In his opening comments as Chairman of the Senate Banking Committee on assistance for the U.S. auto industry, Chris Dodd blasted the lack of oversight of the bank bailout, and said that any auto industry bridge loan should include regulation of the financial industry.
He also blasted the Treasury department for not helping homeowners and spending money in an “ad hoc, arbitrary manner,” “careening from pillar to post,” without adequate controls or adequate transparency. He does not believe the Administration should have access to the rest of the TARP funds without a coherent plan.
Dodd also invited Treasury and the Fed to testify before the committee, but they declined. He has also requested that Bernake supply him with an opinion as to why the auto bridge loan money couldn’t come out of the TARP fund.
Looks like it’s going to turn into a pissing contest between Bush and the Senate Dems as to whether the money comes from the Energy Bill or the TARP funds. Since it’s been reported that GM only has 2 months of cash reserves left, it’s a pretty high stakes game of chicken (that Lehman thing went really well).
They evidently hauled a Volt down for the committee to see later today.



131 Comments












Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About Firedoglake
Jane! VP of GM was on Ed Schultz show yesterday, talking about the Volt.
Evidently Dodd doesn’t like the bill he wrote not long ago.
“Americans will do the right thing, after they have done all the wrong things.”
Where was Dodd when the bank bailout was being crafted? Oh yeah, he was busy fluffing Traitor Joe.
Well I hope this is not just talk. We all heard alot of talk before the bailout was passed, pertaining to oversight and accountability. It turned out to be just talk because there is no oversight or accountability. There is no reason why this money cannot come from the original bailout and there is no reason to delay it anymore. Paulson, that crook, did not hesitate to give his banking buddies the money as soon as they asked. Some one really has to look out for the average homeowner and I am glad at least Dodd is making a fuss over it.
And Harry Reid whines he doesn’t think he has the votes. Well, if the Big 2 1/2 collapse followed by a Depression Reid can count on the people having the rope.
Assuming facts not in evidence. It’s not at all clear that Dodd has done all the wrong things yet.
Tying regulation to the auto loan will cause yet another pissing contest (or perhaps simply intensify it) between the lame duck and the Senate.
But I don’t see Dodd following through – just a PR moment.
If Alan Mulally had the balls, he would tell Congress that the future of the Ford Mustang is off of the table. Red Ink Rick should also say that the future of the Chevy Corvette is off the table, too. They’re American institutions, killing them would make GM and Ford as soulless as Toyota. And spare me the “saving the environment” stuff, please. It’s not like Tesla is on good footing…
It’s just that I fear that the fix is in, now that Waxman is heading the energy and commerce committee now…
So tired of hearing that excuse from him. He’s leader. Go get the votes, Harry. . . or get out of the way!
Hi Jane, and THANKS for your wonderful posts.
The cross-currents in Congress are dizzying.
It’ll be interesting to see if things settle down after Obama’s sworn in, or if it’ll be even worse at least for awhile until he gains traction.
I thought I knew Dodd, kinda. I was even prepared to vote for him at one point. Now I’m glad he’s still just a senator. He’s basically a good guy, I suppose, but he has me baffled on a regular basis. I suspect what we’re observing is only the tip of an iceberg with multiple fracture lines.
Tesla is on the verge of being consumed by Fisker; which is sad, it would have been nice to have both in play. But a whole lot of Tesla’s new facilities and skunkworks have already been cannibalized off; the handwriting is on the wall for them if some white knight doesn’t help them out.
Oh, Hi eCAHN.
Mighty glad to see you, and very interested in your take on whatever the bloomin’ hecque is goin’ on.
Hi ((Adie))
The economics stuff is just so clear to me, I can barely stand to listen to it.
OTOH, the politics of the auto ind bridge loan is completely opaque to me. I’m listening so perhaps I can learn something about that.
