UPDATE 2 - 4:00pm: WXYZ, a Detroit area ABC affiliate, has confirmed that the Treasury is going to step in and lend the automakers $14 billion to stay afloat short term.
WATCH the report on wxyz.com
UPDATE 1 - 12:25pm: WXYZ, a Detroit area ABC affiliate, just announced that Treasury Secretary Paulson is going to release $14 billion in short-term loans to the automakers.
This has not yet been confirmed, but the source is from Rep. Sander Levin's office.
From an AP report, earlier:
WASHINGTON (AP) - The United Auto Workers union is welcoming the Bush administration's vow to prevent the possible failure of any U.S. automakers in the next few weeks.
After the Senate rejected a $14 billion rescue plan for the industry, the White House today says the economy "could not withstand a body blow" that a "disorderly bankruptcy in the auto industry" would create.
Bush press secretary Dana Perino says Congress doesn't "have the votes to do anything," so the White House will have to consider other options.
The Treasury Department says it "will stand ready to prevent an imminent failure until Congress reconvenes" and takes action.
Tapping the $700 billion financial rescue is one of the few remaining options for General Motors and Chrysler, which have said the could run out of cash within weeks.
:: The Senate is playing politics as usual concerning the auto bailout, the dissent led by Sen. Shelby.
14 out of 35 votes against the bill came from the South, the Republican charge led by Alabama Sen. Shelby, the man who has succeeded in providing at least three, possibly four, foreign automakers in his state with BILLIONS in US taxpayer funds. WTF? How wrong is this? Shelby obviously has a very vested interest in the failure of the big three, as do the politicians in Kentucky, South Carolina, Mississippi and Texas.
Additionally, the GOP is interested in using this bailout as a union-busting tool, at the expense of the rest of the country, and millions of American jobs.They should be ashamed to call themselves Americans.
Conservatives Use Auto Rescue To Engage In Union Busting Campaign» - Think Progress
>>WATCH as the worldwide financial markets react negatively to this news. U.S. Stocks, Dollar, Oil Tumble After Auto-Rescue Bill Fails
Image credit: Bloomberg.com
>>WATCH: What's next for the big 3?
The best single source for breaking news and background on the auto bailout is on wxyz.com, an abc affiliate, and the leading source for news in the Detroit area.
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