Late yesterday night, the U.S. Senate failed to pass a $14-billion rescue package for the Big 3. This morning, the Bush Administration announced it is considering providing help with money from the Wall Street bailout to prevent the collapse of the automakers.
In a statement, White House Press Secretary Dana Perino said that "given the current weakened state of the U.S. economy, we will consider other options if necessary -- including use of the TARP program -- to prevent a collapse of troubled automakers."
She was referring to the Troubled Assets Relief Program, a $700 billion fund created to help troubled financial firms.
"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time," said Perino.
This announcement came minutes before Wall Street stock markets opened this morning.
Perino added that "the auto companies, their labor unions and all other stakeholders must be prepared to make the meaningful concessions necessary to become viable."
This should include concessions by the UAW and bond holders, and a bar on bonuses for top executives.
photo:Ford, Lauren Victoria Burke
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In a statement, White House Press Secretary Dana Perino said that "given the current weakened state of the U.S. economy, we will consider other options if necessary -- including use of the TARP program -- to prevent a collapse of troubled automakers."
She was referring to the Troubled Assets Relief Program, a $700 billion fund created to help troubled financial firms.
"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time," said Perino.
This announcement came minutes before Wall Street stock markets opened this morning.
Perino added that "the auto companies, their labor unions and all other stakeholders must be prepared to make the meaningful concessions necessary to become viable."
This should include concessions by the UAW and bond holders, and a bar on bonuses for top executives.
photo:Ford, Lauren Victoria Burke