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Lee Fang | The Nation

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Lee Fang

Lee Fang

Investigating the intersection of politics, lobbying and public policy.

Romney Adviser Leads a New Effort to Channel Millions of Undisclosed Bank Money Into the Election

The leaders of the American Bankers Association, which represents thousands of banks, just voted today to create an undisclosed legal entity to channel millions of corporate dollars into federal elections this year. Though few details have been released on how the ABA will direct the money, other than comments to the press that it will be used to support the pro–bank industry candidates, the Romney-Ryan campaign may see some benefit.

The ABA’s president, Frank Keating, is a prominent supporter of the Romney campaign. After serving as governor of Oklahoma, Keating retired from public service to become a bank lobbyist.

Keating has been featured as a financial services policy adviser to the candidate during fundraisers for the Romney campaign. He is among several chiefs of trade associations, like the American Petroleum Institute’s Jack Gerard, to align with the Romney campaign this year.

This new ABA secret-money effort represents a major shift for the group that is possible only because of the Citizens United decision. Before the Supreme Court moved to allow unlimited corporate spending in the election, trade associations like the ABA could participate in federal elections only by creating transparent political action committees that could accept only limited, individual donations.

Now the sky is the limit. ABA’s embrace of the 501(c) loophole allows them to make of their electioneering efforts completely secret. (Previous ABA PAC spending can be found here.)

The ABA’s board, which will determine how to spend the newly established corporate money fund, is made up of executives from Wells Fargo, JPMorgan Chase, Citizens National Bank and BB&T Corporation, among others.

ABA’s lobbyists have indicated that they are seeking to weaken key elements of the Dodd-Frank Wall Street reform bill signed into law by President Obama in 2010.

“I think the ABA ought to be ashamed of itself,” said Representative Barney Frank, the principle author of financial reform, in an interview with the Charlotte Observer at the Democratic convention last night.

As I reported recently for The Nation and The Investigative Fund, trade associations like the ABA are the real “winners” of the Citizens United decision. Most corporations have eschewed so-called Super PACs because donations to these types of groups are generally disclosed. Big businesses, like banks and chemical companies, have instead chosen to channel tens of millions into federal elections through trade associations and other 501(c) groups.

Read the piece “Never Mind Super PACs: How Big Business Is Buying The Election.

Exclusive: Paul Ryan Quietly Requested Obamacare Cash

Republican vice-presidential candidate Paul Ryan is barnstorming the country, promising to repeal every provision of the Affordable Care Act if the Romney-Ryan ticket is elected. But a letter he wrote to the Obama administration may undermine this message.

On December 10, 2010, Ryan penned a letter to the Department of Health and Human Services to recommend a grant application for the Kenosha Community Health Center, Inc to develop a new facility in Racine, Wisconsin, an area within Ryan’s district. “The proposed new facility, the Belle City Neighborhood Health Center, will serve both the preventative and comprehensive primary healthcare needs of thousands of new patients of all ages who are currently without healthcare,” Ryan wrote.

Paul Ryan's request for Obamacare funds

The grant Ryan requested was funded directly by the Affordable Care Act, better known simply as healthcare reform or Obamacare. 

The letter, among several obtained by The Nation and The Investigative Fund through a Freedom of Information Act request, is a stark reminder that even the most ardent opponents of Obamacare privately acknowledge many of the law’s benefits.

Federally funded health clinics have long provided a broad range of vital medical, dental and mental health services to underprivileged communities across the country, regardless of a persons’ ability to pay. To meet the goal of expanding coverage, the Affordable Care Act provides for a sweeping expansion of such clinics, including $9.5 billion for operating costs to existing community health centers and $1.5 billion for new construction.

In public, Ryan has cultivated a profile as one of health reform’s most outspoken critics. He savages the Affordable Care Act as an example of “Washington’s reckless spending spree,” as “irresponsible,” and has warned repeatedly that it would place the “federal government squarely in the middle of health-care decisions.”

Explaining his “philosophical difference” with Democrats, Ryan told ABC News this summer that he would seek to repeal the “entire law” because healthcare rights come from “nature and God,” not the government. He expressed dismay that the Supreme Court upheld the law during the interview.

Despite Ryan’s quiet support for an Affordable Care Act clinic grant in his district, the Wisconsin congressman’s promise to repeal Obamacare would undermine the law’s five-year plan to rapidly grow the health clinic system in America by withdrawing the necessary funds. The so-called Ryan Budget plan would also decimate other federal support for health clinics, according to an analysis by the Center on Budget and Policy Priorities.

