tv Democrats Criticize Trump Administrations Wall Street Policies CSPAN February 6, 2017 10:17am-11:07am EST
expose the clutter and the hilarity of the world that we're in. we all need a little more humor and it was funny. the other element is important. trump is using the media as foil to great benefit. he did it during the campaign. who believe very strongly that washington institutions need to be fixed or blown up -- they believe that the media is biased and there is a concern among trump supporters that the news media is part of what is broken in washington. so the president astutely play to that in the campaign and he has continued to do that. but i want you to understand something about donald trump. he is addicted to the media. -- s watching cable
>> good morning, everyone. on thisu for being here monday morning. i am honored to be here with our ranking member of the national services committee, maxine waters. member of the committee, mr. brad sherman from california fromongressman gonzales texas. a new member of texas -- a new member of the committee. as some of you may recall, on the night of thursday, september , denver naki said that unless we act immediately, we will not have an economy by monday. this was thursday night.
the unchecked recklessness of wall street created the worst economic catastrophe in america since the great depression. millions of americans lost their jobs, homes, savings. many families and community is bear the scars. the president wants to take us right back to that crisis. instead of fighting for hed-working families as promised in his campaign, the president and his billionaire cabinets have abandoned main street to enable corrosive profiteering of the banks on the back of hard-working americans. this administration has street firstall agenda to pad the pockets of their wall street friends. of the wall street journal today finds that the president's orders will lead to a one hundred billion dollar biggest u.s.he six
banks. a one hundred billion dollar windfall. the president has moved to expose hard-working americans to unfair, deceptive and predatory practices. perpetuating a con on those who thought he would stand up for them against the powerful interests. member what he said in the campaign? he is undermining the financial security of working families while there is no transparency about how his own businesses would benefit from his new executive orders. frank, democrats strong consumer financial protection. with the fiduciary rule, we protected our seniors and strengthened the middle class and their investments. democrats will continue to fight for jobs, wages and retirement security of hard-working families across america.
was the super bowl. frankld say overturn dodd and score one for wall street. the return of the fiduciary rule? score one for wall street. the list goes on and on. the republicans in congress who have said they are going to move to overturn dodd frank want to as act to where we were that night when the chairman of the fed said that if we don't act immediately -- and when we took the bill to the floor as ao act immediately, republicans voted against it. didn't they said they believe in intervention. that is i we didn't intervene. so when the time came, they voted no because they considered
this an intervention. and that is what they want to do all over again. a champion in this fight then ournow has been distinguished, knowledgeable, informed, brilliant and ranking member who is there for america's working families and taxpayers and retail investors. congresswoman maxine waters. congresswoman: i would like to for thency pelosi continuing fight that she has led with. in our committee, helping us to design strategy, but for the assistance she has given to all of us who served on the financial services committee on the floor as we have constantly push back on the over 40 attempts of the republicans to dismantle dodd frank and the
fiduciary rule. and so. the executive actions on friday so-calledsident to reviewed the budget shares will and to establish core principles for regulating the u.s. describedsystem accurately would simply be an attempt to dismantle protections for seniors and dismantle dodd frank. these directives show once and for all that when push comes to shove, trump will always put the interest of his pals on wall street over the interests of the american people. with this administration, wall street first, it couldn't be more accurate. campaigne divisive that trump ran, he repeatedly accused hillary clinton of being in the pockets of wall street.
