Auto Industry Financing and Restructuring Act of 2008 - OpenCongress Wiki
Auto Industry Financing and Restructuring Act of 2008
From OpenCongress Wiki
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| − | {{Economic Policy (U.S.)|congress=110|bill=h7321}}{{clear}} | + | {{Economic Policy (U.S.)|congress=110|bill=h7321}}{{clear}} {{Summary|In December, 2008, pressure mounted on congressional leaders and President George W. Bush to pursue legislation that would provide emergency financial aid to U.S. domestic automakers. Representatives of the three leading U.S. carmakers -- Chrysler, Ford and General Motors -- twice testified before Congress, arguing that the U.S. recession left them close to failure. The automakers also told lawmakers that the failure of one firm would cascade through the industry -- parts suppliers, local shops and dealerships would all face ruin, and the other firms might be taken under as well. Following the second round of testimony, congressional leaders agreed to a $15 billion series of emergency loans, with stringent oversight and a requirement that the manufacturers restructure business practices to return to profitability and repay the loans. The '''Auto Industry Financing and Restructuring Act of 2008''' (H.R. 7321) was introduced on December 10, 2008. }} |
| − | {{Summary|In December, 2008, pressure mounted on congressional leaders and President George W. Bush to pursue legislation that would provide emergency financial aid to U.S. domestic automakers. Representatives of the three leading U.S. carmakers -- Chrysler, Ford and General Motors -- twice testified before Congress, arguing that the U.S. recession left them close to failure. The automakers also told lawmakers that the failure of one firm would cascade through the industry -- parts suppliers, local shops and dealerships would all face ruin, and the other firms might be taken under as well. | + | |
| − | + | == Current Status == | |
| − | + | <usbillinfo congress="110" bill="H.7321">></usbillinfo> | |
| − | + | ||
| − | + | ||
| − | < | + | |
== Background == | == Background == | ||
| Line 17: | Line 13: | ||
On December 10, 2008, the [[House Financial Services Committee]] released a copy of the proposed financial bailout package<ref>[http://crossovercars.org/wp-content/uploads/2008/12/automakerbailoutbillpacakage.pdf "Auto Industry Financing and Restructuring Act,"] House Financial Services Committee, Dec. 10, 2008</ref> for GM, Ford, and Chrysler. The bill proposes the appointment of 'Car Czar' to oversee automakers' restructuring efforts,<ref>C. Tierney, [http://www.detnews.com/apps/pbcs.dll/article?AID=/20081209/AUTO01/812090378/1148/&source=nletter-business "Car czar to help steer restructuring,"] ''Detroit News,'' Dec. 9, 2008]</ref> and restricts executive bonuses. It prohibits executive golden parachute packages and requires automakers to sell or divest themselves of any privately owned or leased aircraft. | On December 10, 2008, the [[House Financial Services Committee]] released a copy of the proposed financial bailout package<ref>[http://crossovercars.org/wp-content/uploads/2008/12/automakerbailoutbillpacakage.pdf "Auto Industry Financing and Restructuring Act,"] House Financial Services Committee, Dec. 10, 2008</ref> for GM, Ford, and Chrysler. The bill proposes the appointment of 'Car Czar' to oversee automakers' restructuring efforts,<ref>C. Tierney, [http://www.detnews.com/apps/pbcs.dll/article?AID=/20081209/AUTO01/812090378/1148/&source=nletter-business "Car czar to help steer restructuring,"] ''Detroit News,'' Dec. 9, 2008]</ref> and restricts executive bonuses. It prohibits executive golden parachute packages and requires automakers to sell or divest themselves of any privately owned or leased aircraft. | ||
