[Congressional Record (Bound Edition), Volume 154 (2008), Part 18]
[Senate]
[Page 24443]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        AUTOMOBILE INDUSTRY LOAN

  Mr. REID. Mr. President, I can say with certainty that not one of the 
100 Members of the Senate approaches the work ahead of us this week 
with a sense of glee.
  The past American century has been defined, in no small part, by the 
manufacturing ingenuity, raw power, and limitless possibilities 
embodied by our automobile industry.
  Packard, Nash, Studebaker, Hudson, Plymouth, they are all gone. There 
are others. Ford, General Motors, and Chrysler are American icons. Yet 
we now see that all three teeter on the brink of collapse, due in no 
small part to their own ineptitude.
  Although the blame for this desperate state falls squarely on the 
shoulders of those who run the Big Three, the consequences of their 
failures could broadly impact our entire country. The jobs of millions 
of American workers are at stake, along with the financial security of 
millions of families. So while we take no satisfaction in loaning 
taxpayer money to these companies, we know it must be done.
  Today, the stock market, which will be open for a few minutes more, a 
little over an hour, today was up by more than 300 points as I walked 
into the Chamber today. Why? Because Congress is trying to save 
Detroit. We must act, not to reward the executives of the Big Three for 
their failures but to invest in the millions of Americans who could 
face the consequences of their failures.
  I strongly disagree with the Bush administration's refusal to use 
funds from the Troubled Asset Relief Program. They should have done it. 
TARP, that is what it is called. These monies, we believe, should be 
used to help the auto industry.
  Speaker Pelosi, Chairman Dodd, Congressman Frank, and I wrote the 
President last week, urging him to act because of the financial risks 
of the collapse of one or more of the Big Three. The President's 
refusal to do so requires Congress to take action.
  I wish to especially thank Senator Chris Dodd and Congressman Barney 
Frank, who worked through the weekend to come up with legislation that 
will give the automakers a chance to clean house and return to a 
responsible path toward profitability. It was literally of no personal 
benefit to Senator Dodd and Congressman Frank for doing what they did; 
it was simply the right thing to do. Their staffs have been heroic 
soldiers, in their legislative efforts, working literally around the 
clock for the last 4 or 5 days.
  And because of their efforts; that is, the two chairs and their 
valiant staffs, we have legislation before us, or soon will have, that 
will provide funds to see the auto companies through to the end of the 
first quarter of next year.
  But this is no blank check or blind hope. If the companies fail to 
develop a plan that will lead to long-term competitiveness and 
profitability, if they fail to stick to that plan, the loan can be 
recalled. That is what the intended law says. We require strong 
oversight, executive pay standards, and taxpayer protection, such as 
warrants and a prohibition on dividends, to ensure that taxpayers stand 
to benefit if and when this plan succeeds.
  There is no perfect or good answer to this problem. No solution will 
satisfy everyone and no legislation would be cause for celebration. But 
if Senators are willing to work together the next few days, we can pass 
legislation that represents good legislation, though not perfect, that 
will enable America's largest single manufacturing base to continue 
and, in the immediate future, bound forward once again to be the power 
of America's manufacturing sector.

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