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THEY'RE VERY POWERFUL.
I DON'T KNOW, I SUSPECT THAT
MANY OF US DID THAT WE STOPPED
A AT THE LOCAL STORE AND DIDN'T
GO TO HOME DETEE POWE WE WENT
DOWN TO THE ACE HARDWARE.
THIS YEAR, I WENT
TO CRAFT SHOWS, I BUY DOZENS A
CONDITION DOZENS OF GIFTS, I
FIND LOCALLY MADE ITEMS I KNOW
THE MONEY GO INTO THE POCKETS
OF LOCAL PEOPLE AND WHY --
THESE CRAFT SHOW, THEY HOLD
THEM IN CHURCHES AND THEY HOLD
THEM IN AUDITORIUMS AND -- WHY
DON'T SOME BIG SHOPPING CENTER
COMPLEXES INVITE THEM IN?
WHAT'S THE PROBLEM WITH TRYING
TO HELP LOCAL INNOVATION, LOCAL
DEVELOPMENT?
WE FIND SO MANY RESTRICTIONS
THAT MAKE IT HARD, ONE OF THE
ENOUGH IS BECAUSE CERTAIN
REASONS WE CAN'T GROW JOBS FAST
INTERESTS IN OUR SOCIETY HAVE
SUCH A LOCK ON WHO CAN GET IN
THE DOOR.
THERE OUGHT TO BE A SECTION FOR
LOCAL.
WE SHOULDN'T HAVE TO PASS A
FEDERAL LAW FOR THAT.
PEOPLE -- WE SHOULD BE SMART
ENOUGH OUT THERE TO DO IT, IT
CREATES MORE CUSTOMERS, ALWAYS
AROUND, AND A LOT OF US WANT TO
SUPPORT LOCAL.
I DON'T THINK
WE'RE TALKING ABOUT A LAW OR
NEW REGULATION, WE'RE TALKING
ABOUT SOMETHING WE OUGHT TO DO
FOR OUR COMMUNITIES, RECOGNIZE
COMMUNITY.
THAT WE'RE ALL PART OF A
YOU SAID SOMETHING A FEW
MOMENTS AGO THAT CAUSED ME TO
COME BACK TO THIS ISSUE YOU
TALKED ABOUT THE TRADE DEFICIT
AND THE WAY IN WHICH WE ARE
LITERALLY EXPORTING OUR MONEY.
WE'RE ALSO EXPORTING OUR JOBS.
LAST DECEMBER, JUST A YEAR AGO,
ON THIS FLOOR, WE TOOK UP A
PIECE OF LEGISLATION THAT DEALT
WITH THIS ISSUE AND IT -- IN
THE PREVIOUS TAX CODE, THERE
WERE TAX BREAKS GIVEN TO
AMERICAN CORPORATIONS FOR
SHIPPING JOBS OFFSHORE, FOR
OFFSHORING AMERICAN JOBS, THEY
GOT A TAX REDUCTION.
AND SOME OF US SAID, WHAT IN
THE WORLD IS THAT ALL ABOUT?
WE SCRAMBLED AND TRIED TO
FIGURE OUT WHERE THE CODES WERE
AND A BILL CAME FORTH ON THE
FLOOR THAT ELIMINATED ABOUT 2/3
OF THOSE TAX BREAKS GIVEN TO
AMERICAN CORPORATIONS WHEN THEY
OFFSHORE JOBS.
VERY INTERESTING DIVISION
OCCURRED HERE ON THE FLOOR OF
THIS HOUSE.
IT WAS A STRAIGHT UP BILL,
WASN'T COMPLEX, IT WAS ON THAT
ISSUE.
SHOULD AMERICAN CORPORATIONS
CONTINUE TO RECEIVE A TAX BREAK
FOR OFFSHORING JOBS.
THAT WAS THE BILL.
NO RIDERS, NO HIDDEN AYEN DAS,
NO EXTRANEOUS SENTENCES PUT IN.
THIS HOUSE DIVIDED RIGHT DOWN
THE MIDDLE.
THE DEMOCRATS VOTED TO END THE
TAX CUTS, THE REPUBLICANS NOT
ONE REPUBLICAN VOTED TO END
THOSE TAX BREAKS GIVEN TO
AMERICAN CORPORATIONS FOR
OFFSHORING JOBS.
I'M GOING -- I DON'T GET IT,
GUYS.
YOU TALK ABOUT JOBS ALL THE
TIME, YOU TALK ABOUT SMALL
BUSINESSES, AND HERE YOU WANT
TO CONTINUE TO SUBSIDIZE THE
OFFSHORING OF AMERICAN JOBS?
WHAT'S THAT ALL ABOUT?
WE NEVER GOT AN ANSWER.
BUT IT SPEAK DIRECTLY TO THE
POINT YOU WERE MAKING EARLIER
ABOUT POLICY CHOICES.
OUR WORK IS POLICY.
POLICY CHOICES.
ARE WE GOING TO DO THIS OR ARE
WE GOING TO DO THAT?
ARE WE GOING TO CONTINUE TO
SUPPORT AMERICAN CORPORATIONS
FOR OFFSHORING JOBS, GIVING
THEM OUR TAX DOLLARS?
ARE WE GOING TO CONTINUE TO
ALLOW THE OIL COMPANIES TO BE
SUBSIDIZED?
THE WEALTHIEST INDUSTRY IN THE
WORLD TAKES ABOUT $15 BILLION A
YEAR OF YOUR TAX MONEY AND WE
GIVE IT TO THEM.
INDUSTRIES.
THE OIL, THE GAS AND THE COAL
ABOUT $15 BILLION A YEAR IN TAX
SUBSIDIES.
WE DO THAT?
WHY DO WE DO THAT.
YOU RAISE A GOOD
POINT, CONGRESSMAN.
I WENT INTO ONE OF THESE DOLLAR
STORES, I WENT -- WENT SAY
WHICH ONE, I COULDN'T FIND A
NONCHINESE MADE ITEM ON THE
SHELF.
I'D LOVE TO GO
INTO WAL-MART AND FIND MADE IN
AMERICA.
WOULDN'T THAT BE SOMETHING?
I'M A CITY PLANNER
BY TRAINING SO I LOOK AT THE
SPACE IN THESE STORES AND I
THOUGHT, I COULD DO THIS.
I COULD CLEAR ONE OF THESE
AISLES, I COULD CONSOLIDATE
OVER THERE AND I COULD PROVIDE
A PLACE FOR LOCALLY MADE ITEMS
AND LET THE LOCAL ENTREPRENEURS
COMPETE.
BUT GIVE THEM A PLACE ON THE
SHELF AND DON'T MAKE THEM PAY
EXORBITANT FEES.
IT DOESN'T TAKE AN ACT OF
CONGRESS FOR BUSINESS
INNOVATION IN BIG BOX STORES.
MAYBE AMERICA IN SOME WAYS IS
LOSING HER EDGE BECAUSE IF THE
C.E.O.'S IN HARGE OF THESE
RETAIL STORES CAN'T BE CREATIVE
ENOUGH TO FIGURE OUT HOW TO
US ENCOURAGE INNOVATION AT
THE LOCAL LEVEL, WHAT ARE THEY
GETTING PAID SO MUCH FOR?
