Bailout talks collapse
on Capitol Hill
There is no deal for Detroit
Last Edited: Thursday, 11 Dec 2008, 10:51 PM EST
Created On: Thursday, 11 Dec 2008, 10:51 PM EST

WASHINGTON, D.C. (WIVB) - We're following breaking news from Washington Thursday night. Talks to bailout the nation's ailing auto industry have collapsed on Capitol Hill.

Earlier Thursday evening, it looked like a bi-partisan deal was in place in the Senate to send 14 billion dollars in emergency loans to General Motors and Chrysler. But that deal collapsed after the United Auto Workers refused to bow to Republican demands for swift wage cuts.

Without that compromise, there is no deal for Detroit.

Senator Richard Shelby (R-Alabama) said, "I am fundamentally opposed to any bailout because I believe at the end of the day, if there's not fundamental change, these companies will never be competitive."

Republicans say the UAW was not willing to make the cuts the GOP wanted until 2011.

Huge layoffs in the auto industry are making the lines even longer at the unemployment office.

Another 573,000 Americans filed jobless claims last week. That's the largest number in 26 years.

The number of Americans on unemployment is now closing in on four and a half million.

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