Jackie Speier

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor of a remarkable American, Joseph Cotchett, of San Mateo, CA who is on everyone's list of the top 100 most influential lawyers in the nation, a distinction that I believe understates his achievements in the area of law and social justice. Twenty years ago Joe was the lead trial lawyer for 23,000 plaintiffs defrauded in the Charles Keating/Lincoln Savings and Loan scandal, initially winning at that time one of the nation's largest jury verdicts, $3.3 billion. Fast forward to 2009 and he is again representing consumers, this time investors victimized by Bernie Madoff's financial wrongdoings. During his 40-year legal career, he has tried more than 100 cases and settled hundreds more, but this is not the thrust of what I would like to say about him today. Throughout his career he has done extensive pro bono work for the disadvantaged, establishing himself as a true champion of social justice. He lends his skills and talent when it is needed, not when it is convenient. His giving is not restricted to legal work. At the local level, he has been on the board of directors for the San Mateo County Heart Association; the San Mateo Boys & Girls Clubs; the Peninsula Association of Retarded Children and Adults; the Bay Meadows Foundation and the Disability Rights Advocates. Joe and his family have been active in supporting organizations helping children, women, ethnic minorities and animals. The Cotchett Family Foundation was specifically created to aid individuals and groups in need of assistance. In 2004, Joe endowed a $7 million fund to support science and mathematics teacher education at California State Polytechnic University, a program aimed at serving inner city and rural minority children. He is an accomplished author, lecturer and keynote speaker. His titles include The Ethics Gap and California Courtroom Evidence Foundations. Although he has focused on legal matters, in 2002 he co- authored and published, The Coast Time Forgot, a historic guide to the San Mateo County coast. Joe Cotchett truly loves the community in which he lives and works and it is only fitting, Madam Speaker, that on May 21, 2010, Notre Dame De Namur University presented him with the Community Spirit Award in honor of his work in promoting social justice through community engagement.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor Tom Teshara, a San Francisco native who has been responsible for mentoring and recruiting hundreds of women and men for admission to the United States Naval Academy. Starting in 1966 as a volunteer Tom personally recruited 82 young men who were accepted by the Academy during a 4-year period. In 1972 the Academy's Candidate Guidance Office established a West Coast branch office and named Tom as its first director with responsibility for ten Western states. At one time there were 1,049 Midshipmen enrolled at the Academy from these ten Western States. Before his recent retirement Tom led a network of 125 Academy Information Officers who counseled about 6,000 candidates annually. Tom Teshara's work involved many evenings and weekends where he represented the Academy at area school events. He founded the USNA Parents Club and coordinated all club activities. When midshipmen returned home for the holidays, it was Tom who arranged for new candidates and their parents to sit down and discuss the Academy experience with the midshipmen. It is commonly accepted that no other person in the country has recruited more candidates for the Naval Academy than Tom Teshara. Tom, born in 1927, was drafted out of high school by the U.S. Army where he served for 13 months before another draft of sorts--he signed a baseball contract with the San Francisco Seals where he played second base in the minor league system. His interest in sports has continued through the years. He founded the PeeWee Training League in the South San Francisco/San Bruno area and was athletic director at St. Veronica's School for nine years while playing semipro baseball. Tom Teshara and his wife, Jeannine, were married in October 1949. They have a son, Steve, and a daughter, Debra, and two granddaughters. Madam Speaker, Tom's family has every right to be proud of his efforts of the past 50 years to bring the best and the brightest young women and men into service for our country. He deserves a big salute from all of us.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor Pete McCloskey, a distinguished and charismatic former member of this house for 16 years, and a true American maverick who has been guided by a shining moral compass throughout his life. Former Congressman McCloskey pursues the truth no matter where it leads him. In his over eight decades, Pete has accomplished more than will fit on this page. In one of his most recent endeavors, he ran against a fellow Republican, Richard Pombo, in the primary election--at age 78. While most members of his age group are retired, McCloskey continues to practice as a trial lawyer, works on his farm raising citrus and olive trees and creates mischief with his group, ``Revolt of the Elders.'' He was a war hero in Korea and received a Navy Cross, a Silver Star and two Purple Heart for his service to this country. In Congress he served the people of the San Francisco Peninsula and Silicon Valley from 1967-1983. He was vehemently opposed to the Vietnam War and ran for President against Richard Nixon in 1972. The following year, he was the first member of Congress to ask for President Nixon's impeachment. Mr. McCloskey is a principal at Cotchett, Pitre and McCarthy and has an extensive civil rights and environmental record. He received his B.A. from Stanford University and his J. D. from Stanford Law School. Pete's environmental activism was ignited when Cuyahoga River in Ohio caught fire twice in 1969. Together with Gaylord Nelson, he co-chaired the first Earth Day in 1970. Three years later he coauthored the Endangered Species Act. Madam Speaker, Pete McCloskey fights for justice with the same passion today as he did forty years ago. He is a personal hero of mine and an icon to all of us who thirst for courageous leaders in our country. It is fitting that the Peninsula Coalition is presenting him with its Lifetime Achievement award on May 6 in Burlingame.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor Julie Switky upon her retirement as executive director of the Hillsborough Schools Foundation. When Julie joined the Foundation in 1982, parent participation was about 64 percent with $242,000 raised that particular year. The 2009- 2010 Annual Giving Campaign will surpass $3.1 million with parent participation close to 80 percent. These statistics speak volumes about the dedication and hard work of Julie Switky over the past 28 years. Amazingly she worked alone for the first decade until she was joined by Judy Kagan in the early 1990s. Today the Foundation has three additional staff members and a camaraderie that is off the charts-- another testament to Julie's inspirational leadership. She was raised in the Bronx, earned a degree in elementary education at City College of New York and later taught first grade in New York City and Baltimore. She and her husband, Dan, have lived in my district (San Mateo) for the past 30 years where they raised three children. In this electronic age I want to note that Julie started her remarkable career at the Foundation without any technological tools. She went on to develop a computer tracking program and most currently was working to provide the Foundation with the most up-to-date online technology possible. I'll be candid. Other school communities in California look to Julie Switky as the shining star of raising money to support education. No wonder that she is often asked to speak at other school foundation conferences. Funds raised by Julie and her team go directly to school budgets and that helps maintain the level of excellence at Hillsborough's four schools. Madam Speaker, I am pleased to honor the dedication and leadership of Julie Switky and I wish her the best in her newest endeavor, retirement.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor an outstanding leader and treasured friend Adrienne Tissier, a life-long resident of San Mateo County and a current member of the San Mateo County Board of Supervisors. Adrienne will be receiving a much deserved public service award from the Peninsula Coalition at its 6th Annual Honors dinner on May 6. She first assumed office in January 2005 after serving eight distinguished years as a councilmember in Daly City, including two terms as mayor. In four short years she has displayed keen leadership and consensus building skills that have benefited residents of the county. She created a nationally acclaimed, first of its kind program for the proper disposal of pharmaceuticals to prevent medication errors, drug abuses and environmental harm. She's developed outreach programs in which the California Highway Patrol works with older drivers. She created the annual countywide Disaster Preparedness Day and co-chairs the Blue Ribbon Task Force on Adult Health Care Expansion. She has been especially active in providing transportation and mobility options for senior citizens. She is the current vice-chair of the Metropolitan Transportation Commission and she serves on the SamTrans Board of Directors. She is also the board liaison to the state Commission on aging and the state Commission on the Status of Women. Supervisor Tissier was instrumental in planning the Women's Criminal Justice Summit and the Livable Communities for Successful Aging conference. She also set up a resources day in May of 2009 for residents concerned about the foreclosure crisis. Madam Speaker, I have been fortunate to work with Adrienne on countless issues during my career of public service. Without question, her dedication to her work has been remarkable and this award she is to receive is fitting thanks for all those late nights and trips to Sacramento that she incurred in the name of improving daily life in San Mateo County.

Ms. SPEIER

Ms. SPEIER. By being creative. This is what Goldman Sachs did, and it was really well-described in a book by Michael Lewis, called ``The Big Short,'' in which he writes: In the process, Goldman Sachs created a security so opaque and complex that it would remain forever misunderstood by investors and rating agencies--the synthetic subprime mortgage bond-backed CDOs, or collateralized debt obligations. He goes on to write: Triple B-rated bonds were harder to sell than triple A--no surprise--but there were huge sums of money to be made if you could somehow get them rerated as triple A, thereby lowering their perceived risk, however dishonestly or artificially. So what did they do? Goldman Sachs then went to the rating agency and said, Now, how is it that you rate these particular tranches? They found out. It was really a rating that went on by just looking at FICO scores. So the mortgages were not looked at based on whether they were no-doc loans or whether there was adequate income. They were rated based on a homeowner's mortgage FICO score. So if you could somehow bump up the FICO score on these mortgages, you could turn a BBB into a AAA. And that's what they did. So then they went out and they sold the Abacus one that we heard about last week where John Paulson said he wanted to short all of them; so he put together the worst of the worst, and then Goldman made $15 million for actually servicing that particular instrument. Then Goldman went out and sold garbage to an unsuspecting American public. Oh, but they were sophisticated buyers, so therefore they knew what they were getting into. And that's the creativity of Goldman Sachs.

