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CNBC EXCLUSIVE: CNBC TRANSCRIPT: SENATOR JUDD GREGG, COMMERCE SECRETARY NOMINEE INTERVIEWED ON CNBC'S "THE CALL" TODAY

WHEN: Today, Wednesday, February 4th at 11:30AM

WHERE: CNBC's "The Call"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Commerce Secretary Nominee Senator Judd Gregg on CNBC's "The Call" today.

All references must be sourced to CNBC.

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REGAN: YESTERDAY ON "THE CALL" YOU SAW PRESIDENT OBAMA NOMINATE REPUBLICAN SENATOR JUDD GREGG OFNEW HAMPSHIRE AS COMMERCE SECRETARY.THE PRESIDENT CALLING HIM A PERSUASIVE AMBASSADOR FOR INDUSTRY WHO MAKES IT KNOWN THAT AMERICA IS OPEN FOR BUSINESS. WE WELCOME NOW THE COMMERCE SECRETARY NOMINEE TO "THE CALL."GREAT TO SEE YOU, SENATOR GREGG.

GREGG: A PLEASURE TO BE HERE.

REGAN: MY FIRST QUESTION IS YOU ARE A REPUBLICAN WITH A VERY FISCAL CONSERVATIVE BACKGROUND.YOU WILL BE WORKING IN A DEMOCRATIC ADMINISTRATION. NOW, HISTORICALLY THESE TWO PARTIES HAVE HAD VERY DIFFERENT APPROACHES TO THE ECONOMY, SO HOW DO YOU AS A FISCAL CONSERVATIVE WORK IN A MORE LIBERAL ECONOMIC ENVIRONMENT?

GREGG: WELL, IT'S GOING TO BE INTERESTING, ISN'T IT?BUT BASICALLY WE'RE IN SUCH A DIFFICULT WAY, AND WE'VE GOT SO MANY CHALLENGES NOW, I THINK IT'S NECESSARY WE WORK TOGETHER.YOU KNOW, STANDING IN OUR IDEOLOGICAL CORNERS AND SHOUTINGAT EACH OTHER ISN'T GOING TO GET ANYTHING DONE.WE NEED TO GOVERN AND GOVERN WELL, AND WHEN THE PRESIDENT ASKS YOU TO DO SOMETHING, MY VIEW IS YOU TRY TO DO IT.HE ASKED ME TO DO THIS JOB.PART OF HIS ASKING WAS HE WANTED MY VOICE IN THE ROOM AS A STATEMENT OF A PHILOSOPHY THAT HE COULD LISTEN TO AND THEN MAKE DECISIONS RELATIVE TO THAT IDEA ALONG WITH THE OTHER IDEAS PUT FORWARD TO HIM.

GREGG: YOU HAVE A LOT OF INFLUENCE WITHIN THE REPUBLICAN PARTY.YOU'VE BEEN A SENATOR FOR MANY YEARS.WITH THAT IN MIND, HOW MIGHT YOUR CONNECTIONS AND YOUR INFLUENCE HELP OR SHAPE THE STIMULUS BILL AS IT NOW STANDS IN THE SENATE?

GREGG: WELL, I'M NOT REALLY ENGAGED IN THE STIMULUS BILL.I THINK WE NEED ONE.WE NEED A ROBUST ONE.I THINK THE ONE THAT'S PENDING IS IN THE RANGE WE NEED. I DO BELIEVE IT'S A GOOD IDEA TODO IT AT TWO LEVELS, WHICH THIS BILL BASICALLY DOES, WHICH IS IMMEDIATE STIMULUS AND LONG-TERM INITIATIVES WHICH ACTUALLY IMPROVE OUR COMPETITIVENESS AND OUR PRODUCTIVITY.I HAVEN'T BEEN APPOINTED --

REGAN: WILL YOU BE VOTING THEN?

GREGG: NO ACTUALLY I HAVE RECUSED MYSELF FROM VOTING DURING THE PENDENCY OF MYNOMINATION.

