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WVAS Local
Alabama Senator Richard Shelby Critical of Government Assistance for General Motors
Washington – WASHINGTON (AP) - The ranking Republican on the Senate Banking
Committee says he believes the federal government's key role in a
likely bankruptcy filing by General Motors Corp. puts Washington
"on the road to socialism."
Alabama Sen. Richard Shelby said the financially beleaguered GM
should have filed a Chapter 11 bankruptcy six months ago. And he
said the U.S. government's stake in the company now facing a
restructuring-or-bankruptcy deadline in the next few days is
entirely too large.
Appearing Friday on CBS's "The Early Show," the Tuscaloosa
Republican said, "What I worry about is the government is going to
have over 50 percent invested in GM. It's basically going to be a
government-owned, government-run company."
The Treasury has loaned GM $19.4 billion and would provide $30
billion in additional financing to keep the new GM operating under
bankruptcy protection.
(Copyright 2009 by The Associated Press. All Rights Reserved.)