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Senate Proceeding 05-20-10 on May 20th, 2010 :: 7:11:55 to 7:23:20
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Ron Wyden

7:11:54 to 7:12:16( Edit History Discussion )

Ron Wyden: with a very crucial issue, major gap in our financial -- system of financial regulation, and it has been approved by senator shelby, the distinguished ranking republican, and also by senator dodd. in fact, i think it is fair to say that if we could get a vote

Ron Wyden

7:11:55 to 7:23:20( Edit History Discussion )
Speech By: Ron Wyden

Ron Wyden

7:12:17 to 7:12:38( Edit History Discussion )

Ron Wyden: on it tonight, mr. president, it would have enormous bipartisan support here in the unite states senate. i'm concerned that we won't get a vote on 3982, and as a result it is very likely that this bill will pass after all

Ron Wyden

7:12:39 to 7:12:59( Edit History Discussion )

Ron Wyden: that the country has seen with these large banks and these large financial institutions, it still will be possible for a bank to sell a product to an against that product, and it

Ron Wyden

7:13:00 to 7:13:21( Edit History Discussion )

Ron Wyden: will not be disclosed to the buyer. that's not r and what senator brown and i have been able to do, working with senator shelby's very capable staff and senator dodd's very capable staff, is we have been able to put together a

Ron Wyden

7:13:22 to 7:13:42( Edit History Discussion )

Ron Wyden: bipartisan amendment, the new senator from massachusetts and myself, that would close this loophole, that would ensure that there is at least simple, garden-variety, basic disclosure so that someone purchasing one of these financial products would know that the seller is

Ron Wyden

7:13:43 to 7:14:04( Edit History Discussion )

Ron Wyden: actually betting against the producthat is being sold to the consumer. now, mr. president, if i were to sell you a financial product and without your knowledge placed a separate bet that the product would decline in value, there's no question in my mind that the

Ron Wyden

7:14:05 to 7:14:26( Edit History Discussion )

Ron Wyden: distinguished presidentf the senate, the gentleman from illinois, would feel wronged by that transaction and everyone would say rightly so. if i stood to gain by convincing my clients to buy something that i knew would fail, they would have every reason to feel betrayed, to feel swindled, to

Ron Wyden

7:14:27 to 7:14:47( Edit History Discussion )

Ron Wyden: feel that they had been had. the fact is some of these major financial institutions invented and sold incredibly complicated financial products that they actually were hoping would fail, and they hid their positions behind a wall of omission and

Ron Wyden

7:14:48 to 7:15:10( Edit History Discussion )

Ron Wyden: complexity. it would surprise most americans to learn that somehow this kind of mischief united states, actually devious, business behavior was actually legal. the tragedy, of course, is it may blegal but it's certainly not right. at present, under current law and if

Ron Wyden

7:15:11 to 7:15:33( Edit History Discussion )

Ron Wyden: united states>? senate tonight in its current form, the major financial institutions, these wall street banks, would not be required to disclose an absolutely essential piece of information to a client. what, in my view, would be pa material conflict of interest.

Ron Wyden

7:15:34 to 7:15:56( Edit History Discussion )

Ron Wyden: from everything i've heard, the folks on wall street see these transactions in which a bank constructs and invests in a financial project that's designed to fail and then market the product to those with an interest in its success as an honest transaction. boy, i don't know of anybody at home in oregon who sees

Ron Wyden

7:15:57 to 7:16:20( Edit History Discussion )

Ron Wyden: something like this as honest or, in light of the recent hearings, fabulous, mr. president. so senator brown of massachusetts and i said, we're going to get together on a bipartisan basis and do something about it. and we put together an amendment, which i'd like to pints out to colagues tonight

Ron Wyden

7:16:21 to 7:16:41( Edit History Discussion )

Ron Wyden: is acceptable to senator shelby, is acceptable to chairman dodd. we're getting ready to vote, mr. president, on an amendment where you have bipartisan senate sponsorship, you have the very constructive and very valuable input of senator you have chairmanodd's

Ron Wyden

7:16:42 to 7:17:03( Edit History Discussion )

Ron Wyden: involvement. i think if we got it before vote, we would have an overwhelming bipartisan vote for a simple proposition that everybody can understand on street the streets of illinois or oregon or anywhere else. that is, that you ought to disclose it when in fact you're sell ago product that you're

Ron Wyden

7:17:04 to 7:17:25( Edit History Discussion )

Ron Wyden: betting against. the disclosure of conflicts amendment that i'm describin coauthored by senator brown, would direct the stability oversight council, which is estabshed in the underlying bl, to put forward rules requiring banks to disclose t clients

Ron Wyden

7:17:26 to 7:17:46( Edit History Discussion )

Ron Wyden: whether they have a material conflict of interest with spect to a product they are saling. if these firms are willing to create and sell these products, they ought to stand behind them and be honest with their clients. it's a very, very sho amendment, mr. president. on main streetll across the country, everybody would

Ron Wyden

7:17:47 to 7:18:08( Edit History Discussion )

Ron Wyden: understand what the bipartisan amendment that senator brown and i are offering. disclosure. we're not saying we're going to ban all these sales. i think colleagues have made a very compelling case, by the way, on going further than we dovment but certainly there ought to be disclosure.

