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"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.
Treasury spokeswoman Jennifer Zuccarelli.
Read more here.