Lame Duck Bush Caves In To Auto Bailout / Bush Places His Legacy Ahead Of Country’s Best Interests

Outgoing Presdient Bush sealed his legacy with Republicans and Conervatives today when he caved into his own self impoosed pressure to complete a “bailout” of the “Detroit 3” against the wish of the American Public.

Public opinion polls show resounding opposition to a “Bailout” of the “Detroit 3” and despite this opposition, Bush choose a path he believes will improve his “legacy” with the American people.

Once again, Bush has failed to consider the unintended consequences and ultimate costs his decisions will have for  the American taxpayor.

BUSH HAS PLACED HIS CONCERN FOR HIS OWN LEGACY OVER THE BEST INTERESTS OF THE AMERICAN PEOPLE.

The Political Bull Shit is just unbelievable. The “Bailout” is referred to as a “loan”, yet no one believes the ‘Detroit 3″ can “repay” the loans if the meaningless conditions imposed on the “loans” are not met. The “Auto Bailout” blueprint has been borrowed driectly out of the “TARP” plan and fund – none of the conditions placed on the “TARP” program have been implemented.   http://www.msnbc.msn.com/id/28311743?GT1=43001

Bush promised the “Detroit 3” 17 Billion in Taxpayor money – to be provided from the “Troubled Asset Relief Program” or TARP – a fund never intended to provide such funding. http://www.msnbc.msn.com/id/28311743?GT1=43001  So instead of buying “troubled assets” or mortgages the “TARP” will not be used to pay UAW members 85% of their salaries not to work …. Brillant, just brillant!    

Bush stated that “letting the Auto Companies collapse is not a responsible course of action”.  What a ridiculous proposition. Letting failed companies collapse is exactly what the Government does every day – The US Government does not guarantee the success of failed businesses – nor should it support failed business at the expense of successful businesses as Bush now proposes.

Bush pretends to propose a whole new set of “conditions” for receiving the “loans”, “conditions” which are identical to the unkept promises made by Congress when they passed the “TARP” legislation. The “conditions” are nothing more than “political window dressing” to limit the public criticism of this failed President and his failed Congress.

Treasury Secretary Henry Paulson is to provide the funding from the “TARP”, this despite the fact that Paulson refuses to account for the spending that is being undertaken under the “TARP” program ……

Harvard Law Professor Elizabeth Warren, the Chairwoman of the Congressional Oversight Panel for the “TARP”, continues to express her frustration over Paulson’s failure to account for how he is spending the Billions of dollars of Taxpayor money under  ‘TARP”.   http://www.foxnews.com/politics/2008/12/18/bailout-watchdog-wheres-spending-plan/    

AND THIS IS THE MAN WHO WILL PROVIDE AN ORDERLY “BAILOUT” TO THE “DETROIT 3” – AS OPPOSED TO THE ORDERLY ADMINISTRATION OF THE BANKRUPTCY COURTS.

I DOUBT PAULSON WILL  EVEN BE ABLE TO PROVIDE AN ACCOUNTING OF  WHERE THE MONEY HAS BEEN SPENT.

The Bush “handout” pays “lip service” to the “Detroit 3” completing a “restructuring program” – the same “restructuring programs” Congress demanded from the “Detroit 3” when they returned to Congress on December 2 –

You might recall that the “Detroit 3”  returned “empty handed”  to Congress in December  – that is right, they retruned without any type of plans – just renewed requests for taxpayor money.

The penalty for not having completed a plan to justify the requested loan – nothing – Bush granted $17 Billion in loans without any type of “reorganization plan”. A “take the money first” and come back with a plan later, if you like, approach. No wonder the “Detroit 3” can’t get a loan in the public market place – the Banks want to see the “restructuring plan” upfront.  

This is just incredible. Do you know that the amount loaned to the “Detroit 3”  is equal to every family in the Country making a $5,000 personal loan to the “Detroit 3”. If the professional lenders wouldn’t ake the loan with an “upfront” restructuring plan” why did Bush make that commitment on our behalf.   

I, like the the rest of the overwhelming majority of Americans, are opposed making such a loan.

WHY DOESN’T CONGRESS STEP IN AND STOP THIS?

THE UAW IS ALREADY STATING IT WILL MAKE NO FURTHER CONCESSIONS, GEE WHAT A SURPRISE.

The UAW has idled “Detroit 3” plants with strikes twice in the last 14 months. The UAW lies to its membership when it failes to admit the “true” hourly “all in costs” of its labor contracts. Neither the UAW nor its membership believe that concessions are necessary. It is no wonder that the ‘Detroit 3″ is stuck with a failed business model.  

Don’t you think that if a “voluntary” means of spanning these differences was possible, that path would have already been taken. Throwing $17 Billion down the drain while the Detroit 3/ UAW continue on as usual is a ridiculous path to follow. 

