Senate Proceeding on Sep 26th, 2008 :: 2:58:15 to 3:05:57
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2:57:54 to 2:58:15( Edit History Discussion )

Patrick Leahy: critical that accurate assessments of the value of these ill liquid mortgage-related assets being reformed to limit the taxpayers' exposure to risk and structure purchases to ensure the greatest possible

2:58:15 to 2:58:33( Edit History Discussion )

Jim Bunning: return on investment. taxpayer money must be shielded at all cost from risk to the greatest extent possible. now, reciprocity -- not a bad concept if you can carry it out. the government must not simply

2:58:15 to 3:05:57( Edit History Discussion )
Speech By: Jim Bunning

2:58:33 to 2:58:52( Edit History Discussion )

Jim Bunning: be a repository for risky investments that have gone bad. an economic rescue effort that serves taxpayers well must allow them to benefit from the potential profit of rescued entities. so a model -- and

2:58:52 to 2:59:11( Edit History Discussion )

Jim Bunning: it may well be in the new principles -- must be developed to ensure the taxpayers are not only the first paid back but have an opportunity to share in future profits through warrants and/or stocks. now,

2:59:11 to 2:59:27( Edit History Discussion )

Jim Bunning: executive compensation limits. simply put, californians are frosted by the absence of controls on executive compensation. virtually all of the 50,000 phone calls mention this one way or the other.

2:59:27 to 2:59:42( Edit History Discussion )

Jim Bunning: there must be limits. now, i am told that the reason that the treasury secretary doesn't want limits on executive compensation is because he believes that executive then won't bring his company in to partake

2:59:42 to 2:59:56( Edit History Discussion )

Jim Bunning: in any program that is set up. well, here's my response to that. we can put that executive on his boat, take that boat out in the ocean and set it on fire if that's how he feels, that's what should

2:59:56 to 3:00:12( Edit History Discussion )

Jim Bunning: happen, or his company doesn't come in. but to say that the federal government is going to be responsible for tens of millions of dollars of executive salaries -- golden parachutes -- whether they are a

3:00:12 to 3:00:27( Edit History Discussion )

Jim Bunning: matter of contract right or not is not acceptable to the average person whose taxpayer dollars are used in this bailout. and that's just fact. i think the one proposal that was made by one of the

3:00:27 to 3:00:43( Edit History Discussion )

Jim Bunning: presidential candidates that i agree with is that there should be a limit of $400,000 on executive compension. if they don't like it, too bad. don't participate in the program. as i've talked with

3:00:43 to 3:01:04( Edit History Discussion )

Jim Bunning: people on wall street and otherwise they don't believe it's true that an executive, if his pay is tailored down, will not bring a company in that needs help. i hope that is true. so i believe there

3:01:04 to 3:01:25( Edit History Discussion )

Jim Bunning: should be precise limits set on executive pay. and finally tangible benefits for main street in the form of mortgage relief. there have been more than 500,000 foreclosures in my home state of california

3:01:25 to 3:01:40( Edit History Discussion )

Jim Bunning: so far this year. the second quarter of this year in foreclosure is 300% above the second quarter of 2007 in foreclosures. more than 800,000 are predicted before this year is over. i have a city in

3:01:40 to 3:02:00( Edit History Discussion )

Jim Bunning: california where one out of every 25 homes is in foreclosure. this is new housing, in subdivisions. as you look at it you see garage doors kicked in. you'll see houses vandalized. you'll see the grass

3:02:00 to 3:02:18( Edit History Discussion )

Jim Bunning: and grounds dry. you'll see the street sprinkled with "for sale" signs. and nobody buys because the market has become so depressed. this is -- this crisis has the roots in the subprime housing boom

3:02:18 to 3:02:35( Edit History Discussion )

Jim Bunning: that went bust. and it would be unconscionable for us to simply bailout wall street while leaving the homeowners to fend for themselves. everything i've been told, and i've talked to people in this business,

3:02:35 to 3:02:53( Edit History Discussion )

Jim Bunning: here is what they tell me: it is more cost effective to renegotiate a subprime loan and keep a family in the house than it is to foreclosure, run the risks of what happens to that home on a depressed market,

3:02:53 to 3:03:11( Edit History Discussion )

Jim Bunning: as credit is drying up, as vandals loot it, as landscaping dries up, as more homes in the area become foreclosed upon; that the way to go is renegotiate these mortgages with the existing homeowner

3:03:11 to 3:03:27( Edit History Discussion )

Jim Bunning: wherever possible. i feel very strongly that should be the case. i don't know what i will do, or any of us will do, if we authorize this kind of expenditure and we find down the book in my state that

3:03:27 to 3:03:41( Edit History Discussion )

Jim Bunning: the rest of the year 800,000 to 1 million americans are being thrown out of their homes despite this form of rescue effort. think of what it means, mr. president, in your state. you vote for this.

3:03:41 to 3:04:01( Edit History Discussion )

Jim Bunning: any other senator votes for it. and these foreclosures continue to take place and individual families continue to be thrown out of their homes. it is not a tenable situation. i hope, if anybody

3:04:01 to 3:04:17( Edit History Discussion )

Jim Bunning: is listening to this at all, that in the negotiating team they will make a real effort to mandate in some way that subprime foreclosures be renegotiated; that families, wherever possible, who have an ability

3:04:17 to 3:04:32( Edit History Discussion )

Jim Bunning: to pay, that ability to pay is met by a renegotiated loan. we have done this now in tv -- two cases with families. families who were taken advantage of, and called c.e.o. of the bank and the booming

3:04:32 to 3:04:46( Edit History Discussion )

Jim Bunning: has seen it was renegotiated. in one case, in los angeles, down to 2%. that's better than foreclosuring and running the uncertainty of the sale of the asset in a very depressed housing market. so

3:04:46 to 3:05:02( Edit History Discussion )

Jim Bunning: these are my thoughts. again, it's easy to come to the floor and give your thoughts. it's much more difficult to sit at that negotiating table. i want, once again, to thank those senators on both sides

3:05:02 to 3:05:17( Edit History Discussion )

Jim Bunning: of the aisle who really understand the nature of this crisis, that it isn't only wall street, that it does involve main street. and if there is a serious crash, it will hurt millions -- tens of millions

3:05:17 to 3:05:57( Edit History Discussion )

Jim Bunning: -- of americans, many in irreparable ways. so we must do what we must do and we must do it prudently and carefully. i thank the chair. i yield the floor. i note the absence of a quorum. the presiding