English subtitles for clip: File:6-10-09- White House Press Briefing.webm
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1 00:00:01,667 --> 00:00:05,897 Mr. Gibbs: Again, in my endeavoring pursuit to bring you special guests, 2 00:00:05,900 --> 00:00:09,000 today obviously we have the Secretary of Commerce, 3 00:00:09,000 --> 00:00:13,200 Gary Locke, who is going to talk to you guys and give you a 4 00:00:13,200 --> 00:00:16,830 little bit of an update on the impending deadline of the 5 00:00:16,834 --> 00:00:20,934 transition for digital television, 6 00:00:20,934 --> 00:00:22,604 which takes place at the end of this week. 7 00:00:22,600 --> 00:00:25,630 So, Mr. Secretary. 8 00:00:25,633 --> 00:00:26,503 Secretary Locke: Thank you, Robert. 9 00:00:26,500 --> 00:00:28,800 And today I'm here to remind Americans about the impending 10 00:00:28,800 --> 00:00:31,700 national switch to digital television. 11 00:00:31,700 --> 00:00:35,530 It's just two days away, Friday, June 12th. 12 00:00:35,533 --> 00:00:39,133 In February, President Obama signed the DTV Delay Act, 13 00:00:39,133 --> 00:00:42,703 which set June 12th as the final deadline for television 14 00:00:42,700 --> 00:00:47,570 broadcasters to transition from analog to digital signals. 15 00:00:47,567 --> 00:00:50,097 The President acted out of concerns for the millions of 16 00:00:50,100 --> 00:00:52,870 Americans who would have been left in the dark if the 17 00:00:52,867 --> 00:00:55,897 conversion had gone on as planned. 18 00:00:55,900 --> 00:00:58,600 The Commerce Department and the FCC have been spearheading 19 00:00:58,600 --> 00:01:02,770 efforts to ensure all Americans are ready for the switchover, 20 00:01:02,767 --> 00:01:06,137 and great progress has been made in just the last three months 21 00:01:06,133 --> 00:01:08,933 since Recovery Act funds were made available. 22 00:01:08,934 --> 00:01:10,734 But with the deadline fast approaching, 23 00:01:10,734 --> 00:01:13,134 some people are still unprepared, 24 00:01:13,133 --> 00:01:16,033 some 2.5% of American households, 25 00:01:16,033 --> 00:01:19,333 or 2.8 million households. 26 00:01:19,333 --> 00:01:22,033 Here is what the American people need to know about the June 12th 27 00:01:22,033 --> 00:01:25,803 switchover: If you currently have cable, satellite, 28 00:01:25,800 --> 00:01:28,570 or some other paid-for television service, 29 00:01:28,567 --> 00:01:30,437 you have nothing to worry about. 30 00:01:30,433 --> 00:01:33,003 You are prepared; you don't need to do anything, 31 00:01:33,000 --> 00:01:36,030 and June 12th you'll see no change in your television 32 00:01:36,033 --> 00:01:38,633 reception or programming. 33 00:01:38,633 --> 00:01:41,463 If you have a new television set purchased, let's say, 34 00:01:41,467 --> 00:01:44,967 within the last one year, those new television sets come 35 00:01:44,967 --> 00:01:47,767 automatically with a digital tuner. 36 00:01:47,767 --> 00:01:52,837 So if you have a television set a year old or newer, 37 00:01:52,834 --> 00:01:55,204 you're prepared; you don't need to do anything, 38 00:01:55,200 --> 00:01:56,800 you don't need to worry. 39 00:01:56,800 --> 00:01:59,970 But if you have a television set more than a year old and you're 40 00:01:59,967 --> 00:02:04,097 not on cable or satellite, and you're relying basically on free 41 00:02:04,100 --> 00:02:08,600 over-the-air service, you are not ready. 42 00:02:08,600 --> 00:02:11,470 And you will lose your television service this Friday 43 00:02:11,467 --> 00:02:13,267 if you don't act now. 44 00:02:13,266 --> 00:02:16,266 So you have three options: You can subscribe to cable or 45 00:02:16,266 --> 00:02:18,996 satellite; you can purchase a newer television set that has 46 00:02:19,000 --> 00:02:21,930 these automatic digital tuners built in; 47 00:02:21,934 --> 00:02:25,564 or you can purchase a converter box. 48 00:02:25,567 --> 00:02:27,597 The Recovery Act provided Commerce with money to help 49 00:02:27,600 --> 00:02:31,930 consumers having trouble affording a digital converter box. 50 00:02:31,934 --> 00:02:36,304 Millions of households have applied for and received the $40 51 00:02:36,300 --> 00:02:39,800 coupons to cover the cost of these converter boxes. 