he claimed that he would drain this swamp and put america first. what a pack of lies. is running trump white house. for example -- trump was quick toname goldman sachs alone his administration. making steve bannon this chief strategist. nominating steve mnuchin for treasury secretary. combe,appointed gary head of the economic council. he walked away from goldman sachs with a $285 million severance package and into the white house with plans to make his buddies on wall street even richer. last friday, trump unveiled these plans. first, the executive order aimed bytaking apart. frank page
page. this executive order was clearly written by the banks. i occurred all americans to read it. not for what it says but for what it doesn't say. for example, the first so-called core principle is to empower americans to make individual financial decisions and informed choices in the marketplace save and buildment individual wealth. he isn't saying that we need to rein in predatory lenders. to shut down payday loan sharks. that we need to make sure investors aren't ripped off. he is saying he wants an anything goes regulatory regime. predatory practices. he's telling us that it is all someone can long as make an informed choice. and if you choose wrong or you
are duped, i guess that is on you. we had that kind of system before we knew exactly how it turned out. in the financial crisis, it and mortgagebanks brokers steered unsuspecting americans into under written predatory subprime loans and then wall street packaged the loans, lie to the investors about the contents and they knew it would fail. and in the ensuing chaos, banks got bailed out while americans lost $13 trillion in household wealth. 9 million americans lost their homes to foreclosure. and the unemployment rate climbed to 10%. but trump wants to go back to those days. because for him, wall street comes first. this administration is also misleading the public by saying smallrank is hurting
financial institutions. the data doesn't back that up. community banks, income levels are up 12%. they are making more loans than the big banks. and credit unions have seen membership numbers expand. ranks lendinghat to businesses has increased 40%. all of this is since dodd frank. the industry profitability applies to banks of all sizes. all banks have been making money. since doddist, frank. a record profit of $43 billion last year. dodd frank is clearly not hurting their bottom line. but a record profit isn't enough for these guys. they and their family in the white house wants more and they're willing to strip away the important consumer and investor protection in dodd
frank to get it. memorandum on the fiduciary rule is no different. trump is trying to undo the hard work that went into the department of labor's role to andect seniors, savers retirees. most people don't know that when they start saving for their retirement that sometimes the person they have gone to for advice is recommending investments that are in the advisor's interests and not in the clients. this conflict of the device has cost american savers $17 billion each year. trump's memorandum would send that money straight back to wall street. trump's actions prove that he and his administration are all about enriching some of the richest people in this country. it's the billionaires and millionaires looking out for each other. trumps america, wall street comes first and main
street picks up the tag. thank you very much. we have other members who are here. brad sherman is next. thank you. >> brad sherman from california. and 20 year member of this committee. on the issues of wall street and sounded like he was bernie sanders. he is now creating an administration that looks like goldman sachs. the effects of this trump executive order plan is insidious because they don't have the immediate, tangible effect. the executive order on visas and immediate effect, immediate push back, immediate reduction in the immediate effect. obamacare, people will see it if
it is repealed. they will know it immediately. what about changing dodd frank? our leader pointed out, a wall street journal article today says that they are on target to cut by 100 billion dollars the amount of capital in the six largest banks that they are required to hold. and allow that money to go to shareholders and management. but what does that mean? it won't have an immediate effect. the next effect will be in the economic downturn when those banks have $100 billion less in cushion and yet those loaning money to the giant banks, they are not taking a higher rate of return. they don't think there is a greater risk because they believe that in the next economic downturn, without the 100 billion dollars in capital
cushion, those banks can't meet their responsibilities and pay their debt, they will be bailed out again by the federal government. so it won't have an immediate effect. but it will have a real effect on americans and the social contract that holds us together. , asor the fiduciary rule our ranking member pointed out, that is going to hurt american savers to the tune of $17 billion. aarp a rule supported by and the consumer federation of americans. positive statements have been made about it by bank of america, merrill lynch and morgan stanley. say we of trump voters should keep that rule in place. the greatest stop bait and switch in american history. it is time to make sure that trump governs like he campaigns. >> thank you.
