Bush Throws to Detroit $17.4 Billion Lifeline. NYTimes, December 19, 2008 "President Bush announced $13.4 billion in emergency loans on Friday to prevent the collapse of General Motors and Chrysler, and said another $4 billion would be available for the hobbled automakers in February. The entire bailout is conditioned on the companies undertaking sweeping reorganizations to show that they can return to profitability... House Speaker Nancy Pelosi said the White House package 'unfortunately singles out workers and clearly puts them at a disadvantage before negotiations have even begun'... The loan deal requires the companies to quickly reduce their debt by two-thirds, mostly through debt-for-equity swaps, and to reach an agreement with the United Automobile Workers union to cut wages and benefits so they are competitive with those of employees of foreign-based automakers in the United States... The money to aid the automakers will come from the Treasury's $700 billion financial stabilization fund."
2008-12-18
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