| − | Congressional Democrats and the White House reached agreement on about $15 billion in emergency loans for the embattled U.S. auto industry. Sources in both parties say the breakthrough on the long-stalled bailout came after House Speaker Nancy Pelosi bowed to President George Bush's demand that the aid come from a fund set aside for the production of plug-in hybrids. The CEOs of General Motors, Ford and Chrysler have sought $34 billion in loans. The lesser amount reportedly is meant to tide them over until Barack Obama assumes the presidency.<ref>[http://www.wxyz.com/news/story/Congress-White-House-Talking-15B-Bailout/MPzcArkKLUSTyysjbfYKlg.cspx "Congress, White House Talking $15B Bailout,"] ''The Associated Press'', </ref> | + | Congressional Democrats and the White House reached agreement on about $15 billion in emergency loans for the embattled U.S. auto industry. Sources in both parties say the breakthrough on the long-stalled bailout came after House Speaker Nancy Pelosi bowed to President George Bush's demand that the aid come from a fund set aside for the production of plug-in hybrids. The CEOs of General Motors, Ford and Chrysler have sought $34 billion in loans. The lesser amount reportedly is meant to tide them over until Barack Obama assumes the presidency.<ref>[http://www.wxyz.com/news/story/Congress-White-House-Talking-15B-Bailout/MPzcArkKLUSTyysjbfYKlg.cspx "Congress, White House Talking $15B Bailout,"] ''The Associated Press'', </ref> |
| + | |||
| + | [http://www.paydayin1hour.co.uk Paydayuk application] | ||
== Bill Summary == | == Bill Summary == | ||
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[http://www.kwikcash.co.uk quick cash] | [http://www.kwikcash.co.uk quick cash] | ||
| − | ==Bill passage== | + | == Bill passage == |
| + | |||
=== House vote === | === House vote === | ||
| − | On December 10, 2008, the House approved the auto-bailout bill by a 237-to-170-vote margin. Members of the House with domestic manufacturing plants within their districts voted for the legislation. Members whose districts employ workers at foreign carmakers' plants voted against the bailout.<ref name="WaPo_12-11">Lori Montgomery and Paul Kane, [http://www.washingtonpost.com/wp-dyn/content/article/2008/12/10/AR2008121001679.html "Auto Bailout Clears House but Faces Hurdles in Senate,"] ''The Washington Post'', December 11, 2008</ref> | + | On December 10, 2008, the House approved the auto-bailout bill by a 237-to-170-vote margin. Members of the House with domestic manufacturing plants within their districts voted for the legislation. Members whose districts employ workers at foreign carmakers' plants voted against the bailout.<ref name="WaPo_12-11">Lori Montgomery and Paul Kane, [http://www.washingtonpost.com/wp-dyn/content/article/2008/12/10/AR2008121001679.html "Auto Bailout Clears House but Faces Hurdles in Senate,"] ''The Washington Post'', December 11, 2008</ref> |
| − | < | + | <usvoteinfo year="2008" chamber="house" rollcall="690">></usvoteinfo><br/>{{Record vote display|U.S. House of Representatives record vote 690, 110th Congress, Session 2}} |
| − | {{Record vote display|U.S. House of Representatives record vote 690, 110th Congress, Session 2}} | + | |
| − | Differences existed between the legislation approved by the House and what the Senate considered. Notably, the House required that the manufacturers drop lawsuits against the State of [[California]], which has enacted mandatory fuel-efficiency limits more stringent than those specified by the federal government. The Senate was expected to drop that provision.<ref name="WaPo_12-11" /> | + | Differences existed between the legislation approved by the House and what the Senate considered. Notably, the House required that the manufacturers drop lawsuits against the State of [[California]], which has enacted mandatory fuel-efficiency limits more stringent than those specified by the federal government. The Senate was expected to drop that provision.<ref name="WaPo_12-11">_</ref> |
| − | ===Senate vote=== | + | === Senate vote === |
