Elizabeth Warren: Big Banks Should Reveal Their Donations to Influential Think Tanks

James Berglie/ZUMAPress

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


On Wednesday, Sen. Elizabeth Warren (D-Mass.) called on the biggest US banks to disclose their donations to think tanks, which influence laws that affect them.

Under current law, banks and other corporations are not required to publicly report their contributions to think tanks. That means that lawmakers who use think tank data and analysis to shape laws and regulations designed to police banks do not know how much bank money influences that research. “A lot of the power of big banks over DC comes from donations to think tanks, who then put out ‘studies’ favorable to certain ways of doing business,” says one Democratic aide. In a letter to the CEOs of the nation’s six largest financial institutions—JPMorgan Chase, Wells Fargo, Bank of America, Goldman Sachs, Citigroup, and Morgan Stanley—Warren called on the companies to start voluntarily reporting their donations to these policy shops.

“To prevent future [economic] crises,” Warren says in the letter, “policymakers need access to objective, high-quality research, data, and analysis about our consumer and financial markets…[P]rivate think tanks are extremely well-suited to provide this research and analysis, but for it to be valuable, such research and analysis must be truly independent.”

Corporations are required to tell the public when they lobby members of Congress or government agencies, Warren says, so “the same transparency should exist for any indirect efforts [banks] make to influence policymaking through financial contributions to think tanks.”

Warren’s demand for think tank money transparency is yet another approach to curbing too-big-to-fail—the problem of the biggest Wall Street banks being so large and loosely regulated that their failure would endanger the entire financial system. One of the reasons too-big-to-fail is still a problem, five years after the financial crisis, is that banks are good at weakening the laws and regulations meant to rein them in.

One way to do that is through think tanks. The Roosevelt Institute, for example, recently published a report on the successes and failures of the 2010 Dodd-Frank financial reform act. If the institute had received loads of Wall Street cash, it might have been motivated to minimize the failures of the law, and thus further regulation.

Warren’s letter comes a few days after the president and vice president of the centrist think tank Third Way wrote a Wall Street Journal op-ed warning Democrats against following Warren over a “populist cliff.”  The Nation reported this week that Third Way employs a Washington consulting firm that represents financial institutions including MasterCard and Deutsche Bank.

The letter also comes on the heels of a recent defeat for corporate contribution transparency advocates. The Securities and Exchange Commission, a Wall Street regulator, considered forcing corporations to disclose the money they spend on campaigns and elections. But just this week, the agency announced it had dropped that issue from its 2014 priority list.

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. It's our first time asking for an outpouring of support since screams of FAKE NEWS and so much of what Trump stood for made everything we do so visceral. Like most newsrooms, we face incredibly hard budget realities, and it's unnerving needing to raise big money when traffic is down.

So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate