Posted by
Mike Bates on Saturday, September 27, 2008 2:25:53 PM
As one who's been critical of CNN's Lou Dobbs a
time or
two, I was glad to see him and correspondents Louise Schiavone and Kitty Pilgrim perform a valuable public service on
Friday's edition of Lou Dobbs Tonight.
They detailed political contributions made by finance, insurance and
real estate firms to four members of Congress taking lead roles in
crafting the Wall Street bailout:
DOBBS: Just four members of Congress will lead the
negotiations of what President Bush and Nancy Pelosi and Harry Reid
want to be the largest government bailout in history. Democrats,
Senator Dodd, Chairman of the Senate Banking Committee, Congressman
Frank, Chairman, House Financial Services Committee. Republicans
Senator Judd Gregg, ranking member of the Senate Banking Committee,
Congressman Roy Blunt, House Minority Whip.
That's your lineup, folks and over the past two decades, those four
men have accepted almost $20 million in donations from finance,
insurance and real estate firms. Yes, the very same firms that stand to
benefit from that almost trillion dollar federal bailout.
We have two reports tonight. We begin with Louise Schiavone and the Democrats.
(BEGIN VIDEOTAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): As the financial
world awaits a lifeline from Washington, they're looking to friends in
Congress whom they've helped over the years. Friends who have stood by
in key committees as debts bloomed and regulation waned.
DANIEL CLIFTON, STRATEGAS RESEARCH PARTNERS: They had politicians on
both sides of the aisle that were pushing for easier credit. Chairman
Frank and Chairman Dodd have been the facilitators of that on the
committees. And moving forward legislation that has created a lot of
this systematic risk that we are facing.
SCHIAVONE: According to Opensecrets.org, the Web site for the Center
for Responsive Politics, on the Democratic side from 1989 to present,
Senate Banking Committee Chairman Chris Dodd has accepted a total of
$13,205,556 in campaign contributions, both in PAC and individual
money, from the finance, insurance of real estate sectors.
MASSIE RITSCH, CENTER FOR RESPONSIVE POLITICS: The last time that
Congress took out the structure of the financial industry, Senator Dodd
supported letting banks get even larger and get into new lines of
riskier businesses.
SCHIAVONE: House Financial Services Committee Chairman Barney Frank
has accepted a total of $2,494,611 in campaign contributions from the
same sectors. In Frank's case, top donors include employees from the
American Bankers Association, the company that's just bought Washington
Mutual, JPMorgan Chase, and the National Association of Realtors. In
the case of Senator Dodd, top donors include Citigroup, Bear Stearns
and JPMorgan Chase. Dodd and Frank now play key roles in bailout talks.
JD FOSTER, THE HERITAGE FOUNDATION: Certainly Congress bears some
responsibility for this coming to pass. There are a lot of federal
policies that contributed to the current situation.
SCHIAVONE: House Financial Services Committee Chairman Frank told
LOU DOBBS TONIGHT quote, "specifically, I have been a consistent
supporter of strong consumer protection, support for adequately funded
affordable housing, and support for efficient functioning of financial
institutions in our economy, and I find no contradiction in working for
all three objectives."
(END VIDEOTAPE)
SCHIAVONE: Lou, Senate Banking Committee Chairman Dodd had no
comment for us. But in this instance, the three objectives outlined by
Frank appear to have been at cross-purposes, with homeowners threatened
by institutions near collapse, the economy in shambles and consumers on
the hook for a massive bailout -- Lou.
DOBBS: Louise, thank you very much. Louise Schiavone. Well let's
turn our attention now to the Republicans, represented by Senator Greg
and Congressman Blunt, the second ranking Republican in the House.
Kitty Pilgrim now with the Republicans.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Congressman Roy Blunt
and Senator Judd Gregg are no strangers to the banking industry.
According to OpenSecrets.org, the Web site for the Center for
Responsive Politics, Congressman Roy Blunt's top political donors are
in securities, investment, real estate and commercial banks,
contributing an estimated $2 million over the course of his career.
And this year alone, employees and political action committees from
financial and securities firms gave $144,000. Commercial banks
contributed $83,000. And real estate contributed $107,000. Blunt, who
is up for re-election this year, has a history of supporting business
and has given a 93 percent approval rating by the U.S. Chamber of
Commerce for voting in their interest. Bill Allison is with the
Sunlight Foundation, a nonpartisan group that advocates greater
government transparency.
BILL ALLISON, SUNLIGHT FOUNDATION: He's also been somebody who's
been very much, again, a creature of Kay Street (ph) and very much --
lobbyists have had his ear and he's been very much kind of an insider
in terms of how he's run his or how he's you know functioned in
Washington.
PILGRIM: Blunt also voted back in 1999 to roll back banking
regulations and sided with the banking industry on overhauling the
bankruptcy code in 2005 to make consumers repay more of their debt
during bankruptcy. Senator Judd Gregg's top funding sources this
election year are the securities and insurance industries which provide
21 percent of its funding.
RITSCH: Since Senator Gregg has been in Congress, he's collected
about $1 million from the financial sector and the industries that are
most interested in this bailout. The insurance industry is his number
one contributor.
PILGRIM: Citigroup is listed as the number four top contributor in
this election year. Senator Judd Gregg has a Chamber of Commerce
ranking voting 88 percent of the time pro business.
(END VIDEOTAPE)
PILGRIM: Now, public advocacy and watchdog groups say because of the
deep ties to business and banking, members of Congress involved in
crafting the bailout should not be allowed to negotiate behind closed
doors without the knowledge of the public -- Lou.
DOBBS: Well in point of fact, and Judd Gregg, how much has he taken from...
(CROSSTALK)
DOBBS: $1 million.
(CROSSTALK)
PILGRIM: Yes.
DOBBS: Well he and -- I mean that's sort of shocking. He and Blunt
are pikers (ph). I mean Christopher Dodd and Barney Frank have been
making them look silly. I mean you're talking tremendous sums of money
on the Democratic side. I'm a little embarrassed for the Republicans.
They're supposed to be the party of business and they're not getting
their fair share of the business.
Dobbs is right. The Republicans received chump change compared to
the bucks pulled down by their Democratic counterparts. Then again, it
seems to me that the Democrats bear considerably more culpability for
the financial quagmire we find ourselves in.
More than a year ago, the $13 million man Dodd told CNN's Gerri Willis
that predatory lenders were responsible for the impending mortgage
crisis: "The fact that any reputable banker or lender would make these
kinds of loans so widely available to wage-earners, to elderly families
on fixed incomes, or to lower-income, unsophisticated borrowers,
strikes me as unconscionable and deceptive." This is the same Dodd who
for years has demanded, along with Bill Clinton, Jimmy Carter, and
Jesse Jackson, that lenders make loans to "lower-income,
unsophisticated borrowers." Unsophisticated folks have been a core
Democratic constituency for decades.
Then there's $2.5 million Barney Frank, who was quoted by the New York Times in 2003:
''These two entities -- Fannie Mae and Freddie Mac --
are not facing any kind of financial crisis,'' said Representative
Barney Frank of Massachusetts, the ranking Democrat on the Financial
Services Committee. ''The more people exaggerate these problems, the
more pressure there is on these companies, the less we will see in
terms of affordable housing.''
Lou Dobbs deserves commendation for detailing the money trail.
Politicians immersed in developing the bailout need to be watched
carefully. Their past performances justify little optimism for the
legislation they'll draft. We know who's going to pay. With these
characters, the big question will be who benefits.