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 Hit Me Baby One More Time - White House Press Briefing by Dana Perino 10/9/08 — Thursday, October 09, 2008 —  Q Thanks. Does the idea of the federal government taking part ownership in a number of U.S. banks fit with the President's philosophy of free enterprise?MS. PERINO: As the President has said, the radical and bold aggressive steps that we are taking on the economy are not ones that were part of his natural instincts. But when presented with the evidence that the financial crisis about to hit the United States would affect every single America up and down the economic food chain, this President decided that it was important that the government take robust action. That's why we worked with Congress to establish the rescue package. Part of that package includes a broad range of authorities for the Treasury Secretary. What you're referring to, I believe, is capital injections that would actually be investing in banks but not taking them over. Q Not taking them over, but doesn't this idea envision that the government would have part ownership in a number of banks? MS. PERINO: It would include an equity stake, yes. Q And how far along is that idea? MS. PERINO: I would refer you to the Treasury Department for that, but it is a part of the range of authorities that they were given, and this is a dynamic situation. We still have a volatile stock market, and Secretary Paulson is looking at all the different tools to figure out which one should be used at what time and how robustly, and how much money to put into each. He said it's going to take a little bit of time, though, as they implement these -- the rules and regulations that Neel Kashkari is now involved in. So let me refer you over there on specifics for that. Q But that's an idea that the President would be okay with? MS. PERINO: It was a part of the rescue package that the President supported, and it gives the Treasury Secretary a range of possibilities, and investing in banks directly was one of those authorities. And Secretary Paulson can use that authority as he sees fit. Q But given the fact that the markets have not reacted positively so far, or at least not very, wouldn't the President like to see that kind of authority used sooner than later? MS. PERINO: Well, one of the things that the President wants is to make sure that these new authorities are used in the most effective and efficient way possible. They are moving at lightning speed for government-type work in trying to establish how quickly people can get in those positions so that they can work on the reverse auctions that were also a part of the authority. This -- these capital injections are something that Secretary Paulson is actively considering, but I'd have to refer you to him as to when he thinks he'd be able to make the first move. Q And the President -- back over this ground again -- the President doesn't object to this in spite of his free market stance? MS. PERINO: As I -- the President's natural instincts when first presented with these issues was not to have government involvement, but when he realized that it wasn't just a few executives on Wall Street who were going to lose their shirts, but it was possibly everyone in America, and now if you look around the world, everybody is suffering -- the President said the government has the tools and the ability to be able to step in and stem this crisis, and there was no way he was going to stand by and let everyone be hurt by the bad decisions of a few. Dana Perino | Economy | President Bush | Press Briefing | Treasury Department | Wall Street | White House Press Corps Labels: Dana Perino, Economy, President Bush, Press Briefing, Treasury Department, Wall Street, White House Press Corps
Posted by White House Press Corps @ 5:29 PM
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