Thom Hartmann talks to Rep. Peter DeFazio about the effort by members of Congress to restore the Glass-Steagall Act.

From MyDD--Restore the Glass-Steagall Act:

The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation (FDIC) in the United States and provided a strong regulatory environment that largely served the nation and its banking sector well. The law separated commercial banks from investment banks by banning commercial banks from underwriting securities, forcing banks to choose between being a lender or an underwriter but not both. The law was finally repealed in 1999 during the Clinton Adminstration after 12 attempts in 25 years had weaken the provisions. [...]

This week five House Democrats - Maurice Hinchey of New York, John Conyers of Michigan, Peter DeFazio of Oregon, Jay Inslee of Washington, and John Tierney of Massachusetts - will introduce an amendment that would give banks one year to choose between being commercial banks or investment banks. I support this amendment and believe it critical to the future success of the country because it will restore a balance within the finance industry letting commercial banks do what they do and investment banks do what they do.

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From The Ed Schultz Show, Rep. Peter DeFazio (D-OR) says President Obama is not being served well by his economic advisors and that there is a growing consensus from the Congressional Progressive Caucus that the president needs to dump Tim Geithner and Larry Summers. DeFazio added that "We may have to sacrifice just two more jobs to get millions back for Americans."

Schultz: What kind of progress can be made to make sure that TARP goes where it's really going to stimulate the economy--small business and infrastructure?

DeFazio: Well, that's our money. It was borrowed in the name of the American people. It was borrowed to bail out Wall Street which has worked famously for Goldman Sachs and others. You know, we think it is time, maybe, that we turn our focus to Main Street, we reclaim the unspent funds, we reclaim some of the funds that are being paid back, which will not be paid back in full, and we use it to put people back to work. Rebuilding America's infrastructure is a tried and true way to put people back to work.

Unfortunately, the President has an adviser from Wall Street, Larry Summers, and a Treasury Secretary from Wall Street, Timmy Geithner, who don't like that idea. They want to keep the TARP money either to continue to bail out Wall Street if there are future problems or maybe to...

Schultz: So Geithner does not want to give the money to small business--the TARP money?

DeFazio: No. They're saying they've got to keep the money. There may be more needs on Wall Street or maybe they should use it to pay down the deficit. That's absurd. We borrowed the money. How do you pay down the deficit...

Shultz: Should he stay in his job Congressman?

DeFazio: No.

Schultz: You think he should be gone as Treasury Secretary?

DeFazio: I do especially if you look back at the AIG scandal and Goldman and others who got their bets paid off in full--instead of saying " Well you bet, you lost"--they got paid back in full with taxpayer money through AIG. We channeled the money through them. Geithner would not answer my question when I said, 'Were those naked credit default swaps by Goldman or were they a counter-party?' He would not answer that question." I think they were naked credit default swaps, they were bets. They should not have gotten their money back.

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Woot! I love it when we get some plain-spoken truth on the House Floor. Such a refreshing change from the Republican lies and fear-mongering.

The Republican record defies their rhetoric. Remember their so-called Prescription Drug Benefit for Seniors passed in the dark of the night? No one read the bill, didn’t know what was in it. Cost 700 billion dollars ‘cause that was subsidizing the pharmaceutical and insurance industry. But now, they’re worried about costs. It gave the seniors a donut hole.

Now their concern is not about what they’re stating. It’s about their patrons in the insurance industry. Because this bill has real reforms of the worst abuses of the insurance industry. It takes away their unfair anti-trust immunity, so they can no longer collude to drive up premium prices or restrict coverages. The Republicans would continue the anti-trust exemption. This bill outlaws the unfair pre-existing condition restriction. Republicans would continue that for the insurance industry. This bill would not allow the industry to cancel your policy even though you’ve been paying your premiums when you get sick. It’s called recission. The Republicans allowed that abuse to continue. This bill, on our side, outlaws the small print that limits your lifetime coverage, which bankrupts families every day in America. The Republicans allow it to continue.

And that’s not enough. They’ve opened up a new loophole, their so-called national plan: a company would only be regulated by the laws of the state in which it was based when it sold you a policy. If you live in Oregon, but you bought a policy that was written--and oh, by the way, they expand the definition of state to include the territories in the Mariana Islands—so if you’ve got a problem, call the Mariana Islands Insurance Commissioner. That’s the Republican plan and profits to the insurance industry!

Rachel Maddow reports on our country's crumbling infrastructure. She talks to Congressman Pete DeFazio about the compromises that were given in the bill which ended up getting zero support by Republicans anyway and the need for more infrastructure spending in that bill.