Washington, Friday, December 12, 2008 -

 Following weeks of review and negotiations, the House this week passed legislation spelling out a defined, short-term loan program to help troubled US automakers get on a path of long term viability. Last night the Senate failed to come to agreement and voted down the loan proposal.

With the option of passing legislation providing automakers a bridge loan now dissolved, the White House has indicated a willingness to allow the automakers to access funds from the Troubled Asset Recovery Program (TARP), otherwise known as the Wall Street bailout funds.

Congressman Murphy responded with disapproval, "The loan program passed by the House included requirements for restructuring, worker and executive concessions, an applied interest rate, terms of repayment and many more conditions for the automakers to access the loan funds. The Wall Street package adopted in the fall was a true government giveaway with no strings attached and should not be applied to the auto industry.  If Congress cannot agree on a government loan program, why would we agree on a government handout?"

Murphy twice opposed the Wall Street bailout package, citing the lack of fundamental reforms to the market and lack of oversight on distribution of billions in taxpayer dollars.

"I am opposed to allowing the automakers to access the TARP funds and hope congressional Leadership requires it come to the floor for a vote. Allowing the Big 3 access to $700 billion dollars with no requirement to restructure or to repay the taxpayer is a giveaway that makes absolutely no business sense. Throwing money into a failing company with no requirements to restructure to become viable, with no requirements for concession from either the United Auto Workers or from the auto execs, or from any of the stakeholders that led this industry to the brink of collapse is foolhardy. I supported a loan with strict terms and conditions; I do not support a bailout.  If it’s not a loan, no deal for automakers."

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