U.S. Treasury Standing By to Begin Nationalization of Big 3 Automakers

AFP
December 12, 2008

WASHINGTON (AFP) — The US Treasury said Friday it is “ready” to avert the collapse of the Big Three US automakers until Congress can address their problems, a spokeswoman said Friday.

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“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,” Treasury spokeswoman Brookly McLaughlin said.

The announcement came shortly after the White House said it would consider tapping a 700-billion-dollar financial rescue fund administered by the Treasury “to prevent a collapse of troubled automakers” after lawmakers failed to pass an alternative.

“Given the current weakened state of the US economy, we will consider other options if necessary — including use of the TARP program — to prevent a collapse of troubled automakers,” said spokeswoman Dana Perino, referring to the Troubled Asset Relief Program conceived to help financial services firms.

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