S10130 CONGRESSIONAL RECORD — SENATE September 30, 2008 Service located at 2523 7th Avenue East The idea of bartering goods for services ignating the week of October 2, 2008, through in North Saint Paul, Minnesota, as the is by no means a unique idea, but it is October 4, 2008, as ‘‘Celebrate Safe Commu- ‘‘Mayor William ‘Bill’ Sandberg Post an idea that allowed many Virginians nities’’ week. Office Building,’’ was ordered to a third the opportunity to enjoy the arts. The There being no objection, the Senate reading, read the third time, and idea of trading ‘‘ham for Hamlet,’’ as proceeded to consider the resolution. passed. Barter Theatre calls it, was a success, Mr. WEBB. I ask unanimous consent that the resolution be agreed to, the f a success that allowed the theater to endure to today. preamble be agreed to, the motions to KENNETH PETER ZEBROWSKI In 1946, the Virginia General Assem- reconsider be laid upon the table, with POST OFFICE BUILDING bly designated Barter Theatre as the no intervening action or debate, and any statements related to the resolu- The bill (H.R. 6199) to designate the State Theatre of Virginia, the first the- tion be printed in the RECORD. facility of the United States Postal ater in the Commonwealth of Virginia The PRESIDING OFFICER. Without Service located at 245 North Main to receive this distinction, and rightly objection, it is so ordered. Street in New City, New York, as the so. The excellence of Barter reaches far The resolution (S. Res. 662) was ‘‘Kenneth Peter Zebrowski Post Office beyond the lengthy list of famous ac- agreed to. Building,’’ was ordered to a third read- tors who have graced its stage through- The preamble was agreed to. ing, read the third time, and passed. out its years and touches more on its The resolution, with its preamble, efforts to enrich and enhance the cul- f reads as follows: ture of our Commonwealth. S. RES. 662 MURPHY A. TANNEHILL POST The impact of this historic theater Whereas communities across the country OFFICE BUILDING does not go unnoticed in southwest face localized increases in violence and other The bill (H.R. 3511) to designate the Virginia, as it has continually aimed to crime; facility of the United States Postal increase levels of artistic development Whereas local law enforcement and com- munity partnerships are an effective tool for Service located at 2150 East Hardtner in the region. Each year, Barter Thea- tre’s Appalachian Festival of Plays and preventing crime and addressing the fear of Drive in Urania, Louisiana, as the crime; ‘‘Murphy A. Tannehill Post Office Playwrights showcases and honors Ap- Whereas the National Sheriffs’ Association Building,’’ was ordered to a third read- palachian history and culture for all to (NSA) and the National Crime Prevention ing, read the third time, and passed. see upon its stage. I also want to recog- Council (NCPC) are leading national re- nize the efforts of Barter Theatre as sources that provide community safety and f they continue educational outreach crime prevention tools tested and valued by COMMENDING BARTER THEATRE programs to Virginia’s youth. Several local law enforcement agencies and commu- programs, such as the Young Play- nities nationwide; Mr. WEBB. Mr. President, I ask wrights Festival, the Internet Distance Whereas the NSA and the NCPC have unanimous consent that the Senate joined together to create the ‘‘Celebrate Safe Learning Program, the Student Mat- proceed to the immediate consider- Communities’’ initiative in partnership with inee Program, and the theatre’s tour- ation of H. Con. Res. 416, which was re- the Bureau of Justice Assistance, Office of ing company, are in place and continue ceived from the House. Justice Programs, Department of Justice; to foster creativity through play- Whereas Celebrate Safe Communities will The PRESIDING OFFICER. The wrighting and theatrical performances. be launched the 1st week of October 2008 to clerk will report the concurrent resolu- I must note that Barter Theatre re- help kick off recognition of October as Crime tion by title. mains true to its humble beginnings Prevention Month; The legislative clerk read as follows: Whereas Celebrate Safe Communities is de- and pays homage to its history. At signed to help local communities highlight A concurrent resolution (H. Con. Res. 416) least one performance a year cele- commending the Barter Theatre on the occa- the importance of residents and law enforce- sion of its 75th anniversary. brates the Barter heritage by accepting ment working together to keep communities donations for an area food bank as the safe places to live, learn, work, and play; There being no objection, the Senate price of admission. An endeavor rooted Whereas Celebrate Safe Communities will proceeded to consider the concurrent in the ideals of community continues enhance the public awareness of vital crime resolution. to give back to that community today. prevention and safety messages and moti- vate Americans of all ages to learn what Mr. WARNER. Mr. President, I rise I am pleased by the passage of H. today in support of a resolution hon- they can do to stay safe from crime; Con. Res. 416, and I thank my col- Whereas Celebrate Safe Communities will oring a longstanding landmark of Vir- leagues in joining me in support of this ginia’s southwest, Barter Theatre. Lo- help promote year-round support for locally resolution. based and law enforcement-led community cated in Abingdon, VA, Barter Theatre Mr. WEBB. I ask unanimous consent safety initiatives that help keep families, first opened in June of 1933 and re- that the resolution be agreed to, the neighborhoods, schools, and businesses safe mains open to this day, having never preamble be agreed to, the motion to from crime; and closed its doors in its 75 years of his- reconsider be laid upon the table, and Whereas the week of October 2, 2008, tory. that any statements relating to the through October 4, 2008, is an appropriate week to designate as ‘‘Celebrate Safe Com- The roots of Barter Theatre are resolution be printed in the RECORD. found in what it calls ‘‘a unique begin- munities’’ week: Now, therefore, be it The PRESIDING OFFICER. Without Resolved, That the Senate— ning,’’ during a time in our Nation’s objection, it is so ordered. (1) designates the week of October 2, 2008, history when many Americans, includ- The concurrent resolution (H. Con. through October 4, 2008, as ‘‘Celebrate Safe ing Virginians, were focused on finan- Res. 416) was agreed to. Communities’’ week; cial woes. It was the Great Depression, The preamble was agreed to. (2) commends the efforts of the thousands and a young man named Robert of local law enforcement agencies and their f Porterfield was inspired by providing countless community partners who are edu- theater tickets to the many and not CELEBRATE SAFE COMMUNITIES cating and engaging residents of all ages in just to those who could afford them. It the fight against crime; Mr. WEBB. I ask unanimous consent (3) asks communities across the country to was the idea of bartering goods for that the Judiciary Committee be dis- consider how the Celebrate Safe Commu- services that served as the foundation charged from further consideration of nities initiative can help them highlight for this successful endeavor and earned S. Res. 662 and the Senate proceed to local successes in the fight against crime; Porterfield’s theater its name. its immediate consideration. and By trading goods for theater tickets, The PRESIDING OFFICER. Without (4) encourages the National Sheriffs’ Asso- Porterfield was able to fill the seats of objection, it is so ordered. ciation and the National Crime Prevention his theater. The price of admission was The clerk will report the resolution Council to continue to promote, during Cele- 40 cents, but if you had no money to brate Safe Communities week and year- by title. round, individual and collective action in spare, you could bring the equivalent The legislative clerk read as follows: collaboration with law enforcement and in produce. Whether it was vegetables, A resolution (S. Res. 662) raising the other supporting local agencies to reduce dairy products, or a chicken, if it was awareness of the need for crime prevention crime and build safer communities through- worth 40 cents, it was worth entrance. in communities across the country and des- out the United States.

VerDate Aug 31 2005 00:24 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00016 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.030 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10131 Mr. WEBB. I suggest the absence of a banks. We want those people who are in the financial markets. They see ex- quorum. the lifeblood of our economy to be able cessive greed at the heart of the prob- The PRESIDING OFFICER. The to keep it in their local banks, the re- lem. They do not understand how many clerk will call the roll. gional banks, the community banks, corporate executives make more in a The legislative clerk proceeded to and not draw it out and put it in Treas- day than many of them do in a year. call the roll. urys. They do not understand how some rich Mr. BOND. Mr. President, I ask unan- I heard today from a broker in Mis- corporate executives can be paid to imous consent that the order for the souri who has been asked by small leave their company, given a golden quorum call be rescinded. businesses if they can take their depos- parachute for failing at their job, not The PRESIDING OFFICER (Mr. its out and put them in Treasurys. doing it and leaving their company in REED). Without objection, it is so or- That may be a safe move, but right shambles. The folks in Missouri are dered. now that means they are going to re- also afraid this crisis will make them Mr. BOND. Mr. President, I ask unan- duce the deposits in that bank, which victims. They will be victims if we do imous consent that I be permitted to further puts pressure on banks, other not put the taxpayer credit, the Treas- speak as in morning business. institutions, that should not be any ury credit on the line. It has brought The PRESIDING OFFICER. Without part of this problem. down the rich and powerful. It should objection, it is so ordered. Now, Americans are angry about the not bring down Main Street. That is Mr. BOND. Mr. President, I come prospect of using their tax dollars to what we are worried about. today to talk about the subject that is fix Wall Street’s problems. I, like many Back in my home State of Missouri, on the minds of people all over Amer- other Members of Congress, share that I heard from seniors who were asking ica—certainly it is on the minds of my anger. I do not want to be doing this. I me about their retirement accounts, friends in Missouri—and that is the do not want to be supporting this. But parents worried about their children’s Emergency Economic Stabilization Act what I really care about is protecting college savings, families worried about of 2008. Main Street: the individuals, the fami- their checking and savings accounts, Yesterday afternoon, the House of lies, the businesses, the farmers. We farmers worried about where their Representatives voted on this impor- must act to prevent workers from credit lines will be and whether they tant bill. Unfortunately, the bill failed missing paychecks, small businesses will be able to get operating loans so to gain sufficient support on the floor from failing, college savings plans and they can go into the fields next spring despite strong leadership from both the retirements put in jeopardy. to plant, small business owners and Democratic and Republican Parties. This plan includes the transparency I homeowners worried about their mort- The negative outcome of the House called for when I spoke on this floor ex- gages. Folks are worried about their vote is disappointing, and clearly the actly a week ago. I was not satisfied jobs, their children’s future, and their financial markets registered their dis- with the Treasury plan. I said we must financial security. There is also a lot of pleasure. I was further disappointed by do something, but we must add three anger, frustration, and disgust at why finger-pointing that occurred after the things: accountability, increased over- we have gotten to this point. vote. But I am heartened that everyone sight, and increased transparency. I have heard those feelings loudly realizes the financial credit crisis is Well, I called on my House and Senate and clearly. I share those feelings. As I still with us and that Congress needs to colleagues to come together in a bipar- said before, frankly, I don’t want to be get its job done. tisan fashion and work with the admin- here—not as a Senator, not as a Mis- We must get our job done. We will istration and other public and private sourian, not as an American, and not get it done. We owe it to our constitu- sector experts to move quickly and as a family man. But I believe this is ents, our communities, our economy, boldly but responsibly to prevent an- something we have to do. We have no and our country. That means, first, no other financial credit disaster. The choice but to act. We must act because more finger-pointing, no more political leadership and negotiators from both the financial well-being and health of blame games. Those we have to put off sides did just that. all Americans and our economy is in the table. We need to stop the bleeding. It has been just 12 days since the jeopardy. Right now, there is a fire raging. To Treasury Secretary and the Federal However, we must act responsibly. mix the metaphors, we need to stem Reserve Chairman approached Congress That is why I demanded increased ac- the flow of the bleeding or put out the about the need to act on this crisis. countability, strong oversight, and fire. The institutions are asking for our They said we must take temporary more transparency so that the tax- help to come to this immediate rescue. emergency action to get us through payers, communities, small businesses, Beyond that, we need to take a broad this financial crisis—the biggest finan- farmers, and our financial system are view of the needed changes in our regu- cial crisis we have faced in a long time. never put in this position again. This latory system. There are mistakes and As at least one commentator said, we doesn’t mean we are giving a blank omissions. There is lots of blame to go are facing a financial ‘‘stone age.’’ check to the Treasury; this means just around. There are lots of areas where This crisis is real. This is a rare mo- not bailing out those who made bad de- Congress acted or did not act, the ad- ment. This is an emergency. The credit cisions with no consequences. This is ministration acted or did not act, and markets have been struggling mightily one of the points I got 5,000 calls about the agencies did not do the proper for the past several weeks due to the last week. Almost 4,999 of them ob- work. subprime housing crisis and falling jected specifically to golden parachutes As a 22-year housing authorizer and home values. Despite unprecedented and to excessive compensation for top appropriator, I have some strong views intervention by the Federal Reserve corporate executives. Well, the com- as to what needs to be done, and I have and the Treasury, the credit market promise that the negotiators worked offered those on the floor, citing a let- got worse. I commend those institu- out dealt with those. This also means ter I sent to the Secretary of the tions for doing what they did, but that and the negotiators came up with a Treasury, the Chairman of the Federal is not enough. They don’t have enough system to ensure strong balances so Reserve, the SEC, and the leadership of tools in their toolbox. Clearly, it is that taxpayer funds are protected the banking committees in both time for a comprehensive and system- while achieving the goal of preventing Houses. I would only amend that today atic approach in order to restore sta- a financial meltdown. This bill incor- to say we need, either in this bill or— bility to the credit markets to make porates those measures. probably in this bill—we need to raise sure that all of us, and the entire This bill increases accountability by the limit of the Federal Deposit Insur- wheels of the Nation, can have the giving the Treasury Secretary specific ance Corporation insurance so that in- credit we need to move. powers to reduce executive compensa- dividuals, farmers, small businesses It is much more than about Wall tion and cut golden parachutes. This that may in the course of their busi- Street; it is about average American bill increases taxpayers’ protections by ness operation have more than $100,000 families, individuals, small businesses, giving taxpayers an ownership interest do not pull it out of the banks, thus en- and farmers. Average American fami- in the firms they are helping to bail dangering the capitalization of the lies are outraged at what is happening out.

VerDate Aug 31 2005 03:09 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00017 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.033 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10132 CONGRESSIONAL RECORD — SENATE September 30, 2008 In addition, we expect the Treasury businesses that have to meet their pay- the House. Their work is not in vain. I to do the analysis and to work within roll, liquidity problems which would expect we will finish the job—I hope the market system to buy mortgages face farmers who try to get operating this week. We have to do it. There is and other debts that are now at fire- loans, liquidity problems that would too much at stake not to do the job and sale prices below the prices those mort- face the average family if they want to do it well. gages or other debt would sell for when get a loan to buy a house or a car. They TRIBUTE TO SENATORS the credit markets begin to function can’t get it. JOHN WARNER once again. That is the first level of This measure we are talking about is Mr. President, today I join my col- protection. The first level of protection protecting savings, retirement ac- leagues in saying goodbye, thank you, is to make sure Treasury has the power counts, and investments of Missouri and best wishes to good friends leaving to put liquidity back into the system families and American families. It is the Senate, especially a couple of Sen- by buying this now fire-sale property about making sure no Missouri worker ators with long and distinguished serv- at a reasonable price, but one at which misses a paycheck. To me, it is about ice. One of those, who has been a hero the Treasury can later recover, and at Missouri businesses, small and large, of mine for a long time and has become the same time taking this bad debt off not going under. To me, this is about a good friend, is JOHN WARNER. He is a the books of the companies. They will helping struggling homeowners in de- Member in the Senate well known for be crippled by selling it below what fault so they can get their mortgages his patriotism, for his long service to they bought it for, but they will have reworked. To me, this is about Missou- both his State and his Nation, and per- liquidity again. rians getting car loans, home loans, haps more than any other Member of The bill provides stronger oversight and student loans. In summary, I be- the Senate, he is known for being a by creating a special inspector general. lieve it is what is best for my Missouri gentleman in the true meaning of the It will empower our U.S. Government constituents. word. I would say he is a Senator to Accountability Office to conduct ongo- It is imperative that we continue to whom we can all look up. I did when I ing audits and reviews of the program. work on this bill and consider other arrived, and from the beginning I It creates a new oversight panel of ex- ideas to improve it. As I mentioned learned a great deal. ecutive officials such as the Federal earlier, now both Presidential can- Now, as a fellow UVA Law grad, my Reserve Chairman, and it sets up a spe- didates back a proposal to increase the good friend, the squire from Virginia, cial congressional oversight panel. This current Federal deposit insurance JOHN WARNER, who is retiring after 30 bill provides more transparency by re- guarantee level from $100,000 to years of service, has left an indelible quiring the Treasury to disclose pub- $250,000. That is a very good idea. I urge mark on this body. We will miss as much, though, the presence of his won- licly all transactions made under the my colleagues to consider this pro- derful wife Jeanne. I think all of us in bill. posal. Frankly, I think, at least for the These are very positive improve- time being, we ought to up that limit, the Senate, at Senate gatherings, at ments in the bill. but we need to do it soon, and we need Senate family affairs, know how much Let me be clear. I would not vote in to do it responsibly so there will not be Jeanne adds to our family. She is truly support of any bill simply to bail out a silent, backdoor run on banks and a wonderful lady. She has cleaned up irresponsible, incompetent, and greedy small businesses that have needs for the squire a good bit. My wife Linda bankers—whether they are Wall Street large amounts of operating cash don’t and I always enjoy and look forward to or elsewhere—or investors. I will vote take all their money out of the small seeing Jeanne and JOHN after their in support of a bill that protects the banks they work with and leave those service in the Senate because they are average Missourian, the average Amer- banks in a perilous condition. good friends. Not only do JOHN and I share the ican family, the individuals, the com- We need to pull together and do what UVA Law connections, but he and I munities, the small businesses, and the each of us individually can do to ad- were on a panel at his school, St. Al- farmers. This is about doing what is dress the crisis. This also means trou- bans, along with several other distin- right, not necessarily popular—and bled homeowners must seek assistance guished Members of the Senate, and we popular this is not. in avoiding foreclosure. Help is avail- had the opportunity to go back to the Without a bill of these elements, the able through home ownership coun- school that he had attended and my Federal Government will continue to seling. It is available due to funding I son attended. use existing authorities with taxpayer was proud to work on with my col- Let me go back to what JOHN WAR- funds to rescue financial institutions. league, Senator DODD, to provide last NER has done in his impressive 32 years That is why we need a bill that pro- year. We provided $180 million. Based in the Senate. His service to the coun- vides taxpayer protection, account- on the preliminary data we saw from try began long before he was elected to ability, transparency, and oversight, in one organization counseling home- this body in 1978. At age 17, JOHN chose a systematic, controlled manner. In owners, 69 percent of those who re- not to go back to St. Albans imme- other words, with or without this bill, ceived that counseling were able to diately but first chose to serve his taxpayers will be on the hook. They avoid foreclosure. That counseling is country, enlisting in the U.S. Navy to will be asked to chip in. The problem is available now. The program is working. help keep our Nation safe from Nazi now, when we have tried—or as the But we need troubled homeowners to Germany. Treasury and the FDIC have done and contact their counseling agency before He, again, answered his Nation’s call the Federal Reserve has done—to res- they get into foreclosure. Contact to service at the outbreak of the Ko- cue firm by firm, we are putting more them if you are having problems. Call rean war, when he served in the U.S. money at risk, but we are not solving the HOPE hotline: 888–995–HOPE. Marine Corps. the basic credit problem. The credit Again: 888–995–HOPE. A lot of the prob- Since his service in our Armed illiquidity is still there. lem can be solved for homeowners if Forces, JOHN has been a tireless advo- Last week, I talked with a friend who they get counseling. cate for our military and for our vet- deals in municipal bonds. Those are the Before closing, let me express my ap- erans. For the soldier returning home bonds State and local governments preciation to the House and Senate after service, JOHN has worked to im- offer. They are the ones that finance leadership and lead negotiators and prove the care our veterans receive, the the ongoing operations of States and of their staff for the hard work and long care a grateful nation owes each and cities, of counties, of revenue districts, hours they have put in over the past every one of our brave volunteers. of special districts. She told me the week to pass the greatly improved pro- As chairman of the Armed Services market was totally frozen. They can’t posal, originally coming from the Committee, as vice chairman, as a go to the market. Treasury. I thank especially Senators ranking member, as a leader in the Continuing to just let the system go DODD and GREGG for representing and Armed Services Committee, JOHN has downhill and provide rescues for indi- leading the Senate in the negotiations. worked to ensure that the military, vidual banks that may get into prob- I am proud of my good friend and Mis- particularly our troops on the field in lems is not going to solve the liquidity souri constituent ROY BLUNT for his battle, have the equipment and the re- problem—liquidity problems faced by work, along with Chairman FRANK in sources they need.

VerDate Aug 31 2005 03:09 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00018 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.037 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10133 Under JOHN’s watch, the Senate al- The PRESIDING OFFICER. Without know that time is not the ally of mil- ways passed a Defense authorization objection, it is so ordered. lions of Americans facing a serious bill, a feat that is not only achievable THE ECONOMY threat to their way of life. The major- because of JOHN’s skill but because of Mr. MCCONNELL. Mr. President, yes- ity leader understands this, and he and the respect he has for Members on both terday’s House vote has come and gone, I are working together to find a way to sides of the aisle. but the threat to our economy has not. get to yes. JOHN used this legislation year after Congress must still act swiftly and de- Working together is the only way to year to modernize our military to cisively to protect millions of ordinary get this rescue plan passed, and that is make sure they meet 21st century Americans from a credit crisis that exactly what we intend to do. needs. In this way and all others, JOHN they had no hand whatsoever in caus- I yield the floor. I suggest the ab- embodies the motto of his esteemed un- ing but which obviously threatens to sence of a quorum. dergraduate Virginia school, Wash- reach into every single household in The PRESIDING OFFICER. The ington and Lee, which is ‘‘Not Unmind- our country. clerk will call the roll. ful of the Future.’’ Retirees are worried about their sav- The assistant legislative clerk pro- JOHN has always kept that responsi- ings. Small business owners are pan- ceeded to call the roll. bility to the future in mind as he has icked because the banks will not lend. Mr. BENNETT. Mr. President, I ask worked to keep our fighting forces the Homeowners are watching the equity unanimous consent that the order for best in the world. they have in their houses dry up. the quorum call be rescinded. But he has also done much in other I am hearing from towns and munici- The PRESIDING OFFICER. Without areas. It has been my pleasure to work palities throughout Kentucky that objection, it is so ordered. with him on the Environment and Pub- cannot find the money to finance new Mr. BENNETT. Mr. President, I ap- lic Works Committee. He was an in- schools and other civic projects and preciate the statement of the Repub- valuable leader, from whom I learned from farmers and small business own- lican leader with respect to our deter- much. He was a great friend in passing ers who are suddenly being told by mination to get this done. I think all of the highway bill in 1998. I followed his their banks that a long-term loan is us should recognize that these are ex- work later on while working on the due. Others are being pressured to pay traordinary times, and I want to sound current highway bill. I owe a great deal more or well ahead of schedule. These a warning to those who have the opin- to the skill, to the advice, and the lead- are people with good credit. ion that yesterday’s drop in the stock ership he provided in making sure we I am hearing from people such as the market was simply a one-time correc- could meet the needs of our highways retired school counselor in Anderson tion; that the stock market is coming and our bridges. His guidance and lead- County who said she cannot afford to back today, and that the markets are ership were extremely vital for the suc- see her small retirement savings van- going to absorb the shock of the lack of cess of the bill I worked on. He has also ish. ‘‘I have never written to any Sen- action on the part of the House of Rep- kept his responsibility of the future in ator or Congressman before now,’’ she resentatives. mind during his tenure on the Senate wrote. ‘‘This is so important to our I would point out that markets are Intelligence Committee. Government and its citizens.’’ driven by future expectations, and It has been an honor, a pleasure, and One small business owner wrote me when the stock market assumed, on a treat to fight side by side with JOHN about a company he started in his ga- the basis of the vote in the House, that on the Intelligence Committee. He has rage that now employs 100 people. He we would not have any kind of Federal always been looking to the future, to said that because of the credit crisis, action on the financial rescue package, all our futures. He worked on the com- the interest rate he is paying on his it dropped more dramatically than at mittee to help us prevent another dev- building jumped 400 percent. Speaking any other time in its history in total astating attack on our soil such as 9/11. on behalf of all small business owners number of points, and it dropped per- JOHN was an invaluable ally on the in his community, he had a simple centage-wise for the worst drop since committee in our efforts to reform and message: ‘‘Kentuckians need help 9/11. oversee our intelligence operations. now.’’ Now, as there has been an expecta- Probably the most important to me, Here is what a woman from central tion that the Congress will move, the with JOHN’s help, we passed probably Kentucky wrote to me about the finan- stock market is back up today but no- the most important legislation I have cial rescue plan the House of Rep- where near back up to the point it was had the opportunity to lead—the For- resentatives rejected yesterday. She before the drop occurred yesterday. If eign Intelligence Surveillance Act—to said: we break the expectation once again, assure we had an early warning system I hope you will not lose sight of the vast this time the market will drop and against terrorist attacks. numbers of innocent Americans who work there will be no coming back up. This Because of JOHN’s work in the Sen- tirelessly to create a better future for our ate, his heart on the battlefield, our children and fellow Americans, who could be time, your 401(k), your pension plan, Nation is not only a safer place but, financially wrecked by plummeting U.S. and your retirement account will be hurt in under his guidance, wisdom, and lead- overseas markets. a way that will take years to recover. ership, it has become a much better If the rescue plan fails, this woman Let’s talk about numbers to dem- place. added, she is afraid she will have to sell onstrate the importance of this. One of It has been a tremendous honor and off part of her family’s farmland. the things we have heard with respect privilege to serve with JOHN WARNER. The credit crisis is spreading. It has to the financial rescue plan is that $700 He is an icon of the Senate. He will be gotten too big to ignore, and it is too billion is far too big an amount for the missed for his ability to work across big for one party to solve on its own. taxpayers to absorb. Yesterday, over 1 the aisle, for putting his country first, Congressional leaders are assessing the trillion dollars’ worth of market value and for the friendship, personally, the legislative path forward, but one thing was wiped off the books by the stock friendship with Jeanne, his wife, and is clear: Any solution will be a bipar- market drop. We must understand that the rest of us. I join my colleagues in tisan solution. Both sides have to work it is ordinary people looking at ordi- congratulating the Senator and his together, and we will stay until the an- nary pensions with their ordinary Main wife and thanking JOHN for his many swer is yes. Street kind of 401(k) plans who lost years of service. There was a lot of frustration around that trillion dollars, and they lost it in I yield the floor and suggest the ab- here yesterday which led to a lot of ac- a matter of minutes. The market sence of a quorum. cusations and blame. Today we must plunged over 700 points in a matter of The PRESIDING OFFICER. The move forward together. The voters sent minutes, and 1 trillion dollars’ worth of clerk will call the roll. us to respond to crises, not to ignore ordinary American value was wiped The assistant legislative clerk pro- them, and if you fail the first time, you out. ceeded to call the roll. get back up and work with each other This is not a trivial event, and we Mr. MCCONNELL. Mr. President, I and you figure a way to get it done. should pay attention to it. As I say, the ask unanimous consent that the order We know what we need to do and we stock market now believes we are for the quorum call be rescinded. know we need to do it quickly and we going to get serious about this and get

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We should not congratulate we are putting forward our pet theories portant part of the problem is the ourselves on the 250-point rally that it as to how that should be done, with ex- sense of confidence that we are serious has somehow removed the sting of the perts on talk shows and from think about getting it done. 777-point drop that occurred yesterday. tanks pontificating on cable television, If we say, well, we are going to give We keep hearing, well, the markets payrolls may not be met in towns in the Secretary of the Treasury $100 bil- will adjust and everything will be all my State. lion and see how it works, that sends a right and the stock market will be OK. This is a crisis that has to be dealt message we are not confident that this But let’s move away from the stock with now. We can deal with the re- will do any good. If we are going to market to where the real problem lies, structuring of the financial regulatory say, well, we want a board to examine which is in the credit markets. We system at our leisure, but we must not every aspect of this proposal. We are don’t have a single barometer for the take our eye off the seriousness of the not going to give the Secretary author- credit markets the way we do with crisis, both in terms of its size and in ity to move ahead decisively. That Dow Jones following the stock market, terms of its pressure. This morning’s sends the message we are not confident but we have indications all along the financial journals make it clear that this will work. way that the credit markets through- throughout many countries in the The bill the House voted down which out the world have seized up; that is, world they and their central banks said the Secretary can say to the mar- banks are not loaning to banks, banks have not yet addressed the seriousness ket that potentially we have $700 bil- are not making credit available to of the crisis, and we will see problems lion that can be applied to this prob- those who have been their best cus- overseas begin to wash up on our lem, and he has full authority to com- tomers as they wait to see how this shores to make our problem that much mit it, subject to review of the over- works out. That is the place where worse if we don’t act. sight board and the ultimate review of those people who are saying this ap- There are those who say, well, we Congress, that is a statement of con- plies only to Wall Street are going to shouldn’t give this much power to the fidence that the markets can believe. Now, let me talk just briefly about end up paying a huge price. Secretary of the Treasury. I don’t like I have used this example before, but the idea of one man having this much where the $700 billion number comes I am finding it is being duplicated in authority. The proposal that has been from. It is not pulled from out of the other States. Amidst the avalanche of put together creates an oversight board air. It is not a number that somebody phone calls into my office from angry with real power. It creates a board that thought up as sounding pretty big. The Utahns demanding that we vote could rein in a Secretary of the Treas- total amount of mortgages in the against this because they say this is a ury who abused his power or who got United States is approximately $14 tril- lion, and the percentage of those mort- bailout of Wall Street, there are one or out too far in front. It is my under- gages that are bad and probably cannot two other phone calls that get through. standing that we have built-in congres- pay out is about 5 percent. Five per- One of them came from an auto dealer. sional review in the bill that the House cent of $14 trillion is $700 billion. But In the city or town where he operates, defeated—congressional review, con- the assets that the $700 billion will ac- he is the city’s largest employer. gressional oversight—that could have quire will not be all of the bad mort- He called and said: Senator, I know said to a Secretary of Treasury: You gages. The assets they will acquire will you are getting a lot of calls on the are too far extended, and we are going be a mixture of bad mortgages and other side of this issue. Let me just to hold back on the authority we have good mortgages. Why? Because nobody point out one thing with respect to my given you. knows which are the bad mortgages business. I am the biggest employer in But we have a crisis that needs to be and which are the good mortgages. The this town, and I may not be able to dealt with and needs to be dealt with only way we are going to find out is make payroll on Wednesday. The big- now. We shouldn’t be arguing over hold the mortgage to maturity and see gest employer in town, and none of my whether the city council should sec- which ones get paid and which ones employees will get checks because the ond-guess the police chief as he rushes don’t. They are all packaged together. bank won’t give me the line of credit to deal with a crisis, a police chief in So the Secretary, by putting 5 per- that the bank has been making avail- whom the city council had confidence cent of the total amount of mortgages able to me for decades. when they chose him in the first place. available to acquire those that are That is the implication of the seizing This Secretary of the Treasury is well questionable is sending a message of up of the credit markets. That has known as one of the more expert great confidence to the market by ac- nothing to do with the stock value of money managers in the country. He quiring those mortgages and creating a this particular car dealer. That has to has been completely open in all of his circumstance whereby once the good do with the paychecks that go into the discussions with members of the lead- ones pay out, the taxpayers will re- pockets of the people who fix the cars, ership of both parties, and members of ceive money back. who wash the cars, and who try to sell the leadership of both parties have ex- Indeed, there are some who say the the cars. They are the ones who will pressed confidence in his ability to do U.S. Government will make money. I pay the price of the inaction in the this. They have created the oversight don’t happen to believe that it will, but Congress. board that is in the bill that will pull I can’t prove that it will not, and there There are those who say, well, we him back if he does it improperly. is certainly an indication in past his- should restructure the regulatory sys- The entire $700 billion will not be tory that it will. tem so this doesn’t happen again. We committed immediately—cannot be If we go through the past cir- shouldn’t act in such a precipitous committed immediately. It must be cumstances, where the Federal Govern- fashion until we get all of these other handled in an orderly fashion. We un- ment has intervened in circumstances issues on the table and discussed. Let’s derstand from the Secretary that the of need, starting with the Chrysler not act quickly. pattern of its disbursement will run at loans, the Federal Government made I am perfectly willing to agree that the level of about $50 billion a month. money on the Chrysler loans. the regulatory structure we have basi- So we are not talking about giving $700 Chrysler righted itself by virtue of cally going back to the 1930s is inad- billion overnight in a single check to a having access to that money, paid in- equate for the kind of world in which single man for him to go out and terest on the loans, and the taxpayer we now live. And I am perfectly willing waste. Those on the talk shows who received a financial benefit for the to agree the restructuring should be a make that comment simply dem- Government having entered into the serious one and a deep one. If you do a onstrate they do not understand what Chrysler loan program. serious and deep restructuring of the is in the bill. If I had been in Congress at the time, way we handle credit markets in this But the fact that the Secretary of I probably would have voted against it country and confer with our counter- the Treasury can say to the credit mar- for other reasons, but for financial rea- parts in other countries around the kets that are frozen: I have potentially sons, it was a good deal. If you look at

