Report WallStreet Supercmte 20110923 fixed-1 · 2019-11-09 ·...

Public Campaign and National People’s Action

The $41 Million Question 2 of 23

Executive Summary The Joint Select Committee on Deficit Reduction is charged with finding $1.5 trillion in deficit reduction measures. Whether these measures will reflect a balanced approach and rely on much needed revenue raisers is a subject of intense debate, and intense lobbying. The 12 members of Congress on this so-‐called “supercommittee” are facing intense, concentrated pressure from lobbyists and wealthy special interests representing major corporations and trade associations who are concerned about being asked to pay their fair share if the supercommittee closes corporate loopholes or fairly taxes top earners. Like many others, Wall Street and the financial sector will have a major stake in the committee’s decisions. The sector has invested tens of millions of dollars in campaign contributions to the 12 members of the supercommittee, as well as billions of dollars on lobbying over the past 11 years, according to a report from Public Campaign and National People’s Action.

• The 12 members of the supercommittee have received at least $41 million from the finance, insurance, and real estate (FIRE) sector1 during their time in Congress.

• They have received nearly $900,000 from three of the top American banks: JPMorgan Chase, Bank of America, and Wells Fargo.

• Since 2000, the financial sector has spent over $4 billion lobbying elected officials. • At least 27 current or former aides to supercommittee members have worked as

lobbyists for financial sector interests. Will supercommittee members do what it takes to raise the revenue necessary or bow to the strong influence of their Wall Street backers? While Public Campaign does not take positions on specific revenues and cuts, it believes many policies do not receive a fair hearing in a political system dominated by special interest money, particularly campaign money from Wall Street CEOs, executives, and PACs. National People's Action calls on supercommittee members to raise a portion of the revenue we desperately need from Wall Street. Wall Street’s actions drove the current recession and they need to pay to fix what they broke. In addition, over the last 30 years, the financial sector has grown exponentially and now comprises a much larger portion of our economy, yet the tax code does not reflect this reality, and the industry is now massively under-‐taxed. Both organizations believe the unfair tax code is a direct result of a political system skewed to benefit those with the wherewithal to make large political donations and deploy armies of well-‐connected lobbyists.

1 Also referred to in this report as the “financial sector.”



Introduction “It did not surprise the Commission that an industry of such wealth and power would exert pressure on policy makers and regulators. From 1999 to 2008, the financial sector expended $2.7 billion in reported federal lobbying expenses; individuals and political action committees in the sector made more than $1 billion in campaign contributions,” wrote the congressionally-‐established Financial Crisis Inquiry Commission, as one of the reasons Wall Street had lax government oversight as it wrecked our economy.2 According to historical analysis by the nonpartisan Center for Responsive Politics (CRP), donors representing the financial sector have given more campaign money over the past two decades than any other sector. Industries within the sector are consistently ranked among the largest source of campaign money for federal candidates. Financial services and investment company donors are the third largest givers in campaign contributions, real estate interests are fourth, and commercial banks are thirteenth, according to CRP.3 In the years leading up to the country’s economic collapse, Wall Street threw money at elected officials in order to weaken financial industry regulations. Wall Street greed fueled political spending in a downward cycle of corruption, leading our country into a tailspin that forced millions of Americans out of work while lawmakers where unable or unwilling to rein in their campaigns’ underwriters. The new Joint Select Committee on Deficit Reduction, or “supercommittee,” is charged with finding at least $1.5 trillion in deficit reduction measures. There is no way this can be done by simply cutting spending without seriously impacting already hurting families. This supercommittee—and the poor and middle class families most impacted by the economic collapse—cannot afford to let Wall Street get out of paying its fair share because of its political influence. In fact, there are several ways to reduce the deficit that will speed the recovery of the economy without adding burden to families most impacted by the ongoing recession. For example, it is possible to cut $1 trillion in wasteful federal spending in the form of tax expenditures, including corporate tax loopholes and subsidies,4 or to gain another trillion by letting Bush-‐era tax cuts expire for the top 2 percent of households.5 But some common sense ideas proposed to raise revenue would face opposition from the financial sector, including:

2 Financial Crisis Inquiry Commission Report (January 2011). Page xviii. Available online at http://fcic-‐static.law.stanford.edu/cdn_media/fcic-‐reports/fcic_final_report_full.pdf. 3 The Center for Responsive Politics: http://www.opensecrets.org/bigpicture/industries.php?cycle=All. 4 Cut Spending in the Tax Code, Wasteful Spending in the Tax Expenditure Budget is Fertile Ground for Deficit Reduction (March 2011), Center for American Progress. Available online at http://www.americanprogress.org/issues/2011/03/pdf/tax_expenditures.pdf 5 Letting High-‐Income Tax Cuts Expire Is Proper Response to Nation’s Short-‐ and Long-‐Term Challenges (July 26, 2010), Center for Budget and Policy Priorities. Available online at http://www.cbpp.org/cms/index.cfm?fa=view&id=3241



• A financial speculation tax that, “would consist of a small tax on trades of derivatives, stocks, currency, and other financial instruments. Such a tax could raise more than $100 billion a year and curb some of the practices that led to the financial collapse.”6

• Closing the “carried interest” tax loophole. Currently, managers of hedge funds and private equity funds are allowed to pay preferential tax rates on much of their compensation. Closing this loophole and requiring them to pay the same rates as everyone else will yield nearly $20 billion in additional revenue.7 In 2010, the three Republican House members of the supercommittee (Reps. Dave Camp, Jeb Hensarling, and Fred Upton) voted against closing this loophole as part of a larger bill that included extending unemployment benefits.8

• Implementing a “bank liability fee” on the country’s “largest banks and other financial companies, based on the amount of leverage or liability that the firm has. The aim is to recoup the taxpayer cost of the Troubled Asset Relief Program, which is now expected to be less than $100 billion.”9

