Since we’ve reported extensively about bailed-out banks using public money to lobby against your right to free choice, it’s worth noting that Sam Stein at the Huffington Post is reporting that there’s another one to add to the list — Citigroup:
Embattled financial giant Citigroup Inc., which has received at least $50 billion in federal bailout funds, hosted a private conference call on Wednesday to build opposition to the Employee Free Choice Act…
Wednesday’s conference call was led by Glenn Spencer, a senior executive at the U.S. Chamber of Commerce and an ardent EFCA opponent. It was promoted as “An Update on the Employee Free Choice Act,” but much of the content was focused on demonizing the legislation. EFCA will “inhibit flexibility,” “hamper companies from competing effectively,” and prove “cumbersome” for business, declared Spencer. “From the Chamber’s perspective, and I would say probably from the whole business communities perspective, there are really no amendments you could make to this bill that would make it acceptable.”
The lines of attack from the Chamber official were familiar. But Citigroup’s participation, led by retail analyst Deborah Weinswig, raised some eyebrows. The bank has received ample taxpayer-funded aid through the TARP program, leading some to question whether rallying support for an anti-union effort was the best use of its time or that money.
Ezra Klein notes that Weinswig’s participation raises serious questions of how impartial Citi’s stock analysts really are, given that just two days ago Weinswig lowered her rating for Wal-Mart’s stock, citing the introduction of the Employee Free Choice Act in Congress as her reason:
As I reported at the time, that struck many on the Left as a peculiar decision. EFCA was no likelier to pass on Tuesday than it was to pass a month ago. Indeed, its chances had arguably dimmed, as Southern Democrats began voicing concerns about the legislation. The timing seemed to maximize political impact rather than accurately reflect changing market or legislative conditions. Meanwhile, Citibank did not upgrade its recommendations on heavily unionized retailers who would benefit from EFCA, like Safeway. This led many on the Left suspected that Weinswig’s call was less about accurately pricing Wal-Mart’s stock and more about inducing panic over the Employee Free Choice Act. The market agreed: Wal-Mart’s stock rose even as Citibank cut their earning estimate.
In most quarters, this was dismissed as a conspiracy theory. At least, it was until yesterday.