Making Government Transparent and Accountable
The Sunlight Foundation uses cutting-edge technology and ideas to make government transparent and accountable. Underlying all of our efforts is a fundamental belief that increased transparency will improve the public's confidence in government
The Sunlight Foundation Blog
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Lobbyists and Republicans Huddle As Financial Reform Ball Moves Down Field
Roll Call reports that House Republican leadership met with approximately 100 lobbyists to hash out strategy to defeat financial regulatory reform:
In a call to arms, House Republican leaders met with more than 100 lobbyists at the Capitol Visitors Center on Tuesday afternoon to try to fight back against financial regulatory overhaul legislation.
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“The message was [House Financial Services Chairman Barney] Frank and the Democratic majority are ruining America, ruining capitalism, and stand up for yourselves,” said a lobbyist who attended the meeting. “They said, ‘Look, you all oppose this bill, but only a few of you have come out publicly.’”
Does anyone on Capitol Hill have any interest in releasing these types of visitor logs? Over 100 lobbyists go to meet with House Republicans. House Republicans number one-hundred ninety-eight. Not all of them were likely in this meeting, so in all likelihood we had a 1:1 or greater ratio of lobbyists to lawmakers. Who knows who these lobbyists are?
Of course, this doesn’t just apply to this particular meeting between Republicans and their allies, but also to Democratic lawmakers and their lobbyist sit-downs. The White House has a policy of releasing their visitor logs to the public. Congress should consider letting the public know what lobbyists and industry executives they are sitting down with when they discuss legislation.
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Rep. Campbell’s Constituents: Ford, Hondas, Chevys, Beemers…
Rep. John Campbell is offering an amendment to legislation creating a Consumer Financial Protection Agency that would provide a “special interest carve out” for auto dealers. The amendment would strip the the newly proposed agency of its ability to oversee financing by car dealers. Campbell is a former car dealer who currently rents out seven properties to car dealers or car repair shops. (Six car dealerships and one repair shop.)
The 2008 personal financial disclosure filed by Campbell earlier this year shows that the total value of the these properties is between $6,500,007 and $31,000,000 and his total income from the properties to be between $700,000 and $7,000,000. According to a release by Public Campaign and Common Cause, Campbell has received over $170,000 in campaign contributions from auto dealers over his career.
In December of 2008, Campbell stated that he would recuse himself from voting on any automotive bailout plans considering how close his personal finances are tied to the industry. When the Auto Industry Financing and Restructuring Act (H.R. 7321) did come to a vote, Campbell voted “present,” fulfilling his promise to avoid a conflict of interest. Now in the fall of 2009, Campbell has inserted himself directly into a conflict of interest situation by offering an amendment that could potentially affect his bottom line and those of his campaign contributors.
Maybe he should have kept the principled stance he had last year. Are you listening, man?
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Ratigan Waves Sunlight In Frank’s Face
MSNBC’s Dylan Ratigan flashes an infographic made by Sunlight’s Kerry Mitchell detailing the percentage of contributions from the finance, insurance and real estate sector for top Financial Services Committee members while debating committee chair Barney Frank. Here’s the original graphic and accompanying post. And the video:
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Chamber of Commerce Deploys Former Government Officials to Lobby On Financial Regulation
Billed as the biggest opponent of financial regulatory reform, the US Chamber of Commerce is deploying former government officials to lobby the House Committee on Financial Services as the mark-up on legislation begins today. Fifty-five percent of lobbyists registered to lobby for the Chamber of financial regulation are former government officials, including the former chief of staff to a key committee member.According to second quarter lobbying disclosure reports, the Chamber currently employs, directly or through outside lobbying firms, thirty-four lobbyists registered to lobby on financial regulation. Nineteen of those thirty-four are former government officials. Lobbyists with prior work in government are well-suited to quickly get results as they have established relationships with important actors on Capitol Hill and in the Executive Branch.
John Michael Gonzalez is one of the nineteen former government officials hired to lobby with the Chamber of Commerce. Up until this year, Gonzalez was the chief of staff to Financial Services Committee member Melissa Bean. Bean is currently pushing to remove a provision from the Consumer Financial Protection Act that would allow states to craft stronger consumer protections. The move is backed by national banks and trade groups like the Chamber of Commerce. Bean has received over 40% of her 2009 campaign contributions from the finance, insurance and real estate sector.
Gonzalez works for the lobbying firm Peck, Madigan, Jone, & Stewart Inc. His company bio specifically hightlights his relationship with the Chamber when working for Bean, “Mr. Gonzalez successfully planned and executed a winning re-election strategy, raising $4.3 million and earning the most support of any incumbent from the US Chamber of Commerce.”
Ethics law preclude Gonzalez from lobbying Bean’s office, but do not keep him from lobbying the Financial Services Committee. This could include key committee members who may support Bean’s preemption policy. CongressDaily reports that Rep. Dennis Moore is in discussions with Rep. Mel Watt about a compromise. Both Moore and Watt have received over 45% of their 2009 campaign contributions from the finance, insurance and real estate sector.
There is little doubt that lobbyist pressure is being put on members to support Bean’s preemption policy given the preponderance of lobbyists in attendance at the committee mark-up. Gonzalez’ long-time Hill connections, especially through Bean’s office to the Financial Services Committee, will give the Chamber a boost in its lobbying effort.
