Both car companies, who said they were in danger of filing bankruptcy before the year's end, immediately praised the White House.
$13.4-billion dollars in emergency loans are being made available to GM and Chrysler, which are in worse shape than Ford. Another $4-billion dollars could be released to Chrysler in February, but only with Congressional approval.
The agreement states that the loans could be called back in March if the companies are not viable. Treasury Secretary Henry Paulson will oversee this government intervention until the Obama Administration takes office in January.
There are conditions attached to the loans like capping executive pay and the government blocking transactions over $100-million dollars.
President Elect Obama was consulted and reportedly did not raise an objection to the plan that he is likely to revise after the inauguration.
-----------------------------------------------------------------------------------------------
abc30 News Links:
Links to other news sections on our website.
- HomePage
- Fresno Local News
- State News
- National/World News
- Entertainment News
- Business News
- Politics News
- Sports News
- Health Watch
- Consumer Watch
- Mr. Food
Breaking News Alerts:
Click Here to Sign-Up for Breaking News E-Mail Alerts
Receive Breaking News alerts in your email inbox.
Click Here to Sign-Up for Text Message Alerts
Receive Breaking News alerts right on your cell phone.
-----------------------------------------------------------------------------------------------
