tv U.S. Senate Sen. Warren D-MA on Financial Deregulation CSPAN March 8, 2018 12:00am-12:24am EST
on how it would affect smaller banks and customers. this is just under 20 minutes. >> i wan >> i want to commend senator for leading the fight to oppose rollbacks for wall street banks. he hases been tireless. i thank him very much for his work. this is a tough fight. this week nearly ten years to the day after we first discovered the banks crashed the economy, washington is about to take the same off the government watch list.
it makes perfect sense in washington the power to erase politicians memories. the senate is debating a bill that would roll back the bills to protect consumers and prevent another economic meltdown. yesterday i talked about how this scraps a lot of important protections and in addition it also loosens the hold on some of the same banks that wreck the economy. ten years ago a bunch of banks got giant bailouts while consumers got a punch in the gut. the excuse was they were so connected with one another and the economy that the failure of one could bring the rest of the
system down. congress passed a huge bailout for to keep this from happening again congress decided to put a small number of being that controlled more than $50 billion in assets this is about 40 of the large banks in the country to put them on a watch list. they would be on a tough federal oversight and subject to the rules to stop them from bringing down the economy again. a small bank in massachusetts would be one way into a bank with offices around the country and around the globe would get a much closer look at.
if the bill passes, washington would scrap those rules. under this bill a bank that controls up to a quarter of a trillion dollars in assets and has offices around the country and around the globe will follow the same rules and regulations and oversight as a tiny bank in adams massachusetts. that is great if you are a quarter of a trillion dollarr bank but it's not great for anyone else. it isn't about restrictions on acid measures and appropriate leverage ratios and proprietary trading. it's about keeping hard-working from getting crushed by another financial crisis.
it's supposed to be working for the american people. after the financial crisis before i ever thought about running for the senate, congress put me in charge on a panel that was supposed to police the bailout money. the hearings around the country talk to people who have been punched in the gut by the financial crisis. the father of two little girls have on a baseball cap and stretch their budget to buy a home that would get their girls into a good school. he tried to negotiate with the
and then the house was sold at an auction.house was sold theyre tell me i have 14 days to give my children out of the exhouse. he explained what happened next. my six year old came home the other day with a full sheet of paper and told me these were the people who were going to missan her because we would have to be moving. i told my daughter i don't care if i have to live in a van you will still be able to go to this school. i trust in god that we will be able to be back in this house again. several times while he testified he paused to try to get control of himself and the pain and
desperation seemed to push all of the air out of the room. i am here to ask who in the senate will fight for mr. estrada, who will fight for the millions of americans who paid the price because the big banks gameboard with the economy and lost a. i'm here to fight for every american who did everything right and saved for retirement only to watch their savings go out. he told employees not to come back the next day. hard working employees and for
all those americans who kept fighting through the crisis matter how hard it was tous keep pushing and years and years after the corporate profits rebounded and the banks were riding high on wall street again they finally got their families back on their feet. on the other side the bank lobbyists fighting for some of the biggest banks in this country. they willan tell you it isn't about these banks at all. they swear up and down they are fighting for banks that did not cause the financial crisis and they will make up claims that they are struggling under the new rules but never mind banks of all sizes arein making bittey record-breaking profits.
of the banks that would be taken off the watch list countrywide made millions of dollars by scamming consumers and at its peak it was the biggest mortgage lender in the country and it was also a subprime specialist, an expert on trapping people in loans they didn't understand and couldn't afford. it was obsessed with making as many loans as possible and squeezing out the competition. wall street packaged and sold them down the line just as quickly as countrywide could make them. how could this happen?
one reason if it had been easy on countrywide in fact the office of thrift supervision after the financial crisis that tcongress actually abolished te regulator and bank of america bought the bank of a bargain price and they lost money on the deal. of course that was nothing to what they lost when their retirement tank. thinks like countrywide had exploding payments on their little families. countrywide was one of thefi wot crisis and if it were still
around today, this bill would make it easier for them to escape government oversight. and that is just plain reckless. the no banks of this size can help bring down the financial system. we know thinks of this size can be billions of dollars of taxpayer bailouts when things go wrong. that should becot the end of the conversation, but it isn't. not here in washington. consider this, the banks that are being deregulated under this bill have done nothing to earn our trust and defense since the financial crisis. instead, they have engaged in breaking the law left and right. let's talk about a few of them. some trust has $208 billion in assets and so would be deregulated under this bill.
in 2014, some trust agreed to pay $320 million to settle claims that it misused bailout money to help distressed homeowners. the law enforcement agency that led to the investigation said the bank utterly took home honors applications to modify their mortgages, tossed them in a room and s ignored them. there were so many applications that the floor in that room buckled under the weight ofbo te documents. think about that. almost $5 billion in taxpayer bailout money they promised to help homeowners and then tossed application forms on to a file that was so big it made the floor buckle and now this congress is offering to help us loosen the oversight on databa
databank. there's a $132 billion in assets by this bill. less than a year ago grabbed by the attorney general of massachusetts of delaware for funding auto loans if new customers couldn't repay using paper work they knew was doctored and now the congress is helping hussein oversight. then there's the financial institutions that are caught discriminating. allied financial has 164 billion in assets that would be cut loose by this bill and in 2013, allied financial page $98 million to settle charges that it discriminated against minority borrowers in providing
auto loans. it was actually pretty straightforward they charged african-americans and latinos more than white people. it was huge. 235,000 nonwhite borrowers paid on average 200 to $300 more than white borrowers with similar credit profiles and now this congress is offering to help loosen oversight of this bank as well and then there are those that cheated investors. berkeley is u.s. has $175 billion in assets. they could be cut loose by this bill. in 2015, they were among the a handful of banks that were charged record fines by the federal reserve for manipulating the foreign exchange markets. the traders alluded with traders from other banks to share intel
and push the market up or down in whatever direction profited them and now this congress is offering to help lucinda oversight on barclays. last year, the fed caught the same game. $146 billion in assets and they could be cut loose by this bill and now congress is offering to help loosen oversight on pmb. finally, there are the banks that caught violating sanctions. the bank of tokyo has $165 billion in assets that can be covered by this bill. in 2013, the bank of tokyo mitsubishi settled with the new
york department of financial services for $250 million over charges that had cleared tens of thousands of transactions. they estimated that the bank wired moreo than $100 billion to countries that were under u.s. sanctions including iran, sudan and burma. the bank specifically tried to evade sanctions by telling employees to leave destination information out of the money going to those countries so they could fool the regulators and now this congress is offering to help lucinda oversight on the bank of tokyo mitsubishi. let's pause on this one. washington thinks this bank needsve less oversight a year after it got caught funneling money to dangerous regimes and
then trying to cheat rather than fix the problem. so a state banking regulator was so alarmed by this they actually put an independent monitor inside the bank to keep an eye on it and now republicans and democrats have decided this is a bank we can trust. this is nuts. these are banks that taxpayers bailed out ten years ago. they cheated customers and communities and markets and endanger the national security still republicans and democrats are joining together to loosen oversight on these banks. so what is this all about? you won't hear this coming from the supporters of this bill, but it's the truth. it's about letting the banks bas snap up the smaller banks.
it's about more consolidation in the banking industry. it's about banking profits and expanding executive bonuses. sure as heck isn't about increased funding. these banks are sitting on mountains of cash that they could land at any time. just look at their profits. they made more than two and a quarter billion dollars. some trust pocketed a cool 2.3 billion clocked in at 1.3 billion. instead of lending more money they have been plowing their massive m earnings in two beanstalk finances. just last month they announced spending an additional $745 million torc repurchase
stock. theyrd authorized a to buy back $3 billion in stock. every single one of those dollars could have been put to this new small business loan but instead it went to putting bigger bonuses and the executive's pocket. does anyone think if they have more money to burn that they will completely change course? to ask the question is to answer the question. and they are not exactly acting like they are starving for cash dot when they set up the executive's paychecks. there was more than $15 million or $14 billion all in. the ceo of huntington almost
9 million while including almost another quarter of a million dollars that the company spent to cover the ceos personal use ofof its jet. they made 7.1 million. the ceo made a of the same up fm 3.2 million in the previous year and that isn't all. the good times are rolling out these banks. there was a party to kick off the film festival this year with a cute little hot chocolate bar. american express had a shiny new headquarters building that cost $200 million. if this passes and these bankers sitting around a shiny new table in their gorgeous new headquarters decided to gamble just a little bit more just like they did in the lead up to the financial crisis, regulators may not even know it.
they are lying back in their plush seats in there just and they cook up some kind of a risky complicated investment that nobody understands until after it goes bad. regulators probably will not catch it in time and if their sales, these more dangerous things are more likely toous crumble and to bring the rest of the economy with them. thisil is madness. these rules have kept us safe for almost a decade even as the same banks have chopped at every regulation and tried to evade every rule and now washington is about to make it easier for banks to run up the risk and make it easier to put our constituents at risk, and make it easier