Auto Bailout Would Grant $25B In Loans, Limit Pay

WASHINGTON – Senate Democrats are proposing to deny bonuses to U.S. auto executives making more than $250,000 a year in exchange for giving the firms and their suppliers $25 billion in loans from the $700 billion Wall Street bailout.

The companies would first have to give the government a plan for “long-term financial viability,” according to a copy of the legislation obtained by The Associated Press.

The loans – which would start at a 5 percent interest rate – would come from the second half of the financial industry rescue money.

The measure also would extend jobless aid to unemployed workers whose benefits have run out.