;-> *nodding furiously*
if i hear what a good gambler he is one more time…. aye-yah-yippyarghpfft!
worse. dodd was the main organizer in the senate of the wall street bail out. he was adding hundreds of pages of bullshit and then telling us it had to be passed. and iirc, that congress had very cleverly added oversight, etc to the bill.
at the same time we were watching congress, live blogging their “debates” and votes, and yelling “bullshit” as it was obvious at that time the so-called oversight they had added was nothing more than cya – in other words a fraud.
i should go back to those threads and pull some quotes.
argh.
which is what I said in the first place, even with a coherant plan, this administration cannot possibly be part of the economic fix, they are inept and the people they entrust have proven clueless
the economic fix must come from the next administration and obama must own it, it either flies or sinks due to obama, I do not want any excuses for failure passed back to the previous administration
Is there anyone in this country who displays less leadership ability than Harry Reid?
Geez- I’ll second that.
Even if it goes down in a vote, people need to know exactly who told the American car companies to fuck off when 3 million jobs are lost.
Reid should be replaced. Pelosi too. As leaders, they’ve been absolutely ineffectual for the last two years.
Any and all of this stuff you want to comment on, I’m standing in a long line of folks proud to have you here and grateful for any ideas you’d like to share.
“just so clear to me” – i was afraid of that. even I’m beginning to get the hang of some of it.
It’s also very telling that Paul Krugman is speaking out more and more, and not hiding his feelings of worry. I know he’s plugging his book, but even that is right on target. Funny how Nobel folks seem to notice that sort of thing. I just love seeing that sweet, brilliant man getting more press and accolades.
Now, about those books you’re gonna write…. heh. I’d buy!
1,846 DAYZ AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen ratfood:
“Where was Dodd when the bank bill was being crafted?”
Good question only because it puts the light on the difference between the pre-election gun that the fascists put to the heads of our elected government and the weak shit that the bastards are swingin’ now that the election is over. Dodd and the Democrats were put in a box in October but as Dodd’s comments today atest, they’re gunna take some measure of control now and get a full handle after january 20th.
I think Dodd’s use of the auto crisis to force regulation on the financiasl industry, while keepin’ the imbalance between the financial service industry and the manufacturing sector of the economy clearly in the front of the debate is not only courageous but essential. And if One Hung Harry Reid says “there aren’t votes in the Senate” one more time, he should be taken out of leadership immediately!
KEEP THE FAITH AND PASS THE AMMUNITION, POLITICS IS WAR AND THEY NEED US GRUNTS TA FIGHT IT!!
I agree with you. And there are great deals on Cadillac Escalades. A lot of us still want Big, SAFE cars…
GWshrub!
yup
the very notion was rediculous;
“giving more of our assets to the very people that misshandled those assets in the first place”
how rediculous a plan for a number of reasons, number one being we do not want to reward ineptitude
number two, there is too much overhead even if it worked, those industries have to turn profit on those assets and therefore it gives them more profit on their mistakes when those mistakes should be costing them money
number three, the system if “lending” for our economic growth does not need any encouragement, those assets should have been invested in real products like roads, bridges, alternative fuel, cleaning the envirnment and cooling the planet
Dodd represents a state where a lot of hedge funds are domiciled, or where hedge fund managers live. Don’t expect and oversight of the financial industry from him.
I held Dodd in fairly high regard but I’m afraid his contribution to the bailout clusterf*ck and support for Joe keeping his committee chair have soured my opinion somewhat.
Ah! sigh…
What’s clear is that you don’t kill a major cyclical industry in the middle of a huge economic downturn. That’s shock doctrine on steroids. I don’t care about their plans for the future, I don’t care about their past sins, and I can’t stand all the time being wasted on those items. (Though the structure of the bridge loan is important.) My analogy is: there is a burning building with structural problems. Do you wait until the engineers have designed plans to fix the structure before you call the fire dept?
I used to think Dodd was one of the good guys until recently.
Where was he during the bailout?
http://www.npr.org/templates/s…..038;f=1001
“Having said that … I don’t think the American public will be shocked to hear that when you ask for $700 billion, demanding some accountability, transparency, some oversight of this is essential. That’s number one. Number two, we want to make sure the taxpayers are the first in line. As these assets get sold and money comes back, we want to make sure the treasury – the taxpayer – is the first in line getting relief. And thirdly, as you’ve heard people say, including the secretary of the treasury and the chairman of the Federal………………”
GM just mentioned that some material was confidential but he would be glad to share it with Shelby. It’s not a good idea to share confidential info with Shelby.
