It may not be a surprise to our readers that Wall Street financial companies played a significant role in influencing the vote in both the Senate and the House last week to use taxpayer money to bail out Wall Street via the Emergency Economic Stabilization Act of 2008. The Center for Responsive Politics has released two new reports on the relationship between the financial industries and members of Congress.
Last Wednesday, the Senate voted 74-25 in support of the bailout package. The Center for Responsive Politics report notes that “The finance, insurance and real estate sector has contributed twice as much money to senators who supported bailing out the struggling sector this week than those who opposed emergency legislation.” The report goes on to say:
“Overall, senators who supported the bailout have received an average of $3,986,723 from the finance sector since 1989–139 percent more than their opponents, who have received $1,671,029, on average. In the 2008 election cycle alone, the difference is even greater–379 percent–due largely to the number of pro-bailout senators who have run for president this year, including Barack Obama and John McCain. Excluding contributions that senators’ have raised for their presidential bids, those supporting the emergency package have collected 28 percent more from financial interests in the ’08 cycle than those who opposed it.”
There were a total of 39 Democrats and 34 Republicans in the Senate who voted for the bailout legislation. The Democrats in the Senate who voted for the bill have received on average “$4,364,409 over their careers from the finance, insurance and real estate (or FIRE) sector, and $1,675,088 in the current election cycle,” while the Republicans who backed the plan have received “an average of $3,377,369 from the finance sector in their careers and $1,192,133 in the 2008 cycle.”
On Friday, the House voted on the same bill with 263 Representatives voting in favor of the bailout. According to the Center for Responsive Politics, the 263 members of the House who voted for the bailout “have received an average of $833,077 since 1989 from the industries that were most eager to see the rescue bill passed.” The report goes on to say, “In the 2007-2008 election cycle alone, the finance sector has contributed at least $182,532 to congressman voting “yea” and $138,040 to those who voted “nay,” a difference of 32 percent.”
The executive director of the Center for Responsive Politics, Sheila Krumholz, said of the political influence of Wall Street in Congress:
“The lobbying effort on the bailout has been brief but intense. To make up for time they do not have, interest groups have undoubtedly capitalized on relationships they’ve built over many years. And in Congress, campaign contributions are an essential tool for building relationships.”
Unfortunately for the public, the major news media has almost completely ignored the role that this type of influence peddling played in last week’s Congressional decision.
Related posts:
- Resources on the Financial Crisis and the Wall Street Bail Out
- Billions in Political Contributions Bought Financial Deregulation that Led to Current Crisis
- Supporters of Bailout Received More Contributions from Banks and Securities
- Obama and Wall Street
- Legislators Drafting Health Care Legislation have Financial Ties to the Industry
