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Senate Proceeding on Jun 8th, 2011 :: 3:15:05 to 3:27:45
Total video length: 8 hours 50 minutes Stream Tools: Stream Overview | Edit Time

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Bob Corker

3:14:56 to 3:15:16( Edit History Discussion )

Bob Corker: that will take place at 2:00 today. i know there has been a lot of discussions about the durbin amendment which occurred during dodd-frank and where we are today. i jus -- i just want to spend a moment clarifying the fact that the tester-corker amendment does not do away with the durbin amendment of. the durbin amendment will still

Bob Corker

3:15:05 to 3:27:45( Edit History Discussion )
Speech By: Bob Corker

Bob Corker

3:15:17 to 3:15:39( Edit History Discussion )

Bob Corker: be the law of the land. and a huge victory, i think, during the dodd-frank regulation, something i didn't support, but a huge victory for the retail industry in that for the first time in the history of our country, per the law that was passed, debit cards are going to be a regulated entity. and there's nothing about the tester-corker amendment that in

Bob Corker

3:15:40 to 3:16:00( Edit History Discussion )

Bob Corker: any way changes the fact that it's going to be a regulated industry. that is going to occur. what tester-coxer does -- what tester-corker does is to try to bring back into balance how we look at this particular transaction. you know, mr. president, we're going through this period of

Bob Corker

3:16:01 to 3:16:21( Edit History Discussion )

Bob Corker: time in our country's history where, you know, people have been very upset with financial institutions at many, many levels. and it's almost as if the way the durbin language now is, it's an attempt to basically punish, be punitive to community banks,

Bob Corker

3:16:22 to 3:16:43( Edit History Discussion )

Bob Corker: rural banks, credit unions, megabanks all across our country for things that happened in the past. and there's no question that many financial institutions made mistakes. there's no question that government made mistakes. there's no question that congress has made mistakes. there's no question that consumers across our country, in many cases, have made a lot of misstaifntle but we're at place

Bob Corker

3:16:44 to 3:17:05( Edit History Discussion )

Bob Corker: in our countr evolution where what we need to do is reinforce economic growth in this country, and make sure that regulation has the right balance. and i feel like that push-back against corker-tester, corker-tester is really an attempt to try to punish, stick

Bob Corker

3:17:06 to 3:17:26( Edit History Discussion )

Bob Corker: a stick in the eye of, do whatever, to really get back at the financial industry. and, again, i think there's been a tremendous win by the proponents. you have a debit card industry that's going to be regulated. the question is what is the fair way to regulate them, as it relates -- what are the

Bob Corker

3:17:27 to 3:17:47( Edit History Discussion )

Bob Corker: allocated costs? so the federal reserve has told us that the language that exists in the durbin amendment, which really only allows incremental costs, sin aproavment they're very uncomfortable with it. they're uncomfortable what that is going to do to community banks, rural banks, smaller banks all across our cufnlt the

Bob Corker

3:17:48 to 3:18:10( Edit History Discussion )

Bob Corker: fdic has said they're really concerned about the language because the cost of the transaction is not going to be appropriately assessed. they've shared that in ub testimony. the o.c.c. has done exactly the same thing. state bank commissionerrers across this country have done the same thing. and i know we have the -- the presiding officer is from

Bob Corker

3:18:11 to 3:18:32( Edit History Discussion )

Bob Corker: minnesota fnlt i know he flies here to washington probably each week. the way the language is now written, it would be as if the presiding officer got on a flight from minneapolis to fly to washington, the seats were mostly full, but a standby passengers-on-got on the plane at the last minute, sat down in

Bob Corker

3:18:33 to 3:18:54( Edit History Discussion )

Bob Corker: an empty seat, and the airline was forced to charge everybody that flew on their airline only the cost of what that one additional passenger -- half the trip was going to take place -- what that one additional passenger cost the airline to travel from minneapolis to washington. obviously that cost is almost negligible because, you know,

