OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

On Progress of Financial Recovery Package on Power Lunch
September 26, 2008

... HOLD AT THIS HOUR WITH ALL EYES IN WASHINGTON. THAT'S WHERE THE BALL IS IN THE COURT AT THE MOMENT ON THE DISCUSSIONS THAT ARE GOING ON RIGHT NOW ABOUT THE BAILOUT PACKAGE AND WHAT FORM IT WILL TAKE AND JOINING US NOW FIRST ON CNBC WE'RE VERY PLEASED TO WELCOME HOUSE MAJORITY LEADER STENY HOYER TO ""POWER LUNCH."" THANK YOU VERY MUCH FOR YOUR TIME, SIR. >> GOOD TO BE WITH YOU, THANK YOU VERY MUCH. >> REPRESENTATIVE HOUR, A QUICK QUESTION. SENIOR DEMOCRATIC LEADERSHIP SAYING THERE WAS A FRAMEWORK FOR A DEAL, A DEAL WOULD GET DONE AND 24 HOURS LATER STILL NOTHING. ARE YOU STILL CONVINCED SOMETHING S GOING TO HAPPEN AND WHEN? >> FIRST OF ALL, I THINK IT WAS ACCURATE YESTERDAY THAT THERE WAS A DEAL, AN AGREEMENT ON THE TABLE THAT WAS AGREED TO BY -- IN PRINCIPLE BY MOST OF THE PLAYERS. TOWARDS THE END OF THE DAY THE HOUSE REPUBLICANS INDICATED NO THEY WERE NOT IN AGREEMENT AND THEY TOLD THE PRESIDENT THAT AND THEY TOLD SECRETARY PAULSON THAT AND AS A RESULT WE ARE CONTINUING TO WORK TO TRY TO GET AN AGREEMENT. THE FACT IS AS WE SEE IT THERE'S A CRISIS. THAT CRISIS IS FOCUSED ON WALL STREET BUT ITS IMPACT WILL BE THROUGHOUT THIS COUNTRY ON MAIN STREET AND EVERY WORKING AMERICAN WILL BE ADVERSELY IMPACTED IF THE ECONOMY CONTINUES TO TANK SO OUR EFFORTS ARE TOWARDS REACHING AN AGREEMENT THAT WE CAN STABILIZE THE ECONOMY AND MAKE SURE THAT WE DON'T GO DEEP NEAR RECESSION OR EVEN INTO DEPRESSION, SO THAT'S WHAT WE'RE DOING. WE'RE CONTINUING TO WORK AND CONTINUE TO BE OPTIMISTIC THAT WE CAN HOPEFULLY BY THE END OF THE WEEKEND REACH AGREEMENT ON SOMETHING THAT CAN PASS AND BE SIGNED BY THE PRESIDENT. >> I GUESS WHAT WE'RE TRYING TO DO, SIR, IS GAUGE HOW FAR APART YOU FOLKS ARE WITH THE $700 BILLION PACKAGE. HOW FAR YOU ARE AWAY FROM HOUSE GOP LEADERS. I HAVE IN FRONT OF ME, SIR, A LETTER YOU'VE SEEN FROM JOHN BOEHNER, YOUR COUNTERPART ON THE REPUBLICAN SIDE OF THE HOUSE THERE, HIS LETTER TO SPEAKER PELOSI ITEMIZING THOSE THINGS THAT THE GOP HOUSE MEMBERS WOULD LIKE TO SEE IN THE PACKAGE, AND ONE THING STICKS OUT. THEY DON'T WANT ANY TAXPAYER MONEY TO BE INJECTED INTO THE FINANCIAL MARKETS AS PART OF THIS BILL. THEY WANT PRIVATE CAPITAL. THEY WANT TAX BREAKS FOR COMPANIES TO BE ABLE TO USE THEIR OWN CAPITAL TO SHORE UP THEIR BALANCE SHEETS. IS THAT A NON-STARTER FOR YOU, OR COULD THAT BE ON THE TABLE EVEN FOR DEMOCRATS? >> LOOK, LET ME SAY THIS