Other ideas, such as ensuring our country’s millionaires pay at least as much in taxes as middle class Americans or closing loopholes on yachts and corporate jets, could also impact many on Wall Street. Four of the committee’s Republicans voted against the Dodd-‐Frank financial reform legislation passed by the last Congress10 and freshmen Senator Pat Toomey (R-‐Pa.) has co-‐sponsored legislation this year to repeal it.11 One supercommittee co-‐chair, Rep. Jeb Hensarling (R-‐Ohio), wrote in July that Dodd-‐Frank, which includes the desperately needed Consumer Financial Protection Bureau, was, “a deadly cocktail of political favoritism, regulatory overreach, and radical measures.”12 The other co-‐chair, Sen. Patty Murray (D-‐Wash.), is the chief fundraiser for Senate Democrats and is required to raise money from Wall Street and other big interests to keep her party’s candidates competitive in the 2012 election. What we know for certain is that the “wealth and power” singled out by the Federal Crisis Inquiry Commission will be on full display with the 12 members of Congress serving on this supercommittee. All 12 members have close ties to Wall Street—whether its through campaign contributions, former aides turned lobbyists, or political fundraisers hosted in 2011. 6 The Super Committee’s Super Wish List (August 12, 2011), American Prospect. Available online at http://prospect.org/cs/articles?article=the_super_committees_super_wishlist. 7 Recommendations for the Special Joint Committee on Deficit Reduction (September 2011), Center for American Progress. Available online at http://www.americanprogress.org/issues/2011/09/super_committee.html. 8 Roll Call Vote #234, 111th Congress. Available online at http://clerk.house.gov/evs/2010/roll324.xml. 9 Obama to Announce Fee on 20+ Top Banks’ Liabilities Tomorrow (January 13, 2010), Politico. Available online: http://www.politico.com/morningmoney/0110/morningmoney60.html. 10 Roll Call #968, 111th Congress. Available online at http://clerk.house.gov/evs/2009/roll968.xml. 11 Sen. Toomey has cosponsored S. 712, the "Dodd-‐Frank Repeal Act of 2011." 12 Dodd Frank at One Year is Nothing for Job Creators to Celebrate, by Rep. Jeb Hensarling (July 21, 2011). CNBC.com. Available online at http://www.cnbc.com/id/43839342.



The following review provides information on total Wall Street giving to the supercommittee members, its billion dollar lobbying campaign, and individual influence profiles of each committee member.

Wall Street’s Campaign Cash The 12 members of the supercommittee have received at least $41 million from the finance, insurance, and real estate (FIRE) sector since 1989.13

• That $41 million includes nearly $11 million from securities and investment donors and $4.3 million from commercial banking interests.

• Sen. Max Baucus (D-‐Mont.), chair of the powerful Senate Finance Committee, is the biggest recipient of financial sector cash since 1989 ($6.2 million).

• Rep. Jeb Hensarling (R-‐Texas), first elected in 2002, is the top House recipient of industry money on the committee ($3.9 million).

Total Campaign Money at Sector and Industry Levels from 1989 to 2011

(includes contributions to member leadership PACs14)

Member Chamber FIRE Sector Commercial Banks Securities & Investment Max Baucus (D-‐Mont.) Senate $6,194,374 $647,007 $1,844,407 John Kerry (D-‐Mass.) Senate $6,111,463 $398,480 $2,379,429 Jon Kyl (R-‐Ariz.) Senate $5,200,483 $544,191 $894,862 Rob Portman (R-‐Ohio) Senate $4,575,680 $450,674 $1,378,507 Jeb Hensarling (R-‐Texas) House $3,899,838 $728,045 $629,292 Pat Toomey (R-‐Pa.) Senate $3,426,015 $293,966 $1,247,216 Dave Camp (R-‐Mich.) House $2,929,073 $349,325 $791,208 Patty Murray (D-‐Wash.) Senate $2,547,747 $149,625 $712,757 Jim Clyburn (D-‐S.C.) House $2,247,979 $405,700 $542,303 Chris Van Hollen (D-‐Md.) House $1,385,759 $50,250 $247,798 Xavier Becerra (D-‐Calif.) House $1,328,432 $158,050 $200,522 Fred Upton (R-‐Mich.) House $1,106,864 $123,866 $121,842 TOTAL $40,953,707 $4,299,179 $10,990,143

13 All federal campaign contribution information is based on data provided by the Center for Responsive Politics (CRP). The earliest data available is from 1989. Partial year data for 2011 goes through different months in 2011, depending on FEC reporting deadlines. CRP continually updates its website; numbers in this report may not completely reflect the most recent data available at publication time. Where indicated, totals include donations to member leadership PACs in addition to campaign committees. Unless specified as coming from a PAC or individual, references to campaign contributions from companies include any contributions from the company’s PAC and executives. 14 Sector and industry totals include donations to leadership PACs beginning in 1997. Senator Kerry’s totals do not include presidential funds, except for any presidential funds received by his leadership PAC (due to the nature of publicly available data on OpenSecrets.org).



Donations from the PACs and executives of Bank of America, JPMorgan Chase, and Wells Fargo—banks that received $95 billion15 in federal bailout funds—make up one-‐fifth of all contributions from commercial bank interests.

• Rep. Hensarling is the top recipient of campaign cash from these big bank donors, having received $188,962 in contributions since he took office in 2003. In fact, Hensarling has taken more in campaign donations from Bank of America, more from Wells Fargo, and more from JPMorgan Chase than any other supercommittee member.

• In the 2010 election cycle, JPMorgan Chairman and CEO Jamie Dimon donated $4,000 to Sen. Portman.

Total Campaign Money from Three Major Banks Since 2003

(includes contributions to member leadership PACs)

Member Bank of America JPMorgan Chase Wells Fargo Total Jeb Hensarling $84,000 $70,962 $34,000 $188,962 Max Baucus $26,300 $68,500 $22,100 $116,900 Jim Clyburn $52,250 $46,500 $18,050 $116,800 Rob Portman $30,550 $68,149 $15,450 $114,149 Dave Camp $37,750 $61,000 $12,000 $110,750 Jon Kyl $23,700 $28,700 $13,250 $65,650 Pat Toomey $20,499 $21,575 $19,450 $61,524 Xavier Becerra $18,500 $5,500 $26,500 $50,500 Patty Murray $13,750 $10,750 $7,750 $32,250 John Kerry $15,600 $1,000 $250 $16,850 Fred Upton $0 $8,500 $250 $8,750 Chris Van Hollen $4,000 $2,300 $0 $6,300 TOTAL $326,899 $393,436 $169,050 $889,385

An Army of Lobbyists The supercommittee has been called a “lobbying bonanza.”16 One lobbyist said he was going to prepare by “writing 12 really large checks.”17 Financial industry lobbyists have had plenty of practice to prepare. More than 3,000 lobbyists worked on financial reform legislation in 2010, and more than half of those consisted of former Capitol Hill aides, members of Congress, or executive branch staffers.18 Even after the passage of the Dodd-‐Frank financial reform bill, the

15 Bailout Recipients, ProPublica.org. Available online at http://projects.propublica.org/bailout/list. 16 Panel May Trigger Lobbying Bonanza (August 2, 2011), Roll Call. Available online at http://www.rollcall.com/issues/57_18/panel-‐may-‐trigger-‐lobbying-‐bonanza-‐207939-‐1.html. 17 Debt Ceiling Bill’s Super Committee Has Lobbyists Preparing (August 2, 2011), Politico. Available online at http://www.politico.com/news/stories/0811/60548.html. 18 On Financial Reform Bill, 52 Percent of Lobbyists Worked in Government (June 10, 2010), iwatchnews. Available online at http://www.iwatchnews.org/2010/06/10/2656/financial-‐reform-‐bill-‐52-‐percent-‐lobbyists-‐worked-‐government.



lobbying on its implementation has not ended. The industry spent $236 million just in the first six months of 2011. • Since 2000, the financial industry has spent $4.2 billion on lobbying. The banks alone

have spent $431 million. • At least 27 current or former aides to supercommittee members have worked as

lobbyists for financial sector interests.19

Total Lobbying Expenditures at Sector and Industry Levels Since 2000

Year FIRE Sector Commercial Banks Securities & Investment 2011 $236,981,878 $32,777,614 $49,504,472 2010 $475,342,025 $56,619,363 $101,553,730 2009 $470,427,712 $50,881,995 $92,339,852 2008 $456,163,310 $47,925,646 $93,511,107 2007 $420,373,145 $41,617,364 $86,525,053 2006 $378,068,820 $36,848,357 $63,882,809 2005 $374,436,014 $29,908,023 $60,483,321 2004 $339,016,341 $31,093,424 $56,391,180 2003 $323,474,628 $32,834,474 $50,019,601 2002 $268,624,088 $25,228,692 $43,225,858 2001 $236,280,330 $22,719,503 $39,507,903 2000 $230,946,026 $22,720,440 $44,862,610

TOTAL $4,210,134,317 $431,174,895 $781,807,496

Just as they were receiving a taxpayer bailout for their recklessness that helped crash our economy, these banks were lobbying Congress on legislation aimed at reining them in.

Bank of America, JPMorgan Chase, and Wells Fargo have spent more than $110 million on lobbying since 2000.

19 The Supercommittee’s K Street Connections, Washington Post. Available online at http://www.washingtonpost.com/wp-‐srv/special/politics/super-‐committees-‐lobbying-‐connections/.



Total Lobbying Expenditures by Three Major Banks Since 2000

Year Bank of America JP Morgan Chase Wells Fargo 2011 $1,570,000 $3,350,000 $3,820,000 2010 $3,980,000 $7,410,000 $5,430,000 2009 $3,680,000 $6,170,000 $2,950,000 2008 $4,886,000 $5,505,000 $2,265,740 2007 $4,728,000 $5,555,000 $1,919,000 2006 $1,986,014 $6,210,000 $1,765,000 2005 $900,000 $3,635,000 $1,590,000 2004 $660,000 $4,075,000 $1,280,000 2003 $656,141 $7,506,575 $960,000 2002 $679,350 $6,372,000 $620,000 2001 $1,552,204 $2,909,324 $670,000 2000 $1,567,331 $600,000 $720,000 Total $26,845,040 $59,297,899 $23,989,740

Past lobbying and campaign contributions are just part of the story. The following profiles of each supercommittee member20 include information on top financial sector donors, revolving door staff, recent and upcoming fundraisers, and member positions on fundraising and reform.

Senator Max Baucus (D-‐Mont.) Sen. Max Baucus receives more campaign money from the financial sector than any other sector. Since 1989, he has received $6.2 million, more than any other supercommittee member (he is also the longest-‐serving Senator on the committee). Eight of the top ten career donors to Baucus’s campaign committee are from the financial sector.21 Top donor Akin Gump, a Washington, D.C. lobbying firm, counts many financial companies as clients.

Baucus’ Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 Goldman Sachs $92,900 2 American International Group $91,000 3 New York Life Insurance $89,625 4 JPMorgan Chase & Co $76,802 5 Schering-‐Plough Corp $75,200 6 Morgan Stanley $74,000 7 Blue Cross/Blue Shield $73,949 8 Citigroup Inc $72,000 9 Akin Gump $71,062 10 Ernst & Young $70,311

20 Member profiles are presented in alphabetical order. 21 Career donor data does not include donations to leadership PACs.



Revolving Door Several of Baucus’s former senior staff members now lobby on behalf of financial sector clients.

• Baucus’ former chief of staff, David Castagnetti, is founder of Mehlman, Vogel and Castagnetti. His clients include Genworth Financial and the National Venture Capital Association, which has lobbied to keep the carried interest tax loophole.22

• Michael Evans, Baucus’ former legislative director and chief counsel for the Senate Finance Committee under Baucus, is a lobbyist with K&L Gates. JPMorgan Chase has already paid K&L $140,000 in 2011.

• Another former senior Baucus staffer, Patrick Heck, also went back and forth through the revolving door and is now a partner at K&L Gates, representing JPMorgan Chase.

• Peter L. Scher was chief of staff for Baucus from 1991 to 1993. In 2008, he was hired to lead JPMorgan Chase’s government relations work here and abroad.

Other former Baucus staffers who have lobbied in recent years on behalf of banks or investment firms include Dawn Levy, Greg Mastel, and Jennifer LaTourette. Fundraisers

On March 11, 2011, Baucus held a fundraiser at the offices of lobbying firm Williams & Jensen. Some 2011 clients for this firm include Brickstreet Mutual Insurance, TD Ameritrade, the U.S. Chamber of Commerce, and Visa.23 Positions on Fundraising and Reform

While Baucus has not said he will stop fundraising during the committee, his office did announce it had canceled an October 4th fundraiser with the National Association of Realtors.24

Representative Xavier Becerra (D-‐Calif.) While Rep. Xavier Becerra does not count any financial interests in his top ten career donors, he has received $1.3 million in campaign cash from the sector during his time in Congress. In this committee, after Hensarling, Becerra is the second largest committee recipient of campaign money from Wells Fargo ($26,500 since 2003).

22 More Than 1700 Stakeholders From VC and Start-‐Up Communities Urge U.S. Senate to Protect Venture Capital Carried Interest (May 11, 2010), National Venture Capital Association. Available online at http://www.nvca.org/index.php?option=com_docman&task=doc_download&gid=591&Itemid=93. 23 Reception for Max Baucus. Invitation obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/25044/. 24 Supercommittee member Max Baucus cancels fundraiser (September 2, 2011), Public Campaign blog. Available online at http://publicampaign.org/blog/2011/09/02/supercommittee-‐member-‐max-‐baucus-‐cancels-‐fundraiser.



Revolving Door Two former Becerra staff members have gone on to lobby for banks or investment firms.

• Francis Grab, a former legislative assistant, is now a lobbyist with Ernst & Young representing the National Association of Real Estate Investment Trusts, Managed Funds Association, and New York Life Insurance.

• Arshi Siddiqui, who served as ways and means counsel to Becerra, went on to lobby with Williams & Jensen and at Akin Gump, where she is now a partner. Her clients include American Express, Mortgage Insurance Companies of America, and the Private Equity Growth Capital Council, which advocates for the private equity industry and has lobbied to keep the carried interest tax loophole.25

Fundraisers On September 7th, the night before the supercommittee’s first meeting, Becerra hosted a fundraiser for his leadership PAC at Nationals Park. It is unknown who attended. Positions on Fundraising and Reform

On ending fundraising, it was reported that, "Rep. Xavier Becerra (D-‐CA) points out that unlike senators, who face re-‐election every six years, he and other House members have campaigns to finance every two years. He says he would happily stop raising election money if he heard his opponents weren't raising money or if he didn't have to pay for campaign activities."26 Becerra won his 2010 election with 84% of the vote.

Representative Dave Camp (R-‐Mich.) Over his career, Rep. Dave Camp, the current chair of the tax writing House Ways and Means Committee, has received $2.9 million in campaign contributions from the financial sector, his largest sector-‐level contributor. While individual top donors to Camp tend to be chemical and energy interests, he receives substantial support from financial institutions, particularly from the National Association of Realtors, the Credit Union National Association and the National Association of Insurance and Financial Advisors.

25 http://dealbook.nytimes.com/2011/08/23/private-‐equitys-‐top-‐lobbyist-‐steps-‐down/ 26 Lawmakers seek transparency from supercommittee (September 16, 2011), NPR. Available online at http://www.npr.org/2011/09/16/140521500/lawmakers-‐seek-‐transparency-‐from-‐supercommittee.



Camp’s Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 Dow Chemical $297,794 2 Blue Cross/Blue Shield $91,500 3 Dow Corning $89,739 4 CMS Energy $86,698 5 DTE Energy $79,027 6 National Auto Dealers Assn $74,950 7 United Parcel Service $74,605 8 National Assn of Realtors $74,450 9 Credit Union National Assn $68,400 10 Natl Assn/Insurance & Financial Advisors $63,300

Revolving Door Two of Camp’s former staffers went on to lobby for banks and investment firms.

• Dena Battle, Camp’s former legislative director, is now a principal at Capitol Counsel. Her clients include Oaktree Capital Management and the American Bankers Insurance Association.

• Michael Haywood, a former legislative assistant to Camp, went on to found LTD Group, a firm that has lobbied regularly for JPMorgan Chase in recent years.

Fundraisers On September 7th, 2011, the night before the first meeting of the supercommittee, Camp held a fundraiser at Fiola Restaurant in Washington, D.C. Host Susan Hirschmann lobbies on behalf of the American Bankers Association and the U.S. Chamber of Commerce, among others.27 Positions on Fundraising and Reform Camp announced on September 14th that while he would attend previously scheduled events, he would not add additional fundraisers to his schedule while serving on the supercommittee.28

27 Dave Camp Will Raise Money from Lobbyists House Before Looking at Their Clients Tax Loopholes (September 6, 2011). Press Release from Public Campaign Action Fund. Available online at http://campaignmoney.org/press-‐room/2011/09/06/dave-‐camp-‐will-‐raise-‐money-‐lobbyists. 28 Camp Won’t Add Fundraisers While SupComm is Meeting (September 14, 2011), National Journal. Available online at http://influencealley.nationaljournal.com/2011/09/camp-‐wont-‐add-‐fundraisers-‐whil.php.



Representative Jim Clyburn (D-‐S.C.) While financial interests do not top Rep. Jim Clyburn’s career donor list, he has received $2.2 million from the sector during his time in Congress. Among supercommittee members, Clyburn is the third largest recipient of campaign money from Bank of America, JPMorgan Chase and Wells Fargo since 2003 ($116,800 combined). Revolving Door

• Dave Grimaldi, Clyburn’s senior counsel, previously worked for The Raben Group, a lobbying firm whose clients have included MasterCard International and Prudential Financial.