52 00:02:39,800 --> 00:02:44,330 And the converter boxes start at $40 and we mail out two coupons 53 00:02:44,333 --> 00:02:46,133 per household, requesting household. 54 00:02:46,133 --> 00:02:49,003 So that basically means that with the coupons you get a free 55 00:02:49,000 --> 00:02:50,830 converter box. 56 00:02:50,834 --> 00:02:53,164 While coupons are still available for eligible 57 00:02:53,166 --> 00:02:56,896 households, it will take some nine days for us to process and 58 00:02:56,900 --> 00:03:01,230 send out, first-class mail, these coupons, 59 00:03:01,233 --> 00:03:05,163 and so they will not arrive in time for this Friday's conversion. 60 00:03:05,166 --> 00:03:08,296 We will have these coupons available until the end of July 61 00:03:08,300 --> 00:03:11,230 -- July 31st -- or as long as supplies last. 62 00:03:11,233 --> 00:03:13,903 The coupons are good for 90 days each. 63 00:03:13,900 --> 00:03:16,670 If you already have a coupon, please make sure to purchase the 64 00:03:16,667 --> 00:03:20,267 converter box immediately at a partnering retail store like 65 00:03:20,266 --> 00:03:23,936 Target, RadioShack, Circuit City, or Wal-Mart. 66 00:03:23,934 --> 00:03:25,734 Take it home, hook it up right away -- 67 00:03:25,734 --> 00:03:30,864 in fact, you can use these converter boxes now and receive 68 00:03:30,867 --> 00:03:33,267 the digital signal now. 69 00:03:33,266 --> 00:03:36,536 You can get more information about the transition, 70 00:03:36,533 --> 00:03:39,903 or apply for coupons, or even find a nearby retailer selling 71 00:03:39,900 --> 00:03:48,030 these converter boxes by calling us toll-free at 1-888-DTV-2009. 72 00:03:48,033 --> 00:03:50,163 And for those Americans who need extra assistance, 73 00:03:50,166 --> 00:03:54,866 the FCC is offering free in-home installation for consumers in 74 00:03:54,867 --> 00:03:55,997 most cities. 75 00:03:56,000 --> 00:03:58,800 They can call the FCC, or if you have a technical question about 76 00:03:58,800 --> 00:04:01,470 how to install the converter boxes, 77 00:04:01,467 --> 00:04:07,897 call the FCC at 1-888-CALL-FCC. 78 00:04:07,900 --> 00:04:11,630 They have a robust call center that's in operation to help 79 00:04:11,633 --> 00:04:14,233 Americans with the transition and the call center will be 80 00:04:14,233 --> 00:04:18,803 fully staffed for many days even after June 12th. 81 00:04:18,800 --> 00:04:21,370 For those families already prepared for the transition, 82 00:04:21,367 --> 00:04:23,667 make sure to help other friends and families. 83 00:04:23,667 --> 00:04:26,497 If they have leftover coupons, unused coupons that are still 84 00:04:26,500 --> 00:04:30,200 valid, feel free to share them with other individuals so they 85 00:04:30,200 --> 00:04:33,100 can rush out and get a converter box. 86 00:04:33,100 --> 00:04:36,430 We will continue to reach out to the most vulnerable communities 87 00:04:36,433 --> 00:04:39,333 to ensure as many Americans as possible are ready for this 88 00:04:39,333 --> 00:04:41,063 switch to digital television. 89 00:04:41,066 --> 00:04:43,336 We want to make sure that families are able to not only 90 00:04:43,333 --> 00:04:44,903 receive their favorite programming, 91 00:04:44,900 --> 00:04:47,700 but more importantly, to receive news broadcasts of emergency 92 00:04:47,700 --> 00:04:52,500 alerts, impending storms, and any other emergency situation 93 00:04:52,500 --> 00:04:53,900 within their community. 94 00:04:53,900 --> 00:04:56,800 It's very important that communities and people 95 00:04:56,800 --> 00:05:01,800 throughout our nation have the information they need to respond 96 00:05:01,800 --> 00:05:03,430 in times of emergencies. 97 00:05:03,433 --> 00:05:05,063 And I want to thank you now, and I'd be happy to take any 98 00:05:05,066 --> 00:05:07,836 questions you have about the transition or the progress that 99 00:05:07,834 --> 00:05:13,504 we've made in decreasing the number of families who are unprepared. 