Study documents how profitable access to Obama’s White House was

Obama was a very corporate friendly president. He was all about pay to play. Really, a big part of his “legacy.”

This, is how the crony game is played (one of the ways) at the highest levels.

(From The Washington Examiner)

The researchers found two notable things about the companies that made up these 2,286 meetings: That money helped the executives get in the door, and getting in the door helped them make money.

The first finding could be put this way: Access could be bought through campaign contributions and lobbying expenditures.

“We find that firms that contributed more to Obama’s presidential election campaigns are more likely to have access to the White House. We also find that firms that spend more on lobbying, firms that receive more government contracts, larger firms, and firms with a greater market share are more likely to have access to influential federal officials.”

Second, they found that access was profitable.

“Corporate executives’ meetings with White House officials are followed by significant positive cumulative abnormal returns.” That term, “cumulative abnormal returns,” in this case basically means how much the stock in question outperformed the S&P 1500 index over the 10 days before and the 30 days after the meeting. “We also find that the result is driven mainly by meetings with the President and his top aides. We find insignificant CARs for canceled visits, suggesting that the actual incidence of the meetings matters for firm value.”

Click here for the article.