House Speaker Takes The Bankruptcy Option Off The Table For The Detroit 3

House Speaker Nancy Pelosi rejected bankruptcy as a solution for domestic automakers, saying it would be “digging a hole far too deep.”

President-elect Barack Obama’s transition team is exploring a swift, prepackaged bankruptcy for automakers as a possible solution to the industry’s financial crisis, according to a person familiar with the matter.

“Rather than going to that next step, let’s hope we can solve it before that,” Pelosi said at a briefing in Washington.

Bankruptcy by the automakers would have “a devastating impact on the workers, on the economy, on the manufacturing base and on the confidence of the country,” she said.

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holmstar - 11/21/2008 4:35:48 PM

+2 Boost

this is just a comment from pelosi. Congress has not rejected bankruptcy as an option.

mini22 - 11/21/2008 5:18:51 PM

+2 Boost

The latest idea being banied about is he "prepackaged" bankruptcy option. This means that a plan for restructuring and paying back of loans is worked out before going into a chapter 11 traditional bankruptcy. This is apparantly the latest information of what the Obama administration is working out. It also allows the auto companies to divest of their obligations to the UAW so they can finally become competative.Further it is said potentially instill more confidence to the average auto consumer because it removes any question of what the future will bring. Sounds promising.

cktoo - 11/21/2008 7:25:38 PM

-1 Boost

Yeah, and you know where that divestiture of obligations is going to go...to the good ol US taxpayers. Dems have to pay off their UAW/union buddies somehow.

They need to let these co's go into traditional bankruptcy reorg and figure it out. There will be so many conditions from the Feds that they will end up making even more cars that nobody wants to buy...great solution. Then we'll be at round two with even more taxpayer money. Can you say inflation in the coming years.

pnsb24a - 11/30/2008 3:42:03 PM

+1 Boost

Pelosi is such a turd.