Common Cause and Public Campaign Financial Regulatory Reform Watch:Big banks Reap What they Sow on the Agriculture Committee  On Wednesday, the Senate Agriculture Committee will hold a hearing on derivatives as part of Congress' efforts to overhaul the financial regulatory system. While derivatives and futures were previously associated with commodities more than securities, the industry has become big business for some of Wall Street's behemoth banks-and they are using their cash to drive the debate. Facts in focus:

• Just five banks and financial firms-Citi, JPMorgan Chase, Bank of America, Morgan Stanley, and Goldman Sachs-hold approximately 95 percent of "over-the-counter" derivatives (those derivatives, like credit-default swaps, that are traded between two parties).[i]

• These companies have spent heavily on lobbying and made large campaign contributions in the past year to influence the policy-making process. According to the New York Times, members of the Senate agriculture committee have received $22.8 million in the 2010 election cycle from individuals and PACs associated with the financial industry-that's twice what they have received from agriculture interests.[ii]

• Some of the biggest players in derivatives trading spent heavily to lobby Congress in 2009.[iii]

  JP Morgan $6,170,000 Citigroup $5,560,000 Bank of America $3,680,000 Morgan Stanley $2,880,000 Goldman Sachs $2,830,000   $21,120,000  

• Agriculture Committee member Sen. Mitch McConnell (R-Ky.), who is leading the opposition to financial reform in the Senate, has greatly benefited from the industry's largesse. His campaign has received $4,250,800 from financial industry interests since 1998.[iv]
• Another committee member, Sen. John Cornyn (R-Texas) has received $4,473,542 from financial interests since 2002. [v]

• Sen. McConnell recently joined Sen. Cornyn, the Senate Republicans' chief fundraiser, at a meeting of Wall Street executives and hedge fund managers.[vi] The following week, Sen. McConnell began his campaign to block financial reform legislation.

  [i] Wall Street lobby defends $35 billion derivatives haul (August 31, 2009), Bloomberg) [ii] A finance overhaul fight draws a swarm of lobbyists (April 19, 2010), New York Times. [iii] Data provided by the nonpartisan Center for Responsive Politics. [iv] Ibid. [v] Ibid. [vi] Street execs give pols earful on financial reform (April 12, 2010), Fox Business.