WH Wants to See Concessions Before a Bailout
White House Says Bailout Deal Is Not Imminent
Administration Considers a Range of Options
Administration officials are considering a range of options that fall into three categories. The administration could provide a short-term fix to keep the companies afloat until next year, which would not necessarily be as much as the $14 billion in the congressional bill. They could also opt for a government-forced restructuring that would aim to accomplish what Congress failed to do, such as calling for a car czar, labor concessions and creditor concessions. The administration could also turn to "an orderly bankruptcy."
Perino suggested today that there's also another option not worth considering.
"One of the options here is allowing the companies to go into a disorderly bankruptcy," Perino said. "That's one of the options that's least favored by the president. Put it at the bottom of the list, because he does not think that in the current weakened state of our economy ... we could sustain such a body blow."
Nevertheless, Perino said Bush is still trying to determine whether the industry is willing to make the changes that will allow it to be viable.
"I don't think 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," Perino said. "I just do not think that will happen."
ABC News' Kirit Radia contributed to this report.
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