Video archive of the US Congress

Senate Proceeding 05-13-10 on May 13th, 2010 :: 0:33:35 to 0:38:40
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Jon Kyl

0:33:31 to 0:33:51( Edit History Discussion )

Jon Kyl: greatly expand the ability of the judicial system to deal with a large, highly complex financial company. i yield the floor. the presiding officer: the senator from arizona is recognized. mr. kyl: thank you, mr. president. i want to echo the sentiments of senator sessions and senator corker. they have given a great deal of thought to the problems here.

Jon Kyl

0:33:35 to 0:38:40( Edit History Discussion )
Speech By: Jon Kyl

Jon Kyl

0:33:52 to 0:34:12( Edit History Discussion )

Jon Kyl: these are not political issues that capture the imagination of either the newspaper or the american people. but they are really, really important, and they are both working to solve a difficult problem in a very reasonable way that recognizes the importance of the rule of law. one of the great distinguishing characteristics of the united

Jon Kyl

0:34:13 to 0:34:34( Edit History Discussion )

Jon Kyl: states versus some other countries, many other countries in the world is that we follow a rule of law. and it makes commercial dealings, and, therefore, expansion of our economy so much easier when everyone knows what the rules are and they can plan based upon those rules. one of the bodies of law that is most contributory to that is our bankruptcy code.

Jon Kyl

0:34:35 to 0:34:55( Edit History Discussion )

Jon Kyl: for over a couple of centuries we've had a process and a set of rules that govern what happens when businesses can't pay their debts and have to go out of business or be be reorganized. those rules, in effect, set the rule of the road, the things that people can count on both at the time that a business gets into trouble, but also far

Jon Kyl

0:34:56 to 0:35:16( Edit History Discussion )

Jon Kyl: before that when people are making decisions on whether to lend to or invest in a business. they know, for example, if they're going to be a secured creditor of the business, that in the event something goes wrong, they'll be quite high on the list of businesses that get paid. they're an unsecured creditor, they're going to be lower on that list.

Jon Kyl

0:35:17 to 0:35:37( Edit History Discussion )

Jon Kyl: they'll probably get more for their lending lower on the list. people can calibrate the kind of equity investment or lending that they want to engage in based upon what they know the rules will be in the event something goes wrong. if you do away with that and just say in the event things go wrong, a government bureaucracy -- and i don't use

Jon Kyl

0:35:38 to 0:35:58( Edit History Discussion )

Jon Kyl: that word pejoratively, but a group of government employees in an agency are going to decide that something needs to be done and decide what that is. and it's basically unconstrained by any set of rules and practices such as the bankruptcy code has provided. that'scary to folks. it's going to mean that we'll have less lending and capital

Jon Kyl

0:35:59 to 0:36:19( Edit History Discussion )

Jon Kyl: formation for businesses because they're going to be uncertain about the rules of the road. and, secondly, it's going to create potential for unfairness and, frankly, poor decisions if companies do have to get unwound. so what we're giving up not adopting an amendment like the sessions amendment is

Jon Kyl

0:36:20 to 0:36:41( Edit History Discussion )

Jon Kyl: certainty, predictability and really decades of understanding of what the law is in the event something like this occurs. what senator corker has said is also true that these financial institutions may present some very unique circu some of them may be so large and so potentially advocating of

Jon Kyl

0:36:42 to 0:37:03( Edit History Discussion )

Jon Kyl: other institution -- potentially effecting of other institutions that it may be the relatively slow pace of bankruptcy, that we may need somethingore quickly to intervene and ensure that whatever happens with this particular business, it doesn't adversely affect others or that there may be other reasons to have a more immediate infusion

Jon Kyl

0:37:04 to 0:37:24( Edit History Discussion )

Jon Kyl: of some intervention; i'll just put it that way. it was for that reason that all of us supported the dodd-shelby kpwroeupls. our -- compromise. our view was it's better than the underlying bill. i don't think it satisfies the three of us that it went far enough in creating these rules of predictability. the sessions amendment, as has

Jon Kyl

0:37:25 to 0:37:45( Edit History Discussion )

Jon Kyl: been described, does that. i think senator corker h it exactly right. we're under no illusion that this is going to replace the dodd-shelby compromise. and in that respect, we have to just hope that in the further process of legislating on this bill that that compromise can be informed by additional debate and discussion and maybe

Jon Kyl

0:37:46 to 0:38:06( Edit History Discussion )

Jon Kyl: improved. and by supporting bankruptcy-related amendment of senator sessions, what we're trying to do is to send the message that we compliment dodd and shelby for -- senators dodd and shelby for what they did, but a little more dose of the predictability and certainty and judicial process of bankruptcy would be very welcomed in this

Jon Kyl

0:38:07 to 0:38:29( Edit History Discussion )

Jon Kyl: process. and, therefore, to the extent that we can have a good vote o this amendment, perhaps they and others will look to other ways in which they can continue to modify this language for the very best result that we can achieve. this is a very importa it deserves our very best attention. and i just really want to compliment again both senator

Jon Kyl

0:38:30 to 0:38:42( Edit History Discussion )

Jon Kyl: sessions and senator corker to the -- thoughtful members of this body for the way they approached this ise without any political consideration, simply to make

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