Bob Corker

3:18:55 to 3:19:16( Edit History Discussion )

Bob Corker: all the reservations, the flight has been fueled, the flight attendants are there the pilots are there, all of those costs are already dl. well, that's the way the durbin amendment now reads. that's the way the law now is, that the federal reserve, the federal reserve can only take into account, as they regulate

Bob Corker

3:19:17 to 3:19:38( Edit History Discussion )

Bob Corker: the debit card industry, what that incremental cost is, what adding one transaction to the system would cost. everybody knows -- i mean, the retailers who are opposing our amendment, know that there is no way that any of them could surviv the retail industry if their costs were only

Bob Corker

3:19:39 to 3:19:59( Edit History Discussion )

Bob Corker: allocated to them on an incremental basis. so everybody knows that this is flawed. i don't think there's any debate about the fact that the way we're looking at regulating the debit card industry is flawed. but what people are doing, it's almost sort of a venezuelan approach, you know. well, we're angry at these folks

Bob Corker

3:20:00 to 3:20:20( Edit History Discussion )

Bob Corker: and so even though we know that assessing the cost of dibbed -- of debit cards and only allowing incremental covelets, even though we know that's inappropriate and even though we know that no business can survive, we're still going to do this because the banks did this

Bob Corker

3:20:21 to 3:20:41( Edit History Discussion )

Bob Corker: or the banks were involved in mortgages. and it is a policy that just doesn't make sense. it's not an appropriate way, in my humble opinion, for a body like ours that hopefully stands above trying to punish people but is here to put policies in place that will make our country

Bob Corker

3:20:42 to 3:21:03( Edit History Discussion )

Bob Corker: stronger. so what we've add -- and i see the senator from north carolina, who's been highly involved in reaching the place where we are -- what we've said is, look, durbin should stand. durbin should stand as it is. we should regulate the debit industry. okay, we understand that's going to happen.

Bob Corker

3:21:04 to 3:21:24( Edit History Discussion )

Bob Corker: but let's make sure that when the regulators look at regulating the debit card industry, they're able to also look at the fixed costs, those costs that should be appropriately considered in setting the rates. my guess is the presiding officer has some regulatory boards in the state of minnesota. maybe they regulate descry

Bob Corker

3:21:25 to 3:21:47( Edit History Discussion )

Bob Corker: electricity, maybe that he regulate water maybe they regulate natural gas. i don't know. we have similar types of things in tennessee. and when they look at regulating those industries, they take into account those costs that are appropriate and n. regulating the industry. i haven't heard anybody debate

Bob Corker

3:21:48 to 3:22:09( Edit History Discussion )

Bob Corker: negatively that it's inappropriate -- that it's inappropriate to allocate costs the way senator hagan, the way myself, the way others have talked about doing that. it's ball about the emotion -- it's all been about the emotion of trying to do damage to financial institutions because

Bob Corker

3:22:10 to 3:22:31( Edit History Discussion )

Bob Corker: people are upset with them. there's been an emotional argument about saying, you know, these institutions did some really bad things, and, therefore, we want to punish them even though we know the cost allocation is inappropriate. we all know what's going to happen is not only are we going

Bob Corker

3:22:32 to 3:22:53( Edit History Discussion )

Bob Corker: to do damage to our community banks, our credit unions, our rural banks all across this country, but in the process of allowing the rules to stand as they are and the direction that we give to the fed to stand as it is, what's going to happen is we're going to have constriction of credit. i mean, right now in our

Bob Corker

3:22:54 to 3:23:15( Edit History Discussion )

Bob Corker: country, we are watching a pause, a pause taking place in economic growth, and one of the driving factors, there's no question, is our financial institutions are out there, they are seeing in every way their ability to lend to be clamped down, capital requirements are changing. some of these things were good things that needed to happen, but this is just one more of

Bob Corker

3:23:16 to 3:23:36( Edit History Discussion )

