[Congressional Record (Bound Edition), Volume 156 (2010), Part 12]
[Senate]
[Pages 17257-17260]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       HONORING OUR ARMED FORCES


                    Master Sergeant Jared Van Aalst

  Mrs. SHAHEEN. Mr. President, it is with a heavy heart that I rise 
today to pay tribute to the life and sacrifice of MSG Jared Van Aalst, 
a native of Laconia, NH. Jared was killed on August 4 while stationed 
in Kunduz Province, Afghanistan. He was serving on his sixth combat 
deployment as part of Operation Enduring Freedom. Jared exemplified the 
very best in our military's long tradition of selfless service on 
behalf of this great nation.
  Master Sergeant Van Aalst enlisted in the U.S. Army on August 17, 
1995. After completing basic training, the signal systems specialist 
course and basic airborne school, he was assigned to the Headquarters 
Company. He later completed the Ranger indoctrination program and 
sniper school, and continued to rise through the ranks as a sniper team 
leader and squad leader. Master Sergeant Van Aalst was promoted to 
sniper platoon sergeant, platoon sergeant, and finally served as the 
noncommissioned officer in charge of Headquarters Company's 3rd 
Battalion Reconnaissance, Sniper and Technical Surveillance. He saw 
combat in both Operation Iraqi Freedom and in Operation Enduring 
Freedom in Afghanistan.
  An exceptional marksman and soldier, in 2005 Master Sergeant Van 
Aalst defeated 147 of his brothers in arms to take first place at the 
service-rifle individual championship in the U.S. Army Small Arms 
Championships. He was later selected as a shooter and instructor for 
the U.S. Marksmanship Unit at Fort Benning.
  Master Sergeant Van Aalst's many awards include the Bronze Star 
Medal, two Meritorious Service Medals, two Joint Service Commendation 
Medals, three Army commendation Medals, seven Army Achievement Medals 
and five Good Conduct Medals, the Afghanistan Campaign Medal with two 
bronze service stars, the Iraq Campaign Medal with two bronze service 
stars and the National Defense Service Medal with bronze service star. 
He was posthumously awarded a second Bronze Star Medal and a third 
Purple Heart Medal, as well as the Defense Meritorious Service Medal. 
Our Nation can never adequately thank Jared for his willingness to make 
the ultimate sacrifice in the defense of American liberties, nor can 
words diminish the pain of losing this brave American. For his 15 years 
of service, he has earned our country's enduring gratitude and 
recognition.
  A Laconia native, Jared was a graduate of Plymouth Regional High 
School in Plymouth, NH, where he was the captain of the high school 
wrestling team and one of the best wrestlers in the entire state in his 
weight class. He is remembered for his incredible drive and 
determination to succeed.
  Jared has been laid to rest at Arlington National Cemetery. He is 
survived by his wife Katie Van Aalst, their two daughters Kaylie and 
Ava, and his parents Neville and Nancy Van Aalst. This brave New 
Hampshire son will be dearly missed by all.
  I ask my colleagues and all Americans to join me in honoring the life 
of MSG Jared Van Aalst.


                         Sergeant andrew Nicol

  Mr. President, today it is also my sad duty to pay tribute to the 
service and sacrifice of SGT Andrew Nicol, a native of Kensington, NH. 
Andrew, just 23 years old, was killed in action by an improvised 
explosive device on August 8 in Kandahar, Afghanistan, while supporting 
Operation Enduring Freedom. He served as an Army Ranger and was a 
member of the 3rd Battalion, 75th Ranger Regiment, based at Fort 
Benning in Georgia.
  Despite his young age, Sergeant Nicol served five tours in Iraq and 
Afghanistan and was awarded many medals for his valor. These included 
the

[[Page 17258]]

