'president bush'에 해당되는 글 2건

  1. 2008.12.20 A Bailout For Detroit by CEOinIRVINE
  2. 2008.11.25 As Bush's Term Ends, Some Big Names Seek Pardons by CEOinIRVINE

A Bailout For Detroit

Business 2008. 12. 20. 03:34

Christmas comes early for GM and Chrysler with $17.4 billion in aid, but many questions remain.

The White House has given Detroit an early Christmas present. Friday, President Bush announced the Federal government will provide immediate financial assistance to General Motors and Chrysler, which warned that, without aid, they might go out of business by the end of the month.

"In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action," Bush said.

Under the terms of the deal, the companies will receive $13.4 billion in emergency bridge loans. The money will be doled out from the $700 billion Troubled Asset Relief Program which the Treasury has at its disposal to alleviate the credit crunch. The companies will be eligible to receive an additional $4 billion in February. The bridge loans are expected to keep the companies afloat until at least March 31. If they have not been able to work out a viable plan for restructuring by that date, the administration will be able to recall the loans.

Without providing many specifics, Bush stressed that all parties involved--management, labor unions, creditors, bondholders, dealers and suppliers--will have to accept "meaningful concessions." Any money distributed from the TARP kitty includes restrictions on executive compensation and the ability for the government to take equity stakes in a company receiving assistance. Bush said bondholders will be forced to swap debt for equity and that workers will need to accept compensation "competitive" with foreign automakers operating in the United States.

In a statement, GM said the loans "will allow us to accelerate the completion of our aggressive restructuring plan for long-term, sustainable success." Chrysler Chief Executive Robert Nardelli said that his company will receive $4 billion in immediate assistance, which will allow the company to "move forward with the restructuring and streamlining of our organization that we began in 2007."

Not everyone in Detroit is so happy. Rep. John Dingell, D-Mich., a staunch Capitol Hill ally of the automakers, applauded the government's bailout, but said "it is irresponsible during a time of economic crisis for the White House to insist that workers take further wage cuts on top of the historic concessions they have already made."

The administration's announcement comes barely a week after congressional talks to provide government assistance to the companies fell apart in the Senate. General Motors (nyse: GM - news - people ) and Chrysler were relying on the Bush administration as their last and best hope for a bailout. Ford Motor (nyse: F - news - people ), which had previous asked for a government-issued line of credit, was not seeking an immediate bridge loan.



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(Lenny Ignelzi - AP)

With a backlog of applications piled up at the Justice Department, high-profile criminals and their well-connected lawyers increasingly are appealing directly to President Bush for special consideration on pardons and clemency, according to people involved in the process.

Among those seeking presidential action are former junk-bond salesman Michael Milken, who hired former solicitor general Theodore B. Olson, one of the nation's most prominent GOP lawyers, to plead his case for a pardon on 1980s-era securities fraud charges. Two politicians convicted of public corruption, former congressman Randy "Duke" Cunningham (R-Calif.) and four-term Louisiana governor Edwin W. Edwards (D), are asking Bush to shorten their prison terms.

It remains to be seen how Bush will respond to these requests as his term ends. The president has used his broad pardon powers rarely during seven years in office, granting 157 pardons out of 2,064 petitions, and only six of 7,707 requests for commutations, according to an analysis by former Justice Department lawyer Margaret C. Love.

Aggressive appeals for clemency at the end of an administration are not unusual, but they can raise concerns about influence peddling and fairness, particularly if the president and his legal advisers are not fully transparent, pardon scholars say.

During his last days in office, President Bill Clinton prompted congressional and federal investigations by pardoning 140 people, including his brother, former Arkansas real estate partner Susan McDougal and fugitive financier Marc Rich. White House officials and former deputy attorney general Eric H. Holder Jr., now a contender for attorney general under President-elect Barack Obama, testified about the last-minute pardons in fiery congressional hearings.

Bush has not mentioned pardons often, but in a statement released in July 2007, he said "the Constitution gives the President the power of clemency to be used when he deems it to be warranted."

White House spokesman Tony Fratto said, "Generally the president will review pardon recommendations as he has throughout his presidency, in a thoughtful way . . . on a case-by-case basis, and he'll make his determination."

Not all prominent criminals chose to seek presidential intervention. Alaska Sen. Ted Stevens, a powerful Republican, told reporters this week that he would not ask Bush to pardon him on his recent seven-count felony conviction.

Onetime vice presidential aide I. Lewis "Scooter" Libby, whose prison term Bush commuted last year, has not submitted a formal pardon request, the Justice Department said.

Efforts by high-profile felons come as a list of more routine applicants awaits action from a special Justice Department pardons office, a process that may take up to 18 months. Last month alone, 103 felons submitted pardon applications and 280 sought commutation of their prison terms, according to department statistics. Those figures stack atop an already daunting backlog of hundreds more petitions.

The overwhelming majority of petitioners are not household names. Rather, they are people who served prison time for garden-variety fraud or drug offenses and now seek the president's help so they can vote, live in public housing, own handguns or find jobs.

Clemency is the umbrella term for people seeking presidential relief after being convicted of a felony crime. Some applicants request their sentences be commuted, or shortened, by White House action. Others seek a formal pardon, described by one former Justice Department official as "an official statement of forgiveness."








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