White House considers orderly Auto bankruptcy

Bush considering 'orderly' auto bankruptcy

White House press secretary Dana Perino said Thursday, “There's an orderly way to do bankruptcies that provides for more of a soft landing. I think that's what we would be talking about.”
She said the White House was close to a decision and emphasized there were still several possible approaches to assisting the automakers, such as short-term loans out of a $700-billion (U.S.) Wall Street rescue fund. Mr. Bush has resisted this approach before, and it is adamantly opposed by many Republicans.
She said one of the factors delaying an announcement on an auto rescue plan is the continuing discussion between the administration and the various sides that would have to sign on to a managed bankruptcy — entities such as labour unions and equity holders in addition to the companies themselves.
“If you thought that our economy today could handle the collapse of the American auto industry, then you might come to the conclusion that doing nothing was an option,” Ms. Perino said. “We're going to do something.”