Video archive of the US Congress

Senate Proceeding on May 19th, 2010 :: 0:15:55 to 0:22:45
Total video length: 4 hours 36 minutes Stream Tools: Stream Overview | Edit Time

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Judd Gregg

0:15:46 to 0:16:06( Edit History Discussion )

Judd Gregg: first half and the majority controlling the final half. the senator from new hampshire is recognized. mr. gregg: thank you, mr. president. first i want to congratulate the republican leader for a really superb statement on where we stand relative to this bill on regulatory reform.

Judd Gregg

0:15:55 to 0:22:45( Edit History Discussion )
Speech By: Judd Gregg

Judd Gregg

0:16:07 to 0:16:27( Edit History Discussion )

Judd Gregg: it truly is a bill that is misnamed. i mean, this bill should be the expansion of government for the purposes of making us more like europe act. and as a very practical matter, it does almost nothing about the re issues which have created the issue of financial instability in this country.

Judd Gregg

0:16:28 to 0:16:49( Edit History Discussion )

Judd Gregg: does nothing in the area of fannie mae and freddie mac, which is the realstate issue. it does virtually nothing in the area of making sure that we have a workable systemic risk situation structure so that we can address the issue of systemic risk, and instead of

Judd Gregg

0:16:50 to 0:17:10( Edit History Discussion )

Judd Gregg: which would actually put some vitality and usefulness into regulating the derivatives market, it actually steps back and creates a derivative regulation which all the major -- all the major regulators who we respect have said simply won't work.

Judd Gregg

0:17:11 to 0:17:31( Edit History Discussion )

Judd Gregg: and i want to talk about that a bit because i didn'think there was anything that you could do which would make this regulatory proposal on derivatives worse, but now we see an amendment coming from the chairman of the committee which i'm sure is well intentioned but which actually makes it worse. i almost -- the way the derivatives language of this

Judd Gregg

0:17:32 to 0:17:52( Edit History Discussion )

Judd Gregg: bill has been -- has evolved is that it just gets worse and worse and worse in an almost incomprehensible and irrational way that is rather surreal. it's almost as if we were at the mad hatter's tea party the way that this derivatives language

Judd Gregg

0:17:53 to 0:18:13( Edit History Discussion )

Judd Gregg: is evolving. we now have in the bill itself as proposed language which the chairman of the federal deposit insurance corporation, the federal -- the federal staff, chairman volcker and the o.c. have all said won't work.

Judd Gregg

0:18:14 to 0:18:35( Edit History Discussion )

Judd Gregg: in fact, not only have they said it won't work, they have that it will have a negative impact on the stability of the derivatives market. it will cause the market to move overseas and make america less competitive. it will cause a contraction in credit in this country, and it will hurt consumers and users of

Judd Gregg

0:18:36 to 0:18:58( Edit History Discussion )

Judd Gregg: derivatives across this nation. those are to some degree but essentially accurate of the major players who actually discipline and look at this market in defing the bill as it's presently before us, and now in some sort of

Judd Gregg

0:18:59 to 0:19:20( Edit History Discussion )

Judd Gregg: bizarre attempt as if the mad hatter had arred to this issue, we see an amendment from the chairman of the committee suggesting that we should put in place an even more convoluted system, an even more uncertainty of no decision

Judd Gregg

0:19:21 to 0:19:41( Edit History Discussion )

Judd Gregg: occurring for two years. the proposal says that we will have the stability council -- and this stability council is made up of a whole group of people. i think there are regulatorsn it. take a look at what's in the language of the bill now relative to taking swap desks out of financial institutions

Judd Gregg

0:19:42 to 0:20:02( Edit History Discussion )

Judd Gregg: and determine whether or not it makes sense -- whether or not that language makes sense. well, it doesn't make sense. we already know that because a group of those regulators have already said it doesn't make sense. so we're going to wait for two years to determine doesn't make sense whe we already know it doesn't make sense? and then they are going to make that recommendation to the

Judd Gregg

0:20:03 to 0:20:24( Edit History Discussion )

Judd Gregg: congress so the congress gets to legislate to correct what we already know is an error in the bill. and then to make this an even more byzantine exercise and a regulatory absurdity, the secretary of the treasury has the right to overraoul the congress or maybe act independently of the congress and take action pursuant to

Judd Gregg

0:20:25 to 0:20:46( Edit History Discussion )

Judd Gregg: whatever the stability council decided. and on top of all of this, convoluted exercise in chaos, the proposal actually undermines the lincoln proposal which is in the bill and makes the lincoln proposal even less workable by saying that the swap desk can't even be retained by affiliates

Judd Gregg

0:20:47 to 0:21:09( Edit History Discussion )

Judd Gregg: but must be totally separated, totally separated, which inevitably leads to swap desks which do not have capital adequacy or stability or the necessary strength to defend the derivatives actions which they are making mkets in. so you actually weaken and significantly reduce the stability of the market, making

Judd Gregg

0:21:10 to 0:21:30( Edit History Discussion )

Judd Gregg: it more risky, and at the same time the estimate is that you would contract credit in this country by close to three quarters of a trillion dollars. three quarters of a trillion dollars less credit. what does that mean? that means john and mary jones who are working on main street america, producing something that they are selling maybe to a

Judd Gregg

0:21:31 to 0:21:51( Edit History Discussion )

Judd Gregg: company that's a little bit larger, then selling that product overseas is probably not going to be able to get the credit they need order to produce the product, and so they will have to contract the size of their business and we will reduce the number of jobs in this cntry or we will certnly reduce the rate of job creation in this country. you know, this country's great

Judd Gregg

0:21:52 to 0:22:14( Edit History Discussion )

Judd Gregg: and unique advantage is that we are the best place in the world for an entrepreneur and a risk taker, somebody who actually is willing to go out there and do something to create jobs, the best place in the world for that individual to get capital and credit at a reasonable price and in a reasonably efficient way. this bill fundamentally

Judd Gregg

0:22:15 to 0:22:36( Edit History Discussion )

Judd Gregg: undermines that unique advantage which we have, and this language, this language compounds that event of underming that unique situation. it is, as i said, like participating in the mad hatter tea party to watch the way that this bill has evolved on the issue of derivatives regulation,

Judd Gregg

0:22:37 to 0:22:45( Edit History Discussion )

Judd Gregg: and the product -- well, i guess the queen of hearts would be proud of it, but i can tell you the effect on the american people, on commerce and on main street is going to be extraordinarily negative

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