Friday, May 21, 2010
Sen. David Vitter
Large manufacturing companies that issue loans, like General Electric, are seeking exemptions from a new federal law regulating the financial industry, even though these businesses issue billions in loans and other financing.
With the help of Senator David Vitter (R-Louisiana), GE, the National Association of Manufacturers and the U.S. Chamber of Commerce are lobbying for an amendment to the financial regulation bill that would free businesses from tough new restrictions if they earn less than 85% of their revenue from financial services. Otherwise, without the added proviso, companies like Harley-Davidson and Caterpillar might be limited by how much they borrow or have to increase their capital reserves to cover potential losses.
Opponents of the amendment point to GE as an important example of why certain non-banks should come under the new financial regulations. The corporation, best known for making refrigerators and consumer appliances, loaned $72 billion in credit to commercial customers last year through its subsidiary, GE Capital.
-Noel Brinkerhoff
GE and Other Manufacturers Back Exemption in Financial Regulation Bill (by Jia Lynn Yang, Washington Post)
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