.Did Campaign Cash Influence Bailout? Banks Get 258,000 Percent Return from Investments in D.C. Pols.
“We're still in trouble. And it's now in the real economy. This is what is so frustrating. This is not Katrina. This is not a natural disaster. This was a man-made one. This was avoidable. This was preventable. What began with a problem with sub prime mortgages, which could have been corrected with some pain, clearly, but could have been corrected, has now cascaded into a problem that is affecting virtually millions of people's lives, their homes, their jobs, their retirements. So that is the great sadness in all of this, despite the efforts of many, including ourselves. And we're not without culpability.”
--Sen. Christopher Dodd (from Frontline Interview on the Financial Meltdown)
In my weeks of research into understanding how America went from economic lynchpin to a wayward ship drifting on a sea of economic trouble, I find myself baffled and appalled by statements from Sen. Christopher Dodd (D-CT), Chairman of the Senate Banking, Housing and Urban Affairs Committee.
His anger seems real enough. But the stench of hypocrisy reeks up the room every time he forgets to mention the hundreds of thousands of dollars he received in 2008 as campaign donations from these same banks, their management and employees—currently now under receivership of the U.S. taxpayer.
But Sen. Dodd is not alone. He and the biggest names in American politics, including President Barack Obama, are quickly becoming poster children for “moral hazard” and pay-to-play politics. Slap-dash legislation with little or no oversight, by the Bush Administration, rubber-stamped by top Democratic politicians, seems to have made problems worse, not better. Banks are hoarding bailout money, and its not getting down to consumers.
Dodd’s Senate committee—arguably one of the most powerful--created and oversees the Troubled Asset Relief Program (TARP)—the $700 billion dollar bailout of financial institutions—caught up in the sub-mortgage meltdown.
From all indications and reports, TARP has been universally acclaimed a failure-in-progress and bad news reports have angered large cross sections of America. Dodd and his committee seem powerless to reign in the titans of American finance and industry—despite widespread capital infusions from Congress. Unemployment is moving towards double digits and banks haven’t begun to unfreeze consumer credit, although a moratorium on mortgage foreclosures was set in place.
But the Senior Senator from Connecticut who said he personally turned a four-page draft into 80-plus pages of legislation that was passed, has crossed an ethical line. While he was crafting legislation to rescue his friends, Dodd “received $854,200 from the T.A.R.P. companies in the 2008 election cycle, including money to his presidential campaign” according to a recent Center for Responsive Politics (CRP) report.
And just this week, Dodd’s name surfaced again as recipient of $27,500 in campaign cash from the latest fraudulent investment house, Stanford Financial Group of Houston, TX, and Antigua. Robert Allen Stanford was a top Democratic contributor, and is currently at large—wanted by the F.B.I. for defrauding investors by inflating outcomes—in what appears to be a multi-billion dollar Ponzi scheme.
According to the C.R.P., employees of Stanford “gave $2.4 million to federal candidates, parties and committees since 2000, with 65 percent of that going to Democrats. Stanford and his wife, Susan, have given $931,100 out of their own pockets, with 78 percent going to Democrats.”
In committee, Sen. Dodd, on behalf of the American public, chastises the Federal Reserve Bank, the Treasury Department, heads of Auto Corporations about scandals, executive bonus compensation, private jets, junkets for bailout banks to Vegas. Everyday it seems another financial institution C.E.O., is being dragged before the Senate and House Finance and Banking committees to explain themselves, with Dodd acting indignant. It is political theater at its most twisted and grotesque.
In a search for a viable scapegoat for the inability of the government to right the ship despite unprecedented access to government purse-strings, I propose that every politician—including Sen. Dodd--give back the millions of dollars of campaign contributions received in the last election cycle from T.A.R.P. recipients and other corporate titans who drove their companies into bankruptcy through corruption or malfeasance.
President Barack Obama should show leadership and return millions of dollars in campaign contributions received from T.A.R.P. recipients or their employees. Candidate Obama received an estimated $4.3 million in contributions from them during his presidential campaign. But Obama’s campaign wasn’t the only one receiving campaign cash, as Republican candidates John McCain and Mitt Romney made the list as well as top House and Senate Republicans who chair important committees.
“Some of the top recipients of contributions from companies receiving TARP money are the same members of Congress who chair committees charged with regulating the financial sector and overseeing the effectiveness of this unprecedented government program. They include Sen. Chris Dodd of Connecticut, chairman of the Senate Committee on Banking, Housing and Urban Affairs (he received $854,200 from the companies in the 2008 election cycle, including money to his presidential campaign) and Sen. Max Baucus of Montana, chair of the Senate Finance Committee (he received $279,000).
