House OKs $14B Auto Bill _ but It's Still in Peril

Even among Senate Democrats, the level of support was still uncertain. In the House, 20 Democrats joined 150 Republicans in voting "no," while 32 Republicans sided with 205 Democrats to back the bill.

House Speaker Nancy Pelosi, with House Financial Services Committee Chairman Barney Frank, D-Mass.,...

House Speaker Nancy Pelosi, with House Financial Services Committee Chairman Barney Frank, D-Mass., at right, talks about a possible bailout of American automakers during a news conference on Capitol Hill in Washington, Monday, Dec. 8, 2008. (AP Photo/Susan Walsh)

(AP)

Besides providing cash for the auto companies, it would create a government "car czar," to be named by President George W. Bush to dole out the loans, with the power to take back the money and force the carmakers into bankruptcy next spring if they didn't cut quick deals with labor unions, creditors and others to restructure their businesses and become viable.

"To give up on the auto industry now would be to condemn the American economy at one of its most vulnerable periods in our economic history to a degree of further hurt," said Rep. Barney Frank, D-Mass, the Financial Services Committee chairman.

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No Deal Yet: Devil in the Details of Auto Aid

Behind the scenes, Senate Democratic and Republican leaders scrambled for a deal that would allow votes on the bill on Thursday. Some GOP senators were demanding votes on an alternative that would order the automakers to take specific actions to restructure — including steep wage cuts and debt restructuring — in return for any federal money.

Opposition from Republicans reflected the tricky task of pushing yet another federal rescue through a bailout-weary Congress, with Bush's influence on the wane.

"People realize that this bill is an incredibly weak bill (and) is the product of an administration that wants to kick the can down the road and let somebody else deal with it," said Sen. Bob Corker, R-Tenn.

The auto aid debate was replete with echoes of the tense, early-October drama surrounding the $700 billion Wall Street bailout, when a marathon set of negotiations yielded a much-celebrated deal that came apart quickly amid GOP opposition and public outrage. That bill ultimately passed after much arguing, cajoling, threatening and lobbying among lawmakers, and Bush signed it.

Before passing the auto measure Wednesday, the House voted to add language requiring that banks that are bailed out by the government report quarterly on how much they have increased or decreased lending.