Transcript: Gibson Interviews Rahm Emanuel

EMANUEL: Well, I think that, look, the president, early on, met with Republican leaders. This week, had in bipartisan leadership, House and Senate, Democrats and Republicans, and is going to continue to reach out to members of the Republican Party to bring forth their ideas.

Look, just take energy, health care or education. Those challenges are big enough to find solutions in both parties to those challenges. That's his attitude. Now, I don't want to sit here and go through the bills, whether they be the Historic National Service bill or children's health care.

GIBSON: But certainly, you've got to say you're not getting cooperation from the other side of the aisle.

EMANUEL: You know what? I mean, the cheap thing, Charlie, would be to say we're not getting cooperation. The fact is, on certain things, as I was about to say, on children's health care, and on national service, we have. On the budget just passed, no. On the Recovery Act, it's been well documented, we had three Republican senators.

That doesn't stop the president's view or what he's asked me to do as the chief of staff from continuing to try. We're always going to try and reach out to members of the other party in both the House and Senate, mayors and governors, to find solutions. They'll always have an open door and a welcome sign or a welcome mat that, if they have ideas on how to solve problems, we're interested. It doesn't mean we're always going to agree, but we're always open to listening.

GIBSON: Some quicker questions, Rahm, because I'm limited on time.

EMANUEL: I got it.

GIBSON: The economy -- we're now getting a better sense of how the banks are faring after the government made massive infusions of capital into their coffers. Do you get the sense that some banks are going to need more money?

EMANUEL: Well, I think, first of all, as you know, that report, it's going to come out next week. Let me take one step back and remember what the stress test was for.

Over the last year, the entire credit market and banking market system was seized up by a sense of fear and a sense of -- a cloud that had hung over in the sense that nobody could trust anybody and, therefore, wasn't lending. And that fear pervaded the system, and so the economy ground to a halt.

The attempt of the stress test was to basically remove that confusion and that fear and replace it with a sense of clarity and confidence. Those that are healthy will know who they are, they're able to handle a more dire economic situation. And we know who they are because they have enough capital on hand.

Others, there will be a different sense. Some will need some more capital. Some will need, you know, different levels of capital. And that we have the resources, the private -- out in the public markets, there's other places to raise resources. That the capacity to deal with that is there.

And so I think that's the one thing I think I would take away, is that we will know after the stress tests who is in what position, and each bank will know based on the information. And then if there's resources needed from the government, we're there as a backstop, but there's other ways to also raise the kind of key capital that is needed.

GIBSON: Would we accept conversion of funds in those banks to equity positions? And wouldn't that constitute reform of nationalization?

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