June, 03 2010, 10:24am EDT
Revolving Door Spins Quickly Between Congress and Wall Street
New Analysis Shows Connections Between Congressional Banking Committees and Financial Sector Lobbyists
WASHINGTON
Organizations in the financial services sector have deployed at least
1,447 former federal employees to lobby Congress and federal agencies
since the beginning of 2009, according to a joint analysis of federal
disclosure records and other data released today by Public Citizen and
the Center for Responsive Politics.
This small army of registered financial services sector lobbyists
includes at least 73 former members of Congress, of whom17 served on the
banking committees of either the U.S. House of Representatives or the
Senate. At least 66 industry lobbyists worked for these committees as
staffers, while 82 additional lobbyists once worked for congressional
members who currently serve on these key committees.
Further, at least 42 financial services lobbyists formerly served in
some capacity in the U.S. Treasury Department. At least seven served in
the Office of the Comptroller of the Currency, including two former
comptrollers.
"Wall Street hires former members of Congress and their staff for a
reason," said David Arkush, director of Public Citizen's Congress Watch
division. "These people are influential because they have personal
relationships with current members and staff. It's hard to say no to
your friends, but that's what Congress needs to do. Listening to them
would result in a bill that would fail to get the job done and would
disappoint the American people."
Added Sheila Krumholz, executive director of the Center for
Responsive Politics, "Companies pay a premium for lobbyists who've spun
through the revolving door because it can be a small price to pay
relative to the huge payoff if they can shape legislation. These
lobbyists tap insider knowledge and personal relationships, knowing that
their old friends and former co-workers won't want to let them down."
Prominent former congressional members now lobbying on behalf of
financial services sector interests include two former Senate majority
leaders (Bob Dole, R-Kan., and Trent Lott, R-Miss.), two former House
majority leaders (Dick Armey, R-Texas, and Dick Gephardt, D-Mo.) and a
former speaker of the House (Dennis Hastert, R-Ill.).
The analysis is drawn from lobbying disclosure information filed with
the secretary of the Senate, as well as the Center for Responsive
Politics' data.
The report includes tables listing former members of Congress, former
staffers for the banking committees and lobbyists who previously worked
for current banking committee members.
The report is available at https://www.citizen.org/documents/FinancialRevolvingDoors.pdf.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
Over Apple's Objections, Oregon Governor Signs Nation's Strongest Right to Repair Law
"Oregon becomes the first state to ban 'parts pairing,' which let companies like Apple decide when and how you replace parts."
Mar 27, 2024
In a move that advocates said will save Oregon residents money while supporting small businesses and reducing waste of electronic devices, Democratic Gov. Tina Kotek on Wednesday signed the Right to Repair Act, a law that passed earlier this month despite Apple's lobbying efforts.
The Public Interest Research Group (PIRG), applauded the signing of the bill, which requires manufacturers to provide Oregonians and small repair businesses with access to the parts, tools, and information needed to fix personal electronics and household appliances.
Manufacturers like Apple frequently require consumers to go to their stores or authorized service providers for repairs, making them expensive for customers and difficult to access for people who live far from the providers.
Charlie Fisher, state director of Oregon PIRG, said the law means Oregon is "moving forward on an innovation even more critical than a new gadget: the right to fix our electronic devices."
"By eliminating manufacturer restrictions, the right to repair will make it easier for Oregonians to keep their personal electronics running," said Fisher. "That will conserve precious natural resources and prevent waste. It's a refreshing alternative to a 'throwaway' system that treats everything as disposable."
The Right to Repair Act, which will go into effect on January 1, 2025, was supported by roughly 100 small businesses that provide repairs across the state, as well as recycling nonprofit organizations.
Apple testified against the bill, saying it opposed a provision against "parts pairing." The practice requires consumers or independent repair businesses to purchase parts from Apple and have them validated by the company.
John Perry, a senior security manager at Apple, told state senators that the provision would "undermine the security, safety, and privacy of Oregonians by forcing device manufacturers to allow the use of parts of unknown origin and consumer devices."
State Rep. Courtney Neron (D-26) cited a letter from the Federal Trade Commission when she told her colleagues that Apple's parts paring requirements "drive up the price that consumers must pay to fix a device and cause consumers to purchase a new device before the end of its useful life."
"Manufacturer repair restrictions also make it more challenging for small repair businesses to compete and contribute to unnecessary e-waste," she said.
Pro-labor media organization More Perfect Union called Kotek's signing of the bill "a major loss for Apple."
"Oregon has a proud history of passing forward thinking policies that help Oregonians steward and respect the resources that go into making the products we use everyday," said Celeste Meiffren-Swango, state director of Environment Oregon, "and we are building on that legacy with the Right to Repair Act."
Keep ReadingShow Less
Biden's Bid to Tax the Rich Could Be the 2024 Lift the President Needs
New polling finds a majority of Americans across party lines support raising taxes on billionaires.
Mar 27, 2024
During his State of the Union address, U.S. President Joe Biden declared that he wants to raise taxes on the rich, and polling results published Tuesday show that both Democratic and Republican voters in important swing states support doing so.
The polling firm Morning Consult reports that 69% of registered voters in seven swing states say they support raising taxes on billionaires. That includes states like Michigan, Wisconsin, and Pennsylvania.
