Sunlight Foundation

Revolving Door Spinning: Delahunt, Boyd, Herseth Sandlin & More

--Prime Policy has hired former Massachusetts Rep. Bill Delahunt as a lobbyist to work "advising American companies on strategic opportunities to establish themselves in foreign countries, and in providing foreign businesses with a trustworthy and established connection to the American marketplace." Delahunt's work as Chairman of the Foreign Affairs Subcommittee on Europe will no doubt help his work in attracting clients for the firm. The former congressman was previously involved in attracting foreign business for his state when he helped pave the way for a deal between the Venezuelan government of Hugo Chavez to provide low cost heating oil to low-income Massachusetts residents.

--Another Blue Dog is moving to K Street. Former Florida Rep. Allen Boyd has signed up with 21st Century Group. Boyd's appropriations experience should help him find clients seeking to protect their part of the federal pie in these times of austerity.

--Former South Dakota Rep. Stephanie Herseth Sandlin is in talks to join Olsson Frank Weeda, a law and lobbying firm in Washington. The firm boasts an array of clients from the oil & gas industries to agribusiness and pharmaceuticals. Herseth's pro-business background as a Blue Dog Democrat makes her a perfect fit for a K Street firm. This, however, would make it far less likely that she would run to retake her seat in the 2012 elections. Her husband already works as a lobbyist for the firm Mercury.

--The Podseta Group has signed the chief of staff for Sen. Lamar Alexander as a Principal. David Morgenstern worked from 2005 to now as Alexander's chief of staff. Alexander holds a prominent position in the Republican Party as the Chairman of the Republican Senate Conference. He is currently running to replace retiring Sen. Jon Kyl as Republican Whip. The press release notes, "[Morgenstern's] expertise is particularly important as the Senate considers game-changing legislation in energy, transportation and education."

--With all the discussion around offshore tax shelters and corporate tax reform it should be expected that K Street firms will seek out fresh talent from relevant congressional committees. K&L Gates recently hired Mary Burke Baker from the Senate Finance Committee. Baker worked as an IRS Detailee to the committee from 2005 to now with a portfolio covering "international tax issues, the proposed bank tax, Foreign Bank and Financial Accounts (FBAR) reporting, IRS oversight, and tax administration." Her work at the committee also included the tax provisions in the major legislation of the 110th and 111th Congresses including health care reform, the stimulus, and the bailout. She previously worked for the IRS managing the Office of Tax Shelter Analysis.

Tough Day for Credit Card Companies

It's a tough day for the credit card industry. In spite of all the lobbying spending ($9,170,573 in 2009) and all those campaign contributions ($7,367,066 in 2008), they couldn't prevent a landslide loss in Washington. Today, the Senate approved a bill to place regulations on the credit card industry for the first time in decades by a vote of 90-5. The House approved the bill last week by a lopsided 357-70 margin.

There are very few measures in influence when looking at such a lopsided victory, particularly on what would once have been an uphill battle against the credit lobby. All three lawmakers representing Delaware, that little slice of bank heaven, voted for final passage of the bill. The only ones staying true to their contributors and constituents were the three South Dakotans in Congress.

South Dakota is a special case. What peaches are to Georgia, credit cards are to South Dakota. (Watch this PBS Frontline report for the full history.) Rep. Stephanie Herseth Sandlin and Sen. Tim Johnson, both of South Dakota, were the only two Democrats to oppose the bill. Johnson received $349,800 from finance and credit companies over the course of his career, with nearly half of that ($154,350) coming from 2007-2008. Herseth Sandlin has not received a significant amount of money from the credit card companies. I'm sure she received enough phone calls from credit card employees in her state to convince her though.

Despite the epic loss for the industry, the credit cards did have a few important victories. According to CBS News, "the American Financial Services Association urged all U.S. senators to oppose all rate caps and so far they have been successful." So, there's that.

All in all, a tough day for a big time lobbying player. As a holder credit card debt myself, I can assure that Americans don't share their grief. When credit card lobbyist Bill Himpler says, "To our critics? You know, I’m not going to say anything," it's because he knows better than to say anything at all.