Financial Industry Money Flows To Sponsors Of Industry-Friendly Amendments

Members of the House Financial Services Committee have received, on average, $138,422 in campaign contributions from the financial services industry so far this year -- more than twice what non-committee members have taken in. And ten committee members who are cosponsors of two industry-friendly amendments received an average of about $200,000 from the financial sector.

"Financial services members in general receive a lot from the sector they regulate," said Taylor Lincoln, a researcher for Public Citizen, which on Tuesday published a report drawing attention to the money flow. "These members receive an extra lot."

It's the latest in a series of reports suggesting -- but not proving -- a direct connection between campaign contributions and legislation. Members of Congress never admit that campaign money affects lawmaking, though backers of campaign finance reform call the current system "corrosive" if not corrupt.

Public Citizen and other good-government groups are much more skeptical.

"People should ask themselves if there's a likelihood that these amendments would exist if it were consumer advocates giving hundreds of thousands of dollars to these members and the banks didn't make any contributions," said Lincoln.

The amendments in question, from Rep. Walt Minnick (D-Idaho) and Rep. Melissa Bean (D-Ill), would scrap the proposed Consumer Financial Protection Agency and forbid states from enforcing stricter financial regulations than the federal government's, respectively.

The Bean amendment was beaten back after a fight between Democrats on the committee. Minnick held off on introducing his amendment in committee reportedly because chairman Barney Frank (D-Mass.) objected.

It's up to the Rules Committee whether the amendments will come up on the House floor.

The top contributors to the members who sponsored the two amendments were the American Bankers Association, PricewaterhouseCoopers, and New York Life Insurance.

Not all the cosponsors of the two amendments received outsized amounts of money from the financial industry. Seven cosponsors who do not sit on the Financial Services Committee received less than $80,000 from the sector this year.

Comments

[wonderdog1942]

03:13 PM on 12/10/2009

It is better not to adopt any legislation than to adopt legislation that would give big banks even more ability to screw the public than they already have. Interesting how all the "states rights" advocates disappear when the issue is regulation of big business instead of abortion.

[seanparnell]

02:29 PM on 12/10/2009

This is just more of the discredited "reform" nonsense we've heard for years.

Of course these amendments would be introduced without contributions from the financial services industry. Has it escaped your attention that America is a sharply divided nation in regards to political matters? That's why we have 2 major and several smaller political parties - because people fundamentally disagree over what policies should be pursued.

Or do you really think that absent campaign contributions, Phil Gramm is going to start singing from the Public Citizen handbook on public policy issues? Get real - he, and tens of millions of Americans, just don't believe the same as you do. This "report" is nothing more than casual slander, borne from ideological narcissism that doesn't seem to understand that it's possible for people with good motives and rational minds to disagree with you.

Sean Parnell
President
Center for Competitive Politics
http://www.campaignfreedom.org

[rcozad]

12:13 PM on 12/10/2009

If a judge in any litigation acted in this manner he, or she, would be immediately impeached and disbarred. Why then do we allow the legislators that are crafting legislation that affects a particular industry to openly, and actively, accept bribes? The two situations are for me the same.You can not tell me that these amendments were in any way proposed to serve and protect the citizens of their districts. NOT ONE! This shameless corruption has become so entrenched and so common that it never even reaches the level of an ethics investigation. Every day I feel more and more disposed to the British system that calls for elections to be held when there is an issue that divides the house and the campaign is limited to a month or so not the year in year out campaigning that has become the norm for the US! We need to look closely at term limits and rules changes that accelerate the ethics probes ( preferably by a independent panel of judges) and swift removal from office if found guilty! Trust me, just one case and this bribery practice would cease!

[helonias]

12:00 PM on 12/10/2009

w h o r e s

[bighat]

11:19 AM on 12/10/2009

Yet we keep re electing the same people.

When will members of congress be required to only take donations from indiciduals residing in their district and not one dime from business.

[JohnRobey]

09:33 AM on 12/10/2009

She looks like a greedy little piglet.

[dtlewis]

04:47 PM on 12/10/2009

Looks like, walks like, quacks like....

[Billar]

04:49 PM on 12/09/2009

Feed these DINIOs gruel.

[Aerows]

04:14 PM on 12/09/2009

When we stop voting for the people that Wall Street tries to put in place, we will get different government. As it stands, we keep doing to the same thing and expect different results.

[LeftLeaner]

04:47 PM on 12/09/2009

Not all of us.

Why did I have enough sense to vote for Ralph Nader - with a long record of pubic protection actions and results.

[pamelalyn]

04:06 PM on 12/09/2009

As one commenter posted, "This is a surprise because?"

Sadly, it is no surprise to most Americans that the financial sector has undue influence on Capital Hill. That is why it is so very important that citizens contact their Congressperson and ask that they support
H.R.4173 - the Wall Street Reform and Consumer Protection Act of 2009.

http://www.opencongress.org/bill/111-h4173/show

This may be the average consumer's last chance.

[Rick Claypool]

03:33 PM on 12/09/2009

This is why it is crucial for the public to let Congress know that we need significant reform and regulation of the financial industry in order to prevent another economic crisis. The strong consumer protections in the bill going to the House floor this week, Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173), will significantly rein in the banking industry's predatory practices. Tell your rep YES to consumer protection and NO to amendments to weaken the bill at http://action.citizen.org/t/6693/campaign.jsp?campaign_KEY=27546.

[Wayne Walker]

02:50 PM on 12/09/2009

I certainly hope they understand the consequences of selling out. Every penny of my campaign contributions going forward will be used to defeat the ConservaDems/Corporate Whores, et. al., and to elect progressive Democrats. No more money to the Democratic Party. No more money to DSCC or DCCC. No more money to Obama PACs. I want be be certain that not one penny of my money is used to support those that seem to have forgotten that they represent the PEOPLE, not the corporations.

[FrozenNorthObserver]

02:34 PM on 12/09/2009

one Senator in 08 took in a record breaking $40mil from these same groups, Senator B. H. Obama.
http://www.opensecrets.org/industries/recips.php?ind=F&cycle=2008&recipdetail=A&mem=Y&sortorder=U

[edoxtator]

02:41 PM on 12/09/2009

It's OK. You can say Senator Barack Obama. We won't tell.

[research]

02:29 PM on 12/09/2009

OUTLAW All Contributions!

They are Obviously Bribery!

Bring Democracy to this US Plutocracy.

[JPHR]

02:11 PM on 12/09/2009

A thoroughly corrupt system disguised as a democracy

[01202009]

02:00 PM on 12/09/2009

This is a surprise because? Let's face it folks, the House of Representatives represents the interests of corporate America, not the people who *elect* them. The only way to stop this outrage is for people who vote to learn something about the process and vote for their own best interests. If voters go to the polls and vote for someone because they like the candidate's glasses this is what we get.

By the way. These critters are bought cheap. The same people doling out the dough are taking home millions in bonuses. Go figure.