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| TIME | SPEAKER | TEXT |
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| 00:01:44 |
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THE MEETING OF THE COMMITTEE WILL PLEASE COME TO ORDER. ON FRIDAY, CONGRESS PASSED A $700 BILLION... |
| 00:11:22 |
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WE HAVE MEMBERS ON THIS SIDE WOULD LIKE TO MAKE OPENING STATEMENTS. |
| 00:11:27 |
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THE GOALS OF THE COMMITTEE PROVIDED THAT CHAIRMAN AND RANKING MEMBER MAY MAKE OPENING STATEMENTS. ... |
| 00:11:43 |
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THANK YOU. |
| 00:11:50 |
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I WOULD JUST LIKE TO ASK UNANIMOUS CONSENT THAT MEMBERS BE ALLOWED TO MAKE AN OPENING STATEMENT. |
| 00:11:58 |
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THERE IS OBJECTION TO THAT. THE RULES DO NOT PROVIDE FOR IT. THE COMMITTEE DID NOT PROVIDE UNANIMOUS... |
| 00:12:12 |
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I WISH TO MAKE A UNANIMOUS CONSENT MOTION -- |
| 00:12:17 |
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THERE IS NOT UNANIMOUS CONSENT. |
| 00:12:21 |
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I BELIEVE THERE IS A COVERUP GOING ON AND I WOULD LIKE TO MAKE A STAND. |
| 00:12:26 |
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WE WILL FOLLOW THEIR RULES. |
| 00:12:30 |
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THANK YOU FOR A CHANCE TO EXAMINE THE INTERLOCKING EFFECTS AND CAUSES FOR THE INDUSTRIALIZED NATION... |
| 00:17:28 |
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WITHOUT OBJECTION. |
| 00:17:32 |
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A PARLIAMENTARY INQUIRY. IN MY REQUEST FOR PERMISSION TO OF THE MEMBERS GIVE AN OPENING STATEMENT,... |
| 00:18:15 |
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THE RULE PROVIDES THAT IN GENERAL THE HOUSE AND COMMITTEE BILLS DO NOT ADDRESS THE COMMON PRACTICE... |
| 00:19:08 |
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MR. CHAIRMAN, PARLIAMENTARY INQUIRY. I'VE BEEN ON THE COMMITTEE WITH YOU FOR 16 YEARS, I HAD THE ... |
| 00:19:22 |
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THE GENTLEMAN WILL STATE HIS PARLIAMENTARY INQUIRY. |
| 00:19:27 |
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DURING THE ENTIRE TENURE OF MY CHAIRMANSHIP, I AFFORDED AS A COURTESY EVERY MEMBER ON EITHER SIDE... |
| 00:20:08 |
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THE CHAIRMEN AND NOTES THE PRESENCE OF MANY MEMBERS TO ALLOW YOU TO MAKE AN OPENING STATEMENT OTHERS... |
| 00:22:14 |
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CHAIRMAN WAXMAN, RANKING MEMBER DAVIS, MEMBERS OF THE COMMITTEE, THANK YOU FOR INVITING ME. THE RESULT... |
| 00:26:58 |
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THANK YOU VERY MUCH. DR. WESCOTT? |
| 00:27:05 |
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CHAIRMAN WAXMAN AND MEMBERS OF THE COMMITTEE, THANK YOU FOR INVITING ME TO TESTIFY ABOUT THAT MELTDOWN... |
| 00:32:32 |
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THIS MINOW. -- MS. MINOW. |
| 00:32:41 |
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IT IS AN HONOR TO PARTICIPATE IN THIS HEARING AND I APPRECIATED ARE MUCH. I WOULD GIVE ANYTHING IF... |
| 00:37:00 |
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THANK YOU. NO DEMONSTRATIONS. MR. SMITH. |
| 00:37:06 |
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THANK YOU FOR HAVING ME HERE TODAY TO ADDRESS THE PERCEPTION THAT PERSPECTIVE OF A MAJOR INSTITUTIONAL... |
| 00:41:31 |
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THANK YOU VERY MUCH. |
| 00:41:36 |
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I AM REALLY PLEASED TO HAVE THIS OPPORTUNITY TO ADDRESS THE QUESTION OF REGULATION AND ITS ROLE IN... |
| 00:42:21 |
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COULD YOU PULL THE MAKE A LITTLE CLOSER? -- THE MICROPHONE A LITTLE CLOSER? |
