This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Banks See Midterms as FinReg Opportunity

NEW YORK (TheStreet) -- The fight over financial reform is far from over and commercial banks have devoted $11.4 million in campaign dollars to improve their odds for the second round.

After a tense partisan battle in which several prominent Democrats came out against the banking industry, the majority of its campaign spending so far has supported Republican candidates.

President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law on July 21. Much of the remaining tussle will be between banks and their regulators, who will be writing up specific rules and implementing them within the broader legislative framework.

Still, the banking industry is also pressing for certain legislative "corrections" that would lessen the cost of harsh reform measures. Peter Garuccio, a spokesman for the American Bankers Association, predicts there will be a lot of issues on the table stemming from Dodd-Frank.

"It's a massive, massive piece of legislation," says Garuccio. "It's safe to say that there will be some legislative items that seek to address shortfalls or deficiencies - things that you don't really know about until the rule-writing process gets going. I think we'll see a lot of that."

The ABA has been the top contributor within the commercial-banking sector this election season, pledging $2.1 million in campaign funds and spending $13.6 million on lobbying from 2009 to 2010, according to the Center For Responsive Politics.

The biggest contributions from individual banks have come, perhaps unsurprisingly, from the biggest individual banks: JPMorgan Chase (JPM) at $981,188; Bank of America (BAC) at $897,995; Citigroup (C) at $848,944; and Wells Fargo (WFC) at $645,426.

TheStreet's Political Pulse

JPMorgan is the only giant bank whose contributions - both through a political action comittee (PAC) and by individuals - have skewed Democratic. Bank of America is the only one whose contributions have mainly come from its PAC.

Community bankers have also been contributing heavily to ensure their concerns are heard. Independent Community Bankers of America (ICBA), an industry trade group, has contributed $786,050 to campaigns during the 2009-2010 election season. It also spent $7.5 million on lobbying during that period of time.

"Dodd-Frank is not the end of history for financial services," says Steve Verdier, executive vice president of congressional relations for ICBA. "The financial services industry will be engaged as never before with the upcoming elections."

As a representative of thousands of small, community banks across the country, some of ICBA's legislative priorities differ from bigger groups offering bigger dollars: "Our bankers are going to get a lot more sympathetic hearing from a congressman from Iowa or Nebraska than one from New York City because we're got hundreds of banks in those rural districts," explains Verdier.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs