03.31.09
Administration Says Bank Bailout Bill Justifies What Republican Calls ‘Power Grab’ on Automakers
White House (CNSNews.com) – The financial bailout package from last year gives the Obama administration authority to mandate a restructuring of automakers Chrysler and GM, White House Press Secretary Robert Gibbs said Monday.
GM and Chrysler, which have received $17.4 billion in federal tax dollars from the Troubled Assets Relief Program (TARP), are required to restructure their companies in order to get more money from TARP, a $700-billion plan Congress passed specifically to help financial institutions.
GM’s CEO Rick Wagoner was pushed out by the administration, though Gibbs said several times there was “no quid pro quo” requiring Wagoner’s ouster in exchange for more federal money. Further, the administration is requiring Chrysler’s merger with Fiat, an Italian car-maker, as a condition for future federal funds.
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Does this not seriously scare anyone? As Thomas Jefferson once said “A Government that is big enough to give you everything you want is also big enough to take everything you have!”