So what happens in 3 months after $17 Billion of “good” taxpayor money has been trown down this rathole – and the “Detroit 3” have produced no restructuring plan …… Does anyone really think the Detroit 3 will suddenly find the money to repay the loans – of course not. Everyone in Washington knows the money will be “lost”. No one is predicting that the economy is going to turn around in 90 days – in fact – the predictions correctly predict a continued worsening of the economy for the next 12 months – maybe longer if the Government continues to prusue the failed “Bailout” and “Loan”  policies.  

Do you think there will be a sudden demand for the product currently being produced by the “Detroit 3”. To imply that will happen is simply fiction. Gee, is the American public lining up to buy a “Volt” –  GM’s electrical car that won’t even come to market for 2 years and then the owners of the Volt can look forward to recharging their vehicle every 30 miles.  Is this is the vehicle that will save GM in the next 90 days?

So what happens in 90 days? Is GM or Chrysler going to be economically viable? NO they won’t! Will the American Taxpayor be robbed of additional funds to continue  to pay UAW members 85% of their salaries not to work? (YES, THE JOB BANKS ARE STILL OPERATING AT FULL STEAM).

Bush’s bailout of the “Detroit 3” is really nothing more than an adoption of the Plan proposed by House Democrats, the same Plan that was rejected by the American People and the Senate Republicans. 

This “Bush Bailout” does nothing to “demand” or require any changes by the ‘Detroit 3″/UAW – changes necessary for the “Detroit 3” to survive and prosper.

Listen closely to what the “Detroit 3/UAW are saying – they don’t really believe fundamental change is required – thus they are doomed to fail – it will jst be a matter time and of how many Taxpayor dollars are spent making “political paybacks” before the American public says enough is enough.

So the curtain comes down on the last term of Bush’s Presidency. As the curtain closed Bush choose a path he thought might improve his legacy, not the path that was best for America or the “Detroit 3”.

When it really mattered most for the American public, Bush placed his concern for how he might be remebered in the short term over what was “right” for America in the long run. A final serving serving act of a failed Presidency.

This “Auto Bailout” will not improve the “Bush legacy”. Unfortunately the “Auto Bailout”, like the “TARP” or “Bank Bailout” will prove to be a failure. By ignoring the American Public’s opposition to this bailout, Bush has succeeded in alienating his last group of supporters.

The “Bush Legacy” is certainly one of his own making.

The Current $17 Billion Dollars Fails to Provide Loan Guarantees for Ford Motor Company – The Proposal Provides An Immediate $9.4 Billion to General Motors (Over 3 times the present value of  GM – The Government could have bought General Motors for 1/3 of  the loan amount). The Plan calls for an immediate  $4 Billion For Chrysler (an amount over 3 1/2 times the current value of Chrysler company – again the Government could have bought the Chrysler for 1/3 the loan amount   

Providing loan amounts in excess of 300% of a Company’s Market Value Would Never Happen In The Private Marketplace.   

Paulson To Oversee Auto Bailout – What The Hell Are They Thinking?

Paulson has Proved A Failure At Banking Bailout – Why Put Him In Chanrge Of A Second Bailout –

Are Powers Gratnted To Paulson Unconstitutional – Is Auto Bailout Circumventing A Proper Bankruptcy – Where Are Creditor Protections?

Where Are Taxpayor Protections? Where is the “NEW BUSINESS MODEL” for the “DETROIT 3”?

Bailout Watchdog: Where’s the Spending Plan?

Harvard professor Elizabeth Warren, the chairwoman of a congressional oversight panel, traveled to Washington Thursday to get answers on how Treasury is managing the unprecedented bailout.

 

The top congressional watchdog overseeing the nation’s financial bailout said Thursday she’s frustrated by the Treasury Department’s refusal to explain how it is doling out billions in taxpayer money.

Harvard law professor Elizabeth Warren, the chairwoman of a congressional oversight panel, traveled to Washington to get answers on how Treasury is managing the unprecedented bailout.

In an interview with The Associated Press, the Democratic appointee said she doesn’t understand why it’s taken so long for the Bush administration to explain its plan. Warren said she doesn’t want to believe it’s because there never was a plan for spending $700 billion in taxpayer money to rescue banks.

“I don’t buy a winter coat without a plan,” she said. “I can’t imagine how someone could think they were going to repair a failing economy and undertake spending billions of dollars in taxpayer money without a plan.”

Treasury Secretary Henry Paulson originally intended to use the money to buy risky loans from banks, freeing them to make new, safer loans. Shortly after the funds were approved, however, Paulson announced that $250 billion would instead be used to buy stock in U.S. banks.

“We’ve reversed directions more than once here, without any description of an overall strategy,” Warren said. “It’s not to say there’s not one, but I don’t think it should be such a well-hidden secret.”

Treasury spokeswoman Brookly Mclaughlin had no comment on Warren’s remarks. Treasury officials have said they are working toward several objectives, including stabilizing the financial markets, supporting the housing market and protecting taxpayers.

Nevertheless, the bailout has drawn criticisms from Republicans who oppose the huge new government program and from Democrats who want some of the money to be used to rework mortgages so homeowners can keep their houses.

The congressional oversight panel criticized Treasury last week for not saying exactly what problems they’re trying to fix or how the investments will fix them.

While Warren placed the blame squarely on Treasury for not laying out a clearer plan, she tempered any criticism of Congress, which placed few restrictions on the money as it hurriedly passed a law giving Treasury historic power to make multibillion-dollar decisions. Such requirements were omitted, she said, because the Bush administration pressured Congress to approve the bill quickly.

Paulson “was telling the Congress of the United States, ‘Do this right now,”‘ she said.

The five-member oversight panel is made up of three Democratic appointees and two Republicans. Senate Republican leader Mitch McConnell of Kentucky named outgoing Sen. John Sununu of New Hampshire to the panel Tuesday. Sununu has echoed Warren’s comments that taxpayers deserve to know how the money is being spent.

The panel is one of several entities monitoring the bailout, in addition to a special inspector general and the Government Accountability Office, a congressional auditor.

The GAO said in a critical report earlier this month that Treasury should toughen its monitoring of the bailout fund to ensure that banking institutions limit their top executives’ pay and comply with other restrictions.

http://www.foxnews.com/politics/2008/12/18/bailout-watchdog-wheres-spending-plan/

CONTACT YOUR CONGRESSPERSON AND TELL THEM TO END THE BAILOUTS: http://www.usa.gov/Contact/Elected.shtml

AN OVERWHELMING MAJORITY OF AMERICANS OPPOSE THE BAILOUTS – INSIST THAT YOUR REPRESENTATIVES ACT ACCORDINGLY.

Top Bailout Watchdog Says Treasury Is Out Of Control

Bailout Watchdog: Where’s the Spending Plan?

Harvard professor Elizabeth Warren, the chairwoman of a congressional oversight panel, traveled to Washington Thursday to get answers on how Treasury is managing the unprecedented bailout.

The top congressional watchdog overseeing the nation’s financial bailout said Thursday she’s frustrated by the Treasury Department’s refusal to explain how it is doling out billions in taxpayer money.

Harvard law professor Elizabeth Warren, the chairwoman of a congressional oversight panel, traveled to Washington to get answers on how Treasury is managing the unprecedented bailout.

In an interview with The Associated Press, the Democratic appointee said she doesn’t understand why it’s taken so long for the Bush administration to explain its plan. Warren said she doesn’t want to believe it’s because there never was a plan for spending $700 billion in taxpayer money to rescue banks.

“I don’t buy a winter coat without a plan,” she said. “I can’t imagine how someone could think they were going to repair a failing economy and undertake spending billions of dollars in taxpayer money without a plan.”

Treasury Secretary Henry Paulson originally intended to use the money to buy risky loans from banks, freeing them to make new, safer loans. Shortly after the funds were approved, however, Paulson announced that $250 billion would instead be used to buy stock in U.S. banks.

“We’ve reversed directions more than once here, without any description of an overall strategy,” Warren said. “It’s not to say there’s not one, but I don’t think it should be such a well-hidden secret.”

Treasury spokeswoman Brookly Mclaughlin had no comment on Warren’s remarks. Treasury officials have said they are working toward several objectives, including stabilizing the financial markets, supporting the housing market and protecting taxpayers.

Nevertheless, the bailout has drawn criticisms from Republicans who oppose the huge new government program and from Democrats who want some of the money to be used to rework mortgages so homeowners can keep their houses.

The congressional oversight panel criticized Treasury last week for not saying exactly what problems they’re trying to fix or how the investments will fix them.

While Warren placed the blame squarely on Treasury for not laying out a clearer plan, she tempered any criticism of Congress, which placed few restrictions on the money as it hurriedly passed a law giving Treasury historic power to make multibillion-dollar decisions. Such requirements were omitted, she said, because the Bush administration pressured Congress to approve the bill quickly.

Paulson “was telling the Congress of the United States, ‘Do this right now,”‘ she said.

The five-member oversight panel is made up of three Democratic appointees and two Republicans. Senate Republican leader Mitch McConnell of Kentucky named outgoing Sen. John Sununu of New Hampshire to the panel Tuesday. Sununu has echoed Warren’s comments that taxpayers deserve to know how the money is being spent.

The panel is one of several entities monitoring the bailout, in addition to a special inspector general and the Government Accountability Office, a congressional auditor.

