S9304 CONGRESSIONAL RECORD — SENATE September 14, 2009 table, but this man is one of the great- the principal symptom of this adminis- Let me take my concerns one by one. est humanitarians who have ever lived. tration’s 8-month record of too many Article I of the Constitution of the He dedicated his life to the develop- Washington takeovers. We have an gives to the Congress the ment of scientific breakthroughs in AIDS czar, an auto recovery czar, a appropriations power and sets up, in order to ease malnutrition and famine border czar, and a water articles II and III, the executive and ju- all over the world. czar. We have a car czar, a central re- dicial branches, a system of checks and One of Dr. Borlaug’s latest efforts gion czar, and a domestic violence czar. balances to make sure no one branch of began in the early 1980s. There wasn’t There is an economic czar, an energy the Federal Government runs away anything in the Nobel armada of prizes and environment czar, a faith-based with the government. Senator ROBERT that represented agriculture, which is czar and a Great Lakes czar. The list BYRD, the President pro tempore of the why he received the Peace Prize for goes on, up to 32 or 34. One of these, for Senate, wrote a letter to President recognition of his research in agri- example, is the pay czar, Mr. Kenneth Obama on February 23. Senator BYRD, culture, and so Dr. Borlaug thought Feinberg, the Treasury Department’s who is often called the Constitutional there ought to be an annual award for Special Master for Compensation. He conscience of the Senate, expressed his research in agriculture and helping will approve pay packages at seven concern over the increasing appoint- with the problems of food production. firms receiving TARP funds, thus de- ments of czars and the re- Through his initiative, the World Food ciding how much pay is too much. This lationship between these new positions Prize was initiated. It recognizes the will affect the top earners at some of and their executive branch counter- achievement of individuals who have the major corporations in America. parts, noting: advanced human development by im- According to Mr. Feinberg, in answer Too often, I have seen these lines of au- proving the quality, quantity, and to some questions, he said: thority and responsibility become tangled availability of food in the world. Just The statute provides guideposts but the and blurred, sometimes purposely, to shield as Dr. Borlaug dreamed, the World statute ultimately says I have discretion to information and to obscure the decision- decide what it is that these people should making process. Food Prize is helping to continue to in- make and that my determination will be That is Senator BYRD speaking. He spire future generations of scientists final. Anything is possible under the law. and farmers to innovate and lift those goes on to say: That is the pay czar. Then we have a The rapid and easy accumulation of power mired in poverty and preserving Dr. manufacturing czar. The manufac- Borlaug’s legacy over the years. The by White House staff can threaten the Con- turing czar’s name is Mr. Ron Bloom. stitutional system of checks and balances. World Food Prize is the idea of Dr. He is also the car czar. We have had At the worst, White House staff have taken Borlaug, and so his scientific work will manufacturing czars before in other ad- direction and control of programmatic areas live on. ministrations, but as Rollcall pointed that are the statutory responsibility of Sen- The World Food Prize exists today out on September 8, Mr. Bloom’s back- ate-confirmed officials. because of the John Ruan family en- ground and new position differs from Continuing: dowing it. They are an outstanding Des the two czars who served under former As presidential assistants and advisers, Moines business family, and they have President George W. Bush: these White House staffers are not account- endowed this. President of the World Bloom is a former union official, remain- able for their actions to the Congress, to Food Prize is the former Ambassador ing close to leaders in organized labor. Cabinet officials, and to virtually anyone but to Cambodia, Dr. Ken Quinn. The Bush’s manufacturing czars were placed in the president. They rarely testify before con- World Food Prize has been the Commerce Department. Bloom, on the gressional committees, and often shield the information and decision-making process be- headquartered in Des Moines since 1992, other hand, was entrusted with a high profile Presidential task force on autos, and will op- hind the assertion of executive privilege. In about 4 or 5 years after its founding. too many instances, White House staff have An extraordinary man, with a bril- erate within an office that has broad author- ity over domestic policy. He will head the been allowed to inhibit openness and trans- liant vision and Iowa common sense auto task force which is in the Treasury De- parency, and reduce accountability. who turned his dreams into reality— partment. More recently, one of the senior Re- that was Dr. Norman Borlaug. According to the policy director for the publicans, Senator KAY BAILEY I yield the floor. AFL–CIO, Mr. Bloom is expected to have a HUTCHISON of Texas, who is the senior The ACTING PRESIDENT pro tem- major role in the development of climate Republican on the Senate Committee pore. The Senator from Tennessee. change legislation. So-called buy American provisions that favor home-grown products, on Commerce, Science and Transpor- Mr. ALEXANDER. Mr. President, tation, said in an op-ed in the Wash- how much time is remaining? and tax credits for domestic industry need to be included, said the policy director for the ington Post: The ACTING PRESIDENT pro