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Senate Proceeding 10-01-08 on Oct 1st, 2008 :: 1:59:05 to 2:09:25
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1:58:44 to 1:59:05( Edit History Discussion )

markets to prevent catastrophic consequences for our entire economy. madam president, none of us is happy with the crisis we face, with the urgent pressure to take decisive action, or with the very limited

Susan Collins

1:59:05 to 1:59:27( Edit History Discussion )

Susan Collins: policy options available to us at this point. i shared the anger of many of my constituents over this crisis, and i subscribe to the principles that many of them invoke. as the senator has pointed

Susan Collins

1:59:05 to 2:09:25( Edit History Discussion )
Speech By: Susan Collins

Susan Collins

1:59:27 to 1:59:45( Edit History Discussion )

Susan Collins: out, the initial proposal that the treasury secretary presented to us was deeply flawed. that is why i pushed for a strong taxpayer protections to be included in the plan. it's why i insisted that

Susan Collins

1:59:45 to 2:00:01( Edit History Discussion )

Susan Collins: any plan include limitations on excessive compensation and golden parachutes for executives of the wall street firms that help create the current kraoeufps and that now -- crisis and that now seek federal

Susan Collins

2:00:01 to 2:00:18( Edit History Discussion )

Susan Collins: assistance. those controls and safeguards are part of the bipartisan package now before the senate, and that is why, madam president, i advocated for strong oversight and accountability provisions rather

Susan Collins

2:00:18 to 2:00:36( Edit History Discussion )

Susan Collins: than a blank check for the secretary of the treasury. those oversight and accountability protections too have been iluded in this package. i supported the proposal for a special inspector general to review

Susan Collins

2:00:36 to 2:00:54( Edit History Discussion )

Susan Collins: the way that this program will operate. but the fact is, madam president, that unfortunately, we have to face the reality that the collapse of the housing bubble and the mortgages, the subprime mortgages

Susan Collins

2:00:54 to 2:01:11( Edit History Discussion )

Susan Collins: and the exotic securities that floated along with them does not just affect the executive sweeps on wall street. in fact, the ramifications cascade throughout our economy, affecting the credit lines needed

Susan Collins

2:01:11 to 2:01:29( Edit History Discussion )

Susan Collins: by small businesses to meet their payrolls, the young couple seeking to buy their first home, the automobile dealer trying to finance his inventory, the 55-year-old worker whose 401(k) plan just lost

Susan Collins

2:01:29 to 2:02:02( Edit History Discussion )

Susan Collins: a great deal of its value. and even our states and counties, the state of maine found itself unable to finance the routine $50 ph-pl transportation bond -- $50 million transportation bond last week.

Susan Collins

2:02:02 to 2:02:17( Edit History Discussion )

Susan Collins: how did we get here, madam president? well, the culprits are many. they include the greedy wallz people into mortgages that were totally unsuitable for them. they include the naive or deceptive borrowers

Susan Collins

2:02:17 to 2:02:34( Edit History Discussion )

Susan Collins: who simply did not understand or misrepresented their ability to pay once their mortgage rates reset. they included at the heart of this scandal, the government-backed mortgage finance companies

Susan Collins

2:02:34 to 2:02:54( Edit History Discussion )

Susan Collins: -- fannie mae and freddie mac -- who took on huge amounts of risk with paltry levels of cap tap ta l. -- capital. 15 years ago some members of congress warned of the potential systemic risk that fannie

Susan Collins

2:02:54 to 2:03:11( Edit History Discussion )

Susan Collins: mae and freddie mac presented. officials in both the clinton and bush administrations issued warnings and proposed reforms. in 2005, legislation that would have made a difference was actually considered

Susan Collins

2:03:11 to 2:03:26( Edit History Discussion )

Susan Collins: by the senate banking committee and proposed by republican members of that committee. the full house considered a bill that would have helped, although unfortunately rejected some strengthening amendments.

Susan Collins

2:03:26 to 2:03:47( Edit History Discussion )

Susan Collins: unfortunately, these reforms did not get enacted until this why you will when the sure pressure of the mortgage crisis finally forced do think act. and this is a huge crisis. there's some $1 trillion

Susan Collins

2:03:47 to 2:04:06( Edit History Discussion )

Susan Collins: worth of subprime mortgages in this country. freddie and fannie garn demore than 40% of america -- guarantee more than 40% of america's mortgages and lately have been guaranteeing more than 80% because

Susan Collins

2:04:06 to 2:04:22( Edit History Discussion )

Susan Collins: the private sector has virtually disappeared. as a former maine financial securities and banking and insurance regulator, i understand that this is a very complex problem. its roots lie in the past decade

