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House Proceeding on May 12th, 2009 :: 0:02:05 to 0:06:35
Total video length: 20 minutes Stream Tools: Stream Overview | Edit Time

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Brad Sherman

0:01:46 to 0:02:07( Edit History Discussion )

Brad Sherman: mr. sherman: mr. speaker, my speech builds on two themes. the first is the continuing effort of administrations of bo political parties to turn congress into a mere advisory body. one of the more effective ways of doing this is to embrace those statutory sections that

Brad Sherman

0:02:05 to 0:06:35( Edit History Discussion )
Speech By: Brad Sherman

Brad Sherman

0:02:08 to 0:02:29( Edit History Discussion )

Brad Sherman: they like and to ignore those statutory sections that they don't like. the second theme is, it's not illegal if wall street wants it. now, let us illustrate these two themes on the tarp legislation. the legislation that provided

Brad Sherman

0:02:30 to 0:02:50( Edit History Discussion )

Brad Sherman: $700 billion to bailout wall street and provided the secretary of the treeshy with enormous authority and discretion as to how that money would be used. now, i thought $700 billion was enough, more than enough. for many reasons i voted against this bill, but there was least one code section

Brad Sherman

0:02:51 to 0:03:12( Edit History Discussion )

Brad Sherman: in the bill that seemed to make sense. and that was a provision that stated clearly and unequivocally that whatever money came back from whatever investments were made by the secretary of the treasury would go to the general fun would pay down the national debt,

Brad Sherman

0:03:13 to 0:03:35( Edit History Discussion )

Brad Sherman: would go into the same fund that our mon went into on april 15 when we mailed in our tax returns. and that's why section 106-d of the bill that created the act states very simply -- revenues of and proceeds from the sale of troubled assets purchased

Brad Sherman

0:03:36 to 0:03:57( Edit History Discussion )

Brad Sherman: under the act or from the sale, exercise or surrender warrants or senior debt instruments acquired under section 113 -- and here are the key words -- shall be paid into the general fund of the treasury for the reduction of public debt. well, how is this code section relevant, how does it fit into

Brad Sherman

0:03:58 to 0:04:18( Edit History Discussion )

Brad Sherman: the overall statute? well, the statute envisions the idea that the secretary of the treasury would use our $700 billion to purchase certain investment assets defined in the bill as troubled assets, and then at some subsequent point those assets would be

Brad Sherman

0:04:19 to 0:04:40( Edit History Discussion )

Brad Sherman: sold and whatever money we got from that sale or from the redumpings when we traded in -- those assets would go into the general fund. now it is beinwidely accepted in the press and on wall street and in washington that whatever the secretary gets back from

Brad Sherman

0:04:41 to 0:05:01( Edit History Discussion )

Brad Sherman: the banks will instead be part of some revolving fund from which the secretary of the treasury may make additional bailouts in addition to the first $700 billion of expenditures. well, the statute is very clear the contrary. whatever is returned to the treasury goes into the general

Brad Sherman

0:05:02 to 0:05:23( Edit History Discussion )

Brad Sherman: fund. now, one thing to keep in mind is this statute uses the term troubled assets so that the secretary of the treasury might say, well, what we're selling is the preferred stock that secretary paulson originally invested in. these aren't troubled assets,

Brad Sherman

0:05:24 to 0:05:44( Edit History Discussion )

Brad Sherman: they're happy assets, and therefore ction 106-d would not apply. this is a complete misreading of the statute because if you turn to section 39-b of the statute, troubled assets is defined as any financial instrument that the secretary after consultation with the chairman of the board of governors of the federal

Brad Sherman

0:05:45 to 0:06:06( Edit History Discussion )

Brad Sherman: reserve system determines the purchase of which is necessary to promote financial stability but only upon the transmittal of such determination in writing to the appropriate committees of congress. the preferred stock that we are about to sell or that the companies are about to

Brad Sherman

0:06:07 to 0:06:28( Edit History Discussion )

Brad Sherman: this defined troubled asset. it was purchased by the secretary of the treasury after a determination that that was necessary to promote financial stability, and to make it very clear that they were relying on section 39-b which defines troubled assets, the secretary of the treasury sent the ap

Brad Sherman

0:06:29 to 0:06:35( Edit History Discussion )

Brad Sherman: written determination. so when we bought the assets we -- they were defined by the treasury department as being

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