House Proceeding on Jan 15th, 2009 :: 0:21:35 to 0:41:35
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0:20:30 to 0:21:35( Edit History Discussion )
Speech By: Patrick J. Kennedy

0:21:13 to 0:21:35( Edit History Discussion )

Patrick J. Kennedy: not scheduled to go into place until july, 2010. then they'll save our consumers over 0 billion a year. i think it would be outrageous to see us bail out these banks and yet see them also continue to gouge these consumers of ours, these taxpayers at the other end of the ledger on these predatory practices. i'd like to work with the

0:21:36 to 0:21:56( Edit History Discussion )

Barney Frank: chairman to see that we address this issue and forthcoming legislation. mr. frank: as he knows because he was a strong supporter, the committee on financial services once we became the majority in fact put through this house a bill that was even tougher in some ways than what the federal reserve did. i think it was the spur to the federal reserve acting. unfortunately, it wasn't acted

0:21:40 to 0:26:35( Edit History Discussion )
Speech By: Barney Frank

0:21:57 to 0:22:18( Edit History Discussion )

Barney Frank: on in the senate. i thought it was good we passed t i know there are members we can't know the senate is going to pass something, we shouldn't try. we rejected that. we did pass that bill. the gentleman from new yk, miss maloney, has been a leader here. she'll bring that will up again. we want to apply those principles not just tarp participants but all credit card companies. the gentleman is right.

0:22:19 to 0:22:39( Edit History Discussion )

Barney Frank: we should not wait until 2010. i hope that we will have this bill on the floor by march. and that we will be able,nd the gentleman's input has been helpful to us, pass a bill that will become law fairly soon. mr. kennedy: i want to sleuth the gentleman for the transparency and accountability standards he has in the manager's amendment and encourage additional funds to go to the foreclosure problem that

0:22:40 to 0:23:01( Edit History Discussion )

Barney Frank: he's identified in his manager's amendment. the speaker pro tempore: the gentleman from new jersey. mr. garrett: i yield myself such time as i may consume. it's interesting to find out that the chairman who oftentimes berates our side of the aisle for distancing ourselves from our president now finds, i find that he is already distancing

0:23:02 to 0:23:23( Edit History Discussion )

Barney Frank: himself from the president to be. president-elect obama. while he is correct when saying being overly technical by i by saying that it was president bush that actually filed the paperwork andade the submission to this house and to the congress in order for the request of the additional tarp funds, he seems to be distancing himself from his pty's

0:23:24 to 0:23:44( Edit History Discussion )

Barney Frank: president and this nation's president-elect obama for it was president-elect obama who did go to president bush and did request that this congress facilitate the passage of the additional 50 billion. the chairman may not like the fact that president-elect obama is requesting that.

0:23:45 to 0:24:05( Edit History Discussion )

Barney Frank: mr. frank: would the gentleman yield? mr. garrett: in one second. the chairman may not like the fact that president-elect obama is requesting it. it may be quite candidly the chairman has theame concerns that i do. that president-elect obama failed to give us a plan. which makes it hard for either one of us quite candidly to be able to discuss either in committee or here on the floor

0:24:06 to 0:24:26( Edit History Discussion )

Barney Frank: in a rational, logical manner what it is exactly we'll spend the 50 billion. so i will join with the chairman in being concerned and outraged that the president-elect obama has not given us a plan. but it is concerning that the chairman points to president bush when he knows that his president-elect obama who instigated this.

0:24:27 to 0:24:48( Edit History Discussion )

Barney Frank: i will yield. mr. frank: the gentleman has transformed my correcting hiser roar into distancing my -- his errorrom distancing myself from president obama. said when i got up it was done by president bush at the request of president obama. mr. garrett: i reclaiming my time. i understand what he said before. you have to always point to the words that came after that.

0:24:49 to 0:25:09( Edit History Discussion )

Barney Frank: he pointed out that it was -- he was alluding to the fact that it actually came to the floor from president bush , when yes, it was president-elect obama who initiated it. but for the fact that he initiated it, president bush as far as i know has never made a statement at he would have unilaterally made that request. i have never seen anything in the media, i may be wrong, i

0:25:10 to 0:25:30( Edit History Discussion )

Barney Frank: have never seen anything in the media or otherwise that president bush was about to come to this congress and ask for those funds. it was president-elect obama. for good or for bad. and the fact we don't have plan here quite candidly to discuss and debate today, more for the bad than the good, we are coming here without such a plan. i reserve the balance of my time. the speaker pro tempore: the gentleman from massachusetts.

0:25:31 to 0:25:52( Edit History Discussion )

Barney Frank: mr. frank: i yield myself one minute. the gentleman from new jersey has built that castle in the air because i corrected his flat error. he said, president-elect obama asked for t he did not. i said that president bush asked for it at the request of president-elect obama. how my correcting his error became distancing myself from

0:25:53 to 0:26:13( Edit History Discussion )

Barney Frank: the new president is beyond me. in fact, president bush's administration did want the second 50, the gentleman is wrong in saying they didn't. second paulson was deterred from doing that, however, because we told him that we were sufficiently disappointed in the way it had been administered. if he asked for it we would probably reject it. only if he came to some agreement with the new president

0:26:14 to 0:26:34( Edit History Discussion )

Barney Frank: and the congress could that go forward. that's the facts. yes, the outgoing administration wanted it. they withheld because they were told they wouldn't get it unless they had cooperation. and the two administrations jointly did that. there is no distancing when i make that point. in fact the central point here about the tarp is this. we believe quite to the opposite

0:26:35 to 0:26:35( Edit History Discussion )

Barney Frank: that we are distancing ourself

0:26:36 to 0:26:56( Edit History Discussion )

Dennis Moore: from mr. obama. we believe that because bush used this badly is no reason to give obama not a chance to use it well. i now yield two minutes to the gentleman from kansas, mr. moore. the speaker pro tempore: the gentleman from kansas is recognized for two minutes. mr. moore: thank you, mr. speaker. thank you, mr. chairman. mr. speaker, i rise today in support of chairman frank's

0:26:40 to 0:28:15( Edit History Discussion )
Speech By: Dennis Moore

0:26:57 to 0:27:17( Edit History Discussion )

Dennis Moore: manager's amendment and the underlying legislation. i want to thank chairman frank and his excellent staff for working with me to address a concern hi with the original draft bill. on tuesday, i talked to our kansas gover billous, we were concerned about a provision in the bill that would have required financial firms participating in tarp to

0:27:18 to 0:27:39( Edit History Discussion )

Dennis Moore: divest their companies of corporate business aircraft. while it's clear the auto executives were verynsensitive to american taxpayers when they flew in their private jets last november to request billions of dollars in federal assistance, a blanket prohibition against the corporate use of business aircraft would have had the unintended consequence of hurting the generalviation industry and its workers who are so important t kansas.

0:27:40 to 0:28:00( Edit History Discussion )

Dennis Moore: with nearly 44,000 kansans who work for aviation companies sezz in a -- cessna and boeing, many families depend on this industry. and the impact would have been felt not just in kansas. general aviation contributes more than 50 billion a year to the u.s. economy.

0:28:01 to 0:28:16( Edit History Discussion )

Dennis Moore: and employs more than 1.2 million people. i want to thank again chairman frank and his staff who responded to our concerns and striking this provision. this is good news for kansans and aviation workers across the country. these are difficult times. i urge my colleagues to support the manager's amendment.

0:28:17 to 0:28:38( Edit History Discussion )

Jeb Hensarling: d to -- the bill to ensure these tarp funds are responsibly allocated with strong oversight protections for the american taxpayer. i yield back. thank you, mr. chairman. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from new jersey. mr. garrett: i thank the chairman. i yield five minutes to the leader on this issue and more importantly a leader on the

0:28:20 to 0:32:15( Edit History Discussion )
Speech By: Jeb Hensarling

0:28:39 to 0:29:01( Edit History Discussion )

Jeb Hensarling: issue of reviving our economy in general, and a free market manner which will not put the american taxpayer on the hook, the gentleman from texas. the speaker pro tempore: the gentleman from texas is recognized for five minutes. mr. hensarling: i thank the gentleman for yielding. mr. chairman, i again question why we are even here today. i observe again that those who

0:29:02 to 0:29:24( Edit History Discussion )

Jeb Hensarling: have risen to be the largest critics of the tarp bill were the ones who wrote the tarp bill. so number one, why weren't the standards, the accountability, the provisions that some are seeking today, why weren't they there originally? that's question number one. question number two is why are

0:29:25 to 0:29:46( Edit History Discussion )

Jeb Hensarling: we having to have a vote that turns off the spigot of an extra 50 billion of taxpayer money as opposed to turn it on? so why are we even having to have this vote, mr. chairman, i think is an interesting question that the american people want to know the answer to. now already if you look at the actions of the federal reserve,

0:29:47 to 0:30:08( Edit History Discussion )

Jeb Hensarling: if you look at the actions of treasury, mr. chairman we are already up to somewhere in the neighborhoods of trillion to trillion of potential liability, taxpayer exposure. i don't necessarily believe the taxpayer will have to pay at all. i hope and pray that the taxpayer will get some return on

0:30:09 to 0:30:29( Edit History Discussion )

Jeb Hensarling: his investment. but to sit here and say that unless congress somehow authorizes the incoming president to spend an extra 50 billion, that we could spend ourselves, and to give him this authority without any plan being presented whatsoever, mr. chairman, it's something i don't understand.

0:30:30 to 0:30:50( Edit History Discussion )

Jeb Hensarling: it's not something that the constituents that i represent in the fifth district of texas understand. . now, i believe the chairman is right on a couple of instances. we need to know how institutions that are receiving tarp funds actually spend it.

0:30:51 to 0:31:12( Edit History Discussion )

Jeb Hensarling: that's important. we need to have some kind of measurement of success to know what's actually happening here. but i look at the provisions of the strings that he's attempting to attach after the fact when if this was a horse leaving the barn i don't think we've seen much left but his tail. but when i look at the strings

0:31:13 to 0:31:33( Edit History Discussion )

Jeb Hensarling: that are being attached here, i mean, number one, we have explicit language here that most of us have concluded of picking winners and losers in our economy. expressed language dealing with the auto companies. now, i don want to see the auto companies fail. nobody in america does. but naming an industry in

0:31:34 to 0:31:57( Edit History Discussion )

Jeb Hensarling: america -- but name an industry in america isn't struggling? is congress so wise that they can decide which industries are deserving of the taxpayer bailout? it's one thing for the federal government to try to monitor the money supply and ensure that the money supply is proper that would hopefully lift all industries, help all families,

0:31:58 to 0:32:16( Edit History Discussion )

Jeb Hensarling: help all job creators and those who have the jobs. but it's another that says, here's the explicit job for the auto industry, and if it's the auto industry today, is it the airlines industry tomorrow? who is it next week? again, how can everybody who's

0:32:17 to 0:32:37( Edit History Discussion )

struggling bail out everybody else who's struggling? and what has become of all of this money? again, it's not like this is the only 50 billion lying around. the federal reserve already has a number of credit facilities that are set up. we don't even know the full impact of the first 50 billion.

0:32:38 to 0:32:58( Edit History Discussion )

and so yet now we have a plan that as i understand and i believe i heard the chairman say that the senate does not tend to vote on this which is another reason why i question the house's time on this, but try to have a provision that picks winners and losers in our economy and specifically in our housing industry as well.

0:32:59 to 0:33:19( Edit History Discussion )

and we know about the tragic circumstances in our housing industry, but what's going to make it even more tragic, mr. chairman, is to take money away from people who are current on their mortgages or who rent or who own their homes outright to give the money to people who aren't current in their mortgage. now, there are a couple of

0:33:20 to 0:33:41( Edit History Discussion )

reasons that people aren't currt in their mortgage. maybe it's through no fault of their own. maybe they were duped by a predatory lender. maybe they had a serious illness. maybe they had a loss of job. these are serious setbacks and i hope we can help these people. mr. chairman, there are a huge universe of people that engaged

0:33:42 to 0:34:02( Edit History Discussion )

in predatory lending. there are people who decided they would turn their homes into an a.t.m. machine and now they expect their neighbor to bail them out. there's a whole group who didn't really buy a home, they bought an investment and they decided to live in it and now they expect their neighbor to bail them out. when you're struggling to pay your mortgage, mr. chairman,

