tv [untitled] May 24, 2011 9:00pm-9:30pm EDT
well on job market in washington d.c. and here's what's coming up tonight on the big picture big brother is not going anywhere anytime soon i'll explain why congress plans to have all eyes on you and me for a long time and the days of the middle class being screwed by wall street are over of a lukewarm has anything to do with it democrats are pushing for a nomination as chairwoman of the consumer financial protection bureau but she has one big hurdle to leap republicans and the h.b.o. film too big to fail premiered last night so the movie captured the essence of the
financial mess the banks created in america. you need to know this congress is back in session this week in the first agenda item it for lawmakers is shredding the u.s. constitution yes it is overwhelmingly it was support from both sides of the aisle voted to pass a four year extension of the patriot act the surveillance monster created by george w. bush after the nine eleven crime and he's four more years of phone wiretapping laws and snooping our library records and now they're adding surveillance of the details of everything you do on the web without even the need for any suspicion proof of a crime or a warrant here's a thought republican rand paul sort of the floor of the sun it about this patriot act. we do have a right to privacy you have a right not to have the government reading your reasonability we do have rights and
we should protect these and we shouldn't be so fearful that we say well i'm a good person i don't care just look at my records and if you do you're setting yourself up for a day when there will be a tyranny when there will be a despot who comes into power in the united states and uses those rules that you said although i don't having behind what even rand paul and i see i occasionally paul was one of only eight senators who voted no including four democrats three republicans and the independent senator bernie sanders the house is expected to pass their version of the bill this week tell me the patriot act will be put into law through twenty fifteen fifteen years of big brother counterterrorism in response to nine eleven fifteen years so as our nation just thrown in the tell when it comes to defending civil liberties in this age of terrorism here is talk about the issue is right and while it border a talking point a right welcome i think you have me what's so bad first of all about the patriot
act which is established the basis here i think there are certain provisions certainly the most extreme provisions that were discussed to or under the agreement that leahy senator leahy and as well as senator paul proposed to eliminate some of the most controversial proposals where the are the lone wolf or pose a which would allow the government to surveil non citizens without any sort of secret surveillance essentially it would also there's also provisions of a to exist examine business records with a court order and. in the show provisions that have been controversial. what is congress doing this week and what parts of the patriot act are the extent of the extent of the whole thing or just feel sure though that it's the there's three that if three parts that are set to expire this week and it's interesting because it's something that you wouldn't normally see rand paul. he cited someone like senator leahy. or bernie sanders in agreement on something so it's brought
together sort of a libertarian strain as well as sort of more of the liberal strain of on the democratic side especially in on the tea party caucus i think in the house there's been a lot of debate over this in fact they when they tried to expedite the process and back in february it was sort of an embarrassment for house republicans right because they thought they had the votes in order to sort of speed this process up but they were it came out some some votes short are they going to do it again or blow it up again i think it's especially with the looming deadline of and with obama being overseas they really need to pass this quickly they just just to make a close the ability to add amendments to this so the center. is so there's not an ability to add any more of them and so it's going to be expedited because they have to once the bill is signed get it overseas because since obama is overseas right now so if if the tea party caucus in the house or for that matter the progressive caucus has no ability to amend this bill and they have any objections to it isn't
good they're just going to go along and vote for it it seems like the leadership of both parties wants this to happen it's the outliers it's the progresses of them and the tea partiers as you pointed out who are saying wait a minute wait a minute yeah well i think one of the interesting things right now is that because the law is sort of set down and because we're coming up on an election year there's this mentality that if anything were ever to happen it's immediately going to be if the patriot act were to say be reformed or parts that provisions were to expire and that anything that happened when you meet immediately blamed on not having sort of acts of terrorism two weeks later already in congress surely and so they'll run the commercials against them and they can become a current election exactly so there's a lot of worry i think about batting average you know i thought it was particularly interesting in the pathway the senator from vermont who used to be chairman of the judiciary committee and is now the ranking member of the second you know oh no he still isn't sure yeah yeah i keep forgetting are the democrats still control the side of it. pat leahy was the guy that the original patriot act had to go through
and then it had to go to tom daschle on who was the majority leader on the floor of the senate in order to be brought up for a vote and those two guys were the two obstacles to the original patriot act what it was this giant piece of legislation was trotted out just days after nine eleven and still people scratching their heads going where the hell that come from but in any case they both expressed reservations at the time they both said you know we may not do this and they were the only two members of congress that got anthrax in the mail and weekly is going to get patriot act and. do you find it interesting that in the in the wake of the anthrax pat leahy was ok ok ok let's do this and now he's taking a more deliberative approach i don't know weeks where he's expressed some reservations about only you know what he said now in support of an amendment but i think the i mean these were really the provisions that we're talking about were originally set us on sunset a while back but they were extended on a temporary basis for like fifteen months great and even this new proposal that paul and and make he came up with would still have been active for
a long time before they would eventually sunset so this i mean this is i guess it's a bar you know it's one of those temporary government programs that you know never seem to seem to seem to end but it's like you know the pentagon according to prostitution every two years it has to be renewed basically it's you know the existence of the military and they've been doing it pretty well for a long time. has only four democrats voted against it how did this go from. well actually when it was the patriot act ever a partisan issue or was it always everybody wanted to say you know we're for national security we're going whoa you know almost like the cold war. has it always been pretty well i don't know about but i mean it's certainly right after any big name alone the patriot act a certificate i would imagine tough to justify just because it isn't right. but in some. but years you know the inspector general's office at the justice department has revealed a number of abuses and it's only thanks to that oversight that there have been some
of the reports that come out and you know some of those problems have been taken care of and you know that this is something again that has the backing of the f.b.i. director of the attorney general so it's very tough for him to go up against. as the oversight provisions been expanded or are strengthened at all since that's one of the it was out there trying to do with the amendment but there's only right and i think that there have been some changes that it gets better oversight of the justice department of those provisions but i think really in then it would have strengthened them and that's something that won't be coming up remarkable ryan thanks so much for being with us thanks for having me i appreciate your reporting and thank you considering that osama bin laden's main goal was to force america to fundamentally change who we are and sacrifice our ideals with another extension of the patriot act it looks to me like congress is heading excuse me handing him a posthumous victory in a ben franklin said those who is sacrifice the liberty for
a little temporary some first security deserve neither of the variations of what some of the answer there were temporary that's frankly we're going right now we have frightened politicians who have basically all the corners of the constitution and they've taken pieces out of it. with the patriot act in a piece of legislation over the years and now they're talking about actually ripping the thing up or at least pieces of certainly the fourth amendment which is actually not part of the original document in any particular point so. the problem here as ryan pointed out but i think it's really worth emphasizing you know when we when we look at you know how did we end up with with fifteen thousand nuclear missiles enough to destroy the earth four times over during the cold war it wasn't because we needed them it was because everybody in congress was afraid to vote in a way that could be used against them in the next election as oh well he didn't vote for national security or she didn't vote to you know keep up with the soviets
or whatever and so it just became this self-perpetuating machine. and you know much like the cold war and the and the general insanity of it we're seeing the same thing with this giant national security state and the security theater ranging right down to you know the chertoff or no scanners in the airports and the and the t.s.a. gropings i mean it's just which are not done in europe and it's it's just frankly i think should concern all americans as as as an essential sort against our liberties. crazy alert out of the woods yet a lot of us are why p.r. browse after may twenty first came and went without a rapture it's like harold camp scenes doomsday prophecy was wrong after all
surprise surprise that is unless something did happen and we just didn't know about it as told the b.b.c. take a look. since it's still the same but judgement. your world is under judgment were it was prior to may twenty weren't i think he's grasping for straws at this point i don't know about you but camping is a lost a lot of his credibility if there is only someone new who can step up and carry the apocalypse mantle to warn us all about the gates of hell open on planet earth. it will take profound courage to stand in israel. because i believe the very gates of hell have just been opened against them but the very gates of heaven are about to open up the other way looks like we found campaign two point zero zero welcome to what how do we prepare for the gates of hell and heaven in opening up thing first
of all that ensures this is something that my staff has my family their backpacks you'll put up with backpacks and inside the backpacks is every things you need in case the world goes to heck in a handbasket do the easy stuff. because when the four horsemen of the apocalypse ride roughshod over the world i'll be safe with your little red backpack of canned food anybody else still doubt the back is going to become a televangelist when he leaves fox. coming up it's the story of how wall street screwed the people main street. break down too big to fail the h.b.o. film based on andrew ross sorkin his bestselling novel. for.
