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Health care may be getting much of the attention in Washington it is not the only major push inside the beltway financial regulation and reform also a hot topic.
And senator Ted coffins carrying -- Judiciary Committee oversight hearing today and is focusing on mortgage fraud securities fraud.
And may be prosecuting those responsible senator Kaufman welcome back to the program thank you very much for coming on sir.
A what do you want to accomplish out of it -- thanks for -- -- what do you wanna accomplish out of today's hearing.
-- you know we pass this fraud enforcement Recovery Act.
People in the congress the president and and frankly most Americans wanted to be sure.
It was going out and found and prosecuted that any of the people who were involved financial -- in conjunction with the market meltdown our financial meltdowns we -- that to get more prosecutors more FBI agents.
What you do in the congress is if you pass the bill then you wait for a period and you happily go on oversight hearing that's what we're doing today we've got that.
Questions here's exchange commission the department just an FBI come in basic tell us what are we doing.
Define the people with creative word -- Asian financial fraud and what do we do animation and a jail.
Senator we'll admit though that a lot of the small -- brought stars are just not worth the money.
The -- down and prosecute -- there have to be some sort of cost benefit analysis -- or not.
-- I -- I think that's actually write an and I don't need to.
It's a lot like the drug business you know it we should not be out picking up everybody this in possession of you know two ounces of marijuana.
-- we got to do is find the people that -- it up and -- out and that's where we are now this is not just about the mortgage brokers.
We'll go after them and the people who made the bad appraisals and that and the folks the finance companies -- really it's the people that.
Knew -- gone -- up into these mortgage based securities and then sold them.
And the rating agencies that rated them and people were involved who fraudulently not because they didn't know that they didn't know that the people that knew that these were not.
Viable investments but sold them as viable investments and -- committed fraud and that's the people senator kind of thing we're after.
-- senator it sounds like you would like to prosecute and go after some pretty high level people at major investment banks that because you just that's -- you -- right.
Right that's exactly right -- and I think they -- the and they just announced the an indictment.
And I think that Galley and I think now I think what we're what we're.
Well we're basically saying is that there is.
Pull any reason to believe that that was fraudulent activity that came out on the average households and America's net value of the last two years between 2000.
Dropped by fourteen trillion dollars.
And we know that that a lot of that there could have been flawed people that honestly didn't that didn't know what they were doing didn't think.
That's how -- after but -- but there's really lots of evidence to believe that there were people that fraudulently gave them.
And the defense says well everybody was doing it we were carried away in -- market delirium.
You know that is not a defense and that's what we have to track down.
But what about the personal responsibility though of the homeowner who.
Was riding a wave in jumping on the train like everybody else right -- took out my home equity lines and so what it.
You have to admit that -- they're a great deal that responsibility and it's not violent day.
That's right -- -- neighbors responsibility for the -- -- -- -- -- they're paying a penalty for their mistakes that have -- say.
That was part of it but there's so many people there were Bob further up the -- just like happens so often.
The -- without the change we're not you know that's what is all about this is about going out finding those folks in prosecuting them.
Know a lot of people have the blame of the financial meltdown it isn't just those -- what -- this piece of it is we know.
That there was potential financial fraud in the major.
Primarily in and Wall Street and that's what this is all about.
Senator I've always wanted to know this but what about the role of the federal trade commission and policing all these heads that are clearly fraudulent offers whether it's.
CDs in Mexico to -- even if not maybe not fraudulent but.
Take out a home equity loan and take a vacation -- said Mexico.
-- -- -- again you're right on point it's a different from what it's just a bigger problem.
What we have is we have period for a number of years -- we just didn't regulate anything we irrigate the FTC we can regulate the FCC went into any regulation.
So lots of things that went on we're doing that too that's with a financial regulatory reform bill is all -- Is to Alter the odd that in the procedures that we get back to regulation.
And I don't want to over regulate I do not want to regulate but I think we really seriously need major regulation.
And I think we have the senate that a message to everyone that you commit a crime in this country it's a big crime you paid this -- much.
Are you preparing to issue subpoenas.
No I don't do that know what we do as you can you can you can you can subpoena people to come.
In sit in front of you don't know what.
We can't but that's not what that this is about getting the SEC.
The department of justice and FBI issued the subpoenas.
We're just asking them how are you proceeding what -- you doing -- are you pressing the FBI on that are you pressing the FBI on that.
Yeah Brian if you want if you -- -- today they're going to be this afternoon you'll see exactly what I'm talking about we're gonna ask quite tough questions on what are you doing how you allocate your resources how are you targeting -- -- -- going after.
Where you going to be doing at that -- the kind of questions that's what we're doing this hearing.
We're gonna have questions and I thought I got a pretty good -- they've set up this financial fraud task force a good sign.
It started -- -- people it takes a long time to develop these cases you know they're very complex.
But that's what -- -- about today it's going to be questioning the securities exchange commission -- consumers -- the obvious question division and -- Perkins from the FBI and also Atlanta brewer's head of the division department justice.
All right senator Ted Kaufman thank you very much sir for joining us on fox business and we will watch the -- thank you.
-- thanks for.
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