Bean is being opposed by Governors Arnold Schwarzenegger and Jon Corzine and Illinois Attorney General Lisa Madigan. Madigan has gone so far as to tell Bean to, “put the interests of our consumers before those of the banks that led us in part to this financial crisis.”
According to the Center for Responsive Politics, the Chamber of Commerce has spent over $26 million so far this year on lobbying expenses. This total, if spending remains the same across quarters, will exceed their spending for 2008 and become the largest amount ever spent on lobbying by the Chamber.
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Top Financial Services Committee Members Rely Heavily On Finance Campaign Contributions
One year after the biggest economic collapse since the Great Depression, Congress is still debating new financial regulations to protect consumers and prevent risk-taking in the financial sector. The House Committee on Financial Services is currently undertaking the important first step of writing, amending and voting on some of the pieces of the long-proposed financial regulatory reform. While debating these issues top committee members have been the recipients of disproportionate campaign contributions from the very industry that they are tasked with regulating.
Twenty-seven committee members have so far received over one-quarter of their contributions from the finance, insurance and real estate (FIRE) sector. This includes Chair Barney Frank, Ranking Member Spencer Bachus, four subcommittee chairs and four subcommittee ranking members. Of the twenty-seven, twelve committee members received over 35% of their contributions in 2009 from the FIRE sector. All contribution data was collected from the Center for Responsive Politics’ OpenSecrets.org.Ranking Member Bachus, a crucial decision maker on the committee, received 71% of his campaign contributions from the finance, insurance and real estate (FIRE) sector so far this year. (These numbers run from January 1-June 30.) For his career, the Alabama congressman receives 45% of his contributions from the FIRE sector. Bachus leads the committee in his reliance on FIRE sector campaign contributions. Bachus has taking a position in opposition to most of the regulatory reforms. Bachus recently stated in a hearing, “this is absolutely the wrong time to be creating a new government agency empowered not only to ration credit, but to design the financial products offered to consumers.”
Top Recipients of FIRE Campaign Contributions by % (2009) Name Party FIRE Contributions Total Contributions Percentage Spencer Bachus R $161,200 $226,930 71.04% Kenny Marchant R $25,000 $46,043 54.30% Paul Kanjorski D $215,200 $397,215 54.18% Greg Meeks D $114,900 $218,340 52.62% Mike Castle R $104,000 $200,027 51.99% Dennis Moore D $139,097 $275,480 50.49% Mel Watt D $23,000 $50,696 45.37% Melissa Bean D $269,800 $634,535 42.52% Ed Royce R $200,635 $504,418 39.78% Randy Neugebauer R $146,810 $384,205 38.21% Jeb Hensarling R $140,660 $371,731 37.84% Nydia Velazquez D $58,100 $164,750 35.27% View the bar chart Pennsylvania Rep. Paul Kanjorski is the Chair of the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and is tasked with crafting many of the initial bills for the proposed financial regulatory reform. While undertaking this important work Kanjorski has had enough time to raise large sums for his reelection. Of the $397,215 that Kanjorski has raised in 2009, 54% of it comes from the FIRE sector. For his career, Kanjorski received 44% of his contributions from the FIRE sector. Of all Financial Services Committee members, only Kanjorski and Bachus receive over 40% of their career campaign contributions from the FIRE sector.
Kanjorski has stated that he will be watchful of the influence the finance and insurance companies hold in the committee, “”We must ensure that special interests do not weaken particular solutions to the point of becoming toothless.” Earlier this year, however, Kanjorski held a fundraiser that was thrown by lobbyists for financial services organizations. Kanjorski refused to release a list of attendees to the fundraiser.
Recently, Kanjorski has introduced a series of bills to reform the regulatory structure for the SEC, hedge funds and insurance. Many trade groups and companies that have donated to Kanjorski and other committee members are organizing to oppose large sections of the bills.
The industry has already had successes this year. Committee consideration of a bill to create a proposed Consumer Financial Protection Agency was delayed after industry trade groups sent a letter to the committee demanding they delay consideration. The bill was later changed to be narrower in focus than the original language.A Bloomberg report also notes that the derivatives lobby, headed by large banks JPMorganChase, Goldman Sachs and Credit Suisse, worked the New Democrats, including Rep. Melissa Bean, to get changes made to a bill aimed at filling holes in derivative regulation. Officials in the Obama administration stated that the resulting bill, released as a discussion draft, “created too many loopholes and had the potential to exclude all hedge funds and corporate end-users from oversight.” Bean received 42% of her $634,535 in campaign contributions in 2009 from the FIRE sector.
While top committee committee members are seeing the FIRE sector make it rain on their campaign committees, a number of less senior members are pulling in more modest sums. Thirty-five committee members receive 20% or less of their 2009 contributions from the FIRE sector. Ten of these thirty-five members received 12% or less from the FIRE sector so far in 2009, half of the 24% committee average.
These bottom twelve include Rep. Maxine Waters, who has received no money from the sector, and Rep. Ron Paul who has pulled in only $1,000 or 3% of his 2009 campaign haul. The other members in the bottom ten are Reps. Steve Driehaus (8%), Keith Ellison (8%), Mary Jo Kilroy (8%), Frank Lucas (9%), Carolyn McCarthy (11%), Alan Grayson (12%), Adam Putnam (12%) and Al Green (12%).
All campaign contribution data is courtesy of the Center for Responsive Politics (OpenSecrets.org) A CSV of the research is available. Feel free to use it, but please cite Sunlight and CRP/OpenSecrets.
