Meet Obama’s Corporate Backers

With this year’s election cycle expected to be the most expensive yet, corporations are eager to fill the coffers of candidates to give their agenda an ear on capitol hill. And with Obama’s campaign gathering momentum, many of America’s largest companies have doled out money to the Democratic Presidential candidate’s campaign. While many of these corporations have also contributed to Obama’s opponent, Republican John McCain, often the sums pale in comparison to what has been given to the Senator from Chicago. We take a look at some of Obama’s most prominent patrons and what they’ll likely want in return during this next election cycle.

Donor: Goldman Sachs & Co.

How Much: $627,730

What They’ll Want: Goldman Sachs is one of Wall Street’s most prestigious investment banks. Like others in the securities industry, it advises and invests in nearly every industry affected by federal legislation. The firm closely monitors issues including economic policy, trade and nearly all legislation that governs the financial sector. The firm has been a large proponent of privatizing Social Security, a move that would likely make billions of dollars available for private investment, one of Goldman’s special forte. However, with potentially a Democratic Congress and President, Goldman will likely shift gears. Look for the powerhouse investment bank to continue pushing forward on legislation that would essentially further deregulate the investment banking/securities industry. This includes a hands-off approach for any legislation barring speculative bets made on oil and other commodity prices, an activity some blame for higher oil prices. The firm will also likely tap executive privilege to continue its aggressive expansion into China’s sensitive financial sector which will invariably require acquiescence from Chinese leaders. More than any other Wall Street firm, Goldman features a revolving door between New York and DC (Governor and Senator Corzine, countless Treasury Secretaries including the current, Henry Paulson) so don’t be surprised if many are donating to secure Obama Cabinet posts.

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Donor: JP Morgan

How Much: $398,021

What They’ll Want: One of the nation’s leading financial services firms, JP Morgan offers commercial and consumer banking, credit services, securities brokering, and financial consulting. Also its subsidiary, Chase Bank, is one of the top consumer credit card issuers in the country. It’s no surprise that the firm lobbies heavily on legislation that affects the nation’s financial industry, including bankruptcy reform and banking deregulation. The New York based firm will likely ask or pressure Obama to ease any moves to raise capital gains taxes (the tax wealthy individuals as well as ordinary investors pay when making a gain on an assets), as many of JP Morgan’s wealth private banking clients would be hurt by such a move.

Donor: Citigroup

How Much: $393,899

What They’ll Want: Citigroup is the world’s second largest financial services firm with $1 trillion in assets. Aside from its large bank accounts, the global giant has been one of Washington’s most succesful lobbyists. In 1998, Citigroup’s lobbying helped repeal a federal law that prevented banks from getting into other businesses, allowing the company to acquire an insurance firm and beef up its stake in investment banking. The bank will likely lobby Obama on a number of issues, including financial privacy, bankruptcy reform and terrorism reinsurance.

Donor: UBS AG

How Much: $378,400

What They’ll Want: While UBS’s home offices are in Switzerland, American employees of this Swiss bank are allowed to donate on behalf of the organization. And donate they do. Being the self-proclaimed world’s largest manager of private wealth assets, or, “the world’s biggest manager of other people’s money,” UBS has much at stake in this next election cycle. Any raise in the capital gains tax will hurt UBS as money normally deposited into private accounts will shift to the government in the form of tax revenues. In addition, on July 17, 2008 the US Senate disclosed that the U.S. loses around $100 billion annually due to offshore tax evasion. The Senate report accused Swiss bank UBS AG for allegedly marketing tax-evasion strategies to wealthy Americans. U.S. clients hold about 19,000 accounts at UBS, with an estimated $18 billion to $20 billion in assets, in Switzerland, according to the findings from the Senate probe and Justice Department prosecutors. Look for UBS leaders to press to alleviate this issue if Obama makes it to the White House.

Donor: Google

How Much: $373,212

What They’ll Want: Google and its employees are savvy at everything tech from search to advertising. But just because the company is relatively young and committed to “doing good” doesn’t mean it can’t be a Washington player. Look for Google to ask for a push on net neutrality in return for its princely sums, ensuring Google can continue to erode the margins of more traditional media and telecommunication companies. Further, as Google continues to dominate search and advertising, look for Google to push for friendly officials at Obama’s Justice Department where antitrust issues will be watched over. Google also has an interest in tapping unused TV airwaves called “white spaces”, so don’t be surprised to find Google’s lobbyists at the door of Obama’s FCC (Federal Communications Commission).

Donor: Lehman Brothers

How Much: $353,922

What They’ll Want: Painfully hurting from wide exposure to the credit crisis, the large Wall Street investment banking may be filling Obama’s coffers in preparation for a cozy government bail out. But more likely, Lehman is lobbying for things similar to its financial competitors: fewer regulations and taxes. Hurt by the credit crisis, Lehman is one of the leading Wall Street firms arguing against accounting proposals that will force banks to account for securitized assets (like the many worthless mortgage assets Lehman holds) on their balance sheets. Implementation of this accounting change would likely erase billions more in Lehman’s profits; if elected lookfor officials to push back on the Obama administration and others in power this fall.

Donor: National Amusements

How Much: $352,603

What They’ll Want: What could a theatre chain want from a potential Obama administration that could inspire over $350,000 in donations? Don’t be misled. National Amusements has long been media mogul Sumner Redstone’s vehicle of choice when making campaign contributions. Through the company Redstone owns controlling interests CBS, Viacom (which owns MTV, BET), Paramount Pictures, and Dreamworks. Look for National Amusements to ask for looser regulations from the FCC regarding television ownership that prohibits cable television stations from also owning broadcast stations in the same market. Beyond the six figure donation, Redstone can donate “in-kind” with favorable press to the Obama campaign - look for the media maven to ride out his agenda to the fullest extent possible.

Note: Due to campaign finance laws, corporations themselves cannot donate to candidates. Rather, the money comes from the organization’s PAC, its individual members or employees or owners, and those individuals’ immediate families.