| − | With the House bill unlikely to pass the Senate, supporters of an auto industry bill in the Senate attempted to use the [[Alternative Minimum Tax Relief Act of 2008|Alternative Minimum Tax Relief Act]] (H.R. 7005), which had already passed the House in September 2008, as a so-called "shell" bill to which would be added a different version of the auto industry bill. However, negotiators in the Senate were unable to reach a compromise on a new proposed version of the auto bill and the plan failed when the Senate rejected a cloture motion that would have allowed them to proceed to consideration of the auto bill by a vote of of 52-35 on December 11, 2008.<ref name="CQ_12-11" /> | + | With the House bill unlikely to pass the Senate, supporters of an auto industry bill in the Senate attempted to use the [[Alternative Minimum Tax Relief Act of 2008|Alternative Minimum Tax Relief Act]] (H.R. 7005), which had already passed the House in September 2008, as a so-called "shell" bill to which would be added a different version of the auto industry bill. However, negotiators in the Senate were unable to reach a compromise on a new proposed version of the auto bill and the plan failed when the Senate rejected a cloture motion that would have allowed them to proceed to consideration of the auto bill by a vote of of 52-35 on December 11, 2008.<ref name="CQ_12-11">_</ref> |
| − | < | + | <usvoteinfo year="2008" chamber="senate" rollcall="215">></usvoteinfo> |
| − | Members voiced several reasons for voting against cloture.<ref name="CQ_12-11">Joseph J. Schatz, Phil Mattingly and Kathleen Hunter, [http://www.cqpolitics.com/wmspage.cfm?parm1=175&docID=news-000002996565 "Auto Bailout Scuttled in Senate,"] ''CQ Politics'', December 11, 2008</ref> Minority Leader [[Mitch McConnell]] (R-Ky.) said oversight measures included in the legislation were not stringent enough. Sen. [[Bob Corker]] (R-Tenn.) tried to introduce a substitute amendment requiring the companies receiving loans reduce their debt obligations by two-thirds. GOP senators also called on the companies to reduce wages and benefits for employees at the firms to the level of those employed by foreign-based firms.<ref name="CQ_12-11b">Joseph J. Schatz and Phil Mattingly, [http://www.cqpolitics.com/wmspage.cfm?docID=news-000002996870 "Auto Plan at an Impasse in Senate,"] ''CQ Politics'', December 11, 2008</ref> | + | Members voiced several reasons for voting against cloture.<ref name="CQ_12-11">Joseph J. Schatz, Phil Mattingly and Kathleen Hunter, [http://www.cqpolitics.com/wmspage.cfm?parm1=175&docID=news-000002996565 "Auto Bailout Scuttled in Senate,"] ''CQ Politics'', December 11, 2008</ref> Minority Leader [[Mitch McConnell]] (R-Ky.) said oversight measures included in the legislation were not stringent enough. Sen. [[Bob Corker]] (R-Tenn.) tried to introduce a substitute amendment requiring the companies receiving loans reduce their debt obligations by two-thirds. GOP senators also called on the companies to reduce wages and benefits for employees at the firms to the level of those employed by foreign-based firms.<ref name="CQ_12-11b">Joseph J. Schatz and Phil Mattingly, [http://www.cqpolitics.com/wmspage.cfm?docID=news-000002996870 "Auto Plan at an Impasse in Senate,"] ''CQ Politics'', December 11, 2008</ref> |
| − | Employees of the Big Three firms, represented by the [[United Auto Workers]], agreed to make some concessions regarding pay and pensions, but wanted to meet a 2011 deadline. GOP Senators called on the reductions to be made by March 2009.<ref name="CQ_12-11b" /> | + | Employees of the Big Three firms, represented by the [[United Auto Workers]], agreed to make some concessions regarding pay and pensions, but wanted to meet a 2011 deadline. GOP Senators called on the reductions to be made by March 2009.<ref name="CQ_12-11b">_</ref> |
Americans for Democratic Action, which supported cloture, selected the vote for their [[Americans for Democratic Action 2008 Senate Scorecard|2008 Senate scorecard]], where they gave it the following description: | Americans for Democratic Action, which supported cloture, selected the vote for their [[Americans for Democratic Action 2008 Senate Scorecard|2008 Senate scorecard]], where they gave it the following description: | ||
