WASHINGTON — Members of Congress were pressed hard Monday by financial industry lobbyists and consumer advocates alike seeking favorable language in the massive bailout bill expected to come for a vote this week.
Through conference calls, e-mail and personal emissaries, lenders and other business groups sought to block language that would allow struggling homeowners to have mortgage debt forgiven in bankruptcy cases.
On the other side, labor unions and advocacy groups for low-income people said the bankruptcy provision and other measures to help homeowners were needed to prevent the rescue package from being simply a bailout for Wall Street banks that made bad investment bets.
The sense of urgency facing Congress was heightened by a sharp sell-off in stocks, suggesting the fragility of financial markets anxious for government action. Yet another factor in the mix was money: The securities, banking and mortgage industries are among the biggest campaign contributors to both parties.
Since 2002, the sector has contributed more than $1.1 billion to congressional candidates, with Republicans getting an edge during that period, according to federal lobbying records. The figure does not include millions more donated to the favored charities of prominent politicians and the hundreds of millions spent on lobbying. The sector is among the biggest donors overall; by comparison, another major category, lawyers and lobbyists, gave $646 million during the same period.
In the 2008 election cycle, the list of the top recipients of donations from the financial services, insurance and real estate sectors (all likely to be affected in varying degrees by the legislation) included the leading presidential candidates.
Democratic nominee Sen. Barack Obama took in $22.5 million, followed by New York Sen. Hillary Rodham Clinton with $21.5 million. Arizona Sen. John McCain, the Republican nominee, was close behind with $19.6 million.
Money rained down also on the top members of Congress who are steering the legislation. Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.), a candidate for president during the primaries, received $6 million. His counterpart in the House, Rep. Barney Frank (D-Mass.), received $720,000 this year.
The No. 2-ranking Democrat on Frank's House Financial Services Committee, Rep. Paul E. Kanjorski of Pennsylvania, collected $755,000, and ranking Republican Spencer Bachus of Alabama took in $704,000.
