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Congressional Record—Senate S6562 S6562 CONGRESSIONAL RECORD — SENATE June 18, 1998 this country are rhapsodic about one cratic term—a ‘‘concept release’’ to Mr. President, this is a very complex thing, and that is that we got our budg- regulate these privately negotiated in- subject. We do not need to rush to et house in order. The fact that we struments. Essentially, the CFTC judgment. It needs thorough and care- have a surplus this year is nothing wants to vastly broaden its regulatory ful review. It is not the type of thing short of a miracle, and the people know authority over a multitrillion-dollar that attracts a lot of attention on the it. But if we start spending it and market. The problem is that these are Senate or the House floor. As we said, squandering it instead of dealing with negotiations, again, between private it is not a subject that is easily under- the problems we still have we will be firms. Furthermore, if one of the par- stood. But even for those who do not back in trouble. The other day, Mr. ties in the contract is a bank, these understand it, Secretary Rubin, Chair- President, you were in the Appropria- products are regulated by the bank reg- man Greenspan, and Secretary Levitt tions Committee when I made a short ulators. And we do not need a dual reg- all agree with House Banking Com- speech about what a tough time we had ulation. mittee Chairman JIM LEACH that it is a crafting this agriculture bill. The result of the CFTC action will be dangerous direction that Ms. Born is I said, ‘‘You know we don’t have any that a trillion-dollar industry will, heading and one that we should not be money to do much of anything.’’ very simply, be driven out of this coun- going in. A couple of weeks ago, I had a delega- try. It will be driven overseas. It is simply time for us to stop and tion come to me from the Mississippi In case anyone thinks that this is give us a year to review the implica- River delta, the poorest part of my just my opinion, in a move that I have tions of what she is talking about. And, State. Four communities described rarely seen in Washington—we cer- further, the CFTC is up for reauthor- graphically for me how, every time tainly haven’t been seeing lately—in ization next year anyway. If it needs to they have a heavy rain, sewage runs an incredible move, Chairman Green- be done, that would be the time to do down the street and runs down the span, Secretary Rubin, and Secretary it, and we could address it at that ditches. The health consequences of Arthur Levitt issued a joint statement time. that are absolutely incalculable. I said, saying they have ‘‘grave concerns’’ Mr. President, I thank you. I look ‘‘I have looked high and low, looked ev- with what is being proposed to be done forward to working with you on this erywhere in this budget, and every by Ms. Born. program. other budget, trying to find $2.8 million How often do you see the three prin- Mr. President, I suggest the absence to alleviate this problem.’’ Because I cipal financial regulators of the coun- of a quorum. made that speech there in the com- try come together to express grave The PRESIDING OFFICER. The mittee, I think I about got it solved. concern over an issue and rebuke an- clerk will call the roll. But I can tell you, that is going to be other financial regulator? You simply The legislative clerk proceeded to the greatest thing that has ever hap- do not see it happen. They are con- call the roll. pened to those people in those commu- cerned, and the potential for great loss Mr. DASCHLE. Mr. President, I ask nities. When I was a kid, we didn’t un- to this country is just tantamount to it unanimous consent that the order for derstand why people died of typhoid happening. the quorum call be dispensed with. fever in the summer because the out- The Treasury Department has even The PRESIDING OFFICER. Without house was just 10 steps away from the gone to such lengths as to formally objection, it is so ordered. send legislation to the Congress to stop water well. That is sort of the situa- AMENDMENT NO. 2729 this potential regulation. It is the tion these people are living in. Mr. DASCHLE. Mr. President, I have Treasury Department under Secretary Mr. President, we have a lot of unmet an amendment at the desk. Rubin, and they may even go to such needs in this country, and I am not The PRESIDING OFFICER. The voting for any tax cuts until we ad- lengths to stop it. I want to, if I may, Mr. President, clerk will report. dress those. The legislative clerk read as follows: I yield the floor. read a joint statement. This statement Mr. FAIRCLOTH addressed the was issued by Mr. Rubin, Mr. Green- The Senator from North Dakota (Mr. Chair. span, and