[Congressional Record (Bound Edition), Volume 154 (2008), Part 16]
[Senate]
[Page 21686]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          WALL STREET BAILOUT

  Mr. KOHL. Madam President, today we are facing a historic economic 
crisis. We have been told by the Secretary of Treasury and the Chairman 
of the Federal Reserve that we stand on the edge of a financial cliff 
and that we are looking down on a potential disaster that this country 
has not seen since the Great Depression. We have seen historic 
financial firms and banks with household names swept away in a matter 
of weeks. These massive changes have left the American people worried, 
confused, and angry.
  In the wake of this chaos on Wall Street, the administration has come 
to Congress with a plan they believe will calm the storm. They came to 
us with few details--only three pages. They told us we need to move 
immediately, that delay was dangerous. We were told that oversight of 
the bailout would be a burden and just slow everything down. We were 
told to hand over the money and simply get out of the way.
  The administration asked the American people for a $700 billion blank 
check. Wall Street and the administration are asking hard-working 
Wisconsinites to bail them out, to buy assets that no one wants, to go 
further into debt to China so that banks and financial institutions can 
avoid bankruptcy. My constituents, the people of Wisconsin, cannot 
understand how we got to this point and why they should be asked to 
foot the bill. They are furious, and I do not blame them.
  I share their anger. As a businessman, I am shocked and appalled that 
the supposed best and brightest on Wall Street allowed their companies 
to purchase dangerous assets they did not understand, that these people 
gambled with the money of millions of Americans, and now they expect 
those same Americans to come to their rescue.
  These supposed titans of Wall Street owe the American people an 
explanation. We are being asked for the staggering sum of $700 billion, 
but not one CEO has come to Capitol Hill to apologize for their part in 
creating this awful mess. To add insult to injury, when Congress tried 
to limit CEO compensation for firms that would benefit from the plan, 
the administration resisted. They had the nerve to ask my 
constituents--who make about $48,000 per household--for money while 
they keep their multimillion-dollar salaries.
  I think these CEOs need to come before Congress and explain how we 
got into this mess--and to explain their role. Now, I know they are not 
solely to blame. Regulators were asleep at the switch, the 
administration believed in letting markets run wild, Fannie Mae and 
Freddie Mac overextended themselves, and Congress failed to do adequate 
oversight. But as a businessman who firmly believes in markets, I am 
stunned that Wall Street engaged in the behavior that led us to this 
point.
  I hope Congress will call some of these CEOs who are most involved in 
this meltdown to testify. The American people want to hear from them. I 
think they owe us all an apology. They should also explain what they 
plan to do in the future to make sure we never end up in this kind of 
crisis again. They should tell us what kind of regulations they think 
are necessary to avoid another crisis. It is the least they can do in 
exchange for the risks the American people are being asked to absorb on 
their behalf.
  We have yet to see the details of this final bailout package. I am 
reserving judgment. I understand the delicate situation we are in and 
the risks we face, but I am wary of being rushed into a quick decision. 
I would prefer a solution that does not provide the $700 billion all at 
once but provides part of it now and more later, if necessary. We can 
reconvene and raise the amount at any time with short notice, so I do 
not see the necessity of providing everything upfront. Any bailout 
needs rigorous oversight. We must limit CEO compensation, and it should 
also give the taxpayers a chance to share in any profits that may 
result.
  This is not our money we are handing to Secretary Paulson. It is the 
taxpayers'. I never forget who I am working for, and the people I serve 
are furious they are being asked to give $700 billion to the very 
investors who have made such bad decisions. No one wants to plunge the 
economy into chaos, but we need to make sure we take our time and get 
this right because if we do not, we will be back here again, and the 
stakes will be even higher.

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