Reply #88: Senate Republicans kill auto bailout bill [View All]

[kpete]

Source: Los Angeles Times



A last-ditch attempt at compromise fails, increasing the risk of bankruptcy for one of Detroit's Big Three and more turmoil for the overall economy.

By Jim Puzzanghera
December 12, 2008

Reporting from Washington -- Republican opposition killed a $14-billion auto industry bailout plan in the Senate on Thursday night, putting the future of U.S. automakers in doubt and threatening to deliver another blow to the economy.

The measure died after a last-ditch effort by Senate Democratic leaders to strike a compromise that would have lured enough support to save the legislation, which was crafted in consultation with the White House.

The bill's failure raises the possibility of bankruptcy by one or more of Detroit's Big Three and puts new pressure on President Bush to authorize emergency loans for the automakers from the $700-billion Wall Street rescue fund, a step he has adamantly refused to take.

The collapse of General Motors, Chrysler or Ford -- along with many of their suppliers and dealers -- could throw hundreds of thousands more workers onto the growing unemployment rolls and further cloud the closing days of the Bush administration.

Read more: http://www.latimes.com/business/la-fi-autobailout12-2008dec12,0,1660301.story