Army Achievement Medal, Army Good Conduct Medal, National Defense 
Service Medal, Afghanistan Campaign Medal with Combat Star, Iraq 
Campaign Medal with Combat Star, and the Global War on Terrorism 
Service Medal. He was honored for heroic actions during a combat 
mission in October 2008 and was also awarded the Bronze Star Medal for 
Valor for heroic actions in northern Iraq. His actions during these 
missions saved the lives of fellow soldiers and led to the capture of 
numerous enemy insurgents. Sergeant Nicol was posthumously awarded an 
additional Bronze Star Medal, a Meritorious Service Medal and a Purple 
Heart. Unquestionably, he served his country with both honor and 
distinction.
  Andrew was a 2005 graduate of Exeter High School. He was captain of 
the wrestling team there, and earned the respect and affection of his 
peers through his leadership and wonderful sense of humor. Andrew 
looked for challenges, from racing in New Hampshire motocross 
competitions to serving as a volunteer firefighter and EMT. He was an 
indispensable member of his community.
  Sergeant Nicol exemplified the best in New Hampshire's long tradition 
of service to this country. Our Nation can never adequately thank this 
young hero for his willingness to lay down his life in defense of the 
American people and words cannot fill the void left by his death. I 
hope that Andrew's family can find solace in knowing that all Americans 
share a deep appreciation for his service. Daniel Webster's words, 
first spoken during his eulogy for Presidents Adams and Jefferson in 
1826, are fitting: ``Although no sculptured marble should rise to their 
memory, nor engraved stone bear record of their deeds, yet will their 
remembrance be as lasting as the land they honored.'' Sergeant Nicol 
has earned our country's enduring gratitude and recognition.
  Andrew has been laid to rest at the New Hampshire State Veterans 
Cemetary in Boscawen. He is survived by his parents Roland and Patricia 
Nicol of Kensington, NH, and older brother Roland who lives in Boston. 
This young patriot will be dearly missed by all.
  I ask my colleagues and all Americans to join me in honoring the life 
of SGT Andrew Nicol.


                       Staff Sergeant Kyle Warren

  Mr. President, today with a heavy heart, I also wish to pay tribute 
to the life and service of Army SSG Kyle Warren, who was killed on July 
29 in Tsagay, Afghanistan, by an improvised explosive device. Warren, 
formerly of Manchester, NH, was on his second deployment to 
Afghanistan. He was a member of the 1st Battalion, 3rd Special Forces 
Group, Airborne, based at Fort Bragg, NC.
  Staff Sergeant Warren joined the military in 2004, entering the Army 
as a Special Forces trainee. Following Basic and Special Forces 
training, he completed medical training at the John F. Kennedy Special 
Warfare Center and School. By 2007, Warren had earned a Green Beret and 
went on to serve as a Special Forces medical sergeant during two tours 
of duty. His awards include the Bronze Star Medal, Army Achievement 
Medal, Good Conduct Medal, National Defense Service Medal, Afghanistan 
Campaign Medal, NATO Medal, Purple Heart, and Global War on Terrorism 
Service Medal. Unquestionably, he served our Nation with distinction 
and honor.
  A native of southern California, Kyle moved to New Hampshire in 2003 
to be closer to his mother. While in Manchester, Kyle joined the local 
men's rugby club and quickly made friends with his teammates. He is 
remembered for his wonderful sense of humor, remarkable physical 
strength, and exceptional kindness.
  SSG Kyle Warren exemplified the best in New Hampshire's long 
tradition of service to this country. Our Nation can never adequately 
thank him for his willingness to make the ultimate sacrifice in defense 
of the American people and words cannot fill the void left by his 
death. He has earned our Nation's enduring gratitude and recognition.
  SSG Kyle Warren is survived by his wife Sandra, whom he met while 
living in New Hampshire, his mother and stepfather Lynn and Ed Linta, 
as well as his father and stepmother Del and Hill Warren. This patriot 
will be dearly missed by all.
  I ask my colleagues and all Americans to join me in honoring the life 
of SSG Kyle Warren.


                    Sergeant Marvin Ray Calhoun, Jr.

  Mr. BAYH. Mr. President, I rise today to honor the life of SGT Marvin 
Ray Calhoun, Jr. of the U.S. Army and Elkhart, IN.
  Sergeant Calhoun was assigned to the Army's Bravo Company, 5th 
Battalion, 101st Combat Aviation Brigade, 101st Airborne Division. He 
lost his life on September 21, 2010, while serving bravely in support 
of Operation Enduring Freedom in Qalat, Afghanistan, where he was 
serving his second tour of duty. Sergeant Calhoun was 23 years old.
  Marvin joined the Army soon after graduating from Elkhart Central 
High School in 2006. He played on his high school football team and was 
described by his coach as one of the team's hardest working players.
  Today, I join Marvin's family and friends in mourning his tragic 
death. He is survived by his wife Yamili Sanchez and their daughter 
Yohani; his mother Shirin Reum; and his father Marvin Calhoun, Sr.
  As I search for words to honor this fallen soldier, I recall 
President Lincoln's words to the families of the fallen at Gettysburg: 
``We cannot dedicate, we cannot consecrate, we cannot hallow this 
ground. The brave men, living and dead, who struggled here, have 
consecrated it, far above our poor power to add or detract. The world 
will little note nor long remember what we say here, but it can never 
forget what they did here.''
  As we struggle to express our sorrow over this loss, we take pride in 
the example of this American hero. We will cherish the legacy of his 
service and his life.
  It is my sad duty to enter the name of Sergeant Marvin Ray Calhoun, 
Jr. in the Record of the U.S. Senate for his service to our country and 
for his profound commitment to freedom, democracy and peace.


                   Private First Class Gebrah Noonan

  Mr. DODD. Mr. President, it is with a heavy heart that I rise today 
to mark the passing and honor the service of Army soldier, PFC Gebrah 
Noonan of Watertown, CT.
  Private First Class Noonan died in Fallujah, Iraq, on September 24. 
He was a member of the Headquarters Company of the Third Infantry 
Division stationed out of Fort Stewart, GA. His company had deployed to 
Iraq in July and Gebrah was eager for the opportunity to serve his 
country-something he had always wanted to do.
  Gebrah Noonan graduated from Watertown High School in 2002, where he 
is fondly remembered by friends for having a larger than life 
personality, a smile on his face and a joke to share. His humor and wit 
earned him the title of class clown his senior year. Gebrah loved life 
and was an avid Yankees fan, but even more so a Michael Jackson 
enthusiast. He even dressed up like Michael Jackson during School 
Spirit Days.
  Private First Class Noonan was always outspoken about his love of 
country. He enlisted in the Army last October because he felt it was an 
opportunity to serve his country as well as an opportunity for self-
improvement. Private First Class Noonan's Army recruiter remembered him 
as a committed soldier who also brought his fun personality to 
everything he did. He truly had an infectious smile.
  Private First Class Noonan leaves behind a family that has supported 
him through every part of his young life. Our thoughts and prayers are 
with his parents William and Ling Noonan, as well as his brothers and 
sister. There are no words to express the debt of gratitude we owe to 
Gebrah and his family. PFC Gebrah Noonan's selflessness and sacrifice 
will not be forgotten by those of us who mourn his tragic loss.
  Mr. KAUFMAN. Mr. President, since last February, I have spoken at 
great length on what I viewed and continue

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to view as the key issue in financial reform that of too big to fail. 
As my colleagues know, I sponsored legislation with Senator Brown and 
others that would have placed strict limits on the size and riskiness 
of megabanks, but that did not pass. Instead, Congress placed its faith 
in regulators to set appropriate prudential standards for these 
institutions.
  The issue of too big to fail has therefore not gone away with the 
passage of the landmark Dodd-Frank bill. It remains the most pressing 
issue for regulators and for all of us. As Fed Chairman Ben Bernanke 
stated recently in testimony before the Financial Crisis Inquiry 
Commission: ``If the crisis has a single lesson, it is that the too-
big-to-fail problem must be solved.''
  Given that, financial regulations being developed nationally and 
internationally will be judged by one critical standard: do they 
address the core problem of too big to fail? This will be my last 
Senate speech on this issue, and I will be focusing on whether the 
recent rules coming out of Basel, Switzerland and that will be 
considered in the upcoming G20 meeting in Seoul meet this standard.
  The oversight body of the Basel Committee on Bank Supervision 
recently came to agreement on a core pillar of the Basel III framework 
of bank capital and liquidity standards. The agreement comes 
approximately 2 years after the original onslaught of the financial 
crisis and only a couple of months after the passage of a landmark 
financial reform bill in this Congress. This represents a rather quick 
turnaround for complex and oftentimes fractious international 
negotiations on financial regulation.
  The new Basel III agreement also effectively increases the amount of 
common equity that banks must hold as a percentage of their risk 
weighted assets from 2 percent to 7 percent. Importantly, this change 
not only raises the international bar on the amount of capital that 
banks hold, but also the quality of the capital that they hold that is, 
more of their capital will need to be held in the form of common equity 
and retained earnings. In addition, this minimum risk-weighted capital 
ratio would also be supplemented for the first time on an international 
level by a leverage limit of 3 percent, a ratio that reflects the 
amount of capital that a bank holds relative to the size of its assets.
  While I commend the committee on its efficiency and for producing a 
proposal that significantly strengthens existing international capital 
standards, I see several problems and flaws with regard to both the 
design and implementation of these rules.
  First, the standards are still too weak and will take way too long to 
be implemented. Even with the greater focus on high-quality equity 
capital, large U.S. bank holding companies are generally already well 
above the Basel III standards, which they will not have to comply with 
until 2019. And while the introduction of a leverage ratio has been 
hailed as a major achievement, it is subject to a long test and 
implementation period and is set at such a low level as to be mere 
window dressing. In fact, it would still permit financial institutions 
to leverage their balance sheets more than 33 times over their capital 
base, which is well above the gross leverage level at Lehman before it 
went into bankruptcy.
  Second, given the weakness of the leverage ratio, it is even more 
incumbent on negotiators to go back to the drawing board on the flawed 
risk-based standards of Basel II. In short, determinations on capital 
adequacy under the Basel rules will continue to be dependent on 
arbitrary risk weights, the judgments of rating agencies and the banks' 
own internal models. Instead of correcting the fundamental flaws of 
Basel II, Basel III continues to walk on its Achilles heel.
  The final financial reform bill partially addresses this problem by 
removing all references to credit rating agency ratings in Federal 
regulations. But since the Basel regulatory capital rules depend 
heavily on credit rating agency determinations, U.S. regulators are 
currently struggling to find a viable alternative. This is no doubt a 
tough task given that the use of ratings is at least as pervasive in 
the world of financial markets as it is in the world of financial 
regulations.
  Third, the Basel Committee punts on a global liquidity standard. With 
all the focus on capital requirements, it is easy to forget that 
liquidity rules are at least as important, if not more so. After all, 
Lehman Brothers was deemed adequately capitalized only days before a 
run on the firm evaporated its liquidity. Other institutions that were 
reportedly adequately capitalized also had fatal or near-fatal 
experiences due to liquidity runs.
  The Basel Committee initially proposed a fairly robust liquidity 
proposal late last year. Under it, banks would be subject to a 
liquidity coverage ratio, LCR, requiring them to hold enough high grade 
liquid assets to cover potential cash needs over a 30-day period. They 
would also be subject to a net stable funding ratio, NSFR, requiring 
them to have sufficient sources of stable funding based upon the 
overall liquidity profile of their assets. Such a standard would help 
limit overreliance on unstable wholesale financing sources, a cause of 
the financial crisis that I will discuss in greater detail later in 
this speech. Unfortunately, in the face of a vocal industry backlash, 
the committee watered down the proposals in July and has further 
backtracked on these standards in its most recent release. Both are 
also subject to a long ``observation period.'' In fact, the actual 
standards on the LCR and NSFR, which are likely to be much weaker than 
the initial proposals, will not be introduced until 2015 and 2018, 
respectively.
  Instead of waiting on uncertain and delayed Basel rules, U.S. 
regulators can set their own liquidity rules and/or use new powers 
granted by Dodd-Frank to place basic limits on the use of short-term 
debt, including repos, by systemically significant financial 
institutions. In the years prior to the crisis, the repo market morphed 
from a means for money-center banks to use high-quality collateral like 
Treasurys to secure overnight liquidity to being a convenient way for 
banks to finance the booming securitization machine. Unfortunately, the 
use of repos and other forms of short-term borrowing to finance massive 
inventories of illiquid structured securities backed by dubious 
collateral led to serious structural weaknesses at the heart of our 
financial system. Placing basic limits on this practice would add 
greater stability to our financial system. Indeed, if financial 
institutions had to use more expensive longer term funding to finance 
risky assets, we would likely see fewer risky and needlessly complex 
financial assets being created. As a recent study by the Bank of 
International Settlements shows, the effect of higher capital and 
liquidity requirements will likely strengthen financial stability 
without hindering economic growth.
  Finally, the Basel Committee has yet to specifically address the 
problem of too big to fail. Although the committee notes that 
systemically significant banks should have ``loss absorbing capacity'' 
that goes beyond these basic standards, it has yet to provide much in 
the way of details of what this will entail. Ultimately, systemically 
important banks might need to hold some combination of the following: 
additional capital; contingent capital that converts from debt to 
equity when overall capital levels drop below a minimum threshold; and 
so-called bail-in debt that would subject holders of the debt to an 
expedited cram-down in cases where the institution was distressed. 
Presently, concepts such as contingent capital and bail-in debt, 
neither of which is a high-quality form of capital, raise more 
questions than answers with regard to how expensive a form of capital 
they would be and how they would work in practice. Indeed, the Basel 
Committee itself continues to explore these issues as reflected by a 
recent consultative document. And while the committee calls for a 
``well integrated approach'' on the supervision of systemically 
significant institutions, it seems more likely that the regulation of 
these firms will differ depending on national jurisdictions.
  Under the new financial reform law, the Federal Reserve must set 
capital

