OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

Hoyer Discusses Tarp Aid for Automotive Industry on Power Lunch
December 12, 2008

... SIGNAL FROM TREASURY THAT, YES, YOU WILL HAVE THE MONEY AND HERE'S WHEN IT WILL BE DELIVERED, THAT'S WHEN THINGS WILL BE TRULY BETTER IN DETROIT. AT THIS POINT THEY ARE STILL HOLDING THEIR BREATH A BIT. >> CAN WE ASK YOU TO STAND BY BECAUSE RIGHT NOW JOINING FROM US CAPITOL HILL RIGHT NOW, WE'RE PLEASED TO WELL COME HOUSE MAJORITY LEADER STENY HOYER BEFORE HE HEADS OUT FOR THE RECESS AS CELL. MR. LEADER, THANK YOU FOR YOUR TIME. >> THANK, GOOD TO BE WITH YOU. >> ASSUMING THAT TARP MONEY IS USED FOR THE BAILOUT, AND MAYBE YOU COULD SHED SOME MORE LIGHT ON THAT, ARE YOU OKAY WITH THAT? >> YES. >> AS A MATTER OF FACT, WE THINK TARP MONEY OUGHT TO BE USED, I'VE TALKED TO SECRETARY PAULSON THIS MORNING, AND OUR REPRESENTATIVE ON BEHALF OF SENATOR REID AND SPEAKER PELOSI AND MYSELF THAT WE THINK IN THE CIRCUMSTANCES THAT CONFRONT US IT'S APPROPRIATE TO USE THE TARP MONEY REMAINING TO LEND STABILITY TO ENSURE THAT THE AUTO COMPANIES DO NOT GO UNDER BETWEEN NOW AND WHEN WE COME BACK. >> DID HE SIGNAL THAT HE INTENDS TO DO THAT? >> INDICATED THAT HE WAS LOOKING AT THAT AND THAT HE HAD HIS TEAM LOOKING AT THAT AND WANTS TO NOTE RAMIFICATIONS OF THAT. I THINK THAT'S APPROPRIATE, BUT I THINK HE SHARES THE SAME SENSE OF URGENCY THAT SENATOR REID AND SPEAKER PELOSI AND I SHARE AND I WOULD HOPE THAT THEY ACT QUICKLY AND EXPECT THEM TO ACT QUICKLY TO SEND A MESSAGE TO THE AUTOMOBILE CAR COMPANIES AS TO EXACTLY WHAT THEY SYMPATHY APPROPRIATE. >> LEADER HOUR, SEVERAL WORRIES ON WALL STREET RIGHT NOW. ONE IS THAT NOTHING GETS DONE AND YOU FACE A CATACLYSMIC EVENT FOR THE AUTOMAKERS, AND THE OTHER IS IF THE TARP IS ACCESSED, $335 BILLION WORTH OF THE TARP MONEY IS ALREADY ALLOCATED AND HAS BEEN USED, IF THE AUTOMAKERS NEED 15, THAT BRINGS US PRETTY CLOSE TO THAT $350 BILLION AND IF WE HAVE ANOTHER FINANCIAL CRISIS THAT COULD BE A BIG PROBLEM. ARE YOU WORRIED THAT IT USES UP WHAT'S LEFT OF THE TARP IN THE MIDST OF WHAT'S ARGUABLY STILL AN ONGOING CRISIS FOR THE FINANCIAL COMMUNITY? >> WE BELIEVE THERE IS AN ONGOING FINANCIAL CRISIS. WE BELIEVE WE NEED TO BE READY TO RESPOND TO THAT, AND MY VIEW ON THAT IS THE CONGRESS IS AVAILABLE. AS YOU KNOW THERE'S ANOTHER $350 BILLION THAT HAS NOT BEEN AUTHORIZED YET. THE ADMINISTRATION HAS NOT ASKED FOR THAT YET. I KNOW THAT -- I'VE CONFIDENCE THAT SECRETARY PAULSON IS IN TOUCH WITH THE OBAMA TRANSITION TEAM, INCLUDING