Bank lobbyist "takeover" in Washington: report

The six largest U.S. banks - Bank of America, Citigroup, JPMorgan, Wells Fargo,

Goldman Sachs, and Morgan Stanley - and their lobbyists and pressure groups have hired hundreds of Democratic and Republican congressional staffers, and spent more than $200 million last year alone, largely to block bank reform measures in Congress, according to a new report, Big Bank Takeover, at http://ourfuture.org/bigbanktakeover

The report identifies former Congressmen of both parties and more than 200 former Congressional staffers, plus former SEC and Treasury staff, who now lobby for the banks, their industry groups and lobbying firms. The group includes top aides to Democratic Sens. Chris Dodd, D-Conn., and Tom Carper, D-Del., and Rep. Nancy Pelosi, D-Calif., as well as Sen. Richard Shelby, R-Ala., among others, who are now paid to press pro-bank legislation.

"Joining the big bank lobby is a way to secure their family fortunes," said Bob Borosarge, co-director of the union-backed Campaign for America's Future, which financed the report, which was writen by Kevin Connor, co-director of the Public Accountability Initiative and founder of the blog.littlesis.org Web site. Connor called the result "a historic assault on the political system" by banks "even as they have scored $160 billion in taxpayer handouts."

Borosarge said the group isn't backing specific proposals to end what he called the "revolving door" between government and banks. (He applauded a call by US Rep. Barney Frank, D-Mass, to make it tougher for aides to go to work as lobbyists - though the report also quotes Frank denying bank influence is a problem.)

Rather, the groups are pushing to prevent "backroom deals" as financial reform legislation speeds through Congress, Borosarge added.

Won't tough bank restrictions Wall Street and the U.S. financial economy? "People are questioning the notion that Wall Street creates jobs. We need investmen in the real economy," said Stephen Lerner, of the Service Employees' International Union. He promised street protests in Washington and other cities to press banks to stop fighting reform.

Andrew DeSouza, spokesman for the Securities Industry and Financial Markets Association, the highest-spending of the industry "trade groups" listed in the report, told me SIFMA declined to comment.

The report names 49 "lobbyists for Citigroup" who had formerly served in Congress (Sens. John Breaux, D-La., and Trent Lott, R-Miss.), or worked for Congress and government agencies. Responds Citi spokeswoman Molly Millerwise Meiners: "The number of internal and external consultants employed by Citigroup has consistently trended downward since the beginning of 2009.  As of the lobbying disclosure report filed in the first quarter of 2010, Citi has a total of 37 in-house and outside consultants on staff.

"We have an obligation to our employees, shareholders and customers to advocate our positions to policy makers. ... Citigroup supports modernizing financial regulations to ensure a strong global financial system that fosters economic growth and provides financial services and security to the American people."