100 00:05:13,500 --> 00:05:16,500 The Press: Can you tell us what kind of planning you have in place for 101 00:05:16,500 --> 00:05:20,070 the families who, come Friday or Saturday, despite your efforts, 102 00:05:20,066 --> 00:05:23,096 will not have gone through this and will lose their service? 103 00:05:23,100 --> 00:05:27,270 Secretary Locke: Well, the television stations, even though the screens will go 104 00:05:27,266 --> 00:05:30,936 blue, will have telephone numbers on the bottom -- 105 00:05:30,934 --> 00:05:34,434 either our telephone number, our toll free number, 106 00:05:34,433 --> 00:05:41,063 1-888-DTV-2009, where they can continue to request the coupons; 107 00:05:41,066 --> 00:05:43,866 and also telephone numbers for the FCC. 108 00:05:43,867 --> 00:05:45,767 The Press: This will come up -- the TV turns on, 109 00:05:45,767 --> 00:05:47,637 this will come on their screen? 110 00:05:47,633 --> 00:05:52,463 Secretary Locke: It's a rolling conversion starting midnight Thursday 111 00:05:52,467 --> 00:05:55,567 night, 12:01 a.m. Friday. 112 00:05:55,567 --> 00:06:00,637 Some stations will start converting to digital throughout the day. 113 00:06:00,633 --> 00:06:04,063 But by the end of the day all television stations must be 114 00:06:04,066 --> 00:06:06,896 exclusively on digital. 115 00:06:06,900 --> 00:06:10,330 The Press: And do you have a sense of how many people will be affected, 116 00:06:10,333 --> 00:06:12,803 who will not have converted by now? 117 00:06:12,800 --> 00:06:20,030 Secretary Locke: Well, as of this last Sunday we had some 2.7 million households 118 00:06:20,033 --> 00:06:22,003 -- excuse me, 2.8 million households, 119 00:06:22,000 --> 00:06:25,970 roughly 2.5% of all households in America with television sets 120 00:06:25,967 --> 00:06:28,097 that are not prepared. 121 00:06:28,100 --> 00:06:31,900 And when we say "not prepared," we mean who don't have at least 122 00:06:31,900 --> 00:06:35,070 one television set that can continue to receive news. 123 00:06:35,066 --> 00:06:38,036 I mean, in our own household we have several television sets 124 00:06:38,033 --> 00:06:40,333 that are on cable, that are hooked up to cable, 125 00:06:40,333 --> 00:06:43,463 but I also have an old television set in the garage 126 00:06:43,467 --> 00:06:46,997 that's not hooked up and will not be able to receive the 127 00:06:47,000 --> 00:06:49,600 broadcast after June 12. 128 00:06:49,600 --> 00:06:53,670 But we are prepared because our other television sets have cable 129 00:06:53,667 --> 00:06:55,497 and therefore not affected. 130 00:06:55,500 --> 00:06:58,530 So we're talking about families that are completely unprepared, 131 00:06:58,533 --> 00:07:00,603 that have neither the converter box, 132 00:07:00,600 --> 00:07:05,030 don't have a new television set, or don't have cable or satellite. 133 00:07:05,033 --> 00:07:06,863 We call them "totally unprepared." 134 00:07:06,867 --> 00:07:09,897 And on June 12th, if they don't do something between now and 135 00:07:09,900 --> 00:07:13,200 then, they will get nothing but a blue screen. 136 00:07:13,200 --> 00:07:17,370 The Press: Are there particular pockets of the country where families are 137 00:07:17,367 --> 00:07:21,567 unprepared, or are they scattered throughout the country? 138 00:07:21,567 --> 00:07:24,167 Secretary Locke: It's actually -- we're finding that it's primarily on the West 139 00:07:24,166 --> 00:07:29,396 Coast and the Southwest that are more unprepared than the rest of 140 00:07:29,400 --> 00:07:30,570 the country. 141 00:07:30,567 --> 00:07:34,137 Los Angeles, while having a small percentage of families 142 00:07:34,133 --> 00:07:37,463 unprepared, a small percentage of a huge market is about a 143 00:07:37,467 --> 00:07:40,267 quarter-million households that are unprepared. 