Dec. 8: Wall Street Extends Rally to 2nd Session
Associated Press
Transcript
with confidence Rising on Wall Street stocks shot up more than 3% Monday the second advance in as many sessions investors got a jolt of optimism on president-elect Barack Obama's plans to increase infrastructure spending to help lift the economy back to health but analysts feel there are plenty of questions left on its makeup and how it would boost the economy right now I think it's long on optimism but short on specifics I think we have to know a little bit more is it truly a 500 billion to 700 billion program will it go directly toward infrastructure expenditures will it be uh primarily for uh unemployment benefits being extended you know basically where is this money going to go and will it truly happen investors also grew more confident as the government neared a deal expected to Total about $15 billion to help the nation's three biggest automakers escape from collapse the Dow Jones Industrial Average Rose 299 points to close at 8934 the Blue Chip index which added 259 points on Friday is now up for the month of December broader indexes also Rose the standard and pores 500 Index Advanced 34 points to 910 and the NASDAQ Composite jumped 62 points to 1572 Mark hamri the Associated Press
Big 3 Bailout Imminent
CBS
Transcript
it looks like the big three automakers will get help from Congress but not as much as they hoped and not without strings attached CBS News correspondent Thalia assur us is on Capitol Hill Thalia good morning good morning Maggie White House and Congressional negotiators worked all through through the weekend trying down to nail down the terms of a deal by all accounts they are close very close the economic impact would be terrible if any of the big three go under and there's that recognition I think that has grown across the country and in Washington the consensus may have grown but the bailout package is a lot smaller than what the big three came looking for last week good morning everyone instead of the $34 billion they want they'll have to make doe with less than half about 15 billion and there will be conditions attached likely elements a carar appointed to oversee the bailout proof of progress for any further cash infusions More Union concessions and potentially changes at the top GM's leadership was singled out on cbs's Face the Nation so what you're saying about GM is that Rick Wagner the chairman has to go I I I think he has to move on CBS News has learned the White House is prepared to sign a deal and Sunday President elect Barack Obama weighed in signaling he would back a bailout that's tough on the automakers we have to have an auto industry that understands uh they can't keep on doing uh things the same way still with no assurances that any rescue scheme would succeed I fear the first installment of billions to come the passage of the bill is not a sure thing I think Congress is tired of being stampeded they're tired of being threatened that we've got to pass something in any uh just a few days of voting of consideration we are told that we will see legislation today and you know there are millions of jobs at stake so yesterday at one of Detroit's largest churches Auto Workers along with SUVs parked at the altar we're praying for this bailout Harry all right Thalia sh Washington with us this morning thank you very much joining us now is g governor Jennifer granholm of the state of Michigan Governor good morning good morning Harry is prayer the only thing that's going to help the Auto industry we saw the pictures from Detroit yesterday well certainly prayer but the the loan package will be a significant assist and the Auto industry as uh people may have noted in the Wall Street Journal today there's a front page a full page ad by General Motors saying they will accept whatever conditions are placed upon them but the importance to this country of having a manufacturing industry and an auto industry cannot be overstated Chris DOD was on uh on with Bob sheer yesterday says GM's CEO Rick Wagner has to go would you agree or disagree with that well I think Rick Wagner has said and others have said this is bigger than one person he's going to do whatever it takes to make sure that this industry survives but if General Motors doesn't get this loan by the end of this month it is game over and when you think about what that means you think about why other countries are helping their Auto industry right now because of this this financial meltdown we do not want to give up our ability as a nation to be energy independent and it's the electric vehicle that's going to take us there the battery that's in that vehicle we cannot allow other regions of the world to have that technology and not us have it they say at GM that they're going to have to close their doors unless they get this money bankruptcy protection is not an option for them do you really believe it's true that by January 1 unless they get this money from the federal government it is literally game over well that's what they have said and bankruptcy uh certainly reorganization type of bankruptcy when you think about that uh consumers will not purchase a car from a bankrupt Auto Company 80% of consumers have said that they would not because it's the biggest consumer purchase that they make they're not going to trust that they will have access to parts to warranty Etc this is three million jobs this is more than just the Auto industry it's those suppliers who feed into that industry all across the nation it's the steel industry it's the textile industry it's the Plastics industry it's the microchip industry it's the railroad industry this is the backbone of manufacturing we cannot lose this very important sector of our economy sounds like desperate times there Governor thank you very very much for your time this morning we do appreciate it you bet all [Music] right
Laid Off And Not Leaving
CBS
Transcript
as the economy worsens factory workers in Chicago are taking a stand on Friday their plant was closed so 200 workers from Republic windows and doors are now staging a sidim they were let go on just three days notice and they're demanding severance and vacation pay joining us this morning Leia freed and organizer with the United Electrical Workers and Illinois congressman Lewis coot the fs good morning to you both good morning Leia let me begin with you and talk about all those workers behind you two days so far in the snow have they had enough well actually we're on day four of our very peaceful successful occupation of the factory so they're inside on the factory floor and frankly yeah the reason they're here is because they've got nothing left to lose they were told on Tuesday last week that they would be out of a job on Friday penniless on the street no vacation pay no severance pay Oh to them under the WARN Act so people have been very strong very United and they're not going anywhere until they win justice the company says that it had to close because bank of america cancelled their line of credit i take it you're not buying that oh no bank of america definitely is it I'm sure you're not satisfied with that explanation no not well this is the same bank that got 25 billion dollars and in bailout funds so I think we definitely need to hold them accountable for what they do to our economy and and whether or not they're investing in jobs whether or not they're keeping people employed so we're we're fighting hard to make sure that Bank of America is is held accountable for what