ED SCHULTZ: So, how fierce is this fight?

Joining me tonight right here on THE ED SHOW is Congressman Barney Frank, chairman of the Financial Services Committee and the a member of the Progressive Caucus.

Congressman, good to have you with us tonight.

REP. BARNEY FRANK (D), MASSACHUSETTS: Thank you, Ed. Great to be here.

SCHULTZ: What's the beef right now with the conservative Democrats, the Blue Dogs? What is causing the ruckus with your side of the caucus?

FRANK: Well, it's not-in my case, I don't recall it as a betrayal, as a deep philosophical difference.

Look, there are conservative Democrats who are closer to us than they are to the Republicans on some issues, but there are differences on orders. I believe that the majority of Democrats, enough to pass the House, disagree with them.

And the deal that was made today, people should understand three committees have voted on this. Two of the three committees in the House came out with bills that we on the liberal side support.

This bill, the only way to get it out of the committee was to make this kind of compromise. But no one's bound to it, including, by the way, the Blue Dogs. They say they're not bound to it. So, I am confident that the final bill is going to be a much better one.

What we have is a kind of philosophical disagreement, although I have to say it's an odd one. You know, if you accepted their views about what was and wasn't acceptable, we wouldn't have Medicare. And Medicare goes far beyond even a public option. So, there's a kind of a disconnect in people's minds. And by the way, when people tell me that they don't want the government involved in medicine, I respond that in my experience as a member of Congress, the single most popular form of medical care that's administered according to the consumers is the Department of Veterans Affairs, which is wholly government.

SCHULTZ: All right, Congressman. You've covered a lot of ground here tonight, which is good, but the bottom line here is, is that, is your side of the caucus willing to draw that line in the sand and say, look, you conservative Democrats, you Blue Dogs, you've got too far, we've given in too much? And Congressman, do you think your side has given in too much?

FRANK: No. On what? I haven't given in too much.

I'm going to put a bill through the House tomorrow that's in the committee that's going to have the most severe restrictions on excessive executive compensation we've seen in a long time. And I think we put through some other important things.

Now, we did lose out in the Senate to three Republicans who reduced the economic recovery package by $25 billion, but that was because of that silly 60-Senate filibuster rule. But yes, we are definitely-I don't think they would be able to get the bill that came out of Energy and Commerce through the House.

SCHULTZ: But Congressman, would you ever sign onto the co-op plan they're talking about over in the Senate? Could you ever embrace that?

FRANK: No. I would only support-look, I'm for single payer, as I think Medicare has shown is the best system. I will accept as second best a very good public option, which, by the way, when the conservatives say the public option may lead to a totally public plan, they're conceding our point, mainly that that people will find that there's a better level of care and better ways.

But I would not accept anything less than a very vigorous public option, and I don't think a majority of the House will either. I don't think that the plan that passed Energy and Commerce-and I understand what they needed to do to get it out (ph) of that committee. It would not pass the House.

SCHULTZ: Congressman Franks, great to have you with us tonight. Thanks for your time.

FRANK: Thank you.