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and other prudential standards that are more stringent for systemically 
risky institutions than they are for other financial institutions. It 
can also set graduated capital requirements that rise as banks and 
other financial institutions grow bigger and more complex. In addition, 
the Fed can set countercyclical capital rules that require banks to 
build up capital buffers during a bubble. While the Basel agreement 
also calls for such countercyclical rules, national regulators will 
have great discretion on when and how to implement them.
  But to truly address too big to fail, regulators will ultimately need 
to limit the size, complexity, and riskiness of megabanks. The final 
financial reform bill has a number of provisions that have the promise 
of doing this, if regulators avail themselves of them. For example, the 
final bill's inclusion of the Kanjorski provision will give regulators 
the explicit authority to break up megabanks that pose a ``grave 
threat'' to financial stability. In addition, the requirement that 
systemically significant firms develop ``living wills'' allows 
regulators eventually to force an institution to shed assets if it 
fails to submit a credible resolution plan. Because resolution 
authority does not work for global mega-banks sprawled across many 
borders, I believe it will be imperative for regulators to use these 
powers.
  I hope we ultimately take heed of the lesson that Chairman Bernanke 
identified. While the Basel III framework will be useful in setting 
minimum international standards, U.S. and other national regulators 
will need to go far beyond it to address the problem of too big to 
fail. Of course, I would have preferred to have solved this problem by 
drawing simple statutory lines, such as those put forward in the Brown-
Kaufman amendment. The Dodd-Frank bill instead takes a different tack, 
leaving critical decisions in the hands of the regulators. Its ultimate 
success or failure will therefore depend on the actions and follow 
through of these regulators for many years to come.
  As I have said before, Congress has an important role to play in 
overseeing the enormous regulatory process that will ensue following 
the bill's enactment. The American people, for that matter, must stay 
focused on these issues, if just to help ensure that Congress indeed 
will fulfill its oversight duty and its duty to intervene if the 
regulators fail. Although I will be leaving the Senate in November, I 
will be watching to see if the regulators have learned the lesson to 
which Chairman Bernanke refers and are willing to take the tough steps 
to solve the too big to fail problem.

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