English subtitles for clip: File:6-10-09- White House Press Briefing.webm

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Mr. Gibbs:
Again, in my endeavoring pursuit to bring you special guests,

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today obviously we have
the Secretary of Commerce,

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Gary Locke, who is going to
talk to you guys and give you a

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little bit of an update on
the impending deadline of the

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transition for
digital television,

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which takes place at
the end of this week.

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So, Mr. Secretary.

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Secretary Locke:
Thank you, Robert.

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And today I'm here to remind
Americans about the impending

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national switch to
digital television.

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It's just two days
away, Friday, June 12th.

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In February, President Obama
signed the DTV Delay Act,

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which set June 12th as the
final deadline for television

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broadcasters to transition from
analog to digital signals.

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The President acted out of
concerns for the millions of

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Americans who would have
been left in the dark if the

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conversion had
gone on as planned.

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The Commerce Department and
the FCC have been spearheading

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efforts to ensure all Americans
are ready for the switchover,

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and great progress has been made
in just the last three months

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since Recovery Act funds
were made available.

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But with the deadline
fast approaching,

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some people are
still unprepared,

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some 2.5% of
American households,

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or 2.8 million households.

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Here is what the American people
need to know about the June 12th

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switchover: If you currently
have cable, satellite,

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or some other paid-for
television service,

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you have nothing to worry about.

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You are prepared; you
don't need to do anything,

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and June 12th you'll see no
change in your television

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reception or programming.

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If you have a new television
set purchased, let's say,

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within the last one year,
those new television sets come

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automatically with
a digital tuner.

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So if you have a television
set a year old or newer,

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you're prepared; you
don't need to do anything,

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you don't need to worry.

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But if you have a television set
more than a year old and you're

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not on cable or satellite, and
you're relying basically on free

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over-the-air service,
you are not ready.

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And you will lose your
television service this Friday

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if you don't act now.

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So you have three options:
You can subscribe to cable or

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satellite; you can purchase a
newer television set that has

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these automatic digital
tuners built in;

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or you can purchase
a converter box.

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The Recovery Act provided
Commerce with money to help

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consumers having trouble
affording a digital converter box.

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Millions of households have
applied for and received the $40

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coupons to cover the cost
of these converter boxes.

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And the converter boxes start at
$40 and we mail out two coupons

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per household,
requesting household.

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So that basically means that
with the coupons you get a free

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converter box.

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While coupons are still
available for eligible

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households, it will take some
nine days for us to process and

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send out, first-class
mail, these coupons,

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and so they will not arrive
in time for this Friday's conversion.

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We will have these coupons
available until the end of July

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-- July 31st -- or as
long as supplies last.

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The coupons are good
for 90 days each.

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If you already have a coupon,
please make sure to purchase the

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converter box immediately at a
partnering retail store like

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Target, RadioShack,
Circuit City, or Wal-Mart.

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Take it home, hook
it up right away --

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in fact, you can use these
converter boxes now and receive

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the digital signal now.

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You can get more information
about the transition,

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or apply for coupons, or even
find a nearby retailer selling

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these converter boxes by calling
us toll-free at 1-888-DTV-2009.

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And for those Americans
who need extra assistance,

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the FCC is offering free in-home
installation for consumers in

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most cities.

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They can call the FCC, or if you
have a technical question about

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how to install the
converter boxes,

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call the FCC at 1-888-CALL-FCC.

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They have a robust call center
that's in operation to help

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Americans with the transition
and the call center will be

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fully staffed for many
days even after June 12th.

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For those families already
prepared for the transition,

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make sure to help other
friends and families.

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If they have leftover coupons,
unused coupons that are still

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valid, feel free to share them
with other individuals so they

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can rush out and
get a converter box.

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We will continue to reach out to
the most vulnerable communities

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to ensure as many Americans as
possible are ready for this

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switch to digital television.

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We want to make sure that
families are able to not only

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receive their
favorite programming,

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but more importantly, to receive
news broadcasts of emergency

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alerts, impending storms, and
any other emergency situation

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within their community.

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It's very important that
communities and people

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throughout our nation have the
information they need to respond

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in times of emergencies.

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And I want to thank you now,
and I'd be happy to take any

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questions you have about the
transition or the progress that

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we've made in decreasing the
number of families who are unprepared.

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The Press:
Can you tell us what kind of planning you have in place for

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the families who, come Friday or
Saturday, despite your efforts,

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will not have gone through this
and will lose their service?

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Secretary Locke:
Well, the television stations, even though the screens will go

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blue, will have telephone
numbers on the bottom --

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either our telephone number,
our toll free number,

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1-888-DTV-2009, where they can
continue to request the coupons;

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and also telephone
numbers for the FCC.

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The Press:
This will come up
-- the TV turns on,

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this will come on their screen?

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Secretary Locke:
It's a rolling conversion starting midnight Thursday

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night, 12:01 a.m. Friday.

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Some stations will start
converting to digital throughout the day.

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But by the end of the day all
television stations must be

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exclusively on digital.

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The Press:
And do you have a sense of how many people will be affected,

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who will not have
converted by now?

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Secretary Locke:
Well, as of this last Sunday we had some 2.7 million households

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-- excuse me, 2.8
million households,

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roughly 2.5% of all households in America with television sets

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that are not prepared.

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And when we say "not prepared,"
we mean who don't have at least

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one television set that can
continue to receive news.

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I mean, in our own household
we have several television sets

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that are on cable, that
are hooked up to cable,

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but I also have an old
television set in the garage

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that's not hooked up and will
not be able to receive the

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broadcast after June 12.

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But we are prepared because our
other television sets have cable

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and therefore not affected.

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So we're talking about families
that are completely unprepared,

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that have neither
the converter box,

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don't have a new television
set, or don't have cable or satellite.

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We call them "totally
unprepared."

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And on June 12th, if they don't
do something between now and

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then, they will get
nothing but a blue screen.

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The Press:
Are there particular pockets of the country where families are

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unprepared, or are they
scattered throughout the country?

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Secretary Locke:
It's actually -- we're finding that it's primarily on the West

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Coast and the Southwest that are more unprepared than the rest of

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the country.

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Los Angeles, while having a
small percentage of families

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unprepared, a small percentage
of a huge market is about a

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quarter-million households
that are unprepared.

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We're also finding that it's
-- ethnic groups are more

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unprepared than the general population: African American,

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Hispanic, almost twice
the national average;

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Asian Americans just slightly
above the national average.

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Surprisingly enough,
seniors are prepared.

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And it's the younger generation,
households of under 30 that are

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also more unprepared than
the national average.

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Maybe it's because they rely on
new forms of media for news and

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programming and don't care
about television anymore.