tem- AFL/CIO, in the climate change provision. If I oversee legislation and agencies that pore. There is 30 minutes remaining in it’s not done right, the President could lose cover policy areas as vast and varied as morning business, with Senators hav- votes, said the AFL/CIO Policy Director. trade, technology, transit, consumer protec- ing a 10-minute limit. The Senate goes In other words, Mr. Bloom may end tion and commercial regulation. As many as out of morning business at 3 o’clock. up being the protectionist czar as well. 10 of the 32 czars functionally fall under my Mr. ALEXANDER. Will the Chair Then there is the health czar, a very committee’s jurisdiction. Yet neither I nor please let me know when 1 minute is distinguished Tennessean, Nancy-Ann the committee chairmen have clear author- ity to compel these czars to appear before remaining—after 9 minutes? DeParle, a very able woman I know The ACTING PRESIDENT pro tem- our panel and report what they are doing. well. But who is in charge of health The Obama administration presented only pore. The Chair will so advise. care policy? Is it the Secretary of two of these officials for our consideration f Health and Human Services, confirmed before they assumed their duties. We have PUSH OUT THE CZARS by the Senate, accountable to the Con- had no opportunity to probe the others’ cre- gress, accountable, therefore, to the dentials. Mr. ALEXANDER. Mr. President, ac- people of the country? Or is it someone That is Senator KAY BAILEY cording to news accounts, there are ap- in the White House who, an adminis- HUTCHISON of Texas. I ask unanimous proximately 32 or 34 so-called czars in tration official says will ‘‘wake up consent to have printed in the RECORD the Obama White House and govern- every morning focused on health care following my remarks the comments of ment. Respected voices in the Senate— reform, and she is going to be focused Senator ROBERT BYRD and the op-ed of Senator BYRD, a senior Democrat and on that the entire day through?’’ Senator KAY BAILEY HUTCHISON. Senator HUTCHISON, a senior Repub- There have been czars in the White The ACTING PRESIDENT pro tem- lican—have pointed out that these House, at least since President Frank- pore. Without objection, it is so or- czars are an affront to the Constitu- lin D. Roosevelt. Of the 32 or 34 we have dered. tion. They are anti-democratic. They today—and I am using those two num- (See exhibit 1). are a poor example of a new era of bers because there are different reports Mr. ALEXANDER. As the Senator transparency, which is what was prom- and 2 or 3 czar positions are vacant— said, many of these czars have no vet- ised to this country. I would add that only 8 are confirmed by the Senate. We ting by the Senators, no appropriation they are a poor way to manage the gov- have had czars before, but there has requests to be considered by us, no tes- ernment, and they seem to me to be never been anything quite like this. timony given, and answer no hard

VerDate Nov 24 2008 00:15 Sep 15, 2009 Jkt 079060 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\CR\FM\G14SE6.013 S14SEPT1 jbell on DSKDVH8Z91PROD with SENATE September 14, 2009 CONGRESSIONAL RECORD — SENATE S9305 questions. Who is making the policy, election. He continues to demonstrate done. We have a lot of very talented then, on health care, on climate that with his speeches. That is not the people in and around the President. change, on energy? issue. The issue is whether he ought to The President himself is highly intel- I have been reading President James bring into the White House, or closer ligent and well liked by the American K. Polk’s diaries. I may be the only one to him into the government, a large people, as well as he is by those of us in in the United States reading them group of men and women who are ac- the Senate. But sometimes I am afraid these days. They are actually very in- countable to him but not accountable the Obama White House resembles the teresting. He wrote down every night to anybody else. It is not good for the Harvard Law Review meeting where ev- what he did that day, back in the 1840s. President of the United States, I would erybody has a bright idea, everybody is Among the things he did, he had a Cab- submit, to have close to him people he very smart, but everyone forgets that inet meeting every Tuesday and Satur- listens to who do not have to listen to someone has to be the operator. Some- day and every major issue that came anybody else, or at least who do not one has to make it run. Someone has before him, whether it was the war have to listen to the elected Represent- to pick one thing and lean into it for as with Mexico, annexation of Texas, the atives of government. long as it goes. argument with Great Britain about Everyone knows the first thing that My point is, having a large number of what to do in Oregon—he submitted all happens when a new President is elect- bright advisers or czars for every issue those questions to his Cabinet, and ed is people pick offices, and which of- under the Sun, clustered around the then the Cabinet, of course, had to go fice do they pick? They want the office President, coming up with bright ideas, before the Congress and testify. He closest to the President because it is and who are unaccountable to the Con- didn’t always agree with the Cabinet. an unwritten rule in Washington DC, gress for most of what they have to Secretary of State Buchanan dis- that influence in Washington is meas- say, is not the best way for a President agreed with President Polk quite a bit, ured in direct proportion to the num- to pick a single, major issue—let’s say but Secretary Buchanan then had to go ber of inches one is physically from the health care—and lead the country. before