CNBC Interview - Transcript

Interview

CNBC INTERVIEW WITH REP. JOHN DINGELL (D-MI)

SUBJECT: CHRYSLER INTERVIEWERS: TRISH REGAN, SCOTT WAPNER

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MR. WAPNER: Congressman John Dingell of Michigan is back with us now and as we were saying, we're having a little bit of issue with the Congressman's audio. But sir, it's nice to have you first on CNBC to react to the Chrysler bankruptcy, and some comments, I really want to go over these comments you made, calling the hedge funds "vultures." It mirrors comments that we heard yesterday from the governor of your state calling the hedge funds greedy and the president made his comments regarding the speculators.

That's some pretty harsh rhetoric. What's wrong with the hedge funds protecting their investors?

REP. DINGELL: Well, first of all, nothing is wrong with it, but second of all, they have to be seen in perspective, and third of all, that's what these hedge funds are called and if you look at any of the Wall Street publications they're called, vultures or buzzards because they go in to pick the carcasses of corporations and businesses that are either dead or dying.

MR. WAPNER: If the hedge funds are called vultures, sir, and some of the other rhetoric that's come out from some of the other public officials, what would you call the leadership of these companies that are, by many accounts, have a lot of blame to go around here as well as the union?

REP. DINGELL: Well, remember this, I'm just using a Wall Street term on those good-hearted folk and --

MR. WAPNER: Yeah, but there are different types of hedge funds we're talking about here, sir. I mean -- please continue.

REP. DINGELL: Well, I'm not about to argue. Some of them are the most delightful churchgoing people imaginable. Some of them aren't. They're like any other congregation that you can sweep up off the streets, good and bad. But the simple fact of the matter is, they're called buzzards and vultures because that's what they are. They pick carcasses and they do it for a living, and they expect to make money doing it.

MS. REGAN: And isn't it true though that in society just like in nature, you need those animals to make sure that things are healthy, right? I mean, they're just trying to do what they're trying to do. They've got a fiduciary responsibility to their investors to get the best deal they can.

So do you think they did the wrong thing or not?

REP. DINGELL: No, I don't think they did anything wrong. As you said, there's a place in society, there's a place in Nature for buzzards and vultures, and I don't have any bone to pick with them about doing it. It doesn't mean that I have to approve it, and quite frankly, my statement simply indicated that they're going to be dealt with in the bankruptcy courts, at which time, the bankruptcy courts will decide how much they should get.

They've been made, I think, what was a good offer by the administration. They've refused to take it and they have now forced the matter into bankruptcy instead of allowing it to be handled in a way which would better affect and be kinder to the rights of other people like the workers, the dealers, the suppliers and a lot of other people, including the communities in which these businesses are doing.

MR. WAPNER: Yesterday, Governor Granholm told me this was a great day for Chrysler because it would give the automaker the opportunity to restructure and come out stronger.

Do you really believe it's a great day? Do you share those thoughts?

REP. DINGELL: Let's put it this way. It's the best day that we could arrange. Is it a great day? We'll see. History will decide this.

I personally think that it was the best result that we could have achieved for Chrysler, for the workers at Chrysler, for the communities, for the dealers and the suppliers. We'll see whether history says I'm right on that.

MS. REGAN: All right, sir. Thank you so much. We appreciate you taking the time to join us and thanks for your patience as we resolve some of those audio difficulties.

Well, you heard it there, he called them vultures, but I think he made his point, Nature and the economy needs vultures and he has no bone to pick with those hedge funds at all. Actually, I think that's a pretty significant thing he said.

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