Treasury Secretary Henry Paulson said the government should do what it can to keep U.S. automakers from failing and make sure that any reorganization under bankruptcy laws is as orderly as possible.
“Anything that’s done has to be a step along the way to long-term viability,” Paulson said Thursday in remarks at the “Captains of Industry” lecture series in New York.
“If the right outcome is reorganization or bankruptcy, then isn’t it better to get there through an orderly process where every effort is made to avoid it, and if it can’t be avoided, everyone’s prepared for it?” Paulson said.
He cautioned that the Bush administration has limited horizons as it enters its last month in office.
“The best case would be to start the companies on a path to viability,” Paulson said. “The ultimate success is going to be determined by the will and the ability of the next president, the next administration and the next Congress to get there.”
