House passes auto bailout bill

Published: Dec. 10, 2008 at 11:36 PM
Order reprints
Slideshow
1 of 8
Speaker of the House Nancy Pelosi, D-CA, speaks to the media following a Democratic issues forum on Capitol Hill in Washington on December 9, 2008. Pelosi said Congress is continuing to work on a short term auto maker bailout, estimated at $15 billion. With Pelosi are House Democratic Caucus Chairman John Larson, D-CT,  House Majority Whip James Clyburn, D-SC, House Democratic Caucus Vice Chair Xavier Becerra, D-CA, Rep. Barney Frank, D-MA, and House Majority Leader Steny Hoyer, D-MD (L to R).(UPI Photo/Roger L. Wollenberg)
Speaker of the House Nancy Pelosi, D-CA, speaks to the media following a Democratic issues forum on Capitol Hill in Washington on December 9, 2008. Pelosi said Congress is continuing to work on a short term auto maker bailout, estimated at $15 billion. With Pelosi are House Democratic Caucus Chairman John Larson, D-CT, House Majority Whip James Clyburn, D-SC, House Democratic Caucus Vice Chair Xavier Becerra, D-CA, Rep. Barney Frank, D-MA, and House Majority Leader Steny Hoyer, D-MD (L to R).(UPI Photo/Roger L. Wollenberg) | Enlarge Enlarge
WASHINGTON, Dec. 10 (UPI) -- The U.S. House OK'd a plan Wednesday night to rebuild the nation's domestic automobile industry, but Senate Republicans might run it in a ditch.

"There were a lot of misgivings in the (Republican) caucus," the San Francisco Chronicle quoted Sen. Richard Shelby, R-Ala., as saying following a private meeting with White House Chief of Staff Josh Bolten and Vice President Dick Cheney.

Another opponent of the measure, Sen. Christopher "Kit" Bond, R-Mo., was more blunt.

"It's not going to pass right now," Bond said.

The House effort to funnel $14 billion to General Motors and Chrysler, both desperate for cash, was passed on a 237-170, The Washington Post reported.

In addition to giving GM and Chrysler the cash they say they need to survive through March 31, the measure also sets terms for Ford Motor Co., which has said it needs a $9 billion credit line, the Detroit Free Press reported.

GM and Chrysler would have to grant the government an equity stake stake in either company, as well as restrict executive pay and end corporate jet travel, the Free Press said.

The bailout legislation would require Bush to name an "auto czar" who would monitor the automakers' progress in their return to private, self-sustaining status, CNN reported

If the companies do not meet financial progress standards, the auto czar would call in the loans. The bill also bars the companies from further federal assistance should they fail to make progress.

But some GOP lawmakers say rather than bailing out the Big Three, they preferred to let them reorganize themselves in bankruptcy proceedings.


© 2008 United Press International, Inc. All Rights Reserved.



Your Daily Horoscope
The almanac
Panetta: Congress not told of CIA program
Biden goes on the road to defend stimulus
The two-edged sword of online games
Rio Tinto employees face spy charges
Ghana prepared to greet Obama
fark
Tennessee Aquarium presents a bowl full of ugly-ass baby penguin. A little milk and we'll have a...
Judge allows Twitter-using DA to 'tweet' upcoming muder trial over defense objections. Prosecution's...
Photoshop theme: The end of the universe
NY Times thinks their website users would pay five bucks per month. Listen, for the last time, no...
Fewer calories allow monkeys to live longer. Good thing you're not a monkey
"Resident found out it's not OK to shoot raccoons and gerbils...He told police that he and his neighbors...