English subtitles for clip: File:3-30-09- White House Press Briefing.webm

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MR. GIBBS: Good afternoon. Settle down. Settle down.

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I just wanted to say that.

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Q: Major had an idea -- we were
all going to wait 10 minutes,

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give you the two-minute warning
-- (laughter.)

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MR. GIBBS: I do notice

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that class has started a
little early today, and not

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everybody is in their seats. (Laughter.)

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Q: We trusted the
two-minute warning. (Laughter.)

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MR. GIBBS: See? Yes.

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A little fiendish of me to
actually abide by it today,

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wasn't it?

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Well, I have no particular
announcements, so take us away.

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Q: Robert, the President said in
his remarks that he had no

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intention or no desire to run
these auto companies.

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But the way this is moving
along, hasn't the government and

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the administration effectively
set itself up as a proto board

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of directors by all of the
decisions it's going to make

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about how these companies do, in
fact, proceed, or at least the

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veto power it has over these
plans?

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MR. GIBBS: Well, I think what
the determinations that the

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President's Auto Task Force and
that the President have made

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denotes the seriousness by which
companies are asking for

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extraordinary assistance.

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And the President and the task
force, understanding the request

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for that assistance, are going
to take measures and steps to

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protect -- to protect the
taxpayers, as well as seeking

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the best solution to put these
companies back on firmer footing

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and on a path towards long-term
viability.

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I don't think in any way is the
federal government running these

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companies or this industry. I think that's not fair.

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I think you've seen -- if you
want to talk specifically about

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management changes, this is not
the first entity receiving --

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that's received extensive
assistance that has seen a

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change in management or a
composition structure of their

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board of directors.

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Q: Talk about forced -- forced
change.

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MR. GIBBS: Well, without getting
real specific about what's

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happened in the past -- some of
which we weren't here for -- I'm

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not entirely sure that some of
the board and the CEOs of

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companies that we've talked
about extensively in the past

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few weeks altogether might have
gone willingly.

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Q: Just to follow-up, could you
clarify on the warranty issue?

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Because the language is a little
bit unclear in the document you

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put out.

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Does it apply -- the government
backing of these warranties

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apply only to automobiles and
vehicles made

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by Chrysler and GM?

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Or is there a buy-in of some
sort -- other auto makers,

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including foreign makers with
plants here?

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MR. GIBBS: Let me double-check.

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Let me double-check the
specifics of that.

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I will -- we'll get that -- for
everybody to ensure that there's

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no confusion there.

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Yes, sir.

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Q: Thanks.

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A follow-up on cars, a couple
questions on cars, because --

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and related to management as
well.

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Does Wagoner's resignation -- is
that a one-time thing or does

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that suggest a change in
approach from the White House

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for companies that are getting
bailout money?

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MR. GIBBS: Well, again, I think
if you go back and look at --

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let me just say two things.

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One, I think as we -- as we look
at all these individual

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circumstances, I would look at
them exactly that way

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-- as individual.

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Secondly, as I said a moment
ago, I think if you look back at

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-- and again, some of which this
administration wasn't here for

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-- there have been management
and board of directors changes

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in the past.

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Q: But you're tying this to the
plan.

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You're tying this to aid.

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MR. GIBBS: Well, but, again, I
think -- and this was I think

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pretty clear yesterday -- that
this was -- as we've said, this

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was something that the task
force asked for.

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It's something that was agreed
to.

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So I think this notion somehow
of -- been said is a quid pro

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quo is incorrect.

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Q: A follow-up then specifically
on GM.

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Why Fritz Henderson, why did he
end up being the new CEO, when

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he actually designed the plan
that's been rejected

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by the task force?

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Why -- MR. GIBBS: Well, look,
obviously I think there is --

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and I don't want to presuppose
anything going forward because,

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again, to build on the original
question, we're asking for a

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plan over the course of the next
60 days that we think meets the

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test of viability.

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We want to see -- the President
strongly wants to see these

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companies do well, and the
communities that these companies

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are rooted in recover and do
well.

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We've had generations of --
generations of people working in

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some of these plans.

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So in the interim, as the
President said in his remarks,

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that this was a good way to
start anew in this 60-day period

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-- and again, without getting
too far forward as to what might

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happen beyond 60 days.

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Q: But I just don't understand
how it's starting anew if you're

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choosing the CEO who submitted
the plan that's being rejected.

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MR. GIBBS: Well, again, I think
you've got some management

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changes, you've got some board
of director changes, and I think

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you have, we believe, at least
the beginnings

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of a new beginning.

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Q: With him.

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MR. GIBBS: Yes.

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Jake.

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Q: Can you explain to Americans
who heard the President today

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why there seems to be this
disconnect -- a lot of tough

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talk and tough demands from the
administration when it comes to

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the auto industry, but that
doesn't seem to be carried on

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when dealing with Wall Street or
the banking industry.

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MR. GIBBS: Well, I think I --
initially I think the first

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thing I would say to anybody,
including the American people,

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is, understand that we have
taken and are prepared to take

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extraordinary steps to help the
auto industry get back up on its

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feet, to put it on firmer
ground, and to see it return to

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a stronger position; to support
the companies, the workers and

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the communities they're in.

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I think if you look at -- and I
think this question was asked

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over the course of the last,
sort of, 12 hours -- you know,

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the original agreements
contemplated a March 31st

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deadline whereby you would
either do -- you would either

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give additional assistance or
call the loans.

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So I think what the President
and his task force are doing are

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taking a step forward to help
these companies, at the same

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time expecting a term -- a plan
for viability in the future.

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I would also say that the
decisions that are made on any

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entity receiving assistance is
done in a way that we think will

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help stabilize the economy,
create jobs; in some cases, it's

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to protect jobs and create --
and to have a manufacturing

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base, like with GM and Chrysler.

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In others, it's to get lending
moving again.

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But I think that this
administration is rightly

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matching and balancing the
notion for responsibility; at

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the same time, understanding
that we want to be a partner in

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ensuring a strong and viable
auto industry

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as we move forward.

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Q: Just a -- you know, a brief
follow-up.

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On Friday, you had a bunch of
bank CEOs meeting with the

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President in the State Dining
Room and then they came out and

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they talked and obviously it was
a amicable but honest and frank

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meeting; at the same time Rick
Wagoner was being told at the

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Treasury Department, you need to
step down.

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Even if you don't support the
premise of my question, there at

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least is an appearance, optics,
of the administration being nice

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to one industry and tough with
another one.
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MR. GIBBS: Let me --

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Q: That's
what it looks like.

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Whether or not you agree with
it, that's what it looks like.

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MR. GIBBS: Well, let me -- I
guess let me answer -- ask --

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answer your question with a bit
of a question.

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Who represented at the meeting
on Friday, Merrill Lynch

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and Wachovia?

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Q: Because they weren't there, is that right?

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MR. GIBBS: Because those
entities no longer exist.

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I think we've taken some tough
measures and this includes -- on

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different administrations; I'm
not -- we think that the

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decision that the task force and
the President made today present

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the very best opportunity to
move these companies forward, to

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create and protect these jobs,
to ensure that America has a

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strong and viable auto industry
in the future.

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And that's exactly what the
President wants to see.

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I think you heard him talk today
about ensuring -- ensuring

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warranties, ensuring through
additional staffing that people

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will be in auto communities and
talking to workers about

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ensuring that they have the
benefits that they need and that

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the communities that support
these auto industries get what

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they need going forward.

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We've talked about in the past
week or so, help for auto

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supplies who have also been part
of the downturn that has seen

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jobs go away.

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So I think all of the steps that
the administration has taken are

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to put us on a path back toward
viability.

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Yes, sir.

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Q: Two quick questions.

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One, what happens to GM if there
is no deal reached

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by the 60-day window?

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MR. GIBBS: Well, I -- without
getting too far ahead, I think

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what we're -- I think over the
course of the next 60 days, in

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conjunction with the task force,
and GM is going to discuss with

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all of its entities how best to
move forward and how best to

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reevaluate and revamp the
restructuring plan.

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So I think what the President
has asked GM to do today is to

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sit down and go back to that
table, re-plan and come back

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But I would underscore this: The
President -- as I said a second

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again, and we'll certainly make
a determination.

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ago, the President wants to see
a viable, strong auto industry

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that supports the -- that's good
for workers and is good for the

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communities that these workers
live in.

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Q: And secondly, the President
talked a bit about

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sacrifice today.

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He mentioned that 400,000 jobs
have been cut from the industry

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in the past year.

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Michigan has been -- had the
highest unemployment rate in the

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nation for several years now.

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How much sacrifice do you think
that state needs to give in

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order to make these plans work?

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MR. GIBBS: Well, I -- look, I
spent some time last night on

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the phone with the Governor of
Michigan.

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I think anybody that travels in
the Midwest, we've done -- we've

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visited plants that -- some of
which are not operational

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anymore -- over the course of
the campaign.

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The President understands the
tremendous pain that is going

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through these communities and
that have seen the type of

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change that we've seen over the
course of the last couple years

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in this industry as the
recession has hit home.

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The President today, though, set
forward a plan that he believes

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will begin to turn this around,
put these companies back on that

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firm path, and put us back in a
position to be strong again.

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And I think -- look,
the President

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understands the sacrifice.

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His charge to the task force and
the decisions that he made were

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to ensure that the decision he
made doesn't add to, but instead

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-- doesn't add to the pain, but
instead puts us on a path

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towards a different place for
the auto industry that has, in

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many ways, been an icon of our
American economy.

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Dan.

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Q: Mr. Wagoner in his release
said that he was asked to

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"step aside."

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Does he have another role with
the company, or is he leaving

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the company?

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MR. GIBBS: My understanding,
he's leaving the company.

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I think he's also on the board
of directors.

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But my understand that he's
leaving the company.

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Q: Okay.

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Because I was wondering if the
President had had -- you know,

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there was some consideration to
his compensation package, so

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therefore keep him in some role
and not have him

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leave the company.

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MR. GIBBS: I think the best,
honestly, to do is to check with

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GM on that.

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Q: Then on the issue of Fiat,
what was it that the

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administration saw in this
company -- that has not been

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able to do well here in the
United States; has done well in

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turning around its company
overseas but hasn't done

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anything here -- what was it
that the administration saw that

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perhaps could give some
indication that they

235
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could help Chrysler?

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MR. GIBBS: Well, I think you've
touched on it, and that is,

237
00:14:42,834 --> 00:14:51,104
we've seen their ability to
restructure overseas and we

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believe there are, as the
President outlined, strong

239
00:14:54,667 --> 00:14:59,767
commitments to ensuring that
technologies that they've worked

240
00:14:59,767 --> 00:15:05,697
on and developed will be brought
-- will be brought here, and

241
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that some of that technology can
be utilized in the development

242
00:15:11,066 --> 00:15:16,696
and manufacture of more
efficient cars, and to meet a

243
00:15:16,700 --> 00:15:21,600
demand in this market.

244
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Chip.

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00:15:22,667 --> 00:15:25,597
Q: Going back to the bank CEOs,
does the decision on Mr. Wagoner

246
00:15:25,600 --> 00:15:28,300
put them on notice that they
could be asked, any one of them

247
00:15:28,300 --> 00:15:30,730
could be asked to step aside if
the White House is not happy

248
00:15:30,734 --> 00:15:32,464
with their performance?

249
00:15:32,467 --> 00:15:40,937
MR. GIBBS: Well, again, I think
it's imperative or important to

250
00:15:40,934 --> 00:15:44,334
ensure that we look at these
things all individually.

251
00:15:44,333 --> 00:15:48,963
Look, I think that it is safe
for anyone to assume -- and I

252
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don't mean just for CEOs, but, I
mean, obviously we've got, there

253
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are, you know, 300 million
taxpayers who any of us owe it

254
00:16:00,333 --> 00:16:03,303
to, to be responsible with their
money.

255
00:16:03,300 --> 00:16:09,070
We're going to do what needs to
be done to ensure and protect

256
00:16:09,066 --> 00:16:17,896
their money and to use whatever
we use wisely to get our economy

257
00:16:17,900 --> 00:16:24,830
moving again -- whether it is
assistance to a bank that we

258
00:16:24,834 --> 00:16:27,534
hope will turn around and lend
that money to a family or small

259
00:16:27,533 --> 00:16:32,833
business, or whether that's in
helping an icon like GM or

260
00:16:32,834 --> 00:16:40,464
Chrysler get back on its feet
again and get back to the place

261
00:16:40,467 --> 00:16:43,037
that we all know it's capable of
being.

262
00:16:43,033 --> 00:16:45,063
Q: Could you walk us through the
President's decision?

263
00:16:45,066 --> 00:16:49,036
Did he simply accept in total
all of the recommendations of

264
00:16:49,033 --> 00:16:50,263
the task force?

265
00:16:50,266 --> 00:16:54,066
Did he accept some, not accept
others?

266
00:16:54,066 --> 00:16:57,736
And was this an agonizing
decision in the end or was it an

267
00:16:57,734 --> 00:16:59,334
easy decision for him to make?

268
00:16:59,333 --> 00:17:07,163
MR. GIBBS: Well, I think -- in
general I've heard the President

269
00:17:07,166 --> 00:17:14,736
say with some frequency over the
past 68 or 69 or 70 days --

270
00:17:14,734 --> 00:17:16,004
Q: Seventy.

271
00:17:16,000 --> 00:17:17,500
MR. GIBBS: Seventy days, thank
you, Mark.

272
00:17:17,500 --> 00:17:20,300
(Laughter.) I knew I was
grasping -- I was just waiting.

273
00:17:20,300 --> 00:17:22,970
You were supposed to cue a
little earlier.

274
00:17:22,967 --> 00:17:26,137
You know, I've heard him say
frequently over the past 70 days

275
00:17:26,133 --> 00:17:34,763
that the decisions that land in
his lap or the decisions that

276
00:17:34,767 --> 00:17:40,667
are put on his desk to make are
the hard ones.

277
00:17:40,667 --> 00:17:47,567
Easy decisions never get to his
desk or inside of his office.

278
00:17:47,567 --> 00:17:50,297
I don't want to go through the
whole tick-tock except, you

279
00:17:50,300 --> 00:17:52,630
know, the President has spent a
lot of time in the last -- the

280
00:17:52,633 --> 00:17:58,733
last several days in extensive
meetings here.

281
00:17:58,734 --> 00:18:04,904
He's been -- we've had many
meetings as part of his economic

282
00:18:04,900 --> 00:18:13,370
briefings each day on the status
of this and where this is going,

283
00:18:13,367 --> 00:18:17,667
because for, you know, quite
some time, we've known that the

284
00:18:17,667 --> 00:18:20,567
31st of March was out there.

285
00:18:20,567 --> 00:18:27,597
And again, I think what -- the
decision the President has made

286
00:18:27,600 --> 00:18:32,670
and the task force has made, we
believe provide the greatest

287
00:18:32,667 --> 00:18:37,737
opportunity for GM and Chrysler.

288
00:18:37,734 --> 00:18:41,734
And that's -- that's the
decision he made.

289
00:18:41,734 --> 00:18:42,234
Chuck.

290
00:18:42,233 --> 00:18:44,533
Q: I want to follow a little bit
about what Jake asked about with

291
00:18:44,533 --> 00:18:46,933
the CEOs and the difference
between the auto industry and

292
00:18:46,934 --> 00:18:49,564
the banking and the financial
industry.

293
00:18:49,567 --> 00:18:52,237
It's not just on the CEO front
there's been -- there's time

294
00:18:52,233 --> 00:18:54,503
tables, lots more strings that
are -- have been attached to

295
00:18:54,500 --> 00:18:57,100
everything that's happened to GM
and Chrysler, including the

296
00:18:57,100 --> 00:18:59,030
March 31st deadline, the
original deadline.

297
00:18:59,033 --> 00:18:59,563
MR. GIBBS: Right --

298
00:18:59,567 --> 00:19:01,297
Q: The fact
that they had a new viability

299
00:19:01,300 --> 00:19:03,800
plan -- AIG, did they have they
had to submit a viability plan?

300
00:19:03,800 --> 00:19:04,600
MR. GIBBS: Well --

301
00:19:04,600 --> 00:19:06,430
Q: Do they
have strings -- do they have a

302
00:19:06,433 --> 00:19:08,463
timing of when they're supposed
to return money?

303
00:19:08,467 --> 00:19:09,667
MR. GIBBS: Well, two things.

304
00:19:09,667 --> 00:19:16,367
One, as you well know, the
original loan agreements are a

305
00:19:16,367 --> 00:19:21,737
function of either late November
or early December.

306
00:19:21,734 --> 00:19:23,534
Q: But you never brought into --
I mean, they were working --

307
00:19:23,533 --> 00:19:25,033
that was in the transition, it
was clear that --

308
00:19:25,033 --> 00:19:26,503
MR GIBBS: Well, we --

309
00:19:26,500 --> 00:19:27,330
Q: -- you guys were
working with the outgoing

310
00:19:27,333 --> 00:19:27,703
administration.

311
00:19:27,700 --> 00:19:32,470
MR. GIBBS: Well, please don't
underestimate our ability to --

312
00:19:32,467 --> 00:19:33,137
Q: But at the time --

313
00:19:33,133 --> 00:19:37,103
MR. GIBBS:-- change laws as the incoming White House staff --

314
00:19:37,100 --> 00:19:38,130
Q: But they
ran it by you.

315
00:19:38,133 --> 00:19:39,763
MR. GIBBS: -- so as not to get
the -- draw the ire of, say,

316
00:19:39,767 --> 00:19:40,837
White House Counsel.

317
00:19:40,834 --> 00:19:41,804
Q: Did they not run it by you?

318
00:19:41,800 --> 00:19:45,570
MR. GIBBS: Well, being apprised
of something I think is far

319
00:19:45,567 --> 00:19:49,997
different than the full power of
after one places their hand on a

320
00:19:50,000 --> 00:19:55,670
Bible at or around the 20th of
January.

321
00:19:55,667 --> 00:19:59,737
But again, I would also -- I
don't want to be too

322
00:19:59,734 --> 00:20:05,504
foreshadowing or have my tone
measured in any way, but I think

323
00:20:05,500 --> 00:20:11,400
the -- there are viability tests
that are going on right now in

324
00:20:11,400 --> 00:20:19,400
the form of health assessments
for banks that the Federal

325
00:20:19,400 --> 00:20:22,600
Reserve, in conjunction -- that
the Federal Reserve is

326
00:20:22,600 --> 00:20:29,030
conducting to understand a
worst-case economic scenario as

327
00:20:29,033 --> 00:20:33,563
it relates to financial
institutions.

328
00:20:33,567 --> 00:20:35,697
So, look, I think one of the
things that has -- if there is

329
00:20:35,700 --> 00:20:40,030
one thing that has marked some
change is that we are trying to

330
00:20:40,033 --> 00:20:46,603
get a full and complete
assessment of what is out there.

331
00:20:46,600 --> 00:20:51,000
Since the activities of, sort
of, mid-September of last year

332
00:20:51,000 --> 00:20:57,230
and where we find ourselves in
the past 10 weeks is the desire

333
00:20:57,233 --> 00:21:00,303
-- and I've spoken about it a
lot -- of the desire to ensure

334
00:21:00,300 --> 00:21:05,970
that we have a real sense of --
for these financial institutions

335
00:21:05,967 --> 00:21:06,937
-- what we're dealing with.

336
00:21:06,934 --> 00:21:08,664
Q: Why is it that there's the
appearance that there's more

337
00:21:08,667 --> 00:21:10,637
strings for the auto industry
than there has been for the

338
00:21:10,633 --> 00:21:11,803
financial industry --

339
00:21:11,800 --> 00:21:13,730
MR. GIBBS: Again, I think --

340
00:21:13,734 --> 00:21:14,764
Q: -- because --

341
00:21:14,767 --> 00:21:17,667
MR. GIBBS: Well, let's -- I
think for -- I don't know the

342
00:21:17,667 --> 00:21:22,697
exact accounting, but we're I
think talking about more than

343
00:21:22,700 --> 00:21:26,630
$20 billion for these two
companies.

344
00:21:26,633 --> 00:21:29,503
That's no small amount of money.

345
00:21:29,500 --> 00:21:30,970
Q: No, but Citi and Bank of
America and AIG are all --

346
00:21:30,967 --> 00:21:34,697
MR. GIBBS: But again, Chuck,
again as I said earlier, I would

347
00:21:34,700 --> 00:21:44,400
hesitate again to -- I hesitate
to categorically look at these

348
00:21:44,400 --> 00:21:48,700
as a group rather than, in some
ways, as individual cases.

349
00:21:48,700 --> 00:21:52,230
Let's take AIG, for instance.

350
00:21:52,233 --> 00:21:56,663
The mechanism by which the
Secretary -- the Secretary spoke

351
00:21:56,667 --> 00:22:02,197
about last week on Capitol Hill
several times was the ability

352
00:22:02,200 --> 00:22:11,500
and the authority to render some
conclusions for AIG to use some

353
00:22:11,500 --> 00:22:14,670
parts of it as good -- that are
good and doing well, and some

354
00:22:14,667 --> 00:22:17,637
parts of it that aren't and
breaking those up.

355
00:22:17,633 --> 00:22:20,903
But understand, even what we're
talking about under that

356
00:22:20,900 --> 00:22:25,130
authority with AIG, or the
authority of putting some entity

357
00:22:25,133 --> 00:22:28,803
in bankruptcy for the purposes
of, as the President discussed,

358
00:22:28,800 --> 00:22:32,000
breaking apart and liquidating,
is far different than what the

359
00:22:32,000 --> 00:22:35,530
President spoke about and is
contemplating as part of this.

360
00:22:35,533 --> 00:22:40,733
So, again, the path forward for
each of these two auto companies

361
00:22:40,734 --> 00:22:44,264
isn't, in quite -- in all
honesty, comparable because

362
00:22:44,266 --> 00:22:46,566
you've got different
circumstances involved there.

363
00:22:46,567 --> 00:22:52,167
So I hesitate to draw these sort
of easy and discernable --

364
00:22:52,166 --> 00:22:52,936
Q: And on the

365
00:22:52,934 --> 00:22:55,464
bankruptcy, you said --
you just referred to what the

366
00:22:55,467 --> 00:22:56,967
President said.

