Barney Frank On Bailouts, Welfare

(CBS)  Barney Frank has been called the "smartest guy in Congress," which is lucky for us since he works on some of the thorniest issues around.

The 14-term, 68-year-old Harvard-educated Democratic congressman from Massachusetts is chairman of the House Financial Services Committee, which means his portfolio includes banks, housing and now the auto industry.

He has been at the center of both the $700-billion dollar rescue for financial institutions, and the bailout attempt for the car companies that failed in the Senate.

He worked on both this past week: pressuring Treasury Secretary Henry Paulson to deal with home foreclosures, and negotiating with the White House on the loan for GM and Chrysler. True to textbook liberalism, Barney Frank worked hard to keep the carmakers out of Chapter 11.

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"But I wonder why? Because when these companies finally get into bankruptcy they can do the tough things that they can't otherwise do," correspondent Lesley Stahl asks.

"There's only one thing you can do in bankruptcy: break your word, break your deals. It allows you to say to the small businesses, who have been catering lunches for you, 'Sorry, we're not paying you.' It allows you to go to the workers and say, 'Sorry, we're not paying you,'" Rep. Frank says.

Frank is a no-nonsense chairman who brought the heads of the big three auto companies before his committee, and let anyone who wanted to vent. But there was never any doubt that Frank himself didn't want the car companies to go under.

"What about the idea that in capitalism, if a company doesn't cut it, they die?" Stahl asks.

"That's what Herbert Hoover said. And Franklin Roosevelt said no," Frank says.

"It's what Darwin said," Stahl points out.

"Yes, it's true," Frank acknowledges. "And Darwin was a very good biologist. I don't think he was much of an economist."

"What we're now faced is with all the taxpayers having to prop up companies that made terrible decisions consistently," Stahl remarks.

"No, we're not propping up companies," Frank insists. "That's your mistake. We're propping up individuals. The world doesn't consist of companies. The world are people. The country is people. And yes, it is possible to argue that the government..."

"But then you're talking about welfare," Stahl says.

"Yeah, I'm for welfare," Frank replies. "You're not? Are you for letting people starve?"

At a meeting on Tuesday, Frank listened to mayors of towns hit hard by car factory layoffs.

"You know, there's a theory out there that you, the congressman, had this public spanking of these [car-company CEOs] in order to cover yourselves," Stahl asks but then Frank interrupts:

"That's the kind of argument that people who do not have any idea what they're talking about like to make."

"Are you telling me I don't know what I'm talking about?" Stahl asks.

"By making that argument, yes," the congressman says.

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[sadrake]

"Let me give you another unfairness. I wanna see what you think about this. What about someone who''s been working hard, 40 hours a week, maybe with some overtime, and goin'' to work every day. And then his neighbor loses his job. The neighbor starts getting unemployment insurance. The neighbor who lost his job is getting money for nothing, from the government. There''s some unfairness there," Frank argues.
Money for nothing?!?! What were all those payroll taxes I paid into the unemployment insurance system for over the last 35 years? By his reasoning, those drawing on social security must be deadbeats as well. And THIS is the smartest man in Congress? God help us all.

[karenteacup]

I was disappointed with this interview. Leslie had someone who played a major role in this country''s financial collapse, (in that he was sleeping on the job and he gained financially from his connections with Fannie Mae and Freddy Mac)....you could have held his feet to the fire, you could have held him accountable for his actions, yet you chose to talk about his sexual orientation?! What?! What a wasted opportunity.

[frj256]

Do you not realize that that Buffoon, Barney Frank, was one of those whose negligence brought about the bad loan crash? He not only did nothing to prevent the crash, but blocked regulation that would have prevented it. And he announced publically that one of the federally founded morgage firms was sound and got his "boy friend" a job at one of them. Why were these things not mentioned in the program? Do you not care about your reputation?

[seabuggg]

The next time you guys/gals interview a Democrat, I think it would be fitting to dress the interviewer in a short skirt and have Pom Poms. GET SERIOUS and ask some real questions and keep asking them until you get a answer! We are in trouble here. Brown nosing the guest who contributed to the problem does not help anyone!
PS luv the show Bruce in Georgia

[juicy327]

60 Minutes, in a previos life, was a fungible source of journalism. Leslie, your interview with Barney Franks was way beneath a novice. Why would any network waste primetime to pat a gay on the back that was so contributory to the fannie mae-freddie mac conspriracy. Just another arrow in the back of true patriots, thanks for helping kill AMERICA. In 1940 you would have been called a COMIE, gotta fill that time up with something, don''t you.

[earltim1]

Lesley, I viewed the Barney Franks interview (biography?). I noticed some displeasure on your part as to his demeaner, and the way he answered your questions. I would have much prefurred hearing the interview in more detail instead of the abbreviated Biographic presentation. I have worked in a field where there were gay men and Lesbian women. I have seldom met a gay adult who was without significant psychological issues, I would be surprised if Mr Frank was an exception. But even though you and your editors were apparently uncomfortable with Mr. Franks non-condiscending tone, I would like to hear from him ... NOT you. Perhaps the complete interview (without drama) could be aired sometime in the future. ( I was beginning to wonder who was behaving in the more inmature manner, Mr Frank .. or CBS ?)

[az1143t]

Barney Frank, as the Chairman of the House Banking Committee, is paid with our tax dollars to be our watch-dog in the areas of banking,housing and auto industry. While he is "wide awake" now, he has been "asleep at the switch" in not addressing and alerting us to the problems in these industries. In the private sector, he would be fired. In the public sector politicians never get removed, which is why government seldom gets better. You didn''t ask the tough questions. We just got his life story. You are our only watchdog to negligence and corruption. what we need is Jack Anderson style reporting with follow-up.

[dadabla]

" In the private sector, he would be fired."

But it was those in the "private sector," whether they were in the auto industry, banking, etc. that made, and continue to make, the big mis-management mistakes that Frank and many others bail out. They were not, and rarely are, fired. Rather, they resign with huge stock options etc. etc.

[dadabla]

" In the private sector, he would be fired."

But it was those in the "private sector," whether they were in the auto industry, banking, etc. that made, and continue to make, the big mis-management mistakes that Frank and many others bail out. They were not, and rarely are, fired. Rather, they resign with huge stock options etc. etc.

[guysdigdirt]

Who were the morons who put this self-important pig in office?

[sailon5]

what a joke! Leslie how about making this arrogant, bully answer your question about the people who took these irresponsible loans? You let him get away with comparing someone who looses his job through no fault of their own to an irresponsible borrower! This man encouraged these type of loans and no newsperson has the Ba*** to make him accountable. Thanks for NOT doing your job! You are a joke!

[dozer211]

this itrerview was a joke. hey lesley why is fannie and freddie not been investigated.how about his boyfriend whom he set up with a nice goverment job.how about harold raines walking away with over a 100 million dollars.