Sen Dodd backs federal action on auto industry

WASHINGTON (Reuters) - The chairman of the U.S. Senate Banking Committee said on Thursday he favors federal government action to assist the struggling automobile industry and plans to hold a hearing on the issue next week.

"We're going to ask the automobile industry to be here on ... Monday or Tuesday, for a hearing," the Connecticut Democrat told reporters after a hearing on a separate issue.

"I would like to see us do something," he said.

"The Treasury has confirmed to me they have the authority to deal with the automotive industry ... So the authority exists. Now it doesn't require that they use it," he added.

(Reporting by Kevin Drawbaugh and Rachelle Younglai; Editing by Phil Berlowitz)