Big Three could receive $15 billion worth of federal loans
By Andrew C., 30 Aug, 2010. 0 Comments
The American President and the members of Congress have obviously reached a consensus to afford $15 billion worth of federal loans to the Big Three. However, this is clearly much less than the $25 billion that was initially applied for and much smaller in comparison to the $34 billion that the CEO's appealed for during the past two days of testimony at the US Congress.
Light came when Democratic Speaker of the House, Nancy Pelosi, succumbed to the demand of Bush that the financing come from a previous aid bill that provided the car manufacturers $25 billion for refurbishing and making more power efficient vehicles. In the following week both Congress and Senate will discuss the planned legislation and according to popular opinion travel smoothly through both chambers of Congress and be on the table of the President briefly afterwards. The fast passage of the legislation should assist to guarantee that the big three should be in possession of the cash in a few weeks. More details after the jump!
There are some details still to be worked out, however. Pelosi released a statement where she said that "Congress will insist that any legislation include rigorous and ongoing oversight to guarantee that taxpayers are protected and that resources are directed to ensure the long-term viability and competitiveness of the American automobile industry." It was furthermore agreed by both political parties that the legislation should provide for the creation of a new bureaucracy to make sure that the funds are utilized for the purpose of their intention. The aid is expected to permit the Detroit Big Three to hold out until March of next year.
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