Now Here's A Surprise (Not!)

[Winstonm]

    “Our results show that political connections play an important role in a firm’s access to capital. The effects of political ties on federal capital investment are strongest for companies with weaker fundamentals, lower liquidity and poorer performance — which suggests that political ties shift capital allocation towards underperforming institutions.”

 

    -Ran Duchin and Denis Sosyura, University of Michigan School of Business

 

    “U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday.

 

    Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan’s Ross School of Business.

 

    Banks with headquarters in the district of a U.S. House of Representatives member who serves on a committee or subcommittee relating to TARP also received more funds.

 

    Political influence was most helpful for poorly performing banks, the study found.

 

    Banks with an executive who sat on the board of a Federal Reserve Bank were 31% more likely to get bailouts through TARP’s Capital Purchase Program, the study showed. Banks with ties to a finance committee member were 26% more likely to get capital purchase program funds.”

[mike777]

I am shocked....shocked

 

 

 

Where is the virtous economy?