The GAO said in a critical report earlier this month that Treasury should toughen its monitoring of the bailout fund to ensure that banking institutions limit their top executives’ pay and comply with other restrictions.

http://www.foxnews.com/politics/2008/12/18/bailout-watchdog-wheres-spending-plan/

WHERE IS CONGRESS?  WHO WILL DEMAND ACCOUNTABILITY?  AND NOW CONGRESS WANTS TO SPEND BILLIONS ON AN AUTO INDUSTRY BAILOUT?

Another Reason To Oppose A Car Czar / Auto Bailout

Executive pay limits may prove toothless – Loophole in bailout provision leaves enforcement in doubt

By Amit R. Paley

updated 2 hours ago

WASHINGTON – Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules.

The Troubled Asset Relief Program or “TARP” stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money.

Now, however, the small change looks more like a giant loophole, according to lawmakers and legal experts. In a reversal, the Bush administration has not used auctions for any of the $335 billion committed so far from the rescue package, nor does it plan to use them in the future. Lawmakers and legal experts say the change has effectively repealed the only enforcement mechanism in the law dealing with lavish pay for top executives.

“The flimsy executive-compensation restrictions in the original bill are now all but gone,” said Sen. Charles E. Grassley (Iowa), ranking Republican on of the Senate Finance Committee.

The modification reflects how the rapidly shifting nature of the crisis and the government’s response to it have led to unexpected results that are just now beginning to be understood. The Government Accountability Office, the investigative arm of Congress, issued a critical report this month about the financial industry rescue package that said it was unclear how the Treasury would determine whether banks were following the executive-compensation rules.

Michele A. Davis, spokeswoman for the Treasury, said the agency is working to develop a policy for how it will enforce the executive-compensation rules. She would not say when the guidance would be issued or what penalties it might impose. But she said the companies promised to follow the rules in contracts with the department.

Unprecedented restrictions
The final legislation contained unprecedented restrictions on executive compensation for firms accepting money from the bailout fund. The rules limited incentives that encourage top executives to take excessive risks, provided for the recovery of bonuses based on earnings that never materialize and prohibited “golden parachute” severance pay. But several analysts said that perhaps the most effective provision was the ban on companies deducting more than $500,000 a year from their taxable income for compensation paid to their top five executives.

http://www.msnbc.msn.com/id/28232631

DJIA Down 300 Points In Premarket Trading / Follows International Markets

US Futures & Markets Indicators

Dow Jones

-320.00

8250.00

12/12 6:08am

FTSE 100

-186.58

-4.25%

4,202.11

XETRA-DAX

-239.45

-5.02%

4,527.75

CAC 40

-187.70

-5.68%

3,118.43

HANG SENG

-855.51

-5.48%

14,758.39

NIKKEI 225

-484.68

-5.56%

http://money.cnn.com/data/premarket/

Auto industry bailout plan dies in the Senate

Collapse comes after bipartisan talks break down over union wage cuts

WASHINGTON – A $14-billion emergency bailout for U.S. automakers collapsed in the Senate after the United Auto Workers union refused to accede to Republican demands for swift wage cuts.

The collapse late Thursday came after bipartisan talks on the auto rescue broke down over Republican demands that the union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

“We were about three words away from a deal,” said Sen. Bob Corker of Tennessee, the GOP’s point man in the negotiations, referring to any date in 2009 on which the UAW would accept wage cuts.

http://www.msnbc.msn.com/id/28166218

THE PROPOSED AUTO BAILOUT BILL [With Analysis] Part 3

PROPOSED AUTO BAILOUT BILL, Contniued – PART 3

 (b) EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE

(1) IN GENERAL

During the period in which any financial assistance under this Act remains outstanding, the eligible automobile manufacturer which received such assistance shall be subject to—

(A) the standards established by the President’s designee under paragraph (2); and          

(B) the provisions of section 162(m)(5) ofthe Internal Revenue Code of 1986, as applicable.

(2) STANDARDS REQUIRED

The President’s designee shall require any eligible automobile manufacturer which received any financial assistance under this Act to meet appropriate standards for executive compensation and corporate governance.

(3) SPECIFIC REQUIREMENTS

The standards established under paragraph (2) shall include—

(A) limits on compensation that exclude incentives for senior executive officers of an eligible automobile manufacturer which received assistance under this Act to take unnecessary and excessive risks that threaten the value of such manufacturer during the period that the loan is

outstanding;

 

 

 

 

(4) DIVESTITURE

During the period in which any financial assistance provided under this Act to any eligible automobile manufacturer is outstanding, the eligible automobile manufacturer may not own or lease any private passenger aircraft, or have any interest in such aircraft, except that such eligible automobile manufacturer shall not be treated as being iviolation of this provision with respect to any aircraft or interest in any aircraft that was owned or held by the manufacturer immediately before receiving such assistance, as long as the recipient demonstrates to the satisfaction of the President’s designee that all reasonable steps are being taken to sell or divest such aircraft or interest.

