Pelosi, Reid Press for TARP Aid for Auto Industry
House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid sent a letter to Treasury Secretary Henry Paulson urging him to assist the Big Three auto makers by considering broadening the $700 billion Troubled Asset Relief Program to help the troubled industry.
The two top Democratic leaders in Congress are likely to make the request in a letter to the White House, which could be forwarded as soon as Saturday afternoon, said individuals familiar with the matter. President-elect Barack Obama is generally supportive of the appeal, but at the moment is moving on his own track to assist the industry, these individuals said.
Mr. Obama is scheduled to meet with President George W. Bush at the White House Monday.
The White House has been reluctant to broaden use of the $700 billion program, which was created by Congress just ahead of the election to deal improve credit flows and calm turmoil in financial markets incited by the downturn in the housing economy.
'It was not set up for anything else,' said Bush spokesman Tony Fratto, noting the only assistance authorized by Congress for the auto industry is a $25 billion loan package meant to help the industry retool to meet higher fuel economy standards.
The appeal from Mrs. Pelosi (D., Calif.) and Mr. Reid (D., Nev.) comes a few days after the lawmakers met with senior executives for the Big Three auto makers. The industry, facing huge losses, is seeking a range of government assistance, including access to the $700 billion program.
Though the administration is reluctant to widen the program to cover autos, there has been discussion among Bush officials of expanding use of the $700 billion to buy equity stakes in a range of financial-sector companies, moving beyond just banks and insurers. The focus would be on assisting companies that provide financing to the broad economy, such as bond insurers and specialty finance firms such as General Electric Co.'s GE Capital unit, CIT Group Inc. and others, individuals familiar with the matter said.
Democratic congressional leaders are considering convening a lame-duck session of Congress later this month to deal with economic concerns. The session could be used to enact a short-term stimulus package or to approve assistance for auto makers. But the Democratic leadership is not inclined to act, absent a signal from the White House that Mr. Bush would be willing to sign a bill. |
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