OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

On Talks of Automotive Industry Recovery Plan on Bloomberg
December 9, 2008

... REPUBLICANS I HAVE SPOKEN TO, THEY ARE MODERATES AND THEY SAY THERE ARE THINGS THAT THEY DO NOT LIKE. THEY MAY SUPPORT THIS BUT THEY ARE NOT THERE JUST YET. >> THAT WAS THE LATEST STATEMENT ON THIS. FOR MORE ON THIS, I SPOKE TO STENY HOYER. HE REMAINS OPTIMISTIC THAT THERE WILL BE A DEAL, BUT HE SAYS THE ALTERNATIVE IS UNACCEPTABLE. >> THE COLLAPSE WOULD BE VERY SHOCKING, AND THIS WOULD BE UNACCEPTABLE TO THE PRESENT THE ECONOMY. WE'VE LOST A HALF MILLION JOBS IN THE LAST MONTH, AND THIS WOULD POSE THE RISK OF 2 MILLION JOBS BEING LOST, IN THE SHORT TERM. THIS WOULD BE A TREMENDOUS SHOCK TO THE ECONOMY, WHICH WE CANNOT ALLOW TO HAPPEN. >> WHAT DO YOU THINK ABOUT THIS? DO YOU THINK THAT THERE WILL BE FINANCIAL LIFE THAT WILL BE GIVEN TO THESE COMPANIES THROUGH THE END OF THIS YEAR AND INTO THE NEXT. >> I AM HOPEFUL THAT THIS WILL BE THE CASE. I BELIEVE THAT THE WHITE HOUSE AND THE HOUSE AND SENATE, AND THE MAJORITY OF THE MEMBERS BELIEVE THAT WE HAVE TO DO SOMETHING TO MAKE SURE THAT THE AUTO COMPANIES DO NOT GO BAIL -- DO NOT GO BELLY UP. THIS WOULD NOT BE GOOD FOR THE ECONOMY. THIS WOULD BE A TERRIBLE SHOCK, RESULTING IN THE LOSS OF A SUBSTANTIAL NUMBER OF JOBS. NOBODY KNOWS THE EXACT NUMBER, BUT PERHAPS MORE THAN THIS. THEREFORE, I BELIEVE THAT WE CAN CREATE A CONSENSUS, IF THE WHITE HOUSE AND THE SENATE LEADERSHIP AND THE HOUSE LEADERSHIP AGREE, I THINK THAT WE CAN PASS THIS BY THE END OF THE WEEK. >> YOU ARE SATISFIED THAT THE CONDITIONS THAT HAVE BEEN PUT IN PLACE THAT WE ARE SEEING TODAY, THAT THESE ARE TOUGH ENOUGH TO PROTECT THE TAXPAYERS AND ENFORCE THAT KIND OF CHANGES THAT YOU AND OTHER LAWMAKERS HAVE BEEN TALKING ABOUT? >> THAT IS THE OBJECTIVE, AND I BELIEVE THAT WE ARE MOVING TO THE END OF THIS. THE AUTO COMPANIES, IT SAYS TO THE UNIONS AND THE CREDITORS, AND THE DEALERS, THINGS ARE VERY TOUGH RIGHT NOW, BUT WE WILL GET YOU SOME HELP. BUT FRANKLY, YOU WILL HAVE TO PUT YOUR SKIN ON THE TABLE AS WELL IN ORDER TO HELP THIS INDUSTRY SURVIVE. IF YOU DO NOT DO THIS, WE WILL NOT CONTINUE TO DO THIS, AND IF WE DO NOT HAVE A PLAN THAT WE THINK IS CREATING A VIABLE COMPANY, THEN I THINK THE CONGRESS WILL BE RELUCTANT TO DO ANYTHING FURTHER. WE ARE HOPING THAT FOR ALL OF THE PARTIES INVOLVED, THEY UNDERSTAND THE POLITICAL NATURE OF THIS, AND THEY WILL MAKE THEIR CONTRIBUTIONS, IN SOME WAYS THIS WILL BE SUBSTANTIAL, TO MAKE SURE THAT THE AUTOMOBILE INDUSTRY IS VIABLE, AND THEY WILL CONTINUE FOR MANY YEARS TO COME. >> THERE HAS BEEN A DEBATE ABOUT HOW FAR CONGRESS SHOULD GO, FOR THE EXECUTIVE OFFICES. DO YOU HAVE A PERSONAL VIEW ABOUT WHETHER OR NOT -- WAGNER -- ROCK WAGNER SHOULD -- RICK WAGONER SHOULD LEAVE GM? >> THE ROLE OF THE CONGRESS IS NOT TO MANAGE THE COMPANIES, THE ROLE OF THE CONGRESS IS TO TELL THEM WHAT THEY WILL HAVE TO DO IF THEY WANT THE PARTICIPATION OF THE AMERICAN TAXPAYER. THEY CANNOT SPEND MONEY IN WAYS THAT WE THINK ARE WASTEFUL, TO PAY THE DIVIDENDS AND THE LARGE SALARIES, AND THE LARGE GOLDEN PARACHUTES, THEY WILL HAVE TO MAKE CERTAIN THAT THEY ARE SPENDING THIS MONEY ON STABILIZING THEIR COMPANIES, AND MAKING THEM LIABLE. THE BOARD OF DIRECTORS WILL HAVE TO MAKE DETERMINATIONS ABOUT WHAT LEADERSHIP CAN BEST DO THIS. >> WHAT ABOUT THE OVERSIGHT AUTHORITY THAT IS BEING SET UP, PEOPLE ARE WAITING TO FIND OUT WHO THIS PERSON IS. TO WHAT EXTENT IS THIS PERSON GOING TO BE SOMEBODY THAT THE NEXT PRESIDENT IS GOING TO BE SATISFIED WITH? WILL HE HAVE SOME SAY IN WHO THIS PERSON WILL BE? >> THERE WILL BE SOME DISCUSSIONS, BUT THE LEGISLATION -- THEY WILL SERVE AT THE PLEASURE OF THE PRESIDENT. THIS IS NOT AN APPOINTMENT THAT WILL LOCK IN THE NEXT PRESIDENT, PRESIDENT OBAMA AND HIS ADMINISTRATION. I WOULD HOPE THAT THERE ARE CONVERSATIONS BETWEEN THE BUSH ADMINISTRATION AND PRESIDENT- ELECT OBAMA, FOR SOMEBODY THAT PERHAPS THEY CAN AGREE WITH, OR SOMEBODY THAT WILL BE IN ACCEPTABLE TO THE NEXT PRESIDENT. SO THAT WE HAVE SOME DEGREE OF CONTINUITY. THEY WILL NOT 1 BARACK OBAMA, THE NEXT PRESIDENT, TO BE LOCKED INTO THIS APPOINTEE. >> THERE IS THE QUESTION ABOUT ...