'This Week' Transcript: Goolsbee, Brown & Corker

CORKER: Are you talking to--

(CROSSTALK)

TAPPER: Yes, yes, of course, Senator Corker.

CORKER: Yes. Yes, I mean, I think what -- I think what Austan is saying is he doesn't support it. And I don't either. Let me say this, I want to see as much traded through clearinghouses as possible. I absolutely agree that that needs to occur. We don't want to force those things that are not liquid to be traded on the clearinghouse, but I'm on the side of let's get as much as possible.

The fact is that Senator Brown is in a state where a lot of manufacturing takes place. I'm in a state where a lot of manufacturing takes place. And what people don't I think appreciate so much is that all of these tools are used for capital formation. They help companies hedge their risk. They help companies create capital, and I think if we start drawing lines in the sand where we take these tools away, what we really do is hamper companies' ability to access capital. So I don't think separation is appropriate. I do think clearing as much as possible so that on a daily basis, if somebody is money bad, they have to put money up to be money good or neutral, so that we don't end up in the kind of situation we have with AIG. But I think it hampers our ability, again, to create great companies if we just create an absolute separation.

TAPPER: Unfortunately, that's all the time we have. It was a great debate, and I really thank you, Senator Corker in Chattanooga, Senator Brown in Cincinnati and Austan Goolsbee here in the studio. Thanks so much for joining us. Really appreciate it.

As our roundtable takes their seats, take a look at how Saturday Night Live portrayed the president's speech on Thursday, pitching reform to Wall Street executives.

TAPPER: And we're joined now by our roundtable, as always. George Will, Cynthia Tucker of the Atlanta Journal-Constitution. Paul Krugman of the New York Times and Alexis Glick, former vice president at Fox Business News. Thank you all for joining us.

George, does this legislation end too-big-to-fail?

WILL: No, because that's not the problem. It's -- we all sort of sympathize with Sherrod Brown and Senator Kaufman's idea that if it's too big to fail, it's too big to exist. The problem is it's not scale, it's connectedness that poses so-called system risk. And what people are arguing about is whether or not they have accurately located risk to the entire system.

This is an unusual argument. Usually in Washington when there's controversy about a bill, the two sides agree about what the bill does but not whether it ought to be done. In this case, there's an argument about whether or not the bill will actually do what it sets out to do.

Both sides want to guarantee the obliteration of certain kinds of failed firms. They want the management to go and they want shareholder equity to disappear. So it's a competition to see who can be most beastly to these bad companies. And the question is whether or not this happens.

TAPPER: Cynthia, it's unclear right now if there's going to be a bipartisan compromise, but you heard Senator Corker say that the negotiations should continue. You don't really have a lot of faith in that.

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