THE FINANCIAL SECRETARY DESIGNATE GEITHNER AND LARRY SUMMERS OF THE ECONOMIC ADVISER. I KNOW THAT THEY ARE IN DISCUSSIONS SO THAT MY EXPECTATION IS IF IN THE TIME FRAME LEFT BETWEEN NOW AND JANUARY 20TH ACTION IS NECESSARY AND THE CONGRESS NEEDS TO TAKE ACTION, THAT WE WILL CALL THE CONGRESS BACK INTO ACTION TO TAKE THE APPROPRIATE ACTION THAT'S NECESSARY. >> OBVIOUSLY WHAT'S HAPPENED OR WHAT COULD BE HAPPENING RIGHT NOW USING TARP MONEY, JUST KIND OF KICKS THIS DOWN THE ROAD TO THE NEXT CONGRESS AND THE NEXT ADMINISTRATION. DO WE -- DO YOU SENSE THAT WE GO THROUGH THIS WHOLE CIRCUS AGAIN TO TRY AND GET SOMETHING THROUGH THE HOUSE AND THE SENATE, OR WILL WE JUST SIMPLY START USING THE NEXT TRANCHE OF THE TARP MONEY TO PROVIDE FOR THE AUTOMAKER INDUSTRY RIGHT NOW? >> I THINK IT'S VERY UNFORTUNATE THAT THE SENATE REPUBLICANS CHOSE FRANKLY TO FOCUS SOLELY ON LABOR AND IT'S BEEN REPORTED IN THE ""NEW YORK TIMES"" THIS WAS ALL ABOUT THE POLITICS OF THE REPUBLICAN CONFERENCE AND THEIR RELATIONSHIP TO THE UAW, TO LABOR IN GENERAL. I THINK THAT'S TERRIBLY UNFORTUNATE. I THINK THAT WE WORKED VERY CLOSELY, DEMOCRATS AND THE LEADERSHIP OF THE HOUSE AND DEMOCRATS AND THE LEADERSHIP OF THE SENATE, WORKED VERY CLOSELY WITH THE REPUBLICAN ADMINISTRATION TO TRY TO COME UP WITH A PLAN THAT WAS WORKABLE, THAT WOULD ENSURE TAXPAYER PROTECTION, WOULD ENSURE THAT THE AUTOMOBILE COMPANIES, LABOR, DEALERS, SUPPLIERS, BONDHOLDERS, STOCKHOLDERS, ALL HAD TO COME TO THE TABLE TO GIVE US A VIABLE PLAN BY MARCH 31ST. THAT WAS TOUGH LEGISLATION TO GET TO. WE GOT TO IT, AND IT'S TERRIBLY UNFORTUNATE THAT THE SENATE -- >> I GUESS WHAT MY QUESTION WAS, IF YOU CAME TO IT, WHAT DID YOU THINK OF THE CORKER PROPOSAL WHICH TIGHTENED THE DEADLINE, IT ASKED FOR CONCESSIONS FROM LABOR EARLIER THAN THE HOUSE VERSION DID AND ALL THE OTHER ELEMENTS THAT INCLUDED IN THAT CORKER PROPOSAL THEY WERE NEGOTIATING LAST NIGHT, WOULD THE HOUSE BE WILLING TO GO ALONG WITH THOSE MEASURES, DO YOU THINK? >> WELL, I HAVEN'T SEEN -- I'VE OBVIOUSLY HEARD THEM REPORTED, AS YOU HAVE. MY SENSE OF IT IS THAT AN AGREEMENT PROBABLY COULD HAVE BEEN REACHED BUT, OF COURSE, THE ONLY PEOPLE THAT WERE ASKED FOR A DEADLINE WAS LABOR ITSELF. MY VIEW IS THAT'S NOT WHAT WE WERE SEEKING IN THE LEGISLATION. WE'RE SEEKING ALL OF THE STAKEHOLDERS TO COME TO THE TABLE, COME TOGETHER, COME UP WITH A PLAN TOGETHER THAT WILL ASSURE THE TAXPAYER INVESTMENT IS PROTECTED AND THAT THE AUTOMOBILE INDUSTRY WILL REMAIN VIABLE. THAT'S WHAT WE WANT TO DO, NOT ...