Video archive of the US Congress

Senate Proceeding on May 4th, 2010 :: 1:06:25 to 1:14:55
Total video length: 2 hours 27 minutes Stream Tools: Stream Overview | Edit Time

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Bob Corker

1:06:19 to 1:06:40( Edit History Discussion )

Bob Corker: amounts of cocain into the united states. those same crafts can be used to deliver a weapon of terror. this administration and the world has to not just focus on iran but has to focus on the dangerous ties between iran and venezuela. mr. president, with that, i yield the floor. i see me friend and colleague from ten fen is here to speak. mr. corker: mr. president? the presing officer: the senator from tennessee is

Bob Corker

1:06:25 to 1:14:55( Edit History Discussion )
Speech By: Bob Corker

Bob Corker

1:06:41 to 1:07:01( Edit History Discussion )

Bob Corker: recognized. mr. corker: i thank you. before i came down to spe today to some comments made by the junior senator from delaware, but before that i did want to mention that i hope very soon that the administration will work closely and i'm sure they will because i know they're very understanding of what's haening in tennessee.

Bob Corker

1:07:02 to 1:07:22( Edit History Discussion )

Bob Corker: t-but we obviously have quite a disaster under way. we have people who've lost their lives, people who've lost their homes, pple who've lost their lives work. and i appreciate so much the work of our governor, the many makers especially the mayor of nashville, but also mayors across our state. i appreciate the response that all of them have given in coming

Bob Corker

1:07:23 to 1:07:43( Edit History Discussion )

Bob Corker: to the aid of our citizens there, and again i know this administration will begin to work very closely with them in the same remarks and i thank them for that in advance. mr. president, i came down to speak specifically today about the comments from my friend from delaware delaware regarding the fact that because large institutions in this country

Bob Corker

1:07:44 to 1:08:04( Edit History Discussion )

Bob Corker: have a funding advantage over some of the smaller institutions, we ought to break them up. mr. president, i have, you know, concerns certainly about some of the situations we get ourselves into when large institutions -- when a large institution gets into trouble. i don't think that having 100

Bob Corker

1:08:05 to 1:08:25( Edit History Discussion )

Bob Corker: senators here on the floor arbitrarilyeciding what size a financial institution ought to be or be broken up necessarily, i don't think that's the right aproasm. dwhie think is a better approach, and i think this bill attempts to do and doesn't quite get it right is ensure that if an institution fails it actually fails.

Bob Corker

1:08:26 to 1:08:46( Edit History Discussion )

Bob Corker: and the shareholders of the company know that they're going to be out of their entire investment, the creditors know what's going to happen. the bill attempts to do that. my sense is that senator shell bands senator dodd are working together -- and i think may actually have come to an agreement over a way to close up

Bob Corker

1:08:47 to 1:09:09( Edit History Discussion )

Bob Corker: some of the loopholes that exist in this bill. what i would suggest to my friend from dcal is just to support those efforts because i think if that occurs -- and my sense is it will based on conversations i had -- that what will happen very quickly is the credit rating nations this country -- they've already

Bob Corker

1:09:10 to 1:09:30( Edit History Discussion )

Bob Corker: indicated that to be the case, not that they've been stellar. but the fact is that many of them are beginning to look at these large institutions in a different way because they believe we may pass legislation here on the floor that says that if they fail, they actually go out of business. and that creates a situation

Bob Corker

1:09:31 to 1:09:51( Edit History Discussion )

Bob Corker: where that moral hazard doesn't exist, where people in essence loan money or give credit or invest in these larger institution at rates that are lesser than what might be the case for smaller institutions. so, mr. president, what i would say is, look, the best way we can sort of level the playing

Bob Corker

1:09:52 to 1:10:12( Edit History Discussion )

Bob Corker: field is to ensure that if a big company fails, it fails. and again i think we're on the verge of getting that solved. there will be many people on my side of the aisle -- and by the way, i respect this position very much, that think the only way to do that is through bankruptcy and are talking about either an 11-f secon of the code or an section 14 of the bankruptcy code where highly

Bob Corker

1:10:13 to 1:10:35( Edit History Discussion )

Bob Corker: complex financial holding companies would go into bankruptcy if they fail. by the way, i think we should do everything we could to strengthen that. at the same time i think -- in the interim anyway, we need a resolution mechanism so if a large company fails, we have a

Bob Corker

1:10:36 to 1:10:57( Edit History Discussion )

Bob Corker: mechanis maybe you let the laws sunset. but again what i would say to my friend from delaware, who i respect -- and i certainly love his passion on this issue -- that the best way we can get that level playing field is to ensure that these large institutions fail when they fail.

