OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

On Fox with Neil Cavuto on AIG and More Stimulus
September 17, 2008

... WE'RE TALKING ABOUT A COMPANY WITH ONE TRILLION DOLLARS OF ASSETS. I WILL BE HERE WITH THE LATEST ON FOX THROUGHOUT THE EVENING. NEIL: THANK YOU VERY MUCH. A PUSH FOR MORE STIMULUS, AT LEAST $50 BILLION MORE. THANK YOU VERY MUCH, ALWAYS GOOD HAVING YOU WANT. WHAT DO YOU THINK SHOULD BE DONE FOR AIG? >> BIGGER PELOSI TALKED TO HANK PAULSON ABOUT THAT. FRANKLY, WE DO NOT HAVE A RECOMMENDATION AT THIS POINT IN TIME. I DO NOT WANT TO SPEAK FOR THE SPEAKER. CLEARLY, I JUST HEARD THAT PATERSON SAID THIS WOULD BE CATASTROPHIC. MY UNDERSTANDING IS THERE ARE TWO SIDES. THE INVESTMENT SIDE IS NOT IN GOOD SHAPE OBVIOUSLY. WE JUST SAW LEHMAN BROTHERS GO DOWN $650, CLEARLY THE CONSEQUENCES OF A FAILURE WOULD BE SUBSTANTIAL. SECRETARY PAULSON WAS REFLECTING THE FACT THAT GOING FURTHER AND PUTTING THE TAXPAYER I CONTINUED RISK ON BAILING OUT COMPANIES THAT FRANKLY HAVE TAKEN RISKS THAT WERE UNJUSTIFIED, IS NOT NECESSARILY THE POLICY OF WHAT WE CONTINUE TO PURSUE, PARTICULARLY WHEN THE FEDERAL GOVERNMENT ITSELF IS SO DEEP IN DEBT. NEIL: WOULD IT BE A BAILOUT OF THE FEDERAL RESERVE BOARD TO PROVIDE A CROWDED BY? D.C. THAT AS A TAXPAYER MONEY BEING INVOLVED? >> ULTIMATELY, A TAX PAYER MONEY COULD BE INVOLVED THERE, BUT THAT IS ONE OF THE OPTIONS. I DO NOT WANT TO OPINE RIGHT NOW ON WHAT ACTION IF ANY OUGHT TO BE TAKEN. SECRETARY PAULSON, WE WORK CLOSELY ON A NUMBER OF THESE ISSUES WITH HIM IN THE PAST. I TALKED TO HIM IN THE LAST 48 HOURS WITH REFERENCE TO THIS. IT IS CLEAR THAT WE HAVE AN AWFUL LOT OF COMPANIES, VERY LARGE ENTERPRISES. DICK CHENEY, AT THE VERY EARLY PART OF THIS ADMINISTRATION, SAYS THAT DAD IS NOT MATTER. UNFORTUNATELY, BUT THIS ADMINISTRATION AND FAR TOO MANY PEOPLE TOOK HIM LITERALLY. WE SEE THE ACCUMULATION OF EXTRAORDINARY DEBT. WHEN THE CRUNCH CAME IN THE HOUSING MARKET, BUT AWFUL LOT OF VERY LARGE FOLKS FOUND THEMSELVES UNABLE TO MEET DEBT CRISIS. NEIL: YOU WOULD BE THE FIRST TO SAY THAT THERE ARE BASIC PRUDENT STANDARDS. >> WE SEE THE SUBPRIME PROBLEM. WE SEE THE -- WE SEE THAT GREENSPAN DID NOT ENFORCE IT. WE PASS LEGISLATION FOR FANNIE MAE AND FREDDIE MAC. MR. SHELBY WAS OPPOSED TO IT. SECRETARY PAULSON WAS FOR IT. NEIL: ALL I AM SAYING, CONGRESSMAN, IS THAT YOU WANT TO ENCOURAGE MINORITY LENDING. REPUBLICANS DID AS WELL. THERE WAS A LOT OF LENDING TO THOSE. DO YOU THINK INTRINSICALLY IT WAS A MISTAKE ON BOTH PARTIES PART? TO PUSH FOR HOME OWNERSHIP FOR EVERYBODY? >> FANNIE AND FREDDIE GOT CAUGHT UP IN TRYING TO DO WITH THE CONGRESSMEN HAVE DONE. THERE IS SMALL -- THERE IS MORE HOME OWNERSHIP, MORE HOME OWNERSHIP THAN EVER IN AMERICA, THEY WERE PROUD OF THAT. WE ENCOURAGED THE FACILITATION OF THAT. WHAT HAPPENS IS THAT THOSE IN CHARGE, NOT JUST FANNIE AND FREDDIE, THEY CREATED OPPORTUNITIES FOR A STRANGE OPPORTUNITY FOR DEAD. HE DID THAT HAVE A LENDER-BROW WERE RELATIONSHIP. THEY PASSED OUT THE DEAD TO A THIRD-PARTY. IT AND AWAY WE WENT. I AM SORRY, CONGRESSMEN. >> I DO NOT KNOW THE ANSWER. EVERY MONTH SECRETARY PAULSON SAYS SOMETHING. WE HOPE SOMETHING POSITIVE HAS HAPPENED. WE FEEL THIS ECONOMY HAS BEEN ...