Citigroup Bailout — Think Lobbyists Had Anything to do With It?

Mon, November 24, 2008

Moms & Politics


One question that keeps getting asked, but really hasn’t been answered has been, ” If the government is so willing to bail-out Wall Street, where is the help for Main Street?”

I think the problem is that Main Street doesn’t give a lot of money to campaigns and or lobbyists.

Citigroup? According to OpenSecrets, in 2008 Citigroup paid close to $6 million to lobbyists on their behalf.

I have no doubt if I had a little extra scratch to give to someone to advocate for me over the long term, PunditMom blog could get a bail-out, too. Here’s a little interesting tidbit on Citigroup from that site:

“Citigroup is the world’s second largest financial services firm, with $1 trillion in assets. One of the company’s subsidiaries is brokerage firm Salomon Smith Barney, which has been plagued with lawsuits and government investigations into its financing of bankrupt Enron and ailing WorldCom. In 1998, Citigroup’s lobbying helped repeal a federal law that prevented banks from getting into other businesses, allowing the company to acquire an insurance firm. Citigroup continues to lobby on a number of issues, including financial privacy, bankruptcy reform and terrorism reinsurance.”

I’m not saying we shouldn’t figure out who really needs a bail-out and who doesn’t, but with a history like this, why should we believe that Citigroup was OH SO surprised at new financial problems that they couldn’t possibly have foreseen??

And how do we keep them in line in the future?

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2 Responses to “Citigroup Bailout — Think Lobbyists Had Anything to do With It?”

  1. Sarah Says:

    They should have, instead of paying lobbyists, kept the money in the company. SIX MILLION in one year, when they claim to have 1 TRILLION in assets?
    Gah! This is getting more and more insane, frustrating and confusing as time passes on.

  2. Toronto real estate agent Says:

    The problem is, once such company grows too big, government would not let it fall down. Simply because they are afraid it can be connected with them in the next election (and of course some few thousand very unsatisfied clients would be asking many questions, why they weren’t protected…).
    Is there any solution? Hardly. While the FED works as a lender of the last resort, big companies will feel safe and will do whatever they want (and I don’t blame them…)
    Take care
    Elli


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