Financial Times FT.com

Congress reaches an impasse on car bail-out

By Daniel Dombey and Andrew Ward in Washington and Bernard Simon in Toronto

Published: November 20 2008 21:07 | Last updated: November 21 2008 01:18

The US Congress is unable to approve a new emergency loan to the country’s troubled car sector, Democratic leaders said on Thursday.

Industry chiefs’ pleas for aid appeared to backfire after two days of hearings on Capitol Hill. News of the impasse over one of the hardest-hit sectors of the US economy came as President George W. Bush agreed to extend unemployment benefits after US weekly jobless claims hit a 16-year high.

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