Top bailed-out firms continue lobbying

 

Wednesday, Apr 22,2009, 11:47:36 AM   Click:

WASHINGTON_The first 10 recipients of the $ 700 billion financial bailout spent about $ 9.5 million to the federal government pressure during the first three months of the year.

The largest expense was released on bail-out of automobiles General Motors Corp., which spent $ 2.8 million lobbying in the first quarter of 2009. She received $ 13.4 billion in government loans and could get over $ 5 billion, according to a government report released Tuesday.

Failed insurance giant American International Group Inc and banks Citigroup Inc. and JPMorgan Chase & Co. each reported spending more than $ 1 million to influence the federal government, they lived off the money this year. AIG has received $ 40 billion bailout of the fund, while Citigroup received $ 50 billion and JPMorgan $ 25 billion.

The lobbying has been revealed to the public in the reports must be filed with the Congress. This year's first quarterly report is due Monday.

Other major recipients of money from the so-called Troubled Assets Relief Program are Bank of America Corp., which has $ 660,000 in lobbying expenses, while receiving its $ 45 billion of aid; Wells Fargo & Company, with $ 700,000 in lobbying fees and $ 25 billion bailout fund, Goldman Sachs, which spent $ 670,000 while receiving its $ 10 billion and Morgan Stanley, which spent $ 540,000 but also get 10 billion dollars in aid.


PNC Financial Services Group, has spent $ 135,000 _ nearly double what he did at the end of last year _ on lobbying, while receiving $ 7.8 billion rescue, while U.S. Bancorp spent $ 170,000 on lobbying and received $ 6.6 billion in government assistance.

Reports indicate that most of the bailed-out firms have increased their pressure at least slightly since last year. Seven passes over to influence the government by the last quarter of 2008.

The highest increases were outside the PNC by Goldman, who spent more than 34 percent on lobbying than it did at the end of last year, Wells Fargo, which spent about 21 percent more, and JPMorgan, which put pressure on 19 percent more. AIG has also spent approximately 16 percent more money to interact with government, despite the "non-lobbying" policy it adopted last year after receiving repeated bailouts.

AIG said in its filing that it still had to devote considerable resources with officials in the first three months of the year. The communication was in response to requests and to correct misinformation, "said the company. "According to AIG lobbying policy, the company has no lobbying activity with respect to federal legislation in the first quarter of 2009."

The information also indicates that AIG has fired several lobbyists since the beginning of the year, including the power firm Akin Gump Strauss Hauer & Feld, the eminent Republican DC Navigators and The Washington Tax Group.

Among the companies that have reduced their lobbying has been Bank of America, which reduces its costs by about 20 percent, and GM, which spent 15 percent less than during the last quarter of 2008.