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Posts Tagged ‘Automaker Bailout’

To the Rescue: Bush to Give Low-Interest Loans to Carmakers

Obama Team Agrees to Bush’s Strategy

The White House has come to the rescue of beleaguered General Motors and Chrysler by providing them with $17.4 billion in low-interest loans, ABC News has learned.

“In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action,” President Bush said today. “It could send our suffering economy into a deeper and longer recession. And it would leave the next president to confront the demise of a major American industry in his first days of office.”

The money for the loans will come from the Troubled Asset Relief Program fund, signed into law this fall to bail out the financial industry.

The Treasury Department will provide $13.4 billion in short-term financing in December and January and plans to make another $4 billion available in February, provided Congress allows the White House to reach into the second half of the $700 billion TARP fund.

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Sen. Christopher Dodd, D-Conn., Chairman of the Senate Committee on Banking, Housing and Urban Affairs, left, flanked by Sens. Carl Levin, D-Mich., Christopher Bond, R-Mo., George Voinovich, R-Ohio, Debbie Stabenow, D-Mich, and Sherrod Brown, D-Ohio, speaks with members of the media following the Senates rejection of an emergency $14 billion loan bailout for US auto companies, Thursday, Dec. 11, 2008, on Capitol Hill in Washington. (AP Photo/Haraz N. Ghanbari)

Sen. Christopher Dodd, D-Conn., Chairman of the Senate Committee on Banking, Housing and Urban Affairs, left, flanked by Sens. Carl Levin, D-Mich., Christopher Bond, R-Mo., George Voinovich, R-Ohio, Debbie Stabenow, D-Mich, and Sherrod Brown, D-Ohio, speaks with members of the media following the Senate's rejection of an emergency $14 billion loan bailout for US auto companies, Thursday, Dec. 11, 2008, on Capitol Hill in Washington. (AP Photo/Haraz N. Ghanbari)

Auto Bailout: White House Considers Using Wall Street Bailout Funds

KEN THOMAS and JULIE HIRSCHFELD DAVIS| December 12, 2008 12:45 PM EST | AP

WASHINGTON — Under mounting pressure to act, the Bush administration said Friday it was ready to step in and prevent the U.S. auto industry from collapsing after the Senate refused to pass a rescue bill endorsed by the White House and congressional Democrats. The most obvious source of help was the Wall Street bailout fund.

“The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,” White House press secretary Dana Perino said.

Treasury spokeswoman Brookly McLaughlin said, “Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry.”

Several administration officials said no specific announcement of a bailout was imminent, suggesting there was still time before General Motors Corp. and Chrysler LLC, the companies in most peril, would run out of cash. These officials spoke on condition of anonymity, saying they were not authorized to discuss internal deliberations.

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Doug Mills/The New York Times  Speaker Nancy Pelosi, with Rep. Barney Frank, spoke on Monday about the possible bailout plan for automakers.

Doug Mills/The New York Times Speaker Nancy Pelosi, with Rep. Barney Frank, spoke on Monday about the possible bailout plan for automakers.

Auto Bailout Deal Advances as Democrats Offer Draft Bill

Published: December 8, 2008

WASHINGTON — An agreement between the White House and Congressional Democrats over the shape of a rescue plan for the auto industry advanced on Monday, with Congressional Democrats calling for a taxpayer-financed plan that would be directed by one or more appointees of President Bush.

According to draft language being circulated on Capitol Hill, the Democrats would call for an overseer, also known as a “car czar,” with expertise in such areas as “economic stabilization, financial aid to commerce and industry, financial restructuring, energy efficiency and environmental protection.”

The United Auto Workers union, meanwhile, is planning to seek a stake in General Motors and a seat on its board in exchange for concessions by its members.

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