Stabenow Still Opposes Auto Bankruptcy

Posted April 5, 2009 at 9:27am

Sen. Debbie Stabenow (D-Mich.) on Sunday said she continues to oppose bankruptcy for the automakers, asserting the cost to the federal government could be as much as $80 billion.But Stabenow, who appeared on CNN’s “State of the Union,” did not completely rule out backing bankruptcy, saying instead that it would not be her “first or second or third— option. Some observers believe the Obama administration is increasingly moving toward bankruptcy as an option for General Motors.Sen. Bob Corker (R-Tenn.), who appeared with Stabenow on the show, argued that President Barack Obama’s move to effectively fire GM CEO Rick Wagoner was heavy-handed, saying he disagreed “with coming in and just taking over a company like that.—But Stabenow accused Corker of his own heavy-handedness, saying Republicans had tried to force autoworkers to negotiate their salaries with them. Corker retorted that Stabenow was significantly distorting what happened and said he was seeking to craft a bill.