Senate Proceeding 04-27-10 on Apr 27th, 2010 :: 1:31:30 to 1:40:25
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1:31:11 to 1:31:32( Edit History Discussion )

Sam Brownback: minutes be reserved for myself and before the vote at 4:30. the presiding officer: without objection. mr. dodd: seven mr. brownback: madam president? the presidg officer: the senator from kansas. mr. brownback: how much time

1:31:30 to 1:40:25( Edit History Discussion )
Speech By: Sam Brownback

1:31:33 to 1:31:53( Edit History Discussion )

Sam Brownback: remains on the debate? the presiding officer: 35 minutes. mr. brownback: i will yield as much time as i consume. i want to thank my friend from connecticut. a great family man. saw him out walking this morning. great senator, great hennage.

1:31:54 to 1:32:14( Edit History Discussion )

Sam Brownback: sorry to see you leaving, senator dodd. however, on points on this view, have one thing that i want to raise. there are a series of auto dealers who are here deeply concerned about the consumer financial products piece of this legislation. and they're concerned because it's going to hit them. and i would point out to my

1:32:15 to 1:32:35( Edit History Discussion )

Sam Brownback: colleagues quickly about this that a purchased car, i presume that everybody in this body has purchased a car. probably a number on credit. maybe not everybody. but they've gone into a dealership, they bought a new or used car, asked for financing on that new or used car, and they got it from the local dealership.

1:32:36 to 1:32:57( Edit History Discussion )

Sam Brownback: 94% of those cars that are financed this way, tt then -- that paper is actually from some relationship that they have upstream. it's from a bank. it's from a major consumer auto lending entity. it is from somebody else that does the financing. the local dealership just has

1:32:58 to 1:33:19( Edit History Discussion )

Sam Brownback: the paper there and they're the ones that originate. they sell the car. they arrange for someone to do that. 60% does their own financing. the local car auto does their own i would prefer this actually be built into the base bill, the local auto dealership that

1:33:20 to 1:33:41( Edit History Discussion )

Sam Brownback: doesn't loan the own money isn't required to comply with the consumer financial products in this bill requirement in this bill. it will a another level of regulation on auto dealers that are already struggling to try to get cars to market that people can pchase and financing for individuals.

1:33:42 to 1:34:02( Edit History Discussion )

Sam Brownback: you put another level of regulation, it's going to add more costs and they're already regulated. and this would be regulated upstream already the financial institutions writing the note an paper are already regulated under this bill. why would we do the double regulation in the bill on top of the local regulation that they already have?

1:34:03 to 1:34:23( Edit History Discussion )

Sam Brownback: and that's why the auto dealers are here in town today. -- today asking, saying they didn't cause the financial crisis, they're not banks and they don't think they ought to be a part of this. they are quintessential main street. auto dealers are. and wlost a lot of auto

1:34:24 to 1:34:44( Edit History Discussion )

Sam Brownback: dealers across this country in this financial downturn. we spent $3 billion trying to support the auto industry and now th is a heavy-handed regulation that's going to cost auto sales. and it doesn't seem to make sense that we would penalize main street for wall street's problems. they are small businesses, the auto dealers are.

1:34:45 to 1:35:05( Edit History Discussion )

Sam Brownback: cities and towns throughout the country and we should talk about how we can support them and extend credit in the marketplace rather than regulating and tamping down their business. my amendment is very simple. it keeps the new banking regulations from touching auto dealers that do not loan their own money, that's all it does. if they loan their own money,

1:35:06 to 1:35:27( Edit History Discussion )

Sam Brownback: they're subject to it. if some other bank, major house, financial institution does it, that financial house or institution is subject to the regulation, but the auto dealer who is simply there trying to get a car sold and providing this instrument that comes from somebody else, they're not regulated. so they don't have the extra costs.

1:35:28 to 1:35:51( Edit History Discussion )

Sam Brownback: so it's not double regulation from the same bill. and if an auto dealer does lend that money, as i mentioned, they'll be regulated, but this amendment only applies to auto deal hoarse facility loans -- who facilitate loans from larger financial companies. if i'm hearing anything from

1:35:52 to 1:36:13( Edit History Discussion )

Sam Brownback: across my state, and i'm traveling a lot across kansas, they have had it with heavy-handed big government. why would we do this on top of it. franchised auto dealers are the retail outlets. they're the store fronts who press the paperwork for various branches with finance arms.

