September 16, 2008 CONGRESSIONAL RECORD — SENATE S8821 The National Defense Authorization The PRESIDING OFFICER. The you will find that over the last 7 or 8 Act is designed to strengthen our mili- clerk will call the roll. years, this country has not been kind tary, provide the required resources to The assistant legislative clerk pro- to them. Their spending power has the Department of Defense to carry out ceeded to call the roll. been reduced. They continue to work. the responsibilities our Nation asks of Mr. DURBIN. I ask unanimous con- They are productive workers. Amer- them, and to improve our servicemem- sent that the order for the quorum call ica’s economy is a productive economy. bers’ and their families’ quality of life. be rescinded. And yet they have not been rewarded The proposed legislation and the fund- The PRESIDING OFFICER. Without for their work. Their wages have not ing priorities will ensure that our Na- objection, it is so ordered. kept up with the cost of living. They tion maintains an adept and quality Mr. DURBIN. I ask unanimous con- have fallen behind under this Bush ad- force to defend our country and allow sent to speak as in morning business. ministration some $2,000 worth of us to continue to be an ambassador for The PRESIDING OFFICER. Without spending power at a minimum. These a prosperous and peaceful world. I com- objection, it is so ordered. The Senator are the people who are paying $4.50 per mend the chairman, the ranking mem- is recognized. gallon of gasoline trying to figure out ber, and committee staff for their hard THE ECONOMY how to get back and forth to work and work on the bill and their diligence in Mr. DURBIN. Mr. President, we con- to meet their obligations to their fami- bringing it to the floor. tinue to read today, as we did yester- lies and friends. Unfortunately, the bill does have sev- day, about dramatic changes in the These are folks who are struggling eral problematic provisions, including American economy, particularly the with the cost of groceries and clothing. an unnecessary limitation on the role problems facing many of our larger fi- They are the same ones trying to fig- of private security contractors and an nancial institutions. ure how in the world to put their kids unnecessary prohibition on trained and Not that many weeks ago, the Fed- through college so their kids will not qualified personnel conducting lawful eral Government stepped in when Bear end up with student loans that look interrogations. I hope we can address Stearns was in a terrible economic like their first mortgages. and resolve these issues in conference state and took over the responsibility They are worried also about health in a way that best serves our military for that company. It was an extraor- care, about the health insurance plans personnel and allows them to effec- dinary decision because this is a com- that do not cover as much this year as tively carry out their responsibilities. pany that we had not regulated as a they did last year. They are worried I also hope the Senate can complete Federal Government, not one at least about the out-of-pocket payments they action on this very important piece of in detail. We knew their transactions may have to make. They realize, most legislation and proceed to a House-Sen- and balance sheets, but we put the full of them, they are one diagnosis away ate conference and passage of a con- faith and credit of the American people from bankruptcy. That is the reality of ference report prior to the end of this and our Treasury behind rescuing Bear life in the economy beyond Wall month. Stearns. Street. I yield the floor. Then a little over a week ago the de- So when you look across the board at The ACTING PRESIDENT pro tem- cision was made by this administration this economy, you realize the funda- pore. The Senator from California is to do the same for two entities, Gov- mental weaknesses of what we face recognized. ernment-sponsored entities, Fannie today. Of course, the housing market Mrs. FEINSTEIN. I thank the Chair. Mae and Freddie Mac. These were the has been the catalyst for some of the (The remarks of Senator FEINSTEIN major institutions for housing in problems we now see. It turned out pertaining to the introduction of S. America. Between them, some 50 per- that the greed of Wall Street, of the 3493 are located in today’s RECORD cent of all mortgages were being held. overreaching of some companies, led to under ‘‘Statements on Introduced Bills It was understandable that decision loans and mortgages which were to- and Joint Resolutions.’’) was made because the alternative was tally unwise. Mrs. FEINSTEIN. Mr. President, I unthinkable. If Fannie Mae and Many of those now have resulted in yield the floor. Freddie Mac should collapse, it would foreclosures, where people are having Mr. LEVIN. Mr. President, I suggest jeopardize not only mortgages and to leave their homes. Their misfortune the absence of a quorum. homeowners but also the American is being visited on their neighbors. I re- The ACTING PRESIDENT pro tem- economy. It is such a large part, it is cently had an appraisal on my home in pore. The clerk will call the roll. understandable that the administra- Springfield. It is the same home I lived The legislative clerk proceeded to tion stepped in to make that decision. in when I was first elected to Congress call the roll. Now this week comes a new round. many years ago. I have been there a Mr. LEVIN. Mr. President, I ask Lehman Brothers, a company in New long time. I have to tell you the value unanimous consent that the order for York which has prospered for many of my home has gone down 20 percent. the quorum call be rescinded. years, now faces bankruptcy, and along Why? It is not because we did not The ACTING PRESIDENT pro tem- with it the question of the future of keep it up—we do a fairly good job with pore. Without objection, it is so or- Merrill Lynch, a major brokerage that—it is because the economy is dered. house which appears to be in line to be weak in my hometown of Springfield, f acquired by Bank of America. IL, and foreclosures nearby have taken These are dramatic and unsettling their toll on the value of my home. We RECESS events and a reminder to all of us that made all of our mortgage payments, The ACTING PRESIDENT pro tem- the state of the American economy is but the value of our home went down 20 pore. Under the previous order, the not as sound and solid as we would like percent. That is the reality a lot of Senate stands in recess until the hour to see it. But those are the events people are facing. My story is not one of 2:15 p.m. which happened at the highest levels of that should bring tears to anybody’s Thereupon, the Senate, at 12:34 p.m., finance and the highest levels of Wall eyes; we will get through it. But a lot recessed until 2:15 p.m. and reassem- Street. of folks cannot. They cannot get bled when called to order by the Pre- All of us representing our constitu- through this, and that is where we are siding Officer (Mr. CARPER). ents—I represent Illinois—have trav- in the economy today. f eled around our States and met with How did we reach this point? We small business men and women, family reached this point when we adopted a NATIONAL DEFENSE AUTHORIZA- farmers, and families as well, talking mentality that was dominant in this TION ACT FOR FISCAL YEAR about the situation they face today. city for so long that, first, get Govern- 2009—Continued They do not make the headlines as ment off my back. Government is my The PRESIDING OFFICER. Who Merrill Lynch or Lehman Brothers, but enemy. Deregulate. seeks recognition? they should because if you go across That was a pretty popular mantra Mr. LEVIN. Mr. President, I suggest the board and talk to these working around here 10 or 15 years ago. In fact, the absence of a quorum. families, these middle-income families, a lot of people laughed about it. Even

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8822 CONGRESSIONAL RECORD — SENATE September 16, 2008 people such as the venerable wise crit- have fallen behind in their spending That is why this election is so funda- ic, Rush Limbaugh, said: If we close power, where they find it difficult to mental. If we want to continue the eco- down the Federal Government no one live paycheck to paycheck, let alone nomic policies of the Bush-Cheney ad- would even notice. save some money. He cannot be talking ministration that have led us to this Well, he was wrong when he said it. about an economy with $4.50 gasoline, sorry moment, then Senator MCCAIN is He would certainly be wrong today be- with diesel fuel that is even more ex- clearly the person who should lead this cause what has happened to us is a re- pensive, and jet fuel that is running country for the next 4 years. But if we minder that there is an appropriate the aviation industry out of business. are going to change those policies, if and important role that Government What economy is JOHN MCCAIN talk- we are going to give middle-income and needs to play. As strong as our entre- ing about? It is interesting how close working families a fighting chance in preneurial free market economy is, if his quote comes to one from another this economy, if we are going to have a it is not subject to oversight and ac- person who happened to be elected Tax Code written not to reward wealth countability, it can spin out of control. President. His name was Herbert Hoo- but to reward work for a change, then That is what happened with this ver; the date was October 25, 1929. This we need a change in Washington. We subprime mortgage market. Instead of was just shortly before, days before, need to have a new approach, not only having appropriate oversight and ac- the great stock market crash. a new economic and tax policy but the countability, loans were made which Here is what President Herbert Hoo- kind of regulation that provides pro- made no sense whatsoever, and eventu- ver said then: tection from the excesses of the mar- ally that credit operation collapsed The fundamental business of the country, ket. Even Senator MCCAIN yesterday leading to the foreclosures we see that is production and distribution of com- referred to the greed on Wall Street. today. modities, is on a sound and prosperous basis. Left unchecked, unfettered, this greed What we see on Wall Street now with That was said days before the stock can spin out of control. That is why many of these investment banks going market collapsed. This quote from there is such a fundamental choice fac- under are credit institutions which are JOHN MCCAIN yesterday is reminiscent ing American families in only 7 weeks. not subject to Government regulation. of President Hoover. It shows the same I ask unanimous consent to have the It is like playing ‘‘off the books.’’ If a lack of connection to the real world in New York Times article to which I re- business does that, the IRS comes in which people are living. ferred printed in the RECORD. and says: You have just violated the When it comes to Senator MCCAIN’s There being no objection, the mate- law. You are supposed to put every- philosophy and how we should ap- rial was ordered to be printed in the thing on the books and report to us. proach these issues, he has been pretty RECORD, as follows: Well, there is a whole world of credit outspoken. It has been printed this [From the New York Times, Sept. 16, 2008] and finance that is ‘‘off the books’’ morning in an article in the New York IN CANDIDATES, 2 APPROACHES TO WALL when it comes to regulation and over- Times written by Jackie Calmes. She STREET sight by the Federal Government. And wrote: (By Jackie Calmes) that is the world that is collapsing. It In early 1995, after Republicans had taken WASHINGTON.—The crisis on Wall Street control of Congress, Mr. MCCAIN promoted a is an indication to me that when we will leave the next president facing tough moratorium on Federal regulations of all faced a similar situation 75 years ago, choices about how best to regulate the finan- kinds. He was quoted as saying that exces- with the Great Depression, that Frank- cial system, and although neither Senator sive regulations were ‘‘destroying the Amer- lin Roosevelt got it right. He under- Barack Obama nor Senator John McCain has ican family, the American dream,’’ and vot- yet offered a detailed plan, their records. and stood that the economic problems in ers ‘‘want these regulations stopped.’’ The the principles they have set out so far sug- America called for sensible regulation moratorium measure was unsuccessful. and disclosure and transparency and gest they could come at the issue in very dif- He told the Wall Street Journal last ferent ways. accountability. March: ‘‘I’m always for less regulation, On the campaign trail on Monday, Mr. He created agencies which responded but I am aware of the view that there McCain, the Republican presidential nomi- to the economy of the day. Regulation, is a need for government oversight’’ in nee, struck a populist tone. Speaking in yes, but without that regulation, un- situations like the subprime lending Florida, he said that the economy’s under- fortunately, the market was spinning crisis, the problem that has cascaded lying fundamentals remained strong but were being threatened ‘‘because of the greed out of control to the detriment of ev- through Wall Street this year. eryone, not just business owners but by some based in Wall Street and we have Senator MCCAIN concluded: ‘‘But I got to fix it.’’ workers, farmers, and people who are am fundamentally a deregulator.’’ just trying to get by. But his record on the issue, and the views Later that month Senator MCCAIN of those he has always cited as his most in- We need to return to a mindset which gave a speech on the housing crisis in fluential advisers, suggest that he has never says there is an appropriate role for which he called for less regulation say- departed in any major way from his party’s Government. There are things which ing: embrace of deregulation and relying more on our Government can do which private Our financial market approach should in- market forces than on the government to industry, on its own devices, will not clude encouraging increased capital in finan- exert discipline. do. That is why we need to be more cial institutions by removing regulatory, ac- While Mr. McCain has cited the need for sensible when it comes to regulation. counting and tax impediments to raising additional oversight when it comes to spe- Yesterday, the Republican candidate capital. cific situations, like the mortgage problems behind the current shocks on Wall Street, he for President, JOHN MCCAIN, said: Senator MCCAIN has been consistent. has consistently characterized himself as Our economy, I think still the fundamen- He has opposed Government oversight, fundamentally a deregulator and he has no tals of our economy are strong. accountability, and regulation. Now, it history prior to the presidential campaign of I would say that Senator MCCAIN can go too far. Do not get me wrong. advocating steps to tighten standards on in- does not accurately portray our econ- We have seen it at its worst. But if you vestment firms. omy today. I wonder which economy he do not have a fundamental oversight He has often taken his lead on financial is talking about? Is he talking about effort being made by the Government, issues from two outspoken advocates of free market approaches, former Senator Phil an economy with record unemploy- then consumers and the economy are Gramm and Alan Greenspan, the former Fed- ment, the highest in 5 years? Is he at the mercy of those who go too far. eral Reserve chairman. Individuals associ- talking about an economy with record Inevitably they will go too far. I can ated with Merrill Lynch, which sold itself to home foreclosures, the most since the recall the savings and loan crisis, lead- Bank of America in the market upheaval of Great Depression? Is he talking about ing to a taxpayers bailout. I now see the past weekend, have given his presidential an economy where people’s savings the problems in the subprime mortgage campaign $300,000, making them Mr. that they count on for the future—the situation leading to a taxpayers bail- McCain’s largest contributor, collectively. value of their home or their 401(k) or out of Fannie Mae and Freddie Mac, Mr. Obama sought Monday to attribute the financial upheaval to lax regulation during their retirement account—have been Bear Stearns, and maybe others. If we the Bush years, and in turn to link Mr. diminished by the state of this econ- do not keep an eye on their activities McCain to that approach. omy? He cannot be talking about the and demand accountability, we will end ‘‘I certainly don’t fault Senator McCain for economy where middle-income families up paying the price. these problems, but I do fault the economic

