Saturday, January 8, 2011

From MSNBC

How Wall St. Execs Bankrolled GOP Victory

Hedge fund moguls donated $10 million, gained key House allies to head off financial reforms


 By Peter Stone, Center for Public Integrity, and Michael Isikoff, NBC News

 A small network of hedge fund executives pumped at least $10 million into Republican campaign committees and allied groups before November’s elections, helping bankroll GOP victories that this week will change the balance of power in Washington, according to a review of campaign records and interviews with industry insiders by the Center for Public Integrity and NBC News.

Bitterly opposed to President Barack Obama’s economic and regulatory policies — including proposals to increase taxes on some of their profits — top Wall Street hedge fund moguls were unusually energized during last year’s election. They held multiple fundraisers and coordinated strategy to direct what appear to be unprecedented sums into the coffers of GOP and allied political committees, according to industry and GOP fundraising sources.

Many substantial donations from the hedge fund executives escaped public notice either because they were made late in the campaign (and therefore weren’t reported until after the election) or were funneled through third-party groups, obscure “joint fundraising committees” and newly created political nonprofits that are not required to disclose donors.

The net effect has been to give the hedge funds important new allies at a time they are fending off regulations mandated by the Dodd-Frank financial reform bill and an aggressive Justice Department investigation into insider trading.

A prime example is Rep. Scott Garrett, a little known Republican from northern New Jersey who this week is slated to become the new chairman of the House Financial Services subcommittee on capital markets, a key panel that has direct oversight of the industry. A staunch foe of the regulation of Wall Street, Garrett has threatened to cut funding for the Securities and Exchange Commission and roll back some provisions of Dodd-Frank.

To read the entire article click here.


2 comments:

Stickup Artist said...

All I can think to say is that I wish everything would hurry up and get worse so people wake up and and we can start to build a saner world.

mythopolis said...

My first response is that this is no surprise. Expect the worst, because it will be worse than that. I hope you are right, Stickup, But the question hangs over us as to whether it is all too late. Define your boundaries, pick your battles, that's where I am. (But, I am paranoid, so what can you expect?)