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The stock hurt the job creation machine of our They forced the sale of Bear Stearns market took over $1 trillion worth of great economy, which is small busi- and then they opened the Fed window value out of the American economy in ness. so Bear Stearns could borrow money. a matter of minutes on Monday after- Last week, I discussed the impact of What happens when you borrow noon. We must do everything we can to Senator MCCAIN’s and OBAMA’s tax money? You pay interest. By making make sure that does not turn into $2 plans on seniors. Earlier this week, I sure Bear Stearns did not go down, the trillion, $3 trillion or $4 trillion wiped discussed the fiscal effects of Senator Federal Reserve guaranteed that Bear away because the Congress was not MCCAIN and Senator OBAMA’s plans. Stearns will be able to pay the interest willing to stand up to its responsibil- Today, I focus on how both tax plans on the money that is made available to ities. would affect the middle class. The them. Who gets that interest when it is I have faith that ultimately we will. press and the candidates have focused a paid? The American taxpayer. I have faith that the Members of the lot of attention on the middle class. In It will be paid into the Federal Re- House and the Members of the Senate fact, I remember a speech of Senator serve account. When the Federal Re- will ultimately recognize their respon- OBAMA’s alluding to something about serve makes money, their surplus gets sibility and do the right thing. he never heard Senator MCCAIN in the paid to the American taxpayer. The I go back to a quote by Winston debate last week say anything about American taxpayer will receive a ben- Churchill, who commented on Ameri- the middle class. efit, a financial benefit, from the deal cans, generally. He said: Well, Senator MCCAIN is not com- that was made by the Federal Reserve The Americans can always be depended fortable in the class war-type rhetoric and Bear Stearns. The same will be upon to do the right thing after they have that some people are comfortable true with AIG, the insurance giant. exhausted every other possibility. using, and he talks about the middle They will be paying interest on the Monday we exhausted our every class a lot when he talks about small money that has been made available to other possibility. It is time to do the business and working men and women. them on a loan basis, and the taxpayer right thing. We in this body, as well as So we have heard a lot about the mid- will receive that interest. those in the other body, need to rise to So for those who are out there adding dle class. So I wish to concentrate on the occasion. up the face value of every deal we have that. I yield the floor. My discussion today will focus on tax made and then adding it to the $700 bil- The PRESIDING OFFICER. The Sen- lion and then telling us all that it is policy. But to get a handle on what is ator from Iowa. and is not middle-class relief, we need gone and there will never be any of it Mr. GRASSLEY. I ask unanimous coming back to the Treasury, they are to see if we can define the term ‘‘mid- consent to speak as in morning busi- dle class.’’ Today I think we need to wrong. They are misleading the Amer- ness. ican people with that kind of talk. get answers to several questions as we The PRESIDING OFFICER. Without try to get to the bottom line of where Frankly, it is those commentators who objection, it is so ordered. are adding up those numbers irrespon- Senators MCCAIN and OBAMA are on TAXES sibly, who are driving the angry phone middle-class tax relief. Mr. GRASSLEY. Mr. President, be- calls that are coming into my office The first question would be: What is ginning in the third week of July, I and the office of everyone else here. the definition of ‘‘middle class’’? To Now, I understand their anger. I am have come to the floor quite often to get at this question, we need to see sympathetic with their anger. I am as compare the tax plans of Senator what the two candidates say about who disappointed as anybody that we al- MCCAIN and Senator OBAMA, our two is in the middle class and how their lowed this situation to get to where it Presidential candidates. I have talked plan defines the middle class. is. But I say to those who are angry: about the relationship between party The second question would be: Where Let’s leave it up to the historians to control and the likelihood of tax hikes are Senators MCCAIN and OBAMA on the sort out where the blame should go. or tax cuts. I have used the infamous current law of middle-class tax relief Let’s put out the fire right now. Let’s thermometer chart to demonstrate. I that is set to expire. I am referring to not spend our time as the fire is burn- am not going to go through all of it the family tax relief provisions that ing running around trying to find out again because I have talked about it expire at the beginning of 2011 and the who the arsonist may have been, while several times on the floor of the Sen- alternative minimum tax fix. the fire destroys the building. Let’s ate. To get to that question, we need to free up the credit markets right now. But up on the top, you can see that look at where each candidate’s record Let’s send a signal of confidence to the when a Democratic President controls has been on bipartisan tax relief. We world markets right now. We should the White House and the Congress at also need to look at what they plan to have done it on Monday in the House of the same time, you had the biggest tax do with these expiring tax relief provi- Representatives. We did not. increase. And then, if you come down sions, which means when the tax laws Negotiations are now going on be- through there, you find in various of 2001 and 2003 sunset December 31, tween the leaders of both Houses and phases you have more or less tax de- 2010. the leaders of both parties to try to creases or tax increases, and you have The third broad question is: Where find some new program that might the most tax decreases when you have would Senator MCCAIN and Senator pass. Once we do, we will get another a Republican President and a Repub- OBAMA further reduce or hike taxes on vote. The Republican leader has made lican Congress. middle-class families? To get an an- that very clear. The majority leader Now, that is over the last 28 years, swer to this question we will take a has made that clear. We are not leav- approximately. In another speech I look at each of the candidate’s new ing town until we get another vote. talked about the 1992 campaign prom- proposals for middle-class tax cuts. That is why the stock market is as ise of the middle-class tax cut. I con- If you turn to factcheck.org, you will encouraging as it is. But we must un- trasted the promised tax cut with the find the definition is not simple about derstand, if we do not act, the lack of 1993 tax legislation that contained a what is a middle class. According to confidence will produce a worldwide world record price increase. I have used factcheck.org, there is no clear defini- wave of credit seizing up, and it will be this chart that is going up there now to tion of middle class. Here is what they the small businesses, it will be the depict what it would look like with 16 say there: 401(k) plans, it will be the pension pro- years of tax hike amnesia and Rip Van Middle class means different things to dif- grams for teachers and nurses and oth- Winkle. ferent people and politicians. There is no ers who are depending upon those plans In our first week back after the Au- standard definition, and, in fact, an over- for their retirement that will pay the gust recess, I returned to these topics whelming majority of Americans say they price. and I discussed the effects of the pro- are middle class or upper middle class or

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working class in public opinion polls. Hardly OBAMA DEFINES ‘‘MIDDLE CLASS’’ And if you’re making $150,000 or less, then anyone considers themselves lower class or (By Major Garrett) I think most Americans would agree that upper class in America. you’re middle class. So that’s why the fact WASHINGTON.—I wanted to throw out for that if you are making less than $250,000, you I ask unanimous consent to have this consideration and debate a question I’ve will not see your taxes go up under an material printed in the RECORD at the found myself asking Democrats, Repub- Obama administration. And you will get tax conclusion of my remarks. licans, Independents and economists for cuts and more money in your pocket if you The PRESIDING OFFICER. Without years: who is in the middle class? In the 1990s, the answers I received were al- make less $150,000. objection, it is so ordered. I think that’s the right way to promote the most entirely linked to income figures—the (See exhibit 1.) kind of bottom-up economic growth that’s income of a family of four, or three or of a Mr. GRASSLEY. I have a chart that going to make a difference in people’s lives. single person in his or her twenties, or an el- breaks down the answers to a Pugh Re- Here is how the government tabulates two derly person on a fixed income determined search Center poll. Among other ques- different types of mid-point incomes in how close or how far they were from ‘‘middle America. The Census Bureau calculates me- tions, the poll asks whether folks class’’ status. dian income (the precise mid-point between thought of themselves as upper class, About the time of millennium, I began to all tabulated incomes) and the mean income upper middle class, middle class, lower notice that the answer to who was ‘‘middle (the average of all the tabulated incomes) of middle class, and lower class. In other class’’ began to change from relatively pre- families and individuals. The figures below words, basically dividing the country cise figures to very broad income strata. It are for families and individuals for 2006. was as if politicians—particularly at the na- into different quintiles. Income of family households in U.S. in 2006 tional level—began to believe that incomes According to the poll, 53 percent of (most recent year available)Median: $59,894 varied as widely as the core cost of living. Americans considered themselves mid- Mean: $77,315 Therefore, an income designation, for exam- dle class, 19 percent consider them- (Source: Census Bureau: Income, Poverty, ple, linked to the U.S. Census Bureau defini- selves upper middle class, and 19 per- and Health Insurance Coverage in the United tion of median or mean income for an indi- States: 2006, http://www.census.gov/prod/ cent consider themselves lower middle vidual or family, would no longer work as a 2007pubs/p60–233.pdf and Current Population class. So you have this outstandingly means of defining with precision who was or Survey: Annual Social and Economic (ASEC) high percentage of 92 percent of Ameri- was not middle class. Supplement, http://pubdb3.census.gov/macro/ cans who consider themselves some- In other words, individuals or families in 032007/faminc/new07l000.htm) New York, Los Angeles, Chicago, San Fran- thing other than upper class or lower Income of all households in U.S. in 2006 cisco, Boston or other high-cost urban areas class. (most recent year available)Median: $48,201 could earn three times the median or mean Since we are examining Senator Mean: $66,570 family income and still feel strapped by MCCAIN’s and Senator OBAMA’s tax (Source: Census Bureau: Income, Poverty, month-to-month costs. plans, it is fair to ask about their defi- and Health Insurance Coverage in the United In other words, middle class status seemed States: 2006, http://www.census.gov/prod/ nition of middle class. over time to be less rooted in specific income 2007pubs/p60–233.pdf and Current Population On August 16 of this year, Senator figures, but regional differences in income Survey: Annual Social and Economic (ASEC) MCCAIN appeared on Pastor Rick War- and cost-of-living. It also seemed to reflect a Supplement, http://pubdb3.census.gov/macro/ ren’s forum at Saddleback Church in sense among politicians and some econo- 032007/hhinc/new06l000.htm) Albuquerque, NM. Pastor Warren asked mists that ‘‘middle class’’ is not just a mat- So, the question I set before those of you ter of figures, but also a state of mind. Senator MCCAIN to draw a line, in tax who wish to discuss and debate are these: At my suggestion, my colleague Bill relief dollar terms, between the middle what is the middle class; are you in the mid- Hemmer was kind of enough to ask Sen. class and the rich. Senator MCCAIN’s dle class; have you always been there and do Barack Obama in London how he defined the answer reflects the ambiguity of the you ever imagine you live better than ‘‘mid- middle class. dle class’’; and to what extent does your con- factcheck.org definition. I quote Sen- Here is the transcript of that exchange: ception of ‘‘middle class’’ affect your view on ator MCCAIN: HEMMER: You mentioned the economy. how high taxes should be which income cat- I think the rich should be defined by a You travel back to the U.S. this weekend. egory. home, a good job, an education and the abil- You’re going back to a country with a limp- Let the discussion and debate begin. ity to hand our children a more prosperous ing economy, ‘‘ailing,’’ I think, is one of the and safer world than the one we inherited. words The Economist used at the end of last Mr. GRASSLEY. Senator MCCAIN So if you’re just talking about income— week. doesn’t adopt a sharp line definition of Then on television there was kind of You have suggested that taxes will be middle class. Senator OBAMA defines a laugh and smile at that point— raised on some Americans. You have also middle class as everyone below $150,000. how about $5 million? No, but seriously, I suggested that taxes will be lowered for some Senator OBAMA defines as a neutral don’t think you can. I don’t think seriously Americans. In a limping or an ailing econ- area those earning between $150,000 and omy, why raise taxes on anyone? that the point is I’m trying to make, seri- $250,000. Senator OBAMA defines fami- ously, and I’m sure that comment will be OBAMA: Well, the—because we also have a $400 billion or so budget deficit, because lies earning above $250,000 as upper distorted but the point is . . . that we want class. to keep people’s taxes low, and increase reve- we’ve also got to invest in infrastructure. nues. . . . So it doesn’t really matter what We’ve got to deal with the fact that a lot Now that we have the stated defini- my definition of rich is because I don’t want more people are unemployed and are going to tions of middle class, let’s take a look to raise anyone’s taxes. I really don’t. need unemployment benefits. We’ve got to at where Senators MCCAIN and OBAMA shore up the housing market because people How does Senator OBAMA define the would change the current family tax are experiencing foreclosures. rate. If you take a look at Senator middle class? In an interview with Fox And that’s why I’ve structured a change in News of Bill Hemmer, Senator OBAMA the tax code where if you are making $150,000 MCCAIN’s plan, you can get a handle of answered the question this way: a year or less, you’re getting a tax cut, 95 where he wants to cut middle-class You know, what I would say is, if you are percent of the American families will get a taxes. In effect, you can get an idea of making more than $250,000, then you’re more tax cut. where Senator MCCAIN believes further than middle class. You’re doing better. If HEMMER: What do you consider . . . middle-class tax relief ought to go. you are making less than $250,000, then you OBAMA: And the people who are going to Senator MCCAIN would lower current are definitely somewhere in the middle class. see their income taxes raised, go up, are law levels of taxation in two widely ap- And if you’re making $150,000 or less, then I making more than $250,000 a year. So you plicable proposals. The first would dou- and I will pay a little bit more in taxes be- would think most Americans would agree ble the dependent personal exemption you’re middle class. So that’s why the fact cause we can afford it. And what that allows that you are making less than $250,000, you us to do is to help the vast majority of for a family of four. This relief would will not see your taxes go up under an Americans who are really hurting in this apply to taxpayers with incomes up to Obama administration. And you will see tax economy. $120,000. This new tax relief would be cuts with more money in your pocket, if you HEMMER: I know we’re pushed for time. phased out for those families between are making less than $150,000. Can you give me a definition of the middle $50,000 and $120,000. I have a chart that I ask unanimous consent to have class based on income, within a range? shows which groups of families would OBAMA: You know, what I would say is, if be affected by Senator MCCAIN’s tax printed in the RECORD the Bill Hemmer you are making more than $250,000, then interview. you’re more than middle class. You’re doing proposal. It is called the regular tax, There being no objection, the mate- better. If you are making less than $250,000, between $32,000 and $132,000, by increas- rial was ordered to be printed in the then you are definitely somewhere in the ing the dependent personal exemption RECORD, as follows: middle class. from $3,500 to $7,000.

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If GRESSIONAL RECORD and examine the class in contrasting his tax relief plan these tax cuts are extended, then in debate. If you do, you will see nearly with that of Senator MCCAIN. Here is 2011 a married couple making $50,000 all the Democrats and most Repub- what Senator OBAMA’s campaign said: with two children would save an aver- licans in both bodies describe the over- According to the Tax Policy Center, the age of $2,300 on their tax bill. It is clear reach of the alternative minimum tax Obama plan provides three times as much enough. I don’t have to dwell on what as a middle-class family tax problem. If tax relief for middle-class families as the the chart says. If we don’t do anything the AMT patch is almost universally McCain plan. for this class of taxpayers, the tax bill defined as middle-class tax relief, then Behind that claim is a comparison of is going to go up $2,300 per year. a fair question is: Who benefits from the Tax Policy Center analysis of Sen- Likewise, you can take any class of this fix? ators MCCAIN’s and OBAMA’s plans, pro- people, but let’s look at a single mom I have a chart that shows this. The posals on families in the middle-in- with two kids who makes $30,000 a chart refers to a Joint Committee on come quintile. The middle-income year. She would save an average of Taxation analysis of the last fix that quintile refers to the middle 20 percent $1,100 off of her tax bill in 2011, if the became law, meaning the 2007 alter- of all families in America. According 2001 and 2003 tax cuts are extended—the native minimum tax fix. You can see to the Tax Policy Center, that band of same wall only with different figures. how it affected people in different cat- income runs between $37,596 and $66,354. The 2001 and 2003 bipartisan tax relief egories. You will see from the chart I have a chart that depicts the band of bills provide much needed tax relief, al- that the AMT patch benefited families income that would represent that mid- most all of which is scheduled to expire between $40,000 and $50,000 on the low dle income. We would point here to by the end of 2010. This bipartisan tax end. And as we travel across the chart, relief doubled the child tax credit, al- Senator OBAMA’s tax relief down there, you will see the biggest category of lowed this child tax credit to be used the light blue, between $37,000 and the families benefiting to be in the $75,000 against any AMT liability, and made a $66,000 figures. As we can see, this is a to $100,000 category and the $100,000 to large portion of this child tax credit re- much smaller group, 20 percent of the $200,000 category. Roughly half the fundable. This bipartisan tax relief also population topping out a bit above families benefiting, over 9 million, permanently extended the adoption tax $66,000 a year income. That is far below earned between $100,000 and $200,00. On credit and increased the credit to the $150,000 and $250,000 figures Senator the higher end, we find about half a $10,000 per child. This bipartisan tax re- OBAMA mentioned in the Fox News million families earning between lief also increased the dependent care interview I placed in the RECORD. $200,000 and $500,000 also benefited from credit to a maximum of $6,000. In addi- On the AMT patch, Senator OBAMA making sure that the alternative min- tion, it also provided tax relief from supports his words ‘‘fiscally respon- imum tax doesn’t hit middle-income the marriage penalty. This bipartisan sible’’ AMT reform, whatever that people, a group of people who could be tax relief also provided a number of tax vague concept means. Unlike Senator hit if Congress didn’t fix it from year relief provisions to help make edu- MCCAIN, Senator OBAMA conditions ex- to year so that they didn’t get hit. This cation more affordable. tension of the AMT patch on his notion year that number is 23 million people For example, one provision gave a de- of ‘‘fiscal responsibility.’’ The Tax Pol- who would get hit if the Senate hadn’t duction up to $4,000 for college tuition icy Center assumes that this means passed the bill we did last week. and related expenses. In addition, an- The AMT patch relief conforms to that Senator OBAMA would extend the other provision increased the annual polling data on how Americans define AMT patch and index it for inflation. limit on contributions to education themselves. The AMT patch problem However, this is just one think tank’s IRAs from $500 a year to $2,000 a year. that the patch remedies spreads across interpretation of Senator OBAMA’s I believe it is useful to look at where a broad swath of American taxpayers, statement that he supports fiscally re- the candidates have been with respect as we saw from the chart. sponsible AMT reform. But for the sake to their positions on middle-class tax Senator MCCAIN’s second major tax of comparison, at least until 2013, the relief. Senator MCCAIN has consistently relief proposal would build upon the al- two candidates seem to be targeting supported middle-class tax relief in his ternative minimum tax fix. Senator the same middle-class family popu- Senate career. As far as I am aware, MCCAIN would extend the alternative lation. I depicted that band of middle- Senator MCCAIN has never voted to minimum tax fix and enlarge it, start- class tax relief on the chart, as we can raise taxes on middle-income families. ing in the year 2013. Under Senator see. Senator MCCAIN helped prevent tax in- MCCAIN’s plan, we would start to re- When we look at how both plans op- creases on middle-income families in duce the reach of the alternative min- erate, Senator MCCAIN’s plan targets 2004 by voting for the Working Fami- imum tax by expanding the patch by 5 new regular family tax relief at mid- lies Tax Relief Act of 2004. Senator percent per year on top of the increase dle-class families between $32,000 and MCCAIN’s budget votes have consist- in exemption amount of the patch for $120,000. Senator OBAMA targets new ently provided room for the extension inflation. That proposal would provide regular family tax relief at middle- of the lower income tax rates as well as more relief to some of the 4 million class families between $38,000 and suspension of the harmful PEP and families currently paying the alter- $66,000. Both candidates target the PEASE provisions that are now being native minimum tax. same population for AMT patch exten- phased out because of the 2001 tax bill. If we step back and take a look, we sion. Senator MCCAIN proposes addi- In addition, Senator MCCAIN has been see that Senator MCCAIN would further tional alternative minimum tax relief consistently a supporter of even the re- reduce regular taxes for families be- by expanding the AMT patch in the peal of those two provisions. tween $32,000 and $120,000. Again, we year 2013 and beyond. On the other hand, Senator OBAMA have up the same chart. Senator Let’s turn to the second question. voted for the Democratic budget and MCCAIN would extend the AMT patch The question is, How will Senators the budget conference report this year and gradually enhance it, and most of MCCAIN and OBAMA deal with middle- that did not provide room to protect the families who would benefit from class family tax relief that will expire? Americans in the 25-, 28-, 33-, and 35- the AMT patch have incomes between The bipartisan tax cuts, from 2001 and percent tax brackets from being hit $50,000 on the low end and $200,000 on 2003, provide a very large amount of with this tax increase that will auto- the high. So it looks as if Senator tax relief to middle-class families. So matically happen at the end of 2010 be- MCCAIN’s operational definition of mid- the question is, Should we allow this cause of sunsets. So we get, as I said dle class probably conforms to the defi- tax relief to expire, as it will at the end once before, the biggest tax increase in nition that we find in public opinion of 2010? And if Congress doesn’t do any- the history of the country, without a polls. thing, as you have heard me say, we vote of Congress.

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00023 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.046 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10138 CONGRESSIONAL RECORD — SENATE September 30, 2008 According to the IRS, single individ- its, such as the child tax credit and the tained a proposal to completely phase uals falling within the 25-percent lifetime learning credit, were adopted out the AMT. In fact, in the Senate, bracket in 2008 start at taxable income without any regard to the AMT. The that conference report passed on Re- of more than $32,550. They earn taxable AMT limited the use of nonrefundable publican votes only, including Senator income of no more than $78,850. Singles credits, and that did not change. MCCAIN’s. In 2001, when the AMT patch in the 28-percent bracket will earn tax- However, Congress quickly realized began, Senator MCCAIN supported the able income of more than $78,850 or less the ridiculousness of this situation and Senate version of the tax relief bill than $164,550. waived the AMT disallowance of non- that patched the AMT for a longer pe- Senator OBAMA said in the Presi- refundable personal credits, but it only riod of time. Moreover, Senator dential candidates’ September 26, 2008, did it through the year 1998. In 1999, the MCCAIN voted for the Tax Increase Pre- debate he would not raise taxes a dime issue again had to be dealt with. The vention and Reconciliation Act of 2005 on people making under $250,000. But Congress passed the Taxpayer Refund and later bills that extended the AMT his two budget votes in 2008 do not pro- and Relief Act of 1999. In the Senate, patch. vide room for him to keep that prom- only Republicans voted for the bill. In stark contrast to Senator ise. In fact, he could not even make That bill included a provision to fi- MCCAIN’s voting record of providing re- good on that promise to those singles nally repeal the alternative minimum lief from the AMT, Senator OBAMA making over $32,550 on taxable income tax that was on the books from 1969 to voted against the AMT patch contained based on the Democratic budget he that point. Senator MCCAIN voted in in the Tax Increase Prevention and voted for. favor of this bill to repeal the AMT. Reconciliation Act of 2005. Also, Sen- Instead, these taxpayers with over However, then-President Clinton ve- ator OBAMA opposed Republican budg- $32,550 in taxable income would be hit toed the bill. So we still continued to ets in 2005 and 2006 that provided rev- with a hidden marginal tax rate in- have the alternative minimum tax. enue room for the AMT patch. Senator crease in the PEP and PEASE cat- Later on, in 1999, an extenders bill, OBAMA supported the 2007 Democratic egories as well as a transparent mar- including a fix good through 2001, was budget that omitted any revenue room ginal tax rate increase according to the enacted which held harmless AMT for a for such an AMT patch. In 2008, Sen- budget that Senator OBAMA voted for. little while longer. ator OBAMA supported the Democratic I turn now to the harmful alternative In 2001, we departed from these tem- budget that, for the first time in this minimum tax, or the AMT. Both par- porary piecemeal solutions to fix the election year, provided some tax relief ties agree the AMT is a tax on the mid- AMT through the tax bill of 2001. That revenue room for fixing the AMT. dle class that the middle class should bill permanently allowed the child tax Senator MCCAIN supported the 2008 never have to pay. Why it hits them— credit, the adoption tax credit, and the Republican budget that provided simi- and they should never have to pay it— IRA contribution credit to be claimed lar revenue room for the AMT. and why Congress takes corrective ac- against a taxpayer’s AMT. While this Therefore, when looking at each can- tion is because it was never indexed. In was certainly not a complete solution, didate’s voting record, the conclusion addition, both parties deserve blame it was a step in the right direction. that becomes apparent is Senator for the problem we have, that the AMT More importantly, the 2001 bill was a MCCAIN has been much more sup- is not indexed. However, the Omnibus bipartisan effort to stop the further in- portive of middle-class tax relief than Budget Reconciliation Act of 1993, trusion of the alternative minimum Senator OBAMA. passed strictly on party-line votes by a tax hitting the middle class. The pack- I will now turn to that third and final Democratic majority and signed into age Senator BAUCUS and I put together question I posed at the beginning of my law by President Clinton, did even a lot effectively prevented inflation from remarks: What new proposals do the more damage to the alternative min- pulling anyone else into the AMT candidates offer on middle-class tax re- imum tax. through the year 2005. lief? We are going to move from the ac- In the 1993 tax bill, the exemption Our friends in the House originally tions of the candidates and look, in- level was increased to $33,750 for indi- wanted to enact a hold harmless only stead, at their words and what we can viduals and $45,000 for joint returns, through the end of 2001. But the final anticipate on whoever is sworn in on but this was accompanied by yet great compromise bill signed by the Presi- January 20 next year. increases beyond what was already in dent increased the AMT exemption Let’s take a look at Senator law. Importantly, as in previous bills amount through 2005. Since the 2001 tax MCCAIN’s tax plan. Senator MCCAIN related to the AMT, these exemption relief bill, the Finance Committee has proposes to extend all of the 2001 and amounts were not indexed for inflation. produced bipartisan packages to con- 2003 bipartisan tax relief. In other By the way, the 1993 tax increase was tinue to increase exemption amounts words, for the most part, it seems to passed on strictly party-line votes, to keep taxpayers ahead of inflation, me you can say Senator MCCAIN does with the Democrats supplying the ma- including the bill of 2005. Most cur- not want to increase taxes, by keeping jority. rently, the 2007 AMT patch was ex- the present tax policy basically where Once again, graduated rates were in- tended in late 2007. Hopefully, the it has been, at least as far as not troduced, except this time they were 26 House will go along with what we did sunsetting in 2010 what we did in 2001 percent and 28 percent. By tinkering last week, and we will extend that and 2003 and, hence, not get the biggest with the rate, as well as the exemption through 2008. tax increase in the history of the coun- level of the AMT, these bills were only These packages put together since try, without even a vote of Congress, doing what Congress has been doing on 2001 are very unique in that they are because that is what happens when a bipartisan basis for almost 40 years, the first sustained attempt undertaken those tax provisions expire. Also, that which is to undertake a wholly inad- by Congress to stem the spread of the is where you go back to that family of equate approach to the problem that AMT through inflation, hitting the four getting a $2,300 tax increase on a keeps getting bigger. By ‘‘problem’’ I middle class who was never intended to married couple making $50,000. Like- mean taxing middle-income people by be hit. wise, a single mom with two kids who the alternative minimum tax—a class Now, admittedly, these were nothing makes $30,000 a year would save an av- of people whom it was never supposed but short-term fixes. But they illus- erage of $1,100 if the 2001 and 2003 tax to apply to. trate a comprehension of the AMT in- cuts are extended. Now, we have gone Aside from this futile tinkering I flation problem and what needs to be through those figures before, but they suggested from the 1993 bill, Congress— done to solve it. are up here on the chart so you can re- and, of course, we have tinkered with I now look at how the candidates call what I previously had said. But I the AMT over the years to keep it from have voted with respect to the AMT. think it is necessary to emphasize it hitting additional middle class—Con- Senator MCCAIN has consistently voted because that is exactly what is going gress has in other circumstances com- to protect Americans from the alter- to happen at the end of 2010 if Congress pletely ignored the impact of tax legis- native minimum tax. Senator MCCAIN does not step in and keep the American lation on taxpayers caught by the voted for the Tax Refund and Rec- people, but, more importantly, the AMT. In the 1990s, a series of tax cred- onciliation Act of 1999, which con- American economy, from being harmed

