Congress, Big 3 Settle Bailout
CBS
Transcript
after contentious hearings and late night phone calls they've agreed in principle Congressional Democrats in the White House are working out the details of a major Auto industry bailout the price tag between 15 to17 billion in Bridge loans that's around half of what the big three Ford Chrysler and GM had asked for and there'll be significant strings attached to make sure they pay the US taxpayer back my concern quite candidly is make sure that this is not a bridge to nowhere the Breakthrough came last night in phone calls between the White House and house Speaker Nancy Pelosi she'd initially opposed the bailout but she told me this morning they agreed the money will come from a pre-existing Auto Loan program up to $25 billion meant to retool Auto plants to make more fuel efficient cars but that does not mean the car maker loans are a gift Congressional staffers are drafting legislation that will force manufacturers to show how they're spending the money and how they plan to pay it back a key point of contention in debates this week this is tax payers money we are dealing with we want to protect jobs we want to make Dawn sure we protect those dollars as well critics say all this is doing is buying time this bridge loan can't be repaid unless we give them much additional money to get them through the next couple of years and even then it's doubtful they can repay it unless we compel them to renegotiate their labor contracts and reorganize their debt I spoke to one adviser who met with both White House teams yesterday incoming and outgoing he said the plan is to keep the automakers afloat long enough to make this the next Administration Jeff Kimberly doer in Washington Kimberly thank you