MSNBC "MSNBC Interview With Senator John Tester" - Transcript

Interview

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MS. BREWER: Right now in Washington, CEOs of the Big Three Detroit automakers are in front of the House Financial Services Committee. They're back on the Hill for a second day asking for $34 billion in government bailout money.

MR. ALAN MULALLY (President and CEO, Ford Motor Company) (From video.): I want you to know I heard your message loud and clear.

MR. RICK WAGONER (Chairman and CEO, General Motors) (From video): We're here today because we made mistakes, which we're learning from.

MR. ROBERT NARDELLI (CEO, Chrysler Corporation) (From video): We take this very seriously. We understand our fiduciary responsibility. I can tell you I understand the weight of this meeting and tomorrow.

MS. BREWER: That plea is being echoed on the front page of this morning's Detroit Free Press, it reads, "Invest in America." The paper also features a letter to members of Congress urging them to approve a bailout plan.

With me now live from Capitol Hill, Montana Senator Democrat Jon Tester.

Senator Tester, it's good to see you today.

SEN. TESTER: It's good to be on. Thanks, Contessa.

MS. BREWER: I want to mention that you serve on the Senate Banking Committee. You were part of the hearing yesterday, and I wanted to play a little bit of the exchange, your questioning of these Big Three CEOs.

SEN. TESTER (From video.): Why give American taxpayer dollars to somebody who is going to invest it in some other country than this country? That's been a problem.

MR. WAGONER (From video): Senator, let me just be clear. No funding that comes out of this would go to fund a facility overseas.

MS. BREWER: Were you concerned when he made the clarification, no funding that comes out of this? I mean, does that just mean they take money from another place and send it overseas?

SEN. TESTER: Well, that's a concern and I will tell you that's why the CEOs, that's why I put them on the spot. I actually heard a rumor yesterday that they were going to expand a plant in Mexico and that's not what taxpayer dollars should be used for, it should be to increase the manufacturing base here.

We know the automakers are in trouble; that was apparent in yesterday's meeting. They came back much better prepared than they had two weeks ago, actually, took one of my recommendations for the Lee Iacocca thing for a $1 year salary until they become profitable. But the bottom line is, I think, the big problem here is that they have run their companies poorly. I think there's no denying that and if we're going to put taxpayer dollars into this situation, I don't want to see them investing in any other country other than this country to create jobs and to increase our manufacturing base.

MS. BREWER: I know a lot of taxpayers are concerned, but there are a lot of industries that have had to cut jobs or where companies have had to go into bankruptcy and come up with a new plan to address a different, sort of business environment.

Here you are from Montana where there are a lot of rural communities and I know you've expressed concern about what happens to these car dealerships that in many cases support rural communities, but if people aren't buying those cars --

SEN. TESTER: Yeah.

MS. BREWER: Then why should we keep paying for these companies to operate if their products are not in demand?

SEN. TESTER: Well, I mean, they have -- part of the problem is the economic turndown we're in has created a lack of cash flow. We've been all over that before, but the truth is that, I think, when you're talking about long-term for this country and we're talking about investing in infrastructure over the next few months, I'm sure that will be a big issue, we need to make sure our manufacturing bases is held whole and that has impacts across the board. You know, the point is correct; they have to make a product that the consumers want to buy, that has good mileage, that is dependable, but the fact is if they're not there, they can't do that.

MS. BREWER: Are you going to vote for a bailout?

SEN. TESTER: The devil is in the details, Contessa. I need to see what the bill contains. Taxpayers have to be protected. They have to be the first payback for the loans. We need to make sure the money is invested here. There needs to be an oversight board that has real powers to be able to restructure these things.

I don't want bankruptcy to be the first option. You saw the employment numbers today; they weren't pretty.

MS. BREWER: But why not? I mean, I know Nancy Pelosi, too, she says that bankruptcy is not an option, but we've seen with airlines, if they go into bankruptcy they can restructure and come out stronger than ever, better able to weather tough financial times.

SEN. TESTER: I will just say this. I think everything is on the table, but bankruptcy should be the last option. The truth is that we've got unemployment numbers, bankruptcy is not a pretty thing, it'll put a lot of people in a very dire situation, whether it's before Christmas or after Christmas.

So I think it needs to be an option, but it absolutely can't be the first option, it should be the last option.

MS. BREWER: And one more thing here. Barney Frank has suggested that it's time for Barack Obama to step up to the plate and start giving some details of his own and start making a real stand in a specific way on some of these economic crises. Do you think it's time for him to do more?

SEN. TESTER: Well, I think Barack Obama has done a great job in this transition, and I think the fact that he pointed out that we can't have two presidents and President Bush is still the president, is very accurate and I think they're working very, very hard, but make no mistake about it; inauguration is over a month away.

MS. BREWER: Senator Tester, you're a busy man, so I appreciate the time you've given us.

SEN. TESTER: It's very good to be with you, Contessa. Thank you.

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