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Senate Proceeding on May 6th, 2010 :: 2:38:55 to 2:48:20
Total video length: 9 hours 44 minutes Stream Tools: Stream Overview | Edit Time

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Bob Corker

2:38:36 to 2:38:56( Edit History Discussion )

Bob Corker: thank you, madam president. a senator: madam president? the presiding officer: the senator from tennessee. mr. corker: thank you, madam president. i'm here today to speak about the consumer protection title in the dodd bill, but i do want to say that while i disagree with my friends from connecticut and ohio in their approach, i certainly appreciate the way they've conducted themselves.

Bob Corker

2:38:55 to 2:48:20( Edit History Discussion )
Speech By: Bob Corker

Bob Corker

2:38:57 to 2:39:17( Edit History Discussion )

Bob Corker: and actually, i think the debate we've had on this floor over this bill, i will say to the senator fromonnecticut, has been of the highest level i can remember in a long time. and i want to thank him for setting that tone. i want to thank my caucus for i think offering nothing but constructive amendments. and people on both sides of the

Bob Corker

2:39:18 to 2:39:38( Edit History Discussion )

Bob Corker: aisle i think have tried to do that. i think, you know, it took awhile to get here but we're on the floor, and obviously there e a lot of improvements that people would like to make to this bill, but i think people are really focused on doing that. and, again, i want to thank you for setting that tone. at the same time, i d want to talk about the consumer protection title. that is one i would like to see vast improvement on.

Bob Corker

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

Bob Corker: i want to say that, look, i -- i'd like to ski consumer protection take place. protection take place. i think everybody in this body would like to see that happen. but i really believe that the consumer title that exists in this bill is one that really gets back to the essence of what the white house has said many, many times and that is never let a good crisis go to waste.

Bob Corker

2:40:00 to 2:40:22( Edit History Discussion )

Bob Corker: i think the consumer protection title in this bill is a vast, vast overreach, and it's my hope -- i know we have a vote maybe later today on a different title. if that's not successful, maybe there will be some surgical attempts to deal with some of the problems that exist in this title, but let me just speak to a few. number one, for the first time ever in our country's history,

Bob Corker

2:40:23 to 2:40:43( Edit History Discussion )

Bob Corker: we will be giving vast powers to an individual to be involved in almost every aspect of any type of financial transaction. i will say without a board, without any kind of check and balance. the dodd bil someone heading consumer fleaks has no

Bob Corker

2:40:44 to 2:41:04( Edit History Discussion )

Bob Corker: one -- no one -- that has a check and balance. this person's goin to be able to write rules and this person's going to be able to enforce those rules over our entire economy as it relates to financial transactions. i know there is a process by which if a rule is felt to be problematic after it's put in

Bob Corker

2:41:05 to 2:41:25( Edit History Discussion )

Bob Corker: place, not before, after a rule is put in place, there's the ability of a board to actually look at those rules. but the fact is, a standard is set so high, it would be very, very difficult to ever overturn the rules that would be put in place by this consumer protection agency. it has a vast budget.

Bob Corker

2:41:26 to 2:41:46( Edit History Discussion )

Bob Corker: it sets its own budget, i might add. again, congress has nothing whatsoever to do with that. some of the biggest problems with the consumer protection agency aren't just the fact that it has no check and balance, it writes rules, it enforces rules, it sets its own budget.

Bob Corker

2:41:47 to 2:42:08( Edit History Discussion )

Bob Corker: but on top of that, it overturns the way our national banking system has worked for years. congress years ago decided that we wanted to have a natiol banking system, that we wanted the ability of banks to operate across our country in a way that they had consistency, they knew under what rules they would be operating. what the dodd bill does is

Bob Corker

2:42:09 to 2:42:32( Edit History Discussion )

Bob Corker: overturn that, and what it does is say that there is no federal preemption anymore, that if states want to write -- change laws, write laws, you could have a bank that operates in 50 states that has 50 different s of regulation if this bill passes. that is highly problematic for banks that operate across our

Bob Corker

2:42:33 to 2:42:53( Edit History Discussion )

Bob Corker: country serving companies that operate across our country. you can imagine a bank trying to adhere to all of those state laws that might come up as a result of this bill. in addition, this bill then unleashes 50 attorney generals on these banks. that isomething, again, that is not the case today. this is a huge, huge overreach

Bob Corker

2:42:54 to 2:43:15( Edit History Discussion )

Bob Corker: and it's going to be highly, highly disruptive to our banking system. what it's going to do actually, because there is no federal preemption, what it's going to do now is actually encourage general assemblies, state legislators across this country to then become hyperactive. one of the things that state banks, not federal banks, not

Bob Corker

2:43:16 to 2:43:36( Edit History Discussion )

Bob Corker: national banks, one of the things that state banks have liked about our existing laws -- and by the way, state banks aren't these huge megabanks that my friends from delaware and ohio were just talking about. one of the things that they have liked about our existing banking laws is tt because of federal

Bob Corker

2:43:37 to 2:43:58( Edit History Discussion )

Bob Corker: preemption, general assemblies and state -- the presiding officer: may we have order in the chambers, please. the senator from tennessee. mr. corker: the chairman of the banking committee is creating disruptions. thank you. thank you, madam president, i appreciate that. [laughter] i actually wish i could hear what they were saying. [laughter]

Bob Corker

2:43:59 to 2:44:20( Edit History Discussion )

Bob Corker: can somebody in this body remind me as to where i was? okay. i think that state banks across the country have enjoyed -- again, these are the smaller institutions -- they have enjoyed the fact that there is something called federal preemption. because what that does -- what that has done is discouraged hyperactivity on behalf of state

Bob Corker

2:44:21 to 2:44:41( Edit History Discussion )

Bob Corker: legislators to create laws that might be populist in nature, that might be done to, in essence, ute ours financial use or financial system for other ends. one of the things that i think is most disruptive about this legislation is that if you can imagine this -- i think all of us realize that what led to this last crisis was the fact that we

Bob Corker

2:44:42 to 2:45:02( Edit History Discussion )

Bob Corker: had very poor underwriting on loans. i mean, that was the essence of this last crisis. it got spread around the world, the fact that we had incredibly poor underwriting. i hope to fix that, by the way, with an amendment in a few days. i hope it comes up and hope it passes. but what the dodd bill does is

Bob Corker

2:45:03 to 2:45:23( Edit History Discussion )

Bob Corker: give to a consumer protection agency loan underwriting, loan underwriting standards. now, if you can imagine that, i'd like for people in this body to think about that, but a consumer protection agency being involved in setting underwriting standards for loans has to undermine the safety and soundness of our financial

Bob Corker

2:45:24 to 2:45:46( Edit History Discussion )

Bob Corker: institutions. to me -- to me, that is a huge problem. so madam president, what i'd like to say is look, all of us would like to see consumer protection take place. all of us would like to see it, i hope, take place, though, in a way that is balanced so that the consumer protection laws that are put in place are put in

Bob Corker

2:45:47 to 2:46:07( Edit History Discussion )

Bob Corker: place in a way that is balanced against ensuring that our financial institutions across this country are safe and sound, that people know they can go to those institutions and are going to operate. i believe that the dodd bill as it relates to consumer protection is a vast overreach. know that people on the other side of the aisle have come u

Bob Corker

2:46:08 to 2:46:29( Edit History Discussion )

Bob Corker: to me and said look, this is problematic, and if you guys can help us figure out a way to peel this back, we would like to be able to do that. we're going to have a chan later today to vote on a consumer protection bill -- or amendment that has certainly brought this more in balance. there may be other ways of getting at it. i would urge the chairman to consider looking at ways to peel

Bob Corker

2:46:30 to 2:46:51( Edit History Discussion )

Bob Corker: this back because i do believe that -- that again we're going to wake up in this country -- if the dodd bill passes i its present form, we're going to wake up in 10 or 15 years and realize that consumer protection has gotten out of hand, that consumer protection has been used in many ways, used to create social justice, if you

Bob Corker

2:46:52 to 2:47:13( Edit History Discussion )

Bob Corker: will, on our financial system. and to me, madam president, that's something that's very, very dangerous. so i thank you for the time. i hope we have the -- let me just add one other thing. there is a new word in this title tt's undefined. it's a word that says they will also be looking to see if practices were abusive, but

Bob Corker

2:47:14 to 2:47:36( Edit History Discussion )

Bob Corker: nobody knows what that means. nobody knows what that means. and under this bill, by the way, if some were to come in after the fact and find that something -- quote -- was abusive, it would negate the financial transack that was entered into. so you could have a zealous consumer advocate come in and say i'm sorry, this loan that

Bob Corker

2:47:37 to 2:47:57( Edit History Discussion )

Bob Corker: was made between two parties was abusive and it would negate that transaction. so madam president, this bill is a huge overreach. it obviously goes right along the lines of the white house saying that you should -- you should never let a good crisis go to waste. this bill is going to be around for a long time if it passes,

Bob Corker

2:47:58 to 2:48:19( Edit History Discussion )

Bob Corker: and i hope that what we can do over the course of the next several days, during this time where we are having one of the most civil debates i think we have had in the senate since i have been here, a high-level civil debate. i hope we'll be able to put this back in balance. i know the madam president is from a state where people care a great dl about their financial institutions.

Bob Corker

2:48:20 to 2:48:20( Edit History Discussion )

Bob Corker: i hope to work with her and my

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