if we add this up, three large banks, freddie mac and fannie mae, chrysler. that's 1/3 swallowed over the management, control of thee federal government. you add to that the student loan program and you add to that the finannial services that are being regulated right now that are being negotiated inthe conference committee between the house and senate that would put the federal government too regulate every single credit transaction in america. i don't just mean one of the large bailed out investment banks is doing business with one of the other investment banks that the federal government regulates that. i don't just mean that when a small community bank is doing transactions with people who are coming in to borrow money for a mortgage that the federal government regulates that. i'll take it down to the question that was posed. would their transactions that are set up to pay for the braces on the tithe of their children be regulated by the federal government and the white house? answer, yes. under this bill that is coming at us under the language we are dda

or chrysler." i am sure they justified it that way. i am not sure who in detroit would voluntarily leave a paycheck, but i suppose that was part of the rationale. this is just another facet where i believe, unfortunately, crony capitalively could be ememployed. i reject this amount of discretion in ddaling with the creditors or the counter parties of the morgan stanleys or the goldman-sachses of the world. we know under any facet of crony capitalism, you economic future depends lesson how you perform your job at home and more on who you know in washington. what it means is that firms' profit depends lesson how they compete in the marketplace and more how they compete in the halls of congress. we are see the vanguard of that today, and the result is the highest unemployment rate in a general and an economy that is still stagnant when it comes to jobs. we do not need any invitation for crony capitalism. >> the gentleman's time is expired. all those in favor will say aye. opposed no. the no's have it. the clerk will call the role and the

and chrysler. and so we're doing that. and then we decide, hey, it would be great idea if we bail out the idea of college kids that wants to get loans. the government could take that over. and then the government is now in the process of collecting other things that it can own. of course, notably, 17% of the free side of the economy which used to be where you worked, doctor, in health care. so now the government's taken over 17% of the u.s. economy in the health care area. they're nibbling and just salivating about taking over the energy business. and so if you're an average guy in the street and you start connecting the dots, which many people may not, but when you start to think about it, the government's taken over everything. and so it's not an odd thing for some taking a look at the headlines and looking back at the last 18 months to say, holy smokes, what's going on here. mr. broun: if the gentleman will yield? mr. akin: i yield. mr. broun: we've nationalized our country since the obama administration took over from

that is certainly what it was in the case of chrysler and gm. i know somebody will say, technically, no a bankruptcy judge blessed it. i concede the point. but when the government shows up with a $60 billion of taxpayer money and all the sudden creditors decide, well, i guess i would rather have part of $60 billion, i feel fairly confident the taxpayer was not represented in that proceeding. what happens is all of a sudden we have new chrysler and new gm, and oh, by the way, the united auto worker pension fund it, and unsecured creditor, gets forty-three cents on the dollar and senior secured creditors got twenty-nine cents on the dollar. since everybody manage to get taxpayer money, i am sure they were all too happy to sign on the dotted line. yes, i suppose all chrysler and gm were put to death, but all the sudden we had a miraculous resurrection. i don't even see the word "new" on the side of the building. the only thing that changed is the taxpayer is $60 billion poorer. or maybe we have the case of aig, which is more akin to the film, "week

will they be applied to any financial or non-financial institutions such as aig, gm, chrysler, or anc? will the investors received dividends in cash? what is the exit strategy with respect to these institutions as well as the other tarp recipients? has tarp enshrined into our law of the concept of too big to fail? have established an implicit guarantee for the benefit of our largest financial and non- financial instiiutions? will the pending legislation ratify and codify the existing standdrds? we will treasury yet again allocate additional funds to goldman sachs, citigroup, bank of america, and a group of other significant firms if they notified treasury today that they were experiencing a severe liquidity and solvency crisis? p+how would the answer change if the date approached treasury and the new york fed after the financial legislation is enacted? would the ftse liquidate these institutions -- would these institutions be liquidated? is this not what we were told%- with respect to goldman, aig, citigroup, bank of america, among others, that simply certain institutions were too big

