Health-care ‘reform’ coauthor cashes out to K Street

[Originally posted at Beltway Confidential]

When the health-care bill passed in March, I wrote that the health-care lobbying was just beginning and that: “You’ll also see the Democratic staffers who wrote the bill rewarded with plush lobbying gigs.”

It didn’t take long for me to be proven right. Akin Gump, whose clients include Aetna, Pfizer, General Electric, and the Pharmaceutical Researchers and Manufacturers of America, has hired a top staffer to House Speaker Nancy Pelosi — a staffer who played a key role in passing the health-care bill.

From Akin Gump’s press release:

Arshi Siddiqui, senior policy advisor and counsel to House Speaker Nancy Pelosi (D-CA), will join Akin Gump Strauss Hauer & Feld LLP as a partner in the policy practice in Washington….

Since joining Rep. Pelosi’s leadership staff in 2003, Ms. Siddiqui has provided counsel on numerous legislative initiatives, including the historic comprehensive health insurance reform legislation, the economic recovery package, and the financial recovery and stimulus bills.

Her work on health-care was so important, Pelosi thanked her by name on the House floor.

But check out Siddiqui’s portfolio as listed by Akin Gump — it’s a compendium of corporate welfare: the bailout, the stimulus, and a health-care bill that mandates private health insurance and subsidizes drug companies until they blush.

Not to question Siddiqui’s motives, but to point out the incentives that exist on Capitol Hill, imagine a staffer who pushed through a bill that removed regulations on insurers, repealed subsidies, and generally got government out of the hair of hospitals, device-makers, insurers, and drug companies. That result would probably be companies reducing their lobbying.

But write a bill that injects government into every decision — as a regulator and a funder — and you make lobbyists more important. And who better to help you navigate the maze of new handouts and rules that the people who wrote the rules?

This is why Obama cannot simultaneously increase government control over the economy and reduce the influence of K Street and special interests. Big Government is the mother’s milk of the special interests.

Obama, who "excluded lobbyists," has appointed 50

Remember how President Obama claimed "we have excluded lobbyists from policymaking jobs"? Well, his recess appointments over the weekend included lobbyists No. 47, 48, 49, and 50. My column tells the tale:

President Obama used his recess-appointment power to place four former federal lobbyists -- representing defense contractors and the agri-chemical industry among others -- in top policy jobs. Obama's maneuver dodges a Senate floor debate and sweeps under the rug an inauspicious milestone: The appointment of the 50th lobbyist to a policymaking job by a president who claims he's "excluded" them.

And here's my list of the former lobbyists in policymaking jobs in the Obama administration.

Cashing out of the Obama Administration

The revolving door Obama pledged to "close" -- it's still spinning. My column:

A top aide to Treasury Secretary Tim Geithner has cashed out this week, joining a lobbying and consulting firm with a client list that includes the nation's largest banks.

Damon Munchus is at least the third top Obama official who has exited the administration through the revolving door that opens to K Street -- in keeping with President Obama's ethics rules, but contrary to his clean-government rhetoric. The White House Web site last April stated that Obama was "cracking down on special interests and, in particular, lobbying abuses," by issuing "the toughest rules in history closing the revolving door between K Street and the executive branch." But he hasn't "closed" that door.

Dan Coats, lobbyist for fat cats, plots Senate return

My latest column at the Washington Examiner explores the lobbying record of Republican Senate candidate Dan Coats:

Democrats have been quick to attack Coats as a lobbyist who has done the bidding of the fattest fat cats. But, ironically, the policies Coats advanced on behalf of his corporate clients are the same bailouts, regulations, and overspending that President Obama has championed in the name of "change." And Coats' biggest clients -- Google and the Pharmaceutical Researchers and Manufacturers of America -- have been intimate Obama allies.

Government Motors Adds Another Lobbyist

[Originally posted at Beltway Confidential]

When bailed-out automaker General Motors went bankrupt, the company laid off most of its K Street lobbyists. When it came out of bankruptcy, although the majority owner was still the taxpayer, Government Motors lobbied back up, hiring top-shelf revolving-door veterans.

This week, GM discloses that it has hired -- on your dime -- another lobbyist, Lee Godown at Public Strategies, Inc. Godown reports he will lobby on "issues relating to restructuring; funding for technology, science and energy initiatives; taxation relating to employee benefits, alternative minimum tax and alternative simplified credit; and border trade, competitiveness and market access."

