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July 26th, 2010

Loebsack’s Refund Call Is “Height of Hypocrisy” Considering He Sided With Goldman Sachs

Rep. David Loebsack’s call for the federal government to use part of a federal settlement with Wall Street investment house Goldman Sachs to reimburse Cedar Rapids and Linn County is “the height of hypocrisy,” Republican candidate Mariannette Miller-Meeks said today.

“In his four years in Congress, David Loebsack already has a long history of siding with Goldman Sachs. It rings hollow now that he’d complain about ‘Wall Street fat cats’ when he voted for the financial reform bill that Goldman Sachs supported. When two Republicans on the Securities and Exchange Commission wanted to press harder on fraud charges and secure a bigger settlement from Goldman Sachs, David Loebsack opposed them,” Miller-Meeks said. “Maybe that’s why Goldman Sachs has been a big contributor to congressional Democrats. Iowans need to know this is yet another situation where David Loebsack acts like a populist back home and plays the politics-as-usual game in Washington because Nancy Pelosi and her crowd have convinced him that he can get away with it.”

Earlier this year, the SEC concluded an investment fund created by Goldman Sachs was designed to fail. Clients such as Cedar Rapids and Linn County were unaware of the deception.  When the settlement was announced last week, the SEC stated funds would be returned to harmed investors.

Miller-Meeks noted that Loebsack failed to urge the SEC to assist Iowa’s teachers, firefighters, police, nurses and other public employees when Westridge Capital Management allegedly defrauded the Iowa Public Employees Retirement System of $339 million was revealed in 2009.

“We didn’t hear a word out of David Loebsack in a non-election year when teachers, firefighters, police and others public employees were ripped off.  Suddenly, he’s acting like he’s riding to the rescue of Cedar Rapids and Linn County,” Miller-Meeks said. “David Loebsack knows the SEC has already ordered money to be returned to investors like Cedar Rapids and Linn County, and it’s a joke for him to act like he’s election-year grandstanding changes that. He’s trying to jump on a train that already left the station.  It’s the height of hypocrisy because he helped engineer the kind of ‘financial reform’ that Goldman Sachs and other Wall Street firms wanted.”

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The Iowa Republican

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