| 00:42:29 |
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CONGRESS RESISTED REFORMING FANNIE MAE AND FREDDIE MAC UNTIL IT WAS TOO LATE. AND IT WOULD NOT HAVE... |
| 00:46:29 |
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I WANT TO THANK ALL MEMBERS OF THE PANEL FOR YOUR PRESENTATION. YOU WILL RECOGNIZE MEMBERS TO ASK... |
| 00:46:44 |
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WE ARE FACING WHAT HAS BEEN CALLED THE MOST SERIOUS AND ENTERPRISES SINCE THE 1930'S. -- MOST SERIOUS... |
| 00:49:19 |
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REGULATION IS AN EXTREMELY COMPLICATED MATTER AND IT IS IMPORTANT THAT WE HAVE THE INCENTIVES LINE... |
| 00:50:01 |
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WHAT ABOUT GLASS-STEGALL? THAT IS NOT COMPLICATED. IT SAYS THAT SAFETY AND SOUNDNESS SHOULD NOT MINGLE... |
| 00:50:17 |
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I DO NOT HAVE A STRONG OPINION ON THAT ACT. I THINK THAT THERE WERE RISKS INVOLVED IN THE MORTGAGE... |
| 00:50:46 |
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THANK YOU VERY MUCH. MY TIME IS VERY LIMITED. I WOULD LIKE TO GO DOWN THE LINE, STARTING WITH DR.... |
| 00:51:10 |
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NO, I DO NOT THINK IT WAS A MISTAKE. |
| 00:51:17 |
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YOU DO NOT IT WAS NO, NOT AT THIS POINT. |
| 00:51:20 |
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I DID WAS A MISTAKE. C-SPAN.O-- I THINK IT WAS A MISTAKE. |
| 00:51:31 |
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IT APPEARS TO BE FROM THIS ANGLE. |
| 00:51:34 |
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NOT A MISTAKE. |
| 00:51:39 |
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WOULD THIS HAVE PREVENTED IT RUNS ON OTHER FIRMS? ESPECIALLY THE MONEY MARKET FUNDS, THE RUN THAT BEGAN... |
| 00:51:54 |
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NO, AND APPROVE THIS ONE WITH THE OF WHAT HAPPENED WHEN IT BEAR STEARNS WITH -- THE PROOF IS THAT... |
| 00:52:25 |
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PEOPLE IN RETROSPECT MIGHT HAVE UNDERSTOOD THAT THERE WAS MORE LEHMAN BROTHERS PAPER OUT THERE AND... |
| 00:52:33 |
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I THINK IT WOULD NOT HAVE MADE AN ENORMOUS DIFFERENCE. |
| 00:52:38 |
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I THINK IT WAS ONE PIECE OF A MUCH BIGGER PUZZLE. |
| 00:52:42 |
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YES, NO SIGNIFICANT DIFFERENCE. |
| 00:52:46 |
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MR. DAVIS? |
| 00:52:50 |
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THIS CONCERNS THE SEC. BOTH THE CHAIRMAN AND I WERE INSTRUMENTAL IN SHAPING LEGISLATION THAT REMOVED... |
| 00:53:39 |
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YES, WE DID GIVE A HIGH GRADE TO FANNIE MAE AFTER THEY WERE -- IN 2002, AFTER THEY WERE CLEARED BY... |
| 00:54:31 |
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FEDERAL BANK REGULATORS WARNED THEM TO REIN IN THEIR RISKY SUBPRIME LINDY -- LENDING BUSINESSES. ... |
| 00:55:00 |
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VERVEER YES, THERE WERE. THAT IS ONE OF MY PRIMARY CONCERNS. THE POTENTIAL MARKET OVERSIGHT FROM SHORT... |
| 00:55:28 |
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MR. WALLISON? |
| 00:55:30 |
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I THINK THIS IS A GOOD EXAMPLE OF THIS SAY REGULATION THAT IS OFTEN MISPLAYS. THE REGULATORS HAVE... |
| 00:57:02 |
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NO ONE WANTED TO STOP THAT. |
| 00:57:05 |
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THE PROBLEM IS NOT SUBPRIME BUT THE RISKY LENDING. IN SOME SITUATIONS, IT HAS BEEN PROFITABLE. THE... |
| 00:58:09 |
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ON THE QUESTION OF WHETHER WE SHOULD HAVE KNOWN OR DID NOT KNOW, I WOULD JUST SAY THAT IN LOOKING... |