the Congress and come back and President of the United States. So the Finally, the number of czars we now tell the President what he heard. That First Lady usually ends up with the have today, who have accumulated was a long time ago, but what the most influence. After that, go right over the last several administrations Framers had in mind was checks and down the hall in the West Wing over to and today have reached a record level balances where the President leads the the Executive Office Building. After a is anti-democratic. Czars are usually country, the Cabinet manages the gov- while you get out around the Cabinet Russians; they are not Americans. ernment, and the Cabinet, as the man- offices. Czars are usually imperialists, not agers of the government, are account- I used to be in one of the Cabinet of- Democrats. able to the people through their elected fices in the first President Bush’s ad- The dictionary says a czar is an auto- Representatives. ministration. It is true, the persons cratic ruler or leader or an emperor or The 32 or 34 czars are not representa- with the most influence with the Presi- king. A czar is not associated with a tive of the way the American system of dent are almost always the men and democracy, not associated with an era government is supposed to work. This women who are closest to him. of transparency. is not an era of transparency. It cre- The other aspect of management that Czars are alien to our way of think- ates so much centralization of power this seems to contravene in the White ing and our way of government. I am that it is the antithesis of freedom, House is the ‘‘one thing at a time’’ afraid czars are becoming a symbol of which is the principal characteristic, idea. One thing at a time is best exem- this administration and the number of the principal aspect of the American plified, I suggest, by President Eisen- Washington takeovers. Let me not just character. hower when he said ‘‘I shall go to use my own words, a New York Times The second aspect of this large num- Korea.’’ He said that more than a half article today said: ber of czars that is troublesome is the century ago when the big issue before But one year after the collapse of Lehman issue of managing the government. the country—there were many, but the Brothers set off a series of federal interven- Forty years ago, I worked in the White biggest issue was the Korean war. tions, the government is the nation’s biggest House for President Nixon under a wise President Eisenhower said, in October lender, insurer, automaker and guarantor man named Bryce Harlow. of the election year, ‘‘I shall go to against risk for investors large and small. I ask unanimous consent to proceed Korea,’’ and in December he went. And Between financial rescue missions and the as in morning business until I am fin- he said to the American people, ‘‘I will economic stimulus program, Government ished with my remarks. spending accounts for a bigger share of the focus my attention on the war in nation’s economy—26 percent—than at any The ACTING PRESIDENT pro tem- Korea. It will have my full attention time since World War II. The Government is pore. Without objection, it is so or- until the matter is concluded.’’ financing 9 out of 10 new mortgages in the dered. Because he was President and be- United States. If you buy a car from General Mr. ALEXANDER. Mr. Harlow had cause he had capacity for leadership, Motors, you are buying from a company that worked for President Eisenhower. He people believed he would probably get is 60 percent owned by the Government. was a wise counselor to President that one thing done. In fact he did be- If you take out a car loan or run up Johnson. He knew a lot about how the cause, in our system of government, your credit card, the chances are good American Government is supposed to people know if the President selects a that the Government is financing both work. He said to me, then a very young single issue—say it is health care, say your debt and that of your bank. And if staff member—he said: it is climate change, say it is resolving you buy life insurance from the Amer- Lamar, our job here in the White House is the debt, or fixing Social Security—if ican International Group, you will be to push the merely important issues out of he picks one thing and throws himself buying from a company that is almost the White House so that we can reserve to into that for as long as he is there, the 80 percent Federally owned. the President only that handful of truly odds are he is going to wear everybody I ask unanimous consent to have Presidential issues. printed in the RECORD this article from George Reedy, who was Lyndon Johnson’s else out. He might have to compromise Press Secretary, wrote: a little bit along the way. September 14 following my remarks. The job of the President is three things—to I used to think this as Governor—and The ACTING PRESIDENT pro tem- see an urgent need, to develop a strategy to the Presiding Officer was once Gov- pore. Without objection, it is so or- meet the need, and persuade half the people ernor in . Often our best pro- dered. he’s right. posals would get changed in the legisla- (See exhibit 2). Mr. Reedy didn’t say anything about ture. I learned a long time ago you Mr. ALEXANDER. Czars are becom- managing the Government of the could either condemn that or say: Well, ing a symbol of a runaway government United States out of the White House. they improved my proposal. Give the in Washington with too many Wash- He talked about leading the country. other side some credit, and go on to the ington takeovers. Dr. Samuel Johnson, Our current President is very skilled next issue. the British moralist a few centuries at persuading half the people he is But a Governor and certainly a Presi- ago, was once introduced to a talking right. He has demonstrated that in an dent who picks one thing can get a lot dog in a London pub. The proud owner

VerDate Nov 24 2008 00:15 Sep 15, 2009 Jkt 079060 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\CR\FM\G14SE6.015 S14SEPT1 jbell on DSKDVH8Z91PROD with SENATE S9306 CONGRESSIONAL RECORD — SENATE September 14, 2009 of the dog asked Dr. Johnson what did Byrd cited President Obama’s recent packages for the biggest recipients of gov- he think of how well his dog talked. memorandum to the executive departments ernment loans, like Citigroup and Bank of Dr. Johnson is reported to have said, and agencies in which Obama noted that, ‘‘A America. A separate group, working closely he was not so impressed with how well democracy requires accountability, and ac- with the Federal Reserve Bank of New York, countability requires transparency.’’ oversees the multibillion-dollar bailout of the dog talked, but that the dog talked ‘‘As you develop your White House organi- American International Group. Ten blocks at all. zation, I hope you will favorably consider the away, at the Federal Reserve, officials are That is about the way I feel about following: that assertions of executive privi- still providing the emergency liquidity that the nearly three dozen White House lege will be made only by the President, or keeps a battered economy moving. czars and government czars. I am not with the President’s specific approval; that To Mr. Obama’s critics, thousands of whom so worried about who they are, I am senior White House personnel will be limited took to the streets of Washington this week- worried that the czars are there at all. from exercising authority over any person, end to protest a new era of big government, any program, and any funding within the all these efforts are part of a plan to dis- I believe that the American people in mantle free-market capitalism. On the addition to respected Senators, such as statutory responsibility of a Senate-con- firmed department or agency head; that the ground it looks quite different, as a new Senator BYRD on the other side of the President will be responsible for resolving president and his team try to define the aisle, and Senator HUTCHISON on this any disagreement between a Senate-con- proper role, both as owners and regulators. side of the aisle, sense this is a prob- firmed agency or department head and White A LIGHT HAND ON THE REINS lem. House staff; and that the lines of authority Far from eagerly micromanaging the com- My respectful suggestion to the and responsibility in the Administration will panies the government owns, Mr. Obama and President is along the same lines as be transparent and open to the American his economic team have often labored might- Senator BYRD and Senator HUTCHISON public,’’ the letter requested and concluded. ily to avoid exercising control even when have made. I believe it is time to push EXHIBIT 2 government money was the only thing keep- ing some companies afloat. these czars out of the White House, and [From , Sept. 14, 2009] A few weeks ago, there were anguished leave the management of government U.S. IS FINDING ITS ROLE IN BUSINESS HARD grimaces inside the Treasury Department as to the managers of government in the TO UNWIND the new chief executive of A.I.G., Robert H. Cabinet and the positions in the de- (By Edmund L. Andrews and David E. Benmosche, whose roughly $9 million pay partments of government who are ac- Sanger) package is 22 times greater than Mr. Obama’s, ridiculed officials in Washington— countable to the Congress. The posi- WASHINGTON.—When President Obama his majority shareholders—as ‘‘crazies.’’ tions who are accountable for their travels to Wall Street on Monday to speak Causing even more unease to policy- confirmation, accountable to answer from Federal Hall, where the founders once makers, Mr. Benmosche insisted that the questions of Members of Congress, argued bitterly over how much the govern- A.I.G.—one of the worst offenders in the accountable for appropriations that ment should control the national economy, risk-taking that sent the nation over the have to be approved by Congress before he is likely to cast himself as a ‘‘reluctant edge last year—would not rush to sell its shareholder’’ in America’s biggest industries they can spend the people’s money. businesses at fire-sale prices, despite pres- and financial institutions. sure from Fed and Treasury officials, who That is the American way. But one year after the collapse of Lehman I ask unanimous consent to have are desperate to have the insurer repay its Brothers set off a series of federal interven- $180 billion government bailout. printed in the RECORD the list of czars tions, the government is the nation’s biggest But in the end, according to one senior of- published in the newspaper Politico on lender, insurer, automaker and guarantor ficial, ‘‘no one called him and told him to September 4. against risk for investors large and small. shut up,’’ and no one has pulled rank and The ACTING PRESIDENT pro tem- Between financial rescue missions and the told him to sell assets as soon as possible to pore. Without objection, it is so or- economic stimulus program, government repay the loans. dered. spending accounts for a bigger share of the A similar hands-off decision was made nation’s economy—26 percent—than at any (See exhibit 3). about the auto companies. Shortly after time since World War II. The government is General Motors and Chrysler emerged from EXHIBIT 1 financing 9 out of 10 new mortgages in the bankruptcy, some members of the adminis- BYRD QUESTIONS OBAMA ADMINISTRATION ON United States. If you buy a car from General tration’s auto task