Bank of America will effort it's tatics in this year

Bank of America has at last repaid the $45 billion it had taken from the taxpayers. There are rumors coming from Washington about a swath of new regulations. This has prompted the bank to put in more teeth into its lobbying tactics starting from the close of 2009.

Bank of America spent in all $3.6 million in 2009 for lobbying with the legislators in Washington on many issues starting from reforms in credit cards to suggested setting up of agency to protect the interests of consumers. The bank wanted to decide on how much the top brass should be paid and about the part the bank would play in managing foreclosures, bankruptcy, student loans and on matters relating to the complex financial tools like derivates that were dealt with over the counter.

The money spent on lobbying was less by 13% from the amount it had spent in 2008 – $4.1 million. During the first half of last year the bank had curtailed its expenses on lobbying as compared to the previous year, because of recessionary climate. It also hired less number of outside companies. Another reason for this austerity was that during that period the bank was still obligated to the amount it had taken from the taxpayer’s kitty – TARP. But in the first part of December the money was returned in full.

Other banks too either retained their same level of spending or decreased. In 2009 Goldman Sachs spent $2.8 million as against $3.3 million in 2008 – it being a drop by 15%. Citigroup spend the same in 2009 as it had in 2008 – $5.5 million as per the findings of Bloomberg.

Although Bank of America had reduced its spending in 2009 initially, it put on full speed as the year advanced. The fourth quarter accounted for a third of its spending. Thus after a pause during the early part of the previous year, suddenly the bank became active with work. Shirley Norton, spokeswoman of Bank of America said, “Our focus remains trying to be constructive in helping ensure that regulatory reform is thoughtfully done and fosters sound and competitive banking.”

Last fall the House passed an important financial reform bill relating to the proposal of setting up a Consumer Financial Protection Agency. It was authored jointly by Mel Watt (Democrat) and Brad Miller (Democrat). The important banks and the majority of the Republicans had overwhelmingly opposed it.

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