MSNBC "Interview With Senator Johnny Isakson" - Transcript
Interview
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MS. BREWER: We're just receiving an update on the automakers' bailout bill. Apparently, the House may take up the bailout bill today and we're told that it's likely to pass this afternoon or this evening. You're looking at a live picture right now.
The bill represents the agreement with the White House now. There was some discussion between the White House and congressional Democrats and some Republicans. The Senate, however, is another issue here. There is significant Republican opposition to this bailout bill. We may see a vote over there potentially this weekend and it may not pass the Senate because there's a group of Republican senators who are likely to oppose the auto bailout plan, and again, we're just minutes now from a news conference with some of those Republican lawmakers.
Joining me from Washington, Senator Johnny Isakson, a Republican from Georgia.
I understand, Senator Isakson, you are opposed to the bailout. Can you explain why?
SEN. ISAKSON: Well, Contessa, I have serious concerns. It seems to me like to protect the taxpayers' money; a pre-arranged Chapter 11 reorganization with the United States being debtor in possession would be a far better arrangement than a gift of money or a loan of money under conditions that are promises, but without guarantees.
It's a very difficult situation, the auto industry; in particular, General Motors is in a very difficult position and have put their dealers in very difficult positions. I understand that. But we have to be careful with the money, the taxpayers' money and if you say yes here, to whom do you say no when retailers come in January?
MS. BREWER: You know, senator, isn't it a little late to be talking about being careful with the taxpayers' money when the TARP passed, $700 billion, $350 billion already spent, passed out and we really don't know where that went or how it's working.
SEN. ISAKSON: Well, yes, we do know where it went and we know it's not working as well as it was intended, but Contessa, you and I wouldn't be talking today if we had not passed that legislation because of the situation in the credit markets. That was the right thing to infuse capital in the credit markets. It becomes secured by preferred stock with a guaranteed paid back of five percent to the taxpayers, and had we not done it, we would have been in a whole lot worse shape today.
MS. BREWER: That being said, the argument goes, there are potentially millions of jobs on the line, businesses, and if these auto companies fail, then our nation heads to depression.
Do you buy that argument?
SEN. ISAKSON: I buy the argument that if these industries fail, we've got deep trouble, but I also understand that in every other situation that I've ever known, the alternative is not to fail or to go out of business, but to go into Chapter 11 reorganization and restructure both your debt, as well as your contractual relationships, which I still think is the right thing to do.
MS. BREWER: Senator Isakson, I know that there are a lot of Americans who share your concern and there are a lot of Americans who are more concerned about whether they're going to have a job if the auto industries fail, so we're stuck between a rock and a hard place on this one.
Thank you, sir.
SEN. ISAKSON: Thank you, ma'am.
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