Why did AIG take the fall for the 2008 financial crisis while other big banks survived just fine?
Continue readingFixed Fortunes: Why Washington likes big banks
Since the 1990s, Washington’s unspoken preference has been for banks and other financial institutions to get ever bigger, and it’s acted accordingly, making life easier for giants while hobbling the little guy.
Continue readingFixed Fortunes: Biggest corporate political interests spend billions, get trillions
Between 2007-2012, America’s most politically active corporations spent $5.8 billion on federal lobbying and campaign contributions. A Sunlight Foundation analysis suggests, however, that what they gave pales compared to what they got: $4.4 trillion in federal benefits.
Continue readingWhat the banks’ three-year war on Dodd-Frank looks like
Graphics by Ben Chartoff and Amy Cesal. Network analysis by Alexander Furnas. In the three years since President Barack Obama signed the Dodd–Frank Wall Street Reform and Consumer Protection Act, federal regulators charged with implementing it have opened their doors to the biggest banks over and over again – 14 times as frequently as they have to representatives of consumer and pro-financial reform groups, a new Sunlight Foundation analysis finds. By most accounts, the banks’ besiege-the-regulators strategy has yielded rich rewards in sapping, slowing, and stymieing regulations intended to prevent another massive financial crisis. The emerging consensus is that Dodd-Frank implementation is limping, while the big banks are poised to return to being the most profitable industry in the U.S. Sunlight’s analysis is based on logs of Dodd-Frank meetings at the Commodities Futures Trading Commission, the Treasury, and the Federal Reserve Board., available through Sunlight’s Dodd-Frank Meetings Tracker. Because of problems with data quality and comprehensiveness, we had to exclude two other regulatory agencies (the Securities and Exchange Commission and the Federal Deposit Insurance Commission). And because of the time involved in data cleaning, we also excluded 22 percent of reported meetings – those that did not include “active” players. (By “active” we mean organizations that showed up at least five times in meeting logs.) For more on the data, see our methodology section at the end of this post, and read our companion piece, “Dodd-Frank meeting data need improvement.” Still, the imbalances our analysis reveals are so overwhelming that we can be confident that they are not merely a feature of the reporting practices.
Continue readingThe bigger the bank, the higher the complaint rate
The bigger the bank, the higher the rate of consumer complaints. That is the general pattern of a new Sunlight Foundation analysis of just-released consumer complaint data from the Consumer Financial Protection Bureau (CFPB). The relationship is hardly surprising. The biggest banks consistently score the worst on surveys of customer satisfaction. The most recent survey found Bank of America with the lowest customer satisfaction rate. We find Bank of America to have the second highest rate of complaints, trailing only Capital One, a major issuer of credit cards. Capital One accounts for 21.3% (4,181 of 19,603) of credit card complaints in the CFPB data.
Continue readingShareholders: The Next Transparency Advocates
A new breed of transparency advocate is making itself heard this week, taking to the streets and to corporate boardrooms... View Article
Continue readingInfluence Explored: Coakely Sues Big, Influential Banks
Massachusetts Attorney General Martha Coakley filed a lawsuit yesterday against five major U.S. banks for violating the state’s laws to... View Article
Continue readingSix Banks that Benefited Most from Fed’s Sweetheart Lending Were Big Political Players
On Sunday, Bloomberg News reported on an estimated $13 billion worth of income that banks gained by taking advantage of... View Article
Continue readingInfluence Explored: The political ties behind Zuccotti Park
It’s well known by now that the Occupy Wall Street protesters are occupying Zuccotti park – a park just a... View Article
Continue readingLaw professors push for corporations to disclose political spending
With corporate political spending--some of it secret--expected to explode in the 2012 election cycle, a group of law professors is petitioning the U.S. Securities and Exchange Commission (SEC) to make a formal policy requiring corporations to disclose such expenditures to shareholders and the public.
“Disclosure of corporate political spending is necessary not only because shareholders are interested in receiving such information, but also because such information is necessary for corporate accountability and oversight mechanisms to work,” reads the petition, which is headed by Lucian A. Bebchuk of Harvard Law School and Robert J. Jackson, Jr of Columbia Law School ...
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