[Congressional Record (Bound Edition), Volume 154 (2008), Part 15]
[Senate]
[Pages 20058-20060]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              THE ECONOMY

  Mr. BOND. Mr. President, I thank our leaders and the members of the 
relevant committees for coming up with the extenders package. That is 
good news. But I come here today to talk about some very difficult news 
this country is facing, and that is our country's financial crisis.
  We have heard lots of people who are very much concerned about the 
details and why we are doing it. As the majority leader announced, this 
is being addressed in the Senate Banking Committee today by Secretary 
Paulson and others. He also noted that the former Speaker of the House 
has come out and said there is no rush; that we don't need to deal with 
this expeditiously. We do need to deal with this. We need to deal with 
this because the credit markets are frozen, the stock market is 
tanking, and the financial system is facing a stone age.
  Now, this doesn't just affect some well-known companies on Wall 
Street

[[Page 20059]]

and in major areas, it affects every one of us in our personal 
finances, in our jobs, and in our homes. It is a question of if we go 
to the ATM, will we get money out? If we have a home mortgage, can we 
get it refinanced? Could we get a new mortgage? If you are a small 
business, can you roll over your credits? If you are a farmer, can you 
get your operating loans for the next year? If you are an employee, can 
your business get the money it needs through the financial system to 
keep your job going or even to create new jobs?
  We must respond to this financial crisis quickly, but we also must 
respond responsibly. We should not just throw money at the problem. We 
must also demand increased accountability, increased oversight, and 
increased transparency so the taxpayers and our financial system are 
never put in this position again.
  Back in Missouri this weekend, and on the telephone since, I have 
heard from seniors worried about their retirement accounts, parents 
worried about their children's college savings, families worried about 
their checking accounts, and small businesses and homeowners worried 
about their mortgages. Folks across the Nation are worried about what 
this financial crisis means to their financial security. Missourians 
are worried about how this crisis on Wall Street is hitting hard on 
Main Street and throughout the State, from cities to farms to homes. 
They want to know the job loss hitting Wall Street traders will not 
cripple small-town job sites, the city workplaces, and homes across the 
State.
  But they also wish to know that the politicians, the elected 
officials, are protecting their tax dollars and not just bailing out 
those who made bad decisions with no consequences. Folks at home face 
accountability every day. At home, if you screw up and lose a lot of 
money, you lose your job. And you certainly don't get paid to leave. At 
home, when people make mistakes, you don't throw a lot of money at them 
and not ask for anything in return or no change in their ways. We need 
to come together to end this crisis but also to make sure it does not 
happen again.
  Last week, I spoke on the Senate floor and asked my colleagues to do 
that, to come together and work in a bipartisan way for American 
families during this financial crisis. There are long-term remedies and 
changes we must make. I don't know if we can get them done because 
right now the fire departments have called on us for more flame 
retardant, and we need to move to provide the flame retardant to stop 
this crisis from raging across the country.
  As soon as we do that, however, we need to change the other aspects 
of the regulatory system that allowed this blaze to get out of control. 
Now, some of that was mandated by Congress; some of it was a failure to 
exercise oversight; some of it was judgments made a long time ago which 
turned out not to work in these critical times. But it is absolutely 
essential we come together on this measure and work with bipartisan 
cooperation and understanding and communicating with our constituents. 
It is critical that Americans see Democrats and Republicans avoid the 
``blame game'' and, instead, work toward solutions.
  We are seeing that happening already. Secretary Paulson is working 
with congressional leaders of both parties on his plan. He is 
testifying before the Senate Banking Committee right now. In addition 
to bipartisan cooperation, this crisis demands the action be bold and 
swift.
  I believe the free market system is the best in the world, but it 
must have reasonable regulation. There are times when we must take 
temporary emergency action to get us through the rare crisis. This is 
one of those rare moments. This is an emergency crisis. On Friday, 
Treasury Secretary Paulson proposed bold action. Since his 
announcement, we have been getting details about the administration's 
plan to stabilize the financial and housing systems now in crisis and 
get at the root causes of the problem. The plan outlines a change from 
the ad hoc process we have been seeing to a comprehensive systematic 
approach. I agree we need a bold and comprehensive plan to get to the 
heart of the problem and get the economy back on its feet so it can 
again start growing and creating jobs for the American people as soon 
as possible. At the same time, a bold plan is not enough. We must also 
have a responsible plan. We cannot just throw money at this problem. 
Any plan that Congress adopts must ensure accountability, oversight, 
and transparency. It is our responsibility as elected officials to 
demand accountability so we do not reward those who made bad decisions.
  It is our responsibility as elected officials to demand greater 
oversight so the taxpayers and the overall economy are protected. It is 
our responsibility as elected officials to demand transparency so 
people can have trust in our financial system and know their money is 
safe.
  That is why I am preparing amendments to increase taxpayer 
protection. These protections should be a larger part of the Treasury 
Secretary's mandate. I am working on amendments that increase 
accountability by giving the Secretary specific powers to reduce 
executive compensation and eliminate golden parachutes. We did it in 
the Fannie Mae bailout and we can do it again.
  We need to give the Secretary the power to take some equity in the 
bailed-out firms. We not only need to take the toxic paper off their 
hands--in what I trust will be below-market value for which we can sell 
the paper--but we need to take some equity so, if our infusion works, 
as I believe it must, and the company grows, we as taxpayers will get a 
return on that equity. American families should not have to pay fat 
bonus checks for failed CEOs and golden parachutes, and it should not 
expect bailed-out firms to be giving obscene executive compensation.
  I also am preparing an amendment to increase transparency. We need to 
increase disclosure requirements for mortgage-backed securities and 
related derivatives so we are not again caught by surprise. As I said 
last week, we need to make sure all mortgage originators are 
appropriately regulated. Right now, we regulate the banks and the 
savings and loans but not the people who offer loans outside those 
institutions. They need to be regulated. If firms refuse to participate 
voluntarily in the program we pass in the Congress, then we need to 
consider giving the Secretary the power to resolve those bad situations 
and not let them linger for another round of crisis.
  Now, there has been talk--and there will be plenty more--about the 
need to pass a clean rescue package. But once again I say we need to 
act quickly, and we shall act quickly, but there is plenty of time to 
take a day and consider these types of amendments. We cannot write a 
$700 billion blank check, hand it over to unelected officials and not 
ask for any accountability. I believe if we do this properly, the cost 
will be far less.
  I heard a commentator on CNBC saying yesterday that if they do it 
right, the taxpayer may even gain a little bit of money for it. Don't 
count on that. But if we do it properly, if the Treasury sets up a 
system where they have the appropriate people contracted out under 
strict oversight, with accountability and incentives to take these 
failed mortgages at below the value of the underlying homes--not the 
market value, which may be zero--and then resell them and also take a 
slice of the equity of the firm from which they acquire those loans, 
then the price should be many times less than $700 billion. We have to 
do that, but we must act now.
  We must act boldly to protect the economy, to protect our homes, our 
jobs, and our communities throughout the Nation. We must protect 
Americans' bank accounts, savings accounts, and retirement plans. We 
also must protect the taxpayer. I urge my colleagues to work in a 
bipartisan way, to come together on a sound plan, and to do it as 
quickly as we can. Don't rush it so much that we don't include the 
oversight, the accountability, and transparency. Include those elements 
and get it done now.

[[Page 20060]]

  I yield the floor, and I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. COBURN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

                          ____________________