Ms. SPEIER. As a side bet. As a side bet. So they stayed in this tower, but they took them out in a manner that allowed you to just bet for and against them, and as long as there was someone on the sell side and someone on the buy side, it was fine with Wall Street.

Ms. SPEIER. Tower of shame.

Ms. SPEIER. The interesting element of the subprime market was that those who were selling the product, the originators of the loans, weren't holding on to any of the instrument. They had no skin in the game. It was sold off to Wall Street, where they put them in these tranches and then sold them off again and again. One of the things that is required in this new bill is that you will have to have some skin in the game, that you will have to have reserves, that you cannot leverage, like we have seen happen over the last couple of years. But the interesting thing about the subprime market that just came to light, the industry also realized these people weren't equipped. If you were a $14,000 a year gardener in East L.A., you couldn't afford a $700,000 home. But since there was no documentation, since it was going to be sold, and after the teaser rate was no longer available to you, you were going to come back and refinance that loan again, so the fees to the originator, to the bank, would be generated again. So there was this huge churning that was going on in the industry as well.

Ms. SPEIER. But imagine to allow these kinds of complex instrumentalities to be in the marketplace and not be regulated. That's what will be regulated as we move forward with financial reform. There will be a protection agency for consumers that will help us understand, hopefully--as I understand it, a credit card statement form contract was 1 page and 700 words in 1985. Today it's something like 30 pages. The Consumer Financial Protection Bureau will provide greater assistance to Main Street.

Ms. SPEIER. No, we won't.

Ms. SPEIER. The interesting thing is the Consumer Financial Protection Agency, which now on the Senate side is being billed as a bureau within the Fed, was really the brainchild of Professor Elizabeth Warren from Harvard Law School. And she likened it to the Consumer Product Safety Commission, which we have. I mean you buy a toaster. It's warranted to operate, not to electrocute you. And yet we have nothing of the same nature to protect us as consumers from fraudulent techniques that are being used by credit card companies, by mortgage brokers. This one chart that showed this CDO, this was $38 million. It was actually sold and resold 30 times, 30 times, and created losses of over $280 million. Now, derivatives haven't been regulated in this country because Congress passed a law in 2000 prohibiting Congress from regulating derivatives. It was part of the financial services industry wish list, and none of us were there at the time.

Ms. SPEIER. I just want to show you one last chart. So this is the creativity of Goldman Sachs, creating these products, knowing they were bad, selling them off. And many of them were what are called synthetic CDOs. So they didn't actually have the mortgages on them. They were like a side bet on that tower we had seen in that earlier chart. But look at what happened to all of them. They were all, at one point or another, a percent of the tower that was, in fact, AAA--71 percent, 77 percent, 72 percent, 70 percent, 80 percent. But look what happened to them in the end. They all turned to junk. So they were rated improperly, so you can ding the rating agencies. They were manipulated by Goldman Sachs. And this is the kind of creativity on Wall Street that makes us proud.

Ms. SPEIER. Well, interestingly enough, Goldman had purchased credit default swaps from AIG, and, of course, they were repaid in full by the taxpayers of this country, $12 billion worth, the highest recipient of money from those CDS's.

Ms. SPEIER. These were the mortgages that were then packaged and then sold to investors because, of course, they were grade A, and they would make them a lot of money. What happened here is they took this one tranche, and then they brought it over here. Now they are B grade. So how do you take something that is a B grade and make it investment quality?

Ms. SPEIER. Well, this is what is kind of interesting about it. These are some of the Frankensteins that they were creating. Here is a tower, as they refer to it--the Soundview Home Loan Trust. If you look at the bottom there, at that little yellow tranche as they refer to it, there was, you know, some pretty bad stuff. These were mortgages that were poorly rated.

