US GOP Lawmaker Wants To Force Vote On Govt's Bailout Of GM

A Republican senator plans to attempt to force a vote on the Obama administration's bailout of General Motors Corp. (GM) by requiring the Treasury to allow lawmakers to vote on any money doled out through the Troubled Asset Relief Program.

Sen. Mike Johanns, R-Neb., plans to introduce legislation which would backdate the requirement for Treasury to seek Congress' approval for any spending through the financial rescue plan to May 29, before the administration finalized terms for GM's bankruptcy.

On Monday, the federal government announced that it could spend up to $50 billion to support the troubled car maker as it goes into bankruptcy protection, and then hold a majority stake in the firm once it completes a bankruptcy re-organization.

Johanns said his primary motivation for introducing the measure is due to the fact that the administration is spending tens of billions of dollars that was intended to rescue financial firms impacted by the Wall Street meltdown with no formal input from lawmakers. The requirement would apply to all Treasury financial transactions that involve the federal government receiving preferential or common shares in a private company in exchange for lending taxpayer money. It would continue to allow the Treasury to use other instruments such as equity warrants to protect public investments in companies.

Johanns said that he has been skeptical of federal government interventions through the various programs created by first the Bush and then continued or expanded by the Obama administrations. He said had Obama told lawmakers in January when he sought the release of the second tranche of $350 billion through the TARP program that within a matter of months the federal government would have a majority stake in GM, he wouldn't have gotten a single vote to release the funds. He plans to add the measure as an amendment to legislation currently before the Senate that would instruct the Food and Drug Administration to being regulating the tobacco industry.

Even though there is no connection between the two issues, if there is sufficient support from lawmakers, it could be added to the tobacco regulation bill.

Johanns said he has spoken to several Republican Senate colleagues about his legislation. Senate Democratic leadership would have to allow a vote on the amendment in order for it to be brought forward. Votes on amendments to the tobacco bill aren't likely to begin until Wednesday evening or Thursday morning.

-By Corey Boles, Dow Jones Newswires; 202-862-6601; [e-mail]