National Debt Clock

Tuesday, December 22, 2009

Banks with Political Ties got Bailouts, Study Shows

U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday.

Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan's Ross School of Business.

Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds.

1 comment:

  1. The banks that got bailed out needed bailed out.

    Figuratively, they lost gambles and came to tax payers to pay their bet. Literally, we had no choice but pay off for them.
    I'm pissed, but it's the truth.

    Read the Wikipedia page on "shadow banking" system. No, it doesn't mean anything like a secret system.

    You'll see it has nothing to do with who lobbied who.

    Not that lobbying, and the power of wealth, isn't a problem.