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2008.12.1613:49:00UTC+00White House Says Announcement on Auto Aid "Not Imminent"

The White House sought to put the brakes on rampant speculation that an announcement of federal aid for struggling domestic automakers was around the corner.

Press Secretary Dana Perino, speaking at a press briefing Tuesday, reiterated that no decisions had been made on the scope or nature of a possible bailout for General Motors and Chrysler, which have said they may run out of cash in coming weeks.

However, Perino did say that President Bush was still considering what the administration could do to avoid a "disorderly bankruptcy" for one or more of the domestic automakers.

"We are taking the time to do it right and weighing all of the options," Perino said. "We're trying to figure out how can we help companies if we decide that we need to."

She added, "The president does not think we can sustain a disorderly bankruptcy. One of the options here is allowing the companies to go into a disorderly bankruptcy. That's one of the options least favored by the president; put it at the bottom of the list."

But Perino said that the White House would not be pressured into moving too quickly to prop up the industry.

"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 . on us to do something rash. We're trying to do something responsible."

Perino also rejected the notion that the administration could simply pick up where Congress left off, by imposing the conditions contained in a bailout bill that failed to garner enough support to overcome a Senate filibuster.

"It garnered the support of majorities of both the House and the Senate," Perino said. "That doesn't mean that you can just take that and cut and paste it into another [bill] . that you can just write a check and give it to the automakers and walk away."

Any federal aid from the administration will come with the requirement that the automakers restructure in order to become more viable in the future, Perino said.

"I don't think that there's any possible way that this president would agree to allow taxpayer financing to go towards firms that are not willing to make tough decisions to become viable and competitive in the future," she said.

One possible source of federal funds for the automakers is the Treasury Department's Troubled Asset Relief Program, or TARP, the $700 billion financial rescue fund. The White House said last week that they would consider the use of those funds.

However, the Treasury has reportedly committed all but $10 to $15 billion of the first half of the appropriations and would be required to go back to Congress to request the remaining $350 billion. Congress would then have to pass a bill to block the funds if it so chose.

In a brief interview with News, White House Deputy Press Secretary Tony Fratto declined to say whether there was enough money remaining in the first half of the TARP to assist the automakers.

"That depends on a whole lot of factors, none of which we're ready to share," Fratto told News.

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