The Incestuous Relationship Between Bankers, Business and Congress

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The Incestuous Relationship Between Bankers, Business and Congress

The Incestuous Relationship Between Bankers, Business and Congress
Wed, 11/7/2012 - by Chris Paulus

Photo: Mark Wilson/Getty Images

If you look up the individual "Jon Corzine" on Wikipedia, the first sentence you encounter is “Jon Stevens Corzine is an American finance executive and political figure.”

Those two positions strung together in the same sentence may make some people uneasy, but the fact is that you can apply this description to many people in Congress. Looking closer, Jon Corzine may simply be the most poignant symbol of the incestuous relationship between bankers, business and Congress that is systemic in today's political system.

Recently, Jon Corzine — CEO of MF Global from 2010 to 2011, CEO of Goldman Sachs from 1994 to 1999, Senator of New Jersey from 2001 to 2006 and Governor of New Jersey from 2006 to 2010 — was subpoenaed before a House committee to answer questions regarding the loss of approximately $1.6 billion of citizens' money.

The "honorable" Jon Corzine, as his nametag so colorfully and inaccurately described him, claimed he did not know where the funds went. The House committee asked him, along with other MF Global executives: "Where is the money?” His response: “I don’t know.”

“OK,” replied the committee.

Could lawmakers' passivity possibly be attributed to the amount of money those committee members received from financial agencies and trading groups to keep their mouths shut? Given the evidence, it's a worthwhile question.

According to the Center for Responsive Politics, Committee chairman Spencer Bachus has received $262,177 from securities and investment firms, $78,677 of which was individual donations, the other $183,500 from PACs. He has also received $259,400 from commercial banks and $241,960 from insurance companies, a blend of PACs and individual contributions.

Open Secrets, the website of the Center for Responsive Politics, features a stunning chart demonstrating how the House Financial Services Committee as a whole has received an astonishing $11,425,875 from financial, real estate and insurance firms through PACs, and an additional $10,106,258 from individual contributions in the same fields.

But let's go deeper — to those with even more power.

Earlier this year on June 13, Jamie Dimon — CEO of JP Morgan Chase, Class A director of the board of directors of the New York Federal Reserve, who worked at and helped to create the Citigroup mega-bank before he left it in 1998 — faced a Senate hearing over JP Morgan's loss of more than $2 billion.

The Senate Committee on Banking, Housing and Urban Affairs has 22 members, and 18 of those members are either directly or indirectly invested in JP Morgan. In between the star-struck gazing, admiration and lax questions, only a handful of senators, including New Jersey Democrat Robert Menendez, managed to make Dimon slightly uncomfortable by asking difficult questions about the company's malfeasance.

Many of the committee members' aides are now lobbyists for JP Morgan or investment companies connected with them. For example, Naomi Camper, a committee chair aide from 2001-2004, and Kate Childress, former aide to New York Senator Charles Schumer, have been lobbyists for JP Morgan since 2008. JP Morgan has also helped fund the campaigns of a number of these same committee members.

According to the Center for Responsive Politics, Tim Johnson has received $81,335 from JP Morgan employees since 1998; Richard Shelby has received $136,771 from employees since 1990; and Mark Warner received $79,150 in 2012 alone. And one wonders why Dimon walked away without even a slap on the wrist.

Goldman Sachs, perhaps the most notorious of the investment banks on Wall Street and an emblem of the corruption of politics by big money that the Occupy Movement addresses, has also contributed to powerful committees and individuals in Congress. So let's name a few.

House Speaker John Boehner and House Majority Leader Eric Cantor, for example, have both received large sums from Goldman Sachs, all the while having tens of thousands of their own personal dollars invested in the company — about $32,500 between the two of them, to be exact.

Boehner has received about $29,500 while Cantor has received about $48,150 from the firm. And these two are just a fraction of the 19 congressional members who have invested in the company for a sum total of about $812,000; in return the company has paid out about $124,000 in contributions to those candidates.

This is no less true for vice presidential candidate Paul Ryan, who has approximately $8,000 invested in Goldman Sachs and has received double that, or about $15,800, in campaign contributions from them. Though this is nothing compared to his running mate, Mitt Romney, who received a couple of thousand shy of $1 million from Goldman for the 2012 election.

Although President Obama didn’t receive much from the major banks for the 2012 campaign (Wells Fargo was the only big donor, at $289,000), in 2008 he received $1,013,091 from Goldman Sachs, $809,000 from JP Morgan Chase, $736,771 from Citigroup and $512,232 from Morgan Stanley, along with staggering contributions from the University of California, Harvard University, Microsoft, Time Warner, Columbia University, IBM, and General Electric. It's likely the major banks considered their initial campaign contributions to Obama as a "long-term investment," one that has paid off immensely: not a single executive from any of the major banks has been criminally prosecuted for their illegal and reckless behavior in the economic meltdown.

And this is the point: both Democrats and Republicans have taken enormous sums from the country's biggest financial institutions, then repaid those institutions with policies that favor them. With congressional oversight committees under the thumb of the financial sector, banks have been allowed to pursue their fraudulent actions without repercussions. Finally, you don't need to pay money to get what you want; you just need to hire the right people for influential positions in government. Just look at Obama’s cabinet, and the cabinet of previous presidents:

Tim Geithner – Current Secretary of the Treasury, formerly director of Policy Development and Review at the IMF (2001 to 2003) and president of the New York Federal Reserve Bank. In November of 2007 he rejected an offer to become Citibank’s chief executive.

Henry Paulson – Secretary of the Treasury under George W. Bush, former CEO of Goldman Sachs (1974 to 2006) and a member of Council on Foreign Relations.

William Daley – Previous Chief of Staff under President Obama (2011-2012), COO of Amalgamated Bank of Chicago, Midwest Chairman of JP Morgan Chase since 2004 and member of Council on Foreign Relations.

Jacob Lew – Current Chief of Staff under Obama, COO of Citigroup’s Alternative Investments unit since 2006, and member of Council on Foreign Relations.

Eric Holder – Current Attorney General, previously worked for Covington & Burling LLP, an international law firm that has represented multinational corporations such as Phillip Morris, Halliburton and Xe Services (now known as Academi, formerly known as Blackwater - a company that changed its name twice to dodge a dismal public relations record).

It should come as no surprise, then, to learn that the (In)justice Department and the SEC has dropped all criminal charges against Goldman Sachs for its involvement with the housing market crisis, despite having $1.3 billion worth of subprime mortgage securities on their portfolio.

The Senate report also documented e-mails that referred to these securities as "junk" and "crap." The company was charged $550 million – a sum of money that is made in weeks.

The most naked example of how our political system has been robbed by the bankers and corporations is the fact that Green Party presidential candidate, Jill Stein, was arrested for attempting to enter the building where the second debate between Obama and Romney was being held.

Why should a woman who has consistently polled at 3% nationally and has raised enough money (yes, it is a criterion) to get on the ballot in 36 states not have a chance to have her voice heard with the heavy corporate hitters? Because the Commission on Presidential Debates, which sets the agenda for this nationally televised theater, accepts donations from corporations whose funds are contingent on the candidates only debating each other.

Certain topics are not raised in the debates, of course, among them climate change, banker bail-outs, campaign finance reform, Mexico's U.S.-funded drug war, drone strikes, the illegitimacy of the National Defense Authorization Act, the FISA act, the Patriot Act, our treatment of government whistleblowers, the ongoing war in Afghanistan, etc. There is no point debating the issues, after all, if your party duopoly is in agreement.

It's more than a revolving door we're talking about. It’s an incest fest. And it’s at times like these that I, and many others, ask: What Would Jesus Do? He explained to us in John 2:15-16 exactly what he would do: “in the temple courts He [Jesus] found men selling cattle, sheep, and doves, and others sitting at tables exchanging money. So he made a whip out of cords, and drove all from the temple area, both sheep and cattle; he scattered the coins of the money changers and overturned their tables. To those who sold doves he said: ‘get these out of here! how dare you turn my Father’s house into a market!'"

We, too, must drive the "money changers" out of our political temple before we can rationally and peacefully progress into the 21st century. This starts with a constitutional amendment to repeal the Citizens United ruling of 2010; the elimination of PACs and super-PACs; and imposing extreme limits, with complete transparency, on all political donations and contributions.

Either this, or we apply our savage consumerist mentality in the most practical sense to our political system: when something breaks, don’t fix it. Throw it out and get a new one.

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