WASHINGTON (AP) - The ranking Republican on the Senate Banking Committee says he believes the federal government's key role in a likely bankruptcy filing by General Motors Corp. puts Washington "on the road to socialism."
Alabama Sen. Richard Shelby said the financially beleaguered GM should have filed a Chapter 11 bankruptcy six months ago.
And he said the U.S. government's stake in the company now facing a restructuring-or-bankruptcy deadline in the next few days is entirely too large.
Appearing Friday on CBS's "The Early Show," the Tuscaloosa Republican said, "What I worry about is the government is going to have over 50 percent invested in GM. It's basically going to be a government-owned, government-run company."
The Treasury has loaned GM $19.4 billion and would provide $30 billion in additional financing to keep the new GM operating under bankruptcy protection.