Video archive of the US Congress

Senate Proceeding on May 18th, 2010 :: 1:08:55 to 1:15:50
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Judd Gregg

1:08:35 to 1:08:55( Edit History Discussion )

Judd Gregg: under the previous order the senate will consider s. 2317. the clerk: s. 3217, a bill to promote the financial stability of the united states by approving accountability and transparency in the financial system and so forth and for other purposes. the presiding officer: under the previous order there will be 30 minutes of debate equally divide

Judd Gregg

1:08:55 to 1:15:50( Edit History Discussion )
Speech By: Judd Gregg

Judd Gregg

1:08:56 to 1:09:16( Edit History Discussion )

Judd Gregg: and controlled between the senator from connecticut, mr. dodd, and the senator from new hampshire, mr. gregg, prior to a votin relation to amendment s. 3451. mr. gregg: thank you, mr. president, i did a sort of trailer version of the bill a

Judd Gregg

1:09:17 to 1:09:38( Edit History Discussion )

Judd Gregg: few minutes ago in morning business. the presiding officer: call up his amendment. mr. gregg: mr. president, i would call up amendment 4051 -- i pending amendment be set aside. the presiding officer: the clerk will report. the clerk: the senator from new hamp the presiding officer: the

Judd Gregg

1:09:39 to 1:10:00( Edit History Discussion )

Judd Gregg: senator from new hampshire is recognized. mr. gregg: this amendment is pretty simple. it says that american taxpayers should not be on the hook for states. it says specifically that federal funds cannot be used to purchase obligations of states or local communities that are in default.

Judd Gregg

1:10:01 to 1:10:21( Edit History Discussion )

Judd Gregg: -- default or about to default unless those states have gone through some sort of crisis like the katrina situation. but the default that the state or community is about to exrience is a function of their failure to discipline their fiscal house, then we're not going to ask the taxpayers across this country to support

Judd Gregg

1:10:22 to 1:10:42( Edit History Discussion )

Judd Gregg: that error in judgment and that misguided miss kal policy of that -- policy of that government or state. if we don't set that in place, basically we're going to have a situation where the american people will become the guarantor

Judd Gregg

1:10:43 to 1:11:04( Edit History Discussion )

Judd Gregg: of inappropriate action across this country by legislators and city governments and you'll have this -- excuse me -- untoward situation -- where you are base -- you will basically create a -- an atmosphere where

Judd Gregg

1:11:05 to 1:11:26( Edit History Discussion )

Judd Gregg: there is an incentive for state governments and local communities to not be fiscally responsible. it's this moral hazard issue. we debated it at considerable length when we discussed too big to fail in the banking system and this bill has a lot of issues as far as i'm concerned. but one of the things that it handles reasonably well is too big to fail.

Judd Gregg

1:11:27 to 1:11:47( Edit History Discussion )

Judd Gregg: it basically handles that issue pretty well. we have designed language in this bill between senator dodd and senator shelby which essentially says no longer will the american taxpayer be presumed or any way expected or have any obligation at all to support a financial institution which has gotten too large and has taken on too many risky

Judd Gregg

1:11:48 to 1:12:09( Edit History Discussion )

Judd Gregg: decisions and is, therefore, in fiscal distress, that institution will fail. the stockholders will be wiped out, unsecured bondholders will be wiped out and the american taxpayer will not come in and defend that situation. too big to fail ends with this bill, hopefully. but it should apply, also, to states and local governments. we should not create the moral

Judd Gregg

1:12:10 to 1:12:30( Edit History Discussion )

Judd Gregg: hazard of having taxpayers in new hampshire or taxpayers in nebraska or taxpayers in new mexico responsible for profit activity in other states. and, in fact, many of states, of course, have balanced budget requirements. in fact, in nebraska they don't

Judd Gregg

1:12:31 to 1:12:51( Edit History Discussion )

Judd Gregg: even allow any debt, period. they have a constitutional amendment that says there can be no debt. so they are extremely disciplined, these states, in the way they handle their budgets. and the taxpayers and the citizens of those states expect their leaders to be disciplined. so how can we ask those

Judd Gregg

1:12:52 to 1:13:12( Edit History Discussion )

Judd Gregg: taxpayers and those citizens in those states who have been disciplined, who have elected people who are willing to live within their means as they govern, whether it's at the community level or at the state level, how can we ask those citizens across the country to go in and bailout other states and other communities who have been totally undisciplined in managing it their fiscal house

Judd Gregg

1:13:13 to 1:13:33( Edit History Discussion )

Judd Gregg: and put themselves in huge distress and have defaulted on their debt or about to default on their debt? this isn't acceptable. if we're going to have a bill which addresses the issue of too big to fail, it should apply to this type of a situation. and so i've recovered this amendment.

Judd Gregg

1:13:34 to 1:13:56( Edit History Discussion )

Judd Gregg: very simple, as i said, it prohibits federal funds from being used to purchase or guantee obligation of states an local communities that are in default or about to go into default. pretty strict clear. reasons of its o making has

Judd Gregg

1:13:57 to 1:14:18( Edit History Discussion )

Judd Gregg: created a fiscal mess of inordinate proportions and can't pay i debts, it can't come to washington and say, we want you to bail us out. that's not right. it's not proivment and so this bill bans that -- appropriate. and so of event from occuring. why do need to do this? it's pretty obvious. there are a couple of states in

Judd Gregg

1:14:19 to 1:14:41( Edit History Discussion )

Judd Gregg: this country who have been irresponsible in their spending and who have not disciplined themselves and who are expecting everyone else in this country to bail them out. i sure don't want to be a part of that. and i don't want the taxpayers in new hampshire to be a part of that. and it's not fair that they should be a part of that. thosere to figure out how to straighten out their own fiscal house and they should have to do that

Judd Gregg

1:14:42 to 1:15:03( Edit History Discussion )

Judd Gregg: with the terms of their own spending streams and own revenue streams and they shouldn't expect the federal government to come in and take them out of their distress, -- distress, which was self-imposed and self-created. there is an exception in this bill, this language so that if the state is put in severe distress, because

Judd Gregg

1:15:04 to 1:15:25( Edit History Discussion )

Judd Gregg: of an emergency situation such as a katrina-type situation, this would not apply. obviously, it shouldn't apply then. but if it's a self-imposed event, certainly from legislatures and city councils spending a lot more money than they have, than they can take in

Judd Gregg

1:15:26 to 1:15:48( Edit History Discussion )

Judd Gregg: under their structure, then they should have to figure out how to pay for it and deal with it themselves and they shouldn't pass that problem on to the american people by financing it through here, through washington. so it's consistent with the theme that there should be nothing too big to fail in this country, including state governments or local governments or financial institutions, and i would hope that my colleagues

Judd Gregg

1:15:49 to 1:15:50( Edit History Discussion )

Judd Gregg: would support this amendment. at this point, i would reserve

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