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Senate Proceeding on Apr 29th, 2010 :: 2:26:20 to 2:43:45
Total video length: 6 hours 11 minutes Stream Tools: Stream Overview | Edit Time

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Barbara Boxer

2:26:10 to 2:26:30( Edit History Discussion )

Barbara Boxer: i want to thank her for actually offering our first amendment on this bill, something that i think brings all of us together on. so i thank her f and interest in this subject. mrs. boxer: mr. president? the presiding officer: the senator from california is recognized. mrs. boxer: thank you very much, mr. presidt. i want to -- i want to thank senator dodd for all his work on

Barbara Boxer

2:26:20 to 2:43:45( Edit History Discussion )
Speech By: Barbara Boxer

Barbara Boxer

2:26:31 to 2:26:52( Edit History Discussion )

Barbara Boxer: so many issues. just the way things worked out, he has been so pivotal in health care reform and now in wall street reform. this is an era of reform and my friend should be very proud that he happens to be here at this time because we can't go back to the days we just left, and as a

Barbara Boxer

2:26:53 to 2:27:14( Edit History Discussion )

Barbara Boxer: reminder, i want to show you some of the headlines senator dodd and senator warner, i think it's worth a minute of looking at these this is taken from 2007 and 2008, some of the headlines that "u.s. unemployment rate hits 10.2%, highest in 26 years."

Barbara Boxer

2:27:15 to 2:27:36( Edit History Discussion )

Barbara Boxer: how about this one -- "nightmare on wall street." "the bailout to end all bailouts." "wall street's latest downfall: madoff charged with fraud." "credit crunch continues as lending rates climb." "jobs, wages nowhere near rock bottom yet."

Barbara Boxer

2:27:37 to 2:27:58( Edit History Discussion )

Barbara Boxer: "where do we go from here? nasdaq in biggest fall since the dot-com crash. dow dives 778 points." "u.s. loses 533,000 jobs in biggest drob since 1974." and you can see the look on this man's face. he is obviously standing in the middle probably of the new york

Barbara Boxer

2:27:59 to 2:28:20( Edit History Discussion )

Barbara Boxer: stock exchange, and that explains how everybody felt as our constituents lost their wealth, they lost their wealth and with it their confide america. i want to continue with just one more chart because of us want so much behind us, and that's what we will do with this bill.

Barbara Boxer

2:28:21 to 2:28:42( Edit History Discussion )

Barbara Boxer: but we have to rember, economy in crisis, what now? u.s. pension insurer lost billions in market." housing prices take biggest dive since 1991." "full of doubts, u.s. shoppers cut spending." "wall street employees set to get $145 billion for 2009." the bonuses during this time.

Barbara Boxer

2:28:43 to 2:29:03( Edit History Discussion )

Barbara Boxer: and "how low can they go? home prices drop 42%." "carnage conties. 524,000 jobs lost in december." and the "san jose mercury news" from my home area, wave, san josero neighborhoods."

Barbara Boxer

2:29:04 to 2:29:25( Edit History Discussion )

Barbara Boxer: so the reason i take my colleagues' time to remind us of this is that what we're doing here i so important and i'm so proud of the work that, senator dodd, you did in your committee that has gotten us to this point, and that our republican friends let this bill move forward. we will have our debates, and that fine, but we can't afford

Barbara Boxer

2:29:26 to 2:29:47( Edit History Discussion )

Barbara Boxer: to go back to those old days. and by the way, those old days could happen unless we act as our president has stated. i want to take the time to thank senator dodd in particular for working with us as well as thank the administration for working with us to come up with an amendment which will synthesiz

Barbara Boxer

2:29:48 to 2:30:08( Edit History Discussion )

Barbara Boxer: exactly what this bill does, and the purpose of this amendment which is pending at the desk which i'm hopeful we'll vote on on tuesday says to prohibit taxpayers from ever having to bail out the financial sector. when i heard my colleagues on the other side say senator dodd's

Barbara Boxer

2:30:09 to 2:30:30( Edit History Discussion )

Barbara Boxer: would ensure taxpayer bailouts, i knew it was false. and i went to senator dodd and colleagues on the committee and is that i had didn't understand why these comments were coming from the other side. it is like saying this glass of water a cup of coffee? no, this glass of water is a glass of water. it is not coffee.