In total, members of the Senate Committee on Banking, Housing and Urban Affairs, Senate Finance Committee and House Financial Services Committee received $5.2 million from TARP recipients in the 2007-2008 election cycle. President Obama collected at least $4.3 million from employees at these companies for his presidential campaign.”
So the whole time, Americans were being told that a few bad apples where responsible for the economic downturn, it in fact it seems the whole barrel of apple was rotten to the core.
While Americans were asked to foot the bill—for generations—to bail out Wall Street executives from their sub-prime, mortgage-mad, derivatives driven, un-regulated market—politicians from all parties lined up to feed at the trough—knowing full well that it was these same companies’ bad business practices that placed our financial system at systemic risk.
Sen. Christopher Dodd, who is being paid by taxpayers to oversee these institutions, should return the money on principle or resign from the committee.
In total, Dodd raised almost $9 million dollars in 07-08 for his failed Presidential run and successful Senate re-election campaign with $4,180,696 coming from persons involved in Securities and Investment Banking sectors, $1,278,241 from the Real Estate sector and $900,000 from commercial banking interests. Dodd also received $316, 994 from Citigroup Inc., and $223,478 from A.I.G. from 2003 to 2008, and was near the top of recipients of campaign cash from commercial banks who gave $570,294 to his campaign.
But Dodd was not alone on his committee. According to the C.R.P report “members of the Senate Committee on Banking, Housing and Urban Affairs, Senate Finance Committee and House Financial Services Committee received $5.2 million from TARP recipients in the 2007-2008 election cycle.”
Sen. Chuck Schumer and Sen. Hillary Clinton—in whose state most of this securities fraud took place—should return every cent to the employees of bailout companies, many of whom are now collecting unemployment checks. Now that’s some real direct economic stimulus. Why are American elections being financed by contributions of scammers and crooks looking to purchase favor with lawmakers?
With every scandal, the same politicians’ names keep popping up as receiving campaign cash from bankrupt companies, some begging for a bailout from the Congress. The pattern seems clear. Start a company, join a lobbying group, fund political contributions to key politicians on important committees who are in charge of oversight, and hope nobody catches you.
Madoff, Stanford, sub-prime, short selling, derivatives…different scams with similar playbooks. Wall Street stays one step ahead of legislators and regulators because of the politicians coming with hat in hand every election cycle to fund their million dollar re-election campaigns.
Every presidential and congressional campaign that received contributions from Madoff or Stanford or TARP companies, including President Obama, Sen. McCain, Secretary of State Hillary Clinton, Mitt Romney, Rudy Giuliani and Dodd, should be required to return contributions from these tainted sources. Taking money from people who defraud, con and steal investors’ dreams is unethical, to say the least.
That goes for all members of Congress who received campaign cash from JPMorgan, Wells Fargo, Citigroup, Lehman, GMAC, Freddie Mac, Fannie Mae or any of the hundreds of financial service companies now being bailed out with taxpayer dollar
According to campaign contribution reports, Candidate Obama received over $1 million from employees of Goldman Sachs and over $15 million from the Securities and Investment banking sectors for his 07-08’ Presidential run.
Somewhere in the timeline during last September’s economic free-fall, Dodd recalls a meeting with Treasury Sec. Paulson, Fed Reserve Chairman Ben Bernanke and “12 or 13 others” when top legislators were told they had 72 hours to save the economy. This meeting would bring about government intervention in the form of the T.A.R.P. legislation. Here is Sen. Dodd’s recollection of the fateful and historic meeting as told to Frontline.
“It's the economic equivalent of 9/11 in my view, having been here for both events, ... sitting in that room with Hank Paulson saying to us, in very measured tones, no hyperbole, no excessive adjectives, that unless you act, the financial system of this country and the world will melt down in a matter of days. There was literally a pause in that room where the oxygen left.”
“Literally -- I know I'm drawing too close of an analogy here given the lives lost on 9/11, but it's that kind of a moment. This is not some analyst. This is not some functionary at the Treasury. This is the chairman of the Federal Reserve Bank, the most important central bank in the world, announcing to the leadership, Republicans and Democrats of Congress, "Unless we act within days, the financial system will melt down." And so the next 13 days were historic here.”
