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Shelby Favors Bankruptcy, Not Bailout for Detroit

Sen. Richard Shelby (R-Ala.), the ranking member on the Senate bankingcommittee, said this morning that he will not support the $25 billion in loans to Detroit that automakers are seeking.

Instead, said Shelby, GM, Ford and Chrysler should be forced to file for Chapter 11 bankruptcy reorganization. Further, Shelby said, the three chief executives of the companies should be ousted.

"I don't think they have immediate plans to change their model, which is a model of failure," said Shelby, one day after his committee grilled the heads of the Big Three on a bailout.

Shelby appeared on CBS's "Early Show" with Rep. Barney Frank (D-Mass.), who disagreed, saying a Chapter 11 filing would be bad for the automakers' union workers.

The heads of the Big Three -- GM's Rick Wagoner, Ford's Alan Mulally and Chrysler's Bob Nardelli -- along with UAW head Ron Gettelfinger face Frank's Financial Services committee today at 10 a.m.

-- Frank Ahrens

The Ticker is Twittering!

By Frank Ahrens  |  November 19, 2008; 9:30 AM ET
Categories:  The Ticker  | Tags: Detroit bailout  
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Comments

Of course he wants the American auto companies to go bankrupt. That way he can get more Foreign cars built in his state. It's all about his state reaping the big rewards and the hell with the rest of the country. A typical republican...me, me, me,...

Posted by: tom4 | November 19, 2008 9:50 AM | Report abuse

But what about NASCAR?
Apart from The Tide, those Talledega races are the biggest thing in 'bama.

NASCAR will not survive the collapse of the dying three.

NASCAR is nothing other than a car club Palin lovin' 'necks, so what is up with the Republicans wanting to kill NASCAR?

Posted by: shrink2 | November 19, 2008 9:56 AM | Report abuse

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