Corporate Welfare

Jamie Dimon, CEO of JPMorgan Chase & Co., who received such love from Senators, especially Republican senators, in a recent Senate hearing, owes some of his fortune to taxpayers. According to Bloomberg and research by the International Money Fund, JPMorgan "receives a government subsidy worth about $14 billion a year....[which] helps the bank pay big salaries and bonuses...[and] distorts markets, fueling crises such as the recent subprime-lending disaster and the sovereign-debt debacle that is now threatening to destroy the euro and sink the global economy." Read the entire article at: "Dear Mr. Dimon, Is Your Bank Getting Corporate Welfare?," to get a step-by-step discussion of how corporate welfare affects us all. (h/t Think Progress: Economy)

According to the Center for Responsive Politics, "the financial sector is far and away the largest source of campaign contributions to federal candidates and parties." In the 2011-2012 cycle so far, Mitt Romney has received far more contributions than any other presidential candidate: $19, 222, 965 to Obama's $8, 414, 629. Of the top 20 recipients of the financial industry's largesse, 14 are Republicans and 6 are Democrats. Insurance heads the financial industry PACs in contributions, with 62% of its contributions going to Republicans this year, compared to 38% to Democrats.

The financial industry is hedging its bets, of course, but it looks as if the Republicans are the favored horse in this year's race. Wonder what the industry will expect in return. Not.

Sucking up to Wall Street as Usual

Jamie Dimon, CEO of JP Morgan, testified before the Senate Banking Committee today about the more than $2 billion (and rising) the bank recently lost in risky hedges. Instead of being intensely questioned and sermonized on the need for regulation, Dimon

received a warm welcome from Republican lawmakers, suggesting that his status as Washington’s favorite banker remains intact. Some Republicans praised JPMorgan for navigating the financial crisis better than other Wall Street firms, and even sought Mr. Dimon’s advice on fixing the economy. ["JPMorgan's Chief Says Clawbacks 'Likely,'" in  The New York Times, 13 June 2012]

Senator Jim DeMint (R-SC) told Dimon that lawmakers "can hardly sit in judgment of your losing $2 billion."

Really? Well, what's the use of our lawmakers, huh?

Yep, just the person to trust.....if you're hoping for some Wall Street money for your political campaign. And, of course, the connections between JP Morgan and the Senate Banking Committee are very close and entangled; folks who work for our lawmakers on that committee become lobbyists for the financial institution. Kiss, kiss....

See Cora Currier's details of the revolving door in her article, "Charting the Cozy Connections between JP Morgan and the Senate Banking Committee," on ProPublica's website.