144 00:07:40,266 --> 00:07:43,966 We're also finding that it's -- ethnic groups are more 145 00:07:43,967 --> 00:07:47,967 unprepared than the general population: African American, 146 00:07:47,967 --> 00:07:50,937 Hispanic, almost twice the national average; 147 00:07:50,934 --> 00:07:54,364 Asian Americans just slightly above the national average. 148 00:07:54,367 --> 00:07:57,867 Surprisingly enough, seniors are prepared. 149 00:07:57,867 --> 00:08:02,937 And it's the younger generation, households of under 30 that are 150 00:08:02,934 --> 00:08:05,804 also more unprepared than the national average. 151 00:08:05,800 --> 00:08:11,030 Maybe it's because they rely on new forms of media for news and 152 00:08:11,033 --> 00:08:14,103 programming and don't care about television anymore. 153 00:08:14,100 --> 00:08:20,630 (laughter) 154 00:08:20,633 --> 00:08:22,033 Mr. Gibbs: None of the newspaper guys are -- 155 00:08:22,033 --> 00:08:23,833 (laughter) 156 00:08:23,834 --> 00:08:28,164 Secretary Locke: So you new media people, you must be loving it. 157 00:08:28,166 --> 00:08:31,766 The Press: Don't watch the news tonight. 158 00:08:31,767 --> 00:08:34,667 Secretary Locke: The Recovery Act provided $650 million. 159 00:08:34,667 --> 00:08:39,297 And we have more than enough coupons to handle all the 160 00:08:39,300 --> 00:08:42,300 unprepared households if they were to ask for coupons. 161 00:08:42,300 --> 00:08:44,700 We also have several million coupons that have not yet been 162 00:08:44,700 --> 00:08:50,170 redeemed, but we've also provided funds to the FCC for 163 00:08:50,166 --> 00:08:52,436 outreach call center support. 164 00:08:52,433 --> 00:08:56,863 But we've really been pleased with the amazing interest and 165 00:08:56,867 --> 00:08:58,867 activity in just the last week. 166 00:08:58,867 --> 00:09:04,237 The last few days we've been receiving requests from over 167 00:09:04,233 --> 00:09:08,063 100,000 households asking for coupons. 168 00:09:08,066 --> 00:09:13,336 So we're seeing a dramatic drop in the number of unprepared families. 169 00:09:13,333 --> 00:09:16,963 When the President took office, there were some -- 170 00:09:16,967 --> 00:09:19,467 almost 6 million households, 6.8 -- 171 00:09:19,467 --> 00:09:22,197 excuse me, almost 7 million households not prepared -- 172 00:09:22,200 --> 00:09:24,030 6.8 million, to be exact. 173 00:09:24,033 --> 00:09:29,163 That's roughly 5.9% of the households not prepared. 174 00:09:29,166 --> 00:09:35,166 And that's now down to 2.5%, or 2.8 million households. 175 00:09:35,166 --> 00:09:38,966 The Press: You had said that this -- there was an ethnicity -- 176 00:09:38,967 --> 00:09:39,937 Hispanics and African Americans. 177 00:09:39,934 --> 00:09:44,334 Is this a language -- so is this a language issue that -- 178 00:09:44,333 --> 00:09:46,103 has there been enough done on the language front? 179 00:09:46,100 --> 00:09:49,200 Secretary Locke: Well, it could be a language issue. 180 00:09:49,200 --> 00:09:51,070 Ethnic minorities, for whatever reason -- 181 00:09:51,066 --> 00:09:55,336 it may be due to language -- are not as prepared as others. 182 00:09:55,333 --> 00:09:58,233 But we've been reaching out using Hispanic -- 183 00:09:58,233 --> 00:10:02,333 Telemundo, Univision; held a press conference with Mayor 184 00:10:02,333 --> 00:10:06,633 Villaraigosa in Los Angeles, Mayor Kevin Johnson in Sacramento. 185 00:10:06,633 --> 00:10:09,103 And since those press conferences and those special 186 00:10:09,100 --> 00:10:11,500 events -- I've conducted more than 50 events -- 187 00:10:11,500 --> 00:10:15,930 interviews, on-air radio shows, television shows, 188 00:10:15,934 --> 00:10:19,604 working with the print media -- the activity and request for 189 00:10:19,600 --> 00:10:23,070 coupons have really spiked. 190 00:10:23,066 --> 00:10:27,636 But we're using a lot of free media as well as paid media. 