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White House weighs options for auto bailout
AFP - 2 hours 49 minutes ago
WASHINGTON (AFP) - - The White House is weighing its options for an auto industry bailout package and has not made any decisions yet on how to proceed, a spokesman said Saturday.
"We'll be focused on trying to get the policy right while considering the best interests of the taxpayer and our economy, and we'll take the time we have available to do that right," said spokesman Tony Fratto.
"No decisions have been made," he said, adding that administration officials were assessing the automakers' financial data.
"We'll take a look at that information, make some judgments and review our options," Fratto said.
After a short-term loan package of 14 billion dollars in government funds failed to pass the Senate this week, the administration of President George W. Bush signaled it would consider tapping the massive 700 billion dollar bailout for financial services to help the carmakers.
Auto giant General Motors has pleaded for government help and warned it will run out of cash by the end of this month without intervention. Chrysler and Ford have also asked for federal aid to stay afloat.
GM has admitted to hiring legal and financial advisors to consider all options, including bankruptcy.
"We're considering the full range of options with respect to the automakers, and we haven't indicated what we will do, except to note that disorderly bankruptcy is something we should try to avoid," a senior administration official said.
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