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Sen. Shelby Says GM's Fate Should Have Been Decided By Market

Washington, D.C. – Sen. Richard Shelby says market forces, and not the government, should have decided GM's fate.

The Alabama Republican also says the automaker could have saved ``lots of money'' if it had entered bankruptcy protection six months ago.

Shelby tells CBS the government's huge stake in the company puts Washington on ``the road to socialism.''

GM is expected to file for bankruptcy protection Monday, the government's deadline for a restructuring plan.

Efforts to reshape the company are taking form. Union employees vote today on a contract that would cut benefits and slash labor costs. And GM says a bloc of its bondholders has agreed to a deal that would wipe out $27 billion of the automaker's unsecured debt in exchange for company stock.

Still, the ranking Republican on the Senate Banking Committee says he's sure ``there are not enough concessions there.''

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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