Bailout Recipients Spend on Lobbying

By Barbara Barrett, McClatchy/tribune News

As Congress looks at ways to tighten regulations on financial institutions, some of the biggest recipients of the government's $700 billion bailout have spent substantial amounts of money on influencing legislators.

Bank of America, for example, has spent roughly $1.5 million this year lobbying on Capitol Hill.

The bank, which has received $45 billion in taxpayer bailout money from the federal Troubled Asset Relief Program, has worked to sway lawmakers on more than two dozen pieces of legislation in the House and Senate.

Other financial institutions that received TARP funds also are lobbying lawmakers. Among them, Citigroup spent $3 million so far this year, and Goldman Sachs spent $1.3 million. JPMorgan Chase spent nearly $1.8 million on lobbying in the latest quarter and $1.3 million in the first quarter. It repaid the $25 billion in bailout loans it received.

Among non-financial firms, automaker General Motors again was one of the biggest spenders, according to the mandatory disclosure reports filed with Congress covering the April-June period. GM spent about $2.8 million on lobbying Congress and the federal government in the second quarter and roughly that much in the first quarter.

Bank of America wants flexibility on spending bailout funds and also wants to fend off restrictions on executive compensation, home mortgage lending and credit card fees.

The bank also is lobbying on a consumer rights bill, on student lending issues, on a bill that would have allowed bankruptcy judges to alter mortgages and on a proposed federal regulatory oversight agency.

Bank of America's lobbying spending since January, however, is down from the $2.3 million it spent in the first half of 2008.

"We're cutting expenses across the company, including lobbying expenses," said Bank of America spokeswoman Shirley Norton.

It hasn't said when it plans to pay the TARP money back, though Chief Executive Ken Lewis told analysts last week that he hopes it would be "sooner rather than later."

Critics say that until the bank and other financial institutions repay taxpayers' money from TARP funds, they should steer clear of spending money to spread influence.

"While these companies continue to count their taxpayer cash, they're using their lobbying against critical financial reform," said Ed Mierzwinski, consumer program director at Public Interest Research Group.

"They should not be allowed to lobby," said Craig Holman, a government affairs lobbyist for Public Citizen, a nonprofit advocacy group that accepts neither public nor corporate dollars.

"As long as they hold on to a very substantial portion of public funds and are publicly owned essentially, they should not be using any of their funds for lobbying purposes or campaign contributions," he said. "And you'll find Bank of America is doing both."

The bank and its employees have given $127,000 in campaign contributions in the first half of this year, according to the Center for Responsive Politics, a nonpartisan Washington group that tracks political spending.

Norton said the bank's accountants keep taxpayer funding separate from the private dollars it uses on lobbying expenses.

"We don't use TARP funds," Norton said. "We're very sensitive to the issue of using government funds."

A service of YellowBrix, Inc.

Article Source: 
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Posted : Thursday 23 July 2009 10:02 | FinReg21 Editor

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Saturday 25 February 2012 | min min

Best Ladies High Heel

Welcome To Best Ladies High Heel Store Online!

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