Monday, December 8, 2008

Sherrod Brown's Response

Dear Mr. Helms:

Thank you for expressing your views on providing financial assistance to the automobile industry.

The economic downturn and the crisis in our financial markets have hurt the domestic automobile industry and its workforce. Failing to help automakers at this time of great economic uncertainty would have disastrous consequences for our state, which has more than 250,000 jobs related to the auto industry.

I have spoken with both Treasury Secretary Paulson and Commerce Secretary Gutierrez to urge the administration to use funds approved as part of the Emergency Economic Stabilization Act (EESA) to provide $25 billion in loans to the auto industry. Congress authorized this funding in September to shore up our financial system. The auto industry is woven into the fabric of our economy every bit as much as the banks that have received funds under the EESA.

Several of my colleagues and I have introduced bipartisan legislation to support the auto industry. This proposal would create a new program administered by the Secretary of Commerce that would provide bridge loans to the auto industry, with strict oversight from all relevant agencies. Before receiving an emergency loan, auto companies would have to prove that the funds will ensure their financial viability. In addition, the companies must agree to strong taxpayer protections, including limits on executive compensation, bonuses, and golden parachutes.

Along the same lines, Senate Majority Leader Reid and Speaker of the House Pelosi have asked the auto companies to submit a credible restructuring plan to Congress. Depending on the adequacy of their proposals, hearings and legislative action may follow this month.

Thank you again for contacting me. I will certainly keep your views in mind as the Senate continues to consider how we can best ensure our country’s economic future.


Sincerely,
Sherrod Brown

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