you know sometimes you see a story and it seems so silly you think you understand it and then you glimpse something else you hear see some other part of it and realized everything you saw you don't i'm sorry this is the. one name that's being tossed around a lot on capitol hill this week is elizabeth warren the former harvard law professor a lifelong advocate for protecting the middle class has
a lot of supporters on the hill who want to see her appointed to be the first chairwoman of the consumer financial protection bureau a panel created in the wall street reform bill to make sure customers aren't getting screwed by their banks again only currently sir warren currently serves as special advisor to the bureau all full time chairperson of the democratic lawmakers and several consumer advocacy groups want to see warren fill the top post and are calling on president obama to make it happen however there is one giant hurdle in the way of a war on nomination the republican party they just don't dislike war they hate the idea of a consumer financial protection bureau or any real regulation of bankers and have vowed not to approve any nominee for the job forty four republican senators enough to hold a filibuster have vowed to oppose any nominee for the new consumer financial protection bureau but president obama can get around this right wing opposition by appointing
warren during a congressional recess a move that even the oklahoma bankers association a one time photo of warren's is pushing the president to do they wrote a letter to president obama saying in light of the actions taken by the forty four senators who stated they will oppose any nominee to serve as director of the new bureau unless certain changes are made to be structure. urge you to wait no longer and give elizabeth a recess appointment before the twenty first july twenty first transfer date so will the president listen to the voices on both the left and the right approach appointee true advocate for working families to head up the agency in charge of looking out for working families here to offer their takes on this issue richard asco former wall street executive and a contributor to the huffington post alter net and the campaign for america's future and bart naylor financial policy analyst and expert x. the expert and analyst for public citizen welcome gentlemen to you both. great to see. you are richard barton and you are barking i'm sorry thank you thank you very
much for. first of all how much power as agency have with the agency does enjoy the potential for arresting the kind of problems that got us into the inflation of the housing bubble but whose rupture caused the crash and the thrashing of the global economy that we're still recovering from and as we speak so and richard to what extent do you believe that that will that it will actually work that you know is the mechanism there and and i've heard talk that there are republicans in congress are talking about defunding it is that a possibility well you know you need to hear republicans talk this is the most powerful super agency ever created actually it was watered down quite a bit last year in the reform negotiations and it's a bureau instead of an agency i think i agree with bart it will have a very positive effect mostly the sentinel of fact and then the regulations it puts
into effect but it already has to jump all sorts of hurdles to enact regulations and so on so they're making it out to be this monstrously powerful organization and it's simply a commonsense group that's been created to make sure that people don't get ripped off and so what we're finding out is that ripping people off is part of the business model and has to be protected that's not repealed and people working people off as part of the business model well it's quite chilling that the charge of the q.b. is to end unfair deceptive and if you say abusive practices that it appears that apparently it's probably franken brad miller would say congressmen who are on the house banking committee but these are central to the value proposition of the banking industry and that's they can't be upset of course publicly but they've marshaled every lobbyist they can find to emasculate the consumer product the consumer financial product agency and they are. very worried that this soccer mom from oklahoma who happens to be a harvard law professor will actually do her job as opposed to the other regulators
who apparently have been captured by the banking industry tragically. first of all to what extent could the obama administration prevent that from happening right now well they could some of us believe that the regulators had the power. all along to arrest the kind of practice is that led to the financial catastrophe we're learning from the financial crisis inquiry commission for example whose illuminists report was released in january that there was actual financial literacy by some of the leaders of our of our financial regulatory agencies yet they they let the banks through sco from twelve times leverage to thirty five times leverage they did allow whatever been done since they started thirty five pages here the way they were celebrating this they were they were part and parcel of the problem and that's a tragedy that will take a long time to recover from it's incredible you had you know lehman i believe it eighteen billion dollars they were borrowing every single night on the overnight
richard congressman mchenry today cues to elizabeth elizabeth warren of. what's going on with this. well you know it's the kind of. we've come to expect and you know he he accused her of lying in two ways one they created the usual phony conservative scandal that doesn't exist by claiming that she lied and didn't tell people she was advising at the treasury secretary about consumer financial issues or the attorneys general in the advise in the president and the cabinet is or anyone they ask her to advise is her job and she never lied about that he also even got so petty as to say that she lied about the scheduling of her testimony which if you read there were reports he couldn't possibly know what conversations she had with his staff about the testimony so he's kind of showed himself to be both you know a bank attack dog and not
a very pleasant human being and in return to you know there to tell this big lie that she's running with some sort of you know super agency and it's an ugly little display today so the president has had a year and a half to put somebody in this position has he not done so because the republicans have just said don't even bother with this case the the agency the bureau doesn't stand up until about twenty seconds so he has time i see that he is on time to stand this up and he's been very wise for point because warren as a special advisor to help with the standing up of this bureau there was there was something in the news today in fact it was at the top of daily koz most a half about half of the morning of a grassroots movement in massachusetts that is kind of spreading across the country to encourage elizabeth warren to run against scott brown for ted kennedy's old son it see when it comes up next year i think this actually demonstrates the political tone deafness of chairman patrick mchenry of this committee somehow he's decided
that it's politically expedient politically attractive to side with the bankers even though they poll less popularly than a member of congress whereas in fact. the popular drafting of elizabeth warren united states senator i think he needs to be made if you think about it tom it's also kind of a brilliant head fake because basically somebody saying to the republicans ok if you don't give her the job she should have we're going to use or take out one of your senators to be interesting to see how they respond to that and i felt frankly i think i think she's one of the few people who could actually take out one of her senators a very interesting bar richard thank you both very much for being with right there for sure about making sure those with war is clearly a great candidate for the job but there's a bigger picture here last night h.b.o. air their new movie too big to fail about the two thousand and eight financial crisis they call it a trail. if you want to we want to take we can do that right now the one thing we don't have is time. mediately.
to actually keep traditionally just. works its way these tits treasury equally into this cold war and the risk manager must control we've got one shop has come since the c.e.o.'s of every major thing coming here to directing us to put lehman's into bankruptcy but. what if you want to cause the next oppression he's not going to be he's not threatening the republican presidential nominee is he treats running around with a tear on the storm a people are preaching i think speech to get their money. why would you bailout people so that looks to be a good story we want to see. if you want to support some of the do gooders trust you you'll. soon get security.
you got him. free. these games since. this is you know welcome to the brave new world of banking it's really quite extraordinary the two big losses that i took away from watching too big to fail last night were number one the paulson geithner and bernanke he would not consider the ronald reagan solution to the u.s. and also snow banks you know in the us know when reagan deregulated the s n l's and then a couple years later they crashed after a whole bunch of people like neil bush had made a pile of money. basically you know they took them over to put a guy named william seaman in charge of the resolution trust corporation the took over basically nationalized the s n l's and over about a twenty year period actually made
a profit selling them back into the private business and the second one is that the banks just took our money and they will not rely on that they paid themselves one hundred thirty five billion dollars which was about what we loaned out and you get that at the end of the h.b.o. special is really quite shocking we have seen this movie before know it william siegmund who died just last year easy he was a one of those good republicans i mean this this guy was a adroit eisenhower republican ronald reagan brought in to run the s n l's and run the resolution trust corporation that was created to resolve the crisis he was one of the heroes of the story he saw in the great depression as he just died in his eighty's and he saw it in two thousand and eight and he invented a vehicle during the time that he was working in the reagan administration that led to the crash of two thousand and eight as he points out right here. more. market. rule in a way it is almost impossible to believe there were almost two million subprime
mortgages written in a period. that means somebody had a finance. a couple million homes or moore most of sub prime mortgages. so. why did anybody put their money why would anybody knowing that these be sub prime means that they are not prime. well that goes with that goes back to something called securitization then something called traunch credit rated securitization. that was invented by. people who. were operating in the r.g.c. . and namely it was invented by median or. so you can start with saying
that the vehicle that was used to market the subprime mortgages was this kind of securitization. and it was invented by bill c. but he knew how to prevent it from going crazy like the banks just took it serious . one the credit rating agencies. and i guess you can blame me blame those of us who did the r.t.c. there was a vital difference we retained that last piece. so we had an interest in seeing that it's all work because after all we were the last one on the ladder. see they the government held onto a piece of each tribe and so they didn't go nuts and they didn't let the banks go nuts and you'd think you know the republicans today the bush administration would
look at what reagan did and said hey you know this might work but it was too close to what sweden did ninety eight when their banks failed and they successfully took them over or what did with northern rock in and took it over so you know the r.t.c. the resolution trust corporation the see even invented and ran showed a profit because they did what bush and paulson indictment and bernanke he would not consider here's we'll see going on this. i think the lesson of that would be very clear. if an industry needs ready lady. regulation or super. does not work. and there we have tremendous losses on our shores from not all of which are out. because the investment bank which is the globe who are part of the name which was oh come across or so what's happened here is right wing ideology that almost
a libertarian ideology to government should play no role at all in banking allowed the banks toure's in this really started in after two thousand two thousand and four really up on pick up steam in fact it was in two thousand and four williams even talks about the same clip where he was giving that speech or in grand rapids michigan about how in two thousand and four they went to their regulators in the bush administration and said you know historically we've only been able to land against twelve times one of the caches knows for every dollar they have and deposits they could lend out twelve but they said why don't you just let us learn whatever we want. and the push regulators to do it so they went to eighteen percent then they went to twenty five percent and they went to thirty percent and they finally ended up at thirty five and thirty seven percent thirty seven dollars if they were looking for every dollar they had and when those dollars they had vanished they couldn't hold back the loans which is what froze the whole thing up crashed it and then bush and paulson and geitner and brink frankly made it worse
because they wouldn't consider what had worked for roosevelt and what had worked for reagan and what did work for so many other countries which is basically just taking over the banks and breaking up and we need to do that. it's time for our daily poll your chance to tell us what you think here is that is question is the time for president obama to do a recess appointment of elizabeth warren for consumer protection your choices are yes can't think of any reason not to or no let the republican war on bank customers continue so far when they voted yes you can log on to thom hartmann dot com and let us know what you think a poll be open until tomorrow right. after the break our guest will explore why police are so often the bad boys in blue creating a sense of fear and distrust in communities.