367
00:22:56,967 --> 00:22:58,697
It's fair to read this
government warranty when the

368
00:22:58,700 --> 00:23:01,400
President stood up there, almost
like an advertisement, and said,

369
00:23:01,400 --> 00:23:04,530
you know, we back all these
cars; come on down to the garage

370
00:23:04,533 --> 00:23:06,503
and pay for this.

371
00:23:06,500 --> 00:23:08,270
Is this a precursor to the
bankruptcy?

372
00:23:08,266 --> 00:23:09,136
MR. GIBBS: No, no, no.

373
00:23:09,133 --> 00:23:18,333
I think it is ensuring with our
backing that no person that goes

374
00:23:18,333 --> 00:23:24,833
out today to buy a Jeep -- which
I love to drive; I used to have

375
00:23:24,834 --> 00:23:29,964
a Jeep -- if somebody wants to
go buy a Jeep, they should not

376
00:23:29,967 --> 00:23:35,237
hesitate to do so because that
warranty will be ensured through

377
00:23:35,233 --> 00:23:36,933
that commitment.

378
00:23:36,934 --> 00:23:42,434
If somebody wants to go buy, as
the President said, the Motor

379
00:23:42,433 --> 00:23:44,563
Trend car of the year, they can
go do that.

380
00:23:44,567 --> 00:23:47,237
Q: And if Chrysler Financial
files for bankruptcy tomorrow,

381
00:23:47,233 --> 00:23:52,063
or in 31 days, but then sells
off all their cars, just sells

382
00:23:52,066 --> 00:23:55,366
them off, the government is
backing up all these warranties?

383
00:23:55,367 --> 00:23:58,197
MR. GIBBS: The government is
ensuring that -- ensuring those

384
00:23:58,200 --> 00:24:01,600
warranties and giving people the
peace of mind and the confidence

385
00:24:01,600 --> 00:24:05,770
to continue purchasing great
American automobiles.

386
00:24:05,767 --> 00:24:08,067
Q: Under -- just who runs that?

387
00:24:08,066 --> 00:24:10,036
What does that --

388
00:24:10,033 --> 00:24:12,133
MR. GIBBS: I
believe out of Treasury and part

389
00:24:12,133 --> 00:24:13,333
of the task force.

390
00:24:13,333 --> 00:24:14,663
But we'll get more details.

391
00:24:14,667 --> 00:24:15,497
Yes, ma'am.

392
00:24:15,500 --> 00:24:16,930
Q: Thank you.

393
00:24:16,934 --> 00:24:19,764
I'd just like to follow up on
some of the -- that has been out

394
00:24:19,767 --> 00:24:20,737
there here.

395
00:24:20,734 --> 00:24:25,134
You've been asked a couple times
whether the actions regarding

396
00:24:25,133 --> 00:24:29,663
these auto companies should be
viewed as something that the

397
00:24:29,667 --> 00:24:34,167
banks should pay attention to
because a similar approach may

398
00:24:34,166 --> 00:24:34,866
come their way.

399
00:24:34,867 --> 00:24:37,937
And you said, no, we should look
at these as individual cases.

400
00:24:37,934 --> 00:24:39,504
So are you essentially --

401
00:24:39,500 --> 00:24:40,130
MR. GIBBS: I guess what I'm

402
00:24:40,133 --> 00:24:43,663
trying to do is, I'm just trying
to -- again, the example I just

403
00:24:43,667 --> 00:24:48,767
used with Chuck, I mean, the
pathway for two auto companies

404
00:24:48,767 --> 00:24:53,467
is, based on the President's
decision today, different.

405
00:24:53,467 --> 00:24:58,137
So I think to take any series of
other entities and put them on

406
00:24:58,133 --> 00:25:01,503
that same scale, those paths may
also be different.

407
00:25:01,500 --> 00:25:02,270
That's all I'm --

408
00:25:02,266 --> 00:25:03,796
Q: There's
certain principles that underlie

409
00:25:03,800 --> 00:25:05,870
all of these decisions, though,
obviously, and there is a

410
00:25:05,867 --> 00:25:08,437
certain willingness or
unwillingness of the

411
00:25:08,433 --> 00:25:11,903
administration to dictate
certain terms as a condition of

412
00:25:11,900 --> 00:25:13,400
receiving federal money.

413
00:25:13,400 --> 00:25:16,170
And so are you saying, by saying
these are individual cases, are

414
00:25:16,166 --> 00:25:19,766
you trying to communicate that
these banks really -- don't

415
00:25:19,767 --> 00:25:23,197
worry about this, this isn't
coming your way?

416
00:25:23,200 --> 00:25:25,900
MR. GIBBS: No, I --

417
00:25:25,900 --> 00:25:27,070
Q: I think
it's a fair question.

418
00:25:27,066 --> 00:25:27,666
MR. GIBBS: It is.

419
00:25:27,667 --> 00:25:31,337
It's a little general -- general
and somewhat nonspecific.

420
00:25:31,333 --> 00:25:35,733
And again, what I'm -- I guess
what I'm asking is, instead of

421
00:25:35,734 --> 00:25:41,634
looking at every entity as the
same entity, I think that's -- I

422
00:25:41,633 --> 00:25:44,303
don't think that's
hypothetically productive.

423
00:25:44,300 --> 00:25:46,870
Q: Well, do you want me to ask
the question that way by

424
00:25:46,867 --> 00:25:49,737
inserting all the names of all
the banks that have received aid

425
00:25:49,734 --> 00:25:52,504
and ask if it would apply to
that?

426
00:25:52,500 --> 00:25:53,600
I mean, would that be more
helpful?

427
00:25:53,600 --> 00:25:55,100
MR. GIBBS: Well, again,
understanding that some of the

428
00:25:55,100 --> 00:25:56,470
circumstances are different.

429
00:25:56,467 --> 00:25:58,497
Q: But why Rick Wagoner and not
Ken Lewis?

430
00:25:58,500 --> 00:26:03,630
MR. GIBBS: Again, some of these
things are -- I don't have

431
00:26:03,633 --> 00:26:06,163
anything specific on Bank of
America.

432
00:26:06,166 --> 00:26:10,336
But again, I just don't want to
be generalistic

433
00:26:10,333 --> 00:26:11,433
across the board.

434
00:26:11,433 --> 00:26:13,933
Q: So, in other words, you really don't want people reading

435
00:26:13,934 --> 00:26:15,934
anything more into this?

436
00:26:15,934 --> 00:26:18,664
MR. GIBBS: I hope people read
into it exactly what I said

437
00:26:18,667 --> 00:26:21,667
rather than reading into it what
they want to read into it.

438
00:26:21,667 --> 00:26:25,837
Q: It's our job to help people--
to explain to people what

439
00:26:25,834 --> 00:26:27,964
is that you're saying, and so I'm trying to make sure

440
00:26:27,967 --> 00:26:29,037
I understand it.

441
00:26:29,033 --> 00:26:30,663
MR. GIBBS: Okay. (Laughter.)

442
00:26:30,667 --> 00:26:33,497
Q: It sounds like
what you're saying is, no, you

443
00:26:33,500 --> 00:26:36,400
don't want us to interpret this
as a sign of things to come

444
00:26:36,400 --> 00:26:36,600
for others --

445
00:26:36,600 --> 00:26:37,270
MR. GIBBS: My hesitancy --

446
00:26:37,266 --> 00:26:38,696
Q: -- and it that's the case, why don't you just say --

447
00:26:38,700 --> 00:26:39,500
MR. GIBBS: My hesitancy --

448
00:26:39,500 --> 00:26:42,770
no, no, my hesitancy is just to
look at every entity the same

449
00:26:42,767 --> 00:26:47,267
way, because, again, the
circumstances by which any

450
00:26:47,266 --> 00:26:51,196
entity is at any certain point
may well be different, even

451
00:26:51,200 --> 00:26:54,900
though it's the same type of
entity, right?