Bob Corker: those -- and so the senate, if the senate chooses to defeat tester-corker today, hagan, crapo, lots of people have been involved in making this, so that we get back in the middle of the road, in a when we regulate dribt cards we -- when we regulate debit cards, we do so

Bob Corker

3:23:37 to 3:23:58( Edit History Discussion )

Bob Corker: by truly regulating the cost of the card itself. this is just one more blow against our economy as we continue to constrict lending in our financial institutions to communities and citizens all across our country. you know, shb a chawrpt yesterday -- somebody had a chart up yesterday looking at canada and looking at europe. and one little detail -- and

Bob Corker

3:23:59 to 3:24:20( Edit History Discussion )

Bob Corker: they were talking about the lack of debit charges or in some cases the fees were less than they are in our country -- one of the details they left out is they don't have community banks. i mean, in canada you've got a handful of highly regulated, almost utilities that are banks -- under five.

Bob Corker

3:24:21 to 3:24:42( Edit History Discussion )

Bob Corker: that's a very different scenario than we have in this country where we have community banks all across the country that are out there lending to innovators. banks all across this country lending to innovators, very, very different environment. they're able in canada to actually generate fees in other ways, and of course they don't

Bob Corker

3:24:43 to 3:25:03( Edit History Discussion )

Bob Corker: have the community banking system and credit union system that we have across our country. so to me, what i hope will happen at 2:00 -- and i know this has been a contentious issue, a vote that candidly a lot of people would just assume go away because people have friends that are retailers, people have friends that are

Bob Corker

3:25:04 to 3:25:24( Edit History Discussion )

Bob Corker: bankers, and they hate -- quote -- "to choose between their friends" -- but i hope what'll happen at 2:00 is when people come down to the twol vote, they'll look at the policy, and they' you are right. the financial industry has been in some excesses. we regulated the financial

Bob Corker

3:25:25 to 3:25:45( Edit History Discussion )

Bob Corker: industry heavily two years ago when dodd-frank was passed. if we're going to set rates on debit card, let's aleast allow the fed to consider all of the appropriate costs. look, if a bank is offering bonus awards for people that shouldn't included. that shouldn't be included. we understand that.

Bob Corker

3:25:46 to 3:26:08( Edit History Discussion )

Bob Corker: but the fed ought to be able to look at all of those costs that are fair, and i hope that members of this body will rise above the emotional aspect of this vote. i hope they'll rise above the rhetoric. this is anything but another bank bailout. what this is is allowing the fed

Bob Corker

3:26:09 to 3:26:29( Edit History Discussion )

Bob Corker: to rightfully, as they have requested of the united states senate, to rightfully be able to look at all of the appropriate costs that go into a debit transaction. and, again, tester-corker passes, if tester-corker-hagan-crapo passes, it is a tremendous win

Bob Corker

3:26:30 to 3:26:51( Edit History Discussion )

Bob Corker: for the retailers. they have a regulated debit card interest. something they've wanted for a long tiesm but it also strikes the balance of appropriateness, as it relates to us, as we look to move ahead with appropriate -- with appropriate -- regulation of our financial industry. so i hope that -- i know we're

Bob Corker

3:26:52 to 3:27:14( Edit History Discussion )

Bob Corker: on the cusp. i know this is going to be a very, very close vote. i do hope that our colleagues will look at the policy. if they haven't spent time yet with their staffers, look at the language. durbin still stands, if tester-corker passes. durbin stands.

Bob Corker

3:27:15 to 3:27:37( Edit History Discussion )

Bob Corker: all it does is allow the regulators to appropriately, just as happens in every state around this country that regulates industries, allows the fed to appropriately look at those costs that ought to be associated with the debit card. mr. president, i thank you. i urge my colleagues to vote in support of tester-corker.

Bob Corker

3:27:38 to 3:27:45( Edit History Discussion )

Bob Corker: i thank you for the yield the floor. mrs. hagan: mr. president? the presiding officer: the senator from north carolina. mrs. hagan: thank you, mr. president. i, too, come to the floor in

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