Monday, December 8, 2008

Bailout Draft sent to White House

Late this afternoon, Congressional Democrats sent the White House a draft of a roughly $15 billion auto bailout. The draft stipulates a "car czar" who is appointed by the President and is responsible for the oversight of these loans. The draft bill has other conditions, such as limits on executive compensation and a prohibition against shareholder dividends while the loans are pending. The bill also prohibits loan recipients from challenging state greenhouse gas emissions rules. Apparently, there are no deal breakers in this initial draft and we should have a vote before the end of the week.

More from Automotive News:

"Negotiations continued Monday night on legislation that would provide an estimated $15 billion in emergency federal loans to General Motors and Chrysler LLC.

Although differences remained between Democratic leaders of Congress and the White House, no issue emerged as an obvious deal-breaker.

"I'm very encouraged," House Speaker Nancy Pelosi, D-Calif., said in a late-afternoon briefing for reporters."

Of course, nothing happens very fast in Washington, so we will have to wait and see if the Senate can get the 60 votes it needs to overcome any filibuster effort.

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