BLBG: Treasury Ready to Prevent Failure of Automakers
By John Brinsley and Roger Runningen
Dec. 12 (Bloomberg) -- The U.S. Treasury said it is willing to provide financing to American automakers after the Senate yesterday failed to approve a rescue for the beleaguered companies.
“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,” Treasury spokeswoman Brookly McLaughlin said in an e-mailed statement.
White House spokeswoman Dana Perino said earlier today in a statement that the Bush administration is considering using some of the $700 billion Troubled Asset Relief Program to keep the auto companies afloat.
Treasury has allocated all but about $15 billion of the first half of the TARP funds, and Treasury Secretary Henry Paulson has until now repeatedly resisted calls to use the program to aid the automakers.
To contact the reporters on this story: John Brinsley in Washington at jbrinsley@bloomberg.net; Roger Runningen in Washington at rrunningen@bloomberg.net
