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Senators Push Compromise Auto Bailout

A small bipartisan group of senators reached agreement on legislation to extend financial aid to Detroit's troubled auto makers, but the bill faces an uncertain future on Capitol Hill. The measure -- a last ditch effort before Congress leaves town ahead of Thanksgiving -- would speed release of $25 billion in already approved loans designed to help the industry meet higher fuel-economy standards. Hope for a deal gave a boost to auto makers' stocks Thursday afternoon. Shares of General Motors Corp. recently tacked on 24% to $3.45, after moving as low as $1.70 earlier in the session. Ford Motor Co. was up 29% at $1.61. But similar approaches have been opposed by senior Democrats, including Speaker Nancy Pelosi, who have instead pushed an alternative measure that would carve $25 billion for the industry out of the $700 billion financial rescue fund. The compromise bill faces other hurdles, especially from liberals who don't want any retreat from environmental mandates on the industry. The odds are that Congress will break today without taking action on any legislation that would help would help GM, Ford and Chrysler LLC. Senate Majority Leader Harry Reid (D., Nev.) and Speaker Pelosi haven't formally made that decision, aides cautioned. Mr. Reid raised the prospect that the Senate could reconvene in December to take action. Ms. Pelosi on Wednesday batted down talk of a December session, saying that Congress could next consider auto-rescue legislation in January if they don't take it up this week. The bill, crafted by Sens. Carl Levin (D., Mich.) and George Voinovich (R., Ohio.), includes several safeguards meant to protect taxpayers and hold the industry accountable, said aides familiar with the measure. Also supporting the bill are Sens. Christopher "Kit" Bond (R., Mo.) and Debbie Stabenow (D., Mich.). Earlier Thursday, House Financial Services Committee Chairman Barney Frank told reporters "nothing's going to happen legislatively" this week... GM, F

Posted: 11/20/2008 1:51:17 PM by StockMarketFunding | with 0 comments


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