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00024 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.047 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10139 by the biggest tax increase in the his- credit into a refundable credit, and the lion in estimated new spending to the tory of the country without a vote of maximum credit for a married couple revenue loss from Senator MCCAIN’s the Congress. is $500. tax plan, this results in a total of $5.2 In addition, Senator MCCAIN proposes Senator OBAMA proposes to rename trillion of revenue loss, plus spending additional AMT relief by expanding the the HOPE and lifetime learning credit for Senator MCCAIN’s plan. AMT patch in 2013 by indexing the by calling it the American opportunity Now let’s look at Senator OBAMA’s patch by an additional 5 percent per tax credit. In addition, he would like to tax and spending plans. Would Senator year in addition to the indexing done increase the maximum amount of this OBAMA’s Democratic colleagues who for inflation, until the joint exemption refundable credit from $1,800 to $4,000 have an obsession with pay-as-you-go amount is $143,000, at which time the and to make the credit refundable. on the tax side but not on the spending patch would only be indexed for infla- Finally, Senator OBAMA claims he side, including House Blue Dog Demo- tion. Therefore, those families making wants to expand the earned-income tax crats, go along with increasing the def- $143,000 and below would eventually be credit in various ways. He also claims icit approximately $3.6 trillion by Sen- exempt from the AMT, and this $143,000 he wants to expand the child and de- ator OBAMA’s proposed tax cuts? This is amount would be indexed for inflation. pendent care credit by making it re- even before taking into account the Senator MCCAIN would also double fundable. spending increases Senator OBAMA is the dependent exemption from the cur- I turn now to examine whether Sen- proposing. rent amount of $3,500 to $7,000. Senator ator MCCAIN’s and Senator OBAMA’s According to the nonpartisan NTU’s MCCAIN proposes to do this by increas- promises regarding middle-class tax re- analysis, which was updated September ing the dependent exemption by $500 lief are realistic. Even if we assume 25, 2008, Senator OBAMA has proposed to each year beginning in 2010, until it both Senators want to enact all the tax increase spending by $293 billion per reaches that $7,000 by the year 2016. cuts they are promising, could they de- year, which amounts to $2.9 trillion in Therefore, this would provide signifi- liver on these promises? additional spending over the 10-year cant additional tax savings for any The nominally nonpartisan Tax Pol- window the Congressional Budget Of- married couple or single parent with icy Center estimates that Senator fice uses. Therefore, Senator OBAMA is one or more children. The tax relief OBAMA’s tax plan will lose $2.9 trillion proposing tax and spending programs provided by the doubling of the depend- over 10 years when compared to cur- that would increase the deficit by $6.5 ent exemption would be in addition to rent law. I have used this chart before trillion before even considering the tax relief provided by the alternative in my speeches. I won’t go into detail, cost of interest resulting from such an minimum tax patch and extension of but you can see the Obama plan is the astronomical addition to our national the 2001 and 2003 tax cuts. top red line there which says how much debt. Therefore, Senator OBAMA pro- Now, let’s look at Senator OBAMA. He it would lose. As I mentioned in a pre- has said he is in favor of extending poses to increase the national debt by vious speech, this $2.9 trillion figure in- a whopping $1.3 trillion more than Sen- what he calls the Bush tax cuts, except accurately assumes that Senator for those Americans who make over ator MCCAIN over that next 10-year pe- OBAMA’s plan will be partially offset by $250,000 a year. As I have mentioned be- riod. $925 billion in revenue raisers. The Tax A portion of Senator OBAMA’s March fore, these should not be referred to as Policy Center refers to Senator the ‘‘Bush tax cuts,’’ because if Presi- 13, 2006, speech regarding fiscal respon- OBAMA’s $925 billion number as an ‘‘un- dent Bush had gotten his way in 2001, sibility is posted on his campaign Web verifiable campaign-provided revenue site. A portion of this speech states: they would have been much more than estimate.’’ As I mentioned in that pre- what they were. So Senator BAUCUS If Washington were serious about honest vious speech, a more realistic estimate and I sat down in 2001. We were the tax relief in this country, we would see an ef- of revenue raisers over 10 years is ap- fort to reduce our national debt by returning leaders of the Finance Committee, as proximately $220 billion, meaning Sen- to responsible fiscal policies. we are still; in his case, the chairman ator OBAMA’s tax plan would actually Senator OBAMA’s proposal to increase now, and I am ranking Republican. We lose another $705 billion in revenue. the national debt by $6.5 trillion is in- worked on a bipartisan basis and did Therefore, the total revenue lost from consistent with his statement regard- something significantly different than Senator OBAMA’s plan is not $2.9 tril- what President Bush wanted to do. ing a return to fiscally responsible pol- lion over 10 years but instead is ap- Regardless, Senator OBAMA says he icy. would extend all of the 2001 and 2003 bi- proximately $3.6 trillion over 10 years. Even if he really did want to provide partisan tax relief for those making The figure for Senator MCCAIN’s plan the tax relief he is promising, would a $250,000 or less. This includes the provi- is higher. As my colleagues can see, the Democratic Congress let Senator sion I discussed above regarding the Tax Policy Center shows Senator OBAMA make good on most of his prom- 2001 and 2003 bipartisan tax relief, in- MCCAIN’s plan to prevent widespread ises that would provide middle-class cluding lowering some of the marginal tax increases would lose revenue of $4.2 tax relief? Also, would a Democratic tax rates, providing marriage penalty trillion over 10 years. In addition, as I Congress fight attempts by Senator relief and doubling the amount of the mentioned in my prior remarks to the MCCAIN to enact the tax relief pro- child tax credit to $1,000 per child. Senate, Senator MCCAIN’s proposal as- posals he has made? Although Senator OBAMA’s voting sumes revenue raisers of $365 billion. If Similar promises to those made by record might indicate otherwise, Sen- we net that $365 billion number against Senator OBAMA were made by can- ator OBAMA claims that he is in favor the known revenue raisers number of didate Clinton in 1992. Candidate Clin- of ‘‘fiscally responsible AMT reform.’’ $220 billion, we find that Senator ton said taxes wouldn’t be raised on The Tax Policy Center assumes this MCCAIN’s plan is short of revenue rais- people making under $200,000 a year. means using the alternative minimum ers by $145 billion. Therefore, adding However, President Clinton then raised tax patch and indexing that patch for this $145 billion to the revenue loss of taxes on everyone making $20,000 and inflation to prevent more middle-class $4.2 trillion that the Tax Policy Center over in 1993. Americans from being hit by the AMT estimates for Senator MCCAIN’s tax re- Perhaps Senator OBAMA would be each year. lief plan results in total revenue loss of able to provide some of the tax relief Senator OBAMA is proposing a new $4.3 trillion. he has been promising but only to $500 tax credit called the making work The National Taxpayers Union, also those Americans falling within his nar- pay credit that has the effect of ex- referred to around here as the NTU, is row version of the middle class, stop- empting the first $8,100 of earnings a nonpartisan public policy research ping at individuals making $66,000 or from the Social Security tax. He also organization. The NTU’s analysis, up- less, that he has been using in his cam- proposes a credit of up to $800 equal to dated September 25, 2008, says that paign ads stating that he will provide 10 percent of the mortgage interest Senator MCCAIN’s plan would include three times more tax breaks than Sen- paid by Americans who do not itemize new spending of $92.4 billion per year. ator MCCAIN. Senator OBAMA has deductions. According to the NTU, this would re- changed his definition of the middle Senator OBAMA also proposes turning sult in spending increases of $924 bil- class from $250,000 and below in his the current nonrefundable saver’s tax lion over 10 years. Adding this $924 bil- public statements to those making

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00025 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.047 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10140 CONGRESSIONAL RECORD — SENATE September 30, 2008 $66,000 and below in his campaign ads in a 2003 Washington Times story. He, too, The PRESIDING OFFICER (Ms. and on his campaign Web site. This is found no generally accepted definition, but KLOBUCHAR). The Senator from North definitely a change, but if you make he did get this broad one from Jared Bern- Dakota is recognized. more than $66,000, I wouldn’t think this stein, an economist at the liberal Economic Mr. DORGAN. Madam President, are Policy Institute: ‘‘There are working fami- is a change you would ever want to be- lies who can pay their bills, but they have to we in a period of morning business? lieve in. One man’s change is another really think about such minimal expendi- The PRESIDING OFFICER. We are man’s flip-flop. tures as picking up a pizza after work, going postcloture on the motion to concur. Considering the history when the to the movies, making a long-distance tele- THE ECONOMY Democratic Party has had control of phone call. They may have some invest- Mr. DORGAN. Madam President, I the House, the Senate, and the Presi- ments, but they depend on each paycheck for wish to talk about what is happening dency—and I am going to put my ther- their well-being.’’ in the economy, the consequences, a But others could have different definitions. mometer chart back up here—consid- bit about what happened yesterday, ering the history of when the Demo- Baker interviewed a man who earned about $100,000 a year and a woman who made and what I think we should do going cratic Party had control of the House, $35,000, both of whom said they were middle forward. the Senate, and the Presidency, are class. Yesterday, as most Americans now you confident that Democrats won’t Public opinion polls show how slippery the know, the stock market had a very sig- raise taxes on you if you make $67,000, term can be. An Oct. 2007 poll by the Kaiser nificant down day—777 points down. which is above the middle class, ac- Family Foundation, Harvard School of Pub- Today it is up over 300 points as I cording to one of Senator OBAMA’s two lic Health and National Public Radio asked speak. 1,527 adults what income level makes a fam- inconsistent definitions of middle We have gone through a very difficult class? As history has shown us, the ily of four middle class. About 60 percent said a family earning $50,000 or $60,000 fit time for a long period of time in this largest tax increases come when Demo- that description. But 42 percent answered an country. I wish to talk about the crats control the House, the Senate, income of $40,000 and 48 percent said $80,000 causes of it and the consequences of it. and the Presidency, and you see it at were both middle class. I am not going to, as some do, come to the top of the thermometer there. The Other polls suggest that 90 percent or more the floor to describe one party or an- lowest levels of taxation happen when of Americans consider themselves to be other that is responsible for this or ‘‘middle class’’ or ‘‘upper-middle class’’ or you have a Republican President and that. I don’t think that is particularly you have a Republican Congress. As ‘‘working class.’’ An April 2007 poll by CBS News found that of 994 adults surveyed only helpful today. But I do wish to say you look at the bottom, the figures ap- 2 percent said they were ‘‘upper class,’’ and 7 that, tracking back to a couple of sig- pear at the bottom of the thermom- percent said they were ‘‘lower class.’’ In an- nificant events—one in 1999 when the eter. other poll, taken by Gallup/USA Today in Congress, without my support, passed a We need to carefully scrutinize Sen- May 2006, 1 percent said they were ‘‘upper piece of legislation that essentially re- ator OBAMA’s claims that Senator class,’’ and 6 percent said they were ‘‘lower pealed what is called the Glass- MCCAIN wouldn’t provide any tax relief class.’’ Interestingly, since 12.3 percent of Steagall Act. This legislation was put Americans were living below the official fed- at all for 100 million Americans, citing in place by Franklin Delano Roosevelt the IRS statistics of income tax stats. eral poverty level in 2006, these poll findings suggest many who are officially poor still during the Great Depression to protect Moreover, Senator OBAMA has criti- consider themselves to be ‘‘middle class’’ or banks and depositors by separating cized Senator MCCAIN’s tax relief plan ‘‘working class.’’ banks from riskier enterprises of real by saying that Senator MCCAIN’s plan So what do politicians mean when they say estate and securities—I pulled out would not provide any direct tax cut ‘‘the middle class’’? Good question. Each pol- some of Franklin Delano Roosevelt’s other than increasing the dependent itician may be talking about a different radio addresses. exemption. Even the nominally non- group of Americans, but the message many Here is an address he made in 1933. As voters hear is that the politician is talking partisan Tax Policy Center states that my colleagues know, this is a President Senator MCCAIN would provide tax cuts about them. For example, Democratic presidential can- who had to confront the Great Depres- for all Americans, as did the 2001 and didate John Edwards calls for ‘‘tax breaks to sion, and here is what he said: 2003 bipartisan tax relief packages. honor and strengthen three pillars of Amer- We had a bad banking situation. Some of EXHIBIT 1 ica’s middle class: savings, work, and fami- our bankers have shown themselves either Q: Is there a standard, accepted definition lies.’’ One of his proposals is to expand a tax incompetent or dishonest in their handling of what constitutes the ‘‘middle class’’? credit to give dollar-for-dollar matches on of the people’s funds. They had used the Is there a standard, accepted definition of savings up to $500 a year. Some version of money entrusted to them in speculations and what constitutes the ‘‘middle class’’? Politi- that credit would be available to families unwise loans. This was of course not true in cians are fond of talking about how the mid- earning up to $75,000. the vast majority of our banks, but it was dle class will be affected by policies and Republican candidate Mitt Romney, mean- true in enough of them to shock the people laws, but rarely do they define who is actu- while, has proposed eliminating ‘‘taxes on for a time into a sense of insecurity . . . It ally part of that group. dividends, capital gains, and interest on mid- was the government’s job to straighten out A: No, there isn’t. ‘‘Middle class’’ means dle class families.’’ He defines ‘‘middle class’’ this situation and do it as quickly as pos- different things to different people—and poli- as anyone with an adjusted gross income of sible . . . After all, there is an element in the ticians. under $200,000—and acknowledges that such a readjustment of our financial system more There is no standard definition, and in proposal would affect ‘‘over 95 percent of important than currency, more important fact, an overwhelming majority of Ameri- American families.’’—Lori Robertson than gold, and that is the confidence of the cans say they are ‘‘middle class’’ or ‘‘upper- SOURCES people. You people must have faith; you middle class’’ or ‘‘working class’’ in public U.S. Census Bureau. 2006 American Com- must not be stampeded by rumors or guesses. opinion polls. Hardly anybody considers Let us unite at banishing fear. We provided themselves ‘‘lower class’’ or ‘‘upper class’’ in munity Survey. Income tables, accessed 23 Jan. 2008. the machinery to restore our financial sys- America. tem. It is up to you to support it and make It’s possible to come up with a definition of NPR, the Kaiser Family Foundation, and it work. what constitutes ‘‘middle income,’’ but it the Harvard School of Public Health. Survey: will depend on how large a slice of the mid- Public Views on SCHIP Reauthorization. That was Franklin Delano Roosevelt dle one prefers. If we look at U.S. Census Bu- Survey conducted Oct. 8–13, 2007. 17 Oct. 2007. in 1933. In 1934, he said this: reau statistics, which divide household in- Survey by CBS News, April 9–April 12, 2007. The second step we have taken in the res- come into quintiles, we could say that the Retrieved 23 Jan. 2008 from the iPOLL toration of normal business enterprise has ‘‘middle’’ quintile, or 20 percent, might be Databank, The Roper Center for Public Opin- been to clean up thoroughly unwholesome the ‘‘middle’’ class. In 2006, the average in- ion Research, University of Connecticut. conditions in the field of investment. In this come for households in that middle group Survey by USA Today and Gallup Organi- we have had assistance from many bankers was $48,561 and the upper limit was $60,224. zation, May 5–May 7, 2006. Retrieved 23 Jan. and businessmen, most of whom recognize But we could just as reasonably use another 2008 from the iPOLL Databank, The Roper the past evils in the banking system, in the Census figure, median family income. In 2006, Center for Public Opinion Research, Univer- sale of securities, in the deliberate encour- the median—or ‘‘middle’’—income for a fam- sity of Connecticut. agement of stock gambling, in the sale of un- Baker, Chris. ‘‘What is middle class?; In- ily of four was $70,354. Half of all four-person sound mortgages and in many other ways in come isn’t necessarily sole measure.’’ The families made more; half made less. which the public lost billions of dollars. Journalist Chris Baker examined the am- Washington Times, 30 Nov. 2003. They saw that without changes in the poli- biguous meaning of the term ‘‘middle class’’ Mr. GRASSLEY. I yield the floor. cies and methods of investment there could

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00026 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.048 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10141 be no recovery of public confidence in the se- $29 billion so that J.P. Morgan can buy told are too big to fail, which means we curity of savings. Bear Stearns so Bear Stearns doesn’t guarantee them. The Federal Reserve Sounds a little like today, although have to go belly up. Board has a list of firms too big to fail. Franklin Delano Roosevelt then took I was looking in the Wall Street They are apparently not too big to reg- very aggressive steps to say we are Journal today, and there is something ulate, just too big to fail, so the Amer- going to separate banking from risk. about Bear Stearns. It is kind of inter- ican taxpayer has to guarantee it. You are no longer going to be able to esting because it relates to what I am Here is what has happened as a re- have an FDIC-insured deposit institu- going to talk about in a whole range of sult. Bank of America buys Merrill tion called a bank and merge it with these areas. It relates to something I Lynch. Washington Mutual is put on the speculation in real estate and secu- call ‘‘dark money.’’ That is a massive top of J.P. Morgan Chase. Citigroup, rities. You just cannot do it. The Con- amount of money, essentially like yesterday, buys Wachovia. What we gress passed, at the President’s re- money in a casino, that is moving have done is continued to consolidate quest, something called the Glass- around speculating that no one can see, even bigger and bigger firms. These Steagall Act. That lasted for nearly 80 no one knows who has it, where it is, three firms comprise almost one-third years, until 1999, when it was repealed. how much it is. of all the banking activity in America There was a story this morning in a This article is entitled ‘‘Too Much now. Too big to fail? What is the an- Wisconsin newspaper quoting me and Money Is Beyond Legal Reach,’’ from swer? Make them bigger. It doesn’t quoting my late colleague, Paul the Wall Street Journal. It talks about make any sense to me, but that is ex- Wellstone, who sat at the end of that the ‘‘$1.9 trillion, almost all of it run actly where it is going. out of the New York metropolitan row. We both spoke on the Senate Let me describe what I think is no- area, that sits in the Cayman Islands, a floor. There were eight of us who op- fault capitalism. You have all this dark secrecy jurisdiction. And another $1.5 posed the Financial Modernization Act, money, and what has happened is you trillion is lodged in four other secrecy they called it, because they always have had all of these fancy financial jurisdictions.’’ wrap bad things in good names. The Fi- engineers who have concocted in recent Then they say: years since 1999—since the shackles nancial Modernization Act, what a mis- Most recently, two Bear Stearns hedge named act, but it repealed the Glass- were taken off to do whatever they funds, based in the Cayman Islands, but run want, by and large, and since this ad- Steagall Act. It set the stage for large out of New York, collapsed without any financial holding companies. It set the warning to its investors. Because of the loca- ministration came to town bragging it stage for banks to be engaged in more tion of these financial institutions—in se- wasn’t going to regulate. We hired the risk. They said: We have to do this to crecy jurisdiction, outside the U.S. safety regulators, paid the regulators, but move forward. Senator Phil Gramm ac- net of appropriate supervision—their des- they boasted they were not interested perate financial condition went undetected in regulating anything. tually led the charge. Gramm-Leach- until it was too late. Bliley was the name. Modernization I am quoting Steven Pearlstein who You run the dark money through they called it. wrote a terrific piece on this earlier hedge funds, through Bear Stearns, Some of us said it was going to be an this year: through the Cayman Islands, it all goes unbelievable debacle. Here are a couple Wall Street has been brilliant at dreaming belly up, no one even knows it is there. things I said when it passed the Senate up other financial innovations that picked Then we have to find in a weekend that up where junk bonds left off. These included the first time: the American taxpayers should put up complex futures and derivatives contracts; I say to the people who own banks, if you $29 billion so that J.P. Morgan can bail loan syndication; securitization; credit de- want to gamble, go to Las Vegas. If you want out a failed Bear Stearns. fault swaps; off-balance-sheet vehicles; to trade in derivatives, God bless you, do it collateralized debt obligations . . . with your own money. Do not do it through Madam President, $300 billion imme- diately following that was available to And on and on. the deposits guaranteed by the American What happens is this financial engi- people. investment banks that are unregulated because the Federal Reserve Board neering that was so brilliant put every- Further, I said on the same day on body at risk—everybody. He says junk the floor of the Senate: said: Investment banks can come to our loan window and get loans directly bonds were the first. I know something This bill will, in my judgment, raise the about junk bonds because I am the per- likelihood of future massive taxpayer bail- from the Federal Reserve Board. Never in the history of this country has that son who passed the legislation that outs. brought down that market on junk I wish I had been wrong. I take no joy been allowed. Only FDIC-insured regu- lated banks could do that. It is esti- bonds when, in fact, Michael Milken, in being right. sitting in his car in the morning riding When the bill came back in Novem- mated that $300 billion in direct loans from the window of the Federal Re- as a passenger, going to work at Drexel ber as a conference report and eight of Burnham, was wearing a miner’s hat us voted against it in 1999, I said: serve Board went out to unregulated Wall Street firms. with a lamp on it so he could study his Fusing together the idea of banking, which Then bailing out Freddie and Fannie. financial sheets. What he was doing is requires not just safety and soundness to be creating junk bonds and parking them successful but the perception of safety and J.P. Morgan Chase in Lehman financ- ing. They have been around since the in federally insured institutions. soundness, with other inherently risky spec- The hood ornament of the excess ulative activity is, in my judgment, unwise Civil War and went belly up through .... bad investments. AIG, the insurance back in those days was that the Amer- ican taxpayers eventually ended up Then I said on the same day in No- company, goes belly up, and so there is having to own and take possession of vember 1999 before the vote: an $85 billion loan provided by our Gov- ernment to prevent their failure. Why nonperforming junk bonds in one of We will in 10 years time look back and say: America’s largest casinos. Think about We should not have done that did they fail? We are told a small unit in England with about 375 employees the stupidity of all that. I passed the Repeal Glass-Steagall— were engaged in something I will talk legislation that shut that down, so I because we forgot the lessons of the past. about in a bit, credit default swaps, know about those excesses. What did we allow to happen as a re- which is essentially a huge gamble, and Now we have credit default swaps and sult of all of this? We have seen today it pulled that whole company down, so CDOs and so many other exotic instru- a substantial amount of activity as a the Federal Government had to bail ments and, by the way, so complicated result of the collapse on Wall Street them out with $85 billion. And $50 bil- that a lot of people don’t even know and in the banking industry. Here are lion has now been pledged as guaran- what they are. Even those who have just a few of the actions most recently. tees for certain money market funds. issued them cannot very easily under- J.P. Morgan decided to buy Bear In recent days, Washington Mutual, a stand them. What they have done is Stearns because Bear Stearns was big bank, had to be taken over. Then in been able to hide risk, liabilities and going to go belly up. And over a week- more recent days we have had losses from investors. ‘‘They have end, they worked, and the Federal Re- Wachovia bank subsumed. given traders a greater ability to se- serve Board and the Secretary of Here is what is happening. We have cretly manipulate markets,’’ Mr. Treasury said the taxpayers will put up all these financial institutions we are Pearlstein says, and I agree.

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00027 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.050 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10142 CONGRESSIONAL RECORD — SENATE September 30, 2008 Let me talk about this chart, the no- by the way, many of them are worth 12 months’ payments if you call in the next fault capitalism portion. their weight in gold. But what I see 7 days. We will pay it for you. Our loan pro- Merrill Lynch went belly up. What here is a form of no-fault capitalism in gram may reduce your current monthly pay- did the CEO of Merrill Lynch make last which a substantial amount of money ment by as much as 50 percent and allow you no payments for the first 12 months. year? He made $161 million for running is paid to some who run these corpora- Here is a mortgage company saying, a company that got into trouble and tions right into the ground, run their get a home mortgage from us and you had to be purchased. I don’t under- financial firms right into the ground don’t have to make a payment for 12 stand. with unbelievably risky bets on credit months. They didn’t, of course, say we John Mack, Morgan Stanley—they default swaps, collateralized debt, in are going to put that on the back end got into trouble—$41 million compensa- which they back their balance sheet and that, ultimately, you will pay tion last year. with risk, in some cases even move it more for that home, and we are going Bear Stearns, the first company I offshore to tax haven countries at un- to increase the interest rate. mentioned, we had to arrange the pur- believable risks, and then the Amer- Zoom Credit. I don’t know who the chase, the American taxpayers had to ican taxpayers are told: You know CEO is or what he made, but here is put up $29 billion to guarantee it, and what. It didn’t work very well, and you what they said. the CEO of Bear Stearns made $34 mil- need to pay for it. lion last year. Let me go through the roots of this Credit approval is just seconds away. Get Lehman Brothers went belly up. The on the fast track at Zoom Credit. At the situation. I have done this many times. speed of light, Zoom Credit will preapprove CEO made $22 million last year. But as people sit on the edge of the you for a car loan, a home loan, or a credit Washington Mutual went belly up. chair watching what is happening to card. Even if your credit’s in the tank, Zoom The CEO made $14 million last year. By the Dow Jones Industrial Average Credit’s like money in the bank. Zoom Cred- the way, they just had a new CEO, or today, they need to understand what is it specializes in credit repair and debt con- did. He had been on the job 3 weeks and the root rot that exists out there, what solidations, too. Bankruptcy, slow credit, no signed a contract for a $7 million bonus is spoiled and rotten at the bottom. credit—who cares? for signing and a $12 million termi- Let me describe what happened. It is That is unbelievable, isn’t it? So we nation fee. I understand that has been not very complicated. had all these mortgages put out there, voided. But it just shows you the same Almost every American has heard and we had a lot of people buying money is ricocheting around in the the radio and television ads over recent them, and here is what would happen. halls of these firms. years: You know what you really need Countrywide would get a broker. They AIG, Martin Sullivan—we had to bail to do is get a better home mortgage, would sell somebody one of these mort- out AIG he made $14 million last year. and we have one for you. We will give gages—perhaps call them at home at The question is, Where is the dis- you a home mortgage where you get a night and say: You want to cut your cipline? There is so much money rico- 2-percent interest rate. Yes, that is home mortgage payment by two- cheting around Wall Street from all of right. Sounds unbelievable; it is not. thirds? We have a good deal for you. So these issues, and now we are told they We will give you a 2-percent interest they would go to Countrywide, they all went sour. There are toxic, mort- rate on your home mortgage. We are would securitize the loan, package gage-backed securities, and the Amer- not going to tell you, at least not very them together with other loans into ican taxpayers somehow have to come loudly, that it is going to reset in 3 what is called a security, and then they up with the money. years to 10 percent, but we can get you would sell it upstream. They would put Let me talk for a moment about in at 2 percent. And by the way, home good loans in with bad loans, subprime hedge funds. Warren Buffett once values are increasing. Get this loan at with regular. They would cut them, called hedge funds ‘‘financial weapons 2 percent, cut your monthly mortgage slice them and dice them and hedge of mass destruction’’ because of the payment by two-thirds, and then, if 3 funds and investment banks and others damage they can do to Wall Street in years from now you can’t pay the reset would buy them. They didn’t have the an instant. I just talked about some $20 mortgage, you can sell the house. Be- foggiest idea what they were doing. By million, $160 million for folks running tween now and then, you will make a the way, the rating companies were failed institutions. Let me talk about lot of money anyway because home rating these as pretty good securities. the big income earners. The big income values are continuing to go up. That So everybody was fat and happy and earners were John Paulson. He was the was the sales pitch. making lots of money. top of the heap last year. John Paulson So here is what happened all around Now, the result is that all these com- made $3.7 billion. That means when he this country. Here is Countrywide panies—and Wachovia is a good exam- came home from work and his wife mortgage bank. They were purchased. ple because Wachovia was bought by said, How did we do this month, sweet- They were run by a guy named Mozilo. Citigroup yesterday. Wachovia bought heart? he said: Well, we made $300 mil- He was given the Horatio Alger Award. a company called Golden West about a lion this month. Madam President, $3.7 Barron’s named him one of the 30 most year and a half ago, and Golden West billion. Or perhaps he would say to his respected CEOs in America. In 2006, he was putting out these options mort- spouse: I made $10 million today. That made $142 million. As he was touting gages. By the way, these are mortgages would be more accurate—$10 million a his company’s stock, the New York in which they advertise, we will give day. John Paulson was the top income Times reports he was selling $130 mil- you a no documentation mortgage. You earner last year. lion of his company’s stock, even as he don’t have to document your income. How did he make that money? In a was describing what a wonderful stock Or we will give you a no doc or low doc hedge fund he bet very big in the drop it was. loan. No doc meaning you don’t have to of housing values and made $15 billion But here is what Countrywide said. document how much money you make. for his hedge fund. By the way, he also They were advertising: They also say that if you can’t pay hired former Federal Reserve Board Do you have less than perfect credit? Do all your principal, that is okay. You Chairman Alan Greenspan as an ad- you have late mortgage payments? Have you can pay a part of the principal of the viser. Yes, that is the same Alan been denied by other lenders? Call us. mortgage. Or you don’t have to pay Greenspan who was content to be an That is their advertisement. If you any principal, just pay interest. Or you observer as this housing bubble burst, have bad credit, call us. We will give don’t have to pay any principal or all as predatory lending existed, and all you a loan. The biggest mortgage bank the interest, just part of the interest. these exotic instruments and all those in the country, run by a CEO who made Or with Millennia, you don’t have to mortgages I will talk about in a mo- a fortune and then got out—and by the make any payments for the first 12 ment were created and traded. Nothing way, he got away with it—before the months. It got better and better and really seems too wacky these days in company went down. better. Why did they do that? Because the world of finance. But it wasn’t only Countrywide. Here they were locking people into bad There are some wonderful and cre- is what Millennia Mortgage said: mortgages—mortgages with teaser ative people who work in finance and 12 months, no payments. That’s right, we rates, very low, 2 percent in some who run America’s corporations and, will give you the money to make your first cases, to be reset to a much higher rate

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00028 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.051 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10143 in 3 years—and then they would lock in $250,000. If we had changed that over the bowels of the balance sheets of a prepayment penalty so you could time for the value of money, it would some of these corporations. We have to never get out of it. Or to get out you be well over $200,000 now. So I believe it do something that does reform and reg- would have to pay a huge penalty. would be useful and provide some con- ulation. There may never be another Then they would sell it upstream. As fidence to provide that additional in- moment to be able to do it. they sold it upstream, they would sell surance to a $250,000-per-account level. I understand a whole lot of folks have a security that promised a 10-percent But I strongly feel that a couple other been opposed to this for a long time. I interest rate in 3 years with a prepay- things have to be done. have pushed it for years on the floor of ment penalty so it was unlikely the We can’t let this moment pass, and the Senate. Senator FEINSTEIN, I, and person could get out of it, and that se- we can’t have this economy in peril be- many others have been pushing for reg- curity then had a higher yield. All cause of the greed and the avarice of ulation of hedge funds and the regula- these folks were amazed that they were some who decided to take dramatic tion of derivative trading. But as I in- able to buy securities with such a won- risks and to gamble with other people’s dicated when I started, when you have derful rate of return. money. We can’t do that. We can’t pro- a Bear Stearns that has derivative or In the meantime, of course, it all col- ceed without deciding we are going to credit default swaps running through lapsed. Because all those securities got regulate hedge funds and regulate the the Cayman Islands and they go belly out there on the balance sheets of trading of derivatives. We cannot do it. up, and nobody even knew it was these companies buying these securi- Where I come from, you call that leav- there—and they helped pull down this ties in the name of greed—big returns. ing the gate open. You have to close firm—then you wonder how does that Then it all turned sour and began to the gate. happen outside the gaze or view of reg- smell like rotten fish, lying out there In 1999, and even beyond, these insti- ulators? How on Earth does that hap- on the balance sheets, these nonper- tutions and traders and others were al- pen? forming assets. It all turned sour. It lowed to go hog-wild here and do al- We have, unfortunately, been looking began to pull under companies that most everything with almost no super- only at this question of providing the were unwise enough to make these in- vision and no regulation. We have to funding. As I said, I am willing to con- vestments, and they were companies learn from that and understand that sider a process that deals with rescue. all over the country. part and parcel of this action by the I am willing to consider that. But I be- I mentioned some of the ways they Congress has to be re-regulation. Now, lieve that if we move past this moment did it. This is describing part of it. No I have talked about the three Rs that and don’t address the reform and the documentation loans, low documenta- are necessary, and I believe you have regulation piece, we will be back tion loans. Even as we talk about its to do all of it here. I am willing to sup- again—maybe in 5 years, maybe 10 impact on the economy, if you think port something that deals with some years. We will be back again, almost this has stopped, it has not. There is a kind of recovery. I understand the need certainly. credit lockup in this country, they say. to address this. But I also think you Warren Buffett once said, when I Probably so, in some areas. But I went have to do some reform and you have talked to him on the phone, that there to the Internet a couple days ago and I to do some regulation at the same is an old saying on Wall Street: You found, under a search for a no doc in- time. can’t see who is swimming naked until come loans, I found 325 different places You can’t say to the American peo- the tide goes out. Well, you know what, on the Internet that provide these kind ple, by the way, ante up a bunch of the tide is going out. We have lots of of home loans right now: No credit money for recovery and forget reform trouble, and now we see the con- check. Bad credit loans. and forget regulation. If we don’t patch sequences of unbelievable, rampant It has not yet stopped. Here is part of that which we tore in 1999 and decide speculation in institutions that should what I found on the Internet. to take apart again the fundamental have known better. We have to try to Easy loan for you. Do you have bad credit? banking functions of the federally in- protect the financial system of the Get approved today. sured institutions, if we don’t separate United States from collapsing. I under- You can go find that on the Internet them from the inherent risk that exists stand that. We have to do that. But we right now. Here is another one you can in investment banking and others, cannot possibly ask our constituents to find on the Internet right now: where they take these risks with believe in that mission if we don’t also speedybadcreditloans.com. Think of things such as swaps and collateralized provide the regulation and reform that that. How unbelievably ignorant, debt obligations and others, if we don’t must accompany it. We can’t do half a speedybadcreditloans. When we face understand the lesson, we are destined job. the crisis we now face because of this to repeat it, just as sure as I am here. As I indicated, I am not suggesting unparalleled greed and the toxic mort- You have to have reform. Reform is to that legislation has to, in the 130-some- gage-backed securities that exist on back up some steps and to decide to page bill, describe exactly how you reg- the balance sheets of all these compa- protect the banking institutions from ulate hedge funds or how you regulate nies, threatening to bring down these excessive risk. Regrettably, we went in derivative trading. corporations, and they are still selling the wrong direction in 1999. I think we But I do believe we ought to describe them. need to go back some ways. a specific date by which a rulemaking SpeedyBadCreditLoans. Bad credit, no Second, there is so much dark money process proceeds for that regulation. problem. No credit, no problem. Bankruptcy, out in this economy that you can’t see. Mr. DOMENICI. Would the Senator no problem. Hedge funds. We must have a regu- yield? I think I have described what has put latory provision for hedge funds. I am Mr. DORGAN. I would be happy to out a substantial amount of toxic in- not suggesting the recovery bill itself yield. vestments throughout this country, has to describe the specific set of regu- Mr. DOMENICI. Senator, first, I which has caused unbelievable chaos lations, but the bill can, as it has in a apologize for not hearing all of your re- not just in this country but across the couple other areas, describe a rule- marks. I was in earshot when I heard world. I think there are a number of making process for regulating hedge you talking about available credit, things we ought to do. funds. The same is true with respect to talking about what you could find on I know the discussion yesterday was derivative trading. We have been told the Internet. You showed these adver- about a $700 billion bailout, or rescue there is somewhere around $62 trillion tisements where people are still in the fund, that did not survive in the House in notional value of credit default business of trying to sucker Americans of Representatives. I hope now those swaps out in this country. Most people into buying things they cannot afford who are going to put together some think that sounds like a foreign lan- and vice versa, those companies that changes to that plan—I assume there guage. They wouldn’t even know what are treating our Americans who cannot will be some changes, and I do support it is. It is an unbelievable amount of afford things as suckers and getting some of the discussion today about in- insurance out there against securities them in and telling them to buy things creasing the size of bank accounts that that have become toxic—securities they ultimately cannot pay for. Is that are FDIC insured from $100,000 to that are lying and smelling, fouling in part of your talk here today?

