TAPPER: Right. And if I could interject for one second, Mr. Tourre thought that it was going to go down, as well. And, in fact, there's a memo -- apparently -- and there was this memo from him, sent in 2007, saying, "More and more leverage in the system. The whole building is about to collapse any time now. Only potential survivor, the Fabulous Fab," referring to himself, standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all the implications of these monstrosities. So he, it looks like, knew this was going to fail.
HUNT: This stuff is surreal. And these -- this is the derivative issue that is at the center, I think more than anything else, of this -- of this bill up there.
And the question is not do you outlaw things. The question is transparency and do you clear them on clearing -- trading organs. And I think that becomes very difficult for most of the public to understand, but what the public does understand was what happened before was a bunch of rip-offs.
BRAZILE: But you know what the public will always understand, is that they were misled and that Goldman misled some of the investors. And, you know, while they're pushing these exotic instruments, they're also betting against these instruments. So you have a lot of unhappy investors.
Look, Congress -- Wall Street is as popular as a root canal. And I think the Democrats can go out there and fight for transparency, accountability, and they can win this debate and pass this bill. And if the Republicans decide once again to delay and to put up more tactics to cherry-pick through the bill like health care, they will find themselves on the wrong side of history.
WILL: Republicans have to articulate, which they have not yet done, that their position is more fierce against Wall Street than the existing one is. What they're saying is that there's still enough discretion that will be used to bail out creditors and shareholders of these firms, and the Republicans really want to guarantee their ruin, as I understand it.
STRASSEL: Just, I mean, on this Goldman thing, talk about marketing, by the way. I mean, this is now being put forward by Democrats as a reason to pass this.
The fact that the SEC has a civil complaint against this, their argument is that this is about misrepresentation of marketing a security, a law that has been on the books forever, and the SEC unrooted this, and they have a complaint out there. No one has made an argument as to why this legislation in particular would make this any less likely. This is -- they're arguing a fraud and one that they uncovered with the tools that they have now.
TAPPER: So the bill wouldn't necessarily prevent this from happening? It already is against the law?
STRASSEL: It isn't clear how this would make it any different.
BRAZILE: Well, tell that to the Royal Bank of Scotland. Tell that to all of the foreign banks and the domestic banks that went out there and invested in these exotic instruments that somehow or another this was OK. Now, this is going to...
TAPPER: ... because she's saying it was against the law.
BRAZILE: It was against the law...
TAPPER: And this bill wouldn't necessarily address it, but...