• Michael Hacker, Clyburn’s coalitions director since 2007, has also worked for Quinn Gillespie & Associates, a firm that has lobbied for numerous financial firms, including the massive asset manager, Blackrock Capital Management.

Fundraisers

• On May 11, 2011, Clyburn hosted a “Financial Services Dinner” in Washington, D.C. Tickets were $5,000 to host and $2,500 to sponsor.29

• Rep. Clyburn also has at least eight fundraisers scheduled while serving on the supercommittee, including with lobbying firms that represent financial industry clients. On October 13, 2011, Clyburn has a fundraiser at the offices of Manatt, Phelps, and Phillips, a lobbying firm whose clients include the ATM Industry Association, Cardtronics Inc., and the Financial Service Centers of America.30

Positions on Fundraising and Reform Clyburn has said he will continue attending fundraisers while on the committee.31

Representative Jeb Hensarling (R-‐Texas) Rep. Jeb Hensarling, the Republican Conference Chair and vice-‐chair of the House Financial Services Committee, has received $3.9 million from financial interests since being elected to Congress in 2002—campaign money from the financial sector is at least five times greater than any other sector that contributes to Hensarling.

29 Financial Services Dinner for Jim Clyburn. Invitation obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/25931/. 30 Breakfast for Jim Clyburn. Obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/28357/. 31 Wrong time for Clyburn fundraising? (September 16, 2011), Charleston Post and Courier. Available online at http://www.postandcourier.com/news/2011/sep/16/wrong-‐time-‐for-‐clyburn-‐fundraising/.



• Hensarling has received at least $62,250 from the employees and PAC of KPMG, a global

accounting firm. In 2005, the firm agreed to pay $456 million in fines for helping wealthy Americans evade taxes by setting up shelters overseas.32

• Each of the commercial bank interests among Hensarling’s top donors (Bank of America, the American Bankers Association, First State Bank and JPMorgan Chase) have given at least $50,000 over the years.

• Another major donor UBS AG just announced a $2 billion loss caused by unauthorized trading.33 He has received at least $51,300 from UBS donors during his time in Congress.

• Cash America International, a network of over 1,000 pawnshops that provides payday loans, among other services, rounds out his list of top ten career donors.

Hensarling’s Top 10 Career Donors (with financial interests indicated in bold)

Rank Contributor Total 1 KPMG LLP $62,250

2 Energy Future Holdings Corp $56,520

3 Bank of America $56,500

4 American Bankers Assn $55,000

5 AT&T Inc $53,998

6 First State Bank $52,600

7 UBS AG $51,300

8 JPMorgan Chase & Co $50,962

9 National Beer Wholesalers Assn $50,000

10 Cash America International $46,000

Fundraisers

• Hensarling has held several fundraisers this year, mostly at Washington, D.C. restaurants and not lobbying firms.34 The hosts or attendees of these events are not known.

• Hensarling was one of eight House members investigated in 2010 by the House Office of Congressional Ethics for having held “fundraisers within 48 hours of a major House vote on a Wall Street reform bill or received substantial donations from business people with a financial stake in the bill, according to congressional sources and letters.”35

32 KPMG to Pay $456 Million for Criminal Violations (August 29, 2005), IRS Press Release. Available online at http://www.irs.gov/newsroom/article/0,,id=146999,00.html. 33 UBS Tells Clients Bank ‘Remains Strong,’ Will Review Controls After Arrest (Sep 16, 2011), Bloomberg. Available online at http://www.bloomberg.com/news/2011-‐09-‐16/ubs-‐tells-‐clients-‐bank-‐remains-‐strong-‐will-‐review-‐controls-‐after-‐arrest.html. 34 List of fundraising invitations for Rep. Hensarling: http://politicalpartytime.org/pol/N00024922/. 35 8 House Members Investigated Over Fundraisers Held Near Financial Reform Vote (June 16, 2010), Washington Post. Available online at http://www.washingtonpost.com/wp-‐dyn/content/article/2010/06/16/AR2010061603032.html.



Positions on Fundraising and Reform Hensarling has not said whether or not he will continue raising money while on the supercommittee.

Senator John Kerry (D-‐Mass.) Among supercommittee members, Sen. John Kerry is the second largest recipient of campaign cash from the financial sector, $6.1 million since 1989.36 Kerry’s top donors include Goldman Sachs and Citigroup, along with lobbying firms that regularly represent investment firms and finance companies (Skadden Arps and DLA Piper).

Kerry’s Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 University of California $654,830 2 Harvard University $460,939 3 Time Warner $451,934 4 Goldman Sachs $365,550 5 Citigroup Inc $339,537 6 Skadden Arps $326,127 7 WilmerHale LLP $325,586 8 Microsoft Corp $320,297 9 Mintz Levin $320,147 10 DLA Piper $292,803

Revolving Door At least four of Kerry’s former staffers have also been lobbyists for banks and investment firms.

• Kerry’s former chief of staff, Christopher Greeley, went on to lobby with Commonwealth Group, Wolf Block Public Strategies, and Nelson, Mullins, his current employer. His clients have included Darby Financial Products.

• Barry LaSala, Kerry’s former counsel in the Senate, is a lobbyist for Elmendorf Strategies, representing Goldman Sachs, the Financial Services Forum, and the Securities Industry & Financial Market Association, among others.

• Meaghan Hohl Taborda, a former legislative assistant for Kerry, is the lead in-‐house lobbyist for Fidelity Investments.

36 Campaign contributions collected by Kerry during the 2004 cycle were not included in order to exclude presidential campaign funds from this total. However, contributions made to his leadership PAC in the 2004 cycle were included due to data availability on OpenSecrets.org.



• Gregg Rothschild was Kerry’s legislative director and now lobbies with Glover Park Group, whose clients include the American Bankers Association and JPMorgan Chase.

