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Senate Proceeding on May 4th, 2010 :: 1:59:25 to 2:09:50
Total video length: 2 hours 27 minutes Stream Tools: Stream Overview | Edit Time

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Barbara Boxer

1:59:22 to 1:59:42( Edit History Discussion )

Barbara Boxer: based, obviously the bipartisan support we have shows there's widespread support idea. i thank the chairman again his interest and his support. and i yield the floor. th senator from california is recognized. mrs. boxer: thank you, mr. president. i'm delighted to be here this morning, and i'm very anxious to

Barbara Boxer

1:59:25 to 2:09:50( Edit History Discussion )
Speech By: Barbara Boxer

Barbara Boxer

1:59:43 to 2:00:03( Edit History Discussion )

Barbara Boxer: get started on voting on amendments so we can tackle this issue of wall street we just have to keep an eye on what happened to our economy because wall street had no reasonable regulation, rkets were

Barbara Boxer

2:00:04 to 2:00:25( Edit History Discussion )

Barbara Boxer: operating in the dark. there was very little fiduciary responsibility involved and all of this gambling with credit default swaps and c.d.o.'s. i'm reading a book called "the big short." if anyone wants to try to understand what happened, just read that.

Barbara Boxer

2:00:26 to 2:00:48( Edit History Discussion )

Barbara Boxer: it's unbelievable what happened with derivatives all operating in -- in the dark. and i want to say to senator dodd how much i appreate the work that he has put into this bill. and just to put it simply what

Barbara Boxer

2:00:49 to 2:01:10( Edit History Discussion )

Barbara Boxer: the bill does is ends taxpayer bailouts, flat out. and that's why i when members of the senate on the other side of the aisle came down to the senate floor and started criticizing the bill saying it didn't end taxpayer bailouts when that's what it did. and that led me to think that i would like to work with senator dodd on an amendment that

Barbara Boxer

2:01:11 to 2:01:34( Edit History Discussion )

Barbara Boxer: clarifies this main point in the bill. senator dodd and his staff, and i worked with the obama administration on it as well, said let's sit down and work it out. so we have a very strong amendment here sense of the senate. it is real law. it is strong law and i would

Barbara Boxer

2:01:35 to 2:01:58( Edit History Discussion )

Barbara Boxer: hope it would pass -- i say to my friend senator dodd i hope this would pass by a huge number of votes. what we do here -- and it's some depth in part c, taxpayers shall bear no losses are from the exercise of any authority under this title. that isn't saying they shouldn't bear a loss.

Barbara Boxer

2:01:59 to 2:02:20( Edit History Discussion )

Barbara Boxer: it says, taxpayers shall bear no loss. they shall bear no loss. and the rest of it basically says no company is going to be kept alive in this bill with any taxpayer money if -- if a company is in trouble and they need to be liquidated, then the funds that are used will be

Barbara Boxer

2:02:21 to 2:02:41( Edit History Discussion )

Barbara Boxer: recovered from the disposition of assets of such financial company or shall be the responsibility of the financial sector through assessmts. that's very similar to fdic. as we know, when we put our hard-earned dollars into the bank, we're covered now up t to $250,000 because there's an

Barbara Boxer

2:02:42 to 2:03:02( Edit History Discussion )

Barbara Boxer: insurance program which is paid for via an assessment on the banks. it's called fdic. and we all know because we worry about that. if there was anything that was learned from t great depression, is that there was a run on the banks. and guess what? the banks were out of money and

Barbara Boxer

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

Barbara Boxer: people literally lost their world. so in those years a long ago fdic insured. very important. we're doing the same thing here. we're saying that if there's a liquidation required of some of these hot shotirms that continue to gamble, that continue to take risks and something goes wrong, they're

Barbara Boxer

2:03:25 to 2:03:46( Edit History Discussion )

Barbara Boxer: not going to be kept alive. they're going to be put to sleep and the money that is expended to do that will come from the financial sector itself. and taxpayers, no losses from the exercise of

Barbara Boxer

2:03:47 to 2:04:07( Edit History Discussion )

Barbara Boxer: any authority under this title. mr. president, what else does the dodd bill do? it ends taxpayer bailouts, and with my amendment, that's going to be even clearer. it puts a cop on the beat for consumers. why is this important? becausehe people who

Barbara Boxer

2:04:08 to 2:04:28( Edit History Discussion )

Barbara Boxer: trampled upon during the whole wall street crisis were middle-class families that depended on these big firms to protect their pension funds to protect their -- funds, to protect their associates that they might have had in a mutual fund. instead all that went out the window.

