Friday, August 19, 2016

'Good to Be King': The Very Good Loans Key Lawmakers Get from Wall Street Banks

A new study identifies "a direct channel through which financial institutions contribute to the net worth of members of the U.S. Congress"—especially those ostensibly tasked with overseeing those very Wall Street entities.

The paper from London Business School professors Ahmed Tahoun and Florin Vasvari, which is based on a "unique dataset" provided by the Center for Responsive Politics (CRP), finds that members of Congress sitting on the finance committees in the Senate and the House of Representatives "report greater levels of leverage and new liabilities as a proportion of their total net worth, relative to when they are not part of the finance committee or relative to other congressional members."

The authors write that their analysis was "motivated in part by anecdotal evidence suggesting that some U.S. politicians, who are in a position to potentially affect the future performance of financial institutions that lend to them, have allegedly received preferential treatments from lenders."

In other words, as International Business Times reporter David Sirota wrote Friday: "It is good to be king."

http://www.commondreams.org/news/2016/08/19/good-be-king-very-good-loans-key-lawmakers-get-wall-street-banks

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