Lawmakers urge Fed, Treasury help for autos
WASHINGTON (Reuters) - The Federal Reserve and Treasury Department should weigh "all available options," including emergency loans, to restore liquidity to the distressed U.S. auto industry, a group of lawmakers said on Thursday.
Rep. John Dingell, a Michigan Democrat and chairman of the House of Representatives Energy and Commerce Committee, said during a conference call that manufacturers are considering approaching the government about a capital infusion.
Dingell and other lawmakers from Michigan also urged that help be extended quickly to suppliers and auto dealers. This includes the possibility of Treasury buying bad auto loans from auto financing companies.
"The Michigan delegation is pursuing all options and asking that the Bush administration -- Treasury, Fed, FDIC (Federal Deposit Insurance Corp) -- also consider all available options," Dingell said.
Rep. Sander Levin, a Democrat, said the government "rose to the occasion" to bail out Chrysler in 1980 and similar steps may be warranted now.
"If we lose this opportunity, we'll pay for it in terms of jobs and in terms of the basic manufacturing structure of this country," Levin said. "Inaction is unacceptable."
The group did not advocate a particular approach, saying that should be left to the relevant agencies and General Motors Corp, Ford Motor Co, and Chrysler Group LLC, run by Cerberus Capital Management.
(Reporting by John Crawley; Editing by Tim Dobbyn)
