Opening Statements of Committee Members


Opening Statement of Senator Jim Bunning (R-KY)
Senate Banking Committee Hearing
Securities Markets Structure
April 13, 2000


MR. CHAIRMAN, I WOULD LIKE TO THANK THE CHAIRMAN OF THE FEDERAL RESERVE, ALAN GREENSPAN, FOR TESTIFYING TODAY.

I AM VERY INTERESTED IN HEARING THE CHAIRMAN'S COMMENTS ON THE STRUCTURE OF SECURITIES MARKETS IN THIS NEW CENTURY. I LOOK FORWARD TO HEARING HIS COMMENTS ON THE CENTRAL LIMIT ORDER BOOK OR CLOB. I ALSO WOULD LIKE TO KNOW HIS VIEWS ON MARKET FRAGMENTATION. OBVIOUSLY, OUR SECURITIES MARKETS HAVE CHANGED A GREAT DEAL OVER THE LAST FEW YEARS AND WILL HAVE TO CONTINUE TO ADAPT TO THE NEW INFORMATION AGE WE ARE LIVING IN ORDER TO COMPETE GLOBALLY.

I ALSO WOULD LIKE TO HEAR FROM THE CHAIRMAN ABOUT THE RECENT LOSSES IN THE SECURITIES MARKETS. SPECIFICALLY, I WOULD LIKE TO KNOW IF HE BELIEVES THESE LOSSES HAVE CHANGED HIS VIEWS ABOUT THE "WEALTH EFFECT". I WOULD LIKE TO KNOW IF THESE LOSSES HAVE HIM CONCERNED ABOUT THE OVERALL STATE OF OUR ECONOMY. AND I WOULD LIKE TO KNOW IF THESE LOSSES WILL AFFECT THE FED'S MONETARY POLICIES.

FINALLY, I AM CONCERNED THAT THE FED'S ECONOMIC MODELS ARE NOT UP TO DATE. I DO NOT BELIEVE THEY FACTOR IN THE HUGE WORKER PRODUCTIVITY WE HAVE EXPERIENCED. I WILL ASK SOME QUESTIONS ON THE FED'S MODELS, AND I LOOK FORWARD TO HEARING THE CHAIRMAN'S ANSWERS.

I FEAR THAT THE CONTINUED RAISING OF RATES BY THE FED COULD LEAD TO A RECESSION. I DO NOT THINK THE CHAIRMAN WANTS A RECESSION ON HIS WATCH, AND I KNOW I DON'T WANT ONE ON MINE.

THANK YOU MR. CHAIRMAN.