[AND THE CONGRESSMAN STOOD BEFORE THE CAMERA AND SMILED AS HE SAID, “THIS PROGRAM WILL MAKE THE AUTO COMPANIES GET RID OF THEIR FLEET OF PRIVATE JETS” – Will that actually happen – Probably not – The Auto Companies are allowed to “CHARTER” the Jets back – Does this game save the American Taxpayor any money – NO, but it makes for a great TV sound bite for the Congressman – while he pulls the wool over the publics eyes]

(5) DEFINITIONS.—For purposes of this subsection, the following definitions shall apply:

 

The term ‘‘senior executive officer’’ means an individual who is 1 of the top 5 most highly paid executives of a public company, whose compensation is required to be disclosed pursuant to the Securities Exchange Act of 1934, and any regulations issued thereunder, and non public company counterparts.

(B) GOLDEN PARACHUTE PAYMENT

The term ‘‘golden parachute payment’’ means any payment to a senior executive officer for departure from a company for any reason, except for payments for services performed or benefits accrued.

(c) PROHIBITION ON PAYMENT OF DIVIDENDS.—Except with respect to obligations owed pursuant to law to any nonaffiliated party or any existing contract with any nonaffiliated party in effect as of December 2, 2008, no dividends or distributions of any kind, or the economic equivalent thereof (as determined by the President’s designee), may be paid by any eligible automobile manufacturer which receives financial assistance under this Act, or any holding company or company that controls a majority stake in the eligible automobile manufacturer, while such financial assistance is outstanding.

[THIS WILL SIMPLY SLOW DOWN ANY POTENTIAL THE “DETROIT 3” HAVE OF MAKING A RECOVERY – NOT ONLY DOES BANKRUPTCY REOGANIZATION NOT INVOLVE AN OUTLAY OF TAXPAYOR CASH – IMMEDIATELY AFTER THE BANKRUPTCY REORGANIZATION IS COMPLETED – THE “DETROIT 3” CAN START PAYING DIVIDENDS IF THEY ARE MAKING ANY MONEY – WHICH COURSE OF ACTION DO YOU THINK ENCOURAGES PRIVATE INVESTMENT IN THE “DETROIT 3”]

(d) OTHER INTERESTS SUBORDINATED

(1) IN GENERAL

In the case of an eligible automobile manufacturer which received a loan under this Act, to the extent permitted by the terms of any obligation, liability, or debt of the eligible automobile manufacturer in effect as of December 2, 2008, any other obligation of such eligible automobile manufacturer shall be subordinate to such loan, and such loan shall be senior and prior to all obligations, liabilities, and debts of the eligible automobile manufacturer, and such eligible automobile manufacturer shall provide to the Government, all available security and collateral against which the loans under this Act shall be secured.  [AGAIN, THIS PROVISION WILL HINDER AND NOT ENCOURAGE PRIVATE INVESTMENT IN THE “DETROIT 3” – A BANKRUPTCY REORGANIZATION WILL GIVE THE “DETROIT 3” a “FRESH START” AND NOT SADDLE THEM WITH TERMS THAT WILL INHIBIT RATHER THAN ENCOURAGE NEW INVESTMENT IN THE “DETROIT 3”]

(2) APPLICABILITY IN CERTAIN CASES

In the case of an eligible automobile manufacturer referred to in paragraph (1), the securities of which are not traded on a national securities exchange, a loan under this Act to the eligible automobile manufacturer shall—

(A) be treated as a loan to any holding company of, or company that controls a majority stake in, the eligible automobile manufacturer; and

(B) be senior and prior to all obligations, liabilities, and debts of any such holding company or company that controls a majority stake in the eligible automobile manufacturer.

 

(1) DISCHARGE

A discharge under title 11, [A BANKRUPTCY REORGANIZATION – THIS BAILOUT BILL RECOGNIZES THE PROBABLITY THAT A CHAPTER 11 REORGANIZATION WILL OCCUR EVEN IF THE DETROIT 3 GET THE BAILOUT MONIES] United States Code, shall not discharge an eligible automobile manufacturer, or any successor in interest thereto, from any debt for financial assistance received pursuant to this Act.

[THERE IS A CONSIDERABLE QUESTION AS TO WHETHER THIS PROVISION WILL BE ENFORCABLE IN A COURT OF LAW IF THE “DETROIT 3” FILE FOR BANKRUPTCY  REORGANIZATION AT A LATER TIME – IT IS A GUARANTEE THAT THE OTHER “CREDITORS” OF THE “DETROIT 3” WILL CHALLENGE THIS PROVISION AS VIOLATING THEIR RIGHTS]  

(2) EXEMPTION.—Any financial assistance provided to an eligible automobile manufacturer under this Act shall be exempt from the automatic stay established by section 362 of title 11, United States Code.

