SEC Commissioner Backs More Disclosure on Political Spending

SEC Commissioner Backs More Disclosure on Political Spending

SEC Commissioner Backs More Disclosure on Political Spending

Without any input from Congress or the courts, federal regulators could force publicly traded companies to disclose political donations. 

Copy Link
Facebook
X (Twitter)
Bluesky
Pocket
Email

Among the many lines of attack campaign finance reformers have opened on the post–Citizens United world of unlimited, dark corporate money, one of the most interesting involves shareholder disclosure. The argument is that if corporations are spending massive sums from their own coffers to influence politics, then shareholders should at least know what the money is going towards. In his opinion in Citizens United, Justice Anthony Kennedy erroneously assumed this was already law—but it isn’t.

Corporations benefit from secret giving because it obscures the true goals of many seemingly earnest political advertisements; an ad criticizing a candidate for supporting health care reform would seem much less convincing people knew for certain it was funded by Aetna. If shareholders were able to discover what kind of electioneering the corporation purchased, that would push corporate spending into the daylight.

Public Citizen has been urging the Securities and Exchange Commission to require publicly traded companies to disclose political donations, and today it picked up an important endorsement—from a current SEC commissioner. At an “SEC Speaks” event in Washington today, commissioner Luis Aguilar said that “investors are not receiving adequate disclosure, and as the investor’s advocate, the commission should act swiftly to rectify the situation.”

Lisa Gilbert, who’s been leading the push from Public Citizen, immediately praised the remarks. “Corporations generate massive profits, in part because of investments by their shareholders,” she said. “And corporations’ new license to spend—a gift in the form of the U.S. Supreme Court’s decision in Citizens United v. Federal Election Commission—could have real consequences to investors.”

If the White House is serious about campaign finance reform—as it claimed to be when announcing it would seek Super PAC donations—it could get behind this push. Similarly, another way to force companies into disclosure would be to issue a federal rule that any corporation with a government contract must reveal its political funding efforts. The administration drafted such a rule in the spring, but Obama has yet to sign it.

Your support makes stories like this possible

From Minneapolis to Venezuela, from Gaza to Washington, DC, this is a time of staggering chaos, cruelty, and violence. 

Unlike other publications that parrot the views of authoritarians, billionaires, and corporations, The Nation publishes stories that hold the powerful to account and center the communities too often denied a voice in the national media—stories like the one you’ve just read.

Each day, our journalism cuts through lies and distortions, contextualizes the developments reshaping politics around the globe, and advances progressive ideas that oxygenate our movements and instigate change in the halls of power. 

This independent journalism is only possible with the support of our readers. If you want to see more urgent coverage like this, please donate to The Nation today.

Ad Policy
x