Rep. Darrell Issa of California, the top Republican on the House Oversight and Government Reform Committee, is set on introducing a legislative bid that seeks to end lobbying by General Motors Co. and Chrysler Group, companies that are still substantially owned by the federal government.
Issa's spokesman Kurt Bardella said that she will present an amendment to the financial regulation bills during the upcoming conference meeting.
This amendment would broaden the prohibition on lobbying by government-controlled mortgage giants, Fannie Mae and Freddie Mac, to all companies in which the government has ownership stakes.
The companies that fall in this category include GM, Chrysler, Ally Financial Inc. (the former GMAC) and insurer AIG.
In an e-mail, Bardella said that any company that has borrowed taxpayer dollars should be disallowed from hiring a lobbyist until a full repayment of the taxpayers' money has been reached.
Bardella added that there's no justification for permitting a company that's subsidized by the government to hire a lobbyist that would attempt to influence it.
The bill would also require the existing lobbyists to de-register, quit or have their contracts nullified. [via autonews]