Obama claims opponents of his so-called financial reform bill are on the side of the big banks. But in fact the big banks are on his side. The Center for Responsive Politics (CRL) reports Wall Street has given 63 percent of its political contributions this cycle to Democrats, up from 57 percent in 2008.
Employees of scandal-plagued Goldman Sachs have given 69 percent of their political contributions this cycle to Democrats, only slightly down from 2008, when they gave 75 percent to Democrats -- including nearly a million dollars to Barack Obama and $112,400 to Senate Banking Committee Chairman Chris Dodd. (Dodd is retiring instead of facing voters because of his own involvement in a housing-related scandal, a sweetheart loan Countrywide gave him.)
Bank stocks went up after Obama's speech yesterday - probably because his bill institutionalizes "too big to fail." It doesn't break up the banks and it assures them access to Federal Reserve loans as needed. It makes bailouts permanent.
Despite what you may have heard, this bill can be stopped. The Goldman Sachs scandal exposes a deep flaw in the bill that I believe can generate enough public outrage to stop this bill - if we can educate people quickly.
We made a video that lays it out clearly. Please watch it now and share it with your contacts. The short version is that hedge fund billionaire John Paulson, the central figure in the Goldman fraud investigation, may have helped engineer the housing collapse that made him a fortune - with the help of a key Obama administration official and the leftwing group that designed Obama's so-called reform bill.
The Securities and Exchange Commission is investigating whether Goldman acted improperly, but there is no investigation into the leftwing Center for Responsible Lending, which facilitated both the creation of the subprime bubble and its collapse, while CRL's major donors (John Paulson, Herb and Marion Sandler, and George Soros) made a fortune.
The bill the Senate is now considering does nothing to attack the root causes of the housing bubble - Fannie Mae, Freddie Mac, and activists like the Center for Responsible Lending who forced banks to make risky loans.
It actually rewards these people.
We can win, but we need to act fast to get the word out.
Thanks for all you do,
Vice President, Policy
Americans for Prosperity
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