US Senate rejects auto industry bailout bill

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US Senate rejects Auto industry bailout
Washington, Dec 12: US Senate on Thursday, Dec 11 rejected a proposal to bailout the auto industry from being hit by the on going global economic crisis. The Democratic plan to extend $14 billion in loans to Detroit faltered when supporters failed to get enough support in a procedural vote.

White spokesman Tony Fratto said, "It's disappointing that Congress failed to act tonight. We will evaluate our options in light of the breakdown in Congress." But he refused to say what those options included. Earlier the Bush administration has resisted Democrats' past demand to use some money from the $700 billion bailout package approved in October to help struggling financial institutions.

Ford Motor Co has asked for a hefty line credit to over come the crisis, while General Motors Corp and Chrysler LLC had sought billions of dollars as immediate aid. Senate Majority Leader Harry Reid said, "It's over with" before before calling the vote that required the support of 60 members to advance the measure to final consideration.

Senators failed before the vote to reach a last-minute compromise.

OneIndia News (With inputs from Agencies)

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