OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

On Bloomberg Discussing AIG Bailout and Future Regulation
September 18, 2008

... >> AS FOR THE POSSIBILITY OF ANY MORE REGULATIONS THIS YEAR, NOT GOING TO HAPPEN. THERE ARE SO FEW DAYS LEFT IN THE CALENDAR. BARNEY FRANK SAYS ONCE THERE IS A NEW PRESIDENT, THAT CHANGES ALL WHOLE GAME. >> THANKS VERY MUCH. ONE OF THE LAWMAKERS BRIEFED ON THE TAKEOVER WAS STENY HOYER. HE JOINS ME NOW FROM THE HILL WITH HIS REACTION AND THE POTENTIAL EXPOSURE TO TAX PAYERS. THANK YOU FOR THE TIME. IS THIS A MISTAKE? DID THE FIGURE TOO FAR HERE? >> FIRST OF ALL, I THINK WE NEED TO -- DID THE FED GO TOO FAR? >> WE WERE IN FORM OF ACTION THAT THE ADMINISTRATION OR THE FEDERAL RESERVE TOOK ON ITS OWN WITH THIS -- WITH RESPECT TO AIG. WHAT WE BRING TO THIS IS IN AIG, A VERY LARGE COMPANY. GREAT CONSEQUENCES OF FAILURE, BUT THE FACT IS THE INSURANCE SIDE OF THEIR BUSINESS WAS PRETTY STABLE. IT WAS THE INVESTMENT SIDE THAT WAS UNREGULATED. THAT GOT THEM IN REAL TROUBLE. WHAT BARNEY FRANK SAID AND CHRIS DODD HAS SAID IS THAT THIS CLEARLY NEEDS TO BE CAREFUL SCRUTINY BY CONGRESS ON BEHALF OF THE AMERICAN PUBLIC BECAUSE WE HAVE PUT THEM AT RISK BY THIS TAKEOVER AND SOME OF THE OTHER ACTIONS WE HAVE TAKEN AND HAVE BEEN NECESSITATED BY THE BASIC PREMISE OF THIS ADMINISTRATION THAT THEY THOUGHT THAT REGULATION WAS HARMFUL TO BUSINESS. I THINK THEY TOOK THE REFEREE OF THE FIELD. THE GAME HAS TO COME CHAOS AND THE AMERICAN PUBLIC IS PAYING THE PRICE. AND BARNEY FRANK IS GOING TO BE HOLDING THE HEARINGS ON WHAT WE NEED TO DO GOING FORWARD. AND HENRY WAXMAN WILL BE LOOKING AT THE WHAT HAPPENED TO BRING US TO THIS POINT. >> IF I HEAR YOU CORRECTLY, THERE ARE REGULATORY ISSUES IN THE FUTURE THERE WILL BE A HOT TOPIC, BUT YOU AND OTHER DEMOCRATS ARE NOT TOTALLY PREPARED TO SAY THE FED MADE THE RIGHT OR WRONG MOVE HERE? >> WE ARE NOT PREPARED TO SAY THAT. WE WERE INFORMED OF THAT. THIS WAS NOT A CONSIDERED JUDGMENT. IT IS MY UNDERSTANDING THE FED IN THIS INSTANCE ACTED UNDER AUTHORITY THAT HAD BEEN GRANTED IN DEPRESSION ERA DAYS. WE HAVE NOT SEEN THIS SITUATION IN OUR ECONOMY SINCE THOSE DAYS. THE BUSH MANAGEMENT OF OUR ECONOMY HAS BEEN A VERY POOR ONE. A DEBT DID NOT MATTER AND THAT HAS LED US TO THIS PAST. UNFORTUNATELY, THE TAXPAYERS ARE BEING PUT AT RISK. IN SOME INSTANCES, IT IS BETTER TO DO THAT. BETTER TO SUPPORT THEN HAVE AN EVEN GREATER COLLAPSE, BUT IT IS TOO EARLY FOR ME TO MAKE AN ASSESSMENT BECAUSE WE DON'T HAVE ENOUGH INFORMATION ON THAT ISSUE. WE WERE NOT INVOLVED IN THE DECISION. >> LET ME ASK YOU ABOUT THE REGULATORY OVERHAUL EVERYBODY IS TALKING ABOUT. THE TWO PRESIDENTIAL CANDIDATES BOTH TALKING ABOUT OVERHAULING REGULATIONS. SOME WOULD SAY GIVEN THE SERIOUSNESS OF THIS SITUATION, MAYBE CONGRESS SHOULD NOT BE HEADING OUT. THEY SHOULD COME BACK FOR A LAME DUCK SESSION AND DEAL WITH THIS THIS YEAR. IS THAT POSSIBLE? >> IT IS POSSIBLE, BUT LET ME TELL YOU WHAT WE WOULD BE BEFORE WE MAKE THAT DECISION. I EXPECT HENRY WAXMAN TO BE HAVING HEARINGS IN OCTOBER WHETHER WE LEAVE HERE ON THE 26 OF SEPTEMBER, WHICH I SUSPECT WE WILL. HE WILL BE HEARING -- HAVING HEARINGS IN OCTOBER. I EXPECT BARNEY FRANK TO BE DOING THE SAME THING. WE'RE LOOKING AT WHAT ARE THE SHORTFALLS? WHAT ARE THE SOLUTIONS? HOW DO WE NEED TO PROCEED? NOT ONLY TO STABILIZE OUR ECONOMY, PROTECT OUR TAX PAYERS. AND PROTECT JOBS AND OUR ECONOMY. UNFORTUNATELY, THE AVERAGE WORKING FAMILY IN AMERICA IS PAYING THE PRICE FOR SOME EXTRAORDINARY IRRESPONSIBILITY IN THE BUSINESS COMMUNITY. AND IT'S EXTRAORDINARY FAILURE OF -- TO ACT RESPONSIBLY IN TERMS OF INCURRING DEBT. THAT DEATH HAS PUT A LOT OF PEOPLE UNDER. -- THAT DEBT HAS PUT A LOT OF PEOPLE UNDER. >> WOULD YOU SAY TO PEOPLE WHO ARE WONDERING WHAT IS COMING DOWN THE ROAD? HAVE TOUGH OF A REGULATORY WHIP WILL IT BE? >> I HOPE IT WILL BE INAPPROPRIATE TO REGULATORY ACTION. WHEN I SAY APPROPRIATE, -- I HOPE IT WILL BE AN APPROPRIATE REGULATORY ACTION. THE FACT IS WHAT WE NEED TO DO IS REGULATION WHICH BOTH ENSURES AGAINST SOME OF THE IRRESPONSIBLE BEHAVIOR THAT HAS GONE ON, BUT ALSO PROVIDES FOR ...