This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

GM, Ford Wrap Up Plea Before Congress

Rep. Paul Kanjorski, D-Pa., said Congress has little appetite to provide $34 billion, and pushed to provide enough funding to keep GM and Chrysler operating March 31, enough time to work out viable business plans with stakeholders including the United Auto Workers, suppliers and creditors. He suggested a course that would force restructuring outside of bankruptcy.

"They have to restructure," Kanjorski said, urging: "Impose a super master on the board (who) can impose a settlement. If creditors aren't willing to take a haircut, impose a haircut." He added: "I can't understand why we're arguing what pot this is coming out of," but that is the primary issue separating Democrats and Republicans.

The Bush Administration want to tap $25 billion set aside earlier this year by the Energy Department to help automakers retool plants to build more fuel-efficient vehicles. Other potential sources include the Troubled Asset Relief Program and a new Congressional allocation. On Friday, Senate Majority Leader Mitch McConnell, R.-Ky., told the Louisville Courier-Journal that he has "not decided yet" what course he prefers.

"However the short-term funding comes is up to the Congress," said GM CEO Rick Wagoner. But he said the company is seeking about $8 billion from the Energy Department, and "we would hope it would be replenished" if it became a source of immediate financing.

Wagoner also responded once again to the suggestion Chapter 11 bankruptcy would provide a suitable forum to reorganize. He noted that GM's pension plans are funded, and the UAW has agreed to stretch out payments for retiree health benefits. "Bankruptcy doesn't help a lot on these issues, and it will cream revenues," he said.

As the hearing concluded, Frank offered an observation. "One of the things we have learned is averting disaster is no basis for a political campaign," he said. "If you do something good, people are happy. But avoiding something bad, people are not happy."

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
F $15.90 0.00%
GM $35.78 0.00%
GOOG $555.37 0.00%
FB $81.91 0.00%
YHOO $44.36 0.00%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs