Friday, February 06, 2009
TARPS ROI 258,449 percent - TARP Recipients Paid Out $114 Million for Politicking Last Year
WASHINGTON--(This release has been corrected to reflect that Bank of America has received $45 billion, not $55 billion, from the TARP program. The $45 billion includes $10 billion that Merrill Lynch received before being acquired by Bank of America. An earlier version of this release incorrectly added Merrill Lynch's $10 billion to Bank of America's $45 billion. Adjustments to the figures in the original release are in bold below.) The struggling companies whose freewheeling business practices have contributed to the country's economic woes are getting a lucrative return on at least one of their investments. Beneficiaries of the $700 billion bailout package in the finance and automotive industries have spent a total of $114.2 million on lobbying in the past year and contributions toward the 2008 election, the nonpartisan Center for Responsive Politics has found. The companies' political activities have, in part, yielded them $295.2 billion from the federal government's Troubled Asset Relief Program (TARP), an extraordinary return of 258,449 percent. "Even in the best economic times, you won't find an investment with a greater payoff than what these companies have been getting," said Sheila Krumholz, the Center's executive director. "Some of the companies and industries that have received payments may now consider their contributions and lobbying to be the smartest investments they've made in years." While the Treasury Department, not Congress, doles out TARP funds to specific institutions, congressional lawmakers had to authorize that money in the first place, and lawmakers will determine in the future whether to release more funds to prop up the U.S. economy. During the bill-writing process, members of Congress were able to specify to some extent where the money should go, and they have lobbied regulators to urge them to inject funds into specific banks and financial institutions, including those in lawmakers' own districts. "Taxpayers hope their money is being allocated entirely on the merits, but with Congress controlling how much money the Treasury gets to hand out, it will be impossible to completely exclude politics from this process," Krumholz said. Some of the top recipients of contributions from companies receiving TARP money are the same members of Congress who chair committees charged with regulating the financial sector and overseeing the effectiveness of this unprecedented government program. They include Sen. Chris Dodd of Connecticut, chairman of the Senate Committee on Banking, Housing and Urban Affairs (he received $854,200 from the companies in the 2008 election cycle, including money to his presidential campaign) and Sen. Max Baucus of Montana, chair of the Senate Finance Committee (he received $279,000). In total, members of the Senate Committee on Banking, Housing and Urban Affairs, Senate Finance Committee and House Financial Services Committee received $5.2 million from TARP recipients in the 2007-2008 election cycle. President Obama collected at least $4.3 million from employees at these companies for his presidential campaign.
Some, Not All, TARP Recipients Hired Lobbyists
Of the more than 300 companies that have been aided by TARP, 25 paid lobbyists a total of $76.7 million to represent them on Capitol Hill in 2008. Treasury Secretary Tim Geithner said recently that institutions collecting these funds won't be allowed to lobby the federal government going forward. In the 4th Quarter of 2008, when Congress was crafting bailout legislation, these companies spent $17.8 million on lobbying--less than what they spent in the prior three quarters, probably because they were strapped for cash.
In total, 161 companies approved for TARP money gave $37.5 million to federal candidates, parties and committees in the 2007-2008 election cycle, with 57 percent of that going to Democrats (post-election data is not yet available). The employees of these companies, rather than their political action committees, gave the bulk of that, at $26.1 million, or 70 percent. These two groups of donors seem to have differed in their partisan allegiance--individual employees gave 61 percent of their donations to Democrats, while PACs were more evenly divided, giving 51 percent to Republicans. Some of the companies to give the most in contributions, including Goldman Sachs, Citigroup, JPMorgan and Morgan Stanley, are also among the biggest donors of all time to U.S. politics.