One of the most consistently popular policy proposals, across parties, is raising taxes on the rich. https://t.co/1fwJK5z0EN
— David Roberts (@drvolts) March 26, 2024
The poll found 58% of Republicans, 83% of Democrats, and 66% of independents support raising taxes on billionaires. The poll also found similar numbers of voters support raising taxes on people who make more than $400,000 per year.
Biden's 2025 budget plan includes a hike in taxes on the rich that would generate significant revenue for the federal government.
"Biden proposes to raise $503 billion over the next decade by imposing a 25% tax on people who claim more than $100 million in assets—a source of wealth that has long been beyond the reach of the [Internal Revenue Service]," The Washington Postreports.
In a New York Times opinion piece that was published on Wednesday, Felicia Wong, president and chief executive of the progressive advocacy organization Roosevelt Forward, outlined how opinions have changed about how much wealth is too much and if it should be more heavily taxed.
"Should we have trillionaires? Should we even have billionaires? According to at least one recent analysis, the economy is on track to mint its first trillionaire—that is 1,000 billion—within a decade. Such staggering accumulations of wealth are made possible in large part by the fact that America's federal tax burden is so comparatively light," Wong wrote. "After a long period of seeming to venerate the 1 %, or the 1% of 1% of 1%, American sentiment is swinging hard against this imbalance."
Keep ReadingShow Less
Groups Warn Gang Crackdown in El Salvador Has Led to Human Rights Crisis
"Reducing gang violence by replacing it with state violence cannot be a success," said one Amnesty International official.
Mar 27, 2024
Two years after Salvadoran President Nayib Bukele declared a "state of exception" that was originally adopted for a 30-day period in response for a spate of apparent gang killings, the government is boasting that its policies have driven down the homicide rate by 70%—but international rights defenders on Wednesday warned the crackdown has plunged the country into a human rights crisis.
Amnesty International said that according to local victims' movements and human rights groups, El Salvador's former murder rate has been replaced by 327 cases of forced disappearances since March 2022, as well as 78,000 arbitrary detentions as police have raided neighborhoods, particularly in low-income areas.
"A total of approximately 102,000 people [are] now deprived of their freedom in the country—a situation of prison overcrowding of approximately 148% percent and at least 235 deaths in state custody," said Amnesty.
Bukele adopted the state of emergency after El Salvador reported its deadliest peak in apparent gang violence in recent history, with gangs blamed for 92 people's deaths over three days in March 2022.
Under the emergency order, authorities have suspended the right to privacy in communications, to be informed of the reason for one's arrest, and to be taken before a judge within 72 hours of an arrest. A report by Human Rights Watch in December 2022 also warned of "torture, or other cruel, inhumane, or degrading treatment against people accused of crimes." Officers told people during arrests only that they were following "orders from the president," and in some cases, told people they were being taken to a police station for "questioning" when they were actually under arrest.
"The insistence of Nayib Bukele's government on maintaining the state of emergency, the adoption of disproportionate measures, and the denial, minimization, and concealment of reported serious human rights violations reflect the government's unwillingness to fulfill its duty to respect and promote human rights in the country," Ana Piquer, Amnesty International's Americas director, said Wednesday. "It also demonstrates its inability to design comprehensive long-term measures to address the root causes of violence and criminality without forcing the population to choose between security and freedom."
Amnesty's statement came a day after Justice and Security Minister Gustavo Villatoro said Bukele's government plans to continue its strategy to "eradicate this endemic evil."
"This war against these terrorists will continue," said Villatoro in a televised address.
Despite outcry from domestic and international human rights groups, Bukele won his reelection campaign in a landslide last month. El Faro reported that Bukele's government had violated some election rules including airing ads within three days of the election and campaigning on Election Day. Some poll workers also wore clothes identifying them as supporters of Bukele's Nueva Ideas party, and police allegedly blocked journalists from working near polling locations, prompting accusations of intimidation and harassment by the Association of Journalists of El Salvador.
The Due Process of Law Foundation released a report Tuesday warning that Bukele's government could be guilty of crimes against humanity as it continues its crackdown.
"Well over 76,000 people, including minors, have been detained under the state of exception, accused of having ties to gangs," wrote the group. "Many or most of these detentions appear to be occurring without any reasonable grounds for suspecting that the person may have committed a crime. Mere physical appearance—including having tattoos—seems to be enough to put people at risk of arrest, with young men from poor districts a particular target. Arrests of this nature are in themselves discriminatory, and may well qualify as arbitrary. According to the United Nations Working Group on Arbitrary Detention, under customary
international law, 'The legal basis justifying... detention must be accessible, understandable, nonretroactive, and applied in a consistent and predictable way.'"
Amnesty noted on Wednesday that human rights defenders and dissidents also face "increased risk" under the state of emergency, "as they are criminalized." As Common Dreams reported this week, five water defenders are scheduled to stand trial on April 3 for allegedly killing a military informant, an accusation for which the government has produced no proof.
"In the absence of any kind of evaluation and checks and balances within the country, and with only a timid response from the international community, the false illusion has been created that President Bukele has found the magic formula to solve the very complex problems of violence and criminality in a seemingly simple way. But reducing gang violence by replacing it with state violence cannot be a success," said Piquer. "The authorities in El Salvador must focus the state response on comprehensive policies that respect human rights and seek long-term solutions."
"The international community," she added, "must respond in a robust, articulate and forceful manner, condemning any model of public security that is based on human rights violations."
Keep ReadingShow Less
Most Popular