Auto-finance companies lead a growing list of liquidity-starved industries trying to get in on the huge government rescue plan targeted originally at cleaning up bad mortgage bets, reports the WSJ. As US Congress crafts a $700bn federal government plan, called TARP, to buy up financial companies’ troubled assets, auto-finance lobbyists are pressing for specific language including them, according to a lobbyist for one of the Big Three auto makers. Other businesses, such as student and credit-card lenders, also could eventually access the programme. To permit that, House and Senate versions of the bill written overnight – with lobbyist input – now include language broadening the types of assets eligible for sale under the plan, from “mortgage-related” to “troubled assets.” So far, Congress hasn’t agreed to include auto-industry finance companies in the bill specifically. But companies are “working to make it happen,” said one lobbyist.

This entry was posted by Gwen Robinson on Tuesday, September 23rd, 2008 at 5:42 and is filed under Capital markets. Edit this entry.