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GM and Chrylser Bailout Plan might be announced Friday
Calculated Risk —
From Bloomberg: GM, Chrysler Said to Be Poised for U.S. Loans to Get Into March General Motors Corp. and Chrysler LLC would get U.S. loans to stay afloat until March under a Bush administration rescue plan that may be unveiled as soon as today ... The Treasury Department may lend to the automakers through their credit arms, GMAC LLC and Chrysler Financial, to avoid having other industrial companies line up for access to the $700 billion Troubled Asset Relief Program ... We are all banks now!
Put Chrysler Back In Christmas
Hit & Run —
It's official: General Motors Corp. and Chrysler LLC will get $13.4 billion in initial government loans to keep operating in exchange for a restructuring under a rescue plan announced by President George W. Bush.... The money will be drawn from the Troubled Asset Relief Program and the automakers will get an additional $4 billion from the fund in February for a total of $17.4 billion in assistance, according to a statement from the Bush administration. The funds would allow GM and Chrysler to keep operating until March.... In exchange for the money, the automakers must provide warrants for non-voting stock, accept ...
Obama's Doctrine of Necessity
Hit & Run —
In my column this week, I wondered what position President-elect Obama would take on President Bush's unilateral, legally unauthorized bailout of G.M. and Chrysler, given the former's criticism of his predecessor's above-the-law approach to terrorism policy. Now we know: President-elect Barack Obama endorsed the plan, calling it a "necessary step" to avoid a major blow to the economy. "The auto companies must not squander this chance to reform bad management practices and begin the long-term restructuring that is absolutely required to save this critical industry," Obama said in a ...
Obama to Give Capitalism Seizures
Hit & Run —
So here's today's big story: The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document. The government at present has the authority to seize only banks. Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from ...
