Bank bailout funds could be used for Detroit
Sources: White House warning GOP senators Wall Street bailout funds might be used for automakers now that auto loan package has failed.
WASHINGTON (CNN) -- The proposal to loan $14 billion to Detroit's struggling automakers collapsed late Thursday night but the Big Three may get some money anyway.
Bush officials warned wavering GOP senators that if they didn't support the legislation, the White House will likely be forced to tap the Wall Street bailout to lend them money, two Republican congressional officials told CNN earlier.
This is a noteworthy change since the White House and Treasury Secretary Henry Paulson have previously refused to use bank bailout funds to help General Motors (GM, Fortune 500), Ford Motor (F, Fortune 500) and Chrysler LLC.
Meanwhile, Asian stock markets slide on news of failure to pass an emergency fund measure in Congress today.
