Follow the (Democratic) Money: A Scandal Guide
And then there is money from the other end of the economic spectrum — the financial institutions which disintegrated in the housing meltdown and resulting recession. Freddie Mac and Fannie Mae forked over more than $4 million between 1989 and 2002 to lawmakers, 57% to Democrats and many to those directly responsible for regulatory oversight. Then-Senator Barack Obama snared $126,349, Chris Dodd raked in $165,400, and Rahm Emanuel got $57,500. (Meanwhile no one in Congress saw fit to call a halt to the subprime mortgage feeding frenzy spurred by Freddie and Fannie.)
But that’s small stuff compared to what New York Senator Chuck Schumer was pulling in from a variety of big financial players whose firms were subject to oversight from the Senate Banking Committee on which he sat. The New York Times laid it out clearly: Schumer would soft-pedal regulation and they would give boatloads of cash to him and the Democratic Senate Campaign Committee which he chaired. The Times reported:
An exceptional fund raiser — a “jackhammer,” someone who knows him says, for whom ” ‘no’ is the first step to ‘yes,’ ” — Mr. Schumer led the Democratic Senatorial Campaign Committee for the last four years, raising a record $240 million while increasing donations from Wall Street by 50 percent. That money helped the Democrats gain power in Congress, elevated Mr. Schumer’s standing in his party, and increased the industry’s clout in the capital.
AdvertisementBut in building support, he has embraced the industry’s free-market, deregulatory agenda more than almost any other Democrat in Congress, even backing some measures now blamed for contributing to the financial crisis.
Other lawmakers took the lead on efforts like deregulating the complicated financial instruments called derivatives, which are widely seen as catalysts to the crisis.
But Mr. Schumer, a member of the Banking and Finance Committees, repeatedly took other steps to protect industry players from government oversight and tougher rules, a review of his record shows. Over the years, he has also helped save financial institutions billions of dollars in higher taxes or fees.
He succeeded in limiting efforts to regulate credit-rating agencies, for example, sponsored legislation that cut fees paid by Wall Street firms to finance government oversight, pushed to allow banks to have lower capital reserves and called for the revision of regulations to make corporations’ balance sheets more transparent.
But that’s not the worst of it. Bernard Madoff, the high-wheeling investment guru who defrauded investors of more than $50 billion, was a major Schumer contributor. And Barney Frank also received a tidy sum from Madoff. As of this writing, neither has offered to return the money.
In response to a query as to the unseemly nature of Madoff’s donations to lawmakers tasked with oversight, Mary Boyle of Common Cause says, “Until we fundamentally change the way we pay for political campaigns and get wealthy special interests out of the business of paying for political campaigns at all levels of government, we’re going to have situations like this. In an ideal world it would be against the rules for elected officials to take contributions from industries they regulate. But it’s not, and it can’t be because it would be unconstitutional.” Her solution is “a system of campaign finance that relies on small donors and limited public funding and cuts the big donors and bundlers out of the picture.”
The Republicans have another idea: embarrassing and defeating the worst of the Democratic offenders. They’ve set up a new website: friendsofblago.com. If the “culture of corruption” brought down the Republicans in 2006, Republicans hope the same will be true in 2010 for Democrats. And they are encouraged by the upset victory of Joseph Cao over William Jefferson, the indicted incumbent who kept his cash in the freezer.
Now these are not all the money scandals bedeviling Democrats. There are House Ways and Means Chairman Charlie Rangel’s tax deficiencies. Then there is Sen. Chris Dodd, whose “Friend of Angelo” discounted loan from Countrywide Mortgage has spawned Senate and Justice Department probes. It seems that everywhere you look someone in Congress is getting something they shouldn’t or not paying for something they should. The average voter concludes that there is one set of rules and financial obligations for him, and quite another for those in power. (And right now the Democrats are mostly in power.)
It is a long way to 2010. But one thing is for certain: unless the Democrats police their own, the Republicans will have a big, juicy target to shoot at. And, if they follow the money, there’s no telling how successful they will be.
Thanks for writing this most informative article. I think the pressure should be put red-hot on politicians who take money from powerful interest groups like the SEIU, that promote such acts as the “Employee Free Choice Act”. Politicians allow false meanings to paint over foundational concepts such as individual liberty with their support of groups and unions like the SEIU. Free choice does not mean that you hand over your freedom to your union leader! For politicians to be bought off with campaign money from the SEIU is criminal, and is a main reason why our country is in such financial and moral confusion.
And they call this change?
Jennifer Rubin is one of my favorite writers.
It seems to me that the DIFFERENCE between BLAGOJEVICH and ALL OTHER politicians is that he got CAUGHT. I’ll say that MANY political contributions come with strings attached regardless of party affiliation. That’s why politicians have such a bad reputation. This resembles the Martha Stewart case: so many doing it and one high-profiler gets caught. People, be honest about the whole thing!
