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Thread: Banks With Political Ties Got Bailouts, Study Shows

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    Banks With Political Ties Got Bailouts, Study Shows

    Lobbyists, lobbyists everywhere

    Banks with political ties got bailouts, study shows | Reuters

    U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday.

    Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan's Ross School of Business.

    Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds.

    Political influence was most helpful for poorly performing banks, the study found.

    "Political connections play an important role in a firm's access to capital," Sosyura, a University of Michigan assistant professor of finance, said in a statement.

    Banks with an executive who sat on the board of a Federal Reserve Bank were 31 percent more likely to get bailouts through TARP's Capital Purchase Program, the study showed. Banks with ties to a finance committee member were 26 percent more likely to get capital purchase program funds.

    Scott Talbott, a senior vice president with industry lobbying group The Financial Services Roundtable, said the study was skewed because it did not exclude nine of the largest banks that were "strongly asked" by the government to take bailouts.

    Those banks included Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N), and Morgan Stanley (MS.N) -- all of which repaid their bailouts in June.

    Bank of America Co (BAC.N) and Citigroup Inc (C.N) more recently announced plans to pay back taxpayers.

    Talbott also noted that $116 billion has been repaid with interest.

    "This demonstrates the banks were excellent stewards of the taxpayer's money," Talbott said.

    But a watchdog for the government's bailout, the special inspector general for TARP, said last month that the broader $700 billion bailout program "almost certainly" will result in an overall loss for taxpayers.

    President Obama said in October that despite the bailout, there was still too little credit flowing to small businesses.
    The Prof

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    Some observations:

    1. Gosh, just yesterday George Mason University reported that a study conducted by its Mercatus Center found, after looking at 157 billion of STIMULUS funds and doing a simple tally, that "there was no statistical correlation between the amount of money a district got and its income or unemployment rate."

    2. Indeed, not only was STIMULUS cash "awarded without regard to how badly an area was suffering from job losses," it was allocated such that "Democratic districts received 1.89 times more money than GOP districts."

    3. It appears Ms Pelosi and her apparatchiks in lower parliament had more on their mendacious minds than mere economics when they put together those prodigious pounds of pork.

    4. George Mason found that "far more stimulus money went to higher-income areas than lower-income areas."

    5. Lobbyists, lobbyists everywhere.

    6. Never has a White House been so OWNED by billionaire bagboys.

    7. TRILLIONS literally in bonuses and bailouts to bloated bunglers, bankrupts and bums.

    8. With nary a penny of accountability.

    9. Where's the LENDING?

    10. First the bankers and Wall Street.

    11. Then the autos and UAW.

    12. Now, insurance companies and phrma.

    13. It's obscene.

    14. Lobbyists have totally leveraged this leadership.

    15. No wonder the CBC and Congressman DeFazio begrudge Tim Geithner, AIG and the Fed so much umbrage.

    16. Geithner not only grandfathered those grotesque AIG BONUSES.

    17. The Tax-Cheat-In-Charge-At-IRS also guaranteed all AIG obligations in full.

    18. Backed as always by the tapped out taxpayer.

    19. You bailed out all the bigwigs with bundles, with billions, Barack Obama, folks on the left and right fulminate in conformity.

    20. But you've done NOTHING for the little guy.

    21. You didn't even BEGIN to address JOBS until your dumb summit in December.

    22. You've PRIVATIZED the gains of the megacorps, President Oblivious, but you've SOCIALIZED their losses.

    23. Your own Inspector General for TARP labels it a LEMON.

    24. Banks with political ties get bailouts, stimulus money goes mostly to wealthy democrat districts, health care turns out to be a multi trillion dollar giveaway to big insurance and phrma...

    25. Lobbyists, lobbyists everywhere.

    The Prof
    Last edited by The Prof; 12-23-09 at 08:56 PM.

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    1: Paragraphs
    2: And sentences
    3: are good.
    We became a great nation not because we are a nation of cynics. We became a great nation because we are a nation of believers - Lindsey Graham

    Quote Originally Posted by Fiddytree View Post
    Uh oh Megyn...your vagina witchcraft is about ready to be exposed.

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    so are honest and effective govt

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    I've looked into this, and wanna know which party has typically aways gotten the bulk of the political contributions from the banks??

    Whichever one happens to be in power (or about to be in power) at the time?

    The banks are no dummies. They make big contributions to whomever is the chairman (or about to be) of the finance and banking committees.

    Nobody's clean. (especially the prof )

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    Quote Originally Posted by Redress View Post
    1: Paragraphs
    2: And sentences
    3: are good.
    I like prof's posting style. There's always the ignore feature.
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    Quote Originally Posted by hazlnut View Post
    I've looked into this, and wanna know which party has typically aways gotten the bulk of the political contributions from the banks??

    Whichever one happens to be in power (or about to be in power) at the time?

    The banks are no dummies. They make big contributions to whomever is the chairman (or about to be) of the finance and banking committees.

    Nobody's clean. (especially the prof )
    Working from memory(ie, no sources for this), the banking industry is pretty uniform in it's contributions.

    This story to me is kinda silly. Banks that pressed for more help got more help. How corrupt...
    We became a great nation not because we are a nation of cynics. We became a great nation because we are a nation of believers - Lindsey Graham

    Quote Originally Posted by Fiddytree View Post
    Uh oh Megyn...your vagina witchcraft is about ready to be exposed.

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    In other breaking news:

    Politicians tend to favor political allies.

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    Quote Originally Posted by Redress View Post
    Working from memory(ie, no sources for this), the banking industry is pretty uniform in it's contributions.

    This story to me is kinda silly. Banks that pressed for more help got more help. How corrupt...
    That's basically it.
    If you notice something good in yourself, give credit to God, not to yourself, but be certain the evil you commit is always your own and yours to acknowledge.

    St. Benedict

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    Re: Banks With Political Ties Got Bailouts, Study Shows

    Quote Originally Posted by idk View Post
    In other breaking news:

    Politicians tend to favor political allies.
    Oh, but we were promised all this hope-n-change. What happened to that?
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

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