Before Republicans broadly agreed upon a strategy of opposing any health reform proposal embraced by President Obama, the party once supported access to healthcare using clinics. The Bush administration requested and received modest increases in federal health clinic funding over the years. Now, however, the GOP has made opposing the entire Affordable Care Act a central plank in its platform, and virtually no lawmakers have been willing to praise it while speaking to the media.

Ryan isn’t alone in shaking his fist at health reform with one hand while extending an open palm behind closed doors.

As I reported over a year ago, even Congressman Hal Rogers, a conservative Representative from Kentucky, and former Senator John Ensign, a rising star in the Republican Party before he resigned in disgrace, wrote letters asking for health reform grants while calling for absolute repeal. Rogers called health reform “socialistic” and a “monstrosity.” Nevertheless, he requested Obamacare funds for a nursing clinic in rural Clay County. The money, Rogers said in a letter to the Department of Health and Human Services, would “provide critical care in an area in extreme need of access to adequate healthcare.” Ensign recommended an application for a physician training grant made possible through the Affordable Care Act.

Rogers and Ryan have voted to repeal all of the Affordable Care Act on multiple occasions in the last two years.

“I don’t know what’s the bigger sin,” says Tom Perriello, a former Democratic congressman who championed health clinics as a supporter of the Affordable Care Act. “The hypocrisy of asking for funding from a program while seeking to repeal it, or that the Republicans have been so much more committed to hurting the president than to helping people that something as uncontroversial as funding for community health centers must be requested in secret.”

Perriello is now counselor for policy at the Center for American Progress, where I previously worked as a political blogger.

An outline of the health reform “replacement” legislation advanced by Mitt Romney and Ryan, mostly centered on proposals to gut state and federal health insurance regulations by allowing insurance providers to sell coverage across state lines, makes no mention of health clinics.

In addition to undercutting his political message about health reform, the letter may also add to an emerging narrative that Ryan has a double standard when it comes to critiquing major Obama policy achievements. Shortly after Romney announced that Ryan would be joining him on the Republican ticket this year, the Boston Globe revisited a story showing how Ryan quietly lobbied the Obama administration for stimulus grants. Ryan voted against the proposal and denounced it to the press without disclosing his requests for stimulus cash.

Ryan first denied responsibility for the stimulus grant requests, but later confessed that his office had sent the letters.

Republicans have praised Ryan for his willingness to embrace unpopular cuts to government programs and for being a “consistent conservative.” The fact that Ryan has privately pleaded with the Obama administration for government grants from the president’s signature policy accomplishments, however, could unravel that conceit.

UPDATE: Brendan Buck, a spokesperson for the Mitt Romney campaign, responded to this story by claiming that this "grant program was created by President Bush, not Obamacare. This... type of misinformation is what you get from gotcha reporting on liberal blogs." Ryan's letter directly requests money from the HRSA-11-017 New Access Points program announced in August of 2010. This New Access Points grant program that Ryan requested money from is funded fully by the Affordable Care Act, a fact made clear on multiple government websites. The claim that Bush "created" this program is also unfounded. Federally-funded health centers were created through the Public Health Services Act, legislation signed into law by President Franklin Roosevelt in 1944.  New Access Point grants have existed well before the Bush administration came to office. 

For more on fact-checking Paul Ryan, read Eric Alterman’s column this week.

Former Democratic Strategists Now Boost the GOP

Purple Strategies' Mark SquierIn 2008, Mark Squier was the executive producer of the Democratic National Convention in Denver. A veteran political consultant of several campaigns, including Howard Dean’s insurgent quest for the White House, Squier helped launch the Obama-Biden ticket into the final stretch of the campaign.

Now Squier is working for the other side.

Shortly after the general election four years ago, a slew of Democrats joined Republican consultant and CNN pundit Alex Castellanos to form a firm called Purple Strategies. Steve McMahon, also a former Dean operative at the DNC, merged his campaign company, Issue & Image, with Castellano’s National Media Research to form Purple Strategies.

A search of FEC records shows that Squier’s new firm has been hard at work helping to elect a GOP Congress and defeat Barack Obama. A search of Federal Elections Commission records provides a snapshot:

• Just in the last week, Purple Strategies’ media buying firm helped the National Republican Campaign Committee purchase $103,054 worth of attack ads in key Congressional races, including against Mike McIntyre, one of the most endangered House Democrats in North Carolina.

• Purple Strategies’ subsidiary is providing media production, creative services and focus group services for the Republican National Committee. In the last month, the firm collected $7,698,514 from the party.

• Purple Strategies is the consulting firm for the YG Action Fund, House Majority Leader Eric Cantor’s Super PAC.

In total, the company has received at least $43 million in contracts working for Republican candidates this cycle.

One might assume the name “Purple:” would mean that the firm provides bipartisan services. But the name seems to refer to only the firm’s composition—I could not find work on behalf of the poor, disadvantaged minority groups, environmental causes or any of the core left of center constituencies.

Other prominent Democrats at Purple Strategies: John Donovan and Meghan Johnson, both former DCCC strategists; CR Wooters, a former aide to Congressman Chris Van Hollen (D-MD); and Jim Jordan, a former executive director at the DSCC.

In previous years, Purple Strategies reportedly managed BP’s media relations strategy after the Deepwater Horizon spill. The firm also specializes in assisting trade associations, the lobbying juggernauts I profile in the latest edition of The Nation. Purple Strategies counts the US Chamber of Commerce, PhRMA and the American Chemistry Council as clients.

One of the biggest untold stories of the Obama administration is the extent to which supposedly Democrat-led lobbying and PR firms were eager to help undermine Democrats’ progressive agenda on behalf of corporate interests. It’s a story I will be revisiting later. But as delegates prepare to arrive in Charlotte for the DNC, it’s worth noting that the guy who was in charge of producing the event the last time is now working to elect Mitt Romney.

Liberal Defenders of Chick-Fil-A Unwittingly Defend Corporate Personhood [Updated]

Image courtesy Flickr user hectorir

Chick-Fil-A’s financial support to anti-gay causes has gone on for years with little commotion outside the LGBT activist community.

But that changed earlier this month when Dan Cathy, CEO of the fast food chain, told the Baptist Press that he is “guilty as charged” for pushing the company to take a stand in the national debate over marriage equality. Those comments set off a backlash—including boycotts, protests and politicians’ denouncing Chick-Fil-A. In Chicago and Boston, the mayors of each city fired off statements claiming the chicken sandwich joint is no longer welcome in town. The backlash, like any charged political debate, is now setting off its own backlash.

Liberal commentators Glenn Greenwald and Adam Serwer are leading the contrarian charge, claiming that mayors opposed to the construction of new Chick-Fil-A outlets are setting a “dangerous” precedent for violating the First Amendment:

• Mother Jones’s Adam Serwer (7/26/12): “Blocking construction of Chick-fil-a restaurants over Cathy’s views is a violation of Cathy’s First Amendment rights.”

• Salon’s Glenn Greenwald (7/26/12): “But that is not the case here; the actions are purely in retribution against the views of the business’ top executive on the desirability of same-sex marriage.”

• Boston Globe editorial (7/25/12): “But which part of the First Amendment does Menino not understand? A business owner’s political or religious beliefs should not be a test for the worthiness of his or her application for a business license.”

If the activist-led uprising against Chick-Fil-A were simply about the CEO’s views, I would agree with these comments. The debate, however, centers around how Chick-Fil-A and its business affiliates spend direct direct corporate cash on supporting anti-gay causes.

Here’s the real issue. Chick-Fil-A CEO Dan Cathy’s family manages a charity called the WinShape Foundation, which dispenses millions of dollars to anti-gay organizations, including Focus on the Family. Where does that money come from? According to tax disclosures, the WinShape Foundation received $8,067,161 from Chick-Fil-A corporation and $11.5 million from CFA Properties, a corporate affiliate of Chick-Fil-A registered in Delaware in 2010. Here’s a screenshot:

If a corporation uses its general treasury funds to finance political advocacy, does that mean any politician that takes action against that corporation in response to that advocacy is violating the First Amendment? It’s a question that comes down to whether you believe corporations have rights akin to human beings.

“You can’t have a business in the City of Boston that discriminates against a population,” said Boston Mayor Tom Menino in an interview with local press. He’s since walked back these comments after a storm of critics alleged that Menino was discriminating against a company based on the political beliefs of its CEO. But in this case, corporate profits derived from selling chicken sandwiches and waffle fries are being funneled to media and lobbying campaigns against gay Americans. Mayor Menino had a point.

