Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, the Secretary of the Treasury is one of the most powerful positions in our government, as we know. The Treasury Secretary has broad…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, the Secretary of the Treasury is one of the most powerful positions in our government, as we know. The Treasury Secretary has broad responsibilities--for the economy, for our tax system, trade, our pensions, housing, and so much more. It is critical that anyone who holds that position use their power to help working people. It is clear to me that Mr. Mnuchin's policies will, in fact, hurt middle-class families and working people.
There are also serious ethical concerns that neither he nor my Republican colleagues have been able to address. As a result, I will be voting no on his nomination.
I would like to talk about something that has not received the focus that I think it deserves and certainly that the people of Michigan feel it deserves, and that is the question of pensions and what is happening to pensions in our country.
Mr. Mnuchin has a history of fighting against working people and profiting off their misfortune. As we know, pension funding can have a significant impact on a company's bottom line. But losing a pension can destroy a family's bottom line, and it seems that Mr. Mnuchin doesn't know this. When serving on the board for Sears, Mr. Mnuchin played a critical and direct role in how to fund the company's pensions. So what happened? Sears routinely underfunded the company's plan throughout his tenure. Analysts predicted that Sears ``massively underfunded'' their pension plan. They said their ``massively underfunded'' pension plan was ``a ticking time bomb'' that could even hasten or bring down the financial collapse of the company.
The company used investment return projections that were too optimistic, along with accounting gimmicks so they could avoid paying into the pension fund. They inflated their earnings on paper while contributing less to the pension.
Sears did such a bad job managing their pension fund while Mr. Mnuchin was on their board, that the fund only made a return of 1.5 percent, putting their fund in the bottom 5 percent of all the pension funds over $1 billion. Is this the kind of result the American taxpayers want when he manages their money?
Already, Sears has been cutting its employees' pensions. In 2014, the company eliminated the monthly health care subsidy that helped its retirees afford their health care premiums. That saved Sears and Kmart about $6.2 million a year.
I have received a lot of letters from Michigan families a lot from families who are very concerned about their pensions. One of my constituents who worked in the trucking industry said:
We took small raises on our paycheck each contract so the
company could put more in the pension fund--
That is what people do. They take less every month in their paycheck so they can have more in the pension fund. I know in the Presiding Officer's State and my State, that is what they do. He continued--
and [we] were told we would receive a certain amount for the
rest of our lives. That is what we based our retirement on.
Through no fault of ours, over the years, government
deregulation of the trucking industry, passing trade
agreements and other laws that have devastated the economy,
have made our pensions become doubtful.
Can you imagine paying all your lifetime? My brother drives a truck and counts on the fact that he is working hard every day and putting money into a pension fund for his family when he retires, and it is supposed to be there, right? The pension is a promise that is supposed to be there.
Another woman from West Michigan wrote in worried about her Central States Pension Plan. That is the pension plan my brother is in as well. She said:
My husband retired from Grocers Baking Co. of Grand Rapids
and has a pension in Central States Pension Fund. As you
know, that pension fund is in critical status and the
Treasury Department turned down a plan to save all the
pensions. My husband is 74 and I am 78 and we rely on that
pension and Social Security to live on. We try to save, but
it is difficult. We are hoping that the pension will last
more than 10 years, but who knows.
I also hear from people in Michigan all the time about how little accountability there is when it comes to the management of people's pensions.
One man wrote in from Macomb County about his own pension plan:
Why are none of the trustees being held accountable for the
bad investments or failure of the plan? I'm sure they all
have their golden parachutes in place for when they retire.
Why do we, the hard workers, have to suffer because of their
incompetence? I am just an average guy hoping that you can
help protect the benefits that are due to me, so I can enjoy
retirement when my time comes.
The Treasury Secretary nominee sat on the Sears board when they were making changes that created the investments that were not as good as they should have been, when they underfunded their pension system, cut back on help for health care, and he is asking for a promotion. I wonder what my constituents in Macomb County will be saying about that.
The Treasury Secretary plays a very important role in the security of our pension system--one of the basic tenets in our country, the way we support each other, the way people have trust in the system, you know that when you pay into the pension and then when you retire you get the pension.
The Treasury Secretary oversees implementation of the Multiemployer Pension Reform Act and serves on the board of directors of the pension overseers. I asked Mr. Mnuchin in committee: What is your position on the Multiemployer Pension Reform Act, which Treasury is responsible for administering?
How do you propose to shore up our multiemployer pension system and protect people who are counting on their pensions? His answer was: ``You have my commitment to work with you to find solutions to the multiemployer pension crisis.''
That is it. I resubmitted the question, hoping for a more detailed response.
His response was: ``If confirmed, I will consult with you and other interested parties on the Multiemployer Pension Reform Act of 2014.''
That is not much of an answer for the people whom I represent, who want to know how he feels and what he is going to do to protect their pensions. The American people deserve a better answer than that.
People are struggling, retirees are struggling after trusting the system and paying into their pensions their whole life--the whole time they have been working, paying in, counting on having that dignity in retirement. We need a Treasury Secretary who understands that a pension is a promise. Mr. Mnuchin's actions have not demonstrated that he understands that.
Even when it comes to something as basic as Social Security, during our Finance Committee hearing, Mr.