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(laughter)

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Mr. Gibbs:
None of the
newspaper guys are --

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(laughter)

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Secretary Locke:
So you new media people,
you must be loving it.

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The Press:
Don't watch the news tonight.

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Secretary Locke:
The Recovery Act
provided $650 million.

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And we have more than enough
coupons to handle all the

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unprepared households if they
were to ask for coupons.

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We also have several million
coupons that have not yet been

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redeemed, but we've also
provided funds to the FCC for

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outreach call center support.

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But we've really been pleased
with the amazing interest and

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activity in just the last week.

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The last few days we've been
receiving requests from over

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100,000 households
asking for coupons.

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So we're seeing a dramatic drop
in the number of unprepared families.

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When the President took
office, there were some --

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almost 6 million
households, 6.8 --

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excuse me, almost 7 million
households not prepared --

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6.8 million, to be exact.

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That's roughly 5.9% of the households not prepared.

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And that's now down to 2.5%,
or 2.8 million households.

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The Press:
You had said that this --
there was an ethnicity --

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Hispanics and African Americans.

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Is this a language -- so is
this a language issue that --

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has there been enough done
on the language front?

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Secretary Locke:
Well, it could be
a language issue.

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Ethnic minorities,
for whatever reason --

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it may be due to language --
are not as prepared as others.

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But we've been reaching
out using Hispanic --

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Telemundo, Univision; held a
press conference with Mayor

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Villaraigosa in Los Angeles,
Mayor Kevin Johnson in Sacramento.

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And since those press
conferences and those special

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events -- I've conducted
more than 50 events --

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interviews, on-air radio
shows, television shows,

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working with the print media -- the activity and request for

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coupons have really spiked.

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But we're using a lot of free
media as well as paid media.

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And I want to thank all the
partners in the television

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industry and broadcasting
industry for getting the word out.

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The Press:
Mr. Secretary, isn't it possible that some just decided not to do

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it, and isn't that okay?

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Secretary Locke:
That's true.

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As long as -- we believe
that there's almost universal

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understanding of it.

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We know that there will be some
people who don't want to make

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the conversion or maybe they'll
wait until they get a new

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television set, or
maybe will just --

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don't want it for now.

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And we do know that there are a
lot of people who procrastinate,

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whether it's paying taxes
or, when we were in college,

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studying for exams -- or not --

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(laughter)

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-- and getting by.

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But, again, just in the last
few days more than 100,000

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households have been
calling asking for coupons.

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The Press:
Mr. Secretary, can you
explain how you're getting

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these statistics?

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Like how do we know that 2.5%
of TV households don't have it?

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Secretary Locke:
It's from Nielsen data and they collect the data almost every

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week or every other week.

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And the data that I've given
you is the data as of Sunday,

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this past Sunday.

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The Press:
What about people
who are prepared,

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hook up the converter box, but
still don't get a picture?

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How many of those
might there be?

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Secretary Locke:
It could be a problem of reception because for digital

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it's all or nothing.

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Using the old analog signals,
if you had a building that was

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blocking the airwaves
you might get ghosting,

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and if you were pretty far from
the transmission tower the

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signal might be weak and you
might not have a very good

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picture, it might
be very grainy.

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With digital it's
all or nothing.

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And so there may be some problems and households may need

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to buy a little antenna that they could attach to the

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converter box as well.

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But if people are having some
questions they should call the

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FCC, and it's toll
free at 1-888-CALL-FCC.

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And if people are having some
problems with installation

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understanding, the FCC has
free in-home consultation and

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installation service.

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The Press:
May I ask on a
different subject, the WTO?

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The Russians and
their two neighbors,

237
00:12:33,133 --> 00:12:36,933
Kazakhstan and Belarus, have
indicated that they now want to

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00:12:36,934 --> 00:12:42,034
join the WTO as a union other
than individual nations.

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00:12:42,033 --> 00:12:43,233
Have you heard about that?

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00:12:43,233 --> 00:12:44,963
Do you have anything
to say about that?

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00:12:44,967 --> 00:12:46,297
Secretary Locke:
No, I had not heard that.

242
00:12:46,300 --> 00:12:47,830
I'm sorry, I had not heard that.

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00:12:47,834 --> 00:12:48,864
All right, thank you.

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00:12:48,867 --> 00:12:57,597
The Press:
Thank you, Mr. Secretary.

245
00:12:57,600 --> 00:13:01,030
Mr. Gibbs:
Let me make a couple of other short announcements before we

246
00:13:01,033 --> 00:13:06,103
get going.

247
00:13:06,100 --> 00:13:09,500
Earlier today the President
called President Sulayman to

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00:13:09,500 --> 00:13:12,770
congratulate him on Lebanon's
successful parliamentary

249
00:13:12,767 --> 00:13:16,167
elections; commended Lebanon's
interior ministry and security

250
00:13:16,166 --> 00:13:18,996
services for their hard work.

251
00:13:19,000 --> 00:13:22,230
President Obama reiterated his
strong commitment to Lebanon's

252
00:13:22,233 --> 00:13:25,563
sovereignty and independence,
and indicated that he looked

253
00:13:25,567 --> 00:13:28,397
forward to working with the
President to strengthen the

254
00:13:28,400 --> 00:13:31,370
relationship between the
United States and Lebanon.

255
00:13:31,367 --> 00:13:35,867
Finally, President Obama noted
that his Special Envoy for

256
00:13:35,867 --> 00:13:37,197
Middle East Peace,
George Mitchell,

257
00:13:37,200 --> 00:13:40,030
would be in Lebanon on Friday
and looked forward to meeting

258
00:13:40,033 --> 00:13:42,563
with the President.

259
00:13:42,567 --> 00:13:50,437
Secondly, the President will
travel on Monday, to Chicago,

260
00:13:50,433 --> 00:13:55,003
to address the annual meeting
of the American Medical Association.

261
00:13:55,000 --> 00:13:58,300
He'll start with the recognition
that the health care system

262
00:13:58,300 --> 00:14:03,470
status quo is unsustainable
and he'll outline the case for

263
00:14:03,467 --> 00:14:05,267
health care reform.

264
00:14:05,266 --> 00:14:07,966
He'll make clear why we can't
afford to wait another year or

265
00:14:07,967 --> 00:14:11,267
another administration to bring
down costs that are crushing

266
00:14:11,266 --> 00:14:13,966
families, businesses,
and government.

267
00:14:13,967 --> 00:14:16,837
In the speech the President will
discuss the reasons why past

268
00:14:16,834 --> 00:14:19,834
efforts have failed and he'll
address the consequences of

269
00:14:19,834 --> 00:14:22,434
failing to act again this year.

