Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan’s Ross School of Business.
Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds.
Political influence was most helpful for poorly performing banks, the study found.
(Read more from reuters.com)
There are over 34,000 registered lobbyists in Washington D.C. Movements to restrict the actions of lobbyists are very popular, but they are treating the symptom (not to mention possibly violating the 1st Amendment), not the disease. When every aspect of American life and prosperity is dictated by Washington D.C. people MUST lobby — it’s the only way we can get some of our money back. Even businesses who have no interest in gaining an unfair advantage through the forceful hand of government must lobby or be plundered.
“The more numerous the laws, the more corrupt the government.” ~Tacitus (ca. 56–ca. 117)