| 00:58:40 |
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THANK YOU, MR. DAVIS. |
| 00:58:46 |
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MISS MINOW, WHEN I WENT TO CHURCH YESTERDAY IT WAS INTERESTING THAT ALMOST EVERYBODY CAME UP TO ME... |
| 01:01:11 |
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YES. |
| 01:01:13 |
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WHY WAS THAT? |
| 01:01:17 |
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IN MY OPINION, MANAGEMENT GET PAID LESS. -- LAST. YOU PAY THE SHAREHOLDERS, YOU PLAY THE EMPLOYERS,... |
| 01:01:32 |
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WHEN I TALK TO PEOPLE IN MY BLOG, YOU SAID SOMETHING INTERESTING. BASED ON VOLUME INSTEAD OF QUALITY... |
| 01:01:50 |
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THAT IS SET IS AT MY COMPANY. |
| 01:01:53 |
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MR. FULD WILL COME IN HERE IN AN HOUR AND YOU KNOW THAT HE WILL SAY? IT IS EVERYBODY'S FAULT OF MINE.... |
| 01:02:00 |
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HE WAS. HE WAS THE CAPTAIN OF THE SHIP. YORK FAMILIAR WITH THE EXPRESSION, BUT BUT STOPS HERE. IT... |
| 01:02:14 |
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MR. WALKER WAS THE GLOBAL HEAD OF INVESTMENT AT THE TIME. THE NAME SOUNDS FAMILIAR. HE ALSO HAPPENS... |
| 01:03:18 |
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YOU ARE ACTUALLY RIGHT. I AM HORRIFIED IT THAT, ACTUALLY HORRIFIED. I CAN THINK ABOUT WHAT YOU COULD... |
| 01:03:31 |
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I WONDER HOW HE SLEEPS AT NIGHT. MR. SMITH, I SEE YOU SHAKING YOUR HEAD. |
| 01:03:39 |
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IT IS OF INTEREST TO ME THAT NOWHERE IN THAT CONVERSATION, NO WHERE IN THEIR WAY OF THINKING AS THE... |
| 01:03:51 |
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MY TIME IS UP. |
| 01:03:53 |
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THANK YOU, MR. CUMMINGS. MR. MICA. |
| 01:03:58 |
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IT IS IMPORTANT THAT OUR COMMITTEE INVESTIGATE HOW WE GOT INTO THIS FINANCIAL MESS. I BELIEVE AMERICANS... |
| 01:09:47 |
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THANK YOU, SENATOR MIKE APPEARED I WANT TO ROLL THE DICE A LITTLE BIT MORE. |
| 01:09:52 |
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YOU CAN PUT THE REST OF THE STATEMENT IN TO COMMENT. |
| 01:09:56 |
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SINCE KARZAI IS GAG FROM EITHER GIVING -- |
| 01:10:02 |
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IS YOUR TURN NOW. |
| 01:10:05 |
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WE HAVE THE OPPORTUNITY TO ASK QUESTIONS. |
| 01:10:09 |
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MR. KUCINICH, YOUR TURN ASK QUESTIONS. BUT I THINK THE TOURNAMENT. -- I THANK THE GENTLEMAN. HE... |
| 01:10:30 |
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BECAUSE MUCH OF THE PROBLEM -- |
| 01:10:32 |
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DE WHAT IS THE CLOSELY TO THE MICROPHONE? |
| 01:10:35 |
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MUCH OF THE PROBLEM THAT THIS ATTENDED TO ADDRESS IS CAUSED BY A LACK OF REGULATION BY FANNIE |
| 01:10:41 |
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THANK YOU, SIR. |
| 01:10:45 |
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THE ASSETS THAT ARE NOW ON THE BALANCE BOOKS OF BANKS AND SECURITIES AROUND THE WORLD CAME FROM THE... |
| 01:10:55 |
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THANK YOU, SIR. I WANT TO SAY THAT I AGREE WITH YOU. THE AMERICAN PEOPLE ARE ANGRY. I VOTED AGAINST... |
| 01:13:03 |
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YES, I AM CONCERNED ABOUT THAT. BUT I HAVE TO SAY THAT I THINK THE REASON -- AND I AM NOT SAYING... |
| 01:13:54 |
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YOU THROAT LEMON BROTHERS OVERBOARD. DOES THAT HELP GOLDMAN SACHS? |
