During a break from the Senate Banking Committee’s hearing on aid to domestic automakers, U.S. Sen. Sherrod Brown (D-Lorain) alleged hypocrisy behind approving loans to financial institutions with no strings attached but not for auto manufacturers.

Thursday the heads of GM, Ford, Chrysler and the United Auto Workers testified in front of the banking committee that Brown sits on. Brown said if senators and representatives can authorize $350 billion in support for financial institutions without requiring plans on how they’
ll spend taxpayer money, they can support giving $34 billion in loans to General Motors, Ford and Chrysler after the companies have presented viability plans, slashed executive compensation and pledge to repay the loans.

“The difference in how we responded to these two crises is striking,” Brown said during a conference call. “Many individual entities received payments well in excess of $38 billion without submitting any plans to Congress. Their CEOs didn’t come here.”

Brown said the credit crisis that spurred Congress and the Bush administration to help rescue financial institutions is harming the auto industry. However, Brown said the “unwritten story” of the auto crisis is that if GM, Ford and Chrysler collapse, they’ll bring down the financial industry because of the large amounts of bonds the companies have. Brown said direct and indirect fallout from automaker bankruptcy or liquidation makes a compelling case for giving loans.

“We have two choices: we can either provide bridge loans to the auto industry or we can allow the economy to drive off the bridge,” Brown said, adding that 450 steelworker layoffs in the Cleveland area are the direct result of slumping auto sales.

Brown declined to say whether those who may vote against giving automakers loans should be reelected.

“That’s up to people to decide in their own states,” Brown said.

U.S. Sen. George Voinovich (R-Cleveland) and Brown have worked closely together.

“Our offices are talking regularly,” Brown said, adding that both he and Voinovich have worked closely with U.S. Sens. Kit Bond (R-Mo.), Arlen Specter (R-Penn.), Carl Levin (D-Mich.) and Debbie Stabenow (D-Mich.) on auto loans.

As for the larger atmosphere surrounding the auto bailout debate, Brown said he believes there is a bias in the media and by many in Congress toward Wall Street. Brown said he wants to see more challenge management compensation.

“I wish we paid more attention...to the pay and benefits to the guys with private showers in their offices and criticize less the guys who shower in the locker room at the end of a shift,” he said.