[Congressional Record Volume 156, Number 56 (Tuesday, April 20, 2010)]
[Senate]
[Pages S2434-S2435]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FINANCIAL REGULATORY REFORM
Mr. REID. Madam President, Wall Street reform is very complex. Few of
us are experts in derivative trading or credit default swaps or even
the intricacies of securities. But the principle before us is a very
simple one, in spite of all these very complicated issues that will be
in this bill. You either believe we need to strengthen oversight of
Wall Street or you don't. You either believe we need to strengthen
protection of consumers or you don't. I believe in those principles and
in fixing what is broken.
That is what this good reform will do. It will enforce the strongest
protections ever against Wall Street greed. It will give families more
control over their own finances and give consumers more clarity so they
can make right financial decisions. This legislation would guarantee
taxpayers that they will never again be asked to bail out a big bank.
It will also ensure no big bank can become too big to fail and shield
families' life savings from Wall Street gambling. It will make the
system more transparent so we can catch bankers' excesses and then hold
them accountable.
Our bill contains Republicans' ideas and Democratic ideas. It is good
for consumers and for everyone who favors economic security over
reckless risk-taking.
As I said, some elements of this reform are complicated. There is one
part that is especially hard to follow. Similar to the most complex
commodity, Republican reaction to cleaning up Wall Street is hard to
understand.
This bill will bring to the floor the result of months of bipartisan
meetings, investigations, negotiations, and consensus building. Our
Republican colleagues, in spite of the fact that they have been
involved in much of the negotiation, investigations, and consensus, are
pretending this is a partisan effort.
I am happy to hear my counterpart, my friend, Senator McConnell, the
Republican leader, talk about the need for more negotiations. We don't
stand in the way of that. That is fine. This bill, when it comes to the
floor, is going to be open to amendment, amendments by Democrats,
amendments by Republicans. That is the way it should be. So no one
should think the bill that comes to the floor is the final product.
There will be amendments.
Some people strongly believe the bill from the committee is too weak,
some believe it is just right, some believe it is too strong. So we
need to make sure everyone understands this bill is not a final
product. That is why I hope my friends on the other side of the aisle
are going to let us bring this bill to the floor. Remember, there are
only 59 of us, so if a single Republican is not willing to join with
us, there will be no Wall Street reform. The Republicans will have
killed Wall Street reform.
I am confident that is not what will happen. I read very closely the
letter that was signed by 41 Republican Senators. I received a copy of
it on Friday. There is not a sentence in that letter that says we are
going to vote against moving to proceed, and I was happy to read that.
They said they wanted more negotiations and there have been more
negotiations. Senator Dodd and Senator Shelby--Dodd, the chairman, and
Shelby, the ranking member--spent hours yesterday working on this bill,
and that is the way it should be. The bill we will bring to the floor
puts an end to taxpayer-funded bailouts. Let's all agree on that. It
protects consumers. Let's all agree on that. But our Republican friends
insist on pretending, in conversations I have heard on the floor, that
it doesn't protect consumers and it doesn't put an end to taxpayer-
funded bailouts.
We know Wall Street doesn't like the bill. That should speak volumes.
It doesn't like this bill. Of course it doesn't. Look at the rules of
the road on Wall Street. They get to take your money, money that is not
their own, and gamble it away with little risk and large reward.
I was, for 4 years of my life, chairman of the Nevada Gaming
Commission, and that is not hunting animals; it is gambling. During
those times, we had some very difficult issues dealing with gambling,
with gaming. But I understood a lot about poker and 21 and roulette and
other such things. But it was, on its face, a gamble. What they are
doing on Wall Street, we should have the Nevada Gaming Commission come
to regulate a lot of it because it is nothing but a gamble. That is
what we are trying to do here, bring a semblance of finality and
stability to what is going on there on Wall Street.
I again say it. Look at the rules of the road on Wall Street. They
get to take your money--it is not their money--and gamble it away with
little risk and large reward. It would be as if I asked a Senator from
Georgia to go to Las Vegas with me and I will gamble away all his
money, but I get part of the money for doing nothing other than telling
him we are in Las Vegas.
There are many who do not want us to touch a system that has let them
take our homes, take everything we have. They don't want us to touch a
system that has let them take their winnings and ask taxpayers to save
them from their losses. It is a pretty good deal. They can get all the
money they can--that is not their own--and if they profit, fine; if
they lose something, that is too bad, even though it is not their money
they are losing, even though they are losing somebody else's. Wall
Street knows, if we don't act, they will not be held accountable for
their mistakes, and if things don't go their way, they know they will
get a mulligan; that is, they can start over. That is the way the
system worked when our economy teetered on the brink of collapse and
that is the way the system still works today. We have to change that.
That is what we have to change. With this Wall Street accountability
bill, we will. That is what this is about. It is a Wall Street
accountability bill.
Let's bring this matter to the floor and offer amendments. Let's not
be threatening filibusters on different parts of the bill. Let's go
back to the way we used to do things. Let's bring an amendment to the
floor, let's vote on it, whoever gets the most votes wins, whoever
doesn't get the most votes loses, and move on to the next amendment.
It is puzzling why my Republican friends are pretending that this
bill to fix Wall Street is good for those who
[[Page S2435]]
benefit from the fact it is broken. Similar to the bankers themselves,
it seems a number of Republicans care more about making short-term
gains than they do about doing what is right for this economy in the
long run. Some details of this debate might be complex, but the
different sides are as clear today as could be. On one side are
consumers and investors, families and businesses and the vast majority
of Americans who want us to make sure the financial crisis they just
lived through can never happen again.
That is our goal. They knew there was no regulation, minimal
regulation, and those people on Wall Street took advantage of that.
They were betting on things that would make famous Nevada gamblers
blush.
They don't want us to just talk about it, they want us to do
something about it. We have to decide who is on whose side here,
because we are ready to act. On one side are those who want to make
sure we never have a situation like we had before. On the other side we
have Wall Street bankers. They are doing pretty well. Two major Wall
Street banks reported profits between them of about $7 billion last
quarter. I don't begrudge them making money. That is good. People in
our great free enterprise system can make money. I am just saying we
have to have rules that don't allow them to cause another problem, as
we had, which is second only to the Great Depression. Some say it is
worse. These Wall Street bankers are sitting very comfortably. They see
nothing wrong with a system that privatizes their gains and socializes
their losses. They don't want us to change a thing. Let's decide that
we, Democrats and Republicans, are on the side of consumers and
investors, families and businesses, and the vast majority of Americans
who want us to make sure the financial crisis they just lived through
can never happen again.
Those who think this legislation is bailing out Wall Street should
look at it again. Let's move forward in a bipartisan manner to get this
bill done as quickly as possible, go to conference with the House, have
the President sign the bill. The sooner we do that, the more stable our
economy will be, not only here in America but worldwide.
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