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00029 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.055 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10144 CONGRESSIONAL RECORD — SENATE September 30, 2008 Mr. DORGAN. That is correct. My but we find out when a bank starts fail- our bankers have not been engaged in point was, that which has occurred ing because they are using this as their this at all. They do not have toxic that has caused this unbelievable col- equity—they bought them—and it mortgages, by and large. They have not lapse, I think the Senator from New turns out to be sour because they are invested in these things. But this be- Mexico would agree that what has pre- not paying on the mortgage. You go came a go-go industry—I described cipitated this is the massive amount of look, and there is a house there back- some of them, and I will do it again in failure out there of mortgage-backed ing up that mortgage, and maybe a a minute—with massive amounts of securities that are held on the balance family was in it, but they are already money being made, on Wall Street, I sheets of these financial institutions. 6 months in default and they have left might say. So Wall Street was wal- They turned out to be sour. It has the place and it is falling down, and lowing in cash. You know it and I know begun to pull down on some of these in- you have a mortgage here that you are it—I mean, the highest income earner stitutions. holding. last year, $3.7 billion; that is $300 mil- My point was that you can go to the I do not think we ever painted prop- lion a month, $10 million a day. Internet today and you can find ex- erly for the American people that this So I understand why the American actly the same kind of irresponsible was not a bailout of Wall Street; it was people are angry. They are saying, you advertising that existed for a long an effort to buy up those assets, these know: If you have to do something to time, including the biggest mortgage mortgages that were out there that rescue the financial system, for gosh bank in the country, Countrywide, were not going to be paid, that could sakes, don’t let the system collapse, which is saying: Bad credit, come over not be paid, and they had gone sour. but they also say: Let’s clean up this here, we will give you a loan. The same We are trying to buy them and let the carnival of greed that existed around things exists. Go to the Internet today, system work while we try to repackage here that caused this to happen. and you will find exactly the same kind them and sell them. It could very well So that is why I think the American of advertising. be, Senator—I think you would agree— people—I do not know who uses the Mr. DOMENICI. I think Countrywide that when this $700 billion, or whatever term ‘‘bailout’’ or ‘‘rescue,’’ but that is has been taken over by Bank of Amer- number it is, is used, it will come back why the American people looked at ica. to the Federal Government as they sell this and said: Wait a second, I want Mr. DORGAN. It has. the toxic assets they buy. They will be you to do the whole job, not half a job. Mr. DOMENICI. Let me say to the buying them and bundling them and In my judgment, half a job is putting Senator—and I am giving you an obser- selling them again, and they may bring up whatever money you need at this vation—what has happened, it seems to more money 3 or 4 years from now than point. Perhaps there is a better way to me, in terms of our efforts to pass a you paid for them. do it. Perhaps we ought to invest in the rescue package is that we started out So in no way is it a bailout. It is a capital structure of some of the failing by talking about a bailout—somebody buyout, if anything. I wondered if you institutions and get a return from that. did—and also, at the same time, a Wall had thought of it that way. Is that a The other side of it is to decide that, in Street bailout. You know, what caught fair reading, as you understand things? addition to whatever we decide on the my eye as a Senator wondering wheth- Mr. DORGAN. Well, let me talk money, we are going to re-regulate and er I was going to help with this, until about the banker’s role for a minute, reform. If those two things are not in I found out that there was no bailout because the way the Senator describes the bill, I hope those who are now ne- and Wall Street was not being bailed it is part of my concern. It used to be gotiating will put that in the bill be- out, what was happening was—well, that when you bought a home, you cause I think the American people let’s take the biggest purveyor of mort- would go down to the local savings and might better understand what is going gage-backed securities, and that hap- loan or the local bank and try to nego- to be done. pened to be Fannie Mae and Freddie tiate a home loan. Then sitting across Mr. DOMENICI. Let me say in clos- Mac. They had most of them. What the desk, they would evaluate what ing that I am not sure that a recovery they really were, were mortgages on kind of job do you have, how much bill—that we have time to do the kind homes that people bought by the hun- family income do you have, how secure of reshaping of the regulatory system dreds of thousands. As a matter of fact, is your job, is this a loan we want to that the Senator so aptly describes. I those two entities have mortgaged provide to you because of the risk, and don’t know that it can be done. That more than half, well over half—almost so on. They would make a judgment requires an awful lot of hearings and two-thirds of all American houses. about you. They would check your thinking. They had taken these mortgage-backed credit rating. That is the way it would I would hope this bill doesn’t fail securities and they were selling them. work. It doesn’t work that way in most when they have it ready because, as That is how they made this inordinate cases now. It does in some cases, in somebody as knowledgeable as you— amount of money over the last 10 or 12 most cases not. This has become a big and you know the problem and you years. Then what happened is those go-go effort to get home loans out know we are going to have a big failure mortgage-backed securities—people there, securitize them, and sell the in our system that is going to affect far started looking at it and tried to find mortgage-backed securities. more people than the culprits who got out: Where did they get the mortgages? So when we are talking about banks us into it. I would hope that ultimately I wanted to add to your scenario of buying mortgage-backed securities, I you would help to pass the bill. But I where all of these bad, what we might asked the question: Why should they be understand you would like other things call toxic assets, which are mortgage- buying mortgage-backed securities? that are going to be needed. We are backed securities that are in default, They shouldn’t even have the right to going to have to do them. I will not be where did they come from and where buy mortgage-backed securities that here. I wish you luck. It has been hard are they? And I wanted to make sure are cut into these little pieces of sau- to revamp Freddie Mac and Fannie that your wonderful talk about this sage and sent upstream when they do Mae, but it has been done. I am just subject included the fact that for a pe- not even know what is in them. How not expert enough today to tell you riod of time the U.S. Government was many of them are subprime? They that all of the problems with Fannie pushing very hard on Fannie Mae and don’t have any idea. All they see is an Mae and Freddie Mac have been solved Freddie Mac to accept mortgages on advertised yield that says: Well, if I because we changed their rules when homes that any reasonable person buy this security, I am going to get a we helped and tried to stabilize them knew could not be afforded, could not big, fat income from it. within the last month. And they are be paid for, and they were pushing Going back, I would like to see us get the biggest purveyors of these mort- thousands of them to get people in back to the day when a mortgage is gage-backed securities. homes even if they could not pay for something negotiated across the desk A mortgage-backed security is just a them. And that is thousands of those— from the local banker. I would like to mortgage and a loan put into a pack- hundreds of thousands are coming see the day when you can take a look age, and it becomes a security so that home to roost now, as I understand it, at the balance sheet of a bank—and I it can be traded as a security instru- and we do not even know where we are, would say in my home State most of ment instead of a mortgage being

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00030 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.057 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10145 passed around. Sometimes there are would sell more houses and get more They are in the home. They have pro- lots of them in there, sometimes there people in housing. We made a bad mis- vided some value to that mortgage. All are fewer. take. of a sudden that provides a foundation. But I would hope that, like many I yield the floor. Instead of empty homes and mortgages others, you would express yourself and Mr. DORGAN. I appreciate the com- that are destroyed, you have someone talk to the American people about the ments of my colleague from New Mex- living in the home with a mortgage and problem but also suggest that we have ico. He has been involved in all of the making monthly payments on it. That to do something now or the banking great debates in this Senate for a long would provide some stability for home system, which is our lifeblood—we do time. I always appreciate his thoughts values. It would keep some people in not think it is, but the financial sys- and comments. their homes. We have 2 million people tem is our lifeblood—will go belly-up. Let me say that the collateralizing this year who will have lost their I believe, like you, that there are and securitizing of these exotic instru- homes. That is pretty unbelievable. many changes to be made, but I sure ments was not something that was My colleague said it would be hard to hope we can pass this bill and then in done for fun; it was because it could be- put together a regime of doing the nec- due course have hearings and insist come very profitable to securitize ev- essary regulation of hedge funds or reg- that we change the regulations, impose erything, roll them up into these little ulation of derivatives trading. It would new ones, and do some of the things sausage deals and sell them upstream. be difficult to do that. I am not sug- you have been talking about. Everybody was making a lot of money gesting they have to do that. I am sug- I thank you for letting me—I have doing it, and nobody knew what was in gesting that they mimic what they did had plenty of opportunity here on the them. The interesting thing is that at in the original bill on a couple other floor, and I did not mean to barge in on least when you negotiated your home pieces and require by law a rulemaking you, but I thought maybe we could loan across the desk of the banker in on the regulation of hedge funds, re- have a couple of minutes of exchange the old days, if you found a time when quire by law a rulemaking on the regu- so we understand mutually the prob- you really could not make your pay- lation of derivatives by a date certain. lem. ment—something happened, an illness They don’t have to describe to me ex- Let me also say, Fannie Mae and in the family or something happened— actly what the rulemaking would re- Freddie Mac fooled a lot of us. I don’t you went back to the bank and sat quire in detail or what the regulation ask that as a question of you because I down and said: Look, here is my situa- would require in detail. At least we do not want to ask you whether you tion. Can we work something out? And ought to expect that we begin to re- know it or not, but they were the in- the banker, in most cases, would say: I form and regulate, even as we try to strument that permitted America to understand. Let’s work something out. rescue. One of the important things the have so many millions of homes in the Nowadays, you do not know who has American people continue to ask—and hands of our people. But they were, at the mortgage. The local bank does not it is a very important question—is, certain times, the instrument of push- have it anymore; they have sold it. who is accountable for all of this? Not ing through, as mortgage-backed secu- Countrywide mortgage bank had it. just how did it happen, but who is ac- rities, hundreds of thousands of mort- They do not have it for a very long pe- countable? Who has been made ac- gages on homes that were being bought riod of time. They have sold it to two countable? The answer is no one. They by purchasers who it was known could or three different people, so you do not all got away with their big bonuses and not afford what they were buying. They even know who has it. their money. The consequences are, we were in the merry business of the more That is why, as these things go belly- are bailing all these organizations out. the merrier, whether they pay or not, up, because I think they had predatory We are creating bigger banks. These and they got away with that, and they lending, I think they had terms in three banks will represent one-third of fooled me. I am not sure whether they them that were unbelievable, resetting all the banking business in America fooled you, but they fooled a lot of Sen- mortgages, and so on. These home- now with these new acquisitions. It ators and Representatives. I think they owners were set up for failure, and they used to be that we had these folks who have been caught, and I think they are have no one to go talk to to work it were too big to fail. Now we have got- doing business differently. But they out. ten them too ‘‘bigger’’ to fail. So no were the biggest ones. You can talk That is precisely why one of the most matter what happens to them, the about a bank here and there or some- important provisions that should be in American taxpayer has to be the back- one running an advertisement that this new agreement, and I hope is in a stop. We are going to have to bear the looks as though it is bad, but they were new agreement, is something that consequences of their failure because the ones that were pushing those some now strongly object to; that is, in they are bigger. They were too big to through. And maybe they were asked a bankruptcy proceeding, allowing a fail previously. Where is the account- to by the Government. There seems to bankruptcy court to discharge and ability for predatory lending that was be an enabling act passed that said allow the renegotiation of that home out there? Where is the accountability they were supposed to get out there loan. They would allow the renegoti- for brokers who were putting people and do that even if the people could not ation of a second home or a mortgage into subprime loans. They qualified for afford it. on a boat or a mortgage on almost any- other loans, but they still put them in Our American people ultimately, thing else but not the prime home. subprime. A substantial portion of when this episode has ended, are going That makes no sense. subprime loans were put to people who to be embarrassed with us that during If you believe—and I think most peo- would qualify for regular loans. They this big-boom era of housing, we were ple do—that the foundation of this put them in loans with very bad condi- forcing on the market hundreds upon mess we are in is these bad mortgages tions in which they were almost des- thousands of loans and mortgages in out there, these toxic securities, then tined to fail, with higher interest rates the hands of people that it was known the quickest and best and most effec- being reset in the future. upfront would not be able to pay for tive way to begin putting some sort of People are also concerned about this the houses. That is what they are going a foundation under home values is to issue of compensation. There are some to be surprised about, when they find allow those with those home loans that great CEOs in this country. There are out that was the case as the hearings are troubled to be able to negotiate people running companies and banks commence on changing regulation, as with somebody; in this case, through a and others who do a great job. But this you are suggesting, because we are bankruptcy court, to negotiate that has been a wild ride for unbelievably probably going to be able to identify they could continue to pay, albeit at a excessive compensation. Why is it that how many hundreds of thousands of lower interest rate. At least you would we read that Washington Mutual failed those kinds of loans—they have a have someone who can stay in their and last year the CEO made $14 mil- name; the name slips me, but we call home. You would have someone who is lion? For what? Maybe the board of di- them toxic assets, but they are making a payment every month, prob- rectors will answer for what. Or AIG, subprime loans. Fannie Mae and our ably not what they had intended to the CEO made $14 million last year. Federal Government pushed so that we pay, but they are making the payment. They had a little operation over in

VerDate Aug 31 2005 01:07 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00031 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.058 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10146 CONGRESSIONAL RECORD — SENATE September 30, 2008 London that nearly brought that whole my remarks, because I don’t think that understood the obligations that came company down. We had to bail them will be the last thing people should with it. out. Lehman Brothers, $22 million the consider when they remember Paul This was never someone who pre- previous year, Merrill Lynch, $161 mil- Newman, but the very first. tended to be something he was not. He lion. There is plenty of reason for the Where the charitable work of public did not rise from poverty or grow up in American people to take a look at all figures today often seems motivated a broken home. His father was, in fact, that and say: That is a carnival of less by the public interest than by pub- a successful entrepreneur himself from greed, creating exotic financial instru- lic relations, Paul Newman was a rar- the Shaker Heights section of Cleve- ments they can’t even explain that are ity. land, OH. so complicated. Trading them upward An enormous celebrity whose com- But to watch Paul’s Oscar-nominated and backward and sideways, everybody mitment to making a difference meant turn in that remarkable courtroom making massive amounts of money, far more to him than any box office, drama, ‘‘The Verdict,’’ is to witness and then all of a sudden it goes belly critical notice or award nomination. someone whose true kinship was not up and starts to pull down the entire fi- Believe me. Having known him or 25 with those who came from wealth, nancial system. All of a sudden we are years, I can attest to that. from power or privilege, but with those talking rescue, but nobody is talking A star, with genuine humility, he who struggled, who earned, who over- regulate. cared deeply about the people, not only came. As I said, in my part of the country, of this country but around the world, For all his generosity, kind- they say that is not closing the gate. and made a significant contribution to heartedness, and compassion, there was You have to close the gate. You have their benefit in his own way. We are another side to this man, one that was to shut the gate. If you don’t include all, of course, familiar with the New- utterly driven to succeed, whether it reform and if you don’t include regula- man’s Own brand, which raised nearly was acting or directing, film or the- tion, we are not going to solve this a quarter-billion dollars for charitable ater, charity or business. problem. causes in a quarter century. I suspect I was not the only friend of But that was only part of the story. The next day and a half we will talk Paul’s who did not share his passion for Paul also founded the Hole In the Wall a lot about these issues. My hope is racing, which he often did at our Gang camps for children with life- whoever is negotiating—I know some, State’s Lime Rock Park. threatening diseases that began in and I have been in meetings last But compared to Hollywood, Paul Ashford, CT and has since opened three evening on this subject—will under- found racing’s lack of pretension re- on three different continents. freshing. stand the need that some of us feel Those camps serve more than 15,000 The pure love he had for the sport that anything that is done require the children annually, with all services was what made it such a thrill for issues of reform and regulation that do provided free of charge to everyone. him—a thrill he pursued into his not now exist in the plan that has been He also founded the Rowdy Ridge eighties. offered. Gang Camp, for families recovering He was impossible to pigeonhole. I I yield the floor and suggest the ab- from drug addiction and survivors of loved his sense of humor and irony, a sence of a quorum. spousal abuse. The PRESIDING OFFICER (Mr. These were no vanity causes to which devilish spirit which hid—just barely— WHITEHOUSE). The clerk will call the he simply attached his name and face. a contempt for the predictable and lazy roll. Paul was intimately involved in their you couldn’t help but admire. The assistant legislative clerk pro- operations and success. He once commented that the ‘‘single ceeded to call the roll. In fact, just this afternoon, I spoke highest honor’’ paid to him was learn- Mr. DODD. I ask unanimous consent with a friend of mine. I serve on the ad- ing he was 19th on Nixon’s so-called that the order for the quorum call be visory board of the Hole in the Wall ‘‘enemies list’’ assembled by Charles rescinded. Camp in Ashford, CT, but a good friend Colson. The PRESIDING OFFICER. Without of mine is on the board of directors of He named the Hole in the Wall Gang objection, it is so ordered. that camp. He had flown from San camps after Butch Cassidy’s band of Mr. DODD. Are we in morning busi- Francisco to be back in Connecticut outlaws and offered cowboy hats to ness? today where people in the Hole in the children who had lost their hair be- The PRESIDING OFFICER. We are Wall Gang camp are gathering to re- cause of chemotherapy. postcloture on the motion to concur. member Paul Newman. They each got The first vat of Newman’s Own salad Mr. DODD. I ask unanimous consent up and talked about his intimate in- dressing was stirred with a canoe pad- to speak as in morning business. volvement with that camp. Believe me, dle, to give some idea of his sense of The PRESIDING OFFICER. Without as someone who has been involved on a humor. objection, it is so ordered. daily basis, he worked and cared about And one of the biographies he wrote PAUL NEWMAN the maintenance of that facility, as he for a local production read, ‘‘Paul New- Mr. DODD. Mr. President, I rise to did the ones on the other two con- man is probably best known for his celebrate the life of a man and a friend tinents I described. spectacularly successful food conglom- who passed away this past weekend, an Indeed, these examples remind us erate. In addition to giving the profits American icon to many Americans—in that every endeavor to which Paul to charity he also ran Frank Sinatra fact, not only to Americans but to peo- Newman committed himself over his 83 out of the spaghetti sauce business. On ple all over the world—for more than years shared one fundamental quality: the downside, the spaghetti sauce is half a century, a remarkable philan- They were the product of an enduring outgrossing his films.’’ thropist in his generosity, a terrific appreciation for the special, unique Let it never be said there wasn’t a husband, father to six children, a dare- place he was afforded in our society. sparkle in those famous blue eyes of devil both on the screen and off. You could not spend any time with Paul’s to the end. In words that have added poignancy Paul without noticing that he had re- In a career that required him to fab- at this moment, Paul Newman once markable life. ricate many a character and experi- said, ‘‘We are such spendthrifts with A wife and family that were not ence, Paul Newman’s rebellious yet our lives. The trick of living is to slip there simply to support him, but to playful quality always struck me as on and off the planet with the least push and prod him, to tease him, to completely genuine. fuss you can muster. I’m not running that wonderful kind of vitality we see It often masked and helped him pro- for sainthood. I just happen to think in vibrant families, a career that af- mote some very serious work. that in life we need to be a little like forded him opportunities and experi- A resident of Westport, CT he made the farmer, who puts back into the soil ences many of the characters he played enduring contributions to our State. what he takes out.’’ could not have imagined. Some will remember that he insisted The New York Times concluded its And Paul Newman knew it. on holding the first movie premiere in obituary of Paul Newman with those But as much as he recognized the New Haven history when ‘‘Butch words. But I would like them to begin good fortune behind his success, he also Cassidy and the Sundance Kid’’ made

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It is headed by of Paul’s magnitude brought to Con- ‘‘The Long, Hot Summer.’’ In 1982, in ‘‘The Susan Newman, the oldest of his five daugh- necticut, the difference he made to our Verdict,’’ he was a washed-up alcoholic law- ters. communities was far more lasting— yer who finds a chance to redeem himself in Mr. Newman’s three younger daughters are from helping to preserve open spaces a medical malpractice case. the children of his 50-year second marriage, such as the Trout Brook Valley and And in 2002, at 77, having lost none of his to the actress Joanne Woodward. Mr. New- renovate the Westport Historical Soci- charm, he was affably deadly as Tom man and Ms. Woodward both were cast—she ety and its Country Playhouse, to the Hanks’s gangster boss in ‘‘Road to Per- as an understudy—in the Broadway play dition.’’ It was his last onscreen role in a active role he played in government at ‘‘Picnic’’ in 1953. Starting with ‘‘The Long, major theatrical release. (He supplied the Hot Summer’’ in 1958, they co-starred in 10 the local, State, and Federal levels. voice of the veteran race car Doc in the movies, including ‘‘From the Terrace’’ (1960), Like all Americans at this hour, I Pixar animated film ‘‘Cars’’ in 2006.) based on a John O’Hara novel about a driven will miss him, a great guy and a good Few major American stars have chosen to executive and his unfaithful wife; ‘‘Harry & friend. As much as I will miss his play so many imperfect men. Son’’ (1984), which Mr. Newman also di- friendship and his performances on the As Hud Bannon in ‘‘Hud’’ (1963) Mr. New- rected, produced and helped write; and ‘‘Mr. television screen or at the movie the- man was a heel on the Texas range who & Mrs. Bridge’’ (1990), James Ivory’s version wanted the good life and was willing to sell ater, I will miss being reminded every of a pair of Evan S. Connell novels, in which diseased cattle to get it. The character was Mr. Newman and Ms. Woodward played a time that we saw him just how good intended to make the audience feel ‘‘loath- and decent a man he truly was. conservative Midwestern couple coping with ing and disgust,’’ Mr. Newman told a re- life’s changes. Our thoughts and prayers are, obvi- porter. Instead, he said, ‘‘we created a folk When good roles for Ms. Woodward dwin- ously, with Joanne, his lovely wife, his hero.’’ dled, Mr. Newman produced and directed daughters, and the rest of the Newman As the self-destructive convict in ‘‘Cool ‘‘Rachel, Rachel’’ for her in 1968. Nominated family. Hand Luke’’ (1967) Mr. Newman was too re- for the best-picture Oscar, the film, a deli- I wanted to thank them for sharing bellious to be broken by a brutal prison sys- cate story of a spinster schoolteacher ten- with us these many years a great guy. tem. As Butch Cassidy in ‘‘Butch Cassidy tatively hoping for love, brought Ms. Wood- and the Sundance Kid’’ (1969) he was the Mr. President, I have a wonderful ward her second of four best-actress Oscar most amiable and antic of bank robbers, nominations. (She won the award on her first obituary that was written in the New memorably paired with Robert Redford. And York Times. I ask unanimous consent nomination, for the 1957 film ‘‘The Three in ‘‘The Hustler’’ (1961) he was the small- Faces of Eve,’’ and was nominated again for that it be printed in the RECORD. time pool shark Fast Eddie, a role he recre- her roles in ‘‘Mr. & Mrs. Bridge’’ and the 1973 There being no objection, the mate- ated 25 years later, now as a well-heeled mid- movie ‘‘Summer Wishes, Winter Dreams.’’) rial was ordered to be printed in the dle-aged liquor salesman, in ‘‘The Color of Mr. Newman also directed his wife in ‘‘The RECORD, as follows: Money’’ (1986). That performance, alongside Effect of Gamma Rays on Man-in-the-Moon Tom Cruise, brought Mr. Newman his sole [From the New York Times, Sept. 28, 2008] Marigolds’’ (1972), ‘‘The Glass Menagerie’’ Academy Award, for best actor, after he had (1987) and the television movie ‘‘The Shadow PAUL NEWMAN, A MAGNETIC TITAN OF been nominated for that prize six times. In HOLLYWOOD, IS DEAD AT 83 Box’’ (1980). As a director his most ambitious all he received eight Oscar nominations for film was ‘‘Sometimes a Great Notion’’ (1971), (By Aljean Harmetz) best actor and one for best supporting actor, based on the Ken Kesey novel. Paul Newman, one of the last of the great in ‘‘Road to Perdition.’’ ‘‘Rachel, Rachel,’’ In an industry in which long marriages 20th-century movie stars, died Friday at his which he directed, was nominated for best might be defined as those that last beyond home in Westport, Conn. He was 83. picture. the first year and the first infidelity, Mr. The cause was cancer, said Jeff Sanderson ‘‘When a role is right for him, he’s peer- Newman and Ms. Woodward’s was striking of Chasen & Company, Mr. Newman’s pub- less,’’ the film critic Pauline Kael wrote in for its endurance. But they admitted that it licists. 1977. ‘‘Newman is most comfortable in a role was often turbulent. She loved opera and bal- If Marlon Brando and James Dean defined when it isn’t scaled heroically; even when he let. He liked playing practical jokes and rac- the defiant American male as a sullen rebel, plays a bastard, he’s not a big bastard—only ing cars. But as Mr. Newman told Playboy Paul Newman recreated him as a likable ren- a callow, selfish one, like Hud. He can play magazine, in an often-repeated quotation egade, a strikingly handsome figure of ani- what he’s not—a dumb lout. But you don’t about marital fidelity, ‘‘I have steak at mal high spirits and blue-eyed candor whose believe it when he plays someone perverse or home; why go out for hamburger?’’ magnetism was almost impossible to resist, vicious, and the older he gets and the better whether the character was Hud, Cool Hand you know him, the less you believe it. His BEGINNINGS IN CLEVELAND Luke or Butch Cassidy. likableness is infectious; nobody should ever Paul Leonard Newman was born on Jan. 26, He acted in more than 65 movies over more be asked not to like Paul Newman.’’ 1925, in Cleveland. His mother, the former than 50 years, drawing on a physical grace, But the movies and the occasional stage Teresa Fetzer, was a Roman Catholic who unassuming intelligence and good humor role were never enough for him. He became a turned to Christian Science. His father, Ar- that made it all seem effortless. Yet he was successful racecar driver, winning several thur, who was Jewish, owned a thriving also an ambitious, intellectual actor and a Sports Car Club of America national driving sporting goods store that enabled the family passionate student of his craft, and he titles. He even competed at Daytona in 1995 to settle in affluent Shaker Heights, Ohio, achieved what most of his peers find impos- as a 70th birthday present to himself. In 1982, where Paul and his older brother, Arthur, sible: remaining a major star into a craggy, as a lark, he decided to sell a salad dressing grew up. charismatic old age even as he redefined he had created and bottled for friends at Teresa Newman, an avid theatergoer, himself as more than Hollywood star. He Christmas. Thus was born the Newman’s steered her son toward acting as a child. In raced cars, opened summer camps for ailing Own brand, an enterprise he started with his high school, besides playing football, he children and became a nonprofit entre- friend A. E. Hotchner, the writer. More than acted in school plays, graduating in 1943. preneur with a line of foods that put his pic- 25 years later the brand has expanded to in- After less than a year at Ohio University at ture on supermarket shelves around the clude, among other foods, lemonade, pop- Athens, he joined the Navy Air Corps to be a world. corn, spaghetti sauce, pretzels, organic Fig pilot. When a test showed he was colorblind, Mr. Newman made his Hollywood debut in Newmans and wine. (His daughter Nell New- he was made an aircraft radio operator. the 1954 costume film ‘‘The Silver Chalice.’’ man runs the company’s organic arm.) All After the war Mr. Newman entered Kenyon Stardom arrived a year and a half later, its profits, of more than $200 million, have College in Ohio on an athletic scholarship. when he inherited from James Dean the role been donated to charity, the company says. He played football and acted in a dozen plays of the boxer Rocky Graziano in ‘‘Somebody Much of the money was used to create a before graduating in 1949. Arthur Newman, a Up There Likes Me.’’ Mr. Dean had been string of Hole in the Wall Gang Camps, strict and distant man, thought acting an killed in a car crash before the screenplay named for the outlaw gang in ‘‘Butch impractical occupation, but, perhaps per- was finished. Cassidy.’’ The camps provide free summer suaded by his wife, he agreed to support his It was a rapid rise for Mr. Newman, but recreation for children with cancer and other son for a year while Paul acted in small the- being taken seriously as an actor took serious illnesses. Mr. Newman was actively ater companies. longer. He was almost undone by his star involved in the project, even choosing cow- In May 1950 his father died, and Mr. New- power, his classic good looks and, most of boy hats as gear so that children who had man returned to Cleveland to run the sport- all, his brilliant blue eyes. ‘‘I picture my epi- lost their hair because of chemotherapy ing goods store. He brought with him a wife, taph,’’ he once said. ‘‘Here lies Paul New- could disguise their baldness. Several years Jacqueline Witte, an actress he had met in man, who died a failure because his eyes before the establishment of Newman’s Own, summer stock. But after 18 months Paul turned brown.’’ on Nov. 28, 1978, Scott Newman, the oldest of asked his brother to take over the business

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while he, his wife and their year-old son, DIRECTED BY MARTIN RITT returned to Broadway for the last time in Scott, headed for Yale University, where Mr. Many of his meaty performances during 2002, as the Stage Manager in a lucrative re- Newman intended to concentrate on direct- the early ’60s came in movies directed by vival of Thornton Wilder’s ‘‘Our Town.’’ The ing. Martin Ritt, who had been a teaching assist- performance was nominated for a Tony He left Yale in the summer of 1952, perhaps ant to Elia Kazan at the Actors Studio when Award, though critics tended to find it mod- because the money had run out and his wife Mr. Newman was a student. After directing est. When the play was broadcast on PBS in was pregnant again. But almost imme- ‘‘The Long, Hot Summer,’’ Mr. Ritt directed 2003, he won an Emmy. diately, the director Josh Logan and the Mr. Newman in ‘‘Paris Blues’’ (1961), a story This year he had planned to direct ‘‘Of playwright William Inge gave him a small of expatriate musicians; ‘‘Hemingway’s Ad- Mice and Men,’’ based on the John Steinbeck role in ‘‘Picnic,’’ a play that was to run 14 ventures of a Young Man’’ (1962); ‘‘Hud’’ novel, in October at the Westport Country months on Broadway. Soon he was playing (1963), which brought Mr. Newman a third Playhouse in Connecticut. But in May he an- the second male lead and understudying Oscar nomination; ‘‘The Outrage’’ (1964), nounced that he was stepping aside, citing Ralph Meeker as the sexy drifter who roils with Mr. Newman as the bandit in a western his health. the women in a Kansas town. Mr. Newman based on Akira Kurosawa’s ‘‘Rashomon’’; and Mr. Newman’s last screen credit was as the and Ms. Woodward were attracted to each ‘‘Hombre’’ (1967), in which Mr. Newman narrator of Bill Haney’s documentary ‘‘The other in rehearsals of ‘‘Picnic.’’ But he was a played a white man, reared by Indians, Price of Sugar,’’ released this year. By then married man, and Ms. Woodward has insisted struggling to live in a white world. he had all but announced that he was that they spent the next several years run- Among his other important films were through with acting. ning away from each other. ‘‘I’m not able to work anymore as an actor In the early 1950s roles in live television Otto Preminger’s ‘‘Exodus’’ (1960), Alfred Hitchcock’s ‘‘Torn Curtain’’ (1966) and Jack at the level I would want to,’’ Mr. Newman came easily to both of them. Mr. Newman said last year on the ABC program ‘‘Good starred in segments of ‘‘You Are There,’’ Smight’s ‘‘Harper’’ (1966), in which he played Ross Macdonald’s private detective Lew Ar- Morning America.’’ ‘‘You start to lose your ‘‘Goodyear Television Playhouse’’ and other memory, your confidence, your invention. So shows. cher. In 1968—after he was cast as an ice-cold that’s pretty much a closed book for me.’’ He was also accepted as a student at the But he remained fulfilled by his charitable racecar driver in ‘‘Winning,’’ with Ms. Wood- Actors Studio in New York, where he took work, saying it was his greatest legacy, par- ward playing his frustrated wife—Mr. New- lessons alongside James Dean, Geraldine ticularly in giving ailing children a camp at man was sent to a racing school. In midlife Page, Marlon Brando and, eventually, Ms. which to play. racing became his obsession. A Web site— Woodward. ‘‘We are such spendthrifts with our lives,’’ Then Hollywood knocked. In 1954 Warner newman-haas.com—details his racing career, Mr. Newman once told a reporter. ‘‘The trick Brothers offered Mr. Newman $1,000 a week including his first race in 1972; his first pro- of living is to slip on and off the planet with to star in ‘‘The Silver Chalice’’ as the Greek fessional victory, in 1982; and his co-owner- the least fuss you can muster. I’m not run- slave who creates the silver cup used at the ship of the Newman/Haas Indy racing team, ning for sainthood. I just happen to think Last Supper. Mr. Newman, who rarely which won eight series championships. that in life we need to be a little like the watched his own films, once gave out pots, A politically active liberal Democrat, Mr. farmer, who puts back into the soil what he wooden spoons and whistles to a roomful of Newman was a Eugene McCarthy delegate to takes out.’’ guests and forced them to sit through ‘‘The the 1968 Democratic convention and ap- Silver Chalice,’’ which he called the worst pointed by President Jimmy Carter to a Mr. DODD. I suggest the absence of a movie ever made. His antidote for that early United Nations General Assembly session on quorum. Hollywood experience was to hurry back to disarmament. He expressed pride at being on The PRESIDING OFFICER. The Broadway. In Joseph Hayes’s play ‘‘The Des- President Richard M. Nixon’s enemies list. clerk will call the roll. perate Hours,’’ he starred as an escaped con- When Mr. Newman turned 50, he settled The legislative clerk proceeded to vict who holds a family hostage. The play into a new career as a character actor, play- call the roll. was a hit, and during its run, Jacqueline ing the title role—‘‘with just the right blend Ms. COLLINS. Mr. President, I ask Newman gave birth to their third child. of craftiness and stupidity,’’ Janet Maslin On his nights off Mr. Newman acted on live wrote in The New York Times—of Robert unanimous consent that the order for television. In one production he had the title Altman’s ‘‘Buffalo Bill and the Indians’’ the quorum call be rescinded. role in ‘‘The Death of Billy the Kid,’’ a psy- (1976); an unscrupulous hockey coach in The PRESIDING OFFICER. Without chological study of the outlaw written by George Roy Hill’s ‘‘Slap Shot’’ (1977); and the objection, it is so ordered. Gore Vidal and directed by Robert Mulligan disintegrating lawyer in Sidney Lumet’s Ms. COLLINS. Mr. President, could for ‘‘Philco Playhouse’’; in another, an adap- ‘‘Verdict.’’ the Chair inform us whether there is an tation of Ernest Hemingway’s short story Most of Mr. Newman’s films were commer- order for proceeding? It was my under- ‘‘The Battler,’’ he took over the lead role cial hits, probably none more so than ‘‘The after James Dean, who had been scheduled to standing we were alternating, going Sting’’ (1973), in which he teamed with Mr. back and forth. I would inform the Sen- star, was killed on Sept. 30, 1955. Mr. Penn, Redford again to play a couple of con men, who directed ‘‘The Battler,’’ was later sure and ‘‘The Towering Inferno’’ (1974), in which ators on the floor I have a 5-minute that Mr. Newman’s performance in that he played an architect in an all-star cast tribute to Senator WARNER. But I am drama, as a disfigured prizefighter, won him that included Steve McQueen and Faye unaware of what the order is. the lead role in ‘‘Somebody Up There Likes Dunaway. The PRESIDING OFFICER. There is Me,’’ again replacing Dean. When Mr. Penn After his fifth best-actor Oscar nomina- no order or agreement. We are oper- adapted the Billy the Kid teleplay for his tion, for his portrait of an innocent man dis- first Hollywood film, ‘‘The Left Handed ating postcloture under the motion. credited by the press in Sydney Pollack’s Gun,’’ in 1958, he again cast Mr. Newman in Mr. MENENDEZ. Mr. President, if I ‘‘Absence of Malice’’ (1981), and his sixth a the lead. may. Even so, Mr. Newman was saddled for years year later, for ‘‘The Verdict,’’ the Academy The PRESIDING OFFICER. The Sen- of Motion Picture Arts and Sciences in 1986 with an image of being a ‘‘pretty boy’’ light- ator from New Jersey. weight. gave Mr. Newman the consolation prize of an honorary award. In a videotaped acceptance Mr. MENENDEZ. Mr. President, I ‘‘Paul suffered a little bit from being so had intended to speak, but with an un- handsome—people doubted just how well he speech he said, ‘‘I am especially grateful that could act,’’ Mr. Penn told the authors of the this did not come wrapped in a gift certifi- derstanding that is the presentation by 1988 book ‘‘Paul and Joanne.’’ By 1957 Mr. cate to Forest Lawn.’’ the Senator from Maine, I ask unani- Newman and Ms. Woodward were discreetly His best-actor Oscar, for ‘‘The Color of mous consent that after the Senator living together in Hollywood; his wife had Money,’’ came the next year, and at the 1994 from Maine is recognized by the Chair, initially refused to give him a divorce. He Oscars ceremony he received the Jean I would be recognized following that. later admitted that his drinking was out of Hersholt Humanitarian Award. The year The PRESIDING OFFICER. Without after that he earned his eighth nomination control during this period. objection, it is so ordered. With his divorce granted, Mr. Newman and as best actor, for his curmudgeonly construc- Ms. Woodward were married on Jan. 29, 1958, tion worker trying to come to terms with his The Senator from Maine. and went on to rear their three daughters far failures in ‘‘Nobody’s Fool’’ (1994). In 2003 he Ms. COLLINS. Thank you, Mr. Presi- from Hollywood, in a farmhouse on 15 acres was nominated as best supporting actor for dent. And I thank the Senator from in Westport, Conn. his work in ‘‘Road to Perdition.’’ And in 2006 New Jersey. That same year Mr. Newman played Brick, he took home both a Golden Globe and an SENATOR JOHN WARNER the reluctant husband of Maggie the Cat, in Emmy for playing another rough-hewn old- Mr. President, throughout our Na- the film version of Tennessee Williams’s timer, this one in the HBO mini-series ‘‘Em- tion’s history, the Commonwealth of ‘‘Cat on a Hot Tin Roof,’’ earning his first pire Falls.’’ Academy Award nomination, for best actor. Besides Ms. Woodward and his daughters Virginia has provided leaders of un- In 1961, with ‘‘The Hustler,’’ he earned his Susan and Nell, he is survived by three other common courage, dedication, and vi- second best-actor Oscar nomination. He had daughters, Stephanie, Melissa and Clea; two sion. The names that are revered in the become more than a matinee idol. grandchildren; and his brother. Mr. Newman Old Dominion are honored across

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00034 Fmt 4637 Sfmt 0634 E:\CR\FM\A30SE6.024 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10149 America: Washington, Jefferson, Mon- Senator WARNER’s career has been lade, the fighting lady from Maine. We roe, Mason, and Henry, to name but a defined by his involvement in some of have watched you under the toughest few. the most pressing issues of our time. of circumstances. One time I remember Today, as the 110th Congress draws to But he has also worked hard on those working with you and your tenacity a close, we say farewell to another seemingly smaller issues that make a was fierce, and you really sort of great Virginian, a great patriot, public big difference in people’s lives. As just turned back a lot of my thoughts servant, and distinguished colleague one example, he joined me in authoring which I thought were so important. whose name history will add to that the tax deduction for teachers who But it worked out in the end. You pre- honor roll: the name of our friend and spend their own money on classroom vailed and that was the development of colleague, Senator JOHN WARNER. supplies. Whether in uniform or in our the legislation which reconstructed, re- Senator WARNER’s career mirrors classrooms, JOHN WARNER believes formulated so much of our intelligence those of the Founding Fathers in many those who serve have earned our grati- community. That was truly a master- ways. During World War II, when free- tude and our support. ful accomplishment on your part. dom was under attack, he enlisted in Also, we remember JOHN WARNER’s Again, the reason I am a bit breath- the U.S. Navy at just 17 years of age. pivotal role at a time when our institu- less is when I first came to the Senate, Following the war, he rejoined civil- tion of the Senate was at a threshold of these 30 years ago, there were not any ian life, earned a college degree, and chaos and dysfunction. I refer to his ladies in the Senate at that time. We entered law school. At the outbreak of leadership in the so-called Gang of 14, were joined in my class by Nancy the Korean war, he suspended his stud- which worked out a compromise on ju- Kassebaum from Kansas, a wonderful ies to serve his Nation once again, this dicial nominations that helped save lady. Believe me, she very quickly es- time as an officer in the U.S. Marine this institution from what would have tablished her own stature. We all ad- Corps. otherwise been a very bleak time. After he returned from Korea, he mired her tremendously as a very Senator WARNER has continued and completed his law degree but remained strong Senator, which she was through- enhanced the best traditions of this an officer in the Reserves, always out her career. But from that small be- Nation and of the Commonwealth of ready to answer the call of his Nation. ginning commenced the trans- Virginia in countless ways. One that formation of the Senate in many Senator JOHN WARNER truly exempli- must be mentioned, before I conclude fies the American tradition of the cit- ways—from the one lady—she certainly my remarks, is his unfailing civility izen soldier. was a fighting lady, too—to where and courtesy toward his Senate col- As a civilian, JOHN WARNER contin- today we have many. As a matter of ued to serve: as an assistant U.S. attor- leagues. Regardless of the significance fact, we do not even count them any- ney, as Under Secretary of the Navy, of the issue or the intensity of the de- more because they just have gotten and as Secretary of the Navy. During bate or the strength of his colleagues’ into the full fabric of the Senate and his 5 years in the Navy’s Secretariat, feelings, Senator WARNER has always everybody is just totally unconscious he demonstrated another American tempered staunch advocacy for his con- to that except, I guess, people like my- tradition: a commitment to both mili- victions with the utmost respect for self, with a wandering eye, constantly tary strength and diplomacy. the convictions of others. taking a look at the dress one day and It is fitting that one so steeped in the On a personal note, he has been a compliment my dear friends. best of America’s traditions was chosen wonderful friend and mentor to me, the But on a serious note, we have had a by the President, in 1976, to coordinate Senator from Maine. I know all Ameri- marvelous, strong friendship and work- our Nation’s bicentennial celebrations cans join me today in thanking Sen- ing relationship, and I shall miss you in all 50 States and in 22 foreign coun- ator JOHN WARNER for his dedicated dearly, as I will this institution. But I tries. decades of service to his country, do leave with the thought that you are It was in 1978 that the wise citizens of whether in times of peace or war, and one of the great strengths of this insti- Virginia sent JOHN WARNER to the U.S. in wishing him all the best in the years tution which will be called upon, as it Senate. For 30 years, the people of to come. is in this hour. The Nation calls upon America have been grateful. The hall- Thank you, Mr. President. this body to save it. mark of Senator WARNER’s service in The PRESIDING OFFICER. The Sen- I was looking last night, as I was try- the Senate has been his absolute and ator from Virginia. ing to drift off to a rest, at the famous unwavering commitment to a strong Mr. WARNER. Mr. President, it is poem that was written, ‘‘O Ship Of national defense. It has been my honor sometimes somewhat breathless to be State.’’ Do you remember that poem? to serve with him on two committees seated on this Senate floor knowing And America today is looking to its that bear directly upon that commit- that just maybe 48 hours remain of my Congress like few times in history. ‘‘O ment—the Senate Armed Services career in the Senate. I shall remain in Ship Of State’’—I have that poem on Committee and the Senate Homeland office through early January, but I tell my desk. Security Committee. you, it takes me a few minutes to as- At this time, I ask unanimous con- As the chairman and ranking mem- semble my thoughts. But in your case, sent to have that poem printed in the ber of the Armed Services Committee, I would say: Look at the many things RECORD. Senator WARNER has consistently we have worked on together. There being no objection, the mate- upheld the pledge he took to defend This fine Senator is so proud of the rial was ordered to be printed in the America when he enlisted in the Navy Naval installations in her State. We RECORD, as follows: 63 years ago. His support for our men visited the shipyard together, indeed O SHIP OF STATE and women in uniform, for their fami- the facilities at Portsmouth. The ships lies, and for our veterans is unwaver- are made there. The ships are berthed (By Henry Wadsworth Longfellow) ing. He has been an effective and there. It has been home to the U.S. Thou, too, sail on, O Ship of State! strong advocate for modernizing our Navy, I imagine, from the earliest days Sail on, O Union, strong and great! Humanity with all its fears, military to meet the challenges of the of the formation of our Colonies and With all the hopes of future years, 21st century. the first of the ships we had. Is hanging breathless on thy fate! Senator WARNER also understands I hope what I am about to say is fully We know what Master laid thy keel, that America’s future does not just de- understood. But those of us—I have had What Workmen wrought thy ribs of steel, pend upon defending our Nation some modest career in the Navy in my Who made each mast, and sail, and rope, against attack. I am proud to have lifetime—but we always refer to the What anvils rang, what hammers beat, worked with him on climate change ship in an affectionate way, as if it In what a forge and what a heat legislation, and his leadership on the were a female. Indeed, it does protect Were shaped the anchors of thy hope! America’s Climate Security Act with Fear not each sudden sound and shock, the sailors at sea with its steadiness ‘Tis of the wave and not the rock; our friend, Senator JOE LIEBERMAN, and its seaworthiness, and we often ‘Tis but the flapping of the sail, demonstrates his commitment to pro- refer to the ships as the fighting lady. And not a rent made by the gale! tecting our environment and to secur- I say to the Senator, I would hope In spite of rock and tempest’s roar, ing our energy future. that you would accept that as an acco- In spite of false lights on the shore,

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00035 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.063 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10150 CONGRESSIONAL RECORD — SENATE September 30, 2008 Sail on, nor fear to breast the sea! broader economy, and 61 percent said number of Americans that is a foreign Our hearts, our hopes, are all with thee. there was insufficient assistance for language—but not about what they ac- Our hearts, our hopes, our prayers, our tears, the general public. tually mean in terms of mortgages, Our faith triumphant o’er our fears, I think it is important, as we try to credit card bills, and week-to-week Are all with thee,—are all with thee! move forward in this institution and budgets of our families. Those are Mr. WARNER. I see the Senator is show some leadership, to keep those re- items which they clearly understand desiring to speak. alities in mind—of what our constitu- and speak about around the kitchen But those two things remind me that ents back at home are saying. They table as they face challenges. this great ship of State will sail on and recognize there is a crisis. They also I think some of us have been left you will be at the helm. I wish you the recognize there is a challenge to them with a mistaken impression that this best. in the mainstream economy, and they crisis is just about Wall Street. I am Ms. COLLINS. Mr. President, I thank felt as though that specific package worried people on every street in this the Senator from Virginia for his very didn’t do enough for them. So many country, who are being powerfully af- kind and thoughtful comments. At a Americans—I would say the great ma- fected by this crisis, are being forgot- time when we are attempting to pay jority of Americans—who are meeting ten. tribute to him, he, of course, is gra- their obligations with tremendous Now, the heart of this crisis is the cious to others. stress and challenges, who meet their housing market. So many houses are I thank the Senator from New Jersey monthly mortgage payments—have for going into foreclosure that now it is for his tolerance on the extra time. years and have continued to do so— hard for anybody to get a loan of any The PRESIDING OFFICER. Under what they reasonably want to know is kind, to buy a home, to invest in a the previous order, the Senator from what do they get out of this? business or have that business grow, to New Jersey is recognized. As my home State newspaper, the get a college education. There is a Mr. MENENDEZ. I ask unanimous Star Ledger, said: Why, they continue credit freeze so businesses can’t grow. consent to speak as in morning busi- to ask, should taxpayers have to sub- They can’t pay expenses. They can’t ness. sidize the stupidity of people who were look to the future. It is becoming a fi- The PRESIDING OFFICER. Without either greedy or maybe failed to do nancial wildfire, ravishing our econ- objection, it is so ordered. their homework? They go on to say in omy and burning away at the fabric of Mr. MENENDEZ. Mr. President, I the editorial the real problem in Wash- our communities. The crisis stretches was happy to yield to the distinguished ington is that no one has made a co- across every city in, for example, my Senator from Maine on her recognition gent argument for why, in essence— home State, but it is replicated across of Senator WARNER. I certainly join in this is paraphrasing—for why, in es- the landscape of the country, North her comments about Senator WARNER, sence, we need to have a response and and South and East and West. as we did recently when the Senator what does it mean to those who are not In Newark, there is a single mother appeared before the Senate Foreign Re- investment bankers or whose homes who has lost her job and now holds lations Committee and recognized his aren’t in foreclosure. down three different part-time jobs to tremendous service to this institution I think the economists generally make up for it, while her kids are at and to the country. I often say, as I agree the Nation’s economy is at a se- home by themselves. In Clifton, there said to him before at the hearing, that, rious risk of the flow of credit threat- is a couple who work two jobs and in fact, I am privileged I came to the ening to freeze beyond where it is al- bring in $4,000 a month together, but Senate at a time when I got to serve ready. We see the interest rates at when the mortgage payment, the car with JOHN WARNER and to see some of which banks lend to each other rising payment, the electricity and gas, util- the finest traditions of service in this each and every day, suggesting that ity bills come in, and the grocery bills country. I appreciate his tremendous lenders are hoarding cash. I think that and the credit card bills come in every service, not just to the people of Vir- gets to the question of what the edi- month, they worry they can’t make ginia but to the people of this Nation. torials have said in my home State and ends meet. In another part of the Mr. WARNER. Mr. President, I thank others as well: So then what is the case State, there is a builder who is finding the gracious Senator from New Jersey. to be made? it almost impossible to get funding to I appreciate those remarks. Although Well, with banks leery of lending to keep his business going. Banks want it has been short-lived, we have had a each other, credit markets contract, bigger deposits, bigger monthly pay- good, strong working relationship; not making it difficult for businesses to ob- ments, and stricter payment deadlines. always on the same side on several tain loans for expansion, to start new Today, I wish to focus on what the issues, but that is what democracy is ventures or even to cover bills until credit crunch means for every New all about. I thank the Senator. unanticipated revenue comes in; car Jerseyan and American—the jobs, the Mr. MENENDEZ. I thank the distin- loans dry up, causing further suffering businesses or anyone who needs a loan guished Senator from Virginia. among the already ailing automakers; to drive a car or go to college—and THE ECONOMY credit card interest rates rise, and all what it means for those who are closer Mr. President, I rise to talk about that forces, in essence, markets to shed to the twilight of their life and are the financial crisis our country is fac- jobs, creating more unemployment. thinking about their retirement and ing. I think to classify it as such is an Overall, this bleak fiscal picture causes what that retirement has meant to understanding most Americans have. It consumers to scale back on spending, them in terms of what is taking place is not an overstatement. The reality and then the little shop on Main Street and what will continue to take place if shows that today in a Washington Post closes as well. That is a broad brush. I we see no action and how they may ABC News poll, most Americans see would like to get to some of the spe- very well have to extend the time in the current financial situation as a cri- cifics of how that affects us. which they thought they could retire. sis, and there is overwhelming concern When we have watched the news or Let’s talk about businesses, espe- that the failure of the House of Rep- picked up a newspaper over the last few cially small businesses, because they resentatives to pass the economic re- months, we see top stories about the are the ones that create 75 percent of covery package may very well deepen problems of big institutions: Bear all the jobs in America. We have al- that problem. Stearns and Washington Mutual and ways been an entrepreneurial people. I think it is important to note the Wachovia. It has been easy to see what We have always had the ideas and are poll also revealed significant public dire straits our financial system is in, willing to take intelligent risks to concern with the bill that Congress re- but what is not making the headlines start a business, and those businesses jected yesterday. Few voters have said is what this economic crisis means for are the ones that create jobs. They the package did enough to protect ordi- people in our hometowns. rent stores. They buy buildings. Those nary Americans and nearly half said it We have heard a lot about mortgage- people who are employed ultimately did not go far enough to shore up the backed securities, credit default swaps, are gainfully employed in a way that Nation’s economy. Half said the failed and overnight lending rates. To be very they have income to spend in other plan did not do enough to help the honest with my colleagues, to a large businesses for goods and services they

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00036 Fmt 4637 Sfmt 0634 E:\CR\FM\A30SE6.028 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10151 need, which employ other people, and, they needed to get those supplies there, uct so that ultimately it goes to that of course, these businesses pay reve- to then extend credit to him so he store where ultimately consumers seek nues, to their local, State, and Federal would be able to go ahead and do the to purchase, in fact, they cannot get entities. So we can see the cycle of how job and then get paid and then pay for the money to keep the product on the important they are. his supplies and the chain goes on. shelves, and, of course, the cycle is Now, if you want to start a business, When, in fact, that chain is broken, clear. this is one of the worst climates in our there is a consequence, and the con- Look at farmers. New Jersey is called history to do so. Loans aren’t avail- sequence of that is people lose their the Garden State. I often tell my able, even to people with good credit, employment. There is a ripple effect. It friends you have to get off the turnpike and especially not to entrepreneurs is not only they who lose their employ- if you want to know what the Garden who are getting started. So that dream ment but all the resources they had in State really looks like. We have spin- of Americans having business owner- making the purchase of goods and serv- ach. We are in the top two or three in ship is now miles further away. But the ices that ultimately hired other people spinach. We have a whole host of spe- credit crunch hurts small businesses. and who had families and who had ciality products—peach orchards, cran- There are those of us who every day needs and who made expenditures. So berry bogs, blueberries, to mention are feeling restricted in our spending we see the consequences of that. some. and frugal when we open our check- In the construction field, for exam- For farmers, crop planting depends books. That means we aren’t going, for ple, we have a set of circumstances greatly on the amount of available example, to see this lady at the where, in fact, you have contractors credit. Farmers cannot plant next counter. She is ultimately at the other who get a job in southern New Jersey, year’s crop if they cannot get this end of the business cycle. We are re- but he doesn’t get paid for that job up- year’s loans. So from cranberries to stricted in our spending. This is a re- front. blueberries to all of these other prod- ality. It is a reality we feel in our lives. He makes a bid. It might be a public ucts, everything you buy at the gro- We see what is happening in the coun- contract or it might be a private con- cery store is going to be more expen- try. We may already have faced some struction project. He doesn’t get paid sive. Some food products may wind up pressures in our own economic cir- up front. So that contractor needs in very short supply. They are going to cumstances in a personal family way, credit. be more expensive because even if you so we hold back. We say: Let’s see what What does he need the credit for? He have a great credit history—as the will happen. How do I decide? So we re- needs the credit for the supplies to cranberry bogs in the pinelands of New strict our spending and we are frugal bring to the job to do the work. He Jersey—if you have a good credit his- when we open our checkbooks. That is needs credit for floating so that he can tory but the credit crunch creates a probably in many ways smart, but keep his payroll going for the people he higher and higher standard for what there is also a consequence. That has to pay up front every week so they you will borrow and under what terms means a lot of us aren’t going out to can do the work that creates the home and conditions you will borrow, that is eat as much, which means the waitress or the building or the business struc- going to be reflected ultimately in the isn’t getting the tips she depended on ture that ultimately will pay them, end cost of the product we consume on to bring home for her family and the and they will repay their credit from the dining room table. We have a challenge that is direct for challenges her family has, and owners their suppliers and then ultimately be farmers, for family farmers, and for all of that business aren’t getting the able to make a profit. of us as consumers as we put fruits and checks they depend on, which means Again, all of those construction ma- vegetables on the table for our families restaurants have to either contract terials that are provided to that con- to consume, and that has a direct con- dramatically the size of their work- tractor, those people, those entities sequence to us. force, or, in the acute set of cir- have credit as it relates to those who Credit cards. As loans become more cumstances, they have to close. It provide the supplies that they sell to and more difficult and expensive to means the local retailer—perhaps from contractors. So there is, again, an in- get, people will continue to increase whom we buy the treat we have once a tricate balance of all of these interests their usage of credit cards. I hope if week at the end of a long week or a gift coming together in a way that affects people have some disposable money we are buying for a family member or the person wearing a hard hat on the that they will pay down their credit a friend’s birthday—will see depleting front lines of building the infrastruc- card debts. That is a good thing to be sales. As their cash input decreases, ture, the homes, the churches, and the doing in these times and not be looking they have to decrease their output, and businesses of our community. at spending a lot of interest on credit they will be giving pink slips to their Again, the reality: When a credit card debt. This is a good time, if you employees. It means we see more of freeze takes place, the pink slips start have the resources, to pay down credit this sign that says ‘‘store closed’’ for getting printed, and the workforce is card debt. business. It means the local lunch spot suddenly unemployed. Now the con- I know so many families who tell me or the barber will not have the same tractors cannot pay their suppliers, so they are using that credit card as they lunchtime rush or the same Saturday their cash inventory drops and their have transitions in jobs, as they meet appointments. While we certainly can ability to issue payroll at the end of some of their challenges. We see credit all live without a haircut as frequently the week is also jeopardized, and it card interest rates which are already or without eating our favorite sand- pushes more families into the ranks of rising, and they will continue to esca- wich, those shop owners depend on our the unemployed. It is a vicious cycle late as banks look for ways to recoup steady business. They depend on that occurring far away from Wall Street, the losses resulting from those defaults appointment to make ends meet. When, but it is affecting our families, our that are taking place. in fact, that doesn’t happen, there is a neighbors, our friends on Main Street. This is an issue I raised before about consequence to them and those who The credit crunch changes our ability credit card reform. We need to pursue work there and the families of all who to shop. Every business to some degree reform in several sectors of our finan- are situated there. depends on this credit process for what cial industry. We already have credit Small businesses don’t have access to they sell and the supplies they get. We card debt in this country that collec- capital because banks have severely often use our credit cards in the proc- tively equals $850 billion. Now we are cut back in lending. So, for example, ess of purchasing those goods. But seeing the consequences of those who when my dear father was alive, he was when manufacturers cannot get loans find themselves using their credit cards an itinerant carpenter, and he used to that they need to keep the manufac- in this economy who ultimately are go to the lumber shop where he had a turing process going to create the prod- facing higher interest rates and, should little bit of credit to get some supplies ucts that ultimately get consumed at a they be somewhat late, higher fees for as he did the business—the work for store where the store takes credit and those payments for being slightly late. the people who hired him—but that purchases it from them but gets maybe Then we will see a ripple effect of those lumber store obviously had to get their 30 days, 60 days the manufacturer fees pushing people beyond their lim- suppliers and the credit that, in fact, needs to continue to produce the prod- its, and when they get pushed beyond