1:36:14 to 1:36:34( Edit History Discussion )

Sam Brownback: under my amendment the finance arm would be regulated, but the dealers who process the paperwork wouldn't. it's still regulated. it's not at the auto dealership themselves who have been crippled off of sales this last year, crippled off of the financial crisis that we hit and we've been trying to help and

1:36:35 to 1:36:55( Edit History Discussion )

Sam Brownback: support it and this is -- you're breaking the cardinal rule. if you want less of something, tax an regulate it and that's what this is going to do. you have less of auto dealerships becauseou you're going to tax an regulate it. under my amendment auto dealersships would be regulated by the f.t.c. and various state

1:36:56 to 1:37:17( Edit History Discussion )

Sam Brownback: laws. so there wou be truth-in-lending that still applies. if they're concerned about auto dealers and what they'ring to in writing the paper retailwise, they remain regulated by the f.t.c. and various state laws an consumer protection laws currently in place. and i think those are things that should remain in place. they do remain in place, but we

1:37:18 to 1:37:39( Edit History Discussion )

Sam Brownback: don't need another level on top of it. why do we need to create a duplicative for each auto dealership and write each loan twice? this is what frustrates people so much. i've heard raised that people are concerned aut what happens outside of military bases and auto loans outside of mility bas.

1:37:40 to 1:38:01( Edit History Discussion )

Sam Brownback: we have several major military bases in the sta of kansas. we're very proud of our military bases and very proud of the mivment and they're siing that we want to get at auto loans and auto dealers there. they are regulated. they are currently reg laivmentd they are currently regulated under the f.t.c. and -- regulated. they are currently regulated under f.t.c. and various state laws.

1:38:02 to 1:38:23( Edit History Discussion )

Sam Brownback: if they're concerned about an auto dealership and trying get financing for the military members, that's currently regulated. there are many states attorney generals that go after them now. it's not as if they're hiding. they're located outside of military bases. if you want to hit attempt and

1:38:24 to 1:38:45( Edit History Discussion )

Sam Brownback: regulate them, go to the state's attorney generals, go to the product agencies go to the state finance agencies and have them address it. why on earth with a big financial problem we've had that's beenreated by wall street and international traders, do you hammer the local auto dealer instead? and it's very interesting to me

1:38:46 to 1:39:06( Edit History Discussion )

Sam Brownback: as well as i put this amendment forward, we've had a number of groups say, you know, the recreational vehicles, people who sell recreational vehicles, they're interested into being brought into this amendment and exuded or motor vehicle finance or any number of groups because they're seeing the same problem. they are small business people. they're going to be regulated by this enormous federal entity

1:39:07 to 1:39:29( Edit History Discussion )

Sam Brownback: that was targeted at wall street and instead they, as a small business in their local community, are going to get hit. they're going to take the hammer and they're not setup to handle it. they don't have huge staffs and these -- in these areas. they've got small staffs to take care of -- and now you're going to put a big regulatory entity

1:39:30 to 1:39:50( Edit History Discussion )

Sam Brownback: on top of them that's already regulated upstream. it makes no sense. it will do no good. it will cost a lot more. it will make financing less available to individuals. it will hurt these businesses. it will hurt car sales. it will hurt motor vehicle sales. it will hurt these sales, hurt the economy for no good reason.

1:39:51 to 1:40:11( Edit History Discussion )

Sam Brownback: i would ask my colleagues to focus in on what's happening in this area of the consumer products and their financing. and do we really want to hit auto dealers? i don't think so. i don't think that was the target of this bill. it certainly wasn't the cause of the financial crisis that we had.

1:40:12 to 1:40:25( Edit History Discussion )

Sam Brownback: and why would we have to hit them? we don't. listen to your local auto dealers. they're here in town today. hear their story about what's taking place. and, really, let's dealer as we have been trying to