11/19/2008

Washington's rescue of the airline industry after the 9/11 attacks could provide a blueprint for saving Detroit's ailing automakers, according to The Wall Street Journal. "We weren't just going to give willy-nilly guarantees to companies that would inevitably be going to bankruptcy," recalls Mark Dayton, the former executive director of the Air Transportation Stabilization Board. Instead, airlines were required to present business plans, outline concessions by both management and labor, and issue stock warrants worth up to 30% of the company's value. Rep. Barney Frank, D-Mass., is proposing a similar process for automakers, including a special board to receive stock warrants and review restructuring plans.

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