Tennessee Senator Bob Corker Redeems Himself In The Detroit Bailout

Back in early October, I wrote this post excoriating Tennessee Republican Senator Bob Corker.


Fair is fair. I believe Senator Corker's statements and efforts to stop the bailout of GM, Ford, Chrysler and the UAW have earned him a reprieve, and, even more, recognition as a standup, standout Washington legislator.

I was extremely impressed when, on Monday, Corker stated in an interview on CNBC that, while he believed the bailout plan would pass Congress, he would not be voting for it.



Last week, he challenged the viability of GM, and condemned the entire notion of allowing any of the auto makers to short cut to Washington without stopping in bankruptcy court first.



As I write this on Thursday night, December 11, the following information was available on Corker's version of the bailout plan, which even Harry Reid, Senate Majority Leader, named as the 'only plan being considered now' in the Senate,



"He got busy before dawn today, working multiple angles, in hopes of convincing Senators the current auto bailout bill won't help the industry. "I mean you couldn't make it almost more ineffective and more complicated," said Corker about the White House plan.

Corker favors an alternative plan that focuses on debt reduction, and bringing the wages and benefits of U-S auto workers in line with foreign competitors.

Senate Majority Leader Harry Reid says "if the Republicans have an alternative, let them offer that." So, this afternoon, Corker filed an amendment to the bailout bill, with his ideas. "

And this article noted,



"In one meeting, Republican Sen. Bob Corker, who has proposed his own alternative to solve the auto industry's problems, spoke briefly with Reid and Senate Banking Committee Chairman Chris Dodd.

Republicans, as well as some Democrats, are requesting that amendments be made to the legislation. Corker's proposal calls for the federal government to give loans to the auto companies with a provision that General Motors' and Chrysler's debt must be cut by two-thirds by March 15 or they must file for bankruptcy.

Corker also proposed making bondholders and unions take stock in the Big Three in place of some cash payments they're owed. Plus he wanted autoworkers to renegotiate their contracts and adjust their pay and benefits to match what foreign automakers pay their workers in the U.S."



These are the details I heard discussed on Fox News this evening. While I'm disappointed President Bush backed the House version, rather than standing with Republican members of both Chambers to back a Corker-style bill, it is very similar to what I hoped for when I wrote this recent post just a week ago today. I think Corker's ideas concerning forcing existing stakeholders, until now along for a free ride on the taxpayer's nickel, including bondholders and the UAW, must take equity instead of some cash payments, as well as forcing the latter to lower their compensation to that of Detroit's onshore competitors.



Very shrewd, because, eventually, to survive, all three Detroit auto companies will need to do that.

Regarding the House version, the article states,



"The House approved the plan late Wednesday on a vote of 237-170. It would infuse money within days into cash-starved General Motors Corp. and Chrysler LLC. Ford Motor Co., which has said it has enough cash to make it through 2009, would also be eligible for federal aid.

The plan would also create a government "car czar," to be named by President Bush to dole out loans, with the power to force the carmaker into bankruptcy next spring if they didn't cut quick deals with labor unions, creditors and others to restructure their businesses and become viable.

But the legislation has met strong opposition from many Republicans -- including Minority Leader Mitch McConnell -- who claim it does not require enough accountability from auto makers. The Republicans have plans to filibuster the legislation to prevent its passage in the U.S. Senate.

McConnell said on Thursday that the measure "isn't nearly tough enough" on struggling automakers, which employ thousands in Ohio. He said a primary weakness in the measure is with the so-called "car czar." He added that the post wouldn't have the power to force the car companies to make the tough concessions needed to ensure their survival.

On Thursday, Republican senator Tom Coburn told FOX News that he expects the bill will be defeated in the Senate. Coburn said the legislation is "only a short term fix." "



So, I'm happy to report that Corker has already begun to help lead the long Republican march out of this November's defeat, with a positive, realistic bill to temporarily aid GM, Ford, Chrysler and the UAW.