Fundraisers On May 11 a fundraiser for Kerry’s leadership PAC, Campaign for our Country, was held at the offices of the lobbying firm Glover Park Group, with revolvers LaSala and Rothschild listed as hosts.37 Glover Park’s 2011 clients include the American Bankers Association, JPMorgan Chase, Standard Chartered Bank, and Ernst & Young. Positions on Fundraising and Reform Kerry, to his credit, has said he will not raise money for his own campaign while serving on the committee.38 In addition, Kerry has long supported legislation to reduce the influence of special interest money on our political system. He is currently a sponsor of the Fair Elections Now Act (S. 750), legislation that would put voters—not donors—back in charge of our political system.

Senator Jon Kyl (R-‐Ariz.) Sen. Kyl has received $5.2 million from financial interests during his time in Congress, including top career donors Citigroup and Farnsworth Companies, an Arizona-‐based real estate and mortgage service company. His 13th largest contributor is the American Bankers Association at $54,533.

Kyl’s Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 Club for Growth $155,753 2 Snell & Wilmer $104,616 3 Viad Corp $100,700 4 Pinnacle West Capital $95,195 5 Citigroup Inc $85,350 6 Farnsworth Companies $69,635 7 Phelps Dodge Corp $69,050 8 Tuttle-‐Click Automotive Group $65,700 9 US Airways $61,250 10 Squire, Sanders & Dempsey $60,250

37 Breakfast. Invitation obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/25839/. 38 Kerry Vows to Avoid Lobbyists, Fundraising While on Supercommittee (September 12, 2011). Available online at http://www.boston.com/Boston/politicalintelligence/2011/09/kerry-‐vows-‐avoid-‐lobbyists-‐fund-‐raising-‐while-‐supercommittee/wUtCh7v6qMwFFQu2r1zrsO/index.html.



Revolving Door

• Kyl’s former foreign policy and defense advisor, Christine Clark, is now a principal at the Podesta Group. Her financial sector clients include Credit Suisse Group, First Data, Property Casualty Insurers Association of America, and Wells Fargo.

• Manny Rossman, Kyl’s former chief of staff, is now at Breaux Lott Leadership Group. His clients include Citigroup, Goldman Sachs and Prudential Financial.

• Lawrence Willcox, Kyl’s former tax counsel, is a lobbyist with Capitol Tax Partners where his clients include Bank of New York Mellon, Capital One Financial, JPMorgan Chase, and Morgan Stanley.

Fundraisers Kyl is not running for re-‐election in 2012, but that hasn’t stopped him from raising money while the supercommittee does its work.

• On September 21st, 2011, Kyl attended a fundraiser for former Rep. Heather Wilson (R-‐N.M.), now running for the U.S. Senate in New Mexico.39

• On September 14th, 2011, Kyl was the guest at a fundraiser for Wisconsin Sen. Ron Johnson (R).40

• On September 13th, Kyl was the guest at an event for Sen. Roger Wicker (R-‐Miss.) at the lobbying firm of R.B. Murphy and Associates.41 Investment firm Dialectic Capital Management is a 2011 client of the firm.

Positions on Fundraising and Reform Since Kyl is not seeking re-‐election, he is not holding fundraisers for himself during the committee, but as seen above, he will be helping others raise money.

Senator Patty Murray (D-‐Wash.) Sen. Patty Murray has received $2.5 million from financial interests during her time in Congress. She is also the current chair of the Democratic Senatorial Campaign Committee (DSCC), charged with raising money for 2012 Democratic Senate races. In 2010, the DSCC raised $12.8 million from financial industry interests.42 39 Reception. Invite obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/28363/. 40 Dinner for Ron Johnson. Invite obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/28346/. 41 Reception. Invite obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/28362/. 42 Industry totals for party committees are not yet available for 2011 on OpenSecrets.org.



Revolving Door Sen. Murray has employed at least three people who have also lobbied on behalf of banks and investment firms.

• Rick Desimone, Murray’s former chief of staff for eight years, is a lobbyist for McBee Strategic Consulting and has worked on behalf of JPMorgan Chase.

• Christy Gullion, Murray’s former northwest regional director, is the Director of Federal Relations at Washington2 Advocates. Her clients have included the investment firm Northwestern Mutual and real estate company American Life.

• Heather Meade, a former assistant to Murray’s chief of staff, is a lobbyist for Ernst & Young. Among her numerous financial sector clients are Charles Schwab, the Real Estate Investment Securities Association, and the Securities Industry & Financial Markets Association

Fundraisers Murray will attend at least two fundraisers for the Democratic Senatorial Campaign Committee during her time on the supercommittee, but neither invitation lists attendees. Positions on Fundraising and Reform As chair of the DSCC, it’s nearly impossible for Murray to give up fundraising during the committee and she has indicated that she will continue to attend events.

Senator Rob Portman (R-‐Ohio) Sen. Portman has received $4.6 million in campaign contributions from the financial sector and more than half of his top career donors are financial sector interests.

• The largest donor over his career has been the American Financial Group, a holding company based in Cincinnati that owns insurance companies and sells retirement annuities.

• Fourth on his top donors list is Fidelity Investments (FMR Corp), one of the largest mutual fund and financial services groups in the world.

• In addition to being a top donor to Portman, hedge fund manager Elliot Management is often among the top contributors to Republican Party committees. In the 2008 cycle, Elliott Management was the largest donor to the Republican National Committee ($1 million), and in the 2010 cycle, it was the second largest donor to the National Republican Senatorial Committee ($680,000).



• Big banks Citigroup and JPMorgan Chase round out the list. Among the many bank executives who have given to Portman over his career, JPMorgan Chairman and CEO Jamie Dimon donated $4,000 to Portman in the 2010 election cycle.

Also, in his 2010 Senate race, the outside group American Crossroads spent $820,605 to benefit Portman. The group received hundreds of thousands of dollars from financial industry interests.

