Senator wants GM chief to resign

CHICAGO — An influential senator drafting a multibillion-dollar bailout for Detroit's Big Three automakers said Sunday that the head of General Motors should step down.

Sen. Chris Dodd, D-Conn., chairman of the Banking Committee, said GM CEO Rick Wagoner "has to move on" as part of a government-run restructuring that should be a condition of financial life support for the auto industry.

"I think you have got to consider new leadership," Dodd said on CBS' "Face the Nation."

The sharp criticism reflects deep frustration on Capitol Hill at what many lawmakers regard as years of missteps, mistakes and arrogance by the Big Three automakers. At the same time, Washington is deeply worried about soaring unemployment — 533,000 jobs were lost in November alone — and the impact of an auto industry collapse on a nation already deep in recession.

Behind the scenes, House and Senate aides were hammering out legislation that would dole out billions to automakers within a week — but yank back the money if a government-run board and overseer named by President George W. Bush decided the companies weren't taking steps to overhaul themselves and become viable. A congressional aide outlined the emerging measure on condition of anonymity because it is not yet completed.

The plan would draw the emergency aid from an existing loan program meant to help the automakers build fuel-efficient vehicles. The size of the package hasn't been finalized, but it is expected to be about $15 billion, several congressional aides said.

It would create an oversight board comprised of key Cabinet secretaries — from the departments of Treasury, Energy, Labor, Commerce and Transportation — plus the Environmental Protection Agency administrator to oversee a broad auto industry restructuring.

In return for the money, the carmakers would have to agree to terms similar to those placed on banks that receive funds under the $700 billion Wall Street bailout: to limit their top executives' pay packages, cease paying dividends, give the government a chunk of future gains and guarantee that taxpayers would be reimbursed before any other shareholders, the aide said.

The bill under discussion would place the special investigator overseeing the bank rescue in charge of keeping tabs on the auto bailout.

The White House and Democratic congressional leaders are narrowing their differences over the auto bailout, but had yet to agree on specific legislative details, officials said.