S10790 CONGRESSIONAL RECORD — SENATE December 8, 2008 

I strongly disagree with the Bush administration’s refusal to use funds 

from the Troubled Asset Relief Program. They should have done it. TARP, 

that is what it is called. These monies, 

we believe, should be used to help the 

auto industry. 

Speaker PELOSI, Chairman DODD, 

Congressman FRANK, and I wrote the 

President last week, urging him to act 

because of the financial risks of the 

collapse of one or more of the Big 

Three. The President’s refusal to do so 

requires Congress to take action. 

I wish to especially thank Senator 

CHRIS DODD and Congressman BARNEY

FRANK, who worked through the weekend to come up with legislation that 

will give the automakers a chance to 

clean house and return to a responsible 

path toward profitability. It was literally of no personal benefit to Senator 

DODD and Congressman FRANK for 

doing what they did; it was simply the 

right thing to do. Their staffs have 

been heroic soldiers, in their legislative efforts, working literally around 

the clock for the last 4 or 5 days. 

And because of their efforts; that is, 

the two chairs and their valiant staffs, 

we have legislation before us, or soon 

will have, that will provide funds to see 

the auto companies through to the end 

of the first quarter of next year. 

But this is no blank check or blind 

hope. If the companies fail to develop a 

plan that will lead to long-term competitiveness and profitability, if they 

fail to stick to that plan, the loan can 

be recalled. That is what the intended 

law says. We require strong oversight, 

executive pay standards, and taxpayer 

protection, such as warrants and a prohibition on dividends, to ensure that 

taxpayers stand to benefit if and when 

this plan succeeds. 

There is no perfect or good answer to 

this problem. No solution will satisfy 

everyone and no legislation would be 

cause for celebration. But if Senators 

are willing to work together the next 

few days, we can pass legislation that 

represents good legislation, though not 

perfect, that will enable America’s 

largest single manufacturing base to 

continue and, in the immediate future, 

bound forward once again to be the 

power of America’s manufacturing sector. 

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RECOGNITION OF THE 

REPUBLICAN LEADER 

The ACTING PRESIDENT pro tempore. The Republican leader is recognized. 

f 

AUTOMOBILE INDUSTRY HELP 

Mr. MCCONNELL. Mr. President, 

Congress returns this week at a time of 

grave concern about the state of our 

Nation’s economy. Americans are worried about the credit markets that 

serve as the lifeblood of our Main 

Street economy. They are worried 

about the broader financial industry. 

And now they are worried about the 

possibility of another major convulsion 

coming from the auto industry, an important source of jobs throughout 

America, including my own State of 

Kentucky. 

As we consider new legislation this 

week, we must first ensure that we do 

no harm to taxpayers later in our efforts to help any one particular industry now. That is why Republicans insist that any proposal aimed at helping 

the auto industry include a firm commitment on its part to significant and 

fundamental reform. Troubled automakers cannot expect taxpayer help 

without a serious commitment to 

change their ways permanently. 

Any assistance from Congress would 

hold the auto industry accountable to 

essential reforms from day one. And it 

would include enforcement capabilities, including strict, immediate accountability and oversight. Automakers should not expect any new appropriations. Congress will not draw on 

funds that have already been designated to stabilize the entire economy 

in order to help one sector of it. 

As Congress works to help stabilize 

the broader economy, we cannot expose 

the taxpayers to new burdens without 

the promise of avoiding in the future 

the same mistakes that created these 

problems in the first place. This is the 

principle that should guide all of us in 

this week’s negotiations. I am confident it will guide Republicans. 

f 

RESERVATION OF LEADER TIME 

The ACTING PRESIDENT pro tempore. Under the previous order, the 

leadership time is reserved. 

f 

MORNING BUSINESS 

The ACTING PRESIDENT pro tempore. Under the previous order, the 

Senate will proceed to a period of 

morning business, with Senators permitted to speak for up to 10 minutes 

each. 

Mr. REID. Mr. President, I suggest 

the absence of a quorum. 

The ACTING PRESIDENT pro tempore. The clerk will call the roll. 

The legislative clerk proceeded to 

call the roll. 

Mr. BOND. Mr. President, I ask unanimous consent that the order for the 

quorum call be rescinded. 

The ACTING PRESIDENT pro tempore. The Senator from Missouri is recognized. 

f 

CRISIS IN AUTO INDUSTRY 

Mr. BOND. Mr. President, I rise 

today to speak on the issues facing the 

crisis in the auto industry as well as 

the Department of the Treasury’s 

Troubled Asset Relief Program or 

TARP. 

As the economy continues its severe 

downturn, American families across 

the country face challenges on a level 

not experienced for decades. With hundreds of thousands of jobs being lost 

each month, small businesses and millions of Americans struggling to meet 

everyday needs, the Federal Government is being challenged to come up 

with new solutions. We are clearly in a 

unique time as we are experiencing an 

economic downturn unparalleled since 

the Great Depression. 

Our Government has already taken a 

number of emergency actions to prevent an economic calamity but new 

crises continue to develop. The latest 

and, of course, we think right now the 

most noticeable crisis is the potential 

collapse of the domestic auto industry. 

Unlike many other industries, the 

auto industry touches millions of jobs 

and many manufacturing and service 

industries throughout the Nation. We 

are not talking only about autoworkers in assembly plants, we are also 

talking about auto suppliers, dealerships, repair shops, steel, glass, and 

plastic industries. 

These auto-related jobs are not just 

in big cities such as Detroit and Cleveland, St. Louis, or Kansas City, those 

jobs support families in small- and medium-sized communities across rural 

America in places in my home State 

such as Dexter, Fenton, Mexico, Riverside, Maryville, Moberly, Versailles, 

and Joplin. I have been meeting with 

many of these people in the last few 

weeks. 

But despite the real need for temporary emergency assistance to save 

jobs in Missouri and across the country, I do not support a taxpayer-funded 

blank check that will prop up failed 

business models without getting the 

changes that are vitally needed. 

It is a disservice to the American 

taxpayer to throw good money after 

bad, when these big businesses contributed to their problems. I share and understand the ‘‘bailout fatigue’’ of most 

taxpayers, a lot of folks in my State, 

and we are troubled by the Government 

intervention in the private market. 

But I think it is important to note the 

failures of the auto companies, like the 

financial markets, are more than just a 

failure of the markets and the industry. It also occurred due to Government actions, some of which were 

pushed by the Congress. 

Congress helped bring about $4-a-gallon gasoline that pushed car sales down 

before the credit crisis—in which we 

also had a hand—shut off car loans. 

Our country, however, is facing a 

unique economic emergency and now is 

not the time to point fingers of blame. 

It is a time to examine carefully all 

policy options, including the option of 

doing nothing. But doing nothing for 

the auto industry would mean allowing 

them to go into bankruptcy. Unfortunately, bankruptcy takes several 

years, and many consumers would not 

purchase a car or a truck from a company in bankruptcy. In fact, recent research studies suggest that 20 to 30 percent of shoppers avoided purchasing domestic autos in October due to the 

speculation of bankruptcy. In other 


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