Four longtime senators recently announced their retirements from the Senate effective at the end of 2012. This could send ripples through K Street as a number of lobbyists will lose the chief contact they had to Capitol Hill, their former boss. Sens. Jon Kyl, Joe Lieberman, Kent Conrad, and Kay Bailey Hutchison have a combined 51 former staffers turned lobbyists who may see their bottom line suffer when their former boss steps down.

A recent study from the Centre for Economic Performance showed that a lobbyist who previously worked for a senior senator takes an average revenue loss of 24 percent when their former boss leaves office. Those who worked for junior senators saw negligible revenue loss when their former boss left office. The study also found that former staffers who worked for senators with positions on the most powerful committees, Appropriations and Finance, suffered even bigger losses in revenue with the departure of their former boss.

Three of the four departing senators, Conrad, Lieberman, and Hutchison, were the senior senators for their state. Three also held seats on the key committees, Conrad and Kyl on Finance and Hutchison on Appropriations. Additional important posts include Kyl’s post as Republican Minority Whip and Lieberman’s chairmanship of Homeland Security & Government Reform.

Some of the former staffers turned lobbyists for these departing senators may avoid this expected loss in revenue due to previous work in other government jobs or due to their departure from the soon-to-be former senators occurring decades ago. Others who left Congress for K Street more recently are likely to take a hit.

One lobbyist exemplifying the imminent loss in revenue would be Alberto Cardenas of the firm Vinson & Elkins. Cardenas worked for Sen. Kay Bailey Hutchison from 2005 to 2009. Most of Cardenas’ clients are local Texas entities, the Greater Houston Partnership or the Texas Public Hospital Coalition, seeking government contracts that Sen. Hutchison could provide from her perch on the Appropriations Committee.

Former staffers for Sen. Kent Conrad have a number of clients with interests directly related to the senator’s position on the Finance Committee. Robert Van Heuvelen runs his own lobbying firm and boasts a series of clients from the health and energy sectors, both of which sought to influence the Finance Committee’s work on health care reform and climate change legislation. Van Heuvelen also employs former Conrad staffer Anissa Rogness. Another former Conrad staffer, Lindsey Toohey, held a cross-section of important health care organizations as clients in 2010. With Conrad’s departure from the Senate, these lobbyists could see their stature fall in the coming years.

Sen. Joe Lieberman has long been known as a friend to the defense industry and a few of his former staffers turned lobbyists may suffer because of it. Both Steve Sutton and Fred Downey work in the aerospace industry with Sutton representing Northrop Grumman and Downey representing the Aerospace Industries Association of America.

These lobbyists may be looking at a break-up season with some of their clients in the near future. Lobbying clients are always looking for the relevant connections in the resume of their hired guns. Those with used-up connections are free to leave on the sidelines.

Since the end of July the Senate Finance Committee has been the focus of health care reform discussions. More specifically, the bipartisan "Gang of Six," organized by Sen. Max Baucus, has been working to formulate a health care compromise that some Republicans may be able to support. An analysis of voting agreement between the six senators involved in these discussions shows the likely futility of this effort as only one Republican shares similar voting patterns with the majority Democrats.

Sen. Olympia Snowe (subject of a voting agreement analysis here) is the only Republican in the "Gang of Six" with a substantial voting agreement with the Democrats involved. Snowe's agreement with the three Democrats, Sens. Baucus, Jeff Bingaman and Kent Conrad, is above 60% for all three, but below 60% for the other two Republicans, Sens. Mike Enzi and Chuck Grassley. This continues to underline the key role that Snowe can play in the health care reform plan's final structure.

Neither Grassley nor Enzi shares much in voting agreement with the Democrats in the "Gang". They both have voting agreements of 35% or less with the three Democrats. The lowest voting agreement for both is with Sen. Bingaman (23.4% for Enzi, 25.8% for Grassley).

Recently, Democrats have focused on only attracting one or two Republicans, Snowe being the highest target, to vote for the bill rather than pursuing the strategy that Baucus sought with the "Gang of Six" talks. These voting agreement numbers show that, aside from Sen. Snowe, the "Gang of Six" is intensely polarized in their voting patterns. The likelihood of bipartisan compromise was unlikely from the start of this process.