Yes, Dodd might have surmised that it wouldn’t be possible to include sufficient oversight given the climate in which the original package was passed and that they would add it later. I am hesitant to award Dems too much credit for strategy however, in light of their having been consistently outmaneuvered by the minority party since the 2006 midterms.
Futhering my analogy. Do you wait while owners of competing buildings have their say (Shelby) before calling the fire dept.
That, and Fisker’s Karma plug-in hybrid is using an engine from- wait for it- GM.
Don’t know why that link didn’t show up. Here it is.
Citizen eCAHNomics:
I think that Dodd is gunna use the auto industry crisis and bailout to cover for re-regulation of the financial industry…it will prove to be a great political move if I’m right. Even the credit industry can’t take Dodd out of his seat if an auto bailout is crafted that gives the people’s government a potential equity stake in the industry while gettin’ finanicail regulation in through the back door…that is IF IT WORKS of course.
Butchu may be right and Dodd is jest a useless, unpricipled tool of the fascists…I don’t think so but I was wrong once last year.
Yeah. Why don’t we hear this from our leaders?
Congratulations. That’s a fantastic record. I consider it a good day if I’m wrong only once in 24 hours. *g*
That’s why my teeth are ground down.
Shelby is an ass…
They’ll end up passing an auto industry bailout. What we are witnessing now is a lot of kabuki.
Did Shelby waste time with bankers asking them how they got to DC
I’m hopeful that’s the case. It’s unimaginable that they wouldn’t.
I’m trying to train myself to use the words “bridge loan” instead of “bailout.” Although the latter may come to pass, if you’re in favor of the program, for whatever reason, it pays to watch how you describe it.
Wouldn’t it make good sense for the Dems. to convince dear Senator Dodd to GIVE UP said Senate chairmanship, under the circumstances? It’s painfully obvious he’s only protecting his home base, and “forgetting” the rest of the populace.
I hate the very idea of hedge funds. Should I? Do any others feel the same?
Seriously, is there a valid reason for their existence that outweighs the
potential forserious injury to the whole economy from their dangerous games? Isn’t the legalization, encouragement, and bailout of hedges like inviting a gambling casino to set up shop in grandma’s kitchen?Surely I’m naive.
The frequency with which I am wrong appears to be linked to how often I hit the “Submit Comment” button.
Do you really think so? I’m convinced that they will let ‘em go into bankruptcy. Break the union and all. . .
So… Priorities, in every sense of the word. eh?
oh hecque, shelby probably had his staff make all the arrangements and provide the drivers.
LOL. Nothing like instant embarrassment. Keep bumping my head when I duck under my computer stand when I reread what I typed after hitting submit.
Yep.
Not qualified to speculate buy my suspicion is if you were to shut down a shady revenue stream in the morning, an alternative would be found by afternoon.
Ohh Ohh! I have company! ((((ratfood))))
some comments from various people (see links) during liveblogging the senate’s sell out on the bail out – all from oct 1, 2008 the day the senate voted and passed the TARP.
lots more where they came from, but i don’t have the heart to look at more of them – and i expect neither does anyone else.
I guess that’s a universal experience, not limited to me.
Have you noticed that there have been no Qs directed at Gettlefinger, the UAW prez? That can have 2 directly opposite implications. (1) that union concessions are viewed as sufficient or (2) that the fix is in and it’s already decided the UAW will die.
Am watching in part to get a feel for which it is.
Often listening to GOP Senators from the South, like Shelby or Inhofe, I wonder if I am living in a different country than they are.
It isn’t that I simply disagree with them, it is that their thinking is so alien to mine that it leaves me unable to make any damn sense out of their positions.
Too much at stake, they’d end up breaking a lot more than the unions. I think much of their reticence is the result of this being a lame duck session. Something will pass, though. Now that the Detroit CEOs have demonstrated the requisite obeisance, maybe sooner than later.
allied stinkbom*: How does Shelby get away with using his committee position to solicit and receive secret, proprietary company information not provided to the rest of the committee?!
Ooops. Apparently I missed some Qs of Shelby to Gettlefinger.
ditto
probably a given. i follow ya.
My prediction is based entirely on their past behavior and anti-union philosophy, not empirical evidence. Hmm. maybe that’s why I regret pushing the submit button :>
i don’t think he’s either. he’s just a human being (which means complex) who does some good things and some bad things. when i think i’m seeing the good stuff i cheer. when i think i’m seeing the not good stuff, i call bullshit.
oops. thanks dear mods for releasing my comment. i forgot once again not to put so many links in one comment.