(3) INTERESTED PARTIES

Notwithstanding any provision of title 11, United States Code, any interest in property or equity rights of the United States arising from financial assistance provided to an eligible automobile manufacturer under this Act shall remain unaffected by any plan of reorganization, except as the United States may agree to in writing.

SEC. 13. OVERSIGHT AND AUDITS.

(a) COMPTROLLER GENERAL OVERSIGHT

(1) SCOPE OF OVERSIGHT

The Comptroller General of the United States shall conduct ongoing oversight of the activities and performance of the President’s designee.

(2) CONDUCT AND ADMINISTRATION OF OVERSIGHT

(A) GAO PRESENCE

The President’s designee shall provide to the Comptroller General appropriate space and facilities for purposes of this subsection.

(B) ACCESS TO RECORDS

To the extent otherwise consistent with law, the Comptroller General shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other papers, things, or property belonging to or in use by the President’s designee, at such reasonable time as the Comptroller General may request. The Comptroller General shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General deems appropriate.

 

The Comptroller General shall submit reports of findings under this section to Congress, regularly and not less frequently than once every 60 days. The Comptroller General may also submit special reports under this subsection, as warranted by the findings of its oversight activities.

(b) SPECIAL INSPECTOR GENERAL

It shall be the duty of the Special Inspector General established under section 121 of Public Law 110-343 to conduct, supervise, and coordinate audits and investigations of the President’s designee in addition to the duties of the Special Inspector General under such section and for such purposes. The Special Inspector General shall also have the duties, responsibilities, and authorities of inspectors general under the Inspector General Act of 1978, including section 6 of such Act. In the event that the Office of the Special Inspector General is terminated, the Inspector General of the Department of the Treasury shall assume the responsibilities of the Special Inspector General under this subsection.

(c) ACCESS TO RECORDS OF BORROWERS BY GAO.

Notwithstanding any other provision of law, during the period in which any financial assistance provided under this Act is outstanding, the Comptroller General of the United States shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other papers, things, or property belonging to or in use by the eligible automobile manufacturer, and any subsidiary, affiliate, or entity holding an ownership interest of 50 percent or more of such eligible automobile manufacturer (collectively referred to in this section as ‘‘related entities’’), and to any officer, director, or other agent or representative of the eligible automobile manufacturer and its related entities, at such reasonable times as the Comptroller General may request. The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General deems appropriate.

SEC. 14. AUTOMOBILE MANUFACTURERS’ STUDY ON POTENTIAL MANUFACTURING OF TRANSIT VEHICLES.

(a) IN GENERAL.—Each eligible automobile manufacturer which receives financial assistance under this Act shall conduct an analysis of potential uses of any excess production capacity (especially those of former sport utility vehicle producers) to make vehicles for sale to public transit agencies, including—

(1) the current and projected demand for bus and rail cars by American public transit agencies; [The Government is dictating expenditure of taxpayor funds on “studies” of demand for “buses” amd “railcars” – The Government simpoly has no business getting involved like this – everyone is trying to “make a buck” off of this situation – Just like the “TARP”] 

(2) the potential growth for both sales and supplies to such agencies in the short, medium, and long term;

(3) a description of existing ‘‘Buy America’’provisions, and data provided by the Federal Transit Administration regarding the use or request of waivers from such provisions; and(4) any recommendations as to whether such actions would result in a business line that makes

sense for the automobile manufacturer. [JUST WHAT, EXACTLY, QUALIFIES THE GOVERNMENT TO DO THIS AND WHY DOES THE GOVERNMENT THINK IT IS APPROPRIATE TO GO DOWN THIS PATH. I’M SURE THE COMPANIES WHO ALREADY MAKE THESE PRODUCTS WANT TO KNOW WHAT THE HECK THE GOVERNMENT IS UP TO]   

 

The Comptroller General of the United States shall review the analyses conducted under this section, and shall provide reports there on to the Congress and the President’s designee.

SEC. 15. REPORTING AND MONITORING.

(a) REPORTING ON CONSUMMATION OF LOANS

The President’s designee shall submit a report to the Congress on each bridge loan made under section 4 not later than 5 days after the date of the consummation of such loan.

 

The President’s designee shall submit a report to the Congress on the restructuring progress assessment measures established for each manufacturer under section 5(a) not later than 10 days after establishing the restructuring progress assessment measures.

(c) REPORTING ON EVALUATIONS

The President’s designee shall submit a report to the Congress containing the detailed findings and conclusions of the President’s designee in connection with the evaluation of an eligible automobile manufacturer under section 5(b). t 09 2002 10:55 Dec 10, 2008 Jkt 000000 PO 00000 Frm

(d) REPORTING ON CONSEQUENCES FOR FAILURE TO COMPLY.—The President’s designee shall submit a report to the Congress on the exercise of a right under section 11(f) to accelerate indebtedness of an eligible automobile manufacturer under this Act or to cancel any other financial assistance provided to such eligible automobile manufacturer, and the facts and circumstances on which such exercise was based, before the end of the 10-day period beginning on the date of the exercise of the right.

(e) MONITORING

The President’s designee shall monitor the use of loan funds received by eligible automobile manufacturers under this Act, and shall report to Congress once every 90 days (beginning 30 days after the date of enactment of this Act) on the progress of the ability of the recipient of the loan to continue operations and proceed with restructuring processes that restore the financial viability of the recipient and promote environmental sustainability. [Sound just like the requirements of the “TARP” – They call a meeting and the representatives come in and when they are asked – “Well, where has the taxpayor money been spent, which “toxic assets did you buy”, which “derivative contacts were purchased”, who received the taxpayors money? They answer, “we don’t know, and if we did, we couldn’t tell you!” And then Congress does nothing] 

SEC. 16. REPORT TO CONGRESS ON LACK OF PROGRESS TOWARD ACHIEVING AN ACCEPTABLE NEGOTIATED PLAN.

 

At any such time as the President’s designee determines that action is necessary to avoid disruption to the economy or to achieve a negotiated plan, the President’s designee shall submit to Congress a report outlining any additional powers and authorities necessary to facilitate the completion of a negotiated plan required under section 6. [Banruptcy Courts have all the power that is needed – Someone must have a plan to make a lot of bucks of this scam by avoiding the Bankrauptcy Courts]

(b) IMPEDIMENTS TO ACHIEVING NEGOTIATED PLANS

If the President’s designee determines, on the basis of an evaluation by the President’s designee of the progress being made by an eligible automobile manufacturer toward meeting the restructuring progress assessment measures established under section 5, that adequate progress is not being made toward achieving a negotiated plan by March 31, 2009, the President’s designee shall submit to Congress a report detailing the impediments to achievement of a negotiated plan by the eligible automobile manufacturer.

SEC. 17. SUBMISSION OF PLAN TO CONGRESS BY THE

PRESIDENT’S DESIGNEE.

 

[OR THROUGH BANKRUPTCY REORGANIZATION]

SEC. 18. GUARANTEE OF LEASES OF QUALIFIED TRANSPORTATION PROPERTY.

(a) GUARANTEE

Upon the request of a lessee of qualified transportation property, the President’s designee shall serve as a guarantor with respect to all obligations of such lessee with respect to leases of such qualified transportation property. Such guarantee shall be on such terms and conditions as are determined by the President’s designee, not later than 14 days after the date of enactment of this section. [This is in addition to Billions in cash]

 

(1) IN GENERAL.—Any claims under this section in excess of collateral held for the benefit of the President’s designee shall be paid from the General Fund of the Treasury out of funds not otherwise appropriated.

(2) RECOUPMENT FEE

Subsequent to any payment made under paragraph (1), the President’s designee shall recoup amounts paid under paragraph

(1) by establishing a fee that is sufficient to recoup the amount of the claim payment not later than 3 years after the date of such claim payment from any lessee or guarantor for whom the claim was paid or for whom a guarantee was issued.

(c) DEFINITIONS

For purposes of this section

(1) the term ‘‘qualified transportation property’’ means domestic property subject to a lease that was approved by the Federal Transit Administration prior to January 1, 2006; and (2) the term ‘‘guarantor’’ includes, without limitation, any guarantor, surety, and payment undertaker.

SEC. 19. COORDINATION WITH OTHER LAWS.

(a) IN GENERAL

No provision of this Act may be construed as altering, affecting, or superseding—

(1) the provisions of section 129 of division A of the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, relating to funding for the manufacture of advanced tech

nology vehicles;

 

(b) LIMITATION

Except to provide bridge financing or to implement a restructuring plan pursuant to this Act, no funds from the United States Treasury may be used for the purpose of assisting an eligible automobile manufacturer to achieve financial viability or otherwise to avoid bankruptcy.

[AND WHAT DOES THAT MEAN]

(c) AUTHORIZATION OF FISCAL YEAR 2009 COST OF LIVING SALARY ADJUSTMENT FOR J

USTICES AND JUDGES

Pursuant to section 140 of Public Law 97–92,

(WHY CHOOSE THIS BILL TO ADD IN A PAY INCREASE FOR FEDERAL JUDGES) 

 

Code.NOW BACK TO THE AUTO BAILOUT

(1) IN GENERAL

Subject to paragraphs (2) and (4), the antitrust laws shall not apply to meetings, discussions, or consultations among an eligible automobile manufacturer and its interested parties for the purpose of achieving a negotiated plan pur

suant to section (6)(a)(2). 