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8823 philosophy he subscribes to,’’ Mr. Obama ulation, saying, ‘‘Our financial market ap- The PRESIDING OFFICER. Is there told several hundred people who gathered for proach should include encouraging increased objection? an outdoor rally in Grand Junction, CO. capital in financial institutions by removing Mrs. BOXER. I also ask unanimous Mr. Obama set out his general approach to regulatory, accounting and tax impediments consent that the Republican leader’s financial regulation in March, calling for to raising capital.’’ regulating investment banks, mortgage bro- Yet Mr. McCain has at times in the presi- time begin 5 minutes after I begin. kers and hedge funds much as commercial dential campaign exhibited a less ideological The PRESIDING OFFICER. Without banks are. And he would streamline the streak. As he did on Monday, he from time objection, it is so ordered. overlapping regulatory agencies and create a to time speaks in populist tones about big Mrs. BOXER. Mr. President, I rise to commission to monitor threats to the finan- corporations and financial institutions and address the Senate not only as a Sen- cial system and report to the White House presents himself as a Theodore Roosevelt- ator from the largest State in the and Congress. style reformer. He supported the Bush ad- Union, a State that is experiencing ministration’s decision to seize Fannie Mae On Wall Street’s Republican friendly turf, many problems that started with the Mr. Obama has outraised Mr. McCain. He has and Freddie Mac, the mortgage giants, and received $9.9 million from individuals associ- he has backed as unavoidable the promise of housing crisis about which we talked a ated with the securities and investment in- taxpayer money to help contain the financial long time ago, before the Fed stepped dustry, $3 million more than Mr. McCain, ac- crisis. in and did something, but I also rise as cording to the Center for Responsive Poli- Other than Mr. Gramm, who as chairman an economics major. I received my de- of the Senate Banking Committee before his tics, a watchdog group. His advisers include gree in economics. My minor was polit- leaving Congress in 2002 worked to block ef- Wall Street heavyweights, including Robert forts to tighten financial regulation, Mr. ical science. I was a stockbroker a long E. Rubin, the former treasury secretary who McCain’s closest adviser on matters of Wall time ago on Wall Street. I know a little is now a senior adviser at Citigroup, another Street is John Thain, the chief executive of bit about Wall Street, and I know a lit- firm being buffeted by the financial crisis. Merrill Lynch, who has raised about $500,000 If many voters are fuzzy on the events that tle bit about the times we are in right for Mr. McCain. Unlike Mr. Gramm, Mr. over the weekend forced Lehman Brothers now. I worked on Wall Street when Thain has a reputation as a pragmatic, non- Holdings Inc. into bankruptcy and Merrill John Kennedy was assassinated. It was ideological, moderate Republican. That the Lynch & Company. to be swallowed by the a horrible time. Confidence was shat- men are Mr. McCain’s touchstones is typical Bank of America Corporation, the con- of his small and eclectic mix of advisers, tered. The stock market actually tinuing chaos among the most venerable making it hard to generalize about how Mr. closed down for a period. Now we are names in American finance—coming on top McCain would act as president. facing a meltdown. The fact is, we are of the recent government seizure of mort- A prominent McCain supporter, Gov. Tim all going to work and hope that it gage giants Fannie Mae and Freddie Mac and Pawlenty of Minnesota, signaled how Mr. doesn’t melt all the way down. the demise of the Bear Stearns Companies— McCain would try to make his antiregula- has stoked their anxiety for the economy, On the day that we learn about Mer- tion record fit the proregulation times that rill Lynch, which was the gold stand- the foremost issue on voters’ minds. the next president will inherit. Mr. Pawlenty So it was that first Mr. Obama and then suggested in an interview on Fox News that, ard of brokerage houses, and AIG, what Mr. McCain rushed out their statements on given the danger that ‘‘any future adminis- I understand is the largest insurance Monday morning before most Americans had tration’’ would go too far, Mr. McCain would company in America, when we hear reached their workplaces. be the safer bet to protect against ‘‘excessive about that and about Lehman Broth- To the extent that travails on Wall Street government intervention or excessive gov- and Main Street have both corporations and ers, which we also hope can survive in ernment regulation;’’ some form via purchase—and certainly homeowners looking to Washington for a Mr. Obama also does not have much of a hand, that helps Mr. Obama and his fellow record on financial regulation. As a first- we know thousands of people have lost Democrats who see government as a force for term senator, he has not been around for the everything—to hear a U.S. Senator— good and business regulation as essential. major debates of recent years, and his eight namely, Senator MCCAIN—say the fun- Yet Mr. McCain has sold himself to many years in the Illinois Senate afforded little damentals of this economy are strong voters as an agent for change, despite his opportunity to weigh in on the issues. sends cold shivers up and down my party’s unpopularity after years of domi- In March 2007, however, he warned of the spine. To think that anyone would say nating in Washington, and despite his own coming housing crisis, and a year later in a antiregulation stances of past years. speech in Manhattan he outlined six prin- that, one would have to go back to the Mr. McCain was quick on Monday to issue ciples for overhauling financial regulation. days of Herbert Hoover, President of a statement calling for ‘‘major reform’’ to On Monday, he said the nation was facing the United States, the day after the ‘‘replace the outdated and ineffective patch- ‘‘the most serious financial crisis since the market crashed in 1929 and we entered work quilt of regulatory oversight in Wash- Great Depression,’’ and attributed it on the the Great Depression. He said: hands-off policies of the Republican White ington and bring transparency and account- The fundamental business of the country, ability to Wall Street.’’ Later his campaign House that, he says, Mr. McCain would con- tinue. Seeking to showcase Mr. Obama’s con- that is production and distribution of com- unveiled a television advertisement called modities, is on a sound and prosperous basis. ‘‘Crisis,’’ that began: ‘‘Our economy in crisis. cerns, his campaign said Mr. Obama led a Only proven reformers John McCain and conference call on the crisis early Monday We have Senator MCCAIN memori- Sarah Palin can fix it. Tougher rules on Wall that included Paul A. Volcker, the former alizing this attitude and these words. Street to protect your life savings.’’ chairman of the Federal Reserve; Mr. Rubin; I wish to spend the rest of my time Mr. McCain’s reaction suggests how the and his successor as treasury secretary, Law- going through the fundamentals of this pendulum has swung to cast government reg- rence H. Summers. Later, citing Mr. McCain’s remarks about economy. I will come back and speak ulation in a more favorable political light as the economy’s strong fundamentals, he told later when I have a little more time to the economy has suffered additional blows a Colorado crowd that Mr. McCain ‘‘doesn’t expand. and how he is scrambling to adjust. While he get what’s happening between the mountain In 1999, the average American family has few footprints on economic issues in in Sedona where he lives and the corridors of spent $3,261 on cost-of-living expenses; more than a quarter century in Congress, power where he works.’’ Mr. McCain has always been in his party’s in 2007, $7,585. The average household One reason for both men’s sketchy records earned less in 2006 than they did in mainstream on the issue. on financial issues is that neither has been a In early 1995, after Republicans had taken member of the Senate Banking Committee, 2000. Incomes are going down. Expenses control of Congress, Mr. McCain promoted a which has oversight of the industry and its are going up—groceries, heating, gas, moratorium on federal regulations of all regulators. Under both parties’ leadership, health care. The fundamentals of our kinds. He was quoted as saying that exces- the committee often has been a graveyard economy are strong? As Senator OBAMA sive regulations were ‘‘destroying the Amer- for proposals opposed by lobbyists for finan- said: What economy? Not this econ- ican family, the American dream’’ and vot- cial institutions, including Fannie Mae and omy. The average household earned ers ‘‘want these regulations stopped.’’ The Freddie Mac, which last week were forced moratorium measure was unsuccessful. into government conservatorships. less in 2006 than they did in 2000. Job ‘‘I’m always for less regulation,’’ he told Industry lobbyists’ success in killing such growth during this administration has The Wall Street Journal last March, ‘‘but I regulations meant senators outside the been the slowest since Herbert Hoover am aware of the view that there is a need for banking panel did not have to take a stand in 1929, the Great Depression. Our econ- government oversight’’ in situations like the on them. omy has lost jobs for 8 straight subprime lending crisis, the problem that months; 84,000 jobs were lost last has cascaded through Wall Street this year. The PRESIDING OFFICER. The Sen- He concluded, ‘‘but I am fundamentally a ator from California. month. The fundamentals of this econ- deregulator.’’ Mrs. BOXER. Mr. President, before omy are strong? What? Later that month, he gave a speech on the the hour of 2:30, I ask unanimous con- One in five Americans is unemployed housing crisis in which he called for less reg- sent to be recognized for 5 minutes. for more than 26 weeks, an increase of

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8824 CONGRESSIONAL RECORD — SENATE September 16, 2008 8.2 percent over 2001. Americans living has always allowed a robust debate and are confronted with cloture. I then in poverty increased by 5.7 million amendments by Members and, an aver- searched my conscience: What do I do? since 2000, and 37 million Americans age, as I said, of 21. We have had two so Because I am definitely more than live in poverty. The fundamentals of far. Clearly we are not ready to stop sympathetic, completely in support this economy are strong? Spare me. this bill. There is more work to be that the minority has to have certain Existing home sales fell by 22 percent done. Frequently, amendments are em- rights and a certain ability. That is the in 2007. President Bush inherited a sur- bodied in a managers’ amendment, on way this institution is constructed. plus. We now have an enormous deficit. average, of 192 amendments that were I shall vote for cloture for the fol- The debt has increased over $4 trillion agreed to during the consideration of lowing reason: I ran a quick mental since 2001. We are spending $10 billion a the last three DOD authorization bills. calculation. It was 63 years ago, in Jan- month in Iraq. The money is leaving As I said, this year the majority has uary of 1945, that I joined the U.S. the country. We are not making the in- accepted but two. Navy. If I had to point to the one single vestment. The fundamentals of this Now, on our side we had hoped we thing in my some 40 years plus of pub- economy are strong? would have a unanimous consent agree- lic service that has meant the most to Every American, I don’t care what ment that could be entered into at this me personally, it is working with and party—Republican, Democratic, Inde- point to obviate the necessity of the learning from the men and women of pendent—should be up in arms about a vote on cloture. It appears now that the Armed Forces of the United States. leader looking at these figures. I have that will not be the case. So unfortu- My military career on active duty is of only given a little of the story. Let’s nately we are in a situation where we no great consequence, but my learning get real. The fundamentals of this are clearly not ready to call an end to experience was enormous, and I have economy are weak. The people are anx- this bill. There is still a lot more work tried through these 30 years in the Sen- ious, and they should be. It is time for to be done. The two managers have ate to pay back to this generation and change. tried very hard to reach an agreement. future generations of men and women I yield the floor. That has not been possible to do. all the wonderful things, including two The PRESIDING OFFICER. The time Therefore, at least for me—and I don’t GI bills, that were done for me. of the Senator from California has ex- pretend to speak for everyone on the So I could not have this, being al- pired. Who seeks recognition? Republican side—but at least for me, I most the last vote that I will cast in Under the previous order, the time can’t in good conscience vote to close these 30 years, in any other way than until 3:06 is equally divided, with the off debate, bring this bill to a close be consistent with my conscience, as I Republican leader controlling the first when there are so many outstanding have tried to do the best, and will con- tinue to do the best, on behalf of the 15 minutes and the majority leader issues that I know Republicans wish to men and women of the Armed Forces controlling the last 15 minutes. bring to closure. There is one in par- and their families. Mrs. BOXER. I suggest the absence of ticular I will mention before I close. a quorum. I thank my colleagues. There is this matter of earmarks. The PRESIDING OFFICER. The time The PRESIDING OFFICER. The What we had resolved to do in the Sen- of the Senator has expired. clerk will call the roll. ate was to say that only legislative The Democratic leader is recognized. The assistant legislative clerk pro- language would be sufficient for a so- Mr. REID. Mr. President, I had the ceeded to call the roll. called earmark to have the force of opportunity in August to travel to Af- Mr. KYL. Mr. President, I ask unani- law. You couldn’t put earmarks in re- ghanistan. I always try to find the Ne- mous consent that the order for the port language and then expect the ex- vada troops and I was able to do that quorum call be rescinded. ecutive branch to adhere to those ear- because there are a lot of them over The PRESIDING OFFICER. Without marks when it spent the money appro- there. But I talked to troops—not Ne- objection, it is so ordered. priated by Congress. Well, once again, vada troops but American service men Mr. KYL. Mr. President, unfortu- we have the specific items of spending and women. I have had the good for- nately, we are in a situation with this that some call earmarks not put in leg- tune of being able to go to Iraq and bill where we have not been able to islative language except by reference. I talk to our military in Iraq. To try to reach an agreement on how to proceed. know both Senator WARNER and Sen- explain to them that we are not doing I say this notwithstanding the Hercu- ator DEMINT and some others had pro- a Defense authorization bill because lean efforts by the chairman and the posed amendments to deal with that. I minority rights aren’t protected, I ranking member of the committee. would have liked to have voted on a mean what is—what are we doing? This Senator WARNER informed me a mo- Senator WARNER amendment to deal will be the 94th time we voted on clo- ment ago about the negotiations that with that subject but, apparently, ture this Congress—the 94th time—far have been ongoing, literally over the without a unanimous consent agree- breaking any records ever in the his- weekend, and yet it appears that not- ment, that is not going to be possible. tory of our great country; more than withstanding their best efforts it has So there are a variety of things that double. been impossible to find a way to move remain to be done. If we vote for clo- My friend, the distinguished Senator forward on this bill that encompasses ture on the bill, they are not going to from Arizona, says they are not ready amendments or embodies those amend- get done. to end this debate. We have a profes- ments in a managers’ amendment to Therefore, reluctantly, as I said, it sional staff. The Republican staff of the the bill such that the Members, at will be my position to vote against clo- Armed Services Committee is as pro- least on our side, would feel com- ture on this bill. fessional as you can get, and that on fortable proceeding to close off debate Mr. REID. Mr. President, has all time the Democratic side is as professional on the bill and bring debate to a close of Senator MCCONNELL expired? as you can get, led by two of America’s so we could move on with the bill. Un- The PRESIDING OFFICER. There is all-time great Senators: LEVIN and fortunately, I believe we have had two 11⁄2 minutes remaining on the Repub- WARNER. I say that without any degree votes so far on this bill. I think one of lican side. of trying to make them feel good. It is those was on an amendment I offered, The Senator from Virginia is recog- the truth. They are two of the great or it was accepted. nized. Senators in the history of our country. In any event, I think they have ac- Mr. WARNER. Mr. President, this They have worked as hard as they cepted two amendments, we have had will be one of the most difficult votes could to put together a Defense author- two votes, and I am informed that over that I will have had to cast in my al- ization bill. Now, let’s assume we don’t the past three Department of Defense most 30 years in the Senate. I must say do anything to that bill and cloture is authorization bills, we had a rollcall to my dear friend, the chairman of the invoked and we pass that bill. Wouldn’t vote average of 21 votes per bill. That committee, we have worked together that be a great time to celebrate here? is about right for a Defense authoriza- these years and we just made our last Because you know what would happen? tion bill. This is one of the most impor- efforts in the cloakroom to try and We would have a conference with the tant bills we have each year. There is a bridge the gap—I respect both sides— House and work out whatever dif- lot of Member interest. The committee bridge the gap. We failed, and now we ferences in their bill and our bill.

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8825 This is about earmarks? Oh, come on. our troops and enhance our national ator WARNER, won’t unless we invoke We have had congressionally mandated security. cloture. We need to do that so that he spending since we have been a country. Just a few things: For men and can participate in coming up with the Why? Because our Founding Fathers women in uniform, this bill will give final bill that will lead to a conference set the country up that way. We have almost a 4-percent increase—exactly with the House of Representatives. For three separate branches of government. 3.9 percent increase—a pay raise—to 30 years—as I have said on the floor be- We don’t have a king. We have a Presi- our troops and other military per- fore, I don’t know his predecessors—I dent. He doesn’t make all the deci- sonnel. Do they deserve it? Of course served with a number of them—but the sions. Benjamin Franklin and all of they do. If this bill doesn’t pass, do State of Virginia could not have had a those men who met in Philadelphia they get it? Of course they don’t. This better Senator than JOHN WARNER. wanted us to have three separate will mean more money in the pockets They could have had one as good but branches of government and they de- of military families struggling to make nobody better. These two men have termined what our duties would be in it from one paycheck to the next. It done their very best. I accept the prod- the Constitution. One of them is to de- will help returning heroes afford a uct they have given us, the product we termine the spending. That is our role. place to live or go back to school. We have right here, now, today. I accept it. That is our obligation. Now, are these invest in Defense health programs for Let’s pass it. Let’s invoke cloture on two men trying to hide something from men and women which, among other it, and if there are germane postcloture the American people, trying to sneak things, prevent the need to raise amendments, we will take care of something in to help a military base TRICARE fees. This bill will fight ter- those. That is what these men do. someplace in America? No. Everything rorism and protect our national secu- Now, I want to say one other thing. is transparent. This earmark is only rity, and to tell James Proctor and Let’s not forget that the ranking Re- one of the issues of the day to give people who have served gallantly in publican on the Armed Services Com- somebody something to talk about, to this military that we are not moving mittee is Senator JOHN MCCAIN. I un- talk about how bad government is. forward on this because minority derstand the Presidential campaign During the past 8 years, our Armed rights aren’t protected? takes candidates away from what goes Forces—the best trained, the most cou- This bill funds international non- on here. Both parties realize that. But rageous armed forces the world has proliferation efforts to combat weap- it certainly would have helped move ever known—have been stretched to ons of mass destruction as well as pro- this legislation forward if the ranking the limit. I don’t say this; our military grams that will help us prepare the member of this committee, the Repub- commanders say it. Both civilian and homeland for chemical or biological at- lican nominee for President, had shown military leaders of our country say we tacks. This bill will increase funding leadership and a commitment to this have to help our military. History will for special operations command to cause by talking to his fellow Repub- remember that during these years, de- train and equip forces and support on- licans and saying: Come on, we need to spite tremendous strain, our military going military operations. If we hear get this passed. Not a word publicly or accomplished everything asked of them one thing when we go to Afghanistan, privately, that I know of. with heroism and success. We have all they will tell you how important spe- We have a chance to do the right been to the funerals. I never under- cial operations officers and troops are. thing by coming together to invoke stood until I went to Afghanistan what This bill provides funds supporting the cloture and move toward passing this Shane Patton went through as a SEAL development and use of unmanned aer- legislation. I hope all Senators, Demo- in Afghanistan. I went to that funeral ial vehicles. crats and Republicans, will join to and I thought why is a SEAL in Af- Creech Air Force Base—named after move forward so we can honor and ghanistan. There is no water there. He General Creech who ended his career promptly care for our military fami- is there doing the things they are and his life in Nevada—was named lies, while enhancing our country’s trained to do—going after terrorists— after him, a great military officer. In- ability to meet the security challenges and he was killed in the process. It dian Springs Air Base, it used to be we face. won’t be easy to rebuild our Armed called. It is midway between Las Vegas Let me say that, while I talked about Forces. It must be a priority of our and the Nevada test site. This facility JOHN WARNER, I want to close by talk- next President to give them proper was going to be closed, until they de- ing about CARL LEVIN. I, too, don’t rest, proper training and equipment termined these drones were some of the know all of his predecessors. I do know when they are deployed, and proper most important things in the military, a little history. There could have been physical and mental health care when and this legislation takes into consid- a Senator as good as CARL LEVIN from they return from combat. eration how important unmanned aer- Michigan but no one any better. Part of my security detail as the ma- ial vehicles are. This legislation helps We deserve this legislation. The jority leader—because people don’t like reinforce special intelligence capabili- country deserves this legislation. what I do and say, I have had people ties within the Army and the Marine These two managers deserve this legis- threaten me. I have had as a part of my Corps. This is a very good piece of leg- lation. Let’s invoke cloture. It will security detail a guy by the name of islation, an important step toward re- give us an opportunity to complete this James Proctor. Since I was assistant building our Armed Forces and pro- legislation. I hope we can do that. leader and leader, he has been with me tecting the American people. I ask unanimous consent that Sen- all that time, but it has been inter- I wish I had words adequate to ex- ator LEVIN be given 2 minutes to close rupted by three tours of duty to Iraq. press my personal appreciation—and I the debate. He is an Army officer. Three tours of can speak for everyone on this side of The PRESIDING OFFICER. Without duty. He leaves his little family and the aisle—for the work done by Chair- objection, it is so ordered. heads off to Iraq. For James Proctor— man LEVIN and JOHN WARNER. There The Senator from Michigan is recog- to tell him we are not doing a Defense are no two more honorable people in nized. authorization bill because of earmarks the world; whether they are rabbis, Mr. LEVIN. Mr. President, I thank or because we didn’t have enough time priests, ministers, there is no one who the leader and I thank Senator WARNER to debate it, it is laughable, and he has more credibility and honesty than for his statement in support of cloture. would laugh. They would all laugh. It these two men. I have had conversa- It is a difficult and courageous vote. I is unfair. tions with these two fine Senators, commend them on it. So next January 20, I guess, we will where they said: This is what I am The issue here is not earmarks; the see what we can do to move forward, going to do. Do I need to check back issue is a perception that is being per- because we have to rebuild our Armed with them and ask: Do you really mean petrated that it is about earmarks. Forces. In the meantime, Congress can what you said? No. Their word is their This green book is our committee re- begin, I hope, to do something in the bond. Once they have said it, that is it. port. It lists all of the items to be interim. We can begin now by passing I feel very bad. Senator LEVIN is added to it and subtracted. This white the Defense authorization bill, a sen- going to have another opportunity to book is our bill. It incorporates the sible, bipartisan bill that will honor do one of these bills, but this man, Sen- charts and lines from the committee

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8826 CONGRESSIONAL RECORD — SENATE September 16, 2008 report and is incorporated into this bill tional Defense Authorization Act for tell all Senators that Senator WARNER as law. The lines here—add-ons, sub- Fiscal Year 2009, shall be brought to a and Senator LEVIN are going to do ev- tractions, all of the requests of the close? erything they can to process this bill. President that weren’t touched, by the The yeas and nays are mandatory We are going to complete this bill by thousands—are incorporated by ref- under the rule. tomorrow night, and we will get the erence in our bill. The clerk will call the roll. bill to conference. The amendment of Senator DEMINT, The bill clerk called the roll. We can get a bill. Everyone who has who wants to eliminate the incorpora- Mr. DURBIN. I announce that the something they want to do, talk to tion by reference, has exactly the oppo- Senator from Delaware (Mr. BIDEN), these two managers and they will do site effect. All the line items that were the Senator from Massachusetts (Mr. the best they can. This is an important added or subtracted would not be part KENNEDY), the Senator from Massachu- bill, and the Senate realized that. I of the bill if the DeMint amendment setts (Mr. KERRY), and the Senator think this is really a good day for the were agreed to. They would remain in from Illinois (Mr. OBAMA) are nec- Senate. the committee report without incorpo- essarily absent. Mr. President, I suggest the absence ration by reference in the bill. It goes I further announce that, if present of a quorum. exactly the opposite direction of mak- and voting, the Senator from Massa- The PRESIDING OFFICER. The ing ‘‘earmarks’’ part of law. chusetts (Mr. KERRY) would vote clerk will call the roll. The Warner amendment, on the other ‘‘yea.’’ The bill clerk proceeded to call the Mr. KYL. The following Senators are hand, would incorporate not just by roll. reference but all of the language in the necessarily absent: the Senator from Mr. MENENDEZ. Mr. President, I ask thousands of lines in the bill. The prob- Texas (Mr. CORNYN), the Senator from unanimous consent that the order for lem is that it would take so much Florida (Mr. MARTINEZ), and the Sen- the quorum call be rescinded. time, according to the Government ator from Arizona (Mr. MCCAIN). The PRESIDING OFFICER. Without Further, if present and voting, the Printing Office, to do that, we probably objection, it is so ordered. Senator from Texas (Mr. CORNYN) could not get to conference and back to Mr. MENENDEZ. Mr. President, I ask the Senate unless we had a lameduck would have voted ‘‘nay.’’ The PRESIDING OFFICER (Mr. unanimous consent to speak as in session. We don’t know that we will. morning business with the time to run SANDERS). Are there any other Sen- We cannot jeopardize this bill, which postcloture. means so much to the men and women ators in the Chamber desiring to vote? The yeas and nays resulted—yeas 61, The PRESIDING OFFICER. Without in the Armed Forces, by a requirement nays 32, as follows: objection, it is so ordered. that achieves no purpose because the THE ECONOMY lines are already incorporated by ref- [Rollcall Vote No. 200 Leg.] YEAS—61 Mr. MENENDEZ. Mr. President, erence, that achieves only the percep- there is no doubt Wall Street and Main Akaka Hagel Reed tion of a purpose, which apparently Street are in a crisis. The floodgates meets some political needs of people Baucus Harkin Reid Bayh Inouye Roberts from the subprime storm have ripped who are out campaigning. That is not Bingaman Johnson Rockefeller open and the effects are clearly dev- enough to jeopardize the Defense bill. Boxer Klobuchar Salazar astating—unemployment is up and This bill means everything to the Brown Kohl Sanders markets are down. men and women in the armed services. Byrd Landrieu Schumer Cantwell Lautenberg Smith While I may not be able to predict It should mean everything to us be- Cardin Leahy Snowe what is coming next, I would like to cause they mean everything to us. We Carper Levin Specter talk a little bit about how we got here. cannot jeopardize this bill by any ac- Casey Lieberman Clinton Lincoln Stabenow Americans may not have been tracking tion which may make it impossible for Stevens Cochran Lugar the exact moves and, I believe, the neg- us to bring back a bill from conference. Coleman McCaskill Sununu ligence on the part of the Bush admin- I wish to end by again complimenting Collins Menendez Tester Warner istration that has led us to this point, Senator WARNER. He has been abso- Conrad Mikulski Dodd Murkowski Webb lutely wonderful in trying to work out but we certainly understand the con- Dole Murray Whitehouse sequences. a unanimous consent agreement. I Dorgan Wicker Nelson (FL) For New Jersey, my home State, fi- treasure our 30 years together. I wish Durbin Nelson (NE) Wyden we could end this with a cloture vote Feinstein Pryor nancial losses on Wall Street mean job that would allow us to finish positively NAYS—32 losses at home. I am worried about the 1,700 employees of Lehman Brothers in the great effort he has put in. I hope we Alexander Craig Hutchison can get 60 votes for cloture. Allard Crapo Inhofe Jersey City. I am worried about the Barrasso DeMint Isakson 6,000 employees at Merrill Lynch in CLOTURE MOTION Bennett Domenici Kyl Hopewell. I am also worried about The PRESIDING OFFICER. Under Bond Ensign McConnell the previous order, pursuant to rule Brownback Enzi those families and others who are Sessions going to have to face foreclosure or XXII, the clerk will report the motion Bunning Feingold Shelby Burr Graham Thune watch their home values plummet. And to invoke cloture. Chambliss Grassley Vitter I am worried about millions of retirees The assistant legislative clerk read Coburn Gregg Voinovich as follows: Corker Hatch and people approaching retirement who are going to realize that their life sav- CLOTURE MOTION NOT VOTING—7 ings are under attack and diminishing We, the undersigned Senators, in accord- Biden Kerry Obama ance with the provisions of rule XXII of the Cornyn Martinez as quicksand below their feet. Standing Rules of the Senate, hereby move Kennedy McCain Everyone is demanding to know what to bring to a close debate on S. 3001, the Na- The PRESIDING OFFICER. On this got us here. Well, what got us here to tional Defense Authorization Act for Fiscal vote, the yeas are 61, the nays are 32. a large degree is that for the last 8 Year 2009. years we have had an administration Carl Levin, Patrick J. Leahy, Bernard Three-fifths of the Senators duly cho- sen and sworn having voted in the af- that has turned a blind eye to financial Sanders, Robert P. Casey, Jr., Claire markets and deregulated at every turn, McCaskill, Sheldon Whitehouse, Ben- firmative, the motion is agreed to. jamin L. Cardin, Robert Menendez, Bill Mr. DURBIN. Mr. President, I move playing Russian roulette with our Nelson, Charles E. Schumer, Richard to reconsider the vote by which the economy. Their regulatory changes Durbin, Thomas R. Carper, Patty Mur- motion was agreed to and to lay that gave lenders the chance to invent new ray, Amy Klobuchar, Jon Tester, Jeff motion on the table. ways to make bad loans and to pass off Bingaman, Harry Reid. The motion to lay on the table was the risks on investors. The PRESIDING OFFICER. By unan- agreed to. The Federal Reserve had a power imous consent, the mandatory quorum The PRESIDING OFFICER. The ma- given to it long ago by a Democratic call is waived. jority leader is recognized. Congress to fight predatory lending. The question is, Is it the sense of the Mr. REID. Mr. President, I want to For more than 7 years of the Bush ad- Senate that debate on S. 3001, the Na- express my appreciation to everyone. I ministration it failed to use it. If they

