December 3, 2008 11:43AM
The Congressmen Who Own Stakes in the Automakers
By Elizabeth MacDonald
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There’s a lot at stake in a potential $34 bn bailout of the automakers, as their chief executives head to Capitol Hill to ask for taxpayer funds.
That could include the personal stakes that elected officials own in the automakers.
Twenty-five members of Congress have reported on their financial disclosure forms that they own stock or other capital interests in the Big Three automakers, based on data compiled from the Center for Responsive Politics, a Washington, DC research group that tracks money in US politics. Fox News senior information specialist James Farrell pulled the data noted below.
Farrell notes that judicial ethics rules “prevent any bankruptcy judge with holdings in a company from presiding over a bankruptcy case. Essentially deciding whether or not the company has to file seems to be a little different.”
He adds: “If GM files for bankruptcy, the stock held by the politicians becomes essentially worthless overnight because they would be unsecured creditors at the absolute bottom of the bankruptcy food chain,” noting that, at a minimum, all shareholders “would get a significant haircut.”
Currently, the auto industry bailout is being debated as a specific, new piece of legislation. Whether it would be subsequently enacted as an amendment to the initial legislation codifying the Troubled Asset Relief Program is not clear at this point. If it is new legislation, all of Congress would be voting on it.
Already, Sen. Elizabeth Dole (R-NC), who lost her re-election bid, and Rep. Michael Castle (R-Del.) and a number of other Congressmen who own stakes sit on committees that conducted the first hearings on the auto industry bailout request prior to Thanksgiving.
Worth noting, too, is that Rep. John Campbell, (R-Calif.) plans to only vote present on any bailout measure for the automakers, because, as a former car dealer, he still owns land on which his former business sits. His staff says the Congressman doesn’t want even the appearance of a conflict of interest, a report indicates. Rep. Campbell voted yes on the financial bailout.
The information below on the Congressmen with holdings in Ford, General Motors and Chrysler comes from Congress’s 2007 financial disclosure forms, filed in May 2008, the most recent data available. Members of Congress are not required to report actual dollar sums, instead, they are allowed to report dollar ranges:
General Motors
| Politician | Amount |
| John D. Dingell (D-Mich) | $650,003 to $1,350,000 |
| Elizabeth Dole (R-NC) | $8,459 to $20,861 |
| Jon L. Kyl (R-Ariz) | $4,729 |
| Judd Gregg (R-NH) | $2,002 to $30,000 |
| Kay Bailey Hutchison (R-Tex) |
$1,001 to $15,000 |
| Zoe Lofgren (D-Calif) | $1,001 to $15,000 |
| Stephen Ira Cohen (D-Tenn) | $1,001 to $15,000 |
| F. James Sensenbrenner Jr. (R-Wis) | $1,001 to $15,000 |
| Todd Akin (R-Mo) | $1,001 to $15,000 |
| Eric Cantor (R-Va) | $1,001 to $15,000 |
| Steve Kagen (D-Wis) | $1,001 to $15,000 |
| Tom Coburn (R-Okla) | Up to $2,000 |
Source: Open Secrets, Center for Responsive Politics.
Note: Rep. John Dingell’s wife is the executive director for public affairs for G.M. and a descendant of the Fisher brothers, who founded the company that became General Motors 100 years ago. While Dingell’s spouse, Deborah Dingell, does not lobby Congress or the administration on GM’s behalf, “she makes the case for the company, the auto industry and the state of Michigan in public and in private,” a recent New York Times story says.
Ford
| Politician | Amount |
| Jon L. Kyl (R-Ariz) | $5,047 |
| Tom Coburn (R-Okla) |
$3,003 to $46,000 |
| Virgil H. Goode Jr. (R-Va) |
$15,001 to $50,000 |
| Dave Weldon (R-Fla) |
$15,001 to $50,000 |
| James M. Inhofe (R-Okla) |
$15,001 to $50,000 |
| Grace Napolitano (D-Calif) |
$15,001 to $50,000 |
| Elizabeth Dole (R-NC) |
$1,380 to $2,875 |
| Ray LaHood (R-Ill) |
$1,001 to $15,000 |
| Todd Akin (R-Mo) |
$1,001 to $15,000 |
| Michael N. Castle (R-Del) |
$1,001 to $15,000 |
| Jim Moran (D-Va) |
$1,001 to $15,000 |
| Stephanie Herseth Sandlin (D-SD) |
$1 to $1,000 |
| Michael Burgess (R-Texas) |
$1 to $1,000 |
| John McCain (R-AZ) |
Up to $2,000 |
| Jeff Bingaman (D-NM) |
Up to $1,000 |
Source: Open Secrets, Center for Responsive Politics.
Chrysler LLC
| Politician | Amount |
| Thad McCotter (R-Mich) | $1,001 to $15,000 |
Source: Open Secrets, Center for Responsive Politics.
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Watching today’s story about the proposed auto maker bail out all I heard was how high the workers wage package is. How it is not competitive with the Japanese manufactures and the discrepancy needs to be addressed.
How about an across the board percentage cut at GM. Everyone from the line worker, up through the entire management structure. I’m not talking down sizing etc. I am talking a compensation package cut.
How would the government like it if we who disapprove of the spending quit paying our taxes, then have them figure out where to get the money!
France, China,and Brazil all support their auto manufacturers.Germany and Japan pay for health care of auto workers.We can give money to banks,money to farmers,money to the air lines and now the Americans Fox news has a problem to keep Americans working. A the states with right work laws gave millions in tax brakes to build German and Japanese auto mobiles in their states. G.M and Ford can not build in China with out a Chinese auto partner to get part of the action.
Where was the bail out when I fell victim to a lay off?
I’ve read all the comments in this blog - and as most of the citizens in the USA - the majority of the bloggers oppose the bail-out of the auto industry. My heart says lend the money with accountability built in - my head says - NO - don’t spend another dime on bail-outs - let the people who caused this mess suffer for their actions or in-actions. We must stop this slide towards socialism NOW! We do not need to expand the powers of the government - we need to put them in their place - and remind these congressmen and women - they work for the citizens of this country - not select groups and guidelines such as UAW; NAFTA; EPA; IMF; WALL STREET & LARGE CORPORATIONS.
Does the thought of “term limits” ever cross your mind - these days???
I am frustrated the media is NOT reporting the full scope of the auto loan/bailout value. In testimony last week it was crystal clear the real number the auto makers are looking for is NOT $25B or $34B its closer to $60B. There are several request with various governmental agencies, some rejected and some pending. Those rejected are tied neatly into their current plan and if the funds do not become available they will be back at the table in 6-9 months.
Why aren’t you reporting the total request in front of the government? What we see on TV is not news, its a circus concocted by the liberals to appease the American public. The fact is; the automakers will get their loan with strings attached but the American public will never really know the total bailout request due to extremely poor reporting by the media.
Eric
Hawaii
I agree with Diane about NAFTA and GATT. The sad part is that Americans kept buying from foreign producers and did not support our domestic manufacturers, otherwise we would not have this huge trade imballance. All we have to do is look in the mirror to figure whom is to blame.
Strange that many here feel that the Congress members could gain with securities invested in the big 3. Many people short a stock, and can benefit if the stock goes down in price per share. If you wish to speak bad of Congress ( I have no problem with it ) they can make money from day to day. Example, a company AXL was trading about 15 days ago @ 1.03. 52 week high of 25.00. Congress around noon came out that it looked like a deal was in the works for the big 3. the stock zoomed to 1.81 in a 2 hour period of time. That afternoon, Congress said,” No deal, that the big 3 would have to come back to Washington,the 2nd., of December.” That same day, the stock went back down, and closed at 1.09. This friday with a general feeling that the big 3 have to have some form of help, the same stock closed @ 2.82. Wish I could have bought a million shares, 15 days ago, and the stock has alot of legs yet to go.
Emac,
I was in NYC on Thursday when my daughter was on a field trip to see “The Lion King”. I viewed Times Square and I was stunned by a majority of Toyota taxis. One would expect that most of them should have been Crown Vics. Signs of the times.
Why should the Big Three be bailed out? I worked at Hechinger’s which was a major home improvement chain until 1990 when I went into government. They operated a business model similar to the Big Three in which they had no competition, but no UAW to screw up matters. Then, Home Depot and Lowe’s moved into their area. By 1998, Hechinger’s folded. There was no bailout.
The Big Three should fail. They have a business plan that is outdated. This was geared for when there was no competition in the auto business. Overseas automobiles have been on our shores since 1960 and this is 2008. They have not “gotten it”. That 25 members of Congress who have a stake in these companies show that the investment is such a loser.
If they do, look at Great Britain. They had brands such as MG, Triumph, Austin Healey, Aston Martin, Leyland and Rover. When the Thatcher government divested itself from the mess, No one complained except the trade unions. Honda, Toyota, Nissan, VW, BMW and othere overseas manufacturers took over.
Bob H
Wake up America. Our governement is conscribing us to financial slavery to simply to line their own silk purses.We need domestic manufacturing and a middle class that can afford to be home on Saturday with their kids instead of working a double shift to stay afloat.All week long I heard bits and pieces of how overpaid UAW workers are.How terrible it has become to have a decent paying job.Its time to start over.Everyone stop paying their taxes and their mortgage.Dont worry,the government will print more wallpaper.
I agree NAFTA was a sham, jobs are leaving the US at alarming rates, if this keeps up our children will live in a 3rd world economy, just so the richist people in our country can get even richer, and our government doesn’t have a clue. Do we need to prop up our domestic car industry? I say yes. All the imports are supported by their respective counties. Our American companies can’t compete on an unlevel playing field.The only people that are against helping the Domestic car companies are those people who don’t think it can affect them, well sooner or latter it will, I don’t care what you do for a living, or where you live.
I agree with David DuPree, the most interesting thing this shows is the lack of faith the Congress has in the big 3. I wonder how much foreign automaker stock these people hold? Honda and Toayota are a good bet these days.
Only an economic illiterate would be opposed the bridge loan for the American auto companies.
I saw the list of where the Senators invest and they are all investing in American companies. That is a positive thing not negative.
The American auto industry has contributed to your high standard of living. A standard of living that has been and is quickly eroding. The erosions can easily be collated to the increase in market share of foreign companies.
So I salute anyone that supports any American company including the auto companies.
The automakers and the unions need to face the fact that their greed and arrogance got them where they are. Let them file bankruptcy like any other company with poor management. They have had decades to make changes but again their greed and arrogance won out. As for the unions, I wish I could get a pay check for sitting at home, and just how much do your bosses make? Go ahead and scream all you want the truth is the truth!!
This is a case of the middle-class, 401(k) retirement holder’s getting burned again… Why not help out the middle class this time instead of always giving to the ones who “have not”!
This IS WHAT MAKES REAL JOURNALISM