If they woulda won the Civil War you would be living in a different country from them.
Lot of wisdom in this here blog.
lol
I learned a long time ago that if you want to discern the actual motivation behind any position taken by a government official, try to figure out who or what stands to profit from it.
I start from the assumption that I am wrong until proven otherwise. Saves time.
If the UAW dies how long do you think the 40 hour work week will last?
hmmm…. almost like our government is completely crooked and we are totally screwed….uh wait , oh no we are screwed
I haven’t begun to contemplate what would happen if the UAW were rendered impotent (they’re close to that already in de facto terms). And I refuse to. *shutting eyes, hands over ears, lalalalalala.* Oh, and *stamping feet*
oh gee. you’ve never driven a sweet, elderly, utterly dependable little corolla wagon like mine, have you?! it’s hard to explain but…. i heart that car. It has carried everything from grandma and the kids to the Christmas tree, sousaphone, 3 goats, … no partridges yet, but boxes of pears, yes, and a flock of laying hens.
truth in labeling: not all carried at the same time. ymmv
Hear! Hear!
Citizen oldgold:
“Often listening to GOP Senators from the South like Shelby or Inhofe, I wonder if I am living in a different country than they are.”
Welcome to the last battle of the American Civil War…everytime there has been an economic crisis in the US since 1877, the fascist northern bankers and their satelite state south of the Mason Dixon line have teamed up to impose a political solution that keeps a minority check on the majority in the Congress. Now that the “solid South” has been cracked, however, this will be the last time that strategy ken been used…it’s all or nuthin’ for the fascists this time.
p.s.
“…it’s the last time this strategy ken be used…”
At this point it isn’t the forty hour work week I am worried about, but the zero hour work week.
Purrrfect. LOL.
makes me sick with worry for dear friends of ours, retiree from work on the assembly line.
Depends on whether they can continue to build on their recent gains, which will depend largely on effective the Dems are (perceived as being) during the next couple years. I can easily imagine many of the states Obama won last month sliding back into the red column.
There are several GM retirees on my street. I’m worried that they’ll all have the pensions stolen.
My Polish immigrant relatives on my father’s side came up economically thru New England mill towns, and some on my mother’s side thru Ohio auto industry. Not sure if that was better back then than current choices of farm work, slaughter houses, cleaning buildings, but it seems so.
yep.. no rights or power.. no real knowledge from day to day as they wait for news from the “leaders” on all sides.
There are “great deals” because most Americans AREN’T buying those “big, safe cars”. And there would be nothing wrong about making an electric “big, safe car”. And if Detroit figured out how to make a fuel-efficient model of the Corvette or Mustang the world would wear a path to their door. Latest I heard was that electric cars got up to amazing RPM’s and MPH in a matter of seconds. Quietly…of course…so you’d have to pump the old-school sounds over the speakers.
Schumer sez workers have taken more of the hit. That’s encouraging but of course we must wait to see how he votes on the actual package.
I think pensions are rapidly becoming extinct. Employers don’t particularly like having to pay for work currently being done, they despise having to pay people who are no longer producing.
In a recent issue of Vanity Fair to give people an idea of what 3 trillion dollars means, they said if you spend 100 million per day for 365 days a year, it would take over eight years to spend it. If you reduced the spending to 1 million a day, the necessary time goes to over 100 years. I can get the month and page if you want it. I haven’t done the math, but it should be right.
3 trillion may be enough to give every household in the US 1 million to do with as they please. They pay off their mortgages which takes care of the banks, leaves them with unencumbered property, with enough left over to buy a new car. I don’t have the numbers, but I understand the amount spent for Katrina relief if divided amongst New Orleans households might come to 250,000. each, enough to rebuild and lord knows what else. Why not all of us being rich instead of just the bankers?
One off topic thing. Looks like the actors are going out on strike. Anyone have any ideas on how we might organize an online protest with the idea of no one going to the movies while the strike is on?
In the second oil crisis (1980) we figured out that you’d never recoup in lower gasoline costs the price difference between buying a cheap gas guzzler and an expensive fuel efficient car. I don’t know what the economics is today.
