Senate Proceeding on Oct 28th, 2009 :: 8:23:40 to 8:34:10
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8:23:29 to 8:23:52( Edit History Discussion )

Robert Bennett: to the nation. mr. floor. mr. bennett: mr. president? the presidg ofcer: the mr. bennett: mr. president, i ask unanimous consent that i be allowed to proceed as if in morning business. the presiding officer: without objection. mr. bennett: mr. president, it's been a little over a year since a group of us met in the foreign

8:23:40 to 8:34:10( Edit History Discussion )
Speech By: Robert Bennett

8:23:53 to 8:24:14( Edit History Discussion )

Robert Bennett: relations committee room by the distinguished senator from connecticut, talk about the deal with that. and we came out of that meeting, held a press conference where we sounded perhaps more optimistic than we should have at the time

8:24:15 to 8:24:35( Edit History Discussion )

Robert Bennett: about having a solution to tha problem. and out of that has come now a name that is throughout the country called tarp. we didn't call it that at the time but we talked it through in a completely bipartisan and substantive way

8:24:36 to 8:24:57( Edit History Discussion )

Robert Bennett: the rescue package tt came out of that discussion. i voted for that package and i voted for the original disbursement of tarp and i stand it was the right right situation, the right time, e right thing to do. but i will share now some of the

8:24:58 to 8:25:18( Edit History Discussion )

Robert Bennett: thoughts that went into participation in that particular meeting and some of the things that came out of it. in anticipation of the meeting, i called som people whose judgment i trust and discussed this and i was td treasury cannot physically push $700 billion out the you can't sign that many contracts.

8:25:19 to 8:25:39( Edit History Discussion )

Robert Bennett: that's far too much money. and the suggestion i made was, why don't we give them $50 billion -- because i was spend in any one month -- why don't we give them $50 billion for five months, for $250 billion, and see how it

8:25:40 to 8:26:00( Edit History Discussion )

Robert Bennett: works before we buy in to the $700 billion number that secretary paulson was talking about? no, second paulson let us know, he had to have the $700 billion as the headline. he couldn't calm down the markets, the international markets, unless he had a number that big. and wealked it over in that

8:26:01 to 8:26:21( Edit History Discussion )

Robert Bennett: room and came up with this solution, which i think was a good one. we would give him the $700 billion headline authorized $700 billion, but we actu $350 billion and said he would have to come back to the congress for the second $350 billion.

8:26:22 to 8:26:43( Edit History Discussion )

Robert Bennett: and also in that group -- and it was not by any means my suggestion or any other one's suggestion, it was overwhelmingly the consensus -- we have to put some controls in here. we have a c oversight committee that we created. we have to create an inspector general. i remember one of the members of

8:26:44 to 8:27:06( Edit History Discussion )

Robert Bennett: the group saying, i don't trust matter howright he is, with $700 billion and absolutely no reporting or transparency or control situation. so one of the things that was discussed and that i thought was put in the bill was that when

8:27:07 to 8:27:28( Edit History Discussion )

Robert Bennett: the money starts to come back -- because, understand, tarp was not a bailout program ithe sense that we gave money to peop anything. it was a program where we were acquiring things, either acquiring collateral or when the money starts to come back, it will be used t pay

8:27:29 to 8:27:50( Edit History Discussion )

Robert Bennett: down the national debt. if we're going to expend $700 billion to when the $700 billion comes back back, it goes to reduce the debt that was created when it went out. and that was

8:27:51 to 8:28:11( Edit History Discussion )

Robert Bennett: the agreement that we'd made. well, i voted for the tarp and i voted for the $350 billion. after we came to the second tranche, the second $350 billion, listening to the inspector general and listening to what the oversight committee had to say and looking at how well the

8:28:12 to 8:28:35( Edit History Discussion )

Robert Bennett: first $350 billion had worked in stabilizing the situation and getting us past the panic that we were facing, i voted against the second $350 billion i was afr something of a could be used for other things

8:28:36 to 8:28:56( Edit History Discussion )

Robert Bennett: than acquiring assets that could -- could be liquidated and bring money back to the treasury and that happened. because much of the money went for things very different than that which we were talking about in that room that morning. well, the amendment that i will

8:28:57 to 8:29:19( Edit History Discussion )

Robert Bennett: offer to the bill when we get on the bill will be to sunset tarp at the end of this year. this is where we are. treasury is sitting on about $370 billion in the tarp fund right now. the recession certainly is not over and the challenge in our

8:29:20 to 8:29:40( Edit History Discussion )

Robert Bennett: economy is still there in tremendous -- with tremendous force, but were facing when we had that meeting is over and treasury to deal with that kind of a no longer needs that money. and the fear i have is that it

8:29:41 to 8:30:01( Edit History Discussion )

Robert Bennett: -- treasury is starting to recycle the money, going to pay down the national debt. it has become something of a slush fund to say, all right, if we have a circumstance here where we'd like to spend s money, we can't get it from the congress, let's take it out of the tarp. if there is a situation over here where we think it might be helpful and we can't get the

8:30:02 to 8:30:23( Edit History Discussion )

Robert Bennett: congress to support us, let's take it out of the tarp. the temptation signature on billion -- the temptation sitting on $370 billion to spend that money is overwhelming. nowings when secretary came before the joint economic committee -- my memory right now

8:30:24 to 8:30:45( Edit History Discussion )

Robert Bennett: to put the exact -- the question repaying the national debt rather than recycling the money, and he said, the lawyers from the treasury department had looked at the act of congress and that they made it clear that

8:30:46 to 8:31:11( Edit History Discussion )

Robert Bennett: we in the clear that the money could be recycled, it could be relent it could go out again p that. came as a great surprise to meevment because i thought the conversation we had in that room, as the bill was being written, made it clear that the money had to go to pay down the national debt.

8:31:13 to 8:31:34( Edit History Discussion )

Robert Bennett: but i the lawyers and even if we did, it would take so many years to adjudicate, there's no point in it. but it comes as a great surprise that as the money comes back in and money is coming back in from tarp that it doesn't go to pay down the national debt and that it i

8:31:35 to 8:31:56( Edit History Discussion )

Robert Bennett: revolving fund, almost a a revolving credit card, if you will that the treasury can use for the purposes that it deems wevment so i will offer an amendment that will sunset tarp at the end of this year. inspector general and the congressional committee that we set up on that

8:31:57 to 8:32:17( Edit History Discussion )

Robert Bennett: occasion still has a questions about tarp and the way it's being used and there's great concern that the transparency that we had hoped for is not there. i have come to the position -- the decision to offer this amendment for myself and senator thune, and we will do so if

8:32:18 to 8:32:38( Edit History Discussion )

Robert Bennett: we're allowed to when we get on the bill, long before "the wall street journal" offered an editorial. but on the 27th of orkts "the wall street journal" has an editorial entitled "rolling up tarp" which i would ask unanimous consent appear in the record following my comment. the presiding officer: without objection. mr. bennett: and the lead

8:32:39 to 8:32:59( Edit History Discussion )

Robert Bennett: paragraphs i would like to quote. it says, "the troubled asset relief program will expire on december 31 unless treasury secretary timothy geithner exercises his authority to extend it to next october." they obviously didn't know about my amendment, or i'm sure they

8:33:00 to 8:33:21( Edit History Discussion )

Robert Bennett: would have endorsed it. "we hope he doesn't. historians will debate tarp's role in ending the financial panic of 2008, but today there is little evidence that the government needs or can prudently manage what has evolved into ads 700 billion all-purpose political we supported tarp to deal with

8:33:22 to 8:33:43( Edit History Discussion )

Robert Bennett: toxic bank assets and resolve failing banks as a resolution agency of the kind that worked with the savings and loans in the 1980's. some taxpayer money was needed beyond what the fdic shrinking insurance fund had available. but tarp quickly became a treasury tool to save failing institutions without imposing

8:33:44 to 8:34:05( Edit History Discussion )

Robert Bennett: discipline, citigroup, and even to force public capital on to banks that didn't need it. this stigmatized all banks as evolving into an excuse for the federal reserve to micromanage compensation." close quote.

8:34:06 to 8:34:11( Edit History Discussion )

Robert Bennett: mr. president, i think we take the decision for secretary geithner and we sunset tarp on