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[2:26] ..." so thug image badly needed now it probably have to wait until Senator Obama actually take office but you will get one then. As do automobiles that there were actually three different proposal coming forward now"...
[11:37] ..." this morning in Louisiana. The governor Bobby jungle here in our studio. Newt Gingrich. Governor -- all there's no question now Republicans and got a lot of work to do what what should be the first"...
[11:56] ..." first only to congratulate senator elect a president elect Obama I think Senator McCain was very gracious on election night. As Republicans we need to do three things to get back on track number one. We've"...
[13:09] ..." Gingrich. Did you think. That there was any way John McCain that won this election. Oh and -- sure that there were ways to win the election but I think once the Wall"...
[14:36] ..." governor general at the Republican governors conference there where you heard what. Newt Gingrich just said. It turns out this -- a pilot stole the show was not a good thing for reply happens. Well a"...
[18:00] ..." in 1980 Ronald Reagan got 14%. Of the black vote. This year John McCain got 4% now that's understandable you have the first African American candidate and I think both -- you would agree he was a very good candidate who ran a good campaign. But look at the rest of this. Ronald Reagan got 37%. Of the Hispanic vote George Bush got 44%. John McCain 31%. Ronald Reagan in 1984. Got 61%. Of the youth vote John McCain got 32%."...
[20:59] ..." you look at there's as senators are present about it. Look at senator Obama's campaign he's promising a middle class tax cut. That was a -- position. All right we're done when I want to thank"...
[0:01]" Today on face the nation should the ailing auto companies got a they allow me and -- is the future of the Republican Party. Close to collapse Detroit's Big Three year calling on congress to bail them out what would happen to the economy -- to. Go under and will a -- happen. If a bailout passes what other failing industries -- in the line each of the questions. Congressman Barney Frank Democrat of Massachusetts. Who's leaving and pay a lot of effort for the Democrats and senator Richard Shelby. Republican of Alabama he's against him and then we'll talk about the future of the Republican Party and with the former house speaker so -- it. Bobby gentlemen the governor of Louisiana. I'll have a final word on the power that's great parlor -- transition. Who's in who's -- Maybe they all the Big Three or not."
[1:06]" Face the nation. -- CBS news chief Washington correspondent Bob Schieffer. I know from CBS news in Washington Bob Schieffer."
[1:17]" And good morning again he's home in Massachusetts -- chairman of the banking committee Barney Frank whether it's from Tuscaloosa Alabama this morning senator Richard Shelby the ranking Republican. On the Senate banking committee I want to start we knew what chairman frank thanks to both of you for coming in this morning welcome congress is -- coming back into lame duck session this week. The purpose was to put together some kind of stimulus package for the economy. Now on the front burner should be big Korean Detroit got some sort of financial bailout help. But I have to be quite -- you chairman frank I know your for this -- auto industry bailout I see no indication that congress is ready to do."
[2:02]" Well housing related to what I will -- with regard to your first comment. I and I know the Democrats and how would much rather be -- also with a voice stimulus package I think there's a significant consensus that given that. Serious economic problems cut. Unemployment steadily raising higher. Consumption down that we should be doing a bush stimulus package unfortunately we've run into resistance. From the president others and so thug image badly needed now it probably have to wait until Senator Obama actually take office but you will get one then. As do automobiles that there were actually three different proposal coming forward now all of which would result in the industry getting them. Short term bridge help to see if they can dig themselves out of the hole. But. You're right they are different ones as I understand the administration's position is that 25 billion that congress already voted is that that did not seem contrary of the time the president signed -- Which was for the purpose of having them become more and you -- and the president can appears to be to let -- keep that 25 billion but take away any requirement that they moved energy efficiency I think that would be grave error. The Democrats in the Senate have been saying. Well he can be taken the existing. 700 billion dollar rescue. And how we think that would be -- because that's not what it was explained that when we voted on it I don't think that 700 billion could be used. But I think. Respect for democracy means you have a separate vote on it and put forward something that would be. A temporary did you all with very tough conditions withdrawn protected for the taxpayer. Until we get it when new administration."
[3:35]" But I AA is is that listen you hear you seemed to be agreeing with me that it hits probably not going to happen here. May not be had a bug you may be confident that all the predictions you make come true I'm not. That this no downside to trying and I. Yes it will do the best we can in the end there's no guarantee that we'll bet put an average in the country. A senator -- you don't want."
