Political Quotes

“I rise today to discuss the confirmation of Mary Jo White as Chair of the Securities and Exchange Commission. Ms. White has had an impressive career--from prosecuting terrorists and white-collar criminals as a U.S. attorney for the Southern District of New York to heading a large litigation department in private practice. There is little doubt that Ms. White has the Wall Street expertise necessary to navigate the complex issues before the SEC. I come to the floor today to discuss a critical problem I have asked Ms. White to prioritize as Chair of the SEC. Currently, when a bank issues a structured finance product, it needs to get the product rated by the credit rating agencies, and the bank pays them for the ratings. The banks have an interest in getting high ratings, and the credit rating agencies have an interest in getting repeat customers. Of course, this creates a fundamental conflict of interest. This conflict played a key role in the financial meltdown. It is a problem we sought to address in the Dodd-Frank financial reform legislation we passed in 2010. Yet it is a problem that remains. It is awaiting action by the SEC--more than 5 years after the financial crisis hit and nearly 3 years since Dodd-Frank was signed into law. Resolving the problem of the conflict of interest in the rating industry will be a vital test of the SEC under Ms. White's chairmanship. In a meeting we had together last month in my office, Ms.…”