Newsflash: Congressman Sees Money's Role In Politics

Yes, it is shocking, unbelievable and horrific all rolled into one. Congress is controlled by the onslaught of money, especially from those that have so much of it, the banks. O.K. so it has been going on for decades (and a couple of centuries) and it really isn't news. The only difference as of late is how much more influence banks have and the lengths they go to satisfy their greed. With more than eighteen years in Congress, Rep. Collin Peterson (D-MN) knows what is going on, and has vowed to do something about it.

From RawStory:

“The banks run the place,” Peterson told the New York Times in Monday’s editions. “I will tell you what the problem is — they give three times more money than the next biggest group. It’s huge the amount of money they put into politics.”

Peterson has introduced a bill to regulate derivatives trading — the pesky financial instruments that nearly brought down the US financial system. Derivatives involve writing insurance on various complex financial transactions, such as providing insurance to investors in the event of massive defaults on home mortgages.

But he says that Republicans have watered down his bill. He wants derivatives trading to take place on public exchanges — much like the New York Stock Exchange — rather than through private clearinghouses, which are managed by banks.

So in the end, nothing much is going to come from this. It was a good idea, but there were simply too many competing interests and the Republicans (and probably some conservative Dems) that tinkered with the bill so it does next to nothing.

Daily News Finds The City Council Colored With Money

As if we needed yet another reason for Clean Money, Clean Elections, the NY Daily News has highlighted the problem of money in politics at the level of the New York City Hall. The article won't surprise you, might not even shock you, but it is disappointing to anyone and everyone that believes those we elect to public office should make decisions based on what is best for their constituents and not just their campaign donors. Unfortunately, that is just not the case for many City Council members.

From The NY Daily News:

Councilwoman Maria del Carmen Arroyo got $33,500 from employees of a developer building a 600-unit apartment complex and shopping center in the Bronx.

Thirty-eight of the 51 Council members got some campaign cash from nonprofits to which they steered millions of dollars in taxpayer funding. The News found contributions of at least $200,000 from nonprofit employees and some board members in the last four years.

Nearly all the donations are legal, but special-interest donors often skirt the law by bundling checks from a company or corporation to raise more money. It is illegal for the bundler to repay the “donors” because that would mask the source of the funds.

Veteran lobbyist George Arzt and his colleagues at George Arzt Communications have given more than $23,000 to 17 Council members since 2005. He concedes that as long as people believe they need to contribute to have influence, the money will flow — and some pols will take advantage.

“There are elected officials who, believe it or not, will hand you [an invitation to] a fund-raiser when you leave their office [after a lobbying visit],” Arzt said. “I’m genuinely embarrassed when that happens."

And Maria Carmen del Arroyo is just one of many names listed within the piece. Bill de Blasio, Melinda Katz, Diaz, Baez, (current Public Advocate candidate) Gioia and even Garodnick. Though Garodnick was an odd twist in the story, because it highlights people raising money to stop the bullying developers that largely dictate policy in this city. I get that it is about money in politics, but that one is a stretch. Overall the Daily News does a good job. I'd mention that Chris Quinn is a big elephant in the room that they missed, but the article promised to highlight the slush fund scandal in their next investigative piece.

After an extended blogging break, I'm back at keyboard ready to type. Though I'll probably post less in the coming months, I've felt less connected to the news I've read over the last three weeks so it is something I'll keep at.