The above graphic was created using the New York Times Congress API and based on Nodebox code from Juice Analytics.

The Senate Ethics Committee released two letters (Dodd, Conrad) today clearing Sens. Chris Dodd and Kent Conrad of ethics violations in a case where both senators were members of a Countrywide "VIP" loan program. These letters concluded a year-long investigation into the "VIP" program and the loans the senators received.

The Committee found that the two senators did not violate Senate ethics rules prohibiting members from accepting outside gifts. The rule in question does not cover "loans from banks and other financial institutions on terms generally available to the public." The committee also ruled that while the "VIP" loans did offer "quicker, more efficient loan processing and some discounts," the discounts provided "were not the best deals that were available at Countrywide or in the marketplace at large."

The senators did receive a chiding for not exhibiting care in their dealings with Countrywide. The Committee told both senators that they "should have excercised more vigilance in [their] dealings with Countrywide in order to avoid the appearance that [they] were receiving preferential treatment based on [their] status as Senator[s]."

In response to the investigation that Committee declared that it should have issued guidance on the receipt of loans and the involvement of senators in special loan programs. The Committee expects to issue a guidance to members in the future.

The organization that filed the initial ethics complaint, Citizens for Responsibility and Ethics in Washington (CREW), stated in a blog post that this amounts to "battered wife" syndrome.

"Like a battered woman who explains she brought the beating on herself, the committee faulted itself for failing to ‘provide more guidance to the Senate community about issues surrounding mortgage negotiations.’ Over a year has passed since CREW filed its complaint and the committee became aware of this issue. Now would be a good time for the committee to start proactively providing its promised advice.”

The Ethics Committee could also review legislation that has been introduced requiring limited disclosure of home loan information on personal financial disclosure forms (S. 1632).

Local county commissioners in the district of Indiana Rep. Mike Pence passed a resolution requesting that the congressman end his ban on earmarks. The President of Ball State University is also supporting the call for Pence to accept earmarks.

Rep. Darrell Issa is seeking more information on Countrywide's VIP mortgage deals with lawmakers and political figures like Sens. Chris Dodd and Kent Conrad. Issa is trying to obtain eight years worth of documents relating to the "Friends of Angelo" program. Angelo Mozilo, the CEO of Countrywide, is currently facing multiple indictments brought by the federal government.

The trial of former Rep. William Jefferson is finally getting under way. In case you forgot, Jefferson was caught with $90,000 in cash in his freezer.

And over at Party Time, Nancy Watzman has a post on how a little sunlight can make lawmakers rethink how they fundraise. A common practice in fundraising letters is to list the committee memberships of the lawmaker raising money. For a fundraiser to aid Sen. Dianne Feinstein, Democratic lobbyist Heather Podesta went a little over the line in her solicitation, aligning amounts of money with the committees Feinstein sits on. Feinstein wound up cancelling the fundraiser due to the appearance of impropriety.

Now that it is official that the Feds are investigating Countrywide's "VIP" home loan program, it's time to revisit one of the key problems in disclosure that abetted the hiding of these loans. Since every member of Congress is required to file an annual personal financial disclosure report it would seem as though the public would have the ability to know which lawmakers received loans from which mortgage company and at what rate. Unfortunately, personal financial disclosures do not require lawmakers to list private residences or any home that does not generate income (ie: rent).

This is a problem with an easy solution. Earlier this year, numerous lawmakers, including Rep. Mark Souder and members of the Senate Ethics Committee, introduced bills to require limited, but adequate, disclosure of personal residences. Now that this issue is back in the headlines Congress should move quickly to address future concerns and tackle the myriad other problems with the personal financial disclosure forms.

The Sunlight Foundation's Executive Director Ellen Miller had an op-ed in Roll Call (sub. req'd) earlier this year that addressed the failings of the personal financial disclosure:

...Congress must make personal financial disclosures more transparent and accurate. All of the manners in which lawmakers obscure their finances must be eliminated. Exact dollar figures must replace ranges. Loopholes for residences that do not generate income should be closed. Lawmakers must reveal how much stock they own, show who they are doing business with when engaged in a partnership, and list property in a more transparent manner. Personal financial disclosure reports must live up to the desire of Congressional leaders to operate in an open and honest manner.