<blockquote>Motion to invoke cloture, limit debate, and vote on a bill related to the alternative minimum tax, which would serve as the vehicle for an emergency loan package for domestic automakers. Failing to receive the required 60 votes, the Motion was rejected 52-35<ref>[http://www.adaction.org/media/votingrecords/2008.pdf ''ADA Today''], Spring 2009.</ref></blockquote> | <blockquote>Motion to invoke cloture, limit debate, and vote on a bill related to the alternative minimum tax, which would serve as the vehicle for an emergency loan package for domestic automakers. Failing to receive the required 60 votes, the Motion was rejected 52-35<ref>[http://www.adaction.org/media/votingrecords/2008.pdf ''ADA Today''], Spring 2009.</ref></blockquote> | ||
| − | |||
The Drum Major Institute also supported cloture and selected the vote for its [[Drum Major Institute 2008 Senate Scorecard|2008 Senate scorecard]], where it gave the following description: | The Drum Major Institute also supported cloture and selected the vote for its [[Drum Major Institute 2008 Senate Scorecard|2008 Senate scorecard]], where it gave the following description: | ||
<blockquote>The automobile industry is a critical component of the American economy. Motor vehicle and parts industries employed over 700,000 people directly as of September and each job in the auto industry supports about 1.7 additional jobs in industries as diverse as textiles and retail. The Economic Policy Institute predicts that a worst-case-scenario shutdown of the entire U.S. auto industry would eliminate 3.3 million jobs—many of them solid middle-class positions. Most experts agree that bankruptcy in the current liquidity crisis would be devastating to the auto manufacturers: already weak sales would be exacerbated by consumers frightened to buy from a bankrupt manufacturer, and lending institutions normally accessible to bankrupt companies are now unavailable. As an alternative, this legislation imposes reasonable restructuring requirements, while ensuring that middle-class jobs are preserved in a period of deep economic crisis. The bill will prevent the short-term failure of the automobile industry in the United States and makes a leaner, more energy-efficient Detroit possible. An auto czar cannot make the Big Three automakers profitable. But the czar’s influence—backed up by the capacity to speed loan repayment and impose bankruptcy—and the thorough restructuring guidelines laid out by Congress can ensure that the American automakers do not once again fail to confront environmental concerns and recalcitrant management.<ref>From Drum Major Institute, [http://www.drummajorinstitute.org/pdfs/2008_scorecard_layout_output.pdf "TheMiddleClass.org 2008 Congressional Scorecard"]</ref></blockquote> | <blockquote>The automobile industry is a critical component of the American economy. Motor vehicle and parts industries employed over 700,000 people directly as of September and each job in the auto industry supports about 1.7 additional jobs in industries as diverse as textiles and retail. The Economic Policy Institute predicts that a worst-case-scenario shutdown of the entire U.S. auto industry would eliminate 3.3 million jobs—many of them solid middle-class positions. Most experts agree that bankruptcy in the current liquidity crisis would be devastating to the auto manufacturers: already weak sales would be exacerbated by consumers frightened to buy from a bankrupt manufacturer, and lending institutions normally accessible to bankrupt companies are now unavailable. As an alternative, this legislation imposes reasonable restructuring requirements, while ensuring that middle-class jobs are preserved in a period of deep economic crisis. The bill will prevent the short-term failure of the automobile industry in the United States and makes a leaner, more energy-efficient Detroit possible. An auto czar cannot make the Big Three automakers profitable. But the czar’s influence—backed up by the capacity to speed loan repayment and impose bankruptcy—and the thorough restructuring guidelines laid out by Congress can ensure that the American automakers do not once again fail to confront environmental concerns and recalcitrant management.<ref>From Drum Major Institute, [http://www.drummajorinstitute.org/pdfs/2008_scorecard_layout_output.pdf "TheMiddleClass.org 2008 Congressional Scorecard"]</ref></blockquote> | ||
