Bailout Money Given to Politicians as Campaign Contributions

[Undercurrent]

There was plenty of outrage on Capitol Hill last week over the executive bonuses paid out by AIG after getting federal bailout money. But another money trail could make voters just as angry: the campaign dollars to members of Congress from banks and firms that have received billions via the Troubled Asset Relief Program.

While a few big firms, such as Wells Fargo and JP Morgan Chase, have curtailed their campaign giving, others are quietly doling out cash to select members of Congress, particularly those who serve on committees that oversee TARP. In recent filings with the Federal Election Commission, the political action committee for Bank of America (which got $15 billion in bailout money) sent out $24,500 in the first two months of 2009, including $1,500 to House Majority Leader Steny Hoyer and another $15,000 to members of the House and Senate banking panels. Citigroup ($25 billion) dished out $29,620, including $2,500 to House GOPWhip Eric Cantor, who also got $10,000 from UBS which, while not a TARP recipient, got $5 billion in bailout funds as an AIG "counterparty." "This certainly appears to be a case of TARP funds being recycled into campaign contributions," says Brett Kappell, a D.C. lawyer who tracks donations. (A spokesman for Cantor did not respond to requests for comment. A spokeswoman for Hoyer said it's his "policy to accept legal contributions.")

The cash flow is already causing angst inside the Beltway. "The last thing I want to do is wake up one morning and see our PAC check being burned on C-Span," said one bank lobbyist, who asked not to be identified because of the issue's sensitivity. House Speaker Nancy Pelosi and House Financial Services chair Rep. Barney Frank both said recently they won't take donations from TARP recipients. But House Democratic fundraisers have quietly passed the word that the party's campaign committee will resume accepting them—but down the road, not right now. Said one fundraiser, who also requested anonymity, "These are treacherous waters."
http://www.newsweek.com/id/190363
via
http://www.huffingtonpost.com/

[Cirque du So-What]

1. The sound you hear...

is that of thousands of whetstones sharpening millions of pitchforks.

[The_Commonist]

4. Don't forget the torches!

[terisan]

2. This is the crux of the matter. Our government is corrupt-bipartisanly corrupt.

The quote from Steny Hoyer makes me ill. . Actually its from his "spokesperson." Hoyer doesn't even have the guts to say it himself.

[alsame]

5. Exactly. And this is one reason why I support

term limits for all elected officials.

[terisan]

6. I think you are right on term limits-they help limit the corruption. nt

[AngryAmish]

3. This comes as a surprise?

The point of giving money to politicians is to get stuff. It is an investment. These banks have gotten a lot of stuff from the government (they are spending our money) so they give to keep the money coming. This is why incumbents get most of the contributions.

I give a lot of money to politicians because I work in a highly regulated field. I want my guys in there making sure I am not legislated out of business.

[Runcible Spoon]

7. The elephant in the room nobody wants to come to terms with.

Sigh.

[chill_wind]

8. That's going to be a hard drug to kick.

Wall Street entities like GS have been heavily skewed toward Democrats for years. GS gave 75% to Dems in the 08 cycle. AIG gave *twice as much* to Dems as Repubs.

Goldman Sachs, one of Wall Street’s most prestigious investment banks, was also among the many banks in 2008 and 2009 to receive billions of dollars in taxpayer money to help it stay afloat. Like others in the securities industry, Goldman Sachs advises and invests in nearly every industry affected by federal legislation. The firm closely monitors issues including economic policy, trade and nearly all legislation that governs the financial sector. It has been a major proponent of privatizing Social Security as well as legislation that would essentially deregulate the investment banking/securities industry. The firm tends to give most of its money to Democrats. A number of high-ranking government officials in recent years have spent part of their careers at Goldman Sachs.

Cycle Total Dem Republicans % to Dems % to Repubs

2008 $5,842,471 $4,392,720 $1,439,411 75% 25%
2006 $3,502,866 $2,170,911 $1,294,005 62% 37%
2004 $6,428,438 $3,963,753 $2,446,185 62% 38%
2002 $3,513,035 $2,292,040 $1,219,995 65% 35%
2000 $4,432,977 $2,764,185 $1,662,292 62% 38%
1998 $1,938,166 $1,225,252 $683,914 63% 35%
1996 $1,816,563 $997,747 $816,316 55% 45%
1994 $1,026,235 $562,760 $462,675 55% 45%
1992 $1,660,310 $908,295 $751,515 55% 45%
1990 $717,621 $473,716 $243,905 66% 34%

TOTAL $30,878,682 $19,751,379 $11,020,213 64% 36%

(a lot more here on who gave and who got):

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x61119

"But House Democratic fundraisers have quietly passed the word that the party's campaign committee will resume accepting them—but down the road, not right now."

Right. Not right now while the whole country is watching..

[Runcible Spoon]

9. KICK.

[MarjorieG]

10. Obama is going to have tough time with this, in the midst of a bank meltdown.

Didn't he just issue something about lobbyists? Hard to be so principled now when the world had crashed.