Are Bailed-Out Banks Really Lobbying More?
Jul 31, 2020914 Shares913.7K Views
The Associated Press reported late Tuesdaythat recipients of Troubled Asset Relief Program bailout money are spending freely on lobbying Congress, while holding onto their government aid — but that’s not the whole story.
The AP noted that seven of the top 10 bailout beneficiaries spent more money on lobbying in the first quarter of 2009 than in the latter part of 2008, just after TARP began. But let’s take General Motors and AIG (which claims it’s merely “correct[ing] misinformation,” not lobbying) out of the picture for a moment and look at only the top 21 lending banks that got bailout money.
These are the same 21 banks that lent less moneyto ordinary Americans in February than they did in January, undermining TARP’s ostensible purpose. And interestingly enough, they’re also lobbying a bit lessthis year than they were last year.
These top 21 bailed-out banks spent $8.84 million on K Street representation during the first quarter of 2009, down from $8.95 million during the last quarter of 2008, according to a Washington Independent analysis of lobbying reports filed this week. While JP Morgan, Wells Fargo, and Capital One all increased their lobbying spending, less influence cash was spent by Citigroup, Bank of America, and American Express.
The overall decrease is slight enough — and total lobbying bills are still high enough — that the nation’s top banks can hardly be described as tightening their belts. But given that all 21 banks on the list had the explosive issue of executive compensation to lobby onduring the first quarter of this year, it’s surprising to see their expenditures not rocketing upwards.
Camilo Wood
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Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing.
Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers.
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