Posted by Todd Zywicki:
What Goes Around Comes Around:
http://volokh.com/archives/archive_2009_01_18-2009_01_24.shtml#1232722936
The Washington Times notes today that many of the recipients of
federal bailout funds are also major political donors:
Many of the large American companies that received billions of
taxpayer bailout dollars by pleading that they didn't have enough
money to lend to customers were, at the same time, spending
millions of dollars dispatching lobbyists to influence the federal
government.
A Washington Times review of lobbying disclosure reports found that
18 of the top 20 recipients of federal bailout money spent a
combined $12.2 million lobbying the White House, the Treasury
Department, Congress and federal agencies during the last quarter
of 2008.
For instance, the government bought $3.4 billion in American
Express Co. stock on Jan. 9 as part of an aid package. In the last
quarter of 2008, the company spent more than $1 million on federal
lobbying.
The print version of the story also included a chart that listed all
of the lobbying expenditures by TARP recipients, but I don't see that
chart in the on-line story. General Motors spent about $6 million in
lobbying funds over the last two quarters of 2008. Although that seems
like a lot of money, it is a drop in bucket compared to the payback
that they have received.
BB&T were notable (as is often the case) on the chart because they
made no lobbying expenditures (and my impression from what I've read
is that they apparently were a bank that was strong-armed into taking
TARP funds even though they didn't want them).
Meanwhile, the President of Merrill Lynch has [1]been fired from his
position at Bank of America as it has been reported that he
accelerated "year-end" executive bonuses to get them paid out before
the B of A merger became final--and subsequent request for government
TARP funds. He also spent $1.2 million to redecorate his office last
year. It really does make me wonder sometimes how these guys can sleep
at night.
Once the pork-barrel stimulus plan is finalized I expect we'll see a
whole new interesting chart on the links between political
contributions and stimulus expenditures.
References
1.
http://www.washingtontimes.com/news/2009/jan/23/thain-out-at-bofa-after-merrill-bonuses/
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