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House Financial Services Committee Chairman Barney Frank
(D-Mass.) said Wednesday that Democrats would seek to give $25 billion from a
massive federal bailout bill to U.S. automakers. The lawmaker said the push to help out the troubled car
industry would come during next week’s lame-duck session of Congress. While the
money would come from the $700 billion rescue measure signed into law last
month, Frank said it was important to pass an amendment to provide money for
the automakers with the support of majorities in both the House and Senate.
“It would just be wrong to take it out of TARP [the
Troubled Asset Relief Program] without a separate vote,” Frank said.
The lawmaker added that he believed that President Bush
would sign legislation to help prevent a collapse of the U.S. automobile
manufacturing industry.
"This
would be a terrible time and I think the White House knows that," he said.
The $25 billion would be separate from the
$25 billion that Congress provided car manufacturers to retool factories to
comply with tougher fuel-efficiency standards. Frank said there were some
efforts by the manufacturers to ask Congress to use the earlier $25 billion for
immediate financial help. He said House Speaker Nancy Pelosi (D-Calif.)
“absolutely rejected that with broad support.” Meantime, the
White House press secretary Dana Perino said Wednesday that Congress would be
responsible for adding legislation aimed at bailing out struggling automotive
manufacturers, but stopped short of endorsing whatever Congress might put
forth.
Perino made it
clear that President Bush would not be making any aggressive decisions without
congressional authorization, and she reiterated that the White House does not
think the “intent” of the rescue package was to include automakers.
Perino took issue
with the suggestion that Bush administration policies might be to blame for the
automakers’ failures. “People can blame the president of the United States for a lot of things and a
lot of things land on his desk, but the state of the automakers right now is
not the president of the United States’ fault,” she said. Perino added: “A
little bit of self-reflection is needed here, and not finger pointing at the
administration.”
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