we have the director of financial regulation at the cato institute. without objection, your written statements will be made part of the record. each of you will have five minutes. >> chairman, here. it was my, i believe there are only three minutes of democratic opening statements with the idea that the subcommittee chair on the democratic side would be called as well. that's what i was told by your staff. chair waters: thank you very much. that is the order. i will call on mr. sherman. please go ahead. make an opening statement. thank you. mr. sherman: thank you so much. back in the day the law school professor would create an exam where he would weave together a story that would he exemplify each of the issues in that area of the law. but never did the professor do it as good a job as the gamestop saga which identifies most of the issues facing our capital markets. could there be limits that require disclose sure? what do we do with market participants whether they be on reddit or on wall street who are shorting the stock or buying a stock for the p

are for more tonight let's bring in jeanne healy he's a vice president at the cato institute think tank in washington d.c. his research focuses on executive power and the role of the presidency she is going to have you back on the program trump's lawyers say that this trial is a nonstarter because it is unconstitutional is it. well know this isn't the 1st time the senate has tried something that's no longer in office you know there are trumps lawyers arguments seem to be the house and move too fast and. thereby tonight from due process but the senate moved too slow because they didn't get it with a week left in trump's term they were unable to run a full dress trial if only to move just right you know the fact is they don't want a trial they don't want to hearing of all this and the i think what the jurisdictional argument that they flashed up on is something that is just a politically convenient. rationalization for senate republicans who who would like to avoid itself well i mean it sounds like what we've got here is the president's lawyers are arguing more about process rather than s

art for more tonight let's bring in jeanne healy he's a vice president at the cato institute think tank in washington d.c. his research focuses on executive power and the role of the presidency she is going to have you back on the program trump's lawyers say that this trial is a nonstarter because it is unconstitutional is it well no this isn't the 1st time the senate has tried something that is no longer in office you know there are translators arguments seem to be the house too fast and. they're buying tonight from due process but the senate moved too slow because they didn't get it with a week left in trump's term they weren't able to run a full dress trial if only to move just right you know the fact is they don't want a trial they don't want to hearing of all this and i think what the jurisdictional argument that it's latched on is something that it's just a politically convenient. rationalization for senate republicans who who would like to avoid itself well i mean it sounds like what we've got here is the president's lawyers are arguing more about process rather than substance in

art for more tonight let's bring in jeanne healy he's a vice president at the cato institute think tank in washington d.c. his research focuses on executive power and the role of the presidency she is going to have you back on the program trump's lawyers say that this trial is a nonstarter because it is unconstitutional is it well no this isn't the 1st time the senate has tried something that's no longer in office you know there are translators arguments seem to be the house too fast and. thereby tonight from due process but the senate moved too slow because they didn't get it with a week left in trump's term they weren't able to run a full dress trial if only to move just right you know the fact is they don't want a trial they don't want to hearing of all this and did i think what the jurisdictional argument that they flashed on is something that's just a politically convenient. rationalization for senate republicans who would like to avoid it. well i mean it sounds like what we've got here is the president's lawyers are arguing more about process rather than substance in other words t

i left off with jennifer scott, director of the financial regulation studies at the cato institute.ithout objection, your written statements will be made part of the record andeach of you will have five minutes to summarize your testimony you should be able to see a timer on your screen that will indicate how much time you have left, and a time will go off at the end of your time i would ask you to be mindful of the timer and quickly wrap up your testimony if you hear the time before we begin with your oral testimonies, i would like to swear in the witnesses i will call each of your names individually to respond. would you please raise your hands? do you solemnly swear to affirm that the testimony you will give before this committee in the matters now under consideration will be the truth, the whole truth, and nothing but the truth so help you god. mr. tenev? >> i do. >> mr. griffin >> i do. >> mr. plotkin mr. plotkin? >> i was muted i apologize. i do >> thank you mr. huffman? >> i do. >> mr. gill? >> i do. >> ms. goff? >> i do. >> thank you very much let the record show that all of

but what do some of my fellow libertarians think basement joint amino vice president cato institute,dible] if that is not impeachable nothing is. so why should liberty minded individuals take this text customer cuter discuss vice president at the aforementioned cato institute author of indispensable remedy the broad scope to the constitution impeachment power, gene healy. >> hi things or having me on. why not censure white not center get a felony conviction and then censure, and then automatic you can't run for anything ever again? >> censures a constitutional remedy that made andrew jackson really mad at one time. wasn't exactly hard to do. it is never cost any other president a good night sleep. most people can't remember anyone who was censured. if so impeachment is the real constitutional censure but it's what leaves a mark. as a libertarian i always thought, i've always been for impeaching more presidents. it's just beyond my wildest dreams that twice in one term, twice invasive of the space of year is more than i would have expected. kennedy: or less. you say leaves the ultimat

are for more tonight let's bring in jeanne healy he's a vice president at the cato institute think tank in washington d.c. his research focuses on executive power and the role of the presidency she is going to have you back on the program trump's lawyers say that this trial is a nonstarter because it is unconstitutional is it well no this isn't the 1st time the senate has tried something that's no longer in office you know there are translators arguments seem to be the house and move too fast and . thereby tonight from due process but the senate moved too slow because they didn't get it with a week left in trump's term they weren't able to run a full dress trial if only to move just right you know the fact is they don't want a trial they don't want to hearing of all this and did i think what the jurisdictional argument that they flashed on is something that is just a politically convenient. rationalization for senate republicans who like to avoid itself well i mean it sounds like what we've got here is the president's lawyers are arguing more about process rather than substance in other

i'm general schulte, the director of regulation studies at the cato institution for monetary and financial institutions. thank you for the opportunity to take part in today's hearing. before addressing the gamestop phenomenon specifically, i would like to talk about the participation of retail or individual investors in our public equity markets. retail participation has ebbed and flowed over the years, but the recent upward trend accelerated sharply during the pandemic. most .2 zero commission trading, but several other factors also likely attracted retail investors. including fractional share trading, low account minimums, and easy app-based platforms. or time at home during the pandemic probably even played a role. retail participation in our equities market is important. the fact retail investors behave differently than institutional ones and differently from each other is particularly valuable in times of market stress. individual investors may have held stabilize the market in march of 2020. importantly, investing in the stock market also provides a path to wealth for individual inve

leadership conference, by the naacp legal defense fund, and also by libertarian groups like the cato institute and the institute for justice, americans for prosperity. there are hundreds of business leaders who have signed onto a letter. there are 1400 professional athletes and front-office people who have signed onto a letter. there are lawyers, judges come up performing artists -- judges, performing artists. there is a broad coalition on this. host: and you have started the campaign to end qualified immunity. talk about the coalition before we take calls, mr. cohen. >> the coalition is growing by leaps and bounds. last week there were 14 organizations. now there's 16. there's more that we are about to talk with, and that is just the major organizations. then as individuals, as jerry said, you've got a bunch of sports professionals from the nfl, you've got actors, actresses. people from all walks of life. how do you make the case that somebody should not be held accountable for their actions? it is absurd. we are aware right now that people's rights are continually violated by bad cops, and g

this is not like the heritage foundation or the cato institut or even a university that may b more downiddle. the cbo generally comes out wit left-wing studies. it was a surprise to see this. the put back they're going to get from democrats is or might be places in chicago and san francisco that can bear this kind of burden, as west virgini and the senator has joked, can they bear that burden. fixed cost of living a much lower, i kind of doubt it. >> biden spoke out about his tw hour phone call with china's president she. >> i told him no american president can be sustained as a president if he doesn't reflect the values of the united states. so the idea, i'm not going to speak out against what he's doing in hong kong, what he's doing in the western mountains of china, and taiwan, by making it forceful, i said, he gets it. >> so i guess biden admits that he knows that he's just paying lip service to biden's raising the issue of human rights. after make a nod toward human rights. >> she was excited to see donal trump and pompeo and a republican have to take the bac seat to joe biden and

exchange that happened shortly before i came on your show right now, jennifer schultz from the cato institute was asked if a financial transaction tax could have prevented the frenzy that we saw with gamestop, and she said absolutely not. she said a financial transaction tax would actually hurt a lot of investors that are trying to save for retirement, and she says it wouldn't have done anything to address the volatility that they saw there. and, liz, why that's relevant is because house democrats in the wake of this situation are saying it proves that there is a need for a financial transaction tax, but it's clear that some experts say that would have done nothing to help the situation. liz? liz: yeah. and it's interesting, you know, maxine waters, who's running this committee, actually said just as i was rushing in to get in front of the camera, she said, hold on, we never said that we're going to pile in on regulations. this is sort of a fact-finding mission. but in the meantime, hillary, you keep listening. interrupt us if something else happens here. but let's bring in two key individual

schulp from cato institute and i know that there was a greenwich associates had a study and others are out there do you concur that this has been good for consumers in the most part >> i think there are still ongoing studies but i do think that payment for order flow and the price improvements have largely been good for improvements for customers and i agree with mr. griffin that this has helped drive innovation in the industry i think disclosure can always be better and i think people should understand that their broker still needs to make money even if they're providing a zero commission trading service >> okay. all right. three minutes left i was going to start actually with this and ask each one of you why you thought you were here today but i'm going to dispense with that because it is going to take too much time and i'll provide the answer political theater for the most part that's what this hearing is today. we're on the business channels right now and on spoin -- we're on the business channels right now and on c-span i think you see a few of my colleagues playing to the cameras

and today with david of the cato institute makes a case on the other side larry, saying that by increasing the skilled immigration, the bill would allow u.s. companies to fend off the competitors around the world making sure that america continues to be home for innovation and entrepreneurship . but when you get back to the politics coming of the dynamics here. in washington, the biden administration said they are putting this forward and they want to start a conversation. but is still a long road for that conversation happened. larry: there may be some things in there. i'm not necessarily opposed to this and so forth if you can prove it. but i'm just saying that there is no coherent package. there's no coherent package with reforms. all of these countries have skills based merit policies to get into the united states. were not asking too much . what is your value. i am for illegal immigration. let me make that clear. if i get my pal steve miller. were talking about a million legal immigrants to add to the united states. legal immigrants have a long and illustrious history in this country.

no be another case so this parker case comes up, but a buy guy named bob levy who was with the cato institute but interestingly enough, the nra was opposed to this litigation. the nra were not nervous because they were not quite sure that they were five minutes on the court to support an individual rights reading of the second amendment. and had preferred to continue to -- at the legislative level where they were awfully effective. particular, when you had about -- throughout this 20th century, you had numerous examples of judicial hostility to the individual rights reading of the second amendment, warranted or not. and, leaves bet paid off. he had a good lawyer named -- who argue the case and what the court held was interesting. the first thing i noticed about it was reconceptualize is a right. it modernizes it, if you will. so no longer we're talking about militia, communal self-defense, we're talking about individual self-defense and the home. and whether court basically held was that in so far as the district of columbia, made it impossible for you to have a file available to you in your

financial transaction tax might be the answer but they heard from an expert witness today from the cato institute investors, many of them that are trying to benefit from the stock market to save for their retirement. neil? >> neil: all right. hillary, that was a little longer than a yes or no answer. [laughter] you did a great job covering this today and man o man, that was a lot to cover all day long on both networks covering that hillary vaughn, thank you very much. where is taylor's point, where is all of this going? south carolina republican congressman william is with us right now on the house financial services committee doing all of this questioning. congressman, good to have you. >> good afternoon, thanks for having me on. >> neil: no, thank you, sir. maxine waters, the chairman, it seems to be moving on the side of washington doing something. should it? >> well, i think it should do something. and that's reconsider the capital requirements for every day americans investment vehicle. and that's robinhood and ameritrade and it's these up and coming businesses are unable to have three plus

leadership conference, by the naacp legal defense fund, and also by libertarian groups like the cato institutehe institute for justice, americans for prosperity. there are hundreds of business leaders who have signed onto a letter. there are 1400 professional athletes and front-office people who have signed onto a letter. there are lawyers, judges come up performing artists -- judges, performing artists. there is a broad coalition on this. host: and you have started the campaign to end qualified immunity. talk about the coalition before we take calls, mr. cohen. >> the coalition is growing by leaps and bounds. last week there were 14 organizations. now there's 16. there's more that we are about to talk with, and that is just the major organizations. then as individuals, as jerry said, you've got a bunch of sports professionals from the nfl, you've got actors, actresses. people from all walks of life. how do you make the case that somebody should not be held accountable for their actions? it is absurd. we are aware right now that people's rights are continually violated by bad cops, and good co

reclaiming my time that -- american people not only -- >> even expert witness yesterday from cato institutee hillary vaughn from capitol hill, thank you. >> -- what do you make of all this you can't tax your way out. >> you can't,. >> frustrated. >> democrats trying to pretend this is a solution to the gamestop issue like he talking about it a very long time the data on financial transactions caps is pretty clear, countries that don't them often abandon them because they don't pan out when you tax the activity the activity leaves if america if congress wants to drive financial markets more out of this ken decimate that industry, go in a direction like this, because that is the proven result of it, it doesn't work, to enhance prosperity gets rid of avenues average americans can use to invest in the market issue. cheryl: really james i can't believe we are having this discussion, in the middle of a pandemic. that they brought this issue up. >> you were just talking to larry kudlow, he was saying what were they real after in a this hearing? what is the goal here? and the answer is it is a mone

i'm general schulte, the director of regulation studies at the cato institution for monetary and financial institutions. thank you for the opportunity to take part in today's hearing. before addressing the gamestop phenomenon specifically, i would like to talk about the participation of retail or individual investors in our public equity markets. retail participation has ebbed and flowed over the years, but the recent upward trend accelerated sharply during the pandemic. most .2 zero commission trading, but several other factors also likely attracted retail investors. including fractional share trading, low account minimums, and easy app-based platforms. or time at home during the pandemic probably even played a role. retail participation in our equities market is important. the fact retail investors behave differently than institutional ones and differently from each other is particularly valuable in times of market stress. individual investors may have held stabilize the market in march of 2020. importantly, investing in the stock market also provides a path to wealth for individual inve