The festive season is over and Donald Trump is back to fighting his war of words against Rosie O'Donnell.

The wealthy businessman and the woman's talk show host have been at odds with each other since O'Donnell criticized his actions with Miss USA and The Donald called her "ugly".

Now, "The View" executive producer and star Barbara Walters is setting the record straight in a very diplomatic way.

The journalist has welcomed 2007 by defending both parties on her popular opinion show.

Walters read out a statement issued by ABC, the network behind her show, clarifying a portion of the argument where O'Donnell attacked his finances. She said, "Just to clarify things, and I quote: Donald Trump has never filed for personal bankruptcy. Several of his casino companies have filed for business bankruptcies. They are out of bankruptcy now. That's the end of the quote."

Walters continued, telling the audience that there are no hard feelings between her and the newest panel member O'Donnell. She said, "But while I am clearing things up, Donald Trump also said that I am not happy with my decision to bring Rosie O'Donnell to this table. Nothing could be further from the truth. I have never regretted, nor do I now, the hiring of Rosie O'Donnell."

However, The Donald was not so tactful in his rebuttal. The media loving real estate mogul took to "Inside Edition" to give his two cents on the situation.

Of the defense of his financial status, he said, "They were afraid they were going to be sued, they know it was the truth and I respect ABC for doing that."

He was not so agreeable with the Walters/O'Donnell relationship, however. Trump stands by his statement that Walters regrets hiring her.

He said, "As Barbara well knows, that is not what she told me. However, I fully understand why Barbara has to say that, she has no other choice. What is she going to say, "I told Donald Trump some negative things about Rosie?"

Walters then continued her support for the fiery brunette, saying, "She has brought a new vitality to the show, and the ratings prove it."

O'Donnell, who is currently holidaying with her partner and their children, will return to television screens next week.

Walters and the studio audience both expressed their eagerness to see her return, saying, "Next Monday we will all welcome her back with open arms, yes?"

The women at the desk and the audience both erupted in applause.

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