Washington Babylon — September 15, 2008, 10:36 am

A Bipartisan Guide to the Financial Collapse: Who’s not taking money from Merrill and Lehman?

“Both the Republicans and Democrats have given the financial services industry everything it wanted. The finance sector has endless amounts of money to influence politics and can outgun the bank regulators every time.” That was Richard Christopher Whalen, Managing Director of Institutional Risk Analytics, in an interview here last fall–which goes a long way towards explaining how we got to today’s unfolding news, with Merrill Lynch being sold to Bank of America for roughly $50 billion and Lehman Brothers filing for bankruptcy protection.

Let’s take a look at the latest casualties in the collapsing financial sector. Opensecrets.org describes Merrill Lynch as having been “a dominant voice in efforts to deregulate the financial services industry.” During the last two decades, the company and its employees have donated nearly $14 million to political campaigns, with about two-thirds of that going to Republicans (that gap narrowed dramatically after Democrats took control of congress in 2006).

Meanwhile, the firm has shelled out nearly $40 million for lobbyists in the last decade alone, with its own in-house efforts supplemented by a host of hired beltway firms. The firm’s lobbyists have included Democrats like:

  • Jeff Peck, described by The Hill as the consultant “Wall Street turns to… for representation in the Democratic-controlled Congress” and who lobbied for the firm’s “blueprint” for regulatory reform;
  • Carmencita Whonder, the former principal adviser on the Senate Banking Committee to Senator Charles Schumer; and
  • Tanya Lombard, whose previous employers include Philip Morris and Congressman William “Cold Cash” Jefferson. Last year, Merrill hired former Tennessee Congressman Harold Ford as a vice chairman and senior policy adviser.

Merrill’s G.O.P. lobbyists have included Judy Black, wife of key McCain aide Charlie Black, and Vicki Hart, a member of the Women for McCain Steering Committee.

It’s the same rough picture over at Lehman Brothers. The firm, says Opensecrets.org, “has built a strong financial relationship with politicians over the years and coincidentally ranks fourth in the largest contributors in the race for the White House.” Barack Obama has received $395,600 from Lehman and its employees, while John McCain has taken in $117,500.

A total of 271 current members of Congress have received donations from Merrill and its employees, collecting $3 million since 1989, with 72 percent going to Democrats. But GOP Congressman Mike Castle, of the House Financial Services Committee, is the No. 1 recipient of the firm’s PAC, with $38,500 in donations since 1993.

Lehman’s lobbying expenditures since 1998 come to roughly $6 million. Its hired guns have included Vicki Hart from the McCain campaign, David Urban, a former chief of staff for Senator Arlen Specter; and Carlyle Thorsen, a former chief of staff to Tom DeLay. On the Democratic side there’s Andrew Athy, a former counsel to House Energy Committee chairman John Dingell, and Andrew Eskin, a one-time legislative director to Senator Richard Bryan of the Banking Committee.

So how will the presidential campaigns and congressional candidates seek to politically exploit the collapse of the financial sector? Very, very carefully.

Share
Single Page

More from Ken Silverstein:

Commentary November 17, 2015, 6:41 pm

Shaky Foundations

The Clintons’ so-called charitable enterprise has served as a vehicle to launder money and to enrich family friends.

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

March 2016

Save Our Public Universities

= Subscribers only.
Sign in here.
Subscribe here.

The Rogue Agency

= Subscribers only.
Sign in here.
Subscribe here.

Mad Magazines

= Subscribers only.
Sign in here.
Subscribe here.

Killer Bunny in the Sky

= Subscribers only.
Sign in here.
Subscribe here.

Bird in a Cage

= Subscribers only.
Sign in here.
Subscribe here.

The Hidden Rivers of Brooklyn

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
Save Our Public Universities·

= Subscribers only.
Sign in here.
Subscribe here.

“Whether and how we educate people is still a direct reflection of the degree of freedom we expect them to have, or want them to have.”
Photograph (crop) by Thomas Allen
Article
New Movies·

= Subscribers only.
Sign in here.
Subscribe here.

The Force Awakens criticizes American imperialism while also celebrating the revolutionary spirit that founded this country. When the movie needs to bridge the two points of view, it shifts to aerial combat, a default setting that mirrors the war on terror all too well.”
Still © Lucasfilm
Article
Isn’t It Romantic?·

= Subscribers only.
Sign in here.
Subscribe here.

“He had paid for much of her schooling, something he cannot help but mention, since the aftermath of any failed relationship brings an ungenerous and impossible impulse to claw back one’s misspent resources.”
Illustration by Shonagh Rae
Article
The Trouble with Iowa·

= Subscribers only.
Sign in here.
Subscribe here.

“It seems to defy reason that this anachronistic farm state — a demographic outlier, with no major cities and just 3 million people, nine out of ten of them white — should play such an outsized role in American politics.”
Photograph (detail) © Justin Sullivan/Getty Images
Article
Rule, Britannica·

= Subscribers only.
Sign in here.
Subscribe here.

“This is the strange magic of an arrangement of all the world’s knowledge in alphabetical order: any search for anything passes through things that have nothing in common with it but an initial letter.”
Artwork by Brian Dettmer. Courtesy the artist and P.P.O.W., New York City.

Number of people who attended the World Grits Festival, held in St. George, South Carolina, last spring:

60,000

The brown bears of Greece continued chewing through telephone poles.

In Peru, a 51-year-old activist became the first former sex worker to run for the national legislature. “I’m going to put order,” she said, “in that big brothel which is Congress.”

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Two Christmas Mornings of the Great War

By

Civilization masks us with a screen, from ourselves and from one another, with thin depth of unreality. We habitually live — do we not? — in a world self-created, half established, of false values arbitrarily upheld, largely inspired by misconception, misapprehension, wrong perspective, and defective proportion, misapplication.

Subscribe Today