Thaddeus McCotter And Gary Peters Write to Ben Bernanke and Timothy Geithner

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Michigan Representatives Gary C. Peters and Thaddeus McCotter have written the following letters to Ben Bernanke and Timothy Geithner regarding the failure of TALF funding to enable automobile dealers to buy vehicles from manufacturers. If dealers can't get credit to buy vehicles, manufacturers can't sell the vehicles.

The government lends billions to keep GM and Chrysler operating and then their customers are unable to seal the deal.

Just a little detail someone forgot to address.

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FOR IMMEDIATE RELEASE March 4, 2009 CONTACT: Jameson Cunningham Office: 202-225-8171 Cell: 202-288-2147 PETERS CONTACT: Cullen Schwarz Office: 202-225-5802 Cell: 202-641-3781 PETERS AND MCCOTTER URGE ACTION TO PROVIDE GREATER LIQUIDITY IN AUTO MARKETS Chairman Frank and other House Financial Services Members Join in Calling on Fed and Treasury to Provide Access to Credit for Auto Dealers Washington, D.C. – Congressmen Gary Peters and Thaddeus McCotter today called on the Federal Reserve and U.S. Treasury to act further to provide enhanced liquidity to promote domestic auto sales. In a letter to Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner, Peters and McCotter said that while the effort to promote liquidity in consumer markets through the Term Asset-Backed Securities Loan Facility (TALF) was welcome, providing greater access to domestic auto dealers is also needed. The letter, authored by Congressman Peters and McCotter, was also signed by House Financial Services Committee Chairman Barney Frank and other Committee Members. “If auto dealers can’t get financing, they can’t sell cars and our auto industry cannot recover,” said Congressman Peters. “The international credit crisis has crippled all sectors of the auto industry around the world. To protect millions of American jobs, we need a comprehensive approach to help the industry weather the global credit crisis. That means not only providing support to the Big Three and their parts suppliers and allowing consumers access to car loans, but also providing credit for dealers to keep cars moving on and off showroom floors. Efforts to protect jobs by supporting parts of the domestic auto industry could prove unsuccessful if we do not address the challenges facing all sectors of the industry.” “As our American auto industry’s working families continue to endure a painful and perilous restructuring process, we look forward to working with the Federal Reserve and Treasury Department to help these working families and our auto industry survive and, one day, thrive,” said Rep. McCotter. “If the American auto industry receives an enhanced bridge loan but cannot sell their cars, our communities will greatly suffer. I appreciate that Federal Reserve Chairman Bernanke is willing to revisit the issue and make sure our working families keep their jobs, their homes, and their dreams for their children. I hope both the Federal Reserve and Treasury Department speedily find a way to ensure adequate financing for auto dealers is available. We must forestall this credit crisis by keeping men and women working in the auto industry employed; thus, removing financing barriers for auto dealers is essential.” Yesterday, the Treasury Department and Federal Reserve announced the implementation of the TALF, through which up to $200 billion would be loaned to eligible owners of AAA-rated securities backed by auto, credit card and student loans to allow lenders to make more of these loans. However, rating agencies appear reluctant to rate loans to auto dealers as AAA, shutting dealers out of the program. Full text and signatories of the Peters/McCotter letters: