Hot on Facebook

Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Big 3 Bailout Plan Goes to White House

Measure has provision for watchdog, but other questions remain

By Nick McMaster, Newser Staff

Posted Dec 8, 2008 3:38 PM CST

(Newser) – A draft of the multibillion-dollar bailout agreement for the Big Three automakers went from Capitol Hill to the White House this afternoon and found a chilly reception, the AP reports. The draft legislation calls for a government watchdog appointed by the Bush administration to oversee the companies' operation, but its short-term provision for bridge loans to be extended as soon as this week appears to violate an agreement not to bail out companies deemed not viable.

The plan calls for a concrete restructuring plan to be submitted by March 31 to the watchdog, who would have the option of recalling the loans if he or she deems the companies' progress unsatisfactory, the Detroit Free Press reports. Meanwhile, UAW leadership floated the idea of securing an equity stake in GM in exchange for labor concessions, the Wall Street Journal reports.

[Images (3)]

[Quotes (1)]

In this Nov. 18, 2008 file photo, General Motors CEO Rick Wagoner, from right, Chrysler CEO Robert Nardelli, and Ford CEO Alan Mulally, testify at a Senate Banking, Housing and Urban Affairs hearing on... (AP Photo/Manuel Balce Ceneta, File)

House Financial Services Committee Chairman Barney Frank huddles with Paul Kanjorski on Thursday, Dec. 5, 2008, as executives of the big three automakers testified on the auto industry bailout. (AP Photo/Gerald Herbert)

Unsold 2008 Liberty sports-utility vehicles sit at a Chrysler-Jeep dealership in the southeast Denver suburb of Centennial, Colo., on Sunday, Nov. 2, 2008. . (AP Photo/David Zalubowski)

« Prev« Prev | Next »Next » Slideshow

While we take no satisfaction in loaning taxpayer money to these companies, we know it must be done. - Senate Majority Leader Harry Reid

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Saving Detroit: It's Now or Never

Auto industry in danger of going under while lawmakers haggle over lifeline

(NEWSER) - If Congress is going to save America's auto industry it needs to quit the grandstanding and finger-pointing and take action right now, Tom Walsh writes in the Detroit Free Press. The Big Three have submitted their survival plans as requested, Walsh writes, and the figures show they aren't bluffing—they really will collapse without help. More»

Why Asian Automakers Don't Want Detroit to Fail

Big Three bankruptcy would disrupt supply chain, further sour US economy

(NEWSER) - As Detroit’s Big Three await word on the fate of their much-needed bailout, an unlikely group of supporters has assembled in their corner: foreign automakers. A collapse of General Motors, Ford, or Chrysler would devastate overseas manufacturers as well, CNNMoney reports, spreading bankruptcy to suppliers around the globe and forcing dealer networks worldwide to replace failed brands. More»

As GOP Stiffens, Auto Bailout Prospects Hit the Skids

McConnell, GOP move further away from supporting Detroit aid

(NEWSER) - As Republican resistance to the $14 billion auto-industry bailout mounted, proponents flogged today's dismal unemployment figures to bolster their case, Politico reports. Mitch McConnell abandoned the White House, which continued to push the bill; the Senate minority leader unexpectedly said the measure "promises taxpayer money today for reforms that may or may not come tomorrow," The Hill reports. It's unclear when the Senate will vote on the legislation, which cleared the House yesterday. More»

Auto Bailout Must Be Paid Back: Bush

Bush supports some aid, but it must be done his way, he warns Dems

(AP) - Using the word "recession" for the first time to describe the US economy, President Bush today demanded that Congress adopt his approach to an auto bailout and require car companies to pay back any federal aid. But he displayed skepticism about the wisdom of new aid, saying he is concerned that some of Detroit's Big Three automakers may not survive. More»

Big 3 Execs Finish With Senate

CEOs to make their case to the House tomorrow

(NEWSER) - The CEOs of the Big Three wrapped up a six-hour session with the Senate Banking Committee during which they asked for a minimum of $34 billion in aid, the Washington Post reports. Chairman Chris Dodd vowed to draft a bill “in the next 24-48 hours" that stood a chance of passing both houses and ducking a Bush veto. The execs face the House Financial Services Committee tomorrow. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Big 3 Bailout Plan Goes to White House