bobbyw24
05-21-2010, 04:35 AM
Reg reform: ‘unlimited bailouts,’ income ’social justice,’ says GOP senator (TRANSCRIPT)
| Published: 05/20/10 at 10:20 PM
Sen. Richard Shelby, Alabama Republican and the ranking Republican member of the Senate Banking Committee, gave a final speech on the Senate floor Thursday in advance of the final vote to pass a financial regulation bill, which passed later in the evening.
Here is the full text of Shelby’s speech:
“Mr. President, we are nearing the end of the Senate’s consideration of an historic piece of legislation. In response to the most significant financial crisis this country has seen in a generation, we have been engaged in a debate about the future of our financial system.
“Nearly two years ago, our economy came to a grinding halt. Credit markets shut down, business activity seized up, and world trade virtually collapsed. Millions of Americans lost their jobs and their homes, and they saw trillions in savings wiped out.
“Mr. President, as a witness to the near collapse of our financial system and the economic devastation it has wrought, I am fully aware of the fundamental importance of the legislative effort we are soon to complete.
“Because the financial system serves as the heart of our economy, this legislation will have a profound effect on the economic future of this country. The decisions we have made will have an impact on the lives of Americans for decades to come. Furthermore, the impact of this legislation will extend far beyond our shores.
“For these reasons, we must get this right.
“In the end, we will be judged by whether we have created a more stable, durable, and competitive financial system. That judgment will not be rendered by self-congratulatory press releases, but rather by the marketplace. And, the marketplace does not give credit for good intentions.
“So, knowing that millions of Americans suffered greatly because of the financial crisis and that generations of future Americans are relying upon us to get this right, how did we go about proceeding?
“Did we conduct a thorough review of every facet of the crisis? Did we look at the structure of our markets, examine the role of the regulators, and determine how the existing regulations drove certain market actions?
“Did we investigate the GSE’s, examine their capital and leverage, address the inherent weaknesses in their dual and conflicting objectives of maximizing returns for private owners while serving a public housing mission?
“Did we explain Bear Stearns and the causes of its collapse, along with the SEC regulatory program entrusted with its oversight? Did we collect and analyze data regarding the areas hardest hit by foreclosures?
“Did we determine whether there were any specific loan types, however characterized, that led to the foreclosures? Did we take time to learn lessons from the debacle of the AIG Financial Products division, or securities lending operations, or of overheated tri-party repo activity?
“Did we analyze how maturity transformation allowed the shadow banking system to, in effect, create money out of AAA rated securities? Did we analyze how activities in the shadow banking system led to an increased concentration of inherently runable activities?
“Did we analyze liquidity buffers at broker dealers?
http://dailycaller.com/2010/05/20/reg-reform-unlimited-bailouts-income-social-justice-says-gop-senator-transcript/
| Published: 05/20/10 at 10:20 PM
Sen. Richard Shelby, Alabama Republican and the ranking Republican member of the Senate Banking Committee, gave a final speech on the Senate floor Thursday in advance of the final vote to pass a financial regulation bill, which passed later in the evening.
Here is the full text of Shelby’s speech:
“Mr. President, we are nearing the end of the Senate’s consideration of an historic piece of legislation. In response to the most significant financial crisis this country has seen in a generation, we have been engaged in a debate about the future of our financial system.
“Nearly two years ago, our economy came to a grinding halt. Credit markets shut down, business activity seized up, and world trade virtually collapsed. Millions of Americans lost their jobs and their homes, and they saw trillions in savings wiped out.
“Mr. President, as a witness to the near collapse of our financial system and the economic devastation it has wrought, I am fully aware of the fundamental importance of the legislative effort we are soon to complete.
“Because the financial system serves as the heart of our economy, this legislation will have a profound effect on the economic future of this country. The decisions we have made will have an impact on the lives of Americans for decades to come. Furthermore, the impact of this legislation will extend far beyond our shores.
“For these reasons, we must get this right.
“In the end, we will be judged by whether we have created a more stable, durable, and competitive financial system. That judgment will not be rendered by self-congratulatory press releases, but rather by the marketplace. And, the marketplace does not give credit for good intentions.
“So, knowing that millions of Americans suffered greatly because of the financial crisis and that generations of future Americans are relying upon us to get this right, how did we go about proceeding?
“Did we conduct a thorough review of every facet of the crisis? Did we look at the structure of our markets, examine the role of the regulators, and determine how the existing regulations drove certain market actions?
“Did we investigate the GSE’s, examine their capital and leverage, address the inherent weaknesses in their dual and conflicting objectives of maximizing returns for private owners while serving a public housing mission?
“Did we explain Bear Stearns and the causes of its collapse, along with the SEC regulatory program entrusted with its oversight? Did we collect and analyze data regarding the areas hardest hit by foreclosures?
“Did we determine whether there were any specific loan types, however characterized, that led to the foreclosures? Did we take time to learn lessons from the debacle of the AIG Financial Products division, or securities lending operations, or of overheated tri-party repo activity?
“Did we analyze how maturity transformation allowed the shadow banking system to, in effect, create money out of AAA rated securities? Did we analyze how activities in the shadow banking system led to an increased concentration of inherently runable activities?
“Did we analyze liquidity buffers at broker dealers?
http://dailycaller.com/2010/05/20/reg-reform-unlimited-bailouts-income-social-justice-says-gop-senator-transcript/