The Shock Doctrine

Disaster Capitalism in Action: campaign contributions

Bailed Out Banks Make Campaign Contributions to Politicians Overseeing TARP

Michael Isikoff and Dina Fine Maron, Newsweek, March 21, 2009

"A NEWSWEEK review of recent filings with the Federal Election Commission found that the political action committees of five big TARP recipients doled out $85,300 to members in the first two months of this year—with most of the cash going to those who serves on committees who oversee the TARP program. Among them: Bank of America (which got $15 billion in bailout money) sent out $24,500 in the first two months of 2009, including $1,500 to House Majority Leader Steny Hoyer and another $15,000 to members of the House and Senate banking panels. Citigroup ($25 billion) dished out $29,620, including $2,500 to House GOPWhip Eric Cantor, who also got $10,000 from UBS which, while not a TARP recipient, got $5 billion in bailout funds as an AIG 'counterparty.' 'This certainly appears to be a case of TARP funds being recycled into campaign contributions,' says Brett Kappel, a D.C. lawyer who tracks donations. (A spokesman for Cantor did not respond to requests for comment. A spokeswoman for Hoyer said it's his 'policy to accept legal contributions.')"

Bailed Out Banks Still Spend Billions on Campaign Donations

Silla Brush, The Hill, March 3, 2009

"The eight largest banks’ political action committees (PACs) spent roughly $225,000, not including operating expenses, between Nov. 25 and the end of January, according to a review of year-end and February filings with the Federal Election Commission. Those same eight banks have received $170 billion of the government’s $700 billion financial rescue package, passed in October and currently being reworked by President Obama’s administration....

"JPMorgan Chase & Co., which received $25 billion in bailout money last fall, was the largest bank contributor in the last two periods. The firm’s PAC spent roughly $87,000 since Nov. 25, including $5,000 to former Sen. Norm Coleman (R-Minn.), $5,000 for debt retirement to Sen. Mark Warner (D-Va.), $15,000 to the National Republican Senatorial Committee and $5,000 to the New Democrat Coalition PAC....

"Some of the leading trade associations representing the financial industry also have given hundreds of thousands since mid-November. The American Bankers Association PAC spent $132,000, and the Independent Community Bankers Association spent $106,000. The Securities Industry and Financial Markets Association PAC spent only $1,000, and the Financial Service Roundtable PAC spent roughly $17,000."

Jacket Cover