Portman’s Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 American Financial Group $278,782 2 Procter & Gamble $168,720 3 Squire, Sanders & Dempsey $105,100 4 FMR Corp $97,200 5 Cintas Corp $95,200 6 General Electric $95,010 7 Elliott Management $88,868 8 Citigroup Inc $88,100 9 JPMorgan Chase & Co $73,149 10 MetLife Inc $71,900

Revolving Door Two former staffers for Portman have ties to the financial industry.

• Barbara Pate, Portman’s former tax counsel and legislative director, is a lobbyist for Davis & Harman. Her clients include AEGON, Edward Jones Investments, the Committee on Annuity Insurers, and Mutual of Omaha.

• Robert Schellhas, Portman’s former chief of staff, was an in-‐house lobbyist for Citigroup Management Corp for eight years. He is now a principal at Ernst & Young and continues to represent Citigroup.

Fundraisers On July 20th, 2011, Portman held an “Annual and Awesome Chili Fest” fundraiser with a slew of lobbyists at the National Republican Senatorial Committee offices. Schellhas, Portman’s former chief of staff mentioned above, is a host. Other hosts include Robert Chamberlin, a lobbyist for McBee Strategic Consulting who represents JPMorgan Chase, and Nick Calio, who from 2003 to 2010 worked for Citigroup as an in-‐house lobbyist.



Positions on Fundraising and Reform Portman will not stop fundraising altogether, but he did say, “Personally, I’ve canceled a bunch of events.”43

Senator Pat Toomey (R-‐Pa.) Sen. Pat Toomey has received $3.4 million from financial interests during his time in Congress. Toomey’s top donors include JPMorgan Chase, the American Bankers Association, and hedge fund managers SAC Capital Advisors and Elliott Management. Elliott Management is also a top contributor to Republican Party committees (see Portman’s profile for details). At the top of Toomey’s donor list and eight times larger than his second biggest donor, is the anti-‐tax organization, Club for Growth (which Toomey used to head). Club for Growth Action, its independent expenditure counterpart, spent $2.7 million in outside advertising to help Toomey get elected. The group received $500,000 from John Childs,44 the owner of a major Boston-‐based investment firm.

Toomey’s Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 Club for Growth $847,033 2 Elliott Management $115,438 3 Air Products & Chemicals Inc $89,211 4 Senate Conservatives Fund $61,723 5 PPL Corp $47,600 6 SAC Capital Advisors $46,100 7 JPMorgan Chase & Co $43,575 8 American Bankers Assn $41,000 9 Associated Builders & Contractors $40,325 10 National Restaurant Assn $37,540

43 Supercommittee Member Rob Portman Cancels Fundraisers (September 7, 2011), Public Campaign blog. Available online at http://publicampaign.org/blog/2011/09/07/supercommittee-‐member-‐rob-‐portman-‐cancels-‐fundraisers. 44 Center for Responsive Politics profile for Club for Growth Action: http://www.opensecrets.org/pacs/pacgave2.php?cycle=2010&cmte=C00487470.



Toomey also received help from the U.S. Chamber of Commerce, which spent nearly $1.5 million to benefit his campaign.45 The U.S. Chamber has said that the supercommittee “should not single out specific industries or individuals for punishment.”46

Revolving Door Brian Wild, Toomey’s chief of staff from 2001 to 2004, has lobbied with the Nickles Group and now works for Mehlman, Vogel and Castagnetti. His clients include hedge fund company Davidson Kempner Capital Management and the National Venture Capital Association. Fundraisers

• On September 22nd, 2011, Toomey held a fundraiser for his leadership PAC at Washington, D.C. restaurant Bistro Bis.47 The event was just hours before a supercommittee meeting. It is unknown, at this writing, who was in attendance.

• On July 20th, 2011, Toomey held a fundraiser at Johnny’s Half Shell. Hosts included JC Boggs, a lobbyist for Blank Rome who represents Prudential Financial, and Bill Hoagland, a lobbyist for Cigna, the insurance giant.48

Positions on Fundraising and Reform Toomey has explicitly said he will continue to fundraise while serving on the committee.49

Representative Fred Upton (R-‐Mich) Rep. Fred Upton has received $1.1 million from financial interests during his time in Congress. Upton’s top career donors include the National Association of Realtors and the Credit Union National Association.

45 Center for Responsive Politics profile for 2010 Pennsylvania Senate race: http://www.opensecrets.org/races/indexp.php?cycle=2010&id=PAS1. 46 U.S. Chamber Urges Supercommittee to go for Grand Deficit Deal (August 16, 2011), The Hill. Available online at http://thehill.com/blogs/on-‐the-‐money/budget/177115-‐chamber-‐tells-‐supercommittee-‐to-‐go-‐for-‐grand-‐deal. 47 Breakfast. Invite obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/28364/. 48 Breakfast. Invite obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/27131/. 49 Sen. Toomey will not give up fundraising during supercommittee (September 14, 2011). Available online at http://campaignmoney.org/blog/2011/09/14/sen-‐toomey-‐will-‐not-‐give-‐fundraising-‐during-‐supercommittee.



Upton’s Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 AT&T Inc $99,600 2 CMS Energy $93,628 3 Ford Motor Co $86,900 4 Whirlpool Corp $80,770 5 DTE Energy $77,700 6 National Assn of Broadcasters $76,800 7 National Assn of Realtors $71,550 8 Credit Union National Assn $64,850 9 EnergySolutions Inc $63,200 10 United Parcel Service $60,912

Revolving Door Fred Upton’s former legislative director, Scott Aliferis, is now a lobbyist with K&L Gates representing the Financial Accounting Foundation. Other In a July op-‐ed, Upton warned of the dangers of private lobbying organizations and special interests “operating in an increasingly competitive lobbying realm in Washington—a world where getting on the agenda often requires hefty financial resources and clever political strategies.”50 He was talking of course about environmental groups who, through their efforts to protect public health and promote energy sustainability, may be at odds with his oil, coal and electric utility donors. Through his recent shift from moderate to conservative views on climate change as his funding from these donors has grown, he seems to understand first-‐hand the influence of groups with money and access to politicians. Positions on Fundraising and Reform Like his Michigan counterpart, Upton will also forgo additional fundraising while serving on the supercommittee. “You can add Fred to list of members not scheduling addt'l fundraisers during [his] supercommittee term,” his spokesman said.51

50 Politicizing The Green Debate, by Rep. Fred Upton (July 5, 2011), Investors Business Daily. Available online at http://www.investors.com/NewsAndAnalysis/Article.aspx?id=577352&p=2 51 Upton to forgo more fundraising (September 16, 2011), Politico Influence. Available online at http://www.politico.com/politicoinfluence/0911/politicoinfluence101.html.



