Auto dealers head to the Hill to lobby for exemption from financial overhaul

WASHINGTON – More than 100 auto dealers fanned out across Capitol Hill today to lobby to win an exclusion from the financial reform bill in the Senate, fighting a strict line from the Obama administration that their lending should fall under new oversight.
The dealers are talking up an amendment by Sen. Sam Brownback, R-Kan., that would exempt auto dealers from a new consumer financial protection agency created by the bill. The White House said on Monday that it would oppose any effort to “undermine consumer and investor protection or that allow institutions to avoid oversight.”
Brownback and dealers said the exclusion would still keep auto lending from banks and finance arms regulated, that dealers already face a phalanx of federal and state laws.
“Why, why would we need to create duplicative regulations for auto dealers and regulate each dollar of each auto loan twice? The answer is we don’t … it’s simply going to drive up the price to the consumer.”
Brownback said he believed the Obama administration and the Pentagon were playing some politics with the bill by trying to sweep in auto dealers. The Department of Defense has backed the inclusion of dealers, citing car dealer scams targeting soldiers that military officials have said could affect the readiness of troops to deploy.
“They are painting all of us as unpatriotic, and that is just wrong,” said Ray Ciccolo, a dealer from Boston and Marine veteran. “Auto dealers go out of their way for veterans.”
Republicans and Democratic Sen. Ben Nelson, D-Neb., blocked the financial reform bill from coming up for debate Monday. Senate Democrats have scheduled another vote for today, with both sides seeking compromise while hammering the other for not doing enough to stop Wall Street abuses.
Brownback said even if auto dealers were excluded from the bill, he would not support ending a filibuster or the overall bill, citing the sweep of the consumer protection agency among other objections.
Contact JUSTIN HYDE: (202) 906-8204 or jhyde@freepress.com. http://bit.ly/bq3HIm