Rachel Maddow talks to Barney Frank about the new deal the Democrats have agreed on which they hope will help rescue the Auto Industry for the time being. Barney said that they will not use money from the existing TARP agreement because of a threatened Bush veto. The Democratic Congress have agreed to use the 25 billion that Bush is willing to part with:
He wants Congress to allow car makers to use $25B in energy funds to shore up finances.
Frank said that since Bush is still the president, (even if he's a lame duck) he will veto any other measure so the congressional Democrats feel that this money will help keep the Auto Industry afloat until Obama takes office with a much larger Senate majority to work with. This way they will be able to beat back any Republican filibustering and make any necessary changes they will need to do in the future which includes refunding the money set aside for the production of environmentally friendlier cars.
In a subsequent statement, she added that the billions originally ticketed for development of more environmentally friendly cars would be repaid "within a matter of weeks." Democrats said her hope was to include the funds in an economic recovery bill that lawmakers are expected to prepare for President-elect Barack Obama's signature shortly after he takes office.
Officials in both parties also said the legislation would include creation of a trustee or group of industry overseers to make sure the bailout funds were used by General Motors Corp., Ford Motor Co. and Chrysler LLC for their intended purpose. The funds are designed to last until March, giving the incoming Obama administration and the new Congress time to consider the issue anew