Congressional debate and voting could begin as soon as Wednesday. Procedural rules? What rules?
This could be a tough sell in the Senate; 60 votes are needed (to prevent filibuster) and Democrats hold only 50 seats until January 2009 when the 111th Congress convenes.
The process has been not unlike the one that engineered the Chrysler bailout. It includes warrants (equal to 20 percent of the loans). It includes the requirement that automakers negotiate with others: vendors and labor, specifically, even though labor made concessions last year. The deal also reportedly includes a requirement to improve fuel efficiency.
Chrysler, however, may be getting the short end of the stick this time around. That's in part because Chrylser is now an LLC - limited liability partnership - with limited financial disclosure. Transparency? Not so much.
Comparing Bailouts
Dave Hornstein believes that "the financial sector has been treated much more favorably by the feds" than the auto industry.
And from the Detroit News, Daniel Howes writes:
The congressional committees that wrote a $700 billion financial bailout package, lent $150 billion to AIG and pumped $20 billion into Citigroup demand detailed plans from the automakers and four days of hearings for what's shaping up to be $15 billion in loans.
Or the chairman of the Senate Banking Committee, Chris Dodd, D-Conn., suggests Sunday that GM Chairman Rick Wagoner should "go" and make way for new leadership because the current one led GM off a cliff.
This from the senator who blocked reform of Fannie Mae and Freddie Mac three years ago, was their top recipient of campaign cash, pocketed more than $300,000 in contributions from PACs and executives tied to Citigroup and then spearheaded the legislative effort to craft the financial rescue package.
In case you're keeping score, the automotive industry (manufacturers and dealers) contributed $16,063,956 to federal campaigns in the 2008 election cycle. About one-third came from PACs, two-thirds from individuals. Most (72 percent) went to Republicans.
Transportation unions (include air transport unions) kicked in another $14 million, mostly via PACs. That's an inflated total of $30 million.
Finance, insurance and real estate? $421 million, about 14 percent from PACs. Split almost 50-50 between Rs and Ds.
Think that data should be broken down a bit? Securities and investment firms: $138 million. Real estate: $122 million. Insurance: $42 million. Commercial banks: $34 million. And finance/credit companies: $6 million.
See
:: Americans Split On Auto Bailout
:: What Was The Chrysler Bailout?
:: What Was the Lockheed Bailout?
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