if you take aig and citigroup and wachovia and washington mutual and freddie mac and fannie mae, theholders of those companies lost hundreds and hundreds of billions of dollars. citigroup did not go under, but when the stock holders lose 90% of their value, it really does not make much difference if you have $1000 invested and you end up with $100 or not. so there in my view, there has been no moral hazard created for stockholders by the fact that the government came in and rescued those institutions. the moral hazard exists i think with the top executives who walked away with hundreds of millions of dollars and really did not pay the price for their failure. we had bigger and bigger financial institutions that had all kinds of activities where their problems became other people's problems. and then we had improper incentives, we had people running the huge institutions whose upside was lots of money and lots of glory, and the downside was still a lot of money and no glory. thomas: one of the points my teacher makes, when you're in a world that is a flat and technically interconnecte

eight years ago the failure of large regional banks like countrywide, washington mutual, and wachovia, major subprime mortgage lenders leading up to the crisis, created shock waves throughout our financial system. and hurt the american people. this bill would scale back the federal reserve's ability to regulate these banks, placing greater risk and burden on the backs of the american people. i urge my colleagues to stand with the people and vote against this dangerous legislation. thank you, mr. speaker, i yield back the balance of my time. the speaker pro tempore: the gentlelady yields back the balance of her time. the gentlelady from california reserves. the gentleman from missouri is recognized. mr. luetkemeyer: thank you, mr. speaker. with that we would yield to the gentleman from kentucky, mr. barr, one of our bright shining stars on the financial services committee, three minutes. mr. barr: thank you, mr. chairman. i rise in strong support of h.r. 6392, the systemic risk designation improvement act and i applaud your excellent work on this bill. the ranking member, my friend, sa

eight years ago the failure of large regional banks like countrywide, washington mutual, and wachovia, major subprime mortgage lenders leading up to the crisis, created shock waves throughout our financial system. and hurt the american people. this bill would scale back the federal reserve's ability to regulate these banks, placing greater risk and burden on the backs of the american people. i urge my colleagues to stand with the people and vote against this dangerous legislation. thank you, mr. speaker, i yield back the balance of my time. the speaker pro tempore: the gentlelady yields back the balance of her time. the gentlelady from california reserves. the gentleman from missouri is recognized. mr. luetkemeyer: thank you, mr. speaker. with that we would yield to the gentleman from kentucky, mr. barr, one of our bright shining stars on the financial services committee, three minutes. mr. barr: thank you, mr. chairman. i rise in strong support of h.r. 6392, the systemic risk designation improvement act and i applaud your excellent work on this bill. the ranking member, my friend, sa

remember wachovia with their exotic pick a payment mortgage loans, remember in october of 2008 when they posted a $24 billion quarterly loss and the fdic had to facilitate a midnight acquisition by wells fargo. remember new century? or aameriquest or option one? this bill would enable more employeeups like these. h.r. -- blow justice-ups like these. h.r. -- blowups like thiels. h.r. 6392 would make sure banks are subblet to closer regulatory scrutiny and prevent the federal reserve board from regulating these banks. instead, it would hand over that responsibility to what is known as fsoc, the financial stability yore sight council, in order -- stability oversight council, in order to -- they say, regulate the banks. the fsoc would have to go through a process of designation which takes two to four years to complete, this would give them plenty of time to go back to their old ways that dodd-frank is trying to prevent. even if a potential treasury secretary, mnuchin, decided to regulate his former employer by the time he got around to it, the damage would likely already be done. it's also