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Finger-pointing begins as Senate nixes auto vote

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  • Auto bailout
    Auto industry executives, from left, GM CEO Richard Wagoner, Chrysler CEO Robert Nardelli and Ford CEO Alan Mulally testify at Capitol Hill. (AP)

    For now, however, with the federal emergency loan plan stalled in the Senate, lawmakers in both parties are engaged in a high-stakes game of chicken, positioning themselves to blame each other for the failure.

    Senate Majority Leader Harry Reid, D-Nev., scrapped plans Wednesday for a vote on a bill to carve $25 billion in new auto industry loans out of the $700 billion Wall Street rescue fund.

    It's really up to Bush's team to act, he said.

    "I don't believe we need the legislation," Reid said. Treasury Secretary Henry Paulson can tap the financial industry bailout money to help auto companies, Reid said, but "he just doesn't want to do it."

    Not our responsibility, countered the White House.

    "If Congress leaves for a two-month vacation without having addressed this important issue ... then the Congress will bear responsibility for anything that happens in the next couple of months during their long vacation," said Dana Perino, the White House press secretary.

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    She said there was "no appetite" in the administration for using the financial industry bailout money to help auto companies.

    The White House and congressional Republicans instead called on Democrats to sign on to a GOP plan to divert a $25 billion loan program created by Congress in September - designed to help the companies develop more fuel-efficient vehicles - to meet the auto giants' immediate financial needs.

    Voinovich and Sen. Kit Bond, R-Mo., along with Democratic Sen. Carl Levin of Michigan, were at work on that measure Wednesday, trying to placate skeptical Democrats by including a guarantee that the fuel-efficiency loan fund would ultimately be replenished.

    ... contd.

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