Congress: Work on bailout continues

Posted: Monday, December 08, 2008 9:27 AM by Domenico Montanaro
Filed Under: Congress

Congress is putting together a minimal package to keep the auto industry afloat for another few months. "The proposal, which could be put to a vote in Congress as soon as tomorrow, would establish a seven-member ‘auto board’ of Cabinet officials and a chairman to be appointed by President Bush to oversee both the short-term loans and a long-term effort to restore the faltering industry to profitability. If the companies take the cash, they would be accountable to the government for nearly every move, and for every transaction of $25 million or more.”

Video: GM’s Bob Lutz discusses the state of the U.S. auto industry and its pursuit of financial aid.

“As part of that restructuring, General Motors, Chrysler and Ford could be asked to jettison their top executives, one of the chief architects of the plan, Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.), said yesterday. Stating bluntly that ‘GM is in the worst shape’ of the three auto giants, Dodd said that GM chairman G. Richard Wagoner Jr., the company's chief since 2000, ‘has to move on.’”

Yesterday's Sunday show appearances by Banking Committee Chairman Chris Dodd and Sen. Carl Levin indicated optimism from Dems that at least $15 billion in emergency loans to automakers would pass the Senate, but some Republicans are still pushing back against another industry bailout.

The Los Angeles Times looks at the "bind" Speaker Pelosi is in over the Charlie Rangel situation. "Rangel, 78, is poised to be a highly visible player in rushing the stimulus package through the House. The committee he leads considers tax legislation, and the stimulus plan is expected to include some form of middle-class tax relief. But Rangel could be assuming the limelight just as the ethics panel issues its report, risking political embarrassment for Pelosi, who had criticized the corruption scandals that plagued Republicans such as Reps. Bob Ney of Ohio and Randy ‘Duke’ Cunningham … while the GOP controlled Congress."

More: "if Pelosi were to ask Rangel to surrender his chairmanship, she would risk the wrath of the Congressional Black Caucus. Some in the caucus were unhappy when Pelosi forced the indicted Rep. William J. Jefferson (D-La.) from the Ways and Means Committee. Rangel, popular with his constituents and well known on the national stage, would not be easy to push aside.” (Jefferson, however, lost re-election on Saturday.)

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Comments

the Pajama Pundit (Sent Monday, December 08, 2008 9:34 AM)

I'm a month behind on my mortgage payments. Can I get a little help with paying it? No? Thought not.

Cris T., Timber Ridge, NC (Sent Monday, December 08, 2008 9:34 AM)

Chuck:

Really wish you would have landed the MTP desk. Keep up the good work. Rest assured, they will be calling your name soon.

Matt, Cleveland Ohio (Sent Monday, December 08, 2008 9:38 AM)

First Read: The proposal, which could be put to a vote in Congress as soon as tomorrow, would establish a seven-member ‘auto board’ of Cabinet officials.

And what would this seven-memeber panel know about running a business and making cars? Maybe it's just-me, but appointing government workers to reign in the spending and restructing of the auto makers may not be the best plan we've ever seen, seeing those same people on the panel look to be about the worst people ever at managing money.

Fred Claypool, Chicago (Sent Monday, December 08, 2008 9:38 AM)

US Auto Industry should only get the money if it agrees to conditions placed on it, including producing zero emmission cars.

pat huntington ny (Sent Monday, December 08, 2008 9:39 AM)

The Congressional Black Caucus would do better to pressure their own members who in ethical scandles to step aside in leadership positions. It does not help the caucus to turn a blind eye, or become upset when the party leadership is forced to act (the indictment gave Pelosi no choice). This type of loyalty to CBC members, without regard for what the member has done is counter productive, and hurts the CBC in the long run. It allows people to paint the entire caucus with the same brush. Rangels wrong doing is no where near as bad as Jeffersons (or at least it doesn't appear to be), but the controversy is large enough, and it effects his ability to lead. The failure of those in the CBC to recognize this, and the failutre of the CBC to work to force Rangel to resign his Chairmanship is shortsighted, and only serves to hurt the CBC, and the Democratic congress as a whole.

Mike, Chicago (Sent Monday, December 08, 2008 9:53 AM)

The auto industries must be bailed out. Our country cannot allow millions more jobs to be lost. Am so tired of all the postering, finger pointing, demands being made in front of the TV cameras, placing egos ahead of accomplishment.
Why did and are they not doing the same for the financial institutions. There should be outrage over the way they are thumbing their noses at us and doing whatever they want with our taxpayer dollars. Why are not those CEO's and Paulson not being held accountable for their criminal acts??

katiec (Sent Monday, December 08, 2008 9:55 AM)

this auto bailout is a very scary situtation.
this problem that GM is facing is they are going to need to reduce there over head, and what i mean is they may have to eleminate one or two of the divisions.
right now they have chevy, buick, saturn, pontiac cadilac,GMC,
light truck and heavy duty trucks.
if you look at ford, its ford and merucery, look at chrysler, its dodge and chrysler and plymouth. as we see there not asking for the amounts that GM is asking for. so if GM is to stay around i feel they are going to get rid of pontiac and maybe buick.
they are producing too many different cars and that is what killing them, so if they get the money, they better do something drastic and beable to get even again.

jeff D Evanston IL. (Sent Monday, December 08, 2008 9:57 AM)

Chuck:

Really wish you would have landed the MTP desk. Keep up the good work. Rest assured, they will be calling your name soon.
Matt, Cleveland Ohio

Matt,

You aren't alone. I have nothing personal against David Gregory, other than he is painful to watch. What a pity. I hope I'm wrong, but I fear this is the beginning of the end of MTP's dominance on Sunday mornings. Although some people enjoy watching a train wreck, so maybe it'll pick up that auduience! What was the brass at NBC thinking, my guess is they weren't!

Bad choice NBC (Sent Monday, December 08, 2008 9:58 AM)

Congress is putting together a minimal package to keep the auto industry afloat for another few months.
********************************************************

Ugh. Perhaps some accountability will be requested, nay DEMANDED.

*rolls eyes *

What do you want them to be accountable for? $15 billon, $25 billon, $35 billion!?! What ever the number is, it's just money used to starve off bankrupcy for a couple of months. Nothing is going to change with that amount of money. The car makers need more like $500 billion to start making changes that make them viable long term.

Joe Edsel, Detroit MI (Sent Monday, December 08, 2008 10:14 AM)

No bailouts. No Bailouts. No Bailouts.

You people are wrecking this country.
No free entitlements to those who don't know what the hell they're doing, business wise.

No to the Big Three (Sent Monday, December 08, 2008 10:20 AM)

US Auto Industry should only get the money if it agrees to conditions placed on it, including producing zero emmission cars.

pat huntington ny (Sent Monday, December 08, 2008 9:39 AM)

This is precious. You find this answer, and you've developed that biggest invention of all-time, the Perpetual Motion Machine. Einstein would be proud.

I guess you're talking a little smaller though, say electric cars. Those cars by themselves will produce heat (global warming), but more important they need to be plugged in at times, right? And we get most of our electricity from where now in days? Big, smoky, smelly, coal and oil burning electric plants. You know, because we haven't built a new nuke plant in 30 years because of, you guessed it, the environmental laws.

Albert G., Tenn (Sent Monday, December 08, 2008 10:20 AM)

I am so sick of everyone demanding that the Big 3 get done and grovel just so they gave save the jobs of over a million Americans from this disastorous economy. Have they been perfect managers? No. Was the financial industry ran by good management? No. But the problems they are facing right now are not due to their mismanagement, they are due to the credit crisis. They are due to Bush policies which unexpectedly had driven gas prices through the roof. Thus unexpectedly changing Americans demamd for gas guzzling cars. Bush and the GOP has wanted and still wants the Big 3 in Bankruptcy. It is all about their hatred of Unions for them.

Give them a Bridge Loan already until Obama can get the Economy back on track. Emission reductions will come swiftly enough.

Kelly (from Pittsburgh) (Sent Monday, December 08, 2008 10:22 AM)

When will we jettison Barney Frank and Chris Dodd.

joe, tampa,florida (Sent Monday, December 08, 2008 10:45 AM)

Zero emmission Cars? Pat huntington ny can you spare a million to buy one and where would you get the hydrogen fuel. Zepplins were the last public vechicle to use hydrogen. More recently the Space Shuttle has used hydrogen. We are technically along way off from a zero emmission car. Even electric cars are not zero emmission.

TEC-spring-TX (Sent Monday, December 08, 2008 10:57 AM)

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