bureaucracy called the oostlesz of financial research designed to collect financial data and construct complex financial models. did you their? this new bureaucracy is given unprecedented authority, including abilities to obtain virtually any type of data it virtually any type of data it it won't from financial companies to the level of detail of what to buy your credit card. this new bureaucracy is also designed to gather data, processes and that is required to make it available to wall street firms said they can cut their costs so as for wall street now? mr. president, this bill also friends our economy that senator dodd mention treatment of derivatives. greater transparency in alterative markets is a good thing but this bill at this juncture under the guise of

promoting transparency i believe threatens main street companies and their customers for no good reason. the end user exemptions but mainstream companies through most and listen on -- and remarkable looks at that will ensure higher costs, lower growth, fewer jobs in the mission economic opportunities. in addition to mr. president, by seeking the concentrating all manner of risky products in the clearing houses the bill threatens to concentrate risk to the point of becoming systemically large which as we all know lead to government or taxpayer bailouts. mr. president, this bill can actually increase risk in our a financial system has written and decrease economic output at a time when we needed the most mr. president finally concentrating risk in america this bill will shift derivative trades offshore

to places where we have no oversight or regulatory abilities to act. mr. president, the proponents of this bill also argue their regulatory gaps are being closed and the bill somehow simplifies and rationalizes the regulatory framework at the kansas city fed president said and i quote, this bill actually increases the complexity of the regulatory structure as well as creating unnecessary costs. as is often the case with this bell, claims about what it does, does not match the language itself. they claim its regulatory simplicity, the language means there will be increased complexity. mr. president, i've highlighted here this afternoon some of the major problems in this bill. it will not in taxpayer funded bailout such as written, it provides for a drastic expansion and overreach of government into the economy and every aspect of our personal and rental lives,

it also raises the cost of risk management and threatens the ability of companies to manage risk using a derivatives while potentially accumulating risk to system proportions. makes a complex regulatory maze even more complex. mr. president, i welcome the opportunity to debate the bill and offer amendments and work with senator dodd the chairman to improve the deficiencies and strengthen this bill shortcomings. i hope that we're going to be able to do this in the. of cooperation in the days ahead. mr. president senator from connecticut. >> thank you, i say to my colleague at the then my good friend from alabama likes the bill one so we will have some work to do on this and let me again assure him and my colleagues here twice that we've had very productive talks in my friend from alabama, my two

colleagues bob corker did chairman is a lot of work and our committee over many weeks as we've divided this as thoroughly and comprehensively as possible and i think we've done that work but i respect the fact that others may have additional ideas how the chemicals were given better so i know he raise the issue here, we will work for this weekend to try to put together a legal language that has to be drafted to reflect some of these ideas we can incorporate as part of this bill and my colleague and friend from alabama has my word and we will work on them. so i think him. we've worked well together over these last 37 months and i hope this and i beg to offer to my colleagues, i just had a brief conversation with senator chambliss, we would like to offer -- i say this on my own behalf but hope senator shelby might agree -- if members have

eminence it would help in the next day or so if you could let us what those are even though we may not get to them we can start to work with our colleagues on their ideas and in some cases may except. i see my colleague, i don't know if the shares had, but we hope that if we have a the ability to accept them the, modify them so they are acceptable, so i hope that senators would take a vantage of the offer. the chair person of the agriculture committee and senator shelby and senator chambliss would share that view and see these amendments early so they can be helpful to our colleagues if possible. with that the meal to the floor my colleague from arkansas and i commend her taking over the job of chairperson, she's done a great job. looking forward to working with you in the next wicker to on this bill as well as.

>> thank you mr. president and i want to thank -- >> recognized. >> thank you mr. president and i thank senator dodd for his hard work and absolutely agree that getting members to bring for their amendments is going to be critical in terms of working with them and their ideas to see if we can't afford. we have historic opportunity to do something on behalf of our country and i hope we will work to make that happen. mr. president, i ask unanimous consent that george wilder mondavi granted privileges for the remainder of the debate on this legislation and. >> objection, it is so ordered. >> out like to ask unanimous consent that senator boxer be the next democratic speaker after senator warner. >> without objection i'm. >> thank you mr. president. i rise today to speak in support of the substitute amendment.

the substitute amendment represents a critical step toward what in restoring the soundness of our financial system. it will insure that our markets remain them work for means street and not just for wall street. we have come to a critical juncture in our nation's challenges but within those challenges we find the great opportunities. last fall, i had the honor and solemn responsibility of taking over the gavel of the committee on agriculture, nutrition and forestry. as the daughter of a very pragmatic seventh generation arkansas family, i find myself in the senate committee on agriculture when hundred 84 years with the first arkansans to ever serve as chairman of that committee and i'm proud of the work that's gone into the product we bring along with the banking bill would to this process. our committee was tasked with

putting an end to the reckless behavior that put our financial system in jeopardy. specifically bringing regulation into over-the-counter derivatives market. reforming who this is at the heart of financial regulatory reform. within a decade mr. president at this market exploded to $600 trillion in an additional value and is today and completely unregulated. last week the senate agriculture committee took a critical step toward bringing transparency and accountability to this market to passing to wall street transparency and accountability tax with bipartisan support. with the major provisions of this bill are included in this substitute i've offered with senator dodd. i appreciate the work of my colleague senator dodd in the senate banking committee staff along with the amazing staff who

from the agriculture committee to urge the bills. i appreciate the leadership of majority leader read who's committed to producing strong financial regulatory reform with guiding this bill this process. the substitute legislation takes the best of the committees products and represents strong as reform legislation today. and i to think senator dodd for his strong leadership on this combined effort. he's a longtime leader in this body and i appreciate not only all of his leadership but certainly our strong relationship and i'm grateful to all of his hard work. i like to thank the president and his treasury department for their leadership on this issue. i grieve the appreciate the strong support from chairman gansler at the trading commission because of their commitment the administration has been instrumental in bringing us to this point. i'm also mr. president the very fortunate to have a strong

partner in my good friend when ranking member senator chambliss. his thoughtfulness and the hard work of this unbelievable stuff reflected in many of the provisions we begin debating on the senate floor today. why we have had some policy differences i know without a doubt we share the goal of bringing thoughtful reforms to these markets in this legislation is a store credit it is a landmark reform. it will keep pace in the business of banking mr. president, it will prevent future bailouts into the work went down by senator dodd put an end to too big to fail. it will lower systemic risk, systemwide risk throughout the clearing mechanisms and exchange trading and real-time price transparency. it will close loopholes and make sure that the regulators have the full authority to go after those entities that would evaded or abuse the law.

if it protects jobs on main street by giving to commercial and users the ability to hedge and manage their risks. it attacks municipalities mr. president along with pensions and retirees and any government agency from county and are proprietary and that's occurred in the past. most importantly it will bring 100% transparency to what is currently a completely unregulated and dark marketplace. mr. president, this bill is true reform. this is a strong reform, but we need to remember that this is not regulation for regulation's sake. it we have an important but nearly tailored and end user exemption and appropriate restraint on the regulators were necessary. we understand that we are competing and globally financial

world. this is a robust package that balances the means a strong meaningful reform and recognizes the importance of these markets. americans are demanding transparency and accountability from their government and financial system. american consumers and businesses deserve strong reform that will ensure the u.s. financial oversight system fosters the most honest and open and reliable financial market in the world. that insures that not only does the u.s. remained the world financial leader, but most importantly that we lead by example. i look forward to working with senator dodd and my colleagues to consider amendments over the next several days and improving the substitute bill where necessary. most of pour alito mr. president come i'm looking forward to providing the american people

with the sound economies and financial regulatory system that they truly deserve. thank you mr. president and i yield the floor. >> thir. >> mr. president, thank you mr. president health and i'll say more about thune and my conclusion remarks but to, first of all, senator dodd and senator shelby, thanks for continuing the dialogue and thanks for coming through the agreement that has allowed to get this important bill on the floor with a financial collapse of 2008. there are a number of issues that have to be addressed and this is the appropriate forum now for all of those and have come on the date to hopefully at the end of the day, up with a right kind of product that is

going to make sure that situations like 2008 never occur again until my chairman and harder on the committee on agriculture she is my dear friend and we work closely together on some issues including this one. and when we have ordinances' we're able to disagree and a professional way and an appreciative as well as to her friendship. mr. president, we all know that a appropriate regulation of derivatives and specifically the swaps market is a critical component of this legislation and the agriculture committee is responsible for the oversight of the commodities futures trading commission which will become one of the key regulators of the swaps market. as the ranking member on the agriculture committee i have responsibility to ensure that we get this right. with the agriculture committee has history of not calling subject to partisan influence and have a long tradition of

checking our partisan politics and the door in ever to reach consensus so both republicans and democrats support our public before. the ag committee facilitated bipartisan deal to close the enron of loopholes in 2008. then chairman senator harkin and i were to cross party lines with senators know, feinstein, 11 and can well to ensure that an electronic trading facilities offering contracts that perform significant price discovery function are properly regulated in transparent way. a earlier this week the cftc used the authority natural gas contracts to increase oversight. with an that's an example of how was written with bipartisan agreements yield of real results. derivatives legislation should have been handled this way. should have come out of the

agriculture committee as bipartisan. my staff and chairman lincoln staff spent five months crafting bipartisan derivatives bill that should have been reported from the committee with support from both sides. unfortunately things fell apart just as we were about to circulate agreed upon discussion draft. this discussion draft that would have required clearing of swaps by swaps dealers and others to contribute to systemic risk. it would have provided the sec and cftc with authority to establish capital and margin requirements. would have allowed the cftc to impose an aggregate position limits and most of for the north would have provided a much-needed transparency of that's been absent from the swaps market. this would have represented 180-degree shift from current law that was in place in 2008. noaa transparency mr. president is the key here. home and there are agreed upon

discussion draft 100 percent of all trades and the swaps and derivatives market would have been out in the open and available to regulators to review and real time. unfortunately this language is not part of the a bill with and we're faced with derivatives for product crafted without input from republicans. derivatives product there reflects agreement between two democratic committee chairman and the administration. republicans are not even invited into the room to provide input. the product they developed will have many unfortunate consequences for main street businesses with that have nothing to do with creating this financial meltdown. i fear of unintended consequences resulting from applying complicated regulations too broadly and will subject american businesses to more risk and not less. for example, this legislation

would force the foreign credit system institutions to run their interest-rate swaps the clearing house which will result in additional costs in the form of higher interest rates to their customers without doing anything to lessen systemic risk. let me be clear as to this will ultimately affect. our farmers and ranchers, our electrical cooperatives and ethanol facilities to seek financing from these institutions and. institutions like code pink will be forced to clear their swaps and execute on trading facility which will impose significant new cost and results in higher interest rates for their customer who or worse discourage them from managing their risk which will again result in higher cost for there are worse and why? because this legislation broadly applies regulation treating all financial and tuitions exactly the same path.

goldman sachs are not the same and should not be regulated in the same manner. they should have the option to clear this hobson not mandated to do so. the this legislation will also prevent john deere credit from hedging its interest-rate risk except through a clearing house. again this will result in less attractive credit arrangements for farmers who need financing to buy tractors and combines. the same can be said for consumers who like favorable financing arrangements with ford motor credit to buy cars. they will not be allowed the best deal because ford motor credit is now going to be forced to take on additional cost when hedging their interest rates. can anyone tell me why we're treating john deere and ford motor credit's work exactly the same as cul-de-sacs? also entities like coke industries were hedging their risk and also engaged in

developing products for their customers hedging needs should not in and rene be captured in a new regulatory category designed to apply to big financial dealers. but that's exactly what this legislation does. coke and goldman sachs swap businesses will essentially be regulated in the same line. treating these entities like dealers may force them to stop offering these products to their customers. in which case the customers will have no other options but to see products from the large dealers like komen saks and other wall street bankers. today have heard the stock price of goldman sachs is up and this explains it. they will get increased opportunities to make more money with this and why do you want to essentially lessen competition and drive the swabs businesses to those that are the most systemically risky?