Barbara Boxer

2:04:29 to 2:04:51( Edit History Discussion )

Barbara Boxer: and we need to also have a cop on the beat to look at credit card companies and the kinds of things that they do that harm our people. the third thing, it brings disclosure to dark markets. the bill eliminates loopholes that allows reckless speculative practices to go unnoticed.

Barbara Boxer

2:04:52 to 2:05:12( Edit History Discussion )

Barbara Boxer: and it brings real regulation to the derivatives markets and a shadow banking system that grew up around it. now, these kind of instruments, as they're called, derivatives, they're based on -- let's just take an example of a bunch of mortgages that are packaged

Barbara Boxer

2:05:13 to 2:05:35( Edit History Discussion )

Barbara Boxer: together and sold. and somebody came up with a great idea. well, maybe we should take insurance against them going broke and they played both sides of it. and derivatives on derivatives. and the house of cards came down. we want disclosure to these dark

Barbara Boxer

2:05:36 to 2:05:56( Edit History Discussion )

Barbara Boxer: markets otherwise the regulators simply don't know what's going on. risky behavior on wall street will be curbed. there are strict new capital and borrowing requirements as financial companies grow in size and complexity. there's restrictions on proprietary trading.

Barbara Boxer

2:05:57 to 2:06:19( Edit History Discussion )

Barbara Boxer: that means a bank trading for their own interest. we had circumstances where a bank was telling its customers to buy a stock or a bon and they were shorting -- they were making a bet that it would go down while they were selling it to people and said, oh, it has a great future.

Barbara Boxer

2:06:20 to 2:06:40( Edit History Discussion )

Barbara Boxer: there is something just so unfair about this. and, frankly, corrupt about this. somewhere the fiduciary responsibility here? how do you go out and tell your best customers, hey, this is good. we're going to go forward, buy this, and then go back to your office and short it so you can

Barbara Boxer

2:06:41 to 2:07:01( Edit History Discussion )

Barbara Boxer: make money on it collapsing. there's something very wrong with that. we have lost our way. they have lost their way. we have protection against securities market scams, improvements at the s.e.c. where we'll have the office of credit rating agencies that will

Barbara Boxer

2:07:02 to 2:07:25( Edit History Discussion )

Barbara Boxer: strengthen the regulation of credit rating agencies, many of which fail to rate risky finaial products. you know, moody's one example, standard & poors is the other. and they said, oh, this i triple -- aaa. these assets based on all these

Barbara Boxer

2:07:26 to 2:07:47( Edit History Discussion )

Barbara Boxer: mortgages, this is a aaa when they knew it wasn't. conflict of interest. th people who wanted them to come out and say they were rated aaa. there's something awful about this. if you cannot trust a rating agency, how do you know what you want to buy for your portfolio?

Barbara Boxer

2:07:48 to 2:08:09( Edit History Discussion )

Barbara Boxer: i don't care if you're a small investor or institutional investor. an say, for a pension fund for a company that you work for. we have to have, i think, even greater oversight over these rating agencies that is in the -- than is in the bill. and i applaud what's in the bill.

Barbara Boxer

2:08:10 to 2:08:30( Edit History Discussion )

Barbara Boxer: i'm going to offer something that really holds these people accountable. again, if you read the book i'm reading, you realize how the people who work at these rating agencies are really -- were just doing the bidding of those that wanted to get a aaa rate.

Barbara Boxer

2:08:31 to 2:08:51( Edit History Discussion )

Barbara Boxer: so we end taxpayer bailouts in this bill. the boxer amendment's going to ensure that's so clearly stated. we put a cop on the beat for consumers. we bring closure to the formerly dark markets. we curve risky behavr on wall street because we require them to have more capital, less gambling.

Barbara Boxer

2:08:52 to 2:09:12( Edit History Discussion )

Barbara Boxer: we create an early warning system with a financial stability oversight council to make sure that we see trouble coming before it hits. and we protect against security market scams by going after these rating companies and saying, hey, you have a responsibility to be honest when

Barbara Boxer

2:09:13 to 2:09:33( Edit History Discussion )

Barbara Boxer: you rate an instrument. that it shouldn't be rated a certain way because the person who's a certain pay. that should be criminal. and i think it's going to be very clear bill -- and i'm a littl surprised it's taking so long. i say to chairman

Barbara Boxer

2:09:34 to 2:09:50( Edit History Discussion )

Barbara Boxer: little surprised it's takg so long to get a vote on the simplest amendment of them put that back up. what is the problem here? if people want to talk about making this stronger, let's talk. but don't hold this and i would ask my friend, do we have any agreement yet on voting

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