Washington, D.C., Dec 10 - Today, Congressman Dave Loebsack joined a bipartisan majority of his colleagues in supporting H.R. 7321, the Auto Industry Financing and Restructuring Act.  This legislation provides up to $15 billion in short-term bridge loans to American auto manufactures who agree to comply with strict regulations, adhere to comprehensive oversight, and commit to innovation and efficiency.

“The failure of the American automobile industry could jeopardize millions of jobs and have a devastating impact on our already struggling economy, especially here at home on Main Street,” said Congressman Loebsack.  “Today I joined a bipartisan majority of my colleagues to support a responsible assistance package for American automakers that requires these companies and their employees to overhaul their operations to ensure long-term viability while adhering to rigorous oversight.”

As our families, small businesses, and communities continue to feel the painful reality of this economic recession, Congressman Loebsack is working with his colleagues to protect current jobs, create new jobs, and help families struggling most during these difficult times.  The Auto Industry Financing and Restructuring Act is one part of this ongoing bipartisan effort in Congress because one in 10 American jobs is linked to the domestic auto industry, and it is a key pillar in  an American manufacturing  sector critical to our national security and economic competitiveness for decades to come.

The legislation passed today in the House of Representatives contains the following measures to ensure strict accountability to American Taxpayers:

• The Selection Of A Car Czar – The President will designate one or more individuals to hold the car companies accountable for developing and implementing viable long-term restructuring plans and ensure compliance on financing efforts.

• Taxpayer Protections – The government will get warrants for stock to allow taxpayers to profit from the companies’ recovery.  The structure of the federal bridge loans puts taxpayers ahead of all other lenders for repayment.

• No Dividends Paid – Over the life of the loans, shareholders will not earn dividends.

• Bans on Corporate Excess – No ‘golden parachutes,’ no bonuses for the 25 most highly paid employees at each company, and no corporate aircrafts, with requirements to sell or end leases on any existing aircraft.

• Strong Independent Oversight – The Government Accountability Office and the Special Inspector General overseeing the TARP financial rescue funds will both have oversight powers.

• Shared Sacrifice – auto executives, employees, labor unions, dealers, suppliers, creditors, and shareholders must all participate in the restructuring efforts.

• Commitment to Restructuring – to ensure the companies restructure to achieve viability, international competitiveness, fuel efficiency, and reduced emissions the Car Czar can require immediate repayment of the loan if the company has not made adequate progress by February 15th to develop a long-term restructuring plan.