Throw Them All Out (25 page)
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Authors: Peter Schweizer
10 Joel'S. Kahn and Francesco Formosa, "The Problem of 'Crony Capitalism': Modernity and the Encounter with the Perverse,"
Thesis Eleven,
vol. 69, May 2002.
11 Andrew Redleaf and Richard Vigilante,
Panic: The Betrayal of Capitalism by Wall Street and Washington
(Minneapolis: Richard Vigilante Books, 2010).
12 Richard H. Lester et al., "Former Government Officials as Outside Directors: The Role of Human and Social Capital,"
Academy of Management Journal,
vol. 51, no. 5, 2008.
13 Myles Mace,
Directors: Myth and Reality
(Boston: Harvard Business School Press, 1986), p. 86.
14 Lester et al., "Former Government Officials as Outside Directors."
15
Market Call,
CNNfn, December 12, 2002.
16 Eitan Goldman, Jorg Rocholl, and Jongil So, "Do Politically Connected Boards Affect Firm Value?"
Review of Financial Studies,
vol. 22, no. 6, pp. 2331â60.
17
http://www.futureofcapitalism.com/2011/02/introducing-the-crony-capitalist-index
.
18 Marisa Katz, "Family Ties,"
National Journal,
March 31, 2007.
20 Carl Hulse, "In Capitol, Last Names Link Some Leaders to Lobbyists,"
New York Times,
August 4, 2002.
Â
10. WHAT NEEDS TO BE DONE
1 Tim Golden and David Kocieniewski, "Businessman Says Torricelli Arranged Stock Deal,"
New York Times,
April 12, 2001, and Robert Ingrassia, "Old Pal Helped Torricelli; Probes Followed,"
New York Daily News,
March 20, 2001.
2 Megan J. Ballard, "The Shortsightedness of Blind Trusts,"
Kansas Law Review,
vol. 56, 2007.
3 Senator Charles Grassley and Jennifer Shaw Schmidt, "Practicing What We Preach: A Legislative History of Congressional Accountability,"
Harvard Journal on Legislation,
vol. 35, 1988.
4 Henry G. Manne,
Insider Trading and the Stock Market
(New York: Free Press, 1966), p. 171.
5 Donna Nagy, "Insider Trading, Congressional Officials, and Duties of Entrustment,"
Boston University Law Review,
vol. 91, 2011, p. 1105.
6 Bud Jerke, "Cashing In on Capitol Hill: Insider Trading and the Use of Political Intelligence for Profit,"
University of Pennsylvania Law Review,
vol. 158, no. 5.
7 Jerke, "Cashing In on Capitol Hill."
8
United States v. Mississippi Valley Generating Co.,
364 U.S. 520, 549 (1960).
9 David G. Savage, "Supreme Court Upholds Conflict-of-Interest Laws,"
Los Angeles Times,
June 14, 2011.
10 State of Florida Case No. SC 09-1910, Nineteenth Statewide Grand Jury, First Interim Report, "A Study in Public Corruption in Florida and Recommended Solutions," December 17, 2010, p. 43.
The adventure that became this book started a couple of years ago when I first became enthralled with a simple but puzzling question: how is it that politicians enter office with relatively modest means and leave rich? Although I am responsible for the content of this book, I am thankful to the many colleagues and friends who offered guidance, assistance, and help along the way.
Let me say thanks to my good friend Stephen K. Bannon, who not only engaged intellectually with this project, but also challenged me to push further in explaining the deeper and broader problems of crony capitalism. Marc Thiessen, a good friend and partner in Oval Office Writers, offered helpful advice and moral support. Thanks is also due to Eric Singer of the Congressional Effect Fund in New York, who helped me refine my views and research concerning the interplay between congressional actions and American finance. Wynton Hall, as always, provided solid advice and sound input. I also greatly benefited from friends and colleagues who offered thoughts and comments, including Andrew Breitbart, Larry Solov, Brian Baugus, Amy Ridenour, and Ron Robinson.
Bernadette and Owen Smith have been great friends and supporters going back more than a decade. I'm very thankful for their encouragement of this project, and I'm glad we are back in regular contact. I'm honored to be the William J. Casey Fellow at the Hoover Institution, and very grateful for it.
At the Hoover Institution, I appreciate the support and friendship of John Raisian, and of my colleagues, whom I see all too rarely. Bruce Nichols, my publisher, took a chance on this project, and I'm grateful that he saw the vision even more clearly than I did at the beginning. He not only kept me on schedule and corrected my errors, he offered tremendous advice on how to make the manuscript better. Bruce, it's an honor to work with you. My agents, Glen Hartley and Lynn Chu, are simply the best in the business. Period.
A project like this is, by its nature, a team effort. I was blessed to have the assistance of the following individuals who helped me enormously: Rhonda Adair for her editorial and intellectual input in shaping and completing the project; Tori Brooks for her research assistance; Seamus Bruner for his research work; Josh Eller for his research, input, and advice; David Healy Jr. for his research work and fact-checking; Tim Ward for his research work and fact-checking; Rick White, who provided expert advice and wisdom and consulted on this project in almost every aspectâconception, research, and writing; and Casey Wood, who provided research assistance and fact-checking support.
A special thanks goes to my assistant, Sally Jo Roorda, who put up with a horribly disorganized and messy office, a crowded schedule, and a neurotic boss, but still held everything together and did so with a smile.
Mom, you are the best. Maria, to whom this book is dedicated, your "little brother" appreciates you much more than he lets on. That needs to change.
My familyâincluding my wife, Rochelle, and our children, Jack and Hannah (a.k.a. Sweet Pea)âhas put up with a distracted man wandering around the house looking for books or documents for far too long. Thanks for being so patient ... yet again.
Abbott Labs: Congress members trade in stock,
[>]
,
[>]
Abound Solar: receives federal grants,
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Ackerman, Gary: buys IPOs,
[>]
â
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Act Networks: Congress members buy IPO,
[>]
Advanced Technology Vehicles Manufacturing Program,
[>]
â
[>]
AIG: government bails out,
[>]
â
[>]
Albright, Madeleine,
[>]
Alito, Samuel,
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Allegheny Energy: receives federal grants,
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Soros invests in,
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Alliance for Climate Protection,
[>]
AltaRock: receives federal grants,
[>]
alternative energy: under Bush,
[>]
Obama and,
[>]
Ameren: Soros invests in,
[>]
â
[>]
American Electric Power: Soros invests in,
[>]
American Express: and PPIP,
[>]
American Recovery and Reinvestment Act,
[>]
insider information and,
[>]
Amgen: congressmen trade in stock,
[>]
â
[>]
,
[>]
Amirys Biotechnologies: congressmen trade in stock,
[>]
Angeleno Group,
[>]
Apollo Group: stock price declines,
[>]
Apple: congressmen trade options in,
[>]
Audacity of Hope, The
(Obama),
[>]
Avanex: congressmen buy IPO,
[>]
Avant Immunotherapeutics: congressmen trade in stock,
[>]
Avenue A: congressmen buy IPO,
[>]
Bachus, Spencer: role in legislative decision-making,
[>]
,
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â
[>]
,
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,
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trades stocks & options in economic crisis of 2008,
[>]
â
[>]
Bain Capital,
[>]
Bainbridge, Stephen: on conflict of interest,
[>]
Baird, Bryan: on kickbacks,
[>]
Ballard, Megan: on blind trusts,
[>]
â
[>]
Bank of America: congressmen trade in,
[>]
banking industry: and PPIP,
[>]
â
[>]
Barton, Joe: supports credit card fee reform,
[>]
â
[>]
Basin Electric Power Cooperative: receives federal grant,
[>]
Baucus, Max: and health care reform,
[>]
Beech Ridge Energy Wind Farm,
[>]
â
[>]
Berkshire Hathway,
[>]
â
[>]
,
[>]
and
TARP,
[>]
Bernanke, Ben: and economic crisis of 2008,
[>]
,
[>]
,
[>]
,
[>]
Big Short, The
(Lewis),
[>]
Bingaman, Jeff: buys IPOs,
[>]
invests in Goldman Sachs,
[>]
BioFuel Energy: Soros invests in,
[>]
biotechnology industry: congressmen trade in stock,
[>]
â
[>]
Gayle on,
[>]
Blackboard,
[>]
Blackstone Group: lobbying by,
[>]
blind trusts: Ballard on,
[>]
â
[>]
Johnson's use of,
[>]
"blue law" movement,
[>]
Boehner, John: invests in Goldman Sachs,
[>]
trades in health care industry stocks,
[>]
Boeing Corporation: and Export-Import Bank,
[>]
â
[>]
Boxer, Barbara: buys IPOs,
[>]
Bradley, Jeb: trades in pharmaceutical industry stocks,
[>]
Bridge Health International: congressmen trade in stock,
[>]
â
[>]
Brightsource: receives federal loan guarantees,
[>]
,
[>]
Brin, Sergei: as Obama supporter,
[>]
Bristol-Myers Squibb: congressmen trade in stock,
[>]
British Petroleum: as Obama supporter,
[>]
receives federal grant,
[>]
Brokaw, Tom,
[>]
Brown, Kirk,
[>]
Brown, Mark Malloch: and political intelligence,
[>]
â
[>]
Brown, Scott,
[>]
Browner, Carol: and climate change,
[>]
â
[>]
Buchanan, Vern: invests in Goldman Sachs,
[>]
trades in health care industry stocks,
[>]
Buffett, Warren,
[>]
Lampe on,
[>]
proposes Public-Private Investment Program (PPIP),
[>]
â
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,
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Rattner on,
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Stoll on,
[>]
Summers on,
[>]