Posted on 09/16/2008 4:42:08 PM PDT by EBH
Wall Street's grim news has plenty of people worried about their pocketbooks. Lawmakers are among them, not only concerned with how to boost the economy but with their own personal finances tied to companies that are struggling. The richest members of Congress seem to be the most invested in the companies at the center of the Wall Street shake-up.
According to the nonpartisan Center for Responsive Politics, nine lawmakers have between $785,900 and $1.8 million of their own money invested in Merrill Lynch, the brokerage firm that agreed over the weekend to sell itself to Bank of America for $50 billion after facing tens of billions of dollars in losses. Because Bank of America offered to buy the company at a 70 percent premium over the company's closing price on Friday, those who own stock in Merrill Lynch stand to gain from the transaction. Two of the richest members of Congress owned the most stock in the company. Sen. John Kerry (D-Mass.) reported holding between $500,001 and $1 million on his most recent personal financial disclosure, covering 2007, and Sen. Elizabeth Dole (R-N.C.) owned between $250,003 and $601,000 in stock. (Lawmakers disclose their finances in ranges, annually, making it difficult to determine their assets' precise values.)
Merrill's white knight, Bank of America, which, comparatively, seems to be managing just fine in today's sour economy, is a far more popular investment for members of Congress. Fifty-four lawmakers who held stock in the company in 2007, worth between $1.9 million and $5 million, are probably breathing easier, knowing that Bank of America is buying--rather than having to be bought. Rep. Robin Hayes (R-N.C.), another one of the richest members of Congress, owned between $865,004 and $1.8 million in stock in the company, while Rep. Rodney Frelinghuysen (R-N.J.), yet another of the richest lawmakers, owned between $201,004 and $465,000 in stock. Seven lawmakers, led by Kerry, owned stock in both Bank of America and Merrill Lynch.
The weekend's headlines also laid bare the state of investment bank Lehman Brothers, which filed for bankruptcy Monday after the federal government refused to bail it out and the company was unable to find a buyer. Eight lawmakers owned stock in Lehman Brothers at the end of 2007, valued at between $102,170 and $184,160. Rep. Jane Harman's stock in the company was worth the most at between $5,001 and $100,000. Harman, a California Democrat, was the wealthiest member of Congress in 2006.
Of all of the companies facing major transitions, lawmakers owned the most stock in American International Group (AIG), the nation's largest insurer, which has asked the Federal Reserve for emergency funding as it faces financial hardships. Twenty-seven lawmakers owned stock in AIG last year, worth between $6.4 million and $20 million. Hayes was at the top of the list of congressional investors, owning stock worth between $2.8 million and $11.5 million, while Kerry followed with stock valued around $2 million.
The 2007 reports are the most recent available for Congress, and they represent snapshots of members' finances at the end of that year. Lawmakers may have sold off these investments in the last eight months, as the outlook for companies darkened. In addition, CRP does not yet have the personal financial disclosure data for about 50 lawmakers who received extensions on the annual reports.
Before the Fall, Companies Were Major Contributors
As these companies struggle to stay afloat without bringing the economy crashing down around them, the government has said it won't bail them out, but will instead leave Wall Street to straighten out the mess. This is the sobering message that has been delivered to companies that are among the top contributors of all time to federal politics.
Since the 1990 election, Merrill Lynch's PAC and employees have given $14.7 million to federal candidates, parties and committees. The company leans heavily Republican--64 percent of the brokerage's total donations have gone to GOP candidates and committees. All three of its top recipients have been (or still are) presidential hopefuls this election cycle. Republican John McCain received $394,300 from people associated with Merrill Lynch, making the company his top contributor. Democrat Hillary Clinton collected $290,650, and Barack Obama got $229,100. The company's favorite non-presidential candidate is Sen. Charles Schumer (D-N.Y.), a member of both the Senate Banking, Housing and Urban Affairs Committee and the Senate Finance Committee. He has received $226,150 in this election cycle.
Bank of America's PAC and employees have given $16.6 million, also favoring Republicans, though less sharply. About 54 percent of the company's contributions over time have gone to the GOP. Obama is the top recipient of contributions from employees at Bank of America, with $263,500 in donations. McCain has brought in $177,500, making him the fourth-largest recipient. Sen. Chris Dodd, chair of the Senate banking committee, has collected $144,650, while congressional leaders Nancy Pelosi, Steny Hoyer (both Democrats) and John Boehner (a Republican) are all among the company's top 20 recipients over time.
Lehman Brothers has given $9.2 million through employees and its PAC since 1989, with 54 percent of that going to Democrats. Clinton and Barack Obama top the list of all-time recipients for the company, collecting $410,000 and $395,600 respectively. Schumer hauled in $181,450, while Dodd has collected $165,800. The top recipient of PAC money from Lehman Brothers has been Rep. Mike Castle (R-Del.), a member of the House Financial Services Committee, which has jurisdiction over banking and the securities industry. Castle has collected $38,500 from Lehman's PAC since 1993.
This election cycle, Lehman employees have given about $1.3 million to presidential candidates. Only fellow financial giants Goldman Sachs, Citigroup and Morgan Stanley have given more to the presidential hopefuls this election cycle. Lehman employees have made their firm one of the top contributors to both Obama ($370,500) and John McCain ($117,500) this election cycle. (For a full list of recipients of Lehman contributions, see this post from Friday.)
Of all the companies making headlines this week, AIG has been the most nonpartisan in its contributions, splitting evenly the $9.7 million it has contributed over time. Dodd has racked up the most from AIG, with a total of $281,400, while Schumer takes second with $116,400. McCain and Obama collected $103,000 and $82,600 from AIG, respectively.
the GOP better run with this fast and get it out there....
Obama, McCain, Kerry....so ‘bipartisan’. No wonder the Senate always votes to bail all these institutions out!
“the GOP better run with this fast and get it out there....”
Well, you can bet the only part of the story the media will cover will be this:
Republican John McCain received $394,300 from people associated with Merrill Lynch, making the company his top contributor
BAC - McCain has brought in $177,500, making him the fourth-largest recipient.
Lehman - and John McCain ($117,500) this election cycle
AIG - McCain collected $103,000
follow the money, the more money these greedy politican have in a company the more likely they’ll advocate for government to bail them out
The Unity Party doesn’t like losing their piggy banks.
OINK!!! SQUEEL!!!
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