Big Three lobbyists are pushing for the inclusion of auto loan-backed securities in the Treasury Department’s rescue plan, The Wall Street Journal is reporting this morning.
According to the Journal, “So far, Congress hasn’t agreed to include auto-industry finance companies in the bill specifically. Companies are ‘working to make it happen,’ said the auto-industry lobbyist. ‘The finance companies want language to that effect. They feel that if they are going to be included, they should be specifically included.'”
The article did not identify the lobbyists, although the article quotes a GMAC LLC spokeswoman who offered tacit support for the effort, saying, “In general we support any activity that would help bring stability to these markets.”
I have not seen any evidence suggesting that auto assets are anything like the drag on financial services companies that mortgage assets are. While I can understand the need to give Treasury flexibility, this seems to be an inopportune time to be playing what-ifs and grind down the legislative process by adding yet another wrinkle to the bailout.
