Republican House Minority Leader John Boehner reports on Obama’s new bank bailout bill.
President Obama likes to say we need to clean up Wall Street. But let’s be clear: He is pushing a job-killing bailout bill for Wall Street that benefits his top financial contributor from the 2008 campaign – a firm that just happens to be under investigation by the SEC for defrauding investors.
Despite the President’s rhetoric, his support for the Democrats’ bailout bills gives big Wall Street banks a permanent, taxpayer-funded safety net by designating them “too big to fail.”
[...]Goldman Sachs, recently charged with defrauding investors, was President Obama’s top Wall Street contributor during the 2008 election cycle, donating nearly $1 million to his campaign.
- Securities & investment firms in general were the fifth largest contributor to President Obama’s 2008 campaign, donating nearly $15 million.
- Big banks also donated more than $3 million to Obama during the 2008 election cycle.
And some details about what the new bank bailout does:
- The Dodd Gives Wall Street a Pre-Existing $50 Billion Bailout Slush Fund. Sen. Dodd’s financial bailout bill would create a $50 billion ‘orderly resolution fund’ ($150 billion in Rep. Barney Frank’s bill) that could be repeatedly replenished from industry assessment.
- The Dodd Bill Gives Wall Street a Treasury-Backed Credit Line. The FDIC would be authorized to borrow from Treasury up to the amount of cash left in the ‘resolution fund’ plus 90 percent of the value of the assets of any and all too-big-to-fail firms in its control.
- The Dodd Bill Provides a Government-Guaranteed to Wall Street Debt. The FDIC would be authorized to guarantee the debt of any solvent bank, bank holding company, or affiliate in any amount subject only to an aggregate debt limit set by the Treasury Department.
- The Dodd Bill Institutionalizes Unlimited Wall Street Bailouts. The FDIC, as the resolution agency for too-big-to-fail firms, would be given wide latitude to use resources to make payments to anyone in any amounts, at their own discretion.
Now let’s hear more about the rich bankers from Goldman Sachs.
This Newsbusters article explains Goldman Sachs’ connections to the White House:
- White House Chief of Staff Rahm Emanuel used to work for Goldman Sachs.
- Treasury Secretary Tim Geithner used to work for Goldman Sachs.
And the Washington Examiner reports that:
- Former White House counsel Greg Craig is now employed by Goldman Sachs.
Wall Street banks like Goldman Sachs are often filled with Democrats.
Fannie Mae and Freddie Mac
And don’t forget that the government-backed companies Fannie Mae and Freddie Mac were run by Democrats, and they were also bailed out by the Democrats.
Freddie and Fannie used huge lobbying budgets and political contributions to keep regulators off their backs.
A group called the Center for Responsive Politics keeps track of which politicians get Fannie and Freddie political contributions. The top three U.S. senators getting big Fannie and Freddie political bucks were Democrats and No. 2 is Sen. Barack Obama.
Now remember, he’s only been in the Senate four years, but he still managed to grab the No. 2 spot ahead of John Kerry — decades in the Senate — and Chris Dodd, who is chairman of the Senate Banking Committee.
Fannie and Freddie have been creations of the congressional Democrats and the Clinton White House, designed to make mortgages available to more people and, as it turns out, some people who couldn’t afford them.
Fannie and Freddie have also been places for big Washington Democrats to go to work in the semi-private sector and pocket millions. The Clinton administration’s White House Budget Director Franklin Raines ran Fannie and collected $50 million. Jamie Gorelick — Clinton Justice Department official — worked for Fannie and took home $26 million. Big Democrat Jim Johnson, recently on Obama’s VP search committee, has hauled in millions from his Fannie Mae CEO job.
Political contributions and bailouts. Is there a connection?