Tuesday, October 28, 2008

Bailout Bill May Rescue Detroit's Big Three Automakers

Recent statistics show that sales for Detroit's big three automakers - Ford, General Motors and Chrysler - are down by double-digit percentages. As these companies continue to struggle, policymakers from the Michigan Congressional delegation are pressuring the federal government to aid automakers using funds from the bailout plan.

As early as last week the delegation, headed by Rep. John D. Dingell (D), asked Treasury Secretary Paulson and Federal Reserve Chairman Bernanke to use their "broad regulatory authority" to "promote liquidity in the U.S. auto industry."

Treasury Department officials said yesterday that automakers are eligible for aid under a broad interpretation of the law that authorized the $700 billion financial rescue.
"The law grants the secretary broad authority to purchase troubled assets that he deems important to improving financial stability"

Treasury spokeswoman Jennifer Zuccarelli.
This matter continues to be disputed as other organizations, including insurance corporations and American subsidiaries of foreign banks, request support from the U.S. Treasury Department as well.

Read more here.

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