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Leaders in Congress Agree on Auto Bailout Plan!

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The White House and congressional Democrats on Tuesday night reached an agreement in principle on a $15 billion proposal for bailing out U.S. automakers, officials said.

A Bush administration official and a Democratic leadership aide said the accord covered key points but a few final details still needed to resolved and put in writing.

The "agreement in concept" as described to CNBC by a senior administration official includes:

* Bridge loans that come from money already appropriated to the Energy Department -- these are funds originally intended to help the companies retool to make fuel efficient vehicles.
* The President's designee -- the so-called 'Car Czar' -- will bring together all a company's stakeholders -- creditors, labor, shareholders, management, dealers, etc -- to negotiate a restructuring by March 31. A 30-day extension may be granted if the czar believes the stakeholders are negotiating in good faith and if the czar believes a deal can be reached in that extension.
* If there's no deal by March 31, the czar is REQUIRED to call the loan, which would send the company into insolvency.
* If there's no deal by March 31, the czar would be required to propose his own course of action, which could include Chapter 11 bankruptcy reorganization.
* The legislation will also include taxpayer protections, including, but not limited to, stock warrants and limits on executive compensation.
Click to expand...

Tentative Deal Reached in US Auto Bailout Talks

Looks like I & others might make some money tomorrow! 🙂
 
Originally posted by: Zim Hosein
The White House and congressional Democrats on Tuesday night reached an agreement in principle on a $15 billion proposal for bailing out U.S. automakers, officials said.

A Bush administration official and a Democratic leadership aide said the accord covered key points but a few final details still needed to resolved and put in writing.

The "agreement in concept" as described to CNBC by a senior administration official includes:

* Bridge loans that come from money already appropriated to the Energy Department -- these are funds originally intended to help the companies retool to make fuel efficient vehicles.
* The President's designee -- the so-called 'Car Czar' -- will bring together all a company's stakeholders -- creditors, labor, shareholders, management, dealers, etc -- to negotiate a restructuring by March 31. A 30-day extension may be granted if the czar believes the stakeholders are negotiating in good faith and if the czar believes a deal can be reached in that extension.
* If there's no deal by March 31, the czar is REQUIRED to call the loan, which would send the company into insolvency.
* If there's no deal by March 31, the czar would be required to propose his own course of action, which could include Chapter 11 bankruptcy reorganization.
* The legislation will also include taxpayer protections, including, but not limited to, stock warrants and limits on executive compensation.
Click to expand...

Tentative Deal Reached in US Auto Bailout Talks

Looks like I & others might make some money tomorrow! 🙂
Click to expand...

is it me, or does that actually sound like something slightly reasonable from congress? :Q
 
Originally posted by: Fenixgoon
Originally posted by: Zim Hosein
The White House and congressional Democrats on Tuesday night reached an agreement in principle on a $15 billion proposal for bailing out U.S. automakers, officials said.

A Bush administration official and a Democratic leadership aide said the accord covered key points but a few final details still needed to resolved and put in writing.

The "agreement in concept" as described to CNBC by a senior administration official includes:

* Bridge loans that come from money already appropriated to the Energy Department -- these are funds originally intended to help the companies retool to make fuel efficient vehicles.
* The President's designee -- the so-called 'Car Czar' -- will bring together all a company's stakeholders -- creditors, labor, shareholders, management, dealers, etc -- to negotiate a restructuring by March 31. A 30-day extension may be granted if the czar believes the stakeholders are negotiating in good faith and if the czar believes a deal can be reached in that extension.
* If there's no deal by March 31, the czar is REQUIRED to call the loan, which would send the company into insolvency.
* If there's no deal by March 31, the czar would be required to propose his own course of action, which could include Chapter 11 bankruptcy reorganization.
* The legislation will also include taxpayer protections, including, but not limited to, stock warrants and limits on executive compensation.
Click to expand...

