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Senate Proceeding 06-07-11 on Jun 7th, 2011 :: 1:15:05 to 1:24:15
Total video length: 3 hours 39 minutes Stream Tools: Stream Overview | Edit Time

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Bob Corker

1:14:58 to 1:15:19( Edit History Discussion )

Bob Corker: an institution is making some money, let's take it from them and give it to others in the name of fairness. mr. president, i think everybody knows that certainly there are a lot of tremendous numbers of small institutions across america that are very concerned about the durbin amendment and its effects. and a number of small retailers.

Bob Corker

1:15:05 to 1:24:15( Edit History Discussion )
Speech By: Bob Corker

Bob Corker

1:15:20 to 1:15:40( Edit History Discussion )

Bob Corker: but there is no question, let's face it. the big boxes, my friends, wal-mart, home depot, target, they have funded this effort as he mentioned on k street with the lobbyists, and there is no question that a lot of the larger financial institutions have funded the effort on the other side. there is no question. but the people that i think

Bob Corker

1:15:41 to 1:16:01( Edit History Discussion )

Bob Corker: senator tester and myself and you and others listen to are those folks that come in from our home states, the small community banks and credit unions around our country that are very concerned about this. let me talk about a couple of things. number one, the senator from illinois talked about the timing. well, we have been trying to

Bob Corker

1:16:02 to 1:16:23( Edit History Discussion )

Bob Corker: find some vehicle to attach this amendment to for some time. the fact is the senate hasn't done any business this year. i mean, we come in from time to time and vote on a noncontroversial judge, but we have been trying to find some vehicle to attach this to. we have been trying to do that for months. secondly, the fed, the federal reserve, which has been asked to

Bob Corker

1:16:24 to 1:16:45( Edit History Discussion )

Bob Corker: put forth this rule, they are the ones that have been saying what you have asked us to do is not appropriate. i mean, they have testified publicly saying that the durbin amendment is inappropriate. let me describe what he just said about reasonable and proportional. that means that, mr. president, if you went out and built a

Bob Corker

1:16:46 to 1:17:07( Edit History Discussion )

Bob Corker: debit system, you invested in all the technology, the computers, the marketing, the fraud prevention, all the things that went into that, what the fed can look at now in setting the price is after you have set all that up processing millions of transactions a year, if you send

Bob Corker

1:17:08 to 1:17:29( Edit History Discussion )

Bob Corker: one more transaction across the wire, what does that cost you after you invest, that's what he is saying about reasonable proportional. there is no way that any business possibly operate under that scenario. again, retailer after retailer after retailer has been in my office and said we know the criteria that's been laid

Bob Corker

1:17:30 to 1:17:50( Edit History Discussion )

Bob Corker: the durbin amendment is we couldn't function, we couldn't function with that criteria, but we don't know of any other way of solving this problem. we hate to have the fed involved in price setting, so all of us set out to try -- many of us set out to try to solve that. and what we have come up with

Bob Corker

1:17:51 to 1:18:12( Edit History Discussion )

Bob Corker: is, in fact, a compromise, and what it says is okay, we -- we agree the debit card industry should be regulated. we agree that retailers are having difficulty in negotiating with visa and others. let's get the fed to set the prices based on the cost of the transaction, which do include, i

Bob Corker

1:18:13 to 1:18:34( Edit History Discussion )

Bob Corker: hate to say, some fixed costs in technology and other kinds of things, fraud prevention. the fed has asked us to do that. okay. it's not as if we're usurping the fed coming in and making a rule. they have testified publicly that the way the durbin amendment is written is going to be terrible for community banks and rural banks. i mean, i think we all know the

Bob Corker

1:18:35 to 1:18:55( Edit History Discussion )

Bob Corker: senator from illinois likes to use these larger institutions, but all of us know the big guys just get bigger, just get bigger when we do these kind of things and create hardships for the smaller institutions. and the fact that some two-tiered system was set up won't work. i mean, the fdic has come in and

Bob Corker

1:18:56 to 1:19:16( Edit History Discussion )

Bob Corker: said look, you cannot make it work where the small banks and small credit unions are held harmless. it won't work. the o.c.c. has come in and said it won't work. market forces will take over. this will not work. they're going to get crushed. the state bank commissioners have come in and said the durbin

Bob Corker

1:19:17 to 1:19:40( Edit History Discussion )

