Bush spokesman defends bailout

WASHINGTON, Dec. 23 (UPI) -- The bailout of the U.S. auto industry arranged by the Bush administration is the best possible given Congress's failure to act, a spokesman said Tuesday.

Asked about criticism from Republicans like House Minority Leader John Boehner, R-Ohio, and anti-tax activist Grover Norquist, Tony Fratto said that the agreement "is about encouraging meaningful concessions by all parties to make the reforms that they need to make." He said that President Bush and his advisers understand the need for major change in the industry.

"That's why we wanted the legislation from Congress, to ensure that, that it had the force of statute behind it, that it came from funds that were already appropriated by Congress for the auto industry," he said.

The auto bailout passed the House but failed to reach a floor vote in the Senate.

Asked about efforts to help homeowners avoid foreclosure, Fratto said that existing programs all have both strengths and weaknesses.

"If there was a perfect program out there, I think we would have implemented it already," he said.