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Guest is out hello again and unpredictable -- Yeah mark yes he does wants to tax stock trading at eight are all these bailed out.
He both -- -- but then compared bankers.
Basically you come to us today.
-- -- bicycles after buying Girl Scout Cookies and helping old Mother Teresa.
We're sorry we didn't mean it.
We won't do it again trust us.
Do you understand that this is a little difficult the most of my constituents.
Did you learn your lesson.
The same people who created outside beings who created CDOs who created credit default swaps you created them.
That's where you and any look.
I was -- On the street and they'll say oh well.
Back ready -- bonuses.
-- That's how would sound that we were on the on their questioning the bankers.
-- let me welcome to happy hour representative Michael -- who want -- he's a Democrat from Massachusetts and congressman.
First of all thank you very much for joining us for happy hour and let me start.
With the news today to leading Republicans calling for an end to that that too big -- -- -- a lot -- -- -- a lot of people -- on -- -- Are you on board with letting state.
Citigroup AIG go under or do we have to continue funding these corporate fat cats with the money that's taking at a -- paychecks.
Week after week after.
I have no problem with the right banks in the right into he's going under when the time is appropriate.
At the moment both of those entities for all intents and purposes owned by us anyway.
Is all the -- ways to go one -- one is technically going under the other one is going through the back door and on those two entities who have already gone through the back door we just haven't actually.
-- depression yet.
Our congressman let me do it this way I listen up all the outboard.
With you saying hey you guys did this wrong but going forward there's a lot of money that these banks are gonna receive -- so far.
I've heard nothing tied to their.
Let's plug college commitment to lend that money going forward I agree why haven't -- in congress gone ahead and said you receive money -- -- -- Because people like -- in the minority I can't get that thing done we tried I tried to do it last time in -- in the fall tried to begin with the last stimulus.
We're trying week we actually passed the bill allows for tickets to the senate.
My hope is if we can't get it done the congress at least the administration will do it they don't need a law to do that.
But when you've got new loan somebody forty billion dollars he's certainly entitled ties me streams -- -- you want.
But kind of attention they get they're gonna criticize them for nationalized and then get going at all I mean that's just a -- I'm not sure what how we tied that -- -- we give the banks welfare money and then we don't want them to land that we do want them to land.
We actually step back and didn't end up in force the contracts of the banks signed we enforce the contract with the homeowners -- and don't make us renters and sabres -- everybody else out.
On on some of that magnitude that is a balance in the bottom line this is not about individuals I'm not really worried about wanted to -- I'm not even worried about one home I'm worried about the economy as a whole and I'm afraid that simply letting -- -- continue unfettered.
Won't work I think.
We don't -- I think anybody who likes guns at all but sometimes.
He had no choice congressman that -- work you guys flooding the market work unfettered there was so much art and they -- not I mean that's just that.
I hope not I hope I hope we don't think what is an unfettered market is exactly what is got us into this trouble with CDOs of CBS isn't special investment vehicles by the banks.
All those things are unregulated and -- seed and yeah although -- -- -- -- We want to look at good units who.
-- -- -- -- -- But let's follow up on what you said before we let that go you know he's saying OK what what had -- to Eric's question.
How do we get these banks to start lending I mean -- -- at home what I said -- earlier in the shell.
It did you know people don't want government intervention yet they're saying hey we're giving them their money so we should tell them -- you know -- -- what to do.
How do you find that balance there.
It's it's a difficult balance the fine I don't want government intervention I just think it's a necessary evil at the moment.
I didn't come to congress looking to do this I was hoping the market would work the way it's supposed to work.
It hasn't the government has been required to committee because there's nobody there's no other adult in the world.
But does this I mean that we are fully -- like but it would close -- needed to get to it at the moment.
Last night if you watched Sheila -- on sixty minutes she basically said our banks that are that are too big to fail right now -- she thought.
And partly that this is a bad idea.
Do we continue to feed his speech that we continue to give these big banks that are too big to fail more money and then you know our own FDIC chairman saying.
It's a bad idea yeah.
Well holiday Jessie hasn't.
