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Senate Republican leader Mitch McConnell pressed lawmakers to expedite $25 billion in previously approved auto loans as U.S. car company executives returned to Congress for the second straight day to plead for aid.

McConnell said loans approved last year to help pay for retooling auto plants to build fuel-efficient cars can be altered to fund auto-company operations.

“This is a proposal which I believe has support from both sides of the aisle and actually has the potential to pass right now and not next year,” the Kentucky Republican said on the Senate floor. “It is the only proposal now being considered that has a chance of actually becoming law.”

Support has waned for a Democratic plan to help the automakers with funds from the recently approved $700 billion bank-rescue fund. That idea is opposed by President George W. Bush and Senate Republicans, making it unlikely there are enough votes to overcome a presidential veto.

General Motors Corp. Chief Executive Richard Wagoner, Ford Motor Co.’s Alan Mulally and Robert Nardelli of Chrysler LLC are testifying today at a House Financial Services Committee hearing after telling a Senate panel yesterday they need $25 billion to keep operating.

“Without fresh capital, we project that GM may not have sufficient liquidity to make it to year end,” Deutsche Bank AG analysts including Rod Lache in New York wrote today in a note to investors.

Citigroup Inc., the U.S. bank with the most employees, plans to eliminate more than 50,000 jobs and cut expenses by 20 percent from their peak as the global economy contracts.

Chief Executive Officer Vikram Pandit intends to reduce headcount by about 14 percent to 300,000 in the “near term,” according to a presentation on the firm’s Web site today. Pandit has already cut 23,000 jobs, leaving the New York-based bank with 352,000 employees as of Sept. 30.

Citigroup slumped 19 percent in New York trading last week and is down 68 percent this year, after four straight quarterly losses totaling $20 billion. The fourth-biggest U.S. bank by market value will probably post a loss of about $187 million for the fourth quarter, analysts surveyed by Bloomberg estimated.

“Continued asset and expense reductions, while positive, are indicative that the operating environment has been and is expected to continue to be challenging,” Barclays Capital analyst Jason Goldberg said today in a report.

Citigroup declined 57 cents, or 6 percent, to $8.95 in composite trading on the New York Stock Exchange at 10:31 a.m., the second-worst performance behind BB&T Corp. on the 24-company KBW Bank Index.

Annual expenses will fall to about $50 billion in 2009, according to today’s presentation. Expenses in the past four quarters totaled $62 billion

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The economy is in a delicate balance right now! Will the democrats, with the control of the Senate and The Congress and now The White House be able to fix the sick economy? The firm stance that democrats have taken in the past will do nothing to help this economy like high taxes, controlled trade, more unions. One thing is certain that regardless of the intention of either party everyone needs to be Pro American Growth without this, our economy doesn’t stand a chance of get back on track! Every decision that will be made in the next four years needs to have a couple questions stamped on it “Is this good for America? Will this grow our country?”. If there are laws passed and money spent without this question being asked, it will make the road to recovery that much longer. Now with the election behind us, it is time for both parties, as well as the American people to get to work and help fix this economy!

Investors will start the month of November in the hope that the worst is behind for stocks, with credit conditions showing continued signs of improvement as governments around the world intervene to support financial markets.
“We are seeing some easing of the credit crisis,” said Paul Nolte, director of investments at Hinsdale Associate. “But we’ll continue to have lousy economic numbers for at least the next three to six months, if not more, and earnings will be the same.”
While the U.S. presidential elections on Tuesday are not seen as a major wildcard, a slew of mostly bad economic data will culminate with Friday’s employment report, expected to show the economy lost 200,000 jobs in October.
“As for the elections, the market will appreciate a decisive victory — if one candidate comes out strongly ahead, instead of making us stay up until three in the morning like we saw over the last few elections,” Nolte said. “Anyway, economic policies taken by either candidate won’t have any impact until the end of next year.”
Bad month, good week
Strong gains over the past week have left market strategists hopeful that the market made a solid low earlier in October.