[lbo-talk] Where Obama's Money Comes From Fwd: Obama’s Money Cartel by Martens from Louis' list

Jerry Monaco monacojerry at gmail.com
Sat Feb 23 13:31:07 PST 2008


Even though I agree with all who have said please stop the Obamarama I forward this from Louis' list. Under the assumption that tracing where the money comes from for any candidate represents the sub rosa vote of the owning classes. There is too much heavy breathing in this article from Pat Martens but it seems to me from reading other Martens articles he specializes in creating mysteries where there are none, in order to hype the through line of an other wise interesting story. Once we heard that money was pouring in for Obama why should it surprise us that it is coming from Wall Street?

I have a question does anyone know where trial lawyer money is going to in this election? Does anyone know where the big city real estate interest money is going to?

---------- Forwarded message ---------- From: Louis Proyect <lnp3 at panix.com> Date: Sat, Feb 23, 2008 at 9:28 AM Subject: Obama's Money Cartel To: Jerry Monaco <monacojerry at gmail.com>

http://www.zcommunications.org/znet/viewArticle/16601

Obama's Money Cartel

How he's fronted for the most vicious firms on Wall Street

February 23, 2008 By Pam Martens

Wall Street, known variously as a barren wasteland for diver­sity or

the last plantation in America, has defied courts and the Equal

Employment Opportunity Commission (EEOC) for decades in its failure

to hire blacks as stockbrokers. Now it's marshal­ling its money

machine to elect a black man to the highest office in the land. Why

isn't the press curious about this?

Walk into any of the largest Wall Street brokerage firms today and

you'll see a self-portrait of upper management rac­ism and sexism:

women sitting at secre­tarial desks outside fancy offices occupied by

predominantly white males. According to the EEOC as well as the

recent racial discrimination class actions filed against UBS and

Merrill Lynch, blacks make up between 1 per cent to 3.5 per cent of

stockbrokers - and this after 30 years of litigation, settlements and

empty prom­ises to do better by the largest Wall Street firms.

The first clue to an entrenched white male bastion seeking a black

male occupant in the oval office (having placed only five blacks in

the U.S. Senate in the last two centuries) appeared this month on a

chart at the Center for Responsive Politics website. It was a list of

the 20 top con­tributors to the Barack Obama campaign, and it looked

like one of those compre­hension tests where you match up things that

go together and eliminate those that don't. Of the 20 top

contributors, I elimi­nated six that didn't compute. I was now

looking at a sight only slightly less fright­ening to democracy than

a Diebold vot­ing machine. It was a Wall Street cartel of financial

firms, their registered lobbyists, ! and go-to law firms that have a

death grip on our federal government.

Why is the "yes, we can" candidate in bed with this cartel? How can

we, the people, make change if Obama's money backers block our

ability to be heard?

Seven of the Obama campaign's top 14 donors consist of officers and

em­ployees of the same Wall Street firms charged time and again with

looting the public and newly implicated in originat­ing and/or

bundling fraudulently made mortgages. These latest frauds have left

thousands of children in some of our largest minority communities

coming home from school to see eviction notices and foreclosure signs

nailed to their front doors. Those scars will last a lifetime.

These seven Wall Street firms are (in order of money given): Goldman

Sachs, UBS AG, Lehman Brothers, JP Morgan Chase, Citigroup, Morgan

Stanley and Credit Suisse. There is also a large hedge fund, Citadel

Investment Group, which is a major source of fee income to Wall

Street. There are five large corporate law firms that are also

registered lobbyists; and one is a corporate law firm that is no

longer a registered lobbyist but does legal work for Wall Street. The

cumula­tive total of these 14 contributors through February 1, 2008,

was $2,872,128, and we're still in the primary season.

But hasn't Senator Obama repeatedly told us in ads and speeches and

debates that he wasn't taking money from reg­istered lobbyists?

Hasn't the press given him a free pass on this statement?

Barack Obama, speaking in Greenville, South Carolina, on January 22, 2008:

"Washington lobbyists haven't funded my campaign, they won't run my

White House, and they will not drown out the voices of working

Americans when I am president".

