:32:53,001 --> 06:32:55,000 MOST OF WHAT WE DID DIDN'T 8780 06:32:55,001 --> 06:32:57,000 ADDRESS THE PROBLEM AND IT 8781 06:32:57,001 --> 06:32:59,000 CAUSED MORE HARM THAN GOOD. 8782 06:32:59,001 --> 06:33:00,000 WITH THAT, MADAM PRESIDENT, I 8783 06:33:00,001 --> 06:33:05,000 YIELD THE FLOOR TO MY COLLEAGUE 8784 06:33:05,001 --> 06:33:08,000 FROM KENTUCKY. 8785 06:33:08,001 --> 06:33:09,000 MR. BUNNING: MADAM PRESIDENT? THE PRESIDING OFFICER: THE 8786 06:33:09,001 --> 06:33:10,000 SENATOR FROM KENTUCKY. 8787 06:33:10,001 --> 06:33:11,000 MR. BUNNING: MADAM PRESIDENT, I 8788 06:33:11,001 --> 06:33:13,000 HAVE COME TO THE FLOOR TO TALK 8789 06:33:13,001 --> 06:33:15,000 ABOUT THE CONFERENCE REPORT ON 8790 06:33:15,001 --> 06:33:17,000 THE FINANCIAL REGULATION BILL 8791 06:33:17,001 --> 06:33:22,000 THAT THE SENATE HAS JUST PASSED. 8792 06:33:22,001 --> 06:33:24,000 I THINK IT WAS A HUGE MISTAKE. 8793 06:33:24,001 --> 06:33:25,000 I VOTED AGAINST THE BILL AND NOW 8794 06:33:25,001 --> 06:33:29,000 I WANT TO TAKE SOME TIME TO 8795 06:33:29,001 --> 06:33:30,000 EXPLAIN WHY. 8796 06:33:30,001 --> 06:33:33,000 THE SHORT EXPLANATION IS THE 8797 06:33:33,001 --> 06:33:36,000 BILL DOES NOT ADDRESS THE CAUSES 8798 06:33:36,001 --> 06:33:39,000 OF THE FINANCIAL CRISIS AND 8799 06:33:39,001 --> 06:33:41,000 INSTEAD IT SEWS THE SEED OF THE 8800 06:33:41,001 --> 06:33:48,000 NE FINANCIAL CRISIS. 8801 06:33:48,001 --> 06:33:49,000 ADDING UNNECESSARY STRAINS ON 8802 06:33:49,001 --> 06:33:50,000 OUR ALREADY STRUGGLING ECONOMY. 8803 06:33:50,001 --> 06:33:52,000 I'M GOING TO SPEND THE NEXT 8804 06:33:52,001 --> 06:33:57,000 LITTLE WHILE GIVING THE LONGER 8805 06:33:57,001 --> 06:33:59,000 EXPLANATION. 8806 06:33:59,001 --> 06:34:00,000 AS I HAVE SAID MANY TIMES ON THE 8807 06:34:00,001 --> 06:34:02,000 BANKING COMMITTEE AND ON THE 8808 06:34:02,001 --> 06:34:03,000 FLOOR OF THE SENATE, I WANT TO 8809 06:34:03,001 --> 06:34:09,000 PASS A STRONG FINANCIAL REFORM 8810 06:34:09,001 --> 06:34:12,000 BILL THAT REINS IN THE EXCESSES 8811 06:34:12,001 --> 06:34:13,000 OF OUR LARGE FINANCIAL COMPANIES 8812 06:34:13,001 --> 06:34:15,000 AND THE FEDERAL RESERVE. 8813 06:34:15,001 --> 06:34:19,000 NO ONE HAS BEEN A STRONGER VOICE 8814 06:34:19,001 --> 06:34:22,000 AGAINST THE FINANCIAL INDUSTRY 8815 06:34:22,001 --> 06:34:25,000 ENABLERS AT THE FED THAN I HAVE. 8816 06:34:25,001 --> 06:34:27,000 AND I HAVE FOUGHT EVERY BAILOUT 8817 06:34:27,001 --> 06:34:34,000 BROUGHT THROUGH THE CONGRESS AS 8818 06:34:34,001 --> 06:34:35,000 WELL AS THE BAILOUTS THAT THE 8819 06:34:35,001 --> 06:34:37,000 FEDERAL RESERVE THAT BOTH THE 8820 06:34:37,001 --> 06:34:38,000 BUSH AND THE OBAMA 8821 06:34:38,001 --> 06:34:39,000 ADMINISTRATION PUT IN PLACE 8822 06:34:39,001 --> 06:34:41,000 WITHOUT THE APPROVAL OF 8823 06:34:41,001 --> 06:34:43,000 CONGRESS. 8824 06:34:43,001 --> 06:34:48,000 I VERY MUCH WANTED TO PASS A 8825 06:34:48,001 --> 06:34:50,000 BILL THAT ENDS BAILOUTS AND 8826 06:34:50,001 --> 06:34:54,000 REINS IN THE RECKLESS ACTIVITIES 8827 06:34:54,001 --> 06:34:55,000 OF OUR FINANCIAL SYSTEM. 8828 06:34:55,001 --> 06:34:56,000 UNFORTUNATELY, JUST LIKE THE 8829 06:34:56,001 --> 06:34:58,000 BILL PASSED BY THE SENATE 8830 06:34:58,001 --> 06:34:59,000 EARLIER THIS YEAR, THE 8831 06:34:59,001 --> 06:35:04,000 CONFERENCE REPORT BEFORE THE 8832 06:35:04,001 --> 06:35:05,000 SENATE TODAY DID NOT END 8833 06:35:05,001 --> 06:35:07,000 BAILOUTS. 8834 06:35:07,001 --> 06:35:09,000 IN FACT, IT DOES JUST THE 8835 06:35:09,001 --> 06:35:10,000 OPPOSITE: IT MAKES THEM 8836 06:35:10,001 --> 06:35:12,000 PERMANENT. 8837 06:35:12,001 --> 06:35:13,000 MR. BUNNING: THIS BILL WILLLSO 8838 06:35:13,001 --> 06:35:16,000 LEAD TO FUTURE FINANCIAL 8839 06:35:16,001 --> 06:35:19,000 DISASTERS BECAUSE IT IGNORES THE 8840 06:35:19,001 --> 06:35:22,000 ROOT CAUSES OF THE CRISIS, FAILS 8841 06:35:22,001 --> 06:35:23,000 TO PUT THE NECESSARY HANDCUFFS 8842 06:35:23,001 --> 06:35:27,000 ON THE KEY PARTS OF THE 8843 06:35:27,001 --> 06:35:30,000 FINANCIAL SYSTEM AND WILL RESULT 8844 06:35:30,001 --> 06:35:35,000 IN EVEN GREATER CONCENTRATION OF 8845 06:35:35,001 --> 06:35:37,000 THE FINANCIAL SYSTEM AND A VERY 8846 06:35:37,001 --> 06:35:39,000 FEW LARGE FIRMS. 8847 06:35:39,001 --> 06:35:45,000 THE LARGEST SINGLE CONTRIBUTING 8848 06:35:45,001 --> 06:35:46,000 FACTOR IN THE CURRENT FINANCIAL 8849 06:35:46,001 --> 06:35:51,000 CRISIS AND MOST OTHER FINANCIAL 8850 06:35:51,001 --> 06:35:56,000 CRISIS IN THE PAST IS FLAWED 8851 06:35:56,001 --> 06:35:58,000 FEDERAL RESERVE MONETARY POLICY. 8852 06:35:58,001 --> 06:36:00,000 STARTING IN THE LATE 1990'S, 8853 06:36:00,001 --> 06:36:06,000 FORMER FED CHAIRMAN ALAN 8854 06:36:06,001 --> 06:36:07,000 GREENSPAN USED EASY MONEY TO POP 8855 06:36:07,001 --> 06:36:09,000 UP THE FINANCIAL FIRMS, 8856 06:36:09,001 --> 06:36:13,000 MANIPULATE THE STOCK MARKET AND 8857 06:36:13,001 --> 06:36:15,000 MICROMANAGE THE ECONOMY. 8858 06:36:15,001 --> 06:36:17,000 THAT EASY MONEY INFLATED THE 8859 06:36:17,001 --> 06:36:19,000 TECH STOCKS AND THE DOT-COM 8860 06:36:19,001 --> 06:36:21,000 BUBBLE. 8861 06:36:21,001 --> 06:36:24,000 AFTER THAT BUBBLE BURST AND ALSO 8862 06:36:24,001 --> 06:36:27,000 FOLLOWING THE SEPTEMBER THE 8863 06:36:27,001 --> 06:36:30,000 11th TERRORIST ATTACKS, HE 8864 06:36:30,001 --> 06:36:32,000 AGAIN LOOSENED MONETARY POLICY 8865 06:36:32,001 --> 06:36:38,000 WHICH BEGAN TO INFLATE THE 8866 06:36:38,001 --> 06:36:40,000 LARGEST ASSET BUBBLE IN HISTORY. 8867 06:36:40,001 --> 06:36:41,000 WHILE THE BUBBLE WAS THE MOST 8868 06:36:41,001 --> 06:36:44,000 VISIBLE IN HOUSING, IT REALLY 8869 06:36:44,001 --> 06:36:47,000 WAS A DEBT BUBBLE THAT SPREAD 8870 06:36:47,001 --> 06:36:51,000 ACROSS ALL HOUSEHOLD, CORPORATE 8871 06:36:51,001 --> 06:36:54,000 AND GOVERNMENT BORROWING. 8872 06:36:54,001 --> 06:36:55,000 IN ABOUT 200, THE HOUSING 8873 06:36:55,001 --> 06:36:59,000 BUBBLE STARTED TO BECOME 8874 06:36:59,001 --> 06:37:06,000 UNSTABLE, BUT LENDING STANDARDS 8875 06:37:06,001 --> 06:37:07,000 WERE RELAXED AND THE RISE OF 8876 06:37:07,001 --> 06:37:08,000 SUBPRIME AND OTHER 8877 06:37:08,001 --> 06:37:09,000 NONTRADITIONAL MORTGAGE ENABLED 8878 06:37:09,001 --> 06:37:15,000 THE BUBBLE TO KEEP GROWING FOR 8879 06:37:15,001 --> 06:37:16,000 ANOTHER COUPLE OF YEARS. 8880 06:37:16,001 --> 06:37:21,000 EVENTUALLY THE HOUSING BUBBLE 8881 06:37:21,001 --> 06:37:22,000 BECAME UNSUSTAINABLE AND POPPED. 8882 06:37:22,001 --> 06:37:26,000 THE CORPORATE DEBT BUBBLE 8883 06:37:26,001 --> 06:37:28,000 LARGELY DID THE SAME AND WE ARE 8884 06:37:28,001 --> 06:37:32,000 NOW SEEING GOVERNMENT DEBT 8885 06:37:32,001 --> 06:37:36,000 BECOME UNSUSTAINABLE AROUND THE 8886 06:37:36,001 --> 06:37:39,000 WORLD, INCLUDING HERE IN THE 8887 06:37:39,001 --> 06:37:41,000 UNITED STATES OF AMERICA. 8888 06:37:41,001 --> 06:37:44,000 DESPITE THE FED'S HISTORY OF 8889 06:37:44,001 --> 06:37:47,000 CAUSING FINANCIAL CRISIS AND ITS 8890 06:37:47,001 --> 06:37:50,000 CLEAR ROLE IN THE CURRENT 8891 06:37:50,001 --> 06:37:55,000 CRISIS, THIS BILL DOES NOTHING 8892 06:37:55,001 --> 06:37:56,000 TO REIN IN THE FED. 8893 06:37:56,001 --> 06:37:57,000 CHAIRMAN DODD'S ORIGINAL DRAFT 8894 06:37:57,001 --> 06:38:01,000 BILL PRESENTED TO THE BANKING 8895 06:38:01,001 --> 06:38:03,000 COMMITTEE LAST YEAR TOOK SOME 8896 06:38:03,001 --> 06:38:06,000 POSITIVE STEPS TO GET THE FED 8897 06:38:06,001 --> 06:38:09,000 BACK ON TRACK BY REMOVING THE 8898 06:38:09,001 --> 06:38:12,000 FED AS A REGULATOR. 8899 06:38:12,001 --> 06:38:16,000 BUT, UNFORTUNATELY, THAT DID NOT 8900 06:38:16,001 --> 06:38:17,000 MAKE IT INTO THE FINAL BIL. 8901 06:38:17,001 --> 06:38:22,000 NOTHING IN THIS BILL WILL STOP 8902 06:38:22,001 --> 06:38:24,000 THE NEXT BUBBLE OR COLLAPSE IF 8903 06:38:24,001 --> 06:38:26,000 THE FED CONTINUES WITH ITS EASY 8904 06:38:26,001 --> 06:38:29,000 MONEY POLICIES. 8905 06:38:29,001 --> 06:38:32,000 CHEAP MONEY WILL ALWAYS DISTORT 8906 06:38:32,001 --> 06:38:37,000 PRICES AND LEAD TO DANGEROUS 8907 06:38:37,001 --> 06:38:39,000 BEHAVIOR NO MATTER -- NO AMOUNT 8908 06:38:39,001 --> 06:38:41,000 OF REGULION CAN CONTAIN IT. 8909 06:38:41,001 --> 06:38:43,000 IN ADDITION TO ITS FLAWED 8910 06:38:43,001 --> 06:38:46,000 MONETARY POLICY, THE FEDERAL 8911 06:38:46,001 --> 06:38:48,000 RESERVE HAS FAILED AS A 8912 06:38:48,001 --> 06:38:51,000 REGULATOR LEADING UP TO THE CRISIS. 8913 06:38:51,001 --> 06:38:56,000 THE FED WAS RESPONSIBLE FOR 8914 06:38:56,001 --> 06:38:57,000 REGULATING MOST OF THE LARGE 8915 06:38:57,001 --> 06:38:59,000 FINANCIAL HOLDING COMPANIES, BUT 8916 06:38:59,001 --> 06:39:01,000 INSTEAD OF REGULATING THEM, IT 8917 06:39:01,001 --> 06:39:04,000 WAS A CHEERLEADER FOR THEM. 8918 06:39:04,001 --> 06:39:05,000 THE FED, ALONG WITH OTHER 8919 06:39:05,001 --> 06:39:09,000 REGULATORS, ALLOWED THOSE FIRMS 8920 06:39:09,001 --> 06:39:12,000 TO GROW EVEN LARGER AND TAKE 8921 06:39:12,001 --> 06:39:14,000 UNWISE RISK. 8922 06:39:14,001 --> 06:39:17,000 AND IN WHAT MAY BE THE FED'S 8923 06:39:17,001 --> 06:39:21,000 GREATEST REGULATORY FAILURE, 8924 06:39:21,001 --> 06:39:22,000 CHAIRMAN GREENSPAN REFUSED TO DO 8925 06:39:22,001 --> 06:39:32,000 THE JOB CONGRESS GAVE HIM AND 8926 06:39:32,001 --> 06:39:35,000 THE FED IN 1994 -- 1994 -- THE 8927 06:39:35,001 --> 06:39:36,000 JOB TO REGULATE MORTGAGES. 8928 06:39:36,001 --> 06:39:39,000 INSTEAD OF TAKING ACTION THAT 8929 06:39:39,001 --> 06:39:41,000 COULD HAVE PREVENTED AT LEAST 8930 06:39:41,001 --> 06:39:44,000 PART OF THE HOUSING BUBBLE 8931 06:39:44,001 --> 06:39:46,000 INFLATED BY SUBPRIME AND 8932 06:39:46,001 --> 06:39:47,000 NONTRADITIONAL MORTGAGES, 8933 06:39:47,001 --> 06:39:51,000 CHAIRMAN GREENSPAN ENCOURAGED 8934 06:39:51,001 --> 06:39:54,000 HOME BUYERS TO GET THOSE KIND OF 8935 06:39:54,001 --> 06:39:57,000 MORTGAGES. 8936 06:39:57,001 --> 06:39:58,000 HE AND CHAIRMAN BERNANKE, ANG 8937 06:39:58,001 --> 06:39:59,000 WITH MANY OTHERS AT THE FED, 8938 06:39:59,001 --> 06:40:02,000 SANG THE PRAISES OF THOSE 8939 06:40:02,001 --> 06:40:11,000 MORTGAGES AS FINANCIAL 8940 06:40:11,001 --> 06:40:12,000 INNOVATION THAT REDUCED RISK. 8941 06:40:12,001 --> 06:40:15,000 HOW WELL DID THE FED APPROACH TO 8942 06:40:15,001 --> 06:40:18,000 REGULATION WORK, I ASK YOU? 8943 06:40:18,001 --> 06:40:20,000 WELL, IN 2008, MOST, IF NOT ALL, 8944 06:40:20,001 --> 06:40:24,000 OF THE LARGEST FIRMS REGULATED 8945 06:40:24,001 --> 06:40:26,000 BY THE FED WOULD HAVE FAILED HAD 8946 06:40:26,001 --> 06:40:32,000 THEY NOT BEEN BAILED OUT THROUGH 8947 06:40:32,001 --> 06:40:34,000 TARP OR BY THE FED ON ITS OWN. 8948 06:40:34,001 --> 06:40:36,000 THAT SEEMS LIKE A PRETTY 8949 06:40:36,001 --> 06:40:39,000 OPEN-AND-SHUT CASE FOR ME FOR 8950 06:40:39,001 --> 06:40:41,000 REMOVING ALL REGULATORY 8951 06:40:41,001 --> 06:40:43,000 RESPONSIBILITY FROM THE FED AND 8952 06:40:43,001 --> 06:40:45,000 GIVING IT TO SOMEONE WHO WILL 8953 06:40:45,001 --> 06:40:47,000 USE IT. 8954 06:40:47,001 --> 06:40:50,000 BUT THAT IS NOT WHAT THIS BILL 8955 06:40:50,001 --> 06:40:52,000 DOES. 8956 06:40:52,001 --> 06:40:55,000 INSTEAD OF REAL REGULATORY 8957 06:40:55,001 --> 06:40:59,000 REFORM, THE BILL CONCENTRATES 8958 06:40:59,001 --> 06:41:02,000 REGULATION OF THE LARGEST 8959 06:41:02,001 --> 06:41:04,000 FINANCIAL FIRMS AT THE FEDERAL 8960 06:41:04,001 --> 06:41:10,000 RESERVE DESPITE THE FED'S LONG 8961 06:41:10,001 --> 06:41:12,000 HISTORY OF FAILED REGULATION. 8962 06:41:12,001 --> 06:41:14,000 AS I MENTIONED EARLIER, THE 8963 06:41:14,001 --> 06:41:15,000 ORIGINAL DRAFT OF THIS BILL 8964 06:41:15,001 --> 06:41:17,000 REMOVED BANK AND CONSUMER 8965 06:41:17,001 --> 06:41:20,000 PROTECTION REGULATIONS FROM THE 8966 06:41:20,001 --> 06:41:25,000 FED AND ALL THE OTHER REGULATORS 8967 06:41:25,001 --> 06:41:28,000 AND CREATED A SINGLE NEW BANKING 8968 06:41:28,001 --> 06:41:30,000 REGULATOR. 8969 06:41:30,001 --> 06:41:32,000 THAT IS A BETTER APPROACH BUT IT 8970 06:41:32,001 --> 06:41:35,000 WAS DROPPED BEFORE THE BILL EVER 8971 06:41:35,001 --> 06:41:37,000 GOT OUT OF THE BANK 8972 06:41:37,001 --> 06:41:42,000 COMMITTEE, AND NOW THE FED GETS 8973 06:41:42,001 --> 06:41:43,000 MORE POWER FOR BOTH JOBS. 8974 06:41:43,001 --> 06:41:47,000 EXCEPT FOR POSSIBLY CHAIRMAN 8975 06:41:47,001 --> 06:41:49,000 DODD, NO ONE HAS CRITICIZED THE 8976 06:41:49,001 --> 06:41:52,000 FED MORE THAN ME FOR ITS FAILURE 8977 06:41:52,001 --> 06:41:58,000 TO USE ITS CONSUMER PROTECTION 8978 06:41:58,001 --> 06:41:59,000 POWERS TO REGULATE MORTGAGES. 8979 06:41:59,001 --> 06:42:01,000 CHAIRMAN GREENSPAN DID NOTHING 8980 06:42:01,001 --> 06:42:05,000 FOR 12 YEARS AFTER CONGRESS GAVE 8981 06:42:05,001 --> 06:42:06,000 HIM THE POWER, AND CHAIRMAN 8982 06:42:06,001 --> 06:42:09,000 BERNANKE TOOK ANOTHER TWO YEARS 8983 06:42:09,001 --> 06:42:13,000 TO ACT AFTER HE REPLACED 8984 06:42:13,001 --> 06:42:14,000 CHAIRMAN GREENSPAN. 8985 06:42:14,001 --> 06:42:17,000 CLEARLY THE FED DID NOT TAKE 8986 06:42:17,001 --> 06:42:20,000 CONSUMER PROTECTION SERIOUSLY 8987 06:42:20,001 --> 06:42:22,000 AND IT DESERVES TO LOSE THAT 8988 06:42:22,001 --> 06:42:24,000 JOB. 8989 06:42:24,001 --> 06:42:25,000 I SUPPORT STRENGTHENING CONSUMER 8990 06:42:25,001 --> 06:42:28,000 PROTECTION IN THE FINANCIAL 8991 06:42:28,001 --> 06:42:31,000 SYSTEM BUT JUST CANNOT 8992 06:42:31,001 --> 06:42:34,000 UNDERSTAND KEEPING THAT JOB 8993 06:42:34,001 --> 06:42:37,000 INSIDE THE SAME FED THAT IGNORED 8994 06:42:37,001 --> 06:42:39,000 IT FOR DECADES. 8995 06:42:39,001 --> 06:42:41,000 NEXT TO REINING IN THE FED, THE 8996 06:42:41,001 --> 06:42:44,000 MOST IMPORTANT GOAL OF THIS BILL 8997 06:42:44,001 --> 06:42:50,000 SHOULD BE TO END BAILOUTS AND 8998 06:42:50,001 --> 06:42:54,000 THE IDEA OF TOO BIG TO FAIL. 8999 06:42:54,001 --> 06:42:56,000 INSTEAD, THE BILL MAKES TOO BIG 9000 06:42:56,001 --> 06:43:00,000 TO FAIL A PERMANENT FEATURE OF 9001 06:43:00,001 --> 06:43:02,000 OUR FINANCIAL SYSTEM AND WILL 9002 06:43:02,001 --> 06:43:04,000 INCREASE THE SIZE OF THE LARGEST 9003 06:43:04,001 --> 06:43:08,000 FINANCIAL FIRMS. 9004 06:43:08,001 --> 06:43:10,000 AS I SAID EARLIER, THE BILL 9005 06:43:10,001 --> 06:43:12,000 CONCENTRATES REGULATION OF THE 9006 06:43:12,001 --> 06:43:14,000 LARGEST FINANCIAL INSTITUTIONS 9007 06:43:14,001 --> 06:43:18,000 AT THE FEDERAL RESERVE. 9008 06:43:18,001 --> 06:43:19,000 THE FED FAILED AS A REGULATOR 9009 06:43:19,001 --> 06:43:25,000 LEADING UP TO THE CRISIS AND 9010 06:43:25,001 --> 06:43:26,000 SHOULD NOT BE THE REGULATORY -- 9011 06:43:26,001 --> 06:43:29,000 REGULATOR OF ANY BANKS. 9012 06:43:29,001 --> 06:43:32,000 BUT NOW FED REGULATION WILL BE A 9013 06:43:32,001 --> 06:43:35,000 SIGN THAT A FIRM IS TOO BIG TO 9014 06:43:35,001 --> 06:43:37,000 FAIL. 9015 06:43:37,001 --> 06:43:40,000 AND ON TOP OF THE NEW FED SEAL 9016 06:43:40,001 --> 06:43:43,000 OF APPROVAL FOR THE LARGEST 9017 06:43:43,001 --> 06:43:46,000 BANKS, THIS BILL CREATES A NEW 9018 06:43:46,001 --> 06:43:48,000 STABILITY COUNCIL THAT WILL 9019 06:43:48,001 --> 06:43:52,000 DESIGNATE OTHER NON-BANK FIRMS 9020 06:43:52,001 --> 06:43:57,000 FOR FEDERAL REGULATION AND, 9021 06:43:57,001 --> 06:43:58,000 THUS, TOO BIG TO FAIL. 9022 06:43:58,001 --> 06:44:01,000 FED REGULATIONS OF THE LARGEST 9023 06:44:01,001 --> 06:44:06,000 BANKS IS NOT ONLY THE WAY THIS 9024 06:44:06,001 --> 06:44:07,000 BILL MAKES TOO BIG TO FAIL AND 9025 06:44:07,001 --> 06:44:10,000 BAILOUTS PERMANENT. 9026 06:44:10,001 --> 06:44:12,000 THE LARGEST BANK HOLDING 9027 06:44:12,001 --> 06:44:16,000 COMPANIES AND OTHER FINANCIAL 9028 06:44:16,001 --> 06:44:22,000 FIRMS WILL NOW BE SUBJECT TO A 9029 06:44:22,001 --> 06:44:24,000 NEW RESOLUTION PROCESS. 9030 06:44:24,001 --> 06:44:25,000 ANY RESOLUTION PROCESS IS, BY 9031 06:44:25,001 --> 06:44:29,000 DEFINITION, A BAILOUT BECAUSE 9032 06:44:29,001 --> 06:44:31,000 THE WHOLE POINT IS TO ALLOW SOME 9033 06:44:31,001 --> 06:44:34,000 CREDITORS TO GET PAID MORE THAN 9034 06:44:34,001 --> 06:44:37,000 THEY WOULD IN A BANKRUPTCY 9035 06:44:37,001 --> 06:44:41,000 COURT. 9036 06:44:41,001 --> 06:44:43,000 AND THE REGULATOR WILL HAVE THE 9037 06:44:43,001 --> 06:44:45,000 ABILITY TO PICK WINNERS AND 9038 06:44:45,001 --> 06:44:48,000 LOSERS BY PAYING SOME CREDITORS 9039 06:44:48,001 --> 06:44:50,000 OFF ON BETTER TERMS THAN OTHER 9040 06:44:50,001 --> 06:44:53,000 CREDITORS. 9041 06:44:53,001 --> 06:44:56,000 EVEN IF THE FINANCIAL COMPA IS 9042 06:44:56,001 --> 06:44:58,000 CLOSED DOWN AT THE END OF THE 9043 06:44:58,001 --> 06:45:03,000 PROCESS, THE FACT THAT THE 9044 06:45:03,001 --> 06:45:06,000 CREDITORS ARE PROTECTED AGAINST 9045 06:45:06,001 --> 06:45:08,000 THE LOSSES THAT THEY WOULD 9046 06:45:08,001 --> 06:45:10,000 NORMALLY TAKE WILL ENCOURAGE 9047 06:45:10,001 --> 06:45:14,000 MORE RISKY BEHAVIOR. 9048 06:45:14,001 --> 06:45:16,000 THAT WILL LEAD TO MORE BEAR 9049 06:45:16,001 --> 06:45:17,000 STEARNS, LEHMAN BROTHERS, AND 9050 06:45:17,001 --> 06:45:20,000 A.I.G.'S. 9051 06:45:20,001 --> 06:45:21,000 NOT LESS. 9052 06:45:21,001 --> 06:45:24,000 THE RESOLUTION PROCESS IS NOT 9053 06:45:24,001 --> 06:45:28,000 THE ONLY WAY THIS BILL KEEPS 9054 06:45:28,001 --> 06:45:30,000 BAILOUTS ALIVE. 9055 06:45:30,001 --> 06:45:33,000 THE BILL DOES NOT SHUT OFF THE 9056 06:45:33,001 --> 06:45:35,000 FEDERAL RESERVE BAILOUT POWER. 9057 06:45:35,001 --> 06:45:38,000 WHILE SOME LIMITS ARE PLACED ON 9058 06:45:38,001 --> 06:45:41,000 THE FED, THE BILL STILL LETS IT 9059 06:45:41,001 --> 06:45:46,000 CREATE BAILOUT PROGRAMS TO BUY 9060 06:45:46,001 --> 06:45:50,000 UP ASSETS AND PUMP MONEY INTO 9061 06:45:50,001 --> 06:45:52,000 STRUGGLING FIRMS THROUGH 9062 06:45:52,001 --> 06:45:55,000 BROAD-BASED PROGRAMS. 9063 06:45:55,001 --> 06:45:59,000 THAT WILL PUT TAXPAYERS DIRECTLY 9064 06:45:59,001 --> 06:46:00,000 AT RISK AND MAKE FED BAILOUTS A 9065 06:46:00,001 --> 06:46:03,000 PERMANENT PART OF THE FINANCIAL 9066 06:46:03,001 --> 06:46:07,000 SYSTEM. 9067 06:46:07,001 --> 06:46:08,000 INSTEAD OF PUTTING ALL THESE 9068 06:46:08,001 --> 06:46:11,000 BAILOUT PARTS INTO LAW, WE 9069 06:46:11,001 --> 06:46:15,000 SHOULD BE PUTTING FAILED 9070 06:46:15,001 --> 06:46:18,000 COMPANIES INTO BANKRUPTCY. 9071 06:46:18,001 --> 06:46:20,000 BANKRUPTCY PROVIDES CERTAINTY 9072 06:46:20,001 --> 06:46:23,000 AND FAIRNESS AND PROTECTS THE 9073 06:46:23,001 --> 06:46:24,000 TAXPAYERS. 9074 06:46:24,001 --> 06:46:27,000 UNDER BANKRUPTCY, SIMILAR 9075 06:46:27,001 --> 06:46:28,000 CREDITORS ARE TREATED THE SAME, 9076 06:46:28,001 --> 06:46:31,000 WHICH PREVENTS THE GOVERNMENT 9077 06:46:31,001 --> 06:46:35,000 FROM PICKING WINNERS AND LOSERS 9078 06:46:35,001 --> 06:46:37,000 IN BAILOUTS. 9079 06:46:37,001 --> 06:46:39,000 SHAREHOLDERS AND CREDITORS ALSO 9080 06:46:39,001 --> 06:46:42,000 KNOW UP FRONT WHAT LOSSES THEY 9081 06:46:42,001 --> 06:46:45,000 ARE FACING AND WILL EXERCISE 9082 06:46:45,001 --> 06:46:46,000 CAUTION WHEN DEALING WITH 9083 06:46:46,001 --> 06:46:49,000 FINANCIAL COMPANIES. 9084 06:46:49,001 --> 06:46:52,000 SOME OF US TRIED TO REPLACE THE 9085 06:46:52,001 --> 06:46:54,000 BAILOUT PROVISIONS WITH A 9086 06:46:54,001 --> 06:46:56,000 REVISED BANKRUPTCY SECTION FOR 9087 06:46:56,001 --> 06:46:57,000 FINANCIAL COMPANIES, BUT, 9088 06:46:57,001 --> 06:47:00,000 UNFORTUNATELY, WE WERE NOT 9089 06:47:00,001 --> 06:47:02,000 SUCCESSFUL. 9090 06:47:02,001 --> 06:47:05,000 SINCE THE BILL DOES NOT TAKE 9091 06:47:05,001 --> 06:47:07,000 AWAY ANY GOVERNMENT PROTECTION 9092 06:47:07,001 --> 06:47:10,000 FOR FINANCIAL COMPANIES AND 9093 06:47:10,001 --> 06:47:12,000 SENDS THOSE THAT FAIL THROUGH 9094 06:47:12,001 --> 06:47:18,000 BANKRUPTCY, IT SHOULD AT LEAST 9095 06:47:18,001 --> 06:47:21,000 MAKE THEM SMALL ENOUGH TO FAIL. 9096 06:47:21,001 --> 06:47:25,000 DECADES OF COMBINATIONS HAVE 9097 06:47:25,001 --> 06:47:26,000 ALLOWED A HANDFUL OF BANKS TO 9098 06:47:26,001 --> 06:47:28,000 DOMINATE THE FINANCIAL 9099 06:47:28,001 --> 06:47:32,000 LANDSCAPE. 