Tentative Deal Reached in US Auto Bailout Talks

Looks like I & others might make some money tomorrow! 🙂
Click to expand...

is it me, or does that actually sound like something slightly reasonable from congress? :Q
Click to expand...

mmm.. I'm skeptical that this car-czar will actually matter. The car-czar is in the position to pull the loans if he thinks the companies haven't shown any improvement. When it comes to evaluate performance he'll have two choices:

1) call the loans, thus going down in history as the guy who destroyed some of the biggest and oldest companies in the nation and indirectly putting 1-3 million Americans out of work.

2) Let them continue and pray that they really do recover. And if they don't? Well, that probably won't happen for 2 years and by then he can just say "well, we gave them every opportunity, they just screwed it up. It certainly wasn't my fault."
 
The U.S. House of Representatives approved a bill on Wednesday evening to lend up to $14 billion to the three struggling U.S. automakers, General Motors, Ford Motor and Chrysler LLC.

Introduced by Democrats, the bill is nearly identical to one pending in the Senate, where Republican opposition was making its chances for passage look uncertain.

The bailout proposal would extend taxpayer-funded loans or lines of credit to the Detroit Three and create a federal government post of "car czar" to oversee the industry.

It's been an uphill struggle to pass the bill, which has yet to pass the Senate, as Republicans are hard pressed to approve the deal between Democrats and the Bush White House to speed $14 billion to ailing car makers.

Democrats detailed the compromise measure and laid the groundwork for quick votes on it, holding out hope the bailout could be enacted by week's end. But a growing number of GOP senators declared they would not go along.

The White House, though not formally endorsing an agreement with congressional Democrats, dispatched administration officials to Capitol Hill to make a case for the rescue package.

During a contentious, closed-door luncheon with Senate Republicans, they got an earful of criticism from the rank-and-file, some of whom have already announced plans to block the measure.

"They got a good dose," said opponent Tom Coburn, R-Okla., as he emerged from the session. Even auto state Republicans who have pushed hard for a bailout said the measure needed work.

Sen. Kit Bond, R-Mo., said he wanted to see changes. And Sen. George V. Voinovich, R-Ohio, said the measure didn't have the necessary Republican votes to pass Congress.
Click to expand...

US House Approves $14 Billion Auto Bailout

Now we just have to hope that the Senate gets on board and passes this proposed bill, my GM stock is currently in the red! 🙁
 
Originally posted by: Zim Hosein
The U.S. House of Representatives approved a bill on Wednesday evening to lend up to $14 billion to the three struggling U.S. automakers, General Motors, Ford Motor and Chrysler LLC.

Introduced by Democrats, the bill is nearly identical to one pending in the Senate, where Republican opposition was making its chances for passage look uncertain.

The bailout proposal would extend taxpayer-funded loans or lines of credit to the Detroit Three and create a federal government post of "car czar" to oversee the industry.

It's been an uphill struggle to pass the bill, which has yet to pass the Senate, as Republicans are hard pressed to approve the deal between Democrats and the Bush White House to speed $14 billion to ailing car makers.

Democrats detailed the compromise measure and laid the groundwork for quick votes on it, holding out hope the bailout could be enacted by week's end. But a growing number of GOP senators declared they would not go along.

The White House, though not formally endorsing an agreement with congressional Democrats, dispatched administration officials to Capitol Hill to make a case for the rescue package.

During a contentious, closed-door luncheon with Senate Republicans, they got an earful of criticism from the rank-and-file, some of whom have already announced plans to block the measure.

"They got a good dose," said opponent Tom Coburn, R-Okla., as he emerged from the session. Even auto state Republicans who have pushed hard for a bailout said the measure needed work.

Sen. Kit Bond, R-Mo., said he wanted to see changes. And Sen. George V. Voinovich, R-Ohio, said the measure didn't have the necessary Republican votes to pass Congress.
Click to expand...

