Updated with videos after the jump.
“I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight,” Senate Majority Leader Harry Reid said late last night as a proposed bailout for the Detroit’s Big 3 failed to pass Senate. The Senate voted 52-35, short of the 60 votes needed to pass the legislation.
It’s reported that the pressure has now shifted to the White House asking President George W. Bush to consider intervening with emergency financing. What is the White House saying? According to Reuters, “the White House called congressional inaction a breakdown and said it would evaluate its options.”
Before the Senate hearing, both GM and Chrysler warned of bankruptcy and closure if they did not get government loans. As previously reported, Chrysler has already hired law firm Jones Day as its bankruptcy counsel. Reports of GM hiring a bankruptcy counsel came in last night.
Ford said it can survive an immediate crisis with the amount of cash they have on hand. However, it had requested $9 billion in credit if economic conditions continue to get worse.
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Auto bailout dies in U.S. Senate:
Republicans stand firm UAW wage concessions killed Senate Auto Vote: