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| Version 1 | Version 2 |
|---|---|
| US mulls bank funds for carmakers | US mulls bank funds for carmakers |
| (about 1 hour later) | |
| The White House says it is considering using money earmarked to rescue the US banking industry to bail out the country's struggling automakers. | The White House says it is considering using money earmarked to rescue the US banking industry to bail out the country's struggling automakers. |
| A $14bn (£9.4bn) bail-out deal for the US car industry failed to get Senate support, raising fears of job cuts and a possible industry collapse. | A $14bn (£9.4bn) bail-out deal for the US car industry failed to get Senate support, raising fears of job cuts and a possible industry collapse. |
| The White House said that the US economy could not withstand a body blow like the collapse of the auto industry. | The White House said that the US economy could not withstand a body blow like the collapse of the auto industry. |
| The Federal government may have to step in, it added. | |
| 'Irresponsible' | |
| Earlier this year, the US approved a $700bn (£467bn) bail-out for the finance industry, known as the TARP programme. It had previously been reluctant to use this money for other industries. | Earlier this year, the US approved a $700bn (£467bn) bail-out for the finance industry, known as the TARP programme. It had previously been reluctant to use this money for other industries. |
| "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," White House spokeswoman Dana Perino said. | "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," White House spokeswoman Dana Perino said. |
| She added that it would be "irresponsible" to further weaken the economy by allowing the Detroit car companies to fail. | She added that it would be "irresponsible" to further weaken the economy by allowing the Detroit car companies to fail. |
| The Big Three - Chrysler, General Motors and Ford - employ 250,000 people directly, and many more indirectly, in companies making auto parts and car dealerships. | |
| The United Automobile Workers (UAW) union on Friday warned that if a bail-out was not forthcoming, the result would be "devastating." | |
| The union's president, Ron Gettelfinger said he was confident that there were "enough sane" people in Washington to find a solution despite the Senate's defeat of the bail out bill. |