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00037 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.065 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10152 CONGRESSIONAL RECORD — SENATE September 30, 2008 their limits artificially, they are in de- will be some of the highest unemploy- think they maybe didn’t make the fault. When they are in that default, ment we have seen in well over a gen- right decisions, maybe they are part of they find themselves with a whole host eration. that 6.1 percent unemployment who of new charges that continue to push In addition to burdening young peo- lost their jobs and now find themselves up their debt. We need to do something ple who are just about to launch their in a set of circumstances where they about this situation. But it is part of careers, failing to act will exacerbate cannot meet the mortgage payment, the reality of our present existence the already difficult situation facing maybe some should have known better. that, in fact, we see this driving up as those who are winding down their ca- But regardless of the circumstances, we speak. That is a consequence to the reers and looking forward to retire- whether they lost their job, don’t have average consumer in this country. ment. We saw yesterday that the Dow the income stream they had before to I had a teacher in New Jersey who re- lost the equivalent of $1.2 trillion in pay their mortgage, or whether it is be- cently showed how hard it is getting value. That is not just about wealthy cause they were led to bad mortgages— for anyone to get a car loan. This people who have money to make in- I have people come into my Senate of- teacher is not living within the com- vestments in stocks. That is about fices in New Jersey, and when we look munity in which she teaches. She has those who have 401(k)s, that is about at their information, we see they could to drive there. It is not a location pension plans that make investments have been very responsible borrowers where public transit is easily available. on behalf of their pensioners, that is at fixed rates, but they were led to This teacher in New Jersey, who has about a broad breadth of all of us. mortgage instruments that, yes, were driven to work every day for the past Failing to act exacerbates the al- lower at the beginning but ultimately few years, has to buy a new car because ready difficult situation facing those ballooned later. It is a crime that those hers is broken down. But the auto lend- who are winding down their careers mortgage lenders drove them to those ing market essentially has been closed and looking forward to retirement. products, knowing they could have to buyers with credit scores of less When I looked before, the Dow was been a very responsible borrower and than 720. going back up, but the problem is that had the ability to pay a long-term loan By the way, 720 is an excellent score. we see no sense of stability. Losses are at a fixed rate, they led them to those Yet finding the resources for an auto real. It is not just the point on the products and had them choose a mort- loan, not having the money to put it Dow; it is the overall S&P performance gage product where now they find all out to purchase a car up front in as well. These people will see their dec- themselves losing their home. cash—they need the opportunity to get ades of savings continue to shrink Neighborhoods with foreclosures access to that auto loan, and even with smaller and smaller as their IRAs, bring down home values for everyone scores of 720 or less, they are finding it 401(k)s, and mutual funds drop in in that community. I looked at the increasingly difficult to do so. Even if value. Center for Responsible Lending, and I they have some savings and just want a Yesterday’s stock market alone ac- looked at what they are saying about modest new car to take them where counted for approximately a $1.2 tril- some of our challenges. In New Jersey they need to go to work, unless they lion loss. Without action, those losses alone, there are approximately 53,000 have excellent credit, they quite sim- will only get worse. homes, and rising, in foreclosure. By ply are not going to get a loan to get I know that a lot of people do not the way, we are not the worst State in that car. want to look at their 401(k)s right now, the Nation in this regard but by way of If we don’t act soon, we are going to but everyone is going to have to look example. What does that mean? That see students who will have trouble pay- at them eventually. Those on the cusp affects neighborhoods and other homes ing for their education. Parents trying of retirement cannot afford to wait and becomes a multiplier effect of to save for their children’s college edu- several years for the market to sta- enormous proportions. cation will see their investments bilize on its own. They will be forced to When a home forecloses in your shrink, along with the stock market. stay in the job market long after they neighborhood, the overall value of College endowments that invest in the planned on retiring. That is a cruel re- homes in that neighborhood falls. In stock market are also getting hit hard, ality for people who have worked a life- New Jersey, that is the equivalent of which makes it harder for them to pro- time to help create families, build com- about an $11,000 loss on your home. vide financial assistance to students. munities, and now find themselves in Having done absolutely nothing, pay- If students need loans—and I know in this challenge as they go into those ing your mortgage, being responsible, my own life, someone who grew up poor years in which they thought their hard you still lost $11,000 on your home be- in a tenement, the first in my family work would pay off. These hard-work- cause of foreclosures taking place in to go to college, if it wasn’t for what ing Americans, who worked hard their your neighborhood. When there is a we have done in the Federal Govern- whole lives, need us to act in a strong multiplicity of those foreclosures tak- ment through Pell grants and Perkins and sensible way to ensure that 30 ing place in your neighborhood, it loans and also through other loans, I years of savings do not get largely drives the value down even more. would not have been the first in my eliminated within 30 days. That has a consequence too. When family to go to college and then law Let’s talk about mortgages, which is values are driven down, as a former school. at the heart of what our challenges are mayor I can tell you that means the Students who manage to find loans and the foreclosures that are mount- ratable base begins to shrink. When the will carry a higher interest rate than ing. ratable base of all values begins to they would otherwise, leaving our The credit crunch affects your mort- shrink, that is less taxes being paid. graduates with crushing debt. We are gage even if you pay it on time because When that happens, there are two deci- already seeing so many of our children if you have a mortgage, whether you sions to make. Either you cut serv- graduate with enormous debt. They pay it on time or not, you are going to ices—police, fire, education—or you graduate with a diploma in one hand find it difficult, if not impossible, to have to raise taxes collectively. Of and enormous debt in the other one. refinance your mortgage or to take out course, that has a spiraling effect in That is only going to rise under the a second mortgage if you need it for and of itself. current circumstances—crushing debt the college education of your children This foreclosure crisis is very much a before they even enter the job market. or if, God forbid, there is an illness in reality not only for those who are los- When they do leave school and start your family that isn’t covered by the ing and/or have lost their homes, but it to look for a job, at this point, these insurance you have, if you have insur- is very real for those of us who still graduates in the next year or two are ance, or if you are underinsured. You have a home because our home simply going to be greeted by one of the worst are going to find yourself with higher isn’t worth as much as we paid for it. job markets in 5 years. We are already rates and different lending conditions. The credit crunch makes it harder to at 6.1 percent unemployment and ris- Your neighbors who are struggling get financing to go buy a home pres- ing. We will see inaction only create a and who are walking away from their ently. We have a story of someone who, greater percentage of unemployment homes because there is a padlock on totally responsible, good job, buys a than we have experienced, and that the front door—their loss; you may condo and gets preapproved for their

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00038 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.066 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10153 loan and they sign a contract. But a Once we saw centuries-old financial a $238,000 mortgage. The homeowner week before the closing, they are told institutions fail, once we saw our cred- was in foreclosure crisis. They offered the market in which they have pur- it markets freeze up and Americans’ to give $220,000 of the $238,000 through chased is declining and now they have savings begin to disappear, the ques- the community development corpora- to come up with twice the downpay- tion wasn’t do we have to act, the ques- tion. The bank said no. So they are ment they had originally been ap- tion was how to craft a plan that would getting zero. Instead of getting zero, proved for. So that may mean that work and would give maximum protec- they were going to get $220,000 of the home doesn’t get sold, that person has tion to the taxpayers who might fund $238,000—an $18,000 difference—and they to make other choices or, if they have it. said no. So the community develop- any assets to meet the greater down- Now, I believe there is something ment corporation went to the fore- payment, they now have to make other that wasn’t in the plan but that should closure sale and bid the $238,000, the choices in their lives as well. So the be included, and I appreciate Senator full amount of the mortgage. What did house sits on the market continuing to OBAMA’s suggestion of it today, where the bank do? They bid it up to $240,000. lose value and affects the values of all he proposed lifting the current limit on So they preferred to have this person other homes in that neighborhood. the Federal Deposit Insurance from its go in foreclosure. They bid more than That has a consequence for all of us. current limit of $100,000 to $250,000. He they were even getting on the mort- I have tried to outline what some of said he believed it would be: gage, even though they could have been the challenges are. Let me talk about A step that would boost small businesses, made whole, and at the end of the day what I hope we will consider moving make our banking system more secure, and they had a mortgage that was nonper- toward. As bad as the situation has help restore public confidence in our finan- forming. So we need to do a lot better, gotten, with hundreds of thousands of cial system. a lot better at what is the core of the Americans losing their jobs and mil- Right now, the Federal Deposit In- problem. lions losing their homes, energy and surance Corporation guarantees depos- I think the New York Times said it health costs sky-high, with businesses its up to $100,000 for every citizen or well when they said: in trouble and loans of any kind incred- business. Meaning that if the bank goes Homeowners were also given short shrift ibly hard to come by, most Americans down, the Federal Government guaran- with provisions that mainly urged lenders and the Treasury to do more to help them. have been morally opposed to the res- tees your first $100,000 are safe. This would raise that limit, at least for a That’s unconscionable. The financial crisis is cue plan leaders in Congress and the as much a problem for homeowners as for administration presented. Most Ameri- period of time. The FDIC has a long history of expe- Wall Street investment bankers. Appeals to cans aren’t too interested in a plan lenders’ better natures has not worked to rience in protecting taxpayers from an that risks rewarding those who got us bring lasting relief to homeowners. If they infusion of public capital, especially by into this mess, and they are absolutely are still not working in the coming months, preferred stocks and warrants. They right to be outraged. Congress needs to revisit the issue. know what is the right stock and war- I, personally, as someone who in I agree with them totally. It should rant. These are the guarantees for tax- March of 2007, at a Senate Banking be a basic principle of our actions now, payers. It would stop the flight by Committee hearing, raised the fact that if we have to rescue Wall Street small businesses from some banks to that we were going to face a tsunami of from their profit-seeking failures, we those banks that are considered too big foreclosures and that we should be should also rescue homeowners, many to fail but leaves other institutions ahead of the curve and deal with that of whom are in trouble through no without the resources to be part of the reality, unfortunately, had the admin- fault of their own. Remembering Main lending that is necessary in the com- istration say to me at that hearing Street is beneficial to all of us, and re- munity. Deposits would stay in these that it was an exaggeration. Well, un- membering that a foreclosure in our institutions because there would be neighborhood affects the value of every fortunately, we haven’t even seen the newfound confidence, and others would crest of that tsunami, and this is the house on the block and brings down the now be depositing their money because broader economy, it doesn’t make issue that is at the core of our chal- they would have a higher insurance sense to simply sign off on a plan that lenge. So I am, personally, incredibly level, of up to $250,000, which would keeps the CEO in their office but kicks angry that the greatest economy in the provide liquidity to lend to those very a family out of their home. world has been brought to this point. businesses that may be placing their If we are going to solve the problems But let us be very clear: Those people resources there. Again, these are the that are at the root of the crisis, we who brought us into this process have small businesses that create 75 percent have to provide real relief for strug- to be brought to justice, but while we of all the jobs in the country. gling homeowners. That is incredibly consider that, the reality is we are all So I hope we will look toward includ- important. One of those ways is facing a consequence. That said, the ing that provision. I think it is a good through Fannie Mae and Freddie Mac. need for accountability doesn’t take one. Change is a good part of what we They are now Federal entities. Not away the need for action to rescue the are seeking to do with an institution only were they federally backed at one system they damaged. As much as that has a long history of being suc- time, but they have now been taken maybe some reckless CEO deserves to cessful on behalf of the taxpayers. over by the Federal Government. They lose their job, we can’t watch 2 to 3 I also hope we will look at home- do not need legislation to have a 90-day million Americans lose their jobs to owners. I had a pastor in my home freeze on mortgages that may be in achieve that result. We can’t let the State of New Jersey who had been foreclosure. We can try to rework those entire system fail to punish the few working with not only his congrega- mortgages and make them performing who brought us to where we are today. tion but others with his community de- loans and keep people in their homes. We have already lost over 600,000 jobs velopment organization to try to save We can make them positive assets this year alone. We have a 6.2-percent homes. We are told that, in fact, we are versus negative assets for the bank, unemployment rate—the highest in 5 getting the lenders and the banks to and that is one thing we can do with- years. In some communities, such as reconsider the mortgages and refinance out any action. But we need the Gov- the Latino community, it is 8 percent them and work with people so they can ernment and the administration to unemployment and rising. We have to stay in their home and be responsible move in that direction. That also fur- be very clear. If the crisis continues, it borrowers. It is better to have a per- ther limits taxpayer exposure. is going to drastically change our way forming mortgage versus one that is Finally, let’s go back to that poll. of life for the worse. So doing nothing nonperforming and is a negative asset What did Americans say? They under- is not an option. If we don’t shore up to that bank. So if we can keep people stand this is a crisis, but they don’t see the economy’s foundation, the floor is in their homes, making it a performing the connection in their lives, and I going to cave in on all of us. We have mortgage and making sure it is, in have tried to make that. They also to do something to thaw out the credit fact, an asset and not a liability to didn’t think there was enough in the market, restore trust in our financial those institutions, we should do that. package to deal with the challenges system, and put out this economic Yet recently we had a situation—one they face. Therefore, I know our col- wildfire before it is too late. example—of a home in New Jersey with leagues, many on the other side of the

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00039 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.067 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10154 CONGRESSIONAL RECORD — SENATE September 30, 2008 aisle, didn’t vote for the stimulus pack- will follow the leadership that has take. We have few opportunities which age we offered as Democrats. But it is taken place here. I hope we will under- allow us to have a chance to lay this time to hear what Americans are say- stand that there are still challenges in out as the Senator from New Jersey ing to you. It is time for a new eco- the days ahead. The administration has has just done, going back and exam- nomic stimulus package targeted at left us with bad choices, but they are ining sort of the autopsy of all of this. creating hundreds of thousands of choices, nonetheless, that we have to We are sort of caught up in the mo- good-paying jobs so we can offset the deal the best and act on in the Nation’s ment and exactly what is happening 600,000 that were lost over the course of interests at the end of the day. from moment to moment with the this year and to prevent cuts in critical As a member of the Banking Com- stock market and the bond market, the services for millions of Americans. I mittee, I agree with Chairman DODD. credit markets across the country and hope we will revisit that. We should have sessions to look very the unemployment numbers. But I We should institute a loan program closely at the regulations we need, this think going back and understanding to help jump-start one of the most im- administration and the one in the fu- the genesis of this is tremendously val- portant economic engines in America— ture. This one does not have too much uable. We have some very important small business. As I have said before, left to it to adopt. We need a strong re- and difficult decisions to make in the because of this severe credit crunch, sponse, but we need one that is well next few days that are critically impor- many small businesses—especially calibrated, has the appropriate over- tant. He has outlined them as well. those starting out but many well-es- sight, and we want to make sure Main None of them are perfect. None of us tablished businesses—are having trou- Street is protected as much as Wall like being here. But we have a chal- ble finding credit on the private mar- Street. lenge in front of us. ket. I think emergency loans should be The financial crisis we face is not an I think he did an admirable job of ex- available to small business along the academic exercise. I know some people plaining this, of where we have come lines of what we provide during a nat- talk about this esoterically. It is not and the idea of how we come back to ural disaster. This is a pretty big finan- an academic exercise. I hope people do the decision we make in the next 24 or cial storm, and temporary relief can not treat it that way because in an 48 hours but also what needs to be done make a big difference. After all, these academic exercise, you can be wrong after that to make sure we do not find are the businesses that create 75 per- and the consequences are not great. If ourselves back here in a matter of cent of America’s jobs. we think this is an academic exercise weeks or months grappling with even Tom Friedman put it well when he and we are wrong, then the con- more compound and difficult economic said: sequences will be very significant. It is choices. If our economy were a car, the financial a threat to our everyday way of life, So I did not want to miss the oppor- markets would be the transmission, but and if we do not act, we risk the flood tunity to come out and thank you. they’re not the engine. The engine of Amer- of suffering washing over the entire Mr. MENENDEZ. I appreciate Sen- ican prosperity is American innovation. And country. ator DODD’s words, and I appreciate, until we get that engine revved up again, in- This is one of those moments that above all, his leadership on the Bank- vesting in higher education and advanced en- each Member of the Senate and each ing Committee and here in this institu- ergy, we are going to be driving over a rough Member of the House must look to de- tion. You took a document that was stretch of road. termine the courage that is necessary sent to us that had no protections, no Most importantly, if the Federal to act in the face of something that is guarantees, and certainly nothing for Government is either going to take on not very popular, obviously. the homeowner, and you dramatically these bad assets or find some other way We might take a page out of John F. made it better. I know you are working of capitalization, there must be regu- Kennedy’s book ‘‘Profiles in Courage.’’ to look at what else can be done. latory reform as well. Those regula- In that book, which is stories of cour- Above all, I appreciate the state- tions must be robustly enforced. We age that have taken place in this insti- ments you have made moving beyond can’t have the cop on the beat, which is tution and in the other in moments of the immediate crisis, the leadership the regulator, ultimately hitting the great importance to the country, he you will exert on the committee to snooze button instead of being at their said in that book: In whatever arena of have us immediately look at some of post and making sure we don’t have ex- life one meets the challenge of courage, these other challenges which are in- cesses in the marketplace in a way no matter the sacrifices he makes—the credibly important for the Nation and that ultimately leads us to where we loss of his friends, his fortune, his con- a reassurance to the American people. are today. tentment, even the esteem of his fellow I appreciate the Senator’s leadership. So we never find ourselves in this po- man—the stories of past courage can Mr. DODD. I thank the Senator for sition again if we pursue robust regula- teach, they can offer hope, and they that. The Senator has pointed out, of tion and its enforcement. If we do not can provide inspiration, but they can- course, just as the Presiding Officer, do that, we will send the message that not provide courage itself. For this, his great interest in these matters, and it is okay for firms to behave reck- each man—and, I would add, each the Senator from New Jersey is, of lessly, and we will be forced to follow woman—must look into his own soul. course, a very worthwhile member of this challenge further down the line. Preventing collapse, helping those in our committee, as is the Presiding Offi- I do not mean to say that the move- need—that is our challenge. I hope cer. ment toward a rescue plan, with some that, with some changes and a commit- As we look at these questions, and I of the additions I talked about, wheth- ment to do more in the mainstream intend to do that. In fact, I am not er in that plan or following on, is going economy, we will have every Member going to wait long. Our intention is to bring the sunlight of prosperity to- look in their own soul and provide the that on the committee, we will move morrow. I think no one here should be- courage that is necessary to do what is aggressively—in a matter of days—to lieve that. But the consequences would right for our country and its people. examine further as to how we arrived be far greater. I yield the floor. in this situation, No. 1; No. 2, to mon- I think it was said best in the past The PRESIDING OFFICER. The Sen- itor how the bromide that we have when President Hoover said, ‘‘The fun- ator from Connecticut. been offered by the Secretary of the damental business of the country is on Mr. DODD. Before my colleague from Treasury, the solution to all of this, is a sound and prosperous basis.’’ Well, we New Jersey leaves the floor, I wish to working; and then thirdly, of course, are not on a sound and prosperous commend him for his comments. I had how do we reconstruct or construct basis. It sounds similar to some of the an opportunity—I was not on the floor anew the architecture for a 21st-cen- comments being made today. We need the whole time but was in the adjoin- tury financial services economy or one to address some of these fundamentals. ing offices. Of course, with modern that depends upon financial services as This in and of itself will not be it. technology, we have the opportunity to much as this one does? So I hope the Senate will stay even listen to each other and express our Clearly, the architecture of our regu- after we meet this challenge in the views. I commend him on his. It was a latory system, some rules of which go next day or so, and hopefully the House very thorough and important hour to back to the 19th century—many, of

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And it is sult within the next 24 or 48 hours. ter, the greater betterment for all my intention as the committee chair- Mr. WARNER. I thank the distin- Americans, whether they are rich or man, along with my colleagues who guished chairman of the Senate Bank- poor. serve on the committee and others who ing Committee for those remarks. I I just thought of that stanza. I found are involved in these issues, that we found the work product that you and a great deal of encouragement and fell begin our work very quickly to address others produced and which was distrib- off to sleep thinking maybe tomorrow those questions. uted yesterday to be of great value. I will be a better day. Thus far it seems I see my friend and colleague from was prepared to move forward and add to me it has been productive. Virginia. Of course, the irony or ironies my voice in support. But I yield now, of I thank the Senator. I enjoy always is I was just about to talk about him, course, to the circumstances as the talking history with my friend from and this was not prearranged, him ar- consequence of the House’s action last Connecticut. riving on the floor, and he may have night. Mr. DODD. I love that as well. My some comments to make as the system I think the leadership on both sides colleague from Virginia, during mo- here allows us to go back and forth. I is very diligent; that is, the leader- ments of stress and strain over the really came over to commend Senator ship—our Senate distinguished major- years, when it looks as though all is MENENDEZ, but I have some comments ity leader, Senator REID, and Senator lost and we could never come back to- I want to make about my friend from MCCONNELL, the minority leader—is gether, he has pulled me aside in one Virginia, but I do not want to deprive working on this, and I do hope we can corner or niche of this building, and I him of the opportunity to be heard. bring this to some sort of a resolution can hear him say it over and over Mr. WARNER. No. I have been very tomorrow. again, in the words of Winston Church- honored to be on the floor in connec- You know, it is interesting, as I sit ill: Never, never, never give in. We are tion with certain tributes, and I just by here to talk to the Senator from Con- at one of those moments. coincidence am here. But I am hopeful necticut, our friendship goes back al- Mr. WARNER. The Presiding Officer that the distinguished chairman could most the full 30 years I have been in is a man who is a great student of his- maybe tell us, the Senate—I am quite the Senate. And last night, when I tory. We shared a few words earlier anxious; I have been here throughout went home with a bit of a heavy heart today about this situation. I think I the day, most of it—what is the state for fear that this situation was of such best yield the floor so you can get of the resolution of this very important consequence as to almost every single down to it. I wish you great luck in all problem that faces our Nation here American, I was trying to reflect, as I of your work, and good fortune, be- today? so often do, on other chapters of his- cause it is so vitally important not just Mr. DODD. Well, I can tell you, my tory which confronted our great Re- at home but indeed for the whole friend, the majority leader, Senator public and other nations, because this world. REID—I know from having met with is a global problem, as the chairman JOHN WARNER him earlier today—is in constant con- knows. I put together some remarks Mr. DODD. I thank the Senator. This sultation and discussions with the that I thought something of giving on is not a prearranged or prestaged leadership of the Republican minority the floor at some point in time. But I event. It was my intent at this moment of this body as well as the Democratic went back to a very famous letter. And to spend a few minutes talking about and Republican leadership of the other the reason I raise this, I think my good my friend from Virginia with whom I body, the House of Representatives, to friend, the Senator from Connecticut, have just shared, once again, another determine when and how we can go for- and I have discussed many times the memorable moment, as he talks about ward on the legislation that we crafted chapter of history during World War II the moment we are in. That is char- both here and there over the last 2 and the role your father played at the acteristic of my friend from Virginia. weeks to respond to this economic cri- conclusion of that war in terms of the One of the reasons he will be missed, sis we are in. Nuremberg Trials. You yourself have with his well-deserved retirement, is I am proud to have been involved, written eloquently on this period. So that throughout my 28 years here—ac- and I am sad to have been involved. just by coincidence, I went back and I tually I have known JOHN WARNER a Normally, we craft bills and we take thought about the year 1941 and, in bit longer than that, but we have pride in the fact that we are solving a particular, January of 1941 when Great served here together for almost three problem, and I hope we are in this case. Britain at that time was undergoing decades—in every moment I can think But I am fairly confident we will be the full wrath of all of Hitler’s military of that we have been in a moment not able to get to another vote and that might. It was one of the darkest hours unlike the moment we are in—none the other body will bring up the matter in the long history of the British Em- quite so grave economically—it has al- as well. The order of all of this is being pire. ways been the posture and position of discussed as you and I stand in this You recall that Roosevelt penned a JOHN WARNER to see this body not as Chamber. No final conclusions have short note, a letter, to Churchill, and it one that is divided by this architec- been reached about that, but I know was hand delivered to Churchill by tural divide that separates us by party, people are working hard to determine Wendell Willkie, who was coinciden- which must confound and confuse the how best to proceed forward. tally in London. Roosevelt chose the public as they look at us, wondering if The last thing we need is to have this first five lines of that famous poem of we ever begin to think of ourselves as not work again. We better decide Henry Wadsworth Longfellow: Americans with a great privilege of whether we are serious about this. This THOU, too, sail on, O Ship of State! serving in this historic institution, is a difficult vote—I would not suggest Sail on, O UNION, strong and great! that we would come together to find otherwise—but it is an important one. Humanity, with all its fears, solutions to problems. I know that those who cast votes yes- With all the hopes of future years, It has been characteristic of JOHN terday are having some second Is hanging breathless on thy fate! WARNER, from the first moments I have thoughts about the condition they And I simply say to those, the leader- known him, to always see this divide as placed us in and are trying to find a ship of our body and the leadership of being sort of a silly barrier; that it way to get back on track again. So I the House, they might read that be- probably would be a wise, although am very optimistic we can do that. I cause that is how serious this problem probably not a welcome idea, that the know the White House is now engaged is. It may have some parallels. That seating arrangements ought not to be much more aggressively than it has was a war, but in a sense we are in an based on party but maybe some other been on this issue, which I welcome. I economic titanic struggle to regain, in configuration where you actually have

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00041 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.077 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10156 CONGRESSIONAL RECORD — SENATE September 30, 2008 to sit next to someone you may dis- rious debate and discussion. It ulti- Mr. WARNER. We finally solved the agree with or of a different party from mately worked out well for both States submarine problem by, I think you time to time. That, in itself, may serve and the country as a result. But the built part of the ship—we call them as a crucible in which better decisions final decision came down that Con- ships now rather than boats—and we might be reached. necticut was going to be awarded that built the other part. They are put to- I am going to miss him very much on contract. gether in the yards of the two. They many different levels. We have only In a moment like that, after weeks are sailing the seven seas today. That served on a couple of committees to- and weeks of back and forth, you might program is running on, and our sole gether over the years, not by choice expect that the delegation or the Mem- production of submarines now is in but by circumstance. Yet on those oc- ber you have been dealing with on the Connecticut and in Virginia, putting casions, I have enjoyed immensely the other side would feel embittered or the parts together. work of JOHN WARNER. There have been upset, a variety of emotions that would Mr. DODD. That is right. We hope it times—and he will remind me often— normally be put on the negative side of works. At the time that happened, I when we haven’t shared a philosophical the ledger. I don’t think I have ever kept thinking of the person who once standpoint in common over the years. told this to too many of our colleagues. described a camel as being a horse that But on levels far more significant and I arrived back in my apartment that was designed by Congress in the sense far more important to me—and I would night feeling good about the result and of building two parts of this boat and hope with other Members as well—my the fact that it worked out well. And welding them together. It was a perfect relationship with JOHN WARNER is one there on the outside of my door was a congressional result of a matter. None- based on a love of this institution, the package. I opened it and there was a theless, I cherish those comments. importance of it. The hope and the as- first edition copy of Jack London’s I wish you the very best. Thank you pirations of a people depend upon it. ‘‘The Seawolf.’’ It was sent to me by for your service to our country. That, more than anything else, is what my colleague from Virginia, with a CHUCK HAGEL I have enjoyed so much about working congratulatory note on Connecticut I wanted to mention as well a couple with JOHN WARNER, his reverence for and Rhode Island prevailing in this of other colleagues who are also retir- this body. particular contest; that the country ing. If I could, one is my great friend I will use the words of John Stennis, would be better if we all worked to- from Nebraska, CHUCK HAGEL, with the former chairman of the Armed gether to get this new piece of military whom I have served on both the Bank- Services Committee—the position hardware built. ing and the Foreign Relations Commit- which JOHN WARNER now holds—who I thought to myself, what an incred- tees for the past 12 years, truly a won- spoke at a Democratic caucus meeting. ible gesture at a moment like this, the derful person. We have worked together He paused when he stood up for several sensitivity, the appreciation, seeking on a number of issues. He got his first job at 9 years of age seconds and said nothing at all, and the out a first edition copy of Jack Lon- when he began to help his family eco- room quieted, as you might imagine, to don’s ‘‘The Seawolf,’’ the very program nomically. He was 16 when his dad died a stillness. The first words of John we were talking about. That is the and took over raising his family along Stennis were: I am a Senate man. kind of person JOHN WARNER has been. I thought, what a remarkable mo- While there will be great debate and with his mother. I believe most of my ment, how he began his discourse with discussion, and he has certainly done a colleagues are aware that he was a true us, those of us who were new, by de- fantastic job working with CARL LEVIN hero of the Vietnam war. He saved his scribing himself as a person of this in- on the Armed Services Committee and brother who, in fact, was serving with has been a great custodian of guaran- him in that conflict. stitution. JOHN WARNER is a Senate He has done a remarkable job in his man. He has done many things of great teeing and protecting our Nation’s se- public service years as well. We serve import in his life. But if I were to be curity during that tenure, it is those moments of arriving home that night on the Foreign Relations Committee asked by people what is a good example many years ago and picking up that together and the Banking Committee. of a Senate person—I guess more politi- book that I still cherish and have by Whether the issue has been Iraq, Ser- cally correct today, given the fact that the way. I will read it to my daughters bia, or Croatia, Cuba, regardless of who we have a lot of diversity of gender in at an appropriate time in their lives, a comes before our committee, no one this institution—JOHN WARNER has great story in and of itself. It is mo- asks tougher questions or gets been a Senate person. He understood ments like that. straighter answers than CHUCK HAGEL. the historical value of this institution I wish you the very best, dear friend. On Cuba, for instance—again, an ex- and the importance it continues to Mr. WARNER. Mr. President, I thank plosive issue politically—CHUCK and I play. While we have had our differences my friend. I must say to you that John offered a resolution to end the embargo philosophically, we have enjoyed great Stennis, if I had to name five individ- in Cuba because we agreed that the friendship on a personal level. uals in this institution—I think I have current policy toward the island has I cherish in my office a wonderful served with 272 Senators—John Stennis failed the Cuban people and the Amer- photograph of JOHN WARNER and I sail- would be one. He was a magnificent ican people alike and because we re- ing together in my Old Friendship man. As a matter of fact, I have his old fused to let America wait on the side- sloop off the coast of Connecticut and desk. In his final days here he called lines while the future of one of our Rhode Island, enjoying great dinners me in one day and he said: I want you closest neighbors is determined by oth- together, a game of tennis every now to have this desk. Of course, it was a ers. and then over the years. So beyond the long story, but there it is. I still have It is that kind of courage that he political discourse and the substantive it in my office. He was a great teacher. brings to the debate, kind of blows debates or disagreements, there are re- Scoop Jackson was another great through it all and says: What is the lationships here that are far more sig- teacher. I hope some of the young Sen- right thing for our country and, in this nificant on a human level than that. ators, that maybe they have learned case, the people of Cuba? I was thinking the other day about from you and me. Who knows. But in On the Banking Committee, CHUCK one of these battles that goes on from those days, those were men of formi- and I worked for months to reinvent time to time. This one was over which dable strength intellectually, com- the infrastructure of our Nation with State was going to win the contract to mand presence, and they were great the creation of a national infrastruc- build the Seawolf submarine. The Pre- teachers. Stennis was foremost among ture bank, 21⁄2 years developing that siding Officer from Rhode Island would them all. bill. In fact, it was CHUCK who con- have certainly taken the side of the I thank my dear friend for his com- vinced me we ought to announce the New England point of view. It was a se- ments. outcome of our work one day in August rious discussion about whether it Mr. DODD. I thank my friend for his last year. I argued with him a bit. I would be in Newport News or in Con- distinguished career. There are plenty said: No one will pay any attention to necticut and Rhode Island that the of references to that in the RECORD. I announcing an infrastructure bill in contract would be awarded. There was thought I would share at least a couple August. Who wants to hear about infra- a lot of jockeying back and forth, a se- of personal anecdotes. structure in August.