| 01:14:03 |
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I THINK IT IS CLEAR THAT GOLDMAN SACHS BENEFITED FROM LEHMAN BROTHERS GOING UNDER. |
| 01:14:10 |
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IS THERE AN APPARENT CONFLICT OF INTEREST? |
| 01:14:12 |
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YES, THERE WAS. |
| 01:14:14 |
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CAN YOU ELABORATE? |
| 01:14:18 |
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THAT IS PART OF THE PROBLEM OF REGULATING AND BAILING OUT IN THE FINANCIAL SECTOR. WE DO REGRESSIONS... |
| 01:14:32 |
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I WANT TO THANK YOU FOR THAT. WHAT WE'RE CONFRONTED WITH IS THAT BAILOUT LEGISLATION, IT GIVES SECRETARY... |
| 01:14:56 |
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IT CONCERNS ME GREATLY. EVEN THOUGH THE LEGISLATION HAS ALREADY PASSED, IT IS GOOD AT THESE HEARINGS... |
| 01:15:24 |
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MESHESTHANK YOU VERY MUCH. |
| 01:15:26 |
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I HAVE UNANIMOUS CONSENT? IT STATED. |
| 01:15:30 |
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I LIKE TO ASK UNANIMOUS CONSENT TO SUBMIT FOR THE RECORD THE FINAL VOTE OF ROLL CALL 570, THE REPEAL... |
| 01:16:26 |
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WITHOUT OBJECTION, THAT WILL BE ORDERED. |
| 01:16:31 |
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THANK YOU, MR. CHAIRMAN. I ALSO VOTED AGAINST THE BAILOUT PACKAGE. I BELIEVE THAT IT DID NOTHING TO... |
| 01:20:34 |
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MR. TURNER, YOU DESCRIBE VERY ELOQUENTLY A SECOND TYPE OF HOUSING PROBLEM THAT WE ARE HAVING IN THIS... |
| 01:21:34 |
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MR. TURNER, I WANT TO REPEAT THAT ONE OF THE MOST IMPORTANT FACTORS IN CREATING THIS PROBLEM WERE... |
| 01:22:16 |
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WE TALK ABOUT FALLING HOUSE PRICES. IT WILL BE INTERESTING TO GET INTO THE SECURITIES AND LOOK AT... |
| 01:22:34 |
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I AGREE, AND THE TITLE SEARCHES WERE NOT COMPLETED. |
| 01:22:37 |
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THANK YOU, MR. TURNER. |
| 01:22:47 |
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I WANT TO THANK OUR PANEL FOR TESTIFYING. WE WILL TRY TO UNDERSTAND THE PROCESS THAT GOT US INTO THIS... |
| 01:23:50 |
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NO, I BELIEVE IT IS HORRIFIC. I CANNOT BELIEVE THAT HE HAS THE PUTS BUT TO SAY SOMETHING LIKE THAT... |
| 01:24:04 |
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I THINK HE IS DEFINITELY RESPONSIBLE FOR HAVING A TO A BREAK -- AGGRESSIVE POLICY, TOO MUCH SHORT... |
| 01:25:00 |
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MR. SMITH, YOU ARE THE ONLY INVESTOR ON THE PANEL. YOUR VIEWS? [INAUDIBLE] IS YOUR MIKE ON? |
| 01:25:14 |
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I CERTAINLY CALL HIM AS POSSIBLE. I THINK THEY TOOK CONSCIOUS DECISIONS TO MAKE RISK THAT WENT FAR... |
| 01:25:40 |
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THANK YOU. MR. ZINGALES, IF I COULD BUT YOU AND MR. FULD POSITION, LEHMAN BROTHERS PAID OUT $5 MILLION... |
| 01:26:15 |
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NO, I DO NOT THINK THAT THEY WERE. I AM A REAL RADICAL ON THE SUBJECT OF CEO SPOT SALES. HE WAS ALSO... |
| 01:26:31 |
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THEY WERE NOT WISE DECISIONS. HE SHOULD HAVE SAVED AN INCREASE THE EQUITY BASE, NOT USED IT AT THAT... |
| 01:26:40 |
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I NOTICE IN JUNE 2008, THE LEHMAN BROTHERS HAD AT $2.8 BILLION LOSS. THAT SAYS EVERYTHING -- THAT SET... |
| 01:27:04 |
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I DO NOT KNOW THE EXACT AMOUNT. |
| 01:27:08 |
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DO YOU, MISS MINOW? |
| 01:27:09 |
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I DO NOT. |
| 01:27:11 |
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I BELIEVE IT WAS $6 BILLION OR LESS. IF YOU TAKE A $10 BILLION OFF THE VOTES, YOU LOST THAT OPPORTUNITY... |
| 01:28:32 |
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HORRIFIED. WHEN YOU KNOW THAT YOU ARE LOW ON CASH, WHEN YOU KNOW YOU'VE EXPOSED HER COMPANY TO WHAT... |
| 01:29:03 |
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MISS WATTS AND -- MRS. WATSON CORA TO MARGARET'S I THINK THE EXPERTS FOR COMING OUT THIS MORNING. ... |
| 01:30:58 |
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THANK YOU, MRS. WATSON. AS I SAID IN MY TESTIMONY, WE RATE OF BOARD ON THE DECISION THEY MAKE AND... |
| 01:31:42 |
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ONE OF THE BIGGEST PROBLEMS IN CORPORATE GOVERNMENT IS HOW ENTRENCHED THE BOARD CAN BECOME. UNDER... |
| 01:32:46 |
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THIS IS A CRUCIAL REFORM. I HAVE IN MY WRITTEN REMARKS. AT THIS POINT, I ALWAYS LOVE BRINGING THIS... |
| 01:33:34 |
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THE ONLY PLACE THAT I HAVE EVER SEEN WHERE -- YES, MIKE IS ON. THE SHAREHOLDERS REPRESENTED IS NOT... |
| 01:34:03 |
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I COMPLETELY AGREE WITH YOU. THERE ARE VERY FEW THINGS THAT THE UNITED STATES CAN LEARN FROM ITALY,... |
| 01:34:50 |
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MR. HIGGINS? |
| 01:34:51 |
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THANK YOU, MR. CHAIRMAN. JUST A COUPLE THOUGHTS. VIRTUALLY EVERY RECESSION, THERE ARE SEVERE ECONOMIC... |
| 01:37:00 |
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CLEARLY THEY WERE NOT GIVING AN HONEST ASSESSMENT. IT WAS UNFORTUNATELY -- NEITHER WERE THE BOOKS... |
| 01:37:42 |
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PROFESSOR ZINGALES, WHAT IS YOUR VIEW? SHOULD MR. FULD HAD BEEN TRUTHFUL WHEN HE SAID END JUNE 2008... |
| 01:37:58 |
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IT IS HARD TO IMAGINE THAT IT WAS NEVER STRONGER THAN THAT. I THINK IT IS CLEAR THAT IT WAS A MOMENT... |
| 01:38:36 |
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MR. FULD HAD A VESTED INTEREST IN PAINTING A ROSY PICTURE AT LEHMAN BROTHERS. IF HE HAD DISCLOSED... |
| 01:39:07 |
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I WAS JUST MENTIONING, I SHOULD HIT TRANSPARENCY A LITTLE HARDER AND MY ANSWER. I APPRECIATE THE LID... |
| 01:39:44 |
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THERE ARE TO BUILD NEW WAYS TO GO TO REGULATE AN INDUSTRY. YOU CAN HAVE VERY TIGHT REGULATION. IF... |
| 01:40:23 |
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THANK YOU, MR. HIGGINS. THIS IS MCCOLLUM. |
| 01:40:37 |
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I WANT TO GO BACK TO SEPTEMBER 10. THAT IS FIVE DAYS BEFORE THE BANKRUPTCY. IS MY UNDERSTANDING THAT... |
| 01:41:09 |
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I DON'T HAVE ANY INFORMATION ABOUT THAT. CHRIS BY UNDERSTANDING IS THAT TIME THEY WERE MAKING THIS... |
| 01:42:13 |
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ACTUALLY, THE ROLE OF LEHMAN BROTHERS IS RELATIVELY LIMITED. TABLE FIVE IN MY LONG TESTIMONY, THE... |
| 01:42:41 |
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WHEN THERE IS LACK OF CONFIDENCE IN THE MARKET, TO WHAT DEGREE DID THESE CREDITS WATTS -- THEY WERE... |
| 01:43:23 |
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IF THEY WERE SELLING INSURANCE THAT WOULD HAVE BEEN CREATED, BUT I DON'T THINK PEOPLE WOULD A BOUGHT... |
| 01:43:42 |
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THAT AS EACH ONE OF THE PANEL TO REFER TO THE DISCUSSION ABOUT PRIVATIZING SOCIAL SECURITY? AS WE... |
| 01:44:15 |
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THE BEAUTY IN OUR VIEW AS A PENSION SYSTEM IS THAT WE ARE ABLE TO PULL AT LEAST SOME OF THE MARKET... |
| 01:45:22 |
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THERE ARE MANY DIFFERENT PROPOSALS FOR PRIVATIZATION. IT IS DIFFICULT TO KNOW EXACTLY WHICH TYPE OF... |
| 01:46:04 |
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THINK YOU VERY MUCH. DID ANYONE ELSE WISH TO RESPOND TO QUESTIONS. MR. VAN HOLLEN. |
| 01:46:13 |
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I THINK ALL THE WITNESSES FOR BEING HERE. I WANT TO PICK UP ON A POINT THAT MS. MINOW RAISED IN HER... |
| 01:49:24 |
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I COULD NOT PUT IT IN BETTER WORD THAN YOU DID. THAT WAS PERFECT. I HAD TO LAUGH IT -- THAT YOU SAID... |
| 01:49:56 |
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LET ME READ THEIR DESCRIPTION OF WHY THEY DESERVE THIS. THESE EXECUTIVES ARE "VERY SERIOUS SENIOR... |
| 01:50:36 |
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THAT IS THE POINT I MADE EARLIER. I DO NOT THINK THEY SHOULD BE ALLOWED TO SELL THEIR STOCK UNTIL... |
| 01:50:57 |
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MR. SMITH, AS THE TYPE OF PERSON WHO TRUST THESE PEOPLE WITH LOTS OF DECISION, IS THAT THE TOP OF... |
| 01:51:04 |
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CERTAINLY NOT. WE WANT TO BE ABLE TO BE IN THE BOARD ROOM AND HAVE REPRESENTED IN THE BOARD ROOM THAT... |
| 01:51:25 |
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MR. COOPER? |
| 01:51:30 |
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THANK YOU, MR. CHAIRMAN. I LIKE TO EXPLORE THE ROLE OF EXCESSIVE LEVERAGE AND THE DOWNFALL OF LEHMAN... |
| 01:51:55 |
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SURE, LET ME MAKE SURE THAT WE'RE TALKING ABOUT THIS. WHEN YOU BUY A HOUSE AND YOU PUT 10% DOWN, YOU'RE... |
| 01:53:52 |
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LEHMAN BROTHERS WAS UP 27 TIMES AND THEN IT WENT UP TO 37 TIMES, AND NOW THERE ARE NO INVESTMENT BANKS... |
| 01:54:49 |
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BUT THERE IS NOT A NUMBER THAT IS THE RIGHT NUMBER UNDER ANY CIRCUMSTANCES. |
| 01:54:54 |
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BUT IT SOUNDS TODAY THAT SINCE NO FIRM IS LEVERAGED AT 30-40 TO ONE, THAT MUST BE TOO MUCH, RIGHT?... |
| 01:55:23 |
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THE PROBLEM IS THAT THE MARKET VALUE OF THE EQUITY DEPENDS CRUCIALLY ON THE MARKET VALUE OF THE ASSETS.... |
| 01:55:53 |
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THE CONTRACTION IN CREDIT BECAUSE OF EXCESSIVE LEVERAGE, PLUS $26 BILLION IN CAPITAL, WHICH WE QUESTION... |
| 01:56:37 |
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AS I SAY IN MY TESTIMONY, THEY WERE TOO AGGRESSIVE IN THEIR LEVERAGE. THAT IS WHY THEY SHOULD NOT... |
| 01:57:29 |
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I GUESS ALL THE BANKS ARE NOW COMMERCIAL BANKS. BUT THERE IS A SPELLING OUT OF IN THE AVERAGE NUMBER.... |
| 01:57:45 |
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THANK YOU, MR. CHAIRMAN. WE OF ALL ALLUDED TO THE FACT THAT THERE ARE A LOT OF PEOPLE ANGRY IN THE... |
| 02:00:52 |
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I WILL TAKE THE FIRST CUT AT THIS. THINK OF THE FOLLOWING. YOU ARE HAVING A MONTHLY MANAGEMENT MEETING... |
| 02:02:18 |
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I AM MORE OF AN ANTHROPOLOGIST, BECAUSE YOU HAVE TO LOOK AT THE ANTHROPOLOGY OF THE BOARD ROOM. WHEN... |
| 02:03:00 |
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THEY CALLED MR. FULD THE GORILLA, RIGHT? MAYBE THEY SHOULD OF HAD JANE GOODALL THERE AS THE ANTHROPOLOGIST.... |
| 02:03:09 |
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THANK YOU, MR. SARBANES. MR. WELSH? |
| 02:03:15 |
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THANK YOU, MR. CHAIRMAN. I HAPPEN TO AGREE WITH THE SUMMIT CRITICISM OF FANNIE MAE AND FREDDIE MAC.... |
| 02:04:12 |
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NO, THE RESTRICTION ON FANNIE MAE AND FREDDIE MAC FROM LOBBYING COMES TO THE FACT THAT THEY ARE NOW... |
| 02:04:35 |
