Bernanke says Fed reluctant to lend to car makers

WASHINGTON (Reuters) - The U.S. Federal Reserve would be reluctant to lend to auto makers, particularly if Congress had decided against such action, Fed Chairman Ben Bernanke told lawmakers in a letter made public on Tuesday.

"The Federal Reserve would be extremely reluctant to extend credit where Congress has actively considered providing assistance but, after due consideration, has decided not to act," Bernanke said in a December 5 letter to Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat.

Bernanke, in response to a letter from Dodd, said the Fed has invoked its emergency authority to lend to Wall Street firms to protect financial stability, which in turn was necessary to shield the broader economy.

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"Even if the companies have sufficient collateral, lending to an auto manufacturing company would represent a marked departure from that policy," he said.

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Extending credit to car makers would fall in the realm of industrial policy, which is Congress' role, Bernanke said.

(Reporting by Mark Felsenthal; Editing by James Dalgleish)