MS. WARNER: And for that, we're joined by Senator Christopher Dodd, Democrat from Connecticut. As Banking Committee chairman, he's taking a lead role in managing the bailout legislation. And Senator Jon Kyl of Arizona, he's the number-two Republican in the Senate.
Welcome to you both. Thanks for being with us.
Senator Dodd, where do negotiations stand as of now?
SEN. DODD: Well, we're working well. I was just saying to Jon that this afternoon I had very good meetings with Senator Schumer, a Democrat from New York -- a member of the Banking Committee -- and Senator Bob Bennett, Chuck Hagel, Mel Martinez, Bob Corker, all members of the Republican aisle on the Banking Committee.
Nothing has been resolved here. But we're working with the common points here, and that is I've talked, of course, over the week, the last three days almost non -- no sleep to maybe 40 or 50 members, including many Democrats, as well, with various ideas.
The overall thrust I would share with you. There will be some people who are going to be against this no matter what we do. The overall membership, I think, as I've talked to them, believe we need to do something. Inaction is not acceptable. But clearly we're not going to write a check for $700 billion and walk away.
Accountability issues, taxpayer concerns, what we do with the foreclosure issue are all legitimate issues that people are raising. Some maybe have more items they want to add, others less, but all of it kind of focused on the issue. No one wants to turn this into a Christmas tree.
So I feel very positive at this point. We've got a lot of work to do over the next three or four days. But I'm optimistic we can come to a bipartisan result here that will allow the secretary to move, but simultaneously give us the assurance that we're not just going to turn over a check and walk away.
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MS. WARNER: Senator Dodd, help us with the process here. Senator Kyl said some of his fellow Republicans or he's channeling some Republican suggestions to Treasury. Is that the process, or are you writing an amended bill, essentially?
SEN. DODD: Well, again, and Jon is right. There's not a coherent approach on this point, because we're doing something extraordinary.
Jon and I were in the room last Thursday evening when we heard some rather dramatic descriptions of the condition of our economy. We have about a week or so left here before we adjourn, before the elections.
Normally, you'd have a bill in the Senate, a bill in the House, you'd go back and forth, and this would take a normal amount of time, where good ideas would be explored, examined, and rejected or accepted.
We're trying here to bring everyone together at one moment in time on an extraordinary request. This is twice the cost of the Iraq war, $700 billion. In 41 days, we're going to have a new president. I presume within hours after that choice being made, they're going to announce maybe who the new secretary of the Treasury is apt to be.
So it isn't just this Treasury or Treasury secretary, but the one that will follow this one, who will also be charged with handling all of this. And, therefore, there are legitimate questions. Can we do this? Jon's correct. We need to move quickly.
I would add -- and I would hope we all agree -- it's just as important we do this correctly, if we can, that we don't want to look back, because there isn't a second act to this. There's not another $700 billion if this plan doesn't work for us to come back to.
So while it's important to move quickly, it's also important to move with a clear purpose in mind as to how this will work. The accountability provisions are very important to people.
Secondly, of course, making sure that taxpayers are going to be protected and first in line, if we hope, as we do, that these assets will eventually produce revenues that can come back.
So I'm trying to build consensus with my committee -- Democrats and Republicans, where I can -- to be able to say to the leadership: We've got something working here. Working with Barney Frank in the House, I know he's trying to work, as well, and then simultaneously with the Treasury, so that they will accept these ideas or give us a good reason why they ought to be rejected. And hopefully we can do that in the next two or three days.
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MS. WARNER: Senator Dodd, in our limited time, let me ask you about two of the real biggies that many Democrats and many Republicans have talked about. One is some limit on executive compensation of the countries that get bailed out.
And the other is to help homeowners who are at risk of foreclosure, in addition to helping the banks who are at risk of being -- having their assets so they can't -- that they can't sell.
So are you near agreement with the administration on either of those? Barney Frank said today that, in fact, they did seem amenable to helping the homeowners at risk of foreclosure.
SEN. DODD: Well, I hope so, because again -- and, again, Ben Bernanke, the chairman of the Federal Reserve, and Hank Paulson have said repeatedly over the last number of weeks that, of course, the cause of this problem, a preventable problem, in some ways, had there been a more aggressive action on the foreclosure problem earlier on, is still at the heart of this, these mortgage-backed securities, the bulk of which are residential mortgages that are not worth much.
MS. WARNER: But my question is, do you think you're close to some agreement, at least in concept, that that should be part of this bill?
SEN. DODD: Well, I believe it should. And I think there are a number of people who agree with that. Otherwise, we're back at this problem again, until you deal with the cause of it.
Dealing with executive compensation is thornier for some. It's probably more of an optics issue than dealing with the issue itself. But, again, if you're investing $700 billion of taxpayer money, what the public would be irate over is if in some of these companies where we're buying this junk and getting it off their books, that they turn around and end up having contracts that award them, reward them with multimillion-dollar compensation packages.
I can't begin to describe to you the anger we would receive from people if we didn't try to address that, as well.
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SEN. DODD: Well, it should be done soon. And, again, I think speed is important. But I want to emphasize to you getting it right -- we're going to live with this for decades to come now, so we better do it right, as well.
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MS. WARNER: Senator Kyl, Senator Dodd, thank you both.