I THINK OF ALL THE LOCAL FOOD
PRODUCTS, ALL THE HANDMADE
SWEATERS, ALL THE ART WORK, ALL
THE POTTERY, THAT'S MADE
LOCALLY, CAN'T GET TO SHELVES
BECAUSE THEY KEEP THEM OUT.
YOU KNOW, COME ON, MEN AND
WOMEN OUT THERE IN THE RETAIL
WORLD.
SHOW A LITTLE CREATIVITY HERE.
WE HAVE A LOT OF INNOVATION AT
THE LOCAL LEVEL.
A LITTLE BIT OF
PATRIOTISM.
IT TAKES A LITTLE
BIT OF PATRIOTISM.
LET ME GIVE
YOU AN EXAMPLE OF WHAT WE CAN
DO WITH POLICY.
WE HAVE A BUY AMERICA POLICY
MUCH.
THAT'S IN THE BEEN ENFORCED
I INTRODUCED A PIECE OF
LEGISLATION, H.R. 613, THAT
SIMPLY SAYS IF IT'S OUR TAX
MONEY, AND WE PAY THIS EVERY
TIME WE BUY A GALLON OF GAS
LEAN OR GLAN OF DIESEL FUEL, WE
18.5 CENTERS IN
GASOLINE OR 26 CENTS FOR THE
DIESEL FUEL IN TAXES, WHERE'S
THE MONEY GOING?
SOME OF IT, ALL TOO OFTEN, IN
FACT A LOT OF IT, ALL TOO
OFTEN, WINDS UP GOING OFFSHORE.
GIVE YOU AN EXAMPLE.
THE OAKLAND-SAN FRANCISCO BAY
BRIDGE A MULTIBILLION DOLLAR
PROJECT, BILLION DOLLARS WORTH
OF STEEL GOING INTO THAT
BRIDGE.
IT'LL BE A BEAUTIFUL THING WHEN
IT'S COMPLETED.
THE BIDS FOR THAT CAME IN FOR
AN AMERICAN MADE STEEL BRIDGE
BRIDGE.
OR A CHI THESE MADE STEEL
-- A CHINESE MADE STEEL BRIDGE.
A 10% DIFFERENCE IN COST.
THAT'S A LOT OF MONEY.
THE STATE OF CALIFORNIA BRIDGE
AUTHORITY DECIDED TO TAKE THE
10% CHEAPER CHINESE STEEL.
THE RESULT IS, AFTER YEARS,
THAT THE STEEL HAD PROBLEMS,
THE COST WENT WELL ABOVE 10%
WOUND UP IN
CHINA AND ZERO JOBS WOUND UP IN
AMERICA.
SO WHAT THIS BILL DOES, IT
SIMPLY SAYS NO MORE WAIVERS, NO
MORE, IF IT'S AMERICAN MADE, IF
IT'S AMERICAN TAX DOLLARS THAT
ARE BEING USED, IT'S GOING TO
BE USED TO BUY AMERICAN MADE
EQUIPMENT.
BUSES, TRAINS, AND THE STEEL
AND CONCRETE.
IT WORKS.
IN THE STIMULUS BILL, WHICH ALL
OUR REPUBLICAN FRIENDS WANT TO
DISMISS, IN THE STIMULUS BILL
THERE WAS ONE LINE FOR THE
SEVERAL BILLION DOLLARS OF
MONEY THAT WENT INTO TRANSIT
THAT SAID, THAT MONEY CAN ONLY
BE USED TO BUY AMERICAN MADE
LIGHT RAIL, TRANSIT TRAINS AND
LOCOMOTIVES FOR AM TRACK.
SIEMENS OPENED A FACTORY IN
SACRAMENTO, CALIFORNIA TO BUILD
THOSE LIGHT RAIL CARS AND
LOCOMOTIVES BECAUSE THE POLICY,
DRAFTED HERE ON THIS FLOOR,
PASSED BY THE SENATE AND SIGNED
INTO LAW BY PRESIDENT OBAMA,
SAID THAT TAX MONEY CAN ONLY BE
USED TO BUY AMERICAN MADE
EQUIPMENT.
AND IT CREATED HUNDREDS OF
AMERICAN JOBS IN SACRAMENTO,
CALIFORNIA.
THIS BILL AND ANOTHER ONE LIKE
IT THAT'S NOW BEEN INTRODUCED BY
THE RANKING MEMBER, DEMOCRAT IN
THE TRANSPORTATION COMMITTEE,
WILL BRING TENS OF THOUSANDS,
INDEED HUNDREDS OF THOUSANDS OF
JOBS, WHEN OUR TAX MONEY IS
GOING TO BE USED TO BUY
AMERICAN-MADE EQUIPMENT.
YOU KNOW, I WANTED
TO MENTION, AS YOU WERE TALKING,
CONGRESSMAN GARAMENDI, THAT AS A
RESULT OF THE REFINANCING OF THE
U.S. AUTOMOTIVE INDUSTRY, IN
NORTHERN OHIO, FROM CLEVELAND
THROUGH LORRAINE, TOLEDO,
DEFINES, THE WHOLE CORRIDOR,
WHAT WE'RE SEEING IS A
REINVESTMENT IN THE SUPPLIER
CHAIN.
THAT INCLUDES STEEL SUCH AS
REPUBLIC STEEL.
SUPPLY CHAIN IN
THE AUTO INDUSTRY?
SUPPLY CHAIN IN THE
AUTO INDUSTRY.
PEOPLE DON'T REALIZE HOW MANY
JOBS IN AMERICA ARE CONNECTED TO
THE AUTO INDUSTRY.
YOUR STATE OF CALIFORNIA WHICH
MANUFACTURES A LOT OF
SEMICONDUCTORS, HALF OF THE
SEMICONDUCTORS PROCURED IN THIS
COUNTRY GO INTO THE AUTOMOTIVE
INDUSTRY.
IF YOU THINK ABOUT CARPETING,
HALF OF THE CARPETING SOLD IN
THIS COUNTRY GOES INTO
AUTOMOTIVE PRODUCTION.
PLASTICS, GLASS, YOU THINK ABOUT
WHAT'S REALLY IN THERE.
AND AS A RESULT OF WHAT WE WERE
ABLE TO DO HERE, WITH A LOT OF
FLACK FROM ONE SIDE OF THE AISLE
, THOUGH THERE WAS SOME SUPPORT,
WAS TO REFINANCE THE U.S. AUTO
INDUSTRY.
WE JUST HAD AN ANNOUNCEMENT IN
AVON LAKE THAT A TRUCK PLATFORM
WILL BE COMING BACK TO US FROM
MEXICO.
AND SO THAT IS RETENTION OF JOBS
IN AVON LAKE.
IT IS PART OF THE REBIRTH OF
AUTOMOTIVE AND TRUCK
TRANSPORTATION ACROSS THE NORTH.
WE'RE PRODUCING VEHICLES LIKE
THE WRANGELER, ONE OF THE MOST
POPULAR VEHICLES IN THE COUNTRY,
OBVIOUSLY, AND THE NEW CRUISE,
FOR GENERAL MOTORS.
BUT ALL THE SUPPLIER CHANGE,
REPUBLIC STEEL, THEY'RE PUTTING
IN A NEWARK FURNACE, YOU'RE
LOOKING AT THE RESTORATION OF
PRODUCTION.
IT'S COMING SLOWLY, BUT IT'S
COMING.
AND SO WE HAVE TO BE PROUD OF
ACTIONS THAT WERE TAKEN BY THE
GOVERNMENT OF THE UNITED STATES
THROUGH THE ACTION OF CONGRESS
AND BY THE PRESIDENT TO HELP
SAVE ONE OF AMERICA'S INDUSTRIES
THAT IS NOW PAID BACK ITS --
THAT HAS NOW REPAID BACK ITS
LOANS AND IS REHIRING.
LET ME ADD TO
THIS.
THIS WAS A RESULT OF THE
STIMULUS BILL THAT PUT THE MONEY
THERE, IF NEED BE, TO REBUILD
THE CERTAIN SECTORS OF AMERICA.
PRESIDENT OBAMA COURAGEOUSLY AND
WITH ENORMOUS OPPOSITION FROM
REPUBLICANS SAID, I WILL NOT LET
THE AMERICAN AUTOMOTIVE INDUSTRY
DIE.
THIS IS A FUNDAMENTAL INDUSTRY
IN THE UNITED STATES, I WILL NOT
LET IT DIE, AND SO HE AUTHORIZED
THE MONEY THAT WENT TO BAIL OUT
GENERAL MOTORS AND CHRYSLER.
DIDN'T TAKE ADVANTAGE OF IT
BECAUSE THEY HAD A DIFFERENT
FINANCIAL SITUATION.
BUT THE RESULT OF THAT IS
PRECISELY WHAT YOU DESCRIBED,
MS. KAPTUR.
IT'S PRECISELY THE SAVING OF THE
AMERICAN AUTOMOTIVE INDUSTRY AND
ALL OF THE SUPPLY CHAIN THAT
GOES WITH IT.
A VERY COURAGEOUS ACTION BY THE
PRESIDENT.
ONE THAT WORKED.
FOR THE BENEFIT OF AMERICA SO
THAT WE CAN ONCE AGAIN MAKE IT
IN AMERICA.
I KNOW THAT -- I'M GOING TO WRAP
THIS UP VERY QUICKLY BECAUSE I
KNOW YOU HAVE ANOTHER THING --
COUPLE OF OTHER THINGS YOU WANT
TO TALK ABOUT WITH REGARD TO
WALL STREET AND I REALLY WANT
YOU TO HAVE THE TIME TO DO THAT.
AND I THINK WE'VE GOT ABOUT 15
17.
GOOD.
MINUTES?
I GUESS -- THAT GIVES ME TWO
MINUTES TO WRAP UP.
I'D LIKE TO ADD ONE
ITEM THOUGH.
WE CAN GO A
LITTLE LONGER.
BUT WHY DON'T YOU GO AHEAD AND
TAKE YOURS AND THEN I'LL WRAP AT
THE END.
PERFECT.
I JUST WANTED TO SAY A DEEP
THANKS TO CONGRESSMAN GARAMENDI
FOR BRINGING US TOGETHER TONIGHT
AND I WANTED TO SAY AS A MEMBER
OF THE CHINA COMMISSION, WE HAD
FROM VARIOUS
WITNESSES ON THE ECONOMY, ON THE
LEGAL STRUCTURE OF CHINA, ON
DEMOCRACY AND THE LACK THEREOF
IN THAT COUNTRY.
AND ONE OF THE POINTS THAT WE
DISCUSSED WAS HOW CLOSED THE
CHINESE MARKET IS TO PRODUCTS
FROM AROUND THE WORLD.
.
MUCH LIKE JAPAN, MUCH LIKE KOREA
YOU LOOK AT SINGAPORE, MANY OF
THE ASIAN NATIONS KEEP OUR
PRODUCTS OUT.
AND WE'RE ASKING AMERICAN
COMPANIES TO TRY TO COMPETE IN A
SITUATION WHERE OUR MARKET IS
OPEN AND THEIR MARKET IS CLOSED.
CUSTOMERS.
SO WE CAN'T GET ACCESS TO THOSE
AND ONE OF THE POINTS THAT WAS
BROUGHT UP BY ONE OF THE TOP
ECONOMISTS THAT TESTIFIED BEFORE
THE CHINA COMMISSION WAS THE
FACT THAT THE CHINESE GOVERNMENT
BACKS THOSE COMPANIES, REALLY
THE GOVERNMENT OWNS THE
COMPANIES, AND THEY INFUSE
BILLIONS OF DOLLARS.
SO THINK ABOUT THIS.
THE WORKERS AND COMPANIES OF
NORTHERN OHIO AND THE U.S.
AUTOMOTIVE INDUSTRY IS TRYING TO
COMPETE IN A GLOBAL MARKET WHERE
SOME OF THE MAJOR MARKETS IN THE
WORLD LIKE JAPAN ARE CLOSED.
AND THEY'VE REMAINED CLOSED FOR
DECADES.
CHINA DOES NOT WELCOME US IN.
WE ARE LITERALLY COMPETING
AGAINST STATE-MANAGED
CAPITALISM.
IT IS NOT A FREE MARKET.
IT IS NOT A MARKET ECONOMY THAT
WE ARE DEALING WITH.
IT'S VERY CONTROLLED.
AND SO WHEN THERE WAS CRITICISM
BY SOME THAT, OH, GOSH, LOOK AT
CONGRESS, YOU KNOW, THEY'RE
HELPING THE U.S. AUTOMOTIVE
INDUSTRY.
IT SHOWED A LACK OF
UNDERSTANDING OF WHAT THESE
COMPANIES FACE IN THE GLOBAL
MARKETPLACE.
IT IS NOT A LEVEL PLAYING FIELD.
IT IS SIMPLY NOT.
AND UNFORTUNATELY WE HAVE NEVER
HAD A TRADE AMBASSADOR
KNOWLEDGEABLE ENOUGH ABOUT THE
AUTOMOTIVE INDUSTRY, THAT CAME
OUT AGAIN YESTERDAY, WHO CAN
REALLY BARGAIN SUCCESSFULLY TO
GIVE US A LEVEL PLAYING FIELD IN
ONE OF THE MOST IMPORTANT
INDUSTRIES THAT WE HAVE.
LET ME JUST GIVE
YOU ANOTHER EXARM.
I THANK YOU FOR RAISING THAT --
EXAMPLE.
I THANK YOU FOR RAISING THAT
VERY, VERY IMPORTANT ISSUE.
LAST YEAR THIS HOUSE BY AN
OVERWHELMING BIPARTISAN VOTE SET
OUT TO ADDRESS THE CHINA
SITUATION.
AND IT WAS A PIECE OF
LEGISLATION THAT SIMPLY SAID
THAT WHEN ANY GOVERNMENT
ANYWHERE AROUND THE WORLD
UNFAIRLY SUBSIDIZES ITS BUSINESS
SECTOR IN A WAY THAT, TO THE
DERT MEANT OF THE AMERICAN
BUSINESSES -- DETRIMENT OF THE
AMERICAN BUSINESSES, THEN THAT
COUNTRY WILL FACE SANCTIONS.
AND SPECIFICALLY IT HAD TO DO
WITH THE CHINESE CURRENCY.
THE CHINESE CURRENCY IS
SIGNIFICANTLY UNDERVALUED,
PERHAPS GIVING AS MUCH AS A 20%
ADVANTAGE TO CHINA IN ITS
EXPORTS.
BIPARTISAN, IT PASSED HERE, IT
DID NOT PASS IN THE SENATE.
HOWEVER, THIS YEAR, MY REPUBLIC
CLEEL COLLEAGUES WERE NOT -- MY
REPUBLICAN COLLEAGUES WILL NOT
EVEN ALLOW THAT TO COME UP FOR A
PASSED IN THE SENATE.
VOTE HERE EVEN THOUGH IT'S
SO THE CHINESE CURRENCY BILL
PASSED IN THE SENATE, IT'S
LANGUISHING IN THIS HOUSE.
I DO NOT UNDERSTAND WHY OUR
REPUBLICAN COLLEAGUES WANT TO
CONTINUE TO ALLOW CHINA TO HAVE
AN UNFAIR ADVANTAGE.
AND ANOTHER THING, AND I THINK I
WAS GOING TO WRAP UP WITH THIS,
I'LL DO IT IN ABOUT 10 SECONDS.
CHINA SUBSIDIZES TO ITS SOLAR
AND WIND INDUSTRY.
SO MUCH SO THAT THEY HAVE
LITERALLY TAKEN OVER THE MARKET
AND HAVE LED TO THE BANKRUPTCY
OF SEVERAL -- A COUPLE OF
AMERICAN SOLAR MANUFACTURERS,
VOLED ARE A BEING ONE EXAMPLE --
SOLYNDRA BEING ONE EXAMPLE
THAT'S MUCH DISCUSSED HERE BUT
IT'S REALLY AS A RESULT OF
CHINA'S DRIVING DOWN THE PRICE
OF SOLAR PANELS.
THIS BILL, AGAIN ONE THAT I'VE
INTRODUCED AND IT COMES DIRECTLY
FROM MY DISTRICT BECAUSE WE HAVE
A MAJOR WIND FARM AND SOLAR
SYSTEMS THERE, SAYS THAT OUR TAX
MONEY THAT PRESENTLY GOES TO
SUBSIDIZE THE PURCHASE OF SOLAR
SYSTEMS AND WIND TURBINES MUST
ONLY BE USED TO BUY
AMERICAN-MADE WIND TURBINES AND
SOLAR PANELS.
IN OTHER WORDS, BUY AMERICAN,
INDUSTRY.
MAKE IT IN AMERICA, REBUILD OUR
I'M GOING TO JUST WRAP VERY
QUICKLY AND TURN OVER THE
MICROPHONE TO MS. KAPTUR SO SHE
CAN CARRY ON A COUPLE OF OTHER
ISSUES THAT SHE WANTS TO
DISCUSS.
IT'S THE HOLIDAY SEASON.
IT'S THAT TIME WHEN WE THINK
ABOUT OUR FAMILIES, IT'S THAT
TIME WHEN WE THINK ABOUT OUR
COMMUNITY.
AND WE HAVE A REAL OBLIGATION
HERE IN THE HOUSE OF
REPRESENTATIVES TO PUT FORTH
REALLY SOLID LEGISLATION TO
SUPPORT THOSE MEN AND WOMEN AND
FAMILIES IN AMERICA THAT THROUGH
NO FAULT OF THEIR OWN ARE
UNEMPLOYED.
OR HAVING A VERY DIFFICULT TIME
OF MAKING IT IN THE CURRENT
ECONOMY.
AS WAGES ARE DRIVEN DOWN, AS
OPPORTUNITIES FOR ADVANCEMENT
ARE DIMINISHED.
BUT WE HOPE FOR AND WHAT WE PRAY
FOR IS A CONSENSUS, A COMPROMISE
IN THE NEXT COUPLE OF DAYS HERE
ON THE FLOOR OF THIS HOUSE AND
WITH THE SENATE SO THAT WE CAN
PASS LEGISLATION THAT WOULD
ACTUALLY HELP THE AMERICAN
WORKERS.
THOSE THAT ARE UNEMPLOYED.
AND THOSE THAT ARE SEEKING A JOB
OR HAVE A JOB AND UNABLE TO MAKE
IT WITH THAT PAYROLL TAX
DEDUCTION, PUT ANOTHER $1,000 IN
THEIR POCKET.
AND I WANT US TO KEEP IN MIND
THAT IN AMERICA TODAY THERE ARE
1.4 MILLION CHILDREN, 1.4
MILLION CHILDREN THAT ARE
HOMELESS.
JOBS.
THEIR PARENTS HAVE LOST THEIR
THEY'VE LOST THEIR HOME.
THEY'RE SLEEPING IN CARS,
THEY'RE HOMELESS.
THEY MAY BE ABLE TO FIND AN
OPPORTUNITY AT A MOTEL.
TELEVISION.
WE'VE SEEN SOME OF THIS ON
BUT THIS IS IN ALL OF OUR
COMMUNITIES.
EVERY COMMUNITY IN AMERICA HAS
THIS PROBLEM.
AND IT'S UP TO US HERE IN
CONGRESS TO USE WHAT COMPASSION
AND WISDOM WE POSSESS TO FIND
WAYS OF ADDRESSING IT.
WE HAVE SUCH AN OPPORTUNITY WITH
THE PAYROLL TAX DEDUCTION, WITH
THE WELFARE.
AND UNFORTUNATELY THE BILL THAT
PASSED HERE YESTERDAY BASICALLY
WOULD PUT MONEY INTO THE RIGHT
POCKET THROUGH A PAYROLL TAX
DEDUCTION OR AN UNEMPLOYMENT
CHECK AND THEN TAKE IT OUT OF
THE LEFT POCKET WITH AN INCREASE
IN FEES, A REDUCTION IN MEDICAL
SERVICES, THE CLOSE OF CLINICS
-- THE CLOSING OF CLINICS OR
OTHER WAYS IN WHICH THAT MONEY
WOULD BE EXTRACTED.
YES, IT WOULD BALANCE, IT
WOULDN'T INCREASE THE DEFICIT
EXCEPT FOR THE WORKING MEN AND
WOMEN OF AMERICA.
WE THINK THAT'S WRONG.
AND WE'VE OFFERED A DIFFERENT
SOLUTION.
I'D LIKE NOW, I NOTICED THAT MY
COLLEAGUE FROM NEW YORK HAS
COME.
A COUPLE OF SHORT COMMENTS, I
PROMISED MS. KAPTUR THE LAST FEW
MOMENTS OF THIS SO, WELCOME, MR.
TONKO, THE EAST-WEST SHOW IS
BACK IN SESSION.
THERE YOU GO.
REPRESENTATIVE GARAMENDI, THANK
YOU AGAIN FOR LEADING US IN WHAT
IS A VERY IMPORTANT BIT OF
DISCUSSION ABOUT JOB CREATION,
JOB RETENTION IN OUR COUNTRY.
AND I COULDN'T AGREE MORE.
WITH YOUR SENTIMENTS THAT
INCLUDE THIS CONCERN ABOUT
PROVIDING A BENEFIT TO THE
MIDDLE CLASS IN TERMS OF PAYROLL
TAX HOLIDAY EXTENDER.
BUT THEN ALSO ASKING THEM TO PAY
FOR THAT BENEFIT.
SO IT IS LIKE ONE HAND IS
OFFERING AND THE OTHER HAND IS
TAKING FROM OUR WORKING
FAMILIES, MIDDLE CLASS
AMERICANS.
THIS IS NOT THE PRESCRIPTION FOR
SUCCESS.
WHAT HAS BEEN OFFERED BY THE
PRESIDENT IS A PAYROLL HOLIDAY
EXTENDER, TAX HOLIDAY EXTENDER
FOR BOTH EMPLOYERS AND EMPLOYEES
AND THERE ARE MANY SMALL
BUSINESSES THAT STAND TO GAIN,
THE OVERWHELMING MAJORITY OF
EXTENSION.
SMALL BUSINESSES GAIN BY THAT
AND CERTAINLY THE EMPLOYEES DO.
BUT IT WORKS BEST WHEN YOU BRING
LEVERAGE INTO THE EQUATION, THAT
COMES FROM THE SURCHARGE THAT IS
PLACED UPON THE MOST HIGH INCOME
STRATA IN OUR COUNTRY.
AND WHEN YOU LOOK AT THE CHART
IT'S FROM -- CHARTS FROM 1979 TO
THE PRESENT DAY, THERE'S NO
.
DENYING WHAT STATISTICS INDICATE
FACTS CAN'T BE ARGUED WITH.
THERE HAS BEEN THIS EXPONENTIAL
RISE IN THE GROWTH OF INCOME FOR
THE TOP 1% TO ABOUT 250% OF AN
INCREASE.
ALL WHILE FROM 1979 MIDDLE
INCOME AMERICANS HAVE SEEN A
FLATLINING OF THEIR HOUSEHOLD
INCOME AND NOW IT'S EVEN
DIPPING.
SO WHY MESS WITH THIS PROGRESS
THAT HAS BEEN REALIZED, THIS
STEADY CLIMB UPWARD, SLOW BUT
STEADY, FROM AN 8.2 MILLION JOBS
LOST HOLE, WE HAVE CLIMBED
STEADILY, WHY WOULD YOU MESS
WITH THAT OBVIOUS SUCCESS THAT
IS COMING BACK INTO THE ECONOMY,
ALLOW FOR AMERICA'S MIDDLE CLASS
FAMILIES TO MOVE FORWARD AND
ALLOW FOR THAT BENEFIT TO BE
PAID FOR BY SOMEONE OTHER THAN
THE MIDDLE CLASS?
OTHERWISE IT'S GIVING AND TAKING
FROM THE SAME AUDIENCE.
MAKES NO SENSE.
WE STAND BY PROGRESS, WE STAND
BY PROGRESSIVE POLICY, WE STAND
BY OUR MIDDLE CLASS, OUR WORKING
FAMILIES.
LET'S GET IT DONE FOR MIDDLE
CLASS AMERICA.
WITHOUT A STRONG MIDDLE THERE'S
A THERE IS NOT A STRONG AMERICA.
I THANK YOU VERY
MUCH, MR. TONKO, FOR BRINGING
THAT UP.
I'M GOING TO ASK MS. KAPTUR OF
OHIO TO TAKE THE PODIUM HERE AND
TO TELL US ABOUT WALL STREET AND
ADVOCATING.
SOME OF THE REFORMS THAT SHE'S
PLEASE.
I THANK THE
GENTLEMAN FOR YIELDING ME THIS
TIME AND RISE THIS EVENING ON
THE SUBJECT OF M.F. GLOBAL AND A
CLEAR NEED FOR GREATER OVERSIGHT
BY THIS CONGRESS.
MR. SPEAKER, CONGRESS ISN'T
DOING ITS JOB TO INVESTIGATE THE
FRAUD THAT HAS INFECTED OUR
ENTIRE FINANCIAL SYSTEM.
FRAUD PERPETRATED BY WALL STREET
, AND IT HAS HURT THE GLOBAL
FINANCIAL SYSTEM AS WELL.
I THINK THE REASON IS THAT TOO
MANY PEOPLE HAVE FORGOTTEN THAT
GAMBLING WITH OTHER PEOPLE'S
MONEY OFTEN ENTICES VERY
ADDICTIVE PERSONALITIES WHO ARE
INCAPABLE OF SELF-POLICING.
THEY NEED RULES.
THEY NEED LIMITS.
AND THEY NEED OVERSIGHT.
OTHERWISE THEY JUST KEEP GETTING
INTO THE SAME TROUBLE AGAIN AND
AGAIN, HARMING INNOCENT PEOPLE
IN THE PROCESS BY LOOTING THEIR
ASSETS.
THE AMERICAN PEOPLE KNOW THAT
CORRUPTION ON WALL STREET IS
PERVASIVE AND MILLIONS UPON
MILLIONS OF OUR FELLOW CITIZENS
HAVE BEEN HARMED BY IT.
. THE REPUBLICAN LEADERSHIP
HAS FAILED TO AGGRESSIVELY
INVESTIGATE CRIME IN THE
FINANCIAL SERVICES SECTOR.
EARLIER THIS MONTHR I SPOKE
ABOUT BLOOMBERG'S REPORT ABOUT
HANK PAULSEN INAPPROPRIATELY AND
HYPED CLOSED DOORS TIPPED OFF
HIS FORMER COLLEAGUES AT GOLDMAN
HANDFUL OF WALL
STREET INSIDERS HOW FANNIE MAE
AND FREDDIE MAC MIGHT COLLAPSE
AND WHAT STEPS THE GOVERNMENT
MIGHT TAKE, ALL OF THIS OCCURRED
ON THE SAME DAY THAT SECRETARY
PAULSEN LED THE "NEW YORK TIMES"
TO BELIEVE THAT THOSE TWO
COMPANIES WOULD GIVE A SIGNAL OF
CONFIDENCE TO THE MARKETS.
YOU COULD IMAGINE WHAT THOSE
FINANCIAL INSIDERS DID WITH
THEIR INVESTMENTS BEFORE THE
REST OF AMERICA WAS EVEN AWARE.
I ALSO REMINDED MY COLLEAGUES
THAT THE SECURITIES AND EXCHANGE
COMMISSION WAS FINALLY REBUTTED
RECENTLY IN A NEW YORK COURT FOR
SETTLING FRAUD CASES WITH MAJOR
BANKS THAT ALLOWED THE BIGGEST
BANKS TO WALK AWAY BY SIMPLY
PAYING A FEW FINES WITHOUT SO
MUCH AS ADMITTING ANY
WRONGDOING.
I ASK, WHERE IS THIS CONGRESS'
OVERSIGHT OF THESE MOST CRUCIAL
INATIONS THAT HAS HARMED
OUR WORLD SINCE THE MARKET CRASH
IN 2008.
FINALLY AFTER MONTHS AND MONTHS
OF PRESS COVERAGE, CONGRESS IS
TAKING A TAD OF ACTION.
THE AGRICULTURE COMMITTEE HELD
ONE OF THE FIRST HEARINGS WE
HAVE SEEN ALL YEAR, THAT HEARING
CALLED BY REPRESENTATIVE LUCAS
AND RANKING MEMBER PETERSON
BEGAN TO SHED LIGHT ON THE
EIGHTH LARGEST BANKRUPTCY AT
M.F. GLOBAL HOLDING.
ITS MISDEEDS HAVE BEEN WIDELY
REPORTED BUT THEY DESERVE MUCH
CLOSER SCRUTINY, AND WE NEED TO
SUBPOENA THEIR FULL RECORDS AND
TRANSACTIONS THAT LED TO THE
COLLAPSE.
EVEN BEFORE LAST WEEK'S HEARING.
BANKRUPTCY.
WE KNEW THAT MF GLOBAL FILED FOR
CITIZENS IN MY DISTRICT HAVE
BEEN IMPACTED AND HARMED AS OVER
$1 BILLION DISAPPEARED FROM
CUSTOMER ACCOUNTS.
THE "WASHINGTON POST" AND OTHER
PRESS REPORTED WEEKS AGO THAT
THE FIRM'S C.E.O. FORMER
GOVERNOR JON CORZINE PLACED A
$6.3 BILLION DEBT ON THE DEBT OF
SEVERAL EUROPEAN GOVERNMENTS.
THE QUARTERLY RETURN SHOWED $200
MILLION LOSSES, THEY LOST 67% OF
ITS VALUE.
THIS IS NOT JUST THE CASE OF AN
INVESTMENT FIRM BEING LURED BY
THE HIGHER RETURNS OF RISK YEAR
BONDS AS THEY CONTINUE TO PIECE
EVIDENCE, THERE IS CRIMINAL
ACTIVITY.
THIS CASE HAS THE TRAPPINGS OF A
MASSIVE CASE OF FRAUD.
NOW C.M.E. REPORTED WEEKS AGO
THAT MR. CORZINE'S COMPANY
SEPARATE.
VIOLATED TO KEEP ITS ACCOUNTS
AT LAST WEEK'S HEARING, THE
PUBLIC WAS TOLD THAT AS MUCH AS
$1.2 BILLION MAY BE MISSING FROM
SEGREGATED CUSTOMER ACCOUNTS.
THIS ISN'T JUST A CASE OF
MISPLACED MONEY.
THE FINANCIAL CREST HAS BEEN
REPORTING A STAGGERING AMOUNT OF
MALL FEESANCE.
IN AN APARENT EFFORT TO BUY
CHECKS.
TIME, MF GLOBAL SEPTEMBER
MANY OF THOSE CHECKS WE KNOW
BOUNCED.
THEIR REQUEST TO TRANSFER FUNDS
WERE DENIED AND ACCOUNT
STATEMENTS BEING ISSUED.
ACCOUNTS OF PEOPLE RECEIVING
BOUNCED CHECKS GOING BACK AND
FINDING THEIR ACCOUNTS WERE ALSO
ALTERED INAPPROPRIATELY.
IF THIS DOESN'T SOUND LIKE
FRAUD, WHAT IS IT?
THE AMERICAN PEOPLE MUST DEMAND
MORE CONGRESSIONAL OVERSIGHT.
CONGRESS NEEDS TO PRODUCE MORE
INFORMATION.
I ATTENDED LAST WEEK'S HEARING
IN THE HOUSE AGRICULTURE
COMMITTEE.
WHILE SOME IMPORTANT QUESTIONS
WERE ASKED OF MR. CORZINE,
CONGRESS' RESPONSIBILITY HAS
BEEN FAR FROM MET.
ANYONE WHO FOLLOWED THE HEARING
WATCHED AS MR. CORZINE DODGED
QUESTIONS AND PROVIDED HOLLOWED
RESPONSES.
THE "WALL STREET JOURNAL"
PRESENTED AN ASSESSMENT OF HIS
TESTIMONY.
ACCORDING TO "THE JOURNAL,"
GOVERNOR CORZINE DUCKED
QUESTIONS 15 TIMES AND USED A
WELL-KNOWN STRATEGY FOR AVOIDING
ACCOUNTABILITY BY SAYING, I DID
NOT INTEND TO BREAK ANY RULE.
HE APOLOGIZED OR EXPRESSED
REGRET SIX TIMES FOR THE DAMAGE
ON COUNTLESS FAMILIES AND
BUSINESSES, BUT THE FACT IS,
$1.2 BILLION, THAT IS THE AMOUNT
THAT IS MISSING FROM MF GLOBAL
SEGREGATED CLIENT FUNDS WHICH
MR. CORZINE COULD PROVIDE NO
EXPLANATION.
IN FACT, ASTOUNDINGLY, THIS
SEASONNED TRADER PLEADED
IGNORANCE OF WHAT WAS HAPPENING
AT HIS OWN COMPANY.
LET ME MENTION THAT THE
COMMODITIES FUTURES TRADING
COMMISSION, JILL SUMMERS, WHO
TESTIFIED AT THE HEARING, WAS
VERY INVALUABLE TO PUBLIC
UNDERSTANDING.
MR. SPEAKER, I BELIEVE THAT I
HAVE A SPECIAL ORDER AND TIME
REMAINING, MY OWN SPECIAL ORDER
FOR 30 MINUTES?
THE
CHAIR NEEDS TO CONFIRM THAT.
APOLOGIES.
THERE
BEING NO REPUBLICAN TO TAKE THE
HALF HOUR AT THIS TIME, UNDER
THE SPEAKER'S ANNOUNCED POLICY
OF JANUARY 5, 2011, THE CHAIR
RECOGNIZES THE GENTLEWOMAN FROM
OHIO, MS. CAPTURE FOR 30
MINUTES.
LET ME REPHRASE
THIS.
AT THE HEARING, THE COMMODITIES
FUTURES TRADING COMMISSION, JILL
SUMMERS' TESTIMONY WAS
INVALUABLE TO THE PUBLIC.
HER TESTIMONY PLACES THE MF
GLOBAL COLLAPSE IN PROPER
PERSPECTIVE AND I'M QUOTING
DIRECTLY.
HE SAID THEY ARE THE TWO MOST
RECENT FUTURES MERCHANT
BANKRUPTCY.
BROTHERS WAS
MON YOU MEN TALL, COMMODITY
CUSTOMERS DID NOT LOSE THEIR
MONEY AT EITHER FIRM.
IN BOTH STANCE INSTANCES,
CUSTOMER ACCOUNTS WERE INTACT
AND OBTAINED ALL OPEN POSITIONS
AND ALL ASSOCIATED SEGREGATED
COLLATERAL.
THAT BEING THE CASE, CUSTOMER
ACCOUNTS WERE PROMPTLY
TRANSFERRED TO FUTURES
COMMISSION MERCHANTS.
WITH THE COMMODITY CUSTOMERS
HAVING NO FURTHER INVOLVEMENT IN
THE BANKRUPTCY PROCEEDING.
UNFORTUNATELY, THAT IS NOT WHAT
HAPPENED AT MF GLOBAL, BECAUSE
CUSTOMER ACCOUNTS WERE NOT
INTACT.
THE FACT THAT CUSTOMER ACCOUNTS
WERE NOT INTACT AS COMMISSIONER
SUMMERS DESCRIBED IT, MEANS THAT
MONEY.
SOMEONE TOOK OTHER PEOPLE'S
I BELIEVE MOST OF US WOULD CALL
THAT THEFT.
EVEN IF SOME OF THE MONEY IS
RECOVERED BY THE BANKRUPTCY
PROCESS, THAT DOES NOT ALTER THE
FACT THAT THE PROCESS BY WHICH
ACCOUNTS WERE VIOLATED
BROKE THE LAW.
IT IS AN UNDERSTATEMENT TO SAY
THAT MANY AMERICAN FAMILIES AND
BUSINESSES LOST IMPORTANT
INVESTMENTS.
THE MISMANAGEMENT OF THIS ONE
FIRM HAS PUT HUNDREDS OF
PEOPLE'S INVESTMENTS IN
JEOPARDY.
THEY DESERVE ANSWERS.
CONGRESS HAS LEAD RESPONSIBILITY
TO ASK HARD QUESTIONS AND HERE
ARE SOME QUESTIONS THAT DEMAND
REAPPLY.
ON TRANSFERS OF -- REPLY ON
TRANSFERS, CONGRESS MUST
EXERCISE WHO SAID THAT TRANSFERS
AT MF GLOBAL WERE MADE AND I
QUOTE IN A MANNER THAT MAY HAVE
BEEN DESIGNED TO AVOID
DETECTION, SO LET US ASK, SHOULD
THE PERSON OR PERSONS WHO
ATTEMPTED TO AVOID THIS
DETECTION BE HELD ACCOUNTABLE?
AND HOW SHOULD THAT OCCUR?
IT SEEMS UNLIKELY MR. CORZINE IS
NOT RESPONSIBLE.
WHICH PERSON OR PERSONS AT MF
GLOBAL MADE THE DECISION TO
INVADE CUSTOMER ACCOUNTS?
CONGRESS MUST ASSURE FULL
TRACING OF THOSE TRANSACTIONS.
A SECOND GROUP OF QUESTIONS
SHOULD REVOLVE AROUND WHO ARE
THE RESPONSIBLE PARTIES.
IF MR. CORZINE CANNOT RECALL OR
DOES NOT KNOW WHAT HAPPENED AT
MF GLOBAL, AS HE SEEMED TO
CLAIM, WHO SHOULD CONGRESS AND
INVESTIGATORS SPEAK WITH AT MF
GLOBAL TO ASCERTAIN HIS EXACT
ROLE AND THOSE OF OTHER TOP
EXECUTIVES?
WHO'S GOING TO PROBE?
THAT'S THE ROLE OF A
COMMITTEE.
CONGRESSIONAL INVESTIGATIVE
WHO WAS RESPONSIBLE FOR
SEGREGATING CUSTOMER ACCOUNT
FUNDS FROM MF GLOBAL FUNDS.
OVER $1 BILLION DID NOT WALK OFF
ON ITS OWN.
SOME SET OF PERSONS MOVED THOSE
FUNDS AND HIGHLY INPLAUSIBLE
ACTION.
ONE AUTHORIZED THAT
SO WHAT SET OF PERSONS
AUTHORIZED THOSE ACTIONS
EXACTLY?
ANOTHER SET OF QUESTIONS SHOULD
REVOLVE AROUND WHO APPROVED MF
GLOBAL RISK STANDARDS.
MICHAEL ROSE MAP, FORMER CHIEF
RISK OFFICER WHO RESIGNED IN
2011, SAID THAT THE STRESS THAT
MF GLOBAL WAS TAKING WAS TOO
RISKY.
ANY DECISION WAS PRUDENT AT THE
TIME -- AND MR. CORZINE IS
ARGUING -- IS AGAINST THE FACTS
OF HISTORY, BECAUSE MF GLOBAL
WENT BANKRUPT.
CONGRESS NEEDS TO TAKE WHATEVER
STEPS ARE NECESSARY TO FIND OUT
EXACTLY WHO PRESSURED MR.
ROSEMAN TO RESIGN FROM BLOWING
THE WHISTLE FOR THE BEHAVIOR
INSIDE THAT COMPANY.
ANOTHER SET OF QUESTIONS CAN BE
ASKED ABOUT WHAT OTHER FINANCIAL
IN MF
GLOBAL TRADE?
THERE ARE ALLEGATIONS THAT THE
TRANSFER OF $200 MILLION TO JP
MORGAN WAS SUSPECTED BY BANKERS
OF UTILIZING MF CLIENT FUNDS.
TO WHAT EXTENT ARE THESE
ALLEGATIONS TRUE?
AT WHAT POINT CAN WE DETERMINE
THAT WIRE FRAUD WAS COMMITTED,
AND IF SO, BY WHOM AND WHAT
EXTENT?
ALL OF THIS BEGS THE QUESTION OF
WHETHER OR NOT SUFFICIENT
PROTECTIONS WERE EXERCISED FOR
CUSTOMERS TO STOP WIRE FRAUD.
ANOTHER SET OF QUESTIONS CAN
REVOLVE AROUND, WERE ANY INSIDE
PLAYERS AIDING AND ABETTING MF
GLOBAL BEHAVIOR?
WE KNOW THAT CURRENT COMMODITY
FUTURES CHAIRMAN HAS RECUSED
HIMSELF FROM THE CASE.
MR. GINSLER WALKED FOR MR.
AT GOLDMAN SACHS.
THE PUBLIC HAS A RIGHT TO KNOW
WHAT POINT HE HAD ANY REASON TO
BELIEVE THAT THE CUSTOMER
ACCOUNTS AT MF GLOBAL MIGHT NOT
HAVE BEEN INTACT AND HOW DID HE,
HIS AGENCY AND STAFF RESPOND?
DAY BY DAY, HOUR BY HOUR, EMAIL
BY EMAIL.
FINALLY, ACCORDING TO REUTERS,
COMPANIES LIKE COOK INDUSTRIES
REMOVED BILLIONS FROM MF GLOBAL
JUST BEFORE IT FILED FOR
BANKRUPTCY.
HOW DID THAT POWERFUL COMPANY
KNOW WHEN TO TAKE THEIR MONEY
OUT AND WHY DID MY CONSTITUENTS
NOT KNOW WHEN TO TAKE THEIR
MONEY OUT?
COULD, IN FACT, COOK INDUSTRIES,
HAVE GOTTEN THE SAME TIP-OFF
THAT GOLDMAN C.E.O. HAD GIVEN
FREDDIE MAC AND FANNIE MAE
INVESTORS A FEW YEARS BEFORE.
HOW MUCH OF MF'S MONEY WAS NOT
WIRED RIGHTFULLY, BELONGS TO THE
HOLDERS OF SEGREGATED ACCOUNTS
THAT WERE INAPPROPRIATELY TAPPED
BY MF GLOBAL?
HOW DID MY CONSTITUENTS GET FULL
RESTITUTION.
YES, THERE ARE FAR TOO MANY
QUESTIONS, LOTS OF QUESTIONS,
AND FAR TOO FEW COMPLETE
ANSWERS.
YES, THIS CONGRESS NEEDS TO TAKE
WHITE COLLAR CRIME MORE
SERIOUSLY.
WHO WOULD ACCEPT THE EXPLANATION
WHEN THEY SAY, I DID NOT INTEND
TO STEAL.
IT COULD BE $100 FROM THE CORNER
GAS STATION.
HOW CAN THAT BE ACCEPTABLE?
RIGOROUS INVESTIGATION MATTERS.
CONGRESS NEEDS MORROW BUS
HEARINGS.
WE NEED MORE THOROUGH
INVESTIGATIONS.
WHAT SHOULD CONCERN AIL OF US IS
THAT THE FINANCIAL INDUSTRIES,
FRAUD AND I AM PRUDENTENS, YES,
ADDICTIVE BEHAVIOR IS NOT
LIMITED TO A CASE HERE OR THERE.
