For all of you out there that did not realize that the politicians can keep what they don't spend of your donations! Aivars Lode
November 29, 2011, 12:18 pmLegal/Regulatory
What Happens to Wall St. Donations to Barney Frank?
By BEN PROTESSWall Street went long on Barney Frank’s Congressional career, donating more cash to his upcoming campaign than any other industry.
Now that he has announced on Monday that he would not seek re-election next year after a 16-term tenure, bankers are positioned to receive a refund on their investment. All they have to do is ask, Mr. Frank says.
“Once I have paid out remaining expenses and wound down the campaign, I will refund contributions to anyone who requests it, in a proportionate amount to what is left,” he said in a letter to donors. “Obviously, I did have legitimate campaign expenses up until now, and there will be some expenses in winding things down.”
While Mr. Frank need not return funds earmarked for the Democratic primary election, it is common for lawmakers to offer donors a chance to cash out. Federal election law does require candidates like Mr. Frank who drop out to reimburse donors like Eugene Zagat, head of the restaurant review guide, who contributed to the 2012 general election.
If there is money remaining after redemptions, Mr. Frank said he would transfer the donations “to other candidates who share my perspective.”
Wall Street may appear an unlikely benefactor of Mr. Frank, who led the charge to crack down on financial industry risk-taking after the 2008 crisis. He co-authored the Dodd-Frank law, which overhauled the Wall Street regulatory landscape.
Yet Wall Street executives respected Mr. Frank’s command of arcane areas of finance, and they were eager financiers of his campaigns.
In his last campaign, which raised roughly $4 million, Mr. Frank received more than $350,000 from securities and investment firms, making them his biggest donors collectively, according to the Center for Responsive Politics.
This year, he has raised $55,000 from the industry, again leading the way. His second-largest donor for the upcoming election was Goldman Sachs. The firm and its employees have donated $9,000.
In June, the Securities Industry and Financial Markets Association, one of Wall Street’s most vocal advocates against the Dodd-Frank law, hosted a fund-raiser for Mr. Frank. JPMorgan Chase, Goldman Sachs and Morgan Stanley all dispatched officials to the event.
Wall Street was quick to heap praise on Mr. Frank after he announced his decision to retire. Frank Keating, the chief executive of the American Bankers Association, called Mr. Frank a “storied lawmaker.”
“He is a very tough adversary because he’s bright and relentless,” Mr. Keating said, “but he’s open-minded to the facts.”
Now that he has announced on Monday that he would not seek re-election next year after a 16-term tenure, bankers are positioned to receive a refund on their investment. All they have to do is ask, Mr. Frank says.
“Once I have paid out remaining expenses and wound down the campaign, I will refund contributions to anyone who requests it, in a proportionate amount to what is left,” he said in a letter to donors. “Obviously, I did have legitimate campaign expenses up until now, and there will be some expenses in winding things down.”
While Mr. Frank need not return funds earmarked for the Democratic primary election, it is common for lawmakers to offer donors a chance to cash out. Federal election law does require candidates like Mr. Frank who drop out to reimburse donors like Eugene Zagat, head of the restaurant review guide, who contributed to the 2012 general election.
If there is money remaining after redemptions, Mr. Frank said he would transfer the donations “to other candidates who share my perspective.”
Wall Street may appear an unlikely benefactor of Mr. Frank, who led the charge to crack down on financial industry risk-taking after the 2008 crisis. He co-authored the Dodd-Frank law, which overhauled the Wall Street regulatory landscape.
Yet Wall Street executives respected Mr. Frank’s command of arcane areas of finance, and they were eager financiers of his campaigns.
In his last campaign, which raised roughly $4 million, Mr. Frank received more than $350,000 from securities and investment firms, making them his biggest donors collectively, according to the Center for Responsive Politics.
This year, he has raised $55,000 from the industry, again leading the way. His second-largest donor for the upcoming election was Goldman Sachs. The firm and its employees have donated $9,000.
In June, the Securities Industry and Financial Markets Association, one of Wall Street’s most vocal advocates against the Dodd-Frank law, hosted a fund-raiser for Mr. Frank. JPMorgan Chase, Goldman Sachs and Morgan Stanley all dispatched officials to the event.
Wall Street was quick to heap praise on Mr. Frank after he announced his decision to retire. Frank Keating, the chief executive of the American Bankers Association, called Mr. Frank a “storied lawmaker.”
“He is a very tough adversary because he’s bright and relentless,” Mr. Keating said, “but he’s open-minded to the facts.”
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