Speaking to reporters on Monday, December 8, House Speaker Nancy Pelosi said she was "encouraged" about the ongoing negotiations to craft a $15 billion emergency loan package for General Motors and Chrysler LLC.

The draft of a bill being considered yesterday would give the president the authority to select one or more overseers to direct the automakers' restructuring plans and, potentially, to compel bankruptcy proceedings if those plans fail to stay on target.

Without federal assistance, both GM and Chrysler say they will be out of cash by year's end. Additionally, Ford has asked for a $9 billion line of credit as a fallback position, saying it hopes not to access the funds but to achieve economic viability on its own.

The plan currently being considered would require the Detroit Big Three to illustrate by March 31 how they would become "viable, transparent, and accountable," according to Pelosi. If they fail to meet that requirement, federal aid would stop and payment of the loans would be due immediately.

Management, labor, and shareholders will all be faced with making concessions in order to achieve the long-term success of the companies. As Pelosi described the situation, "Everybody's getting a haircut."

Other provisions in the bill include a prohibition against the use of corporate jets. Executive compensation would be limited and no shareholder dividends would be forthcoming while the loans are pending. The companies also would be forbidden to challenge state greenhouse gas emissions rules.