Godown was chief of staff to Rep. Loretta Sanchez, D-Calif., from 2000 until he cashed out in 2007.

Another Obama administration official cashes out to K Street Read more at the Washington Examiner

[Originally posted at Beltway Confidential]

Obama has made a big deal about not hiring lobbyists, and so we've made a big deal about shooting down his overblown rhetoric on this score (for instance, here's our spreadsheet of more than 40 ex-lobbyists in the administration). But the real problem, when it comes to potential impropriety and undue influence, is when government officials cash out to industry or K Street -- there's the risk that they were serving their future employers in their government job, and there's the unfair access it gives their private employer and clients.

Today, I learned of another Obama administration official to cash out to K Street: Grant Leslie of the Agriculture Department is now at Glover Park Group, (which has also just poached a Banking Committee staffer, as I blogged earlier). Here's the Glover Park Group's write-up on her Democratic bonafides:

[Grant] a leading Washington strategist, most recently a Senior Advisor to Secretary Tom Vilsack at the U.S. Department of Agriculture, has joined the firm as a Vice President in its Government Affairs practice.

While at the Department of Agriculture, Grant focused on energy, climate, and rural development issues while also overseeing the political nomination process for the Agency. She was an integral part of the Obama transition team, serving as the team leader for Secretary Vilsack’s confirmation in the Senate.

Prior to her engagement at the Department of Agriculture and Obama transition team, she worked in Senator Ken Salazar’s office for four years, most recently as his Legislative Director. Specifically, she was in charge of developing and overseeing the Senator’s entire legislative agenda as well as his Senate floor activities and also oversaw and coordinated the Senator’s actions on the Senate Committees on Agriculture, Nutrition, and Forestry; Energy and Natural Resources; and Finance.

Grant also served on the staff of former Senate Democratic Leader Tom Daschle (D-SD). As part of Senator Daschle’s legislative team, she focused on range of issues, including agriculture, rural development, trade and transportation.

Ken Salazar is now secretary of the Interior, and Daschle, famously, is a close confidant of the President. Vilsack, her old boss at Ag, was himself recently a K Street lobbyist.

Presuming Leslie, as a "Senior Advisor" to the Secretary, counts as an "appointee," she is prohibited by Obama's executive order from lobbying any senior executive branch officials.

The other Obama alumnus I've noticed on K Street is Oscar Ramirez who went from the Labor Department to the Podesta Group.

How the court's campaign finance ruling hurts Wall Street favorite Chuck Schumer

[Originally posted at Beltway Confidential]

Politico provided my favorite reaction to the Supreme Court's ruling today that Congress shall, in fact, make no law abridging the freedom of speech, even when it's called "reform":

Sen. Charles Schumer (D-N.Y.) "This activist and far reaching decision is even worse than we had feared. This opens the floodgates and allows special interest money to overflow our elections and undermine our democracy. The bottom line is, the Supreme Court has just predetermined the winners of next November’s election. It won’t be the Republican or the Democrats and it won't be the American people; it will be Corporate America."

This is entertaining -- and enlightening -- in the context of some numbers from OpenSecrets.org. Check this screen capture of the most active industries in the 2010 elections:

So, of the five most politically active industries (not counting "retired"), Schumer is the top recipient of campaign cash from three of those. You might say he's awash in "special interest money," and sniff some hypocrisy or political posturing here.

But Schumer does have a legitimate gripe. Until now, if corporations wanted to influence politics and policy, their ability to speak directly to politicians was limited by law. That meant they needed to make their case through indirect means, such as contributing to politicians -- mostly to Schumer, it seems. Or it meant paying big bucks to hire lobbyists from among the staffs of powerful lawmakers, such as:

> Carmencita Whonder, Schumer's former banking aide, now representing Fannie Mae, Merrill Lynch, the Private Equity council, Western Union
> Izzy Klein, Schumer's former press secretary now representing Bank of America, General Dynamics, Oracle, Tyco, National Association of Broadcasters
> Ipyana Critton, Schumer's former director of appropriations, now representing Deutsche Bank and Abyssian Development Corporation
> Or any of the other 9 former Schumer staffers now serving as registered lobbyists.

