(CNN) - Illinois Attorney General Lisa Madigan has filed a motion with the state Supreme Court about Gov. Rod Blagojevich's "inability" to do his job, Madigan spokeswoman Robin Ziegler said Friday.
Madigan had said Thursday that stepping down is the "right thing" for Blagojevich to do.
She added, "If he fails to, the two other options are obviously the Legislature moving forward on impeachment, or I have the opportunity to actually go to our Illinois Supreme Court and ask them to declare basically that our governor is unable to serve," she said.
In that case, Lt. Gov. Pat Quinn would become acting governor, she said.
In a statement released by the transition team Friday, President-elect Obama reacted to the failure of the auto bailout last night:
"I am disappointed that the Senate could not reach agreement on a short-term plan for the auto industry. I share the frustration of so many about the decades of mismanagement in this industry that has helped deliver the current crisis. Those bad practices cannot be rewarded or continued. But I also know that millions of American jobs rely directly or indirectly on a viable auto industry, and that the beginnings of reform are at hand.
"The revival of our economy as a whole should not be a partisan issue. So I commend those in Congress as well as the Administration who tried valiantly to forge a compromise. My hope is that the Administration and the Congress will still find a way to give the industry the temporary assistance it needs while demanding the long-term restructuring that is absolutely required."
Watch: Senate unable to reach a deal
CHICAGO, Illinois (CNN) - Key Illinois Democratic legislators are circulating a letter urging support for the impeachment of Gov. Rod Blagojevich, who was arrested this week on federal corruption charges relating in part to the selection of President-elect Barack Obama's successor as a U.S. senator.
State Rep. John Fritchey, head of the House Civil Judiciary Committee, sent out the letter Thursday asking Democratic colleagues to say by Friday whether they support a move for impeachment and would like to be added as a co-sponsor of legislation.
"Faced with a significant budget shortfall, a national recession, and a vacant United States Senate seat, we cannot afford to allow Illinois to operate without effective leadership in the (Illinois) executive branch," said the
letter, also signed by Reps. Thomas Holbrook, David Miller and James Brosnahan.
"Simply put, it is imperative to replace Governor Blagojevich as soon as is practicable."
The letter said the impeachment filing was being prepared, and the lawmakers said they expected the process - the state House would bring charges against Blagojevich and he would be tried by the state Senate - would take "a matter of weeks rather than months."
WASHINGTON (CNN) – Federal and local officials are bracing for an expected massive turnout for the January inauguration of President-elect Barack Obama, but say predictions of 4 or 5 million visitors to Washington are too high.
However, authorities from several law enforcement and transportation agencies declined to offer an alternative estimate for the January 20 swearing-in and parade.
"We continue to check on expected planes and buses and hotel rooms, and I can say there's just nothing to suggest 4 million. But if it happens we'll be prepared to deal with that," said Malcolm Wiley, a spokesman for the U.S. Secret Service.
Watch: a Web site designed for the ticketless
For crowd control, the Metropolitan Washington Police Department has arranged for 4,000 police from departments outside Washington to match the 4,000 Washington police officers assigned exclusively to the inauguration.
Planners are looking for parking for an expected 10,000 tour buses from outside the Washington area. That's about 10 times the number of tour buses that flood the nation's capital annually for the Cherry Blossom Festival. So far, officials have found about 75 percent of needed bus parking, but space is becoming precious. Shuttle arrangements to sports stadium locations in Maryland are under consideration.
WASHINGTON (CNN) - The Bush administration will consider other options, if necessary, to prevent a collapse of troubled automakers Chrysler and General Motors, a White House spokeswoman said Friday, one day after the Senate failed to reach a compromise on a bailout plan.
"Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms," Dana Perino said in a written statement.
"However, given the current weakened state of the U.S. economy, we will consider other options if necessary – including use of the TARP program (Troubled Asset Relief Program) - to prevent a collapse of troubled automakers.
"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."
NEW YORK (CNNMoney.com) - The future of the U.S. auto industry was in doubt Friday morning after a proposal for $14 billion in federal loans died in a late night Senate vote.
The Senate voted 52-35 to bring the measure for a vote - short of the 60 votes needed to advance the legislation. The failure followed the collapse of negotiations between Senate Democrats and Republicans seeking a compromise that both parties, as well as the companies and the United Auto Workers union, could accept.
The dramatic late-night developments could doom General Motors to a bankruptcy and closure in the coming weeks, with Chrysler LLC potentially following close behind.
CNN: Auto bailout bill dies in Senate
Senate Democrats and the White House failed to find 60 votes to end debate on a $14 billion auto bailout bill and bring it to a vote Thursday night, killing the measure for the year.
CNN: Impeachment of Illinois governor pushed
Key Illinois Democratic legislators are circulating a letter urging support for the impeachment of Gov. Rod Blagojevich, who was arrested this week on federal corruption charges relating in part to the selection of President-elect Barack Obama's successor as a U.S. senator.
CNN: Illinois first lady scrutinized before husband arrested
Despite Patricia Blagojevich's myriad charitable endeavors, she is now thought of as the goading voice in the background of a November phone call taped by the FBI.
CNN: Bush opens up on struggle with alcohol abuse
President Bush reflected on his own struggle with alcohol in a White House meeting Thursday that touted gains in the war on drug abuse. CNN was the only media outlet invited to attend the entire meeting, which other reporters joined in the final minutes for remarks from the president.
CNN: Powell: GOP 'polarization' backfired in election
The Republican party must stop "shouting at the world" and start listening to minority groups if it is to win elections in the 21st century, former Secretary of State Colin Powell said Thursday.
CNN: 'This is why you should be president…'
After a campaign with a lot of focus on 3 a.m. phone calls, chief Obama strategist David Axelrod recalled a 2 a.m. e-mail as a decisive moment.