MSNBC Interview - Transcript

Interview

MSNBC Interview - Transcript

MSNBC Interview With Senator Jack Reed

Subject: North Korean Missile Launchings and Institutional Financial Regulatory Reform

Interviewer: Savannah Guthrie

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MS. GUTHRIE: Joining us now is Democratic Senator Jack Reed of Rhode Island. He's a member of the Senate Armed Services Committee and the Banking Committee.

So we'll ask you about regulatory reform in a minute. Let's start with Iran, though, Senator. If I might, what's your position on how the president has talked about the situation in Iran? Clearly, there's some criticism coming from conservative corners. But we read an account in The New York Times today that some, including perhaps Secretary of State Hillary Clinton, also wish the president would be a bit more forceful in his support of the protesters there.

SEN. REED: Well, I think the president is handling it quite well. I mean, we're seeing unprecedented sort of demonstrations. They seem to be spontaneous. They seem to be tapping into a -- just a deep, deep sense of uneasiness by the citizens of Iran.

I think that that is something that the president is careful to note. But to go in, I think, explicitly might give the Ahmadinejad and the religious leadership the excuse to crack down further, the excuse to say that this is all an American plot. There are very adroit at sort of turning things to their advantage.

So I think the president is taking a very measured and deliberate approach. And I think we're seeing this continued evolution on the streets, which I think will fundamentally change -- perhaps not a new election, but will change the way the leadership has to deal with a host of internal and foreign policy problems.

MS. GUTHRIE: Let's move to North Korea. There's a report in a Japanese newspaper today that North Korea may fire a long-range ballistic missile, and -- later in July, in the direction of Hawaii, which would be the latest in a series of provocative actions by that country. Are these U.N. sanctions going to be tough enough? Clearly, right now they don't seem deterred at all.

SEN. REED: Well, they're in a succession crisis. Their leader is not well. He's trying to groom a very young son to take over. There's a host of internal reasons why they're being provocative.

These U.N. sanctions are tougher than the ones that were on the books. But the question remains of will they be enforced and respected, particularly by the Chinese. But the Chinese have indicated that, if they signed on the dotted line -- and they did -- they're prepared to support our efforts, which would be to stop these ships, to request the permission to go aboard, and to continue to trail them to a port where we then insist that the local country inspect the ship. So I think it's a step forward in response to what is outrageous provocation by the North Koreans.

MS. GUTHRIE: And real quickly, sir, on financial regulation. It sounds like you basically support what the president is doing, but you think even that this plan could use some modifications. What would you change?

SEN. REED: Well, I think the plan could use some modifications. I think we have to look at the interplay between the suggested financial regulatory council and whatever role the Federal Reserve might play. I think we have to look very closely at what institutional changes the Federal Reserve will make if in fact we give them the authority to be the systemic regulator.

I think we have to be strong on credit rating agencies. I think we also have to, as the president suggested, move towards a more simplified regulatory structure for banks so that there's no regulatory shopping. So I believe the president gave a good foundation. The details, as Secretary Geithner says, has to be worked out. That's our job, together with the agencies and consumer groups.

MS. GUTHRIE: Real quick, can it get done this year? Yes or no?

SEN. REED: I believe it will get done this year. I think it will be sort of later in the year rather than sooner. We're right now engaged in a serious debate on health care reform. That, I think, is going to take us through the next several weeks or more.

But we are committed, the administration to committed to seize this moment. I think the secretary was very eloquent this morning when he said in the past, we've all tried to do things, but we haven't moved quickly enough or aggressively enough. And I hope we don't miss that opportunity.

MS. GUTHRIE: Senator Jack Reed, thank you so much for your time today, sir.

SEN. REED: Thank you.

END.

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