Second $350 billion released

At the request of the White House and President-elect Barack Obama, today the Senate released the second $350 billion of the $700 federal rescue package demanded last year by George W. Bush and Treasury Secretary Paulson. Some of the money could be used to provide loans to the auto industry. Obama promised tighter control of the money; both Obama and others, including Republicans, said that the first $350 billion was not released in an accountable, clear fashion, and that the money had not had enough of an impact. Obama said he would place stricter limits on pay for chief executives, demand that taxpayers could see where the money was spent, add sensible regulations, and give more loans to small businesses. 

The House, meanwhile, is working on a bill that would require GM and Chrysler to get drastic concessions from the UAW to receive funds. No other assistance loans appear to have made demands on rank and file employees, though since many of the loans themselves have been kept secret, demands may have been made without public knowledge. 

Slashing wages for union workers has been a key demand for some legislators, particularly those in Southern states that have a heavily subsidized non-domestic car industry. Senators from Alabama, where the state paid Mercedes over $175,000 per job, and from Tennessee have been particularly vocal.

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