AND MAKE IT VERY CLEAR. THIS IS THE PRESIDENT'S PROPOSAL. THE PRESIDENT IS OF JOHN BOEHNER'S PARTY. SECRETARY PAULSON MADE THIS PROPOSAL. ON THURSDAY NIGHT HE MET WITH ALL OF US INCLUDING JOHN BOEHNER. A AT THAT MEETING JOHN BOEHNER EXPRESSED ENTHUSIASM AND COMMITMENT TO ACCOMPLISHING THE OBJECTIVE. I PRESUME HE'S STILL THERE. THE DETAILS YOU JUST REFERENCED IN THIS LETTER, I PRESUME THIS IS A LETTER OF TODAY. >> YES. >> THAT MEANS THAT SEVEN DAYS OF VERY, VERY INTENSE WORK HAVE GONE ON AND IT IS ONLY TODAY THAT MR. BOEHNER IS PUTTING THOSE ON THE TABLE. I THINK THAT'S UNFORTUNATE. IF WE'RE IN CRISIS THOSE PRINCIPLES SHOULD HAVE COME UP SIX DAYS AGO. HAVING SAID THAT WE HAVE INDICATED TO THE PRESIDENT, TO SECOND PAULSON THAT WE ARE PREPARED TO WORK TOGETHER. WE BELIEVE THE CRISIS IS REAL. WE BELIEVE THE CONSEQUENCES ARE VERY NEGATIVE TO AVERAGE WORKING PEOPLE IN THIS COUNTRY AND WE THEREFORE BELIEVE THAT WE NEED TO WORK TO RESOLVE THIS AND PASS LEGISLATION TO STABILIZE OUR ECONOMY. I DON'T THINK IT'S PARTICULARLY HELPFUL JUST ON THE BRINK OF WHEN THE SENATE REPUBLICANS, THE SENATE DEMOCRATS AND THE HOUSE DEMOCRATS AND THE PRESIDENT OF THE UNITED STATES AND SECOND PAULSON ALL WERE REACHING TOWARDS CONSENSUS THAT AT LAST MINUTE THIS IS PUT ON THE TABLE. HAVING SAID THAT, THERE'S NOT AN OPTION. WE'RE GOING TO MOVE FORWARD AND WE'RE GOING TO WORK HARD AND I'M HOPEFUL BY THE END OF THE WEEKEND WE CAN HAVE SOME SUCCESS. >> I DIDN'T MEAN TO PRESS IT TOO HARD BECAUSE I REALIZE THESE NEGOTIATIONS ARE VERY TENUOUS AT THE MOMENT BUT IT'S CLEAR THAT THIS BILL CANNOT PASS WITHOUT DEMOCRATS. THIS IS THE PRESIDENT'S PACKAGE AND THE TREASURY PACKAGE BUT IT DOESN'T PASS WITHOUT YOU FOLKS AND WOULD YOU BE WILLING TO EVEN DISCUSS WITH THE HOUSE GOP THE IDEA THAT IT'S NOT TAXPAYER MONEY BUT PRIVATE CAPITAL THAT IS USED IN THIS PACKAGE. >> LOOK, WE'RE WILLING TO DISCUSS ALL OPTIONS AND HAVE BEEN FOR THE LAST SIX OR SEVEN DAYS. >> VERY GOOD. >> LET ME SAY THOUGH THAT SECRETARY PAULSON HAS INDICATED THAT NOT A GREAT DEAL OF ENTHUSIASM FOR THIS ALTERNATIVE AT THIS LATE MINUTE BECAUSE HE BELIEVES THAT SPEED OF GREAT IMPORTANCE AND NOTHING IS OFF THE TABLE. CERTAINLY THAT CAN BE DISCUSSED AND IT'S AWFULLY LATE IN COMING. >> WHEN YOU SAY HOPEFULLY BY THE END OF THE WEEKEND, SIR, THE ASIAN MARKETS OPENED SUNDAY NIGHT AT APPROXIMATELY 6:00 P.M. WE HAVE SEEN THAT OVER AND OVER AGAIN THAT THAT'S THE DEADLINE THAT THE FEDERAL RESERVE WANTED. IS THAT A MENTAL TIME FRAME THAT YOU ARE ALL WORKING WITH? ...