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at the very least the importance given to any asset size threshold needs to be periodically reconsidered in the scope of an economic indicator like g.d.p. wherever the line is drawn, it should reflect the ma crow economic factors of that -- macroeconomic factors that the bank is nes t'd in. firms will avoid growth, meaning cutting back lending as they approach any fixed threshold. i see this as a market distortion that reflects risks of increasing concentration rather than freudent risk management. i see this concern with any fixed threshold for being deemed acy ofy. however i think a nuanced way to process that gives difference to the expertise of regulatory agencies is appropriate. drawing lines to determine which firms warrant additional scrutiny will always be a difficult process. to the extent that we consider that the bill we consider today looks to other factors that a
strong financial stability oversight council with adequate resources and leadership should consider, i believe this is a good stamplet do i think there are improvements to be made in the designation threshold. i think this bill has two core problems that prevent my support. first, legislation to chaping the threshold should give sufficient specific direction that it would not move with changes to the political leadership of the fsoc. the concentration of an effective veto power in the hands of a single politically -- political appointee basically aggravates that concern tremendously. and second, although thorough analysis of the institutions presently categorized as civvies but not g-sibs -- ranking member, 30 seconds? ms. waters: 30 seconds. the speaker pro tempore: the gentleman is recognized. mr. foster: secondly, thorough analysis of the institutions presently categorized as sifis but not g-sibs requires more
than a year. the bill today writely looks to characteristics that are important in assessing systemic risk, but it does not provide predictibility or adequate transition period. the most recent financial crisis saw the failure of institutions of a variety of sizes, but, for example, the savings and loan crisis was simultaneous failure of many smaller firms. i support an approach that looks at many different factors and gives discretion to a strong well resourced fsoc to designate firms based on an objective characteristic of the firm so we can prevent another crisis. however, i urge my colleagues to vote no on h.r. 6392 because -- the speaker pro tempore: the gentleman's time has expired. mr. foster: i yield back the balance of my time. the speaker pro tempore: the gentlelady from california reserves. the gentleman from missouri is recognized. mr. luetkemeyer: could i inquire as to the amount of time remaining on our side? both sides? the speaker pro tempore: the gentleman from missouri has 15 minutes remaining. the gentlelady from california
has 10 3/4 minutes. mr. luetkemeyer: thank you very much. with that, mr. speaker, i'd like to recognize the gentleman from michigan, mr. huizenga, who is the monetary policy chair. obviously one of the greater, deeper thinkers in our committee from the standpoint of being able to handle that committee. and i yield to him two minutes. the speaker pro tempore: the gentleman is recognized for two minutes. mr. huizenga: i appreciate my fellow subcommittee chairman who has written a great piece of legislation here. we all have been talking about dodd-frank creating this financial stability oversight council, or fsoc, which was charged with monitoring systemic risk in the u.s. financial sector and coordinating regulatory responses by its member agencies. a good goal and idea gone bad, unfortunately. fsoc designates these banking companies with over $50 billion in assets. they are automatically considered systemically important financial institutions. the act subjects those institutions to enhanced
regulatory standards. here's the issue, mr. speaker, this is not about wall street banks, this is really affecting and hitting main street banks. . the sifi designation is an arbitrary and it suggests these companies with those assets which, don't get me wrong, $50 billion is a lot of money, folks. however, if you look at the totality of our financial institutions, it's actually quite small. it suddenly says, they are globally now systemically important that if this particular bank or company went out of business, we could take down the whole economy. it's just ludicrous. the propro-sess fsoc uses to designate these institutions is flawed in its current design and lacks the transparency and accountability that the american taxpayers deserve and, frankly, expect. in fact, the former financial services committee chairman, barney frank, under which dodd-frank is named, even agreed that the $50 billion sifi
threshold that he wrote into law and that the senate wrote into law was, quote, arbitrary. maybe $75 billion was too big and 25ds billion was too small, so they settled on $50 billion. there's no reason that number was picked. i couldn't agree more. is a bipartisan bill that passed out of our committee 39-16. with eight democrats joining the majority. and it would require, instead, that fsoc use an indicator-based measurement that has five different operational indicators. >> i yield another 30 seconds. the speaker pro tempore: the gentleman is recognized. mr. huizenga: thank you, mr. speaker. those five operational indicators, size, interconnectedness, complexity, cross-jurisdictional activity, and available substitutes, you know, therefore what is happening is we're seeing fewer products and services available
to bank customers because these banks are having to pour more additional resources that could go towards servicing those customers into a regulation that isn't doing anything to protect our economy. and that ultimately needs to be our goal. our goal here needs to be that we restore transparency by allowing regulators to review all of the circumstances surrounding that, and not have a washington, d.c.,-driven one-size-fits-all approach. and urge my colleagues to support this important bill. i yield. the speaker pro tempore: the gentleman's time has expired. the gentleman from missouri reserves. the gentlelady from california is recognized. ms. waters: thank you very much, mr. chairman. it was just sad that this has affected main street, it has not. all that passion you see on the other side is about the big banks, not about community banks. i will yield to the gentleman from maryland, a member of the energy and commerce committee, and a strong advocate for the protection of wall street
reform, mr. sarbanes. the speaker pro tempore: the gentleman is recognized. mr. sarbanes: thank you, mr. speaker. the speaker pro tempore: how much time is yielded? ms. waters: three minutes to the gentleman. the speaker pro tempore: the gentleman is recognized for three minutes. mr. sarbanes: thank you, mr. speaker. i thank the gentlewoman for yielding. i rise today to pose -- oppose legislation but i also want to speak to the millions of americans of all political stripes who want washington to change. who want to reclaim their voice and their democracy and who long , actually, for the interests of main street to be ahead of the interests of wall -- to be put ahead of the interests of wall street. unfortunately washington hasn't heard you, america. the system is still rigged. and the swamp is only getting deeper. special interest lobbyists are sharpening their naives in advance of the new congress -- knives in advance of the new congress and president-elect trump's administration is getting ready to carve up the tax code for their benefit and eliminate the oversight of wall street. bank stocks are surging now with wall street giddy at the prospect of tossing out critical rules and regulations designed to prevent another financial
collapse and taxpayer bailout. as one wall street age list put it immediately after the -- analyst put it immediately after the election, quote, everything is in play. maybe we should just use mr. hensarling's words, you ain't seen nothing yet. if you need further proof that special interests and the wall street elite will be empowered in the new congress and new administration, look no further than president-elect trump's nomination for the treasury department, steve mnuchin. a billionaire hedge fund manager, former goldman sachs executive, and bank c.e.o.. president-elect trump, a supposed champion of the working class, now seeks to appoint a financier like trump who specialy profited on the financial ruin of hardworking americans. what does this have to do with the bill we have before us, you may ask. well, a lot. today before the new president is even seated and steve mnuchin is even confirmed, h.r. 6392 will dramatically upend sensible oversight of some of the
nation's largest banks. many of whom were directly imple indicated in the financial -- implicated in the financial collapse of 2008. taxpayers lose under this legislation. but guess who stands to benefit from it? steve mnuchin. he serves op the board of the bank c.i.t., receiving a salary of $4.5 billion and c.i.t. is one of only 27 banks in the country that will benefit from this terrible legislation. whose more, under this legislation, mnuchin, if confirmed, will be in charge of overseaing the -- overseeing the replacement designation process for c.i.t. and the other 26 large regional banks rewarded think about legislation. mr. speaker this legislation and the nomination of steve mnuchin is a direct rebuke of president-elect trump's promise to, quote, drain the swamp. the only thing cleaner about the swamp is that the alligators will be wearing suits and ties. millions of americans of all political stripes are hurting.
they want a more representative democracy, they want public policy designed for the public interest, not the special interests. they want a fair shake. let's show them we're still fighting for them. let's defeat this wall street giveaway. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentlelady from california reserves. the gentleman from missouri is recognized. mr. luetkemeyer: thank you, mr. speaker. with that we'd like to -- with that, we'd like to recognize the gentleman from wisconsin, mr. duffy, chairman of the oversight committee, one of our toughest guys on the committee, he's got one of the toughest committees to be able to go after some of the issues that we're working on. with that he's recognized for 2 1/2 minutes. the speaker pro tempore: the gentleman is recognized for 2 1/2 minutes. mr. duffy: thank you, mr. speaker. i want to thank you, chairman luetkemeyer, for all your hard work on what i think is an excellent bill. it's fascinating to sit in this chamber and listen to the debate and the fear mongering that takes place. before i get into that, let's take just a little trip down memory lane.
