Tuesday, October 28, 2008

Bailout Bill to Pay For Corporate Mergers

(Blog author just disgusted by the piggish greed; this "bailout/rescue" gets WORSE EVERY DAY)

"Ailing GM reported to seek federal funds to aid merger with Chrysler" by Bloomberg News | October 28, 2008

SOUTHFIELD, Mich. - General Motors Corp., the largest US automaker, has asked the Treasury Department for financial aid to help complete a merger with Cerberus Capital Management LP's Chrysler LLC, two people with knowledge of the matter said.

Treasury Secretary Henry Paulson would prefer any funding come from the $25 billion in low-interest loans approved last month for the auto industry to build more efficient vehicles, not the $700 billion banking system rescue, said the people, who asked not to be identified because the talks are private. GM executives have asked Treasury to consider taking a stake in the Detroit-based company, said one of the people, though the government is reluctant to do so.

No they are not (keep reading)!!

The Energy Department is working to release $5 billion to GM through the loan program, The Wall Street Journal reported, citing a person familiar with the matter. While Congress approved the automaker loan program on Sept. 27, money to help convert plants to build more-efficient vehicles may not be available for six to 18 months. Lawmakers didn't expect the money targeted for retooling factories would go to help in a merger. --more--"

Translation: Congress ONLY WRITES CHECKS in a DICTATORSHIP!!

How NAIVE can they be?

WASHINGTON - The Bush administration is examining a range of options for providing emergency financial help to spur a merger between General Motors and Chrysler, according to government officials.

People familiar with the discussions said the administration wanted to provide financial assistance to the deeply troubled Big Three Detroit automakers, possibly by using the Treasury Department's wide-ranging authority under the $700 billion bailout program that Congress approved this month.

Another option under consideration is to tap a $25 billion loan program that Congress just created to help the auto companies modernize their plants. A third option would involve going back to Congress, immediately after the Nov. 4 election, for authority to spend money designated specifically for the auto industry.

Where is the $$$ designated for YOU, American?

Any financial help from the government could cover some of the revamping costs of a merger, which would be substantial. The government's bailout program was originally created to rescue banks and other financial institutions, but the Treasury Department decided last week to allow some insurance companies to participate as well. --more--"

And ANY OTHER CORPORATION with it's greedy, grubby paws out!

You got SO SHAKEN DOWN on this LOOT JOB, America!!