The Wall Street Journal is reporting that amid news that a bid to extend a lifeline to the Big Three automakers failed in the Senate last night, the White House is considering allowing some of the $700 billion allocated for the Wall Street bailout to save the industry. A spokesman for the White House called it “irresponsible” to let the industry fail.

Certainly Hank Paulson doesn’t want to have the death of GM happen on his watch, considering unemployment is already at a 26-year high, the financial markets in dire straights and foreclosures are trudging on right through the holiday season.

No details yet, will report as they come.