KUDLOW: SENATOR GREGG, CAN WE REVISIT THAT? IT'S GREAT TO SEE YOU. I'M GLAD YOU GOT WHAT YOU WANT, FOR HEAVEN'S SAKE.YOU'RE A WONDERFUL PERSON.

GREGG: WELL, I WAS ASKED TO DO IT, LARRY.

KUDLOW: I UNDERSTAND. BUT YOU DON'T APPROVE OF THIS STIMULUS PACKAGE.YOU'RE A GUY WHO WANTS LOWER SPENDING, LOWER TAXESS, LOWER DEFICITS, LOWER DEBT. BEFORE YOU GOT APPOINTED TO THISJOB, YOU WERE AGAINST THE HOUSE DEMOCRATIC PACKAGE, WHICH IS A LOT LIKE THE SENATE DEMOCRATIC PACKAGE WHICH PRESIDENT OBAMA DEFENDED TODAY.I DIDN'T HEAR ANY OLIVE BRANCH.I DIDN'T HEAR ANY ACCOMMODATION. WHAT ARE YOU GOING TO DO HERE? YOU'RE GOING TO GO OUT AND SELL SOMETHING THAT YOU FUNDAMENTALLYHAVE WORKED AGAINST FOR 25 YEARS?

GREGG: NO. I'M GOING TO SUPPORT SOMETHING THAT I THINK MAKES SENSE, AND I THINK A MAJOR STIMULUS PACKAGE, AND I HAVE SAID THAT ALL ALONG, MAKES A LOT OF SENSE AND THE SENATE IS STILL WORKING ITS WILL AND I EXPECT IT WILL COME UP WITH AN EVEN STRONGER PACKAGE THAN THE PACKAGE THAT LEFT THE HOUSE. IF WE DON'T GET THIS ECONOMY GOING, THE NUMBERS THAT REPRESENT THIS STIMULUS PACKAGE ARE GOING TO BE SMALL COMPARED TO THE LOSS OF REVENUES TO THE FEDERAL GOVERNMENT FOR OUR ECONOMY --

KUDLOW: OKAY. BUT SENATOR GREGG, HAVE YOU JUSTHAD AN EPIPHANY? HAVE YOU HAD A BURNING BUSH KEYNESIAN EXPERIENCE WHICH SAYS NOW IS THE TIME TO PUT A TRILLION DOLLARS OF SPENDING ON THE BOOKS?THAT'S NOT YOU.THAT'S NOT THE JUDD GREGG I HAVE KNOWN FOR ALL THESE YEARS.

GREGG: ACTUALLY, I HAVE BEEN SUPPORTIVE OF A VERY ROBUST STIMULUS PACKAGE FROM DAY ONE.I THINK THIS ECONOMY HAS TO HAVE A MAJOR STIMULUS INITIATIVE BECAUSE THE ONLY GROUP WITH LIQUIDITY IS THE FEDERAL GOVERNMENT.

REGAN: YOU KNOW THAT'S AN INTERESTING POINT AND WE HAVE HEARD THAT FROM A NUMBER OF PEOPLE. THE ONLY ONE WHO IS WILLING TO PUT ANY MONEY ON THE LINE IS THE FEDERAL GOVERNMENT BECAUSE EVERYONE IS SO WORRIED.

GREGG: RIGHT. AND IF YOU DON'T GET THISECONOMY GOING AND THE ONLY JUMP STARTER AROUND HERE, THE ONLY GROUP THAT CAN PUT LIFT UNDER THIS IS THE FEDERAL GOVERNMENT, IF YOU DON'T GET IT GOING THE LOSS IN FEDERAL REVENUES WILL FAR EXCEED THE PACKAGE.

FRANCIS: WHAT CHANGES WOULD YOU LIKE TO SEE MADE TO THE STIMULUS PLAN?

