If you watched or heard about the bank CEOs appearing before Congress, I think you will agree that this is one big dog and pony show where CEOs set there meekly and have members of Congress heap insults on them for not following guidelines that were never put in place by Congress. 

While this makes for entertaining news and a lot of people are cheering on the roasting of bank executives, is this real or is it just a show by Congress to cover up their own complicity in the financial meltdown? I for one am not buying. This is ample evidence that Congress had as much a part in the financial meltdown as the banks. You may also note that when Congress authorized the original 700 billion dollar bank bailout that there were no strings attached. When you compare that to the upfront grilling that the car makers received when they came to Washington with their hat out, many people started to smell something fishy. 

I think the real answer to this question can be found at OpenSecrets.org.  On this web site you can track campaign contributions from different industries and groups to political parties and candidates. Below is a screen print of the top 10 campaign donors by industry: 

OpenSecrets.org Top 50 Campaign Donors by Industry 

Surprisingly to me the number one group is retired people. I guess that explains Social Security. Number two is lawyers (tort reform anyone?) and number three is Securities/Invest. That is our friends from Wall Street. Open Secrets lists the following description for the Securities/Invest group: 

 “Stockbrokers, brokerage houses and bond dealers give the bulk of campaign dollars in this politically influential industry, which also includes commodities dealers and exchanges, investment banking houses, stock exchanges and venture capital firms. Between 1996 and 2004, the majority of donations from the securities and investment industry to federal candidates and parties went to the GOP, but the industry changed its tune in 2006, giving 53 percent of donations to Democratic candidates and parties. The shift may reflect the industry’s efforts to maintain political clout with the new Democratic Congress. Security and investment companies contributed nearly $65 million to federal campaigns in 2006. Top contributors in 2006 included investment bankers Goldman Sachs, UBS AG and Morgan Stanley.” 

Oh look! There is Goldman Sachs and Morgan Stanley, what a surprise. Number four is Real Estate, and take note here what the description for Real Estate is:  

“ Real estate agents and developers give most of the political contributions from this industry, which looks to Congress on policy matters ranging from building and transportation costs to taxes and environmental legislation. The industry also includes building and parking lot operators and managers, mortgage bankers and brokers, mobile home dealers and parks, and title insurance companies.”  

Ahhh, mortgage bankers, brokers, title insurance companies, didn't they profit pretty well from the real estate market in the last few years? Didn't lawmakers crow about how many more homeowners there have been in the last few years when it came time for elections? Number six is Education, and doesn't the new stimulus bill have a lot of money in it for education? Of course the money that is going to education, it will all go to fixing the schools and helping kids do better, won't it? 

Now jump a little farther down the list and at number twelve we find all those Liberal Progressive pressure groups such as MoveOn.org. And then at fifteen we see commercial banks. They may not be in the top ten but they are up there in terms of campaign contributions. The top contributors to this group are American Bankers Association, Citigroup, JP Morgan Chase, and Bank of America. 

Commercial Banks: Background 

Finally at the low low position of number thirty-five are the automakers. No wonder Congress was so much harder on them than on the banks… 

Can we really trust these hearings? Can we really trust the government to look after our best interest, when it is in their interest to support their campaign donors? 

So, anyone for campaign finance reform? I mean real reform, we need to have public financed campaigns and eliminate the influence pedaling in the Government. In addition, former members of Congress or a Presidential administration should be barred from all lobbying activities for at least 6 years from when they leave office. So far it looks for like business as usual than change we can believe in  

 - Thomas Paine 2 

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