I’m not saying that R. Blagsonofabitch is innocent.
Jennifer, your friendsofblago link needs a little attention. http://www.friendsofblago.com/ Thanks for the article. Keep up the good work!
Link fixed – thanks from the PJM editor
Dec. 9…Barack Obama…”I had no contact with the governor or his office so I was not aware what was happening.”
Because of the tense of this statement, it means nothing. This is what’s called a lawyerly remark.
The verb, “had” is totally ambiguous because it specifies no timer period.
Even if Barack said, “have had” which puts the statement in the more distant past, it would have meant nothing. To mean something tangible, Barack would have had to reference a time period.
This guy lies like the lawyer he is, and unless one is used to parsing words, the average person doesn’t pick up on this. Nobody thought to ask the question, from when to when didn’t you have any contact?
Of course the mainstream slave media won’t or is incapable of doing its job properly. It’s as if we’re left with no media.
I’m starting to realize that Barack Obama isn’t a player on the corrupt edge of Chicago politics. I’m starting to be convinced that Barack is ground zero. God help our country.
You guys should consider what we did up here in Canada:
We banned political donations from corporations, unions, and other entities to registered political parties so that only individual persons may donate to parties.
There are donation limits set, so for example organizations and individuals can donate no more than $1,100 per year to individual candidates.
To replace some of the lost money we have a modest public funding system for the parties based on the percentage of votes received.
We’ve touched on Doofus Dodd and the other “friends of Angelo” for illegally taking (seeking?) reduced rate mortgages from Countrywide.
What we don’t know is what special favors the auto industry has provided for these Congressmen of easy virtue and their family and staff members. Who would know if that new Hummer my Chief of Staff’s wife was driving or the new Mustang mu college kid was driving was actually srill owned by the manufacturer and simply on loan because, well, they are good guys and we are good guys.
These questions will NEVER be asked because the crooks are in control and a union which owns them might be embarrassed.
The obvious problem is in your last sentence. These scandals have spawned investigations. And that’s about it.
Nobody can stand reading another word by the time the investigation is over.
WHO AM I??
I was raised in one country but my father was born in another. I was not his only child. He fathered several children with a number of women.
I became very close to my mother because my father showed little interest in me. Then my mother died at an early age from cancer. Later in life, questions arose over my real name. My birth records were sketchy and no one was able to produce a reliable birth certificate.
I grow up practicing one faith, but converted to Christianity because this was widely accepted in my country. But I practice d non-traditional beliefs and did not follow mainstream Christianity.
I worked and lived among lower-class people as a young adult before I decided it was time to get serious about my life and I embarked on a new career.
I wrote a book about my struggles growing up. It was clear to those who read my memoirs that I had difficulties accepting that my father abandoned me as a child.
I became active in local politics when I was in my 30s and then burst onto the scene as a candidate for national office when I was in my 40s. I had a virtually non-existent resume, very little work history, and no experience in leading a single organization. Yet I was a powerful speaker who managed to draw incredibly large crowds during my public appearances.
At first, my political campaign focused on my country’s foreign policy.. I was critical of my country in the last war. But what launched my rise to national prominence were my views on the country’s economy. I had a plan on how we could do better. I knew which group was responsible for getting us into this mess.
0A
Mine was a peoples campaign. I was the surprise candidate because I emerged from outside the traditional path of politics and was able to gain widespread popular support. I offered the people the hope that together we could change our country and the world.
I spoke on behalf of the downtrodden including persecuted minorities such as Jews, but my actual views were not widely known until after I became my nations leader. However, anyone could have easily learned what I really believed if they had simply read my writings and examined those people I associated with. But they did not.
Then I became the most powerful man in the world And the world learned the truth.
Who am I?
Adolf Hitler
Don’t forget Iraq re 2006.
LOL
Personally, I think anyone who would celebrate tearing down our government right now is an idiot.
Sheer idiocy.
We better hope this administration is competent.
Those who don’t get that?
Sheer idiots.
also the dems have two key things the republicans don’t: media and organization, watch now as the gov quietly goes away without hurting anyone and franken gets sworn in.
what ever happened to Obamas aunt?
“Her solution is “a system of campaign finance that relies on small donors and limited public funding and cuts the big donors and bundlers out of the picture.””
But would this pass the constitutional test? Bundlers might, but barring big donors (or limiting the amount they can give) seems to violate the free political expression protected by the 1st Amendment.
So many big news stories about corruption that the pathetic mainstream media are self-censuring.
Yeah;
Paparazzi finally doesn’t know which way to turn,
they leave the office and flip a coin.
But every article I read about Gov. BLAGOJEVICH never mentions he is a Democrat.
Do they know Blagojevich is a Democrat???
I just wish Someone would remind them Blagojevich is still a DEMOCRAT.
