Word: bailouts
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Dates: during 1970-1979
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...bountiful Uncle Sam has ever given a U.S. company. Just before recessing for the holidays, Congress last week agreed to extend an extraordinary $1.5 billion loan guarantee to the ailing Chrysler Corp. and sent the measure to the White House for Jimmy Carter's signature. The gigantic bailout, dwarfing the $250 million Lockheed loan guarantee of 1971, is designed to save from bankruptcy the nation's third largest automaker and tenth ranking manufacturer (1978 sales: $13.6 billion). With Chrysler's losses mounting daily, its 1979 deficit is almost sure to exceed $1 billion, the gaudiest splash...
...work up House and Senate support. Much of the pressuring was concentrated on Wisconsin's Proxmire, who had let it be known that he would be in no great hurry to have his committee report out an aid bill before Christmas. Though Proxmire's opposition to the bailout is genuine enough, by last week he had agreed to a Riegle request that his hearings on the bill be moved forward from Nov. 19 to next week, so that they could be finished before the Thanksgiving recess...
...shutdown that would further weaken the nation's economy. That, plus the fear of having to campaign for renomination at a time when Chrysler plants might be closing for lack of operating capital, is what finally prompted the Administration to set aside any philosophical doubts about such a bailout and back a big loan guarantee...
...bailout plan comes with strict conditions attached, and it must also be approved by Congress, which will probably go along but may attach further limitations. Even so, the news cheered Chrysler's management, which is counting on a line of fuel-efficient, front-wheel-drive cars due to appear next year to spearhead a reversal of the company's decade-long slide and return it to solid profitability by 1981. Said lacocca after the Administration's announcement: "It's a vote of confidence we needed." Added Auto Workers Chief Douglas Fraser, who is joining Chrysler...
...praise was by no means unanimous, and among the most vocal critics of the bailout plan was Wisconsin Democrat William Proxmire, chairman of the Senate Banking Committee, which must consider the actual legislation involved. He blasted the proposal as "a massive giveaway for the taxpayers, and a massive windfall for the banks, stockholders and others who have the main stake in a Chrysler bailout." He also pledged to make any aid terms "as tough as possible...