An investigation begins into the Friends of Angelo. Stevens' conviction prompts reform group push. Some people don't like transparency. That and more in today's news:

"Friends of Angelo" beware! The FBI is investigating the "VIP" home loan program for public officials operated by Countrywide. Countrywide chief Angelo Mozilo made sure that public officials who could be influential in matters relating to his business received "VIP" rates on interest rates and loan fees. Sen. Chris Dodd and Sen. Kent Conrad both received "VIP" loans from Mozilo's Countrywide. They are currently both cooperating with a Senate Ethics Committee investigation. The operator of the "VIP" program Robert Feinberg spoke to federal investigators noting, "he's not aware of any discounts linked to favors, but he did see e-mails noting the potential value of the relationships to Countrywide's political and business interests." Both Conrad and Dodd stated that they did not know that a "VIP" program would provide them with special perks and savings. Feinberg, however, responds, "nine times out of ten, once you mention 'V.I.P' the person's gonna ask you 'what am i getting for being in this V.I.P department?' Or 'what am I getting because I know Angelo?' Or 'I talked to Angelo and he said I'm getting this.'"

Sen. Ted Stevens faced a welcome reception among fellow Republicans in Alaska as he denounced the "corrupt prosecutors" who successfully won seven convictions against the seven-term senator. Back in Washington, reform groups are organizing to pressure the Senate to create an independent body, working in conjunction with the Senate Ethics Committee, to oversee ethics complaints. The House approved an independent oversight board this year. The ethics committees in both chambers have taken flack for failing to properly police their members. While the ethics process has, since the eighties, primarily been used as a partisan tool, the system completely shut down after former Majority Leader Tom DeLay was reprimanded multiple times for various abuses of House rules.

Some dare call it transparency. The Aspen Times reports on local political donors who are uneasy about the availability of campaign contribution information online. Most of these individuals did not know that their contributions would be part of the public record and are upset that Google searches for their name turn up their political contributions. Involvement in the activities of public figures, particularly the financing of them, requires disclosure to ensure an open and honest system of governance. There is no reason to fear Big Transparency.

If you're paying attention to the presidential campaign and checking polls every half-hour you may want to check a decent predictor of the outcome, lobbyist shuffling on K Street. Comcast recently fired their Republican lobbyist Kerry Knott, a former Dick Armey aide, and replaced him with Melissa Maxfield, a former aide to former Sen. Tom Daschle. Daschle is, of course, a top aide to Sen. Barack Obama and noted as a potential White House Chief of Staff or cabinet secretary, in the case that Obama wins the Nov. 4 election. Companies are already girding up for future battles by taking on lobbyists who would have influence in a potential Obama administration.

So, the indictment is in and the charges against Sen. Ted Stevens include seven counts of making false statements on his personal financial disclosure forms from 1999-2006. Many of these false statement counts revolve around work done on Stevens' Girdwood, AK home courtesy of the VECO oil company. Sunlight's Bill Allison makes the case at Real Time Investigations that if the money spent on equipment, parts, and labor did not constitute a gift, but rather a loan, then Stevens would be allowed to omit them from his disclosure forms, thereby acquitting him of several false statement charges:

[F]rom my quick read of the indictment, it appears that the government is suggesting that when Stevens says he has no liabilities of more than $10,000, that means the hundreds of thousands of dollars Stevens is alleged to have received as benefits from VECO couldn’t possibly have been loans. But if (and for the record, I doubt this is likely), if Stevens was borrowing money, labor and materials to renovate a residence from VECO rather than accepting it as a gift, I’m not sure Stevens would have to report it under current personal financial disclosure rules, which say,

property which is held or maintained solely for recreational or personal purposes does not have to be reported…. (p. 131)

and

Mortgages secured by a personal residence (including secondary residences) that are not used for rental purposes do not have to be disclosed. (p. 136)

Suppose there was some understanding Stevens would repay Veco or its CEO, Bill Allen, for the home repairs, the car swap, the furniture and so on — shouldn’t the public know of those potential conflicts of interest? The indictment reminds us,

The primary purpose of the yearly Financial Disclosure Forms is to disclose, monitor and deter conflicts of interest, thereby maintaining public confidence in the integrity of the United States Senate and its Members. Because the yearly Financial Disclosure Forms require public disclosure of financial information by each Member of the United States Senate, such as income, assets, gifts, financial interests, and liabilities, the Forms provide the public at large, including the voters of a particular state, with the information necessary to allow the public to evaluate and consider official conduct by a Member of the United States Senate in light of that Member’s private finances.

