Results tagged “bailout” from News 24/7

NEW YORK (AP) -- Chrysler LLC requested another $5 billion from the U.S. government and said it plans to cut 3,000 jobs and eliminate three vehicle models as part of its restructuring plan submitted to the Treasury Department on Tuesday.

The automaker, which has been kept alive by the $4 billion in government loans it received in December, also said it has implemented or reached fundamental agreements on concessions with unions, dealers, suppliers and lenders to comply with the requirements of its government loans and make its labor costs competitive with those at foreign automakers' U.S. plants.

The United Auto Workers union said in a statement that it reached tentative understandings with Chrysler, General Motors Corp. and Ford Motor Co. on modifications to their 2007 contracts, but discussions were still under way about how the companies would fund union-run trust funds that will take over the companies' retiree health care obligations starting next year.

WASHINGTON (AP) -- Congress laid the foundation for President-elect Barack Obama's economic recovery plan on Thursday with remarkable speed, clearing the way for a new infusion of bailout cash for the financial industry while majority Democrats proposed spending increases and tax cuts totaling a whopping $825 billion.

Two days after Obama personally lobbied for release of $350 billion in bailout funds, the Senate narrowly turned aside a bid to block the money.

Across the Capitol, Speaker Nancy Pelosi, D-Calif. said, "Immediate job creation and then continuing job creation" were the twin goals of the separate stimulus legislation. It recommends tax cuts for businesses and individuals while pouring billions into areas such as health care, education, energy and highway construction.

AUBURN HILLS, Mich. (AP) -- Chrysler LLC's chief says the automaker has received an initial $4 billion loan from the U.S. Treasury Department.

Chief Executive Bob Nardelli said tonight in a release that the Auburn Hills, Mich.-based company's talks with the federal government about the bridge loan have been completed.

Nardelli says the initial loan will allow Chrysler to continue its restructuring and pursue "our vision to build the fuel-efficient, high-quality cars and trucks people want to buy, will enjoy driving and will want to buy again."

Chrysler is nearing the minimum level of cash -- $2.5 billion -- it needs to operate and is fending off parts suppliers and other vendors demanding cash payments on delivery.

WASHINGTON (AP) -- The Treasury Department said today that it will provide $5 billion to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., from the $700 billion bank rescue program.

The government will receive preferred shares that pay an 8 percent dividend and warrants to purchase additional shares in return for the money, the department said.

Treasury also said it will lend up to $1 billion to General Motors so that the company can purchase additional equity that GMAC is planning to offer as part of its effort to raise more capital.

The following is a statement from Rep. David Dreier (R-San Dimas) on today's House vote on the economic bailout:

For the second time this week, Congress considered a plan to unclog our banking system and unfreeze our credit markets. I know that the anger about this action is deep and real. Responsible taxpayers who pay their mortgages on time and don't spend beyond their means do not want to pay for the abuses and bad decisions of predatory lenders, Wall Street executives and irresponsible individuals. I agree completely. That is why I fought so hard for a bill that wouldn't leave the taxpayers on the hook for restoring our credit markets. I said NO to a bailout for Wall Street, no to golden parachutes for bums who caused this problem, no to a blank check for Secretary Paulson, no to taxpayer funding for partisan groups like ACORN, no to allowing judges to reduce the value of our homes, no to mandating union leaders to serve on boards of private business, no to government manipulation of the housing market. I fought for and voted YES for a plan to unclog the banking system, yes to increased protection for family and small business savings, yes to ensure that sons and daughters have access to student loans so they can get a college education, and most important of all, yes to guaranteeing that the taxpayer dollars are going to be repaid in full and made whole.

 

"It is essential that Congress act quickly - and responsibly - to help stabilize our markets and provide relief and protection for American taxpayers," said Bono Mack. "This is one of the most challenging issues that Congress has faced in recent decades, and these are very difficult times.

"Over the past week, I've received thousands of calls, emails and letters from constituents demanding that taxpayers don't foot the bill for Wall Street's mistakes. 'They made the mess; they should get themselves out,' more than one constituent told me.

Statement from Rep. Jerry Lewis (R-Redlands):

Mr. Speaker, there is a sense of urgency in the Capitol. We all know that this urgency is real: we have seen the largest U.S. bank failure in history, the demise of century-old Wall Street firms, and a nearly total freeze of our credit system.

Everyone, Republican and Democrat, is keenly aware that our economy is in dire straits. It seems increasingly clear that unless we in Congress allow the federal government to take bold steps, we are facing a serious recession or worse.

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Here's a statement from Rep. Joe Baca (D-Rialto) about today's House vote on the economic bailout, which he voted for after voting against it on Monday.

"Today, I find myself frustrated, angry and sad.  Predatory lending and greed are at the root of the current financial storm our nation is facing.  I voted against the bailout bill on Monday because I believe it did not do enough to provide direct relief to families that are facing foreclosure, and have been victimized by these practices."