Reply #16: Treasury Promised To Help Auto Industry

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US Treasury ready to stave off auto sector collapse

WASHINGTON (AFP) – The US Treasury said Friday it is "ready" to avert the collapse of the Big Three US automakers until Congress can address their problems, a spokeswoman said Friday.

"Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," Treasury spokeswoman Brookly McLaughlin said.

The announcement came shortly after the White House said it would consider tapping a 700-billion-dollar financial rescue fund administered by the Treasury "to prevent a collapse of troubled automakers" after lawmakers failed to pass an alternative.

More: http://news.yahoo.com/s/afp/20081212/bs_afp/usautoeconomygovernmentpublicaid_081212155435