[Congressional Record Volume 160, Number 155 (Tuesday, December 16, 2014)]
[Senate]
[Pages S6908-S6909]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNANIMOUS CONSENT REQUEST--S. 1898
Ms. WARREN. Mr. President, I came to the floor last week to ask a
simple question: Who does this government work for? Does it work only
for the billionaires and the biggest corporations or does it work for
all of us?
I asked that question last week as Congress considered the government
funding bill--a bill that included a completely unrelated provision
literally written by Citigroup lobbyists that increased the risk of
future taxpayer bailouts just so the biggest banks in this country
could rake in more profits. Sadly, that bill was just the latest
example of how the government works just fine for those who have
already made it.
In the past few years, Federal agencies have entered into a number of
major settlement agreements with big banks and other large corporations
after those companies have broken the law. These agencies have touted
these settlements as being worth millions or in some cases billions of
dollars. That sounds like a great deal for taxpayers, but often that
sticker price is much higher than the actual value at the settlement.
Agencies have often permitted corporations to deduct the cost of the
settlement from their taxes, which can cut the actual value of the
payment by more than 30 percent. And instead of requiring corporations
to actually pay the full settlement amount, agencies often give
corporations credits toward the settlement amount for taking certain
actions--actions the corporations would have taken even if the
settlement had never existed. By structuring the settlements this way,
agencies can get credit for being tough on corporate wrongdoers even
when the actual deal paints a much different picture.
In January I introduced a bill with Senator Coburn to shed more light
on this kind of backroom dealmaking. This bipartisan bill, the Truth in
Settlements Act, is pretty simple. It just requires Federal agencies to
publicly disclose certain basic information about the major settlements
they enter into with corporations--information such as whether a
settlement is going to be tax deductible or whether it lets companies
claim credit for things they are already doing. That is pretty much it.
The idea behind the bill is straightforward. If the government is
going to cut deals on behalf of the American people, the American
people are entitled to know what kind of a deal they are getting. That
is the only way the public can hold agencies accountable.
The Homeland Security and Governmental Affairs Committee approved the
Truth in Settlements Act in July without any objections from any
Democrats or any Republicans. The CBO found the bill wouldn't cost
taxpayers a single dime. This is a nonpartisan, commonsense measure
that simply brings more transparency to
[[Page S6909]]
critical actions the government takes on behalf of the public.
Accordingly, I ask unanimous consent that the Senate proceed to the
consideration of Calendar No. 566, S. 1898; that the committee-reported
substitute amendment be agreed to; the bill, as amended, be read a
third time and passed; and the motion to reconsider be considered made
and laid upon the table with no intervening action or debate.
The PRESIDING OFFICER. Is there objection?
Mr. TOOMEY. Mr. President, on behalf of Senator Cornyn, I object.
The PRESIDING OFFICER. Objection is heard.
Ms. WARREN. Mr. President, I am disappointed but not surprised that
there is an objection to this request because although there is
bipartisan support for this bill and only one outside group has raised
concerns--that group is the U.S. Chamber of Commerce, a powerful
lobbying organization that represents the interests of large
corporations. The chamber's concern about this bill demonstrates just
how much the interests of these giant corporations that break the law
conflict with public interests.
In its letter opposing the bill, the Chamber wrote that the bill
``would remove the incentive for investigation targets to settle and
force the government to expend more resources to prove its assertions
in court.'' Think about that for a second. The chamber's position is
that agencies shouldn't disclose basic facts about settlement
agreements to the public because if the public were aware of those
facts, they would demand more accountability for corporate wrongdoers.
The chamber's position boils down to this: Let's keep the details of
these agreements hidden from view so that corporate wrongdoers don't
have to worry about any real accountability for their illegal actions.
That sounds great if you are a big company that breaks the law, but I
don't think it sounds great to the American people. I think the
American people are tired of seeing large corporations break the law
and then negotiate sweetheart deals behind closed doors.
While we will not be able to pass the Truth in Settlements Act this
Congress, I will be reintroducing it in the next Congress, and I will
continue to fight for the public to get access to the details of these
agreements because we weren't sent here to work for big companies and
to protect them from accountability when they break the law; we were
sent here to stand up for everyone.
Mr. President, I yield the floor.
The PRESIDING OFFICER. The Senator from New Hampshire.
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