Senate Proceeding on Jun 7th, 2011 :: 0:35:40 to 0:44:15
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0:35:36 to 0:35:57( Edit History Discussion )

Bob Corker: it is my understanding that i have ten minutes. is that correct? the presiding officer: that's correct. mr. corker: and if i happen to go eight minutes or so, would you let me know i have two minutes left? the presiding officer: yes. mr. corker: i thank you very much, madam president. i rise today to speak about something that's affectionately known as the durbin amendment. during the dodd-frank debate

0:35:40 to 0:44:15( Edit History Discussion )
Speech By: Bob Corker

0:35:58 to 0:36:19( Edit History Discussion )

Bob Corker: that occurred about a year ago and upon its passage, there was an amendment brought to the floor called the durbin amendment by dealt with debt coast guar-- withdebit cards and regulating debit cards. this amendment had nevada been debated there. had never been a hearing on this amendment. and in the height of i think people being very concerned

0:36:20 to 0:36:41( Edit History Discussion )

Bob Corker: about the large financial institutions in our country, this was an amendment that passed. i voted against it. i thought it was bad for us as a country to allow the federal reserve to begin setting prices for specific industries, as the durbin amendment called for. but, in any event, the durbin amendment became law, and i know

0:36:42 to 0:37:02( Edit History Discussion )

Bob Corker: that numbers of people in this body have been contacted since that time about the effects of the durbin amendment. what the durbin amendment did was tell the federal reserve to set prices on debit cards based on incremental costs. let me say that one more time --

0:37:03 to 0:37:25( Edit History Discussion )

Bob Corker: based on incremental covment in other words, when a business does business, there are fixed costs and there are incremental costs. and it would be like saying to a pizza company that sells speat as does across the counter that the only thing they could charge

0:37:26 to 0:37:46( Edit History Discussion )

Bob Corker: for is what went into the dough. i'm obviously opposed to price setting. i realize we don't have 60 votes in this body to just do away with price-fixing and generalize debit card. a lot of people believe that there is a problem, if you will, with an almost monopolistic-type

0:37:47 to 0:38:07( Edit History Discussion )

Bob Corker: atmosphere as it relates to debit cards in general. so what i've tried to do is seek a better solution than the one that has come forth. senatosenator tefort and i have worked -- senator tefort and i have worked together. we've made several rerigs to the amendment.

0:38:08 to 0:38:29( Edit History Discussion )

Bob Corker: and it's been crafted in a way to bring people together. what it really does, the essence of it is it directs the fed, instead of setting prices on debit card based solely on the incremental cost of the transaction, it allows them to consider all costs, both fixed and incremental, something that anybody in this body that

0:38:30 to 0:38:50( Edit History Discussion )

Bob Corker: happened to be in business certainly would want to be the case. so, look, i know there's been a a lot of populism in this body and a lot of people have tried to rail, if you will, against financial institutions. and i know a lot of people have empathy with retailers that find themselves in a situation where

0:38:51 to 0:39:11( Edit History Discussion )

Bob Corker: it's difficult for them to negotiator prices, as it relates to debit cards. what this would do, though, is still leave debit cards as a regulated entity. it's not the solution i would ultimately like to see, but i think that's a solution we may be able to come to in this body. it would leave it regulated, but it a would direct the fed to

0:39:12 to 0:39:32( Edit History Discussion )

Bob Corker: consider -- to consider all costs, consider fixed and incremental costs. again, it is a very commonsense mairchlt i know there's been lots of discussions about a solution to this durbin amendment. i know it's an issue that most people in this body would like to see go away. a lot of people feel like they're being pitted, if you

0:39:33 to 0:39:53( Edit History Discussion )

Bob Corker: will, between the financial industry and retailers. i think the solution that senator tester and i working with senator crapo and others, i think the solution that we've come up with is one that meets the commonsense test. it brings people together around a policy, solving a problem that was created.

0:39:54 to 0:40:14( Edit History Discussion )

Bob Corker: again, without a lot of discussion on the senate floor and certainly no hearings. so i would just ask the other members of the body to please talk with their staffs about the most recent changes that have been put forth in this amendment. this is not something that's trying to stave off or keep the effects of the durbin amendment

0:40:15 to 0:40:37( Edit History Discussion )

Bob Corker: from taking place. but what it does is put a more fair structure in place where the fed can actually look at all costcosts relating to a transaction. again, think about it. if you were selling pizzas in a pizza restaurant, a retail establishment, and you were told that the only thing you could do is charge for the dough that

0:40:38 to 0:40:59( Edit History Discussion )

Bob Corker: went into the pizza, nothing else, none of the rent, none of the other costs that go with operating your facility, obviously you wouldn't be in business very long. i think all of us want to see the financial industry continue to innovate. i think all of us see a day when we're going to be able to basically pay bills with our electronic devices and continued innovation is going to take

0:41:00 to 0:41:20( Edit History Discussion )

Bob Corker: place, which causes our economy to expand. and i do believe that this amendment has shaped by numbers of members in this body, meets the commonsense tevment i think it provides a good solution for those people who actually voted for the durbin amendment on the floor and realized afterward

0:41:21 to 0:41:42( Edit History Discussion )

Bob Corker: that what was happening was putting in place a price structure that really is not sustainable for debit cards and over time, no question, over a very short amount of time quickly is going to be very adversely affecting consumers all across this country. so, madam president, i thank you for the tester-corker amendment is

0:41:43 to 0:42:03( Edit History Discussion )

Bob Corker: an amendment designed to create a more productive solution than we've offered under the dodd-frank debate and the durbin amendment. and i hope that all members of this body will look at this seriously. i know everybody has been contacted. this is a very contentious issue, i understand. the solution that's being put

0:42:04 to 0:42:24( Edit History Discussion )

Bob Corker: forth is being put forth, again to solve a problem, not to take one side or another. it leaves the debit card industry as a regulated industry, but it allows the fed, as it should, to take into account both fixed and incremental costs, as they look at what the pricing structure ought to be. in addition, i know a lot of people have been concerned about

0:42:25 to 0:42:46( Edit History Discussion )

Bob Corker: what's going to happen with small financial institutions. obviously, their costs of debit transactions is much higher than the larger institutions in this country. people have been concerned about the impact on them and what this would also do is give the fed the ability every two years to

0:42:47 to 0:43:08( Edit History Discussion )

Bob Corker: see if the policy that they put in place is adversely affecting the smaller, rural banks, the community banks, smaller credit unions, to make sure that if they are being affe being affected adversely, then they can recommend some legislative fixes to that.

0:43:09 to 0:43:30( Edit History Discussion )

Bob Corker: so, madam president, again, i hope members of this body will see this as a reasonable solution. i urge all of you to contact me personally or senator tester personally to talk this through, if you have any questions. and hopefully we can bring to an end this contentious debate over an amendment that was passed on

0:43:31 to 0:43:53( Edit History Discussion )

Bob Corker: the senate floor without any hearings, and i think all of us know is going to create a lot of unintended consequences for people all across this country. and with that, madam pre i yeef. -- i yield the floor. madam president, i notice the ab the presiding officer: the

0:43:54 to 0:43:59( Edit History Discussion )

Bob Corker: clerk will call the roll.