Ms. SPEIER. Thank you to my very good friend and colleague from California (Mr. Garamendi). You know, as you were talking about the shenanigans, what we heard last week from the Senate Permanent Subcommittee on Investigations was deeply troubling to all of us, and the chairman, Senator Levin, did an outstanding job in focusing in on what was really going on at Goldman Sachs. So we started last week here on our House floor looking at Goldman Sachs' principles that they have espoused and that are on their Web site. We started ticking off what some of their principles were and then what some of their emails from some of their employees suggested they were really up to. Tonight, I thought that we would just focus on one principle, at least for my part. One of their principles is: We stress creativity and imagination in everything we do. This is the top one up here. While recognizing that the old ways may still be the best way, we constantly strive to find a better solution to a client's problems. We pride ourselves on having pioneered many of the practices and techniques that have become standard in the industry. Now, an email from the vice president of Goldman Sachs, Fabrice Tourre, said: Standing in the middle of all of these complex, highly leveraged exotic trades he created without necessarily understanding all of the implications of those monstrosities, it's like a little Frankenstein turning against his own inventor. Mr. Tourre called his Frankenstein creation a product of pure intellectual masturbation--the type of thing which you invent telling yourself, Well, what if we created a thing which had no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?

Ms. SPEIER. One hundred and eighty billion dollars, yes.

Ms. SPEIER. And you know who bought a lot of Abacus, who was on the other side of the trade with Paulson who shorted them, so who was buying Abacus? You won't be surprised to hear AIG, will you?

