Mitt Romney Lambasts Auto Industry Bailout

Ex-Mass. Governor's approach would have included a structured bankruptcy.
2:45 | 02/23/12

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Transcript for Mitt Romney Lambasts Auto Industry Bailout
I first -- First of all of -- let's go back in the auto industry. And and go back to 2000 others 2008. President Bush was still in office and the three chief executive officers of the three major auto companies got in their private planes and flew to Washington. And said please write us -- check -- that they wanted fifty billion dollars. And I wrote an op Ed the Paper and I said absolutely not don't write a check for fifty billion dollars these companies need to go through a managed bankruptcy. Just like airlines have just like other industries have go to a managed bankruptcy. And and they -- -- -- that managed bankruptcy and shed the excess of cost has been put on them by the UAW and buy their own mismanagement. Then -- they need help coming out of bankruptcy the government can provide guarantees and get them back on their -- no way would we allow the auto industry in America. -- totally implode and disappear that was my -- go through bankruptcy. When that happens then the market can -- -- lift them out. With regards to read to TARP is very simple there are that the Wall Street like I don't wanna say many Wall Street bank. -- to wanna make sure we lose all of our banks and liked by President Bush at the time I was concerned that if we didn't do something that was a pretty high risk. But not just Wall Street banks but all banks -- collapse -- like many other people many other economists they were concerned that our entire currency system would go down. My view is this. We have to have industries to get in trouble go through bankruptcy as senator you voted in favor of the bailout of the airline industry after nine elevenths -- that was a right thing to do. It was an emergency. He also voted for the bailout of the steel industry I don't think I agree with -- but I do believe that the right course for the auto industry was to go -- -- managed bankruptcy process and then to get help get now. It's gonna let me ask -- you mention. You mentioned President Bush's position. On the Wall Street -- If you talk to people in the Bush Administration at the time they say they would have preferred to structured bankruptcy route that you talked about but -- there was no private capital available -- the nobody would give the auto companies money and of their choice they say at the time. Was to either give the government money or have -- liquidate -- if it was really a distinct. Because of what what -- I wrote my piece and I said look these companies need to go to managed bankruptcy. And the head of the UAW said we can't go through managed bankruptcy the industry will disappear if that happens and the politicians -- Obama's people all know we can't -- -- managed bankruptcy six months they wrote. I think this seventeen billion dollars in checks to the auto companies I finally realized I was right. They finally put into managed bankruptcy that was a time they needed help to get out -- managed bankruptcy those monies they put -- before hand work. But Webb was a waste of money and number two. Because they put that money and the president gave the companies to the UAW they were part of the reason the companies were in trouble. Given these companies to the UAW was wrong.

This transcript has been automatically generated and may not be 100% accurate.

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