9100 06:47:32,001 --> 06:47:35,000 THE FOUR LARGEST FINANCIAL 9101 06:47:35,001 --> 06:47:43,000 COMPANIES HAVE ASSETS TOTALING 9102 06:47:43,001 --> 06:47:44,000 OVER 50%F OUR ANNUAL GROSS 9103 06:47:44,001 --> 06:47:46,000 DOMESTIC PRODUCT AND THE SIX 9104 06:47:46,001 --> 06:47:50,000 LARGEST COMPANIES HAVE ASSETS OF 9105 06:47:50,001 --> 06:47:52,000 MORE THAN 60% OF OUR GROSS 9106 06:47:52,001 --> 06:47:54,000 DOMESTIC PRODUCT. 9107 06:47:54,001 --> 06:47:59,000 THE FOUR LARGEST BANKS CONTROL 9108 06:47:59,001 --> 06:48:00,000 APPROXIMATELY ONE-THIRD -- NOW 9109 06:48:00,001 --> 06:48:05,000 GET -- GET THIS, NOW. 9110 06:48:05,001 --> 06:48:11,000 THE FOUR LARGEST BANKS CONTROL 9111 06:48:11,001 --> 06:48:12,000 APPROXIMATELY ONE-THIRD OF ALL 9112 06:48:12,001 --> 06:48:16,000 DEPOSITS I THE UNITED STATES OF 9113 06:48:16,001 --> 06:48:18,000 AMERICA. 9114 06:48:18,001 --> 06:48:19,000 THIS CONCENTRATION HAS COME 9115 06:48:19,001 --> 06:48:25,000 ABOUT BECAUSE CREDITORS WOULD 9116 06:48:25,001 --> 06:48:27,000 RATHER DEAL WITH FIRMS SEEING 9117 06:48:27,001 --> 06:48:28,000 TOO BIG TO FAIL KNOWING THAT THE 9118 06:48:28,001 --> 06:48:29,000 GOVERNMENT WILL PROTECT THEM 9119 06:48:29,001 --> 06:48:32,000 FROM LOSSES. 9120 06:48:32,001 --> 06:48:34,000 I WOULD RATHER TAKE AWAY THE 9121 06:48:34,001 --> 06:48:36,000 TAXPAYER PROTECTION FOR 9122 06:48:36,001 --> 06:48:41,000 CREDITORS OF LARGE FIRMS AND LET 9123 06:48:41,001 --> 06:48:43,000 THE MARKET DETERMINE THEIR SIZE. 9124 06:48:43,001 --> 06:48:44,000 BUT IF THAT IS INTO THE GOING TO 9125 06:48:44,001 --> 06:48:45,000 HAPPEN -- BUT IF THAT IS NOT 9126 06:48:45,001 --> 06:48:47,000 GOING TO HAPPEN, WE SHOULD PLACE 9127 06:48:47,001 --> 06:48:48,000 HARD LIMITS ON THE SIZE OF 9128 06:48:48,001 --> 06:48:53,000 FINANCIAL COMPANIES AND LIMIT 9129 06:48:53,001 --> 06:48:56,000 THE ACTIVITIES OF BANKS WITH 9130 06:48:56,001 --> 06:48:59,000 INSURED DEPOSITS. 9131 06:48:59,001 --> 06:49:03,000 ANY FINANCIAL COMPANY THAT ARE 9132 06:49:03,001 --> 06:49:06,000 OVER THOSE SIZE LIMITS MUST BE 9133 06:49:06,001 --> 06:49:08,000 FORCED TO SHRINK. 9134 06:49:08,001 --> 06:49:12,000 THIS WILL LEAD TO A MORE 9135 06:49:12,001 --> 06:49:14,000 COMPETITIVE BANKING SECTOR, 9136 06:49:14,001 --> 06:49:16,000 REDUCE THE INFLUENCE OF THE 9137 06:49:16,001 --> 06:49:19,000 LARGEST FIRMS, AND PREVENT A 9138 06:49:19,001 --> 06:49:23,000 HANDFUL OF THEM FROM HOLDING OUR 9139 06:49:23,001 --> 06:49:25,000 ECONOMY AND GOVERNMENT HOSTAGE 9140 06:49:25,001 --> 06:49:26,000 EVER AGAIN. 9141 06:49:26,001 --> 06:49:30,000 LIKE MOST OF THE OTHER REAL 9142 06:49:30,001 --> 06:49:32,000 RERM IDEAS THAT WERE PROPOSED 9143 06:49:32,001 --> 06:49:34,000 WHILE PREVIOUS VERSIONS OF THIS 9144 06:49:34,001 --> 06:49:37,000 BILL WERE IN THE BANKING 9145 06:49:37,001 --> 06:49:39,000 COMMITTEE OR ON THE SENATE 9146 06:49:39,001 --> 06:49:44,000 FLOOR, MEANINGFUL LIMITS ON THE 9147 06:49:44,001 --> 06:49:45,000 SIZE OF BANKS WERE ALSO LEFT 9148 06:49:45,001 --> 06:49:47,000 OUT. 9149 06:49:47,001 --> 06:49:48,000 ALONG WITH NOT SOLVING TOO BIG 9150 06:49:48,001 --> 06:49:52,000 TOAIL, THIS BILL DOES NOT 9151 06:49:52,001 --> 06:49:55,000 ADDRESS THE HOUSING FINANCE 9152 06:49:55,001 --> 06:49:58,000 PROBLEMS THAT WERE AT THE CENTER 9153 06:49:58,001 --> 06:50:01,000 OF THIS CRISIS AND ARE STILL 9154 06:50:01,001 --> 06:50:04,000 WITH US TODAY. 9155 06:50:04,001 --> 06:50:08,000 FIRST, THERE IS NOTHING IN THIS 9156 06:50:08,001 --> 06:50:09,000 BILL THAT WILL STOP UNSAFE 9157 06:50:09,001 --> 06:50:13,000 MORTGAGES UNDERWRITING PRACTICES 9158 06:50:13,001 --> 06:50:16,000 SUCH AS ZERO DOWN PAYMENT AND 9159 06:50:16,001 --> 06:50:19,000 INTEREST-ONLY MORTGAGES. 9160 06:50:19,001 --> 06:50:20,000 THERE'S A LOT OF TALK OF MAKING 9161 06:50:20,001 --> 06:50:23,000 FINANCIAL COMPANIES HAVE SKIN IN 9162 06:50:23,001 --> 06:50:25,000 THE GAME, BUT WHEN IT COMES TO 9163 06:50:25,001 --> 06:50:30,000 MORTGAGES, THE SKIN IN THE GAME 9164 06:50:30,001 --> 06:50:33,000 THAT MATTERS IS THE BORROWER'S. 9165 06:50:33,001 --> 06:50:36,000 SECOND, THE BILL IGNORES THE 9166 06:50:36,001 --> 06:50:39,000 ROLE OF GOVERNMENT HOUSING 9167 06:50:39,001 --> 06:50:41,000 POLICY AND FANNIE MAE AND 9168 06:50:41,001 --> 06:50:43,000 FREDDIE MAC, WHICH HAVE RECEIVED 9169 06:50:43,001 --> 06:50:45,000 MORE BAILOUT MONEY THAN ANYONE 9170 06:50:45,001 --> 06:50:48,000 ELSE. 9171 06:50:48,001 --> 06:50:50,000 THE BILL DOES NOT PUT AN END TO 9172 06:50:50,001 --> 06:50:53,000 THE GOVERNMENT-SPONSORED 9173 06:50:53,001 --> 06:50:55,000 ENTERPRISES. 9174 06:50:55,001 --> 06:50:56,000 TAXPAYER GUARANTEES AND 9175 06:50:56,001 --> 06:50:59,000 SUBSIDIES, OR STOP THE TAXPARS 9176 06:50:59,001 --> 06:51:01,000 FROM HAVING TO FOOT THE BILL FOR 9177 06:51:01,001 --> 06:51:06,000 THEIR IRRESPONSIBLE ACTIONS OVER 9178 06:51:06,001 --> 06:51:14,000 THE PAST DECADES. 9179 06:51:14,001 --> 06:51:16,000 OVER 96% -- 96% -- OF ALL 9180 06:51:16,001 --> 06:51:22,000 MORTGAGES WRITTEN IN THE FIRST 9181 06:51:22,001 --> 06:51:25,000 QUARTER THIS YEAR WERE BKED BY 9182 06:51:25,001 --> 06:51:26,000 SOME TYPE OF GOVERNMENT 9183 06:51:26,001 --> 06:51:29,000 GUARANTEE. 9184 06:51:29,001 --> 06:51:32,000 UNTIL WE RESOLVE THE FUTURE OF 9185 06:51:32,001 --> 06:51:35,000 THESE ENTITIES, THE PRIVATE 9186 06:51:35,001 --> 06:51:38,000 MORTGAGE MARKET WILL NOT RETURN, 9187 06:51:38,001 --> 06:51:42,000 AND THE RISK TO THE TAXPAYERS 9188 06:51:42,001 --> 06:51:43,000 WILL CONTINUE TO INCREASE. 9189 06:51:43,001 --> 06:51:46,000 AS I MENTIONED AT THE BEGINNING 9190 06:51:46,001 --> 06:51:49,000 OF MY STATEMENT, THIS BILL IS 9191 06:51:49,001 --> 06:51:52,000 GOING TO HAVE REAL CONSEQUENCES 9192 06:51:52,001 --> 06:51:55,000 FOR THE ECONOMY AT A TIME WHEN 9193 06:51:55,001 --> 06:51:57,000 THE RECOVERY IS LOOKING MORE 9194 06:51:57,001 --> 06:52:00,000 LIKE A SECOND DIP OF A 9195 06:52:00,001 --> 06:52:02,000 RECESSION. 9196 06:52:02,001 --> 06:52:04,000 COMBINED WITH THE TAX INCREASES 9197 06:52:04,001 --> 06:52:07,000 THAT WILLAKE EFFECT AT THE END 9198 06:52:07,001 --> 06:52:12,000 OF THIS YEAR, I AM AFRAID WE 9199 06:52:12,001 --> 06:52:15,000 WILL NOT SEE REAL RECOVERY UNTIL 9200 06:52:15,001 --> 06:52:17,000 2012 OR LATER. 9201 06:52:17,001 --> 06:52:21,000 ONE WAY THIS BILL IS GOING TO 9202 06:52:21,001 --> 06:52:23,000 AFFECT THE ECONOMY IS BY 9203 06:52:23,001 --> 06:52:26,000 INCREASED CONSUMER PROTECTION 9204 06:52:26,001 --> 06:52:28,000 REGULATION THAT WILL REDUCE THE 9205 06:52:28,001 --> 06:52:31,000 AVAILABILITY OF CREDIT FOR BANKS 9206 06:52:31,001 --> 06:52:36,000 AND OTHER FIRMS THAT HAD NOTHING 9207 06:52:36,001 --> 06:52:39,000 TO DO WITH THE FINANCIAL CRISIS. 9208 06:52:39,001 --> 06:52:40,000 ANOTHER WAY WAS HIGHLIGHTED IN A 9209 06:52:40,001 --> 06:52:43,000 FRONT-PAGE ARTICLE IN THE "WALL 9210 06:52:43,001 --> 06:52:47,000 STREET JOURNAL" YESTERDAY ON THE 9211 06:52:47,001 --> 06:52:50,000 IMPACT OF THE DERIVATIVE 9212 06:52:50,001 --> 06:52:51,000 REGULATIONS IN THE BILL ON 9213 06:52:51,001 --> 06:52:54,000 FARMERS. 9214 06:52:54,001 --> 06:52:57,000 I HAVE BEEN AS CRITIL AS 9215 06:52:57,001 --> 06:53:02,000 ANYONE OF THE LACK OF REGULATION 9216 06:53:02,001 --> 06:53:06,000 OF DRIVIVES, WHICH WAS AGAIN 9217 06:53:06,001 --> 06:53:10,000 LARGELY THANKS TO ARE AL.A.N. 9218 06:53:10,001 --> 06:53:12,000 GREENSPAN AND I THINK WE NEED -- 9219 06:53:12,001 --> 06:53:15,000 LARGELY THANKS TO ALAN GREENSPAN 9220 06:53:15,001 --> 06:53:19,000 AND I ANY WE NEED MORE REGULATION. 9221 06:53:19,001 --> 06:53:22,000 BUT THE BILL GOES TOO FAR IN ITS 9222 06:53:22,001 --> 06:53:25,000 IMPACT ON THE ORDINARY END USERS 9223 06:53:25,001 --> 06:53:28,000 WHO ARE USING DERIVATIVES TO 9224 06:53:28,001 --> 06:53:33,000 HEDGE COMMODITY COSTS OR 9225 06:53:33,001 --> 06:53:36,000 INTEREST RATES AND CURRENT RISK. 9226 06:53:36,001 --> 06:53:45,000 THE WALL STREET CASINO SHUT DOWN. 9227 06:53:45,001 --> 06:53:47,000 BILL INTO SHOULD NOT 9228 06:53:47,001 --> 06:53:50,000 PREVENT RESPONSIBLE BUYING. 9229 06:53:50,001 --> 06:53:52,000 I HAVE MANY, MANY OTHER CONCERNS 9230 06:53:52,001 --> 06:53:54,000 ABOUT THIS BILL THAT I HAVE 9231 06:53:54,001 --> 06:53:56,000 DISCUSSED IN THE PAST ON THIS 9232 06:53:56,001 --> 06:53:57,000 FLOOR AND IN THE BANKING 9233 06:53:57,001 --> 06:54:00,000 COMMITTEE. 9234 06:54:00,001 --> 06:54:02,000 THE BILL RETURNED BY THE 9235 06:54:02,001 --> 06:54:05,000 COMMERCE COMMITTEE WILL NOT 9236 06:54:05,001 --> 06:54:07,000 SOLVE THE PROBLEMS IN OUR 9237 06:54:07,001 --> 06:54:10,000 FINANCIAL 9238 06:54:10,001 --> 06:54:12,000 IT IS A 9239 06:54:12,001 --> 06:54:15,000 WITHOUT REFORM. 9240 06:54:15,001 --> 06:54:17,000 I HAD HOPED WE COULD WORK 9241 06:54:17,001 --> 06:54:20,000 TOGETHER IN A BIPARTISAN WAY TO 9242 06:54:20,001 --> 06:54:22,000 COE A BILL THAT ENDS -- TO 9243 06:54:22,001 --> 06:54:23,000 CRAFT A BILL THAT ENDS TOO BIG 9244 06:54:23,001 --> 06:54:24,000 TO FAIL FOREVER. 9245 06:54:24,001 --> 06:54:26,000 BUT THIS IS A HIGHLY PARTISAN 9246 06:54:26,001 --> 06:54:27,000 BILL THAT WILL ACCOMPLISH 9247 06:54:27,001 --> 06:54:30,000 LITTLE. 9248 06:54:30,001 --> 06:54:34,000 AND ONE OF THE CHIEF, CHIEF 9249 06:54:34,001 --> 06:54:36,000 AUTHORS OF THE BILL, CHAIRMAN 9250 06:54:36,001 --> 06:54:39,000 DODD, ADMITS THAT EVEN HE DOES 9251 06:54:39,001 --> 06:54:41,000 NOT KNOW HOW THE BILL WILL WORK 9252 06:54:41,001 --> 06:54:43,000 AND WON'T UNTIL AFTER IT IS IN 9253 06:54:43,001 --> 06:54:46,000 PLACE. 9254 06:54:46,001 --> 06:54:48,000 THE VERY AUTHOR OF THE BILL HAS 9255 06:54:48,001 --> 06:54:52,000 SAID THAT. 9256 06:54:52,001 --> 06:54:55,000 IN THE END, THE BILL GIVES SO 9257 06:54:55,001 --> 06:54:58,000 MUCH DESCRIPTION -- DISCRETION 9258 06:54:58,001 --> 06:55:02,000 TO THE FEDERAL RESERVE THAT THE 9259 06:55:02,001 --> 06:55:05,000 BEST DESCRIPTION OF THE NEW 9260 06:55:05,001 --> 06:55:08,000 REGULATIONS IS THEY ARE WHAT THE 9261 06:55:08,001 --> 06:55:13,000 FED SAY THEY ARE. 9262 06:55:13,001 --> 06:55:15,000 OR TO BORROW THE TITLE OF DAVID 9263 06:55:15,001 --> 06:55:20,000 WESTLES'S RECENT BOOK, "IT CAN 9264 06:55:20,001 --> 06:55:23,000 BE DISCRETE AS IN FED WE TRUST." 9265 06:55:23,001 --> 06:55:25,000 WE SAW HOW WELL THAT WORKED 9266 06:55:25,001 --> 06:55:29,000 LAST TIME. 9267 06:55:29,001 --> 06:55:33,000 I CAN'T UNDERSTAND WHY ANYONE 9268 06:55:33,001 --> 06:55:35,000 EXPECTS IT WILL WORK BERL BETTER THIS TIME. 9269 06:55:35,001 --> 06:55:58,000 I THANK THE CHAIRWOMAN, AND I 9270 06:55:58,001 --> 06:55:59,000 MADAM CHAIRWOMAN, I SAY THAT A 9271 06:55:59,001 --> 06:56:00,000 REQUEST A CALL FOR A QUORUM. 9272 06:56:00,001 --> 06:56:06,000 THE PRESIDING OFFICER: THE 9273 06:56:06,001 --> 06:59:36,000 CLERK WILL CALL THE ROLL. 9274 06:59:36,001 --> 07:05:45,000 QUORUM CALL: 9275 07:05:45,001 --> 07:05:47,000 QUORUM CALL: THE PRESIDING OFFICER: THE 9276 07:05:47,001 --> 07:05:49,000 SENATOR FROM GEORGIA. 9277 07:05:49,001 --> 07:05:50,000 KHAPL WHAT IS THE CURRENT STAT 9278 07:05:50,001 --> 07:05:51,000 -- 9279 07:05:51,001 --> 07:05:52,000 MR. CHAMBLISS: WHAT IS THE 9280 07:05:52,001 --> 07:05:53,000 CURRENT STATUS OF THE SENATE? 9281 07:05:53,001 --> 07:05:56,000 THE PRESIDING OFFICER: THE 9282 07:05:56,001 --> 07:05:57,000 SENATE IS IN A QUORUM CALL. 9283 07:05:57,001 --> 07:05:58,000 MR. CHAMBLISS: I WOULD ASK 9284 07:05:58,001 --> 07:05:59,000 THAT THE QUORUM CALL BE 9285 07:05:59,001 --> 07:06:00,000 DISPENSED WITH. 9286 07:06:00,001 --> 07:06:01,000 THE PRESIDING OFFICER: WITHOUT OBJECTION. 9287 07:06:01,001 --> 07:06:02,000 MR. CHAMBLISS: I RISE TODAY TO 9288 07:06:02,001 --> 07:06:04,000 URGE MY COLLEAGUES TO JOIN ME, 9289 07:06:04,001 --> 07:06:06,000 AND MY COLLEAGUE FROM GEORGIA, 9290 07:06:06,001 --> 07:06:08,000 SENATOR ISAKSON IN HONORING THE 9291 07:06:08,001 --> 07:06:10,000 LIFE AND COMMITMENT OF FIRST 9292 07:06:10,001 --> 07:06:12,000 LIEUTENANT ROBERT COLLINS OF 9293 07:06:12,001 --> 07:06:13,000 TYRONE, GEORGIA. 9294 07:06:13,001 --> 07:06:17,000 LIEUTENANT COLLINS GREW UP IN 9295 07:06:17,001 --> 07:06:19,000 THE SMALL TOWN OF TYRONE IN 9296 07:06:19,001 --> 07:06:21,000 FAYETTE COUNTY WHERE HE ATTENDED 9297 07:06:21,001 --> 07:06:22,000 SANDY CREEK, GH SCHOOL, PLAYED 9298 07:06:22,001 --> 07:06:26,000 FOOTBALL ON FRIDAY NIGHTS WHERE 9299 07:06:26,001 --> 07:06:28,000 HE BECAME A STANDOUT STUDENT. 9300 07:06:28,001 --> 07:06:33,000 THEY WOULD TAKE HIM TO THE HALLS 9301 07:06:33,001 --> 07:06:35,000 OF WEST POINT WHERE HE ATTENDED 9302 07:06:35,001 --> 07:06:36,000 CHURCH WITH HIS FAMIL EVERY 9303 07:06:36,001 --> 07:06:38,000 SUNDAY MORNING. 9304 07:06:38,001 --> 07:06:39,000 ON THE 7th OF APRIL, 2010, 9305 07:06:39,001 --> 07:06:43,000 LIEUTENANT COLLINS MADE THE 9306 07:06:43,001 --> 07:06:47,000 ULTIMATE SACRIFICE WHEN AN 9307 07:06:47,001 --> 07:06:50,000 IMPROVISED KPHROE SEIVE -- 9308 07:06:50,001 --> 07:06:52,000 SKPHROE -- EXPLOSIVE DEVICE 9309 07:06:52,001 --> 07:06:53,000 DETONATED ON THE STREETS IN 9310 07:06:53,001 --> 07:06:55,000 IRAQ. 9311 07:06:55,001 --> 07:06:57,000 HE WAS 24 YEARS OLD. 9312 07:06:57,001 --> 07:06:59,000 LIEUTENANT COLLINS GRADUATED 9313 07:06:59,001 --> 07:07:03,000 FROM WEST POINT IN 2008, BECAME 9314 07:07:03,001 --> 07:07:06,000 AN OFFICER IN B-COMPANY, 1st 9315 07:07:06,001 --> 07:07:08,000 BATTALION, 64th REGIMENT OF 9316 07:07:08,001 --> 07:07:12,000 THE ARMY UNIT BASED IN FORT 9317 07:07:12,001 --> 07:07:14,000 STUART, GEORGIA HE DEPLOYED TO 9318 07:07:14,001 --> 07:07:16,000 IRAQ IN THE AUTUMN PERIOD OF 2009. 9319 07:07:16,001 --> 07:07:17,000 LIEUTENANT COLLINS SERVED AS HIS 9320 07:07:17,001 --> 07:07:19,000 PLATOON'S COMMANDER AND WHILE IN 9321 07:07:19,001 --> 07:07:20,000 IRAQ HIS UNIT WAS CHARGED WITH 9322 07:07:20,001 --> 07:07:22,000 IMPROVING SECURITY AND THE 9323 07:07:22,001 --> 07:07:24,000 QUALITY OF LIFE FOR THE IRAQI PEOPLE. 9324 07:07:24,001 --> 07:07:25,000 HE AND HIS MEN ALSO PROVIDED 9325 07:07:25,001 --> 07:07:27,000 SECURITY FOR THE RECENT 9326 07:07:27,001 --> 07:07:29,000 SUCCESSFUL IRAQI ELECTIONS. 9327 07:07:29,001 --> 07:07:30,000 THEY WERE DEDICATED TO THE GOAL 9328 07:07:30,001 --> 07:07:33,000 OF A DEMOCRATIC IRAQ AND SOUGHT 9329 07:07:33,001 --> 07:07:35,000 TO HELP ITS PEOPLE LEAD NORMAL, 9330 07:07:35,001 --> 07:07:36,000 SAFE LIVES. 9331 07:07:36,001 --> 07:07:39,000 ROBERT'S FRIENDS HAVE DESCRIBED 9332 07:07:39,001 --> 07:07:41,000 HIM AS A MAN OF GREAT COMPASSION. 9333 07:07:41,001 --> 07:07:44,000 HE WAS A NATURAL LEADER WHO 9334 07:07:44,001 --> 07:07:46,000 TRULY FOUND A CALLING IN THE 9335 07:07:46,001 --> 07:07:48,000 NOR AND PATRIOTISM OF SERVICE 9336 07:07:48,001 --> 07:07:50,000 IN THE UNITED STATES ARMY. 9337 07:07:50,001 --> 07:07:52,000 HE'S BEEN DESCRIBED BY HIS 9338 07:07:52,001 --> 07:07:54,000 SUPERIORS AS A YOUNG MAN WHO 9339 07:07:54,001 --> 07:07:56,000 PERFORMED HIS DUTIES 9340 07:07:56,001 --> 07:07:58,000 COURAGEOUSLY WITHOUT HESITATION 9341 07:07:58,001 --> 07:08:00,000 AND WITHOUT RESERVATIONS. 9342 07:08:00,001 --> 07:08:02,000 BECAUSE, AFTER ALL, HE WAS A 9343 07:08:02,001 --> 07:08:04,000 SOLDIER IN THE UNITED STATES ARMY. 9344 07:08:04,001 --> 07:08:06,000 AS A SMALL TOKEN OF GRATITUDE 9345 07:08:06,001 --> 07:08:08,000 AND REMEMBRANCE FOR THE ULTIMATE 9346 07:08:08,001 --> 07:08:10,000 SACRIFICE PAID BY LIEUTENANT 9347 07:08:10,001 --> 07:08:12,000 COLLINS, I'M PLEASED TO JOIN 9348 07:08:12,001 --> 07:08:13,000 SENATORSAKSON IN URGING OUR 9349 07:08:13,001 --> 07:08:16,000 COLLEAGUES TO RENAME THE POST 9350 07:08:16,001 --> 07:08:19,000 OFFICE IN TYRONE, GEORGIA, AS 9351 07:08:19,001 --> 07:08:20,000 THE FIRST LIEUTENANT ROBERT 9352 07:08:20,001 --> 07:08:22,000 WILSON COLLINS POST OFFICE 9353 07:08:22,001 --> 07:08:23,000 BUILDING IN LIEUTENANT COLLINS' 9354 07:08:23,001 --> 07:08:25,000 HONOR. 9355 07:08:25,001 --> 07:08:26,000 NOTHING WE CAN DO CAN EVER REPAY 9356 07:08:26,001 --> 07:08:28,000 THE DEBT AND THE ULTIMATE 9357 07:08:28,001 --> 07:08:29,000 SACRIFICE THAT THIS YOUNG MAN 9358 07:08:29,001 --> 07:08:30,000 HAS MADE. 9359 07:08:30,001 --> 07:08:33,000 BUT THIS WILL ENSURE THAT HIS 9360 07:08:33,001 --> 07:08:35,000 NAME LIVES ON NOT JUST IN HIS 9361 07:08:35,001 --> 07:08:37,000 FRIENDS' AND FAMILIES' HEARTS 9362 07:08:37,001 --> 07:08:38,000 T IN THE VERY HEART OF HIS HOMETOWN. 9363 07:08:38,001 --> 07:08:39,000 WITH THAT, MADAM PRESIDENT, I 9364 07:08:39,001 --> 07:08:41,000 WOULD YIELD THE FLOOR TO MY 9365 07:08:41,001 --> 07:08:48,000 KHRAOERBGS SENATOR ISAAC 9366 07:08:48,001 --> 07:08:49,000 MY COLLEAGUE, SENATOR ISAKSON. 9367 07:08:49,001 --> 07:08:50,000 MR. ISAKSON: MADAM PRESIDENT, 9368 07:08:50,001 --> 07:08:52,000 I'M PLEASED TO JOIN THE SENIOR 9369 07:08:52,001 --> 07:08:55,000 SENATOR FROM GEORGIA AND MY 9370 07:08:55,001 --> 07:08:59,000 FRIEND, SAXBY CHAMBLISS, TO PAY 9371 07:08:59,001 --> 07:09:01,000 TRIBUTE TODAY TO ROBERT COLLINS. 9372 07:09:01,001 --> 07:09:03,000 THIS NAMING OF THE POST OFFICE 9373 07:09:03,001 --> 07:09:04,000 IS MOST APPROPRIATE IN TYRONE, 9374 07:09:04,001 --> 07:09:05,000 GEORGIA, AND IT'S MOST 9375 07:09:05,001 --> 07:09:08,000 APPROPRIATE BECAUSE OF THE GREAT 9376 07:09:08,001 --> 07:09:09,000 SACRIFICE OF THIS YOUNG MAN 9377 07:09:09,001 --> 07:09:11,000 WHOSE STORY, AS SENATOR 9378 07:09:11,001 --> 07:09:13,000 CHAMBLISS SAID, IS COMPELLING. 9379 07:09:13,001 --> 07:09:14,000 BUT ONE INTERESTING POINT I WANT 9380 07:09:14,001 --> 07:09:19,000 TO MAKE IS HE WAS THE SON OF TWO 9381 07:09:19,001 --> 07:09:20,000 LIEUTENANT COLONELS RETIRED FROM 9382 07:09:20,001 --> 07:09:23,000 THE UNITED STATES MILITARY. 9383 07:09:23,001 --> 07:09:25,000 HIS MOTHER, LIEUTENANT COLONEL 9384 07:09:25,001 --> 07:09:28,000 SHARON L.G. COLLINS AND HIS 9385 07:09:28,001 --> 07:09:29,000 FATHER LIEUTENANT COLONEL 9386 07:09:29,001 --> 07:09:30,000 BURKETT DEACON COLLINS. 9387 07:09:30,001 --> 07:09:33,000 HIS MOTHER SAID WE NEVER ASKED 9388 07:09:33,001 --> 07:09:34,000 HIM TO FOLLOW US INTO THE FAMILY 9389 07:09:34,001 --> 07:09:36,000 BUSINESS BEING IN THE MILITARY, 9390 07:09:36,001 --> 07:09:37,000 BUT HE DID -L FOLLOW US INTO THE 9391 07:09:37,001 --> 07:09:41,000 FAMILY BUSINESS IN LARGE MEASURE 9392 07:09:41,001 --> 07:09:43,000 BECAUSE OF WHAT HAPPENED ON 9/11. 9393 07:09:43,001 --> 07:09:44,000 FOLLOWING THAT TRAGIC DAY IN 9394 07:09:44,001 --> 07:09:46,000 AMERICAN HISTORY WHEN HE WATCHED 9395 07:09:46,001 --> 07:09:48,000 THE TERRORIST ATTACKS ON THE 9396 07:09:48,001 --> 07:09:49,000 TWIN TOWERS, HE EXPRESSED TO HIS 9397 07:09:49,001 --> 07:09:50,000 PARENTS A DIRE TO JOIN THE 9398 07:09:50,001 --> 07:09:52,000 UNITED STATES MILITARY. 9399 07:09:52,001 --> 07:09:55,000 HIS MOTHER RESPONDED ALONG WITH 9400 07:09:55,001 --> 07:09:57,000 HIS FATHER BY MAKING IT A POINT 9401 07:09:57,001 --> 07:09:59,000 FOR HIM TO VISIT WEST POINT. 9402 07:09:59,001 --> 07:10:02,000 THEY TKREFD HIM UP IN HIS VERY 9403 07:10:02,001 --> 07:10:04,000 BEST OFIT AND TOOK HIM TO WEST POINT. 9404 07:10:04,001 --> 07:10:06,000 UPON LEAVING TYRONE, ONE OF HIS 9405 07:10:06,001 --> 07:10:08,000 FRIENDS STOPPED HIM BEFORE HE 9406 07:10:08,001 --> 07:10:09,000 GOT IN THE CAR TO GO TO WEST 9407 07:10:09,001 --> 07:10:10,000 POINT AND SAID WHY ARE YOU 9408 07:10:10,001 --> 07:10:13,000 DRESSED UP SO WELL? 9409 07:10:13,001 --> 07:10:14,000 HE SAID BAUSE MY MOM AND DAD 9410 07:10:14,001 --> 07:10:16,000 ARE COLONELS. 9411 07:10:16,001 --> 07:10:18,000 THAT'S THE KIND OF MAN HE WAS. 9412 07:10:18,001 --> 07:10:20,000 SO HE APPLIED TO WEST POINT. 9413 07:10:20,001 --> 07:10:23,000 SENATOR CHAMBLISS APPOINTED HIM 9414 07:10:23,001 --> 07:10:24,000 TO WEST POINT AND HE WAS THERE 9415 07:10:24,001 --> 07:10:26,000 WITH DISTINCTION. 9416 07:10:26,001 --> 07:10:27,000 LATER IN 2009, HE WENT OFF TO 9417 07:10:27,001 --> 07:10:28,000 SERVE IN THE UNITED STATES 9418 07:10:28,001 --> 07:10:30,000 MILITARY. 