Democrats reject White House plan

Congress’ Democratic leaders rejected a proposed “bipartisan compromise” from the White House which would have provided $25 billion in already-promised loans, currently earmarked for building high efficiency vehicles, tied to conditions other than fuel efficiency. 

While Congress and the White House are not showing any great desire to provide $25 billion in additional loans to the automakers, GMAC may soon receive far more than that amount in aid as it completes its legal transformation into a bank, and becomes eligible to collect from the $350 billion finance industry welfare fund.