452
00:26:54,900 --> 00:26:58,230
Again, I want to go back to GM
and Chrysler.

453
00:26:58,233 --> 00:27:01,603
On the face, both are auto
companies, right?

454
00:27:01,600 --> 00:27:05,070
Both have found themselves at a
point where they're seeking

455
00:27:05,066 --> 00:27:08,666
additional government
assistance, adding in to the

456
00:27:08,667 --> 00:27:11,037
additional loans that they got
to put them on a path

457
00:27:11,033 --> 00:27:12,263
toward viability.

458
00:27:12,266 --> 00:27:17,236
But again, the examples by which
we're using -- or that the

459
00:27:17,233 --> 00:27:19,633
President has made a
determination about which

460
00:27:19,633 --> 00:27:21,933
direction they're going to go is
different even though they're

461
00:27:21,934 --> 00:27:22,764
both auto industry.

462
00:27:22,767 --> 00:27:24,597
Q: Of course, and I'm not
suggesting the exact same remedy

463
00:27:24,600 --> 00:27:26,870
would apply to any one of these
things, but, again, if you look

464
00:27:26,867 --> 00:27:30,467
at the general case, you have,
say, generically, contracts that

465
00:27:30,467 --> 00:27:34,097
at AIG were unbreakable because
they're legal contracts but for

466
00:27:34,100 --> 00:27:37,430
the UAW, those are contracts
that you fully expect them to

467
00:27:37,433 --> 00:27:39,303
modify if they're going to get
federal assistance.

468
00:27:39,300 --> 00:27:43,630
MR. GIBBS: Well, I think this --
I think many people have made --

469
00:27:43,633 --> 00:27:48,733
I think many people have made
sacrifices, but, again, without

470
00:27:48,734 --> 00:27:51,834
looking through the individual
instances of other entities,

471
00:27:51,834 --> 00:27:54,164
it's hard to make that
generalization.

472
00:27:54,166 --> 00:27:56,036
Mark.

473
00:27:56,033 --> 00:27:59,963
Q: Robert, did you say earlier
that there was no quid pro quo

474
00:27:59,967 --> 00:28:02,167
on Rick Wagoner's departure?

475
00:28:02,166 --> 00:28:03,636
MR. GIBBS: Yes.

476
00:28:03,633 --> 00:28:06,903
Q: Does that mean -- do you
prefer the language, "he was

477
00:28:06,900 --> 00:28:11,430
asked to leave" or "he was told
to leave"?

478
00:28:11,433 --> 00:28:14,863
MR. GIBBS: I would simply put
out that -- exactly what we told

479
00:28:14,867 --> 00:28:21,637
many people yesterday, and that
was, we asked and he agreed.

480
00:28:21,633 --> 00:28:22,233
Yes, sir.

481
00:28:22,233 --> 00:28:26,603
Q: Following up on that, when did the President decide that

482
00:28:26,600 --> 00:28:30,530
Wagoner had to go, and who
specifically asked him to go?

483
00:28:30,533 --> 00:28:34,103
MR. GIBBS: I'm not going to get
into a tick-tock.

484
00:28:34,100 --> 00:28:35,970
Q: Why not?

485
00:28:35,967 --> 00:28:37,697
MR. GIBBS: Because I'm not.

486
00:28:37,700 --> 00:28:40,330
Q: All right.

487
00:28:40,333 --> 00:28:43,363
Why did the President think
Wagoner should go?

488
00:28:43,367 --> 00:28:45,567
MR. GIBBS: I think the President
addressed this in his remarks

489
00:28:45,567 --> 00:28:51,537
today, and that is that, though
he thanked him for his many

490
00:28:51,533 --> 00:28:58,533
years of service to GM, that now
was a time for a new beginning.

491
00:28:58,533 --> 00:29:01,903
Yes.

492
00:29:01,900 --> 00:29:05,170
Q: In distinguishing between
these -- Chrysler and GM, which

493
00:29:05,166 --> 00:29:08,296
you've asked us to do, could you
distinguish them between why

494
00:29:08,300 --> 00:29:10,800
Mr. Wagoner had to go and
Mr. Nardelli did not have to go?

495
00:29:10,800 --> 00:29:13,100
They both filed unviable
business plans.

496
00:29:13,100 --> 00:29:16,100
MR. GIBBS: Well, again, I think
you've got different entities

497
00:29:16,100 --> 00:29:17,970
moving in different directions.

498
00:29:17,967 --> 00:29:21,567
Obviously there's some degree of
-- as the President talked

499
00:29:21,567 --> 00:29:29,197
about, Chrysler needing --
needing partners going forward

500
00:29:29,200 --> 00:29:32,700
in order to I think both meet
the standard of viability as

501
00:29:32,700 --> 00:29:38,370
well as some additional
assistance beyond what the

502
00:29:38,367 --> 00:29:41,367
President denoted is working
capital in that 30-day

503
00:29:41,367 --> 00:29:42,997
period of time.

504
00:29:43,000 --> 00:29:46,130
Again, obviously they are also
two very different companies.

505
00:29:46,133 --> 00:29:48,163
Q: Robert, can I follow-up on
that?

506
00:29:48,166 --> 00:29:49,096
MR. GIBBS: Hold on one second.

507
00:29:49,100 --> 00:29:49,700
I can get back to you.

508
00:29:49,700 --> 00:29:51,000
Yes, sir.

509
00:29:51,000 --> 00:29:53,430
Q: The President talked about how bankruptcy, this

510
00:29:53,433 --> 00:29:55,603
quick pre-approved bankruptcy

511
00:29:55,600 --> 00:29:57,200
might be the best way
to get these companies

512
00:29:57,200 --> 00:29:57,900
a fresh start.

513
00:29:57,900 --> 00:30:01,030
Was there some thought given to
doing that now, or what's going

514
00:30:01,033 --> 00:30:02,733
to be different in 60 days or --

515
00:30:02,734 --> 00:30:06,134
MR. GIBBS: I think in the 60-day

516
00:30:06,133 --> 00:30:13,033
time period you've got the
ability for GM to work with --

517
00:30:13,033 --> 00:30:19,633
work again with all of the
stakeholders that are involved.

518
00:30:19,633 --> 00:30:24,603
The President and the team
certainly have not ruled out the

519
00:30:24,600 --> 00:30:29,330
notion that if -- in order to
ensure that viability moving

520
00:30:29,333 --> 00:30:35,063
forward, they wouldn't preclude
the idea of, as they said, a

521
00:30:35,066 --> 00:30:38,436
quick, largely preplanned
bankruptcy to make some of those

522
00:30:38,433 --> 00:30:40,133
changes. Yes, sir.

523
00:30:40,133 --> 00:30:45,903
Q: Robert, the senior officials
who spoke last night, they said

524
00:30:45,900 --> 00:30:48,030
that as part of the process for
these two companies going

525
00:30:48,033 --> 00:30:51,303
forward, either we were looking
at a bankruptcy or some other

526
00:30:51,300 --> 00:30:54,600
process where the bondholders
would have to take a substantial

527
00:30:54,600 --> 00:30:58,330
reduction in the amount of money
they expected to get back.

528
00:30:58,333 --> 00:31:02,463
One of the very big debt holders
to these two companies right now

529
00:31:02,467 --> 00:31:05,337
is the United States government
and the United States taxpayer.

