People For the American Way

Wall Street Giveaway in Spending Bill is Big Money Political Influence at its Worst

It’s hard to know where to begin when running down the list of harmful special interest giveaways in the omnibus spending bill narrowly passed by the House yesterday. Earlier this week, we wrote about a rider in the bill that would allow the amount of money rich donors can give to political parties to skyrocket. The legislation moving through Congress also includes a provision that would have the effect of allowing mountaintop mining companies to keep filling Appalachian streams with toxic waste. Yet another rider is a “Wall Street giveaway,” actually drafted by Citigroup’s lobbyists, that would repeal a piece of financial regulation and let banks take part in more kinds of high-risk trading deals with government backed money.

Sen. Elizabeth Warren railed against the Wall Street rider on the Senate floor:

[Americans] see a Congress that works just fine for the big guys, but it won’t lift a finger to help them. If big companies can deploy armies of lawyers and lobbyists to get the Congress to vote for special deals that benefit themselves, then we will simply confirm the view of the American people that the system is rigged.

It is, as Sen. Warren says, hard not to think that “the system is rigged” when members of Congress use a spending bill to sneak through major policy shifts that benefit wealthy political donors, Wall Street executives, and big businesses, while leaving the majority of Americans with an even weaker political voice.

This is especially true when you consider that those who voted for the rider-filled spending deal were, by and large, the members who received bigger contributions from the benefitting industries. The Washington Post compared the House spending bill votes with Center for Responsive Politics data on campaign contributions to each representative from the finance, insurance, and real estate industries. What they found is disheartening, but not surprising:

On average, members of Congress who voted yes received $322,000 from those industries. Those who voted no? $162,000.

And that doesn’t even take into account the dark money whose source is unknown to the public (but likely known by the officials who benefit from it).

It’s one more example of the influence that money can buy in our current system, where big gifts from corporate spenders pave the way for corporate political victories. When Wall Street lobbyists can literally write the laws they want, no matter the impact on ordinary Americans, it’s clear that we need serious reform to the rules governing money in politics.