we had to look at the financial crisis and what the democrats chose to do. the idea that you can't let any good crisis go to waste, the financial crisis. so we go to our file cabinets, we open them up and every progressive liberal idea we take out and put them into dodd-frank. a 2,300-page bill. a bill that was written before the financial crisis inquiry commission even came out with their report on the cause of the crisis. so this is a very, very simple tweak. right now we have designations for systemically risky banks at a set asset threshold of $50 billion. let me tell what you, i have banks in wisconsin that are small, regional banks, not wall street banks. that are getting crushed by these new rules and regulations. so all we're saying is, my friends across the aisle, you love the regulators. you think the regulators are awesome. we're trying to empower the
regulators to look at the facts on the ground. to look at the interconnectedness and the complexity to determine risk. not just have a one-size-fits-all mentality. it's not one size fit all. we're more complex, banks are as different as people. let's look at the complexity at every bank and make sure they can operate within their communities in a way that fits the risk to the financial system. and this gets back to the american people. why does this matter? why is this not just about financing complex rules? because if banks can't lend or if they lend, you're driving up the cost of the lending, that has a real impact on the small businesses in my community. the families in my community that can't get a loan. or the loans they do get that costs are going through the roof because of all the new compliance costs. the bottom line is, why do we want to have increased regulatory burdens on banks that aren't risky? let's focus the regulatory focus
like a laser on the banks on wall street who do need the increased regulation, but not the ones that don't. one size doesn't fit all. let's work together, let's modify dodd-frank. this isn't holy text, this isn't holy scripture. it didn't come down from the heaven on high. it can be fixed. it's not perfect. again, we're going to say this all day, barney frank even thinks the threshold is too low. it can be fixed. i look forward to working with my good friend and ranking member. commonsense reform that looks, take a solid look at risk profiles and then decide what kind of regulatory regime is necessary for the risk that's presented by each of these banks. with, that mr. chairman, thank you for your work. i encourage everyone, i know on both sides of the aisle, to support this commonsense bill that supports small businesses and american families, to make america great again. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from missouri
reserves. the gentlelady from california is recognized. ms. waters: thank you very much. mr. chairman and members, the gentleman from wisconsin has the audacity to come to this floor and talk about, we're crushing these pitiful little banks with $50 billion or more. no, you're crushing the average person who gets up every morning, who goes to work, who's trying to take care of their families and get ripped off by these financial institutions. i yield to the gentlelady. the speaker pro tempore: how much time? ms. waters: from hawaii. a member of the foreign affairs committee, ms. gabbard. the speaker pro tempore: for how much time? ms. waters: three minutes. the speaker pro tempore: the gentlelady is recognized for three minutes. ms. gabbard: thank you, mr. speaker. i'm prizing -- rising today in strong opposition to h.r. 3692. it's a dangerous bill that puts the economic security of millions of americans at risk. let's not forget that just eight short years ago the lives of americans all across the country were shaken and devastated by the worst economic crisis since the great depression. the livelihoods of hardworking feamings were put at risk -- families were put at risk.
millions of americans lost their homes and saw their life savings wiped out. all because of risky banking practices and the overgrown quote-unquote too big to fail banks. at that time republicans and democrats railed against the traffic esty that these banks exacted on the american -- travesty that these banks exacted on american people. this bill threatens to unravel the protections that were put in place to revent a repeat of this economic crisis. it would gut the higher capital requirements on 27 banks that together hold over $4 trillion in assets. nearly 1/4 of all banking system assets in the united states. and waterdown the independent authority of the federal reserve to regulate large bank risk. 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, said that this is not about main street. well, let me talk about what this bill is trying to fix. the problem we're trying to solve here. dodd-frank, the legislation that my friends on the other side of the aisle are defending, has produced this. small business lending from
banks is at the lowest level it's been in 20 years. more than 75% of corporate treasurers in this country say that federal regulations are stifling access to financial services. as a result, new business formation in this country is at a 35-year low. this bill is about main street, because main street cannot access financial services because of dodd-frank. this bill is about fixing an arbitrary provision in the dodd-frank law that harms consumers and does absolutely nothing to stabilize markets. dodd-frank directs the financial stability oversight council to designate banks as systemically important financial institutions or sifis. they're subject to additional regulation and an implicit taxpayer bailout. that's right. their bill is what gives wall street a bailout.
what we're saying is, let's focus our attention on wall street, but let's give regional banks some regulatory relief so that they can serve their customers on main street. the primary test for systemic importance is this arbitrary threshold of $50 billion. above that line an institution is designated systemically important. or too big to fail. below that line, regardless of the institution's risky activities, it's exempt. this bill that we're supporting does away with this blunt threshold and direct it's fsoc and its constituent agencies to consider the institution's actual activities, to determine if it actually is risky, if it's not it deserves relief. so that it can serve its customers better. size is not the only issue, it's interconnectedness, it's risky activities, and many of these regional banks that serve my constituents in central and eastern kentucky, not wall street, central and eastern kentucky, farmers, small business owners, homeowners in
kentucky are being crushed and denied access to capital because of one-size-fits-all regulation from washington. unlike dodd-frank's arbitrary approach, this will better promote financial stability because it actually targets the enhanced regulation to where it belongs and not on wall street. . the bottom line is we're hearing from regional banks around the country that the eblingts spence of complying with these enhanced regulations and the sifi surcharge means less capital for employment in mortgages and automobile loans, small business loans. it means higher credit card rates. it means fewer customer rewards. tim pacts these institutions' ability to engage in if i lan throw at this pi and community development activities. treating these regional banks s complex wall street firms is illogical. these are traditional banks -- the speaker pro tempore: the entleman's time has expired.
the gentleman's time has expired. the gentlelady from california. the gentleman from missouri reserves. the gentlelady from california is recognized. ms. waters: i reserve the balance of my time. the speaker pro tempore: gentlelady reserves. the gentleman from missouri is recognized. mr. luetkemeyer: we recognize the gentleman from pennsylvania, mr. rothfus, one of our more thoughtful members on the committee. yield him two minutes. the speaker pro tempore: the gentleman is recognized for two minutes. mr. rothfus: thank you, mr. speaker. i rise today in strong support of h.r. 6392. this bill, the systemic risk designation improvement act offers a commonsense approach to the process of designating systemically important financial institutions. in doing so, it addresses a problem that republicans and democrats have complained about for some time. dodd-frank's $50 billion threshold for identifying sifis is a crude and arbitrary way to desigh which firms pose a risk to the stability of the financial system. it's important to remember that sifi designation isn't trivial. when the financial institution is labeled as a sifi, it faces supervision and costs without regard to the nature of the
bank or the bank's accordingly, sifi designation impacts a firm's lending ability and therefore the firm's customers in their -- and their customers' ability to thrive. if we care about protecting financial stability and having a healthy financial system, we have a responsibility to pursue a fairer, more transparent, and more accurate process. the approach set forth under h.r. 6392 represents a more rational process for evaluating financial institutions as opposed to the washington tradition of one-size-fits-all. under this bill the financial stability oversight council would be required to look at not only the size of a financial institution, but also it's interconnectedness, complexity, cross jurisdictional activity, and the availability of substitutes. keep in mind that banks designated as sifis today may still be designated as sifis under this new approach. this bill's reforms will inject the fsoc's sifi designation process with greater clarity and fairness and it will result
in more appropriately targeted regulatory efforts. i commend chairman luetkemeyer for his work on this important issue and proud to be a co-sponsor of this bill in its original form. i urge my colleagues to support this bill. i yield back. the speaker pro tempore: the gentleman from missouri reserves. the gentlelady from california is recognized. to the s: i yield gentleman from texas an additional minute. the speaker pro tempore: the gentleman from texas is recognized for one minute. >> thank you, madam speaker, and madam ranking member. mr. green: let's look at this question because $50 billion was selected for a reason anti-reason is this. if you don't have a threshold, we knew at the time as we know now that you won't get any banks designated because the banks are going to sue and they are going to tie you up in court. maybe some will not, but you're going to have a real fight on your hand getting them to be designated and it can take two to four years to get it done.
looking at the banks that are covered, only three of the banks covered are in the $50 billion range. the top 15 are over $100 billion, and the top bank is about half trillion dollars. again, only in washington, d.c., would this kind of monny, a half trillion for one bank, be considered small change. we cannot allow the banks to dominate the process. we put the process in the hands of the banks when the regulators have to take them on one at a time. finally, what's wrong with telling a bank you have to tell us how to eliminate you if you become a systemic risk? that's what dodd-frank does. this bill eliminates the ability of fsoc to determine and tell banks that they must give us living wills. the speaker pro tempore: the gentleman's time has expired. the gentlelady from california reserves. the gentleman from missouri is recognized. mr. luetkemeyer: thank you, madam speaker. with that we want to recognize
the gentleman from colorado, mr. tipton, one of our hardest working members on the committee, two minutes. the speaker pro tempore: the gentleman is recognized for two minutes. mr. tipton: thank you, madam speaker. i'd like to thank my colleague from missouri, representative luetkemeyer, for offering this important piece of legislation under consideration today. the bipartisan systemic risk designation improvement act replaces an arbitrary asset threshold with indicator-based approach that will better assist financial stability oversight council in determining the true systemic risk of a financial institution. it is a mistake for regulators to continue regulating a $50 billion bank in the same way they regulated a $1 trillion globally systemic important institution. in fact, this view is shared among regulators and legislators. comptroller curry, federal reserve board members, senator brown, and former chairman barney frank have made public comments agreeing that the $50 billion sifi threshold is not the best determination for imposing heightened prudential standards.
this bill introduces a better anna list driven approach requiring the council to consider metrics considered established by the committee on banking supervision when it identifies globally systemically banks. the designation improvement act will stop the current regulatory model of needlessly increasing compliance costs and forcing institutions to decrease financial services. by ensuring that the sifi designation process takes into account indicator factors, finance institutions not the cause of the financial crisis, will once again be able to fully serve their communities. not only will this legislation provide relief for stable financial institutions, but it will also allow regulators to focus their resources, working with institutions to pose an actual systemic risk to the financial system. it is important to note that this legislation does not strip the fsoc of designation powers. it is concerning that some groups oppose a bill that encourages council to use accepted measures of standards
to justify a sifi designation. systemic importance should be determined by appropriate criteria rather than by arbitrary lines. and have no justifiable purpose. to advocate for the status quo and against this legislation shows a fundamental misunderstanding of the financial system and systemic risk. i'm happy to lend my support to this bill and encourage my colleagues to support this commonsense measure. again thank gentleman from missouri for his leadership on this measure. the speaker pro tempore: the gentleman's time has expired. the gentleman from -- reserves. the gentlelady from california is recognized. ms. waters: i continue to reserve the balance of my time. the speaker pro tempore: the gentlelady reserves. gentleman from missouri is recognized. mr. luetkemeyer: madam speaker, could inquire how much time is left for both sides? the speaker pro tempore: 2 1/2 minutes for the gentleman. and the gentlewoman has five minutes. mr. luetkemeyer: with that want to recognize the lady from utah, mrs. love, one of our -- we have a good crop of young
folks in our committee. she's one of those bright stars for us. recognize her for one minute. the speaker pro tempore: the gentlelady is recognized for one minute. mrs. love: mr. speaker, we have before us a solution to regulation that causes real harm to important financial institutions. especially in my state. zions bank corporation which supports the financial needs of many families and businesses throughout utah and the western states. last year zions bank corporation c.e.o. and chairman spoke about increased compliance costs his institution has to face as a result of enhanced prudential standard requirements of the dodd-frank act. specifically, zions had to diverse resources to add nearly 500 additional full-time staff to areas such as compliance, internal audits, credit administration, and enterprise risk management. mr. simmons also testified at the house financial services financial institutions subcommittee that these
increased compliance costs are offset by reductions in other areas of the organization. any of them are consumer facing functions. zions bank had to remove resources away from lending to customers and consumer service because of these extra regulation. yet zions is one of the smallest sifis with a business model centered on very traditional banking activities. primarily commercial lending with particular focus to lending on smaller business. i support h.r. 6392 and allow banks like zions bank to get back to what they do best. the speaker pro tempore: the gentlelady's time has expired. the gentleman reserves. the gentlelady from california is recognized. ms. waters: i continue to reserve the balance of my time. the speaker pro tempore: the gentlelady reserves. the gentleman from missouri is recognized. mr. luetkemeyer: thank you, madam chair. with that we want to recognize the gentleman from arkansas, mr. hill, who brings a wealth of financial service background to the committee and certainly
want to help him with his expertise here. with that we yield him one minute. mr. hill: i thank the chairman. i thank the madam speaker. this bill today is not about dangerous agendas, greed, or signing bonuses, or wholesale exemptions of regulation for 27 big banks. not at all. this bill is about using commonsense and -- common sense and taking off the auto pilot that's in dodd-frank which designates our sifis on size alone. in fact, includes all the factors that should be considered for institutions that might present a systemic risk. this is a bipartisan bill that has support on both sides of the aisle. chairman -- former chairman frank's comments have been read into the record but how about governor tirrillo. they do not seem to be necessary for banks between $50 billion and $100 billion. tom curry, our comptroller of
the curncy, the better approach is to use an asset figure as a first screen and then give discretion to supervisors based on risks in the business plan and operations. and senator sherrod brown, certainly a supporter of dodd-frank, i do not agree that some banks over $50 billion should be regulated like wall street megabanks. i support this bill and i yield back. the speaker pro tempore: the gentleman's time has expired. the gentleman from missouri reserves. the gentlelady from california is recognized. thank you very much , madam chair lady. here we're in the lame duck session of congress and we are signaling to special interests all the give aways that are about to come with republicans in control of washington. and we do this just after the president-elect selected a man to head the treasury department whose bank has been accused of red lining and violating the
fair housing act. whose bank was responsible for about 40% of reverse mortgage foreclosures in 2009 to 2014. and whose bank was characterized by a new york judge as engaging in harsh, repugnant, shocking, and repulsive acts against debtors. donald trump ran a campaign on anti-wall street rhetoric. but appointing a former hedge fund manager, goldman sachs executive, and bank c.e.o. as treasury secretary, shows his true colors. mr. mnuchin is a wall street insider with ties to big banks that have a troubling past of putting profits aheffed consumers and taxpayers. foreclosure me at, of homes on 36,000 families. mr. mnuchin now sits on the
board of c.i.t., which bought his former bank. he took a reported $10.9 million payout when the merger was completed. c.i.t.'s regulatory filings indicate that the bank provides mr. mnuchin with annual compensation of $4.5 million for each of 2015, 2016, and 2017 which gives a base salary of $800,000. short-term incentives of $1.4 million, and long-term incentives of $2.3 million. that is 88 times the household income of the average american family. what's worse, c.i.t. is a megabank and instead of paying back taxpayers, it went bankrupt like many of mr. trump's failed businesses. so mnuchin is a man who got rich off the foreclosure crisis
and taxpayer bailouts again, not unlike mr. trump himself. and will now have oversight over significant swaths of our financial regulatory system. h.r. 6392 in particular is president-elect trump's and the congressional g.o.p.'s first effort to deregulate wall street since the election. this bill stands to benefit just 27 banks in the united states, and one of those banks is mr. mnuchin's bank, c.i.t. in fact c.i.t. just recently completed a merger with one west which made mr. mnuchin rich. that merger also pushed c.i.t. over the $50 billion threshold that would make the bank subject to dodd-frank rules rather than submit to more stringent regulations, c.i.t. is trying to grease the skids to get favorable treatment in
congress so that their megamerger won't come with any strings attached. specifically, this bill would eliminate c.i.t. being more stringent on dodd-frank rules related to capital, liquidity, risk management and living wills, stress testing and other crucial requirements that prevent bailouts. what's more, the legislation would take authority to regulate banks away from our independent regulators and hand that power over to this man that i'm telling you all about whose got -- who's got a history, which has foreclosed on a lot of innocent homeowners but maybe i think under the investigation now from h.u.d. and so, again, this legislation would take this authority away to regulate banks away from our independent regulators and hand
that power over to him. now be in the ld driver seat to determine which banks get regulated and how. that means it could give special favors to his bank while ignoring similarly situated banks, not to mention our financial stability. well, you know, my friends on the opposite side of the aisle, you know, will tell us, oh, that bailout that we had to do in order to keep this country from going into a depression, you forced taxpayers to have to make that bailout and to pay for it. well, here we are today with the president-elect who pays no taxes. so why would he be worried about whether or not we have bailout or not? i would say this is one of the worst bills that's going to come before us, but just like mr. hensarling said, we ain't
seen nothing yet. i yield back the baffle my time. the speaker pro tempore: the gentleman from missouri is recognized. mr. luetkemeyer: thank you, madam speaker. just to recap. dodd-frank was -- came into a bang as a result of the crisis. one of the solutions was to be able to find systemically important financial institutions before they brought the economy down. coming up the sifi definition was one way to do that the problem was the sifi designation was too large, being impacted in too many and wrongful ways and even dodd-frank's original author, barney frank, recognized that with his testimony this past week as well as in our committee. the metrics that we have in the bill are very simple. there are things used by financial stability board, office of financial research when they look at global sifis, c.i.t.-west merger that the ranking member is talking out, these are the metrics used. we're trying to take the burden
off the mid-sized reeng national banks that have fewer products and services provided to customers. with that, madam speaker, i yield back. the speaker pro tempore: the gentleman's time has expired. ll time has expired. for what purpose does the gentleman from ohio seek recognition? >> madam speaker, i rise today to offer an amendment that would ensure the integrity of systemic risk improvement snakes agent of 2016. the clerk: amendment number 1 printed in part b of house report 114-839 offered by mr. davidson of ohio. the speaker pro tempore: pursuant to house resolution 934, the gentleman from ohio, mr. davidson, and a member opposed, each will control five minutes. the chair recognizes the gentleman from ohio. mr. davidson: thank you, madam
speaker. i yield myself 2 1/2 minutes. today's bill spells out the to ria, fsoc must use determine institutions of systemic risk. my amendment will prevent the federal reserve and treasury from blindly implementing new regulations proposed by an international entity, whether coming from the basel commission or unelected bureaucrats on the financial stability board. when congress begins to apply international standards, we need to make certain executive agencies don't overreach by simply ratifying every decision made internationally. recently, treasury and the fed have been found to make determinations that mirror the standards issued by the financial stability board without sufficient review. simply rubber stamping them. they have gone along with the decisions made by international unelected bureaucrats and in the process harmed our regional and community banks and
americans' access to credit. similar concerns have been raised by u.s. insurance companies. that's why mr. luetkemeyer is also sponsoring legislation to make sure these one-size-fits-all regulations are not used to supersede our state-based insurance regulations here in the united states. h.r. 6392 will provide the necessary relief and transparency needed in these systemic risk designations. i am proud to offer this amendment to clarify that our federal agencies cannot use the loophole of international recommendations to expand their powers or subject our community and local banks to even more burdensome regulations. i reserve the balance of my time. the speaker pro tempore: the gentleman reserves. for what purpose does the gentlelady from california seek recognition? ms. waters: madam chair, i seek recognition to oppose this legislation. the speaker pro tempore: the gentlelady is recognized for five minutes. ms. waters: madam chairwoman, i
rise in opposition to this amendment. this bill outsources our domestic regulation by the federal reserve and hands it over to an international group of regulators known as the financial stability board, or the f.s.b., to determine which banks should be regulated by our regulators. it says this international body should decide which banks are regulated, not the united states congress. the u.s. is just one member nation among many represented on the f.s.b., and the republicans have often criticized this board of regulators for being shadowy and not sufficiently differential to american interests. currently the f.s.b. makes determinations on which global banks are systemically significant, not significant to the u.s., but to the entire global economy. this legislation imports those determinations and sets our domestic regulation on autopilot. if the international regulators
say we are important, then this bill would grandfather you into dodd-frank. if not, then you get the big giveaway of deregulation. this amendment rightfully says that the u.s. shouldn't be giving away our sovereignty over our economy to international regulators, but the amendment fails to have the courage of its convictions. it says nothing in this bill shall broadly apply international regulatory standards to the u.s. with an exception of the part of the bill that applies international regulatory standards to the u.s. in summary, democrats who oppose deregulation of big banks should oppose h.r. 6392, and republicans who oppose outsourcing our regulation to foreign bureaucrats should oppose h.r. 6392. this amendment does nothing to solve this fundamental issue in the bill, and this legislation is still deeply problematic
even if the amendment is accepted. i reserve the balance of my time. the speaker pro tempore: the gentlelady from california reserves. the gentleman from ohio is recognized. mr. davidson: mr. speaker, i yield the balance of my time to mr. luetkemeyer. the speaker pro tempore: the gentleman from missouri is recognized. mr. luetkemeyer: thank you, madam speaker. i want to thank the gentleman from ohio, mr. davidson, for his interest for his authoring this amendment. the amendment makes clear that h.r. 6392 should not be construed to have international standards be imposed on the u.s. a similar framework utilized by the committee and used by the federal reserve and treasury in order to ensure the largest u.s. banks have their sifi designations. it will be highly inappropriate for any international body to impose any standard on an entity. as we advocate today for risk-based supervision, we
avoid any sort of blanket approach that's seen out of regulatory bodies. foreign banks doing business in the u.s., for example, the $50 billion result in a huge number of banks being treated as sifis. despite the fact many of them have under $10 billion in assets. as we consider these designations, we need to avoid one-size-fits-all models and look at things like comparable home country standards before we move forward on enhanced standards. i hope we can address these issues in the next congress and work with international regulators, particularly those in the european union, to have the standoff on bank capital rules. we should inject common sense and financial regulation that will protect u.s. taxpayers and financial systems without constricting economic growth. again, i thank the gentleman for his amendment and i yield back the balance of my time. the speaker pro tempore: the gentleman yields back. the gentlelady from california is recognized. yield back the
balance of my time. the speaker pro tempore: the gentlelady yields back the balance of her time. pursuant to the rule, the previous question is in order on the bill and on the amendment offered by the gentleman from ohio, mr. davidson. the question is on the amendment by the gentleman from ohio, mr. davidson. those in favor say aye. those opposed, no. in the opinion of the chair, the ayes have it. he amendment is agreed to. the question is on engrossment and third reading of the bill. hose in favor say aye. those opposed, no. the ayes have it. third reading. the clerk: a bill to amend dodd-frank wall street reform and consumer protection act to specify when bank holding companies may be subject to certain enhanced supervision and for other purposes. for eaker pro tempore: what purpose does the
gentlewoman from california seek recognition? ms. waters: i have a motion to recommit at the desk. the speaker pro tempore: is gentlewoman opposed to the bill? ms. waters: i oppose in its current form. i ask unanimous consent to dispense with the reading. the speaker pro tempore: is there objection to dispensing with the reading? mr. luetkemeyer: i object. the speaker pro tempore: the clerk will read. the clerk: ms. waters of california moves to recommit the bill h.r. 6392 to the committee on financial services with instructions to report the same back to the house forthwith with the following amendment. page 4, line 17, strike quotation mark and following semicolon and insert the following -- four. certain companies with enforcement actions by operation of law. notwithstanding any other provision of this subsection, a bank holding company shall be deemed to have been the subject
of a final determination under paragraph 1 if the bank holding company as of the date of enactment of this subsection. a, has total consolidated assets equal to or greater than $50 billion and, b, has disclosed in a filing with the commission that a department or agency of the united states government has a pending lawsuit or enforcement action against the bank holding company related to the origination, securitization or sale of residential ortgage-backed securities. mr. luetkemeyer: i reserve a point of order. the speaker pro tempore: a point of order is reserved. pursuant to the rule, the gentlewoman from california is recognized for five minutes in support of her motion. the gentlelady is recognized. ms. waters: thank you very much. madam chairwoman and members, this is the final amendment to the bill which will not kill the bill or send it back to
committee. if adopted, the bill will immediately proceed to final passage as amended. madam speaker, ladies and gentlemen, make no mistake. this bill is the opening salvo in the trump plan to dismantle dodd-frank. the house republicans have been trying for six years ever since we passed wall street reform and on the eve of president-elect taking office, this is their big chance to deregulate 27 of the nation's largest banks. this bill would strip rules around capital, liquidity, stress testing and living wills, key components to guard against catastrophic bank failures. these are not community banks, no. and $4 e 50, 100, 200
billion banks, banks that engage in exotics like pick a payment, which you choose how much you want to pay and the loan principal goes up, not down, leading up to the financial crisis. this bill would strip fed chair janet yellen of the fed's independent authority and hand it over to trump's wall street treasury secretary, a man who foreclosed on 36,000 families when he ran this bank, a man who's been accused of redlining and fair lending discrimination, by civil rights and advocacy groups. a man that would be handed the authority to deregulate the bank on whose board he now serves if this bill became law, but those conflicts of interests are par for the course in this incoming administration. .
