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Automobile industry

Bailout Recipients Spend Millions on Lobbying, Despite Heavy Government Aid

Strategic Insights

— 1 min read

The top 10 recipients of the $700 billion US financial bailout have spent a significant amount of money on federal lobbying, with General Motors Corp. leading the pack. The automaker, which has received $13.4 billion in government loans, spent $2.8 million on lobbying during the first quarter of 2009. Other major recipients of bailout money, such as American International Group Inc., Citigroup Inc., and JPMorgan Chase & Co., have also reported significant lobbying expenditures.

Key Takeaways:

  • General Motors Corp. spent $2.8 million on federal lobbying during the first quarter of 2009, despite receiving $13.4 billion in government loans.
  • American International Group Inc., which has received $40 billion from the bailout fund, spent over $1 million on lobbying.
  • Citigroup Inc., which has received $50 billion from the bailout fund, also spent over $1 million on lobbying.
  • JPMorgan Chase & Co., which has received $25 billion from the bailout fund, spent over $1 million on lobbying.
  • Bank of America Corp., which received $45 billion in bailout money, spent $660,000 on lobbying.
  • Wells Fargo & Company, which received $25 billion in bailout money, spent $700,000 on lobbying.
  • Goldman Sachs, which received $10 billion in bailout money, spent $670,000 on lobbying.
  • Morgan Stanley, which received $10 billion in bailout money, spent $540,000 on lobbying.
  • The total lobbying expenditure of the top 10 bailout recipients was approximately $9.5 million during the first three months of 2009.

Statistics:

  • The top 10 recipients of the $700 billion US financial bailout spent a total of $9.5 million on federal lobbying during the first three months of 2009.
  • Average lobbying expenditure per recipient: $950,000 (rounded to the nearest $100,000).
  • Total bailout money received by the top 10 recipients: $153.9 billion.
  • Total government loans and bailout money received by General Motors Corp.: $18.4 billion.

Sources:

  • "Bailed-out firms spent millions on lobbying" by The Washington Post (no date specified)
  • Report from the US government on the Troubled Assets Relief Program (no date specified)
  • Congressional reports on bailout spending (no date specified)

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