Wednesday, May 26, 2010

Schumer's Squeeze

Timothy Carney has the story of how Senator Chuck Schumer operates to bring in the big bucks.
Three years ago, Sen. Chuck Schumer, D-N.Y., leaned on hedge funds to lobby more. The funds soon hired his banking staffer as a lobbyist. She began raising money for Schumer. Now he's championing financial regulation that would benefit these hedge funds. "Racket" might be the right word here.
Read the rest of the story for the details. It's all quite cozy. Schumer has a sweet thing going.

And remember. Chuck Schumer is set to be the top choice to replace Harry Reid as the lead Democrat in the Senate. With Harry Reid set for a shellacking in the upcoming election, Dick Durbin of Illinois and Schumer are the top competitors to replace him.
There is a sense within the White House that Durbin would be easier to work with, that Schumer would pose a problem on issues that could get him press back home, and that his Brooklyn bearing doesn't exactly play between the coasts. Still, one senior administration official offered a separate assessment that the members of the Senate would opt for the independence ensured by having Schumer at the helm.

"Chuck Schumer is the next majority leader," the senior administration official predicted. "He just works it."
Just think of the racket he could run if he were majority leader.


Rick Caird said...

When this happened three years ago, it was obvious corruption. This is how Schumer and many politicians operate. They pick a target, make some noise about regulation and penalties, force the target to lobby and contribute, and then the politician becomes their champion. Schumer did it with the hedge funds and created donations to the senatorial fund by threatening tax legislation that would specifically affect the hedge funds.

The politicians also did a similar thing with Microsoft. For years, MSFT was apolitical and did not have lobbyists. The politicians decided they were not getting their homage and contributions from Microsoft and, lo and behold, there is a move to attack Microsoft for anti trust. Microsoft starts lobbying and contributing and the noise goes away.

No matter what your complaints about Wall Street, the most corrupt organization in the US is the Federal government.

LarryD said...

The Microsoft prosecution was legit. Even a stopped clock is right twice a day.

Mark Twain was right when he referred to Congress as Americas only native criminal class.

tfhr said...


Check out PJ O'Rourke's Parliament of Whores, for an update on Twain's assessment.