“There are about 12 or 13 of us. It's the leadership, the Speaker [of the House Nancy Pelosi (D-CA.)], the Democratic leadership of the House, the Senate -- [Senate Majority Leader] Harry Reid [D-Nev.], of course; Dick Durbin [D-Ill.]; Chuck Schumer [D-N.Y.]; myself; Dick Shelby [R-Ala.], [Rep.] John Boehner [R-Ohio].” --Sen. Christopher Dodd from Frontline interview.
Let us take a closer look at this high level meeting to bailout the banks that took place just weeks before the 08’ election.
According to the C.R.P. report, Sen. Chris Dodd received $854,200 from various financial groups, including $570,294 from commercial banks in the 07-08’ election cycle.
-Speaker of House Nancy Pelosi received a paltry $15,600 from JPMorgan/Chase, $11,000 from both Citigroup and Goldman Sachs.
-Sen. Majority Leader Harry Reid received $71,500 in from JPMorgan/Chase and $47,350 from Citigroup.
-Alabama Sen. Dick Shelby who sits on the Senate Banking Committee got $91,200 from his top contributor; Citigroup, and $66,500 from JP Morgan/Chase.
-Senior Illinois Sen. Dick Durbin got $46,575 from Citigroup and $19,500 from Goldman Sachs.
-New York Sen. Chuck Schumer raked in $80,800 from Citigroup, $58,000 from Goldman Sachs, $57,000 from Morgan Stanley, $53,750 from Lehman, $50,250 from Merrill Lynch, $47,800 from JP Morgan Chase—raised over $1 million from Securities and Investment firms.
-Sen. Minority Leader Republican John Boehner got $14,300 from Morgan Stanley and $12,000 from Goldman Sachs.
These where the same people—our legislators and leadership who were charged with giving a blank check of $700 billion to companies who were funding their re-election campaigns. Can you spell conflict of interest? By rights lawmakers, including all Presidential campaigns--should return any money received from employees and management of these failed corporations they are legally responsible to regulate.
As one CRP report states, the bailout companies got a bang for the political buck. “The companies that have been awarded taxpayers' money from Congress's bailout bill spent $77 million on lobbying and $37 million on federal campaign contributions. The CRP estimates the return on their political investments: 258,449 percent.”
New Treasury Secretary Tim Geithner quietly banned further government lobbying by companies receiving government assistance. Smart move. Now if you can get some political accountability out of the lawmakers in Washington D.C., we might have a chance to bring confidence back in the markets and the complex legal framework already in place to protect investors and institutions.
KC Tribune
--Sen. Christopher Dodd (from Frontline Interview on the Financial Meltdown)
In my weeks of research into understanding how America went from economic lynchpin to a wayward ship drifting on a sea of economic trouble, I find myself baffled and appalled by statements from Sen. Christopher Dodd (D-CT), Chairman of the Senate Banking, Housing and Urban Affairs Committee.
His anger seems real enough. But the stench of hypocrisy reeks up the room every time he forgets to mention the hundreds of thousands of dollars he received in 2008 as campaign donations from these same banks, their management and employees—currently now under receivership of the U.S. taxpayer.
But Sen. Dodd is not alone. He and the biggest names in American politics, including President Barack Obama, are quickly becoming poster children for “moral hazard” and pay-to-play politics. Slap-dash legislation with little or no oversight, by the Bush Administration, rubber-stamped by top Democratic politicians, seems to have made problems worse, not better. Banks are hoarding bailout money, and its not getting down to consumers.
Dodd’s Senate committee—arguably one of the most powerful--created and oversees the Troubled Asset Relief Program (TARP)—the $700 billion dollar bailout of financial institutions—caught up in the sub-mortgage meltdown.
From all indications and reports, TARP has been universally acclaimed a failure-in-progress and bad news reports have angered large cross sections of America. Dodd and his committee seem powerless to reign in the titans of American finance and industry—despite widespread capital infusions from Congress. Unemployment is moving towards double digits and banks haven’t begun to unfreeze consumer credit, although a moratorium on mortgage foreclosures was set in place.
But the Senior Senator from Connecticut who said he personally turned a four-page draft into 80-plus pages of legislation that was passed, has crossed an ethical line. While he was crafting legislation to rescue his friends, Dodd “received $854,200 from the T.A.R.P. companies in the 2008 election cycle, including money to his presidential campaign” according to a recent Center for Responsive Politics (CRP) report.