9419 07:10:30,001 --> 07:10:31,000 UNFORTUNATELY ON APRIL 7, MADE 9420 07:10:31,001 --> 07:10:32,000 THE ULTIMATE SACRIFICE FOR THE 9421 07:10:32,001 --> 07:10:34,000 PEOPLE OF THIS COUNTRY. 9422 07:10:34,001 --> 07:10:35,000 IT IS ONLY APPROPRIATE IN EVERY 9423 07:10:35,001 --> 07:10:38,000 WAY POSSIBLE THAT WE PAY TRIBUTE 9424 07:10:38,001 --> 07:10:39,000 TO THE YOUNG MEN AND YOUNG WOMEN 9425 07:10:39,001 --> 07:10:41,000 WHO SACRIFICE ALL SO ALL OF US 9426 07:10:41,001 --> 07:10:42,000 CAN ENJOY THE FREEDOM OF OUR COUNTRY. 9427 07:10:42,001 --> 07:10:44,000 AND I AM PLEASED AND I AM 9428 07:10:44,001 --> 07:10:46,000 HONORED AND I AM PROUD TODAY TO 9429 07:10:46,001 --> 07:10:48,000 JOIN SENATOR CHAMBLISS IN NAMING 9430 07:10:48,001 --> 07:10:49,000 THIS POST OFFICE IN TYRONE, 9431 07:10:49,001 --> 07:10:52,000 GEORGIA, AFTER FIRST LIEUTENANT 9432 07:10:52,001 --> 07:10:54,000 COLLINS WHO WAS A MEMBER OF 9433 07:10:54,001 --> 07:10:57,000 B-COMPANY, FIRST BATTALION, 9434 07:10:57,001 --> 07:10:58,000 64th REGIMENT, FORT STUART, 9435 07:10:58,001 --> 07:11:00,000 GEORGIA AND I YIELD BACK THE 9436 07:11:00,001 --> 07:11:01,000 BALANCE OF MY TIME 9437 07:11:01,001 --> 07:11:08,000 ABSENCE OF A QUORUM. THE PRESIDING OFFICER: THE 9438 07:11:08,001 --> 07:14:25,000 CLERK WILL CALL TH 9439 07:14:25,001 --> 07:27:12,000 QUORUM CALL: 9440 07:27:12,001 --> 07:34:37,000 QUORUM CALL: 9441 07:34:37,001 --> 07:34:40,000 QUORUM CALL: 9442 07:34:40,001 --> 07:34:41,000 A SENATOR: MADAM PRESIDENT? 9443 07:34:41,001 --> 07:34:43,000 THE PRESIDING OFFICER: THE 9444 07:34:43,001 --> 07:34:44,000 SENATOR FROM ALASKA. 9445 07:34:44,001 --> 07:34:45,000 MS. MURKOWSKI: THANK YOU, MADAM PRESIDENT. 9446 07:34:45,001 --> 07:34:48,000 MADAM PRESIDENT, THIS HAS BEEN A 9447 07:34:48,001 --> 07:34:49,000 VERY DIFFICULT WEEK FOR OUR -- 9448 07:34:49,001 --> 07:34:52,000 THE PRESIDING OFFICER: THE 9449 07:34:52,001 --> 07:34:54,000 SENATE IS IN A QUORUM CALL. 9450 07:34:54,001 --> 07:34:55,000 MRS. MURK: EXCUSE ME, MADAM PRESIDENT. 9451 07:34:55,001 --> 07:34:57,000 I REQUEST THAT PROCEEDINGS UNDER 9452 07:34:57,001 --> 07:34:58,000 THE QUORUM CALL BE DISPENSED WITH. 9453 07:34:58,001 --> 07:34:59,000 THE PRESIDING OFFICER: WITHOUT 9454 07:34:59,001 --> 07:35:00,000 OBJECTION. 9455 07:35:00,001 --> 07:35:01,000 MS. MURKOWSKI: THANK YOU. 9456 07:35:01,001 --> 07:35:03,000 AS I MENTIONED, THIS HAS BEEN A 9457 07:35:03,001 --> 07:35:05,000 VERY DIFFICULT WEEK FOR OUR 9458 07:35:05,001 --> 07:35:06,000 MILITARY AND FOR OUR VETERANS' 9459 07:35:06,001 --> 07:35:11,000 COMMUNITIES IN THE STATE OF ALASKA. 9460 07:35:11,001 --> 07:35:12,000 ON TUESDAY OF THIS WEEK, WE CAME 9461 07:35:12,001 --> 07:35:14,000 TOGETHER AT THE COAST GUARD AIR 9462 07:35:14,001 --> 07:35:16,000 STATION TO HONOR THE MEMORY OF 9463 07:35:16,001 --> 07:35:17,000 THREE MEMBERS OF THE UNITED 9464 07:35:17,001 --> 07:35:19,000 STATES COAST GUARD WHO GAVE 9465 07:35:19,001 --> 07:35:25,000 THEIR LIVES IN A VERY, VERY 9466 07:35:25,001 --> 07:35:28,000 TRAGIC ACCIDENT, CRASH OF AN 9467 07:35:28,001 --> 07:35:29,000 H-60 JAYHAWK HELICOPTER. 9468 07:35:29,001 --> 07:35:31,000 THIS WAS OFF THE COAST OF 9469 07:35:31,001 --> 07:35:32,000 WAINGTON JULY 7. 9470 07:35:32,001 --> 07:35:36,000 A REAL TRAGEDY FOR THE COAST 9471 07:35:36,001 --> 07:35:40,000 GUARD FAMILIES AS A WHOLE, THE 9472 07:35:40,001 --> 07:35:41,000 COMMUNITY OF SITKA IS ONE THAT 9473 07:35:41,001 --> 07:35:42,000 TRULY EMBRACES THE MEN AND WOMEN 9474 07:35:42,001 --> 07:35:46,000 OF THE COAST GUARD IN ADDITION 9475 07:35:46,001 --> 07:35:47,000 TO BEING THE ONES THAT PLUCK THE 9476 07:35:47,001 --> 07:35:54,000 FISHERMEN OUT OF THE SEA WHEN 9477 07:35:54,001 --> 07:35:56,000 THEY ARE IN JEOPARDY OR AT RISK. 9478 07:35:56,001 --> 07:35:57,000 THESE ARE THE MEN AND WOMEN 9479 07:35:57,001 --> 07:35:59,000 HELPING AT THE LOCAL CHURCHES, 9480 07:35:59,001 --> 07:36:00,000 HELPING WITH THE BOY SCOUTS, 9481 07:36:00,001 --> 07:36:03,000 COACHING KIDS AND TRULY MEMBERS 9482 07:36:03,001 --> 07:36:04,000 OF OUR COMMUNITY, SO THE LOSS OF 9483 07:36:04,001 --> 07:36:05,000 THESE THREE MEN IS REALLY VERY 9484 07:36:05,001 --> 07:36:09,000 PAINFUL FOR US ALL. 9485 07:36:09,001 --> 07:36:12,000 I ATTENDED THAT CEREMONY ON 9486 07:36:12,001 --> 07:36:15,000 TUESDAY AT THE HANGAR IN SITKA, 9487 07:36:15,001 --> 07:36:17,000 AND AFTER I LEFT, I TOOK THE 9488 07:36:17,001 --> 07:36:21,000 FLIGHT BACK TO WASHINGTON, D.C., 9489 07:36:21,001 --> 07:36:24,000 TOOK THE READEYE, AND WHEN I 9490 07:36:24,001 --> 07:36:25,000 ARRIVED HERE ON WEDNESDAY 9491 07:36:25,001 --> 07:36:27,000 MORNING, IAS INFORMED OF THE 9492 07:36:27,001 --> 07:36:29,000 PASSING OF A VERY DEAR FRIEND OF 9493 07:36:29,001 --> 07:36:31,000 MINE, A GENTLEMAN WHO MADE A 9494 07:36:31,001 --> 07:36:34,000 PROFOUND CONTRIBUTION TO THE 9495 07:36:34,001 --> 07:36:35,000 LIVES OF SO MANY OF ALASKA'S 9496 07:36:35,001 --> 07:36:36,000 VETERANS. 9497 07:36:36,001 --> 07:36:39,000 I'M SPEAKING TODAY OF AN 9498 07:36:39,001 --> 07:36:42,000 INDIVIDUAL BY THE NAME OF MAURICE BAILEY. 9499 07:36:42,001 --> 07:36:44,000 WE CALLED HIM MO. 9500 07:36:44,001 --> 07:36:46,000 MO WAS FROM WASILLA, ALASKA. 9501 07:36:46,001 --> 07:36:49,000 HE WAS A DISABLED VIETNAM-ERA 9502 07:36:49,001 --> 07:36:51,000 VETERAN WHO FOUGHT THE V.A. 9503 07:36:51,001 --> 07:36:53,000 BUREAUCRACY TO OBTAIN HIS EARNED BENEFITS. 9504 07:36:53,001 --> 07:36:55,000 AND HE FOUGHT FOR HIMSELF AND HE 9505 07:36:55,001 --> 07:36:59,000 WAS SUCCESSFUL WITH THAT, BUT HE 9506 07:36:59,001 --> 07:37:01,000 WENT ON BEYOND THAT. 9507 07:37:01,001 --> 07:37:02,000 HE DEVOTED THE REST OF HIS LIFE 9508 07:37:02,001 --> 07:37:04,000 TO ENSURING THAT THE CHALLENGES 9509 07:37:04,001 --> 07:37:07,000 OF ALASKA'S VETERANS WERE NOT FORGOTTEN. 9510 07:37:07,001 --> 07:37:09,000 HE FOCUSED HIS EFFORTS ON THOSE 9511 07:37:09,001 --> 07:37:10,000 VETERANS WHO LIVE IN THE MORE 9512 07:37:10,001 --> 07:37:13,000 THAN 200 RURAL COMMUNITIES THAT 9513 07:37:13,001 --> 07:37:15,000 ARE NOT CONNECTED BY -- BY ROAD 9514 07:37:15,001 --> 07:37:16,000 TO THE REST OF ALASKA OR 9515 07:37:16,001 --> 07:37:19,000 CERTAINLY TO THE CONTINENTAL UNITED STATES. 9516 07:37:19,001 --> 07:37:20,000 THESE ARE THE COMMUNITIES OF 9517 07:37:20,001 --> 07:37:25,000 BUSH ALASKA. 9518 07:37:25,001 --> 07:37:27,000 IN 2003, MO FOUNDED THE VETERANS AVIATION OUTREACH. 9519 07:37:27,001 --> 07:37:29,000 THIS IS AN ORGANIZATION OF 9520 07:37:29,001 --> 07:37:33,000 VOLUNTEER PILOTS THAT TRAVELED 9521 07:37:33,001 --> 07:37:34,000 TO RURAL ALASKA AND IN THE 9522 07:37:34,001 --> 07:37:36,000 COMMUNITIES THAT ARE HUNDREDS 9523 07:37:36,001 --> 07:37:38,000 AND HUNDREDS OF MILES FROM THE 9524 07:37:38,001 --> 07:37:41,000 NEAREST V.A. FACILITY, AND HE 9525 07:37:41,001 --> 07:37:44,000 AND HIS OTHER VOLUNTEERS DID 9526 07:37:44,001 --> 07:37:45,000 WHAT THE V.A. SIMPLY WAS NOT 9527 07:37:45,001 --> 07:37:47,000 DOING. 9528 07:37:47,001 --> 07:37:49,000 THEY -- THEY SOUGHT OUT THOSE 9529 07:37:49,001 --> 07:37:51,000 FORGOTTEN VETERANS AND REALLY 9530 07:37:51,001 --> 07:37:53,000 HELPED THEM IN EVERY WAY THAT 9531 07:37:53,001 --> 07:37:55,000 THEY POSSIBLY COULD, AND WHEN 9532 07:37:55,001 --> 07:37:57,000 YOU -- WHEN YOU LISTEN TO THE 9533 07:37:57,001 --> 07:38:01,000 STORIES ABOUT WHAT MO DID AND 9534 07:38:01,001 --> 07:38:02,000 THE VETERANS AVIATION OUTREACH 9535 07:38:02,001 --> 07:38:03,000 GROUP DID, IT WAS -- IT WAS A 9536 07:38:03,001 --> 07:38:07,000 LITTLE BIT OF EVERYTHING. 9537 07:38:07,001 --> 07:38:09,000 THEY HELPED THE VETERANS FILL 9538 07:38:09,001 --> 07:38:10,000 OUT APPLICATIONS FOR THEIR BENEFITS. 9539 07:38:10,001 --> 07:38:13,000 OFTENTIMES, IT MEANT 9540 07:38:13,001 --> 07:38:14,000 VOLUNTEERING TO FLY A VETERAN TO 9541 07:38:14,001 --> 07:38:15,000 ANCHORAGE FOR A MEDICAL 9542 07:38:15,001 --> 07:38:19,000 APPOINTMENT OR PERHAPS RAISING 9543 07:38:19,001 --> 07:38:20,000 THE MONEY FOR AN AIRPLANE TICKET. 9544 07:38:20,001 --> 07:38:22,000 AND IN SO MANY OF OUR VERY 9545 07:38:22,001 --> 07:38:24,000 RURA VERY REMOTE COMMUNITIES, 9546 07:38:24,001 --> 07:38:25,000 AGAIN, THERE IS NO ROAD, YOU 9547 07:38:25,001 --> 07:38:29,000 DON'T GET IN YOUR CAR AND DRIVE. 9548 07:38:29,001 --> 07:38:31,000 AND SO FOR THE VETERAN TO GO FOR 9549 07:38:31,001 --> 07:38:32,000 CARE, THEY MAY BE TRAVELING 9550 07:38:32,001 --> 07:38:34,000 HUNDREDS OF MILES. 9551 07:38:34,001 --> 07:38:36,000 THEY DON'T HAVE THE MONEY TO DO SO. 9552 07:38:36,001 --> 07:38:39,000 SO MO WOULD BRING HIS GUYS 9553 07:38:39,001 --> 07:38:41,000 TOGETHER OR HE WOULD GET IN HIS 9554 07:38:41,001 --> 07:38:44,000 PLANE AND HE WOULD FLY OUT THERE 9555 07:38:44,001 --> 07:38:46,000 AND HE WOULD PICK HIM UP. 9556 07:38:46,001 --> 07:38:50,000 SOMETIMES THE HELP MEANT 9557 07:38:50,001 --> 07:38:51,000 DELIVERING MOOSE MEAT, CLEARLY A 9558 07:38:51,001 --> 07:38:52,000 VERY DESIRED FOODTAPLE IN 9559 07:38:52,001 --> 07:38:54,000 RURAL ALASKA. 9560 07:38:54,001 --> 07:38:55,000 SOMETIMES IT MEANT BUILDING A 9561 07:38:55,001 --> 07:38:56,000 WHEELCHAIR RAMP IN A VETERAN'S 9562 07:38:56,001 --> 07:38:58,000 HOME. 9563 07:38:58,001 --> 07:38:59,000 THIS WAS AN ALL-VOLUNTEER 9564 07:38:59,001 --> 07:39:01,000 OPERATION. 9565 07:39:01,001 --> 07:39:03,000 IT FUNCTIONED ON RAFFLES AND 9566 07:39:03,001 --> 07:39:05,000 BAKE SALES AND REALLY ALL TOO 9567 07:39:05,001 --> 07:39:07,000 OFTEN MONEY STRAIGHT FROM THE 9568 07:39:07,001 --> 07:39:10,000 POCKETS OF ITS OWN VOLUNTEERS. 9569 07:39:10,001 --> 07:39:11,000 WE ARE A STATE THAT REVEERS ALL 9570 07:39:11,001 --> 07:39:14,000 OF OUR VETERANS IN ALASKA. 9571 07:39:14,001 --> 07:39:15,000 WE'RE HOME TO MORE VETERANS PER 9572 07:39:15,001 --> 07:39:16,000 CAPITA THAN ANY OTHER STATE IN 9573 07:39:16,001 --> 07:39:20,000 THE UON, AND WE'RE ALSO KNOWN 9574 07:39:20,001 --> 07:39:23,000 AS A VERY STRONG STATE FOR 9575 07:39:23,001 --> 07:39:27,000 VOLUNTEERISM, AND SUPPORT FOR 9576 07:39:27,001 --> 07:39:31,000 VETERANS IS -- IS CLEARLY THE 9577 07:39:31,001 --> 07:39:32,000 RULE, AND IN MANY OF THE 9578 07:39:32,001 --> 07:39:35,000 COMMUNITIES, IT'S DIFFICULT 9579 07:39:35,001 --> 07:39:37,000 TO -- TO PROVIDE FOR THAT LEVEL 9580 07:39:37,001 --> 07:39:40,000 OF SUPPORT, BUT WE FIGURE OUT A 9581 07:39:40,001 --> 07:39:42,000 WAY TO DO IT ANYWAY. 9582 07:39:42,001 --> 07:39:43,000 IT IS UNIVERSALLY ACKNOWLEDGED 9583 07:39:43,001 --> 07:39:45,000 THAT THERE WAS SOMETHING 9584 07:39:45,001 --> 07:39:47,000 EXCEPTIONAL ABOUT MO BAILEY. 9585 07:39:47,001 --> 07:39:49,000 HIS WAS A LIFE OF SELFLESS 9586 07:39:49,001 --> 07:39:51,000 SERVICE, SACRIFI AND HUMILITY. 9587 07:39:51,001 --> 07:39:54,000 HE WAS -- HE WAS TRULY A CUT 9588 07:39:54,001 --> 07:39:56,000 ABOVE THE REST. 9589 07:39:56,001 --> 07:40:00,000 THAT'S A PRETTY STRONG STATEMENT 9590 07:40:00,001 --> 07:40:02,000 WHEN YOU CONSIDER THE MANY 9591 07:40:02,001 --> 07:40:04,000 VETERANS THAT CALL ALASKA HOME. 9592 07:40:04,001 --> 07:40:05,000 BUT MO NEVER SOUGHT RECOGNITION 9593 07:40:05,001 --> 07:40:07,000 FOR HIMSELF. 9594 07:40:07,001 --> 07:40:08,000 HE WAS SO HUMBLE. 9595 07:40:08,001 --> 07:40:09,000 BUT THIS DIDN'T STOP HIS FRIENDS 9596 07:40:09,001 --> 07:40:12,000 FROM ENSURING THAT HE RECEIVED 9597 07:40:12,001 --> 07:40:14,000 THE RECOGNITION THAT HE HAD SO, 9598 07:40:14,001 --> 07:40:17,000 SO HONORABLY EARNED. 9599 07:40:17,001 --> 07:40:19,000 IN 2007, MO WAS AWARDED WITH THE 9600 07:40:19,001 --> 07:40:21,000 PRESTIGIOUS ALASKA GOVERNOR'S 9601 07:40:21,001 --> 07:40:23,000 VETERANS ADVOCACY AWARD. 9602 07:40:23,001 --> 07:40:25,000 AND I -- I DO NOT BELIEVE THAT I 9603 07:40:25,001 --> 07:40:27,000 AM OVERSTATING WHEN I SAY TODAY 9604 07:40:27,001 --> 07:40:31,000 THAT WE MOURN THE LOSS OF ONE OF 9605 07:40:31,001 --> 07:40:32,000 OUR STATE'S MOST SIGNIFICANT 9606 07:40:32,001 --> 07:40:35,000 VETERAN LEADERS. 9607 07:40:35,001 --> 07:40:37,000 MO BAILEY WAS BORN IN 1939, GREW 9608 07:40:37,001 --> 07:40:40,000 UP IN MEMPHIS, TENNESSEE, DURING 9609 07:40:40,001 --> 07:40:41,000 THE JIM CROW ERA AND HE HAD -- 9610 07:40:41,001 --> 07:40:43,000 THE STORY GOES THAT HE WAS 9611 07:40:43,001 --> 07:40:45,000 LOOKING UP AT THE B-17'S FLYING 9612 07:40:45,001 --> 07:40:46,000 OVERHEAD AND HE TOLD HIMSELF 9613 07:40:46,001 --> 07:40:49,000 THAT SOMEDAY, SOMEDAY I'M GOING 9614 07:40:49,001 --> 07:40:52,000 TO BE FLYING THOSE. 9615 07:40:52,001 --> 07:40:58,000 MO RECOUNTED IN A 2009 INTERVIEW 9616 07:40:58,001 --> 07:40:59,000 PUBLISHED IN THE "FRONTIERSMAN 9617 07:40:59,001 --> 07:41:01,000 NEWSPAPER." 9618 07:41:01,001 --> 07:41:02,000 HE SAID -- "BLACK PEOPLE THERE 9619 07:41:02,001 --> 07:41:04,000 DIDN'T THINK THIS WOULD EVER 9620 07:41:04,001 --> 07:41:05,000 HAPPEN, BUT AT 7 YEARS OLD, I 9621 07:41:05,001 --> 07:41:06,000 KNEW THIS IS THE UNITED STATES 9622 07:41:06,001 --> 07:41:07,000 OF AMERICA AND YOU CAN DO 9623 07:41:07,001 --> 07:41:09,000 ANYTHING YOU WANT. 9624 07:41:09,001 --> 07:41:11,000 THAT WAS MY HEART'S DESIRE." 9625 07:41:11,001 --> 07:41:12,000 WERE MO'S WORDS. 9626 07:41:12,001 --> 07:41:13,000 MO ENLISTED IN THE ARMY AT THE 9627 07:41:13,001 --> 07:41:15,000 AGE OF 17. 9628 07:41:15,001 --> 07:41:17,000 THOSE OF YOU PAGES DOWN HERE, HE 9629 07:41:17,001 --> 07:41:19,000 JOINED THE ARMY AT 17. 9630 07:41:19,001 --> 07:41:20,000 HE FORGED HIS FATHER'S SIGNATURE 9631 07:41:20,001 --> 07:41:22,000 ON THE CONSENT FORM. 9632 07:41:22,001 --> 07:41:24,000 THENE SERVED 20 YEARS. 9633 07:41:24,001 --> 07:41:25,000 HE PULLEDWO TOURS IN VIETNAM 9634 07:41:25,001 --> 07:41:27,000 AND ONE IN ALASKA. 9635 07:41:27,001 --> 07:41:29,000 HE WAS A HELICOPTER CREW CHIEF 9636 07:41:29,001 --> 07:41:30,000 AND A GUNNER. 9637 07:41:30,001 --> 07:41:32,000 AND THEN UPON RETIREMENT FROM 9638 07:41:32,001 --> 07:41:34,000 THE ARMY, HE DECIDED TO STAY IN 9639 07:41:34,001 --> 07:41:36,000 ALASKA AND GET INVOLVED IN OUR COMMUNITY. 9640 07:41:36,001 --> 07:41:37,000 HE BECAME A PRIVATE PILOT, 9641 07:41:37,001 --> 07:41:39,000 FLIGHT INSTRUCTOR. 9642 07:41:39,001 --> 07:41:41,000 HE WAS A TRAINED VETERANS' 9643 07:41:41,001 --> 07:41:42,000 SERVICE OFFICER, AND HE SERVED 9644 07:41:42,001 --> 07:41:47,000 AS PRESIDENT OF THE VIETNAM 9645 07:41:47,001 --> 07:41:49,000 VETERANS OF AMERICA CHAPTER 903. 9646 07:41:49,001 --> 07:41:51,000 IT WAS NOT TOO LONG AGO THAT MO 9647 07:41:51,001 --> 07:41:52,000 DISCOVERED THAT HE HAD LEUKEMIA, 9648 07:41:52,001 --> 07:41:56,000 BUT HE SAID THIS IS -- THIS IS 9649 07:41:56,001 --> 07:42:00,000 NOT GOING TO SLOW ME DOWN. 9650 07:42:00,001 --> 07:42:02,000 AGAIN, IN AN INTERVIEW IN "THE 9651 07:42:02,001 --> 07:42:04,000 FRONTIERSMAN NEWSPAPER," MO 9652 07:42:04,001 --> 07:42:06,000 SAID -- "QUOTE --" I FEEL AS 9653 07:42:06,001 --> 07:42:07,000 THOUGH I'M PROBABLY ON SOMEBODY 9654 07:42:07,001 --> 07:42:10,000 ELSE'S TIME, BUT THAT'S OKAY. 9655 07:42:10,001 --> 07:42:12,000 THERE IS NO QUIT, NO WAY, NO HOW. 9656 07:42:12,001 --> 07:42:15,000 I'M NEVER GOING TO -- I'M NEVER 9657 07:42:15,001 --> 07:42:19,000 GOING TO PREPARE MYSELF TO DIE, NEVER." 9658 07:42:19,001 --> 07:42:21,000 MO REALLY DID LIVE HIS LIFE AND 9659 07:42:21,001 --> 07:42:24,000 LIVE IT LARGE. 9660 07:42:24,001 --> 07:42:26,000 I GOT A CALL IN EARLY JANUARY. 9661 07:42:26,001 --> 07:42:30,000 I WAS TRAVELING AND I GOT A CALL 9662 07:42:30,001 --> 07:42:32,000 FROM MY STAFF PERSON OUT IN THE 9663 07:42:32,001 --> 07:42:34,000 MATSU VALLEY AND THEY SAID MO 9664 07:42:34,001 --> 07:42:35,000 HAS LEUKEMIA, HE'S NOT DOING WELL, HE'S IN THE HOSPITAL, THIS 9665 07:42:35,001 --> 07:42:40,000 MAY BE IT. 9666 07:42:40,001 --> 07:42:42,000 AND I CALLED THE HOSPITAL AND A 9667 07:42:42,001 --> 07:42:43,000 MAN ANSWERED, AND I ASKED TO 9668 07:42:43,001 --> 07:42:46,000 SPEAK TO MO. 9669 07:42:46,001 --> 07:42:47,000 THE GUY ON THE OTHER END SAYS 9670 07:42:47,001 --> 07:42:49,000 WELL, THIS IS MO. 9671 07:42:49,001 --> 07:42:50,000 I SAID MO, YOU SOUND PRETTY HEALTHY. 9672 07:42:50,001 --> 07:42:52,000 HE SAYS YEAH, THEY TELL ME I'M 9673 07:42:52,001 --> 07:42:54,000 NOT GOING TO MAKE IT. 9674 07:42:54,001 --> 07:42:55,000 THEY TELL ME THAT I'M DONE, I'M 9675 07:42:55,001 --> 07:42:58,000 IN THE HOSPITAL. 9676 07:42:58,001 --> 07:43:00,000 HE SAYS BUT I JUST DON'T FEEL LIKE DYING. 9677 07:43:00,001 --> 07:43:03,000 I DON'T FEEL LIKE I'M READY. 9678 07:43:03,001 --> 07:43:04,000 I SAID MO, YOU DOWNED SOUND LIKE 9679 07:43:04,001 --> 07:43:05,000 YOU'RE GOING ANYWHERE. 9680 07:43:05,001 --> 07:43:07,000 I SAID YOU SOUND LIKE YOU HAVE A 9681 07:43:07,001 --> 07:43:09,000 LOT OF FIGHT LEFT NEW. 9682 07:43:09,001 --> 07:43:10,000 AND MO SAID, HE SAYS, YOU KNOW, 9683 07:43:10,001 --> 07:43:11,000 THERE ARE SOME THINGS THAT I 9684 07:43:11,001 --> 07:43:12,000 WANT TO DO. 9685 07:43:12,001 --> 07:43:13,000 I HAVE BEEN WORKING ON THIS 9686 07:43:13,001 --> 07:43:15,000 VETERANS' GATHERING. 9687 07:43:15,001 --> 07:43:18,000 IT'S A BIG GATHERING IN THE 9688 07:43:18,001 --> 07:43:19,000 VALLEY WITH SO MANY OF OUR 9689 07:43:19,001 --> 07:43:21,000 ALASKAN VETERANS, AND HE SAYS 9690 07:43:21,001 --> 07:43:23,000 I'VE GOT A LOT OF THINGS TO DO. 9691 07:43:23,001 --> 07:43:24,000 I HAVE GOT SOME THINGS I WANT TO 9692 07:43:24,001 --> 07:43:25,000 GIVE YOU. 9693 07:43:25,001 --> 07:43:26,000 AND, YOU KNOW, I'M FOCUSING ON 9694 07:43:26,001 --> 07:43:31,000 THAT. 9695 07:43:31,001 --> 07:43:33,000 I SAID MO, I'LL SEE YOU IN MAY 9696 07:43:33,001 --> 07:43:35,000 AT THE GATHERING. 9697 07:43:35,001 --> 07:43:37,000 THIS WAS JANUARY, AND HE HAD 9698 07:43:37,001 --> 07:43:42,000 BEEN TOLD THIS WAS PRETTY MUCH THE END. 9699 07:43:42,001 --> 07:43:45,000 BUT IN MAY, MO HOSTED THE 9700 07:43:45,001 --> 07:43:47,000 GATHERING IN PALMER, THIS ANNUAL 9701 07:43:47,001 --> 07:43:49,000 DAY-LONG EVENT THAT PROVIDES 9702 07:43:49,001 --> 07:43:50,000 ALASKA VETS ACROSS THE 9703 07:43:50,001 --> 07:43:52,000 GENERATIONS AN OPPORTUNITY TO 9704 07:43:52,001 --> 07:43:53,000 SPEND TIME WITH ONE ANOTHER. 9705 07:43:53,001 --> 07:43:54,000 THEY LISTEN TO MUSIC, THEY 9706 07:43:54,001 --> 07:43:56,000 DONATE SOMETHING TO THE 9707 07:43:56,001 --> 07:43:58,000 VETERANS' AVIATION OUTREACH, AND 9708 07:43:58,001 --> 07:44:00,000 REALLY THEY HAVE A LOT OF FUN. 9709 07:44:00,001 --> 07:44:02,000 AND THERE ARE SOME SPEECHES, TOO. 9710 07:44:02,001 --> 07:44:04,000 YOU CAN'T GO TO ANY VETERANS' 9711 07:44:04,001 --> 07:44:08,000 GATHERING WITHOUT A SPEECH OR 9712 07:44:08,001 --> 07:44:10,000 SO, BUT AT THAT MAY GATHERING, 9713 07:44:10,001 --> 07:44:12,000 MO HONORED ME WITH A VETERANS' 9714 07:44:12,001 --> 07:44:14,000 AVIATION OUTREACH JACKET. 9715 07:44:14,001 --> 07:44:17,000 IT'S GOT MY NAME ON IT AND I'M 9716 07:44:17,001 --> 07:44:18,000 AN HONORARY MEMBER OF THE 9717 07:44:18,001 --> 07:44:22,000 VETERANS' AVIATION OUTREACH, AND 9718 07:44:22,001 --> 07:44:23,000 MO STOOD WITH ME THERE AND WE 9719 07:44:23,001 --> 07:44:24,000 BOTH TALKED ABOUT THE FACT THAT 9720 07:44:24,001 --> 07:44:28,000 BACK IN JANUARY, MAY LOOKED LIKE 9721 07:44:28,001 --> 07:44:30,000 IT WAS A LONG WAYS AWAY, BUT MO 9722 07:44:30,001 --> 07:44:32,000 IS A FIGHTER. 9723 07:44:32,001 --> 07:44:35,000 MO IS NOT ONE THAT WAS GOING TO 9724 07:44:35,001 --> 07:44:38,000 GO OUT EASY. 9725 07:44:38,001 --> 07:44:42,000 AND AT THAT SPEECH, THOSE MANY 9726 07:44:42,001 --> 07:44:44,000 SPEECHES, I -- I TOLD THOSE AT 9727 07:44:44,001 --> 07:44:47,000 THE GATHERING THAT AS MUCH AS I 9728 07:44:47,001 --> 07:44:49,000 CAN DO, AS MUCH AS I WANT TO DO 9729 07:44:49,001 --> 07:44:51,000 FOR OUR VETERANS AND HERE IN THE 9730 07:44:51,001 --> 07:44:56,000 SENATE TO HELP ALASKA'S VETERANS 9731 07:44:56,001 --> 07:44:58,000 AND ALL VETERANS, I SAID 9732 07:44:58,001 --> 07:45:00,000 MO, I'LL NEVER HOLD A CANDLE TO 9733 07:45:00,001 --> 07:45:02,000 YOU, BUT I PROMISED TO TRY AND I 9734 07:45:02,001 --> 07:45:03,000 PROMISE TO TRY AND DO MORE. 9735 07:45:03,001 --> 07:45:06,000 AND TODAY I RENEW THAT 9736 07:45:06,001 --> 07:45:07,000 COMMITMENT IN MO'S LOVING 9737 07:45:07,001 --> 07:45:11,000 MEMORY. 