Senators held stock in bailed-out banks

Senators who oversee the $700 billion Wall Street rescue package held stocks in many of the banks bailed out towards the end of last year, according to financial disclosure reports released Friday.

According to the reports detailing senators’ finances in 2008, nearly half of the members of the Senate Banking Committee had holdings in financial institutions that have taken funds from the Troubled Asset Relief Program (TARP). The panel has jurisdiction over the bailout fund and other relief efforts directed by federal regulators to save the nation’s financial system.

ADVERTISEMENT
For example, Sen. Tim JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting MORE (D-S.D.), a Banking panel member, has assets in several banks that have taken bailout funds. Along with Goldman Sachs, the senator has several assets in Bank of America funds, worth at least $115,00. Bank of America has received $45 billion in government funds.

Another Democrat invested in bailed-out institutions is Sen. Chuck SchumerCharles SchumerDean: Schumer's endorsement 'kiss of death' for Ellison How the candidates for DNC chair stack up ahead of Saturday's vote DNC candidate Harrison drops out, backs Perez for chairman MORE (N.Y.). Schumer has assets valued between $15,001 and $50,000 in Morgan Stanley and $1,001 to $15,000 in Citibank, according to his financial disclosure report. Morgan Stanley received $10 billion in TARP money while Citigroup was given $25 billion from the program. Schumer's assets in the two banks were savings accounts, however, not stock.

Sen. Herb Kohl (D-Wis.), another Banking Committee member, also invested in some of the banks that received federal money. In a separate trust that the senator does not oversee, Kohl had assets valued between $15,001 and $50,000 and another valued from $1,001 to $15,001 in JP MorganChase funds, which received $25 billion in bailout money.

Few Republicans on the committee have significant holdings in companies that have received federal bailout money.

Sen. David VitterDavid VitterMercury brings on former Sen. Vitter, two others Lobbying World Bottom Line MORE (R-La.) holds stock valued at between $1,001 and $15,000 in Goldman Sachs, Bank of America and JP MorganChase. He sold stock in Citigroup in March, after the stock had experienced significant losses from highs a year before, and in Wells Fargo in April, when it was below, but near, recent highs.

Sen. Kay Bailey Hutchison (R-Texas) still owns small amounts of stock in Regions Bank, based in Alabama, and Zions Bancorporation, a Salt Lake City company. Both have received TARP money, according to a Treasury Department report.

Sen. Mel Martinez (R-Fla.) sold three-dozen investments he had in various mutual funds and individual retirement accounts run by Morgan Stanley, though he does not have money invested directly in firms that were bailed out.

The remainder of the Banking Committee Republicans did not report holdings in TARP recipient companies.

It is likely that Sen. Bob CorkerBob CorkerA guide to the committees: Senate Republicans play clean up on Trump's foreign policy GOP Congress unnerved by Trump bumps MORE (R-Tenn.) has significant holdings in many companies that have received government aid. According to his 2008 personal financial disclosure, Corker, a wealthy businessman with a wide-ranging portfolio, had interests in more than a dozen bailed-out companies.

Corker filed for an extension, as he did in 2008, and does not have to turn in his report until August 13. Sen. Bob Bennett (R-Utah) also filed for an extension until August.

Like Corker and Bennett, three Democrats sitting on the panel asked for extensions in filing their financial disclosure reports. Freshmen Sens. Mark WarnerMark WarnerDems worry too much about upsetting others. That needs to stop. Washington-area lawmakers request GAO report on DC Metro Trump's pick for intel chief to get hearing next week MORE (D-Va.) and Jeff MerkleyJeff MerkleyPoll: Senate should confirm Gorsuch A guide to the committees: Senate Senate advances Trump's Commerce pick MORE (D-Ore.) along with the committee’s chairman, Christopher Dodd (D-Conn.), are expected to file their reports in August.

-- This story was updated at 8:55 p.m.