MSNBC "Interview With Senator Charles Grassley" - Transcript

Interview

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MR. SHUSTER: It may be no wonder that AIG feels they need extra security, even some lawmakers for example starting to suggest employees should kill themselves. Listen to what Republican Senator Chuck Grassley of Iowa told a radio station.

SEN. GRASSLEY: The first thing that would make me feel a little bit better towards them, if they followed the Japanese example and come before the American people and take that deep bow and say I'm sorry and then either do one or two things, resign or go commit suicide.

MR. SHUSTER: Senator Chuck Grassley is the top Republican on the Senate Finance Committee. He joins me now live from Capitol Hill, and Senator, it's a pretty harsh statement. Do you stand by it?

SEN. GRASSLEY: I hope you recognize rhetoric and I shouldn't even have to answer that question, but let me go on to say that the Japanese do have a system in place where social demands that, you know, they take responsibility for what they're doing. And so what I've been expressing since way back in October, so this isn't the first time you've heard me say this is that we need to have that deep bow before the American people with some sort of an apology, remorsefulness, contrition, to let people know that they know that they have not run their company right by running it into the ground, and I think the taxpayers are entitled to that and that not giving out bonuses in this instance is just a small recognition that things aren't right and that they owe the taxpayers a lot.

MR. SHUSTER: Senator, I think just about every American would agree with you on that, but I think the issue is because so many Americans have had experience with suicide in their own lives, or in their own families that it's a bit jarring to hear a member of the U.S. Senate to essentially bring it up and so I sort of wonder if you regret that?

SEN. GRASSLEY: I think I've stated that you ought to be able to tell rhetoric when you hear it.

MR. SHUSTER: AIG responded this morning, saying, this remark is very disappointing, but AIG's employees continue to work with poise and professionalism to take care of policyholders and repay taxpayers.

What's your response?

SEN. GRASSLEY: I have not heard anybody with AIG or with any of the other companies that have benefited from more than $700 billion of bailout plus a lot of money coming from the Federal Reserve system that they are responsible for what they did and that they're sorry for what they did and I think that that sort of contrition expressed by American corporate leaders is very, very important.

MR. SHUSTER: Senator Reid, Senate Majority Leader Reid says that Congress is going to retrieve some of that AIG bonus money through legislation. What's your understanding of what Congress could do? And what sort of legislation could be passed without risking lawsuits that might ultimately be more expensive than the bonuses themselves?

SEN. GRASSLEY: Well, not being a lawyer, I'm going to let the courts answer the question about the sanctity of a contract in this particular instance and maybe anything we do in the case of AIG, bonuses may be locking the barn door after the horse is stolen, but I think we need to take a look at what we can do and Senator Baucus, Chairman of the Finance Committee and I as Ranking Member of that committee had a colloquy this morning before our committee on looking into just exactly what we ought to do to change law, to make sure things like this don't happen in the future or what we can do to maybe help crawl back some of that money.

MR. SHUSTER: Senator, it appears that the Obama administration knew about these bonuses, at least the Treasury knew last week. Secretary Geithner went ahead and tried to cut a deal the best he supposedly he thought he could get and then only after the public outrage and the president went back and said, no, he was going to get Secretary Geithner to try to do whatever legally he could.

How much political capital do you think the Obama administration has lost in this episode?

SEN. GRASSLEY: I don't think they've lost any, in fact, I think the president has strengthened his position by saying that he's going to try to recover it.

MR. SHUSTER: All right, interesting point of view.

Senator Chuck Grassley, top Republican on the Senate Finance Committee, and Senator, thanks for coming in today. We appreciate it.

SEN. GRASSLEY: Glad to be with you.

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