House Proceeding on Jul 31st, 2009 :: 2:05:20 to 2:09:35
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2:05:16 to 2:05:37( Edit History Discussion )

Brad Sherman: are substantive amendments to this. consideration. the speaker pro tempore: the gentleman reserves the balance of his time. mr. garrett: i reserve the balance of my time. the speaker pro tempore: for what purpose does the gentleman from massachusetts rise? mr. frank: i yield to the gentleman from californi mr. sherman, for four minutes. the speaker pro tempore: the gentleman from california is

2:05:20 to 2:09:35( Edit History Discussion )
Speech By: Brad Sherman

2:05:38 to 2:05:58( Edit History Discussion )

Brad Sherman: recognized for four minutes. mr. sherman: i thank the chair. i support the bill. i wish it went a bit further. and i of course oppose mr. garrett's amendment. first, what his amendment does is it weakens the say on pay provisions significantly. that's right. it weakens a provision which itself simply provides for

2:05:59 to 2:06:19( Edit History Discussion )

Brad Sherman: nonbinding rolutions. but the core of the garrett amendment is that it eliminates the provision in the bill which is designed to provide very modest restrictions on some very peculiar and pernicious compensation formulas that have been used on wall street.

2:06:20 to 2:06:43( Edit History Discussion )

Brad Sherman: now, let us look at how narrow this provision is. it applies only to financial institions and then only to those over $1 billion. it does not prohibit million dollar a month salaries. it does not prohibit $10 a month salaries. it -- $10 million a month salaries.

2:06:44 to 2:07:05( Edit History Discussion )

Brad Sherman: it allows a executive to get a kagillion stock options. this bill is not an overall limit on compensation on wall street. what it does is it prohibits those compensation formulas that provide an incentive for taking extreme risks, risks that are bad for our econo,

2:07:06 to 2:07:26( Edit History Discussion )

Brad Sherman: risks that are bad for the company. now, the group of 30 led by paul volker found and reported, there are numerous examples of misaligned incentives of incentives that contribute to instability and cyclicality in

2:07:27 to 2:07:47( Edit History Discussion )

Brad Sherman: financial markets. the crisis has driven home the importance of aligning compensation practices with the incentives and controls in a firm's risk management program. aligning pay with long-term shareholder interest rather than short-term returns that

2:07:48 to 2:08:10( Edit History Discussion )

Brad Sherman: cannot be sustained and which entail greater risk. this is a provision not designed, not intended, to limit the overall level of compensation at financial institutions. not designed to prevent enormous bonuses, but the bonuses must not by themselves

2:08:11 to 2:08:31( Edit History Discussion )

Brad Sherman: be designed to undermine the economy or the company. this is a small step that we can take to make sure we don't have another financial meltdown. let me respond to mr. hensarling and others who came to this floor and sically said, all we have too is make

2:08:32 to 2:08:52( Edit History Discussion )

Brad Sherman: sure there are no further bailouts. well, i opposed the wall street bailout. but i'm not going to join with those who say the only problem we had in september of 2008 was thate voted for the bill. we've got to act to prevent the next financial meltdow

2:08:53 to 2:09:13( Edit History Discussion )

Brad Sherman: and it is not enough to come to this floor and say, well, it's ok to have another september, 2008, as long as we vote against that some future bailout bill twice instead of once. the goal is not to defeat the tarp bill. the goal is to prevent the conditions which caused so many to think it was necessary and

2:09:14 to 2:09:34( Edit History Discussion )

Brad Sherman: for all of us to recognize that we faced a great financial cris. the way to do that is to vote down this amendment and make sure that some very peculiar, very pernicious incentive formulas are not used to cause those on wall street to feel if

2:09:35 to 2:09:36( Edit History Discussion )

Brad Sherman: they can only take the most