Now, set free of from Congress's speech regulations, non-profits and corporations might not rely so much on these indirect means of political influence. That means less campaign cash coming into Schumer, fewer corporations courting Schumer's staff, and less sucking up to Schumer by lobbyists.

Obama's pledges of open, clean government increasingly look like smoke and mirrors. My column explores the latest:

Mark Ernst, in December 2007, was chief executive officer of H&R Block, the nation's largest tax-preparation company. Thirteen months later, once President Obama took office, Ernst was named a deputy commissioner at the Internal Revenue Service, where he would spend his first year drafting new regulations for tax preparers -- regulations that H&R Block welcomes and market analysts say will benefit the company.

With Ernst in mind, recall Barack Obama's campaign pledge: "No political appointees in an Obama administration will be permitted to work on regulations or contracts directly and substantially related to their prior employer for two years."

Once Obama's target, lobbyist Tauzin now his pet

My Examiner column follows Obama's turnabout on Billy Tauzin:

White House visitor logs dumped late in the week between Christmas and New Year's Eve show that Billy Tauzin, the top lobbyist for the prescription drug industry and once a favorite target of Barack Obama, visited the White House at least 11 times in Obama's first six months in office.

Life insurers lobby to save the death tax

Is the estate tax debate really just about the wealthy resisting a tax hike? My column explains the real dynamic:

While senators debate health care, House Democrats have quietly moved to save the federal estate tax, scheduled to disappear next month. In this push to preserve the so-called "death tax," Democrats have an important K Street ally: The life insurance companies that peddle estate-planning products.

Obama’s revolving door and agri-chemical giants

The agri-chemical industry is one big winner in Obama's America. My column reports on recent developments on this front:

Most recently, Obama showed his agri-chemical colors with his nomination of Isi Siddiqui as the chief agricultural negotiator at the office of the U.S. Trade Representative. If confirmed, this would be Siddiqui’s second spin through the revolving door.

After 28 years at the California Department of Food and Agriculture, he entered the Clinton Administration. There he served in the Agricultural Marketing Service before spending four years as the senior trade advisor to Agriculture Secretary Dan Glickman.

Then Siddiqui cashed out. In 2002, he became a lobbyist for CropLife America, the lobbying group for pesticide and herbicide manufacturers.

Siddiqui avoids any clash with the executive order restricting lobbyists in Obama administration posts because he last registered as a lobbyist in 2004. Currently, however, he serves as CropLife’s “vice president for science and regulatory affairs.”

So, Siddiqui works for a lobbying organization as the VP in charge of “regulatory affairs,” but he isn’t registered as a lobbyist (meaning he supposedly spends less than 20 percent of his time talking to government officials), so he’s cool by Obama’s standards.

Pro-Obamacare Republicans in the pay of the health industry

Those pro-ObamaCare Republicans Obama lauds for their bipartianship -- turns out they're all in the pay of the health-care industry. My column reports:

Thompson, the former Republican governor of Wisconsin, served four years as President George W. Bush's HHS chief. Now Thompson is a health care consultant at the lobbying firm Akin Gump, whose clients include insurer Aetna, many drug makers, device makers and hospitals....

Sullivan was George H.W. Bush's HHS secretary in the 1990s. In 2008, Sullivan made $220,000 as a director for four health care companies, including the biotech firm Biosante Pharmaceuticals, where he was chairman of the board, according to Forbes. His total 2008 compensation from these companies (with options and other non-cash compensation) was more than $1 million. He has recently served as a director at Bristol-Myers Squibb and Cigna....

Frist is a partner in a private investment firm that bets on health care companies -- and on regulation. The firm's Web site reads: "With deep expertise in the healthcare reimbursement and regulatory environments, the Cressey & Company team has invested in almost every for-profit niche of healthcare."...

And Dole, as this column discussed last Friday, is a health care lobbyist for the downtown firm Alston & Bird, which represents drug makers and insurers.

Carney on Tauzin

Today's Washington Examiner contains a profile on Billy Tauzin, written by yours truly.

The main item is headlined "Billy Tauzin: K Street's Drug Kingpin." The package includes a "biofile" titled "From the Bayou to K Street by Way of Congress." There's also a sidebar, "Revolving door or God's gift?"