Susan Collins

2:04:22 to 2:04:38( Edit History Discussion )

Susan Collins: of the real estate bubble, the relaxed lending standards, the existence of this huge and exploding subprime mortgage market, the creation of complicated securities tied to mortgages that were not held by

Susan Collins

2:04:38 to 2:04:53( Edit History Discussion )

Susan Collins: the originators of those mortgages, and then the sale of those securities when their risks were poorly disclosed, not well understood and likely -- and lightly regulated, if at all. the subprime mortgages

Susan Collins

2:04:53 to 2:05:07( Edit History Discussion )

Susan Collins: were bundled together into mortgage-backed securities that were in turn linked to complicated financial instaouplts that in some case -- init straouplts that in some cases were not regulated at

2:05:07 to 2:05:26( Edit History Discussion )

all. an example are the swaps we heard discussed. the swaps aren't securities, so, thus, they're not regulated by the s.e.c. and while they perform a function very similar to an insurance policy, they're

2:05:26 to 2:05:49( Edit History Discussion )

not insurance in the traditional sense, so they escape regulation by state insurance regulators. the lack of regulation set the stage for deep losses for countless investors in other entities that had

2:05:49 to 2:06:06( Edit History Discussion )

entered into swap contracts. but, madam president, frustrated and angry though we are, the focus of our attention today must be on averting the worsening storm of financial distress. and we must

2:06:06 to 2:06:22( Edit History Discussion )

pass the much-improved bipartisan package to halt its spread and to phed indicate its damage -- and to medicate its damage. we have seen the headline events, the bank failures, the government takeover

2:06:22 to 2:06:36( Edit History Discussion )

of freddie and fannie. the failures of bear stearns and lehman brothers, the forced sales of merrill lynch and wachovia. these are the big headline events, and they may seem detached from people's daily

Susan Collins

2:06:36 to 2:06:56( Edit History Discussion )

Susan Collins: lives, but they are not. millions of americans are being reminded that the cost and supply of new mortgages, the value of our homes, the availability of student loans, the interest rates on our credit

Susan Collins

2:06:56 to 2:07:13( Edit History Discussion )

Susan Collins: cards, the short-term loans for business payrolls and supplies, the value of our retirement savings are all tightly connected to the global web of credit and finance. economists of every ideological

Susan Collins

2:07:13 to 2:07:33( Edit History Discussion )

Susan Collins: leaning agree that we face a catastrophic crisis if we do not act. monday's sudden drop in the stock market, the disappearance of interbank lending, the flight from money market funds all stand as indicators

Susan Collins

2:07:33 to 2:07:51( Edit History Discussion )

Susan Collins: of trouble and signs of panic. as the economists noted a few days ago, -- quote -- "the potential cost of producing nothing or too little too slowly include a financial crisis and a deep recession

Susan Collins

2:07:51 to 2:08:10( Edit History Discussion )

Susan Collins: spilling across the world." time is short, and i'm not referring to the time until adjournment. we must act, because the crisis will grow worse without delay and because the treasury does not have

Susan Collins

2:08:10 to 2:08:28( Edit History Discussion )

Susan Collins: unlimited authority or resources to continue case by case rescues. the current compromise agreement includes principles for which i've pushed, including strong protections for taxpayers, so that it is

Susan Collins

2:08:28 to 2:08:47( Edit History Discussion )

Susan Collins: very unlikely that taxpayers wi be on the hook for $700 billion. in fact, there's a chance with proper management of this program that in some cases the taxpayers could actually make a profit. the

Susan Collins

2:08:47 to 2:09:02( Edit History Discussion )

Susan Collins: bill now includes strong protections, curbs on excessive executive compensation, including golden parachutes, and tough oversight and accountability. madam president, we must act now. none of us wants

Susan Collins

2:09:02 to 2:09:10( Edit History Discussion )

Susan Collins: to see the further devastating consequences for our economy. madam president, i ask unanimous consent that the remainder of my statement be entered into the record. the presiding officer: without objection.

Susan Collins

2:09:10 to 2:09:25( Edit History Discussion )

Susan Collins: the senator from connecticut. mr. dodd: madam president, i ask consent that the following fellow law clerks and interns of the staff of the finance committee be allowed on the senate floor for the duration

Jack Reed

2:09:25 to 2:09:36( Edit History Discussion )

Jack Reed: of the debate on the economic stabilization tax extenders and energy: richard mallen, mary baker, sean thomas and kelsey polson. the presiding officer: without objection, so ordered. mr. dodd: i want to ask

Jack Reed

2:09:25 to 2:15:08( Edit History Discussion )
Speech By: Jack Reed

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