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Monday, December 08, 2008

Reports: Bailout Deal Close for Automakers

by Calculated Risk on 12/08/2008 09:13:00 PM

From the NY Times: Washington Close to Deal on Bailout for Automakers

The White House and Democratic Congressional leaders said Monday that they were close to agreeing on the terms of a $15 billion government rescue of the American automobile industry that would be directed by one or more appointees of President Bush and would impose expansive federal oversight of the auto companies.
The president’s designee would disburse the short-term emergency loans to General Motors and Chrysler ... and would directly supervise the drastic reorganization plans that the auto manufacturers have agreed to carry out in exchange for government aid.
The WSJ suggests we might own some of the automakers: U.S. Could Take Stakes in Big 3
Under the terms of the draft legislation, which continued to evolve Monday evening, the government would receive warrants for stock equivalent to at least 20% of the loans any company receives.
According to the NY Times article, Ford will not be receiving a bailout.