were even worse drive them off shore where we cannot regulate them? banks like goldman sachs may even be forced out of the swaps business if this legislation becomes law which begs the question -- who will then be left to offer these risk-management tools to our constituents businesses? businesses rely on swaps as a legitimate option to help them alleviator risk inherent to their business. but if no one is left to sell them this protection they will be forced to hold the risk on their books. and why on earth from congress advance legislation that would actually prevent the businesses and need to our states from properly managing the risks? especially in these difficult times. the american public wants to know why we cannot target these new regulations so that wall street is regulated appropriately without punishing the businesses that they rely on every day with and i myself

would like to know the same thing. unfortunately i think i already know the answer. it has absolutely nothing to do with regulating wall street. when the obama administration realized the committee on agriculture was on the verge of producing derivatives regulation package that could have appealed to both republicans and democrats is scramble to kill the deal. to the extent that any aspect of the financial regulatory reform package has republican support so they can no longer play politics with this issue. if we produce a bill that has support of several republicans then taken on for primus for holding up this process which would cause the administration to lose the message they're pushing and hopes voters will forget about health care and their message is simple -- they want to be able to tell the public that republicans are opposed to regulating wall street. well, that is disingenuous at best and totally false at worst.

republicans are just as anxious as democrats to address what went wrong on wall street and frankly it's long overdue. why is the administration waited almost 18 months to push financial regulatory reform? where they tried to cut republicans have the process? is said that they want an issue that will drag on into the election season, not a solution that will truly protect customers on main street? i wish we were here today debating tremendous product that have input from senators on both sides of the aisle and perhaps a little less input from the administration. the american people expect the administration to implement the laws that congress passes but they elected us with to write the laws. we could have done a better job had allowed to work in a more bipartisan way. unfortunately i have to encourage my colleagues to oppose derivatives portion of this bill because i think it will have undesirable

consequences for mainstream businesses and consumers who are already struggling in this weekend economy. we will have amendments to correct the deficiencies in this bill and i hope we will receive bipartisan support for those amendments because they truly will reflect common-sense solutions to the conflicts -- complex service issue and let me close by saying that i noam web senator dodd, senator lincoln, a senator shelby all want at the end of the day to develop a bipartisan bill and i hope that we can still do that. i see my friend senator warner is on the floor. he and i have had some conversations about trying to meld some of the ideas together and he's for closely with my dear friend is senator corker from this side of the aisle. now that we have this bill to the lord i hope that we can get by if the rhetoric that we can

all say our peace and roper sleeves and do what the american people want to see as do which is work together for their best interests. they're the ones were going to suffer from one comes out of here or their the ones who will benefit from what comes out of the senate. center -- senator dodd is a dear friend and we've had many conversations about this bill. i know what is in his heart and i know he wants to get this done and the right way. likewise with my dear friend senator lincoln so as we move ahead now i'm very hopeful myth that we can settle down to the real business the seventh is famous for and that's having real hard-core debate because these are tough and there's not been in more complex issue that we had to deal with in my now going on eight years in this body. but the mines here are very capable of resolving these issues and we can do so with

good ideas from both sides of the aisle and i'm hopeful at the end of the day that we will come out with a product the american people can look back and say, wow, that's the way the senate is supposed to work and the people that we sent there to do the people's business have, in fact, put together a good product that's going to benefit america and benefit american business and most importantly will benefit americans. with that mr. president i would yield back. >> we are joined with bill swindell of congressdaily another is in agreement between democrats to republicans on the bill what are we going to see happen? >> we should see some weeks of debate on this. this is a very wide-ranging bill that encompasses a lot of different things from ending the whole to big to fill provision that we saw carried out in 2008 when the government had to take over companies such as aig as

well as fannie mae and freddie mac and it deals with that and also consolidate some bank regulators. the bill also creates new consumer financial protection agency and also one provides pretty big oversight over derivatives market where aig lost billions in lightly regulated. >> a number of post for looking for all night session last night, would finally allow them to drop objections beginning work on the bill? >> some senate republicans are getting hammered a lot by democrats important with which the effectiveness. you are holding up this bill and kind to wall street and we saw that with a hearing on goldman sachs with the subcommittee and it became aware of lot of the moderates decided basically weakening the positions and

leadership to cut a deal