i understand you are the ranking member now but he will always be the ranking member to me. that she willy always be madam speaker to me. withds, and a world , it istive facts sometimes difficult to know the truth. the ultimate truth that can set you free. it is sometimes difficult understand that carlisle is right. , it is sometimes difficult to know the that william cullen bryant is right. so please allow me to share a few truths with you. crisis,enesis of this several events took place. that were absolutely striking. you may recall that the stock market fell 778 points one
evening. you may recall that we had to come back and we had to take another vote. you might recall that banks were not lending to each other because the crisis was so dire. we literally were on the theipice of an abyss unlike likes we hadn't seen since 1929. there wasese facts, one other significant event that occurred. members of the opposition party met and the leadership decided supporty would not president obama and they made a pledge to each other and the truth is they kept their word. they fought him every step of the way. dodd frank wasn't something we
necessarily thought we should just do because we were goodhearted people. the american people were demanding that we do something. they were demanding that we do something about the last point that i will make. the yield grand premium. please note that the yield spread premium allowed a mortgage broker to qualify you and then cannot with a big smile and you would get a 9% loan thinking you would get a great deal. you have a prepayment penalty that would coincide with a rate that would coincide such if he wanted to get out of the inflated loan, he would have to
pay a penalty that you could not pay. by the way, the broker got to share in the spread. that is why he would raise the rate. very similar to what is othering with circumstances. so i want to thank you madam speaker and madam chair for the opportunity to face the public. we cannot accept alternative facts when there is a real truth. the truth is that dodd frank has been a great benefit to the american people. thank you. >> congressman faster? congressman: i am a businessman and a scientist and a representative 11th district of illinois. at the age of 19 it, i started a company with my brother in my over 1000hat employs people now.
we use banks in the financial system to help grow our company. but unlike donald trump, we did kept thenkrupt and we middle-class jobs in the united states. and her congress in 2008. when i served on the financial services committee, the emergency response to rescue the economy and the democratic toponse, the dodd frank bill make sure we never suffer through that calamity again. millions of families saw the retirement savings wiped out with the collapse of wall street. of a secure retirement wiped out in the bursting of the housing bubble. the house financial services committee held 41 public hearings on financial reform and
spent 55 hours hammering out the language. and since then we have seen 75 months of continuous private sector job growth, home prices rising at a well regulated rate, the stock market more than doubling, business profits at despite republican efforts, inflation is well under control. and yet donald trump calls this a disaster. trump has not directed his nominee for secretary of the treasury to submit a report within 120 days on how they might change regulations to meet broad economic goals, goals that should already guide everything in the financial services committee. i will save you some time mr. president. i have a thumb drive on the table but the transcripts of all the hearings of all the debates
that led to dodd frank. because congress has already done that work. we are now 10 years after the start of the financial crisis but families in america are only now recovering and we should always remember that this financial crisis did not have to happen. this is fueled by monetary spending that trump's steering us towards today. so when trump tweets out that his friends are complaining that they can't get the loans a want, well, if donald trump's friends go bankrupt as often as donald trump goes, then i'm pleased that our banking regulators are not letting giant banks not making those kinds of loans. what we should be doing is
building on the success of dodd frank. making the united states financial services system the safest place on earth to invest, the envy of the world and the financial haven in times of crisis. thank you, all. >> our newest member, mr. gonzales. gonzales: thank you. i would like to thank our colleagues appear fighting the repeal of dodd frank. a group he catastrophic. it was in my district. tens of thousands of people lost homes. millions across the country. the should be a bipartisan issue. it should be something that is just taken on by a small group on a committee. we cannot return to the financial catastrophe that we had in the past. they district, one of
country -- one of the poorest in the country, we need to save our seniors and young people trying to buy homes giving them the stability that they need to move forward in this country. thank you, very much. >> i thank my colleagues for the valuable contributions to this discussion giving some of the concerns that we have as we go into the future. i want to mention that only did reform bill forward to dodd frank, one republican voted for the bill, even though there were attempts to accommodate some of the concerns in the 41 that.gs of and only had the conference report come back, three republicans voted for it. another no wonder that journalist is reporting that republicans in congress are ready to overturn dodd frank. what happened on wall street was
about greed. and also about criminality. nobody picked the price except for the american consumer and american taxpayer. we are not going to let that happen again. to put wallts street first again, we will not be going back. >> last week, you said your is to leadsire donald trump into impeachment. wondering why it is appropriate to call for the impeachment of trump less than a month into the presidency? >> i have not called for the impeachment. he is doing it himself. the statement i made was a statement in response to questions and pleased that i'm getting from many citizens across the country. what are we going to do? how can a president, who is
acting and the manner that he is acting, whether he is talking about the travel ban, the way he , hislking about muslims relationship to vladimir putin thathe kremlin, knowing government.cked our knowing about aleppo. the fact that he is wrapping his arms around putin. advance continuing to -- what are we going to do, and eventually, we have to do something about him. we cannot continue to have a
president who is acting in this manner. it is dangerous to the united states of america. >> do you agree? >> i'm not here to talk about impeachment. i'm here to talk about the assault that trump is making on america's working families. anything is grounds for the displeasure and unease in the public that the president has acted in a way that is incoherent, incompetent and reckless. and that is not grounds for impeachment. ,hen and if he breaks the law that is when something like that would come up. >> can i follow up on the subject of today with dodd frank your colleagues -- many democrats were against the fiduciary rule? >> that is not true.
