CNBC Interview - Transcript

Interview

MR. GRIFFETH: We want to talk about the auto bailout, where it stands in the view of our next guest who is about to get after a scale for the number of times he's been with us recently, we welcome back Democratic Congressman Brad Sherman of California who is on Capitol Hill.

Congressman, always good to see you. Thank you again for joining us.

REP. SHERMAN: Good to be with you, Bill.

MR. GRIFFETH: $15 billion, I guess, eight of that goes to GM, seven to Chrysler, Ford doesn't need it right now. You get a car czar. You get a little more teeth than was originally thought.

Is this the bill you had dreamed about?

REP. SHERMAN: Well, I wish it was a lot tougher in a lot of ways, more protection for consumers, more warrants for shareholders and yet at the same time, I can't imagine allowing the automobile industry to go under just as we're getting a new administration that needs to put forward its own economic plan.

MS. HERERA: Congressman, Phil LeBeau, I think, put his finger on it when he said even if this does come to an agreement; it's a long way from being passed.

What does your gut tell you about whether or not when it comes to a vote it will pass?

REP. SHERMAN: I think it would certainly pass on January 5th, but the auto companies don't have that long, I say January 5th because that's when we get seven or eight new Democratic senators. It will pass the House of Representatives. As to the Senate, there it might be subject to a filibuster if it had an up or down vote, it would pass. Whether GOP senators, some of them lame ducks are going to delay the bill through the filibuster rule, I don't know. I think it would be wrong for them to do so if they know that it's going to pass on January 5th. If it's going to pass, it ought to pass this month, not next month.

MR. GRIFFETH: We're about a minute away from this news conference, congressman. Let me just warn you on that.

Let me ask you though. There's provisions for executive pay and lack of bonuses and dividend payouts; nothing on labor. Do you think it should be that specific about the labor agreements involved with these companies?

REP. SHERMAN: Well, I think that the UAW has made concessions. They've indicated they're about to make additional concessions, and I think we have a process for getting those concessions made.

We may -- I haven't looked. There are some elements in the bill that make me think that the car czar would be able to compel or effectively compel even more labor concessions.

MR. GRIFFETH: Who should that be?

REP. SHERMAN: I don't have anybody in mind, but I don't think it should be any of those three executives who drove out to see us yesterday.

MS. HERERA: Should there be a change at the top of GM, and, in fact, the top of all three?

REP. SHERMAN: I'm not a management consultant. I've had only one direct run-in with these folks. They still, at least at Ford, take the position that they will not fly commercial and this bill requires that they not lease or sell or own planes, but allows them to charter all the luxury jets they want.

So my hope is that we get executives who understand the American people, not because luxury is going to kill these companies, but if the executives don't understand --

MR. GRIFFETH: Okay. Unceremoniously, we say goodbye to Congressman Sherman.

Source