530
00:31:05,333 --> 00:31:08,103
Is part of why it looks like the
White House is being tougher on

531
00:31:08,100 --> 00:31:11,770
these companies the fact that
that taxpayer money isn't going

532
00:31:11,767 --> 00:31:14,637
to come back, because once you
go into bankruptcy or writing

533
00:31:14,633 --> 00:31:18,033
down debt, the taxpayer money is
also in jeopardy -- unlike the

534
00:31:18,033 --> 00:31:20,733
banks, which claim they're going
to pay it back eventually?

535
00:31:20,734 --> 00:31:23,334
MR. GIBBS: Well, no, I mean,
again, I think part of this is

536
00:31:23,333 --> 00:31:26,663
what's going to happen in this
60-day period.

537
00:31:26,667 --> 00:31:32,597
There may be -- and, look, this
has been covered I think fairly

538
00:31:32,600 --> 00:31:35,170
extensively in the past few
weeks -- there have been

539
00:31:35,166 --> 00:31:43,536
stakeholders that have not been
as willing to come forward and

540
00:31:43,533 --> 00:31:50,133
come to the table and understand
that greater sacrifice, along

541
00:31:50,133 --> 00:31:54,133
with others that are making
sacrifices, is needed.

542
00:31:54,133 --> 00:31:57,133
Q: And are the taxpayers one of
those stakeholders at this point

543
00:31:57,133 --> 00:31:59,233
that's going to have to make an
additional sacrifice?

544
00:31:59,233 --> 00:32:03,033
MR. GIBBS: Well, I -- the
President believes that the

545
00:32:03,033 --> 00:32:06,763
decision will put these
companies on the best path

546
00:32:06,767 --> 00:32:10,237
forward and ultimately putting
them on that stable and strong

547
00:32:10,233 --> 00:32:14,503
path to where they're regaining
market share and they're selling

548
00:32:14,500 --> 00:32:22,700
automobiles is the best way for
the taxpayer to recoup the money

549
00:32:22,700 --> 00:32:25,770
that has been loaned to Chrysler
and GM.

550
00:32:25,767 --> 00:32:26,597
Yes, sir.

551
00:32:26,600 --> 00:32:29,530
Q: For the taxpayer that you're
trying to protect, what can you

552
00:32:29,533 --> 00:32:32,303
tell that person will be
different under the new

553
00:32:32,300 --> 00:32:36,500
management of GM that was not
true yesterday?

554
00:32:36,500 --> 00:32:37,400
MR. GIBBS: Well --

555
00:32:37,400 --> 00:32:40,000
Q: What will
Rick Wagoner's departure mean in

556
00:32:40,000 --> 00:32:42,630
the next 60 days that was not
achievable with him at the top

557
00:32:42,633 --> 00:32:43,433
of the company?

558
00:32:43,433 --> 00:32:48,333
MR. GIBBS: Well, I think what we
are -- what the President has

559
00:32:48,333 --> 00:32:53,963
asked General Motors to do is to
reevaluate the plan that was

560
00:32:53,967 --> 00:32:58,537
presented to the task force and
ultimately to the President, and

561
00:32:58,533 --> 00:33:06,833
to come up with a more workable,
long-term and viable solution,

562
00:33:06,834 --> 00:33:09,534
whereby the President believes
that these companies can be

563
00:33:09,533 --> 00:33:10,433
strong again.

564
00:33:10,433 --> 00:33:15,763
And the President and the task
force determined that this was

565
00:33:15,767 --> 00:33:19,767
an opportunity for a new
beginning at General Motors.

566
00:33:19,767 --> 00:33:26,037
And obviously we believe that
the company will come up with a

567
00:33:26,033 --> 00:33:30,633
strong restructuring plan that
gets this company to viability.

568
00:33:30,633 --> 00:33:36,203
We believe they can be strong --
a strong, viable,

569
00:33:36,200 --> 00:33:37,930
vibrant auto industry.

570
00:33:37,934 --> 00:33:40,064
Q: And the task force and the
President's conclusion, that was

571
00:33:40,066 --> 00:33:42,296
not possible with Mr. Wagoner at
the helm?

572
00:33:42,300 --> 00:33:44,970
MR. GIBBS: I think they believed
that this was a period of time

573
00:33:44,967 --> 00:33:46,467
that represented that new
beginning.

574
00:33:46,467 --> 00:33:49,337
Q: Now, for the warranties, where will that money come from?

575
00:33:49,333 --> 00:33:51,833
Will that money come from TARP,
or will that require a --

576
00:33:51,834 --> 00:33:53,164
MR. GIBBS: I get additional
information --

577
00:33:53,166 --> 00:33:53,596
Q: And can you

578
00:33:53,600 --> 00:33:57,400
tell the cost of those -- the
estimated cost of that will be?

579
00:33:57,400 --> 00:33:59,100
MR. GIBBS: I'll try to get you
as much information as we can.

580
00:33:59,100 --> 00:33:59,600
Margaret.

581
00:33:59,600 --> 00:34:00,330
Q: Thank you.

582
00:34:00,333 --> 00:34:01,603
Two questions.

583
00:34:01,600 --> 00:34:04,430
There are reports that Chrysler
and Fiat have

584
00:34:04,433 --> 00:34:06,033
reached a artnership.

585
00:34:06,033 --> 00:34:07,903
Is that a report that the
President was aware of when he

586
00:34:07,900 --> 00:34:08,770
spoke this morning?

587
00:34:08,767 --> 00:34:10,937
Or is that something that
evolved -- do you have any

588
00:34:10,934 --> 00:34:11,664
details and --

589
00:34:11,667 --> 00:34:18,367
MR. GIBBS: I have not seen -- I mean, I think that --

590
00:34:18,367 --> 00:34:21,237
I want to double-check, but
Chrysler and Fiat have been

591
00:34:21,233 --> 00:34:24,463
working on some partnership for
quite some time.

592
00:34:24,467 --> 00:34:28,897
Obviously the President
discussed in the remarks today

593
00:34:28,900 --> 00:34:34,000
hurdles in the present --
hurdles in the -- I don't want

594
00:34:34,000 --> 00:34:36,130
to use "present," because then
you're just introducing into the

595
00:34:36,133 --> 00:34:42,163
present -- entered into the idea
that they've had for a couple of

596
00:34:42,166 --> 00:34:47,536
months, that still needs to be
worked out in order, in our

597
00:34:47,533 --> 00:34:51,103
view, for the deal to work.
So --

598
00:34:51,100 --> 00:34:52,330
Q: It's not resolved.

599
00:34:52,333 --> 00:34:55,133
MR. GIBBS: I don't think there's
a resolution.

600
00:34:55,133 --> 00:34:58,133
I will get better guidance when
I get off here as to what might

601
00:34:58,133 --> 00:34:59,803
have happened as I was coming.

602
00:34:59,800 --> 00:35:02,170
Q: A quick follow-up, second
question.

603
00:35:02,166 --> 00:35:05,166
The President spoke about
incentives, spoke about

604
00:35:05,166 --> 00:35:07,796
guarantees where people could
feel confident buying

605
00:35:07,800 --> 00:35:08,430
American cars.

606
00:35:08,433 --> 00:35:11,503
But there's one thing he didn't
do directly, which was ask the

607
00:35:11,500 --> 00:35:13,770
American people to buy American
cars.

608
00:35:13,767 --> 00:35:16,897
And I'm wondering, is it a
philosophical issue that he

609
00:35:16,900 --> 00:35:18,870
doesn't feel -- protectionism?

610
00:35:18,867 --> 00:35:19,537
I mean, what's the issue?

611
00:35:19,533 --> 00:35:20,633
MR. GIBBS: No, no, no.

612
00:35:20,633 --> 00:35:23,963
Look, I don't think -- I don't
think the President would have

613
00:35:23,967 --> 00:35:29,497
extended assurances that he did
today if he didn't want to

614
00:35:29,500 --> 00:35:32,070
encourage people to do that.

615
00:35:32,066 --> 00:35:34,766
Again, as we discussed last
week, he's the owner of an

616
00:35:34,767 --> 00:35:37,737
American car; I'm the owner of
an American car --

617
00:35:37,734 --> 00:35:38,664
Q: Is he asking

618
00:35:38,667 --> 00:35:40,737
asking people, for your next
car, please consider buying an

619
00:35:40,734 --> 00:35:41,934
American car?

620
00:35:41,934 --> 00:35:44,004
MR. GIBBS: Absolutely.

621
00:35:44,000 --> 00:35:47,130
And I think he pointed out today
that of the companies that we're

622
00:35:47,133 --> 00:35:51,333
talking about, like I said, he
said in his remarks, he

623
00:35:51,333 --> 00:35:55,733
mentioned -- I don't want to
turn this into an advertisement

624
00:35:55,734 --> 00:36:02,104
-- (laughter) -- you know, Chevy
Malibu was the 2008 Motor Trend

625
00:36:02,100 --> 00:36:06,400
Car of the Year, or North
American Car of the Year.

626
00:36:06,400 --> 00:36:08,270
Q: -- Buick again -- (laughter.)

627
00:36:08,266 --> 00:36:09,536
MR. GIBBS: But I think it bears

628
00:36:09,533 --> 00:36:14,163
mentioning that in the recent
dependability study that was put

629
00:36:14,166 --> 00:36:18,536
out, you know, Buick was tied
for first.

630
00:36:18,533 --> 00:36:22,433
I think it's important -- I
think that's important to

631
00:36:22,433 --> 00:36:26,263
understand because that is
precisely the reason by which

632
00:36:26,266 --> 00:36:29,066
the President came to this
decision and determination,

633
00:36:29,066 --> 00:36:34,766
because we have seen -- and we
shouldn't minimize this -- these

634
00:36:34,767 --> 00:36:41,237
companies have taken big steps
towards restructuring; they've

635
00:36:41,233 --> 00:36:48,463
taken big steps in investing in
the cars of the future, in

636
00:36:48,467 --> 00:36:54,197
showcasing what is possible from
an auto industry -- whether it

637
00:36:54,200 --> 00:36:56,570
relates to electric cars or
something like that.

638
00:36:56,567 --> 00:36:59,437
And we should not in any way
minimize that, or take that

639
00:36:59,433 --> 00:37:04,233
away, that that certainty and
pride from the leadership and

640
00:37:04,233 --> 00:37:09,363
the workers in these plants and
in these communities that have

641
00:37:09,367 --> 00:37:14,497
made that sacrifice and have
worked hard every day, it

642
00:37:14,500 --> 00:37:16,170
shouldn't be minimized.

643
00:37:16,166 --> 00:37:25,096
What the President has
determined is we can make -- we

644
00:37:25,100 --> 00:37:28,930
need some more changes in order
to assure that

645
00:37:28,934 --> 00:37:30,534
viability long term.

646
00:37:30,533 --> 00:37:34,603
The President is invested in
looking for that and he's very

647
00:37:34,600 --> 00:37:39,200
invested in that strong,
long-term auto industry right

648
00:37:39,200 --> 00:37:41,570
here in America. Yes, sir.

649
00:37:41,567 --> 00:37:43,337
Q: Can I ask about -- it's moving onto the bill

650
00:37:43,333 --> 00:37:44,863
signing this afternoon.

651
00:37:44,867 --> 00:37:47,167
Can we move on to another topic
or are you --

652
00:37:47,166 --> 00:37:49,366
MR. GIBBS: I'm game. (Laughter.)

653
00:37:49,367 --> 00:37:50,997
Q: The President this
afternoon is going to sign the

654
00:37:51,000 --> 00:37:52,800
land -- omnibus land bill.

655
00:37:52,800 --> 00:37:56,870
It was posted on the White House
web site about noon on Friday

656
00:37:56,867 --> 00:38:00,167
and you guys announced it in the
weekend guidance on -- about

657
00:38:00,166 --> 00:38:01,696
6:00 p.m., he was going to sign
it.

658
00:38:01,700 --> 00:38:03,500
That's only six hours for
comment before he apparently

659
00:38:03,500 --> 00:38:05,670
made the decision to sign the
bill.

660
00:38:05,667 --> 00:38:09,267
What's the purpose of having the
five-day public comment period

661
00:38:09,266 --> 00:38:11,036
if you're -- you can make these
decisions with

662
00:38:11,033 --> 00:38:12,733
so short comment allowed?

663
00:38:12,734 --> 00:38:22,834
MR. GIBBS: Well, I think that
the President is committed to

664
00:38:22,834 --> 00:38:24,504
and has brought greater
transparency to

665
00:38:24,500 --> 00:38:28,530
this White House.

666
00:38:28,533 --> 00:38:34,833
There are obviously situations
that come up -- especially if

667
00:38:34,834 --> 00:38:38,864
the President is going to go
overseas for a certain period of

668
00:38:38,867 --> 00:38:42,637
time while a bill is there.

669
00:38:42,633 --> 00:38:49,733
We have worked through and are
working through differences in

670
00:38:49,734 --> 00:38:53,904
-- when bills are done in the
House and the Senate, when

671
00:38:53,900 --> 00:38:58,770
conference reports that we know
are going to be -- legislation

672
00:38:58,767 --> 00:39:01,797
ultimately ends up on the
President's desk, putting that

673
00:39:01,800 --> 00:39:05,030
on a web site.

674
00:39:05,033 --> 00:39:08,663
Although not perfect, I think
the President has made a greater

675
00:39:08,667 --> 00:39:14,967
step forward in transparency and
feels like we're making progress

676
00:39:14,967 --> 00:39:18,167
on ensuring the that American
people can see and read what

677
00:39:18,166 --> 00:39:19,396
their President is going to sign
into law.

678
00:39:19,400 --> 00:39:21,600
Q: Do you expect that those
comments will at some point

679
00:39:21,600 --> 00:39:24,770
affect whether he does or
doesn't sign a bill?

680
00:39:24,767 --> 00:39:29,967
MR. GIBBS: Well, that's
certainly -- the intention is to

681
00:39:29,967 --> 00:39:32,697
let the American people make
comments as to what the

682
00:39:32,700 --> 00:39:37,930
President is going to sign and
to take any of that into effect

683
00:39:37,934 --> 00:39:55,804
as we move forward. Yes, sir.

684
00:39:55,800 --> 00:39:58,970
Q: -- on the left, and the
Heritage foundation on the right

685
00:39:58,967 --> 00:40:02,097
have both questioned the
legality of using TARP funds for

686
00:40:02,100 --> 00:40:04,570
the auto bailout.

687
00:40:04,567 --> 00:40:09,037
Just wanted to ask you, since
President Obama had said that he

688
00:40:09,033 --> 00:40:13,363
would consider bankruptcy as an
option, why do you even use more

689
00:40:13,367 --> 00:40:17,797
TARP funds considering that it's
legally questionable?

690
00:40:17,800 --> 00:40:24,300
MR. GIBBS: Well, I'm not a -- I
said earlier I'm not a contracts

691
00:40:24,300 --> 00:40:29,270
lawyer, I happen to also not be
a constitutional lawyer --

692
00:40:29,266 --> 00:40:31,796
mostly because I'm not a lawyer
at all.

