house_fsc_fire_contributions_2009The short answer: Key members of Congress are owned by the financial services group’s lobbyists.

The longer answer: Lobbyists from the financial industry have paid hundreds of millions to Congress, the Bush and Obama administrations. (See yesterday’s Total Campaign Contributions/Lobbying by TARP Recipients)

Virtually all key Congressional members and senators on committees overseeing finances and banking are owned by the industry — they are Bought and Paid For.

This is easy to confirm in black-and-white. See for yourself: here, here, here, here, here and here.

Manhattan Institute senior fellow Nicole Gelinas says:

The too-big-to-fail financial industry has been good to elected officials and former elected officials of both parties over its 25-year life span

And economic historian Niall Ferguson says:

Guess which institutions are among the biggest lobbyists and campaign-finance contributors? Surprise! None other than the TBTFs [too big to fails].

No wonder two powerful congressmen said that banks run Congress.

And they are not alone,  Two leading IMF officials, the former Vice President of the Dallas Federal Reserve, and the President of the Kansas City Federal Reserve have each observed that the United States is controlled by a financial oligarchy.

There are obvious exceptions: Ron Paul, Alan Grayson, and others — many of whom are independently wealthy — have resisted the siren call of lobbyists dirty money.

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Hat Tip: Washingtons Blog

Sources:
Top Financial Services Committee Members Rely Heavily On Finance Campaign Contributions
Paul Blumenthal
Sunlight Foundation, 10/09/09 @ 2:33 pm

http://blog.sunlightfoundation.com/2009/10/09/top-financial-services-committee-members-rely-heavily-on-finance-campaign-contributions/

TARP Recipients Paid Out $114 Million for Politicking Last Year
Open Secret.Org February 4, 2009 9:52 AM

http://www.opensecrets.org/news/2009/02/tarp-recipients-paid-out-114-m.html

Congress Helped Banks Defang Key Rule
SUSAN PULLIAM and TOM MCGINTY
WSJ, June 3, 2009

http://online.wsj.com/article/SB124396078596677535.html

Experts On Third World Banana Republics: The U.S. has Become a Third World Banana Republic
Washingtons Blog, March 27, 2009

http://www.washingtonsblog.com/2009/03/experts-on-third-world-banana-republics.html

Category: Bailouts, Corporate Management, Politics

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “Why Financial Reform Died: “Banks Run Congress””

  1. Paul Jones says:

    Keep spreading the word.

    We may need a nation-wide strike to salvage the 21st Century, and for that we need numbers.

  2. globaleyes says:

    Bailout Nation laid out the rationale for financial reform. However, today’s post speaks directly to the people impeding reform. I hope they’re listening because…

    I don’t want Bailout Nation to morph into Flameout Nation.

    I like America.

    bonus: never underestimate The Fed’s ability to squeeze another boom out of the economy.

  3. jc says:

    They picked a chick for 1/2 the prize! What are the odds of that?

  4. pj says:

    Both the winners were the 50:1 odds that you posted about.

  5. jc says:

    “It’s an accounting game,” said Richard Bove, an analyst at Rochdale Securities Inc. in Lutz, Florida. “The deeper you get into the subject, the more items you find that are impossible to determine, and therefore it becomes a give up. Whatever they want to show, they show.”

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aPz0hsBTTR4A

  6. Bruce in Tn says:

    Like the fact that you’ve picked the two significant villains in this mess to rail about. Don’t give it up..but I wouldn’t be surprised if you don’t find that things get a little odd for you in the near future if you stay on this theme.

    Hope you don’t quit.

  7. Moss says:

    This is what we need to know. It is no longer acceptable to let the oligarchy feed us what they want us to know. I just heard Yardeni say the whole thing was due to the mark-to-market accounting mistake.
    Wesbury is claiming the same thing. Since that has now been ‘corrected’ all is well. I wonder who pushed that, forced FASB to suspend it.

  8. number2son says:

    ironic? … No, Barry. I rather think it is nauseating.

  9. DeDude says:

    Look at the numbers in that diagram, the larget amount is 270K. I have never seen a clearer argument for public campaign financing. Even if we gave 270K to each of the 12 members, it would only come to 3.3 million. Compare that to the cost of the bailout. Talk about penny wise and pound foolish. We should offer each housemember and their main challenger 1 million for their campaign on the condition that they do not take any money from lobbyists. Those that refuse should be forced to start every campaign speech with a public disclosure stating all the companies and industry groups that are funding their campaign.

  10. [...] Financial Reform Died: “Banks Run Congress” (BigPicture) Key members of Congress are owned by the financial services group’s lobbyists who have paid [...]