Moments ago, the House of Representatives defeated an amendment by Rep. Mel Watt (D-N.C.) to slash 40% of the funding for the Office of Congressional Ethics, the House's independent ethics watchdog. However, more than a hundred congressman -- including 73 Republicans and 29 Democrats -- voted to weaken the agency -- with many more changing their vote before the final count was tallied. The amendment was offered to the Legislative Branch Appropriations Bill, which is expected to pass the House later today.

Today's attempt to reduce funding for OCE, combined with previous efforts to eliminate the agency, may be an example of a not-too-subtle message from certain members of Congress that the agency should refrain from being too vigorous in its investigations. In other words, OCE is having an effect in deterring and identifying misconduct. That's all the more reason to strengthen the agency.

OCE provides some much-needed transparency to the ethics process, and gives members of the public the opportunity to suggest matters for consideration. It is also intended as a palliative to the often politicized House Ethics Committee and the cloud of controversy that often follows the Ethics Committee's actions.

The Office of Congressional Ethics was created after a number of scandals to provide an independent, nonpartisan review of allegations of misconduct against Members, offices, and staff. It should be strengthened, with more funding and enhanced powers.

Update #2: We'll shortly publish a blogpost exploring connections between Members investigated by OCE and Members votes on cuts to OCE

Update #1: here's the roll call vote (from the House)

Final Vote Results for Roll Call 622

Less than an hour ago, the House of Representatives turned back an attempt by Rep. Mel Watt (D-NC) to slash funding for the Office of Congressional Ethics by 40%, but Congress's independent watchdog is still in great danger. Rep. Watt has demanded a recorded vote -- also known as a roll call vote -- which will take place no earlier than 9am Friday morning when the House reconvenes. (Update: votes will likely take place between 10-11:30am). At that time, Mr. Watt and other enemies of the OCE -- some of whom are opponents of the accountability it provides -- will be able to launch another attack when members of the House vote again on amendments to the 2012 Legislative Branch Appropriations Act.

Democratic leaders who created OCE in the last Congress and Republican leaders who wisely acted to ratify its existence this Congress should rally supporters of ethical government to defeat Mr. Watt's efforts proposal. If anything, OCE's budget should be increased and its powers strengthened.  A strong Office of Congressional Ethics is a prerequisite for an open and accountable House of Representatives.

Four key lawmakers on the financial reform conference committee are seeking to create loopholes in the so-called Volcker Rule and the derivatives section of the bill, according to Talking Points Memo.

The four lawmakers are Reps. Luis Gutierrez, Greg Meeks, Dennis Moore and Mel Watt. They have received a combined $5.5 million from the finance, insurance and real estate sector (FIRE) over their careers. All but Gutierrez received over 20% of their total career campaign contributions from the finance, insurance and real estate sector making them heavily reliant on the industry to fund their campaigns. Gutierrez received 19% of his contributions from the finance sector.

The loopholes that would be created are being suggested in a letter sent by the 68 members of the New Democrat Coalition, a group of moderate Democrats who have opposed many of the tougher regulations proposed for derivatives trading. TPM obtained a draft of the letter, which can be viewed here.

Meeks and Moore are both members of the New Democrat Coalition.  The Hill reported earlier this week that the New Democrats are drafting a letter urging the conference committee to drop a provision proposed by Sen. Blanche Lincoln requiring banks to spin off their derivatives trading desks into separate units.

During debate in the House over financial reform in 2009 the New Democrats played a key role in exempting a wide-swath of end-users from derivatives trading oversight and limiting the number of trades that will occur on an open clearinghouse.

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.