MSNBC "The Ed Show" - Transcript

Interview

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MR. SCHULTZ: Home foreclosures are at their highest level in history. Eight million homes are facing foreclosure. But earlier today the Senate rejected an amendment to the housing bill that would likely keep hundreds of thousands of Americans from losing their homes. President Obama has been a long-time supporter of this measure, and the House of Representatives passed similar legislation back in March. So what happened in the Senate today?

To help explain that, here's one of the amendment's supporters, Senator Jeff Merkley of Oregon.

Senator, now, this is a real good kick in the teeth for the taxpayers. We give them money to bail them out, and then, of course, they take their money and use lobbyists to fight legislation that would make it better for us. Have I got that right?

SEN. MERKLEY: Yes. I'm enormously frustrated, because this is such common-sense, win-win legislation to say, "Let's have a lifeline when consumers are unable to reach their mortgage company so that they can hold a conversation that will result in them staying in their home and payments on the loan that will continue," albeit at a smaller rate. But we want to avoid foreclosure. When banks have to foreclose, they lose 50 percent of the value at least. And so this was a win-win that was rejected today, and the frustration is enormous.

MR. SCHULTZ: What are the taxpayers of this country supposed to think when the number two Democrat says that the banks own the Senate? Senator, do they own you?

SEN. MERKLEY: Well, I'll tell you, I voted for working men and women across this country, as 45 of my colleagues did today, because we understand that we have allowed tricky mortgages, deceptive mortgages, to turn the American dream into an American nightmare for millions of families. And now we have the chance to say, "Look, you can't even reach your mortgage company to be able to have a conversation about renegotiating the terms."

The average American should have the same opportunity that a person has with their yacht loan or their vacation loan, vacation house loan. And we're not giving it to them, and we need to.

MR. SCHULTZ: So Jeff, I've got to ask you, how do you feel now about helping some of these banks that can't pass the stress test?

SEN. MERKLEY: Oh, I tell you, I'm -- (laughs) -- I am not giving up on this battle. We have got to win this battle. I want us to go back and we're going to try again. Let's not give up, because we can't afford to give up on behalf of our families. But it does certainly put a little taint in the well, if you will.

MR. SCHULTZ: Keep fighting them, Senator; appreciate your time tonight on "The Ed Show."

SEN. MERKLEY: I sure will. Thank you, Ed.

MR. SCHULTZ: You bet.

SEN. MERKLEY: Thanks so much.

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