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LET ME CLARIFY THE DISTINCTION BETWEEN AT A PAID LOBBYIST AND REPRESENTATIVES ON THE PERIL OF FANNIE... |
| 02:04:51 |
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LOBBYISTS HAVE A VALUABLE FUNCTION. CONGRESS SHOULD CONSULT WITH, LISTEN TO LOBBYISTS. YOU HAVE TO... |
| 02:05:14 |
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I DO AGREE WITH YOU THAT LOBBYING IS A VERY VALUABLE ACTIVITY FOR PEOPLE TO COME IN AND PETITIONED.... |
| 02:05:25 |
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OF COURSE. FOR INDIVIDUAL COMPANIES, IF I COULD JUST FINISH THE QUESTION, IT IS VERY IMPORTANT FOR... |
| 02:05:49 |
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I DO NOT WANT TO TURN THIS INTO LOBBYING OR NOT, BUT THE QUESTION REALLY HAS TO DO WITH THE FACT THAT... |
| 02:06:04 |
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YES, I THINK THE REMARKS SHOULD NOT BE USED FOR LOBBYING. BUT I THINK THAT BLOGGING SERVES A USEFUL... |
| 02:06:25 |
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I WILL ASK MS. MINOW. YOU LOOK LIKE YOU WANT TO WEIGH IN ON THIS. |
| 02:06:33 |
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I HOPE THE COMMITTEE WILL GET BETHANY MCLEAN'S ARTICLE IN "FORTUNES" MAGAZINE ABOUT LOBBYING. THEY... |
| 02:06:57 |
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IF YOU HAD A STRONGER SHAREHOLDER REPRESENTATION ON THE BOARD, SO THE POLICIES DICTATED BY THE COMPANY... |
| 02:07:14 |
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ABSOLUTELY. THAT IS -- THE KEY IS THAT IT IS REALLY THE SOLUTION. WHAT WE NEED TO HAVE THIS BALANCED... |
| 02:07:32 |
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DR. WESCOTT, DO YOU HAVE ANYTHING TO ADD TO THIS? |
| 02:07:34 |
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KNOW. -- NO. |
| 02:07:43 |
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WE HAVE BEEN ASKED ABOUT CORPORATE PAY, BECAUSE IT IS A SYMBOL OF EXCESS AND ABUSE. MR. MOZILO OF... |
| 02:08:38 |
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YES. |
| 02:08:42 |
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MR. ZINGALES. MR. WESCOTT? |
| 02:08:46 |
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YES, THEY SHOULD HAVE THE RIGHTS OF A PART OWNER. |
| 02:08:54 |
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MR. WALLISON, WHAT ABOUT YOU? |
| 02:08:58 |
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YES, IF IT WAS NOT PROPERLY HEARD, THE SHAREHOLDERS SHOULD BE ABLE TO GET BACK. |
| 02:09:09 |
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THEY PUT IN PLACE THE ROCK IN THE BEAMS C--- ROT IN THE BEAMS THAT CAUSED IT TO FALL DOWN. |
| 02:09:22 |
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THANK YOU, MR. WELCH. MR. SHAYS? |
| 02:09:30 |
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THANK YOU, MR. CHAIRMAN. I WILL MAKE SOME REFERENCE TO MY STATEMENT AND HAD BEEN HOPING I COULD DO... |
| 02:13:58 |
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I WOULD SUGGEST THAT WE MAKE REFERENCE TO ALL OF THIS, AND PEOPLE CAN AND LINK INTO THOSE RATHER THAN... |
| 02:14:16 |
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IT REQUIRES US NOT TO JUST LOOK AT CEOS OF LEHMAN BROTHERS OR AIG, BUT AT OURSELVES AND THE RICHARD... |
| 02:14:38 |
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WE HAVE A FIGHT HEARINGS SCHEDULED ON THE ISSUES OF WHERE WE ARE IN THE ECONOMY -- WE HAVE A FIVE... |
| 02:15:11 |
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GIVEN THAT THE HOUSING MIGHT -- HOUSING MARKET IS WHAT BROUGHT DOWN EVERYTHING ELSE, WHY WOULD WE... |
| 02:15:33 |
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WELL, I HAVE NO REASON NOT TO THE CONGRESS. YOU'LL BE HAPPY TO LOOK UPON THIS. IT HAS BEEN TOLD BY... |
| 02:16:17 |
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GIVEN THE IMPORTANCE OF THIS HEARING, AND AGAIN, ASKING FOR FAIRNESS FOR BOTH SIDES, I WOULD ASK UNANIMOUS... |
| 02:16:35 |
