Continuing Extension Act of 2010

Floor Speech

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Mr. WARNER. Let me just acknowledge that we may--the Senator from Tennessee and I may differ slightly on how large some of the things the Treasury and FDIC put in at the end--because clearly one of the things that I think the Senator from Tennessee--and we can very quickly get into the weeds, but the weeds are important on this--the so-called 13-3 authority of the Fed would no longer be used for specific institutions, but the ability to help supplement around a liquidity crisis so that we don't have firms move from a liquidity crisis into a solvency crisis was an important tool, but it was perhaps misused in the past in terms of targeted at specific firms rather than issue-wide.

There are certain other aspects that I believe can be corrected, but the overriding point that I think Senator Corker and I both want to make is I
think we put together, at least in title I and title II--and I think there has been good work done in other parts of this bill as well, but in title I and title II, systemic risk, too big to fail resolution--we have put the framework in place that while some on both ends of the political extremes may be attacking, the overwhelming response has been that this is a good framework. Like any piece of legislation, it needs some fine-tuning, but the fine-tuning ought to be preserving this framework, perhaps moving back from some of the pieces the FDIC and Treasury put in place. But we can get there, and this is too important to allow this piece of legislation to be drawn by the aisle that separates this body into Republican and Democratic camps. We need to put a piece of legislation and solution in place that sets the financial framework and predictability for the next century, and I think we have gone a long way toward doing that.

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