The companies giving the most to fund lawmakers' campaigns and spending the most on lobbying efforts were also those that received the most TARP money to help them stay afloat. This includes General Motors, which spent $15 million between campaign contributions and lobbying expenditures and got $10.4 billion (more than all other companies), Bank of America (and the investment company it bought last year, Merrill Lynch), which spent $14.5 million to play politics and received $45 billion from the bailout bill; and American International Group (AIG), which spent $10.6 million and was paid out $40 billion. Citigroup was also one of the largest spenders to see a big result: between lobbying expenditures and campaign contributions, the company spent $12.5 million and got $50 billion. For a complete list of TARP recipients that spent money on campaign contributions and lobbying, see the chart below. "TARP needs to be far more transparent," Krumholz of CRP said. "Hundreds of billions of dollars have already been handed out with little more than a one-line announcement. What qualified these companies for the money they're getting? What disqualified other companies? What contact has there been between members of Congress and the Treasury? What contact have lobbyists had with Congress and Treasury? These are reasonable questions, and taxpayers deserve answers." The finance, insurance and real estate sector, including all companies and trade groups (not just those that qualified for TARP funds), spent $453.5 million on lobbying in 2008, an 8.7 percent increase from the year before. In the last quarter of '08, the sector spent $106.9 million on its influence-peddling efforts. The securities and investment industry spent $20.5 million in the 4th Quarter, insurance companies spent $36.7 million and real estate companies spent $16.5 million. And although this was a decrease from the 3rd Quarter for each of these industries, they had plenty of additional support. Trade associations in the finance, insurance and real estate sector spent $123 million on lobbying last year, more than they spent in each of the three years prior.
On its award-winning website, OpenSecrets.org, the Center for Responsive Politics tracks both campaign contributions to federal lawmakers and lobbying expenditures by organization, industry and sector. CRP calculated the numbers in this report by mashing up these databases with a list of TARP recipients accessed Feb. 2, 2009, from Treasury.gov. Post-election contribution data is not yet available but should be incorporated into OpenSecrets.org in the coming weeks. ABOUT THE CENTER FOR RESPONSIVE POLITICS The Center for Responsive Politics is the nation's premier research group tracking money in U.S. politics and its effect on elections and public policy. For 25 years the nonpartisan, nonprofit Center has aimed to create a more educated voter, an involved citizenry and a more responsive government. CRP's award-winning website, OpenSecrets.org, is the most comprehensive resource for campaign contributions, lobbying data and analysis available anywhere. For other organizations and news media, CRP's exclusive data powers their online features tracking money in politics. CRP relies on support from a combination of foundation grants and individual contributions. The Center accepts no contributions from businesses, labor unions or trade associations.
Return on Investment Total campaign contributions and lobbying by TARP recipients*
Company | Campaign Contributions, 07-08 Cycle | Lobbying Expenditures, 2008 | TARP Payment | Return on Investment |
---|---|---|---|---|
Bank of America Corp** | $5,752,630 | $8,790,000 | $45,000,000,000 | 309335% |
Citigroup Inc. | $4,799,678 | $7,660,000 | $50,000,000,000 | 401194% |
