In mid-December, Bank of America struck a deal behind closed doors with top U.S. financial officials: BofA could count on all the help it needed to cover the losses at Merrill Lynch, whatever they turned out to be. The important thing was for the deal to go through.

By Paul Kiel, ProPublic
Obama's economic team finally did get a bit more specific with their plans for the second $350 billion of the TARP, and it was enough to win the day in the Senate. On a 52-42 vote [1], the Senate voted to release the money.

There could soon be changes to the $700 billion bailout of the troubled U.S. financial system.

It’s been busy few weeks for the Treasury Department. Since mid-December when we updated you last [1], the bailout kicked into a higher gear, doling out more than $30 billion in celebration of the season of giving (OK, investing [2]). Added to the tally were U.S. auto companies, financial firms like American Express, CIT, and GMAC.

Ford Motor Company welcomes action to provide emergency fundin to GM and Chrysler and basically says no thanks, we are in a different position and don't need short term help.

The U.S. President George Bush speaking on TV announced that "allowing the U.S. auto industry to collapse is not a responsible course of action." The federal authorities will provide $13.4 billion in loans to Detroit automakers, the White House said Friday. However, Bush says the car makers must pay back the loan.

U.S.-based General Motors said Friday three plants in Mexico and three plants in Canada will close temporarily as it slashes production to cut costs. The president of the Canadian Auto Workers union Ken Lewenza said about 30,000 people will be without work for weeks, and that millions of jobs are at stake.

Last night the United States Congress failed to reach agreement on a loan package in support of the US auto industry. Obviously, we're very disappointed in this development.

This shows how little influence George W. Bush has within his own party. While the White House and House and Senate Democrats had worked in tandem to come up with the bill, GOP Senators demanded upfront concessions from the United Auto Workers (UAW) as the price for support needed for passage.

The Bush administration and Democratic lawmakers have reached a tentative agreement to provide the struggling U.S. auto industry with $15 billion in emergency loans.

The White House is reviewing a draft agreement submitted by Democratic Party lawmakers who say it could help the ailing U.S. auto industry survive the next few months and rescue millions of jobs.

The Big Three need the bailout. They’re meeting with Congress today, armed with recovery plans and hope. Auto industry officials are pleading with Congress for a $25 billion government loan. If the Big 3 is denied the bailout, the Chinese auto market will become the dominant auto industry.