0:34:03 to 0:34:23( Edit History Discussion )

Barney Frank: you shouldn't have to be compelled to pay your neighbor's as well. for all those reasons this amendment should be defeated. the chairman: the gentleman from massachusetts. mr. frank: mr. chairman, i first yield myselone minute -- the chairman: the gentleman is recognized for one minute. mr. frank: i appreciate the intellectual honesty of the

0:34:10 to 0:35:50( Edit History Discussion )
Speech By: Barney Frank

0:34:24 to 0:34:46( Edit History Discussion )

Barney Frank: gentleman from texas. he tells of the many criticisms that we had of the bush administration. namely, the foreclosure relief. the gentleman opposes these efforts. i must say that i am encouraged by the bush appointee's secretary of h.u.d., and the

0:34:47 to 0:35:07( Edit History Discussion )

Barney Frank: s.e.c. of the fdic. it could be done effectively. but i appreciate this is a genuine difference between us, and i appreciate the gentleman articulating it. in 2007, this house passed a bill to restrict subprime lending aimed at both borrowers and lenders. it would have made it impossible for people to borrow

0:35:08 to 0:35:28( Edit History Discussion )

Barney Frank: inappropriately as well as to lend. the gentleman opposed it as well as many others. the gentleman from new jersey did. there are important philosophical differences. "the wall street journal" denounces us for doing foreclosure relief, denounced us at the time when we passed the bill to restrict subprime lending it was undinterferns in the market. the chairman: the gentleman's

0:35:29 to 0:35:49( Edit History Discussion )

Barney Frank: time has expired. mr. frank: i yield myself 30 seconds. whether or not there should be federal programs as advocated by fdic secretary and the h.u.d. secretary, it is a very defining difference between most of us on this side and most on the other de although there are many on the

0:35:50 to 0:35:50( Edit History Discussion )

Barney Frank: republican side who do agree

0:35:51 to 0:36:11( Edit History Discussion )

Jesse L. Jr.Jackson: with us that we should try to abate foreclosure, not just a matter of compassion but trying to solve our economic problem. i now yield two minutes to the gentlewoman from texas. the chairman: the gentlewoman from texas is recognized for two minutes. ms. jackson lee: i ask unanimous consent to revise and extend. the chairman: without objection. ms. jackson lee: let me thank

0:35:55 to 0:37:20( Edit History Discussion )
Speech By: Jesse L. Jr.Jackson

0:36:12 to 0:36:33( Edit History Discussion )

Jesse L. Jr.Jackson: the chairman very much. i remember the haggling previously in the last year about this bill. and one of the issues was the veto threat of the president in not allowing us to add language earlier. we fought for it. let me thank the chairman for what we've all fought for over the years, over the last couple of months and that is the amount of, if you will, mortgage setaside money. i want to announce that over and over again.

0:36:34 to 0:36:55( Edit History Discussion )

Jesse L. Jr.Jackson: there is money included in here that will directly work with my constituents, who i sat down at her kitchen table, she had a home she could afford except for the adjustable rate. i want to thank you for that. we all want more. we're starting out in that direction to be able to focus on mortgage workout. mr. chairman, i'd like to

0:36:56 to 0:37:16( Edit History Discussion )

Jesse L. Jr.Jackson: engage in a colloquy at this time. quickly, the treasury department has yet to issue the necessary guidelines for about 3,000 additional private banks. most of them are set up as partnerships with no more than 100 shareholders. they're not able to issue preferred shares to the government in exchange for capital injections as other banks.

0:37:17 to 0:37:22( Edit History Discussion )

Jesse L. Jr.Jackson: however, they are very vital to the inner city.

0:37:23 to 0:37:43( Edit History Discussion )

Barney Frank: and i ask -- and i work together -- whether or not you can explain the language. mr. frank: if the gentlewoman will will the gentleman yield. ms. jackson lee: i'll yield. mr. frank: we have amended the bill to take into account these private banks, many of which will serve low-income communities and people of experience in this area. as i said yesterday when the

0:37:25 to 0:37:50( Edit History Discussion )
Speech By: Barney Frank

0:37:44 to 0:37:50( Edit History Discussion )

Barney Frank: question came up of mutuals. the form of ownership should not be determined here. whether they're providing a valid function in the economy

0:37:51 to 0:38:13( Edit History Discussion )

Jesse L. Jr.Jackson: and whether or not they can use these funds responsibly is all that should be covered. we did amend the bill to the gentlewoman's request. ms. jackson lee: the language does move this along. let me also thank you for regulating the automobile industry, which he promised to do, which you also worked specifically to provide more credit to the automobile industry.