Barbara Boxer

2:30:31 to 2:30:51( Edit History Discussion )

Barbara Boxer: and if you say it seven, eight, nine times that it is coffee, somebody might believe it. that's how i viewed the comments guaranteeing bailouts when in fact it is not. so i said to chairman dodd, i have an idea that we should put together a very simple bill, an amendment to the bill that basically says what we know is true.

Barbara Boxer

2:30:52 to 2:31:13( Edit History Discussion )

Barbara Boxer: that all financial companies that are put into receivership thupbd title shall be -- under this title shall be liquidated. no company is going to be kept afloat. all funds spended will be repaid

Barbara Boxer

2:31:14 to 2:31:34( Edit History Discussion )

Barbara Boxer: to the taxpayers by the financial sector through assessments or the sale of the assets of the company. and then we repeat at the end, taxpayers shall bear no losses from the exercise of any authority under this i'm going to put up the boxer amendment. it simply fits right on this

Barbara Boxer

2:31:35 to 2:31:56( Edit History Discussion )

Barbara Boxer: chart, i say to my friend. it's ver simple. if a company is taken into receivership, liquidation must follow. nobody is beingept afloat. no one's bus afloat. they are liquidated. and recovery of funds, all funds expended in the liquidation of a financial company shall be recovered either from the

Barbara Boxer

2:31:57 to 2:32:17( Edit History Discussion )

Barbara Boxer: disposition of assets of such financial company or shall be the responsibility of the financial sector through assessments. and lastly, just in case people really wanted it stated -- and i see some smiles on faces because we worked together to make sure no one could turn this around, "no loss to taxpayers.

Barbara Boxer

2:32:18 to 2:32:38( Edit History Discussion )

Barbara Boxer: taxpayers shall bear no loss from the exercise of any authority under this title." so let there be no mistake, senator dodd's arms were open to this amendment. he said this reflects exactly what we've done. but he said, senator, if you feel better if we put it in one place, we'll do it. i just think it's important for

Barbara Boxer

2:32:39 to 2:32:59( Edit History Discussion )

Barbara Boxer: the american people to understand the simplicity of this approach. no loss to taxpayers. period, end of quote. so if somebody goes on tv this weekend and says this bill is about bailing out comnies and keeping them afloat with taxpayer funds, it cannot be done under the bill.

Barbara Boxer

2:33:00 to 2:33:20( Edit History Discussion )

Barbara Boxer: and this amendment certainly brings it home in a very simple, plain-english fashion. so i'm proud to be working with my colleague, senator dodd. i used to sit on the banking committee, and i was kind of lured off the committee because the people in california said we

Barbara Boxer

2:33:21 to 2:33:42( Edit History Discussion )

Barbara Boxer: have to have somebody on the commerce committee. we have so much at stake there. and so it was tough for me to walk away, but i did walk away, but i still retain the relationships. i'm going to go through what's in the dodd bill that i think is so terrific. then i'm floor because senator dodd has been talking about himself, and i think he deserves

Barbara Boxer

2:33:43 to 2:34:06( Edit History Discussion )

Barbara Boxer: to have a bit of the rest of us should come over here and talk about it. again, taxpayer bailouts are done, and we know that the bill itself does it. but we've made it clear. taxpayers are covered. we will have a cop on the beat for our consumers.

Barbara Boxer

2:34:07 to 2:34:27( Edit History Discussion )

Barbara Boxer: we will know that a consumer financial protection bureau has only one job, and that's the job to look after our consumers so that they are protected from the kind of deceptive and abuses -- and abusive practices that fueled this crisis. and let's face i this crisis

Barbara Boxer

2:34:28 to 2:34:48( Edit History Discussion )

Barbara Boxer: was fueled by wall street, by speculation, no-leverage requirements, lots of things; dark markets. this bill takes these issues on. we see another part: brings disclosure to dark markets. the bill eliminates the loopholes that allows reckless speculative practices to go

Barbara Boxer

2:34:49 to 2:35:11( Edit History Discussion )

Barbara Boxer: unnoticed and brings real regulation to derivatives markets and the shadow banking system. i think we're going to have real debates over this, but i can say right now when i worked on wall street so many years ago, i have to say, too many years ago to remind myself of, but let's just say it was a long time ago and it was in the 1960's, those were

Barbara Boxer

2:35:12 to 2:35:32( Edit History Discussion )

Barbara Boxer: the years when a 12 million share day on wall street was breaking all records. now it's a billion share day; it's not much. we didn't have these kind of instruments. we didn't have these kind of toxic instruments that were so complex that when i asked treasury secretary paulson about

Barbara Boxer

2:35:33 to 2:35:53( Edit History Discussion )

Barbara Boxer: it -- he was george bush's secretary of the treasury -- he said it's hard for me to really explain this to you. that's a fact. it didn't build my confidence up very much. i have to say we need to have a financial system that's understandable by everybody, but

Barbara Boxer

2:35:54 to 2:36:15( Edit History Discussion )

Barbara Boxer: certainly the secreta of the treasury shouldn't have to hold his hand and say "i can't really explain it." the best way is sunshine. senator dodd, you did a great job in working to bring disclosure to the dark markets. and senator lincoln, working through the agriculture committee, i think brought us even more protection.

Barbara Boxer

2:36:16 to 2:36:36( Edit History Discussion )

Barbara Boxer: and that's a very, ver thing. because i think the president id it well. the president said we want everyone to prosper. we want everyone to be innovative. but we don't want to put our people at risk. when people start losing in the

Barbara Boxer

2:36:37 to 2:36:57( Edit History Discussion )

Barbara Boxer: ways we were losing, 20% of our net worth, 40%, 50%. the market went down, mr. president, 50% of its value. a lot of people lost their dreams. it was unnecessary, but it happened because there were markets that were in the dark and there were people who were not really fulfilling their

Barbara Boxer

2:36:58 to 2:37:18( Edit History Discussion )

Barbara Boxer: fiduciary responsibility to their clients. so what else does the dodd bill do? it curbs risky behavior on wall street. the bill provides for strict new capital and borrowing requirements as financial companies grow in size and complexity and pose a risk to the financial system. regulators will restrict

Barbara Boxer

2:37:19 to 2:37:40( Edit History Discussion )

Barbara Boxer: proprietary trading, speculave gambling by critical financial firms. we have situations where a firm that is advising a client -- we know this happened with goldman sachs -- advising clients to buy a particular instrument which happened to be worthless -- and i can't use the word that they,

Barbara Boxer

2:37:41 to 2:38:01( Edit History Discussion )

Barbara Boxer: the traders used to describe it, but let's just -- because this is a family audience. these were junk, and they called them worse than that. they were junk, and they were being sold to the customers of goldman while goldman was taking a short position -- in other

Barbara Boxer

2:38:02 to 2:38:22( Edit History Discussion )

Barbara Boxer: words, a position that bet on these instruments failing. and the kind of e-mails that came out really were reminiscent of the e-mails that came out during the enron scandal, bragging about how widows and orphans were going to get hurt. well, if anything we should do here is protect our people, not put them at greater risk. there's going to be an early

Barbara Boxer

2:38:23 to 2:38:43( Edit History Discussion )

Barbara Boxer: warning system created to prevent a future crisis, a financial stability oversight council to focus on the risks before they lead to a crisis. and as a last resort, the regulators can break up a company that's too big to fail. and, lastly, of the big accomplishments of this bill,

Barbara Boxer

2:38:44 to 2:39:05( Edit History Discussion )

Barbara Boxer: the bill protects against securities markets scams. it mandates management improvements and increases funding for the s.e.c. the bill creates a new s.e.c. office of credit rating agencies to strengthen regulation of credit rating agencies, many of which fail to correctly rate risky financial products. and i have to say i'm working on

Barbara Boxer

2:39:06 to 2:39:26( Edit History Discussion )

Barbara Boxer: an amendment that is even stronger because for me, as someone who relied so many years ago on the honesty of these rating companies -- these are the companies that say this is double a, this is triple a, this is a, this is b, this is bad. but they're getting paid by the

Barbara Boxer

2:39:27 to 2:39:47( Edit History Discussion )

Barbara Boxer: people who have an interest in them giving a good rating that's wrong. and we have to do something here to insert some type of responsibility to the public. these rating agencies have a responsibility to the public. and i'm working on some approaches. we don't have it ready.

Barbara Boxer

2:39:48 to 2:40:08( Edit History Discussion )

Barbara Boxer: we're going to talk to senator dodd. we hope he'll be be amenable to it. but we have some thoughts about it. you know, in this area, the people of this country are really putting their hopes and dreams into the financial markets. and it's been a great thing in general over the years.

Barbara Boxer

2:40:09 to 2:40:30( Edit History Discussion )

Barbara Boxer: it's been a great thing becse america's a great country, and we have innovation and innovators, and we have venture capitalists that put it all on the line, and they hit. and we can all do very well if we invest, even if we do it through our 401(k) or our

Barbara Boxer

2:40:31 to 2:40:52( Edit History Discussion )

Barbara Boxer: company does it through a pension plan, we know most americans have a stake in these markets. you know, i heard some things from goldman sachs, they said something like this: well, the people we were selling to were sophisticated, and they should have known better. but they stopped short of the truth. maybe they were sophisticated

Barbara Boxer

2:40:53 to 2:41:14( Edit History Discussion )

Barbara Boxer: and maybe they weren't doing their job either, and, therefore, it trickles down to the people who were relying on that so-called sophisticated investor. all we're saying is we need reasonable rules of the road. we want to know a rating agency is giving it their best shot to tell the truth about a security.

Barbara Boxer

2:41:15 to 2:41:36( Edit History Discussion )

Barbara Boxer: we want to ensure that. we want to make sure that if there are new exotic instruments being traded, that's fine. but let's take a look at them in the light of day so that people are fully informed. and then if you take a gamble, if you're fully informed, that's one thing. but if you don't understand that

Barbara Boxer

2:41:37 to 2:41:57( Edit History Discussion )

Barbara Boxer: you're another. so, again, i am very pleased that we're at this point. somebody said the only reason we got here is that we threatened to work maybe there's some truth in that. frankly, it doesn' what the reason. we are at this to this bill.

Barbara Boxer

2:41:58 to 2:42:18( Edit History Discussion )

Barbara Boxer: my republican friends who say they want to improve it, they didn't try to do it in the committee, it's my understanding. but if they want to do it now, i welcome them because i'm sure i'll support some of their amendments if they're in the spirit of this bill. and the spirit of this bl is protecting consumers, protecting

Barbara Boxer

2:42:19 to 2:42:40( Edit History Discussion )

Barbara Boxer: taxpayers, making sure taxpayers are never on the hook, and stopping one where every newspaper had pictures of people were just at a loss to understand how could this happen in america. and i get the chills thinking about the conversation many

Barbara Boxer

2:42:41 to 2:43:04( Edit History Discussion )

Barbara Boxer: democratic senators had -- and i know republicans had the same conversation with the secretary of the treasury and with the fed chairman, ben bernanke, in which they basically said we are on the brink of collapse. we may never come back from this situation. we can't forget that. and if we don't move to correct

Barbara Boxer

2:43:05 to 2:43:27( Edit History Discussion )

Barbara Boxer: the system in ways that are not overly burdensome, but we get it right -- and i think senator dodd has pretty much gotten that sweet spot on this thing. he may want to move here or there with an amendment. if we can do this, if we did nothing else -- and, by the way, we have done other things and we will do more. this is crucial.

Barbara Boxer

2:43:28 to 2:43:45( Edit History Discussion )

Barbara Boxer: it's crucial to consumer confidence. consumer confidence fuels 70% of the market. let's do this right. i want to thank my republican friends for deciding to work with us. i want to thank senator dodd for his patience, for his passion. and i'm very happy that he's leading us on this because he's so effective and he knows what

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