U.S. Senators: Auto Bailout No-Go for Now

The proposed $14 billion auto bailout, which passed the House, was defeated in a procedural vote by the U.S. Senate last night. However, both Indiana Senators, Richard Lugar (R) and Evan Bayh (D), voted in favor of allowing a vote on the measure.

Lugar says:

“A new Congress will be in place in a little more than three weeks and will be able to again consider options. In the meanwhile, the Administration has the funding and ability to extend credit to the car companies as they have already done in the financial sector,” Lugar said.

“In 1979, at the brink of collapse, the Chrysler Corporation came to Congress asking for aid. Senator Paul Tsongas and I worked more than six months to forge a deal based on tough love: assistance would be provided, but only on condition of substantial compromise by all parties,” Lugar said.