| + | == Articles and resources == | ||
| − | + | ''[[Wikipedia]] also has an article on the [[w:Auto bailout|Auto Industry Financing and Restructuring Act of 2008]]. This article may use content from the Wikipedia article under the terms of the [[w:GFDL|GFDL]].'' | |
| − | ''[[Wikipedia]] also has an article on the [[w:Auto bailout | + | |
| + | === See also === | ||
| − | |||
*[[Recovery Rebates and Economic Stimulus for the American People Act of 2008]] | *[[Recovery Rebates and Economic Stimulus for the American People Act of 2008]] | ||
*[[Bankruptcy Abuse Prevention and Consumer Protection Act of 2005]] | *[[Bankruptcy Abuse Prevention and Consumer Protection Act of 2005]] | ||
| Line 64: | Line 62: | ||
*[[Mortgage Forgiveness Debt Relief Act of 2007]] | *[[Mortgage Forgiveness Debt Relief Act of 2007]] | ||
| − | ===References=== | + | === References === |
| − | <references/> | + | |
| + | <references /> | ||
| − | ===External resources=== | + | === External resources === |
| + | === External articles === | ||
| − | + | *Wikipedia article on the [[w:Subprime mortgage crisis|subprime mortgage crisis]] | |
| − | * Wikipedia article on the [[w:Subprime mortgage crisis|subprime mortgage crisis]] | + | |
| + | <br/>{{congresspedia}} | ||
| − | + | [[Category:U.S. legislation|U.S._legislation]] | |
| − | [[ | + | |
Revision as of 11:37, November 15, 2012
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| Summary (how summaries work) | |
| In December, 2008, pressure mounted on congressional leaders and President George W. Bush to pursue legislation that would provide emergency financial aid to U.S. domestic automakers. Representatives of the three leading U.S. carmakers -- Chrysler, Ford and General Motors -- twice testified before Congress, arguing that the U.S. recession left them close to failure. The automakers also told lawmakers that the failure of one firm would cascade through the industry -- parts suppliers, local shops and dealerships would all face ruin, and the other firms might be taken under as well. Following the second round of testimony, congressional leaders agreed to a $15 billion series of emergency loans, with stringent oversight and a requirement that the manufacturers restructure business practices to return to profitability and repay the loans. The Auto Industry Financing and Restructuring Act of 2008 (H.R. 7321) was introduced on December 10, 2008. | |
Contents |
Current Status
| H.R.7321 (110th Congress) - Auto Industry Financing and Restructuring Act | Status: House Passed |
To authorize financial assistance to eligible automobile manufacturers, and for other purposes.
Sponsor: Barney FrankCommittees: House Financial Services, House Energy and Commerce, House Ways and Means, House Judiciary, House Transportation and Infrastructure, House Budget
Background
On December 9, 2008, negotiators revealed the terms of an emerging deal between the White House and Congress under which a short-term, $15 billion bailout for the Big Three would be overseen by a federal "car czar" or trustee.[1] By December 10, it appeared the deal had been accepted in principle with only a few details to be ironed out. It was still not clear, however, whether the Senate would agree to this arrangement.[2]
On December 10, 2008, the House Financial Services Committee released a copy of the proposed financial bailout package[3] for GM, Ford, and Chrysler. The bill proposes the appointment of 'Car Czar' to oversee automakers' restructuring efforts,[4] and restricts executive bonuses. It prohibits executive golden parachute packages and requires automakers to sell or divest themselves of any privately owned or leased aircraft.