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8827 had acted, many predatory lenders charge of the regulatory process, ap- reason there are regulators is to make wouldn’t have been allowed to pedal pointed by the Bush administration, sure there is balance at the end of day. bad loans, which investment banks ultimately could not see. But when those who are supposed to be bought and then went bust and spurred So even in the face of all that, we had the cops on the beat—the regulators— this crisis. the White House issue numerous veto hit the snooze button instead of going There are so many parts to this pat- threats against the bill that was crit- into action so we can prevent or miti- tern of deception and neglect. In 1994, a ical to try to get to the very root cause gate what we are now facing, we see Democratic Congress passed the Home- of what is happening in America the consequences. owner’s Equity Protection Act. It was today—the housing foreclosure crisis— Some of my colleagues on the other the first statute to fight predatory which has created this ripple effect in side of the aisle call this scheme ‘‘the lending. That was in 1994. That law all our financial institutions. Yet they ownership society,’’ which means mandates that the Federal Reserve were issuing veto threats—veto today: You are on your own. A strong must issue regulations to prohibit abu- threats. How could you be so blind or belief in this scheme has led Senator sive and deceptive practices. But how how could you be so much in the inter- MCCAIN, in the face of this crisis, to re- long did it take the Federal Reserve to ests of one sector that you are unwill- peat the same old claim yesterday that do so? It took the Federal Reserve 14 ing to mitigate the risks on behalf of the fundamentals of the economy are years—from 1994—to implement these the American people? strong. Housing foreclosures are regulations. This is not new. Look at 2005. In 2005, defying gravity, and he continues to Senator Sarbanes, the former chair- the House of Representatives—I was a make statements that defy reality. man and sometimes ranking member of Member there at the time—passed a bi- Great financial institutions collapse, the Banking Committee, and Senators partisan GSE reform bill by a vote of and Senator MCCAIN has generally sup- SCHUMER and DODD have repeatedly in- 331 to 90. GSEs are those Government ported deregulation as the answer. troduced legislation to protect against entities; that is, Fannie Mae and That is like trying to say you want to predatory lending. Not once has any Freddie Mac. We wanted to have a take cops off the street to deal with a Republican been a cosponsor in the strong reform bill. It was offered by riot. Senate. Yet we have been hearing a lot Republicans. Mike Oxley, the chairman I have a real concern as we now move about Senator MCCAIN suggesting that at that time, a Republican, working forward. We are where we are as a re- all of a sudden he has seen the light. with BARNEY FRANK, offered the bill. It sult of economic and regulatory poli- But he wasn’t here all those years. passed overwhelmingly. In the House of cies of the Bush administration that Even after reaching a bipartisan Representatives—I served there for 13 JOHN MCCAIN thinks are the sound agreement on the Foreclosure Preven- years—I can tell you, when you get a underpinnings of a good economy and tion Act and its successor, the Housing vote of 331 to 90, that is about as bipar- how we continue to move forward. It is and Economic Recovery Act of 2008 in tisan as you can get. unacceptable. That is not change. That June, Republican Senators delayed the That bill was offered here by Senate will not change the course of where we final passage of the legislation for Democrats exactly as it passed the are headed in this economy. That will weeks—for weeks. Between the two House. But it was blocked by the White not change the course of the con- bills, Republicans had six filibusters to House. Even Mike Oxley, the former sequences to millions of Americans. prevent the passage of this legislation. Republican chairman of the House This is not just about wealthy inves- Notwithstanding what was happening committee, said recently: tors. Look at the consequences. Look throughout the country, as a member We missed a golden opportunity that would at what is happening. When Lehman of the Senate Banking Committee in have avoided a lot of the problems we are Brothers has to close, not only are March of 2007—well over a year and a facing now if we had not had such a firm ide- those 1,600 jobs in New Jersey at risk, half ago—I raised the prospect of a tsu- ological position at the White House and the but it affects all of those who had nami—my word—of foreclosures. But Treasury and the Fed. What did we get from mortgages, all of those who used a the administration said: Oh, no, that is the White House? We got a one-finger salute. service, all of those who bought a prod- an overexaggeration. Unfortunately, I His words, the chairman of the House uct, all of those who went out to eat in wish they had been right and I had Financial Services Committee, which restaurants, all of those who, in fact, been wrong. But the fact is, we haven’t passed the bill in a big bipartisan vote. employed someone else to give them a even seen the crest of that tsunami We couldn’t get it through here in the service while they were working. The take place. Senate. ripple effect is very significant. A few months later, as foreclosures I find it incredibly difficult to see When people get their statements for mounted, they assured us that the that one of our colleagues who is run- their retirement accounts, whether it problems we were concerned about ning for President, Senator MCCAIN, be a 401(k) or a thrift savings or what- might bring broader consequences to now talks about all of these issues. He ever, we are going to see what that the economy. But oh, no, all those who has a new ad out suggesting he is a re- means to people in real life. Some are came before our committee, all the fi- former. But he was part of the same going to look and say: I am going to nancial leaders of this administra- Bush views. He basically was in sup- have to keep working because I cannot tion—the Secretary of the Treasury, port of most lifting of regulations. continue this way. the head of the Federal Reserve, and So as the tsunami approached—the I want to echo what one of my distin- the regulatory side of the Securities one that we were told, when I raised it guished colleagues, the Senator from and Exchange Commission—oh, no, a year and a half ago, they couldn’t Illinois, said a few weeks ago in Colo- those problems would be contained to see—the administration was consist- rado: only the housing market, even though ently on the back side of that tsunami, Enough. Enough of more of the same. they couldn’t even see the foreclosure watching it sweep toward us, watching Enough denial about our challenges. It is crisis being the tsunami it has become. while the American people got washed time to develop solutions. In July I asked them about the pros- under. We look forward to having the Sec- pect of a bailout of Fannie Mae and We have had 8 years of our regu- retary of the Treasury before the Freddie Mac, but they couldn’t foresee latory entities. Who are they? The Se- Banking Committee this Thursday. that either or they were misleading the curities and Exchange Commission, the There are very tough questions to be committee. I see the distinguished Federal Reserve, the OCC—the Office of answered, not only about what has hap- chairman of the Banking Committee is the Comptroller of the Currency under pened but what we are doing as we here, and he will recall they were asked the Treasury Department. Instead of move forward. head on. They asked for incredible au- being the cops on the beat to ensure we It is enough of more of the same. thorities. Yet they could not foresee have a marketplace that is balanced— Enough denial about our challenges. It the possibility, even as the mortgage yes, we believe in a free marketplace is time to develop solutions. I believe crisis continued to rear its ugly head in and, yes, we believe in free enterprise, we have to act fast to provide an eco- dimensions that some of us predicted a but an unregulated marketplace, as we nomic stimulus package targeted to year and a half ago. Those who are in found, is one that has excesses. The provide relief to those most in need, in

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8828 CONGRESSIONAL RECORD — SENATE September 16, 2008 ways that stimulate our economy and MCCAIN, that this economy has all the Mr. LEVIN. Mr. President, now that infrastructure. right underpinnings and all the right cloture has been invoked on our bill, Let’s be clear, we have to recognize regulatory processes. That is a fantasy we are going to be working very hard the potential for what we call moral world. It is a world that ultimately with Senators who have germane hazard. We can’t have everyone on Wall Americans cannot afford. They cannot amendments that have not been Street think they can go to any excess afford that type of thinking in terms of cleared to see if we can make progress whatsoever and the Government will where we go over the next 4 years. on such amendments. We not only re- bail them out. But at any given time in I look forward to those opportunities, quest that Senators who have such this process we have to look at what moving forward this week and the amendments come promptly to the entity creates the risk. We are in one next, to try to turn the course of where floor to meet with us or our staffs, but of the most precarious moments in our we are for all Americans and for our we also have to recognize that any financial history. What entity creates Nation as a whole. such amendment, if it is not in a perhaps a systematic risk, something Mr. President, I yield the floor. cleared package, would require con- that creates such a widespread risk The PRESIDING OFFICER. The Sen- sent, given the parliamentary situa- that we have to look at that as an indi- ator from Connecticut. tion. We have a cleared package al- Mr. DODD. Mr. President, I will be vidual case and determine whether ready, which I think is upwards, per- there is a different governmental ac- very brief. I commend our colleague from New haps, of 90 amendments or so, which we tion to be recognized. Jersey, a wonderful member of the Sen- would hope to add to before we offer it In general, as we move forward, I cer- ate Banking Committee who has been to the Senate by unanimous consent. tainly hope the legislation Senator invaluable over the last 18 months as After Senator WARNER has an oppor- DODD and Senator SHELBY worked on we confronted a morass of problems tunity to speak, I think we will put in together, that went through six filibus- that, as he very properly and accu- a quorum call and do some other work ters and a bunch of veto threats by the rately points out, began building up we need to do in order to get to the President and finally got through into years ago. next stage in this bill. Hopefully, we law, is now actively pursued starting This did not all of a sudden happen 18 can now move promptly on this bill on October 1, which is when it goes months ago. As I said so many times, now that cloture is invoked. I thank into effect. We cannot have any of the this was not a natural disaster. This the Senator from Virginia for all he did Bush administration agencies and reg- was avoidable. That is the great trag- to make that possible. ulatory entities involved not be ready edy of all of this. Had we had regu- The PRESIDING OFFICER. The Sen- to go on October 1 to start providing lators on the beat—as he describes it, ator from Virginia is recognized. relief on those hundreds of thousands cops on the beat—had the legislation Mr. WARNER. Mr. President, as the of foreclosures—not only for those fam- that passed overwhelmingly in this ilies but at the same time to try to distinguished chairman said, we have Congress actually been enforced with some 90 amendments now cleared. Now make those performing loans so we can regulations promulgated dealing with prop up all of these functioning institu- that the issue of going forward is also deceptive and fraudulent practices in at this time clear, there should be an tions at the same time so all of us as the residential mortgage market as Americans get some relief from an impetus to move forward such that the many as 4 years ago—without a single package of 90-some can grow, hopefully economy that is definitely headed in regulation, under the leadership of this the wrong direction. by 30 or 40, before close of business to- administration, being promulgated—we night and possibly we can consider In general, as we move forward we could have avoided the ‘‘no doc’’ loans, have to establish which failures are moving that as quickly as we can. We the liar loans, the subprime predatory are ready to assist all Senators with isolated and which present a systemic lending, luring innocent people into risk to the entire financial system. regard to their amendments filed and, dreadful situations that these brokers indeed, otherwise. We are here to try to Second, it is fundamental to the and lenders knew they could never af- health of our economy that we help ascertain our ability to put them in a ford to pay and then packaging them package that is cleared; if not, despite homeowners stay in their homes. The and branding them triple-A mortgages housing market is not just a center of the parliamentary situation, to help and selling them off as quickly as they them secure a vote. the crisis, it is also a pillar of our soci- wrote them to get paid off themselves The PRESIDING OFFICER. The Sen- ety. Taking steps to shore it up makes and then pass on the responsibility to ator from Michigan is recognized. sense on so many levels. Especially as someone else. All of that history is re- this school year gets underway, we plete as to how this situation unfolded. Mr. LEVIN. Mr. President, we will, of can’t sit back and watch children get Now, of course, they want to avoid the course, do our very best, working with thrown out not only from their homes blame for the consequences—this crowd Senators, to add to this package. There but pulled from their schools. does—for what happened. are some possibilities there. Again, I Third, we absolutely must hold ad- The Senator from New Jersey laid it wish to alert Senators to the fact that ministration officials and regulators out very well. The public needs to we are in a postcloture situation, accountable. I myself promise to do my know that. They also need to know which means they must be germane un- part when they come before the Bank- what we should be doing together to less there is unanimous consent to the ing Committee this week and next. get it right. We have a lot of work in contrary. Also, the parliamentary situ- They better be prepared for some tough front of us to get it right, but in order ation is such that it would require con- questions and some straight answers. I to get it right, we also have to ac- sent. But as the Senator from Virginia am tired of hearing that you could not knowledge what went wrong, and there wisely points out, we are going to do foretell what some of us were telling is a long history of what went wrong our very best to not be limited to tech- you and others about the tsunami of here. nicalities if we can get consent of the foreclosures. We could have stemmed I welcome the remarks of my col- body to obviate those technicalities. the tide. We could have acted in a regu- league and thank him for his leader- Mr. President, I suggest the absence latory process to make sure that was ship and look forward to working with of a quorum. minimized. him. The PRESIDING OFFICER. The When you are asked what is the pos- I suggest the absence of a quorum. clerk will call the roll. sibility of a bailout of Fannie Mae and The PRESIDING OFFICER. The Freddie Mac, I am tired of being told The legislative clerk proceeded to clerk will call the roll. call the roll. you can’t foresee that happening, and The legislative clerk proceeded to just a month and a half later you have call the roll. Ms. STABENOW. Madam President, I a very significant bailout—and you Mr. LEVIN. Mr. President, I ask ask unanimous consent that the order can’t tell us how much the taxpayers unanimous consent that the order for for the quorum call be rescinded. will be on the hook for it. the quorum call be rescinded. The PRESIDING OFFICER (Mrs. I am tired of being told by some of The PRESIDING OFFICER. Without MCCASKILL). Without objection, it is so our colleagues, such as Senator objection, it is so ordered. ordered.

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8829 THE ECONOMY something else Senator MCCAIN wishes their pension plans and they sat in my Ms. STABENOW. Madam President, I to see happen, privatizing Social Secu- office and said: Thank goodness for So- come to the floor, as many of my col- rity. cial Security because that is all I have leagues have on this side of the aisle, What we have seen is an undermining left. to express my outrage and my amaze- of the fundamentals of what has been The same folks who gave us the ment at the continued comments of the strength of our economy—good Enron debacle want to privatize Social one of our colleagues, who is not here jobs, not just supply, but supply and Security, including JOHN MCCAIN. No- but is running for President, Senator demand, putting money in people’s bid contracts, such as Halliburton in JOHN MCCAIN, when even as Wall Street pockets so they can afford to take care Iraq; continual tax cuts only for the now is crumbling—we have seen the ac- of their families and keep the economy wealthiest Americans; weak oversight tions of the last couple days—he con- going. of public industries, regulated indus- tinues to say the fundamentals of the In addition to 605,000 people who have tries, regulated in the public interest; a economy are strong. No matter what lost their jobs since the beginning of disregard for the Constitution; and now caveats he puts on it, he says the fun- this year, we had 3.5 million manufac- the latest economic crisis we see. damentals of the economy are strong. turing jobs lost, and counting, since Fundamentally, the question is: Who That shows how out of touch he is, as 2001, since President Bush came into are we as a country and do we want to is the President whom he works with, office. Madam President, 3.5 million continue these failed philosophies? George Bush, and those who support people were not hallucinating. It was That is not by accident. I suggest this this view that the fundamentals of the not a figment of their imagination that is the result of a world view, a set of economy are strong. they lost their job and that their fami- values and philosophies that does not I remember a while back coming to lies have been put into a tailspin as put the majority of Americans and our the floor after comments were made, as they are now trying to figure out where country first, but basically puts in well, about at that time the chief eco- they go from here to try to keep some place the idea that greed is good and nomic adviser for Senator MCCAIN. semblance of the American dream. you should make it while you can, and Even though this person has now The fundamentals of the economy are we are going to make sure we strip stepped down—also a former col- strong, says Senator JOHN MCCAIN. We away any public protections so your league—from that position, we know he are, in fact, looking at an example of ability is unfettered to do what you is still very close to Senator MCCAIN what it means to live under a philos- want to do for yourself as opposed to and is involved in his efforts and so on. ophy of President Bush, JOHN MCCAIN, what needs to be done on behalf of the That is Senator Phil Gramm, whom I and the Republicans, and what actually American people. served with on the Banking Com- happens if their philosophy comes into If we don’t have a change in this mittee. He was the chairman of the being, in terms of actions. country, we are going to see the same committee when I was first taking my For the first time, in the time I can failed blueprint with more of the same place in the Senate. To hear Senator remember, we saw from 2001 until 18 failed results, disastrous results. That Phil Gramm, who worked so closely months ago a time when the House, the is why I believe so strongly we need a with Senator MCCAIN—we assume, Senate, and the Presidency were all in change in direction and a change of based on their long relationship and the hands of the same party. We had a values to put the American people the positive things Senator MCCAIN has chance to see what they believe in, first. said, that he would play a major role in what are their values, what are their Again, our colleague, Senator a new administration under JOHN philosophies. MCCAIN, who has said that the fun- MCCAIN, and he has said as well, in ad- What we have seen is a philosophy damentals of the economy are strong, dition to Senator MCCAIN repeating that has raised greed to a national vir- has worked to deregulate markets, has that the fundamentals of the economy tue, that has viewed public regulation called himself a deregulator. Unfortu- are strong, we also remember former and accountability in the public inter- nately, it is those policies that have Senator Phil Gramm’s comment that est, to protect public resources or pub- gotten us to where we are today. this is just a psychological recession; it lic funds, as something to be scoffed at This is the most serious financial cri- is all in our minds. He said it is psycho- and to be unwound, to deregulate, to sis since the Great Depression. And logical and Americans have become a make sure that the areas of Govern- what is the plan at this point? To study nation of whiners—a nation of whiners. ment that have responsibility, that are the problem. Senator MCCAIN has said I am wondering if people made it up accountable for our financial systems, today we should study the problem. or if they were hallucinating when our monetary systems, our energy re- We don’t need another commission. they lost their jobs this year; 605,000 sources and other areas, in fact, are What we need are people who will make Americans have lost good-paying jobs not held accountable. sure that the accountability, the over- this year, since this past January. We have seen an administration and sight, the power that is here to stop Were they hallucinating? Was this a a Republican philosophy that doesn’t price gouging, to bring oversight to figment of their imagination? Is it a work for the majority of Americans. It what is going on is actually used. It figment of their imagination that they works for a few. If you are one of the hasn’t been used under this administra- cannot make their mortgage payment folks who is out there trying to make tion. For 6 of the last 71⁄2 years there or put food on the table or pay their sure you can make as much money as was every effort, in fact, to pull back electric bill or go to the gas pump and possible for yourself and your friends, on who was put on boards and commis- be able to refuel with outrageously you may have done pretty well. But sions, the regulators, the overseers. high gas prices? Of course not. Of there has been no willingness to under- They essentially were made up of peo- course not. stand the consequences for the major- ple who didn’t believe in the mission, We have seen the economy unfolding ity of Americans or to accept any re- who didn’t believe they were there for in a way so that only those who are sponsibility to make sure that the ma- the public interest. very wealthy, who have the ability to jority of Americans can benefit from Right now we have a situation where take their capital anywhere in the the resources and opportunities and there are 84,000 Americans who lost world, can succeed under this philos- wealth of this great country. their jobs last month, 90,000 Americans ophy that has been in place, this Re- This culture of greed and corruption, who lost their homes last month. They publican philosophy of no account- supported by Senator MCCAIN and don’t want another study. They don’t ability, no transparency, no one watch- President Bush and others for 6 years want another commission. They want ing in the public interest as people running, has led to Enron. I remember leaders who get it. They want leaders have made decisions that have under- having people sitting in my office who who understand their role in this Gov- mined pensions of working people. had everything in their company’s pen- ernment of ours, this public trust we Heaven forbid, can you imagine if Leh- sion. They worked for Enron. They lost have, not on behalf of just ourselves man Brothers had been managing So- it all. They lost it all because of the and our friends but on behalf of every- cial Security payments for millions of schemes and the lack of accountability body in this country, to make sure the senior citizens, which is, by the way, and oversight. They lost everything in rules are fair, that they are followed,

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8830 CONGRESSIONAL RECORD — SENATE September 16, 2008 and that everybody has a chance to said if you borrow from the Govern- ophy that has run us into extremely make it. That is what it is supposed to ment, you should be regulated. There dangerous economic territory. be about. should be public accountability, trans- Mr. President, I yield the floor, and I I am also reminded that Senator parency, if you are borrowing from the suggest the absence of a quorum. MCCAIN has chaired the Commerce Government. If we want to stop abuses The PRESIDING OFFICER (Mr. Committee and oversaw a massive de- of the public trust, we need to have MENENDEZ). The clerk will call the roll. regulation scheme that gutted our openness, we need to know what is The bill clerk proceeded to call the oversight of these markets. Where is going on in the markets, we need to roll. the accountability? Instead of pro- know what is going on. If we want to Mr. TESTER. Mr. President, I ask tecting consumers and preventing protect the American people, we need unanimous consent that the order for abuse, the special interests ruled. And to regulate dangerous practices, such the quorum call be rescinded. CHAIRMAN MCCAIN oversaw that effort. as predatory lending. The PRESIDING OFFICER. Without The same economic philosophy of the We know there is so much that we objection, it is so ordered. Bush administration joined by Senator need to do right now. First is to ad- Mr. TESTER. Mr. President, are we MCCAIN for the last 8 years has been to dress the hole we are in economically, on the Defense bill or in morning busi- give more and more to those who have and the next is to stop digging, stop ness? the most, ignore the ability of others making it worse. Stop tax breaks for The PRESIDING OFFICER. We are to make sure they can have what they those who have already done so well, on the Department of Defense bill have earned—their job, their pension, even in these terrible circumstances. under cloture. that Social Security is strong, they We need to make sure we are focusing Mr. TESTER. Mr. President, I want can afford to put food on the table and on those who have worked so hard all to take a moment to thank Chairman pay for the gas and be able to have their lives, and their families who are LEVIN and Senator WARNER for their what we all expect as Americans that looking for the opportunity to be suc- willingness to work with me on the will be available to us if we work hard cessful in America. They want to know amendment that has been accepted and follow the rules. they are going to have a fair chance to into the managers’ package. This We have had the same philosophy in do that, that the rules are going to be amendment provides some additional place, the same philosophy that has fair, they are not going to be stacked comfort to family members whose brought us 8 straight months of job against them and in the interest of a loved one is killed while serving in the loss, the same economic philosophy special few, which is what has been military by allowing the Defense De- that has left incomes stagnant while happening since 2001 over and over. partment to pay for travel to a memo- families find themselves spending Let me go back to my original com- rial service honoring a servicemember twice as much on the basics of their ment and look at the 3.5 million manu- killed on Active Duty. life. facturing jobs lost since 2001. Our col- Currently, the law allows for the Real household income is down. league, JOHN MCCAIN, says the fun- services to provide transportation of Imagine, we were lower in 2007 than in damentals of the economy are strong. I family members to a burial service of a the year 2000. Incomes were lower in beg to differ. The fundamentals of the servicemember killed on Active Duty. 2007 than they were in 2000. We are in a economy for Americans working hard Although the law makes this vol- generation of having real concerns, and every day making a paycheck, trying untary, the services, much to their rightly so, that our children’s lives and to make ends meet, worrying about credit, all make this travel available to economic circumstances will not be as whether they are going to have a job, the families. However, current law does good as our own. not allow travel to memorial services. The same philosophy has led to gaso- health care, send the kids to college, put food on the table, pay for the gas With many families split up over long line inching upwards to $5 a gallon, and distances, this can be particularly the same economic philosophy that and all the other things, for them the painful when a parent or sibling of one leaves 47 million people without health economy is not strong. of our fallen heroes cannot afford to insurance, leaving them worried about People are working too hard, making travel to a memorial service held by a whether their children will be cared for too little, and paying too much every unit or even other members of the fam- when they are sick. The same philos- day, and we do not need another study ily. Although some charity groups have ophy has been in place since 2001 with or another commission. We need lead- been able to help these families attend this President with 6 years of no bal- ers who get it, who have the right val- memorial services for their fallen loved ance and accountability, just one world ues, who understand, who have the in- ones, when servicemembers die in serv- view, 18 months of our coming in now testinal fortitude to stand up and fight ice to their country, it is this country’s and slowing the trend down, working for the American people, the middle- hard to bring in some accountability, class families who are sick and tired of moral obligation to help their families even though there are unprecedented what has been going on. in every possible way. This amendment would allow the Republican filibusters to stop us. I can tell you, coming from the great But we have seen a philosophy that State of Michigan, the people of Michi- Secretary of each service to allow fam- has failed. We need to be taking ac- gan have had enough. We have had ily members of fallen heroes to attend tions to stop the fraudulent, risky, and enough. We can’t take more of this. We one memorial service as a way of help- abusive lending practices, and that has can’t take 4 more years of this. We ing to honor those who give the ulti- been proposed over and over again. I can’t take 4 more days of this. We have mate sacrifice—their lives—to our Na- commend Chairman DODD of the Bank- had enough. But to change it, I believe tion. It would be voluntary. The serv- ing Committee and Chairman BAUCUS strongly that we need to understand ices do not have to participate, but at of the Finance Committee and all those this is not just an accident that we are least they would have the option, who have brought forward proposals where we are. It is a conscious philos- which is something they currently do that will make a difference. ophy. It is actions and inactions that not have. We need to modernize the rules for a have been taken by those in charge—by Earlier this year, a constituent of 21st century marketplace that will pro- this President, supported by Senator mine suffered the loss of his son. He tect American investors and con- JOHN MCCAIN, supported by Repub- died in a hospital in Canada after being sumers. We have been proposing those licans in the House and the Senate— injured in Iraq. He was on a transport changes. We also know we have in that have created the situation that flight from Germany to Walter Reed place a series of mechanisms that has fostered the circumstances in when his condition worsened and the would hold special interests account- which we find ourselves. plane diverted to Halifax. When my able and be able to make sure that peo- We can’t do this anymore. We need to constituent’s ex-wife sought to have a ple’s incomes and pensions and the make sure government works for real memorial service for their son in Phoe- economy in general are protected. We people, real people who have had nix prior to the burial at Arlington Na- just haven’t used it. enough. I can’t say it more strongly: tional Cemetery, the Army had to tell I stand with another colleague of We have to stop traveling down the the man, whose son had given his life ours, Senator BARACK OBAMA, who has road we are on, following this philos- for our country, that the country could

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8831 not help him attend that memorial volatile energy markets, so oil could be sis, one of the reasons we are in the service. down this week, but any kind of rumor mess we are in today is because of the I think we can do better. I think we or instability, whether man made or enactment of the Gramm-Leach-Bliley should do better. This amendment will natural, could send those same prices Act in 1999. As you may recall, this leg- allow us to do better. soaring again. islation was responsible for deregu- When a soldier or marine or airman I think it is important the American lating the financial services industry goes to war, the whole family goes to people understand why we got to where by completely repealing the Glass- war. When a servicemember gives the we are today; why we are in a situation Steagall Act. ultimate sacrifice and is killed in serv- where millions of workers are fearful Now, I was a Member in the House of ice to our Nation, we need to do the about being able to heat their homes in Representatives at the time. I was a right thing for the family. That is why the wintertime while workers all over member of the House Banking Com- I have offered this amendment. Again, this country are finding it very dif- mittee when this legislation was being I thank Chairman LEVIN and Senator ficult to fill their gas tanks. Is what debated. I remember that debate very WARNER for working together to help occurred simply bad luck? Are we at well because I was in the middle of it. get this amendment into the managers’ the bottom of the so-called business Let me tell you, I do not mean to be package. cycle? How do these happenings occur patting myself on the back, but I think Mr. President, I yield the floor, and I to what was once the strongest econ- it is important to take a little bit of a suggest the absence of a quorum. omy in the world with the greatest look at recent history. The PRESIDING OFFICER. The middle class? This is 1999 during the debate. This is clerk will call the roll. If we take a deep look at what is what I said as a member of the House The bill clerk proceeded to call the going on in terms of the financial crisis Banking Committee: roll. we are suffering through today and the I believe this legislation will do more harm Mr. SANDERS. Mr. President, I ask volatile energy prices we are suffering than good. It will lead to fewer banks and fi- unanimous consent the order for the through today, we can understand that nancial service providers, increased charges quorum call be rescinded. and fees for individuals, consumers and small both are the result of deliberate policy businesses, diminished credit for rural Amer- The PRESIDING OFFICER. Without decisions made by the Congress and the ica, and taxpayer exposure to potential objection, it is so ordered. administrative negligence on the part losses should a financial conglomerate fail. Mr. SANDERS. Mr. President, I ask of the Bush administration. These de- It will lead to more mega mergers and a to be able to speak as in morning busi- liberate policies were the result, to a small number of corporations dominating ness. significant degree, of the power and in- the financial service industry and a further The PRESIDING OFFICER. Without fluence of corporate lobbyists—who concentration of economic power in our country. objection, it is so ordered. also make huge campaign contribu- THE ECONOMY tions—representing some of the most Unfortunately, that is exactly what Mr. SANDERS. Mr. President, this powerful special interests in the world, is happening today, and I would much week we have learned that Lehman whether it is big oil, big coal or wheth- prefer to have been wrong than right. But on the other hand, former Senator Brothers, one of the oldest financial in- er it is the largest financial institu- Phil Gramm—who I should mention to stitutions in our country, an invest- tions in the world. ment bank that has survived two world What these lobbyists fought for and you has been Senator MCCAIN’s top wars and a Great Depression, has prov- secured was selling deregulation snake economic adviser—at that time had a en that even it could not survive 8 long oil, deregulation snake oil backed with very different opinion of the legislation years of deregulation and lax oversight millions in campaign contributions. which bears his name. Senator Gramm by the administration of George W. That is what I think is the overlying at that time said something very inter- esting about that piece of legislation. Bush. It is going bankrupt. issue as we look at the financial crisis This is what he said: Yesterday we also learned that the facing Wall Street and the soaring and beleaguered Merrill Lynch, the largest volatile prices in terms of oil. Ultimately the final judge of the bill is his- tory. Ultimately, as you look at the bill, you brokerage firm in this country, will be All too often when bad things happen have to ask yourself, will people in the fu- bought out by Bank of America, the because of failures here in Washington, ture be trying to repeal it? I think the an- largest financial depository institution both parties generically blame it on swer will be no. in this country. Now we are also learn- the other and no one stands up and Well, put me down as a Senator who ing that AIG, the largest insurance tries to point out what, where, why believes we need to repeal Gramm- company in the United States, and and, most importantly, who is behind Leach-Bliley. Put me down as a Sen- Washington Mutual, the largest sav- these bad policies. As an Independent, I ator who believes we need to restore ings and loan association in this coun- think that breeds a cynicism and an strong Government oversight of the try, are also in deep financial trouble. anger and a frustration on the part of banking industry. Put me down as The list of troubled banks that the the American people about the polit- someone who believes we need to have FDIC maintains is growing larger and ical system of our country. firewalls in the financial services sec- larger. Well, in this case, I think the Amer- tor so that we do not have the domino In addition, last week, to avert a ican people deserve a little more of an effect we are seeing right now. complete mortgage meltdown, we saw explanation. It has been their hard- There was a reason Congress enacted the Bush administration bail out earned dollars that have been need- reforms of the banking industry in the Fannie Mae and Freddie Mac, putting lessly spent on $4 a gallon gasoline. It 1930s, and that was because we did not tens, if not hundreds, of billions of dol- is their retirement savings and, my want to repeat the mistakes that lars of taxpayer dollars at risk. Earlier God, I wonder all over this country the caused the Great Depression. Failing to this year, we saw the Federal Reserve kind of frustration that exists today have learned from our mistakes, it orchestrate the takeover of Bear with the volatility in the stock market looks as if we are doomed to repeat Stearns, a deal backed by $30 billion in going down 500 points yesterday and them. taxpayer dollars. what people are worried about, whether The lesson here is that left to their At the same time, Americans are their 401(k)s are going to be worth very own devices, company executives will still paying outrageously high prices at much in the future. These are very make poor decisions and put their in- the gas pump. Prices are still over $3.50 frustrating times for the American vestors’ capital at risk. The important a gallon, even though the price of oil is people. lesson here is that poorly regulated fi- now down to almost $90 a barrel. Every In the case of both of these current nancial markets invariably endanger little hiccup to send gas prices up or crises, the financial services and en- the health of the entire economy and, down with virtually no connection to ergy crisis, one of the major actors and of course, as this world becomes more real supply and demand indicators. perhaps the main actor in creating and more interlocked, in fact, the Up to this point, the Republicans in what we have seen today is a former economy of the entire world. the Senate have prevented us from tak- Senator from Texas named Phil In that context, the extreme eco- ing any real action to rein in those Gramm. In terms of our financial cri- nomic ideology of people such as

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8832 CONGRESSIONAL RECORD — SENATE September 16, 2008 former Senator Gramm, and for that Gramm. Yes, you guessed it, it was his the kind of bold changes we need to matter Senator MCCAIN, says that the wife. And Wendy Gramm had become make, for the first time in the modern people of this country should simply head of the CFTC after being on the history of America our children will stand back and allow executives in board of directors of, well, you guessed have a lower standard of living than we Wall Street boardrooms to make deci- it, the Enron Corporation. Even Holly- do. sions with no public oversight that wood could not come up with a plot We are looking at the American have the potential of wrecking our quite so transparent. dream as an American nightmare. We economy. In other words, deregulate The result of this deregulation of the are moving in the wrong direction eco- them, let them do whatever they want energy markets has, according to many nomically as well as in so many other in order to improve their bottom line, experts who have testified before Con- areas. and the Government does not have to gress, allowed speculators on unregu- Since President Bush has been in of- watch to see what the implications of lated markets to artificially drive the fice, nearly 6 million Americans have their decisions are for our country or cost of a barrel of oil up to over $147 a slipped out of the middle class and into for our taxpayers. barrel. poverty. How do you think the fun- I disagree with Senator Gramm’s per- My colleagues, including Senator damentals are strong when 6 million spective. People who want to gamble DORGAN and Senator CANTWELL and more Americans enter the ranks of the their own money are certainly welcome many others, have laid out the way poor? Since Bush has been in office, to do that. But when your actions have that speculators have driven up oil over 7 million Americans have lost the ability to dry up credit for busi- prises in many well-researched presen- their health insurance. Now well over nesses all over our country, when your tations here on the floor and a number 46 million Americans are without any actions can dry up mortgages for peo- of Senate committees. I applaud them health insurance at all, and even more ple who desperately want to buy a for their leadership. But all of this are underinsured. Does that sound like home or stay in their home, when your speculation and all of the millions and the fundamentals of the economy are actions depress the value of Americans’ billions of dollars that Americans have strong? savings, we need public oversight, and spent on exorbitantly priced gasoline Since President Bush has been in of- it should be strong oversight with the would not have happened if it had not fice, over 3 million manufacturing jobs primary mission being to protect the been for the efforts of Senator Gramm have been lost, total consumer debt has American public from the reckless pushing through the so-called Enron more than doubled, median income for greed that has brought us to where we loophole. working-age Americans has gone down are today. As central as Senator Gramm was in over $2,000 after adjusting for inflation. In former Senator Gramm’s world creating the financing and energy dis- They do not get or do not care that view, when it comes to protecting the asters we are currently facing, he was prices on almost everything we con- American consumer and the safety and aided and abetted by the Bush adminis- sume are going up and up and up. soundness of our financial institutions, tration’s willingness to simply look the Today the typical American family is Government is not the answer, Govern- other way. Even with all of the harm paying over $1,700 more on their mort- ment is the enemy, Government is ter- that has been done to the economy, gages, $2,100 more for gasoline, $1,500 rible. But when banks fail, all of a sud- President Bush still refuses to ac- more for childcare, $1,000 more for a den, guess what happens. The Govern- knowledge it. One wonders what world college education, $350 more on their ment has no choice but to intervene to he is living in. health insurance, and $200 a year more prevent the entire economy from col- And, shockingly, Senator MCCAIN is for food than before President Bush lapsing. The Gramm-McCain version is singing from the same song sheet. On was in office. one where profits are private, going to September 15, Senator MCCAIN said: In addition, home foreclosures are the very wealthiest people in this coun- The fundamentals of our economy are the highest on record, turning the try, but risk is public, being assumed, strong. American dream of home ownership by and large, by the middle-class and Does that sound familiar? Well, it into the American nightmare. The un- working people of this country. It is so- should. Since 2001, President Bush and employment rate has skyrocketed. cialism for the very rich, and free en- members of his administration have re- Since January of this year, we have terprise for everyone else. peatedly described the economy as lost over 600,000 jobs. Adding insult to Unfortunately, former Senator strong and getting stronger: Thriving, injury, the national debt has increased Gramm was not satisfied by having set robust, solid, booming, healthy, power- by over $3 trillion, and we are spending up the dominos in 1999 that made our ful, fantastic, exciting, amazing, the $10 billion a month on the war in Iraq, current financial crisis possible. In envy of the world. making it harder and harder to do any- 2000, he decided his loot-and-burn eco- Those are the adjectives used by the thing to help the struggling middle nomics had to be applied to the energy President and members of his adminis- class. markets as well now. This is an tration over the last 8 years. What Is it any wonder that Rick Davis, achievement. First you go after de- economy are they looking at? The fact Senator MCCAIN’s campaign manager, regulating the financial markets, and is, when it comes to the economy, Sen- recently said: ‘‘This election is not then you move to energy. And out of ator MCCAIN and President Bush do not about issues’’? If my economic policies his efforts in energy, of course, the so- get it. Is it a surprise to anyone that were to follow President Bush’s and the called Enron loophole was born. Sen- Senator Gramm, who, until fairly re- economy was in a state of near reces- ator Gramm, who was then Chairman cently, was Senator MCCAIN’s major sion and unemployment was up and of the Banking Committee, was one, if economic adviser on his campaign, de- median family income went down and not the main proponent of the provi- scribed Americans as ‘‘a nation of more people were losing health insur- sion deregulating the electronic energy whiners’’ who are suffering through a ance and more and more people were in market that we now know as the Enron ‘‘mental recession’’? debt, the foreclosure rate at the high- loophole. Was it a surprise? What is surprising est rate in American history, if all Was this done through a deliberative is that Senator MCCAIN is trying to those things were happening, I would process with debate and hearings? Ac- pass himself off as a maverick when he certainly also run on a campaign not tually, no, it was not. This very impor- looks to the same people, people such having anything to do with issues tant provision was slipped into a mas- as Senator Gramm, who laid the whatsoever. That is what I would do. I sive unrelated bill with no discussion groundwork for our current economic would run away from all of those and no hearings, and the American peo- problems. issues. That is certainly JOHN MCCAIN’s ple today are paying the price for that. While Senator MCCAIN and President strategy. Who can blame him? The Federal agency that oversees Bush think the fundamentals of our JOHN MCCAIN claims to be offering those energy markets was the Com- economy are strong, while they talk change. But on issue after issue, he is modity Futures Trading Commission, about how robust things are, the re- offering more of the same—more tax the CFTC. Conveniently, the head of ality is the middle class in this country breaks for the very rich, more unfet- that agency at the time was a Wendy is collapsing. And if we do not make tered free-trade agreements that will

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8833 cost our country millions of good-pay- would like to follow, the record speaks that? How does that work. You adver- ing manufacturing jobs, more tax for itself. tise that if people have bad credit, they breaks to big oil companies ripping off Take a look at job creation, how ought to come to you. the American consumer at the gas many new jobs have been created. Here is Millenia Mortgage. They said: pump; in other words, more of George Under President Clinton, almost 23 Twelve months, no mortgage payment. Bush’s failed policies that have led to a million new jobs were created. That is That’s right. We will give you the money to collapse of the middle class, an in- a pretty good record. Did every one of make your first 12 payments if you call in crease in poverty, and a wider gap be- those jobs pay the kind of wages we the next 7 days. We pay it for you. Our loan tween the very rich and everyone else. would like? No. But nonetheless, al- program may reduce your current monthly payment by as much as 50 percent and allow JOHN MCCAIN and George Bush may most 23 million new jobs were created you no payments for the first 12 months. Call be right in one respect: If they are in Clinton’s 8-year term. Under Presi- us today. talking about the wealthiest people dent Bush, less than 6 million jobs have Here is a mortgage company saying: and the most profitable corporations, been created. Come on over here, get a mortgage the economy is fundamentally strong. Under President Clinton, more than 6 from us. We will give you a home mort- Things could not be better for those million Americans were lifted out of gage. You don’t even have to make the people, that small segment of our soci- poverty and into the middle class. first 12 months’ payment. We will ety. In fact, one can make the case— Under President Bush, the exact oppo- make it for you. They don’t, of course, and economists have—that the wealthi- site has occurred. Nearly 6 million peo- say here that what they will do is stick est people have not had it so good since ple who were in the middle class have that on the back of the mortgage and the robber baron days of the 1920s. been forced into poverty. Under Presi- add interest to it. But that is what Right now—this is really quite an as- dent Clinton, median family income they are advertising. tounding fact—the top one-tenth of 1 went up by nearly $6,000. That is a lot Here is Zoom Credit. All of these are percent of income earners earn more of money. Under President Bush, me- television, radio ads. They said: income than the bottom 50 percent. dian family income is going down. That gap between the people on top, The Republican Party for years has Credit approval is just seconds away. Get on the fast track at Zoom Credit. At the who are busy trying to build record- told us they are the party of fiscal re- speed of light, Zoom Credit will preapprove breaking yachts and all kinds of sponsibility above all. Yet, under you for a car loan, a home loan or a credit homes, busy buying jewelry that is un- President Bush, the national debt has card. Even if your credit’s in the tank, Zoom believably expensive—one-tenth of 1 increased by more than $3 trillion. Credit’s like money in the bank. Zoom Cred- percent earn more income than the Under President Clinton, we had Fed- it specializes in credit repair and debt con- bottom 50 percent—that gap is growing eral surpluses as far as the eye could solidation too. Bankruptcy, slow credit, no wider. Also the top 1 percent own more see. Under President Bush, we have had credit—who cares? wealth than the bottom 90 percent. We Federal deficits as far as the eye can That is what Zoom Credit was saying as a nation have the dubious distinc- see. to customers. You got bad credit, you tion of having the most unfair distribu- There is a clear choice to be made have been bankrupt, who cares? Come tion of wealth and income of any major this year. That choice is, does Govern- and get a loan from us. They say: We country on Earth. ment work for all of the people, for the don’t care if you have bad credit. The wealthiest 400 people have not middle class, for working families, for In fact, here is what they also say: only seen their incomes double, their people who are struggling, or do we Get a loan from us. We will give you net worth has increased by $640 billion continue to develop policies which rep- what is called a ‘‘low doc’’ loan or a since President Bush has been in office. resent the people on the top who, in ‘‘no doc’’ loan. If you have bad credit, Can we believe that? The wealthiest 400 fact, have never had it so good since we will give you a ‘‘low doc,’’ which Americans have seen their net worth the 1920s? means we will give you a home mort- increase by $640 billion since George The future of our country is at stake. gage and you don’t even have to docu- Bush has been in office. Today, the I personally believe we cannot afford 4 ment your income for us. You don’t richest 400 Americans are now worth more years of President Bush’s poli- have to prove your income to us. That over $1.5 trillion. At the same time, we cies. is called no documentation. Bad credit, have the highest rate of childhood pov- I yield the floor. come and get a loan from us. No docu- erty; 20 percent of our children live in The PRESIDING OFFICER (Mr. mentation, that is OK. It is unbeliev- poverty. We have working families lin- SALAZAR). The Senator from North able and unbelievably ignorant. ing up at food banks because they don’t Dakota. I pulled this off the Internet. Perfect earn enough to pay for food. Mr. DORGAN. Mr. President, the credit not required. No-income- Apparently, all of that is not good wreckage all of us observed yesterday verification loans. Pretty interesting, enough for Senator MCCAIN and for and the consequences of a 504 point isn’t it? Come and get a mortgage from President Bush. They insist that those drop in the stock market and the con- this company. You don’t have to verify tax breaks be made permanent. In cern in this country about its economic your income, and you don’t need per- George Bush’s and JOHN MCCAIN’s future can be traced to a lot of things. fect credit. Here is a company on the world, those are the Americans who are I wish to talk about some of them for Internet that wants to give you a home struggling. The wealthiest 400 Ameri- a few minutes. I want to show a couple loan. It says: You can get 5 years’ fixed cans just can’t make it on $214 million charts that describe some of the origin payments with a 1.25-percent interest a year. It must be pretty hard to scrape of what has weakened this economy, rate. That is interesting, isn’t it? Of through and get the food and shelter a and then I will talk about how this all course, it is a sham, the 1.25-percent in- family needs, so obviously those are happened. terest rate you get to pay. Again, bad the guys who need a tax break. Almost everyone in this country in credit? Come to us, we will give you a We have had almost 8 years of Presi- recent years has seen ads like this from mortgage. You don’t want to document dent Bush’s economic policies. They Countrywide, the biggest mortgage your income, that is OK. Bad credit follow, of course, 8 years of the policies banker in the country. Countrywide and no documentation. And by the of President Clinton. I think it is im- had an advertisement that said: Do you way, we will give you a 1.25-percent in- portant to say a word to compare what have less than perfect credit? Do you terest rate. happened during those two administra- have late mortgage payments? Have All of us, when we were kids, went to tions. you been denied by other lenders? Call western movies from time to time. In I happened, as a Member of the us. virtually every movie, they had the House, to have disagreed with Presi- Countrywide Bank, the biggest bank guy who came into town with a couple dent Clinton on a number of issues. But of its type in America, saying, essen- old mules driving a slow wagon. He I think when we look at his overall tially: You have bad credit? You need wore a silk shirt and striped pants, and economic record and contrast it to the money? Call us. Most people would he was selling snake oil. It cured every- overall economic record of President probably hear that, as I did over the thing from hiccups to the gout. He was Bush and the policies Senator MCCAIN years, and think: How can they do selling snake oil from the back of his

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8834 CONGRESSIONAL RECORD — SENATE September 16, 2008 wagon. This is not in an old western. anything goes, and the economy col- Where is the due diligence? How on These are companies on the Internet, lapsed into a Great Depression. Frank- Earth could that have happened? on television, on radio. lin Delano Roosevelt, with the New Now, there is a kind of a no-fault I go back to Countrywide, the largest Deal, said: This isn’t going to happen capitalism and no-fault politics going mortgage broker. Do you have less again. Banks were failing. Banks were on around here. No-fault capitalism— than perfect credit? Come to us. We closing. Depositors couldn’t get their all of those folks who said: Get Govern- want to invite you, get a mortgage money. Franklin Delano Roosevelt and ment off my back. We want to run from us. That is what happened. the New Deal repaired that economy by these big enterprises the way we want Now the stock market collapses on saying: We are going to separate com- to run them. Then they run them into Monday. What is the relationship? The mercial banking institutions from the ground, and they need to have the relationship is that our economy is other risky enterprises. We are not Federal Reserve Board open—for the reeling from the wreckage of the going to let banks get engaged in real first time in their history—a window subprime loan scandal. What does that estate and securities and insurance. We for direct lending to investment banks mean, subprime loans? All of this are not going to do that because this is just as they do to regulated banks. starts with some brokers out there who the very perception of safety and Why? Because they were worried they are selling mortgages. Then they sell soundness. Safety and soundness deter- were too big to fail. If an enterprise to it a mortgage bank, and then the mines whether a bank is safe and such as that is too big to fail, why is it mortgage bank securitizes it and sells sound. If you injure that perception by too small to regulate? Why is it that it up to a hedge fund, and the hedge fusing risky enterprises—real estate, all of the regulators sat on the side- fund probably sells to it an investment for example, and securities under- lines while something that most people bank. What they do is, they loan writing—with traditional banking don’t even know about—$40 trillion in money to people with bad credit and issues, you do a great disservice to this value of credit default swaps were out provide no documentation or they loan country’s economy. So they were sepa- there, and much of it is as a result of money to people with good credit and rated with the Glass-Steagall Act, for dramatic borrowing and leverage. It is give them teaser rates with resets and example. a house of cards with a big wind com- prepayment penalties that the people In 1999, the Financial Modernization ing, and that wind can play havoc with can’t possibly pay 3 years later and set Act was passed. I was one of eight this financial house of cards. them up for failure and then sell these Members of the U.S. Senate to vote So the no-fault capitalism portion of loans in a security. As they used to against it because it repealed the it is that they do what they want to pack sawdust in sausage, they pack bad Glass-Steagall Act. Oh, they all prom- do—make a lot of money. We all know loans with good loans. They slice them ised firewalls. It didn’t mean a thing. I what the compensation has been: unbe- and dice them and sell them up the warned then, and I warn again now: lievable money for those at the top stream. These are the significant consequences who are running these organizations. So now you have loans, a cold call to of forgetting the lessons of the 1930s Then it takes a nosedive, and a bunch a person who had a home by a broker which are going to haunt us, and they of our bankers and others convene in saying: You are paying 6 percent inter- are haunting us. New York and they just say: All right, est rate on your home mortgage? We So what happens is they not only who are we going to save, who are we will give you one for 1.25 percent. We passed a Financial Modernization Act going to prop up, or who are we going will dramatically reduce your home which repeals Glass-Steagall and the to give a direct loan to? That is no- mortgage monthly payment. And by very things we put in place to protect fault capitalism. No-fault politics: It is the way, we are not going to emphasize against this sort of thing—the min- all of those who were running around this—in fact, we may just mention it in gling of risky enterprises with bank- here thumbing their suspenders saying: a whisper—ultimately, it is going to ing—they not only do that, but George Well, we have to deregulate, we have to reset, and it will be 10 percent in 3 W. Bush wins the Presidency and he do this and that. Let’s ignore the les- years. And by the way, you don’t have comes to town and he appoints regu- sons of the 1930s. Let’s get rid of Glass- to document your income. At any rate, lators—i.e., Harvey Pitt to run the Se- Steagall. Let’s let commercial banks you can’t pay with your income at a 10- curities and Exchange Commission, get engaged in securities underwriting percent rate in 3 years, but it doesn’t just as an example. What is the first and other risky activities. All of those matter, you can sell that home and flip thing he says when he gets to town? He folks are now saying: Well, that is not it between now and then. Don’t worry says: You know something, you should what caused this problem. In fact, they about it. That is the kind of thing that understand that the Securities and Ex- are still strutting their stuff saying the was going on with an unbelievable change Commission is a business- economy is strong. amount of greed—with the brokers, friendly place now. Right. Well, that is The economy is not strong. The econ- with the mortgage companies, with the what happened in virtually every area omy is dramatically weakened as a re- hedge funds, the investment banks, all of regulation. People were appointed sult of what these folks did to the grunting and snorting and shoving in who didn’t have the foggiest interest in economy and as a result of this admin- the hog trough here. They were making regulating. The whole mantra was to istration’s decision that regulation is a massive amounts of money, and the deregulate everything: Don’t look, four-letter word. I have news for them: whole thing collapsed, just collapsed. don’t watch, don’t care. As a result, in Regulation has more letters than four, Now, how does it happen that it helps virtually every single area, we saw this and regulation is essential to the func- cause a bankruptcy in France or a kind of greed and unbelievable activity tioning of this kind of Government. bankruptcy in Italy or a 504-point drop develop across this country. I think free markets are very impor- of the stock market here in the United So now we went through this period tant. I believe in capitalism and the States on Monday and so many other with a housing bubble built up with free market system. I don’t know of a failures? Bear Stearns doesn’t exist these subprime mortgages, and then we better allocator of goods and services anymore, Lehman Brothers is going saw the whole thing go sour and people than the marketplace, but I also under- bankrupt. I could go through them all. wonder why. It is not surprising at all stand the marketplace needs a regu- How is it that all of this is happening, that it went sour. What is surprising to lator. There need to be regulators who all of this carnage and wreckage as a me is how so many interests got make certain that when the market- result of this greed? sucked in by this and how unbelievably place gets out of whack, somebody Let me go back just a bit. Two damaging it has been to the American calls it back in. Regulators are like things, it seems to me. No. 1, there are economy. referees, except these regulators in this a bunch of folks who were fast talkers How could they have missed what administration had no striped shirts who decided they were going to sell was going to happen here? We had some and no whistles to call fouls because Congress on financial modernization. of the biggest investment banks in the they didn’t think anything represented We have learned this lesson. This les- world that were buying securities that a foul. It was ‘‘let the buyer beware.’’ son existed in the 1930s. In the Roaring had bad value mixed in with securities, Now, what happens next? Well, re- Twenties, it was ‘‘Katy, bar the door,’’ and they didn’t know it, they say. grettably, none of us know. We don’t

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8835 know what will happen after yesterday. is just to say to all those who are run- banks, they looked at that and said: We don’t know what will happen the ning in support of President Bush’s This is really good. We have a huge, rest of the week. We don’t know what policies: Boy, let’s just keep doing it. built-in, high income from these mort- else is there. Some say the biggest But it seems to me—the old law says gages, and the borrower can’t get out reset of mortgages will occur in the when you are in a hole, stop digging. It of it because there is a prepayment fourth quarter of this year, which is seems to me the American people un- penalty. That is why they paid pre- very soon now. We don’t know the con- derstand that very well. miums for it. That is why they all sequences of all of this because this It is time now—long past the time— thought they were getting rich. It was was a spectacular, unbelievable trail of for this country to get back to fun- unfettered greed. They all made money greed that, in my judgment, has dra- damentals and for the American people in the short term, and the American matically injured this country. to insist from their Government the economy takes a giant hit in the What is important now is for us to kind of responsibility that Government longer term. try to create some sort of a net to should manifest in terms of its respon- Finally, let me just say I don’t think catch this economy and then put it sibility to protect the marketplace, to this is a case that is like all other back on track with really effective reg- protect the American taxpayer, to try cases. We are challenged in lots of ways ulation—and decide that we are going to do things that help all Americans, on many different days here in the to have sound business principles and help lift up all Americans. Congress. This is a different challenge. we are going to relearn the lessons of My colleague described a bit ago the This country’s economic future hangs the past. We shouldn’t have to relearn circumstance in this economy where in the balance, and the question is, them, but we will. We understood the the wealthy have gotten very Will we have the leadership? Will we lesson from the 1930s. We taught it in wealthy—much wealthier—and then exhibit the leadership to do this? our colleges, about the fundamentally the folks in the rest of the population Mr. President, the answer has to be unsafe condition of merging risk with are struggling to figure out: How on yes. We cannot decide no, maybe, banks. Yet, I can recall when it was Earth can I keep my job. We have all of maybe not. The answer has to be that sold to the Congress as financial mod- these folks sending these jobs to Asia. this requires new, aggressive leader- ernization. It was the big shots getting How do I keep my job? Or if I keep my ship. We have a Presidential campaign their way, and we all pay a dramatic job, why is it that they withdraw my going on now, and I happen to support penalty for it. health insurance and no longer provide Senator OBAMA. I think it is critically ‘‘The economy is strong,’’ my col- health insurance? Why do I not have a important to look at the history and leagues have said. Senator MCCAIN— retirement program anymore? That is the record of the candidates to find out and I wouldn’t normally mention him what working people face every single who is going to support the kinds of on the floor of the Senate. He is out day. They get out of bed, many of them things that are necessary to get this there running for the Presidency. But work two jobs, they work hard, trying country back on track. since Senator MCCAIN grabbed pictures to do the right thing, and they discover I have talked previously a couple of me and several others and put them the folks at the very top are getting by times about John Adams’ description in television commercials to suggest, with really huge incomes. of trying to put a new country together here is what is wrong, perhaps maybe By the way, last year the top income when he would write to Abigail. He it is OK for us to say what is wrong are from a hedge fund manager was $3.6 bil- traveled a lot and was in Europe as those who were such cheerleaders for lion—$3.6 billion—and they pay a 15- they were trying to put this new coun- taking apart that which was to protect percent top income tax rate. Isn’t that try together. He would write to his this country in the first place—Glass- unbelievable? By the way, they don’t wife Abigail and say plaintively in let- Steagall and others. They knew bet- even pay that, in most cases, because ters: Who will provide the leadership ter—should have known better—and they try to run their carried interests, for this new country of ours? Where what is wrong is those who aided and as they call it, through tax-haven will the leadership come from? Who abetted and carried the wood in the countries in a circumstance where they will be the leaders? Then in another last 7 years to say to regulators: Don’t can defer compensation and avoid pay- one he would lament that there is only bother regulating. Get your paycheck. ing even the small 15 percent income us—me, George Washington, Ben We will give you a paycheck. Just be tax rate. So when somebody comes Franklin, Mason, Madison, and Jeffer- friendly. Don’t regulate. Don’t look. home making $3.6 billion and the son. Those who did that did a great dis- spouse says: How did you do today, In the rearview mirror of history, service to this country, in my judg- honey? Well, pretty well. This month, I that was some of the greatest human ment. made $250 million. That is a far cry talent ever assembled, and this country Now, I recognize this is not a polit- from what most American working was given leadership. Every generation ical system in which one side is always people would understand or accept, in asks, where will the leadership come all right and one side is always all my judgment. When you see what is from? If ever there was needed new wrong. That is not the case. It just is happening at the top compared to what leadership to step forward and say we not. Both political parties for a long is happening to the rest, there is some- need a new way, not the old way, we time have contributed much to this thing wrong with this economy. need to put America back on track, to country. But I would say this: We have Now, I have just described in some get our grip and our traction, it is now. been through a period that I think is detail what happened to cause this I think our economy is in significant devastating to this country’s economic subprime collapse. To most people—it peril. I know what happened to it. The future. A lot hangs in the balance. is a term that is almost foreign— question is, how do we fix this mess? I think if the American people want subprime lending. Yet much of it is at How do we deal with the wreckage? I more of the same, then they can sign the root of the dramatic problems we hope the debate we have—let me just up for that. They can say: Well, we now have: the failure of investments, say in this discussion about running for kind of like what is going on here. We the difficulty of all kinds of institu- President, I have seen so much dishon- like the notion that regulators were tions that loaded up with this. Why did esty with respect to the television told not to regulate and complied ag- they load up? Because the people who commercials that have been run and gressively. We like the notion that we sold these subprime mortgages put pre- the making of issues and about the have nearly 700,000 people who have payment penalties in them. They load- phrases that are used. It is unbeliev- lost their jobs just since the first of ed them with very low interest rates at able to me. The one thing I will say I this year. We think that has gone real- the front end and then a reset to very admire is that BARACK OBAMA—whom I ly well. We like the fact that the price high interest rates on the back end—in have campaigned with in this coun- of oil doubled from July of last year to most cases, 3 years—and then put pre- try—is talking about the future, about July of this year. We think that is just payment penalties in so you couldn’t issues, and he is talking about raising fine. If people really believe that—we get out of it. So when they securitized up this country, which I think is so im- like all of these things—there is cer- it and sold the security upstream to portant at this point. We need that tainly a way to continue that, and that the hedge funds and the investment leadership now.

