Bush: Worried about impact of disorderly auto failure

WASHINGTON (Reuters) - President George W. Bush said on Thursday that U.S. automakers were in fragile condition and he was worried about the impact a "disorderly bankruptcy" might have on financial markets.

Bush, who leaves office on January 20, also said he had not yet made a decision on how to aid automakers but insisted he did not want to leave a "major catastrophe" behind for President-elect Barack Obama in his first days in office.

"The autos obviously are very fragile," Bush told the American Enterprise Institute in Washington. "I am worried about a disorderly bankruptcy and what it would do to the psychology and the markets."

Bush is considering tapping into a $700 billion financial industry bailout package to help ailing U.S. automakers. The White House said earlier that the administration was nearing a conclusion of its deliberations on what to do.

"I haven't made up my mind yet," Bush said.

While reasserting his concern about the market impact of a disorderly automaker collapse, Bush said, "I'm also worried about putting good money after bad, and whether or not these autos will become viable in the future."

"There is also one other consideration," he added. "I feel an obligation to my successor ... I believe that good policy is not to dump him a major catastrophe in his first day in office. So those are some of the considerations we're weighing."

(Editing by Sandra Maler)