[4:00]" This -- you think the auto. People ought to be allowed to going to bankruptcy if that becomes necessary. Do you think there's any. Chance that this this will pass the Senate this help for the auto industry."
[4:12]" I hope not Bob I think this is the wrong road to go down right now we we know that there's no in game here. We got failing in almost general automobile manufacturer General Motors. Got a bad model got bad management no innovation known models and so forth. Now we're talking about putting 45 another 45. And who knows where it will stop billions and billions of dollars. Into a a system modeled it's not normal work. It's black -- or in the way these companies need it either. Refurbish themselves get new leaderships are all over. In this instance save a lot of jobs are they're going to inevitably gonna go under anyway -- with the help of a lot of taxpayers money. And lastly though Bob. The government the US government the people. Have not. Your attitude here to four chosen which company would survive in the marketplace. In which would fail well companies fail every day. And and others take their place I don't I think this is a -- we should not go down."
[5:20]" I don't think anybody would argue with you when you say that the these auto companies have made some big mistakes but when you talk about the auto industry affecting one job in -- in America. With how many things are dependent on the auto industry. In the country afford to let. If one of these companies going to bankruptcy."
[5:44]" I think well some people believe that chapter eleven bankruptcy would be a lot better management. And what they have today where they would reorganize. They would get rid of the management that has -- them where they are today. Bloated contracts everything that goes -- that no profit no product who fail. This beat -- is not the General Motors we grew up we did this a General Motors that's headed down this road to oblivion. Should we intervene to slow it down knowing it's."
[6:13]" Gonna happen say no no I don't think the American taxpayer. Mister chairman. Federal I know. My colleagues at some people say I'm always skeptical of arguments that begin some people say I'm not true that the next I didn't going to be elvis' don't buy it. Knowledge economy -- on table it was congressman frank well I just inevitable I don't know I think we're gonna talk about what we believe and the answer is that yes they ought to be sped up. The question is how much pain are you going to inflict on the economy one thing we have to understand the context here we want to terribly weakened economy we have this. Credit crisis we have. I tap the credit crisis the very serious deteriorating physical economy it might be one thing to tolerate a bankruptcy if we had a lot of jobs out there. If that was prosperity. When you talk about that negative shock that would result from bankruptcies of these companies. Right now and by the way I wouldn't be polite about chapter eleven there -- suppliers out there who borrowed money small businesses. They get hurt the bankruptcy. There whole range of people who didn't make a decision to DM yeah secondly what we're talking about is the 25 billion. Very much coming first in any repayment the taxpayers would be protected by the bill would be putting forward. Secondly that would be requirement that they come up with plans both to feel that they can be viable. And that they will in fact improve the environmental efficiency and that's where we differ with the president. Because he's apparently prepared to take the 25 billion -- give him and make that -- and no strings attached proposal by the would be one where they have to try to get more fiction to the question is. How much pain. If you inflict on loading very weakened economy. But politely saying well it and it kept eleven that's going to cause a great deal of difficulty of the time of the economy we can't stand."
[7:59]" Let me ask you this chairman frank. Rick Wagner who of course heads a GM says that out. He is not willing to step aside if that is one of the conditions. To getting that's federal bail out. Shouldn't there be some sort of condition put on this I mean. Shouldn't get taxpayers. Expected maybe management is going to change well we have a number -- conditions. First whether it."
[8:23]" There will be no dividend paid during media kind of -- is is extended if the bill that we put forward -- it. That's something you can't do if you just give it to the -- of the yet existing of funds. -- or -- simply reduce the the environmental restrictions that the president talked about. No dividends no bonuses for anybody make more than 200000 dollars CEO of a very tough oversight board that among other things could veto. Ventures that would take some money maybe put an overseas. As to exactly in an amendment ought to be the oversight board which would consist of the leading. Executive branch officials. Who have jurisdiction within its commerce and labor and environmental and they -- they would be the ones to work to make these decisions. But you wouldn't make that a precondition that had to be Accenture match no because I'm not sure who want gentlemen good to be or how. I think we give them these very strict requirements that day. But 125 million it's gonna get them are divided among three companies it gets them into -- administration before any -- can happen. Either they'll have to open it back and we're out of it. Or they will come up with -- is that can convince people that they can be both environmentally. And economically sound."
[9:35]" What about that senator Shelby do you think that ought to be a precondition it would that make you more amenable to. Some sort of bailout if the management agreed to step aside. Well I wouldn't support it anyway but I can tell you what management gotta go. If you if you."
[9:53]" Deals with the people who broke the failure to these companies. And people monopolies. And keep them in. Power with the federal money you're just going to have more of the same problem. I nothing's gonna happen except just a downward spiral the model doesn't war. The management is not innovate they need to go and they also don't have to be streamlined Atlanta get smaller. They don't have to be able to be competitive why are they going to the federal government bond. Because there's not a bank in this country that would lonely in a dollar and of these companies -- house they know they're failures and the model a question. And that government is going to go down that road in its a mistake."
[10:37]" Part of the problem of course is that there. A lot of people who perfectly sound. Who can't get loans from banks in this country now because we've got this terrible credit crisis and I I would hope the administration would do a better job -- they've done of going to the banks have been the beneficiaries of some funding. And and pressed them to the home. To all kinds of companies. That could be -- abdomen and right we all agreed that they need to make fundamental changes. The question is how much pain -- the rest of the economy take while those figures are being implemented."
[11:05]" All right well -- I want to thank both to view four being with us this morning and bring us some insight into this. We're going to come back and talk some more about this and in specific. Where's the rip of -- is next here. And we're going to talk now a little bit about -- where the Republican Party goes from here and two people or worth listening to or whether it's this morning in Louisiana. The governor Bobby jungle here in our studio. Newt Gingrich. Governor -- all there's no question now Republicans and got a lot of work to do what what should be the first thing native."
[11:53]" thank you for having this morning clearly. At first only to congratulate senator elect a president elect Obama I think Senator McCain was very gracious on election night. As Republicans we need to do three things to get back on track number one. We've got to stop defending the kind of spending and out of control spending that we. -- never tolerated the other side you know when voters tell us that they trust Democrats more to cut their taxes controls thing that tells you something's wrong with the Republican Party. We've got to match our actions of our writer number -- We've got to stop defending the kinds of corruption we rightfully criticized the other party. The week before the election -- most senior senators convicted on federal charges and that's only the latest example number three. We've got to be the party that offers. Real solutions for the problems that American war of voters American families are worried about would -- abandon our conservative principles we we can't just be the party you know we'd offer real solutions are making health care more affordable on the economic challenges facing families on the international threats. I think we have a debate in this country I'm opposed to a single Payer government run health care system. That's not enough we need to also show the American people that we're for tax credit were for using technology to emphasize preventative primary care electronic patient records. So it every American has access to affordable private coverage all right."
[13:09]" Gingrich. Did you think. That there was any way John McCain that won this election. Oh and -- sure that there were ways to win the election but I think once the Wall Street crisis occurred it wants that President Bush on television for eighteen straight days of became extraordinarily hard. By Election Day President Bush's job approval was between nineteen and 23%. So McCain ran somewhere between 23 and 27%. Ahead of President Bush's job approval that's -- when you can't ask a lot more out of a candidate than that. But I think I think guy you're interviewing one of the people -- part of our future it when you look at the governor's and you look at. Governor -- all he's doing Louisiana you look at governor Mitch Daniels who won by twenty points in Indiana while McCain was losing it. You know governor Jon Huntsman who has the lowest employment rate in the entire west and -- billion dollar surplus last year 300 million dollar surplus this year. And a lot of lessons to be learned out there and everywhere I turn -- governors who are doing very good job. Governor Mark Sanford of south kind of just took over the Republican governors association. So I've been through this and you have been around long enough I've been through the 64 collapse from the Republican Party is going to disappear. And the 74 Watergate collapse in the -- going to disappear and the 92 defeat of President Bush. Oh and and in each case I watched just within a short time. Focus on new ideas and new solutions. And within a very short time come back -- a stronger and healthier party."
[14:34]" So so what happened governor general at the Republican governors conference there where you heard what. Newt Gingrich just said. It turns out this -- a pilot stole the show was not a good thing for reply happens. Well a couple of things one I think it's great for Republicans have. Governors and other speaking out we need as many as many messenger it's not the messengers it's a substances the message that's important -- other pundits want to start looking at 2012. What's more important what the speaker said he's exactly right. Remember when he became spe