Pelosi: Bankruptcy For Auto Companies Not An Option
She said that the Democratic leadership in the House and Senate would review the plans that are being submitted by the three U.S. companies Tuesday, and decide whether the steps suggested by the troubled auto makers are sufficient to merit a lifeline by the federal government.
Pelosi has been a consistent proponent of the federal government taking action to assist General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLP in the face of sagging demand for their vehicles, and the difficulty of raising operating capital through the financial markets.
Pelosi said she believed there ultimately would be a rescue of the companies. She urged the Bush Administration to use the authority granted to it by Congress in October under the financial rescue package to provide assistance to the car makers.
The administration has so far refused to do so.
Pelosi said she opposed bankruptcy as an option for the companies because the subsequent reorganization would take too long.
GM and Ford have so far submitted their plans outlining the steps they believe are necessary, and Chrysler is expected to do so later Tuesday.
Pelosi said the Government Accountability Office, the Federal Reserve and officials in the Bush Administration would review the plans.
An aide to Pelosi said a decision would be made by the end of the week whether to recall lawmakers next week to consider legislation that would provide emergency loans or other financial assistance to the companies.
-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com
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(END) Dow Jones Newswires
December 02, 2008 17:11 ET (22:11 GMT)
Publié le 02 Décembre 2008 Copyright © 2008 Dowjones
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