all of our members pitched in to say how we could improve this. and i'm glad you brought that up. because our secretary of labor listened to everyone that our members suggested they bring in from the private sector. some in thewhy private sector came forward and said yes, we can live with this. this is about being honest with the american people. they had financial advisors who are telling him that we should make this investment because i get a bigger cut of the action or should we have investments that say, this is in your interest? >> would you be supportive of -- >> no, i wanted the way it is because this is what we put forth as the best protection for the americans. make sure you understand -- i hate to say this because i like to think we are community and we and we havegether
economic growth in our country -- but what is happening now is that president trump and his billionaire cabinet and advisers are puttingffice forth a wall street first policy at the expense of the american people. anyone listening to this on a monday morning, or if you hear about it, make sure you understand what this means to you. my colleagues have talked about it in terms of homeownership, pensions, jobs, growth in our country. they want to take us back. sametook us -- with the policies that were referenced, , theuts for the wealthiest thatge in medicare part d,
produced a great benefit in our ,ountry, and at the same time actions that allowed wall street -- and i'm not accusing everybody on wall street with this. because there are some people who understood this was wrong. but some did not. some had the irs of the public that no action was taken, no criminal activity in the way they ripped off the american people. the american people have to know. public sentiment is everything. abraham lincoln. the public has to know that they want to take us back to that place by a person who went up there and campaigned against wall street. it was just a hoax. just a hoax. the kids here he comes saying we will overturn every protection that is there for you. whether it is wall street reform, the fiduciary rule, most
people don't know what that means but that means who you are responsible to when you make an investment. the biggest cost for you the -- so retail investors who are not sophisticated and who are not paying as much attention as an advisor should be as to what is happening in the marketplace. this is a brick. out of everything this president has done so far, he has job -- he has done nothing. where's the job creation? nothing. by this time in obama's administration, and generate 20th, 2009, he wanted to take action now to create jobs for the 21st century. one week and one day later, the house passed legislation for the
reinvestment act. the short time after that, the senate passed a bill. so one month after the inauguration, the president had passed legislation and congress a pass legislation that would save or create of to 4 million jobs. so where is the job bill? in order to deflect attention from the fact that they have no , andill, they do a bayern immoral and unconstitutional, reckless ban on muslims coming into the country. and when that wasn't going so , they push up the timing of a supreme court justice who will undermine the things that we are talking about here. couple oft is only a weeks since the inauguration, there is complete evidence. that i cann nothing
work with the president on. and i'm disappointed. what he said in the campaign turned out to not be true. and to actually be dangerous to the economic stability. >> are there any areas of financial regulation where you would want to work with republicans right now? you know, i am constantly asked about what we are going to do to work with republicans. and i basically describe over and over again that they have the numbers in the house, senate and the white house. to workthey want to do with us? much of the work that has been done has been by democrats
and some republicans on the financial services issues, they claim that somehow they want to work on behalf of community banks. are worked for he closely with community banks. we have listened to their concerns. we have addressed those concerns. in $2e community banks billion in west do not have to comply with dodd frank. ability to do mortgages and hold them in their portfolio. we worked with them on making sure that we created an exam schedule for them so that the exams did not take place so often, which cause them to have to tie up the employees in the bank. we worked with them on extending the amount of time that they could get privacy notices out because they said it was costly to send them out every year. and every time we have tried to work with the republicans to do more things, they do not respond
because the american bankers association is in control of community banks and community banks stick with them because they believe that they need the big banks to be their advocates. and so the big banks use them. and they keep them hostage. basically. and we still extend a hand to the community banks. as a matter of fact, we said we could extend the protections to 10 millionn dollars and basically they said no. as a matter of fact, only if you don'te big banks, as we want any limits, whatsoever. so don't be full and don't be tricked. everything we tell you about the community banks, you can verify. that we havey all
attempted to do. all that we have done. a handout tohold work with community banks and they know this. and if the big banks would release them from being used than they could then say they were working with us. >> a small thing we could work on together is allowing credit more business loans. and whether that is in the sense of lifting the percentage that business loans for or whether it is classifying mortgages on small apartment buildings as not coming under that cap, there are tens of billions of dollars available to the very small businesses, the ones that we hang out with in the district and i think that might be bipartisan. i'm still looking for a to join with me in saying that we have
to change how we deal with the credit rating agencies. the present structure as the cause of 2008. all day.hey gave aaa and they got more business by being liberal racers. if you were allowed to give thousands of dollars to your professor, your grade would have been at least a aaa. so the franken sherman amendment to dodd frank got watered down a little bit in conference and it got disregarded but we need to see a circumstance where it isn't just the road to profits for credit rating agencies to be known as easy graders. >> following up on that. as it currently stands is what he is seen in the committee, are you urging the members of your congress to oppose any changes to the dodd frank act?
lines, are you will try to carry this over and segue this into grabbing onto the atmosphere surrounding the capital? >> the first part of the -- tion frank bill is a huge bill. with a lot in it. are you talking about the consumer financial protection bureau? what are you talking about? he would need to say that we would be willing to work with them to change dodd frank. very carefully to any concerns that are identified by community banks and even by the big banks. and by any in the whole industry and wall street. bytake their concerns one one. we listen to them. sometimes we are able to do
limited modifications. we have done that. so we are not going to destroy not going and we are to get rid of the bureau. he will do with the transparency derivatives. but we will listen. and if there is any opportunity to straighten out an opportunity that may not have been written -- we haveway that always been able to do. ask what they are doing now will present a systemic risk to our did withjust as they the same behavior leading up to 2008. it might be constructed for you to know, and some of you do know because you covered it at the -- land, just to show how cooperative we want to be to on septemberconomy
18, 2008, i was sitting in my office with the leadership and i said that i regularly heard from the secretary of treasury that the responsibility has to support and respond to us on the .tate of the market credit markets and bond markets and global markets. but i haven't heard from them in a couple of weeks and in that amount of time we had lehman, --rill lynch -- in 24 hours aig getting bailed out for $80 billion which we didn't know they had or could do. else i watch and it was 3:00 in the afternoon and i didn't want to be rude but i said mr. chair this meetingtary, with my leadership -- i haven't you comem you, could
in tomorrow and brief the whole leadership and not just made on how you see things. because we don't want to make any statements that might lessen confidence in the market. we don't want to say the wrong thing. do you know what he said? madam speaker, tomorrow morning will be too late. i callingid, why am you, not you calling me? because the white house did not want congress to know. they were hoping they could ride this ring out until the election, which they knew would be a good chance was barack obama. the meltdown would occur. and they were relieved of their responsibility. were responsible in terms of lack of regulation, lack of supervision, etc. and so, they came that night instead of the next morning. democrats and republicans. senate and house.
and members of the administration. the administration was not happy about doing it, but when they said who does she think she is? kevin said she thinks she is the speaker of the house. secretary described a meltdown of such proportion, he took us to the depths of hell, a place dante couldn't even find a circle to name. so discouraging. that is when i said to the chairman of the fed, what you have to say? he said if you do not act immediately, we will not have an economy. and did most republicans voted against the bipartisan solution that president bush was advocating? he never thought the republicans would walk away from that. vote for it you they were true to who they are. they do not believe in any containment of the degree and criminality of wall street.
that is just the way it is today they call that the free market. but that has uncle sam's collusion for your lack of response ability to the economy. that is where they want to take us again. the reforms in dodd-frank. and thank god, when we wrote the tarp bill am a that they largely did not vote for, that they would have to tax -- pay the tax payer back. of wall street, even when we are making the suggestion that we could -- should contain ceo pay, the secretary said if we contain their pay, they will not accept the bailouts. imagine that. subsequent to that, after the bailouts, fortunately, we had theected the taxpayer in
bailout. they took the biggest bonuses that they had ever received before and since. i do not know what it is they would -- they want. how much more money they need. i think they want immortality. the names on buildings. we have to put a stop to this. neck and people have to know. this is not political. this is economic. this is our country, our economy. making pointst politically, it is about changing the behavior of the republicans in congress or at least letting the public know this is what they believe, hold them accountable for your mortgage, your pension, your children's education, your job and the health and well-being of your community. a is not about winning political point. it is about strengthening our economy. creating jobs to create growth. there is more to it, but i will step aside now. g4 savingot at
dodd-frank, is it the same as blocking the obamacare retail? rep. waters: -- rep. pelosi: let's take it to the public. this is about the public interest. were very of us discouraged on inauguration day, when we had the peaceful transfer of power to a new president, we were -- our spirits were lifted the next day when millions of people across the country and even more across the world came out and said we are listening. listen to us. we are holding you accountable. it was a fabulous thing. so we believe the more the morec knows, the accountable republicans have to be on these subjects. and mr. crowley and ms. sanchez
have planned a competence of schedule for us this weekend. we will tell you what we are doing at that time. .ut it is the public knowledge it is about the truth. about people knowing what is happening and how it affects them and their lives, their economic stability. what he said in the campaign and what he is not doing now. when it comes to wall street versus main street versus working families in our country. that is it? anything my colleagues want to add on any of the questions? >> one small thing. things that congress should be looking at. real threat to small community banks is not dodd-frank regulation. it is banking on your cell phone. congress has a lot that we should be doing in making sure that when we regulate, we do not rediscover all of the mistakes
we learned not to make during centuries of banking regulation. that is in areas where democrats and republicans should come together. not to generate predictable mistakes in our regulatory framework. comments.itional thank you, madam speaker. some of this has gotten to the point where it is fatuous. it is really almost senseless. in this world of alternative facts, when persons say they want to cooperate, they really mean they want to obliterate. they want to completely eviscerate dodd-frank. how can you cooperate with people who want to eliminate the legislation that was demanded by the public? extent cooperate to the we can, when it is difficult when their mandate is keeping the promise they made when they said they were going to oppose president obama and are still
doing it. still keeping their word. thank you. of yount to thank all for being here today. when our leader talks about informing the public. about really talking raking down financial services, we are talking about breaking down financial services, language, in ways the average citizen understands. are getting rid of consumer protection with this. so it is important for us to do everything we can to talk about financial services in a way that connects with the public and helps them understand the connection between the reforms and what was happening to them starting in 2008, when we had the meltdown, etc. i am thankful all of you are here today. i am thankful you are interested
in understanding not only what we are attempting to do to educate and inform the public, but to start to write about financial services issues in average main street citizen can understand. thank you so very much. thank you, madam leader. [captions copyright national cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> if you missed any of this, you can watch the democrats' briefing anytime online on c-span.org. the house returns at noon eastern time for a deal on land exchanges and tomorrow voting on legislation to overturn
president obama's regular sense on school accountability and federal land management. house is out wednesday through friday for the democratic retreat in baltimore. the senate meet that in for debate on the nomination of betsy devos to be education secretary. a confirmation vote will be held tomorrow with more nominations to come in the week. watch live coverage of the senate on c-span 2. here's more on the week ahead in congress. lillis is joining us from here in washington. a reporter from the "hill." hill." guest: how're you doing? the: talk to us about nomination for education at -- education secretary. where do we stand echo what are people saying about it? guest: that will be the big fight. all eyes on that vote. we are in an unusual