president elect donald trump has more conflicts of interest than any incoming president in the history of this contry. trump's son-in-law and close advisor, has hundreds of millions of dollars in loans outstanding from domestic and foreign banks and has obtained development financing through a controversial u.s. program that sells green cards. legal scholars believe trump's lease with the government over the old post office building, where his hotel in washington, d.c., stands will trigger a breach of contract and a conflict of interest the moment he is sworn in. and trump may even violate the constitution on the day he takes office with former president bush's ethics lawyers aying that former foreign -- former diplomats staying in his hotel would be an unlawful foreign gift.
mr. speaker, this amendment highlights yet another conflict of interest we're facing. president-elect trump is deeply in debt to deutsche bank. over the past two decades, deutsche bank has been a lender or a co-lender in at least $2.5 billion in loans to donald trump or his companies. here's a sampling of trump's indebtedness to deutschy, the usiness within trump's network currently owe the bank nearly $360 million in outstanding principal, including $125 million for his florida golf course, up to $69 million for his chicago high rise, and $170 million line of credit used to fund the development of his new hotel in washington, d.c. this legislation, h.r. 6392,
deregulates huge megabanks representing almost 30% of the assets currently subject to stricter rules under dodd-frank. in the bill it is possible that the u.s. operations of global megabanks, megabanks like deutsche bank, would also be deregulated and with donald trump's appointments interpreting the law, i suspect they will indeed deregulate these global megabanks. why is this important? well, it's important because deutsche bank has the potential $14 billion settlement with the department of justice pending related to toxic mortgages they packaged and sold leading up to the financial crisis. they sliced and diced the prime loans and duped not only homeowners but unsuspecting investors just like
president-elect trump, they saw the specter of a foreclosure crisis and financial collapse as a business opportunity not a human tradgedy. after trump's election, news headlines said that deutsche bank stood to get a windfall because the new sheriffs in town would go easy on them. the speaker pro tempore: the gentleman's time has expired. ms. waters: enough is enough. while the trump justice department may give deutsche bank a bank -- the speaker pro tempore: the gentlelady's time has expired. ms. waters: trump's conflict of interest grease the skids for power interests in washington. the speaker pro tempore: the gentlelady's time has expired. for what purpose does the gentleman from missouri seek recognition? mr. luetkemeyer: madam speaker, i withdraw my point of order. the speaker pro tempore: the reservation is withdrawn. mr. luetkemeyer: i claim the time in opposition. the speaker pro tempore: the gentleman is recognized. mr. luetkemeyer: thank you, madam speaker. just to highlight some comments here with regards to the
ranking member's last discussion on this point of order, we believe the motion to recommit has absolutely nothing to do with financial stability. title 1 of the bill deals with operational standards of bank holding companies. this bill that we're working with deals directly with how regulators deal with banks. pending lawsuit has nothing to do financial stability of this bank. this may belong somewhere else in the dodd-frank bill but not here. with regards to the underlying bill as well, madam speaker, to reiterate some of the points that have been discussed already, we have a situation where the fix for the crisis of 2008 was dodd-frank, as was spoken to eloquently by some of my colleagues, and some of the fixes, as any bill we put together around here, is never perfect. there is always problems with t always needs to be tweaked down the road. this particular issue we're
talking about today, systemically important designation of institutions, part of a solution to try to be able to identify banks by definition that would bring down the entire economy. this can never happen again. we have a big bank go down. it could be such a size and magnitude and connectedness it would bring down the entire economy. when unan untended consequence of -- an unintended consequence is it will roll downhill. and barney frank, the author of the bill, has made sade in our committee he testified to that fact this is an unintended consequence, it should be fixed. all it does is fix that problem that these unintended consequences of these rules and regulations would carry cost with them are rolling downhill to the midsize regional banks and rolling below that. below 50. you talk to $10 billion to $50 billion banks, all the things the higher banks are dealing with they are dealing with. these regulations -- that are
supposed to be for the big banks, whatever, are rolling all wait downhill to the small banks. they'll argue about the fact that $50 billion an arbitrary figure. something we need to keep. that's a big bank. sorry. madam speaker, i was a regulator in my former life. i was a banker in a former life. can i tell you that's a big bank but not somebody that will bring down the economy. unless they are interconnected, which the metrics in mudville say if they are interconnected they have all sorts of other risky actions that they are engaged in. $50 billion is not going to do t things you have to look at are size and these other cry tearas. they are not pulled out of the air. these are criteria that the federal stability board uses, the office of financial research use when is they look at g-sibs, global sifis. these are analysis tools that are there, have been for a long ty. why not give the examiners, the regulators, these tools? i can tell you as a regulator they already do this. a point was made it takes 12
months on the bill to come up with these designations. the regulators already do this. they have the information in hand. there's no reason that they can't do this in a 12-month period. i have been there. done that. it's easy to do. they have the information. what we're doing is take existing criteria and asking them to look at the risk and the business model of this particular entity to see if it is something big enough and connected enough to go down. $50 billion is not someplace where banks should be it's going to cause the entire economy to collapse. no way. commonsense -- common sense will tell you that. i think to close out here very quickly, i think that we have a situation where these regulations are costing money to the consumers, to the businesses that the banks lend to. one quick factoid is 75% of the banks before dodd-frank had free checking. now only 37. those are just. so facts as they roll downhill that show that these regulations are hitting having
a initiative effect on our -- having a negative effect on our economy. the banks we're talking about are not the interconnected global folks. these are large community banks that serve communities. mom and pop shops. we want to keep them in business. keep our communities growing. and with that, madam speaker, i yield back the balance of my time. the speaker pro tempore: the gentleman yields back. without objection, the previous question is ordered on the motion to recommit. the question sont motion. so many as are in favor say aye. those opposed, no. in the opinion of the chair, the ayes have it. ms. waters: i request the yeas and nays. the speaker pro tempore: the yeas and nays are requested. those favoring a vote by the yeas and nays will rise. a sufficient number having arisen, the yaint. -- yeas and nays are ordered. pursuant to clause 8 of rule 20, and the order of the house of today, further proceedings on
>> the houses taking up the defense authorization bill that spent in a house-senate conference since july. a defense reporter with the washington examiner. the bill authorizes $619 billion in programs and policies of the pentagon. what are some of the key issue is authorized by the bill? >> one of the biggest issues is it pay ways for the troops, the compromise bill that will be on the floor, as presence request for fiscal 2017 with 1.6%. it's a major reshuffle of how is acquisition shop organized. it splits it into two different positions, one more focused on the business and not taking risk, which was a big priority for senator john mccain the senate version of the bill. senatehouse and differing over how to fund the wars in afghanistan, military
spending in iraq. the headline under washington examiner p, $3.2 billion boost in the overall authorization. how do they resolve the differences on that issue on funding for iraq and afghanistan? >> it takes into account the subsequent request. taking into account the president's request, that gives them about $3.2 billion more than what the president asked for, which could be a contributing factor in the democrats not supporting the bill. issues hashe key been the acquisition process for the military.
how the military buys things. what did they decide on in this bill? >> there's a major reshuffling of how the acquisition department will be organized and focused on innovation. the conference report says negotiators really believe that acquisition and innovation is the culture of the two different aspects are just totally different. to separate that out will help get things actually out to the war fighter faster, hopefully with fewer cost overruns. >> this is an authorization bill, so it's a chance to play out policy priorities. what about the issues like the potential drafting of women and discrimination in hiring practices at the pentagon and in the military? >> those things are both left out of the final compromise bill. it does not require women to sign up for selective service. it does not include the russell amendment, but a capitol hill aide tells me that part of the
reason republicans are willing to leave the amendment out of the final bill is because now with donald trump's election, they see new avenues early next year to be able to come back at some of these religious liberty issues. >> the authorization of more spending on military projects and programs coming in a time when the house and senate are figuring out the continuing resolution, the overall federal spending. i want to ask about how they tie-in, with this tweet of years commenting about joe wilson and mike turner, asking for pentagon spending bill, not a cr. explain that to us. >> the funding level in the cr is different from what is going to be included in the adaa. they essentially wrote a letter to speaker paul ryan saying that because it was expected to pass so overwhelmingly, the vast majority of congress agrees on the funding level so why not
just agree on that level. secretary carter sent a letter to the hill saying the detrimental impact that would be had to the program and it could put them behind issues like procurement priorities. >> the white house had initially issued veto threats against the senate and house version. what are they saying about the final version? >> they've not spoken definitively on this yet. it is unclear if they will sign it, but the white house press secretary are set -- press secretary said the fact that there's an additional $3.2 billion is not matched in nondefense spending. >> the house will get their final passage on friday.
what is the timetable for action in the senate? >> they will take it up sometime next week and then they are all trying to get out of town. >> read more at washington examiner.com. she is also on twitter. thanks for your update. >> the u.s. house voted to remove some of the financial regulations in the dodd-frank law. the white house has threatened veto the measure which changes banking rules. houses back friday to debate and vote on a house-senate compromise on 2017 defense programs and policy. the report expands the size of the active-duty army, marine corps and air force. it reorganizes the undersecretary's office. live house coverage starts at 9:00 a.m. eastern, here on c-span. the house oversight committee will look at the safety record of public transportation in
washington dc. washington metropolitan area transit authority general manager and other transportation officials will testify. like also another :00 a.m. eastern. coming up next, president-elect inald trump holding a rally cincinnati ohio to thank supporters. after that, russian president vladimir putin giving a speech to his country from the kremlin. later, the future of the conservative movement. president-elect donald trump held a rally in cincinnati, ohio to talk to supporters as he begins a thank you tour in states that flipped from democratic to republican in the november election. other states are expected to be added to the tour in the coming days. mr. trump also talked about his pick to head the pentagon, retired marine corps general james mattis.
support, and your prayers, i'm that 50umbled to say days from today with my family at my side, i will take the oath of office to serve as vice president of the united states of america. and i'm here tonight to say for electing a president who will make america great again. so thank you to the people in ,hio, the people of kentucky and i'll bet there's a few hoosiers in the room.
thank you for doing your part to make donald trump the next president of the united states of america. he did it. .nd we have you to thank before i go on, let me just say from our families two years, our hearts go out to the victims and families of those who were injured in the horrific attack that took place earlier this week in columbus, ohio. the victims are in our prayers and we commend the swift and courageous action of law enforcement in that parallels moment. moment.at periolous
a president who will make the american economy great again. we will repeal obama care and replace it with american solutions. we will cut taxes, rollback regulation, have trade deals that put american workers first, and were going to get this economy moving for every american. and thanks to you, right next door in my home state of indiana , today in indianapolis, because of the bold leadership and vision of president-elect donald announcedompany that akin february that they are closing their doors and moving to mexico announced that now more than 1100 good paying jobs
will stay right here in america. [cheers and applause] and the president-elect made it happen. make no mistake about it, carrier chose to stay in indiana because america chose to make donald trump the next president of the united states. and thanks to you, thanks to you we are going to enforce the laws of this country for the citizens of this country, we are going to build a wall and in illegal immigration once and for all. and thanks to you, we are going
to have a president who will appoint justices to the supreme court of united states who will of hold our second amendment and all the god-given liberties enshrined in our constitution. so we are here to say thanks, but mostly i just want to say to you from my heart as a fellow american, thank you for giving america a new president. giving america a new president whose strength, whose vision, whose leadership againake america great faster than you could possibly imagine. so let me say to my friends from indiana,hio, kentucky,
mr. trump: thank you, everybody. i didn't know this. look at this place. i didn't know what came with this position, and i didn't know that they closed down the roads around the stadium for an hour and a half. we've got to work out a new deal with our secret service, but we love them, right? thank you. thank you everybody, for being so patient.
thank you. you are going to be happy, we are all going to be happy. i'm here today for one main reason, to say thank you to ohio. thank you. we won the state by almost 10 points, which they say is totally unheard of. i don't know if you know, but it's the beginning. they say you have to win ohio, you must when ohio. you heard it over and over and over. even andd off sort of then we were one out and two up. we didn't have too much help at the top levels, you know that. that turned out it didn't matter. but we had help with the people, and that's what really didn't
matter. you must whening ohio, you cannot win the presidency without ohio. so we started and we were about point,d then point by then we had a couple of troughs, but with ohio, it just kept getting better and better. the in result was incredible. i had so many friends, thank you. and the true sense, history called and the people of this great state answered, and you're going to be very happy. going to say right now, we are going to make america great again, you watch. you went out and pounded the pavement, organized your fellow
citizens and propelled to victory of grass grew movement, the likes of which the world has never seen before. this is what they say. today on one of the networks they said maybe andrew jackson. when was that? that was like 1838. than someone else that that was great, but it's nothing like what happened here. so it really has been fun, and more importantly, i heard my saying about what happened today in indiana, we're going to do that all over the country. thank you, carrier. today we made history, and now the real work begins. that is the second reason that i'm here today.
i'm going to discuss our action plan to make a greater -- to make america great again. although we did have a lot of fun hot -- fighting hillary, didn't we? [cheers and applause] and by the way, the people are continuing to pour in, so let them come in. a half hour, but i don't think we are going to do that. let's blame them for being late, right? , i was inaid indianapolis to announce that we are saving the jobs that the carrier plant from going to
mexico. 1100 jobs. to i'm asking all companies keep their jobs in america, and we will work to make america a better environment for workers and businesses and we will crack down on all foreign trade abuses that undermine your ability and your company's ability to compete. when thoseare over companies are going to leave. fixave so many problems to in our country, but i know that if we set aside our differences, and we do have differences, we are a very divided nation, but we are not going to be divided for long. i have always brought people together. i know you find that hard to believe, although this group probably doesn't find it hard to believe. ourwe are going to bring
country together. we're going to find common ground and we will get the job done properly. we will get it done properly. importantly, america will .tart winning again we are going to win again. enlistsucceed, we must the effort of all americans. for too long, washington has tried to put us in oxus. they separate us by age, by race, by income, by geography, by place of birth. we spend too much time focusing on what divides us. now is the time to embrace the one thing that truly unites us. you know what that is? america. it's america. americans. when americans unify,
nothing is beyond our reach. you are going to see. we are going to have a country that was never so great. you watch, so many different ways. you hear a lot of talk about how we are becoming a globalized relationships people value in this country are local. country.ity, state, they are local. we will compete in the world, we want to compete in the world, but we are going to compete in the world where it is a two-way road, not a one ray -- one-way road. the advantages are going to come back to our country, and they haven't for many, many years. answer, no global global currency, no certificate of global citizenship. we pledge allegiance to one
flag, and that flag is the american flag. [cheers and applause] bem now on, it's going to america first, ok? america first. we are going to put ourselves first. we see peace and harmony with the nations of the world, but that means recognizing the right of every country, including our own, to look after its citizens. we would put other countries first. we had people running our country that truly did not know
what the hell they were doing . [cheers and applause] mr. trump: we will defend the american worker what has happened right here. they forgot is the american worker who truly built our country. we will not forget one of the reasons we are so divided today because our government has failed to protect the interests of the american workers and their families making it too easy for us to be unified as a whole.
that they have forgotten how to appeal to combine the skills them the talents and we have unbelievable talents but that is all about to change. our goal is to strengthen the bond between citizens to restore the sense of membership for a shared national community. global is a wonderful. right now we want to focus on our national community. never anyone again will interests come before the american people. that is not going to happen again. [applause] mr. trump: over the last two weeks since the victory have spoken to many foreign leaders and i will tell you they have such respect for us. they all tell me how this was amazing. how they sat in their
magnificent rooms. these are the leaders, the prime ministers, presidents ministers, presidents, and how they sat watching in wonderment hearing how people came to vote that had not voted in 20 years or never voted before and they had trump shirts and make america great hats and they thought it was amazing. [applause] mr. trump: and honestly, one of them told me, i truly respect the united states again because of what happened. [cheering and applause] mr. trump: we will seek a truly inclusive society where we support each other and love each other and look out for each other and that means people coming into our country have to be people that have the potential to love us. not hate us.
