UPDATE 2:44 P.M. — Sen. Carl Levin is speaking now, says that a compromise deal has been reached that will use the $25 billion originally approved for re-tooling the industry; Levin says there’s a “reasonable chance” that the deal could win 60 votes in the Senate. We’ll have more details shortly.
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Congress has blown hot and cold this week as to whether to extend a bailout the auto industry; after the Big Three’s leadership appeared in front of the Senate Banking Committee yesterday there were not enough votes to approve any kind of aid package. However it now appears that Michigan’s senators Carl Levin and Debbie Stabenow were able to negotiate a bi-partisan deal in concert with Sen. Kit Bond (R-Missouri). An announcement is tentatively expected at 2:30 p.m. today.
A new package approved by the Senate may not make it through the House, though, and the lame duck session ends tomorrow. Another lame duck session may need to be called in December in order for the House to sign off and get the bill to the White House before the end of the year.
There has been speculation that General Motors’ CEO Rick Wagoner may resign if necessary to cinch the deal in both the Senate and the House; this may be wishful thinking, though, as Wagoner’s comments could be parsed a number of different ways.
GM’s and Ford Motor Company’s stocks have fluctuated wildly today on speculation that a bailout is in the offing (NYSE: GM, F).
[Disclosure: the author of this post has an immediate family member who is employed by a capital equipment manufacturer which sells equipment to the automotive industry both in the U.S. and abroad.]