270
00:14:22,433 --> 00:14:24,663
He'll lay out plainly what
health care reform will mean for

271
00:14:24,667 --> 00:14:27,767
American families and their
doctors and what it won't.

272
00:14:27,767 --> 00:14:30,097
The President will also address
the importance of making sure

273
00:14:30,100 --> 00:14:32,670
that reform doesn't
add to our deficit,

274
00:14:32,667 --> 00:14:34,867
and what we can do to strengthen
what works in our health care

275
00:14:34,867 --> 00:14:40,797
system and to fix what's
broken so that we can build --

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00:14:40,800 --> 00:14:45,530
what we build provides the best
care in the world at the lowest cost.

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00:14:45,533 --> 00:14:48,803
And then, finally, I would add,
not too long before coming out

278
00:14:48,800 --> 00:14:54,100
here, probably about 1:55 or so, I had an opportunity to speak

279
00:14:54,100 --> 00:14:58,470
with the President about the shooting at the Holocaust Museum

280
00:14:58,467 --> 00:15:03,167
today, informed him
of the situation,

281
00:15:03,166 --> 00:15:07,496
gave him the details that we had been given via that Situation Room.

282
00:15:07,500 --> 00:15:12,430
He asked about the condition
of the security guard.

283
00:15:12,433 --> 00:15:18,003
So he is aware of the
incident this afternoon.

284
00:15:18,000 --> 00:15:19,470
And with that, Mr. Feller.

285
00:15:19,467 --> 00:15:20,797
The Press:
Two topics, Robert, thank you.

286
00:15:20,800 --> 00:15:22,530
First of all,
following up on that,

287
00:15:22,533 --> 00:15:24,603
did the President have
any other reaction?

288
00:15:24,600 --> 00:15:26,130
How would you characterize --

289
00:15:26,133 --> 00:15:31,403
Mr. Gibbs:
I mean, obviously -- I walked in and told him there had been a

290
00:15:31,400 --> 00:15:33,970
shooting at the
museum -- obviously,

291
00:15:33,967 --> 00:15:41,897
concerned and concerned for the security guard that appears to

292
00:15:41,900 --> 00:15:44,330
have been hurt.

293
00:15:44,333 --> 00:15:47,903
I gave him, Ben, mostly a
factual briefing of the facts as

294
00:15:47,900 --> 00:15:51,770
we knew it, or knew them at that
point, and that's about it;

295
00:15:51,767 --> 00:15:57,067
obviously, saddened
by what has happened.

296
00:15:57,066 --> 00:15:59,836
The Press:
And in terms of -- can you just give us a little bit more detail

297
00:15:59,834 --> 00:16:03,864
about the White House involvement in a tragedy like this?

298
00:16:03,867 --> 00:16:04,937
How does coordination work?

299
00:16:04,934 --> 00:16:06,764
Is it through the Homeland
Security Council?

300
00:16:06,767 --> 00:16:14,097
Mr. Gibbs:
Well, we get regular updates through the Situation Room.

301
00:16:14,100 --> 00:16:18,070
We're in contact with and get
updates from the Homeland

302
00:16:18,066 --> 00:16:21,936
Security Council and other
agencies like the FBI.

303
00:16:21,934 --> 00:16:24,204
So I assume throughout the
day we'll continue to get

304
00:16:24,200 --> 00:16:30,500
information about -- facts and what's happened at the museum.

305
00:16:30,500 --> 00:16:33,570
The Press:
I also want to ask you a couple of quick things on health care.

306
00:16:33,567 --> 00:16:36,037
Can you give us a progress
report on the President's

307
00:16:36,033 --> 00:16:39,203
meeting today with the senators?

308
00:16:39,200 --> 00:16:40,530
How does the White
House think it went?

309
00:16:40,533 --> 00:16:42,033
Was anything accomplished today?

310
00:16:42,033 --> 00:16:46,933
Mr. Gibbs:
Well, I think the President continued to discuss with

311
00:16:46,934 --> 00:16:50,364
important and leading members of
Congress on health care reform

312
00:16:50,367 --> 00:16:52,137
the challenges that
we have before us.

313
00:16:52,133 --> 00:16:56,703
Obviously, he'll travel tomorrow
to Green Bay and have a town

314
00:16:56,700 --> 00:16:59,130
hall meeting on this.

315
00:16:59,133 --> 00:17:02,963
We just announced, obviously,
the speech in Chicago on Monday.

316
00:17:02,967 --> 00:17:07,837
The President is pleased that
what appears to be happening is

317
00:17:07,834 --> 00:17:10,664
making progress.

318
00:17:10,667 --> 00:17:12,867
I think you'll hear him both
tomorrow and Monday, as I said,

319
00:17:12,867 --> 00:17:16,037
lay out the strong case for
health care reform to bring

320
00:17:16,033 --> 00:17:20,403
about some relief for families
and small business from the cost

321
00:17:20,400 --> 00:17:23,200
that they're seeing rise
each and every year.

322
00:17:23,200 --> 00:17:26,300
The Press:
Senator Baucus said afterwards here on the driveway that

323
00:17:26,300 --> 00:17:27,770
everything remained an option.

324
00:17:27,767 --> 00:17:29,667
He said "We are all flexible
on all these points --

325
00:17:29,667 --> 00:17:31,337
we are, the President is."

326
00:17:31,333 --> 00:17:32,903
Is that an accurate statement?

327
00:17:32,900 --> 00:17:38,300
Mr. Gibbs:
The President is anxious to let the legislative process work.

328
00:17:38,300 --> 00:17:41,630
I think you've all had a chance
to cover the letter that he sent

329
00:17:41,633 --> 00:17:47,033
last week regarding the
principles that he has for

330
00:17:47,033 --> 00:17:48,433
meaningful health care reform.

331
00:17:48,433 --> 00:17:52,863
And we're going to continue to
work that process to ensure that

332
00:17:52,867 --> 00:17:55,697
progress is on the right path.

333
00:17:55,700 --> 00:17:56,570
Yes, sir.

334
00:17:56,567 --> 00:17:57,897
The Press:
A couple of financial questions.

335
00:17:57,900 --> 00:18:00,970
First, how confident is the
administration that GM's

336
00:18:00,967 --> 00:18:04,067
bankruptcy restructuring will
proceed smoothly now that the

337
00:18:04,066 --> 00:18:07,796
Supreme Court decided not to
intervene with Chrysler and the

338
00:18:07,800 --> 00:18:10,100
sale to Fiat has gone through?

339
00:18:10,100 --> 00:18:13,800
Mr. Gibbs:
Well, look, I think it
gives everybody confidence.

340
00:18:13,800 --> 00:18:17,970
Obviously, we had great
confidence in the restructuring

341
00:18:17,967 --> 00:18:21,967
plan that had been put together
as part of the deal that's now

342
00:18:21,967 --> 00:18:25,167
been finalized with
Chrysler and Fiat.

343
00:18:25,166 --> 00:18:33,696
It gives Chrysler a restructured
opportunity to move forward.

344
00:18:33,700 --> 00:18:37,700
And it's our strong hope that
the same happens relatively

345
00:18:37,700 --> 00:18:39,170
quickly for GM.

346
00:18:39,166 --> 00:18:41,896
I think the time frame
is slightly longer.

347
00:18:41,900 --> 00:18:45,870
We've discussed a 60- to 90-day
period rather than a 30- to

348
00:18:45,867 --> 00:18:47,667
60-day period for Chrysler.

349
00:18:47,667 --> 00:18:50,137
Obviously, GM's a little
bit bigger company.

350
00:18:50,133 --> 00:18:55,963
But we have confidence that the
process that's been put forward

351
00:18:55,967 --> 00:18:58,067
will work its way
through the system.

352
00:18:58,066 --> 00:18:59,696
We understand, as
I said yesterday,

353
00:18:59,700 --> 00:19:06,930
that people are entitled to
their day in court if they have

354
00:19:06,934 --> 00:19:11,634
grievances about some situations
surrounding the bankruptcy.

355
00:19:11,633 --> 00:19:16,103
But the President and the Auto
Task Force strongly believe this

356
00:19:16,100 --> 00:19:21,900
gives car companies,
communities, workers,

357
00:19:21,900 --> 00:19:24,870
and investors the
best opportunity --

358
00:19:24,867 --> 00:19:28,237
and taxpayers -- the best opportunity moving forward.

359
00:19:28,233 --> 00:19:32,533
It's what's kept plants open;
it's what's kept people on the job.

360
00:19:32,533 --> 00:19:36,433
And I think we are heartened by
what happened at the Supreme

361
00:19:36,433 --> 00:19:39,633
Court and hope to see the same
follow for General Motors.

362
00:19:39,633 --> 00:19:43,333
The Press:
And on executive compensation, will the administration be

363
00:19:43,333 --> 00:19:48,563
naming Kenneth Feinberg as the
pay czar to oversee the packages

364
00:19:48,567 --> 00:19:51,237
-- pay packages for executives and companies that are receiving

365
00:19:51,233 --> 00:19:52,163
bailout money?

366
00:19:52,166 --> 00:19:55,466
And how much of the decision on
these measures was driven by the

367
00:19:55,467 --> 00:20:00,037
President's desire to quell
public anger about compensation

368
00:20:00,033 --> 00:20:02,303
news that has come out recently?

369
00:20:02,300 --> 00:20:08,400
Mr. Gibbs:
Well, look, Ken Feinberg is going to assume the role of

370
00:20:08,400 --> 00:20:16,500
special master that will allow
him to review for soundness,

371
00:20:16,500 --> 00:20:21,030
appropriateness, and to limit
risk relating to compensation

372
00:20:21,033 --> 00:20:26,403
packages for those companies
that are either receiving

373
00:20:26,400 --> 00:20:31,000
extraordinary assistance
or might in the future.

374
00:20:31,000 --> 00:20:33,970
I think obviously this is an
individual that has great

375
00:20:33,967 --> 00:20:41,097
experience in mediation
and in things that are --

376
00:20:41,100 --> 00:20:43,470
these type of things
that are important.

377
00:20:43,467 --> 00:20:48,437
And I think that obviously this is a topic that the President

378
00:20:48,433 --> 00:20:50,433
has spoken about.

379
00:20:50,433 --> 00:20:54,233
I don't know if the factsheets
have all gone out from Treasury

380
00:20:54,233 --> 00:21:01,133
yet, but there's additional
legislative efforts that we will

381
00:21:01,133 --> 00:21:05,863
undertake, as you heard
the President talk about.

382
00:21:05,867 --> 00:21:06,797
Yes, sir.

383
00:21:06,800 --> 00:21:07,970
The Press:
A couple questions.

384
00:21:07,967 --> 00:21:11,637
The shooting today at
the Holocaust Museum,

385
00:21:11,633 --> 00:21:14,033
combined with the
shooting of Dr. Tiller,

386
00:21:14,033 --> 00:21:17,363
as well as the shooting of the
military recruiter in Little

387
00:21:17,367 --> 00:21:23,467
Rock -- is the White House at all concerned that there is some

388
00:21:23,467 --> 00:21:27,467
sort of trend of political
violence or domestic terrorism

389
00:21:27,467 --> 00:21:31,167
going on?

390
00:21:31,166 --> 00:21:37,266
Mr. Gibbs:
Jake, I would want to ask somebody in law enforcement if

391
00:21:37,266 --> 00:21:39,936
they see links such as that.

392
00:21:39,934 --> 00:21:45,504
I don't think it would be wise
for me to surmise something like that.

393
00:21:45,500 --> 00:21:52,630
I think, as the President
said in a statement after the

394
00:21:52,633 --> 00:22:04,033
shooting of Dr. Tiller, that
regardless of disagreeing or

395
00:22:04,033 --> 00:22:07,603
disparate viewpoints
obviously in our society,

396
00:22:07,600 --> 00:22:15,470
this is not in any way the type
of action that anybody wants to

397
00:22:15,467 --> 00:22:21,267
see in settling even the
most vehement disputes.

398
00:22:21,266 --> 00:22:25,996
But it's hard for me to surmise
without having a more in-depth

399
00:22:26,000 --> 00:22:27,900
conversation with
law enforcement.

400
00:22:27,900 --> 00:22:30,700
The Press:
This is really just out of curiosity more than anything --

401
00:22:30,700 --> 00:22:35,830
how do you guys decide which
acts of violence prompt a White

402
00:22:35,834 --> 00:22:40,064
House response and
which ones won't?

403
00:22:40,066 --> 00:22:43,666
There was a statement that
went out about Dr. Tiller.

404
00:22:43,667 --> 00:22:48,597
How was the decision made that
that would get a presidential

405
00:22:48,600 --> 00:22:54,070
statement whereas the military
recruiter in Arkansas shooting would not?

406
00:22:54,066 --> 00:22:57,396
Mr. Gibbs:
Well, I believe a statement did go to many stations in Arkansas

407
00:22:57,400 --> 00:22:58,600
regarding that.

408
00:22:58,600 --> 00:22:59,600
The Press:
Oh, okay, it did?

409
00:22:59,600 --> 00:23:00,530
Okay.