Congressional Democrats and the White House reached agreement on about $15 billion in emergency loans for the embattled U.S. auto industry. Sources in both parties say the breakthrough on the long-stalled bailout came after House Speaker Nancy Pelosi bowed to President George Bush's demand that the aid come from a fund set aside for the production of plug-in hybrids. The CEOs of General Motors, Ford and Chrysler have sought $34 billion in loans. The lesser amount reportedly is meant to tide them over until Barack Obama assumes the presidency.[5]
Bill Summary
The Auto Industry Financing and Restructuring Act of 2008 (H.R. 7321) is legislation providing $14 billion in emergency loans to eligible U.S. automakers. As a condition of the loans, participating firms must restructure their business operations. One or more administrators (or car czars) would be appointed to oversee the loans. Firms would have to submit plans to these administrators by March. If the administrator does not approve a firm's plan, the loans could be withdrawn immediately. The car czar could then order further restructuring or require the automaker to enter into Chapter 11 bankruptcy.[6]
Bill passage
House vote
On December 10, 2008, the House approved the auto-bailout bill by a 237-to-170-vote margin. Members of the House with domestic manufacturing plants within their districts voted for the legislation. Members whose districts employ workers at foreign carmakers' plants voted against the bailout.[7]
House Record Vote (690)
December 10, 2008
On Passage: H R 7321 Auto Industry Financing and Restructuring Act
On Passage
On Passage
Percentage of 'Aye' votes: 54% - Passed
Required percentage of 'Aye' votes: 1/2 (50%)
237
Ayes
170
Nays
| Dem | Rep | Other | |
| Ayes | 203 | 32 | 0 |
| Nays | 20 | 150 | 0 |
| Abst. | 11 | 15 | 0 |
Same for all scorecards:
- Name of bill: Auto Industry Financing and Restructuring Act of 2008
- Chamber: U.S. House of Representatives
- Roll call number: 690
- Congress number: 110th
- Session number: 2
- Vote link: U.S. House of Representatives record vote 690, 110th Congress, Session 2
| Scored vote | |
|---|---|
|
Scorecard: Drum Major Institute 2008 House Scorecard |
Org. position: Aye |
|
Description: "The automobile industry is a critical component of the American economy. Motor vehicle and parts industries employed over 700,000 people directly as of September and each job in the auto industry supports about 1.7 additional jobs in industries as diverse as textiles and retail. The Economic Policy Institute predicts that a worst-case-scenario shutdown of the entire U.S. auto industry would eliminate 3.3 million jobs—many of them solid middle-class positions. Most experts agree that bankruptcy in the current liquidity crisis would be devastating to the auto manufacturers: already weak sales would be exacerbated by consumers frightened to buy from a bankrupt manufacturer, and lending institutions normally accessible to bankrupt companies are now unavailable. As an alternative, this legislation imposes reasonable restructuring requirements, while ensuring that middle-class jobs are preserved in a period of deep economic crisis. The bill will prevent the short-term failure of the automobile industry in the United States and makes a leaner, more energy-efficient Detroit possible. An auto czar cannot make the Big Three automakers profitable. But the czar’s influence—backed up by the capacity to speed loan repayment and impose bankruptcy—and the thorough restructuring guidelines laid out by Congress can ensure that the American automakers do not once again fail to confront environmental concerns and recalcitrant management." (Original scorecard available at: http://www.drummajorinstitute.org/library/report.php?ID=63) | |
| Scored vote | |
|---|---|
|
Scorecard: National Journal 2008 House Scorecard |
Org. position: Aye |
|
Description: "Authorize $14 billion in federal loans to domestic automobile manufacturers. December 10. (237-170)" (Original scorecard available at: http://www.nationaljournal.com/njmagazine/cs_20090228_4813.php) | |
Differences existed between the legislation approved by the House and what the Senate considered. Notably, the House required that the manufacturers drop lawsuits against the State of California, which has enacted mandatory fuel-efficiency limits more stringent than those specified by the federal government. The Senate was expected to drop that provision.[7]
Senate vote
With the House bill unlikely to pass the Senate, supporters of an auto industry bill in the Senate attempted to use the Alternative Minimum Tax Relief Act (H.R. 7005), which had already passed the House in September 2008, as a so-called "shell" bill to which would be added a different version of the auto industry bill. However, negotiators in the Senate were unable to reach a compromise on a new proposed version of the auto bill and the plan failed when the Senate rejected a cloture motion that would have allowed them to proceed to consideration of the auto bill by a vote of of 52-35 on December 11, 2008.[8]
