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Failed firms gave big to both parties

Both McCain and Obama, industry critics, got donations

By Jim McElhatton and Jennifer Haberkorn | Friday, September 19, 2008

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Before the government committed billions of taxpayer dollars to rescue troubled corporate giants, executives at those firms were directing millions of dollars in lobbying efforts and campaign donations to the very politicians who now blame Wall Street's excesses and greed for America's financial crisis.

The corporate largesse flowed to members of Congress, the political parties, the nominating conventions and the two presidential candidates through the summer, even as many of the companies and their executives were teetering toward collapse.

An analysis by The Washington Times found that both parties cashed in heartily, with Democrats slightly more likely to benefit.

For instance, executives of four companies bailed out by the government — American International Group, Fannie Mae, Freddie Mac and Bear Stearns — donated nearly $2 million to politicians, political action committees and political parties since last year, including nearly $369,000 to the major presidential candidates, according to Federal Election Commission data analyzed by the nonpartisan Center for Responsive Politics (CPR).

They also spent more than $7 million on lobbyists, Senate records show.

Democratic Sen. Barack Obama received $226,611 from employees of the failed companies, compared with $142,575 to Republican Sen. John McCain, the campaign reports showed.

Campaign watchdogs said for years that such donations were made by company executives eager to keep government regulation out of their business and that Americans must now be left wondering whether the largesse influenced the decision to rescue the companies when they failed.

"For years, they were giving money to get Washington out of their business, and now they're very interested in getting Washington involved," said Massie Ritch of CPR.

Meanwhile, both campaigns sought to blame the other for the deepening financial crisis.

"Unlike John McCain, who has raised $239,900 from PACs in the financial services and insurance industry, Barack Obama hasn't accepted a dime from PACs or Washington lobbyists during this campaign," said Obama spokesman Ben LaBolt.