OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

Insight to Where the Recovery Package Stands on Bloomberg
September 25, 2008

... NOW THINGS MAY BE IN TROUBLE. THE DOW, SAP, NASDAQ FEATURES ALL POINTING DOWN. WE WILL CHECK ON THE ASIAN MARKETS, WHICH JUST OPENED. ONE OF THE PARTICIPANTS IN THE LIGHT DAY MEETING WAS THE HOUSE MAJORITY LEADER, STENY HOYER, THE MARYLAND DEMOCRAT, WHO JOINS ME NOW FROM THE HILL ON HIS TAKE ON WHERE THE BAILOUT PACKAGE STANDS IN THE POSSIBILITY OF A VOTE IN THE HOUSE. WE APPRECIATE YOU STAYING UP WITH US. WHAT HAPPENED THIS EVENING? IS THIS IN TROUBLE? >> THANK YOU, PETER. I HOPE IT IS NOT IN TROUBLE. THAT MAY MAKE A LOOK-ALIKE -- CORRECTION TO WHAT LIZZIE HAD TO SAY. WE'RE WORKING ON THE PRESIDENT'S PROPOSAL, AS SUBMITTED BY SECRETARY HANK PAULSON. WE HAVE PROVIDED EQUITY PARTICIPATION BY TAXPAYERS TO TRY TO HELP THOSE WHO HAVE MORTGAGES AND THE RISK OF LOSING THEIR HOMES. HAVING SAID THAT, WHAT YOU SAW TODAY WAS SENATE DEMOCRATS AND SENATE REPUBLICANS COMING TOGETHER, WITH HOUSE DEMOCRATS, LED BY CHAIRMAN BARNEY FRANK, AND SAY WE THINK WE ARE CLOSE TO AGREEMENT WITH THE ADMINISTRATION ON MEETING THE CRISIS WHICH ACROSS THE BOARD PEOPLE BELIEVE IS VERY SERIOUS, CONSEQUENTIAL TO WORKING MEN AND WOMEN THROUGH THE COUNTRY, THEIR HOME OWNERSHIP, THEIR ABILITY TO GET CREDIT. WE THINK THIS IS A CRISIS NOT JUST FOR WALL STREET BUT MAIN STREET. WE WANT TO PROTECT MAIN STREET IN THE PROCESS. WE WILL WORK VERY HARD BECAUSE WE BELIEVE THIS IS A VERY SERIOUS CHALLENGE TO THE COUNTRY. WE ARE PREPARED TO WORK THROUGH THE WEEKEND TO GET AN AGREEMENT. UNFORTUNATELY, THIS AFTERNOON, REPUBLICANS IN THE HOUSE CAME UP WITH THEIR OWN SEPARATE PLAN, WHICH THEY NEVER MENTIONED YESTERDAY DURING THE HEARINGS WITH BERNANKE AND PAULSON, WHICH CAME AS NEWS. THAT CLEARLY HAS SLOWED US DOWN. IT IS MY UNDERSTANDING THAT SECRETARY PAULSON AND THE PRESIDENT WILL TALK ABOUT THIS. THIS IS THE PRESIDENT'S PLAN, SECRETARY PAULSON'S PLAN WE'RE WORKING ON. WE'RE STRESSING IT, GIVING IT DIRECTION. THIS IS A PLAN DESIGNED BY SECRETARY PAULSON TO MEET THE CRISIS, STABILIZE THE ECONOMY, AND PREVENT GOING DEEPER INTO RECESSION. >> I NEED TO INTERRUPT YOU BECAUSE WITH ANOTHER BREAKING STORY, AND THAT IS THE OFFICE OF SUPERVISION SAYING THAT WASHINGTON MUTUAL HAS BEEN ACQUIRED BY JPMORGAN CHASE THIS EVENING. THEY SAY THE CHANGE WILL NOT AFFECT THE BANK'S DEPOSITORS AND WILL NOT AFFECT OTHER CUSTOMERS. THEY ALSO SAY THE FDIC HAS BEEN APPOINTED AS RECEIVER FOR WASHINGTON MUTUAL. BOTTOM LINE, J.P. MORGAN ACQUIRING WASHINGTON MUTUAL, THE NATION'S LARGEST SAVINGS AND LOAN. MORE TROUBLE IN THE FINANCIAL SECTOR. ANY IMMEDIATE REACTION TO THIS NEWS THAT MAY SHARE? >> THIS IS THE FIRST TIME THAT I'VE HEARD IT, BUT IT IS FURTHER EVIDENCE OF THE FRAGILE NATURE OF OUR ECONOMY AND THE FRAGILE NATURE OF OUR FINANCIAL INSTITUTIONS AT THIS POINT IN TIME. IT REITERATES HOW IMPORTANT IT IS FOR US TO COME TOGETHER IN A BIPARTISAN WAY TO ADDRESS THIS CRISIS, STABILIZE OUR ECONOMY, AND PROTECT THE TAXPAYERS AND CITIZENS. IT WILL AFFECT EVERYBODY IF THE RECESSION GETS DEEPER. IT WILL AFFECT JOBS, THE ABILITY TO BUY A CAR OR WASHING MACHINE, SEND KIDS TO COLLEGE. THIS IS A VERY SERIOUS CRISIS. WE NEED TO ACT QUICKLY AND IN A BIPARTISAN WAY. WE THOUGHT WE WERE THERE, THE HOUSE REPUBLICANS HAVE COME UP WITH THEIR OWN IDEA AT THE LAST MINUTE, AND WE WILL TRY TO DO WITH THAT AND STAY HERE AS LONG AS IT TAKES TO WORK WITH THE ADMINISTRATION, WORK WITH THE SENATE AND HOUSE TOGETHER TO CONFRONT THIS PROBLEM. >> DO YOU FEEL THE MEETING THIS AFTERNOON, DID IT SERVE ANY PURPOSE? THERE WAS SOME SUGGESTION FROM THE DEMOCRATIC SIDE IT DID MORE HARM THAN GOOD. >> I THINK SENATOR MCCAIN'S OBSERVATION OF THE HOUSE REPUBLICANS HAD THE RIGHT TO MAKE THEIR OWN DECISION, HE DID NOT HAVE TO TELL ANYBODY IN THE ROOM THAT WAS THE CASE. OF COURSE THEY DID. BUT FORTUNATELY, THEY DID NOT COME UP WITH THESE VIEWS UNTIL THE LAST HOUR OF BAR SOAP -- THE THE LAST HOUR OF BAR SOAP -- THE LAST HOUR OR SO. THAT WAS NOT USEFUL, AND THINK FRANKLY SENATOR MCCAIN'S CONTRIBUTION WAS TO FURTHER DIVIDE WHAT WE THOUGHT WAS A UNIFIED POSITION THAT WE WERE COMING TO. IN ANY EVENT, SENATOR MCCAIN HAS NOT REALLY BEEN INVOLVED IN THESE NEGOTIATIONS, NOR FOR THAT MATTER HAS SENATOR OBAMA. WE HAVE A CHAIRMAN DODD, CHAIRMAN FRANK, RANKING MEMBER SHALL BE WORKING AROUND THE CLOCK -- RANKING MEMBER SHELBY WORKING AROUND THE CLOCK TO GET THIS PAST AND GIVE CONFIDENCE TO ...