191 00:10:27,633 --> 00:10:29,903 And I want to thank all the partners in the television 192 00:10:29,900 --> 00:10:32,930 industry and broadcasting industry for getting the word out. 193 00:10:32,934 --> 00:10:35,164 The Press: Mr. Secretary, isn't it possible that some just decided not to do 194 00:10:35,166 --> 00:10:36,596 it, and isn't that okay? 195 00:10:36,600 --> 00:10:37,400 Secretary Locke: That's true. 196 00:10:37,400 --> 00:10:39,470 As long as -- we believe that there's almost universal 197 00:10:39,467 --> 00:10:41,167 understanding of it. 198 00:10:41,166 --> 00:10:42,996 We know that there will be some people who don't want to make 199 00:10:43,000 --> 00:10:45,330 the conversion or maybe they'll wait until they get a new 200 00:10:45,333 --> 00:10:49,033 television set, or maybe will just -- 201 00:10:49,033 --> 00:10:50,303 don't want it for now. 202 00:10:50,300 --> 00:10:52,500 And we do know that there are a lot of people who procrastinate, 203 00:10:52,500 --> 00:10:56,070 whether it's paying taxes or, when we were in college, 204 00:10:56,066 --> 00:10:58,996 studying for exams -- or not -- 205 00:10:59,000 --> 00:10:59,970 (laughter) 206 00:10:59,967 --> 00:11:01,367 -- and getting by. 207 00:11:01,367 --> 00:11:05,037 But, again, just in the last few days more than 100,000 208 00:11:05,033 --> 00:11:07,533 households have been calling asking for coupons. 209 00:11:07,533 --> 00:11:09,033 The Press: Mr. Secretary, can you explain how you're getting 210 00:11:09,033 --> 00:11:10,233 these statistics? 211 00:11:10,233 --> 00:11:16,503 Like how do we know that 2.5% of TV households don't have it? 212 00:11:16,500 --> 00:11:20,800 Secretary Locke: It's from Nielsen data and they collect the data almost every 213 00:11:20,800 --> 00:11:22,370 week or every other week. 214 00:11:22,367 --> 00:11:26,737 And the data that I've given you is the data as of Sunday, 215 00:11:26,734 --> 00:11:28,934 this past Sunday. 216 00:11:28,934 --> 00:11:32,904 The Press: What about people who are prepared, 217 00:11:32,900 --> 00:11:35,630 hook up the converter box, but still don't get a picture? 218 00:11:35,633 --> 00:11:39,263 How many of those might there be? 219 00:11:39,266 --> 00:11:43,136 Secretary Locke: It could be a problem of reception because for digital 220 00:11:43,133 --> 00:11:44,303 it's all or nothing. 221 00:11:44,300 --> 00:11:47,230 Using the old analog signals, if you had a building that was 222 00:11:47,233 --> 00:11:52,003 blocking the airwaves you might get ghosting, 223 00:11:52,000 --> 00:11:54,170 and if you were pretty far from the transmission tower the 224 00:11:54,166 --> 00:11:56,296 signal might be weak and you might not have a very good 225 00:11:56,300 --> 00:11:58,300 picture, it might be very grainy. 226 00:11:58,300 --> 00:12:00,570 With digital it's all or nothing. 227 00:12:00,567 --> 00:12:03,367 And so there may be some problems and households may need 228 00:12:03,367 --> 00:12:06,997 to buy a little antenna that they could attach to the 229 00:12:07,000 --> 00:12:08,700 converter box as well. 230 00:12:08,700 --> 00:12:10,900 But if people are having some questions they should call the 231 00:12:10,900 --> 00:12:17,200 FCC, and it's toll free at 1-888-CALL-FCC. 232 00:12:17,200 --> 00:12:21,100 And if people are having some problems with installation 233 00:12:21,100 --> 00:12:25,100 understanding, the FCC has free in-home consultation and 234 00:12:25,100 --> 00:12:27,330 installation service. 235 00:12:27,333 --> 00:12:31,603 The Press: May I ask on a different subject, the WTO? 236 00:12:31,600 --> 00:12:33,130 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 238 00:12:36,934 --> 00:12:42,034 join the WTO as a union other than individual nations. 239 00:12:42,033 --> 00:12:43,233 Have you heard about that? 240 00:12:43,233 --> 00:12:44,963 Do you have anything to say about that? 241 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. 243 00:12:47,834 --> 00:12:48,864 All right, thank you. 244 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 248 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 -- 276 00:14:40,800 --> 00:14:45,530 what we build provides the best care in the world at the lowest cost. 277 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