Media coverage of an omnibus spending bill that rolled back key financial services regulations ignored the amount of money the financial services industry spent helping elect members of Congress in 2014. In fact, the industry lobbying to eliminate the regulation spent $436 million on federal candidates during the midterm elections.
Spending Bill Coverage Ignores Hundreds Of Millions Invested By Financial Regulation Opponents
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Spending Bill Avoids Government Shutdown But Rolls Back Financial Regulations
NPR: Spending Bill Faced Criticism For “Easing Rules On Campaign Finance And The Banking Industry.” According to a December 11 blog by NPR, the more than $1 trillion spending package barely passed through the House of Representatives after facing intense pressure from many Democrats for surreptitiously including regulatory changes “easing rules on campaign finance and the banking industry.” The blog continued:
Rep. Nancy Pelosi spoke out against the bill in the House earlier Thursday, sharply criticizing it for altering rules in the Dodd-Frank financial reform law to let banks place both standard accounts and accounts that handle riskier derivative trades under the protection of the Federal Deposit Insurance Corp.
“I was so really heartbroken ... to see the taint that was placed on this valuable appropriations bill from on high,” Pelosi said. She told her colleagues that anyone voting for the legislation would be putting their name next to what she called “a ransom” and “blackmail” that would profit Wall Street. [NPR, 12/11/14]
Coverage Of The Spending Debate Fails To Connect Dots Between Financial Deregulation And Campaign Contributions
AP Failed To Note Campaign Donations Connected To Bank Regulations Rolled Back In Spending Bill. A December 12 Associated Press article reported,“One provision particularly galling to many Democrats would relax new bank regulations that force riskier trades in financial instruments known as derivatives into separate affiliates unprotected by deposit insurance.” AP failed to report on the amount of money banks -- which have lobbied for repeal -- spent during the election. [Associated Press, 12/12/14]
LA Times Offered Little Context On Opposition To Financial Deregulation. A December 11 Los Angeles Times article profiling the spending standoff noted that Democrats “fumed” about provisions tucked into the bill to expand campaign contributions and loosen regulations on credit derivatives trading, but made no mention of the enormous campaign investments from the financial sector. [Los Angeles Times, 12/11/14]
NY Times Made No Mention Of Political Donations From Industry Benefitting From Deregulation. A December 11 article in The New York Times detailed in-fighting among Democrats and Republicans opposed to the spending bill, including opposition to “a provision in the bill that would roll back regulation of the Dodd-Frank Act.” The article failed to mention the record-breaking midterm political contributions from the financial sector, which stands to benefit from less oversight. [The New York Times, 12/11/14]
USA Today's Congressional Coverage Also Ignored Campaign Contributions From Financial Sector. A December 12 article by USA Today claimed that Democrats “derailed” the spending bill “after lawmakers rebelled over provisions” that would “roll back regulations on Wall Street.” The article did not indicate any connection between financial deregulation and political investments from the financial sector. [USA Today, 12/12/14]
Wash. Post Discussion Of Spending Bill Glossed Over Financial Sector Contributions. A December 11 Washington Post article detailing Democratic opposition to financial deregulation provisions including the spending bill failed to mention what, if any, impact campaign contributions from the financial sector had in ensuring the controversial legislative carve out. [The Washington Post, 12/11/14]
Wall Street Journal Acknowledges That Banks Supported Changes To Dodd-Frank. According to a December 11 article in The Wall Street Journal, JPMorgan CEO James Dimon “called lawmakers Thursday to advocate for the provision” removing part of the Dodd-Frank Act. The Journal noted that “Banks have long sought the change,” but did not mention the enormous political investments made by banks and other financial sector interests. [The Wall Street Journal, 12/11/14]
ABC's World News Offered Few Details On Fight Over Spending Bill. On the December 11 edition of ABC's World News, host David Muir offered less than 30 seconds of analysis of the spending bill and made no mention of the influence of campaign contributions from the financial sector in shaping provisions to roll back regulation. [ABC News, World News, 12/11/14]
CBS' Evening News Glossed Over Effect Of Financial Sector Contributions. On the December 11 edition of CBS' Evening News, host Scott Pelley dedicated just a few seconds to the spending bill. CBS noted that “some Democrats balked at additions [to the legislation] that would weaken Wall Street regulation,” but chose not to discuss how Wall Street's campaign contributions might have influenced the legislative process. [CBS News, Evening News, 12/11/14]
NBC's Nightly News Detailed Opposition To Spending Bill. On the December 11 edition of NBC's Nightly News, host Brian Williams and NBC correspondent Kelly O'Donnell spent more than two minutes discussing the legislation and its opponents in both the Democratic and Republican parties, but offered no analysis of the impact of enormous campaign contributions from the financial sector. [NBC News, Nightly News, 12/11/14]
Financial Sector Led All Industries During Record Midterm Contribution Cycle
Center For Responsive Politics: Financial Sector Poured $436 Million Into 2014 Midterm Elections. According to the Center for Responsive Politics, the combined campaign contributions of the financial sector (including insurance and real estate) amounted to $435.9 million during the 2014 midterm election cycle. Finance was the largest contributing sector by far, and overwhelming favored the Republican Party:
[Center for Responsive Politics, OpenSecrets.org, accessed 12/12/14]
Center For Responsive Politics: Securities And Investment Firms Accounted For $176 Million In Contributions. According to the Center for Responsive Politics, the securities and investments industry led all industries and interest groups in total midterm spending during the 2014 election cycle. These firms contributed more than $176 million during the election, again overwhelmingly favoring the Republican Party:
[Center for Responsive Politics, OpenSecrets.org, accessed 12/12/14]
Center For Responsive Politics: More Than 60 Percent Of Contributions From Wall Street Went To GOP. According to the Center for Responsive Politics, Wall Street contributed $25.1 million to races for the House of Representatives alone in 2014. Of that total, more than 60 percent went to Republican candidates. [Center for Responsive Politics, OpenSecrets.org, 11/3/14]
The summary of this post has been updated for clarity.