I thought that GM had a well funded retirement fund that had been fairly prudently managed for retirees?
heh heh. like vacuum cleaners. can’t sell em, no matter how powerful and efficient, unless they’re loud enough to “sound powerful”.
Sorry. Stubborn gene makes me refuse that argument. We COULD adapt, if we had the chance. Honest, Mr. Executive Prognosticator.
thanks to all for the liveblogging and discussion (and especially jane for her posts) – i’m listening but have too many other things going on to participate very much.
I don’t know. I hope you’re right.
ya ought to just print this out and fax it to dodd, reid, et al.
sheesh.
I think you’re right, so far. I’m not sure about that. But I believe GM washed their hands of it and it’s now run by the union. Thus maybe pits young worker vs older retiree. Both sides stuck with the system, but only one side can vote on contracts. If I understood correctly, retirees no longer have any vote.
Someone please correct me on this. I probably have some or all details wrong, sigh, per usual.
My uncle is a ford retiree, and a good quarter or more of my patients at my pharmaacy are actually GM retirees. I’d hate for them to lose both their pensions AND their rightly earned benefits. The company failed them, they did NOT fail the company in this deal.
I may not be in the industry, but i see the faces of the workers in all the associated businesses all the time, growing up here in michigan.
ahem, there IS “spotlight” sittin’ there on everyone’s screen. Just scroll up to the section between main post and the start of comments. ;->
Citizen ratfood:
“I can easily imagine many of the states Obama won last month sliding back into the red column.”
Not as long as Obama is in office…there has been a very real demographic change in the old South and in the emerging West (especially with the crisis in the Mormon political machine) and by the time Obama solidifies the new Democratic majority in the end of 2012 there will either be a “new” conservative Republican Party or there won’t be a Republican Party at all.
Obama doesn’t do anything without a long view of history and the future.
I hope so.
Now THERE’s a bizarre new concept to get used to. I’m more than ready.
In case you hadn’t noticed, prices for gas in my area have fallen to $1.59…people can afford Escalades again when the credit crunch loosens. No one wants these little tin cars which run on batteries. Period.
If I heard correctly, Corker just announced that whoever in the W admin who OKs applications under the $25 billion retooling fund, had turned down every single application received to date. None of the execs were aware of that.
I think it was the health insurance that the union was supposed to take over as it is funded. Retirement fund of $90B is fully funded on an accounting basis but according to Benefit Guaranty Corp it is $31B short.
Phew!!!
We’re gonna miss this exceptional administration. /s
Amazing.
It sure has been fun watching these CEO’s grovel. If only Dodd would make them duck walk in front of the camera and talk like pirates.
Aaaargh!
My DIL drives a 400h Lexus which runs on batteries at lower speeds and when prudently accelerating. She loves it!
Thank you for following up on that. I just didn’t know, and that’s one bit of subject matter we just don’t get into with our neighbors. Too painful and sensitive a subject, and too close a friendship to dare heighten their anxiety just to satisfy our curiosity.
The health insurance alone, though, could be a huge blow if things fall apart.
LOL. If they can make Detroit do that, why not Bush Cheney and Rove?
arggh!
Corker is enjoying hisself too much, I think.
OK, I was ditched on an earlier thread…where is everyone hanging out now???
Or Wall Street Bankers
I’m of the opinion that Toyota left fun-to-drive at the door when they killed the MKIV Supra in 1998. The Celica and MR2 Spyder dying on the vine a few years later didn’t help, either…
How long do you ’spect these prices will last? Not to mention the fossil fuels that power these behemoths? They’re jerking you around. Lower the prices until they sell more monster trucks with big wheels. Then pull the rug out from you and raise the prices back to $4.
I don’t mind driving a hybrid and will not mind any other improvements that are made. Then again I’m a pretty secure guy.
I’m certain she doesn’t do long distance driving (I have had to drive 1000 miles in a day) and do freeway driving in which quick acceleration around trucks is necessary. Right now, my 3/4 ton 1988 Chevy Van gives more power than anything except the new Escalades…
The list goes on and on.
This Corker guy needs to put a cork in it! The workers have put their shoulder to the wheel.