GREGG: WELL, I HAVE SAID I THINK WE NEED TO PUT MORE TARGETED EFFORTON THE REAL ESTATE SIDE WHERE WE BALANCE AND BASICALLY LOOK AT HOW WE CONTROL THE PRICE OF REAL ESTATE SO PEOPLE HAVE MORE CONFIDENCE IN THE VALUE OF THEIR HOME BECAUSE I THINK CONFIDENCE IS WHAT'S LACKING IN OUR COMMUNITY RIGHT NOW.PEOPLE DON'T HAVE A SENSE OF CONFIDENCE AND THEIR HOME IS THEIR NUMBER ONE ASSET, AND, THEREFORE, IF THE VALUE OF THEIR MORTGAGE EXCEEDS THE VALUE OF THEIR HOME THEY'RE VERY WORRIED.

FRANCIS: SO YOU WOULD LIKE TO SEE PRINCIPAL REDUCED?

GREGG: I WOULD LIKE TO SEE US WORK VERY HARD TO SEE THAT PEOPLE WHO ARE OWNER OCCUPANTS, THAT WE ADJUST THE MORTGAGES IN A WAY THAT ALLOWS THEM TO MAINTAIN -- TO STAY IN THEIR HOMES RATHER THAN BE FORECLOSED ON.

REGAN: LET ME JUMP IN HERE. YOU'VE BEEN STEEPED IN THE BANKS' TROUBLES GOING ALL THE WAY BACK TO SEPTEMBER 15th AND YOU WERE A BIG SUPPORTER OF T.A.R.P. AFTER THE LEHMAN COLLAPSE. WE'RE TALKING NOW ABOUT AN ADDITIONAL $350 BILLION THAT NEEDS TO BE PUT TO WORK OR PEOPLE ARE TRYING TO GET PUT TO WORK. DO YOU THINK IT IS CRITICAL, IN OTHER WORDS IF WE DON'T SEE THAT MONEY GET PUT INTO THE BANKING SYSTEM WITH THESE TOXIC ASSETS COMING OFF THE BANKS' BOOKS, AREWE IN JEOPARDY OF SEEING ANOTHERBANK FAILURE?

GREGG: I THINK WE NEED TO TAKE THREE APPROACHES. FIRST, WE ABSOLUTELY HAVE TO DO THAT. WE ABSOLUTELY HAVE TO SUPPORT THE FINANCIAL SYSTEM BECAUSE YOU NEED A FINANCIAL SYSTEM THAT'S FUNCTIONING, THAT'S ABLE TO DELIVER CREDIT THAT'S READILY AVAILABLE AND A GOOD PRICE. SECONDLY YOU DO NEED A STIMULUS PACKAGE I WANT TO MAKE THAT VERY CLEAR WE NEED THIS TYPE OF STIMULUS PACKAGE WE NEED A MAJOR STIMULUS INITIATIVE I HAVE BEEN FOR THAT FROM THE GET GO AND THIRD YOU NEED TO ADRESS THE REAL ESTATE THE UNDERLYING QUESTION OF HOW YOU TRY TO PUT SOME BASE ON THE REAL ESTATE BECAUSE THAT NOT ONLY GIVES PEOPLE CONFIDENCE BUT IT ALSO ADDRESSES THE ASSET VALUE

REGAN: THERE'S BEEN A LOT OF FOCUS ON TREASURY WHAT DO YOU SEE AS THE CHARTER FOR THE COMMERCE DEPARTMENT OVER THE NEXT FOUR YEARS AND HOW DO YOU SEE THE TWO WORKING TOGETHER

GREGG: WELL THE WAY WHAT I WAS ASKED TO DO IN THIS EXERCISE WAS BASICALLY TO COME DOWN AND PRESENT MY EXPERTISE ON FISCAL POLICY BUT ESPECIALLY ON IN THE AREA OF ENTITLEMENTS WE ARE FACING NOT ONLY THIS IMMEDIATE FISCAL CRISIS BUT IF OUR CREDIT IS GOING TO BE GOOD AND OUR DOLLAR IS GOING TO BE STRONG WE'VE GOT TO ADDRESS THE LONG TERM SUNAMI THAT IS COMING AT US WHICH IS ENTITLEMENTS AND I HAVE BEEN VERY AGGRESSIVE IN ADDRESSING ENTITLEMENT REFORMS THE PRESIDENT HAS STEPPED UP ON THIS ISSUE IN A VERY ALSO AGRESSIVE WAY AND SAID HE GOING TO TAKE ON THIS ISSUE AND HE SPECIFICALLY ASKED ME TO COME DOWN TO ADDRESS THAT ITEM

