“Car czar” proposed for any automaker bailout
WASHINGTON (Reuters) – A government “car czar” would oversee any bailout of U.S. automakers under proposed terms being negotiated by the White House and Congress.
‘CAR CZAR’ PROPOSAL
One leadership aide said both sides favored creation of a “car czar” role within the executive branch to oversee funds and ensure conditions were met.
Senior lawmakers hope next week to present a proposal for votes in both the House of Representatives and the Senate where there has been widespread skepticism about a bailout.
The companies have said they would accept strict terms as conditions for aid. GM and Chrysler said they would go so far as to reconsider a merger if it meant getting federal funds. Congress is not expected to demand such a step this time.
THEN WHY NOT BRANKRUPTCY – THAT IS WHAT BANKRUPTCY IS DESIGNED TO DO? WHY CREATE A NEW “CZAR” AND SPEND TAX MONEY ON A NEW AGENCY?
GM is expected to kick off a restructuring process that will resemble a bankruptcy proceeding but under the oversight of appointed officials rather than a federal judge.
EXACTLY WHY SHOULD WE CREATE THIS ADDITIONAL BUREAUCRACY WHEN THE BANKRUPTCY SYSTEM WORKS FOR EVERY OTHER COMPANY AND INDIVIDUAL? IS THERE SOME HIDDEN AGENDA?
The union, which has lost over a third of its membership this decade, has signaled that it will accept deep concessions now in a bid to save GM and Chrysler.
THIS IS SIMPLY NOT ACCURATE – THE UAW HAS ALSO SAID IT WILL MAKE NO FURTHER CONCESSIONS – EITHER WAY – A BANKRUPTCY JUDGE IS EMPOWERED, BY LAW, TO DIRECT ANY NECESSARY CONCESSIONS. LEGALLY, A “CZAR” DOES NOT HAVE THIS POWER.
$2.5 billion of GM’s market value could be wiped out for shareholders. The automaker is working to slash $30 billion in debt and could offer equity to existing creditors, including the United Auto Workers.Other conditions favored by many lawmakers included limiting executive compensation, imposing strict loan repayment terms, and protections for taxpayers that might include an equity stake in a restructured company.
THESE ARE THE EXACT TYPES OF ISSUES RESOLVED IN BAKRUPTCY COURTS EVRYDAY!
A “CAR CZAR” – JUST LIKE THE “TARP” (Troubled Assest Relief Program for the Banks) provides no guarantee for taxpayers ……
CONTACT YOUR CONGRESSPERSON HERE: http://www.usa.gov/Contact/Elected.shtml
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