Bid to Save GM, Chrysler Loans Dies in Senate

Deutschbag · Dec 12, 2008

http://abcnews.go.com/Politics/Economy/story?id=6439796

Senators voted down a bill to rescue Detroit automakers after a last-ditch attempt to renegotiate the deal died.

The Senate voted 52-35 on a shell bill that would have contained language that had the endorsement of the White House and was similar to a version that passed the House of Representatives. The 52 votes in favor of the shell bill were short of 60 needed for passage.
"To all those within the sound of my voice: We have tried very, very hard to legislate for the automobile industry," Senate Majority Leader Harry Reid, D-Nev., said on the Senate floor before the vote. "I am very sorry we have not been able to find a conclusion."
Reid's comments came after a night of negotiations involving Sen. Bob Corker, R-Tenn., who wanted to revise an existing rescue deal so that General Motors and Chrysler would be forced to pay back $14 billion in proposed government loans if they failed to slash labor costs a specified amount by March 31.
Corker met with fellow Republicans Thursday evening after talks with Democrats, and soon afterward, Reid made his announcement on the Senate floor.

"I dread looking at Wall Street tomorrow," Reid said. "It's not going to be a pleasant sight."
The White House quickly released a statement of regret after the failed Senate vote.
"It's disappointing that Congress failed to act tonight," deputy spokesman Tony Fratto said. "We think the legislation we negotiated provided an opportunity to use funds already appropriated for automakers, and presented the best chance to avoid a disorderly bankruptcy while ensuring taxpayer funds only go to firms whose stakeholders were prepared to make difficult decisions to become viable. We will evaluate our options in light of the breakdown in Congress."

In the end, Reid was among the 35 voting against the Senate's shell bill -- but only for procedural reasons, officials said. After the 11:09 p.m. ET vote, he urged the White House to use the part of a $700 billion economic rescue package already approved by Congress to help keep the auto industry afloat.
Democrats blamed Republicans for the bill's failure, but Senate Republican Leader Mitch McConnell, R-Ky., suggested many Republicans genuinely couldn't stomach the terms of the deal.
"The administration negotiated in good faith with the Democratic majority a proposal that was simply unacceptable to the vast majority of our side because we thought it, frankly, wouldn't work," McConnell said.
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Sam_Spade · Dec 12, 2008

All the more reason that Canada should not be throwing money at the problem either.

So, in other words.... fuck you, Jack Layton.

Tikiman6 · Dec 12, 2008

Financing GM is an awful idea. They are just doing poorly and thought hell, if the government is dishing out money, we should try to get our hands on some of that. The U.S. cannot function without a healthy financial system, which was the argument for giving money to the banks/ investment companies, but the U.S. can function without automotive industries... we just buy cheaper cars from japan. Economic efficiency baby.

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Bid to Save GM, Chrysler Loans Dies in Senate

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