House Proceeding 03-19-09 on Mar 19th, 2009 :: 0:57:40 to 1:17:40
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0:56:25 to 0:57:40( Edit History Discussion )
Speech By: Michelle Marie Bachmann

0:57:30 to 0:57:40( Edit History Discussion )

Michelle Marie Bachmann: yesterday in financial services committee, mr. lid didisclosed the -- mr. ldy disclosed the chair knew about the bonuses and

0:57:41 to 0:58:03( Edit History Discussion )

Jason Chaffetz: acquiesced to them. we're finding out that mr. somers also knew about these several weeks ago. we need an investigation and ne answers. the speaker pro tempore: the gentleman from mork. -- from new york. mr. rangel: i have only one more speaker, i'll reserve the balance of my time. gentleman from michigan. mr. camp: i yield one minute to

0:57:45 to 0:59:00( Edit History Discussion )
Speech By: Jason Chaffetz

0:58:04 to 0:58:25( Edit History Discussion )

Jason Chaffetz: the gentleman from utah. >> thank you, mr. speaker. we heard a question about whether the freshmen were engage. are you kidding me? seriously. we've been here in this body, i'm a freshman, i didn't create the problem but i'm here to help clean it up. and the idea, there was no sense that the freshman had an idea

0:58:26 to 0:58:46( Edit History Discussion )

Jason Chaffetz: because they come from the republican side of the aisle, it is not in the spirit of this body to make a question about whether or not we're going to be participants in this. absolutely the republicans have suggestions. we've been excluded from this process. we werpromised time and time again we'd have time to see and read bills a that has not happened. i would encourage both sides of

0:58:47 to 0:59:00( Edit History Discussion )

Jason Chaffetz: the aisle but especially my friends on the democratic side of the aisle to st true to their word and actually engage and allow us to participate in the dialogue that should be in the best interests of the united states of america and in this body. again, i didn't create this

0:59:01 to 0:59:22( Edit History Discussion )

John B. Shadegg: mess, but i am here to help clean it up. any suggestion that says that we didn't know there was a bill the speaker pro tempore: the gentleman's time is expired. members are reminded to direct their remarks to the chair. the gentleman from michigan. mr. camp: i yield one minute to the distinguished gentleman from arizona. the speaker pro tempore: the

0:59:05 to 1:00:30( Edit History Discussion )
Speech By: John B. Shadegg

0:59:23 to 0:59:47( Edit History Discussion )

John B. Shadegg: gentleman is recognized for minute. >> i thank the gentleman for yielding and it occurs to me once again the democrats in this house are acting in haste anwe there are questions that deserve to be answered. secretary geithner began the week saying he had only known about these bonuses for roughly a week and a half.

0:59:48 to 1:00:08( Edit History Discussion )

John B. Shadegg: yet yesterday, ed liddy, the chairman, said the federal reserve was told about the bonuses when the first bailout by the federal reserve occur. where was mr. geithner? how come he didn't ask? if he didn't know back then when the bailout occurred, it seems to me he should have known. now flash forward to again, yesterday, not just mr. liddy

1:00:09 to 1:00:30( Edit History Discussion )

John B. Shadegg: places doubt on what mr. geithner claims, but no less than senator dodd who says in february he put the money in the bill at the quoff the treasury department, who was the head of e treasury department at that point in time? it was secretary geithner. i would suggest that geithner wants us to believe that when he was at fed he neither knew nor should have known and didn't and

1:00:31 to 1:00:51( Edit History Discussion )

Dave Camp: then when he was head of the treasury and the language was put in by the secretary of the treasury, he neither knew nor i think there are questions that mr. geithner needs to answer before we're asked to vote on this bill. the speaker pro tempore: the gentleman's time is expired. the gentleman from new york. mr. rangel: i reserve the balance of my time. the speaker pro tempore: the gentleman from michigan.

1:00:35 to 1:01:15( Edit History Discussion )
Speech By: Dave Camp

1:00:52 to 1:01:13( Edit History Discussion )

Dave Camp: mr. camp: is the gentleman prepared to close. mr. rangel: one last speaker, i am he. mr. camp: i would yield myself the balance of our time. the speaker pro tempore: the gentleman from michigan is recognized for reremaining 2 1/2 minutes. mr. camp: just briefly, we have a chance to do the right thing by those who acted right, who went to work every day, paid

1:01:14 to 1:01:15( Edit History Discussion )

Dave Camp: their taxes and did nothing wrong.