they're doing and and the workers feel very strongly that that they need to do the right thing here bank of america says the company should be held accountable not them because this was not a good loan well frankly right now what matters is that Bank of America owns millions of dollars worth of assets of this company and these workers are owed their vacation pay and if this factory continues to stay close than they're owed 60 days pay under the WARN Act records that's just not right to throw people out on the street with nothing representative Gutierrez how will you get involved in this we've organized the meeting today between the union representatives the company bank of america and my office at four o'clock this afternoon we want to end the finger-pointing whether it's the company or Bank of America let's open up the book the company has agreed to come and sign a release a waiver so that confidentiality wherever so we can look at the books so you can see where the money is that look we you guys are reporting on what we did for the financial industry seven hundred billion dollars another fifteen to twenty billion dollars for the automobile industry who's standing up for workers we think the federal government has to make sure that the WARN Act which says that these workers are do 60 days of pay and health benefits has to be enforced let's make sure the federal government does its job with these workers not with just those on Wall Street but those really this is Main Street here let's make sure that we make sure that in the end the federal government the laws that are on the book to protect these workers are respected and if not Leia how long will they stay as long as it takes they're not given up their incredibly strong and United and we should understand these workers are simply protecting their work their labor there are hundreds of thousands of dollars worth of windows in this company which are ready to be delivered they're going to be delivered normally to a normal cycle these workers work to manufacture they're not getting paid all they're simply doing is placing a lien for their work and saying let's respect the law they worked real hard we have workers here 34 years they made this company the success that it is and on the eve of Christmas they shouldn't simply be thrown out on the street and if the federal government can intervene to protect these workers than I think we're failing in our main obligation congressman luis Gutierrez Leia freed thank you both for joining us thank you
Praying For The Big Three
CBS
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[Applause] [Music] well I'm preaching a message on today entitled a hybrid hope and I thought that we' would have some hybrid vehicles to help illustrate the message one thing for sure all eyes will be focused on the platform we're asking everybody to stay prayerful this week and let's pray that God touches the heart of Congress to vote this Aid up guests that we have here have been elected by membership there several folk here that are union members we have Sal members well as well that are Constitution ventage when the people speak they looked amongst them and found some great leaders we
Car Czar To Oversee Bailout?
CBS
Transcript
today on capitol hill lawmakers were trying to do something congress doesn't usually do very well move at lightning speed to negotiate the fine points of a complex plan one to shore up the auto industry for at least the next few weeks as the clock ticks toward bankruptcy a draft of the plan calls for gm and chrysler and ford if needed to borrow up to 15 billion dollars they would have to develop long-term restructuring plans the plans would be evaluated every 45 days by a car czar and or a board of advisors appointed by the president the automakers would have to submit a detailed restructuring plan to congress by march 31st christopher dodd heads up the senate banking committee and is a key negotiator if congress passes something this week this is a band-aid measure to get us through the short term this is not the bailout the industry was seeking of 34 billion dollars plus there's no appetite for that here with all due respect these are self-created problems but dodd says if the automaker's long-term plans look good in the spring it'll give congress the confidence to commit more tax dollars as for taxpayer protections there would be oversight and access to company records by the gao and inspector general limits on how much pay and bonuses auto executives get and something called super seniority which means taxpayers get paid back before anybody else and by the way the companies would have to get rid of their fancy passenger jets we're going to create by march 31 we hope a profitable and viable automobile industry for this country if that doesn't sound ambitious enough how about this the first evaluation of the company's progress toward developing a long-term restructuring plan is due in just three weeks by the karzar and the presidential appointees who haven't even been chosen yet katie and cheryl is there anything at this point that could still hold up this deal one big thing is support from the white house right now the white house hasn't signed off on the deal the negotiating is going on president bush has to be convinced that this isn't throwing good money after bad and that sales job will probably be going on into the night all right cheryl atkinson on capitol hill tonight cheryl thank you
Main Street Fights Back
CBS
Transcript
in the parking lot of the Republic windows and doors Factory in Chicago it was all quiet but a closer look showed employees working three shifts not doing their jobs but protesting and we aren't going anywhere we are committed it's time for the little man to stand up last Tuesday 300 workers were given three days notice that the company was folding which it did on Friday without paying them any Severance so they took over the place what we really want here is to save the jobs because this 300 people without jobs Vincente Rangel has put in 15 years and was earning $19 an hour you start thinking about your payments your bills your mortgage your rent the sit in has grabbed the attention of politicians including the president-elect and others who believe it exemplifies an imbalance between a Wall Street that gets government help and a main street that gets the shaft what do we want Justice when do we want it Illinois governor rod bovich says he's headed to court for the workers because federal law mandates that they be paid for unused vacation time they're also due either 60 days notice or pay for that time but somehow these workers always end up on the bottom it's wrong aside from the company managers who've essentially disappeared the workers's anger is directed at the Bank of America which cut off Republic's line of credit preventing it from paying its employees so the state of Illinois has now suspended ended all business with the bank which got a $25 billion share of the recent government Aid package the taxpayers who do all the work in our country have been already asked to bail out these big Banks then we expect those Banks to bail out businesses like this to keep them afloat and keep these workers working late tonight the Bank of America released a statement saying these workers behind me do indeed deserve to be paid but it's not the bank's problem it's the employers and they said it was unfort that the company was unable to reverse its declining circumstances Katie Dean Reynolds reporting tonight from Chicago