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8836 CONGRESSIONAL RECORD — SENATE September 16, 2008 Mr. President, with that, I am going Waste in excess inventory is part of a Traumatic Stress Disorder and Trau- to speak later this week on some other bigger problem of waste in the Depart- matic Brain Injury Centers of Excel- issues. I wanted to talk today about ment of Defense. The distinguished lence and conduct pilot programs to the issue of the two points that I think chairman of the Armed Services Com- better treat these disorders. The bill have dramatically weakened this coun- mittee, Senator LEVIN, recently cited a will also require that the Department try: One, the salesmanship of the Fi- GAO report detailing $295 billion in of Defense to develop uniform stand- nancial Modernization Act. Eight of cost overruns and an average 21-month ards and procedures for disability eval- us—myself included—voted against delay on Pentagon weapons systems. uations of recovering servicemembers that in the Senate, believing that it The GAO report recommends strong across military departments. I com- would damage this country, and indeed congressional oversight of defense pro- mend the committee for continuing to it has. Second, the arrival of George W. grams. To that end, the reporting make quality military health care a Bush, who decided he didn’t believe in mechanisms of the Sanders-Feingold- priority. Government regulation. We now see Whitehouse amendment increase over- This legislation provides vitally im- the carnage and wreckage that has re- sight and prevent waste in the Depart- portant increases in authorized funding sulted from that. This country deserves ment of Defense. for our National Guard. This bill shows better and will get better, in my judg- Our amendment calls on the Depart- a clear and substantial commitment to ment. ment of Defense to cut waste and fix restore and improve the homeland de- Mr. WHITEHOUSE. Mr. President, as the problem. This measure would re- fense capabilities and readiness of our we debate legislation to authorize more quire the Secretary of Defense to cer- National Guard. I am very pleased that than $600 billion for our Armed Forces, tify to Congress that the Army, Navy, the committee increased the authoriza- we have a responsibility to the tax- Air Force, and Defense Logistics Agen- tion of the Army’s procurement budget payers who foot the bill to make sure by $391.2 million for dual-purpose cy have reduced by half their spare that money is being used as carefully equipment in support of National parts that are on-order and already la- and as wisely as possible. Today I rise Guard readiness. In addition to giving in support of an amendment offered by beled as excess. Until this certification our National Guard the tools and is completed, the amendment would Senator SANDERS and cosponsored by equipment they need, this bill also en- withhold $100 million from the defense myself and Senator FEINGOLD that ex- hances Guard and Reserve family sup- poses unnecessary and wasteful spend- budget for military spare parts. port programs. Our amendment would also require ing within the Department of Defense In closing, I commend Chairman the Department of Defense to come up and offers a solution. LEVIN, Senator WARNER, and their From storage warehouses to assem- with a plan to reduce the acquisition of staffs for putting together a bill of bly lines, the Department of Defense is unnecessary spare parts and improve which we can all be proud. This bill sitting on billions of dollars in parts its inventory systems. It would then sends the message that we in the Sen- and supplies that are in excess of the require quarterly progress reports to ate remain committed to supporting military’s requirements—everything Congress, including reports on the lev- our troops, both in combat and at from jet engines to springs to fuel els of excess inventory that are on home. tanks. hand and on-order. Mr. REED. Mr. President, I commend The Army, Navy, Air Force, and Our troops deserve the best equip- the work of my colleagues on the other Department of Defense agencies ment and the best supplies we can give Armed Services Committee on this im- currently possess $30.63 billion of them to help them do their jobs and portant legislation which I hope Presi- unneeded spare parts, in addition to keep us safe. Leaving billions of dollars dent Bush will sign into law prior to $346 million of excess spare parts that of spare parts to rust away in ware- the start of the fiscal year. In this tre- are on-order—parts that are still being houses just doesn’t serve that purpose. mendous time of transition for our produced or delivered, but that the I urge my colleagues to support this military, we owe them a law that will military already knows it doesn’t need. commonsense, important amendment. enable the DOD to execute this year’s The Air Force has $18.7 billion of excess Ms. MIKULSKI. Mr. President, I rise budget efficiently and effectively. spare parts on hand; the Navy has $7.7 today to express my thanks and appre- This bill provides a budget that al- billion, and the Army has $4.21 billion. ciation to Chairman LEVIN and Senator lows the DOD to plan for future On-order excess spare parts are at WARNER for their outstanding efforts threats, combat current threats, and lower but still unacceptable levels. The on the bipartisan National Defense Au- provide for the welfare of our brave Air Force has $1.3 billion in excess thorization Act for Fiscal Year 2009. veterans both past and future. It should also be noted that this parts on-order; the Navy has $130 mil- I would especially like to recognize year’s bill and the authorization bills lion, and the Army has $110 million. Senator WARNER for his stewardship of It gets worse. Branches of the Armed this bill this year, and his determined from the preceding 28 years could not Forces have millions of dollars of spare role managing the bill on the floor over have been completed without the parts on-order that they have already the last few weeks. Senator WARNER statesmanship and the strong bipar- decided they will dispose of when they has played a role in most of the De- tisan leadership provided by Senator arrive. If a retailer like Target or Best fense authorization bills over the last JOHN WARNER. This will be Senator Buy or Kmart controlled its inventory 40 years. His sage counsel and steady WARNER’s final authorization bill dur- ing his nearly 30 years on the Senate so poorly that it had $307.48 million hand on the rudder are an invaluable Armed Services Committee, on which worth of items on-order that it knew it asset to the Senate in meeting our he also served as chairman and ranking would have to dispose of immediately commitment to our men and women in member. In his nearly 60 years of serv- upon arrival, that company would uniform. I would like to thank the committee ing our country both in and out of uni- quickly go bankrupt. The Air Force form, he has always upheld his com- has $235 million of spare parts marked for supporting $1.3 billion in military construction and base realignment and mitment to our brave service men and for disposal; the Navy has $18.18 mil- women with the highest standards of lion, and the Army has $54.3 million. closure funding for Maryland’s mili- tary installations. This funding is espe- honor and integrity That’s a nonsensical and unacceptable I would first like to point out a few cially critical to ensuring that the waste of taxpayers’ money. of the highlights of the National De- The Defense Department’s inventory BRAC transition of Walter Reed Army fense Authorization Act currently management systems are a big part of Hospital to the National Military Med- being considered: the problem: they are incompatible, ical Center in Bethesda, MD, stays on Authorizes a much needed 3.9 percent duplicative, and ill-equipped to the track. We owe it to our wounded war- across-the-board pay raise for the task of managing such a massive vol- riors and their families to give them brave men and women of our armed ume of parts and supplies. Don’t just world class medical facilities that they forces. This pay raise is a half percent take my word for it. Over the last dec- deserve. higher than that requested by Presi- ade, the General Accountability Office This bill also makes great strides in dent Bush; has repeatedly flagged these inventory continuing to focus on the Dole- Fully funds Army readiness and management systems as ‘‘high-risk,’’ Shalala recommendations that outline depot maintenance programs to ensure vulnerable to fraud, waste, abuse, and the best courses of action for improv- that forces preparing to deploy are mismanagement. If American compa- ing the quality of care for our wounded properly trained and equipped; nies can get this right, there is no rea- warriors. This bill requires the Depart- Authorizes $26.1 billion for the De- son that America’s military can’t. ment of Defense to establish Post fense Health Program, which includes

VerDate Mar 15 2010 22:10 Mar 19, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2008SENATE\S16SE8.REC S16SE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY September 16, 2008 CONGRESSIONAL RECORD — SENATE S8837 the $1.2 billion necessary to cover the so that it can rapidly and efficiently the Department’s investments in inno- rejection of the administration pro- produce the materiel needed by our Na- vative science and technology pro- posal to raise TRICARE fees; tion’s warfighters; and grams by nearly $400 million to over Requires the Secretaries of Defense Increasing investments in research at $11.8 billion; and fully support the Sec- and VA to continue the operations of our Nation’s small businesses, Govern- retary of Defense’s initiative to in- the Senior Oversight Committee to ment labs, and universities so that we crease university defense basic re- oversee implementation of Wounded have the most innovative minds in our search funding and increase the level Warrior initiatives; and country working to enhance our na- by nearly $50 million over the Presi- Fully funds the eight ships requested tional security. dent’s request. in the President’s budget, including Specifically, some notable initiatives In the area of force protection, the full funding for the third ZUMWALT in this bill that originated in the bill includes a provision that would in- class destroyer. This ship is critical to Emerging Threats and Capabilities crease the amount and quality of test- maintaining the technical superiority Subcommittee include: ing performed on force protection that our Navy has enjoyed on the Authorizing more than $120 million equipment, such as body armor, hel- oceans throughout the world. The fu- in the area of nonproliferation and mets, and vehicle armor, before it is ture maritime fleet must be adaptable, combating weapons of mass destruc- deployed to the field, to ensure that affordable, survivable, flexible and re- tion, including $50 million for our soldiers and marines have the best sponsive. The ZUMWALT class pro- denuclearization activities in North available equipment and protection. vides all of these characteristics as a Korea; $20 million for the Cooperative In order to enhance our ability to Threat Reduction program; and more multimission surface combatant, tai- combat international terrorist groups, than $50 million for chemical and bio- lored for land attack and littoral domi- the bill would fully fund the $5.7 billion nance. It will provide independent for- logical defense programs. Consolidating funding for the Mixed budget request, and add over $20 mil- ward presence, allow for precision Oxide, MOX, program in the National lion for items to help find and track naval gun fire support of Joint forces Nuclear Security Administration, terrorists, including intelligence, sur- ashore, and through its advanced sen- NNSA, as a nonproliferation activity, veillance and reconnaissance packages; sors ensure absolute control of the rather than as part of the nuclear en- extend authorization to the Special Op- combat air space. All of this capability ergy budget as the budget requested. erations Command to train and equip is based on today’s proven and dem- Clarifying that excess fissile mate- forces supporting or facilitating special onstrated technologies. We cannot rial disposition is an NNSA non- operations forces in ongoing military build the same ships that we did 20 proliferation responsibility. operations, and increase the funding years ago and hope to defeat tomor- Establishing a nonproliferation available for this activity; and increase row’s emerging threats. scholarship fund to deal with shortages funding for DOD’s Regional Defense This year I once again had the honor in technical and other fields such as Combating Terrorism Fellowship. of serving as the chairman of the radiochemistry and nuclear forensics. Concerning counterdrug programs, Emerging Threats Subcommittee. Sen- Adding $25 million to nonprolifera- the bill includes a provision that would ator DOLE served as the ranking mem- tion research & development, R&D, for extend the authority to use ber of the subcommittee and working nuclear forensics and other R&D ac- counterdrug funds to support the Gov- together, our subcommittee produced tivities. ernment of Colombia’s unified cam- good results in the bill now before the Authorizing the Cooperative Threat paign against narcotics cultivation and Senate. The Emerging Threats and Ca- Reduction Program and providing an trafficking, and against terrorist orga- pabilities Subcommittee is responsible additional $10 million for new initia- nizations involved in such activities. It for looking at new and emerging tives outside of the former Soviet also includes a provision that would ex- threats to our security, and consid- Union, $1 million for Russian chemical tend the Department’s authority to use ering appropriate steps we should take weapons demilitarization, and $9 mil- counterdrug funds to support law en- to develop new capabilities to face lion for nuclear weapons storage secu- forcement agencies conducting coun- these threats. rity in Russia to complete the work terterrorist activities. In preparation for our markup, Sen- under the Bratislava agreement. This is a good bill. The members of ator LEVIN, the distinguished chairman The bill also includes a number of the committee and the committee staff of the committee, provided guidelines legislative provisions that will enhance have worked many hours to get this for the work of the committee, includ- the Department’s ability to procure bill to the floor. We are a nation at war ing the following two items: and use critical defense technologies, and the military needs this bill. I urge Improve the ability of the armed such as: my colleagues to work together to pass forces to counter nontraditional Legislation that would implement it so that we can conference with the threats, including terrorism and the recommendations of the National House and send it on to the President proliferation of weapons of mass de- Academy of Sciences to help ensure for his signature. struction, and that the DOD develops and procures I suggest the absence of a quorum. Promote the transformation of the printed circuit boards that are trust- The PRESIDING OFFICER. The armed forces to deal with the threats worthy and reliable for use in defense clerk will call the roll. of the 21st century. systems; The legislative clerk proceeded to In response, our subcommittee rec- Legislation that would implement call the roll. ommended initiatives in a number of the recommendations of the Defense Mr. LEVIN. Mr. President, I ask areas within our jurisdiction. These Science Board seeking to enhance the unanimous consent that the order for areas include: Department’s ability to ensure that the quorum call be rescinded. Supporting crucial nonproliferation microelectronics procured from com- The PRESIDING OFFICER. Without programs and other efforts to combat mercial sources, including foreign objection, it is so ordered. Weapons of Mass Destruction (WMD); sources, and embedded throughout de- Supporting advances in medical re- fense systems are reliable and trust- f search and technology to treat such worthy; and conditions as traumatic brain injury Legislation requiring the develop- and post-traumatic stress disorder; ment of a joint government-industry MORNING BUSINESS Increasing investments in new en- battery technology roadmap to ensure Mr. LEVIN. Mr. President, I ask ergy technologies such as fuel cells, hy- that a healthy and innovative defense unanimous consent that the Senate brid engines, and alternate fuels to in- industrial base for batteries exists in proceed to a period for the transaction crease military performance and re- the United States, to support a variety of morning business, with Senators duce costs; of requirements in military vehicles, permitted to speak for up to 10 minutes Increasing investments in advanced computers, and other equipment. each. manufacturing technologies to Relative to science and technology The PRESIDING OFFICER. Without strengthen our defense industrial base funding levels, the bill would increase objection, it is so ordered.

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