When: Monday, September 8th at 7:15AM ET
Where: CNBC'S "Squawk Box"
Following is the unofficial transcript of a CNBC interview with Secretary of Treasury, Henry Paulson.
All references must be sourced to CNBC.
QUINTANILLA: BREAKING NEWS THIS MORNING. WE HAVE HANK PAULSON. STEVE LEESMAN IS THERE LIVE. WE'LL GO TO HIM NOW.
LIESMAN: I'M HERE WITH HANK PAULSON AT THE TREASURY AND THERE'S MORE THAN A FEW QUESTIONS HERE FOR THE TREASURY SECRETARY.THANK YOU FOR JOINING US, SIR.
PAULSON: STEVE, IT IS GOOD TO BE WITH YOU.
LIESMAN: DO YOU REALLY MEAN THAT?
PAULSON: I MEAN IT, YES.
LIESMAN: THE FIRST QUESTION PEOPLE WANT TO KNOW IS HOW MUCH WILL THIS COST TAXPAYERS AND HOW DO YOU GO ABOUT COUNTING THAT?
PAULSON: WELL, WE OBVIOUSLY DON'T KNOW THAT YET. TO SAY TO THE TAXPAYERS, IF AND WHEN WE PUT MONEY IN, THE TAXPAYER IS GOING TO BE PROTECTED AND THE GOVERNMENT WILL BE REPAID BEFORE THE SHAREHOLDERS GET A PENNY, NUMBER ONE, AND I THINK -- YOUR QUESTION ULTIMATELY IS GOING TO BE ANSWERED BY HOW LONG WILL IT TAKE FOR HOUSING PRICES TO STABILIZE IN OUR ECONOMY TO COMEBACK AND THE HOUSING MARKETS TO COME BACK. OF COURSE, THESE THINGS WILL ULTIMATELY HAPPEN AND IT MAY NOT TAKE TOO LONG FOR THEM TO HAPPEN.I REALLY BELIEVE THIS IS AN IMPORTANT STEP THAT WILL BE HELPFUL, BECAUSE REMEMBER, THE FIRST THING WE ARE DOING IS STABILIZING THE COMPANIES AND THEY ARE GOING TO BE RUN TO DO WHAT THEY DO WELL, TO PROVIDE MORTGAGE FINANCING FOR AMERICANSTHROUGHOUT THIS COUNTRY. I THINK A GOOD VIBRANT MORTGAGE MARKET, AVAILABILITY OF MORTGAGE FINANCE, IS VERY IMPORTANT IN INGREDIENTS TO THE HOUSING RECOVERY.YOU HAVE HEARD ME SAY BEFORE THAT THE HOUSING DOWNTURN IS AT THE HEART OF THE PROBLEMS THAT OUR ECONOMY IS FACING RIGHT NOW. UNTIL THE BULK OF THE CORRECTION IS BEHIND US, WE ARE GOING TO CONTINUE TO HAVE STRESS AND TURMOIL IN OUR FINANCIAL MARKETS.
LIESMAN: SORRY, BUT I HAVE TO COME BACK TO THIS.THERE MUST BE SOME ANALYSIS IN YOUR MIND, IS IT IN THE TENS OF BILLIONS, IN THE HUNDREDS OF BILLIONS, HOW MUCH ARE YOU PREPARED TO PAY?
PAULSON: I DON'T -- THERE IS NO SPECIFIC ANALYSIS.THIS WAS NOT -- WE DIDN'T SIT THERE AND FIGURE THIS OUT WITH ACALCULATOR.THIS WAS ABOUT OUR FINANCIAL MARKETS, IT WAS ABOUT CONFIDENCE IN THE FINANCIAL MARKETS, CONFIDENCE IN OUR ECONOMY, AND THE VALIDITY OF THE MORTGAGE FINANCE.
LIESMAN: I THINK WE HAVE TO TALK ABOUTSOME OF THE CHARGES OUT THERE ABOUT THE POLITICS RELATIVE TO THE TIMING.SOME PEOPLE SAY, HAY, WAIT A SECOND, THIS FOLLOWED THE REPUBLICAN CONVENTION AND IT IS VERY FAR FROM THE ELECTION.DID THAT PLAY A ROLE IN WHEN YOUDECIDED TO MOVE?