Capitol Assets: Congress’s Wealthiest Shielded from Effects of Deep Recession

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From WP:

The wealthiest one-third of lawmakers were largely immune from the Great Recession, taking the fewest financial hits and watching their investments quickly recover and rise to new heights. But more than 20 percent of the members of the current Congress — 121 lawmakers — appeared to be worse off in 2010 than they had been six years earlier, and 24 saw their reported wealth slide into negative territory.

Those findings emerge from an ongoing examination of congressional finances by The Washington Post, which analyzed thousands of financial disclosure forms and public records for all members of Congress.

Most members weathered the financial crisis better than the average American, who saw median household net worth drop 39 percent from 2007 to 2010. The median estimated wealth of members of the current Congress rose 5 percent during the same period, according to their reported assets and liabilities. The wealthiest one-third of Congress gained 14 percent.

Because lawmakers are allowed to report their holdings and debts in broad ranges, it is impossible for the public to determine their precise net worth. They also are not required to reveal the value of their homes, the salaries of their spouses or money kept in non-interest-bearing bank accounts and their congressional retirement plan.

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Among the findings:

  • The estimated wealth of Republicans was 44 percent higher than Democrats in 2004, but that disparity has virtually disappeared.
  • The number of millionaires in Congress dropped after the Great Recession; the 253 who have served during the current session are the smallest group since 2004. The numbers are likely to be underestimated because lawmakers are not required to list their homes among their assets.
  • Between 2004 and 2010, 72 lawmakers appeared to have doubled their estimated wealth.
  • At least 150 lawmakers reported receiving more income from outside jobs and investments than from their congressional salaries of $174,000 for rank-and-file members.
  • Representatives in 2010 had a median estimated wealth of $746,000; senators had $2.6 million.
  • Since 2004, lawmakers reported more than 3,500 outside jobs paying their spouses more than $1,000 a year. The lawmakers are not required to report how much the spouses are paid or what they did for the money.
  • Lawmakers’ wealth is held in a variety of ways: 127 primarily in real estate, 117 in institutional funds, 7 in their spouses’ names, 51 in essentially cash, 36 in specific stocks and bonds, 32 in high-turnover trading, 30 in business ownership and 20 in agriculture. More than 40 had reported assets of $25,000 or less.

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