9738 07:45:11,001 --> 07:45:12,000 NOW, MANY OF US THAT WERE 9739 07:45:12,001 --> 07:45:15,000 GATHERED THERE THOUGHT THAT THIS 9740 07:45:15,001 --> 07:45:17,000 EVENT WAS GOING TO BE MO'S, KIND 9741 07:45:17,001 --> 07:45:18,000 OF HIS LAST HURRAH AND, INDEED, 9742 07:45:18,001 --> 07:45:21,000 THAT IS THE WAY THAT IT TURNED 9743 07:45:21,001 --> 07:45:22,000 T, BUT MO CONTINUED TO FIGHT 9744 07:45:22,001 --> 07:45:24,000 RIGHT UP UNTIL THE VERY END ON 9745 07:45:24,001 --> 07:45:26,000 TUESDAY EVENING. 9746 07:45:26,001 --> 07:45:28,000 MADAM PRESIDENT, I COULD GO ON 9747 07:45:28,001 --> 07:45:31,000 FOR AWHILE ABOUT MO'S WORK IN 9748 07:45:31,001 --> 07:45:32,000 SERVICE TO THE ALASKA VETERANS 9749 07:45:32,001 --> 07:45:33,000 COMMUNITY BUT I WOULD SUGGEST 9750 07:45:33,001 --> 07:45:36,000 THAT IT'S PROBABLY A MORE 9751 07:45:36,001 --> 07:45:39,000 POWERFUL STATEMENT, A MORE 9752 07:45:39,001 --> 07:45:40,000 POWERFUL STORY IF IT'S DONE IN 9753 07:45:40,001 --> 07:45:41,000 MO'S OWN WORDS. 9754 07:45:41,001 --> 07:45:42,000 AND I WOULD THEREFORE ASK 9755 07:45:42,001 --> 07:45:45,000 UNANIMOUS CONSENT THAT TWO 9756 07:45:45,001 --> 07:45:47,000 ARTICLES, ONE FROM THE "VIETNAM 9757 07:45:47,001 --> 07:45:49,000 VETERANS OF AMERICA MAGAZINE," 9758 07:45:49,001 --> 07:45:50,000 AND THE OTHER FROM THE 9759 07:45:50,001 --> 07:45:51,000 "ANCHORAGE DAILY NEWS" BE PRINTED IN THE RECORD AT THE 9760 07:45:51,001 --> 07:45:52,000 CONCLUSION OF MY REMKS. 9761 07:45:52,001 --> 07:45:53,000 THE PRESIDING OFFICER: WITHOUT 9762 07:45:53,001 --> 07:45:54,000 OBJECTION. 9763 07:45:54,001 --> 07:45:55,000 MS. MURKOWSKI: MADAM PRESIDENT, 9764 07:45:55,001 --> 07:45:57,000 I PLACE THESE ARTICLES IN THE 9765 07:45:57,001 --> 07:45:58,000 RECORD NOT ONLY BECAUSE MO'S 9766 07:45:58,001 --> 07:46:04,000 LEGACY NEEDS TO BE PRESERVED IN 9767 07:46:04,001 --> 07:46:05,000 HISTORY, NOT ONLY TO DO JUSTICE 9768 07:46:05,001 --> 07:46:07,000 TO THE TREMENDOUS CONTRIBUTIONS 9769 07:46:07,001 --> 07:46:08,000 OF MO BAILEY, I'M REALLY HOPING 9770 07:46:08,001 --> 07:46:11,000 THAT THESE ARTICLES WILL CATCH 9771 07:46:11,001 --> 07:46:13,000 THE ATTENTION OF SOME OF THE 9772 07:46:13,001 --> 07:46:14,000 SENIOR OFFICIALS WITHIN T V.A. 9773 07:46:14,001 --> 07:46:17,000 READING ABOUT THE GAPS IN 9774 07:46:17,001 --> 07:46:19,000 SERVICE THAT MO BAILEY SOUGHT TO 9775 07:46:19,001 --> 07:46:21,000 FILL MIGHT CHALLENGE THE V.A. TO 9776 07:46:21,001 --> 07:46:24,000 THINK JUST A LITTLE BIT HARDER 9777 07:46:24,001 --> 07:46:27,000 ABOUT HOW IT CAN IMPROVE ITS 9778 07:46:27,001 --> 07:46:28,000 SERVICE TO OUR RURAL VETERANS. 9779 07:46:28,001 --> 07:46:30,000 AND AT THE VERY LEAST, IT MIGHT 9780 07:46:30,001 --> 07:46:32,000 CAUSE THE V.A. TO ACKNOWLEDGE 9781 07:46:32,001 --> 07:46:35,000 THE DEBT THAT IT OWES TO PEOPLE 9782 07:46:35,001 --> 07:46:37,000 LIKE MO BAILEY AND TO SO MANY 9783 07:46:37,001 --> 07:46:38,000 OTHERS IN OUR VETERANS SERVICE 9784 07:46:38,001 --> 07:46:40,000 ORGANIZATIONS WHO ARE GIVING OF 9785 07:46:40,001 --> 07:46:42,000 THEIR OWN TIME, THEIR OWN 9786 07:46:42,001 --> 07:46:44,000 ENERGY, THEIR OWN MONEY TO FILL 9787 07:46:44,001 --> 07:46:48,000 THESE GAPS. 9788 07:46:48,001 --> 07:46:50,000 SO MAYBE, JUST MAYBE, MO'S 9789 07:46:50,001 --> 07:46:51,000 STORY, WHICH HAS BEEN AN 9790 07:46:51,001 --> 07:46:53,000 INSPIRATION TO SO MANY OF US IN 9791 07:46:53,001 --> 07:46:55,000 ALASKA, WILL ALSO INSPIRE THE 9792 07:46:55,001 --> 07:46:57,000 V.A. TO DO MORE AND TO DO BETTER 9793 07:46:57,001 --> 07:47:00,000 BETTER. 9794 07:47:00,001 --> 07:47:01,000 ON BEHALF OF ALL MY SENATE 9795 07:47:01,001 --> 07:47:03,000 COLLEAGUES, MAY I EXPRESS MY 9796 07:47:03,001 --> 07:47:04,000 DEEPEST CONDOLEES TO MO'S WIFE 9797 07:47:04,001 --> 07:47:06,000 ANNE AND ALL OF THOSE WHO HAVE 9798 07:47:06,001 --> 07:47:08,000 BEEN TOUCHED BY MO BAILEY'S 9799 07:47:08,001 --> 07:47:09,000 GENEROSITY AND KINDNESS. 9800 07:47:09,001 --> 07:47:10,000 AND WITH THAT, MADAM PRESIDENT, 9801 07:47:10,001 --> 07:47:19,000 I THANK YOU, AND I YIELD THE 9802 07:47:19,001 --> 07:47:21,000 FL 9803 07:47:21,001 --> 07:47:22,000 MR. MENENDEZ: MADAM PRESIDENT? 9804 07:47:22,001 --> 07:47:23,000 THE PRESIDING OFFICER: THE SENATOR FROM NEW JERSEY. 9805 07:47:23,001 --> 07:47:25,000 MR. MENENDEZ: MADAM PRESIDENT, 9806 07:47:25,001 --> 07:47:26,000 AT THE CONCLUSION OF MY REMARKS, 9807 07:47:26,001 --> 07:47:28,000 I WANT TO NOW ASK UNANIMOUS 9808 07:47:28,001 --> 07:47:29,000 CONSENT THAT THE SENATE PROCEED 9809 07:47:29,001 --> 07:47:31,000 TO A PERIOD OF MORNING BUSINESS 9810 07:47:31,001 --> 07:47:33,000 WITH SENATORS PERMITTED TO SPEAK 9811 07:47:33,001 --> 07:47:35,000 FOR UP TO TEN MINUTES EACH. 9812 07:47:35,001 --> 07:47:36,000 THE PRESIDING OFFICER: WITHOUT OBJECTION. 9813 07:47:36,001 --> 07:47:39,000 MR. MENENDEZ: THANK YOU, 9814 07:47:39,001 --> 07:47:40,000 MADAM PRESIDENT. 9815 07:47:40,001 --> 07:47:42,000 MADAM PRESIDENT, I COME AND HAVE 9816 07:47:42,001 --> 07:47:46,000 COME TO THE FLOOR MANYIMES TO 9817 07:47:46,001 --> 07:47:47,000 SPEAK OUT ABOUT THE CASTRO 9818 07:47:47,001 --> 07:47:49,000 REGIME ABUSES OF THE CUBAN 9819 07:47:49,001 --> 07:47:53,000 PEOPLE, AND TODAY I COME TO THE 9820 07:47:53,001 --> 07:47:56,000 FLOOR ONCE AGAIN 9821 07:47:56,001 --> 07:47:59,000 STRONG OPPOSITION TO ANY ATTEMPT 9822 07:47:59,001 --> 07:48:03,000 IN THIS CHAMBER TO PASS ANY BILL 9823 07:48:03,001 --> 07:48:06,000 THAT IN ANY WAY LIFTS OR LESSENS 9824 07:48:06,001 --> 07:48:08,000 THE TRAVEL BAN ON CUBA. 9825 07:48:08,001 --> 07:48:12,000 I WANT TO MAKE IT ABSOLUTELY 9826 07:48:12,001 --> 07:48:16,000 CLEAR THAT I WILL OPPOSE AND 9827 07:48:16,001 --> 07:48:17,000 FILIBUSTER IF I NEED TO ANY 9828 07:48:17,001 --> 07:48:21,000 EFFORT TO EASE REGULATIONS THAT 9829 07:48:21,001 --> 07:48:22,000 STAND TO ENRICH A REGIME THAT 9830 07:48:22,001 --> 07:48:24,000 DENIES ITS OWN PEOPLE BASIC 9831 07:48:24,001 --> 07:48:25,000 HUMAN RIGHTS. 9832 07:48:25,001 --> 07:48:28,000 MADAM PRESIDENT, I -- I DON'T 9833 07:48:28,001 --> 07:48:29,000 WANT TO OBSTRUCT THE BUSINESS OF 9834 07:48:29,001 --> 07:48:31,000 THIS CHAMBER BUT I KNOW MY 9835 07:48:31,001 --> 07:48:34,000 COLLEAGUES ON BOTH SIDES OF THE 9836 07:48:34,001 --> 07:48:39,000 AISLE ARE WELL AWARE OF HOW 9837 07:48:39,001 --> 07:48:41,000 DEEPLY I FEEL ABOUT FREEING THE 9838 07:48:41,001 --> 07:48:42,000 PEOPLE OF CUBA FROM THE 9839 07:48:42,001 --> 07:48:44,000 REPRESSIVE REGIME UNDER WHICH 9840 07:48:44,001 --> 07:48:47,000 THEY HAVE SUFFERED FOR TOO LONG. 9841 07:48:47,001 --> 07:48:49,000 THE FACT IS THAT BIG CORPORATE 9842 07:48:49,001 --> 07:48:51,000 INTERESTS BEHIND THIS MISGUIDED 9843 07:48:51,001 --> 07:48:53,000 ATTEMPT TO WEAKEN THE TRAVEL BAN 9844 07:48:53,001 --> 07:48:58,000 COULD NOT CARE LESS WHETHER THE 9845 07:48:58,001 --> 07:48:59,000 CUBAN PEOPLE ARE FREE OR NOT. 9846 07:48:59,001 --> 07:49:00,000 THEY CARE ONLY ABOUT OPENING A 9847 07:49:00,001 --> 07:49:01,000 NEW MARKET, INCREASING THEIR 9848 07:49:01,001 --> 07:49:03,000 BOTTOM LINE. 9849 07:49:03,001 --> 07:49:05,000 THIS IS ABOUT THE COLOR OF 9850 07:49:05,001 --> 07:49:07,000 MONEY, NOT THE DESIRE FOR 9851 07:49:07,001 --> 07:49:10,000 FREEDOM. 9852 07:49:10,001 --> 07:49:13,000 THE RY FACT THAT A TRAVEL BILL 9853 07:49:13,001 --> 07:49:16,000 HAS MOVED THROUGH THE HOUSE 9854 07:49:16,001 --> 07:49:18,000 AGRICULTURE COMMITTEE MAK ONE 9855 07:49:18,001 --> 07:49:23,000 WONDER WHY AMERICAN AGRICULTURAL 9856 07:49:23,001 --> 07:49:24,000 INTERESTS WOULD EVEN CARE ABOUT 9857 07:49:24,001 --> 07:49:28,000 TOUR 9858 07:49:28,001 --> 07:49:31,000 ONE CAN ONLY ASSUME THAT 9859 07:49:31,001 --> 07:49:34,000 TOURISM DOLLARS FOR THE CASTRO 9860 07:49:34,001 --> 07:49:36,000 REGIME TO BUY MORE AGRICULTURAL PRODUCTS. 9861 07:49:36,001 --> 07:49:39,000 THAT WOULD ONLY SERVE TO ENRICH 9862 07:49:39,001 --> 07:49:41,000 THE REGIME AND DO ABSOLUTELY 9863 07:49:41,001 --> 07:49:44,000 NOTHING TO BRING DEMOCRACY TO 9864 07:49:44,001 --> 07:49:45,000 THE ISLAND. 9865 07:49:45,001 --> 07:49:47,000 LET'S BE CLEAR. 9866 07:49:47,001 --> 07:49:49,000 THOSE W 9867 07:49:49,001 --> 07:49:51,000 INCREASING TRAVEL WILL MAGICALLY 9868 07:49:51,001 --> 07:49:53,000 BREED DEMOCRACY IN CUBA ARE 9869 07:49:53,001 --> 07:49:56,000 SIMPLY DEAD WRONG. 9870 07:49:56,001 --> 07:49:59,000 FOR YEARS, THE WORLD HAS BEEN 9871 07:49:59,001 --> 07:50:01,000 TRAVELING TO CUBA AND NOTHING 9872 07:50:01,001 --> 07:50:03,000 HAS CHANGED. 9873 07:50:03,001 --> 07:50:06,000 MILLIONS OF TOURISTS FROM 9874 07:50:06,001 --> 07:50:08,000 DEMOCRATIC NATIONS HAVE VISITED 9875 07:50:08,001 --> 07:50:10,000 HAVANA, AND THE CASTRO REGIME 9876 07:50:10,001 --> 07:50:11,000 HAS NOT LOOSENED ITS IRON GRIP 9877 07:50:11,001 --> 07:50:13,000 ON ITS PEOPLE. 9878 07:50:13,001 --> 07:50:14,000 IT HAS NOT ENDED ITS REPRESSIVE 9879 07:50:14,001 --> 07:50:17,000 POLICIES. 9880 07:50:17,001 --> 07:50:20,000 IT HAS NOT STOPPED IMPRISONING 9881 07:50:20,001 --> 07:50:21,000 AND BRUTALLY ABUSING 9882 07:50:21,001 --> 07:50:23,000 PRO-DEMOCRACY FORCES. 9883 07:50:23,001 --> 07:50:25,000 NOW, SOMETIMES I WONDER, THOSE 9884 07:50:25,001 --> 07:50:29,000 WHO LAMENT OUR DEPENDENCE ON 9885 07:50:29,001 --> 07:50:31,000 FOREIGN OIL BECAUSE IT ENRICHES 9886 07:50:31,001 --> 07:50:32,000 REGIMES IN TERRORIST STATES LIKE 9887 07:50:32,001 --> 07:50:35,000 IRAN SHOULD NOT HAVE A DOUBLE 9888 07:50:35,001 --> 07:50:37,000 STANDARD WHEN IT COMES TO 9889 07:50:37,001 --> 07:50:41,000 ENRICHING A BRUTAL DICTATORSHIP 9890 07:50:41,001 --> 07:50:42,000 LIKE CUBA RIGHT HERE IN OUR OWN 9891 07:50:42,001 --> 07:50:46,000 BACKYARD. 9892 07:50:46,001 --> 07:50:48,000 HOW COINCIDENTAL THAT SUDDENLY 9893 07:50:48,001 --> 07:50:51,000 NOW THE CONGRESS IS CONSIDERING 9894 07:50:51,001 --> 07:50:52,000 LIFTING A TRAVEL BAN THE CASTRO 9895 07:50:52,001 --> 07:50:55,000 REGIME IS HOPING THE WORLD WILL 9896 07:50:55,001 --> 07:50:57,000 BELIEVE THAT IT WILL RELEASE 52 9897 07:50:57,001 --> 07:51:00,000 PRISONERS OF CONSCIENCE. 9898 07:51:00,001 --> 07:51:02,000 WELL, LET'S SET THE RECORD STRAIGHT. 9899 07:51:02,001 --> 07:51:06,000 MANY PEOPLE ARE WRONGLY UNDER 9900 07:51:06,001 --> 07:51:07,000 THE IMPRESSION -- WRONGLY -- 9901 07:51:07,001 --> 07:51:09,000 READING AND WATCHING MEDIA 9902 07:51:09,001 --> 07:51:11,000 REPORTS THAT 52 POLITICAL 9903 07:51:11,001 --> 07:51:14,000 PRISONERS HAVE ALREADY BEEN 9904 07:51:14,001 --> 07:51:19,000 RELEASED AND ARE FREE IN CUBA. 9905 07:51:19,001 --> 07:51:21,000 THE FACT IS, ONLY ABOUT SEVEN 9906 07:51:21,001 --> 07:51:24,000 HAVE BEEN RELEASED, AND 9907 07:51:24,001 --> 07:51:26,000 FORCIBLY, FORCIBLY DEPORTED FROM 9908 07:51:26,001 --> 07:51:27,000 THEIR COUNTRY, ANOTHER HUMAN 9909 07:51:27,001 --> 07:51:29,000 RIGHTS VIOLATION. 9910 07:51:29,001 --> 07:51:31,000 INSTEAD OF ALLOWING THEM TO STAY 9911 07:51:31,001 --> 07:51:32,000 AND PEACEFULLY ADVOCATE FOR 9912 07:51:32,001 --> 07:51:35,000 CHANGE WITHIN THEIR OWN COUNTRY. 9913 07:51:35,001 --> 07:51:38,000 SO EVEN WHEN THE REGIME RELEASES 9914 07:51:38,001 --> 07:51:40,000 PEOPLE WHOSE SIMPLE CRIME WAS 9915 07:51:40,001 --> 07:51:44,000 TRYING TO PEACEFULLY CREATE 9916 07:51:44,001 --> 07:51:47,000 CHANGE IN THEIR COUNTRY AND GET 9917 07:51:47,001 --> 07:51:49,000 IMPRISONED FOR YEARS FOR THAT 9918 07:51:49,001 --> 07:51:52,000 PEACEFUL ACT, THEN WHEN THEY 9919 07:51:52,001 --> 07:51:54,000 RELEAS 9920 07:51:54,001 --> 07:51:56,000 WITH THE UNDERSTANDING THAT THEY 9921 07:51:56,001 --> 07:52:00,000 WILL BE DEPORTED OUT OF THEIR 9922 07:52:00,001 --> 07:52:02,000 COUNTRY SO THEY CAN NO LONGER BE 9923 07:52:02,001 --> 07:52:07,000 ADVOCATES, PEACEFUL ADVOCATES 9924 07:52:07,001 --> 07:52:09,000 FOR CIVIL AND DEMOCRATIC CHANGE. 9925 07:52:09,001 --> 07:52:11,000 IMAGINE IF THOSE OF US 9926 07:52:11,001 --> 07:52:13,000 AMERICANS COULD BE ARRESTED 9927 07:52:13,001 --> 07:52:17,000 SIMPLY BECAUSE WE DISAGREED WITH 9928 07:52:17,001 --> 07:52:18,000 THE GOVERNMENT, SOUGHT TO 9929 07:52:18,001 --> 07:52:19,000 PEACEFULLY CHANGE IT AND THEN 9930 07:52:19,001 --> 07:52:20,000 ULTIMATELY AFTER BEING ARRESTED 9931 07:52:20,001 --> 07:52:24,000 FOR YEARS WERE DEPORTED TO SOME 9932 07:52:24,001 --> 07:52:25,000 OTHER COUNTRY IN THE WORLD. 9933 07:52:25,001 --> 07:52:29,000 THE REMAINING 47 PRISONERS ARE 9934 07:52:29,001 --> 07:52:33,000 SET TO BE RELEASED BUT NOT NOW, 9935 07:52:33,001 --> 07:52:35,000 NOT TOMORROW, NOT NEXT WEEK, NOT 9936 07:52:35,001 --> 07:52:38,000 EVEN NEXT MONTH BUT SOMETIME 9937 07:52:38,001 --> 07:52:40,000 DURING THE NEXT THREE TO FOUR 9938 07:52:40,001 --> 07:52:41,000 MONTHS, WE ARE TOLD, OR SO THE 9939 07:52:41,001 --> 07:52:43,000 REGIME SAYS. 9940 07:52:43,001 --> 07:52:45,000 ACCORDING TO REPORTS IN THE 9941 07:52:45,001 --> 07:52:46,000 "MIAMI HERALD," NINE OF THOSE 9942 07:52:46,001 --> 07:52:51,000 PRISONERS HAVE SAID THEY WILL 9943 07:52:51,001 --> 07:52:55,000 REFUSE TO LEAVE FOR SPAIN IF 9944 07:52:55,001 --> 07:52:57,000 RELEASED, AND MANY WHO WERE 9945 07:52:57,001 --> 07:52:59,000 RELEASED AND FORCIBLY DEPORTED 9946 07:52:59,001 --> 07:53:00,000 TO MADRID HAVE VOWED TO CONTINUE 9947 07:53:00,001 --> 07:53:02,000 THEIR ACTIVISM IN EXILE. 9948 07:53:02,001 --> 07:53:04,000 THEY HE TOLD REPORTERS THEY 9949 07:53:04,001 --> 07:53:08,000 FEEL THE SHOCK OF BEING FORCED 9950 07:53:08,001 --> 07:53:10,000 TO LEAVE THEIR COUNTRY. 9951 07:53:10,001 --> 07:53:13,000 ONE TOLD A REPORTER HE FEELS -- 9952 07:53:13,001 --> 07:53:14,000 QUOTE -- "LIKE I WAS STILL IN 9953 07:53:14,001 --> 07:53:15,000 PRISON. 9954 07:53:15,001 --> 07:53:18,000 I LEFT BEHIND PART OF MY FAMILY. 9955 07:53:18,001 --> 07:53:22,000 I STILL FEEL LIKE I HAVE THE 9956 07:53:22,001 --> 07:53:24,000 CUFFS ON MY HAND." 9957 07:53:24,001 --> 07:53:25,000 THE RELEASED MEN SAID CONTINUES 9958 07:53:25,001 --> 07:53:28,000 IN THE PRISON WERE HORRENDOUS. 9959 07:53:28,001 --> 07:53:29,000 THEY SHARED THEIR CELLS WITH 9960 07:53:29,001 --> 07:53:31,000 RATS. 9961 07:53:31,001 --> 07:53:33,000 DISEASES INFESTED THE PRISON, 9962 07:53:33,001 --> 07:53:37,000 THEY SAID, AND THEY TOLD OF 9963 07:53:37,001 --> 07:53:38,000 INMATES TRYING TO KILL 9964 07:53:38,001 --> 07:53:41,000 THEMSELVES OR DO THEMSELVES 9965 07:53:41,001 --> 07:53:43,000 BODILY HARM BECAUSE OF THE 9966 07:53:43,001 --> 07:53:44,000 SQUALID PRISON CONDITIONS THEY 9967 07:53:44,001 --> 07:53:45,000 WERE FORCED TO ENDURE. 9968 07:53:45,001 --> 07:53:49,000 REMEMBER, THESE A POLITICAL 9969 07:53:49,001 --> 07:53:53,000 PRISONERS, NOT PEOPLE WHO 9970 07:53:53,001 --> 07:53:55,000 CREATED COMMON CRIMES. 9971 07:53:55,001 --> 07:53:56,000 ONE OF THE DISSIDENTS ALSO TOLD 9972 07:53:56,001 --> 07:53:58,000 THE REPORTERS -- AND I QUOTE -- 9973 07:53:58,001 --> 07:53:59,000 "THE HYGIENE AND HEALTH 9974 07:53:59,001 --> 07:54:03,000 CONDITIONS IN PRISONS IN CUBA 9975 07:54:03,001 --> 07:54:06,000 ARE NOT TERRIBLE, THEY'RE WORSE THAN TERRIBLE. 9976 07:54:06,001 --> 07:54:08,000 WE HAD TO LIVE WITH RATS AND 9977 07:54:08,001 --> 07:54:12,000 COCKROACHES AND EXCREMENTS, AND 9978 07:54:12,001 --> 07:54:13,000 IT'S NOT A LIE. 9979 07:54:13,001 --> 07:54:14,000 GALVEZ', A 66-YEAR-OLD 9980 07:54:14,001 --> 07:54:18,000 JOURNALIST WHO WAS SENTENCED TO 9981 07:54:18,001 --> 07:54:23,000 15 YEARS, SIMPLY BECAUSE OF WHAT 9982 07:54:23,001 --> 07:54:26,000 HE SOUGHT TO WRITE" -- 15 YEARS 9983 07:54:26,001 --> 07:54:28,000 OF HIS LIFE IN THESE HORRIBLE 9984 07:54:28,001 --> 07:54:32,000 ISONS, SAID -- "THEY ARE 9985 07:54:32,001 --> 07:54:33,000 OUTBREAKS OF DENGE FEVER AND TUBERCULOSIS." 9986 07:54:33,001 --> 07:54:36,000 HE SAID THERE WERE MORE THAN 9987 07:54:36,001 --> 07:54:37,000 1,500 PRISONERS IN THE PRISON IN 9988 07:54:37,001 --> 07:54:40,000 VIAKALADA. 9989 07:54:40,001 --> 07:54:42,000 40 PRISONERS TO A CELL MEASURING 9990 07:54:42,001 --> 07:54:45,000 32 SQUARE FEET. 9991 07:54:45,001 --> 07:54:46,000 ANOTHER PRISONER, NORMAN 9992 07:54:46,001 --> 07:54:48,000 HERNANDEZ SAID -- QUOTE -- "THE 9993 07:54:48,001 --> 07:54:49,000 PRISONERS ARE TIRED OF DEMANDING 9994 07:54:49,001 --> 07:54:50,000 THEIR RIGHTS. 9995 07:54:50,001 --> 07:54:53,000 THEY LOSE ALL HOPE. 9996 07:54:53,001 --> 07:54:55,000 THEY LOSE THE DESIRE TO LIVE AND 9997 07:54:55,001 --> 07:54:58,000 THEY TRY TO HURT THEMSELVES SO 9998 07:54:58,001 --> 07:55:01,000 THEY WILL GET ATTENDED TO." 9999 07:55:01,001 --> 07:55:02,000 NOW, THESE MEN WERE LUCKY TO BE 10000 07:55:02,001 --> 07:55:04,000 RELEASED BUT THEY NOT GIVE UP. 10001 07:55:04,001 --> 07:55:05,000 THEY WILL TELL THEIR STORIES AND 10002 07:55:05,001 --> 07:55:07,000 THEY'LL CONTINUE TO FIGHT FOR 10003 07:55:07,001 --> 07:55:10,000 FREEDOM FOR ALL CUBANS. 10004 07:55:10,001 --> 07:55:13,000 MADAM PRESIDENT, I ASK THE 10005 07:55:13,001 --> 07:55:17,000 QUESTION, IT TOOK THE REGIME ONE 10006 07:55:17,001 --> 07:55:19,000 NIGHT IN MARCH TO ARREST THESE 10007 07:55:19,001 --> 07:55:21,000 52 PEOPLE, ONE NIGHT. 10008 07:55:21,001 --> 07:55:23,000 SCOOPED UP 52 PEOPLE WHO WERE 10009 07:55:23,001 --> 07:55:25,000 PEACEFULLY ADVOCATING FOR CHANGE 10010 07:55:25,001 --> 07:55:29,000 IN THEIR OWN COUNTRY. 10011 07:55:29,001 --> 07:55:31,000 SO WE MIGHT ASK THEMSELVES, IF 10012 07:55:31,001 --> 07:55:32,000 IT TOOK YOU ONE NIGHT TO ARREST 10013 07:55:32,001 --> 07:55:34,000 52 POLITICAL PRISONERS, WHY WILL 10014 07:55:34,001 --> 07:55:36,000 IT TAKE FOUR MONTHS TO RELEASE 10015 07:55:36,001 --> 07:55:39,000 ALL OF THEM? 10016 07:55:39,001 --> 07:55:40,000 IT'S NOT A COINCIDENCE THAT 10017 07:55:40,001 --> 07:55:44,000 DURING THE NEXT THREE TO FOUR 10018 07:55:44,001 --> 07:55:46,000 MONTHS, THERE WILL BE MEMBERS OF 10019 07:55:46,001 --> 07:55:48,000 THE CONGRESS WHO WILL BE LOOKING 10020 07:55:48,001 --> 07:55:50,000 TO PROVIDE THE CASTRO REGIME 10021 07:55:50,001 --> 07:55:51,000 WITH BILLIONS OF DOLLARS OF 10022 07:55:51,001 --> 07:55:53,000 ADDED TOURISM REVENUE. 10023 07:55:53,001 --> 07:55:54,000 IT'S NOT A COINCIDENCE DENTS 10024 07:55:54,001 --> 07:55:56,000 THAT IN SEPTEMBER -- 10025 07:55:56,001 --> 07:55:57,000 COINCIDENCE THAT IN SEPTEMBER, 10026 07:55:57,001 --> 07:55:59,000 THE EUROPEAN UNION WILL ONCE 10027 07:55:59,001 --> 07:56:01,000 AGAIN DELIBERATE THE WDOM OF 10028 07:56:01,001 --> 07:56:02,000 ITS REMAINING SANCTIONS. 10029 07:56:02,001 --> 07:56:06,000 THE NAGGING QUESTION THAT 10030 07:56:06,001 --> 07:56:08,000 LINGERS IN MY MIND IS: WILL THE 10031 07:56:08,001 --> 07:56:11,000 47 EVER SEE THE LIGHT OF DAY OR 10032 07:56:11,001 --> 07:56:12,000 WILL THEY BE FORCIBLY DEPORTED 10033 07:56:12,001 --> 07:56:15,000 FROM THEIR COUNTRY AND ANOTHER 10034 07:56:15,001 --> 07:56:25,000 52 ARRESTED OVERNIGHT TO TAKE 10035 07:56:25,001 --> 07:56:26,000 THEIR PLACE? 10036 07:56:26,001 --> 07:56:29,000 BE TO. 10037 07:56:29,001 --> 07:56:33,000 HERE'S ONE OF THOSE PRISONERS. 10038 07:56:33,001 --> 07:56:35,000 LAST MONTH, A MAN NAMED ARIAEL 10039 07:56:35,001 --> 07:56:38,000 SIEGLER WAS RELEASED FROM A 10040 07:56:38,001 --> 07:56:40,000 CUBAN PRISON ON THE VERGE OF DEATH. 10041 07:56:40,001 --> 07:56:43,000 LET ME HAVE THAT BACK A MINUTE. 10042 07:56:43,001 --> 07:56:45,000 NOW, HE WAS A 250-POUND AMATEUR BOXER. 10043 07:56:45,001 --> 07:56:46,000 YOU SEE HIM THERE IN GREAT 10044 07:56:46,001 --> 07:56:48,000 HEALTH. 10045 07:56:48,001 --> 07:56:52,000 THIS IS THE PICTURE OF HIS 10046 07:56:52,001 --> 07:56:56,000 RELEASE. 10047 07:56:56,001 --> 07:56:59,000 A HUNDRED-POUND PARAPLEGIC. 10048 07:56:59,001 --> 07:57:03,000 A HUNDRED-POUND PARAPLEGIC. 10049 07:57:03,001 --> 07:57:04,000 HE DID NOTHING TO DESERVE THOSE 10050 07:57:04,001 --> 07:57:06,000 SET OF CONSEQUENCES. 