FRAUD HAS BECOME SYSTEMIC.
IS INDEMOCRATIC.
IT HAS HARMED OUR NATION AND
HURT MILLIONS OF PEOPLE ACROSS
OUR COUNTRY AND THE FINANCIAL
SYSTEMS OF OTHER COUNTRIES.
IN 2009, THE F.B.I. TESTIFIED
BEFORE THE HOUSE JUDICIARY
COMMITTEE THAT THE CURRENT
FINANCIAL CRISIS AND I'M QUOTING
DIRECTLY, HAS PRODUCED ONE
UNEXPECTED CONSEQUENCE, IT HAS
EXPOSED PREVALENT FRAUD SCHEMES
THAT HAVE BEEN THRIVING IN THE
GLOBAL FINANCIAL SYSTEMS.
THEY AREN'T NEW BUT HITTING THE
ECONOMY HARD AND THE PUBLIC IS
HURTING AS A RESULT OF MARKET
DETERIORATION.
WHAT A TRUE STATEMENT.
REGRUTFULLY, THIS ISN'T --
REGRETFULLY, THIS ISN'T THE
FIRST TIME.
INDEED THE CRIMES AND ADDICTIVE
BEHAVIOR SEEMS TO BE GETTING
BIGGER AND NOT SMALLER.
IN THE 1980'S, IT WAS THE
SAVINGS AND LOAN CRISES AND
F.B.I. RESPONDED WITH 1,000
AGENTS AND FORENSIC EXPERTS
BASED IN 27 CITIES.
YOU KNOW HOW MANY THEY HAD OVER
HERE WHEN THIS STARTED?
45.
YOU CAN COUNT THEM ON YOUR OWN
HANDS.
PERPETRATORS WEPT TO JAIL BACK
THEN, BUT RATHER THAN THIS
CONGRESS IGNORING -- THIS -- THE
CONGRESS AT THAT TIME IGNORED
THE WARNING OF WHAT HAD HAPPENED
AND MAKE EVEN A BIGGER GREEN
LIGHT DURING THE 1990'S TO MORE
ABUSE BY REMOVING THE RULES OF
THE ROAD FOR BANKING DURING THE
1990'S, EXAMPLE, THE UPENDING OF
ALLOWING BANKERS AND SPECULATORS
TO BE IN THE SAME COMPANY AND
.
LOOK AT WHAT HAPPENED.
IN 2000 THE UNDERMINING OF THE
DERIVATIVE REGULATION BY THIS
CONGRESS LED TO WALL STREET'S
BULLISH PLUNDER THAT WE ARE NOW
EXPERIENCING AGAIN, THE RESULT
2000'S.
OF ADDICTIVE BEHAVIOR OF THE
YOU KNOW, WHEN YOU GO BACK TO
THE SAVINGS AND LOAN CRISIS,
THAT WAS MUCH SMALLER THAN WHAT
WE ARE ENDURING TODAY.
THAT IS WHY I HAVE A
STRAIGHTFORWARD BILL, H.R. 1350,
THE FINANCIAL CRISIS CRIMINAL
INVESTIGATION ACT.
IT AUTHORIZES AN ADDITIONAL
1,000 AGENTS AND FRIEND SI SICK
EXPERTS FOR THE WHITE AND
FORENSIC EXPERTS TO INVESTIGATE
AND PROSECUTE THESE FINANCIAL
CRIMES.
I ENCOURAGE ALL OF MY COLLEAGUES
TO JOIN ME AS A CO-SPONSOR.
THE BUREAU DOES NOT HAVE
ANYWHERE NEAR THE RESOURCES IT
NEEDS TO TAKE ON CRIMES OF THIS
MAGNITUDE AND DIMENSION.
CONGRESS HAS LONG DEBATED WHAT
LEVEL OF REGULATION IS NEEDED TO
RESTRAIN FINANCIAL ADDICTS.
THERE SHOULD BE NO DEBATE ABOUT
THE LAW, TO
RECOVER INNOCENT PEOPLE'S MONEY,
TO PROSECUTE THE ADDICTED
GAMBLERS, TO SET A STRICT
STANDARD OF BEHAVIOR IN THE
FINANCIAL SECTOR SO IT SIMPLY
NEVER HAPPENS AGAIN SO, THAT WE
CAN RESTORE CONFIDENCE AND
REGULAR ORDER, NOT INSIDER
ABUSE, TO AMERICA'S FINANCIAL
MARKETS.
I THINK THIS CONGRESS HAS AN
AWESOME RESPONSIBILITY TO DO ITS
JOB.
AND IT SHOULD NOT FEAR ANYONE.
THE COMMITTEES OF THIS HOUSE
SHOULD BE WORKING OVERTIME TO
PROBE THE TRUTH, TO FIND THE
TRUTH, TO GET AT THE TRUTH OF
THOSE WHO HAVE HARMED AMERICA.
THAT HAVE PUT SO MANY MILLIONS
OF PEOPLE OUT OF WORK.
WHERE SO MANY HOMES HAVE BEEN
FORECLOSED THAT THE PROPERTY
VALUES OF THIS COUNTRY CAN'T
EVEN FIND THEIR FOOTING AT THIS
IT'S AFFECTING CAPITAL
POINT.
FORMATION, IT'S AFFECTING THE
ABILITY OF LOCAL BANKS TO MAKE
LOANS BECAUSE THEY'RE NOT SURE
OF WHAT'S GOING TO HAPPEN TO
VALUATION ON THEIR BOOKS.
WHAT COULD BE MORE SERIOUS THAN
THE COMMITTEES OF THIS CONGRESS
DOING THEIR JOB?
I WANT TO COMMEND CONGRESSMAN
LUCAS OF OKLAHOMA, I WANT TO
COMMEND CONGRESSMAN PETERSON OF
MINNESOTA.
WOULDN'T IT BE WONDERFUL IF THEY
COULD CONTINUE THEIR IMPORTANT
WORK, BUT THAT THE OTHER
COMMITTEES OF THIS CONGRESS THAT
HAVE RESPONSIBILITY FOR
OVERSIGHT, GOVERNMENT OVERSIGHT
AND REFORM, THE JUDICIARY
COMMITTEE, THE FINANCIAL
SERVICES COMMITTEE, THE ENERGY
AND COMMERCE COMMITTEE, WERE
ACTUALLY TO DO THE WORK THAT
NEEDS TO BE DONE, TO PUT THIS
COUNTRY'S BANKING AND FINANCIAL
SYSTEM BACK IN A DECENT POSITION
WITH PRUDENT RULES AND TO
FINALLY QUASH THE ADDICTIVE
BEHAVIOR THAT HAS BROUGHT OUR
COUNTRY TO THIS VERY DANGEROUS
POINT?
MR. SPEAKER, I THANK YOU VERY
MUCH FOR THE TIME THIS EVENING.
I THANK MY COLLEAGUES AND THOSE
WHO ARE LISTENING AND I YIELD
BACK MY REMAINING TIME.
THE
GENTLEWOMAN YIELDS BACK.
PURSUANT TO CLAUSE 12-A OF RULE
1, THE HOUSE STANDS IN RECESS
SUBJECT TO THE CALL OF THE
CHAIR.