Transcript: Gibson Interviews Sen. Barack Obama on Bailout

Sept. 25, 2008— -- The following is a transcript of ABC News' Charles Gibson's interview with Sen. Barack Obama on the proposed $700 billion bailout for Wall Street and the status of the first presidential debate, for "World News with Charles Gibson," Sept. 25, 2008.

GIBSON: Senator, what's the hang-up?

OBAMA: Well, I think that there's some core principles where we've made some progress. I'd insisted that we make sure there's strong oversight; I think we've seen some improvements there. I've insisted that we don't use this as a bailout for CEOs and they're not walking away with big bonuses. I think we've made progress there. I insisted that taxpayers should be able to get some upside, so if they've put money in, they can get money out. We've made progress there. And I insisted that homeowners -- that they are benefiting from a plan, as well, so that we can prevent some of the foreclosures and the declining home prices that we've seen. I think we made progress there. There seems to be a sense that we can move forward, but there remains some resistance among certain members of Congress, particularly in the House Republican Caucus. And what I suggested to the president and to Secretary Paulson is that they need to find out more specifically from those parties what it is that they want, because there needs to be a sense of urgency here, we need to get this done.

GIBSON: Well, at about one o'clock, the leaders of the banking committees walked out and said, 'we've got an agreement on principles, this is a bill that will pass both houses and the president will sign.' At four o'clock, you go into a meeting at the White House which is apparently pretty raucous and you walk out at the end and say there's no deal. What happened between one o'clock in the afternoon and four?

OBAMA: I think you're going to have to ask some of those who were objecting to core principles that Secretary Paulson had presented. I think the House Republicans, in particular, suggested that, although they recognized the urgency, they just are not clear that they buy this approach. So, the question I asked was, do we need to start from scratch or are there ways to incorporate some of their concerns? I think that, at this point, the president, the secretary of the Treasury, and those who are expressing some of these concerns have to provide some clarity. There is consensus on the part of Democrats that, as long as we are protecting taxpayers, helping homeowners, we're not bailing out CEOs, and we've got strong oversight, that there should be room there to get something done and get something done quickly.

GIBSON: Sen. McCain said to me just a few moments ago, he's still hopeful. Hopeful that something can be built on the basic administration approach, or, to go back to your question -- is it back to the drawing board?

OBAMA: Well, I -- again. I think that Sen. McCain and the House Republican leadership, the president, I think they're going to have to make a determination as to where they want to go. But, I'm confident that we can get something done. I think it's important for people to recognize that everybody feels a sense of urgency here. I also think it's important for us to push politics out of this for a -- you know -- for the reason that, if we don't deal with the problem soon, then we are putting people's money market accounts, we're putting people's homes, we're putting people's jobs, all in a precarious situation. And there are times when we need to not worry about who's to blame, or who gets credit, but simply move something forward. And you know, frankly, that's one of the concerns I have about as a presidential candidate, being too deeply in these negotiations. I think there's sometimes a tendency to have that distort people's decision-making.

GIBSON: And a corollary question: do we have a debate tomorrow night?

OBAMA: Well, it is my intention to be in Mississippi. And obviously, the biggest priority is making sure that we get this deal done. But I think it's also important to describe to the American people where the next president wants to take the country, and how he is going to deal with this crisis. Keep in mind, either myself or John McCain are going to be in charge of this mess in four months and I think it is critical for the American people, at a time when they have enormous questions, to ask what exactly do you think needs to happen, what's your long-term vision on critical issues, like jobs health care, education? How do we get ourselves more competitive? Also talking about how that relates to our foreign policy. So, there are a host of issues that, I think, need to be presented to the American people. I think the debates can do that. My hope is it goes forward. Keep in mind it's only 90 minutes and I promise you that they will be well spent.

GIBSON: Did you say to Sen. McCain, 'Are you going to be there?'

OBAMA: I think he knows that I'm going to be there, so I hope that he is, as well.