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Sessions Comments On Bush Plan To Assist Automakers

Friday, December 19, 2008

WASHINGTON—U.S. Sen. Jeff Sessions (R-AL) made the following comments today regarding President Bush’s plan to use funds from the Troubled Asset Relief Program to assist failing automakers:

“The president’s decision to allocate financial bailout funds to private automobile manufacturers represents a further entanglement of the federal government in the free market.  I am disappointed that the president has apparently yielded to the temptation of substituting the whims of politicians for the wisdom of the free market.  History teaches us that doing so rarely achieves the desired outcome. 

“The president’s plan appears similar to the one correctly rejected by the Senate last week, which, after careful study, was determined to be too weak to be successful.  Experts and economists widely agree that, absent major cost containment and an effective restructuring plan, no amount of financial assistance will ultimately be successful.

“Unfortunately, the president’s proposal enables the involved parties to continue to avoid some of the tough choices necessary to become competitive.

“By not conditioning the assistance to the kind of open, sworn process provided for under Chapter 11 of the bankruptcy code, we will be implementing another misguided plan through which colossal sums of taxpayer’s money will be doled out without even minimum accountability.  The regular legal process for companies in financial trouble is for them to seek protection in bankruptcy, where evidence will be taken, including certified financial statements and testimony under oath.  During this process, the true condition of the companies can be ascertained and government monies provided would be given the highest priority for repayment as a debtor-in-possession.  Under the administration’s plan, money will be distributed without proper verification and will be inadequately secured. 

“I fear that the plan announced today will not work and amounts to simply kicking the can down the road.”















December 2008 News Releases

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