Fox News "Your World" - Transcript

Interview

Fox News "Your World" - Transcript

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MR. CAVUTO: As the president tries to soften the blow by, pending Congress' approval, releasing the remaining 350 billion bucks of that bailout dough, the next president hints at big plans for that bailout dough. To New Jersey Democratic Congressman Frank Pallone who says quit debating the dough, just release the dough.

Congressman, good to have you.

REP. PALLONE: You, too, Neil. Good to see you.

MR. CAVUTO: If this dough is not released in the order and timeliness in which you expect, what happens, do you think?

REP. PALLONE: Well, basically, Congress has about 15 days to disapprove the spending of the money. If it doesn't, then the president has the ability to proceed with it. But right now, what we're trying to do is to have some controls. This week in Congress, we're trying to pass a bill introduced by Barney Frank that basically would put some controls on the expenditure of the money, more transparency, more reporting, more help for those who face foreclosure.

I think the feeling in Congress is that we need more controls because there weren't enough with the first 350 billion (dollars).

MR. CAVUTO: I thought you guys were part of the control. I mean, you've dispensed half of that dough, right, 350 billion (dollars) without any controls. Who's to say releasing another 350 billion (dollars) is going to have any better result?

REP. PALLONE: Well, I think there was an effort to try to control it under Bush, but the legislation did not have enough restrictions. And so the idea is to try to tighten it up.

MR. CAVUTO: So why did you vote for it?

REP. PALLONE: Well, I think at the time, people felt, and I still agree, that something needed to be done, and if the president wasn't willing to go along with some of the controls we wanted in it, we were going to let him do it because we feared that if not things would get worse. But now, I think there's an opportunity with the second installment to make it tighter, you know, like have quarterly reports, insist that the foreclosures be looked at and be helped more significantly, in a sense, having learned a lesson, if you will, to make this more regulated.

MR. CAVUTO: But do you worry, Congressman -- and by the way, this is not a dispersion against you, Democrats, Republicans. A pox on everybody. You know, you just throw money at something, there isn't a way to police where it's going, and yet you're for allocating more money to throw at still other problems for which there is still no accountability. And you just seemed to hint that you would be all for releasing that dough pending or not these other restrictions.

REP. PALLONE: Well, Neil, I think that many of us, you know, in many cases here we're kind of guessing what needs to be done. I mean, this is unprecedented. The level of the economic downturn is probably the worst since the Great Depression. So I mean, you try to do your best to come up with some answers as best you can, but nobody has the crystal ball, frankly.

MR. CAVUTO: So why spend for more crystal balls, right?

REP. PALLONE: Well, most economists agree that if we don't do more to, you know, loosen the credit market, to help those with foreclosures, to help community and smaller banks that we will see more job losses and credit will tighten.

MR. CAVUTO: Yeah, but you need guarantees, right, Congressman? You're pretty shrewd with is, but you need guarantees to see that it is going to just that end, right?

REP. PALLONE: Well, Neil, I don't think there are any guarantees, you know. We're in a bad situation.

MR. CAVUTO: So why pay for it?

REP. PALLONE: Well, the feeling is that if we don't do more along this line to help with a bailout, if you will, to help with those who are losing their homes, to help with banks that might go under, you know, smaller ones, that we will see a worse situation. I still feel strongly that the first bailout worked, it's just that more needs to be done.

MR. CAVUTO: I gotcha. All right, Congressman, very good having you on. We'll see how this works out.

END.

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