AIG | $929,774 | $9,690,000 | $40,000,000,000 | 376556% |
JPMorgan Chase & Co. | $4,778,638 | $5,390,000 | $25,000,000,000 | 245754% |
Wells Fargo & Company | $1,553,471 | $1,200,740 | $25,000,000,000 | 907601% |
General Motors Corporation | $916,142 | $14,071,000 | $10,400,000,000 | 69293% |
The Goldman Sachs Group, Inc. | $5,690,351 | $3,280,000 | $10,000,000,000 | 111378% |
Morgan Stanley | $3,689,027 | $3,120,000 | $10,000,000,000 | 146764% |
The PNC Financial Services Group Inc. | $68,525 | $0 | $7,579,200,000 | 11060389% |
U.S. Bancorp | $496,461 | $570,000 | $6,599,000,000 | 618676% |
Chrysler Holding LLC | $1,075,350 | $7,927,782 | $5,500,000,000 | 60990% |
GMAC LLC | $72,207 | $4,620,000 | $5,000,000,000 | 106460% |
SunTrust Banks, Inc. | $175,903 | $0 | $4,850,000,000 | 2757101% |
Capital One Financial Corporation | $700,161 | $1,132,000 | $3,555,199,000 | 193944% |
Regions Financial Corp. | $161,775 | $180,000 | $3,500,000,000 | 1023966% |
Fifth Third Bancorp | $149,550 | $80,000 | $3,408,000,000 | 1484544% |
American Express Company | $1,028,038 | $3,790,000 | $3,389,000,000 | 70240% |
BB&T Corp. | $262,737 | $0 | $3,133,640,000 | 1192591% |
Bank of New York Mellon Corporation | $886,701 | $558,402 | $3,000,000,000 | 207498% |
KeyCorp | $159,280 | $210,000 | $2,500,000,000 | 676893% |
CIT Group Inc. | $23,200 | $90,000 | $2,330,000,000 | 2058204% |
Comerica Inc. | $210,538 | $0 | $2,250,000,000 | 1068591% |
State Street Corporation | $152,627 | $980,000 | $2,000,000,000 | 176481% |
Marshall & Ilsley Corporation | $57,400 | $0 | $1,715,000,000 | 2987705% |
Northern Trust Corporation | $240,892 | $0 | $1,576,000,000 | 654135% |
Zions Bancorporation | $117,159 | $60,000 | $1,400,000,000 | 790151% |
Huntington Bancshares | $188,700 | $232,971 | $1,398,071,000 | 331455% |
Synovus Financial Corp. | $10,150 | $0 | $967,870,000 | 9535565% |
Popular, Inc. | $12,700 | $390,000 | $935,000,000 | 232083% |
First Horizon National Corporation | $30,050 | $0 | $866,540,000 | 2883561% |
M&T Bank Corporation | $3,500 | $10,000 | $600,000,000 | 4444344% |
City National Corporation | $262,965 | $0 | $400,000,000 | 152011% |
Webster Financial Corporation | $14,850 | $0 | $400,000,000 | 2693503% |
First Bancorp | $4,900 | $0 | $400,000,000 | 8163165% |
Fulton Financial Corporation | $5,700 | $0 | $376,500,000 | 6605163% |
TCF Financial Corporation | $103,300 | $0 | $361,172,000 | 349534% |
South Financial Group, Inc. | $29,100 | $0 | $347,000,000 | 1192340% |
Wilmington Trust Corporation | $59,850 | $0 | $330,000,000 | 551278% |
East West Bancorp | $4,800 | $0 | $306,546,000 | 6386275% |
Sterling Financial Corporation | $5,750 | $0 | $303,000,000 | 5269465% |
Whitney Holding Corporation | $27,950 | $0 | $300,000,000 | 1073245% |
Susquehanna Bancshares, Inc | $6,850 | $0 | $300,000,000 | 4379462% |
Valley National Bancorp | $950 | $0 | $300,000,000 | 31578847% |
UCBH Holdings, Inc. | $42,750 | $0 | $298,737,000 | 698700% |
New York Private Bank & Trust Corporation | $6,350 | $0 | $267,000,000 | 4204624% |
Cathay General Bancorp | $2,500 | $0 | $258,000,000 | 10319900% |
Wintrust Financial Corporation | $4,401 | $0 | $250,000,000 | 5680427% |
SVB Financial Group | $18,300 | $0 | $235,000,000 | 1284053% |
International Bancshares Corporation | $116,100 | $0 | $216,000,000 | 185947% |
Trustmark Corporation | $6,500 | $0 | $215,000,000 | 3307592% |
Umpqua Holdings Corp. | $650 | $0 | $214,181,000 | 32950823% |
MB Financial Inc. | $15,150 | $0 | $196,000,000 | 1293629% |
First Midwest Bancorp, Inc. | $1,750 | $0 | $193,000,000 | 11028471% |
Pacific Capital Bancorp | $500 | $480,000 | $180,634,000 | 37493% |
United Community Banks, Inc. | $12,250 | $0 | $180,000,000 | 1469288% |