0:37:55 to 0:38:55( Edit History Discussion )
Speech By: Jesse L. Jr.Jackson

0:38:14 to 0:38:35( Edit History Discussion )

Jesse L. Jr.Jackson: but in that light, we talked -- mr. frank: i yield the gentlewoman 130ekds. the chairman: the gentlewoman is recognized. ms. jackson lee: you now have some l only can they benefit small businesses from loans but they can service or participate in that process of doing business. mr. frank: will the gentlewoman yield? ms. jackson lee: i yield.

0:38:36 to 0:38:56( Edit History Discussion )

Jesse L. Jr.Jackson: mr. frank: it will make the administration better if those administering it acknowledge the whole range of people to whom this is aimed. i thank the gentlewoman. ms. jackson lee: i want to thank you for the office of inconclusion. people are hurting. it -- inclusion. people are hurting. the chairman: the gentlewoman's

0:38:57 to 0:39:18( Edit History Discussion )

time has expired. ms. jackson lee: i yield back. the chairman: the gentleman from new jersey. mr. garrett: i yield myself 30 seconds. the chairman: the gentleman is recognized for 30 seconds. mr. garrett: there is a difference of keeping people in their houses. as we know, both sides of the aisle want to do the best that the federal government can do in this area and the administration has already set

0:39:19 to 0:39:41( Edit History Discussion )

Dan Burton: up a program, the hope program, in trying to facilitate those people who are in difficult situations to remain in their houses. i believe it was ms. waters that raised the same point. what do we do for the people that has paid their bills month after month on time and saying to them, well, you know what,

0:39:40 to 0:41:30( Edit History Discussion )
Speech By: Dan Burton

0:39:42 to 0:40:02( Edit History Discussion )

Dan Burton: we're going to use your tax dollars to subsidize the people across the street with a program to help them keep when they went over the amount they should be spending on their homes? and that's the philosophical difference we have. i now yield two minutes to the gentleman from indiana, mr. burton. the chairman: the gentleman from indiana is recognized for two minutes.

0:40:03 to 0:40:23( Edit History Discussion )

Dan Burton: mr. burton: i'm opposed to all these bailouts, but after having said that i say if we're going to do it we really need a comprehensive plan that's going to deal with the problems facing ts country. i had home builders come into my -- my office last week and they told me that their businesses are being reappraised and they're going to have to pay the difference

0:40:24 to 0:40:44( Edit History Discussion )

Dan Burton: between what the appraisal was initially and what it is now and they're driving a lot of these home builders t of business. i had some people who are commercial developers come in to see me last week and they told me that their commercial assets are being reappraised, maybe 70% of what they were before, and they have to pay the difference between what they were getting in the 70%.

0:40:45 to 0:41:05( Edit History Discussion )

Dan Burton: and they're being driven out of business. so there's a huge cascading effect with all these problems that we're facing right now and we're not addressinghem in this bill or any of the other bills that we've seen. we have people losing their homes. you have home builders that are going out of business. you have commercial developers that are going out of business because of these reappraisals

0:41:06 to 0:41:26( Edit History Discussion )

Dan Burton: and there's nothing in the plans that i've seen that addresses these problems. mr. frank and i are good friends, but just throwing this money at these problems without any plan is absolutely crazy. and yet we did it with the first 50 billion. we're going to do it again and then we're going to come back with a .2 trillion request in just another two or three

0:41:27 to 0:41:30( Edit History Discussion )

Dan Burton: weeks. i mean, we can't buy our way out of these problems.

0:41:31 to 0:41:52( Edit History Discussion )

we have to have a sound business plan to deal with these problems. and if we don't do it we're going to see a huge economic problem that's even worse than what we face today. so i'd like to say to mr. frank and my colleagues before we start giving all this money away, why don't we really sit down with the people that is supposed to be administering this money and come up with a