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###### CNN TRANSCRIPT #######

CNN “Lou Dobbs Tonight” Transcript
Kitty Pilgrim, Guest Anchor
Aired Tuesday, November 18, 2008

PILGRAM: Tonight Treasury Secretary Hank Paulson faces blistering criticism from lawmakers on Capitol Hill. One of those lawmakers, Senator Jim Inhofe is my guest. Senator Jim Inhofe says Congress completely abdicated its responsibility by agreeing to a blank check for Wall Street.

PILGRIM: Angry lawmakers showed just how fed up they are with the Bush administration’s handling of the federal bailout. They are trying to take control of the program. Many Democrats and Republicans say the bailout has been shrouded in secrecy and no one is being held accountable. Lisa Sylvester has our report.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT: Some lawmakers are calling it like they see it saying Secretary Henry Paulson doesn’t have a clue how to staunch the financial crisis.

PILGRIM: As Lisa reported Congress is demanding oversight. Senator Jim Inhofe says congress signed a blank check to the Treasury Department, and now he is working to correct that. Senator Inhofe today introduced legislation that will require congressional approval for spending the remaining bailout funds. And he joins me now.
Senator Inhofe, you voted twice against this. Now you want action. Why are you so convinced that this is the way to go?

SEN. JIM INHOFE (R), OKLAHOMA: Well, first of all, Kitty, when it first came up, I opposed it. And I opposed it because if you read the bill that we passed, it didn’t say — even though the secretary of the Treasury was talking about using it to buy up damaged assets — that is not what it said. It said $700 billion, and as it turns out for anything that he wants. Now, I am very critical of him because of that. And now we don’t know for sure what — I only found out today, and here I am a senior member of the United States Senate, how much money is left of that $350 billion. It is about $60 billion. So I have introduced a bill, and it’s called Senate bill 3683, and it would freeze any further spending. And if you look at just what’s left now in the $350 billion that would come up, I’m very much disturbed because there is a process to enter into that, to access that $350 billion. That means that if we are not here in session, then it would be done unilaterally by the Treasury Department. When in the history of America has one unelected person had the control of a massive amount of money like this? Total control to do with whatever he wishes?

PILGRIM: You make a fair point, sir. And — but they say special circumstances call for special measures. Let me just bring up what Secretary Paulson said. He testified before the House Financial Services Committee today. And let’s listen to what he said.

(BEGIN VIDEO CLIP)

HENRY PAULSON, TREASURY SECRETARY: The Treasury, the Fed and the FDIC have stabilized our financial system. The authorities in the TARP have been used to strengthen our financial system and to prevent the harm to our economy and financial system from the failure of a systemically important institution.

(END VIDEO CLIP)

PILGRIM: He says this is working. Is it not dangerous to slam on the brakes suddenly?

INHOFE: Well, no, he has actually said that the markets have stabilized. And if they stabilized, why do we need to leave $350 — well, actually, more than $350 billion out there for someone to spend, without any oversight? Let’s keep in mind — this has never been done before. There has always been some type of oversight, congressional oversight or otherwise. Now there is none whatsoever. And so, one of two things can happen. When we peel out of here on Friday or whenever Harry Reid lets us go, we are going to be adjourned. That means that we are not going to be there to stop him if he wants to access another $350 billion. Now, the other possibility is, it will go off to the next administration. That is a scary thought, to think that the Obama administration is going have $350 billion sitting out there to do whatever they want to do with. I’m very much concerned about it. I think our only chance to stop this thing is my legislation. And I doubt seriously that Harry Reid will allow it to get on the floor.

PILGRIM: Why are you concerned about the next administration having some weapons to fight whatever they need to fight in the financial crisis?

INHOFE: Because I think, judging from the rhetoric that we got during the Obama campaign, it will just go off to meet some of the obligations — some of things that he said he was going to do, having nothing to do with the economy. It’s just a blank check that is sitting out there, $350 billion.

PILGRIM: Well, certainly a blank check was the cause of concern right from the beginning on this. You know, we should point out that there was a very dramatic reversal by Secretary Paulson last week, where he just said that toxic assets — buying up toxic assets wasn’t necessary, a complete reversal. Are you worried about the direction that this money is being spent in, or do you feel that there is no direction?

INHOFE: Well, I’m just saying this — in the two weeks prior to the October 1st vote, all we heard from Secretary Paulson was, it has to be assets, we’ve got to buy up the assets, it has to be done. That is what the money is going to be used for. Everyone believed it, and that is the reason that so many of the people voted for it. Then it wasn’t that at all. It is just whatever he wants to do. And again, this has never happened before. And I think it has to have some oversight. Right now, all they are talking about in Congress is, well, what will be — what are we going to do about having a new inspector being — watching what is going on? It is too late to talk about that, because my belief is, by — another month from now, the money will be gone.

PILGRIM: You know, I really have to get your thoughts on the big three automakers. They are appealing for $25 billion. What do you think of that?

INHOFE: Well, that’s what I said — back when I opposed this bill, I said, you wait. There are going to be other people in line. They are going to be watching. Yes, we are going to bail out the banks. So let’s get in line there, and the next is the auto industry. And I even said this, and said, what about the aviation industry and everyone else? Is that government’s responsibility to bail everyone out? And I think not. I think that would be a very bad thing to do. I think if we bailed out the auto industry, it wouldn’t change the management, it wouldn’t change the union contracts, the ones that really created the problem. So I think they are going to have to take some other route, at least with my vote.

PILGRIM: Thank you very much, Senator Jim Inhofe. Thank you, sir.

INHOFE: Thank you.

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