Good for Ford for passing up the cash with strings attached, and good for Senator Gregg:The White House announced a $17.4 billion rescue package for the troubled Detroit auto makers that allows them to avoid bankruptcy and leaves many of the big decisions for the incoming Obama administration.
Speaking from the White House, President George W. Bush said the administration decided against forcing a bankruptcy to compel cost-cutting, in order to avoid the risk that consumers would desert one or more of the companies and touch off an industry collapse, deepening the current economic downturn.
"The Administration's decision to use funds from TARP as a bridge loan to the auto companies to stave off bankruptcy is inconsistent with the purposes of TARP. These funds were not authorized by Congress for non-financial companies in distress, but were to be used to restore liquidity and stability in the overall financial system of the country and to help prevent fundamental systemic risks in the global marketplace."
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