The regulatory agencies that will create hundreds of new rules for the nation's banks will face a lobbying blitz from companies intent on softening the blow-and many of the lobbyists will be former regulators.
According to an assessment performed by the Davis Polk law firm, federal agencies will decide the details and implementation of at least 243 financial rules.
“The headhunters are out in force” to recruit former government regulators as lawyers and lobbyists, Lawrence Kaplan, who was a senior lawyer at the government’s Office of Thrift Supervision and now works on banking regulation at a Washington law firm, told the New York Times.
“I get calls practically every day,” Kaplan says. “You want people who know what they’re doing, and the government background builds your bona fides.”
“It’s a credential that you flaunt.”
Nearly 150 lobbyists registered since last year formerly worked at financial agencies in the executive branch of federal government. Their jobs ranged from attorneys for the Securities and Exchange Commission to Federal Reserve bankers, according to data analyzed for The New York Times by researchers at the nonpartisan Center for Responsive Politics.
The Center’s for analysis showed that nearly 500 officials have moved between working for government financial agencies and the private sector. Of that number, 148 former regulatory officials were registered to lobby the government last year or this year, representing virtually every regulatory agency.
The Washington Post reports that US investigators are now conducting a criminal probe into whether ties between BP and federal regulators contributed to the Gulf oil spill.
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