Representative Chris Van Hollen (D-‐Md.) Rep. Chris Van Hollen has received $1.4 million in campaign contributions from the financial sector. In the 2010 election cycle, as chair of the Democratic Congressional Campaign Committee, Van Hollen helped raise the $11 million the committee received from financial interests. His top donors include the National Association of Realtors, along with lobbying firms Arent Fox and Arnold & Porter, both of which represent financial sector clients.

Van Hollen’s Top 10 Career Donors (with financial interests in bold)

Rank Contributor Total 1 Arent Fox LLP $152,323 2 Arnold & Porter $61,240 3 AEPCO Inc $57,750 4 US Dept of Health & Human Services $57,368 5 American Assn for Justice $51,000 6 National Education Assn $50,200 7 Intl Brotherhood of Electrical Workers $50,000 8 National Assn of Realtors $50,000 9 American Federation of Teachers $46,500 10 Ironworkers Union $45,500

Fundraisers Van Hollen held a fundraiser on September 23, 2011, a day after the supercommittee met.52 It is unclear who was in attendance. Positions on Fundraising and Reform Van Hollen has not indicated whether he will or will not continue fundraising during the supercommittee. Van Hollen has previously co-‐sponsored the Fair Elections Now Act, legislation that would allow candidates to run competitive campaigns for office without having to rely on wealthy campaign donors. In addition, he was the leading force behind the DISCLOSE Act, legislation introduced in response to the Supreme Court’s Citizens United decision.

52 Breakfast. Invite obtained by the Sunlight Foundation’s PoliticalPartyTime.org. Available online at http://politicalpartytime.org/party/28652/.



Conclusion The financial sector has played a central role in draining financial resources out of our economy, from precipitating the recession to skewing municipal bond markets. And yet these institutions have avoided paying their fair share and helping the economy to recover. The decisions this supercommittee makes in the coming months will show what guides policymakers: Wall Street influence, or the interests and needs of everyday Americans. From 2001 to 2010, the average in federal taxes paid as a percentage of US earnings by six major banks has been estimated at 26.7 percent, and half of the six banks’ 1,871 foreign subsidiaries are incorporated as offshore tax havens.53 In a recent examination of companies that paid their CEOs more than they paid in federal income taxes in 2010, four of the 25 companies featured were financial firms: Aon, Bank of New York Mellon, Prudential Financial, and Capital One Financial.54 Four supercommittee members—Camp, Upton, Becerra, and Clyburn—come from states where unemployment tops 11 percent. The rest aren’t much better. Foreclosure rates are still high with one in 349 houses in Michigan in foreclosure.55 It’s one in every 248 in Arizona. Wall Street greed and practices—abetted at worst or left unchecked at best by Washington—crashed the economy and has caused millions of families to face economic hardship. The last thing the country can afford is a supercommittee that gives wealthy Wall Street donors and lobbyists a pass at the expense of regular Americans impacted by job loss, foreclosures, or the financial uncertainty of owing more on their mortgages than their homes are worth on the market. That’s why Public Campaign and National People’s Action have called for the 12 supercommittee members to give up fundraising while serving on the committee and to provide complete transparency of meetings with outside parties like lobbyists, corporate CEOs, and campaign donors. Wall Street donors shouldn’t get special access to these members just because they can afford to write a check. Everyday Americans didn’t create toxic assets or ship jobs overseas. Over the past few years, we’ve witnessed a political system that allows those who caused the economic disruption we see on Main Street in town after town and city after city to buy their way out of responsibility and pass that burden on to the rest of us. With the actions of the supercommittee under the microscope, we hope that will come to an end.

53 Big Bank Tax Drain (March 2011), Public Accountability Initiative for National People’s Action. Available online at: http://public-‐accountability.org/tax-‐drain/. 54 The Massive CEO Rewards for Tax Dodging (August 31, 2011), Institute for Policy Studies. Available online at: http://www.ips-‐dc.org/reports/executive_excess_2011_the_massive_ceo_rewards_for_tax_dodging. 55 RealtyTrac data for August 2011 foreclosure rates. Accessed on September 20, 2011: http://www.realtytrac.com/trendcenter/

Public Campaign is a non-‐profit, non-‐partisan organization dedicated to sweeping campaign reform that aims to dramatically reduce the role of big special interest money in American politics. Public Campaign is laying the foundation for reform by working with a broad range of organizations, including local community groups, around the country that are fighting for change and national organizations whose members are not fairly represented under the current campaign finance system. Together we are building a network of national and state-‐based efforts to create a powerful national force for federal and state campaign reform. Public Campaign 1133 19th Street NW, 9th Floor Washington, DC 20036 http://www.publicampaign.org For more information, contact Adam Smith ([email protected]). National People's Action (NPA) is a network of community power organizations from across the country that work to advance a national economic and racial justice agenda. NPA has over 200 organizers working to unite everyday people in cities, towns, and rural communities throughout the United States. For 38 years NPA has been a leader in the fight to hold banks accountable to the communities in which they serve and profit. National People's Action 810 North Milwaukee Avenue Chicago, IL 60642-‐4103 http://www.npa-‐us.org http://www.showdowninamerica.org For more information, contact Monica Trevino (monica@npa-‐us.org).

Report WallStreet Supercmte 20110923 fixed-1 · 2019-11-09 ·...

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