And just this week, Dodd’s name surfaced again as recipient of $27,500 in campaign cash from the latest fraudulent investment house, Stanford Financial Group of Houston, TX, and Antigua. Robert Allen Stanford was a top Democratic contributor, and is currently at large—wanted by the F.B.I. for defrauding investors by inflating outcomes—in what appears to be a multi-billion dollar Ponzi scheme.
According to the C.R.P., employees of Stanford “gave $2.4 million to federal candidates, parties and committees since 2000, with 65 percent of that going to Democrats. Stanford and his wife, Susan, have given $931,100 out of their own pockets, with 78 percent going to Democrats.”
In committee, Sen. Dodd, on behalf of the American public, chastises the Federal Reserve Bank, the Treasury Department, heads of Auto Corporations about scandals, executive bonus compensation, private jets, junkets for bailout banks to Vegas. Everyday it seems another financial institution C.E.O., is being dragged before the Senate and House Finance and Banking committees to explain themselves, with Dodd acting indignant. It is political theater at its most twisted and grotesque.
In a search for a viable scapegoat for the inability of the government to right the ship despite unprecedented access to government purse-strings, I propose that every politician—including Sen. Dodd--give back the millions of dollars of campaign contributions received in the last election cycle from T.A.R.P. recipients and other corporate titans who drove their companies into bankruptcy through corruption or malfeasance.
President Barack Obama should show leadership and return millions of dollars in campaign contributions received from T.A.R.P. recipients or their employees. Candidate Obama received an estimated $4.3 million in contributions from them during his presidential campaign. But Obama’s campaign wasn’t the only one receiving campaign cash, as Republican candidates John McCain and Mitt Romney made the list as well as top House and Senate Republicans who chair important committees.
“Some of the top recipients of contributions from companies receiving TARP money are the same members of Congress who chair committees charged with regulating the financial sector and overseeing the effectiveness of this unprecedented government program. They include Sen. Chris Dodd of Connecticut, chairman of the Senate Committee on Banking, Housing and Urban Affairs (he received $854,200 from the companies in the 2008 election cycle, including money to his presidential campaign) and Sen. Max Baucus of Montana, chair of the Senate Finance Committee (he received $279,000).
In total, members of the Senate Committee on Banking, Housing and Urban Affairs, Senate Finance Committee and House Financial Services Committee received $5.2 million from TARP recipients in the 2007-2008 election cycle. President Obama collected at least $4.3 million from employees at these companies for his presidential campaign.”
So the whole time, Americans were being told that a few bad apples where responsible for the economic downturn, it in fact it seems the whole barrel of apple was rotten to the core.
While Americans were asked to foot the bill—for generations—to bail out Wall Street executives from their sub-prime, mortgage-mad, derivatives driven, un-regulated market—politicians from all parties lined up to feed at the trough—knowing full well that it was these same companies’ bad business practices that placed our financial system at systemic risk.
Sen. Christopher Dodd, who is being paid by taxpayers to oversee these institutions, should return the money on principle or resign from the committee.
In total, Dodd raised almost $9 million dollars in 07-08 for his failed Presidential run and successful Senate re-election campaign with $4,180,696 coming from persons involved in Securities and Investment Banking sectors, $1,278,241 from the Real Estate sector and $900,000 from commercial banking interests. Dodd also received $316, 994 from Citigroup Inc., and $223,478 from A.I.G. from 2003 to 2008, and was near the top of recipients of campaign cash from commercial banks who gave $570,294 to his campaign.
But Dodd was not alone on his committee. According to the C.R.P report “members of the Senate Committee on Banking, Housing and Urban Affairs, Senate Finance Committee and House Financial Services Committee received $5.2 million from TARP recipients in the 2007-2008 election cycle.”
Sen. Chuck Schumer and Sen. Hillary Clinton—in whose state most of this securities fraud took place—should return every cent to the employees of bailout companies, many of whom are now collecting unemployment checks. Now that’s some real direct economic stimulus. Why are American elections being financed by contributions of scammers and crooks looking to purchase favor with lawmakers?
With every scandal, the same politicians’ names keep popping up as receiving campaign cash from bankrupt companies, some begging for a bailout from the Congress. The pattern seems clear. Start a company, join a lobbying group, fund political contributions to key politicians on important committees who are in charge of oversight, and hope nobody catches you.
Madoff, Stanford, sub-prime, short selling, derivatives…different scams with similar playbooks. Wall Street stays one step ahead of legislators and regulators because of the politicians coming with hat in hand every election cycle to fund their million dollar re-election campaigns.