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00042 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.079 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10157 CHUCK said: No, let’s have that press a result of PETE’s leadership on an an inner confidence. That is PETE conference and let people know what issue that is going to make a difference DOMENICI in so many ways. we are doing. in their lives. Because of PETE’s leader- You only need to know his wife We met in the gallery at 10 a.m. I ship, candidates for President in both Nancy, whom Jackie and I have gotten think we had two reporters who showed parties now acknowledge that we have to know—they are neighbors of ours on up. I said: I think I was right, CHUCK. to be serious about doing something Capitol Hill. We have had wonderful No one cares about infrastructure. about global warming; again, serious dinners together on Sunday nights, By 5 o’clock that afternoon, CHUCK about reducing our emissions, ending with PETE doing some of the cooking, HAGEL and I were on every TV screen our dependence on oil. and Nancy, I suspect, doing most of it, in America because, regrettably, of the Again, JOHN WARNER and PETE but PETE taking credit for most of it, great tragedy in Minneapolis that oc- DOMENICI are classic examples of people as we would gather and have wonderful curred that afternoon. The bridge col- who step out of what you might nor- family gatherings, as they would em- lapsed. Of course, infrastructure was mally associate them with on an issue brace and cherish the new arrivals of the subject matter for the next weeks and get involved and make a dif- my family, my two daughters. So we to come. So, once again, CHUCK HAGEL ference, almost overnight, because are losing not just a colleague but a understood the timing of an issue in they said this is worthy of our atten- neighbor and a friend and a person I bringing it up and how important it tion and certainly serious, so serious care deeply about. was for our Nation. Little did we know that it demands action. Together, these two people, Nancy that tragedy would fall on interstate Thanks to PETE’s relentless vigi- and PETE, have raised eight wonderful 35–W over the Mississippi River. lance, I am confident that safe and se- children. As one of six myself, their There again was CHUCK HAGEL, stand- cure nuclear energy, which I happen to house reminds me so much of growing ing with a colleague of a different be a supporter of as well, will play a up in my own house—kids, very inde- background, putting aside ideology and large role in helping us address one of pendent thinkers, all challenging their politics to work together to find new our largest problems in the years parents on every imaginable subject and innovative ways to address the Na- ahead. Because of PETE, last year over matter, and then going out the door tion’s most urgent priorities. That is 5 million children in 51 counties stud- and parroting their parents’ positions CHUCK HAGEL, a remarkable person and ied what character means in the class- on every issue—the parents never to a very good Senator over the years. Pa- room. PETE and I are the authors of appreciate the fact that their words triotic, never partisan, tough but fair, that idea. It started out as a small idea were actually carrying the day. It can always engaged, sometimes even in his State and my State, to insist be messy in those households, but it is confrontational, but never, ever bellig- that part of the day, on the athletic never boring, and certainly never so in erent, a strong Member. This institu- fields, in classes—not just for some 15 the Domenici household as well. tion will miss CHUCK’s ability to tran- minutes—students embrace one of the That is why there is one legislative scend politics and serve the American six pillars of great character and make accomplishment that best captures people. As such, the people of Nebraska it a part of the seamless garment of a PETE DOMENICI, and that is the Char- deserve our thanks for sending CHUCK classroom. acter Counts bill that we started to- HAGEL to serve with us over these past Today, as I say, in 51 counties, as gether in 1994. Character Counts was 12 years. I will miss him. We all wish well as in virtually almost every State, founded on a simple notion: that core him the very best. He served our Na- Character Counts is there, to help chil- ethical values are not just important tion very well during his service. dren learn early on the importance of to us as individuals, they form the PETE DOMENICI what honesty and integrity mean, foundation of a democratic society as The last Member I want to talk among the other pillars of good char- well. about is PETE DOMENICI with whom I acter. Values like trustworthiness and re- have had the privilege of working on so Yet when we talk about PETE and spect, responsibility and fairness, car- many issues over the years. In fact, what he has accomplished for our com- ing and citizenship are at the core of only a few weeks ago I was honored to munities and our country, we would be who PETE is as a human being. Despite be asked to come and speak on behalf doing a great disservice if we were to the fact that it was PETE’s own family, of PETE DOMENICI in Las Cruces at New sum up his legacy as some series of heritage, and faith that taught him Mexico State University where the issues. My affection for these Members character’s importance—his mother Center for Public Policy is named for I am talking about transcends the sub- and father, the nuns in his Catholic PETE DOMENICI. It was quite a gath- stantive issues which they have cham- school—he recognized something that ering at which I was the keynote pioned over the years. It goes deeper too often gets lost today: that in a so- speaker, where PETE was being recog- than that. ciety that celebrates our differences— nized for his contribution to the State PETE’s contribution to the Senate our heritage, our personal interests as and our country. will be measured in a volume of bills he individuals—character is the one thing Jim Baker, former Secretary of introduced with a number of votes he that transcends them, whether they be State, spoke at the conference as well took; some 13,000, by the way, for cultural, religious, economic, or social. over that weekend. It was quite a gath- which I think there are only 8 or 10 Somewhere along the way we lost ering of people from that State to ex- Senators who have a similar record. that as a country. We forgot how im- press their appreciation for PETE’s 36 But who PETE DOMENICI is, is much portant character is to the strength of years of serving the people of his home more than that. Long before he was a our families, our communities, our in- State. Again, a legislative record that Senator, PETE was a wonderful father stitutions, and who we are as individ- is clear and almost without peer in and husband. He grew up in a remark- uals. many ways. able family, an immigrant family to Quite frankly, when PETE retires at Because of PETE DOMENICI our coun- our country—the classic American the end of this year, in a matter of try will soon recognize that mental ill- story. Many of our fellow colleagues days now, I am worried we will be los- ness is as serious as any physical ill- can tell similar tales of how they ar- ing a piece of that from the institution ness. He, TED KENNEDY and Paul rived in this great Nation of ours and in which he and I serve—the value that Wellstone were so pivotal in making us the contributions they have made. he has brought on this subject matter all aware of how important this issue Long before he dreamt of becoming and so many others. is. Without PETE’s leadership, I don’t chairman of the Senate Budget Com- So let me say thanks to PETE for his think this would have happened. With- mittee, PETE was a boy counting pen- warmth and friendship, and I wish him out PETE going to his colleagues and nies at his father’s grocery business in and Nancy the very best in the years to saying: Let me tell you about my fam- New Mexico. So often all we hear about come. He is a remarkable individual ily—he had the courage to talk about politicians is negativity—and it breeds and one who will make a difference in his own family and what they have cynicism, too much, frankly. But in whatever he decides to do with the re- been through—it has made a difference. my experience, the most effective leg- mainder of his life. I thank him for all Today millions of people will benefit as islators have remarkable strength and of his contributions, and I look forward

VerDate Aug 31 2005 03:09 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00043 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.080 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10158 CONGRESSIONAL RECORD — SENATE September 30, 2008 to seeing him and Nancy as often as we and Public Works Committee. JOHN whom I had the good fortune to serve can in the years to come. WARNER, even though he had been here with in the Senate, was the Secretary WAYNE ALLARD a while, was one of the relatively new of the Navy. The Vietnam war was on- Mr. President, I, again, want to say a members of that committee. Some peo- going. They were asked by the Sec- kind word or two about WAYNE ALLARD ple had been there for so long. John retary of Defense, Melvin Laird, to as well, who is retiring. We serve on Chafee was the ranking Republican on come down and see what was going on the Banking Committee together. He that committee. What a wonderful man at the Capitol Mall. So, as Senator has a wonderful family history dating he was. But anyway, JOHN WARNER, he WARNER said, they left their Cadillacs back decades in Colorado. Some of the took such good care of me. He looked someplace else that was supplied to the earliest arrivals from the East were the out for me. I sat on the other side of Secretary and the Under Secretary, Allard family in northern Colorado. the dais, but he took good care of me. and they took off their fancy clothes That family has made wonderful con- We were able to do some good things. and came down to the Capitol Mall. tributions. I was fortunate, I was subcommittee And look around they did. There were WAYNE has been a wonderful member chairman my freshman year. Senator tens of thousands of people here, tens of the Banking Committee. We have WARNER will probably remember this. of thousands—hundreds of thousands of not spent a lot of time on many issues We worked on a number of things. One people at the Mall. They were dem- together, but I can tell you, on issues of the things we worked on was Alar. It onstrating against the war. Frankly, such as regulatory reform and working was a product that people sprayed on after listening to the speeches and together to see we had a good housing cherries, apples, grapes to keep them watching the crowd and seeing the fer- bill last summer, WAYNE ALLARD was a from falling off the trees and vines vor of the crowd, both Secretary very constructive and positive member, more quickly. We legislated and legis- Chafee and Under Secretary WARNER and he can be very proud of his con- lated, and we were never able to get returned to the Pentagon and rec- tribution to this body. anything passed, but we accomplished ommended to Melvin Laird that he bet- Certainly, as to the landmark Trans- what we set out to do because through ter take a close look at this war, that portation bill we sent to the President the hearing process we focused so much things would have to change, based on just a few years ago, WAYNE ALLARD attention on this that people stopped their observation of what was hap- was as much responsible for that as using it. pening on the Capitol Mall that day. any Member of this body, coming from JOHN WARNER is a distinguished gen- That is JOHN WARNER perfectly de- a State where you normally would not tleman. There is no more distinguished scribed: Someone who gathers the think of transportation issues, cer- gentleman than the man we refer to as facts, and after having an under- tainly not mass transit issues as being JOHN WARNER—JOHN WILLIAM WARNER. standing of the facts, issues his honest pivotal. But WAYNE ALLARD played a I love his stories. He talks about his opinion as to what is going on. He and very important role in all of that. dad who was a physician. John Chafee, two wonderful human So to WAYNE ALLARD, his wife Joan, When JOHN was 17, he had in his beings, two dedicated servants of the and their family, I wish them the very heart that it was important to wear U.S. military returned back to the Sec- best as well in their retirement years. the uniform of the American service- retary of Defense and said: Things have Again, Mr. President, to my friend, man. He volunteered for the Navy so he to change. JOHN WARNER, a special thanks, my could fight in World War II. He says he After serving in the Department of dear friend. Now, when they say there did not do any fighting, but he would the Navy, he did a number of other is a white-haired Senator roaming have if he had been called upon to do things. But the story I try to tell is, I around the floor, they will not have to so. repeat, a real JOHN WARNER portrayal guess whether it is the guy from Vir- After his first tour of duty, he re- because he is always eager to listen to ginia or the guy from Connecticut, un- turned home to his native Virginia, all sides of an issue. He is always will- less someone else arrives here with a where he attended Washington and Lee ing to part from conventional wisdom full head of white hair. So to the white- University on the GI bill, and then the in order to do the right thing, and then haired caucus, again to JOHN WARNER, University of Virginia Law School, once he says he is going to do some- I thank you, dear friend. which, by the way, then and is now a thing, that is it. So after serving in the Mr. WARNER. Mr. President, I thank very difficult school to get in. It is al- Department of the Navy, he decided he our distinguished colleague. ways rated as one of the top 10 law would accept the challenge of being the Mr. President, I see the distinguished schools in America. It is a great school. national coordinator for America’s bi- majority leader. His legal studies were interrupted centennial celebration in 1976. As my Mr. REID. Mr. President, I am going again to be in the U.S. military, this colleagues know, there are a lot of to give a speech regarding Senator time as an officer in the Marine Corps things that happened during that pe- WARNER in just a minute. during the Korean war. His 10 years in riod of time under his leadership. But I suggest the absence of a quorum. the Marine Corps earned him the rank as a little side story, there is a story The PRESIDING OFFICER. The of captain, CAPT JOHN WARNER. about Virginia City, NV. Virginia City, clerk will call the roll. When he completed law school, he NV, at one time was a thriving place of The bill clerk proceeded to call the was selected as a law clerk by one of some 30,000 or 40,000. It was the reason roll. the outstanding and historic circuit Nevada became a State so far ahead of Mr. REID. Mr. President, I ask unan- court judges: E. Barrett Prettyman. most Western territories. In 1864, we imous consent that the order for the What a name: E. Barrett Prettyman. became a State. But as part of his quorum call be rescinded. But those of us who have been in the going around the country, as you do The PRESIDING OFFICER. Without practice of law have always recognized when you have a job such as his, rais- objection, it is so ordered. that Prettyman wrote some pretty ing money and giving speeches, he was JOHN WARNER opinions. He was a renowned lawyer asked to go to Virginia City, this his- Mr. REID. Mr. President, it is very and, of course, now we have a Federal toric place in Nevada. He had never standard in the Senate, we say ‘‘the courthouse named after Judge been there. It is a very winding road to distinguished gentleman,’’ and we say Prettyman as a result of his being such get up there, and it is a dangerous that a lot, and we mean it. But it is an outstanding judge. JOHN WARNER road. But he was looking forward to never more meaningful than when you worked for him. being there because one of the patrons refer to JOHN WARNER as a distin- After 4 years as an assistant U.S. at- in the area—there are some people who guished gentleman because that says it torney, JOHN WARNER was appointed are wealthy in Virginia City—decided all. If there were ever a distinguished and confirmed as Under Secretary of to have dinner in honor of the bicen- gentleman, JOHN WARNER is that per- the Navy, then as Secretary of the tennial celebration. So JOHN WARNER son. Navy. and his entourage arrive in little Vir- I can remember when I first came to Then, one of my fond memories of ginia City, which now, by the way, is the Senate 22 years ago, I was so fortu- JOHN WARNER is his telling a story. He not 30,000 or 40,000, it is a very small nate. I was placed on the Environment was Under Secretary; John Chafee, community of maybe, if we are lucky,

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00044 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.081 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10159 a thousand—but probably not. He goes earned the reputation as one of Amer- talked together. How well I remember to the assigned place. He knocks on the ica’s alltime great legislators. He is an you as the chairman of the committee; door. There is no answer. He looks in expert in a number of different areas: you remember we worked on batteries. the window, and you can see the beau- national security. He is a champion for For some reason, the lead battery was tiful table, it is all set. It is a banquet the men and women in the military, the center focus at that time. in this beautiful home. So someone there is no question about that; he Mr. REID. I say to my friend, now it with JOHN WARNER goes to the local served as chairman and now the rank- is a big issue. We tried a long time ago. law enforcement and says: Could you ing member of the Senate Armed Serv- Mr. WARNER. That is right. But we help us? Because they thought maybe ices Committee; he is a leader on envi- got some money and put it into re- something was wrong. So the local dep- ronmental issues; he served as long- search of batteries, which hopefully uty comes and looks in the window time senior member of the Environ- might be contributing in the future to with everybody else, walks around the ment and Public Works Committee, our deliverance from the problems we house, and he comes to Senator WAR- where I had the pleasure of serving have with reliance on foreign oil and NER and says: Mrs. So-and-so is in her with him. greater use of our motor vehicles oper- vapors. The dinner will not go forward. JOHN WARNER is going to return to ated by natural gas. But I could go on. In Nevada, rather than ‘‘in her vapors,’’ private life at the end of the year. The Mr. REID. Mr. President, could I in- we would have said she is too drunk to family, our family, our Senate family terrupt my friend and say one thing? I a have a party. But anyway, JOHN WAR- will lose a tremendous leader and wish to say this because I try not to be NER, being the gentleman he is, re- friend. In a place where one’s integrity envious. Envy is not anything that is sponded that was okay. Although he is paramount, I have not known anyone good, but I have to admit that I am so came to Virginia City, he did not have more honest and honorable than JOHN envious of your hair. I mean, for a dinner at that home that night. He WILLIAM WARNER. I have served man—I mean, I am envious. I have to went someplace else for dinner. throughout my career with lots of peo- acknowledge that. It is great. I wish I I heard Senator DODD’s remarks ple at city level, county level, State could get up in the morning and go to about him. JOHN WARNER is a unique level, in the House of Representatives, the mirror and have that. individual. I see the Presiding Officer and in the Senate. I have served with Mr. WARNER. I am about breathless who is a brandnew Senator. During hundreds and hundreds of men and at the moment, but if you will spare that time, we had something called the women. There may be, JOHN WARNER, me a minute to tell a story about that. nuclear option, and I heard Senator people who are as honest and as honor- My mother lived to be 96 years old and COLLINS talk about this today. Senator able as you, but never have I met any- she bequeathed this to me. But I can COLLINS was talking about how JOHN one more honorable and more honest tell you a number of times calls come WARNER silently was the leader of that than you. Our country is grateful to into my office and people will inquire situation that took place. I talked to you for your service. Even though the and ask for the Secretary, not me, and JOHN WARNER during that period of people of Nevada don’t know you, if they will say my husband has a bit of time. JOHN WARNER told me what he they did, they would be as grateful as I a problem, but it can be solved if the was going to do. I never once told any- am for what you have done for our Senator would say where he gets his one publicly what he said he would do, country: Dedicated service in the Sen- wig. So I am not—that is true. It has but we all knew where he was. I knew ate, in the Armed Services Committee, happened about a dozen times in my 30 where he was. He was on the right side for the cause of democracy. years. So that is one of the great of the issue. Because of his credibility, He knows everybody. I was talking to things—— the issue, with the help of some new him the day before yesterday when Mr. REID. So you will forgive me of Senators such as the Presiding Officer Paul Newman died. I said: Did you my envy? from Colorado, was settled to the good know Paul Newman? He said: Yes. My Mr. WARNER. Yes. of the country. son went with his daughter for a couple Mr. REID. Thank you. JOHN WARNER is a person who has years. I said to him: Was his daughter Mr. WARNER. But I thank my distin- class. He has clout and he has tremen- as pretty as Paul Newman was hand- guished leader. I also wish to say, on dous courage. JOHN WARNER was sitting some? He said: More so. That kind of behalf of my wife, the deep affection as a Senator. A Democratic Senator speaks to his son, too, doesn’t it? our two wives have. They have been was his colleague. A person was run- JOHN WARNER, a man who had an es- privileged to serve the responsibility of ning as a Republican against his col- tate in Virginia, decided a number of shepherding the annual event for the league in the Senate, somebody whom years ago to no longer have that and First Lady. When that occurred in my JOHN WARNER didn’t agree with, and he moved into the city. I wish I had the house, everything stopped. I mean all said so. That takes courage. Think words to express, to communicate, to engines, everything. The total focus for about that. You are a Republican from tell him of my affection, my admira- weeks was that luncheon. I think my a Republican State. You are sitting tion. But even though I may not be wife succeeded your wife. with a Democrat. The person who is able to express it very well, I want Mr. REID. That is right. the nominee for the party is somebody JOHN WARNER to know that JOHN WAR- Mr. WARNER. My wife learned the whom you would think the senior Sen- NER will always be in my heart. meticulous manner in which your wife ator from Virginia would support. JOHN The PRESIDING OFFICER (Mr. planned that event. But the wives play WARNER, as a matter of conscience, SALAZAR). The Senator from Virginia a vital role in this institution. While couldn’t do that, and he didn’t. Every- is recognized. we sit here and have what I call the body said ‘‘that is the end of JOHN Mr. WARNER. Mr. President, I think good old democracy mind and we argue WARNER. He will never get reelected.’’ sometimes Senators should be seen and between each other in the quietude of But, of course, it only caused his popu- not heard from. That might be this mo- the evening, our wives will put us to- larity to grow in the State of Virginia ment for me. I am deeply moved and gether and all is forgotten. That is the because they know JOHN WARNER is a humbled by your comments, my dear strength of this institution. person who supports people for whom friend and leader of this body, at this I thank my good friend. I do not de- they are, what they do, not any polit- time. As I was talking with Senator serve the rich remarks he made, but I ical party. DODD about history and how both of us accept them in the sense that he made JOHN WARNER was elected in 1978 to have an interest in the great events of them. the first of five terms representing the our Nation, we talked about the chal- The PRESIDING OFFICER. The Sen- Commonwealth of Virginia. Three lenges facing America tonight and how ator from Illinois. years ago, he became the second long- fortunate we are to have leaders such JOHN WARNER est serving Senator in the history of as yourself and Senator MCCONNELL on Mr. DURBIN. Mr. President, I join in the Commonwealth of Virginia. It is this side of the aisle to lead our Nation the tributes of my colleagues who are without any elaboration or fluff of any out of this situation. I am glad we leaving the Senate on the Republican kind that now, in his 30th year as a didn’t dwell on those heavy matters. side. There are only three ways to Senator, JOHN WARNER has rightly We touched on the light ones as we leave the Senate. You can retire, you

VerDate Aug 31 2005 03:09 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00045 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.083 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10160 CONGRESSIONAL RECORD — SENATE September 30, 2008 can lose, or you can die. They have she will when she returns—she will tell said I was the sergeant in the mere chosen the best of the three options, to you, were it not for JOHN WARNER’s ranks of his platoon. But it did, and it leave of their own will. leadership, the debate on the issue of enabled me to add one more chapter to The first Senator to whom I wish to global warming would not have gone what I have tried to do so much: to pay tribute is on the floor. That is Sen- forward in the Senate this year. Both repay to the current generation, the ator JOHN WARNER of Virginia. I have Senator WARNER and Senator men and women who very bravely wear listened to the tributes from Senators LIEBERMAN stepped up and found a bi- the uniform, all the wonderful things HARRY REID and CHRIS DODD and so partisan approach to deal with this that were taught me by previous gen- many others and I join in the chorus. I issue. We did not pass it. I wish we had. erations of men and women who wore will not recount JOHN’s illustrious ca- But we certainly engaged in debate the uniform from whom I learned so reer and service to our country. But he many thought was impossible. We much throughout my entire career and was kind enough a few weeks ago, when brought it to the floor. We engaged the public life. I called and said I do a cable show, can Senate and the American people in a That is landmark legislation, I say to I drop by his office, and he agreed to it. thoughtful consideration of an issue my good friend from Illinois. It is We have captured forever, in this little that will be here for generations to something that is well-deserved for the cable show I do, his office. Some of the come. men and women and their families. I memorabilia tell the story of his life I consider it a great honor to have commend you for bringing up that and the story of Virginia and the U.S. served with JOHN. I think he is an ex- about our good friend and colleague, Navy, I might add, and he also shared ceptional individual. Virginia was Senator WEBB. so many great stories of his service to lucky to have him as their voice in the I yield the floor. our country in so many different ca- Senate for 30 years. America was lucky CHUCK HAGEL pacities—in the Navy, in the Marine to have him in service to our country Mr. DURBIN. Mr. President, 12 years Corps, in the President’s Cabinet, and in so many different capacities. ago when I came to the Senate, I was in the Senate. The PRESIDING OFFICER. The Sen- joined by a new Senator from Ne- I think of JOHN WARNER and his gen- ator from Virginia. braska, CHUCK HAGEL. CHUCK became a tlemanly ways as I hope not a throw- Mr. WARNER. Mr. President, I thank friend, and we have worked together on back to the Senate of the past but per- my colleague for his very thoughtful a number of issues over the years. He haps an inspiration of the Senate of the remarks. Our relationship has been one also, in a weak moment, agreed to do future because his friendship tran- that included both wives. I recall an my cable show. I went to his office. We scends party label. event we attended, and immediately talked about his background; first, his There have been times in the Senate the next morning my wife received service in Vietnam, something I par- when he has proven, with his independ- from you a book which she, being an ticularly admire, the courage he ence, that he looks at issues honestly avid reader, stayed in that book for the showed in volunteering to serve in our and directly and sometimes has broken evenings that went on for a week or so. Army, and then coming together with from the ranks of his fellow Repub- That is the way this great institution his brother in the same unit and both licans when he felt it was necessary. I works. It is not all on the floor before of them under fire. Both of them served know he thinks long and hard before he the television cameras. our country in combat. He came back makes those decisions. Senator DURBIN is a strong leader, a and was a successful businessman. He There have been times when he tough adversary. I wish to say how went on to serve the people of Ne- showed extraordinary leadership dur- much I have enjoyed working with you braska and eventually to serve in the ing this contentious debate over this through these years. I wish you and my Senate. war in Iraq. He and Senator LEVIN ex- other colleagues well because you have We have worked over the years to- emplified the very best in the Senate. a great challenge in the next few days gether. I have always found him to be Even when they disagreed, they were or two. We have to solve—and you will a gentleman. His word is good, and he totally respectful of one another, they be part of that leadership team dealing has the courage to step up and take a were deferential to one another’s feel- with it, along with colleagues on this position once in a while that may not ings and interest. Yet they served the side—we have to reach the right solu- be popular, even in Nebraska. national purpose by engaging in a tion to restore America’s confidence in I know his leadership on the issue of meaningful, thoughtful debate on an the lifeblood of this Nation; namely, its the war in Iraq will be remembered be- extremely controversial issue. economics. cause, during the last 2 years when we During the course of the last several I thank the Senator. I wish to add struggled to find a way to bring this years—JOHN WARNER may not remem- that my mother very proudly always war to a close, he is one who would ber this, but I will never forget it— claimed Illinois as her State. cross the aisle and join us in an effort when I got into hot water on the floor Mr. DURBIN. Mr. President, we are to find a reasonable way to end this of the Senate for words that were spo- honored being the home of your moth- conflict in an honorable manner. I re- ken, JOHN WARNER was one of the first er’s birthplace. I failed to mention one spect him so much for that. to come to me afterward. He put an other bill that I think is so important, I have one special little measure of arm on my shoulder and said: Look, we and that is the extraordinary assist- gratitude for CHUCK HAGEL. There is a all make mistakes. Carry on. ance Senator WARNER gave to his col- bill I introduced which is as near and I know it is probably something he league, Senator WEBB, when it came to dear to me as any I considered. It is has forgotten, but I never will. I thank the new GI bill. That bill passed, and it called the DREAM Act, to give lit- him for that generous spirit and com- will dramatically improve the lives of erally tens of thousands of children passion, which I hope will be part of so many veterans and their families be- across America who came to this coun- my public service career in the future, cause we stepped forward in a bipar- try, were brought here by undocu- as has exemplified his own. He showed tisan fashion. It was the first thing mented parents, grew up as Americans, courage so many times and foresight Senator WEBB said to me as a new Sen- never knowing any other life, any that will be part of his legacy. ator was his goal, and he would be the other culture, maybe not knowing any As HARRY REID mentioned, the cour- first to add he could never have other language but English, and now age to step out in his own home State achieved it without the support of his find themselves graduating high school against all the odds and to take on a colleague from Virginia. with no country. They are told offi- member of his own party with whom he Mr. WARNER. Mr. President, how cially by American law they are not disagreed in a very public way, that thoughtful to raise that, not in the wanted or needed and asked to leave. wasn’t missed. We noticed all across context of this Senator but Senator They have nowhere to go. This is home. America that you were willing to show WEBB. I have great respect for him, They want a chance, just a chance to that kind of courage. particularly his military career, which be part of America’s future in a legal In the Senate recently, if Senator is extraordinary, where mine is of far way. BARBARA BOXER was on the floor—if less consequence. I joined him. He was This DREAM Act has been controver- she hasn’t already done it, I am sure the leader on that legislation. I always sial because it relates to immigration,

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00046 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.084 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10161 and that is not an easy issue. CHUCK honored to sit next to him and to par- fice of Professional Responsibility on HAGEL stepped up and cosponsored that ticipate in those hearings. the work they did. It is an exhaustive, legislation with me, and I will never I came to know him and his family thorough, and profound piece of inves- forget it. It meant a lot for him to and respect him. We get to see one an- tigative research. But what sticks out show that kind of courage. other in the Senate gym in the morn- more than anything else from that re- Even though we did not prevail, ing. I go there in the morning for no port to me is the fact that former someday we will, and when that day obvious reason, but I get to at least so- White House appointees refused to be comes, I will honor him on the floor for cialize with WAYNE and a number of interviewed. The former counsel, a law- his exceptional courage on this matter other colleagues. I am going to miss yer, to the White House refused to be that means so much to so many young him and wish him the very best. interviewed. The President’s political people across our country. Those Senators leaving our ranks adviser refused to be interviewed. More PETE DOMENICI leave positive memories for this Sen- than that, the White House itself re- PETE DOMENICI of New Mexico has ator from Illinois. The fact that I have fused to provide internal e-mails rel- been an institution in the Senate for been able to serve with them, know evant to this investigation to the De- many years. It has been a pleasure to them, and count them as friends, I partment of Justice. serve with him for 12. I once visited count as one of the real blessings of my We have been denied those things on New Mexico and went to a roadside service in the Senate. grounds of executive privilege, but stand where they sell these Christmas The PRESIDING OFFICER. The Sen- there is no executive privilege between wreaths made out of chili peppers. ator from Rhode Island. the White House and an executive There was a Mexican-American lady. I Mr. WHITEHOUSE. Mr. President, I agency. So there were no grounds for started to buy the Christmas wreath to had occasion to share my thoughts refusing to cooperate and refusing to take home to my family, and I said to about the Senator from Virginia before provide those materials. There was no her: So I understand you have a Sen- and do not intend to expand on those legal justification for it. They just said ator in this State named DOMENICI. Oh, remarks at this point other than to no. I love PETE DOMENICI, she said, and note that I think all of us, particularly Worse still, as the Presiding Officer went on and on about what a great man those of us who are new, very much knows, there is an office within the De- he was, how much she liked him. She feel we are graced by this institution partment of Justice known as the Of- said: You know, I am a Democrat, but and by the opportunity we have to fice of Legal Counsel—I repeat, within I am a Domenici Democrat. I always serve in it. Some of us have the oppor- the Department of Justice. The Office tunity to grace it back, and Senator voted for PETE. I think he is a good of Legal Counsel itself refused to pro- man. WARNER of Virginia has certainly done vide a document in its possession to He is a good man. He and his wife that. the Office of Inspector General and the I ask unanimous consent that at the Nancy have raised a good family. He Office of Professional Responsibility in conclusion of my remarks, the distin- has done so many things. He feels pas- this investigation. It was a triple guished Senator from Iowa, Mr. GRASS- sionate about so many issues, but the stonewall—the former White House of- LEY, be recognized. one I wish to particularly credit him The PRESIDING OFFICER. Without ficials, the White House itself, and the for leadership on is the issue of mental objection, it is so ordered. Office of Legal Counsel with respect to health parity. Mr. WARNER. Mr. President, I wish this one White House document. As a He and Paul Wellstone stood up on to express my appreciation, as always, result, the inspector general’s report that issue when nobody else would. to my good friend. This man will leave itself concludes that their investiga- Paul passed away 6 years ago in a plane his mark in this institution. I tell all tion was hampered—that is their crash. We have continued to find a way that with a great sense of pride, as will word—that their investigation was hin- to pass that bill. We still have a chance the Presiding Officer. I have come to dered—that is their word—and that in the closing hours of this session, and know him and work with him on many there were gaps left in this investiga- I hope we do. occasions. tion as a result of the failure of the In a magnanimous gesture, PETE I yield the floor. White House to cooperate and instruc- came forward and said this should be DEPARTMENT OF JUSTICE INVESTIGATIONS tion to the OLC not to produce the doc- known as the Wellstone-Domenici bill; Mr. WHITEHOUSE. Mr. President, I ument. And indeed, one of the people Paul Wellstone deserves top billing on am particularly gratified to be speak- who refused to cooperate—a former it. I am glad he did that. It showed ing about this now because you, the White House employee, former White character and the kind of man he is. distinguished Senator from Colorado, House Counsel Miers—indicated that We need to pass that bill before we go were formerly the attorney general the reason she wasn’t was because to home, not just for PETE DOMENICI and from Colorado at a time when I was the cooperate with this would be incon- the memory of Paul Wellstone but for attorney general of Rhode Island, and I sistent with White House instructions the millions of people across America just want to make a quick point. not to cooperate with Congress. counting on us to make sure victims of We all recall the very unfortunate So here is the point. Where is the At- mental illness are given fair treatment tragedy, really, that befell the Depart- torney General in this? You have been under hospitalization policies across ment of Justice as a result of ex- an attorney general; I have been an at- this Nation. He certainly deserves it. tremely unfortunate decisions made at torney general. What happens when WAYNE ALLARD the management level which cul- you are in charge of an investigation The last is WAYNE ALLARD. WAYNE minated in the forced retirement—the and your investigators are hampered ALLARD is a colleague of mine who firing, if you will—of a significant and hindered in their investigation in a made a promise to the people of Colo- number of U.S. attorneys for political way that leaves gaps in the investiga- rado that he would not run for reelec- reasons. The fallout from that disaster tion as a result of noncooperation by tion, and he kept his word. He did not has obviously been profound: the At- your own administration? What do you stand for reelection this year. WAYNE torney General resigned, the entire top do? We were elected to our positions as and I had an interesting responsibility, structure of the Department of Justice attorney general. We would have assignment, to deal with the legislative is gone, and a lengthy investigation known what to do. appropriations bill. It does not get a has taken place into what happened. I think this is a very important mo- lot of attention because it just deals In the last 2 days, the Office of In- ment in the history of the Department with Capitol Hill and the people who spector General at the Department of of Justice. It is a contest of wills be- work here. But this Nation’s Capitol is Justice and the Office of Professional tween the White House refusing to co- a great American treasure. WAYNE Responsibility of the Department of operate and the Department of Justice took it so seriously. He held more Justice have released their report. It is going about its legitimate investiga- thoughtful hearings about this Capitol about this big—it is 348 pages, I think— tive function. I think the Attorney and the new Capitol Visitor Center. He and I have been through it. General has an important role. I think asked the hard questions and did it in First of all, I want to compliment the it is vital for the Attorney General to a respectful, gentlemanly way. I was Office of Inspector General and the Of- stand with his investigators, with his

VerDate Aug 31 2005 03:09 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00047 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.085 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10162 CONGRESSIONAL RECORD — SENATE September 30, 2008 Office of Inspector General, and with growing number of uninsured, to add to Here’s the only problem: Your employer his Office of Professional Responsi- other negative aspects of the present now has to pay taxes on health care that bility. I think he has no choice, with- tax treatment of health insurance. you’re getting from your employer. out doing lasting damage to the De- Congress needs to take a very hard I am taking the floor now to tell the partment of Justice and creating for- look at the Tax Code when it takes up junior Senator from Illinois and his ever the precedent that when it comes health care reform. Democratic colleagues, and especially to the investigative responsibilities of There are a number of ways to struc- the American people, that Senator the Department of Justice, White ture a proposal that would change the OBAMA’s description of his rival’s pro- House participation is optional, even tax treatment of health insurance. posal is inaccurate. Employers—and I when the investigation leads into the Today, I wish to talk about the way emphasize this—will not pay taxes on White House. That is an admission by Senator MCCAIN structures his pro- the health insurance they offer to their the Department of Justice at the high- posal to change the tax treatment of workers. est level, by the Attorney General him- health insurance. The reason I want to I want to discuss how this issue is self, that the White House is above the do this is because, as the senior Repub- playing out in the media. Here is one law in this country, which I don’t lican tax writer, it is my obligation to instance. This past Sunday, on ABC think is the right answer. set the record straight. ‘‘This Week,’’ Senator MCCAIN was I haven’t been in that position. I For too many weeks, I have heard in- interviewed. In the interview, Senator know it is a tough call. But other At- accurate statements made about MCCAIN was asked about the accuracy torneys General have been in that posi- McCain’s proposal for a tax credit for of Senator OBAMA’s claim that the tion and they have faced that tough health insurance proposals, and I have McCain proposal for the tax credit for call. Just recently, we learned that At- heard them from mostly Democrats. health insurance would ‘‘tax health torney General Ashcroft was prepared For example, my friend, the senior benefits for the first time by taking to resign in a similar face-off with the Senator from Illinois and the majority away the deduction that employers White House. Backed by Deputy Attor- whip, was on the floor of this Chamber now get to provide health benefits.’’ ney General Comey and others in the on Thursday, September 11, saying Here are the facts: The McCain plan Department and faced with that stern that ‘‘Senator MCCAIN will tax Ameri- does not—I repeat, does not—take resolve by those men, the White House cans’ health insurance.’’ The very next away the employer deduction. blinked and backed down. So the ques- day, the junior Senator from Ohio, in Employers will not pay taxes on tion now is, Does Attorney General an exchange with the majority whip, health benefits. Businesses will con- Mukasey have that same stern resolve also said that Senator MCCAIN ‘‘wants tinue to be able to deduct health care or will he be the one who blinks and to tax those health care policies that expenses as they do now, and they will backs down? He has appointed a new tens of millions of Americans have.’’ continue to be able to provide health Special Prosecutor, but we don’t know The senior Senator from Delaware has care, as they do now. what is going to happen there. also been saying Senator MCCAIN wants For employers, then, there will be no As a former attorney general, the to tax people’s health insurance—not change. No change. Finally, and most Presiding Officer knows well that could here on the floor but on the campaign importantly, Senator OBAMA’s cam- disappear into a grand jury, be pro- trail as the Democratic nominee for paign has consistently stated that the tected by Rule 6(e) secrecy of the grand Vice President. He has also been saying McCain tax credit proposal would jury, and never be heard from again. that in television interviews. The jun- ‘‘raise taxes on the middle class.’’ This could be a way to put the inves- ior Senator from Illinois consistently The left-leaning think tanks, funded tigation aside and quiet it rather than makes this explosive claim on the by the likes of George Soros and com- to see it through. But what the Attor- stump. pany, have been making that same ney General can do is march up to the Well, using the words of my distin- claim. So again I say enough. The White House and say: This noncoopera- guished friend: Enough. Whether or not McCain tax credit for health care in- tion is not tolerable, it is not accept- the tax credit for health insurance pro- surance proposal would not increase able, and I will not stand for it. One of posals taxes a worker’s health insur- taxes on the middle class. To the con- two things is going to happen: Either ance, the claims that have been made trary, the proposal would provide low- the White House is going to cooperate are half-baked, and this is the reason: and middle-income workers with, get with my investigation or I am going to The critics of the McCain plan fail to this, a tax cut. But do not take my resign. mention a key component of his pro- word for it. I would like to have you That is the position the Attorney posal. That key component is that Sen- listen to the Tax Policy Center, a non- General is now in. ator MCCAIN would provide every partisan think tank that has received Winston Churchill used to talk about American who purchases health insur- notoriety for analyzing the tax plans of the fine agate points on which great in- ance a tax credit. Senator MCCAIN and Senator OBAMA. stitutions and history turn. I think At- It appears that the critics overlook— The Tax Policy Center illustrates torney General Mukasey is at one of or maybe they just don’t understand— that the McCain tax credit for health those points, and the question for him that the tax credit provides a bigger insurance produces a tax cut for work- now is, Do you blink or do you stand tax benefit to people than they would ers. Len Burman, director of the Tax with your investigators? receive under the current system. So Policy Center, said, ‘‘It is mostly a tax Mr. President, I thank the distin- people would be better off under the break,’’ when he was interviewed by guished Senator from Iowa. I said I McCain plan. Don’t the critics want to CBS News on September 15. would be brief, and I was only margin- help lower and middle income workers I ask unanimous consent to have the ally brief. Perhaps by Senate standards better afford health insurance? Don’t CBS News report printed in the I was brief but not by real standards, they want to help the uninsured? Sen- RECORD. and I appreciate his patience. ator MCCAIN is on the side of these The PRESIDING OFFICER. Without I yield the floor. Americans, while his critics are favor- objection, it is so ordered. The PRESIDING OFFICER. The Sen- ing the status quo. (See Exhibit 1.) ator from Iowa. Another false claim I have heard is Mr. GRASSLEY. The bottom line, TAX TREATMENT HEALTH INSURANCE that the tax credit proposal would the McCain tax credit for health insur- Mr. GRASSLEY. Mr. President, I ‘‘deny the deduction employers can ance would not affect the employers’ want to visit with my colleagues for a take when they pay for all or a portion business deduction nor would employ- bit about the tax treatment of health of their employees’ health insurance.’’ ers pay taxes on health insurance. The insurance. Republicans and Democrats Again, that is flat wrong. Even Senator proposal would not raise taxes on the who have studied the issue agree that OBAMA has said that employers will middle class, rather it would provide a the current tax treatment of health in- pay taxes on health insurance under tax cut for the middle class. surance is inequitable. Others believe the McCain plan. Finally, while the proposal taxes our current tax rules increase health In the recent Presidential debate, my workers’ health insurance, Senator care spending and contribute to the friend from Illinois said: MCCAIN is providing the same workers

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00048 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.086 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10163 with a tax credit, which is a bigger tax er receives, and you find out it is $4,200 laws, these people generally do not get benefit than low- and middle-income a year, a great amount of inequity. a tax benefit. The McCain tax credit workers receive under our current sys- We have to ask ourselves, is it fair for health insurance proposal would tem. that low- and middle-income workers give these people a meaningful tax ben- I am going to slow down. Let me ex- receive a smaller tax benefit for health efit and do it for the very first time. plain how health insurance is currently insurance than upper income workers The tax credit could be used by the in- taxed. And the reason is because it is receive? dividual to reduce the cost of their vitally important that my Senate col- Now, what is the employer business health insurance. In this case, the indi- leagues and my friends in the media deduction? Here an employer paying vidual would not be required to spend understand the current rules governing for all or a portion of its employees’ as much of their own hard-earned the taxation of health insurance. To be health insurance can deduct the money on health insurance as they do clear, there are very distinct tax rules amounts they pay as ordinary and nec- under the current system. that apply to, one, an individual pur- essary business expenses, no different If the tax credit exceeds the pricetag chasing their health insurance; two, an than the employer can deduct wages. of the individual’s health insurance employer paying for all or a portion of In essence, the Tax Code treats em- policy, the excess may be used for its employees’ health insurance; and, ployer contributions for health benefits other health care expenses. You could three, workers purchasing insurance as compensation. This is consistent use it like for copays or deductibles. through their employer. with how economists view employer Now we get to the most important Unfortunately, most people mix up contributions for health benefits. It is part. I am going to explain how work- these three different kinds of tax rules. as simple as that. ers will be affected by the McCain tax For example, far too often I have heard It is important to note that the em- credit for health insurance. I would people get the employee exclusion, ployer business deduction is a tax ben- like all of my colleagues, whether you which I will explain in a moment, con- efit provided to the employer. So we are Republican or Democrat, and par- fused with the employer business de- put the original chart back up. I did ticularly my friends in the media, to duction. So I have a chart that lays it not want to leave out another very im- pay close attention because the senior out. Employee exception and employer portant tax benefit for health insur- Senator from Arizona has structured business deduction is not equal. Em- ance, or should I say, the lack of a tax his tax credit for health insurance in a ployee exclusion is for the worker; em- benefit. I am speaking about the fact very unique way. ployer business deduction is for the that people who purchase their own Let’s get back to the basic. As I stat- employer. health insurance generally do not re- ed, health insurance that a worker pur- The employee exclusion is there. ceive a tax benefit under our current chases through his or her employer is Well, a worker purchasing health care laws. not taxable to the worker. Again, this through his or her employer does not They could if they were self-em- is referred to as the employee exclu- pay income or payroll taxes on the cost ployed, but I am talking about people sion. The exclusion, however, has two of the health insurance policy. not self-employed or not otherwise em- parts. So we will look at a new chart. In other words, the amount of health ployed or employed where they do not No. 1, the worker does not pay in- insurance coverage that is paid for by have health insurance, and you want to come taxes on the cost of coverage; the employer is excludable from in- buy it on your own. In this case, the in- and, two, the worker does not pay pay- come. This means that the cost of the dividual purchases his or her own in- roll taxes on the cost of coverage. Very employer-provided health insurance is surance with aftertax dollars out of clear on the chart. The proposal ad- not taxable for income or payroll tax their own pocket. These individuals are vanced by my friend from Arizona purposes. able to deduct medical expenses that would maintain the payroll tax exclu- In addition, the amount of the health exceed 7.5 percent of their adjusted sion. So let me repeat. The cost of insurance coverage that is paid for by gross income, but only if the individual health insurance a worker gets through the individual worker on their own be- itemizes their return. And exceeding their employer would not be taxed for half through a salary reduction ar- the 7.5 percent of gross income to get payroll tax purposes. This goes for the rangement reduces the worker’s tax- an income tax deduction for health employer as well. able income. This means that a worker care and health insurance is not very That is why I have emphasized that has less income on which to pay in- common. That is why only about 6 per- the employers do not pay any taxes come and payroll taxes. cent of all tax returns claim the deduc- under the McCain plan. With regard to As the chart says, the employee’s ex- tion above that 7.5 percent. income taxes, Senator MCCAIN converts clusion is the tax benefit provided to Let’s now turn to how changing the the current income tax exclusion into a the worker. Let’s drill down on the em- current tax rules in the same manner, tax credit. Let me say it another way. ployee exclusion for a moment. I want as contemplated by Senator MCCAIN, The McCain tax credit for health insur- to explain how this tax benefit works. would affect people and would affect ance proposals does not eliminate the Tax 101 teaches us that the tax ben- employers. I want to explain to my income tax exclusion. Instead, the in- efit that you get from a tax exclusion, friends who are critics, and I have told come tax exclusion is converted to a just like a tax deduction, is based on you who those Senators are, and my tax credit. the tax bracket you are in. This means friends in the media, how the McCain So here, let’s go back to tax 101. As I if you are in a high tax bracket, you re- tax credit for health insurance would discussed earlier, tax 101 teaches us ceive a bigger tax benefit than some- actually work. that a tax exclusion, just like a tax de- one in a lower tax bracket. So it is We can quickly cross the impact any duction, is tied to your tax bracket. A very regressive. changes would have on employers off tax credit, on the other hand, is not Here is a chart that illustrates how the list right away. The reason: As I tied to your tax bracket. Rather, the regressive the current employee exclu- have said two or three times, employ- tax credit reduces your tax liability sion of the cost of employer-provided ers will not be affected, contrary to dollar for dollar. This means that, by health insurance really is. what several Senators have said criti- definition, a tax credit is more valu- So we have a new chart. Take a look cizing the health insurance plan of able to a lower-income taxpayer. So if at it. Here we assume that the average Senator MCCAIN. Everyone needs to un- you were to convert the income tax ex- cost of a family’s health insurance pol- derstand this key fact because the crit- clusion into a tax credit, you would ef- icy would be about $12,000. After all, ics keep getting it wrong. fectively be increasing the tax benefits the coverage that Members of Congress In other words, let me say for a for low-income workers. get costs around $12,000. So this ought fourth or fifth time: Employers will Depending on the dollar amount of to be a good number to use. As you can not be affected by how the McCain tax the tax credit, this would also be true see, a worker in the 10-percent tax plan works. for middle-income workers as well. So bracket would receive 1,200 dollars’ Let’s talk about individuals pur- this is what I am saying: I am saying worth of benefits. Compare this with a chasing their own health insurance. As the McCain tax credit for health insur- tax benefit that an upper income work- I mentioned, under the current tax ance is effectively increasing the tax

VerDate Aug 31 2005 01:37 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00049 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.087 S30SEPT1 wwoods2 on PRODPC68 with SENATE S10164 CONGRESSIONAL RECORD — SENATE September 30, 2008 benefit for low- and middle-income I hope my friends on the other side Unfortunately, we have not provided workers. I am saying the McCain tax and those in the media have heard me. rail travel the funding it needs to truly credit makes the tax treatment of I hope they work on getting it right be- flourish. Every year since 2002 Amtrak health insurance more equitable be- cause it is clear, No. 1, that the McCain has had to scrape by and continue oper- cause every worker is receiving the tax credit for health insurance pro- ations on a yearly basis without ade- same tax benefit. duces a tax cut for workers; two, that quate funds to maintain the rail sys- How can some of my friends on the the McCain tax credit for health insur- tem over the long haul. The system is other side oppose making the current ance provides a tax benefit to people at a breaking point. Amtrak’s equip- tax treatment of health insurance purchasing their own insurance and ment is aging and no amount of main- more equitable? Do my friends not doing this for the very first time; and, tenance can keep old equipment in want to help out low- and middle-in- three, that the proposal does not ad- come workers? Let me show my col- versely impact employers in any way, service forever. leagues and my friends in the media shape, or form. And our rail infrastructure is at the how the McCain tax credit for health EXHIBIT 1 breaking point at a time when our citi- insurance produces a tax cut. [From CBSNews.com] zens need this system the most. In July Under the proposal, the health insur- THE TRUTH ABOUT MCCAIN AND INSURANCE Amtrak had more passengers than in ance a worker purchases through his or TAXES any month in its 37 year history. But her employer would be taxed like com- WASHINGTON, SEPTEMBER 15, 2008.—It’s one Amtrak is not just a transportation pensation for income tax purposes. of the most explosive and important polit- system that serves 25 million people ical charges of the election: ‘‘He wants to tax But, unlike compensation paid in the each year. Amtrak is also an economic form of taxes, the proposal would not your health benefits,’’ Barack Obama said. Obama’s charge was that that John engine that creates jobs, fights sprawl, subject the cost of employer-provided McCain wants to tax the health insurance health insurance to payroll taxes, as I and fosters economic activity. I know benefits. Americans buy through employers, firsthand the benefits of Amtrak be- have discussed. This means that CBS News correspondent Wyatt Andrews re- amount of taxes a worker would be re- ports. cause over one hundred thousand New quired to pay on the cost of their ‘‘That’s a $3.6 trillion tax potentially in- Jersey commuters depend on Amtrak’s health insurance would only depend on crease on middle class families,’’ Obama infrastructure every day. the worker’s income tax bracket. said. ‘‘That will eventually leave tens of mil- lions of you paying higher taxes.’’ Some critics want Amtrak to be the Under the proposal, the worker would John McCain wants a multi-trillion dollar only major transportation system in apply the tax credit against the new in- tax on the middle class? Here are the facts. the world that operates without gov- come tax liability that is generated Obama has the tax part correct, but the ernment subsidy. This prompts a ques- impact on the middle class is exaggerated— from taxing the worker’s health insur- tion. Do we ask roads to pay for them- ance. most people will see tax cuts. In other words, the tax credit would McCain has proposed to end one of the selves? Some of my colleagues like to offset any new income tax liability. As largest tax breaks in the entire economy. think that gas taxes pay for roads, but Some 60 million Americans buy health insur- illustrated in this chart, because the this has never been the case. The Texas ance thru employers tax-free, and McCain Department of Transportation recently new income tax liability would be less would indeed begin to tax the value of the than the tax credit, the worker would benefit. revealed that not a single road in actually receive a tax cut. However McCain also proposes to give the Texas has ever been fully paid for by a So let’s take a closer look at the money back as a tax credit, $2,500 for indi- gas tax and most roads recoup less chart. We have several different brack- viduals, $5,000 for families. ‘‘Let’s give them than half their costs from the gas tax. ets. Let’s assume a family of four pur- a $5,000 refundable tax credit to go out and get the health insurance of their choice,’’ Asking transportation to pay for chases a family health insurance policy McCain said. ‘‘It’s mostly a tax break,’’ said itself is a standard that is simply im- of $12,000 through its employer. Under Len Burman of the Tax Policy Center. possible to meet and a standard we do the proposal, this family would pay in- The non-partisan Tax Policy Center says not hold any other mode of transpor- come taxes on a $12,000 policy. Let’s as- except for the very richest Americans, most sume this family would be in the 25- people buying insurance will see a tax cut. tation to. Over the last 35 years we percent tax bracket. This family would ‘‘Families at all income levels would pay have spent less money on Amtrak than lower taxes, at least on average,’’ said Bur- pay $3,000 in additional income taxes. we will on highways in this year alone. man. ‘‘On average, is about a $1,200 tax cut in When you factor in State and local sub- This new tax liability would be offset 2009.’’ by a $5,000 tax credit for family health On the issue of energy, meanwhile Gov sidies for infrastructure and parking insurance. As a result, $2,000 would be Palin touts her energy expertise based on some studies suggest that up to 8 per- left over. This means the family would Alaska’s production. cent of our gross national product is receive a $2,000 tax cut. This is a tax ‘‘My job has been to oversee nearly 20 per- spent on subsidies for automobile use. cent of the U.S. domestic supply of oil and cut that would be greater if a family gas,’’ she said. This bill will not give all the funds I purchased even less expensive cov- Here are the facts: According to the En- think Amtrak deserves or needs to erage. ergy Department, Palin’s numbers are high. meet its full potential, but I think this As we can see, the tax credit for Alaska provides 14.3 percent of America’s legislation finally authorizes the fund- health insurance produces a tax cut for crude oil, and only 2.6 percent of its natural all workers. The tax cut is progressive gas. You can check out the Energy Informa- ing Amtrak needs over the next 6 years because workers in the 10-percent tion Administration statistics here. to plan ahead, adequately fund its op- On the health care debate, the Obama cam- erations and finance some critical cap- bracket are receiving almost five times paign tells CBS News that one day, the mid- the tax cuts for the workers in the 35- dle class will be hit by a McCain tax in- ital improvements. But these funds are percent tax bracket. crease—but the experts CBS News consulted not free. You can see again, by looking at the said that day is 10 years away. The bill requires Amtrak to tighten chart, that a worker in the 10-percent Mr. MENENDEZ. Mr. President, I its belt while simultaneously improv- tax bracket would receive a $3,800 tax rise in support of the Passenger Rail ing service. The bill requires reforms cut, compared to the tax cut for an Improvement and Investment Act and that will reduce Amtrak’s operating upper income worker in the 35-percent the rail safety bill. costs by 40 percent. In addition, the bill tax bracket of $800. I thank Senator LAUTENBERG, the provides funds for States to provide Like most campaign-related pro- senior Senator from New Jersey, for posals, there are a number of questions being a tireless advocate for rail travel new passenger rail service between cit- of how the idea will impact people in and for successfully shepherding these ies. In some instances these State oper- the long run. As the senior Republican two essential bills to the floor and ations will likely provide service that tax writer, I will ask these questions. If hopefully to final passage. In a time of complements existing Amtrak service I determine that Congress needs to high gas prices, rising air fares, in- just as the recent light rail projects in tweak the proposal here or there to im- creasing traffic congestion and con- New Jersey have done. But in other prove it, I will recommend that we do cerns about greenhouse gas emissions, cases these funds may actually create so. But only time will tell whether we rail travel can give Americans a sen- competition for Amtrak for service be- have to undertake such an exercise. sible alternative mode of travel. tween some cities. And this bill will

VerDate Aug 31 2005 03:09 Oct 01, 2008 Jkt 069060 PO 00000 Frm 00050 Fmt 4637 Sfmt 0634 E:\CR\FM\G30SE6.088 S30SEPT1 wwoods2 on PRODPC68 with SENATE September 30, 2008 CONGRESSIONAL RECORD — SENATE S10165 also require Amtrak to use its re- pled our aviation sector, our Nation re- waste. That is why I am working with sources to provide a new level of serv- lied heavily on trains to make up the Senator ENSIGN to keep nuclear waste ice that improves on-time perform- shortfall. This illustrates just how im- on-site at the powerplants where it is ance, upgrades on-board services, and portant a safe, efficient, well-operated produced in secure dry cask storage provides easier access to other trans- rail transportation network is to all containers that are approved by the portation systems. aspects of our nation’s well-being— Nuclear Regulatory Commission. This The Amtrak bill has also been com- from commercial and economic capac- plan is safer, more cost effective, and bined with critical rail safety legisla- ity to national security. will give us at least a century to find a tion that would strengthen our rail- With record high gasoline prices, con- more permanent solution to nuclear road security apparatus by investing gested highways and airports that are waste. $1.6 billion in critical transportation experiencing record delays, we need all f safety initiatives. of the alternative forms of transpor- Tragically, we learned just over 2 tation we can provide to the frustrated RULE XLIV COMPLIANCE weeks ago how important railroad safe- American traveler. I urge my col- Mr. BINGAMAN. Mr. President, there ty is when a Metrolink commuter train leagues to recognize that a strong, are over 150 public land bills on the plowed head-on into a Union Pacific well-funded and safe rail system is es- Senate calendar that have been re- freight locomotive just outside of Los sential to our country. Please join me ported from the Committee on Energy Angeles. Twenty-five people lost their in voting for this critical bill. and Natural Resources during the 110th lives and over 135 people were injured I yield the floor and suggest the ab- Congress, for which we have not been in the deadliest train crash this nation sence of a quorum. able to get unanimous consent to take has seen in 15 years. The PRESIDING OFFICER (Mr. up and pass. In an effort to try to fa- Every one of those 25 Americans MENENDEZ). The clerk will call the roll. cilitate their consideration by the Sen- woke up and got ready for work that The legislative clerk proceeded to ate in the limited time remaining in Friday morning just like any other call the roll. this session, I have assembled them day. Mothers and fathers kissed their Mr. SALAZAR. I ask unanimous con- into a single amendment, SA 5662, to children goodbye after breakfast, never sent that the order for the quorum call the Monongahela National Forest Wil- assuming this would be the last time be rescinded. derness Bill, H.R. 5151. I filed the they would see their loved ones. Week- The PRESIDING OFFICER. Without amendment last Friday, September 26, end plans were made—but were never objection, it is so ordered. and it has been printed in the RECORD fulfilled. That fateful Friday morning f at S9731–S9840. not only ended the lives of these 25 Paragraph 4 of rule XLIV of the YUCCA MOUNTAIN RADIATION Americans, but took away 25 mothers Standing Rules of the Senate provides STANDARD and fathers, sons and daughters, broth- that ers and sisters from family members Mr. REID. Mr. President, today If during consideration of a bill, . . . a Sen- who will never be the same. President Bush took time away from ator proposes an amendment containing a When people board a train in the dealing with the Nation’s economic cri- congressionally directed spending item . . . , morning on their way to work, they de- sis to direct his Environmental Protec- which was not included in the bill . . . as serve to have peace of mind that they tion Agency, EPA, to release a new placed on the calendar or as reported by any will reach their destination safely. standard for ‘acceptable’ public radi- committee . . . , then as soon as practicable, the Senator shall ensure that a list of such This legislation would take significant ation exposure from the Yucca Moun- items . . . is printed in the CONGRESSIONAL tain nuclear waste dump. In other steps to give the American people this RECORD. peace of mind. It ensures that railroad words, the agency decided just how The term ‘‘congressionally directed officials have the resources and tools much radiation you and I can live with. spending item’’ is broadly defined to to do their job safely and effectively by Let me be clear, there is no way this include implementing training standards for weak standard will breathe life into all safety-related railroad employees the Bush-McCain plan to dump nuclear a provision . . . included primarily at the waste in Nevada. Instead, it will breath request of a Senator . . . authorizing . . . a and requiring train conductors be cer- specific amount of discretionary budget au- tified that they are up to speed with life into more litigation against this thority . . . for . . . expenditure with or to the newest systems in place. terrible project. an entity, or targeted to a specific State, lo- The bill also reforms hours-of-service The EPA has collaborated with the cality or Congressional district, other than requirements for crews and signal em- Department of Energy, DOE, to tweak through a statutory or administrative for- ployees so that these critical workers a standard that a Federal court of ap- mula-driven or competitive award process. are at their sharpest and most alert peals threw out in 2001 because it failed Although no Senator has specifically while on duty. In addition to these to comply with the Energy Policy Act requested me to include a congression- measures designed to reduce human of 1992 and would have left Nevadans ally directed spending item in SA 5662, error, we must also address the short- dangerously unprotected against radio- in the interest of furthering the trans- comings in our rail infrastructure. active contamination. If the repository parency and accountability of the leg- Crumbling tracks, deteriorating at Yucca Mountain was ever actually islative process, I have posted a list of bridges, and failing signals create an built, the DOE does not deny that the specific authorizations in SA 5662 environment where it is only a matter water infiltration would eventually on the Web site of the Committee on of time before the next rail disaster corrode nuclear waste packages and ra- Energy and Natural Resources. The list strikes. This legislation fills many of dioactivity will inevitably leak into includes the name of the principal these gaps by authorizing millions of Nevada’s ground water. Instead of sponsors of the Senate bills that have dollars for critical improvements to in- working to protect Nevadans from a been incorporated in the amendment. frastructure and safety features to public health catastrophe, this scandal- In the hope that the Senate might make our rail network as safe as pos- ridden EPA has chosen to simply make yet be able to consider this important sible. the rules more lenient so DOE can le- amendment before we adjourn, I ask This bill also ensures that safety gally dump waste less than 100 miles unanimous consent that the list be rules are strictly adhered to by outside of Las Vegas. This is unaccept- printed in the RECORD in accordance strengthening the Federal Railroad Ad- able. with rule XVIV. ministration’s enforcement tools and Instead of working to protect the There being no objection, the mate- increasing the penalties for safety vio- health and safety of Nevadans, EPA rial was ordered to be printed in the lations. and DOE are casting science aside in an RECORD, as follows: It is important to remember that our attempt to get the nuclear waste dump S.A. 5662—THE OMNIBUS PUBLIC LAND MAN- railroad network is not just critical to approved. Instead of warring against AGEMENT ACT OF 2008 TO H.R. 5151 THE WILD commerce and transportation but to science, I side with Nevadans and ex- MONONGAHELA WILDERNESS ACT national security as well. When the perts who support safe and attainable Provisions in Senate Amendment 5662 au- terrorist attacks on September 11 crip- solutions to our Nation’s nuclear thorizing appropriations in a specific amount

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