November 20, 2008 Lawmakers postpone auto bailout vote Play video

(John Moroney, NECN) - Investors went into sell mode on news from Washington that an auto bailout will not be coming before Thanksgiving. That combined with news of plunging retail sales sent stocks into a tailspin.

Not a good week on Capitol Hill for the Big Three automakers. They were told they needed to shape up if they want financial help from Congress.

Executives for General Motors, Ford and Chrysler are leaving Washington without 25-billion dollars in emergency loans. This after a series of contentious hearings ... Represented by this exchange with GM chief Rick Wagoner.

Democrats delayed a vote on the bailout until December. The move rattled the markets and sent the Dow Jones plummeting more than 440 points. But lawmakers says they want specifics on how the troubled auto industry will transform itself if the bailout is approved.

To prop up the fragile industry ... The white house is backing a plan to use some of the 25-billion-dollars already approved for more fuel-efficient cars. The head of the UAW says the failure of congress to act could be disastrous for the entire country.