Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, we are currently in the midst of the longest transitional leadership gap at the Department of Treasury in our Nation's history. The…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, we are currently in the midst of the longest transitional leadership gap at the Department of Treasury in our Nation's history. The Senate has never let this much time go without a Treasury Secretary. In fact, the Senate has never left Treasury without a confirmed Secretary in between administrations for this long. Yet, despite the obvious need to fill this position, we have had to deal with continual and pointless delays, courtesy of some of our colleagues.
I will not begrudge any Senator for taking advantage of the privileges offered to them under the rules of the Senate; however, I think we have ample reason to question some of our colleagues' judgment and priorities with regard to how we have dealt with the nomination of Steven Mnuchin to the Office of Treasury Secretary.
Let's get the obvious points out of the way. Mr. Mnuchin has 30 years' experience working in a variety of capacities in the financial sector. He has experience managing large and complicated private-sector enterprises and in negotiating difficult compromises and making tough decisions--and being accountable for those decisions. He has the support of a number of key organizations and associations within the finance industry, and experts across the ideological spectrum have endorsed his nomination.
Long story short: Under any objective standard, Mr. Mnuchin has ample experience, credentials, and qualifications for this important position. Yet my colleagues have done all they can under the rules-- even to the point of casting aside some longstanding customs and traditions of the Senate--in order to delay his confirmation.
I will not relive the entire chain of events that got this nomination through the Finance Committee, bringing us to this point. For now, I would urge my colleagues to look fairly at the record. In every case, as the committee processed his nomination, Mr. Mnuchin responded to questions and allegations with full and complete answers and demonstrated no signs of acting or responding in bad faith toward the committee or its members.
People are free, I suppose, to walk into the confirmation process with an assumption of bad faith. But throughout my time in the Senate-- and keep in mind, I have been here a long time--that isn't usually how we operate around here.
My colleagues on the other side have put forward a number of claims and allegations about Mr. Mnuchin. They have essentially thrown everything, including the kitchen sink, at this nominee in a desperate attempt to block his confirmation. Well, so far, nothing has worked. That is because none of the allegations my colleagues have raised can withstand even a modest amount of scrutiny. But that hasn't stopped some of them from trying.
I have found it particularly interesting to see my friends raise concerns about matters that did not bother them in the least when it came to voting for Democratic nominees for Treasury Secretary. Indeed, with regard to Mr. Mnuchin, my Democratic colleagues have created a wholly new set of standards from those that were applied to the most recent previous Treasury Secretary. Many issues that seemed to be of little or no concern to my colleagues and my friends on the other side during the confirmation process for Secretary Jack Lew have been considered disqualifying for Mr. Mnuchin. By the way, many of these problems existed in the prior Treasury Secretary too. But we, in good faith, brought him through and allowed him to go through without a lot of fuss and bother.
Let me review just a few of the discrepancies that are claimed.
Mr. Mnuchin placed some investments offshore, in full conformity with the law and not for the purpose of avoiding U.S. taxes. But my friends have simply asserted that no one uses offshore financial vehicles unless they are trying to avoid U.S. taxes, and, therefore, Mr. Mnuchin's investments disqualify him to serve as Treasury Secretary. Yet Secretary Lew, prior to his confirmation, actually made investments in the famous Ugland House in the Cayman Islands, which President Obama described as ``outrageous'' and ``the biggest tax scheme in the world.'' My Democratic colleagues knew this, but did not care, and happily confirmed Secretary Lew with hardly a mention of this matter. We allowed him to go through, in the interest of civility and getting along with our colleagues.
Democrats have argued that Mr. Mnuchin unduly profited from the housing market collapse. Yet Secretary Lew, prior to his nomination, ran ``proprietary trading'' groups at Citigroup, where they invested in a hedge fund that bet heavily on the collapse of the housing market. My Democratic colleagues knew this, but did not care, and happily confirmed Secretary Lew without really ever acknowledging this part of his record.
Democrats claim that Mr. Mnuchin unfairly foreclosed on homeowners, despite evidence to the contrary. Yet Secretary Lew, prior to being nominated, ran a Citigroup division that was, according to arbitration panels at the Financial Industry Regulatory Authority and later the SEC, ``defrauding investors.'' When asked about the toxic securities sold by his Citigroup unit, Secretary Lew's answers varied between not remembering any specific securities to claiming he somehow wasn't involved in the investment decisions made at the Citigroup unit he oversaw. My Democratic colleagues knew this, but they did not care, and happily confirmed Secretary Lew without anything resembling full and complete answers to these questions.
Despite ample evidence to the contrary, Democrats claim that Mr. Mnuchin ran a ``robo-signing'' foreclosure machine. Yet Citigroup, while Jack Lew was in senior management, sliced and diced mortgages and was alleged to have ``robo-signed'' mortgage documents. Democrats knew this, but they did not care, and happily confirmed Secretary Lew without ever really asking him about these issues.
I can go on and on. There are many other issues that my colleagues were willing to overlook, if not outright ignore, with regard to Secretary Lew that have resulted in hyperbolic attacks on Mr. Mnuchin.
I wish to remind my colleagues that despite the numerous concerns that I and others have had about Secretary Lew and the many significant disagreements that I had with President Obama's agenda, I voted in favor of Secretary Lew's confirmation. On this very floor, I stated the following:
I have always believed that . . . [the] President--any
President, regardless of party--is owed a certain degree of
deference when choosing people to work in his administration.
Therefore, though I personally would have chosen a different
person for this position, I intend to vote in favor of Mr.
Lew's confirmation.
I wasn't alone. Many other Republicans also voted to confirm Secretary Lew, despite serious reservations, in recognition that the President had a right to appoint who he wanted to--as long as they were not crooks and people of unsavory reputation. Well, Mr. Lew was not either of those.
My, how times have changed. As is typically the case, when a group of Senators is unable to make a believable case against a nominee, they tend to just raise every possible issue and hope something gains traction. When in the end nothing works, they cling to whatever allegation came last and hope it is enough to change the outcome. That is why, over the past couple of weeks or so, we have heard an awful lot about ``robo-signing.''
Here is the basic rundown of what has happened on this issue: My friends on the other side got an answer to a poorly and vaguely worded question that was not the answer they wanted to receive. The answer from Mr. Mnuchin, that OneWest Bank did not engage in ``robo-signing'' under his leadership, was truthful and defensible, but it did not conform to the Democratic talking points drafted for this nominee.
Since that time, Senate Democrats have repeatedly referenced new stories that purportedly prove that not only did Mr. Mnuchin run a bank that engaged in the nefarious, yet not well-defined practice of ``robo- signing'' mortgage documents, he lied about it in his answers to the committee. However, I would urge my colleagues on both sides to actually look at the supposed evidence from those news articles.
Put simply, to say that my Democratic friends are trying to make a mountain out of a molehill would be an insult to moles everywhere. There is no molehill to be found here.
To make the case that Mr. Mnuchin was untruthful in his answers, the articles rely on quotes mined from a single deposition of a OneWest employee. Quoted out of context, the employee seems to have said that she rapidly signed several hundred foreclosure-related documents a week without fully verifying their accuracy. That is the supposed smoking gun on the Mnuchin ``robo-signing'' question.
However, if you read the full deposition, the employee makes it absolutely clear that she was not the employee responsible for verifying the accuracy or validity of everything in the documents. She was part of a process that included several steps and multiple employees to verify the accuracy of different parts of the documents. We don't even have to dig for this explanation. It is not a matter of any interpretation. That explanation, in plain
English, is right there in the deposition my colleagues and the news articles have been using as ``evidence'' that Mr. Mnuchin lied to the Finance Committee.
Nothing--not a single thing--in the deposition quoted in those news articles could be considered evidence of ``robo-signing'' on the part of OneWest Bank.
While I can understand that my colleagues don't like seeing or hearing anything that contradicts their preconceived notions, particularly when it comes in the form of an answer to one of their questions, that is no basis or justification to make wild and brazen accusations that a nominee has been lying. And make no mistake, that is precisely what they are doing with Mr. Mnuchin.
On a related note, it is really amazing to me that my friends on the other side are now feigning outrage over alleged lack of responsiveness to their questions after having gone through the last 8 years with Treasury Secretaries who routinely ignored questions and requests for briefings posed by myself and a number of my other Senate colleagues. But I digress.
I certainly sympathize with the many people who suffered through the foreclosure crisis and with Democrats in Congress who were, and continue to be, frustrated that Treasury officials in the Obama administration failed to construct effective homeowner relief programs, despite having made numerous promises to do so.
However, given that frustration, it is odd to me that my colleagues remain so opposed to Mr. Mnuchin's nomination when he was very much engaged in the practice of making mortgage modifications work during his time as the head of OneWest Bank. Moreover, Mr. Mnuchin worked diligently with regulators and others to clean up the system under which foreclosure documents were being processed. You don't have to take my word for it; you can examine the numerous letters of support we have received from a range of people and organizations, from community groups to community bankers, which attest to Mr. Mnuchin's success in turning a bank that was plagued by toxic loans and numerous processing errors into a viable financial services firm that provides jobs and support to communities.
Along the way, Mr. Mnuchin's companies significantly outperformed rivals in the industry in terms of offering loan modifications to help keep Americans facing foreclosure in their homes. Mr. Mnuchin has acknowledged that his efforts were not without errors and that he genuinely regrets any mistakes that were made. He has also made clear that OneWest was committed to providing remediation in order to compensate those who were affected.
It should also be noted that in the vast majority of independent evaluations of OneWest's practices, the banks's error rates were routinely below the average for the industry and often zero.
I think people should quit using false arguments against this man. All of this was discussed out in the open during the Finance Committee's hearing on the Mnuchin nomination. Nothing was hidden. No one was misled.