Liberal defenders of Chick-Fil-A are quick to claim that an official ban would set a dangerous precedent that would amount to a chill on the First Amendment. But what about corporations that unload their corporate coffers bribing politicians, funding dark money political campaigns, busting unions, or other efforts to discriminate against minority populations—Latino immigrants, Muslim Americans, etc. Isn’t the decision to ignore how corporate money is spent setting a dangerous precedent?

UPDATE:

Earlier today, I wrote a post arguing that defenders of Chick-Fil-A are misrepresenting the recent controversy by claiming that the local governments threatening official action are violating the company’s First Amendment rights by acting solely on the views of Chick-Fil-A’s CEO. The defenders of Chick-Fil-A, and there are a good number across the ideological spectrum, claim government can’t take action against a corporation just for its CEO’s political beliefs—a position I certainly agree with, and made clear in my post. The corporation’s actions, not the CEO’s, are the problem.

What I should have pointed out in my first post is the relevant information that Chick-Fil-A reportedly “requires potential franchise operators to disclose their marital status, number of dependents, and involvement in social, church, and other organizations” and employees may be fired for “sinful” behavior. The company, which has been sued twelve times since 1988 for discrimination, is currently facing yet another lawsuit for alleged gender discrimination. Glenn Greenwald originally acknowledged that if Chick-Fil-A engages in discriminatory employment practices, then it would be perfectly legitimate to “take action against them.”

But my original point was that these Chick-Fil-A defenders missed the forest for the trees—the problem that LGBT activists have decried for years is that Chick-Fil-A uses its corporate profits to fund anti-gay media and lobbying campaigns, a fact well-documented by groups like Equality Matters. The CEO’s comments simply shed light on an issue that had been ignored by the mainstream press.

So first off, I’m glad Greenwald, who posted a response later in the afternoon, is now engaging in the substantive debate about how the company uses its general treasury to lobby, rather than the relative sideshow about what Chick-Fil-A CEO Dan Cathy believes.

How Chick-Fil-A uniquely uses its corporate coffers to fund discrimination advocacy is worth debate. As Jeremy Hooper reported, Chick-Fil-A’s corporate entity directly finances an anti-gay charity called the WinShape Foundation. As WinShape made clear in e-mails posted on Hooper’s blog, the foundation does “not accept homosexual couples because of the statement in our contract.” Franchise owners are often expected to attend WinShape gatherings. The foundation also funnels a great deal of money to other anti-gay advocacy groups using direct Chick-Fil-A company funds.

Does the corporation’s deeply embedded links to WinShape, which appears almost as an appendage of the company rather than simply a political endeavor, also constitute discrimination? That’s the question.

Also, let me make clear that I do believe that Mayors Menino and Emanuel acted out of haste and political expediency. Are they right to zone out a corporation by reflexively responding to news headlines? Absolutely not. I simply laid out part of the evidence that the Chick-Fil-A corporation acts directly to support discrimination, so when Menino said, “You can’t have a business in the City of Boston that discriminates against a population,” he had a point.

Conservative 'Free Beacon' Fronts for Taiwan Lobby

The Washington Free Beacon, a new website on the right, has a particular fascination with promoting weapon sales to Taiwan. In addition to daily hits on the Obama administration and Democrats, the Free Beacon has multiple posts calling for more F-16 fighter jet sales to the island nation, and has branded skeptics of militarization as “pro-China” activists.

The site, however, fails to disclose the fact that its sponsor is a lobbyist for a firm dedicated to helping Taiwan advance its policy agenda.

Michael Goldfarb, a former Republican staffer and writer, founded the Free Beacon with “several million dollars” in January of this year. Listed as the chairman of the 501(c) group that sponsors the Free Beacon website, Goldfarb is also a partner at the lobbying and public relations firm Orion Strategies, LLC.

The contract between the Taiwanese ambassador and Goldfarb’s firm, renewed last year for a period that ends on September 30, 2012, stipulates that Orion will be paid $180,000 a year to “provide advice and consulting services concerning Taiwan’s strategic goals.”

Orion’s advocacy, according to disclosures filed with the Justice Department, has centered on promoting US authorization to sell Lockheed Martin F-16 fighter jets to Taiwan. Mike Mitchell, Goldfarb’s partner at Orion, makes weekly calls to Congress to press lawmakers and their staff on the issue, from arranging Congressional visits to Taiwan to prepping for Senate hearings.

