'No Limits'

" I would 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 is on the house financial services committee congressman good to have you with us today welcomed. Good to be with you you we are in the -- as you well know some legislation that is and going to be put forth this week next week around that time frame. That 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 awaited 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 the company --"

" What he's put forward is -- on steroids. It's just part is -- temporary program. What's being put forward is a permanent program TARP was limited to 700 billion dollars. DNA 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 respond immediately using congressman right you asked him -- will -- sign off mr. Treasury Secretary on a one trillion dollar limit. On how much the American government can spend and he said no I really can't do that is that right."

" That so basically. Hit in. I'm not saying that there might not be a future crisis but I think -- thing you bring congress together. And decide whether we wanna go to bail out route again or whether we want to do something else."

" You know I'm curious about is why are trying to figure out you know how to prevent the how to see 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 -- that we can slap -- when it does happen again."

" The answers you need to do everything. You cannot failed to build a safety net but you also don't wanna do dangerous things on the trapeze. U. 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 the."

" I think a lot of people are wary of you know congress' ability to overseas some of these things I want to play a sound bite from Barney Frank that goes way back and I -- when they're familiar -- Let's listen to that."

" 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 we talk about here Fannie Mae and Freddie Mac are not any 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 -- financial assistance programs CDF -- I think it's called. 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."

" We'll -- 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 and -- countrywide does stock short. And turned to million dollars and two billion dollars I haven't met that person yet. Nobody in 2003 was. Clairvoyant enough. To see what would happen in 2008 few people realize that it was he risk a possibility. But I am not that anybody who bet the farm. On. On the disaster. Occurring."

" I in the pilots -- now is anything being done today and implement. Caps on exactly how much money we know isn't going to be a bottomless pit that we can do with -- to save more. Businesses that are too big to fail in this country are getting anywhere fat."

" I'm spending most of this month fighting against this proposed section twelve rule four. The idea that we would give the executive branch the right to bail 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 they'll get money at lower rates of interest. And they'll be able to take big risks with a big money that they --"

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