Kirk Hangs On Tight to Goldman Money

Press Release

With the United States Senate poised to take up comprehensive Wall Street reform tomorrow, Illinois Treasurer and U.S. Senate nominee Alexi Giannoulias today lambasted Republican Congressman Mark Kirk for his too-cozy relationship with the Wall Street banks that brought on the financial crisis and are standing in the way of President Obama's bipartisan reform. Giannoulias again challenged Kirk to make good on his pledge to return the all of the campaign cash he has received from Goldman Sachs over the years, which according to Federal Election Commission filings is $56,410.

"To understand Mark Kirk's record, all you have to do is look at who funds his campaigns," Giannoulias said. "Time after time, Congressman Kirk takes Wall Street money, and every time, he votes their way. Voters deserve to hear Kirk's explanation as to why contributions from Goldman, the Wall Street firm that was complicit in destroying the economy - and laughing about it - are his to keep."

There is no greater example of Kirk's too-cozy relationship with Wall Street than his relationship with Goldman Sachs, the Wall Street titan charged last week with fraud by the Securities and Exchange Commission. Yesterday, the New York Times reported that internal emails among Goldman executives make clear that the firm's brass knew full well they were making "serious money" as the housing market collapsed around them by taking the short position - in essence betting against their own investment vehicles. While the housing market collapsed, nearly taking with it the world's economy, Goldman executives laughed at the notion of ripping off "widows and orphans."

"These emails make clear that for Goldman Sachs, making money hand over fist is all that matters, even at the expense of ruining the economy and causing havoc for the rest of us," Giannoulias said. "What's also clear is that the policies and lax regulation that enabled Goldman Sachs and Wall Street firms to take down our economy are tied directly to Mark Kirk's record in Congress. It's not a coincidence that Mark Kirk counts Goldman as one of his top campaign contributors. After all, this is a Congressman so out-of-touch with what families are going through that he actually said, after six straight months of job losses, that unemployment wasn't a big issue."

Last week, the Giannoulias campaign called on Kirk to return all campaign contributions from Goldman Sachs employees. In a carefully worded statement, Kirk pledged that he would return contributions from his Senate campaign, but stopped short of promising to return the entire amount. Since the beginning of the 2010 campaign cycle, Kirk has taken in $24,000 from Goldman employees, according to FEC filings. Giannoulias today renewed his call for Kirk to return the entire $56,410.

Giannoulias does not accept campaign contributions from corporate political action committees (PACs) or federal lobbyists, becoming the first Senate candidate in Illinois history to make this pledge. In addition to the $56,410 from Goldman Sachs, Kirk has taken $1.26 million in contributions from the securities and investment sector over the course of his career, and overall has taken in $2.8 million from corporate PACs and federal lobbyists.

"Let's be very clear about one thing: Congressman Kirk wants to drag our country back to the failed Bush economics that have hurt Illinois families, while I want to fight for commonsense policies that will move our country forward, rebuild our middle class, and create new jobs right here in Illinois," Giannoulias said. "That is what's at stake in this race."

Senate debate on Wall Street reform begins tomorrow, and there are indications that a comprehensive, bipartisan bill is in the works. Giannoulias has said he supports the President's call for reform, emphasizing his wish that any legislation protects consumers against abuses in mortgages and other loans; establishes a council of regulators to watch for risks to the financial system; brings derivatives onto an open market; and, prevents another taxpayer-funded bailout of Wall Street firms and excessive CEO bonuses. To date, Congressman Kirk has opposed any meaningful Wall Street reform, including five separate votes that would have reined in excessive CEO compensation.

MARK KIRK: PUTTING HIS WALL STREET FRIENDS FIRST

* Kirk voted for a the TARP bailout, which used $700 billion in taxpayer funds to bail out large Wall Street firms. [HR1424, Vote 681, 10/03/08]
* Kirk voted against placing new strict requirements on banks and other financial institutions that accepted bailouts. The measure required recipients of taxpayer money to show that they are using the money to increase lending to consumers and small businesses and barred them from paying bonuses to their top executives until all of the money is repaid. The bill passed 260-166. [HR384, Vote 26, 1/21/09]
* Kirk voted against a bill to bar recipients of the taxpayer bailout from paying any compensation that is "unreasonable or excessive." The bill passed 247-171. [CQ Today, 4/01/09; HR1664, Vote 182, 4/01/09]
* Kirk voted against the Corporate and Financial Institution Compensation Fairness Act, which gives shareholders a say on the pay of corporate executives. The measure also required a separate non-binding shareholder vote on "golden parachute" packages for executives who leave a company in the event of a merger or acquisition. It also required the Securities and Exchange Commission to issue independence standards for compensating consultants who advise a corporation's board of directors on executive pay. The bill passed 237-185. [HR3269, Vote 686, 7/31/09]
* Kirk voted against the American Recovery and Reinvestment Act of 2009, which included a provision to limit the executive pay of firms receiving TARP bailout money. [HR1, Vote 70, 2/13/09]
* Kirk voted against the Wall Street Reform and Consumer Protection Act, which would tighten federal regulation of Wall Street and banks. Specifically, the bill would create an agency to protect consumers from abusive lending practices, set rules for the trading of some of the sophisticated financial instruments that fueled the crisis, and reduce the threat that the failure of one or two huge banks or investment firms could topple the entire economy. The bill passed 223-202. [HR 4173,Vote 968, 12/11/09]

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