chrysler said neither problem has caused any crashes or injuries.one of the most prominent members of the white house press corps, journalist helen thomas, retired today in the wake of widely publicized comments she made about israel. in an impromptu video interview last month, she said israelis should "get the hell out of palestine" and that jews could "go home" to germany, poland, and the united states. her remarks were denounced by white house spokesman robert gibbs, who called them "offensive and reprehensible." the 89-year-old columnist is leaving her employer, the hearst news service, immediately. known as the dean of the white house press corps thomas has been sharply questioning successive presidents since john f. kennedy in the 1960s. those are some of the day's major stories. now, back to jeff. >> brown:and we turn to the arrests once again of americans linked to foreign terrorist groups. >> brown: they called themselves the youth, a band of al qaeda linked jihadists who waged a campaign of violence in somalia. at new york's kennedy airpor

will they be applied to any financial or non-financial institutions such as aig, gm, chrysler, or anc? will the investors received dividends in cash? what is the exit strategy with respect to these institutions as well as the other tarp recipients? has tarp enshrined into our law of the concept of too big to fail? have established an implicit guarantee for the benefit of our largest financial and non- financial instiiutions? will the pending legislation ratify and codify the existing standdrds? we will treasury yet again allocate additional funds to goldman sachs, citigroup, bank of america, and a group of other significant firms if they notified treasury today that they were experiencing a severe liquidity and solvency crisis? how would the answer change if the date approached treasury and the new york fed after the financial legislation is enacted? would the ftse liquidate these institutions -- would these institutions be liquidated? is this not what we were told with respect to goldman, aig, citigroup, bank of america, among others, that simply certain institutions were too big to

the congressional budgettaxpayel lose $34 billion of the tarp- fund investments in gm, chrysler, and gmac. thank you, mr. secretary, for joy in the. and look forward to our disk of -- discussion. >> thank you. damon silvers. >> i wish to express my appreciation to secretary geithner for his willinnness to appear before this panel and a regular basis. today, i think the treasury department and secretary geithner deserves consideeable credit for the overall performance of the assets the government has acquired through tarp. as my colleague, mr. waters, pointed out in a different tone, the cost of -- mr. mcwatters pointed out in a different tone, the cost of tarp continues to fall. while it is hard to know exactl% the full cost, the public should be aware that the real cost of tarp is not at this $0.700 billion, or even the three and a billion dollars that it was thought to be. it is falling pretty consistently. however, there remain three significant questions that have been with us since the inception of tarp. the first is, is tarp workkng to achieve economic goals, reviving credit ma

the list i've gone through, the banks, fannie, freddie, student loans, chrysler all of that a third of our private sector activity, obamacare, 17.5% of the private sector activity of the health care, swallowed up, taken over by the time this is implemented in 2014. so, now we're at 51% of the former private sector activity, now nationalized. taken over under the ownership, management, or control they have federal government. the gentleman earlier talked about hugo chavez. i saw the picture of the president glad handed a handshake with hugo chavez almost a year ago. i said when it comes to nationalizing companies, hugo chavez had taken over a cargill rice plant in venezuela. but when it comes to nationalizing companies, hugo chavez is a piker, he can't hold a candle to the president of the united states of america. today we've lost 51% of our private sector activity to the nationalization of this federal government and they have nationalized under obamacare, our skin and everything inside it, the most sovereign thing we have, now we can't manage it the way we managed it before. we can o

will they be applied to any financial or non-financial institutions such as aig, gm, chrysler, or anc? will the investors received dividends in cash? what is the exit strategy with respect to these institutions as well as the other tarp recipients? has tarp enshrined into our law of the concept of too big to fail? have established an implicit guarantee for the benefit of our largest financial and non- financial institutions? will the pendinn legislation ratify and codify the existing standards? we will treasury yet again allocate additional funds to goldman sachs, citigroup, bank of america, and a group of other significant firms if they notified treasury today that they were experiencing a severe liquidity and solvency crisis? how would the answer change if the date approached treasury and the new york fed after the financial legislation is enacted? would the ftse liquidate these institutions -- would these institutions be liquidated? is this not what we were told with respect to goldman, aig, citigroup, bank of america, among others, that simply certain institutions were too big to