KUDLOW: SENATOR CAN I COME BACK TO THIS BEFORE WE GET TO ENTITLEMENT REFORM WHICH IS VERY IMPORTANT I APPRECIATE THAT

GREGG: YOU'VE GOT TO GET IT IF YOU'RE GONNA STABILIZE THE DOLLAR AND YOU GONNA MAKE SURE CREDIT PEOPLE WANT TO BUY OUR DEBT

KUDLOW: WELL ALRIGHT ENTITLEMENT IS GOING TO COME LATER THOUGH. LOOK LET ME ASK YOU THIS LAST NIGHT I TALKED TO SENATOR JOHN MCCAIN HE WANTS TO SLASH CORPORATE TAX RATES FOR SMALL AND LARGE BUSINESSES HE WANTS A PAYROLL TAX HOLIDAY FOR EMPLOYEES HE ALSO WANTS TO TRIM THE DOMESTIC SPENDING BY $200 BILLION DOLLARS MAY I ASK YOUR OPINION OF THE MCCAIN PLAN?

GREGG: JOHN'S A BRILLIANT GUY AND HE WAS A GOOD CANDIDATE FOR PRESIDENT AND IF HE COULD PASS IT I CERTANLY WOULD TAKE A HARD LOOK AT IT.

KUDLOW: UH THAT'S A HEDGE

GREGG: IT IS OF COURSE A HEDGE

KUDLOW: WOULD YOU ADVISE

GREGG: ITS NOT MY PLAN ITS HIS

KUDLOW: PRESIDENT OBAMA TO MAKE THAT KIND OF COMPROMISE A LOT OF PEOPLE ARE COUNTING ON YOU TO BRING SOME NEW SANITY TO THE INSIDE ON THE ECONOMIC POLICY GROUP WOULD YOU ADVISE PRESIDENT OBAMA TO ADOPT A LOWER SPENDING KARGER TAX CUT PACKAGE AND BY THE WAY MCCAIN HAS GRAHAM LUBMAN LIMITS ON THAT AFTER TWO YEARS WOULD YOU ADVISE THAT KIND OF APPROACH?

GREGG: I'M NOT GOING TO DISCUSS WHAT I AM GOING TO COUNSEL THE PRESIDENT BUT I THINK YOU CAN LOOK AT MY RECORD AND SEE THAT MY COUNSEL TO THE PRESIDENT WILL BE AND IT IS OBVIOUSLY FOR FISCAL RESPONSIBILITY AND AN ATTEMPT TO MAKE THIS COUNTRY MOVE FORWARD AND CREATE JOBS FOR PEOPLE.

KUDLOW: THAT'S WHAT WE ARE HOPING THAT YOU KEEP THE PRINCIPALS OF YOUR LONG AND OUTSTANDING RECORD THAT IS WHAT WE ARE ALL HOPING SIR

GREGG: WELL I THINK I AM GOING TO TRY AND I THINK YOU CAN BE SURE I WILL STICK TO MY PRINCIPLES BUT I WILL DO IT FROM WITHIN TENT AND THEREFORE I AM NOT GOING TO DISCUSS WHAT I WILL OFFER AS

KUDLOW: I TRIED I TRIED

REGAN: THERE ARE REALLY UNPRECEDENTED TIMES I MEAN

GREGG: WE'VE ALL GOT TO PULL IT TOGETHER THAT'S MY VIEW WE'RE ALL IN THIS BOAT WE'VE GOT TO START ROWING T SHORE TOGETHER OR ELSE WE'RE NOT GOING TO MAKE IT TO SHORE

REGAN: SEE SOME OF THAT BIPARTISANSHIP WELL WE TRULY APPRECIATE YOU COMING ON THE CALL TODAY IT WAS GREAT TO SEE YOU

GREGG: GREAT TO SEE YOU PLEASURE



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