Every presidential and congressional campaign that received contributions from Madoff or Stanford or TARP companies, including President Obama, Sen. McCain, Secretary of State Hillary Clinton, Mitt Romney, Rudy Giuliani and Dodd, should be required to return contributions from these tainted sources. Taking money from people who defraud, con and steal investors’ dreams is unethical, to say the least.
That goes for all members of Congress who received campaign cash from JPMorgan, Wells Fargo, Citigroup, Lehman, GMAC, Freddie Mac, Fannie Mae or any of the hundreds of financial service companies now being bailed out with taxpayer dollar
According to campaign contribution reports, Candidate Obama received over $1 million from employees of Goldman Sachs and over $15 million from the Securities and Investment banking sectors for his 07-08’ Presidential run.
Somewhere in the timeline during last September’s economic free-fall, Dodd recalls a meeting with Treasury Sec. Paulson, Fed Reserve Chairman Ben Bernanke and “12 or 13 others” when top legislators were told they had 72 hours to save the economy. This meeting would bring about government intervention in the form of the T.A.R.P. legislation. Here is Sen. Dodd’s recollection of the fateful and historic meeting as told to Frontline.
“It's the economic equivalent of 9/11 in my view, having been here for both events, ... sitting in that room with Hank Paulson saying to us, in very measured tones, no hyperbole, no excessive adjectives, that unless you act, the financial system of this country and the world will melt down in a matter of days. There was literally a pause in that room where the oxygen left.”
“Literally -- I know I'm drawing too close of an analogy here given the lives lost on 9/11, but it's that kind of a moment. This is not some analyst. This is not some functionary at the Treasury. This is the chairman of the Federal Reserve Bank, the most important central bank in the world, announcing to the leadership, Republicans and Democrats of Congress, "Unless we act within days, the financial system will melt down." And so the next 13 days were historic here.”
“There are about 12 or 13 of us. It's the leadership, the Speaker [of the House Nancy Pelosi (D-CA.)], the Democratic leadership of the House, the Senate -- [Senate Majority Leader] Harry Reid [D-Nev.], of course; Dick Durbin [D-Ill.]; Chuck Schumer [D-N.Y.]; myself; Dick Shelby [R-Ala.], [Rep.] John Boehner [R-Ohio].” --Sen. Christopher Dodd from Frontline interview.
Let us take a closer look at this high level meeting to bailout the banks that took place just weeks before the 08’ election.
According to the C.R.P. report, Sen. Chris Dodd received $854,200 from various financial groups, including $570,294 from commercial banks in the 07-08’ election cycle.
-Speaker of House Nancy Pelosi received a paltry $15,600 from JPMorgan/Chase, $11,000 from both Citigroup and Goldman Sachs.
-Sen. Majority Leader Harry Reid received $71,500 in from JPMorgan/Chase and $47,350 from Citigroup.
-Alabama Sen. Dick Shelby who sits on the Senate Banking Committee got $91,200 from his top contributor; Citigroup, and $66,500 from JP Morgan/Chase.
-Senior Illinois Sen. Dick Durbin got $46,575 from Citigroup and $19,500 from Goldman Sachs.
-New York Sen. Chuck Schumer raked in $80,800 from Citigroup, $58,000 from Goldman Sachs, $57,000 from Morgan Stanley, $53,750 from Lehman, $50,250 from Merrill Lynch, $47,800 from JP Morgan Chase—raised over $1 million from Securities and Investment firms.
-Sen. Minority Leader Republican John Boehner got $14,300 from Morgan Stanley and $12,000 from Goldman Sachs.
These where the same people—our legislators and leadership who were charged with giving a blank check of $700 billion to companies who were funding their re-election campaigns. Can you spell conflict of interest? By rights lawmakers, including all Presidential campaigns--should return any money received from employees and management of these failed corporations they are legally responsible to regulate.
As one CRP report states, the bailout companies got a bang for the political buck. “The companies that have been awarded taxpayers' money from Congress's bailout bill spent $77 million on lobbying and $37 million on federal campaign contributions. The CRP estimates the return on their political investments: 258,449 percent.”
New Treasury Secretary Tim Geithner quietly banned further government lobbying by companies receiving government assistance. Smart move. Now if you can get some political accountability out of the lawmakers in Washington D.C., we might have a chance to bring confidence back in the markets and the complex legal framework already in place to protect investors and institutions.
KC Tribune
posted by madtom at 10:42 AM
0 Comments:
Post a Comment
<< Home