10051 07:57:06,001 --> 07:57:08,000 LAST MONTH, THE REGIME ONCE 10052 07:57:08,001 --> 07:57:11,000 AGAIN REFUSED TO LET THE UNITED 10053 07:57:11,001 --> 07:57:13,000 NATIONS SPECIAL RAPATEAUR ON 10054 07:57:13,001 --> 07:57:15,000 TORTURE VISIT THE ISLAND, WHICH, 10055 07:57:15,001 --> 07:57:16,000 IN MY OWN VIEW, SPEAKS VOLUMES 10056 07:57:16,001 --> 07:57:19,000 ABOUT THE CONDITIONS OF THE 10057 07:57:19,001 --> 07:57:20,000 THOUSANDS OF CUBANS WHO HAVE 10058 07:57:20,001 --> 07:57:22,000 BEEN IMPRISONED. 10059 07:57:22,001 --> 07:57:25,000 WHEN YOU OPPOSE THE CASTRO 10060 07:57:25,001 --> 07:57:27,000 REGIME, YOU ARE CALLED DANGEROUS. 10061 07:57:27,001 --> 07:57:28,000 AND THERE IS A CHARGE OF 10062 07:57:28,001 --> 07:57:31,000 DANGEROUSNESS. 10063 07:57:31,001 --> 07:57:34,000 THOUSANDS OF CUBANS HAVE BEEN 10064 07:57:34,001 --> 07:57:38,000 SENT TO CASTRO'S PRISONS BECAUSE 10065 07:57:38,001 --> 07:57:39,000 OF DANGEROUSNESS. 10066 07:57:39,001 --> 07:57:43,000 THAT DANGEROUSNESS IS SIMPLY 10067 07:57:43,001 --> 07:57:45,000 OPPOSING THE REGIME AND SEEKING 10068 07:57:45,001 --> 07:57:47,000 CHANGE IN YOUR HOME COUNTRY. 10069 07:57:47,001 --> 07:57:49,000 AND FOR OTHER TRUMPED-UP 10070 07:57:49,001 --> 07:57:53,000 POLITICAL CHARGES. 10071 07:57:53,001 --> 07:57:54,000 NOW, IF THAT IS WHAT'S HAPPENING 10072 07:57:54,001 --> 07:57:56,000 TO THE 200 INTERNATIONALLY 10073 07:57:56,001 --> 07:57:58,000 RECOGNIZED AND KNOWN POLITICAL 10074 07:57:58,001 --> 07:58:01,000 PRISONERS, THEN HOW MUCH WORSE 10075 07:58:01,001 --> 07:58:02,000 MUST IT BE FOR THE THOUSANDS OF 10076 07:58:02,001 --> 07:58:04,000 ANONYMOUS POLITICAL PRISONERS 10077 07:58:04,001 --> 07:58:06,000 WHO HAVE NOT BEEN REPORTED 10078 07:58:06,001 --> 07:58:09,000 BECAUSE THEY FALL UNDER THE 10079 07:58:09,001 --> 07:58:10,000 CHARGE OF DANGEROUSNESS? 10080 07:58:10,001 --> 07:58:12,000 ACCORDING TO THE STATE 10081 07:58:12,001 --> 07:58:15,000 DEPARTMENT -- QUOTE -- "THE 10082 07:58:15,001 --> 07:58:16,000 TOTAL NUMBER OF DETAINEES IS 10083 07:58:16,001 --> 07:58:18,000 UNKNOWN BECAUSE THE GOVERNMENT 10084 07:58:18,001 --> 07:58:20,000 DOES NOT DISCLOSE SUCH 10085 07:58:20,001 --> 07:58:22,000 INFORMATION AND KEEPS ITS 10086 07:58:22,001 --> 07:58:25,000 PRISONS OFF-LIMITS TO HUMAN 10087 07:58:25,001 --> 07:58:27,000 RIGHTS ORGANIZATIONS AND 10088 07:58:27,001 --> 07:58:28,000 INTERNATIONAL HUMAN RIGHTS 10089 07:58:28,001 --> 07:58:30,000 MONITORS." ACCORDING AGAIN TO THE STATE 10090 07:58:30,001 --> 07:58:31,000 DEPARTMENT -- AND I QUOTE -- 10091 07:58:31,001 --> 07:58:32,000 "ONE HUMAN RIGHTS ORGANIZATION 10092 07:58:32,001 --> 07:58:34,000 LISTS MORE THAN 200 POLITICAL 10093 07:58:34,001 --> 07:58:37,000 PRISONERS CURRENTLY DETAINED IN 10094 07:58:37,001 --> 07:58:38,000 CUBA. 10095 07:58:38,001 --> 07:58:42,000 IN ADDITION TO AS MANY AS 5,000 10096 07:58:42,001 --> 07:58:45,000 PEOPLE SENTENCED FOR DANGEROUSNESS." 10097 07:58:45,001 --> 07:58:47,000 YET IN THE FACE OF THIS 10098 07:58:47,001 --> 07:58:52,000 REPRESSION, SOME MEMBERS WANT TO 10099 07:58:52,001 --> 07:58:54,000 PROVIDE THE CASTRO REGIME WITH 10100 07:58:54,001 --> 07:58:56,000 ITS NUMBER-ONE SOURCE OF INCOME: 10101 07:58:56,001 --> 07:58:58,000 TOURISM. 10102 07:58:58,001 --> 07:59:00,000 MADAM PRESIDENT, THIS ISN'T 10103 07:59:00,001 --> 07:59:03,000 ABOUT TRAVEL. 10104 07:59:03,001 --> 07:59:04,000 THIS IS ABOUT REWARDING A 10105 07:59:04,001 --> 07:59:05,000 REPRESSIVE REGIME. 10106 07:59:05,001 --> 07:59:07,000 WE ALREADY HAVE HUNDREDS OF 10107 07:59:07,001 --> 07:59:10,000 THOUSANDS OF AMERICANS WHO 10108 07:59:10,001 --> 07:59:11,000 TRAVEL TO CUBA FOR FAMILY, 10109 07:59:11,001 --> 07:59:13,000 EDUCATIONAL OR HUMANITARIAN 10110 07:59:13,001 --> 07:59:15,000 REASONS UNDER OUR EXISTING LAW, 10111 07:59:15,001 --> 07:59:21,000 BUT TOURISM TO CUBA IS A NATURAL 10112 07:59:21,001 --> 07:59:23,000 RESOURCE, AKIN TO PROVIDING 10113 07:59:23,001 --> 07:59:24,000 REFINED PETROLEUM PRODUCTS TO A 10114 07:59:24,001 --> 07:59:26,000 COUNTRY LIKE IRA 10115 07:59:26,001 --> 07:59:28,000 IT'S REPORTED THAT 2.5 MILLION 10116 07:59:28,001 --> 07:59:30,000 TOURISTS VISIT CUBA EACH YEAR. 10117 07:59:30,001 --> 07:59:32,000 1.5 MILLION FROM NORTH AMERICA. 10118 07:59:32,001 --> 07:59:33,000 A MILLION CANADIANS. 10119 07:59:33,001 --> 07:59:36,000 MORE THAN 170,000 FROM ENGLAND. 10120 07:59:36,001 --> 07:59:38,000 MORE THAN 400,000 FROM SPAIN AND 10121 07:59:38,001 --> 07:59:39,000 ITALY, GERMANY AND FRANCE 10122 07:59:39,001 --> 07:59:42,000 COMBINED. 10123 07:59:42,001 --> 07:59:44,000 ALL BRINGING IN NEARLY 10124 07:59:44,001 --> 07:59:47,000 $2 BILLION IN REVENUE TO THE 10125 07:59:47,001 --> 07:59:49,000 CASTRO REGIME. 10126 07:59:49,001 --> 07:59:53,000 AND YET NOTHING -- NOTHING -- 10127 07:59:53,001 --> 07:59:55,000 HAS CHANGED IN CUBA EXCEPT THE 10128 07:59:55,001 --> 07:59:58,000 AMOUNT OF THE TOURISM DOLLARS 10129 07:59:58,001 --> 08:00:02,000 THE REGIME HAS AT ITS DISPOSAL. 10130 08:00:02,001 --> 08:00:04,000 WHAT DOES IT DO WITH NEARLY $2 10131 08:00:04,001 --> 08:00:05,000 BILLION OF RESOURCES FROM 10132 08:00:05,001 --> 08:00:06,000 TOURISM? 10133 08:00:06,001 --> 08:00:08,000 DOES IT PUT MORE FOOD ON THE 10134 08:00:08,001 --> 08:00:10,000 PLATES OF CUBAN FAMILIES? 10135 08:00:10,001 --> 08:00:13,000 DOES IT CREATE A BETTER QUALITY 10136 08:00:13,001 --> 08:00:15,000 OF LIFE FOR THE CUBAN PEOPLE? 10137 08:00:15,001 --> 08:00:17,000 NO. 10138 08:00:17,001 --> 08:00:19,000 EVEN WITH ALL OF THAT MONEY 10139 08:00:19,001 --> 08:00:22,000 COMING IN, THE CASTRO REGIME 10140 08:00:22,001 --> 08:00:24,000 STILL RATIONS PEOPLE'S FOOD. 10141 08:00:24,001 --> 08:00:28,000 YOU HAVE TO STAND IN A LINE WITH 10142 08:00:28,001 --> 08:00:29,000 A COUPON TO GET ACCESS TO A 10143 08:00:29,001 --> 08:00:32,000 SIMPLE MEAL. 10144 08:00:32,001 --> 08:00:33,000 WAITING IN LONG LINES FOR 10145 08:00:33,001 --> 08:00:36,000 SUBSISTENCE MEAL. 10146 08:00:36,001 --> 08:00:38,000 OF COURSE, WHEN YOU RATION 10147 08:00:38,001 --> 08:00:39,000 PEOPLE AND THEY'RE ON LINE JUST 10148 08:00:39,001 --> 08:00:42,000 TRYING TO GET THE MEAL FOR THE 10149 08:00:42,001 --> 08:00:43,000 DAY, THERE'S NO TIME FOR 10150 08:00:43,001 --> 08:00:46,000 PROMOTING DEMOCRACY OR HUMAN RIGHTS. 10151 08:00:46,001 --> 08:00:48,000 YOU ARE TRYING TO JUST EXIST. 10152 08:00:48,001 --> 08:00:49,000 YOU'RE TRYING TO KEEP YOUR 10153 08:00:49,001 --> 08:00:51,000 FAMILY FED. 10154 08:00:51,001 --> 08:00:53,000 THERE IS NO TIME BUT TO STAND IN 10155 08:00:53,001 --> 08:00:54,000 LINE. 10156 08:00:54,001 --> 08:00:56,000 DESPITE SEVERAL BILLIONS OF 10157 08:00:56,001 --> 08:00:58,000 DOLLARS TO THE CASTRO REGIME 10158 08:00:58,001 --> 08:01:00,000 FROM TOURISM. 10159 08:01:00,001 --> 08:01:03,000 TO ME, THAT'S AN IRREVSIBLE 10160 08:01:03,001 --> 08:01:07,000 CONCESSION TO A REGIME THAT THIS 10161 08:01:07,001 --> 08:01:09,000 WEEK ARRESTED A CUBAN-AMERICAN 10162 08:01:09,001 --> 08:01:11,000 FOR PROVIDING LASER PRINTERS AND 10163 08:01:11,001 --> 08:01:15,000 INK CARTRIDGES TO A RURAL 10164 08:01:15,001 --> 08:01:16,000 WOMAN'S OPPOSITION MOVEMENT IN SANTIAGO. 10165 08:01:16,001 --> 08:01:18,000 HE WAS INTERROGATED. 10166 08:01:18,001 --> 08:01:21,000 THE HEAD OF THE MOVEMENT'S HOME 10167 08:01:21,001 --> 08:01:23,000 WAS RAIDED BY 1 DOZEN STATE 10168 08:01:23,001 --> 08:01:25,000 SECURITIES AGENTS. 10169 08:01:25,001 --> 08:01:26,000 THE PRINTER AND THE CARTRIDGES 10170 08:01:26,001 --> 08:01:28,000 WERE CONFISCATED. 10171 08:01:28,001 --> 08:01:32,000 WHAT A THREAT. 10172 08:01:32,001 --> 08:01:34,000 A BUNCH OF PRINTERS AND INK CARTRIDGES. 10173 08:01:34,001 --> 08:01:36,000 THREAT. 10174 08:01:36,001 --> 08:01:38,000 HE WAS SUBSEQUENTLY RELEASED AND 10175 08:01:38,001 --> 08:01:41,000 PUT ON A PLANE BACK. 10176 08:01:41,001 --> 08:01:43,000 MEANWHILE, AN AMERICAN REMAINS 10177 08:01:43,001 --> 08:01:44,000 IN PRISON FOR HELPING THE 10178 08:01:44,001 --> 08:01:47,000 ISLAND'S JEWISH COMMUNITY 10179 08:01:47,001 --> 08:01:51,000 CONNECT TO THE INTERNET. 10180 08:01:51,001 --> 08:01:53,000 AFTER SIX MONTHS IN JAIL, THIS 10181 08:01:53,001 --> 08:01:55,000 INDIVIDUAL STILL FACES NO TRIAL 10182 08:01:55,001 --> 08:01:59,000 AND NO CHARGES. 10183 08:01:59,001 --> 08:02:00,000 A UNITED STATES CITIZ JAILED 10184 08:02:00,001 --> 08:02:03,000 SIMPLY BECAUSE HE WAS TRYING TO 10185 08:02:03,001 --> 08:02:06,000 HELP THE JEWISH COMMUNITY IN 10186 08:02:06,001 --> 08:02:07,000 HAVANA BE ABLE TO ACCESS THE 10187 08:02:07,001 --> 08:02:09,000 INTERNET. 10188 08:02:09,001 --> 08:02:12,000 WHAT A CRIME. 10189 08:02:12,001 --> 08:02:14,000 WHAT A CRIME. 10190 08:02:14,001 --> 08:02:17,000 AND YET, FOR THE MOST PART, 10191 08:02:17,001 --> 08:02:19,000 WE'RE RELATIVELY SILENT. 10192 08:02:19,001 --> 08:02:21,000 THEY WERE LOOKING TO HELP THE 10193 08:02:21,001 --> 08:02:23,000 CUBAN PEOPLE, BUT THE REGIME 10194 08:02:23,001 --> 08:02:25,000 DOESN'T WANT ANYONE ENGAGING 10195 08:02:25,001 --> 08:02:26,000 WITH THE CUBAN PEOPLE. 10196 08:02:26,001 --> 08:02:29,000 THEY WANT TOURISTS TO PROVIDE 10197 08:02:29,001 --> 08:02:30,000 ONLY ONE THING: 10198 08:02:30,001 --> 08:02:32,000 HARD CURRENCY. 10199 08:02:32,001 --> 08:02:35,000 DOLLARS. 10200 08:02:35,001 --> 08:02:39,000 MONEY. 10201 08:02:39,001 --> 08:02:44,000 NOW, VISITING THE BEACHES OF 10202 08:02:44,001 --> 08:02:48,000 VALLALARA, AND SIPPING AN DRINK 10203 08:02:48,001 --> 08:02:52,000 PROVIDES MONEY TO CONTINUE RECESSION. 10204 08:02:52,001 --> 08:02:53,000 IT WON'T CHANGE 10205 08:02:53,001 --> 08:02:58,000 THE WOMEN AND WIVES. 10206 08:02:58,001 --> 08:03:02,000 THESE ARE WOMEN WHO ARE THE 10207 08:03:02,001 --> 08:03:07,000 MOTHERS, DAUGHTERS, SISTERS, 10208 08:03:07,001 --> 08:03:09,000 WIVES OF THOSE MANY POLITICAL 10209 08:03:09,001 --> 08:03:12,000 PRISONERS IN SKAS STROH JAILS 10210 08:03:12,001 --> 08:03:14,000 WHO EACH WEEK, NORMALLY ON 10211 08:03:14,001 --> 08:03:17,000 SUNDAY, MARCH DRESSED IN WHITE 10212 08:03:17,001 --> 08:03:22,000 IN PEACEFUL PROTESTS WITH A 10213 08:03:22,001 --> 08:03:24,000 GLADOLA AND SIMPLY IN DOING SO 10214 08:03:24,001 --> 08:03:26,000 ARE ULTIMATELY TRYING SAY "FREE 10215 08:03:26,001 --> 08:03:28,000 MY RELATIVE." 10216 08:03:28,001 --> 08:03:30,000 AND THIS IS THE CONSEQUENCE OF 10217 08:03:30,001 --> 08:03:32,000 WHAT THEY FACE. 10218 08:03:32,001 --> 08:03:35,000 THIS IS THE CONSEQUENCE OF WHAT 10219 08:03:35,001 --> 08:03:39,000 THEY FACE. 10220 08:03:39,001 --> 08:03:41,000 STATE SECURITY DRESSED UP AS 10221 08:03:41,001 --> 08:03:43,000 CIVILIANS ULTIMATELY, AS YOU CAN 10222 08:03:43,001 --> 08:03:46,000 SEE, ASSAULTING THEM, HURTING 10223 08:03:46,001 --> 08:03:49,000 THEM, ARRESTING THEM. 10224 08:03:49,001 --> 08:03:51,000 IT WON'T CHANGE THEIR FACE OF 10225 08:03:51,001 --> 08:03:53,000 THE WOMEN IN WHITE, AND IT WON'T 10226 08:03:53,001 --> 08:03:54,000 CHANGE THE FATE OF THE FAMILY 10227 08:03:54,001 --> 08:03:56,000 THAT REMAINS JAILED. 10228 08:03:56,001 --> 08:03:58,000 IT WON'T CHANGE THE FATE OF 10229 08:03:58,001 --> 08:04:01,000 BEING IMPRISONED BY THE REGIME 10230 08:04:01,001 --> 08:04:03,000 AND THEN BE RELEASED, AS THEY 10231 08:04:03,001 --> 08:04:05,000 HAVE DONE SO MANY TIMES WHEN 10232 08:04:05,001 --> 08:04:08,000 THERE IS SOME INTERNATIONAL 10233 08:04:08,001 --> 08:04:11,000 SPOTLIGHT ON AN INDIVIDUAL ONLY 10234 08:04:11,001 --> 08:04:13,000 TO BE REARRESTED OVER AND OVER 10235 08:04:13,001 --> 08:04:18,000 AND OVER AGAIN. 10236 08:04:18,001 --> 08:04:23,000 IT WON'T CHANGE THE TRAGIC FATE 10237 08:04:23,001 --> 08:04:25,000 OF ORLANDO SABATO DOMAYO WHO WAS 10238 08:04:25,001 --> 08:04:27,000 DEEMED BY AMNESTY INTERNATIONAL 10239 08:04:27,001 --> 08:04:29,000 OF DYING IN FEBRUARY AFTER BEING 10240 08:04:29,001 --> 08:04:33,000 ON A HUNGER STRIKE IN A CUBAN 10241 08:04:33,001 --> 08:04:36,000 PRISON FOR 85 DAYS PROTESTING 10242 08:04:36,001 --> 08:04:39,000 HORRIFIC PRISON COND 10243 08:04:39,001 --> 08:04:42,000 IT WON'T END THE DESIRE FOR 10244 08:04:42,001 --> 08:04:47,000 FREEDOM OR CHANGE CONDITIONS IN 10245 08:04:47,001 --> 08:04:48,000 CUBA FOR MEN LIKE GUILLERMO WHO 10246 08:04:48,001 --> 08:04:52,000 BEGAN HIS HUNGER STRIKE AFTER 10247 08:04:52,001 --> 08:04:54,000 THE DEATH OF ZAPO, ENDING IT 10248 08:04:54,001 --> 08:04:55,000 AFTER HE HEARD OF THE PRISONER 10249 08:04:55,001 --> 08:04:57,000 RELEASE BUT VOWING THAT HE AND 10250 08:04:57,001 --> 08:04:59,000 OTHER COURAGEOUS CUBANS WOULD 10251 08:04:59,001 --> 08:05:01,000 JOIN TOGETHER IN YET ANOTHER 10252 08:05:01,001 --> 08:05:02,000 HUNGER STRIKE IF THE 52 OTHER 10253 08:05:02,001 --> 08:05:05,000 POLITICAL PRISONERS ARE NOT 10254 08:05:05,001 --> 08:05:07,000 RELEASED AND PUT BACK IN THEIR 10255 08:05:07,001 --> 08:05:09,000 HOMES BY NOVEMBER 7. 10256 08:05:09,001 --> 08:05:10,000 THIS IS WHAT HE HAS BEEN 10257 08:05:10,001 --> 08:05:12,000 EMACIATED TO IN HIS HUNGER 10258 08:05:12,001 --> 08:05:15,000 STRIKE. 10259 08:05:15,001 --> 08:05:16,000 LIFTING THE TRAVEL BAN, ALLOWING 10260 08:05:16,001 --> 08:05:18,000 TOURIST DOLLARS TO FLOW TO THE 10261 08:05:18,001 --> 08:05:19,000 REGIME WILL NOT END ANY OF IT. 10262 08:05:19,001 --> 08:05:20,000 ITILL NOT FREE THE PEOPLE OF 10263 08:05:20,001 --> 08:05:22,000 CUBA. 10264 08:05:22,001 --> 08:05:25,000 IT WILLOT CHANGE THE FATE OF 10265 08:05:25,001 --> 08:05:29,000 THE WOMEN IN WHITE OR THE DESIRE 10266 08:05:29,001 --> 08:05:30,000 FOR FREEDOM OF GUILLERMO AND SO 10267 08:05:30,001 --> 08:05:31,000 MANY OTHER PRETTY WELL 10268 08:05:31,001 --> 08:05:33,000 PRISONERS. 10269 08:05:33,001 --> 08:05:34,000 IT WILL ONLY ENRICH THE REGIME. 10270 08:05:34,001 --> 08:05:38,000 NOW REPORTS THIS WEEK HAVE 10271 08:05:38,001 --> 08:05:39,000 POINTED OUT THE ECONOMIC IMPACT 10272 08:05:39,001 --> 08:05:42,000 OPENING TRAVEL TO CUBA WILL 10273 08:05:42,001 --> 08:05:45,000 CAUSE TO THE GULF STATES, LIKE 10274 08:05:45,001 --> 08:05:46,000 WHAT THE VIRGIN ISLANDS OUR 10275 08:05:46,001 --> 08:05:47,000 OTHER DEMOCRATIC NEIGHBORS IN 10276 08:05:47,001 --> 08:05:48,000 THE CARIBBEAN. 10277 08:05:48,001 --> 08:05:50,000 THE DOLLARS THAT WILL BE 10278 08:05:50,001 --> 08:05:52,000 TRANSFERRED FROM THOSE TOURISM 10279 08:05:52,001 --> 08:05:54,000 ECONOMIES SHOULD BE FOR T 10280 08:05:54,001 --> 08:05:56,000 BENEFIT OF A DEMOCRATIC 10281 08:05:56,001 --> 08:06:01,000 GOVERNMENT IN A FREE CUBA, NOT 10282 08:06:01,001 --> 08:06:03,000 TO BAIL OUT A BRUTAL REGIME. 10283 08:06:03,001 --> 08:06:05,000 BUTASTROS DON'T DESERVE IT AND 10284 08:06:05,001 --> 08:06:06,000 THE U.S. GULF STATES AND OUR 10285 08:06:06,001 --> 08:06:07,000 CARIBBEAN FRIENDS CAN'T AFFORD 10286 08:06:07,001 --> 08:06:12,000 IT. 10287 08:06:12,001 --> 08:06:14,000 ACCORDING TO THE JAMAICA DAILY, 10288 08:06:14,001 --> 08:06:16,000 "THE RESULTS OF THE VARIOUS 10289 08:06:16,001 --> 08:06:19,000 STUDIES OF THE LIKE LAY IMPACT 10290 08:06:19,001 --> 08:06:21,000 OF LIFTING OF U.S. TRAVEL BANS 10291 08:06:21,001 --> 08:06:23,000 SUGGESTS THAT CUBA'S TOURISM 10292 08:06:23,001 --> 08:06:25,000 ARRIVAL WOULD SURGE TO FULL 10293 08:06:25,001 --> 08:06:28,000 CAPACITY AT THE EXPENSE OF OTHER 10294 08:06:28,001 --> 08:06:31,000 CARIBBEAN DESTINATIONS. 10295 08:06:31,001 --> 08:06:33,000 APART FROM PRACTICALLY PUERTO 10296 08:06:33,001 --> 08:06:36,000 RICO AND THE U.S. VIRGIN ISLANDS 10297 08:06:36,001 --> 08:06:38,000 AND THE MOST VULNERABLE SHOULD 10298 08:06:38,001 --> 08:06:43,000 THE LEGISLATION TO LIFT THE 10299 08:06:43,001 --> 08:06:44,000 TRAVEL PASS ULTIMATELY INCLUDE 10300 08:06:44,001 --> 08:06:47,000 MANY OF THE ISLANDS IN THE 10301 08:06:47,001 --> 08:06:48,000 CARIBBEAN WHO WOULD HAVE 10302 08:06:48,001 --> 08:06:49,000 ENORMOUS ECONOMIC DAMAGE TO 10303 08:06:49,001 --> 08:06:50,000 THEM." 10304 08:06:50,001 --> 08:06:52,000 IT SEEMS TO ME, MADAM PRESIDENT, 10305 08:06:52,001 --> 08:06:54,000 WE SHOULD BE PROMOTING TOURISM 10306 08:06:54,001 --> 08:06:56,000 TO THE BEACHES ALONG THE GULF 10307 08:06:56,001 --> 08:06:58,000 COAST, NOT TO THE APARTHEID 10308 08:06:58,001 --> 08:07:00,000 BEACHES OF CASTRO'S CUBA. 10309 08:07:00,001 --> 08:07:04,000 YOU KNOW, YOU'RE NOT EVEN 10310 08:07:04,001 --> 08:07:07,000 ALLOWED, AS A CUBAN CITIZEN, TO 10311 08:07:07,001 --> 08:07:11,000 GO TO THE BEACHES -- MANY OF THE 10312 08:07:11,001 --> 08:07:13,000 BEACHES YOUR OWN HOME LAND 10313 08:07:13,001 --> 08:07:16,000 BECAUSE THEY ARE RESERVED FOR 10314 08:07:16,001 --> 08:07:19,000 TOURISTS. 10315 08:07:19,001 --> 08:07:24,000 YOU CAN'T ENTER SOME OF THE 10316 08:07:24,001 --> 08:07:28,000 HOTELS UNLESS A TOURIST IN YOUR 10317 08:07:28,001 --> 08:07:30,000 OWN COUNTRY BRINGS YOU IN. 10318 08:07:30,001 --> 08:07:32,000 THAT'S WHY WE CALL IT APARTHEID. 10319 08:07:32,001 --> 08:07:36,000 YOU CANNOT HAVE ACCESS IN YOUR 10320 08:07:36,001 --> 08:07:37,000 OWN HOMELAND -- IMAGINE IN MY 10321 08:07:37,001 --> 08:07:39,000 HOME STATE OF NEW JERSEY WE LOVE 10322 08:07:39,001 --> 08:07:41,000 THE NEW JERSEY SHORE. 10323 08:07:41,001 --> 08:07:42,000 IMAGINE ME AS A NEW JERSEYAN NOT 10324 08:07:42,001 --> 08:07:44,000 BEING ABLE TO GO TO ANY OF THE 10325 08:07:44,001 --> 08:07:46,000 BEACHES IN NEW JERSEY BECAUSE 10326 08:07:46,001 --> 08:07:48,000 THE GOVERNMENT WANTS TO RESTRICT 10327 08:07:48,001 --> 08:07:51,000 ME FROM INTERACTING WITH TOURISTS. 10328 08:07:51,001 --> 08:07:53,000 AND THAT THOSE PEACHES BEACHES 10329 08:07:53,001 --> 08:07:56,000 WOULD BE RESERVED ONLY FOR 10330 08:07:56,001 --> 08:07:57,000 FOREIGN TIEFORTS IN MY OWN HOME 10331 08:07:57,001 --> 08:07:58,000 STATE IN MY OWN HOME COUNTRY. 10332 08:07:58,001 --> 08:07:59,000 THAT IS WHAT GOES ON. 10333 08:07:59,001 --> 08:08:01,000 ALLOWING THE REGIME TO BENEFIT 10334 08:08:01,001 --> 08:08:02,000 FROM INCREASED TOURISM WILL NOT 10335 08:08:02,001 --> 08:08:04,000 ANGE A THING IN CUBA. 10336 08:08:04,001 --> 08:08:05,000 IT WILL NOT BRING DEMOCRACY TO 10337 08:08:05,001 --> 08:08:07,000 CUBANS. 10338 08:08:07,001 --> 08:08:09,000 IT WILL NOT MAKE CONDITIONS FOR 10339 08:08:09,001 --> 08:08:10,000 THE CUBAN PEOPLE ANY BETTER OR 10340 08:08:10,001 --> 08:08:12,000 CHANGE THE HISTORY OF THE 10341 08:08:12,001 --> 08:08:13,000 BRUTALITY OF THE CASTRO REGIME, 10342 08:08:13,001 --> 08:08:15,000 A BRUTALITY THAT CONTINUES TO 10343 08:08:15,001 --> 08:08:17,000 THIS DAY. 10344 08:08:17,001 --> 08:08:19,000 AND SOMETIMES I THINK SOME OF MY 10345 08:08:19,001 --> 08:08:20,000 COLLEAGUES JUST DON'T HAVE A 10346 08:08:20,001 --> 08:08:22,000 SENSE -- 10347 08:08:22,001 --> 08:08:23,000 THIS IS NOT USING THE WORD 10348 08:08:23,001 --> 08:08:25,000 "BRUTALITY" R SAKE OF IT. 10349 08:08:25,001 --> 08:08:27,000 I THINK THE PICTURES TELL 1,000 10350 08:08:27,001 --> 08:08:29,000 WORDS. 10351 08:08:29,001 --> 08:08:32,000 BUT I WOULD LIKE MY FRIENDS HERE 10352 08:08:32,001 --> 08:08:35,000 IN THE SENATE AND OTHERS BEYOND 10353 08:08:35,001 --> 08:08:37,000 WHO MAY NOT REALLY HAVE FULLY 10354 08:08:37,001 --> 08:08:39,000 ENGAGED IN UNDERSTANDING WHAT 10355 08:08:39,001 --> 08:08:42,000 THIS BRUTALITY IS ALL ABOUT TO 10356 08:08:42,001 --> 08:08:45,000 RECALL THE WORDS OF ARMANDO WHO 10357 08:08:45,001 --> 08:08:46,000 WROTE THE PRIZE-WINNING BOOK, 10358 08:08:46,001 --> 08:08:49,000 "AGAINST ALL HOPE." 10359 08:08:49,001 --> 08:08:51,000 HE WAS IMPRISONED IN THE 10360 08:08:51,001 --> 08:08:53,000 INFAMOUS PRISON IN 1960 FOR HIS 10361 08:08:53,001 --> 08:08:54,000 OPPOSITION TO COMMUNISM. 10362 08:08:54,001 --> 08:08:57,000 HE LIVED THROUGH THE HELT HELL 10363 08:08:57,001 --> 08:08:58,000 OF CASTRO'S JAIL, SUFFERING 10364 08:08:58,001 --> 08:09:00,000 VIOLENCE, FORCED LABOR, AND 10365 08:09:00,001 --> 08:09:03,000 SOLITAIRE CONFINEMENT. 10366 08:09:03,001 --> 08:09:04,000 HIS WRITINGS WERE SMUGGLED OUT 10367 08:09:04,001 --> 08:09:06,000 OF CUBA, READ THROUGHOUT THE 10368 08:09:06,001 --> 08:09:09,000 WORLD, AND H WAS FINALLY 10369 08:09:09,001 --> 08:09:12,000 RELEASED AFTER INTENSE 10370 08:09:12,001 --> 08:09:14,000 INTERNATIONAL PRESSURE 22 YEARS 10371 08:09:14,001 --> 08:09:16,000 AFTER HE WAS TAKEN PRISONER. 10372 08:09:16,001 --> 08:09:17,000 THEY HAD TO REHABILITATE HIM 10373 08:09:17,001 --> 08:09:19,000 BECAUSE THEY DIDN'T WANT HIM 10374 08:09:19,001 --> 08:09:21,000 RELEASED AND SHOWN TO THE WORLD 10375 08:09:21,001 --> 08:09:23,000 IN THE CIRCUMSTANCES THAT SOME 10376 08:09:23,001 --> 08:09:25,000 OF THESE PRISONE ARE. 10377 08:09:25,001 --> 08:09:27,000 HERE ARE SOME OF HIS MEMORIES OF 10378 08:09:27,001 --> 08:09:29,000 A ACTIVITY -- CAPTIVITY AT THE 10379 08:09:29,001 --> 08:09:31,000 NDS OF THE CASTRO BROTHERS 10380 08:09:31,001 --> 08:09:36,000 THESE ARE HIS WORDS. 10381 08:09:36,001 --> 08:09:38,000 QUOTE -- "I RECALL 10382 08:09:38,001 --> 08:09:43,000 SERGEANTS, PLUNGING THEIR 10383 08:09:43,001 --> 08:09:45,000 BAYONETS INTO ERNESTO'S BODY. 10384 08:09:45,001 --> 08:09:47,000 ONE OF THE POLITICAL PRISONERS 10385 08:09:47,001 --> 08:09:49,000 DENIED WATER AFTER MORE THAN 50 10386 08:09:49,001 --> 08:09:53,000 DAYS ON A HUNGER STRIKE BECAUSE 10387 08:09:53,001 --> 08:09:55,000 CASTRO WANTED HIM DEAD. 10388 08:09:55,001 --> 08:10:00,000 HIS POOR MOTHER BEATEN BY 10389 08:10:00,001 --> 08:10:02,000 LIEUTENANT ABAD IN A POLITICAL 10390 08:10:02,001 --> 08:10:03,000 POLICE STATION JUST BECAUSE SHE 10391 08:10:03,001 --> 08:10:04,000 WANTED TO FIND OUT WHERE HER SON 10392 08:10:04,001 --> 08:10:06,000 WAS BURIED. 10393 08:10:06,001 --> 08:10:09,000 OFFICERS THREATENED FAMILY 10394 08:10:09,001 --> 08:10:13,000 MEMBERS IF THEY CRIED AT A FUNERAL. 10395 08:10:13,001 --> 08:10:15,000 I REMEMBER ESTAVITA DYING IN 10396 08:10:15,001 --> 08:10:17,000 BLACKOUT CELLS, THE VICTIMS OF 10397 08:10:17,001 --> 08:10:19,000 BIOLOGICAL EXPERIMENTATION. 10398 08:10:19,001 --> 08:10:21,000 SO MANY OTHERS MURDERED IN THE 10399 08:10:21,001 --> 08:10:24,000 FORCED LABOR FIELDS, QUARERIES 10400 08:10:24,001 --> 08:10:25,000 AND CAMPS, A LEGION OF SPECTORS 10401 08:10:25,001 --> 08:10:27,000 NAKED, CRIPPLED, HOBBLING AND 10402 08:10:27,001 --> 08:10:30,000 CRAWLING THROUGH MY MIND AND THE 10403 08:10:30,001 --> 08:10:33,000 HUNDREDS OF MEN MUTILATED IN THE 10404 08:10:33,001 --> 08:10:35,000 HORRIFYING SEARCHES. 10405 08:10:35,001 --> 08:10:37,000 EDUARDO'S FINGERS CHOPPED OFF BY 10406 08:10:37,001 --> 08:10:40,000 A MA CHETTY. 10407 08:10:40,001 --> 08:10:41,000 CONCENTRATION CAMPS, TORTURERS, 10408 08:10:41,001 --> 08:10:43,000 WOMEN BEATEN. 10409 08:10:43,001 --> 08:10:44,000 IN THE MIDST OF THAT APOCALYPTIC 10410 08:10:44,001 --> 08:10:46,000 VISION OF THE MOST DREADFUL AND 10411 08:10:46,001 --> 08:10:49,000 HORRIFYING MOMENTS IN MY LIFE, 10412 08:10:49,001 --> 08:10:51,000 IN THE MIDST OF THE GRAY, ASHY 10413 08:10:51,001 --> 08:10:53,000 DUST AND THE ORGY OF BEATINGS 10414 08:10:53,001 --> 08:10:56,000 AND BLOOD, PRISONERS BEATEN TO 10415 08:10:56,001 --> 08:10:59,000 THE GROUND, A MAN EMERGED. 10416 08:10:59,001 --> 08:11:01,000 THE SKELETAL FIGURE OF A MAN 10417 08:11:01,001 --> 08:11:04,000 WASTED B HUNGER WITH WHITE 10418 08:11:04,001 --> 08:11:05,000 HAIR, BLAZING BLUE EYES, AND A 10419 08:11:05,001 --> 08:11:07,000 HEART OVERFLOWING WITH LOVE, 10420 08:11:07,001 --> 08:11:09,000 RAISING HIS ARMS TO THE 10421 08:11:09,001 --> 08:11:13,000 INVISIBLE HEAVEN AND PLEADING 10422 08:11:13,001 --> 08:11:15,000 FOR MERCY FOR HIS EXECUTIONERS. 10423 08:11:15,001 --> 08:11:17,000 'FORGIVE THEM, FATHERS, FOR THEY 10424 08:11:17,001 --> 08:11:21,000 KNOW NOT WHAT THEY DO.' 10425 08:11:21,001 --> 08:11:24,000 AND A BURST OF MACHINE GUN FIRE 10426 08:11:24,001 --> 08:11:27,000 RIPPING THROUGH HIS CHEST. 10427 08:11:27,001 --> 08:11:29,000 ""I HOPE MY COLLEAGUES REMEMBER 10428 08:11:29,001 --> 08:11:31,000 THESE ARE THE REALITIES OF 10429 08:11:31,001 --> 08:11:33,000 CASTRO'S PRISONS. 10430 08:11:33,001 --> 08:11:34,000 THESE RILLET REALITIES, THESE 10431 08:11:34,001 --> 08:11:36,000 MEMORIES OF ARMANDO AND OTHERS 10432 08:11:36,001 --> 08:11:39,000 BEFORE WE THINK ABOUT REWARDING 10433 08:11:39,001 --> 08:11:40,000 THE CASTRO REGIME IN ANY WAY. 10434 08:11:40,001 --> 08:11:42,000 THEIR SINS ARE TOO GREAT AND 10435 08:11:42,001 --> 08:11:44,000 THIS IS NOT A THING OF THE PAST. 10436 08:11:44,001 --> 08:11:46,000 THEIR BRUTALITY AND REPRESSION 10437 08:11:46,001 --> 08:11:48,000 HAVE BEEN GOING ON SINCE THE 10438 08:11:48,001 --> 08:11:49,000 INCEPTION AND STILL GO ON TODAY. 10439 08:11:49,001 --> 08:11:51,000 IT HAS NEVER STOPPED. 10440 08:11:51,001 --> 08:11:53,000 IT HAS NEVER GOTTEN BETTER. 10441 08:11:53,001 --> 08:11:56,000 IT HAS NEVER CHANGED. 10442 08:11:56,001 --> 08:11:59,000 AND IT NEVER WILL, FOR SO LONG 10443 08:11:59,001 --> 08:12:00,000 AS THE REGIME IS IN POWER. 10444 08:12:00,001 --> 08:12:02,000 WHEN I HEAR MY COLLEAGUES COME 10445 08:12:02,001 --> 08:12:04,000 TO THE FLOOR AND TALK ABOUT 10446 08:12:04,001 --> 08:12:06,000 LIFTING THE TRAVEL BAN, I'M 10447 08:12:06,001 --> 08:12:07,000 COMPELLED TO ASK, WHY IS THERE 10448 08:12:07,001 --> 08:12:09,000 SUCH AN OBVIOUS DOUBLE STANDARD 10449 08:12:09,001 --> 08:12:11,000 WHEN IT COMES TO CUBA? 10450 08:12:11,001 --> 08:12:12,000 WHY ARE THE GULAGS OF CUBA SO 10451 08:12:12,001 --> 08:12:14,000 DIFFERENT THAN THE GULAGS OF 10452 08:12:14,001 --> 08:12:16,000 OTHER PLACES IN THE WORLD? 10453 08:12:16,001 --> 08:12:18,000 WHY ARE WE WILLING TO TIGHTEN 10454 08:12:18,001 --> 08:12:21,000 SANCTIONS AGAINST SOME BUT 10455 08:12:21,001 --> 08:12:23,000 LOOSEN THEM WHEN IT COMES TO AN 10456 08:12:23,001 --> 08:12:24,000 EQUALLY REPRESSIVE REGIME IN 10457 08:12:24,001 --> 08:12:26,000 CUBA, NEIVELG REWARDING THEM? 10458 08:12:26,001 --> 08:12:27,000 TBH IT COMES TO CUBA, WHY ARE WE 10459 08:12:27,001 --> 08:12:32,000 SO WILLING TO THROW UP OUR HANDS 10460 08:12:32,001 --> 08:12:33,000 AND SAY, IT'S TIME TO FORGET? 10461 08:12:33,001 --> 08:12:35,000 WELL, MADAM PRESIDENT, I DON'T 10462 08:12:35,001 --> 08:12:37,000 BELIEVE IT'S TIME TO FORTH. 10463 08:12:37,001 --> 08:12:39,000 WE CAN NEVER FORTH HOSE WHO 10464 08:12:39,001 --> 08:12:43,000 SAWRCHEDZ DIED AT THE HAND OF 10465 08:12:43,001 --> 08:12:44,000 DICTATORS, WHERE EVER. 10466 08:12:44,001 --> 08:12:47,000 IT IS CLEAR THE OPPRESSION 10467 08:12:47,001 --> 08:12:48,000 CONTINUES UNABATED, 10468 08:12:48,001 --> 08:12:49,000 NOTWITHSTANDING THE EMBARGO, 10469 08:12:49,001 --> 08:12:51,000 NOTWITHSTANDING CALLS THAT WANT 10470 08:12:51,001 --> 08:12:53,000 US TO EASE TRAVEL RESTRICTIONS, 10471 08:12:53,001 --> 08:12:54,000 EA SANCTIONS, NOTWITHSTANDING 10472 08:12:54,001 --> 08:12:55,000 THE FACT THAT YOU HAVE MILLIONS 10473 08:12:55,001 --> 08:12:57,000 OF VISITORS FROM OTHER PLACES IN 10474 08:12:57,001 --> 08:13:00,000 THE WORLD BRINGING BILLIONS OF 10475 08:13:00,001 --> 08:13:01,000 DOLLARS AND STILL THE REPRESSION 10476 08:13:01,001 --> 08:13:03,000 GOES ON. 10477 08:13:03,001 --> 08:13:04,000 IN GOOD CONSCIENCE, I CANNOT DO 10478 08:13:04,001 --> 08:13:06,000 THAT. 10479 08:13:06,001 --> 08:13:08,000 AND I WILL NOT STEP BACK. 10480 08:13:08,001 --> 08:13:11,000 I'VE COME IN THIS FLOOR IN THE 10481 08:13:11,001 --> 08:13:14,000 PAST TO OPPOSE ANY ATTEMPT IN 10482 08:13:14,001 --> 08:13:16,000 ORDER TO DO THAT, TO PASS ANY 10483 08:13:16,001 --> 08:13:19,000 BILL THAT IN HE SENSE LIFTS THE 10484 08:13:19,001 --> 08:13:21,000 TRAVEL BAN ON CUBA. 10485 08:13:21,001 --> 08:13:23,000 AND I WILL CONTINUE TO DO SO. 10486 08:13:23,001 --> 08:13:25,000 I WILL CONTINUE TO DO SO UNTIL 10487 08:13:25,001 --> 08:13:27,000 WE HAVE THE OPPORTUNITY TO MAKE 10488 08:13:27,001 --> 08:13:28,000 SURE THAT THE CUBAN PEOPLE ARE 10489 08:13:28,001 --> 08:13:30,000 ULTIMATELY FREE. 10490 08:13:30,001 --> 08:13:31,000 MAKE SURE THAT THEY HAVE THE 10491 08:13:31,001 --> 08:13:34,000 BASIC FUNDAMENTAL RIGHTS THAT 10492 08:13:34,001 --> 08:13:36,000 YOU AND I ENJOY HERE IN THIS 10493 08:13:36,001 --> 08:13:39,000 GREAT COUNTRY AND TO ENSURE THAT 10494 08:13:39,001 --> 08:13:40,000 ALL OF THOSE WHO LANGUISH IN 10495 08:13:40,001 --> 08:13:45,000 CASTRO'S JAILS FOR WHICH THE 10496 08:13:45,001 --> 08:13:49,000 WORLD SEEMS TO BE DEAF TO, 10497 08:13:49,001 --> 08:13:51,000 CANNOT HEAR THEIR CRIES, DOES 10498 08:13:51,001 --> 08:13:52,000 T SEEM TO CARE, DOES NOT SEEM 10499 08:13:52,001 --> 08:13:55,000 TO SPEAK ABOUT DOES NOT DO 10500 08:13:55,001 --> 08:13:56,000 ANYTHING ABOUT, WILL CONTINUE TO 10501 08:13:56,001 --> 08:13:57,000 RAISE THEI 10502 08:13:57,001 --> 08:13:58,000 CHAMBER AND BEYOND. 10503 08:13:58,001 --> 08:13:59,000 WITH THAT, MADAM PRESIDENT, I 10504 08:13:59,001 --> 08:14:01,000 YIELD THE FLOOR. 10505 08:14:01,001 --> 08:14:02,000 AND I OBSERVE THE ABSENCE 10506 08:14:02,001 --> 08:14:03,000 QUORUM. 10507 08:14:03,001 --> 08:14:07,000 THE PRESIDING OFFICER: THE 10508 08:14:07,001 --> 08:14:32,000 CLERK WILL 10509 08:14:32,001 --> 08:16:53,000 QUORUM CALL: 10510 08:16:53,001 --> 08:16:54,000 QUORUM CALL: 10511 08:16:54,001 --> 08:16:55,000 MR. DORGAN: MADAM PRESIDENT? THE PRESIDING OFFICER: THE 10512 08:16:55,001 --> 08:16:56,000 SENATOR FROM NORTH DAKOTA. 10513 08:16:56,001 --> 08:16:58,000 MR. DORGAN: MADAM PRESIDENT, I 10514 08:16:58,001 --> 08:17:00,000 MAKE A POINT OFRDER THAT -- 10515 08:17:00,001 --> 08:17:01,000 LET ME 10516 08:17:01,001 --> 08:17:02,000 BE VACATED, MADAM PRESIDENT. 10517 08:17:02,001 --> 08:17:03,000 THE PRESIDING OFFICER: WITHOUT 10518 08:17:03,001 --> 08:17:04,000 OBJECTION. MR. DORGAN: MADAM PRESIDENT, 10519 08:17:04,001 --> 08:17:07,000 SOMETIMES ON THE FLOOR OF THE 10520 08:17:07,001 --> 08:17:10,000 UNITED STATES SENATE GOOD 10521 08:17:10,001 --> 08:17:13,000 FRIENDS DISAGREE, PERHAPS IS NOT 10522 08:17:13,001 --> 08:17:14,000 AS OFTEN AS SOME WOULD THINK. 10523 08:17:14,001 --> 08:17:16,000 BUT ON OCCASION, THAT'S THE 10524 08:17:16,001 --> 08:17:18,000 CASE, AND IT'S THE CASE TODAY 10525 08:17:18,001 --> 08:17:19,000 WHEN I OBSERVED AND LISTENED TO 10526 08:17:19,001 --> 08:17:20,000 A PRESENTATION BY MY COLLEAGUE 10527 08:17:20,001 --> 08:17:21,000 FROM NEW JERSEY ON THE SUBJECT 10528 08:17:21,001 --> 08:17:23,000 OF CUBA. 10529 08:17:23,001 --> 08:17:26,000 I'M SURE WE DON'T DISAGREE ABOUT 10530 08:17:26,001 --> 08:17:28,000 SOME PARTS OF THIS SUBJECT -- 10531 08:17:28,001 --> 08:17:33,000 THAT IS I DON'T LIKE THE CUBAN GOVERNMENT. 10532 08:17:33,001 --> 08:17:37,000 I WANT FREEDOM FOR THE CUBAN 10533 08:17:37,001 --> 08:17:39,000 PEOPLE WE, I ASSUME BOTH BELIEVE 10534 08:17:39,001 --> 08:17:40,000 THAT AND BELIEVE THE POLITICAL 10535 08:17:40,001 --> 08:17:42,000 PRISONERS IN CUBA THAT LANGUISH 10536 08:17:42,001 --> 08:17:45,000 IN CUBAN JAILS FOR EXERCISING 10537 08:17:45,001 --> 08:17:52,000 THE RIGHT OF FREE SPEECH ARE 10538 08:17:52,001 --> 08:17:54,000 DOING THAT IN THE DARK CELLS I 10539 08:17:54,001 --> 08:17:55,000 A MANNER THAT IS WHOLLY UNFAIR. 10540 08:17:55,001 --> 08:17:57,000 WE SHOULD AS A COUNTRY DO 10541 08:17:57,001 --> 08:17:59,000 EVERYTHING WE CAN TO TRY TO 10542 08:17:59,001 --> 08:18:00,000 BRING THE VESTIGES OF FREEDOM TO 10543 08:18:00,001 --> 08:18:01,000 THE CUBAN PEOPLE. 10544 08:18:01,001 --> 08:18:02,000 I UNDERSTAND ALL THAT. 10545 08:18:02,001 --> 08:18:04,000 I SUPPORT THAT STRONGLY. 10546 08:18:04,001 --> 08:18:07,000 I'VE BEEN TO CUBA. 10547 08:18:07,001 --> 08:18:09,000 I'VE SPOKEN TO CUBA GOVERNMENT 10548 08:18:09,001 --> 08:18:11,000 LEADERS, I'VE SPOKEN TO 10549 08:18:11,001 --> 08:18:12,000 DISSIDENTS, I'VE SPOKEN TO 10550 08:18:12,001 --> 08:18:17,000 PEOPLE ON THE STREETS OF CUE 10551 08:18:17,001 --> 08:18:18,000 PWAFPLT I WANT CUBA -- OF CUBA. 10552 08:18:18,001 --> 08:18:19,000 I WANT 10553 08:18:19,001 --> 08:18:21,000 COUNTRY. 10554 08:18:21,001 --> 08:18:23,000 LET ME DESCRIBE HOW LONG CUBA 10555 08:18:23,001 --> 08:18:26,000 HAS HAD COMMUNIST RULE AND, BY 10556 08:18:26,001 --> 08:18:27,000 THE WAY, HOW MANY PRESIDENTS 10557 08:18:27,001 --> 08:18:30,000 THAT COMMUNIST RULE AND, 10558 08:18:30,001 --> 08:18:32,000 THEREFORE, THE EMBARGO THAT'S 10559 08:18:32,001 --> 08:18:34,000 BEEN LEVELED AGAINST CUBA ALL OF 10560 08:18:34,001 --> 08:18:36,000 THESE YEARS, LET ME DESCRIBE HOW 10561 08:18:36,001 --> 08:18:38,000 MANY PRESIDENTS THAT EMBARGO 10562 08:18:38,001 --> 08:18:39,000 EXISTED THROUGH. 10563 08:18:39,001 --> 08:18:41,000 THE PRESIDENCY BEGINNING WITH 10564 08:18:41,001 --> 08:18:42,000 JOHN F. KENNEDY AND THROUGH THIS 10565 08:18:42,001 --> 08:18:44,000 ADMINISTRATION. 10566 08:18:44,001 --> 08:18:47,000 THAT'S TEN PRESIDENCY IS IS. 10567 08:18:47,001 --> 08:18:48,000 WE SLAPPED -- THAT'S TEN 10568 08:18:48,001 --> 08:18:51,000 PRESIDENT DEN SEUS. 10569 08:18:51,001 --> 08:18:52,000 WE SLAPPED AN EMBARGO AGAINST 10570 08:18:52,001 --> 08:18:54,000 CUBA AND PUNISHED THE AMERICAN 10571 08:18:54,001 --> 08:18:55,000 PEOPLE IN THE PROCESS BY SAYING 10572 08:18:55,001 --> 08:18:58,000 WE'RE GOING TO LIMIT YOUR RIGHT 10573 08:18:58,001 --> 08:19:01,000 TO TRAVEL TO CUBA AND SHUT OFF 10574 08:19:01,001 --> 08:19:03,000 ALL COMMERCE TO CUBA, INCLUDING 10575 08:19:03,001 --> 08:19:07,000 RESTRICTIONS ON SENDING FOOD AND 10576 08:19:07,001 --> 08:19:08,000 MEDICINE TO CUE PWAFPLT THE 10577 08:19:08,001 --> 08:19:09,000 EMBARGO HASN'T SEEMED TO WORK 10578 08:19:09,001 --> 08:19:11,000 VERY WELL. 10579 08:19:11,001 --> 08:19:12,000 IT'S NOW 50 YEARS OLD AND IT 10580 08:19:12,001 --> 08:19:14,000 STILL EXISTS. 10581 08:19:14,001 --> 08:19:15,000 WELL, WHAT HAS HAPPENED AS A 10582 08:19:15,001 --> 08:19:18,000 RESULT OF THE EMBARGO? 10583 08:19:18,001 --> 08:19:20,000 WE HAVE NOW A DEBATE ABOUT WHAT 10584 08:19:20,001 --> 08:19:22,000 SHOULD HAPPEN WITH RESPECT TO 10585 08:19:22,001 --> 08:19:24,000 OUR RELATIONSHIP TO CUBA AT THIS POINT. 10586 08:19:24,001 --> 08:19:25,000 MY COLLEAGUES SAY, DON'T DO 10587 08:19:25,001 --> 08:19:26,000 ANYTHING THAT WLD REWARD THE 10588 08:19:26,001 --> 08:19:28,000 CUBAN GOVERNMENT. FAR FROM IT. 10589 08:19:28,001 --> 08:19:30,000 I HAVE NO INTEREST IN REWARDING 10590 08:19:30,001 --> 08:19:32,000 A GOVERNMENT THAT I 10591 08:19:32,001 --> 08:19:33,000 SUBSTANTIALLY DISAGREE WITH, A 10592 08:19:33,001 --> 08:19:34,000 GOVERNMENT THAT I BELIEVE THROWS 10593 08:19:34,001 --> 08:19:36,000 INNOCENT PEOPLE IN JAIL. 10594 08:19:36,001 --> 08:19:37,000 I HAVE NO INTEREST, NOR DO THE 10595 08:19:37,001 --> 08:19:39,000 PEOPLE WHO SUPPORT THE BILL THAT 10596 08:19:39,001 --> 08:19:40,000 SENATOR ENZI AND I HAVE NOW 10597 08:19:40,001 --> 08:19:42,000 OFFERED IN THE UNITED STATES 10598 08:19:42,001 --> 08:19:43,000 SENATE WITH 40 SENATORS 10599 08:19:43,001 --> 08:19:44,000 COSPONSORING IT. 10600 08:19:44,001 --> 08:19:45,000 WE HAVE NO INTEREST IN REWARDING 10601 08:19:45,001 --> 08:19:47,000 THE CUBAN GOVERNMENT. 10602 08:19:47,001 --> 08:19:50,000 THAT IS NOT THE ISSUE. 10603 08:19:50,001 --> 08:19:52,000 BUT WE DO BELIEVE THAT THE 10604 08:19:52,001 --> 08:19:54,000 RESTRICTION ON THE AMERICAN 10605 08:19:54,001 --> 08:19:55,000 PEOPLE'S RIGHTS, THE DECISION BY 10606 08:19:55,001 --> 08:19:56,000 A GOVERNMENT THAT SAYS WE'RE 10607 08:19:56,001 --> 08:19:58,000 GOING TO TELL THE AMERICAN 10608 08:19:58,001 --> 08:19:59,000 PEOPLE WHERE YOU CAN AND CAN'T 10609 08:19:59,001 --> 08:20:00,000 TRAVEL. 10610 08:20:00,001 --> 08:20:02,000 WE BELIEVE THAT'S INAPPROPRIATE, 10611 08:20:02,001 --> 08:20:03,000 AND WE DO BELIEVE THAT OUGHT TO 10612 08:20:03,001 --> 08:20:05,000 CHANGE. 10613 08:20:05,001 --> 08:20:07,000 SO WHAT I'D LIKE TO DO IS TALK 10614 08:20:07,001 --> 08:20:08,000 ABOUT A COUPLE THINGS, 10615 08:20:08,001 --> 08:20:10,000 INCLUDING, NUMBER ONE, LIFTING 10616 08:20:10,001 --> 08:20:13,000 THE TRAVEL BAN TO CUBA AND 10617 08:20:13,001 --> 08:20:16,000 MAKING IT EASIER TO SELL FOOD TO CUBA. 10618 08:20:16,001 --> 08:20:19,000 I WAS THE PERSON WHO CHANGED THE 10619 08:20:19,001 --> 08:20:21,000 LAW TEN YEARS AGO THAT ALLOWED 10620 08:20:21,001 --> 08:20:23,000 FOR THE FIRST TIME JUST A CRACK 10621 08:20:23,001 --> 08:20:26,000 IN THIS EMBARGO THAT ALLOWS US 10622 08:20:26,001 --> 08:20:28,000 TO SELL FOOD INTO CUBA IF IT'S 10623 08:20:28,001 --> 08:20:30,000 PAID FOR WITH CASH. 10624 08:20:30,001 --> 08:20:33,000 I THINK IT'S IMMORAL FOR A 10625 08:20:33,001 --> 08:20:34,000 COUNTRY TO USE FOOD AS A FOREIGN POLICY WEAPON. 10626 08:20:34,001 --> 08:20:36,000 I DON'T THINK FOOD OUGHT TO BE 10627 08:20:36,001 --> 08:20:40,000 PART OF ANY EMBARGO. 10628 08:20:40,001 --> 08:20:42,000 THAT I THINK'S IMMORAL. 10629 08:20:42,001 --> 08:20:44,000 BY THE WAY, USING FOOD AS A PART 10630 08:20:44,001 --> 08:20:46,000 OF AN EMBARGO, THAT JUST HURTS 10631 08:20:46,001 --> 08:20:48,000 POOR, SICK AND HUNGRY PEOPLE. 10632 08:20:48,001 --> 08:20:50,000 YOU THINK THE CASTRO BROTHERS 10633 08:20:50,001 --> 08:20:51,000 MISSED BREAKFAST, LUNCH OR 10634 08:20:51,001 --> 08:20:53,000 DINNER BECAUSE WE HAD AN EMBARGO 10635 08:20:53,001 --> 08:20:54,000 ON FOOD SHIPMENTS TO CUBA? 10636 08:20:54,001 --> 08:20:56,000 HARDLY. 10637 08:20:56,001 --> 08:20:58,000 SO TEN YEARS AGO I GOT THE LAW CHANGED. 10638 08:20:58,001 --> 08:20:59,000 IN FACT, IT WAS THE 10639 08:20:59,001 --> 08:21:02,000 DORGAN-ASHCROFT AMENDMENT. 10640 08:21:02,001 --> 08:21:04,000 GOT A HROU CHANGED THAT ALLOWED 10641 08:21:04,001 --> 08:21:06,000 US -- GOT A LAW CHANGED THAT 10642 08:21:06,001 --> 08:21:08,000 ALLOWED US TO BEGIN SELLING FOOD 10643 08:21:08,001 --> 08:21:09,000 INTO THE COUNTRY OF CUBA. 10644 08:21:09,001 --> 08:21:10,000 AND THAT IS THE FIRST 10645 08:21:10,001 --> 08:21:12,000 OPPORTUNITY TO BEGIN TO MAKE ANY 10646 08:21:12,001 --> 08:21:14,000 CHANGES AT ALL IN THIS EMBARGO. 10647 08:21:14,001 --> 08:21:15,000 NOW THE QUESTION IS TRAVEL TO 10648 08:21:15,001 --> 08:21:16,000 CUBA BY THE AMERICAN PEOPLE. 10649 08:21:16,001 --> 08:21:17,000 SHOULD WE CONTINUE TO SAY TO THE 10650 08:21:17,001 --> 08:21:19,000 AMERICAN PEOPLE, YOU HAVE NO 10651 08:21:19,001 --> 08:21:21,000 RIGHT TO TRAVEL TO CUBA? 10652 08:21:21,001 --> 08:21:22,000 WE DON'T LIKE THE CUBAN 10653 08:21:22,001 --> 08:21:24,000 GOVERNMENT, SO WHAT WE'RE GOING 10654 08:21:24,001 --> 08:21:25,000 TO DO IS RESTRICT THE RIGHTS OF 10655 08:21:25,001 --> 08:21:26,000 THE AMERICAN PEOPLE. 10656 08:21:26,001 --> 08:21:28,000 WE'VE BEEN DOING THAT FOR 50 10657 08:21:28,001 --> 08:21:31,000 YEARS, AND IT'S TIME, LONG PAST 10658 08:21:31,001 --> 08:21:36,000 THE TIME FOR IT TO CHANGE. 10659 08:21:36,001 --> 08:21:39,000 NOW LET ME JUSTESCRIBE A 10660 08:21:39,001 --> 08:21:40,000 LETTER THAT CAME 10661 08:21:40,001 --> 08:21:43,000 U.S. HOUSE OF REPRESENTATIVES. 10662 08:21:43,001 --> 08:21:44,000 AND, BY THE WAY, THE REASON THAT 10663 08:21:44,001 --> 08:21:46,000 THIS ISSUE HAS NOW COME TO THE 10664 08:21:46,001 --> 08:21:49,000 FOREFRONT IS THE AGRICULTURE 10665 08:21:49,001 --> 08:21:52,000 COMMITTEE OF THE U.S. HOUSE JUST 10666 08:21:52,001 --> 08:21:56,000 PASSED A BILL THAT LIFTS THE 10667 08:21:56,001 --> 08:21:58,000 TRAVEL RESTRICTIONS ON THE 10668 08:21:58,001 --> 08:21:59,000 AMERICAN PEOPLE TO TRAVEL TO CUBA. 10669 08:21:59,001 --> 08:22:01,000 AND IT ALSO MAKES SOME CHANGES 10670 08:22:01,001 --> 08:22:03,000 IN THE CONDITIONS UNDER WHICH 10671 08:22:03,001 --> 08:22:04,000 AGRICULTURAL GOODS CAN BE 10672 08:22:04,001 --> 08:22:06,000 MADE -- CAN BE SOLD TO CUBA, 10673 08:22:06,001 --> 08:22:07,000 WHICH IS VERY IMPORTANT TO DO AS 10674 08:22:07,001 --> 08:22:10,000 WELL BECAUSE EVEN THOUGH TEN 10675 08:22:10,001 --> 08:22:12,000 YEARS AGO I GOT THE PROVISION 10676 08:22:12,001 --> 08:22:14,000 ENACTED INTO LAW THAT ALLOWS THE 10677 08:22:14,001 --> 08:22:18,000 SALE OF FARM PRODUCTS FOR CASH 10678 08:22:18,001 --> 08:22:20,000 INTO CUBA IN 2003 AS A RUN-UP TO 10679 08:22:20,001 --> 08:22:21,000 THE 2004 ELECTION, PRESIDENT 10680 08:22:21,001 --> 08:22:23,000 BUSH TIGHTENED ALL OF THESE 10681 08:22:23,001 --> 08:22:25,000 PROVISIONS AND ACTUALLY CHANGED 10682 08:22:25,001 --> 08:22:28,000 A RULE SO THAT IN ORDER FOR CUBA 10683 08:22:28,001 --> 08:22:30,000 TO PURCHASE GOODS FROM OUR 10684 08:22:30,001 --> 08:22:31,000 COUNTRY -- THAT IS AGRICULTURAL 10685 08:22:31,001 --> 08:22:32,000 COMMODITIES -- THEY HAD TO PAY 10686 08:22:32,001 --> 08:22:34,000 IN CASH BEFORE THE COMMODITIES 10687 08:22:34,001 --> 08:22:36,000 WERE EVEN SHIPPED. 