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Posts Tagged ‘TARP And Auto Bailout’

Sen. Christopher Dodd, D-Conn., Chairman of the Senate Committee on Banking, Housing and Urban Affairs, left, flanked by Sens. Carl Levin, D-Mich., Christopher Bond, R-Mo., George Voinovich, R-Ohio, Debbie Stabenow, D-Mich, and Sherrod Brown, D-Ohio, speaks with members of the media following the Senates rejection of an emergency $14 billion loan bailout for US auto companies, Thursday, Dec. 11, 2008, on Capitol Hill in Washington. (AP Photo/Haraz N. Ghanbari)

Sen. Christopher Dodd, D-Conn., Chairman of the Senate Committee on Banking, Housing and Urban Affairs, left, flanked by Sens. Carl Levin, D-Mich., Christopher Bond, R-Mo., George Voinovich, R-Ohio, Debbie Stabenow, D-Mich, and Sherrod Brown, D-Ohio, speaks with members of the media following the Senate's rejection of an emergency $14 billion loan bailout for US auto companies, Thursday, Dec. 11, 2008, on Capitol Hill in Washington. (AP Photo/Haraz N. Ghanbari)

Auto Bailout: White House Considers Using Wall Street Bailout Funds

KEN THOMAS and JULIE HIRSCHFELD DAVIS| December 12, 2008 12:45 PM EST | AP

WASHINGTON — Under mounting pressure to act, the Bush administration said Friday it was ready to step in and prevent the U.S. auto industry from collapsing after the Senate refused to pass a rescue bill endorsed by the White House and congressional Democrats. The most obvious source of help was the Wall Street bailout fund.

“The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,” White House press secretary Dana Perino said.

Treasury spokeswoman Brookly McLaughlin said, “Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry.”

Several administration officials said no specific announcement of a bailout was imminent, suggesting there was still time before General Motors Corp. and Chrysler LLC, the companies in most peril, would run out of cash. These officials spoke on condition of anonymity, saying they were not authorized to discuss internal deliberations.

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