Commercial PropertyFair Choice vs. Community Choice: Where Do Bill Backers Get Their PAC Money?
Two opposing bills are before Congress. One supports banks in real estate and the other doesn"t, which begs the question -- what kind of PAC money supports the major backers?
Political Action Committees (PACs) are formed by corporations, labor unions, or associations to raise money for political activity, according to the popular online encyclopedia Bartleby.com. "Funds can be gathered by voluntary contributions from members, employees, or shareholders."
PAC contributions are subject to guidelines, because of their special-interest nature, and are limited to contributing up to $5,000 a candidate for each campaign which can be multiplied across primaries, run-offs and general elections. The fear many have about PACs is that legislators "may accede to pressure from these groups and become less responsive to their constituents."
This is a real fear considering that the backers of the "Fair Choice And Competition In Real Estate Act" sit on the Financial Services Committee which oversees banking activities.
Chairman Rep. Michael Oxley, R-Ohio, and ranking member, Rep. Barney Frank (D-Mass.) have introduced the bill. Since introducing the bill in May, 2005, the FSC members have been unable to raise other support.
But are they all alone in their belief that banks should be in real estate? Let"s take a look at their PAC contributions for 2005-2006.
With nearly 10 percent of his PAC contributions coming from commercial banks, including such establishments as Citigroup, Inc, one has to wonder when push comes to shove ... who is doing the pushing?
Perhaps this is coincidental and the pure of heart really are the pure of contribution.
But then there is Representative Frank"s PAC record. Fifteen percent of his PAC contributors were from the commercial bank sector.
Opposing the banks in real estate bill is the "Community Choice in Real Estate Act," which would specifically ban banks from real estate. Backers of this bill include Senator Hillary Clinton (D-NY) and Rep. Ken Calvert (R-CA), and is supported by over half the House of Representatives.
Senator Clinton received around two percent of her contributions from the real estate sector and neither Calvert nor Clinton received any PAC contributions from commercial banks.
So the score in this game: Oxley and Frank are supported by a combined 25 percent commercial bank contributions. Zero percent of banks are supporting Clinton and Calvert.
Will Oxley and Frank be able to prevail? The House Financial Services Committee is in a powerful position. They "sit at the top of the panel through which one bill or the other must travel." says syndicated political columnist Lew Sichelman.