How Much Money Does Wall Street Spend on Lobbying and Campaign Contributions?

occupy-wall-street-political-cartoon-lobbyists

Political cartoon by Mike Luckovich, Atlanta Journal Constitution

A new report from Americans for Financial Reform provides a troubling window into the amount of cash pouring into Congress from Wall Street since the 2008 crisis -it’s over $2.7 million a day, and more than $3.7 million per member of Congress!

Wall Street Money in Washington,” is a 62-page examination of political spending, draws on a special data set compiled by the Center for Responsive Politics for AFR in order to provide a more precise look at financial industry spending than is otherwise possible.

Campaign Contributions: $1.2 billion. Individuals and entities associated with financial reported making $1,201,417,199 in contributions to federal candidates for office during this election cycle. The financial sector’s contributions were almost twice that of any other specific business sector identified in the data. Of the $688,150,613 in party-coded contributions by PACs and individuals associated with finance, 55% went to Republicans and 45% went to Democrats.

Five U.S. Senators and two House members were among the biggest Congressional recipients of financial sector contributions. Sen. Marco Rubio (R-FL) topped this list with $8,687,969. The other senators were Ted Cruz (R-TX), with $5,482,011; Charles Schumer (D-NY), with $5,345,563; Rob Portman (R-OH), with $4,158,259; Pat Toomey (R-PA). Members of the House of Representatives were led by House Speaker Paul Ryan (R-WI), with $5,727,069; and House Majority Leader Kevin McCarthy (R-CA), with $3,397,980.

Lobbying: $898 million. The financial industry reported spending a total of $897,949,264 on lobbying in 2015 and 2016. This puts the sector in – close – third place, behind the Health sector, which spent $1,022,907,176, and a category of “Miscellaneous Business,” a sector that that itself probably includes some Wall Street lobbying by business groups with a broader focus than only finance.

Since 2008, the financial services industry has spent more money on contributions and lobbying than it did before the crisis, and the total in this cycle is the highest yet. 

“The entire apparatus of government operates in an environment flooded with millions of dollars in Wall Street cash on a daily basis,” said Lisa Donner, executive director of Americans for Financial Reform. “If you want to understand why finance too often hurts consumers, investors and businesses far from Wall Street, take a look at these numbers.”

You can read the whole report on the Americans for Financial Reform website. 

 

ThrowBack Thursday: The Roots of the Mortgage Crisis

CRC recently stumbled across a copy of a 2007 report entitled “Sustainability, not attainability: An Examination of Nontraditional Residential Mortgage Lending Products and Practices.” The report included testimony from some companies like New Century Mortgage, who caused billions of dollars in damage to the economy, to say nothing of the individual impact on families who lost their homes. You can order a copy of the report from the CA Senate for $11.75.

Below, we include some choice quotes about the valuable services that companies like New Century Mortgage were providing, or that community advocates didn’t know what they were talking about when they asked for stronger consumer protections. Of course, it turned out the advocates were right, these mortgage would go bad, and our economy would implode as a result. Perhaps smart regulation isn’t so bad after all?  Especially when it comes to the largest asset that many American families will ever own?

Want to learn more about the cost of this crisis?  Check out some other CRC posts below:

NEW CFPB MORTGAGE RULES: WHY DO WE NEED THEM? PART 1

CITY OF LOS ANGELES LAWSUIT AGAINST CHASE, WELLS FARGO, CITIGROUP, AND BANK OF AMERICA

ONEWEST BANK FORECLOSURE TRACKER: HOW MANY FAMILIES ARE LOSING THEIR HOMES?

 

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