1:01:16 to 1:01:37( Edit History Discussion )

Charles B. Rangel: that is the american taxpayer. this should get it back. i urge support for this legislation. and i yi my time. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from new york. mr. rangel: i thank the remarks of the other side i appreciate and have a great deal of respect for those members that want to inquire about how these

1:01:20 to 1:02:45( Edit History Discussion )
Speech By: Charles B. Rangel

1:01:38 to 1:02:00( Edit History Discussion )

Charles B. Rangel: contracts came about, who knew what and when did they know it. the ways and means committee has no jurisdiction over these questions, whether they're valid or not. the real question is, do you really believe that people who did this damage to our families to our community, to our country, and indeed the world, deserve a bonus?

1:02:01 to 1:02:22( Edit History Discussion )

Charles B. Rangel: if you want to know whether it's 90% or 100% or whether the state and local governments get the 10%, that's another question. but what we are saying, and we're not always right, but what we're saying is that the american people do not want their taxpayers' money paying for bonuses of people who have

1:02:23 to 1:02:46( Edit History Discussion )

Charles B. Rangel: caused such destruction. to that, we have unanimity. at the end of the day, when we put this on the suspension calendars, because we didn't think it was controversial. we didn't think it was a democratic idea, a r idea. we thought you felt the frustration of your constituents in saying, stop the thievery at

1:02:47 to 1:03:08( Edit History Discussion )

Mike Ross: taxpayers' expense. this has been going , no one can deny this will not happen. i urge you to vote for this bill for the american people. the speaker pro tempore: the question is, will the house suspend the rules and pass h.r. 1586. those in favor say aye. those opposed, no. in the opini

1:02:50 to 1:03:30( Edit History Discussion )
Speech By: Mike Ross

1:03:09 to 1:03:30( Edit History Discussion )

Mike Ross: being in the affirmative, the rules are suspended -- for what purpose does the gentleman from mr. camp: i request the yeas and nays. the speaker pro tempore: all those in favor of taking this vote by the yeas and nays ll rise and remain standing until counted. a sufficient number having risen, the yeas and nays are

1:03:31 to 1:03:51( Edit History Discussion )

ordered. pursuant to clause 8 of rule 20 and the chair's prior announcement, further proceedings on this motion will be postponed. mr. rangel: mr. speaker. the speaker pro tempore: for what purpose does the gentleman from new york rise? mr. rangel: i ask unanimous consent that all members have five legislative days in which to revise and extend their remarks and include extraneous

1:03:52 to 1:03:59( Edit History Discussion )

material on h.r. 1586. the speaker pro tempore: without

1:09:57 to 1:10:17( Edit History Discussion )

the speaker pro tempore: for what purpose does the gentleman from massachusetts rise? mr. frk: mr. speaker that the house suspend the rules and pass house concurrent resolution 36. the speaker pro tempore: the clerk will report the title of the concurrent resolution. the clerk: house conresolution 36. concurrent resolution

1:10:18 to 1:10:38( Edit History Discussion )

expressing the sense of the congress regarding executive and employee bonuses paid by a.i.g. and other companies assisted with taxpayer funds provided under the troubled assets relief program of the secretary of thereasury. the speaker pro tempore: pursuant to the rule, the gentleman from massachusetts, mr. frank, and the gentleman from new jersey, mr. garrett, each will control 20 minutes. the chair recognizes the gentleman from massachusetts.

1:10:39 to 1:11:01( Edit History Discussion )

Barney Frank: mr. frank: mr. speaker, i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. frank: there is a great deal of anger in the nation and it is reflected in this house, which is representative of the nation about retention bonuses given to people who worked at a.i.g. situation, mr. speaker, strike

1:11:00 to 1:15:50( Edit History Discussion )
Speech By: Barney Frank

1:11:02 to 1:11:23( Edit History Discussion )

Barney Frank: me as a form of legalized extortion. these are not performance bonuses. i was unclear about that and misspoke about it to some extent. these are bonuses paid solely so that people who were employed at a.i.g. would not

1:11:24 to 1:11:47( Edit History Discussion )

Barney Frank: leave a.i.g. as -- when the company was in trole. these retention bonuses go to employees who were engaged in complex financial transactions. now, it is in some these complex financial transactions that caused the company the problem. the insurance enties regulated by state insurance regulators caused no problem.

1:11:48 to 1:12:08( Edit History Discussion )

Barney Frank: in fact, they generated the resources and revenues that allowed these other people to get themselves in trouble. according tor. liddy, who was appointed to head a.i.g. after the failure initiated a decision by the federal reserve last september to lend the money and then making change in

1:12:09 to 1:12:30( Edit History Discussion )

Barney Frank: the company's management, mr. liddy said he was afraid and i believe he was sincere about it, he said that those who had knowledge of these complex financial transactions would leave the company and in fact use their knowledge that would be adverse to the company.