Boston Private Financial Holdings, Inc. | $6,400 | $0 | $154,000,000 | 2406150% |
Independent Bank Corp. | $2,250 | $0 | $150,000,000 | 6666567% |
National Penn Bancshares, Inc. | $1,500 | $0 | $150,000,000 | 9999900% |
Dickinson Financial Corporation | $94,050 | $0 | $146,000,000 | 155137% |
Central Pacific Financial Corp. | $19,750 | $0 | $135,000,000 | 683444% |
Sterling Bancshares, Inc. | $9,150 | $0 | $125,198,000 | 1368184% |
FirstMerit Corp. | $4,500 | $0 | $125,000,000 | 2777678% |
Banner Corporation | $6,140 | $0 | $124,000,000 | 2019444% |
Signature Bank | $7,875 | $0 | $120,000,000 | 1523710% |
1st Source Corporation | $450 | $0 | $111,000,000 | 24666567% |
S&T Bancorp | $3,200 | $0 | $109,000,000 | 3406150% |
Park National Corporation | $10,500 | $0 | $100,000,000 | 952281% |
Old National Bancorp | $8,250 | $0 | $100,000,000 | 1212021% |
F.N.B. Corporation | $1,000 | $0 | $100,000,000 | 9999900% |
Pinnacle Financial Partners, Inc. | $29,850 | $0 | $95,000,000 | 318158% |
Iberiabank Corporation | $2,000 | $0 | $90,000,000 | 4499900% |
Plains Capital Corporation | $59,650 | $0 | $87,631,000 | 146809% |
Midwest Banc Holdings, Inc. | $2,800 | $0 | $84,784,000 | 3027900% |
Sandy Spring Bancorp, Inc. | $250 | $0 | $83,094,000 | 33237500% |
Columbia Banking System, Inc. | $2,500 | $0 | $76,898,000 | 3075820% |
TowneBank | $4,750 | $0 | $76,458,000 | 1609542% |
Texas Capital Bancshares, Inc. | $18,150 | $0 | $75,000,000 | 413123% |
Bank of the Ozarks, Inc. | $11,150 | $0 | $75,000,000 | 672546% |
Wesbanco Bank Inc. | $208 | $0 | $75,000,000 | 36057592% |
Green Bankshares, Inc. | $1,200 | $0 | $72,278,000 | 6023067% |
Virginia Commerce Bancorp | $8,850 | $0 | $71,000,000 | 802160% |
Southwest Bancorp, Inc. | $50,650 | $0 | $70,000,000 | 138103% |
Flushing Financial Corporation | $2,300 | $0 | $70,000,000 | 3043378% |
Superior Bancorp Inc. | $250 | $0 | $69,000,000 | 27599900% |
Nara Bancorp, Inc. | $2,000 | $0 | $67,000,000 | 3349900% |
First Bancorp | $2,650 | $0 | $65,000,000 | 2452730% |
SCBT Financial Corporation | $250 | $0 | $65,000,000 | 25999900% |
CoBiz Financial Inc. | $1,000 | $0 | $64,450,000 | 6444900% |
Union Bankshares Corporation | $1,000 | $0 | $59,000,000 | 5899900% |
Liberty Bancshares, Inc. | $20,900 | $0 | $58,000,000 | 277412% |
Great Southern Bancorp | $2,500 | $0 | $58,000,000 | 2319900% |
WSFS Financial Corporation | $21,550 | $0 | $53,000,000 | 245840% |
Ameris Bancorp | $1,000 | $0 | $52,000,000 | 5199900% |
State Bankshares, Inc. | $4,800 | $0 | $50,000,000 | 1041567% |
Home Bancshares, Inc. | $1,500 | $0 | $50,000,000 | 3333233% |
Fidelity Southern Corporation | $300 | $0 | $48,200,000 | 16066567% |
MetroCorp Bancshares, Inc. | $1,500 | $0 | $45,000,000 | 2999900% |
Cadence Financial Corporation | $8,250 | $0 | $44,000,000 | 533233% |
Exchange Bank | $2,750 | $0 | $43,000,000 | 1563536% |
Sterling Bancorp | $1,300 | $0 | $42,000,000 | 3230669% |
Eagle Bancorp, Inc. | $801 | $0 | $38,235,000 | 4773308% |
Bridgeview Bancorp, Inc. | $6,600 | $0 | $38,000,000 | 575658% |
OceanFirst Financial Corp. | $3,300 | $0 | $38,000,000 | 1151415% |
First Defiance Financial Corp. | $2,000 | $0 | $37,000,000 | 1849900% |
State Bancorp, Inc. | $6,850 | $0 | $36,842,000 | 537739% |
Fidelity Financial Corporation | $1,657,052 | $2,190,000 | $36,282,000 | 843% |
Yadkin Valley Financial Corporation | $1,250 | $0 | $36,000,000 | 2879900% |
West Bancorporation, Inc. | $250 | $0 | $36,000,000 | 14399900% |
Porter Bancorp | $5,000 | $0 | $35,000,000 | 699900% |
Encore Bancshares Inc. | $4,300 | $0 | $34,000,000 | 790598% |
First Security Group, Inc. | $3,350 | $0 | $33,000,000 | 984975% |
Centrue Financial Corporation | $1,000 | $0 | $33,000,000 | 3299900% |
