Congress: An agreement in 'concept'
Posted: Wednesday, December 10, 2008 9:16 AM by Mark Murray
Filed Under:
Congress, Economy
“The White House and congressional Democrats yesterday reached an ‘agreement in concept’ on a plan that would throw a government lifeline to the faltering Detroit auto industry but require the auto giants, their workers and creditors to quickly negotiate a path to profitability or face the prospect of bankruptcy,” the Washington Post front-pages. “The agreement, which is set for a vote in the House today, calls for the government to speed $15 billion in emergency loans to the car companies as soon as next week, and for President Bush to immediately name a car czar to oversee the bailout.”
“The companies would be required by March 31 to cut costs, restructure debt and obtain concessions from labor sufficient to report a ‘positive net present value,’ according to a senior administration official, speaking on condition of anonymity because final language was still under discussion. If the firms failed to make progress toward that goal, the agreement would require the car czar to revoke the loans and develop a new plan that could include the option of seeking Chapter 11 bankruptcy protection, the official said. If the companies could not agree on steps to guarantee their long-term survival, they would be denied additional federal assistance.”
The Hill: "Several Senate Republicans, including Sens. Richard Shelby (Ala.) and John Ensign (Nev.), expressed disappointment earlier on Tuesday over the draft language of the bill. Senate Republicans will hold a policy lunch on Wednesday, where some senators may make a pitch to mount a filibuster. It's unclear if the package has the 60 votes necessary to cut off debate, or whether all Democrats support the legislation."
The stickiest of the sticking points in the bailout negotiations appear to have been mostly resolved, but Roll Call reports that "Senate Democrats said they were reluctant to announce any deals until Senate Republicans had a chance to review the measure, and until the Bush White House had a chance to try to sell it."
"The Frank-versus-Shelby argument is a microcosm of the complex politics and competing interests at stake as Congress prepares to vote on the auto loans. It emphasizes what has become a geographic -- not just partisan -- divide: lawmakers from states with foreign-owned auto plants tend to oppose the measure, while those from the Upper Midwest and strong union states tend to back it."
More bad news for Rangel. "The House ethics committee is expanding an investigation of Rep. Charles Rangel, chairman of the tax-writing Ways and Means Committee. The ethics panel issued a statement Tuesday saying it had voted to expand an already far-ranging probe into the New York Democrat to examine whether he protected an oil drilling company from a big tax bill when the head of that company pledged a $1 million donation to a college center named after the congressman," the AP writes. "The move means the Rangel inquiry will likely stretch well past early January, when House Speaker Nancy Pelosi, D-Calif., had previously said she expected the matter to be resolved."
