Auto Industry and TARP

On December 10, the House of Representatives passed the Auto Industry Financing and Restructuring Act in an effort to restore liquidity and stability to the domestic automobile industry. Among other measures, the assistance package would include bridge loans (with terms of up to 7 years) to be dispersed by a Presidentially appointed “car czar” in return for warrants and concessions from the companies.  The Senate failed to agree to pass the bill without modification. As we go to press, the White House is considering the use of TARP funds to help the automakers.  Auto Industry Financing and Restructuring Act.