. >> in the same way that would appll to chrysler and gm. >> on the underside of your question, we are now on a path to exit those companies much more quickly at a much lower estimate of losses than we anticipated. at gm, we are drink -- bringing down the risk dramatically. we will continue as aggressively as bbgan to get the government out of those investments -- as we can to get the government out of those investments. those are commitments that we inherited. we are trying to reduce them as quuckly as we can. and fdot low a risk as we can. >> -- and at as low a risk to the taxpayers as began. >> if one of these institutions came to your office and said, we are experiencing liquidity crisis, would you advance the money -- a them money? >> i do not ever has to as questions because that this kind of impossible. if financial reform is in place, then we have a very well- designed process. and instead of emergency measures than we have in place in the fall of 2008, we would -- i would assume we would make better choices. you're talking about the 12 weeks remaining in this program? >> yes.

well, what happened on chrysler and their so-called death panels? we know that washington decided to play favorites. certain creditors were benefited at the expense of others. unsecured creditors, particularly the u.a.w., united automobile workers, somehow they jet to the front of the line. secured creditors go to the back of the line. it's being used, it creates avenues for political favoritism in washington, d.c., it will again lead to washington picking winners and losers. we know how this ends. we know that a.i.g. was used to make counterparties whole. c.i.t. was designate today big to fail they got billions of dollars, they failed anyway, but it was resolved quickly. it is time to end the bailout the nation cannot afford to be on the road to bankruptcy. it is time to end the bailouts, mr. speaker. it is time to approve this motion to instruct. i yield back the balance of my time. the speaker pro tempore: the gentleman's time has expire. the gentleman from alabama reserves the balance of his time. the gentleman from massachusetts. mr. frank: i y

i know ii was unpopular, but it was the right thing to do, and both gm and chrysler are adding ships and operating at a profit, which nobody would have imagined just a year ago. the question w is, how do we keep this momentum going? how do we keep adding jobs, raising incomes, how do we keep growing not just our economy but growing are middle-class? in the short term, we have to keep creating the conditions for companies like k.eal to succeed, to keep growing and hiring. because of a bill i signed into law, businesses are now eligible for tax cuts for hiring unemployed workers. companies are able to write off more of their investments into equipment. as part of health reform, four million small businesses rently received a postcard in their mailbox telling them they will be eligible for health care tax cuts this year. those tax cuts can be worth tens of thousands of dollars to those companies. [applause] i have also urged congress to cut more taxes for small businesse so that they can get the incentives and credits that they need to create jobs and growth. i believe it is absolutely

chrysler led the way with a gain of 33%. ford sales were up 22%, and g.m. rose 17%. at the same time, ford announced it will stop making mercurys by the end of this year. the brand has been around for 72 years. in afghanistan today, a national conference a "peace jirga" opened and militants carried out a suicide attack nearby. none of the 16 delegates were hurt but at least two of the attackers were killed. hahmid karzai spoke with rockets and gurch in the background and told his audience, we have heard this kind of thing before and appealed directly to the militants. >> ( translated ): my, dear your own soil. do not hurt this country or destroy or kill yourself. whoever is killed in this country is the son ofy this country. it is, you are from this country if it is, me, i am all from this country. we are brothers. let's free ourselves s from killing each other and build this country. >> sreenivasan: taliban representatives were not invited to attend the conference. the prime minister of japan yukio hatoyama has stepped down. he was in office just eight months but hi

these are the same tools that were used to orchestrate the bailouts of citigroup, bank of america, chrysler, gm and rescue to the shareholders of bear stearns. there is also a matter of perpetuating taxpayer bail us. the house bill has a bailout fund. the senate bill allows the fdic to borrow money to wind down the is a institutions. who ultimately pay for these mechanisms? the taxpayer. enough is enough. we can do better by creating an enhanced chapter of the bankruptcy code with a resolution of 40 to prevent future bailouts and create better transparency -- resolution of failed entities to prevent future bailouts and create better transparency. as we know in the conservatorship of fannie and freddie, we have $145 billion of taxpayer dollars already at stake. the time has come for sensitive reform of the gse's. we still have plenty of time. we have the will to tackle the enormous exposure to the taxpayers of fannie and freddie. i look forward to an open and transparent conference and the type of financial reform that will hold wall street accountable and permits main street to thrive. >> t

it was the right thing to do, both gm and chrysler -- [applause] both gm and chrysler are adding shifts and pulling in a profit. how do we keep adding jobs, raising incomes, growing our economy and our middle-class? in the short term, we have to create conditions for companies like k. neal to succeed. businesses are eligible for tax cuts for hiring unemployed workers. companies can write off more of their investments in new equipment. as part of health reform, 4 million small businesses received a letter telling them they would be eligible for health care tax cuts this year. and those tax cuts can be worth tens of thousands of dollars from those companies. [applause] i also urged congress to cut taxes for small businesses so that they can get the incentives and the credit that they need to create jobs and growth. i believe it is absolutely critical that we extend unemployment insurance for several months so that americans that have been laid off through no fault of their road get the support they need to provide for their families and they can maintain health insurance until they are re

that came before the bankruptcy court, did it alter the anticipated result of the hapt 11 for both chrysler angenel motors? did the evidence presentedo the bankruptcy court change the terms thawere offered to it by the white house? here's whaeasurer murdock said, no, it did not. now that's theuote. i' embellish a little bit and say, his answer was this, and this is how i interpret the answer, the white house dictated the terms of bankrupcy to the bankruptcy court. now when ever in tistory o america has t presint of he united states determined the terms of baruptcy and told th bankruptcy court this is how it wille? d hermore, to go on with treasur murdock's testony and being from indiana he was in the middle of this and speaking of the chrysr bankrucy and i should make it clear and i quote, you had the situation ere one party was negotiating, setting values, determining which creditors would be in, which ones would be out, what they would be given, what would be liquidated all to be t up foan auction sale for which there wasnly one bidder, the united states government. it s on both sides of

with that violin i had dreams of becoming another fitch chrysler.so i had all of those boyhood dreams. i wanted to be everything. i. koch are rabbit once -- i caught a rabbit once, and mamma broke his neck at the next morning and i took it down to what we call the hard road 3 miles away and gave it to mr. fred f. jennings and he gave me 15 cents for it. then i had dreams of becoming a great game hunter. [laughter] i had all of those dreams, but i never dreamed of becoming a united states senator. thank you for those questions. [applause] >> robert byrd served more than 50 years in the u.s. senate, a longer than anyone else in history. he was 92 years old. looking ahead to our live coverage, and about 20 minutes we will take you to the center for strategic and international studies from -- for remarks from steny core year. he will be joined by the national security provider. and confirmation hearings get under way for elena kagan. she will appear live at 12:30 eastern on c-span3 and c-span radio. we have a preview of the shearing from this morning's

and both gm and chrysler are adding shifts and operating at a profit. so the fight -- so despite temporary setbacks, uncertain world events, and the resulting ups and downs of the market, this economy is getting stronger by the day. now that does not mean that this recession is by any means over for those millions of americans who are still looking for a job or a way to pay the bills. not by a long shot. the devastation created by the deepest downturn since the great depression has hit people and communities across our country very hard. and it is not going to be a real recovery until people can feel it in their own lives. in the immediate future, this means doing whatever is necessary to keep the recovery going and to spur job growth. but in the long term, it means recognizing that for a lot of middle-class families -- for entire communities, in some cases -- a sense of economic security has been missing since long before the recession began. over the last decade, these families saw their income decline. this all the cost of things like health care and

we have already seen that abuse in the obama administration's handling of the chrysler bankruptcy last year. secured creditors, typically entitled to first priority payment under the absolute priority rule, ended up receiving less than the union allies of the administration who held junior creditor claims. the fact that the regulatory reform -- the speaker pro tempore: the gentleman's time has expired. mr. royce: ensures this kind of favoritism in the future. the speaker pro tempore: the gentleman from massachusetts. mr. frank: mr. speaker, i yield one minute to the majority leader. the speaker pro tempore: the gentleman is recognized. mr. hoyer: i thank the chairman for yielding and i congratulate the chairman for the extraordinary work he's done. i thank mr. bachus, too, who i think is one of the really responsible leaders in the minority in terms of issues of substance and where there are differences, there are honest differences. mr. speaker, i come to the floor and when i do i hear the portions of the debate, sometimes not all the debate. i want to make an observation, though, i l

