Legal Commentary

Help For Auto Makers Moves Forward

By TChris

Call it a rescue plan, call it a loan, call it a bailout: can we call it a done deal?

Democratic leaders in Congress and the White House will meet again on Saturday to negotiate a rescue plan to help U.S. automakers, a congressional source told Reuters on Friday.

Nancy Pelosi abandoned her objection to using an existing $25 billion advanced technology fund to help pay for the bailout rescue plan loan. She conditioned her compromise on "a guarantee that those funds will be replenished in a matter of weeks” to avoid delaying the development of more fuel-efficient vehicles.

Congress needs to provide oversight and assure accountability, but do we really need a car czar? Can we at least get rid of the drug czar to preserve a proper balance of czardoms? [more ...]

Any legislation Congress might approve - in an emergency session next week - is likely to include appointment of a trustee or board to assure that General Motors Corp., Ford Motor Co., and Chrysler LLC use the aid to return their firms to viability. ...

Sen. Charles Schumer (D-N.Y.) on Friday supported the idea of an auto trustee who would oversee spending of federal aid, set conditions and make sure the promised concessions are met. "The 'car czar' approach I envision would approximate a bankruptcy proceeding, except that it would occur outside of a bankruptcy court," Schumer wrote to colleagues Friday. "A single government trustee would be appointed to lead the entire process."

Full post as published by TalkLeft on December 05, 2008 (boomark / email).