Mr. Levitt. DASCHLE) proposes an amendment numbered 2729. The PRESIDING OFFICER. The Sen- On May 7, the Commodity Futures Trading ator from North Carolina. Commission (‘‘CFTC’’) issued a concept re- Mr. DASCHLE. I ask unanimous con- COMMODITY FUTURES TRADING COMMISSION lease on over-the-counter derivatives. We sent that reading of the amendment be Mr. FAIRCLOTH. Mr. President, I do have grave concerns about this action and dispensed with. its possible consequences. The OTC deriva- The PRESIDING OFFICER. Without not have an amendment. I simply want tives market is a large and important global to discuss very briefly an issue that I objection, it is so ordered. market. We seriously question the scope of (The text of the amendment (No. may later offer an amendment on to the CFTC’s jurisdiction in this area, and we 2729) is printed in today’s RECORD this legislation, and it is an issue that are very concerned about reports that the I understand you are also interested in, CFTC’s action may increase the legal uncer- under ‘‘Amendments Submitted.’’) Mr. President. It is concerning the tainty concerning certain types of OTC de- Mr. DASCHLE. Mr. President, I sug- Commodity Futures Trading Commis- rivatives. gest the absence of a quorum. sion. The Chairwoman of the Commis- The concept release raises important pub- The PRESIDING OFFICER. The lic policy issues that should be dealt with clerk will call the roll. sion, Brooksley Born, is attempting to the entire regulatory community working reverse the current policy at the CFTC The legislative clerk proceeded to with Congress, and we are prepared to pur- call the roll. that Congress directed over 5 years sue, as appropriate, legislation that would ago. provide greater certainty concerning the Mr. COCHRAN. Mr. President, I ask Mr. President, the issue is this. We legal status of OTC derivatives. unanimous consent that the order for the quorum call be rescinded. have a $28 trillion swaps market in the Furthermore, Chairman JIM LEACH of United States. The vast majority of the House Banking Committee has in- The PRESIDING OFFICER (Mr. SES- these swaps are privately negotiated troduced similar legislation. SIONS). Without objection, it is so or- contracts. They are not traded on any To me, the agreement of this number dered. exchange; they are privately nego- of people on one issue is unprecedented. f tiated contracts. The business has We need to wake up and realize that we grown rapidly in the last few years. It have a rogue regulator—I know of no MORNING BUSINESS has become an important financial tool nicer way to put it—at the CFTC that Mr. COCHRAN. Mr. President, I ask for institutions to hedge their risks. is threatening to drive a trillion-dollar unanimous consent that there now be a But, clearly, it is not a trading issue, business out of the United States. period for the transaction of routine this is a—it is redundant to say—pri- My amendment, if I introduce it, morning business, with Senators per- vately traded issue. These are swaps would simply state that no final rule mitted to speak for up to 10 minutes between those companies. on this can be promulgated during fis- each. Yet, the CFTC now has under review cal year 1999. This is the amendment The PRESIDING OFFICER. Without a ‘‘concept release’’—a good bureau- that I have contemplated. objection, it is so ordered. VerDate Mar 15 2010 03:17 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\1998SENATE\S18JN8.REC S18JN8 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 18, 1998 CONGRESSIONAL RECORD — SENATE S6563 MESSAGES FROM THE PRESIDENT ference on the disagreeing votes of the ments to Rules of Practice and Procedure’’ two Houses on the amendment of the received on June 12, 1998; to the Committee Messages from the President of the on Finance. United States were communicated to Senate to the bill (H.R. 2646) to amend the Internal Revenue Code of 1986 to EC–5571. A communication from the Sec- the Senate by Mr. Williams, one of his retary of Energy, transmitting, pursuant to secretaries. allow tax-free expenditures from edu- law, the report on fissile materials in the cation individual retirement accounts EXECUTIVE MESSAGES REFERRED former Soviet Union for fiscal year 1997; to for the elementary and secondary As in executive session the Presiding the Committee on Armed Services. school expenses, to increase the max- EC–5572. A communication from the Chair- Officer laid before the Senate messages imum annual amount of contributions man of the Federal Energy Regulatory Com- from the President of the United to such accounts, and for other pur- mission, transmitting, pursuant to law, the States submitting sundry nominations poses.
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