SCHULTZ: Welcome back to THE ED SHOW.

Goldman Sachs has been getting some bad press for dragging us into a recession, being a part of it, taking taxpayer money, and then giving it to employees. I mean, outlandish bonuses. So now they‘re trying to buy their way back into the problem by throwing a bone to small business?

First, Goldman‘s CEO apologized, saying, “We participated in things that were clearly wrong and have reason to regret.” I guess so.

He then announced the company is investing $500 million to help out small businesses. Of course, that‘s still only three percent of the $16.7 billion Goldman set aside for their employee bonuses this year.

Meanwhile, some Democrats in the Congress are pushing to direct the unspent TARP money to small business, homeowners and infrastructure projects.

Congressman Peter DeFazio of Oregon is with us on that issue tonight.

Congressman, good to have you on.

REP. PETER DEFAZIO (D), OREGON: Thanks, Ed.

SCHULTZ: Now, what kind of progress can be made to make sure that TARP money goes where it‘s really going to stimulate the economy—small business and infrastructure?

DEFAZIO: Well, that‘s our money. It was borrowed in the name of the American people. It was borrowed to bail out Wall Street, which has worked famously for Goldman Sachs and others.

You know, we think it‘s time, maybe, that we turn our focus to Main Street. We reclaim the unspent funds, reclaim some of the funds that are being paid back, which will not be paid back in full, and we use it to put people back to work.

Rebuilding America‘s infrastructure is a tried and true way to put people back to work. Unfortunately, the president has an adviser from Wall Street, Larry Summers, and a treasury secretary from Wall Street, Timothy Geithner, who don‘t like that idea. They want to keep the TARP money either to continue to bail out Wall Street if there are future problems or maybe…

SCHULTZ: So Geithner does not want to give the money to small business the TARP money?

DEFAZIO: No, they‘re saying they‘re got to keep the money. There may be more needs on Wall Street, or maybe they should use it to pay down the deficit. That‘s absurd. We borrowed the money. How do you pay down the deficit?

SCHULTZ: Should he stay in his job, Congressman?

DEFAZIO: No.

SCHULTZ: You think Tim Geithner should be gone as treasury secretary?

DEFAZIO: I do, especially if you look back at the AIG scandal and Goldmans and the others who got their bets paid off in full. Instead of saying, well, you bet, you lost, they got paid back in full with taxpayer money through AIG. We channeled the money through them.

Geithner would not answer my question when I said, “Were those naked credit default swaps by Goldman or were they a counter party?” He said, “I will not answer that question.”

I think they were naked credit default swaps. They were bets. They should not have gotten their money back.

SCHULTZ: So he‘s not coming clean with the Congress?

DEFAZIO: Absolutely not.

SCHULTZ: OK. So have you asked the Obama administration to remove him, or will you?

DEFAZIO: The populist caucus is considering questions regarding both him and some other members of the economic team in the near future.

SCHULTZ: OK. So, there has been talk in the halls of Congress amongst some progressive Democrats that maybe it‘s time to ask the Obama administration to remove Tim Geithner. Am I hearing that correctly?

DEFAZIO: Yes. He‘s being failed by his economic team. Their total orientation is Wall Street, not Main Street, not real jobs.

I mean, OK, let‘s get past all the Goldman bailout and all that stuff. I‘ve got firms in my district that are solvent, very little debt, and they can‘t get money out of bailed-out firms…

(CROSSTALK)

SCHULTZ: No, credit is tight. It‘s incredible.

DEFAZIO: Yes. Like Wells Fargo.

SCHULTZ: It‘s absolutely ridiculous.

Well, what was this announcement a few weeks ago that they were going to get money to the community banks? Where the hell‘s that?

DEFAZIO: Good question. I can‘t tell you. It‘s lost somewhere…

SCHULTZ: So, they made an announcement that they were going to get this TARP money to community banks, but you don‘t know where that is right now?

DEFAZIO: Nope. We‘re still waiting. There‘s no new lending to my small businesses in my communities.

SCHULTZ: And how many congressmen in the House do you think would go along with Geithner‘s removal?

DEFAZIO: Well, when you mention either Geithner or Larry Summers, as they were mentioned in the Democratic Caucus on jobs on Monday night, there is—there are boos and cries of derision. I think there‘s a growing consensus in the caucus, we need a new economic team that cares more about jobs, Main Street and the American people than it does about Wall Street and huge bonuses.

SCHULTZ: I‘ll tell you what, Congressman, this jobs summit thing coming up in the White House in December, it‘s like the Super Bowl of the economy. Or at least a major playoff game. That‘s how I see it.

DEFAZIO: Well, we may have to sacrifice just two more jobs to get millions back for Americans.

SCHULTZ: I hear you.

Congressman Peter DeFazio.

Good to have you with us tonight. Thank you.

DEFAZIO: Thanks, Ed.