Bank of America (NYSE:BAC) Spent $3.6 Million Lobbying Congress Last Year – Most in Fourth Quarter

Although Bank of America (NYSE:BAC) spent $3.6 million on lobbying Congress last year, it was far less than the $4.1 million they spent in 2008. Still, they increased spending significantly in the fourth quarter as major issues which could have a long-term impact on the industry began to pick up at that time.

Part of their taking their time on increasing spending was probably related to paying off their TARP funds first, in order to keep that from becoming a negative influence on the company when they started a much stronger lobbying effort as the year went on.

There were a whole slew of important issues the company wanted to have a say in, including credit card reform, student loans, foreclosures, a new consumer financial protection agency, among many others that continue to come up, including the latest reforms proposed by President Obama.

The majority of other major banks also cut back on their lobbying spending, with some keeping it about the same, as Citigroup (NYSE:C), which kept their spending for lobbying at about $5.5 million, among the highest in the industry. Goldman Sachs spent about $2.8 million in 2009, a decrease of about 25 percent from the $3.3 million spent in 2008.

One of the major lobbying efforts focuses on the proposed creation of the new Consumer Financial Protection Agency, which while going forward, loses more of its teeth every time it gets touched, and ultimately may not even end up making it through the process.

Supposedly the new agency would be created to deal with consumer mortgages, banking and credit card issues. The idea is to make them fairer; which in reality a buzzword for some type of socialist idea and control. Because fair can’t be even defined, the idea of a consumer agency built for that purpose would probably inflict a ton of unintentional damage on the banking industry, as the other ways they generate money is under tremendous pressure at this time as well.

How would the banking and financial industry survive if the government takes away much of the investment side of the business, and then cuts back on their ability to generate income from fees and other means related to consumer services? This one doesn’t make much sense, and would probably make things much worse than they are now; the reason the banking industry is fighting against it so hard, and why politicians are less than enthusiastic to throw their strong support to it.

As far as the lobbying effort from the banking industry in general, politicians on both sides of the aisle say it really doesn’t carry that much weight with them. Still, claims are the process is actually a good one, and banks and other financial institutions offer constructive input which is listened to at times, and other times disagreed with and ignored, according to a number of lawmakers.

One thing that is good from any lobbying effort is the slowing down of the process so the issues can be debated and looked at from various viewpoints, as many regulations always have unintended consequences which do much harm which wasn’t seen when bills were introduced to take care of perceived problems.

With many important issues on the front burner, and the recession continuing on, there will probably be a renewed increase in lobbying from Bank of America and others as key issues are brought forth to eventually be voted on.