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Senate Proceeding 05-19-10 on May 19th, 2010 :: 1:49:05 to 1:56:25
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Maria Cantwell

1:49:02 to 1:49:22( Edit History Discussion )

Maria Cantwell: the full committee and the full senate so we can send it to president's desk. i thank you, mr. president, and i yield the floor. a senator: mr. president? the presiding officer: the setor from washington. ms. cantwell: mr. president, i would like to spend a few minutes talking about our previous vote this evening. and i know that many of my colleagues have worked hard on regulatory reform legislation.

Maria Cantwell

1:49:05 to 1:56:25( Edit History Discussion )
Speech By: Maria Cantwell

Maria Cantwell

1:49:23 to 1:49:45( Edit History Discussion )

Maria Cantwell: but i also think that it's important that we keep our eye on a very critical part of solving this problem. and i know that many of my colleagues, particularly on the banking committee, have had a long history with banking issues and may see things a little differently from the context of -- of the issues that they have been dealing with in the committee.

Maria Cantwell

1:49:46 to 1:50:09( Edit History Discussion )

Maria Cantwell: but it has been clear to me for a long time that the deregulation of the derivative market in 2000 led to a very unfortunate situation here. in that actually had transparent trades

Maria Cantwell

1:50:10 to 1:50:30( Edit History Discussion )

Maria Cantwell: and reporting to the had capital requirements, speculation limits, antifraud manipulation, trader licensing and registration and public exchange trading. now, the reason why i bring that up is, to me if the derivative cris brought on a basically world economic implosion, then

Maria Cantwell

1:50:31 to 1:50:52( Edit History Discussion )

Maria Cantwell: the principles of this underlying bill ought to adhere to the principles that have been laid out by the white house and others on what would help us fix this problem. we know that it was deregulated and we know these things were eliminated, but i take the treasury secretary at hisord when he wrote in earlier this

Maria Cantwell

1:50:53 to 1:51:13( Edit History Discussion )

Maria Cantwell: year -- quote -- "to contain systemic risk, security law should be amended to require clearing of all standard o.t.c. derivatives to regulated central clearing houses." the underlying billefore us, even though the ag committee corrected this, the language coming from the banking

Maria Cantwell

1:51:14 to 1:51:36( Edit History Discussion )

Maria Cantwell: committee basically created a loophole and basically said if you go to a clearing house and they don't want -- or say you don't need to be cleared, then don't worry about it, you don't have to be cleared. and it should be no surprise to anybody that the swaps dealers are the one who own the clearing house. so in that context, really, a fundamental tenet of derivative

Maria Cantwell

1:51:37 to 1:52:00( Edit History Discussion )

Maria Cantwell: regulatory reform, exchange trading, clearing, aggregate limits and transparency, one of those pillars is this bill. an happened because of this deregulation in 1999, maybe less than 100 -- $100 billion in the derivatives market.

Maria Cantwell

1:52:01 to 1:52:21( Edit History Discussion )

Maria Cantwell: and today -- today we're at a $600 trillion derivative market? $600 trillion. before deregulation, it was a very small amount of money, and now we have this incredible market. and the question is: whether we are going to regulate it to have the basic tenets of true competition, which means there is some oversight and some

Maria Cantwell

1:52:22 to 1:52:43( Edit History Discussion )

Maria Cantwell: transparency to make sure that there are not manipulative devices or contrivances in this legislation. so the good news i have -- is is that we have tried to say that these principle tenets of exchanged trading that

Maria Cantwell

1:52:44 to 1:53:04( Edit History Discussion )

Maria Cantwell: you have to have transparency, real-time monitoring should be there -- in there, but you have to have capital behind the trades. that means to have a clearing house. to have a clearing house, make sure that this type of activity is being cleared. so we had many times before the senate finance committee where the treasury secretary said i'm

Maria Cantwell

1:53:05 to 1:53:25( Edit History Discussion )

Maria Cantwell: fully supportive of moving this part of the market under central clearing houses and exchaes, we want to make sure that the -- that it moves on to exchanges as quickly as possible. that was in january. we had another time where we said the administration said we need to establish a comprehensive framework and

Maria Cantwell

1:53:26 to 1:53:47( Edit History Discussion )

Maria Cantwell: oversight protection of all of the derivatives marking moving standardized parts on to central clearingn central clearing houses. that was in march. so i don't know why we're still having this debate here about whether we going to have clearing of these derivatives. to me it's critical. i know there's other good parts of this legislation that people

Maria Cantwell

1:53:48 to 1:54:08( Edit History Discussion )

Maria Cantwell: care deeply about. but if you h this $600 trillion market and you are not truly going to have exchanged trading and clearing and aggregate position limits across all exchanges, you are not going to rein in the derivatives problem. you're not. and so i hope my colleagues will

Maria Cantwell

1:54:09 to 1:54:30( Edit History Discussion )

Maria Cantwell: take these words from the treasury secretary and from the white house and hopefully get a piece of legislation on this floor that will take care of this clearing house loophole. i know my colleagues think, you know, we can talk about, you know, building a dam against this wall of dark derivatives.

Maria Cantwell

1:54:31 to 1:54:51( Edit History Discussion )

Maria Cantwell: you know, but even something like hoover dam with all ofhe great concrete and all the great engineering and all the great things that make that structure work, still has a problem if somebody drills a hole in the bottom of it. over time, that's where all the water will flow, and that's where this derivative market is too.

Maria Cantwell

1:54:52 to 1:55:12( Edit History Discussion )

Maria Cantwell: if you don't have a regime of exchanged trading and clearing, you will have money seeping in to the continuation of a dark market. now, mr. president, yes, would i like other amendments? would i like a vote on an amendment by my colleague from arizona and i that is the reinstatement of glass-steagall? sure i would.

Maria Cantwell

1:55:13 to 1:55:34( Edit History Discussion )

Maria Cantwell: sure i would like to have many other amendments that i think my colleagues out here have been talking about. and hopefully they'll get votes on their whether it is merkley-levin or other piece of legislation that people have been offering. this issue is a fundamental one. we have exchange trading and clearingif we don't bring derivatives on to the same kind

Maria Cantwell

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

Maria Cantwell: of mechanisms we have for other products in theinancial markets. and if we don't do that, then i don't know what we're doing out here in the context of what brought us to this crisis. trading of dark market derivatives is what has brought this challenge to our.s. economy. let's bring some transparency

Maria Cantwell

1:55:56 to 1:56:21( Edit History Discussion )

Maria Cantwell: into that market. let's adhere these words and actually implement this so we can move on with t legislation. i thank the president and i yield the floor. a senator: notice the absence of a quorum. the presiding officer: the senator from alabama. mr. shelby: suggest the absence of a the presiding officer:

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