Perhaps Friday?
The latest from the Bush Administration is that short-term loans for Chrysler and GM could come by Friday.
The loans, which were predicted to be available today, are now being held as Treasury Secretary Henry Paulson studies whether enough money will be left in the Troubled Asset Relief Program to bail out any banks that might run into problems before the keys to the White House are turned over to the new Barack Obama Administration next month. An alternative being explored is using the TARP funds as collateral for loans from the Federal Reserve.
Paulson, who had few questions for executives in his former Wall Street stomping ground, also said the Department is still asking questions of the automakers before it approves any transfer of funds. In addition, any money for the automakers will come with far more strings attached.
President Bush says he intends to act quickly, adding he had put aside his principles by allowing the use of money earmarked for the financial market bailout. “I have made a decision to make sure the economy doesn’t collapse. I’ve abandoned free-market principles to save the free market system.”
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