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 [6] 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.
(h/t Heritage [7])
