Big Three Bailout Bill Crashes in the Senate

The deal-breaking issue, failing to agree on UAW wage cuts. Senate Majority Leader Harry Reid, D-Nev., said there would likely be no more Senate work this year. The Senate's action raises the likelihood that GM and Chrysler will have to file for bankruptcy protection, which will allow them to renegotiate their labor contracts and unilaterally implement their final offer if the UAW refuses to accept the terms and the bankruptcy court approves the final offer. That, however, can take months.

Check out coverage on CQ Politics, New York Time and Washington Post. See LLB's earlier post on H.R. 7321, the House version of the $14 billion auto industry bailout bill. [JH]