have a buy american focus -- your scene truck and car sales started to go up by gm and ford and chrysleru are going to see these jobs continue to be maintained. host: i just want to let our viewers know that general mcchrystal has arrived at the white house just moments ago. bloomfield, new jersey. clark, independent line. you are next. caller: i think you're doing an excellent job in moderating. i do not see why so many people call in. they are really off the wall. you do a great job and you always do. mr. shultz, i watch your program. i can take about five minutes before i just cannot handle it anymore. i have to change the channel. you use words, you twist words and deceive people. i can give you an example. nafta -- you say the republicans killed that. well, nafta was actually -- al gore took full credit for that, sending jobs overseas. host: we will leave it there and getta response. guest: in my earlier answer, i said that was one thing that the clinton administration did that was the wrong thing to do. apparently the gentleman did not hhar that answer. host: next call, democratic

both gm and chrysler are adding ships but an operating at a profit. -- shifts and an operating profit. that does not mean this recession is by any means over for the millions of americans still looking for a job or a way to pay the bills. not by a long shot. the devastation created by the deepest downturn since the great depression has pitted -- has hit people across our country very hard. it is not going to be a real recovery until people can feel it in their lives. in the immediate future, this means doing whatever necessary to keep the recovery going and to spur job growth. in the long term, it means recognizing that for a lot of middle-class families, for entire communities in some cases, a sense of economic security has been missing since long before the recession began. over the last decade, these families saw their incomes decline. they saw the cost of things like health care and college tuition reach record highs. they lived through an economic expansion that generated more job growth than at any prior expansion since wwii. some people have called the last 10 years the lost de

general motors, chrysler, ford, i have seen workers laid off because of the problems at general motorsre now being called back to work. some companies are driving again. i do not know what we expect the president to do. stimulus money is being handed out. the republicans continue to criticize. host: thanks. we will leave it there. the "the wall street journal" has some criticisms of the president. maybe not a criticism but an observation. here is what one person rights. also this morning in the "new york times" this op-ed by charles. he rides the thrill is gone. back to the phones. illinois, an airline for republicans. caller: -- on our line for republicans. caller: i do not see any in illinois. 10.8% unemployment. the biggest stimulus could be every politician would take a 75% cut in pay. that would show they are there for the people instead of for their own pocket. that is about it. we are paying for the stimulus through taxes in the long run. host: when you go to the polls in november, is the stimulus spending. to play a part in deciding if you will vote for year current representat

and freddie mac and fannie mae, general motors and chrysler and watched the nationalization and everything in the form of obamacare and the government has now subsequently within that last i just identified swallowed up over 50% of the former private sector activity of our economy. and more to come. financial services reaching out to tap in and regulate every credit transaction in america and setting up boards, a whole new regulatory shield, another layer of regulation for our financial institutions, for our large banks, for our -- to a lesser degree, our independent banks and smaller banks, but not for freddie mac and fannie mae where this problem came from, where the taxpayers of the united states have now assumed $7.5 trillion contingent liability that if they go over, we have dumped billions into them, $50 billion perhaps for each, that if they should become insolvent, the american taxpayers have to keep dumping money in to freddie mac and fannie mae to prop them up. they used to be private. one time they were private. then they were quasigovernment and now they are completely under th

i've always degreed with any kind of regime that, for example, could force ford to have to bailout chryslern gm. i've been against that regime. so should the big banks be concerned about this regime? the answer's yes. should they be concerned with the application of fannie and freddie? i believe the answer is yes, but as i read the underlying law to put it in some kind of bill in context, number one, let's recall the secretary of treasury has for all purposes said the full faith and cret. although he won't use that phrase -- is behind fannie and freddie. it sounds like the taxpayers are stuck being on the hook. i think he just said we stand behind the gses. also to trigger this authority, i think, would take both a vote of systemic risk council and the treasury having to signff before the resolution authority would be triggered in the first place. so is the anxiety or fear well founded perhaps to what degree? i don't know. but again, i'm not here to punish banks, i'm here to protect taxpayers. that's my purpose. and i yield back to the gentleman of california. >> thank the gentleman. and be

these are the same tools that were used to orchestrate the bailouts of citigroup, bank of america, chrysler, gm and rescue to the shareholders of bear stearns. there is also a matter of perpetuating taxpayer bail us. the house bill has a bailout fund. the senate bill allows the fdic to borrow money to wind down the is a institutions. o ultimately pay for these mechanisms? the taxpayer. enough is enou we c do better by creating an enhanced chapter of the bankruptcy codwith a resolution of 40 to prevent future bailouts and create er transparency -- resolution of failed entities to prevt future bailouts and create better transparency. as we kw in the conservatorship of fannie and freddie, we hav $145 billion of taxpayer dollars already at stake. the time has come for sensitive reform of th gse's. we still have plenty of time. we have the will to tackle the enormous exposure tthe taxpayers of fannie and freddie. i look forward to an open and transparent conference and the type of financial reform that will hold wall stree i look forward to the kind -- >> the chairman of the agriculture committe

than the federal government decided to buy the largest car company in the united states, gm and chrysler. they subsequently declared bankruptcy at the united states still owns them. we also owned freddie and fannie. does or not someone's relatives. what they are, they are the largest secondary mortgage companies in the united states which means today uncle sam, the federal government today, effectively owns well over half of all the private mortgages in the united states. consider that. over half of all the private homes in this country that have mortgages on them which are the overwhelming majority, those mortgages are owned not by a private bank anymore but by the federal government and if america goes in and purchases a mortgage today on a property and it is a great time to buy a home, nine times out of 10 you will getting-- begetting our mortgage from the federal government. this is completely what we were doing 18 months ago. act about the government had taken over control of the private student loan industry, so you don't get private loans from private banks. now you have to go to

well, what happened on chrysler and their so-called death panels?we know that washington decided to play favorites. certain creditors were benefited at the expense of oths. unsecured creditors, particularly the.a., united automobile workers, somehow they jet to the front of the line. secured creditors go to the back of the line. it's being used, it creates avenues for political favoritism in washington, d.c., it will again lead to washington picking winners and losers. we know how this ends. we know that a.i.g. was used to make counterparties whole. c.i.t. was designate today big to fail they got billions of dlars, they failed anyway, but it was resolved quickly. it is time to end the bailout the nation cannot afford to be on the road to bankruptcy. it is time to end the bailouts, mr. speaker. it is time to approve this motion to instruct. i yield back the balance of my time. the speaker pro tempore: the gentleman's time has expire. the gentleman from alabama reserves the balance of his time. the gtleman from massachusetts. mr. frank: i yield myself

both gm and chrysler are adding ships and operating at a profit. -- adding shifts and operating at a profit. this economy is getting stronger by the day. that does not mean this recession is by any means over for the millions of americans who are still looking for a job or a way to pay the bills, not by a longshot. the devastation created by the deepest downturn since the great depression hasn8 hit people in communities across our country very hard. it is not going to be a real recovery until people can feel it in their own lives. in the immediate future this means doing whatever is necessary to keep the recovery going in to spur job growth. in the long-term it means recognizing that for a lot of middle-class families, for entire communities in some cases, a sense of economic security has been missing since long before the recession began. over the last decade these families saw their incomes decline. they saw the cost of things like health care and college tuition reached record highs. they've lived through a so- called economic expansion that generated slower job growth than at any

i know ii was unpopular, but it was the right thing to do, and both gm and chrysler are adding ships and operating at a profit, which nobody would have imagined just a year ago. the question now is, how do we keep this momentum going? how do we keep adding jobs, raising incomes, how do we keep growing not just our economy but growing are middle-class? in the short term, we have to keep creating the conditions for companies like k. neal to succeed, to keep growing and hiring. because of a bill i signed into law, businesses are now eligible for tax cuts for hiring unemployed workers. companies are able to write off more of their investments into equipment. as part of health reform, four million small businesses recently received a postcard in their mailbox telling them they will be eligible for health care tax cuts this year. those tax cuts can be worth tens of thousands of dollars to those companies. [applause] i have also urged congress to cut more taxes for small businesses so that they can get the incentives and credits that they need to create jobs and growth. i believe it is abso