693
00:40:31,800 --> 00:40:34,570
(Laughter.)

694
00:40:34,567 --> 00:40:40,037
Though sometimes I'm
sure you think I sound like it.

695
00:40:40,033 --> 00:40:45,303
I think the determination has
been made both in the previous

696
00:40:45,300 --> 00:40:50,830
and in the current
administration that this is

697
00:40:50,834 --> 00:40:55,764
assistance that is legal.

698
00:40:55,767 --> 00:41:02,567
Our goal is to ensure that
taxpayers in any instance where

699
00:41:02,567 --> 00:41:05,737
this money is used feel
confident that it's being done

700
00:41:05,734 --> 00:41:11,004
in a transparent and accountable
way, and one that protects their

701
00:41:11,000 --> 00:41:12,470
interest. Yes, sir.

702
00:41:12,467 --> 00:41:16,137
Q: The President said if Chrysler does not

703
00:41:16,133 --> 00:41:17,003
complete this deal with

704
00:41:17,000 --> 00:41:20,430
Fiat in 30 days there will be no
more taxpayer money.

705
00:41:20,433 --> 00:41:23,433
So if for any reason if Fiat
walks away from the table, does

706
00:41:23,433 --> 00:41:27,103
that mean that the government is
willing to let Chrysler,

707
00:41:27,100 --> 00:41:28,430
essentially, liquidate?

708
00:41:28,433 --> 00:41:31,333
And is the government making any
preparations for what the

709
00:41:31,333 --> 00:41:33,933
economic dislocation impact
would be of a Chrysler

710
00:41:33,934 --> 00:41:35,804
essentially ceasing to exist?

711
00:41:35,800 --> 00:41:38,670
MR. GIBBS: Well, I mean,
obviously I think the 30-day

712
00:41:38,667 --> 00:41:42,437
period -- without getting into
the hypothetical if a Fiat

713
00:41:42,433 --> 00:41:47,663
didn't work -- obviously there
could well be somebody else that

714
00:41:47,667 --> 00:41:49,067
steps forward.

715
00:41:49,066 --> 00:41:52,596
I think it's important to let
the 30 day process play out.

716
00:41:52,600 --> 00:41:57,030
In terms of the second question,
I think it's important to

717
00:41:57,033 --> 00:42:04,263
understand the role that the
President enunciated today for

718
00:42:04,266 --> 00:42:06,836
Ed Montgomery.

719
00:42:06,834 --> 00:42:11,004
We are not waiting for either
some 30- or 60-day window to

720
00:42:11,000 --> 00:42:19,070
elapse before somebody serving
on the task force and working

721
00:42:19,066 --> 00:42:24,066
closely with the team and the
President gets into the

722
00:42:24,066 --> 00:42:26,966
communities and talks directly
to workers that would be

723
00:42:26,967 --> 00:42:33,197
impacted by any event, either
going forward or that has

724
00:42:33,200 --> 00:42:39,230
already resulted in cutbacks or
unemployment.

725
00:42:39,233 --> 00:42:44,133
Obviously there has been changes
in -- through the Recovery and

726
00:42:44,133 --> 00:42:49,803
Reinvestment Plan that ensure
benefits and health care, that

727
00:42:49,800 --> 00:42:52,170
we want to make sure everyone
knows about.

728
00:42:52,166 --> 00:42:57,396
And I think the President spoke
in his remarks about the idea of

729
00:42:57,400 --> 00:43:01,630
evaluating proposals that we've
seen introduced in Congress and

730
00:43:01,633 --> 00:43:08,163
that we've heard from leaders --
like Governor Granholm --

731
00:43:08,166 --> 00:43:12,536
whether it's increased economic
development assistance or

732
00:43:12,533 --> 00:43:19,833
programs to spur the purchase of
automobiles -- that we look into

733
00:43:19,834 --> 00:43:23,764
that immediately, and not again
wait for any

734
00:43:23,767 --> 00:43:26,467
30- or 60 day period.

735
00:43:26,467 --> 00:43:29,537
Q: And will the government
propose or approve any of the

736
00:43:29,533 --> 00:43:31,363
new GM board members that are
going to be named in the next

737
00:43:31,367 --> 00:43:33,067
few months?

738
00:43:33,066 --> 00:43:35,096
MR. GIBBS: I truthfully don't
know the answer to that, but I

739
00:43:35,100 --> 00:43:35,830
can certainly find it.

740
00:43:35,834 --> 00:43:36,804
Yes, ma'am.

741
00:43:36,800 --> 00:43:39,270
Q: Thank you.

742
00:43:39,266 --> 00:43:44,696
There was -- a lot of minorities
and women (inaudible) of the

743
00:43:44,700 --> 00:43:46,830
stimulus package.

744
00:43:46,834 --> 00:43:50,264
They're saying, if you're going
to give the jobs to the unions,

745
00:43:50,266 --> 00:43:54,496
the unionized workers, then
you're going to be leaving out a

746
00:43:54,500 --> 00:43:57,900
lot of the Latinos and a lot of
the women -- they don't belong

747
00:43:57,900 --> 00:43:59,170
to the unions.

748
00:43:59,166 --> 00:44:01,566
What's going to be done for
them?

749
00:44:01,567 --> 00:44:03,837
MR. GIBBS: Relating to -- is
this related to the auto

750
00:44:03,834 --> 00:44:05,464
industry or in general?

751
00:44:05,467 --> 00:44:08,937
Q: In general, with all the
stimulus package, because that's

752
00:44:08,934 --> 00:44:13,664
given mostly to the union
people.

753
00:44:13,667 --> 00:44:15,797
MR. GIBBS: The stimulus?

754
00:44:15,800 --> 00:44:16,370
I'm confused.

755
00:44:16,367 --> 00:44:20,567
Q: Well, the way it is written
and the way the President was

756
00:44:20,567 --> 00:44:25,367
talking before, a lot of the
jobs is going to be going to the

757
00:44:25,367 --> 00:44:29,637
people in charge of the union
workers, and a lot of the --

758
00:44:29,633 --> 00:44:36,963
MR. GIBBS: No, let me -- I think
I get where we're going.

759
00:44:36,967 --> 00:44:46,497
I think the President wants to
create good, high-wage, stable

760
00:44:46,500 --> 00:44:52,600
jobs in this economy, whether it
is construction jobs, whether it

761
00:44:52,600 --> 00:44:59,970
is saving jobs for men and women
in classrooms, whether it's

762
00:44:59,967 --> 00:45:01,867
creating clean-energy jobs,
working on

763
00:45:01,867 --> 00:45:04,837
solar panels and windmills.

764
00:45:04,834 --> 00:45:10,464
The President is focused on
making sure that we are creating

765
00:45:10,467 --> 00:45:14,137
-- saving and creating those
jobs, that we're doing it in

766
00:45:14,133 --> 00:45:16,633
communities that need it.

767
00:45:16,633 --> 00:45:20,103
There are no requirements on
that.

768
00:45:20,100 --> 00:45:24,730
We're looking only to ensure
that the economy grows steadily

769
00:45:24,734 --> 00:45:27,464
and that we put ourselves on a
strong foundation for

770
00:45:27,467 --> 00:45:28,397
that long term.

771
00:45:28,400 --> 00:45:29,400
Thank you, all.

772
00:45:29,400 --> 00:45:30,000
Q: Thank you.

773
00:45:30,000 --> 00:45:30,970
Happy Birthday.

774
00:45:30,967 --> 00:45:31,397
MR. GIBBS: Thank you.