Franken on GOP blocking bank bill: ‘This is a perversion of the filibuster’

With a filibuster on a financial reform at hand in the U.S. Senate, Sen. Al Franken took Republicans to task Monday evening for blocking reform aimed at preventing the banking disaster that caused the bailout of the financial industry in late 2008. Franken called the Republican filibuster a “perversion” of Senate rules and took the Republican party to task for misrepresenting the bill. It’s the same message he brought to the Senate floor in March.

Republicans, and especially Rep. Michele Bachmann, have repeatedly called financial reform “another bailout” for the financial industry.

“This is not a taxpayer-funded bailout. And let me tell you why. First, it’s not a bailout. The bank would get liquidated,” said Franken. “Secondly, it’s not taxpayer-funded. Because taxpayers don’t fund it. The banks do.”

He added, “I really don’t know how to make this ANY clearer to my colleagues across the aisle.”

He said that Republicans blocking reform could result in another financial crisis and that Republicans were misusing the filibuster.

“I’ve said it before and I’ll say it again. This is a perversion of the filibuster. And a perversion of the Senate,” he said. “Let’s us turn our attention back to legislating, which is the reason voters put us here in this august body in the first place.”

Here’s a transcript of Franken’s remarks:

Mr. FRANKEN. Mr. President, I rise this evening to talk about how we can take a big step toward holding Wall Street accountable and stopping it from lining its own pockets at the expense of America’s families.

Last month, as part of the health care reconciliation bill, the Senate also passed student loan reform that ended a longtime corporate welfare program. Our reforms halted the enormous subsidies the Federal Government paid to lenders in the student loan market, replacing it with a program called Direct Lending that slashes $61 billion–$61 billion–in cost to the taxpayers by cutting out the middleman and lending to students directly. The money saved will go toward Pell grants, helping kids from working families go to college.

Today, as we debate Wall Street reform, we continue that fight to end the stranglehold big banks have on our economy and, by extension, on the everyday life of the American people.

Over the past year and a half, we have seen, in stark reality, the devastating impact Wall Street can have on our economy when it is left to its own devices. Fueled by unbridled greed, a love of risk–well, the love of risking other people’s money–and an obsession with profit at all costs, banks bought up toxic mortgages by the thousands, driving the subprime lending market in the process. Credit rating agencies, conveniently funded by the same institutions they were rating–that is a bad idea–gave the resulting securities their highest AAA rating, and the initial ingredients of the financial crisis were born. Incidentally, today Paul Krugman wrote in the New York Times that 93 percent of these AAA-rated subprime mortgage-backed securities have since been downgraded to junk status–93 percent. That is hard to do on anything.

Several bank failures and a $700 billion-plus bailout later, the American people were left paying the price. By October of 2009, unemployment had jumped to 10.1 percent and even today it remains at 9.7 percent. By contrast, just 10 years ago, in October of 2000, the unemployment rate was 3.9 percent. Americans have lost $11.7 trillion–$11.7 trillion–in personal wealth since the financial crisis, and housing values have fallen 15 percent in just the past year. We have seen our retirement accounts shrink and our plans for the future delayed, sometimes indefinitely–and all because of Wall Street’s incessant need to rack up enormous profits.

Over the past few decades, Wall Street’s profits have gone through the roof. In 1987, the financial industry represented only 19 percent of all domestic corporate profits. By 2009, that number was almost 32 percent. Thirty-two percent of all the Nation’s corporate profits went to the financial industry.

The dramatic growth of the financial services industry would be fine if Wall Street was actually adding value–helping to invest in our economy in constructive ways and to create jobs. But, instead, they have been making bets on bets on bets on bets. It is one thing to have a commodities futures market that provides the resources for farmers to put crops in the ground, but it is another thing altogether when Wall Street is just gambling in areas where they have no real productive interest. Let’s put Wall Street back to work investing in America, not gambling with its future.

The bill we are discussing tonight would ensure that Wall Street can never again bilk the American people in the same way. It would create a Consumer Financial Protection Bureau–a true cornerstone of this bill. The bureau would be an independent watchdog for consumers housed inside the Federal Reserve. The bureau would force big banks and credit card companies to offer clear terms to families on credit cards, student loans, on retirement financial products. Just as importantly, it would make sure mortgage companies cannot sell misleading loans and mortgages to consumers so we avoid the kinds of problems that led to this crisis in the first place.

For the first time, the bill would set up a council of regulators that would oversee the financial system as a whole. This council would monitor risk across the entire system and ensure that industries and companies do not fall through the cracks between regulatory agencies. This bill also includes a tough section on derivatives to ensure greater transparency and tighten their regulation.

It ends taxpayer bailouts by forcing banks to pony up $50 billion to pay for their own funeral if they fail. This is not a taxpayer-funded bailout, and let me tell you why. First, it is not a bailout. The bank would get liquidated. Secondly, it is not taxpayer funded because taxpayers do not fund it. The banks do. I do not know how to make this any clearer to my colleagues across the aisle. Yet tonight we find ourselves where we are.

Let me be clear: We cannot afford not to pass this bill. Americans are demanding we act to hold Wall Street accountable. Without further protections, it would be easy to have another crisis such as the one we have just been through. Yet tonight, despite the urgency and the importance of this bill, my colleagues across the aisle are filibustering our attempt to reform Wall Street and not just the bill itself. They have blocked us from even starting debate on the bill by filibustering the motion to proceed. They have done this despite the fact that many of them actually agree with substantial portions of the bill. They are doing this because they want to stop government from actually being able to accomplish anything.

I have said it before, and I will say it again. This is a perversion of the filibuster and a perversion of the Senate. Let’s turn our attention back to legislating, which is the reason voters put us in this august body in the first place.

I urge my colleagues to support the Wall Street reform bill. We often talk on the Senate floor about wanting to make sure American families are protected. Now we have a chance to actually do something about it. America cannot afford another financial crisis. That is now in our hands in this body, and it is one of our greatest responsibilities.

I thank the Presiding Officer. I yield the floor.