MSNBC "The Ed Show" Interview - Transcript
Interview
MSNBC "THE ED SHOW" INTERVIEW WITH REP. GARY PETERS (D-MI)
INTERVIEWER: ED SCHULTZ
Copyright ©2009 by Federal News Service, Inc., Ste. 500, 1000 Vermont Ave, Washington, DC 20005 USA. Federal News Service is a private firm not affiliated with the federal government. No portion of this transcript may be copied, sold or retransmitted without the written authority of Federal News Service, Inc. Copyright is not claimed as to any part of the original work prepared by a United States government officer or employee as a part of that person's official duties. For information on subscribing to the FNS Internet Service at www.fednews.com, please email Carina Nyberg at cnyberg@fednews.com or call 1-202-216-2706.
MR. SCHULTZ: Joining me now is Congressman Gary Peters from Michigan. Chrysler is in his district.
You know, Congressman, I know the president is very popular, but I have to say that's about the best case I have ever heard and the best description of how positive bankruptcy can be that I've ever heard.
Are you okay with this?
REP. PETERS: Well, there's no question, Ed, that we wanted bankruptcy to be the absolute last option. As you know, we've been fighting very aggressively to bring everybody together, all the stakeholders together, so that we could avoid bankruptcy. Bankruptcy can be uncertain and it also can drag on. We didn't want to do that.
And certainly incredible progress was made in this last month. You had the UAW stepping forward -- major concessions, major change in contract. As you mentioned, we had the major banks step forward and cut a deal, a deal that was a fair deal, in order to move forward. Everybody had shared sacrifice.
But then it came to a group of hedge funds, hedge funds and some non-bank investment firms, that said, "No, we want even more. We don't believe in that," even though they were getting a good deal. And quite frankly, Ed, I think they made a bad business decision, because now that Chrysler has gone into bankruptcy, they're likely to fare worse than they would have fared had they dealt with the Treasury. They certainly didn't do their shareholders any good. And they certainly did not do the country any good, that's for sure.
MR. SCHULTZ: Congressman, why don't we just write Chrysler another big loan check? I mean, are we blaming hedge funders? The heck with them. I mean, are we going to be behind them or not? I mean, if they're going to be profitable, if the president likes their plan, why not just give them a bigger loan?
REP. PETERS: Well, he is giving a loan, $6 billion -- actually, about $8 billion total money will go into Chrysler. So the president definitely stepped up, said we're going to get through this bankruptcy. Debtor-in-possession financing is a big challenge, especially now in this very tough economic time.
The president has committed to doing that, to provide the funding necessary. And he made some commitments. I had the opportunity to talk to him prior to the announcement, and he was very clear that we're going to be protecting or that he's going to be protecting the retirements of Chrysler workers, health care plans --
MR. SCHULTZ: Okay, that's a key point. I want to stop you right there. You have a commitment from the president of the United States that people are going to get their retirement checks in full on this deal.
REP. PETERS: Yeah, he mentioned that we've got to do everything we can to make sure that we're protecting our retirees, protecting health care, and also a question that I asked him directly as well is that we've got to make sure our auto suppliers have the resources they need, because, as you know, even more people are employed with auto suppliers than they are with the actual auto companies.
And I think the president has made it very clear that he wants to see a viable domestic auto industry. He understands that that is essential for a manufacturing sector. And as we've talked about on this program before, you cannot have a middle class in America without a vibrant manufacturing sector.
MR. SCHULTZ: There's no doubt about it. But the fact is, jobs will be lost over this, correct?
REP. PETERS: Well, in Chrysler's case, I think there's some optimism --
MR. SCHULTZ: Okay.
REP. PETERS: -- in the fact now with Fiat, in its partnership with Fiat, that there will be opportunities to use that capacity that's there to build new cars, new models, round out Chrysler's product line, so, in addition to them being leaders in the mini market -- or the minivan market -- and Jeep, also have small cars, so -- although we've got to get through this rough time right now.
MR. SCHULTZ: Yeah, we do.
REP. PETERS: You're going to see some plants being idled in the short run. But everybody's not selling cars. We've got to start selling cars again.
MR. SCHULTZ: For sure.
REP. PETERS: And once that happens, they ramp up production. You could see it. So I think you've got to look at -- again, I think bankruptcy, we should have tried to avoid it at all costs. There was every effort to do that.
MR. SCHULTZ: But it's --
REP. PETERS: But now that we're there, we've got to move forward.
MR. SCHULTZ: It is the only thing and it is the thing. Thanks, Congressman; appreciate your time tonight.
REP. PETERS: A pleasure.
Source