Bob Corker: amendment as written is going to be disastrous to consumers. it's going to be disastrous to the smaller institutions with which we all deal. so look, i'm not trying to carry water for either side. i'm trying to come up with a solution that's fair. i have worked with senator tester, senator crapo, senator

Bob Corker

1:19:41 to 1:20:03( Edit History Discussion )

Bob Corker: hagan, senator bennet, senator brown, numbers of people to try to come up with language that hits that sweet spot. and the senator from illinois is right. we probably never developed a perfect law, but i think we have a responsibility when we know that something is about to happen that won't work, that is

Bob Corker

1:20:04 to 1:20:24( Edit History Discussion )

Bob Corker: going to be devastateing. i think we have an obligation to try to come up with something that meets the test of trying to be fair to both sides, and i think that's what this amendment does. you know, the senator talked about all kinds of things being added in. the banks can't just add it in. the feds regulate them.

Bob Corker

1:20:25 to 1:20:47( Edit History Discussion )

Bob Corker: the fed will decide what is reasonable and proportional. the fed will decide, but they will use all of the costs that it takes to actually do those operations and the costs which the durbin amendment did not do. so look, i think that this amendment meets the test. i know there are numbers of

Bob Corker

1:20:48 to 1:21:08( Edit History Discussion )

Bob Corker: people that voted for the durbin amendment in the past that have co-authored this. they co-authored this because they realize that the durbin amendment was far too narrow, that the durbin amendment didn't take into account anything but again the cost of adding one

Bob Corker

1:21:09 to 1:21:30( Edit History Discussion )

Bob Corker: transaction on top of an infrastructure that you had already built. there is no business that could operate that way. the presiding officer used to be part of a -- a weekly broadcast, and if all you charged was the incremental cost of that going out and being broadcast to other television stations around the country and that was the only cost you could get, there's no way that our presiding officer

Bob Corker

1:21:31 to 1:21:52( Edit History Discussion )

Bob Corker: would have been known to america the way that he's known because there is no way that operation could have succeeded. this is a very commonsense solution, and those people who supported the durbin amendment during this debate, even though there was never a hearing heard -- a pretty major issue to never have a hearing in the banking committee, but to pass

Bob Corker

1:21:53 to 1:22:13( Edit History Discussion )

Bob Corker: at the height of the time when many people around this country were upset, rightfully so, with some of the larger players in our financial system, people have woken up, they have realized that this is a really bad piece of policy, but if we tweak it, then the retailers still end up with a regulated

Bob Corker

1:22:14 to 1:22:34( Edit History Discussion )

Bob Corker: market, whether or not overcharged, and yet the institutions that are providing -- this is a service, by the way, or people wouldn't use it. the retailers like getting their money instantly. people like being able to carry around plastic to pay their bills instead of cash, but what this amendment does is put it in the middle of the road where it's fair to the retailers, it's fair to the institutions that

Bob Corker

1:22:35 to 1:22:56( Edit History Discussion )

Bob Corker: are involved, and most of you will it protects consumers around this country. i mean, i think you have seen the letters that have been sent out as to what's going to happen to consumers if the durbin amendment goes into effect as it is now laid out. so the senator does a really great job, i know, in taking a

Bob Corker

1:22:57 to 1:23:17( Edit History Discussion )

Bob Corker: few of these institutions that -- that no doubt behave badly and causing the whole thrust of this to be about sticking a stick in the eye of these institutions that have paid bonuses and made bad decisions, but the fact is that this is a bad policy as it exists. the tester-corker amendment

Bob Corker

1:23:18 to 1:23:39( Edit History Discussion )

Bob Corker: along with many other cosponsors is something to try to bring that in the middle of the road. and i just ask that each senator, please, just spend ten minutes with your staffers to understand what the third round of revisions does. look at what a commonsense solution that has been put forth by the best of this body happening. that is, people working together

Bob Corker

1:23:40 to 1:24:01( Edit History Discussion )

Bob Corker: to try to get there. and hopefully we can end up with a piece of legislation that we're all proud of. we can continue to have a financial system that's strong, that includes the many small players that we depend upon in small communities across this country, and we can also continue to have a vibrant retail industry that really counts on the additional sales

Bob Corker

1:24:02 to 1:24:15( Edit History Discussion )

Bob Corker: that they get from having access to these types of transactions. with that, mr. president, i thank you and i yield the a senator: mr. president? the presiding officer: the senator from california. mrs. box just wanted to make sure the

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