Do the current disclosure requirements adequately “deter conflicts of interest, thereby maintaining public confidence in the integrity of the United States Senate and its Members,” if they exempt personal residences, mortgages, car loans and so on from public view?

As Bill says, it is highly unlikely that these were loans and not gifts. One would have to assume that the cooperating witness identified in the indictment, VECO CEO Bill Allen, provided enough information to prove that there was no intention of repayment. Also, as I previously noted in the previous blog post, paragraph 17 of the indictment suggests (although the DOJ insistently declared that it does not allege) a possibility of quid pro quo:

17. It was a part of the scheme that STEVENS, while during that same time period that he was concealing his continuing receipt of things of value from ALLEN and VECO from 1999 to 2006, received and accepted solicitations for multiple official actions from ALLEN and other VECO employees, and knowing that STEVENS could and did use his official position and his office on behalf of VECO during that same time period. These solicitations for official action, some of which were made directly to STEVENS, included the following topics: (a) funding requests and other assistance with certain international VECO projects and partnerships, including those in Pakistan and Russia; (b) requests for multiple federal grants and contracts to benefit VECO, its subsidiaries, and its business partners, including grants from the National Science Foundation to a VECO subsidiary; and (c) assistance on both federal and state issues in connection with the effort to construct a natural gas pipeline from Alaska’s North Slope Region.

There is likely more information yet to be revealed, as the DOJ stated the investigation is ongoing, that would prove that these gifts and not loans.

Returning to Bill's chief point, there is a clear loop hole exposed in the system of conflict of interest disclosure. The personal financial disclosure documents are important in the revelation of conflicts of interest and ought to reveal all conflicts that lawmakers hold. In recent months and weeks, the number of stories highlighting conflicts that arise from the ownership of personal homes is putting a spotlight on the need for greater disclosure.

Sens. Chris Dodd and Kent Conrad received favorable mortgages on homes from Countrywide. Only Conrad disclosed his mortgage and home on his personal financial disclosure form. Rep. Laura Richardson defaulted on numerous mortgages which should have been disclosed but were not. And today it was reported that Rep. Joe Knollenberg undervalued his D.C. residence on more than one financial disclosure.

After considering these cases, most egregiously the case of Sen. Stevens, I'll let you comment on Bill's final question:

Do the current disclosure requirements adequately “deter conflicts of interest, thereby maintaining public confidence in the integrity of the United States Senate and its Members,” if they exempt personal residences, mortgages, car loans and so on from public view?

The Pfizer-General Motors-Northwest Airlines-United-Coors Democratic and Republican conventions are looking for more sponsors; Dodd doesn't understand acronyms; sometimes it's not really disclosure; bad campaign donations; ethics complaints; angry foreigners; and our favorite frozen food fan, William Jefferson. Only the Sunlight Foundation sponsors this news:

The next big moment in the 2008 Presidential election will be the late-summer nominating conventions where a carefully staged and scripted performance will be fueled by large corporate donations despite the reformer images presented by the two nominees. Participants can expect discounted plane tickets, free cars, hot parties, and lobbyists, lobbyists, lobbyists. The inverse of AA, sponsors don't help you with your problem, they make it worse. Both convention organizing committees have released documents to leading corporate fundraisers informing them that certain levels of contributions will lead to access to elected officials. The Republican convention packet explains to donors that they will be able to "connect with influential government officials (cabinet, president, next president)." The Democratic convention produced a "corporate sponsorship package" that gets you into events with Colorado Gov. Bill Ritter, Sen. Ken Salazar, among others. To his credit, Democratic nominee Barack Obama wants to change the corporate funding model for conventions.

