Congress, White House Talking $15B Auto Bailout

The chief executives of GM, Ford and Chrysler, testified for a second day before Congress in support of their plea for a $34 billion bailout in the form of loans. "We believe this is the least costly alternative," Chrysler LLC chief executive Bob Nardelli said.

Ford Chief Executive Officer Alan Mulally, center, flanked by General Motors Chief Executive Officer...

Ford Chief Executive Officer Alan Mulally, center, flanked by General Motors Chief Executive Officer Richard Wagoner, left, and Chrysler Chief Executive Officer Robert Nardelli, testifies on Capitol Hill in Washington, Thursday, Dec. 4, 2008, before a Senate Banking Committee hearing on the auto industry bailout. (AP Photo/Gerald Herbert)

(AP)

For the day, at least, their appeals were overtaken by the severity of the job loss figures, the worst in 34 years.

Frank said repeatedly that the unemployment statistics had quieted talk of allowing one or more of the automakers to go bankrupt.

"I think it's fair to say that the jobs report today, this disastrous jobs report, has heightened the interest in doing something." With trademark wit, he added, "If we are lucky we will come out with a bill here that nobody likes, because any bill that any individual liked couldn't pass."

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Bush renewed his call for Congress to rewrite an existing $25 billion program intended to help the industry make more fuel-efficient vehicles. But the president did not explicitly foreclose other options, and Republican aides said the White House might be open to some sort of compromise.

Congressional budget analysts have said tapping the fuel-efficiency program for a broader auto bailout would net only $7.5 billion in short-term cash but amended that to say adjustments were possible that could double that amount. Pelosi and environmentalists had opposed making use of those funds. Instead, they wanted the administration to take money from a $700 billion financial industry bailout that cleared Congress last fall.

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