US House Approves $14 Billion Auto Bailout

Now we just have to hope that the Senate gets on board and passes this proposed bill, my GM stock is currently in the red! 🙁
Click to expand...

SELL!!!
 
It sounds like it is going to be tough sell in the Senate.

As much as I have a vested interest in seeing this passed, the Repubs that have opposed this bailout have some valid points. I'd rather see my retirement benefits reduced rather than totally lost later on.
 
Originally posted by: Squisher
It sounds like it is going to be tough sell in the Senate.

As much as I have a vested interest in seeing this passed, the Repubs that have opposed this bailout have some valid points. I'd rather see my retirement benefits reduced rather than totally lost later on.
Click to expand...

The U.S. Senate has failed to reach an agreement on a $14 billion government bailout to rescue the nation's Big Three automakers.

Senate Majority Leader Harry Reid said he was "terribly disappointed" as there was "too much difference" between negotiators to come to a compromise.

Sen. Chris Dodd of Connecticut, chairman of the Senate Banking Committee chairman said the main issue of disagreement in negotiations was over the date for pay parity with foreign auto manufacturers.
Click to expand...

Senate Fails to Reach Agreement on Auto Bailout

Looks like you are right Squisher! 🙁
 
Wow, even in the face of collapse UAW wouldn't agree to pay cuts.
I don't believe anyone at the UAW executive level cared about union workforce when they made that decision. Have fun in the soup line.
 
Oh man, some of you guys really like to gamble. Should have taken your profit while you had the chance. Tomorrow is going to be ugly.
 
Originally posted by: paulney
Wow, even in the face of collapse UAW wouldn't agree to pay cuts.
I don't believe anyone at the UAW executive level cared about union workforce when they made that decision. Have fun in the soup line.
Click to expand...

The UAW needs to fail. I am from MI, so I would hate to see the Big 3 fail, but something has to change.

If anyone has a couple hours, I have a theory on how MI's change in the distribution of school funding was a major contributor to the Big 3's demise.
 
The big 3 "may" get some money afterall.

"However, the Big Three could still wind up getting government funding. Bush officials warned wavering GOP senators earlier Thursday that if they didn't support the legislation, the White House will likely be forced to tap funds from the Wall Street bailout to lend them money, two Republican congressional officials told CNN."

http://money.cnn.com/2008/12/1...ilout_senate/index.htm
 
I think this situation is too complicated to just casually give the Big 3 money and likewise the impact of those three large companies exploding is not good. I call it exploding because they would take out many layers of distributors, contractors, and so forth. Unfortunately many parts of our economy are tied to the Three Asshats.

However I am all for hoping the UAW fails and ends up as nothing more than a hollow relic of it's former self.

 
I don't see how anybody could expect to essentially negotiate a labor contract in a few hours. There is probably nothing more complicated. How did congress come up with their dollar figures. Which transplant did they choose for their archetype? I have to imagine there is wide range of pay from one to another. Did they negotiate the impact of differences in classifications? To expect the UAW to do whatever this entailed even if it was determined in the long run to be fair was a little much given the fact of the complexities involved. I have to believe the Southern Republicans were going to vote against this from the beginning, they just found the weakest link and pushed until the house of cards collapsed.
 
Originally posted by: rudeguy
Originally posted by: paulney
Wow, even in the face of collapse UAW wouldn't agree to pay cuts.
I don't believe anyone at the UAW executive level cared about union workforce when they made that decision. Have fun in the soup line.
Click to expand...

The UAW needs to fail. I am from MI, so I would hate to see the Big 3 fail, but something has to change.

If anyone has a couple hours, I have a theory on how MI's change in the distribution of school funding was a major contributor to the Big 3's demise.
Click to expand...

care to post? i'd be interested in reading.

personally, i don't think it's just education that's a problem (and i mean nationally). i think there is something fundamentally wrong with our cultural attitude towards education. also, parents need to beat their kids.
 
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