Auto Bailout Passes House, But May Get Stuck In The Senate

The Auto Bailout Bill passed House yesterday, but is expected to encounter strong Republican resistance in the Senate.

The New York Times says that the White House has failed to drum up enough support among Senate Republicans, who have enough power to kill the bill. Also added to the bill is an amendment that would require banks who are participating in TARP to disclose their lending activity.

Senator Richard C. Shelby of Alabama, the senior Republican on the banking committee, called the proposal “a travesty” and said that he would filibuster the bill. “This is an installment on a huge bailout that will come later,” he said.

Bloomberg says that millions of jobs are at stake if even one automaker fails.

Job losses would total 2.5 million to 3.5 million from an automaker failure in 2009, including 1.4 million people in industries not directly tied to manufacturing, according to a Nov. 4 report from the Center for Automotive Research, which conducts studies for government agencies and companies.

House Passes Auto Rescue Plan [NYT]
GM Time Is Short as Senate Debates, Vendors Seek Cash (Update2) [Bloomberg]
(Photo: damageinc86 )