What are the Various Auto-Industry Bailout Proposals?
What are the Various Auto-Industry Bailout Proposals?As bankruptcy looms, the big-three auto companies look to the federal government for rescue. What are the various plans being considered and how is the debate about a plan playing out?Answer: Original Stance: • Democrats: Congressional Democrats originally proposed that the $25 billion requested by the big-three auto companies be carved out of the Troubled Asset Relief Program (TARP), part of the $700-billion, financial-rescue fund otherwise known as the Emergency Economic Stabilization Act of 2008. They argue that the Treasury already has the authority to allocate the funds to the auto companies under the act. Democrats do not, however, have enough votes to require the Treasury to do so. • Republicans: The GOP and Whitehouse support the use of the $25 billion already allocated to the auto companies earlier in the year as part of the fuel-efficiency loan program. The Energy Department loan is earmarked to retool factories for the pro