force argued that the ROLE OF WHITE HOUSE ‘‘CZAR’’ POSITIONS Motors, you are buying from a company that group should not go out of business until it WASHINGTON, DC—Senator Robert C. Byrd, is 60 percent owned by the government. was confident that a new management team D–W.Va., the Constitutional conscience of If you take out a car loan or run up your in Detroit had a handle on what needed to be the Senate, has written to President Barack credit card, the chances are good that the done. Obama expressing his concerns over the in- government is financing both your debt and But Mr. Summers strongly rejected that creasing appointments of White House that of your bank. approach, and the Treasury secretary, Tim- ‘‘czars,’’ and the relationship between these And if you buy life insurance from the othy F. Geithner, agreed. new White House positions and their execu- American International Group, you will be ‘‘The argument was that if the president tive branch counterparts, noting that ‘‘too buying from a company that is almost 80 said he wasn’t elected to run G.M., then we often, I have seen these lines of authority percent federally owned. couldn’t hire a new board and then try to run and responsibility become tangled and Mr. Obama plans to argue, his aides say, any aspect of it,’’ one participant in the dis- blurred, sometimes purposely, to shield in- that these government intrusions will be cussions said. The auto task force took off formation and to obscure the decision-mak- temporary. At the same time, however, he for summer vacation in July, and it never re- ing process.’’ will push hard for an increased government turned. Byrd, in his February 23 letter, specifically role in overseeing the financial system to But it will probably be several years before referenced the creation of new White House prevent a repeat of the excesses that caused the government can begin to sell its stake in Offices of Health Reform, Urban Affairs Pol- the crisis. G.M. back to the public, and even then, ac- icy, and Energy and Climate Change Policy, ‘‘These were extraordinary provisions of cording a report issued last week by the noting that ‘‘the rapid and easy accumula- support, not part of a permanent program,’’ independent monitor of the Troubled Asset tion of power by White House staff can said Lawrence H. Summers, director of the Relief Program, some of the $20 billion or so threaten the Constitutional system of National Economic Council at the White funneled to G.M. and Chrysler is probably checks and balances. At the worst, White House. ‘‘You’re seeing a process of exit every gone forever. House staff have taken direction and control day. It’s a process that’s going to take quite WINDING DOWN PROGRAMS of programmatic areas that are the statu- some time, but the prospects are much By contrast, Mr. Obama’s team and the tory responsibility of Senate-confirmed offi- brighter today than they were nine months Federal Reserve have been more successful cials.’’ ago.’’ than generally recognized at winding down ‘‘As presidential assistants and advisers, That process unfolds every day in a bland many of the support programs for banks. these White House staffers are not account- bureaucrat’s haven, an annex connected by Nearly three dozen financial institutions able for their actions to the Congress, to cab- an underground tunnel to the Treasury’s have repaid $70 billion in loans to the Treas- inet officials, and to virtually anyone but main building on Pennsylvania Avenue. ury, and officials predict that $50 billion the president. They rarely testify before con- There, about 200 civil servants—accountants, more will be repaid over the next 18 months. gressional committees, and often shield the lawyers, former investment bankers—over- Indeed, the government has earned tidy prof- information and decision-making process be- see the $700 billion program that pumps tax- it on the first round of repayments. hind the assertion of executive privilege. In payer money into banks, insurance compa- One of the biggest backstops has been the too many instances, White House staff have nies and two of Detroit’s Big Three auto Temporary Liquidity Guarantee Program of been allowed to inhibit openness and trans- companies. the Federal Deposit Insurance Corporation, parency, and reduce accountability,’’ Byrd’s In the main Treasury building, senior offi- which now guarantees about $300 billion letter continued. cials hold veto power over executive pay worth of bonds issued by banks.

VerDate Nov 24 2008 00:15 Sep 15, 2009 Jkt 079060 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\CR\FM\G14SE6.017 S14SEPT1 jbell on DSKDVH8Z91PROD with SENATE September 14, 2009 CONGRESSIONAL RECORD — SENATE S9307 The volume of new guarantees has declined up their price and pushes down their effec- or what limits are placed on their authority. to less than $5 billion a month in August tive interest rates, and ultimately lowers We don’t know if they are influencing or im- from more than $90 billion a month earlier borrowing costs to homebuyers. plementing policy. We don’t know if they this year. The F.D.I.C. announced last week AN ENORMOUS SCALE possess philosophical views or political affili- that it would either end the program en- ations that are inappropriate or over- The scale of the Fed’s intervention has tirely on Oct. 31 or reduce it further by sub- reaching in the context of their work. been staggering. The central bank has ac- stantially increasing the fees that banks This is precisely the kind of ambiguity the quired more than $700 billion in mortgage- have to pay. Framers sought to prevent. Article One backed securities so far, and officials have Similarly, one of the Fed’s biggest emer- tasks the legislative branch with estab- said they will buy up to $1.25 trillion—a goal gency loan programs, the Term Auction Fa- lishing federal agencies, defining what they that should take the Fed until early next cility, has shrunk by more than half in the do, determining who leads them and over- year. To help Fannie and Freddie raise the last 12 months. A second big program, which seeing their operations. Article Two requires money they need to buy mortgages from finances short-term i.o.u.’s for businesses, the president to seek the advice and consent lenders, the Fed is also buying $200 billion of has shrunk to $124 billion, from $332 billion a of the Senate when appointing certain offi- their bonds. year ago. cials to posts of consequence. Thus, author- All told, the government is propping up al- Obama administration officials bristle at ity is shared between government branches, most the entire mortgage market and, by ex- even the hint that their rescue measures guaranteeing the American people trans- tension, the housing industry. have ushered in a new era of ‘‘big govern- parency and accountability. As the government backs away from its ment.’’ As the senior Republican on the Senate rescue operations, economists and others But supporters and critics alike worry that Committee on Commerce, Science and worry about unknown consequences. Some it will be difficult to shrink the government Transportation, I oversee legislation and analysts are already predicting that mort- to anything like its former role. For one agencies that cover policy areas as vast and gage rates will bump higher when the Fed thing, Mr. Obama is determined to expand varied as trade, technology, transit, con- stops buying mortgage securities, poten- government regulation of business and to sumer protection and commercial regula- tially delaying a recovery in housing. beef up federal protections for consumers. tion. As many as 10 of the 32 czars function- But the much bigger puzzle is how the gov- SEEKING MORE OVERSIGHT ally fall under my committee’s jurisdiction. ernment will untangle Fannie Mae and Yet neither I nor the committee chairman Mr. Obama’s proposals to overhaul the sys- Freddie Mac, with their combustible mix of have clear authority to compel these czars to tem of financial regulation would give the taxpayer support, public policy goals and appear before our panel and report what they Fed new powers to supervise giant financial for-profit structures. are doing. The Obama administration pre- institutions whose failure could threaten the ‘‘It will be very difficult to unwind, having sented only two of these officials for our con- entire financial system. stepped in as big as they did,’’ said Howard sideration before they assumed their duties. To limit the dangers posed by insolvent in- Glaser, a senior housing official during the We have had no opportunity to probe the stitutions that are ‘‘too big to fail,’’ the Clinton administration and now an industry others’ credentials. F.D.I.C. would receive new authority to close consultant in Washington. ‘‘There is no Recently we saw the kinds of dangerous de- them in an orderly way. structure, no mechanism, for private inves- tails that can slip by when a powerful federal The administration would impose much tors to come back into the market.’’ official isn’t put through the Senate con- tougher regulation over the vast market for Other experts and policy makers have firmation process. Before assuming the post financial derivatives like credit-default begun to raise broader concerns. Even if the of ‘‘green jobs czar,’’ Van Jones had engaged swaps and other exotic instruments for hedg- Obama administration and the Fed do man- in such troublesome activities as endorse- ing risk. age to shrink the government’s role to ment of fringe theories about the Sept. 11 at- It would also create an entirely new Con- precrisis levels, has the government’s im- tacks. He has ties to a socialist group. The sumer Financial Protection Agency, which mense rescue simply set the stage for more Senate confirmation process would typically would have broad power to regulate most frequent interventions in the future? provide an appropriate forum for identifying forms of consumer lending. ‘‘This crisis, whether it’s because of the and discussing these types of issues and for In his speech on Monday, White House offi- Fed or the Treasury or Congress, has created allowing for public input. Jones’s case high- cials say, Mr. Obama will step up pressure on a lot of new moral hazards,’’ said Charles I. lighted the lack of accountability that is be- Wall Street to accept tougher oversight. Plosser, president of the Federal Reserve coming commonplace under the Obama ad- Even though his proposals have made little Bank of Philadelphia. ‘‘Once you have done ministration. headway in Congress, largely because of the this once, even though it was in a severe cri- While Jones rightly resigned, there are battle over health care, Democratic law- sis, the temptation will be for people to fig- dozens of other administration czars about makers said they were determined to pass ure that in the next crisis you’ll do it again. whom we still know very little. It is comprehensive legislation by next year. You’ve got to figure out a way to say no.’’ Congress’s duty to know who is serving at ‘‘Big government now is the consequence the highest levels of government, what they of too little government before,’’ said Rep- [From , Sept. 13, 2009] are doing, and what qualifications or com- resentative Barney Frank, chairman of the CZARIST WASHINGTON plications these people bring to the job. It is House Financial Services Committee. ‘‘What (By Kay Bailey Hutchinson) also our responsibility to make this informa- you have right now, with the government tion known to the people who have elected owning companies, is the result of insuffi- The Framers of the Constitution knew us to serve and protect them. This is how we cient regulation before.’’ that the document founding our democracy ensure accountability. On a practical level, experts say it will must be the anchor of liberty and the blue- The deployment of this many czars sets a take years for the government to unwind print for its preservation. Wisely, they pro- dangerous precedent that undermines the some of its rescue programs. vided a balance of powers to ensure that no Constitution’s guarantee of separated pow- Thanks to the mortgage crisis and the col- individual and no single arm of government ers. It must be stopped. President Obama lapse in housing prices, private investors could ever wield unchecked authority should submit each of his many policy czars have fled the mortgage market, and the fed- against the American people. to the Senate so that we can review their eral government now finances about 9 out of Nearly 250 years later, these critical lines qualifications, roles and the limits on their 10 new home loans in the United States. of separation are being obscured by a new authority. To deliver anything less is to The Treasury took over Fannie Mae and class of federal officials. A few of them have deny the American public the accountability Freddie Mac, the government-sponsored fi- formal titles, but most are simply known as and transparency the Constitution guaran- nance companies that own or have guaran- ‘‘czars.’’ They hold unknown levels of power tees. teed more than $5 trillion in mortgages, in over broad swaths of policy. Under the the first week of September 2008. Fannie and Obama administration, we have an unprece- EXHIBIT 3 Freddie now buy or guarantee almost two- dented 32 czar posts (a few of which it has [From Politico, Sept. 4, 2009] thirds of all new mortgages. The Federal yet to fill), including a ‘‘car czar,’’ a ‘‘pay PRESIDENT OBAMA’S ‘‘CZARS’’ Housing Administration guarantees another czar’’ and an ‘‘information czar.’’ There are 25 percent. also czars assigned to some of the broadest Politico has compiled a wide-ranging list The cost of keeping the two giant compa- and most consequential topics in policy, in- of President ’s various nies afloat has been huge. The Treasury has cluding health care, terrorism, economics ‘‘czars.’’ The bolded names were confirmed provided Fannie and Freddie with $95 billion and key geographic regions. by Congress, and the italicized names are to cover losses tied to soaring default rates So what do these czars do? Do they advise statutorily created positions created by Con- and losses in value on their own mortgage the president? Or do they impose the admin- gress in legislation. Afghanistan Czar—Richard Holbrooke. portfolios. Analysts predict that the compa- istration’s agenda on the heads of federal AIDS Czar—. nies will need considerably more in the year agencies and offices who have been vetted Auto Recovery Czar—Ed Montgomery. ahead. At the same time, the Fed is buying and confirmed by the Senate? Unfortu- Border Czar—Alan Bersin. almost all the new mortgage-backed securi- nately—and in direct contravention of the Car Czar—Ron Bloom. ties issued by Fannie Mae, Freddie Mac and Framers’ intentions—virtually no one can Central Region Czar—Dennis Ross. the F.H.A. Buying up those securities drives say with certainty what these individuals do Domestic Violence Czar—Lynn Rosenthal.

VerDate Nov 24 2008 03:02 Sep 15, 2009 Jkt 079060 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\CR\FM\A14SE6.007 S14SEPT1 jbell on DSKDVH8Z91PROD with SENATE S9308 CONGRESSIONAL RECORD — SENATE September 14, 2009 Drug Czar—. leader wishes us to finish this fairly The ACTING PRESIDENT pro tem- Economic Czar—. quickly. We have a number of appro- pore. Without objection, it is so or- Energy and Environment Czar—Carol priations bills we want to complete be- dered. Browner. fore the end of September deadline. So AMENDMENT NO. 2355 Faith-Based Czar—. Great Lakes Czar—Cameron Davis. we ask our colleagues to get their Mr. JOHANNS. Mr. President, I ask Green Jobs Czar—Van Jones (resigned on amendments up, and we will move that amendment No. 2355 be called up. Sept. 6). through them as quickly as we can. The ACTING PRESIDENT pro tem- Guantanamo Closure Czar—Daniel Fried. The ACTING PRESIDENT pro tem- pore. The clerk will report. Health Czar—Nancy-Ann DeParle. pore. The Senator from Missouri. The assistant legislative clerk read Information Czar—. Mr. BOND. Mr. President, I echo as follows: International Climate Czar—Todd Stern. what the chairman of our sub- The Senator from Nebraska [Mr. JOHANNS] Mideast Peace Czar—George Mitchell. committee, the Senator from Wash- proposes an amendment numbered 2355. Pay Czar—Kenneth Feinberg. ington, has said. We have had it out Mr. JOHANNS. I ask unanimous con- Regulatory Czar—Cass Sunstein.* Science Czar—. now. We have had this bill out. It has sent that reading of the amendment be Stimulus Accountability Czar—Earl been on the floor since Thursday. We dispensed with. Devaney—statutory position. had Friday and the weekend to look at The ACTING PRESIDENT pro tem- Sudan Czar—J. Scott Gration. it. A number of my colleagues, many pore. Without objection, it is so or- TARP Czar—Herb Allison. on this side of the aisle, have talked dered. Terrorism Czar—John Brennan. about offering amendments. I hope The amendment is as follows: Technology Czar—. they will be ready to bring those (Purpose: Prohibiting direct or indirect use Urban Affairs Czar—Adolfo Carrion Jr. amendments down. I think one or two of funds to fund the Association of Commu- Weapons Czar—Ashton Carter. are going to be offered this afternoon nity Organizations for Reform Now WMD Policy Czar—Gary Samore. (ACORN)) so we can have votes scheduled at 5:30, *Nomination was sent to Senate on April After section 414, insert the following: 20, no action yet taken. as the majority leader has suggested. It SEC. 4ll. None of the funds made avail- is not only the majority leader, it is Mr. ALEXANDER. Mr. President, I able under this Act may be directly or indi- the Senator from Washington and I rectly distributed to the Association of Com- suggest the absence of a quorum. who are urging people to come down. munity Organizations for Reform Now The ACTING PRESIDENT pro tem- This is a very important bill. Every- (ACORN). pore. The clerk will call the roll. body has transportation needs, con- Mr. JOHANNS. Mr. President, I rise The legislative clerk proceeded to cerns, and issues. Housing is such a sig- today to discuss an amendment per- call the roll. nificant challenge right now, given the taining to ACORN, otherwise known as Mrs. MURRAY. I ask unanimous con- situation in the financial markets and the Association of Community Organi- sent that the order for the quorum call the situation with housing. We have zations for Reform Now. be rescinded. many people who are dependent upon Records will indicate that ACORN The ACTING PRESIDENT pro tem- federally supported housing. We need has received $53 million in Federal pore. Without objection, it is so or- to make sure we have the funds made funds—taxpayer money—since 1994. In dered. available to take care of their needs. the current transportation and housing f We have special needs projects such appropriations bill, ACORN is eligible to add to that number, to receive mil- CONCLUSION OF MORNING as the VASH program for veterans with lions more in taxpayer funds from sev- BUSINESS assisted housing that the Chair and I have entered into. That is very impor- eral different accounts and purposes. It The ACTING PRESIDENT pro tem- tant for bringing our service men and could receive money through mortgage pore. Morning business is closed. women home and giving them the right counseling, it could receive money f kind of accommodation. All of these through CDBG, community develop- things are in the context of significant ment block grants, and it could receive TRANSPORTATION, HOUSING AND financial problems in the Federal money from the Neighborhood Sta- URBAN DEVELOPMENT, AND RE- Housing Administration. FHA, if you bilization Program. LATED AGENCIES APPROPRIA- read the papers, is at a crisis point. I The people of Nebraska sent me to TIONS ACT, 2010 have described it as a ticking Washington to protect them from The ACTING PRESIDENT pro tem- timebomb. Regrettably, I think that is waste and fraud and abuse, and they pore. Under the previous order, the still an accurate calculation. We have asked me to change the status quo. I Senate will resume consideration of funds to provide to HUD and to the take that responsibility very seriously. H.R. 3288, which the clerk will report. Secretary of HUD, to the IG and oth- That is why my amendment would pro- The assistant legislative clerk read ers, to deal with problems before they hibit one more penny—one more as follows: become more serious. So we need to get penny—of taxpayer money from going A bill (H.R. 3288) making appropriations this bill passed. to ACORN in the transportation and for the Departments of Transportation, and I hope our colleagues would bring housing appropriations bill. Housing and Urban Development, and related their amendments forward. We will The recent news surrounding ACORN agencies for the fiscal year ending Sep- only be able to vote until 3 o’clock to- is alarming, at a minimum. In fact, it tember 30, 2010, and for other purposes. morrow afternoon. We would appre- is outrageous. Last week, Miami-Dade The ACTING PRESIDENT pro tem- ciate them bringing as many amend- prosecutors issued arrest warrants for pore. The Senator from Washington. ments as they can forward before then, 11 ACORN employees. The employees Mrs. MURRAY. Mr. President, we are this afternoon and tomorrow, so we can are charged with falsifying voter reg- again here on Monday afternoon talk- go about the business of conferencing istration cards. A total of 1,400 voter ing about a very important bill that with the House, getting a measure that registration cards were turned in, and came to the floor last Thursday. That will get to the President so he can sign 888 of those cards were found to be a is the investment in infrastructure, it and put these critically important fake. This means almost three-quarters transportation, and housing across the funds to work. of the voting cards were fraudulent. country. We have many issues impor- I yield the floor. Then, damaging news surfaced regard- tant to many Members who want to get Mrs. MURRAY. I suggest the absence ing hidden videotapes at the Baltimore this bill passed and to the President as of a quorum. and Washington, DC, ACORN offices. quickly as possible so we can move for- The ACTING PRESIDENT pro tem- You will not believe this: They feature ward. My colleague from Missouri and pore. The clerk will call the roll. ACORN employees offering advice on I have worked very hard to put the bill The assistant legislative clerk pro- illegal activities, including tax eva- together. We are here this afternoon ceeded to call the roll. sion, prostitution, and fraud. Today we ready and waiting for our colleagues to Mr. JOHANNS. I ask unanimous con- find out that a different ACORN of- offer amendments so we can get to sent that the order for the quorum call fice—this time in Brooklyn—also of- final passage. I know the majority be rescinded. fered advice on the same topics. I

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