Sen. Chris Dodd claims that he did nothing wrong when he received a preferential mortgage from Countrywide Financial because he did not know that the VIP program meant he would be treated with preference. I can't decide if this makes Sen. Chris Dodd totally out of touch or totally in touch with the average American. Sen. Kent Conrad continues to defend his name, stating that he received preferential treatment unknowingly. Conrad has donated the estimated amount of money he saved from the treatment to charity.

Speaking of congressional mortgages and homes, you won't always find them on the personal financial disclosures that lawmakers are required to file. Why? Because lawmakers don't have to list personal residences that don't create rental income. The Politico writes, "They don’t have to disclose loan amounts. They don’t have to disclose loan rates. And they don’t have to disclose mortgage lenders." Sen. John Cornyn, ranking Ethics Committee member, states that he would like to see changes in personal financial disclosure forms.

Rep. Mary Bono Mack is being asked about campaign contributions from Inland Empire businessmen currently under investigation for contributions to state-level California politicians.

CREW files an ethics complaint against "dead-beat congresswoman" Laura Richardson.

Foreign companies that own U.S.-based subsidiaries are fighting back against proposed transparency reforms by Sen. Chuck Schumer to close loopholes in the Foreign Agents Registration Act.

The federal grant at the center of the indictment of family members of Rep. William Jefferson began as an earmark inserted at the last minute into an appropriations bill. In an unsurprising turn of events, no lawmaker has taken credit for the earmark.

Congressional Quarterly reports that the Senate Ethics Committee is looking into the preferential loan treatment that Sens. Chris Dodd and Kent Conrad received from Countrywide Financial.

Senate Budget Committee Chairman Kent Conrad said Tuesday that the Ethics Committee is examining mortgages he received in 2004 from Countrywide Financial.

“I’m talking to the Ethics Committee,” said Conrad, D-N.D., who, along with Banking Chairman Christopher J. Dodd of Connecticut, has been identified in published reports as being among a group of six current and former officials given unusually favorable mortgage deals from Countrywide.

The committee investigation looks to be spurred by both a complaint filed by CREW - yes, the Senate actually accepts outside complaints - and the doggedness of Sen. Conrad to clear his name. It is clear from the article that Conrad is the one making sure the media knows that the tight-lipped Ethics Committee is investigating his loan.

Sen. Kent Conrad's mea culpa; 2008 Beijing Olympics received a helping hand from the Hammer; and Rep. James Clyburn's family friendly earmarks.

Kent Conrad sought to assuage critics as more information was revealed about preferential loans he and Sen. Chris Dodd received from Countrywide Financial. The Washington Post reported on Saturday that Conrad, after receiving Countrywide CEO Angelo Mozilo's phone number from ex-Veep vetter Jim Johnson, called Mozilo to directly ask for a loan. How could you not expect preferential treatment when your loan officer is the CEO? In response to the continued criticism and coverage, Conrad declared that he would refinance his loan and donate the estimated amount he saved - $10,500 - to Habitat for Humanity. Conrad has also called on the Senate Ethics Committee to investigate both his and Sen. Dodd's mortgages.

In 2001, Tom DeLay was at the height of power in Republican politics, cutting deals with energy interests, Jack Abramoff, and countless others. DeLay also happened to work with a major Republican contributor in his dealings with the popular conservative bugaboo of 2001: China. During court proceedings into Republican contributor Sheldon Adelson's bid to build casinos in Macau, the billionaire casino mogul revealed that he personally called up then-Majority Leader Tom DeLay to ask him to kill a House measure opposing the awarding of the 2008 Olympics to Beijing as it would help him secure Chinese support for his business venture. DeLay, a cosponsor of the anti-Beijing resolution, consulted with other Republican leaders before telling Adelson he needn't worry about the measure. Days before the International Olympic Committee was to vote on the host city for the 2008 Olympics, the measure disappeared from the House agenda. Adelson subsequently won support from the Chinese government, which intervened to help his bid in Macau at least twice, and Beijing won the 2008 Olympics.

Rep. James Clyburn of South Carolina is found to be earmarking money to projects that employ at least four of his family members and to other projects run by or employing former staffers.

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