GAPING HOLES IN RULES GOVERNING Washington’s REVOLVING DOOR

WE NEED “A LEAVE AND GO HOME” POLICY!

Larry Lavender (R), Aide to House Financial Services Committee, Rep Spencer Bacchus (R-AL) left to a law firm representing JPM in early 2012 = Stayed close to Bacchus as an unpaid campaign manager for the congressman’s re-election bid – Claims he did not seek out any official favors or actions for JPM. But Lavender joined a behind-the-scenes effort to help JPM avoid testifying in 2012 MF Global House hearing. Lavender took aim at the former colleagues who wanted to force JPM executives to testify =  “I should have fired them when I had the chance.”

GOP TOP AIDE from Arizona promoted a law to overhaul the nation’s home mortgage finance system and in weeks lobbied for a company poised to capitalize on the plan.

Former DEM Counsel on the House Financial Services Committee left and MONTHS later lobbied  that committee for JPM and BLOOMBERG LP.

GOP  chief of staff to House Financial Services Committee left in January 2012, but  managed his boss’s re-election campaign and lobbied for financial industry clients.

Erik Olson’s (D) salary fell below $130,500 CAP as chief of staff to Rep Kind (D-WI) left and lobbied Congress for Lepton Foods to shape the Farm Bill – Kind was involved in.

Matthew Tully (R), aide to Schweikert (R-AZ)  at $128,000 (below cap) helped revamp Law for home mortgages PRIVATIZING insurance of loans became the only internal lobbyist for a Pennsylvania-based private mortgage insurer, Essent Guaranty, one day after leaving the House and was free to communicate with the staff in his former boss’s office and attended a House hearing on housing legislation.

Dee Buchanan (R) Aide for Henserling (R-TX) earned $170,000+  used a different exemption leaving to LOBBY for Ogilvy Government Relations to help American Bankers Association and the CME Group, futures exchange = Free to immediately lobby most members of Mr. Hensarling’s committee because his government paycheck had come from the House Republican Conference.

John Hughes (D) left Rep Steny Hoyer (D-MD) House Financial Services Committee, and lobbied for JPM and Bloomberg LP = Loophole pay came from House Democratic leadership.

2007 NEW Ethics Rules = 1,650 Aides still registered to lobby within a year of leaving and faced no restrictions at all.

HOUSE RULES = particularly loose and enjoy significant leeway in hopping job to job for 6 and 7 FIGURES = seized on loopholes to lobby within one year.

Some aides resist pay raises = Keep salaries below the cutoff for lobbying restrictions.

Highly paid House aides paid by individual lawmaker or leadership office = NO LIMITS

Former House aides continue socializing with lawmakers + work on campaigns + attend committee hearings while representing private clients as a lobbyist = a clubby culture to protect Wall Street and other industries from rules and laws.

Protests by Rep. John Conyers, Democrat of Michigan, and Rep Lamar Smith, Republican of Texas = WATERED DOWN 2-YEAR LIMITS ON LOBBYING with loopholes.

“Is it any wonder that the public holds such a low esteem for Congress? You can dance around these rules in so many ways it really does not accomplish much of anything.”

— Joel M Henley (R), served as chairman of the House Ethics Committee

SURGE of congressional AIDES to K Street = 44% of Registered lobbyists in 2012 = UP 18% from 1998

Salary loophole $130,500 = Most popular TRICK

Former Senate staff member-turned-lobbyist said she knowingly kept down her pay to be free to immediately lobby at some members of Senate for mortgage company

“It is almost a meaningless ban.”

— Craig Holman, nonprofit group Public Citizens – Allows former aides to “ineract socially” with former bosses or Capitol Hill colleagues at dinner parties and golf games = work behind the scenes.