Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Lower Political Spending in 2009

Contributions from the majority of large U.S. financial institutions were reduced significantly in 2009, as giving to political action committees dropped 41 percent from $3.4 million given in 2007, according to the Federal Election Commission. Political giving by banks topped off at $2 million for 2009.

This isn’t thought to be for the purpose of conserving funds, but rather in order to not give the appearance of conflict of interests related to receiving billions in taxpayer dollars through the Troubled Asset Relief Program (TARP).

Among the 10 largest banks in the United States, only U.S. Bancorp increased it political giving, spending $193,500 in 2009, an increase of 40 percent for the $138,500 given in 2007.

Goldman Sachs was the largest political contributor in 2007 of the large banks, spending $465,500. In 2009 they were also among those that cut back the most on political giving, decreasing spend to $173,400, a 63 percent decline.

Morgan Stanley also cut back in a major way on its political contributions in 2009, cutting giving from $449,300 in 2007 to $236,000 in 2009, a 47 percent cut.

The largest bank in America also cut back on political spending, as its contributions declined from $453,122 in 2007 to $291,500 in 2009, a 36 percent drop for Bank of America.

Oddly enough, the Democrats have been trying to make political giving an issue, as the giving from the securities industry overall stood at $157 million in 2008.

It’s odd because while the Democrats have chastised Republicans for opposing legislation which would increase regulations even more in the financial industry, giving the appearance that Republicans have been the primary recipients of political giving, the Democrats have 
in fact received the bulk of political contributions from the banking industry, as 57 percent went to the Democrats in 2008 and close to 66 percent to Democrats in 2009.

Paul Lindsay, a spokesman for the National Republican Congressional Committee, addressed this issue recently stating: “How soon Democrats have forgotten that the Wall Street banks they now exploit as their ‘political winner’ are the very same ones that financed their rise to power in 2006. Unfortunately for them, these hypocritical attacks on Republicans are as ineffective as the unpopular agenda that is driving them out of power.”