Washington, DC–  Today, Congressman John F. Tierney (D-MA), issued the following statement with respect to the Auto Industry Financing and Restructuring Act (H.R. 7321), which he supported:

“The present discontent with the auto industry's history of bad management and lack of vision is well founded and certainly shared. In a sound economy, with credit flowing for entities passing through a bankruptcy reorganization, it may be appropriate for the market to take its course. However, the recession appears to be deepening and the projected impact of industry failure must not be taken lightly. An abrupt liquidation of even less than all of the so called “Detroit Three” in 2009 could have an estimated effect of 2.5 million jobs lost, potentially costing us billions in pension and other separation costs.
 
"This bill lends money conditioned on reforms and reorganization overseen by a Presidential designee and Congress’ respected oversight body – The Government Accountability Office  - with the goal of having a plan for viability in place by the end of March 2009.  Concessions will have to be made by all stakeholders.

"In light of our first reports from overseers of earlier passed banking assistance legislation (the TARP funds) indicating the Treasury Department’s failure to adhere to congressional lending requirements, this measure also demands necessary accounting and transparency for TARP funds and these loans so as to keep institutions focused on the legislative goals. Based on these considerations,  I supported this legislation with the knowledge that failure by the industry to meet the bill's requirements will result in immediate repayment demands,” Tierney said.

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