Most Ethical Congress EVAH! Study Shows Bailout Tied To Equity Ownership by Members Of House…

Ethics?!?! We don’t need no stinkin ethics…

Equity Ownership and Campaign Financing of Members of Congress and the Bailout of the Financial Sector

Ahmed Tahoun University of Manchester – Manchester Business School Laurence Van Lent Tilburg University – Department of Accounting March 1, 2010

Abstract:
We examine whether the equity ownership in financial institutions held by members of the U.S. Congress is associated with these institutions receiving government support under the Troubled Asset Relief Program (TARP). We find that the equity ownership of members of the House of Representatives, but not the Senate, is positively associated with voting in favor of key legislative proposals to bailout the financial sector. In a sample of 555 publicly listed financial institutions, we also find that the equity ownership of Congress members seated on the Senate Finance, the House Financial Services and the Senate Banking, Housing and Urban Affairs committees is positively associated with both the amount of bailout these institutions receive, as well as the timing of that bailout. We find that when the chairpersons and ranking members of these committees hold larger investments in a given financial institution, the amount of support committed thereto as well as their likeliness of receiving this support at an earlier time increases. In contrast, institutions’ campaign donations to the members, including the chairpersons and ranking members, of these committees are not associated with either the amount of bailout received or the timing of its receipt; rather, we find that the bailout is positively associated with the total donations made to all non-financial-committee members. In addition, we find a positive association between government support and the presence of a (former) politician on an institution’s board of directors. SSRN-Equity Ownership and Campaign Financing of Members of Congress and the Bailout of the Financial Sector by Ahmed Tahoun, Laurence Van Lent

Fairly certain this is a bad thing but hey I am an old fashioned sort of guy. I believe that one tells the truth, works for your money, and that ultimately part of the real fun of life is not the destination, money, but how you get there. It means a lot to us that we actually earn our money and we wouldn’t dream of coming by it dishonestly. That would steal the fun away from earning it. From proving to ourselves that others value our labor. That is the value of money. Being given money means that folks feel sorry for us which means we are pitiful. Stealing money means we don’t think we can earn it which is corrupt. Our congress critters are both pitiful and corrupt.

One is struck by the sheer brazen corruption that passes for governance these days. If these bastards are not simply standing there robbing us blind while giving our concerns the finger then I am the fairy godmother and last I checked I have no wings. Remember that is YOUR money, correction lets be much more precise, your labor, that these flim flam clowns are brazenly taxing away from you to give to THEMSELVES! What is it that King George did to the colonists that is worse than that?

That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

Those congress critters are playing with fire in the powder house.

Hat tip Market Ticker Karl Denninger

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