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Blair Bowie

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Disempowered Bankers Start Super PAC, Reveal Plans for World Domination

Posted: 04/06/2012 11:02 am

Members of the American Bankers Association recently announced that after years of being ignored in the halls of power, the industry will at last be creating its own super PAC to serve as its proverbial "big stick."

For too long, the banking industry has been stuck at 13 on the list of industries giving the most to members of Congress, drowned out by such vehemently anti-banking interests as "Misc. Finance" (12), "Lobbyists" (7), "Real Estate" (5), and "Securities and Investment" (3).

American Banker editor-at-large Barbara Rehm writes, "Frustrated by a lack of political power and fed up with blindly donating to politicians who consistently vote against the industry's interests, a handful of leaders are determined to shake things up."

While I am highly skeptical of the sentiment that "Congress is not afraid of bankers," given that banking lobbyists outnumber banking reform advocates 25-1 and that the Chairman of the Senate Financial Services Subommittee seems to believe that "the banks own the place," the most ridiculous thing about this announcement may just be the bankers' willingness to reveal their strategy for skirting the non-coordination rules.

The Supreme Court and FEC explicitly prohibit Super PACs from coordinating with candidates and their campaigns. I generally interpret this to mean that having a direct conversation with a candidate is a violation of the rules. Yet Matt Packard, the Super PAC's chairman, is apparently quite excited about using his new stick in that context, "If someone says I am going to give your opponent $5,000 or $10,000, you might say, 'Yea, okay'. But if you say the bankers are going to put in $10,000 or $500,000 or $1 million into your opponent's campaign, that starts to draw some attention."

When is Packard imagining himself having this conversation and what will he be asking for to call off the hounds? This statement speaks volumes about how the industry thinks about its involvement in politics.

Note too that Packard says they may be directing money "into your opponent's campaign." He means that in the same way that one might give to Restore Our Future to support Romney right? Nope. While the coordination rules are twisted enough when it comes to candidate specific super PACs, Friends of Traditional Banking plans to go even further. The independent expenditure-only committee, according to Rehm's description, will exist not to "touch the money," but to direct it to the candidate's actual campaigns.

This is starting to feel like the scene where the Bond villain reveals his whole plan for world domination. Even with a feckless FEC on the beat, Friends of Traditional Banking seems to be inviting federal investigation.

Rehm reports that the first thing prospective donors have been asking Utah Bankers Association president Howard Headlee is, "Is this legal?" Luckily, Headlee seems to have a Trevor Potter button for that.

Correction: A previous version of this post incorrectly stated that the American Bankers Association created Friends of Traditional Banking. It is not part of this effort.

 

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barrada nicto
Optimism is necessary.
07:55 AM on 04/08/2012
Yet another reason for large enough government and plenty of regulation.
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01:20 AM on 04/08/2012
The banksters have robbed this world on their fiat money scam. What has happen in Greece will happen here, as the banksters thrist (greed) will never end. It would be great if the banksters were disempowered but that is anything but the truth, have any of these miscreants gone to jail? What do the financial elite actully produce? Fraudulent paper pushers is what they have become, they produce zero value to this world, as they use their monoploy money to seize real assets for pennies on the dollar and the real joke is because they think that as they shafting those dumb muppets they are somehow superior to the average sap!
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07:22 PM on 04/07/2012
It is no longer a question of "if" there will be a huge scandal but "when" and "who" gets caught/blamed.
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DevonTexas
Eternal Optimism
07:04 PM on 04/07/2012
"Disempowered Bankers Start Super PAC, Reveal Plans for World Domination"

