Treasury ready to prevent collapse of automakers

AP
Treasury ready to prevent collapse of automakers
Friday December 12, 10:17 am ET
By Jeannine Aversa, AP Economics Writer
Treasury stands ready to 'prevent an imminent failure' of auto companies

WASHINGTON (AP) -- The Treasury Department said Friday it's prepared to act to avoid any possible collapse of nation's three largest auto companies given that rescue efforts in Congress have failed.

"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," said Treasury spokeswoman Brookly McLaughlin.

General Motors Corp., Chrysler LLC and Ford Motor Co. failed to secure $14 billion in emergency loans after efforts collapsed in the Senate late Thursday. The Senate rejected the bailout 52-35 on a procedural vote.

GM and Chrysler have said they're in danger of running out of money within weeks.

The White House on Friday said it considering new ways to help Detroit. The companies have prodded the Bush administration to tap into a $700 billion financial bailout fund for emergency aid.