(CNSNews.com) - The $700-billion financial industry bailout legislation approved by Congress last fall gave the Obama administration all the authority it needed to take ownership of General Motors this week, White House Press Secretary Robert Gibbs told CNSNews.com.
On Monday, President Barack Obama announced the federal government was granting another $30.1 billion in aid to GM and taking ownership of 60 percent of the automaker as it enters bankruptcy.
When asked by CNSNews.com to explain "why specifically the government should be able" to take "control of 60 percent of a company" and put $30 billion in it "without direct congressional authorization," Gibbs said the following:
"Well, I think the money is based on the Troubled Asset Relief [Program], and is related to money that was approved in the prior administration through that program to deal with, as they had in the past administration, they were dealing with loans to cover--basically to bridge the operating costs," he said.
"Obviously, you know the history of this," said Gibbs, "the companies sought additional money, and the president believed that their restructuring plans weren't sufficient enough to meet the requirements of viability--and he's asked them to go back. We've seen one company emerge from bankruptcy with a buyer and another company there now." |