As Goldfarb’s firm quietly peddles influence for Taiwan’s arms agenda in Congress, his site provides a megaphone. A Free Beacon article from earlier this year quotes an anonymous “industry representative” to demand that the Obama Administration “release the 66 new Lockheed Martin F-16C/D Block 52+ fighter aircraft that Taiwan [has] requested to purchase.” Another Free Beacon piece promoting increased arms sales calls National Security Council member Evan Medeiros, a policy expert the Free Beacon claims played a “key figure in killing the planned sale of new F-16 jets to Taiwan,” a “key pro-China activist.”

There is no disclosure on the Free Beacon website that its chairman is paid to lobby for Taiwan and other interest groups.

Senator John Cornyn’s (R-TX) efforts on behalf of Taiwan have been guided, and publicized, by Goldfarb-related organizations. Orion has met with Cornyn or his staff more than fifty times in the last year on Taiwan-related issues, including “congressional strategy to promote F-16 sale[s] to Taiwan,” legislation to force new F-16 sales, and travel to the country.

The effort has paid off. On November 18, 2011, Cornyn placed a hold—a privilege given to Senators to unilaterally block almost any presidential appointee—against Mark Lippert to become an assistant secretary of defense for Asian and Pacific Security Affairs. Cornyn said he would block the nomination until the administration reconsidered the sale of 66 new F-16 jets to Taiwan. A week prior to the hold, Orion discussed Lippert-related strategy with Cornyn’s office, according to disclosures.

The hold, of course, was celebrated by the Free Beacon, which posted a digitized copy of Cornyn’s letter. Cornyn lifted his hold in April, after the White House pledged to give serious consideration to his Taiwan-related demands.

The extent to which Orion uses the Free Beacon as a front for its clients is unclear. A mandatory disclosure form for its foreign lobbying that was due in May of this year has still not been filed. A representative from the Justice Department confirmed to The Nation that Goldfarb’s firm has failed to file its 2012 Supplemental Statement.

Goldfarb has leveraged his relationship with conservative media to promote his clients’ concerns. On behalf of the Democratic Republic of Georgia, a country that currently has a $270,000 contract with Orion, Goldfarb arranged for an interview between Ambassador Temuri Yakobashvili and a Washington Jewish Week reporter named Adam Kredo last year. In December of 2010, he arranged for multiple journalists, including The Weekly Standards Matt Continetti, to have dinner with Georgian Vice Prime Minister Giorgi Baramidze. And last year, Goldfarb was hired by Koch Industries as part of the company’s “crisis communication” team. At the time, Goldfarb was still affiliated with The Weekly Standard, and the magazine’s writers, like Continetti, began publishing pieces defending the billionaire owners of Koch Industries, David and Charles Koch.

But all of this came before Goldfarb created his own conservative website. Now, Continetti and Kredo work for the Free Beacon, where both writers have written pieces in defense of Goldfarb clients.

Requests for comment to the Free Beacon, Orion Strategies and the Taiwan embassy have not been returned.

UPDATE (7/31/12):

Since publication of this piece, the Taiwan embassy contacted The Nation but did not provide further details. However, the Justice Department now displays Orion Strategy's first 2012 Supplemental Statement, which further confirms that Goldfarb's lobbying firm consulted with the Free Beacon on "Taiwan arms sales." See a screenshot below:



 

Lobbyists Bribed Congress With a Free Screening of 'The Dark Knight Rises'

Getting ready to see the new Batman movie, The Dark Night Rises? If you’re a Congressional staffer, especially one writing intellectual property legislation, you don’t have to wait in line or even buy tickets. And if you’re a sitting senator writing legislation important to the movie industry, you can even be in the movie.

The Nation has exclusively obtained an invitation provided to Congressional staffers, welcoming them to a VIP screening of the movie on Wednesday, July 18, at the Smithsonian National Museum of Natural History IMAX theater. Lobbyists from Warner Brothers Studios organized the event, which brought together staffers from both sides of the aisle—including, as we understand it, many staffers directly involved in copyright legislation.

The event was thinly guised as an “educational” get-together to avoid violating the gift-ban rule. “We also hope this discussion will deepen your understanding of the movie industry’s impact on job creation and the national economy,” reads the invitation. A source at the event told The Nation that an international trade spokesman from Time Warner/Warner Brothers gave a short speech before the movie began.

The movie has already attracted political controversy given the horrific tragedy in Aurora, Colorado, in which a gunman entered a theater on Thursday night and killed twelve people and wounded fifty-nine others.

As the country mourns the tragedy, few have given notice that Senator Patrick Leahy (D-VT) made his second appearance in the Batman series in The Dark Knight Rises.

As I’ve noted in the past, corruption comes in many forms, far beyond the campaign contributions the press likes to dwell upon. In some cases, it’s a discounted mortgage ;to members of Congress; sometimes it’s a free yacht or the promise of a future job. For Leahy, who chairs the powerful Judiciary Committee that controls intellectual property law vital to the movie industry and is known for his “lifelong” Batman obsession, it’s the fulfillment of a childhood fantasy.

The movie and music industry is dead-set on passing new intellectual property and piracy legislation. Their keystone goal, known as SOPA/PIPA, would grant both government and industry vast new powers to censor the Internet, a power grab widely criticized as an assault on the First Amendment.

Leahy and his Congressional staff were on board with the SOPA/PIPA push; he boldly promised in December to lead the coalition to pass this legislation. The bills were only stopped after one of the largest online advocacy drives in modern history.

The Batman giveaways for Congressional staff, which hasn’t been reported until now, is nothing new for the copyright industry. In December, the music lobby sponsored a party hosted by Wiz Khalifa and Snoop Dogg for Congressional staffers at the height of their advocacy effort over SOPA/PIPA.

Under the ethics rules, lobbyists cannot simply give away gifts to Congressional staff. So the Warner Brothers lobbyists allowed staffers to bring one guest—making the event a “widely attended event”—and provided a fifteen minute speech about new Time Warner–related products at the beginning of the movie, so that they could define the event as “educational.” Evidently, the ethics rules are riddled with loopholes.

The conflicts of interests are glaring. Leahy, who collects royalties from his previous Batman cameo, had his own special viewing of the movie last Sunday. Warner Brothers CEO Barry Meyer—the same Barry Meyer who has been called to testify as an expert witness before Leahy in the past—escorted Leahy to the event.

There’s nothing wrong with a senator being involved in entertainment. But it’s unlikely that Leahy was cast in the film because of his acting credentials or because viewers were anxious to see the senior senator from Vermont. Rather, this form of special treatment helps the movie industry gain a seat at the table when legislation is written.

Demand Progress, an advocacy group focused on Internet freedom and civil liberties, has a pretty entertaining petition to drive attention to the issue. It’s called “Holy Conflict of Interest, Batman!”

Prominent Romney Defender Has Lobbying Ties to Bain

Mitt Romney still hasn’t provided an adequate answer over the question of whether he completely left Bain Capital in February of 1999, as he claimed on his ethics forms.

While the candidate sputters to rebut the growing mountain of evidence that he continued to maintain ties to the firm for three years after he supposedly left, much of his defense rests with a former Securities and Exchange Commission chairman, Harvey Pitt. Pitt’s defense of Romney—claiming that Romney’s signature on Bain-related SEC documents during the years in question are insignificant—has been cited in the Wall Street Journal, New York Times and on Meet the Press. He told the Times, among other outlets, that dozens of filings showing Romney was CEO of Bain between 1999 and 2002 had “nothing to do with who’s actually running Bain Capital.” Romney’s surrogates, like Ed Gillespie, have trotted out Pitt’s name to dismiss any questions from the press.

What the media hasn’t reported, however, is that Pitt is now a bank lobbyist with ties to Romney’s former firm.

Pitt, who was appointed by President George Bush to serve as SEC chair from 2001 to 2003, founded his own lobbying firm called Kalorama Partners LLC, which is registered to lobby the federal government on finance issues.

Pitt is actively lobbying on behalf of a Wall Street coalition of which Bain Capital is a member. According to meeting logs reviewed by The Nation from the Commodity Futures Trading Commission, Pitt had at least five Dodd-Frank related meetings with regulators last year on behalf of the International Swaps and Derivatives Association (ISDA), a trade association of speculators that represents dozens of over-the-counter derivative trading companies. Sankaty Advisors, the “credit and fixed income investment affiliate of Bain Capital,” is an active member of ISDA.

Mitt Romney’s current ethics disclosures show that he still derives an income from Sankaty Advisors.

Pitt, who has many consulting clients in the finance world, even spoke two years ago at an event to announce $17 million in Bain Capital venture funding for a Louisiana firm.

As for Pitt’s persistent, and largely unchallenged, claim that Romney’s signature and listing on SEC documents as Bain’s chief executive from 1999-2002 is unimportant, there are conflicting opinions on this matter. Writing for Forbes.com, Peter Cohan spoke to a former SEC commissioner who told him that Romney may have violated the Advisers Act by misleading investors about the true nature of his involvement with Bain and its investment companies.

“If I were one of its investors, I would have wanted to know that Romney was out as CEO and that Bain Capital had appointed a highly talented individual to take Romney’s place,” notes Cohan.

Disregarding for a moment the legal consequences for Romney’s involvement with Bain post-1999, he still has not answered simple questions about why he continued to collect an income and travel back for business meetings during that period, and why he told reporters at the time that he was a part-time employee.

But as reporters cover this story, it’s likely Harvey Pitt will be injected into the conversation. It’s important that his ties to Bain Capital are disclosed.

VIDEO: GOP Senators Give Impassioned Speeches for Campaign Disclosure—Ten Years Ago

"I hope that the Senate will stand four square behind disclosure and sunlight and against the uncheck process of these [outside] electioneering ads that have certainly I think transformed the political landscape in ways that we could not possibly desire or embrace," thundered Senator Olympia Snowe (R-ME), in a speech imploring her colleagues to vote on an amendment to force campagin disclosure. But that was eleven years ago, during debate over McCain-Feingold campaign finance legislation.

Last night, Senator Snowe, along with every single Republican US Senator, voted to filibuster the Disclose Act, a legislative item designed to add transparency in the postCitizens United campaign finance landscape. The Disclose Act accomplishes essentially the exact same goal as Snowe's amendment over a decade ago. But her party has changed, and she along with it. I used C-SPAN’s archives to pull together a quick video showing half a dozen GOP senators giving impassioned speeches in support of full campaign transparency. Senator Mitch McConnell (R-KY), the leader of the opposition to any new campaign disclosure, as the Washington Post has noted, once supported providing transparency for outside money groups. Here are six senators who voted last night to kill the Disclos Act—Senators John McCain (R-AZ), Chuck Grassley (R-IA), Snowe, Thad Cochran (R-MS), McConnell, Pat Roberts (R-KS)—all speaking out on behalf of disclosure over a decade ago. Take a look:

 

“Campaign finance reform used to be an arena where Democrats and Republicans could find common ground,” said Senator Harry Reid (D-NV) on the floor this morning. Indeed, the GOP once supported unlimited spending and full campaign transparency. Now that Citizens United has allowed unrestrained corporate, individual and union donations in elections, the party has flipped, voting lock-step for secrecy.

The US Chamber of Commerce, Crossroads GPS, Americans for Prosperity and other 501(c)s have concealed hundreds of millions in corporate and individual donations to run ads since the Supreme Court decision. The GOP, knowing full well that these groups boost Republican and big-business candidates, are now firmly against any effort to add disclosure. The Chamber’s lobbyists are so concerned about disclosure, that one even compared going to war with the Obama administration on the issue to killing Qaddafi. "We will fight it through all available means,” the Chamber’s Bruce Josten told the New York Times. Referencing the effort to depose Libya’s leader, Muammar Qaddafi, Josten said, “To quote what they say every day on Libya, all options are on the table.”

And McConnell knows full well about the benefits of secrecy. Though he has suggested to the press that he’s afraid of donors being “intimidated” through exposure, he’s probably more motivated by pure partisan advantage. His former chief of staff, Steven Law, is the head of Crossroads GPS, the well-funded 501(c)(4) group that is dedicated largely to electing more GOP members to the US Senate. Anonymously funded attack-ad organizations like Crossroads GPS would be directly affected by the Disclose Act. (Notably, Democratic backers of the Disclose Act watered down the legislation voted on last night, revising it to take effect starting next campaign cycle.)

How Mitt Romney's Father Would Have Left Bain Capital

When one Romney considered leaving his successful business for public service, he made sure to relinquish pay, set up a new management team and officially step down as CEO. He left no gray area in terms of his corporate responsibilities overlapping other duties, as he told the press, because doing so would violate his principles. That was former Michigan Governor George Romney.

Archived news articles from the early sixties reveal a businessman and politician with a very different approach from that of his son Mitt, who now finds himself in an avoidable scandal over when he actually left his company, Bain Capital.

Mitt’s departure from Bain Capital was far less transparent. When Mitt Romney joined the Olympics organizing committee on February 11, 1999, did he take an official leave of absence with “no involvement in the management or investment activities” at Bain Capital, the private equity and investment firm he founded, or was he a “part-timer with Bain, providing input on investment and key personnel decisions,” as Boston media and a raft of documents filed with the Securities and Exchange Commission seem to suggest?

It’s a question that has the campaign suddenly floundering.

Romney’s team has gone into crisis mode, dispatching the candidate and his surrogates to combat accusations that he either misled investors over his role at Bain between 1999 and 2002, or provided a false statement on his recent ethics forms when he swore that he had no working relation to his firm during that period. So far, the blitz had led to more confusion and more pointed questions from the press.

The Obama campaign is quick to point out that Romney has taken credit for job gains by Bain companies from 1999 to 2002, yet has claimed that the outsourcing of jobs and the bankrupting of a steel mill company during those years can not be attributed to him given his supposed lack of involvement with the firm.

The spiraling controversy leaves much to ponder. Why didn’t Romney simply appoint an interim Bain CEO or officially demote himself during his leave of absence in Salt Lake City? If he cut off all involvement with Bain to run the Winter games, as Romney said on Friday in an interview with CNN, why did Romney spend the following years signing documents as the chief executive, while collecting over $100,000 in salary from his old firm?

The entire controversy might have been avoided if Romney had simply followed the path set by his father, George Romney, who took steps to clearly transition from his perch as the head of American Motors Corporation to public service. The elder Romney, who stepped down exactly thirty-seven years and a day before Mitt Romney’s announcement about heading the Salt Lake City Winter Olympics in 1999, made a conscious effort to severe ties with his auto business.

On February 10, 1962, at a press conference with Mitt in downtown Detroit, George Romney announced his intention to run for Michigan governor as a Republican. Widely respected by both parties, George, even with minimum political experience, was seen at the time as a potential challenger to President John Kennedy. The GOP cheered a new leader—Governor Nelson Rockefeller (R-NY) celebrated the news as “a real contribution to the strength and vitality of the Republican Party”; shareholders lamented the loss of a successful businessman to the world of politics.

In fact, when George initially informed the board of his intention to resign and run, he was asked to take a leave of absence instead. Richard E. Cross, the American Motors Corporation legal counsel, told the Los Angeles Times that he was “obviously reluctant” to see George go, especially since company profits were surging with record sales of the AMC Rambler. George had been referred to back then as the “prophet of the compact car” for introducing the Rambler in 1950 as an executive at a company that later merged with AMC.

The Wall Street Journal, on Monday, February 12, reported that at 9:00 am, George planned to attend a company board meeting so that he could officially request a leave of absence as chairman and president of American Motors Corporation. It was “inconsistent with my principles that I become a candidate for public office and maintain my business responsibilities,” said George, as he explained why he planned to forgo his salary and bonus.

George, however, changed his mind and decided it would be prudent to officially resign as CEO. Before the end of the day, George had set up a management transition team. Roy Abernethy, the company’s executive vice president, would be promoted as president and chief operating officer, along with Cross, who would serve as AMC’s chairman.

The board elected George as vice chairman, but granted him an indefinite leave of absence without pay. He even had time left over to attend a political meeting in Lansing that same day. In November, after he won his election, George stepped down from his largely ceremonial role.

Four decades later, Mitt Romney, on the other hand, joined the Olympics and left his business in limbo. He chose to remain technically as Bain CEO while shifting most of the responsibilities to the other Bain Capital partners. A leadership struggle ensued, and Mitt continued to rake in a salary and travel back to Massachusetts at times for company board meetings with some of his investments. And now the claim, made by Mitt to the Office of Government Ethics and dozens of news stations, that he had nothing to do with Bain during those years is threatening to derail his campaign.

George Romney’s shadow already looms large over some of the most controversial political problems faced by his son. In 1967, it was George, during his own presidential bid, who released twelve years of tax returns as a show of transparency. He said that candidates should show multiple years because just “one year could be a fluke, perhaps done for show.” The tradition started by his father is the other big issue haunting Mitt on the trail today as he refuses to release more than two years of returns.

A detailed history of George Romney’s failed quest for the presidency, published by New York magazine’s Benjamin Wallace-Wells, paints a picture of Mitt’s own bid for the White House deeply colored by efforts not to repeat his father’s mistakes.

But if Mitt had merely followed George’s strict ethical code on separating from business before entering public service, he wouldn’t find himself in the quagmire he is in today.

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