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 readingInside Spending: How Citizens United restored the soft money system
While the Citizens United decision hasn’t necessarily led to more speech about public policy, it has restored the soft money system of politics.
Continue readingFixed Fortunes update: Big donors score as 113th Congress sunsets
Before shutting up shop on Tuesday, the least productive Congress in recent memory managed to produce some goodies for some very special interests.
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 readingGrimm tales: Money kept rolling into NY congressman pre-indictment
Big donors kept on funding Rep. Michael Grimm's campaign despite the New York Republicans legal and PR troubles.
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 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 readingA reaction to Orszag’s Citigroup move
I think that Harold Pollack, professor at the School of Social Service Administration at the University of Chicago, sums up a lot of feelings people are having about former Office of Management and Budget director Peter Orszag's move from government to the offices of Citigroup:
With the exception of the president himself, Orszag was arguably the most important economic policymaker in the entire Obama administration. Orszag’s OMB role, his fingertip familiarity with policy, the budget process, and congressional policymakers made him central to the stimulus and health reform efforts. He was President Obama’s right hand man for much of that work, and more besides. He accumulated the ultimate rolodex of people inside and outside government, within the United States, and perhaps globally, too. Continue reading
Peter Orszag and Obama’s ethics pledge
Peter Orszag, the former star director of the Office of Management and Budget (OMB) during President Barack Obama's first two years, is said to be in talks to join Citigroup. According to the Financial Times, "People familiar with the situation said Mr Orszag, who left the White House team in July, was likely to be offered a position dealing with clients and top government officials rather than running a business." If Orszag were to take such a position it would likely be complicated by an Executive Order signed by President Obama on his first full day in office.
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