More Congressional Sleaze: Boehner and Cantor own stock in Goldman SachsPosted: November 23, 2011 Filed under: investment banking | Tags: Bohenr, Cantor, Congress members who own Goldman Sachs Stock, corruption, Fraud, Goldman Sachs, Ryan 7 Comments
Seth Cline of Open Secrets Blog reports some extremely disturbing connections between Congressional leaders and Goldman Sachs. I think it’s time for a law that places congressional investment accounts into a blind trust.
According to research by the Center for Responsive Politics, 19 current members of Congress reported holdings in Goldman Sachs during 2010. Whether by coincidence or not, most of these 19 Goldman Sachs investors in Congress are more powerful or more wealthy than their peers, or both.
Nine of them sit on either the most powerful committee in their chamber or committees charged with regulating the Wall Street giant. Moreover, seven of them are among the 25 wealthiest members of their respective chambers, according to the Center’s research.
And of the six lawmakers who fall into neither category, two are the most influential Republicans in the U.S. House of Representatives: House Speaker John Boehner (R-Ohio) and House Majority Leader Eric Cantor (R-Va.).
Altogether, the 19 had at least $480,000 and as much as $1.1 million invested in Goldman Sachs in 2010, the most recent year personal finance data are available. That’s an average of about $812,900 for these 19 lawmakers’ holdings combined.
Lawmakers are only required to report their personal assets and liabilities in broad ranges, meaning it’s impossible to know the precise value of these holdings. The Center uses the minimum and maximum values listed on the filings to calculate an average value for each asset and liability.
But these financial interests are not a one-way street: Goldman Sachs employees and its political action committee have contributed about $124,000, combined, to a dozen of the lawmakers who reported holdings in the company in 2010, according to the Center’s research. This includes all money given during the 2010 election cycle and thus far in 2011.
So, not only do Boehner and Cantor get donations from Goldman Sachs, they are also stock holders. No wonder they want to get rid of the Volcker Rule. Looks like Paul Ryan is an investor also.
In the leadership category are names such as Boehner and Cantor, each of whom has an average $32,500 invested in Goldman.
Goldman Sachs’ employees, meanwhile, have also contributed heavily to Boehner and Cantor.
Boehner has received $29,500, and Cantor $48,000, from them since 2009, according to the Center’s research.
Other Goldman investors with this kind of power include two members of the Joint Select Committee on Deficit Reduction, better known as the debt supercommittee.
The first, Sen. Jon Kyl (R-Ariz.), reported $1,177 invested in Goldman in 2010, and, as minority whip, is the second highest ranking Republican in the Senate.
And not only is Kyl a member of the supercommittee and party leadership, he also sits on the Senate Finance Committee, which regulates Goldman Sachs and its peers on Wall Street.
Another one of Kyl’s colleagues on the supercommittee, Rep. Fred Upton (R-Mich.), is also a Goldman investor.
Upton had an average of $8,000 invested in the company in 2010, according to the Center’s research.
Rep. Paul Ryan (R-Wis.), is another influential Goldman shareholder in Congress.
Ryan sits on two very important House committees: the Budget Committee, which he chairs, and the Ways and Means Committee.
Ryan reported an average of $8,000 invested in Goldman and has received $5,800 from the company’s employees so far this year after receiving $10,000 from them during the 2010 cycle, according to the Center’s research.
One of Goldman Sachs’ most valuable congressional investors is Rep. Randy Neugebauer (R-Texas), whose average of $550,000 in investments in the company is far and away the most in Congress.
Additionally Neugebauer sits on the House Financial Services Committee, which oversees Wall Street and the securities and investment industry of which Goldman is a part.
That also helps explain the $9,500 Goldman Sachs employees have contributed to Neugebauer since January 2009 through the company’s political action committee.
Rep. Gary Peters (R-Mich.) is another Goldman Sachs investor on the Financial Services committee. He has an average of $8,000 invested and has received $4,500 from the company this year from its PAC.
There’s a substantial list of Republicans listed that I didn’t include in the list above.. Democrats holding GS stock include Sens. Ben Nelson (D-Neb.), Claire McCaskill (D-Mo.), Sheldon Whitehouse (D-R.I.) and Sen. Mark Warner (D-Va.). The details are on a spreadsheet here.
Can you really believe that they’re acting in our best interest when their wealth is vested in stopping GS from doing suspect things like selling lemons to clients and placing side bets that the lemons lose? I sure don’t. The Volker Rule places trading restrictions on institutions like GS. It controls the types of transactions that GS can do in its proprietary trading like the example I just gave you. They settled fraud charges in the US with the SEC and are under investigation in the UK and some of Europe. You may recall the unit and testimony before congress. The US settlement came in 2010. That’s the same year that these holdings were found by the Center for Responsive Politics.
The FSA opened its investigation into the bank in April after the SEC charged Goldman with misleading investors in a complex mortgage-backed security known as Abacus. The SEC claimed that Goldman had failed to disclose that a hedge fund that was betting against the security had selected some of the mortgage loans included in the portfolio, costing investors as much as $1bn.
The largest fine handed down by the UK regulator came three months ago, when JPMorgan paid a £33.3m for failing to keep client money in separate accounts.
Goldman, the world’s best-known investment bank, has seen its reputation tarnished in recent months as questions continue to swirl over whether it favoured the interests of some clients at the expense of others during the financial crisis.
The bank’s business model is also under pressure amid volatile markets and regulatory reforms that have forced it to shut some of its highly profitable “proprietary” trading operations.
No wonder we don’t see perp walks. These folks have skin in GS. We are so f’d.
I can’t say I’m surprised, but I’m completely disgusted. Thanks for this info, Dak.
This is a second for Cantor, as he stood or stands to make money of govermnet failure is I am not mistaken. Wow, and Dak, it is too bad they don’t have a sign stating they are in office for themselves and no one else.
They continue to go lower and lower, yet stand there saying they have values…maybe the word values to them means to value ONLY their own interests and what is in it for them….
Goldman sucks — a major parasite — and the Congresscreeps who protect the parasitic class — they should have their pensions revoked and any GS investment should become property of the Government.
That’s not a bad idea.
It seems the Volcker Rule and the Glass-Stegall Act are something the Occupy movement should really embrace.
I will always applaud the truth. Kudos Mrs. Palin!!
So does this mean that there are countries that act responsibly?