Ron Wyden

7:18:09 to 7:18:29( Edit History Discussion )

Ron Wyden: we want to bring greater honesty and transparency to the relationship between buyers and sellers of complicated financial products. i think it's fair to say -- and i sure consider myself a market-oriented democrat; that's what i've been trying to do on health reform; that's what i tried to do -- continue to try to do in a bipartisan proposal with senator gregg to fix our

Ron Wyden

7:18:30 to 7:18:51( Edit History Discussion )

Ron Wyden: tax system. yocannot, colleagues, have functioning markets without honesty and transparency. withou it you end up with a game that's rigged against the typical american investor and taxpayer. i also want to express my appreciation to my new colleague from massachusetts for working

Ron Wyden

7:18:52 to 7:19:13( Edit History Discussion )

Ron Wyden: with me to advance this simple and straightforward proposition, and as i've stated, i'm very appreciated of chairman dodd and senator shelby and their counsel with respect to our bipartisan idea. i also want to make it clear that i don't see a problem with financial firms taking steps to

Ron Wyden

7:19:14 to 7:19:35( Edit History Discussion )

Ron Wyden: manage their risk. in fact, i encourage it. firms have done so in the ear part our economy might not have suffered from the meltdown that we have seen in financial services. my concern -- and i see the chairman of the full committee, senator dodd, here -- my concerns from the very

Ron Wyden

7:19:36 to 7:19:58( Edit History Discussion )

Ron Wyden: beginning, as you, chairman dodd, have done your very, very good work nature of these transactions, the fact that it is soard for the american people and the purchaser to really understand at these transactions are all about and certainly they ought

Ron Wyden

7:19:59 to 7:20:19( Edit History Discussion )

Ron Wyden: to be given information when the person selling it is taking a very different financial position than the person who's buying. and we ought to turn this curtain back on the current financial model and show it to the rest of the country. let's pull the curtain back on

Ron Wyden

7:20:20 to 7:20:40( Edit History Discussion )

Ron Wyden: the wall street business model and show it to the rest of the country. i've racked my brain to try and find another industry that would bet against their own product while selling it to the american people. does the person selling me a toy for the wyden twins stand to make additional money if the toy breaks?

Ron Wyden

7:20:41 to 7:21:02( Edit History Discussion )

Ron Wyden: obviously not. mr. president, i would ask unanimous consent for five additional minutes. mr. president, i would ask unanimous consent for three additional minutes. the presiding officer: without objection, so ordered. you still have 30 seconds left on your original time.

Ron Wyden

7:21:03 to 7:21:24( Edit History Discussion )

Ron Wyden: mr. wyden: all right. mr. president, it's obvious that in no other part of the american economy do we have people betting against their own product or selling it to -- while selli it to the american peop. you don't see apple creating the ipod in the hope that sales will be far below expectations and then going out and betting some of its own money on the failure.

Ron Wyden

7:21:25 to 7:21:46( Edit History Discussion )

Ron Wyden: no industry -- none -- thinks of betting against their own pro selling it to the american people. i don't even think that owners of race horses bet against their own ponies. so the kind of disclosure that senator brown and i have called for is fundamental for investment confidence in the

Ron Wyden

7:21:47 to 7:22:07( Edit History Discussion )

Ron Wyden: integrity of the u.s. financial system. if financial firms can market products, their betting will fail. without disclosing that to their clients, the conditions creating the current crisis will get

Ron Wyden

7:22:08 to 7:22:29( Edit History Discussion )

Ron Wyden: recreated. buyer beware will again becom taxpayer beware. that shouldn't be acceptable to any united states senator. i know that colleagues are waiting to speak. i repeat, amendment 3982 authored by senator brown and myself will fill a loophole in this bill that is going to be

Ron Wyden

7:22:30 to 7:22:51( Edit History Discussion )

Ron Wyden: passed tonight that, in my view, is a glaring omission that does not meet the test of the consumer protection, the american people deserve. this bill is clearing the senate tonight without even minimal consumer protection, without even disclosure of financial institutions betting against products they're gng to sell. that's not right.

Ron Wyden

7:22:52 to 7:23:13( Edit History Discussion )

Ron Wyden: i hope we'll return subject as soon as possible. i see chairman dodd on the floor. i want to thank him for the time that he has given me in the course of this legislation, commend him for all his efforts on this bill, and also thank senator shelby and his very able

Ron Wyden

7:23:14 to 7:23:20( Edit History Discussion )

Ron Wyden: staff director, we know from their support in putting together in amendment of i hope it will come out in conference because the american

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