10688 08:22:36,001 --> 08:22:38,000 WELL, THAT NEVER HAPPENS IN A TRANSACTION. 10689 08:22:38,001 --> 08:22:40,000 YOU PAY CASH WHEN YOU GET THE GOODS. 10690 08:22:40,001 --> 08:22:41,000 BUT THE PRESIDENT, PRESIDENT 10691 08:22:41,001 --> 08:22:43,000 BUSH, WAS ATTEMPTING TO RESTRICT 10692 08:22:43,001 --> 08:22:45,000 THE SALES OF AGRICULTURAL 10693 08:22:45,001 --> 08:22:47,000 PRODUCTS TO CUBA. 10694 08:22:47,001 --> 08:22:48,000 SO WE NEED TO FIX THAT AS WELL. THE HOUSE OF REPRESENTATIVES 10695 08:22:48,001 --> 08:22:50,000 AGRICULTURE COMMITTEE NOW PASSED 10696 08:22:50,001 --> 08:22:51,000 A BILL LIFTING THE TRAVEL BAN. 10697 08:22:51,001 --> 08:22:53,000 THAT MEANS THIS ISSUE IS GOING 10698 08:22:53,001 --> 08:22:55,000 TO BE FRONT AND CENTER, AND HERE 10699 08:22:55,001 --> 08:22:57,000 IN THE UNITED STATES SENATE I 10700 08:22:57,001 --> 08:22:58,000 AND SENATOR ENZI HAVE THE 10701 08:22:58,001 --> 08:23:01,000 BILL -- IT'S BIPARTISAN -- THAT 10702 08:23:01,001 --> 08:23:04,000 WOULD LIFT THE TRAVEL BAN TO CUBA. 10703 08:23:04,001 --> 08:23:05,000 AND WE HAVE 40 SENATORS THAT ARE 10704 08:23:05,001 --> 08:23:07,000 COSPONSORS. 10705 08:23:07,001 --> 08:23:09,000 NOW LET ME READ TO YOU A LETTER 10706 08:23:09,001 --> 08:23:12,000 THAT WAS SENT TO THE U.S. HOUSE 10707 08:23:12,001 --> 08:23:15,000 OF REPRESENTATIVES BY 74 CUBAN 10708 08:23:15,001 --> 08:23:20,000 HUMAN RIGHTS LEADERS. 10709 08:23:20,001 --> 08:23:22,000 MAY 30, 2010, JUST A MONTH AND A 10710 08:23:22,001 --> 08:23:23,000 HALF AGO, THEY SAID THE 10711 08:23:23,001 --> 08:23:25,000 SUPPORTIVE PRESENCE OF AMERICAN 10712 08:23:25,001 --> 08:23:27,000 CITIZENS, THEIR DIRECT HELP, AND 10713 08:23:27,001 --> 08:23:29,000 THE MANY OPPORTUNITIES FOR 10714 08:23:29,001 --> 08:23:30,000 EXCHANGE USED EFFECTIVELY AND IN 10715 08:23:30,001 --> 08:23:33,000 THE DESIRED DIRECTION WOULD NOT 10716 08:23:33,001 --> 08:23:35,000 BE AN ABANDONMENT OF CUBAN CIVIL 10717 08:23:35,001 --> 08:23:36,000 SOCIETY BUT RATHER A FORCE TO 10718 08:23:36,001 --> 08:23:38,000 STRENGTHEN IT. 10719 08:23:38,001 --> 08:23:40,000 SIMILARLY, TO FURTHER FACILITATE 10720 08:23:40,001 --> 08:23:42,000 THE SALE OF AGRICULTURE PRODUCTS 10721 08:23:42,001 --> 08:23:43,000 WOULD HELP ALLEVIATE THE FOOD 10722 08:23:43,001 --> 08:23:45,000 SHORTAGES WE NOW SUFFER. 10723 08:23:45,001 --> 08:23:47,000 THE CURRENT CUBAN GOVERNMENT HAS 10724 08:23:47,001 --> 08:23:48,000 ALWAYS VIOLATED THIS RIGHT TO 10725 08:23:48,001 --> 08:23:49,000 TRAVEL, AND IN RECENT YEARS HAS 10726 08:23:49,001 --> 08:23:50,000 JUSTIFIED ACTIONS WITH THE FACT 10727 08:23:50,001 --> 08:23:53,000 THAT THE GOVERNMENT OF THE 10728 08:23:53,001 --> 08:23:55,000 UNITED STATES ALSO RESTRICTS ITS 10729 08:23:55,001 --> 08:23:56,000 CITIZENS FREEDOM TO TRAVEL. 10730 08:23:56,001 --> 08:23:59,000 THE PASSAGE OF THIS BILL WOULD 10731 08:23:59,001 --> 08:24:01,000 REMOVE THIS SPURIOUS JUSTIFICATION. 10732 08:24:01,001 --> 08:24:02,000 THIS IS NOT FROM ME OR FROM THE 10733 08:24:02,001 --> 08:24:07,000 COSPONSORS OF MY BILL. 10734 08:24:07,001 --> 08:24:15,000 THIS IS FROM 7 10735 08:24:15,001 --> 08:24:19,000 RIGHTS LEADERS. 10736 08:24:19,001 --> 08:24:22,000 MADAM PRESIDENT, THE 10737 08:24:22,001 --> 08:24:23,000 LIFTING THE TRAVEL BAN, THE ONE 10738 08:24:23,001 --> 08:24:24,000 THAT WE'VE SLAPPED ON THE 10739 08:24:24,001 --> 08:24:28,000 AMERICAN PEOPLE IN ORDER TO 10740 08:24:28,001 --> 08:24:29,000 PUNISH SOMEBODY ELSE -- WE'VE 10741 08:24:29,001 --> 08:24:31,000 PUNISHED THE AMERICAN CITIZENS 10742 08:24:31,001 --> 08:24:32,000 BECAUSE WE'RE UPSET WITH 10743 08:24:32,001 --> 08:24:33,000 SOMEBODY ELSE. 10744 08:24:33,001 --> 08:24:37,000 HERE ARE PEOPLE WHO SUPPORT 10745 08:24:37,001 --> 08:24:40,000 LIFTING THE TRAVEL BAN: A 10746 08:24:40,001 --> 08:24:46,000 POLITICAL PRISONER, MARCELO 10747 08:24:46,001 --> 08:24:49,000 RODRIGUEZ FROM CUB 10748 08:24:49,001 --> 08:24:54,000 GUILLERMO FARINAS, A HUNGER 10749 08:24:54,001 --> 08:25:01,000 STRIKER FROM CUBA, YOANI 10750 08:25:01,001 --> 08:25:04,000 SANCHEZ, OSCAR CHEPE, MIRIAM 10751 08:25:04,001 --> 08:25:05,000 LEVA FOUNDER OF THE LADIES IN WHITE. 10752 08:25:05,001 --> 08:25:06,000 ONE OF THE FOUNDERS OF THE 10753 08:25:06,001 --> 08:25:07,000 LADIES IN WHITE 10754 08:25:07,001 --> 08:25:11,000 THIS TRAVEL BAN. 10755 08:25:11,001 --> 08:25:13,000 THEY ARE NOT SOFT ON CASTRO OR 10756 08:25:13,001 --> 08:25:15,000 SOFT ON A COMMUNIST GOVERNMENT. 10757 08:25:15,001 --> 08:25:20,000 THEY JUST BELIEVE THIS TRAVEL 10758 08:25:20,001 --> 08:25:24,000 BAN SHOULD BE LIFTED BECAUSE IT 10759 08:25:24,001 --> 08:25:26,000 WOULD BE BENEFICIAL TO THEIR 10760 08:25:26,001 --> 08:25:32,000 INTEREST AS LEADERS OF HUMAN 10761 08:25:32,001 --> 08:25:36,000 RIGHTS IN CUBA. 10762 08:25:36,001 --> 08:25:38,000 THE SACRIFICES THAT THOSE WHO I 10763 08:25:38,001 --> 08:25:41,000 HAVE SHOWN HERE IN PHOTOGRAPHS, 10764 08:25:41,001 --> 08:25:46,000 THE SACRIFICES THEY HAVE MADE IN 10765 08:25:46,001 --> 08:25:47,000 CUBA SITTING IN DARK PRISON 10766 08:25:47,001 --> 08:25:50,000 CELLS, HUNGER STRIKES AND MORE, 10767 08:25:50,001 --> 08:25:51,000 I THINK GIVE THEM GREAT 10768 08:25:51,001 --> 08:25:53,000 CREDIBILITY WHEN THEY SPEAK OUT 10769 08:25:53,001 --> 08:25:56,000 ON WHAT IS THE BEST WAY TO 10770 08:25:56,001 --> 08:25:58,000 PROMOTE DEMOCRACY IN CUBA. 10771 08:25:58,001 --> 08:25:59,000 I INDICATED THAT I GOT A LAW 10772 08:25:59,001 --> 08:26:02,000 PASSED THAT ALLOWED US TO SELL 10773 08:26:02,001 --> 08:26:04,000 SOME FOOD INTO CUBA FOR CASH. 10774 08:26:04,001 --> 08:26:07,000 SINCE THAT TIME, U.S. FARMERS 10775 08:26:07,001 --> 08:26:11,000 HAVE SOLD $3.2 BILLION WORTH OF 10776 08:26:11,001 --> 08:26:14,000 FOOD TO CUBA. 10777 08:26:14,001 --> 08:26:16,000 I MENTIONED THAT IN 2003, THE 10778 08:26:16,001 --> 08:26:17,000 BUSH ADMINISTRATION DECIDED TO 10779 08:26:17,001 --> 08:26:19,000 DRAMATICALLY CHANGE THAT TO TRY 10780 08:26:19,001 --> 08:26:20,000 TO RESTRICT THE SALE OF 10781 08:26:20,001 --> 08:26:23,000 AGRICULTURAL PRODUCTS TO CUBA, 10782 08:26:23,001 --> 08:26:25,000 AND THEY SUCCEEDED IN SOME RESPECTS. 10783 08:26:25,001 --> 08:26:26,000 WE NEED TO CHANGE THAT AS WELL. 10784 08:26:26,001 --> 08:26:30,000 IT MAKES NO SEN 10785 08:26:30,001 --> 08:26:32,000 THEY DID IN 2003. 10786 08:26:32,001 --> 08:26:36,000 BUT LET ME TRY 10787 08:26:36,001 --> 08:26:38,000 WAS DONE IN 2003 SO THAT 10788 08:26:38,001 --> 08:26:39,000 EVERYBODY UNDERSTANDS WHAT 10789 08:26:39,001 --> 08:26:40,000 HAPPENED. 10790 08:26:40,001 --> 08:26:44,000 THE PRESIDENT, TRYING TO GET 10791 08:26:44,001 --> 08:26:46,000 TOUGH IN 2003, ELIMINATED THE 10792 08:26:46,001 --> 08:26:49,000 PEOPLE, THE PEOPLE-TO-PEOPLE 10793 08:26:49,001 --> 08:26:51,000 VISITS PROGRAM WITH CUBA, 10794 08:26:51,001 --> 08:26:53,000 ELIMINATED SECONDARY EDUCATION 10795 08:26:53,001 --> 08:26:54,000 TRAVEL WITH CUBA. 10796 08:26:54,001 --> 08:26:56,000 RESTRICTED FAMILY TRAVEL TO CUBA 10797 08:26:56,001 --> 08:26:58,000 BY CUBAN AMERICANS. 10798 08:26:58,001 --> 08:27:01,000 RESTRICTED AMATEUR ATHLETIC TRAVEL. 10799 08:27:01,001 --> 08:27:03,000 PROHIBITED GIFT PARCELS WITH 10800 08:27:03,001 --> 08:27:04,000 CLOTHING, PERSONAL HYGIENE 10801 08:27:04,001 --> 08:27:06,000 ITEMS, SOAP MAKING EQUIPMENT AND 10802 08:27:06,001 --> 08:27:09,000 SO ON. RESTRICTED RELIGIOUS TRAVEL. 10803 08:27:09,001 --> 08:27:10,000 AND THEN ALSO IMPOSED THE CASH 10804 08:27:10,001 --> 08:27:12,000 BEFORE SHIPMENT RULE IN ORDER TO 10805 08:27:12,001 --> 08:27:15,000 RESTRICT THE SALE OF 10806 08:27:15,001 --> 08:27:20,000 AGRICULTURAL COMMODITIES TO CUBA. 10807 08:27:20,001 --> 08:27:23,000 SO THAT'S WHERE WE'VE BEEN WITH 10808 08:27:23,001 --> 08:27:24,000 RESPECT TO WHAT HAPPENED IN THE 10809 08:27:24,001 --> 08:27:26,000 PREVIOUS ADMINISTRATION. 10810 08:27:26,001 --> 08:27:28,000 PRESIDENT OBAMA HAS TAKEN SOME 10811 08:27:28,001 --> 08:27:29,000 UNILATERAL ACTIONS SINCE TAKING 10812 08:27:29,001 --> 08:27:31,000 OFFICE. 10813 08:27:31,001 --> 08:27:32,000 HE'S REMOVED THE RESTRICTIONS ON 10814 08:27:32,001 --> 08:27:34,000 CUBAN AMERICANS WHO WANT TO 10815 08:27:34,001 --> 08:27:36,000 VISIT CUBA FOR FAMILY VISITS. 10816 08:27:36,001 --> 08:27:37,000 AND HE'S AUTHORIZED U.S. 10817 08:27:37,001 --> 08:27:40,000 TELECOMMUNICATIONS COMPANIES TO 10818 08:27:40,001 --> 08:27:42,000 SELL THEIR SERVICES IN CUBA. 10819 08:27:42,001 --> 08:27:43,000 I THINK HE SHOULD GO FURTHER 10820 08:27:43,001 --> 08:27:46,000 IMMEDIATELY, AND I THINK HE HAS 10821 08:27:46,001 --> 08:27:47,000 THE CAPABILITY TO DO THAT BY 10822 08:27:47,001 --> 08:27:51,000 RESTORING PEOPLE-TO-PEOPLE 10823 08:27:51,001 --> 08:27:54,000 VISITS TO CUBA, RESTORE THE 10824 08:27:54,001 --> 08:27:56,000 DEFINITION OF -- I SHOULD SAY 10825 08:27:56,001 --> 08:27:58,000 PERMANENTLY RESTORE THE ORIGINAL 10826 08:27:58,001 --> 08:27:59,000 DEFINITION OF PAYMENT OF CASH IN 10827 08:27:59,001 --> 08:28:02,000 ADVANCE SO THAT FARMERS CAN 10828 08:28:02,001 --> 08:28:04,000 CONTINUE TO SELL PRODUCTS, 10829 08:28:04,001 --> 08:28:06,000 AGRICULTURAL PRODUCTS TO CUBA. 10830 08:28:06,001 --> 08:28:08,000 AND ESPECIALLY WE NEED HERE IN 10831 08:28:08,001 --> 08:28:10,000 THE CONGRESS TO PASS S. 428, 10832 08:28:10,001 --> 08:28:12,000 WHICH IS THE FREEDOM TO TRAVEL 10833 08:28:12,001 --> 08:28:16,000 TO CUBA ACT. 10834 08:28:16,001 --> 08:28:18,000 NOW, LET ME DESCRIBE THAT THE 10835 08:28:18,001 --> 08:28:22,000 AMERICAN PEOPLE HAVE THE RIG 10836 08:28:22,001 --> 08:28:23,000 TO TRAVEL ALMOST ANYWHERE THEY 10837 08:28:23,001 --> 08:28:25,000 WISH. 10838 08:28:25,001 --> 08:28:26,000 THEY CAN TRAVEL TO RUSSIA IN THE 10839 08:28:26,001 --> 08:28:28,000 MIDDLE OF THE COLD WAR. 10840 08:28:28,001 --> 08:28:31,000 IN FACT, WE SENT OUR 10841 08:28:31,001 --> 08:28:33,000 PHILHARMONIC ORCHESTRA IN 1959, 10842 08:28:33,001 --> 08:28:36,000 RIGHT AT THE HEIGHT OF THE COLD 10843 08:28:36,001 --> 08:28:37,000 WAR, TO PLAY MUSIC IN RUSSIA. 10844 08:28:37,001 --> 08:28:39,000 THEY WEREN'T RESTRICTED. 10845 08:28:39,001 --> 08:28:44,000 THERE WAS NO TRAVEL RESTRICTION 10846 08:28:44,001 --> 08:28:48,000 WITH RESPECT TO 10847 08:28:48,001 --> 08:28:52,000 THE NEW YORK PHILHARMONIC IN 10848 08:28:52,001 --> 08:28:54,000 2008 WENT TO NORTH KOREA. 10849 08:28:54,001 --> 08:28:56,000 IF YOU WANT TO GET A LUMP IN 10850 08:28:56,001 --> 08:29:00,000 YOUR THROAT AND FEEL REALLY 10851 08:29:00,001 --> 08:29:02,000 PROUD, GO GET THIS, THE 10852 08:29:02,001 --> 08:29:03,000 RECORDING, THE D.V.D. 10853 08:29:03,001 --> 08:29:06,000 WATCHING THE NEW YORK 10854 08:29:06,001 --> 08:29:08,000 PHILHARMONIC PLAY A CONCERT IN 10855 08:29:08,001 --> 08:29:09,000 NORTH KOREA, IT 10856 08:29:09,001 --> 08:29:10,000 EXTRAORDINARY. 10857 08:29:10,001 --> 08:29:12,000 BUT THEY WERE NOT PROHIBITED 10858 08:29:12,001 --> 08:29:14,000 FROM TRAVELING TO NORTH KOREA 10859 08:29:14,001 --> 08:29:15,000 BECAUSE YOU CAN TRAVEL TO NORTH 10860 08:29:15,001 --> 08:29:22,000 KOREA. 10861 08:29:22,001 --> 08:29:24,000 YOU CAN TRAVEL TO IRAN. 10862 08:29:24,001 --> 08:29:26,000 THIS IS FROM THE OFFICE OF 10863 08:29:26,001 --> 08:29:27,000 FOREIGN ASSETS CONTROL, WHICH IS 10864 08:29:27,001 --> 08:29:29,000 THE OFFICE DOWN IN THE BOWELS OF 10865 08:29:29,001 --> 08:29:31,000 THE TREASURY DEPARTMENT THAT 10866 08:29:31,001 --> 08:29:32,000 DETERMINES WHERE AMERICANS -- OR 10867 08:29:32,001 --> 08:29:34,000 HOW TY'RE GOING TO ENFORCE THE 10868 08:29:34,001 --> 08:29:36,000 TRAVEL BAN TO CUBA. 10869 08:29:36,001 --> 08:29:37,000 THEY SAY ALL TRANSACTIONS 10870 08:29:37,001 --> 08:29:40,000 ORDINARILY AND INCIDENTS OF 10871 08:29:40,001 --> 08:29:41,000 TRAVEL TO AND FROM IRAN ARE PERMITTE 10872 08:29:41,001 --> 08:29:43,000 LET'S REVIEW. 10873 08:29:43,001 --> 08:29:44,000 YOU CAN TRAVEL TO RUSSIA IN THE 10874 08:29:44,001 --> 08:29:45,000 MIDDLE OF THE COLD WAR. 10875 08:29:45,001 --> 08:29:48,000 YOU CAN TRAVEL TO IRAN RIGHT 10876 08:29:48,001 --> 08:29:50,000 NOW. 10877 08:29:50,001 --> 08:29:53,000 YOU CAN TRAVEL TO NORTH KOREA RIGHT NOW. 10878 08:29:53,001 --> 08:29:55,000 NORTH KOREA'S A COMMUNIST COUNTRY. 10879 08:29:55,001 --> 08:29:57,000 YOU CAN TRAVEL TO CHINA. 10880 08:29:57,001 --> 08:29:59,000 CHINA'S A COMMUNITY COUNTRY. 10881 08:29:59,001 --> 08:30:02,000 YOU CAN TRAVEL TO VIETNAM. 10882 08:30:02,001 --> 08:30:03,000 VIETNAM'S A COMMUNIST COUNTRY. 10883 08:30:03,001 --> 08:30:04,000 I'M CO-CHAIR ON THE 10884 08:30:04,001 --> 08:30:05,000 CONGRESSIONAL COMMISSION ON 10885 08:30:05,001 --> 08:30:06,000 CHINA. 10886 08:30:06,001 --> 08:30:08,000 WE HAVE THE WORLD'S MOST 10887 08:30:08,001 --> 08:30:10,000 COMPLETE DATABASE OF POLITICAL 10888 08:30:10,001 --> 08:30:12,000 PRISONERS HELD IN CHINA. 10889 08:30:12,001 --> 08:30:14,000 THERE ARE VERY SERIOUS PROBLEMS 10890 08:30:14,001 --> 08:30:15,000 IN CHINA WITH RESPECT TO THE 10891 08:30:15,001 --> 08:30:17,000 IMPRISONMENT OF INNOCENT PEOPLE 10892 08:30:17,001 --> 08:30:21,000 WHO ARE NOW SITTING IN THE DARK 10893 08:30:21,001 --> 08:30:24,000 CORNERS OF CELLS IN THE FARTHEST 10894 08:30:24,001 --> 08:30:25,000 REACHES OF CHINA, 10895 08:30:25,001 --> 08:30:27,000 PRISONERS. 10896 08:30:27,001 --> 08:30:28,000 AND WE DON'T DECIDE BECAUSE OF 10897 08:30:28,001 --> 08:30:30,000 THAT THAT WE'RE NOT GOING TO 10898 08:30:30,001 --> 08:30:33,000 ALLOW TRAVEL OR TRADE WITH 10899 08:30:33,001 --> 08:30:34,000 CUBA -- EXCUSE 10900 08:30:34,001 --> 08:30:36,000 VIETNAM. 10901 08:30:36,001 --> 08:30:37,000 WE HAVE DECIDED ENGAGEMENT 10902 08:30:37,001 --> 08:30:39,000 THROUGH TRAVEL AND TRADE IS THE 10903 08:30:39,001 --> 08:30:41,000 MOST PRODUCTIVE WAY TO MOVE 10904 08:30:41,001 --> 08:30:42,000 THOSE COUNTRIES TOWARD GREATER 10905 08:30:42,001 --> 08:30:43,000 HUMAN RIGHTS. 10906 08:30:43,001 --> 08:30:45,000 IT IS ONLY WITH CUBA THAT OUR 10907 08:30:45,001 --> 08:30:47,000 COUNTRY HAS DECIDED THAT THAT'S 10908 08:30:47,001 --> 08:30:49,000 NOT A STRATEGY THAT WORKS AT ALL. 10909 08:30:49,001 --> 08:30:50,000 WHAT REALLY WORKS IS PUNISHING 10910 08:30:50,001 --> 08:30:53,000 THE AMERICAN PEOPLE. 10911 08:30:53,001 --> 08:30:56,000 AND SO WHAT WE HAVE DONE IS WE 10912 08:30:56,001 --> 08:30:58,000 DECIDED WE'RE GOING TO PU 10913 08:30:58,001 --> 08:31:00,000 THE AMERICAN PEOPLE THAT TRAVEL 10914 08:31:00,001 --> 08:31:02,000 TO CUBA BY TRACKING THEM DOWN 10915 08:31:02,001 --> 08:31:03,000 AND DIVERTING 20% OF THE 10916 08:31:03,001 --> 08:31:05,000 RESOURCES IN THE OFFICE OF T 10917 08:31:05,001 --> 08:31:06,000 FOREIGN ASSET CONTROL, THAT'S A 10918 08:31:06,001 --> 08:31:08,000 LITTLE OFFICE IN THE TREASURY 10919 08:31:08,001 --> 08:31:10,000 DEPARTMENT WHO -- THEY'RE 10920 08:31:10,001 --> 08:31:12,000 SUPPOSED TO BE WORKING ON 10921 08:31:12,001 --> 08:31:13,000 TRACKING FINANCING BY 10922 08:31:13,001 --> 08:31:15,000 TERRORISTS. 10923 08:31:15,001 --> 08:31:17,000 INSTEAD ABOUT A QUARTER OF THEIR 10924 08:31:17,001 --> 08:31:20,000 TIME, I'M TOLD, IS USED TO TRY 10925 08:31:20,001 --> 08:31:22,000 TO TRACK AMERICAN TOURISTS WHO 10926 08:31:22,001 --> 08:31:23,000 ARE BEING SUSPECTED OF 10927 08:31:23,001 --> 08:31:25,000 VACATIONING IN CUBA. 10928 08:31:25,001 --> 08:31:26,000 WHEN THEY TRACK THEM DOWN, THEY 10929 08:31:26,001 --> 08:31:29,000 REALLY GET AFTER THEM. 10930 08:31:29,001 --> 08:31:32,000 THEY WANT TO LEVY A BIG FINE AND 10931 08:31:32,001 --> 08:31:34,000 I DESCRIBED PREVIOUSLY, AND I 10932 08:31:34,001 --> 08:31:35,000 WILL AGAIN, BECAUSE MY COLLEAGUE 10933 08:31:35,001 --> 08:31:37,000 WHO PRESENTED USED A LOT OF 10934 08:31:37,001 --> 08:31:38,000 POSTERS TO SHOW WHAT THE 10935 08:31:38,001 --> 08:31:39,000 CIRCUMSTANCES ARE. 10936 08:31:39,001 --> 08:31:42,000 BUT HER 10937 08:31:42,001 --> 08:31:44,000 FOREIGN ASSETS CONTROL SAYS WITH 10938 08:31:44,001 --> 08:31:46,000 RESPECT TO TRAVEL TO CUBA BY AN 10939 08:31:46,001 --> 08:31:48,000 AMERICAN CITIZEN, "UNLESS 10940 08:31:48,001 --> 08:31:51,000 OTHERWISE AUTHORIZED, ANY PERSON 10941 08:31:51,001 --> 08:31:53,000 SUBJECT TO U.S. JURISDICTION 10942 08:31:53,001 --> 08:31:56,000 ENTBAIDGES ANY TRAVEL-RELATED 10943 08:31:56,001 --> 08:31:57,000 TRANSACTION IN CUBA VIOTES THE 10944 08:31:57,001 --> 08:31:59,000 REGULATIONS." WHAT DOES THAT MEAN? 10945 08:31:59,001 --> 08:32:01,000 WHAT ARE THE CONSEQUENCES? 10946 08:32:01,001 --> 08:32:03,000 WELL, IT MEANS THAT WE ARE 10947 08:32:03,001 --> 08:32:05,000 PUNISHING THE AMERICAN PEOPLE 10948 08:32:05,001 --> 08:32:08,000 SAYING WE RESTRICT OUR TRAVEL. 10949 08:32:08,001 --> 08:32:12,000 SO CARLOS LAZIO, A MAN WHO I MET 10950 08:32:12,001 --> 08:32:15,000 AND A MAN WHO WENT TO IRAQ TO 10951 08:32:15,001 --> 08:32:16,000 FIGHT FOR HIS COUNTRY AND WON A 10952 08:32:16,001 --> 08:32:19,000 BRONZE STAR BECAUSE HE WAS 10953 08:32:19,001 --> 08:32:20,000 BRAVE, CAME BACK TO THIS COUNTRY 10954 08:32:20,001 --> 08:32:23,000 AFTER SERVING HIS COUNTRY IN 10955 08:32:23,001 --> 08:32:25,000 UNIFORM, WAS AWARDED WITH GREAT 10956 08:32:25,001 --> 08:32:27,000 FANFARE A BRONZE MEDAL FOR 10957 08:32:27,001 --> 08:32:29,000 BRAVERY AND THEN WAS TOLD WHEN 10958 08:32:29,001 --> 08:32:33,000 HE WAS INFORMED THAT HIS TWO 10959 08:32:33,001 --> 08:32:34,000 SONS WHO WERE LIVING IN CUBA WAS 10960 08:32:34,001 --> 08:32:36,000 SICK WAS TOLD THAT YOU HAVE NO 10961 08:32:36,001 --> 08:32:38,000 RIGHT TO TRAVEL TO CUBA TO SEE 10962 08:32:38,001 --> 08:32:39,000 YOUR SICK SON. UNBELIEVABLE. 10963 08:32:39,001 --> 08:32:41,000 I FORCED A VOTE IN THE UNITED 10964 08:32:41,001 --> 08:32:45,000 STATES SENATE ON THIS QUESTION. 10965 08:32:45,001 --> 08:32:47,000 SERGEANT LAZO BACK FROM IRAQ 10966 08:32:47,001 --> 08:32:48,000 WITH A SICK SON IN CUBA WAS 10967 08:32:48,001 --> 08:32:49,000 TOLD, YOU HAVE NO RIGHT TO 10968 08:32:49,001 --> 08:32:54,000 TRAVEL UNBELIEVABLE. 10969 08:32:54,001 --> 08:32:55,000 AND, YET, THAT WAS THE CASE. 10970 08:32:55,001 --> 08:33:00,000 AND I'VE SHOWN THI 10971 08:33:00,001 --> 08:33:02,000 DESCRIBE HOW UNBELIEVABLY 10972 08:33:02,001 --> 08:33:05,000 FOOLISH THESE POLICIES ARE. 10973 08:33:05,001 --> 08:33:07,000 THIS IS JOAN SCOTT. 10974 08:33:07,001 --> 08:33:08,000 I KNOW JOAN SCOTT AS WELL. 10975 08:33:08,001 --> 08:33:11,000 MET HER. 10976 08:33:11,001 --> 08:33:13,000 SHE WENT TO HAVANA TO DISTRIBUTE 10977 08:33:13,001 --> 08:33:14,000 FREE BIBLES ON THE STREETS OF 10978 08:33:14,001 --> 08:33:15,000 HAVANA. 10979 08:33:15,001 --> 08:33:18,000 FOR THAT HER GOVERNMENT TRACKED 10980 08:33:18,001 --> 08:33:21,000 HER DOWN AND TRIED TO FINE 10981 08:33:21,001 --> 08:33:22,000 HER $10,000 FOR GOING TO CUBA TO 10982 08:33:22,001 --> 08:33:24,000 DISTRIBUTE FREE BIBLES, THIS 10983 08:33:24,001 --> 08:33:27,000 GOVERNMENT IS GOING TRACK ITS 10984 08:33:27,001 --> 08:33:30,000 CITIZENS DOWNO TRY TO FINE 10985 08:33:30,001 --> 08:33:34,000 THEM $10,000? 10986 08:33:34,001 --> 08:33:36,000 AND I'VE MET JOAN SLOTE AS WELL 10987 08:33:36,001 --> 08:33:39,000 RIDING A BICYCLE IN CUBA. 10988 08:33:39,001 --> 08:33:40,000 SHE TOOK A BICYCLE TRIP TO CUBA. 10989 08:33:40,001 --> 08:33:42,000 AND THIS GOVERNMENT OF OURS 10990 08:33:42,001 --> 08:33:44,000 TRACKED HER DOWN AND TRI TO 10991 08:33:44,001 --> 08:33:46,000 FINE HER $10,000. 10992 08:33:46,001 --> 08:33:49,000 AND, BY THE WAY, THIS WOMAN, WHO 10993 08:33:49,001 --> 08:33:51,000 I THINK MADE $1,100 A MONTH IN 10994 08:33:51,001 --> 08:33:53,000 SOCIAL SECURITY, HER GOVERNMENT 10995 08:33:53,001 --> 08:33:54,000 DECIDED TO TRY TO ATTACH HER 10996 08:33:54,001 --> 08:33:56,000 SOCIAL SECURITY PAYMENTS. 10997 08:33:56,001 --> 08:33:57,000 WHAT WAS HER TRANSGRESSION 10998 08:33:57,001 --> 08:34:00,000 WHAT WAS HER CRIME? 10999 08:34:00,001 --> 08:34:04,000 SHE TOOK A BICYCLE TRIP TO CUBA 11000 08:34:04,001 --> 08:34:07,000 AS AN AMERICAN CITIZEN. 11001 08:34:07,001 --> 08:34:09,000 NOW, MR. PRESIDENT, I DON'T 11002 08:34:09,001 --> 08:34:12,000 VERY MUCH MORE ABOUT THI 11003 08:34:12,001 --> 08:34:19,000 THIS IS THE MOST UNBELIEVABLE 11004 08:34:19,001 --> 08:34:22,000 WITH RESPECT TO CUBA. 11005 08:34:22,001 --> 08:34:24,000 I'VE BEEN TO CHINA. 