Senate Record Vote (215)
December 11, 2008
On the Cloture Motion (Motion to Invoke Cloture on the Motion to Proceed to Consider H.R. 7005. )
On the Cloture Motion
On the Cloture Motion
Percentage of 'Aye' votes: 52% - Cloture Motion Rejected
Required percentage of 'Aye' votes: 3/5 (60%)
52
Ayes
35
Nays
| Dem | Rep | Other | |
| Ayes | 41 | 9 | 2 |
| Nays | 4 | 31 | 0 |
| Abst. | 4 | 8 | 0 |
Members voiced several reasons for voting against cloture.[8] Minority Leader Mitch McConnell (R-Ky.) said oversight measures included in the legislation were not stringent enough. Sen. Bob Corker (R-Tenn.) tried to introduce a substitute amendment requiring the companies receiving loans reduce their debt obligations by two-thirds. GOP senators also called on the companies to reduce wages and benefits for employees at the firms to the level of those employed by foreign-based firms.[9]
Employees of the Big Three firms, represented by the United Auto Workers, agreed to make some concessions regarding pay and pensions, but wanted to meet a 2011 deadline. GOP Senators called on the reductions to be made by March 2009.[9]
Americans for Democratic Action, which supported cloture, selected the vote for their 2008 Senate scorecard, where they gave it the following description:
Motion to invoke cloture, limit debate, and vote on a bill related to the alternative minimum tax, which would serve as the vehicle for an emergency loan package for domestic automakers. Failing to receive the required 60 votes, the Motion was rejected 52-35[10]
The Drum Major Institute also supported cloture and selected the vote for its 2008 Senate scorecard, where it gave the following description:
The automobile industry is a critical component of the American economy. Motor vehicle and parts industries employed over 700,000 people directly as of September and each job in the auto industry supports about 1.7 additional jobs in industries as diverse as textiles and retail. The Economic Policy Institute predicts that a worst-case-scenario shutdown of the entire U.S. auto industry would eliminate 3.3 million jobs—many of them solid middle-class positions. Most experts agree that bankruptcy in the current liquidity crisis would be devastating to the auto manufacturers: already weak sales would be exacerbated by consumers frightened to buy from a bankrupt manufacturer, and lending institutions normally accessible to bankrupt companies are now unavailable. As an alternative, this legislation imposes reasonable restructuring requirements, while ensuring that middle-class jobs are preserved in a period of deep economic crisis. The bill will prevent the short-term failure of the automobile industry in the United States and makes a leaner, more energy-efficient Detroit possible. An auto czar cannot make the Big Three automakers profitable. But the czar’s influence—backed up by the capacity to speed loan repayment and impose bankruptcy—and the thorough restructuring guidelines laid out by Congress can ensure that the American automakers do not once again fail to confront environmental concerns and recalcitrant management.[11]
Articles and resources
Wikipedia also has an article on the Auto Industry Financing and Restructuring Act of 2008. This article may use content from the Wikipedia article under the terms of the GFDL.
See also
- Recovery Rebates and Economic Stimulus for the American People Act of 2008
- Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
- FHA Modernization Act of 2007
- FHA Housing Stabilization and Homeownership Retention Act of 2008
- Mortgage Cancellation Relief Act of 2007
- Mortgage Forgiveness Debt Relief Act of 2007
References
- ↑ "Congress, White House nearing deal on $15 billion bailout for Big Three automakers," The Associated Press, December 9, 2008.
- ↑ Congress, White House near deal for $15 billion auto bailout -- but not quite yet. Associated Press, December 10, 2008.
- ↑ "Auto Industry Financing and Restructuring Act," House Financial Services Committee, Dec. 10, 2008
- ↑ C. Tierney, "Car czar to help steer restructuring," Detroit News, Dec. 9, 2008]
- ↑ "Congress, White House Talking $15B Bailout," The Associated Press,
- ↑ Lori Montgomery and Paul Kane, "Vote on Detroit Bailout Draws Near," The Washington Post, December 9, 2008
- ↑ 7.0 7.1 Lori Montgomery and Paul Kane, "Auto Bailout Clears House but Faces Hurdles in Senate," The Washington Post, December 11, 2008
- ↑ 8.0 8.1 _
- ↑ 9.0 9.1 Joseph J. Schatz and Phil Mattingly, "Auto Plan at an Impasse in Senate," CQ Politics, December 11, 2008
- ↑ ADA Today, Spring 2009.
- ↑ From Drum Major Institute, "TheMiddleClass.org 2008 Congressional Scorecard"
External resources
External articles
- Wikipedia article on the subprime mortgage crisis