The FTSE has got the money to give some of the biggest banks but there's two different ways that was the FDIC walking in front door and just taking about Michael what.
Another is is up as a bankruptcy either voluntary or involuntary I want.
A third one is basically what would do -- politics purposes we own 80% of AIG right now -- the government we the people.
We own the -- I can count.
At least 60% of city may be more -- a significant portion of the Bank of America.
And -- -- when you own that -- -- -- this was you know any individual and Warren Buffett.
I don't 60% of the bank -- certainly be imposing a few content requirements and win pretty much not doing that.
Congressman let's switch gears for a moment explain this idea.
You have to tax stock -- -- derivative trading apparently to pay for the bailout you questioned the bankers.
What do you want to say to Treasury Secretary Timothy Geithner and actually I do -- -- -- hit on that are we gonna have to tax.
My friends the day traders at home that don't but didn't get any of the bail out there -- in Goldman Sachs.
Yeah I'm not so -- me -- -- for me I -- on this bill for that to get the discussion going.
I'm not tied into every aspect of that particular bill a but I do think it's important talk about the concept of raising revenue to pay for all of us live we're not -- thought at all.
And again there's a million ways to do it that's one way it's probably not believe that something even I would buy into it something that I want to talk about something I think it's important to put on the table.
And let's flesh it out.
It as far as what the Treasury's knowing I totally agree I think the country could be and should be doing more.
All right let's talk about that city group -- we heard the news at Citigroup gave bonuses.
-- the form instead of you know.
Having the junket you know and letting the get employees -- -- the top earners.
Go on these lavish retreats that taxpayer expense that -- obviously -- -- given -- give.
Billions upon billions of dollars they did so.
And I hear a lot of companies doing this where they're giving gift cards now.
You know 1000 to 3000 dollars.
What do you say about that any -- -- here we go again.
I'm not the one who's really beat up on some of the bonuses or some other some of the excesses if they're making money -- to would have you wanna do disputes between you when the shareholders.
If you're not making money using taxpayer -- -- to get the story.
You -- what a thousand old -- for 3000 all of those those -- not the people to get to make the decisions that's the policies of the bank in the policies of the people who make the loans.
I'm more interest in the bonuses going to people.
That actually had made policies that have not worked or actually work against the tax -- so I I do see is a significant distinction.
Congressman I wrote something over the weekend I guess last Friday about the omnibus spending bill for -- twenty billion dollar bill that was loaded with -- is 9000 plus.
Pork projects in their hot talk to us a little bit about that are you okay -- that kind of pork in in this kind of spending bill.
It will look like everything else somebody else's focus on the inside his -- -- so what vice Versa and we live.
All my stuff is on the Internet when I get money for bridge -- get money for social program I get money for university -- research institution.
Basically if I don't become unable to do that I am simply saying that we have profits without any knowledge whatsoever of my constituents -- my needs and in my.
The needs of Mike district.
I think that's ridiculous if you don't do it it's not as if -- somehow she's done by computer on the basis of purity it's done by bureaucrats faceless bureaucrats either with the federal the state level.
People make these decisions the only difference is I'm a person I'm elected by the people my stuff is -- trees -- all right good to be seen.
And it's like -- -- don't like bundling them they should and would be -- would unelected.
So I have the concept of of members of congress having no opinion on what should happen in their own state I think is ridiculous.
Us congressman is when I ask is there any chance the way actually.
But you guys actually go after -- -- civilly.
Some of the CEOs of these investment banks that have been lying to the Vikram Pandit the Ken Lewis says they've -- you guys in the face over and over and said -- balance sheets are buying.
And then they have to come back and -- for welfare.
I I personally again without any individuals -- I don't know enough about specific cases.
The concept is real I think -- them I think some of the credit rating agencies should go under the microscope.
And again isn't it is -- being -- which is fine where all -- and a regular basis and being criminal about it now leads the -- that the people.
-- much more in tune with what his criminal was not.
I send -- that they all looked.
Congress in my -- -- got a Massachusetts thank you very much for joining us happy hour.
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