Mnuchin couldn't tell me the average monthly benefit when I asked him, which, by the way, one-third of our seniors virtually rely on that alone, and the rest are putting together a small pension, and most seniors are counting on Social Security and their pension to have dignity and a quality of life in their retirement. The Treasury Secretary is a key overseer of the laws and management process and accountability for both of those systems. So for me this is a very big deal who is in this spot, in terms of how this affects working people, middle-class families, and retirees.
I didn't mention earlier that when I asked him what the average Social Security payment was--which he could not answer--he also couldn't tell me what he meant about a ``cut'' in Social Security; if he wasn't going to cut, what that meant. Did that mean putting in place a lower cost of living? What did that mean? He did not answer that.
Let me talk about another pretty basic area. Pensions are critically important so is the ability to have a home. Up until the financial crash, the disaster in 2008 and 2009, most families' savings for retirement, savings to put their kids in college, were through the equity in their home. In 2008 and 2009, for millions of Americans, that disappeared.
Mr. Mnuchin has made his career profiting from the misfortunes of working people, and let me talk about the financial crisis and how he benefitted from that as well. During the financial crisis, he put together a group of investors to purchase IndyMac Bank, which was renamed OneWest. During that time, OneWest was notorious for taking an especially aggressive role in foreclosing on struggling homeowners. OneWest Bank pushed people into foreclosure and made their last-ditch efforts to save their homes through a mortgage modification or other means all but impossible.
When their voices were not allowed at the hearing on this confirmation, I was pleased to join with colleagues in putting together a forum where homeowners who had been impacted could share their experience. We held this forum for homeowners who were repeatedly given hope by OneWest that they might be able to avoid foreclosure, only to have it snatched away every time. One small business owner at the forum told us her story of how OneWest defrauded her and ultimately foreclosed on her. She told us that ``despite how difficult OneWest made the process, I did everything I was told, because I wanted to keep my home.''
Twice she applied for a loan modification. She submitted two checks with her new modification offer. OneWest cashed the checks--they cashed the checks--but told her that both offers were never received.
Wait a minute. What is that? They cashed the checks, then told her the offers were not received, and therefore the offer was void.
Eventually, she said: ``I received a knock on my door and a man introduced himself as the owner of my house.'' Unbelievable. Shortly thereafter she had to leave her home. OneWest was Mr. Mnuchin's company. This is one of the many stories about OneWest's abusive conduct. When OneWest Bank sold, Mr. Mnuchin and other investors made about $3 billion off the backs of folks who lost their home and many were like the women we heard from who tried desperately to work it out to keep their home. I wonder if the checks they cashed from her after they said they didn't get them were a part of that $3 billion.
Finally, I want to express my concern over statements that Mr. Mnuchin made at the Finance Committee hearing that just don't line up with the facts; particularly, Mr. Mnuchin was asked whether his bank, OneWest, robo-signed foreclosure documents. To be clear on what this is, the banks, during the foreclosure crisis, had sworn documents robo- signed, automatically signed so they could foreclose on homeowners quickly without anyone even reading the documents. They just signed the papers--signed the papers--nobody reviewed whether they added up or whether they were right, whether they could help them. They just had the machine signing, signing, signing, foreclose, foreclose, foreclose.
Mr. Mnuchin said in the hearing his bank didn't do that. He said his bank didn't do that. The Columbus Dispatch did an investigation that found that OneWest did do that in Ohio. A source in Texas reported that OneWest did do it in Texas. New Jersey temporarily banned OneWest from foreclosing on homeowners at all in New Jersey because of its history of robo-signing documents. Sign, sign, sign--don't look at it, just sign away. We heard the story of one woman who lost her house because of a 27-cent difference. I wonder if she was in one of those piles they just signed away. Mr. Mnuchin said they didn't do that. There is evidence to the contrary.
Mr. Mnuchin also forgot to disclose to the committee that he owned a company organized in the Cayman Islands. When I asked him about that, his best defense was that ``I did not use a Cayman Islands entity in any way to avoid paying taxes myself.'' At the time, I said: Oh, so you just helped other people avoid paying their taxes.
We find out now he did use it to help foreign investors avoid paying U.S. taxes. I have a funny feeling that he made money by helping those investors avoid paying their U.S. taxes.
He also forgot to disclose that he owned $95 million in real estate in various locations. I forget that all of the time. I have so many houses all over the place, it is easy to forget. So $95 million in property that he ``forgot'' to disclose. He said he didn't know his real estate was an asset. He didn't know his real estate was an asset. That is alarming.
I don't mean to be flip, but this is so shocking when I listen to some of this. The idea that we would believe someone who says this, that it somehow is making sense--that is why we as Democrats on the Finance Committee, before this final confirmation vote, asked that he be required to come back in and answer questions, because these are serious questions.
This nominee has not been properly vetted. He supports policies that do not have the interests of the working men and women in Michigan at heart or people across the country. He adheres to policies that don't protect the pensions of hard-working men and women in Michigan and across the country or people's retirement systems. I don't know where he really is on Social Security, which is the other big piece of the promise we made as Americans, where people pay into Social Security and are counting on that being there. He has personally profited off the misfortune of those who need help the most.
I urge my colleagues to join me in voting no.