[Congressional Record Volume 155, Number 105 (Tuesday, July 14, 2009)]
[House]
[Page H8071]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         GOVERNMENT REGULATION OF THE FINANCIAL SERVICES SECTOR

  The SPEAKER pro tempore (Mr. Maffei). Under a previous order of the 
House, the gentleman from Connecticut (Mr. Himes) is recognized for 5 
minutes.
  Mr. HIMES. Mr. Speaker, I rise to address the House this afternoon 
because, like so many Members of this body, I am engaged in a terribly 
important exercise of working to think through the next generation of 
regulation that will oversee the stability and health of our financial 
services sector. This is a terribly important and challenging thing 
that we do. We need to make sure that we do what is necessary to have a 
vibrant, innovative, thriving financial services sector that employs 
the people of Connecticut and the people of this Nation, that pays 
taxes in Connecticut and to this Nation, but that we toe the line in 
such a way that we never find ourselves in the position that we are in 
today of tens and hundreds of billions of taxpayer dollars being 
brought to the table to bail out a private industry that took too many 
risks.
  And I rise this evening because I am concerned by the conclusion 
being drawn by some of the Members of this House, because our 
regulatory apparatus which, let's face it, was crafted in the 1930s, 
failed in many respects. And, boy, did it fail in some spectacular 
aspects. The conclusion seems to be drawn that government cannot 
regulate, that we should get out of the business, that we should leave 
the financial services sector entirely to its own devices, that somehow 
individual responsibility alone will create a stable and vibrant 
financial services sector.
  And so I want to hearken back to the history of this body and this 
government crafting smart regulation. Think back 110, 120 years ago. 
American families ate rotten food. They bought snake oil in the guise 
of pharmaceuticals. They worked in factories that burned down and 
killed hundreds. They lived in cities that were unsanitary.
  And over 120 years, 110 years, maybe starting with the fine 
Republican, Teddy Roosevelt, this Nation said we can do better. We can 
put in place smart regulation that protects our citizens and that adds 
to the quality of life of every American family. And, in fact, that is 
what happened, and we haven't gotten it quite right. There have been 
spectacular failures. But over that 120 years, the efforts of this 
government to craft smart, efficient regulation hasn't destroyed the 
economy.
  The economic growth in this country over that period of time has been 
nothing short of spectacular. But it has protected American families. 
Very few families anymore buy snake oil, buy securities that would put 
Madoff's securities to shame, find themselves working in factories that 
burn down and nobody gets out because the doors are locked. 110 years, 
120 years of success, not unadulterated success. There have been 
failures. But over time, the efforts of this country to put in place 
smart and efficient regulation have helped this economy and have helped 
the quality of life of American families.
  And that is what we must do. We must not shrink from the task just 
because the SEC blew it on the Madoff case or because other regulators 
weren't watching new and dangerous markets closely enough. We must not 
shrink from the task of thinking through what new round of financial 
regulation allows that industry to thrive, allows that industry to 
provide credit to American families, to small businesses, to allow our 
economy to grow, but which never, ever puts us in the kind of risky 
position that we're working so hard to dig ourselves out of right now.
  We can do this. There's a century-long tradition of our working 
constructively in that direction. So I know we can do this. The answer 
is smart, efficient, modern regulation for the benefit of everyone and 
the benefit of this economy.

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