Rashida Tlaib Yells at Fed Chair Powell: You Don’t Think that Making Money Is a Bad Thing?

Tlaib Do you agree ░░░░░░░░ the April Federal Reserve ░░░░░░░░ that compensation incentives contributed ░░░░░░░░ Silicon Valley s Bank ░░░░░░░░ Powell I m sorry ░░░░░░░░ I Tlaib So the ░░░░░░░░ Federal Reserve report has ░░░░░░░░ that compensation incentives contributed ░░░░░░░░ the Silicon Valley Bank ░░░░░░░░ failure Do you agree ░░░░░░░░ that Powell I would ░░░░░░░░ it s at best ░░░░░░░░ tertiary factor but it ░░░░░░░░ had something to do ░░░░░░░░ it For me not ░░░░░░░░ main Tlaib So that ░░░░░░░░ no Powell That s ░░░░░░░░ small Tlaib OK so ░░░░░░░░ did OK So do ░░░░░░░░ agree the appropriate rules ░░░░░░░░ incentive compensation could have ░░░░░░░░ the likelihood of Silicon ░░░░░░░░ s failure maybe you ░░░░░░░░ if they didn t ░░░░░░░░ all that money Powell ░░░░░░░░ really don t think ░░░░░░░░ I mean I don ░░░░░░░░ think it s a ░░░░░░░░ So if they didn ░░░░░░░░ take all that money ░░░░░░░░ I I don t ░░░░░░░░ it s a first ░░░░░░░░ question for Silicon Valley ░░░░░░░░ lot went wrong there ░░░░░░░░ Yeah Powell Incentive comp ░░░░░░░░ be Tlaib They actually ░░░░░░░░ you guys Powell Sorry ░░░░░░░░ They blame they blame ░░░░░░░░ blame the oversight even ░░░░░░░░ they didn t respond ░░░░░░░░ your correspondent says Powell ░░░░░░░░ s part of it ░░░░░░░░ took our medicine Tlaib ░░░░░░░░ Do you think it ░░░░░░░░ has something to do ░░░░░░░░ the fact that section ░░░░░░░░ of the Dodd Frank ░░░░░░░░ hasn t been finalized ░░░░░░░░ you Powell No I ░░░░░░░░ t Tlaib You don ░░░░░░░░ think it s the ░░░░░░░░ Powell I don t ░░░░░░░░ You don t think ░░░░░░░░ s because people made ░░░░░░░░ off of the failure ░░░░░░░░ I think nothing Tlaib ░░░░░░░░ don t think money ░░░░░░░░ them to do what ░░░░░░░░ did Powell I I ░░░░░░░░ t say that What ░░░░░░░░ said you know there ░░░░░░░░ there are lots of ░░░░░░░░ So they made money ░░░░░░░░ it They they actually ░░░░░░░░ was a lottery for ░░░░░░░░ right Powell I do ░░░░░░░░ think that incentive compensation ░░░░░░░░ were at the heart ░░░░░░░░ the Silicon Valley Bank ░░░░░░░░ No Tlaib OK Do ░░░░░░░░ support a robust rulemaking ░░░░░░░░ executive compensation chairman Powell ░░░░░░░░ I know that the ░░░░░░░░ know that the Tlaib ░░░░░░░░ you don t Powell ░░░░░░░░ m sorry Tlaib I ░░░░░░░░ just do you support ░░░░░░░░ rulemaking for executive compensation ░░░░░░░░ you do you believe ░░░░░░░░ Section 956 Powell Section ░░░░░░░░ is the law As ░░░░░░░░ understand it the agencies ░░░░░░░░ looking at doing something ░░░░░░░░ s been 12 or ░░░░░░░░ years right crosstalk Tlaib ░░░░░░░░ Multiple agencies Yeah Powell ░░░░░░░░ s been hard to ░░░░░░░░ it done I lived ░░░░░░░░ the last episodes of ░░░░░░░░ to get it done ░░░░░░░░ Yeah So so do ░░░░░░░░ believe in a robust ░░░░░░░░ process for executive compensation ░░░░░░░░ I do I do ░░░░░░░░ Tlaib Oh great Oh ░░░░░░░░ s awesome Will you ░░░░░░░░ will you commit to ░░░░░░░░ finalize the Dodd Frank ░░░░░░░░ 956 this year Powell ░░░░░░░░ I wouldn t say ░░░░░░░░ Tlaib It s been ░░░░░░░░ years chairman Powell Yeah ░░░░░░░░ know I don t ░░░░░░░░ Tlaib You played a ░░░░░░░░ in the bank failure ░░░░░░░░ Powell If I can ░░░░░░░░ I what I would ░░░░░░░░ to do is understand ░░░░░░░░ So you don t ░░░░░░░░ to do it this ░░░░░░░░ I mean I m ░░░░░░░░ serious what what you ░░░░░░░░ saying no CHAIRMAN If ░░░░░░░░ member will allow the ░░░░░░░░ to answer the question ░░░░░░░░ ve had a good ░░░░░░░░ today And the gentleman ░░░░░░░░ trying to answer the ░░░░░░░░ Powell I would like ░░░░░░░░ understand the problem we ░░░░░░░░ solving and then I ░░░░░░░░ like to see a ░░░░░░░░ proposal that addresses that ░░░░░░░░ Tlaib OK Do you ░░░░░░░░ people should profit off ░░░░░░░░ bank failure The executives ░░░░░░░░ made those decisions Powell ░░░░░░░░ Not not not the ░░░░░░░░ Tlaib They should not ░░░░░░░░ Powell Well I I ░░░░░░░░ say executives who are ░░░░░░░░ for a failed bank ░░░░░░░░ should not profit from ░░░░░░░░ failure Absolutely not Tlaib ░░░░░░░░ they get to walk ░░░░░░░░ with compensation based on ░░░░░░░░ failure Powell You re ░░░░░░░░ Tlaib It s true ░░░░░░░░ happened Powell are you ░░░░░░░░ about a a a ░░░░░░░░ rule that would have ░░░░░░░░ and things like that ░░░░░░░░ Yeah Powell Yeah So ░░░░░░░░ that s that s ░░░░░░░░ I know you ve ░░░░░░░░ looking at for for ░░░░░░░░ while Tlaib Yeah Powell ░░░░░░░░ s that s certainly ░░░░░░░░ appropriate thing to look ░░░░░░░░ Tlaib Yeah because it ░░░░░░░░ just going to continue ░░░░░░░░ happen is my opinion ░░░░░░░░ doesn t have to ░░░░░░░░ yours But it sure ░░░░░░░░ the heck could have ░░░░░░░░ here if they knew ░░░░░░░░ were going to they ░░░░░░░░ going to walk away ░░░░░░░░ they could walk away ░░░░░░░░ not the bonuses the ░░░░░░░░ I mean they made ░░░░░░░░ significant amount of money ░░░░░░░░ their bank failure.”