The politics of TARP money
give a little to get a lot...
Not that this would come as a shock to anyone who pays any attention whatsoever to government, but....
A study by two economists at the University of Michigan demonstrates that banks with better political connections got more bailout money from the TARP program.
Among the more interesting (though unsurprising) findings:
- Just one standard deviation in terms of political contributions equaled an increase of almost 15 million in bailout money.
- A standard deviation in spending on lobbying was associated with an increase of over 10 million.
- And (surprise) banks that had headquarters in districts represented by members of the House Financial Services Committee had a 26% better chance of getting bailout funds at all.
Like they say, it's not what you know, but who you know.