410
00:23:00,533 --> 00:23:03,763
And just about
executive compensation,

411
00:23:03,767 --> 00:23:06,767
what's the response of the White
House to the pushback from

412
00:23:06,767 --> 00:23:11,337
business groups that the federal
government should have no role

413
00:23:11,333 --> 00:23:16,603
in deciding how their executive
compensation is delivered;

414
00:23:16,600 --> 00:23:20,500
whether it's a nonbinding
resolution or not,

415
00:23:20,500 --> 00:23:22,630
it's not the job of the
government to tell them how to

416
00:23:22,633 --> 00:23:23,803
run their companies?

417
00:23:23,800 --> 00:23:29,800
Mr. Gibbs:
Well, look, obviously this is split up into at least three

418
00:23:29,800 --> 00:23:31,170
different baskets, I'd say.

419
00:23:31,166 --> 00:23:35,296
You have the congressional
amendment --

420
00:23:35,300 --> 00:23:40,300
the Dodd amendment -- that passed covering for the top five

421
00:23:40,300 --> 00:23:44,570
corporate officers and the next highest 20 paid employees for

422
00:23:44,567 --> 00:23:49,467
all companies receiving some measure of TARP assistance that

423
00:23:49,467 --> 00:23:51,897
governs limits on bonuses.

424
00:23:51,900 --> 00:23:52,930
That's one.

425
00:23:52,934 --> 00:23:57,234
That was congressional intent.

426
00:23:57,233 --> 00:24:01,303
I think you'll see from the fact
sheets that will soon go out --

427
00:24:01,300 --> 00:24:06,870
my apologies that
they haven't --

428
00:24:06,867 --> 00:24:11,667
there's a bit of an expansion
from what is in the

429
00:24:11,667 --> 00:24:17,167
congressionally mandated
amendment that gives for the

430
00:24:17,166 --> 00:24:19,796
seven current companies
receiving extraordinary

431
00:24:19,800 --> 00:24:27,070
assistance the ability to not
simply look at the top five plus

432
00:24:27,066 --> 00:24:33,736
20, but indeed the top 100,
in order to judge, as I said,

433
00:24:33,734 --> 00:24:35,564
the soundness, the
appropriateness,

434
00:24:35,567 --> 00:24:43,867
and whether or not the risk is
being taken into account in this.

435
00:24:43,867 --> 00:24:47,397
Lastly, the President has
supported as a member of the

436
00:24:47,400 --> 00:24:54,130
Senate and continues to support
efforts that are nonbinding

437
00:24:54,133 --> 00:24:56,963
shareholder efforts
to provide --

438
00:24:56,967 --> 00:25:01,067
so that shareholders are
empowered to provide some say on

439
00:25:01,066 --> 00:25:04,766
the compensation for the
managers for the companies for

440
00:25:04,767 --> 00:25:07,967
which they invest.

441
00:25:07,967 --> 00:25:10,897
It's nonbinding, but we have
seen in certainly other

442
00:25:10,900 --> 00:25:14,400
countries that have had
arrangements like this that the

443
00:25:14,400 --> 00:25:21,670
power of public opinion is
persuasive in ensuring that

444
00:25:21,667 --> 00:25:29,497
compensation doesn't become so
aligned with short-term gain,

445
00:25:29,500 --> 00:25:34,500
rather than long-term incentive,
which is why most people own

446
00:25:34,500 --> 00:25:36,830
stock in a company.

447
00:25:36,834 --> 00:25:41,804
I think the President believes
that there are steps that we can

448
00:25:41,800 --> 00:25:51,500
take to ensure that there are
mechanisms in place, again,

449
00:25:51,500 --> 00:25:56,130
that bolster this notion of
long-term incentive rather than

450
00:25:56,133 --> 00:26:01,363
short-term gain, so that that
doesn't contribute to something

451
00:26:01,367 --> 00:26:03,537
like we've seen in
this economic crisis.

452
00:26:03,533 --> 00:26:07,933
The Press:
Forgoing the TARP, just on
the publicly traded companies,

453
00:26:07,934 --> 00:26:11,834
you didn't mention the push that
Secretary Geithner mentioned

454
00:26:11,834 --> 00:26:15,504
today to have the compensation
boards be more independent.

455
00:26:15,500 --> 00:26:22,600
Mr. Gibbs:
That's another legislative
thing that allows --

456
00:26:22,600 --> 00:26:25,730
like in Sarbanes-Oxley, with the
independence of the accounting

457
00:26:25,734 --> 00:26:30,234
committees, this provides
the independence for the

458
00:26:30,233 --> 00:26:34,103
compensation committee not to
be connected with management --

459
00:26:34,100 --> 00:26:42,470
again, in order to set
compensation that is outside of

460
00:26:42,467 --> 00:26:47,767
what we believe rewards
that long-term incentive.

461
00:26:47,767 --> 00:26:49,967
I think the President
believes, rightly,

462
00:26:49,967 --> 00:26:52,037
that these two
legislative efforts,

463
00:26:52,033 --> 00:26:56,763
in addition to the regulations
surrounding the congressional --

464
00:26:56,767 --> 00:27:00,597
around the Dodd amendment, as
well as what Mr. Feinberg is

465
00:27:00,600 --> 00:27:06,530
going to do, are common-sense
reforms that will give people

466
00:27:06,533 --> 00:27:09,233
confidence in publicly
traded companies.

467
00:27:09,233 --> 00:27:10,633
The Press:
To follow up on that, what's Feinberg's jurisdiction

468
00:27:10,633 --> 00:27:12,263
going to be?

469
00:27:12,266 --> 00:27:13,136
Mr. Gibbs:
I'm sorry?

470
00:27:13,133 --> 00:27:14,163
The Press:
Feinberg's jurisdiction.

471
00:27:14,166 --> 00:27:15,936
Mr. Gibbs:
Again, this is --
these are for, again,

472
00:27:15,934 --> 00:27:19,864
for companies that are receiving what's termed exceptional assistance.

473
00:27:19,867 --> 00:27:20,767
The Press:
That's it?

474
00:27:20,767 --> 00:27:24,337
Mr. Gibbs:
At this point -- right -- at this point, those are seven --

475
00:27:24,333 --> 00:27:32,103
it's AIG, Citi, Bank of
America, GM, GMAC, Chrysler,

476
00:27:32,100 --> 00:27:33,930
and Chrysler Financial.

477
00:27:33,934 --> 00:27:36,834
But -- those are the ones
that are, at this point,

478
00:27:36,834 --> 00:27:40,464
determined to have outstanding
exceptional assistance through

479
00:27:40,467 --> 00:27:43,297
the Troubled Asset
Relief Program.

480
00:27:43,300 --> 00:27:46,070
Obviously going forward, were
somebody to fall into that

481
00:27:46,066 --> 00:27:52,296
category, they, too, would
come into that jurisdiction.

