The fate of about 3 million jobs hangs in the balance as union workers and Republicans
clash on terms for a $14 billion auto bailout for General Motors Corp. and Chrysler LLC. This may prompt President George W. Bush to step in with TARP aid after he originally planned to stay out of the matter.
White House Press Secretary Dana Perino issued a statement saying, "Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms. However, 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."
Also, the
Treasury Department said Friday that it would step in and lend funds to the Big Three automakers until Congress has time to consider a long-term rescue package next year.
For a deep dive into what bankruptcy could mean to GM, check out
this feature on our Deal newsweekly site. -
Baz Hiralal
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