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U.S. Says No (for Now) to California Bailout

Banks, insurance companies, auto companies, the mortgage industry, and now, California?

The Washington Post reports that the administration has rebuffed a round of advances from California officials for help with the state's $24 billion deficit... for now:

After a series of meetings, Treasury Secretary Timothy F. Geithner, top White House economists Lawrence Summers and Christina Romer, and other senior officials have decided that California could hold on a little longer and should get its budget in order rather than rely on a federal bailout.

These policymakers continue to watch the situation closely and do not rule out helping the state if its condition significantly deteriorates, a senior administration official said. But in that case, federal help would carry conditions to protect taxpayers and make similar requests for aid unattractive to other states, the official said. The official did not detail those conditions.

The paper points out that Michigan has made some headway in getting special aid (even setting aside the bailouts of GM and Chrysler) through a program to help auto parts suppliers switch industries.

Other links this morning:
Chrysler Resumes Production (WSJ)
Freddie's Accidental CEO Tries to Shed Job (WSJ)
Obama Stamp Is on Finance Rules (WSJ)
Town's Friendly Bank Left Nasty Mess (WSJ)
G.M. Announces Deal to Sell Saab (Reuters)

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