482
00:27:52,300 --> 00:27:54,000
The Press:
But that's just
jurisdiction and that's --

483
00:27:54,000 --> 00:27:55,900
Mr. Gibbs:
Yes.

484
00:27:55,900 --> 00:27:56,630
Yes, sir.

485
00:27:56,633 --> 00:27:59,033
The Press:
Robert, some financial institutions seem to be rushing

486
00:27:59,033 --> 00:28:01,603
to want to pay back some of
the bailout money, which,

487
00:28:01,600 --> 00:28:03,730
on the one hand, that's good
because it shows they're in a

488
00:28:03,734 --> 00:28:05,764
good financial position;
but on the other hand,

489
00:28:05,767 --> 00:28:08,867
it seems that they want to get
out from under the thumb of the

490
00:28:08,867 --> 00:28:12,537
government, the oversight,
some of the restrictions.

491
00:28:12,533 --> 00:28:14,533
Is the administration
troubled at all by that,

492
00:28:14,533 --> 00:28:18,733
that the oversight that has
been put in place to protect

493
00:28:18,734 --> 00:28:22,204
consumers, they want to
get out from under that?

494
00:28:22,200 --> 00:28:26,500
Mr. Gibbs:
Well, again, as the President has said numerous times,

495
00:28:26,500 --> 00:28:28,070
he doesn't want to
run car companies,

496
00:28:28,066 --> 00:28:30,266
he doesn't want to run banks, he
doesn't want to run insurance

497
00:28:30,266 --> 00:28:34,596
companies with hedge
funds on top of them.

498
00:28:34,600 --> 00:28:41,300
There is, obviously, a robust
free enterprise system that is

499
00:28:41,300 --> 00:28:46,370
going to determine with
reasonable regulation the rules

500
00:28:46,367 --> 00:28:47,797
of the road.

501
00:28:47,800 --> 00:28:52,200
So if banks, based on the
recommendations and approval of

502
00:28:52,200 --> 00:28:59,070
their regulators, are deemed
able to have the capital cushion

503
00:28:59,066 --> 00:29:05,596
that's required that allows them
to pay back that TARP money,

504
00:29:05,600 --> 00:29:09,000
we obviously believe -- again, assuming the regulators

505
00:29:09,000 --> 00:29:12,870
obviously approve that -- that that's a healthy thing for our system.

506
00:29:12,867 --> 00:29:17,167
It gives confidence that the
program was run in a way that

507
00:29:17,166 --> 00:29:21,536
provided temporary assistance
through extraordinarily bad times.

508
00:29:21,533 --> 00:29:23,733
The government, as per the
announcement yesterday,

509
00:29:23,734 --> 00:29:30,334
recouped not just $66 billion
in money that was lent,

510
00:29:30,333 --> 00:29:33,063
but $2 billion that
was paid in interest.

511
00:29:33,066 --> 00:29:38,866
We're happy to get out of the
business of being any sort of creditor.

512
00:29:38,867 --> 00:29:42,067
The Press:
But what's the thinking, though, when you hear that they want to

513
00:29:42,066 --> 00:29:44,966
get from under the restrictions
or that oversight,

514
00:29:44,967 --> 00:29:47,797
when it comes to how much they can pay their executives, for example?

515
00:29:47,800 --> 00:29:50,700
Mr. Gibbs:
Well, again, I think what
the President believes is --

516
00:29:50,700 --> 00:29:53,370
and I think it's why it's
extremely important the

517
00:29:53,367 --> 00:29:56,067
President's effort
through legislation,

518
00:29:56,066 --> 00:30:01,496
to gain a say on pay, which
allows again a non-binding vote

519
00:30:01,500 --> 00:30:06,030
of shareholders to judge the
compensation levels for the

520
00:30:06,033 --> 00:30:08,633
management structure for the
company in which they've

521
00:30:08,633 --> 00:30:11,303
invested their
hard-earned money.

522
00:30:11,300 --> 00:30:14,130
As we've seen in
other countries,

523
00:30:14,133 --> 00:30:16,033
despite the fact that
it's non-binding,

524
00:30:16,033 --> 00:30:19,563
obviously there's a tremendous
power of public opinion and

525
00:30:19,567 --> 00:30:22,237
we've seen that that can bring
about tremendous reforms.

526
00:30:22,233 --> 00:30:24,503
Obviously, the President
continues to believe,

527
00:30:24,500 --> 00:30:27,130
as I've said earlier
to Jake's question,

528
00:30:27,133 --> 00:30:35,663
that nobody finds fault with
people that are doing well and

529
00:30:35,667 --> 00:30:41,097
are being paid well, as long as
that compensation appears to be

530
00:30:41,100 --> 00:30:45,230
aligned with the long-term
incentive for growth in a

531
00:30:45,233 --> 00:30:49,303
company rather than for
the short-term gain of an

532
00:30:49,300 --> 00:30:52,730
individual, which happens
to generally be --

533
00:30:52,734 --> 00:30:57,664
or can be at the
expense of stockholders.

534
00:30:57,667 --> 00:31:02,737
These are I think practical,
common-sense safeguards that the

535
00:31:02,734 --> 00:31:05,064
President advocates, and
in these regulations,

536
00:31:05,066 --> 00:31:09,366
has put in place that I think
give people a lot of confidence.

537
00:31:09,367 --> 00:31:10,597
Yes, sir.

538
00:31:10,600 --> 00:31:11,570
The Press:
Thanks, Robert.

539
00:31:11,567 --> 00:31:12,997
Could you tell a little bit
-- give us a little more

540
00:31:13,000 --> 00:31:16,200
information on how Ken
Feinberg will actually do this,

541
00:31:16,200 --> 00:31:17,830
what kind of power he has?

542
00:31:17,834 --> 00:31:20,464
Does he just set salary
and bonus figures and say,

543
00:31:20,467 --> 00:31:21,437
here it is?

544
00:31:21,433 --> 00:31:24,503
Or do they propose a package
that he then denies or approves?

545
00:31:24,500 --> 00:31:30,270
Mr. Gibbs:
He is a -- he has the jurisdiction to review,

546
00:31:30,266 --> 00:31:32,866
for those companies receiving
that exceptional assistance --

547
00:31:32,867 --> 00:31:37,067
the seven companies I outlined
and anything if it were to be

548
00:31:37,066 --> 00:31:40,536
added in the future -- he has the ability to review the

549
00:31:40,533 --> 00:31:45,803
compensation structures and determine whether or not we

550
00:31:45,800 --> 00:31:51,800
believe they met the criteria of being sound and appropriate,

551
00:31:51,800 --> 00:31:53,200
rather than excessive.