Pinky: "So what're we going to do now, Brain?"
Brain: "We're going to take over the World!"
Wib
Liberal former Marine who loves fly fishing and is
06:16 PM on 04/07/2012
Just one more reason to get money out of politics and to very strictly regulate these banks that brought down the world's economy and which wish to keep their stranglehold on the economy. Also another reason to smash them into the smallest possible pieces so they will never again be "too big to fail." The big hoot about this is that they obviously own Congress and everyone knows it. They just want to try to hide that ownership.
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Tom S Cedar Mill
This ain't no party, this ain't no disco.
09:49 AM on 04/07/2012
They don't even pretend to be influencing Congress to act for the betterment of the country - just wanting to suck ever more money from the bottom of society to the top.
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DevonTexas
Eternal Optimism
07:05 PM on 04/07/2012
All pretense is off since the curtain's been pulled back. Thanks SCOTUS.
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07:21 PM on 04/07/2012
Well said.
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sonoflars
Growing old is mandatory, growing up is optional
08:01 AM on 04/07/2012
What this article says is that the banking industry is upset because they are unable to corrupt the political systems as effectively as other industries do? Think about it. For those of us who were born in the 1940s and 1950s, we were led to believe that America was a shining beacon for the world. We were a representative democracy where the American dream was possible and individuals had a place in the political process. It was probably BS then and it's certainly BS now. We have become a fascist nation with a government that represents corporations. But, I guess that's OK because the Supreme Court and Mitt believe that they are people too.... More BS.
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DevonTexas
Eternal Optimism
07:06 PM on 04/07/2012
F&F for common sense and historical perspective.
05:46 AM on 04/07/2012
Best advice stay away from the large banks unless you are financially loaded.
tonybfine
fractional reserve lending is counterfeiting
03:48 AM on 04/07/2012
This is a smokescreen. The bankers already control everything - decide what wars we will have and so forth. This is laughable.
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03:10 AM on 04/07/2012
The Obama Administration would simply laugh at the small-bank lobby PAC and then tell voters they don't listen lobbyists.

Meanwhile TBTF still exists unless Glass-Steagall is made a condition for Obama's re-election.
05:49 PM on 04/07/2012
More than ever, the above article shows that we really need to restore the Glass-Steagall legislation ASAP. These banks have far too much power, and have done terrible harm to the US economy - and they don't give a damn.
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07:19 PM on 04/07/2012
Yes, but w/o the loophole that gave the merging entities two years to get the bill thrown out the first time.
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BigBearcatBill
This is the real Bearcat - a Binturong
11:16 PM on 04/06/2012
for all we know they will get nuclear weapons on the terrorist market places trying to buy off Russian generals to get one, then we will have the real Goldfinger from the James Bond movie happening for real when they blow up Fort Knox to corner the non-radioactive gold market, as in the movie plot to conaminate the gold in it rendering it useless due to radioactivity. I bet half of those Bond movie plots are being considered by slime balls and republican leaders.
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anonymous67
07:32 PM on 04/06/2012
"...inviting federal investigation." Yeah, in our dreams. Wall Street OWNS this government -- six banks wield more power than all American voters.

The American people wished their votes still mattered -- but they don't. Money and greed drive our government and representatives -- our government is corrupt.

Somehow we must get money, corporations and lobbyists out of government -- and return it to the people. And while we contemplate a second American Revolution and spilling the blood of patriots, send a "thank-you" to the US Supreme Court.
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LA Crystal
12:49 AM on 04/09/2012
If all of us keyboard warriors got on the Move to Amend bandwagon - isn't that the one designed to 'fix' the SCOTUS 'corporations are people, my friend' decision re Citizens United? - and get back at least some control in this crazy scheme we're still trying to call a fair election process.

The other big movement I'd love to see is people just skipping over the political advertising. That is where a lot of the campaign contributions go - to buy airtime - and that is why the press isn't interested in keeping us truly informed or helping with any reform of campaign finance. They benefit far too much from the status quo. No matter how much money they spend, if the citizens didn't allow that to sway their votes, it wouldn't be as powerful. Campaigns do need money to pay for the candidate traveling to connect with voters and to get their message out. However it's gone beyond insane.

Something has to give here because it's a ridiculous game and the only winners are the wealthy and powerful. If we don't stand up, we will deserve to lose it.
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fairwitness
Avid Ignoramian
04:15 PM on 04/06/2012
And why wouldn't they think they can overpower the system with money? They can. And they are.
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04:00 PM on 04/06/2012
When my child acts this spoiled and petulent, I give him a spanking.
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DevonTexas
Eternal Optimism
07:08 PM on 04/07/2012
and use a Glass-Steagal.
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01:39 PM on 04/06/2012
Pinky ask Brain what are we going to do today? The same thing we do everyday take over the world Pinky!!
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DevonTexas
Eternal Optimism
07:09 PM on 04/07/2012
whoops. I didn't read down this far before I commented. You got there first and more correctly quoted.. Thanks.