While providing the Detroit’s Big 3 with a $17.4 billion bailout on Friday, the White House failed to appoint the much talked about “car czar” to oversee the loan given to General Motors and Chrysler. Instead the responsibility was given to Treasury Secretary Henry Paulson whose office also oversees the $700 billion Troubled Asset Relief (TARP) given to Wall Street.
According to deputy White House chief of staff, Joel Kaplan, the Bush administration decided to keep its focus on providing the auto industry with a bailout a month before President-elect Barack Obama takes office.
“We don’t think that’s something that we should impose … just for 31 days when the next administration may or may not have a different view about how they want to handle it,” Kaplan said.
According to Automotive News, Obama and his officials were not a part of the decision made on Friday but were kept informed about the bailout. Earlier reports say that Obama’s new “car czar” will be a Georgetown University law professor by the name of Daniel Tarullo (pictured above).