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Senate Proceeding on Jan 29th, 2009 :: 1:57:20 to 2:04:55
Total video length: 5 hours 7 minutes Stream Tools: Stream Overview | Edit Time

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Chuck Grassley

1:57:17 to 1:57:37( Edit History Discussion )

Chuck Grassley: it is a long-delayed priority. we passed it twice and president george w. bush vetoed it twice. but its delay ought not concern us at this moment. what ought concern success that we move and move quickly to address this problem and say to america's children, you ran the top of our priorities. yes, in our personal lives and

Chuck Grassley

1:57:20 to 2:04:55( Edit History Discussion )
Speech By: Chuck Grassley

Chuck Grassley

1:57:38 to 1:57:55( Edit History Discussion )

Chuck Grassley: also in our public selves, you rank at the top and we're going to provide health car america's children who are uninsured. that ought to represent the best our country and the best of what we can do in both political party whose serve here in the united mr. president, i yield the

Chuck Grassley

1:58:07 to 1:58:31( Edit History Discussion )

Chuck Grassley: floor. mr. grassley: mr. president? the presiding officer: the senator from iowa is recognized for up to 10 minutes. mr. grassley: for the benefit of my members, i don't think that i will use the 10 minutes, but that's always dangerous for me to say that. three years ago i started

Chuck Grassley

1:58:32 to 1:58:52( Edit History Discussion )

Chuck Grassley: conducting oversight of the commission. that oversight began in response to a wstle-blower that came to my office emplanin complaining that s.e.c. supervisors would impeding an investigation into a major hedge fund. soon afterwards i dime this floor of the senate -- soon afterwards came to this floor of the senate to talk about what i

Chuck Grassley

1:58:53 to 1:59:14( Edit History Discussion )

Chuck Grassley: learned from that oversight. that bill was aimed at closing a loophole in securities law that allows hedge funds to operate under the cloak of secrecy. unfortunately, that bill, s. 1402, was never taken up by the change committee in the las congress. in light of the current instability in our financial

Chuck Grassley

1:59:15 to 1:59:35( Edit History Discussion )

Chuck Grassley: system, i think it's very critical for the senate to deal with this issue and do it in the near future. therefore, i'm pleased that senator levin, who is on the floor here, and i worked together to produce an even better version of the bill than i introduced previously and we're now doing that in the 111th congress.

Chuck Grassley

1:59:36 to 1:59:56( Edit History Discussion )

Chuck Grassley: and i want to thank senator levin because he's on a very important oversight committee as well and does a lot of oversight, as i do, and i appreciate everything he maybe a lot of different areas than i do but to work together with him on this one. this new bill, the hedge fund transparency act, does

Chuck Grassley

1:59:57 to 2:00:19( Edit History Discussion )

Chuck Grassley: everything the previous version did, but it does it more and better. like the previous version, it clarifies current law to remove any doubt that the securities and exchange commission has the authority to require hedge funds to register. simply to register. so the government knows who they

Chuck Grassley

2:00:20 to 2:00:40( Edit History Discussion )

Chuck Grassley: are and what they're doing. it removes the loophole previously used by hedge funds to escape the definition o quot unquote -- "investment company" under the investment company act of 1940. under this legislation, hedge funds that want to avoid the

Chuck Grassley

2:00:41 to 2:01:02( Edit History Discussion )

Chuck Grassley: strain gent requirements of the -- the stringent requirements of the investment company act will only be exempt if, one, they file basic disclosure forms, and two,, cooperate with requests for information from the securities and exchange commission. i want to thank senator levin for not o

Chuck Grassley

2:01:03 to 2:01:24( Edit History Discussion )

Chuck Grassley: legislation but also cricket a key addition to this new version of the bill. in addition to requiring basic disclosure, this version also makes clear that the hedge funds have the same obligations under a money laundering financia institutions.

Chuck Grassley

2:01:25 to 2:01:45( Edit History Discussion )

Chuck Grassley: so they must report suspicious transactions and establish anti-money laundering programs. one major cause of the current cris is a lack of trans transprancey. markets need a free flow to function properly. transparency was our focus of

Chuck Grassley

2:01:46 to 2:02:06( Edit History Discussion )

Chuck Grassley: system of security regulation ace doptd way adopted way bac unfortunately at the time the wizardsn wall street figured out a million clever ways avoid transparency. the result is confusion and

Chuck Grassley

2:02:07 to 2:02:28( Edit History Discussion )

Chuck Grassley: uncertainty fueling the today that we see. this bill is an important step towards renewing commitment to transparency on wall street and establishing credibility of the american populous in our financial sector. unfortunately there was not much of an appetite for this sort of

Chuck Grassley

2:02:29 to 2:02:49( Edit History Discussion )

Chuck Grassley: commonsense legislation when i first introduced it before the financial crisis erupted. hopefully attitudes have changed given all that has happened since the collapse of bear stearns last march. that's all particularly connected with the credit crunch and with the

Chuck Grassley

2:02:50 to 2:03:12( Edit History Discussion )

Chuck Grassley: recession. hedge funds are pooled investment companies that manage billions of dol of wealthy investors and do it in total hedge funds affect regular invest -- affect regular investors. they affect the market as a whole.

Chuck Grassley

2:03:13 to 2:03:36( Edit History Discussion )

Chuck Grassley: my oversight at the s.e.c. convince me that there is needed much more information about activities of hedge funds in order to protect the markets. any group of organizations that can wield hundreds of billions of dollars in market power every day should be transparent and disclose basic information about their operations to the agency

Chuck Grassley

2:03:37 to 2:03:57( Edit History Discussion )

Chuck Grassley: that americans rely watchdogs of our nation's financial markets. as i explained when i first introduced this bill, the securities and exchange commission already attempt oversee the hedge fund industry by regulation. congress needs to act now because of a decision of a federal please court.

Chuck Grassley

2:03:58 to 2:04:20( Edit History Discussion )

Chuck Grassley: in 2006 the d.c. circuit court of appea administrative rule requiring the registration of hedge funds. that decision effectively ended all registration of hedge funds with the securities and exchange commission unless, until we in congress take action. the hedge fund transparey act

Chuck Grassley

2:04:21 to 2:04:41( Edit History Discussion )

Chuck Grassley: would respond to that court decision by, one, including hedge funds in the definition of "investment company." and, two, bringing much-needed transparency to the industry. the hedge fund transparency act is a first step in ensuring that?? commission has clear authority

Chuck Grassley

2:04:42 to 2:04:57( Edit History Discussion )

Chuck Grassley: to do what it has already tried to do. coress must act to ensure that our laws are kept up to date as new types of investments appear. unfortunately, this legislation has not had many friends. these funds don't want people to

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