I don’t buy it. I think we need something like the Pickens Plan which even Nader liked. Drill now for the immediate oil needs (some of the new oil can come online in a year, not 10), go to natural gas and then fuel cell technology. Battery technology is a long way away because of the inherent limitations of the storage recharge systems…
I’ve not been watching bidness gurus much this week. But earlier, it was astounding how full of bluster and self-serving, brutish i.n.d.i.g.n.i.t.y those bozos could summon. I guess that’s what it takes to be a COO, CEO, Press Secy, spokesnoodle et al. these days.
Not becoming. Not a-tall a-tall. Creepy-crudite-ish, as it were. There’s not enuf onion dip in the world to make that palatable.
I thought Gettleman did an OK job of trying to guilt Corker.
I have no idea. I’m so lazy, I usually just hang around until the zamboni comes along to smooth everthang over….
Well, well, well, Casey’s defending organized labor.
okay. i’ll take your word for it. my lil’ wagon is a ‘91, and still perking along, passing every emissions test with flying colors, etc.
i can’t keep it forever, but when we part company I’ll miss it. ;->
0 to 60 in 7.5 is quick enough unless you want to take it to the dragstrip
I miss my 93 Geo Metro. It’d still be running if a pothole hadn’t ate it and totally bent the frame beyond all repair. It was humming along at almost 190K at that point, and i was getting 45mpg on the highway, closer to 30mpg in the city. *sighs* My new car gets me 30mpg highway, but the city miles kick my ass gas wise. I held out for as good as i could get in my meager wages, at that.
I am a (not so young)photographer and when I began the flash units I used needed a battery pack I strapped over my shoulder and weighed 10+ lbs. Today I use 4 AA NiMh batteries that provide many more flashes, weigh a few ounces, and can be recharged a thousand times without developing a memory. So I don’t buy that there are inherent limitations to battery power.
I’m surely no engineer or scientist, but it seems common sense to move away quickly from a fossil fuel that is limited and fouls the air.
Maybe there is some compromise between “drill, baby, drill” and the twinkie power advocates?
Eli is upstairs.
Yeah. even we non-mechanically-inclined (just me, not labeling anyone else)
find ourselves falling in “love”, in my case – the sheer rock-solid reliability, and adaptability of our little car, plus it’s perky-feeling gear ratio (my sonny says), and the way it allowed us to avoid needing a truck. You should have seen us heading to the county fair in that lil’ thing when the “kids” were young. It has earned its keep many times over. Now that our animals are all gone, it delivers the stray couch or desk, boxes & boxes of books and sundries, recycling et al.,,
AND it even serves as the family billboard, with catchy ACLU ads, Wilderness Society & Conservancy, PBS & Music Conservatory window stickers, “Bring em Home” yellow ribbon. I suspect it has a certain, don’t-tread-on-me, but DO-support-worthy-causes rep around the area. It’s also almost guaranteed not to be stolen, heh.
It’s an hour later and Corker is still going on and on while Rome burns.
Corker wants the Union to abandon all their gains of the last century. The Conservatives will not be happy to the USA achieves Free & Fair Trade. Unfortunately, their conception of Fair Trade involves driving down American wages until we achive parity with Chionese Labor.
The only remotely fun thing Toyota has right now is the Lexus IS, IMHO…
Oops! You caught me there. I have no doubt at all you probably are correct. Cars are not my focus. I want wheels that will get me and what I have to carry to my destination and back home, safely and efficiently. I’m not a car buff. My elderly little Toy. serves well for such limited expectations.
Speaking of “remotely fun” things, does Ferrari at long last have a hot hot car that doesn’t stall at every stoplight? Or, was that just a nasty, unfair rumor?
[apologies; some of my best friends are car buffs.]
P.e.a.c.e. Bro. We live in a semi free society. ;->
Dodd is absolutely correct about needing financial regulation and the lack of oversight of the bailouts. But why the heck didn’t he and the knuckledraggers in the senate think of this before they voted for the bailout? Particularly when 85% of their constituents and nearly all economists warned them that the bail-out was a mistake?
And why the heck did Obama select Geithner, when Geithner has gone right along with Paulson in promoting this insane bail-out?
The dimwittery of the Dem party establishment is a constant source of amazement to me.
Your friends don’t know how to operate a clutch properly…