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Big Three Automaker Bailout Meets Republican Resistance

WASHINGTON (Reuters) – A key Republican Senator said on Sunday it was “pretty clear” a $25 billion bailout proposal for U.S. automakers will fail in the U.S. Senate, while Democrats argued saving the industry was critical to the U.S. economy.

The Senate is slated on Monday to begin debating emergency legislation to General Motors Corp, Ford Motor Co, and Chrysler LLC in a special post-election session to deal with the economic crisis.

The leading Democratic plan would authorize up to $25 billion in loans from the Treasury Department’s $700 billion corporate rescue program to help Detroit survive its financial crisis. In return, the government would take equity stakes in the companies and impose limits on executive compensation.