Carmakers' Bailout Pleas Hit Senate Skepticism

Protesters who briefly interrupted the hearing were a reminder of what polls show is thin public support for a rescue. "The bailout is a sellout!" demonstrators chanted as they were escorted from the hearing room by police.

General Motors CEO Rick Wagoner, passenger seat, left, travels in Frederick, Md.,Wednesday, Dec. 3, 2008, by car from Detroit to Washington to testify in a Congressional hearing on the auto industry bailout. (AP Photo/Gerald Herbert)

(AP)

Gene L. Dodaro, the top official at Congress' watchdog agency — the Government Accountability Office — agreed with Dodd that the financial industry rescue fund set up in October "is worded broadly enough" to permit it to be tapped for the automakers.

Dodaro testified that the Federal Reserve also has the authority under existing law to make loans to the domestic auto industry if it so chooses.

Dodd said that both Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke had been invited to testify at Thursday's hearing but had declined. He later criticized the treasury chief for traveling to China at a time of economic peril in the U.S.

"Time to come home — we have a serious problem here," Dodd said. "I need the Federal Reserve to step up as well."

Though the current total request is $34 billion, Ford's proposal says it might have to come back with a second request for an additional $4 billion if the recession persists into 2010, raising the total even higher.

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Associated Press writers Ken Thomas and Tom Raum contributed to this report.

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