CNBC Special Presentation "Wall Street Crisis" - Transcript

Interview

MR. KUDLOW: We are now joined by Congresswoman Linda Sanchez, Democrat from California, one of more than 90 Democrats to vote against the bailout proposal.

Ms. Sanchez, thank you very much for coming on. I just want to ask you, what were your key reasons, from your standpoint, what were your key reasons for voting against the rescue package?

REP. SANCHEZ: Well, while the bill that was presented today was definitely better from the bill that the White House presented a week ago, it still had, I think, some shortcomings. I think there needs to be more teeth in the limitation on executive compensation and I think more accountability. And lastly, I would have liked to have seen the mortgage bankruptcy provision be part of that bill.

MR. HAINES: Do you have any idea what the cost will be to all of us in mortgages if we had that mortgage bankruptcy provision?

REP. SANCHEZ: I don't. I don't think anybody has that.

MR. HAINES: Who's going to write a mortgage if they know that it can be rewritten by a judge.

REP. SANCHEZ: Well, let me just explain that. Right now, there exists this anomaly bankruptcy bill, and there's really no cogent reason why there's a difference between the mortgage on a primary residence and the mortgage on a second home or investment property or even a yacht for that matter. The only asset in bankruptcy that judges are not allowed to modify the mortgages on are those for your primary residence. And let's be honest, most Americans own one piece of property, and that's the home that they live in. And I couldn't, in good conscience, vote to bail out Wall Street without something in there for American families that are at risk of losing their homes.

MR. KUDLOW: Ms. Sanchez, how would you handicap, let's say on a scale of 1 to 10 -- you all are coming back Thursday, from what I gather; correct me if I'm wrong -- 10 means you can get a deal, 1 means no deal is possible? Quick, ma'am, how would you handicap it?

REP. SANCHEZ: To be honest with you, I wouldn't even know how to handicap it. It's very touch and go, you know, from this point forward.

MR. KUDLOW: I'm under the gun.

MR. HAINES: You're under the gun?

MR. KUDLOW: I'm sorry, Congresswoman.

MR. HAINES: This is my line. More on -- Maria, we gotta go.

Source