Unfortunately, rather than focusing on the actual facts surrounding OneWest's performance under the nominee's leadership, my friends on the other side opted to try to smear Mr. Mnuchin. In essence, they have tried to relitigate the foreclosure crisis, with Mr. Mnuchin's company confusingly placed in the crosshairs. This is a company that, according to a letter from Faith Schwartz, former executive director of the Hope Now Alliance, ``was committed to avoiding foreclosures where possible.''
As I said, with Mr. Mnuchin, my colleagues are applying a clear double standard for confirming a Treasury Secretary. For Republican Treasury Secretary nominees, any allegation, no matter how careless or untrustworthy the source, is enough to inspire the Democrats' outrage and trigger a seemingly endless bout of name-calling. For Democratic nominees, on the other hand, even proven instances of questionable actions and poor judgment on the part of the nominee fail to even make a blip on their radar screens.
I have spent quite a bit of time in recent weeks decrying the antics of my Democratic colleagues with regard to President Trump's Cabinet nominations. Frankly, I am tired of talking about it. My colleagues are, of course, free to do whatever they think will help them hobble the new administration and score points with their political base, even if it breaks from the longstanding customs and traditions of the Senate and even if it puts our financial stability and the stability of our relations with Finance Ministers of other countries at greater risk. However, they should know that these tactics do absolutely nothing to help American families seeking greater opportunities and economic growth. They don't help us fix our broken Tax Code, reform our failing health care system, and empower businesses and job creators to grow and expand.
The bottom line is this: Mr. Mnuchin is clearly qualified to serve as Secretary of the U.S. Treasury.
Some of my colleagues on the other side of the aisle made clear they intend to vote no on the nomination, and that is their right. However, while each Senator has a right to vote according to his or her own judgment, Senators do a disservice to the country and the Senate as an institution when they concoct stories and antics designed merely to delay a vote for the sake of delay. Going forward, I hope my colleagues will recognize the problematic precedence they are setting with regard to these nominees and opt to change course.
I intend to vote in favor of confirming Mr. Mnuchin, and so should everybody else in the U.S. Senate. I urge all of my colleagues to do so.
When I first met Mr. Mnuchin, I hadn't met him before. I didn't even know his name. I have to say I was really impressed.
I said to him: Why are you doing this? You are going to lose a lot of money because you are going to have to sell your holdings and get rid of them. Why are you doing this?
He looked at me, looked me square in the eyes, and he said: I am doing it because I love my country, and I want to help. I want to help turn it around.
I was pretty impressed with that. I have been pretty impressed with Mr. Mnuchin ever since. I think we need a terribly smart guy who is honest, who is decent, who has made a great success of his life, who understands where money comes from and where it goes, who literally is willing to sacrifice and lose some of his savings and money in order to save this country and because he wants to work with our good President, who every day is going through calumny and slanders like I have never seen anybody go through before.
The slowdown in the Senate that is occurring here is unbelievably stupid. Yes, I know they want his first 100 days to not be successful, but gee-whiz, to do this kind of maneuvering and this kind of playing around with the facts is beneath the dignity of my colleagues on the other side.
If my side was doing this, I would be chewing them up. The fact is, we didn't do this. The past two Treasury Secretaries--I personally said ``We are going to support them'' even though we could have pulled this kind of stuff on them, and the facts were true. Both of them were good people. Both of them had made a couple of mistakes. Both of them made mistakes in their filings. But they were good men, good people, and so is Mr. Mnuchin.
Wouldn't it be wonderful if both sides would treat people with respect and dignity? I have to admit, sometimes our side could do better, but what we have been going through for the last almost 2 months now is pathetic. I think it is all done in the hope that they can ruin the first 100 days of this President. Well, there are 200 days, and we are going to keep going.
They are not making any headway with the President where they could make headway. He is someone who actually came from their side of the floor--at least at one time when I knew him long ago. He is a person with an open mind. He is a person who has supreme intelligence. He is a person who is bringing with him some of the best people in this country, not the least of whom is Mr. Mnuchin.
I think they ought to wake up and quit this slandering and even libeling this really fine man who is willing to sacrifice much of his personal fortune to serve in this government as the Treasury Secretary. We are lucky that
people like this are willing to do it, to take all the guff and calumny and slander and libel they have to go through. Thank goodness we have people like Mr. Mnuchin who are willing to do this. I don't intend to see him fail, so I hope we can all vote for him tonight and send a message. I hope some of my colleagues on the other side will vote for him. They should. They should, in good faith. Yes, they can play this game of having a lot of votes against him, but some of them should vote for him. The truly honest, the truly fair, and the truly good people--I think all of them are good people on the other side and on this side, but it is not showing up as well as I would like it to show up in these confirmation fights.
In this particular one, there is a fellow who is willing to sacrifice immensely to be able to help our country, who is known on Wall Street, who is known as one of the bright lights up there, who has been immensely successful, and he has had a wide variety of experiences in the area of finance. We ought to be getting on our knees and thanking him for being willing to go through this and being willing to serve his country.
Mr. President, I suggest the absence of a quorum.