WASHINGTON - Almost a dozen transit agencies are pressing Senate Finance Committee leaders to severely limit what banks and other investors in leaseback deals can obtain from them as the transactions unwind because of insurer rating downgrades.

They are hoping committee chairman Max Baucus, D-Mont., and ranking minority member Charles Grassley, R-Iowa, will introduce tax legislation early next year to help the transit agencies after the Treasury Department declined to step in as guarantor on these deals in place of American International Group Inc. AIG was guarantor of many of the deals, but its rating was downgraded, throwing them into technical default.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.