[Congressional Record Volume 154, Number 185 (Wednesday, December 10, 2008)]
[House]
[Pages H10947-H10948]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                BRIDGE LOAN FOR THE AUTOMOTIVE INDUSTRY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Ohio (Ms. Kaptur) is recognized for 5 minutes.
  Ms. KAPTUR. Mr. Speaker, it's a particular joy this evening to have 
Congressman Nick Lampson in the Chair as Speaker Pro Tem and thank him 
for his remarkable and exemplary service to the people of the United 
States.
  Tonight, I would like to address the subject of the fact that a 
majority of House Members today voted for a bridge loan, a very tightly 
structured bridge loan, to throw a lifeline to American workers, 
American communities, American manufacturing, to save American jobs, in 
fact, one of every 10 jobs in our country. They're jobs not just in the 
so-called automotive assembly plants, but twice as many jobs in the 
automotive parts plants, the steel industry, the plastic industry, the 
semi-conductor industry, even the textile industry. Nearly half of that 
production is used in automotive products. It is simply staggering the 
way in which this integrated set of production occurs in our country.
  What was passed was a bridge loan to the auto industry, and I 
underline the word ``loan.'' It has to be paid back. It has to be paid 
back in 7 years, and it has to be paid back with interest, 5 percent 
interest over the first 5 years, and 9 percent interest over the last 2 
years.

[[Page H10948]]

  It requires restructuring by March 31, severe restructuring in order 
to place the United States in a competitive position again in our 
country and globally. It requires enormous sacrifice.
  Now, what's interesting to me is the amount of the total loan was $15 
billion; yet Wall Street received $700 billion plus, $750 billion, in 
that bill that passed here. There were no such requirements. There's no 
mandatory payback. There are no sacrifices that are as significant as 
they're being asked of this manufacturing industry, and the 
manufacturing of automobiles is a really tangible, goods producing 
industry. It creates real value. It creates wealth because you sell 
something. Wall Street's bailout is basically accounting and paper 
trades. They don't really produce anything.
  And one of the points I want to make tonight is that in order to lead 
America forward out of this deep, deepening recession in which we find 
ourselves, we have to manufacture our way out. We have to grow our way 
out of it, and we are not in recession because of the automotive 
industry. In fact, the reverse is true. The auto industry is the victim 
of the credit crunch caused by the mortgage foreclosure crisis. The 
bailout of Wall Street, the improper bill that was passed here, is 
making the situation worse, and it's affecting industries like the 
automotive industry.
  I visited the U.S. Treasury Department today as well to share a list 
of foreclosures just in my home county of Lucas County in Toledo, Ohio. 
That is 4,100 homes since the beginning of this year. Before the end of 
January of next, an additional 600 families will lose their homes just 
in that county because the TARP program, the Wall Street bailout 
program, is not working at the local level. The list is so long I could 
roll it through the Chamber and out that door, and there would still be 
more paper left, and that's with four columns. In fact, it could 
probably be rolled over to the Senate for the size that it is.
  Now, why is the Treasury program not working? The first reason it's 
not working is Treasury's not a housing agency. Its experience is not 
in resolving mortgage workouts. More paper shuffling isn't going to 
solve the problem.
  What's happening over at Treasury is they're buying banks. They are 
concentrating the banking system of this country rather than doing 
mortgage workouts, and they're concentrating them up on Wall Street, 
and the big banks like PNC, which has just bought National City Bank in 
the State of Ohio, National City shouldn't have been purchased. A 
workout should have been done in Ohio for the loans that gravitated to 
Ohio and may have been troubled. Seventy-five percent of the loans were 
working before the Treasury Department took over. The problem is that 
the Treasury Department is like a truck with several wheels, and 
they're all going in a different direction. There's not coordination.
  The Federal Deposit Insurance Corporation should be involved to do 
the mortgage workouts on the books of local banks. That's really not 
happening for most of the loans at risk.
  The Securities and Exchange Commission should be taking a look at 
their accounting standards and marking them to true value.
  You know, in order to fix the automotive industry, you've got to fix 
the mortgage industry, and the Wall Street bailout isn't working.
  Mr. Speaker, Godspeed to you in your future years.

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