Move by White House, UAW Email Should Alarm Taxpayers

Senator John Ensign voiced serious concern after the White House announced it will use the Troubled Asset Relief Program (TARP) to lend money to the Big 3 automobile companies.  After leading efforts in the Senate to stop the White House-Democrat bailout legislation because it injected politics and failed to put the Big 3 on a path to be competitive, today he is alarmed by the precedent set for TARP and what it means for the taxpayers.   

“The plan put forward by the White House is similar to what the Senate voted against.  This action goes against the will of the most deliberative body in the world,” said Ensign. 

“Expanding TARP so that the government can pick winners and losers in any sector of the economy is troubling and should be a cause of concern for taxpayers.  Congress created TARP to prevent the financial markets from freezing.  Rather than encouraging the flow of money, the White House is now inappropriately using the funds to bailout politically handpicked industries,” said Ensign. 

“Even more troubling is that the measure put forward today can be completely erased or changed by the incoming administration.  This is about precedent because it is not written into law.  Those with an interest are already urging President-elect Barack Obama to weaken the concessions made.  They are lobbying to remove the safeguards put in place to protect the taxpayer and help restructure the Big 3 to make them competitive,” added Ensign.

“Government can and should play a role in helping the Big 3.  Along with Senator Richard Shelby, I drafted a bill that provided debtor-in-possession financing and backed the automakers warranties, both contingent on bankruptcy.  A structured bankruptcy is the best way forward because it utilizes experts instead of Washington, D.C., politics for decision-making,” Ensign concluded.

A strategy email sent out today by the United Auto Workers said, “We will be calling on President-elect Obama to indicate that he will act to drop these requirements.  We believe this can be done through executive action.”  The email continued, “But we also would like you to be sharply critical of the addition of the Corker requirements, and to call for their immediate elimination once the Obama administration takes over.”