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Senate Proceeding on Apr 28th, 2010 :: 7:46:00 to 7:59:00
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Amy Klobuchar

7:45:54 to 7:46:15( Edit History Discussion )

Amy Klobuchar: quorum call: m ms. klobuchar: mr. president? the presiding officer: the senator in minnesota. ms. klobuchar: are we in a quorum call, mr. president? the presiding officer: yes, ms. quorum call be vitiated. the presiding officer: without objection. ms. klobuchar: mr. president, i rise today to discuss the very important bill that we're very hopeful we can move on today to start the debate on wall street

Amy Klobuchar

7:46:00 to 7:59:00( Edit History Discussion )
Speech By: Amy Klobuchar

Amy Klobuchar

7:46:16 to 7:46:36( Edit History Discussion )

Amy Klobuchar: reform. i understand that there may be an agreement to move forward with this bill. we don't know that yet, and if it is true that we have an agreement to start the debate on this bill, then it is very fitting that i go through why this bill is so important f we don't have an agreement, then it is even more important, because

Amy Klobuchar

7:46:37 to 7:46:57( Edit History Discussion )

Amy Klobuchar: we know that the american people got severely hurt by the crisis on wall street by the fall of many of our financial institutions, and they were not the ones that are supposed to be hurt, the american people, and we need to fix this so it doesn't happen again. nearly three years after the

Amy Klobuchar

7:46:58 to 7:47:18( Edit History Discussion )

Amy Klobuchar: financial system began to melt down, america continues to suffer the effects of the worst economic crisis since the great depression. millions of americans have lost their jobs, homes, and their retirement savings. although some key indicators are beginning to move in the right direction, many families -- like those that we no in minnesota -- are still struggling and the

Amy Klobuchar

7:47:19 to 7:47:41( Edit History Discussion )

Amy Klobuchar: economic damage is so slow to heal in their towns. on wall street, however, it seems to be back to business as usual. last year wall street's largest firms handed out record bonuses totaling nearly $6 billion, an 18% increase from 2008. meanwhile, overall u.s. per

Amy Klobuchar

7:47:42 to 7:48:02( Edit History Discussion )

Amy Klobuchar: capita income declined 2.6%. so it's little surprise that wall street financiers e not enthusiastic about reforms that could change the way they do business. in fact, some of them claim that wall street just has a few potholes that need fixing. well, i think it needs more than that, mr. president what. wall street really needs is more

Amy Klobuchar

7:48:03 to 7:48:26( Edit History Discussion )

Amy Klobuchar: stop signs at key intersections and some really good traffic cops. this bill that we have today, it is the product of months of bipartisan negotiation. for the first time ever, this bill would create a nine-member financial orsight council chaired by the treasury

Amy Klobuchar

7:48:27 to 7:48:48( Edit History Discussion )

Amy Klobuchar: secreta made up of federal financial. this would serve to oversee financial risk, something that was lacking years, when the market went tumbling down. the domino effect of deeply connected financial companies

Amy Klobuchar

7:48:49 to 7:49:10( Edit History Discussion )

Amy Klobuchar: such as insurance giant a.i.g. just create economic ripples. it cent tsunami wave. this financial oversight counsel shrill b charged with skank the system for systemic risk and putting speed bumps in place to ensure we never see a crisis like this one again. this council will for the first time bring the regulators together to form a picture of

Amy Klobuchar

7:49:11 to 7:49:33( Edit History Discussion )

Amy Klobuchar: the entire system so one regulatoron't be off dealing with one problem while another is dealing with another with no information being shared. this way there'll be one place where they can look at the entire financial system and look for those warning signs of problems. this bill will also stand at the intersection and make firms slow down by increasing the costs of

Amy Klobuchar

7:49:34 to 7:49:54( Edit History Discussion )

Amy Klobuchar: being large and complex. the most interconnected firms will be required to hold larger levels of capital to minimize their risk to the system if t investments go bad. all we're asking sheer that taxpayers don't have through bail out these firms, that they have significant resorrieses and enough resources on hand in case they face troubled times again. if firms are going to create

Amy Klobuchar

7:49:55 to 7:50:15( Edit History Discussion )

Amy Klobuchar: risk to the system, they need to take some responsibility. we clearly saw in this crisis what a lack of capital can bring -- can do, thousand can bring a firm to the brink, and the downward spiral that this can cause when they're unable to attract new investors. now, as much awe would like, we can't simply predict how a

Amy Klobuchar

7:50:16 to 7:50:37( Edit History Discussion )

Amy Klobuchar: future crisis might unfold. and i believe one of the most important lessons we can take from this crisis is that the american taxpayer should never again be left on the hook for the unconscionable bets of wall street. the american taxpayer is not like a casino where you can just go out and play games and throw their money around and then maybe some of it come back and some of it won't.

