Auto Execs Testify as Legislators Try for Deal
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WASHINGTON
(Reuters) - U.S. auto executives went to Capitol Hill for a second day
on Wednesday to argue their case for $25 billion in aid as legislators
proposed changes to help a bailout pass Congressional and White House
muster.
The day's hearings, before the House Financial Services Committee,
got off to a rousing start when panel Chairman Barney Frank asked how
the government could justify a bailout for banks and insurers, but not
the automakers.
"Frankly, there seems to me to be an inherent cultural bias," Frank
said. "Aid to blue-collar employees is being judged by a standard
different than white-collar employees."
The weakened economy and global credit crisis
pushed the U.S. government into bailing out companies including insurer
American International Group Inc, investment bank Bear Stearns, and
mortgage companies Fannie Mae and Freddie Mac.
Despite pressure from many sides, the prospects of an automaker bailout getting done this week remain uncertain.
Congressional Democrats have proposed using money from the $700
billion bailout package for banks to aid the automakers, but the Bush
administration has expressed opposition. In addition, other opponents
of the bailout have argued that reorganization under bankruptcy would
be the best solution to the carmakers' problems.
But legislators have started to talk about crafting some kind of deal.
Senate Republican leader Mitch McConnell said a compromise is the
only way for legislation to become law. He proposed to tap $25 billion
of auto retooling loans already approved by Congress but not yet
disbursed by the Energy Department -- an approach supported by the
White House.
White House spokeswoman Dana Perino said the administration remains
opposed to giving automakers money from the $700 billion financial
rescue package, as some Democrats have urged. "There's no appetite for
that," she said.
Infrastructure 