[applause] mr. trump: we condemn bigotry and all forms we denounce all of the hatred and forcefully reject of language of exclusion separation we will come together. the future where every child is included in the american dream. we have our own american dream and a bewildering back in american dream. the problems that plague our inner cities and we do have those of rural communities, some of them are poor. we are going to help those people. they can be fixed.
we have spent as of this week according to the latest count, trillion in the middle east. the middle east today is far worse than it has ever been. [booing] mr. trump: you will see changes very quick. workforce and flat wages are not the new normal. we are talking about wages, where some of you in this audience, hard-working and -- hard-working incredible americans were making more money 20 years ago that today. today you were older and you are working harder and in many cases you have two jobs. some of that is because of obamacare and by the way we are repealing and replacing obamacare. [applause]
we can reverse the stagnation and usher in a period of true opportunity and growth, endless gridlock is not a way of life any longer. we don't have to accept that. government can be responsive then we can become proud again of how washington works. i have spoken to democrats and i said to them, look, we can't go on with this gridlock. it's gone on for so many years. they can't get together. we are going to get together and i believe they want to get together. you know why, because it's time and the people are angry. they are angry and they are going to get together. we are going to make joint decisions. and the nice part our victory was so great we have the house, we have the senate and we have the presidency. [cheering] mr. trump: but we want to get them on board also.
people are constantly telling me and telling you to reduce our expectations. those people are fools. they are fools but this campaign proves that the old rules no longer apply, that anything we want for our country is now possible, anything. [applause] mr. trump: now is not the time to downsize our dreams but to set our sights higher than ever before for our country. [applause] mr. trump: now is the time to push for real profound change that restores the full promise of america for all of its people and those people are great people. i got to know them, believe me,
over the last 18 months. what we have created is a movement and it's a beautiful thing. if you take a look here the roads are all gridlocked, all gridlocked, all locked down, all secured up and people pour in. it's an amazing thing. now is the time to unlock the potential of millions of americans left on the sidelines. their talents aren't used in just unused and their dreams unrealized and their aspirations totally forgotten. these are people of great talent. this is the moment. this is our chance. this is our window for action. this is the hour when the great deed can be done and our highest hopes can come true. we are going to do it, folks. we are going to do it. [applause] we are going to do it.
[chanting] mr. trump: thank you. i love you too. look at this guy. and i do love him. he is a rough looking cookie though, i will tell you. we love him. we have a lot of love, believe me. there's going to be a lot of love in our country. i am working to assemble the details and action plan for america. my plan begins with structural reform to create millions of new jobs and rapidly expand our economic growth. you have seen what's happening with taxes. you've seen what's happening with regulations which are totally out of control. right now we punish companies for doing business in america. they are actually profiting. that's why they are leaving and by the way i have to say we are going to reduce taxes for the
middle class. it's ridiculous but for our companies and we are going to reduce the regulations. if a company wants to still leave the state of ohio or pennsylvania or how about north carolina? how well did we do in north carolina? [applause] mr. trump: remember when they said, he cannot win north carolina. if we had just one ohio and iowa and we had just won
florida. breaking news, donald trump's won florida. they said whoa and we wanted ag. [applause] mr. trump: but then the people back there, the extremely dishonest press -- [booing] very dishonest people. how about, how about, i mean how dishonest. how about when a major anchor who hosted a debate started crying when she realized that we won? [applause] mr. trump: speaker ryan: mr. how aboutmr. trump: it? don't tell me, this is untrue. and do you know what she doesn't understand? things are going to be much better now. [applause] mr. trump: i mean think of it. we won in a landslide.
that was a landslide and we did not have the press. the press was brutal. you know what? [booing] hey, in the great state of ohio, we do not have the upper echelon of politician either, did we? but i will say this, i will say this. and it was very nice. your governor john kasich called me after the election and was very nice. [booing] mr. trump: he said congratulations, that was amazing. he couldn't believe how much we -- we won ohio and the election by. remember, you cannot get to 270 with the dishonest press. there is no road.
folks, how many times did we hear this? there is no path to 270. [applause] there is no path. [applause] mr. trump: there are is no path for donald trump. texas is in play, remember that one? now as a republican i'm supposed to -- as a republican i'm supposed to win georgia. as a republican i'm supposed to win the great state of utah. i love those states. remember when they said donald trump is going to lose, some guy had never heard of, who is that guy? he is going to lose to this guy but the people of utah were amazing and we drowned them.
-- and we trounced them. [applause] mr. trump: and by the way hillary came in second and that guy came in third. i'm still trying to figure out, i'm still trying to figure out, i wondered what the hell was he trying to prove? i guess he wanted us to lose the supreme court. that's the only thing he was going to get. they said this was two or three weeks before the election. they said georgia is in play. texas is in play. that means we are even and then we won in a landslide. what happened? [applause] mr. trump: for weeks, texas is in play and you turn on the television two minutes later,
donald trump has won texas. [applause] mr. trump: these are very, very dishonest people. [booing] mr. trump: should i go on with this just a little bit longer? [applause] how about, it's like 12:00 in the evening and pennsylvania, i am leading by a lot and we couldn't get off 98%. they didn't want to call it. we are leading by so much that it is impossible. they refuse to call and then at 3:00 i will never forget. we won wisconsin and we won
michigan and we won pennsylvania , right? and that person is doing the math and that person would say for months that there is no way that donald trump can break the blue wall, right? [applause] mr. trump: we didn't break it, we shattered that sucker. [applause] mr. trump: that poor wall is busted up. so i will never forget it though because it felt so good. more so because they kept saying there is no path. and i go out and see the people like this and i'd say how were we going to lose? but what happened, so they say we win wisconsin. donald trump, 38 years or so, donald trump has won michigan and they are looking at the map
wow, there is no way that hillary clinton can become president." [applause] it's amazing. it's really amazing. and one of the announcers, one of the announcers i will have to tell you from espn, now they cover football and boxing and everything, right? he won out and he said that have to tell you, that event last night meaning the election results, was better than any fight, any baseball game, any football game. [applause] mr. trump: he said that was the most exciting event i have ever seen and then you look at the
nfl. now it's just not recovering but their ratings were so far down and you know what the reason was? this business is tougher than the nfl. the people liked it. their ratings were down 20% to 21% and it was because of us. we have a lot of fun. the bottom line is we won. [applause] we won big. [applause] mr. trump: whether it's producing steel, building cars or curing disease, we want the next generation of innovation and production to happen right here in america and right here in ohio. [applause] mr. trump: first on taxes. we are going to massively lower taxes and make america the blood
-- the best place in the world to higher, to invest and create and expand. we are going to eliminate every single regulation that undermines the ability of our workers and our companies to compete with companies from foreign lands. we are going to do it. [applause] we have the greatest competitors on earth and by the way some of the greatest business people in the world. one of the networks said, he put on a billionaire. that's because this guy knows how to make money, folks. [applause] mr. trump: he knows how to make money. i'd like to put on a guy that has failed all his life but we don't want that, do we?
i have been honest. i said i'm going to be putting on the greatest killers you have ever seen. we need that. it's time. it's time. it's time. we have a great cabinet. wait until you see what we have next week. are we doing a good job with their cabinet and our people? [applause] mr. trump: and i don't want to tell you, i don't want to tell you this because i want to save the suspense for next week. so i will not tell you. i refuse to tell you and don't let it outside of this room. do you promise? raise your hand. promise. [applause] mr. trump: so i will not tell you that one of our great, great
generals, don't let it outside, right? and of course the press is very honest, they will never let this go. we have about seven stations live. we are going to appoint mad dog mattis as our secretary of defense. [cheering and applause] mr. trump: but we are not announcing it until monday so don't tell anybody. mad dog. he is great. i asked one of the generals, i love the generals. i won't use his name but he probably would come forward. i said to him, you are a good general. yes sir i am.
