Deutsche Bank

From:dschwerin@hillaryclinton.com To: jpalmieri@hillaryclinton.com, john.podesta@gmail.com, jsullivan@hillaryclinton.com, bfallon@hillaryclinton.com, gruncom@aol.com Date: 2015-11-20 18:03 Subject: Deutsche Bank

Following up on the conversation this morning about needing more arrows in our quiver on Wall Street, I wanted to float one idea. In October 2014, HRC did a paid speech in NYC for Deutsche Bank. I wrote her a long riff about economic fairness and how the financial industry has lost its way, precisely for the purpose of having something we could show people if ever asked what she was saying behind closed doors for two years to all those fat cats. It's definitely not as tough or pointed as we would write it now, but it's much more than most people would assume she was saying in paid speeches. (Full transcript is attached and key riff is pasted below.) Perhaps at some point there will be value in sharing this with a reporter and getting a story written. Upside would be that when people say she's too close to Wall Street and has taken too much money from bankers, we can point to evidence that she wasn't afraid to speak truth to power. Downside would be that we could then be pushed to release transcripts from all her paid speeches, which would be less helpful (although probably not disastrous). In the end, I'm not sure this is worth doing, but wanted to flag it so you know it's out there. *Deutsche Bank AG* *Secretary Hillary Rodham Clinton* *New York, NY* *Tuesday, October 07, 2014* ...Now, Jacques was talking about Eleanor Roosevelt, and I hope a lot of you have seen the extraordinary Ken Burns documentary series on PBS about the Roosevelts. It's just riveting. And you should see it if you haven't, because it tells stories and shows pictures that have never been seen before of Teddy Roosevelt and Franklin Roosevelt and Eleanor Roosevelt. But Eleanor Roosevelt in particular is someone that I admire as one of my predecessors, and I adore the book that Jacque's mother-in-law has written about the relationship that she and her late husband, who was Eleanor's personal physician, had with Eleanor Roosevelt. And you look at the documentary and you really are struck once again how every generation has to do what it can to make sure that economic opportunity is broadly shared and upward mobility remains at the core of the American dream and experience. I mean, Teddy Roosevelt said it well. His commonsense slogan, the square deal, captured the American imagination and still resonates today. Just think about the changes that were going on at the turn of the last century: technological transformation, growing economic inequality, the steady accumulation of vast power and wealth in the hands of a select few. Roosevelt was a Republican from the party of big business, but he resisted both the elites who sought to protect their gilded age advantages and the rising tide of populist anger that threatened to sweep the nation. Instead, he stood up for the level playing field, no special deals, just a fair shot for everybody willing to get out there and work hard. I think that's a message worth recalling today when so many hardworking American families, and I add European families feel like they're falling further and further behind, while they see, in their view, the playing field becoming more unlevel, and feeling as though it doesn't matter how hard they work because the game is rigged against them. Now, to me this is not just about fairness, although I think that's an important principle. We now know, based on research done by the IMF and others, that income inequality holds back growth for the entire economy. There is no more important driver of growth around the world than the purchasing power of American consumers. That is once again becoming clear as we move forward more dynamically than a lot of our friends and allies are economically. Stagnating wages translate into fewer customers, and that's not a new insight. Just ask Henry Ford who first articulated it. And it's no surprise that many Americans feel frustrated, some even angry, as you probably see in news coverage. And a lot of that anger has been directed at the financial industry. Now, it's important to recognize the vital role that the financial markets play in our economy and that so many of you are contributing to. To function effectively those markets and the men and women who shape them have to command trust and confidence, because we all rely on the market's transparency and integrity. So even if it may not be 100 percent true, if the perception is that somehow the game is rigged, that should be a problem for all of us, and we have to be willing to make that absolutely clear. And if there are issues, if there's wrongdoing, people have to be held accountable and we have to try to deter future bad behavior, because the public trust is at the core of both a free market economy and a democracy. So it is in everyone's interest, most of all those of you who play such a vital role in the global economy, to make sure that we maintain and where necessary rebuild trust that goes beyond correcting specific instances of abuse of fraud. Last year, the head of the Chicago Mercantile Exchange, Terry Duffy, published an op-ed in the *Wall Street Journal* that caught my attention. He wrote, and I quote, "I'm concerned that those of us in financial services have forgotten who we serve, and that the public knows it. Some Wall Streeters can too easily slip into regarding their work as a kind of moneymaking game divorced from the concerns of Main Street." We heard a similar point from a more global perspective this spring at a conference in London on inclusive capitalism organized by my friend, Lynn Rothschild, who's here with us tonight. Mark Carney, the Governor of the Bank of England, offered what we in America might call straight talk about how the financial industry has lost its way and how to earn back public confidence. And I think his words are worth both quoting and thinking about. Here's what he said. "The answer starts from recognizing that financial capitalism is not an end in itself, but a means to promote investment, innovation, growth and prosperity. Banking is fundamentally about intermediation, connecting borrowers and savers in the real economy. In the run-up to the crisis, banking became about banks not businesses, transactions not relations, counterparties not clients." And then Mark Carney went on to outline proposals for stronger oversight, both within the industry and by government authorities, but he noted "Integrity can neither be bought nor regulated. Even with the best possible framework of codes, principles, compensation schemes and market discipline, financiers must constantly challenge themselves to the standard they uphold." So this is a time when for all kinds of reasons trust in government, trust in business has eroded. And I believe that it has to be rebuilt, not only by those in offices in Washington or Albany but by so many of you. Over the years, I've had the privilege of working with many talented, principled, smart people who make their living in finance, especially when I was Senator from New York. Many of you here were my constituents, and I worked hard to represent you well. And I saw every day how important a well-functioning financial system is to not only the American economy but the global economy. That's why as Senator I raised early warnings about the subprime mortgage market and called for regulating derivatives and other complex financial products because even among my smartest supporters and constituents I never understood what they were telling me when they tried to explain what they were. I also called for closing the carried interest loophole, addressing skyrocketing CEO pay and other issues that were undermining that all important link between Wall Street and Main Street. Remember what Teddy Roosevelt did. Yes, he took on what he saw as the excesses in the economy, but he also stood against the excesses in politics. He didn't want to unleash a lot of nationalist, populistic reaction. He wanted to try to figure out how to get back into that balance that has served America so well over our entire nationhood. Today, there's more that can and should be done that really has to come from the industry itself, and how we can strengthen our economy, create more jobs at a time where that's increasingly challenging, to get back to Teddy Roosevelt's square deal. And I really believe that our country and all of you are up to that job...