552
00:31:53,200 --> 00:31:55,930
The Press:
But can he -- if he
disapproves of one,

553
00:31:55,934 --> 00:31:57,764
can he then set his own figures?

554
00:31:57,767 --> 00:32:00,597
Or do they just
keep coming back --

555
00:32:00,600 --> 00:32:02,430
Mr. Gibbs:
He can set his own figures.

556
00:32:02,433 --> 00:32:07,933
People can -- he will
be able to ensure,

557
00:32:07,934 --> 00:32:10,204
for those companies receiving exceptional assistance,

558
00:32:10,200 --> 00:32:13,300
for those top 100
paid employees,

559
00:32:13,300 --> 00:32:16,200
a compensation structure that
he believes and the government

560
00:32:16,200 --> 00:32:18,900
believes is sound
and appropriate.

561
00:32:18,900 --> 00:32:22,300
The Press:
And for how long will these companies be under this?

562
00:32:22,300 --> 00:32:29,570
Mr. Gibbs:
For as long as they have
that exceptional assistance.

563
00:32:29,567 --> 00:32:35,737
So, as Dan said, if "Chip Reid
Bank" is receiving exceptional

564
00:32:35,734 --> 00:32:40,864
assistance, you work with
your appropriate regulator,

565
00:32:40,867 --> 00:32:44,867
whether it's the Federal
Reserve, the FDIC,

566
00:32:44,867 --> 00:32:47,467
come to a conclusion that the
money that you've been given you

567
00:32:47,467 --> 00:32:51,137
can pay back -- if that money is paid back then obviously you're

568
00:32:51,133 --> 00:32:55,633
not a recipient anymore of exceptional assistance.

569
00:32:55,633 --> 00:33:00,563
The Dodd amendment for the top
five corporate officers and the

570
00:33:00,567 --> 00:33:11,267
next highest 20 paid employees
extends for all businesses,

571
00:33:11,266 --> 00:33:15,236
all companies that are
receiving any TARP assistance.

572
00:33:15,233 --> 00:33:18,803
And what that law,
as you know, does --

573
00:33:18,800 --> 00:33:24,830
doesn't cap pay, but allows only
someone to receive as a bonus

574
00:33:24,834 --> 00:33:27,164
one-third of what they're paid.

575
00:33:27,166 --> 00:33:29,466
The Press:
So isn't this a pretty extraordinary departure from the

576
00:33:29,467 --> 00:33:33,637
way American capitalism has -- I know these are extraordinary

577
00:33:33,633 --> 00:33:37,263
circumstances, but, still, to have a government employee

578
00:33:37,266 --> 00:33:41,436
setting the salaries for hundreds of private-sector
employees --

579
00:33:41,433 --> 00:33:46,363
Mr. Gibbs:
Well, again, Chip, these are private-sector employees that,

580
00:33:46,367 --> 00:33:52,537
in many ways, have their job
based on the extraordinary

581
00:33:52,533 --> 00:33:58,633
assistance that has been
provided by taxpayers to ensure

582
00:33:58,633 --> 00:34:01,533
that they can continue
to have their job.

583
00:34:01,533 --> 00:34:04,203
The Press:
-- all companies have taxpayer assistance in one way

584
00:34:04,200 --> 00:34:06,300
or another.

585
00:34:06,300 --> 00:34:07,430
Mr. Gibbs:
How so?

586
00:34:07,433 --> 00:34:11,103
The Press:
Well, I mean, there are all different forms of so-called

587
00:34:11,100 --> 00:34:14,700
corporate welfare all
through the tax code.

588
00:34:14,700 --> 00:34:18,400
Mr. Gibbs:
Well, I think that -- I'm not entirely sure what you're

589
00:34:18,400 --> 00:34:19,830
getting at, but --

590
00:34:19,834 --> 00:34:22,334
The Press:
I'm getting at if any company that gets any kind of government

591
00:34:22,333 --> 00:34:25,803
assistance can have their salary
set by the federal government,

592
00:34:25,800 --> 00:34:27,270
where does that stop?

593
00:34:27,266 --> 00:34:28,936
Mr. Gibbs:
Chip, that would be an appropriate question if what I

594
00:34:28,934 --> 00:34:31,134
had outlined met that criteria.

595
00:34:31,133 --> 00:34:34,503
Again, I denoted there are seven
companies that have received

596
00:34:34,500 --> 00:34:40,470
extraordinary taxpayer
assistance, anywhere from --

597
00:34:40,467 --> 00:34:42,337
I don't know the rankings
of how much they've made,

598
00:34:42,333 --> 00:34:47,163
but obviously these seven
companies have received

599
00:34:47,166 --> 00:34:49,466
extraordinary assistance.

600
00:34:49,467 --> 00:34:53,237
Congress passed the Dodd
amendment that relates to any

601
00:34:53,233 --> 00:35:00,163
company that receives funding or
money directly through the TARP program.

602
00:35:00,166 --> 00:35:04,666
But again, this is not an
effort to set the salaries,

603
00:35:04,667 --> 00:35:08,967
as you said, to the penny of
every publicly owned or traded

604
00:35:08,967 --> 00:35:10,097
company in this country.

605
00:35:10,100 --> 00:35:14,600
This is a proposal that
protects the taxpayer.

606
00:35:14,600 --> 00:35:16,300
The Press:
But there are many in the business community who think

607
00:35:16,300 --> 00:35:20,300
once you've set this
precedent, where does it stop?

608
00:35:20,300 --> 00:35:25,770
Mr. Gibbs:
Well, Chip, you guys have asked me any number of times about the

609
00:35:25,767 --> 00:35:29,697
role that the government has
to play in the event that it's

610
00:35:29,700 --> 00:35:32,800
providing, as I've said, the
exceptional or extraordinary

611
00:35:32,800 --> 00:35:36,800
assistance that has been
provided by the taxpayers.

612
00:35:36,800 --> 00:35:43,770
The President believes and
Congress believed that that was

613
00:35:43,767 --> 00:35:48,337
something that was important to
do to protect the taxpayers,

614
00:35:48,333 --> 00:35:52,733
to ensure that compensation,
either through salary or

615
00:35:52,734 --> 00:35:57,764
bonuses, was done in a way that
was consistent with sound and

616
00:35:57,767 --> 00:36:01,437
appropriate practices and that
limited risk for taxpayers.

617
00:36:01,433 --> 00:36:02,703
I think that's what's
important here,

618
00:36:02,700 --> 00:36:05,370
is that these are investments
that have been made through the

619
00:36:05,367 --> 00:36:09,497
TARP program by taxpayers
through taxpayer money.