Paragraph (1) shall not apply with respect to price-fixing, allocating a market between competitors, monopolizing (or attempt

ing to monopolize) a market, or boycotting. 

[HOW WILL ANYONE KNOW – THE MEETINGS HAVE BEEN EXEMPTED FROM “PUBLIC MEETINGS” REQUIREMENTS – ANYONE WANT TO BUY A SENATE SEAT WHILE WE ARE AT IT] 

 

The Attorney General of the United States and the Federal Trade Commission shall, to the extent practicable, receive reasonable advance notice of, and be permitted to participate in, each meeting, discussion, or consultation described in paragraph (1).

(4) PRESERVATION OF ENFORCEMENT AUTHORITY

Paragraph (1) shall not be construed to preclude the Attorney General of the United States or the Federal Trade Commission from bringing an enforcement action under the antitrust laws for injunctive relief. 

 

Paragraph (1) shall apply only with respect to meetings, discussions, or consultations that occur within the 3-year period beginning on the date of the enactment of this Act.

(6) DEFINITION.—For purposes of this subsection, the term ‘‘antitrust laws’’— 

SEC. 20. TREATMENT OF RESTRUCTURING FOR PURPOSESOF APPLYING LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES.

Section 382 of the Internal Revenue Code of 1986 shall not apply in the case of an ownership change resulting from this Act or pursuant to a restructuring plan ap

proved under this Act. 

 

Amounts provided by this Act are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress), the concurrent resolution on the budget for fiscal year 2008.

http://www.house.gov/apps/list/press/financialsvcs_dem/autobill.pdferDate 0ct 09 2002 10:55 Dec 10, 2008 Jkt 000000 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 C:\TEMP\AUTO_006.XML HOLCPC

SEC. 21. EMERGENCY DESIGNATION.(A) has the same meaning as in subsection (a) of the first section of the Clayton Act (15) U.S.C. 12(a)), except that such term includes section 5 of the Federal Trade Commission Act (15 U.S.C. 45), to the extent that such section 5 applies to unfair methods of competition; and (B) includes any provision of State law that is similar to the laws referred to in subparagraph (A).(5) SUNSET

(3) ANTITRUST AGENCY PARTICIPATION(2) EXCLUSIONS(d) ANTITRUST PROVISIONSJustices and judges of the United States are authorized during fiscal year 2009 to receive a salary adjustment in accordance with section 461 of title 28, United States

(2) any existing authority to provide financial assistance or liquidity for purposes of the day-to-day operations in the ordinary course of business or research and development.(b) RECOUPMENT OF PAYMENT OF CLAIMSUpon submission of a report pursuant to section 16(b), the President’s designee shall The The Presidents Designee shall provide to Congress a plan that represents the judgement of the President’s designee as to the steps necessary to achieve the long-term viability, international competitiveness, and energy efficiency of the eligible automobile manufacturer, consistent with the factors set forth in section 6(b), including through a negotiated plan, a plan to be implemented legislation, or a reorganization pursuant to chapter 11 of title 11, United States Code. (a) AUTHORITY TO FACILITATE A NEGOTIATED PLAN.(b) REPORTING ON RESTRUCTURING PROGRESS ASSESSMENT MEASURES(b) GAO REVIEW AND REPORT(3) REPORTING

(e) ADDITIONAL TAXPAYER PROTECTIONS(A) SENIOR EXECUTIVE OFFICER(E) a prohibition on any compensation plan that would encourage manipulation of such automobile manufacturer’s reported earnings to enhance the compensation of any of its employees. [I JUST HATE WHEN THE CONGRESS SMIRKS AND LIES TO THE PUBLIC WITH “BILL LANGUAGE” LIKE THIS – THE CONGRESSPERSON WILL STAND IN FRONT OF THE CAMERAS AND SAY “WE ELIMINATED CEO BONUSES”, JUST LIKE WITH THE WALL STREET FIRMS – THEN THEY LET THEM COLLECT THE SAME BONUSES UNDER OTHER NAMES – SUPPLEMENTAL SALARY PAYMENTS, RETENTION PAYMENTS – WHILE THE FIRMS CLAIM “OH THAT WASN’T BAILOUT MONEY WE USED – AND CONGRESS DOES NOTHING – THIS LANGUAGE WON’T WORK ANY BETTER THAN THE “TARP” LANGUAGE DID](D) a prohibition on such automobile manufacturer paying or accruing any bonus or incentive compensation during the period that the loan is outstanding to the 25 most highly-compensated employees; and(C) a prohibition on such automobile manufacturer making any golden parachute payment to a senior executive officer during the period that the loan is outstanding;(B) a provision for the recovery by such automobile manufacturer of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains, or other criteria that are later found to be materally inaccurate;

%d bloggers like this: