This year, Goldman spent $800,000 in one quarter in order to lobby the federal government on Dodd-Frank reform and on other financial issues according to Bloomberg Businessweek. Lobbying can and has been able to corrupt the political and financial system; for example, the lobbying for deregulation helped create the present financial mess.
Goldman Sachs spent $800K on 3Q lobbying.
Bloomberg Businessweek in Washington
Goldman Sachs Group Inc. spent $800,000 in the third quarter to lobby the federal government on rules for implementing the Dodd-Frank Wall Street reform act and on other financial services issues, according to a disclosure report.
That's 2.5 percent more than the $780,000 the New York bank spent in third quarter of 2010, and 26 percent less than the $1.08 million it spent in the second quarter of 2011.
Goldman Sachs lobbied members of Congress, the Federal Reserve, the Securities and Exchange Commission and the Commodities Futures Trading Commission on implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, securitization and other issues related to financial industry.
Banks are spending heavily to influence the writing of rules that stem from the Dodd-Frank act, which was passed last year. Named for former Sen. Christopher Dodd and outgoing Rep. Barney Frank, the new law was written to overhaul the financial system and curb practices that were thought to be responsible for the financial crisis.
Opaque, highly complex, but lightly-regulated derivatives contribute to large profits at investment banks like Goldman Sachs, but were at the heart of the financial crisis of 2008. Wall Street traders create these securities to bet on the value and risk of loans such as home mortgages and credit cards.
The new Dodd-Frank act has written rules aimed at preventing Wall Street traders from taking too much risk. It calls for the trades to go through a central exchange and for their prices to be reported. This new law could cost the banks billions of dollars in revenue, which is why banks like Goldman are lobbying regulators writing the new rules.
Goldman is one of the largest commodities trading houses in the world and is trying to influence policy that affects that business. It lobbied the White House on energy policy.
In recent years, there have been allegations that Wall Street's speculation in the commodities markets has led to wild gyrations in prices, which has driven up food and oil prices. New rules have placed curbs on how much of one type of bet traders can make on a single commodity. Many banks oppose these rules.
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