Transcript: Rahm Emanuel and Rep. John Boehner

And then, at the end of the day, the economy and the consumer got effected. The purpose of the stress test was to have a clear demarcation between that confusion and fear with...

STEPHANOPOULOS: And also figure out how much more money they're going to need from the federal government.

Are you confident you will not have to come back to Congress...

EMANUEL: Well, first of all, I haven't seen -- as you know, I haven't seen the stress test yet. What we do know is, in the first quarter, banks and the financial institutions, the major 19, are doing better. And I think we're all pleased that they're reporting profits.

But that doesn't take away that some are going to need resources. We believe we have those resources available in the government as the final backstop to make sure that the 19 are financially viable and effective.

STEPHANOPOULOS: Without coming back to Congress?

EMANUEL: Right. The resources that we have on hand, we believe -- and it's not just that, George, is that we have those resources; we have a facility to buy these troubled assets off their banks. If they need capital, we have that capacity. We have what we're doing on the home front. I'm basically helping homeowners basically access and buy a home and stay in a home and refinance their home.

And we also believe, as you see in April, consumer confidence is up.

STEPHANOPOULOS: So you don't believe you're going to have to come back? Do you believe now...

EMANUEL: I'd say that -- you know, I want to be careful here, George, because you're dealing with stuff -- and a lot of people are waiting in the next three weeks. It's a big issue. I believe we won't, but I haven't seen the stress tests, so it's -- I want to put a cautionary note there. I do think, based on everything, you know, in our discussions...

STEPHANOPOULOS: You are well-informed.

EMANUEL: I understand I'm well-informed. But that doesn't mean I've seen the stress tests. I do believe we have the resources to handle what the results will be.

STEPHANOPOULOS: And you will avoid any kind of temporary nationalization?

EMANUEL: I think we will be able to avoid that. STEPHANOPOULOS: Let me ask you a final question on...

EMANUEL: And again, obviously -- I want to be careful, George, because this is very important, and rightfully so. I believe we have the resources. I believe, -- not only -- I believe we will not have to deal with nationalization, and that's not the goal, nor do we think that's the right policy objectives here.

STEPHANOPOULOS: Fair enough. Final question on the president's decision, this week, to disclose the documents dealing with terrorist interrogations.

A series of officials who served with President Bush have come out and blasted it, including the former homeland security secretary Michael Chertoff, the former CIA director Michael Hayden. Here's what they had to say.

(BEGIN VIDEO CLIP)

FORMER SECRETARY OF HOMELAND SECURITY MICHAEL CHERTOFF: One is that you're giving terrorists insights into the things they need to prepare for, and they do prepare. And the second thing is you're sending a message to our allies that we are not reliable in terms of safeguarding confidential information.

(END VIDEO CLIP)

STEPHANOPOULOS: Mr. Hayden added that fully half of the information the government has gotten about Al Qaida came from these interrogations. They say that the president's decision has put the United States at risk.

EMANUEL: A couple things, George. First of all, we've banned these techniques and practices -- banned them. Because we didn't think they were consistent with America's security...

(CROSSTALK)

STEPHANOPOULOS: So you don't believe we got this information that Michael Hayden believes we got?

EMANUEL: First let me address the question, OK? Second is, we've enhanced America's image abroad. These were tools used by terrorists, propaganda tools, to recruit new terrorists. And the fact is, having changed America's image does have an impact on our security and safety and makes us stronger.

STEPHANOPOULOS: How do you answer the argument, though, that (inaudible) that this gives them a roadmap to how to resist?

EMANUEL: It's kind of a -- let me say this. One of the reasons the president was willing to let this information out was that already the information was out. So if they're saying that you basically have exposed something, it's been written. Go get the New York Review of Books. It's there.

So the notion that somehow, we're exposing something -- it's already been out. In fact, President Bush let -- allowed -- let it -- allowed a lot of this information out. So the notion that somehow this all of a sudden is a game changer doesn't take cognizance of the fact that it's already in the system and in the public domain. Therefore, it's not new. So the notion that that is something we've built in -- it's already been there.

Number two, it's one of the key tools Al Qaida has used for recruitment. There has been a net cost to America. By changing the way America is seen in the world, which means banning this technique and practice, we have actually stopped them and prevented them from using it as a rallying cry.

STEPHANOPOULOS: Final quick question. The president has ruled out prosecutions for CIA officials who believed they were following the law. Does he believe that the officials who devised the policies should be immune from prosecution?

EMANUEL: What he believes is, look, as you saw in that statement he wrote, and I would just take a step back. He came up with this and he worked on this for about four weeks, wrote that statement Wednesday night, after he made his decision, and dictated what he wanted to see. And Thursday morning, I saw him in the office, he was still editing it.

He believes that people in good faith were operating with the guidance they were provided. They shouldn't be prosecuted.

STEPHANOPOULOS: What about those who devised policy?

EMANUEL: Yes, but those who devised policy, he believes that they were -- should not be prosecuted either, and that's not the place that we go -- as he said in that letter, and I would really recommend people look at the full statement -- not the letter, the statement -- in that second paragraph, "this is not a time for retribution." It's time for reflection. It's not a time to use our energy and our time in looking back and any sense of anger and retribution.

We have a lot to do to protect America. What people need to know, this practice and technique, we don't use anymore. He banned it.

STEPHANOPOULOS: Rahm Emanuel, thank you very much for joining me.

EMANUEL: Thank you, George.

STEPHANOPOULOS: We turn now to Congressman Boehner. And let me get you right on there, Congressman Boehner. What is your response to the president's decision this week? And also, we just heard from Mr. Emanuel that the president wants to move forward, no prosecution for officials who devised the policy.