'No Limits'

" I were never tire. The program that -- 700 billion dollars to companies that Howard Dean just too big to fail for the US economy. Well now there's a new proposal that's in the work by Treasury Secretary Tim Geithner. And California congressman Brad Sherman believes that this new plan which is really to prevent further economic crises. Would set actually no limits on the amount of money that would be able to be given out to save -- company that was too big to fail. Sherman says this quote -- contains some limits. I executive compensation. And on an array of special oversight at parties section 1204. This is from the new bell. Contains absolutely no limits on future executive compensation and no special oversight could that be. California congressman Brad Sherman joins us now his -- house financial services committee congressman good to have you with us today welcome. Good to be with you you we are in the mail as you well now. Some legislation that is and going to be put forth this week next week around that time frame. -- is gonna try to prevent a future economic crisis from happening and help us deal and if it does have huge companies huge financial firms. The car companies alike Gaudin in the future -- to help them out and you say that Tim Geithner wants there to be absolutely no limit on how much money would be spent to savings as -- company if."

" What he's put forward his purple on steroids. -- its its part is a temporary program. What's being put forward is a permanent program TARP was limited to 700 billion dollars. In -- hearings the secretary -- refused a one trillion dollar limit on this new authority that he liked the executive branch to have. And."

" And I don't responding -- using congressman right you asked him there was you sign off mr. Treasury Secretary on a one trillion dollar limit. On how much the American government can spend and he said -- I really can't do that is that right."

" That's basically. Did and I'm not saying that there might not be a future crisis but I think then you bring congress together. -- decide whether we wanna go the bailout route again or whether we want to do something else."

" You know I'm curious about is why we're trying to figure out you know how to prevent hadn't seen this once it happens again. Shouldn't be focused on you know putting in measures to make sure that this kind of you know run away a you know investments that we saw that led to the sub prime mortgage. Crisis that that doesn't happen again instead of figuring -- a big new band -- that we can slap -- when it does happen again."

" The -- you need to do everything. You cannot failed to build the safety net but you also don't wanna do dangerous things on the trapeze. You. We passed through the committee earlier this week. He billed to very strictly regulate the derivatives now I would've liked to build the -- even stronger. But it was a step toward eliminating the credit default swap risks. That that helped get us into this."

" yeah I think a lot of people are wary of you know congress' ability to overseas some of these things I wanna play a sound -- from Barney Frank that goes way back and I know it's funny you're familiar -- let's listen to --"

" I want to begin by saying that I. Embedded into the legislation but. I do not think we are facing any kind of a crisis. That is in my view the two government sponsored enterprise and we talk about here Fannie Mae and Freddie Mac are not -- crises."

" And now back in 2003 Barney Frank who is in charge once again -- we're seeing this legislation for this new consumer protection. Is that financial assistance program CD FA I think it's called. I you know why why it is and then this legislation is being handled by some of the same people who many would say weren't able to catch the problems last time."

" the entire economy in the entire country's being run by people who in 2003. Did not see what was happening in 2008. I've yet to meet the person who says I sold all my assets in -- countrywide does stock short. And turn to million dollars and to a billion dollars I haven't met that person yet. Nobody in 2003 was. Clairvoyant enough. To see what would happen in 2008 a few people realize that it was he risk a possibility. But I have not met anybody who bet the farm. On. On the disaster. Occurring."

" I and the pilots can Dow is anything being done today -- and implement. Caps on exactly how much money we know is -- going to be a bottomless pit that we can do with -- to save more. Businesses that are too big to fail in this country and getting anywhere that."

" I'm spending most of this month fighting against this proposed section 1204. The idea that we would give the executive branch the right to -- out any systemically important financial institution. And allow them to decide whether to spend tens of billions or tens of trillions of dollars to do that. Is is a massive shift of power. From. The people to the executive branch it also will create an image on Wall Street that the too big to fail are -- places to put your money I don't get money at lower rates of interest. And they'll be able to take big risks with a big money that they actually."

" I mean it's an encouragement to had to go out there in time -- risky investments began you have to worry about. Failure because the government believes they are too big to fail so that belly out again as -- the suggestion here. I think he's so much congress -- for being with us -- very involved in all of a sudden we're glad to have you with us today."