AP: Congress, White House Near Agreement On $15B Bailout For Big 3

December 05, 2008

House Financial Services Committee Chairman Barney Frank says the new unemployment figures makes helping the beleaguered domestic auto industry even more urgent and cautioned colleagues that doing nothing would be a disaster. — House Financial Services Committee Chairman Barney Frank says the new unemployment figures makes helping the beleaguered domestic auto industry even more urgent and cautioned colleagues that doing nothing "would be a disaster."

WASHINGTON (AP) — There's been a breakthrough in getting government aid to the beleaguered U.S. auto industry.

Several officials say the White House and congressional Democrats have agreed on $15 billion in bailout loans for Detroit, less than half of what the car chiefs were seeking.

Officials in both parties say the breakthrough came after House Speaker Nancy Pelosi bowed to a demand by the president. The money would come out of an already approved fund that was supposed to go toward production of more fuel-friendly cars. Pelosi says that fund will be replenished "within a matter of weeks."

She also says in a statement that bailout legislation will include "rigorous and ongoing oversight."

The $15 billion is designed to keep GM, Ford and Chrysler humming until March, with the assumption that the new president and new Congress will revisit the issue.

This program aired on December 5, 2008. The audio for this program is not available.