Bob Corker

1:10:58 to 1:11:20( Edit History Discussion )

Bob Corker: and that will change that funding level that he's talking about. now, as a matter of fact, we're giving regulators in this bill, if it passes in its form right now -- and i sure hope we make lots of; ichs i cannot support the bill as it is today -- but the bill actually addresses capital levels as institutions

Bob Corker

1:11:21 to 1:11:42( Edit History Discussion )

Bob Corker: become larger and more risky. additional capital requirements are required, which automatically drives up their cost of funding. there's section that senator warner and i worked on called the contingent capital where the regulators can actually cause these institutionso have contingent capital where if a creditor has loaned money to an institution and this institution

Bob Corker

1:11:43 to 1:12:03( Edit History Discussion )

Bob Corker: gets in trouble, that turns to equity. so it's a buffer -- again, i think the cost of that is going to be more expensive than most credit that would begy ton an institution like this. so again i think -- i think the best way to deal with organizations that are large in this country is to deal with it

Bob Corker

1:12:04 to 1:12:25( Edit History Discussion )

Bob Corker: with the many tools that exist in this bill th need to be improved, no doubt, and hopefully over the course of the next two weeks will be improved. but that's a much better solution than just arbitrarily 100 senators saying, well, if you're x part of our g.d.p., you have a got to be taken down to size. i want to just reiterate, as i did last week on the floor, that

Bob Corker

1:12:26 to 1:12:46( Edit History Discussion )

Bob Corker: ou country has by far the largest gross domestic product in the world. i mean, we dwarf everybody. and we have no banks in the top five in our country. we have two banks in the top 15 -- excuse me, in the world. we have no banks in the top five in the world. we have two in the top 156789 so i'

Bob Corker

1:12:47 to 1:13:08( Edit History Discussion )

Bob Corker: globalization and as we hope to ship goods and deal with people around the world our best solution is to hand did i cap the ability -- to handy cap the ability of our banks. i'm not sure it is in our best interest to arbitrarily deciding what size a company can be, a financial holding company can be.

Bob Corker

1:13:09 to 1:13:29( Edit History Discussion )

Bob Corker: i thank you for letting me thank speak to this iran. i do hopever the course of the xt couple weeks we can make significant changes in the consumer title aism hearing from people all across thetate of tenton. they're ordinary citizens who wake up daily who do things that are outside the financial

Bob Corker

1:13:30 to 1:13:51( Edit History Discussion )

Bob Corker: sphere, at least they believe they dovment they're very concerned about the reach of our consumer protection agency as it is outlined in this bill. the fact that it is unfettered, that there's no board in any way to control it the fact that there's no federal preemption, the fact that there will now be 50 state attorney generals dealing with our banks, the fact that this consumer entity has

Bob Corker

1:13:52 to 1:14:14( Edit History Discussion )

Bob Corker: the ability to be involved in underwriting loans. you can imagine some of the problems that have occurred through c.r.a. recently and think about this. it would be c.r.a. on steroids. those are some ib ires that i don't think we need to address in this bill. i hope that we will rlize in

Bob Corker

1:14:15 to 1:14:37( Edit History Discussion )

Bob Corker: this country is over an expansive government that reaches out unnecessarily in these lives. i want to say in closing, i applaud the efforts that the senator from connecticut and the senator from bam bam have under way to fix this resolution title in such a way that we all know that if a firm fails, it's going to go out of business. and i think that will adequately

Bob Corker

1:14:38 to 1:14:55( Edit History Discussion )

Bob Corker: address the concerns that the junior senator from delaware brought up earlier that says that these big firms in some cases have funding advantages. i think once the public understands that these firms can go oust business just like any other entity, that that will change. anthe i think we're already seeing that through early

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