1:12:31 to 1:12:53( Edit History Discussion )

Barney Frank: that is a very sad commentary on them. these are people who were engaged in these transactions the effect of which was to put the company in trouble. and we are told they have to be bribed not to abandon the company when they are in trouble. i believe the best way to get out of the hole that those people dug was to let them get

1:12:54 to 1:13:14( Edit History Discussion )

Barney Frank: extra pay for wielding the shovel. i believe there could have been other people hired. we are told that a.i.g. failed to know they had to pay the bonus. i believe that's a very grave error. my preference is that they

1:13:15 to 1:13:35( Edit History Discussion )

Barney Frank: bring a lawsuit on behalf of the u.s. as the shareholder so that we can recover here. that is, it is not a case of us as a regulator intruding on a contract on others. that is the case that we are the major owners of the company, and i believe it is a grave error to enrich people

1:13:36 to 1:13:57( Edit History Discussion )

Barney Frank: who have apparently threatened to leave the company and abandon it and n help them get out of the problems they created unless they are given these bribes called retention bonuses. we have a resolution here which talks about several things. first, it does express our determination to prevent these

1:13:58 to 1:14:22( Edit History Discussion )

Barney Frank: from happening in the future. we've already done some of that. we should note this provision here, this decision was made unilaterally by the federal reserve syst under a 1932 statute. there was no congressional input whatsoever into the decision last september to do this.

1:14:23 to 1:14:44( Edit History Discussion )

Barney Frank: the secretary of the treasury, secretary paulson and mr. banky decided to give a loan of $85 billion to this company. -- bernanke decided to give a loan of $85 billion to this company. at that point we said among other things there have sob some restrictions on the compensation pay.

1:14:45 to 1:15:05( Edit History Discussion )

Barney Frank: now, we didn't get all of the restrictions we wanted because we were in negotiation process but it was instructive when the fed did it on its own with the secretary of treasury's support there was no restrictions on compensation. two days later we immediately raised that and got a debate and got some of them. now, we have gone further. i will make this contrast. we have a.i.g. without any

1:15:06 to 1:15:27( Edit History Discussion )

Barney Frank: restrictions. under the tarp program, which congress voted and which is now being administered by the current administration, we have not only imposed restrictions, we are now being criticized in the press and by some of the recipients for being too tough on them. in "the new york times" last week there was a front-page articlehat said the banks are

1:15:28 to 1:15:49( Edit History Discussion )

Barney Frank: going to have to give the money back because there is too much pressure to make loans. there was an article i"the washington post" three days ago making the same point. i recognize the criticism. i recognize the point that we have become very tough. the probleis these b were granted under the authority that the federal reserve gave before we were

1:15:50 to 1:15:50( Edit History Discussion )

Barney Frank: able to put on the reing

1:15:51 to 1:16:11( Edit History Discussion )

strixs. this resolution is a beginning of -- restrictions. this resolution is a beginning of something new. we hope we will recover the bonuses that have already been made and there are other legislative vehicles. i hope the committee on financial services will mark up

1:16:12 to 1:16:32( Edit History Discussion )

a bill next week which will embody much of which is in this resolution. this will deal with this retroactively. this is a statement of retention, which i think is appropriate, because people in this country want to know what we are doing. it will be followed up by a markup in committee. we've had several hearings on

1:16:33 to 1:16:54( Edit History Discussion )

Spencer Bachus: the subject of compensation and a big one on a.i.g., obviously, yesterday. and we will have another a.i.g. hearing next week with the secretary of the treasury and the chairman of the federal reserve. but we will be marking up legislation next week in committee a voting on it the final week before the recess so that what we state here as our intention i hope will become law. i reserve the balance of my time.

1:16:50 to 1:20:05( Edit History Discussion )
Speech By: Spencer Bachus

1:16:55 to 1:17:16( Edit History Discussion )

Spencer Bachus: th gentleman from new jersey. mr. garrett: i thank the chair. and at this time i yield four minutes to the gentleman from alabama. the speaker pro tempore: the gent recognized f mr. bachus: i rise in strong opposition to this resolution. like the american people, i'm extremely disappointed by the recent news that a.i.g. paid millions of dollars in bonuses

1:17:17 to 1:17:39( Edit History Discussion )

Spencer Bachus: after it received a massive government bailout. we all agree that the decisions that led to the collapse of a.i.g. and the payment of large bonuses to some of the same executives who caused the collapse are indefensible. however, the legislation we vote on today arrives at

1:17:40 to 1:18:01( Edit History Discussion )

Spencer Bachus: conclusions based not on facts but rather is focused on delivering political cover to my democratic friends and clee the bill reads, it is the sense of congress that the president is appropriately exercising all the authorities granted by congress. how can we come here today