Goldman Sachs (GS) Puts the Kibosh On Political Contributions

July 6, 2010 4:32 PM EDT
According to Fox Business Network's Charles Gasparino, Goldman Sachs Group Inc. (NYSE: GS) has placed an internal moratorium on campaign contributions to both the Democratic and Republican parties until such a time that financial reform is in place.

Gasparino stated, according to sources inside of Goldman, the firm has been taking this step for about a month, as it is not giving contributions because it does not look good.

"Inside Goldman, there is a degree that they don't want to be seen as influencing the process but there is a lot of anger inside Goldman Sachs about the way financial reform worked,"Gasparino said. "How they have been singled out as the culprit in this entire meltdown of the financial system."

According to the report, Goldman does not want to be seen as trying to sway votes by making contributions to politicians that are currently deciding the future of Wall Street.

“The last thing they need to be seen doing is giving a thousand dollar contribution to Chuck Schumer, the New York Senator who is on the Senate Banking Committee,” Gasparino said. "Kristin Gillibrand, the junior Senator from New York, is asking for contributions. Chuck Schumer is always asking for contributions. There is a lot of anger directed at Schumer and Gillibrand from Wall Street."

Also, there is a lot on anger inside of Goldman as the firm sees itself as a target by the government, seeing far more questioning by Congress than firms that were by Goldman’s estimate, far worse culprits during the financial meltdown.

In 2008, Goldman pent 75 percent of its campaign contributions on Democratic candidates, while so far in 2009 the firm has virtually split its campaign expenses between the two parties.

Shares of Goldman Sachs are up 14 cents in aftermarket movement Tuesday to $132.40.

You May Also Be Interested In

Related Categories

Corporate News, Insiders' Blog

Related Entities

Charles Gasparino