620
00:36:09,500 --> 00:36:13,130
This is an effort both
congressionally mandated and

621
00:36:13,133 --> 00:36:17,763
through the Treasury Department
to ensure that that investment

622
00:36:17,767 --> 00:36:26,197
is protected in order not to
rationalize an irrationally

623
00:36:26,200 --> 00:36:29,270
risky compensation package.

624
00:36:29,266 --> 00:36:30,196
Yes, sir.

625
00:36:30,200 --> 00:36:32,030
The Press:
Robert, just in the
array of questions,

626
00:36:32,033 --> 00:36:33,833
there have been questions about
government involvement in the

627
00:36:33,834 --> 00:36:36,834
auto industry, what Chip is
getting at about compensation,

628
00:36:36,834 --> 00:36:39,634
and now you've got the
President tackling health care.

629
00:36:39,633 --> 00:36:41,803
There is concerns among
some of the public --

630
00:36:41,800 --> 00:36:44,170
obviously Republican criticism.

631
00:36:44,166 --> 00:36:47,996
At what point -- how do you reassure the public that says,

632
00:36:48,000 --> 00:36:50,200
I don't know if the government's reaching in too much to too

633
00:36:50,200 --> 00:36:54,800
many things and, you know, maybe
health care's one step too much?

634
00:36:54,800 --> 00:36:57,600
How do you respond to that
criticism of government's

635
00:36:57,600 --> 00:36:59,730
involvement in so
many things right now,

636
00:36:59,734 --> 00:37:02,304
whether it's the auto
industry, financial industry,

637
00:37:02,300 --> 00:37:06,070
now in redoing health care?

638
00:37:06,066 --> 00:37:11,296
Mr. Gibbs:
Well, obviously -- I don't know if you've asked a question this

639
00:37:11,300 --> 00:37:16,030
week about the budget deficit, but Medicare and Medicaid,

640
00:37:16,033 --> 00:37:20,563
as Peter said, take up a big chunk of our federal budget.

641
00:37:20,567 --> 00:37:25,767
Those costs are simply going
to grow, if not dealt with,

642
00:37:25,767 --> 00:37:30,897
exponentially over
the next few decades.

643
00:37:30,900 --> 00:37:37,330
The President believes that
health care reform will help on

644
00:37:37,333 --> 00:37:39,863
a path toward fiscal
responsibility,

645
00:37:39,867 --> 00:37:45,067
and that millions of Americans,
families and small businesses

646
00:37:45,066 --> 00:37:48,866
are looking for relief from the
crushing costs of health care

647
00:37:48,867 --> 00:42:39,137
that, again, rise several times
the rate of inflation each year.
I think on any number
of occasions, Chuck,
the President wishes that any
number of problems might not be
on his plate, but that's not
necessarily the set of cards
that's been dealt to him.
The Press:
All right, let me ask
it in another way, then.
Are you worried that the
political problem, you know,
that Republicans are using
as angles, saying, well,
government is trying to
get too involved in that --
that could hurt the President's
chances, for instance,
of getting a government plan, a
public plan in his health care
because there is this sort of
rising discomfort among the
populous about government
involvement in everything?
You know, the government's
involvement in the auto
industry --
Mr. Gibbs:
I think if you listen to the debate on Capitol Hill about
health care you're likely to
hear two very important words:
choice and competition.
A public option that you're
referring to is nothing more
than the ability to provide more
choice through competition.
Those I think are values that
you'll hear throughout this
debate as being held near and
dear to the hearts of not just
people on Capitol Hill, but
throughout the country.
And the President and Congress
are working to design health
care reform that provides more
choice and more competition.
The Press:
Is there an issue that you guys are ready to say, you know what,
we can't wait for government,
we want less government involvement?
Mr. Gibbs:
We don't want to
own a TV company.
(laughter)
The Press:
Yet.
Mr. Gibbs:
We'll talk about your
-- yes, sir, I'm sorry.
The Press:
What's Ken Feinberg
being compensated?
Mr. Gibbs:
I'm sorry?
The Press:
What is the compensation
of Ken Feinberg?
Mr. Gibbs:
I don't know.
The Press:
I mean, is it a paid position?
Is it a full-time position?
Mr. Gibbs:
I assume it is, but I don't
have his compensation.
The Press:
You don't know if it's
a full-time position?
Mr. Gibbs:
I don't know what he's
being compensated.
The Press:
Right, is it a
full-time position?
Mr. Gibbs:
Yes.
I don't know what it's -- what I'm saying is I don't know how
much he's being paid.
The Press:
There have been reports he's
not receiving any compensation.
Do you know if that's true?
Mr. Gibbs:
I will check.
I don't -- I don't know if there's a special master for him.
(laughter)
The Press:
When are the rules going to
be released on the Dodd TARP
bonus legislation?
Mr. Gibbs:
That's today.
The Press:
Is that today?
Mr. Gibbs:
Yes.
The Press:
Is that going to happen -- that's going to be --
Mr. Gibbs:
Yes.
You should get a series of
factsheets at some point.
Ms. Psaki:
Two are out; there's
one more to come.
The Press:
And finally, when the President unveiled his own compensation
proposals, there was
a lot of fanfare,
it was before the Dodd
legislation passed.
How would you
characterize this --
the new rules in relation
to his original proposal?
Is he walking back from
his original proposal?
Was it trumped by legislation?
Mr. Gibbs:
Well, I would say, obviously Congress passing the Dodd
amendment does
require, obviously --
as you mentioned with wanting
to see the regulations --
is the law of the land for
compensation relating to anybody
receiving TARP funds.
The President outlined a set of
proposals that in many ways,
because of the law of the
land, were superseded.
We believe that what Mr.
Feinberg will do broadens
the scope of what can be looked
into because of just the simple
number of employees that are
affected in companies receiving
that exceptional or
extraordinary assistance.
Obviously if there -- if a proposal comes to his desk that
is equal to the number that
we talked about earlier,
that's something that
will obviously --
is a safe-harbor part
of this provision.
But we believe that Mr.
Feinberg's role gives him
the ability to better understand
and better look into the
soundness, the appropriateness,
and ensuring that balance of risk.
Yes, sir.
The Press:
Why stop short of giving shareholders binding say on
executive pay?
Mr. Gibbs:
Chip thought it was a bad idea.
(laughter)
The Press:
Ha ha.
(laughter)
Mr. Gibbs:
I'm trying to play CBS
off -- against each other.
The Press:
Won't work.
The Press:
-- shorthand for
"American people."
(laughter)
The Press:
That's what it stands for --
Mr. Gibbs:
Right, exactly.
No, I think that the
President believes that the
appropriateness of giving
shareholders the power of public
opinion is an appropriate role.
I think the President
believes that --
the President does not want to,
just as he doesn't want to own a