MSNBC "Interview With Senator Christopher Dodd" - Transcript

Interview

Copyright ©2008 by Federal News Service, Inc., Ste. 500, 1000 Vermont Ave, Washington, DC 20005 USA. Federal News Service is a private firm not affiliated with the federal government. No portion of this transcript may be copied, sold or retransmitted without the written authority of Federal News Service, Inc. Copyright is not claimed as to any part of the original work prepared by a United States government officer or employee as a part of that person's official duties. For information on subscribing to the FNS Internet Service at www.fednews.com, please email Carina Nyberg at cnyberg@fednews.com or call 1-202-216-2706.

MS. O'DONNELL: Joining us now live from Capitol Hill is Senator Chris Dodd, Democrat from Connecticut and chairman of the Senate Banking Committee.

Senator, good to see you. Thank you so much for joining us.

SEN. DODD: Thank you, Norah.

MS. O'DONNELL: We have heard from the White House that this deal is very likely happen today. What's your take on that?

SEN. DODD: Well, we've been working all weekend on it, Norah. It's been obviously complicated.

Let me just mention what we're trying to do here: This is a -- literally a bridge. I know people don't like that analogy, but if we don't provide some funding in the next few days, literally we could be looking at a -- at an industry that no longer exists, come early January. So we need to be in a position to be able to get to the point of restructuring this industry almost from top to bottom. And what we're trying to do is provide the funding that will allow us to do it.

Secondly, to make sure that as we move forward, we're going to see to it that taxpayers are far more protected than they have been, too often, in other cases -- we do that in this bill.

And then thirdly, we want to make sure that as -- come January, we can start restructuring this industry in a way that allows for profitability and viability in the coming years, so appointing a strong, for lack of a better word -- they get used too frequently -- a czar kind of figure here by the president-elect that would allow us to really make the decisions, along with the auto industry, prior to them getting any additional funding. You can't give out the money and then expect changes to occur. We've been down that road in the past and it doesn't work.

So those are the three main things we're trying to achieve in this bill.

MS. O'DONNELL: I understand that some appointment of a car czar, as some people are calling it, to oversee this money, this taxpayer money that would go towards helping out the auto industry, but when you talk about that initial bridge, as you called it, this $15 billion, that may just be the start of money that's provided to the automakers. What kind of conditions are you going to insist on to make sure that these car companies restructure them? What assurances have they given Congress that they are going to change the way they do business?

SEN. DODD: Well, first of all, the first money will be conditioned on things like executive compensation, inspector generals, a lot of -- a lot of oversight on the dollars going out the door, just in the bridge. And after that, obviously, this position -- this person has a position that will allow them to make some decisions in conjunction with the industry. And if they don't make those decisions, they don't get the money.

And then you're forcing them into an alternative which some are advocating -- and may end up there -- but I frankly don't think it's the best choice early on, and that is through a Chapter 11 kind of bankruptcy situation. I don't think the industry wants that. I don't think people who've really looked at this believe that's the wise way to go. So we're trying to achieve the results of restructuring without getting that far down the road.

And there'd be no limitations, in my view, in terms of what this auto czar could do, in terms of recommending the kind of changes we need.

MS. O'DONNELL: You know, there's one way to look at this, Senator, that this money is going to be taken from an existing plan already --

SEN. DODD: That's right.

MS. O'DONNELL: -- this $15 billion, which would have been for -- to encourage fuel efficiency, more green cars. Now you're giving that money just to help bail them out. What are you going to do to make sure that these companies build more energy-efficient cars, which are the cars that Americans want to buy?

SEN. DODD: Well, let me make two points to you, Norah. First of all, it's 7 billion (dollars), not 15 billion (dollars). The 7 billion (dollars) allows for loans of up to 15 billion (dollars). In this bill is also written the guarantee that those dollars be replenished in January, hopefully as part of the stimulus package. So we get right back to the retooling numbers that are necessary. So that's first of all.

This money has already been budgeted once, as you point out. So it's not a new money. It's money that's in the pipeline already.

Secondly, in terms of whether or not there are any guarantees that they're going to make these kind of changes and will have the resources to do it, obviously that's got to be part of the restructuring that goes forward.

But let me mention a third point, if I can, to you, that I think gets missed in this discussion. If you and I today were to produce an automobile that ran on air and could fly, we're not necessarily going to have an industry recover if people can't afford to buy it. There's an element here hasn't been given as much attention, and that is the availability of credit.

Today, Norah, if you walked into a dealership and didn't have a very, very high credit rating, you probably couldn't buy a car; as well as the dealers themselves out there are having a hard time getting credit to buy for the automobiles they put on their lots. So the credit issues are very much at the heart of this problem, in addition to producing a fuel-efficient, modern, less costly automobile.

MS. O'DONNELL: Finally, Senator, let me ask you -- your good friend Senator Ted Kennedy --

SEN. DODD: Yeah.

MS. O'DONNELL: -- is apparently working behind the scenes and is encouraging those in New York to select Caroline Kennedy to replace Senator Hillary Clinton. What do you think of that idea?

SEN. DODD: Well, I know Caroline not terribly well, but I think she'd be a great choice. Obviously, this is up to Governor Patterson, who I have a lot of respect for. I've gotten to know him fairly well over the last number of months. And I know he's giving a lot of thought and I presume she is, as well.

And I think she'd be a great addition to the Senate. I've watched her. She's substantive. She cares about issues. She demonstrated, I think, over the last number of months her anxiousness to get involved in the -- in the political life and substantive life of our country as she got so involved in the Barack Obama campaign. So I think she'd be a welcome addition. We don't like losing Hillary Clinton to the Senate, but she'd be a very fine replacement for her.

MS. O'DONNELL: Senator Chris Dodd, I know this is a busy day for you --

SEN. DODD: Yeah.

MS. O'DONNELL: -- as you work out the final details on that plan today. We really appreciate you bringing us the very latest here on MSNBC. Nice to see you.

SEN. DODD: Thank you, Norah.

Source