Were it a Republican Governor,
the lead article would say:
We have a ******REPUBLICAN******* gov. ______________in deep Shiite trying
to sell a *****REPUBLICAN****** senate seat.
Besides being attached to corrption, for the good of the people, Barack and Rahm, should also be attached to lie detectors. They’d come out so dirty that even new and improved Tide with bleach couldn’t begin to get the stains of corruption out of their hearts and souls.
Instead of being in front of the camera for the next four years, these two corruptable characters deserve to be behind bars.
It seems like, thanks to George W. Bush’s “New Tone” method of dealing w/democrats, that we only allow Repub’s to be prosecuted. Evidently “W” has instructed the DoJ, “hands off democrats – even if they’re obviously flagrant law breakers”. But “W” has also instructed the DoJ, “hey, any Border Patrol Agent that even musses the hair of a drug runner bringing a load of drugs across the Rio Grande, these agents will be prosecuted to the fullest extent of the law! Hee, hee.” Darvin Dowdy
Is it possible to find a way to alter poll results? I can’t understand it – the more proof there is that he is dishonest, the more people seem to support him. It doesn’t make sense.
Monday, December 15, 2008
The Rasmussen Reports daily Presidential Approval Index for Monday shows that 43% of the nation’s voters now Strongly Approve of the way Barack Obama is handling the role of President-elect while 16% Strongly Disapprove. Those figures give Obama a +27 rating, just one point below his highest rating yet.
Despite the Blagojevich debacle in his home state of Illinois, 37% of voters nationwide say that Obama is more ethical than most politicians.
…37% of voters nationwide say that Obama is more ethical than most politicians…
The bar is not set that high.
“It is a long way to 2010. But one thing is for certain: unless the Democrats police their own, the Republicans will have a big, juicy target to shoot at. And, if they follow the money, there’s no telling how successful they will be.”
That is one of the most ignorant comments (and article) I’ve ever seen. Just look at all of the Democratic money (and moral) scandals that have been ignored by the media and the “wise” (heh heh) people of this country for decades. When a Democrat gets caught with his hands in the cookie jar, Americans shrug their shoulders and say “they’re all crooks, what are ya gonna do ?” But when a Republican gets nailed for the same type of thing, it’s a national outrage. Republicans can shoot at all of the big juicy targets they want, but it’ll never work. How dare a Republican point out a Democratic scandal though………I’m a terrible Republican and I’m proud of it. In your face, Dems
should be our new motto.
Jennifer -
First order of business – let us all pronounce the family name of the Governor of Illinois as it WAS in his “Old Country” -
“BLAH–GO–YEH–VITCH”
As for corruption – it is Bi-Partisan, which is to say “human.” Discussion?
-S-
There is no story here, this is a stupid govervor from one state. Not national, not the entire Dem party. Keep your eye on the national scene. We’ve got the right man in the White House now, so don’t worry about sideshow antics, and political drama. If you people haven’t been paying attention, we’ve got far too many problems to work on than the same old partisan politics. I think Republicans enjoy playing politics and ignoring really trying to getting anything done. God willing we can keep them out of office for decades.
We’re waiting for the Maddoff bailout.
Just wait.
Obama is free to talk to the gov.of illinois about replacing who he recommends to take his place and it is the same in every state. No money has changed hands so not a single law has been broken.It is called a bungled investigation and is that the reason behind the patriot act to be able to wire tap demacrats and republicans so they can try to bring out the dirt to win a senate seat. if it smells like watergate and looks like watergate then it is just that another watergate..too bad repubs your just grabbing at straws
#24 obviously must be drinking the commierat party kool aid. blago is just a symptom of the entire Daley machine in Chicago. And Obamascum and Rahmbonehead are part of that Machine. dont kid yourself fool. Bush might have been too nice, but Obamascum and his ilk are just plain a-holes. Any demonrat out of Chicago is corrupt. Its part of doing biz there. Look at the sale of the baseball team. does anyone reallythink it takes 2 yrs to sell a baseball team? nah-its the politicians with there hands out using there authority on tax issues holding up the cubs sale. the cubs arent “playing ball” with Blago and the Daley machine, so the pols are screwing with the ballparks property taxes until the cubsa engage in some “pay to play”. And thats the culture obamascum comes from. the Daley-Soros way of doing business. most of us call it corruption or gaming the system.
Thanks you for the article. Has anyone read The Case Against Obama? He is up to he’s eyeballs in paybacks and kickbacks. I am seeing how coruption works in Massachusetts. From what I read it’s worse in Ill. Give you an example, Teachers Unions, why would the Democrats fight the voucher system when a group of Aferican American parents in DC protested Ted Kenndy (D) and his vote against vouchers? These partents want out of the public school system because they children are not getting educated. Why did Teddy do it, the real question is how much money did he recieve for the Teachers Union. Sad but true.