Since Senators engaged in open extortion and bribery to enact Reid’s government-run healthcare plan, it is hardly newsworthy that Washington is riddled with Corruption. But the magnitude of sleaze is probably far greater than most people realize. There is a new study from a couple of academics at the University of Michigan, who found significant relationships between lobbying and bailout money, as well as a greater chance of getting bailouts depending on a bank’s ties with either the Federal Reserve or key members of Congress. Hopefully, people across America will draw the obvious conclusion and realize that big government is inherently corrupting, as discussed in this video. Reuters has the details on this latest example of big government and malfeasance:
U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday. Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan’s Ross School of Business. Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds. Political influence was most helpful for poorly performing banks, the study found. “Political connections play an important role in a firm’s access to capital,” Sosyura, a University of Michigan assistant professor of finance, said in a statement. Banks with an executive who sat on the board of a Federal Reserve Bank were 31 percent more likely to get bailouts through TARP’s Capital Purchase Program, the study showed. Banks with ties to a finance committee member were 26 percent more likely to get capital purchase program funds.
[…] This is true for bailout policy. […]
[…] This is true for bailout policy. […]
[…] This is true for bailout policy. […]
[…] policy, agricultural policy, foreign policy, health policy, trade policy, drug policy, and bailout policy. Or anything else involving politicians and their […]
[…] I was ignored, and I think the reason was corruption. Tim elaborated on this hypothesis in his […]
[…] consumidores. E considere a forma como as instituições financeiras politicamente conectadas levantam seu lado da mesa5 para receber brindes sem […]
[…] remind people that this doesn’t make me a fan of big companies. Too many large firms (in finance, health, tech, energy, manufacturing, autos, pharma, agriculture, etc) are far too willing to seek […]
[…] and breadth and height My soul can reach, for I am big and competition is a threat Better to have bailouts, subsidies, mandates, protectionism, and […]
[…] In other words, TARP was pure cronyism. Wall Street firms had “invested” in Washington by giving lots of contributions to politicians and TARP was their payoff. […]
[…] agriculture subsidies, reducing protectionism, shutting the Ex-Im Bank, reforming Social Security, ending bailouts) that will probably be disproportionately beneficial for those with low incomes, but those policies […]
[…] in 2009, I shared some academic research showing the unsavory link between lobbying expenditures and bailout cash […]
[…] in 2009, I shared some academic research showing the unsavory link between lobbying expenditures and bailout cash […]
[…] in 2009, I shared some academic research showing the unsavory link between lobbying expenditures and bailout cash […]
[…] in 2009, I shared some academic research showing the unsavory link between lobbying expenditures and bailout cash […]
[…] from serving consumers. Heck, just consider the way politically connected financial institutions tilt the playing field for unearned […]
[…] from serving consumers. Heck, just consider the way politically connected financial institutions tilt the playing field for unearned […]
[…] They also supported the sleazy TARP bailout. […]
[…] They also supported the sleazy TARP bailout. […]
[…] it the TARP bailout, which shielded Wall Street fatcats from capitalism? […]
[…] it the TARP bailout, which shielded Wall Street fatcats from capitalism? […]
[…] examine howbig financial firms pillaged taxpayersas part of the sleazy TARP […]
[…] The financial industry dispenses huge campaign contributions to both sides of the aisle, and thebailout was their payoff. Public employee unions, by contrast, give almost every penny of their money to Democrats, so […]
[…] very appropriate to target rich people who have undeserved wealth because of crony policies such as TARP and Ex-Im […]
[…] from the perspective of the big banks, they got a very good return on their campaign contributions (read Kevin Williamson if you want to get upset about this […]
[…] from the perspective of the big banks, they got a very good return on their campaign contributions (read Kevin Williamson if you want to get upset about this […]
[…] don’t forget the corrupt TARP giveaways to Wall Street, the handouts for GM (though at least we got some good parody from that farce), the […]
[…] The financial industry dispenses huge campaign contributions to both sides of the aisle, and thebailout was their payoff. Public employee unions, by contrast, give almost every penny of their money to Democrats, so […]
[…] The financial industry dispenses huge campaign contributions to both sides of the aisle, and the bailout was their payoff. Public employee unions, by contrast, give almost every penny of their money to Democrats, so […]
[…] approach would have recapitalized the banking system without the corruption, favoritism, and moral hazard that characterized the TARP bailout. "Which one of us is […]
[…] of TARP, such as moral hazard and capital malinvestment. But when I read stories about how political insiders (both in government and on Wall Street) manipulate the system for personal advant…, I get even more […]
[…] of TARP, such as moral hazard and capital malinvestment. But when I read stories about how political insiders (both in government and on Wall Street) manipulate the system for personal advant…, I want to go […]
Even if we take the less cynical view and assume those banks were more in ‘need’ of TARP funds, doesn’t it suggest that members of the Federal Reserve are, as measured in their own industry, terrible bankers?
So, corrupt or incompetent, they’re still in power.