So Will Detroit Get The Money Or Not?

Members of Congress wanted Detroit's Big Three automakers to redo their homework before they resumed begging for a government bailout today. So how'd they do?

It doesn't matter. If a Senate Banking Committee on the matter Thursday was any indication, the failure of America's automakers poses such a danger to the economy that lawmakers seem less focused at this point on whether they'll give the automakers a bailout, and more so on how they'll do it.

"We're not going to leave town without trying," committee chairman Sen. Christopher Dodd, D-Conn., said of their efforts to provide funding for General Motors (nyse: GM - news - people ), Ford Motor (nyse: F - news - people ) and Chrysler.

That augurs well for GM's Rick Wagoner, Ford's Alan Mulally and Chrysler's Robert Nardelli as they prepare for day two of hearings before the House Financial Services Committee Friday. But by no means should the Big Three, their suppliers, dealers or the United Auto Workers union breathe a sigh of relief. If there's any group that can kick around ideas and take no action on them, it's Congress.

Still, for advocates of a bailout, the horizon is less cloudy than it was at the beginning of the week. For one thing, not a single witness at Thursday's hearing opposed the idea of a government bailout, though Mark Zandi of Moody's Economy.com, who was also on the panel, says he believes the companies will need $75 billion to $125 billion to avoid bankruptcy--not the $34 billion they have requested.

In addition, the automakers are all open to various propositions put forth by the senators Thursday. The most popular of these is the idea of a government oversight board or trustee to manage the bailout, akin to the group that handled the government bailout of Chrysler Corp. in 1979 and 1980.

They're also agreeable to an idea put forth by Sen. Bob Casey, D-Pa., to subject the auto companies to monthly benchmarking so the government can ensure the money is being used as it sees fit. The Big Three are fine with having the Fed regulate their financing arms and another body (probably the oversight board) regulate the manufacturing companies. And they're on board with the idea of giving taxpayers the most senior position when it comes to repayment of the loans, though Ford has a slight complication with this because the company has already mortgaged all of its assets. Nonetheless, Mulally says "there must be a way" to work around this dilemma.