Amy Klobuchar

7:50:38 to 7:50:58( Edit History Discussion )

Amy Klobuchar: we have to make sure this doesn't happen again. preventing american taxpayers from being forced to bail out financial firms starts with strengthening big financial firms to better withstand stress, looking out for systemic risk, and putting a price on activities that pose risk to the financial system. in any event that a firm is to fail, this bill creates a safe

Amy Klobuchar

7:50:59 to 7:51:20( Edit History Discussion )

Amy Klobuchar: way to liquidate failed financial firms that won't leave the taxpayer on the hook. first of all, it updates the federal res. authority to allow systemwide support but to longer allows i prop up an individual firm. it requires large financial companies to submit plans for their rapid and orderly shutdown

Amy Klobuchar

7:51:21 to 7:51:41( Edit History Discussion )

Amy Klobuchar: should they start to go under. these plans will help regulators understand the structure of the companies they oversee and serve as a road map for shutting them down if the company fails. most large financial companies are expected to be resolved through the bankruptcy process. bankruptcy allows these -- those that invest in a firm to better assess their risk and it allows

Amy Klobuchar

7:51:42 to 7:52:04( Edit History Discussion )

Amy Klobuchar: the pilityd that a company will emerge -- the possibility that a company will emerge in some way intact. if we have a situation where a firm won't go into bankruptcy and its failure could bring down the whole system, we make the process of resolution as hard as we can on that firm. we start by shutting down the business and throwing out those that caused the mess.

Amy Klobuchar

7:52:05 to 7:52:25( Edit History Discussion )

Amy Klobuchar: this is a very different route than we took where we propped up firms and kept them alive because of the risk that it could pose to the entire financial system. we don't want to be in that position again. the taxpayers don't want to be in that position again. if a firm chooses resolution, the treasury, the fdic, anded the federal reserve must first all degree to put a company into

Amy Klobuchar

7:52:26 to 7:52:46( Edit History Discussion )

Amy Klobuchar: the orderly liquidation process. a pafnl three bankruptcy judges must then agree convene and agree within 24 thyrse a company is insolvent. at that point, the fdic would step in and resolve this through an orderly process and in a way that doesn't harm the overall system. the cost of resolution would be paid for not by the taxpayer but

Amy Klobuchar

7:52:47 to 7:53:07( Edit History Discussion )

Amy Klobuchar: by a $50 billion fund built up over time -- and this is key -- paid for by the industry, paid for by the descrirks not by the taxpayers. -- paid for by the industry, not by the taxpayers. i would like to talk about a key portion of the bill that came out of the agriculture committee, led by chairman lincoln. the portion of that bill i want to talk about is the focus on

Amy Klobuchar

7:53:08 to 7:53:28( Edit History Discussion )

Amy Klobuchar: transparency and accountability to the over-the-counter derivatives market. bringing transparency and accountability to the over-the eover-the-counter derivatives market is as important as any other piece of reform that we're going to be debating.

Amy Klobuchar

7:53:29 to 7:53:51( Edit History Discussion )

Amy Klobuchar: reckless trading of unrecreated over-the-counter derivatives played a significant role in triggering the financial crisis in the fall of 2008. a.i.g. using a type of derivative known as a credit default swap took enormous risk and at least $400 billion worth of other companies' loans including those ofehman

Amy Klobuchar

7:53:52 to 7:54:12( Edit History Discussion )

Amy Klobuchar: brothers were a at steak. treasury and the feral reserve were forced to step in to accept unknown, untold risk to the world financial system. in the end, the governmen government mutt put up $180 billion to save a.i.g. from collapse. i point it out that mention the dangers of an unregulated

Amy Klobuchar

7:54:13 to 7:54:34( Edit History Discussion )

Amy Klobuchar: derivatives market. derivatives when used properly and backed by sufficient collateral, play a crucial role in our financial and economic system. you think about airlines that want to hedge their risk with the price of oilment, you think about agribusinesses, all over country that goes on. but this is a whole different thing that we're talking about,

Amy Klobuchar

7:54:35 to 7:54:55( Edit History Discussion )

Amy Klobuchar: when irresponsible financial institutions are allowed to make un bets hidden from the view of the financial regulators, the entire financial system is threfntsed. right now the over-the-counter market counts its transaction into the hundreds of trillions of dollars. but under the current system, there are almost no requirements

Amy Klobuchar

7:54:56 to 7:55:17( Edit History Discussion )

Amy Klobuchar: that the most baiivelg terms of these contracts are -- or even their existen rergtz or the public. think about it, trillions of dollars changing hands and no one even knows what's hasmg the goal of the bill we have today is to finally bring transparency and accountability to these unreg markets. for the first time, all trades will be required to be reported

Amy Klobuchar

7:55:18 to 7:55:38( Edit History Discussion )

Amy Klobuchar: to the regulators and to the public. with that information, regulators will be able to effectively monitor risk to the system and prevent market manipulation and abuse. transparency will also benefit those that use derivatives to hedge risk, as they will be better-equipped to evaluatehe market as price information will

Amy Klobuchar

7:55:39 to 7:56:00( Edit History Discussion )

Amy Klobuchar: finally be made public. by requiring mandatory clearing and trading for standardized devatives, this bill will greatly reduce the abity of risk to build up to a point that could once again burst and threaten the financial stability of our financial system. i've obvious said, mr. president, that when wall street gets a cold, main street got pneumonia.

Amy Klobuchar

7:56:01 to 7:56:21( Edit History Discussion )

Amy Klobuchar: we can't let this happen again. in this bill, careful consideration has been made to ensure that commercial entities -- a this was the work done in our agriculture committee -- to make sure tha commercial entities that hedge solely to mitigate their own commercial risk are not brought under requirements meant to address the failures of a market that they had no hand in.

Amy Klobuchar

7:56:22 to 7:56:42( Edit History Discussion )

Amy Klobuchar: you think about all the people that didn't have aand in this problem tha got affected. you think even about our small banks, mr. president, in the state of minnesota. they didn't engage in this kind of risky behavior. i think about them sometimes standing there with their briefcases in the heartland, with those credit default risks

Amy Klobuchar

7:56:43 to 7:57:04( Edit History Discussion )

Amy Klobuchar: swirlin heads that they never used saying "toto, we're not in kansas anymore." some banks in this country had a brain. some banks didn't go to oz and didn't think they could go bet with the american taxpayers' money. but the most important thing he is to make sure we put a traffic cop at those intersections, that we put some

Amy Klobuchar

7:57:05 to 7:57:26( Edit History Discussion )

Amy Klobuchar: stop signs at those intersections, that wall street isn't allowed to drive down in their ferraris while the government is following behind in a model-t ford. enacting these reforms is not just important for our financial markets,t is important for ordinary americans. while very few people outside those involved in these markets,

Amy Klobuchar

7:57:27 to 7:57:47( Edit History Discussion )

Amy Klobuchar: their misuse contributed to a recession that left millions without jobs, businesses shuttered and trillions in household savings lost. the legislation we passed out of the agriculture committee that chairman dodd has worked to incorporate into this bill will bring these dark markets into the light of day and ensure that they will never again threaten the stability of this financial

Amy Klobuchar

7:57:48 to 7:58:08( Edit History Discussion )

Amy Klobuchar: system. mr. president, it is very important that we bring this before the senate, that we begin debate on this bill, and that's, why as we look at the rumors swirling around that in fact there is a deal that we're going to be at least -- a bill deal to debate, not on the bill yet. but we think this is a good bill.

Amy Klobuchar

7:58:09 to 7:58:32( Edit History Discussion )

Amy Klobuchar: we look forward to working with our colleagues on it. we can't even get to "go." we can't even get to sction start" if we can't get this bill to debate. we look forward to getting it dofnlt the american people who lost their jobs, their homes, and their savings are scared every day that it's going to happen again because of the recklessness of wall street deserve no less.

Amy Klobuchar

7:58:33 to 7:58:51( Edit History Discussion )

Amy Klobuchar: thank you, mr. president. i note the eables after quorum. -- i noalt th quorum. the presiding officer: the clerk will call the roll.

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