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor Dr. Stan Rockman who after 35 years has this to say about his choice to practice public healthcare: ``I love providing high quality care to patients with few options.'' He asserts that the patient mix at the San Mateo Medical Center enables him to practice international medicine. Dr. Rockman is the Chief of Gastroenterology and was appointed to the San Mateo Medical Center in 1971. I have personally known him for 30 years and have witnessed his passion for healing. A favorite story of Dr. Rockman's involves the day his 16-year-old son paid him a visit at lunchtime. His son waited in the lobby where he observed a man in a hospital gown dragging himself down the hallway, posterior exposed, an IV still attached to his arm and two security guards in close pursuit--another futile attempt to escape from drug rehab. Dr. Rockman says his son was in awe that his father worked in a place like this on a daily basis. Madam Speaker, Dr. Stan Rockman is a true hero of healthcare in our county and state. The San Mateo Medical Foundation was right to honor his contributions at a special ceremony on April 30th.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor Dr. Mark Highman, a cardiologist who willingly chose the career path of public service medicine over the more lucrative road of private practice. I feel very fortunate to have known Dr. Highman for 30 years. Clearly, decades of patients at the center who lacked insurance or the money to pay for it appreciate his decision to practice at the San Mateo Medical Center. He was appointed Medical Director of the Special Care Unit, Vice Chief of Medicine and Chief of Cardiology to the center in 1977. Dr. Highman also is an Associate Clinical Professor of Medicine at Stanford University. The diversity of patients and their medical challenges prompted Dr. Highman to become certified in critical care. He considers treating the less fortunate to be, in his own words, ``richly rewarding'' and that speaks volumes to what this healer is all about. As a career-long medical musketeer he is the embodiment of the esprit de corps at the center. Madam Speaker, Dr. Mark Highman is a hero of healthcare to a generation of the less fortunate in our county and State. The San Mateo Medical Foundation is right to honor his contributions at a special ceremony on April 30th.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor the 100th Anniversary of the Town of Hillsborough in my district. In fact, I am a proud resident of this town. My children were raised here and they have benefited from an excellent public education system, particularly in the middle grades where, aside from mastering the basics, they confronted the challenges of malnutrition in Africa, homelessness in our own country and the importance of protecting the environment. The spirit of altruism that was instilled in them is one that permeates the entire community. We often talk about good citizenship, a sense of neighborhood and civic responsibility as if they were things in our past. I can attest that those values are alive and well in Hillsborough under the able leadership of Mayor Christine Krolik who states that 7,000 of the 11,000 total residents are registered to vote. And that 11,000 number includes children as well as adults, so a truly extraordinary number of voting-age adults are actively participating in our democracy. The people of Hillsborough have a real connection to their town. The public schools are a source of shining pride to the entire community, and indeed diplomas my children earned at Hillsborough public schools have a place of distinction in our home. The dedicated public servants of the Police, Fire, Public Works and Administration Departments are among the very best in our great state of California. The town cares deeply about their natural resources, and Hillsborough has set a very high standard for preservation of public space and preservation of natural beauty. Indeed, on the occasion of the 100th anniversary, the town will dedicate a new Centennial Park, which will be donated by the Hillsborough Beautification Foundation, which privately raised all of the funds for this wonderful community treasure. The town of Hillsborough has a rich tapestry of history. Hillsborough has hosted Theodore Roosevelt for a Presidential visit, as well as Jimmy Carter, Bill Clinton and George W. Bush. Residents of Hillsborough have included such notable citizens as Bing Crosby, William Randolph Hearst, William Crocker and Rickey Henderson. There will be a Memorial Day Parade of the Century planned for May 31. There is much to celebrate in the past 100 years in Hillsborough, and I join my many friends and neighbors there in recognizing the 100th Anniversary of Hillsborough. Madam Speaker, please join me in celebrating this great occasion for this great town.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor Dr. James Meier, a dedicated physician in my district who has devoted his career to providing quality care to a generation of the poor and less fortunate in San Mateo County. I have had the pleasure of knowing Dr. Meier for 30 years and have witnessed his passion and dedication to his work. Dr. Meier took a three-month temporary assignment at the San Mateo Medical Center and stretched it to more than 40 years and counting. He has worked through the lean years when the county board of supervisors nearly voted to close the hospital. Those votes spurred an effort to raise community awareness of the Center's services. Dr. Meier played a lead role in forming the San Mateo Medical Center Foundation which has helped garner the needed public support to keep the hospital functioning as a provider of high quality medical care. Dr. Meier's reason for coming to work each day is captured in his positive attitude. He heaps praise on the other doctors, nurses and support staff who combine to make the center a wonderful place to practice medicine. Madam Speaker, the San Mateo Medical Foundation is right to honor Dr. Meier's contributions in a special ceremony on April 30th. He is without question a hero of healthcare in the county and State.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor Dr. Harvey Kaplan who proudly states that he has spent his entire career as a pediatrician. I have been friends with Dr. Kaplan for three decades and have witnessed his passion for those entering the world. Dr. Kaplan was appointed to the San Mateo Medical Center in 1969. He also is a Clinical Professor of Pediatrics at Stanford University School of Medicine and a member of the Community Clinical Faculty of Lucile Packard Children's Hospital. In the 1970s he took a special interest in treating children who might be victims of abuse. He says he thought of himself as a pioneer in those days as he helped the center develop an interdisciplinary approach to treatment. He eventually assisted in the establishment of the Children's SAFE Center which was on the cutting edge of detecting and treating child sex abuse. He is now a member of the San Mateo County Pediatric Death Review Team. Although Dr. Kaplan admits to having a few bouts with the lure of private practice, he says those moments passed, replaced by the satisfaction of providing pediatric care to families that normally wouldn't have access to an array of services. Clearly, this Brooklyn native has been California's gain. Madam Speaker, the San Mateo Medical Foundation is right to honor the contributions of Dr. Kaplan at a special ceremony on April 30. He has truly been a hero of healthcare for our county and State.

Ms. SPEIER

Ms. SPEIER. Madam Speaker, I rise to honor the 20th anniversary of the Daly City Youth Health Center, a health and youth development program linked to the Jefferson Union High School District. Since its inception this facility has served over 37,000 youth and currently provides services to more than 600 teens each month. Clearly, we are a better community because of the dedication, caring and expertise of the center's staff. The center, a satellite office of the San Mateo Medical Center, offers primary medical care, reproductive health care, mental health counseling, sexuality education, case management of pregnant teens, vocational guidance and life skills training. This center has been highly effective in helping girls and boys from low-income backgrounds where individual needs require a multi-service response. I would like to point out that over 5,000 teens seek medical services from the clinic during the year and that most of the care revolves around reproductive health. These services are free although staff will work with these young people in terms of helping them apply for health insurance. The center has been hailed for its development of programs covering mental health counseling, teen pregnancy prevention, peer leadership and the always challenging transition from school to a career. We would all do well to adhere to the center's mission to increase resiliency, encourage responsibility and promote self-determination among youth and young adults. Madam Speaker, while this body has engaged in long and spirited debate on the issue of health care, it is important that we recognize and honor a 20-year-old program that has enriched thousands of young people in my district.