White House considering using Wall Street rescue fund to help troubled automakers
ABOARD AIR FORCE ONE (AP) — The White House says it is considering using the Wall Street rescue fund to prevent U.S. automakers from failing.
President George W. Bush’s press secretary says it would be “irresponsible” to further weaken the economy by letting the Detroit car companies fail. Dana Perino says the White House normally would prefer to let the financial markets determine the companies’ fate.
But she says that given the economy’s shape, the White House will consider other options if necessary to prevent the automakers’ collapse — and that could mean using money from the $700 billion Wall Street rescue.
Perino says Bush and top aides talked on Friday about the urgency of the situation. A potential $14 billion to aid the companies collapsed in the Senate on Thursday night.
Perino made the remarks as Bush flew to Texas for a commencement speech.
If this happens, the White House should insist that GM and Chrysler use their taxpayer money to pay down the $10 billion in payables they have outstanding to their vendors.