11006 08:34:24,001 --> 08:34:26,000 WE DECIDED THAT ENGAGEMENT 11007 08:34:26,001 --> 08:34:27,000 THROUGH TRADE AND TRAVEL IS CONSTRUCTIVE. 11008 08:34:27,001 --> 08:34:30,000 IT WORKS. 11009 08:34:30,001 --> 08:34:31,000 IT IS WHY, I ASSUME, THAT THE 11010 08:34:31,001 --> 08:34:36,000 LEGISLATION THAT SENATOR ENZI 11011 08:34:36,001 --> 08:34:38,000 AND I HAVE OFFERED IS 11012 08:34:38,001 --> 08:34:39,000 COSPONSORED BY SENATOR LUGAR, 11013 08:34:39,001 --> 08:34:41,000 THE RANKING MEMBER OF THE SENATE 11014 08:34:41,001 --> 08:34:43,000 FOREIGN RELATIONS COMMITTEE, 11015 08:34:43,001 --> 08:34:46,000 SENATOR DODD, THE CHAIRMAN OF 11016 08:34:46,001 --> 08:34:49,000 THE BANKING COMMITTEE, THEY ARE 11017 08:34:49,001 --> 08:34:51,000 PART OF THE 40 SENATORS WHO HAVE COSPONSORED LEGISLATION SAYING 11018 08:34:51,001 --> 08:34:52,000 TO OUR GOVERNMENT, WOULD YOU 11019 08:34:52,001 --> 08:34:54,000 STOP PUNISHING THE AMERICAN 11020 08:34:54,001 --> 08:34:57,000 SOMEBODY ELSE? 11021 08:34:57,001 --> 08:34:58,000 AND WOULD YOU STOP BEING SO 11022 08:34:58,001 --> 08:34:59,000 UNBELIEVABLY INCONSISTENT. 11023 08:34:59,001 --> 08:35:01,000 DON'T TELL US THAT TRADE AND 11024 08:35:01,001 --> 08:35:02,000 TRAVEL IS A CONSTRUCTIVE WAY TO 11025 08:35:02,001 --> 08:35:04,000 DEAL WITH COMMUNIST COUNTRIES 11026 08:35:04,001 --> 08:35:06,000 AND THEN TELL US THAT DEALING 11027 08:35:06,001 --> 08:35:08,000 WITH CUBA 90 MILES OFF OUR SHORE 11028 08:35:08,001 --> 08:35:10,000 REQUIRES US TO PUNISH THE 11029 08:35:10,001 --> 08:35:13,000 AMERICAN PEOPLE BY RESTRICTING THEIR RIGHT TO TRAVEL. 11030 08:35:13,001 --> 08:35:15,000 I SAY, AGAIN, BY WHAT RIGHT DOES 11031 08:35:15,001 --> 08:35:16,000 THIS GOVERNMENT HAVE TO TELL AN 11032 08:35:16,001 --> 08:35:17,000 AMERICAN CITIZEN WHERE IT CAN'T 11033 08:35:17,001 --> 08:35:20,000 TRAVEL? 11034 08:35:20,001 --> 08:35:23,000 IT CAN GO TO NORTH KOREA, IRAN, 11035 08:35:23,001 --> 08:35:24,000 CHINA, VIETNAM, BUT NOT TRAVEL 11036 08:35:24,001 --> 08:35:25,000 TO CUBA? 11037 08:35:25,001 --> 08:35:27,000 THAT'S OBSCENE. 11038 08:35:27,001 --> 08:35:29,000 IT MAKES NO SENSE TO ME. 11039 08:35:29,001 --> 08:35:31,000 AND I -- YOU KNOW, IT'S -- ASIDE 11040 08:35:31,001 --> 08:35:33,000 FROM WE OUGHT -- WE OUGHT TO 11041 08:35:33,001 --> 08:35:36,000 STOP DOING STUPID THINGS, ASIDE 11042 08:35:36,001 --> 08:35:40,000 FROM JUST THAT NOTION, WE SURELY 11043 08:35:40,001 --> 08:35:41,000 OUGHT TO DECIDE THAT IT IS NOT 11044 08:35:41,001 --> 08:35:43,000 IN THE INTEREST OF THIS COUNTRY 11045 08:35:43,001 --> 08:35:44,000 TO HAVE ITS GOVERENT TELLING 11046 08:35:44,001 --> 08:35:45,000 PEOPLE HOW, WHEN, AND WHERE THEY 11047 08:35:45,001 --> 08:35:47,000 CAN TRAVEL. 11048 08:35:47,001 --> 08:35:49,000 NOW, I WANT TO FINISH BY JUST 11049 08:35:49,001 --> 08:35:54,000 SAYING THIS AGAIN. 11050 08:35:54,001 --> 08:35:55,000 I DON'T DENY THAT THERE IS 11051 08:35:55,001 --> 08:35:56,000 SUBSTANTIAL HUMAN RIGHTS ASE 11052 08:35:56,001 --> 08:35:57,000 IN CUBA. 11053 08:35:57,001 --> 08:35:59,000 I'VE BEEN THERE. 11054 08:35:59,001 --> 08:36:01,000 I TALKED TO THE DISSIDENTS. 11055 08:36:01,001 --> 08:36:02,000 I TALKED TO THE CUBAN PEOPLE WHO 11056 08:36:02,001 --> 08:36:05,000 HAVE COME TO THIS COUNTRY WHO 11057 08:36:05,001 --> 08:36:07,000 KNOW OF, WHO HAVE SEEN, WHO HAVE 11058 08:36:07,001 --> 08:36:10,000 WATCHED THE UNBELIEVABLE LACK OF 11059 08:36:10,001 --> 08:36:12,000 HUMAN RIGHTS THAT EXISTS IN THAT COUNTRY. 11060 08:36:12,001 --> 08:36:13,000 SO THAT'S -- THAT'S NOT THE 11061 08:36:13,001 --> 08:36:15,000 POINT. 11062 08:36:15,001 --> 08:36:16,000 THE POINT ISN'T TO DIDN'T THE 11063 08:36:16,001 --> 08:36:18,000 CHARTS THAT PEOPLE SHOW ON THE 11064 08:36:18,001 --> 08:36:19,000 ABUSE. 11065 08:36:19,001 --> 08:36:21,000 I COULD BRING TO THE FLOOR OF 11066 08:36:21,001 --> 08:36:22,000 THE SENATE AS CHAIRMAN OF THE 11067 08:36:22,001 --> 08:36:24,000 COMMISSION THAT DEALS WITH 11068 08:36:24,001 --> 08:36:26,000 CHINA, I CAN CAN BRING TO THE 11069 08:36:26,001 --> 08:36:28,000 FLOOR DOZENS OF PHOTOGRAPHS OF 11070 08:36:28,001 --> 08:36:30,000 CHINESE PRISONERS HELD IN THE 11071 08:36:30,001 --> 08:36:32,000 DARKEST CELLS IN THE FARTHEST 11072 08:36:32,001 --> 08:36:34,000 REACHES OF CHINA WHO HAVE DONE 11073 08:36:34,001 --> 08:36:36,000 NOTHING BUT ARE SUFFERING. 11074 08:36:36,001 --> 08:36:37,000 BUT WE HAVE NOT DECIDED AS A 11075 08:36:37,001 --> 08:36:38,000 COUNTRY THAT WE WILL RESTRICT 11076 08:36:38,001 --> 08:36:40,000 THE AMERICAN PEOPLE'S RIGHTS TO 11077 08:36:40,001 --> 08:36:41,000 GO TO CHINA BECAUSE THAT EXISTS 11078 08:36:41,001 --> 08:36:43,000 IN CHINA. 11079 08:36:43,001 --> 08:36:45,000 WE'VE SAID QUITE THE OPPOSITE. 11080 08:36:45,001 --> 08:36:47,000 WE BELIEVE THE BEST WAY TO 11081 08:36:47,001 --> 08:36:49,000 PROMOTE A MARCH TOWARDS GREATER 11082 08:36:49,001 --> 08:36:51,000 HUMAN RIGHTS IN CHINA, VIETNAM 11083 08:36:51,001 --> 08:36:52,000 AND ELSEWHERE IS THROUGH TRADE AND TRAVEL. 11084 08:36:52,001 --> 08:36:55,000 THAT'S THE CONSTRUCTION THAT 11085 08:36:55,001 --> 08:36:57,000 THIS COUNTRY HAS TAKEN FOR A 11086 08:36:57,001 --> 08:36:58,000 LONG, LONG WHILE EXCEPT WITH 11087 08:36:58,001 --> 08:36:59,000 CUBA. 11088 08:36:59,001 --> 08:37:03,000 AND IN THAT CIRCUMSTANCE WE SAY, 11089 08:37:03,001 --> 08:37:05,000 NO, WE MUST -- WE MUST, 11090 08:37:05,001 --> 08:37:11,000 PREVENT AMERICANS FROM TRAVELING TO CUBA. 11091 08:37:11,001 --> 08:37:15,000 AND I SAY 11092 08:37:15,001 --> 08:37:19,000 CUBAN HUMAN RIGHTS LEADERS HAVE 11093 08:37:19,001 --> 08:37:22,000 SIGNED A LETTER SENT TO US FROM 11094 08:37:22,001 --> 08:37:24,000 HAVANA, CUBA, 74 OF THEM AND 11095 08:37:24,001 --> 08:37:26,000 SAID, LIFT THIS TRAVEL BAN. 11096 08:37:26,001 --> 08:37:29,000 THIS TRAVEL BAN MAKES NO SENSE. 11097 08:37:29,001 --> 08:37:30,000 YOU WANT TO HELP CUBA? 11098 08:37:30,001 --> 08:37:32,000 THEN -- YOU WANT TO HELP THE 11099 08:37:32,001 --> 08:37:33,000 PEOPLE OF CUBA, LIFT THIS TRAVEL 11100 08:37:33,001 --> 08:37:37,000 BAN. 11101 08:37:37,001 --> 08:37:42,000 AND I ALSO WOULD SAY, AGAIN, IF 11102 08:37:42,001 --> 08:37:45,000 I CANIND THE CHART THAT I 11103 08:37:45,001 --> 08:37:49,000 THE -- THE VERY BRAVE CITIZENS 11104 08:37:49,001 --> 08:37:53,000 IN CUBA WHO HAVE SPOKEN OUT AND 11105 08:37:53,001 --> 08:38:01,000 WHO ARE WIDELY RECOGNIZED WHO 11106 08:38:01,001 --> 08:38:06,000 HAVE SUFFERED, MAR CELLO 11107 08:38:06,001 --> 08:38:08,000 RODRIGUEZ, SANCHEZ, ALL OF THEM 11108 08:38:08,001 --> 08:38:09,000 HAVE SUFFERED UNDER THE CASTRO 11109 08:38:09,001 --> 08:38:10,000 REGIME IN CUBA. 11110 08:38:10,001 --> 08:38:12,000 ALL OF THEM BELIEVE THIS TRAVEL 11111 08:38:12,001 --> 08:38:13,000 BAN OUGHT TOE LIFTED. 11112 08:38:13,001 --> 08:38:16,000 I WOULD HOPE THAT THIS SENATE 11113 08:38:16,001 --> 08:38:18,000 WOULD PAY SOME ATTENTION TO THAT 11114 08:38:18,001 --> 08:38:20,000 AND FINALLY SEE IF W CAN'T DO 11115 08:38:20,001 --> 08:38:22,000 TWO THINGS AT THE SAME TIME. 11116 08:38:22,001 --> 08:38:23,000 NUMBER ONE, STOP PUNISHING THE 11117 08:38:23,001 --> 08:38:26,000 AMERICAN PEOPLE BECAUSE WE 11118 08:38:26,001 --> 08:38:28,000 DISAGREE WITH ANOTHER COUNTRY'S GOVERNMENT. 11119 08:38:28,001 --> 08:38:30,000 NUMBER TWO, DO SMART THINGS THAT 11120 08:38:30,001 --> 08:38:32,000 ALLOW US TO FIND WAYS TO PUSH 11121 08:38:32,001 --> 08:38:34,000 AND MOVE THAT GOVERNMENT TOWARD 11122 08:38:34,001 --> 08:38:36,000 GREATER HUMAN RIGHTS FOR ITS CITIZENS. 11123 08:38:36,001 --> 08:38:37,000 LIFTING THE TRAVEL BAN WILL 11124 08:38:37,001 --> 08:38:39,000 ACCOMPLISH BOTH. 11125 08:38:39,001 --> 08:38:42,000 BECAUSE THERE ARE 40 OF US IN THE UNITED STATES SENATE WHO 11126 08:38:42,001 --> 08:38:43,000 HAVE SPONSORED LEGISLATION AND 11127 08:38:43,001 --> 08:38:45,000 COSPONSORED LEGISLATION TO LIFT 11128 08:38:45,001 --> 08:38:47,000 THAT TRAVEL BAN, I BELIEVE THA 11129 08:38:47,001 --> 08:38:49,000 WHEN WE HAVE THE OPPORTUNITY FOR 11130 08:38:49,001 --> 08:38:52,000 THAT VOTE HERE IN T SENATE, I 11131 08:38:52,001 --> 08:38:55,000 BELIEVE THAT WE WILL PREVAIL AT LAST. 11132 08:38:55,001 --> 08:38:57,000 AT LAST, AT LONG, LONG LAST WE 11133 08:38:57,001 --> 08:38:59,000 WILL PREVAIL AND IT WILL BE 11134 08:38:59,001 --> 08:39:01,000 CONSTRUCTIVE PUBLIC POLICY FOR 11135 08:39:01,001 --> 08:39:06,000 OUR COUNTRY TO HAVE DONE SO. 11136 08:39:06,001 --> 08:39:07,000 IT WILL HAVE LIFTED THE YOLK OF OPPRESSION. 11137 08:39:07,001 --> 08:39:08,000 I'M TALKING ABOUT OUR 11138 08:39:08,001 --> 08:39:11,000 GOVERNMENT. 11139 08:39:11,001 --> 08:39:13,000 IT WILL LIFT THE YOLK OF 11140 08:39:13,001 --> 08:39:14,000 OPPRESSION FOR SOME 50 YEARS BY 11141 08:39:14,001 --> 08:39:16,000 TELLING ITS CITIZENS WHERE IT 11142 08:39:16,001 --> 08:39:17,000 CAN AND CANNOT TRAVEL. 11143 08:39:17,001 --> 08:39:18,000 I DON'T WANT TO HEAR ANYMORE 11144 08:39:18,001 --> 08:39:20,000 ABOUT A GOVERNMENT THAT 11145 08:39:20,001 --> 08:39:22,000 DOWN A GUY FROM STATE OF 11146 08:39:22,001 --> 08:39:24,000 WASHINGTON WHOSE FATHER WAS A 11147 08:39:24,001 --> 08:39:26,000 MINISTER IN A SMALL CHURCH IN 11148 08:39:26,001 --> 08:39:27,000 CUBA AND THEN IMMIGRATED TO THIS 11149 08:39:27,001 --> 08:39:29,000 COUNTRY AND HIS FATHER DIED AND 11150 08:39:29,001 --> 08:39:31,000 HIS FATHER'S LAST WISH WAS THAT 11151 08:39:31,001 --> 08:39:34,000 HIS ASHES WOULD BE STREWN ON THE 11152 08:39:34,001 --> 08:39:36,000 CHURCH PROPERTY IN CUBA WHERE HE 11153 08:39:36,001 --> 08:39:39,000 WAS A MINISTER. 11154 08:39:39,001 --> 08:39:41,000 AND SO HIS SON CARRIED OUT HIS 11155 08:39:41,001 --> 08:39:43,000 FATHER'S WISH, WENT TO CUBA AND 11156 08:39:43,001 --> 08:39:46,000 TOOK HIS FATHER'S ASHES TO THE 11157 08:39:46,001 --> 08:39:48,000 CHURCH WHERE HE ONCE SERVED AND 11158 08:39:48,001 --> 08:39:51,000 DEPOSITED THEM ON THE LAWN BY 11159 08:39:51,001 --> 08:39:53,000 CHURCH. 11160 08:39:53,001 --> 08:39:56,000 AND FOR THAT HIS GOVERNMENT 11161 08:39:56,001 --> 08:39:57,000 TRACKED HIM DOWN AND HAD A 11162 08:39:57,001 --> 08:39:59,000 SUBSTANTIAL FINE FOR THAT YOUNG 11163 08:39:59,001 --> 08:40:01,000 MAN FROM WASHINGTON. 11164 08:40:01,001 --> 08:40:03,000 I'M TIRED OF THOSE STORIES. 11165 08:40:03,001 --> 08:40:05,000 THAT IS ABOUT 11166 08:40:05,001 --> 08:40:08,000 WRONG AND WE NEED TO FIX IT. 11167 08:40:08,001 --> 08:40:10,000 AND I MAKE A POINT OF ORDER THAT 11168 08:40:10,001 --> 08:40:12,000 A QUORUM IS NOT PRESENT. 11169 08:40:12,001 --> 08:40:22,000 THE PRESIDING OFFICER: THE CLERK 11170 08:40:22,001 --> 08:41:55,000 WILL CALL THE ROL 11171 08:41:55,001 --> 08:42:22,000 QUORUQUORUM CALL: 11172 08:42:22,001 --> 08:42:23,000 QUORUM CALL: 11173 08:42:23,001 --> 08:42:24,000 MR. DORGAN: MR. PRESIDENT? 11174 08:42:24,001 --> 08:42:25,000 THE PRESIDING OFFICER: THE 11175 08:42:25,001 --> 08:42:27,000 SENATOR FROM NORTH DAKOTA IS RECOGNIZED. 11176 08:42:27,001 --> 08:42:28,000 MR. DORGAN 11177 08:42:28,001 --> 08:42:29,000 CONSENT THE QUORUM CALL BE 11178 08:42:29,001 --> 08:42:30,000 VACATED. THE PRESIDING OFFICER: WITHOUT 11179 08:42:30,001 --> 08:42:31,000 OBJECTION. 11180 08:42:31,001 --> 08:42:32,000 MR. DORGAN: MR. PRESIDENT, I ASK 11181 08:42:32,001 --> 08:42:34,000 UNANIMOUS CONSENT THATT 11182 08:42:34,001 --> 08:42:35,000 2:30 P.M. TUESDAY, JULY 20, THE 11183 08:42:35,001 --> 08:42:37,000 SENATE RESUME CONSIDERATION OF 11184 08:42:37,001 --> 08:42:39,000 THE HOUSE MESSAGE TO ACCOMPANY 11185 08:42:39,001 --> 08:42:41,000 H.R. 4213, THAT THE MOTION TO 11186 08:42:41,001 --> 08:42:42,000 RECONSIDER BE AGREED TO AND THE 11187 08:42:42,001 --> 08:42:44,000 SENATE THEN PROCEED TO VOTE ON 11188 08:42:44,001 --> 08:42:45,000 THE MOTION TO INVOKE CLOTURE ON 11189 08:42:45,001 --> 08:42:46,000 THE MOTION TO CONCUR IN THE 11190 08:42:46,001 --> 08:42:50,000 HOUSE AMENDMENT TO THE SENATE 11191 08:42:50,001 --> 08:42:51,000 AMENDMENT TO H.R. 4213, WITH 11192 08:42:51,001 --> 08:42:53,000 AMENDMENT 4425. 11193 08:42:53,001 --> 08:42:55,000 THE PRESIDING OFFICER: WITHOUT 11194 08:42:55,001 --> 08:42:56,000 OBJECTION. 11195 08:42:56,001 --> 08:42:58,000 MR. DORGAN: MR. PRESIDENT, I ASK UNANIMOUS CONSENT THAT THE 11196 08:42:58,001 --> 08:43:01,000 SENATE PROCEED TO EXECUTIVE 11197 08:43:01,001 --> 08:43:03,000 SESSION TO CONSIDER CALENDAR 11198 08:43:03,001 --> 08:43:06,000 NUMBERS THREE AND FOUR, TREATY 11199 08:43:06,001 --> 08:43:07,000 DOCUMENTS 111-1 AND 111-3, THAT 11200 08:43:07,001 --> 08:43:09,000 THE TREATIES BE CONSIDERED AS 11201 08:43:09,001 --> 08:43:10,000 HAVING ADVANCED TO THE VARIOUS 11202 08:43:10,001 --> 08:43:11,000 PARLIAMENTARY STAGES UP TO AND 11203 08:43:11,001 --> 08:43:14,000 INCLUDING THE PRESENTATION OF 11204 08:43:14,001 --> 08:43:17,000 THE RESOLUTIONS OF RATIFICATION, 11205 08:43:17,001 --> 08:43:19,000 THAT ANY COMMITTEE RESERVATIONS 11206 08:43:19,001 --> 08:43:20,000 AND DECLARATIONS BE AGREED TO AS 11207 08:43:20,001 --> 08:43:22,000 APPLICABLE, THAT ANY STATEMENTS 11208 08:43:22,001 --> 08:43:24,000 BE PRINTED IN THE RECORD, AND 11209 08:43:24,001 --> 08:43:26,000 FURTHER THAT WHEN THE VOTES ON 11210 08:43:26,001 --> 08:43:27,000 THE RESOLUTIONS OF RATIFICATION 11211 08:43:27,001 --> 08:43:28,000 ARE TAKEN, THE MOTIONS TO 11212 08:43:28,001 --> 08:43:30,000 RECONSIDER BE CONSIDERED MADE 11213 08:43:30,001 --> 08:43:32,000 AND LAID UPON THE TABLE EN BLOC, 11214 08:43:32,001 --> 08:43:33,000 THE PRESIDENT BE IMMEDIATELY 11215 08:43:33,001 --> 08:43:37,000 NOTIFIED OF THE SENATE'S ACTION 11216 08:43:37,001 --> 08:43:38,000 AND THE SENATE THEN RESUME 11217 08:43:38,001 --> 08:43:40,000 LEGISLATIVE SESSION. 11218 08:43:40,001 --> 08:43:41,000 THE PRESIDING OFFICER: WITHOUT 11219 08:43:41,001 --> 08:43:42,000 OBJECTION. 11220 08:43:42,001 --> 08:43:44,000 MR. DORGAN: MR. PRESIDENT, I ASK 11221 08:43:44,001 --> 08:43:48,000 FOR A DIVISION VOTE ON EACH OF 11222 08:43:48,001 --> 08:43:49,000 THE RESOLUTIONS O 11223 08:43:49,001 --> 08:43:53,000 THE PRESIDING OFFICER: THE 11224 08:43:53,001 --> 08:43:57,000 QUESTION IS ON TREATY DOCUMENT 111-1. 11225 08:43:57,001 --> 08:44:00,000 ALL THOSE IN FAVOR STA 11226 08:44:00,001 --> 08:44:02,000 COUNTED. 11227 08:44:02,001 --> 08:44:07,000 ALL THOSE OPPOSED STAND AND BE 11228 08:44:07,001 --> 08:44:08,000 COUNTE 11229 08:44:08,001 --> 08:44:12,000 TWO-THIRDS OF THE SENATORS 11230 08:44:12,001 --> 08:44:16,000 PRESENT HAVING VOTED IN THE 11231 08:44:16,001 --> 08:44:20,000 AFFIRMATIVE, THE RESOLUTION OF 11232 08:44:20,001 --> 08:44:25,000 RATIFICATION OF TREY DOCUMENT 11233 08:44:25,001 --> 08:44:28,000 111-1 IS AGREED TO. 11234 08:44:28,001 --> 08:44:30,000 THE QUESTION IS NOW ON TREATY 11235 08:44:30,001 --> 08:44:33,000 DOCUMENT 111-3. 11236 08:44:33,001 --> 08:44:36,000 ALL THOSE IN FAVOR STAND AND BE 11237 08:44:36,001 --> 08:44:38,000 COUNTED. 11238 08:44:38,001 --> 08:44:41,000 ALL THOSE OPPOSED STAND AND BE 11239 08:44:41,001 --> 08:44:44,000 COUNTED. TWO-THIRDS OF THE SENATORS 11240 08:44:44,001 --> 08:44:47,000 PRESENT HAVING VOTED IN THE 11241 08:44:47,001 --> 08:44:49,000 AFFIRMATIVE, THE RESOLUTION OF 11242 08:44:49,001 --> 08:44:52,000 RATIFICATION IS AGREED TO. 11243 08:44:52,001 --> 08:44:54,000 UNDER THE PREVIOUS ORDER, THE 11244 08:44:54,001 --> 08:44:56,000 MOTIONS TO RECONSIDER ARE 11245 08:44:56,001 --> 08:44:59,000 CONSIDERED MADE AND LAID UPON 11246 08:44:59,001 --> 08:45:00,000 THE TABLE EN BLOC. 11247 08:45:00,001 --> 08:45:01,000 MR. DORGAN: MR. PRESIDENT? THE PRESIDING OFFICER: THE 11248 08:45:01,001 --> 08:45:02,000 SENATOR FROM NORTH DAKOTA. 11249 08:45:02,001 --> 08:45:04,000 MR. DORGAN: MR. PRESIDENT, I 11250 08:45:04,001 --> 08:45:05,000 UNDERSTAND THAT H.R. 5712 HAS 11251 08:45:05,001 --> 08:45:08,000 BEEN RECEIVED FROM THE HOUSE AND 11252 08:45:08,001 --> 08:45:11,000 IS AT THE DESK. 11253 08:45:11,001 --> 08:45:12,000 THE PRESIDING OFFICER: THE CLERK 11254 08:45:12,001 --> 08:45:13,000 WILL READ THE TITLE OF THE BILL 11255 08:45:13,001 --> 08:45:16,000 FOR THE FIRST TIME. 11256 08:45:16,001 --> 08:45:17,000 THE CLERK: H.R. 5712, AN ACT TO 11257 08:45:17,001 --> 08:45:18,000 PROVIDE FOR CERTAIN 11258 08:45:18,001 --> 08:45:21,000 CLARIFICATIONS AND EXTENSIONS 11259 08:45:21,001 --> 08:45:23,000 UNDER MEDICARE, MEDICAID AND THE 11260 08:45:23,001 --> 08:45:25,000 CHILDREN'S HEALTH INSURANCE 11261 08:45:25,001 --> 08:45:26,000 PROGRAM. 11262 08:45:26,001 --> 08:45:27,000 MR. DORGAN: MR. PRESIDENT, I 11263 08:45:27,001 --> 08:45:29,000 WOULD ASK FOR THE SECOND READING 11264 08:45:29,001 --> 08:45:30,000 AND OBJECT TO MY OWN REQUEST. 11265 08:45:30,001 --> 08:45:33,000 THE PRESIDING OFFICER: OBJECTION 11266 08:45:33,001 --> 08:45:35,000 IS HEARD. 11267 08:45:35,001 --> 08:45:37,000 THE BILL WILL BE READ FOR THE 11268 08:45:37,001 --> 08:45:39,000 NEXT TIME IN THE NEXT 11269 08:45:39,001 --> 08:45:40,000 LEGISLATIVE DAY. 11270 08:45:40,001 --> 08:45:42,000 MR. DORGAN: MR. PRESIDENT, I 11271 08:45:42,001 --> 08:45:43,000 MAKE A 11272 08:45:43,001 --> 08:45:44,000 QUORUM IS NOT 11273 08:45:44,001 --> 08:45:47,000 THE PRESIDING OFFICER: THE CLERK 11274 08:45:47,001 --> 08:59:55,000 WILL CALL THE ROLL. 11275 08:59:55,001 --> 09:01:47,000 QUORUM CALL: 11276 09:01:47,001 --> 09:01:48,000 QUORUM CALL: THE PRESIDING OFFICER: THE 11277 09:01:48,001 --> 09:01:49,000 SENATOR FROM ILLINOIS 11278 09:01:49,001 --> 09:01:50,000 RECOGNIZED. 11279 09:01:50,001 --> 09:01:51,000 MR. DURBIN: I ASK CONSENT THE 11280 09:01:51,001 --> 09:01:52,000 QUORUM CALL BE DISPENSED WITH. 11281 09:01:52,001 --> 09:01:53,000 I ASK UNANIMOUS CONSENT THAT 11282 09:01:53,001 --> 09:01:54,000 WHEN THE SENATE COMPLETES ITS 11283 09:01:54,001 --> 09:01:55,000 BUSINESS TODAY, IT ADJOURN UNTIL 11284 09:01:55,001 --> 09:01:56,000 2:00 P.M. ON MONDAY, JULY 19. 11285 09:01:56,001 --> 09:01:57,000 THAT FOLLO 11286 09:01:57,001 --> 09:01:59,000 PLEDGE, THE JOURNAL OF 11287 09:01:59,001 --> 09:02:00,000 PROCEEDINGS BE APPROVED TO DATE, 11288 09:02:00,001 --> 09:02:01,000 THE MORNING HOUR BE DEEMED 11289 09:02:01,001 --> 09:02:02,000 EXPIRED, THE TIME FOR THE TWO 11290 09:02:02,001 --> 09:02:04,000 LEADERS BE RESERVED FOR THEIR 11291 09:02:04,001 --> 09:02:06,000 USE LATER IN THE DAY AND THAT 11292 09:02:06,001 --> 09:02:07,000 FOLLOWING ANY LEADER REMARKS, 11293 09:02:07,001 --> 09:02:09,000 THE SENATE PROCEED TO A PERIOD 11294 09:02:09,001 --> 09:02:11,000 OF MORNING BUSIN 11295 09:02:11,001 --> 09:02:12,000 P.M., WITH SENATORS PERMITTED TO 11296 09:02:12,001 --> 09:02:13,000 SPEAK THEREIN FOR UP TO TEN 11297 09:02:13,001 --> 09:02:14,000 MINUTES EACH. 11298 09:02:14,001 --> 09:02:16,000 THAT FOLLOWING MORNING BUSINESS, 11299 09:02:16,001 --> 09:02:18,000 THE SENATE RESUME CONSIDERATION 11300 09:02:18,001 --> 09:02:20,000 OF H.R. 5297, THE SMALL BUSINESS 11301 09:02:20,001 --> 09:02:21,000 JOBS BILL. THE PRESIDING OFFICER: WITHOUT 11302 09:02:21,001 --> 09:02:22,000 OBJECTION. 11303 09:02:22,001 --> 09:02:23,000 MR. DURBIN: MR. PRESIDENT, THERE 11304 09:02:23,001 --> 09:02:25,000 WILL BE NO ROLL CALL VOTES 11305 09:02:25,001 --> 09:02:26,000 DURING MONDAY'S SESSION OF THE SENATE. 11306 09:02:26,001 --> 09:02:28,000 SENATORS SHOULD EXPECT THE NEXT 11307 09:02:28,001 --> 09:02:30,000 VOTE TO OCCUR AT APPROXIMATELY 11308 09:02:30,001 --> 09:02:33,000 2:30 P.M. ON TUESDAY, JULY 20. 11309 09:02:33,001 --> 09:02:34,000 THAT VOTE WILL BE ON THE MOTION 11310 09:02:34,001 --> 09:02:36,000 TO INVOKE CLOTURE WITH RESPECT 11311 09:02:36,001 --> 09:02:38,000 TO H.R. 4213, WHICH EXTENDS 11312 09:02:38,001 --> 09:02:39,000 UNEMPLOYMENT BENEFITS THROUGH NOVEMBER. 11313 09:02:39,001 --> 09:02:40,000 THAT IF THERE'S NO FURTHER 11314 09:02:40,001 --> 09:02:41,000 BUSINESS TO COME BEFORE THE 11315 09:02:41,001 --> 09:02:45,000 SENATE, I ASK THAT IT ADJOURN 11316 09:02:45,001 --> 09:02:46,000 UNDER THE PREVIOUS 11317 09:02:46,001 --> 09:02:47,000 THE PRESIDING OFFICER: THE 11318 09:02:47,001 --> 09:02:49,000 SENATE STANDS ADJOURNED UNTIL