Barack Obama, in an email to support­ers on June 25, 2007, as

reported by the Boston Globe:

"Candidates typically spend a week like this – right before the

critical June 30th financial reporting deadline – on the phone, day

and night, begging Washington lobbyists and special interest PACs to

write huge checks. Not me. Our campaign has rejected the

money-for-in­fluence game and refused to accept funds from registered

federal lobbyists and po­litical action committees".

The Center for Responsive Politics' website allows one to pull up the

filings made by lobbyists registering under the Lobbying Disclosure

Act of 1995 with the clerk of the U.S. House of Representatives and

secretary of the U.S. Senate. These top five contributors to the

Obama campaign have filed as registered lobbyists: Sidley Austin LLP;

Skadden, Arps, et al; Jenner & Block; Kirkland & Ellis; Wilmerhale,

aka Wilmer Cutler Pickering.

Is it possible that Senator Obama does not know that corporate law

firms are also frequently registered lobbyists? Or is he making a

distinction that because these funds are coming from the employ­ees

of these firms, he's not really taking money directly from registered

lobby­ists? That thesis seems disingenuous when many of these

individual donors own these law firms as equity partners or

shareholders and share in the profits gen­erated from lobbying.

Far from keeping his distance from lobbyists, Senator Obama and his

cam­paign seems to be brainstorming with them.

The political publication, The Hill, re­ported on December 20, 2007,

that three salaried aides on the Obama campaign were registered

lobbyists for dozens of corporations. (The Obama campaign said they

had stopped lobbying since joining the campaign.) Bob Bauer, counsel

to the Obama campaign, is an attorney with Perkins Coie. That law

firm is also a reg­istered lobbyist.

What might account for this persistent (but non-reality based) theme

of distanc­ing the Obama campaign from lobbyists? Odds are it traces

back to one of the largest corporate lobbyist spending sprees in the

history of Washington whose details would cast an unwholesome pall on

the Obama campaign, unless our cognitive abilities are regularly

bombarded with abstract vacuities of hope and change and sentimental

homages to Dr. King and President Kennedy .

On February 10, 2005, Senator Obama voted in favor of the passage of

the Class Action Fairness Act of 2005. Senators Biden, Boxer, Byrd,

Clinton, Corzine, Durbin, Feingold, Kerry, Leahy, Reid and 16 other

Democrats voted against it. It passed the Senate 72-26 and was signed

into law on February 18, 2005.

Here is an excerpt of remarks Senator Obama made on the Senate floor

on February 14, 2005, concerning the pas­sage of this legislation:

"Every American deserves their day in court. This bill, while not

perfect, gives people that day while still providing the reasonable

reforms necessary to safe­guard against the most blatant abuses of

the system. I also hope that the federal judiciary takes seriously

their expanded role in class action litigation, and upholds their

responsibility to fairly certify class actions so that they may

protect our civil and consumer rights..".

Three days before Senator Obama ex­pressed that fateful yea vote, 14

state attorneys general, including Lisa Madigan of Senator Obama's

home state of Illinois, filed a letter with the Senate and House,

pleading to stop the passage of this cor­porate giveaway. The AGs

wrote: "State attorneys general frequently investigate and bring

actions against defendants who have caused harm to our citizens... In

some instances, such actions have been brought with the attorney

general acting as the class representative for the con­sumers of the

state. We are concerned that certain provisions of S.5 might be

misinterpreted to impede the ability of the attorneys general to

bring such ac­tions..."

The Senate also received a desper­ate plea from more than 40 civil

rights and labor organizations, including the NAACP, Lawyers

Committee for Civil Rights Under Law, Human Rights Campaign, American

Civil Liberties Union, Center for Justice and Democracy, Legal

Momentum (formerly NOW Legal Defense and Education Fund), and

Alliance for Justice. They wrote as fol­lows:

"Under the [Class Action Fairness Act of 2005], citizens are denied

the right to use their own state courts to bring class actions

against corporations that violate these state wage and hour and state

civil rights laws, even where that corporation has hundreds of

employees in that state. Moving these state law cases into federal

court will delay and likely deny justice for working men and women

and victims of discrimination. The federal courts are al­ready

overburdened. Additionally, federal courts are less likely to certify

classes or provide relief for violations of state law".

This legislation, which dramatically im­paired labor rights, consumer

rights and civil rights, involved five years of pres­sure from 100

corporations, 475 lobby­ists, tens of millions of corporate dollars

buying influence in our government, and the active participation of

the Wall Street firms now funding the Obama campaign. "The Civil

Justice Reform Group, a busi­ness alliance comprising general

counsels from Fortune 100 firms, was instrumen­tal in drafting the

class-action bill", says Public Citizen.

One of the hardest-working registered lobbyists to push this

corporate giveaway was the law firm Mayer-Brown, hired by the leading

business lobby group, the U.S. Chamber of Commerce. According to the

Center for Responsive Politics, the Chamber of Commerce spent $16

million in just 2003, lobbying the government on various business

issues, including class action reform.

According to a 2003 report from Public Citizen, Mayer-Brown's

class-action lobbyists included "Mark Gitenstein, for­mer chief

counsel to the Senate Judiciary Committee and a leading architect of

the Senate strategy in support of class-action legislation; John

Schmitz, who was deputy counsel to President George H.W. Bush; David

McIntosh, former Republican congressman from Indiana; and Jeffrey

Lewis, who was on the staffs of both Sen. John Breaux (D-La) and Rep.

Billy Tauzin (R-La)."

While not on the Center for Responsive Politics list of the top 20

contributors to the Obama presidential campaign, Mayer-Brown's

partners and employees are in rarefied company, giving a total of

$92,817 through December 31, 2007, to the Obama campaign. (The firm

is also defending Merrill Lynch in court against charges of racial

discrimination.)

Senator Obama graduated Harvard Law magna cum laude and was the first

black president of the Harvard Law Review. Given those credentials,

one assumes that he understood the ramifica­tions to the poor and

middle class in this country as he helped to gut one of the few

weapons left to seek justice against giant corporations and their

legions of giant law firms. The class-action vehicle confers upon

each citizen one of the most powerful rights in our society: the

ability to function as a private attorney general and seek redress

for wrongs inflicted on ourselves as well as for those similarly

injured that might not otherwise have a voice.

Those rights should have been strengthened, not restricted, at this

dangerous time in our nation's history. According to a comprehensive

report from the nonprofit group, United for a Fair Economy, over the

past eight years the total loss of wealth for people of color is

between $164 billion and $213 billion, for subprime loans which is

the greatest loss of wealth for people of color in mod­ern history:

"According to federal data, people of color are three times more

likely to have subprime loans: high-cost loans account for 55 per

cent of loans to blacks, but only 17 per cent of loans to whites".

If there had been equitable distribution of subprime loans, losses

for white people would be 44.5 per cent higher and losses for people

of color would be about 24 per cent lower. "This is evidence of

systemic prejudice and institutional racism."

Before the current crisis, based on improvements in median household

net worth, it would take 594 more years for blacks to achieve parity

with whites. The current crisis is likely to stretch this even further.

So, how should we react when we learn that the top contributors to

the Obama campaign are the very Wall Street firms whose shady

mortgage lenders buried the elderly and the poor and minority under

predatory loans? How should we react when we learn that on the big

donor list is Citigroup, whose former employee at CitiFinancial

testified to the Federal Trade Commission that it was standard

practice to target people based on race and educational level, with

the sales force winning bonuses called "Rocopoly Money" (like a sick

board game), after "blitz" nights of soliciting loans by phone? How

should we react when we learn that these very same firms, arm in arm

with their corporate lawyers and registered lobbyists, have weakened

our ability to fight back with the class-action vehicle?

Should there be any doubt left as to who owns our government? The

very same cast of characters making the Obama hit parade of campaign

loot are the clever creators of the industry solu­tions to the wave

of foreclosures gripping this nation's poor and middle class,

effec­tively putting the solution in the hands of the robbers. The

names of these pro­grams (that have failed to make a dent in the

problem) have the same vacuous ring: Hope Now; Project Lifeline.

Senator Obama has become the in­spiration and role model to millions

of children and young people in this coun­try. He has only two paths

now: to be a dream maker or a dream killer.

Pam Martens worked on Wall Street for 21 years; she has no securities

position, long or short, in any company mentioned in this article.

She writes on public interest issues from New Hampshire. She can be

reached at pamk741 at aol.com

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