Fact Check on Fiorina's Bailout Revisionism

Bottom line up front: Carly Fiorina was a major voice in support of the Wall Street bailouts in autumn 2008. There is ample evidence documenting this.

Fiorina was John McCain's senior economic advisor when he suspended his campaign and returned to Washington, D.C. to help craft what became TARP and the Wall Street bailouts. Her role at the time was one that she described (see http://bit.ly/2d2q3A) as "a point person for the McCain campaign on economic and business issues." If she wishes to claim she opposed those bailouts, despite speaking repeatedly in favor of them, one of two conclusions flows from her assertion: she was a wholly irrelevant advisor, or her conscience did not compel her to depart the McCain campaign despite a difference of opinion that can only be described as monumental. Journalists should ask Carly Fiorina which of the two she prefers.

As in so many things, Fiorina tries to have it both ways on this topic. On the financial bailouts, she wrote in the WSJ (see http://bit.ly/3Dg4Kt) about what financial institutions would have to do "[t]o earn a bailout." Then there's her BusinessWeek interview (see http://bit.ly/3wmucd) in which her position on financial-institution bailouts is more pro than con.

Of note in the aforementioned WSJ piece is Fiorina's insistence that "when CEOs go to Washington and ask for taxpayer money, they should also be prepared to submit their resignations and those of their boards." She repeated that view in the KFI interview. Yet Carly Fiorina has held campaign fundraisers with Morgan-Stanley CEO John Mack (see http://bit.ly/ceJx7r), under whom Morgan-Stanley received about $10 billion in TARP funds (see http://bit.ly/9hQoZH). Journalists should ask Fiorina whether she believes one of her key fundraisers should have resigned in fall 2008, and whether her willingness to accepting his fundraising help conflicts with her stated caveats on the bailouts she otherwise fully supported.

Perhaps the best example of Carly Fiorina going full-bore for the bailout is preserved at the noted heavily biased anti-Fiorina site, CarlyFiorina.com, where we may read the transcript of her September 15th, 2008, interview with David Gregory (see http://bit.ly/1G8qR0). Here, she is in full McCain-proxy mode, enthusiastically supportive of bailouts and arguing for more, not less, government intervention in the markets:

"....I think you are confusing John McCain's positions by painting it as hands off, free market, laissez faire. I think that has been perhaps true of the Bush administration the last four years in terms of a wild, wild west with no regulation. But it is definitely not what John McCain believes. I think the better model for John McCain is Teddy Roosevelt, who believed that there was a robust role for government. And John McCain has consistently believed there is a role for government. A role for government is to make sure that institutions are accountable and transparent."

That same day, Fiorina appeared with Fox's Neil Cavuto (see http://bit.ly/igQJM), where she again issues a defense, as a McCain proxy and senior advisor, of the Wall Street bailouts:

"John McCain at the time said that he supported the bailout of Fannie and Freddie and Bear Stearns because he recognized that it was important for the government to step in and prevent systemic risk in the case of Bear Stearns and make sure that Americans still had access to capital for homes in the case of Fannie and Freddie. However, he also said that it was a primary importance that having used taxpayer money here that taxpayers are protected first and foremost, that taxpayers should not be used to give the CEOs of Fannie and Freddie a nice golden parachute, and that the top priority must be to protect those taxpayers going forward."

One month later, in mid-October 2008, Fiorina appeared twice on Fox News -- perhaps the appearances she referred to on KFI -- to again issue a clarion defense of the bailouts. Her statements, preserved in part at the admittedly left-wing site ThinkProgress (see http://bit.ly/5DHgBV), asserted that "the bank bailout was, unfortunately, necessary because credit is tight for hardworking Americans and small businesses."

When it counted -- when she was asked to weigh in on the national stage at the moment of decision -- Carly Fiorina wholeheartedly endorsed the Wall Street bailouts. Need it be said, Chuck DeVore did not (see http://bit.ly/7Vnq0K). Calling Carly Fiorina a "high-profile supporter of the Wall Street bailout" is no myth: it's historical fact that's directly supported by the very media pieces she touts on her personal website.

Chuck DeVore challenges Carly Fiorina to a debate on KFI 640

Today, Chuck DeVore called into the Jon and Ken show on KFI 640 and challenged Carly Fiorina to a debate which she refused to take:

see link for audio: http://www.chuckdevore.com/blog.asp?artid=235

FOR IMMEDIATE RELEASE -- DeVore for California today responded to Carly Fiorina's refusal to debate Chuck DeVore.

Fiorina's refusal came during a live broadbast on KFI 640AM's John and Ken Show this afternoon. After Fiorina was on the air for twenty minutes, the hosts allowed Chuck DeVore on an open line to challenge her to a future debate on the same program. Fiorina refused, instead choosing to reproach DeVore for his habit of telling the truth about her liberal political past. When the program hosts directly asked her whether she would debate on their show, Fiorina simply said, "Well, we'll see."

Following the exchange, Chuck DeVore said, "Democracy is all about debate. I'm ready to debate Carly Fiorina and Tom Campbell any time, in any forum. It's a shame Fiorina wouldn't say yes to the generous offer extended to her by John and Ken, but that's her choice. Open debate is something I hear happens pretty often in the United States Senate, and people who would be Senators should get used to it."

Leisa Brug Kline, DeVore for California campaign manager, said, "It's a pity Carly Fiorina won't debate Chuck DeVore, but not surprising. Her campaign depends on two things: on shielding her from unscripted challenges, and on preventing Californians from learning more about her liberal past. It will fail on both counts, and refusing to debate won't change that."

Joshua Treviño, DeVore for California communications director, said, "Carly Fiorina followed up her debate dodge with an outright lie to John and Ken, and to their listenership: she stated directly that she 'did not back the Wall Street bailout.' There's so much direct evidence to the contrary, we're including it in a separate section of this press release. If Carly Fiorina won't tell the truth about her political past, we will."

Treviño continued, "Still -- we have to admit that a refusal to engage in substantive debate, plus a willingness to lie in public, does mean Fiorina might fit in all too well in D.C. We'll see if the voters want that."

The DeVore for California campaign is online at ChuckDeVore.com.

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