Pulaski Financial Corp | $1,000 | $0 | $33,000,000 | 3299900% |
Peapack-Gladstone Financial Corporation | $2,300 | $0 | $28,685,000 | 1247074% |
Centerstate Banks of Florida Inc. | $500 | $0 | $27,875,000 | 5574900% |
Citizens & Northern Corporation | $700 | $0 | $26,000,000 | 3714186% |
Peoples Bancorp of North Carolina, Inc. | $2,125 | $0 | $25,054,000 | 1178912% |
Shore Bancshares, Inc. | $3,800 | $0 | $25,000,000 | 657795% |
Horizon Bancorp | $2,600 | $0 | $25,000,000 | 961438% |
Intervest Bancshares Corporation | $2,300 | $0 | $25,000,000 | 1086857% |
HF Financial Corp. | $250 | $0 | $25,000,000 | 9999900% |
Heritage Financial Corporation | $1,250 | $0 | $24,000,000 | 1919900% |
Wainwright Bank & Trust Company | $15,250 | $0 | $22,000,000 | 144162% |
Citizens South Banking Corporation | $750 | $0 | $20,500,000 | 2733233% |
First Financial Service Corporation | $7,325 | $0 | $20,000,000 | 272938% |
BNCCORP, Inc. | $5,050 | $0 | $20,000,000 | 395940% |
C&F Financial Corporation | $250 | $0 | $20,000,000 | 7999900% |
Carver Bancorp, Inc | $5,300 | $0 | $19,000,000 | 358391% |
Bar Harbor Bankshares/Bar Harbor Bank & Trust | $500 | $0 | $19,000,000 | 3799900% |
Security Federal Corporation | $1,250 | $0 | $18,000,000 | 1439900% |
ECB Bancorp, Inc./East Carolina Bank | $1,000 | $0 | $18,000,000 | 1799900% |
Timberland Bancorp, Inc. | $430 | $0 | $16,641,000 | 3869900% |
Carolina Bank Holdings, Inc. | $1,250 | $0 | $16,000,000 | 1279900% |
BankFirst Capital Corporation | $500 | $0 | $16,000,000 | 3199900% |
Monarch Financial Holdings, Inc. | $1,997 | $0 | $14,700,000 | 736004% |
Magna Bank | $2,250 | $0 | $13,795,000 | 613011% |
Morrill Bancshares, Inc. | $3,100 | $0 | $13,000,000 | 419255% |
LCNB Corp. | $1,000 | $0 | $13,000,000 | 1299900% |
OneUnited Bank | $3,550 | $0 | $12,063,000 | 339703% |
First Manitowoc Bancorp, Inc. | $2,500 | $0 | $12,000,000 | 479900% |
1st Constitution Bancorp | $2,000 | $0 | $12,000,000 | 599900% |
Pacific Coast Bankers' Bancshares | $250 | $0 | $11,600,000 | 4639900% |
Mid Penn Bancorp, Inc. | $1,800 | $0 | $10,000,000 | 555456% |
Uwharrie Capital Corp | $1,500 | $0 | $10,000,000 | 666567% |
Midland States Bancorp | $500 | $0 | $10,000,000 | 1999900% |
New Hampshire Thrift Bancshares, Inc. | $500 | $0 | $10,000,000 | 1999900% |
Citizens First Corporation | $74,700 | $0 | $8,779,000 | 11652% |
Syringa Bancorp | $750 | $0 | $8,000,000 | 1066567% |
First Sound Bank | $2,716 | $0 | $7,400,000 | 272359% |
Western Community Bancshares, Inc. | $5,600 | $0 | $7,290,000 | 130079% |
Fidelity Bancorp, Inc. | $5,100 | $0 | $7,000,000 | 137155% |
Somerset Hills Bancorp | $2,000 | $0 | $7,000,000 | 349900% |
American State Bancshares, Inc. | $5,350 | $0 | $6,000,000 | 112050% |
Patapsco Bancorp, Inc. | $1,050 | $0 | $6,000,000 | 571329% |
Seaside National Bank & Trust | $400 | $0 | $6,000,000 | 1499900% |
Northeast Bancorp | $1,000 | $0 | $4,227,000 | 422600% |
Pacific Commerce Bank | $1,500 | $0 | $4,060,000 | 270567% |
Capital Pacific Bancorp | $1,750 | $0 | $4,000,000 | 228471% |
Bank of Commerce | $15,950 | $0 | $3,000,000 | 18709% |
FPB Financial Corp. | $500 | $0 | $3,000,000 | 599900% |
Treaty Oak Bancorp, Inc. | $250 | $0 | $3,000,000 | 1199900% |
Grand Total | $37,477,300 | $76,702,895 | $305,212,309,000 | 267208% |
*TARP recipient list accessed at Treasury.gov on Feb. 2, 2009. List includes only recipients that spent money on lobbying or were associated with campaign contributions. Campaign contributions include money from PACs and individuals but do not include post-election fundraising.
**Includes data for Merrill Lynch, which was acquired by Bank of America
You can also download this data here: TARP Recipients.xls
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