Brokers, Accountants Try to Buy Some Lenience

Wall Street is trying to pay the piper -- to pipe down.

Campaign donations from brokers and accounting companies are soaring, as the embattled industries try to align themselves with politicians most likely to go easy on them.

Brokers rank third among all groups for the amount of money they've donated this year -- outranked only by lawyers and retirees. Indeed, brokerages have shelled out more money in the current midterm election than in any other, according to the Center for Responsive Politics, a nonprofit organization.

"I think they're giving money with the hope that a lot of these [problems] will just go away, and they're focusing on candidates that will help that happen," said Bill Allison, managing editor at the Center for Public Integrity, a nonprofit research group.

Brokers have doled out $39.4 million, with $3.94 million coming from their political action committees and the rest from individual donors, according to the CRP. Accounting firms have given $7.8 million, with $3.36 million coming from their PACs.

This year's top contributor among brokerages -- Goldman Sachs -- has forked over $2.3 million, 71% of which went to Democrats, the CRP said. Morgan Stanley and Credit Suisse, meanwhile, have donated more than $1 million, more than 60% of which went to Republicans. Morgan and Goldman didn't return calls seeking comment. Credit Suisse said most of the money it has given has come from individuals.

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"They're playing both sides of the aisle, and give quite a bit to people that they think will carry water for them in terms of their agenda or not be too critical if they end up on the hot seat," Allison said.

Overall in the brokerage industry, 54% of the money has gone to Republicans, while 46% has gone to the Democrats, according to the CRP.

Allegiances within the accounting profession aren't as evenly split, with 72% of the money going to Republicans. Still, Sen. Chuck Schumer (D., N.Y.) is the top recipient of the money from both industries, despite the fact that he isn't up for re-election, the CRP said. Analysts said brokers are hoping to curry favor with the Democrat because he represents the state in which most of these firms are based. Schumer's office didn't return calls.

Accountants also may like Schumer because he was one of 13 senators who pressured former Securities and Exchange Commission Chairman Arthur Levitt in 2000 to abandon accounting-reform plans.