i said, so how do you compare to general mattis? how do you compare to mad dog? sir, he is better than i am. [laughter] mr. trump: i love it, they love him. we will be announcing him on monday of next week. keep it inside the room but that's what we have and he has -- and he is our best. they say he is the closest thing to general george patton that we have and it's about time, about time. [applause] mr. trump: i gave up a little secret. my people over there are
probably saying you weren't supposed to do that. on energy, we will pursue energy and cancel the job-killing restrictions from oil, natural gas and clean colin we are going to put the minors of ohio -- the miners of ohio back to work. [applause] mr. trump: on infrastructure, we will build new roads, tunnels, bridges, railways, bridges schools and hospitals including major projects in the inner cities. they're such potential in the inner city. we are not using our potential. remember when i would make the speeches and say what the hell have you got to lose? the african-american community was so great to me in this election. they were so great to me. [applause] i couldn't believe it. i started off at a low number and every week boom, boom, boom
and i got it up to a number that's higher than all of the republican candidates for years and it was great. the hispanic community, i did great with the hispanic community, higher than people that were supposed to have done well. and is this really a big surprise? we did great with women. can you believe that? [applause] mr. trump: a couple of polls in the early states said we don't believe it. he is doing well with women. every time i went out i saw this beautiful pink signs, women for
trump. we did great with women. we did great with everybody. we will deepen our harvest. we have harbors that ships can even go into. -- ships cannot even go into. people have two simple rules. [booing] mr. trump: they don't know that hillary lost a couple of weeks ago. they forgot. [applause] where do these people come from? oh well. they are taking her back home to mom. it's true, it's true.
mr. trump: we will have simple rules when it comes to this massive rebuilding effort. by american and higher american. we can do it ourselves. and that will be our new mantra. on trade, the history of the nation teaches us that the strength of the country and its manufacturing sector is vital to both its economic prosperity and national security. because we don't do that. our borders are weak, our trade is terrible. you are going to see a turn that is so big and it's going to happen so fast and we started today in indiana. believe me, that's just the beginning. that is only the beginning. [cheering and applause] mr. trump: our trade deficit now is nearly $800 billion a year. it's a chronic drag on growth, it destroys the wealth of our country and jobs, and jobs. ohio has lost one third of its manufacturing jobs since nafta
and you know the nice part? now i don't have to say signed by bill clinton and approved by hillary. who cares? all i can tell you is that nafta is a disaster. what difference does it make? we will fix nafta or we will terminate it and start all over. [applause] america has lost 70,000 factories, hard to believe. i always say that's a typo. 70,000 factories since china joined the world trade organization. think of it. in the year 2000, america had nearly 20 million manufacturing jobs in the rust belt. today we have only 12.3 million manufacturing jobs left in the rust belt.
we are going to bring them back. we are going to bring them back. [applause] we are going to bring them back. the rust belt has been hammered and one of the reasons i won, it's one of the reasons i won. ohio is an example. it's down from 1.2 million manufacturing jobs in the year 2000 to only 690,000 jobs today. it's not going to happen anymore, folks. or take michigan, they are down from 900,000 manufacturing jobs in the year 2000 to only 600,000 manufacturing jobs. i see these numbers and it's sad that what isn't sad because this is all about hope and it's real hope because we are going to turn it around so fast. [applause] mr. trump: and we don't want ford leaving and going to mexico to build small cars.
we don't want it. we are going to turn it all around. we are living through the greatest job theft in history of the world. i've been saying it for months. it used to be the cars were made in flint and you couldn't drink the water in mexico. today the cars are made in mexico and you can't drink the water in flint, michigan. you know that, right? what a difference. but we are turning that around. what a terrible thing that was. gross incompetence on so many levels. the era of economic surrender is over. we are going to fight for every last american jobs. it's time to remove the rust from the rust belt -- or in a new industrial revolution. we are going to do it. [applause]
on health care reform, we will repeal and replace obamacare. we have no choice. we have no choice. [applause] mr. trump: and we will finally fix health care for america's incredible veterans, we love our veterans. [applause] mr. trump: where are the veteran's? raise your hand. who is a veteran? we have a lot of veterans. our veterans have not been treated properly and i want to thank our veterans and i want to thank the military and think our police forces because the number of votes i got were staggering, staggering. [applause] mr. trump: for whatever reason people in uniform like trump. i don't know, i've never figured that out. these are great people. we are going to take care of our veterans and we are working right now on somebody to run the veterans administration who will
be terrific, believe me, terrific and i will be watching. i will be watching. and on childcare and asking -- i am asking congress to pass legislation to support the american family and make affordable childcare accessible to all. it is so important. our agenda will fight to increase pay and opportunities for women in the workforce. support women entrepreneurs. who is a woman entrepreneur here ? who are the women? a lot of them. i hate to tell you, men, generally speaking they are better than you are. [applause] mr. trump: if i said it the other way around, i would be in big trouble. we are going to make sure that no one is penalized for the decisions to have a family. right now they are penalized.
on crime, we have experienced the largest increase. we are going to support the incredible men and women of law enforcement. they are incredible people. [applause] my administration will marshall federal resources to bring this crime wave to an end. we believe all americans have the right to live in safe the -- in safety and peace. we will never back down and fighting to deliver that security to every community in our land and to our inner cities that have been forsaken. [applause] we take care of our inner cities and the people in our inner cities. on defense, we will begin a major national effort to rebuild
our badly depleted military. [applause] mr. trump: we have no choice. if you look at this world it's a tinderbox and we want a strong military and we don't want to have to use it. ideally we don't have to use it, although we will destroy isis. [applause] at the same time we will pursue a new foreign-policy and finally learn from the mistakes of the past. we will stop looking to topple regimes and overthrow governments, folks. remember, $6 trillion in the middle east. $6 trillion. our goal is stability, not chaos because we want to rebuild our
country. it's time. it's time. [applause] mr. trump: we will partner with any nation that is willing to join us in the efforts to defeat isis and radical islamic terrorism. [applause] mr. trump: in our dealings with other countries, we will seek shared interests wherever possible and pursue a new era of peace, understanding and goodwill. on immigration, we will restore the sovereignty of the united states. we will restore the sovereignty. [applause] we will finally end illegal immigration. [applause] mr. trump: we will construct a great wall at the border. [applause]
dismantle the criminal cartel and liberate our communities from the epidemic of gang violence and drugs pouring into our nation. [applause] we will ask congress to reform our visa and immigration programs to protect jobs and wages from american workers. i love american workers. i love these people. do you know what i call a -- what i call american workers? the forgotten men and women of our nation and those men and women came out to vote. nobody ever thought that was going to happen. they came out by the millions. these are great, great people. they keep our nature are secure from terrorism. we will suspend immigration from regions where it cannot be
safely processed. we have regions in the world, people are pouring in. i don't have to say who is letting them anymore. we don't need san bernardino. we don't need another orlando. we don't need another world trade center. we don't need paris. look at paris, you look at nice. look what's happening in germany. we don't need that folks. we have enough problems, believe me. your state has just experienced a violent atrocity at the great ohio state university. that is a great place. that further demonstrates the security threats and these are just threats that are stupidly created by our very politicians, refugee programs.
we offer our bots and prayers to -- we offer our thoughts and prayers to the victims and our hearts go out to the entire community of ohio state. what a great place. [applause] a great place. we are with you and we will stand with you every single step of the way. the job of the president is to keep america safe and that will always be my highest priority. [applause] mr. trump: we will do everything in our power to keep the scourge of terrorism out of our country. we are going to keep it out of our country. people are pouring in from regions of the middle east. we have no idea who they are, where they come from, what they are thinking and we are going to stop that dead cold.
[applause] mr. trump: just take a look at what just happened in your state. take a good look and really think about it. ethics reform will be a crucial part of our 100 day plan as well. we are going to drain the swamp of corruption in washington. [applause] [chanting] mr. trump: thank you. i will oppose a five-year ban on executive officials becoming lobbyists and a lifetime ban on officials becoming lobbyists for foreign government. [applause]
mr. trump: change is not going to be easy. i am going to be unified with these proposals as you fought for this great campaign of ours. we are going to need our government and this group to be more engaged and more vigilant than ever before, to help us accomplish that reform to overcome decades of stalemate and gridlock. we are going to get it done. now that you have put me in this position, even if you don't help me i'm going to get it done, believe me. don't worry about it. [applause] mr. trump: it's easier to help the but that's her right. i will get it done. importantly we are all going to have open arms and we are going to invite everyone from all political persuasions to join our movement to help us achieve ougo