Skip to content

Graham Statement on Automotive Bailout

December 19, 2008

FOR IMMEDIATE RELEASE: Contact:        Wes Hickman or Kevin Bishop

December 19, 2008                                                       (202) 224-5972 / (864) 250-1417

Graham Statement on Automotive Bailout

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today made this statement on President Bush’s plan to offer $17.4 billion to General Motors and Chrysler.

Graham said:

“I’m disappointed with President Bush’s decision in many respects.

“I do not believe it’s appropriate to use the TARP (Troubled Asset Recovery Program) funds to bail out the automotive companies.  These funds were supposed to be used to stabilize financial institutions.  The TARP legislation would certainly not have passed it we had known it was going to be used for this purpose.

“The plan announced by the President today will not lead to the necessary reforms which will make these companies profitable.  The only viable solution is for them to enter Chapter 11 reorganization.

“There the companies would be able to renegotiate their labor and health costs to make them competitive in the global marketplace.  It would also allow the reorganization to be accomplished without political considerations.  Presidential or congressional restructuring will end up being a political exercise more so than a business exercise to make these companies profitable.

“If we continue down this road, I expect this will be the first of many government payments to the Big 3 automotive companies.”

####

One Comment leave one →
  1. January 3, 2009 6:50 am

    For once,I agree with “light in the loafers Lindsey”. He still needs to be defeated. Maybe Obama will make him an ambassador or something. LOL

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: