Perino: White House won’t be rushed into auto bailout

The White House said Tuesday that it is still in
negotiations with auto companies but refused to say how quickly a financial
bailout might happen, if it does.

White House press secretary Dana Perino declined to say
what the sticking points are between the various stakeholders. However, she
emphasized that every party involved will have to make concessions if they hope
to see any money from the administration.

{mosads}“That’s one of the things that we’re in communication
with them about and that we’re considering as we weigh all of our options in
the wake of not passing legislation last week,” Perino said. “I don’t think
that there’s any possible way that this president would agree to allow taxpayer
financing to go toward firms that are not willing to make tough decisions to
become viable and competitive in the future. I just do not think that will
happen.”

Perino stated that “no decisions have been made” about
how or whether the administration will help the floundering carmakers, but she
said the president does not want to see any of the companies fall into
“disorderly bankruptcy,” an option Perino said could be a “body blow” to an
already faltering economy.

Perino disputed the assumption that federal action was
imminent, and she said the White House will not be pressured to act quickly
without receiving concessions from the stakeholders.

“I think that we are moving with all deliberate speed in
order to try to do this in an orderly fashion,” she said. “But we’re not going
to be rushed into it just because there’s pressure from the media, or others
coming through you, on us to do something rash.”

She added: “I think that there’s been lots of rumors, and
I know that stakeholders who are involved, either from [Capitol] Hill or from
the industry, have tried to push the story as something that’s imminent.”

Perino said the White House never signaled that help
would “be almost immediate,” and the administration is still gathering financial
information from the companies.

“We will do it if we decide to do it, and we’ll do it in
the time that we think that is right,” she said.

Presumably, any help the White House could offer the auto
companies would come from the Troubled Asset Relief Program. However, Perino
declined to comment about that option. The Senate’s failure to act last week on
using existing loans to aid the companies would seem to have tied the
administration’s hands as to where it might find the money to help the companies.

“We are taking the time to try to do it right and
weighing all of the options,” Perino said.