Obama supports help for auto financing
WASHINGTON (AP) — Barack Obama's presidential campaign said Friday the federal government should act swiftly to help unlock credit for the financing of car loans crucial to U.S. automakers.
Obama's economic adviser Jason Furman said the Democrat supports calls by Michigan lawmakers for the Treasury Department and the Federal Reserve to use their authority in the $700 billion bailout plan to help the industry deal with the tight credit markets.
Michigan's congressional delegation said this week the lack of access to consumer car loans was hurting the industry and threatening the nation's manufacturing sector. Many banks and auto finance companies have tightened credit standards because they can't borrow money to lend, or they have been reluctant to lend and risk defaults.
"He doesn't want to take any options off the table to help the industry through this financial crisis," Furman said.
A McCain campaign spokeswoman could not immediately comment on the plan.
The Michigan lawmakers said Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke could take several steps under the bailout provisions, including buying troubled assets from auto finance companies. They said the auto companies were considering asking the Fed for access to a program that provides low-cost credit.
Obama has called for the administration to speed up the availability of $25 billion in low-interest loans approved by Congress last month and supports doubling the amount. The funding would help auto manufacturers and suppliers retool their plants and build fuel-efficient vehicles.
"He absolutely believes we need to get direct loans or loan guarantees to them as quickly as possible and thinks policy makers should examine every tool at their disposal," Furman said.
Source:http://ap.google.com/article/ALeqM5jSsx0wSlh