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
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