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THE CHAIR IS GOING TO OBJECT TO THAT. WE HAVE HAD A VERY LONG TIME WITH THIS PANEL, AND WE HAVE MR.... |
| 02:17:07 |
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I WILL CONTROL AND YELLED TO MY COLLEAGUE 3 MINUTES. -- I WILL CONTROL IT TO ANY YIELD TO MY COLLEAGUE... |
| 02:17:24 |
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I AND THE RANKING MEMBER OF THE LARGEST COMMITTEE IN CONGRESS. I CHAIRED THE SUBCOMMITTEE, AVIATION... |
| 02:18:26 |
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THERE IS NOTHING TO REGULATE AT THE MOMENT. THERE ARE SECURITIES FIRMS WHICH COULD BECOME INVESTMENT... |
| 02:18:36 |
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SOME OF THE THINGS ARE RAISED HERE, TRANSPARENCY, LEVERAGING. WOULD YOU SAY THAT BY FANNIE MAE REDUCING... |
| 02:19:26 |
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CONGRESSMAN -- |
| 02:19:30 |
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IS YOUR MICROPHONE ON? |
| 02:19:33 |
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SORRY. THE CAPITAL OF FANNIE MAE AND FREDDIE MAC WAS SET BY STATUTE. THAT IS ONE OF THE REGULATORY... |
| 02:19:46 |
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BUT WITH MOST OF THESE, WALL STREET FOLLOWED. RAINS -- FRANKLIN RENTS ONLY -- FRANKLIN MAYES TOOK... |
| 02:20:26 |
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COUNTRYWIDE, YES. |
| 02:20:31 |
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HOW IS THIS, MR. AND MRS. AMERICA? 5 AND RAINS RECEIVED A 5.1% ALONE FOR 10 YEARS -- FRANKLIN RAINES... |
| 02:21:15 |
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WELL, THERE HAS BEEN GREAT ALL AROUND. -- GREED ALL AROUND. |
| 02:21:24 |
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WAS IT AGREED, MR. SMITH? OR JUST A GOOD DEAL FOR ELECTED OFFICIALS? |
| 02:21:31 |
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I WOULD CERTAINLY SAY THAT IT IS NOT ACTIONS IN THE BEST INTERESTS OF SHAREHOLDERS. |
| 02:21:40 |
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I THINK THERE ARE PROFOUND CONFLICT OF INTEREST AND I HOPE THERE IS OVERSIGHT OF THE FANNIE MAE AND... |
| 02:21:50 |
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THERE IS PLENTY OF BLAME TO GO AROUND. FANNIE MAE ACTION LOST MARKET SHARE IN SOME OF THESE AREAS.... |
| 02:22:02 |
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TRYING TO KEEP UP WITH WHAT THE GOVERNMENT WAS DOING. |
| 02:22:10 |
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BUT -- CONFLICT OF INTEREST IS ALWAYS DANGEROUS, NO MATTER WHERE IT IS. ALWAYS DANGEROUS. |
| 02:22:23 |
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HOW GENNADY BRING THIS UNDER CONTROL? WE WILL GO DOWN THE PANEL -- HOW, AGAIN, DO YOU BRING THIS UNDER... |
| 02:22:33 |
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THERE WAS AN EXCELLENT BILL OUT OF THE SENATE BANKING COMMITTEE IN 2005 THAT WOULD ALLOW REGULATORS... |
| 02:22:56 |
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WHO WAS CHAIRMAN AND WHO BLOCKED IT AS -- / |
| 02:23:03 |
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GENTLEMEN, YOUR TIME IS EXPIRED. I DO NOT THINK WE OUGHT TO USE THESE HEARINGS AS AN OPPORTUNITY TO... |
| 02:26:56 |
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YES, IT IS. |
| 02:26:59 |
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WE HAVE TO RECOGNIZE THAT THERE ARE PEOPLE WHO HAVE BEEN ABLE TO PLAY GAMES WITH OTHER PEOPLE'S MONEY... |
| 02:28:48 |
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LET US TAKE A FEW MINUTES TO RECESS WHILE THIS PANEL LEAVES, AND THEN WE WILL HAVE MR. FULD. LET US... |
| 02:30:21 |
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LIVE FROM THE RAYBURN HOUSE OFFICE BUILDING, YOU ARE WATCHING THE FIRST OF FIVE HOUSE HEARINGS ON... |
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.
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Waxman, Henry
U.S. Representative (Former) [D] 24 -
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